[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2486 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                S. 2486

     To amend title 38, United States Code, to improve and enhance 
    education, housing, employment, medical, and other benefits for 
veterans and to improve and extend certain authorities relating to the 
    administration or benefits for veterans, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 1, 2004

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

_______________________________________________________________________

                                 A BILL


 
     To amend title 38, United States Code, to improve and enhance 
    education, housing, employment, medical, and other benefits for 
veterans and to improve and extend certain authorities relating to the 
    administration or benefits for veterans, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Veterans' Benefits 
Improvements Act of 2004''.
    (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--EDUCATION BENEFITS

Sec. 101. Increase in maximum amount of contribution for increased 
                            amount of basic educational assistance 
                            under Montgomery GI Bill.
Sec. 102. Pilot program on additional two-year period for use of 
                            entitlement by participants in Montgomery 
                            GI Bill for vocational or job readiness 
                            training.
Sec. 103. Exclusion of veterans education benefits in determination of 
                            eligibility or amount of Federal 
                            educational grants and loans.
Sec. 104. Collection of contributions for educational assistance under 
                            Montgomery GI Bill from Reserves called to 
                            active duty.
                       TITLE II--HOUSING BENEFITS

Sec. 201. Increase in maximum amount of housing loan guarantee.
Sec. 202. Permanent authority for guarantee of adjustable rate 
                            mortgages.
Sec. 203. Permanent authority for guarantee of hybrid adjustable rate 
                            mortgages and modification of guarantee 
                            authority.
Sec. 204. Termination of collection of loan fees from veterans rated 
                            eligible for compensation at pre-discharge 
                            rating examinations.
             TITLE III--OTHER BENEFITS AND BENEFITS MATTERS

                    Subtitle A--Employment Benefits

Sec. 301. Availability of administrative and judicial redress for 
                            certain veterans denied opportunity to 
                            compete for Federal employment.
                      Subtitle B--Medical Benefits

Sec. 311. Prohibition on collection of copayments for hospice care.
       Subtitle C--Extension of Benefits and Related Authorities

Sec. 321. Extension of various authorities relating to benefits for 
                            veterans.
                       Subtitle D--Other Matters

Sec. 331. Modification of definition of minority group member for 
                            purposes of Advisory Committee on Minority 
                            Veterans.

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

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

                      TITLE I--EDUCATION BENEFITS

SEC. 101. INCREASE IN MAXIMUM AMOUNT OF CONTRIBUTION FOR INCREASED 
              AMOUNT OF BASIC EDUCATIONAL ASSISTANCE UNDER MONTGOMERY 
              GI BILL.

    (a) Active Duty Benefit.--Section 3011(e)(3) is amended by striking 
``$600'' and inserting ``$2,000''.
    (b) Selected Reserve Benefit.--Section 3012(f)(3) is amended by 
striking ``$600'' and inserting ``$2,000''.

SEC. 102. PILOT PROGRAM ON ADDITIONAL TWO-YEAR PERIOD FOR USE OF 
              ENTITLEMENT BY PARTICIPANTS IN MONTGOMERY GI BILL FOR 
              VOCATIONAL OR JOB READINESS TRAINING.

    (a) In General.--(1) Subchapter I of chapter 30 is amended by 
adding at the end the following new section:
``Sec. 3020A. Additional two-year period for use of entitlement for 
              vocational or job readiness instruction or training: 
              pilot program
    ``(a) Pilot Program Required.--(1) The Secretary shall carry out a 
pilot program to assess the feasibility and advisability of permitting 
individuals whose entitlement to basic educational assistance under 
this chapter expires under section 3031 of this title before their 
complete use of such entitlement to be entitled to an additional two-
year period for their use of such entitlement.
    ``(2) The pilot program shall commence six months after the date of 
the enactment of this section, and shall terminate four years after the 
date of the commencement of the pilot program.
    ``(b) Additional Two-Year Period of Entitlement.--Notwithstanding 
any provision of section 3031 of this title, an individual described in 
subsection (c) shall, at the expiration of the 10-year period beginning 
on the educational assistance entitlement commencement date of such 
individual, be entitled to an additional two-year period for the use of 
entitlement to basic educational assistance under this chapter.
    ``(c) Eligible Individuals.--(1) An individual described in this 
subsection is any individual who--
            ``(A) as of the end of the 10-year period beginning on the 
        educational assistance entitlement commencement date of such 
        individual--
                    ``(i) would remain entitled to basic educational 
                assistance under this chapter but for the expiration of 
                the 10-year delimiting period applicable to such 
                individual under section 3031 of this title; and
                    ``(ii) has not utilized all of the entitlement of 
                such individual to basic educational assistance under 
                this chapter; and
            ``(B) at the time of the application for entitlement under 
        this subsection (d), is accepted, enrolled, or otherwise 
        participating (as determined by the Secretary) in instruction 
        or training described in subsection (e).
    ``(2) This subsection does not apply to an individual otherwise 
described by paragraph (1) whose remaining entitlement to basic 
educational assistance under this chapter as described in subparagraph 
(A)(ii) of that paragraph is based on the transfer of basic educational 
assistance under section 3020 of this title.
    ``(d) Application.--(1) An individual seeking an additional two-
year period for the use of entitlement under this section shall submit 
to the Secretary an application therefor containing such information as 
the Secretary may require for purposes of this section.
    ``(2) The Secretary may not receive applications under this 
subsection after the termination date of the pilot program under 
subsection (a)(2).
    ``(e) Commencement of Additional Period for Use.--The additional 
two-year period for the use of entitlement by an individual under this 
section shall commence on the date the application of the individual 
under subsection (d) is received by the Secretary if the Secretary 
determines pursuant to a review of the application that the individual 
is an individual described by subsection (c) for purposes of this 
section.
    ``(f) Instruction or Training Covered by Additional Period for 
Use.--(1) The instruction or training for which entitlement to basic 
educational assistance under this chapter may be used during the 
additional two-year period for the use of entitlement under this 
section is as follows:
            ``(A) Education leading to employment in a high technology 
        industry for purposes of section 3014A of this title.
            ``(B) A full-time program of apprenticeship or other on-job 
        training approved as provided in clause (1) or (2), as 
        appropriate, of section 3687 of this title.
            ``(C) A cooperative program (as defined in section 
        3482(a)(2) of this title).
            ``(D) A licensing or certification test approved under 
        section 3689 of this title.
            ``(E) Training or education leading toward a professional 
        or vocational objective which has been approved in accordance 
        with the provisions of subchapter I of chapter 36 of this title 
        and is identified by the Secretary in regulations to be 
        prescribed by the Secretary for purposes of this section.
    ``(2) Entitlement to basic educational assistance under this 
chapter may not be used during the additional two-year period for the 
use of entitlement under this section for the instruction or training 
as follows:
            ``(A) General education leading toward a standard college 
        degree (as defined in section 3452(g) of this title), unless 
        the program or training concerned will result in an associates 
        degree that is approved by the Secretary in the manner 
        specified in paragraph (1)(E) to be necessary to obtain a 
        professional or vocational objective.
            ``(B) Preparatory courses for a test that is required or 
        used for admission to an institution of higher education or 
        graduate school.
    ``(g) Coordination With Certain Other Benefits.--(1) An individual 
entitled to basic educational assistance under subsection (c) is 
entitled to educational and vocational counseling under section 3697A 
of this title in connection with the use of entitlement under this 
section.
    ``(2) An individual using entitlement to basic educational 
assistance under this chapter during the additional two-year period for 
the use of entitlement under this section is not entitled during the 
use of such entitlement to the following:
            ``(A) Supplemental educational assistance under subchapter 
        III of this chapter.
            ``(B) A work-study allowance under section 3485 of this 
        title.
    ``(h) Educational Assistance Entitlement Commencement Date 
Defined.--In this section, the term `educational assistance entitlement 
commencement date', in the case of an individual described in 
subsection (b)(1), means the date on which begins the period during 
which the individual may use the individual's entitlement to 
educational assistance under chapter as determined under section 3031 
of this title.
    ``(i) Effect of Termination of Pilot Program.--The termination of 
the pilot program under subsection (a)(2) shall not effect the 
continuing use of entitlement under this section of any individual 
whose additional two-year period for the use of entitlement under this 
section continues after the date of the termination of the pilot 
program under that subsection.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3020 the 
following new item:

``3020A. Additional two-year period for use of entitlement for 
                            vocational or job readiness instruction or 
                            training: pilot program.''.
    (b) Cross-Reference Amendment.--Section 3031 is amended--
            (1) in subsection (a), by striking ``subsections (b) 
        through (g), and subject to subsection (h),'' and inserting 
        ``subsections (b) through (h), and subject to subsection 
        (i),'';
            (2) by redesignating subsection (h) as subsection (i); and
            (3) by inserting after subsection (g) the following new 
        subsection (h):
    ``(h) An individual whose period for the use of entitlement to 
basic educational assistance under this chapter would otherwise expire 
under this section may be eligible for an additional two-year period 
for the use of entitlement under section 3020A of this title.''.

SEC. 103. EXCLUSION OF VETERANS EDUCATION BENEFITS IN DETERMINATION OF 
              ELIGIBILITY OR AMOUNT OF FEDERAL EDUCATIONAL GRANTS AND 
              LOANS.

    (a) In General.--(1) Subchapter II of chapter 36 is amended by 
inserting after section 3694 the following new section:
``Sec. 3694A. Exclusion of veterans education benefits in determination 
              of eligibility or amount of Federal education grants and 
              loans
    ``(a) Exclusion.--Notwithstanding any other provision of law and 
subject to subsection (b), education benefits shall not be considered 
as income, assets, or other monetary resource in determining 
eligibility for, or the amount of, grant or loan assistance provided 
under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
seq.).
    ``(b) Exception.--In the case of campus-based student financial 
assistance, the amount of such assistance for which an individual would 
otherwise be eligible without taking into consideration education 
benefits as described in subsection (a) shall be reduced to the extent 
that the sum of such amount, the amount of the education benefits of 
the individual, and the amount of the Federal Pell Grant, if any, of 
the individual exceeds the cost of attendance of the individual.
    ``(c) Definitions.--In this section:
            ``(1) The term `campus-based student financial assistance' 
        means grant, work, or loan assistance provided under subpart 3 
        of part A, and parts C and E of title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1070b et seq; 42 U.S.C. 2751 
        et seq.; 20 U.S.C. 1087aa et seq.).
            ``(2) The term `cost of attendance' has the meaning given 
        such term in section 472 of the Higher Education Act of 1965 
        (20 U.S.C. 1087ll).
            ``(3) The term `education benefits' means education 
        benefits under chapters 30, 32, and 35 of this title and under 
        chapter 1606 of title 10.
            ``(4) The term `Federal Pell Grant' means a grant provided 
        under subpart 1 of part A of title IV of the Higher Education 
        Act of 1965 (20 U.S.C. 1070a).''.
    (2) The table of sections at the beginning of chapter 36 is amended 
by inserting after the item referring to section 3694 the following new 
item:

``3694A. Exclusion of veterans education benefits in determination of 
                            eligibility or amount of Federal education 
                            grants and loans.''.
    (b) Effective Date.--The amendments made by this section shall be 
effective with respect to award years, as that term is defined in 
section 481(a)(1) of the Higher Education Act of 1965 (20 U.S.C. 
1088(a)(1)), beginning on or after July 1, 2004.

SEC. 104. COLLECTION OF CONTRIBUTIONS FOR EDUCATIONAL ASSISTANCE UNDER 
              MONTGOMERY GI BILL FROM RESERVES CALLED TO ACTIVE DUTY.

    (a) Active Duty Program.--Section 3011(b) is amended--
            (1) by striking ``The basic pay'' and inserting ``(1) 
        Except as provided in paragraph (2), the basic pay'';
            (2) by designating the second sentence as paragraph (3), 
        indenting the left margin of such paragraph, as so designated, 
        two ems, and, in that paragraph by striking ``this chapter'' 
        and inserting ``this subsection''; and
            (3) by inserting after paragraph (1), as so designated, the 
        following new paragraph:
    ``(2) In the case of an individual covered by paragraph (1) who is 
a Reserve, the Secretary shall collect from the individual an amount 
equal to $1,200 before the commencement by the individual of the use of 
entitlement to basic educational assistance under this chapter. The 
Secretary may collect such amount through reductions in basic pay in 
accordance with paragraph (1) or through such other method as the 
Secretary determines appropriate.''.
    (b) Selected Reserve Program.--Section 3012(c) is amended--
            (1) by striking ``The basic pay'' and inserting ``(1) 
        Except as provided in paragraph (2), the basic pay'';
            (2) by designating the second sentence as paragraph (3), 
        indenting the left margin of such paragraph, as so designated, 
        two ems, and, in that paragraph by striking ``this chapter'' 
        and inserting ``this subsection''; and
            (3) by inserting after paragraph (1), as so designated, the 
        following new paragraph:
    ``(2) In the case of an individual covered by paragraph (1) who is 
a Reserve, the Secretary shall collect from the individual an amount 
equal to $1,200 before the commencement by the individual of the use of 
entitlement to basic educational assistance under this chapter. The 
Secretary may collect such amount through reductions in basic pay in 
accordance with paragraph (1) or through such other method as the 
Secretary determines appropriate.''.

                       TITLE II--HOUSING BENEFITS

SEC. 201. INCREASE IN MAXIMUM AMOUNT OF HOUSING LOAN GUARANTEE.

    (a) In General.--Subparagraph (A)(i)(IV) of section 3703(a)(1) is 
amended by striking ``$60,000'' and inserting ``$83,425''.
    (b) Conforming Amendment.--Subparagraph (B) of such section is 
amended by striking ``$60,000'' and inserting ``$83,425''.

SEC. 202. PERMANENT AUTHORITY FOR GUARANTEE OF ADJUSTABLE RATE 
              MORTGAGES.

    Section 3707(a) is amended by striking ``The Secretary shall'' and 
all that follows through ``guaranteeing loans'' and inserting ``The 
Secretary shall guarantee loans''.

SEC. 203. PERMANENT AUTHORITY FOR GUARANTEE OF HYBRID ADJUSTABLE RATE 
              MORTGAGES AND MODIFICATION OF GUARANTEE AUTHORITY.

    (a) Permanent Authority.--Subsection (a) of section 3707A is 
amended by striking ``The Secretary shall'' and all that follows 
through ``guaranteeing loans'' and inserting ``The Secretary shall 
guarantee loans''.
    (b) Modification of Interest Rate Adjustment Requirements.--
Subsection (c) of such section is amended--
            (1) by striking paragraph (3) and inserting the following 
        new paragraph (3):
            ``(3) in the case of the initial interest rate adjustment 
        under such provisions, be limited to a maximum increase or 
        decrease of 1 percentage point if the interest rate remained 
        fixed for 3 or fewer years; and''; and
            (2) in paragraph (4), by striking ``5 percentage points'' 
        and all that follows and inserting ``such number of percentage 
        points as the Secretary shall prescribe for purposes of this 
        section.''.
    (c) No Effect on Guarantee of Loans Under Hybrid Adjustable Rate 
Mortgage Guarantee Demonstration Project.--The amendments made by this 
section shall not be construed to affect the force or validity of any 
guarantee of a loan made by the Secretary of Veterans Affairs under the 
demonstration project for the guarantee of hybrid adjustable rate 
mortgages under section 3707A of title 38, United States Code, as in 
effect on the day before the date of the enactment of this Act.

SEC. 204. TERMINATION OF COLLECTION OF LOAN FEES FROM VETERANS RATED 
              ELIGIBLE FOR COMPENSATION AT PRE-DISCHARGE RATING 
              EXAMINATIONS.

    Section 3729(c) is amended--
            (1) by inserting ``(1)'' before ``A fee''; and
            (2) by adding at the end the following new paragraph:
    ``(2) A veteran who is rated eligible to receive compensation as a 
result of a pre-discharge disability examination and rating shall be 
treated as receiving compensation for purposes of this subsection as of 
the date on which the veteran is rated eligible to receive compensation 
as a result of the pre-discharge disability examination and rating 
without regard to whether an effective date of the award of 
compensation is established as of that date.''.

             TITLE III--OTHER BENEFITS AND BENEFITS MATTERS

                    Subtitle A--Employment Benefits

SEC. 301. AVAILABILITY OF ADMINISTRATIVE AND JUDICIAL REDRESS FOR 
              CERTAIN VETERANS DENIED OPPORTUNITY TO COMPETE FOR 
              FEDERAL EMPLOYMENT.

    (a) Administrative Redress.--Section 3330a(a)(1) of title 5, United 
States Code, is amended--
            (1) by inserting ``(A)'' after ``(1)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) A veteran described in section 3304(f)(1) who alleges that an 
agency has violated such section with respect to such veteran may file 
a complaint with the Secretary of Labor.''.
    (b) Judicial Redress.--Section 3330b(a)(1) of such title is amended 
by inserting ``, or a veteran described by section 3330a(a)(1)(B) with 
respect to a violation described by such section,'' after ``a 
preference eligible''.

                      Subtitle B--Medical Benefits

SEC. 311. PROHIBITION ON COLLECTION OF COPAYMENTS FOR HOSPICE CARE.

    Section 1710B(c)(2) is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph (B):
            ``(B) to a veteran being furnished hospice care under this 
        section; or''.

       Subtitle C--Extension of Benefits and Related Authorities

SEC. 321. EXTENSION OF VARIOUS AUTHORITIES RELATING TO BENEFITS FOR 
              VETERANS.

    (a) Six-Year Extension of Biennial Report of Advisory Committee on 
Former Prisoners of War.--Section 541(c)(1) is amended by striking 
``2003'' and inserting ``2009''.
    (b) Permanent Authority for Counseling and Treatment for Sexual 
Trauma.--Section 1720D(a) is amended--
            (1) in paragraph (1), by striking ``During the period 
        through December 31, 2004, the Secretary'' and inserting ``The 
        Secretary''; and
            (2) in paragraph (2), by striking ``, during the period 
        through December 31, 2004,''.
    (c) Five-Year Extension of Reports by Special Medical Advisory 
Group.--Section 7312(d) is amended by striking ``December 31, 2004'' 
and inserting ``December 31, 2009''.

                       Subtitle D--Other Matters

SEC. 331. MODIFICATION OF DEFINITION OF MINORITY GROUP MEMBER FOR 
              PURPOSES OF ADVISORY COMMITTEE ON MINORITY VETERANS.

    Subsection (d) of section 544 is amended to read as follows:
    ``(d) In this section, the term `minority group member' means an 
individual who is--
            ``(1) American Indian or Alaska Native;
            ``(2) Asian;
            ``(3) Black or African American;
            ``(4) Native Hawaiian or other Pacific Islander; or
            ``(5) of Hispanic, Latino, or Spanish origin.''.
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