[Congressional Record (Bound Edition), Volume 147 (2001), Part 19]
[Senate]
[Pages 26087-26103]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 26087]]

         VETERANS EDUCATION AND BENEFITS EXPANSION ACT OF 2001

  Mr. REID. Mr. President, I ask the Chair lay before the Senate a 
message from the House of Representatives on the bill (H.R. 1291).
  The PRESIDING OFFICER laid before the Senate the following message 
from the House of Representatives:

       Resolved, That the House agree to the amendments of the 
     Senate to the bill (H.R. 1291) entitled ``An Act to amend 
     title 38, United States Code, to increase the amount of 
     educational benefits for veterans under the Montgomery GI 
     Bill'', with the following House amendment to Senate 
     amendments:
       In lieu of the matter proposed to be inserted by the 
     amendment of the Senate to the text of the bill, insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Veterans 
     Education and Benefits Expansion Act of 2001''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

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

               TITLE I--EDUCATIONAL ASSISTANCE PROVISIONS

Sec. 101. Increase in rates of basic educational assistance under 
              Montgomery GI Bill.
Sec. 102. Increase in rates of survivors' and dependents' educational 
              assistance.
Sec. 103. Restoration of certain education benefits of individuals 
              being ordered to active duty.
Sec. 104. Accelerated payments of educational assistance under 
              Montgomery GI Bill for education leading to employment in 
              high technology industry.
Sec. 105. Eligibility for Montgomery GI Bill benefits of certain 
              additional Vietnam era veterans.
Sec. 106. Increase in maximum allowable annual Senior ROTC educational 
              assistance for eligibility for benefits under the 
              Montgomery GI Bill.
Sec. 107. Expansion of work-study opportunities.
Sec. 108. Eligibility for survivors' and dependents' educational 
              assistance of spouses and surviving spouses of veterans 
              with total service-connected disabilities.
Sec. 109. Expansion of special restorative training benefit to certain 
              disabled spouses or surviving spouses.
Sec. 110. Inclusion of certain private technology entities in 
              definition of educational institution.
Sec. 111. Distance education.

             TITLE II--COMPENSATION AND PENSION PROVISIONS

Sec. 201. Modification and extension of authorities on presumption of 
              service-connection for herbicide-related disabilities of 
              Vietnam veterans.
Sec. 202. Payment of compensation for Persian Gulf War veterans with 
              certain chronic disabilities.
Sec. 203. Preservation of service connection for undiagnosed illnesses 
              to provide for participation in research projects by 
              Persian Gulf War veterans.
Sec. 204. Repeal of limitation on payments of benefits to incompetent 
              institutionalized veterans.
Sec. 205. Extension of round-down requirement for compensation cost-of-
              living adjustments.
Sec. 206. Expansion of presumptions of permanent and total disability 
              for veterans applying for nonservice-connected pension.
Sec. 207. Eligibility of veterans 65 years of age or older for 
              veterans' pension benefits.

             TITLE III--TRANSITION AND OUTREACH PROVISIONS

Sec. 301. Authority to establish overseas veterans assistance offices 
              to expand transition assistance.
Sec. 302. Timing of preseparation counseling.
Sec. 303. Improvement in education and training outreach services for 
              separating servicemembers and veterans.
Sec. 304. Improvement of veterans outreach programs.

                       TITLE IV--HOUSING MATTERS

Sec. 401. Increase in home loan guaranty amount for construction and 
              purchase of homes.
Sec. 402. Native American veteran housing loan pilot program.
Sec. 403. Modification of loan assumption notice requirement.
Sec. 404. Increase in assistance amount for specially adapted housing.
Sec. 405. Extension of other housing authorities.
Sec. 406. Clarifying amendment relating to eligibility of members of 
              the Selected Reserve for housing loans.

                         TITLE V--OTHER MATTERS

Sec. 501. Increase in burial benefits.
Sec. 502. Government markers for marked graves at private cemeteries.
Sec. 503. Increase in amount of assistance for automobile and adaptive 
              equipment for certain disabled veterans.
Sec. 504. Extension of limitation on pension for certain recipients of 
              medicaid-covered nursing home care.
Sec. 505. Prohibition on provision of certain benefits with respect to 
              persons who are fugitive felons.
Sec. 506. Limitation on payment of compensation for veterans remaining 
              incarcerated since October 7, 1980.
Sec. 507. Elimination of requirement for providing a copy of notice of 
              appeal to the Secretary of Veterans Affairs.
Sec. 508. Increase in fiscal year limitation on number of veterans in 
              programs of independent living services and assistance.
Sec. 509. Technical and clerical amendments.

      TITLE VI--UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

Sec. 601. Facilitation of staggered terms of judges through temporary 
              expansion of the Court.
Sec. 602. Repeal of requirement for written notice regarding acceptance 
              of reappointment as condition to retirement from the 
              Court.
Sec. 603. Termination of notice of disagreement as jurisdictional 
              requirement for the Court.
Sec. 604. Registration fees.
Sec. 605. Administrative authorities.

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

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

               TITLE I--EDUCATIONAL ASSISTANCE PROVISIONS

     SEC. 101. INCREASE IN RATES OF BASIC EDUCATIONAL ASSISTANCE 
                   UNDER MONTGOMERY GI BILL.

       (a) In General.--(1) Paragraph (1) of section 3015(a) is 
     amended to read as follows:
       ``(1) for an approved program of education pursued on a 
     full-time basis, at the monthly rate of--
       ``(A) for months beginning on or after January 1, 2002, 
     $800;
       ``(B) for months occurring during fiscal year 2003, $900;
       ``(C) for months occurring during fiscal year 2004, $985; 
     and
       ``(D) for months occurring during a subsequent fiscal year, 
     the amount for months occurring during the previous fiscal 
     year increased under subsection (h); or''.
       (2) Paragraph (1) of section 3015(b) is amended to read as 
     follows:
       ``(1) for an approved program of education pursued on a 
     full-time basis, at the monthly rate of--
       ``(A) for months beginning on or after January 1, 2002, 
     $650;
       ``(B) for months occurring during fiscal year 2003, $732;
       ``(C) for months occurring during fiscal year 2004, $800; 
     and
       ``(D) for months occurring during a subsequent fiscal year, 
     the amount for months occurring during the previous fiscal 
     year increased under subsection (h); or''.
       (b) CPI Adjustment.--No adjustment in rates of educational 
     assistance shall be made under section 3015(h) of title 38, 
     United States Code, for fiscal years 2003 and 2004.

     SEC. 102. INCREASE IN RATES OF SURVIVORS' AND DEPENDENTS' 
                   EDUCATIONAL ASSISTANCE.

       (a) Survivors' and Dependents' Educational Assistance.--
     Section 3532 is amended--
       (1) in subsection (a)(1)--
       (A) by striking ``$588'' and inserting ``$670'';
       (B) by striking ``$441'' and inserting ``$503''; and
       (C) by striking ``$294'' and inserting ``$335'';
       (2) in subsection (a)(2), by striking ``$588'' and 
     inserting ``$670'';
       (3) in subsection (b), by striking ``$588'' and inserting 
     ``$670''; and
       (4) in subsection (c)(2)--
       (A) by striking ``$475'' and inserting ``$541';
       (B) by striking ``$356'' and inserting ``$406''; and
       (C) by striking ``$238'' and inserting ``$271''.
       (b) Correspondence Courses.--Section 3534(b) is amended by 
     striking ``$588'' and inserting ``$670''.
       (c) Special Restorative Training.--Section 3542(a) is 
     amended--
       (1) by striking ``$588'' and inserting ``$670''; and
       (2) by striking ``$184'' each place it appears and 
     inserting ``$210''.
       (d) Apprenticeship Training.--Section 3687(b)(2) is 
     amended--
       (1) by striking ``$428'' and inserting ``$488'';
       (2) by striking ``$320'' and inserting ``$365'';
       (3) by striking ``$212'' and inserting ``$242''; and

[[Page 26088]]

       (4) by striking ``$107'' and inserting ``$122''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect as of January 1, 2002, and shall apply with 
     respect to educational assistance allowances payable under 
     chapter 35 and section 3687(b)(2) of title 38, United States 
     Code, for months beginning on or after that date.

     SEC. 103. RESTORATION OF CERTAIN EDUCATION BENEFITS OF 
                   INDIVIDUALS BEING ORDERED TO ACTIVE DUTY.

       (a) In General.--Sections 3013(f)(2)(A), 3231(a)(5)(B)(i), 
     and 3511(a)(2)(B)(i) are each amended by striking ``, in 
     connection with the Persian Gulf War, to serve on active duty 
     under section 672 (a), (d), or (g), 673, 673b, or 688 of 
     title 10;'' and inserting ``to serve on active duty under 
     section 688, 12301(a), 12301(d), 12301(g), 12302, or 12304 of 
     title 10;''.
       (b) Increase in Chapter 35 Delimiting Period.--Section 3512 
     is amended by adding at the end the following new subsection:
       ``(h) Notwithstanding any other provision of this section, 
     if an eligible person, during the delimiting period otherwise 
     applicable to such person under this section, serves on 
     active duty pursuant to an order to active duty issued under 
     section 688, 12301(a), 12301(d), 12301(g), 12302, or 12304 of 
     title 10, such person shall be granted an extension of such 
     delimiting period for the length of time equal to the period 
     of such active duty plus four months.''.
       (c) Application to Chapter 31.--(1) Section 3105 is amended 
     by adding at the end the following new subsection:
       ``(e)(1) Notwithstanding any other provision of this 
     chapter or chapter 36 of this title, any payment of a 
     subsistence allowance and other assistance described in 
     paragraph (2) shall not--
       ``(A) be charged against any entitlement of any veteran 
     under this chapter; or
       ``(B) be counted toward the aggregate period for which 
     section 3695 of this title limits an individual's receipt of 
     allowance or assistance.
       ``(2) The payment of the subsistence allowance and other 
     assistance referred to in paragraph (1) is the payment of 
     such an allowance or assistance for the period described in 
     paragraph (3) to a veteran for participation in a vocational 
     rehabilitation program under this chapter if the Secretary 
     finds that the veteran had to suspend or discontinue 
     participation in such vocational rehabilitation program as a 
     result of being ordered to serve on active duty under section 
     688, 12301(a), 12301(d), 12301(g), 12302, or 12304 of title 
     10.
       ``(3) The period for which, by reason of this subsection, a 
     subsistence allowance and other assistance is not charged 
     against entitlement or counted toward the applicable 
     aggregate period under section 3695 of this title shall be 
     the period of participation in the vocational rehabilitation 
     program for which the veteran failed to receive credit or 
     with respect to which the veteran lost training time, as 
     determined by the Secretary.''.
       (2) Section 3103 is amended by adding at the end the 
     following new subsection:
       ``(e) In any case in which the Secretary has determined 
     that a veteran was prevented from participating in a 
     vocational rehabilitation program under this chapter within 
     the period of eligibility otherwise prescribed in this 
     section as a result of being ordered to serve on active duty 
     under section 688, 12301(a), 12301(d), 12301(g), 12302, or 
     12304 of title 10, such period of eligibility shall not run 
     for the period of such active duty service plus four months.
       (d) Conforming Amendments.--Sections 3013(f)(2)(B) and 
     3231(a)(5)(B)(ii) of such title are each amended by striking 
     ``, in connection with such War,''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect as of September 11, 2001.

     SEC. 104. ACCELERATED PAYMENTS OF EDUCATIONAL ASSISTANCE 
                   UNDER MONTGOMERY GI BILL FOR EDUCATION LEADING 
                   TO EMPLOYMENT IN HIGH TECHNOLOGY INDUSTRY.

       (a) In General.--(1) Chapter 30 is amended by inserting 
     after section 3014 the following new section:

     ``Sec. 3014A. Accelerated payment of basic educational 
       assistance for education leading to employment in high 
       technology industry

       ``(a) An individual described in subsection (b) who is 
     entitled to basic educational assistance under this 
     subchapter may elect to receive an accelerated payment of the 
     basic educational assistance allowance otherwise payable to 
     the individual under section 3015 of this title.
       ``(b) An individual described in this subsection is an 
     individual who is--
       ``(1) enrolled in an approved program of education that 
     leads to employment in a high technology industry (as 
     determined pursuant to regulations prescribed by the 
     Secretary); and
       ``(2) charged tuition and fees for the program of education 
     that, when divided by the number of months (and fractions 
     thereof) in the enrollment period, exceeds the amount equal 
     to 200 percent of the monthly rate of basic educational 
     assistance allowance otherwise payable to the individual 
     under section 3015 of this title.
       ``(c)(1) The amount of the accelerated payment of basic 
     educational assistance made to an individual making an 
     election under subsection (a) for a program of education 
     shall be the lesser of--
       ``(A) the amount equal to 60 percent of the established 
     charges for the program of education; or
       ``(B) the aggregate amount of basic educational assistance 
     to which the individual remains entitled under this chapter 
     at the time of the payment.
       ``(2) In this subsection, the term `established charges', 
     in the case of a program of education, means the actual 
     charges (as determined pursuant to regulations prescribed by 
     the Secretary) for tuition and fees which similarly 
     circumstanced nonveterans enrolled in the program of 
     education would be required to pay. Established charges shall 
     be determined on the following basis:
       ``(A) In the case of an individual enrolled in a program of 
     education offered on a term, quarter, or semester basis, the 
     tuition and fees charged the individual for the term, 
     quarter, or semester.
       ``(B) In the case of an individual enrolled in a program of 
     education not offered on a term, quarter, or semester basis, 
     the tuition and fees charged the individual for the entire 
     program of education.
       ``(3) The educational institution providing the program of 
     education for which an accelerated payment of basic 
     educational assistance allowance is elected by an individual 
     under subsection (a) shall certify to the Secretary the 
     amount of the established charges for the program of 
     education.
       ``(d) An accelerated payment of basic educational 
     assistance made to an individual under this section for a 
     program of education shall be made not later than the last 
     day of the month immediately following the month in which the 
     Secretary receives a certification from the educational 
     institution regarding--
       ``(1) the individual's enrollment in and pursuit of the 
     program of education; and
       ``(2) the amount of the established charges for the program 
     of education.
       ``(e)(1) Except as provided in paragraph (2), for each 
     accelerated payment of basic educational assistance made to 
     an individual under this section, the individual's 
     entitlement to basic educational assistance under this 
     chapter shall be charged the number of months (and any 
     fraction thereof) determined by dividing the amount of the 
     accelerated payment by the full-time monthly rate of basic 
     educational assistance allowance otherwise payable to the 
     individual under section 3015 of this title as of the 
     beginning date of the enrollment period for the program of 
     education for which the accelerated payment is made.
       ``(2) If the monthly rate of basic educational assistance 
     allowance otherwise payable to an individual under section 
     3015 of this title increases during the enrollment period of 
     a program of education for which an accelerated payment of 
     basic educational assistance is made under this section, the 
     charge to the individual's entitlement to basic educational 
     assistance under this chapter shall be determined by 
     prorating the entitlement chargeable, in the matter provided 
     for under paragraph (1), for the periods covered by the 
     initial rate and increased rate, respectively, in accordance 
     with regulations prescribed by the Secretary.
       ``(f) The Secretary may not make an accelerated payment 
     under this section for a program of education to an 
     individual who has received an advance payment under section 
     3680(d) of this title for the same enrollment period.
       ``(g) The Secretary shall prescribe regulations to carry 
     out this section. The regulations shall include requirements, 
     conditions, and methods for the request, issuance, delivery, 
     certification of receipt and use, and recovery of overpayment 
     of an accelerated payment under this section.''.
       (2) The table of sections at the beginning of that chapter 
     is amended by inserting after the item relating to section 
     3014 the following new item:

``3014A. Accelerated payment of basic educational assistance for 
              education leading to employment in high technology 
              industry.''.
       (b) Restatement and Enhancement of Certain Administrative 
     Authorities.--Subsection (g) of section 3680 is amended to 
     read as follows:

         ``Determination of Enrollment, Pursuit, and Attendance

       ``(g)(1) The Secretary may, pursuant to regulations which 
     the Secretary shall prescribe, determine and define with 
     respect to an eligible veteran and eligible person the 
     following:
       ``(A) Enrollment in a course or program of education or 
     training.
       ``(B) Pursuit of a course or program of education or 
     training.
       ``(C) Attendance at a course or program of education or 
     training.
       ``(2) The Secretary may withhold payment of benefits to an 
     eligible veteran or eligible person until the Secretary 
     receives such proof as the Secretary may require of 
     enrollment in and satisfactory pursuit of a program of 
     education by the eligible veteran or eligible person. The 
     Secretary shall adjust the payment withheld, when necessary, 
     on the basis of the proof the Secretary receives.
       ``(3) In the case of an individual other than an individual 
     described in paragraph (4), the Secretary may accept the 
     individual's monthly certification of enrollment in and 
     satisfactory pursuit of a program of education as sufficient 
     proof of the certified matters.
       ``(4) In the case of an individual who has received an 
     accelerated payment of basic educational assistance under 
     section 3014A of this title during an enrollment period for a 
     program of education, the Secretary may accept the 
     individual's certification of enrollment in and satisfactory 
     pursuit of the program of education as sufficient proof of 
     the certified matters if the certification is submitted after 
     the enrollment period has ended.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect October 1, 2002,

[[Page 26089]]

     and shall apply with respect to enrollments in courses or 
     programs of education or training beginning on or after that 
     date.

     SEC. 105. ELIGIBILITY FOR MONTGOMERY GI BILL BENEFITS OF 
                   CERTAIN ADDITIONAL VIETNAM ERA VETERANS.

       (a) Active Duty Program.--Section 3011(a)(1) is amended--
       (1) by striking ``or'' at the end of subparagraph (A);
       (2) by adding ``or'' at the end of subparagraph (B); and
       (3) by adding at the end the following new subparagraph:
       ``(C) as of December 31, 1989, was eligible for educational 
     assistance benefits under chapter 34 of this title and--
       ``(i) was not on active duty on October 19, 1984;
       ``(ii) reenlists or reenters on a period of active duty on 
     or after October 19, 1984; and
       ``(iii) on or after July 1, 1985, either--

       ``(I) serves at least three years of continuous active duty 
     in the Armed Forces; or
       ``(II) is discharged or released from active duty (aa) for 
     a service-connected disability, for a medical condition which 
     preexisted such service on active duty and which the 
     Secretary determines is not service connected, for hardship, 
     or for a physical or mental condition that was not 
     characterized as a disability, as described in subparagraph 
     (A)(ii)(I) of this paragraph, (bb) for the convenience of the 
     Government, if the individual completed not less than 30 
     months of continuous active duty after that date, or (cc) 
     involuntarily for the convenience of the Government as a 
     result of a reduction in force, as determined by the 
     Secretary of the military department concerned in accordance 
     with regulations prescribed by the Secretary of Defense or by 
     the Secretary of Transportation with respect to the Coast 
     Guard when it is not operating as a service in the Navy;''.

       (b) Selected Reserve Program.--Section 3012(a)(1) is 
     amended--
       (1) by striking ``or'' at the end of subparagraph (A);
       (2) by adding ``or'' at the end of subparagraph (B); and
       (3) by adding at the end the following new subparagraph:
       ``(C) as of December 31, 1989, was eligible for educational 
     assistance under chapter 34 of this title and--
       ``(i) was not on active duty on October 19, 1984;
       ``(ii) reenlists or reenters on a period of active duty on 
     or after October 19, 1984; and
       ``(iii) on or after July 1, 1985--

       ``(I) serves at least two years of continuous active duty 
     in the Armed Forces, subject to subsection (b) of this 
     section, characterized by the Secretary concerned as 
     honorable service; and
       ``(II) subject to subsection (b) of this section and 
     beginning within one year after completion of such two years 
     of service, serves at least four continuous years in the 
     Selected Reserve during which the individual participates 
     satisfactorily in training as prescribed by the Secretary 
     concerned;''.

       (c) Time for Use of Entitlement.--Section 3031 is amended--
       (1) in subsection (a)--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(3) in the case of an individual who becomes entitled to 
     such assistance under section 3011(a)(1)(C) or 3012(a)(1)(C) 
     of this title, on the date of the enactment of this 
     paragraph.''; and
       (2) in subsection (e)(1), by striking ``section 
     3011(a)(1)(B) or 3012(a)(1)(B)'' and inserting ``section 
     3011(a)(1)(B), 3011(a)(1)(C), 3012(a)(1)(B), or 
     3012(a)(1)(C)''.

     SEC. 106. INCREASE IN MAXIMUM ALLOWABLE ANNUAL SENIOR ROTC 
                   EDUCATIONAL ASSISTANCE FOR ELIGIBILITY FOR 
                   BENEFITS UNDER THE MONTGOMERY GI BILL.

       (a) In General.--Sections 3011(c)(3)(B) and 3012(d)(3)(B) 
     are each amended by striking ``$2,000'' and inserting 
     ``$3,400''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to educational assistance allowances 
     paid under chapter 30 of title 38, United States Code, for 
     months beginning after the date of the enactment of this Act.

     SEC. 107. EXPANSION OF WORK-STUDY OPPORTUNITIES.

       (a) Five-Year Expansion of Qualifying Work-Study 
     Activities.--Subsection (a) of section 3485 is amended to 
     read as follows:
       ``(a)(1) Individuals utilized under the authority of 
     subsection (b) shall be paid an additional educational 
     assistance allowance (hereinafter in this section referred to 
     as `work-study allowance'). Such allowance shall be paid in 
     return for an individual's entering into an agreement 
     described in paragraph (3).
       ``(2) Such work-study allowance shall be paid in an amount 
     equal to the product of--
       ``(A) the applicable hourly minimum wage; and
       ``(B) the number of hours worked during the applicable 
     period.
       ``(3) An agreement described in this paragraph is an 
     agreement of an individual to perform services, during or 
     between periods of enrollment, aggregating not more than a 
     number of hours equal to 25 times the number of weeks in the 
     semester or other applicable enrollment period, required in 
     connection with a qualifying work-study activity.
       ``(4) For the purposes of this section, the term 
     `qualifying work-study activity' means any of the following:
       ``(A) The outreach services program under subchapter II of 
     chapter 77 of this title as carried out under the supervision 
     of a Department employee or, during the five-year period 
     beginning on the date of the enactment of the Veterans 
     Education and Benefits Expansion Act of 2001, outreach 
     services to servicemembers and veterans furnished by 
     employees of a State approving agency.
       ``(B) The preparation and processing of necessary papers 
     and other documents at educational institutions or regional 
     offices or facilities of the Department.
       ``(C) The provision of hospital and domiciliary care and 
     medical treatment under chapter 17 of this title, including, 
     during the five-year period beginning on the date of the 
     enactment of the Veterans Education and Benefits Expansion 
     Act of 2001, the provision of such care to veterans in a 
     State home for which payment is made under section 1741 of 
     this title.
       ``(D) Any other activity of the Department as the Secretary 
     determines appropriate.
       ``(E) In the case of an individual who is receiving 
     educational assistance under chapter 1606 of title 10, an 
     activity relating to the administration of that chapter at 
     Department of Defense, Coast Guard, or National Guard 
     facilities.
       ``(F) During the five-year period beginning on the date of 
     the enactment of the Veterans Education and Benefits 
     Expansion Act of 2001, an activity relating to the 
     administration of a national cemetery or a State veterans' 
     cemetery.
       ``(5) An individual may elect, in a manner prescribed by 
     the Secretary, to be paid in advance an amount equal to 40 
     percent of the total amount of the work-study allowance 
     agreed to be paid under the agreement in return for the 
     individual's agreement to perform the number of hours of work 
     specified in the agreement (but not more than an amount equal 
     to 50 times the applicable hourly minimum wage).
       ``(6) For the purposes of this subsection and subsection 
     (e), the term `applicable hourly minimum wages' means--
       ``(A) the hourly minimum wage under section 6(a) of the 
     Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)); or
       ``(B) the hourly minimum wage under comparable law of the 
     State in which the services are to be performed, if such wage 
     is higher than the wage referred to in subparagraph (A) and 
     the Secretary has made a determination to pay such higher 
     wage.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to agreements entered into under 
     section 3485 of title 38, United States Code, on or after the 
     date of the enactment of this Act.

     SEC. 108. ELIGIBILITY FOR SURVIVORS' AND DEPENDENTS' 
                   EDUCATIONAL ASSISTANCE OF SPOUSES AND SURVIVING 
                   SPOUSES OF VETERANS WITH TOTAL SERVICE-
                   CONNECTED DISABILITIES.

       (a) Designation of Eligibility.--Section 3501(a)(1)(D) is 
     amended--
       (1) by inserting ``(i)'' after ``(D)''; and
       (2) by inserting ``(ii)'' after ``or''.
       (b) Restatement and Expansion of Treatment of Use of 
     Eligibility.--(1) Section 3511 is amended by adding at the 
     end the following new subsection:
       ``(c) Any entitlement used by an eligible person as a 
     result of eligibility under section 3501(a)(1)(A)(iii), 
     3501(a)(1)(C), or 3501(a)(1)(D)(i) of this title shall be 
     deducted from any entitlement to which such person may 
     subsequently be entitled under this chapter.''.
       (2) Section 3512 is amended by striking subsection (g).
       (c) Delimiting Period.--(1) Section 3511(a)(1) is amended 
     by adding at the end the following new sentence: ``In no 
     event may the aggregate educational assistance afforded to a 
     spouse made eligible under both 3501(a)(1)(D)(i) and 
     3501(a)(1)(D)(ii) of this title exceed 45 months.''.
       (2) Paragraph (1) of section 3512(b) is amended to read as 
     follows:
       ``(1)(A) Except as provided in subparagraph (B), a person 
     made eligible by subparagraph (B) or (D) of section 
     3501(a)(1) of this title may be afforded educational 
     assistance under this chapter during the 10-year period 
     beginning on the date (as determined by the Secretary) the 
     person becomes an eligible person within the meaning of 
     section 3501(a)(1)(B), 3501(a)(1)(D)(i), or 3501(a)(1)(D)(ii) 
     of this title. In the case of a surviving spouse made 
     eligible by clause (ii) of section 3501(a)(1)(D) of this 
     title, the 10-year period may not be reduced by any earlier 
     period during which the person was eligible for educational 
     assistance under this chapter as a spouse made eligible by 
     clause (i) of that section.
       ``(B) Notwithstanding subparagraph (A), an eligible person 
     referred to in that subparagraph may, subject to the 
     Secretary's approval, elect a later beginning date for the 
     10-year period than would otherwise be applicable to the 
     person under that subparagraph. The beginning date so elected 
     may be any date between the beginning date determined for the 
     person under subparagraph (A) and whichever of the following 
     dates applies:
       ``(i) The date on which the Secretary notifies the veteran 
     from whom eligibility is derived that the veteran has a 
     service-connected total disability permanent in nature.
       ``(ii) The date on which the Secretary determines that the 
     veteran from whom eligibility is derived died of a service-
     connected disability.''.
       (3) Section 3512(b) is further amended by striking 
     paragraph (3).
       (4) The amendments made by this subsection shall apply with 
     respect to any determination

[[Page 26090]]

     (whether administrative or judicial) of the eligibility of a 
     spouse or surviving spouse for educational assistance under 
     chapter 35 of title 38, United States Code, made on or after 
     the date of the enactment of this Act, whether pursuant to an 
     original claim for such assistance or pursuant to a 
     reapplication or attempt to reopen or readjudicate a claim 
     for such assistance.

     SEC. 109. EXPANSION OF SPECIAL RESTORATIVE TRAINING BENEFIT 
                   TO CERTAIN DISABLED SPOUSES OR SURVIVING 
                   SPOUSES.

       (a) In General.--Section 3540 is amended by striking 
     ``section 3501(a)(1)(A) of this title'' and inserting 
     ``subparagraphs (A), (B), and (D) of section 3501(a)(1) of 
     this title''.
       (b) Conforming Amendments.--(1) Section 3541(a) is amended 
     in the matter preceding paragraph (1) by striking ``of the 
     parent or guardian''.
       (2) Section 3542(a) is amended--
       (A) by striking ``the parent or guardian shall be entitled 
     to receive on behalf of such person'' and inserting ``the 
     eligible person shall be entitled to receive''; and
       (B) by striking ``upon election by the parent or guardian 
     of the eligible person'' and inserting ``upon election by the 
     eligible person''.
       (3) The second sentence of section 3543(a) is amended by 
     striking ``the parent or guardian for the training provided 
     to an eligible person'' and inserting ``for the training 
     provided to the eligible person''.
       (4) Section 3543 is amended by adding at the end the 
     following new subsection:
       ``(c) In a case in which the Secretary authorizes training 
     under section 3541(a) of this title on behalf of an eligible 
     person, the parent or guardian shall be entitled--
       ``(1) to receive on behalf of the eligible person the 
     special training allowance provided for under section 3542(a) 
     of this title;
       ``(2) to elect an increase in the basic monthly allowance 
     provided for under such section; and
       ``(3) to agree with the Secretary on the fair and 
     reasonable amounts which may be charged under subsection 
     (a).''.

     SEC. 110. INCLUSION OF CERTAIN PRIVATE TECHNOLOGY ENTITIES IN 
                   DEFINITION OF EDUCATIONAL INSTITUTION.

       (a) In General.--Sections 3452(c) and 3501(a)(6) are each 
     amended by adding at the end the following new sentence: 
     ``Such term also includes any private entity (that meets such 
     requirements as the Secretary may establish) that offers, 
     either directly or under an agreement with another entity 
     (that meets such requirements), a course or courses to 
     fulfill requirements for the attainment of a license or 
     certificate generally recognized as necessary to obtain, 
     maintain, or advance in employment in a profession or 
     vocation in a high technology occupation (as determined by 
     the Secretary).''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to enrollments in courses beginning on or after 
     the date of the enactment of this Act.

     SEC. 111. DISTANCE EDUCATION.

       (a) In General.--Subsection (a)(4) of section 3680A is 
     amended--
       (1) by inserting ``(A)'' after ``leading''; and
       (2) by inserting before the period the following: ``, or 
     (B) to a certificate that reflects educational attainment 
     offered by an institution of higher learning''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to enrollments in independent study courses 
     beginning on or after the date of the enactment of this Act.

             TITLE II--COMPENSATION AND PENSION PROVISIONS

     SEC. 201. MODIFICATION AND EXTENSION OF AUTHORITIES ON 
                   PRESUMPTION OF SERVICE-CONNECTION FOR 
                   HERBICIDE-RELATED DISABILITIES OF VIETNAM 
                   VETERANS.

       (a) Presumptive Period for Respiratory Cancers.--(1)(A) 
     Subparagraph (F) of subsection (a)(2) of section 1116 is 
     amended by striking ``within 30 years'' and all that follows 
     through ``May 7, 1975''.
       (B) The amendment made by subparagraph (A) shall take 
     effect January 1, 2002.
       (2) The Secretary of Veterans Affairs shall enter into a 
     contract with the National Academy of Sciences, not later 
     than six months after the date of the enactment of this Act, 
     for the performance of a study to include a review of all 
     available scientific literature on the effects of exposure to 
     an herbicide agent containing dioxin on the development of 
     respiratory cancers in humans and whether it is possible to 
     identify a period of time after exposure to herbicides after 
     which a presumption of service-connection for such exposure 
     would not be warranted. Under the contract, the National 
     Academy of Sciences shall submit a report to the Secretary 
     setting forth its conclusions. The report shall be submitted 
     not later than 18 months after the contract is entered into.
       (3) For a period of six months beginning on the date of the 
     receipt of the report of the National Academy of Sciences 
     under paragraph (2), the Secretary may, if warranted by clear 
     scientific evidence presented in the National Academy of 
     Sciences report, initiate a rulemaking under which the 
     Secretary would specify a limit on the number of years after 
     a claimant's departure from Vietnam after which respiratory 
     cancers would not be presumed to have been associated with 
     the claimant's exposure to herbicides while serving in 
     Vietnam. Any such limit under such a rule may not take effect 
     until 120 days have passed after the publication of a final 
     rule to impose such a limit.
       (4)(A) Subject to subparagraphs (B) and (C), if the 
     Secretary imposes such a limit under paragraph (3), that 
     limit shall be effective only as to claims filed on or after 
     the effective date of that limit.
       (B) In the case of any veteran whose disability or death 
     due to respiratory cancer is found by the Secretary to be 
     service-connected under section 1116(a)(2)(F) of title 38, 
     United States Code, as amended by paragraph (1), such 
     disability or death shall remain service-connected for 
     purposes of all provisions of law under such title 
     notwithstanding the imposition, if any, of a time limit by 
     the Secretary by rulemaking authorized under paragraph (3).
       (C) Subaragraph (B) does not apply in a case in which--
       (i) the original award of compensation or service 
     connection was based on fraud; or
       (ii) it is clearly shown from military records that the 
     person concerned did not have the requisite service or 
     character of discharge.
       (b) Presumption That Diabetes Mellitus (Type 2) Is Service-
     Connected.--Subsection (a)(2) of section 1116 is further 
     amended by adding at the end the following new subparagraph:
       ``(H) Diabetes Mellitus (Type 2).''.
       (c) Presumption of Exposure to Herbicide Agents in Vietnam 
     During Vietnam Era.--(1) Section 1116 is further amended--
       (A) by transferring paragraph (3) of subsection (a) to the 
     end of the section and redesignating such paragraph, as so 
     transferred, as subsection (f);
       (B) by redesignating paragraph (4) of subsection (a) as 
     paragraph (3); and
       (C) in subsection (f), as transferred and redesignated by 
     subparagraph (A) of this paragraph--
       (i) by striking ``For the purposes of this subsection, a 
     veteran'' and inserting ``For purposes of establishing 
     service connection for a disability or death resulting from 
     exposure to a herbicide agent, including a presumption of 
     service-connection under this section, a veteran''; and
       (ii) by striking ``and has a disease referred to in 
     paragraph (1)(B) of this subsection''.
       (2)(A) The heading of that section is amended to read as 
     follows:

     ``Sec. 1116. Presumptions of service connection for diseases 
       associated with exposure to certain herbicide agents; 
       presumption of exposure for veterans who served in the 
       Republic of Vietnam''.

       (B) The item relating to that section in the table of 
     sections at the beginning of chapter 11 is amended to read as 
     follows:

``1116. Presumptions of service connection for diseases associated with 
              exposure to certain herbicide agents; presumption of 
              exposure for veterans who served in the Republic of 
              Vietnam.''.
       (d) Extension of Authority To Presume Service-Connection 
     for Additional Diseases.--(1) Subsection (e) of such section 
     is amended by striking ``10 years'' and all that follows 
     through ``Agent Orange Act of 1991'' and inserting ``on 
     September 30, 2015''.
       (2) Section 3(i) of the Agent Orange Act of 1991 (38 U.S.C. 
     1116 note) is amended by striking ``10 years'' and all that 
     follows and inserting ``on October 1, 2014.''.

     SEC. 202. PAYMENT OF COMPENSATION FOR PERSIAN GULF WAR 
                   VETERANS WITH CERTAIN CHRONIC DISABILITIES.

       (a) Illnesses That Cannot Be Clearly Defined.--(1) 
     Subsection (a) of section 1117 is amended to read as follows:
       ``(a)(1) The Secretary may pay compensation under this 
     subchapter to a Persian Gulf veteran with a qualifying 
     chronic disability that became manifest--
       ``(A) during service on active duty in the Armed Forces in 
     the Southwest Asia theater of operations during the Persian 
     Gulf War; or
       ``(B) to a degree of 10 percent or more during the 
     presumptive period prescribed under subsection (b).
       ``(2) For purposes of this subsection, the term `qualifying 
     chronic disability' means a chronic disability resulting from 
     any of the following (or any combination of any of the 
     following):
       ``(A) An undiagnosed illness.
       ``(B) A medically unexplained chronic multisymptom illness 
     (such as chronic fatigue syndrome, fibromyalgia, and 
     irritable bowel syndrome) that is defined by a cluster of 
     signs or symptoms.
       ``(C) Any diagnosed illness that the Secretary determines 
     in regulations prescribed under subsection (d) warrants a 
     presumption of service-connection.''.
       (2) Subsection (c)(1) of such section is amended--
       (A) in the matter preceding subparagraph (A), by striking 
     ``for an undiagnosed illness (or combination of undiagnosed 
     illnesses)''; and
       (B) in subparagraph (A), by striking ``for such illness (or 
     combination of illnesses)''.
       (b) Signs or Symptoms That May Indicate Undiagnosed 
     Illnesses.--(1) Such section is further amended by adding at 
     the end the following new subsection:
       ``(g) For purposes of this section, signs or symptoms that 
     may be a manifestation of an undiagnosed illness or a chronic 
     multisymptom illness include the following:
       ``(1) Fatigue.
       ``(2) Unexplained rashes or other dermatological signs or 
     symptoms.

[[Page 26091]]

       ``(3) Headache.
       ``(4) Muscle pain.
       ``(5) Joint pain.
       ``(6) Neurological signs and symptoms.
       ``(7) Neuropsychological signs or symptoms.
       ``(8) Signs or symptoms involving the upper or lower 
     respiratory system.
       ``(9) Sleep disturbances.
       ``(10) Gastrointestinal signs or symptoms.
       ``(11) Cardiovascular signs or symptoms.
       ``(12) Abnormal weight loss.
       ``(13) Menstrual disorders.''.
       (2) Section 1118(a) is amended by adding at the end the 
     following new paragraph:
       ``(4) For purposes of this section, signs or symptoms that 
     may be a manifestation of an undiagnosed illness include the 
     signs and symptoms listed in section 1117(g) of this 
     title.''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on March 1, 2002.
       (d) Clarification of Authority To Presume Service-
     Connection for Additional Diseases.--(1) Sections 1117(c)(2) 
     and 1118(e) are each amended by striking ``10 years'' and all 
     that follows through ``of 1998'' and inserting ``on September 
     30, 2011''.
       (2) Section 1603(j) of the Persian Gulf War Veterans Act of 
     1998 (38 U.S.C. 1117 note) is amended by striking ``10 
     years'' and all that follows and inserting ``on October 1, 
     2010.''.

     SEC. 203. PRESERVATION OF SERVICE CONNECTION FOR UNDIAGNOSED 
                   ILLNESSES TO PROVIDE FOR PARTICIPATION IN 
                   RESEARCH PROJECTS BY PERSIAN GULF WAR VETERANS.

       (a) Authority for Secretary To Provide for Participation 
     Without Loss of Benefits.--Section 1117 is amended by adding 
     after subsection (g), as added by section 202(b), the 
     following new subsection:
       ``(h)(1) If the Secretary determines with respect to a 
     medical research project sponsored by the Department that it 
     is necessary for the conduct of the project that Persian Gulf 
     veterans in receipt of compensation under this section or 
     section 1118 of this title participate in the project without 
     the possibility of loss of service connection under either 
     such section, the Secretary shall provide that service 
     connection granted under either such section for disability 
     of a veteran who participated in the research project may not 
     be terminated. Except as provided in paragraph (2), 
     nothwithstanding any other provision of law any grant of 
     service-connection protected under this subsection shall 
     remain service-connected for purposes of all provisions of 
     law under this title.
       ``(2) Paragraph (1) does not apply in a case in which--
       ``(A) the original award of compensation or service 
     connection was based on fraud; or
       ``(B) it is clearly shown from military records that the 
     person concerned did not have the requisite service or 
     character of discharge.
       ``(3) The Secretary shall publish in the Federal Register a 
     list of medical research projects sponsored by the Department 
     for which service connection granted under this section or 
     section 1118 of this title may not be terminated pursuant to 
     paragraph (1).''.
       (b) Effective Date.--The authority provided by subsection 
     (h) of section 1117 of title 38, United States Code, as added 
     by subsection (a), may be used by the Secretary of Veterans 
     Affairs with respect to any medical research project of the 
     Department of Veterans Affairs, whether commenced before, on, 
     or after the date of the enactment of this Act.

     SEC. 204. REPEAL OF LIMITATION ON PAYMENTS OF BENEFITS TO 
                   INCOMPETENT INSTITUTIONALIZED VETERANS.

       (a) Repeal.--Section 5503 is amended--
       (1) by striking subsections (b) and (c); and
       (2) by redesignating subsections (d), (e), and (f) as 
     subsections (b), (c), and (d), respectively.
       (b) Conforming Amendments.--(1) Section 1114(r) is amended 
     by striking ``section 5503(e)'' and inserting ``section 
     5503(c)''.
       (2) Section 5112 is amended by striking subsection (c).

     SEC. 205. EXTENSION OF ROUND-DOWN REQUIREMENT FOR 
                   COMPENSATION COST-OF-LIVING ADJUSTMENTS.

       Sections 1104(a) and 1303(a) are amended by striking 
     ``2002'' and inserting ``2011''.

     SEC. 206. EXPANSION OF PRESUMPTIONS OF PERMANENT AND TOTAL 
                   DISABILITY FOR VETERANS APPLYING FOR 
                   NONSERVICE-CONNECTED PENSION.

       (a) In General.--Section 1502(a) is amended by striking 
     ``such a person'' and all that follows through the end of the 
     subsection and inserting the following: ``such person is any 
     of the following:
       ``(1) A patient in a nursing home for long-term care 
     because of disability.
       ``(2) Disabled, as determined by the Commissioner of Social 
     Security for purposes of any benefits administered by the 
     Commissioner.
       ``(3) Unemployable as a result of disability reasonably 
     certain to continue throughout the life of the person.
       ``(4) Suffering from--
       ``(A) any disability which is sufficient to render it 
     impossible for the average person to follow a substantially 
     gainful occupation, but only if it is reasonably certain that 
     such disability will continue throughout the life of the 
     person; or
       ``(B) any disease or disorder determined by the Secretary 
     to be of such a nature or extent as to justify a 
     determination that persons suffering therefrom are 
     permanently and totally disabled.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as of September 17, 2001.

     SEC. 207. ELIGIBILITY OF VETERANS 65 YEARS OF AGE OR OLDER 
                   FOR VETERANS' PENSION BENEFITS.

       (a) In General.--(1) Subchapter II of chapter 15 is amended 
     by inserting after section 1512 the following new section:

     ``Sec. 1513. Veterans 65 years of age and older

       ``(a) The Secretary shall pay to each veteran of a period 
     of war who is 65 years of age or older and who meets the 
     service requirements of section 1521 of this title (as 
     prescribed in subsection (j) of that section) pension at the 
     rates prescribed by 1521 of this title and under the 
     conditions (other than the permanent and total disability 
     requirement) applicable to pension paid under that section.
       ``(b) If a veteran is eligible for pension under both this 
     section and section 1521 of this title, pension shall be paid 
     to the veteran only under section 1521 of this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1512 the following new item:

``1513. Veterans 65 years of age and older.''.

       (b) Conforming Amendments.--(1) Section 1521(f)(1) is 
     amended by inserting ``or the age and service requirements 
     prescribed in section 1513 of this title,'' after ``of this 
     section,''.
       (2) Section 1522(a) is amended by inserting ``1513 or'' 
     after ``under section''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as of September 17, 2001.

             TITLE III--TRANSITION AND OUTREACH PROVISIONS

     SEC. 301. AUTHORITY TO ESTABLISH OVERSEAS VETERANS ASSISTANCE 
                   OFFICES TO EXPAND TRANSITION ASSISTANCE.

       Section 7723(a) is amended by inserting after the first 
     sentence the following new sentence: ``The Secretary may 
     maintain such offices on such military installations located 
     elsewhere as the Secretary, after consultation with the 
     Secretary of Defense, determines to be necessary to carry out 
     such purposes.''.

     SEC. 302. TIMING OF PRESEPARATION COUNSELING.

       (a) In General.--(1) The first sentence of section 
     1142(a)(1) of title 10, United States Code, is amended to 
     read as follows: ``Within the time periods specified in 
     paragraph (3), the Secretary concerned shall (except as 
     provided in paragraph (4)) provide for individual 
     preseparation counseling of each member of the armed forces 
     whose discharge or release from active duty is anticipated as 
     of a specific date.''.
       (2) Such section is further amended by adding at the end 
     the following new paragraphs:
       ``(3)(A) In the case of an anticipated retirement, 
     preseparation counseling shall commence as soon as possible 
     during the 24-month period preceding the anticipated 
     retirement date. In the case of a separation other than a 
     retirement, preseparation counseling shall commence as soon 
     as possible during the 12-month period preceding the 
     anticipated date. Except as provided in subparagraph (B), in 
     no event shall preseparation counseling commence later than 
     90 days before the date of discharge or release.
       ``(B) In the event that a retirement or other separation is 
     unanticipated until there are 90 or fewer days before the 
     anticipated retirement or separation date, preseparation 
     counseling shall begin as soon as possible within the 
     remaining period of service.
       ``(4)(A) Subject to subparagraph (B), the Secretary 
     concerned shall not provide preseparation counseling to a 
     member who is being discharged or released before the 
     completion of that member's first 180 days of active duty.
       ``(B) Subparagraph (A) shall not apply in the case of a 
     member who is being retired or separated for disability.''.
       (b) Conforming Amendment.--The second sentence of section 
     1144(a)(1) of title 10, United States Code, is amended by 
     striking ``during the 180-day period'' and all that follows 
     and inserting ``within the time periods provided under 
     paragraph (3) of section 1142(a) of this title, except that 
     the Secretary concerned shall not provide preseparation 
     counseling to a member described in paragraph (4)(A) of such 
     section.''.

     SEC. 303. IMPROVEMENT IN EDUCATION AND TRAINING OUTREACH 
                   SERVICES FOR SEPARATING SERVICEMEMBERS AND 
                   VETERANS.

       (a) Providing Outreach Through State Approving Agencies.--
     Section 3672(d) is amended by inserting ``and State approving 
     agencies'' before ``shall actively promote the development of 
     programs of training on the job''.
       (b) Additional Duty.--Such section is further amended--
       (1) by inserting ``(1)'' after ``(d)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) In conjunction with outreach services provided by the 
     Secretary under chapter 77 of this title for education and 
     training benefits, each State approving agency shall conduct 
     outreach programs and provide outreach services to eligible 
     persons and veterans about education and training benefits 
     available under applicable Federal and State law.''.

     SEC. 304. IMPROVEMENT OF VETERANS OUTREACH PROGRAMS.

       Section 7722(c) is amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) by adding at the end the following:
       ``(2) Whenever a veteran or dependent first applies for any 
     benefit under laws administered by the Secretary (including a 
     request for burial or related benefits or an application for 
     life insurance proceeds), the Secretary shall provide to

[[Page 26092]]

     the veteran or dependent information concerning benefits and 
     health care services under programs administered by the 
     Secretary. Such information shall be provided not later than 
     three months after the date of such application.''.

                       TITLE IV--HOUSING MATTERS

     SEC. 401. INCREASE IN HOME LOAN GUARANTY AMOUNT FOR 
                   CONSTRUCTION AND PURCHASE OF HOMES.

       Section 3703(a)(1) is amended by striking ``$50,750'' each 
     place it appears in subparagraphs (A)(i)(IV) and (B) and 
     inserting ``$60,000''.

     SEC. 402. NATIVE AMERICAN VETERAN HOUSING LOAN PILOT PROGRAM.

       (a) Extension of Pilot Program.--Section 3761(c) is amended 
     by striking ``December 31, 2001'' and inserting ``December 
     31, 2005''.
       (b) Authorization of the Use of Certain Federal Memorandums 
     of Understanding.--Section 3762(a)(1) is amended--
       (1) by inserting ``(A)'' after ``(1)'';
       (2) by striking ``and'' after the semicolon and inserting 
     ``or''; and
       (3) by adding at the end the following:
       ``(B) the tribal organization that has jurisdiction over 
     the veteran has entered into a memorandum of understanding 
     with any department or agency of the United States with 
     respect to direct housing loans to Native Americans that the 
     Secretary determines substantially complies with the 
     requirements of subsection (b); and''.
       (c) Extension of Annual Report.--Section 3762(j) is amended 
     by striking ``2002'' and inserting ``2006''.

     SEC. 403. MODIFICATION OF LOAN ASSUMPTION NOTICE REQUIREMENT.

       Section 3714(d) is amended to read as follows:
       ``(d) With respect to a loan guaranteed, insured, or made 
     under this chapter, the Secretary shall provide, by 
     regulation, that at least one instrument evidencing either 
     the loan or the mortgage or deed of trust therefor, shall 
     conspicuously contain, in such form as the Secretary shall 
     specify, a notice in substantially the following form: `This 
     loan is not assumable without the approval of the Department 
     of Veterans Affairs or its authorized agent'.''.

     SEC. 404. INCREASE IN ASSISTANCE AMOUNT FOR SPECIALLY ADAPTED 
                   HOUSING.

       Section 2102 is amended--
       (1) in the matter preceding paragraph (1) of subsection 
     (a), by striking ``$43,000'' and inserting ``$48,000''; and
       (2) in subsection (b)(2), by striking ``$8,250'' and 
     inserting ``$9,250''.

     SEC. 405. EXTENSION OF OTHER HOUSING AUTHORITIES.

       (a) Housing Loans for Members of the Selected Reserve.--
     Section 3702(a)(2)(E) is amended by striking ``September 30, 
     2007'' and inserting ``September 30, 2009''.
       (b) Enhanced Loan Asset Sale Authority.--Section 3720(h)(2) 
     is amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2011''.
       (c) Home Loan Fee Authorities.--The table in section 
     3729(b)(2) is amended by striking ``October 1, 2008'' each 
     place it appears and inserting ``October 1, 2011''.
       (d) Procedures Applicable to Liquidation Sales on Defaulted 
     Home Loans Guaranteed by the Department of Veterans 
     Affairs.--Section 3732(c)(11) is amended by striking 
     ``October 1, 2008'' and inserting ``October 1, 2011''.

     SEC. 406. CLARIFYING AMENDMENT RELATING TO ELIGIBILITY OF 
                   MEMBERS OF THE SELECTED RESERVE FOR HOUSING 
                   LOANS.

       Section 3729(b)(4)(B) is amended by inserting before the 
     period the following: ``who is eligible under section 
     3702(a)(2)(E) of this title''.

                         TITLE V--OTHER MATTERS

     SEC. 501. INCREASE IN BURIAL BENEFITS.

       (a) Burial and Funeral Expenses.--(1) Clause (1) of section 
     2307 is amended by striking ``$1,500'' and inserting 
     ``$2,000''.
       (2) The amendment made by paragraph (1) shall apply to 
     deaths occurring on or after September 11, 2001.
       (b) Plot Allowance.--(1) Section 2303(b) is amended by 
     striking ``$150'' each place it appears and inserting 
     ``$300''.
       (2) The amendments made by paragraph (1) shall apply to 
     deaths occurring on or after December 1, 2001.

     SEC. 502. GOVERNMENT MARKERS FOR MARKED GRAVES AT PRIVATE 
                   CEMETERIES.

       (a) Government Marker Benefit.--Section 2306 of title 38, 
     United States Code, is amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d)(1) The Secretary shall furnish, when requested, an 
     appropriate Government marker at the expense of the United 
     States for the grave of an individual described in paragraph 
     (2) or (5) of subsection (a) who is buried in a private 
     cemetery, notwithstanding that the grave is marked by a 
     headstone or marker furnished at private expense. Such a 
     marker may be furnished only if the individual making the 
     request for the Government marker certifies to the Secretary 
     that the marker will be placed on the grave for which the 
     marker is requested.
       ``(2) Any marker furnished under this subsection shall be 
     delivered by the Secretary directly to the cemetery where the 
     grave is located.
       ``(3) The authority to furnish a marker under this 
     subsection expires on December 31, 2006.
       ``(4) Not later than February 1, 2006, the Secretary shall 
     submit to the Committees on Veterans' Affairs of the Senate 
     and House of Representatives a report on the use of the 
     authority under this subsection. The report shall include the 
     following:
       ``(A) The rate of use of the benefit under this subsection, 
     shown by fiscal year.
       ``(B) An assessment as to the extent to which markers 
     furnished under this subsection are being delivered to 
     cemeteries and placed on grave sites consistent with the 
     provisions of this subsection.
       ``(C) The Secretary's recommendation for extension or 
     repeal of the expiration date specified in paragraph (3).''.
       (b) Design of Marker.--Subsection (c) of such section is 
     amended by striking ``subsection (a) or (b)'' and inserting 
     ``subsection (a), (b), or (d)''.
       (c) Cross Reference Correction.--Subsection (a)(5) of such 
     section is amended by striking ``chapter 67'' and inserting 
     ``chapter 1223''.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall apply with respect to markers for the graves of 
     individuals dying on or after the date of the enactment of 
     this Act.

     SEC. 503. INCREASE IN AMOUNT OF ASSISTANCE FOR AUTOMOBILE AND 
                   ADAPTIVE EQUIPMENT FOR CERTAIN DISABLED 
                   VETERANS.

       Section 3902(a) is amended by striking ``$8,000'' and 
     inserting ``$9,000''.

     SEC. 504. EXTENSION OF LIMITATION ON PENSION FOR CERTAIN 
                   RECIPIENTS OF MEDICAID-COVERED NURSING HOME 
                   CARE.

       Paragraph (7) of subsection (d) of section 5503, as 
     redesignated by section 204(a), is amended by striking 
     ``September 30, 2008'' and inserting ``September 30, 2011''.

     SEC. 505. PROHIBITION ON PROVISION OF CERTAIN BENEFITS WITH 
                   RESPECT TO PERSONS WHO ARE FUGITIVE FELONS.

       (a) Prohibition.--(1) Chapter 53 is amended by inserting 
     after section 5313A the following new section:

     ``Sec. 5313B. Prohibition on providing certain benefits with 
       respect to persons who are fugitive felons

       ``(a) A veteran who is otherwise eligible for a benefit 
     specified in subsection (c) may not be paid or otherwise 
     provided such benefit for any period during which such 
     veteran is a fugitive felon. A dependent of a veteran who is 
     otherwise eligible for a benefit specified in subsection (c) 
     may not be paid or otherwise provided such benefit for any 
     period during which such veteran or such dependent is a 
     fugitive felon.
       ``(b) For purposes of this section:
       ``(1) The term `fugitive felon' means a person who is a 
     fugitive by reason of--
       ``(A) fleeing to avoid prosecution, or custody or 
     confinement after conviction, for an offense, or an attempt 
     to commit an offense, which is a felony under the laws of the 
     place from which the person flees; or
       ``(B) violating a condition of probation or parole imposed 
     for commission of a felony under Federal or State law.
       ``(2) The term `felony' includes a high misdemeanor under 
     the laws of a State which characterizes as high misdemeanors 
     offenses that would be felony offenses under Federal law.
       ``(3) The term `dependent' means a spouse, surviving 
     spouse, child, or dependent parent of a veteran.
       ``(c) A benefit specified in this subsection is a benefit 
     under any of the following:
       ``(1) Chapter 11 of this title.
       ``(2) Chapter 13 of this title.
       ``(3) Chapter 15 of this title.
       ``(4) Chapter 17 of this title.
       ``(5) Chapter 19 of this title.
       ``(6) Chapter 30, 31, 32, 34, or 35 of this title.
       ``(7) Chapter 37 of this title.
       ``(d)(1) The Secretary shall furnish to any Federal, State, 
     or local law enforcement official, upon the written request 
     of such official, the most current address maintained by the 
     Secretary of a person who is eligible for a benefit specified 
     in subsection (c) if such official--
       ``(A) provides to the Secretary such information as the 
     Secretary may require to fully identify the person;
       ``(B) identifies the person as being a fugitive felon; and
       ``(C) certifies to the Secretary that apprehending such 
     person is within the official duties of such official.
       ``(2) The Secretary shall enter into memoranda of 
     understanding with Federal law enforcement agencies, and may 
     enter into agreements with State and local law enforcement 
     agencies, for purposes of furnishing information to such 
     agencies under paragraph (1).''.
       (2) The table of sections at the beginning of that chapter 
     is amended by inserting after the item relating to section 
     5313A the following new item:

``5313B. Prohibition on providing certain benefits with respect to 
              persons who are fugitive felons.''.

       (b) Sense of Congress on Entry Into Memoranda of 
     Understanding and Agreements.--It is the sense of Congress 
     that the memoranda of understanding and agreements referred 
     to in section 5313B(d)(2) of title 38, United States Code (as 
     added by subsection (a)), should be entered into as soon as 
     practicable after the date of the enactment of this Act, but 
     not later than six months after that date.

[[Page 26093]]



     SEC. 506. LIMITATION ON PAYMENT OF COMPENSATION FOR VETERANS 
                   REMAINING INCARCERATED SINCE OCTOBER 7, 1980.

       (a) Limitation.--Section 5313 of title 38, United States 
     Code, other than subsection (d) of that section, shall apply 
     with respect to the payment of compensation to or with 
     respect to any veteran described in subsection (b).
       (b) Covered Veterans.--A veteran described in this 
     subsection is a veteran who is entitled to compensation and 
     who--
       (1) on October 7, 1980, was incarcerated in a Federal, 
     State, or local penal institution for a felony committed 
     before that date; and
       (2) remains so incarcerated for conviction of that felony 
     as of the date of the enactment of this Act.
       (c) Effective Date.--This section shall apply with respect 
     to the payment of compensation for months beginning on or 
     after the end of the 90-day period beginning on the date of 
     the enactment of this Act.
       (d) Compensation Defined.--For purposes of this section, 
     the term ``compensation'' has the meaning given that term in 
     section 5313 of title 38, United States Code.

     SEC. 507. ELIMINATION OF REQUIREMENT FOR PROVIDING A COPY OF 
                   NOTICE OF APPEAL TO THE SECRETARY OF VETERANS 
                   AFFAIRS.

       (a) Repeal.--Section 7266 is amended by striking subsection 
     (b).
       (b) Conforming Amendments.--Such section is further 
     amended--
       (1) by striking ``(1)'' after ``(a)'';
       (2) by redesignating paragraph (2) as subsection (b);
       (3) by redesignating paragraph (3) as subsection (c) and 
     redesignating subparagraphs (A) and (B) thereof as paragraphs 
     (1) and (2); and
       (4) by redesignating paragraph (4) as subsection (d) and by 
     striking ``paragraph (3)(B)'' therein and inserting 
     ``subsection (c)(2)''.

     SEC. 508. INCREASE IN FISCAL YEAR LIMITATION ON NUMBER OF 
                   VETERANS IN PROGRAMS OF INDEPENDENT LIVING 
                   SERVICES AND ASSISTANCE.

       (a) Increase in Limitation.--Section 3120(e) is amended by 
     striking ``five hundred'' and inserting ``2,500''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as of September 30, 2001.

     SEC. 509. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Repeal of Expired Provision.--(1) Section 712 is 
     repealed.
       (2) The table of sections at the beginning of chapter 7 is 
     amended by striking the item relating to section 712.
       (b) Correction of Word Omission.--Section 1710B(c)(2)(B) is 
     amended by inserting ``on'' before ``November 30, 1999''.
       (c) Repeal of Erroneous Cross Reference.--Section 1729B(b) 
     is amended--
       (1) by striking paragraph (1); and
       (2) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (1), (2), and (3), respectively.
       (d) Correction of Cross Reference.--Section 3695(a)(5) is 
     amended by striking ``1610'' and inserting ``1611''.
       (e) Stylistic Correction.--Section 1001(a)(2) of the 
     Veterans' Benefits Improvements Act of 1994 (Public Law 103-
     446; 38 U.S.C. 7721 note) is amended by striking ``and'' at 
     the end of subparagraph (C).
       (f) Correction of Previous Amendment.--Effective November 
     30, 1999, and as if included therein as originally enacted, 
     section 204(e)(3) of the Veterans Millennium Health Care and 
     Benefits Act (Public Law 106-117; 113 Stat. 1563) is amended 
     by striking ``and inserting `a';'' and inserting ``the first 
     place it appears and inserting `an';''.

      TITLE VI--UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

     SEC. 601. FACILITATION OF STAGGERED TERMS OF JUDGES THROUGH 
                   TEMPORARY EXPANSION OF THE COURT.

       (a) In General.--Section 7253 is amended by adding at the 
     end the following new subsection:
       ``(h) Temporary Expansion of Court.--(1) During the period 
     from January 1, 2002, through August 15, 2005, the authorized 
     number of judges of the Court specified in subsection (a) is 
     increased by two.
       ``(2)(A) Of the two additional judges authorized by this 
     subsection--
       ``(i) only one may be appointed pursuant to a nomination 
     made in 2002; and
       ``(ii) only one may be appointed pursuant to a nomination 
     made in 2003.
       ``(B) If a judge is not appointed under this subsection 
     pursuant to a nomination made in 2002, a judge may be 
     appointed under this subsection pursuant to a nomination made 
     in 2004. If a judge is not appointed under this subsection 
     pursuant to a nomination made in 2003, a judge may be 
     appointed under this subsection pursuant to a nomination made 
     in 2004. In either case, such an appointment may be made only 
     pursuant to a nomination made before October 1, 2004.
       ``(3) The term of office and the eligibility for retirement 
     of a judge appointed under this subsection, other than a 
     judge described in paragraph (4), are governed by the 
     provisions of section 1012 of the Court of Appeals for 
     Veterans Claims Amendments of 1999 (title X of Public Law 
     106-117; 113 Stat. 1590; 38 U.S.C. 7296 note) if the judge is 
     one of the first two judges appointed to the Court after 
     November 30, 1999.
       ``(4) A judge of the Court as of the date of the enactment 
     of this subsection who was appointed to the Court before 
     January 1, 1991, may accept appointment as a judge of the 
     Court under this subsection notwithstanding that the term of 
     office of the judge on the Court has not yet expired under 
     this section. The term of office of an incumbent judge who 
     receives an appointment as described in the preceding 
     sentence shall be 15 years, which includes any period 
     remaining in the unexpired term of the judge. Any service 
     following an appointment under this subsection shall be 
     treated as though served as part of the original term of 
     office of that judge on the Court.


       ``(5) Notwithstanding paragraph (1), an appointment may not 
     be made to the Court if the appointment would result in there 
     being more than seven judges on the Court who were appointed 
     after January 1, 1997. For the purposes of this paragraph, a 
     judge serving in recall status under section 7257 of this 
     title shall be disregarded in counting the number of judges 
     appointed to the Court after such date.''.
       (b) Stylistic Amendments.--That section is further 
     amended--
       (1) in subsection (b), by inserting ``Appointment.--'' 
     before ``The judges'';
       (2) in subsection (c), by inserting ``Term of Office.--'' 
     before ``The term'';
       (3) in subsection (f), by striking ``(f)(1)'' and inserting 
     ``(f) Removal.--(1)''; and
       (4) in subsection (g), by striking ``(g)(1)'' and inserting 
     ``(g) Rules.--(1)'.

     SEC. 602. REPEAL OF REQUIREMENT FOR WRITTEN NOTICE REGARDING 
                   ACCEPTANCE OF REAPPOINTMENT AS CONDITION TO 
                   RETIREMENT FROM THE COURT.

       Section 7296(b)(2) is amended by striking the second 
     sentence.

     SEC. 603. TERMINATION OF NOTICE OF DISAGREEMENT AS 
                   JURISDICTIONAL REQUIREMENT FOR THE COURT.

       (a) Termination.--Section 402 of the Veterans' Judicial 
     Review Act (division A of Public Law 100-687; 102 Stat. 4122; 
     38 U.S.C. 7251 note) is repealed.
       (b) Attorney Fees.--Section 403 of the Veterans' Judicial 
     Review Act (102 Stat. 4122; 38 U.S.C. 5904 note) is repealed.
       (c) Construction.--The repeal in subsection (a) may not be 
     construed to confer upon the United States Court of Appeals 
     for Veterans Claims jurisdiction over any appeal or other 
     matter not within the jurisdiction of the Court as provided 
     in section 7266(a) of title 38, United States Code.
       (d) Applicability.--The repeals made by subsections (a) and 
     (b) shall apply to any appeal filed with the United States 
     Court of Appeals for Veterans Claims--
       (1) on or after the date of the enactment of this Act; or
       (2) before the date of the enactment of this Act but in 
     which a final decision has not been made under section 7291 
     of title 38, United States Code, as of that date.

     SEC. 604. REGISTRATION FEES.

       (a) Fees for Court-Sponsored Activities.--Subsection (a) of 
     section 7285 is amended by adding at the end the following 
     new sentence: ``The Court may also impose a registration fee 
     on persons (other than judges of the Court) participating at 
     judicial conferences convened pursuant to section 7286 of 
     this title or in any other court-sponsored activity.''.
       (b) Use of Fees.--Subsection (b) of such section is amended 
     by striking ``for the purposes of (1)'' and all that follows 
     through the period and inserting ``for the following 
     purposes:
       ``(1) Conducting investigations and proceedings, including 
     employing independent counsel, to pursue disciplinary 
     matters.
       ``(2) Defraying the expenses of--
       ``(A) judicial conferences convened pursuant to section 
     7286 of this title; and
       ``(B) other activities and programs of the Court that are 
     intended to support and foster communication and 
     relationships between the Court and persons practicing before 
     the Court or the study, understanding, public commemoration, 
     or improvement of veterans law or of the work of the 
     Court.''.
       (c) Clerical Amendments.--(1) The heading for such section 
     is amended to read as follows:

     ``Sec. 7285. Practice and registration fees''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 72 is amended to read as 
     follows:

``7285. Practice and registration fees.''.

     SEC. 605. ADMINISTRATIVE AUTHORITIES.

       (a) In General.--Subchapter III of chapter 72 is amended by 
     inserting after section 7286 the following new section:

     ``Sec. 7287. Administration

       ``Notwithstanding any other provision of law, the Court of 
     Appeals for Veterans Claims may exercise, for purposes of 
     management, administration, and expenditure of funds of the 
     Court, the authorities provided for such purposes by any 
     provision of law (including any limitation with respect to 
     such provision of law) applicable to a court of the United 
     States (as that term is defined in section 451 of title 28), 
     except to the extent that such provision of law is 
     inconsistent with a provision of this chapter.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item related to section 7286 the following new item:

``7287. Administration.''.

  Mr. ROCKEFELLER. Mr. President, as chairman of the Committee on 
Veterans' Affairs, I urge the Senate to pass H.R. 1291, the proposed 
``Veterans Education and Benefits Expansion Act of 2001.''
  The pending measure is the final compromise version of an omnibus 
bill

[[Page 26094]]

that improves a wide variety of veterans benefits, such as the amount 
and flexibility of the Montgomery GI bill, enhances compensation to 
Gulf War veterans, as well as to Vietnam veterans with Agent Orange-
related conditions, increases the VA home loan guaranty amount, extends 
VA's authority to provide home loans to Reservists and on Native 
American tribal land, and augments burial benefits. The key provisions 
are described in more detail below. I refer my colleagues seeking more 
detail to the Joint Explanatory Statement accompanying this statement.
  H.R. 1291, which I will refer to as the ``compromise agreement,'' 
makes significant enhancements to educational benefits for veterans and 
their families. I thank my colleagues in the House for working with our 
committee staff to enhance the education benefits that help pay back 
veterans for the service they have given our Nation. Today's Montgomery 
GI bill, MGIB, provides a valuable recruitment and retention tool for 
the Armed Services. As a transition benefit, it allows veterans to gain 
the skills they need to adjust productively to civilian life when they 
return from service.
  I am very pleased that the compromise bill, in section 101, will 
increase the MGIB basic monthly benefit to $800 per month beginning in 
January 2002, $900 in 2002, and $985 in 2003. I am even more proud that 
H.R. 1291 also takes the next step to keep pace with education needed 
for success in high-technology fields. As our colleagues know, many 
servicemembers leave the military with skills that place them in demand 
for careers in the technology sector. But even these veterans may 
require additional coursework to convert their military skills to 
civilian careers. Sections 104 and 110 of the committee bill will allow 
veterans to use their Montgomery GI bill educational benefits to pay 
for short-term, high technology courses that enable veterans to earn 
the credentials they need to gain entry to lucrative civilian-sector 
careers.
  Currently, the MGIB provides a basic monthly benefit for education 
costs. This payment structure is designed to assist veterans pursuing 
traditional 4-year degrees at universities. However, in today's fast 
paced, high-tech economy, traditional degrees may not always be the 
best option. Many veterans are pursuing forms of nontraditional 
training, such as short-term courses that lead to certification in a 
technical field. In certain fields, these certifications are a 
prerequisite to employment.
  These courses, such as Microsoft or Cisco systems training, may be 
offered through training centers, private contractors to community 
colleges, or the companies themselves. They often last just a few weeks 
or months, and can cost many thousands of dollars. The way MGIB is paid 
out in monthly disbursements is not suited to this course structure. 
For example, MGIB would pay less than $1,400 for a 2-month course that 
could cost as much as $10,000.
  The percentage of veterans who actually use the MGIB benefits they 
have earned and paid for is startlingly low, 45 percent of eligible 
veterans, according to VA's Program Evaluation of the Montgomery GI 
bill published in April 2000, despite almost full enrollment in the 
program by servicemembers. By increasing the flexibility of the MGIB 
program, we will permit more veterans to take advantage of these 
benefits. This legislation gives veterans the right to choose the kind 
of educational program that will be best for them.
  This legislation will modify the payment method to accommodate the 
compressed schedule of these courses. Specifically, section 104 allows 
veterans to receive an accelerated payment equal to 60 percent of the 
cost of the program. This is comparable to VA's MGIB benefit for flight 
training, for which VA reimburses 60 percent of the costs. The dollar 
value of the accelerated payment would then be deducted from the 
veteran's remaining entitlement. Section 110 allows courses offered by 
these providers to be covered by MGIB.
  I am extremely proud that section 103 of this legislation will 
restore educational and vocational rehabilitation and training benefits 
for servicemembers and reservists who must leave their course of study 
to serve on active duty, such as military members called away to serve 
in connection with the current National Emergency declared in response 
to the events of September 11, 2001. This provision will amend a 
provision that restores such entitlements for servicemembers and 
reservists called to active duty for the Persian Gulf War. In 1997, 
Congress similarly expanded educational benefits restoration for the 
Selected Reserve Program.
  Section 102 will increase the Dependent's Educational Allowance, DEA, 
for dependents and eligible spouses of veterans. Congress created this 
educational program in 1968 to provide educational opportunities to 
children whose education would be impeded or interrupted because of the 
disability or death of a parent from a disease or injury incurred or 
aggravated in the Armed Forces. In addition, surviving spouses of 
veterans who do not remarry are generally eligible for the educational 
allowance in order to assist them in preparing to support themselves 
and their families at the standard-of-living level that the veteran 
could have been expected to provide for his or her family but for the 
service-connected disability or death. Children and surviving spouses 
of servicemembers who are missing in action for 90 days, captured in 
the line of duty by a hostile force, or detained or interned by a 
foreign government, are also eligible for the educational allowance.
  DEA is available for full-time, three-quarter time or half-time 
attendance at an institution of higher learning, for students taking 
correspondence courses, pursuing special restorative training, or 
apprenticeship training. The increase in DEA for full-time students 
would be to $670 from $608 on January 1, 2002, with no cost-of-living 
adjustment that year. The allowance for a three-quarter time student 
would increase to $503 from $456, and the allowance for half-time 
pursuit would increase to $335 from $304.
  As many of my colleagues remember, questions about the long-term 
consequences of exposure to Agent Orange arose during the Vietnam War. 
Decades later, veterans of that war still await clear answers. A series 
of ongoing reviews by the National Academy of Sciences has helped to 
provide some of those answers, such as the potential link between 
exposure to chemicals in Agent Orange and respiratory cancers. The 
legislation before us would continue these scientific reviews, and 
extend the Secretary of Veterans Affairs' authority to act upon new 
scientific evidence.
  Currently, Vietnam veterans can claim service-connected benefits for 
respiratory cancers, but only if those cancers are diagnosed within 30 
years of their Vietnam service. Section 201 would remove that time 
limit, which the last scientific review preliminarily found to be 
without clear basis. However, to ensure that this decision is based 
upon sound evidence, the provision also allows the Secretary to request 
a scientific review by NAS specifically addressing whether a time limit 
on manifestation of respiratory cancers is warranted, and to impose 
such a limit if supported by scientific findings. Should the 
Secretary's requested review result in a finding of a more restrictive 
latency period for manifestation of these respiratory cancers, the 
compromise agreement would ensure that the families and survivors of 
these veterans remain eligible for VA benefits. Finally, this bill also 
restores a VA presumption, eliminated by a Court decision, that all in-
country Vietnam veterans were exposed to Agent Orange.
  Following the Gulf War, returning troops began to report a range of 
unexplained illnesses that many attributed to their service, but that 
could not be linked conclusively to a specific battlefield hazard. In 
1994, Congress passed the Persian Gulf War Veterans' Benefits Act, 
allowing the Secretary to compensate certain Gulf War veterans disabled 
by ``undiagnosed illnesses'' for which no other causes could be 
identified. The term ``undiagnosed illnesses''

[[Page 26095]]

has been interpreted by VA to preclude any veteran from eligibility who 
has received a diagnosis, even if that diagnosis is merely a 
descriptive label for a collection of unexplained symptoms. This 
legislation would authorize the Secretary to compensate an eligible 
Gulf War veteran disabled by a ``medically unexplained chronic 
multisymptom illness defined by a cluster of signs or symptoms,'' such 
as chronic fatigue syndrome or fibromyalgia. Rather than defining Gulf 
War illnesses, section 202 of this legislation would correct an unfair 
situation that penalizes Gulf War veterans whose physicians have 
embraced changes in medical terminology in the past decade.
  Since 1933, there has been a prohibition on paying benefits to an 
incompetent veteran who has no dependents and who has assets of $1,500 
or more, if the veteran is being provided institutional health care by 
the Government. Then, incompetent individuals might be 
institutionalized for years. It was believed that a large estate based 
on the veteran's benefits should not be allowed to build up just to 
pass to the state upon the veteran's death. Now, treatment modalities 
have changed and veterans are more likely to cycle in and out of 
treatment, which results in virtually constant suspension and 
reinstatement of their benefits.
  Last year, in Public Law 106-419, Congress addressed this anomaly in 
law. Although we had hoped to fully eliminate the disparate and 
discriminatory treatment of incompetent veterans, due to cost 
restraints we were only able to raise the dollar amount of the cutoff 
to five times the 100 percent compensation rate. I am enormously proud 
that Section 204 would fully repeal the limitation on payment thereby 
ending decades of prejudice and discrimination against these veterans.
  The committee bill also enhances and extends home loan programs. As 
most of our colleagues appreciate, VA does not provide a direct home 
loan for servicemembers and veterans. Instead, it provides a guaranty 
to mortgage lenders should the borrower veteran be unable to meet the 
payments and go into foreclosure. A VA guaranty allows a veteran to buy 
a home valued at up to four times the guaranty amount. The price of 
homes in major metropolitan areas has increased significantly in the 
last several years, yet the VA guaranty amount has not been increased 
since 1994. VA estimates that during fiscal year 2001, VA will have 
guaranteed 250,000 loans for veterans. Section 401 will increase the 
home loan guaranty amount to $60,000 from the current $50,750, 
supporting a loan of up to $240,000.
  Section 403 will extend for 2 years the authority for housing loan 
guaranties for members of the Selected Reserve, currently set to expire 
in 2007. Reservists must serve 6 years in order to become eligible for 
a VA-guaranteed loan. In order for the home loan to be used as a 
recruiting incentive now, the benefit must be authorized beyond 6 
years. It is especially appropriate that we recognize the importance of 
those who serve in the Selected Reserves as we rely on them yet again, 
in this time of national crisis.
  In conclusion, I want to thank Senator Specter and his benefits 
staff, Bill Tuerk, Jon Towers, and Chris McNamee, for diligently 
working with me and my benefits staff, Bill Brew, Mary Schoelen, Julie 
Fischer, Bridget Baylin, Chris Reinard, and Dahlia Melendrez, to craft 
this legislation during this extraordinary year. I urge my colleagues 
to support these vital enhancements to veterans benefits. As has been 
the case in previous years and is particularly important in light of 
our country's current military actions, this truly represents a 
bipartisan commitment to our Nation's veterans.
  I ask unanimous consent that the Joint Explanatory Statement be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

Summary of H.R. 1291, Compromise Agreement, the Veterans Education and 
                     Benefits Expansion Act of 2001

       The Senate considered S. 1088, as amended, struck the 
     existing text and incorporated it into H.R. 1291, then passed 
     it by unanimous consent on December 7, 2001.


                           Education Matters

       Increases the rate of the basic benefit of the Montgomery 
     G.I. Bill (MGIB) from the current $672 per month to $800 per 
     month beginning on January 1, 2002; $900 per month on October 
     1, 2002; and $985 per month on October 1, 2003.
       Increases the Dependent's Educational Allowance to $670 
     from $608 for dependents and spouses of veterans who are 
     totally disabled or who die as a result of a service-
     connected condition, effective January 1, 2002.
       Restores lost educational and vocational rehabilitation 
     benefits for servicemembers and reservists who must leave 
     their course of study to serve on active duty, such as 
     military members called away to serve in the current National 
     Emergency.
       Creates flexibility in the payment method for MGIB to 
     partially pay for short-term/high tech courses. It would 
     accelerate payment of up to 60 percent of the cost of an 
     approved program that leads to employment in a high 
     technology industry.


                    Compensation and Pension Matters

       Removes the arbitrary 30-year limit for manifestation of 
     Agent Orange-related respiratory cancers in Vietnam veterans 
     and tasks the National Academy of Sciences (NAS) to continue 
     reviewing scientific evidence on effects of dioxin or 
     herbicide exposure through October 1, 2014.
       Extends authority of the VA to presume service connection 
     for additional diseases as based on future NAS reports 
     through September 30, 2015.
       Codifies presumption that Type 2 diabetes in Vietnam 
     veterans exposed to Agent Orange is service-connected.
       Authorizes the Secretary to pay compensation to Gulf War 
     veteran chronically disabled by a diagnosed, but medically 
     unexplained multisymptom illness, such as chronic fatigue 
     syndrome.
       Allows the Secretary to protect the grant of service 
     connection for an undiagnosed illness when a Persian Gulf War 
     veteran participates in a VA-sponsored medical research 
     project.


                            Housing Matters

       Increases the VA home loan guaranty amount to $60,000 from 
     the current $50,750. The VA guaranty amount has not been 
     increased since 1994.
       Extends the Native American veterans housing loan program, 
     which allows loans on tribal lands for four years. Extends 
     the authority for housing loan guaranties for members of the 
     Selected Reserves for two years.
       Increases the grant for specially adapted housing for 
     severely disabled veterans to $48,000 from $43,000.


                             Burial Matters

       Increases VA burial benefits for service-connected deaths 
     of veterans from $1,500 to $2,000.
       Allows VA to furnish a bronze marker to permanently 
     commemorate the service of a veteran on an already marked 
     grave in a private cemetery.

 Explanatory Statement on House Amendment to Senate Amendments to H.R. 
                                  1291

       The House amendment to the Senate amendments to H.R. 1291 
     reflect a compromise agreement that the House and Senate 
     Committees on Veterans' Affairs have reached on H.R. 801, 
     H.R. 1291, H.R. 2540, H.R. 3240, and S. 1088. H.R. 801 passed 
     the House on March 27, 2001. H.R. 1291 passed the House on 
     June 19, 2001. H.R. 2540 passed the House on July 31, 2001. 
     H.R. 3240 passed the House on November 13, 2001. The Senate 
     considered S. 1088 (hereinafter known as the ``Senate bill'') 
     on December 7, 2001. This measure was incorporated in H.R. 
     1291 as an amendment and passed the Senate by unanimous 
     consent on December 7, 2001.
       The House and Senate Committees on Veterans' Affairs have 
     prepared the following explanation of H.R. 1291, as amended, 
     (hereinafter referred to as the ``Compromise Agreement''). 
     Differences between the provisions contained in the 
     Compromise Agreement and the related provisions of H.R. 801, 
     H.R. 1291, H.R. 2540, H.R. 3240, and S. 1088 are noted in 
     this document, except for clerical corrections, conforming 
     changes made necessary by the Compromise Agreement, and minor 
     drafting, technical, and clarifying changes.

               Title I--Educational Assistance Provisions


INCREASES IN RATES OF BASIC EDUCATIONAL ASSISTANCE UNDER THE MONTGOMERY 
                                GI BILL

     Current law
       Section 3011 of title 38, United States Code, establishes 
     basic educational assistance entitlement under the All-
     Volunteer Force Educational Assistance Program, commonly 
     referred to as the Montgomery GI Bill or MGIB--Active Duty 
     program. Section 3015 establishes the base amount of such 
     educational assistance at the monthly rate of $528 for a 3-
     year period of service and $429 for a 2-year period of 
     service. These amounts increased to $650 per month and $528 
     per month, respectively, on November 1, 2000. With the 
     addition of a cost-of-living adjustment (COLA) on October 1, 
     2001, the rates are $672 and $546, respectively.
     House bill
       Section 2(a)(1) of H.R. 1291 would amend section 3015(a)(1) 
     to increase the amount of

[[Page 26096]]

     educational benefits under the Montgomery GI Bill for an 
     approved program of education on a full-time basis from the 
     current monthly rate of $650 ($672 with (COLA) for an 
     obligated period of active duty of 3 or more years to $800 
     effective October 1, 2001, $950 effective October 1, 2002, 
     and $1,100 effective October 1, 2003.
       Section 2(a)(2) of H.R. 1291 would amend section 3015(b)(1) 
     of title 38, United States Code, to increase the amount of 
     educational benefits for an obligated period of active duty 
     of 2 years from the current monthly rate of $528 ($546 with 
     COLA) to $650 effective October 1, 2001, $772 effective 
     October 1, 2002, and $894 effective October 1, 2003.
       Section 2(b) of H.R. 1291 would suspend the statutory 
     annual adjustment in MGIB rates based on the Consumer Price 
     Index beginning in fiscal year 2002 and reinstate that 
     adjustment beginning in fiscal year 2005.
     Senate bill
       Section 101 of the Senate bill would increase the amount of 
     educational benefits under the Montgomery GI Bill for 
     veterans whose original service obligation was 3 or more 
     years to $700 in fiscal year 2002, $800 in fiscal year 2003, 
     and $950 in fiscal year 2004. For veterans whose original 
     service obligation was 2 years, the monthly educational 
     benefit would be increased to $569 in fiscal year 2002, $650 
     in fiscal year 2003, and $772 in fiscal year 2004.
     Compromise agreement
       Section 101 of the compromise agreement would increase the 
     amount of educational benefits under the Montgomery GI Bill 
     for an obligated period of active duty of 3 or more years to 
     $800 effective January 1, 2002; $900 effective October 1, 
     2002; and $985 effective October 1, 2003. For service 
     obligation of 2 years, increases are to $650 effective 
     January 1, 2002; $732 effective October 1, 2002; and $800 
     effective October 1, 2003. The COLA is suspended for Fiscal 
     Years 2003 and 2004.


 INCREASE IN RATES OF SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE

     Current law
       Chapter 35 of title 38, United States Code, provides 
     educational assistance to spouses and dependent children of 
     veterans who are totally disabled or who die as a result of a 
     service-connected condition. Eligible persons are paid at a 
     monthly rate of $588, $441, and $294, respectively, for full, 
     three-quarter, and half-time studies. The cost-of-living 
     adjustment (COLA) furnished on October 1, 2001, increased 
     these rates to $608, $456, and $304, respectively.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 106 of the Senate bill would increase the monthly 
     amount of education benefits provided under chapter 35 of 
     title 38, United States Code, for full-time students from 
     $588 ($608 with the COLA) to $690, from $441 ($456 of COLA) 
     to $517 for three-quarter time students, and from $294 ($306 
     with the COLA) to $345 for half-time students (rates in 
     current law after cost-of-living adjustment). These increases 
     would take effect October 1, 2001.
     Compromise agreement
       Section 102 of the compromise agreement would follow the 
     language of the Senate bill, except that it would increase 
     the monthly amount of education benefits provided to full-
     time students in traditional education programs, training in 
     business or industry, correspondence courses or special 
     restorative training from $608 to $670 on January 1, 2002. 
     The compromise agreement would also include increases for on-
     job training, apprenticeship, and farm cooperative programs.


restoration of certain education benefits of individuals being ordered 
                             to active duty

     Current law
       Sections 3013(f)(2), 3231(a)(5), and 3511(a)(2)(B)(i) of 
     title 38, United States Code, provide that no educational 
     allowance paid to servicemembers, reservists, or eligible 
     dependents shall be counted against the total length or 
     amount of their education entitlement if the pursuit of an 
     educational objective was interrupted as a result of being 
     ordered to serve in connection with the Persian Gulf War.
     House bill
       H.R. 3240 would restore entitlement under the Montgomery GI 
     Bill (MGIB), Veterans' Educational Assistance Program (VEAP), 
     and Survivors' and Dependents' Educational Assistance program 
     (DEA) for any servicemembers, reservists, or DEA recipients 
     called to active duty during Operation Enduring Freedom and 
     at any time in the future.
     Senate bill
       Section 105 of the Senate bill would restore entitlement 
     under the MGIB, VEAP, and Survivor's and DEA programs for any 
     servicemembers, reservists, or DEA recipients called to 
     active duty in connection with the National Emergency 
     declared by the Presidential Proclamation dated September 14, 
     2001.
     Compromise bill
       Section 103 of the compromise agreement follows the House 
     language and adds entitlement restoration for persons 
     pursuing education or training under chapter 31 of title 38, 
     United States Code. Further, the period during which the 
     person may use his or her educational benefits under chapters 
     31 or 35 would be the period equal to the length of active 
     service for which the person is recalled, plus four months.


accelerated payments of educational assistance under montgomery gi bill 
    for education leading to employment in high technology industry

     Current law
       Section 3014 of title 38, United States Code, provides that 
     the basic educational benefit available under the Montgomery 
     GI Bill be disbursed in up to 36 monthly installments. 
     Benefits are provided for each month in which the MGIB 
     participant is certified to be participating in a course of 
     study. If requested by a veteran, section 3680(d)(2) of title 
     38, United States Code, allows for an advance payment of 
     educational assistance in an amount equivalent to the 
     allowance for the month, or fraction thereof, in which 
     pursuit of an education program will commence, plus the 
     allowance for the succeeding month. This payment structure is 
     geared primarily toward the pursuit of traditional two- and 
     four-year degrees.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 103 of the Senate bill would further expand the 
     Montgomery GI Bill benefit to accommodate a compressed 
     schedule of courses leading to employment in a high 
     technology industry by authorizing accelerated payment 
     covering up to 60% of the cost of a high technology course, 
     provided the cost of such course exceeds 200% of the monthly 
     MGIB rate. This lump sum would be deducted from the veteran's 
     remaining MGIB entitlement.
     Compromise agreement
       Section 104 of the compromise agreement follows the Senate 
     language, effective October 1, 2002.


   eligibility for montgomery gi bill benefits or certain additional 
                          vietnam-era veterans

     Current law
       Section 3011 of title 38, United States Code, provides that 
     a Vietnam-era veteran may convert his or her Vietnam-era GI 
     Bill benefit to the Montgomery GI Bill educational benefit, 
     if the veteran had eligibility for Vietnam-era GI Bill 
     benefits as of December 31, 1989, was on active duty on 
     October 19, 1984, and served 3 continuous years after June 
     30, 1985.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 104 of the Senate bill would enable Vietnam-era 
     veterans to convert their Vietnam-era GI Bill benefits to 
     Montgomery GI Bill benefits if the veteran had eligibility 
     for the Vietnam-era GI Bill benefits as of December 31, 1989, 
     was not on active duty on October 19, 1984, and served 3 
     continuous years in the Armed Forces on or after July 1, 
     1985.
     Compromise agreement
       Section 105 of the compromise agreement follows the Senate 
     language.


  INCREASE IN MAXIMUM ALLOWABLE ANNUAL ROTC AWARD FOR ELIGIBILITY FOR 
                 BENEFITS UNDER THE MONTGOMERY GI BILL

     Current law
       Sections 3011(c)(3)(B) and 3012(d)(3)(B) of title 38, 
     United States Code, provide that $2,000 is the maximum annual 
     amount of a partial scholarship that a participant in the 
     Senior Reserve Officers' Training Corps (SROTC) may receive 
     and still be eligible for basic educational assistance 
     entitlement for service on active duty under the Montgomery 
     GI Bill educational assistance program.
     House bill
       Section 101 of H.R. 801 would increase from $2,000 to 
     $3,400 per year the amount a student under SROTC may receive 
     in scholarship assistance and still retain eligibility for 
     the Montgomery GI Bill--Active Duty under chapter 30, of 
     title 38, United States Code.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 106 of the compromise agreement follows the House 
     language.


                 EXPANSION OF WORK-STUDY OPPORTUNITIES

     Current law
       Section 3485(a)(1) of title 38, United States Code, 
     establishes work-study policies for veteran-students and 
     eligible dependents. In general, VA work-study students may 
     prepare or process VA paperwork at schools or VA facilities, 
     provide care at VA hospitals and domiciliaries, or work at 
     Department of Defense facilities in certain circumstances.
     House bill
       Section 102 of H.R. 801 would expand work-study 
     opportunities for veteran-students and

[[Page 26097]]

     eligible dependents to include: outreach services furnished 
     by State Approving Agencies to servicemembers and veterans; 
     activities for veteran-students and/or dependents (who have 
     declared an academic major) within the department of an 
     academic discipline that complements and reinforces the 
     program of education pursued by the veteran-student; and the 
     provision of chapter 17 of title 38, United States Code, 
     domiciliary care and nursing home and hospital care to 
     veterans, including state veterans homes.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 107 of the compromise agreement follows the House 
     language that excludes work-study opportunities within the 
     department of the veteran-student's academic discipline, and 
     adds additional work-study opportunities through national and 
     state veterans cemeteries.


   ELIGIBILITY FOR SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE 
   BENEFITS OF SPOUSES AND SURVIVING SPOUSES OF VETERANS WITH TOTAL 
                     SERVICE-CONNECTED DISABILITIES

     Current law
       Spouses of veterans who die of service-connected 
     conditions, who are rated as totally and permanently 
     disabled, or who die while rated as totally and permanently 
     disabled, are eligible for Survivors' and Dependents' 
     Educational Assistance (DEA) benefits. Prior to Ozer v. 
     Principi, a 2001 decision by the U.S. Court of Appeals for 
     Veterans Claims, 14 Vet. App. 257 (2001), VA applied a 10-
     year delimiting period during which spouses were eligible to 
     use their DEA benefits. VA had been following regulations 
     stating that the 10-year delimiting period began when 
     eligibility is first established. However, the statute which 
     authorized the DEA regulations prescribed that a spouse may 
     not receive educational assistance beyond 10 years after the 
     last occurrence of three eligibility criteria, one of which 
     is the veteran's death. In its Ozer decision, the Court 
     invalidated the VA regulation, reasoning that the delimiting 
     period established by VA was in conflict with the authorizing 
     statute.
     House bill
       The House bills contains no comparable provision.
     Senate bill
       Section 107 of the Senate bill would reinstate a 10-year 
     delimiting period in which spouses may, upon first becoming 
     eligible, use DEA benefits. Spouses made eligible for DEA 
     under more than one of the eligibility criteria would have 
     two separate 10-year delimiting periods in which to use their 
     DEA benefits, but in no case would their aggregate 
     entitlement exceed 45 months.
     Compromise agreement
       Section 108 of the compromise agreement follows the Senate 
     language.


 EXPANSION OF SPECIAL RESTORATIVE TRAINING BENEFIT TO CERTAIN DISABLED 
                      SPOUSES OR SURVIVING SPOUSES

     Current law
       Section 3541 of title 38, United States Code, provides that 
     eligible children entitled to assistance under the Survivors' 
     and Dependents' Educational Assistance program of chapter 35 
     may receive special restorative training to overcome or 
     lessen the effects of a physical or mental disability and 
     enable them to undertake a program of education.
     House bill
       Section 104 of H.R. 801 would expand the special 
     restorative training benefit provided under the chapter 35 
     program to include certain disabled spouses or surviving 
     spouses.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 109 of the compromise agreement follows the House 
     language.


 INCLUSION OF CERTAIN PRIVATE TECHNOLOGY ENTITIES IN THE DEFINITION OF 
                        EDUCATIONAL INSTITUTION

     Current law
       Section 3452(c) of title 38, United States Code, defines 
     ``educational institution'' as any public or private 
     elementary school, secondary school, vocational school, 
     correspondence school, business school, junior college, 
     teachers' college, college, normal school, professional 
     school, university, scientific or technical institution 
     furnishing education for adults. Section 3501(a)(6) of title 
     38, United States Code, uses a substantively identical 
     definition with the addition of any other institution if it 
     furnishes education at the secondary school level or above.
     House bill
       Section 103 of H.R. 801 would expand the definition of an 
     educational institution to include any private entity that 
     offers, either directly or under an agreement with another 
     entity, a course or courses to fulfill a requirement for the 
     attainment of a license or certificate generally recognized 
     as necessary to obtain, maintain, or advance in employment in 
     a profession or vocation in a technological occupation, as 
     determined by the Secretary.
     Senate bill
       Section 105 of the Senate bill contains a substantively 
     identical provision.
     Compromise agreement
       Section 110 of the compromise agreement follows the Senate 
     language.


                           DISTANCE EDUCATION

     Current law
       Section 3680A(a)(4) of title 38, United States Code, limits 
     the enrollment of an eligible veteran to an accredited 
     independent study program (including open circuit television) 
     leading to a standard college degree.
     House bill
       Section 105 of H.R. 801 would permit eligible veterans to 
     receive VA education benefits while pursuing non college-
     degree courses that are offered through independent study by 
     institutions of higher learning.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 111 of the compromise agreement follows the House 
     language.

             Title II--Compensation and Pension Provisions


  modification and extension of authorities on presumption of service-
 connection for herbicide-related disabilities of vietnam-era veterans

     Current law
       Under section 1116(a)(2)(F) of title 38, the presumption of 
     service-connection with respect to respiratory cancers is 
     limited to those cancers manifesting within 30 years of a 
     servicemember's last active-duty date in Vietnam.
       The CAVC decision in McCartt v. West, 12 Vet. App. 164 
     (1999) held that the Department of Veterans Affairs (VA) can 
     only presume exposure to Agent Orange if the Vietnam veteran 
     has one of the diseases listed as related to such exposure in 
     38 U.S.C. Sec. 1116(a) or 38 CFR Sec. 3.309(e). VA practice 
     prior to this decision had been to presume exposure for 
     anyone who had served in Vietnam during the statutorily 
     defined period of war unless there was affirmative evidence 
     to the contrary.
       Section 1116 authorizes the Secretary of Veterans' Affairs 
     to establish, through regulation, a presumption of service-
     connection for diseases associated with exposure to Agent 
     Orange. The Secretary is further authorized to contract with 
     the National Academy of Sciences for the purposes of studying 
     the effects of dioxin, and is required to base the 
     establishment of a presumption of service-connection on NAS 
     findings. This authority commenced in 1993 and will expire at 
     the end of Fiscal Year 2003.
     House bill
       Section 201 of H.R. 2540 codifies VA's July 9, 2001, 
     regulation providing benefits for Vietnam veterans with Type 
     2 diabetes.
     Senate bill
       Section 201 of the Senate bill would remove the 30-year 
     limitation on the manifestation of respiratory cancer. This 
     section would also change the result of the CAVC decision in 
     McCartt by requiring VA to presume exposure to Agent Orange 
     for all persons serving in Vietnam during the statutorily 
     defined period of that conflict.
       Section 201 would extend the Secretary's authority to 
     determine a presumption of service-connection for additional 
     diseases; based on future NAS Reports, through 2011. VA's 
     authority to contract with the NAS to review scientific 
     evidence on the effects of dioxin or herbicide exposure would 
     be extended through 2011.
     Compromise agreement
       Section 201(a)(1) of the compromise agreement follows the 
     Senate language, but modifies the effective date for 
     subsection (a) of the Senate bill to January 1, 2002. Section 
     201(a)(2) of the compromise directs the Secretary to enter 
     into a contract with the National Academy of Sciences 
     specifically to review available scientific literature on 
     exposure to herbicides and dioxin and the development of 
     respiratory cancers. Section 201(a)(3) allows the Secretary 
     to consider whether an upper limit on manifestation of 
     respiratory cancers can be supported, and to impose such a 
     limit by regulation if warranted, by available scientific 
     evidence. Section 201(4) protects a grant of service-
     connection made under this section for purposes of all 
     benefits administered by the Secretary; section 201(b) of the 
     compromise agreement provides a statutory presumption of 
     service-connection of Diabetes Type 2 for veterans exposed to 
     Agent Orange and follows the House language; section 201(c) 
     of the compromise agreement presumes that veterans who served 
     in the Republic of Vietnam during the time period when 
     herbicides were used were exposed to herbicides and follows 
     the Senate language; and section 201(d) of the compromise 
     agreement extends the Secretary's authority to contract with 
     NAS through October 1, 2014, and extends the Secretary's 
     authority to determine a presumption of service-connection 
     through September 30, 2015.

[[Page 26098]]




  payment of compensation for persian gulf war veterans with certain 
                          chronic disabilities

     Current law
       Public Law 103-446 gave the Secretary the authority to 
     compensate a Gulf War veteran who suffers from disabilities 
     that cannot be diagnosed or clearly defined, when other 
     causes cannot be identified. Section 1117 of title 38, United 
     States Code, sets forth parameters for compensating 
     disabilities occurring in Gulf War veterans.
     House bill
       Section 202 of H.R. 2540 would expand, effective April 1, 
     2002, the definition of ``undiagnosed illness'' for Gulf War 
     veterans to include fibromyalgia, chronic fatigue syndrome, 
     and chronic multisymptom illness, as well as other illnesses 
     that cannot be clearly defined. Signs and symptoms listed in 
     the House bill that are associated with an undiagnosed 
     illness include headache, muscle pain, joint pain, neurologic 
     signs or symptoms, neuropsychological signs or symptoms, 
     signs or symptoms involving the respiratory system (upper or 
     lower), sleep disturbances, gastrointestinal signs or 
     symptoms, cardiovascular signs or symptoms, abnormal weight 
     loss, and/or menstrual disorders.
     Senate bill
       Section 202(b) of the Senate bill would expand the 
     definition of ``undiagnosed illness'' by adding poorly 
     defined chronic multisymptom illnesses of unknown etiology, 
     regardless of diagnosis, characterized by two or more of the 
     symptoms already listed in VA regulations. This section would 
     also extend the presumptive period for service connection for 
     Gulf War veterans by 10 years.
     Compromise agreement
       Section 202 of the compromise agreement authorizes the 
     Secretary effective March 1, 2002, to pay compensation to any 
     eligible Gulf War veteran chronically disabled by an 
     ``undiagnosed illness,'' a ``medically unexplainable chronic 
     multisymptom illness defined by a cluster of signs or 
     symptoms,'' or ``any diagnosed illness that the Secretary 
     determines in regulations prescribed under subsection (d) 
     warrants a presumption of service-connection'' (or any 
     combination of these). The term ``undiagnosed illnesses'' has 
     been interpreted by VA to preclude from eligibility for 
     benefits under sections 1117 or 1118 of title 38, United 
     States Code, any veteran who has received a diagnosis, even 
     if that diagnosis is merely a descriptive label for a 
     collection of unexplained symptoms. This provision's addition 
     of ``medically unexplained chronic multisymptom illness 
     defined by a cluster of signs or symptoms'' to the list of 
     compensable conditions fully implements the intent of Public 
     Law 103-446. Public Law 103-446 authorized the Secretary to 
     compensate certain Gulf War veterans disabled by symptoms 
     that could not be connected conclusively to specific wartime 
     exposures otherwise not compensable under other existing 
     statutory bases.
       In selecting this language, it is the intent of the 
     Committees to ensure eligibility for chronically disabled 
     Gulf War veterans not withstanding a diagnostic label by a 
     clinician in the absence of conclusive pathophysiology or 
     etiology. The compromise agreement's definition encompasses a 
     variety of unexplained clinical conditions, characterized by 
     overlapping symptoms and signs, that share features such as 
     fatigue, pain, disability out of proportion to physical 
     findings, and inconsistent demonstration of laboratory 
     abnormalities. Aaron and Buchwald, A Review of the Evidence 
     for Overlap Among Unexplained Clinical Conditions, 134(9) 
     Annals of Internal Med:868-880 (2001). Although chronic 
     fatigue syndrome, fibromyalgia, and irritable bowel syndrome 
     are the most common diagnoses under this definition, other 
     conditions that may be characterized similarly include other 
     chronic musculoskeletal pain disorders and chronic headache 
     disorders.
       By listing the first three diagnoses as examples, it is the 
     Committees' intend to give guidance to the Secretary rather 
     than to limit eligibility for compensation based upon other 
     similarly described conditions that may be defined or 
     redefined in the future. The Committees do not intent this 
     definition to assert that the cited syndromes can be 
     clinically or scientifically linked to Gulf War service based 
     on current evidence, nor do they intend to include chronic 
     multisymptom illnesses of partially understood etiology and 
     pathophysiology such as diabetes or multiple sclerosis.
       In evaluating chronic multisymptom illnesses, the 
     Committees expect that VA will develop a schedule for rating 
     disabilities based on severity of symptoms and the degree to 
     which these impair a veteran's ability to obtain and retain 
     substantially gainful employment. The ratings schedule 
     already established by VA in section 4.88b of 38 CFR (6354) 
     for chronic fatigue syndrome bases the degree of disability 
     on the veteran's incapacitation rather than specific medical 
     findings. This schedule can be used as a model for rating 
     disabilities stemming from chronic multisymptom illnesses in 
     general.
       The compromise agreement includes a technical correction 
     substituting a date certain of October 1, 2010, for ``10 
     years after the last day of the fiscal year in which the 
     National Academy of Sciences (NAS) submits the first report'' 
     as written under current law in section 1603(j) of the 
     Persian Gulf War Veterans Act of 1998. This provision 
     requires the Secretary to contract with the NAS for five 
     biennial reports on Gulf War health issues. The compromise 
     also amends sections 1117 and 1118 of title 38, United States 
     Code, to clarify that the authority of the Secretary to 
     determine that a disease warrants presumptive service-
     connection based on these NAS reports continuing through 
     September 30, 2011.


Preservation of Service Connection for Undiagnosed illnesses to Provide 
      for Participation in Research Projects by Gulf War Veterans

     Current law
       Under current law, the Secretary does not have specific 
     authority to protect a Persian Gulf War veteran's grant of 
     service connection for an undiagnosed illness if, as a result 
     of participating in a medical research study, the condition 
     is diagnosed.
     House bill
       Section 203 of H.R. 2540 would authorize the Secretary to 
     protect the grant of service connection for an undiagnosed 
     illness when a Persian Gulf War veteran participates in a VA-
     sponsored medical research project. The Secretary would be 
     required to publish in the Federal Register any medical 
     research project whose participants would be protected under 
     this section. The Secretary's authority extends to research 
     projects commenced before, on or after date of enactment.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 203 of the compromise agreement protects veterans 
     participating in medical research projects sponsored by the 
     Department from loss of service-connection if the Secretary 
     determines that such protection is necessary for conduct of 
     the medical research. The Secretary is required to publish in 
     the Federal Register a list of medical research projects 
     sponsored by the Department for which service-connection is 
     protected under this section.


    Repeal of the Limitation on Payments of Benefits to Incompetent 
                                Veterans

     Current law
       Subsections (b) and (c) of section 5503 of title 38, United 
     States Code, establishes that compensation and pension 
     benefits cannot be issued to an incompetent, 
     institutionalized veteran with no dependents whose assets 
     exceed five times the 100-percent compensation rate. Public 
     Law 106-419 raised the dollar amount of the cutoff from 
     $1,500 to its present level.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 209 of the Senate bill would repeal the asset 
     limitation on payment of benefits to incompetent 
     institutionalized veterans who have no dependents.
     Compromise agreement
       Section 204 of the compromise agreement follows the Senate 
     language.


  extension of round-down requirement for compensation cost-of-living 
                              adjustments

     Current law
       Under sections 1104 and 1303 of title 38, United States 
     Code, the Secretary has the authority to round down to the 
     next lower whole dollar amount in the computation of cost-of-
     living adjustments through fiscal year 2002.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 205 of the compromise agreement extends the 
     Secretary's authority to round down to the next lower whole 
     dollar amount the computation of cost-of-living adjustments 
     through Fiscal Year 2011.


    Expansion of presumptions of permanent and total disability for 
           veterans applying for nonservice-connected pension

     Current law
       Under section 1502(a) of title 38, United States Codes, 
     applicants for nonservice-connected pensions are considered 
     to be totally and permanently disabled if they are 
     unemployable, unable to follow a gainful occupation, or 
     determined by the Secretary to be totally and permanently 
     disabled. It is the Committees' understanding that VA 
     regional office directors have been verbally instructed to 
     implement a policy of presuming permanent and total 
     disability for veterans who are patients in nursing homes for 
     long-term care, or veterans determined permanently disabled 
     by the Social Security Administration.
     House bill
       The House bills contain no comparable provision.

[[Page 26099]]


     Senate bill
        Section 203 of the Senate bill would presume that veterans 
     who are in nursing homes for long-term care; are determined 
     to be permanently disabled by the Social Security 
     Administration (SSA); are at least 65 years old and have no 
     current, recurring income from employment; or are 
     unemployable as a result of a disability reasonably certain 
     to continue throughout life, are permanently and totally 
     disabled for purposes of nonservice-connected pension. This 
     provision would be made retroactive to September 10, 2001.
     Compromise agreement
       According to information provided to the Committees, VA has 
     recently instructed its employees to adjudicate pension 
     claims for veterans who are patients in long-term care 
     facilities or who have been determined to be permanently 
     disabled by the Social Security Administration without 
     requiring a VA determination of disability. The Committees 
     express their strong disapproval of the verbal manner in 
     which the policy changes concerning evaluation of disability 
     for patients in long-term care and those determined disabled 
     by SSA were implemented. Verbally advising VA regional office 
     directors to implement major policy changes without issuing 
     either formal regulations or written guidance invites 
     misinterpretation and confusion. The Committees strongly urge 
     the Secretary to communicate all interpretative changes to 
     policy in writing to appropriate officials, to make such 
     instructions available to the public, and to comply with the 
     notice and comment requirements of the Administrative 
     Procedures Act for all substantive rules.
       Section 206(a)(1) of the compromise agreement provides 
     specific statutory authority for the evidentiary presumption 
     verbally communicated to regional office directors for 
     determining the eligibility of patients in a nursing home for 
     long-term care to be disabled for purposes of pension 
     benefits. The compromise agreement follows the Senate 
     language and provides for an effective date of September 17, 
     2001, the date VA regional offices are believed to have 
     implemented this policy.
       Section 206(a)(2) of the compromise agreement provides that 
     persons who have been determined disabled by the Social 
     Security Administration (SSA) will be considered disabled for 
     purposes of pension benefits. Since the Committees believe 
     that a SSA disability determination is an appropriate 
     evidentiary basis for considering a veteran disabled, the 
     compromise agreement considers a veteran disabled if SSA has 
     made a determination of disability. The bill provides for an 
     effective date of September 17, 2001, the date VA regional 
     offices are believed to have implemented this policy.
       Section 206(a)(3) of the compromise agreement provides that 
     a person shall be considered disabled if the veteran is 
     unemployable as a result of disability reasonably certain to 
     continue throughout the life of the person. The compromise 
     agreement follows the Senate language.
       Section 206(a)(4) restates provisions currently contained 
     in section 1502(a)(1) and (2) of current law. The compromise 
     agreement follows the Senate language.


eligibility of veterans 65 years of age or older for veterans' pension 
                                benefits

     Current law
       Public Law 90-77 provided that a veteran is presumed 
     disabled for purposes of pension benefits at age 65. Public 
     Law 101-508 revoked the Secretary's authority to presume that 
     a veteran was disabled for purposes of pension benefits at 
     age 65. Although the Secretary lacks statutory authority to 
     presume disability at age 65, it is the Committees' 
     understanding that VA regional office directors were verbally 
     instructed to implement a policy of presuming disability for 
     pension applicants aged 65 and older.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 203(a)(3) of the Senate bill would restore the 
     presumption of disability for purposes of pension eligibility 
     at age 65 for veterans who based on evidence available to the 
     Secretary have no current recurring income from employment.
     Compromise agreement
       According to information provided to the Committees, VA has 
     recently instructed its employees to adjudicate pension 
     claims for veterans who are aged 65 or older and who have no 
     wages from employment without requiring a VA determination of 
     disability. The Committees express their strong disapproval 
     of the Secretary's decision to ignore the requirements of 
     Public Law 101-508 prohibiting a presumption of disability 
     for purposes of pension eligibility at age 65 by verbally 
     reinstating the policy. when the Secretary believes that 
     legislation passed by Congress and enacted into law is unwise 
     or administratively inefficient, it is the Secretary's 
     responsibility to propose appropriate legislation to the 
     Congress so that the problem identified can be corrected. 
     Verbally instructing VA regional office directors to ignore 
     statutory requirements and to presume that veterans are 
     disabled at age 65 without authorizing legislation violates 
     current law. The Committees expect the Secretary to advise 
     Congress of any statutory provisions, which in the judgment 
     of the Secretary are detrimental to caring for our Nation's 
     veterans, and to transmit appropriate corrective legislative 
     proposals for consideration.
       Section 207 of the compromise agreement provides that a 
     pension will be provided to wartime veterans aged 65 and 
     older without regard to disability. These veterans must still 
     meet the nondisability requirements of section 1521 of title 
     38, United States Code, such as income and net worth. In 
     determining that benefits will be provided at age 65 without 
     regard to employment status, the Committees noted that any 
     veteran employed full-time and receiving at least a minimum 
     wage would not qualify for pension based on the pension 
     income limitation.
       Nonetheless, the Committees agree that a policy of 
     requiring proof of disability for an aged wartime veteran 
     with incomes below the pension benefit amount involves use of 
     scarce agency resources without a commensurate return. The 
     Committees have determined that aged wartime veterans should 
     be provided a needs-based pension under conditions similar to 
     that provided for veterans of the Indian Wars and the 
     Spanish-American War. The compromise agreement renders a 
     wartime veteran eligible for a needs-based pension upon 
     attaining age 65 effective September 17, 2001, the date VA 
     regional offices are believed to have implemented a policy of 
     providing a presumption of disability for wartime veterans 
     aged 65 and older.

             Title III--Transition and Outreach Provisions


 AUTHORITY TO ESTABLISH OVERSEAS VETERANS ASSISTANCE OFFICES TO EXPAND 
                         TRANSITION ASSISTANCE

     Current law
       Sections 7722, 7723 and 7724 of title 38, United States 
     Code, set forth VA's responsibilities with respect to 
     outreach services, including outreach provided to separating 
     servicemembers and eligible dependents. These sections do not 
     specifically provide for the establishment and maintenance of 
     veterans' assistance offices on military installations 
     outside of the United States, its territorial possessions, or 
     the Commonwealth of Puerto Rico. Through a funding 
     arrangement with the Department of Defense, VA currently 
     assigns representatives overseas on a rotational basis in a 
     number of locations with large military populations.
     House bill
       Section 201(a) of H.R. 801 would amend section 7723(a) of 
     title 38, United States Code, to give the Secretary specific 
     discretionary authority to establish veterans' assistance 
     offices on such military installations in other locations as 
     the Secretary determines necessary. In doing so, the 
     Secretary would be required to consult with the Secretary of 
     Defense.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 301 of the compromise agreement follows the House 
     language.


                    TIMING OF PREPARATION COUNSELING

     Current law
       The Departments of Defense, Veterans Affairs, and Labor 
     assist separating servicemembers with benefits and services 
     to facilitate a successful transition to civilian life. 
     Currently, section 1142(a)(1) of title 10, United States 
     code, requires that preseparation counseling begin not less 
     than 90 days prior to discharge or release.
     House bill
       Section 202 of H.R. 801 would change the timing of 
     preseparation counseling to begin as soon as possible during 
     the 24-month period preceding an anticipated retirement and 
     as soon as possible during the 12-month period preceding 
     other separations, but in no event later than 90 days before 
     the date of discharge or release. In case of an unanticipated 
     retirement or other separation with 90 days fewer prior to 
     separation, preseparation counseling shall begin as soon as 
     possible within the remaining period of service. Except in 
     the case of a servicemember who is being retired or separated 
     for a disability, the Secretary concerned would not be 
     permitted to provide preseparation counseling to a 
     servicemember who is being discharged or released before the 
     completion of that servicemember's first 180 days of active 
     duty service.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 302 of the compromise agreement follows the House 
     language.


improvement in education and training outreach services for separating 
                      servicemembers and veterans

     Current law
       Section 3672(d) of title 38, United States Code, requires 
     that the Secretary of Veterans Affairs actively promote the 
     development of programs for purposes of section 3677

[[Page 26100]]

     (on the job training) and section 3687 (apprenticeship or 
     other on-job training).
     House bill
       Section 203 of H.R. 801 would require that State Approving 
     Agencies (SAA), in addition to the Secretary, actively 
     promote the development of VA programs of training on the job 
     (including programs of apprenticeship) under chapter 36 of 
     title 38, United States Code. Section 203 would also require 
     SAAs, in conjunction with outreach services furnished by the 
     Secretary for education and training benefits under chapter 
     77 of title 38, United States Code, to conduct programs and 
     provide outreach services to eligible persons and veterans 
     about education and training benefits available under 
     applicable Federal and State law.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 303 of the compromise agreement follows the House 
     language.


               improvement of veterans outreach programs

     Current law
       Section 7722(c) of title 38, United States Code requires 
     the Secretary to distribute full information to eligible 
     veterans and eligible dependents regarding all benefits and 
     services to which they may be entitled under laws 
     administered by the Department and may, to the extent 
     feasible, distribute information on other governmental 
     programs (including manpower and training programs) that the 
     Secretary determines would be beneficial to veterans.
     House bill
       Section 205 of H.R. 801 would require VA, whenever a 
     veteran or dependent first applies for any benefit (including 
     a request for burial or related benefits or on application 
     for life insurance proceeds), to provide information 
     concerning all benefits and health services under programs 
     administered by the Secretary.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 304 of the compromise agreement follows the House 
     language with a modification that the Secretary provides the 
     information within 3 months of the veteran or dependent 
     making an initial contact with VA.

                       Title IV--Housing Matters


   increase of the va home loan guaranty amount for construction and 
                           purchase of homes

     Current law
       Under section 3703 of title 38, United States Code, VA 
     currently provides a guaranty of up to $50,750 on home 
     mortgage loans issued to eligible veterans by private 
     lenders.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 301 of the Senate bill would increase the maximum 
     home mortgage loan guaranty amount to $63,175.
     Compromise agreement
       Section 401 of the compromise agreement would increase the 
     maximum home mortgage loan guaranty amount to $60,000.


           native american veteran housing loan pilot program

     Current law
       Section 3761 of title 38, United States Code, established a 
     pilot program whereby the Secretary may make direct housing 
     loans to Native American veterans to permit such veterans to 
     purchase, construct, or improve dwellings on trust land. The 
     pilot program expires on December 31, 2001.
       Current law requires a tribe to enter into a Memorandum of 
     Understanding (MOU) with VA before VA can make home loans to 
     member of that tribe.
     House bill
       Section 404(a) of H.R. 2540 would extend to December 31, 
     2005, VA's direct loan program for Native American veterans 
     living on trust lands. Section 404(b) would amend section 
     3762(a)(1) of title 38, United States Code, to permit VA to 
     make a direct housing loan to a member of a Native American 
     tribe that has entered into an MOU with another federal 
     agency if that MOU generally conforms to the requirements of 
     VA's program.
     Senate bill
       Section 302 of the Senate bill extends the Native American 
     veterans housing loan program to December 31, 2005. It also 
     extends the requirement of an annual report under section 
     3762(j) through 2006.
     Compromise agreement
       Section 402 of the compromise agreement follows the House 
     language with the addition of the reporting requirement until 
     2006.


           Modification of Loan Assumption Notice Requirement

     Current law
       Section 3714(d) of title 38, United States Code, requires 
     that all VA loans and security instruments contain on the 
     first page in letters two and one half times the size of the 
     regular type face used in the document, a statement that the 
     loan is not assumable without approval of VA or its 
     authorized agent.
     House bill
       Section 405 of H.R. 2540 would modify the requirement in 
     section 73714(d) of title 38, United States Code, by 
     requiring that such notice appear conspicuously on at least 
     one instrument (such as a VA rider) under guidelines 
     established by VA in regulations.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 403 of the compromise agreement follows the House 
     language.


      Increase in Assistance Amount For Specially Adapted Housing

     Current law
       The Secretary is authorized in chapter 21 of title 38, 
     United States Code, to assist eligible veterans in acquiring 
     suitable housing and adaptations with special fixtures made 
     necessary by the nature of the veterans's service-connected 
     disability, and with the necessary land. The assistance 
     authorized for a severely disabled veteran shall not exceed 
     $43,000. The amount authorized for less severely disabled 
     veterans shall not exceed $8,250.
     House bill
       Section 305 of H.R. 801 would increase the grant for 
     specially adapted housing for severely disabled veterans to 
     $48,000 and for less severely disabled veterans to $9,250.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 404 of the compromise agreement follows the House 
     language.


                 Extension of Other Housing Authorities

     Current law
       Subsection 3702(a)(2)(E) of title 38, United States Code, 
     authorizes VA to provide housing loan guaranties to members 
     of the Selected Reserve through September 30, 2007; 
     subsection 3720(h)(2) authorizes VA to issue guaranties of 
     timely principal and interest payments on trust-issued 
     securities backed by vendee loans through December 31, 2008; 
     subsection 3729(b)(2) authorizes VA to charge a loan fee for 
     VA home loan guaranties through October 1, 2008; and 
     subsection 3732(c)(11) of title 38, United States Code, 
     authorizes VA to apply specified procedures for liquidation 
     sales to defaulted home loans guaranteed by VA through 
     October 1, 2008.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 303(a) of the Senate bill extends VA's authority to 
     provide housing loan guaranties to members of the Selected 
     Reserve through September 30, 2011; section 303(b) extends 
     VA's loan asset sale authority through December 31, 2011; 
     section 303(c) extends the VA's authority to charge a loan 
     fee for VA home loan guaranties through October 1, 2011; and 
     section 303(d) extends VA's authority to apply procedures for 
     liquidation sales to defaulted home loans guaranteed by VA 
     through October 1, 2011.
     Compromise agreement
       Section 405(a) of the compromise agreement extends the 
     housing loan guaranties to members of the Selected Reserve 
     through September 30, 2009; sections 405(b) through (d) of 
     the compromise agreement follows the Senate language.

                         Title V--Other Matters


                      increase in burial benefits

     Current law
       Under section 2307 of title 38, United States Code, the 
     Secretary, upon request of the survivors of a veteran, shall 
     pay the burial and funeral expenses incurred in connection 
     with the death of a veteran. In the case of a veteran who 
     dies as the result of a service-connected disability, the 
     amount would not exceed the greater of (1) $1,500, or (2) the 
     amount authorized to be paid under section 8134(a) of title 
     5, United States Code, in the case of a federal employee 
     whose death occurs as the result of an injury sustained in 
     the performance of duty. In the case of nonservice-connected 
     deaths, section 2302 of title 38, United States Code provides 
     for a payment in the amount of $300 for veterans in receipt 
     of compensation or pension. Section 2303(b) of title 38, 
     United States Code, also authorizes the Secretary to pay a 
     $150 plot allowance for eligible veterans buried in a state 
     or private cemetery.
     House bill
       Section 301(a) of H.R. 801 would increase the burial and 
     funeral allowance payable for service-connected deaths from 
     $1,500 to $2,000, and for nonservice connected deaths from 
     $300 to $500. Section 301(b) would increase the burial plot 
     allowance from $150 to $300. Section 301(c) would require 
     that such amounts payable under sections 2302 (funeral 
     expenses), 2303 (plot allowance), and 2307 (death from 
     service-connected disability) would be indexed to cost-of-
     living increases in benefits paid under the Social Security 
     Act, title 42, United States Code.
     Senate bill
       Section 401 of the Senate bill would increase the burial 
     benefits for service-connected deaths from $1,500 to $2,000.

[[Page 26101]]


     Compromise agreement
       Section 501 of the compromise bill would increase burial 
     benefits for service-connected deaths from $1,500 to $2,000 
     effective September 11, 2001, and increase the plot allowance 
     from $150 to $300 effective December 1, 2001.


       government markers for marked graves at private cemeteries

     Current law
       Section 2306 of title 38 limits the provision of headstones 
     and grave markers by VA to the unmarked graves of veterans, 
     or to commemorate the grave of an eligible person whose 
     remains are unavailable. A veteran's family is permitted to 
     obtain a private marker later. However, if a veteran's family 
     obtains a private marker first, the VA may not furnish a 
     headstone or grave marker.
     House bill
       The House bill contains no comparable provision.
     Senate bill
       Section 402 of S. 1088 would allow the Secretary of VA to 
     furnish bronze markers for already privately marked graves. 
     This section would permit the marker to be located in an 
     appropriate place to be determined by the cemetery concerned, 
     within the grounds of the cemetery. Eligibility for grave 
     markers would apply to deaths occurring after the date of 
     enactment of this provision and deaths occurring before its 
     enactment, but after November 1, 1990, so long as the request 
     for the marker is made within 4 years after the enactment 
     date.
     Compromise agreement
       Section 502 of the compromise agreement creates a five-year 
     program requiring the Secretary to furnish a bronze marker to 
     those families that request a government marker for the 
     marked grave of a veteran at a private cemetery. The 
     Secretary is required to furnish the marker directly to the 
     cemetery and the family is required to place the marker on 
     the veteran's gravesite. Not later then February 1, 2006, the 
     Secretary shall submit to the Committees on Veterans' Affairs 
     of the Senate and the House of Representatives a report on 
     the use of this five-year authority to include: the rate and 
     cost of the use of the benefit by fiscal year; an assessment 
     if the extent to which markers are being delivered to 
     cemeteries and placed on gravesites; and the Secretary's' 
     recommendation for extension or repeal of the December 31, 
     2006, expiration date. The Committees note that the Secretary 
     should implement this provision in a flexible manner in light 
     of requests for grave markers pre-dating this provision.


increase in amount of assistance for automobile and adaptive equipment 
                     for certain disabled veterans

     Current law
       Under section 3902(a) of title 38, United States Code, the 
     Secretary may pay up to $8,000 (including all state, local, 
     and other taxes) to an eligible disabled service member or 
     veteran to purchase an automobile.
     House bill
       Section 304 of H.R. 801 would increase the amount of 
     assistance for automobile grants from $8,000 to $9,000.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 503 of the compromise agreement follows the House 
     language.


 extension of limitation on pension for certain recipients of medicaid-
                       covered nursing home care

     Current law
       Under section 5503(f) of title 38, United States Code, VA 
     pension paid to certain veterans receiving Medicaid-covered 
     nursing home care is reduced to $90 per month. VA's authority 
     to reduce the pension amount expires on September 30, 2008.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 210 of the Senate bill would extend through 
     September 30, 2011, the $90 per month cap on VA pensions paid 
     to certain veterans receiving Medicaid-covered nursing home 
     care.
     Compromise agreement
       Section 504 of the compromise agreement follows the Senate 
     language.


    prohibition of veterans receiving benefits while fugitive felons

     Current law
       Public Law 104-193 bars fugitive felons from receiving 
     Supplemental Security Insurance from the Social Security 
     Administration and food stamps from the Department of 
     Agriculture. Currently, there is no law barring veterans who 
     are fugitive felons from receiving VA benefits.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 207 of the Senate bill would prohibit veterans and 
     eligible dependents from receiving veterans benefits while a 
     ``fugitive,'' which is defined under this section as fleeing 
     to avoid prosecution, or custody or confinement after 
     conviction, for an offense, or an attempt to commit an 
     offense, which is a felony under the laws of the place from 
     which the veteran flees.
     Compromise agreement
       Section 505 of the compromise agreement substantially 
     follows the Senate language.


     limitation on payment of compensation for veterans remaining 
                   incarcerated since october 7, 1980

     Current law
       Under section 5313(d) of title 38, United States Code, 
     compensation paid to any veteran incarcerated after October 
     7, 1980, is reduced to a level equal to the compensation rate 
     for a 10 percent disability with the balance allowed to be 
     apportioned to the veteran's dependents, if any.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 208 of the Senate bill would apply the restrictions 
     listed in section 5313(d) of title 38, United States Code, to 
     veterans incarcerated before October 7, 1980. This provision 
     would not affect any payments made prior to the enactment of 
     this legislation.
     Compromise agreement
       Section 506 of the compromise agreement follows the Senate 
     language. It is the Committees' hope that VA will receive all 
     necessary cooperation from the state and federal prison 
     systems in implementing this provision, such as the timely 
     compiling of data of incarcerated veterans affected by this 
     change in law.


elimination of requirement for providing a copy of notice of appeal to 
                   the secretary of veterans affairs

     Current law
       Section 7266(b) of title 38, United States Code, requires 
     an individual appealing a decision of the Board of Veterans' 
     Appeals to furnish the Secretary of Veterans Affairs with a 
     copy of his or her notice of appeal to the U.S. Court of 
     Appeals for Veterans Claims.
     House bill
       Section 406 of H.R. 2540 repeals section 7266(b) of title 
     38, United States Code.
     Senate bill
       The Senate bill contains no comparable provision.
     Compromise agreement
       Section 507 of the compromise agreement follows the House 
     language.


    Increase in Fiscal Year Limitation on the Number of Veterans in 
         Programs of Independent Living Services and Assistance

     Current law
       Under section 3120 of title 38, United States Code, VA's 
     Vocational Rehabilitation and Employment Service maintains an 
     independent living program designed to assist service-
     disabled veterans, who are to disabled to retrain for 
     employment, in achieving and maintaining defined independent 
     living outcomes. Subsection 3120(e) of this title limits 
     participation in this program to no more than 500 veteran 
     participants per fiscal year. Despite this limitation, VA has 
     been providing services to approximately 2,400 veterans per 
     year.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 501 of the Senate bill would eliminate the 500-
     veteran cap for participants of the independent living 
     program, and would retain first priority to veterans for whom 
     there is a reasonable feasibility of achieving a vocational 
     goal but for their service-connected condition.
     Compromise agreement
       Section 508 of the compromise agreement would increase the 
     maximum number of veterans allowed to participate in the VA 
     independent living program to 2,500, and would retain first 
     priority to veterans for whom there is a reasonable 
     feasibility of achieving a vocational goal but for their 
     service-connected condition.
       While the Committees acknowledge the value of this program, 
     the Committees strongly disapprove of VA's apparent decision 
     to ignore the limitations in current law. When a limitation 
     contains in current law proves detrimental to veterans, the 
     Committees expect that the Secretary will not proceed to 
     ignore the law, but rather to present the Congress with 
     appropriate corrective legislation. In the event that the 
     number currently authorized proves to be insufficient to meet 
     the needs of our Nation's disabled veterans, the Committees 
     direct the Secretary to propose appropriate legislation to 
     Congress.

          Title VI--U.S. Court of Appeals for Veterans Claims


 Facilitation of Staggered Terms of Judges Through Temporary Expansion 
                              of the Court

     Current law
       Section 7253 of title 38, United States Code, requires that 
     the U.S. Court of Appeals for

[[Page 26102]]

     Veterans Claims (CAVC) shall be composed of no more than 
     seven judges and one shall be chief judge. After the Court's 
     establishment in 1988, the initial seven judges were 
     appointed within 16 months of one another. A new judge was 
     appointed in 1997 to fill a vacancy created by the death of 
     one of the originally appointed judges. The chief judge 
     retired in 2000, and his seat has not yet been filled. By 
     2005, the terms of five of the remaining judges will have 
     ended. This will likely leave four simultaneously vacant 
     seats by 2005.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 601 of the Senate bill would temporarily expand the 
     membership of the CAVC by two seats until August 2005 in 
     order to bridge the retirement of the original judges.
     Compromise agreement
       Section 601 of the compromise agreement follows the Senate 
     language.


  Repeal of Requirement for Written Notice Regarding Acceptance of Re-
         Appointment as Condition to Retirement From the Court

     Current law
       Section 7296(b)(2) of title 38, United States Code, 
     requires a judge who has not been reappointed following the 
     expiration of his or her appointed term, before that judge is 
     65 years old, as a precondition to retirement, to advise the 
     President, in writing, that the judge is willing to accept 
     reappointment.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 602 of the Senate bill would repeal the requirement 
     that a judge provide written notice indicating willingness to 
     accept reappointment as a precondition to retirement from the 
     CAVC.
     Compromise agreement
       Section 602 of the compromise agreement follows the Senate 
     language.


termination of notice of disagreement as jurisdictional requirement for 
                               the court

     Current law
       Under section 402 of the Veterans' Judicial Review Act 
     (Public Law 100-687; 38 U.S.C. Sec. 7251 note) (VJRA), a 
     Notice of Disagreement (NOD) must have been filed on or after 
     November 18, 1988, in order to establish jurisdiction 
     necessary for the CAVC to review a claimant's case. Section 
     403 of the VJRA (102 Stat. 4122; 38 U.S.C. Sec. 5904 note) 
     limits the payment of attorney fees to cases in which a post-
     November 17, 1988, NOD has been filed.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 603(a) of the Senate bill would eliminate the post-
     November 17, 1988, NOD as a prerequisite to jurisdiction at 
     the CAVC. It would not affect the requirement of a NOD to 
     trigger appeal within VA of a decision nor any other 
     prerequisite to review at the Court. Section 603(b) of the 
     Senate bill would similarly eliminate the limitation on 
     payment of attorney fees to those cases in which a post-
     November 17, 1988, NOD has been filed.
     Compromise agreement
       Section 603 of the compromise agreement follows the Senate 
     language.


                           registration fees

     Current law
       Section 7285 of title 38, United States Code, provides that 
     the CAVC may impose periodic registration fees on persons 
     admitted to practice before the Court. These fees may be used 
     for purposes of hiring independent counsel to pursue 
     disciplinary matters and defraying administrative costs for 
     the implementation of the standards of proficiency prescribed 
     for practice before the Court.
     House bill
       Section 301(a) of H.R. 2540 would authorize the Court to 
     collect registration fees for persons participating in a 
     judicial conference or other Court-sponsored activities where 
     appropriate.
       Section 301(b) of H.R. 2540 would amend section 7285(b) of 
     title 38, United States Code, to add that registration fees 
     paid to the Court may also be used generally in connection 
     with practitioner disciplinary proceedings and in support of 
     certain bench-and-bar veterans' law educational activities.
     Senate bill
       Section 604 of the Senate bill contains a comparable 
     provision.
     Compromise agreement
       Section 604 of the compromise agreement follows the House 
     language.


                       administrative authorities

     Current law
       The CAVC, established by Congress under Article I of the 
     United States Constitution to exercise judicial power, has 
     unusual status as an independent tribunal that does not have 
     the same general administrative authority as courts 
     established under Article III of the Constitution. Because of 
     its status, the Court does not have available to it certain 
     general authorities that would normally be available were it 
     part of the executive branch or another administrative 
     structure.
     House bill
       Section 302 of H.R. 2540 would add a new section 7287 to 
     title 38, United States Code, to make available to the Court 
     generally the same management, administrative, and 
     expenditure authorities that are available to Article III 
     courts of the United States.
     Senate bill
       Section 605 of the Senate bill contains a comparable 
     provision.
     Compromise agreement
       Section 605 of the compromise agreement follows the House 
     language.


                   legislative provisions not adopted

  authority for accelerated payments of basic educational assistance 
                        under montgomery gi bill

     Current law
       Section 3014 of title 38 provides that the basic 
     educational benefit available under the Montgomery GI Bill be 
     disbursed in up to 36 monthly installments. Benefits are 
     provided for each month in which the MGIB participant is 
     certified to be participating in a course of study. If 
     requested by a veteran, section 3680(d)(2) of title 38 allows 
     for an advance payment of educational assistance in an amount 
     equivalent to the allowance for the month, or fraction 
     thereof, in which pursuit of an education program will 
     commence, plus the allowance for the succeeding month.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 102 of the Senate bill would allow Montgomery GI 
     Bill participants to receive their otherwise monthly payment 
     as an accelerated lump-sum payment for the month in which a 
     course of study begins, plus up to 4 months worth of 
     educational assistance allowance. In the case of a term, 
     quarter, or semester, the accelerated lump-sum payment would 
     equal the amount of the aggregate monthly educational 
     assistance allowance for the entire term, quarter, or 
     semester.


              presumptive period for undiagnosed illnesses

     Current law
       Section 1117(b) of title 38 United States Code authorizes 
     the Secretary to extend the period of presumption of service 
     connection for Persian Gulf War veterans disabled by 
     undiagnosed illnesses by regulation. On October 12, 2001, the 
     Secretary published a regulation extending the presumptive 
     period through December 31, 2006.
     House bill
       Section 204 of H.R. 2540 extends the presumptive period for 
     undiagnosed illnesses to December 31, 2003.
     Senate bill
       Section 202(a) of the Senate bill extended the presumptive 
     period for undiagnosed illnesses to December 31, 2011, or 
     such later date as the Secretary may prescribe by regulation.


revision of rules with respect to net worth limitation for eligibility 
for pensions for veterans who are permanently and totally disabled from 
                   a nonservice-connected disability

     Current law
       The VA Pension Program at chapter 15 of title 38, United 
     States Code, provides financial assistance based upon need to 
     veterans who have had at least 90 days of military service, 
     including at least one day of wartime service, and who are 
     totally and permanently disabled for employment purposes as a 
     result of disability not related to their military service. 
     In determining eligibility for pension benefits, VA is 
     required to consider not only the family income, but also the 
     family's ``net worth.'' The value of farm and ranch land is 
     included in determining net worth unless VA determines that 
     land can be sold at ``no substantial sacrifice,'' section 
     3.275 of chapter 38, Code of Federal Regulations.
     House bill
       Section 306 of H.R. 801 would revise the rule with respect 
     to net worth limitation for VA's means-tested pension program 
     by excluding the value of property used for farming, 
     ranching, or similar agricultural purposes.
     Senate bill
       The Senate bill contains no comparable provision.


  modification of the time limitation for receipt of claim information

     Current law
       Under section 5103(b) of title 38 there exists a one-year 
     time limit, following notification by the Secretary, on the 
     receipt of information and evidence necessary to substantiate 
     a claim for benefits based on an already complete or 
     substantially complete application. Public Law 106-475 
     established this time limitation and eliminated an identical 
     limitation on the receipt of information and evidence 
     necessary to complete an application for benefits.
     House bill
       The House bills contain no comparable provision.

[[Page 26103]]


     Senate bill
       Section 205 of the Senate bill would restore the one-year 
     time limit on the receipt of information or evidence 
     necessary to complete an application following notification 
     by the Secretary. It would also eliminate the existing one-
     year time limit on information or evidence necessary to 
     substantiate a claim based on a completed or substantially 
     complete application.


 modification of the effective date of change in recurring income for 
                            pension purposes

     Current law
       Section 5112(b)(4) of title 38, United States code, 
     requires VA pensions be reduced or discontinued effective the 
     first day of the month following the month in which the 
     pensioner's net income is reported to have increased.
     House bill
       The House bills contain no comparable provision.
     Senate bill
       Section 206 of the Senate bill would modify the effective 
     date of reduction or discontinuation of compensation or 
     pension by reason of a change in recurring income to the 
     first day of the year following the year in which the 
     pensioner's net income is reported to have changed.


 PAYMENT OF INSURANCE PROCEEDS TO AN ALTERNATE BENEFICIARY WHEN FIRST 
                    BENEFICIARY CANNOT BE IDENTIFIED

     Current law
       Under chapter 19 of title 38, United States Code, there is 
     no time limitation for a first-named beneficiary of a 
     National Service Life Insurance (NSLI) or a United States 
     Government Life Insurance (USGLI) policy to file a claim for 
     proceeds. As a result, when the insured dies and the 
     beneficiary does not file a claim, VA is required to hold the 
     unclaimed funds indefinitely in order to honor any possible 
     future claims by that beneficiary. VA is not permitted to pay 
     the proceeds to an alternate beneficiary unless VA can 
     determine that the first beneficiary predeceased the 
     policyholder.
     House bill
       Section 401 of H.R. 2540 would grant the Secretary of 
     Veterans Affairs the authority to authorize payment of NSLI 
     or USGLI proceeds to an alternate beneficiary when the 
     proceeds have not been claimed by the first-named beneficiary 
     within three years following the death of the policyholder. 
     If no beneficiary has filed a claim within five years of the 
     veteran's death, benefits could be paid to such person as the 
     Secretary determines is equitably entitled to the proceeds of 
     the policy.
     Senate bill
       The Senate bill contains no comparable provision.


    EXTENSION OF COPAYMENT REQUIREMENT FOR OUTPATIENT PRESCRIPTION 
                              MEDICATIONS

     Current law
       Section 1722A(c) of title 38, United States Code, furnishes 
     the Secretary the authority, through September 30, 2002, to 
     require a copayment of $2 for each 30-day supply of 
     medication VA furnishes a veteran on an outpatient basis for 
     the treatment of a nonservice connected disability or 
     condition.
       House bill Section 402 of H.R. 2540 would extend until 
     September 30, 2006, the authority of the Secretary to require 
     a $2 copayment for each 30-day supply of medication.
     Senate bill
       The Senate bill contains no comparable provision.


 DEPARTMENT OF VETERANS AFFAIRS HEALTH SERVICES IMPROVEMENT FUND MADE 
                       SUBJECT TO APPROPRIATIONS

     House bill
       Section 403 of H.R. 2540 would amend section 1729B of title 
     38, United States Code, by making the availability of funds 
     in the VA's Health Services Improvement Fund subject to the 
     provisions of appropriations acts effective October 1, 2001.
     Senate bill
       The Senate bill contains no comparable provision.


 PILOT PROGRAM FOR EXPANSION OF TOLL-FREE TELEPHONE ACCESS TO VETERANS 
                        SERVICE REPRESENTATIVES

     Current law
       VA provides various toll-free automated telephone response 
     systems for veterans to furnish them information on VA 
     benefits and services.
     House bill
       Section 407 of H.R. 2540 would establish a two-year 
     nationwide pilot program to test the benefit and cost 
     effectiveness of expanding current access to VA veterans 
     service representatives through a toll-free telephone number. 
     Under the pilot program, the Secretary would be required to 
     expand the available hours of such access to veterans service 
     representatives to not less than twelve hours on each regular 
     business day across U.S. time zones and not less than six 
     hours on Saturday. The pilot would also require that such 
     service representatives have available to them information 
     about veterans benefits provided by all other federal 
     departments and agencies, and state governments.
     Senate bill
       The Senate bill contains no comparable provision.


 CODIFICATION OF RECURRING PROVISIONS IN ANNUAL DEPARTMENT OF VETERANS 
                      AFFAIRS APPROPRIATIONS ACTS

     Current law
       Each year the Congress appropriates funds to the Department 
     of Veterans Affairs as part of the Departments of Veterans 
     Affairs and Housing and Urban Development, Independent 
     Agencies Appropriations Act. Although the amount of the 
     appropriations varies from year to year, the purposes for 
     which appropriations are made are generally fixed, and change 
     little, if any, from year to year.
     House bill
       Section 409 of H.R. 2540 would codify recurring provisions 
     in annual Department of Veterans Affairs Appropriations Acts.
     Senate bill
       The Senate bill contains no comparable provision.

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