[Congressional Record Volume 153, Number 75 (Tuesday, May 8, 2007)]
[Senate]
[Pages S5719-S5725]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANDERS:
  S. 1326. A bill to amend title 38, United States Code, to improve and 
enhance compensation and pension, health care, housing, burial, and 
other benefits for veterans, and for other purposes; to the Committee 
on Veterans' Affairs.
  Mr. SANDERS. Mr. President, today I am introducing the Comprehensive 
Veterans Benefits Improvements Act of 2007.
  The purpose of this bill is to address many of the long-standing 
benefit and other policy issues that are a priority to the national 
veteran service organizations and millions of their members all across 
our country. The legislation tracks many of the recommendations made in 
the Independent Budget, IB, for fiscal year 2008. The IB, as it is 
known, is ``the collaborative effort of a united veteran and health 
advocacy community that presents policy and budget recommendations on 
programs administered by the Department of Veterans Affairs and the 
Department of Labor.'' It is a guide for how this country should treat 
its veterans. It is written jointly by AMVETS, Disabled American 
Veterans, Paralyzed Veterans of America, and Veterans of Foreign Wars 
and supported by over 50 other prominent organizations. I am very happy 
to have consulted extensively with the Independent Budget authors to 
craft this legislation.
  For too many years veterans' needs have been sent to the back of the 
line in Congress behind tax cuts for the rich and corporate welfare for 
multinational corporations. This legislation is one step forward in 
correcting the shortcomings of the way our current system treats 
veterans. Instead of turning a blind eye to our veterans' needs as has 
happened often in recent years, this bill begins to say ``thank you'' 
with real action.
  The Comprehensive Veterans Benefits Improvements Act makes more than 
25 separate changes to veterans' programs ranging from disability 
payments, to insurance premiums, to grants for disabled veterans to 
adapt their cars to make them easier to use.
  We also try to make progress on long standing injustices in the VA 
and DoD benefit and retirement systems that veterans and their families 
have fought to correct for years. Among them are:
  Category 8 Veterans: In January of 2003 the VA announced that it 
would no longer allow Category 8 veterans to enroll into the VA health 
care system. The Administration justified this move on the grounds that 
these are ``higher income'' veterans. The truth, however, is that these 
veterans can make as little as $27,000 a year. VA estimates that more 
than 1.5 million category 8 veterans will have been denied enrollment 
in the VA health care system by fiscal year 2008. This legislation 
repeals that ban.
  Concurrent Receipt: As the Military Officers Association of America 
explains, the Concurrent Receipt or Disabled Veterans' Tax issue exists 
because of a ``19th century law that required a dollar-for-dollar 
offset of military retired pay for disability compensation received 
from the VA . . . Retired pay is earned for a career of uniformed 
service and VA disability compensation is recompense for pain, 
suffering and lost future earning power due to service-connected 
disabilities.'' For that reason veterans should receive both payments 
and not have one offset the other. This legislation would allow 
veterans to receive both compensation/pension benefits and retired or 
retirement pay.

  Dependency and Indemnity Compensation-Survivor Benefit Plan Offset: 
Under current law, the survivors of veterans who die as a result of 
service-connected causes are entitled to compensation known as 
dependency and indemnity compensation, DIC. In addition, military 
retirees can have money deducted from their pay to purchase a survivors 
annuity. This is called the Survivor Benefit Plan, SBP. However, if the 
military retirees dies from service-connected causes his or her 
survivors will receive a SBP payment offset dollar for dollar by the 
amount of the DIC payment they receive. Like the offset between 
military retiree pay and VA disability payments, this SBP/DIC offset 
unfairly denies beneficiaries the full amount of 2 programs that are 
meant to compensate for different loses. This legislation repeals the 
offset between dependency and indemnity compensation and the Survivor 
Benefit Plan.

[[Page S5720]]

  Veterans' Claims: We also take a new approach to improving the system 
for rating claims by creating an agency dedicated to electronically 
sharing clinical information between the VA and the DoD.
  For too long these issues have been ignored by the Congress. It is 
time for that attitude to change.
  This legislation also amends other benefit programs important to 
veterans.
  Over time, Congress and the Department of Veterans Affairs have added 
many benefits and assistance programs for our Nation's veterans and 
their families. As with many programs, the benefits did not meet all 
the needs of our veterans and others also have not been updated in many 
years rendering many of their benefits much less useful. For example, 
the IB notes the low level of grants the VA gives severely disabled 
veterans for adapting their cars:

       In 1946 the $1,600 allowance represented 85 percent of 
     average retail cost and a sufficient amount to pay the full 
     cost of automobiles in the `low-price field.' By contrast, in 
     1997 the allowance was $5,500, and the average retail cost of 
     new automobiles, according to the National Automobile Dealers 
     Association, was $21,750. Currently, the $11,000 automobile 
     allowance represents only about 39 percent of the average 
     cost of a new automobile, which is $28,105.

  This legislation increases this car grant amount to $22,484 and 
adjusts this amount automatically each year using an average retail car 
cost index established by the Secretary.
  This is not the only example of a veterans' benefit being chipped 
away by inflation. When we look at assistance family members get for 
burying a loved one we find that the current benefits have not kept up 
with inflation. As a result, the current benefit of $300 only pays for 
a small fraction of the costs of a burial. The legislation I am 
introducing today increases the plot allowance from $300 to $745 and 
expands the eligibility for the plot allowance for all veterans who 
would be eligible for burial in a national cemetery, not just those who 
served during wartime. This section also contains a provision to adjust 
these payments annually.
  This legislation contains many other similar corrections and updates, 
bringing benefits into the 21st Century so that these programs are 
meaningful again.
  These are not controversial proposals. These changes are the least we 
can do to show our appreciation for those who sacrifice for their 
country.
  This legislation is attempting to strengthen the current VA system so 
that it can fully provide for those veterans already in the system and 
those thousands more returning from Iraq and Afghanistan and all over 
the world that will soon come to the VA for care.
  This is just the beginning; one part of a larger effort to honor our 
veterans and their service. We here in Congress have so much more to do 
to care for our veterans such as improving mental health care for 
veterans, Traumatic Brain Injury treatment, Post Traumatic Stress 
Disorder treatment, transition assistance, polytrauma care, caring for 
homeless veterans, and eliminating the waiting lines and claims 
backlogs at the VA. As a parent of a fallen soldier told our Committee, 
these veterans have survived the war, now ``[w]e've got to help them 
survive the peace.''
  We have much work to do in the Veterans Affairs Committee and I look 
forward to working under the leadership of Chairman Akaka and the other 
colleagues on our Committee and in the Senate to make sure that 
meaningful and substantial veterans' legislation is passed this year.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1326

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Comprehensive Veterans Benefits Improvements Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                      TITLE I--HEALTH CARE MATTERS

Sec. 101. Enrollment of category 8 veterans in patient enrollment 
              system.
Sec. 102. Health care for veterans who are catastrophically disabled.
Sec. 103. Repeal prior care requirement for eligibility for 
              reimbursement for emergency treatment.
Sec. 104. Pilot program on lung cancer screening for veterans.

               TITLE II--COMPENSATION AND PENSION MATTERS

Sec. 201. Repeal of prohibition on concurrent receipt of compensation 
              or pension and retired or retirement pay.
Sec. 202. Increase in certain rates of disability compensation.
Sec. 203. Provisions relating to service-connected hearing loss.
Sec. 204. Repeal of requirement of reduction of SBP survivor annuities 
              by dependency and indemnity compensation.
Sec. 205. Increase in rate of dependency and indemnity compensation for 
              surviving spouses of members of the Armed Forces who die 
              on active duty.
Sec. 206. Reestablishment of age 55 as age of remarrying for retention 
              of certain veterans survivor benefits for surviving 
              spouses.
Sec. 207. Commencement of period of payment of compensation for 
              temporary total service-connected disability attributable 
              to hospitalization or treatment.
Sec. 208. Comptroller General report on adequacy of dependency and 
              indemnity compensation to maintain survivors of veterans 
              who die from service-connected disabilities.

                      TITLE III--INSURANCE MATTERS

Sec. 301. Reduction in premiums under Service-Disabled Veterans 
              Insurance program.

                 TITLE IV--BURIAL AND MEMORIAL MATTERS

Sec. 401. Plot allowances.
Sec. 402. Funeral and burial expenses.
Sec. 403. Authorization of appropriations for State cemetery grants 
              program for fiscal year 2008.

                        TITLE V--HOUSING MATTERS

Sec. 501. Grants for specially adapted housing for veterans.
Sec. 502. Veterans' mortgage life insurance.
Sec. 503. Selected Reserves serving at least 1 year eligible for 
              housing loans.
Sec. 504. Housing loan fees adjusted to rates in effect before passage 
              of Veterans Benefits Act of 2003.

                   TITLE VI--BENEFITS ADMINISTRATION

Sec. 601. Judicial review.
Sec. 602. Elimination of rounding down of certain cost-of-living 
              adjustments.
Sec. 603. Clinical Information Data Exchange Bureau.
Sec. 604. Study and report on reforms to strengthen and accelerate the 
              evaluation and processing of disability claims by the 
              Departments of Veterans Affairs and Defense.

                   TITLE VII--OTHER BENEFITS MATTERS

Sec. 701. Automobile assistance allowance.
Sec. 702. Refund of individual contributions for educational assistance 
              made by individuals prevented from pursuing educational 
              programs due to nature of discharge.
Sec. 703. Comptroller General report on provision of assisted living 
              benefits for veterans.

                      TITLE I--HEALTH CARE MATTERS

     SEC. 101. ENROLLMENT OF CATEGORY 8 VETERANS IN PATIENT 
                   ENROLLMENT SYSTEM.

       (a) Enrollment.--Notwithstanding any other provision of 
     law, the Secretary of Veterans Affairs shall permit each 
     veteran described in paragraph (8) of section 1705(a) of 
     title 38, United States Code, who presents for enrollment in 
     the system of annual patient enrollment required by such 
     section to enroll in such system for purposes of the receipt 
     of care and services as specified in such section.
       (b) Effective Date.--This section shall take effect on 
     October 1, 2007.

     SEC. 102. HEALTH CARE FOR VETERANS WHO ARE CATASTROPHICALLY 
                   DISABLED.

       (a) Report on Number of Veterans Wrongfully 
     Misclassified.--Not later than 120 days after the date of the 
     enactment of this Act, the Secretary of Veterans Affairs 
     shall submit to Congress a report setting forth the number of 
     veterans who were catastrophically disabled who were 
     wrongfully misclassified as not being catastrophically 
     disabled by reason and for the purposes of the administration 
     of the amendments made by title I of the Veterans' Health 
     Care Eligibility Reform Act of 1996 (Public Law 104-262).
       (b) Reclassification of Veterans Wrongfully 
     Misclassified.--The Secretary shall reclassify as 
     catastrophically disabled each veteran who was 
     catastrophically disabled but was misclassified as not being 
     catastrophically disabled by reason and for the purposes of 
     the administration of the amendments made by title I of the 
     Veterans' Health Care Eligibility Reform Act of 1996. Each 
     veteran shall, upon such reclassification, be entitled to 
     such benefits under the laws administered by the Secretary as 
     any other veteran who is catastrophically disabled, including 
     priority of eligibility of enrollment as a so-called 
     ``category 4 veteran'' under the patient enrollment system of 
     the

[[Page S5721]]

     Department of Veterans Affairs under section 1705 of title 
     38, United States Code.
       (c) Prohibition on Collection of Copayments and Other Fees 
     for Hospital or Nursing Home Care.--Section 1710 of title 38, 
     United States Code, is amended--
       (1) by redesignating subsection (h) as subsection (i); and
       (2) by inserting after subsection (g) the following new 
     subsection (h):
       ``(h) Notwithstanding any other provision of this section, 
     a veteran who is catastrophically disabled shall not be 
     required to make any payment otherwise required under 
     subsection (f) or (g) for the receipt of hospital care or 
     nursing home care under this section.''.
       (d) Effective Date.--Subsection (b) and the amendments made 
     by subsection (c) shall take effect on October 1, 2007.

     SEC. 103. REPEAL PRIOR CARE REQUIREMENT FOR ELIGIBILITY FOR 
                   REIMBURSEMENT FOR EMERGENCY TREATMENT.

       (a) Repeal.--Section 1725(b)(2) of title 38, United States 
     Code, is amended by striking ``if--'' and all that follows 
     and inserting ``if the veteran is enrolled in the system of 
     patient enrollment established under section 1705(a) of this 
     title.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2007.

     SEC. 104. PILOT PROGRAM ON LUNG CANCER SCREENING FOR 
                   VETERANS.

       (a) Pilot Program.--The Secretary of Veterans Affairs shall 
     carry out a pilot program that provides for screening for 
     lung cancer of veterans with a high risk of lung cancer.
       (b) Elements.--
       (1) In general.--The pilot program under subsection (a) 
     shall include such programs and activities as the Secretary 
     considers appropriate to permit the Secretary to make a 
     comprehensive assessment of the feasibility and advisability 
     of various approaches for expanding the program within the 
     Department of Veterans Affairs in order to conduct screenings 
     of veterans for lung cancer on a wider scale.
       (2) Consultation.--The Secretary shall carry out the pilot 
     program in consultation with the International Early Lung 
     Cancer Action Program and such other public and private 
     entities as the Secretary considers appropriate for purposes 
     of the pilot program.
       (c) Report.--Not later than 2 years after the commencement 
     of the pilot program under subsection (a), the Secretary 
     shall submit to Congress a report on the pilot program. The 
     report shall include--
       (1) a description of the programs and activities under the 
     pilot program;
       (2) the comprehensive assessment of the Secretary described 
     in subsection (b)(1);
       (3) recommendations, if any, for legislation necessary to 
     implement on a wider basis a screening program for lung 
     cancer of veterans; and
       (4) such other matters as the Secretary considers 
     appropriate in light of the pilot program.
       (d) Authorization of Appropriations.--
       (1) In general.--There is hereby authorized to be 
     appropriated for the Department of Veterans Affairs for 
     fiscal year 2008, $3,000,000 to carry out this section.
       (2) Availability.--The amount authorized to be appropriated 
     by paragraph (1) shall remain available until expended.

               TITLE II--COMPENSATION AND PENSION MATTERS

     SEC. 201. REPEAL OF PROHIBITION ON CONCURRENT RECEIPT OF 
                   COMPENSATION OR PENSION AND RETIRED OR 
                   RETIREMENT PAY.

       (a) Repeal.--
       (1) In general.--Section 5304(a) of title 38, United States 
     Code, is amended to read as follows:
       ``(a)(1)(A) If an election is in effect under section 1413a 
     of title 10, United States Code, with respect to any person, 
     no pension or compensation under this title shall be made 
     concurrently to the person based on the person's own service 
     or concurrently to the person based on the service of any 
     other person. This subparagraph shall not apply to the extent 
     the person waives any applicable retired or retirement pay 
     under subparagraph (B).
       ``(B) A person to whom subparagraph (A) applies who is 
     receiving any applicable retired or retirement pay may file 
     with the department paying such pay a waiver of so much of 
     such pay as is equal to the amount of the pension or 
     compensation to which subparagraph (A) otherwise applies. To 
     prevent duplication of payment, the department with which any 
     such waiver is filed shall notify the Secretary of the 
     receipt of such waiver, the amount waived, and the effective 
     date of the reduction in pay.
       ``(2) The annual amount of any applicable retired or 
     retirement pay shall be counted as annual income for purposes 
     of chapter 15 of this title.
       ``(3) In this subsection, the term `applicable retired or 
     retirement pay' means retired or retirement pay paid under a 
     provision of law providing retired or retirement pay to 
     persons in the Armed Forces or to commissioned officers of 
     the National Oceanic and Atmospheric Administration or of the 
     Public Health Service.''.
       (2) Clerical amendments.--
       (A) The heading for section 5304 of such title is amended 
     by striking ``Prohibition against'' and inserting 
     ``Provisions relating to''.
       (B) The item relating to section 5304 in the table of 
     sections at the beginning of chapter 53 of such title is 
     amended by striking ``Prohibition against'' and inserting 
     ``Provisions relating to''.
       (b) Conforming Repeals.--
       (1) In general.--Section 5305 of title 38, United States 
     Code, and section 1414 of title 10, United States Code, are 
     each repealed.
       (2) Clerical amendments.--
       (A) The table of sections at the beginning of chapter 53 of 
     title 38, United States Code, is amended by striking the item 
     relating to section 5305.
       (B) The table of sections at the beginning of chapter 71 of 
     title 10, United States Code, is amended by striking the item 
     relating to section 1414.
       (c) Conforming Amendments to Combat-Related Special 
     Compensation.--
       (1) Compensation only available to existing claimants.--
     Section 1413a of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(j) Section Only To Apply to Retirees in Payment Status 
     on October 1, 2007.--No payment under this section shall be 
     made to an eligible combat-related disabled uniform services 
     retiree for any month beginning after September 30, 2007, 
     unless the retiree has an election in effect under this 
     section for all months during the period beginning on October 
     1, 2007, and ending on the last day of the month to which the 
     payment relates.''.
       (2) Clerical amendments.--
       (A) Subsection (f) of such section is amended to read as 
     follows:
       ``(f) Revocation of Election.--The Secretary concerned 
     shall provide for an annual period (referred to as an `open 
     season') during which a person with an election in effect 
     under subsection (a) shall have the right to revoke such 
     election. Any such election shall be made under regulations 
     prescribed by the Secretary concerned and, once made, shall 
     be irrevocable. Such regulations shall provide for the form 
     and manner for making such an election and shall provide for 
     the date as of when such an election shall become effective. 
     In the case of the Secretary of a military department, such 
     regulations shall be subject to approval by the Secretary of 
     Defense.''.
       (B) Subsection (b)(2) of such section is amended by 
     striking ``sections 5304 and 5305 of title 38'' and inserting 
     ``section 5304(a)(1) of title 38''.
       (d) Other Conforming Amendments.--
       (1) Section 5111(b) of title 38, United States Code is 
     amended to read as follows:
       ``(b) During the period between the effective date of an 
     award or increased award as provided under section 5110 of 
     this title or other provision of law and the commencement of 
     the period of payment based on such award as provided under 
     subsection (a) of this section, an individual entitled to 
     receive monetary benefits shall be deemed to be in receipt of 
     such benefits for the purpose of all laws administered by the 
     Secretary.''.
       (2) Sections 1463(a)(1), 1465(c)(1)(A), 1465(c)(1)(B), and 
     1466(b)(1)(D) of title 10, United States Code, are each 
     amended by striking ``or 1414''.
       (3) Subparagraphs (A) and (B) of section 1465(c)(4) of 
     title 10, United States Code, are each amended by striking 
     ``sections 1413a and 1414'' and inserting ``section 1413a''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2007, and shall apply with 
     respect to payments of compensation or pension and retired or 
     retirement pay made on or after that date. No benefits are 
     payable by reason of the amendments made by this section for 
     any period before October 1, 2007.

     SEC. 202. INCREASE IN CERTAIN RATES OF DISABILITY 
                   COMPENSATION.

       (a) Fifty Percent Increase in Certain Rates.--Subsection 
     (k) of section 1114 of title 38, United States Code, is 
     amended--
       (1) by striking ``$3,075'' and inserting ``$4,613'';
       (2) by striking ``$89'' both places it appears and 
     inserting ``$134''; and
       (3) by striking ``$4,313'' and inserting ``$6,470''.
       (b) Twenty Percent Increase in Certain Other Rates.--Such 
     section is further amended--
       (1) in subsection (l), by striking ``$3,075'' and inserting 
     ``$3,690'';
       (2) in subsection (m), by striking ``$3,392'' and inserting 
     ``$4,070'';
       (3) in subsection (n), by striking ``$3,860'' and inserting 
     ``$4,632'';
       (4) in subsection (o), by striking ``$4,313'' and inserting 
     ``$5,176'';
       (5) in subsection (p), by striking ``$4,313'' each place it 
     appears and inserting ``$5,176'';
       (6) in subsection (r)--
       (A) in paragraph (1), by striking ``$1,851'' and inserting 
     ``$2,221''; and
       (B) in paragraph (2) by striking ``$2,757'' and inserting 
     ``$3,308''; and
       (7) in subsection (s), by striking ``$2,766'' and inserting 
     ``$3,319''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the first day of the first month that 
     begins on or after the date of the enactment of this Act, and 
     shall apply with respect to monthly amounts of disability 
     compensation payable on or after that day.

     SEC. 203. PROVISIONS RELATING TO SERVICE-CONNECTED HEARING 
                   LOSS.

       (a) Minimum Rating of Disability for Hearing Loss Requiring 
     a Hearing Aid.--Section 1155 of title 38, United States Code, 
     is amended by adding at the end the following new sentence: 
     ``The minimum rating of disability under the schedule adopted

[[Page S5722]]

     under this section for a veteran for a disability consisting 
     of hearing loss for which the wearing of a hearing aid or 
     hearing aids is medically indicated shall be a rating of 10 
     percent.''.
       (b) Presumption That Hearing Loss Is Service Connected.--
     Section 1112 of title 38, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d) For purposes of section 1110 of this title, and 
     subject to section 1113 of this title, if tinnitus or hearing 
     loss typically related to noise exposure or acoustic trauma 
     becomes manifest in a veteran who, during military service, 
     performed duties typically involving high levels of noise 
     exposure, the tinnitus or hearing loss shall be considered to 
     have been incurred in or aggravated by such service, 
     notwithstanding that there is no record of the disease during 
     the period of service.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2007. No benefit is payable 
     by reason of the amendments made by this section for any 
     period before October 1, 2007.

     SEC. 204. REPEAL OF REQUIREMENT OF REDUCTION OF SBP SURVIVOR 
                   ANNUITIES BY DEPENDENCY AND INDEMNITY 
                   COMPENSATION.

       (a) Repeal.--
       (1) In general.--Subchapter II of chapter 73 of title 10, 
     United States Code, is amended as follows:
       (A) In section 1450, by striking subsection (c).
       (B) In section 1451(c)--
       (i) by striking paragraph (2); and
       (ii) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively.
       (2) Conforming amendments.--Such subchapter is further 
     amended as follows:
       (A) In section 1450--
       (i) by striking subsection (e); and
       (ii) by striking subsection (k).
       (B) In section 1451(g)(1), by striking subparagraph (C).
       (C) In section 1452--
       (i) in subsection (f)(2), by striking ``does not apply--'' 
     and all that follows and inserting ``does not apply in the 
     case of a deduction made through administrative error.''; and
       (ii) by striking subsection (g).
       (D) In section 1455(c), by striking ``, 1450(k)(2),''.
       (b) Prohibition on Retroactive Benefits.--No benefits may 
     be paid to any person for any period before the effective 
     date provided under subsection (f) by reason of the 
     amendments made by subsection (a).
       (c) Prohibition on Recoupment of Certain Amounts Previously 
     Refunded to SBP Recipients.--A surviving spouse who is or has 
     been in receipt of an annuity under the Survivor Benefit Plan 
     under subchapter II of chapter 73 of title 10, United States 
     Code, that is in effect before the effective date provided 
     under subsection (f) and that is adjusted by reason of the 
     amendments made by subsection (a) and who has received a 
     refund of retired pay under section 1450(e) of title 10, 
     United States Code, shall not be required to repay such 
     refund to the United States.
       (d) Repeal of Authority for Optional Annuity for Dependent 
     Children.--Section 1448(d)(2) of such title is amended--
       (1) by striking ``Dependent children.--'' and all that 
     follows through ``In the case of a member described in 
     paragraph (1),'' and inserting ``Dependent children.--In the 
     case of a member described in paragraph (1),''; and
       (2) by striking subparagraph (B).
       (e) Restoration of Eligibility for Previously Eligible 
     Spouses.--The Secretary of the military department concerned 
     shall restore annuity eligibility to any eligible surviving 
     spouse who, in consultation with the Secretary, previously 
     elected to transfer payment of such annuity to a surviving 
     child or children under the provisions of section 
     1448(d)(2)(B) of title 10, United States Code, as in effect 
     on the day before the effective date provided under 
     subsection (f). Such eligibility shall be restored whether or 
     not payment to such child or children subsequently was 
     terminated due to loss of dependent status or death. For the 
     purposes of this subsection, an eligible spouse includes a 
     spouse who was previously eligible for payment of such 
     annuity and is not remarried, or remarried after having 
     attained age 55, or whose second or subsequent marriage has 
     been terminated by death, divorce or annulment.
       (f) Effective Date.--The sections and the amendments made 
     by this section shall take effect on the later of--
       (1) the first day of the first month that begins after the 
     date of the enactment of this Act; or
       (2) the first day of the fiscal year that begins in the 
     calendar year in which this Act is enacted.

     SEC. 205. INCREASE IN RATE OF DEPENDENCY AND INDEMNITY 
                   COMPENSATION FOR SURVIVING SPOUSES OF MEMBERS 
                   OF THE ARMED FORCES WHO DIE ON ACTIVE DUTY.

       (a) Increase in Rate.--Section 1311(a) of title 38, United 
     States Code, is amended--
       (1) by redesignating paragraph (3) as paragraph (4);
       (2) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(4) The rate under paragraph (1) shall be increased by 
     $228 in the case of the death of a member of the Armed Forces 
     on active duty.''; and
       (3) in paragraph (4), as redesignated by paragraph (1) of 
     this subsection, by striking ``(1) and (2)'' and inserting 
     ``(1), (2), and (3)''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2007, and shall apply with 
     respect to dependency and indemnity compensation payable for 
     months beginning on or after that date.

     SEC. 206. REESTABLISHMENT OF AGE 55 AS AGE OF REMARRYING FOR 
                   RETENTION OF CERTAIN VETERANS SURVIVOR BENEFITS 
                   FOR SURVIVING SPOUSES.

       (a) Reestablishment.--Section 103(d)(2)(B) of title 38, 
     United States Code, is amended--
       (1) in the first sentence, by striking ``age 57'' and 
     inserting ``age 55''; and
       (2) by striking the second sentence.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2007. No benefit is payable 
     by reason of the amendments made by this section for any 
     period before October 1, 2007.

     SEC. 207. COMMENCEMENT OF PERIOD OF PAYMENT OF COMPENSATION 
                   FOR TEMPORARY TOTAL SERVICE-CONNECTED 
                   DISABILITY ATTRIBUTABLE TO HOSPITALIZATION OR 
                   TREATMENT.

       (a) Commencement of Period of Payment.--Section 5111(c) of 
     title 38, United States Code, is amended by adding at the end 
     the following new paragraph:
       ``(3) In the case of a temporary increase in compensation 
     for hospitalization or treatment for a service-connected 
     disability rated as total by reason of such hospitalization 
     or treatment, the period of payment shall commence on the 
     date of admission for such hospitalization or date of 
     treatment, surgery, or other activity necessitating such 
     treatment, as applicable.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2007. No benefit is payable 
     by reason of the amendment made by subsection (a) for any 
     period before October 1, 2007.

     SEC. 208. COMPTROLLER GENERAL REPORT ON ADEQUACY OF 
                   DEPENDENCY AND INDEMNITY COMPENSATION TO 
                   MAINTAIN SURVIVORS OF VETERANS WHO DIE FROM 
                   SERVICE-CONNECTED DISABILITIES.

       (a) Report Required.--
       (1) In general.--Not later than 10 months after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit to the congressional veterans 
     affairs committees a report on the adequacy of dependency and 
     indemnity compensation payable under chapter 13 of title 38, 
     United States Code, to surviving spouses and dependents of 
     veterans who die as a result of a service-connected 
     disability in maintaining such surviving spouses and 
     dependents at a standard of living above the poverty level.
       (2) Elements.--The report required by paragraph (1) shall 
     include--
       (A) a description of the current system for the payment of 
     dependency and indemnity compensation to surviving spouses 
     and dependents described in paragraph (1), including a 
     statement of the rates of such compensation so payable;
       (B) an assessment of the adequacy of such payments in 
     maintaining such surviving spouses and dependents at a 
     standard of living above the poverty level; and
       (C) such recommendations as the Comptroller General 
     considers appropriate in order to improve or enhance the 
     effects of such payments in maintaining such surviving 
     spouses and dependents at a standard of living above the 
     poverty level.
       (b) Congressional Veterans Affairs Committees Defined.--In 
     this section, the term ``congressional veterans affairs 
     committees'' means--
       (1) the Committee on Veterans' Affairs and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on Veterans' Affairs and the Committee on 
     Appropriations of the House of Representatives.

                      TITLE III--INSURANCE MATTERS

     SEC. 301. REDUCTION IN PREMIUMS UNDER SERVICE-DISABLED 
                   VETERANS INSURANCE PROGRAM.

       (a) In General.--Section 1922(a) of title 38, United States 
     Code, is amended--
       (1) by inserting ``(1)'' after ``(a)''; and
       (2) by striking the fourth sentence and all that follows 
     and inserting the following:
       ``(2) Insurance granted under this section shall be issued 
     upon the same terms and conditions as are contained in the 
     standard policies of National Service Life Insurance, except 
     that--
       ``(A) the amount of such insurance shall be $50,000, or 
     such lesser amount, evenly divisible by $10,000, as the 
     insured may specify;
       ``(B) the premium rates for such insurance--
       ``(i) for premiums for months beginning before the 
     effective date of this paragraph under section 301(c) of date 
     of the enactment of the Comprehensive Veterans Benefits 
     Improvements Act of 2007 shall be based on the Commissioners 
     1941 Standard Ordinary Table of Mortality and interest at the 
     rate of 2\1/4\ percent per year; and
       ``(ii) for premiums for months beginning on or after that 
     effective date shall be based upon the 2001 Commissioners 
     Standard Ordinary Table of Mortality and interest at the rate 
     of 4\1/2\ percent per year;
       ``(C) all cash, loan, paid-up, and extended values--
       ``(i) for a policy issued under this section before the 
     effective date described in subparagraph (B)(i) shall be 
     based upon the Commissioners 1941 Standard Ordinary Table of 
     Mortality and interest at the rate of 2\1/4\ percent per 
     year; and
       ``(ii) for a policy issued under this section on or after 
     that effective date shall be based

[[Page S5723]]

     upon the 2001 Commissioners Standard Ordinary Table of 
     Mortality and interest at the rate of 4\1/2\ percent per 
     year;
       ``(D) all settlements on policies involving annuities shall 
     be calculated on the basis of the Annuity Table for 1949, and 
     interest at the rate of 2\1/4\ percent per year;
       ``(E) insurance granted under this section shall be on a 
     nonparticipating basis;
       ``(F) all premiums and other collections for insurance 
     under this section shall be credited directly to a revolving 
     fund in the Treasury of the United States; and
       ``(G) any payments on such insurance shall be made directly 
     from such fund.
       ``(3) Appropriations to the fund referred to in 
     subparagraphs (F) and (G) of paragraph (2) are hereby 
     authorized.
       ``(4) As to insurance issued under this section, waiver of 
     premiums pursuant to section 602(n) of the National Service 
     Life Insurance Act of 1940 and section 1912 of this title 
     shall not be denied on the ground that the service-connected 
     disability became total before the effective date of such 
     insurance.''.
       (b) Coordination With Overall Limit.--Section 1903 of such 
     title is amended by adding at the end the following new 
     sentence: ``The limitations of this section shall not apply 
     to insurance granted under section 1922 of this title, except 
     that other insurance to which this section applies shall be 
     taken into account in determining whether the limitations of 
     subsections (a)(2)(A) and (b) of section 1922 of this title 
     are met with respect to insurance granted under section 1922 
     of this title.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the later of--
       (1) October 1, 2007; or
       (2) the first day of the first month that begins more than 
     90 days after the date of the enactment of this Act.

                 TITLE IV--BURIAL AND MEMORIAL MATTERS

     SEC. 401. PLOT ALLOWANCES.

       (a) Increase in Plot Allowance.--Section 2303 of title 38, 
     United States Code, is amended by striking ``$300'' each 
     place it appears and inserting ``$745 (as adjusted from time 
     to time under subsection (c))''.
       (b) Expansion of Eligibility.--Subsection (b)(2) of such 
     section is amended by striking ``such veteran is eligible'' 
     and all that follows through ``, and''.
       (c) Annual Cost-of-Living Adjustment.--Such section is 
     further amended by adding at the end the following new 
     subsection:
       ``(c) With respect to any fiscal year, the Secretary shall 
     provide a percentage increase (rounded to the nearest dollar) 
     in each maximum amount of the plot allowance payable under 
     this section equal to the percentage by which--
       ``(1) the Consumer Price Index (all items, United States 
     city average) for the 12-month period ending on the June 30 
     preceding the beginning of the fiscal year for which the 
     increase is made, exceeds
       ``(2) such Consumer Price Index for the 12-month period 
     preceding the 12-month period described in paragraph (1).''.
       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on October 1, 2007, and shall apply with respect 
     to deaths occurring on or after that date.
       (2) No cola adjustment for fiscal year 2008.--The 
     percentage increase required by subsection (c) of section 
     2303 of title 38, United States Code (as added by subsection 
     (c) of this section), for fiscal year 2008 shall not be made.

     SEC. 402. FUNERAL AND BURIAL EXPENSES.

       (a) In General.--Section 2302 of title 38, United States 
     Code, is amended--
       (1) in subsection (a), by striking ``$300'' in the matter 
     following paragraph (2) and inserting ``$1,270 (as adjusted 
     from time to time under subsection (c))''; and
       (2) by adding at the end the following new subsection:
       ``(c) With respect to any fiscal year, the Secretary shall 
     provide a percentage increase (rounded to the nearest dollar) 
     in the maximum amount of benefits payable under subsection 
     (a) equal to the percentage by which--
       ``(1) the Consumer Price Index (all items, United States 
     city average) for the 12-month period ending on the June 30 
     preceding the beginning of the fiscal year for which the 
     increase is made, exceeds
       ``(2) such Consumer Price Index for the 12-month period 
     preceding the 12-month period described in paragraph (1).''.
       (b) Deaths From Service-Connected Disability.--Section 2307 
     of such title is amended--
       (1) by inserting ``(a) Funeral and Burial Expenses.--'' 
     before ``In any case'';
       (2) in paragraph (1) of subsection (a), as designated by 
     paragraph (1) of this subsection, by striking ``$2,000'' and 
     inserting ``$4,100 (as adjusted from time to time under 
     subsection (b))''; and
       (3) by adding at the end the following new subsection:
       ``(b) Cost-of-Living Adjustment.--With respect to any 
     fiscal year, the Secretary shall provide a percentage 
     increase (rounded to the nearest dollar) in the amount of 
     benefits payable under subsection (a)(1) equal to the 
     percentage by which--
       ``(1) the Consumer Price Index (all items, United States 
     city average) for the 12-month period ending on the June 30 
     preceding the beginning of the fiscal year for which the 
     increase is made, exceeds
       ``(2) such Consumer Price Index for the 12-month period 
     preceding the 12-month period described in paragraph (1).''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on the date of the enactment of this Act, and 
     shall apply with respect to deaths occurring on or after that 
     date.
       (2) No cola adjustment for fiscal year 2008.--The 
     percentage increase required by subsection (c) of section 
     2302 of title 38, United States Code (as added by subsection 
     (a) of this section), and the percentage increase required by 
     subsection (b) of section 2307 of title 38, United States 
     Code (as added by subsection (b) of this section), for fiscal 
     year 2008 shall not be made.

     SEC. 403. AUTHORIZATION OF APPROPRIATIONS FOR STATE CEMETERY 
                   GRANTS PROGRAM FOR FISCAL YEAR 2008.

       There is hereby authorized to be appropriated for the 
     Department of Veterans Affairs for fiscal year 2008, 
     $37,000,000 for aid to States for the establishment, 
     expansion, and improvement of veterans' cemeteries under 
     section 2408 of title 38, United States Code.

                        TITLE V--HOUSING MATTERS

     SEC. 501. GRANTS FOR SPECIALLY ADAPTED HOUSING FOR VETERANS.

       (a) Increase in Grant Amounts.--
       (1) Acquisition of housing.--Subsection (d)(1) of section 
     2102 of title 38, United States Code, is amended by striking 
     ``$50,000'' and inserting ``$60,000 (as adjusted from time to 
     time under subsection (f))''.
       (2) Adaptations to housing.--Subsections (b)(2) and (d)(2) 
     of such section are each amended by striking ``$10,000'' and 
     inserting ``$12,000 (as adjusted from time to time under 
     subsection (f))''.
       (b) Additional Grant for Acquisition of Subsequent Housing 
     Unit.--Such section is further amended--
       (1) in subsection (c), by inserting ``or (e)'' after 
     ``subsection (a)''; and
       (2) by adding at the end the following new subsection:
       ``(e)(1) In addition to the assistance otherwise provided 
     under subsection (d)(1), the assistance authorized by section 
     2101(a) of this title shall also include assistance for a 
     veteran for the acquisition by the veteran of a housing unit 
     to replace the housing unit for which assistance was provided 
     under subsection (d)(1).
       ``(2) The amount of assistance under this subsection may 
     not exceed the maximum amount of assistance available under 
     subsection (d)(1).
       ``(3) Assistance shall be afforded under this subsection 
     through a plan set forth in subsection (a), at the option of 
     the veteran concerned.''.
       (c) Annual Cost-of-Living Adjustment.--Such section is 
     further amended by adding at the end the following new 
     subsection:
       ``(f)(1) Effective on October 1 of each year (beginning in 
     2008), the Secretary shall increase the amounts in effect 
     under subsections (b)(2), (d)(1), and (d)(2) in accordance 
     with this subsection.
       ``(2) The increase in amounts under paragraph (1) to take 
     effect on October 1 of any year shall be the percentage by 
     which (A) the residential home cost-of-construction index for 
     the preceding calendar year exceeds (B) the residential home 
     cost-of-construction index for the year preceding that year.
       ``(3) The Secretary shall establish a residential home 
     cost-of-construction index for the purposes of this 
     subsection. The index shall reflect a uniform, national 
     average increase in the cost of residential home 
     construction, determined on a calendar year basis. The 
     Secretary may use an index developed in the private sector 
     that the Secretary determines is appropriate for purposes of 
     this subsection.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2007.

     SEC. 502. VETERANS' MORTGAGE LIFE INSURANCE.

       (a) Increase in Amount of Insurance.--Section 2106(b) of 
     title 38, United States Code, is amended by striking 
     ``$90,000'' and inserting ``$150,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the later of--
       (1) October 1, 2007; or
       (2) the first day of the first month that begins more than 
     90 days after the date of the enactment of this Act.

     SEC. 503. SELECTED RESERVES SERVING AT LEAST 1 YEAR ELIGIBLE 
                   FOR HOUSING LOANS.

       (a) Reduction in Period of Service Requirement for Selected 
     Reserves.--Section 3701(b)(5)(A) of title 38, United States 
     Code, is amended by striking ``6 years'' each place it 
     appears and inserting ``1 year''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2007.

     SEC. 504. HOUSING LOAN FEES ADJUSTED TO RATES IN EFFECT 
                   BEFORE PASSAGE OF VETERANS BENEFITS ACT OF 
                   2003.

       (a) In General.--Paragraph (2) of section 3729(b) of title 
     38, United States Code, is amended to read as follows:
       ``(2) The loan fee table referred to in paragraph (1) is as 
     follows:


[[Page S5724]]



                                                ``LOAN FEE TABLE
----------------------------------------------------------------------------------------------------------------
                                                    Active duty
                  Type of loan                        veteran        Reservist            Other  obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in section 3710(a)            2.00            2.75  NA
 to purchase or construct a dwelling with 0-
 down, or any other initial loan described in
 section 3710(a) other than with 5-down or 10-
 down (closed on or after October 1, 2007, and
 before October 1, 2011).
(A)(ii) Initial loan described in section                   1.25            2.00  NA
 3710(a) to purchase or construct a dwelling
 with 0-down, or any other initial loan
 described in section 3710(a) other than with 5-
 down or 10-down (closed on or after October 1,
 2011).
(B)(i) Subsequent loan described in section                 3.00            3.00  NA
 3710(a) to purchase or construct a dwelling
 with 0-down, or any other subsequent loan
 described in section 3710(a) (closed on or
 after October 1, 2007 and before October 1,
 2011).
(B)(ii) Subsequent loan described in section                1.25            2.00  NA
 3710(a) to purchase or construct a dwelling
 with 0-down, or any other subsequent loan
 described in section 3710(a) (closed on or
 after October 1, 2011).
(C)(i) Loan described in section 3710(a) to                 1.50            2.25  NA
 purchase or construct a dwelling with 5-down
 (closed on or after October 1, 2007, and before
 October 1, 2011).
(C)(ii) Loan described in section 3710(a) to                0.75            1.50  NA
 purchase or construct a dwelling with 5-down
 (closed on or after October 1, 2011).
(D)(i) Initial loan described in section 3710(a)            1.25            2.00  NA
 to purchase or construct a dwelling with 10-
 down (closed on or after October 1, 2007, and
 before October 1, 2011).
(D)(ii) Initial loan described in section                   0.50            1.25  NA
 3710(a) to purchase or construct a dwelling
 with 10-down (closed on or after October 1,
 2011).
(E) Interest rate reduction refinancing loan....            0.50            0.50  NA
(F) Direct loan under section 3711..............            1.00            1.00  NA
(G) Manufactured home loan under section 3712               1.00            1.00  NA
 (other than an interest rate reduction
 refinancing loan).
(H) Loan to Native American veteran under                   1.25            1.25  NA
 section 3762 (other than an interest rate
 reduction refinancing loan).
(I) Loan assumption under section 3714..........            0.50            0.50  0.50
(J) Loan under section 3733(a)..................            2.25            2.25  2.25.''.
----------------------------------------------------------------------------------------------------------------

       (b) Effective Date.--The amendment made by this section 
     shall apply to loans closed after September 30, 2007.

                   TITLE VI--BENEFITS ADMINISTRATION

     SEC. 601. JUDICIAL REVIEW.

       (a) Review by United States Court of Appeals for Federal 
     Circuit of Adoption or Revision of Schedule of Disability 
     Ratings.--Section 502 of title 38, United States Code, is 
     amended--
       (1) by inserting ``(a) Judicial Review.--'' before ``An 
     action'';
       (2) in subsection (a), as designated by paragraph (1) of 
     this subsection, by striking ``(other than an action relating 
     to the adoption or revision of the schedule of ratings for 
     disabilities adopted under section 1155 of this title)''; and
       (3) by adding at the end the following new subsection:
       ``(b) Standard of Review of Actions Relating to Schedule of 
     Ratings for Disabilities.--In reviewing pursuant to this 
     section an action of the Secretary relating to the adoption 
     or revision of the schedule of ratings for disabilities under 
     section 1155 of this title, the Court may set aside such 
     action only if the Court finds such action to be arbitrary, 
     capricious, or otherwise not in accordance with law.''.
       (b) Review by Court of Appeals for Veterans Claims of 
     Adverse Findings of Material Facts.--Section 7261(a)(4) of 
     such title is amended by striking ``is clearly erroneous'' 
     and inserting ``is not reasonably supported by a 
     preponderance of the evidence''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act. 
     The amendment made by subsection (b) shall apply with respect 
     to all cases pending for decision before the United States 
     Court of Appeals for Veterans Claims other than a case in 
     which a final decision has been entered before the date of 
     the enactment of this Act.

     SEC. 602. ELIMINATION OF ROUNDING DOWN OF CERTAIN COST-OF-
                   LIVING ADJUSTMENTS.

       (a) Disability Compensation.--Section 1104(a) of title 38, 
     United States Code, is amended by striking ``,with all'' and 
     all that follows up to the period at the end.
       (b) Dependency Compensation.--Section 1303(a) of such title 
     is amended by striking ``,with all'' and all that follows up 
     to the period at the end.

     SEC. 603. CLINICAL INFORMATION DATA EXCHANGE BUREAU.

       (a) Establishment of Bureau.--The Secretaries of Veterans 
     Affairs and Department of Defense shall jointly establish the 
     DoD/VA Clinical Information Data Exchange Bureau (in this 
     section referred to as ``the Bureau'').
       (b) Information System.--
       (1) In general.--The Bureau shall establish and maintain an 
     information system that facilitates the clinical exchange of 
     computable data within and between the health systems of the 
     Department of Veterans Affairs and the Department of Defense.
       (2) Elements.--In establishing the information system 
     described in paragraph (1), the Bureau shall meet the 
     following requirements:
       (A) Software requirements.--The system shall utilize 
     computer software--
       (i) the source code of which is open source and available 
     in the public domain,
       (ii) that is nonproprietary, and
       (iii) that ensures that the electronic medical records in 
     the health systems of the Department of Veterans Affairs and 
     the Department of Defense are able to understand all major 
     clinical vocabularies.
       (B) Patient privacy.--The system shall comply with all 
     appropriate rules, regulations, and procedures to safeguard 
     patient privacy and to ensure data security.
       (C) Mapping of health information.--The Bureau shall ensure 
     that personal health information available in electronic form 
     outside of the system will be able to be electronically 
     mapped into the system.
       (D) Maintenance.--The Bureau shall permanently maintain the 
     system, including ensuring that any changes in any major 
     clinical vocabulary are reflected in a timely manner in the 
     electronic medical records in the health systems of the 
     Department of Veterans Affairs and the Department of Defense.
       (c) Cost of System.--
       (1) In general.--The cost of the information system 
     established under this section, and the annual costs of 
     maintaining the system, shall be borne equally by the 
     Department of Veterans Affairs and the Department of Defense.
       (2) Fees.--The Secretaries of Veterans Affairs and Defense 
     may charge vendor user fees in order to facilitate the use of 
     discrete clinical vocabularies within the system.

[[Page S5725]]

     SEC. 604. STUDY AND REPORT ON REFORMS TO STRENGTHEN AND 
                   ACCELERATE THE EVALUATION AND PROCESSING OF 
                   DISABILITY CLAIMS BY THE DEPARTMENTS OF 
                   VETERANS AFFAIRS AND DEFENSE.

       (a) Study.--The Secretary of Veterans Affairs and the 
     Secretary of Defense shall jointly conduct a study of the 
     disability ratings systems of the Departments of Veterans 
     Affairs and Defense, including an analysis of--
       (1) the interoperability of both systems, and
       (2) the feasibility and advisability of automating the 
     Veterans Administration Schedule for Rating Disabilities 
     (VASRD) to improve the time for processing, and the accuracy 
     of, disability ratings.
       (b) Report.--
       (1) In general.--Not later than 60 days after the date of 
     the enactment of this Act, the Secretaries shall submit to 
     the relevant committees of Congress a joint report on the 
     study conducted under subsection (a).
       (2) Elements.--Such report shall include specific 
     legislative proposals, including the amount of funding, which 
     the Secretaries find necessary to--
       (A) ensure that the disability ratings systems of both the 
     Department of Veterans Affairs and the Department of Defense 
     are interoperable and that information contained in both 
     systems can readily be transmitted to and from each of the 
     departments, and
       (B) automate the Veterans Administration Schedule for 
     Rating Disabilities (VASRD), including--
       (i) an analysis of the necessary computer software and 
     other technology, and
       (ii) a schedule for the completion of the automation.
       (c) Relevant Committees of Congress.--In this section, the 
     term ``relevant committees of Congress'' means--
       (1) the Committee on Veterans' Affairs and the Committee on 
     Armed Services of the Senate, and
       (2) the Committee on Veterans' Affairs and the Committee on 
     Armed Services of the House of Representatives.

                   TITLE VII--OTHER BENEFITS MATTERS

     SEC. 701. AUTOMOBILE ASSISTANCE ALLOWANCE.

       (a) Increase in Amount of Allowance.--Subsection (a) of 
     section 3902 of title 38, United States Code, is amended by 
     striking ``$11,000'' and inserting ``$22,484 (as adjusted 
     from time to time under subsection (e))''.
       (b) Annual Adjustment.--Such section is further amended by 
     adding at the end the following new subsection:
       ``(e)(1) Effective on October 1 of each year (beginning in 
     2008), the Secretary shall increase the dollar amount in 
     effect under subsection (a) to an amount equal to 80 percent 
     of the average retail cost of new automobiles for the 
     preceding calendar year.
       ``(2) The Secretary shall establish the method for 
     determining the average retail cost of new automobiles for 
     purposes of this subsection. The Secretary may use data 
     developed in the private sector if the Secretary determines 
     the data is appropriate for purposes of this subsection.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2007.

     SEC. 702. REFUND OF INDIVIDUAL CONTRIBUTIONS FOR EDUCATIONAL 
                   ASSISTANCE MADE BY INDIVIDUALS PREVENTED FROM 
                   PURSUING EDUCATIONAL PROGRAMS DUE TO NATURE OF 
                   DISCHARGE.

       (a) In General.--Section 3034 of title 38, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(e)(1) In the case of any eligible individual who has 
     been prevented from pursuing a program of education under 
     this chapter because the individual has not met the nature of 
     discharge requirement of this chapter, the Secretary of 
     Defense shall, upon application of the individual, refund to 
     the individual the amount determined under paragraph (3) if 
     the Secretary of Defense determines that the nature of the 
     discharge was due to minor infractions or deficiencies.
       ``(2) Paragraph (1) shall not apply to an individual if the 
     discharge was a dishonorable discharge.
       ``(3) The amount determined under this paragraph with 
     respect to any individual is the excess (if any) of--
       ``(A) the sum of the amounts described in section 
     3017(b)(1) of this title with respect to the individual, over
       ``(B) the sum of the amounts described in section 
     3017(b)(2) of this title with respect to the individual.
       ``(4) The Secretary of Defense shall make the payments 
     under this subsection from the funds into which the amounts 
     described in section 3017(b)(1) of this title were 
     deposited.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to discharges after September 30, 2007.

     SEC. 703. COMPTROLLER GENERAL REPORT ON PROVISION OF ASSISTED 
                   LIVING BENEFITS FOR VETERANS.

       (a) Report Required.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit to the congressional veterans 
     affairs committees a report on the feasability and 
     advisability of the provision through the Department of 
     Veterans Affairs of assisted living benefits for veterans who 
     otherwise qualify for nursing home care through the 
     Department in lieu of the provision through the Department of 
     nursing home care for such veterans.
       (2) Elements.--The report required by paragraph (1) shall 
     include--
       (A) a description of various current proposals for the 
     provision through the Department of assisted living benefits 
     for veterans as described in paragraph (1);
       (B) an estimate of the costs of the various proposals 
     described under subparagraph (A), and an estimate of any cost 
     savings anticipated to be achieved through the carrying out 
     of such proposals;
       (C) an assessment of feasability and advisability of the 
     provision through the Department of assisted living benefits 
     for veterans as described in paragraph (1), including an 
     identification of the proposal, if any, described in that 
     paragraph, that would result in the most cost-effective 
     provision through the Department of assisted living benefits 
     for veterans; and
       (D) such recommendations as the Comptroller General 
     considers appropriate regarding the provision through the 
     Department of assisted living benefits for veterans.
       (b) Congressional Veterans Affairs Committees Defined.--In 
     this section, the term ``congressional veterans affairs 
     committees'' means--
       (1) the Committee on Veterans' Affairs and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on Veterans' Affairs and the Committee on 
     Appropriations of the House of Representatives.
                                 ______