[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 677 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 308
114th CONGRESS
   2d Session
                                H. R. 677

                          [Report No. 114-405]

 To amend title 38, United States Code, to provide for annual cost-of-
  living adjustments to be made automatically by law each year in the 
 rates of disability compensation for veterans with service-connected 
disabilities and the rates of dependency and indemnity compensation for 
       survivors of certain service-connected disabled veterans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 3, 2015

Mr. Abraham (for himself and Ms. Titus) introduced the following bill; 
        which was referred to the Committee on Veterans' Affairs

                            February 1, 2016

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out 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 3, 2015]


_______________________________________________________________________

                                 A BILL


 
 To amend title 38, United States Code, to provide for annual cost-of-
  living adjustments to be made automatically by law each year in the 
 rates of disability compensation for veterans with service-connected 
disabilities and the rates of dependency and indemnity compensation for 
       survivors of certain service-connected disabled veterans.


 


    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 ``American Heroes 
COLA Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Expansion of eligibility for medallions.
Sec. 3. Definitions relating to claims for benefits under laws 
                            administered by the Secretary of Veterans 
                            Affairs.
Sec. 4. Quarterly reports on formal and informal claims for benefits 
                            under laws administered by Secretary of 
                            Veterans Affairs.
Sec. 5. Expedited payment of survivor's benefits.
Sec. 6. Priority for processing claims of the Department of Veterans 
                            Affairs.
Sec. 7. Treatment of medical evidence provided by non-Department of 
                            Veterans Affairs medical professionals in 
                            support of claims for disability 
                            compensation.
Sec. 8. Automatic annual increase in rates of disability compensation 
                            and dependency and indemnity compensation.
Sec. 9. Improvement of fiduciaries for veterans.
Sec. 10. Board of Veterans' Appeals video hearings.
Sec. 11. Improvements to authority for performance of medical 
                            disabilities examinations by contract 
                            physicians.
Sec. 12. Pilot program on fully developed appeals.
Sec. 13. Deadline for certification of appeals forms by regional 
                            offices of the Department of Veterans 
                            Affairs.
Sec. 14. Evaluation of backlog of disability claims and appeals of 
                            claims of Department of Veterans Affairs.
Sec. 15. Methods for validating certain World War II Merchant Mariner 
                            service considered to be active service by 
                            the Secretary of Veterans Affairs.
Sec. 16. Designation of American World War II Cities.
Sec. 17. Sense of Congress regarding American veterans disabled for 
                            life.

SEC. 2. EXPANSION OF ELIGIBILITY FOR MEDALLIONS.

    Section 2306(d)(4) of title 38, United States Code, is amended to 
read as follows:
    ``(4)(A) In lieu of furnishing a headstone or marker under this 
subsection to a deceased individual described in subparagraph (B), the 
Secretary may furnish, upon request, a medallion or other device of a 
design determined by the Secretary to signify the deceased individual's 
status as a veteran, to be attached to a headstone or marker furnished 
at private expense.
    ``(B) A deceased individual described in this subsection is an 
individual who--
            ``(i) served in the Armed Forces on or after April 6, 1917; 
        and
            ``(ii) is eligible for a headstone or marker furnished 
        under paragraph (1) (or would be so eligible but for the date 
        of the death of the individual).''.

SEC. 3. DEFINITIONS RELATING TO CLAIMS FOR BENEFITS UNDER LAWS 
              ADMINISTERED BY THE SECRETARY OF VETERANS AFFAIRS.

    (a) Definitions.--
            (1) In general.--Section 5100 of title 38, United States 
        Code, is amended to read as follows:
``Sec. 5100. Definitions
    ``In this chapter:
            ``(1) The term `claimant' means any individual applying 
        for, or submitting a claim for, any benefit under the laws 
        administered by the Secretary.
            ``(2) The term `claim' means a communication in writing 
        requesting a determination of entitlement or evidencing a 
        belief in entitlement to a benefit under the laws administered 
        by the Secretary.
            ``(3) The term `formal claim' means a claim submitted on an 
        application form prescribed by the Secretary.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 51 of such title is further amended by 
        striking the item relating to section 5100 and inserting the 
        following new item:

``5100. Definitions.''.
    (b) Effective Date.--Section 5100 of title 38, United States Code, 
as amended by subsection (a), shall take effect on the date of the 
enactment of this Act and shall apply with respect to a claim submitted 
on or after such date.

SEC. 4. QUARTERLY REPORTS ON FORMAL AND INFORMAL CLAIMS FOR BENEFITS 
              UNDER LAWS ADMINISTERED BY SECRETARY OF VETERANS AFFAIRS.

    (a) Quarterly Reports.--During the five-year period beginning on 
the date of the enactment of this Act, the Secretary shall submit to 
the Committees on Veterans' Affairs of the Senate and House of 
Representatives quarterly reports on formal and informal claims 
submitted to the Secretary. Each such report shall include, for the 
three-month period covered by the report--
            (1) the total number of claims submitted to the Secretary;
            (2) the total number of informal claims submitted to the 
        Secretary;
            (3) the total number of formal claims submitted to the 
        Secretary;
            (4) the total number of forms indicating an intent to file 
        a claim for benefits submitted to the Secretary;
            (5) the total number of claims notification letters that 
        included an invitation to the claimant to submit an additional 
        formal claim that was reasonably raised during the adjudication 
        of the claim for which the notification letter is sent;
            (6) of the claimants who received notification letters 
        described in paragraph (5), the total number who submitted a 
        formal claim in response to the invitation included in the 
        letter;
            (7) the total number of electronically filed claims 
        submitted to the Secretary; and
            (8) the total number of fully-developed claims submitted to 
        the Secretary.
    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of Veterans Affairs should develop a designated form for an 
increase or reopening of a claim that does not require the resubmittal 
of information previously submitted on a formal claim form.
    (c) Definitions.--In this section:
            (1) The terms ``claim'', ``claimant'', and ``formal claim'' 
        have the meanings given such terms in section 5100 of title 38, 
        United States Code, as amended by section 4.
            (2) The term ``informal claim'' means a communication in 
        writing requesting a determination of entitlement or evidencing 
        a belief in entitlement, to a benefit under the laws 
        administered by the Secretary of Veterans Affairs that--
                    (A) is submitted in a format other than on an 
                application form prescribed by the Secretary;
                    (B) indicates an intent to apply for one or more 
                benefits under the laws administered by the Secretary;
                    (C) identifies the benefit sought;
                    (D) is made or submitted by a claimant, his or her 
                duly authorized representative, a Member of Congress, 
                or another person acting on behalf of a claimant who 
                meets the requirements established by the Secretary for 
                such purpose; and
                    (E) may include a report of examination or 
                hospitalization, if the report relates to a disability 
                which may establish such an entitlement.
            (3) The term ``reasonably raised'' with respect to a claim 
        means that evidence of an entitlement to a benefit under the 
        laws administered by the Secretary is inferred or logically 
        placed at issue upon a sympathetic reading of another claim and 
        the record developed with respect to that claim.

SEC. 5. EXPEDITED PAYMENT OF SURVIVOR'S BENEFITS.

    (a) In General.--Section 5101(a)(1) of title 38, United States 
Code, is amended--
            (1) by striking ``A specific'' and inserting ``(A) Except 
        as provided in subparagraph (B), a specific''; and
            (2) by adding at the end the following new subparagraph:
    ``(B)(i) The Secretary may pay benefits under chapters 13 and 15 
and sections 2302, 2307, and 5121 of this title to a survivor of a 
veteran who has not filed a formal claim if the Secretary determines 
that the record contains sufficient evidence to establish the 
entitlement of the survivor to such benefits.
    ``(ii) For purposes of this subparagraph and section 5110 of this 
title, the earlier of the following dates shall be treated as the date 
of the receipt of the survivor's application for benefits described in 
clause (i):
            ``(I) The date on which the survivor of a veteran (or the 
        representative of such a survivor) notifies the Secretary of 
        the death of the veteran through a death certificate or other 
        relevant medical evidence indicating that the death was due to 
        a service-connected or compensable disability.
            ``(II) The head of any other department or agency of the 
        Federal Government notifies the Secretary of the death of the 
        veteran.
    ``(iii) In notifying the Secretary of the death of a veteran as 
described in clause (ii)(I), the survivor (or the representative of 
such a survivor) may submit to the Secretary additional documents 
relating to such death without being required to file a formal 
claim.''.
    (b) Report.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Secretary of Veterans Affairs 
        shall submit to the Committee on Veterans' Affairs of the 
        Senate and the Committee on Veterans' Affairs of the House of 
        Representatives a report on benefits paid pursuant to covered 
        claims.
            (2) Contents.--The report under paragraph (1) shall include 
        the following:
                    (A) The number of covered claims adjudicated during 
                the one-year period preceding the date of the report, 
                disaggregated by the following:
                            (i) Claims in which the claimant claimed 
                        entitlement to compensation on the basis of the 
                        claimant's status as the spouse of a deceased 
                        veteran.
                            (ii) Claims in which the claimant claimed 
                        entitlement to compensation on the basis of the 
                        claimant's status as the child of a deceased 
                        veteran.
                            (iii) Claims in which the claimant claimed 
                        entitlement to compensation on the basis of the 
                        claimant's status as the parent of a deceased 
                        veteran.
                    (B) The number of covered claims that were 
                adjudicated during such period and for which 
                compensation was not awarded, disaggregated by clauses 
                (i) through (iii) of subparagraph (A).
                    (C) A comparison of the accuracy and timeliness of 
                covered claims adjudicated during such period with non-
                covered claims filed by survivors of a veteran.
                    (D) The findings of the Secretary with respect to 
                adjudicating covered claims.
                    (E) Such recommendations as the Secretary may have 
                for legislative or administrative action to improve the 
                adjudication of claims submitted to the Secretary for 
                benefits under chapters 13 and 15 and sections 2302, 
                2307, and 5121 of title 38, United States Code.
            (3) Covered claim defined.--In this subsection, the term 
        ``covered claim'' means a claim covered by section 
        5101(a)(1)(B) of title 38, United States Code, as added by 
        subsection (a).
    (c) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to claims for benefits based on a death occurring on 
or after the date of the enactment of this Act.

SEC. 6. PRIORITY FOR PROCESSING CLAIMS OF THE DEPARTMENT OF VETERANS 
              AFFAIRS.

    (a) In General.--Subchapter I of chapter 51 of title 38, United 
States Code, is amended by adding at the end the following new section:
``Sec. 5109C. Priority for processing claims
    ``(a) Priority.--In processing claims for compensation under this 
chapter, the Secretary shall provide the following claimants with 
priority over other claimants:
            ``(1) Veterans who have attained the age of 70.
            ``(2) Veterans who are terminally ill.
            ``(3) Veterans with life-threatening illnesses.
            ``(4) Homeless veterans (as defined in section 2002 of this 
        title).
            ``(5) Veterans who were awarded the Medal of Honor.
            ``(6) Veterans who are former prisoners of war.
            ``(7) Veterans whose claims are being reviewed again in 
        relation to a previously denied claim relating to military 
        sexual trauma.
            ``(8) Veterans whom the Secretary determines, on a case-by-
        case basis, are seriously or very seriously injured.
            ``(9) Veterans whom the Secretary determines, on a case-by-
        case basis, should be given priority under this section based 
        on an application for good cause established by the Secretary.
    ``(b) Regulations.--The Secretary shall prescribe regulations to 
carry out subsection (a).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
5109B the following new item:

``5109C. Priority for processing claims.''.

SEC. 7. TREATMENT OF MEDICAL EVIDENCE PROVIDED BY NON-DEPARTMENT OF 
              VETERANS AFFAIRS MEDICAL PROFESSIONALS IN SUPPORT OF 
              CLAIMS FOR DISABILITY COMPENSATION.

    (a) Acceptance of Reports of Private Physician Examinations.--
Section 5125 of title 38, United States Code, is amended--
            (1) by striking ``For purposes'' and inserting ``(a) In 
        General.--For purposes''; and
            (2) by adding at the end the following new subsections:
    ``(b) Sufficiency of Evidence.--If a veteran has submitted a 
medical opinion or report of a medical examination administered by a 
private physician in support of the veteran's claim, the Secretary may 
not order a medical examination to be administered by a Department 
physician unless the Secretary provides the veteran with a thorough 
explanation of why the medical opinion or report submitted by the 
veteran was not sufficiently complete and the reason why additional 
medical evidence is necessary.
    ``(c) Sufficiently Complete Defined.--For purposes of a medical 
opinion or report described in subsection (a), the term `sufficiently 
complete' means competent, credible, probative, and containing such 
information as may be required to make a decision on the claim for 
which the medical opinion or report is provided.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to medical evidence submitted after the date that is 
one year after the date of the enactment of this Act.

SEC. 8. AUTOMATIC ANNUAL INCREASE IN RATES OF DISABILITY COMPENSATION 
              AND DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) Indexing to Social Security Increases.--Section 5312 of title 
38, United States Code, is amended by adding at the end the following 
new subsection:
    ``(d)(1) Whenever there is an increase in benefit amounts payable 
under title II of the Social Security Act (42 U.S.C. 401 et seq.) as a 
result of a determination made under section 215(i) of such Act (42 
U.S.C. 415(i)), the Secretary shall, effective on the date of such 
increase in benefit amounts, increase the dollar amounts in effect for 
the payment of disability compensation and dependency and indemnity 
compensation by the Secretary, as specified in paragraph (2), as such 
amounts were in effect immediately before the date of such increase in 
benefit amounts payable under title II of the Social Security Act, by 
the same percentage as the percentage by which such benefit amounts are 
increased.
    ``(2) The dollar amounts to be increased pursuant to paragraph (1) 
are the following:
            ``(A) Wartime disability compensation.--Each of the dollar 
        amounts in effect under section 1114 of this title.
            ``(B) Additional compensation for dependents.--Each of the 
        dollar amounts in effect under section 1115(1) of this title.
            ``(C) Clothing allowance.--The dollar amount in effect 
        under section 1162 of this title.
            ``(D) Dependency and indemnity compensation to surviving 
        spouse.--Each of the dollar amounts in effect under subsections 
        (a) through (d) of section 1311 of such title.
            ``(E) Dependency and indemnity compensation to children.--
        Each of the dollar amounts in effect under sections 1313(a) and 
        1314 of such title.
    ``(3) Whenever there is an increase under paragraph (1) in amounts 
in effect for the payment of disability compensation and dependency and 
indemnity compensation, the Secretary shall publish such amounts, as 
increased pursuant to such paragraph, in the Federal Register at the 
same time as the material required by section 215(i)(2)(D) of the 
Social Security Act (42 U.S.C. 415(i)(2)(D)) is published by reason of 
a determination under section 215(i) of such Act (42 U.S.C. 415(i)).
    ``(4) Each dollar amount increased under paragraph (1), if not a 
whole dollar amount, shall be rounded to the next lower whole dollar 
amount.
    ``(5) The Secretary of Veterans Affairs may adjust 
administratively, consistent with the increases made under subsection 
(a), the rates of disability compensation payable to persons under 
section 10 of Public Law 85-857 (72 Stat. 1263) who have not received 
compensation under chapter 11 of this title.''.
    (b) Effective Date.--Subsection (d) of section 5312 of title 38, 
United States Code, as added by subsection (a) of this section, shall 
take effect on December 1, 2015.

SEC. 9. IMPROVEMENT OF FIDUCIARIES FOR VETERANS.

    (a) Appointment and Supervision.--
            (1) Section 5502 of title 38, United States Code, is 
        amended to read as follows:
``Sec. 5502. Appointment of fiduciaries
    ``(a) Appointment.--Where it appears to the Secretary that the 
interest of the beneficiary would be served thereby, payment of 
benefits under any law administered by the Secretary may be made 
directly to the beneficiary or to a relative or some other fiduciary 
for the use and benefit of the beneficiary, regardless of any legal 
disability on the part of the beneficiary.
    ``(b) Appeals.--(1) If the Secretary determines a beneficiary to be 
mentally incompetent for purposes of appointing a fiduciary under this 
chapter, the Secretary shall provide such beneficiary with a written 
statement detailing the reasons for such determination.
    ``(2) A beneficiary whom the Secretary has determined to be 
mentally incompetent for purposes of appointing a fiduciary under this 
chapter may appeal such determination.
    ``(c) Modification.--(1) A beneficiary for whom the Secretary 
appoints a fiduciary under this chapter may, at any time, request the 
Secretary to--
            ``(A) remove the fiduciary so appointed; and
            ``(B) have a new fiduciary appointed.
    ``(2) The Secretary shall comply with a request under paragraph (1) 
if the Secretary determines that the request is made in good faith 
and--
            ``(A) the fiduciary requested to be removed receives a fee 
        from the beneficiary and a suitable volunteer fiduciary is 
        available to assist the beneficiary; or
            ``(B) the beneficiary provides credible information that 
        the fiduciary requested to be removed is--
                    ``(i) not acting in the interest of the 
                beneficiary; or
                    ``(ii) unable to effectively serve the beneficiary 
                because of an irreconcilable personality conflict or 
                disagreement.
    ``(3) The Secretary shall ensure that any removal or new 
appointment of a fiduciary under paragraph (1) does not delay or 
interrupt the beneficiary's receipt of benefits administered by the 
Secretary.
    ``(d) Independence.--A fiduciary appointed by the Secretary shall 
operate independently of the Department to determine the actions that 
are in the interest of the beneficiary.
    ``(e) Predesignation.--A veteran may predesignate a fiduciary by--
            ``(1) submitting written notice to the Secretary of the 
        predesignated fiduciary; or
            ``(2) submitting a form provided by the Secretary for such 
        purpose.
    ``(f) Appointment of Non-Predesignated Fiduciary.--If a beneficiary 
designates an individual to serve as a fiduciary under subsection (e) 
and the Secretary appoints an individual not so designated as the 
fiduciary for such beneficiary, the Secretary shall notify such 
beneficiary of--
            ``(1) the reason why such designated individual was not 
        appointed; and
            ``(2) the ability of the beneficiary to modify the 
        appointed fiduciary under subsection (c).
    ``(g) Priority of Appointment.--In appointing a fiduciary under 
this chapter, if a beneficiary does not designate a fiduciary pursuant 
to subsection (e), to the extent possible the Secretary shall appoint a 
person who is--
            ``(1) a relative of the beneficiary;
            ``(2) appointed as guardian of the beneficiary by a court 
        of competent jurisdiction; or
            ``(3) authorized to act on behalf of the beneficiary under 
        a durable power of attorney.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 55 of title 38, United States Code, is 
        amended by striking the item relating to section 5502 and 
        inserting the following:

``5502. Appointment of fiduciaries.''.
    (b) Supervision.--
            (1) In general.--Chapter 55 of title 38, United States 
        Code, is amended by inserting after section 5502, as amended by 
        subsection (a)(1), the following new section:
``Sec. 5502A. Supervision of fiduciaries
    ``(a) Commission.--(1)(A) In a case in which the Secretary 
determines that a commission is necessary in order to obtain the 
services of a fiduciary in the best interests of a beneficiary, the 
Secretary may authorize a fiduciary appointed by the Secretary to 
obtain from the monthly benefits provided to the beneficiary a 
reasonable commission for fiduciary services rendered, but the 
commission for any month may not exceed the lesser of the following 
amounts:
            ``(i) The amount that equals three percent of the monthly 
        monetary benefits under laws administered by the Secretary paid 
        on behalf of the beneficiary to the fiduciary.
            ``(ii) $35.
    ``(B) A commission paid under this paragraph may not be derived 
from any award to a beneficiary regarding back pay or retroactive 
benefits payments.
    ``(C) A commission may not be authorized for a fiduciary who 
receives any other form of remuneration or payment in connection with 
rendering fiduciary services for benefits under this title on behalf of 
the beneficiary.
    ``(D) In accordance with section 6106 of this title, a commission 
may not be paid to a fiduciary if the Secretary determines that the 
fiduciary misused any benefit payments of a beneficiary.
    ``(E) If the Secretary determines that the fiduciary has misused 
any benefit or payments of a beneficiary, the Secretary may revoke the 
fiduciary status of the fiduciary.
    ``(2) Where, in the opinion of the Secretary, any fiduciary 
receiving funds on behalf of a Department beneficiary is acting in such 
a number of cases as to make it impracticable to conserve properly the 
estates or to supervise the persons of the beneficiaries, the Secretary 
may refuse to make future payments in such cases as the Secretary may 
deem proper.
    ``(b) Court.--Whenever it appears that any fiduciary, in the 
opinion of the Secretary, is not properly executing or has not properly 
executed the duties of the trust of such fiduciary or has collected or 
paid, or is attempting to collect or pay, fees, commissions, or 
allowances that are inequitable or in excess of those allowed by law 
for the duties performed or expenses incurred, or has failed to make 
such payments as may be necessary for the benefit of the ward or the 
dependents of the ward, then the Secretary may appear, by the 
Secretary's authorized attorney, in the court which has appointed such 
fiduciary, or in any court having original, concurrent, or appellate 
jurisdiction over said cause, and make proper presentation of such 
matters. The Secretary, in the Secretary's discretion, may suspend 
payments to any such fiduciary who shall neglect or refuse, after 
reasonable notice, to render an account to the Secretary from time to 
time showing the application of such payments for the benefit of such 
incompetent or minor beneficiary, or who shall neglect or refuse to 
administer the estate according to law. The Secretary may require the 
fiduciary, as part of such account, to disclose any additional 
financial information concerning the beneficiary (except for 
information that is not available to the fiduciary). The Secretary may 
appear or intervene by the Secretary's duly authorized attorney in any 
court as an interested party in any litigation instituted by the 
Secretary or otherwise, directly affecting money paid to such fiduciary 
under this section.
    ``(c) Payment of Certain Expenses.--Authority is hereby granted for 
the payment of any court or other expenses incident to any 
investigation or court proceeding for the appointment of any fiduciary 
or other person for the purpose of payment of benefits payable under 
laws administered by the Secretary or the removal of such fiduciary and 
appointment of another, and of expenses in connection with the 
administration of such benefits by such fiduciaries, or in connection 
with any other court proceeding hereby authorized, when such payment is 
authorized by the Secretary.
    ``(d) Temporary Payment of Benefits.--All or any part of any 
benefits the payment of which is suspended or withheld under this 
section may, in the discretion of the Secretary, be paid temporarily to 
the person having custody and control of the incompetent or minor 
beneficiary, to be used solely for the benefit of such beneficiary, or, 
in the case of an incompetent veteran, may be apportioned to the 
dependent or dependents, if any, of such veteran. Any part not so paid 
and any funds of a mentally incompetent or insane veteran not paid to 
the chief officer of the institution in which such veteran is a patient 
nor apportioned to the veteran's dependent or dependents may be ordered 
held in the Treasury to the credit of such beneficiary. All funds so 
held shall be disbursed under the order and in the discretion of the 
Secretary for the benefit of such beneficiary or the beneficiary's 
dependents. Any balance remaining in such fund to the credit of any 
beneficiary may be paid to the beneficiary if the beneficiary recovers 
and is found competent, or if a minor, attains majority, or otherwise 
to the beneficiary's fiduciary, or, in the event of the beneficiary's 
death, to the beneficiary's personal representative, except as 
otherwise provided by law; however, payment will not be made to the 
beneficiary's personal representative if, under the law of the 
beneficiary's last legal residence, the beneficiary's estate would 
escheat to the State. In the event of the death of a mentally 
incompetent or insane veteran, all gratuitous benefits under laws 
administered by the Secretary deposited before or after August 7, 1959, 
in the personal funds of patient's trust fund on account of such 
veteran shall not be paid to the personal representative of such 
veteran, but shall be paid to the following persons living at the time 
of settlement, and in the order named: The surviving spouse, the 
children (without regard to age or marital status) in equal parts, and 
the dependent parents of such veteran, in equal parts. If any balance 
remains, such balance shall be deposited to the credit of the 
applicable current appropriation; except that there may be paid only so 
much of such balance as may be necessary to reimburse a person (other 
than a political subdivision of the United States) who bore the 
expenses of last sickness or burial of the veteran for such expenses. 
No payment shall be made under the two preceding sentences of this 
subsection unless claim therefor is filed with the Secretary within 
five years after the death of the veteran, except that, if any person 
so entitled under said two sentences is under legal disability at the 
time of death of the veteran, such five-year period of limitation shall 
run from the termination or removal of the legal disability.
    ``(e) Escheatment.--Any funds in the hands of a fiduciary appointed 
by a State court or the Secretary derived from benefits payable under 
laws administered by the Secretary, which under the law of the State 
wherein the beneficiary had last legal residence would escheat to the 
State, shall escheat to the United States and shall be returned by such 
fiduciary, or by the personal representative of the deceased 
beneficiary, less legal expenses of any administration necessary to 
determine that an escheat is in order, to the Department, and shall be 
deposited to the credit of the applicable revolving fund, trust fund, 
or appropriation.
    ``(f) Assistance.--The Secretary shall provide to a fiduciary 
appointed under section 5502 of this title materials and tools to 
assist the fiduciary in carrying out the responsibilities of the 
fiduciary under this chapter, including--
            ``(1) handbooks, brochures, or other written material that 
        explain the responsibilities of a fiduciary under this chapter;
            ``(2) tools located on an Internet website, including forms 
        to submit to the Secretary required information; and
            ``(3) assistance provided by telephone.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 55 of title 38, United States Code, is 
        amended by inserting after the item relating to section 5502 
        the following new item:

``5502A. Supervision of fiduciaries.''.
    (c) Definition of Fiduciary.--Section 5506 of title 38, United 
States Code, is amended--
            (1) by striking ``For purposes'' and inserting ``(a) For 
        purposes''; and
            (2) by adding at the end the following new subsection:
    ``(b)(1) For purposes of subsection (a), the term `person' includes 
any--
            ``(A) State or local government agency whose mission is to 
        carry out income maintenance, social service, or health care-
        related activities;
            ``(B) any State or local government agency with fiduciary 
        responsibilities; or
            ``(C) any nonprofit social service agency that the 
        Secretary determines--
                    ``(i) regularly provides services as a fiduciary 
                concurrently to five or more individuals; and
                    ``(ii) is not a creditor of any such individual.
    ``(2) The Secretary shall maintain a list of State or local 
agencies and nonprofit social service agencies under paragraph (1) that 
are qualified to act as a fiduciary under this chapter. In maintaining 
such list, the Secretary may consult the lists maintained under section 
807(h) of the Social Security Act (42 U.S.C. 1007(h)).''.
    (d) Qualifications.--Section 5507 of title 38, United States Code, 
is amended to read as follows:
``Sec. 5507. Inquiry, investigations, and qualification of fiduciaries
    ``(a) Investigation.--Any certification of a person for payment of 
benefits of a beneficiary to that person as such beneficiary's 
fiduciary under section 5502 of this title shall be made on the basis 
of--
            ``(1) an inquiry or investigation by the Secretary of the 
        fitness of that person to serve as fiduciary for that 
        beneficiary to be conducted in advance of such certification 
        and in accordance with subsection (b);
            ``(2) adequate evidence that certification of that person 
        as fiduciary for that beneficiary is in the interest of such 
        beneficiary (as determined by the Secretary under regulations);
            ``(3) adequate evidence that the person to serve as 
        fiduciary protects the private information of a beneficiary in 
        accordance with subsection (d)(1); and
            ``(4) the furnishing of any bond that may be required by 
        the Secretary in accordance with subsection (f).
    ``(b) Elements of Investigation.--(1) In conducting an inquiry or 
investigation of a proposed fiduciary under subsection (a)(1), the 
Secretary shall conduct--
            ``(A) a face-to-face interview with the proposed fiduciary 
        by not later than 30 days after the date on which such inquiry 
        or investigation begins; and
            ``(B) a background check of the proposed fiduciary to--
                    ``(i) in accordance with paragraph (2), determine 
                whether the proposed fiduciary has been convicted of a 
                crime; and
                    ``(ii) determine whether the proposed fiduciary 
                will serve the best interest of the beneficiary, 
                including by conducting a credit check of the proposed 
                fiduciary and checking the records under paragraph (5).
    ``(2) The Secretary shall request information concerning whether 
that person has been convicted of any offense under Federal or State 
law. If that person has been convicted of such an offense, the 
Secretary may certify the person as a fiduciary only if the Secretary 
finds that the person is an appropriate person to act as fiduciary for 
the beneficiary concerned under the circumstances.
    ``(3) The Secretary shall conduct the background check described in 
paragraph (1)(B)--
            ``(A) each time a person is proposed to be a fiduciary, 
        regardless of whether the person is serving or has served as a 
        fiduciary; and
            ``(B) at no expense to the beneficiary.
    ``(4) Each proposed fiduciary shall disclose to the Secretary the 
number of beneficiaries that the fiduciary acts on behalf of.
    ``(5) The Secretary shall maintain records of any person who has--
            ``(A) previously served as a fiduciary; and
            ``(B) had such fiduciary status revoked by the Secretary.
    ``(6)(A) If a fiduciary appointed by the Secretary is convicted of 
a crime described in subparagraph (B), the Secretary shall notify the 
beneficiary of such conviction by not later than 14 days after the date 
on which the Secretary learns of such conviction.
    ``(B) A crime described in this subparagraph is a crime--
            ``(i) for which the fiduciary is convicted while serving as 
        a fiduciary for any person;
            ``(ii) that is not included in a report submitted by the 
        fiduciary under section 5509(a) of this title; and
            ``(iii) that the Secretary determines could affect the 
        ability of the fiduciary to act on behalf of the beneficiary.
    ``(c) Investigation of Certain Persons.--(1) In the case of a 
proposed fiduciary described in paragraph (2), the Secretary, in 
conducting an inquiry or investigation under subsection (a)(1), may 
carry out such inquiry or investigation on an expedited basis that may 
include giving priority to conducting such inquiry or investigation. 
Any such inquiry or investigation carried out on such an expedited 
basis shall be carried out under regulations prescribed for purposes of 
this section.
    ``(2) Paragraph (1) applies with respect to a proposed fiduciary 
who is--
            ``(A) the parent (natural, adopted, or stepparent) of a 
        beneficiary who is a minor;
            ``(B) the spouse or parent of an incompetent beneficiary;
            ``(C) a person who has been appointed a fiduciary of the 
        beneficiary by a court of competent jurisdiction;
            ``(D) being appointed to manage an estate where the annual 
        amount of veterans benefits to be managed by the proposed 
        fiduciary does not exceed $3,600, as adjusted pursuant to 
        section 5312 of this title; or
            ``(E) a person who is authorized to act on behalf of the 
        beneficiary under a durable power of attorney.
    ``(d) Protection of Private Information.--(1) A fiduciary shall 
take all reasonable precautions to--
            ``(A) protect the private information of a beneficiary, 
        including personally identifiable information; and
            ``(B) securely conducts financial transactions.
    ``(2) A fiduciary shall notify the Secretary of any action of the 
fiduciary that compromises or potentially compromises the private 
information of a beneficiary.
    ``(e) Potential Misuse of Funds.--(1) If the Secretary has reason 
to believe that a fiduciary may be misusing all or part of the benefit 
of a beneficiary, the Secretary shall--
            ``(A) conduct a thorough investigation to determine the 
        veracity of such belief; and
            ``(B) if such veracity is established, transmit to the 
        officials described in paragraph (2) a report of such 
        investigation.
    ``(2) The officials described in this paragraph are the following:
            ``(A) The Attorney General.
            ``(B) Each head of a Federal department or agency that pays 
        to a fiduciary or other person benefits under any law 
        administered by such department of agency for the use and 
        benefit of a minor, incompetent, or other beneficiary.
    ``(f) Bond.--In determining whether a proposed fiduciary is 
required to furnish a bond under subsection (a)(4), the Secretary shall 
consider--
            ``(1) the existence of any familial or other personal 
        relationship between the proposed fiduciary and the 
        beneficiary; and
            ``(2) the care the proposed fiduciary has taken to protect 
        the interests of the beneficiary.
    ``(g) List of Fiduciaries.--Each regional office of the Veterans 
Benefits Administration shall maintain a list of the following:
            ``(1) The name and contact information of each fiduciary, 
        including address, telephone number, and email address.
            ``(2) With respect to each fiduciary described in paragraph 
        (1)--
                    ``(A) the date of the most recent background check 
                and credit check performed by the Secretary under this 
                section;
                    ``(B) the date that any bond was paid under this 
                section;
                    ``(C) the name, address, and telephone number of 
                each beneficiary the fiduciary acts on behalf of; and
                    ``(D) the amount that the fiduciary controls with 
                respect to each beneficiary described in subparagraph 
                (C).''.
    (e) Annual Receipt of Payments.--
            (1) In general.--Section 5509 of title 38, United States 
        Code, is amended--
                    (A) in subsection (a)--
                            (i) by striking ``may require a fiduciary 
                        to file a'' and inserting ``shall require a 
                        fiduciary to file an annual''; and
                            (ii) by adding at the end the following new 
                        sentence: ``The Secretary shall transmit such 
                        annual report or accounting to the beneficiary 
                        and any legal guardian of such beneficiary.'';
                    (B) by adding at the end the following new 
                subsections:
    ``(c) Matters Included.--Except as provided by subsection (f), an 
annual report or accounting under subsection (a) shall include the 
following:
            ``(1) For each beneficiary that a fiduciary acts on behalf 
        of--
                    ``(A) the amount of the benefits of the beneficiary 
                provided under any law administered by the Secretary 
                accrued during the year, the amount spent, and the 
                amount remaining; and
                    ``(B) if the fiduciary serves the beneficiary with 
                respect to benefits not administered by the Secretary, 
                an accounting of all sources of benefits or other 
                income the fiduciary oversees for the beneficiary.
            ``(2) A list of events that occurred during the year 
        covered by the report that could affect the ability of the 
        fiduciary to act on behalf of the beneficiary, including--
                    ``(A) the fiduciary being convicted of any crime;
                    ``(B) the fiduciary declaring bankruptcy; and
                    ``(C) any judgments entered against the fiduciary.
    ``(d) Random Audits.--The Secretary shall annually conduct random 
audits of fiduciaries who receive a commission pursuant to subsection 
5502A(a)(1) of this title.
    ``(e) Status of Fiduciary.--If a fiduciary includes in the annual 
report events described in subsection (c)(2), the Secretary may take 
appropriate action to adjust the status of the fiduciary as the 
Secretary determines appropriate, including by revoking the fiduciary 
status of the fiduciary.
    ``(f) Caregivers and Certain Other Fiduciaries.--(1)(A) In carrying 
out this section, the Secretary shall ensure that a caregiver fiduciary 
is required only to file an annual report or accounting under 
subsection (a) with respect to the amount of the benefits of the 
beneficiary provided under any law administered by the Secretary--
            ``(i) spent on--
                    ``(I) food and housing for the beneficiary; and
                    ``(II) clothing, health-related expenses, 
                recreation, and other personal items for the 
                beneficiary; and
            ``(ii) saved for the beneficiary.
    ``(B) The Secretary shall coordinate with the Under Secretary for 
Benefits and the Under Secretary for Health to--
            ``(i) minimize the frequency with which employees of the 
        Department visit the home of a caregiver fiduciary and 
        beneficiary; and
            ``(ii) limit the extent of supervision by such Under 
        Secretaries with respect to such a fiduciary and beneficiary.
    ``(C) In this paragraph, the term `caregiver fiduciary' means a 
fiduciary who--
            ``(i) in addition to acting as a fiduciary for a 
        beneficiary, is approved by the Secretary to be a provider of 
        personal care services for the beneficiary under paragraph 
        (3)(A)(i) of section 1720G(a) of this title;
            ``(ii) in carrying out such care services to such 
        beneficiary, has undergone not less than four home visits under 
        paragraph (9)(A) of such section; and
            ``(iii) has not been required by the Secretary to take 
        corrective action pursuant to paragraph (9)(C) of such section.
    ``(2) In carrying out this section, the Secretary may adjust the 
matters required under an annual report or accounting under subsection 
(a) with respect to a fiduciary whom the Secretary determines to have 
effectively protected the interests of the beneficiary over a sustained 
period.''; and
                    (C) by striking the section heading and inserting 
                the following: ``Annual reports and accountings of 
                fiduciaries''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 55 of title 38, United States Code, is 
        amended by striking the item relating to section 5509 and 
        inserting the following new item:

``5509. Annual reports and accountings of fiduciaries.''.
    (f) Repayment of Misused Benefits.--Section 6107(a)(2)(C) of title 
38, United States Code, is amended by inserting before the period the 
following: ``, including by the Secretary not acting in accordance with 
section 5507 of this title''.
    (g) Annual Reports.--Section 5510 of title 38, United States Code, 
is amended by striking ``The Secretary shall include in the Annual 
Benefits Report of the Veterans Benefits Administration or the 
Secretary's Annual Performance and Accountability Report'' and 
inserting ``Not later than July 1 of each year, the Secretary shall 
submit to the Committees on Veterans' Affairs of the House of 
Representatives and the Senate a separate report containing''.
    (h) Report.--Not later than two years after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall submit 
to the Committee on Veterans' Affairs of the Senate and the Committee 
on Veterans' Affairs of the House of Representatives a comprehensive 
report on the implementation of the amendments made by this Act, 
including--
            (1) detailed information on the establishment of new 
        policies and procedures pursuant to such amendments and 
        training provided on such policies and procedures; and
            (2) a discussion of whether the Secretary should provide 
        fiduciaries with standardized financial software to simplify 
        reporting requirements.
    (i) Effective Date.--The amendments made by this section shall take 
effect on the date that is one year after the date of the enactment of 
this Act.

SEC. 10. BOARD OF VETERANS' APPEALS VIDEO HEARINGS.

    Section 7107 of title 38, United States Code, is amended--
            (1) in subsection (d), by amending paragraph (1) to read as 
        follows:
    ``(1)(A) Upon request for a hearing, the Board shall determine, for 
purposes of scheduling the hearing for the earliest possible date, 
whether a hearing before the Board will be held at its principal 
location or at a facility of the Department or other appropriate 
Federal facility located within the area served by a regional office of 
the Department. The Board shall also determine whether to provide a 
hearing through the use of the facilities and equipment described in 
subsection (e)(1) or by the appellant personally appearing before a 
Board member or panel.
    ``(B) The Board shall notify the appellant of the determinations of 
the location and type of hearing made under subparagraph (A). Upon 
notification, the appellant may request a different location or type of 
hearing as described in such subparagraph. If so requested, the Board 
shall grant such request and ensure that the hearing is scheduled at 
the earliest possible date without any undue delay or other prejudice 
to the appellant.''; and
            (2) in subsection (e), by amending paragraph (2) to read as 
        follows:
    ``(2) Any hearing provided through the use of the facilities and 
equipment described in paragraph (1) shall be conducted in the same 
manner as, and shall be considered the equivalent of, a personal 
hearing.''.

SEC. 11. IMPROVEMENTS TO AUTHORITY FOR PERFORMANCE OF MEDICAL 
              DISABILITIES EXAMINATIONS BY CONTRACT PHYSICIANS.

    (a) Extension of Temporary Authority.--Subsection (c) of section 
704 of the Veterans Benefits Act of 2003 (38 U.S.C. 5101 note) is 
amended by striking ``December 31, 2015'' and inserting ``December 31, 
2017''.
    (b) Licensure of Contract Physicians.--
            (1) Temporary authority.--Such section 704 is further 
        amended--
                    (A) by redesignating subsection (d) as subsection 
                (e); and
                    (B) by inserting after subsection (c) the following 
                new subsection (d):
    ``(d) Licensure of Contract Physicians.--
            ``(1) In general.--Notwithstanding any law regarding the 
        licensure of physicians, a physician described in paragraph (2) 
        may conduct an examination pursuant to a contract entered into 
        under subsection (b) at any location in any State, the District 
        of Columbia, or a Commonwealth, territory, or possession of the 
        United States, so long as the examination is within the scope 
        of the authorized duties under such contract.
            ``(2) Physician described.--A physician described in this 
        paragraph is a physician who--
                    ``(A) has a current unrestricted license to 
                practice the health care profession of the physician;
                    ``(B) is not barred from practicing such health 
                care profession in any State, the District of Columbia, 
                or a Commonwealth, territory, or possession of the 
                United States; and
                    ``(C) is performing authorized duties for the 
                Department of Veterans Affairs pursuant to a contract 
                entered into under subsection (b).''.
            (2) Pilot program.--Section 504 of the Veterans' Benefits 
        Improvement Act of 1996 (38 U.S.C. 5101 note) is amended--
                    (A) by redesignating subsections (c) and (d) as 
                subsections (d) and (e), respectively; and
                    (B) by inserting after subsection (b) the following 
                new subsection (c):
    ``(c) Licensure of Contract Physicians.--
            ``(1) In general.--Notwithstanding any law regarding the 
        licensure of physicians, a physician described in paragraph (2) 
        may conduct an examination pursuant to a contract entered into 
        under subsection (a) at any location in any State, the District 
        of Columbia, or a Commonwealth, territory, or possession of the 
        United States, so long as the examination is within the scope 
        of the authorized duties under such contract.
            ``(2) Physician described.--A physician described in this 
        paragraph is a physician who--
                    ``(A) has a current unrestricted license to 
                practice the health care profession of the physician;
                    ``(B) is not barred from practicing such health 
                care profession in any State, the District of Columbia, 
                or a Commonwealth, territory, or possession of the 
                United States; and
                    ``(C) is performing authorized duties for the 
                Department of Veterans Affairs pursuant to a contract 
                entered into under subsection (a).''.

SEC. 12. PILOT PROGRAM ON FULLY DEVELOPED APPEALS.

    (a) In General.--The Secretary of Veterans Affairs shall carry out 
a pilot program to provide the option of an alternative appeals process 
that shall more quickly determine such appeals in accordance with this 
section.
    (b) Election.--
            (1) Filing.--In accordance with paragraph (2), a claimant 
        may elect to file a fully developed appeal under the pilot 
        program under subsection (a) by filing with the Secretary the 
        following:
                    (A) The notice of disagreement under chapter 71 of 
                title 38, United States Code, along with the written 
                election of the claimant to have the appeal determined 
                under the pilot program.
                    (B) All evidence that the claimant believes is 
                needed for the appeal as of the date of the filing.
                    (C) A statement of the argument in support of the 
                claim, if any.
            (2) Timing.--A claimant shall make an election under 
        paragraph (1) as part of the notice of disagreement filed by 
        the claimant in accordance with paragraph (1)(A).
            (3) Reversion.--
                    (A) At any time, a claimant who makes an election 
                under paragraph (1) may elect to revert to the standard 
                appeals process. Such a reversion shall be final.
                    (B) A claimant described in subparagraph (A), or a 
                claimant who makes an election under paragraph (1) but 
                is later determined to be ineligible for the pilot 
                program under subsection (a), shall revert to the 
                standard appeals process without any penalty to the 
                claimant other than the loss of the docket number 
                associated with the fully developed appeal.
            (4) Outreach.--In providing claimants with notices of the 
        determination of a claim during the period in which the pilot 
        program under subsection (a) is carried out, the Secretary 
        shall conduct outreach as follows:
                    (A) The Secretary shall provide to the claimant 
                (and to the representative of record of the claimant, 
                if any) information regarding--
                            (i) the pilot program, including the 
                        advantages and disadvantages of the program;
                            (ii) how to make an election under 
                        paragraph (1);
                            (iii) the limitation on the use of new 
                        evidence described in paragraph (3) of 
                        subsection (c) and the development of 
                        information under paragraph (4) of such 
                        subsection; and
                            (iv) the ability of the claimant to seek 
                        advice and education regarding such process 
                        from veterans service organizations, attorneys, 
                        and claims agents recognized under chapter 59 
                        of title 38, United States Code.
                    (B) The Secretary shall collaborate, partner with, 
                and give weight to the advice of the three veterans 
                service organizations with the most members to publish 
                on the Internet website of the Department of Veterans 
                Affairs an online tutorial explaining the advantages 
                and disadvantages of the pilot program.
    (c) Treatment by Department and Board.--
            (1) Process.--Upon the election of a claimant to file a 
        fully developed appeal pursuant to subsection (b)(1), the 
        Secretary shall--
                    (A) not provide the claimant with a statement of 
                the case nor require the claimant to file a substantive 
                appeal; and
                    (B) transfer jurisdiction over the fully developed 
                appeal directly to the Board of Veterans' Appeals.
            (2) Docket.--
                    (A) The Board of Veterans' Appeals shall--
                            (i) maintain fully developed appeals on a 
                        separate docket than standard appeals;
                            (ii) decide fully developed appeals in the 
                        order that the fully developed appeals are 
                        received on the fully developed appeal docket;
                            (iii) except as provided by subparagraph 
                        (B), decide not more than one fully developed 
                        appeal for each four standard appeals decided; 
                        and
                            (iv) to the extent practicable, decide each 
                        fully developed appeal by the date that is one 
                        year following the date on which the claimant 
                        files the notice of disagreement.
                    (B) Beginning one year after the date on which the 
                pilot program under subsection (a) commences, the Board 
                may adjust the number of standard appeals decided for 
                each fully developed appeal under subparagraph (A)(iii) 
                if the Board determines that such adjustment is fair 
                for both standard appeals and fully developed appeals.
            (3) Limitation on use of new evidence.--
                    (A) Except as provided by subparagraphs (B) and 
                (C)--
                            (i) a claimant may not submit or identify 
                        to the Board of Veterans' Appeals any new 
                        evidence relating to a fully developed appeal 
                        after filing such appeal unless the claimant 
                        reverts to the standard appeals process 
                        pursuant to subsection (b)(3); and
                            (ii) if a claimant submits or identifies 
                        any such new evidence, such submission or 
                        identification shall be deemed to be an 
                        election to make such a reversion pursuant to 
                        subsection (b)(3).
                    (B) Subparagraph (A) shall not apply to evidence 
                developed pursuant to paragraphs (4) and (5). The Board 
                shall consider such evidence in the first instance 
                without consideration by the Veterans Benefits 
                Administration.
                    (C) The representative of record of a claimant for 
                appeals purposes, if any, shall be provided an 
                opportunity to review the fully developed appeal of the 
                claimant and submit any additional arguments or 
                evidence that the representative determines necessary 
                during a period specified by the Board for purposes of 
                this subparagraph.
            (4) Prohibition on remand for additional development.--If 
        the Board of Veterans' Appeals determines that a fully 
        developed appeal requires Federal records, independent medical 
        opinions, or new medical examinations, the Board shall--
                    (A) in accordance with paragraph (5), take such 
                actions as may be necessary to develop such records, 
                opinions, or examinations in accordance with section 
                5103A of title 38, United States Code;
                    (B) retain jurisdiction of the fully developed 
                appeal without requiring a determination by the 
                Veterans Benefits Administration based on such records, 
                opinions, or examinations;
                    (C) ensure the claimant, and the representative of 
                record of a claimant, if any, receives a copy of such 
                records, opinions, or examinations; and
                    (D) provide the claimant a period of 90 days after 
                the date of mailing such records, opinions, or 
                examinations during which the claimant may provide the 
                Board any additional evidence without requiring the 
                claimant to make a reversion pursuant to subsection 
                (b)(3).
            (5) Development unit.--
                    (A) The Board of Veterans' Appeals shall establish 
                an office to develop Federal records, independent 
                medical opinions, and new medical examinations pursuant 
                to paragraph (4)(A) that the Board determines necessary 
                to decide a fully developed appeal.
                    (B) The Secretary shall--
                            (i) ensure that the Veterans Benefits 
                        Administration cooperates with the Board of 
                        Veterans' Appeals in carrying out subparagraph 
                        (A); and
                            (ii) transfer employees of the Veterans 
                        Benefits Administration who, prior to the 
                        enactment of this Act, were responsible for 
                        processing claims remanded by the Board of 
                        Veterans' Appeals to positions within the 
                        office of the Board established under 
                        subparagraph (A) in a number the Secretary 
                        determines sufficient to carry out such 
                        subparagraph.
            (6) Hearings.--Notwithstanding section 7107 of title 38, 
        United States Code, the Secretary may not provide hearings with 
        respect to fully developed appeals. If a claimant requests to 
        hold a hearing pursuant to such section 7107, such request 
        shall be deemed to be an election to revert to the standard 
        appeals process pursuant to subsection (b)(3).
    (d) Duration; Application.--The Secretary shall carry out the pilot 
program under subsection (a) for a five-year period beginning one year 
after the date of the enactment of this Act. This section shall apply 
only to fully developed appeals that are filed during such period.
    (e) Reports.--During each year in which the pilot program under 
subsection (a) is carried out, the Secretary shall submit to the 
Committees on Veterans' Affairs of the House of Representatives and the 
Senate a report on the pilot program. The first such report shall be 
submitted by not later than 180 days after the date on which the pilot 
program commences. Each report shall include the following:
            (1) For the period covered by the report--
                    (A) the number of claimants who filed a fully 
                developed appeal under the pilot program;
                    (B) the average processing time for each such 
                appeal, measured by each phase of the appeal, and, if 
                the processing time for appeals exceed one year, the 
                reasons for such processing time;
                    (C) a summary of reasons for which the development 
                of evidence was required under subsection (c)(5);
                    (D) the number of issues decided, listed by the 
                disposition of the issue;
                    (E) of the number identified in subparagraph (D), 
                the number of issues for which evidence was not so 
                developed, listed by the disposition of the issue;
                    (F) of the number of fully developed appeals 
                decided by the Board of Veterans' Appeals, the number 
                of cases from each agency of original jurisdiction, 
                listed by the disposition of the issue;
                    (G) the number of fully developed appeals appealed 
                to the Court of Appeals for Veterans Claims, listed by 
                the disposition of the case;
                    (H) the number of reversions made under subsection 
                (b)(3); and
                    (I) any reasons for why a claimant was determined 
                to be ineligible to participate in the pilot program.
            (2) A review, made in conjunction with veterans service 
        organizations, of the efforts of the Secretary to provide clear 
        rating decisions and improve disability rating notification 
        letters, including with respect to--
                    (A) the opinions of veterans service organizations 
                regarding such efforts; and
                    (B) how the pilot program improves such efforts.
            (3) A recommendation for any changes to improve the pilot 
        program.
            (4) An assessment of the feasibility and advisability of 
        expanding the pilot program.
    (f) Regulations.--Not later than one day after the date of the 
enactment of this Act, the Secretary shall publish interim guidance on 
the pilot program under subsection (a). Not later than 90 days after 
such date of enactment, the Secretary shall prescribe regulations to 
carry out such pilot program.
    (g) Definitions.--In this section:
            (1) The term ``claimant'' has the meaning given that term 
        in section 5100 of title 38, United States Code.
            (2) The term ``compensation'' has the meaning given that 
        term in section 101 of title 38, United States Code.
            (3) The term ``fully developed appeal'' means an appeal of 
        a claim for disability compensation that is--
                    (A) filed by a claimant in accordance with 
                subsection (b)(1); and
                    (B) considered in accordance with this section.
            (4) The term ``standard appeal'' means an appeal of a claim 
        for disability compensation that is not a fully developed 
        appeal.

SEC. 13. DEADLINE FOR CERTIFICATION OF APPEALS FORMS BY REGIONAL 
              OFFICES OF THE DEPARTMENT OF VETERANS AFFAIRS.

    The Secretary of Veterans Affairs shall take such steps as may be 
necessary to ensure that when a regional office of the Department of 
Veterans Affairs receives a form known as ``VA Form 9, Appeal to Board 
of Veterans' Appeals'', or any successor form, submitted by a veteran 
to appeal a decision relating to a claim, the regional office certifies 
such form by not later than one year after the date of the receipt of 
the form.

SEC. 14. EVALUATION OF BACKLOG OF DISABILITY CLAIMS AND APPEALS OF 
              CLAIMS OF DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--There is established a commission or task force to 
evaluate the backlog of claims within the Department of Veterans 
Affairs and the appeals process of claims.
    (b) Studies.--
            (1) Backlog study.--
                    (A) In general.--The Commission or Task Force, 
                acting through the subcommittee described in subsection 
                (d)(2)(A), shall carry out a study on the backlog of 
                claims, including the current process the Secretary of 
                Veterans Affairs uses to evaluate claims and appeals 
                and the laws and regulations applicable to such claims 
                and appeals. Such study shall be a comprehensive 
                evaluation and assessment of the backlog of claims, an 
                analysis of possible improvements to the procedures 
                used to process such claims, and any related issues 
                that the Commission or Task Force considers relevant.
                    (B) Matters included.--In carrying out the study 
                under subparagraph (A), the Commission or Task Force 
                shall examine the following:
                            (i) The backlog of claims, including an 
                        analysis of--
                                    (I) the most effective means to 
                                quickly and accurately resolve all 
                                claims pending as of the date of the 
                                study; and
                                    (II) with respect to the 
                                Department, the annual funding, number 
                                of full-time employees, workload 
                                management practices, and the progress, 
                                as of the date of the study, of the 
                                strategic plan.
                            (ii) Possible improvements to the claims 
                        process, including an evaluation and 
                        recommendations with respect to whether 
                        substantive and structural changes to the 
                        overall claims process are required.
                            (iii) In carrying out the evaluation and 
                        recommendations under subparagraph (B), an 
                        examination of--
                                    (I) options that make no major 
                                substantive changes to the claims 
                                process;
                                    (II) options that maintain the 
                                process but make minor changes; and
                                    (III) options that make broad 
                                changes to the process.
            (2) Appeals process study.--
                    (A) In general.--The Commission or Task Force, 
                acting through the subcommittee described in subsection 
                (d)(2)(B), shall carry out a study on the anticipated 
                increase of appeals of claims, including the current 
                appeals process and the laws and regulations applicable 
                to such appeals. Such study shall be a comprehensive 
                evaluation and assessment of such anticipated increase 
                of appeals claims, an analysis of possible improvements 
                to the procedures used to process such appeals, and any 
                related issues that the Commission or Task Force 
                considers relevant.
                    (B) Matters included.--In carrying out the study 
                under subparagraph (A), the Commission or Task Force 
                shall examine the following:
                            (i) The anticipated surge in appeals of 
                        claims, including an analysis of--
                                    (I) the most effective means to 
                                quickly and accurately resolve pending 
                                appeals and future appeals;
                                    (II) with respect to both the Board 
                                and the Court of Appeals for Veterans 
                                Claims, the annual funding, number of 
                                full-time employees, workload 
                                management practices, and the progress, 
                                as of the date of the study, of the 
                                strategic plan; and
                                    (III) the efficiency, 
                                effectiveness, and utility of the 
                                Veterans Benefits Management System 
                                with respect to appeals operations, 
                                including an identification of key 
                                changes that may need to be implemented 
                                to such system.
                            (ii) Possible improvements to the appeals 
                        process, including an evaluation and 
                        recommendations with respect to whether 
                        substantive and structural changes to the 
                        overall appeals process are required.
                            (iii) In carrying out the evaluation and 
                        recommendations under clause (ii), an 
                        examination of--
                                    (I) options that make no major 
                                substantive changes to the appeals 
                                process;
                                    (II) options that maintain the 
                                process but make minor changes;
                                    (III) options that make broad 
                                changes to the process;
                                    (IV) the necessity of the multi-
                                tiered levels of appeals at the 
                                regional office level, including filing 
                                a notice of disagreement, receipt of a 
                                statement of the case, supplemental 
                                statement of the case (if applicable), 
                                and substantive appeal (VA Form 9);
                                    (V) the role of the Board and the 
                                Appeals Management Center, including--
                                            (aa) the effectiveness of 
                                        the workload management of the 
                                        Board and the Center;
                                            (bb) whether the Board and 
                                        Center should be regionalized 
                                        or maintain the centralized 
                                        structure in the District of 
                                        Columbia;
                                            (cc) whether Board members 
                                        should be required to pass the 
                                        administrative law judges 
                                        certification examination; and
                                            (dd) whether the Board 
                                        should continue to require de 
                                        novo review of appeals; and
                                    (VI) the role of the Court of 
                                Appeals for Veterans Claims and the 
                                United States Court of Appeals for the 
                                Federal Circuit, including--
                                            (aa) the continued 
                                        effectiveness and necessity of 
                                        a multi-tiered structure of 
                                        judicial review;
                                            (bb) whether the Court of 
                                        Appeals for Veterans Claims 
                                        should have Article I or 
                                        Article III status;
                                            (cc) expansion of either 
                                        the Court of Appeals for 
                                        Veterans Claims or the United 
                                        States Court of Appeals for the 
                                        Federal Circuit jurisdiction, 
                                        including by allowing such 
                                        courts to hear class action 
                                        lawsuits with respect to 
                                        claims; and
                                            (dd) the possibility of 
                                        expanding judicial review of 
                                        claims to all Federal circuit 
                                        courts of appeals or allowing 
                                        judicial review beyond the 
                                        Court of Appeals for Veterans 
                                        Claims only by the Supreme 
                                        Court.
            (3) Consideration.--In carrying out the studies under 
        paragraph (1)(A) and (2)(A) and making any recommendations 
        under this section, the Commission or Task Force shall consider 
        the following:
                    (A) The interests of veterans, including with 
                respect to accuracy, fairness, and transparency in the 
                claims process of the Department.
                    (B) The values and requirements of the 
                Constitution, including with respect to compliance with 
                procedural and substantive due process.
                    (C) The public interest, including with respect to 
                the responsible use of available resources.
                    (D) With respect to the study conducted under 
                paragraph (1)(A), the importance of the claimant 
                friendly, nonadversarial nature of the claims process.
                    (E) With respect to the study conducted under 
                paragraph (2)(A), the importance of an appeals process 
                that is efficient and easily understandable by a 
                claimant.
            (4) Role of secretary, chairman of the board, and chief 
        judge.--
                    (A) Information.--In carrying out each study under 
                paragraph (1)(A) and (2)(A), at times that the 
                Commission or Task Force determines appropriate, the 
                Commission or Task Force shall submit to the Secretary 
                of Veterans Affairs, the Chairman of the Board, and the 
                Chief Judge of the Court of Appeals for Veterans 
                Claims, as the case may be, information with respect to 
                remedies and solutions that the Commission or Task 
                Force identifies pursuant to such a study.
                    (B) Implementation.--The Secretary, the Chairman of 
                the Board, and the Chief Judge shall each--
                            (i) fully consider the remedies and 
                        solutions submitted to the Secretary, the 
                        Chairman, or the Chief Judge, as the case may 
                        be, under subparagraph (A);
                            (ii) implement such remedies and solutions 
                        as the Secretary, the Chairman, or the Chief 
                        Judge, respectively, determines appropriate; 
                        and
                            (iii) submit to Congress justification for 
                        failing to implement any such remedy or 
                        solution.
                    (C) Plan.--The Commission or Task Force shall 
                submit to the Secretary, the Chairman of the Board, and 
                the Chief Judge a feasible, timely, and cost-effective 
                plan to eliminate the backlog of appeals of claims 
                based on the remedies and solutions identified pursuant 
                to the study under paragraph (2)(A) and the information 
                submitted under subparagraph (A).
    (c) Comprehensive Reports.--
            (1) Initial comprehensive report.--Not later than 60 days 
        after the date on which the Commission or Task Force first 
        meets, the Commission or Task Force shall submit to the 
        President and Congress an initial comprehensive report on the 
        studies conducted under paragraphs (1)(A) and (2)(A) of 
        subsection (b), including--
                    (A) the findings of the causes of the backlog of 
                claims;
                    (B) a proposed plan to handle the anticipated surge 
                in appeals of claims; and
                    (C) the level of cooperation the Commission or Task 
                Force has received from the Secretary and the heads of 
                other departments or agencies of the Federal 
                Government.
            (2) Interim comprehensive reports.--Not later than 90 days 
        after the date on which the Commission or Task Force first 
        meets, and each 30-day period thereafter ending on the date on 
        which the Commission or Task Force submits the final 
        comprehensive report under paragraph (3), the Commission or 
        Task Force shall submit to the President and Congress a 
        comprehensive report on--
                    (A) the progress of the Secretary with respect to 
                implementing solutions to expedite the elimination of 
                the backlog of claims pursuant to subsection 
                (b)(4)(B)(ii);
                    (B) the progress of the Secretary, the Chairman of 
                the Board, and the Chief Judge of the Court of Appeals 
                for Veterans Claims with respect to implementing 
                solutions to complete appeals of claims in a timely 
                manner in a timely manner pursuant to such subsection; 
                and
                    (C) the level of cooperation the Commission or Task 
                Force has received from the Secretary and the heads of 
                other departments or agencies of the Federal 
                Government.
            (3) Final comprehensive report.--Not later than 180 days 
        after the date on which the Commission or Task Force first 
        meets, the Commission or Task Force shall submit to the 
        President and Congress a comprehensive report on the following:
                    (A) With respect to the study conducted under 
                subsection (b)(1)(A)--
                            (i) The findings, conclusions, and 
                        recommendations of the Commission or Task Force 
                        with respect to the matters referred to in such 
                        subsection.
                            (ii) The recommendations of the Commission 
                        or Task Force for revising and improving the 
                        backlog of claims and the procedures used to 
                        process claims.
                            (iii) The progress of the Secretary with 
                        respect to implementing solutions to expedite 
                        the elimination of the backlog of claims 
                        pursuant to subsection (b)(4)(B)(ii).
                            (iv) Other information and recommendations 
                        with respect to claims as the Commission or 
                        Task Force considers appropriate.
                    (B) With respect to the study conducted under 
                subsection (b)(2)(A)--
                            (i) The findings, conclusions, and 
                        recommendations of the Commission or Task Force 
                        with respect to the matters referred to in such 
                        subsection.
                            (ii) The recommendations of the Commission 
                        or Task Force for revising and improving the 
                        appeals process;
                            (iii) The information described in 
                        subsection (b)(4)(A).
                            (iv) The feasible, timely, and cost 
                        effective plan described in subsection 
                        (b)(4)(C).
                            (v) The progress of the Secretary, the 
                        Chairman of the Board, and the Chief Judge of 
                        the Court of Appeals for Veterans Claims with 
                        respect to implementing solutions to provide 
                        timely appeals of claims.
                            (vi) Other information and recommendations 
                        with respect to the appeals process as the 
                        Commission or Task Force considers appropriate.
    (d) Membership.--
            (1) Number and appointment.--The Commission or Task Force 
        shall be composed of 15 members, appointed as follows:
                    (A) Two members appointed by the Speaker of the 
                House of Representatives, one of whom shall be 
                designated to serve upon the Subcommittee on the 
                Backlog of Claims and one of whom shall be designated 
                to serve upon the Subcommittee on Appeals.
                    (B) Two members appointed by the minority leader of 
                the House of Representatives, one of whom shall be 
                designated to serve upon the Subcommittee on the 
                Backlog of Claims and one of whom shall be designated 
                to serve upon the Subcommittee on Appeals.
                    (C) Two members appointed by the majority leader of 
                the Senate, one of whom shall be designated to serve 
                upon the Subcommittee on the Backlog of Claims and one 
                of whom shall be designated to serve upon the 
                Subcommittee on Appeals.
                    (D) Two members appointed by the minority leader of 
                the Senate, one of whom shall be designated to serve 
                upon the Subcommittee on the Backlog of Claims and one 
                of whom shall be designated to serve upon the 
                Subcommittee on Appeals.
                    (E) Three members appointed by the President, two 
                of whom shall be designated to serve upon the 
                Subcommittee on the Backlog of Claims and one of whom 
                shall be designated to serve upon the Subcommittee on 
                Appeals.
                    (F) One member appointed by the Secretary of 
                Defense, whom shall be designated to serve upon the 
                Subcommittee on the Backlog of Claims.
                    (G) Two members appointed by the Secretary of 
                Veterans Affairs, one of whom shall be designated to 
                serve upon the Subcommittee on the Backlog of Claims 
                and one of whom shall be designated to serve upon the 
                Subcommittee on Appeals.
                    (H) One member appointed by the Chief Judge of the 
                Court of Appeals for Veterans Claims, whom shall be 
                designated to serve upon the Subcommittee on Appeals.
            (2) Subcommittees.--The Commission or Task Force shall have 
        two subcommittees as follows:
                    (A) A Subcommittee on the Backlog of Claims 
                consisting of the eight members designated in 
                accordance with paragraph (1).
                    (B) A Subcommittee on Appeals consisting of the 
                seven members designated in accordance with paragraph 
                (1).
            (3) Qualifications.--Each member appointed under paragraph 
        (1) shall be appointed based on the experience of the member as 
        a veteran or on the subject matter expertise or other relevant 
        experience of the member.
            (4) Advisors.--
                    (A) In general.--In addition to the 15 members 
                appointed under paragraph (1), the Commission or Task 
                Force shall--
                            (i) have five nonvoting, nonmember 
                        advisors, appointed by a majority of the 
                        Commission or Task Force, each from a different 
                        organization that represents the interests of 
                        veterans; and
                            (ii) seek advice from experts from 
                        nongovernmental organizations (including 
                        veterans service organizations and military 
                        organizations), the Internet technology 
                        industry, and the insurance industry.
                    (B) Advice.--Individuals described in clause (i) 
                and (ii) of subparagraph (A) shall provide advice to 
                both subcommittees described in paragraph (2).
            (5) Chairman.--The President shall designate a member of 
        the Commission or Task Force who is appointed by the President 
        and designated to serve upon the Subcommittee on the Backlog of 
        Claims to serve as the chairman of the Commission or Task 
        Force. The chairman may designate a member to serve as the 
        chairman of the Subcommittee on the Backlog of Claims and a 
        member to serve as the chairman of the Subcommittee on Appeals 
        to chair such subcommittees as the designee of the chairman of 
        the Commission or Task Force.
            (6) Period of appointment.--Members of the Commission or 
        Task Force shall be appointed for the life of the Commission or 
        Task Force. A vacancy shall not affect its powers.
            (7) Vacancy.--A vacancy on the Commission or Task Force 
        shall be filled in the manner in which the original appointment 
        was made.
            (8) Appointment deadline.--The appointment of members of 
        the Commission or Task Force established in this section shall 
        be made not later than 15 days after the date of the enactment 
        of this Act.
    (e) Meetings.--
            (1) Initial meeting.--The Commission or Task Force shall 
        hold its first meeting not later than 15 days after the date on 
        which a majority of the members are appointed.
            (2) Meetings.--The Commission or Task Force shall meet at 
        the call of the chairman.
            (3) Quorum.--A majority of the members of the Commission or 
        Task Force shall constitute a quorum, but a lesser number may 
        hold hearings.
    (f) Powers of the Commission or Task Force.--
            (1) Hearings.--The Commission or Task Force may hold such 
        hearings, sit and act at such times and places, take such 
        testimony, and receive such evidence as the Commission or Task 
        Force considers advisable to carry out the purposes of this 
        section.
            (2) Information from federal agencies.--The Commission or 
        Task Force may secure directly from any department or agency of 
        the Federal Government such information as the Commission or 
        Task Force considers necessary to carry out the provisions of 
        this section. Upon request of the chairman, the head of such 
        department or agency shall furnish such information to the 
        Commission or Task Force.
            (3) Postal services.--The Commission or Task Force may use 
        the United States mails in the same manner and under the same 
        conditions as other departments and agencies of the Federal 
        Government.
            (4) Gifts.--The Commission or Task Force may accept, use, 
        and dispose of gifts or donations of service or property.
    (g) Personnel Matters.--
            (1) Compensation of members.--Each member of the Commission 
        or Task Force who is not an officer or employee of the United 
        States shall be compensated at a rate equal to the daily 
        equivalent of the annual rate of basic pay prescribed for level 
        IV of the Executive Schedule under section 5315 of title 5, 
        United States Code, for each day (including travel time) during 
        which the member is engaged in the performance of the duties of 
        the Commission or Task Force. All members of the Commission or 
        Task Force who are officers or employees of the United States 
        shall serve without compensation in addition to that received 
        for their services as officers or employees of the United 
        States.
            (2) Travel expenses.--The members of the Commission or Task 
        Force shall be allowed travel expenses, including per diem in 
        lieu of subsistence, at rates authorized for employees of 
        agencies under subchapter I of chapter 57 of title 5, United 
        States Code, while away from their homes or regular places of 
        business in the performance of service of the Commission or 
        Task Force.
            (3) Staff.--
                    (A) Appointment.--The chairman of the Commission or 
                Task Force may, without regard to the civil service 
                laws and regulations, appoint an executive director and 
                such other personnel as may be necessary to enable the 
                Commission or Task Force to perform its duties. The 
                appointment of an executive director shall be subject 
                to the approval of the Commission or Task Force.
                    (B) Compensation.--The chairman of the Commission 
                or Task Force may fix the compensation of the executive 
                director and other personnel without regard to the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of title 5, United States Code, relating to 
                classification of positions and General Schedule pay 
                rates, except that the rate of pay for the executive 
                director and other personnel may not exceed the rate 
                payable for level V of the Executive Schedule under 
                section 5316 of such title.
            (4) Detail of government employees.--Upon request of the 
        chairman of the Commission or Task Force, the head of any 
        department or agency of the Federal Government may detail, on a 
        nonreimbursable basis, any personnel of that department or 
        agency to the Commission or Task Force to assist it in carrying 
        out its duties.
            (5) Procurement of temporary and intermittent services.--
        The chairman of the Commission or Task Force may procure 
        temporary and intermittent services under section 3109(b) of 
        title 5, United States Code, at rates for individuals which do 
        not exceed the daily equivalent of the annual rate of basic pay 
        prescribed for level V of the Executive Schedule under section 
        5316 of such title.
    (h) Termination of Commission or Task Force.--The Commission or 
Task Force shall terminate 60 days after the date on which the 
Commission or Task Force submits the final comprehensive report under 
subsection (c)(3).
    (i) Funding.--
            (1) In general.--The Secretary shall, upon the request of 
        the chairman of the Commission or Task Force, make available to 
        the Commission or Task Force such amounts as the Commission or 
        Task Force may require to carry out the duties of the 
        Commission or Task Force under this section.
            (2) Availability.--Any sums made available to the 
        Commission or Task Force shall remain available, without fiscal 
        year limitation, until the termination of the Commission or 
        Task Force.
    (j) Definitions.--In this section:
            (1) The term ``appeals process'' means the process to 
        appeal the determination by the Secretary of a claim beginning 
        with the notice of disagreement filed pursuant to section 7105 
        of title 38, United States Code, and ending with the review of 
        a decision by the Supreme Court pursuant to section 7292(c) of 
        such title.
            (2) The term ``Board'' means the Board of Veterans' 
        Appeals.
            (3) The term ``strategic plan'' means the Strategic Plan to 
        Eliminate the Compensation Claims Backlog, published by the 
        Secretary of Veterans Affairs on January 25, 2013.
    (k) Effective Date.--This section shall take effect on the date 
that is one year after the date of the enactment of this Act.

SEC. 15. METHODS FOR VALIDATING CERTAIN WORLD WAR II MERCHANT MARINER 
              SERVICE CONSIDERED TO BE ACTIVE SERVICE BY THE SECRETARY 
              OF VETERANS AFFAIRS.

    (a) In General.--For the purposes of verifying that an individual 
performed service under honorable conditions that satisfies the 
requirements of a coastwise merchant seaman who is recognized pursuant 
to section 401 of the GI Bill Improvement Act of 1977 (Public Law 95-
202; 38 U.S.C. 106 note) as having performed active duty service for 
the purposes described in subsection (c)(1), the Secretary of Homeland 
Security shall accept the following:
            (1) In the case of an individual who served on a coastwise 
        merchant vessel seeking such recognition for whom no applicable 
        Coast Guard shipping or discharge form, ship logbook, merchant 
        mariner's document or Z-card, or other official employment 
        record is available, the Secretary shall provide such 
        recognition on the basis of applicable Social Security 
        Administration records submitted for or by the individual, 
        together with validated testimony given by the individual or 
        the primary next of kin of the individual that the individual 
        performed such service during the period beginning on December 
        7, 1941, and ending on December 31, 1946.
            (2) In the case of an individual who served on a coastwise 
        merchant vessel seeking such recognition for whom the 
        applicable Coast Guard shipping or discharge form, ship 
        logbook, merchant mariner's document or Z-card, or other 
        official employment record has been destroyed or otherwise 
        become unavailable by reason of any action committed by a 
        person responsible for the control and maintenance of such 
        form, logbook, or record, the Secretary shall accept other 
        official documentation demonstrating that the individual 
        performed such service during period beginning on December 7, 
        1941, and ending on December 31, 1946.
            (3) For the purpose of determining whether to recognize 
        service allegedly performed during the period beginning on 
        December 7, 1941, and ending on December 31, 1946, the 
        Secretary shall recognize masters of seagoing vessels or other 
        officers in command of similarly organized groups as agents of 
        the United States who were authorized to document any 
        individual for purposes of hiring the individual to perform 
        service in the merchant marine or discharging an individual 
        from such service.
    (b) Treatment of Other Documentation.--Other documentation accepted 
by the Secretary of Homeland Security pursuant to subsection (a)(2) 
shall satisfy all requirements for eligibility of service during the 
period beginning on December 7, 1941, and ending on December 31, 1946.
    (c) Benefits Allowed.--
            (1) Burial benefits eligibility.--Service of an individual 
        that is considered active duty pursuant to subsection (a) shall 
        be considered as active duty service with respect to providing 
        burial benefits under chapters 23 and 24 of title 38, United 
        States Code, to the individual.
            (2) Medals, ribbons, and decorations.--An individual whose 
        service is recognized as active duty pursuant to subsection (a) 
        may be awarded an appropriate medal, ribbon, or other military 
        decoration based on such service.
            (3) Status of veteran.--An individual whose service is 
        recognized as active duty pursuant to subsection (a) shall be 
        honored as a veteran but shall not be entitled by reason of 
        such recognized service to any benefit that is not described in 
        this subsection.
    (d) Determination of Coastwise Merchant Seaman.--The Secretary of 
Homeland Security shall verify that an individual performed service 
under honorable conditions that satisfies the requirements of a 
coastwise merchant seaman pursuant to this section without regard to 
the sex, age, or disability of the individual during the period in 
which the individual served as such a coastwise merchant seaman.
    (e) Definition of Primary Next of Kin.--In this section, the term 
``primary next of kin'' with respect to an individual seeking 
recognition for service under this section means the closest living 
relative of the individual who was alive during the period of such 
service.
    (f) Effective Date.--This section shall take effect 90 days after 
the date of the enactment of this Act.

SEC. 16. DESIGNATION OF AMERICAN WORLD WAR II CITIES.

    (a) In General.--The Secretary of Veterans Affairs shall designate 
at least one city in the United States each year as an ``American World 
War II City''.
    (b) Criteria for Designation.--After the designation made under 
subsection (c), the Secretary, in consultation with the Secretary of 
Defense, shall make each designation under subsection (a) based on the 
following criteria:
            (1) Contributions by a city to the war effort during World 
        War II, including those related to defense manufacturing, bond 
        drives, service in the Armed Forces, and the presence of 
        military facilities within the city.
            (2) Efforts by a city to preserve the history of the city's 
        contributions during World War II, including through the 
        establishment of preservation organizations or museums, 
        restoration of World War II facilities, and recognition of 
        World War II veterans.
    (c) First American World War II City.--The city of Wilmington, 
North Carolina, is designated as an ``American World War II City''.

SEC. 17. SENSE OF CONGRESS REGARDING AMERICAN VETERANS DISABLED FOR 
              LIFE.

    (a) Findings.--Congress makes the following findings:
            (1) There are at least 3,600,000 veterans currently living 
        with service-connected disabilities.
            (2) As a result of their service, many veterans are 
        permanently disabled throughout their lives and in many cases 
        must rely on the support of their families and friends when 
        these visible and invisible burdens become too much to bear 
        alone.
            (3) October 5, which is the anniversary of the dedication 
        of the American Veterans Disabled for Life Memorial, has been 
        recognized as an appropriate day on which to honor American 
        veterans disabled for life each year.
    (b) Sense of Congress.--Congress--
            (1) expresses its appreciation to the men and women left 
        permanently wounded, ill, or injured as a result of their 
        service in the Armed Forces;
            (2) supports the annual recognition of American veterans 
        disabled for life each year; and
            (3) encourages the American people to honor American 
        veterans disabled for life each year with appropriate programs 
        and activities.
                                                 Union Calendar No. 308

114th CONGRESS

   2d Session

                               H. R. 677

                          [Report No. 114-405]

_______________________________________________________________________

                                 A BILL

 To amend title 38, United States Code, to provide for annual cost-of-
  living adjustments to be made automatically by law each year in the 
 rates of disability compensation for veterans with service-connected 
disabilities and the rates of dependency and indemnity compensation for 
       survivors of certain service-connected disabled veterans.

_______________________________________________________________________

                            February 1, 2016

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