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






                                                       Calendar No. 706
108th CONGRESS
  2d Session
                                S. 2486

                          [Report No. 108-352]

     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, Ms. Murkowski, and Mrs. Murray) (by request) 
introduced the following bill; which was read twice and referred to the 
                     Committee on Veterans' Affairs

                           September 20, 2004

  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 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,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Veterans' 
Benefits Improvements Act of 2004''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. References to title 38, United States Code.
                  <DELETED>TITLE I--EDUCATION BENEFITS

<DELETED>Sec. 101. Increase in maximum amount of contribution for 
                            increased amount of basic educational 
                            assistance under Montgomery GI Bill.
<DELETED>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.
<DELETED>Sec. 103. Exclusion of veterans education benefits in 
                            determination of eligibility or amount of 
                            Federal educational grants and loans.
<DELETED>Sec. 104. Collection of contributions for educational 
                            assistance under Montgomery GI Bill from 
                            Reserves called to active duty.
                  <DELETED>TITLE II--HOUSING BENEFITS

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

                <DELETED>Subtitle A--Employment Benefits

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

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

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

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

<DELETED>SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE.</DELETED>

<DELETED>    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.</DELETED>

             <DELETED>TITLE I--EDUCATION BENEFITS</DELETED>

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

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

<DELETED>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.</DELETED>

<DELETED>    (a) In General.--(1) Subchapter I of chapter 30 is amended 
by adding at the end the following new section:</DELETED>
<DELETED>``Sec. 3020A. Additional two-year period for use of 
              entitlement for vocational or job readiness instruction 
              or training: pilot program</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Eligible Individuals.--(1) An individual described 
in this subsection is any individual who--</DELETED>
        <DELETED>    ``(A) as of the end of the 10-year period 
        beginning on the educational assistance entitlement 
        commencement date of such individual--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(ii) has not utilized all of the 
                entitlement of such individual to basic educational 
                assistance under this chapter; and</DELETED>
        <DELETED>    ``(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).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) The Secretary may not receive applications under 
this subsection after the termination date of the pilot program under 
subsection (a)(2).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(A) Education leading to employment in a high 
        technology industry for purposes of section 3014A of this 
        title.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(C) A cooperative program (as defined in section 
        3482(a)(2) of this title).</DELETED>
        <DELETED>    ``(D) A licensing or certification test approved 
        under section 3689 of this title.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(B) Preparatory courses for a test that is 
        required or used for admission to an institution of higher 
        education or graduate school.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(A) Supplemental educational assistance under 
        subchapter III of this chapter.</DELETED>
        <DELETED>    ``(B) A work-study allowance under section 3485 of 
        this title.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (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:</DELETED>

<DELETED>``3020A. Additional two-year period for use of entitlement for 
                            vocational or job readiness instruction or 
                            training: pilot program.''.
<DELETED>    (b) Cross-Reference Amendment.--Section 3031 is amended--
</DELETED>
        <DELETED>    (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),'';</DELETED>
        <DELETED>    (2) by redesignating subsection (h) as subsection 
        (i); and</DELETED>
        <DELETED>    (3) by inserting after subsection (g) the 
        following new subsection (h):</DELETED>
<DELETED>    ``(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.''.</DELETED>

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

<DELETED>    (a) In General.--(1) Subchapter II of chapter 36 is 
amended by inserting after section 3694 the following new 
section:</DELETED>
<DELETED>``Sec. 3694A. Exclusion of veterans education benefits in 
              determination of eligibility or amount of Federal 
              education grants and loans</DELETED>
<DELETED>    ``(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.).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Definitions.--In this section:</DELETED>
        <DELETED>    ``(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.).</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(3) The term `education benefits' means 
        education benefits under chapters 30, 32, and 35 of this title 
        and under chapter 1606 of title 10.</DELETED>
        <DELETED>    ``(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).''.</DELETED>
<DELETED>    (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:</DELETED>

<DELETED>``3694A. Exclusion of veterans education benefits in 
                            determination of eligibility or amount of 
                            Federal education grants and loans.''.
<DELETED>    (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.</DELETED>

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

<DELETED>    (a) Active Duty Program.--Section 3011(b) is amended--
</DELETED>
        <DELETED>    (1) by striking ``The basic pay'' and inserting 
        ``(1) Except as provided in paragraph (2), the basic 
        pay'';</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (3) by inserting after paragraph (1), as so 
        designated, the following new paragraph:</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Selected Reserve Program.--Section 3012(c) is 
amended--</DELETED>
        <DELETED>    (1) by striking ``The basic pay'' and inserting 
        ``(1) Except as provided in paragraph (2), the basic 
        pay'';</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (3) by inserting after paragraph (1), as so 
        designated, the following new paragraph:</DELETED>
<DELETED>    ``(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.''.</DELETED>

             <DELETED>TITLE II--HOUSING BENEFITS</DELETED>

<DELETED>SEC. 201. INCREASE IN MAXIMUM AMOUNT OF HOUSING LOAN 
              GUARANTEE.</DELETED>

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

<DELETED>SEC. 202. PERMANENT AUTHORITY FOR GUARANTEE OF ADJUSTABLE RATE 
              MORTGAGES.</DELETED>

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

<DELETED>SEC. 203. PERMANENT AUTHORITY FOR GUARANTEE OF HYBRID 
              ADJUSTABLE RATE MORTGAGES AND MODIFICATION OF GUARANTEE 
              AUTHORITY.</DELETED>

<DELETED>    (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''.</DELETED>
<DELETED>    (b) Modification of Interest Rate Adjustment 
Requirements.--Subsection (c) of such section is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (3) and inserting the 
        following new paragraph (3):</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    (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.''.</DELETED>
<DELETED>    (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.</DELETED>

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

<DELETED>    Section 3729(c) is amended--</DELETED>
        <DELETED>    (1) by inserting ``(1)'' before ``A fee''; 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        paragraph:</DELETED>
<DELETED>    ``(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.''.</DELETED>

   <DELETED>TITLE III--OTHER BENEFITS AND BENEFITS MATTERS</DELETED>

           <DELETED>Subtitle A--Employment Benefits</DELETED>

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

<DELETED>    (a) Administrative Redress.--Section 3330a(a)(1) of title 
5, United States Code, is amended--</DELETED>
        <DELETED>    (1) by inserting ``(A)'' after ``(1)''; 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        subparagraph:</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (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''.</DELETED>

            <DELETED>Subtitle B--Medical Benefits</DELETED>

<DELETED>SEC. 311. PROHIBITION ON COLLECTION OF COPAYMENTS FOR HOSPICE 
              CARE.</DELETED>

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

        <DELETED>Subtitle C--Extension of Benefits and Related 
                         Authorities</DELETED>

<DELETED>SEC. 321. EXTENSION OF VARIOUS AUTHORITIES RELATING TO 
              BENEFITS FOR VETERANS.</DELETED>

<DELETED>    (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''.</DELETED>
<DELETED>    (b) Permanent Authority for Counseling and Treatment for 
Sexual Trauma.--Section 1720D(a) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by striking ``During the 
        period through December 31, 2004, the Secretary'' and inserting 
        ``The Secretary''; and</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``, during the 
        period through December 31, 2004,''.</DELETED>
<DELETED>    (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''.</DELETED>

              <DELETED>Subtitle D--Other Matters</DELETED>

<DELETED>SEC. 331. MODIFICATION OF DEFINITION OF MINORITY GROUP MEMBER 
              FOR PURPOSES OF ADVISORY COMMITTEE ON MINORITY 
              VETERANS.</DELETED>

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

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--HOUSING MATTERS

Sec. 101. Increase in maximum amount of home loan guaranty for 
                            construction and purchase of homes and 
                            annual indexing of amount.
Sec. 102. Extension of authority for guarantee of adjustable rate 
                            mortgages.
Sec. 103. Extension and improvement of authority for guarantee of 
                            hybrid adjustable rate mortgages.
Sec. 104. Termination of collection of loan fees from veterans rated 
                            eligible for compensation at pre-discharge 
                            rating examinations.

                      TITLE II--EDUCATION MATTERS

Sec. 201. Collection of contributions for educational assistance under 
                            Montgomery GI Bill from members of the 
                            Selected Reserve called to active duty.
Sec. 202. Educational assistance under Montgomery GI Bill for members 
                            of the Selected Reserve who aggregate 2 or 
                            more years of active duty service during 
                            any 5-year period.
Sec. 203. Ten-year extension of delimiting period for survivors' and 
                            dependents' educational assistance for 
                            spouses of members who die on active duty.
Sec. 204. Availability of education benefits for payment for national 
                            admissions exams and national exams for 
                            credit at institutions of higher education.

                        TITLE III--OTHER MATTERS

Sec. 301. Availability of administrative and judicial redress for 
                            certain veterans denied opportunity to 
                            compete for Federal employment.
Sec. 302. Extension of biennial report of Advisory Committee on Former 
                            Prisoners of War.
Sec. 303. 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--HOUSING MATTERS

SEC. 101. INCREASE IN MAXIMUM AMOUNT OF HOME LOAN GUARANTY FOR 
              CONSTRUCTION AND PURCHASE OF HOMES AND ANNUAL INDEXING OF 
              AMOUNT.

    (a) Maximum Loan Guaranty Based on 100 Percent of Freddie Mac 
Conforming Loan Rate.--Section 3703(a)(1) is amended by striking 
``$60,000'' each place it appears in subparagraphs (A)(i)(IV) and (B) 
and inserting ``the maximum guaranty amount (as defined in subparagraph 
(C))''.
    (b) Definition.--Such section is further amended by adding at the 
end the following new subparagraph:
    ``(C) In this paragraph, the term `maximum guaranty amount' means 
the dollar amount that is equal to 25 percent of the Freddie Mac 
conforming loan limit limitation determined under section 305(a)(2) of 
the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) 
for a single-family residence, as adjusted for the year involved.''.

SEC. 102. EXTENSION OF AUTHORITY FOR GUARANTEE OF ADJUSTABLE RATE 
              MORTGAGES.

    Section 3707(a) is amended by striking ``during fiscal years 1993, 
1994, and 1995'' and inserting ``during fiscal years 1993 through 
2011''.

SEC. 103. EXTENSION AND IMPROVEMENT OF AUTHORITY FOR GUARANTEE OF 
              HYBRID ADJUSTABLE RATE MORTGAGES.

    (a) Extension of Authority.--Subsection (a) of section 3707A is 
amended by striking ``during fiscal years 2004 and 2005'' and inserting 
``during fiscal years 2004 through 2011''.
    (b) Modification of Interest Rate Adjustment Requirements.--
Subsection (c) of such section is amended--
            (1) by redesignating paragraph (4) as paragraph (5);
            (2) by striking paragraph (3) and inserting the following 
        new paragraphs:
            ``(3) in the case of the initial interest rate adjustment--
                    ``(A) if the initial interest rate remained fixed 
                for less than 5 years, be limited to a maximum increase 
                or decrease of 1 percentage point; or
                    ``(B) if the initial interest rate remained fixed 
                for 5 years or more, be limited to a maximum increase 
                or decrease of such percentage point or points as the 
                Secretary may prescribe;
            ``(4) in the case of any single annual interest rate 
        adjustment after the initial interest rate adjustment, be 
        limited to a maximum increase or decrease of 1 percentage 
        point; and''; and
            (3) in paragraph (5), as so redesignated, 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. 104. 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 II--EDUCATION MATTERS

SEC. 201. COLLECTION OF CONTRIBUTIONS FOR EDUCATIONAL ASSISTANCE UNDER 
              MONTGOMERY GI BILL FROM MEMBERS OF THE SELECTED RESERVE 
              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 of Defense 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 of Defense may collect such amount through 
reductions in basic pay in accordance with paragraph (1) or through 
such other method as the Secretary of Defense considers 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 of Defense 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 of Defense may collect such amount through 
reductions in basic pay in accordance with paragraph (1) or through 
such other method as the Secretary of Defense considers appropriate.''.

SEC. 202. EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL FOR MEMBERS 
              OF THE SELECTED RESERVE WHO AGGREGATE 2 OR MORE YEARS OF 
              ACTIVE DUTY SERVICE DURING ANY 5-YEAR PERIOD.

    (a) Entitlement.--Section 3012(a)(1) is amended--
            (1) in subparagraph (B), by striking ``or'' at the end;
            (2) in subparagraph (C), by adding ``or'' at the end; and
            (3) by inserting after subparagraph (C) the following new 
        subparagraph (D):
                    ``(D) during any five-year period beginning on or 
                after September 11, 2001, and ending on or before June 
                30, 2008, while in the Selected Reserve, serves on 
                active duty in the Armed Forces for one or more periods 
                (whether continuous or otherwise) aggregating not less 
                than two years of service on active duty during such 
                period;''.
    (b) Collection of Contributions.--Section 3012(c), as amended by 
section 201(b) of this Act, is further amended by adding at the end the 
following new paragraph:
    ``(4)(A) In the case of an individual who becomes entitled to basic 
educational assistance under this chapter by reason of subsection 
(a)(1)(D), the Secretary of Defense shall collect from the individual 
an amount equal to $1,200 not later than one year after the completion 
by the individual of the two years of service on active duty providing 
the basis for such entitlement.
    ``(B) An individual described in subparagraph (A) shall not be 
entitled to basic educational assistance as described in that 
subparagraph unless an amount equal to $1,200 is first collected from 
the individual as required under that subparagraph.
    ``(C) The Secretary of Defense may collect amounts under 
subparagraph (A) through reductions in basic pay in accordance with 
paragraph (1) or through such other method as the Secretary of Defense 
considers appropriate.''.
    (c) Duration of Assistance.--Section 3013(b) is amended by striking 
``is entitled to'' and all that follows and inserting the following: 
``is entitled to--
            ``(1) one month of educational assistance benefits under 
        this chapter--
                    ``(A) in the case of an individual described in 
                section 3012(a)(1)(A) of this title, for each month of 
                continuous active duty served by such individual after 
                June 30, 1985, as part of the obligated period of 
                active duty on which such entitlement is based;
                    ``(B) in the case of an individual described in 
                section 3012(a)(1)(B) of this title, for each month of 
                continuous active duty served by such individual after 
                June 30, 1985; or
                    ``(C) in the case of an individual described in 
                section 3012(a)(1)(D) of this title, for each month of 
                active duty served by such individual after September 
                11, 2001, and before July 1, 2008, as part of the 
                aggregate period of active duty on which such 
                entitlement is based; and
            ``(2) one month of educational assistance benefits under 
        this chapter for each four months served by such individual in 
        the Selected Reserve after the applicable date specified in 
        paragraph (1) of this subsection (other than any month in which 
        the individual served on active duty).''.
    (d) Amount of Assistance.--Section 3015 is amended--
            (1) in subsections (a)(1)(D) and (b)(1)(D), by striking 
        ``subsection (h)'' and inserting ``subsection (i)'';
            (2) by redesignating subsection (h) as subsection (i); and
            (3) by inserting after subsection (g) the following new 
        subsection (h):
    ``(h) In the case of an individual entitled to an educational 
assistance allowance under section 3012(a)(1)(D) of this title, the 
amount of the basic educational assistance allowance payable under this 
chapter is the amount determined under subsection (b) of this 
section.''.
    (e) Outreach.--(1) The Secretary concerned shall take actions to 
inform members of the Selected Reserve who are or may become entitled 
to basic educational assistance benefits under chapter 30 of title 38, 
United States Code, as a result of section 3012(a)(1)(D) of such title 
(as amended by subsection (a) of this section) of the minimum service 
requirements for entitlement to such benefits under that chapter and of 
the scope and nature of such benefits.
    (2) In this subsection:
            (A) The term ``Secretary concerned'' has the meaning given 
        such term in section 101(25) of title 38, United States Code.
            (B) The term ``Selected Reserve'' has the meaning given 
        such term in section 3002(4) of title 38, United States Code.

SEC. 203. TEN-YEAR EXTENSION OF DELIMITING PERIOD FOR SURVIVORS' AND 
              DEPENDENTS' EDUCATIONAL ASSISTANCE FOR SPOUSES OF MEMBERS 
              WHO DIE ON ACTIVE DUTY.

    Section 3512(b)(1) is amended--
            (1) in subparagraph (A), by striking ``in subparagraph 
        (B)'' and inserting ``in subparagraph (B) or (C)''; and
            (2) by adding at the end the following new subparagraph:
    ``(C) Notwithstanding subparagraph (A), an eligible person referred 
to in that subparagraph who is made eligible under section 
3501(a)(1)(B) of this title by reason of the death of a person on 
active duty may be afforded educational assistance under this chapter 
during the 20-year period beginning on the date (as determined by the 
Secretary) such person becomes an eligible person within the meaning of 
such section.''.

SEC. 204. AVAILABILITY OF EDUCATION BENEFITS FOR PAYMENT FOR NATIONAL 
              ADMISSIONS EXAMS AND NATIONAL EXAMS FOR CREDIT AT 
              INSTITUTIONS OF HIGHER EDUCATION.

    (a) Covered Exams.--Sections 3452(b) and 3501(a)(5) are each 
amended by adding at the end the following new sentence: ``Such term 
also includes national tests for admission to institutions of higher 
learning or graduate schools (such as the SAT, LSAT, GRE, and GMAT 
exams) and national tests providing an opportunity for course credit at 
institutions of higher learning (such as the AP exam).''.
    (b) Amount of Payment.--
            (1) Chapter 30.--Section 3032 is amended by adding at the 
        end the following new subsection:
    ``(g)(1) Subject to paragraph (3), the amount of educational 
assistance payable under this chapter for a national test for admission 
or national test providing an opportunity for course credit at 
institutions of higher learning described in section 3452(b) of this 
title is the amount of the fee charged for the test.
    ``(2) The number of months of entitlement charged in the case of 
any individual for a test described in paragraph (1) is equal to the 
number (including any fraction) determined by dividing the total amount 
of educational assistance paid such individual for such test by the 
full-time monthly institutional rate of educational assistance, except 
for paragraph (1), such individual would otherwise be paid under 
subsection (a)(1), (b)(1), (d), or (e)(1) of section 3015 of this 
title, as the case may be.
    ``(3) In no event shall payment of educational assistance under 
this subsection for a test described in paragraph (1) exceed the amount 
of the individual's available entitlement under this chapter.''.
            (2) Chapter 32.--Section 3232 is amended by adding at the 
        end the following new subsection:
    ``(d)(1) Subject to paragraph (3), the amount of educational 
assistance payable under this chapter for a national test for admission 
or national test providing an opportunity for course credit at 
institutions of higher learning described in section 3452(b) of this 
title is the amount of the fee charged for the test.
    ``(2) The number of months of entitlement charged in the case of 
any individual for a test described in paragraph (1) is equal to the 
number (including any fraction) determined by dividing the total amount 
of educational assistance paid such individual for such test by the 
full-time monthly institutional rate of educational assistance, except 
for paragraph (1), such individual would otherwise be paid under this 
chapter.
    ``(3) In no event shall payment of educational assistance under 
this subsection for a test described in paragraph (1) exceed the amount 
of the individual's available entitlement under this chapter.''.
            (3) Chapter 34.--Section 3482 is amended by adding at the 
        end the following new subsection:
    ``(i)(1) Subject to paragraph (3), the amount of educational 
assistance payable under this chapter for a national test for admission 
or national test providing an opportunity for course credit at 
institutions of higher learning described in section 3452(b) of this 
title is the amount of the fee charged for the test.
    ``(2) The number of months of entitlement charged in the case of 
any individual for a test described in paragraph (1) is equal to the 
number (including any fraction) determined by dividing the total amount 
of educational assistance paid such individual for such test by the 
full-time monthly institutional rate of educational assistance, except 
for paragraph (1), such individual would otherwise be paid under this 
chapter.
    ``(3) In no event shall payment of educational assistance under 
this subsection for a test described in paragraph (1) exceed the amount 
of the individual's available entitlement under this chapter.''.
            (4) Chapter 35.--Section 3532 is amended by adding at the 
        end the following new subsection:
    ``(g)(1) Subject to paragraph (3), the amount of educational 
assistance payable under this chapter for a national test for admission 
or national test providing an opportunity for course credit at 
institutions of higher learning described in section 3501(a)(5) of this 
title is the amount of the fee charged for the test.
    ``(2) The number of months of entitlement charged in the case of 
any individual for a test described in paragraph (1) is equal to the 
number (including any fraction) determined by dividing the total amount 
of educational assistance paid such individual for such test by the 
full-time monthly institutional rate of educational assistance, except 
for paragraph (1), such individual would otherwise be paid under this 
chapter.
    ``(3) In no event shall payment of educational assistance under 
this subsection for a test described in paragraph (1) exceed the amount 
of the individual's available entitlement under this chapter.''.

                        TITLE III--OTHER MATTERS

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) 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''.

SEC. 302. EXTENSION OF BIENNIAL REPORT OF ADVISORY COMMITTEE ON FORMER 
              PRISONERS OF WAR.

    Section 541(c)(1) is amended by striking ``2003'' and inserting 
``2009''.

SEC. 303. 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.''.
            Amend the title so as to read: ``A bill to amend title 38, 
        United States Code, to improve and extend housing, education, 
        and other benefits under the laws administered by the Secretary 
        of Veterans Affairs, and for other purposes.''.




                                                       Calendar No. 706

108th CONGRESS

  2d Session

                                S. 2486

                          [Report No. 108-352]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           September 20, 2004

        Reported with an amendment and an amendment to the title