[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 986 Reported in Senate (RS)]





                                                       Calendar No. 292

105th CONGRESS

  1st Session

                                 S. 986

                          [Report No. 105-153]

_______________________________________________________________________

                                 A BILL

To amend title 38, United States Code, to make certain improvements in 
 the housing loan programs for veterans and eligible persons, and for 
                            other purposes.

_______________________________________________________________________

                           November 10, 1997

        Reported with an amendment and an amendment to the title





                                                       Calendar No. 292
105th CONGRESS
  1st Session
                                 S. 986

                          [Report No. 105-153]

To amend title 38, United States Code, to make certain improvements in 
 the housing loan programs for veterans and eligible persons, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 7, 1997

Mr. Specter (by request) introduced the following bill; which was read 
        twice and referred to the Committee on Veterans' Affairs

                           November 10, 1997

  Reported by Mr. Specter, with an amendment and an amendment to the 
                                 title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
To amend title 38, United States Code, to make certain improvements in 
 the housing loan programs for veterans and eligible persons, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
              CODE.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Veterans' 
Housing Loan Improvements Act of 1997''.</DELETED>
<DELETED>    (b) References to Title 38.--Except as otherwise may be 
specifically provided, whenever in the 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.</DELETED>

<DELETED>SEC. 2. LOAN FEE.</DELETED>

<DELETED>    (a) Section 3729 is amended by striking out everything 
after the catchline, and inserting in lieu thereof:</DELETED>
<DELETED>    ``(a)(1) Except as provided in subsection (c) of this 
section, a fee shall be collected from each person obtaining a housing 
loan guaranteed, insured, or made under this chapter, and each person 
assuming a loan to which section 3714 of this title applies. Such a 
loan may not be guaranteed, insured, made, or assumed until the fee 
payable under this section has been remitted to the 
Secretary.</DELETED>
<DELETED>    ``(2) The fee may be included in the loan and paid from 
the proceeds thereof.</DELETED>
<DELETED>    ``(b)(1) The amount of the fee shall be determined from 
the table in subsection (d) of this section. The fee is expressed as a 
percentage of the total amount of the loan guaranteed, insured, or 
made, or, in the case of a loan assumption, the unpaid principal 
balance of the loan on the date of the transfer of the 
property.</DELETED>
<DELETED>    ``(2) Any reference to a section in the Type of Loan 
column in subsection (d) of this section refers to a section of this 
title.</DELETED>
<DELETED>    ``(3) For the purposes of this section:</DELETED>
        <DELETED>    ``(A) The term `Active Duty Veteran' means any 
        veteran eligible for the benefits of this chapter other than a 
        Reservist;</DELETED>
        <DELETED>    ``(B) The term `Reservist' means a veteran 
        described in section 3701(b)(5)(A);</DELETED>
        <DELETED>    ``(C) The term `Other Obligor' means a person who 
        is not a veteran, as defined by section 101 or other provision 
        of this chapter;</DELETED>
        <DELETED>    ``(D) The term `initial loan described in section 
        3710' means a loan obtained by a veteran pursuant to section 
        3710 of this title if the veteran has never obtained a loan 
        guaranteed under section 3710 or made under 3711;</DELETED>
        <DELETED>    ``(E) The term `subsequent loan described in 
        section 3710' means a loan obtained by a veteran pursuant to 
        section 3710 title if the veteran has previously obtained a 
        loan guaranteed under section 3710 or made under section 3711. 
        The term shall not refer to an interest rate reduction 
        refinancing loan;</DELETED>
        <DELETED>    ``(F) The term `interest rate reduction 
        refinancing loan' means a loan described in section 3710(a)(8), 
        3710(a)(9)(B)(i), 3710(a)(11), 3712(a)(1)(F) or 
        3762(h);</DELETED>
        <DELETED>    ``(G) The term `0-down' means a downpayment, if 
        any, of less than 5 percent of the total purchase price or 
        construction cost of the dwelling;</DELETED>
        <DELETED>    ``(H) The term `5-down' means a downpayment of at 
        least 5 percent but less than 10 percent of the total purchase 
        price of construction cost of the dwelling;</DELETED>
        <DELETED>    ``(I) The term `10-down' means a downpayment of 10 
        percent or more of the total purchase price or construction 
        cost of the dwelling;</DELETED>
<DELETED>    ``(c) A fee may not be collected under this section from a 
veteran who is receiving compensation (or who but for the receipt of 
retirement pay would be entitled to receive compensation) or from a 
surviving spouse of any veteran (including a person who died in the 
active military, naval, or air service) who died from a service-
connected disability.</DELETED>
<DELETED>    ``(d) The following table establishes the percentages of 
fees to be collected under this section:</DELETED>


                            ``Loan Fee Table                            
------------------------------------------------------------------------
                                  Active                                
        ``Type of Loan             Duty      Reservist   Other  Obligor 
                                  Veteran                               
------------------------------------------------------------------------
``Initial loan described in           2.00        2.75  Not Applicable  
 section 3710(a) to purchase                                            
 or construct a dwelling with                                           
 0-down, or any other initial                                           
 loan described in section                                              
 3710(a).                                                               
``Subsequent loan described in        3.00        3.00  Not Applicable  
 section 3710(a) to purchase                                            
 or construct a dwelling with                                           
 0-down, or any other                                                   
 subsequent loan described in                                           
 section 3710(a).                                                       
``Loan described in section           1.50        2.25  Not Applicable  
 3710(a) to purchase or                                                 
 construct a dwelling with 5-                                           
 down.                                                                  
``Loan described in section           1.25        2.00  Not Applicable  
 3710(a) to purchase or                                                 
 construct a dwelling with 10-                                          
 down.                                                                  
``Interest rate reduction             0.50        0.50  Not Applicable  
 refinancing loan.                                                      
``Direct loan made under              1.00        1.00  Not Applicable  
 section 3711.                                                          
``Manufactured home loan              1.00        1.00  Not Applicable  
 described in section 3712                                              
 (other than an interest rate                                           
 reduction refinancing loan).                                           
Loan to Native American               1.25        1.25  Not Applicable  
 veteran made under section                                             
 3762 (other than an interest                                           
 rate reduction refinancing                                             
 loan).                                                                 
``Assuming a loan to which            0.50        0.50  0.50            
 section 3714 applies.                                                  
``Loan made under section             2.25        2.25  2.25            
 3733(a).                                                               
------------------------------------------------------------------------


<DELETED>    ``(e) Notwithstanding subsection (d) of this section, the 
Secretary, by regulation, may prescribe a different percentage for the 
fee applicable to loans made under section 3733(a), if the Secretary 
finds a different amount is necessary so that the fee charged for such 
loans is consistent with the fees charged by other departments of the 
Government for similar loans available to the public, or if the 
Secretary determines that considerations of the market for properties 
sold by the Secretary necessitate a different fee.''.</DELETED>
<DELETED>    (b) This section applies to any loan closed after 
September 30, 1997.</DELETED>

<DELETED>SEC. 3. EXTENSION OF NO-BID FORMULA.</DELETED>

<DELETED>    Section 3732(c) is amended by striking out paragraph (11) 
in its entirety.</DELETED>

<DELETED>SEC. 4. ENHANCED VENDEE LOAN SALES.</DELETED>

<DELETED>    Section 3720(h) is amended by:</DELETED>
        <DELETED>    (1) striking out paragraph (2) in its entirety; 
        and</DELETED>
        <DELETED>    (2) striking out ``(h)(1)'' and inserting in lieu 
        thereof ``(h)''.</DELETED>

<DELETED>SEC. 5. REPEAL OF LOAN DEBT COLLECTION RESTRICTIONS.</DELETED>

<DELETED>    Subchapter III of chapter 37 is amended by striking out 
section 3726 in its entirety.</DELETED>

<DELETED>SEC. 6. ACCOUNT CONSOLIDATION.</DELETED>

<DELETED>    (a) Subchapter III of chapter 37 is amended by striking 
out sections 3723, 3724, and 3725 in their entirety.</DELETED>
<DELETED>    (b) Such subchapter is further amended by inserting after 
section 3721 the following new section:</DELETED>
<DELETED>``Sec. 3722. Veterans Housing Benefit Program Fund</DELETED>
<DELETED>    ``(a) There is hereby established in the Treasury of the 
United States a fund known as the Veterans Housing Benefit Program 
Fund.</DELETED>
<DELETED>    ``(b) The Veterans Housing Benefit Program Fund shall be 
available to the Secretary, without fiscal year limitation, for all 
housing loan operations under this chapter, consistent with the Federal 
Credit Reform Act of 1990.</DELETED>
<DELETED>    ``(c) There shall be deposited in the Veterans Housing 
Benefit Program Fund:</DELETED>
        <DELETED>    ``(1) All money as of September 30, 1997, in: (A) 
        the Direct Loan Revolving Fund established by section 513 of 
        the Servicemen's Readjustment Act of 1944; (B) the Department 
        of Veterans Affairs Loan Guaranty Revolving Fund established by 
        section 7(a) of Public Law 86-665; and (C) the Guaranty and 
        Indemnity Fund established by section 302(a)(1) of Public Law 
        101-237;</DELETED>
        <DELETED>    ``(2) All money hereafter appropriated for such 
        Fund;</DELETED>
        <DELETED>    ``(3) All fees collected by the Secretary on or 
        after October 1, 1997, pursuant to section 3729, or any other 
        provision of law or regulation established by the Secretary 
        imposing fees on persons or other entities participating in the 
        housing loan program under this chapter; and</DELETED>
        <DELETED>    ``(4) All other amounts received by the Secretary 
        on or after October 1, 1997, incident to housing loan 
        operations under this chapter including, but not limited to, 
        collections of principal and interest, proceeds from the sale, 
        rental, use, or other disposition of property acquired under 
        this chapter, proceeds from the sale of loans pursuant to 
        sections 3720(h) and 3733(a)(3), and penalties collected 
        pursuant to section 3710(g)(4)(B).</DELETED>
<DELETED>    ``(d) For purposes of this section, the term `housing 
loan' shall not include a loan made pursuant to subchapter V of this 
chapter.''.</DELETED>
<DELETED>    (c) The amendments made by this section shall take effect 
October 1, 1997.</DELETED>

<DELETED>SEC. 7. EXTENSION OF PILOT PROGRAM FOR DIRECT LOANS TO NATIVE 
              AMERICAN VETERANS.</DELETED>

<DELETED>    Section 3761(c) is amended by striking out ``1997''. and 
inserting in lieu thereof ``1999.''.</DELETED>

<DELETED>SEC. 8. CONFORMING AMENDMENTS.</DELETED>

<DELETED>    (a) Section 2106(e) is amended by striking out ``either 
the direct loan or loan guaranty revolving fund established by section 
3723 or 3724 of this title, respectively.'' and inserting in lieu 
thereof ``the Veterans Housing Benefit Program Fund established by 
section 3722 of this title.''.</DELETED>
<DELETED>    (b) Section 3703(e)(1) is amended by striking out 
``3729(c)(1)'' and inserting in lieu thereof ``3729(c)''.</DELETED>
<DELETED>    (c) Section 3711(k) is amended by striking out ``and 
section 3723 of this title'' both places it appears.</DELETED>
<DELETED>    (d) Section 3720 is amended by striking out subsection (e) 
in its entirety and inserting in lieu thereof--</DELETED>
<DELETED>    ``(e) [Repealed.]''.</DELETED>
<DELETED>    (e) Section 3727(c) is amended by striking out ``funds 
established pursuant to sections 3723 and 3724 of this title, as 
applicable.'' and inserting in lieu thereof ``fund established pursuant 
to section 3722 of this title.''.</DELETED>
<DELETED>    (f) Section 3733(a)(6) is amended by--</DELETED>
        <DELETED>    (1) striking out ``Department of Veterans Affairs 
        Loan Guaranty Revolving'' and inserting in lieu thereof 
        ``Veterans Housing Benefit Program''; and</DELETED>
        <DELETED>    (2) striking out ``3724(a)'' and inserting in lieu 
        thereof ``3722(a)''.</DELETED>
<DELETED>    (g) Section 3733 is further amended by striking out 
subsection (e) in its entirety.</DELETED>
<DELETED>    (h) Section 3734 is amended by--</DELETED>
        <DELETED>    (1) striking out, in the catchline, ``Loan 
        Guaranty Revolving Fund and the Guaranty and Indemnity'' and 
        inserting in lieu thereof ``Veterans Housing Benefit 
        Program'';</DELETED>
        <DELETED>    (2) striking out, in subsection (a)(1), ``Loan 
        Guaranty Revolving Fund and the Guaranty and Indemnity'' and 
        inserting in lieu thereof ``Veterans Housing Benefit 
        Program'';</DELETED>
        <DELETED>    (3) striking out, in subsection (a)(2) ``funds,'' 
        and inserting in lieu thereof ``fund,'';</DELETED>
        <DELETED>    (4) striking out, in subsection (b), ``each'' and 
        inserting in lieu thereof ``the''; and</DELETED>
        <DELETED>    (5) striking out, in paragraph (2) of subsection 
        (b), subparagraphs (B), (C), and (D) in their entirety, and 
        redesignating subparagraphs (E), (F), and (G) as (B), (C), and 
        (D), respectively.</DELETED>
<DELETED>    (i) Section 3735(a)(3)(A)(i) is amended by striking out 
``Loan Guaranty Revolving Fund and the Guaranty and Indemnity'' and 
inserting in lieu thereof ``Veterans Housing Benefit 
Program''.</DELETED>
<DELETED>    (j) The catchline for section 3763 is amended by striking 
out ``Housing'' and inserting in lieu thereof ``Native American veteran 
housing''.</DELETED>
<DELETED>    (k) The table of sections for subchapter III of chapter 37 
is amended by--</DELETED>
        <DELETED>    (1) striking out the items relating to sections 
        3722, 3723, 3724, 3725, and 3726 and inserting in lieu 
        thereof--</DELETED>
                <DELETED>    ``3722. Veterans Housing Benefit Program 
                Fund.</DELETED>
                <DELETED>    ``[3723.  Repealed.]</DELETED>
                <DELETED>    ``[3724.  Repealed.]</DELETED>
                <DELETED>    ``[3725.  Repealed.]</DELETED>
                <DELETED>    ``[3726.  Repealed.]'';</DELETED>
        <DELETED>    (2) striking out, in the item relating to section 
        3734, ``Loan Guaranty Revolving Fund and the Guaranty and 
        Indemnity'' and inserting in lieu thereof ``Veterans Housing 
        Benefit Program''; and</DELETED>
        <DELETED>    (3) inserting at the end thereof the following new 
        item:</DELETED>
        <DELETED>    ``3736. Portfolio Loan Servicing.''.</DELETED>
<DELETED>    (l) The table of sections for subchapter V of chapter 37 
is amended by striking out, in the term related to section 3763, 
``Housing'' and inserting in lieu thereof ``Native American veteran 
housing''.</DELETED>
<DELETED>    (m) Section 7(h)(2)(B) of Public Law 102-54, as amended 
(38 U.S.C. 1718 note), is amended by striking out ``Loan Guaranty 
Revolving'' and inserting in lieu thereof ``Veterans Housing Benefit 
Program''.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Veterans' Benefits 
Improvements Act of 1997''.
    (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--CODIFICATION OF COMPENSATION RATE INCREASES

Sec. 101. Short title.
Sec. 102. Disability compensation.
Sec. 103. Additional compensation for dependents.
Sec. 104. Clothing allowance for certain disabled veterans.
Sec. 105. Dependency and indemnity compensation for surviving spouses.
Sec. 106. Dependency and indemnity compensation for children.
Sec. 107. Effective date.

     TITLE II--AUTHORIZATIONS OF MAJOR MEDICAL PROJECTS AND LEASES

Sec. 201. Authorization of major medical facility project.
Sec. 202. Authorization of major medical facility leases.
Sec. 203. Authorization of appropriations.

                        TITLE III--OTHER MATTERS

          Subtitle A--Improvement of Housing Loan Authorities

Sec. 301. Consolidation of housing loan revolving funds.

           Subtitle B--Improvement of Health Care Authorities

Sec. 311. Reimbursement of costs associated with compensation and 
                            pension medical examinations.
Sec. 312. Clarification of certain health care authorities.

                   Subtitle C--State Cemetery Grants

Sec. 321. State cemetery grants program.

                       Subtitle D--Other Matters

Sec. 331. Limitation on special separation incentive recoupment from 
                            veterans compensation benefits.
Sec. 332. Report on preparations for a national response to medical 
                            emergencies arising from the terrorist use 
                            of weapons of mass destruction.
Sec. 333. Technical amendments.

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

    Whenever in this Act an amendment is expressed in terms of an 
amendment to 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--CODIFICATION OF COMPENSATION RATE INCREASES

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Veterans' Compensation Rate 
Increase Codification Act of 1997''.

SEC. 102. DISABILITY COMPENSATION.

    Section 1114 is amended--
            (1) by striking out ``$87'' in subsection (a) and inserting 
        in lieu thereof ``$94'';
            (2) by striking out ``$166'' in subsection (b) and 
        inserting in lieu thereof ``$179'';
            (3) by striking out ``$253'' in subsection (c) and 
        inserting in lieu thereof ``$274'';
            (4) by striking out ``$361'' in subsection (d) and 
        inserting in lieu thereof ``$391'';
            (5) by striking out ``$515'' in subsection (e) and 
        inserting in lieu thereof ``$558'';
            (6) by striking out ``$648'' in subsection (f) and 
        inserting in lieu thereof ``$703'';
            (7) by striking out ``$819'' in subsection (g) and 
        inserting in lieu thereof ``$887'';
            (8) by striking out ``$948'' in subsection (h) and 
        inserting in lieu thereof ``$1,028'';
            (9) by striking out ``$1,067'' in subsection (i) and 
        inserting in lieu thereof ``$1,157'';
            (10) by striking out ``$1,774'' in subsection (j) and 
        inserting in lieu thereof ``$1,924'';
            (11) in subsection (k)--
                    (A) by striking out ``$70'' both places it appears 
                and inserting in lieu thereof ``$74''; and
                    (B) by striking out ``$2,207'' and ``$3,093'' and 
                inserting in lieu thereof ``$2,393'' and ``$3,356'', 
                respectively;
            (12) by striking out ``$2,207'' in subsection (l) and 
        inserting in lieu thereof ``$2,393'';
            (13) by striking out ``$2,432'' in subsection (m) and 
        inserting in lieu thereof ``$2,639'';
            (14) by striking out ``$2,768'' in subsection (n) and 
        inserting in lieu thereof ``$3,003'';
            (15) by striking out ``$3,093'' each place it appears in 
        subsections (o) and (p) and inserting in lieu thereof 
        ``$3,356'';
            (16) by striking out ``$1,328'' and ``$1,978'' in 
        subsection (r) and inserting in lieu thereof ``$1,441'' and 
        ``$2,145'', respectively; ;and
            (17) by striking out ``$1,985'' in subsection (s) and 
        inserting in lieu thereof ``$2,154''.

SEC. 103. ADDITIONAL COMPENSATION FOR DEPENDENTS.

    Section 1115(1) is amended--
            (1) by striking out ``$105'' in clause (A) and inserting in 
        lieu thereof ``$112'';
            (2) by striking out ``$178'' and ``$55'' in clause (B) and 
        inserting in lieu thereof ``$191'' and ``$59'', respectively;
            (3) by striking out ``$72'' and ``$55'' in clause (C) and 
        inserting in lieu thereof ``$77'' and ``$59'', respectively;
            (4) by striking out ``$84'' in clause (D) and inserting in 
        lieu thereof ``$91'';
            (5) by striking out ``$195'' in clause (E) and inserting in 
        lieu thereof ``$211''; and
            (6) by striking out ``$164'' in clause (F) and inserting in 
        lieu thereof ``$177''.

SEC. 104. CLOTHING ALLOWANCE FOR CERTAIN DISABLED VETERANS.

    Section 1162 is amended by striking out ``$478'' and inserting in 
lieu thereof ``$518''.

SEC. 105. DEPENDENCY AND INDEMNITY COMPENSATION FOR SURVIVING SPOUSES.

    Section 1311 is amended--
            (1) in subsection (a)--
                    (A) by striking out ``$769'' in paragraph (1) and 
                inserting in lieu thereof ``$833'';
                    (B) by striking out ``$169'' in paragraph (2) and 
                inserting in lieu thereof ``$182''; and
                    (C) by striking out the table following paragraph 
                (3) and inserting in lieu thereof the following new 
                table:

``Pay grade                                       Monthly rate  Pay grade                           Monthly rate
E-7.........................................              $861    O-3.........................              $972
E-8.........................................               909    O-4.........................             1,028
E-9.........................................            \1\949    O-5.........................             1,132
W-1.........................................               880    O-6.........................             1,276
W-2.........................................               915    O-7.........................             1,378
W-3.........................................               943    O-8.........................             1,510
W-4.........................................               997    O-9.........................             1,618
O-1.........................................               880    O-10........................          \2\1,774
O-2.........................................              909.                                                  
                                                                                                                

    ``\1\If the veteran served as sergeant major of the Army, senior 
enlisted advisor of the Navy, chief master sergeant of the Air Force, 
sergeant major of the Marine Corps, or master chief petty officer of 
the Coast Guard, at the applicable time designated by section 1302 of 
this title, the surviving spouse's rate shall be $1,023.
    ``\2\If the veteran served as Chairman or Vice-Chairman of the 
Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval 
Operations, Chief of Staff of the Air Force, Commandant of the Marine 
Corps, or Commandant of the Coast Guard, at the applicable time 
designated by section 1302 of this title, the surviving spouse's rate 
shall be $1,902.'';
            (2) in subsection (b), by striking out ``$100 for each such 
        child'' and all that follows through ``thereafter'' and 
        inserting in lieu thereof ``$211 for each such child'';
            (3) in subsection (c), by striking out ``$195'' and 
        inserting in lieu thereof ``$211''; and
            (4) in subsection (d), by striking out ``$95'' and 
        inserting in lieu thereof ``$102''.

SEC. 106. DEPENDENCY AND INDEMNITY COMPENSATION FOR CHILDREN.

    (a) DIC for Orphan Children.--Section 1313(a) is amended--
            (1) by striking out ``$327'' in clause (1) and inserting in 
        lieu thereof ``$354'';
            (2) by striking out ``$471'' in clause (2) and inserting in 
        lieu thereof ``$510'';
            (3) by striking out ``$610'' in clause (3) and inserting in 
        lieu thereof ``$662''; and
            (4) by striking out ``$610'' and ``$120'' in clause (4) and 
        inserting in lieu thereof ``$662'' and ``$130'', respectively.
    (b) Supplemental DIC for Disabled Adult Children.--Section 1314 is 
amended--
            (1) by striking out ``$195'' in subsection (a) and 
        inserting in lieu thereof ``$211'';
            (2) by striking out ``$327'' in subsection (b) and 
        inserting in lieu thereof ``$354''; and
            (3) by striking out ``$166'' in subsection (c) and 
        inserting in lieu thereof ``$179''.

SEC. 107. EFFECTIVE DATE.

    The amendments made by this title shall take effect on December 1, 
1996.

     TITLE II--AUTHORIZATIONS OF MAJOR MEDICAL PROJECTS AND LEASES

SEC. 201. AUTHORIZATION OF MAJOR MEDICAL FACILITY PROJECT.

    (a) Authorization of Seismic Correction Project.--The Secretary of 
Veterans Affairs may carry out seismic corrections at the Department of 
Veterans Affairs medical center in Memphis, Tennessee, in the amount of 
$107,600,000.
    (b) Project Authorization When Partial Funding Provided.--If the 
amount of funds appropriated for fiscal year 1998 or 1999 for design 
and partial construction of the seismic corrections project authorized 
in subsection (a) is less than the amount required to complete the 
seismic corrections project as authorized and if the Secretary 
obligates funds for the seismic corrections project, the project shall 
be deemed to be fully authorized. The authorization shall cease to have 
effect at the end of fiscal year 2002.

SEC. 202. AUTHORIZATION OF MAJOR MEDICAL FACILITY LEASES.

    The Secretary of Veterans Affairs may enter into leases for medical 
facilities as follows:
            (1) Lease of an information resources management field 
        office, Birmingham, Alabama, in an amount not to exceed 
        $595,000.
            (2) Lease of a satellite outpatient clinic, Jacksonville, 
        Florida, in an amount not to exceed $3,095,000.
            (3) Lease of a satellite outpatient clinic, Boston, 
        Massachusetts, in an amount not to exceed $5,215,000.
            (4) Lease of a satellite outpatient clinic, Canton, Ohio, 
        in an amount not to exceed $735,000.
            (5) Lease of a satellite outpatient clinic, Tulsa, 
        Oklahoma, in an amount not to exceed $2,112,000.
            (6) Lease of a satellite outpatient clinic, Portland, 
        Oregon, in an amount not to exceed $1,919,000.
            (7) Lease of an information resources management field 
        office, Salt Lake City, Utah, in an amount not to exceed 
        $652,000.

SEC. 203. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Secretary of Veterans Affairs for fiscal year 1998 and fiscal year 
1999--
            (1) for the Construction, Major Projects, account, a total 
        of $34,600,000 for the project authorized in section 201; and
            (2) for the Medical Care account, a total of $14,323,000 
        for the leases authorized in section 202.
    (b) Limitation.--The project authorized in section 201 may only be 
carried out using--
            (1) funds appropriated for fiscal year 1998 or fiscal year 
        1999 consistent with the authorization of appropriations in 
        subsection (a);
            (2) funds appropriated for Construction, Major Projects for 
        a fiscal year before fiscal year 1998 that remain available for 
        obligation; and
            (3) funds appropriated for Construction, Major Projects for 
        fiscal year 1998 or fiscal year 1999 for a category of activity 
        not specific to a project.

                        TITLE III--OTHER MATTERS

          Subtitle A--Improvement of Housing Loan Authorities

SEC. 301. CONSOLIDATION OF HOUSING LOAN REVOLVING FUNDS.

    (a) In General.--Subchapter III of chapter 37 is amended by 
inserting after section 3721 the following new section:
``Sec. 3722. Veterans Housing Benefits Programs Fund
    ``(a) There is established on the books of the Treasury of the 
United States a fund to be known as the Veterans Housing Benefits 
Programs Fund (in this section referred to as the `Fund').
    ``(b) There shall be deposited in the Fund the following:
            ``(1) Any unobligated funds as of October 1, 1997, in the 
        direct loan revolving fund under section 3723 of this title.
            ``(2) Any unobligated funds as of October 1, 1997, in the 
        Department of Veterans Affairs Loan Guaranty Revolving Fund 
        established by section 3724 of this title.
            ``(3) Any unobligated funds as of October 1, 1997, in the 
        Guaranty and Indemnity Fund established by section 3725 of this 
        title.
            ``(4) Any amounts appropriated to the Fund.
            ``(5) Any fees collected by the Secretary after September 
        30, 1997, under section 3729 of this title, or under any other 
        provision of law or regulation prescribed by the Secretary that 
        imposes fees on persons participating in any housing loan 
        program under subchapter I, II, or III of this chapter.
            ``(6) Any other amounts collected or received by the 
        Secretary after September 30, 1997, as a result of activities 
        under the housing loan programs under subchapter I, II, or III 
        of this chapter, including--
                    ``(A) collections of principal and interest on 
                housing loans made by the Secretary under such 
                programs;
                    ``(B) proceeds from the sale, rental, use, or other 
                disposition of property acquired under such programs;
                    ``(C) proceeds from the sale of loans under section 
                3720(h) or 3733(a)(3) of this title; and
                    ``(D) penalties collected under section 
                3710(g)(4)(B) of this title.
    ``(d) Subject to the provisions of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661 et seq.), amounts in the Fund shall be available to 
the Secretary, without fiscal year limitation, for all housing loan 
operations and housing loan guaranty and insurance operations under 
subchapter I, II, or III of this chapter.''.
    (b) Conforming Repeals.--Sections 3723, 3724, and 3725 are 
repealed.
    (c) Conforming Amendments.--(1) Section 3711(k) is amended by 
striking out ``and section 3723 of this title'' each place it appears.
    (2) Section 3720(e)(2) is amended--
            (A) in the first sentence--
                    (i) by striking out ``proportionately allocate and 
                deposit'' and all that follows through ``as determined 
                on an estimated basis,'' and inserting in lieu thereof 
                ``deposit the entire proceeds received from the sale of 
                participations under this subsection into the Veterans 
                Housing Benefits Programs Fund established by section 
                3722 of this title''; and
                    (ii) by striking out ``the funds'' and inserting in 
                lieu thereof ``the fund''; and
            (B) in the last sentence, by striking out ``in the funds 
        established pursuant to sections 3723 and 3724 of this 
        chapter'' and inserting in lieu thereof ``the Veterans Housing 
        Benefits Programs Fund''.
    (3) Section 3733(a)(6) is amended by striking out ``the Department 
of Veterans Affairs Loan Guaranty Revolving Fund established by section 
3724(a)'' and inserting in lieu thereof ``the Veterans Housing Benefits 
Programs Fund established by section 3722''.
    (4)(A) Subsection (a)(1) of section 3734 is amended by striking out 
``the Loan Guaranty Revolving Fund and the Guaranty and Indemnity 
Fund'' and inserting in lieu thereof ``the Veterans Housing Benefits 
Programs Fund''.
    (B) The section heading of such section is amended by striking out 
``the Loan Guaranty Revolving Fund and the Guaranty and Indemnity 
Fund'' and inserting in lieu thereof ``the Veterans Housing Benefits 
Programs Fund''.
    (5) Section 3735(a)(3)(A)(i) is amended by striking out ``the Loan 
Guaranty Revolving Fund and the Guaranty and Indemnity Fund'' and 
inserting in lieu thereof ``the Veterans Housing Benefits Programs 
Fund''.
    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 37 is amended--
            (1) by striking out the items relating to sections 3723, 
        3724, and 3725 and inserting in lieu thereof the following:

``3722. Veterans Housing Benefits Programs Fund.''; and
            (2) in the item relating to section 3734, by striking out 
        ``the Loan Guaranty Revolving Fund and the Guaranty and 
        Indemnity Fund'' and inserting in lieu thereof ``the Veterans 
        Housing Benefits Programs Fund''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1997.

           Subtitle B--Improvement of Health Care Authorities

SEC. 311. REIMBURSEMENT OF COSTS ASSOCIATED WITH COMPENSATION AND 
              PENSION MEDICAL EXAMINATIONS.

    (a) Authorization.--Subchapter I of chapter 77 is amended by adding 
at the end the following new section:
``Sec. 7704. Reimbursement for compensation and pension medical 
              examinations
    ``(a) Reimbursement.--The Under Secretary for Benefits may 
reimburse the Under Secretary for Health for costs incurred by the 
Under Secretary of Health for the conduct of medical examinations 
requested by the Under Secretary for Benefits in connection with claims 
for benefits under this title.
    ``(b) Source of Funds.--Reimbursements under this section shall be 
made from amounts available to the Secretary for payment of general 
operating expenses.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 77 is amended by inserting after the item relating to section 
7703 the following new item:

``7704. Reimbursement for compensation and pension medical 
                            examinations.''.

SEC. 312. CLARIFICATION OF CERTAIN HEALTH CARE AUTHORITIES.

    (a) Eligibility for Hospital Care and Medical Services.--Section 
1710(a)(2)(B) is amended by striking out ``compensable''.
    (b) Home Health Services.--Section 1717(a) is amended--
            (1) in paragraph (1), by striking out ``veteran's 
        disability'' and inserting in lieu thereof ``veteran''; and
            (2) in paragraph (2)(B), by striking out ``section 
        1710(a)(2)'' and inserting in lieu thereof ``section 1710(a)''.
    (c) Authority To Transfer Veterans Receiving Outpatient Care to 
Non-Department Nursing Homes.--Section 1720(a)(1)(A)(i) is amended by 
striking out ``hospital care, nursing home care, or domiciliary care'' 
and inserting in lieu thereof ``care''.
    (d) Acquisition of Commercial Health Care Resources.--Section 
8153(a)(3)(A) is amended by inserting ``(including any Executive order, 
circular, or other administrative policy)'' after ``law or 
regulation''.
    (e) Competition in Procurement of Commercial Health Care 
Resources.--Section 8153(a)(3)(B)(ii) is amended in the second sentence 
by inserting ``, as appropriate,'' after ``all responsible sources''.
    (f) Arrangements for Care of Non-Veterans.--Section 8153(e)(1) is 
amended to read as follows:
            ``(1) that care to veterans will not be diminished as a 
        result of such an arrangement; and''.

                   Subtitle C--State Cemetery Grants

SEC. 321. STATE CEMETERY GRANTS PROGRAM.

    (a) Amount of Grants.--Section 2408(b) is amended by striking out 
paragraphs (1) and (2) and inserting in lieu thereof the following new 
paragraphs (1) and (2):
            ``(1) The amount of any grant under this section may not 
        exceed the following:
                    ``(A) In the case of a grant for the establishment 
                of a new cemetery, an amount equal to the total of--
                            ``(i) the cost of improvements to be made 
                        on the land to be acquired or dedicated for the 
                        cemetery; and
                            ``(ii) the initial cost of equipment 
                        necessary to operate the cemetery.
                    ``(B) In the case of a grant for the expansion or 
                improvement of an existing cemetery, an amount equal to 
                the total of--
                            ``(i) the cost of improvements to be made 
                        on any land to be added to the cemetery; and
                            ``(ii) the cost of any improvements to be 
                        made to the existing cemetery.
            ``(2) If the amount of a grant for a cemetery under this 
        section is less than the amount of the costs with respect to 
        the cemetery described in the applicable subparagraph of 
        paragraph (1) of this subsection, the State receiving the grant 
        shall contribute the amount by which such costs exceed the 
        amount of the grant less the value of any land acquired or 
        dedicated by the State for the cemetery.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 60 days after the date of enactment of this Act.

                       Subtitle D--Other Matters

SEC. 331. LIMITATION ON SPECIAL SEPARATION INCENTIVE RECOUPMENT FROM 
              VETERANS COMPENSATION BENEFITS.

    (a) In General.--(1) Chapter 53 is amended by inserting after 
section 5304 the following new section:
``Sec. 5304A. Recoupment of special separation benefits from 
              compensation: limitation
    ``In the case of a veteran with a service-connected disability who 
is entitled to compensation and who is paid special separation benefits 
under section 1174a of title 10, the amount of compensation otherwise 
payable to that veteran that is deducted pursuant to section 1174a(g) 
of title 10 by reason of the payment to that veteran of such benefits 
may not exceed 75 percent of the total amount of the benefits paid to 
the veteran.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``5304A. Recoupment of special separation benefits from compensation: 
                            limitation.''.
    (b) Effective Date.--Section 5304A of title 38, United States Code, 
as added by subsection (a), shall apply with respect to payment of 
compensation by the Secretary of Veterans Affairs for months beginning 
after December 5, 1991.

SEC. 332. REPORT ON PREPARATIONS FOR A NATIONAL RESPONSE TO MEDICAL 
              EMERGENCIES ARISING FROM THE TERRORIST USE OF WEAPONS OF 
              MASS DESTRUCTION.

    (a) Findings.--Congress makes the following findings:
            (1) There is a need for improved coordination among the 
        departments and agencies of the Federal Government in planning 
        and carrying out a national response to medical emergencies 
        arising from the terrorist use of weapons of mass destruction.
            (2) All departments and agencies of the Federal Government 
        which would be called upon to respond to such emergencies need 
        to be involved in planning such response.
            (3) The Federal Government needs a comprehensive plan to 
        ensure the establishment and maintenance within the emergency 
        response elements of the Federal Government and State and local 
        governments of a reliable and efficient capability to provide 
        training to, and evaluation of, emergency response personnel 
        and facilities in responding to such medical emergencies.
    (b) Report.--(1) Not later than March 1, 1998, the President shall 
submit to Congress a report on the plans, preparations, and capability 
of the Federal Government and State and local governments for a 
national response to medical emergencies arising from the terrorist use 
of weapons of mass destruction. The report shall be submitted in 
unclassified form, but may include a classified annex.
    (2) The report should be prepared in consultation with the 
Secretary of Defense, the Secretary of Health and Human Services, the 
Secretary of Veterans Affairs, the Director of the Federal Emergency 
Management Agency, and the heads of any other departments and agencies 
of the Federal Government that will be involved in responding to such 
emergencies. The President shall designate a lead agency for purposes 
of the preparation of the report.
    (c) Contents.--The report shall include the following:
            (1) A description of the steps taken by the Federal 
        Government to plan and prepare for a national response to 
        medical emergencies arising from the terrorist use of weapons 
        of mass destruction.
            (2) A description of the laws and agreements governing the 
        responsibilities of the various departments and agencies of the 
        Federal Government, and of State and local governments, for the 
        response to such emergencies, and an assessment of the 
        interrelationship of such responsibilities under such laws and 
        agreements.
            (3) Recommendations, if any, for the simplification or 
        improvement of such responsibilities.
            (4) An assessment of the current level of preparedness for 
        such response of all departments and agencies of the Federal 
        Government and State and local governments that are responsible 
        for such response.
            (5) A current inventory of the existing medical assets from 
        all sources which can be made available for such response.
            (6) Recommendations, if any, for the improved or enhanced 
        use of the resources of the Federal Government and State and 
        local governments for such response.
            (7) The name of the official or office of the Federal 
        Government designated to coordinate the response of the Federal 
        Government to such emergencies.
            (8) A description of the lines of authority between the 
        departments and agencies of the Federal Government to be 
        involved in the response of the Federal Government to such 
        emergencies.
            (9) A description of the roles of each department and 
        agency of the Federal Government to be involved in the 
        preparations for, and implementation of, the response of the 
        Federal Government to such emergencies.
            (10) The estimated costs of each department and agency of 
        the Federal Government to prepare for and carry out its role as 
        described under paragraph (9).
            (11) A description of the steps, if any, being taken to 
        create a funding mechanism for the response of the Federal 
        Government to such emergencies.

SEC. 333. TECHNICAL AMENDMENTS.

    (a) Plot Allowance for Deaths in Department Facilities.--Section 
2303(a)(2)(A) is amended by striking out ``a Department facility (as 
defined in section 1701(4) of this title)'' and inserting in lieu 
thereof ``a facility of the Department (as defined in section 1701(3) 
of this title)''.
    (b) Educational Assistance Allowance for Certain Individuals 
Pursuing Cooperative Programs.--Section 3015(e)(1) is amended--
            (1) by striking out ``(1) Subject to paragraph (2)'' and 
        inserting in lieu thereof ``(1)(A) Except as provided in 
        subparagraph (B) of this paragraph and subject to paragraph 
        (2)''; and
            (2) by adding at the end the following:
    ``(B) Notwithstanding subparagraph (A) of this paragraph, in the 
case of an individual described in that subparagraph who is pursuing a 
cooperative program on or after October 9, 1996, the rate of the basic 
educational assistance allowance applicable to such individual under 
this chapter shall be increased by the amount equal to one-half of the 
educational assistance allowance that would be applicable to such 
individual for pursuit of full-time institutional training under 
chapter 34 (as of the time the assistance under this chapter is 
provided and based on the rates in effect on December 31, 1989) if such 
chapter were in effect.''.
    (c) Eligibility of Certain VEAP Participants To Enroll in 
Montgomery GI Bill.--Section 3018C(a) is amended--
            (1) in paragraph (1), by striking out ``the date of the 
        enactment of the Veterans' Benefits Improvements Act of 1996'' 
        and inserting in lieu thereof ``October 9, 1996,'';
            (2) in paragraph (4), by striking out ``during the one-year 
        period specified'' and inserting in lieu thereof ``after the 
        date on which the individual makes the election described''; 
        and
            (3) in paragraph (5), by striking out ``the date of the 
        enactment of the Veterans' Benefits Improvements Act of 1996'' 
        and inserting in lieu thereof ``October 9, 1996''.
    (d) Enrollment in Open Circuit Television Courses.--Section 
3680A(a)(4) is amended by inserting ``(including open circuit 
television)'' after ``independent study program'' the second place it 
appears.
    (e) Enrollment in Certain Courses.--Section 3680A(g) is amended by 
striking out ``subsections (e) and (f)'' and inserting in lieu thereof 
``subsections (e) and (f)(1)''.
    (f) Certain Benefits for Surviving Spouses.--Section 5310(b)(2) is 
amended by striking out ``under this paragraph'' in the first sentence 
and inserting in lieu thereof ``under paragraph (1)''.
            Amend the title so as to read: ``A bill to codify the 
        December 1, 1996, increase in the rates and limitations of 
        compensation and dependency and indemnity compensation payable 
        by the Secretary of Veterans Affairs, to authorize major 
        medical facility projects and leases of the Department of 
        Veterans Affairs, to extend and improve other authorities of 
        the Secretary, and for other purposes.''.