[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1711 Enrolled Bill (ENR)]

        S.1711

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six


                                 An Act


 
To amend title 38, United States Code, to improve the benefits programs 
  administered by the Secretary of Veterans Affairs, to provide for a 
   study of the Federal programs for 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 ``Veterans' Benefits 
Improvements Act of 1996''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:
Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.

                       TITLE I--EDUCATION BENEFITS

Sec. 101. Employment handicap for which an individual may receive 
          training and rehabilitation assistance.
Sec. 102. Permanent authority for alternative teacher certification 
          programs.
Sec. 103. Period of operation for approval.
Sec. 104. Elimination of distinction between open circuit TV and 
          independent study.
Sec. 105. Cooperative programs.
Sec. 106. Enrollment of certain VEAP participants in Montgomery GI Bill. 

Sec. 107. Montgomery GI Bill eligibility for certain active duty members 
          of Army and Air National Guard. 

                 TITLE II--HOUSING AND MEMORIAL AFFAIRS

                           Subtitle A--Housing

Sec. 201. Extension of enhanced loan asset sale authority.
Sec. 202. Direct loans to refinance loans under Native American veteran 
          housing loan pilot program.

                      Subtitle B--Memorial Affairs

Sec. 211. Clarification of eligibility of minors for burial in national 
          cemeteries.
Sec. 212. Burial benefits for certain veterans who die in State nursing 
          homes.
Sec. 213. Outer burial receptacles. 

                   TITLE III--EMPLOYMENT AND TRAINING

              Subtitle A--Veterans' Employment and Training

Sec. 301. Regional Administrator.
Sec. 302. Support personnel for Directors of Veterans' Employment and 
          Training.
Sec. 303. Pilot program to integrate and streamline functions of local 
          veterans' employment representatives.

  Subtitle B--Technical Amendments Relating to the Uniformed Services 
             Employment and Reemployment Rights Act of 1994

Sec. 311. Amendments to chapter 43 of title 38, United States Code.
Sec. 312. Amendments to transition rules and effective dates.
Sec. 313. Effective dates.

               TITLE IV--VETERANS LIFE INSURANCE PROGRAMS

Sec. 401. Short title.
Sec. 402. Merger of Retired Reserve Servicemembers' Group Life Insurance 
          and Veterans' Group Life Insurance and extension of Veterans' 
          Group Life Insurance to members of the Ready Reserve.
Sec. 403. Conversion of SGLI and VGLI to commercial life insurance 
          policy.
Sec. 404. Information to be provided members concerning automatic 
          maximum coverage of $200,000 under Servicemen's Group Life 
          Insurance.
Sec. 405. Renaming of Servicemen's Group Life Insurance program.
Sec. 406. Technical amendment.

     TITLE V--DEPARTMENT OF VETERANS AFFAIRS ADMINISTRATIVE MATTERS

Sec. 501. Revision of authority relating to Centers for Minority 
          Veterans and Women Veterans. 
Sec. 502. Limitation on clothing allowance for incarcerated veterans.
Sec. 503. Extension of Veterans' Claims Adjudication Commission.
Sec. 504. Pilot program for use of contract physicians for disability 
          examinations.
Sec. 505. Expansion of period of Vietnam era for certain veterans. 
Sec. 506. Payment of benefit to surviving spouse for month in which 
          veteran dies.
Sec. 507. Increase in period for which accrued benefits payable.
Sec. 508. Appointment of veterans service organizations as claimants' 
          representatives.
Sec. 509. Provision of copies of Board of Veterans' Appeals decisions.
Sec. 510. Limitation on relocation or reduction in staffing of certain 
          elements of the Education Service of the Veterans Benefits 
          Administration.

                         TITLE VI--OTHER MATTERS

Sec. 601. Extension of certain authorities for services for homeless 
          veterans.
Sec. 602. Repair and long-term maintenance of war memorials.

    TITLE VII--COMMISSION ON SERVICEMEMBERS AND VETERANS TRANSITION 
                               ASSISTANCE

Sec. 701. Establishment of Commission.
Sec. 702. Duties of Commission.
Sec. 703. Powers of Commission.
Sec. 704. Miscellaneous administrative provisions.
Sec. 705. Commission personnel matters.
Sec. 706. Termination of Commission.
Sec. 707. Definitions.
Sec. 708. Funding.

SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to or repeal 
of a section or other provision, the reference shall be considered to 
be made to a section or other provision of title 38, United States 
Code.

                      TITLE I--EDUCATION BENEFITS

    SEC. 101. EMPLOYMENT HANDICAP FOR WHICH AN INDIVIDUAL MAY RECEIVE 
      TRAINING AND REHABILITATION ASSISTANCE.
    (a) Definitions.--Section 3101 is amended--
        (1) in paragraph (1), by inserting ``, resulting in substantial 
    part from a disability described in section 3102(1)(A) of this 
    title,'' after ``impairment'';
        (2) in paragraph (6), by inserting ``authorized under section 
    3120 of this title'' after ``assistance''; and
        (3) in paragraph (7), by inserting ``, resulting in substantial 
    part from a service-connected disability rated at 10 percent or 
    more,'' after ``impairment''.
    (b) Basic Entitlement.--Section 3102 is amended--
        (1) in paragraph (1)(A)(i), by striking out ``which is'' and 
    all that follows through ``chapter 11 of this title and'' and 
    inserting in lieu thereof ``rated at 20 percent or more'';
        (2) in paragraph (2)(A), by striking out ``which is'' and all 
    that follows through ``chapter 11 of this title and'' and inserting 
    in lieu thereof ``rated at 10 percent''; and
        (3) by amending paragraph (2)(B) to read as follows:
            ``(B) is determined by the Secretary to be in need of 
        rehabilitation because of a serious employment handicap.''.
    (c) Periods of Eligibility.--Section 3103 is amended--
        (1) in subsection (b)(3), by striking out ``described in 
    section 3102(1)(A)(i) of this title'' and inserting in lieu thereof 
    ``rated at 10 percent or more'';
        (2) in subsection (c)--
            (A) in the matter preceding paragraph (1), by striking out 
        ``particular'' and inserting in lieu thereof ``current''; and
            (B) in paragraph (2), by striking out ``veteran's 
        employment'' and inserting in lieu thereof ``veteran's current 
        employment''; and
        (3) in subsection (d), by striking out ``under this chapter'' 
    and inserting in lieu thereof ``in accordance with the provisions 
    of section 3120 of this title''.
    (d) Scope of Services and Assistance.--Section 3104 is amended--
        (1) in subsection (a)--
            (A) in paragraph (1)--
                (i) by striking out ``such veteran's disability or 
            disabilities cause'' and inserting in lieu thereof ``the 
            veteran has an employment handicap or''; and
                (ii) by inserting ``reasonably'' after ``goal is'';
            (B) in paragraph (7)(A)--
                (i) by striking out ``(i)''; and
                (ii) by striking out ``, and (ii)'' and all that 
            follows through ``such Act''; and
            (C) in paragraph (12), by striking out ``For the most 
        severely disabled veterans requiring'' and inserting in lieu 
        thereof ``For veterans with the most severe service-connected 
        disabilities who require''; and
        (2) by striking out subsection (b) and redesignating subsection 
    (c) as subsection (b).
    (e) Duration of Rehabilitation Programs.--Paragraph (1) of section 
3105(c) is amended by striking out ``veteran's employment'' and 
inserting in lieu thereof ``veteran's current employment''.
    (f) Initial and Extended Evaluations; Determinations Regarding 
Serious Employment Handicap.--(1) Section 3106 is amended--
        (A) in subsection (a), by striking out ``described in clause 
    (i) or (ii) of section 3102(1)(A) of this title'' and inserting in 
    lieu thereof ``rated at 10 percent or more'';
        (B) in subsection (b), by striking out ``counseling in 
    accordance with'';
        (C) in subsection (c), by striking out ``with extended'' and 
    inserting in lieu thereof ``with an extended''; and
        (D) by redesignating subsections (d) and (e) as subsections (e) 
    and (f), respectively, and inserting after subsection (c) the 
    following new subsection:
    ``(d) In any case in which the Secretary has determined that a 
veteran has a serious employment handicap and also determines, 
following such initial and any such extended evaluation, that 
achievement of a vocational goal currently is not reasonably feasible, 
the Secretary shall determine whether the veteran is capable of 
participating in a program of independent living services and 
assistance under section 3120 of this title.''.
    (2) Chapter 31 is amended--
        (A) in section 3107(c)(2), by striking out ``3106(e)'' and 
    inserting in lieu thereof ``3106(f)'';
        (B) in section 3109, by striking out ``3106(d)'' and inserting 
    in lieu thereof ``3106(e)'';
        (C) in section 3118(c), by striking out ``3106(e)'' and 
    inserting in lieu thereof ``3106(f)''; and
        (D) in section 3120(b), by striking out ``3106(d)'' and 
    inserting in lieu thereof ``3106(d) or (e)''.
    (g) Allowances.--Section 3108 is amended--
        (1) in subsection (a)(2), by striking out ``following the 
    conclusion of such pursuit'' and inserting in lieu thereof ``while 
    satisfactorily following a program of employment services provided 
    under section 3104(a)(5) of this title''; and
        (2) in subsection (f)(1)--
            (A) in subparagraph (A)--
                (i) by inserting ``eligible for and'' after ``veteran 
            is'';
                (ii) by striking out ``chapter 30 or 34'' and inserting 
            in lieu thereof ``chapter 30''; and
                (iii) by striking out ``either chapter 30 or chapter 
            34'' and inserting in lieu thereof ``chapter 30''; and
            (B) in subparagraph (B), by striking out ``chapter 30 or 
        34'' and inserting in lieu thereof ``chapter 30''.
    (h) Employment Assistance.--Paragraph (1) of section 3117(a) is 
amended by inserting ``rated at 10 percent or more'' after 
``disability''.
    (i) Program of Independent Living Services and Assistance.--Section 
3120 is amended--
        (1) in subsection (b), by striking out ``service-connected 
    disability described in section 3102(1)(A)'' and inserting in lieu 
    thereof ``serious employment handicap resulting in substantial part 
    from a service-connected disability described in section 
    3102(1)(A)(i)''; and
        (2) in subsection (d), by striking out ``and (b)''.
    (j) Effective Date.--(1) Except as provided in paragraph (2), the 
amendments made by this section shall take effect on the date of the 
enactment of this Act.
    (2) The amendments made by subsection (a) (other than paragraph 
(2)), subsection (d) (other than subparagraphs (A) and (B) of paragraph 
(1)), and subsection (i) shall only apply with respect to claims of 
eligibility or entitlement to services and assistance (including claims 
for extension of such services and assistance) under chapter 31 of 
title 38, United States Code, received by the Secretary of Veterans 
Affairs on or after the date of the enactment of this Act, including 
those claims based on original applications, and applications seeking 
to reopen, revise, reconsider, or otherwise adjudicate or readjudicate 
on any basis claims for services and assistance under such chapter.
    SEC. 102. PERMANENT AUTHORITY FOR ALTERNATIVE TEACHER CERTIFICATION 
      PROGRAMS.
    Subsection (c) of section 3452 is amended by striking out ``For the 
period ending on September 30, 1996, such'' and inserting in lieu 
thereof ``Such''.

SEC. 103. PERIOD OF OPERATION FOR APPROVAL.

    (a) In General.--(1) Chapter 36 is amended--
        (A) by striking out section 3689; and
        (B) by striking out the item relating to section 3689 in the 
    table of sections at the beginning of such chapter.
    (2) Subparagraph (C) of section 3680A(d)(2) is amended by striking 
out ``3689(b)(6) of this title'' and inserting in lieu thereof 
``subsection (g)''.
    (b) Disapproval of Enrollment in Certain Courses.--Section 3680A is 
amended by adding after subsection (d) the following new subsections:
    ``(e) The Secretary may not approve the enrollment of an eligible 
veteran in a course not leading to a standard college degree offered by 
a proprietary profit or proprietary nonprofit educational institution 
if--
        ``(1) the educational institution has been operating for less 
    than two years;
        ``(2) the course is offered at a branch of the educational 
    institution and the branch has been operating for less than two 
    years; or
        ``(3) following either a change in ownership or a complete move 
    outside its original general locality, the educational institution 
    does not retain substantially the same faculty, student body, and 
    courses as before the change in ownership or the move outside the 
    general locality (as determined in accordance with regulations the 
    Secretary shall prescribe) unless the educational institution 
    following such change or move has been in operation for at least 
    two years.
    ``(f) The Secretary may not approve the enrollment of an eligible 
veteran in a course as a part of a program of education offered by an 
educational institution if the course is provided under contract by 
another educational institution or entity and--
        ``(1) the Secretary would be barred under subsection (e) from 
    approving the enrollment of an eligible veteran in the course of 
    the educational institution or entity providing the course under 
    contract; or
        ``(2) the educational institution or entity providing the 
    course under contract has not obtained approval for the course 
    under this chapter.
    ``(g) Notwithstanding subsections (e) and (f), the Secretary may 
approve the enrollment of an eligible veteran in a course approved 
under this chapter if the course is offered by an educational 
institution under contract with the Department of Defense or the 
Department of Transportation and is given on or immediately adjacent to 
a military base, Coast Guard station, National Guard facility, or 
facility of the Selected Reserve.''.
    (c) Approval of Accredited Courses.--Subsection (b) of section 3675 
is amended to read as follows:
    ``(b) As a condition of approval under this section, the State 
approving agency must find the following:
        ``(1) The educational institution keeps adequate records, as 
    prescribed by the State approving agency, to show the progress and 
    grades of the eligible person or veteran and to show that 
    satisfactory standards relating to progress and conduct are 
    enforced.
        ``(2) The educational institution maintains a written record of 
    the previous education and training of the eligible person or 
    veteran that clearly indicates that appropriate credit has been 
    given by the educational institution for previous education and 
    training, with the training period shortened proportionately.
        ``(3) The educational institution and its approved courses meet 
    the criteria of paragraphs (1), (2), and (3) of section 3676(c) of 
    this title.''.
    SEC. 104. ELIMINATION OF DISTINCTION BETWEEN OPEN CIRCUIT TV AND 
      INDEPENDENT STUDY.
    (a) Veterans' Educational Assistance Program.--Subsection (f) of 
section 3482 is amended by striking out ``in part''.
    (b) Survivors' and Dependents' Educational Assistance.--Section 
3523 is amended--
        (1) in subsection (a)(4), by inserting ``(including open 
    circuit television)'' after ``independent study program'' the 
    second place it appears; and
        (2) in subsection (c), by striking out ``radio'' and all that 
    follows through the end and inserting in lieu thereof ``radio.''.
    (c) Administration of Educational Benefits.--Subsection (c) of 
section 3680A is amended by striking out ``radio'' and all that follows 
through the end and inserting in lieu thereof ``radio.''.

SEC. 105. COOPERATIVE PROGRAMS.

    (a) Chapter 30.--Section 3032 is amended by striking out subsection 
(d) and redesignating subsections (e) and (f) as subsections (d) and 
(e), respectively.
    (b) Chapter 32.--Section 3231 is amended by striking out subsection 
(d) and redesignating subsections (e) and (f) as subsections (d) and 
(e), respectively.
    (c) Chapter 35.--Subsection (b) of section 3532 is amended by 
striking out ``$327'' and inserting in lieu thereof ``$404''.
    (d) Chapter 1606.--Section 16131 of title 10, United States Code, 
is amended--
        (1) by striking out subsection (e) and redesignating 
    subsections (f), (g), (h), (i), and (j) as subsections (e), (f), 
    (g), (h), and (i), respectively; and
        (2) in subsection (b)(1), by striking out ``(g)'' and inserting 
    in lieu thereof ``(f)''.
    SEC. 106. ENROLLMENT OF CERTAIN VEAP PARTICIPANTS IN MONTGOMERY GI 
      BILL.
    (a) In General.--Subchapter II of chapter 30 is amended by 
inserting after section 3018B the following new section:

``Sec. 3018C. Opportunity for certain VEAP participants to enroll

    ``(a) Notwithstanding any other provision of law, an individual 
who--
        ``(1) is a participant on the date of the enactment of the 
    Veterans' Benefits Improvements Act of 1996 in the educational 
    benefits program provided by chapter 32 of this title;
        ``(2) is serving on active duty (excluding the periods referred 
    to in section 3202(1)(C) of this title) on such date;
        ``(3) before applying for benefits under this section, has 
    completed the requirements of a secondary school diploma (or 
    equivalency certificate) or has successfully completed the 
    equivalent of 12 semester hours in a program of education leading 
    to a standard college degree;
        ``(4) if discharged or released from active duty during the 
    one-year period specified in paragraph (5), is discharged or 
    released therefrom with an honorable discharge; and
        ``(5) during the one-year period beginning on the date of the 
    enactment of the Veterans' Benefits Improvements Act of 1996, makes 
    an irrevocable election to receive benefits under this section in 
    lieu of benefits under chapter 32 of this title, pursuant to 
    procedures which the Secretary of each military department shall 
    provide in accordance with regulations prescribed by the Secretary 
    of Defense for the purpose of carrying out this section or which 
    the Secretary of Transportation shall provide for such purpose with 
    respect to the Coast Guard when it is not operating as a service in 
    the Navy;
may elect to become entitled to basic educational assistance under this 
chapter.
    ``(b) With respect to an individual who makes an election under 
subsection (a) to become entitled to basic education assistance under 
this chapter--
        ``(1) the basic pay of the individual shall be reduced (in a 
    manner determined by the Secretary of Defense) until the total 
    amount by which such basic pay is reduced is $1,200; or
        ``(2) to the extent that basic pay is not so reduced before the 
    individual's discharge or release from active duty as specified in 
    subsection (a)(4), the Secretary shall collect from the individual 
    an amount equal to the difference between $1,200 and the total 
    amount of reductions under paragraph (1), which shall be paid into 
    the Treasury of the United States as miscellaneous receipts.
    ``(c)(1) Except as provided in paragraph (3), an individual who is 
enrolled in the educational benefits program provided by chapter 32 of 
this title and who makes the election described in subsection (a)(5) 
shall be disenrolled from such chapter 32 program as of the date of 
such election.
    ``(2) For each individual who is disenrolled from such program, the 
Secretary shall refund--
        ``(A) to the individual, as provided in section 3223(b) of this 
    title and subject to subsection (b)(2) of this section, the unused 
    contributions made by the individual to the Post-Vietnam Era 
    Veterans Education Account established pursuant to section 3222(a) 
    of this title; and
        ``(B) to the Secretary of Defense the unused contributions 
    (other than contributions made under section 3222(c) of this title) 
    made by such Secretary to the Account on behalf of such individual.
    ``(3) Any contribution made by the Secretary of Defense to the 
Post-Vietnam Era Veterans Education Account pursuant to subsection (c) 
of section 3222 of this title on behalf of any individual referred to 
in paragraph (1) shall remain in such account to make payments of 
benefits to such individual under section 3015(f) of this title.
    ``(d) The procedures provided in regulations referred to in 
subsection (a) shall provide for notice of the requirements of 
subparagraphs (B), (C), and (D) of section 3011(a)(3) and of 
subparagraph (A) of section 3012(a)(3) of this title. Receipt of such 
notice shall be acknowledged in writing.''.
    (b) Conforming Amendments.--(1) The table of sections at the 
beginning of chapter 30 is amended by inserting after the item relating 
to section 3018B the following new item:
``3018C. Opportunity for certain VEAP participants to enroll.''.

    (2) Subsection (d) of section 3013 is amended by striking out ``or 
3018B'' and inserting in lieu thereof ``, 3018B, or 3018C''.
    (3) Subsection (f) of section 3015 is amended by inserting ``, 
3018B, or 3018C'' after ``section 3018A''.
    (c) Transfer of Educational Assistance Funds.--(1) Subparagraph (B) 
of section 3232(b)(2) is amended--
        (A) by striking out ``, for the purposes of section 1322(a) of 
    title 31,''; and
        (B) by striking out ``as provided in such section'' and 
    inserting in lieu thereof ``to the Secretary for payments for 
    entitlement earned under subchapter II of chapter 30''.
    (2) Paragraph (1) of section 3035(b) is amended by inserting before 
the period at the end the following: ``and from transfers from the 
Post-Vietnam Era Veterans Education Account pursuant to section 
3232(b)(2)(B) of this title''.
    SEC. 107. MONTGOMERY GI BILL ELIGIBILITY FOR CERTAIN ACTIVE DUTY 
      MEMBERS OF ARMY AND AIR NATIONAL GUARD.
    (a) In General.--Paragraph (7) of section 3002 is amended by 
striking out ``November 29, 1989'' and inserting in lieu thereof ``June 
30, 1985''.
    (b) Application.--(1) An individual may only become eligible for 
benefits under chapter 30 of title 38, United States Code, as a result 
of the amendment made by subsection (a) by making an election to become 
entitled to basic educational assistance under such chapter. The 
election may only be made during the nine-month period beginning on the 
date of the enactment of this Act and in the manner required by the 
Secretary of Defense.
    (2) In the case of any individual making an election under 
paragraph (1)--
        (A) the basic pay of an individual who, while a member of the 
    Armed Forces, makes an election under paragraph (1) shall be 
    reduced (in a manner determined by the Secretary of Defense) until 
    the total amount by which such basic pay is reduced is $1,200; or
        (B) to the extent that basic pay is not so reduced before the 
    individual's discharge or release from active duty, the Secretary 
    of Veterans Affairs shall collect from an individual who makes such 
    an election an amount equal to the difference between $1,200 and 
    the total amount of reductions under subparagraph (A), which amount 
    shall be paid into the Treasury as miscellaneous receipts.
    (3) In the case of any individual making an election under 
paragraph (1), the 10-year period referred to in section 3031 of such 
title shall begin on the later of--
        (A) the date determined under such section 3031; or
        (B) the date on which the election under paragraph (1) becomes 
    effective.

                 TITLE II--HOUSING AND MEMORIAL AFFAIRS
                          Subtitle A--Housing

SEC. 201. EXTENSION OF ENHANCED LOAN ASSET SALE AUTHORITY.

    Paragraph (2) of section 3720(h) is amended by striking out 
``December 31, 1996'' and inserting in lieu thereof ``December 31, 
1997''.
    SEC. 202. DIRECT LOANS TO REFINANCE LOANS UNDER NATIVE AMERICAN 
      VETERAN HOUSING LOAN PILOT PROGRAM.
    (a) Authority.--Section 3762 is amended--
        (1) by redesignating subsection (h) as subsection (i); and
        (2) by inserting after subsection (g) the following new 
    subsection (h):
    ``(h)(1) The Secretary may make direct loans to Native American 
veterans in order to enable such veterans to refinance existing loans 
made under this section.
    ``(2)(A) The Secretary may not make a loan under this subsection 
unless the loan meets the requirements set forth in subparagraphs (B), 
(C), and (E) of paragraph (1) of section 3710(e) of this title.
    ``(B) The Secretary may not make a loan under this subsection 
unless the loan will bear an interest rate at least one percentage 
point less than the interest rate borne by the loan being refinanced.
    ``(C) Paragraphs (2) and (3) of such section 3710(e) shall apply to 
any loan made under this subsection, except that for the purposes of 
this subsection the reference to subsection (a)(8) of section 3710 of 
this title in such paragraphs (2) and (3) shall be deemed to be a 
reference to this subsection.''.
    (b) Loan Fee.--Section 3729(a)(2)(E) is amended by striking out 
``or 3712(a)(1)(F)'' and inserting in lieu thereof ``3712(a)(1)(F), or 
3762(h)''.

                      Subtitle B--Memorial Affairs

    SEC. 211. CLARIFICATION OF ELIGIBILITY OF MINORS FOR BURIAL IN 
      NATIONAL CEMETERIES.
    Section 2402(5) is amended by inserting after ``minor child'' the 
following: ``(which for purposes of this chapter includes a child under 
21 years of age, or under 23 years of age if pursuing a course of 
instruction at an approved educational institution)''.
    SEC. 212. BURIAL BENEFITS FOR CERTAIN VETERANS WHO DIE IN STATE 
      NURSING HOMES.
    Subsection (a) of section 2303 is amended to read as follows:
    ``(a)(1) When a veteran dies in a facility described in paragraph 
(2), the Secretary shall--
        ``(A) pay the actual cost (not to exceed $300) of the burial 
    and funeral or, within such limits, may make contracts for such 
    services without regard to the laws requiring advertisement for 
    proposals for supplies and services for the Department; and
        ``(B) when such a death occurs in a State, transport the body 
    to the place of burial in the same or any other State.
    ``(2) A facility described in this paragraph is--
        ``(A) a Department facility (as defined in section 1701(4) of 
    this title) to which the deceased was properly admitted for 
    hospital, nursing home, or domiciliary care under section 1710 or 
    1711(a) of this title; or
        ``(B) an institution at which the deceased veteran was, at the 
    time of death, receiving--
            ``(i) hospital care in accordance with section 1703 of this 
        title;
            ``(ii) nursing home care under section 1720 of this title; 
        or
            ``(iii) nursing home care for which payments are made under 
        section 1741 of this title.''.

SEC. 213. OUTER BURIAL RECEPTACLES.

    (a) In General.--Subsection (d) of section 2306 is amended--
        (1) in paragraph (1), by striking out ``a grave liner'' each 
    place it appears and inserting in lieu thereof ``an outer burial 
    receptacle'';
        (2) in paragraph (2)--
            (A) by striking out ``grave liners'' and inserting in lieu 
        thereof ``outer burial receptacles''; and
            (B) by striking out ``specifications and procedures'' and 
        inserting in lieu thereof ``regulations or procedures''; and
        (3) by adding at the end the following:
    ``(3) Regulations or procedures under paragraph (2) may specify 
that--
        ``(A) an outer burial receptacle other than a grave liner be 
    provided in lieu of a grave liner at the election of the survivors 
    of the interred veteran; and
        ``(B) if an outer burial receptacle other than a grave liner is 
    provided in lieu of a grave liner upon an election of such 
    survivors, such survivors be required--
            ``(i) to pay the amount by which the cost of the outer 
        burial receptacle exceeds the cost of the grave liner that 
        would otherwise have been provided in the absence of the 
        election; and
            ``(ii) to pay the amount of the administrative costs 
        incurred by the Secretary (or, with respect to Arlington 
        National Cemetery, the Secretary of the Army) in providing the 
        outer burial receptacle in lieu of such grave liner.
    ``(4) Regulations or procedures under paragraph (2) may provide for 
the use of a voucher system, or other system of reimbursement approved 
by the Secretary (or, with respect to Arlington National Cemetery, the 
Secretary of the Army), for payment for outer burial receptacles other 
than grave liners provided under such regulations or procedures.''.
    (b) Conforming Amendments.--(1) The heading of such section is 
amended to read as follows:

``Sec. 2306. Headstones, markers, and burial receptacles''.

    (2) The table of sections at the beginning of chapter 23 is amended 
by striking out the item relating to section 2306 and inserting in lieu 
thereof the following new item:
``2306. Headstones, markers, and burial receptacles.''.

                   TITLE III--EMPLOYMENT AND TRAINING
             Subtitle A--Veterans' Employment and Training

SEC. 301. REGIONAL ADMINISTRATOR.

    Paragraph (1) of section 4102A(e) is amended by adding at the end 
the following: ``Each Regional Administrator appointed after the date 
of the enactment of the Veterans' Benefits Improvements Act of 1996 
shall be a veteran.''.
    SEC. 302. SUPPORT PERSONNEL FOR DIRECTORS OF VETERANS' EMPLOYMENT 
      AND TRAINING.
    Subsection (a) of section 4103 is amended--
        (1) in the first sentence, by striking out ``full-time Federal 
    clerical support'' and inserting in lieu thereof ``full-time 
    Federal clerical or other support personnel''; and
        (2) in the third sentence, by striking out ``Full-time Federal 
    clerical support personnel'' and inserting in lieu thereof ``Full-
    time Federal clerical or other support personnel''.
    SEC. 303. PILOT PROGRAM TO INTEGRATE AND STREAMLINE FUNCTIONS OF 
      LOCAL VETERANS' EMPLOYMENT REPRESENTATIVES.
    (a) Authority To Conduct Pilot Program.--In order to assess the 
effects on the timeliness and quality of services to veterans resulting 
from re-focusing the staff resources of local veterans' employment 
representatives, the Secretary of Labor may conduct a pilot program 
under which the primary responsibilities of local veterans' employment 
representatives will be case management and the provision and 
facilitation of direct employment and training services to veterans.
    (b) Authorities Under Chapter 41.--To implement the pilot program, 
the Secretary of Labor may suspend or limit application of those 
provisions of chapter 41 of title 38, United States Code (other than 
sections 4104(b)(1) and (c)) that pertain to the Local Veterans' 
Employment Representative Program in States designated by the Secretary 
under subsection (d), except that the Secretary may use the authority 
of such chapter, as the Secretary may determine, in conjunction with 
the authority of this section, to carry out the pilot program. The 
Secretary may collect such data as the Secretary considers necessary 
for assessment of the pilot program. The Secretary shall measure and 
evaluate on a continuing basis the effectiveness of the pilot program 
in achieving its stated goals in general, and in achieving such goals 
in relation to their cost, their effect on related programs, and their 
structure and mechanisms for delivery of services.
    (c) Targeted Veterans.--Within the pilot program, eligible veterans 
who are among groups most in need of intensive services, including 
disabled veterans, economically disadvantaged veterans, and veterans 
separated within the previous four years from active military, naval, 
or air service shall be given priority for service by local veterans' 
employment representatives. Priority for the provision of service shall 
be given first to disabled veterans and then to the other categories of 
veterans most in need of intensive services in accordance with 
priorities determined by the Secretary of Labor in consultation with 
appropriate State labor authorities.
    (d) States Designated.--The pilot program shall be limited to not 
more than five States to be designated by the Secretary of Labor.
    (e) Reports to Congress.--(1) Not later than one year after the 
date of the enactment of this Act, the Secretary of Labor shall submit 
to the Committees on Veterans' Affairs of the Senate and the House of 
Representatives an interim report describing in detail the development 
and implementation of the pilot program on a State by State basis.
    (2) Not later than 120 days after the expiration of this section 
under subsection (h), the Secretary of Labor shall submit to the 
Committees on Veterans' Affairs of the Senate and the House of 
Representatives a final report evaluating the results of the pilot 
program and make recommendations based on the evaluation, which may 
include legislative recommendations.
    (f) Definitions.--For the purposes of this section:
        (1) The term ``veteran'' has the meaning given such term by 
    section 101(2) of title 38, United States Code.
        (2) The term ``disabled veteran'' has the meaning given such 
    term by section 4211(3) of such title.
        (3) The term ``active military, naval, or air service'' has the 
    meaning given such term by section 101(24) of such title.
    (g) Allocation of Funds.--Any amount otherwise available for fiscal 
year 1997, 1998, or 1999 to carry out section 4102A(b)(5) of title 38, 
United States Code, with respect to a State designated by the Secretary 
of Labor pursuant to subsection (d) shall be available to carry out the 
pilot program during that fiscal year with respect to that State.
    (h) Expiration Date.--The authority to carry out the pilot program 
under this section shall expire on October 1, 1999.

  Subtitle B--Technical Amendments Relating to the Uniformed Services 
             Employment and Reemployment Rights Act of 1994

    SEC. 311. AMENDMENTS TO CHAPTER 43 OF TITLE 38, UNITED STATES CODE.
    Chapter 43 is amended as follows:
        (1) Section 4301(a)(2) is amended by striking out ``under 
    honorable conditions''.
        (2) Section 4303(16) is amended by inserting ``national'' 
    before ``emergency''.
        (3) Section 4311 is amended by striking out subsections (b) and 
    (c) and inserting in lieu thereof the following:
    ``(b) An employer may not discriminate in employment against or 
take any adverse employment action against any person because such 
person (1) has taken an action to enforce a protection afforded any 
person under this chapter, (2) has testified or otherwise made a 
statement in or in connection with any proceeding under this chapter, 
(3) has assisted or otherwise participated in an investigation under 
this chapter, or (4) has exercised a right provided for in this 
chapter. The prohibition in this subsection shall apply with respect to 
a person regardless of whether that person has performed service in the 
uniformed services.
    ``(c) An employer shall be considered to have engaged in actions 
prohibited--
        ``(1) under subsection (a), if the person's membership, 
    application for membership, service, application for service, or 
    obligation for service in the uniformed services is a motivating 
    factor in the employer's action, unless the employer can prove that 
    the action would have been taken in the absence of such membership, 
    application for membership, service, application for service, or 
    obligation for service; or
        ``(2) under subsection (b), if the person's (A) action to 
    enforce a protection afforded any person under this chapter, (B) 
    testimony or making of a statement in or in connection with any 
    proceeding under this chapter, (C) assistance or other 
    participation in an investigation under this chapter, or (D) 
    exercise of a right provided for in this chapter, is a motivating 
    factor in the employer's action, unless the employer can prove that 
    the action would have been taken in the absence of such person's 
    enforcement action, testimony, statement, assistance, 
    participation, or exercise of a right.
    ``(d) The prohibitions in subsections (a) and (b) shall apply to 
any position of employment, including a position that is described in 
section 4312(d)(1)(C) of this title.''.
        (4) Section 4312 is amended--
            (A) in subsection (a), by striking out ``who is absent from 
        a position of employment'' and inserting in lieu thereof 
        ``whose absence from a position of employment is 
        necessitated'';
            (B) in subsection (c)--
                (i) by striking out ``section 270'' in paragraph (3) 
            and inserting in lieu thereof ``section 10147''; and
                (ii) in paragraph (4)--

                    (I) by striking out ``section 672(a), 672(g), 673, 
                673b, 673c, or 688'' in subparagraph (A) and inserting 
                in lieu thereof ``section 688, 12301(a), 12301(g), 
                12302, 12304, or 12305'';
                    (II) by amending subparagraph (B) to read as 
                follows:

            ``(B) ordered to or retained on active duty (other than for 
        training) under any provision of law because of a war or 
        national emergency declared by the President or the Congress, 
        as determined by the Secretary concerned;'';

                    (III) by striking out ``section 673b'' in 
                subparagraph (C) and inserting in lieu thereof 
                ``section 12304''; and
                    (IV) by striking out ``section 3500 or 8500'' in 
                subparagraph (E) and inserting in lieu thereof 
                ``section 12406''; and

            (C) in subsection (d)(2)(C), by striking out ``is brief or 
        for a nonrecurrent period and without a reasonable 
        expectation'' and inserting in lieu thereof ``is for a brief, 
        nonrecurrent period and there is no reasonable expectation''.
        (5) Section 4313(a)(4) is amended--
            (A) by striking out ``uniform services'' in subparagraph 
        (A)(ii) and inserting in lieu thereof ``uniformed services''; 
        and
            (B) by striking out ``of lesser status and pay which'' and 
        inserting in lieu thereof ``which is the nearest approximation 
        to a position referred to first in clause (A)(i) and then in 
        clause (A)(ii) which''.
        (6) Section 4316(d) is amended by adding at the end the 
    following new sentence: ``No employer may require any such person 
    to use vacation, annual, or similar leave during such period of 
    service.''.
        (7) Section 4317(a) is amended--
            (A) by striking out ``(a)(1)(A) Subject to paragraphs (2) 
        and (3), in'' and inserting in lieu thereof ``(a)(1) In'';
            (B) by redesignating clauses (i) and (ii) of paragraph (1) 
        (as amended by subparagraph (A) of this paragraph) as 
        subparagraphs (A) and (B), respectively;
            (C) by redesignating subparagraph (B) as paragraph (2); and
            (D) by redesignating subparagraph (C) as paragraph (3), and 
        in that paragraph by redesignating clauses (i) and (ii) as 
        subparagraphs (A) and (B), respectively, and by redesignating 
        subclauses (I) and (II) as clauses (i) and (ii), respectively.
        (8) The last sentence of section 4318(b)(2) is amended by 
    striking out ``services,'' and inserting in lieu thereof 
    ``services, such payment period''.
        (9) Section 4322 is amended--
            (A) in the second sentence of subsection (d) by inserting 
        ``attempt to'' before ``resolve''; and
            (B) in subsection (e)--
                (i) in the matter preceding paragraph (1), by striking 
            out ``with respect to a complaint under subsection (d) are 
            unsuccessful,'' and inserting in lieu thereof ``with 
            respect to any complaint filed under subsection (a) do not 
            resolve the complaint,''; and
                (ii) in paragraph (2), by inserting ``or the Office of 
            Personnel Management'' after ``Federal executive agency''.
        (10) Section 4323(a) is amended--
            (A) in paragraph (1), by striking out ``of an unsuccessful 
        effort to resolve a complaint''; and
            (B) in paragraph (2)(A), by striking out ``regarding the 
        complaint under section 4322(c)'' and inserting in lieu thereof 
        ``under section 4322(a)''.
        (11) Section 4324 is amended--
            (A) in subsection (a)(1), by striking out ``of an 
        unsuccessful effort to resolve a complaint relating to a 
        Federal executive agency'';
            (B) in subsection (b)--
                (i) in the matter preceding paragraph (1), by inserting 
            ``or the Office of Personnel Management'' after ``Federal 
            executive agency''; and
                (ii) in paragraph (1), by striking out ``regarding a 
            complaint under section 4322(c)'' and inserting in lieu 
            thereof ``under section 4322(a)''; and
            (C) in subsection (c)(2)--
                (i) by inserting ``or the Office of Personnel 
            Management'' after ``Federal executive agency''; and
                (ii) by striking out ``employee'' and inserting in lieu 
            thereof ``Office''.
        (12) Section 4325(d)(1) is amended--
            (A) by striking out ``, alternative employment in the 
        Federal Government under this chapter,''; and
            (B) by striking out ``employee'' the last place it appears 
        and inserting in lieu thereof ``employees''.
        (13) Section 4326(a) is amended by inserting ``have reasonable 
    access to and the right to interview persons with information 
    relevant to the investigation and shall'' after ``at all reasonable 
    times,''.
    SEC. 312. AMENDMENTS TO TRANSITION RULES AND EFFECTIVE DATES.
    (a) Reemployment.--Section 8(a) of the Uniformed Services 
Employment and Reemployment Rights Act of 1994 (Public Law 103-353; 108 
Stat. 3175; 38 U.S.C. 4301 note) is amended--
        (1) in paragraph (3), by adding at the end thereof the 
    following: ``Any service begun up to 60 days after the date of the 
    enactment of this Act, which is served up to 60 days after the date 
    of the enactment of this Act pursuant to orders issued under 
    section 502(f) of title 32, United States Code, shall be considered 
    under chapter 43 of title 38, United States Code, as in effect on 
    the day before such date of enactment. Any service pursuant to 
    orders issued under such section 502(f) served after 60 days after 
    the date of the enactment of this Act, regardless of when begun, 
    shall be considered under the amendments made by this Act.''; and
        (2) in paragraph (4), by striking out ``such period'' and 
    inserting in lieu thereof ``such 60-day period''.
    (b) Insurance.--Section 8(c)(2) of such Act is amended by striking 
out ``person on active duty'' and inserting in lieu thereof ``person 
serving a period of service in the uniformed services''.

SEC. 313. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this subtitle shall take effect as of October 13, 
1994.
    (b) Reorganized Title 10 References.--The amendments made by clause 
(i), and subclauses (I), (III), and (IV) of clause (ii), of section 
311(4)(B) shall take effect as of December 1, 1994.

               TITLE IV--VETERANS LIFE INSURANCE PROGRAMS

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Veterans' Insurance Reform Act of 
1996''.
    SEC. 402. MERGER OF RETIRED RESERVE SERVICEMEMBERS' GROUP LIFE 
      INSURANCE AND VETERANS' GROUP LIFE INSURANCE AND EXTENSION OF 
      VETERANS' GROUP LIFE INSURANCE TO MEMBERS OF THE READY RESERVE.
    (a) Definitions.--Section 1965(5) is amended--
        (1) by adding ``and'' at the end of subparagraph (B);
        (2) by striking out subparagraphs (C) and (D); and
        (3) by redesignating subparagraph (E) as subparagraph (C).
    (b) Persons Insured.--Section 1967 is amended--
        (1) in subsection (a)--
            (A) by inserting ``and'' at the end of paragraph (1);
            (B) by striking out paragraphs (3) and (4); and
            (C) in the matter following paragraph (2), by striking out 
        ``or the first day a member of the Reserves, whether or not 
        assigned to the Retired Reserve of a uniformed service, meets 
        the qualifications of section 1965(5)(C) of this title, or the 
        first day a member of the Reserves meets the qualifications of 
        section 1965(5)(D) of this title,''; and
        (2) by striking out subsection (d).
    (c) Duration and Termination of Coverage.--Section 1968 is 
amended--
        (1) in subsection (a)--
            (A) by striking out ``subparagraph (B), (C), or (D) of 
        section 1965(5)'' in the matter preceding paragraph (1) and 
        inserting in lieu thereof ``section 1965(5)(B)'';
            (B) by striking out the period at the end of paragraphs (1) 
        and (2) and inserting in lieu thereof a semicolon;
            (C) by striking out the period at the end of paragraph (3) 
        and inserting in lieu thereof ``; and'';
            (D) in paragraph (4)--
                (i) by striking out ``one hundred and twenty days 
            after'' in the matter preceding subparagraph (A) and all 
            that follows through ``(A) unless on'' and inserting in 
            lieu thereof ``120 days after separation or release from 
            such assignment, unless on'';
                (ii) by striking out ``prior to the expiration of one 
            hundred and twenty days'' and inserting in lieu thereof 
            ``before the end of 120 days'';
                (iii) by striking out the semicolon after ``such 
            assignment'' and inserting in lieu thereof a period; and
                (iv) by striking out subparagraphs (B) and (C); and
            (E) by striking out paragraphs (5) and (6); and
        (2) in subsection (b), by striking out the last two sentences.
    (d) Deductions.--Section 1969 is amended--
        (1) in subsection (a)(2), by striking out ``is assigned to the 
    Reserve (other than the Retired Reserve)'' and all that follows 
    through ``section 1965(5)(D) of this title,'';
        (2) by striking out subsection (e); and
        (3) by redesignating subsections (f) and (g) as subsections (e) 
    and (f), respectively.
    (e) Conversion of SGLI to VGLI.--The Servicemembers' Group Life 
Insurance of any member of the Retired Reserve of a uniformed service 
shall be converted to Veterans' Group Life Insurance effective 90 days 
after the date of the enactment of this Act.
    SEC. 403. CONVERSION OF SGLI AND VGLI TO COMMERCIAL LIFE INSURANCE 
      POLICY.
    (a) Option to Convert SGLI.--Subsection (b) of section 1968, as 
amended by section 402(c)(2), is amended--
        (1) by inserting ``(1)'' after ``(b)'' at the beginning of the 
    subsection;
        (2) by striking out ``would cease,'' in the first sentence and 
    all that follows through the period at the end of the sentence and 
    inserting in lieu thereof ``would cease--
        ``(A) shall be automatically converted to Veterans' Group Life 
    Insurance, subject to (i) the timely payment of the initial premium 
    under terms prescribed by the Secretary, and (ii) the terms and 
    conditions set forth in section 1977 of this title; or
        ``(B) at the election of the member, shall be converted to an 
    individual policy of insurance as described in section 1977(e) of 
    this title upon written application for conversion made to the 
    participating company selected by the member and payment of the 
    required premiums.''; and
        (3) by designating the second sentence as paragraph (2) and in 
    that sentence striking out ``Such automatic conversion'' and 
    inserting in lieu thereof ``Automatic conversion to Veterans' Group 
    Life Insurance under paragraph (1)''.
    (b) VGLI Conversion.--Section 1977 is amended--
        (1) in subsection (a)--
            (A) by inserting ``(1)'' after ``(a)'';
            (B) by striking out the last two sentences; and
            (C) by adding at the end the following:
    ``(2) If any person insured under Veterans' Group Life Insurance 
again becomes insured under Servicemembers' Group Life Insurance but 
dies before terminating or converting such person's Veterans' Group 
Insurance, Veterans' Group Life Insurance shall be payable only if such 
person is insured for less than $200,000 under Servicemembers' Group 
Life Insurance, and then only in an amount which, when added to the 
amount of Servicemembers' Group Life Insurance payable, does not exceed 
$200,000.''; and
        (2) in subsection (e)--
            (A) in the first sentence, by inserting ``at any time'' 
        after ``shall have the right''; and
            (B) by striking out the third sentence and inserting in 
        lieu thereof the following: ``The Veterans' Group Life 
        Insurance policy converted to an individual policy under this 
        subsection shall terminate on the day before the date on which 
        the individual policy becomes effective.''.
    SEC. 404. INFORMATION TO BE PROVIDED MEMBERS CONCERNING AUTOMATIC 
      MAXIMUM COVERAGE OF $200,000 UNDER SERVICEMEN'S GROUP LIFE 
      INSURANCE.
    Section 1967, as amended by section 402(b), is further amended by 
inserting after subsection (c) the following new subsection (d):
    ``(d) Whenever a member has the opportunity to make an election 
under subsection (a) not to be insured under this subchapter, or to be 
insured under this subchapter in an amount less than the maximum amount 
of $200,000, and at such other times periodically thereafter as the 
Secretary concerned considers appropriate, the Secretary concerned 
shall furnish to the member general information concerning life 
insurance. Such information shall include--
        ``(1) the purpose and role of life insurance in financial 
    planning;
        ``(2) the difference between term life insurance and whole life 
    insurance;
        ``(3) the availability of commercial life insurance; and
        ``(4) the relationship between Servicemembers' Group Life 
    Insurance and Veterans' Group Life Insurance.''.
    SEC. 405. RENAMING OF SERVICEMEN'S GROUP LIFE INSURANCE PROGRAM.
    (a) In General.--The program of insurance operated by the Secretary 
of Veterans Affairs under subchapter III of chapter 19 of title 38, 
United States Code, is hereby redesignated as the Servicemembers' Group 
Life Insurance program.
    (b) Amendments to Chapter 19.-- Chapter 19 is amended as follows:
        (1) The following provisions are amended by striking out 
    ``Servicemen's Group Life Insurance'' each place it appears and 
    inserting in lieu thereof ``Servicemembers' Group Life Insurance'':
            (A) Subsections (a), (c), and (e) of section 1967.
            (B) Section 1968(b).
            (C) Subsections (a) through (d) of section 1969.
            (D) Subsections (a), (f), and (g) of section 1970.
            (E) Section 1971(b).
            (F) Section 1973.
            (G) The first sentence of section 1974(a).
            (H) Subsections (a), (d), and (g) of section 1977.
        (2)(A) The heading of subchapter III is amended to read as 
    follows:

       ``SUBCHAPTER III--SERVICEMEMBERS' GROUP LIFE INSURANCE''.

        (B) The heading of section 1974 is amended to read as follows:

``Sec. 1974. Advisory Council on Servicemembers' Group Life 
            Insurance''.

        (3) The table of sections at the beginning of the chapter is 
    amended--
            (A) by striking out the item relating to subchapter III and 
        inserting in lieu thereof the following:


         ``subchapter iii--servicemembers' group life insurance'';

        and
            (B) by striking out the item relating to section 1974 and 
        inserting in lieu thereof the following:
``1974. Advisory Council on Servicemembers' Group Life Insurance.''.

    (c) Other Conforming Amendments.--(1) Section 1315(f)(1)(F) is 
amended by striking out ``servicemen's'' the first place it appears and 
inserting in lieu thereof ``servicemembers'''.
    (2) Sections 3017(a)(2)(A)(i) and 3224(1) are amended by striking 
out ``Servicemen's'' each place it appears and inserting in lieu 
thereof ``Servicemembers'''.
    (d) References.--Any reference to Servicemen's Group Life Insurance 
or to the Advisory Council on Servicemen's Group Life Insurance in any 
Federal law, Executive order, regulation, delegation of authority, or 
other document of the Federal Government shall be deemed to refer to 
Servicemembers' Group Life Insurance or the Advisory Council on 
Servicemembers' Group Life Insurance, respectively.

SEC. 406. TECHNICAL AMENDMENT.

    Section 1977(a) is amended by striking out ``and (e)'' in the first 
and second sentences.

     TITLE V--DEPARTMENT OF VETERANS AFFAIRS ADMINISTRATIVE MATTERS

    SEC. 501. REVISION OF AUTHORITY RELATING TO CENTERS FOR MINORITY 
      VETERANS AND WOMEN VETERANS.
    (a) SES Status of Directors.--Sections 317(b) and 318(b) are each 
amended by inserting ``career or'' before ``noncareer''.
    (b) Additional Functions of Center for Minority Veterans.--Section 
317(d) is amended--
        (1) by redesignating paragraph (10) as paragraph (12); and
        (2) by inserting after paragraph (9) the following new 
    paragraphs (10) and (11):
        ``(10) Advise the Secretary and other appropriate officials on 
    the effectiveness of the Department's efforts to accomplish the 
    goals of section 492B of the Public Health Service Act (42 U.S.C. 
    289a-2) with respect to the inclusion of minorities in clinical 
    research and on particular health conditions affecting the health 
    of members of minority groups which should be studied as part of 
    the Department's medical research program and promote cooperation 
    between the Department and other sponsors of medical research of 
    potential benefit to veterans who are minorities.
        ``(11) Provide support and administrative services to the 
    Advisory Committee on Minority Veterans provided for under section 
    544 of this title.''.
    (c) Definition of Minority Veterans.--Section 317 is amended by 
adding at the end the following:
    ``(g) In this section--
        ``(1) The term `veterans who are minorities' means veterans who 
    are minority group members.
        ``(2) The term `minority group member' has the meaning given 
    such term in section 544(d) of this title.''.
    (d) Clarification of Functions of Center for Women Veterans.--
Section 318(d)(10) is amended by striking out ``(relating to'' and all 
that follows through ``and of'' and inserting in lieu thereof ``(42 
U.S.C. 289a-2) with respect to the inclusion of women in clinical 
research and on''.
    (e) Additional Functions of Advisory Committees.--(1) Section 
542(b) is amended by inserting ``, including the Center for Women 
Veterans'' before the period at the end.
    (2) Section 544(b) is amended by inserting ``, including the Center 
for Minority Veterans'' before the period at the end.
    (f) Termination Date of Advisory Committee on Minority Veterans.--
Section 544(e) is amended by striking out ``December 31, 1997'' and 
inserting in lieu thereof ``December 31, 1999''.
    SEC. 502. LIMITATION ON CLOTHING ALLOWANCE FOR INCARCERATED 
      VETERANS.
    (a) Pro Rata Reduction.--Chapter 53 is amended by inserting after 
section 5313 the following new section:

``Sec. 5313A. Limitation on payment of clothing allowance to 
            incarcerated veterans

    ``In the case of a veteran who is incarcerated in a Federal, State, 
or local penal institution for a period in excess of 60 days and who is 
furnished clothing without charge by the institution, the amount of any 
annual clothing allowance payable to the veteran under section 1162 of 
this title shall be reduced by an amount equal to \1/365\ of the amount 
of the allowance otherwise payable under that section for each day on 
which the veteran was so incarcerated during the 12-month period 
preceding the date on which payment of the allowance would be due. This 
section shall be carried out under regulations prescribed by the 
Secretary.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
5313 the following new item:
``5313A. Limitation on payment of clothing allowance to incarcerated 
          veterans.''.
    SEC. 503. EXTENSION OF VETERANS' CLAIMS ADJUDICATION COMMISSION.
    (a) Extension of Time for Submission of Final Report.--Section 
402(e)(2) of the Veterans' Benefits Improvements Act of 1994 (Public 
Law 103-446; 108 Stat. 4661) is amended by striking out ``Not later 
than 18 months after such date'' and inserting in lieu thereof ``Not 
later than December 31, 1996''.
    (b) Funding.--From amounts appropriated to the Department of 
Veterans Affairs for each of fiscal years 1996 and 1997 for the payment 
of compensation and pension, the amount of $75,000 is hereby made 
available for the activities of the Veterans' Claims Adjudication 
Commission under title IV of the Veterans' Benefits Improvements Act of 
1994 (Public Law 103-446; 108 Stat. 4659; 38 U.S.C. 5101 note).
    SEC. 504. PILOT PROGRAM FOR USE OF CONTRACT PHYSICIANS FOR 
      DISABILITY EXAMINATIONS.
    (a) Authority.--The Secretary of Veterans Affairs, acting through 
the Under Secretary for Benefits, may conduct a pilot program under 
this section under which examinations with respect to medical 
disability of applicants for benefits under laws administered by the 
Secretary that are carried out through the Under Secretary for Benefits 
may be made by persons other than employees of the Department of 
Veterans Affairs. Any such examination shall be performed pursuant to 
contracts entered into by the Under Secretary for Benefits with those 
persons.
    (b) Limitation.--The Secretary may carry out the pilot program 
under this section through not more than 10 regional offices of the 
Department of Veterans Affairs.
    (c) Source of Funds.--Payments for contracts under the pilot 
program under this section shall be made from amounts available to the 
Secretary of Veterans Affairs for payment of compensation and pensions.
    (d) Report to Congress.--Not later than three years after the date 
of the enactment of this Act, the Secretary shall submit to the 
Congress a report on the effect of the use of the authority provided by 
subsection (a) on the cost, timeliness, and thoroughness of medical 
disability examinations.
    SEC. 505. EXPANSION OF PERIOD OF VIETNAM ERA FOR CERTAIN VETERANS.
    (a) In General.--Paragraph (29) of section 101 is amended to read 
as follows:
    ``(29) The term `Vietnam era' means the following:
        ``(A) The period beginning on February 28, 1961, and ending on 
    May 7, 1975, in the case of a veteran who served in the Republic of 
    Vietnam during that period.
        ``(B) The period beginning on August 5, 1964, and ending on May 
    7, 1975, in all other cases.''.
    (b) Limited Expansion for Specific Compensation Purposes.--(1) 
Paragraphs (1)(B) and (3) of section 1116(a) are each amended by 
striking out ``during the Vietnam era'' and inserting in lieu thereof 
``during the period beginning on January 9, 1962, and ending on May 7, 
1975,''.
    (2) Paragraphs (1)(A), (2)(C), (2)(E), (2)(F), and (4) of such 
section are amended by striking out ``during the Vietnam era'' and 
inserting in lieu thereof ``during the period beginning on January 9, 
1962, and ending on May 7, 1975''.
    (c) Limited Expansion for Specific Health Care Purposes.--(1) The 
provision stipulated in paragraph (2) is amended--
        (A) in clause (i), by striking out ``during the Vietnam era,'' 
    and inserting in lieu thereof ``during the period beginning on 
    January 9, 1962, and ending on May 7, 1975,''; and
        (B) in clause (ii), by striking out ``such era'' and inserting 
    in lieu thereof ``such period''.
    (2) The provision referred to in paragraph (1)--
        (A) if the Veterans' Health Care Eligibility Reform Act of 1996 
    is enacted as a measure of the One Hundred Fourth Congress, is 
    paragraph (4)(A) of section 1710(e) of title 38, United States 
    Code, as added by section 102 of such Act; and
        (B) if such Act is not enacted as a measure of the One Hundred 
    Fourth Congress, is paragraph (1)(A) of section 1710(e) of such 
    title.
    (d) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1997. No benefit may be paid or provided by reason 
of such amendments for any period before such date.
    SEC. 506. PAYMENT OF BENEFIT TO SURVIVING SPOUSE FOR MONTH IN WHICH 
      VETERAN DIES.
    (a) Benefit for Month of Death.--Section 5310 is amended--
        (1) by inserting ``(a)'' before ``If, in accordance with''; and
        (2) by adding at the end the following:
    ``(b)(1) If the surviving spouse of a veteran who was in receipt of 
compensation or pension at the time of death is not entitled to death 
benefits under chapter 11, 13, or 15 of this title for the month in 
which the veteran's death occurs, that surviving spouse shall be 
entitled to a benefit for that month in the amount of benefits the 
veteran would have received under chapter 11 or 15 of this title for 
that month but for the death of the veteran.
    ``(2) If (notwithstanding section 5112(b)(1) of this title) a check 
or other payment is issued to, and in the name of, the deceased veteran 
as a benefit payment under chapter 11 or 15 of this title for the month 
in which death occurs, that check or other payment (A) shall be treated 
for all purposes as being payable to the surviving spouse, and (B) if 
that check or other payment is negotiated or deposited, shall be 
considered to be the benefit to which the surviving spouse is entitled 
under this paragraph. However, if such check or other payment is in an 
amount less than the amount of the benefit under paragraph (1), the 
unpaid amount shall be treated in the same manner as an accrued benefit 
under section 5121 of this title.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to the death of compensation and pension recipients 
occurring after December 31, 1996.
    SEC. 507. INCREASE IN PERIOD FOR WHICH ACCRUED BENEFITS PAYABLE.
    Subsection (a) of section 5121 is amended by striking out ``one 
year'' in the matter preceding paragraph (1) and inserting in lieu 
thereof ``two years''.
    SEC. 508. APPOINTMENT OF VETERANS SERVICE ORGANIZATIONS AS 
      CLAIMANTS' REPRESENTATIVES.
    (a) Power of Attorney Naming a Veterans Service Organization.--
Section 5902 is amended--
        (1) by redesignating subsection (c) as subsection (d); and
        (2) by inserting after subsection (b) the following new 
    subsection (c):
    ``(c)(1) Unless a claimant specifically indicates in a power of 
attorney filed with the Department a desire to appoint only a 
recognized representative of an organization listed in or approved 
under subsection (a), the Secretary may, for any purpose, treat the 
power of attorney naming such an organization, a specific office of 
such an organization, or a recognized representative of such an 
organization as the claimant's representative as an appointment of the 
entire organization as the claimant's representative.
    ``(2) Whenever the Secretary is required or permitted to notify a 
claimant's representative, and the claimant has named in a power of 
attorney an organization listed in or approved under subsection (a), a 
specific office of such an organization, or a recognized representative 
of such an organization without specifically indicating a desire to 
appoint only a recognized representative of the organization, the 
Secretary shall notify the organization at the address designated by 
the organization for the purpose of receiving the notification 
concerned.''.
    (b) Applicability.--The amendments made by this section apply to 
any power of attorney filed with the Department of Veterans Affairs, 
regardless of the date of its execution.
    SEC. 509. PROVISION OF COPIES OF BOARD OF VETERANS' APPEALS 
      DECISIONS.
    Subsection (e) of section 7104 is amended to read as follows:
    ``(e)(1) After reaching a decision on a case, the Board shall 
promptly mail a copy of its written decision to the claimant at the 
last known address of the claimant.
    ``(2) If the claimant has an authorized representative, the Board 
shall--
        ``(A) mail a copy of its written decision to the authorized 
    representative at the last known address of the authorized 
    representative; or
        ``(B) send a copy of its written decision to the authorized 
    representative by any means reasonably likely to provide the 
    authorized representative with a copy of the decision within the 
    same time a copy would be expected to reach the authorized 
    representative if sent by first-class mail.''.
    SEC. 510. LIMITATION ON RELOCATION OR REDUCTION IN STAFFING OF 
      CERTAIN ELEMENTS OF THE EDUCATION SERVICE OF THE VETERANS 
      BENEFITS ADMINISTRATION.
    No funds available to the Department of Veterans Affairs may be 
obligated or expended before January 1, 1998, to relocate any function 
of, or to reduce the number of personnel assigned to, any of the 
following elements of the Veterans Benefits Administration of the 
Department of Veterans Affairs:
        (1) The Office of Education Procedures Systems.
        (2) The Office of Education Operations.
        (3) The Office of Education Policy and Program Administration.

                        TITLE VI--OTHER MATTERS

    SEC. 601. EXTENSION OF CERTAIN AUTHORITIES FOR SERVICES FOR 
      HOMELESS VETERANS.
    (a) Authority for Community-Based Residential Care for Homeless 
Chronically Mentally Ill Veterans and Other Veterans.--Section 115(d) 
of the Veterans' Benefits and Services Act of 1988 (38 U.S.C. 1712 
note) is amended by striking out ``December 31, 1997'' and inserting in 
lieu thereof ``December 31, 1998''.
    (b) Authorizations of Appropriations for Homeless Veterans 
Reintegration Projects.--Section 738(e)(1) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11448(e)(1)) is amended by adding at 
the end the following:
        ``(E) $10,000,000 for fiscal year 1997.
        ``(F) $10,000,000 for fiscal year 1998.''.
    SEC. 602. REPAIR AND LONG-TERM MAINTENANCE OF WAR MEMORIALS.
    (a) Repair and Long-term Maintenance of War Memorials.--Section 
5(b)(2) of the Act entitled ``An Act for the creation of an American 
Battle Monuments Commission to erect suitable memorials commemorating 
the services of the American soldier in Europe, and for other 
purposes'', approved March 4, 1923 (36 U.S.C. 125(b)(2)), is amended--
        (1) by inserting ``(A)'' after ``(2)''; and
        (2) by adding at the end the following:
    ``(B) In assuming responsibility for a war memorial under paragraph 
(1), the Commission may enter into arrangements with the sponsors of 
the memorial to provide for the repair or long-term maintenance of the 
memorial. Any funds transferred to the Commission for the purpose of 
this subparagraph shall, in lieu of subparagraph (A), be deposited by 
the Commission in the fund established by paragraph (3).
    ``(3)(A) There is established in the Treasury a fund which shall be 
available to the Commission for expenses for the maintenance and repair 
of memorials with respect to which the Commission enters into 
arrangements under paragraph (2)(B). The fund shall consist of (i) 
amounts deposited, and interest and proceeds credited, under 
subparagraph (B), and (ii) obligations obtained under subparagraph (C).
    ``(B) The Commission shall deposit in the fund such amounts from 
private contributions as may be accepted under paragraph (2)(B). The 
Secretary of the Treasury shall credit to the fund the interest on, and 
the proceeds from sale or redemption of, obligations held in the fund.
    ``(C) The Secretary of the Treasury shall invest any portion of the 
fund that, as determined by the Commission, is not required to meet 
current expenses. Each investment shall be made in an interest bearing 
obligation of the United States or an obligation guaranteed as to 
principal and interest by the United States that, as determined by the 
Commission, has a maturity suitable for the fund.
    ``(D) The Commission shall separately account for all moneys 
deposited in and expended from the fund with respect to each war 
memorial for which an arrangement for the repair or long-term 
maintenance of the memorial is entered to under paragraph (2)(B).''.
    (b) Accounting Procedures Relating to Receipt and Expenditure of 
Contributions.--Such Act is further amended by adding at the end the 
following new section:
    ``Sec. 14. (a) The Commission shall have a system of financial 
controls to enable the Commission to comply with the requirements of 
subsection (b) and section 5(b)(3)(D).
    ``(b) The Commission shall--
        ``(1) by March 1 of each year (beginning with 1998)--
            ``(A) prepare a financial statement which covers all 
        accounts and associated activities of the Commission for the 
        preceding fiscal year and is consistent with the requirements 
        of section 3515 of title 31, United States Code; and
            ``(B) submit the financial statement, together with a 
        narrative summary, to the Committees on Veterans' Affairs of 
        the Senate and House of Representatives; and
        ``(2) obtain an audit by the Comptroller General of the United 
    States of each financial statement prepared under paragraph (1)(A), 
    which shall be conducted in accordance with applicable generally 
    accepted government auditing standards and shall be in lieu of any 
    audit otherwise required by law.
    ``(c) The Commission may not obligate, withdraw, or expend funds 
received as contributions before March 1, 1998.''.

    TITLE VII--COMMISSION ON SERVICEMEMBERS AND VETERANS TRANSITION 
                               ASSISTANCE

SEC. 701. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the Commission on Servicemembers and Veterans Transition Assistance 
(hereafter in this title referred to as the ``Commission'').
    (b) Membership.--(1) The Commission shall be composed of 12 members 
appointed from among private United States citizens with appropriate 
and diverse experiences, expertise, and historical perspectives on 
veterans, military, organizational, and management matters. The members 
shall be appointed as follows:
        (A) Four shall be appointed jointly by the chairman and ranking 
    minority member of the Committee on Veterans' Affairs of the House 
    of Representatives.
        (B) Four shall be appointed jointly by the chairman and ranking 
    minority member of the Committee on Veterans' Affairs of the 
    Senate.
        (C) Two shall be appointed jointly by the chairman and ranking 
    minority member of the Committee on National Security of the House 
    of Representatives.
        (D) Two shall be appointed jointly by the chairman and ranking 
    minority member of the Committee on Armed Services of the Senate.
    (2)(A) One member of the Commission appointed under each of 
subparagraphs (A) and (B) of paragraph (1) shall be a representative of 
a veterans service organization.
    (B) To the maximum extent practicable, the individuals appointed 
under paragraph (1) as members of the Commission shall be veterans.
    (C) Not more than seven of the members of the Commission may be 
members of the same political party.
    (3) In addition to the members appointed under paragraph (1), the 
following shall be nonvoting members of the Commission:
        (A) The Under Secretary for Benefits of the Department of 
    Veterans Affairs.
        (B) The Assistant Secretary of Defense for Force Management and 
    Personnel.
        (C) The Assistant Secretary of Labor for Veterans' Employment 
    and Training.
    (4) The appointments of members of the Commission shall, to the 
maximum extent practicable, be made after consultation with 
representatives of veterans service organizations.
    (5) The appointments of the members of the Commission shall be made 
not later than 45 days after the date of the enactment of this Act.
    (c) Period of Appointment; Vacancies.--Members shall be appointed 
for the life of the Commission. Any vacancy in the Commission shall not 
affect its powers, but shall be filled in the same manner as the 
original appointment.
    (d) Initial Meeting.--Not later than 30 days after the date on 
which all members of the Commission have been appointed under 
subsection (b)(1), the Commission shall hold its first meeting.
    (e) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number may hold hearings.
    (f) Chairman and Vice Chairman.--The Commission shall select a 
chairman and vice chairman from among its members.
    (g) Meetings.--The Commission shall meet at the call of the 
chairman of the Commission.
    (h) Panels.--The Commission may establish panels composed of less 
than the full membership of the Commission for the purpose of carrying 
out the Commission's duties. The actions of such panels shall be 
subject to the review and control of the Commission. Any findings and 
determinations made by such a panel shall not be considered the 
findings and determinations of the Commission unless approved by the 
Commission.
    (i) Authority of Individuals To Act for Commission.--Any member or 
agent of the Commission may, if authorized by the Commission, take any 
action which the Commission is authorized to take under this title.

SEC. 702. DUTIES OF COMMISSION.

    (a) In General.--The Commission shall--
        (1) review the adequacy and effectiveness of veterans 
    transition assistance and benefits programs in providing assistance 
    to members of the Armed Forces in making the transition and 
    adjustment to civilian life;
        (2) review the allocation under law of responsibility for the 
    administration of veterans transition assistance and benefits 
    programs among the various departments and agencies of the 
    Government and determine the feasibility and desirability of 
    consolidating such administration;
        (3) evaluate proposals for improving such programs, including 
    proposals for alternative means of providing services delivered by 
    such programs; and
        (4) make recommendations to Congress regarding the need for 
    improvements in such programs.
    (b) Review of Programs To Assist Members of the Armed Forces at 
Separation.--(1) While carrying out the general duties specified in 
subsection (a), the members of the Commission appointed under 
subparagraphs (C) and (D) of section 701(b)(1) and the member specified 
in subparagraph (B) of section 701(b)(3) shall review primarily the 
programs intended to assist members of the Armed Forces at the time of 
their separation from service in the Armed Forces, including programs 
designed to assist families of such members.
    (2) In carrying out the review, those members of the Commission 
shall determine the following:
        (A) The adequacy of the programs referred to in paragraph (1) 
    for their purposes.
        (B) The adequacy of the support of the Armed Forces for such 
    programs.
        (C) The adequacy of funding levels for such programs.
        (D) The effect, if any, of the existence of such programs on 
    military readiness.
        (E) The extent to which such programs provide members of the 
    Armed Forces with job-search skills.
        (F) The extent to which such programs prepare such members for 
    employment in the private sector and in the public sector.
        (G) The effectiveness of such programs in assisting such 
    members in finding employment in the public sector upon their 
    separation from service.
        (H) The ways in which such programs could be improved.
    (3) In carrying out the review, the Commission shall make use of 
previous studies which have been made of such programs.
    (c) Review of Programs To Assist Veterans.--(1) While carrying out 
the general duties specified in subsection (a), the members of the 
Commission appointed under subparagraphs (A) and (B) of section 
701(b)(1) and the members specified in subparagraphs (A) and (C) of 
section 701(b)(3) shall review the following programs:
        (A) Educational assistance programs.
        (B) Job counseling, job training, and job placement services 
    programs.
        (C) Rehabilitation and training programs.
        (D) Housing loan programs.
        (E) Small business loan and small business assistance programs.
        (F) Employment and employment training programs for employment 
    in the public sector and the private sector, including employer 
    training programs and union apprenticeship programs.
        (G) Government personnel policies (including veterans' 
    preference policies) and the enforcement of such policies.
        (H) Programs that prepare the families of members of the Armed 
    Forces for their transition from military life to civilian life and 
    facilitate that transition.
    (2) In carrying out the review, such members of the Commission 
shall determine the following:
        (A) The adequacy of the programs referred to in paragraph (1) 
    for their purposes.
        (B) The adequacy of the support of the Department of Veterans 
    Affairs for such programs.
        (C) The adequacy of funding levels for such programs.
        (D) The extent to which such programs provide veterans with 
    job-search skills.
        (E) The extent to which such programs prepare veterans for 
    employment in the private sector and in the public sector.
        (F) The effectiveness of such programs in assisting veterans in 
    finding employment in the public sector upon their separation from 
    service.
        (G) The ways in which such programs could be improved.
    (d) Reports.--(1) Not later than 90 days after the date on which 
all members of the Commission have been appointed under section 
701(b)(1), the Commission shall submit to the Committees on Veterans' 
Affairs and Armed Services of the Senate and the Committees on 
Veterans' Affairs and National Security of the House of Representatives 
a report setting forth a plan for the work of the Commission. The 
Commission shall develop the plan in consultation with the Secretary of 
Defense, the Secretary of Veterans Affairs, the Secretary of Labor, and 
the heads of other appropriate departments and agencies of the 
Government.
    (2)(A) Not later than 18 months after the date of the first meeting 
of the Commission, the Commission shall submit to the committees 
referred to in paragraph (1), and to the Secretary of Defense, the 
Secretary of Veterans Affairs, and the Secretary of Labor, a report 
setting forth the activities, findings, and recommendations of the 
Commission, including any recommendations for legislative action and 
administrative action as the Commission considers appropriate.
    (B) Not later than 90 days after receiving the report referred to 
in subparagraph (A), the Secretary of Defense, the Secretary of 
Veterans Affairs, and the Secretary of Labor shall jointly transmit the 
report to Congress, together with the Secretaries' comments on the 
report.

SEC. 703. POWERS OF COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out the 
purposes of this title.
    (b) Information From Federal Agencies.--The Commission may secure 
directly from the Department of Defense, the Department of Veterans 
Affairs, and any other department or agency of the Government such 
information as the Commission considers necessary to carry out its 
duties under this title. Upon request of the chairman of the 
Commission, the head of such department or agency shall furnish such 
information expeditiously to the Commission.

SEC. 704. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

    (a) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Government.
    (b) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.
    (c) Miscellaneous Administrative Support.--The Secretary of 
Defense, the Secretary of Veterans Affairs, and the Secretary of Labor 
shall, upon the request of the chairman of the Commission, furnish the 
Commission, on a reimbursable basis, any administrative and support 
services as the Commission may require.

SEC. 705. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Commission may be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which such member is engaged in performing the 
duties of the Commission.
    (b) Travel and Travel Expenses.--(1) Members and personnel of the 
Commission may travel on military aircraft, military vehicles, or other 
military conveyances when travel is necessary in the performance of a 
duty of the Commission except when the cost of commercial 
transportation is less expensive.
    (2) The members of the Commission may be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Commission.
    (c) Staff.--(1) The chairman of the Commission may, without regard 
to civil service laws and regulations, appoint and terminate an 
executive director and up to five additional staff members as may be 
necessary to enable the Commission to perform its duties. In appointing 
an individual as executive director, the chairman shall, to the maximum 
extent practicable, attempt to appoint an individual who is a veteran. 
The employment of an executive director shall be subject to 
confirmation by the Commission.
    (2) The chairman of the Commission may fix the compensation of the 
executive director and other personnel without regard to the provisions 
of chapter 51 and subchapter III of chapter 53 of title 5, United 
States Code, relating to classification of positions and General 
Schedule pay rates, except that the rate of pay for the executive 
director and other staff members may not exceed the rate payable for 
level V of the Executive Schedule under section 5316 of such title.
    (d) Detail of Government Employees.--Upon request of the chairman 
of the Commission, the head of any department or agency of the 
Government may detail, on a nonreimbursable basis, any personnel of the 
department or agency to the Commission to assist the Commission in 
carrying out its duties.
    (e) Procurement of Temporary and Intermittent Services.--The 
chairman of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level IV of the Executive Schedule 
under section 5316 of such title.

SEC. 706. TERMINATION OF COMMISSION.

    The Commission shall terminate 90 days after the date on which it 
submits its report under section 702(d)(2).

SEC. 707. DEFINITIONS.

    For the purposes of this title:
        (1) The term ``veterans transition assistance and benefits 
    program'' means any program of the Government the purpose of which 
    is--
            (A) to assist, by rehabilitation or other means, members of 
        the Armed Forces in readjusting or otherwise making the 
        transition to civilian life upon their separation from service 
        in the Armed Forces; or
            (B) to assist veterans in making the transition to civilian 
        life.
        (2) The term ``Armed Forces'' has the meaning given such term 
    in section 101(10) of title 38, United States Code.
        (3) The term ``veteran'' has the meaning given such term in 
    section 101(2) of title 38, United States Code.
        (4) The term ``veterans service organization'' means any 
    organization covered by section 5902(a) of title 38, United States 
    Code.

SEC. 708. FUNDING.

    (a) In General.--The Secretary of Defense shall, upon the request 
of the chairman of the Commission, make available to the Commission 
such amounts as the Commission may require to carry out its duties 
under this title. The Secretary shall make such amounts available from 
amounts appropriated for the Department of Defense, except that such 
amounts may not be from amounts appropriated for the transition 
assistance program (TAP), the Army career alumni program (ACAP), or any 
similar program.
    (b) Availability.--Any sums made available to the Commission under 
subsection (a) shall remain available, without fiscal year limitation, 
until the termination of the Commission.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.