[Congressional Record Volume 143, Number 94 (Monday, July 7, 1997)]
[Senate]
[Pages S6907-S6918]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. SPECTER (by request):
  S. 986. A bill to amend title 38, United States Code, to make certain 
improvements in the housing loan programs for veterans and eligible 
persons, and for other purposes; to the Committee on Veterans' Affairs.

[[Page S6908]]

          the veterans' housing loan improvements act of 1997

  Mr. SPECTER. Mr. President, as chairman of the Committee on Veterans' 
Affairs, I have today introduced, at the request of the Secretary of 
Veterans Affairs, S. 986, the proposed Veterans' Housing Loan 
Improvements Act of 1997. The Secretary of Veterans Affairs submitted 
this legislation to the President of the Senate by letter dated June 4, 
1997.
  My introduction of this measure is in keeping with the policy which I 
have adopted of generally introducing--so that there will be specific 
bills to which my colleagues and others may direct their attention and 
comments--all administration-proposed draft legislation referred to the 
Committee on Veterans' Affairs. Thus, I reserve the right to support or 
oppose the provisions of, as well as any amendment to, this 
legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record, together with the transmittal letter and the 
enclosed section-by-section analysis of the draft legislation which 
accompanied it.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 986

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

     SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
                   CODE.

       (a)  Short Title.--This Act may be cited as the ``Veterans' 
     Housing Loan Improvements Act of 1997.''
       (b) References to Title 38.--Except as otherwise may be 
     specifically provided, whenever in the 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.

     SEC. 2. LOAN FEE.

       (a) Section 3729 is amended by striking out everything 
     after the catchline, and inserting in lieu thereof:
       ``(a)(1) Except as provided in subsection (c) of the 
     section, a fee shall be collected from each person obtaining 
     a housing load guaranteed, insured, or made under this 
     chapter, and each person assuming a loan to which section 
     3714 of this title applies. Such a loan may not be 
     guaranteed, insured, made, or assumed until the fee payable 
     under this section has been remitted to the Secretary.
       ``(2) The fee may be included in the loan and paid from the 
     proceeds thereof.
       ``(b)(1) The amount of the fee shall be determined from the 
     table in subsection (d) of this section. The fee is expressed 
     as a percentage of the total amount of the loan guaranteed, 
     insured, or made, or, in the case of a loan assumption, the 
     unpaid principal balance of the loan on the date of the 
     transfer of the property.
       ``(2) Any reference to a section in the Type of Loan column 
     in subsection (d) of this section refers to a section of this 
     title.
       ``(3) For the purposes of this section:
       ``(A) The term `Active Duty Veteran' means any veteran 
     eligible for the benefits of this chapter other than a 
     Reservist;
       ``(B) The term `Reservist' means a veteran described in 
     section 3701(b)(5)(A);
       ``(C) The term `Other Obligor' means a person who is not a 
     veteran, as defined by section 101 or other provision of this 
     chapter;
       ``(D) The term `initial loan described in section 3710' 
     means a loan obtained by a veteran pursuant to section 3710 
     of this title if the veteran has never obtained a loan 
     guaranteed under section 3710 or more under section 3711;
       ``(E) the term `subsequent loan described in section 3710' 
     means a loan obtained by a veteran pursuant to section 3710 
     title if the veteran has previously obtained a loan 
     guaranteed under section 3710 or made under section 3711. The 
     term shall not refer to an interest rate reduction 
     refinancing loan;
       ``(F) The term `interest rate reduction refinancing loan' 
     means a loan described in section 3710(a)(8), 
     3710(a)(9)(B)(i), 7310(a)(11), 3712(a)(1)(F), or 3762(h);
       ``(G) The term `0-down' means a downpayment, if any, of 
     less than 5 percent of the total purchase price or 
     construction cost of the dwelling;
       ``(H) The term `5-down' means a downpayment of at least 5 
     percent but less than 10 percent of the total purchase price 
     or construction cost of the dwelling;
       ``(I) The term `10-down' means a downpayment of 10 percent 
     or more of the total purchase price or construction cost of 
     the dwelling;
       ``(c) A fee may not be collected under this section from a 
     veteran who is receiving compensation (or who but for the 
     receipt of retirement pay would be entitled to receive 
     compensation) or from a surviving spouse of any veteran 
     (including a person who died in the active military, naval, 
     or air service) who died from a service-connected disability.
       ``(d) The following table establishes the percentages of 
     fees to be collected under this section:

                            ``LOAN FEE TABLE                            
------------------------------------------------------------------------
                                            Active                      
              ``Type of loan                 duty    Reservist    Other 
                                            veteran              obligor
------------------------------------------------------------------------
``Initial loan described in section                                     
 3710(a) to purchase or construct a                                     
 dwelling with 0-down, or any other                                     
 initial loan described in section                                      
 3710(a).................................      2.00       2.75        NA
``Subsequent loan described in section                                  
 3710(a) to purchase or construct a                                     
 dwelling with 0-down, or any other                                     
 subsequent loan described in section                                   
 3710(a).................................      3.00       3.00        NA
``Loan described in section 3710(a) to                                  
 purchase or construct a dwelling with 5-                               
 down....................................      1.50       2.25        NA
``Loan described in section 3710(a) to                                  
 purchase or construct a dwelling with 10-                              
 down....................................      1.25       2.00        NA
``Interest rate reduction refinancing                                   
 loan....................................      0.50       0.50        NA
``Direct loan made under section 3711....      1.00       1.00        NA
``Manufactured home loan described in                                   
 section 3712 (other than an interest                                   
 rate reduction refinancing loan)........      1.00       1.00        NA
``Loan to Native American veteran made                                  
 under section 3762 (other than an                                      
 interest rate reduction refinancing                                    
 loan)...................................      1.25       1.25        NA
``Assuming a loan to which section 3714                                 
 applies.................................      0.50       0.50      0.50
``Loan made under section 3733(a)........      2.25       2.25      2.25
------------------------------------------------------------------------

       ``(e) Notwithstanding subsection (d) of this section, the 
     Secretary, by regulation, may prescribe a different 
     percentage for the fee applicable to loans made under section 
     3733(a), if the Secretary finds a different amount is 
     necessary so that the fee charged for such loans is 
     consistent with the fees charged by other departments of the 
     Government for similar loans available to the public, or if 
     the Secretary determines that considerations of the market 
     for properties sold by the Secretary necessitate a different 
     fee.''.
       (b) This section applies to any loan closed after September 
     30, 1997.

     SEC. 3. EXTENSION OF NO-BID FORMULA.

       Section 3732(c) is amended by striking out paragraph (11) 
     in its entirety.

     SEC. 4. ENHANCED VENDEE LOAN SALES.

       Section 3720(h) is amended by:
       (a) striking out paragraph (2) in its entirety; and
       (b) striking out ``(h)(1)'' and inserting in lieu thereof 
     ``(h)''.

     SEC. 5. REPEAL OF LOAN DEBT COLLECTION RESTRICTIONS.

       Subchapter III of chapter 37 is amended by striking out 
     section 3726 in its entirety.

     SEC. 6. ACCOUNT CONSOLIDATION.

       (a) Subchapter III of chapter 37 is amended by striking out 
     sections 3723, 3724, and 3725 in their entirety.
       (b) Such subchapter is further amended by inserting after 
     section 3721 the following new section:

     ``Sec. 3722. Veterans Housing Benefit Program Fund

       ``(a) There is hereby established in the Treasury of the 
     United States a fund known as the Veterans Housing Benefit 
     Program Fund.
       ``(b) The Veterans Housing Benefit Program Fund shall be 
     available to the Secretary, without fiscal year limitation, 
     for all housing loan operations under this chapter, 
     consistent with the Federal Credit Reform Act of 1990.
       ``(c) There shall be deposited in the Veterans Housing 
     Benefit Program Fund:
       ``(1) All money as of September 30, 1997, in: (A) the 
     Direct Loan Revolving Fund established by section 513 of the 
     Servicemen's Readjustment Act of 1944; (B) the Department of 
     Veterans Affairs Loan Guaranty Revolving Fund established by 
     section 7(a) of Public Law 86-665; and (C) the Guaranty and 
     Indemnity Fund established by section 302(a)(1) of Public Law 
     101-237;
       ``(2) All money hereafter appropriated for such Fund;
       ``(3) All fees collected by the Secretary on or after 
     October 1, 1997, pursuant to section 3729, or any other 
     provision of law or regulation established by the Secretary 
     imposing fees on persons or other entities participating in 
     the housing loan program under this chapter; and
       ``(4) All other amounts received by the Secretary on or 
     after October 1, 1997, incident to housing loan operations 
     under this chapter including, but not limited to, collections 
     of principal and interest, proceeds from the sale, rental, 
     use, or other disposition of property acquired under this 
     chapter, proceeds from the sale of loans pursuant to sections 
     3720(h) and 3733(a)(3), and penalties collected pursuant to 
     section 3710(g)(4)(B).
       ``(d) For purposes of this section, the term `housing loan' 
     shall not include a loan made pursuant to subchapter V of 
     this chapter.''.
       (c) The amendments made by this section shall take effect 
     October 1, 1997.

     SEC. 7. EXTENSION OF PILOT PROGRAM FOR DIRECT LOANS TO NATIVE 
                   AMERICAN VETERANS.

       Section 3761(c) is amended by striking out ``1997.'' and 
     inserting in lieu thereof ``1999.''.

     SEC. 8. CONFORMING AMENDMENTS.

       (a) Section 2106(e) is amended by striking out ``either the 
     direct loan or loan guaranty revolving fund established by 
     section 3723 or 3724 of this title, respectively.'' and 
     inserting in lieu thereof ``the Veterans Housing Benefit 
     Program Fund established by section 3722 of this title.''.
       (b) Section 3703(e)(1) is amended by striking out 
     ``3729(c)(1)'' and inserting in lieu thereof ``3729(c)''.
       (c) Section 3711(k) is amended by striking out ``and 
     section 3723 of this title'' both places it appears.
       (d) Section 3720 is amended by striking out subsection (e) 
     in its entirety and inserting in lieu thereof--
       ``(e) [Repealed.]''.
       (e) Section 3727(c) is amended by striking out ``funds 
     established pursuant to sections 3723 and 3724 of this title, 
     as applicable.'' and inserting in lieu thereof ``fund 
     established pursuant to section 3722 of this title.''.

[[Page S6909]]

       (f) Section 3733(a)(6) is amended by--
       (1) striking out ``Department of Veterans Affairs Loan 
     Guaranty Revolving'' and inserting in lieu thereof ``Veterans 
     Housing Benefit Program''; and
       (2) striking out ``3724(a)'' and inserting in lieu thereof 
     ``3722(a)''.
       (g) Section 3733 is further amended by striking out 
     subsection (e) in its entirety.
       (h) Section 3734 is amended by--
       (1) striking out, in the catchline, ``Loan Guaranty 
     Revolving Fund and the Guaranty and Indemnity'' and inserting 
     in lieu thereof ``Veterans Housing Benefit Program'';
       (2) striking out, in subsection (a)(1), ``Loan Guaranty 
     Revolving Fund and the Guaranty and Indemnity'' and inserting 
     in lieu thereof ``Veterans Housing Benefit Program'';
       (3) striking out, in subsection (a)(2), ``funds,'' and 
     inserting in lieu thereof ``fund,'';
       (4) striking out, in subsection (b), ``each'' and inserting 
     in lieu thereof ``the''; and
       (5) striking out, in paragraph (2) of subsection (b), 
     subparagraphs (B), (C), and (D) in their entirety, and 
     redesignating subparagraphs (E), (F), and (G) as (B), (C), 
     and (D), respectively.
       (i) Section 3735(a)(3)(A)(i) is amended by striking out 
     ``Loan Guaranty Revolving Fund and the Guaranty and 
     Indemnity'' and inserting in lieu thereof ``Veterans Housing 
     Benefit Program''.
       (j) The catchline for section 3763 is amended by striking 
     out ``Housing'' and inserting in lieu thereof ``Native 
     American veteran housing''.
       (k) The table of sections for subchapter III of chapter 37 
     is amended by--
       (1) striking out the items relating to sections 3722, 3723, 
     3724, 3725, and 3726 and inserting in lieu thereof--

``3722. Veterans Housing Benefit Program Fund.
``[3723. Repealed.]
``[3724. Repealed.]
``[3725. Repealed.]
``[3726. Repealed.]'';

       (2) striking out, in the item relating to section 3734, 
     ``Loan Guaranty Revolving Fund and the Guaranty and 
     Indemnity'' and inserting in lieu thereof ``Veterans Housing 
     Benefit Program''; and
       (3) inserting at the end thereof the following new item:

``3736. Portfolio Loan Servicing.''.

       (l) The table of sections for subchapter V of chapter 37 is 
     amended by striking out, in the item related to section 3763, 
     ``Housing'' and inserting in lieu thereof ``Native American 
     veteran housing''.
       (m) Section 7(h)(2)(B) of Public Law 102-54, as amended (38 
     U.S.C. 1718 note), is amended by striking out ``Loan Guaranty 
     Revolving'' and inserting in lieu thereof ``Veterans Housing 
     Benefit Program''.
                                                                    ____


                      SECTION-BY-SECTION ANALYSIS

       Sec. 1. Subsection (a) provides that the draft bill may be 
     cited as the ``Veterans' Housing Loan Improvements Act of 
     1997.''
       Subsection (b) provides that, unless otherwise specified, 
     whenever in the 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.
       Sec. 2. Subsection (a) of section 2 would replace the 
     existing section 3729, which imposes fees on most persons 
     obtaining or assuming a loan guaranteed or made by VA, with 
     new, simplified language. The new section 3729 would contain 
     an easy to read chart showing the appropriate fee depending 
     on the type of loan and category of borrower.
       The revised section would make permanent the increases in 
     the fees enacted by section 12007 of the Omnibus Budget 
     Reconciliation Act of 1993 (OBRA 93). That enactment 
     increased the fees for most VA guaranteed housing loans by 75 
     basis points, or 0.75 percent of the loan amount, and imposed 
     a fee of 3 percent of the loan on most veterans who had 
     previously obtained a VA housing loan. These provisions are 
     now set to expire on September 30, 1998.
       In addition, the revised section 3729 increases the fee 
     from 1.00 to 2.25 percent on loans made by VA in connection 
     with the sale of VA-owned properties (vendee loans). Vendee 
     loans are available to members of the public and are not a 
     veterans benefit. This new fee would be set at the maximum 
     initial mortgage insurance premium that the Federal Housing 
     Administration (FHA) is permitted to charge for most single 
     family mortgages. FHA also charges annual premiums that would 
     not be authorized for VA. This section would also give VA 
     discretion to issue regulations changing the fee charged for 
     vendee loans if VA finds that a different amount is necessary 
     so that this fee is consistent with the fees charged by other 
     departments for similar loans, or if the Secretary determines 
     that considerations of the market for properties sold by VA 
     necessitate a different fee.
       Except as noted above, the fee structure remains unchanged. 
     The exemption from the fee in the current law given to 
     certain disabled veterans and surviving spouses remains 
     unchanged.
       Subsection (b) would make the increased fee for vendee 
     loans apply to all loans closed on or after October 1, 1997.
       Sec. 3. Section 3 would repeal paragraph (11) of section 
     3732(c). This would make the no-bid formula permanent. As 
     amended by section 12006 of OBRA 93, the no-bid formula 
     requires VA to consider, in addition to other costs, VA's 
     loss on the resale of the property. The no-bid formula 
     currently applies to all loans closed before October 1, 1998, 
     regardless of the date the loan is terminated. This amendment 
     would repeal the sunset.
       Sec. 4. Section 4 would make permanent VA's authority, 
     contained in 38 U.S.C. Sec. 3720(h), to guarantee the 
     certificates sold to investors when VA vendee loans are 
     securitized. Since June 1988, vendee loans have been sold to 
     a trust, which issues securities based on the pooled loans. 
     Prior to the enactment of Public Law 102-291 in 1992, VA 
     provided a full faith and credit guaranty on the vendee loans 
     sold to the trust. VA could not, however, directly guarantee 
     the certificates issued by the trust. Guaranteeing the 
     certificates rather than the loans significantly increases 
     the VA's net proceeds from such sales, but does not 
     significantly change VA's exposure to loss. VA's authority to 
     guarantee the certificates currently has a sunset of December 
     31, 1997.
       Sec. 5. Section 5 would repeal section 3726. Section 3726 
     currently prohibits VA, in most cases, from offsetting 
     against Federal payments, other than VA benefits, debts owed 
     to the Government resulting from the foreclosure of VA 
     guaranteed or direct housing loans. This provision would 
     permit VA to collect these debts by offsetting Federal 
     salaries and income tax refunds as permitted by other Federal 
     debt collection laws. The right of veterans to challenge the 
     existence and amount of the debt through VA's normal 
     administrative process, including review by the Court of 
     Veterans Appeals, and to seek waiver of the debt under 
     current law would not be altered.
       Sec. 6. Section 6 would consolidate the funding sources for 
     the VA housing loan programs (except the pilot program for 
     direct loans to native American Veterans) into a new fund in 
     the Treasury.
       Subsection (a) would repeal sections 3723, 3724, and 3725 
     which provide for the Direct Loan Revolving Fund (DLRF), the 
     Loan Guaranty Revolving Fund (LGRF), and the Guaranty and 
     Indemnity Fund (GIF), respectively. Those three funds 
     currently provide the source of moneys for the VA housing 
     loan programs (except the pilot program for direct loans to 
     Native American veterans).
       Subsection (b) would add a new section 3722 which would 
     establish in the Treasury a new fund to be known as the 
     ``Veterans Housing Benefit Program Fund.'' This new fund, 
     consistent with the Federal Credit Reform Act of 1990, would 
     be available, without fiscal year limitation, for all VA 
     housing loan operations (except the pilot program for direct 
     loans to Native American veterans).
       The total available balances of the DLRF, LGRF, and GIF as 
     of September 30, 1997, would be deposited into this new fund. 
     Beginning October 1, 1997, all appropriations to the VA 
     housing loan program would go into this new fund. In 
     addition, beginning on that date, the new Veterans Housing 
     Benefit Program Fund would receive all income from the loan 
     program including, but not limited to, loan repayments, 
     income from the sale, rental, or other use of acquired 
     foreclosed properties, income from the sale of loans, and 
     loan user fees.
       Subsection (c) would make this section effective October 1, 
     1997.
       Sec. 7. Section 7 would extend for two years; i.e., until 
     September 30, 1999, the sunset for VA's pilot program 
     (sections 3761-3764) to make direct loans to Native American 
     veterans living on trust land.
       Sec. 8. Section 8 would make conforming amendments to 
     various sections of title 38 and other statutes.
       Subsection (a) would make a conforming amendment to section 
     2106(e).
       Subsection (b) would make a conforming amendment to section 
     3703(e)(1).
       Subsection (c) would make a conforming amendment to section 
     3711(k).
       Subsection (d) would repeal the obsolete subsection (e) of 
     section 3720. That subsection authorized VA to sell 
     participation certificates in connection with the Federal 
     National Mortgage Association. Such certificates have not 
     been sold since the 1960s and all outstanding certificates 
     have been redeemed.
       Subsection (e) would make a conforming amendment to section 
     3727(c).
       Subsection (f) would make conforming amendments to section 
     3733(a)(6).
       Subsection (g) would also remove the obsolete section 
     3733(e). That provision, pertaining to the crediting of the 
     proceeds from the sale of loans by VA, was repealed by 
     implication by the Federal Credit Reform Act of 1990.
       Subsection (h) would make conforming amendments to section 
     3734. It would also strike out the requirement for VA to 
     report to the Congress regarding Government credits and 
     investment income to the GIF, which were repealed by 
     implication by the Federal Credit Reform Act of 1990.
       Subsection (i) would make a conforming amendment to section 
     3735(a)(3)(A)(i).
       Subsection (j) would make a technical correction to the 
     catchline for section 3763.
       Subsection (k) would make conforming amendments to the 
     table of sections for subchapter III of chapter 37.
       Subsection (l) would make a conforming amendment to the 
     table of sections for subchapter V of chapter 37.
       Subsection (m) would make a conforming amendment to section 
     7(h)(2)(B) of Public Law 102-54, as amended, (38 U.S.C. 
     Sec. 1718 note).

[[Page S6910]]

     
                                                                    ____
                            The Secretary of Veterans Affairs,

                                     Washington, DC, June 4, 1997.
     Hon. Albert Gore, Jr.,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: There is transmitted herewith a draft 
     bill ``[t]o amend title 38, United States Code, to make 
     certain improvements in the housing loan programs for 
     veterans and eligible persons, and for other purposes.'' I 
     request that this bill be referred to the appropriate 
     committee for prompt consideration and enactment.
       This measure, entitled the ``Veterans' Housing Loan 
     Improvements Act of 1997,'' would make amendments to the 
     Department of Veterans Affairs' housing loan programs that 
     would save costs, provide management efficiencies, and extend 
     the sunset on two expiring authorities.
       The draft bill would permanently extend several cost-saving 
     measures originally enacted by the Omnibus Budget 
     Reconciliation Act (OBRA) of 1993, increase the funding fee 
     for ``vendee'' loans available to the general public, 
     consolidate the funding for the housing loan program into one 
     new account, and permit VA to collect housing loan debts 
     through offset against other Federal payments in the same 
     manner as all other Federal debts are now being collected. 
     The bill would also make permanent VA's enhanced vendee loan 
     sales authority, and extend for 2 years the pilot program for 
     direct loans to Native American veterans.
       A detailed section-by-section analysis of the draft bill is 
     enclosed.
       VA estimates that enactment of the draft bill would produce 
     first year loan subsidy savings of approximately $156 million 
     in FY 1998 and $3.283 billion over five years. Extending the 
     OBRA 93 provisions, increasing the fee on vendee loans, and 
     allowing VA to collect housing loan debts by setoff will 
     produce subsidy savings. There is no additional subsidy 
     appropriation required to extend the pilot program for direct 
     loans to Native American veterans since the program has not 
     fully expended the subsidy initially appropriated by Public 
     Law 102-389.
       The Office of Management and Budget advises that there is 
     no objection to the submission of this draft bill to the 
     Congress, and that it's enactment would be in accord with the 
     Administration's program.
           Sincerely,
                                                      Jesse Brown.
       Enclosures.
                                 ______
                                 
      By Mr. SPECTER (by request):
  S. 987. A bill to amend title 38, United States Code, to authorize a 
cost-of-living adjustment in the rates of disability compensation for 
veterans with service-connected disabilities and dependency and 
indemnity compensation for survivors of such veterans and to revise and 
improve certain veterans compensation, pension, and memorial affairs 
programs; and for other purposes; to the Committee on Veterans' 
Affairs.


   the veterans' compensation cost-of-living adjustment and benefits 
                    program improvement act of 1997

  Mr. SPECTER. Mr. President, as chairman of the Committee on Veterans' 
Affairs, I have today introduced, at the request of the Secretary of 
Veterans' Affairs, S. 987, the proposed Veterans' Compensation Cost-of-
Living Adjustment and Benefits Program Improvement Act of 1997. The 
Secretary of Veterans Affairs submitted this legislation to the 
President of the Senate by letter dated May 9, 1997.
  My introduction of this measure is in keeping with the policy which I 
have adopted of generally introducing--so that there will be specific 
bills to which my colleagues and others may direct their attention and 
comments--all administration-proposed draft legislation referred to the 
Committee on Veterans' Affairs. Thus, I reserve the right to support or 
oppose the provisions of, as well as any amendment to, this 
legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record, together with the transmittal letter which 
accompanied it.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 987

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

     SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
                   CODE.

       (a) Short Title.--This Act may be cited as the ``Veterans' 
     Compensation Cost-of-Living Adjustment and Benefit Programs 
     Improvement Act of 1997''.
       (b) References.--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--COMPENSATION AND PENSIONS

     SEC. 101. INCREASE IN COMPENSATION RATES AND LIMITATIONS.

       (a) In General.--(1) The Secretary of Veterans Affairs 
     shall, as provided in paragraph (2), increase, effective 
     December 1, 1997, the rates of and limitations on Department 
     of Veterans Affairs disability compensation and dependency 
     and indemnity compensations.
       (2) The Secretary shall increase each of the rates and 
     limitations in sections 1114, 1115(1), 1162, 1311, 1313, and 
     1314 of title 38, United States Code, that were increased by 
     the amendments made by the Veterans' Compensation Cost-of-
     Living Adjustment Act of 1996 (Public Law 104-263; 110 Stat. 
     3212). This increase shall be made in such rates and 
     limitations as in effect on November 30, 1997, and shall be 
     by the same percentage that benefit amounts payable under 
     title II of the Social Security Act (42 U.S.C. 401 et seq.) 
     are increased effective December 1, 1997, as a result of a 
     determination under section 215(i) of such Act (42 U.S.C. 
     415(i)).
       (b) Special Rule.--The Secretary may adjust 
     administratively, consistent with the increases made under 
     subsection (a)(2), the rates of disability compensation 
     payable to persons within the purview of section 10 of Public 
     Law 85-857 (72 Stat. 1263) who are not in receipt of 
     compensation payable pursuant to chapter 11 of title 38, 
     United States Code.
       (c) Publication Requirement.--At the same time as the 
     matters specified in section 215(i)(2)(D) of the Social 
     Security Act (42 U.S.C. 415(i)(2)(D)) are required to be 
     published by reason of a determination made under section 
     215(i) of such Act during fiscal year 1998, the Secretary 
     shall publish in the Federal Register the rates and 
     limitations referred to in subsection (a)(2) as increased 
     under this section.

     SEC. 102. ROUNDING DOWN OF COMPENSATION-RATE INCREASES

       In computing rates and limitations pursuant to legislation 
     enacted for fiscal years 1998 and thereafter which increases 
     by a specified percentage, or which directs the Secretary of 
     Veterans Affairs to adjust administratively, the rates and 
     limitations in sections 1114, 1115(1), 1162, 1311, 1313, and 
     1314 of title 38, United States Code, the Secretary of 
     Veterans Affairs shall round down to the next lower whole-
     dollar amount any amount which as so computed is not an even 
     multiple of $1.

     SEC. 103. EXTENSION OF INCOME-VERIFICATION AUTHORITY.

       (a) Section 5317 is amended by striking out subsection (g).
       (b) Subparagraph (D) of section 6103(1)(7) of the Internal 
     Revenue Code of 1986 (relating to disclosure of return 
     information to Federal, State, and local agencies 
     administering certain programs) is amended by striking 
     ``Clause (viii) shall not apply after September 30, 1998.''.

     SEC. 104. EXTENSION OF LIMITATION ON PENSION FOR CERTAIN 
                   RECIPIENTS OF MEDICAID-COVERED NURSING HOME 
                   CARE.

       Section 5503(f) is amended by striking out paragraph (7).

     SEC. 105. PROHIBITION REGARDING PAYMENT OF COMPENSATION FOR 
                   DISABILITY OR DEATH DUE TO TOBACCO USE.

       (a) Service Connection.--Chapter 11 is amended by adding at 
     the end of subchapter I the following new section:

     ``Sec. 1103. Special provisions relating to claims based upon 
       effects of tobacco products

       ``(a) Notwithstanding any other provision of law, a 
     veteran's disability or death shall not be considered to have 
     resulted from personal injury suffered or disease contracted 
     in line of duty in the active military, naval, or air service 
     for purposes of this title on the basis that it resulted from 
     injury or disease attributable in whole or in part to the use 
     of tobacco products by the veteran during the veteran's 
     service.
       ``(b) Nothing in subsection (a) shall be construed as 
     precluding the establishment of service connection for 
     disability or death from a disease or injury which became 
     manifest or was aggravated in active military, naval or air 
     service or became manifest to the requisite degree of 
     disability during any applicable presumptive period specified 
     in section 1112 or 1116 of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 11 is amended by adding the following 
     new item after the item relating to section 1102: ``1103. 
     Special provisions relating to claims based upon effects of 
     tobacco products.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to claims filed after the date of enactment of 
     this Act.

     SEC. 106. REIMBURSEMENT OF COSTS ASSOCIATED WITH COMPENSATION 
                   AND PENSION MEDICAL EXAMINATIONS.

       (a) Authorization.--Chapter 77 of title 38, United States 
     Code, is amended by adding at the end of subchapter I the 
     following new section:

     ``7705. Reimbursement for compensation and pension medical 
       examinations

       ``(a) Reimbursement.--The Under Secretary for Benefits is 
     authorized to reimburse the Veterans Health Administration 
     for costs associated with the conduct of medical examinations 
     requested by the Veterans Benefits Administration in 
     connection with claims for benefits under this title.
       ``(b) Source of Funds.--Reimbursements under this section 
     shall be made from amounts available to the Secretary of 
     Veterans Affairs for payment of general operating 
     expenses.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 77 is amended by adding the following 
     new item after the item relating to section 7703: ``7705.

[[Page S6911]]

     Reimbursement for compensation and pension medical 
     examinations.''.

                       TITLE II--MEMORIAL AFFAIRS

     SEC. 201. STATE CEMETERY GRANTS PROGRAM.

       (a)(1) Amount of Grant Relative to Project Cost.--Section 
     2408(b) is amended by striking out paragraphs (1) and (2) and 
     inserting in lieu thereof the following:
       ``(1) The amount of any grant under this section may not 
     exceed--
       ``(A) in the case of the establishment of a new cemetery, 
     the total of--
       ``(i) the cost of improvements to be made on the land to be 
     converted into a cemetery, and
       ``(ii) the initial cost of equipment necessary to operate 
     the cemetery; or
       ``(B) in the case of the expansion or improvement of an 
     existing cemetery, the total of--
       ``(i) the cost of improvements to be made on any land to be 
     added to the cemetery, and
       ``(ii) the cost of any improvements to be made to the 
     existing cemetery.
       ``(2) If the amount of a grant under this section is less 
     than the amount of costs referred to in paragraph (1), the 
     State receiving the grant shall contribute the amount by 
     which the costs exceed the grant, in addition to any land 
     acquired or dedicated by the State for the cemetery.''.
       (2) Effective Date.--The amendment made by this subsection 
     shall become effective 60 days after the date of enactment of 
     this Act.
       (b) Authorization of No-Year Appropriations.--Section 
     2408(d) is amended by striking out ``the end of the second 
     fiscal year following the fiscal year for which they are 
     appropriated'' and inserting in lieu thereof ``expended''.
                                                                    ____



                            The Secretary of Veterans Affairs,

                                      Washington, DC, May 9, 1997.
     Hon. Albert Gore, Jr.,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: Transmitted herewith is a draft bill, 
     the ``Veterans' Compensation Cost-of-Living Adjustment and 
     Benefit programs Improvement Act of 1997,'' to authorize a 
     cost-of-living adjustment (COLA) for fiscal year (FY) 1998 in 
     the rates of disability compensation and dependency and 
     indemnity compensation (DIC), and to revise and improve 
     certain veterans compensation, pension, and memorial affairs 
     programs, and for other purposes. I request that this draft 
     bill be referred to the appropriate committee for prompt 
     consideration and enactment.
       Section 101 of the draft bill would direct the Secretary of 
     Veterans Affairs to increase administratively the rates of 
     compensation for service-disabled veterans and of DIC for the 
     survivors of veterans whose deaths are service related, 
     effective December 1, 1997. The rate of increase would be the 
     same as the COLA that will be provided under current law to 
     veterans' pension and Social Security recipients, which is 
     currently estimated to be 2.7 percent. We believe this 
     proposed COLA is necessary and appropriate in order to 
     protect the benefits of these most deserving recipients from 
     the eroding effects of inflation. We estimate that enactment 
     of this section, in conjunction with section 102 of this 
     draft bill, would result in benefit costs of $330.7 million 
     during FY 1998 and $1.94 billion over the five-year period 
     beginning in FY 1998. The costs associated with the 
     compensation COLA are considered to be part of the 
     compensation baseline and not subject to the pay-as-you-go 
     provisions of the Omnibus Budget Reconciliation Act of 1990.
       Section 102 would require the Secretary of Veterans 
     Affairs, in computing new rates of (or limitations affecting) 
     disability compensation and DIC pursuant to the enactment of 
     any legislation requiring the Secretary to increase such 
     rates to provide a COLA for fiscal year 1998 and thereafter, 
     to round down to the next lower whole dollar any rate that is 
     not evenly divisible by one dollar. This proposal is 
     consistent with the congressionally-mandated calculation 
     methods applied to COLA's for fiscal years 1994, 1995, and 
     1996. We estimate this proposal would reduce FY 1998 benefit 
     cost associated with the COLA proposed in section 101 of this 
     draft bill by $17 million and reduce the five-year benefit 
     cost for FY 1998 through FY 2002 by $287 million, as 
     compared to the cost of the COLA and future COLAs based on 
     rounding odd dollar amounts to the nearest whole dollar. 
     The savings are subject to the pay-as-you-go provisions of 
     the Omnibus Budget Reconciliation Act of 1990.
       Section 103 would amend titles 26 and 38 of the United 
     States Code to make permanent the authority of the Department 
     of Veterans Affairs (VA) to access unearned income 
     information from the Internal Revenue Services (IRS) and 
     wage, self-employment, and retirement income information from 
     the Social Security Administration (SSA) for purposes of 
     income verification in determining eligibility for VA means-
     tested benefits such as pension and medical care for certain 
     non-service-related illnesses or conditions.
       Experience has shown that authority to match unearned 
     income information from IRS and wage, self-employment, and 
     retirement income information from SSA with VA data for 
     purposes of income verification in determining eligibility 
     for or the proper amount of VA means-tested benefits has been 
     an effective savings measure and has had a significant 
     program-abuse deterrent effect. We estimate that enactment of 
     this proposal would result in savings in monetary benefits of 
     $10 million in FY 1999 and $120 million during the four-year 
     period beginning in FY 1999. These savings are subject to the 
     pay-as-you-go provisions of the Omnibus Budget Reconciliation 
     Act of 1990.
       Section 104 should amend section 5503(f) of title 38, 
     United States Code, to make permanent the $90 limitation on 
     monthly VA pension payments that may be made to 
     beneficiaries, without dependents, who are receiving 
     Medicaid-covered nursing-home care. The current payment 
     limitation, which is due to expire at the end of fiscal year 
     1998, works to the advantage of these nursing-home residents 
     because it permits them to keep the $90 to apply toward 
     personal expenses rather than have it ``pass through'' to the 
     Medicaid program. This section would simply remove the 
     existing September 30, 1998, expiration date for section 
     5503(f). We estimate this proposal would result in 
     government-wide savings because a beneficiary's nursing-home 
     care costs, previously paid for with VA pension benefits, 
     would be paid for by the Medicaid program, which shares a 
     portion of the costs with the States. Government-wide savings 
     are estimated to be $206 million in FY 1999 and a total of 
     $893 million during the four-year period beginning in FY 
     1999.
       Under current law, direct service connection of a 
     disability or death may be established if the evidence 
     establishes that injury or disease resulted from tobacco use 
     in line of duty in the active military, naval, or air 
     service, notwithstanding that the disability or death did 
     not occur until after service and expiration of any 
     applicable presumptive period. Section 105 would amend 
     tile 38, United States Code, by adding a new section that 
     would have the effect of prohibiting service connection of 
     a death or disability on the basis that it resulted from 
     injury or disease attributable, in whole or in part, to 
     the use of tobacco products by the veteran during the 
     veteran's service. This amendment is consistent with the 
     1990 budget reconciliation act, in which Congress 
     prohibited compensation for disabilities which are the 
     result of veterans' abuse of alcohol and drugs. This was 
     fiscally responsible action which enhanced the integrity 
     of our compensation program, and our proposal regarding 
     tobacco use is offered in that same spirit. In addition, 
     claims based upon tobacco-related disorders present 
     medical and legal issues which could impede ongoing 
     efforts to speed claim processing by placing significant 
     additional demands on the adjudicative system. This 
     provision would not preclude establishment of service 
     connection for disability or death from a disease or 
     injury which became manifest or was aggravated during 
     active service or became manifest to the requisite degree 
     of disability during any applicable presumptive period 
     specified in section 1112 or 1116 of title 38, United 
     States Code. This amendment would apply to claims filed 
     after the date of its enactment.
       This provision would result in some level of benefit cost 
     avoidance and avoid potential delays in claim processing 
     resulting from increased workload.
       Section 106 would authorize the Veterans Benefits 
     Administration (VBA) to reimburse, from the general operating 
     expenses account, the Veterans Health Administration (VHA) 
     for the cost of medical examinations conducted with respect 
     to veterans' claims for compensation or pension. Currently, 
     such examinations are paid for out of VA's medical-care fund.
       In order to assure the funding for compensation and pension 
     medical examinations is available throughout FY 1998, 
     appropriate language would need to be included in both the 
     ``Medical care'' and ``General operating expenses'' 
     appropriations. It is contemplated that VBA will enter into a 
     memorandum of understanding with VHA to provide that, should 
     funds budgeted under general operating expenses for the 
     purpose of ``purchasing'' compensation and pension medical 
     examinations prove insufficient, alternate funding under 
     ``Medical care'' would be available to permit VHA to continue 
     to provide these examinations. Medical care funds would be 
     used for this purpose only in the event of a shortfall in 
     general operating expenses. There are no costs or savings 
     associated with this proposal.
       Section 201(a) would amend section 2408(b) of title 38, 
     United States Code, to make state cemetery grants more 
     attractive to States. Section 2408 authorizes the Secretary 
     of Veterans Affairs to make grants to States to assist them 
     in establishing, expanding, or improving State veterans' 
     cemeteries. Currently, the amount of a State cemetery grant 
     is limited to 50 percent of the total of the value of the 
     land to be acquired or dedicated for a cemetery and the cost 
     of improvement to be made on the land. The remaining amount 
     must be contributed by the State receiving the grant. 
     Pursuant to the amendments proposed in this section, the 
     amount of a State cemetery grant could not exceed, in the 
     case of the establishment of a new cemetery, the total of the 
     cost of improvements to be made on land to be converted into 
     a cemetery and the initial cost of equipment necessary to 
     operate the cemetery. In the case of the expansion or 
     improvement of an existing cemetery, the amount of the grant 
     could not exceed the total of the cost of improvements to be 
     made on any land to be added to the cemetery combined with 
     the cost of improvements to be made to the existing cemetery. 
     If the amount of a grant should, for any reason, be less than 
     the amount of those costs, the State receiving the grant 
     would be required

[[Page S6912]]

     to contribute the remaining amount, in addition to providing 
     any land necessary for the cemetery project.
       Also, under current law, if at the time of a grant the 
     State receiving the grant dedicates for the cemetery land 
     which it already owns, the value of the land may constitute 
     up to 50 percent of the State's contribution. Once that land 
     value is so used, it may not constitute part of the State's 
     contribution for any subsequent grant under section 2408. 
     Under the amendments proposed in section 201(a) of this draft 
     bill, a State would be responsible for providing any land 
     required for a cemetery project, since the grant amount would 
     not longer be based partly on the value of land to be 
     acquired or dedicated for a cemetery.
       We believe that excluding the value of land to be acquired 
     for a cemetery from the basis of a grant would encourage 
     states to be active partners in the cemetery grants program. 
     In our experience, no State has acquired land for a cemetery 
     in connection with a grant under section 2408. In every case, 
     the State has dedicated land that was donated or transferred 
     for that purpose, or land that it already owned. Further, any 
     reduction of the basis from which a grant is calculated may 
     be offset by an increase from 50 percent to up to 100 percent 
     in the proportion of the amount of a project's cost that 
     could be assumed by the Federal Government. Moreover, since, 
     under the proposal, a grant may cover the entire cost of 
     improvements (and initial cost of equipment in certain 
     cases), a State may not have to contribute cash toward the 
     initial cost of a project.
       Another feature that would make grants more attractive to 
     States is the inclusion in the basis of a grant of the 
     initial cost of equipment necessary to operate the cemetery. 
     Providing funds to acquire the equipment necessary to operate 
     a cemetery will, we believe, be a critical financial 
     incentive to encourage States to establish new cemeteries. 
     Such equipment is as essential to the establishment of an 
     operational cemetery as are the land and the improvements 
     made on it. However, because our proposed amendment includes 
     only the initial cost of equipment for the establishment of a 
     cemetery, the State would retain the responsibility for long-
     term maintenance and operation of the cemetery, including 
     costs associated with the acquisition of replacement 
     equipment. Each Federal grant would assist in the 
     establishment and activation of new veterans' cemeteries, or 
     in the expansion or improvement of existing cemeteries, but 
     the States would bear the costs of continuing operation and 
     long-term maintenance.
       Section 201(b) of the draft bill would authorize ``no-
     year'' appropriations for the State cemetery grants program. 
     Under current 38 U.S.C. Sec. 2408(d), funds appropriated for 
     State cemetery grants remain available only until the end of 
     the second fiscal year following the fiscal year for which 
     they are appropriated. However, in Public Law No. 104-204, 
     110 Stat. 2874 (1996), Congress appropriated funds for State 
     cemetery grants, ``to remain available until expended.'' 
     Section 201(b) would amend section 2408(d) to reflect this 
     no-year-funding policy.
       The Office of Management and Budget advises that there is 
     no objection to the submission of this draft bill to the 
     Congress, and that its enactment would be in accord with the 
     Administration's program.
           Sincerely yours,
                                                      Jesse Brown.
                                 ______
                                 
      By Mr. SPECTER (by request):
  S. 988. A bill to amend chapter 72 of title 38, United States Code, 
to reform the retirement provisions relating to the Court's judicial 
component, to provide for a staggered judicial retirement option to 
avoid the large case backlog increase that would arise in the event of 
simultaneous judicial vacancies, to rename the United States Court of 
Veterans Appeals as the United States Court of Appeals for Veterans 
Claims, and for other purposes; to the Committee on Veterans' Affairs.


            the court of veterans appeals amendments of 1997

  Mr. SPECTER. Mr. President, as chairman of the Committee on Veterans' 
Affairs, I have today introduced, at the request of the chief judge, 
U.S. Court of Veterans Appeals, S. 988, the proposed Court of Veterans 
Appeals Amendments of 1997. The chief judge submitted this proposed 
legislation to me, as chairman of the Committee on Veterans' Affairs, 
by letter dated June 16, 1997.
  My introduction of this measure is in keeping with the policy which I 
have adopted of generally introducing--so that there will be specific 
bills to which my colleagues and others may direct their attention and 
comments--proposed draft legislation referred to the Committee on 
Veterans' Affairs by the chief judge, Court of Veterans Appeals. Thus, 
I reserve the right to support or oppose the provisions of, as well as 
any amendment to, this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record, together with the transmittal letter and the 
enclosed summary and explanation of the draft legislation which 
accompanied it.
  There being no obligation, the material was ordered to be printed in 
the Record, as follows:

                                 S. 988

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

     SEC. 1. SHORT TITLE.

       This Act may be cited as the ``Court of Veterans Appeals 
     Amendments of 1997''.

                         TITLE I--COMPARABILITY

     SEC. 101. AUTHORITY TO PRESCRIBE RULES AND REGULATIONS.

       Section 7254 of title 38, United States Code, in amended by 
     adding at the end thereof the following new subsection:
       ``(f) The Court shall have the authority to prescribe rules 
     and regulations that are necessary or appropriate to carry 
     out the provisions of subchapters III and V of chapter 72 of 
     this title and that are consistent with such chapter and any 
     other applicable provision of law.''.

     SEC. 102. CALCULATION OF YEARS OF SERVICE AS A JUDGE.

       Section 7296(b) of title 38, United States code, is amended 
     by adding at the end thereof the following new paragraph:
       ``(4) For purposes of calculating the years of service of 
     an individual under this subsection and subsection (c), only 
     those years of service as a judge of the Court shall be 
     credited, and that portion of the aggregate number of years 
     of such service that is a fractional part of 1 year shall not 
     be credited if it is less than 6 months, and shall be 
     credited if it is 6 months or more.''.

     SEC. 103. LIMITATION ON COST-OF-LIVING ADJUSTMENT TO RETIRED 
                   PAY.

       Section 7296 of title 38, United States Code, is amended by 
     adding at the end thereof the following new subsection:
       ``(l) Notwithstanding any other provision of law, cost-of-
     living adjustments made or accruing to any retired pay that 
     is paid under this section shall not result in such retired 
     pay exceeding the rate of pay in effect under section 7253(e) 
     of this title for a judge performing active service.''.

     SEC. 104. SURVIVOR ANNUITIES.

       (a) Election To Participate.--Section 7297(b) of title 38, 
     United States Code, is amended in the first sentence by 
     inserting before the period ``or within 6 months after the 
     date on which the judge marries if the judge has retired 
     under section 7296 of this title''.
       (b) Reduction of Contributions of Active Judges.--(1) 
     Section 7297(c) of title 38, United States Code, is amended 
     by striking out ``3.5 percent of the judge's pay'' and 
     inserting in lieu thereof ``2.2 percent of the judge's salary 
     received under section 7253(e) of this title, 3.5 percent of 
     the judge's retired pay received under section 7296 of this 
     title when the judge is not serving in recall status under 
     section 7257 of this title, and 2.2 percent of the judge's 
     retired pay received under such section 7296 when the judge 
     is serving in recall status under such section 7257''.
       (2) The amendment made by this subsection shall take effect 
     on the first day of the first pay period beginning on or 
     after January 1, 1995.
       (c) Interest Payments.--Section 7297(d) of title 38, United 
     States Code, is amended--
       (1) by inserting ``(1)'' after ``(d)''; and
       (2) by adding at the end thereof the following new 
     paragraph:
       ``(2) If a judge has previously performed a period of 
     service as a judge, or has performed service as a judicial 
     official as defined under section 376(a)(1) of title 28, a 
     Member of Congress, or a congressional employee, the interest 
     required under the first sentence of paragraph (1) shall not 
     be required for any period--
       ``(A) during which a judge was separated from all such 
     service; and
       ``(B) during which the judge was not receiving retired pay 
     or a retirement annuity based on service as a judge or as a 
     judicial official.''.
       (d) Service Eligibility.--(1) Section 7297(f) of title 38, 
     United States Code, is amended--
       (A) in paragraph (1) in the matter preceding subparagraph 
     (A)--
       (i) by striking out ``at least 5 years'' and inserting in 
     lieu thereof ``at least 18 months''; and
       (ii) by striking out ``last 5 years'' and inserting in lieu 
     thereof ``last 18 months''; and
       (B) by adding at the end thereof the following new 
     paragraph:
       ``(5) If a judge dies as a result of an assassination and 
     leaves a survivor or survivors who are entitled to receive 
     annuity benefits under this section, the matter in paragraph 
     (1) preceding subparagraph (A) shall not apply.''.
       (2) Section 7297(a) of title 38, United States Code, is 
     amended--
       (A) by inserting ``who is in active service or who has 
     retired under section 7296 of this title'' after ``Court'' in 
     paragraph (2);
       (B) by striking ``(c)'' in paragraph (3);
       (C) by redesignating paragraphs (1) through (3) as 
     paragraphs (2) through (4), respectively; and
       (D) by inserting before paragraph (2) (as redesignated by 
     clause (C) of this paragraph) the following new paragraph:
       ``(1) The term `assassination' means the killing of a judge 
     that is motivated by the performance by that judge of the 
     judge's official duties.''.
       (3) Age Requirement of Surviving Spouse.--Section 
     7297(f)(1)(A) of title 38, United States Code, is further 
     amended by

[[Page S6913]]

     striking out ``or following the surviving spouse's attainment 
     of the age of 50 years, whichever is later''.
       (f) COLA for Survivors Annuities.--Section 7297(o) of title 
     38, United States Code, is amended to read as follows:
       ``(o) Each survivor annuity payable from the retirement 
     fund shall be increased at the same time as, and by the same 
     percentage by which, annuities payable from the Judicial 
     Survivors' Annuities Fund are increased pursuant to section 
     376(m) of title 28.''.

     SEC. 105. EXEMPTION OF RETIREMENT FUND FROM SEQUESTRATION 
                   ORDERS

       Section 7298 of title 38, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(g) For purpose of section 255(g)(1)(B) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     Sec. 905(g)(1)(B)), the retirement fund shall be treated in 
     the same manner as the Court of Federal Claims Judges' 
     Retirement Fund.''.

     SEC. 106. LIMITATION ON ACTIVITIES OF RETIRED JUDGES.

       (a) In General.--Chapter 72 of title 38, United States Code 
     (as amended by this Act), is further amended by adding at the 
     end thereof the following new section:

     ``Sec. 7299. Limitation on activities of retired judges

       ``Any judge of the Court of Appeals for Veterans Claims who 
     retires from the Court under section 7296 of this title or 
     under chapter 83 or 84 of title 5 and who thereafter in the 
     practice of law represents (or supervises or directs the 
     representation of) a client in making any civil claim 
     relating to veterans' benefits against the United States or 
     any agency thereof shall forfeit all rights to retired pay 
     under such provisions for any period during which the judge 
     engages in any such activity and for one year immediately 
     following the cessation of such activity.''
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 72 of title 38, United States Code, is 
     amended by adding at the end thereof the following:

``7299. Limitation on activities of retired judges.''.

          TITLE II--STAGGERED RETIREMENT AND RECALL PROVISIONS

     SEC. 201. STAGGERED RETIREMENT.

       (A) Eligibility.--One individual each year shall be 
     eligible to retire under this section starting in the year 
     1999 and ending in the year 2003. An individual is eligible 
     to retire under this section, if the individual, at the 
     time of retirement,
       (1) is an associate judge of the United States Court of 
     Appeals for Veterans Claims (as renamed by Title III of this 
     Act) who has at least 10 years of service creditable under 
     section 7296 of title 38, United States Code;
       (2) has made an election to receive retired pay under 
     section 7296 of such title;
       (3) has at least 20 years of service allowable under 
     section 7297(l) of such title;
       (4) is at least fifty-five years of age;
       (5) has years of age, years of service creditable under 
     section 7296 of such title, and years of service allowable 
     under section 7297(l) of such title not creditable under 
     section 7296 of such title, that total at least 80; and
       (6) has the greatest seniority as a judge of the United 
     States Court of Appeals for Veterans Claims (as renamed by 
     Title III of this Act) of the judges who provide notification 
     in accordance with subsection (b).
       (b) Notification.--A judge who desires to retire under 
     subsection (c) shall provide the President of the United 
     States and the chief judge of the United States Court of 
     Appeals for Veterans Claims (as renamed by Title III of this 
     Act) with written notification to that effect not later than 
     April 1 of any year specified in subsection (a). Such 
     notification shall specify the retirement date in accordance 
     with subsection (c). Notification provided under this 
     subsection shall be irrevocable.
       (c) Retirement.--A judge who is eligible to retire under 
     subsection (a) shall retire during the fiscal year in which 
     notification is provided pursuant to subsection (b), but, in 
     no event, earlier than 90 days after such notification is 
     provided. Notwithstanding any other provision of law, such 
     judge shall be deemed, for all purposes, to be retiring under 
     section 7296(b)(1) of title 38, United States Code, except 
     that, the rate of retired pay for a judge retiring under this 
     section shall, on the date of such judge's separation from 
     service, be equal to the rate described in section 7296(c)(1) 
     of such title multiplied by the percentage represented by the 
     fraction in which the numerator is the sum of the number 
     represented by years of service as a judge of the United 
     States Court of Appeals for Veterans Claims (as renamed by 
     Title III of this Act) creditable under section 7296 of such 
     title and the age of such judge, and the denominator is 80.
       (d) Duty of Actuary.--Section 7298(e)(2) of title 38, 
     United States Code, is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by adding the following new subparagraph:
       ``(C) For purposes of subparagraph (B) of this paragraph, 
     notwithstanding any other provision of law, `present value' 
     includes a value determined by an actuary with respect to a 
     payment that may be made under subsection (b) from the 
     retirement fund within the contemplation of law.''

     SEC. 202. RECALL OF RETIRED JUDGES.

       (a) In General.--Chapter 72 of title 38, United States Code 
     (as amended by section 102 of this Act), is further amended 
     by inserting after section 7256 the following new section:

     ``Sec. 7257. Recall of retired judges of the Court of Appeals 
       for Veterans Claims

       ``(a) A judge of the United States Court of Appeals for 
     Veterans Claims who has retired from the Court under the 
     provisions of section 7296 of this title or the provisions of 
     chapter 83 or 84 of title 5 shall be eligible for recall upon 
     providing the chief judge of the Court of Appeals for 
     Veterans Claims with written notification to that effect. In 
     the event of a vacancy in the position of associate judge of 
     the Court or otherwise as necessary to meet anticipated 
     case workload, the chief judge may recall such a judge 
     upon written certification by the chief judge that 
     substantial service is expected to be performed by the 
     eligible judge for such period as determined by the chief 
     judge to be necessary to meet the needs of the Court, and 
     to which certification the eligible judge agrees in 
     writing.
       ``(b) A judge recalled under this section may exercise all 
     of the powers and duties of the office of a judge in active 
     service.
       ``(c) A judge recalled under this section shall be paid 
     pay, during the period for which the judge serves in recall 
     status, at the rate of pay in effect under section 7253(e) of 
     this title for a judge performing active service, less the 
     amount the judge is paid in retired pay under section 7296 of 
     this title or an annuity under the applicable provisions in 
     chapter 83 or 84 of title 5.
       ``(d) Except as provided in subsection (c), a judge 
     recalled under this section who retired under the applicable 
     provisions of title 5 shall be considered to be a reemployed 
     annuitant under chapter 83 or chapter 84, as applicable, of 
     title 5.
       ``(e) Nothing in this section shall affect the right of a 
     judge who retired under the provisions of chapter 83 or 84 of 
     title 5 to serve otherwise as a reemployed annuitant in 
     accordance with the provisions of title 5.''
       (b) Technical and Conforming Amendments.--The table of 
     sections for chapter 72 of title 38, United States Code (as 
     amended by section 106(b) of this Act), is further amended by 
     inserting after the item relating to section 7256 the 
     following:

``7257. Recall of retired judges of the Court of Veterans Appeals.''.

                     TITLE III--RENAMING PROVISIONS

     SEC. 300. REFERENCES TO TITLE 38, UNITED STATES CODE.

       Except as otherwise expressly provided, whenever in section 
     301 an amendment or repeal is expressed in terms of an 
     amendment, 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.

     SEC. 301. RENAMING OF THE COURT OF VETERANS APPEALS.

       (a) In General.--(1) The United States Court of Veterans 
     Appeals shall hereafter be known and designated as the United 
     States Court of Appeals for Veterans Claims.
       (2) Section 7251 is amended by striking out ``United States 
     Court of Veterans Appeals'' and inserting in lieu thereof 
     ``United States Court of Appeals for Veterans Claims''.
       (b) Conforming Amendments.--
       (1) The following sections are amended by striking out 
     ``Court of Veterans Appeals'' each place it appears and 
     inserting in lieu thereof ``Court of Appeals for Veterans 
     Claims'': sections 5904, 7101(b), 7252(a), 7253, 7254, 7255, 
     7256, 7261, 7262, 7263, 7264, 7266(a)(1), 7267(a), 7268(a), 
     7269, 7281(a), 7282(a), 7283, 7284, 7285(a), 7286, 7291, 
     7292, 7296, 7297, and 7298.
       (2)(A)(i) The heading of section 7286 is amended to read as 
     follows:

     ``Sec. 7286. Judicial Conference of the Court of Appeals for 
       Veterans Claims''.

       (ii) The item relating to section 7286 in the table of 
     sections at the beginning of chapter 72 (as amended by 
     sections 106(b) and 202(b) of this Act) is further amended to 
     read as follows:

``7286. Judicial Conference of the Court of Appeals for Veterans 
              Claims.''.

       (B)(i) The heading of section 7291 is amended to read as 
     follows:

     ``Sec. 7291. Date when Court of Appeals for Veterans Claims 
       decision becomes final''.

       (ii) The item relating to section 7291 in the table of 
     sections at the beginning of chapter 72 (as amended by 
     sections 106(b), 202(b), and subsection (b)(2)A)(ii) of this 
     section) is further amended to read as follows:

``7291. Date when Court of Appeals for Veterans Claims decision becomes 
              final.''.

       (C)(i) The heading of section 7298 is amended to read as 
     follows:

     ``Sec.  7298. Court of Appeals for Veterans Claims Retirement 
       Fund''.

       (ii) The item relating to section 7298 in the table of 
     sections at the beginning of chapter 72 (as amended by 
     sections 106(b), 202(b), and subsection (b)(2)(A)(ii) and 
     (B)(ii) of this section) is further amended to read as 
     follows:

``7298. Court of Appeals for Veterans Claims Retirement Fund.''.

       (3) The item relating to chapter 72 in the table of 
     chapters at the beginning of title 38 and the item relating 
     to such chapter in the table of chapters at the beginning of 
     part V are amended to read as follows:

``72. United States Court of Appeals for Veterans Claims....7251.''....

       (c) Conforming Amendments to Other Laws.--

[[Page S6914]]

       (1) The following provisions of law are amended by striking 
     out ``Court of Veterans Appeals'' each place it appears and 
     inserting in lieu thereof ``Court of Appeals for Veterans 
     Claims'':
       (A) Section 8440d of title 5, United States Code.
       (B) Section 2412 of title 28, United States Code.
       (C) Section 906 of title 44, United States Code.
       (D) Section 109 of the Ethics in Government Act of 1978 (5 
     U.S.C. App.).
       (2)(A) The heading of section 8440d of title 5, United 
     States Code, is amended to read as follows:

     ``Sec. 8440d. Judges of the United States Court of Appeals 
       for Veterans Claims''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 84 of such title is 
     amended to read as follows:

``8440d. Judges of the United States Court of Appeals for Veterans 
              Claims.''.

       (d) Other Legal References.--Any reference in a law, 
     regulation, document, paper, or other record of the United 
     States to the United States Court of Veterans Appeals shall 
     be deemed to be a reference to the United States Court of 
     Appeals for Veterans Claims.
                                                                    ____


Summary and Explanation of Court of Veterans Appeals Amendments of 1997

     Section 1: Short title
       Summary: Section 1 would provide that the short title of 
     the proposed legislation [hereinafter `the Proposal''] is the 
     ``Court of Veterans Appeals Amendments of 1997''.
       Explanation: Self-explanatory.


                         Title I--Comparability

       Title I contains provisions designed to provide 
     comparability in a number of respects between the retirement/
     survivor program applicable to judges of the U.S. Court of 
     Veterans Appeals (to be renamed by section 301 of the 
     Proposal as the U.S. Court of Appeals for Veterans Claims) 
     [hereinafter ``this Court'' or ``the Court''] and the program 
     applicable to judges of other Article I courts. The 
     explanation that follows each section in this title sets 
     forth the comparable provisions that form the basis for the 
     provision in the Proposal. Full comparability is not being 
     proposed with other federal courts because the Court is not 
     requesting elimination of the judge's contribution for 
     participation in the Court retirement program.

                      Section-by-Section Analysis

     Section 101: Authority to prescribe rules and regulations
       Summary: Section 101 would provide to the Court the express 
     authority to prescribe rules and regulations necessary or 
     appropriate to carry out the provisions of subchapters III 
     and V of chapter 72 of title 38, pertaining to the Court's 
     administration and retirement/survivor system. Any rules and 
     regulations prescribed would be required to be consistent 
     with chapter 72 and all other applicable provisions of law.
       Explanation: The Director of the Administrative Office of 
     the United States Courts (Director) has express authority, 
     subject to the supervision of the Judicial Conference of the 
     United States, to regulate a wide range of activities that 
     pertain to Article III, U.S. Court of Federal Claims 
     (Claims), and U.S. Bankruptcy and Magistrate (B&M) Judges.\1\ 
     The Judicial Conference of the United States also has express 
     authority to promulgate rules and regulations.\2\ The U.S. 
     Court of Appeals for the Armed Forces, formerly the U.S. 
     Court of Military Appeals (COMA) [hereinafter so referenced 
     to coordinate with references to ``COMA'' in Dennis W. Snook 
     & Jennifer A. Neisner, Congressional Research Service Report 
     for Congress, Income Protection for Judges of Selected 
     Federal Courts, dated December 29, 1993, (CRS Report)] is 
     located for administrative purposes in the Department of 
     Defense.\3\ Unlike these courts, this Court is a freestanding 
     court in the judicial branch that is independently 
     responsible for its own administration but that presently has 
     no express statutory authority to prescribe rules and 
     regulations.
---------------------------------------------------------------------------
     \1\ Footnotes at end of article.
---------------------------------------------------------------------------
     Section 102: Calculation of years of service as a judge
       Summry: Section 102 would provide that a fractional year of 
     judicial service of less than 6 months would not be credited 
     toward judicial service and that a fractional year of 6 
     months or more of judicial service would be calculated as a 
     full year of service.
       Explanation: This proposal would bring this Court's Judges 
     in lien with Claims and U.S. Tax Court (Tax) Judges and is 
     similar to how fractional years are credited for COMA 
     Judges.\4\
     Section 103: Limitation on cost-of-living adjustment to 
         retired pay
       Summary: Section 103 would provide for a cap on a cost-of-
     living adjustment (COLA) to this Court's judicial retired pay 
     so that it may not exceed active pay.
       Explanation: Article III and Article I Judges who have 
     retired, as well as other federal retirees, have provisions 
     for postretirement increases in their annuities.\5\ The B & M 
     provision is the only existing provision that specifically 
     prohibits an adjusted annuity from exceeding active pay. 
     Section 103 adopts this restriction.\6\ Although section 103 
     would permit COLA to accrue, the accrued COLA could not be 
     paid unless the level of active pay permitted it.\7\
     Section 104: Survivor annuities
       Summary: Section 104 would revise this Court's survivor 
     annuity system to incorporate certain provisions applicable 
     under the Joint Survivors' Annuity System (JSAS), the system 
     applicable to Article III, Claims, and B & M Judges, as 
     follows:
       a. Expand the period to elect participation while in office 
     (38 U.S.C. Sec. 7297(b)) to permit a retired judge who 
     marries to elect participation within 6 months after 
     marriage, as provided for by JSAS.\8\
       b. Reduce, effective the first day of the first pay period 
     beginning on or after January 1, 1995, the contributions of 
     judges in active service and on recall from 3.5 percent (38 
     U.S.C. Sec. 7297(c)) to 2.2 percent of salary and retired 
     pay, respectively, the JSAS levels.\9\
       c. Exclude from the 3-percent per annum interest payment 
     requirement (38 U.S.C. Sec. 7297(d)) any period during which 
     a judge was separated from certain previous service (as a 
     judge, a judicial official under section 376(a)(1) of title 
     28, a Member of Congress, or a congressional employee) and 
     was not receiving a retirement annuity based on service as a 
     judge or judicial official, since such interest payment is 
     not required by JSAS.\10\
       d. Reduce the minimum period of civilian service needed for 
     purposes of eligibility for a survivor annuity from 5 years 
     (38 U.S.C. Sec. 7297(f)(1), (h)(1)) to 18 months,\11\ and 
     provide for an exemption from the 18-month requirement where 
     the judge has been assassinated,\12\ both as provided for in 
     JSAS.
       e. Eliminate the requirement that the surviving spouse be 
     at least 50 years of age in order to receive a survivor 
     annuity (38 U.S.C. Sec. 7297(f)(1)A)) since no minimum age is 
     provided for in JSAS.\13\
       f. Substitute the same COLA as provided under JSAS for the 
     COLA presently in place (38 U.S.C. Sec. 7297(o) provides for 
     a fractional COLA only when the cost of living rises by 5 
     percent or more in any 1 year).\14\
       Explanation: These changes would bring the supervisors' 
     annuity program for this Court into line with that for 
     Article III, Claims, and B&M Judges, all of whom are covered 
     by JSAS.
     Section 105: Gramm-Rudman exemption
       Summary: Section 105 would exempt this Court's Retirement 
     Fund from possible Gramm-Rudman sequestration.
       Explanation: This proposal would bring this Court's 
     judicial retirement program into line with the retirement 
     programs for Article III, Claims, Tax, COMA, and B&M 
     Judges.\15\
     Seciton 106: Limitation on activities or retired judges
       Summary: Section 106 would provide that a Judge retired 
     from this Court would forfeit that judge's retirement 
     annuity, upon practicing law involving representation of any 
     client in a federal claim for veterans' benefits, during the 
     period in which the judge engages in the proscribed activity 
     and for one year immediately following the cessation of such 
     activity.
       Explanation: Claims, Tax, and B&M Judges who have retired 
     from active service are subject to statutory provisions that 
     significantly restrict such judges from the practice of law 
     in the representation of clients in the subject areas that 
     came before their respective courts.\16\ In addition to the 
     proposed section 106, this Court's judges in active service 
     are presently subject to the Code of Conduct for United 
     States Judges \17\ and, upon enactment of section 202, also 
     will be subject to that Code under certain circumstances 
     during retirement, including when in recall status. The Code 
     of Conduct imposes prohibitions and restrictions on the 
     activities of judges subject to that Code beyond those 
     imposed by statute.


               title ii--staggered retirement and recall

       Title II contains a provision to address the looming 
     problem of having as many as four simultaneous associate 
     judgeship vacancies on the Court in 2005 by creating a 
     staggered retirement option designed to encourage the 
     sequencing of associate judge retirements starting in 1999. 
     It also contains a provision to provide for recall of retired 
     judges in the event of judicial vacancies or increased 
     workload.
     Section 201: Staggered retirement
       Summary: Section 201 would provide a mechanism, in a 
     transitional provision, to permit the early retirement of one 
     associate judge per year starting in the year 1999 and ending 
     in the year 2003. In order to be eligible, each retiring 
     judge would need at least ten years of service on this Court; 
     be a participant in this Court's retirement system; have at 
     least 20 years of federal service allowable under 38 U.S.C. 
     Sec. 7297(l); be at least 55 years of age; have years of age, 
     years of service creditable under 38 U.S.C. Sec. 7296, and 
     years of service allowable under 38 U.S.C. Sec. 7297(l) not 
     creditable under section 7296, that total at least 80; and 
     have the greatest seniority as a judge of this Court among 
     this Court's judges who provide notification of intent to 
     seek early retirement in the fiscal year in question. (The 
     combination of 10 years of service on this Court and the 
     ending year of 2003 would restrict this provision's 
     availability to the Court's original associate judges.) 
     Written notification will be provided to the President and 
     Chief Judge not later than April 1 of years 1999 through 
     2003, specifying a retirement date not earlier than 90 
     days thereafter nor later than the end (September 30) of 
     the fiscal year in which notification is provided. 
     Notification shall be irrevocable once provided. Retired 
     pay of an

[[Page S6915]]

     early retiring judge will be based upon a modified rule of 
     80 in which the rate described in 38 U.S.C. 
     Sec. 7296(c)(1) is reduced proportionally in accordance 
     with the extent to which the retiring judge's combined 
     years of service as a CVA judge and age do not reach 80.
       Section 201 would further provide that 38 U.S.C. 
     Sec. 7298(e)(2), which can presently be used with respect to 
     funding actuarily determined present value of all benefits 
     payable from the Court's Retirement Fund, be amended to 
     permit the Court to use that provision also with respect to 
     benefits that may be paid from the Retirement Fund within the 
     contemplation of existing law.
       Explanation: Section 201 would provide a mechanism to deal 
     with a serious problem of judge turnover, the magnitude of 
     which the Court has not previously appreciated. The Court was 
     created in 1988 without any antecedent structure and with no 
     judges in place (Veterans' Judicial Review Act, Pub. L. 100-
     687, Div. A., 102 Stat. 4105 (Nov. 18, 1988)). All 6 of the 
     Court's original associate judges assumed office within a 
     period of approximately 1 year of each other. The 15-year 
     terms of the court's remaining 5 original associate judges 
     will expire within a period of approximately 1 year of each 
     other. Even assuming the application of the Rule of 80 under 
     38 U.S.C. Sec. 7296(b)(1) (and assuming no reappointments 
     under 38 U.S.C. Sec. 7296(2)), 4 of 5 of the court's original 
     associate judges will retire within 11 months of each other, 
     beginning in September 2004 (two in September 2004, one in 
     January 2005, and one in August 2005; the fifth associate 
     judge would be eligible for retirement under the Rule of 80 
     in November 2002).
       Given the length of time likely to be involved in the 
     nomination and confirmation process, especially considering 
     the election of a President in November 2004, 3 of the 
     Court's judgeships are very likely to be simultaneously 
     vacant during a substantial part of 2005, and it is quite 
     possible that a majority of the judgeships could be 
     simultaneously vacant during part of that year and possibly 
     thereafter. Then, even after the judgeships are filled, there 
     could well be considerable lack of experience among the 
     majority of the Court's judges. This situation would almost 
     certainly dramatically increase the Court's backlog--
     initially during the vacancies and continuing during the 
     startup period for the replacement judges. As well, during 
     the vacancy period the Court could be in a situation where 
     two or three judges might be able to overrule prior Court 
     precedent.
       In order to preclude such problems, section 201 creates a 
     staggered-retirement option designed to encourage the 
     sequencing of associate judge retirements starting in 1999. 
     It is important to bear in mind when considering the 
     staggered-retirement provision that the formula for an early-
     retirement annuity must provide sufficient financial 
     incentive for an associate judge to elect to forego the full 
     retirement benefit that would be available upon completion of 
     the 15-year term or satisfaction of the Rule of 80. There is 
     no sense whatsoever in legislating a formula that will not 
     produce the early retirements that are essential to avoid the 
     serious adverse consequences that would result for the Court 
     from having 3-4 simultaneous judicial vacancies in 2005 and 
     possibly beyond.
       Implementation of section 201 may be achievable without 
     seeking additional appropriations for this purpose. In this 
     regard, subsection (d)(2) of the proposed section 201 would 
     add a subparagraph (C) to permit the Court to utilize 38 
     U.S.C. Sec. 7298(2)(A) in anticipation of a payment that may 
     have to be made from the Court's Retirement Fund. It should 
     be noted that, even absent staggered retirement, the proposed 
     subparagraph (C) would allow the Court to provide for much 
     better management of a judge's anticipated entry, under 38 
     U.S.C. Sec. 7296(d)(1)(A), into the Court's retirement 
     system.
       Precedent exists in 3 other Article I courts for fractional 
     retirement based on completion of less than a full statutory 
     term of service. In 2 of these 3 courts, as described below, 
     the fractional retirement annuity may be enhanced by either a 
     CSRS/Federal Employees Retirement System (FERS) annuity or by 
     an additional component of court retirement calculated under 
     CSRS, respectively.
       When COMA was enlarged in 1989 from 3 to 5 active judges, 
     one of the new judgeships was for a term of 13 years and the 
     other for a term of 7 years.\18\ The COMA Judges appointed to 
     7- and 13-year terms are eligible, upon completion of those 
     terms, for immediate special annuities calculated by 
     multiplying the last salary prior to retirement by a fraction 
     based on a numerator of years of service and a denominator of 
     15.\19\
       B & M Judges who have served at least 8 years are each 
     entitled to a Judicial Retirement System (JRS) annuity, upon 
     reaching age 65, calculated by multiplying the last salary 
     prior to retirement by a fraction based on a numerator of 
     years of service and a denominator of 14 (the number of years 
     of a full term). This annuity is reduced by 2 percent for 
     each year the annuitant was under age 65 at the time the 
     annuitant left office not to exceed a 20-percent 
     reduction.\20\ The reduction is not applicable if a B & M 
     Judge fails to be reappointed after serving a full term.\21\ 
     An alternative hybrid JRS annuity is available, in a 
     transitional provision, to each full-time B & M Judge who was 
     in office on November 15, 1988, regardless of the number of 
     years of judicial service, calculated in the same manner as a 
     regular IRS annuity for those years of judicial service 
     designated by such judge for the period on or after October 
     1, 1979, plus a CSRS or FERS annuity for federal service 
     prior to the designation.\22\
       District of Columbia courts (D.C.) Judges are eligible for 
     retirement upon completion of 10 years of judicial service, 
     with retirement salary beginning at age 50, if they have 20 
     or more years of judicial service, or at age 60 if they have 
     less than 20 years of such service, or at a reduced salary if 
     they are between ages 55 and 60.\23\ The retirement salary is 
     the amount determined by multiplying the last judicial salary 
     by that fraction where the numerator is total years of 
     judicial service and the denominator is 30.\24\ Provision is 
     also made for an add-on to retirement salary, based on 
     qualifying federal civilian and military service, generally 
     computed on the basis of CSRS law. Two unique features of the 
     add-on are that the deposit by the retiring judge in the D.C. 
     Judges' Retirement Fund \25\ is 3.5 percent of the salary 
     earned for civilian service plus interest and that average 
     pay for purposes of CSRS service is the last pre-retirement 
     salary of the judge.\26\ The total retirement salary, upon 
     retirement, may not exceed 80 percent of the last judicial 
     salary.\27\ A judge who retires between ages 55 and 60 who 
     has less than 20 years of judicial service and elects a 
     reduced retirement salary shall have that salary reduced by 
     1/12th of 1 percent for each month the judge is under the age 
     of 60 at the time of retirement.\28\ In the case of a judge 
     described in the preceding sentence whose calculation of 
     retirement salary benefits, based on both fractional judicial 
     service and CSRS law, results in an amount exceeding the 80% 
     cap, the reduction based on age will be made to such 
     calculation to the extent of the difference between such 
     calculation and such cap.
       In addition to the fractional retirement provisions noted 
     above with respect to COMA, B & M, and D.C. Judges, there are 
     a number of other provisions that permit full retirement 
     where less than a full judicial term has been completed. A 
     disabled Article III Judge, Claims Judge, or Tax Judge, with 
     10 years of judicial service on such judge's court, is 
     entitled to the salary of an active judge.\29\ A disabled 
     Judge on this Court with 10 years of judicial service is 
     entitled to the retired pay that he or she would have 
     received had he or she completed his or her term.\30\ In 
     certain cases involving misconduct or disability, length-of-
     service requirements can be waived for Article III, Claims, 
     and this Court's Judges.\31\
       Finally, three other provisions should be noted. Claims and 
     B & M Judges may retire under CSRS at age 60 with 10 years of 
     judicial service. COMA Judges may retire under CSRS at any 
     time without regard to age-and-service requirements, with a 
     reduction in the annuity of a judge retiring under age 60. 
     Retired Article III Judges are permitted separate annuities, 
     without offset, one for judicial service, and one for 
     nonjudicial service that qualifies for a CSRS/FERS 
     annuity.\32\
     Section 202: Recall of retired judges
       Summary: Section 202 would provide that a retired judge of 
     the Court would be eligible for recall, by providing the 
     chief judge with written notification to that effect. Recall 
     of such a judge, in the event of judicial vacancy or 
     otherwise to meet case workload, would occur when the chief 
     judge certifies that substantial service is expected to be 
     performed by such retired judge, for such period as the chief 
     judge determines to be necessary, and such retired judge 
     agrees to such certification. During the period of recall 
     service, the retired judge would receive, in addition to the 
     judge's retired pay, the difference between that pay and pay 
     of an active judge of the Court.
       Explanation: All Article III and Article I Judges, except B 
     & M and this Court's Judges, have specific provision for both 
     senior status and post retirement judicial service.\33\ B & M 
     Judges have specific provision for postretirement judicial 
     service.\34\ Only this Court's Judges have no specific 
     provision for either.
       Article III, Claims, Tax, and COMA Judges automatically 
     receive senior status upon retirement, and D.C. Judges may be 
     appointed to such status subsequent to retirement and upon 
     favorable recommendation of the District of Columbia 
     Commission on Judicial Disabilities and Tenure.\35\ Retired 
     Article III Judges who perform the equivalent of the average 
     2-month workload of an active judge, and retired Claims and 
     Tax Judges who make themselves available for work not to 
     exceed 90 days per year receive pay of the office.\36\ Those 
     retired Article III Judges who perform service only upon 
     their consent, and all retired COMA and B & M Judges, who may 
     be recalled only upon their consent, receive their respective 
     retirement annuities plus a cost-of-living adjustment 
     (COLA).\37\
       Retired senior D.C. Judges may be recalled only upon their 
     consent.\38\ Both retired senior and nonsenior D.C. Judges 
     receive their annuities plus COLA.\39\ Recalled COMA Judges 
     receive pay of the office in lieu of retirement 
     annuities.\40\ Recalled B & M Judges and D.C. Judges receive, 
     in addition to retirement annuities, an amount equal to the 
     difference between annuity and pay of the office.\41\
       As is the case with B & M Judges, section 202 would provide 
     only for recall service, but would not provide for senior 
     status. The latter generally involves substantially higher 
     costs for judicial pay, space for chambers, and support 
     staff.

[[Page S6916]]

                     title iii--renaming provision

     Section 301: Renaming of the Court of Veterans Appeals
       Summary: Section 301 renames the United States Court of 
     Veterans Appeals as the United States Court of Appeals for 
     Veterans Claims.
       Explanation: Section 301 is virtually identical to section 
     201 of H.R. 1092, 105th Cong., 1st Sess., which was passed by 
     the House on April 16, 1997, and provides for the renaming of 
     the Court. House Report No. 105-97, which accompanied the 
     House-passed bill, states on page 3:
       The bill would amend section 7251 of title 38, United 
     States Code, to rename the United States Court of Veterans 
     Appeals (``the Court'') as the United States Court of Appeals 
     for Veterans Claims. According to Chief Judge Frank Q. 
     Nebeker, many veterans and attorneys believe that the Court 
     is an administrative tribunal of the Department of Veterans 
     Affairs rather than an independent judicial entity.
       Moreover, the Court's common acronym ``CVA'' is not readily 
     distinguishable from ``BVA'', and acronym for the Board of 
     Veterans' Appeals which is an administrative tribunal of the 
     Department of Veterans Affairs. Adoption of the name ``United 
     States Court of Appeals for Veterans Claims'' would also be 
     consistent with recent name changes in other courts 
     established by Congress under Article I of the United States 
     Constitution. In 1994, the United States Court of Military 
     Appeals was renamed the United States Court of Appeals for 
     the Armed Forces. In 1992, the United States Court of Claims 
     was renamed the United States Court of Federal Claims.


                               footnotes

     \1\ See 28 U.S.C. Sec. 604.
     \2\ See, e.g., infra note 41.
     \3\ See 10 U.S.C. Sec. 941.
     \4\ For Claims Judges, see 28 U.S.C. Sec. 178(g); see also 
     *Pub. L. No. 101-650, Sec. 306(a)(1), 104 Stat. 5107; for Tax 
     Judges, see 26 U.S.C. Sec. 7447(d)(2)(B); for COMA Judges, 
     see 10 U.S.C. Sec. 942(b)(2); see also National Defense 
     Authorization Act for Fiscal Years 1990 and 1991, *Pub. L. 
     101-189, Sec. 1301 (c), (g), 103 Stat. 1352, 1570, 1575-76 
     (Nov. 29, 1989). [Note: Starred references (*) were enacted 
     in the same year as, or subsequent to, enactment of the 
     Veterans' Judicial Review Act, Pub. L. No. 100-687, Div. A., 
     102 Stat. 4105 (1988).].
     \5\ For CSRS/FERS retirees, see 5 U.S.C. Sec. Sec. 8340, 
     8462; for Article III Judges, see CRS Report at 17; 28 U.S.C. 
     Sec. 371(b); for Claims Judges, see CRS Report at 17; 28 
     U.S.C. Sec. 178(a), (b); see also *Pub. L. 101-650, Sec. 306, 
     104 Stat. at 5105-12; for Tax Judges, see CRS Report at 17; 
     26 U.S.C. Sec. 7447(d)(1); for COMA Judges, see CRS Report at 
     17; 10 U.S.C. Sec. 945(e); see also *Pub. L. No. 101-189, 
     Sec. 1301(c), 103 Stat. at 1577; for B & M Judges, see CRS 
     Report at 8, 17; Memorandum, CVA Committee on Legislative 
     Matters, Nov. 14, 1994, item 6; 28 U.S.C. Sec. 377(e); see 
     also Retirement and Survivors' Annuities for Bankruptcy 
     Judges and Magistrates Act of 1988, *Pub. L. No. 100-659, 
     Sec. 2(a), 102 Stat. 3910, 3911 (Nov. 15, 1988); for D.C. 
     Judges, see 11 D.C. Code Ann. Sec. 1571(a)(1981).
     \6\ Ibid.
     \7\ Ibid.
     \8\ For JSAS, see CRS Report at 22; 28 U.S.C. 
     Sec. 376(a)(1)(ii); for Claims Judges, see also *Pub. L. No. 
     101-650, Sec. 306(b), 104 Stat. at 5109-10; for B & M Judges, 
     see also *Pub. L. No. 100-659, Sec. 3(a), 102 Stat. at 3917-
     18.
     \9\ For JSAS, see 28 U.S.C. Sec. 376(b)(1); see also *Pub. L. 
     No. 102-572, Sec. 201(b), 106 Stat. at 4508-09.
     \10\ For JSAS, see 28 U.S.C. Sec. 376(d); for Claims Judges, 
     see also *Pub. L. No. 101-650, Sec. 306(b), 104 Stat. at 
     5109-10; for B & M Judges, see also *Pub. L. No. 100-659, 
     Sec. 3(a), 102 Stat. at 3917-3918.
     \11\ For JSAS, see CRS Report at 12; 28 U.S.C. 
     Sec. 376(o)(1)(A), (B); for Claims Judges, see also *Pub. L. 
     No. 101-650, Sec. 306(b), 104 Stat. at 5109-10; for B & M 
     Judges, see also *Pub. L. No. 100-659, Sec. 3(a), 102 Stat. 
     at 3917-18.
     \12\ For JSAS, see 28 U.S.C. Sec. 376(o)(2); see also *Pub. 
     L. No. 101-650, Sec. 322(e)(4), 104 Stat. 5119.
     \13\ For JSAS, see CRS Report at 12; 28 U.S.C. 
     Sec. 376(h)(1)(i); for Claims Judges, see also *Pub. L. No. 
     101-650, Sec. 306(b), 104 Stat. at 5109-10; for B & M Judges, 
     see also *Pub. L. No. 100-659, Sec. 3(a), 102 Stat. at 3917-
     18.
     \14\ For JSAS, see CRS Report at 12, 26; 28 U.S.C. 
     Sec. 376(m); see also Judicial Improvements and Access to 
     Justice Act, *Pub. L. No. 100-702, Sec. 1017(a), 102 Stat. 
     4642, 4670 (Nov. 19, 1988).
     \15\ For Article III, Claims, Tax, COMA, and B & M Judges, 
     see 2 U.S.C. Sec. 905(g)(1)(B); for Claims and B & M Judges, 
     see also Federal Courts Administration Act of 1992, *Pub. L. 
     No. 102-572, Sec. 601(a), 106 Stat. 4506, 4514 (Oct. 29, 
     1992).
     \16\ For Claims Judges, see CRS Report at 20; 28 U.S.C. 
     Sec. 178(j)(1), (4)); see also *Pub. L. No. 101-650, 
     Sec. 306(a), 104 Stat. at 5107; for Tax Judges, see CRS 
     Report at 20; 26 U.S.C. Sec. 7447(f)(2), (4); for B & M 
     Judges, see CRS Report at 20; 28 U.S.C. Sec. 377(m)(1)); see 
     also *Pub. L. No. 100-659, Sec. 2, 102 Stat. at 3913.
     \17\ See Guide to Judiciary Policies and Procedures, vol. 2, 
     ch. 1, I-46, Sec. C (1994).
     \18\ See *Pub. L. No. 101-189, Sec. 1301(d), 103 Stat. at 
     1574 (found at 10 U.S.C. Sec. 942 note).
     \19\ See *Pub. L. No. 101-189, Sec. 1301(e)(3), 103 Stat. at 
     1575 (found at 10 U.S.C. Sec. 942 note).
     \20\ See CRS Report at 16; 28 U.S.C. Sec. 377(c); see also 
     *Pub. L. No. 100-659, Sec. 2(a), 102 Stat. at 3910-11.
     \21\ See CRS Report at 16; 28 U.S.C. Sec. 377(b); see also 
     *Pub. L. No. 100-659, Sec. 2(a), 102 Stat. at 3910.
     \22\ See CRS Report at 7, Eligibility and Choices; see also 
     *Pub. L. No. 100-59, Sec. 2(c)(1), 102 Stat. at 3916-17.
     \23\ See 11 D.C. Code Ann. Sec. 1562 (1981). D.C. Judges have 
     a term of 15 years. See 11 D.C. Code Ann. Sec. 1502 (1981).
     \24\ See 11 D.C. Code Ann. Sec. 1564(a) (1981).
     \25\ See 11 D.C. Code Ann. Sec. 1564(c), (d)(1) (1981).
     \26\ See 11 D.C. Code Ann. Sec. 1564(c) (1981).
     \27\ See 11 D.C. Code Ann. Sec. 1564(a) (1981).
     \28\ Ibid.
     \29\ For disabled Article III, Claims, and Tax Judges, see 
     CRS Report at 20; 28 U.S.C. Sec. 178(c)(2) (Article III); 28 
     U.S.C. Sec. 372(a) (Claims); 26 U.S.C. Sec. 7447(d)(2)(A) 
     (Tax); for Claims Judges, see also *Pub. L. No. 101-650, 
     Sec. 306(a)(1), 104 Stat. at 5105-09.
     \30\ See CRS Report at 11, 38 U.S.C. Sec. 7296(b)(3), (c)(2).
     \31\ For Article III Judges, see 28 U.S.C. 
     Sec. 372(c)(6)(B)(iii); for Claims Judges, see 28 U.S.C. 
     Sec. 372(c)(18); for CVA Judges, see 38 U.S.C. 
     Sec. 7253(g)(1).
     \32\ For Claims and B&M Judges, see CRS Report at 9, Special 
     Early Retirement; 5 U.S.C. Sec. 8336(k); see also *Pub. L. 
     101-650, Sec. 306(c)(3), 104 Stat. at 5110; for COMA Judges, 
     see CRS Report at 11, Special Early Retirement; 5 U.S.C. 
     Sec. 8336(b); for Article III Judges, see CRS Report at 6, 
     Contributions; 28 U.S.C. Sec. 371.
     \33\ For Article III and Article I Judges, see CRS Report at 
     16-17, 19; 11 D.C. Code Ann. Sec. 1504(a), (b); for Claims 
     Judges, see also *Pub. L. No. 101-650, Sec. 306(a), 104 Stat. 
     at 5106.
     \34\ See CRS Report at 19; 28 U.S.C. Sec. 155(b), 375(b), 
     636(h); see also *Pub. L. No. 100-659, Sec. 4, 102 Stat. at 
     3918.
     \35\ For Article III, Claims, Tax, and COMA Judges, see CRS 
     Report at 16, 17, 19; for Claims Judges, see also *Pub. L. 
     No. 100-659, Sec. 4, 102 Stat. at 3918; for D.C. Judges, see 
     11 D.C. Code Ann. Sec. 1504 (1981).
     \36\ For Article III, Claims, and Tax Judges, see CRS Report 
     at 17, 19; for Claims Judges, see also *Pub. L. No. 101-650, 
     Sec. 306(a), 104 Stat. at 5106.
     \37\ See infra note 41.
     \38\ See 11 D.C. Code Ann. Sec. 1504(a)(1) (1981).
     \39\ See 11 D.C. Code Sec. 1571.
     \40\ See CRS Report at 19; 10 U.S.C. Sec. 942(e)(1), (2).
     \41\ For B & M Judges, see CRS Report at 19; 28 U.S.C. 
     Sec. 155(b) (generic recall for Bankruptcy Judges); 
     Regulations of the Judicial Conference of the United States 
     Governing the Recall of Retired Bankruptcy Judges, sec. 5, 
     Period of Service (1987) (appearing in Administrative Office 
     of the U.S. Courts, Retirement Benefits for Bankruptcy Judges 
     and Magistrate Judges (1995) [hereinafter B & M Retirement 
     Benefits], App. E) (providing for 1-year renewable recall 
     terms); *Regulations of the Judicial Conference of the United 
     States Governing the Extended Recall Service of Retired 
     Bankruptcy Judges, sec. 7, Period of Service (1987) 
     (appearing in B & M Retirement Benefits, App. F) (providing 
     for 3-year renewable recall terms); 28 U.S.C. Sec. 636(h) 
     (generic recall for Magistrate Judges); Regulations of the 
     Judicial Conference of the United States Establishing 
     Standards and Procedures for the Recall of United States 
     Magistrate Judges, sec. 5, Period of Service (1987) 
     (appearing in B & M Retirement Benefits App. D) (providing 
     for 1-year renewable recall terms); see CRS Report at 19; 28 
     U.S.C. Sec. 375(a)(1) (providing for 5-year renewable recall 
     terms for B & M Judges); not implemented by regulation (B & M 
     Retirement Benefits, sec. 8.a.); for D.C. Judges, see 11 D.C. 
     Code Ann. Sec. 1565 (1981); for B & M Judges, see also *Pub. 
     L. No. 101-659, Sec. 4, 102 Stat. at 3918.
                                                                    ____



                               U.S. Court of Veterans Appeals,

                                    Washington, DC, June 16, 1997.
     Hon. Arlen Specter,
     Chairman, Committee on Veterans' Affairs, 412 Senate Russell 
         Office Building, U.S. Senate, Washington, DC.
       Dear Mr. Chairman: I am writing to submit to you a 
     legislative proposal that replaces the one I sent you in June 
     1996. As I indicated in my letter of February 4, 1997, the 
     Court had experienced a substantial change in case filings 
     for the prior 10 months. With a monthly average of new case 
     filings of over 160 during the past year, I am convinced that 
     the downsizing proposal transmitted last June is no longer 
     advisable.
       For the reasons stated in my February 4, 1997, letter, and 
     as set forth in my budget testimony in the last several 
     months, the Court now anticipates that case filings in fiscal 
     year 1997 will be over 1900--a figure that could increase 
     further if the Board of Veterans' Appeals continues to 
     increase its output of final, appealable decisions. Moreover, 
     the workload in each of the judge's chambers will increase if 
     the long delays in case processing, due to numerous filing 
     extensions granted to the Secretary, occasioned by the 
     staffing difficulties in Group VII of the Department's 
     General Counsel's office, are reduced; this matter has 
     recently received considerable attention by the Court and the 
     General Counsel herself. In that regard, I am enclosing an 
     April 8, 1997, letter (with attachment) to me from the 
     General Counsel that addresses this problem.
       Against this background of a substantial caseload increase, 
     I am submitting a new, single legislative proposal that 
     incorporates as Title I the provisions of Title II from last 
     year's proposal. These provisions are designed to provide 
     comparability in a number of respects between the retirement/
     survivor annuity programs available for this Court's judges 
     and those applicable to judges of other Article I Courts. 
     Enactment of section 104 will be of particular benefit to the 
     widow of Judge Hart Mankin, who died last year, because 
     section 104 would rectify the disparity between her survivor 
     annuity and the annuities of survivors of deceased Article I 
     Judges under the Joint Survivors' Annuity System.
       The Court's new legislative proposal adds a new Title II to 
     deal with a serious problem of judge turnover, the magnitude 
     of which the Court had not previously appreciated. As I 
     indicated in my February 4, 1997, letter, the Court was 
     created in 1988 without any antecedent structure and with no 
     judges in place (Veterans' Judicial Review Act, Pub. L. No. 
     100-687, Div. A., 102 Stat. 4105 (Nov. 18, 1988)). All 6 of 
     the Court's original associate judges assumed office within a 
     period of approximately 1 year of each other. The 15-year 
     terms of the Court's remaining 5 original associate judges 
     will expire within a period of approximately 1 year of each. 
     Even assuming the application of the Rule of 80 under 38 
     U.S.C. Sec. 7296(b)(1) (and assuming no reappointments under 
     38 U.S.C. Sec. 7296(2)), 4 of 5 of the court's original 
     associate judges will retire within 11 months of each other, 
     beginning in September 2004.
       Given the length of time likely to be involved in the 
     nomination and confirmation process, especially considering 
     the election of a President in November 2004, 3 of the 
     Court's judgeships are very likely to be simultaneously 
     vacant during a substantial part of 2005, and it is quite 
     possible that a majority of the judgeships could be 
     simultaneously vacant during part of that year and possibly 
     thereafter. Then, even after the judgeships are filled, there 
     could well be considerable lack of experience among the 
     majority of the Court's judges. This situation would almost 
     certainly dramatically increase the Court's backlog--
     initially during

[[Page S6917]]

     the vacancies and continuing during the startup period for 
     the replacement judges. As well, during the vacancy period 
     the Court could be in a situation where two or three judges 
     might be able to overrule prior Court precedent. In order to 
     preclude such problems, the enclosed legislative proposal 
     includes, as section 201, a provision to create a staggered-
     retirement option designed to encourage the sequencing of 
     associate judge retirements starting in 1999. It is important 
     to bear in mind, when considering the staggered-retirement 
     provision, that the formula for an early retirement annuity 
     must provide sufficient financial incentive for an associate 
     judge to elect to forego the full retirement benefit that 
     would be available upon completion of the 15-year term or 
     satisfaction of the Rule of 80. There is no sense whatsoever 
     in legislating a formula that will not produce the early 
     retirements that are essential to avoid the serious adverse 
     consequences that would result for the Court from having 3-4 
     simultaneous judicial vacancies for an extended period of 
     time.
       Moreover, as I also indicated in my February 4, 1997, 
     letter, implementation of this proposed Title II may be 
     achievable without seeking additional appropriations for this 
     purpose. In this regard, subsection (d) of the proposed 
     section 201 would permit the Court to utilize 38 U.S.C. 
     Sec. 7298(e)(2)(A) in anticipation of a payment that may have 
     to be made from the Court's retirement fund. It should be 
     noted that, even absent staggered retirement, the proposed 
     subsection (d) would allow the Court to provide for much 
     better management of a judge's anticipated entry, under 38 
     U.S.C. Sec. 7296(d)(1)(A), into the Court's retirement 
     system.
       In addition, in order to provide for recall of retired 
     judges in the event of judicial vacancies or increased 
     workload, included in the legislative proposal as section 202 
     is the same basic provision that was included in last year's 
     proposal as section 102. In order to help with the 
     simultaneous vacancy problem described above, the provision 
     has been revised to make specific reference to a voluntary 
     recall in the event of a vacancy in an associate judge 
     position. However, this recall provision could not itself 
     prevent the simultaneous vacancies that section 201 is 
     designed to forestall.
       Finally, for completeness sake, the proposal includes, as 
     Title III, a provision to change the Court's name to the 
     United States Court of Appeals for Veterans Claims, which I 
     proposed in my February 4, 1997, letter and which passed the 
     House on April 16, 1997, in section 201 of H.R. 1092. Title 
     III differs from section 201 only so as to accommodate the 
     former to the style of the rest of the proposal.
       Enclosed, for your information, is an overview, a cost 
     estimate, a draft bill, and a detailed section-by-section 
     summary and explanation.
       Thank you for your assistance. I urge that you and the 
     Committee give favorable consideration to the enclosed 
     legislative proposal to reform the Court's judicial 
     retirement provisions and provide for a staggered-retirement 
     option designed to avoid the impact of simultaneous judicial 
     vacancies. I am sending the same letter and enclosures to 
     Chairman Stump, and Ranking Minority Members Rockefeller and 
     Evans.
           Sincerely,
                                                 Frank Q. Nebeker,
                                                      Chief Judge.

      By Mr. DORGAN (for himself and Mrs. Feinstein):

  S. 989. A bill entitled the ``Safer Schools Act of 1997''; to the 
Committee on Labor and Human Resources.


                     The Safer Schools Act of 1997

  Mr. DORGAN. Mr. President, I am going to introduce a piece of 
legislation today that I will describe briefly.
  In the Senate a couple of years ago, I authored, with Senator 
Feinstein from California, and several others, a piece of legislation 
that says we ought to have zero tolerance in this country for guns in 
schools, zero tolerance for guns in schools. We said in the legislation 
that school districts in this country should have in place a policy 
that says if a student is caught bringing a gun to school, the student 
will be expelled for a year. Mr. President, over 6,000 students have 
now suffered expulsion as a result of bringing weapons to school.
  Weapons in school are serious. You cannot learn unless a school is a 
safe place for learning. Yet, even today we see the news stories. On 
February 17, this year, a 16-year-old Miami Edison Senior High School 
student shot a 9th grade girl at school. In Memphis, TN, on March 28, 
this year, a 16-year-old student was shot on the campus of Chicksaw 
Junior High by a 15-year-old student. On February 11, two students were 
shot and wounded in Bronx high schools. On March 29, Detroit, MI, a 16-
year-old student was shot seven times while standing in the back 
hallways of a high school. On February 18 this year, a 13-year-old 
middle school student was charged with attempting to murder his 
teacher.
  I was at a school not too many blocks from this building a couple of 
years ago. You go through metal detectors; there are security guards 
seated at the front of the school. The school is a lock-down school. 
When the students get in, they lock the door. You have to go through 
metal detectors to get in. About a month after I was there, a student 
bumped another one at the water fountain and the other student pulled a 
gun and shot him four times. That is a school within blocks of this 
U.S. Capitol building.
  We passed a piece of legislation that says there shall be zero 
tolerance for guns in schools, and students bringing guns to school 
shall be expelled from school for a year. That has worked in the sense 
that it has taken those who brought guns to school out of school to 
make sure other students are safe. But something has happened in the 
meantime. After we passed that legislation and it became law, a court 
in New York issued a ruling that was about as goofy a court ruling as 
any I have ever heard. In New York, in a school, a young boy came in 
one day wearing a leather jacket and went through the front door of the 
school and began walking down a hallway. The security guard noticed a 
bulge under the leather jacket near the waistline, so he apprehended 
the student and reached under this jacket and took from the student a 
loaded pistol--a loaded pistol was in the possession of this 16-year-
old boy walking down the hallway. The 16-year-old boy was obviously 
taken from school that day and put in a disciplinary proceeding and 
expelled, and a number of things happened. The boy appealed it, and a 
court in New York decided that the evidence of a gun on a 16-year-old 
boy in school had to be discarded because the security guard did not 
have probable cause to search the student in the hallway of the school.
  Now, when I saw the decision by the New York court, it occurred to me 
to be so nonsensical as to require nothing from any of us. Then I 
decided that if we do nothing, it means that somehow someone believes 
that court was thinking straight. Well, it was not, and I introduced in 
the last session, and will reintroduce today on behalf of myself and 
Senator Feinstein, a piece of legislation that makes it clear that 
evidence of a gun seized in school cannot be dismissed as evidence. 
Evidence of a gun can be used in a school disciplinary proceeding.
  There is no right to carry a gun in school. If that 16-year-old boy 
had gone to National Airport to try to board a plane, they would have 
forced him to go through a metal detector and they would have said you 
cannot get on a commercial airplane if you are carrying a pistol. But 
the judge's decision seems to say somehow that the security guard was 
at fault. The security guard noticed a gun on this young student, or at 
least a bulge in the leather jacket, and took a loaded pistol from this 
boy in a public school, and the security guard is at fault for 
obtaining evidence inappropriately? I do not think so. That is not the 
way this country should work. If we say you cannot take a loaded gun on 
an airplane, we ought to be able to say a 16-year-old boy cannot take a 
loaded pistol into a school. If we do not have the opportunity and 
ability to say that and make it stick, there is precious little hope 
for education in this country.

  This legislation will make sure that no judge ever again is able to 
say that a security guard erred in taking away a loaded pistol from a 
16-year-old boy walking in the hallways of our public schools. When we 
passed the Gun Free Schools Act and said that there shall be expulsion 
all across this country for kids bringing guns to schools, we wanted to 
send a national message to every student in this country, ``Don't even 
think about bringing a gun to school, because there will be certain and 
immediate results. The results will be you will be expelled, no ifs, 
ands, or buts.''
  It has been successful. Have we prevented every act of violence in 
school? No, but thousands of children who brought guns to school are 
now not in the classroom threatening other students. They are expelled 
from those classrooms, many of them probably in some alternative 
setting, but they are not in the classroom terrorizing other students.
  I am so appalled by the decision of the court in New York that I want 
a Federal law to complete the Gun Free Schools Act with the legislation 
we introduce today called the Safer Schools

[[Page S6918]]

Act. Any young person who brings a gun to school should expect that a 
security guard at the front door can remove that gun from them and that 
it will later be used as evidence in a school disciplinary proceeding.
  Mr. President, I appreciate the courtesy of the Senator from South 
Carolina. I know that the piece of legislation that he brings to the 
floor of the Senate, called the defense authorization bill, is one of 
the largest pieces of legislation that we deal with at any time during 
the year here in Congress. It contains important matters dealing with 
America's preparedness. I am anxious to debate parts of that bill and I 
wanted to compliment the Senator from South Carolina, Senator Thurmond, 
for his leadership and Senator Levin from Michigan for his leadership. 
I hope we can make significant progress this week on the legislation. I 
hope my speaking in morning business has not impeded that in any way. I 
appreciate the Senator's courtesy.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 989

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Safer Schools Act of 1997''.

     SEC. 2. SAFER SCHOOLS.

       (a) In General.--Section 14601(b)(1) of the Gun-Free 
     Schools Act of 1994 (20 U.S.C. 8921(b)(1)) is amended--
       (1) by striking ``under this Act shall have'' and inserting 
     the following: ``under this Act--
       ``(A) shall have'';
       (2) by striking the period at the end and inserting ``; 
     and''; and
       (3) by adding at the end the following:
       ``(B) beginning not later than 2 years after the date of 
     enactment of the Safer Schools Act of 1997, shall have in 
     effect a State law or regulation providing that evidence that 
     a student brought a weapon to a school under the jurisdiction 
     of the local educational agencies in that State, that is 
     obtained as a result of a search or seizure conducted on 
     school premises, shall not be excluded in any school 
     disciplinary proceeding on the ground that the search or 
     seizure was in violation of the fourth amendment to the 
     Constitution of the United States.''.
       (b) Report to State.--Section 14601(d) of the Gun-Free 
     Schools Act of 1994 (20 U.S.C. 8921(d)) is amended--
       (1) in paragraph (1), by striking ``the State law required 
     by'' and inserting ``each State law or regulation''; and
       (2) in paragraph (2), by striking ``subsection (b)'' and 
     inserting ``subsection (b)(1)(A)''.
       (c) Report to Congress.--Section 14601(f) of the Gun-Free 
     Schools Act of 1994 (20 U.S.C. 8921(f)) is amended by 
     inserting ``of subsection (b)(1)(A)'' before ``of this''.
                                 ______
                                 
      By Mr. FAIRCLOTH:
  S. 990. A bill to amend the Public Health Service Act to establish 
the National Institute of Biomedical Imaging; to the Committee on Labor 
and Human Resources.


       national institute of biomedical imaging establishment act

  Mr. FAIRCLOTH. Mr. President, I am today introducing the National 
Institute of Biomedical Imaging Establishment Act.
  This legislation would consolidate imaging research activities that 
are currently dispersed throughout the National Institutes of Health 
under a single administrative structure. This consolidation is needed 
to ensure that the American taxpayer receives the maximum possible 
return on our investment in critical new medical technologies. My 
legislation does not authorize any new spending; instead, it 
restructures existing programs in order to increase efficiency, provide 
greater accountability, and improve the process of setting priorities 
and allocating valuable resources for research. It also establishes a 
mechanism to coordinate the imaging research that is currently funded--
without an overall plan--by federal agencies outside NIH.
  The NIH is a national treasure, but it is organized to support 
research into specific diseases and organ systems. Its structure is 
less well suited to a technology that cuts across these lines and is 
applicable to virtually all diseases and organs. This legislation will 
create a research infrastructure at NIH to develop the imaging 
technologies of the 21st century. Based on the remarkable record of 
imaging innovations in the past 25 years, breakthroughs in the coming 
years will allow physicians to detect, diagnose, and treat disease more 
effectively, less invasively, and less expensively. Nearly every 
American who needs health care services will benefit from this 
proposal.
  I urge my colleagues to join in this effort to meet the scientific 
and budgetary challenges we face in medical research.

                          ____________________