[Congressional Record (Bound Edition), Volume 148 (2002), Part 17]
[Senate]
[Pages 22908-22918]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     VETERANS BENEFITS ACT OF 2002

  Mr. REID. Mr. President, I ask the Chair lay before the Senate a 
message from the House of Representatives on the bill (S. 2237) to 
amend title 38, United States Code, to modify and improve authorities 
relating to compensation and pension benefits, education benefits, 
housing benefits, and other benefits for veterans, to improve the 
administration of benefits for veterans, and for other purposes.
  The PRESIDING OFFICER laid before the Senate the following message 
from the House of Representatives.

       Resolved, That the bill from the Senate (S. 2237) entitled 
     ``An Act to amend title 38, United States Code, to modify and 
     improve authorities relating to compensation and pension 
     benefits, education benefits, housing benefits, and other 
     benefits for veterans, to improve the administration of 
     benefits for veterans, and for other purposes'', do pass with 
     the following amendments:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Veterans 
     Benefits Act of 2002''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

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

            TITLE I--COMPENSATION AND BENEFITS IMPROVEMENTS

Sec. 101. Retention of CHAMPVA for surviving spouses remarrying after 
              age 55.
Sec. 102. Clarification of entitlement to special monthly compensation 
              for women veterans who have service-connected loss of 
              breast tissue.
Sec. 103. Specification of hearing loss required for compensation for 
              hearing loss in paired organs.
Sec. 104. Assessment of acoustic trauma associated with military 
              service from World War II to present.

                       TITLE II--MEMORIAL AFFAIRS

Sec. 201. Prohibition on certain additional benefits for persons 
              committing capital crimes.

[[Page 22909]]

Sec. 202. Procedures for disqualification of persons committing capital 
              crimes for interment or memorialization in national 
              cemeteries.
Sec. 203. Application of Department of Veterans Affairs benefit for 
              Government markers for marked graves of veterans at 
              private cemeteries to veterans dying on or after 
              September 11, 2001.
Sec. 204. Authorization of placement of a memorial in Arlington 
              National Cemetery honoring World War II veterans who 
              fought in the Battle of the Bulge.

                        TITLE III--OTHER MATTERS

Sec. 301. Increase in aggregate annual amount available for State 
              approving agencies for administrative expenses for fiscal 
              years 2003 through 2007.
Sec. 302. Authority for Veterans' Mortgage Life Insurance to be carried 
              beyond age 70.
Sec. 303. Authority to guarantee hybrid adjustable rate mortgages.
Sec. 304. Increase in amount payable as Medal of Honor special pension.
Sec. 305. Extension of protections under the Soldiers' and Sailors' 
              Civil Relief Act of 1940 to National Guard members called 
              to active duty under title 32, United States Code.
Sec. 306. Extension of income verification authority.
Sec. 307. Fee for loan assumption.
Sec. 308. Technical and clarifying amendments.
Sec. 309. Codification of cost-of-living adjustment provided in Public 
              Law 107-247.

                       TITLE IV--JUDICIAL MATTERS

Sec. 401. Standard for reversal by Court of Appeals for Veterans Claims 
              of erroneous finding of fact by Board of Veterans' 
              Appeals.
Sec. 402. Review by Court of Appeals for the Federal Circuit of 
              decisions of law of Court of Appeals for Veterans Claims.
Sec. 403. Authority of Court of Appeals for Veterans Claims to award 
              fees under Equal Access to Justice Act for non-attorney 
              practitioners.

     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--COMPENSATION AND BENEFITS IMPROVEMENTS

     SEC. 101. RETENTION OF CHAMPVA FOR SURVIVING SPOUSES 
                   REMARRYING AFTER AGE 55.

       (a) Exception to Termination of Benefits Upon Remarriage.--
     Paragraph (2) of section 103(d) is amended--
       (1) by inserting ``(A) after ``(2)''; and
       (2) by adding at the end the following:
       ``(B) The remarriage after age 55 of the surviving spouse 
     of a veteran shall not bar the furnishing of benefits under 
     section 1781 of this title to such person as the surviving 
     spouse of the veteran.''.
       (b) Application for Benefits.--In the case of an individual 
     who but for having remarried would be eligible for medical 
     care under section 1781 of title 38, United States Code, and 
     whose remarriage was before the date of the enactment of this 
     Act and after the individual had attained age 55, the 
     individual shall be eligible for such medical care by reason 
     of the amendments made by subsection (a) only if an 
     application for such medical care is received by the 
     Secretary of Veterans Affairs during the one-year period 
     ending on the effective date specified in subsection (c).
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date that is 60 days after the date 
     of the enactment of this Act.

     SEC. 102. CLARIFICATION OF ENTITLEMENT TO SPECIAL MONTHLY 
                   COMPENSATION FOR WOMEN VETERANS WHO HAVE 
                   SERVICE-CONNECTED LOSS OF BREAST TISSUE.

       Section 1114(k) is amended by striking ``one or both 
     breasts (including loss by mastectomy)'' and inserting ``25 
     percent or more of tissue from a single breast or both 
     breasts in combination (including loss by mastectomy or 
     partial mastectomy) or has received radiation treatment of 
     breast tissue''.

     SEC. 103. SPECIFICATION OF HEARING LOSS REQUIRED FOR 
                   COMPENSATION FOR HEARING LOSS IN PAIRED ORGANS.

       Section 1160(a)(3) is amended--
       (1) by striking ``total deafness'' the first place it 
     appears and inserting ``deafness compensable to a degree of 
     10 percent or more''; and
       (2) by striking ``total deafness'' the second place it 
     appears and inserting ``deafness''.

     SEC. 104. ASSESSMENT OF ACOUSTIC TRAUMA ASSOCIATED WITH 
                   MILITARY SERVICE FROM WORLD WAR II TO PRESENT.

       (a) Assessment by National Academy of Sciences.--The 
     Secretary of Veterans Affairs shall seek to enter into an 
     agreement with the National Academy of Sciences for the 
     Academy to perform the activities specified in this section. 
     The Secretary shall seek to enter into the agreement not 
     later than 60 days after the date of the enactment of this 
     Act.
       (b) Duties Under Agreement.--Under the agreement under 
     subsection (a), the National Academy of Sciences shall do the 
     following:
       (1) Review and assess available data on hearing loss that 
     could reasonably be expected to have been incurred by members 
     of the Armed Forces during the period from the beginning of 
     World War II to the date of the enactment of this Act.
       (2) Identify the different sources of acoustic trauma that 
     members of the Armed Forces could reasonably be expected to 
     have been exposed to during the period from the beginning of 
     World War II to the date of the enactment of this Act
       (3) Determine how much exposure to each source of acoustic 
     trauma identified under paragraph (2) is required to cause or 
     contribute to hearing loss, hearing threshold shift, or 
     tinnitus, as the case may be, and at what noise level.
       (4) Determine whether or not such hearing loss, hearing 
     threshold shift, or tinnitus, as the case may be, is--
       (A) immediate or delayed onset;
       (B) cumulative;
       (C) progressive; or
       (D) any combination of subparagraph (A), (B), and (C).
       (5) Identify age, occupational history, and other factors 
     which contribute to an individual's noise-induced hearing 
     loss.
       (6) Identify--
       (A) the period of time at which audiometric measures used 
     by the Armed Forces became adequate to evaluate individual 
     hearing threshold shift; and
       (B) the period of time at which hearing conservation 
     measures to prevent individual hearing threshold shift were 
     available to members of the Armed Forces, shown separately 
     for each of the Army, Navy, Air Force, Marine Corps, and 
     Coast Guard, and, for each such service, shown separately for 
     members exposed to different sources of acoustic trauma 
     identified under paragraph (2).
       (c) Report.--Not later than 180 days after the date of the 
     entry into the agreement referred to in subsection (a), the 
     National Academy of Sciences shall submit to the Secretary a 
     report on the activities of the National Academy of Sciences 
     under the agreement, including the results of the activities 
     required by subsection (b).
       (d) Report on Administration of Benefits for Hearing Loss 
     and Tinnitus.--(1) Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Veterans Affairs 
     shall submit to the Committees on Veterans' Affairs of the 
     Senate and the House of Representatives a report on the 
     claims submitted to the Secretary for disability compensation 
     or health care for hearing loss or tinnitus.
       (2) The report under paragraph (1) shall include the 
     following:
       (A) The number of decisions issued by the Secretary in each 
     of fiscal years 2000, 2001, and 2002 on claims for disability 
     compensation for hearing loss, tinnitus, or both.
       (B) Of the decisions referred to in subparagraph (A)--
       (i) the number in which compensation was awarded, and the 
     number in which compensation was denied, set forth by fiscal 
     year; and
       (ii) the total amount of disability compensation paid on 
     such claims during each such fiscal year.
       (C) The total cost to the Department of Veterans Affairs of 
     adjudicating the claims referred to in subparagraph (A), set 
     forth in terms of full-time employee equivalents (FTEEs).
       (D) The total number of veterans who sought treatment in 
     Department of Veterans Affairs health care facilities during 
     fiscal years specified in subparagraph (A) for hearing-
     related disorders, set forth by the number of veterans per 
     year.
       (E) The health care furnished to veterans referred to in 
     subparagraph (D) for hearing-related disorders, including the 
     number of veterans furnished hearing aids and the cost of 
     furnishing such hearing aids.

                       TITLE II--MEMORIAL AFFAIRS

     SEC. 201. PROHIBITION ON CERTAIN ADDITIONAL BENEFITS FOR 
                   PERSONS COMMITTING CAPITAL CRIMES.

       (a) Presidential Memorial Certificate.--Section 112 is 
     amended by adding at the end the following new subsection:
       ``(c) A certificate may not be furnished under the program 
     under subsection (a) on behalf of a deceased person described 
     in section 2411(b) of this title.''.
       (b) Flag to Drape Casket.--Section 2301 is amended--
       (1) by redesignating subsection (g) as subsection (h); and
       (2) by inserting after subsection (f) the following new 
     subsection (g):
       ``(g) A flag may not be furnished under this section in the 
     case of a person described in section 2411(b) of this 
     title.''.
       (c) Headstone or Marker for Grave.--Section 2306 is amended 
     by adding at the end the following new subsection:
       ``(g)(1) A headstone or marker may not be furnished under 
     subsection (a) for the unmarked grave of a person described 
     in section 2411(b) of this title.
       ``(2) A memorial headstone or marker may not be furnished 
     under subsection (b) for the purpose of commemorating a 
     person described in section 2411(b) of this title.
       ``(3) A marker may not be furnished under subsection (d) 
     for the grave of a person described in section 2411(b) of 
     this title.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to deaths occurring on or after the 
     date of the enactment of this Act.

[[Page 22910]]



     SEC. 202. PROCEDURES FOR DISQUALIFICATION OF PERSONS 
                   COMMITTING CAPITAL CRIMES FOR INTERMENT OR 
                   MEMORIALIZATION IN NATIONAL 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), as 
     the case may be,''.

     SEC. 203. APPLICATION OF DEPARTMENT OF VETERANS AFFAIRS 
                   BENEFIT FOR GOVERNMENT MARKERS FOR MARKED 
                   GRAVES OF VETERANS AT PRIVATE CEMETERIES TO 
                   VETERANS DYING ON OR AFTER SEPTEMBER 11, 2001.

       (a) In General.--Subsection (d) of section 502 of the 
     Veterans Education and Benefits Expansion Act of 2001 (Public 
     Law 107-103; 115 Stat. 995; 38 U.S.C. 2306 note) is amended 
     by striking ``the date of the enactment of this Act'' and 
     inserting ``September 11, 2001''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as if included in the enactment of such 
     section 502.

     SEC. 204. AUTHORIZATION OF PLACEMENT OF A MEMORIAL IN 
                   ARLINGTON NATIONAL CEMETERY HONORING WORLD WAR 
                   II VETERANS WHO FOUGHT IN THE BATTLE OF THE 
                   BULGE.

       The Secretary of the Army is authorized to place in 
     Arlington National Cemetery a memorial marker honoring 
     veterans who fought in the battle in the European theater of 
     operations during World War II known as the Battle of the 
     Bulge.

                        TITLE III--OTHER MATTERS

     SEC. 301. INCREASE IN AGGREGATE ANNUAL AMOUNT AVAILABLE FOR 
                   STATE APPROVING AGENCIES FOR ADMINISTRATIVE 
                   EXPENSES FOR FISCAL YEARS 2003 THROUGH 2007.

       The first sentence of section 3674(a)(4) is amended by 
     inserting before the period at the end the following: ``, for 
     fiscal year 2003, $14,000,000, for fiscal year 2004, 
     $18,000,000, for fiscal year 2005, $18,000,000, for fiscal 
     year 2006, $19,000,000, and for fiscal year 2007, 
     $19,000,000''.

     SEC. 302. AUTHORITY FOR VETERANS' MORTGAGE LIFE INSURANCE TO 
                   BE CARRIED BEYOND AGE 70.

  Section 2106 is amended--
       (1) in subsection (a), by inserting ``age 69 or younger'' 
     after ``any eligible veteran''; and
       (2) in subsection (i), by striking paragraph (2) and 
     redesignating paragraphs (3) and (4) as paragraphs (2) and 
     (3), respectively.

     SEC. 303. AUTHORITY TO GUARANTEE HYBRID ADJUSTABLE RATE 
                   MORTGAGES.

       (a) Two-Year Demonstration Project To Guarantee Certain 
     Adjustable Rate Mortgages.--Chapter 37 is amended by 
     inserting after section 3707 the following new section:

     ``Sec. 3707A. Hybrid adjustable rate mortgages

       ``(a) The Secretary shall carry out a demonstration project 
     under this section during fiscal years 2004 and 2005 for the 
     purpose of guaranteeing loans in a manner similar to the 
     manner in which the Secretary of Housing and Urban 
     Development insures adjustable rate mortgages under section 
     251 of the National Housing Act in accordance with the 
     provisions of this section with respect to hybrid adjustable 
     rate mortgages described in subsection (b).
       ``(b) Adjustable rate mortgages that are guaranteed under 
     this section shall be adjustable rate mortgages (commonly 
     referred to as `hybrid adjustable rate mortgages') having 
     interest rate adjustment provisions that--
       ``(1) specify an initial rate of interest that is fixed for 
     a period of not less than the first three years of the 
     mortgage term;
       ``(2) provide for an initial adjustment in the rate of 
     interest by the mortgagee at the end of the period described 
     in paragraph (1); and
       ``(3) comply in such initial adjustment, and any subsequent 
     adjustment, with subsection (c).
       ``(c) Interest rate adjustment provisions of a mortgage 
     guaranteed under this section shall--
       ``(1) correspond to a specified national interest rate 
     index approved by the Secretary, information on which is 
     readily accessible to mortgagors from generally available 
     published sources;
       ``(2) be made by adjusting the monthly payment on an annual 
     basis;
       ``(3) be limited, with respect to any single annual 
     interest rate adjustment, to a maximum increase or decrease 
     of 1 percentage point; and
       ``(4) be limited, over the term of the mortgage, to a 
     maximum increase of 5 percentage points above the initial 
     contract interest rate.
       ``(d) The Secretary shall promulgate underwriting standards 
     for loans guaranteed under this section, taking into 
     account--
       ``(1) the status of the interest rate index referred to in 
     subsection (c)(1) and available at the time an underwriting 
     decision is made, regardless of the actual initial rate 
     offered by the lender;
       ``(2) the maximum and likely amounts of increases in 
     mortgage payments that the loans would require;
       ``(3) the underwriting standards applicable to adjustable 
     rate mortgages insured under title II of the National Housing 
     Act; and
       ``(4) such other factors as the Secretary finds 
     appropriate.
       ``(e) The Secretary shall require that the mortgagee make 
     available to the mortgagor, at the time of loan application, 
     a written explanation of the features of the adjustable rate 
     mortgage, including a hypothetical payment schedule that 
     displays the maximum potential increases in monthly payments 
     to the mortgagor over the first five years of the mortgage 
     term.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 37 is amended by inserting after the 
     item relating to section 3707 the following new item:

``3707A. Hybrid adjustable rate mortgages.''.

     SEC. 304. INCREASE IN AMOUNT PAYABLE AS MEDAL OF HONOR 
                   SPECIAL PENSION.

       (a) Increase in Amount.--Subsection (a) of section 1562 is 
     amended by striking ``$600'' and inserting ``$1,000, as 
     adjusted from time to time under subsection (e)''.
       (b) Annual Adjustment.--That section is further amended by 
     adding at the end the following new subsection:
       ``(e) Effective as of December 1 each year, the Secretary 
     shall increase the amount of monthly special pension payable 
     under subsection (a) as of November 30 of such year by the 
     same percentage as the percentage by which benefit amounts 
     payable under title II of the Social Security Act (42 U.S.C. 
     401 et seq.) are increased effective December 1 of such year 
     as a result of a determination under section 215(i) of that 
     Act (42 U.S.C. 415(i)).''.
       (c) Payment of Lump Sum for Period Between Act of Valor and 
     Commencement of Special Pension.--That section is further 
     amended by adding after subsection (e), as added by 
     subsection (b) of this section, the following new subsection:
       ``(f)(1) The Secretary shall pay, in a lump sum, to each 
     person who is in receipt of special pension payable under 
     this section an amount equal to the total amount of special 
     pension that the person would have received during the period 
     beginning on the first day of the first month beginning after 
     the date of the act for which the person was awarded the 
     Medal of Honor and ending on the last day of the month 
     preceding the month in which the person's special pension in 
     fact commenced.
       ``(2) For each month of a period referred to in paragraph 
     (1), the amount of special pension payable to a person shall 
     be determined using the rate of special pension that was in 
     effect for such month, and shall be payable only if the 
     person would have been entitled to payment of special pension 
     for such month under laws for eligibility for special pension 
     (with the exception of the eligibility law requiring a person 
     to have been awarded a Medal of Honor) in effect at the 
     beginning of such month.''.
       (d) Effective Date.--(1) Except as provided in paragraph 
     (2), the amendments made by subsections (a) and (b) shall 
     take effect on September 1, 2003. No payment may be made 
     pursuant to subsection (f) of section 1562 of title 38, 
     United States Code, as added by subsection (c) of this 
     section, before October 1, 2003.
       (2) The Secretary of Veterans Affairs shall not make any 
     adjustment under subsection (e) of section 1562 of title 38, 
     United States Code, as added by subsection (b) of this 
     section, in 2003.

     SEC. 305. EXTENSION OF PROTECTIONS UNDER THE SOLDIERS' AND 
                   SAILORS' CIVIL RELIEF ACT OF 1940 TO NATIONAL 
                   GUARD MEMBERS CALLED TO ACTIVE DUTY UNDER TITLE 
                   32, UNITED STATES CODE.

       Section 101(1) of the Soldiers' and Sailors' Civil Relief 
     Act of 1940 (50 U.S.C. App. 511(1)) is amended--
       (1) in the first sentence--
       (A) by striking ``and all'' and inserting ``all''; and
       (B) by inserting before the period the following: ``, and 
     all members of the National Guard on service described in the 
     following sentence''; and
       (2) in the second sentence, by inserting before the period 
     the following: ``, and, in the case of a member of the 
     National Guard, shall include service under a call to active 
     service authorized by the President or the Secretary of 
     Defense for a period of more than 30 consecutive days under 
     section 502(f) of title 32, United States Code, for purposes 
     of responding to a national emergency declared by the 
     President and supported by Federal funds''.

     SEC. 306. EXTENSION OF INCOME VERIFICATION AUTHORITY.

       Section 6103(l)(7)(D) of the Internal Revenue Code of 1986 
     is amended by striking ``September 30, 2003'' in the second 
     sentence after clause (ix) and inserting ``September 30, 
     2008''.

     SEC. 307. FEE FOR LOAN ASSUMPTION.

       (a) In General.--For the period described in subsection 
     (b), the Secretary of Veterans Affairs shall apply section 
     3729(b)(2)(I) of title 38, United States Code, by 
     substituting ``1.00'' for ``0.50'' each place it appears.
       (b) Period Described.--The period referred to in subsection 
     (a) is the period that begins on the date that is 7 days 
     after the date of the enactment of this Act and ends on 
     September 30, 2003.

     SEC. 308. TECHNICAL AND CLARIFYING AMENDMENTS.

       (a) Eligibility of Certain Additional Vietnam Era Veterans 
     for Education Benefits.--Section 3011(a)(1)(C)(ii) is amended 
     by striking ``on or''.
       (b) Accelerated Payment of Assistance for Education Leading 
     to Employment in High Technology Industry.--(1) Subsection 
     (b)(1) of section 3014A is amended by striking ``employment 
     in a high technology industry'' and inserting ``employment in 
     a high technology occupation in a high technology industry''.
       (2)(A) The heading for section 3014A is amended to read as 
     follows:

[[Page 22911]]



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

       (B) The table of sections at the beginning of chapter 30 is 
     amended by striking the item relating to section 3014A and 
     inserting the following new item:

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

       (c) Source of Funds for Increased Usage of Montgomery GI 
     Bill Entitlement Under Entitlement Transfer Authority.--(1) 
     Section 3035(b) is amended--
       (A) in paragraph (1), by striking ``paragraphs (2) and (3) 
     of this subsection,'' and inserting ``paragraphs (2), (3), 
     and (4),''; and
       (B) by adding at the end the following new paragraph:
       ``(4) Payments attributable to the increased usage of 
     benefits as a result of transfers of entitlement to basic 
     educational assistance under section 3020 of this title shall 
     be made from the Department of Defense Education Benefits 
     Fund established under section 2006 of title 10 or from 
     appropriations made to the Department of Transportation, as 
     appropriate.''.
       (2) The amendments made by this subsection shall take 
     effect as if included in the enactment of the National 
     Defense Authorization Act for Fiscal Year 2002 (Public Law 
     107-107), to which such amendments relate.
       (d) Licensing or Certification Tests.--Section 
     3689(c)(1)(B) is amended by striking ``the test'' and 
     inserting ``such test, or a test to certify or license in a 
     similar or related occupation,''.
       (e) Period of Eligibility for Survivors' and Dependents' 
     Assistance Education Benefits.--(1) Section 3512(a) is 
     amended--
       (A) in paragraph (3)--
       (i) by striking ``paragraph (4)'' in the matter preceding 
     subparagraph (A) and inserting ``paragraph (4) or (5)''; and
       (ii) by striking ``subsection (d)'' in subparagraph (C)(i) 
     and inserting ``subsection (d), or any date between the two 
     dates described in subsection (d)'';
       (B) by redesignating paragraphs (4), (5), (6), and (7) as 
     paragraphs (5), (6), (7), and (8), respectively;
       (C) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) if the person otherwise eligible under paragraph (3) 
     fails to elect a beginning date of entitlement in accordance 
     with that paragraph, the beginning date of the person's 
     entitlement shall be the date of the Secretary's decision 
     that the parent has a service-connected total disability 
     permanent in nature, or that the parent's death was service-
     connected, whichever is applicable;''; and
       (D) in paragraph (6), as so redesignated, by striking 
     ``paragraph (4)'' and inserting ``paragraph (5)''.
       (2) The amendments made by this subsection shall take 
     effect November 1, 2000.
       (f) Loan Fees.--(1) Section 3703(e)(2)(A) is amended by 
     striking ``3729(b)'' and inserting ``3729(b)(2)(I)''.
       (2) The amendment made by paragraph (1) shall take effect 
     as if included in the enactment of section 402 of the 
     Veterans Benefits and Health Care Improvement Act of 2000 
     (Public Law 106-419; 114 Stat. 1861).
       (g) Additional Miscellaneous Technical Amendments to Title 
     38, United States Code.--(1)(A) The tables of chapters 
     preceding part I and at the beginning of part IV are each 
     amended by striking ``5101'' in the item relating to chapter 
     51 and inserting ``5100''.
       (B) The table of parts preceding part I is amended by 
     striking ``5101'' in the item relating to part IV and 
     inserting ``5100''.
       (2) Section 107(d)(2) is amended by striking ``the date of 
     the enactment of this subsection'' and inserting ``November 
     1, 2000,''.
       (3) Section 1701(10)(A) is amended by striking ``the date 
     of the enactment of the Veterans' Millennium Health Care and 
     Benefits Act'' and inserting ``November 30, 1999,''.
       (4) Section 1705(c)(1) is amended by striking ``Effective 
     on October 1, 1998, the Secretary'' and inserting ``The 
     Secretary''.
       (5) Section 1707(a) is amended by inserting ``(42 U.S.C. 
     14401 et seq.)'' before the period at the end.
       (6) Section 1710(e)(1)(D) is amended by striking ``the date 
     of the enactment of this subparagraph'' and inserting 
     ``November 11, 1998''.
       (7) Section 1729B(b) is amended by striking ``the date of 
     the enactment of this section'' and inserting ``November 30, 
     1999,''.
       (8) Section 1781(d) is amended--
       (A) in paragraph (1)(B)(i), by striking ``as of the date'' 
     and all that follows through ``of 2001'' and inserting ``as 
     of June 5, 2001''; and
       (B) in paragraph (4), by striking ``paragraph'' and 
     inserting ``subsection''.
       (9) Section 3018C(e)(2)(B) is amended by striking the comma 
     after ``April''.
       (10) Section 3031(a)(3) is amended by striking ``the date 
     of the enactment of this paragraph'' and inserting ``December 
     27, 2001''.
       (11) Section 3485(a)(4) is amended in subparagraphs (A), 
     (C), and (F), by striking ``the five-year period beginning on 
     the date of the enactment of the Veterans Education and 
     Benefits Expansion Act of 2001'' and inserting ``the period 
     preceding December 27, 2006''.
       (12) Section 3734(b)(2) is amended--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraphs (C), (D), (E), and (F) 
     as subparagraphs (B) (C), (D), and (E), respectively.
       (13) Section 7315(a) is amended by inserting ``Veterans 
     Health'' in the first sentence after ``in the''.
       (h) Public Law 107-103.--Effective as of December 27, 2001, 
     and as if included therein as originally enacted, section 
     103(c) of the Veterans Education and Benefits Expansion Act 
     of 2001 (Public Law 107-103; 115 Stat. 979) is amended by 
     inserting closing quotation marks at the end of the text 
     inserted by the amendment made by paragraph (2).
       (i) Public Law 102-86.--Section 403(e) of the Veterans' 
     Benefits Programs Improvement Act of 1991 (Public Law 102-86; 
     105 Stat. 424) is amended by striking ``section 321'' and all 
     that follows through ``and 484)'' and inserting ``subchapter 
     II of chapter 5 of title 40, United States Code, sections 541 
     through 555 and 1302 of title 40, United States Code''.

     SEC. 309. CODIFICATION OF COST-OF-LIVING ADJUSTMENT PROVIDED 
                   IN PUBLIC LAW 107-247.

       (a) Veterans' Disability Compensation.--Section 1114 is 
     amended--
       (1) by striking ``$103'' in subsection (a) and inserting 
     ``$104'';
       (2) by striking ``$199'' in subsection (b) and inserting 
     ``$201'';
       (3) by striking ``$306'' in subsection (c) and inserting 
     ``$310'';
       (4) by striking ``$439'' in subsection (d) and inserting 
     ``$445'';
       (5) by striking ``$625'' in subsection (e) and inserting 
     ``$633'';
       (6) by striking ``$790'' in subsection (f) and inserting 
     ``$801'';
       (7) by striking ``$995'' in subsection (g) and inserting 
     ``$1,008'';
       (8) by striking ``$1,155'' in subsection (h) and inserting 
     ``$1,171'';
       (9) by striking ``$1,299'' in subsection (i) and inserting 
     ``$1,317'';
       (10) by striking ``$2,163'' in subsection (j) and inserting 
     ``$2,193'';
       (11) in subsection (k)--
       (A) by striking ``$80'' both places it appears and 
     inserting ``$81''; and
       (B) by striking ``$2,691'' and ``$3,775'' and inserting 
     ``$2,728'' and ``$3,827'', respectively;
       (12) by striking ``$2,691'' in subsection (l) and inserting 
     ``$2,728'';
       (13) by striking ``$2,969'' in subsection (m) and inserting 
     ``$3,010'';
       (14) by striking ``$3,378'' in subsection (n) and inserting 
     ``$3,425'';
       (15) by striking ``$3,775'' each place it appears in 
     subsections (o) and (p) and inserting ``$3,827'';
       (16) by striking ``$1,621'' and ``$2,413'' in subsection 
     (r) and inserting ``$1,643'' and ``$2,446'', respectively; 
     and
       (17) by striking ``$2,422'' in subsection (s) and inserting 
     ``$2,455''.
       (b) Additional Compensation for Dependents.--Section 
     1115(1) is amended--
       (1) by striking ``$124'' in subparagraph (A) and inserting 
     ``$125'';
       (2) by striking ``$213'' in subparagraph (B) and inserting 
     ``$215'';
       (3) by striking ``$84'' in subparagraph (C) and inserting 
     ``$85'';
       (4) by striking ``$100'' in subparagraph (D) and inserting 
     ``$101'';
       (5) by striking ``$234'' in subparagraph (E) and inserting 
     ``$237''; and
       (6) by striking ``$196'' in subparagraph (F) and inserting 
     ``$198''.
       (c) Clothing Allowance for Certain Disabled Veterans.--
     Section 1162 is amended by striking ``$580'' and inserting 
     ``$588''.
       (d) Dependency and Indemnity Compensation for Surviving 
     Spouses.--(1) Section 1311(a) is amended--
       (A) by striking ``$935'' in paragraph (1) and inserting 
     ``$948''; and
       (B) by striking ``$202'' in paragraph (2) and inserting 
     ``$204''.
       (2) The table in section 1311(a)(3) is amended to read as 
     follows:

 
                                  Monthly                       Monthly
        ``Pay    grade             rate       Pay    grade       rate
 
    E-1.......................        $948    W-4...........      $1,134
    E-2.......................         948    O-1...........       1,001
    E-3.......................         948    O-2...........       1,035
    E-4.......................         948    O-3...........       1,107
    E-5.......................         948    O-4...........       1,171
    E-6.......................         948    O-5...........       1,289
    E-7.......................         980    O-6...........       1,453
    E-8.......................       1,035    O-7...........       1,570
    E-9.......................    \1\1,080    O-8...........       1,722
    W-1.......................       1,001    O-9...........       1,843
    W-2.......................       1,042    O-10..........    \2\2,021
    W-3.......................       1,072
 
``\1\If the veteran served as sergeant major of the Army, senior
  enlisted advisor of the Navy, chief master sergeant of the Air Force,
  sergeant major of the Marine Corps, or master chief petty officer of
  the Coast Guard, at the applicable time designated by section 1302 of
  this title, the surviving spouse's rate shall be $1,165.
``\2\If the veteran served as Chairman or Vice-Chairman of the Joint
  Chiefs of Staff, Chief of Staff of the Army, Chief of Naval
  Operations, Chief of Staff of the Air Force, Commandant of the Marine
  Corps, or Commandant of the Coast Guard, at the applicable time
  designated by section 1302 of this title, the surviving spouse's rate
  shall be $2,168.''.

       (3) Section 1311(b) is amended by striking ``$234'' and 
     inserting ``$237''.
       (4) Section 1311(c) is amended by striking ``$234'' and 
     inserting ``$237''.
       (5) Section 1311(d) is amended by striking ``$112'' and 
     inserting ``$113''.
       (e) Dependency and Indemnity Compensation for Children.--
     (1) Section 1313(a) is amended--
       (A) by striking ``$397'' in paragraph (1) and inserting 
     ``$402'';

[[Page 22912]]

       (B) by striking ``$571'' in paragraph (2) and inserting 
     ``$578'';
       (C) by striking ``$742'' in paragraph (3) and inserting 
     ``$752''; and
       (D) by striking ``$742'' and ``$143'' in paragraph (4) and 
     inserting ``$752'' and ``$145'', respectively.
       (2) Section 1314 is amended--
       (A) by striking ``$234'' in subsection (a) and inserting 
     ``$237'';
       (B) by striking ``$397'' in subsection (b) and inserting 
     ``$402''; and
       (C) by striking ``$199'' in subsection (c) and inserting 
     ``$201''.

                       TITLE IV--JUDICIAL MATTERS

     SEC. 401. STANDARD FOR REVERSAL BY COURT OF APPEALS FOR 
                   VETERANS CLAIMS OF ERRONEOUS FINDING OF FACT BY 
                   BOARD OF VETERANS' APPEALS.

       (a) Standard for Reversal.--Paragraph (4) of subsection (a) 
     of section 7261 is amended--
       (1) by inserting ``adverse to the claimant'' after 
     ``material fact''; and
       (2) by inserting ``or reverse'' after ``and set aside''.
       (b) Requirements for Review.--Subsection (b) of that 
     section is amended to read as follows:
       ``(b) In making the determinations under subsection (a), 
     the Court shall review the record of proceedings before the 
     Secretary and the Board of Veterans' Appeals pursuant to 
     section 7252(b) of this title and shall--
       ``(1) take due account of the Secretary's application of 
     section 5107(b) of this title; and
       ``(2) take due account of the rule of prejudicial error.''.
       (c) Applicability.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall take effect on 
     the date of the enactment of this Act.
       (2) The amendments made by this section shall apply with 
     respect to any case pending for decision before the United 
     States Court of Appeals for Veterans Claims other than a case 
     in which a decision has been entered before the date of the 
     enactment of this Act.

     SEC. 402. REVIEW BY COURT OF APPEALS FOR THE FEDERAL CIRCUIT 
                   OF DECISIONS OF LAW OF COURT OF APPEALS FOR 
                   VETERANS CLAIMS.

       (a) Review.--Section 7292(a) is amended by inserting ``a 
     decision of the Court on a rule of law or of'' in the first 
     sentence after ``the validity of''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to any appeal--
       (1) filed with the United States Court of Appeals for the 
     Federal Circuit on or after the date of the enactment of this 
     Act; or
       (2) pending with the United States Court of Appeals for the 
     Federal Circuit as of the date of the enactment of this Act 
     in which a decision has not been rendered as of that date.

     SEC. 403. AUTHORITY OF COURT OF APPEALS FOR VETERANS CLAIMS 
                   TO AWARD FEES UNDER EQUAL ACCESS TO JUSTICE ACT 
                   FOR NON-ATTORNEY PRACTITIONERS.

       The authority of the United States Court of Appeals for 
     Veterans Claims to award reasonable fees and expenses of 
     attorneys under section 2412(d) of title 28, United States 
     Code, shall include authority to award fees and expenses, in 
     an amount determined appropriate by the United States Court 
     of Appeals for Veterans Claims, of individuals admitted to 
     practice before the Court as non-attorney practitioners under 
     subsection (b) or (c) of Rule 46 of the Rules of Practice and 
     Procedure of the United States Court of Appeals for Veterans 
     Claims.
       Amend the title so as to read ``An Act to amend title 38, 
     United States Code, to improve authorities of the Department 
     of Veterans Affairs relating to veterans' compensation, 
     dependency and indemnity compensation, and pension benefits, 
     education benefits, housing benefits, memorial affairs 
     benefits, life insurance benefits, and certain other benefits 
     for veterans, to improve the administration of benefits for 
     veterans, to make improvements in procedures relating to 
     judicial review of veterans' claims for benefits, and for 
     other purposes.''.
  Mr. REID. Mr. President, I ask unanimous consent that the Senate 
concur in the amendment of the House, and that a statement of Senator 
Rockefeller be printed in the Record as if read.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ROCKEFELLER. Mr. President, as Chairman of the Committee on 
Veterans' Affairs, I urge the Senate to pass S. 2237, the proposed 
``Veterans Benefits Act of 2002.''
  Mr. President, the pending measure is the final compromise version of 
an omnibus bill that would improve a variety of veterans benefits, from 
pensions for heroes awarded the Medal of Honor to fairness in 
evaluating the disabilities of veterans with hearing loss. I will 
briefly highlight some of the provisions of which I am most proud, and 
refer my colleagues seeking more detail to the Joint Explanatory 
Statement accompanying this statement.
  S. 2237, which I will refer to as the ``Compromise Agreement,'' would 
eliminate many inequities and obstacles that affect veterans and their 
families. I thank Ranking Member Arlen Specter and his staff for their 
efforts on behalf of our Nation's veterans, and my colleagues in the 
House for working with our Committee staff to craft this agreement.
  I would also like to take this moment to note the loss of a dear 
colleague, a dedicated advocate for veterans. Many have eulogized 
Senator Paul Wellstone in the past few weeks, and I do not need to tell 
my colleagues of his passion, his energy, and his unwavering commitment 
to shout on behalf of those who cannot speak for themselves. However, 
few have noted his work on behalf of America's veterans, particularly 
those most neglected by a Nation that has not always kept its promises. 
Senator Wellstone worked on behalf of homeless veterans, veterans 
suffering from the mental illnesses that can be the silent legacy of 
the battlefield, and for those who returned from war to fight their own 
government's denials about the invisible wounds caused by chemicals and 
radiation. Paul Wellstone may have launched his political career in 
protest of the Vietnam War, but as a Senator, he chose to fight for 
those who served. It is up to all of us now to carry on his work.
  As veterans and their families--like the rest of Americans expect to 
enjoy--lengthening life spans, we must regularly review and update laws 
crafted in earlier times. Last year, I proudly authored legislation to 
allow survivors of severely disabled veterans to continue receiving VA 
healthcare coverage through the program called CHAMPVA after age 65. 
Section 101 of the Compromise Agreement would take this further, 
allowing the eligible surviving spouses of veterans who died from 
service-connected disabilities or in the line of duty to retain their 
eligibility for CHAMPVA benefits even if they remarry after age 55. 
Those who sacrificed so much for their Nation throughout their lives 
should not be further penalized by losing the special healthcare safety 
net that CHAMPVA offers.
  Mr. President, Congress last year authorized VA to offer special 
monthly compensation to women who had lost one or both breasts as a 
result of military service. VA's subsequently promulgated regulations 
limited eligibility for this benefit to women who had undergone simple 
or radical mastectomy. Even if this restriction plays no role in a 
woman's medical decisions, it implies unfairly that tissue-sparing 
treatments create no physical, emotional, or financial obstacles to a 
woman's health. Section 102 of the Compromise Agreement would extend 
this eligibility to women veterans who have endured service-connected 
loss of 25 percent or more of a breast's tissue, or radiation treatment 
to a breast. As women comprise a growing percentage of our Armed 
Services, we must ensure that they receive fair recognition for their 
sacrifices, and equitable assistance in overcoming the medical 
challenges that they face.
  I am enormously proud that the Compromise Agreement would help 
veterans who have both service-connected and unrelated hearing loss 
expect a fair disability rating. Currently, VA can consider whether a 
veteran has bilateral damage to ``paired'' organs or extremities--such 
as kidneys, lungs, feet, or hands--when rating the veteran's 
disability, even if only one of the paired organs was injured through 
military service. However, VA can only consider how non-service-
connected hearing loss might further disable a veteran if he or she 
suffers total deafness in both ears. Section 103 of the Compromise 
Agreement would allow VA to consider whether a veteran suffers from 
partial non-service-connected hearing loss in one ear when evaluating 
disability caused by compensable service-connected hearing loss in the 
other ear. This would not only extend the same special consideration to 
damage to the ears that VA gives to other paired organs, but would 
assist veterans whose hearing loss has been made even worse due to 
military service.
  This provision represents an important step for veterans with hearing 
loss, but other challenges remain. America's aging veterans suffer 
increasingly from hearing loss and

[[Page 22913]]

tinnitus, and the number of disability claims for hearing disorders 
submitted to VA continues to climb. Many veterans who left service 
decades ago received an ineffective hearing examination at separation, 
or no evaluation at all, leaving VA with a legacy of incomplete records 
and uncertain clinical evidence. This affects not only veterans with 
hearing loss, but all veterans who must wait for VA to process a 
staggering burden of hearing loss claims without a clear scientific 
standard on past exposures.
  Section 104 of the Compromise Agreement would require VA to contract 
with the National Academy of Sciences to review evidence on hearing 
damage suffered during military service from World War II to the 
present. As part of this study, scientists would determine when the 
audiometric testing and hearing conservation programs initiated by the 
military services became adequate for VA to assess whether an 
individual veteran had hearing loss at or prior to separation. The 
Compromise Agreement would also require VA to review its own records on 
hearing loss or tinnitus in veterans, including the cost of 
adjudicating these claims under the current system and the cost of 
treating hearing disorders. These reports together should provide VA's 
Secretary with critical tools to decide how to assist veterans whose 
hearing loss may have resulted from damage suffered years ago quickly 
and fairly.
  Mr. President, Section 304 of the Compromise Agreement would increase 
the special pension granted to recipients of the Medal of Honor as a 
token of recognition for their extraordinary heroism from $600 to 
$1000, and adjust this pension annually with inflation. The agreement 
would also provide a one-time payment to Medal of Honor recipients 
who--due to a time lag between the date of the act of valor and the 
actual awarding of the Medal of Honor--received this pension only after 
a delay.
  The next section of the Compromise Agreement grew from legislation 
introduced by Senator Paul Wellstone, another example of his advocacy 
on behalf of those who serve this Nation. The Soldiers' and Sailors' 
Relief Act of 1940 (SSCRA) applies to servicemembers, including 
National Guard Members, who serve on active duty under title 10 of the 
United States code. It suspends enforcement of certain civil 
liabilities against servicemembers on active duty so that they can 
devote their concentration to their duties.
  National Guard members may also be called to active duty by their 
State Governors under title 32. National Guard missions under title 32 
are funded by the federal government ``to perform training and other 
duty.'' However, if the National Guard members are called up under 
title 32, rather than title 10, they are not entitled to SSCRA 
protections.
  In the days following September 11, 2001, under the direction of the 
President, the Federal Aviation Administration and the Secretary of 
Defense coordinated the use of National Guard members at commercial 
airports. These National Guard members, called to active duty from four 
to six months, clearly served a national mission. However, because they 
were called up under title 32, they were not entitled to SSCRA 
protections.
  Section 305 of the Compromise Agreement would extend SSCRA 
protections to include National Guard members called to active service 
for more than 30 consecutive days in response to a national emergency 
declared by the President, even if they serve under title 32. This 
provision is intended to protect members of the National Guard when 
called up under circumstances similar to those following last 
September's terrorist attacks.
  Mr. President, it is time to amend the Soldiers' and Sailors' Relief 
Act of 1940 to reflect the critical role that National Guard members 
now play in protecting this Nation. These National Guard members have 
increasingly been called onto active duty since September 11th. Like 
all active duty servicemembers, National Guard members deserve these 
rights and legal protections to allow them to concentrate on national 
defense. Paul Wellstone recognized this, and took steps to make sure 
that those who don the uniform to protect our freedoms--at home or 
abroad--have earned our protection.
  The Compromise Agreement would also ensure that veterans receive a 
full judicial review when appealing claims denied by VA. The ``benefit 
of the doubt'' rule, the standard applicable to proceedings before VA, 
states that a veteran's claim is granted unless the preponderance of 
the evidence is against the claimant. This rule, unique in 
administrative law, recognizes the tremendous sacrifices made by the 
men and women who have served in our Armed Forces. A number of veterans 
service organizations have expressed concern that the current appellate 
process is overly deferential to VA findings of fact that are adverse 
to veteran claimants. Specifically, these groups argue that the 
``clearly erroneous'' standard applied by the U.S. Court of Appeals for 
Veterans Claims (CAVC) when reviewing Board of Veterans' Appeals (BVA) 
cases results in veterans' claims receiving only cursory review on 
appeal, not allowing for full application of the ``benefit of the 
doubt'' rule.
  Section 401 of the Compromise Agreement would maintain the current 
``clearly erroneous'' standard of review, but modify the requirements 
of the review the court must perform when making determinations under 
section 7261(a) of title 38. CAVC would be specifically required to 
examine the record of proceedings--that is, the record on appeal--
before the Secretary and BVA. Section 401 would also provide special 
emphasis during the judicial process to the ``benefit of the doubt'' 
provisions of section 5107(b) as CAVC makes findings of fact in 
reviewing BVA decisions. The combination of these changes is intended 
to provide for more searching appellate review of BVA decisions, and 
thus give full force to the ``benefit of doubt'' provision. The 
addition of the words ``or reverse'' after ``and set aside'' in section 
7261(a)(4) is intended to emphasize that CAVC should reverse clearly 
erroneous findings when appropriate, rather than remand the case. This 
new language in section 7261 would overrule the recent U.S. Court of 
Appeals for the Federal Circuit decision of Hensley v. West, which 
emphasized that CAVC should perform only limited, deferential review of 
BVA decisions, and stated that BVA fact-finding ``is entitled on review 
to substantial deference.'' However, nothing in this new language is 
inconsistent with the existing section 7261(c), which precludes the 
court from conducting trial de novo when reviewing BVA decisions, that 
is, receiving evidence that is not part of the record before BVA.
  Section 402 of the Compromise Agreement would also expand the Federal 
Circuit's authority to review CAVC decisions based on rules of law that 
are not derived from a specific statute or regulation. This change 
would allow the Federal Circuit to review comprehensively any CAVC 
decisions of law that adversely affect appellate reviews of veterans' 
claims.
  Currently, attorneys and non-attorney practitioners supervised by 
attorneys who represent certain claimants may receive compensation for 
their services under the Equal Access to Justice Act. Section 403 of 
the Compromise Agreement would allow non-attorney practitioners 
admitted to practice before the CAVC, such as veterans service 
organization representatives, to be awarded fees under this act without 
the signature of a supervising attorney. This would make organizations 
that provide invaluable assistance to veterans eligible for richly 
deserved compensation.
  The Joint Explanatory Statement contains language responding to the 
Executive Branch's interpretation that the CAVC is part of the 
Executive Branch, and subject to rescissions of budget pursuant to 
section 1403 of Public Law 107-206. I wish to reiterate that it is the 
Committees' intent to clarify that the CAVC is not part of the 
Executive Branch. The Committees have previously stated as much, 
finding in reports in both the House and Senate that the ``Court, 
established by the Congress under Article I of the Constitution to 
exercise judicial power,

[[Page 22914]]

has unusual status as an independent tribunal that is not subject to 
the control of the President or the executive branch.'' It is my hope 
that the Committees will not have to address this issue again through 
legislation or other means.
  Mr. President, in conclusion, I want to thank Senator Specter and his 
benefits staff--Bill Tuerk, Jon Towers, David Goetz, and Chris 
McNamee--for diligently working with me and my benefits staff--Mary 
Schoelen, Julie Fischer, Chris Reinard, and Dahlia Melendrez--to craft 
this legislation during such an incredible year. I urge my colleagues 
to support this bipartisan commitment to our Nation's veterans, and to 
send a strong message of support to the men and women who now serve in 
uniform by caring for those who served before.
  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:

    Explanatory Statement on House Amendment to Senate Bill, S. 2237

       S. 2237, as amended, the ``Veterans Benefits Act of 2002,'' 
     reflects a Compromise Agreement the Senate and House 
     Committees on Veterans' Affairs have reached on the following 
     bills considered in the House and Senate during the 107th 
     Congress: S. 2237 (``Senate Bill''), H.R. 2561, H.R. 3423, 
     H.R. 4085, H.R. 4940, and H.R. 5055 (``House Bills''). S. 
     2237, as amended, passed the Senate on September 26, 2002; 
     H.R. 2561 and H.R. 3423, as amended, passed the House on 
     December 20, 2001; H.R. 4085, as amended, passed the House on 
     May 21, 2002; and H.R. 4940, as amended, and H.R. 5055 passed 
     the House on July 22, 2002.
       The Senate and House Committees on Veterans' Affairs have 
     prepared the following explanation of S. 2237, as amended, 
     (``Compromise Agreement''). Differences between the 
     provisions contained in the Compromise Agreement and the 
     related provisions of S. 2237, H.R. 2561, H.R. 3423, H.R. 
     4085, H.R. 4940, H.R. 5055, 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--COMPENSATION AND BENEFITS IMPROVEMENTS


 retention of civilian health and medical program of the department of 
     veterans affairs for surviving spouses remarrying after age 55

                              Current law

       Section 103(d) of title 38, United States Code, prohibits a 
     surviving spouse who has remarried from receiving dependency 
     and indemnity compensation (``DIC''), VA health insurance 
     under the Civilian Health and Medical Program of the 
     Department of Veterans Affairs (``CHAMPVA''), home loan, and 
     education benefits. These benefits may be reinstated in the 
     event the subsequent remarriage is terminated.

                               House bill

       Section 3 of H.R. 4085 would allow a surviving spouse who 
     remarries after attaining age 65 to retain DIC, CHAMPVA 
     health insurance, home loan, and education benefits. Spouses 
     who remarried at age 65 or older prior to enactment of the 
     bill would have one year from the date of enactment to apply 
     for reinstatement of DIC and related benefits. The amount of 
     DIC would be paid with no reduction of certain other benefits 
     to which the surviving spouse might be entitled.

                              Senate Bill

       The Senate Bill contains no comparable provision.

                          Compromise agreement

       Section 101 of the Compromise Agreement would provide that 
     a surviving spouse, upon remarriage after attaining age 55, 
     would retain CHAMPVA eligibility. Surviving spouses who 
     remarried after attaining age 55 but prior to enactment of 
     this Act would have one year to apply for reinstatement of 
     this benefit. The Committees expect the Secretary will 
     maintain data concerning the number of surviving spouses who 
     become eligible or retain eligibility under this provision.
       The Committees intend in the 108th Congress to consider 
     full restoration of benefits for surviving spouses who 
     remarry after attaining age 55.


CLARIFICATION OF ENTITLEMENT TO SPECIAL MONTHLY COMPENSATION FOR WOMEN 
       VETERANS WHO HAVE SERVICE-CONNECTED LOSS OF BREAST TISSUE

                              Current law

       Section 1114(k) of title 38, United States Code, authorizes 
     the Department of Veterans Affairs (``VA'') to provide 
     special monthly compensation to any woman veteran who ``has 
     suffered the anatomical loss of one or both breasts 
     (including loss by mastectomy)'' as a result of military 
     service. Regulations published at section 4.116 of title 38, 
     Code of Federal Regulations, have limited this compensation 
     to ``Anatomical loss of a breast exists when there is 
     complete surgical removal of breast tissue (or the equivalent 
     loss of breast tissue due to injury). As defined under this 
     section, radical mastectomy, modified radical mastectomy, and 
     simple (or total) mastectomy result in anatomical loss of a 
     breast, but wide local excision, with or without significant 
     alteration of size or form, does not.''

                              Senate bill

       Section 101 of S. 2237 would amend section 1114(k) of title 
     38, United States Code, to specify that women veterans who 
     have suffered the anatomical loss of half of the tissue of 
     one or both breasts in or as a result of military service may 
     be eligible for special monthly compensation.

                               House bill

       The House Bills contain no comparable provision.

                          Compromise agreement

       Section 102 of the Compromise Agreement follows the Senate 
     language, and would amend it to extend eligibility to women 
     veterans who have suffered the anatomical loss of 25 percent 
     or more of tissue from one or both breasts (including loss by 
     mastectomy or partial mastectomy) or who received radiation 
     treatment of breast tissue. The Committees intend that this 
     change should extend eligibility for special monthly 
     compensation to women veterans whose medical treatments 
     (other than ``cosmetic surgery'') or injuries have resulted 
     in a significant change in size, form, function, or 
     appearance of one or both breasts.


  SPECIFICATION OF HEARING LOSS REQUIRED FOR COMPENSATION FOR HEARING 
                         LOSS IN PAIRED ORGANS

                              Current law

       Under section 1160 of title 38, United States Code, special 
     consideration is extended to a veteran's service-connected 
     disabilities in ``paired organs or extremities,'' such as 
     kidneys, lungs, feet, or hands. For these paired organs or 
     extremities, VA is authorized when rating disability to 
     consider any degree of damage to both organs, even if only 
     one resulted from military service. Total impairment is not a 
     requirement for kidneys, hands, feet, or lungs. Proportional 
     impairment, such as ``the loss or loss of use of one kidney 
     as a result of service-connected disability and involvement 
     of the other kidney as a result of non-service-connected 
     disability,'' is specifically provided for in subsections 
     (2), (4), and (5) of section 1160(a) of title 38, United 
     States Code. However, total deafness in both ears is required 
     under section 1160(a)(3) of title 38, United States Code, for 
     special consideration of hearing loss.

                              Senate bill

       Section 102 of S. 2237 would eliminate the word ``total'' 
     from section 1160(a)(3) of title 38, United States Code, and 
     allow VA to consider partial non-service-connected hearing 
     loss in one ear when rating disability for veterans with 
     compensable service-connected hearing loss in the other ear.

                               House bill

       The House Bills contain no comparable provision.

                          Compromise agreement

       Section 103 of the Compromise Agreement follows the Senate 
     language.


  ASSESSMENT OF ACOUSTIC TRAUMA ASSOCIATED WITH MILITARY SERVICE FROM 
                        WORLD WAR II TO PRESENT

                              Current law

       There is no applicable current law.

                              Senate bill

       Section 103(a) of S. 2237 would authorize the Secretary to 
     establish a presumption of service connection for hearing 
     loss or tinnitus in veterans who served in certain military 
     occupational specialties during specific periods of time if 
     VA finds that evidence warrants such a presumption. Section 
     103(b) would extend presumption rebuttal provisions in title 
     38, United States Code, to cover service-connected hearing 
     loss, should such a presumption be established.
       Section 103(c) of the Senate Bill would require VA to enter 
     into a contract with the National Academy of Sciences 
     (``NAS'') or an equivalent scientific organization to review 
     scientific evidence on forms of acoustic trauma that could 
     contribute to hearing disorders for personnel serving in 
     specific military occupational specialties. Section 
     103(c)(2)(B) of the Senate Bill would direct NAS to identify 
     forms of acoustic trauma likely to cause hearing damage in 
     servicemembers, and, in section 103(c)(2)(C), to determine 
     whether such damage would be immediate, cumulative, or 
     delayed. Section 103(c)(2)(D) of the Senate Bill would 
     require NAS to assess when audiometric data collected by the 
     military services became adequate to allow an objective 
     assessment of individual exposure by VA, examining a 
     representative sample of records from World War II to present 
     by period of service. Section 103(c)(2)(E) of the Senate Bill 
     would require NAS to identify military occupational 
     specialties in which servicemembers are likely to be exposed 
     to sufficient acoustic trauma to cause hearing disorders.
       Section 103(d) of S. 2237 would require VA to report on 
     medical care provided to veterans for hearing disorders from 
     fiscal years 1999-2001; on the number of disability 
     compensation claims received and granted for hearing loss, 
     tinnitus, or both during those

[[Page 22915]]

     years; and an estimate of the total cost to VA of 
     adjudicating those claims in full-time employee equivalents.

                               House bill

       The House Bills contain no comparable provision.

                          Compromise agreement

       Section 104 of the Compromise Agreement would strike 
     sections 103(a) and 103(b) of the Senate Bill authorizing a 
     presumption of service connection. The Compromise Agreement 
     follows the Senate language requiring VA to enter into a 
     contract with NAS, but would change the focus of the study to 
     assessment of acoustic trauma associated with military 
     service from World War II to present.
       The Compromise Agreement would strike sections 
     103(c)(2)(B), 103(c)(2)(D), 103(c)(2)(E), and all references 
     to military occupational specialties. The Compromise 
     Agreement follows the Senate language requiring NAS to 
     determine how much exposure to acoustic trauma or noise 
     damage during military service might cause or contribute to 
     hearing loss, hearing threshold shift, or tinnitus, and 
     whether this damage may be immediate- or delayed-onset, 
     cumulative, progressive, or a combination of these.
       The Compromise Agreement would preserve provisions 
     requiring NAS to assess when audiometric measures became 
     adequate to assess individual hearing threshold shift 
     reliably and when sufficiently protective hearing 
     conservation measures became available. It would also add a 
     third provision requiring NAS to identify age, occupational 
     history, and other factors which could contribute to an 
     individual's noise-induced hearing loss.
       In assessing when audiometric data collected by the 
     military became adequate for VA to evaluate if a veteran's 
     hearing threshold shift could be detected at or prior to 
     separation, the Committees intend for NAS to review and 
     report on a representative sample of individual records. This 
     should reflect not only an appropriate distribution of 
     individuals among the various Armed Forces, but within each 
     military service branch so that these records represent 
     servicemembers who might reasonably be expected to have 
     different levels of noise exposure in the course of their 
     duties. The representative sample should also include records 
     of service-
     members discharged during or after distinct periods of war or 
     conflict and consider the environment in which they served in 
     order to gauge how adequately each branch collected 
     audiometric data following World War II, the Korean conflict, 
     the Vietnam era, and during and following the Persian Gulf 
     War.
       The Compromise Agreement would generally follow the Senate 
     language requiring VA to report on hearing loss claims and 
     medical treatment for hearing disorders. The Compromise 
     Agreement would amend this language to refer to the number of 
     decisions issued and their results, rather than claims 
     submitted in fiscal years 2000 through 2002, and would remove 
     references to military occupational specialties.

                       TITLE II--MEMORIAL AFFAIRS


   PROHIBITION ON CERTAIN ADDITIONAL BENEFITS FOR PERSONS COMMITTING 
                             CAPITAL CRIMES

                              Current law

       Sections 2411 and 2408(d) of title 38, United States Code, 
     prohibit persons who are convicted of capital crimes from 
     interment or memorialization in National Cemetery 
     Administration cemeteries, Arlington National Cemetery 
     (``ANC''), or a State cemetery that receives VA grant 
     funding. Section 5313 of title 38, United States Code, 
     further limits VA benefits available to veterans who die 
     while fleeing prosecution or after being convicted of a 
     capital crime.

                              Senate bill

       Section 402 of S. 2237 would prohibit the issuance of 
     Presidential Memorial Certificates, flags, and memorial 
     headstones or grave markers to veterans convicted of or 
     fleeing from prosecution for a State or Federal capital 
     crime.

                               House bill

       The House Bills contain no comparable provision.

                          Compromise agreement

       Section 201 of the Compromise Agreement follows the Senate 
     language.


 PROCEDURES FOR DISQUALIFICATION OF PERSONS COMMITTING CAPITAL CRIMES 
        FOR INTERMENT OR MEMORIALIZATION IN NATIONAL CEMETERIES

                              Current Law

       Section 2411 of title 38, United States Code, prohibits 
     interment or memorialization in National Cemetery 
     Administration cemeteries or in Arlington National Cemetery 
     (``ANC'') of any person convicted of a capital crime. This 
     section further prohibits interment or memorialization of 
     persons found by the Secretary of Veterans Affairs or the 
     Secretary of the Army to have committed capital crimes but 
     who avoided conviction of the crime through flight or death 
     preceding prosecution. In such cases, the Secretary of 
     Veterans Affairs or the Secretary of the Army must receive 
     notice from the Attorney General of the United States, or the 
     appropriate State official, of the Secretary's own finding 
     before the prohibition shall apply.

                              Senate bill

       Section 403 of S. 2237 would eliminate the requirement that 
     the Secretary of Veterans Affairs or the Secretary of the 
     Army be notified of a finding by the Attorney General or the 
     appropriate State official in cases of persons who are found 
     to have committed capital crimes but who avoided conviction 
     of the crime through flight or death preceding prosecution.

                               House bill

       The House Bills contain no comparable provision.

                          Compromise agreement

       Section 202 of the Compromise Agreement follows the Senate 
     language.


 APPLICATION OF DEPARTMENT OF VETERANS AFFAIRS BENEFIT FOR GOVERNMENT 
MARKERS FOR MARKED GRAVES OF VETERANS AT PRIVATE CEMETERIES TO VETERANS 
                  DYING ON OR AFTER SEPTEMBER 11, 2001

                              Current law

       Section 2306(d)(1) provides that the Secretary shall 
     furnish a government marker to those families who request one 
     for the marked grave of a veteran buried at a private 
     cemetery, who died on or after December 27, 2001.

                               House bill

       Section 6 of H.R. 4940 would make section 2306(d)(1) 
     retroactive to veterans who died on or after September 11, 
     2001.

                              Senate bill

       The Senate Bill contains no comparable provision.

                          Compromise agreement

       Section 203 of the Compromise Agreement follows the House 
     language.


 AUTHORIZATION OF PLACEMENT OF MEMORIAL IN ARLINGTON NATIONAL CEMETERY 
  HONORING WORLD WAR II VETERANS WHO FOUGHT IN THE BATTLE OF THE BULGE

                              Current law

       Section 2409 of title 38, United States Code, authorizes 
     the Secretary of Army to erect appropriate memorials or 
     markers in Arlington National Cemetery to honor the memory of 
     members of the Armed Forces.

                               House bill

       H.R. 5055 would authorize the Secretary of the Army to 
     place in ANC a new memorial marker honoring veterans who 
     fought in the Battle of the Bulge during World War II. The 
     Secretary of the Army would have exclusive authority to 
     approve an appropriate design and site within ANC for the 
     memorial.

                              Senate bill

       The Senate Bill contains no comparable provision.

                          Compromise agreement

       Section 204 of the Compromise Agreement would authorize the 
     Secretary of the Army to place in ANC a new memorial marker 
     honoring veterans who fought in the Battle of the Bulge.

                        TITLE III--OTHER MATTERS


   INCREASE IN AGGREGATE ANNUAL AMOUNT AVAILABLE FOR STATE APPROVING 
AGENCIES FOR ADMINISTRATIVE EXPENSES FOR FISCAL YEARS 2003, 2004, 2005, 
                             2006, AND 2007

                              Current law

       Section 3674(a)(4) of title 38, United States Code, funds 
     State approving agencies. From fiscal years 1995 to 2000, 
     State approving agency (``SAA'') funding was capped, with no 
     annual increase, at $13 million. Public Law 106-419 increased 
     SAA funding to $14 million for fiscal years 2001 and 2002. 
     Under current law, the authorization amount was reduced to 
     $13 million as of October 1, 2002. SAAs are the agencies that 
     determine which schools, courses, and training programs 
     qualify as eligible for veterans seeking to use their GI Bill 
     benefits.

                              Senate bill

       Section 201 of S. 2237 would restore SAA funding to $14 
     million per year and would increase it to $18 million per 
     year during fiscal years 2003, 2004, and 2005.

                               House bill

       Section 6 of H.R. 4085 contains an identical provision.

                          Compromise agreement

       Section 301 of the Compromise Agreement would restore SAA 
     funding at $14 million for fiscal year 2003, $18 million for 
     fiscal year 2004, $18 million for fiscal year 2005, $19 
     million for fiscal year 2006, and $19 million for fiscal year 
     2007.


 AUTHORITY FOR VETERANS' MORTGAGE LIFE INSURANCE TO BE CARRIED BEYOND 
                                 AGE 70

                              Current law

       Section 2106(i)(2) of title 38, United States Code, 
     provides that Veterans' Mortgage Life Insurance (``VMLI'') 
     shall be terminated on the veteran's seventieth birthday. 
     VMLI is designed to provide financial protection to cover 
     eligible veterans' home mortgages in the event of death. VMLI 
     is issued only to those severely disabled veterans who have 
     received grants for Specially Adapted Housing from the 
     Department of Veterans Affairs.

                               House bill

       Section 5(b) of H.R. 4085 would permit veterans eligible 
     for specially-adapted housing grants to continue their VMLI 
     coverage beyond age 70. No new policies would be issued after 
     age 70.

[[Page 22916]]



                              Senate bill

       The Senate Bill contains no comparable provision.

                          Compromise agreement

       Section 302 of the Compromise Agreement follows the House 
     language.


        AUTHORITY TO GUARANTEE HYBRID ADJUSTABLE RATE MORTGAGES

                              Current law

       There is no authorization in current law for VA to 
     guarantee adjustable rate mortgages (``ARMs'') and hybrid 
     adjustable rate mortgages (``hybrid ARMs''). A hybrid ARM 
     combines features of fixed rate mortgages and adjustable rate 
     mortgages. A hybrid ARM has a fixed rate of interest for at 
     least the first 3 years of the loan, with an annual interest 
     rate adjustment after the fixed rate has expired.

                              Senate bill

       Section 301 of S. 2237 would authorize VA to establish a 
     three-year pilot program to guarantee hybrid ARMs and 
     reauthorize a fiscal year-1993 to 1995 pilot program to 
     guarantee conventional ARMs. This authority would begin in 
     fiscal year 2003 and expire at the end of fiscal year 2005.

                               House bill

       The House Bills contain no comparable provision.

                          Compromise agreement

       Section 303 of the Compromise Agreement would authorize VA 
     to guarantee hybrid ARMs for a period of two years. The 
     effective date of this provision would be October 1, 2003.


    INCREASE IN THE AMOUNT PAYABLE AS MEDAL OF HONOR SPECIAL PENSION

                              Current law

       Section 1562 of title 38, United States Code, provides a 
     special pension of $600 per month to recipients of the Medal 
     of Honor. Eligibility to receive the Medal of Honor special 
     pension is contingent upon having first been awarded the 
     Medal of Honor.

                              Senate bill

       Section 104 of S. 2237 would increase the Medal of Honor 
     special pension from $600 to $1,000 per month. Beginning in 
     January 2003, the pension amount would be adjusted annually 
     to maintain the value of the pension in the face of the 
     rising cost of living. The amount of this adjustment would 
     match the percentage of the cost-of-living adjustment paid to 
     Social Security recipients. The Senate Bill would also 
     provide for a one-time, lump-sum payment in the amount of 
     special pension the recipient would have received between the 
     date of the act of valor and the date that the recipient's 
     pension actually commenced.

                               House bill

       H.R. 2561 would increase the special pension payable to 
     Medal of Honor recipients from $600 to $1,000 per month, and 
     provide a lump sum payment for existing Medal of Honor 
     recipients in an amount equal to the total amount of special 
     pension that the person would have received had the person 
     received special pension during the period beginning the 
     first day of the month that began after the act giving rise 
     to the receipt of the Medal of Honor, and ending with the 
     last day of the month preceding the month that such person's 
     special compensation commenced. H.R. 2561 also would provide 
     criminal penalties for the unauthorized purchase or 
     possession of the Medal and for making a false representation 
     as a Medal recipient.

                          Compromise agreement

       Section 304 of the Compromise Agreement follows the Senate 
     language, but would modify the effective date of the 
     provision to September 1, 2003. It is the Committee's 
     understanding that the first month a Medal of Honor recipient 
     would receive special pension is October 2003.
       It is the Committees' intent that the lump sum payment of 
     special pension be determined using the rates of special 
     pension and the laws of eligibility in effect (including 
     applicable age requirements) for months beginning after an 
     individual's act of gallantry. Excluded from this rule would 
     be the law of eligibility requiring an individual to have 
     been awarded a Medal of Honor.


EXTENSION OF PROTECTIONS UNDER SOLDIERS' AND SAILORS' CIVIL RELIEF ACT 
OF 1940 TO NATIONAL GUARD MEMBERS CALLED TO ACTIVE DUTY UNDER TITLE 32, 
                           UNITED STATES CODE

                              Current law

       The Soldiers' and Sailors' Civil Relief Act of 1940 
     (``SSCRA''), sections 510 et seq., of title 50, United States 
     Code Appendix, suspends enforcement of certain civil 
     liabilities and provides certain rights and legal protections 
     to servicemembers who have been called up to active duty 
     under title 10, United States Code. However, these 
     protections do not extend to National Guard members called to 
     duty under section 502(f) of title 32, United States Code, 
     ``to perform training or other duty.'' Certain homeland 
     security duties performed under title 32, United States Code, 
     such as protecting the nation's airports, have been carried 
     out at the request and expense of the Federal government with 
     National Guard members under the command of their state 
     governors.

                              Senate bill

       Section 401 of S. 2237 would expand SSCRA protections to 
     include those National Guard members serving full-time, upon 
     an order of the Governor of a State at the request of the 
     head of a Federal law enforcement agency and with the 
     concurrence of the Secretary of Defense, under 502(f) of 
     title 32, United States Code for homeland security purposes.

                               House bill

       The House Bills contain no comparable provision.

                          Compromise agreement

       Section 305 of the Compromise Agreement would provide that 
     when members of the National Guard are called to active 
     service for more than 30 consecutive days under section 
     502(f) of title 32, United States Code, to respond to a 
     national emergency declared by the President, coverage under 
     the provisions of the SSCRA would be available. The 
     Committees note that this provision is intended to extend 
     protections of the SSCRA to members of the National Guard 
     when called to duty under circumstances similar to those 
     following the terrorist attacks of September 11, 2001.


               EXTENSION OF INCOME VERIFICATION AUTHORITY

                              Current law

       Section 6103(l)(7)(D) of the Internal Revenue Code gives 
     the Internal Revenue Service (``IRS'') authority to furnish 
     income information to the VA from IRS records so that VA 
     might determine eligibility for VA need-based pension, 
     parents dependency and indemnity compensation, and priority 
     for VA health-care services. This provision currently expires 
     on September 30, 2003, pursuant to Public Law 105-33.
       Section 5317 of title 38, United States Code, provides 
     parallel authority for VA to use IRS information and requires 
     VA to notify applicants for needs-based benefits that income 
     information furnished by the applicant may be compared with 
     the information obtained from the Departments of Health and 
     Human Services and Treasury under section 6103(l)(7)(D). This 
     parallel authority is scheduled to expire on September 30, 
     2008, pursuant to Public Law 106-409.

                              Senate bill

       Section 106(a) of S. 2237 would extend section 
     6103(l)(7)(D) of the Internal Revenue Code through September 
     30, 2011. Section 106(b) would extend section 5317 of title 
     38, United States Code, through September 30, 2011.

                               House bill

       The House Bills contain no comparable provision.

                          Compromise agreement

       Section 306 of the Compromise Agreement would extend 
     section 6103(l)(7)(D) of the Internal Revenue Code through 
     September 30, 2008.


                        FEE FOR LOAN ASSUMPTION

                              Current law

       Section 3729(b)(2)(1) of title 38, United States Code, 
     requires a 0.50 percent loan fee for active-duty 
     servicemembers, veterans, Reservists, and others 
     participating in loan assumptions under section 3714.

                              Senate bill

       The Senate Bill contains no comparable language.

                               House bill

       The House Bills contain no comparable language.

                          Compromise agreement

       Section 307 of the Compromise Agreement would increase the 
     loan fee for assumptions for loans closed more than 7 days 
     after enactment in fiscal year 2003 from 0.50 percent to 1.0 
     percent. The Committees intend this fee increase to expire at 
     the end of fiscal year 2003.

                       TITLE IV--JUDICIAL MATTERS

       The U.S Court of Appeals for Veterans Claims (``CAVC'') is 
     an Article I Court of limited jurisdiction. It has come to 
     the Committees' attention that the Administration has 
     disregarded Congressional intent in interpreting the CAVC to 
     be part of the Executive Branch and subject to rescissions of 
     Executive Branch agency budgets, pursuant to section 1403 of 
     Public Law 107-206. The Committees note that while the budget 
     for the Court is included in the President's budget, the 
     Executive Branch has no authority to review it. Public Law 
     100-687, section 4082(a). It is the Committees' intent to 
     clarify that the CAVC is not part of the Executive Branch. 
     The Committees have so stated on other occasions, e.g., ``The 
     Court, established by the Congress under Article I of the 
     Constitution to exercise judicial power, has unusual status 
     as an independent tribunal that is not subject to the control 
     of the President or the executive branch.'' House of 
     Representatives Report 107-156, July 24, 2001, and Senate 
     Report 107-86, October 15, 2001.


   STANDARD FOR REVERSAL BY COURT OF APPEALS FOR VETERANS CLAIMS OF 
        ERRONEOUS FINDING OF FACT BY BOARD OF VETERANS' APPEALS

                              Current law

       Under section 7261(a)(4) of title 38, United States Code, 
     the Court of Appeals for Veterans Claims applies a ``clearly 
     erroneous'' standard of review to findings of fact made

[[Page 22917]]

     by the Board of Veterans' Appeals (``BVA''). The ``clearly 
     erroneous'' standard has been defined as requiring CAVC to 
     uphold BVA findings of fact if the findings are supported by 
     ``a plausible basis in the record . . . even if [CAVC] might 
     not have reached the same factual determinations.'' Wensch v. 
     Principi, 15 Vet. App. 362, 366-68 (2001). The recent U.S. 
     Court of Appeals for the Federal Circuit decision of Hensley 
     v. West, 212 F.3d 1255 (Fed. Cir. 2000) emphasized that CAVC 
     should perform only limited, deferential review of BVA 
     decisions, and stated that BVA fact-finding ``is entitled on 
     review to substantial deference.'' Id. at 1263.
       Section 5107(b) of title 38, United States Code, provides 
     that VA must find for the claimant when, in considering the 
     evidence of record, there is an approximate balance of 
     positive and negative evidence regarding any material issue 
     including the ultimate merits of the claim. This ``benefit of 
     the doubt'' standard applicable to proceedings before VA is 
     unique in administrative law. Under the benefit of the doubt 
     rule, unless the preponderance of the evidence is against the 
     claimant, the claim is granted. Gilbert v. Derwinski, 1 Vet. 
     App. 49 (1990) and Forshey v. Principi, 284 F.3d 1335 (Fed. 
     Cir. 2002).

                              Senate bill

       Section 501 of S. 2237 would amend section 7261(a)(4) of 
     title 38 to change the standard of review CAVC applies to BVA 
     findings of fact from ``clearly erroneous'' to ``unsupported 
     by substantial evidence.'' Section 502 would also cross-
     reference section 5107(b) in order to emphasize that the 
     Secretary's application of the ``benefit of the doubt'' to an 
     appellant's claim would be considered by CAVC on appeal.

                               House bill

       The House Bills contain no comparable provision.

                          Compromise agreement

       Section 401 of the Compromise Agreement follows the Senate 
     language with the following amendments.
       The Compromise Agreement would modify the standard of 
     review in the Senate bill in subsection (a) by deleting the 
     change to a ``substantial evidence'' standard. It would 
     modify the requirements of the review the Court must perform 
     when it is making determinations under section 7261(a) of 
     title 38, United States Code. Since the Secretary is 
     precluded from seeking judicial review of decisions of the 
     Board of Veterans Appeals, the addition of the words 
     ``adverse to the claimant'' in subsection (a) is intended to 
     clarify that findings of fact favorable to the claimant may 
     not be reviewed by the Court. Further, the addition of the 
     words ``or reverse'' after ``and set aside'' is intended to 
     emphasize that the Committees expect the Court to reverse 
     clearly erroneous findings when appropriate, rather than 
     remand the case.
       New subsection (b) would maintain language from the Senate 
     bill that would require the Court to examine the record of 
     proceedings before the Secretary and BVA and the special 
     emphasis during the judicial process on the benefit of the 
     doubt provisions of section 5107 (b) as it makes findings of 
     fact in reviewing BVA decisions. This would not alter the 
     formula of the standard of review on the Court, with the 
     uncertainty of interpretation of its application that would 
     accompany such a change. The combination of these changes is 
     intended to provide for more searching appellate review of 
     BVA decisions, and thus give full force to the ``benefit of 
     doubt'' provision.
       The Compromise Agreement would also modify the effective 
     date of this provision to apply to cases that have not been 
     decided prior to the enactment of this Act. This provision 
     would not apply to cases in which a decision has been made, 
     but are not final because the time to request panel review or 
     to appeal to the U.S. Court of Appeals for the Federal 
     Circuit (``Federal Circuit'') has not expired.


 REVIEW BY COURT OF APPEALS FOR THE FEDERAL CIRCUIT OF DECISIONS OF LAW

                              Current law

       Under section 7292(a) of title 38, United States Code, the 
     Federal Circuit may only review CAVC decisions involving 
     questions of law ``with respect to the validity of any 
     statute or regulation.'' It does not explicitly have the 
     authority to hear appeals of CAVC decisions that are not 
     clearly legal interpretations of statutes or regulations.

                              Senate bill

       Section 502 of S. 2237 would amend sections 7292(a) and (c) 
     of title 38, United States Code, to specifically provide for 
     appellate review of a CAVC decision on any rule of law.

                               House bill

       The House Bills contain no comparable provision.

                          Compromise agreement

       Section 402 of the Compromise Agreement follows the Senate 
     language.


 AUTHORITY OF COURT OF APPEALS FOR VETERANS CLAIMS TO AWARD FEES UNDER 
       EQUAL ACCESS TO JUSTICE ACT TO NON-ATTORNEY PRACTITIONERS

                              Current law

       Currently, section 2412(d) of title 28, United States Code, 
     the Equal Access to Justice Act (``EAJA''), shifts the burden 
     of attorney fees from the citizen to the government in cases 
     where the government's litigation position is not 
     substantially justified and the citizen qualifies under 
     certain income and asset criteria. Qualified non-attorneys 
     admitted to practice before the CAVC may only receive fees if 
     the EAJA application is signed by an attorney.

                              Senate bill

       Section 503 of S. 2237 would allow qualified non-attorneys 
     admitted to practice before the CAVC to be awarded fees under 
     EAJA for representation provided to VA claimants without the 
     requirement that an attorney sign the EAJA application.

                               House bill

       The House Bills contain no comparable provision.

                          Compromise agreement

       Section 403 of the Compromise Agreement follows the Senate 
     language.
       The Committees expect that in determining the amount of 
     reasonable fees payable to non-attorney practitioners, the 
     Court will apply the usual rules applicable to fees for the 
     work of other non-attorneys such as paralegals and law 
     students based upon prevailing market rates for the kind and 
     quality of the services furnished. 28 U.S.C. 2412 (d) (2)(A). 
     See, Sandoval v. Brown, 9 Vet. App. 177, 181 (1996).

                   LEGISLATIVE PROVISIONS NOT ADOPTED


                      ARLINGTON NATIONAL CEMETERY

                              Current law

       Eligibility for burial at Arlington National Cemetery is 
     governed by federal regulations at section 553.15 of title 
     32, Code of Federal Regulations. The following categories of 
     persons are eligible for in-ground burial: active duty 
     members of the Armed Forces, except those members serving on 
     active duty for training; retired members of the Armed Forces 
     who have served on active duty, are on a retired list and are 
     entitled to receive retirement pay; former members of the 
     Armed Forces discharged for disability before October 1, 
     1949, who served on active duty and would have been eligible 
     for retirement under 10 U.S.C. 1202 had the statute been in 
     effect on the date of separation; honorably discharged 
     members of the Armed Forces awarded the Medal of Honor, 
     Distinguished Service Cross, Air Force Cross or Navy Cross, 
     Distinguished Service Medal, Silver Star, or Purple Heart; 
     former prisoners of war who served honorably and who died on 
     or after November 30, 1993; provided they were honorably 
     discharged from the Armed Forces, elected federal officials 
     (the President, Vice President, and Members of Congress), 
     federal cabinet secretaries and deputies, agency directors 
     and certain other high federal officials (level I and II 
     executives), Supreme Court Justices, and chiefs of certain 
     diplomatic missions; the spouse, widow or widower, minor 
     child (under 21 years of age) and, at the discretion of the 
     Secretary of the Army, certain unmarried adult children, and 
     certain surviving spouses.

                               House bill

       H.R. 4940 would codify eligibility criteria for in-ground 
     burial at Arlington National Cemetery: members of the Armed 
     Forces who die on active duty; retired members of the Armed 
     Forces, including reservists who served on active duty; 
     members or former members of a reserve component who, but for 
     age, would have been eligible for retired pay; members of a 
     reserve component who die in the performance of duty while on 
     active duty training or inactive duty training; former 
     members of the Armed Forces who have been awarded the Medal 
     of Honor, Distinguished Service Cross (Air Force Cross or 
     Navy Cross), Distinguished Service Medal, Silver Star, or 
     Purple Heart; former prisoners of war who die on or after 
     November 30, 1993; the President or any former President; 
     members of the Guard or Reserves who served on active duty, 
     who are eligible for retirement, but who have not yet 
     retired; the spouse, surviving spouse, minor child and at the 
     discretion of the Superintendent of Arlington, certain 
     unmarried adult children. Veterans who do not meet these 
     requirements might qualify for the placement of their 
     cremated remains in Arlington's columbarium.
       H.R. 4940 would also provide the President the authority to 
     grant a waiver for burial at Arlington in the case of an 
     individual not otherwise eligible for burial under the 
     criteria outlined above but whose acts, service, or 
     contributions to the Armed Forces were so extraordinary as to 
     justify burial at Arlington. The President would be allowed 
     to delegate the waiver authority only to the Secretary of the 
     Army.
       H.R. 4940 would codify existing regulatory eligibility for 
     interment of cremated remains in the columbarium at Arlington 
     (generally, this includes all veterans with honorable service 
     and their dependents), clarify that only memorials honoring 
     military service may be placed at Arlington and set a 25-year 
     waiting period for such memorials, and clarify that in the 
     case of individuals buried in Arlington before the date of 
     enactment, the surviving spouse is deemed to be eligible if 
     buried in the same gravesite.

                              Senate bill

       The Senate Bill contains no comparable provision.

[[Page 22918]]




 INCREASE OF VETERANS' MORTGAGE LIFE INSURANCE (``VMLI'') COVERAGE TO 
                                $150,000

                              Current law

       Section 2106(b) of title 38, United States Code, provides 
     that VMLI may not exceed $90,000.

                               House bill

       Section 5(a) of H.R. 4085 would increase the maximum amount 
     of coverage available under Veterans' Mortgage Life Insurance 
     from $90,000 to $150,000. This would increase the amount of 
     the outstanding mortgage, which would be payable if the 
     veteran were to die before the mortgage is paid in full.

                              Senate bill

       The Senate Bill contains no comparable provision.


UNIFORM HOME LOAN GUARANTY FEES FOR QUALIFYING MEMBERS OF THE SELECTED 
                    RESERVE AND ACTIVE DUTY VETERANS

                              Current law

       Section 3729(b) of title 38, United States Code, provides 
     the amounts in fees to be collected from each person 
     participating in VA's Home Loan Guaranty Program.
       Currently, members of the Selected Reserve pay a 0.75 
     percent higher funding fee under the home loan program than 
     other eligible veterans.

                               House bill

       Section 4 of H.R. 4085 would amend the Loan Fee Table in 
     section 3729(b) of title 38, United States Code, to provide 
     for uniformity in the funding fees charged to members of the 
     Selected Reserve and active duty veterans for VA home loans. 
     The fee would be reduced for the period beginning on October 
     1, 2002, and ending on September 30, 2005.

                              Senate bill

       The Senate Bill contains no comparable provision.


    PROHIBIT ASSIGNMENT OF MONTHLY VETERANS BENEFITS AND CREATE AN 
 EDUCATION AND OUTREACH CAMPAIGN ABOUT FINANCIAL SERVICES AVAILABLE TO 
                                VETERANS

                              Current law

       Section 5301 of title 38, United States Code, currently 
     prohibits the assignment or attachment of a veteran's 
     disability compensation or pension benefits. In recent years, 
     private companies have offered contracts to veterans that 
     exchange up-front lump sums for future benefits.

                              Senate bill

       Section 105 of S. 2237 would clarify the applicability of 
     the prohibition on assignment of veterans benefits through 
     agreements regarding future receipt of compensation, pension, 
     or dependency and indemnity compensation. This provision 
     would make violation of this prohibition punishable by a fine 
     and up to one year in jail. This provision would also require 
     VA to create a five-year education and outreach campaign to 
     inform veterans about available financial services.

                               House bill

       The House Bills contain no comparable provision.


CLARIFICATION OF RETROACTIVE APPLICATION OF PROVISIONS OF THE VETERANS 
                         CLAIMS ASSISTANCE ACT

                              Current law

       Public Law 106-475, the Veterans Claims Assistance Act of 
     2000 (``VCAA''), restored and enhanced VA's duty to assist 
     claimants in developing their claims for veterans benefits. 
     Specifically, section 3(a) of the VCAA requires VA to take 
     certain steps to assist claimants.
       Two recent decisions by the U.S. Court of Appeals for the 
     Federal Circuit have found that the provisions in the VCAA 
     pertaining to VA's duty to assist cannot be applied 
     retroactively to claims pending at the time of its enactment. 
     In Dyment v. Principi, 287 F.3d 1377 (Fed. Cir. 2002), the 
     Federal Circuit stated: ``The Supreme Court has held that a 
     federal statute will not be given retroactive effect unless 
     Congress has made its contrary intention clear. There is 
     nothing in the VCAA to suggest that section 3(a) was intended 
     to applied [sic] retroactively.'' In Bernklau v. Principi, 
     291 F.3d 795, 806 (Fed. Cir. 2002), the Court again 
     concluded: ``[S]ection 3(a) of the VCAA does not apply 
     retroactively to require that proceedings that were complete 
     before the Department of Veterans Affairs and were on appeal 
     to the Court of Appeals for Veterans Claims or this court be 
     remanded for readjudication under the new statute.''

                              Senate bill

       Section 504 of S. 2237 would apply section 3 of VCAA 
     retroactively to cases that were ongoing either at various 
     adjudication levels within VA or pending at the applicable 
     Federal courts prior to the date of VCAA's enactment. Section 
     505 of the Senate Bill would provide for claims decided 
     between the handing down of the Dyment case and enactment of 
     this provision to receive the full notice, assistance, and 
     protection afforded under the VCAA.

                               House bill

       The House Bills contain no comparable provision.

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