[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 801 Reported in House (RH)]






                                                  Union Calendar No. 18
107th CONGRESS
  1st Session
                                H. R. 801

                          [Report No. 107-27]

     To amend title 38, United States Code, to improve programs of 
educational assistance, to expand programs of transition assistance and 
  outreach to departing servicemembers, veterans, and dependents, to 
    increase burial benefits, to provide for family coverage under 
     Servicemembers' Group Life Insurance, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 28, 2001

Mr. Smith of New Jersey (for himself, Mr. Evans, Mr. Hayworth, and Mr. 
    Reyes) introduced the following bill; which was referred to the 
                     Committee on Veterans' Affairs

                             March 26, 2001

Additional sponsors: Mr. Stump, Mr. Bilirakis, Mr. Buyer, Mr. Simpson, 
 Mr. Simmons, Mr. Brown of South Carolina, Mr. Hansen, Mr. Spence, Mr. 
 Filner, Mr. Pascrell, Mr. Ehrlich, Mrs. Roukema, Mr. Goode, Ms. Brown 
  of Florida, Mr. Baldacci, Ms. Carson of Indiana, Mr. Crenshaw, Mrs. 
 Kelly, Mr. Terry, Mr. Snyder, Mr. Gutierrez, Mr. Putnam, Mr. Edwards, 
 Ms. Solis, Mr. Honda, Mr. Doyle, Ms. Waters, Mr. Gonzalez, Mr. Owens, 
Ms. Berkley, Mr. Peterson of Minnesota, Mr. Shows, Mr. Abercrombie, Mr. 
Udall of New Mexico, Mrs. Jo Ann Davis of Virginia, Mr. Berry, and Mrs. 
                          McCarthy of New York

                             March 26, 2001

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike all after the enacting clause and insert the part printed in 
                                italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           February 28, 2001]

_______________________________________________________________________

                                 A BILL


 
     To amend title 38, United States Code, to improve programs of 
educational assistance, to expand programs of transition assistance and 
  outreach to departing servicemembers, veterans, and dependents, to 
    increase burial benefits, to provide for family coverage under 
     Servicemembers' Group Life Insurance, 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 
Opportunities Act of 2001''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.

               TITLE I--EDUCATIONAL ASSISTANCE PROVISIONS

Sec. 101. Increase in maximum allowable annual Senior ROTC educational 
                            assistance for eligibility for benefits 
                            under the Montgomery GI Bill.
Sec. 102. Expansion of work-study opportunities.
Sec. 103. Inclusion of certain private technology entities in the 
                            definition of educational institution.
Sec. 104. Expansion of special restorative training benefit to certain 
                            disabled spouses or surviving spouses.
Sec. 105. Distance education.
Sec. 106. Technical amendments to the Montgomery GI Bill.

              TITLE II--TRANSITION AND OUTREACH PROVISIONS

Sec. 201. Authority to establish overseas veterans assistance offices 
                            to expand transition assistance.
Sec. 202. Timing of preseparation counseling.
Sec. 203. Improvement in education and training outreach services for 
                            separating servicemembers and veterans.
Sec. 204. Expansion of outreach efforts to eligible dependents.
Sec. 205. Improvement of veterans outreach programs.

      TITLE III--MEMORIAL AFFAIRS, INSURANCE, AND OTHER PROVISIONS

Sec. 301. Increase in burial benefits.
Sec. 302. Family coverage under Servicemembers' Group Life Insurance.
Sec. 303. Retroactive applicability of increase in maximum SGLI benefit 
                            for members dying in performance of duty on 
                            or after October 1, 2000.
Sec. 304. Increase in amount of assistance for automobile and adaptive 
                            equipment for certain disabled veterans.
Sec. 305. Increase in assistance amount for specially adapted housing.
Sec. 306. Revision of rules with respect to net worth limitation for 
                            eligibility for pensions for veterans who 
                            are permanently and totally disabled from a 
                            non-service-connected disability.
Sec. 307. Technical amendments.

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--EDUCATIONAL ASSISTANCE PROVISIONS

SEC. 101. INCREASE IN MAXIMUM ALLOWABLE ANNUAL SENIOR ROTC EDUCATIONAL 
              ASSISTANCE FOR ELIGIBILITY FOR BENEFITS UNDER THE 
              MONTGOMERY GI BILL.

    (a) In General.--Sections 3011(c)(3)(B) and 3012(d)(3)(B) are each 
amended by striking ``$2,000'' and inserting ``$3,400''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act and shall apply 
with respect to educational assistance allowances paid under chapter 30 
of title 38, United States Code, for months beginning after such date.

SEC. 102. EXPANSION OF WORK-STUDY OPPORTUNITIES.

    (a) Assisting in Outreach Services.--The second sentence of section 
3485(a)(1) is amended in clause (A) by inserting before the comma the 
following: ``or outreach services to servicemembers and veterans 
furnished by employees of State approving agencies''.
    (b) Working in Major Academic Discipline.--Such sentence is further 
amended--
            (1) by striking ``or (E)'' and inserting ``(E)''; and
            (2) by inserting before the period the following: ``, or 
        (F) in the case of an individual who has declared a major 
        academic discipline, activities within the department of that 
        academic discipline approved by the Secretary that complement 
        and reinforce the program of education pursued by that 
        individual''.
    (c) Working in State Veterans Home.--Such sentence is amended in 
clause (C) by inserting after the comma ``including the provision of 
such care to veterans in a State home for which payment is made under 
section 1741 of this title,''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to agreements entered into under section 3485 of 
title 38, United States Code, on or after the date of the enactment of 
this Act.

SEC. 103. INCLUSION OF CERTAIN PRIVATE TECHNOLOGY ENTITIES IN THE 
              DEFINITION OF EDUCATIONAL INSTITUTION.

    (a) In General.--Sections 3452(c) and 3501(a)(6) are each amended 
by adding at the end the following new sentence: ``Such term also 
includes any private entity (that meets such requirements as the 
Secretary may establish) that offers, either directly or under an 
agreement with another entity (that meets such requirements), a course 
or courses to fulfill requirements for the attainment of a license or 
certificate generally recognized as necessary to obtain, maintain, or 
advance in employment in a profession or vocation in a technological 
occupation (as determined by the Secretary).''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to enrollments in courses occurring on or after the date of the 
enactment of this Act.

SEC. 104. EXPANSION OF SPECIAL RESTORATIVE TRAINING BENEFIT TO CERTAIN 
              DISABLED SPOUSES OR SURVIVING SPOUSES.

    (a) In General.--Section 3540 is amended by striking ``section 
3501(a)(1)(A) of this title'' and inserting ``subparagraphs (A), (B), 
and (D) of section 3501(a)(1) of this title''.
    (b) Conforming Amendments.--(1) Section 3541(a) is amended in the 
matter preceding paragraph (1) by striking ``of the parent or 
guardian''.
    (2) Section 3542(a) is amended--
            (A) by striking ``the parent or guardian shall be entitled 
        to receive on behalf of such person'' and inserting ``the 
        eligible person shall be entitled to receive''; and
            (B) by striking ``upon election by the parent or guardian 
        of the eligible person'' and inserting ``upon election by the 
        eligible person''.
    (3) Section 3543(a) is amended by striking ``the parent or guardian 
for the training provided to an eligible person'' and inserting ``for 
the training provided to the eligible person''.
    (4) Section 3543 is amended by adding at the end the following new 
subsection:
    ``(c) In a case in which the Secretary determines requires a parent 
or guardian to make a request under section 3541(a) of this title on 
behalf of an eligible person, the parent or guardian shall be 
entitled--
            ``(1) to receive on behalf of the eligible person the 
        special training allowance provided for under section 3542(a) 
        of this title;
            ``(2) to elect an increase in the basic monthly allowance 
        provided for under such section; and
            ``(3) to agree with the Secretary on the fair and 
        reasonable amounts which may be charged under subsection 
        (a).''.

SEC. 105. DISTANCE EDUCATION.

    (a) In General.--Subsection (a)(4) of section 3680A is amended--
            (1) by inserting ``(A)'' after ``leading''; and
            (2) by inserting before the period the following: ``, or 
        (B) to a certificate that reflects educational attainment 
        offered by an institution of higher learning''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to enrollments in independent study courses beginning on or after 
the date of the enactment of this Act.

SEC. 106. TECHNICAL AMENDMENTS TO THE MONTGOMERY GI BILL.

    (a) Clarification of Eligibility Requirement for MGIB Benefits.--
            (1) In general.--Clause (i) of section 3011(a)(1)(A) is 
        amended to read as follows:
                            ``(i) who (I) in the case of an individual 
                        whose obligated period of active duty is three 
                        years or more, serves at least three years of 
                        continuous active duty in the Armed Forces, or 
                        (II) in the case of an individual whose 
                        obligated period of active duty is less than 
                        three years, serves at least two years of 
                        continuous active duty in the Armed Forces; 
                        or''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect as if included in the enactment of the 
        Veterans Benefits and Health Care Improvement Act of 2000 
        (Public Law 106-419).
    (b) Entitlement Charge for Off-Duty Training and Education.--
            (1) In general.--Section 3014(b)(2) is amended--
                    (A) in subparagraph (A), by striking ``(without 
                regard to'' and all that follows through 
                ``subsection''; and
                    (B) by adding at the end the following new 
                subparagraph:
    ``(C) The number of months of entitlement charged under this 
chapter in the case of an individual who has been paid a basic 
educational assistance allowance under this subsection shall be equal 
to the number (including any fraction) determined by dividing the total 
amount of such educational assistance allowance paid the individual by 
the full-time monthly institutional rate of educational assistance 
which such individual would otherwise be paid under subsection (a)(1), 
(b)(1), (c)(1), or (e)(1) of section 3015 of this title, as the case 
may be.''.
            (2) Conforming amendments.--(A) Section 3015 is amended--
                    (i) in subsections (a)(1) and (b)(1), by inserting 
                ``subsection (g)'' after ``from time to time under'';
                    (ii) by striking the first subsection (g), as 
                inserted by section 1602(b)(3)(C) of the Floyd D. 
                Spence National Defense Authorization Act for Fiscal 
                Year 2001 (enacted by Public Law 106-398; 114 Stat. 
                1654A-359); and
                    (iii) by redesignating subsection (h) as subsection 
                (g).
            (B) Section 3032(b) is amended by inserting before the 
        period at the end the following: ``, or (3) the amount of the 
        charges of the educational institution elected by the 
        individual under section 3014(b)(1) of this title''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect as if enacted on November 1, 2000.
    (c) Incremental MGIB Increases for Contributing Active Duty 
Members.--
            (1) In general.--Section 3011(e), as added by section 
        105(a)(1) of the Veterans Benefits and Health Care Improvement 
        Act of 2000 (Public Law 106-419; 114 Stat. 1828), is amended--
                    (A) in paragraph (2), by inserting ``, but not more 
                frequently than monthly'' before the period;
                    (B) in paragraph (3), by striking ``$4'' and 
                inserting ``$20''; and
                    (C) in paragraph (4)--
                            (i) by striking ``Secretary. The'' and 
                        inserting ``Secretary of the military 
                        department concerned. That''; and
                            (ii) by striking ``by the Secretary''.
            (2) Conforming amendments.--(A) Section 3012(f), as added 
        by section 105(a)(2) of such Act, is amended--
                    (i) in paragraph (2), by inserting ``, but not more 
                frequently than monthly'' before the period;
                    (ii) in paragraph (3), by striking ``$4'' and 
                inserting ``$20''; and
                    (iii) in paragraph (4)--
                            (I) by striking ``Secretary. The'' and 
                        inserting ``Secretary of the military 
                        department concerned. That''; and
                            (II) by striking ``by the Secretary''.
            (B) Section 3015(g), as added by section 105(b)(3) of such 
        Act, is amended--
                    (i) in the matter preceding paragraph (1), by 
                inserting ``effective as of the first day of the 
                enrollment period following receipt of such 
                contribution by the Secretary concerned,'' after ``by 
                section 3011(e) or 3012(f) of this title,''; and
                    (ii) in paragraph (1)--
                            (I) by striking ``$1'' and inserting 
                        ``$5'';
                            (II) by striking ``$4'' and inserting 
                        ``$20''; and
                            (III) by inserting ``of this title'' after 
                        ``section 3011(e) or 3012(f)''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect as if included in the enactment of section 
        105 of the Veterans Benefits and Health Care Improvement Act of 
        2000 (Public Law 106-419; 114 Stat. 1828).
    (d) Conforming Amendment for Death Benefit.--
            (1) In general.--Paragraph (1) of section 3017(b) is 
        amended to read as follows:
            ``(1) the sum of (A) the total amount reduced from the 
        individual's basic pay under section 3011(b), 3012(c), or 
        3018(c) of this title, and (B) the total amount of any 
        contributions made by the individual under section 3011(e) or 
        3012(f) of this title, less''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on May 1, 2001.
    (e) Clarification of Time Period for Election of Beginning of 
Chapter 35 Eligibility for Dependents.--
            (1) In general.--(A) Section 3512(a)(3)(B), as amended by 
        section 112 of the Veterans Benefits and Health Care 
        Improvement Act of 2000 (Public Law 106-419; 114 Stat. 1831), 
        is amended to read as follows:
                    ``(B) the eligible person elects that beginning 
                date by not later than the end of the 60-day period 
                beginning on the date on which the Secretary provides 
                written notice to that person of that person's 
                opportunity to make such election, such notice 
                including a statement of the deadline for the election 
                imposed under this subparagraph; and''.
            (B) Section 3512(a)(3)(C), as so amended by such section, 
        is amended by striking ``between the dates described in'' and 
        inserting ``the date determined pursuant to''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect as if enacted on November 1, 2000.

              TITLE II--TRANSITION AND OUTREACH PROVISIONS

SEC. 201. AUTHORITY TO ESTABLISH OVERSEAS VETERANS ASSISTANCE OFFICES 
              TO EXPAND TRANSITION ASSISTANCE.

    Section 7723(a) is amended by inserting after the first sentence 
the following new sentence: ``The Secretary may maintain such offices 
on such military installations located elsewhere as the Secretary, 
after consultation with the Secretary of Defense, determines to be 
necessary to carry out such purposes.''.

SEC. 202. TIMING OF PRESEPARATION COUNSELING.

    (a) In General.--(1) The first sentence of section 1142(a)(1) of 
title 10, United States Code, is amended to read as follows: ``Within 
the time periods specified in paragraph (3), the Secretary concerned 
shall (except as provided in paragraph (4)) provide for individual 
preseparation counseling of each member of the armed forces whose 
discharge or release from active duty is anticipated as of a specific 
date.''.
    (2) Such section is further amended by adding at the end the 
following new paragraphs:
    ``(3)(A) In the case of an anticipated retirement, preseparation 
counseling shall commence as soon as possible during the 24-month 
period preceding the anticipated retirement date. In the case of a 
separation other than a retirement, preseparation counseling shall 
commence as soon as possible during the 12-month period preceding the 
anticipated date. Except as provided in subparagraph (B), in no event 
shall preseparation counseling commence later than 90 days before the 
date of discharge or release.
    ``(B) In the event that a retirement or other separation is 
unanticipated until there are 90 or fewer days before the anticipated 
retirement or separation date, preseparation counseling shall begin as 
soon as possible within the remaining period of service.
    ``(4)(A) Subject to subparagraph (B), the Secretary concerned shall 
not provide preseparation counseling to a member who is being 
discharged or released before the completion of that member's first 180 
days of active duty.
    ``(B) Subparagraph (A) shall not apply in the case of a member who 
is being retired or separated for disability.''.
    (b) Conforming Amendment.--The second sentence of section 
1144(a)(1) of title 10, United States Code, is amended by striking 
``during the 180-day period'' and all that follows and inserting 
``within the time periods provided under paragraph (3) of section 
1142(a) of this title, except that the Secretary concerned shall not 
provide preseparation counseling to a member described in paragraph 
(4)(A) of such section.''.

SEC. 203. IMPROVEMENT IN EDUCATION AND TRAINING OUTREACH SERVICES FOR 
              SEPARATING SERVICEMEMBERS AND VETERANS.

    (a) Providing Outreach Through State Approving Agencies.--Section 
3672(d) is amended by inserting ``and State approving agencies'' before 
``shall actively promote the development of programs of training on the 
job''.
    (b) Additional Duty.--Such section is further amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) In conjunction with outreach services furnished by the 
Secretary for education and training benefits under chapter 77 of this 
title, each State approving agency shall conduct outreach programs and 
provide outreach services to eligible persons and veterans about 
education and training benefits available under applicable Federal and 
State law.''.

SEC. 204. EXPANSION OF OUTREACH EFFORTS TO ELIGIBLE DEPENDENTS.

    (a) Availability of Outreach Services for Children, Spouses, 
Surviving Spouses, and Dependent Parents.--Paragraph (2) of section 
7721(b) is amended to read as follows:
            ``(2) the term `eligible dependent' means a spouse, 
        surviving spouse, child, or dependent parent of a person who 
        served in the active military, naval, or air service.''.
    (b) Improved Outreach Program.--(1) Subchapter II of chapter 77 is 
amended by adding at the end the following new section:
``Sec. 7727. Outreach for eligible dependents
    ``(a) In carrying out this subchapter, the Secretary shall ensure 
that the needs of eligible dependents are fully addressed.
    ``(b) The Secretary shall ensure that the availability of outreach 
services and assistance for eligible dependents under this subchapter 
is made known through a variety of means, including the Internet, 
announcements in veterans publications, and announcements to the 
media.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 7726 the 
following new item:

``7727. Outreach for eligible dependents.''.

SEC. 205. IMPROVEMENT OF VETERANS OUTREACH PROGRAMS.

    Section 7722(c) is amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) by adding at the end the following:
    ``(2) Whenever a veteran or dependent first applies for any benefit 
under laws administered by the Secretary (including a request for 
burial or related benefits or an application for life insurance 
proceeds), the Secretary shall provide to the veteran or dependent 
information concerning benefits and health care services under programs 
administered by the Secretary.''.

      TITLE III--MEMORIAL AFFAIRS, INSURANCE, AND OTHER PROVISIONS

SEC. 301. INCREASE IN BURIAL BENEFITS.

    (a) Burial and Funeral Expenses.--(1) Section 2307 is amended by 
striking ``$1,500'' and inserting ``$2,000 (as increased from time to 
time under section 5312 of this title)''.
    (2) Section 2302(a) is amended by striking ``$300'' and inserting 
``$500 (as increased from time to time under section 5312 of this 
title)''.
    (3) Section 2303(a)(1)(A) is amended by striking ``$300'' and 
inserting ``$500 (as increased from time to time under section 5312 of 
this title)''.
    (b) Plot Allowance.--Section 2303(b) is amended by striking 
``$150'' each place it appears and inserting ``$300 (as increased from 
time to time under section 5312 of this title)''.
    (c) Indexing Payment Amounts.--Section 5312(a) is amended--
            (1) by striking ``and each rate of monthly allowance'' and 
        inserting ``each rate of monthly allowance''; and
            (2) by inserting ``and each rate of allowance paid under 
        sections 2302, 2303, and 2307 of this title,'' after ``under 
        section 1805 of this title,''.
    (d) Effective Date.--The amendments made by this section shall 
apply to deaths occurring on or after the date of the enactment of this 
Act.

SEC. 302. FAMILY COVERAGE UNDER SERVICEMEMBERS' GROUP LIFE INSURANCE.

    (a) Insurable Dependents.--(1) Section 1965 is amended by adding at 
the end the following new paragraph:
            ``(10) The term `insurable dependent', with respect to a 
        member, means the following:
                    ``(A) The member's spouse.
                    ``(B) The member's child, as defined in the first 
                sentence of section 101(4)(A) of this title.''.
    (2) Section 101(4)(A) is amended in the matter preceding clause (i) 
by inserting ``(other than with respect to a child who is an insurable 
dependent under section 1965(10)(B) of such chapter)'' after ``except 
for purposes of chapter 19 of this title''.
    (b) Insurance Coverage.--(1) Subsection (a) of section 1967 is 
amended to read as follows:
    ``(a)(1) Subject to an election under paragraph (2), any policy of 
insurance purchased by the Secretary under section 1966 of this title 
shall automatically insure the following persons against death:
            ``(A) In the case of any member of a uniformed service on 
        active duty (other than active duty for training)--
                    ``(i) the member; and
                    ``(ii) each insurable dependent of the member.
            ``(B) Any member of a uniformed service on active duty for 
        training or inactive duty training scheduled in advance by 
        competent authority.
            ``(C) In the case of any member of the Ready Reserve of a 
        uniformed service who meets the qualifications set forth in 
        section 1965(5)(B) of this title--
                    ``(i) the member; and
                    ``(ii) each insurable dependent of the member.
    ``(2)(A) A member may elect in writing not to be insured under this 
subchapter.
    ``(B) A member may elect in writing not to insure the member's 
spouse under this subchapter.
    ``(3)(A) Subject to subparagraphs (B) and (C), the amount for which 
a person is insured under this subchapter is as follows:
            ``(i) In the case of a member, $250,000.
            ``(ii) In the case of a member's spouse, $100,000.
            ``(iii) In the case of a member's child, $10,000.
    ``(B) A member may elect in writing to be insured or to insure the 
member's spouse in an amount less than the amount provided for under 
subparagraph (A). The member may not elect to insure the member's child 
in an amount less than $10,000. The amount of insurance so elected 
shall, in the case of a member or spouse, be evenly divisible by 
$10,000.
    ``(C) In no case may the amount of insurance coverage under this 
subsection of a member's spouse exceed the amount of insurance coverage 
of the member.
    ``(4)(A) An insurable dependent of a member is not insured under 
this chapter unless the member is insured under this subchapter.
    ``(B) An insurable dependent who is a child may not be insured at 
any time by the insurance coverage under this chapter of more than one 
member. If an insurable dependent who is a child is otherwise eligible 
to be insured by the coverage of more than one member under this 
chapter, the child shall be insured by the coverage of the member whose 
eligibility for insurance under this subchapter occurred first, except 
that if that member does not have legal custody of the child, the child 
shall be insured by the coverage of the member who has legal custody of 
the child.
    ``(5) The insurance shall be effective with respect to a member and 
the insurable dependents of the member on the latest of the following 
dates:
            ``(A) The first day of active duty or active duty for 
        training.
            ``(B) The beginning of a period of inactive duty training 
        scheduled in advance by competent authority.
            ``(C) The first day a member of the Ready Reserve meets the 
        qualifications set forth in section 1965(5)(B) of this title.
            ``(D) The date certified by the Secretary to the Secretary 
        concerned as the date Servicemembers' Group Life Insurance 
        under this subchapter for the class or group concerned takes 
        effect.
            ``(E) In the case of an insurable dependent who is a 
        spouse, the date of marriage of the spouse to the member.
            ``(F) In the case of an insurable dependent who is a child, 
        the date of birth of such child or, if the child is not the 
        natural child of the member, the date on which the child 
        acquires status as an insurable dependent of the member.''.
    (2) Subsection (c) of such section is amended by striking the first 
sentence and inserting the following: ``If a person eligible for 
insurance under this subchapter is not so insured, or is insured for 
less than the maximum amount provided for the person under subparagraph 
(A) of subsection (a)(3), by reason of an election made by a member 
under subparagraph (B) of that subsection, the person may thereafter be 
insured under this subchapter in the maximum amount or any lesser 
amount elected as provided in such subparagraph (B) upon written 
application by the member, proof of good health of each person (other 
than a child) to be so insured, and compliance with such other terms 
and conditions as may be prescribed by the Secretary.''.
    (c) Termination of Coverage.--(1) Subsection (a) of section 1968 is 
amended--
            (A) in the matter preceding paragraph (1), by inserting 
        ``and any insurance thereunder on any insurable dependent of 
        such a member,'' after ``any insurance thereunder on any member 
        of the uniformed services,''; and
            (B) by adding at the end the following new paragraph:
            ``(5) With respect to an insurable dependent of the member, 
        insurance under this subchapter shall cease--
                    ``(A) 120 days after the date of an election made 
                in writing by the member to terminate the coverage; or
                    ``(B) on the earliest of--
                            ``(i) 120 days after the date of the 
                        member's death;
                            ``(ii) 120 days after the date of 
                        termination of the insurance on the member's 
                        life under this subchapter; or
                            ``(iii) 120 days after the termination of 
                        the dependent's status as an insurable 
                        dependent of the member.''.
    (2) Such subsection is further amended--
            (A) in the matter preceding paragraph (1), by striking ``, 
        and such insurance shall cease--'' and inserting ``and such 
        insurance shall cease as follows:'';
            (B) by striking ``with'' after the paragraph designation in 
        each of paragraphs (1), (2), (3), and (4) and inserting 
        ``With'';
            (C) in paragraph (1)--
                    (i) in the matter preceding subparagraph (A), by 
                striking ``thirty-one days--'' and inserting ``31 days, 
                insurance under this subchapter shall cease--'';
                    (ii) in subparagraph (A)--
                            (I) by striking ``one hundred and twenty 
                        days'' after ``(A)'' and inserting ``120 
                        days''; and
                            (II) by striking ``prior to the expiration 
                        of one hundred and twenty days'' and inserting 
                        ``before the end of 120 days''; and
                    (iii) by striking the semicolon at the end of 
                subparagraph (B) and inserting a period;
            (D) in paragraph (2)--
                    (i) by striking ``thirty-one days'' and inserting 
                ``31 days,'';
                    (ii) by striking ``one hundred and twenty days'' 
                both places it appears and inserting ``120 days''; and
                    (iii) by striking the semicolon at the end and 
                inserting a period;
            (E) in paragraph (3)--
                    (i) by inserting a comma after ``competent 
                authority''
                    (ii) by striking ``one hundred and twenty days'' 
                both places it appears and inserting ``120 days''; and
                    (iii) by striking ``; and'' at the end and 
                inserting a period; and
            (F) in paragraph (4), by inserting ``insurance under this 
        subchapter shall cease'' before ``120 days after '' the first 
        place it appears.
    (3) Subsection (b)(1)(A) of such section is amended by inserting 
``(to insure against death of the member only)'' after ``converted to 
Veterans' Group Life Insurance''.
    (d) Premiums.--Section 1969 is amended by adding at the end the 
following new subsections:
    ``(g)(1)(A) During any period in which a spouse of a member is 
insured under this subchapter and the member is on active duty, there 
shall be deducted each month from the member's basic or other pay until 
separation or release from active duty an amount determined by the 
Secretary as the premium allocable to the pay period for providing that 
insurance coverage. No premium may be charged for providing insurance 
coverage for a child.
    ``(B) During any month in which a member is assigned to the Ready 
Reserve of a uniformed service under conditions which meet the 
qualifications set forth in section 1965(5)(B) of this title and the 
spouse of the member is insured under a policy of insurance purchased 
by the Secretary under section 1966 of this title, there shall be 
contributed from the appropriation made for active duty pay of the 
uniformed service concerned an amount determined by the Secretary 
(which shall be the same for all such members) as the share of the cost 
attributable to insuring the spouse of such member under this policy, 
less any costs traceable to the extra hazards of such duty in the 
uniformed services. Any amounts so contributed on behalf of any 
individual shall be collected by the Secretary concerned from such 
individual (by deduction from pay or otherwise) and shall be credited 
to the appropriation from which such contribution was made.
    ``(2)(A) The Secretary shall determine the premium amounts to be 
charged for life insurance coverage for spouses of members under this 
subchapter.
    ``(B) The premium amounts shall be determined on the basis of sound 
actuarial principles and shall include an amount necessary to cover the 
administrative costs to the insurer or insurers providing such 
insurance.
    ``(C) Each premium rate for the first policy year shall be 
continued for subsequent policy years, except that the rate may be 
adjusted for any such subsequent policy year on the basis of the 
experience under the policy, as determined by the Secretary in advance 
of that policy year.
    ``(h) Any overpayment of a premium for insurance coverage for an 
insurable dependent of a member that is terminated under section 
1968(a)(5) of this title shall be refunded to the member.''.
    (e) Payments of Insurance Proceeds.--Section 1970 is amended by 
adding at the end the following new subsection:
    ``(i) Any amount of insurance in force on an insurable dependent of 
a member under this subchapter on the date of the dependent's death 
shall be paid, upon the establishment of a valid claim therefor, to the 
member or, in the event of the member's death before payment to the 
member can be made, then to the person or persons entitled to receive 
payment of the proceeds of insurance on the member's life under this 
subchapter.''.
    (f) Conversion of SGLI to Private Life Insurance.--Section 1968(b) 
is amended by adding at the end the following new paragraph:
    ``(3)(A) In the case of a policy purchased under this subchapter 
for an insurable dependent who is a spouse, upon election of the 
spouse, the policy may be converted to an individual policy of 
insurance under the same conditions as described in section 1977(e) of 
this title (with respect to conversion of a Veterans' Group Life 
Insurance policy to such an individual policy) upon written application 
for conversion made to the participating company selected by the spouse 
and payment of the required premiums. Conversion of such policy to 
Veterans' Group Life Insurance is prohibited.
    ``(B) In the case of a policy purchased under this subchapter for 
an insurable dependent who is a child, such policy may not be converted 
under this subsection.''.
    (g) Effective Date and Initial Implementation.--(1) The amendments 
made by this section shall take effect on the first day of the first 
month that begins more than 120 days after the date of the enactment of 
this Act.
    (2) Each Secretary concerned, acting in consultation with the 
Secretary of Veterans Affairs, shall take such action as is necessary 
to ensure that during the period between the date of the enactment of 
this Act and the effective date determined under paragraph (1) each 
eligible member--
            (A) is furnished an explanation of the insurance benefits 
        available for dependents under the amendments made by this 
        section; and
            (B) is afforded an opportunity before such effective date 
        to make elections that are authorized under those amendments to 
        be made with respect to dependents.
    (3) For purposes of paragraph (2):
            (A) The term ``Secretary concerned'' has the meaning given 
        that term in section 101 of title 38, United States Code.
            (B) The term ``eligible member'' means a member of the 
        uniformed services described in subparagraph (A) or (C) of 
        section 1967(a)(1) of title 38, United States Code, as amended 
        by subsection (b)(1).

SEC. 303. RETROACTIVE APPLICABILITY OF INCREASE IN MAXIMUM SGLI BENEFIT 
              FOR MEMBERS DYING IN PERFORMANCE OF DUTY ON OR AFTER 
              OCTOBER 1, 2000.

    (a) Applicability of Increase in Benefit.--Notwithstanding 
subsection (c) of section 312 of the Veterans Benefits and Health Care 
Improvement Act of 2000 (Public Law 106-419; 114 Stat. 1854), the 
amendments made by subsection (a) of that section shall take effect on 
October 1, 2000, with respect to any member of the Armed Forces who 
died in the performance of duty (as determined by the Secretary 
concerned) during the period beginning on October 1, 2000, and ending 
at the close of March 31, 2001, and who on the date of death was 
insured under the Servicemembers' Group Life Insurance program under 
subchapter III of chapter 19 of title 38, United States Code, for the 
maximum coverage available under that program.
    (b) Definition.--For purposes of this section, the term ``Secretary 
concerned'' has the meaning given that term in section 101(25) of title 
38, United States Code.

SEC. 304. INCREASE IN AMOUNT OF ASSISTANCE FOR AUTOMOBILE AND ADAPTIVE 
              EQUIPMENT FOR CERTAIN DISABLED VETERANS.

    Section 3902(a) is amended by striking ``$8,000'' and inserting 
``$9,000''.

SEC. 305. INCREASE IN ASSISTANCE AMOUNT FOR SPECIALLY ADAPTED HOUSING.

    Section 2102 is amended--
            (1) in the matter preceding paragraph (1) of subsection 
        (a), by striking ``$43,000'' and inserting ``$48,000''; and
            (2) in subsection (b)(2), by striking ``$8,250'' and 
        inserting ``$9,250''.

SEC. 306. REVISION OF RULES WITH RESPECT TO NET WORTH LIMITATION FOR 
              ELIGIBILITY FOR PENSIONS FOR VETERANS WHO ARE PERMANENTLY 
              AND TOTALLY DISABLED FROM A NON-SERVICE-CONNECTED 
              DISABILITY.

    (a) In General.--Section 1522(a) is amended by adding at the end 
the following new sentence: ``In determining the corpus of the estates 
of the veteran and the veteran's spouse, if any, the value of the real 
property of the veteran and the veteran's spouse and children shall be 
excluded if such property is used for farming, ranching, or similar 
agricultural purposes.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to payment of pensions for months beginning on or after the date 
of the enactment of this Act.

SEC. 307. TECHNICAL AMENDMENTS.

    (a) Title 38, United States Code.--Title 38, United States Code, is 
amended as follows:
            (1) Effective as of November 1, 2000, section 107 is 
        amended--
                    (A) in the second sentence of subsection (a), by 
                inserting ``or (d)'' after ``subsection (c)'';
                    (B) by redesignating the second subsection (c) 
                (added by section 332(a)(2) of the Veterans Benefits 
                and Health Care Improvement Act of 2000 (Public Law 
                106-419)) as subsection (d); and
                    (C) in subsection (d), as so redesignated, by 
                striking ``In'' in paragraph (1) and inserting ``With 
                respect to benefits under chapter 23 of this title, 
                in''.
            (2) Section 3512 is amended--
                    (A) in subsection (a)(5), by striking ``clause (4) 
                of this subsection'' and inserting ``paragraph (4)''; 
                and
                    (B) in subsection (b)(2), by striking ``willfull'' 
                and inserting ``willful''.
            (3) Section 4303(13) is amended by striking the second 
        period at the end.
    (b) Public Law 106-419.--Effective as of November 1, 2000, and as 
if included therein as originally enacted, the Veterans Benefits and 
Health Care Improvement Act of 2000 (Public Law 106-419) is amended as 
follows:
            (1) Section 111(f)(3) (114 Stat. 1831) is amended by 
        striking ``3654'' and inserting ``3564''.
            (2) Section 323(a)(1) (114 Stat. 1855) is amended by 
        inserting a comma in the second quoted matter therein after 
        ``duty''.
            (3) Section 401(e)(1) (114 Stat. 1860) is amended by 
        striking ``this'' both places it appears in quoted matter and 
        inserting ``This''.
            (4) Section 402(b) (114 Stat. 1861) is amended by striking 
        the close quotation marks and period at the end of the table in 
        paragraph (2) of the matter inserted by the amendment made that 
        section.
    (c) Public Law 102-590.--Section 3(a)(1) of the Homeless Veterans 
Comprehensive Service Programs Act of 1992 (38 U.S.C. 7721 note) is 
amended by striking ``, during,''.




                                                  Union Calendar No. 18

107th CONGRESS

  1st Session

                               H. R. 801

                          [Report No. 107-27]

_______________________________________________________________________

                                 A BILL

     To amend title 38, United States Code, to improve programs of 
educational assistance, to expand programs of transition assistance and 
  outreach to departing servicemembers, veterans, and dependents, to 
    increase burial benefits, to provide for family coverage under 
     Servicemembers' Group Life Insurance, and for other purposes.

_______________________________________________________________________

                             March 26, 2001

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed