[Congressional Record Volume 142, Number 137 (Saturday, September 28, 1996)]
[Senate]
[Pages S11774-S11794]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              VETERANS' BENEFITS IMPROVEMENTS ACT OF 1996

  Mr. NICKLES. Mr. President, I ask unanimous consent that the Senate 
now proceed to the consideration of Calendar No. 625, S. 1711.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       A bill (S.1711) to establish a commission to evaluate the 
     programs of the Federal Government and assist members of the 
     Armed Forces and veterans in readjusting to civilian life, 
     and for other purposes.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the 
bill, which had been reported from the Committee on Veterans' Affairs, 
with an amendment to strike all after the enacting clause and inserting 
in lieu thereof the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Veterans' 
     Benefits Improvements Act of 1996''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

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

              TITLE I--COMMISSION ON TRANSITION ASSISTANCE

Sec. 101. Establishment of commission.
Sec. 102. Duties of commission.
Sec. 103. Powers of commission.
Sec. 104. Miscellaneous administrative provisions.
Sec. 105. Commission personnel matters.
Sec. 106. Termination of commission.
Sec. 107. Definitions.
Sec. 108. Funding.

                   TITLE II--LIFE INSURANCE PROGRAMS

Sec. 201. Short title.
Sec. 202. Removal of gender references with respect to Servicemen's 
              Group Life Insurance.
Sec. 203. Conversion of retired reservist Servicemembers' Group Life 
              Insurance to Veterans' Group Life Insurance and extension 
              of Veterans' Group Life Insurance to members of the Ready 
              Reserves.
Sec. 204. Conversion of SGLI and VGLI to commercial life insurance.
Sec. 205. Technical amendment.

                     TITLE III--BENEFITS PROVISIONS

Sec. 301. Expansion of period of Vietnam era for certain veterans.
Sec. 302. Revision of authority relating to centers for minority 
              veterans and women veterans.
Sec. 303. Outer burial receptacles.
Sec. 304. Clarification of eligibility of minors for burial in national 
              cemeteries.

[[Page S11775]]

Sec. 305. Extension of authority to treat alternative teacher 
              certification programs as educational institutions for 
              certain educational assistance purposes.
Sec. 306. Direct loans to refinance loans under Native American Veteran 
              Housing Loan Pilot Program.
Sec. 307. Clothing allowance for incarcerated veterans.
Sec. 308. Appointment of veterans service organizations as claimants' 
              representatives.
Sec. 309. Provision of copies of Board of Veterans' Appeals decisions.
Sec. 310. Extension of certain authorities for services for homeless 
              veterans.

    TITLE IV--EMPLOYMENT AND REEMPLOYMENT RIGHTS OF MEMBERS OF THE 
                           UNIFORMED SERVICES

Sec. 401. Purposes.
Sec. 402. Definitions.
Sec. 403. Discrimination against persons who serve in the uniformed 
              services and acts of reprisal prohibited.
Sec. 404. Reemployment rights of persons who serve in the uniformed 
              services.
Sec. 405. Reemployment positions.
Sec. 406. Leave.
Sec. 407. Health plans.
Sec. 408. Employee pension benefit plans.
Sec. 409. Enforcement of employment or reemployment rights.
Sec. 410. Enforcement of rights with respect to a State or private 
              employer.
Sec. 411. Enforcement of rights with respect to Federal executive 
              agencies.
Sec. 412. Enforcement of rights with respect to certain Federal 
              agencies.
Sec. 413. Conduct of investigation; subpoenas.
Sec. 414. Transition rules and effective dates.
Sec. 415. Effective dates.

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

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

     SEC. 101. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the Commission on Service Members and Veterans 
     Transition Assistance (hereafter in this title referred to as 
     the ``Commission'').
       (b) Membership.--(1) The Commission shall be composed of 12 
     members appointed from among private United States citizens 
     with appropriate and diverse experiences, expertise, and 
     historical perspectives on veterans, military, 
     organizational, and management matters, of whom--
       (A) four shall be appointed by the Chairman of the 
     Committee on Veterans' Affairs of the Senate, in consultation 
     with the Ranking Member of that committee;
       (B) four shall be appointed by the Chairman of the 
     Committee on Veterans' Affairs of the House of 
     Representatives, in consultation with the Ranking Member of 
     that committee;
       (C) two shall be appointed by the Chairman of the Committee 
     on Armed Services of the Senate, in consultation with the 
     Ranking Member of that committee; and
       (D) two shall be appointed by the Chairman of the Committee 
     on National Security of the House of Representatives, in 
     consultation with the Ranking Member of that committee.
       (2)(A) One member of the Commission appointed under each of 
     subparagraphs (A) and (B) of paragraph (1) shall be a 
     representative of a veterans service organization.
       (B) To the maximum extent practicable, the individuals 
     appointed as members of the Commission shall be veterans.
       (C) Not more than seven of the members of the Commission 
     may be members of the same political party.
       (3) The appointments of members of the Commission shall, to 
     the maximum extent practicable, be made after consultation 
     with representatives of veterans service organizations.
       (4) The appointments of the members of the Commission shall 
     be made not later than 45 days after the date of enactment of 
     this Act.
       (c) Period of Appointment; Vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner as the original appointment.
       (d) Initial Meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold its first meeting.
       (e) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number may hold 
     hearings.
       (f) Chairman and Vice Chairman.--The Commission shall 
     select a Chairman and Vice Chairman from among its members.
       (g) Meetings.--The Commission shall meet at the call of the 
     Chairman of the Commission.
       (h) Panels.--The Commission may establish panels composed 
     of less than the full membership of the Commission for the 
     purpose of carrying out the Commission's duties. The actions 
     of such panels shall be subject to the review and control of 
     the Commission. Any findings and determinations made by such 
     a panel shall not be considered the findings and 
     determinations of the Commission unless approved by the 
     Commission.
       (i) Authority of Individuals To Act for Commission.--Any 
     member or agent of the Commission may, if authorized by the 
     Commission, take any action which the Commission is 
     authorized to take under this title.

     SEC. 102. DUTIES OF COMMISSION.

       (a) In General.--The Commission shall--
       (1) review the efficacy and appropriateness of veterans 
     transition and assistance programs in providing assistance to 
     members of the Armed Forces in making the transition and 
     adjustment to civilian life upon their separation from the 
     Armed Forces and in providing assistance to veterans in 
     making the transition to, and adjusting to, civilian life;
       (2) review the allocation under law of responsibility for 
     the administration of veterans transition and assistance 
     programs among the various departments and agencies of the 
     Federal Government and determine the feasibility and 
     desirability of consolidating such administration in one such 
     department or agency;
       (3) evaluate proposals for improving such programs, 
     including proposals to consolidate, streamline, and enhance 
     the provision of such assistance and proposals for 
     alternative means of providing such assistance; and
       (4) make recommendations to Congress regarding means of 
     ensuring the continuing utility of such programs and 
     assistance and of otherwise improving such programs and the 
     provision of such assistance.
       (b) Review of Programs To Assist Members of the Armed 
     Forces at Separation.--(1) While carrying out the general 
     duties specified in subsection (a), the members of the 
     Commission appointed under subparagraphs (C) and (D) of 
     section 101(b)(1) shall review primarily the programs 
     intended to assist members of the Armed Forces at the time of 
     their separation from service in the Armed Forces, including 
     programs designed to assist families of such members in 
     preparing for the transition of such members from military 
     life to civilian life and to facilitate that transition.
       (2) In carrying out the review, such members of the 
     Commission shall determine--
       (A) the adequacy of the programs referred to in paragraph 
     (1) for their purposes;
       (B) the adequacy of the support of the Armed Forces for 
     such programs;
       (C) the effect, if any, of the existence of such programs 
     on military readiness;
       (D) the extent to which such programs provide members of 
     the Armed Forces with job-search skills;
       (E) the extent to which such programs prepare such members 
     for employment in the private sector and in the public 
     sector;
       (F) the effectiveness of such programs in assisting such 
     members in finding employment in the public sector upon their 
     separation from service; and
       (G) the ways in which such programs could be improved in 
     order to assist such members in securing meaningful 
     employment in the private sector upon their separation from 
     service.
       (c) Review of Programs To Assist Veterans.--(1) While 
     carrying out the general duties specified in subsection (a), 
     the members of the Commission appointed under subparagraphs 
     (A) and (B) of section 101(b)(1) shall--
       (A) review the adequacy of programs intended to assist 
     veterans (including disabled veterans, homeless veterans, and 
     economically disadvantaged veterans) in adjusting to civilian 
     life, including the programs referred to in paragraph (2); 
     and
       (B) consider--
       (i) whether the scope, focus, or content of such programs 
     should be changed as a result of the conversion of the Armed 
     Forces to an all-volunteer force; and
       (ii) whether responsibility for administration of such 
     programs should be transferred to a department or agency 
     other than the Department of Veterans Affairs as a result of 
     such conversion and, if so, the department or agency to which 
     the administration should be transferred.
       (2) The programs referred to in paragraph (1)(A) are the 
     following:
       (A) Educational assistance programs.
       (B) Job counseling, job training, and job placement 
     services programs.
       (C) Rehabilitation and training programs.
       (D) Housing loan programs.
       (E) Small business loan and small business assistance 
     programs.
       (F) Employment and employment training programs for 
     employment in the public sector and the private sector, 
     including employer training programs and union apprenticeship 
     programs.
       (G) Federal Government personnel policies (including 
     veterans' preference policies) and the enforcement of such 
     policies.
       (H) Programs that prepare the families of members of the 
     Armed Forces for their transition from military life to 
     civilian life and facilitate that transition.
       (d) Reports.--(1) Not later than 90 days after the date on 
     which all members of the Commission have been appointed, the 
     Commission shall submit to the Committees on Veterans' 
     Affairs and Armed Services of the Senate and the Committees 
     on Veterans' Affairs and National Security of the House of 
     Representatives a report setting forth a plan for the work of 
     the Commission. The Commission shall develop the plan in 
     consultation with the Secretary of Defense, the Secretary of 
     Veterans Affairs, and the heads of other appropriate 
     departments and agencies of the Federal Government.
       (2)(A) Not later than one year after the date of the first 
     meeting of the Commission, the Commission shall submit to the 
     committees referred to in paragraph (1), and to the Secretary 
     of Defense, the Secretary of Veterans Affairs, the Secretary 
     of Labor, and the Secretary of Education, a report setting 
     forth the activities, findings, and recommendations of the 
     Commission, including any recommendations for legislative 
     action and administrative action as the Commission considers 
     appropriate.
       (B) Not later than 90 days after receiving the report 
     referred to in subparagraph (A), the Secretary of Defense and 
     the Secretary of Veterans Affairs shall jointly transmit the 
     report to Congress, together with the Secretaries' comments 
     on the report.

[[Page S11776]]

     SEC. 103. POWERS OF COMMISSION.

       (a) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out the purposes of this title.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from the Department of Defense, the 
     Department of Veterans Affairs, and any other department or 
     agency of the Federal Government such information as the 
     Commission considers necessary to carry out its duties under 
     this title. Upon request of the Chairman of the Commission, 
     the head of such department or agency shall furnish such 
     information expeditiously to the Commission.

     SEC. 104. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

       (a) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (b) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.
       (c) Miscellaneous Administrative Support.--The Secretary of 
     Defense and the Secretary of Veterans Affairs shall, upon the 
     request of the Chairman of the Commission, furnish the 
     Commission, on a reimbursable basis, any administrative and 
     support services as the Commission may require.

     SEC. 105. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Commission 
     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in performing the duties of the 
     Commission.
       (b) Travel and Travel Expenses.--(1) Members and personnel 
     of the Commission may travel on military aircraft, military 
     vehicles, or other military conveyances when travel is 
     necessary in the performance of a duty of the Commission 
     except when the cost of commercial transportation is less 
     expensive.
       (2) The members of the Commission shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     their homes or regular places of business in the performance 
     of services for the Commission.
       (c) Staff.--(1) The Chairman of the Commission may, without 
     regard to civil service laws and regulations, appoint and 
     terminate an executive director and such other additional 
     personnel as may be necessary to enable the Commission to 
     perform its duties. In appointing an individual as executive 
     director, the Chairman shall, to the maximum extent 
     practicable, attempt to appoint an individual who is a 
     veteran. The employment of an executive director shall be 
     subject to confirmation by the Commission.
       (2) The Chairman of the Commission may fix the compensation 
     of the executive director and other personnel without regard 
     to the provisions of chapter 51 and subchapter III of chapter 
     53 of title 5, United States Code, relating to classification 
     of positions and General Schedule pay rates, except that the 
     rate of pay for the executive director and other personnel 
     may not exceed the rate payable for level V of the Executive 
     Schedule under section 5316 of such title.
       (d) Detail of Government Employees.--Upon request of the 
     Chairman of the Commission, the head of any department or 
     agency of the Federal Government may detail, on a 
     nonreimbursable basis, any personnel of the department or 
     agency to the Commission to assist the Commission in carrying 
     out its duties.
       (e) Procurement of Temporary and Intermittent Services.--
     The Chairman of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level IV of the Executive Schedule under 
     section 5316 of such title.

     SEC. 106. TERMINATION OF COMMISSION.

       The Commission shall terminate 90 days after the date on 
     which the Commission submits its report under section 
     102(d)(2).

     SEC. 107. DEFINITIONS.

       For the purposes of this title--
       (1) The term ``veterans transition and assistance program'' 
     means any program of the Federal Government, including the 
     Department of Defense, the Department of Veterans Affairs, 
     the Department of Labor, and the Department of Education, the 
     purpose of which is--
       (A) to assist, by rehabilitation or other means, members of 
     the Armed Forces in readjusting or otherwise making the 
     transition to civilian life upon their separation from 
     service in the Armed Forces; or
       (B) to assist veterans in making the transition to civilian 
     life.
       (2) The term ``Armed Forces'' has the meaning given such 
     term in section 101(10) of title 38, United States Code.
       (3) The term ``veteran'' has the meaning given such term in 
     section 101(2) of title 38, United States Code.
       (4) The term ``veterans service organization'' means any 
     organization covered by section 5902(a) of title 38, United 
     States Code.

     SEC. 108. FUNDING.

       (a) In General.--The Secretary of Defense shall, upon the 
     request of the Chairman of the Commission, make available to 
     the Commission such amounts as the Commission may require to 
     carry out its duties under this title. The Secretary shall 
     make such amounts available from amounts appropriated for the 
     Department of Defense.
       (b) Availability.--Any sums made available to the 
     Commission under subsection (a) shall remain available, 
     without fiscal year limitation, until the termination of the 
     Commission.
                   TITLE II--LIFE INSURANCE PROGRAMS

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Veterans' Insurance Reform 
     Act of 1996''.

     SEC. 202. REMOVAL OF GENDER REFERENCES WITH RESPECT TO 
                   SERVICEMEN'S GROUP LIFE INSURANCE.

       (a) In General.--The following provisions are amended by 
     striking out ``Servicemen's Group Life Insurance'' each place 
     it appears and inserting in lieu thereof ``Servicemembers' 
     Group Life Insurance'':
       (1) Subsections (a), (c), and (e) of section 1967.
       (2) Subsections (a) through (d) of section 1969.
       (3) Subsections (a), (f), and (g) of section 1970.
       (4) Section 1971(b).
       (5) Section 1973.
       (6) The text of section 1974(a).
       (7) Subsections (a) (other than the third and fourth 
     sentences), (d), and (g) of section 1977.
       (8) Section 3017(a)(2)(A)(i).
       (9) Section 3224(1).
       (b) Conforming and Clerical Amendments.--(1) Section 
     1315(f)(1)(F) is amended by striking out ``servicemen's group 
     life insurance'' and inserting in lieu thereof 
     ``servicemembers' group life insurance''.
       (2)(A) The heading of subchapter III of chapter 19 is 
     amended to read as follows:

       ``SUBCHAPTER III--SERVICEMEMBERS' GROUP LIFE INSURANCE''.

       (B) The item relating to such subchapter in the table of 
     sections at the beginning of such chapter is amended to read 
     as follows:

       ``Subchapter III--Servicemembers' Group Life Insurance''.

       (3)(A) The section head of section 1974 is amended to read 
     as follows:

     ``Sec. 1974. Advisory Council on Servicemembers' Group Life 
       Insurance''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 19 is amended to read as 
     follows:

``1974. Advisory Council on Servicemembers' Group Life Insurance.''.

       (d) References.--(1) Any reference to Servicemen's Group 
     Life Insurance in any Federal law, Executive order, 
     regulation, delegation of authority, or other document of the 
     Federal Government shall be deemed to refer to 
     Servicemembers' Group Life Insurance.
       (2) Any reference to the Advisory Council on Servicemen's 
     Group Life Insurance in any Federal law, Executive order, 
     regulation, delegation of authority, or other document of the 
     Federal Government shall be deemed to refer to the Advisory 
     Council on Servicemembers' Group Life Insurance.

     SEC. 203. CONVERSION OF RETIRED RESERVIST SERVICEMEMBERS' 
                   GROUP LIFE INSURANCE TO VETERANS' GROUP LIFE 
                   INSURANCE AND EXTENSION OF VETERANS' GROUP LIFE 
                   INSURANCE TO MEMBERS OF THE READY RESERVES.

       (a) Definitions.--Section 1965(5) is amended--
       (1) by adding ``and'' at the end of subparagraph (B);
       (2) by striking out subparagraphs (C) and (D); and
       (3) by redesignating subparagraph (E) as subparagraph (C).
       (b) Persons Insured.--Section 1967 is amended--
       (1) in subsection (a)--
       (A) by adding ``and'' at the end of paragraph (1);
       (B) by striking out paragraphs (3) and (4); and
       (C) in the full sentence in the matter following paragraph 
     (2), by striking out ``or the first day a member of the 
     Reserves, whether or not assigned to the Retired Reserve of a 
     uniformed service, meets the qualifications of section 
     1965(5)(C) of this title, or the first day a member of the 
     Reserves meets the qualifications of section 1965(5)(D) of 
     this title,'';
       (2) by striking out subsection (d); and
       (3) by redesignating subsection (e) as subsection (d).
       (c) Duration and Termination of Coverage.--Section 1968(a) 
     is amended--
       (1) by striking out ``subparagraph (B), (C), or (D) of 
     section 1965(5)'' in the matter preceding paragraph (1) and 
     inserting in lieu thereof ``section 1965(5)(B)'';
       (2) by striking out paragraph (4) and inserting in lieu 
     thereof the following new paragraph (4):
       ``(4) with respect to a member of the Ready Reserve of a 
     uniformed service who meets the qualifications set forth in 
     section 1965(5)(B) of this title, one hundred and twenty days 
     after separation or release from such assignment, unless on 
     the date of such separation or release the member is totally 
     disabled, under criteria established by the Secretary, in 
     which event the insurance shall cease one year after the date 
     of separation or release from such assignment, or on the date 
     the insured ceases to be totally disabled, whichever is the 
     earlier date, but in no event prior to the expiration of one 
     hundred and twenty days after separation or release from 
     such assignment.''; and
       (3) by striking out paragraphs (5) and (6).
       (d) Deductions.--Section 1969 is amended--
       (1) in subsection (a)(2), by striking out ``is assigned to 
     the Reserve (other than the Retired Reserve)'' and all that 
     follows through ``section 1965(5)(D) of this title,'';
       (2) by striking out subsection (e); and
       (3) by redesignating subsections (f) and (g) as subsections 
     (e) and (f), respectively.
       (e) Conversion of SGLI to VGLI.--The Servicemembers' Group 
     Life Insurance of any

[[Page S11777]]

     member of the Retired Reserve of a uniformed service shall be 
     converted to Veterans' Group Life Insurance effective 90 days 
     after the date of enactment of this Act.

     SEC. 204. CONVERSION OF SGLI AND VGLI TO COMMERCIAL LIFE 
                   INSURANCE.

       (a) Option To Convert SGLI.--Subsection (b) of section 1968 
     is amended to read as follows:
       ``(b)(1) Each policy purchased under this subchapter shall 
     contain a provision, in terms approved by the Secretary, 
     that, except as hereinafter provided, Servicemembers' Group 
     Life Insurance which is continued in force after expiration 
     of the period of duty or travel under section 1967(b) or 
     1968(a) of this title, effective the day after the date such 
     insurance would cease, shall, at the election of the member 
     or former member concerned--
       ``(A) be automatically converted to Veterans' Group Life 
     Insurance subject to (i) the timely payment of the initial 
     premium under terms prescribed by the Secretary, and (ii) the 
     terms and conditions set forth in section 1977 of this title; 
     or
       ``(B) be converted to an individual policy of insurance as 
     described in section 1977(e) of this title upon written 
     application for conversion made to the participating company 
     selected by the member and payment of the required premiums.
       ``(2) Automatic conversion under paragraph (1)(A) shall be 
     effective only in the case of an otherwise eligible member or 
     former member who is separated or released from a period of 
     active duty or active duty for training or inactive duty 
     training on or after the date on which the Veterans' Group 
     Life Insurance program (provided for under section 1977 of 
     this title) becomes effective.''.
       (b) Conversion of VGLI.--Section 1977 is amended--
       (1) in subsection (a), by striking out the fourth and fifth 
     sentences and inserting in lieu thereof the following 
     sentence: ``If any person insured under Veterans' Group Life 
     Insurance again becomes insured under Servicemembers' Group 
     Life Insurance but dies before terminating or converting such 
     person's Veterans' Group Life Insurance to Servicemembers' 
     Group Life Insurance, Veterans' Group Life Insurance will be 
     payable only if such person is insured for less than $200,000 
     under Servicemembers' Group Life Insurance, and then only in 
     an amount which when added to the amount of Servicemembers' 
     Group Life Insurance payable shall not exceed $200,000.''; 
     and
       (2) in subsection (e), by striking out the third sentence 
     and inserting in lieu thereof the following new sentence: ``A 
     Veterans' Group Life Insurance policy converted to an 
     individual policy under this subsection shall terminate on 
     the date before the date on which the individual policy 
     becomes effective.''.

     SEC. 205. TECHNICAL AMENDMENT.

       Section 1977(a) is amended by striking out ``and (e)'' each 
     place it appears in the first and second sentences.
                     TITLE III--BENEFITS PROVISIONS

     SEC. 301. EXPANSION OF PERIOD OF VIETNAM ERA FOR CERTAIN 
                   VETERANS.

       (a) In General.--Section 101(29) of title 38, United States 
     Code, is amended to read as follows:
       ``(29) The term `Vietnam era' means the following:
       ``(A) The period beginning on February 28, 1961, and ending 
     on May 7, 1975, in the case of a veteran who served in the 
     Republic of Vietnam during such period.
       ``(B) The period beginning on August 5, 1964, and ending on 
     May 7, 1975, in all other cases.''.
       (b) Limited Expansion for Specific Purposes.--(1)(A) 
     Paragraphs (1)(B) and (3) of section 1116(a) of such title 
     are each amended by striking out ``during the Vietnam era'' 
     and inserting in lieu thereof ``during the period beginning 
     on January 9, 1962, and ending on May 7, 1975,''.
       (B) Paragraphs (1)(A), (2)C), (2)(E), (2)(F), and (4) of 
     such section are each amended by striking out ``during the 
     Vietnam era'' and inserting in lieu thereof ``during the 
     period beginning on January 9, 1962, and ending on May 7, 
     1975''.
       (2) Section 1710(e)(1)(A) of such title is amended--
       (A) in clause (i), by striking out ``during the Vietnam 
     era,'' and inserting in lieu thereof ``during the period 
     beginning on January 9, 1962, and ending on May 7, 1975,''; 
     and
       (B) in clause (ii), by striking out ``such era'' and 
     inserting in lieu thereof ``such period''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1997. No benefit may be paid 
     or provided by reason of such amendments for any period 
     before such date.

     SEC. 302. REVISION OF AUTHORITY RELATING TO CENTERS FOR 
                   MINORITY VETERANS AND WOMEN VETERANS.

       (a) SES Status of Directors.--Sections 317(b) and 318(b) 
     are each amended by inserting ``career or'' before 
     ``noncareer''.
       (b) Additional Functions of Center for Minority Veterans.--
     Section 317(d) is amended--
       (1) by redesignating paragraph (10) as paragraph (12); and
       (2) by inserting after paragraph (9) the following new 
     paragraphs (10) and (11):
       ``(10) Advise the Secretary and other appropriate officials 
     on the effectiveness of the Department's efforts to 
     accomplish the goals of section 492B of the Public Health 
     Service Act (42 U.S.C. 289a-2) with respect to the inclusion 
     of minorities in clinical research and on particular health 
     conditions affecting the health of members of minority groups 
     which should be studied as part of the Department's medical 
     research program and promote cooperation between the 
     Department and other sponsors of medical research of 
     potential benefit to veterans who are minorities.
       ``(11) Provide support and administrative services to the 
     Advisory Committee on Minority Veterans provided for under 
     section 544 of this title.''.
       (c) Definition of Minority Veterans.--Section 317 is 
     amended by adding at the end the following:
       ``(g) In this section--
       ``(1) The term `veterans who are minorities' means veterans 
     who are minority group members.
       ``(2) The term `minority group member' has the meaning 
     given such term in section 544(d) of this title.''.
       (d) Clarification of Functions of Center for Women 
     Veterans.--Section 318(d)(10) is amended by striking out 
     ``(relating to'' and all that follows through ``and of'' and 
     inserting in lieu thereof ``(42 U.S.C. 289a-2) with respect 
     to the inclusion of women in clinical research and on''.
       (e) Additional Functions of Advisory Committees.--(1) 
     Section 542(b) is amended by inserting ``, including the 
     Center for Women Veterans'' before the period at the end.
       (2) Section 544(b) is amended by inserting ``, including 
     the Center for Minority Veterans'' before the period at the 
     end.
       (f) Termination Date of Advisory Committee on Minority 
     Veterans.--Section 544(e) is amended by striking out 
     ``December 31, 1997'' and inserting in lieu thereof 
     ``December 31, 1999''.

     SEC. 303. OUTER BURIAL RECEPTACLES.

       (a) In General.--Subsection (d) of section 2306 is 
     amended--
       (1) in paragraph (1), by striking out ``a grave liner'' 
     each place it appears and inserting in lieu thereof ``an 
     outer burial receptacle'';
       (2) in paragraph (2)--
       (A) by striking out ``grave liners'' and inserting in lieu 
     thereof ``outer burial receptacles''; and
       (B) by striking out ``specifications and procedures'' and 
     inserting in lieu thereof ``regulations or procedures''; and
       (3) by adding at the end the following:
       ``(3) Regulations or procedures under paragraph (2) may 
     specify that--
       ``(A) an outer burial receptacle other than a grave liner 
     be provided in lieu of a grave liner at the election of the 
     survivors of the interred veteran; and
       ``(B) if an outer burial receptacle other than a grave 
     liner is provided in lieu of a grave liner upon an election 
     of such survivors, such survivors be required--
       ``(i) to pay the amount by which the cost of the outer 
     burial receptacle exceeds the cost of the grave liner that 
     would otherwise have been provided in the absence of the 
     election; and
       ``(ii) to pay the amount of the administrative costs 
     incurred by the Secretary concerned in providing the outer 
     burial receptacle in lieu of such grave liner.
       ``(4) Regulations or procedures under paragraph (2) may 
     provide for the use of a voucher system, or other system of 
     reimbursement approved by the Secretary concerned, for 
     payment for outer burial receptacles other than grave liners 
     provided under such regulations or procedures.''.
       (b) Conforming Amendments.--(1) The section heading of such 
     section is amended to read as follows:

     ``Sec. 2306. Headstones, markers, and burial receptacles''.

       (2) The table of sections at the beginning of chapter 23 is 
     amended by striking out the item relating to section 2306 and 
     inserting in lieu thereof the following new item:

``2306. Headstones, markers, and burial receptacles.''.

     SEC. 304. CLARIFICATION OF ELIGIBILITY OF MINORS FOR BURIAL 
                   IN NATIONAL CEMETERIES.

       Section 2402(5) is amended by inserting after ``minor 
     child'' the following: ``(which for purposes of this chapter 
     includes a child under 21 years of age, or under 23 years of 
     age if pursuing a course of instruction at an approved 
     educational institution)''.

     SEC. 305. EXTENSION OF AUTHORITY TO TREAT ALTERNATIVE TEACHER 
                   CERTIFICATION PROGRAMS AS EDUCATIONAL 
                   INSTITUTIONS FOR CERTAIN EDUCATIONAL ASSISTANCE 
                   PURPOSES.

       Section 3452(c) is amended in the second sentence by 
     striking out ``September 30, 1996'' and inserting in lieu 
     thereof ``December 31, 1998''.

     SEC. 306. DIRECT LOANS TO REFINANCE LOANS UNDER NATIVE 
                   AMERICAN VETERAN HOUSING LOAN PILOT PROGRAM.

       (a) Authority.--Section 3762 is amended--
       (1) by redesignating subsection (h) as subsection (i); and
       (2) by inserting after subsection (g) the following new 
     subsection (h):
       ``(h)(1) The Secretary may make direct loans to Native 
     American veterans in order to enable such veterans to 
     refinance existing loans made under this section.
       ``(2)(A) The Secretary may not make a loan under this 
     subsection unless the loan meets the requirements set forth 
     in subparagraphs (B), (C), and (E) of paragraph (1) of 
     section 3710(e) of this title.
       ``(B) The Secretary may not make a loan under this 
     subsection unless the loan will bear an interest rate at 
     least one percentage point less than the interest rate borne 
     by the loan being refinanced.
       ``(C) Paragraphs (2) and (3) of such section 3710(e) shall 
     apply to any loan made under this subsection, except that for 
     the purposes of this subsection the reference to subsection 
     (a)(8) of section 3710 of this title in such paragraphs (2) 
     and (3) shall be deemed to be a reference to this 
     subsection.''.

[[Page S11778]]

       (b) Loan Fee.--Section 3729(a)(2)(E) of such title is 
     amended by striking out ``or 3712(a)(1)(F)'' and inserting in 
     lieu thereof ``3712(a)(1)(F), or 3762(h)''.

     SEC. 307. CLOTHING ALLOWANCE FOR INCARCERATED VETERANS.

       (a) In General.--Chapter 53 is amended by inserting after 
     section 5313 the following new section:

     ``Sec. 5313A. Limitation on payment of clothing allowance to 
       incarcerated veterans

       ``In the case of a veteran incarcerated in a Federal, 
     State, or local penal institution for a period in excess of 
     sixty days and furnished clothing without charge by the 
     institution, the amount of any clothing allowance payable to 
     the veteran under section 1162 of this title shall be reduced 
     by an amount equal to \1/365\th of the amount of the 
     allowance otherwise payable under that section for each day 
     during the 12-month period preceding the date of the payment 
     of the allowance on which the veteran was so incarcerated.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 5313 the following new item:

``5313A.  Limitation on payment of clothing allowance to incarcerated 
              veterans.''

     SEC. 308. APPOINTMENT OF VETERANS SERVICE ORGANIZATIONS AS 
                   CLAIMANTS' REPRESENTATIVES.

       (a) Power of Attorney Naming a Veterans Service 
     Organization.--Section 5902 is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c)(1) Unless a claimant specifically indicates in a 
     power of attorney filed with the Department a desire to 
     appoint only a recognized representative of an organization 
     listed in or approved under subsection (a), the Secretary 
     may, for any purpose, treat the power of attorney naming such 
     an organization, a specific office of such an organization, 
     or a recognized representative of such an organization as the 
     claimant's representative as an appointment of the entire 
     organization as the claimant's representative.
       ``(2) Whenever the Secretary is required or permitted to 
     notify a claimant's representative, and the claimant has 
     named in a power of attorney an organization listed in or 
     approved under subsection (a), a specific office of such an 
     organization, or a recognized representative of such an 
     organization without specifically indicating a desire to 
     appoint only a recognized representative of the organization, 
     the Secretary shall notify the organization at the address 
     designated by the organization for the purpose of receiving 
     the notification concerned.''.
       (b) Applicability.--The amendments made by this section 
     apply to any power of attorney filed with the Department of 
     Veterans Affairs, regardless of the date of its execution.

     SEC. 309. PROVISION OF COPIES OF BOARD OF VETERANS' APPEALS 
                   DECISIONS.

       Section 7104(e) is amended to read as follows:
       ``(e)(1) After reaching a decision on a case, the Board 
     shall promptly mail a copy of its written decision to the 
     claimant at the last known address of the claimant.
       ``(2) If the claimant has an authorized representative, the 
     Board shall--
       ``(A) mail a copy of its written decision to the authorized 
     representative at the last known address of the authorized 
     representative; or
       ``(B) send a copy of its written decision to the authorized 
     representative by any means reasonably likely to provide the 
     authorized representative with a copy of the decision within 
     the same time a copy would be expected to reach the 
     authorized representative if sent by first-class mail.''.

     SEC. 310. EXTENSION OF CERTAIN AUTHORITIES FOR SERVICES FOR 
                   HOMELESS VETERANS.

       (a) Authority for Community-Based Residential Care for 
     Homeless Chronically Mentally Ill Veterans and Other 
     Veterans.--Section 115(d) of the Veterans' Benefits and 
     Services Act of 1988 (38 U.S.C. 1712 note) is amended by 
     striking out ``December 31, 1997'' and inserting in lieu 
     thereof ``December 31, 1998''.
       (b) Authorizations of Appropriations for Homeless Veterans 
     Reintegration Projects.--Section 738(e)(1) of the Stewart B. 
     McKinney Homeless Assistance Act (42 U.S.C. 11448(e)(1)) is 
     amended by adding at the end the following:
       ``(E) $10,000,000 for fiscal year 1997.
       ``(F) $10,000,000 for fiscal year 1998.''.
    TITLE IV--EMPLOYMENT AND REEMPLOYMENT RIGHTS OF MEMBERS OF THE 
                           UNIFORMED SERVICES

     SEC. 401. PURPOSES.

       Section 4301(a)(2) is amended by striking out ``under 
     honorable conditions''.

     SEC. 402. DEFINITIONS.

       Section 4303(16) is amended by inserting ``national'' 
     before ``emergency''.

     SEC. 403. DISCRIMINATION AGAINST PERSONS WHO SERVE IN THE 
                   UNIFORMED SERVICES AND ACTS OF REPRISAL 
                   PROHIBITED.

       Section 4311 is amended by striking out subsections (b) and 
     (c) and inserting in lieu thereof the following:
       ``(b) An employer may not discriminate in employment 
     against or take any adverse employment action against any 
     person because such person (1) has taken an action to enforce 
     a protection afforded any person under this chapter, (2) has 
     testified or otherwise made a statement in or in connection 
     with any proceeding under this chapter, (3) has assisted or 
     otherwise participated in an investigation under this 
     chapter, or (4) has exercised a right provided for in this 
     chapter. This subsection shall apply with respect to a person 
     regardless of whether the person has performed service in the 
     uniformed services.
       ``(c) An employer shall be considered to have engaged in 
     actions prohibited--
       ``(1) under subsection (a), if the person's membership, 
     application for membership, service, application for service, 
     or obligation for service in the uniformed services is a 
     motivating factor in the employer's action, unless the 
     employer can prove that the action would have been taken in 
     the absence of such membership, application for membership, 
     service, application for service, or obligation for service; 
     or
       ``(2) under subsection (b), if the person's (A) action to 
     enforce a protection afforded any person under this chapter, 
     (B) testimony or making of a statement in or in connection 
     with any proceeding under this chapter, (C) assistance or 
     other participation in an investigation under this chapter, 
     or (D) exercise of a right provided for in this chapter, is a 
     motivating factor in the employer's action, unless the 
     employer can prove that the action would have been taken 
     in the absence of such person's enforcement action, 
     testimony, statement, assistance, participation, or 
     exercise of a right.
       ``(d) The prohibitions in subsections (a) and (b) shall 
     apply to any position of employment, including a position 
     covered by section 4312(d)(1)(C).''.

     SEC. 404. REEMPLOYMENT RIGHTS OF PERSONS WHO SERVE IN THE 
                   UNIFORMED SERVICES.

       (a) Inclusion of Preparation and Travel Time Prior to 
     Service.--Section 4312(a) is amended by striking out ``who is 
     absent from a position of employment'' and inserting in lieu 
     thereof ``whose absence from a position of employment is 
     necessitated''.
       (b) Limitation on Service Exemption to War or National 
     Emergency.--Section 4312(c)(4)(B) is amended to read as 
     follows:
       ``(B) ordered to or retained on active duty (other than for 
     training) under any provision of law because of a war or 
     national emergency declared by the President or the Congress, 
     as determined by the Secretary concerned;''.
       (c) Brief, Nonrecurrent Periods of Service.--Section 
     4312(d)(2)(C) is amended by striking out ``is brief or for a 
     nonrecurrent period and without a reasonable expectation'' 
     and inserting in lieu thereof ``is for a brief, nonrecurrent 
     period and there is no reasonable expectation''.
       (d) Conforming Amendments to Redesignations in Title 10.--
     Section 4312(c) is amended--
       (1) in paragraph (3), by striking out ``section 270'' and 
     inserting in lieu thereof ``section 10147''; and
       (2) in paragraph (4)--
       (A) by striking out ``section 672(a), 672(g), 673, 673b, 
     673c, or 688'' in subparagraph (A) and inserting in lieu 
     thereof ``section 688, 12301(a), 12301(g), 12302, 12304, or 
     12305'';
       (B) by striking out ``section 673b'' in subparagraph (C) 
     and inserting in lieu thereof ``section 12304''; and
       (C) by striking out ``section 3500 or 8500'' in 
     subparagraph (E) and inserting in lieu thereof ``section 
     12406''.

     SEC. 405. REEMPLOYMENT POSITIONS.

       Section 4313(a)(4) is amended--
       (1) by striking out ``uniform services'' in subparagraph 
     (A)(ii) and inserting in lieu thereof ``uniformed services''; 
     and
       (2) by striking out ``of lesser status and pay which'' and 
     inserting in lieu thereof ``which is the nearest 
     approximation to a position referred to first in clause 
     (A)(i) and then in clause (A)(ii) which''.

     SEC. 406. LEAVE.

       Section 4316(d) is amended by adding at the end the 
     following new sentence: ``No employer may require any such 
     person to use vacation, annual, or similar leave during such 
     period of service.''.

     SEC. 407. HEALTH PLANS.

       Section 4317(a) is amended--
       (1) by striking out ``(a)(1)(A) Subject to paragraphs (2) 
     and (3), in'' and inserting in lieu thereof ``(a)(1) In'';
       (2) by redesignating clauses (i) and (ii) of paragraph (1) 
     (as amended by paragraph (1) of this section) as 
     subparagraphs (A) and (B), respectively;
       (3) by redesignating subparagraph (B) as paragraph (2); and
       (4) by redesignating subparagraph (C) as paragraph (3), and 
     in that paragraph by redesignating clauses (i) and (ii) as 
     subparagraphs (A) and (B), respectively, and by redesignating 
     subclauses (I) and (II) as clauses (i) and (ii), 
     respectively.

     SEC. 408. EMPLOYEE PENSION BENEFIT PLANS.

       The last sentence of section 4318(b)(2) is amended by 
     striking out ``services,'' and inserting in lieu thereof 
     ``services, such payment period''.

     SEC. 409. ENFORCEMENT OF EMPLOYMENT OR REEMPLOYMENT RIGHTS.

       (a) Technical Amendment.--The second sentence of section 
     4322(d) is amended by inserting ``attempt to'' before 
     ``resolve''.
       (b) Notification.--Section 4322(e) is amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``with respect to a complaint under subsection (d) are 
     unsuccessful,'' and inserting in lieu thereof ``with respect 
     to any complaint filed under subsection (a) do not resolve 
     the complaint,''; and
       (2) in paragraph (2), by inserting ``or the Office of 
     Personnel Management'' after ``Federal executive agency''.

     SEC. 410. ENFORCEMENT OF RIGHTS WITH RESPECT TO A STATE OR 
                   PRIVATE EMPLOYER.

       Section 4323(a) is amended--
       (1) in paragraph (1), by striking out ``of an unsuccessful 
     effort to resolve a complaint''; and

[[Page S11779]]

       (2) in paragraph (2)(A), by striking out ``regarding the 
     complaint under section 4322(c)'' and inserting in lieu 
     thereof ``under section 4322(a)''.

     SEC. 411. ENFORCEMENT OF RIGHTS WITH RESPECT TO FEDERAL 
                   EXECUTIVE AGENCIES.

       (a) Referral.--Section 4324(a)(1) is amended by striking 
     out ``of an unsuccessful effort to resolve a complaint 
     relating to a Federal executive agency''.
       (b) Alternative Submission of Complaint.--Section 4324(b) 
     is amended--
       (1) in the matter preceding paragraph (1), by inserting 
     ``or the Office of Personnel Management'' after ``Federal 
     executive agency''; and
       (2) in paragraph (1), by striking out ``regarding a 
     complaint under section 4322(c)'' and inserting in lieu 
     thereof ``under section 4322(a)''.
       (c) Relief.--Section 4324(c)(2) is amended--
       (1) by inserting ``or the Office of Personnel Management'' 
     after ``Federal executive agency''; and
       (2) by striking out ``employee'' and inserting in lieu 
     thereof ``Office''.

     SEC. 412. ENFORCEMENT OF RIGHTS WITH RESPECT TO CERTAIN 
                   FEDERAL AGENCIES.

       Section 4325(d)(1) is amended--
       (1) by striking out ``, alternative employment in the 
     Federal Government under this chapter,''; and
       (2) by striking out ``employee'' the last place it appears 
     and inserting in lieu thereof ``employees''.

     SEC. 413. CONDUCT OF INVESTIGATION; SUBPOENAS.

       Section 4326(a) is amended by inserting ``have reasonable 
     access to and the right to interview persons with information 
     relevant to the investigation and shall'' after ``at all 
     reasonable times,''.

     SEC. 414. TRANSITION RULES AND EFFECTIVE DATES.

       (a) Reemployment.--Section 8(a) of the Uniformed Services 
     Employment and Reemployment Rights Act of 1994 (Public Law 
     103-353; 108 Stat. 3175; 38 U.S.C. 4301 note) is amended--
       (1) in paragraph (3), by adding at the end thereof the 
     following: ``Any service begun up to 60 days after the date 
     of enactment of this Act, which is served up to 60 days after 
     the date of enactment of this Act pursuant to orders issued 
     under section 502(f) of title 32, United States Code, shall 
     be considered under chapter 43 of title 38, United States 
     Code, as in effect on the day before such date of enactment. 
     Any service pursuant to orders issued under such section 
     502(f) served after 60 days after the date of enactment of 
     this Act, regardless of when begun, shall be considered under 
     the amendments made by this Act.''; and
       (2) in paragraph (4), by striking out ``such period'' and 
     inserting in lieu thereof ``such 60-day period''.
       (b) Insurance.--Section 8(c)(2) of such Act is amended by 
     striking out ``person on active duty'' and inserting in lieu 
     thereof ``person serving a period of service in the uniformed 
     services''.

     SEC. 415. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), the 
     amendments made by this title shall take effect as of October 
     13, 1994.
       (b) Reorganized Title 10 References.--The amendments made 
     by section 404(d) of this Act shall take effect as of 
     December 1, 1994.


                           Amendment No. 5418

  Mr. NICKLES. Mr. President, Senator Simpson has an amendment at the 
desk, and I ask for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Oklahoma [Mr. Nickles] for Mr. Simpson, 
     for himself and Mr. Rockefeller, proposes amendment numbered 
     5418.

  Mr. NICKLES. Mr. President, I ask unanimous consent that further 
reading of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.'')
  Mr. SIMPSON. Mr. President, I rise to speak briefly on S. 1711, the 
Veterans Benefits Improvements Act of 1996.
  This bill is one of three major veterans' bills being considered this 
week by the Senate; the other two are S. 1791, a bill to provide cost 
of living increases to recipients of veterans' benefits, and H.R. 3118, 
a compromise measure crafted jointly by the members of the House and 
Senate Committees on Veterans' Affairs which would, among other things, 
reform the eligibility standards for VA health care. These three bills 
are the culmination of 2 years of work in the Veterans' Affairs 
Committee. They are all good bills, bills that have achieved bipartisan 
support within the Committee. They are also bills that, while they put 
into place useful, even vital, legislation--without ``breaking the 
bank.''
  Time is becoming a precious commodity as the Senate winds down in 
these final days, so I will not overstay my welcome with a lengthy 
explanation of the contents of S. 1711. A detailed explanation of the 
original bill as reported by the Committee on Veterans' Affairs--and of 
the eight bills from which it is derived--is in the committee's report 
of the legislation. A detailed explanation of the bill, as it would be 
amended in accordance with an agreement reached with our House 
counterparts, is set out in the ``Joint Explanatory Statement'' which I 
request be made part of the Record. I will, however, summarize.
  S. 1711, as reported, would, first, create a commission proposed by 
our former leader, Bob Dole. That commission, the Commission on Service 
Members and Veterans Transition Assistance, would study current 
programs designed to assist service members and veterans in readjusting 
to civilian life after service. Based on that analysis, it would report 
to the Congress its recommendations on how such programs might be 
improved.
  I have yet to see a Government program, Mr. President, that cannot 
stand improvement, so I am confident that the next Congress will be 
provided with useful information on how we can better assist veterans 
in readjusting to civilian life.
  S. 1711 would also put into place a number of reforms in VA-
administered life insurance programs. Most notably, it would make 
lifetime insurance coverage available to retired reservists who now can 
only get such coverage until they are 61-years old. It would also 
facilitate the viatication--or cashing out--of life insurance policies 
by the terminally ill before they die. These are significant, and 
useful, reforms.
  The bill would also redefine the term ``Vietnam era'' for purposes of 
VA programs. Some members of the Senate may be surprised to learn that 
the legal definition of the ``Vietnam era'' extends only from August 5, 
1964--the date of the incident which gave rise to the Gulf of Tonkin 
resolution--until May 7, 1975. United States troops were in Vietnam, 
however, before that time, and by February 28, 1961, they were 
accompanying their Vietnamese counterparts on combat missions.
  In short, U.S. troops were subjected to the real perils of ground 
combat at least as early as February 28, 1961. This bill would 
recognize that fact by redefining the term ``Vietnam era'' back to 
February 28, 1961 for purposes of most VA programs. This amendment is 
more than a symbolic one--though the symbolic value of recognizing the 
valor of those who were first into Vietnam should not be lost. Some VA 
benefits--most notably pension benefits to assist poor ``wartime'' 
veterans who are disabled due to non-service-connected injury or 
disease--are only available to those who served in wartime. It is 
entirely appropriate that such benefits be extended to those who 
actually faced peril in Vietnam before that war's ``legal'' starting 
date.
  The bill would make a number of other constructive improvements to VA 
education, home loan, and burial benefit programs, and would also make 
necessary changes in procedures governing VA's adjudication of claims. 
I know that every Senator is concerned about the time it takes for VA 
to process a veteran's application for benefits. Progress is being made 
on that front--but more needs to be made.
  Finally, Mr. President, this bill, as reported, would make a series 
of technical corrections to a massive piece of legislation approved by 
the 103d Congress, the Uniformed Services Employment and Reemployment 
Rights Act of 1994, Public Law 103-353. That bill was the product of a 
multiyear executive branch effort, spanning both the Bush and Clinton 
administrations, which resulted in a recommended updating of Veterans 
Reemployment Rights laws which dated back to World War II. Those laws, 
which allow service members to return to prior employment after 
service, had not been systematically reviewed since World War II. The 
1994 legislation took care of that--and did so, I might add, after an 
extraordinary display of joint, cooperative effort by the executive and 
legislative branches, and by employer and veterans' groups. But, as is 
often the case in a massive restructuring of the law, the bill, as 
enacted, contained both ambiguities and technical oversights and 
errors. S. 1711 contains provisions to correct such problems.
  Mr. President, the amendment to S. 1711 which I offer today contains 
each and all of these key provisions from S. 1711. It would add, 
however, a series of provisions adopted by the House in various bills 
which I--and the ranking

[[Page S11780]]

member, my good friend, Senator Jay Rockefeller--have agreed to. 
Crucial among those provisions are amendments to the law which will 
have the effect of overturning the result reached by the Court of 
Veterans Appeals in the case, Davenport v. Brown, 7 Vet.App. 476 
(1995). In that case, the Court construed existing law creating 
veterans' eligibility for vocational rehabilitation benefits, and ruled 
that since the statutes do not require that there be a connection 
between the veteran's service-connected disability and his or her 
employment handicap, VA could not impose such a requirement as a 
condition to the receipt of vocational rehabilitation benefits. That 
requirement--which VA had imposed by now-overturned regulations 
literally for decades--would be reinstated.

  The House-enacted amendments to which we have agreed would also put 
into place a number if constructive changes to the ``Montgomery GI 
Bill.'' It would provide for benefits to students participating in 
cooperative and open-circuit television programs. More importantly, it 
would allow certain previously ineligible persons--those eligible for 
the education benefits program in place before enactment of the 
Montgomery GI bill, and certain National Guard members and reservists--
to ``buy into'' Montgomery GI bill benefits.
  Finally, these additions would create equity with respect to benefits 
earned by deceased veterans. First, they would increase the benefits 
made available to the survivors of veterans who were entitled to VA 
compensation benefits, but who had not established their entitlement 
through VA's adjudication process before they died. S. 1711 would allow 
the survivors of such veterans to claim 2 years' worth of compensation. 
It would also allow the survivors of any veteran receiving compensation 
to retain compensation paid for the month within which the veteran 
died. Currently, Mr. President, VA requests that the veteran's widow 
refund money previously sent by VA.
  As I said when I began these comments, S. 1711 is a good, thoughtful, 
useful bill. It is also a bill that does not ``bust the budget.'' It is 
just the sort of legislation--good legislation that does not add to the 
deficit--that I was determined to guide through the Veterans' Affairs 
Committee when I assumed the chairmanship of the committee this 
Congress.
  I recall that when I assumed the job of chairman in the 104th 
Congress--much to the chagrin of some so-called ``leaders'' of the 
veterans community--there was a good deal of gnashing of teeth. Worse, 
there was much distortion of what they assumed I planned to do. It was 
bandied about that I would cut veterans' benefits. Many assumed that, 
and based on that assumption, some service organizations fanned the 
flames of fear among veterans. Their assumptions about what I would 
seek to accomplish were grossly in error, as this and other bills--and 
history--have shown. They were based, I can only surmise, on the 
mistaken belief that my zeal for restraining the growth in entitlements 
spending would lead me to cutting veterans' benefits. I, of course, had 
never proposed cuts--because cuts in entitlements' spending are not 
necessary to get control over the deficit. All that is required is 
restrained growth.
  The bill before the Senate now reflects that sort of restraint. It 
includes positive, useful, constructive, bipartisan legislation that 
helps veterans, and does not contribute to the deficit. Such 
legislation is possible, if all start with the determination to craft 
that form of thoughtful legislation. I do thank the members of the 
Veterans' Affairs Committee, particularly the committee's ranking 
minority member, my friend, Senator ``Jay'' Rockefeller, and the 
committee's staff, for working with me to put together that sort of 
legislation.
  I urge the Senate's approval of S. 1711.
  Mr. President, I ask unanimous consent that relevant material be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

              EXPLANATORY STATEMENT ON S. 1711, AS AMENDED

       S. 1711, as amended, reflects a compromise agreement that 
     the House and Senate Committees on Veterans' Affairs have 
     reached on certain bills considered in the House of 
     Representatives and the Senate during the 104th Congress. 
     These are H.R. 1483, which passed the House on May 21, 1996; 
     H.R. 2289, which passed the House on December 12, 1995; H.R. 
     3373, which passed the House on May 21, 1996; H.R. 3673, 
     which passed the House on July 16, 1996; H.R. 3674, which 
     passed the House on July 17, 1996 (hereinafter referred to in 
     context as ``House Bill''); and S. 1711, which passed the 
     Senate on September 27, 1996 (hereinafter referred to as 
     ``Senate Bill'').
       The House and Senate Committees on Veterans' Affairs have 
     prepared the following explanation of S. 1711, 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--Education Benefits


                    REPEAL OF THE DAVENPORT DECISION

                              Current law

       Since 1917, when vocational rehabilitation for veterans was 
     established by law, a causal relationship between a veteran's 
     service-connected disability and an employment handicap was 
     required for service-disabled veterans to be eligible for 
     vocational rehabilitation benefits. This nexus formed the 
     basis for the original program and defined the Nation's 
     responsibility for vocational rehabilitation to those 
     veterans who incur or aggravate a disability while serving in 
     our Armed Forces.
       In 1980, Public Law 96-466 extensively revised vocational 
     rehabilitation programs in chapter 31 of title 38 and the 
     express statutory language requiring the causal relationship 
     was omitted. As a result, under current law, veterans seeking 
     vocational rehabilitation benefits under chapter 31 satisfy 
     the statutory requirements if they (1) have a compensable 
     service-connected disability and (2) are found to be in need 
     of rehabilitation because of an employment handicap. 
     Nonetheless, when VA promulgated regulations related to the 
     changes in the vocational rehabilitation programs, VA 
     continued to require the causal relationship as it had in the 
     past.
       A 1995 Court of Veterans Appeals decision, Davenport v. 
     Brown, 7 Vet.App. 476 (1995), found no statutory support for 
     VA's regulations requiring a causal relationship between the 
     service-connected disability and the employment handicap. As 
     a result, VA estimated that the decision would produce 32,366 
     additional participants in vocational rehabilitation programs 
     over 5 years--a 14.4 percent increase in participation and a 
     14.6 percent increase in entitlement spending.

                               House bill

       Section 101 of H.R. 3674 would, in effect, reverse the 
     Davenport decision, and reinstate original Congressional 
     intent by restoring the requirement of a causal relationship 
     between a veteran's service-connected disability and 
     employment handicap for the purpose of awarding vocational 
     rehabilitation benefits.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       Section 101 follows the House bill.


              ALTERNATIVE TEACHING CERTIFICATION PROGRAMS

                              Current law

  A pilot program which provides Montgomery GI Bill benefits to persons 
pursuing State-approved alternative teacher programs through non-
traditional educational institutions established under Public Law 103-
446 and defined at section 3452(c) of title 38, United States Code, is 
set to expire on September 30, 1996. Such programs typically offer 
certification through a combination of course work and ``student 
teaching'' under the guidance of a certified teacher and are sponsored 
by educational institutions, such as State or local boards of 
education. The program saves both time and tuition for the new teacher.

                               House bill

       Section 105 of H.R 3674 would make the program permanent.

                              Senate bill

       Section 305 of S. 1711 would extend the program for twenty-
     seven months.

                          Compromise agreement

       Section 102 follows the House bill.


                 gi bill ``two-year'' rule modification

                              Current law

       Under section 3689 of title 38, GI Bill benefits are not 
     authorized for the pursuit of training unless the institution 
     and course offered have been in operation for two years.
       Under chapter 36 of title 38, GI Bill benefits are not 
     authorized for courses offered on or through military bases 
     under contract with the Department of Defense (DoD).

                               House bill

       Section 201 of H.R. 3673 would: (a) remove the two year 
     restriction on all degree granting institutions, including 
     branch campuses (but not on non-degree granting 
     institutions); (b) authorize the Secretary to approve

[[Page S11781]]

     the use of GI Bill benefits for courses offered on or through 
     military bases under contract with DoD; and (c) strengthen 
     and clarify the requirements under which the State Approving 
     Agencies approve courses.

                              Senate bill

       The Senate bill contains no comparable provisions.

                          Compromise agreement

       Section 103 follows the House bill.


elimination of the distinction between open circuit tv and independent 
                                 study

                              Current law

       Under section 3482(f) of title 38, a veteran who takes a 
     course by open circuit TV, unlike other courses of 
     independent study, must be concurrently enrolled in an in-
     residence course to receive educational assistance under the 
     GI Bill.

                               House bill

       Section 202 of H.R. 3673 would eliminate the requirement of 
     being concurrently enrolled in an in-residence course, and 
     would, for benefit purposes, make a course taught by open 
     circuit TV equivalent to a course in independent study.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       Section 104 follows the House bill.


                          cooperative programs

                              Current law

       Under sections 3032, 3231 and 3532(b), veterans enrolled in 
     cooperative training programs--a combination of in-residence 
     class work at an institution of higher learning and work 
     experience at a job site--receive 80 percent of the full-time 
     educational benefit rate.

                               House bill

       Section 204 of H.R. 3673 would authorize veterans enrolled 
     in cooperative training programs to receive the full amount 
     of the educational benefit rate.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       Section 105 follows the House bill.


       enrollment of veap participants in the montgomery gi bill

                              Current law

       Chapter 32 authorizes the Secretary to operate the 
     Veterans' Education Assistance Program (VEAP) for post-
     Vietnam servicemembers who enrolled after December 31, 1976 
     and before April 1, 1987. VEAP was the first VA contributory 
     education benefit plan. Under VEAP, active duty 
     servicemembers made voluntary contributions to an individual 
     account which the federal government matched at a 2:1 ratio. 
     The maximum participant contribution was $2,700 and 
     participants could elect to make a lump-sum contribution to 
     the fund. In most cases, a veteran had 10 years in which to 
     use the education benefit and/or make a claim for the unused 
     contribution.
       According to VA statistics, 18,927 persons used their VEAP 
     entitlement in fiscal year 1995, which amounted to four 
     percent of the total persons using VA training and education 
     benefits. By comparison, the Montgomery GI Bill provided 
     benefits to nearly 292,000 trainees, or 59 percent of the 
     total.

                               House bill

       Section 103 of H.R. 3674 would authorize servicemembers 
     participating in VEAP to transfer to the Montgomery GI Bill.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       Section 106 follows the House bill.


 montgomery gi bill eligibility for certain current and former active 
              duty members of army and air national guard

                              Current law

       Current and former active duty members of the Army and Air 
     National Guard who served between June 30, 1985 and November 
     29, 1989 are not eligible to participate in any VA education 
     programs.

                               House bill

       Section 104 of H.R. 3674 would provide eligibility for the 
     Montgomery GI Bill to certain current and former active duty 
     members of the Army and Air Nation Guard who served between 
     June 30, 1985 and November 29, 1989.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       Section 107 follows the House bill.

                 Title II--Housing and Memorial Affairs

                          Subtitle A--Housing


                   enhanced loan asset sale authority

                              Current law

       Section 3720(h) of title 38 authorizes VA to guarantee the 
     timely payment of principal and interest to purchasers of 
     real estate mortgage investment conduits (REMICs). REMICs are 
     used to ``bundle'' and market a number of vendee loan notes--
     that is, notes on direct loans made by VA to purchasers of 
     VA-acquired real estate--so that they may be sold for cash 
     under favorable terms. Under this authority, VA guarantees to 
     REMIC purchasers that principal and interest will be paid in 
     a timely manner. That assurance facilitates the marketing of 
     such securities and enhances their value in the marketplace 
     and simultaneously reduces the interest paid by VA on the 
     notes, thus increasing the return to the Treasury when such 
     securities are sold.
       VA's authority to guarantee REMICs expires on December 31, 
     1996.

                               House bill

       Section 205 of H.R. 3673 would extend, through December 31, 
     1997, VA's authority to guarantee the timely payment of 
     principal and interest to purchasers of REMICs.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       Section 201 follows the House bill.


               refinancing of native american home loans

                              Current law

       Section 3762 authorizes the Secretary to make a direct 
     housing loan to a Native American veteran if, at the time the 
     loan is made, the Secretary and the tribal organization that 
     has jurisdiction over the veteran have entered a memorandum 
     of understanding with respect to such loans.

                               House bill

       The House bill contains no provision relating to this 
     matter.

                              Senate bill

       Section 306 of S. 1711 would authorize the Secretary to 
     make direct loans to Native American veterans in order to 
     enable such veterans to refinance existing loans made under 
     section 3762 providing the new interest rate is at least one 
     percent below the existing mortgage.

                          Compromise agreement

       Section 202 follows the Senate bill.

                      Subtitle B--Memorial Affairs


                       minors' burial eligibility

                              Current law

       Prior to 1973, the Department of the Army operated national 
     cemeteries. In 1973, this function was transferred to the VA 
     with an intent that similar eligibility rules should apply 
     under the VA's management. Title 24 of United State Code, 
     regarding the Army, defines the term ``minor child'' as a 
     person under age 21. However, VA regulations at 38 C.F.R. 
     1.620(g) allow burial eligibility for a ``minor child'' if 
     such a child was, at death, under 21 or under 23 and pursuing 
     a course of instruction at an approved educational 
     institution.

                               House bill

       Section 201 of H.R. 3373 would clarify that for burial 
     purposes, ``minor child'' includes students up to age 23 who 
     had been pursuing a course of instruction at an approved 
     educational institution, and amend section 2402(5) of title 
     38 to incorporate VA's regulatory definition.

                              Senate bill

       Section 304 of S. 1711 contains an identical provision.

                          Compromise agreement

       Section 211 contains this provision.


  burial benefits for certain veterans who die in state nursing homes

                              Current law

       Section 2303(a) authorizes VA to pay burial benefits for 
     veterans who die in VA medical facilities or in facilities at 
     which the veteran was receiving hospital or nursing home care 
     under contract with VA.

                               House bill

       Section 303 of H.R. 3673 would provide burial costs and 
     transportation to the place of burial for a veteran who dies 
     in a State nursing home.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       Section 212 follows the House bill.


                        outer burial receptacles

                              Current law

       Section 2306(d) of title 38 requires the Secretary to 
     provide grave liners for each new grave in a national 
     cemetery in which remains are interred in a casket at no cost 
     to the veteran's survivors. The Secretary of the Army is also 
     authorized to provide a grave liner for such graves at 
     Arlington National Cemetery.

                               House bill

       The House bill contains no provision relating to this 
     matter.

                              Senate bill

       Section 303 of S. 1711 would require VA, and authorize the 
     Secretary of the Army, to furnish grave liners or burial 
     vaults or other casket receptacles as provided by regulations 
     or procedures adopted to implement this statutory change. 
     Such regulations or procedures would allow persons to elect 
     burial receptacles other than grave liners and, if they did, 
     would require them to pay any additional cost associated with 
     such products and, in addition, an amount which reflects the 
     administrative costs incurred in providing, and procuring, 
     that product choice.

                          Compromise agreement

       Section 213 follows the Senate bill.

                   Title III--Employment and Training

             Subtitle A--Veterans' Employment and Training


                          vets reorganization

                              Current law

       Section 4102A authorizes Veterans' Employment and Training 
     (VETS) regional offices under the Secretary of Labor equal to 
     the number of regional offices maintained by

[[Page S11782]]

     the Department of Labor's Employment and Training 
     Administration. VETS Regional Administrators are not required 
     to be veterans.
       Section 4103(a) authorizes full-time Federal clerical 
     support personnel to be assigned to each State Directors for 
     VETS in accordance with applicable provisions of title 5, 
     United States Code.
       Section 4103(b) requires each VETS State Director and 
     Assistant State Director to be a resident of the state of 
     appointment for at least two years prior to assuming the 
     position.

                               House bill

       Title II of H.R. 2289 would (a) reduce the number of VETS 
     regional administrators to no fewer than five and require 
     that each appointed after enactment of this bill be a 
     veteran; (b) expand the duties of certain clerical personnel 
     assigned to VETS State Directors to include more substantive 
     VETS program responsibilities; (c) maintain the residency 
     requirement except that an individual who had served as a 
     VETS State Director or Assistant State Director for at least 
     two years would become eligible for either position in any 
     state; and (d) authorize the Secretary of Labor to conduct a 
     pilot program to investigate methods of service delivery to 
     veterans.

                              Senate bill

       The Senate bill contains no comparable provisions.

                          Compromise agreement

       The Compromise Agreement incorporates some of the 
     provisions of the House bill. It requires that each Regional 
     Administrator appointed after enactment of the bill be a 
     veteran, and follows paragraphs (b) and (d) described in the 
     House bill.

  Subtitle B--Technical Amendments Relating to the Uniformed Services 
             Employment and Reemployment Rights Act of 1994


                      userra technical amendments

                              Current law

       The Uniformed Services Employment and Reemployment Rights 
     Act of 1994 (USERRA) revised chapter 43 of title 38, United 
     States Code, which safeguards the employment and reemployment 
     rights of members of the uniformed services. Because the laws 
     are complex and technical, the Committee anticipated that as 
     the law was implemented, minor problems would occur and 
     future technical amendments would be necessary to clarify the 
     intent of Congress.

                               House bill

       Title III of H.R. 2289 would make technical amendments to 
     chapter 43 of title 38.

                              Senate bill

       Title IV of S. 1711 contains substantially identical 
     provisions.

                          Compromise agreement

       In sections 311-313, the Compromise Agreement contains 
     these provisions.

               Title IV--Veterans Life Insurance Programs


          Servicemen's Group Life Insurance Program Amendments

                              Current law

       Under chapter 19 of title 38, the VA administers six life 
     insurance programs and supervises the administration of two 
     others for the benefit of servicemembers, veterans and their 
     beneficiaries. The two programs supervised by the VA, 
     Servicemen's Group Life Insurance (SGLI) and Veterans' Group 
     Life Insurance (VGLI), are administered under a contract with 
     the Prudential Insurance Company. SGLI provides low cost 
     group life insurance to persons on active duty, ready and 
     retired reservists, and persons in several other uniformed 
     services. VGLI, a post-separation insurance program, provides 
     for the conversion of SGLI policies to five-year renewable 
     term policies. When members of the Ready Reserve retire with 
     20 years of service or are transferred to the Retired Reserve 
     they may continue their SGLI coverage until they receive 
     their first retired paycheck or reach age 61, whichever 
     occurs first. Servicemembers covered by SGLI policies may not 
     convert their insurance to commercial policies upon 
     separation. Upon separation, they must convert to VGLI 
     policies, and VGLI policies may not be converted to 
     commercial policies for 5 years. The Department of Defense is 
     not required to furnish information about life insurance 
     programs.

                               House bill

       Sections 101-104 of H.R. 3373 would (a) merge the Retired 
     Reservists' component of SGLI with VGLI and make lifetime 
     coverage under VGLI available to Retired Reservists; (b) give 
     insureds an option to convert the VGLI policies to commercial 
     policies at any time; (c) require the appropriate Secretary 
     to furnish general information about life insurance to 
     servicemembers; and (d) change the name of Servicemen's Group 
     Life Insurance to Servicemembers' Group Life Insurance.

                              Senate bill

       Title II of S. 1711 contains substantially identical 
     provisions, except for the House provision described in (c).

                          Compromise agreement

       In sections 401-406, the Compromise Agreement follows the 
     House Bill.

     Title V--Department of Veterans Affairs Administrative Matters


               va centers for minority and women veterans

                              Current law

       Section 317 of title 38 established a Center for Minority 
     Veterans in VA and section 318 established a Center for Women 
     Veterans in VA. Each Center is run by a director who is 
     required to be a noncareer appointee in the Senior Executive 
     Service, appointed for a six year term.

                               House bill

       The House bill contains no provision relating to this 
     matter.

                              Senate bill

       Section 302 of S. 1711 would (a) allow career and noncareer 
     appointees to be directors of the centers; (b) expand the 
     functions of the Center for Minority Veterans and clarify 
     functions of the Center for Women Veterans in order to make 
     the functions of the centers more parallel; and (c) extend, 
     through December 31, 1999, the Advisory Committee on Minority 
     Veterans.

                          Compromise agreement

       Section 501 follows the Senate bill.


          repeal of incarcerated veterans' clothing allowance

                              Current law

       Under chapter 53 of title 38, VA is required to pay a 
     clothing allowance to each veteran, who, because of a 
     service-connected disability, wears or uses a prosthetic or 
     orthopedic appliance which tends to wear out or tear 
     clothing. VA also makes clothing allowance payments to each 
     veteran who uses medication prescribed for a service-
     connected skin condition and whose outer garments sustain 
     irreparable damage due to the use of that medication.

                               House bill

       Section 104 of H.R. 3673 would add a new section 5313A to 
     title 38 which would require VA to withhold payment on a pro-
     rated basis to veterans incarcerated for more than 60 days in 
     penal institutions and who receive institutional clothing at 
     no personal expense.

                              Senate bill

       Section 307 of S. 1711 contains a substantively identical 
     provision.

                          Compromise agreement

       Section 502 contains this provision.


         extension of veterans' claims adjudication commission

                              Current law

       Section 402 of the Veterans' Benefits Improvements Act of 
     1994 (Public Law 103-446) established the Veterans' Claims 
     Adjudication Commission to study the processes and procedures 
     of the VA for the adjudication, resolution, review and final 
     disposition of VA benefits claims. On April 23, 1996, the 
     Chairman of the Veterans' Claims Adjudication Commission 
     submitted a request for an extension in order to complete the 
     study requirements set forth in Public Law 103-446.

                               House bill

       Section 105 of H.R. 3673 would authorize the extension of 
     the Commission's final report deadline from May 2, 1996 to 
     December 31, 1996. Section 105 of H.R. 3673 would also 
     authorize an additional $75,000 in fiscal year 1996 and 
     $75,000 in the first two quarters of fiscal year 1997. These 
     funds would be available in either fiscal year.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       Section 503 follows the House bill.


      pilot program for use of contract physicians for disability 
                              examinations

                              Current law

       Physicians employed by the Veterans Health Administration 
     may conduct disability examinations of applicants for VA 
     benefits. There is no express provision in current law 
     relating to the use of contract physicians for disability 
     examinations of applicants for VA benefits.

                               House bill

       Section 103 of H.R. 3673 would establish a pilot program 
     for the use of contract physicians for disability 
     examinations at up to 10 VA regional offices.

                              Senate bill

       The Senate Bill contains no comparable provision.

                          Compromise agreement

       Section 504 follows the House bill. The Compromise 
     Agreement contains a requirement that the costs of the pilot 
     program be paid from the Compensation and Pensions account.


                       definition of vietnam era

                              Current law

       Section 101(29) of title 38 defines the term ``Vietnam 
     era'' as the period beginning August 5, 1964 and ending on 
     May 7, 1975.

                               House bill

       The House bill contains no provision relating to this 
     matter.

                              Senate bill

       Section 301 of S. 1711 would: (a) change the beginning date 
     of the Vietnam era from August 5, 1964 to February 28, 1961 
     in the case of a veteran who served in the Republic of 
     Vietnam for purposes of VA programs generally; and (b) change 
     the beginning date of the Vietnam era to January 9, 1962 for 
     VA benefits and health care eligibility provisions which 
     presume that the veteran had been exposed to herbicides and 
     defoliants while in the Republic of Vietnam.

[[Page S11783]]

                          Compromise agreement

       Section 505 follows the Senate bill.


   effective date of discontinuance of certain veterans' benefits by 
                      reason of death of recipient

                              Current law

       Section 5112(b) authorizes the Secretary to reduce or 
     discontinue the payment of compensation, dependency and 
     indemnity compensation, or pension benefits when the 
     recipient marries or remarries or dies. The effective date of 
     such a reduction or discontinuance is the last day of the 
     month before the marriage, remarriage or death occurs.

                               House bill

       Section 201 of H.R. 3674 would permit a surviving spouse to 
     retain compensation or pension payments pro rated to the day 
     of the death, instead of the last day of the previous month. 
     The effective date for this provision would be October 1, 
     1997.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       Section 506 follows the House bill but changes date of 
     payment to the last day of the month in which the veteran 
     dies. Where under section 506, the surviving spouse who has 
     been paid benefits for the full month in which the veteran 
     died, is subsequently determined to be entitled to DIC or 
     pension, it is expected that VA will reduce the award of DIC 
     or pension by the amount of benefits paid to the surviving 
     spouse for the month of the veteran's death.


            increase of accrued benefits payable after death

                              Current law

       Section 5121 authorizes the Secretary to make payments of 
     accrued benefits to survivors for one year when the veteran 
     dies prior to complete adjudication of a VA claim.

                               House bill

       Section 202 of H.R. 3674 would authorize the Secretary to 
     make payments of accrued benefits to survivors for two years 
     when the veteran dies prior to complete adjudication of a VA 
     claim.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       Section 507 follows the House bill.


                             bva provisions

                              Current law

       The Court of Veterans Appeals invalidated the Board of 
     Veterans' Appeals (Board) past practice of mailing decisions 
     in Trammell v. Brown, 6 Vet. App. 181 (1994). Section 7104(e) 
     of title 38, United States Code, specifies that ``the Board 
     shall promptly mail a copy of its written decision to the 
     claimant and the claimant's authorized representative (if 
     any).'' Prior to this decision, the Board's method of 
     ``mailing'' a copy of a decision to a representative depended 
     on where the representative was located. For a representative 
     at the Board's offices in Washington, D.C., a contractor 
     hand-delivered the Board decision to the representative. For 
     a representative at a VA regional office, the Board gave the 
     decision to the contractor, who ``bundled'' mail for the 58 
     VA regional offices and delivered the bundles to the U.S. 
     Postal Service. Upon receipt, each regional office sorted its 
     bundled mail and distributed any Board decision to the 
     appropriate representative at that regional office. For a 
     representative at an office at a VA facility, the Board 
     mailed its decision directly to the representative.
       The Court of Veterans Appeals held that the phrase ``the 
     Board shall promptly mail'' in section 7104(e) means that the 
     Board decision must be delivered directly by the Board into 
     the custody of the U.S. Postal Service. This decision 
     precluded a Board employee or contractor from delivering a 
     decision to a service organization representative. Rather, 
     the Board is currently required to deliver the decision to 
     the U.S. Postal Service.
       Section 5902 of title 38 authorizes the Secretary to 
     recognize representatives of certain veterans service 
     organizations in the preparation, presentation and 
     prosecution of VA benefit claims.

                               House bill

       The House bill contains no provisions relating to this 
     matter.

                              Senate bill

       Section 309 of S. 1711 would (a) permit the Board to send 
     its decisions to claimants' representatives by any means 
     reasonably calculated to provide them with a copy of the 
     decision within the same time a copy of the decision sent by 
     first-class mail would be expected to reach them; and (b) 
     permit VA to treat a claimant's power of attorney as an 
     appointment of an entire service organization as the 
     claimant's representative, unless the claimant specifically 
     indicates a desire to limit the power of attorney to a 
     specific representative of an organization. In cases where no 
     such specific indication is made, when the Secretary is 
     required or permitted to notify a claimant's representative, 
     the Secretary would be authorized to notify the organization 
     at the address designated by the organization for such 
     purposes.

                          Compromise agreement

       Section 508 follows the Senate bill.


                          va education service

                              Current law

       The VA's Education Service is currently located in 
     Washington, D.C. However, the VA has proposed to move its 
     offices to St. Louis, MO as part of the Veterans Benefits 
     Administration's effort to restructure.

                               House bill

       Section 202 of H.R. 3373 would require VA's Education 
     Service to be located in Washington, D.C.

                              Senate bill

       The Senate bill contains no comparable provisions.

                          Compromise agreement

       Section 509 would prohibit the VA from expending any 
     appropriated funds to move VA's Education Service from its 
     current location in Washington, DC prior to December 31, 
     1997.

                        Title VI--Other Matters


                homeless veterans' reintegration project

                              Current law

       The Department of Labor administers the Homeless Veterans' 
     Reintegration Project (HVRP) which is designed to help 
     indigent and homeless veterans return to society as 
     productive citizens. Veterans are estimated to account for 
     one-third of the adult male homeless population. Aided by 
     community-based organizations, the program places homeless 
     veterans in jobs. In the past, the program had been funded at 
     $5 million per year, but in fiscal year 1996, HVRP did not 
     receive an annual appropriation. Rather, the Appropriations 
     Committee urged the Secretary of Labor to fund the program 
     from a discretionary spending account. Public Law 103-446 
     indicated the sense of Congress that organizations dedicated 
     to serving homeless veterans should receive a share of 
     federal funds devoted to the homeless in a proportion roughly 
     equal to the percentage of veterans among the general 
     homeless population.

                               House bill

       Section 206 of H.R. 3673 would authorize appropriations to 
     the program at $10,000,000 per year for fiscal years 1997 
     through 1999.

                              Senate bill

       Section 310 of S. 1711 would authorize appropriations to 
     the program at $10,000,000 per year for fiscal years 1997 and 
     1998.

                          Compromise agreement

       Section 601 follows the Senate bill.


           repair and long-term maintenance of war memorials

                              Current law

       Under title 36, United States Code, the American Battle 
     Monuments Commission (ABMC) is not authorized to accept 
     monetary donations for the maintenance of overseas memorials 
     for which ABMC has accepted responsibility from private 
     entities.

                               House bill

       Section 301 of H.R. 3673 would authorize the ABMC to accept 
     monetary donations for the maintenance of overseas memorials 
     determined by the ABMC to be of sufficient importance to 
     warrant long term Federal responsibility.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       Section 602 follows the House bill except that ABMC may not 
     accept monetary donations until it adopts reporting and 
     accounting systems.

             Title VII--Commission on Transition Assistance


    commission on service members and veterans transition assistance

                              Current law

       There is no provision in current law relating to the 
     establishment of a commission to evaluate the programs of the 
     Federal Government that assist members of the Armed Forces 
     and veterans in readjusting to civilian life.

                               House bill

       The House bill contains no provision relating to this 
     matter.

                              Senate bill

       Title I of S. 1711 would establish a Commission on Service 
     Members and Veterans Transition Assistance to evaluate the 
     programs of the Federal Government that assist members of the 
     Armed Forces and veterans in readjusting to civilian life. 
     The Commission would review the efficacy and appropriateness 
     of such existing programs.

                          Compromise agreement

       Title VII follows the Senate bill but clarifies the duties 
     of both Commission panels regarding transition and veterans 
     benefits programs, and makes other perfecting amendments.


            additional matters: clear and unmistakable error

                              Current law

       Under 38 C.F.R. 3.105(a), decisions made by VA regional 
     offices are subject to review on the grounds of clear and 
     unmistakable error. Decisions made by the Board of Veterans' 
     Appeals are not subject to this standard of review by law or 
     regulation.

                               House bill

       H.R. 1483 would codify this regulation as it applies to VA 
     regional office decisions and extend the principle underlying 
     it to Board decisions.

                              Senate bill

       The Senate bill contains no comparable provision.

[[Page S11784]]

                          Compromise agreement

       The Compromise Agreement contains no provision relating to 
     this matter.


    presumption that bronciolo-alveolar cancer is service-connected

                              Current law

       Section 1112(c) lists certain diseases that are presumed to 
     be service-connected in radiation exposed veterans. Veterans 
     diagnosed with such diseases are eligible for compensation 
     benefits.

                               House bill

       Section 101 of H.R. 3673 would add bronchiolo-alveolar 
     carcinoma, a radiation-related cancer of the lung, to the 
     list of presumptive service-connected diseases which manifest 
     in radiation exposed veterans.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       The Compromise Agreement contains no provision relating to 
     this matter.


 presumption of permanent/total disability if a veteran is 65 years of 
                       age and in a nursing home

                              Current law

       Under section 1502(a), a person is considered to be 
     permanently and totally disabled if such a person is 
     unemployable as a result of a disability which is reasonably 
     certain to continue throughout the life of the person. A 
     person is also considered to be permanently and totally 
     disabled if suffering from any disability which renders it 
     impossible for the average person to be gainfully employed 
     throughout the person's life. The Secretary may also make a 
     determination that any disease or disorder renders a person 
     permanently and totally disabled.

                               House bill

       Section 102 of H.R. 3673 would provide a presumption of 
     permanent and total disability for veteran nursing home 
     patients over the age of 65.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       The Compromise Agreement contains no provision relating to 
     this matter.


               medical qualifications for flight training

                              Current law

       Sections 3034(d)(2) and 3241(b)(2) of title 38 and section 
     16136(c) of title 10 authorizes education benefits to a 
     veteran enrolled in a course of flight instruction provided a 
     commercial pilot medical certificate is maintained throughout 
     flight training. If VA later discovers that the veteran's 
     medical certification has lapsed during training, an 
     overpayment may be created.

                               House bill

       Section 203 of H.R. 3673 would authorize payment of 
     educational benefits for flight training provided the veteran 
     meets the medical requirements for a commercial pilot's 
     certificate at the beginning of training and within 60 days 
     after completion of training.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       The Compromise Agreement contains no provision relating to 
     this matter.


           increase in montogmery gi bill--active duty rates

                              Current law

       Section 3015(b)(1) authorizes the Secretary to award basic 
     monthly education benefits of $416.62 for full-time education 
     training and $338.51 for two-year enlistees.

                               House bill

       Section 102 of H.R. 3674 would increase the basic monthly 
     education benefit for full-time education training and two-
     year enlistees by $5 to $421.62 and $343.51, respectively.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       The Compromise Agreement follows the Senate bill.


                    increase in automobile allowance

                              Current law

       Section 3902(a) authorizes the Secretary to make a one-time 
     grant of $5,500 toward the purchase of an automobile to 
     severely disabled veterans if their disability is the result 
     of an injury incurred or disease contracted in or aggravated 
     by military service.

                               House bill

       Section 203 of H.R. 3674 would authorize the Secretary to 
     increase the automobile allowable from $5,500 to $6,500.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       The Compromise Agreement contains no provision relating to 
     this matter.


               court of veterans appeals pro bono program

                              Current law

       There is no provision in current law which relates to legal 
     assistance for financially needy veterans in connection with 
     Court of Veterans Appeals (the Court) proceedings. In fiscal 
     years 1992 through 1995, a discrete line-item appropriation 
     was included in the Court's budget and designated for 
     transfer to the Pro Bono Program's administrator, the Legal 
     Services Corporation. In fiscal year 1996, the Court's 
     operating funds were appropriated through successive 
     continuing resolutions which did not include such a discrete 
     line-item appropriation.

                               House bill

       Section 204 of H.R. 3674 would fund the Pro Bono Program 
     for six years at $700,000 per year, with an increase of three 
     percent per year. The three percent per year increase would 
     begin in fiscal year 1998. Section 204 would fund the Program 
     through VA's Compensation and Pension account, based on 
     savings realized as a result of the reversal of the Davenport 
     decision pursuant to section 101 of the Compromise Agreement. 
     This amount would be reduced during each of the six years by 
     any appropriation enacted for operation of the Program.

                              Senate bill

       The Senate bill contains no comparable provision.

                          Compromise agreement

       The Compromise Agreement contains no provision relating to 
     this matter.

                                     S. 1711 AS AMENDED (PAY-GO PROVISIONS)                                     
----------------------------------------------------------------------------------------------------------------
                                                                   1997    1998    1999    2000    2001    2002 
----------------------------------------------------------------------------------------------------------------
Sec. 101: Budget authority                                           -20     -39     -56     -56     -56     -57
    Outlays.....................................................     -20     -39     -56     -56     -56     -57
Sec. 102: Budget authority                                             1       1       1       1       1       1
    Outlays.....................................................       1       1       1       1       1       1
Sec. 103: Budget authority                                             *       *       *       *       *       *
    Outlays.....................................................       *       *       *       *       *       *
Sec. 104: Budget authority                                             *       *       *       *       *       *
    Outlays.....................................................       *       *       *       *       *       *
Sec. 105: Budget authority                                             *       *       *       *       *       *
    Outlays.....................................................       *       *       *       *       *       *
Sec. 106: Budget authority                                             5       2       2       3       3       3
    Outlays.....................................................       5       2       2       3       3       3
Sec. 107: Budget authority                                            -4       4       5       4       3       2
    Outlays.....................................................      -4       4       5       4       3       2
Sec. 201: Budget authority                                            -4      -1       0       0       0       0
    Outlays.....................................................      -4      -1       0       0       0       0
Sec. 202: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 211: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 212: Budget authority                                             *       *       *       *       *       *
    Outlays.....................................................       *       *       *       *       *       *
Sec. 213: Budget authority                                             *       *       *       *       *       *
    Outlays.....................................................       *       *       *       *       *       *
Sec. 301: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 302: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 303: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 311: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 312: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 313: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 401: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 402: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 403: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 404: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 405: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 406: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 501:                                                                                                       
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 502: Budget authority                                            -1      -1      -1      -1      -1      -1
    Outlays.....................................................      -1      -1      -1      -1      -1      -1
Sec. 503: Budget authority                                             *       *       *       *       *       *
    Outlays.....................................................       *       *       *       *       *       *
Sec. 504: Budget authority                                             9       9       9      10      10      11
    Outlays.....................................................       7       9       9      10      10      11
Sec. 505: Budget authority                                             *       *       *       *       *       *
    Outlays.....................................................       *       *       *       *       *       *
Sec. 506: Budget authority                                            14      14      16      16      16      16
    Outlays.....................................................      13      14      16      17      14      16
Sec. 507: Budget authority                                             3       3       3       3       3       3
    Outlays.....................................................       3       3       3       3       3       3
Sec. 508: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 509: Budget authority                                             0       0       0       0       0       0
    Outlays.....................................................       0       0       0       0       0       0
Sec. 510: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 601: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 602: Budget authority                                             *       *       *       *       *       *
    Outlays.....................................................       *       *       *       *       *       *
Sec. 701: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 702: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 703: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 704: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 705: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 706: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 707: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Sec. 708: Budget authority                                                                                      
(5) Discretionary                                                                                               
    Outlays.....................................................       *       *       *       *       *       *
Total:                                                                                                          
    Budget authority............................................       3      -8     -21     -20     -21     -22
    Outlays.....................................................       0      -8     -21     -19     -23     -22
----------------------------------------------------------------------------------------------------------------

  Mr. ROCKEFELLER. Mr. President, as the Ranking Minority Member of the 
Committee on Veterans' Affairs, I am enormously pleased that the Senate 
is considering S. 1711, a bill that would make amendments to a number 
of veterans benefits and services. I urge my colleagues to give their 
unanimous support to this measure as it will be amended with a final 
compromise developed by the two Veterans' Affairs Committees.
  Mr. President, because a description of all of the provisions of this 
measure--which I will refer to as the ``compromise agreement''--are set 
forth in the explanatory statement which Senator Simpson will place in 
the Record, I will just discuss some of the issues which are of 
particular interest to me. The explanatory statement was developed in 
cooperation with the House Committee on Veterans' Affairs and

[[Page S11785]]

that Committee's Chairman, Bob Stump, will insert the same explanatory 
statement in the Record when the House considers this measure.


                   Overturning the Davenport Decision

  Mr. President, section 101 of the compromise agreement amends various 
provisions of chapter 31 of title 38, United States Code, to 
effectively reverse the results of the decision of the U.S. Court of 
Veterans Appeals in Davenport v. Brown, 7 Vet. App. 476 (1995).
  In the Davenport decision, the Court invalidated VA regulations 
relating to eligibility for VA vocational rehabilitation benefits, 
holding that the VA regulations, which required the showing of a 
connection between a veteran's service-connected disability and the 
veteran's employment handicap, were not consistent with the underlying 
law.
  Because the facts of the case--in terms of the background of the 
veteran claimant, his disability, the apparent lack of any employment 
handicap related to that disability, and the vocational rehabilitation 
benefit he sought--were so egregious and because of the potential 
results of the Court's decision on other claimants for vocational 
rehabilitation benefits, many seemed to challenge the validity of the 
Court's action.
  While I am fully supportive of the provision in the compromise 
agreement which will reverse the result of the decision, I think it is 
vital that all understand that the Court's decision was proper and 
completely correct. The Court was not ruling on the merits of the 
veteran claimant's disability or on the veteran's need for vocational 
rehabilitation services. Rather, the Court was ruling on the narrow, 
legal question--was VA's regulation which was being challenged 
authorized by the underlying statutory scheme.
  Mr. President, reviewing the validity of VA regulations is just one 
of the vital functions for which the Court was established, one that 
the Court carries out very well. Rather than expressing any concern 
about the Court's decision in the Davenport case, we should applaud the 
Court for its action in ruling that VA had overstepped its legal 
authority in issuing the regulation in question. To the extent there 
was a problem in the law that the veteran in that case sought to 
exploit--and there was--the fault lies with the Congress for our 
failure to have included the requirement that there be a connection 
between a veteran's disability and employment handicap when we revised 
chapter 31 in 1980 in Public Law 96-466.


                Conversion of Certain VA Life Insurance

  Mr. President, I am very pleased that the compromise agreement 
contains a provision, in section 403, which would permit individuals 
covered by either of two VA insurance programs--SGLI, Servicemembers' 
Group Life Insurance, and VGLI, Veterans' Group Life Insurance--to 
convert their policies to commercial policies at any time, rather than, 
as under current law, being unable to convert a SGLI policy to anything 
other than a VGLI policy upon leaving active duty and then having to 
wait five years after leaving service to convert a VGLI policy to a 
commercial policy.
  There are numerous advantages to this change but one of the key 
ones--and the reason I highlight this provision--is the opportunity it 
will afford an individual with a terminal illnesses to convert his or 
her SGLI or VGLI policy, which can not otherwise be converted prior to 
death, to a commercial policy. The commercial policy would then be 
available for conversion to cash through one of two means--
acceleration, in which an insured collects on an insurance policy prior 
to death, or the viatication process, in which an insured sells the 
policy to a viatical agent who collects at the time of the insured's 
death.


         Extension of Veterans' Claims Adjudication Commission

  Mr. President, as one of the authors of the legislation, enacted in 
Public Law 103-446, which established the Veterans' Claims Adjudication 
Commission, and as one of the Commission's major proponents, I am 
delighted that the compromise agreement, in section 503, contains a 
provision which extends the Commission through the end of this year so 
as to enable it to complete its work. The preliminary report, submitted 
by the Commission earlier this year, showed the depth and breadth of 
the Commission's work and I look forward with anticipation to the 
Commission's final report.


        Extension of Period of Vietnam Era for Certain Veterans

  Mr. President, for purposes of veterans benefits, the ``Vietnam era'' 
is defined in title 38 as the period beginning on August 5, 1964, and 
ending on May 7, 1975. The starting date is tied to the incident in the 
Gulf of Tonkin which led to the adoption of the Tonkin Gulf Resolution 
on August 7. However, prior to that time, U.S. forces had been serving 
in Vietnam for a number of years. Under current law, any individual who 
served in Vietnam but who left active duty prior to August 1964 is not 
considered a Vietnam era veteran.

  An effort has been underway in the Senate for a number of years, 
dating back to the early 1980's, to amend title 38 to provide for an 
earlier starting date for the Vietnam era for those veterans who served 
in Vietnam. However, despite Senate passage on at least four prior 
occasions, the House has never agreed to this change.
  Finally, Mr. President, we have, this year, reached agreement with 
our colleagues in the House and the compromise agreement, in section 
505, would amend the definition to provide that the Vietnam era 
includes the period between February 28, 1961, and August 4, 1964, for 
those who served in Vietnam during that period. The date of February 
28, 1961, was chosen because that is the approximate date on which 
American military advisers began to accompany their Vietnamese 
counterparts on military missions and, as such, is used as the starting 
date for the Vietnam conflict in a number of other contexts.


                 Increase in Amount of Accrued Benefits

  Mr. President, as my colleagues know, the VA claims adjudication 
system is under serious stress and there are frequently great delays in 
the processing of claims. With these significant delays, there often 
are awards of significant back due benefits, dating back to when a 
claim was first filed, when claims are finally awarded. However, under 
current law, when a veteran dies while pursuing a claim for benefits, 
if the claim is ultimately awarded, the veteran's survivors are limited 
to so-called accrued benefits, which are limited to a maximum of one 
year's worth of benefits. This result applies, regardless of what the 
size of the award would have been had the veteran been able to pursue 
the claim to its conclusion. This result frequently deprives survivors 
of significant benefits.
  Mr. President, I think this result is wrong and should be corrected. 
My preference is to eliminate the limit on accrued benefits totally. 
However, there is a need for more information on such an effort, 
especially the cost implications, before it can move forward. As a 
first step, therefore, I am pleased that the compromise agreement 
contains, in section 507, a provision which extends the period of 
accrued benefits from 1 to 2 years.
  Mr. President, in closing, I acknowledge the work of my colleagues in 
the House, Chairman Bob Stump and the ranking minority member, Sonny 
Montgomery, and our committee's chairman, Senator Simpson, in 
developing the comprehensive legislation.
  Mr. President, I thank the staff who have worked extremely long and 
hard on this compromise--Jill Cochran, Beth Kiker, Pat Ryan, Mike 
Brinck, Kingston Smith, and others on the House committee, and Bill 
Brew, Jim Gottlieb, Bill Tuerk, Chris Yoder, and Tom Harvey with the 
Senate committee. I also thank Bob 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. NICKLES. Mr. President, I ask unanimous consent that the 
amendment be agreed to, the committee amendment, as amended, be agreed 
to, the bill be deemed read a third time, and passed, and the motion to 
reconsider be laid upon the table, and any statements relating to the 
bill appear at the appropriate place in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 5418) was agreed to.
  The committee amendment, as amended, was agreed to.
  The bill (S. 1711), as amended, was deemed read the third time and 
passed, as follows:

[[Page S11786]]

                                S. 1711

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Veterans' 
     Benefits Improvements Act of 1996''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

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

                      TITLE I--EDUCATION BENEFITS

Sec. 101. Employment handicap for which an individual may receive 
              training and rehabilitation assistance.
Sec. 102. Permanent authority for alternative teacher certification 
              programs.
Sec. 103. Period of operation for approval.
Sec. 104. Elimination of distinction between open circuit TV and 
              independent study.
Sec. 105. Cooperative programs.
Sec. 106. Enrollment of certain VEAP participants in Montgomery GI 
              Bill. 
Sec. 107. Montgomery GI Bill eligibility for certain active duty 
              members of Army and Air National Guard. 

                 TITLE II--HOUSING AND MEMORIAL AFFAIRS

                          Subtitle A--Housing

Sec. 201. Extension of enhanced loan asset sale authority.
Sec. 202. Direct loans to refinance loans under Native American veteran 
              housing loan pilot program.

                      Subtitle B--Memorial Affairs

Sec. 211. Clarification of eligibility of minors for burial in national 
              cemeteries.
Sec. 212. Burial benefits for certain veterans who die in State nursing 
              homes.
Sec. 213. Outer burial receptacles. 

                   TITLE III--EMPLOYMENT AND TRAINING

             Subtitle A--Veterans' Employment and Training

Sec. 301. Regional Administrator.
Sec. 302. Support personnel for Directors of Veterans' Employment and 
              Training.
Sec. 303. Pilot program to integrate and streamline functions of local 
              veterans' employment representatives.

  Subtitle B--Technical Amendments Relating to the Uniformed Services 
             Employment and Reemployment Rights Act of 1994

Sec. 311. Amendments to chapter 43 of title 38, United States Code.
Sec. 312. Amendments to transition rules and effective dates.
Sec. 313. Effective dates.

               TITLE IV--VETERANS LIFE INSURANCE PROGRAMS

Sec. 401. Short title.
Sec. 402. Merger of Retired Reserve Servicemembers' Group Life 
              Insurance and Veterans' Group Life Insurance and 
              extension of Veterans' Group Life Insurance to members of 
              the Ready Reserve.
Sec. 403. Conversion of SGLI and VGLI to commercial life insurance 
              policy.
Sec. 404. Information to be provided members concerning automatic 
              maximum coverage of $200,000 under Servicemen's Group 
              Life Insurance.
Sec. 405. Renaming of Servicemen's Group Life Insurance program.
Sec. 406. Technical amendment.

     TITLE V--DEPARTMENT OF VETERANS AFFAIRS ADMINISTRATIVE MATTERS

Sec. 501. Revision of authority relating to Centers for Minority 
              Veterans and Women Veterans. 
Sec. 502. Limitation on clothing allowance for incarcerated veterans.
Sec. 503. Extension of Veterans' Claims Adjudication Commission.
Sec. 504. Pilot program for use of contract physicians for disability 
              examinations.
Sec. 505. Expansion of period of Vietnam era for certain veterans. 
Sec. 506. Payment of benefit to surviving spouse for month in which 
              veteran dies.
Sec. 507. Increase in period for which accrued benefits payable.
Sec. 508. Appointment of veterans service organizations as claimants' 
              representatives.
Sec. 509. Provision of copies of Board of Veterans' Appeals decisions.
Sec. 510. Limitation on relocation or reduction in staffing of certain 
              elements of the Education Service of the Veterans 
              Benefits Administration.

                        TITLE VI--OTHER MATTERS

Sec. 601. Extension of certain authorities for services for homeless 
              veterans.
Sec. 602. Repair and long-term maintenance of war memorials.

    TITLE VII--COMMISSION ON SERVICEMEMBERS AND VETERANS TRANSITION 
                               ASSISTANCE

Sec. 701. Establishment of Commission.
Sec. 702. Duties of Commission.
Sec. 703. Powers of Commission.
Sec. 704. Miscellaneous administrative provisions.
Sec. 705. Commission personnel matters.
Sec. 706. Termination of Commission.
Sec. 707. Definitions.
Sec. 708. Funding.

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

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

     SEC. 101. EMPLOYMENT HANDICAP FOR WHICH AN INDIVIDUAL MAY 
                   RECEIVE TRAINING AND REHABILITATION ASSISTANCE.

       (a) Definitions.--Section 3101 is amended--
       (1) in paragraph (1), by inserting ``, resulting in 
     substantial part from a disability described in section 
     3102(1)(A) of this title,'' after ``impairment'';
       (2) in paragraph (6), by inserting ``authorized under 
     section 3120 of this title'' after ``assistance''; and
       (3) in paragraph (7), by inserting ``, resulting in 
     substantial part from a service-connected disability rated at 
     10 percent or more,'' after ``impairment''.
       (b) Basic Entitlement.--Section 3102 is amended--
       (1) in paragraph (1)(A)(i), by striking out ``which is'' 
     and all that follows through ``chapter 11 of this title and'' 
     and inserting in lieu thereof ``rated at 20 percent or 
     more'';
       (2) in paragraph (2)(A), by striking out ``which is'' and 
     all that follows through ``chapter 11 of this title and'' and 
     inserting in lieu thereof ``rated at 10 percent''; and
       (3) by amending paragraph (2)(B) to read as follows:
       ``(B) is determined by the Secretary to be in need of 
     rehabilitation because of a serious employment handicap.''.
       (c) Periods of Eligibility.--Section 3103 is amended--
       (1) in subsection (b)(3), by striking out ``described in 
     section 3102(1)(A)(i) of this title'' and inserting in lieu 
     thereof ``rated at 10 percent or more'';
       (2) in subsection (c)--
       (A) in the matter preceding paragraph (1), by striking out 
     ``particular'' and inserting in lieu thereof ``current''; and
       (B) in paragraph (2), by striking out ``veteran's 
     employment'' and inserting in lieu thereof ``veteran's 
     current employment''; and
       (3) in subsection (d), by striking out ``under this 
     chapter'' and inserting in lieu thereof ``in accordance with 
     the provisions of section 3120 of this title''.
       (d) Scope of Services and Assistance.--Section 3104 is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking out ``such veteran's disability or 
     disabilities cause'' and inserting in lieu thereof ``the 
     veteran has an employment handicap or''; and
       (ii) by inserting ``reasonably'' after ``goal is'';
       (B) in paragraph (7)(A)--
       (i) by striking out ``(i)''; and
       (ii) by striking out ``, and (ii)'' and all that follows 
     through ``such Act''; and
       (C) in paragraph (12), by striking out ``For the most 
     severely disabled veterans requiring'' and inserting in lieu 
     thereof ``For veterans with the most severe service-connected 
     disabilities who require''; and
       (2) by striking out subsection (b) and redesignating 
     subsection (c) as subsection (b).
       (e) Duration of Rehabilitation Programs.--Paragraph (1) of 
     section 3105(c) is amended by striking out ``veteran's 
     employment'' and inserting in lieu thereof ``veteran's 
     current employment''.
       (f) Initial and Extended Evaluations; Determinations 
     Regarding Serious Employment Handicap.--(1) Section 3106 is 
     amended--
       (A) in subsection (a), by striking out ``described in 
     clause (i) or (ii) of section 3102(1)(A) of this title'' and 
     inserting in lieu thereof ``rated at 10 percent or more'';
       (B) in subsection (b), by striking out ``counseling in 
     accordance with'';
       (C) in subsection (c), by striking out ``with extended'' 
     and inserting in lieu thereof ``with an extended''; and
       (D) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively, and inserting after subsection (c) 
     the following new subsection:
       ``(d) In any case in which the Secretary has determined 
     that a veteran has a serious employment handicap and also 
     determines, following such initial and any such extended 
     evaluation, that achievement of a vocational goal currently 
     is not reasonably feasible, the Secretary shall determine 
     whether the veteran is capable of participating in a program 
     of independent living services and assistance under section 
     3120 of this title.''.
       (2) Chapter 31 is amended--
       (A) in section 3107(c)(2), by striking out ``3106(e)'' and 
     inserting in lieu thereof ``3106(f)'';
       (B) in section 3109, by striking out ``3106(d)'' and 
     inserting in lieu thereof ``3106(e)'';
       (C) in section 3118(c), by striking out ``3106(e)'' and 
     inserting in lieu thereof ``3106(f)''; and
       (D) in section 3120(b), by striking out ``3106(d)'' and 
     inserting in lieu thereof ``3106(d) or (e)''.
       (g) Allowances.--Section 3108 is amended--

[[Page S11787]]

       (1) in subsection (a)(2), by striking out ``following the 
     conclusion of such pursuit'' and inserting in lieu thereof 
     ``while satisfactorily following a program of employment 
     services provided under section 3104(a)(5) of this title''; 
     and
       (2) in subsection (f)(1)--
       (A) in subparagraph (A)--
       (i) by inserting ``eligible for and'' after ``veteran is'';
       (ii) by striking out ``chapter 30 or 34'' and inserting in 
     lieu thereof ``chapter 30''; and
       (iii) by striking out ``either chapter 30 or chapter 34'' 
     and inserting in lieu thereof ``chapter 30''; and
       (B) in subparagraph (B), by striking out ``chapter 30 or 
     34'' and inserting in lieu thereof ``chapter 30''.
       (h) Employment Assistance.--Paragraph (1) of section 
     3117(a) is amended by inserting ``rated at 10 percent or 
     more'' after ``disability''.
       (i) Program of Independent Living Services and 
     Assistance.--Section 3120 is amended--
       (1) in subsection (b), by striking out ``service-connected 
     disability described in section 3102(1)(A)'' and inserting in 
     lieu thereof ``serious employment handicap resulting in 
     substantial part from a service-connected disability 
     described in section 3102(1)(A)(i)''; and
       (2) in subsection (d), by striking out ``and (b)''.
       (j) Effective Date.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall take effect on 
     the date of the enactment of this Act.
       (2) The amendments made by subsection (a) (other than 
     paragraph (2)), subsection (d) (other than subparagraphs (A) 
     and (B) of paragraph (1)), and subsection (i) shall only 
     apply with respect to claims of eligibility or entitlement to 
     services and assistance (including claims for extension of 
     such services and assistance) under chapter 31 of title 38, 
     United States Code, received by the Secretary of Veterans 
     Affairs on or after the date of the enactment of this Act, 
     including those claims based on original applications, and 
     applications seeking to reopen, revise, reconsider, or 
     otherwise adjudicate or readjudicate on any basis claims for 
     services and assistance under such chapter.

     SEC. 102. PERMANENT AUTHORITY FOR ALTERNATIVE TEACHER 
                   CERTIFICATION PROGRAMS.

       Subsection (c) of section 3452 is amended by striking out 
     ``For the period ending on September 30, 1996, such'' and 
     inserting in lieu thereof ``Such''.

     SEC. 103. PERIOD OF OPERATION FOR APPROVAL.

       (a) In General.--(1) Chapter 36 is amended--
       (A) by striking out section 3689; and
       (B) by striking out the item relating to section 3689 in 
     the table of sections at the beginning of such chapter.
       (2) Subparagraph (C) of section 3680A(d)(2) is amended by 
     striking out ``3689(b)(6) of this title'' and inserting in 
     lieu thereof ``subsection (g)''.
       (b) Disapproval of Enrollment in Certain Courses.--Section 
     3680A is amended by adding after subsection (d) the following 
     new subsections:
       ``(e) The Secretary may not approve the enrollment of an 
     eligible veteran in a course not leading to a standard 
     college degree offered by a proprietary profit or proprietary 
     nonprofit educational institution if--
       ``(1) the educational institution has been operating for 
     less than two years;
       ``(2) the course is offered at a branch of the educational 
     institution and the branch has been operating for less than 
     two years; or
       ``(3) following either a change in ownership or a complete 
     move outside its original general locality, the educational 
     institution does not retain substantially the same faculty, 
     student body, and courses as before the change in ownership 
     or the move outside the general locality (as determined in 
     accordance with regulations the Secretary shall prescribe) 
     unless the educational institution following such change or 
     move has been in operation for at least two years.
       ``(f) The Secretary may not approve the enrollment of an 
     eligible veteran in a course as a part of a program of 
     education offered by an educational institution if the course 
     is provided under contract by another educational institution 
     or entity and--
       ``(1) the Secretary would be barred under subsection (e) 
     from approving the enrollment of an eligible veteran in the 
     course of the educational institution or entity providing the 
     course under contract; or
       ``(2) the educational institution or entity providing the 
     course under contract has not obtained approval for the 
     course under this chapter.
       ``(g) Notwithstanding subsections (e) and (f), the 
     Secretary may approve the enrollment of an eligible veteran 
     in a course approved under this chapter if the course is 
     offered by an educational institution under contract with the 
     Department of Defense or the Department of Transportation and 
     is given on or immediately adjacent to a military base, Coast 
     Guard station, National Guard facility, or facility of the 
     Selected Reserve.''.
       (c) Approval of Accredited Courses.--Subsection (b) of 
     section 3675 is amended to read as follows:
       ``(b) As a condition of approval under this section, the 
     State approving agency must find the following:
       ``(1) The educational institution keeps adequate records, 
     as prescribed by the State approving agency, to show the 
     progress and grades of the eligible person or veteran and to 
     show that satisfactory standards relating to progress and 
     conduct are enforced.
       ``(2) The educational institution maintains a written 
     record of the previous education and training of the eligible 
     person or veteran that clearly indicates that appropriate 
     credit has been given by the educational institution for 
     previous education and training, with the training period 
     shortened proportionately.
       ``(3) The educational institution and its approved courses 
     meet the criteria of paragraphs (1), (2), and (3) of section 
     3676(c) of this title.''.

     SEC. 104. ELIMINATION OF DISTINCTION BETWEEN OPEN CIRCUIT TV 
                   AND INDEPENDENT STUDY.

       (a) Veterans' Educational Assistance Program.--Subsection 
     (f) of section 3482 is amended by striking out ``in part''.
       (b) Survivors' and Dependents' Educational Assistance.--
     Section 3523 is amended--
       (1) in subsection (a)(4), by inserting ``(including open 
     circuit television)'' after ``independent study program'' the 
     second place it appears; and
       (2) in subsection (c), by striking out ``radio'' and all 
     that follows through the end and inserting in lieu thereof 
     ``radio.''.
       (c) Administration of Educational Benefits.--Subsection (c) 
     of section 3680A is amended by striking out ``radio'' and all 
     that follows through the end and inserting in lieu thereof 
     ``radio.''.

     SEC. 105. COOPERATIVE PROGRAMS.

       (a) Chapter 30.--Section 3032 is amended by striking out 
     subsection (d) and redesignating subsections (e) and (f) as 
     subsections (d) and (e), respectively.
       (b) Chapter 32.--Section 3231 is amended by striking out 
     subsection (d) and redesignating subsections (e) and (f) as 
     subsections (d) and (e), respectively.
       (c) Chapter 35.--Subsection (b) of section 3532 is amended 
     by striking out ``$327'' and inserting in lieu thereof 
     ``$404''.
       (d) Chapter 1606.--Section 16131 of title 10, United States 
     Code, is amended--
       (1) by striking out subsection (e) and redesignating 
     subsections (f), (g), (h), (i), and (j) as subsections (e), 
     (f), (g), (h), and (i), respectively; and
       (2) in subsection (b)(1), by striking out ``(g)'' and 
     inserting in lieu thereof ``(f)''.

     SEC. 106. ENROLLMENT OF CERTAIN VEAP PARTICIPANTS IN 
                   MONTGOMERY GI BILL.

       (a) In General.--Subchapter II of chapter 30 is amended by 
     inserting after section 3018B the following new section:

     ``Sec. 3018C. Opportunity for certain VEAP participants to 
       enroll

       ``(a) Notwithstanding any other provision of law, an 
     individual who--
       ``(1) is a participant on the date of the enactment of the 
     Veterans' Benefits Improvements Act of 1996 in the 
     educational benefits program provided by chapter 32 of this 
     title;
       ``(2) is serving on active duty (excluding the periods 
     referred to in section 3202(1)(C) of this title) on such 
     date;
       ``(3) before applying for benefits under this section, has 
     completed the requirements of a secondary school diploma (or 
     equivalency certificate) or has successfully completed the 
     equivalent of 12 semester hours in a program of education 
     leading to a standard college degree;
       ``(4) if discharged or released from active duty during the 
     one-year period specified in paragraph (5), is discharged or 
     released therefrom with an honorable discharge; and
       ``(5) during the one-year period beginning on the date of 
     the enactment of the Veterans' Benefits Improvements Act of 
     1996, makes an irrevocable election to receive benefits under 
     this section in lieu of benefits under chapter 32 of this 
     title, pursuant to procedures which the Secretary of each 
     military department shall provide in accordance with 
     regulations prescribed by the Secretary of Defense for the 
     purpose of carrying out this section or which the Secretary 
     of Transportation shall provide for such purpose with respect 
     to the Coast Guard when it is not operating as a service in 
     the Navy;

     may elect to become entitled to basic educational assistance 
     under this chapter.
       ``(b) With respect to an individual who makes an election 
     under subsection (a) to become entitled to basic education 
     assistance under this chapter--
       ``(1) the basic pay of the individual shall be reduced (in 
     a manner determined by the Secretary of Defense) until the 
     total amount by which such basic pay is reduced is $1,200; or
       ``(2) to the extent that basic pay is not so reduced before 
     the individual's discharge or release from active duty as 
     specified in subsection (a)(4), the Secretary shall collect 
     from the individual an amount equal to the difference between 
     $1,200 and the total amount of reductions under paragraph 
     (1), which shall be paid into the Treasury of the United 
     States as miscellaneous receipts.
       ``(c)(1) Except as provided in paragraph (3), an individual 
     who is enrolled in the educational benefits program provided 
     by chapter 32 of this title and who makes the election 
     described in subsection (a)(5) shall be disenrolled from such 
     chapter 32 program as of the date of such election.
       ``(2) For each individual who is disenrolled from such 
     program, the Secretary shall refund--
       ``(A) to the individual, as provided in section 3223(b) of 
     this title and subject to subsection (b)(2) of this section, 
     the unused contributions made by the individual to the

[[Page S11788]]

     Post-Vietnam Era Veterans Education Account established 
     pursuant to section 3222(a) of this title; and
       ``(B) to the Secretary of Defense the unused contributions 
     (other than contributions made under section 3222(c) of this 
     title) made by such Secretary to the Account on behalf of 
     such individual.
       ``(3) Any contribution made by the Secretary of Defense to 
     the Post-Vietnam Era Veterans Education Account pursuant to 
     subsection (c) of section 3222 of this title on behalf of any 
     individual referred to in paragraph (1) shall remain in such 
     account to make payments of benefits to such individual under 
     section 3015(f) of this title.
       ``(d) The procedures provided in regulations referred to in 
     subsection (a) shall provide for notice of the requirements 
     of subparagraphs (B), (C), and (D) of section 3011(a)(3) and 
     of subparagraph (A) of section 3012(a)(3) of this title. 
     Receipt of such notice shall be acknowledged in writing.''.
       (b) Conforming Amendments.--(1) The table of sections at 
     the beginning of chapter 30 is amended by inserting after the 
     item relating to section 3018B the following new item:

``3018C. Opportunity for certain VEAP participants to enroll.''.

       (2) Subsection (d) of section 3013 is amended by striking 
     out ``or 3018B'' and inserting in lieu thereof ``, 3018B, or 
     3018C''.
       (3) Subsection (f) of section 3015 is amended by inserting 
     ``, 3018B, or 3018C'' after ``section 3018A''.
       (c) Transfer of Educational Assistance Funds.--(1) 
     Subparagraph (B) of section 3232(b)(2) is amended--
       (A) by striking out ``, for the purposes of section 1322(a) 
     of title 31,''; and
       (B) by striking out ``as provided in such section'' and 
     inserting in lieu thereof ``to the Secretary for payments for 
     entitlement earned under subchapter II of chapter 30''.
       (2) Paragraph (1) of section 3035(b) is amended by 
     inserting before the period at the end the following: ``and 
     from transfers from the Post-Vietnam Era Veterans Education 
     Account pursuant to section 3232(b)(2)(B) of this title''.

     SEC. 107. MONTGOMERY GI BILL ELIGIBILITY FOR CERTAIN ACTIVE 
                   DUTY MEMBERS OF ARMY AND AIR NATIONAL GUARD.

       (a) In General.--Paragraph (7) of section 3002 is amended 
     by striking out ``November 29, 1989'' and inserting in lieu 
     thereof ``June 30, 1985''.
       (b) Application.--(1) An individual may only become 
     eligible for benefits under chapter 30 of title 38, United 
     States Code, as a result of the amendment made by subsection 
     (a) by making an election to become entitled to basic 
     educational assistance under such chapter. The election may 
     only be made during the nine-month period beginning on the 
     date of the enactment of this Act and in the manner required 
     by the Secretary of Defense.
       (2) In the case of any individual making an election under 
     paragraph (1)--
       (A) the basic pay of an individual who, while a member of 
     the Armed Forces, makes an election under paragraph (1) shall 
     be reduced (in a manner determined by the Secretary of 
     Defense) until the total amount by which such basic pay is 
     reduced is $1,200; or
       (B) to the extent that basic pay is not so reduced before 
     the individual's discharge or release from active duty, the 
     Secretary of Veterans Affairs shall collect from an 
     individual who makes such an election an amount equal to the 
     difference between $1,200 and the total amount of reductions 
     under subparagraph (A), which amount shall be paid into the 
     Treasury as miscellaneous receipts.
       (3) In the case of any individual making an election under 
     paragraph (1), the 10-year period referred to in section 3031 
     of such title shall begin on the later of--
       (A) the date determined under such section 3031; or
       (B) the date on which the election under paragraph (1) 
     becomes effective.
                 TITLE II--HOUSING AND MEMORIAL AFFAIRS
                          Subtitle A--Housing

     SEC. 201. EXTENSION OF ENHANCED LOAN ASSET SALE AUTHORITY.

       Paragraph (2) of section 3720(h) is amended by striking out 
     ``December 31, 1996'' and inserting in lieu thereof 
     ``December 31, 1997''.

     SEC. 202. DIRECT LOANS TO REFINANCE LOANS UNDER NATIVE 
                   AMERICAN VETERAN HOUSING LOAN PILOT PROGRAM.

       (a) Authority.--Section 3762 is amended--
       (1) by redesignating subsection (h) as subsection (i); and
       (2) by inserting after subsection (g) the following new 
     subsection (h):
       ``(h)(1) The Secretary may make direct loans to Native 
     American veterans in order to enable such veterans to 
     refinance existing loans made under this section.
       ``(2)(A) The Secretary may not make a loan under this 
     subsection unless the loan meets the requirements set forth 
     in subparagraphs (B), (C), and (E) of paragraph (1) of 
     section 3710(e) of this title.
       ``(B) The Secretary may not make a loan under this 
     subsection unless the loan will bear an interest rate at 
     least one percentage point less than the interest rate borne 
     by the loan being refinanced.
       ``(C) Paragraphs (2) and (3) of such section 3710(e) shall 
     apply to any loan made under this subsection, except that for 
     the purposes of this subsection the reference to subsection 
     (a)(8) of section 3710 of this title in such paragraphs (2) 
     and (3) shall be deemed to be a reference to this 
     subsection.''.
       (b) Loan Fee.--Section 3729(a)(2)(E) is amended by striking 
     out ``or 3712(a)(1)(F)'' and inserting in lieu thereof 
     ``3712(a)(1)(F), or 3762(h)''.
                      Subtitle B--Memorial Affairs

     SEC. 211. CLARIFICATION OF ELIGIBILITY OF MINORS FOR BURIAL 
                   IN NATIONAL CEMETERIES.

       Section 2402(5) is amended by inserting after ``minor 
     child'' the following: ``(which for purposes of this chapter 
     includes a child under 21 years of age, or under 23 years of 
     age if pursuing a course of instruction at an approved 
     educational institution)''.

     SEC. 212. BURIAL BENEFITS FOR CERTAIN VETERANS WHO DIE IN 
                   STATE NURSING HOMES.

       Subsection (a) of section 2303 is amended to read as 
     follows:
       ``(a)(1) When a veteran dies in a facility described in 
     paragraph (2), the Secretary shall--
       ``(A) pay the actual cost (not to exceed $300) of the 
     burial and funeral or, within such limits, may make contracts 
     for such services without regard to the laws requiring 
     advertisement for proposals for supplies and services for the 
     Department; and
       ``(B) when such a death occurs in a State, transport the 
     body to the place of burial in the same or any other State.
       ``(2) A facility described in this paragraph is--
       ``(A) a Department facility (as defined in section 1701(4) 
     of this title) to which the deceased was properly admitted 
     for hospital, nursing home, or domiciliary care under section 
     1710 or 1711(a) of this title; or
       ``(B) an institution at which the deceased veteran was, at 
     the time of death, receiving--
       ``(i) hospital care in accordance with section 1703 of this 
     title;
       ``(ii) nursing home care under section 1720 of this title; 
     or
       ``(iii) nursing home care for which payments are made under 
     section 1741 of this title.''.

     SEC. 213. OUTER BURIAL RECEPTACLES.

       (a) In General.--Subsection (d) of section 2306 is 
     amended--
       (1) in paragraph (1), by striking out ``a grave liner'' 
     each place it appears and inserting in lieu thereof ``an 
     outer burial receptacle'';
       (2) in paragraph (2)--
       (A) by striking out ``grave liners'' and inserting in lieu 
     thereof ``outer burial receptacles''; and
       (B) by striking out ``specifications and procedures'' and 
     inserting in lieu thereof ``regulations or procedures''; and
       (3) by adding at the end the following:
       ``(3) Regulations or procedures under paragraph (2) may 
     specify that--
       ``(A) an outer burial receptacle other than a grave liner 
     be provided in lieu of a grave liner at the election of the 
     survivors of the interred veteran; and
       ``(B) if an outer burial receptacle other than a grave 
     liner is provided in lieu of a grave liner upon an election 
     of such survivors, such survivors be required--
       ``(i) to pay the amount by which the cost of the outer 
     burial receptacle exceeds the cost of the grave liner that 
     would otherwise have been provided in the absence of the 
     election; and
       ``(ii) to pay the amount of the administrative costs 
     incurred by the Secretary (or, with respect to Arlington 
     National Cemetery, the Secretary of the Army) in providing 
     the outer burial receptacle in lieu of such grave liner.
       ``(4) Regulations or procedures under paragraph (2) may 
     provide for the use of a voucher system, or other system of 
     reimbursement approved by the Secretary (or, with respect to 
     Arlington National Cemetery, the Secretary of the Army), for 
     payment for outer burial receptacles other than grave liners 
     provided under such regulations or procedures.''.
       (b) Conforming Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 2306. Headstones, markers, and burial receptacles''.

       (2) The table of sections at the beginning of chapter 23 is 
     amended by striking out the item relating to section 2306 and 
     inserting in lieu thereof the following new item:

``2306. Headstones, markers, and burial receptacles.''.
                   TITLE III--EMPLOYMENT AND TRAINING
             Subtitle A--Veterans' Employment and Training

     SEC. 301. REGIONAL ADMINISTRATOR.

       Paragraph (1) of section 4102A(e) is amended by adding at 
     the end the following: ``Each Regional Administrator 
     appointed after the date of the enactment of the Veterans' 
     Benefits Improvements Act of 1996 shall be a veteran.''.

     SEC. 302. SUPPORT PERSONNEL FOR DIRECTORS OF VETERANS' 
                   EMPLOYMENT AND TRAINING.

       Subsection (a) of section 4103 is amended--
       (1) in the first sentence, by striking out ``full-time 
     Federal clerical support'' and inserting in lieu thereof 
     ``full-time Federal clerical or other support personnel''; 
     and
       (2) in the third sentence, by striking out ``Full-time 
     Federal clerical support personnel'' and inserting in lieu 
     thereof ``Full-time Federal clerical or other support 
     personnel''.

[[Page S11789]]

     SEC. 303. PILOT PROGRAM TO INTEGRATE AND STREAMLINE FUNCTIONS 
                   OF LOCAL VETERANS' EMPLOYMENT REPRESENTATIVES.

       (a) Authority To Conduct Pilot Program.--In order to assess 
     the effects on the timeliness and quality of services to 
     veterans resulting from re-focusing the staff resources of 
     local veterans' employment representatives, the Secretary of 
     Labor may conduct a pilot program under which the primary 
     responsibilities of local veterans' employment 
     representatives will be case management and the provision and 
     facilitation of direct employment and training services to 
     veterans.
       (b) Authorities Under Chapter 41.--To implement the pilot 
     program, the Secretary of Labor may suspend or limit 
     application of those provisions of chapter 41 of title 38, 
     United States Code (other than sections 4104(b)(1) and (c)) 
     that pertain to the Local Veterans' Employment Representative 
     Program in States designated by the Secretary under 
     subsection (d), except that the Secretary may use the 
     authority of such chapter, as the Secretary may determine, in 
     conjunction with the authority of this section, to carry out 
     the pilot program. The Secretary may collect such data as the 
     Secretary considers necessary for assessment of the pilot 
     program. The Secretary shall measure and evaluate on a 
     continuing basis the effectiveness of the pilot program in 
     achieving its stated goals in general, and in achieving such 
     goals in relation to their cost, their effect on related 
     programs, and their structure and mechanisms for delivery of 
     services.
       (c) Targeted Veterans.--Within the pilot program, eligible 
     veterans who are among groups most in need of intensive 
     services, including disabled veterans, economically 
     disadvantaged veterans, and veterans separated within the 
     previous four years from active military, naval, or air 
     service shall be given priority for service by local 
     veterans' employment representatives. Priority for the 
     provision of service shall be given first to disabled 
     veterans and then to the other categories of veterans most in 
     need of intensive services in accordance with priorities 
     determined by the Secretary of Labor in consultation with 
     appropriate State labor authorities.
       (d) States Designated.--The pilot program shall be limited 
     to not more than five States to be designated by the 
     Secretary of Labor.
       (e) Reports to Congress.--(1) Not later than one year after 
     the date of the enactment of this Act, the Secretary of Labor 
     shall submit to the Committees on Veterans' Affairs of the 
     Senate and the House of Representatives an interim report 
     describing in detail the development and implementation of 
     the pilot program on a State by State basis.
       (2) Not later than 120 days after the expiration of this 
     section under subsection (h), the Secretary of Labor shall 
     submit to the Committees on Veterans' Affairs of the Senate 
     and the House of Representatives a final report evaluating 
     the results of the pilot program and make recommendations 
     based on the evaluation, which may include legislative 
     recommendations.
       (f) Definitions.--For the purposes of this section:
       (1) The term ``veteran'' has the meaning given such term by 
     section 101(2) of title 38, United States Code.
       (2) The term ``disabled veteran'' has the meaning given 
     such term by section 4211(3) of such title.
       (3) The term ``active military, naval, or air service'' has 
     the meaning given such term by section 101(24) of such title.
       (g) Allocation of Funds.--Any amount otherwise available 
     for fiscal year 1997, 1998, or 1999 to carry out section 
     4102A(b)(5) of title 38, United States Code, with respect to 
     a State designated by the Secretary of Labor pursuant to 
     subsection (d) shall be available to carry out the pilot 
     program during that fiscal year with respect to that State.
       (h) Expiration Date.--The authority to carry out the pilot 
     program under this section shall expire on October 1, 1999.
  Subtitle B--Technical Amendments Relating to the Uniformed Services 
             Employment and Reemployment Rights Act of 1994

     SEC. 311. AMENDMENTS TO CHAPTER 43 OF TITLE 38, UNITED STATES 
                   CODE.

       Chapter 43 is amended as follows:
       (1) Section 4301(a)(2) is amended by striking out ``under 
     honorable conditions''.
       (2) Section 4303(16) is amended by inserting ``national'' 
     before ``emergency''.
       (3) Section 4311 is amended by striking out subsections (b) 
     and (c) and inserting in lieu thereof the following:
       ``(b) An employer may not discriminate in employment 
     against or take any adverse employment action against any 
     person because such person (1) has taken an action to enforce 
     a protection afforded any person under this chapter, (2) has 
     testified or otherwise made a statement in or in connection 
     with any proceeding under this chapter, (3) has assisted or 
     otherwise participated in an investigation under this 
     chapter, or (4) has exercised a right provided for in this 
     chapter. The prohibition in this subsection shall apply with 
     respect to a person regardless of whether that person has 
     performed service in the uniformed services.
       ``(c) An employer shall be considered to have engaged in 
     actions prohibited--
       ``(1) under subsection (a), if the person's membership, 
     application for membership, service, application for service, 
     or obligation for service in the uniformed services is a 
     motivating factor in the employer's action, unless the 
     employer can prove that the action would have been taken in 
     the absence of such membership, application for membership, 
     service, application for service, or obligation for service; 
     or
       ``(2) under subsection (b), if the person's (A) action to 
     enforce a protection afforded any person under this chapter, 
     (B) testimony or making of a statement in or in connection 
     with any proceeding under this chapter, (C) assistance or 
     other participation in an investigation under this chapter, 
     or (D) exercise of a right provided for in this chapter, is a 
     motivating factor in the employer's action, unless the 
     employer can prove that the action would have been taken in 
     the absence of such person's enforcement action, testimony, 
     statement, assistance, participation, or exercise of a right.
       ``(d) The prohibitions in subsections (a) and (b) shall 
     apply to any position of employment, including a position 
     that is described in section 4312(d)(1)(C) of this title.''.
       (4) Section 4312 is amended--
       (A) in subsection (a), by striking out ``who is absent from 
     a position of employment'' and inserting in lieu thereof 
     ``whose absence from a position of employment is 
     necessitated'';
       (B) in subsection (c)--
       (i) by striking out ``section 270'' in paragraph (3) and 
     inserting in lieu thereof ``section 10147''; and
       (ii) in paragraph (4)--

       (I) by striking out ``section 672(a), 672(g), 673, 673b, 
     673c, or 688'' in subparagraph (A) and inserting in lieu 
     thereof ``section 688, 12301(a), 12301(g), 12302, 12304, or 
     12305'';
       (II) by amending subparagraph (B) to read as follows:

       ``(B) ordered to or retained on active duty (other than for 
     training) under any provision of law because of a war or 
     national emergency declared by the President or the Congress, 
     as determined by the Secretary concerned;'';

       (III) by striking out ``section 673b'' in subparagraph (C) 
     and inserting in lieu thereof ``section 12304''; and
       (IV) by striking out ``section 3500 or 8500'' in 
     subparagraph (E) and inserting in lieu thereof ``section 
     12406''; and

       (C) in subsection (d)(2)(C), by striking out ``is brief or 
     for a nonrecurrent period and without a reasonable 
     expectation'' and inserting in lieu thereof ``is for a brief, 
     nonrecurrent period and there is no reasonable expectation''.
       (5) Section 4313(a)(4) is amended--
       (A) by striking out ``uniform services'' in subparagraph 
     (A)(ii) and inserting in lieu thereof ``uniformed services''; 
     and
       (B) by striking out ``of lesser status and pay which'' and 
     inserting in lieu thereof ``which is the nearest 
     approximation to a position referred to first in clause 
     (A)(i) and then in clause (A)(ii) which''.
       (6) Section 4316(d) is amended by adding at the end the 
     following new sentence: ``No employer may require any such 
     person to use vacation, annual, or similar leave during such 
     period of service.''.
       (7) Section 4317(a) is amended--
       (A) by striking out ``(a)(1)(A) Subject to paragraphs (2) 
     and (3), in'' and inserting in lieu thereof ``(a)(1) In'';
       (B) by redesignating clauses (i) and (ii) of paragraph (1) 
     (as amended by subparagraph (A) of this paragraph) as 
     subparagraphs (A) and (B), respectively;
       (C) by redesignating subparagraph (B) as paragraph (2); and
       (D) by redesignating subparagraph (C) as paragraph (3), and 
     in that paragraph by redesignating clauses (i) and (ii) as 
     subparagraphs (A) and (B), respectively, and by redesignating 
     subclauses (I) and (II) as clauses (i) and (ii), 
     respectively.
       (8) The last sentence of section 4318(b)(2) is amended by 
     striking out ``services,'' and inserting in lieu thereof 
     ``services, such payment period''.
       (9) Section 4322 is amended--
       (A) in the second sentence of subsection (d) by inserting 
     ``attempt to'' before ``resolve''; and
       (B) in subsection (e)--
       (i) in the matter preceding paragraph (1), by striking out 
     ``with respect to a complaint under subsection (d) are 
     unsuccessful,'' and inserting in lieu thereof ``with respect 
     to any complaint filed under subsection (a) do not resolve 
     the complaint,''; and
       (ii) in paragraph (2), by inserting ``or the Office of 
     Personnel Management'' after ``Federal executive agency''.
       (10) Section 4323(a) is amended--
       (A) in paragraph (1), by striking out ``of an unsuccessful 
     effort to resolve a complaint''; and
       (B) in paragraph (2)(A), by striking out ``regarding the 
     complaint under section 4322(c)'' and inserting in lieu 
     thereof ``under section 4322(a)''.
       (11) Section 4324 is amended--
       (A) in subsection (a)(1), by striking out ``of an 
     unsuccessful effort to resolve a complaint relating to a 
     Federal executive agency'';
       (B) in subsection (b)--
       (i) in the matter preceding paragraph (1), by inserting 
     ``or the Office of Personnel Management'' after ``Federal 
     executive agency''; and
       (ii) in paragraph (1), by striking out ``regarding a 
     complaint under section 4322(c)'' and inserting in lieu 
     thereof ``under section 4322(a)''; and
       (C) in subsection (c)(2)--
       (i) by inserting ``or the Office of Personnel Management'' 
     after ``Federal executive agency''; and

[[Page S11790]]

       (ii) by striking out ``employee'' and inserting in lieu 
     thereof ``Office''.
       (12) Section 4325(d)(1) is amended--
       (A) by striking out ``, alternative employment in the 
     Federal Government under this chapter,''; and
       (B) by striking out ``employee'' the last place it appears 
     and inserting in lieu thereof ``employees''.
       (13) Section 4326(a) is amended by inserting ``have 
     reasonable access to and the right to interview persons with 
     information relevant to the investigation and shall'' after 
     ``at all reasonable times,''.

     SEC. 312. AMENDMENTS TO TRANSITION RULES AND EFFECTIVE DATES.

       (a) Reemployment.--Section 8(a) of the Uniformed Services 
     Employment and Reemployment Rights Act of 1994 (Public Law 
     103-353; 108 Stat. 3175; 38 U.S.C. 4301 note) is amended--
       (1) in paragraph (3), by adding at the end thereof the 
     following: ``Any service begun up to 60 days after the date 
     of the enactment of this Act, which is served up to 60 days 
     after the date of the enactment of this Act pursuant to 
     orders issued under section 502(f) of title 32, United States 
     Code, shall be considered under chapter 43 of title 38, 
     United States Code, as in effect on the day before such date 
     of enactment. Any service pursuant to orders issued under 
     such section 502(f) served after 60 days after the date of 
     the enactment of this Act, regardless of when begun, shall be 
     considered under the amendments made by this Act.''; and
       (2) in paragraph (4), by striking out ``such period'' and 
     inserting in lieu thereof ``such 60-day period''.
       (b) Insurance.--Section 8(c)(2) of such Act is amended by 
     striking out ``person on active duty'' and inserting in lieu 
     thereof ``person serving a period of service in the uniformed 
     services''.

     SEC. 313. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), the 
     amendments made by this subtitle shall take effect as of 
     October 13, 1994.
       (b) Reorganized Title 10 References.--The amendments made 
     by clause (i), and subclauses (I), (III), and (IV) of clause 
     (ii), of section 311(4)(B) shall take effect as of December 
     1, 1994.
               TITLE IV--VETERANS LIFE INSURANCE PROGRAMS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Veterans' Insurance Reform 
     Act of 1996''.

     SEC. 402. MERGER OF RETIRED RESERVE SERVICEMEMBERS' GROUP 
                   LIFE INSURANCE AND VETERANS' GROUP LIFE 
                   INSURANCE AND EXTENSION OF VETERANS' GROUP LIFE 
                   INSURANCE TO MEMBERS OF THE READY RESERVE.

       (a) Definitions.--Section 1965(5) is amended--
       (1) by adding ``and'' at the end of subparagraph (B);
       (2) by striking out subparagraphs (C) and (D); and
       (3) by redesignating subparagraph (E) as subparagraph (C).
       (b) Persons Insured.--Section 1967 is amended--
       (1) in subsection (a)--
       (A) by inserting ``and'' at the end of paragraph (1);
       (B) by striking out paragraphs (3) and (4); and
       (C) in the matter following paragraph (2), by striking out 
     ``or the first day a member of the Reserves, whether or not 
     assigned to the Retired Reserve of a uniformed service, meets 
     the qualifications of section 1965(5)(C) of this title, or 
     the first day a member of the Reserves meets the 
     qualifications of section 1965(5)(D) of this title,''; and
       (2) by striking out subsection (d).
       (c) Duration and Termination of Coverage.--Section 1968 is 
     amended--
       (1) in subsection (a)--
       (A) by striking out ``subparagraph (B), (C), or (D) of 
     section 1965(5)'' in the matter preceding paragraph (1) and 
     inserting in lieu thereof ``section 1965(5)(B)'';
       (B) by striking out the period at the end of paragraphs (1) 
     and (2) and inserting in lieu thereof a semicolon;
       (C) by striking out the period at the end of paragraph (3) 
     and inserting in lieu thereof ``; and'';
       (D) in paragraph (4)--
       (i) by striking out ``one hundred and twenty days after'' 
     in the matter preceding subparagraph (A) and all that follows 
     through ``(A) unless on'' and inserting in lieu thereof ``120 
     days after separation or release from such assignment, unless 
     on'';
       (ii) by striking out ``prior to the expiration of one 
     hundred and twenty days'' and inserting in lieu thereof 
     ``before the end of 120 days'';
       (iii) by striking out the semicolon after ``such 
     assignment'' and inserting in lieu thereof a period; and
       (iv) by striking out subparagraphs (B) and (C); and
       (E) by striking out paragraphs (5) and (6); and
       (2) in subsection (b), by striking out the last two 
     sentences.
       (d) Deductions.--Section 1969 is amended--
       (1) in subsection (a)(2), by striking out ``is assigned to 
     the Reserve (other than the Retired Reserve)'' and all that 
     follows through ``section 1965(5)(D) of this title,'';
       (2) by striking out subsection (e); and
       (3) by redesignating subsections (f) and (g) as subsections 
     (e) and (f), respectively.
       (e) Conversion of SGLI to VGLI.--The Servicemembers' Group 
     Life Insurance of any member of the Retired Reserve of a 
     uniformed service shall be converted to Veterans' Group Life 
     Insurance effective 90 days after the date of the enactment 
     of this Act.

     SEC. 403. CONVERSION OF SGLI AND VGLI TO COMMERCIAL LIFE 
                   INSURANCE POLICY.

       (a) Option to Convert SGLI.--Subsection (b) of section 
     1968, as amended by section 402(c)(2), is amended--
       (1) by inserting ``(1)'' after ``(b)'' at the beginning of 
     the subsection;
       (2) by striking out ``would cease,'' in the first sentence 
     and all that follows through the period at the end of the 
     sentence and inserting in lieu thereof ``would cease--
       ``(A) shall be automatically converted to Veterans' Group 
     Life Insurance, subject to (i) the timely payment of the 
     initial premium under terms prescribed by the Secretary, and 
     (ii) the terms and conditions set forth in section 1977 of 
     this title; or
       ``(B) at the election of the member, shall be converted to 
     an individual policy of insurance as described in section 
     1977(e) of this title upon written application for conversion 
     made to the participating company selected by the member and 
     payment of the required premiums.''; and
       (3) by designating the second sentence as paragraph (2) and 
     in that sentence striking out ``Such automatic conversion'' 
     and inserting in lieu thereof ``Automatic conversion to 
     Veterans' Group Life Insurance under paragraph (1)''.
       (b) VGLI Conversion.--Section 1977 is amended--
       (1) in subsection (a)--
       (A) by inserting ``(1)'' after ``(a)'';
       (B) by striking out the last two sentences; and
       (C) by adding at the end the following:
       ``(2) If any person insured under Veterans' Group Life 
     Insurance again becomes insured under Servicemembers' Group 
     Life Insurance but dies before terminating or converting such 
     person's Veterans' Group Insurance, Veterans' Group Life 
     Insurance shall be payable only if such person is insured for 
     less than $200,000 under Servicemembers' Group Life 
     Insurance, and then only in an amount which, when added to 
     the amount of Servicemembers' Group Life Insurance payable, 
     does not exceed $200,000.''; and
       (2) in subsection (e)--
       (A) in the first sentence, by inserting ``at any time'' 
     after ``shall have the right''; and
       (B) by striking out the third sentence and inserting in 
     lieu thereof the following: ``The Veterans' Group Life 
     Insurance policy converted to an individual policy under this 
     subsection shall terminate on the day before the date on 
     which the individual policy becomes effective.''.

     SEC. 404. INFORMATION TO BE PROVIDED MEMBERS CONCERNING 
                   AUTOMATIC MAXIMUM COVERAGE OF $200,000 UNDER 
                   SERVICEMEN'S GROUP LIFE INSURANCE.

       Section 1967, as amended by section 402(b), is further 
     amended by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Whenever a member has the opportunity to make an 
     election under subsection (a) not to be insured under this 
     subchapter, or to be insured under this subchapter in an 
     amount less than the maximum amount of $200,000, and at such 
     other times periodically thereafter as the Secretary 
     concerned considers appropriate, the Secretary concerned 
     shall furnish to the member general information concerning 
     life insurance. Such information shall include--
       ``(1) the purpose and role of life insurance in financial 
     planning;
       ``(2) the difference between term life insurance and whole 
     life insurance;
       ``(3) the availability of commercial life insurance; and
       ``(4) the relationship between Servicemembers' Group Life 
     Insurance and Veterans' Group Life Insurance.''.

     SEC. 405. RENAMING OF SERVICEMEN'S GROUP LIFE INSURANCE 
                   PROGRAM.

       (a) In General.--The program of insurance operated by the 
     Secretary of Veterans Affairs under subchapter III of chapter 
     19 of title 38, United States Code, is hereby redesignated as 
     the Servicemembers' Group Life Insurance program.
       (b) Amendments to Chapter 19.-- Chapter 19 is amended as 
     follows:
       (1) The following provisions are amended by striking out 
     ``Servicemen's Group Life Insurance'' each place it appears 
     and inserting in lieu thereof ``Servicemembers' Group Life 
     Insurance'':
       (A) Subsections (a), (c), and (e) of section 1967.
       (B) Section 1968(b).
       (C) Subsections (a) through (d) of section 1969.
       (D) Subsections (a), (f), and (g) of section 1970.
       (E) Section 1971(b).
       (F) Section 1973.
       (G) The first sentence of section 1974(a).
       (H) Subsections (a), (d), and (g) of section 1977.
       (2)(A) The heading of subchapter III is amended to read as 
     follows:

       ``SUBCHAPTER III--SERVICEMEMBERS' GROUP LIFE INSURANCE''.

       (B) The heading of section 1974 is amended to read as 
     follows:

     ``Sec. 1974. Advisory Council on Servicemembers' Group Life 
       Insurance''.

       (3) The table of sections at the beginning of the chapter 
     is amended--

[[Page S11791]]

       (A) by striking out the item relating to subchapter III and 
     inserting in lieu thereof the following:


       ``subchapter iii--servicemembers' group life insurance'';

     and
       (B) by striking out the item relating to section 1974 and 
     inserting in lieu thereof the following:

``1974. Advisory Council on Servicemembers' Group Life Insurance.''.

       (c) Other Conforming Amendments.--(1) Section 1315(f)(1)(F) 
     is amended by striking out ``servicemen's'' the first place 
     it appears and inserting in lieu thereof ``servicemembers' 
     ''.
       (2) Sections 3017(a)(2)(A)(i) and 3224(1) are amended by 
     striking out ``Servicemen's'' each place it appears and 
     inserting in lieu thereof ``Servicemembers' ''.
       (d) References.--Any reference to Servicemen's Group Life 
     Insurance or to the Advisory Council on Servicemen's Group 
     Life Insurance in any Federal law, Executive order, 
     regulation, delegation of authority, or other document of the 
     Federal Government shall be deemed to refer to 
     Servicemembers' Group Life Insurance or the Advisory Council 
     on Servicemembers' Group Life Insurance, respectively.

     SEC. 406. TECHNICAL AMENDMENT.

       Section 1977(a) is amended by striking out ``and (e)'' in 
     the first and second sentences.
     TITLE V--DEPARTMENT OF VETERANS AFFAIRS ADMINISTRATIVE MATTERS

     SEC. 501. REVISION OF AUTHORITY RELATING TO CENTERS FOR 
                   MINORITY VETERANS AND WOMEN VETERANS.

       (a) SES Status of Directors.--Sections 317(b) and 318(b) 
     are each amended by inserting ``career or'' before 
     ``noncareer''.
       (b) Additional Functions of Center for Minority Veterans.--
     Section 317(d) is amended--
       (1) by redesignating paragraph (10) as paragraph (12); and
       (2) by inserting after paragraph (9) the following new 
     paragraphs (10) and (11):
       ``(10) Advise the Secretary and other appropriate officials 
     on the effectiveness of the Department's efforts to 
     accomplish the goals of section 492B of the Public Health 
     Service Act (42 U.S.C. 289a-2) with respect to the inclusion 
     of minorities in clinical research and on particular health 
     conditions affecting the health of members of minority groups 
     which should be studied as part of the Department's medical 
     research program and promote cooperation between the 
     Department and other sponsors of medical research of 
     potential benefit to veterans who are minorities.
       ``(11) Provide support and administrative services to the 
     Advisory Committee on Minority Veterans provided for under 
     section 544 of this title.''.
       (c) Definition of Minority Veterans.--Section 317 is 
     amended by adding at the end the following:
       ``(g) In this section--
       ``(1) The term `veterans who are minorities' means veterans 
     who are minority group members.
       ``(2) The term `minority group member' has the meaning 
     given such term in section 544(d) of this title.''.
       (d) Clarification of Functions of Center for Women 
     Veterans.--Section 318(d)(10) is amended by striking out 
     ``(relating to'' and all that follows through ``and of'' and 
     inserting in lieu thereof ``(42 U.S.C. 289a-2) with respect 
     to the inclusion of women in clinical research and on''.
       (e) Additional Functions of Advisory Committees.--(1) 
     Section 542(b) is amended by inserting ``, including the 
     Center for Women Veterans'' before the period at the end.
       (2) Section 544(b) is amended by inserting ``, including 
     the Center for Minority Veterans'' before the period at the 
     end.
       (f) Termination Date of Advisory Committee on Minority 
     Veterans.--Section 544(e) is amended by striking out 
     ``December 31, 1997'' and inserting in lieu thereof 
     ``December 31, 1999''.

     SEC. 502. LIMITATION ON CLOTHING ALLOWANCE FOR INCARCERATED 
                   VETERANS.

       (a) Pro Rata Reduction.--Chapter 53 is amended by inserting 
     after section 5313 the following new section:

     ``Sec. 5313A. Limitation on payment of clothing allowance to 
       incarcerated veterans

       ``In the case of a veteran who is incarcerated in a 
     Federal, State, or local penal institution for a period in 
     excess of 60 days and who is furnished clothing without 
     charge by the institution, the amount of any annual clothing 
     allowance payable to the veteran under section 1162 of this 
     title shall be reduced by an amount equal to \1/365\ of the 
     amount of the allowance otherwise payable under that section 
     for each day on which the veteran was so incarcerated during 
     the 12-month period preceding the date on which payment of 
     the allowance would be due. This section shall be carried out 
     under regulations prescribed by the Secretary.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 5313 the following new item:

``5313A. Limitation on payment of clothing allowance to incarcerated 
              veterans.''.

     SEC. 503. EXTENSION OF VETERANS' CLAIMS ADJUDICATION 
                   COMMISSION.

       (a) Extension of Time for Submission of Final Report.--
     Section 402(e)(2) of the Veterans' Benefits Improvements Act 
     of 1994 (Public Law 103-446; 108 Stat. 4661) is amended by 
     striking out ``Not later than 18 months after such date'' and 
     inserting in lieu thereof ``Not later than December 31, 
     1996''.
       (b) Funding.--From amounts appropriated to the Department 
     of Veterans Affairs for each of fiscal years 1996 and 1997 
     for the payment of compensation and pension, the amount of 
     $75,000 is hereby made available for the activities of the 
     Veterans' Claims Adjudication Commission under title IV of 
     the Veterans' Benefits Improvements Act of 1994 (Public Law 
     103-446; 108 Stat. 4659; 38 U.S.C. 5101 note).

     SEC. 504. PILOT PROGRAM FOR USE OF CONTRACT PHYSICIANS FOR 
                   DISABILITY EXAMINATIONS.

       (a) Authority.--The Secretary of Veterans Affairs, acting 
     through the Under Secretary for Benefits, may conduct a pilot 
     program under this section under which examinations with 
     respect to medical disability of applicants for benefits 
     under laws administered by the Secretary that are carried out 
     through the Under Secretary for Benefits may be made by 
     persons other than employees of the Department of Veterans 
     Affairs. Any such examination shall be performed pursuant to 
     contracts entered into by the Under Secretary for Benefits 
     with those persons.
       (b) Limitation.--The Secretary may carry out the pilot 
     program under this section through not more than 10 regional 
     offices of the Department of Veterans Affairs.
       (c) Source of Funds.--Payments for contracts under the 
     pilot program under this section shall be made from amounts 
     available to the Secretary of Veterans Affairs for payment of 
     compensation and pensions.
       (d) Report to Congress.--Not later than three years after 
     the date of the enactment of this Act, the Secretary shall 
     submit to the Congress a report on the effect of the use of 
     the authority provided by subsection (a) on the cost, 
     timeliness, and thoroughness of medical disability 
     examinations.

     SEC. 505. EXPANSION OF PERIOD OF VIETNAM ERA FOR CERTAIN 
                   VETERANS.

       (a) In General.--Paragraph (29) of section 101 is amended 
     to read as follows:
       ``(29) The term `Vietnam era' means the following:
       ``(A) The period beginning on February 28, 1961, and ending 
     on May 7, 1975, in the case of a veteran who served in the 
     Republic of Vietnam during that period.
       ``(B) The period beginning on August 5, 1964, and ending on 
     May 7, 1975, in all other cases.''.
       (b) Limited Expansion for Specific Compensation Purposes.--
     (1) Paragraphs (1)(B) and (3) of section 1116(a) are each 
     amended by striking out ``during the Vietnam era'' and 
     inserting in lieu thereof ``during the period beginning on 
     January 9, 1962, and ending on May 7, 1975,''.
       (2) Paragraphs (1)(A), (2)(C), (2)(E), (2)(F), and (4) of 
     such section are amended by striking out ``during the Vietnam 
     era'' and inserting in lieu thereof ``during the period 
     beginning on January 9, 1962, and ending on May 7, 1975''.
       (c) Limited Expansion for Specific Health Care Purposes.--
     (1) The provision stipulated in paragraph (2) is amended--
       (A) in clause (i), by striking out ``during the Vietnam 
     era,'' and inserting in lieu thereof ``during the period 
     beginning on January 9, 1962, and ending on May 7, 1975,''; 
     and
       (B) in clause (ii), by striking out ``such era'' and 
     inserting in lieu thereof ``such period''.
       (2) The provision referred to in paragraph (1)--
       (A) if the Veterans' Health Care Eligibility Reform Act of 
     1996 is enacted as a measure of the One Hundred Fourth 
     Congress, is paragraph (4)(A) of section 1710(e) of title 38, 
     United States Code, as added by section 102 of such Act; and
       (B) if such Act is not enacted as a measure of the One 
     Hundred Fourth Congress, is paragraph (1)(A) of section 
     1710(e) of such title.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1997. No benefit may be paid 
     or provided by reason of such amendments for any period 
     before such date.

     SEC. 506. PAYMENT OF BENEFIT TO SURVIVING SPOUSE FOR MONTH IN 
                   WHICH VETERAN DIES.

       (a) Benefit for Month of Death.--Section 5310 is amended--
       (1) by inserting ``(a)'' before ``If, in accordance with''; 
     and
       (2) by adding at the end the following:
       ``(b)(1) If the surviving spouse of a veteran who was in 
     receipt of compensation or pension at the time of death is 
     not entitled to death benefits under chapter 11, 13, or 15 of 
     this title for the month in which the veteran's death occurs, 
     that surviving spouse shall be entitled to a benefit for that 
     month in the amount of benefits the veteran would have 
     received under chapter 11 or 15 of this title for that month 
     but for the death of the veteran.
       ``(2) If (notwithstanding section 5112(b)(1) of this title) 
     a check or other payment is issued to, and in the name of, 
     the deceased veteran as a benefit payment under chapter 11 or 
     15 of this title for the month in which death occurs, that 
     check or other payment (A) shall be treated for all purposes 
     as being payable to the surviving spouse, and (B) if that 
     check or other payment is negotiated or deposited, shall be 
     considered to be the benefit to which the surviving spouse is 
     entitled under this paragraph. However, if such check or 
     other payment is in an amount less than

[[Page S11792]]

     the amount of the benefit under paragraph (1), the unpaid 
     amount shall be treated in the same manner as an accrued 
     benefit under section 5121 of this title.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to the death of compensation and 
     pension recipients occurring after December 31, 1996.

     SEC. 507. INCREASE IN PERIOD FOR WHICH ACCRUED BENEFITS 
                   PAYABLE.

       Subsection (a) of section 5121 is amended by striking out 
     ``one year'' in the matter preceding paragraph (1) and 
     inserting in lieu thereof ``two years''.

     SEC. 508. APPOINTMENT OF VETERANS SERVICE ORGANIZATIONS AS 
                   CLAIMANTS' REPRESENTATIVES.

       (a) Power of Attorney Naming a Veterans Service 
     Organization.--Section 5902 is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c)(1) Unless a claimant specifically indicates in a 
     power of attorney filed with the Department a desire to 
     appoint only a recognized representative of an organization 
     listed in or approved under subsection (a), the Secretary 
     may, for any purpose, treat the power of attorney naming such 
     an organization, a specific office of such an organization, 
     or a recognized representative of such an organization as the 
     claimant's representative as an appointment of the entire 
     organization as the claimant's representative.
       ``(2) Whenever the Secretary is required or permitted to 
     notify a claimant's representative, and the claimant has 
     named in a power of attorney an organization listed in or 
     approved under subsection (a), a specific office of such an 
     organization, or a recognized representative of such an 
     organization without specifically indicating a desire to 
     appoint only a recognized representative of the organization, 
     the Secretary shall notify the organization at the address 
     designated by the organization for the purpose of receiving 
     the notification concerned.''.
       (b) Applicability.--The amendments made by this section 
     apply to any power of attorney filed with the Department of 
     Veterans Affairs, regardless of the date of its execution.

     SEC. 509. PROVISION OF COPIES OF BOARD OF VETERANS' APPEALS 
                   DECISIONS.

       Subsection (e) of section 7104 is amended to read as 
     follows:
       ``(e)(1) After reaching a decision on a case, the Board 
     shall promptly mail a copy of its written decision to the 
     claimant at the last known address of the claimant.
       ``(2) If the claimant has an authorized representative, the 
     Board shall--
       ``(A) mail a copy of its written decision to the authorized 
     representative at the last known address of the authorized 
     representative; or
       ``(B) send a copy of its written decision to the authorized 
     representative by any means reasonably likely to provide the 
     authorized representative with a copy of the decision within 
     the same time a copy would be expected to reach the 
     authorized representative if sent by first-class mail.''.

     SEC. 510. LIMITATION ON RELOCATION OR REDUCTION IN STAFFING 
                   OF CERTAIN ELEMENTS OF THE EDUCATION SERVICE OF 
                   THE VETERANS BENEFITS ADMINISTRATION.

       No funds available to the Department of Veterans Affairs 
     may be obligated or expended before January 1, 1998, to 
     relocate any function of, or to reduce the number of 
     personnel assigned to, any of the following elements of the 
     Veterans Benefits Administration of the Department of 
     Veterans Affairs:
       (1) The Office of Education Procedures Systems.
       (2) The Office of Education Operations.
       (3) The Office of Education Policy and Program 
     Administration.
                        TITLE VI--OTHER MATTERS

     SEC. 601. EXTENSION OF CERTAIN AUTHORITIES FOR SERVICES FOR 
                   HOMELESS VETERANS.

       (a) Authority for Community-Based Residential Care for 
     Homeless Chronically Mentally Ill Veterans and Other 
     Veterans.--Section 115(d) of the Veterans' Benefits and 
     Services Act of 1988 (38 U.S.C. 1712 note) is amended by 
     striking out ``December 31, 1997'' and inserting in lieu 
     thereof ``December 31, 1998''.
       (b) Authorizations of Appropriations for Homeless Veterans 
     Reintegration Projects.--Section 738(e)(1) of the Stewart B. 
     McKinney Homeless Assistance Act (42 U.S.C. 11448(e)(1)) is 
     amended by adding at the end the following:
       ``(E) $10,000,000 for fiscal year 1997.
       ``(F) $10,000,000 for fiscal year 1998.''.

     SEC. 602. REPAIR AND LONG-TERM MAINTENANCE OF WAR MEMORIALS.

       (a) Repair and Long-term Maintenance of War Memorials.--
     Section 5(b)(2) of the Act entitled ``An Act for the creation 
     of an American Battle Monuments Commission to erect suitable 
     memorials commemorating the services of the American soldier 
     in Europe, and for other purposes'', approved March 4, 1923 
     (36 U.S.C. 125(b)(2)), is amended--
       (1) by inserting ``(A)'' after ``(2)''; and
       (2) by adding at the end the following:
       ``(B) In assuming responsibility for a war memorial under 
     paragraph (1), the Commission may enter into arrangements 
     with the sponsors of the memorial to provide for the repair 
     or long-term maintenance of the memorial. Any funds 
     transferred to the Commission for the purpose of this 
     subparagraph shall, in lieu of subparagraph (A), be deposited 
     by the Commission in the fund established by paragraph (3).
       ``(3)(A) There is established in the Treasury a fund which 
     shall be available to the Commission for expenses for the 
     maintenance and repair of memorials with respect to which the 
     Commission enters into arrangements under paragraph (2)(B). 
     The fund shall consist of (i) amounts deposited, and interest 
     and proceeds credited, under subparagraph (B), and (ii) 
     obligations obtained under subparagraph (C).
       ``(B) The Commission shall deposit in the fund such amounts 
     from private contributions as may be accepted under paragraph 
     (2)(B). The Secretary of the Treasury shall credit to the 
     fund the interest on, and the proceeds from sale or 
     redemption of, obligations held in the fund.
       ``(C) The Secretary of the Treasury shall invest any 
     portion of the fund that, as determined by the Commission, is 
     not required to meet current expenses. Each investment shall 
     be made in an interest bearing obligation of the United 
     States or an obligation guaranteed as to principal and 
     interest by the United States that, as determined by the 
     Commission, has a maturity suitable for the fund.
       ``(D) The Commission shall separately account for all 
     moneys deposited in and expended from the fund with respect 
     to each war memorial for which an arrangement for the repair 
     or long-term maintenance of the memorial is entered to under 
     paragraph (2)(B).''.
       (b) Accounting Procedures Relating to Receipt and 
     Expenditure of Contributions.--Such Act is further amended by 
     adding at the end the following new section:
       ``Sec. 14. (a) The Commission shall have a system of 
     financial controls to enable the Commission to comply with 
     the requirements of subsection (b) and section 5(b)(3)(D).
       ``(b) The Commission shall--
       ``(1) by March 1 of each year (beginning with 1998)--
       ``(A) prepare a financial statement which covers all 
     accounts and associated activities of the Commission for the 
     preceding fiscal year and is consistent with the requirements 
     of section 3515 of title 31, United States Code; and
       ``(B) submit the financial statement, together with a 
     narrative summary, to the Committees on Veterans' Affairs of 
     the Senate and House of Representatives; and
       ``(2) obtain an audit by the Comptroller General of the 
     United States of each financial statement prepared under 
     paragraph (1)(A), which shall be conducted in accordance with 
     applicable generally accepted government auditing standards 
     and shall be in lieu of any audit otherwise required by law.
       ``(c) The Commission may not obligate, withdraw, or expend 
     funds received as contributions before March 1, 1998.''.
    TITLE VII--COMMISSION ON SERVICEMEMBERS AND VETERANS TRANSITION 
                               ASSISTANCE

     SEC. 701. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the Commission on Servicemembers and Veterans 
     Transition Assistance (hereafter in this title referred to as 
     the ``Commission'').
       (b) Membership.--(1) The Commission shall be composed of 12 
     members appointed from among private United States citizens 
     with appropriate and diverse experiences, expertise, and 
     historical perspectives on veterans, military, 
     organizational, and management matters. The members shall be 
     appointed as follows:
       (A) Four shall be appointed jointly by the chairman and 
     ranking minority member of the Committee on Veterans' Affairs 
     of the House of Representatives.
       (B) Four shall be appointed jointly by the chairman and 
     ranking minority member of the Committee on Veterans' Affairs 
     of the Senate.
       (C) Two shall be appointed jointly by the chairman and 
     ranking minority member of the Committee on National Security 
     of the House of Representatives.
       (D) Two shall be appointed jointly by the chairman and 
     ranking minority member of the Committee on Armed Services of 
     the Senate.
       (2)(A) One member of the Commission appointed under each of 
     subparagraphs (A) and (B) of paragraph (1) shall be a 
     representative of a veterans service organization.
       (B) To the maximum extent practicable, the individuals 
     appointed under paragraph (1) as members of the Commission 
     shall be veterans.
       (C) Not more than seven of the members of the Commission 
     may be members of the same political party.
       (3) In addition to the members appointed under paragraph 
     (1), the following shall be nonvoting members of the 
     Commission:
       (A) The Under Secretary for Benefits of the Department of 
     Veterans Affairs.
       (B) The Assistant Secretary of Defense for Force Management 
     and Personnel.
       (C) The Assistant Secretary of Labor for Veterans' 
     Employment and Training.
       (4) The appointments of members of the Commission shall, to 
     the maximum extent practicable, be made after consultation 
     with representatives of veterans service organizations.
       (5) The appointments of the members of the Commission shall 
     be made not later than 45 days after the date of the 
     enactment of this Act.

[[Page S11793]]

       (c) Period of Appointment; Vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner as the original appointment.
       (d) Initial Meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed 
     under subsection (b)(1), the Commission shall hold its first 
     meeting.
       (e) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number may hold 
     hearings.
       (f) Chairman and Vice Chairman.--The Commission shall 
     select a chairman and vice chairman from among its members.
       (g) Meetings.--The Commission shall meet at the call of the 
     chairman of the Commission.
       (h) Panels.--The Commission may establish panels composed 
     of less than the full membership of the Commission for the 
     purpose of carrying out the Commission's duties. The actions 
     of such panels shall be subject to the review and control of 
     the Commission. Any findings and determinations made by such 
     a panel shall not be considered the findings and 
     determinations of the Commission unless approved by the 
     Commission.
       (i) Authority of Individuals To Act for Commission.--Any 
     member or agent of the Commission may, if authorized by the 
     Commission, take any action which the Commission is 
     authorized to take under this title.

     SEC. 702. DUTIES OF COMMISSION.

       (a) In General.--The Commission shall--
       (1) review the adequacy and effectiveness of veterans 
     transition assistance and benefits programs in providing 
     assistance to members of the Armed Forces in making the 
     transition and adjustment to civilian life;
       (2) review the allocation under law of responsibility for 
     the administration of veterans transition assistance and 
     benefits programs among the various departments and agencies 
     of the Government and determine the feasibility and 
     desirability of consolidating such administration;
       (3) evaluate proposals for improving such programs, 
     including proposals for alternative means of providing 
     services delivered by such programs; and
       (4) make recommendations to Congress regarding the need for 
     improvements in such programs.
       (b) Review of Programs To Assist Members of the Armed 
     Forces at Separation.--(1) While carrying out the general 
     duties specified in subsection (a), the members of the 
     Commission appointed under subparagraphs (C) and (D) of 
     section 701(b)(1) and the member specified in subparagraph 
     (B) of section 701(b)(3) shall review primarily the programs 
     intended to assist members of the Armed Forces at the time of 
     their separation from service in the Armed Forces, including 
     programs designed to assist families of such members.
       (2) In carrying out the review, those members of the 
     Commission shall determine the following:
       (A) The adequacy of the programs referred to in paragraph 
     (1) for their purposes.
       (B) The adequacy of the support of the Armed Forces for 
     such programs.
       (C) The adequacy of funding levels for such programs.
       (D) The effect, if any, of the existence of such programs 
     on military readiness.
       (E) The extent to which such programs provide members of 
     the Armed Forces with job-search skills.
       (F) The extent to which such programs prepare such members 
     for employment in the private sector and in the public 
     sector.
       (G) The effectiveness of such programs in assisting such 
     members in finding employment in the public sector upon their 
     separation from service.
       (H) The ways in which such programs could be improved.
       (3) In carrying out the review, the Commission shall make 
     use of previous studies which have been made of such 
     programs.
       (c) Review of Programs To Assist Veterans.--(1) While 
     carrying out the general duties specified in subsection (a), 
     the members of the Commission appointed under subparagraphs 
     (A) and (B) of section 701(b)(1) and the members specified in 
     subparagraphs (A) and (C) of section 701(b)(3) shall review 
     the following programs:
       (A) Educational assistance programs.
       (B) Job counseling, job training, and job placement 
     services programs.
       (C) Rehabilitation and training programs.
       (D) Housing loan programs.
       (E) Small business loan and small business assistance 
     programs.
       (F) Employment and employment training programs for 
     employment in the public sector and the private sector, 
     including employer training programs and union apprenticeship 
     programs.
       (G) Government personnel policies (including veterans' 
     preference policies) and the enforcement of such policies.
       (H) Programs that prepare the families of members of the 
     Armed Forces for their transition from military life to 
     civilian life and facilitate that transition.
       (2) In carrying out the review, such members of the 
     Commission shall determine the following:
       (A) The adequacy of the programs referred to in paragraph 
     (1) for their purposes.
       (B) The adequacy of the support of the Department of 
     Veterans Affairs for such programs.
       (C) The adequacy of funding levels for such programs.
       (D) The extent to which such programs provide veterans with 
     job-search skills.
       (E) The extent to which such programs prepare veterans for 
     employment in the private sector and in the public sector.
       (F) The effectiveness of such programs in assisting 
     veterans in finding employment in the public sector upon 
     their separation from service.
       (G) The ways in which such programs could be improved.
       (d) Reports.--(1) Not later than 90 days after the date on 
     which all members of the Commission have been appointed under 
     section 701(b)(1), the Commission shall submit to the 
     Committees on Veterans' Affairs and Armed Services of the 
     Senate and the Committees on Veterans' Affairs and National 
     Security of the House of Representatives a report setting 
     forth a plan for the work of the Commission. The Commission 
     shall develop the plan in consultation with the Secretary of 
     Defense, the Secretary of Veterans Affairs, the Secretary of 
     Labor, and the heads of other appropriate departments and 
     agencies of the Government.
       (2)(A) Not later than 18 months after the date of the first 
     meeting of the Commission, the Commission shall submit to the 
     committees referred to in paragraph (1), and to the Secretary 
     of Defense, the Secretary of Veterans Affairs, and the 
     Secretary of Labor, a report setting forth the activities, 
     findings, and recommendations of the Commission, including 
     any recommendations for legislative action and administrative 
     action as the Commission considers appropriate.
       (B) Not later than 90 days after receiving the report 
     referred to in subparagraph (A), the Secretary of Defense, 
     the Secretary of Veterans Affairs, and the Secretary of Labor 
     shall jointly transmit the report to Congress, together with 
     the Secretaries' comments on the report.

     SEC. 703. POWERS OF COMMISSION.

       (a) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out the purposes of this title.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from the Department of Defense, the 
     Department of Veterans Affairs, and any other department or 
     agency of the Government such information as the Commission 
     considers necessary to carry out its duties under this title. 
     Upon request of the chairman of the Commission, the head of 
     such department or agency shall furnish such information 
     expeditiously to the Commission.

     SEC. 704. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

       (a) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Government.
       (b) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.
       (c) Miscellaneous Administrative Support.--The Secretary of 
     Defense, the Secretary of Veterans Affairs, and the Secretary 
     of Labor shall, upon the request of the chairman of the 
     Commission, furnish the Commission, on a reimbursable basis, 
     any administrative and support services as the Commission may 
     require.

     SEC. 705. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Commission 
     may be compensated at a rate equal to the daily equivalent of 
     the annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in performing the duties of the 
     Commission.
       (b) Travel and Travel Expenses.--(1) Members and personnel 
     of the Commission may travel on military aircraft, military 
     vehicles, or other military conveyances when travel is 
     necessary in the performance of a duty of the Commission 
     except when the cost of commercial transportation is less 
     expensive.
       (2) The members of the Commission may be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     their homes or regular places of business in the performance 
     of services for the Commission.
       (c) Staff.--(1) The chairman of the Commission may, without 
     regard to civil service laws and regulations, appoint and 
     terminate an executive director and up to five additional 
     staff members as may be necessary to enable the Commission to 
     perform its duties. In appointing an individual as executive 
     director, the chairman shall, to the maximum extent 
     practicable, attempt to appoint an individual who is a 
     veteran. The employment of an executive director shall be 
     subject to confirmation by the Commission.
       (2) The chairman of the Commission may fix the compensation 
     of the executive director and other personnel without regard 
     to the provisions of chapter 51 and subchapter III of chapter 
     53 of title 5, United States Code, relating to classification 
     of positions and General Schedule pay rates, except that the 
     rate of pay for the executive director and other staff 
     members may not exceed the rate payable for level V of the 
     Executive Schedule under section 5316 of such title.

[[Page S11794]]

       (d) Detail of Government Employees.--Upon request of the 
     chairman of the Commission, the head of any department or 
     agency of the Government may detail, on a nonreimbursable 
     basis, any personnel of the department or agency to the 
     Commission to assist the Commission in carrying out its 
     duties.
       (e) Procurement of Temporary and Intermittent Services.--
     The chairman of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level IV of the Executive Schedule under 
     section 5316 of such title.

     SEC. 706. TERMINATION OF COMMISSION.

       The Commission shall terminate 90 days after the date on 
     which it submits its report under section 702(d)(2).

     SEC. 707. DEFINITIONS.

       For the purposes of this title:
       (1) The term ``veterans transition assistance and benefits 
     program'' means any program of the Government the purpose of 
     which is--
       (A) to assist, by rehabilitation or other means, members of 
     the Armed Forces in readjusting or otherwise making the 
     transition to civilian life upon their separation from 
     service in the Armed Forces; or
       (B) to assist veterans in making the transition to civilian 
     life.
       (2) The term ``Armed Forces'' has the meaning given such 
     term in section 101(10) of title 38, United States Code.
       (3) The term ``veteran'' has the meaning given such term in 
     section 101(2) of title 38, United States Code.
       (4) The term ``veterans service organization'' means any 
     organization covered by section 5902(a) of title 38, United 
     States Code.

     SEC. 708. FUNDING.

       (a) In General.--The Secretary of Defense shall, upon the 
     request of the chairman of the Commission, make available to 
     the Commission such amounts as the Commission may require to 
     carry out its duties under this title. The Secretary shall 
     make such amounts available from amounts appropriated for the 
     Department of Defense, except that such amounts may not be 
     from amounts appropriated for the transition assistance 
     program (TAP), the Army career alumni program (ACAP), or any 
     similar program.
       (b) Availability.--Any sums made available to the 
     Commission under subsection (a) shall remain available, 
     without fiscal year limitation, until the termination of the 
     Commission.

  The title is amended so as to read:

       To amend title 38, United States Code, to improve the 
     benefits programs administered by the Secretary of Veterans 
     Affairs, to provide for a study of the Federal programs for 
     veterans, and for other purposes.

  Mr. NICKLES. Mr. President, this bill is a very important bill. It is 
the Senate bill S. 1711, the Veterans' Benefits Improvements Act of 
1996.
  Senator Simpson had a substitute which we are now entering into the 
Record. Again, this is very substantive legislation, which Senator 
Simpson deserves great accolades for. And I compliment him for the 
amendment.

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