[Congressional Record (Bound Edition), Volume 149 (2003), Part 19]
[Senate]
[Pages 26754-26761]
[From the U.S. Government Publishing Office, www.gpo.gov]




              VETERANS' BENEFITS ENHANCEMENTS ACT OF 2003

  Mr. McCONNELL. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of calendar item No. 316, S. 
1132.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 1132) to amend title 38, United States Code, to 
     improve and enhance certain benefits for survivors of 
     veterans, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Veterans' Affairs, with 
an amendment to strike all after the enacting clause and inserting in 
lieu thereof the following:

       (Strike the part shown in black brackets and insert the 
     part shown in italic.)

                                S. 1132

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

     [SECTION 1. SHORT TITLE.

       [This Act may be cited as the ``Veterans' Survivors 
     Benefits Enhancements Act of 2003''.

     [SEC. 2. INCREASE IN RATES OF SURVIVORS' AND DEPENDENTS' 
                   EDUCATIONAL ASSISTANCE.

       [(a) Survivors' and Dependents' Educational Assistance.--
     Section 3532 of title 38, United States Code, is amended--
       [(1) in subsection (a)--
       [(A) in paragraph (1), by striking ``at the monthly rate 
     of'' and all that follows and inserting ``at the monthly rate 
     of $985 for full-time, $740 for three-quarter-time, or $492 
     for half-time pursuit.''; and
       [(B) in paragraph (2), by striking ``at the rate of'' and 
     all that follows and inserting ``at the rate of the lesser 
     of--

[[Page 26755]]

       [``(A) the established charges for tuition and fees that 
     the educational institution involved requires similarly 
     circumstanced nonveterans enrolled in the same program to 
     pay; or
       [``(B) $985 per month for a full-time course.'';
       [(2) in subsection (b), by striking ``$670'' and inserting 
     ``$985''; and
       [(3) in subsection (c)(2), by striking ``shall be'' and all 
     that follows and inserting ``shall be $795 for full-time, 
     $596 for three-quarter-time, or $398 for half-time 
     pursuit.''.
       [(b) Correspondence Courses.--Section 3534(b) of that title 
     is amended by striking ``$670'' and inserting ``$985''.
       [(c) Special Restorative Training.--Section 3542(a) of that 
     title is amended--
       [(1) by striking ``$670'' and inserting ``$985''; and
       [(2) by striking ``$210'' each place it appears and 
     inserting ``$307''.
       [(d) Apprenticeship Training.--Section 3687(b)(2) of that 
     title is amended by striking ``shall be $488 for the first 
     six months'' and all that follows and inserting ``shall be 
     $717 for the first six months, $536 for the second six 
     months, $356 for the third six months, and $179 for the 
     fourth and any succeeding six-month period of training.''.
       [(e) Effective Date.--(1) The amendments made by this 
     section shall take effect on October 1, 2003, and shall apply 
     with respect to educational assistance allowances payable 
     under chapter 35 and section 3687(b)(2) of title 38, United 
     States Code, for months beginning on or after that date.
       [(2) No adjustment in rates of monthly training allowances 
     shall be made under section 3687(d) of title 38, United 
     States Code, for fiscal year 2004.

     [SEC. 3. MODIFICATION OF DURATION OF EDUCATIONAL ASSISTANCE.

       [Section 3511(a)(1) of title 38, United States Code, is 
     amended by striking ``45 months'' and all that follows and 
     inserting ``45 months, or 36 months in the case of a person 
     who first files a claim for educational assistance under this 
     chapter after the date of the enactment of the Veterans' 
     Survivors Benefits Enhancements Act of 2003, or the 
     equivalent thereof in part-time training.''.

     [SEC. 4. ADDITIONAL DEPENDENCY AND INDEMNITY COMPENSATION FOR 
                   SURVIVING SPOUSES WITH DEPENDENT CHILDREN.

       [(a) Additional Dependency and Indemnity Compensation.--
     Section 1311 of title 38, United States Code, is amended by 
     adding at the end the following new subsection:
       [``(e)(1) Subject to paragraphs (2) and (3), if there is a 
     surviving spouse with one or more children below the age of 
     eighteen, the dependency and indemnity compensation paid 
     monthly to the surviving spouse shall be increased by $250, 
     regardless of the number of such children.
       [``(2) Dependency and indemnity compensation shall be 
     increased for a month under this subsection only for months 
     occurring during the five-year period beginning on the date 
     of death of the veteran on which such dependency and 
     indemnity compensation is based.
       [``(3) The increase in dependency and indemnity 
     compensation of a surviving spouse under this subsection 
     shall cease beginning with the first month commencing after 
     the month in which all children of the surviving spouse have 
     attained the age of eighteen.
       [``(4) Dependency and indemnity compensation under this 
     subsection is in addition to any other dependency and 
     indemnity compensation payable by law.''.
       [(b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the enactment of this Act.

     [SEC. 5. ELIGIBILITY OF SURVIVING SPOUSES WHO REMARRY FOR 
                   BURIAL IN NATIONAL CEMETERIES.

       [(a) In General.--Section 2402(5) of title 38, United 
     States Code, is amended by striking ``(which for purposes of 
     this chapter includes an unremarried surviving spouse who had 
     a subsequent remarriage which was terminated by death or 
     divorce)'' and inserting ``(which for purposes of this 
     chapter includes a surviving spouse who had a subsequent 
     remarriage)''.
       [(b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to deaths occurring on or after 
     January 1, 2000.

     [SEC. 6. BENEFIT FOR CHILDREN WITH SPINA BIFIDA OF VETERANS 
                   OF CERTAIN SERVICE IN KOREA.

       [(a) In General.--Chapter 18 of title 38, United States 
     Code, is amended--
       [(1) by redesignating subchapter III, and sections 1821, 
     1822, 1823, and 1824, as subchapter IV, and sections 1831, 
     1832, 1833, and 1834, respectively; and
       [(2) by inserting after subchapter II the following new 
     subchapter III:

[``SUBCHAPTER III--CHILDREN OF CERTAIN KOREA SERVICE VETERANS BORN WITH 
                              SPINA BIFIDA

     [``Sec. 1821. Benefits for children of certain Korea service 
       veterans born with spina bifida

       [``(a) Benefits Authorized.--The Secretary may provide to 
     any child of a veteran of covered service in Korea who is 
     suffering from spina bifida the health care, vocational 
     training and rehabilitation, and monetary allowance required 
     to be paid to a child of a Vietnam veteran who is suffering 
     from spina bifida under subchapter I of this chapter as if 
     such child of a veteran of covered service in Korea were a 
     child of a Vietnam veteran who is suffering from spina bifida 
     under such subchapter I.
       [``(b) Spina Bifida Conditions Covered.--This section 
     applies with respect to all forms and manifestations of spina 
     bifida, except spina bifida occulta.
       [``(c) Veteran of Covered Service in Korea.--For purposes 
     of this section, a veteran of covered service in Korea is any 
     individual, without regard to the characterization of that 
     individual's service, who--
       [``(1) served in the active military, naval, or air service 
     in or near the Korean demilitarized zone (DMZ), as determined 
     by the Secretary in consultation with the Secretary of 
     Defense, during the period beginning on January 1, 1967, and 
     ending on December 31, 1969; and
       [``(2) is determined by the Secretary, in consultation with 
     the Secretary of Defense, to have been exposed to a herbicide 
     agent during such service in or near the Korean demilitarized 
     zone.
       [``(d) Herbicide Agent.--For purposes of this section, the 
     term `herbicide agent' means a chemical in a herbicide used 
     in support of United States and allied military operations in 
     or near the Korean demilitarized zone, as determined by the 
     Secretary in consultation with the Secretary of Defense, 
     during the period beginning on January 1, 1967, and ending on 
     December 31, 1969.''.
       [(b) Child Defined.--Section 1831 of that title, as 
     redesignated by subsection (a), is further amended by 
     striking paragraph (1) and inserting the following new 
     paragraph (1):
       [``(1) The term `child' means the following:
       [``(A) For purposes of subchapters I and II of this 
     chapter, an individual, regardless of age or marital status, 
     who--
       [``(i) is the natural child of a Vietnam veteran; and
       [``(ii) was conceived after the date on which that veteran 
     first entered the Republic of Vietnam during the Vietnam era.
       [``(B) For purposes of subchapter III of this chapter, an 
     individual, regardless of age or marital status, who--
       [``(i) is the natural child of a veteran of covered service 
     in Korea (as determined for purposes of section 1821 of this 
     title); and
       [``(ii) was conceived after the date on which that veteran 
     first entered service described in subsection (c) of that 
     section.''.
       [(c) Nonduplication of Benefits.--Section 1834(a) of that 
     title, as redesignated by subsection (a), is further amended 
     by adding at the end the following new sentence: ``In the 
     case of a child eligible for benefits under subchapter I or 
     II of this chapter who is also eligible for benefits under 
     subchapter III of this chapter, a monetary allowance shall be 
     paid under the subchapter of this chapter elected by the 
     child.''.
       [(d) Conforming Amendment.--(1) Section 1811(1)(A) of that 
     title is amended by striking ``section 1821(1)'' and 
     inserting ``section 1831(1)''.
       [(2) The heading for chapter 18 of that title is amended to 
     read as follows:

  ``CHAPTER 18--BENEFITS FOR CHILDREN OF VIETNAM VETERANS AND CERTAIN 
                           OTHER VETERANS''.

       [(e) Clerical Amendments.--(1) The table of sections at the 
     beginning of chapter 18 of that title is amended by striking 
     the items relating to subchapter III and inserting the 
     following new items:

[``SUBCHAPTER III--CHILDREN OF CERTAIN KOREA SERVICE VETERANS BORN WITH 
                              SPINA BIFIDA

[``1821. Benefits for children of certain Korea service veterans born 
              with spina bifida.

                  [``SUBCHAPTER IV--GENERAL PROVISIONS

[``1831. Definitions.
[``1832. Applicability of certain administrative provisions.
[``1833. Treatment of receipt of monetary allowance and other benefits.
[``1834. Nonduplication of benefits.''.
       [(2) The table of chapters at the beginning of title 38, 
     United States Code, and at the beginning of part II of such 
     title, are each amended by striking the item relating to 
     chapter 18 and inserting the following new item:

[``18. Chapter 18--Benefits for Children of Vietnam Veterans and 
    Certain Other Veterans.................................1802''.]....

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Veterans' 
     Benefits Enhancements Act of 2003''.
       (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--SURVIVOR BENEFITS

Sec. 101. Benefits for children with spina bifida of veterans of 
              certain service in Korea.
Sec. 102. Alternative beneficiaries for National Service Life Insurance 
              and United States Government Life Insurance.

[[Page 26756]]

Sec. 103. Applicability to certain members of the National Guard of 
              authority for extension of eligibility for survivors' and 
              dependents' educational assistance.
Sec. 104. Increase in rates of survivors' and dependents' educational 
              assistance.
Sec. 105. Repeal of two-year limitation on payment of accrued benefits 
              at death.

                       TITLE II--BURIAL BENEFITS

Sec. 201. Burial plot allowance.
Sec. 202. Eligibility of surviving spouses who remarry for burial in 
              national cemeteries.
Sec. 203. Permanent authority for State cemetery grants program.
Sec. 204. Provision of markers for privately marked graves.

                        TITLE III--OTHER MATTERS

               Subtitle A--Miscellaneous Benefits Matters

Sec. 301. Two-year extension of round-down requirement for compensation 
              cost-of-living adjustments.
Sec. 302. Presumptions of service-connection relating to diseases and 
              disabilities of former prisoners of war.
Sec. 303. Repeal of requirement for minimum period of internment of 
              prisoners of war for dental care.
Sec. 304. Rounding down of certain cost-of-living adjustments on 
              education assistance.
Sec. 305. Termination of education loan program.
Sec. 306. Termination of authority to guarantee loans to purchase 
              manufactured homes and lots.
Sec. 307. Increase in loan fee for subsequent loans closed before 
              October 1, 2011.
Sec. 308. Reinstatement of minimum requirements for sale of vendee 
              loans.
Sec. 309. Operation of Native American Veteran Housing Loan Program.
Sec. 310. Time limitations on receipt of claim information pursuant to 
              requests of Department of Veterans Affairs.
Sec. 311. Clarification of applicability of prohibition on assignment 
              of veterans benefits to agreements requiring payment of 
              future receipt of benefits.
Sec. 312. Three-year extension of income verification authority.
Sec. 313. Forfeiture of benefits for subversive activities.
Sec. 314. Clarification of notice of disagreement for appellate review 
              of Department of Veterans Affairs activities.

              Subtitle B--Benefits for Philippine Veterans

Sec. 321. Rate of payment of benefits for certain Filipino veterans and 
              their survivors residing in the United States.
Sec. 322. Burial benefits for new Philippine Scouts residing in the 
              United States.
Sec. 323. Extension of authority to operate regional office in the 
              Philippines.

              Subtitle C--Exposure to Hazardous Substances

Sec. 331. Radiation Dose Reconstruction Program of Department of 
              Defense.
Sec. 332. Study on disposition of Air Force Health Study.
Sec. 333. Funding of Medical Follow-Up Agency of Institute of Medicine 
              of National Academy of Sciences for epidemiological 
              research on members of the Armed Forces and veterans.

                       Subtitle D--Other Matters

Sec. 341. Four-year extension of Advisory Committee on Minority 
              Veterans.
Sec. 342. Veterans' Advisory Committee on Education.
Sec. 343. Temporary authority for performance of medical disabilities 
              examinations by contract physicians.
Sec. 344. Technical amendment.

     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--SURVIVOR BENEFITS

     SEC. 101. BENEFITS FOR CHILDREN WITH SPINA BIFIDA OF VETERANS 
                   OF CERTAIN SERVICE IN KOREA.

       (a) In General.--Chapter 18 is amended--
       (1) by redesignating subchapter III, and sections 1821, 
     1822, 1823, and 1824, as subchapter IV, and sections 1831, 
     1832, 1833, and 1834, respectively; and
       (2) by inserting after subchapter II the following new 
     subchapter III:

``SUBCHAPTER III--CHILDREN OF CERTAIN KOREA SERVICE VETERANS BORN WITH 
                              SPINA BIFIDA

     ``Sec. 1821. Benefits for children of certain Korea service 
       veterans born with spina bifida

       ``(a) Benefits Authorized.--The Secretary may provide to 
     any child of a veteran of covered service in Korea who is 
     suffering from spina bifida the health care, vocational 
     training and rehabilitation, and monetary allowance required 
     to be paid to a child of a Vietnam veteran who is suffering 
     from spina bifida under subchapter I of this chapter as if 
     such child of a veteran of covered service in Korea were a 
     child of a Vietnam veteran who is suffering from spina bifida 
     under such subchapter.
       ``(b) Spina Bifida Conditions Covered.--This section 
     applies with respect to all forms and manifestations of spina 
     bifida, except spina bifida occulta.
       ``(c) Veteran of Covered Service in Korea.--For purposes of 
     this section, a veteran of covered service in Korea is any 
     individual, without regard to the characterization of that 
     individual's service, who--
       ``(1) served in the active military, naval, or air service 
     in or near the Korean demilitarized zone (DMZ), as determined 
     by the Secretary in consultation with the Secretary of 
     Defense, during the period beginning on January 1, 1967, and 
     ending on December 31, 1969; and
       ``(2) is determined by the Secretary, in consultation with 
     the Secretary of Defense, to have been exposed to a herbicide 
     agent during such service in or near the Korean demilitarized 
     zone.
       ``(d) Herbicide Agent.--For purposes of this section, the 
     term `herbicide agent' means a chemical in a herbicide used 
     in support of United States and allied military operations in 
     or near the Korean demilitarized zone, as determined by the 
     Secretary in consultation with the Secretary of Defense, 
     during the period beginning on January 1, 1967, and ending on 
     December 31, 1969.''.
       (b) Child Defined.--Section 1831, as redesignated by 
     subsection (a) of this section, is further amended by 
     striking paragraph (1) and inserting the following new 
     paragraph (1):
       ``(1) The term `child' means the following:
       ``(A) For purposes of subchapters I and II of this chapter, 
     an individual, regardless of age or marital status, who--
       ``(i) is the natural child of a Vietnam veteran; and
       ``(ii) was conceived after the date on which that veteran 
     first entered the Republic of Vietnam during the Vietnam era.
       ``(B) For purposes of subchapter III of this chapter, an 
     individual, regardless of age or marital status, who--
       ``(i) is the natural child of a veteran of covered service 
     in Korea (as determined for purposes of section 1821 of this 
     title); and
       ``(ii) was conceived after the date on which that veteran 
     first entered service described in subsection (c) of that 
     section.''.
       (c) Nonduplication of Benefits.--Section 1834(a), as 
     redesignated by subsection (a) of this section, is further 
     amended by adding at the end the following new sentence: ``In 
     the case of a child eligible for benefits under subchapter I 
     or II of this chapter who is also eligible for benefits under 
     subchapter III of this chapter, a monetary allowance shall be 
     paid under the subchapter of this chapter elected by the 
     child.''.
       (d) Conforming Amendments.--(1) Section 1811(1)(A) is 
     amended by striking ``section 1821(1)'' and inserting 
     ``section 1831(1)''.
       (2) The heading for chapter 18 is amended to read as 
     follows:

  ``CHAPTER 18--BENEFITS FOR CHILDREN OF VIETNAM VETERANS AND CERTAIN 
                           OTHER VETERANS''.

       (e) Clerical Amendments.--(1) The table of sections at the 
     beginning of chapter 18 is amended by striking the items 
     relating to subchapter III and inserting the following new 
     items:

``SUBCHAPTER III--CHILDREN OF CERTAIN KOREA SERVICE VETERANS BORN WITH 
                              SPINA BIFIDA

``1821. Benefits for children of certain Korea service veterans born 
              with spina bifida.

                  ``SUBCHAPTER IV--GENERAL PROVISIONS

``1831. Definitions.
``1832. Applicability of certain administrative provisions.
``1833. Treatment of receipt of monetary allowance and other benefits.
``1834. Nonduplication of benefits.''.
       (2) The table of chapters at the beginning of title 38, 
     United States Code, and at the beginning of part II, are each 
     amended by striking the item relating to chapter 18 and 
     inserting the following new item:

``18. Chapter 18--Benefits for Children of Vietnam Veterans and Certain 
    Other Veterans..........................................1802''.....

     SEC. 102. ALTERNATIVE BENEFICIARIES FOR NATIONAL SERVICE LIFE 
                   INSURANCE AND UNITED STATES GOVERNMENT LIFE 
                   INSURANCE.

       (a) National Service Life Insurance.--Section 1917 is 
     amended by adding at the end the following new subsection:
       ``(f)(1) Following the death of the insured and in a case 
     not covered by subsection (d)--
       ``(A) if the first beneficiary otherwise entitled to 
     payment of the insurance does not make a claim for such 
     payment within two years after the death of the insured, 
     payment may be made to another beneficiary designated by the 
     insured, in the order of precedence as designated by the 
     insured, as if the first beneficiary had predeceased the 
     insured; and
       ``(B) if, within four years after the death of the insured, 
     no claim has been filed by a person designated by the insured 
     as a beneficiary and the Secretary has not received any 
     notice in writing that any such claim will be made, payment 
     may (notwithstanding any other provision of law) be made to 
     such person as may in the judgment of the Secretary be 
     equitably entitled thereto.
       ``(2) Payment of insurance under paragraph (1) shall be a 
     bar to recovery by any other person.''.
       (b) United States Government Life Insurance.--Section 1952 
     is amended by adding at the end the following new subsection:
       ``(c)(1) Following the death of the insured and in a case 
     not covered by section 1950 of this title--

[[Page 26757]]

       ``(A) if the first beneficiary otherwise entitled to 
     payment of the insurance does not make a claim for such 
     payment within two years after the death of the insured, 
     payment may be made to another beneficiary designated by the 
     insured, in the order of precedence as designated by the 
     insured, as if the first beneficiary had predeceased the 
     insured; and
       ``(B) if, within four years after the death of the insured, 
     no claim has been filed by a person designated by the insured 
     as a beneficiary and the Secretary has not received any 
     notice in writing that any such claim will be made, payment 
     may (notwithstanding any other provision of law) be made to 
     such person as may in the judgment of the Secretary be 
     equitably entitled thereto.
       ``(2) Payment of insurance under paragraph (1) shall be a 
     bar to recovery by any other person.''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on October 1, 2004.
       (d) Transition Provision.--In the case of a person insured 
     under subchapter I or II of chapter 19 of title 38, United 
     States Code, who dies before the effective date of the 
     amendments made by subsections (a) and (b), as specified by 
     subsection (c), the two-year and four-year periods specified 
     in subsection (f)(1) of section 1917 of title 38, United 
     States Code, as added by subsection (a), and subsection 
     (c)(1) of section 1952 of such title, as added by subsection 
     (b), as applicable, shall for purposes of the applicable 
     subsection be treated as being the two-year and four-year 
     periods, respectively, beginning on the effective date of 
     such amendments, as so specified.

     SEC. 103. APPLICABILITY TO CERTAIN MEMBERS OF THE NATIONAL 
                   GUARD OF AUTHORITY FOR EXTENSION OF ELIGIBILITY 
                   FOR SURVIVORS' AND DEPENDENTS' EDUCATIONAL 
                   ASSISTANCE.

       (a) In General.--Section 3512(h) is amended by inserting 
     ``or is involuntarily ordered to full-time National Guard 
     duty under section 502(f) of title 32,'' after ``title 10,''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as of September 11, 2001.

     SEC. 104. INCREASE IN RATES OF SURVIVORS' AND DEPENDENTS' 
                   EDUCATIONAL ASSISTANCE.

       (a) Survivors' and Dependents' Educational Assistance.--
     Section 3532 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``at the monthly rate 
     of'' and all that follows and inserting ``at the monthly rate 
     of $788 for full-time, $592 for three-quarter-time, or $394 
     for half-time pursuit.''; and
       (B) in paragraph (2), by striking ``at the rate of'' and 
     all that follows and inserting ``at the rate of the lesser 
     of--
       ``(A) the established charges for tuition and fees that the 
     educational institution involved requires similarly 
     circumstanced nonveterans enrolled in the same program to 
     pay; or
       ``(B) $788 per month for a full-time course.'';
       (2) in subsection (b), by striking ``$670'' and inserting 
     ``$788''; and
       (3) in subsection (c)(2), by striking ``shall be'' and all 
     that follows and inserting ``shall be $636 for full-time, 
     $477 for three-quarter-time, or $319 for half-time 
     pursuit.''.
       (b) Correspondence Courses.--Section 3534(b) is amended by 
     striking ``$670'' and inserting ``$788''.
       (c) Special Restorative Training.--Section 3542(a) is 
     amended--
       (1) by striking ``$670'' and inserting ``$788''; and
       (2) by striking ``$210'' each place it appears and 
     inserting ``$247''.
       (d) Apprenticeship Training.--Section 3687(b)(2) is amended 
     by striking ``shall be $488 for the first six months'' and 
     all that follows and inserting ``shall be $574 for the first 
     six months, $429 for the second six months, $285 for the 
     third six months, and $144 for the fourth and any succeeding 
     six-month period of training.''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2004, and shall apply with 
     respect to educational assistance allowances payable under 
     chapter 35 and section 3687(b)(2) of title 38, United States 
     Code, for months beginning on or after that date.

     SEC. 105. REPEAL OF TWO-YEAR LIMITATION ON PAYMENT OF ACCRUED 
                   BENEFITS AT DEATH.

       (a) Repeal.--Section 5121(a) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``for a period not to exceed two years'';
       (2) in paragraph (4), by striking ``and'' at the end;
       (3) by redesignating paragraph (5) as paragraph (6); and
       (4) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5) Upon the death of a child claiming benefits under 
     chapter 18 of this title, to the surviving parents; and''.
       (b) Technical Amendment.--That section is further amended 
     in the matter preceding paragraph (1) by striking ``or 
     decisions,'' and inserting ``or decisions''.

                       TITLE II--BURIAL BENEFITS

     SEC. 201. BURIAL PLOT ALLOWANCE.

       (a) In General.--Section 2303(b) is amended--
       (1) in the matter preceding paragraph (1), by striking ``a 
     burial allowance under such section 2302, or under such 
     subsection, who was discharged from the active military, 
     naval, or air service for a disability incurred or aggravated 
     in line of duty, or who is a veteran of any war'' and 
     inserting ``burial in a national cemetery under section 2402 
     of this title''; and
       (2) in paragraph (2), by striking ``(other than a veteran 
     whose eligibility for benefits under this subsection is based 
     on being a veteran of any war)'' and inserting ``is eligible 
     for a burial allowance under section 2302 of this title or 
     under subsection (a) of this section, or was discharged from 
     the active military, naval, or air service for a disability 
     incurred or aggravated in line of duty, and such veteran''.
       (b) Conforming Amendment.--Section 2307 is amended in the 
     last sentence by striking ``and (b)'' and inserting ``and 
     (b)(2)''.

     SEC. 202. ELIGIBILITY OF SURVIVING SPOUSES WHO REMARRY FOR 
                   BURIAL IN NATIONAL CEMETERIES.

       (a) In General.--Section 2402(5) is amended by striking 
     ``(which for purposes of this chapter includes an unremarried 
     surviving spouse who had a subsequent remarriage which was 
     terminated by death or divorce)'' and inserting ``(which for 
     purposes of this chapter includes a surviving spouse who had 
     a subsequent remarriage)''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to deaths occurring on or after the 
     date of the enactment of this Act.

     SEC. 203. PERMANENT AUTHORITY FOR STATE CEMETERY GRANTS 
                   PROGRAM.

       (a) Permanent Authority.--Subsection (a) of section 2408 is 
     amended--
       (1) by striking ``(1)''; and
       (2) by striking paragraph (2).
       (b) Conforming Amendment.--Subsection (e) of such section 
     is amended by striking ``Sums appropriated under subsection 
     (a) of this section'' and inserting ``Amounts appropriated to 
     carry out this section''.

     SEC. 204. PROVISION OF MARKERS FOR PRIVATELY MARKED GRAVES.

       (a) In General.--Section 502(d) of the Veterans Education 
     and Benefits Expansion Act of 2001 (Public Law 107-103; 38 
     U.S.C. 2306 note) is amended by striking ``September 11, 
     2001'' and inserting ``November 1, 1990''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as if included in the enactment of section 
     502 of the Veterans Education and Benefits Expansion Act of 
     2001.

                        TITLE III--OTHER MATTERS

               Subtitle A--Miscellaneous Benefits Matters

     SEC. 301. TWO-YEAR EXTENSION OF ROUND-DOWN REQUIREMENT FOR 
                   COMPENSATION COST-OF-LIVING ADJUSTMENTS.

       Sections 1104(a) and 1303(a) are each amended by striking 
     ``2011'' and inserting ``2013''.

     SEC. 302. PRESUMPTIONS OF SERVICE-CONNECTION RELATING TO 
                   DISEASES AND DISABILITIES OF FORMER PRISONERS 
                   OF WAR.

       Subsection (b) of section 1112 is amended to read as 
     follows:
       ``(b)(1) For the purposes of section 1110 of this title and 
     subject to the provisions of section 1113 of this title, in 
     the case of a veteran who is a former prisoner of war--
       ``(A) a disease specified in paragraph (2) which became 
     manifest to a degree of 10 percent or more after active 
     military, naval, or air service shall be considered to have 
     been incurred in or aggravated by such service, 
     notwithstanding that there is no record of such disease 
     during the period of service; and
       ``(B) if the veteran was detained or interned as a prisoner 
     of war for not less than thirty days, a disease specified in 
     paragraph (3) which became manifest to a degree of 10 percent 
     or more after active military, naval, or air service shall be 
     considered to have been incurred in or aggravated by such 
     service, notwithstanding that there is no record of such 
     disease during the period of service.
       ``(2) The diseases specified in this paragraph are the 
     following:
       ``(A) Psychosis.
       ``(B) Any of the anxiety states.
       ``(C) Dysthymic disorder (or depressive neurosis).
       ``(D) Organic residuals of frostbite, if the Secretary 
     determines that the veteran was detained or interned in 
     climatic conditions consistent with the occurrence of 
     frostbite.
       ``(E) Post-traumatic osteoarthritis.
       ``(3) The diseases specified in this paragraph are the 
     following:
       ``(A) Avitaminosis.
       ``(B) Beriberi (including beriberi heart disease).
       ``(C) Chronic dysentery.
       ``(D) Helminthiasis.
       ``(E) Malnutrition (including optic atrophy associated with 
     malnutrition).
       ``(F) Pellagra.
       ``(G) Any other nutritional deficiency.
       ``(H) Cirrhosis of the liver.
       ``(I) Peripheral neuropathy except where directly related 
     to infectious causes.
       ``(J) Irritable bowel syndrome.
       ``(K) Peptic ulcer disease.''.

     SEC. 303. REPEAL OF REQUIREMENT FOR MINIMUM PERIOD OF 
                   INTERNMENT OF PRISONERS OF WAR FOR DENTAL CARE.

       Section 1712(a)(1)(F) is amended by striking ``and who was 
     detained or interned for a period of not less than 90 days''.

     SEC. 304. ROUNDING DOWN OF CERTAIN COST-OF-LIVING ADJUSTMENTS 
                   ON EDUCATION ASSISTANCE.

       (a) Basic Educational Assistance Under Montgomery GI 
     Bill.--Section 3015(h) is amended by inserting ``down'' after 
     ``rounded''.

[[Page 26758]]

       (b) Survivors' and Dependents' Educational Assistance.--
     Section 3564 is amended by inserting ``down'' after 
     ``rounded''.

     SEC. 305. TERMINATION OF EDUCATION LOAN PROGRAM.

       (a) Termination of Education Loan Program.--No loans shall 
     be made under subchapter III of chapter 36 of title 38, 
     United States Code, after the date of the enactment of this 
     Act.
       (b) Discharge of Liabilities.--Effective as of the date of 
     the transfer of funds under subsection (c)--
       (1) any liability on an education loan under subchapter III 
     of chapter 36 of title 38, United States Code, that is 
     outstanding as of such date shall be deemed discharged; and
       (2) the right of the United States to recover an 
     overpayment declared under section 3698(e)(1) of such title 
     that is outstanding as of such date shall be deemed waived.
       (c) Termination of Loan Fund.--(1) Effective as of the day 
     before the date of the repeal under this section of 
     subchapter III of chapter 36 of title 38, United States Code, 
     all monies in the revolving fund of the Treasury known as the 
     ``Department of Veterans Affairs Education Loan Fund'' shall 
     be transferred to the Department of Veterans Affairs 
     Readjustment Benefits Account, and the revolving fund shall 
     be closed.
       (2) Any monies transferred to the Department of Veterans 
     Affairs Readjustment Benefits Account under paragraph (1) 
     shall be merged with amounts in that account, and shall be 
     available for the same purposes, and subject to the same 
     conditions and limitations, as amounts in that account.
       (d) Use of Entitlement to Veterans Educational Assistance 
     for Education Loan Program.--Section 3462(a) is amended--
       (1) by striking paragraph (2); and
       (2) by redesignating paragraph (4) as paragraph (2).
       (e) Repeal of Education Loan Program.--Subchapter III of 
     chapter 36 is repealed.
       (f) Conforming Amendments.--(1) Section 3485(e)(1) is 
     amended by striking ``(other than an education loan under 
     subchapter III)''.
       (2) Section 3512 is amended by striking subsection (f).
       (g) Clerical Amendment.--The table of sections at the 
     beginning of chapter 36 is amended by striking the items 
     relating to subchapter III.
       (h) Effective Dates.--(1) The amendments made by subsection 
     (d) shall take effect on the date of the enactment of this 
     Act.
       (2) The amendments made by subsections (e), (f), and (g) 
     shall take effect 90 days after the date of the enactment of 
     this Act.

     SEC. 306. TERMINATION OF AUTHORITY TO GUARANTEE LOANS TO 
                   PURCHASE MANUFACTURED HOMES AND LOTS.

       Section 3712 is amended by adding at the end the following 
     new subsection:
       ``(m) The authority of the Secretary to guarantee loans 
     under this section shall expire on December 31, 2003.''.

     SEC. 307. INCREASE IN LOAN FEE FOR SUBSEQUENT LOANS CLOSED 
                   BEFORE OCTOBER 1, 2011.

       (a) Increase in Loan Fee.--The loan fee table in section 
     3729(b)(2) is amended in subparagraph (B)(i), relating to 
     subsequent loans described in section 3701(a) of title 38, 
     United States Code, to purchase or construct a dwelling with 
     0-down, or any other subsequent loan described in such 
     section (closed on or before October 1, 2011), by striking 
     ``3.00'' both places it appears and inserting ``3.50''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2004.

     SEC. 308. REINSTATEMENT OF MINIMUM REQUIREMENTS FOR SALE OF 
                   VENDEE LOANS.

       (a) In General.--Section 3733(a) is amended--
       (1) by striking paragraph (2) and redesignating paragraphs 
     (3), (4), (5), and (6) as paragraphs (2), (3), (4), and (5), 
     respectively; and
       (2) in subparagraph (B)(i) of paragraph (3), as so 
     redesignated, by striking ``paragraph (5) of this 
     subsection'' and inserting ``paragraph (4)''.
       (b) Increase in Maximum Percentage.--Section 3733(a)(1) is 
     amended--
       (1) by striking ``65 percent'' in the first sentence and 
     inserting ``85 percent''; and
       (2) by striking the second sentence.
       (c) Stylistic Amendments.--Section 3733 is further amended 
     by striking ``paragraph (1) of this subsection'' each place 
     it appears and inserting ``paragraph (1)''.

     SEC. 309. OPERATION OF NATIVE AMERICAN VETERAN HOUSING LOAN 
                   PROGRAM.

       (a) Restoration for Fiscal Year 2003 to Fiscal Year 2002 
     Level.--In carrying out the pilot program provided by 
     subchapter V of chapter 37 of title 38, United States Code, 
     under which the Secretary of Veterans Affairs is authorized 
     to make direct housing loans to Native American veterans, the 
     Secretary shall during fiscal year 2003 carry out that 
     program without regard to the proviso under the heading 
     ``Native American Veteran Housing Loan Program Account'' in 
     title I of the Departments of Veterans Affairs and Housing 
     and Urban Development, and Independent Agencies 
     Appropriations Act, 2003 (division K of Public Law 108-7; 117 
     Stat. 476), and such proviso shall be treated as being of no 
     force or effect.
       (b) Savings Provision.--Any action taken by the Secretary 
     of Veterans Affairs before the enactment of this Act that is 
     inconsistent with the proviso referred to in subsection (a) 
     is hereby ratified with respect to such inconsistency.

     SEC. 310. TIME LIMITATIONS ON RECEIPT OF CLAIM INFORMATION 
                   PURSUANT TO REQUESTS OF DEPARTMENT OF VETERANS 
                   AFFAIRS.

       (a) Information to Complete Claims Applications.--Section 
     5102 is amended by adding at the end the following new 
     subsection:
       ``(c) Time Limitation.--(1) If information that a claimant 
     and the claimant's representative, if any, are notified under 
     subsection (b) is necessary to complete an application is not 
     received by the Secretary within one year from the date of 
     such notification, no benefit may be paid or furnished by 
     reason of the claimant's application.
       ``(2) This subsection shall not apply to any application or 
     claim for Government life insurance benefits.''.
       (b) Construction of Limitation on Information to 
     Substantiate Claims.--Section 5103(b) is amended by adding at 
     the end the following new paragraph:
       ``(3) The limitation in paragraph (1) shall not be 
     construed to prohibit the Secretary from making a decision on 
     a claim before the expiration of the period referred to in 
     that subsection.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if enacted on November 9, 2000, 
     immediately after the enactment of the Veterans Claims 
     Assistance Act of 2000 (Public Law 106-475; 114 Stat. 2096).

     SEC. 311. CLARIFICATION OF APPLICABILITY OF PROHIBITION ON 
                   ASSIGNMENT OF VETERANS BENEFITS TO AGREEMENTS 
                   REQUIRING PAYMENT OF FUTURE RECEIPT OF 
                   BENEFITS.

       (a) In General.--Section 5301(a) is amended--
       (1) by inserting ``(1)'' after ``(a)'';
       (2) by designating the last sentence as paragraph (2) and 
     indenting such paragraph, as so designated, two ems from the 
     left margin; and
       (3) by adding at the end the following new paragraph:
       ``(3)(A) This subsection is intended to clarify that, in 
     any case where a beneficiary entitled to compensation, 
     pension, or dependency and indemnity compensation enters into 
     an agreement with another person under which agreement such 
     other person acquires for consideration the right to receive 
     payment of such compensation, pension, or dependency and 
     indemnity compensation, as the case may be, whether by 
     payment from the beneficiary to such other person, deposit 
     into an account from which such other person may make 
     withdrawals, or otherwise, such agreement shall be deemed to 
     be an assignment and is prohibited.
       ``(B) Notwithstanding subparagraph (A), nothing in this 
     subsection is intended to prohibit a loan to a beneficiary 
     under the terms of which the beneficiary may use some of the 
     benefits to repay the loan, so long as each of the periodic 
     payments made to repay the loan is separately and voluntarily 
     executed by the beneficiary at the time such periodic payment 
     is made.
       ``(C) Any agreement or arrangement for collateral for 
     security for an agreement that is prohibited under 
     subparagraph (A) is also prohibited and is void ab initio.''.
       (b) Effective Date.--Paragraph (3) of section 5301(a) of 
     title 38, United States Code (as added by subsection (a) of 
     this section), shall apply with respect to any agreement or 
     arrangement described in that paragraph that is entered into 
     on or after the date of the enactment of this Act.

     SEC. 312. THREE-YEAR EXTENSION OF INCOME VERIFICATION 
                   AUTHORITY.

       (a) In General.--Section 5317(g) is amended by striking 
     ``September 30, 2008'' and inserting ``September 30, 2011''.
       (b) Conforming Amendment.--Section 6103(l)(7)(D) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``September 30, 2008'' and inserting ``September 30, 2011''.

     SEC. 313. FORFEITURE OF BENEFITS FOR SUBVERSIVE ACTIVITIES.

       (a) Addition of Certain Offenses.--Section 6105(b)(2) is 
     amended by striking ``sections 792, 793, 794, 798, 2381, 
     2382, 2383, 2384, 2385, 2387, 2388, 2389, 2390, and chapter 
     105 of title 18'' and inserting ``sections 175, 229, 792, 
     793, 794, 798, 831, 1091, 2332a, 2332b, 2381, 2382, 2383, 
     2384, 2385, 2387, 2388, 2389, 2390, and chapter 105 of title 
     18''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to claims filed after the date of the enactment 
     of this Act.

     SEC. 314. CLARIFICATION OF NOTICE OF DISAGREEMENT FOR 
                   APPELLATE REVIEW OF DEPARTMENT OF VETERANS 
                   AFFAIRS ACTIVITIES.

       (a) Clarification.--Section 7105(b) is amended by adding at 
     the end the following new paragraph:
       ``(3) A document that meets the requirements of the second 
     sentence of paragraph (1) and the first sentence of paragraph 
     (2) shall be recognized as a notice of disagreement for 
     purposes of this section unless the Secretary finds that the 
     claimant has disavowed a desire for appellate review.''.
       (b) Effective Date.--(1) Except as specifically provided 
     otherwise, paragraph (3) of section 7105(b) of title 38, 
     United States Code (as added by subsection (a) of this 
     section), shall apply to any document--
       (A) filed under section 7105 of such title on or after the 
     date of the enactment of this Act; or
       (B) filed under section 7105 of such title before the date 
     of the enactment of this Act and not treated by the Secretary 
     of Veterans Affairs as a notice of disagreement pursuant to 
     section 20.201 of title 38, Code of Federal Regulations, as 
     of that date.
       (2) In the case of a document described in paragraph (3) of 
     this subsection, the Secretary shall, upon the request of the 
     claimant or the Secretary's own motion, order the document 
     treated as a notice of disagreement under section 7105 of 
     such title as if the document had

[[Page 26759]]

     not been rejected by the Secretary as a notice of 
     disagreement pursuant to section 20.201 of title 38, Code of 
     Federal Regulations.
       (3) A document described in this paragraph is a document 
     that--
       (A) was filed as a notice of disagreement under section 
     7105 of such title during the period beginning on March 15, 
     2002, and ending on the date of the enactment of this Act; 
     and
       (B) was rejected by the Secretary as a notice of 
     disagreement pursuant to section 20.201 of title 38, Code of 
     Federal Regulations.
       (4) A document may not be treated as a notice of 
     disagreement under paragraph (2) unless a request for such 
     treatment is filed by the claimant, or a motion is made by 
     the Secretary, not later than one year after the date of the 
     enactment of this Act.

              Subtitle B--Benefits for Philippine Veterans

     SEC. 321. RATE OF PAYMENT OF BENEFITS FOR CERTAIN FILIPINO 
                   VETERANS AND THEIR SURVIVORS RESIDING IN THE 
                   UNITED STATES.

       (a) Rate of Payment.--Section 107 is amended--
       (1) in the second sentence of subsection (b), by striking 
     ``Payments'' and inserting ``Except as provided in subsection 
     (c), payments''; and
       (2) in subsection (c)--
       (A) by inserting ``and subchapter II of chapter 13 (except 
     section 1312(a)) of this title'' after ``chapter 11 of this 
     title'';
       (B) by striking ``in subsection (a)'' and inserting ``in 
     subsection (a) or (b)''; and
       (C) by striking ``of subsection (a)'' and inserting ``of 
     the applicable subsection''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the date of the enactment of this Act 
     and shall apply to benefits paid for months beginning after 
     that date.

     SEC. 322. BURIAL BENEFITS FOR NEW PHILIPPINE SCOUTS RESIDING 
                   IN THE UNITED STATES.

       (a) Benefit Eligibility.--Section 107 is amended--
       (1) in subsection (b)(2)--
       (A) by striking ``and'' and inserting a comma; and
       (B) by inserting ``, 23, and 24 (to the extent provided for 
     in section 2402(8))'' after ``(except section 1312(a))'';
       (2) in the second sentence of subsection (b), as amended by 
     section 321 of this Act, by inserting ``or (d)'' after 
     ``subsection (c)'';
       (3) in subsection (d)(1), by inserting ``or (b), as 
     applicable,'' after ``subsection (a)''; and
       (4) in section (d)(2), by inserting ``or whose service is 
     described in subsection (b) and who dies after the date of 
     enactment of the Veterans' Benefits Enhancements Act of 
     2003,'' after ``November 1, 2000,''.
       (b) National Cemetery Interment.--Section 2402(8) is 
     amended by inserting ``or (b)'' after ``section 107(a)''.
       (c) 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.

     SEC. 323. EXTENSION OF AUTHORITY TO OPERATE REGIONAL OFFICE 
                   IN THE PHILIPPINES.

       Section 315(b) is amended by striking ``December 31, 2003'' 
     and inserting ``December 31, 2008''.

              Subtitle C--Exposure to Hazardous Substances

     SEC. 331. RADIATION DOSE RECONSTRUCTION PROGRAM OF DEPARTMENT 
                   OF DEFENSE.

       (a) Review of Mission, Procedures, and Administration.--(1) 
     The Secretary of Veterans Affairs and the Secretary of 
     Defense shall jointly conduct a review of the mission, 
     procedures, and administration of the Radiation Dose 
     Reconstruction Program of the Department of Defense.
       (2) In conducting the review under paragraph (1), the 
     Secretaries shall--
       (A) determine whether any additional actions are required 
     to ensure that the quality assurance and quality control 
     mechanisms of the Radiation Dose Reconstruction Program are 
     adequate and sufficient for purposes of the program; and
       (B) determine the actions that are required to ensure that 
     the mechanisms of the Radiation Dose Reconstruction Program 
     for communication and interaction with veterans are adequate 
     and sufficient for purposes of the program, including 
     mechanisms to permit veterans to review the assumptions 
     utilized in their dose reconstructions.
       (3) Not later than 90 days after the date of the enactment 
     of this Act, the Secretaries shall jointly submit to Congress 
     a report on the review under paragraph (1). The report shall 
     set forth--
       (A) the results of the review;
       (B) a plan for any actions determined to be required under 
     paragraph (2); and
       (C) such other recommendations for the improvement of the 
     mission, procedures, and administration of the Radiation Dose 
     Reconstruction Program as the Secretaries jointly consider 
     appropriate.
       (b) On-Going Review and Oversight.--The Secretaries shall 
     jointly take appropriate actions to ensure the on-going 
     independent review and oversight of the Radiation Dose 
     Reconstruction Program, including the establishment of the 
     advisory board required by subsection (c).
       (c) Advisory Board.--(1) In taking actions under subsection 
     (b), the Secretaries shall jointly appoint an advisory board 
     to provide review and oversight of the Radiation Dose 
     Reconstruction Program.
       (2) The advisory board under paragraph (1) shall be 
     composed of the following:
       (A) At least one expert in historical dose reconstruction 
     of the type conducted under the Radiation Dose Reconstruction 
     Program.
       (B) At least one expert in radiation health matters.
       (C) At least one expert in risk communications matters.
       (D) A representative of the Department of Veterans Affairs.
       (E) A representative of the Defense Threat Reduction 
     Agency.
       (F) At least three veterans, including at least one veteran 
     who is a member of an atomic veterans group.
       (3) The advisory board under paragraph (1) shall--
       (A) conduct periodic, random audits of dose reconstructions 
     under the Radiation Dose Reconstruction Program and of 
     decisions by the Department of Veterans Affairs on claims for 
     service connection of radiogenic diseases;
       (B) assist the Department of Veterans Affairs and the 
     Defense Threat Reduction Agency in communicating to veterans 
     information on the mission, procedures, and evidentiary 
     requirements of the Radiation Dose Reconstruction Program; 
     and
       (C) carry out such other activities with respect to the 
     review and oversight of the Radiation Dose Reconstruction 
     Program as the Secretaries shall jointly specify.
       (4) The advisory board under paragraph (1) may make such 
     recommendations on modifications in the mission or procedures 
     of the Radiation Dose Reconstruction Program as the advisory 
     board considers appropriate as a result of the audits 
     conducted under paragraph (3)(A).

     SEC. 332. STUDY ON DISPOSITION OF AIR FORCE HEALTH STUDY.

       (a) In General.--The Secretary of Veterans Affairs shall, 
     in accordance with this section, carry out a study to 
     determine the appropriate disposition of the Air Force Health 
     Study, an epidemiologic study of Air Force personnel who were 
     responsible for conducting aerial spray missions of 
     herbicides during the Vietnam era.
       (b) Study Through National Academy of Sciences.--Not later 
     than sixty days after the date of the enactment of this Act, 
     the Secretary shall seek to enter into an agreement with the 
     National Academy of Sciences, or another appropriate 
     scientific organization, to carry out the study required by 
     subsection (a).
       (c) Elements.--Under the study under subsection (a), the 
     National Academy of Sciences, or other appropriate scientific 
     organization, shall address the following:
       (1) The scientific merit of retaining and maintaining the 
     medical records, other study data, and laboratory specimens 
     collected in the course of the Air Force Health Study after 
     the currently-scheduled termination date of the study in 
     2006.
       (2) Whether or not any obstacles exist to retaining and 
     maintaining the medical records, other study data, and 
     laboratory specimens referred to in paragraph (1), including 
     privacy concerns.
       (3) The advisability of providing independent oversight of 
     the medical records, other study data, and laboratory 
     specimens referred to in paragraph (1), and of any further 
     study of such records, data, and specimens, and, if so, the 
     mechanism for providing such oversight.
       (4) The advisability of extending the Air Force Health 
     Study, including the potential value and relevance of 
     extending the study, the potential cost of extending the 
     study, and the Federal or non-Federal entity best suited to 
     continue the study if extended.
       (5) The advisability of making the laboratory specimens of 
     the Air Force Health Study available for independent 
     research, including the potential value and relevance of such 
     research, and the potential cost of such research.
       (d) Report.--Not later than 60 days after entering into an 
     agreement under subsection (b), the National Academy of 
     Sciences, or other appropriate scientific organization, shall 
     submit to the Secretary and Congress a report on the results 
     of the study under subsection (a). The report shall include 
     the results of the study, including the matters addressed 
     under subsection (c), and such other recommendations as the 
     Academy, or other appropriate scientific organization, 
     considers appropriate as a result of the study.

     SEC. 333. FUNDING OF MEDICAL FOLLOW-UP AGENCY OF INSTITUTE OF 
                   MEDICINE OF NATIONAL ACADEMY OF SCIENCES FOR 
                   EPIDEMIOLOGICAL RESEARCH ON MEMBERS OF THE 
                   ARMED FORCES AND VETERANS.

       (a) Funding by Department of Veterans Affairs.--(1) The 
     Secretary of Veterans Affairs shall make available to the 
     National Academy of Sciences in each of fiscal years 2004 
     through 2013, $250,000 for the Medical Follow-Up Agency of 
     the Institute of Medicine of the Academy for purposes of 
     epidemiological research on members of the Armed Forces and 
     veterans.
       (2) The Secretary of Veterans Affairs shall make available 
     amounts under paragraph (1) for a fiscal year from amounts 
     available for the Department of Veterans Affairs for that 
     fiscal year.
       (b) Funding by Department of Defense.--(1) The Secretary of 
     Defense shall make available to the National Academy of 
     Sciences in each of fiscal years 2004 through 2013, $250,000 
     for the Medical Follow-Up Agency for purposes of 
     epidemiological research on members of the Armed Forces and 
     veterans.
       (2) The Secretary of Defense shall make available amounts 
     under paragraph (1) for a fiscal year from amounts available 
     for the Department of Defense for that fiscal year.

[[Page 26760]]

       (c) Use of Funds.--The Medical Follow-Up Agency shall use 
     funds made available under subsections (a) and (b) for 
     epidemiological research on members of the Armed Forces and 
     veterans.
       (d) Supplement Not Supplant.--Amounts made available to the 
     Medical Follow-Up Agency under this section for a fiscal year 
     for the purposes referred to in subsection (c) are in 
     addition to any other amounts made available to the Agency 
     for that fiscal year for those purposes.

                       Subtitle D--Other Matters

     SEC. 341. FOUR-YEAR EXTENSION OF ADVISORY COMMITTEE ON 
                   MINORITY VETERANS.

       Section 544(e) is amended by striking ``December 31, 2003'' 
     and inserting ``December 31, 2007''.

     SEC. 342. VETERANS' ADVISORY COMMITTEE ON EDUCATION.

       (a) Membership.--Subsection (a) of section 3692 is amended 
     in the second sentence by inserting ``, to the maximum extent 
     practicable,'' after ``The committee shall also''.
       (b) Extension.--Subsection (c) of that section is amended 
     by striking ``December 31, 2003'' and inserting ``December 
     31, 2013''.
       (c) Technical Amendments.--That section is further 
     amended--
       (1) in subsections (a) and (b), by striking ``chapter 106'' 
     each place it appears and inserting ``chapter 1606''; and
       (2) in subsection (b), by striking ``chapter 30'' and 
     inserting ``chapters 30''.

     SEC. 343. TEMPORARY AUTHORITY FOR PERFORMANCE OF MEDICAL 
                   DISABILITIES EXAMINATIONS BY CONTRACT 
                   PHYSICIANS.

       (a) In General.--Notwithstanding the limitation in section 
     504(b) the Veterans' Benefits Improvements Act of 1996 
     (Public Law 104-275; 110 Stat. 3341; 38 U.S.C. 5101 note) and 
     using funds subject to appropriation (other than funds 
     available for compensation and pension), the Secretary of 
     Veterans Affairs may provide for the conduct of examinations 
     with respect to the medical disabilities of applicants for 
     benefits under laws administered by the Secretary by persons 
     other than Department of Veterans Affairs employees.
       (b) Performance by Contract.--Examinations under the 
     authority in subsection (a) shall be conducted pursuant to 
     contracts entered into and administered by the Under 
     Secretary for Benefits.
       (c) Expiration.--The authority in subsection (a) shall 
     expire on December 31, 2009. No examination may be carried 
     out under the authority in that subsection after that date.
       (d) Report.--Not later than four years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the utilization of the authority in subsection 
     (a), including an assessment of the effect of examinations 
     under that authority on the cost, timeliness, and 
     thoroughness of examinations with respect to the medical 
     disabilities of applicants for benefits under laws 
     administered by the Secretary.

     SEC. 344. TECHNICAL AMENDMENT.

       Section 1974(a)(5) is amended by striking ``Secretary of 
     Transportation'' and inserting ``Secretary of Homeland 
     Security''.


                        benefits buy-out schemes

  Mr. NELSON of Florida. Mr. President, would the Senator from Florida 
be willing to engage me in a colloquy?
  Mr. GRAHAM of Florida. I would be pleased to engage in a colloquy 
with my friend from Florida.
  Mr. NELSON of Florida. Mr. President, I have come to the floor today 
to speak about important language included in this year's veterans 
benefits bill that must be included in the final conference report. 
This language addresses a situation that I feel demands our immediate 
attention--the protection of our veterans and their benefits from the 
predatory lending practices of some unscrupulous businesses.
  Mr. President, over a year ago, a group of disabled veterans in 
Florida brought to my attention the issue of benefits buy-out schemes 
that target our most vulnerable disabled veterans. These scams offer to 
advance to a veteran a lump-sum amount of money for access to the 
veterans' future disability compensation often at outrageous interest 
rates of 30 percent or more.
  I thank the Veterans Affairs Committee and the distinguished 
chairman, Arlen Specter, and the ranking member, Senator Bob Graham, 
for their leadership in support of this effort. These Senators and 
their staffs have worked tirelessly to craft this language in a manner 
that will stop these scams without adversely affecting a veterans' 
ability to use credit.
  I respectfully request that the distinguished ranking member continue 
this effort and support this language during conference in the interest 
of our veterans and the protection of their benefits and pensions.
  Mr. GRAHAM of Florida. I would like to add my voice of support and 
commitment to this important language. I will work to ensure the final 
conference report includes this language. We can no longer wait to 
institute these important policies that will serve to protect our 
veterans from benefits buy-out schemes.
  Mr. NELSON of Florida. I would like to thank the distinguished 
ranking member for his efforts and I look forward to the final 
conference report on the veterans benefits bill.
  Mr. President, I wish to speak about important language included in 
this year's veterans benefits bill that must be included in the final 
conference report. This language addresses a situation that I feel 
demands our immediate attention--the protection of our veterans and 
their benefits from the predatory lending practices of some 
unscrupulous businesses.
  Over a year ago, a group of disabled veterans in Florida brought to 
my attention the issue of benefits buy-out schemes that target our most 
vulnerable disabled veterans. These scams offer to advance to a veteran 
a lump sum amount of money for access to the veterans' future 
disability compensation, often at outrageous interest rates of 30 
percent or more.
  In order to avoid Federal laws prohibiting veterans from assigning 
their benefits to another party, these scams require the veteran to 
open a joint account from which the lending company automatically 
withdraws the veterans benefits.
  We can all agree that a law preventing veterans from assigning their 
benefits to another individual should also bar this type of an 
arrangement--where money is directly withdrawn before the veteran can 
access their benefits or pension.
  Last May the National Consumer Law Center, NCLC, released a report 
about financial and commercial scams directed at our military, veterans 
and their families--this report included an examination of these 
veterans benefits buy-out schemes.
  The NCLC concluded that lump sum pension schemes are illegal under a 
variety of Federal and State truth in lending, usury or consumer laws, 
and that remedies exist, but require burdensome and costly court action 
on the part of the veteran.
  I was not surprised to see that they agree with my findings that the 
assignment of veterans benefits is indeed illegal under current law.
  But they also agree that due to a lack of clarity in the law and, 
therefore, the absence of any enforcement efforts, veterans are left 
open to unscrupulous exploitation and the loss of their benefits.
  The analysis and conclusion in the report by the National Consumer 
Law Center have removed any doubt about the risk to our disabled 
veterans and the need for congressional action.
  I want to make it abundantly clear that we are not trying to deny 
veterans access to normal credit systems: credit cards, personal loans, 
or home loans. We are trying to ensure that loans made to veterans are 
not out of the reach of State usury laws, which protect all types of 
consumers.
  Greater protection is needed for our most vulnerable veterans--the 
disabled and the elderly. They are among the most needy and, once 
ensnared by these schemes, intimidated and threatened with lawsuits.
  As you know, I introduced similar legislation last year, cosponsored 
by Senator McCain and others that would tighten our laws and better 
protect our veterans from these schemes. Although we adopted this 
legislation in the Senate as part of last year's veterans benefits 
bill, the House conferees would not agree to include it in the 
conference report.
  This year, we must ensure that the conference report includes this 
language and that we are doing all we can to protect veterans from 
these unscrupulous and predatory practices.
  I thank the Veterans Affairs Committee and for Senator Specter's and 
Senator Graham's leadership in support of this effort. I respectfully 
request that they continue this effort and fight for this language 
during conference in the interest of our veterans and their benefits.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that the 
committee-reported substitute be agreed

[[Page 26761]]

to, the bill, as amended, be read a third time and passed, the motion 
to reconsider be laid upon the table, and that any statements relating 
to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment in the nature of a substitute was agreed to.
  The bill (S. 1132), as amended, was read the third time and passed.

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