[Congressional Record Volume 140, Number 146 (Saturday, October 8, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              VETERANS' BENEFITS IMPROVEMENTS ACT OF 1994

  Mr. ROCKEFELLER. Mr. President, as the chairman of the Committee on 
Veterans' Affairs, I am enormously pleased that the Senate is 
considering H.R. 5244, a bill to amend title 38, United States Code, to 
provide the Secretary of Veterans Affairs with the authority to pay 
compensation to any Persian Gulf veteran suffering from a disability 
resulting from an undiagnosed, disabling health condition, to revise 
and improve the assessment of the health consequences of service during 
the Persian Gulf war, and for other purposes. I urge my colleagues to 
give their unanimous support to H.R. 5244, which has just passed the 
House in lieu of H.R. 4386, which is currently pending here in the 
Senate.
  The pending measure, H.R. 5244, represents a compromise between the 
Committees on Veterans' Affairs of the House and the Senate. This 
measure, which I will refer to as the compromise agreement, 
incorporates amendments to title 38 and freestanding provisions from: 
H.R. 4386, which passed the House on August 8, 1994; S. 2330, which the 
committee reported to the Senate on September 28, 1994; S. 2325 and S. 
2094, which the committee reported to the Senate on September 27, 1994; 
S. 1546, which the Senate passed on March 25, 1994; H.R. 3313 which 
contained provisions originally reported in S. 1626 and which passed 
the Senate on June 8, 1994; H. R. 4088 which the House also passed on 
August 8, 1994; and H.R. 4724, H.R. 4768, and H.R. 4776 which passed 
the House on August 1, 1994.


                                summary

  Mr. President, I want to thank my colleagues in the House, especially 
Representatives Montgomery and Stump, for their prompt consideration 
and passage of this vitally important measure.
  I will at this time summarize the provisions of the bill. Detailed 
descriptions of all of the provisions are set forth in the explanatory 
statement, originally written for H.R. 4386, which was developed in 
cooperation with the House Committee on Veterans' Affairs. My 
counterpart on the House Committee on Veterans' Affairs, Chairman G.V. 
``Sonny'' Montgomery, inserted the same explanatory statement in the 
Record when the House considered this measure.
  Mr. President, the compromise agreement has 12 titles: Persian Gulf 
War Veterans; Board of Veterans' Appeals Administration; Adjudication 
Improvements; Veterans' Claims Adjudication Commission; Miscellaneous 
Provisions; Education and Training Programs; Employment Programs; 
Cemeteries and Memorial Affairs; Housing Programs; Homeless Veterans 
Programs; Reductions in Department of Veterans Affairs Personnel; and 
Technical and Clerical Amendments.


                       persian gulf war veterans

  Mr. President, title 1 of the compromise agreement contains 
provisions that would:
  First, set forth specific congressional findings regarding Persian 
Gulf war veterans.
  Second, state the purposes of the compromise bill.
  Third, order the Secretary to (a) develop and implement a uniform and 
comprehensive evaluation protocol to provide extensive medical 
examinations to Persian Gulf war veterans who are suffering from 
illnesses the origins of which are unknown and that may be attributable 
to service in the gulf war; (b) develop case definitions or diagnoses 
for such illnesses; and (c) ensure that VA provides the evaluations at 
as many VA medical centers as possible. In order to make these 
evaluations as accurate and available as possible, the Secretary would 
be authorized to contract out these medical examinations, and any 
necessary treatment, to non-VA facilities, and to pay for travel and 
incidental expenses.
  Fourth, require the Secretary to develop and implement a 
comprehensive outreach program to inform Persian Gulf veterans and 
their families of medical care and other benefits that may be available 
to them from VA and DOD. The outreach program would include a 
semiannual newsletter to be prepared in consultation with veterans 
service organizations, and a toll-free number to provide any other 
information the Secretary considers appropriate.
  Fifth, provide the Secretary with authority to pay compensation to 
any Persian Gulf war veterans suffering from a disability resulting 
from an undiagnosed illness that became manifest during active duty or 
to a degree of 10 percent or more within a period to be determined by 
the Secretary, and, if the Secretary determines that compensation 
should be paid to these Persian Gulf war veterans, would require the 
Secretary to publish proposed regulations under which compensation 
would be paid.
  Sixth, direct VA to conduct a pilot study, whereby VA would develop 
an evaluation protocol and guidelines for medical examinations and 
tests for dependents of gulf war veterans. These procedures would be 
restricted to those dependents whose illnesses, birth defects, or other 
disorders may be associated with the veterans' service in the gulf war. 
It would authorize VA to pay for the medical examinations, tests, and 
consultations through contracts with non-VA facilities, and to use the 
data to determine whether gulf war symptoms are being transmitted to 
family members.
  Seventh, clarify that the Persian Gulf War Veterans health registry 
includes diagnostic tests in its definition of medical examinations.
  Eighth, authorize the Secretary of the Department of Veterans 
Affairs, in coordination with the Secretary of Defense, to carry out a 
survey of gulf war veterans to gather information about their health 
problems and the health problems of family members.
  Ninth, authorize VA to conduct an epidemiological study or studies of 
Persian Gulf war veterans if such a study is recommended by the 
National Academy of Sciences in the report required by section 706(b) 
of the Veterans Health Care Act of 1992 (Public Law 102-585).
  Tenth, amend section 1317 of title 38 to permit surviving spouses 
eligible to receive dependency and indemnity compensation [DIC] to 
elect to receive death pension under chapter 15 in lieu of DIC, and 
provide that, with respect to any cost-of-living adjustment in the 
rates of compensation and DIC provided for fiscal year 1995, all 
increased rates (other than those equal to a whole dollar amount) must 
be rounded down to the next lower dollar.


               board of veterans' appeals administration

  Mr. President, title 2 of the compromise agreement contains provision 
that would:
  First, eliminate term limits for members of the Board of Veterans' 
Appeals other than the chairman and provide that members of the Board 
would receive the same basic pay as received by administrative law 
judges, unless that would result in a reduction in pay.
  Second, require the chairman to establish a panel, including the 
chairman and two other members of the Board, to conduct reviews of the 
job performance of Board members, establish job performance standards, 
and conduct reviews of the job performance of Board members within 1 
year after the establishment of those job performance standards, and 
then at least every 3 years thereafter.
  Third, specify that if the position of chairman were to become vacant 
upon the expiration of the chairman's term, the current chairman would 
be authorized, with the approval of the Secretary, to continue to serve 
as chairman until the chairman is appointed to another term or a new 
chairman is appointed (but not beyond the end of the Congress during 
which the term of office expired).


                       adjudication improvements

  Mr. President, title 3 of the compromise agreement contains 
provisions that would:
  First, for purposes of claims for VA benefits, allow the Secretary to 
accept a written statement from the claimant as evidence of marriage, 
dissolution of a marriage, birth of a child, or death of a family 
member.
  Second, allow the Secretary to accept the medical examination report 
of a private physician in support of any claim for VA disability 
benefits, without a requirement for confirmation by an examination by a 
VA physician, if the report is sufficiently complete to be adequate for 
purposes of adjudicating the claim.
  Third, require the Secretary to take such actions as may be necessary 
to provide that claims remanded by the Board of Veterans' Appeals to 
regional offices or by the Court of Veterans Appeals to VA be treated 
expeditiously.
  Fourth, permit the Board to screen cases on appeal at any point in 
the decision process (a) to determine whether the record is adequate 
for decisional purposes, or (b) for the development or attempted 
development of a record that is inadequate for decisional purposes.
  Fifth, require the Secretary to submit to the House and Senate 
Committees on Veterans' Affairs a report addressing the feasibility and 
impact of a reorganization of VA claims adjudication divisions to a 
number of such divisions that would result in improved efficiency in 
the processing of claims.


                veterans claims adjudication commission

  Mr. President, title 4 of the compromise agreement contains 
provisions that would:
  First, establish an independent commission to study VA's system for 
the disposition of claims for benefits, both at the regional office 
level and at the Board of Veterans' Appeals.
  Second, describe the composition of the commission to be made up of 
nine members appointed by the Secretary of Veterans Affairs, to include 
the following: One member who is a former VA official; two members from 
the private sector who have expertise in the adjudication of claims 
relating to insurance or similar benefits; two members who are employed 
in the Federal Government, outside VA, who have expertise in the 
adjudication of claims for Federal benefits other than VA benefits; two 
members who are representatives of veterans service organizations; one 
member recommended by the American Bar Association or a similar private 
organization who has expertise in administrative law issues; and one 
member who currently is a VA official.
  Third, direct the commission to evaluate the entire adjudication 
system in order to determine the efficiency of its processes and 
procedures, including the impact of judicial review on the system, 
means for reducing the backlog of pending cases in the system, and 
means for improving timeliness and quality of the claims process by 
examining the VA's system for the disposition of claims and benefits 
delivery and any related issues the commission determines are relevant 
to such a study.
  Fourth, order the Secretary to submit to the commission and the 
Committees on Veterans' Affairs of the Senate and House of 
Representatives any information which the chairman of the study has 
determined necessary to carry out the study within 30 days of the 
chairman's request for such information.
  Fifth, require the commission to present a preliminary report within 
1 year of enactment of the act and a final report within 18 months of 
enactment.
  Sixth, authorize that $400,000 be made available from amounts 
appropriated to VA for fiscal year 1995 for the payment of compensation 
and pension for the activities of the commission.


               miscellaneous benefits-related provisions

  Mr. President, title 5 of the compromise agreement contains 
provisions that would:
  First, clarify that, for the purposes of a presumption of service 
connection based on exposure to ionizing radiation, participation in 
atmospheric testing of nuclear devices includes non-U.S. tests.
  Second, provide that provisions of law requiring VA to establish a 
procedure for a particular type of claim may not be construed to 
prevent the establishment of service connection on a direct basis.
  Third, extend the Secretary's authority to maintain the regional 
office in the Republic of the Philippines until December 31, 1999.
  Fourth, provide that an application filed for non-service-connected 
pension or parents' DIC made within 1 year of a renouncement of such 
benefits will not be treated as an original claim, and benefits will be 
paid as though the renouncement had not occurred.
  Fifth, clarify that an attorney may received payment for 
representation in proceedings before VA or the Court of Veterans 
Appeals directly from VA out of a retroactive benefit award only if the 
total amount of the fee is contingent upon the claim being resolved in 
favor of the appellant.
  Sixth, codify the presumptions of service connection based on 
exposure to herbicides for Hodgkin's disease, porphyria cutanea tarda, 
respiratory cancers (lung, trachea, bronchus, and larynx), and multiple 
myeloma established administratively by the Secretary.
  Seventh, exclude payments received from Alaska Native corporations 
under the Alaska Native Claims Settlement Act from the calculation of 
income for purposes of determining eligibility for VA pension, but only 
to the extent that these payments are excluded for purposes of other 
means-tested Federal benefits programs as specified in ANCSA.
  Eighth, eliminate the requirement that certain VA benefits paid to 
eligible veterans in the Republic of the Philippines be paid in pesos, 
thereby allowing VA to issue regulations in order to comply with the 
requests of the Departments of State and Treasury that such 
restrictions be eliminated.
  Ninth, require an evalution of the feasibility of a study of the 
Health consequences for family members of atomic veterans of exposure 
of atomic veterans to ionizing radiation.
  Tenth, establish a Center for Minority Veterans and a Center for 
Women Veterans.
  Eleventh, require (a) the Secretary to establish an Advisory 
Committee for Minority Veterans for a period of 3 years; (b) the 
committee membership to represent certain groups relating to minority 
veterans; and (c) the committees to submit a report to the Secretary, 
not later than July 1 of each even-numbered year, which assesses the 
needs of and programs for minority veterans, and require the Secretary 
to share this report with Congress.
  Twelfth, require that a notice of appeal be deemed received by the 
court on the date it is postmarked, if it is mailed. Only legible U.S. 
Postal Service postmarks would be sufficient.


                    education and training programs

  Mr. President, title 6 of the compromise bill contains provisions 
that would:
  First, make permanent the program of vocational flight training 
available under chapters 30 and 32 of title 38, and chapter 106 of 
title 10.
  Second, authorize the use of Indian reservations for the purposes of 
section 3115 of title 38, to allow eligible veterans to participate in 
programs of on-the-job training on Indian reservations.
  Third, add to the definition of the term ``educational institution,'' 
for the purposes of chapters 34 and 36 and as described in section 
3452(c), entities which provides training required for completion of 
any State-approved alternative teacher certification program, as 
determined by the Secretary.
  Fourth, remove the requirement that courses offered by approved 
foreign universities and colleges be located at the site of the 
approved institution in order for such courses to be eligible for 
approval by the Secretary.
  Fifth, require that correspondence programs and combination 
correspondence-residence courses may be approved by State Approving 
Agencies only if the educational institution is accredited by an entity 
recognized by the Secretary of Education, and that no less than 50 
percent of such courses require a minimum of 6 months to be completed.
  Sixth, increase the maximum amount available to State Approving 
Agencies to $13,000,000 per fiscal year, and eliminate certain 
reporting and supervision requirements.
  Seventh, add chapter 106 of title 10 to the sources of educational 
and training benefits for which the Secretary will define full- and 
part-time training.
  Eighth, extend the authority for the Veterans' Advisory Committee on 
Education though December 31, 2003, and make technical changes to the 
committee's mandate.
  Ninth, increase the level of funding available for contract 
educational and vocational counseling services from $5,000,000 to 
$6,000,000, effective October 1, 1994.


                          employment programs

  Mr. President, title 7 of the compromise bill contains provisions 
that would:
  First, create the position of Deputy Assistant Secretary of Labor for 
Veterans' Employment and Training who shall perform such duties as the 
Assistant Secretary of Labor for Veterans' Employment and Training 
prescribes and who shall be a veteran.
  Second, provide that compensation for disabled veterans' outreach 
program [DVOP] specialists shall be set at rates comparable to the 
rates paid to professionals performing essentially similar duties in 
the State Government of the State in which that specialist is employed.
  Third, expand the scope of the biennial study required under section 
4110A to include (a) veterans of the Vietnam era who served outside the 
Vietnam theater of operations; (b) veterans who served after the 
Vietnam era, (c) veterans discharged or released from active duty 
within the 4 years prior to the study, and (d) a category for women 
veterans for each of the classifications of veterans.
  Fourth, require Federal contractors to immediately list with the 
local employment service officer all open positions except executive 
and top management positions, those positions that will be filled from 
within the contractor's organization, and positions lasting 3 days or 
less.
  Fifth, add benefits received under chapter 30 of title 38 and chapter 
106 of title 10 to the amounts disregarded pursuant to section 4213.


                    cemeteries and memorial affairs

  Mr. President, title 8 of the compromise agreement would revise and 
improve matters relating to the national cemeteries. Specifically, the 
compromise agreement would:
  First, restore the statutory eligibility for burial in national 
cemeteries of spouses who predecease veterans eligible for such burial.
  Second, restore eligibility for burial in national cemeteries to 
surviving spouses whose subsequent marriage ended by death or divorce.
  Third, extend the authorization of appropriations for the State 
Cemetery Grants Program from September 30, 1994, to September 30, 1999.
  Fourth, authorize the use of flat grave markers at the Willamette 
National Cemetery in Oregon.


                            housing programs

  Mr. President, title 9 of the compromise bill contains provisions 
that would:
  First, add to the definition of ``veteran'' persons discharged or 
released from the Selected Reserves before completing 6 years of 
service because of a service-connected disability, and extend 
eligibility to surviving spouses of reservists who died on active duty 
or due to a service-connected disability.
  Second, allow the Secretary to waive the precondition to restoration 
of loan guaranty entitlement contained in subsection 3702(b)(1)(A) once 
for each veteran.
  Third, eliminate VA's prohibition against guaranteeing a loan to 
purchase or construct a home not served by public water and sewerage 
systems where such service is certified as economically feasible.
  Fourth, allow for the costs of energy efficiency improvements to be 
added to the loan balance in connection with a loan refinanced for the 
purpose of reducing the interest rate.
  Fifth, authorize the refinancing of adjustable rate mortgage loans to 
fixed rate mortgage loans at a higher interest rate.
  Sixth, eliminate VA inspection requirements under section 
3712(h)(2)(A), and provide that manufactured housing that is certified 
to conform to standards under section 616 of the National Manufactured 
Housing Construction and Safety Standards Act of 1974 shall be deemed 
in compliance with requirements of subsection 3712(h)(1).
  Seventh, permit VA to acquire property from the lender at the price 
provided for under current law, despite the fact that the lender's bid 
at the foreclosure sale might have exceeded that price.
  Eighth, add an exception from the 2-year minimum service requirement 
with respect to eligibility under chapter 37 of title 38 for service 
members discharged because of a reduction in force.


                       homeless veterans programs

  Mr. President, title 10 of the compromise agreement would revise and 
improve programs to assist homeless veterans. Specifically, the 
compromise agreement would:
  First, require VA to submit an annual report on its activities to 
assist homeless veterans, including information on the numbers of 
homeless veterans served and the costs to the Department of its 
activities, and to report biannually on the effectiveness of these 
activities.
  Second, require that VA complete an assessment of the needs of 
homeless veterans, as required by Public Law 102-405, report its 
finding to the Senate and House Committees on Veterans' Affairs by 
December 31, 1994, and update this report annually for 3 years.
  Third, raise the limit on the number of comprehensive homeless 
centers that VA may establish from four to eight.
  Fourth, remove the requirement in the Homeless Veterans Comprehensive 
Service Programs Act of 1992 that funds for various initiatives in that 
law be specifically provided for in an appropriations law.
  Fifth, express that it is the sense of the Congress that (a) of the 
funds appropriated for any fiscal year for programs to assist homeless 
individuals, a share more closely approximating the proportion of the 
population of homeless individuals who are veterans should be 
appropriated to VA for VA homeless programs; (b) of the Federal grants 
made available to assist community organizations that assist homeless 
individuals, a share of such grants more closely approximating the 
proportion of the population of homeless individuals who are veterans 
should be provided to community organizations that provide assistance 
primarily to homeless veterans; and (c) the Secretary should encourage 
Federal agencies that assist homeless individuals, including homeless 
veterans, to be aware of and make appropriate referrals to VA for 
benefits, such as health care, substance abuse treatment, counseling, 
and income assistance.


         reduction in department of veterans affairs personnel

  Mr. President, title 11 of the compromise agreement would limit the 
number of personnel reductions in VA and set other requirements 
regarding VA staff. Specifically, the compromise agreement would:
  First, limit the cuts in the VA work force from fiscal years 1993-99 
to a total of 10,051 full-time equivalent employees [FTEE].
  Second, require that, in determining the total number of FTEE in VA 
for purposes of achieving Federal work force reductions, only those 
employees whose salaries and benefits are paid with appropriated funds 
may be counted as VA FTEE.
  Third, require the Secretary to submit an annual report, through the 
year 2000, to the House and Senate Committees on Veterans' Affairs that 
describes the numbers and positions of all VA employees cut and the 
rationale behind such cuts.
  Fourth, provide enhanced authority for VA to contract for services 
during fiscal years 1995-99 in order to assist VA in achieving its work 
force reduction, and provide certain assistance and hiring preference 
to those employees who are displaced by contract workers.
  Fifth, require the Secretary to contract with an appropriate non-
Federal entity to study and report to Congress on the feasibility and 
advisability of alternative organizational structures, such as the 
establishment of a quasi-Government corporation, to provide health care 
to veterans.


 compensation for persian gulf war veterans for disabilities resulting 
                       from undiagnosed illnesses

  Mr. President, the provisions of the compromise agreement regarding 
Persian Gulf war veterans would clearly provide the Secretary with 
authority to pay compensation to any Persian Gulf veteran suffering 
from a disability resulting from an undiagnosed illness that became 
manifest during active duty, or to a degree of 10 percent or more 
within a period following service in the Persian Gulf war to be 
determined by the Secretary. This strongly bipartisan and bicameral 
provision is derived from provisions that Representatives Montgomery, 
Evans, Slattery, and Kennedy offered in the House which were 
incorporated into H.R. 4386 which passed the House on August 8, 1994, 
and from provisions that Senator Daschle and I offered at the September 
23, 1994, Senate Committee on Veterans' Affairs meeting.
  My distinguished colleague on the committee, Senator Daschle, worked 
extremely long and hard with me on this issue throughout the entire 
103d Congress. During the past several weeks, he and his staff member, 
Rachel Graham, have devoted much time and energy to crafting the final 
Senate provisions relating to Persian Gulf war veterans.
  Mr. President, I regret that this situation requires a legislative 
remedy. However, I strongly believe this measure is the appropriate 
action to take because the Department of Veterans' Affairs will not 
take action on its own to provide compensation to Persian Gulf war 
veterans clearly disabled following their service in the gulf. Under 
this measure, the Secretary would be required to decide whether to 
compensate these veterans, and, if so, to prescribe regulations to 
implement the decision and thereby provide Persian Gulf war veterans 
the compensation they deserve. The Secretary would determine the 
appropriate period of time following service in the southwest Asia 
theater of operations for presumption of service connection. In 
addition, the regulations would have to include a description of the 
particular military service involved, the illnesses for which 
compensation may be paid, and the relevant medical characteristics 
associated with the illnesses. Of the various legislative options 
available, I believe this is a good approach because it avoids 
micromanagement of the Department by Congress, and validates VA's 
authority to make decisions concerning service connection for specific 
conditions.
  Mr. President, I strongly believe that Congress should not be in the 
business of legislating service connection for every new disease that 
results from service in particular wars or military conflicts. That is 
simply not where our expertise lies. Although this measure is limited 
to Persian Gulf war veterans, it still leaves the discretion for such 
decisions to VA, where it rightfully belongs. Only when VA fails to act 
properly in carrying out its obligations with respect to compensating 
veterans for service-related disabilities should Congress step in and 
take some corrective action.
  Mr. President, this measure will not resolve all of the problems 
faced by Persian Gulf veterans. There are still many unanswered 
questions concerning the health effects of service in the Persian Gulf 
and whether conditions that take a longer time to show up can be 
connected to Persian Gulf service. As has been noted previously, we 
will have to wait for the scientific and medical evidence to provide us 
with answers. However, I am happy to note that, in addition to the many 
steps already being taken in this effort by VA, the Secretary of 
Defense, and the Secretary of Health and Human Services, this measure 
also would require VA to develop a uniform and comprehensive medical 
evaluation protocol, and would provide for the evaluation of the health 
status of spouses and children of Persian Gulf War veterans.
  Mr. President, my hope is that we can enact this measure, so that VA 
can begin to compensate all veterans who are suffering from 
undiagnosed, service-connected conditions that have left them severely 
disabled. These deserving veterans should not be penalized simply 
because their ``diseases'' have no name. They are sick because of their 
military service, and therefore should receive compensation from the 
Government they served so bravely.


                education, job training, and home loans

  This bill also contains many technical corrections and improvements 
to programs which provide education benefits, job training, and home 
loan benefits to millions of our veterans.
  Among these improvements--thanks to my colleague and good friend Tom 
Daschle--vocational flight training will be established as a permanent 
program under chapters 30 and 32 of title 38, and chapter 106 of title 
10, United States Code. Nearly 1,800 veterans have benefited from the 
financial assistance these programs have provided under the Montgomery 
GI Bill and the Veterans Educational Assistance Program, a majority of 
whom have gained employment in the aviation industry. However, 
authority to allow eligible veterans to use their education benefits 
for flight training expired on September 30.
  It is important to provide as many options as possible for eligible 
veterans who wish to pursue approved programs of education or 
vocational training. Eligible veterans who wish to pursue careers in 
aviation should continue to be allowed to use their education benefits 
for approved programs of flight training, a result achieved by this 
bill.
  This bill also makes improvements and technical corrections to the 
Service Member Occupational Conversion and Training Act [SMOCTA]. 
SMOCTA has been instrumental in helping over 7,000 former service 
members secure job placement in the private sector. However, some 
adjustments will make SMOCTA even more valuable for participants.
  Under current law, the 18-month limitation on payment of the subsidy 
is phrased in terms of an 18-month limit on the period of training. 
This limitation prevents veterans from entering into some training 
programs for stable, well-paying jobs. This bill allows employer and 
veteran to agree to a training program that lasts longer than 8 months 
if they are willing to do so without the benefit of a subsidy for the 
extended training period. While this will greatly improve the utility 
of the program for both veteran and employer, removing the 18-month cap 
on training will not increase the amount of the subsidy payable under a 
training program.

  Mr. President, these are only a few examples of the adjustments made 
to VA education, home loan, and job training programs in this bill. 
While most are relatively minor, when taken together they will help VA 
maintain and improve services to many thousands of our veterans. I wish 
to recognize the hard work and dedication of George Sangmeister, 
chairman of the House Subcommittee on Housing and Memorial Affairs, who 
has made tremendous contributions to this bill and countless others 
which have benefited our veterans during his 6 years in Congress. He 
has been an active chairman, and I thank him for his good work.


         reductions in department of veterans affairs personnel

  Mr. President, title 11 of the compromise agreement would limit the 
number of personnel reductions in VA and set other requirements 
regarding VA staff. This agreement follows months of discussions among 
the two Committees on Veterans' Affairs, VA, and the Office of 
Management and Budget. I believe it strikes a reasonable balance 
between the two difficult and competing objectives of reducing the 
Federal work force and delivering health care to our Nation's veterans. 
I thank my good friend and chairman of the House Committee on Veterans' 
Affairs, Mr. Montgomery, for his cooperation, hard work, and ceaseless 
advocacy for veterans and veterans' health care.


                               background

  Mr. President, in March 1993, Vice President Albert Gore, Jr., 
launched a 6-month national performance review of the Federal 
Government with the aim of finding ways to make government work better 
and cost less. The report of the performance review described numerous 
changes to the Government that, according to the report could, if 
implemented, achieve these aims. The report suggested that these 
changes would enable the Government, through greater program and 
management efficiency, to reduce the Federal work force by 252,000 
positions by the year 2000.
  Mr. President, let me reiterate this last point. The National 
Performance Review team stated, ``* * * the reinventions we 
propose will allow us to reduce the size of the civilian * * * work 
force by 12 percent [252,000 FTEE] over the next 5 years.'' The report 
does not state that cutting the work force will necessarily result in 
greater efficiency or improved service for our citizens. The NPR report 
correctly puts the horse before the cart--improvements would enable a 
work force reduction, not result from a work force reduction.
  On March 30, 1994, Congress considered legislation which, in part, 
was designed to codify the Federal cutback into law. The Federal 
Workforce Restructuring Act of 1994 proposed a reduction in the Federal 
Government of 272,900 positions between fiscal years 1993 and 1999. 
This proposal received the overwhelming support of both Houses of 
Congress. Public Law 103-226 was enacted March 30, 1994.
  Mr. President, this law gives the Office of Management and Budget the 
authority to determine how to distribute personnel cuts among the 
Federal agencies. Unfortunately, OMB planned an across-the-board cut of 
12 percent for all the agencies, instead of looking carefully at each 
agency's work force and ability to sustain cuts without compromising 
the agency's mission. For VA, OMB proposed to cut 27,000 FTEE during 
the next 5 years. This proposed cut concerned me enormously, 
particularly in the context of health care reform, as it did my fellow 
committee members, the House Committee on Veterans' Affairs, and the 
many veterans who contacted me about this issue.
  Mr. President, I note that, contrasted with OMB's proposal, a later, 
specific analysis of VA by the National Performance Review showed that, 
if VA fully implemented all management streamlining proposals, VA would 
be able to cut a total of only 289 FTEE.
  Mr. President, in response to OMB's projected 27,000 FTEE cut, the 
chairman of the House Committee on Veterans' Affairs [Mr. Montgomery] 
introduced H.R. 4013 on March 11, 1994, which would have exempted the 
Veterans Health Administration from work force reductions over the next 
5 years, provided that appropriate funding was provided for these 
positions. The bill would have exempted over 211,000 employees. H.R. 
4013 passed the House on May 3, 1994.
  Mr. President, I share the concern of my friend, Chairman Montgomery, 
that VA medical centers cannot afford drastic cuts in staff. We must 
strengthen the veterans health system by protecting hospitals from 
arbitrary across-the-board cuts in medical staff. We must search for a 
long-term solution that maintains the Federal Government's commitment 
to veterans and permits VA flexibility to staff, contract out, 
purchase, sell, and do whatever else a business delivering health care 
services is permitted to do, but without the constraints of Federal 
employment ceilings and other restrictions. Mr. President, we should 
not put an artificial cap on health care staffing and, at the same 
time, tell VA to be a competitive health care provider. The compromise 
agreement attempts to address this issue.


                          summary of agreement

  Mr. President, the compromise agreement would set a 5-year limit on 
the number of VA personnel cuts, not to exceed 10,051 FTEE. I and 
others participating in the negotiation believe that VA could sustain 
this level of cuts without affecting direct medical care for veterans.
  The agreement would also require that, in determining the total 
number of FTEE in VA for purposes of achieving Federal work force 
reductions, only those employees whose salaries and benefits are paid 
with appropriated funds may be counted as VA FTEE. The Department 
currently counts approximately 5,400 positions that are paid with funds 
other than federally appropriated funds. In fiscal year 1993, the 
Veterans' Canteen Service employed 3,065 staff who were paid from the 
receipts of canteen sales, not from Federal appropriations. Employees 
of the nonprofit research corporations and Medical Care Cost Recovery 
Program are similarly paid with nonappropriated money. I strongly 
believe that, for purposes of determining an accurate estimate of the 
number of Federal employees in VA, those employees whose salaries and 
benefits are not paid with taxpayers' money should not be counted.
  Mr. President, the compromise agreement also would waive certain 
conditions with which VA must comply in order to contract out for 
services that the Department could otherwise perform, provided that 
certain protections and assistance are provided to those former VA 
employees who are replaced by workers hired by contract. The Secretary 
would be required to ensure that, in any contract for services that had 
been provided by VA employees, the contractor would be required to give 
priority to former VA employees who were displaced by the award of the 
contract. The Secretary would also be required to provide to such 
former VA employees all possible assistance in obtaining other Federal 
employment or entrance into job training programs.

  Finally, Mr. President, the compromise agreement would require the 
Secretary to contract with an appropriate non-Federal entity to study 
and report to Congress on the feasibility and advisability of 
alternative organizational structures, such as the establishment of a 
quasi-Government corporation, to provide health care to veterans.
  Mr. President, as a Federal agency which is funded with federally 
appropriated money, VA has not had the proper incentives to perform as 
a business. VA hospitals receive appropriations and remain open 
generally without regard to how many veterans are being served or the 
quality of service they provide. Although VA does collect a limited 
amount of third-party reimbursements and copayments, it does not need 
or rely upon such income. It does not need to attract a certain number 
of veterans to remain in service. In essence, VA does not have a 
``bottom line'' to drive it to deliver high quality services for a 
competitive price.
  The compromise agreement would require a study that assesses the 
management structures and organization of the VA health care delivery 
system. While there are many aspects of VA that should and must remain 
federally funded and centrally administered--such as programs to assist 
veterans who suffer from homelessness, posttraumatic stress disorder, 
or spinal cord injuries, or who need blind rehabilitation--certain 
aspects of VA's health delivery system could operate more like 
nongovernment businesses. I believe that VA should strive to serve 
veterans' health care needs in the best and most effective manner 
possible. Regardless of whether substantial changes occur in the 
Nation's health care system, this study should benefit the Department's 
health delivery system.


                               conclusion

  Mr. President, in closing, I again thank my good friends 
Representatives Sonny Montgomery and Bob Stump, the chairman and 
ranking minority member of the House Committee on Veterans' Affairs, 
for their cooperation and assistance as we have developed this 
compromise and four sheparding H.R. 5244 through the House today which 
passed in lieu of H.R. 4386. I also thank our committee's ranking 
minority member, my good friend Frank Murkowski, and all the members of 
the Senate committee for their support on this measure.
  Mr. President, I also want to thank the staff who have worked 
extremely long and hard on this compromise--Mack Fleming, Jill Cochran, 
Ralph Ibson, Greg Maton, Winsome Packer, Gloria Royce, Pat Ryan, John 
Brizzi, Richard Jones, and Kingston Smith on the House committee, and 
Bill Brew, Meg Morrow, Tom Hart, Valerie Kessner, Dan Rauh, Diana 
Zuckerman, Kim Lipky, Patricia Olson, Lara Muldoon, Mary Schoelen, Jim 
Gottlieb, Bill Tuerkk, Chris Yoder, Mickey Thursam, and John Moseman 
with the Senate committee. I also thank Robert Cover and Charlie 
Armstrong of the House and Senate Offices of Legislative Counsel for 
their excellent assistance and support in drafting the compromise 
agreement.
  Mr. President, I ask unanimous consent that the explanatory statement 
that I mentioned earlier appear in the Record at the conclusion of my 
remarks.
  There being no objection, the statement was ordered to be printed in 
the Record, as follows:

   Joint Explanatory Statement for H.R. 4386, the Veterans' Benefits 
                        Improvements Act of 1994

       H.R. 4386 reflects a compromise agreement that the Senate 
     and House of Representatives Committees on Veterans' Affairs 
     have reached on certain bills considered in the Senate and 
     the House of Representatives during the 103d Congress. These 
     are the following: H.R. 4386, which the House passed on 
     August 8, 1994; H.R. 4088, which the House Committee on 
     Veterans' Affairs reported on August 4, 1994, and the House 
     passed on August 8, 1994 as S. 1927; H.R. 4768, which the 
     House passed on August 1, 1994; H.R. 4776, which the House 
     passed on August 1, 1994; H.R. 4724, which the House passed 
     on August 1, 1994; H.R. 949, which the House passed on 
     September 21, 1993; H.R. 3013, which the House passed on June 
     13, 1994; H.R. 3456, which the House passed on November 16, 
     1993; S. 1908, which the Senate passed on August 19, 1994; S. 
     1546, which the Senate passed on March 25, 1994; S. 2330, 
     which the Senate Committee on Veterans' Affairs reported on 
     September 28, 1994; S. 2325, which the Senate Committee on 
     Veterans' Affairs reported on September 27, 1994; S. 2094, 
     which the Senate Committee on Veterans' Affairs reported on 
     September 27, 1994; and S. 1626, which was reported by the 
     Senate Committee on Veterans' Affairs on May 23, 1994, and 
     passed by the Senate as part of H.R. 3313 on June 8, 1994.
       The Committees on Veterans' Affairs of the Senate and House 
     of Representatives have prepared the following explanation of 
     H.R. 4386 as amended (hereinafter referred to as the 
     ``compromise agreement''). Differences between the provisions 
     contained in the compromise agreement and the related 
     provisions in the above-mentioned bills are noted in this 
     document, except for clerical corrections, conforming changes 
     made necessary by the compromise agreement, and minor 
     drafting, technical, and clarifying changes.


                   title i--persian gulf war veterans

                                Findings

       Current law: No provision.
       House bill: Section 2 of H.R. 4386 sets forth specific 
     congressional findings regarding Persian Gulf War veterans, 
     including the following: (1) During the Persian Gulf War, 
     members of the Armed Forces potentially were exposed to toxic 
     substances and psychological stress; (2) Persian Gulf War 
     veterans suffer from illnesses that cannot now be diagnosed 
     or defined, and, as a result, VA does not consider these 
     illnesses to be service connected for VA benefit purposes; 
     (3) the National Institutes of Health Technology Assessment 
     Workshop on the Persian Gulf Experience and Health, held on 
     April 27-29, 1994, was unable to identify a single disease 
     entity or syndrome responsible for these illnesses; (4) the 
     workshop concluded that the data on the range and 
     intensity of the exposure to toxic substances are limited 
     and were collected after considerable delay; (5) under 
     Public Law 102-585, VA established the Persian Gulf War 
     Veterans Health Registry, authorized health examinations, 
     and authorized NAS to conduct a review and assessment of 
     the information about the health consequences of service 
     during the Persian Gulf War, and to make recommendations 
     for research; (6) Public Law 103-210 authorized priority 
     health care for Persian Gulf War veterans; (7) Public Law 
     103-160, the National Defense Authorization Act for Fiscal 
     Year 1994, provided funding for a specialized 
     environmental research medical facility; and, (8) further 
     research and studies must be undertaken and veterans must 
     be given the benefit of the doubt and provided 
     compensation.
       Senate bill: No comparable provision.
       Compromise agreement: Section 102 follows the House, adding 
     that the National Defense Authorization Act for Fiscal Year 
     1995 authorizes the Secretary of Defense to provide research 
     grants for three types of studies of the Gulf War syndrome, 
     including the following: (1) an epidemiological study or 
     studies; (2) studies related to the health consequences of 
     the use of pyridostigmine bromide; and (3) other studies on 
     the causes, treatment, and possible transmission of Gulf War 
     illnesses.

                                Purposes

       Current law: No provision.
       House bill: Section 3 of H.R. 4386 states the purposes of 
     the House bill as follows: (1) To provide compensation to 
     Persian Gulf War veterans suffering disabilities resulting 
     from undiagnosed illnesses; (2) to require the development of 
     case assessment strategies and definitions and diagnoses at 
     earliest possible date: (3) to promote greater outreach to 
     Persian Gulf War veterans and their families; and (4) to fund 
     research activities and surveys of Persian Gulf War veterans.
       Senate bill: No comparable provision.
       Compromise agreement: Section 103 follows the House bill.

               Development of medical evaluation protocol

       Current law: Title VII of the Veterans Health Care Act of 
     1992 (Public Law 102-585) requires the Secretary of Veterans 
     Affairs to establish and maintain a Persian Gulf War Veterans 
     Health Registry. Those individuals who served as a member of 
     the Armed Forces in the Persian Gulf War become eligible for 
     enrollment in the registry after they give historical 
     information about their health and military exposures, 
     receive a physical examination, and receive routine 
     diagnostic testing.
       On June 17, 1994, VA announced the implementation of a 
     comprehensive case assessment protocol to be used by selected 
     VA medical centers. The first phase of the protocol would 
     continue to be the evaluation provided through enrollment 
     into the VA Persian Gulf War Veterans Health Registry. If 
     necessary, additional evaluations would be offered.
       House bill: Section 104 of H.R. 4386 would require the 
     Secretary of Veterans Affairs, in consultation with the 
     Secretaries of Defense and Health and Human Services, to 
     develop at the earliest possible date uniform case assessment 
     protocols and case definitions or diagnoses for illnesses 
     attributed to service in the Persian Gulf War. The Secretary 
     of Veterans Affairs would be required to provide status 
     reports on these activities, with the first such report due 
     to the Committees on Veterans' Affairs of the House and 
     Senate not later than 6 months after the date of enactment of 
     the act.
       Senate bill: Section 3 of S. 2330 is similar to the House 
     bill and would require the Secretary to develop and implement 
     a uniform and comprehensive evaluation protocol to provide 
     extensive medical examinations to Persian Gulf War veterans 
     who are suffering from illnesses the origins of which are 
     unknown and that may be attributable to service in the Gulf 
     War. It would not require VA to provide a case definition of 
     the illness. Section 3 of S. 2330 also would require that the 
     Secretary of Veterans Affairs, in consultation with the 
     Secretary of Defense, ensure that information on the 
     protocols of the two agencies is collected and maintained in 
     a manner that enables the information to be analyzed 
     together.
       This section also would require that the VA provide the 
     comprehensive clinical evaluations at as many VA medical 
     centers as possible. This evaluation protocol must include 
     evaluation for reproductive complaints, including but not 
     limited to birth defects, miscarriages, and abnormal semen. 
     If a VA medical center were to be unable to provide the 
     comprehensive clinical evaluation, VA would have the 
     authority to provide funding for the veteran to travel to a 
     VA medical center or non-VA facility that can provide the 
     necessary assessment, diagnosis, and treatment. VA would also 
     have the authority to pay for care at non-VA medical 
     facilities. For individuals whose symptoms or illnesses 
     remain undiagnosed or unresponsive to treatment after 
     comprehensive clinical evaluations at VA medical facilities, 
     the Secretary of Veterans Affairs would be authorized to 
     provide funds for the veteran to be evaluated by a recognized 
     medical institution outside of the VA medical system. All 
     information gathered by non-VA medical facilities as part of 
     these protocols would be required to be maintained by VA.
       VA would be authorized to enter into an agreement with the 
     National Academy of Sciences under which appropriate members 
     of the Academy would review the adequacy of the comprehensive 
     clinical evaluation protocol and its implementation by VA.
       Compromise agreement: Section 104 includes the requirement 
     that VA develop a medical evaluation protocol, which was 
     included in both the House and Senate bills. It includes the 
     Senate provision requiring VA make the medical protocol 
     available in as many VA medical centers as possible and to 
     include examinations and tests for reproductive complaints. 
     The compromise agreement specifies that the Secretary has 
     authority to contract out these medical examinations, tests, 
     and consultations, and any necessary treatment, to non-VA 
     facilities, and to pay for travel and incidental expenses, 
     under section 1703 and section 111 of title 38. The Senate 
     provision regarding reviews by the National Academy of 
     Sciences is also included. The compromise agreement includes 
     the House provision requiring the VA develop a case 
     definition of ``Gulf War Syndrome.''
       Section 104 reflects the Committees' concerns about the 
     letters and Congressional testimony they have received from 
     Gulf War veterans who report that they have had difficulty in 
     obtaining appropriate medical examinations or diagnoses at 
     numerous VA medical centers.

                   Outreach to Persian Gulf Veterans

       Current law: Section 702(f) of Public Law 102-585 required 
     VA to notify periodically individuals listed in the Persian 
     Gulf War Veterans Health Registry of significant developments 
     in research on the health effects of military service in the 
     Persian Gulf during the Persian Gulf War. Neither this 
     provision, nor any other provision in law otherwise 
     specifically requires VA to establish an outreach program for 
     Persian Gulf War veterans and their families. There are a 
     number of benefits and services available to these 
     individuals, but there currently is no single source of VA 
     information to ensure that they know about the benefits and 
     services for which they may be eligible, as well as the 
     scientific studies and research currently being conducted and 
     any development with respect to such research.
       House bill: Section 5 of H.R. 4386 would require the 
     Secretary to develop and implement a comprehensive outreach 
     program and information system to provide Persian Gulf War 
     veterans and their families with information regarding VA's 
     Persian Gulf War Veterans Health Registry, access to health 
     services and health related benefits, compensation and other 
     benefits, and developments in research regarding the health 
     consequences of service in the Persian Gulf, and to establish 
     a toll-free telephone number for Persian Gulf War veterans 
     and their families.
       This section also would amend section 702(f) of Public Law 
     102-585 to require VA to establish a newsletter to be 
     distributed at least quarterly to all veterans listed on the 
     VA's Persian Gulf War Veterans Health Registry, or survivors 
     of such veterans. The newsletter would provide updates on the 
     status and findings of Government-sponsored research on 
     illnesses which may be related to the veteran's service in 
     the Persian Gulf theater of operations. The newsletter also 
     would include information regarding any VA or DOD 
     compensation and benefits, including health care and other 
     health-related benefits which may be available to Persian 
     Gulf War veterans or their family members from either VA or 
     DOD. The newsletter would be required to be prepared in 
     consultation with veterans service organizations.
       Senate bill: Section 4 of S. 2330 would require the 
     Secretary to develop and implement a comprehensive outreach 
     program to inform Persian Gulf veterans and their families of 
     medical care and other benefits that may be available to them 
     from VA and DOD. Subsection (b) would require that this 
     outreach program include a newsletter to be updated and 
     distributed at least annually to all veterans listed on VA's 
     Persian Gulf War Veterans Health Registry. The newsletter 
     would provide summaries of the status and findings of 
     Government-sponsored research on illnesses which may be 
     related to the veteran's service in the Persian Gulf theater 
     of opeations. The newsletter would also include information 
     regarding any VA benefits which may be available to Persian 
     Gulf veterans and their families. The newsletter would be 
     required to be prepared in consultation with veterans service 
     organizations.
       Subsection (c) of section 4 would require that the outreach 
     program include establishment of a toll-free number within 90 
     days after the enactment of the act to provide Persian Gulf 
     War veterans and their families informaiton about the Persian 
     Gulf War Veterans Health Registry, health care, and other 
     benefits provided by VA. In addition, the toll-free number 
     would provide any other information the Secretary considers 
     appropriate.
       Compromise agreement: Section 105 follows the Senate bill, 
     except that the secretary would be required to issue the 
     newsletter at least twice a year, and this requirement would 
     terminate on December 31, 1999.

Compensation benefits for disability resulting from illness attributed 
                 to service during the Persian Gulf War

       Current law: There is no provision in current law relating 
     specifically to compensation for Persian Gulf War veterans.
       House bill: Section 6 H.R. 4386 would amend title 38 to add 
     a new section 1117 which would require the Secretary to pay 
     compensation to any Persian Gulf veteran suffering from 
     a disability resulting from an undiagnosed illness that 
     became manifest to a degree of at least 10 percent before 
     October 1, 1996, or within 2 years after the veteran last 
     performed active service in the Southwest Asia theater of 
     operations, whichever is later. A veteran would not 
     receive compensation if there was affirmative evidence 
     that the disability was not incurred during service in the 
     Persian Gulf theater of operations during the Persian Gulf 
     War or if there was affirmative evidence showing that the 
     veteran suffered from an intercurrent injury or illness, 
     recognized to be a cause of the disability, between the 
     time of the veteran's departure from the Persian Gulf and 
     the onset of the disability.
       Payment of compensation under this provision would be for 3 
     years following enactment of the act, with an automatic 
     extension of 3 years if the Secretary reports to the 
     Committees on Veterans' Affairs of the Senate and the House 
     of Representatives prior to the end of the first 3-year 
     period that no diagnoses for the illnesses experienced by 
     Persian Gulf veterans can be made, based on then-current 
     medical knowledge. A report from the Secretary submitted to 
     the Committees would be due by no later than April 1, 1997.
       Senate bill: Section 2(a) of S. 2330 would amend title 38 
     to add a new section 1112A, which would provide the Secretary 
     with express general authority to conduct an inquiry when the 
     Secretary becomes aware of assertions that a group of 
     veterans with the same or similar military service share 
     similar diseases, illnesses, or medical signs or symptoms, 
     and that such health conditions are related to their service. 
     Such an inquiry would be carried out for the following 
     purposes: To determine whether veterans with the particular 
     military service in question have the claimed health 
     conditions; to identify all veterans who had such service to 
     determine which veterans have such health conditions; and to 
     determine whether a presumption of service connection should 
     be established for such health conditions.
       Under this new authority, if the Secretary determines that 
     a presumption of service connection for any such health 
     condition should be established, the Secretary would be 
     required to prepare a proposal for establishing such a 
     presumption. The proposal would be required to include a 
     description of the particular military service involved, the 
     health condition at issue, the relevant medical 
     characteristics associated with the health condition, and a 
     statement of any limitations on the period for which the 
     Secretary proposes to pay compensation.
       After completion of the proposal, the Secretary would be 
     required to submit a report to the Committees on Veterans' 
     Affairs of the Senate and House of Representatives, including 
     the proposal, as well as recommendations for legislation 
     concerning the establishment of the presumption and the 
     reasons for these recommendations.
       With specific respect to veterans of the Persian Gulf War, 
     section 2(c) of the Senate bill would require the Secretary 
     to report to the Committees, within 30 days of enactment of 
     the act, whether or not a presumption of service connection 
     should be established between service in the Southwest Asia 
     theater of operations and health conditions experienced by 
     Persian Gulf War veterans. If the Secretary determines that 
     such a presumption should be established, the Secretary, 
     pursuant to section 2(d) of the bill, would be required to 
     include in the report the elements of any report made under 
     the provisions of the new section 1112A and publish proposed 
     regulations relating to establishment of the presumption, 
     allowing 30 days for public notice and comment on the 
     proposed regulations. The Secretary would be required to 
     publish final regulations within 30 days following the 
     expiration of the public notice and comment period.
       Section 2(e) would set certain requirements for the 
     treatment of claims and compensation for Persian Gulf 
     veterans if based on a presumption of service connection 
     under the provisions of the Senate bill. First, an award of 
     compensation under the new regulations would not preclude 
     payment of retroactive benefits to a veteran with a claim 
     pending on the date of enactment of these provisions, if VA 
     later determines that the condition is service connected. 
     Second, the Secretary would be required to consider sending 
     all claims for compensation under the new regulations to one 
     regional office for adjudication for purposes of ensuring 
     consistency in rating decisions. Finally, VA would be 
     required to reopen and readjudicate any claims for service-
     connected disability compensation for a health condition 
     covered in the new regulations that were denied prior to 
     enactment of these provisions. These claims would be 
     considered original claims, and if compensation is eventually 
     awarded, the effective date of the award would be the date 
     the original claim was filed.
       Compromise agreement: Section 106 would amend title 38 to 
     add a new section 1117 which would provide the Secretary with 
     authority to pay compensation to any Persian Gulf veteran 
     suffering from a disability resulting from an undiagnosed 
     illness that became manifest during active duty in the 
     Southwest Asia theater of operations during the Persian Gulf 
     War or to a degree of 10 percent or more within a period to 
     be determined by the Secretary, based on a review of any 
     available credible medical or scientific evidence and a 
     review of the historic treatment afforded disabilities for 
     which manifestation periods have been established. The 
     Secretary also would be required to take into account other 
     pertinent circumstances regarding the experiences of Persian 
     Gulf veterans. The Secretary would be required to prescribe 
     regulations to implement this provision.
       New section 1117 would require the Secretary to include in 
     the regulations a specification of the manifestation period 
     of time following service in the Southwest Asia theater of 
     operations that the Secretary finds appropriate for a 
     presumption of service connection. In addition, the 
     regulations would have to include a description of the 
     particular military service involved, the illnesses for which 
     compensation may be paid, and the relevant medical 
     characteristics associated with each such illness.
       Section 106 also contains a freestanding provision that 
     would require the Secretary, within 60 days of enactment of 
     the act, to submit to the Committees on Veterans' Affairs of 
     the Senate and the House of Representatives a report 
     indicating whether or not the Secretary intends to pay 
     compensation under new section 1117. If the Secretary states 
     in the report to the Committees an intent to pay compensation 
     under new section 1117, the Secretary must publish proposed 
     regulations, as required by new section 1117, in the Federal 
     Register within 30 days of the date of the report.

Evaluation of health status of spouses and children of Persian Gulf war 
                                veterans

       Current law: Section 702 of Public Law 102-585 created a 
     Persian Gulf War Veterans Health Registry. Only veterans can 
     be included in this registry.
       House bill: No comparable provisions.
       Senate bill: Section 5 of S. 2330 would authorize the 
     inclusion of up to 10,000 dependents in the Persian Gulf War 
     Veterans Health Registry. VA would be required to conduct 
     medical examinations and testing, consultation, and 
     counseling for the dependent of any veteran who is listed in 
     the registry if the veteran believes that the illness of any 
     family member is related to the veteran's service in the Gulf 
     War. The registry would also include information about 
     miscarriages and stillbirths.
       The Secretary would be required to determine the types of 
     medical examinations and tests that are appropriate in order 
     to determine the nature and extent of the connection, if any, 
     between the illness or disorder of the individual and the 
     illness of the veteran. These examinations are expected to be 
     similar to registry exams for Gulf War veterans. These tests 
     may be provided by VA facilities or through contract with 
     non-Department facilities.
       Compromise agreement: Section 107, which is derived from 
     the Senate provision, would require VA to conduct a pilot 
     study, whereby VA would develop an evaluation protocol and 
     guidelines for medical examinations, tests, and consultations 
     with dependents of Gulf War veterans. These procedures would 
     be restricted to those dependents whose illness, birth 
     defects, or other disorder cannot be disassociated from the 
     veterans' service in the Gulf War. There is no limit on the 
     number of dependents who could be included in the registry; 
     however, the number may be limited by the cost since the bill 
     authorizes $2 million for the pilot study from November 1, 
     1994, through September 30, 1996. It would authorizes VA to 
     pay for the medical examinations, tests, and consultations 
     through contracts with non-VA facilities. In addition, 
     information provide by medical facilities that follow the VA 
     protocol or guidelines could also be included in the registry 
     even if the examinations and tests were not paid for by VA. 
     The compromise also includes a provision regarding outreach 
     to ensure that the maximum possible number of dependents 
     would be included in this research.
       The Committees expect that objective medical information on 
     miscarriages, still births, and birth defects can be included 
     in the registry at minimum cost. The Committees also urge the 
     VA to ensure that the pilot study is administered in such a 
     way as to ensure that the medical information that is 
     collected is sufficiently uniform, accurate, and appropriate 
     to the goals of the study.
       The purpose of the pilot study is to ensure that the VA 
     conduct research on the illnesses of Gulf War veterans' 
     spouses and children, using an existing data base and 
     objective medical information. The VA is required to prepare 
     a report to Congress describing the results of the pilot 
     study, focusing on any information about the possible 
     transmission of diseases associated with the Gulf War.
       The Committees expect VA to use funds from the medical care 
     account for the medical examinations and tests, data 
     analysis, and administration of the pilot study.

  Clarification of scope of health examinations provided for veterans 
          eligible for inclusion in health-related registries

       Current law: Under section 703 of the Persian Gulf War 
     Veterans' Health Status Act (Title VII of Public Law 102-
     585), VA is required to conduct medical examinations for any 
     veteran and the information from those exams must be included 
     in the Persian Gulf War Veterans' Health Registry.
       House bill: No comparable provision.
       Senate bill: Section 108 would clarify that the Persian 
     Gulf War Veterans' Health Registry includes diagnostic tests 
     in its definition of medical examinations.
       Compromise agreement: The compromise follows the Senate 
     provision.

                    Survey of Persian Gulf Veterans

       Current law: There is no authorization in current law for 
     VA to carry out a survey of Persian Gulf War veterans to 
     gather information about their health status.
       House bill: Section 8 of H.R. 4386 would require the 
     Secretary of VA, in coordination with the Secretary of 
     Defense, to carry out a survey of Gulf War veterans to gather 
     information about their health problems and the health 
     problems of family members.
       Senate bill: No comparable provision.
       Compromise agreement: Section 109 amends the House 
     provision, so that it authorizes the survey as described in 
     Section 8.
       The Committees note that under the National Defense 
     Authorization Act for FY 1995, Public Law 103-337, the 
     Department of Defense will be providing research grants to 
     non-Federal researchers to conduct similar research on Gulf 
     War veterans, and encourages VA to ensure that VA funded 
     research contributes unique information that will not be 
     available from DoD-funded research.

               Authorization for Epidemiological Studies

       Current law: Section 722 of the National Defense 
     Authorization Act for FY 1995, Public Law 103-337, requires 
     the Department of Defense to provide research funds to non-
     Federal scientists to conduct an epidemiological study or 
     studies of U.S. service members and civilians who 
     participated in the Persian Gulf War, and their families.
       House bill: Section 9 of H.R. 4386 would authorize VA to 
     conduct an epidemiological study or studies if such a study 
     is recommended by the National Academy of Sciences in the 
     report required by section 706(b) of the Veterans Health Care 
     Act of 1992 (Public Law 102-585).
       Senate bill: No comparable provision.
       Compromise agreement: Section 110 follows the House 
     provision.
       The Committees note that the National Defense Authorization 
     Act for FY 1995, Public Law 103-337, requires the Department 
     of Defense to provide research grants to non-Federal 
     researchers to conduct an epidemiological study or studies 
     of Gulf War veterans and their families. The Committees 
     therefore encourage the VA to coordinate their research 
     efforts to ensure that any epidemiological research funded 
     by VA contributes unique information that will not be 
     available from DoD-funded research.

                        Cost-savings provisions

       Current law: The Omnibus Budget Reconciliation Act of 1990 
     (OBRA 90), Public Law 101-508, amended section 3203 (now 
     section 5503) of title 38 to limit monthly VA pension 
     payments to $90 for Medicaid-eligible veterans with no 
     dependents who are in nursing homes. Previously, veterans 
     receiving nursing home care covered by Medicaid did not have 
     their pension benefits reduced; however, the amount of their 
     pension had to be applied toward the cost of the nursing home 
     care. No part of that $90 payment can be applied to the cost 
     of the veteran's nursing home care.
       Under OBRA 90, this provision was originally due to expire 
     September 30, 1992. The Veterans' Benefits Act of 1992 
     extended the provision through September 30, 1997, and added 
     a provision applying the limitation to payment of pension to 
     surviving spouses who have no dependents and are receiving 
     nursing home care covered by Medicaid. OBRA 93 extended the 
     provision through September 30, 1998.
       There is no comparable protection for any amount of 
     dependency and indemnity compensation (DIC) received by 
     surviving spouses in nursing homes participating in Medicaid. 
     The amount of their benefit payments, minus any amount 
     allowed by the State for personal use, is available to be 
     applied to the cost of their nursing home care.
       Section 1317 of title 38 prohibits any person eligible to 
     receive DIC based on a death after December 31, 1956, from 
     being eligible for death pension.
       There is no provision in current law which requires an 
     adjustment of the rates of compensation and DIC based on an 
     increase in the cost of living. However, Congress has passed 
     legislation providing for a cost-of-living adjustment in 
     these rates every year since 1976. With respect to 
     calculating the annual cost-of-living adjustment in the rates 
     of compensation and DIC, the Congressional Budget Office 
     budget baseline assumes normal rounding, under which 
     fractional dollar amounts of less than $0.50 are rounded down 
     and fractional dollar amounts of $0.50 and more are rounded 
     up.
       House bill: Section 11(a) of H.R. 4386 would amend section 
     1317 of title 38 to permit surviving spouses eligible to 
     receive DIC to elect to receive death pension under chapter 
     15 in lieu of DIC. This would permit surviving spouses who 
     are in Medicaid- covered nursing homes and who receive DIC to 
     elect to receive death pension, in order to be able to 
     retain $90 of their monthly benefits.
       Section 11(b) of H.R. 4386 would provide that, with respect 
     to any cost-of-living adjustment in the rates of compensation 
     under chapter 11 and DIC under chapter 13 provided for fiscal 
     year 1995, all increased rates (other than those equal to a 
     whole dollar amount) must be rounded down to the next lower 
     dollar.
       Senate bill: No comparable provision.
       Compromise agreement: Section 111 follows the House bill.


          title ii--board of veterans' appeals administration

       Current law: Before 1990, members of the Board of Veterans' 
     Appeals (BVA) had received pay and benefits comparable to 
     those received by Administrative Law Judges (ALJ's). However, 
     the Pay Act of 1990, Public Law 101-194, removed ALJ's from 
     the General Schedule, and thereby eliminated pay 
     comparability between BVA members and ALJ's.
       In 1988, Congress enacted the Veterans' Judicial Review Act 
     of 1988, Public Law 100-687, which changed Board members' 
     status (other than that of the Chairman) from permanent 
     appointments to 9-year terms, subject to the possibility of 
     reappointment. Under section 7101(b)(1) of title 38, the 
     Chairman is appointed by the President, with the advice and 
     consent of the Senate, for a term of 6 years.
       Currently, a member of the Board may be removed by the 
     Secretary, upon the recommendation of the Chairman. There are 
     no standards that govern removal or reappointment of members. 
     There is no statutory process for removal of a Board member. 
     However, section 7101(b) provides grounds under which the 
     President may remove the Chairman.
       House bill: Sections 301 through 303 of H.R. 4088 would 
     restore the pay comparability between members of BVA and 
     ALJ's and eliminate term limits for Board members (other than 
     the Chairman). These provisions also would require the 
     Chairman to establish job performance standards, with the 
     approval of the Secretary, and would require that reviews be 
     conducted not less than every 3 years. If the Chairman 
     recommended that the member be noncertified, the Secretary 
     would establish a panel of non-BVA employees of the 
     Department or Federal employees from outside the Department, 
     or a combination of VA and other Federal employees, to review 
     the member's case.
       Senate bill: Sections 302 through 304 of S. 2325 would 
     restore the pay comparability between members of BVA and 
     ALJ's, eliminate term limits for Board of Veterans' Appeals 
     members (other than the Chairman), require the establishment 
     of a peer review panel to periodically review the performance 
     and fitness of Board members, and clarify that those BVA 
     members who hold appointments through the Senior Executive 
     Service (SES) retain their SES pay and status.
       Compromise agreement: Section 201 would amend title 38 to 
     add a new section 7101A which would eliminate term limits for 
     Board members other than the Chairman and provide that 
     members of the Board (other than the Chairman and Board 
     members who are members of the SES) would receive the same 
     basic pay as received by ALJ's (unless that would result in a 
     reduction in pay). The pay provision would be effective on 
     the first day of the first pay period beginning after 
     December 31, 1994.
       Under new section 7101A, the provisions for pay 
     comparability with ALJ's and the elimination of term limits 
     would be accompanied by new provisions instituting a system 
     for periodic job performance review and recertification of 
     members of the Board (other than the Chairman and any member 
     who is a member of the SES). Section 7101A would require the 
     Chairman to establish a panel, to include the Chairman and 
     two other members of the Board (other than the Vice 
     Chairman), that would conduct reviews of the job performance 
     of Board members. The membership of this panel (other than 
     the Chairman) would rotate among all members of the Board.
       Section 7101A also would require that the Chairman, with 
     the approval of the Secretary, establish job performance 
     standards for Board members (except the Chairman and Board 
     members who are members of the SES), which are to be 
     objective and fair criteria for the evaluation of job 
     performance. Section 202 would require that the job 
     performance standards be established not later than 90 days 
     after the enactment date of this act. This section also would 
     require that the Secretary submit a report describing these 
     standards to the Senate and House Committees on Veterans' 
     Affairs no later than the date on which these standards take 
     effect.
       Within 1 year after the establishment of the job 
     performance standards, section 7101A would require that the 
     panel complete a review of the job performance of each member 
     of the Board. Reviews would then have to be conducted and 
     completed at least once every 3 years thereafter. If the 
     panel determines that a Board Member meets the performance 
     standards, the Chairman would recertify the Board member. If 
     a Board member does not meet the performance standards, the 
     Chairman would be required either to grant the Board member 
     conditional recertification or to recommend to the Secretary 
     that the member be noncertified. A conditional 
     recertification would require another review within 1 year 
     after the conditional recertification. If the Board member 
     does not meet the job performance standards after the 
     period of conditional recertification, the Chairman must 
     recommend to the Secretary that the member be 
     noncertified.
       If the Chairman recommends to the Secretary that a member 
     be noncertified, either a performance review or after a 
     period of a conditional recertification, the secretary would 
     be authorized to grant a conditional recertification or 
     determine that the member should be noncertified. If the 
     Secretary grants a conditional recertification, the 
     performance review panel would review the member's job 
     performance within 1 year and if the member still does not 
     meet the standards, the Chairman would be required to 
     recommend to the Secretary that the member be noncertified.
       If the Secretary determines that the member should be 
     noncertified, the member's appointment would be terminated 
     and the member removed from the Board. Any Board member whose 
     appointment is terminated and who was a career or career-
     conditional employee in the civil service prior to service on 
     the Board would revert to the civil service grade and series 
     held prior to appointment to the Board.
       Section 7101A would require the Secretary to prescribe 
     procedures for carrying out the provisions of the section, 
     including the deadlines and time schedules for the actions 
     required.
       Section 203 would amend section 7101(b)(3) to specify that 
     if the position of Chairman were to become vacant upon the 
     expiration of the Chairman's term, the current Chairman would 
     be authorized, with the approval of the Secretary, to 
     continue to serve as Chairman until the Chairman is appointed 
     to another term or a new Chairman is appointed. However, this 
     section would provide that the Chairman would not be able to 
     continue to serve under this provision beyond the end of the 
     Congress during which the term of office expired.


                  TITLE III--ADJUDICATION IMPROVEMENTS

        Acceptance of certain documentation for claims purposes

           Documents to be accepted as proof of relationships

       Current law: Until recently, VA's regulations did not allow 
     acceptance of photocopies of documents that were not 
     certified as evidence to show marriage, the annulment of a 
     marriage, birth, the relationship of a child to the veteran, 
     or death, or of any evidence from a foreign country (sections 
     3.202(c); 3.204(b) and (c); 3.205(a); 3.207(b); 3.209; 3.210; 
     and 3.211 of title 38, Code of Federal Regulations). A 
     photocopy could only be accepted if the original document 
     had been viewed by an authorized individual and was 
     certified as a true and exact copy of the original 
     document. This requirement of certification existed only 
     in VA's regulations; it was not a statutory requirement.
       On September 8, 1994, VA published interim regulations to 
     amend sections 3.202(c), 3.204 (b) and (c), 3.205(a), 
     3.207(b), 3.209 (a) and (b), 3.210 (b) and (c), and 3.211 (a) 
     and (d) of title 38, Code of Federal Regulations, to 
     implement the Secretary's decision to allow VA to accept 
     photocopies of documents necessary to establish marriage, the 
     annulment of a marriage, birth, the relationship of a child 
     to the veteran, or death, or of any evidence from a foreign 
     country for purposes of processing claims for VA benefits. 
     Under these regulations, VA would still have the authority to 
     request certified documentation in cases in which it is 
     questionable whether the photocopies are genuine and free 
     from alteration.
       House bill: Section 405(a) of H.R. 4088 would amend title 
     38 to add a new section 5124 which would provide that, for 
     purposes of determining eligibility for benefits, VA must 
     accept a written statement from a claimant as proof of 
     marriage, dissolution of a marriage, birth of a child, and 
     death of any family member. The Secretary would be authorized 
     to require the submission of documentation in support of the 
     claimant's statement if the claimant does not reside in a 
     State, or if the statement on its face raises a question as 
     to its validity.
       Senate bill: Section 202 of S. 1908 is a freestanding 
     provision that would allow VA to accept photocopies of 
     documents as proof of marriage, dissolution of marriage, 
     birth, or death for purposes of determining eligibility for 
     certain VA benefits. The Secretary would be authorized to 
     require the claimant to submit additional supporting 
     documentation if the document on its face raises a question 
     with respect to its validity, or if there is reasonable 
     indication of fraud or misrepresentation, in the document or 
     otherwise.
       Compromise agreement: Section 301(a) would amend title 38 
     to add a new section 5124 which would allow the Secretary to 
     accept a statement from the claimant as evidence of marriage, 
     dissolution of a marriage, birth of a child, or death of a 
     family member for purposes of VA benefits. The Secretary 
     would be authorized to require documentation in support of 
     the statement if the claimant does not reside in a State, if 
     the statement on its face raises a question as to its 
     validity, if there is conflicting information in the record, 
     or if there is reasonable indication of fraud or 
     misrepresentation in the document or otherwise.
       The Secretary is encouraged to exercise the authority 
     granted under this section to the maximum extent feasible.

              Acceptance of private physician examinations

       Current law: Currently, under section 3.326 of title 38, 
     Code of Federal Regulations (as amended by 59 Fed. Reg. 35851 
     (July 14, 1994)), VA generally requires a VA examination for 
     purposes of determining eligibility for disability benefits. 
     However, section 3.326(d) permits VA to accept the statement 
     of a private physician in the following cases: (1) A claim 
     for increased compensation due to an increase in the severity 
     of a service-connected disability or due to the need of the 
     veteran's spouse for aid and attendance; (2) a veteran's 
     pension claim, including a claim for housebound or aid and 
     attendance benefits; (3) a surviving spouse's claim for 
     housebound or aid and attendance benefits; (4) a surviving 
     spouse's claim for aid and attendance benefits; or (5) a 
     claim by or on behalf of a child who is permanently incapable 
     of self-support.
       House bill: Section 405(b) of H.R. 4088 would amend title 
     38 to add a new section 5125 which would require VA to accept 
     the medical examination report of a private physician in 
     support of a claim for benefits, without further examination 
     by a physician employed by the Veterans Health 
     Administration, if the report is sufficiently complete to be 
     adequate for disability rating purposes.
       Senate bill: Section 203 of S. 1908 is a freestanding 
     provision which would allow VA to accept the medical 
     examination report of a private physician in support of a 
     claim for disability compensation or pension. Under this 
     provision, a private physician's report would be required to 
     contain sufficient clinical data to support the diagnosis or 
     provide a reliable basis for a disability rating.
       Compromise agreement: Section 301(b) would amend title 38 
     to add a new section 5125 which would allow the Secretary to 
     accept the medical examination report of a private physician 
     in support of any claim for VA compensation or pension, 
     without a requirement for confirmation by an examination by a 
     VA physician, if the report is sufficiently complete to be 
     adequate for purposes of adjudicating the claim.
       It is the express intention of the House and Senate 
     Committees on Veterans' Affairs that, to the maximum extent 
     feasible, the Secretary exercise the authority provided under 
     this section as being in the best interest of veterans in 
     furthering the timely adjudication of their claims for 
     compensation by reducing the need for duplicative medical 
     examinations by VA physicians.

                 Expedited treatment or remanded claims

       Current law: Section 7101 of title 38 provides that appeals 
     to the Board of Veterans' Appeals (BVA) will be considered 
     and decided in order according to their docket number. There 
     is no statutory requirement governing the treatment of claims 
     on remand to the Board from the Court of Veterans Appeals or 
     to regional offices from the Board.
       House bill: Section 406 of H.R. 4088 is a freestanding 
     provision that would require the Secretary to take such 
     actions as may be necessary to provide that claims remanded 
     by the BVA to regional offices or by the Court of Veterans 
     Appeals to the Board be treated expeditiously.
       Senate bill: No comparable provision.
       Compromise agreement: Section 302 follows the House bill.

                          Screening of appeals

       Current law: Under section 7107 of title 38, appeals are 
     considered and decided in order according to their docket 
     numbers.
       House bill: Section 407 of H.R. 4088 would amend section 
     7107 to permit the Board to screen cases on appeal at any 
     point in the decision process (a) to determine whether the 
     record is adequate for decisional purposes or (b) for the 
     development or attempted development of a record that is 
     inadequate for decisional purposes.
       Senate bill: No comparable provision.
       Compromise agreement: Section 303 follows the House bill.

 Report on feasibility of reorganization of adjudication divisions in 
                          VBA regional offices

       Current law: Currently, the administration of VA's 
     compensation and pension programs is carried out in the 58 
     regional offices of the Veterans Benefits Administration, 
     located in the 50 states, the District of Columbia, Puerto 
     Rico, and the Republic of the Philippines. Each of these 
     offices, except one, has an adjudication division.
       House bill: Section 402 of H.R. 4088 would require the 
     Secretary of Veterans Affairs to submit to the House and 
     Senate Committees on Veterans' Affairs, within 180 days of 
     enactment of this act, a report addressing the feasibility 
     and impact of a reorganization of VA claims adjudication 
     divisions to a number of such divisions that would result in 
     improved efficiency in the processing of claims.
       Senate bill: No comparable provision.
       Compromise agreement: Section 304 follows the house bill.


           title iv--veterans' claims adjudication commission

       Current law: There is no provision in current law relating 
     to a study of VA's system for adjudicating claims for 
     benefits.
       House bill: No comparable provision.
       Senate bill: Section 101 of S. 1908 is a freestanding 
     provision that would require an independent, comprehensive 
     18-month study by the Administrative Conference of the United 
     States of VA's system for adjudicating benefit claims at the 
     regional office level and the appellate process at the Board 
     of Veterans' Appeals (BVA).
       The purpose of the study would be to evaluate the entire 
     adjudication system in order to determine the efficiency of 
     its processes and procedures, including the impact of 
     judicial review on the system, means for reducing the backlog 
     of pending cases in the system, and means for improving 
     timeliness and quality of the claims process.
       The study would be required to contain an evaluation and 
     assessment of the entire claims adjudication system, 
     including its historical development and the effect that the 
     Veterans' Judicial Review Act of 1988 has had on the system; 
     how claims are prepared and submitted; the procedures that 
     exist for processing claims; the participation of attorney 
     and nonattorney advocates in the system; VA's efforts to 
     modernize its information management system; the impact of 
     work performance standards at all levels of the claims 
     process; the extent of implementation of the recommendations 
     of the Blue Ribbon Panel on Claims Processing; the 
     application of pilot programs initiated in regional offices; 
     and the effectiveness of quality control and assurance 
     practices.
       In the course of its evaluation and study, ACUS would be 
     required to consult with representatives of veterans service 
     organizations and other organizations and entities 
     representing veterans before VA, to include individuals who 
     furnish such representation.
       No later than 90 days following the enactment date of the 
     legislation, VA would be required to provide ACUS and the 
     Senate and House Committees on Veterans' Affairs with 
     information deemed necessary by the chairman of ACUS for 
     purposes of conducting the study, including specific 
     statistical information concerning the adjudication of 
     claims during the 5-year period October 1, 1988, through 
     September 30, 1993.
       Within 1 year after the date of enactment, ACUS would be 
     required to submit to the Secretary and the Committees a 
     preliminary report on the study. This preliminary report 
     would contain the initial findings and conclusions of ACUS 
     regarding the evaluation and assessment required. The 
     preliminary report would not be required to include any 
     recommendations for improving the system.
       Within 18 months following enactment, ACUS would be 
     required to submit a full report on its study to the 
     Secretary and the Committees. The report would include: (1) 
     The findings and conclusions of ACUS with respect to the 
     study; (2) the recommendations of ACUS for improving the VA 
     adjudication system; and (3) any other information and 
     recommendations concerning the system that ACUS deems 
     appropriate.
       An appropriation of $150,000 would be authorized to VA for 
     payment to ACUS for the costs associated with conducting the 
     study and completing the report to be submitted to the 
     Secretary and the Committees.
       Compromise agreement: Title IV would require the 
     establishment of an independent commission to study VA's 
     system for the disposition of claims for benefits, both at 
     the regional office level and at the Board of Veterans' 
     Appeals. Section 401 would require that the commission be 
     composed of nine members, all to be appointed by the 
     Secretary of Veterans Affairs by February 1, 1995. The 
     membership of the commission would be required to be composed 
     of the following: One member who is a former VA official; two 
     members from the private sector who have expertise in the 
     adjudication of claims relating to insurance or similar 
     benefits; two members who are employed in the Federal 
     Government, outside VA, who have expertise in the 
     adjudication of claims for Federal benefits other than VA 
     benefits; two members who are representatives of veterans 
     service organizations; one member recommended by the American 
     Bar Association or a similar private organization who has 
     expertise in administrative law issues; and one member who 
     currently is a VA official.
       Section 401 also would require that the commission hold its 
     first meeting within 30 days after the last of the members 
     has been appointed. Meetings would take place at the call of 
     the chairman. The Secretary would be required to designate a 
     member of the commission, other than the member who is a 
     current official of the Department, to be the chairman.
       Section 402(b), regarding the purposes of the study, is 
     generally similar to section 101(b) of the Senate bill.
       Senate 402(c), regarding the contents of the study, is 
     substantially similar to section 101(c) of the Senate bill. 
     This section would require that the study consist of a 
     comprehensive evaluation and assessment of VA's system for 
     the disposition of claims and benefits delivery and any 
     related issues the commission determines are relevant to such 
     a study. However, section 402(c) would not include a specific 
     requirement that the commission evaluate the historical 
     development of the system and the effect that the Veterans' 
     Judicial Review Act of 1988 has had on the system.
       Section 402(d) would require the Secretary to submit to the 
     commission and the Committee on Veterans' Affairs any 
     information which the Chairman has determined necessary to 
     carry out the study, not later than 30 days from the date on 
     which the Chairman makes a request for such information.
       Section 402(e), regarding the contents and timing of the 
     preliminary and final reports required of the commission, is 
     identical to section 101(f) of the Senate bill, requiring a 
     preliminary report within 1 year of enactment of the act and 
     a final report within 18 months of enactment.
       Section 407 would authorize that $400,000 be made available 
     from amounts appropriated to VA for fiscal year 1995 for the 
     payment of compensation and pension for the activities of the 
     commission.


           title v--miscellaneous benefits-related provisions

  Restatement of intent of Congress concerning coverage of Radiation-
               Exposed Veterans Compensation Act of 1988

                       Radiation risk activities

       Current law: The Radiation-Exposed Veterans Compensation 
     Act of 1988, Public Law 100-321, enacted on May 1, 1988, 
     added a subsection (c) to section 1112 of title 38 which 
     established a presumption of service connection for 13 
     cancers suffered by veterans who participated in a 
     ``radiation risk activity,'' defined as participation in an 
     atmospheric test of nuclear devices, involvement in the 
     occupation of Hiroshima and Nagasaki following World War II, 
     or internment as a prisoner of war in Japan during World War 
     II that might have resulted in exposure comparable to the 
     occupation forces. Two additional cancers were added to this 
     subsection by Public Law 102-578. On September 8, 1994, the 
     Secretary published in the Federal Register a proposed 
     amendment to section 3.309(d), Code of Federal Regulations, 
     which would extend the presumption of service connection, and 
     therefore eligibility for compensation, to U.S. veterans 
     who participated in atmospheric nuclear tests conducted by 
     Allied Governments.
       House bill: Section 501(a) of H.R. 4088 would amend section 
     1112(c) of title 38 to clarify that participation in 
     atmospheric testing of nuclear devices includes non-U.S. 
     tests. The effective date of the amendment would be May 1, 
     1988, the date of enactment of Public Law 100-321.
       Senate bill: No comparable provision.
       Compromise agreement: Section 501(a) follows the House 
     bill, except that the effective date of the amendment would 
     the date of enactment of the act.

  Service connection for certain disabilities relating to exposure to 
                           ionizing radiation

       Current law: The ``Veterans' Dioxin and Radiation Exposure 
     Compensation Standards Act,'' Public Law 98-542, required VA 
     to establish standards for adjudicating claims based on 
     exposure to Agent Orange and radiation. VA adopted 
     regulations for those claims in sections 3.311a and 3.31b of 
     title 38, Code of Federal Regulations.
       The United States Court of Veterans Appeals in Combee v. 
     Principi, 4 Vet.App. 78 (1993), held that a veteran may not 
     establish direct service connection for a disability based on 
     radiation exposure unless the disability is on VA's 
     regulatory list of ``radiogenic diseases'' issued pursuant to 
     Public Law 98-542. the essence of the Court's decision was 
     that by establishing a process in Public Law 98-542 relating 
     to claims based on radiation exposure, Congress repealed the 
     general compensation law as to such claims. This decision was 
     reversed by the United States Court of Appeals for the 
     Federal Circuit in Combee v. Brown, No. 93-7101 (Fed. Cir. 
     Sept. 1, 1994).
       At a March 24, 1994, hearing of the Senate Committee on 
     Veterans' Affairs on this bill and other pending legislation, 
     Under Secretary for Benefits R. John Vogel announced 
     Secretary Brown's intention to publish a proposed amendment 
     to the regulation to ``permit a veteran to establish direct 
     service connection for disability resulting from a disease 
     claimed to be caused by radiation exposure even if that 
     disease is not included in the list of diseases VA already 
     recognizes as radiogenic.'' As of the date of passage of this 
     legislation, VA has not published a proposed regulation to 
     implement this change.
       House bill: Section 501(b)(1) of H.R. 4088 would amend 
     section 1113(b) of title 38, which provides that the 
     provisions of law governing statutory presumptions may not be 
     construed to prevent the establishment of service connection 
     on a direct basis. The amendment would add a reference to 
     the provisions of Public Law 98-542 to the provisions 
     governing statutory presumptions, thereby affirming a 
     claimant's right to attempt to establish direct service 
     connection for a disability associated with exposure to 
     ionizing radiation. This section applies to claims 
     submitted after the date of enactment.
       Senate bill: Section 301 of s. 1908 has the same intent as 
     the House provision, but accomplished that goal through a 
     proposed amendment to Public Law 98-542 in order to clarify 
     Congress' intent in enacting the law. The amendment to Public 
     Law 98-542 would add a new section, specifying that the 
     regulations adopted by VA under the statute may prohibit a 
     veteran who served during an eligible period of service from 
     establishing direct service connection for a disease or 
     disability based on exposure to radiation, even though the 
     veteran's condition is not considered by VA to be a 
     ``radiogenic disease.''
       Compromise agreement: Section 501(b) follows the House 
     bill.

 Extension of authority to maintain regional office in the Philippines

       Current law: Under section 315(b) of title 38, the 
     Secretary currently has the authority to maintain a regional 
     office in the Republic of the Philippines until December 31, 
     1994.
       House bill: Section 502 of H.R. 4088 would extend the 
     Secretary's authority to maintain the regional office in the 
     Republic of the Philippines until December 31, 1999.
       Senate bill: No comparable provision.
       Compromise agreement: Section 502 follows the House bill.

                     Renouncement of benefit rights

       Current law: Under section 5306 of title 38, if a claimant 
     renounces his or her right to VA pension, compensation, or 
     dependency and indemnity compensation, and subsequently 
     reapplies, the new claim is treated as an original claim. 
     Therefore, for purposes of any income-based program (pension 
     or parents' DIC), only prospective income may be considered 
     in determining the claimant's eligibility.
       House bill: Section 503 of H.R. 4088 would amend section 
     5306 to provide that an application filed for non-service-
     connected pension under chapter 15 of title 38, or parents' 
     DIC under chapter 13 of title 38, made within 1 year of a 
     renouncement of such benefits, will not be treated as an 
     original claim and benefits will be paid as though the 
     renouncement had not occurred.
       Senate bill: No comparable provision.
       Compromise agreement: Section 503 follows the House 
     provision.

    Clarification of payment of attorney fees under contingent fee 
                               agreements

       Current law: Under section 5904(d) of title 38, an attorney 
     otherwise authorized to collect a fee for representation in a 
     VA case may receive payment for such representation directly 
     from VA out of a retroactive benefit award, provided that the 
     total fee not exceed 20 percent of the amount of any past-due 
     benefits awarded to the appellant, and provided that the fee 
     is contingent upon whether or not the claim is ultimately 
     resolved in favor of the appellant.
       House bill: No comparable provision.
       Senate bill: Section 4 of S. 1546 would amend 5904(d) to 
     clarify that an attorney may receive payment for 
     representation in proceedings before VA or the Court of 
     Veterans Appeals directly from VA out of a retroactive 
     benefit award only if the total amount of the fee is 
     contingent upon the claim being resolved in favor of the 
     appellant.
       Compromise agreement: Section 504 follows the Senate bill.

       Codification herbicide-exposure presumptions established 
                            administratively

       Current law: The Agent Orange Act of 1991, Public Law 102-
     4, enacted on February 6, 1991, established a statutory 
     presumption of service connection for three conditions 
     resulting from exposure to herbicides in the Republic of 
     Vietnam during the Vietnam era: chloracne, soft-tissue 
     sarcoma, and non-Hodgkin's lymphoma. In addition, the act 
     required VA to contract with the National Academy of Sciences 
     for a review of the scientific literature on the health 
     effects of exposure to herbicides. NAS was required to report 
     its findings to the Secretary, who then was required to 
     decide whether presumptions of service connection should be 
     established for any of the conditions considered by NAS. In 
     1993, following the submission by NAS of the first report 
     under the act, the Secretary announced decisions to add to 
     the presumptive list Hodgkin's disease, porphyria cutanea 
     tarda, respiratory cancers (lung, trachea, bronchus, and 
     larynx), and multiple myeloma. VA has finalized regulations 
     to implement these decisions, found in section 3.309(e) of 
     title 38, Code of Federal Regulations.
       House bill: Section 201 of H.R. 4088 would amend section 
     1116 of title 38 to codify the presumptions of service 
     connection based on exposure to herbicides for Hodgkin's 
     disease, porphyria cutanea tarda, respiratory cancers (lung, 
     trachea, bronchus, and larynx), and multiple myeloma 
     established administratively by the Secretary.
       Senate bill: No comparable provision.
       Compromise agreement: Section 505 follows the House bill.

  Treatment of certain income of Alaska Natives for purposes of needs-
                             based benefits

       Current law: Under current law, VA pays disability pension 
     to non-service-connected wartime veterans whose annual 
     incomes fall below levels specified in section 1521 of title 
     38 and who meet other qualifying criteria specified by 
     statute. For purposes of computing annual income (and, thus, 
     determining eligibility for pension and the amount of 
     benefits paid), VA takes into account ``all payments of any 
     kind or from any source'' received by the veteran, except as 
     specified in section 1503 of title 38, or as otherwise 
     excepted by law.
       The Alaska Natives Claims Settlement Act, Public Law 92-
     203, codified at 43 U.S.C. section 1601 et seq. (ANCSA), sets 
     forth the provisions under which the aboriginal land claims 
     of Alaska's Native peoples were settled. ANCSA authorized the 
     creation of 12 Native-owned and -operated regional 
     corporations to administer assets transferred under the act 
     for the benefit of Alaska Native shareholders. These 
     corporations continue to exist today, and they distribute 
     funds received in settlement of Native land claims and funds 
     generated from corporate earnings to Native village 
     corporations and to Alaska Native shareholders.
       House bill: No comparable provision.
       Senate bill: Section 5 of S. 1626 would amend section 
     1503(a) by adding a new paragraph (11), to exclude payments 
     received from Alaska Native corporations under ANCSA from the 
     calculation of income for purposes of determining eligibility 
     for VA pension, but only to the extent that these payments 
     are excluded for purposes of other means-tested Federal 
     benefits programs as specified in ANCSA.
       Compromise agreement: Section 506 would establish a 
     freestanding provision of law which reflects the intent of 
     the Senate bill.

     Elimination of requirement for payment of certain benefits in 
                            Philippine pesos

       Current law: Sections 107, 3532(d) and 3565(b)(1) of title 
     38, provide that VA benefits paid to certain eligible 
     veterans in the Republic of the Philippines will be paid in 
     Philippine pesos.
       House bill: No comparable provision.
       Senate bill: Section 402 of S. 2325 would amend sections 
     107, 3532(d), and 3565(b)(1) of title 38 to eliminate the 
     requirement that certain VA benefits paid to eligible 
     veterans in the Republic of the Philippines be paid in pesos, 
     thereby allowing VA to issue regulations in order to comply 
     with the requests of the Department of State and Treasury 
     that such restrictions be eliminated.
       Compromise agreement: Section 507 follows the Senate bill.

 Study of health consequences for family members of atomic veterans of 
           exposure of atomic veterans to ionizing radiation

       Current law: There is no provision in current law relating 
     to a study of the family members of atomic veterans.
       House bill: No comparable provision.
       Senate bill: Section 401 of S. 2325 would require the VA to 
     enter into a contract with the Medical Follow-up Agency of 
     the National Academy of Sciences, or a similar research 
     entity, to convene an expert panel to determine the 
     feasibility of a study of reproductive problems among atomic 
     veterans. MFUA would be required to convene the panel and 
     report their findings to Congress within 180 days. If MFUA 
     concludes that such a study would be feasible, VA would be 
     required to seek to enter into a contract with MFUA or a 
     similar research entity to conduct such a study.
       Compromise agreement: Section 509 is derived from the 
     Senate provision but would delete the authorization for the 
     research project itself, while maintaining the requirement 
     that VA enter into a contract with MFUA to convene an expert 
     panel to determine the feasibility of such research.

       Center for minority veterans and center for women veterans

       Current law: Section 317 of title 38 requires the Secretary 
     to designate one Assistant Secretary as VA's Chief Minority 
     Affairs Officer (CMAO) with overall responsibility for 
     assessing the needs of minority and women veterans, and for 
     evaluating VA policies, regulations, programs, and other 
     activities as they affect such veterans. Section 542 of title 
     38 establishes a VA advisory Committee on Women Veterans and 
     requires that the Committee consist of representatives of 
     women veterans, experts in fields pertinent to the needs of 
     women veterans, and representatives of both male and female 
     veterans with service-connected disabilities.
       House bill: H.R. 3013 would add a new section to Chapter 3 
     of title 38 to (a) establish a Center for Women Veterans in 
     the Department of Veterans Affairs; (b) provide that the 
     Director of the Center would report directly to the Secretary 
     or the Deputy Secretary concerning the activities of the 
     Center; (c) specify the functions for which the Director 
     would be responsible; (d) require the Secretary to ensure 
     that the Director is furnished with sufficient resources in 
     order to carry out the functions of the Center in a timely 
     manner; and (e) require that VA's documents regarding the 
     budget include information about the Center.
       Senate bill: S. 2429 would (a) create an Office for 
     Minority Veterans which is similar in structure and purpose 
     to the Center for Women Veterans in the House bill, in order 
     to assist minority veterans; (b) establish an Advisory 
     Committee on Minority Veterans; (c) designate a minority 
     veterans representative at each VA facility; (d) create an 
     Office for Women Veterans, which is substantively identical 
     to the Center for Women Veterans established in the House 
     bill; and (e) require that a representative of women veterans 
     who have served in combat and a representative of those who 
     have not served in combat serve on the Advisory Committee on 
     Women Veterans.
       Compromise agreement: Section 509 contains provisions 
     derived from the House bill and the Senate bill which would 
     establish a Center for Minority Veterans and a Center for 
     Women Veterans.

                Advisory Committee on Minority Veterans

       Current law: There is no current law regarding the 
     establishment of a VA Advisory Committee for Minority 
     Veterans.
       House bill: No comparable provision.
       Senate bill: Section 2 of S. 2429 would (a) require the 
     Secretary to establish an Advisory Committee for Minority 
     Veterans; (b) require the Committee membership to represent 
     certain groups relating to minority veterans; and (c) require 
     the Committee to submit a report to the Secretary, not later 
     than July 1 of each even-numbered year, which assesses the 
     needs of and programs for minority veterans, and require the 
     Secretary to share this report with Congress.
       Compromise agreement: Section 510 follows the Senate bill, 
     except that the statutory requirement to have an Advisory 
     Committee for Minority Veterans would be for a period of 
     three years.

     Mailing of notices of appeal to the Court of Veterans Appeals

       Current law: Under section 7266 of title 38, in order to 
     obtain review of a final BVA decision by the United States 
     Court of Veterans Appeals, an appellant must file a notice of 
     appeal with the Court within 120 days after the date on which 
     the notice of the BVA decision is mailed under section 
     7104(e). The Court implemented this statutory provision 
     through adoption of Rule 4 of the Court's Rules of Practice 
     and Procedure, which requires that a notice of appeal must 
     actually be received by the Court within the statutory time 
     limit in order to be timely filed. In a series of decisions, 
     the Court has dismissed for lack of jurisdiction appeals that 
     were mailed before, but received by the Court after, the 120-
     day limit had expired. (See, e.g., DiDonato v. Derwinski, 2 
     Vet. App. 42 (1991)).
       Rule 4 of the Court's Rules of Practice and Procedure also 
     allows the filing of a notice of appeal by ``facsimile or 
     other printed electronic transmission.''
       House bill: No comparable provision.
       Senate bill: Section 3 of the S. 1546 would amend section 
     7266(a) of title 38 to require that a notice of appeal be 
     deemed received by the Court on the date it is postmarked, if 
     it is mailed. Only legible United States Postal Service 
     postmarks would be sufficient. The Court's determination as 
     to the legibility of a postmark would be final and not 
     subject to review by any other court.
       Under amended section 7266(a), if a notice of appeal is 
     delivered to the Court (for example, by private courier or 
     delivery service), it would be considered timely filed if it 
     is received by the Court within the 120-day limit established 
     by Congress.
       Section 3(b) of the Senate bill would provide that the 
     effective date of the amendment to section 7266(a) would be 
     the date of the enactment of the act and would apply only to 
     notices of appeal delivered or mailed to the Court on or 
     after that date.
       Compromise agreement: Section 511 following the Senate 
     bill, except that it also would require specifically that the 
     notice of appeal be properly addressed to the Court.


                TITLE VI--EDUCTION AND TRAINING PROGRAMS

                            Flight training

       Current law: Sections 3034(d) and 3241(b) of title 38, and 
     Section 2136(c) of title 10, allow eligible persons to use VA 
     educational benefits for approved programs of vocational 
     flight training commencing before October 1, 1994.
       House bill: Section 2 of H.R. 4768 would establish 
     vocational flight training as a permanent program under 
     chapters 30 and 32 of title 38, and chapter 106 of title 10.
       Senate bill: Section 1 of S. 2094 is substantively 
     identical to the House provision, except that the Senate bill 
     specifies that the provision would take effect on October 1, 
     1994.
       Compromise agreement: Section 601 follows the Senate bill.

    Training and rehabilitation for veterans with service-connected 
                              disabilities

       Current law: Section 3115 of title 38 authorizes vocational 
     rehabilitation programs providing training or work experience 
     for service-disabled veterans to be implemented through 
     Federal, State, city, and local governments.
       House bill: Section 3 of H.R. 4768 authorizes the use of 
     Indian reservations for the purposes of section 3115 of title 
     38, in order to allow eligible veterans to participate in 
     non-pay programs of on-the-job training on Indian 
     reservations.
       Senate bill: No comparable provision.
       Compromise agreement: Section 602 follows the House bill.

               Alternative teacher certification programs

       Current law: Section 3452(c) of title 38 defines the term 
     ``educational institution'' for the purposes of chapters 34 
     and 36 of title 38.
       House bill: Section 4 of H.R. 4768 would add to the 
     definition of the term ``educational institution'' as 
     described in section 3452(c), for the purposes of chapters 34 
     and 36, entities which provide training required for 
     completion of any State-approved alternative teacher 
     certification program as determined by the Secretary, 
     effective upon enactment for the period ending September 30, 
     1996.
       Senate bill: No comparable provisions.
       Compromise agreement: Section 603 follows the House bill.

                   Education outside the United States

       Curent law: Section 3476 of title 38 denies education 
     benefits to eligible individuals who pursue a course of 
     education not in a State unless that course is pursued at an 
     approved institution of higher learning and the course is 
     approved by the Secretary.
       House bill: Section 5 of H.R. 4768 would amend section 3476 
     to remove the requirement that courses offered by approved 
     foreign universities and colleges be located at the site of 
     the approved institution in order for such courses to be 
     eligible for approval by the Secretary.
       Senate bill: No comparable provision.
       Compromise agreement: Section 604 follows the House bill.

                         Correspondence courses

       Current law: Section 3672 of title 38 does not specifically 
     address the requirements for approval of correspondence or 
     combination correspondence-residence programs or courses.
       House bill: Section 6 of H.R. 4768 would add to section 
     3672 of title 38 a provision requiring that a correspondence 
     program or combination correspondence-residence course is 
     eligible for approval by State Approving Agencies only if the 
     educational institution offering such program or course is 
     accredited by an agency recognized by the Secretary of 
     Education. This section would also add a provision to section 
     3672 requiring that no less than 50 percent of the graduates 
     of any such program or course take a minimum of 6 months to 
     complete the program or course.
       Senate bill: No comparable provision.
       Compromise agreement: Section 605 follows the House bill 
     except that the word ``agency'' is changed to ``entity.''

                        State approving agencies

       Current law: Section 3674(a)(4) of title 38, relating to 
     payments by VA to State and local agencies for reasonable 
     expenses associated with approval of courses of education, 
     limits the total amount made available under that section to 
     $12,000,000 per fiscal year. Section 3674A(a)(3) requires the 
     Secretary to functionally supervise course approval services.
       House bill: Section 7 of H.R. 4768 would amend section 
     3674(a)(4) to increase the maximum amount available under the 
     section to $13,000,000 per fiscal year, and would strike 
     sections 3674(a)(3)(B) and 3674A(a)(3), thereby eliminating 
     the reporting and supervision requirements contained therein.
       Senate bill: No comparable provision.
       Compromise agreement: Section 606 follows the House bill.

                         Measurement of courses

       Current law: Under Section 3688(b) of title 38, the 
     Secretary defines full and part-time training for purposes of 
     courses pursued under chapters 30, 32, 35, or 36.
       House bill: Section 8 of H.R. 4768 would add chapter 106 of 
     title 10 to the sources of educational and training benefits 
     for which the Secretary will define full and part-time 
     training.
       Senate bill: No comparable provision.
       Compromise agreement: Section 607 follows the House bill.

               Veterans' Advisory Committee on Education

       Current law: Section 3692 of title 38 establishes a 
     Veterans' Advisory Committee on Education which shall remain 
     in existence unit December 31, 1994. The Secretary is 
     required to consult with and seek the advice of the committee 
     with respect to the administration of chapters 30, 32, 34, 
     35, and 36 of title 38.

       House bill: Section 9 of H.R. 4768 would extend the 
     Advisory Committee until December 31, 2003, and make 
     technical changes to the Committee's mandate.
       Senate bill: No comparable provision.
       Compromise agreement: Section 608 follows the House bill.

             Contract educational and vocational counseling

       Current law: Section 3697(b) of title 38 limits payments 
     made under section 3697 for contractual educational and 
     vocational counseling services to $5,000,000 in any fiscal 
     year.
       House bill: Section 10 of H.R. 4768 would amend section 
     3697(b) to raise the payment limitation to ``$6,000,000,'' 
     effective October 1, 1994.
       Senate bill: No comparable provision.
       Compromise agreement: Section 609 follows the House bill.

    Service Members Occupational Conversion and Training Act of 1992

       Current law: The Service Members Occupational Conversion 
     and Training Act (SMOCTA), enacted by Public Law 102-484, 
     authorizes payment of a subsidy to employers who train 
     recently separated service members who are unemployed, whose 
     military skills do not transfer to the civilian job market, 
     or who are disabled. The subsidy is 50 percent of the 
     starting training wage payable over a period of 18 months up 
     to a maximum of $10,000 ($12,000 for disabled veterans). 
     Under current law, the 18-month limitation on payment of the 
     subsidy is phased in terms of an 18-month limit on the period 
     of training.
       House bill: Section 11 of H.R. 4768 would allow the 
     employer and veteran to agree to a training program that 
     lasts longer than 18 months, but with no payment of a subsidy 
     for the extended training period. The provision would also: 
     a) Clarify that the requirement in current law that employers 
     pay a comparable wage refers to wages paid in the community 
     where the veteran is being trained; b) clarify that payment 
     of the subsidy is limited to an 18-month period, or the 
     equivalent where the length of a training program is 
     calculated in hours; c) amend the requirement that a portion 
     of the reinstatement be retained until the 4th month of the 
     veteran's employment by also permitting payment 4 months 
     after completion of the 18th month of training, whichever is 
     earlier; d) allow a trainee to switch into an alternative 
     approved training program with the employer; and e) permit an 
     eligible veteran to begin an approved training program on the 
     date that the notice of approval is transmitted.
       Senate bill: Section 2 of S. 2094 is substantively 
     identical to the House provision, except that: a) The amount 
     of payment an employer may receive would be measured in the 
     number of hours equivalent to 18 months, rather than in 
     months; b) the provision for retaining a portion of the 
     reimbursement until the fourth month of employment would not 
     be changed; c) and the limit on assistance paid to employers 
     would include amounts received but not amounts due.
       Compromise agreement: Section 610 follows the House bill 
     except that it includes the Senate provision which measures 
     the amount of payment an employer may receive in the number 
     of hours equivalent to 18 months.


                     title vii--employment programs

                 Job counseling, training and placement

   Deputy Assistant Secretary of Labor for Veterans' Employment and 
                                Training

       Current law: There is no provision in law for a Deputy 
     Assistant Secretary for Veteran's Employment and Training.
       House bill: Section 2(a) of H.R. 4776 provides that there 
     shall be a Deputy Assistant Secretary of Labor for Veterans' 
     Employment and Training who shall perform such duties as the 
     Assistant Secretary of Labor for Veterans' Employment and 
     Training prescribes, that the position shall be a career 
     position, and that the Deputy Assistant Secretary shall be a 
     veteran.
       Senate bill: No comparable provision.
       Compromise agreement: Section 701(a) follows the House 
     provision, except that the Deputy Assistant Secretary for 
     Veterans' Employment and Training shall not be a career 
     position.

                  DVOP specialists' compensation rates

       Current law: Section 4103A(a)(1) of title 38 provides that 
     compensation for disabled veterans' outreach program (DVOP) 
     specialists shall be set at a rate not less than the rate 
     prescribed for an entry level professional in the State 
     Government of the State in which the DVOP is employed.
       House bill: Section 2(b) of H.R. 4776 would require 
     compensation for DVOP's to be set at rates comparable to 
     those paid other professionals in the State Government.
       Senate bill: No comparable provision.
       Compromise agreement: Section 701(b) follows the House 
     provision with an addition providing that compensation shall 
     be set at rates comparable to those paid other professionals 
     performing essentially similar duties.

                       Special unemployment study

       Current law: Section 4110A requires the Secretary, through 
     the Bureau of Labor Statistics, to conduct a biennial study 
     of unemployment among special disabled veterans and veterans 
     who served in the Vietnam theater of operations during the 
     Vietnam era.
       House bill: Section 2(c) of H.R. 4776 expands the scope of 
     the study to include veterans who served after the Vietnam 
     era and veterans discharged or released from active duty 
     within the 4 years prior to the study, and requires that 
     information regarding women veterans shall be complied for 
     each category.
       Senate bill: No comparable provision.
       Compromise agreement: Section 701(c) provides that the 
     scope of the study shall be expanded to include veterans of 
     the Vietnam era who served outside of the theater of 
     operations, veterans who served after the Vietnam era, and 
     veterans discharged or released from active duty within the 4 
     years prior to the study. It requires that, for each of the 
     classifications of veterans, there shall be a category for 
     women veterans.
       The Committees recognize that the Bureau of Labor 
     Statistics uses a survey methodology that produces a small 
     sample size for women veterans.

                  Employment and training of veterans

                           Federal contracts

       Current law: Section 4212(a) of title 38 requires, among 
     other things, that the President promulgate regulations which 
     require Federal contractors to list all ``suitable'' job 
     openings with the local employment service office.
       House bill: Section 3(a)(1)(C) of H.R. 4776 would strike 
     the word ``suitable'' from section 4212(a).
       Senate bill: No comparable provision.
       Compromise agreement: Section 702(a) would amend section 
     4212(a) to require Federal contractors to immediately list 
     all open positions except executive and top management 
     positions, those positions that will be filled from within 
     the contractor's organization, and positions lasting three 
     days or less.
       It is the Committee's intent that Federal contractors may 
     not exclude from the listings positions at the middle 
     management and supervisory level.

  Eligibility requirements for veterans under Federal employment and 
                           training programs

       Current law: Section 4213 of title 38 excludes certain pay 
     and other amounts received by veterans and eligible persons 
     when determining the needs or qualifications of participants 
     in employment or training programs financed in whole or in 
     part with Federal funds.
       House bill: Section 3(b) of H.R. 4776 would add benefits 
     received under chapter 30 of title 38 and chapter 106 of 
     title 10 to the amounts disregarded pursuant to section 4213, 
     and would delete reference to chapter 34.
       Senate bill: No comparable provision.
       Compromise agreement: Section 702(b) follows the House 
     bill, and, in addition, would delete the words ``the needs or 
     qualifications of participants in'' in section 4213, and 
     would insert, in lieu thereof, the words ``eligibility 
     under.''


              title viii--cemeteries and memorial affairs

Eligibility for burial in national cemeteries of spouses who predecease 
                                veterans

       Current law: Section 2402 of title 38 specifies who is 
     eligible to be buried in an open national cemetery. The 
     Veterans' Benefits Improvement and Health Care Authorization 
     Act of 1986, Public Law 99-576, made a technical correction 
     in section 5 in order to make the section gender neutral. 
     However, the change unintentionally deleted the statutory 
     eligibility for burial in a national cemetery for a veteran's 
     spouse who predeceases the veteran.
       House bill: No comparable provision.
       Senate bill: Section 403 of S. 2325 would restore the 
     statutory eligibility for burial in national cemeteries of 
     spouses who predecease veterans eligible for such burial.
       Compromise agreement: Section 801 follows the Senate bill.

       Restoration of burial eligibility for unremarried spouses

       Current law: Section 2402 of title 38 permits the surviving 
     spouse of a veteran to be buried in any open national 
     cemetery. The term ``surviving spouse'' is currently defined 
     in section 101(3) of title 38 as one who is the spouse of a 
     veteran at the time of the veteran's death and who has not 
     remarried. Section 8004 of the Omnibus Reconciliation Act of 
     1990, Public Law 101-508, precluded eligibility for certain 
     benefits under title 38, including eligibility for burial in 
     national cemeteries, for remarried surviving spouses whose 
     subsequent marriages were ended by death or divorce.
       House bill: Section 4 of H.R. 3456 would reinstate 
     eligibility for burial in national cemeteries of surviving 
     spouses whose subsequent marriage ended by death or divorce.
       Senate bill: No comparable provision.
       Compromise agreement: Section 802 follows the House bill.

 Extension of authorization of appropriations for State Cemetery Grant 
                                Program

       Current law: Section 2408(a)(2) of title 38 authorizes 
     appropriations of such funds as may be necessary for fiscal 
     year 1985, and for each of the 9 succeeding fiscal years, for 
     the purpose of making grants to any State in establishing, 
     expanding, or improving veterans' cemeteries owned by such 
     State.
       House bill: Section 7 of H.R. 949 would extend the 
     authorization of appropriations for the State Cemetery Grants 
     Program from September 30, 1994, to September 30, 1999.
       Senate bill: No comparable provision.
       Compromise agreement: Section 803 follows the House bill.

    Authority to use flat grave markers at the Willamette National 
                            Cemetery, Oregon

       Current law: Section 2404(c)(2) of title 38 requires that 
     all grave markers in national cemeteries be upright for 
     interments on or after January 1, 1987, except that flat 
     grave markers may be used (a) in any section of a cemetery 
     that used flat grave markers prior to October 28, 1986, (b) 
     in any cemetery located on the grounds of or adjacent to a VA 
     health care facility, or (c) at those grave sites where 
     cremated remains are interred.
       House bill: No comparable provision.
       Senate bill: Section 404 of S. 2325 would authorize the use 
     of flat grave markers at the Willamette National Cemetery in 
     Oregon, notwithstanding section 2404(c)(2) of title 38.
       Compromise agreement: Section 804 follows the Senate bill.


                       title ix--housing programs

                              Eligibility

       Current law: Subsections (b)(2) and (b)(5)(A) of section 
     3701 of title 38 expand the definition of the term 
     ``veteran'' for purposes of chapter 37.
       House bill: Section 1 of H.R. 4724 would add to the 
     definition of veteran, persons discharged or released from 
     the Selected Reserves before completing 6 years of service 
     because of a service-connected disability, and would extend 
     eligibility to surviving spouses of reservists who died on 
     active duty or due to a service-connected disability.
       Senate bill: No comparable provision.
       Compromise agreement: Section 901 follows the House bill.

             Revision in computation of aggregate guaranty

       Current law: Section 3702 of title 38 provides for the 
     calculation of the loan guaranty entitlement. Subsection 
     (b)(1)(A) of section 3702 requires that any home acquired 
     with a VA-guaranteed loan must have been disposed of or 
     destroyed as one precondition to the restoration of 
     entitlement.
       House bill: No comparable provision.
       Senate bill: Section 2 of S. 1626 would eliminate the 
     precondition to restoration of loan guaranty entitlement 
     provided for in subsection 3702(b)(1)(A).
       Compromise agreement: Section 902 follows the Senate bill, 
     but provides that the Secretary may waive the precondition to 
     restoration of loan guaranty entitlement contained in 
     subsection 3702(b)(1)(A) once for each veteran.

            Public and community water and sewerage systems

       Current law: Section 3704(e) of title 38 prohibits VA from 
     guaranteeing a loan to purchase or construct a home not 
     served by public water and sewerage systems where such 
     service is certified as economically feasible.
       House bill: Section 4 of H.R. 4724 would eliminate the 
     prohibition contained in section 3704(e).
       Senate bill: No comparable provision.
       Compromise agreement: Section 903 follows the House bill.

   Authority to guarantee home refinance loans for energy efficiency 
                              improvements

       Current law: Section 3710 of title 38 identifies the types 
     of loans that may be guaranteed under the VA home loan 
     program, and establishes certain conditions and restrictions 
     with respect to such loans.
       House bill: Section 3(a) of H.R. 4724 would allow for the 
     costs of energy efficiency improvements to be added to the 
     loan balance in connection with a loan refinanced for the 
     purpose of reducing the interest rate.
       Senate bill: Section 3 of S. 1626 would allow for the costs 
     of energy efficiency improvements to be added to the balance 
     of a loan being refinanced, and would provide an exception 
     for such purposes from the maximum loan amount as provided in 
     section 3710(e)(1)(C).
       Compromise agreement: Section 904 follows both bills, 
     except that it includes the exception to the maximum loan 
     amount in a refinance as provided in the Senate bill.

Authority to guarantee loans to refinance adjustable rate mortgages to 
                          fixed rate mortgages

       Current law: Subsection 3701(e)(1)(A) of title 38 requires 
     that the interest rate of a loan which is guaranteed in order 
     to refinance an existing loan must be lower than the rate of 
     the loan which is being refinanced.
       House bill: Section 3(b) of H.R. 4724 would authorize the 
     refinancing of adjustable rate mortgage loans to fixed rate 
     mortgage loans at a higher interest rate.
       Senate bill: No comparable provision.
       Compromise agreement: Section 905 follows the House bill.

                   Manufactured home loan inspections

       Current law: Section 3712(h)(2)(a) of title 38 requires the 
     Secretary to make certain inspections with respect to the 
     financing of loans for the purchase of manufactured housing.
       House bill: Section 4 of H.R. 4724 would eliminate VA 
     inspection requirements under section 3712(h)(2)(A), and 
     would provide that manufactured housing that is certified to 
     conform to standards under section 616 of the National 
     Manufactured Housing Construction and Safety Standards Act of 
     1974 shall be deemed in compliance with requirements of 
     subsection 3712(h)(1).
       Senate bill: No comparable provision.
       Compromise agreement: Section 906 follows the House bill.

                         Procedures on default

       Current law: Section 3732(c) of title 38 permits the 
     Secretary to acquire property from a loan holder who has 
     purchased the property at foreclosure for a price not 
     exceeding the lesser of the net value of the property or the 
     total indebtedness.
       House bill: Section 5 of H.R. 4724 would permit VA to 
     acquire property from the lender at the price provided for 
     under current law, despite the fact that the lender's bid at 
     the foreclosure sale might have exceeded that price.
       Senate bill: No comparable provision.
       Compromise agreement: Section 907 follows the House bill.

                Minimum active-duty service requirement

       Current law: Section 5303A establishes, with certain 
     exceptions, a minimum of 24 months of active duty service for 
     eligibility for benefits under title 38.
       House bill: Section 6 of H.R. 4724 would add an exception 
     from the 2-year minimum service requirement with respect to 
     eligibility under chapter 37 of title 38 for service members 
     discharged because of a reduction in force.
       Senate bill: No comparable provision
       Compromise agreement: Section 908 follows the House bill.


                  title x--homeless veterans programs

 Reports on activities of the Department of Veterans Affairs to assist 
                           homeless veterans

       Current law: Section 10 of the Homeless Veterans 
     Comprehensive Service Programs Act of 1992, Public Law 102-
     590, requires VA to submit, no later than May 1 of each year 
     1994, 1995, and 1996, reports to the Senate and House 
     Committees on Veterans' Affairs on the implementation of that 
     act, including the numbers of veterans served, the services 
     provided, and an analysis of the clinical value and cost 
     effectiveness of the programs authorized under that act. 
     However, there is no other provision in current law that 
     requires VA to submit a report to Congress on all of the 
     Department's activities to assist homeless veterans.
       House bill: No comparable provision
       Senate bill: Section 105 of S. 2325 would require VA to 
     submit an annual report by April 15 on its activities to 
     assist homeless veterans, including information on the 
     numbers of homeless veterans served and the costs to the 
     Department of its activities, and to report biannually on the 
     effectiveness of these activities.
       Compromise agreement: Section 1001 follows the Senate bill 
     and repeals the reporting requirement under section 10 of 
     Public Law 102-590.
       It is the Committees' intention that the information that 
     VA is required to furnish to the Committees under section 10 
     of Public Law 102-590 would be contained, along with other 
     matters, in the reports required under this section of the 
     compromise agreement.

   Report on assessment and plans for response to needs of homeless 
                                veterans

       Current law: Section 107 of the Veterans's Medical Programs 
     Amendments of 1992, Public Law 102-405, enacted on October 9, 
     1992, requires the Secretary to assess programs developed by 
     VA facilities which have been designed to assist homeless 
     veterans. In carrying out this assessment, the Secretary is 
     directed to require the director of each VA medical center 
     and regional office (a) to assess the needs of homeless 
     veterans within the area served by the facility, including 
     veterans' needs for health care, education and training, 
     employment, shelter, counseling, and outreach services; and 
     (b) to develop, along with other local officials and 
     providers of services to the homeless, a list of all public 
     and private programs to assist homeless persons in the areas 
     served by the VA facilities. Public Law 102-405 does not set 
     a date for submission of this report.
       House bill: No comparable provision.
       Senate bill: Section 106 of S. 2325 would require VA to 
     submit the report described above to the Senate and House 
     Committees on Veterans' Affairs by December 31, 1994, and 
     update this report annually thereafter, through December 31, 
     1997.
       Compromise agreement: Section 1002 follows the Senate bill.

 Increase in number of demonstration programs under Homeless Veterans 
               Comprehensive Service Programs Act of 1992

       Current law: Section 2 of the Homeless Veterans 
     Comprehensive Service Programs Act of 1992, Public Law 102-
     590, requires VA to establish no more than four demonstration 
     programs to be centers for the provision of comprehensive 
     services to homeless veterans.
       House bill: No comparable provision.
       Senate bill: Section 108(a) of S. 2325 would raise the 
     limit on the number of comprehensive homeless centers that VA 
     may establish from 4 to 12.
       Compromise agreement: Section 1003 follows the Senate bill, 
     except that the limit would be raised to eight centers.

   Removal of funding requirement of Homeless Veterans Comprehensive 
                      Service Programs Act of 1992

       Current law: Section 12 of the Homeless Veterans 
     Comprehensive Service Programs Act of 1992, Public Law 102-
     590, specifies that no funds may be used to carry out certain 
     provisions in that law unless expressly provided for in an 
     appropriations statute.
       House bill: Section 8 of H.R. 949 would delete this 
     requirement.
       Senate bill: Section 108(b) of S. 2325 is identical to the 
     House bill.
       Compromise agreement: Section 1004 contains this provision.

                           Sense of Congress

       House resolution: H. Res. 503 would express the sense of 
     the House of Representatives that Congress, in providing 
     funds for any fiscal year for programs to assist homeless 
     individuals, should ensure that these funds are fairly 
     apportioned for homeless veterans to help return homeless 
     veterans to self-sufficient and productive lives.
       Senate bill: No comparable provision.
       Compromise agreement: Section 1005 is derived from the 
     House resolution and would express that it is the sense of 
     the Congress that (a) of the funds appropriated for any 
     fiscal year for programs to assist homeless individuals, a 
     share more closely approximately the proportion of the 
     population of homeless individuals who are veterans should be 
     appropriated to VA for VA homeless programs; (b) of the 
     Federal grants made available to assist community 
     organizations that assist homeless individuals, a share of 
     such grants more closely approximately the proportion of the 
     population of homeless individuals who are veterans should be 
     provided to community organizations that provide assistance 
     primarily to homeless veterans; and (c) the Secretary should 
     encourage Federal agencies that assist homeless individuals, 
     including homeless veterans, to be award of and make 
     appropriate referrals to VA for benefits, such as health 
     care, substance abuse treatment, counseling, and income 
     assistance.


    title xi--reductions in department of veterans affairs personnel

    Requirement for minimum number of full-time equivalent positions

       Current law: There is no provision in current law relating 
     to the specific number of personnel in VA.
       Section 5(b) of the Federal Workforce Restructuring Act of 
     1994, Public Law 103-226, requires the President, through the 
     Director of the Office of Management and Budget, to ensure 
     that the total number of full-time equivalent employees 
     (FTEE) in all Federal agencies not exceed specified levels 
     set for each of fiscal years 1994 through 1999. The Office of 
     Management and Budget has the authority to determine now and 
     from where these cuts will taken.
       House bill: Section 2 of H.R. 4013 would (a) prohibit, 
     during fiscal years 1995 to 1999, any reduction in the number 
     of FTEE in the Veterans Health Administration (VHA) other 
     than as specifically required by a law directing a reduction 
     in personnel from VHA or by the availability of funds; and 
     (b) require that the personnel of VHA be managed on the basis 
     of the needs of eligible veterans and the availability of 
     funds. Section 3 of H.R. 4013 would require the Secretary to 
     submit, not later than January 15, 1995, a report to the 
     Senate and House Committees on Veterans' Affairs on 
     streamlining activities in VHA.
       Senate bill: Section 7 of S. 2330 would limit the number of 
     FTEE cuts in VA over the next 5 years, and impose certain 
     requirements relating to VA personnel.
       Specifically, section 7(b) would set the number of FTEE in 
     VA between the date of enactment of this measure and 
     September 30, 1999, at 224,377 (which is 10,051 FTEE lower 
     than VA's personnel level during fiscal year 1993).
       Section 7(c) would require that, in determining the number 
     of FTEE in VA during a fiscal year for purposes of achieving 
     Federal workforce reductions, as required by section 5(b) of 
     Public Law 103-226, only those VA employees whose salaries 
     and benefits are paid with appropriated funds may be counted 
     as VA FTEE. In fiscal year 1993, the administration counted 
     5,375 positions in VA (including 3,065 in the Veterans 
     Canteen Service, 2,066 in the Medical Care Cost Recovery 
     program, and 244 in the Medical Center Research 
     Organizations) that were paid with funds other than federally 
     appropriated funds.
       Section 7(d) would allow the level of VA FTEE to fall below 
     224,377 if cuts are necessary due to a reduction in funds 
     available to the Department, or if a law enacted after the 
     enactment of this measure specifically requires additional 
     cuts.
       Section 7(e) would require the Secretary to submit an 
     annual report, through the year 2000, the Senate and House 
     Committees on Veterans' Affairs that describes the numbers 
     and positions of all VA employees cut and the rationale 
     behind such cuts. This information would be required to be 
     contained in the annual President's budget submitted to 
     Congress pursuant to section 1105 of title 31, United States 
     Code.
       Compromise agreement: Section 1102 follows the Senate bill.
       The Committees believe that, for purposes of determining an 
     accurate estimate of the number of Federal employees in VA, 
     those employees whose salaries and benefits are not paid with 
     taxpayers' money should not be counted. The Committees note 
     VA's intention to pay 2,218 medical residents in VA medical 
     centers on a contract basis with the residents' medical 
     schools.
       The Committees strongly discourage VA from achieving the 
     workforce reduction required under this section by cutting 
     staff in an arbitrary, across-the-board manner. Such 
     arbitrary cuts cause indefensible staffing imbalances among 
     VA programs and facilities, and hurt VA's ability to provide 
     services to veterans. Although this section does not direct 
     the Secretary how to implement personnel reductions, section 
     7(e) would require VA to share with the Committees the 
     numbers and positions of any personnel cuts, and to justify 
     such cuts. The Committees also believe that section 1103 of 
     the compromise agreement would give VA a mechanism to avoid 
     implementing across-the-board cuts.

         Enhanced authority to contract for necessary services

       Current law: Subsection 8110(c) of title 38 precludes VA 
     from entering into contracts under which VA direct patient 
     care or activities incident to direct patient care would be 
     converted to activities performed by non-VA providers. For 
     services other than those services, this section requires (a) 
     that VA receive at least two bids from financially autonomous 
     bidders; (b) that the cost to the Government of such contract 
     service over the first 5 years to be 15 percent lower than 
     the cost of Federal employees performing such services; and 
     (c) that the quality and quantity of health care provided to 
     veterans at the facility where such contract work is to be 
     performed would be maintained or enhanced. Before carrying 
     out a study in connection with a decision to consider 
     entering such a contract, VA must submit notice to the 
     appropriate Committees of the Congress of its intention to 
     carry out such a study.

       House bill: No comparable provision.
       Senate bill: Section 8 of S. 2330 would (a) waive, during 
     fiscal years 1995 to 1999, the limitations provided for under 
     section 8110(c) of title 38; (b) require the Secretary to 
     ensure that, in any contract for services that had been 
     provided by VA employees, the contractor give priority to 
     former VA employees who were displaced by the award of the 
     contract; and (c) require the Secretary to provide to such 
     former VA employees all possible assistance in obtaining 
     other Federal employment or entrance into job training 
     programs.
       Compromise agreement: Section 1103 follows the Senate bill. 
     The Committees note that providing VA enhanced authority to 
     contract for services will assist VA in achieving its 
     workforce reduction.

                                 Study

       Current law: No provision in current law requires a study 
     of the feasibility and advisability of alternative 
     organizational structures, such as the establishment of a 
     quasi-Government corporation, to provide health care to 
     veterans.
       House bill: No comparable provision.
       Senate bill: Section 9 of S. 2330 would (a) require the 
     Secretary to contract with an appropriate non-Federal entity 
     to study and report to Congress on the feasibility and 
     advisability of alternative organizational structures, such 
     as the establishment of a quasi-Government corporation, to 
     provide health care services to veterans; and (b) authorize 
     appropriations of $1 million for this purpose.
       Compromise agreement: Section 1104 follows the Senate bill.
       The Committees intend by this provision to draw on the 
     expertise of an independent management consultant to study 
     and assess the management structures and organization of the 
     VA health care delivery system with particular reference to 
     the likelihood that VA will need to compete with private 
     health care providers. The Committees anticipate receiving a 
     detailed evaluation of VA from a business perspective and 
     recommendations on how VA's health care system might be 
     improved and altered, if appropriate, to provide the highest 
     quality medical services to our Nation's veterans in the most 
     effective and efficient manner possible. It is the 
     Committees' view that certain aspects of VA's health delivery 
     system likely could operate more like nongovernment 
     businesses.
       Any analysis of VA's health care system must be made in the 
     context of VA's overall mission to help veterans, especially 
     those with service-connected disabilities. In this context, 
     the Committees note that there are many aspects of VA that 
     should and must remain federally funded and centrally 
     administered, particularly programs to assist veterans who 
     suffer from posttraumatic stress disorder, spinal cord 
     dysfunction, or who need blind rehabilitation. VA provides a 
     public good--a necessity which may or may not be adaptable to 
     a competitive business environment. This study would attempt 
     to find the most effective and efficient health delivery 
     mechanism given this reality.

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