[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[Senate]
[Pages 382-385]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ROCKEFELLER (by request):
  S. 1905. A bill to amend title 38, United States Code, to enhance 
veterans' programs and the ability of the Department of Veterans 
Affairs to administer them; to the Committee on Veterans' Affairs.
  Mr. ROCKEFELLER. Mr. President, today I introduce legislation 
requested by the Secretary of Veterans Affairs, as a courtesy to the 
Secretary and the Department of Veterans Affairs, VA. Except in unusual 
circumstances, it is my practice to introduce legislation requested by 
the Administration so that such measures will be available for review 
and consideration.
  This ``by-request'' bill would, among other things, include care for 
newborn children of women veterans provided by a contract provider 
among those medical services VA is allowed to provide, authorize VA to 
provide dental care to former Prisoners of War, POW, and change the 
definition of ``minority veterans'' to conform to the new Race & Ethnic 
Standards used in Federal statistical reporting and in the 2000 U.S. 
Census.
  I ask unanimous consent that the text of the bill and Secretary 
Principi's transmittal letter that accompanied the draft legislation be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1905

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

     SECTION 1. TABLE OF CONTENTS.

       (a) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Table of contents.
Sec. 2. References to title 38, United States Code.
               TITLE I--VETERANS HEALTH-CARE IMPROVEMENTS

Sec. 101. Care for Newborn Children of Enrolled Women Veterans.
Sec. 102. Outpatient Dental Care for All Former Prisoners of War.
Sec. 103. Pay Comparability for Director, Nursing Service.
                  TITLE II--VETERANS' BENEFIT PROGRAMS

Sec. 201. Limitation on provision of certain benefits.
Sec. 202. Clarification of procedures regarding disqualification of 
              certain individuals for memorialization in veterans 
              cemeteries.
Sec. 203. Clarification of the period for appealing rulings of the 
              Board of Veterans' Appeals.
           TITLE III--VA PROGRAM ADMINISTRATION IMPROVEMENTS

Sec. 301. Repeal of Cap on Number of Non-Career Members of Senior 
              Executive Service Serving in VA.
Sec. 302. Repeal of Preceding-Service Requirement for VA Deputy 
              Assistant Secretaries.
Sec. 303. Revolving Supply Fund Amendments.
Sec. 304. Redefinition of ``minority group member'' in 38 U.S.C. 
              Sec. 544(d).

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

       Except as otherwise expressly provided, whenever in this 
     Act an amendment is expressed in terms of an amendment to 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--VETERANS HEALTH-CARE IMPROVEMENTS

     SEC. 101. CARE FOR NEWBORN CHILDREN OF ENROLLED WOMEN 
                   VETERANS.

       Section 1701 is amended:
       (a) in subsection (6),
       (1) by striking out ``and'' at the end of paragraph (A);
       (2) by adding ``and'' at the end of paragraph (B); and
       (3) by adding at the end the following new paragraph:
       ``(C) care for newborn children.''; and
       (b) by adding at the end the following new subsection:
       ``(11) The term ``care for newborn children'' means care 
     provided to an infant of a woman veteran enrolled in the VA 
     health care system. Such care may be provided until the 
     mother is discharged from the hospital after delivery of the 
     child or for 14 days after the

[[Page 383]]

     date of birth of the child, whichever period is shorter, and 
     only if the Department contracted for the delivery of the 
     child.''.

     SEC. 102. OUTPATIENT DENTAL CARE FOR ALL FORMER PRISONERS OF 
                   WAR.

       Section 1712(a)(1)(F) is amended by striking out ``for a 
     period of not less than 90 days''.

     SEC. 103. PAY COMPARABILITY FOR DIRECTOR, NURSING SERVICE.

       (a) Section 7306(a)(5) is amended by adding at the end 
     thereof, ``The position shall be exempt from the provisions 
     of section 7451 of this title and shall be paid at the 
     maximum rate payable to a Senior Executive Service employee 
     under 5 U.S.C. Sec. Sec. 5304(g) and 5382.''.
       (b) Section 7404(d) is amended by deleting ``section'' the 
     first time it appears and inserting in its place ``sections 
     7306(a)(5) and''.

                  TITLE II--VETERANS' BENEFIT PROGRAMS

     SEC. 201. LIMITATION ON PROVISION OF CERTAIN BENEFITS.

       (a) Prohibitions.--(1) Section 112 is amended by adding at 
     the end the following new subsection:
       ``(c) A certificate shall not be furnished under this 
     program on behalf of a deceased veteran described in section 
     2411(b) of this title.''
       (2) Section 2301 is amended by adding at the end the 
     following new subsection:
       ``(f) A flag shall not be furnished under this section on 
     behalf of a deceased veteran described in section 2411(b) of 
     this title.''
       (3) Section 2306 is amended by adding at the end the 
     following new subsection:
       ``(f)(1) A headstone or marker shall not be furnished under 
     subsection (a) for the unmarked grave of an individual 
     described in section 2411(b) of this title.
       ``(2) A memorial headstone or marker shall not be furnished 
     under subsection (b) for the purpose of commemorating an 
     individual described in section 2411(b) of this title.''
       (b) Effective Date.--The amendments made by this section 
     shall apply to deaths occurring on or after the date of its 
     enactment.

     SEC. 202. CLARIFICATION OF PROCEDURES REGARDING 
                   DISQUALIFICATION OF CERTAIN INDIVIDUALS FOR 
                   MEMORIALIZATION IN VETERANS CEMETERIES.

       Section 2411(a)(2) is amended--
       (1) by striking ``The prohibition'' and inserting ``In the 
     case of a person described in subsection (b)(1) or (b)(2), 
     the prohibition''; and
       (2) by striking ``or finding under subsection (b)'' and 
     inserting ``referred to in subsection (b)(1) or (b)(2), 
     respectively''.

     SEC. 203. CLARIFICATION OF THE PERIOD FOR APPEALING RULINGS 
                   OF THE BOARD OF VETERANS APPEALS.

       (a) Clarification.--Paragraph (1) of section 7266(a) is 
     amended by striking ``notice of the decision is mailed 
     pursuant to section 7104(e) of this title'' and inserting ``a 
     copy of the decision, pursuant to section 7104(e) of this 
     title, is mailed or sent to the claimant's representative or, 
     if the claimant is not represented, mailed to the claimant''.
       (b) Effective Date.--The amendments made by subsection (a) 
     apply to Board of Veterans' Appeals decisions made on or 
     after the date of enactment of this Act.

     TITLE III--VA PROGRAM ADMINISTRATION IMPROVEMENTS

     SEC. 301. REPEAL OF CAP ON NUMBER OF NON-CAREER MEMBERS OF 
                   SENIOR EXECUTIVE SERVING IN VA.

       (a) Section 709(a) is repealed.
       (b) Section 709 is amended by re-designating subsections 
     (b) and (c) as subsections (a) and (b), respectively.

     SEC. 302. REPEAL OF PRECEDING-SERVICE REQUIREMENT FOR VA 
                   DEPUTY ASSISTANT SECRETARIES.

       (a) Section 308(d)(2) is repealed.
       (b) Section 308 is amended by deleting ``(1)'' from 
     subsection (d).

     SEC. 303. REVOLVING SUPPLY FUND AMENDMENTS.

       Section 8121(a) is amended--
       (1) by adding ``and for medical supplies, equipment, and 
     services for the Department of Defense'' after 
     ``Department'';
       (2) in paragraph (2), by adding ``of the Department and the 
     Department of Defense'' after ``appropriations''; and
       (3) in paragraph (3), by adding ``of the Department and the 
     Department of Defense'' after ``appropriations''.

     SEC. 304. REDEFINITION OF ``MINORITY GROUP MEMBER'' IN 38 
                   U.S.C. Sec. 544(D).

       Section 544(d) is amended to read as follows:
       ``(d) In this section, the term ``minority group member'' 
     means an individual who is--
       (1) American Indian or Alaska Native;
       (2) Asian;
       (3) African American;
       (4) Native Hawaiian or other Pacific Islander; or
       (5) Hispanic, Spanish, or Latino.''
                                  ____

                                         The Secretary of Veterans


                                                      Affairs,

                                  Washington, DC, January 9, 2002.
     Hon. Richard B. Cheney,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: I am transmitting a draft bill to 
     enhance a number of veterans' programs and our ability to 
     manage them. Details regarding the context and justification 
     of the bill's 10 provisions are provided in the enclosed 
     section-by-section analysis. If enacted, this legislation 
     would:
       Sec. 101--authorize VA to provide medical care for newborn 
     children of enrolled women veterans;
       Sec. 102--authorized VA to provide outpatient dental care 
     to more former prisoners of war;
       Sec. 103--establish pay comparability for the Director of 
     the Nursing Service with other VHA executives;
       Sec. 201--prohibit provision of presidential memorial 
     certificates, burial flags, and headstones and markers on 
     behalf of individuals who have committed capital crimes;
       Sec. 202--clarify procedures relating to the prohibition 
     against allowing individuals who had committed capital crimes 
     to be interred or memorialized in national veterans' 
     cemeteries;
       Sec. 203--clarify current law regarding the date on which 
     the 120-day period for appeal of a Board of Veterans' Appeals 
     decision to the U.S. Court of Appeals for Veterans Claims 
     begins to run;
       Sec. 301--conform the VA 5-percent limitation on non-career 
     SES members to the Government-wide 10-percent limitation;
       Sec. 302--eliminate the requirement that at least two-
     thirds of VA deputy assistant secretaries must have served 
     continuously for 5 years in the Federal civil service 
     immediately prior to their appointments;
       Sec. 303--authorize the Department of Defense to purchase 
     medical items and services through VA's Revolving Supply 
     Fund; and
       Sec. 304--conform the current-law definition of minority 
     veterans to the new Race & Ethnic Standards used in Federal 
     statistical reporting and in the 2000 U.S. Census.
       I request that this bill be promptly considered and 
     enacted.
       Advise has been received from the Office of Management and 
     Budget that, from the standpoint of the Administration's 
     program, there is no objection to enactment of this draft 
     bill.
           Sincerely yours,
                                              Anthony J. Principi.
       Enclosures.

             SECTION-BY-SECTION ANALYSIS and JUSTIFICATION


   section 101--care for newborn children of enrolled women veterans

       Section 101 would amend the definition of medical services 
     that VA may provide to veterans to include care provided by a 
     contract provider to newborn children of women veterans. To 
     receive this benefit, a veteran must be enrolled in the VA 
     health care system. VA would contract for this care until the 
     mother is discharged from the hospital after delivery of the 
     child or for 14 days after the birth of the child, whichever 
     period is shorter, and only if VA contracted for delivery of 
     the child. After childbirth, some veterans may need this 
     limited benefit to give them time to apply for medical 
     assistance. Offering this care would also be consistent with 
     the normal pregnancy and delivery coverage in the community.
       The discretionary-cost estimate for enactment of this 
     proposal is as follows:

------------------------------------------------------------------------
                        Fiscal year                             Cost
------------------------------------------------------------------------
2002......................................................    $5,344,795
2003......................................................     5,451,691
2004......................................................     5,560,725
2005......................................................     5,671,939
2006......................................................     5,785,378
2007......................................................     5,901,085
2008......................................................     6,019,107
2009......................................................     6,139,489
2010......................................................     6,262,279
2011......................................................     6,387,525
                                                           -------------
      Total...............................................    55,524,013
------------------------------------------------------------------------

  Section 102--outpatient dental care for all former prisoners of war

       Section 102 would authorize VA to provide outpatient dental 
     care to former prisoners of war (POW's) regardless of the 
     length of their detention or internment. Currently, the law 
     only permits VA to provide such care to former POW's who were 
     detained or interned for 90 days or more. This provision is 
     needed to ensure that former POW's receive all needed care 
     for conditions that may be attributable to the privations of 
     their service.
       There would be insignificant costs resulting from enactment 
     of this proposal.


      section 103--pay comparability for director, nursing service

       This section of the draft bill would amend section 
     7306(a)(5) to exempt the position of the Director of Nursing 
     Service, VA's chief nurse executive, from the nurse-pay 
     restrictions in section 7451 and require that the Director of 
     Nursing Service be paid at a rate comparable to that of other 
     non-physician (SES) VA executives. The current pay-rate 
     disparity is unjustified.
       There are no significant costs associated with this 
     proposal.


        section 201--limitation on provision of certain benefits

       Section 201 of the draft bill would amend sections 112, 
     2301, and 2306 of title 38, United States Code, to prohibit 
     VA, in the case of a death occurring after the date of 
     enactment, from furnishing a presidential memorial 
     certificate, a burial flag, a headstone or marker, or a 
     memorial headstone or marker on behalf of a person barred 
     from burial or memorialization in a national cemetery by 
     operation of 38 U.S.C. Sec. 2411. Section 112 currently

[[Page 384]]

     authorizes the Secretary of Veterans Affairs to conduct a 
     program for honoring the memory of deceased veterans by 
     preparing and sending to eligible recipients a certificate 
     bearing the signature of the President and expressing the 
     country's grateful recognition of the veteran's service in 
     the Armed Forces. Section 2301(a) currently requires the 
     Secretary to furnish a burial flag to drape the casket of any 
     deceased veteran who: (1) was a veteran of any war or of 
     service after January 31, 1955; (2) served at least one 
     enlistment; (3) was released from active service for a 
     disability incurred or aggravated in the line of duty; or, 
     (4) was entitled to receive retirement pay at age 60 based on 
     service in the Reserves or National Guard. Section 2306(a) 
     currently requires the Secretary to furnish on request a 
     headstone or marker for the unmarked grave of: (1) any 
     individual buried in a national cemetery; (2) many 
     individuals eligible for burial in a national cemetery but 
     not buried there; (3) Civil War soldiers; (4) spouses, 
     surviving spouses, and children of certain eligible 
     individuals, when buried in a state veterans' cemetery; and 
     (5) certain reservists and retired reservists with 20 years 
     of service. Section 2306(b) currently requires the Secretary 
     to furnish on request a memorial headstone or marker for the 
     purpose of commemorating a veteran or the spouse or surviving 
     spouse of a veteran, whose remains are unavailable.
       Section 2411 of title 38, United States Code, prohibits 
     burial in a national cemetery of persons who: (1) have been 
     convicted of a Federal capital crime and sentenced to death 
     or life imprisonment; (2) have been convicted of a State 
     capital crime and sentenced to death or life imprisonment 
     without parole; or, (3) are found administratively by clear 
     and convincing evidence to have committed such a crime but 
     not been convicted due to death or flight to avoid 
     prosecution. This provision would amend sections 112, 2301, 
     and 2306 to prohibit the furnishing of presidential memorial 
     certificates, burial flags, headstones or markers, and 
     memorial headstones or markers by VA on behalf of these three 
     classes of persons. This amendment is a limited and logical 
     extension of the section 2411 prohibition that would avoid 
     placing the United States in the position of honoring at the 
     time of death a person who has committed a heinous crime.
       There is no cost associated with this proposal.


Section 202--Clarification of Procedures Regarding Disqualification of 
     Certain Individuals for Memorialization in Veterans Cemeteries

       Section 202 of the draft bill would amend Section 2411 of 
     title 38, United States Code, to correct a technical defect 
     in the prohibition against the interment or memorialization 
     in a cemetery operated by the National Cemetery 
     Administration (or in Arlington National Cemetery) of certain 
     persons who have committed Federal or state capital crimes. 
     Under Section 2411(a), the Secretary of Veterans Affairs (or 
     the Secretary of the Army, with respect to Arlington National 
     Cemetery) may not inter the remains of or memorialize in such 
     a cemetery: (1) a person who has been convicted of a Federal 
     capital crime for which the person was sentenced to death or 
     life imprisonment; (2) a person who has been convicted of a 
     state capital crime for which the person was sentenced to 
     death or life imprisonment without parole; or (3) a person 
     who is found administratively to have committed a Federal or 
     state capital crime, but to have avoided conviction of such 
     crime by reason of unavailability for trial due to death or 
     flight to avoid prosecution. Administrative findings 
     regarding the third category of persons would be made by the 
     Secretary of Veterans Affairs in the case of a VA national 
     cemetery and the Secretary of the Army in the case of 
     Arlington National Cemetery.
       Section 2411(a)(2) provides that the prohibitions against 
     interment and memorialization do not apply unless the 
     appropriate Secretary has received from the Attorney General, 
     in the case of a Federal capital crime, or an appropriate 
     state official, in the case of a state capital crime, written 
     notice of a disqualifying conviction or administrative 
     finding before approval of an application for interment or 
     memorialization. The notification requirement appears to have 
     been included in error with respect to a case involving an 
     administrative finding that an individual had committed a 
     capital offense but was not convicted by reason of 
     unavailability for trial due to death or flight to avoid 
     prosecution. Since the Secretary of Veterans Affairs or the 
     Secretary of the Army would have made the finding in the 
     first place, there would appear to be no reason to require 
     the Attorney General or an appropriate state official provide 
     written notice to the Secretary concerned regarding that 
     Secretary's own finding. Nonetheless, persons requesting 
     interment services may argue that the interment prohibition 
     is inoperative in the absence of such notice. Accordingly, we 
     believe the reference to notification of administrative 
     findings should be removed.
       There is no cost associated with this proposal.


 section 203--clarification of the period for appealing rulings of the 
                       board of veterans' appeals

       Section 203 of the draft bill would clarify an ambiguity 
     created by past legislation. Section 7266(a)(1) of title 38, 
     United States Code, provides that, to obtain review by the 
     United States Court of Appeals for Veterans Claims (Court) of 
     a final Board of Veterans' Appeals (Board) decision, a person 
     adversely affected by the decision must file a notice of 
     appeal with the Court within 120 days after the date on which 
     notice of the decision is mailed pursuant to 38 U.S.C. 
     Sec. 7104(e). Before its amendment by the Veterans' Benefits 
     Improvements Act of 1996, Pub. L. No. 104-275, 110 Stat. 
     3322, Section 7104(e) required the Board to promptly mail a 
     copy of its decision to the claimant and the claimant's 
     authorized representative, if any. The Court had construed 
     those provisions as requiring, if a claimant is represented, 
     the accomplishment of both mailings to begin the 120-day 
     appeal period. See Paniag v. Brown, 10 Vet. App. 265, 267 
     (1997).
       As amended by Section 509 of Pub. L. No. 104-275, 110 Stat. 
     at 3344, Section 7104(e) now requires the Board to promptly 
     mail a copy of its written decision to the claimant and, if 
     the claimant has an authorized representative, to mail a copy 
     of its written decision to the authorized representative or 
     send a copy of its written decision to the authorized 
     representative by any means reasonably likely to provide the 
     representative with the decision as timely as if it were 
     mailed first class. Thus, under Section 7104(e) as amended, 
     the Board must still notify a claimant's representative, if 
     any, but such notice may be made by mailing or sending the 
     representative a copy of the decision. Although Section 
     7104(e) was so amended, no corresponding change was made to 
     Section 7266(a)(1)'s reference to ``mail[ing] pursuant to 
     Section 7104(e).'' See Dippel v. West, 12 Vet. App. 466, 470 
     (1999) (noting that Congress did not change Section 7266(a) 
     and that Section 7104(e)'s plain meaning would suggest that 
     Section 7266(a)(1)'s reference to ``mail pursuant to Section 
     7104(e)'' does not cover a decision sent pursuant to Section 
     7104(e)(2)(B)).
       The amendment to former Section 7104(e) without a 
     corresponding change to Section 7266(a)(1) has created an 
     ambiguity. It is not clear when the 120-day appeal period 
     prescribed by Section 7266(a)(1) begins if a claimant is 
     represented and the Board mails copies of its decision to the 
     claimant and the claimant's representative, but mails them on 
     different days. Section 7266(a)(1) does not specify whether 
     the appeal period in that situation begins on the date of 
     mailing to the claimant, on the date of mailing to the 
     representative, on the date of the earlier of both mailings, 
     or on the date of the later of both mailings.
       The draft bill would clarify that matter. Section 241 of 
     the bill would amend Section 7266(a)(1) to require, for 
     initiation of Court review of a final Board decision, that a 
     notice of appeal be filed within 120 days after a copy of the 
     decision, pursuant to Section 7104(e), is mailed or sent to 
     the claimant's representative or, if the claimant is not 
     represented, mailed to the claimant. Thus, the 120-day appeal 
     period would begin when the Board mails or sends a copy of 
     its decision to the claimant's authorized representative or, 
     if the claimant is not represented, when the Board mails a 
     copy of its decision to the claimant. We have chosen the date 
     of mailing or sending to the representative, if any, because 
     generally a representative stands in the claimant's place for 
     the purpose of receiving notice of the decision. If the 
     appeal period were to begin on the date of mailing to the 
     claimant, a delay in providing notice of the decision to the 
     representative could compromise the representative's ability 
     to timely advise the claimant. Beginning the appeal period on 
     the date of mailing or sending notice to the representative 
     would maximize the time available to the representative to 
     advise the claimant as to the best course of action.
       Section 2(b) of the draft bill would make the amendment to 
     Section 7266(a)(1) apply to any Board decision made on or 
     after the date of enactment of this Act.
       No costs or savings would result from enactment of this 
     provision.


   Section 301--Repeal of Cap on Number of Non-Career Members of the 
                 Senior Executive Service Serving in VA

       Section 301(a) of the bill would repeal the current 
     statutory limitation applicable to VA on the number of non-
     career members of the SES that may serve in the Department. 
     Currently, that number may not exceed five-percent (5%) of 
     the average number of senior executives employed in Senior 
     Executive Service positions in the Department during the 
     preceding fiscal year. This provision would not affect the 
     Government-wide ten-percent (10%) limitation that generally 
     applies to other agencies and departments. Section 301(b) 
     would also make conforming amendments to 38 U.S.C. 709.
       The Department would greatly benefit from being able to 
     avail itself further of the experience and expertise of 
     executive-level professionals from the private sector, as we 
     restructure fundamental Departmental processes to improve the 
     timely delivery of both health care services and benefits to 
     veterans. The proposed flexibility in staffing would better 
     position VA to increase its knowledge of successful private 
     sector business practices, identify those that have 
     application to

[[Page 385]]

     VA, and successfully implement them. This, in turn, would 
     enable VA to better meet the expectations of the 
     beneficiaries of VA's programs. The proposal is consistent 
     with the Government's policy of partnering with the private 
     sector to improve Government performance.
       VA would remain subject to the ten-percent (10%) 
     Government-wide limitation on non-career SES positions, which 
     OPM administers. The current five-percent (5%) cap on the 
     number of non-career members of the Senior Executive Service 
     is applicable only to VA. While mindful and appreciative of 
     Congress' intention to limit policitization of the Department 
     when it established VA as an Executive Department in 1988, we 
     nonetheless believe that the number of non-career SES members 
     appointed to VA positions should be based on the actual 
     current leadership needs of the Department, as determined by 
     the Administration, subject to the ten-percent (10%) 
     Government-wide limitation. There would be no costs 
     associated with enactment of this provision.


  Section 302--Repeal of Preceding-Service Requirement for VA Deputy 
                         Assistant Secretaries

       Section 302 of the draft bill would repeal section 
     308(d)(2), which now requires at least two-thirds of VA's 
     Deputy Assistant Secretaries (DAS's) to have served 
     continuously for five years in the Federal Civil Service in 
     the Executive Branch immediately prior to their appointments. 
     This requirement was established in 1988 to maintain the 
     institutional memory and the Department's tradition of career 
     service. However, this limitation has, in practice, proven to 
     be overly prescriptive. It prevents utilization of highly 
     competent people not meeting the criteria. Because the 
     stringent continuous five-year service requirement applies to 
     all but one-third of the DAS positions, it has required VA to 
     utilize these limited ``non-career'' DAS slots for ``career'' 
     appointees who are not political appointees but who simply 
     fail to meet the service requirement. This includes career 
     employees who have moved from the private sector, within the 
     last five years. This limits the pool of candidates from 
     which the Secretary may select his leadership team. We 
     recommend eliminating the existing service requirement. VA 
     could establish its own standards for these high-level 
     positions, addressing Congress' original concerns of 
     institutional memory and the tradition of career service 
     while still providing needed flexibility for selecting the 
     best-qualified persons.
       No costs are associated with enactment of this provision.


             Section 303--Revolving Supply Fund Amendments

       Section 303 would expand the services of the Revolving 
     Supply Fund (38 U.S.C. Sec. 8121), to permit the Department 
     of Defense (DOD) to enter into interagency agreements with 
     the Revolving Supply Fund (Supply Fund) for the procurement 
     of certain items and services under the purchase authority of 
     the Supply Fund. Purchases would be limited to medical items 
     and services, e.g., pharmaceuticals, medical/surgical 
     supplies, equipment, and systems and consulting services. 
     Currently, only offices funded by VA appropriations may 
     purchase under that authority. DOD and other Federal agencies 
     enter into interagency agreements with the Supply Fund under 
     the Economy Act (31 U.S.C. Sec. 1535).
       Congress traditionally has favored consolidated purchases 
     because the increased buying power provides additional 
     procurement leverage and resulting cost savings. Most 
     recently, Congress, in Sec. 210 of the Veterans Millennium 
     Health Care and Benefits Act (P.L. 106-117), required VA and 
     DOD to jointly report on the cooperation between the two 
     Departments in procuring pharmaceuticals, medical supplies 
     and equipment. It is clear that Congress holds VA and DOD 
     accountable for achieving efficiencies through the 
     consolidation of contracting and logistics responsibilities.
       The legislation, if enacted, would provide additional 
     incentives for DOD to purchase medical items and services 
     directly or through joint procurements from the Supply Fund, 
     e.g., the ordering agencies' obligations remain payable in 
     full from the appropriation initially charged irrespective of 
     when performance occurs; and VA Supply Fund program managers 
     are better able to negotiate contracts for bona fide high 
     priority items because frantic year-end spending is 
     eliminated.
       The enactment of this proposal would not result in any cost 
     to VA. The Supply Fund operates entirely upon fees assessed 
     for services rendered.


  Section 304--Redefinition of ``minority group member'' in 38 U.S.C. 
                              Sec. 544(d)

       Section 306 is a technical amendment to 38 U.S.C. 
     Sec. 544(d) to change the definition of minority veterans to 
     make it conform to the new Race & Ethic Standards used in 
     Federal statistical reporting and in the 2000 U.S. Census. 
     The amendment would not change eligibility or entitlement to 
     existing or future benefits. No costs would result from 
     enactment of this proposal.

                          ____________________