[Congressional Record (Bound Edition), Volume 149 (2003), Part 21]
[Senate]
[Pages 29612-29620]
[From the U.S. Government Publishing Office, www.gpo.gov]




IMPROVING BENEFITS UNDER LAWS ADMINISTERED BY THE SECRETARY OF VETERANS 
                                AFFAIRS

  Mr. THOMAS. Madam President, I ask unanimous consent that the 
Veterans' Affairs Committee be discharged from further consideration of 
H.R. 2297 and the Senate proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered. The 
committee is discharged.
  The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (H.R. 2297) to amend title 38, United States Code, 
     to improve benefits under laws administered by the Secretary 
     of Veterans Affairs, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. SPECTER. Madam President, I have sought recognition today to 
explain briefly the provisions of H.R. 2297, the proposed Veterans 
Benefits Act of 2003, that the Ranking Member of the Committee on 
Veterans Affairs, Senator Graham of Florida, and I propose be approved, 
as amended, by the Senate. H.R. 2297, as so amended and as presented to 
the Senate today, incorporates agreements reached between the Senate 
Committee of Veterans Affairs, which I am privileged to chair, and our 
counterpart Committee in the House of Representatives, on legislation 
relating to the provision of non-healthcare-related benefits by the 
Department of Veterans Affairs.
  H.R. 2297, as amended, contains provisions derived from S. 1132, the 
proposed Veterans Benefits Enhancements Act of 2003, as approved by the 
Senate on October 31, 2003, and S. 1156, as reported by the Committee 
on Veterans' Affairs on November 10, 2003. It also contains provisions 
derived from H.R. 2297, as approved by the House on October 8, 2003; 
H.R. 1257, as approved by the House on May 22, 2003; and H.R. 1460, as 
amended from the bill approved by the House on June 24, 2003. Inasmuch 
as S. 1132, as approved by the Senate earlier this year, had itself 
incorporated provisions derived from 11 Senate bills--meaning that H.R. 
2297 contains provisions derived from 15 separate bills--it is apparent 
that this bill represents the work and ideas of many sponsors with many 
differing interests. I thank the Ranking Member, Senator Graham of 
Florida, and the Chairman and Ranking Member of the House Committee on 
Veterans Affairs, Representative Chris Smith of New Jersey and 
Representative Lane Evans of Illinois, for the spirit of cooperation 
and bipartisanship that they showed in addressing the sometimes-
competing interests in play as 15 pieces of legislation were knitted 
into a single, coherent whole.
  Since this is a lengthy bill--over 50 pages--I will not endeavor in 
this statement to explain in detail each and every provision. Rather, I 
will discuss the highlights briefly in this statement, and refer my 
colleagues to a Joint Explanatory Statement. I ask unanimous consent to 
print in the Record a detailed explanation of the bill as amended.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

Explanatory Statement on Senate Amendment to House Bill, H.R. 2297, as 
                                Amended

       H.R. 2297, as amended, the Veterans Benefits Act of 2003, 
     reflects a Compromise Agreement reached by the House and 
     Senate Committees on Veterans' Affairs (``the Committees'') 
     on the following bills considered in the House and Senate 
     during the 108th Congress: H.R. 1257; H.R. 1460, as amended; 
     H.R. 2297, as amended (``House Bill''); and S. 1132, as 
     amended (``Senate Bill''). H.R. 1257 passed the House on May 
     22, 2003; H.R. 1460, as amended, passed the House on June 24, 
     2003; H.R. 2297, as amended, passed the House on October 8, 
     2003; S. 1132, as amended, passed the Senate on October 31, 
     2003.
       The House and Senate Committees on Veterans' Affairs have 
     prepared the following explanation of H.R. 2297, as amended 
     (``Compromise Agreement''). Differences between the 
     provisions contained in the Compromise Agreement and the 
     related provisions of H.R. 1257, H.R. 1460, as amended, H.R. 
     2297, as amended, and S. 1132, as amended, 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: SURVIVOR BENEFITS


 retention of certain veterans survivor benefits for surviving spouses 
                        remarrying after age 57

     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'') and related housing and 
     education benefits during the course of the remarriage. This 
     benefit may be reinstated in the event the subsequent 
     marriage is terminated. Public Law 107-330 extended to 
     surviving spouses who remarry after age 55 continuing 
     eligibility under the Civilian Health and Medical Program of 
     the Department of Veterans Affairs (``CHAMPVA'').
     House Bill
       Section 6 of H.R. 2297, as amended, would allow a surviving 
     spouse who remarries after attaining age 55 to retain the DIC 
     benefit. Spouses who remarry at age 55 or older prior

[[Page 29613]]

     to enactment of the bill would have one year from the date of 
     enactment to apply for reinstatement of DIC benefits. The 
     amount of DIC would be paid with no reduction of certain 
     other Federal 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 57 
     would retain DIC, home loan, and educational benefits 
     eligibility. Surviving spouses who remarried after attaining 
     age 57 prior to enactment of the Compromise Agreement would 
     have one year to apply for reinstatement of these benefits.


benefits for children with spina bifida of veterans of certain service 
                                in korea

     Current Law
       Chapter 18 of title 38, United States Code, authorizes the 
     Department of Veterans Affairs (``VA'') to provide benefits 
     and services to those children born with spina bifida whose 
     natural parent (before the child was conceived) served in the 
     Republic of Vietnam between January 9, 1962 and May 7, 1975. 
     Benefits and services are authorized due to the association 
     between exposure to dioxin and the incidence of spina bifida 
     in the children of those exposed. Children born with spina 
     bifida whose parent was exposed to dioxin and other 
     herbicides during military service in locations other than 
     the Republic of Vietnam do not qualify for VA benefits and 
     services.
     House Bill
       Section 12 of H.R. 2297, as amended, would permit children 
     born with spina bifida whose parent (before the child was 
     conceived) served in an area of Korea near the demilitarized 
     zone (``DMZ'') between October 1, 1967 and May 7, 1975, to 
     qualify for benefits in the same manner as children whose 
     parent served in the Republic of Vietnam.
     Senate Bill
       Section 101 of S. 1132, as amended, would permit children 
     with spina bifida whose parent (before the child was 
     conceived) served in or near the DMZ in Korea during the 
     period beginning on January 1, 1967, and ending on December 
     31, 1969, to qualify for benefits in the same manner as 
     children whose parent served in the Republic of Vietnam. The 
     Senate Bill would require the Secretary of Veterans Affairs 
     to make determinations of exposure to herbicides in Korea in 
     consultation with the Secretary of Defense.
     Compromise Agreement
       Section 102 of the Compromise Agreement would generally 
     follow the Senate language. However, under the Compromise 
     Agreement, the time period for qualifying service in or near 
     the DMZ is changed to service which occurred during the 
     period beginning on September 1, 1967, and ending on August 
     31, 1971. The Committees note that although use of herbicides 
     in Vietnam ceased in 1971, Vietnam-era veterans who served 
     until May 7, 1975, are presumed to have been exposed to 
     residuals. Similarly, even though herbicide use in or near 
     the Korean DMZ ended in 1969, the Committees believe it is 
     appropriate to extend the qualifying service period beyond 
     1969 to account for residual exposure.
       The Committees also note that the Secretary of Defense has 
     identified the following units as those assigned or rotated 
     to areas near the DMZ where herbicides were used between 1968 
     and 1969: combat brigades of the 2nd Infantry Division (1-38 
     Infantry, 2-38 Infantry, 1-23 Infantry, 2-23 Infantry, 3-23 
     Infantry, 3-32 Infantry, 1-9 Infantry, 2-9 Infantry, 1-72 
     Armor, and 2-72 Armor); Division Reaction Force (4-7th 
     Cavalry, Counter Agent Company); 3rd Brigade of the 7th 
     Infantry Division (1-17th Infantry, 2-17 Infantry, 1-73 Armor 
     and 2-10th Cavalry); and Field Artillery, Signal and Engineer 
     support personnel.


alternate beneficiaries for national service life insurance and united 
                    states government life insurance

     Current Law
       Section 1917 of title 38, United States Code, gives 
     veterans insured under the VA's National Service Life 
     Insurance (``NSLI'') program the right to designate the 
     beneficiary or beneficiaries of insurance policies maturing 
     on or after August 1, 1946. It also specifies the modes of 
     payment to beneficiaries when an insured dies, and sets forth 
     the procedure to be followed when a beneficiary has not been 
     designated or dies before the insured.
       Section 1949 of title 38, United States Code, gives 
     veterans insured under the United States Government Life 
     Insurance (``USGLI'') program the right to change 
     beneficiaries, and sections 1950 through 1952 of title 38 set 
     out the modes of payment to designated beneficiaries and sets 
     forth the procedure to be followed when a beneficiary either 
     has not been designated or dies before the insured. For the 
     NSLI and USGLI programs, the law does not specify the course 
     of action VA is to take when no beneficiary can be found.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 102 of S. 1132, as amended, would authorize the 
     payment of NSLI and USGLI to alternate beneficiaries, in 
     order of precedence and as designated by the insured veteran, 
     if no claim is made by the primary beneficiary within two 
     years of the insured veteran's death. If four years have 
     elapsed since the death of the insured and no claim has been 
     filed by a person designated by the insured as a beneficiary, 
     section 102 would authorize VA to make payment to a person VA 
     determines to be equitably entitled to such payment.
     Compromise Agreement
       Section 103 of the Compromise Agreement follows the Senate 
     language.


        payment of benefits accrued and unpaid at time of death

     Current Law
       Section 5121 of title 38, United States Code, restricts 
     specified classes of survivors to receiving no more than two 
     years of accrued benefits if a veteran dies while a claim for 
     VA periodic monetary benefits (other than insurance and 
     servicemen's indemnity) is being adjudicated. Public Law 104-
     275 extended the retroactive payment from one year to two 
     years.
     House Bill
       Section 6 of H.R. 1460, as amended, would repeal the two-
     year limitation on accrued benefits so that a veteran's 
     survivor may receive the full amount of award for accrued 
     benefits.
     Senate Bill
       Section 105 of S. 1132, as amended, contains an identical 
     provision.
     Compromise Agreement
       Section 104 of the Compromise Agreement contains this 
     provision.

    TITLE II: BENEFITS FOR FORMER PRISONERS OF WAR AND FOR FILIPINO 
                                VETERANS

                  Subtitle A--Former Prisoners of War


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

     Current Law
       Section 1112(b) of title 38, United States Code, specifies 
     a list of 15 disabilities that VA presumes are related to 
     military service for former prisoners of war (``POWs'') who 
     were held captive for not less than 30 days. If a former POW 
     was interned for less than 30 days, he or she must establish 
     that the disability was incurred or aggravated during 
     military service in order for service connection to be 
     granted.
       The list in section 1112(b) of title 38, United States 
     Code, does not include cirrhosis of the liver; however, on 
     July 18, 2003, VA published a regulation adding cirrhosis of 
     the liver to the list of conditions presumptively service-
     connected for former POWs. (68 Fed. Reg. 42,602).
     House Bill
       Section 11 of H.R. 2297, as amended, would eliminate the 
     30-day requirement for psychosis, any anxiety states, 
     dysthymic disorders, organic residuals of frostbite and post-
     traumatic arthritis. Section 11 would also codify cirrhosis 
     of the liver as a disability which is presumptively service-
     connected for a former POW who was interned for at least 30 
     days.
     Senate Bill
       Section 302 of S. 1132, as amended, contains an identical 
     provision.
     Compromise Agreement
       Section 201 of the Compromise Agreement contains this 
     provision.

                     Subtitle B--Filipino Veterans


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

     Current Law
       Section 107(a) of title 38, United States Code, generally 
     provides that service before July 1, 1946, in the organized 
     military forces of the Government of the Commonwealth of the 
     Philippines, including organized guerilla units 
     (``Commonwealth Army veterans''), may in some circumstances 
     be a basis for entitlement to disability compensation, 
     dependency and indemnity compensation, monetary burial 
     benefits, and certain other benefits under title 38, United 
     States Code, and that payment of such benefits will be at the 
     rate of $0.50 for each dollar authorized. Section 107(b) of 
     title 38, United States Code, generally provides that service 
     in the Philippine Scouts under section 14 of the Armed Forces 
     Voluntary Recruitment Act of 1945 (i.e., service in the ``new 
     Philippine Scouts''), may be a basis for entitlement to 
     disability compensation, DIC, and certain other benefits 
     under title 38, United States Code, but payment of such 
     benefits will be at the rate of $0.50 for each dollar 
     authorized.
     House Bill
       Section 16 of H.R. 2297, as amended, would provide the full 
     amount of compensation and DIC to eligible members of the new 
     Philippine Scouts, as well as the full amount of DIC paid by 
     reason of service in the organized military forces of the 
     Commonwealth of the Philippines, including organized guerilla 
     units, if the individual to whom the

[[Page 29614]]

     benefit is payable resides in the United States and is either 
     a citizen of the U.S. or an alien lawfully admitted for 
     permanent residence.
     Senate Bill
       Section 321 of S. 1132, as amended, contains an identical 
     provision.
     Compromise Agreement
       Section 211 of the Compromise Agreement contains this 
     provision.


BURIAL BENEFITS FOR NEW PHILIPPINE SCOUTS RESIDING IN THE UNITED STATES

     Current Law
       Section 107 of title 38, United States Code, provides that 
     persons who served in the organized military forces of the 
     Government of the Commonwealth of the Philippines, including 
     organized guerilla units (``Commonwealth Army veterans''), 
     who lawfully reside in the United States are eligible for 
     burial in a VA national cemetery and VA monetary burial 
     benefits at the full-dollar rate if, at the time of death, 
     they are receiving VA disability compensation or would have 
     been receiving VA pension but for their lack of qualifying 
     service.
     House Bill
       Section 17 of H.R. 2297, as amended, would extend 
     eligibility for burial in a national cemetery to new 
     Philippine Scouts, as well as eligibility for VA burial 
     benefits, to those who lawfully reside in the United States.
     Senate Bill
       Section 322 of S. 1132, as amended, contains an identical 
     provision.
     Compromise Agreement
       Section 212 of the Compromise Agreement contains this 
     provision.


 EXTENSION OF AUTHORITY TO MAINTAIN REGIONAL OFFICE IN THE REPUBLIC OF 
                            THE PHILIPPINES

     Current Law
       Section 315(b) of title 38, United States Code, authorizes 
     the Secretary of Veterans Affairs to operate a regional 
     office in the Republic of the Philippines until December 31, 
     2003. Congress last extended this authority in Public Law 
     106-117.
     House Bill
       Section 18 of H.R. 2297, as amended, would extend the 
     Secretary's authority to operate a regional office in the 
     Republic of the Philippines through December 31, 2009.
     Senate Bill
       Section 323 of S. 1132, as amended, would extend the 
     Secretary's authority to operate a regional office in the 
     Republic of the Philippines through December 31, 2008.
     Compromise Agreement
       Section 213 of the Compromise Agreement follows the House 
     language.

   TITLE III--EDUCATION BENEFITS, EMPLOYMENT PROVISIONS, AND RELATED 
                                MATTERS


  EXPANSION OF MONTGOMERY GI BILL EDUCATION BENEFITS FOR CERTAIN SELF-
                          EMPLOYMENT TRAINING

     Current Law
       Section 3452(e) of title 38, United States Code, furnishes 
     various legal definitions used in the administration of VA's 
     educational assistance programs. Self-employment training is 
     not included among the current definitions.
     House Bill
       Section 2 of H.R. 2297, as amended, would expand the 
     Montgomery GI Bill program by authorizing educational 
     assistance benefits for on-job training of less than six 
     months in certain self-employment training programs, to 
     include: (1) an establishment providing apprentice or other 
     on-job training, including programs under the supervision of 
     a college or university or any State department of education; 
     (2) an establishment providing self-employment training 
     consisting of full-time training for less than six months 
     that is needed for obtaining licensure to engage in a self-
     employment occupation or required for ownership and operation 
     of a franchise; (3) a State board of vocational education; 
     (4) a Federal or State apprenticeship registration agency; 
     (5) a joint apprenticeship committee established pursuant to 
     the National Apprenticeship Act, title 29, United States 
     Code; or (6) an agency of the Federal Government authorized 
     to supervise such training.
     Senate Bill
       The Senate Bill contains no comparable provision.
     Compromise Agreement
       Section 301 of the Compromise Agreement follows the House 
     language.


 INCREASE IN RATES OF SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE

     Current Law
       Chapter 35 of title 38, United States Code, specifies the 
     eligibility criteria, programs of education and training, and 
     payment amounts applicable under VA's Survivors' and 
     Dependents' Educational Assistance (``DEA'') benefits 
     program. Generally, those eligible for DEA benefits are the 
     spouses and dependents of: veterans with total and permanent 
     service-connected ratings; veterans who died as a result of 
     service-related injuries; or servicemembers who died while on 
     active duty. Currently, monthly benefit rates for eligible 
     DEA beneficiaries are $695 for full-time study, $522 for 
     three-quarter-time study, and $347 for half-time study. 
     Monthly DEA benefits are also available for beneficiaries 
     pursuing programs of education on a less-than-half-time 
     basis, through farm cooperative programs, correspondence 
     courses, special restorative training programs, or programs 
     of apprenticeship or other approved on-job training programs.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 104 of S. 1132, as amended, would raise monthly DEA 
     benefits by 13.4 percent over current levels. The new rates 
     would be set at $788 for full-time study, $592 for three-
     quarter time study, and $394 for half-time study. A 13.4 
     percent increase would also be made to benefits paid to 
     eligible persons pursuing a program of education on a less 
     than half-time basis, through institutional courses, farm 
     cooperative programs, correspondence courses, special 
     restorative training programs, or programs of apprenticeship 
     or other approved on-job training programs. The increases 
     would take effect on July 1, 2004.
     Compromise Agreement
       Section 302 of the Compromise Agreement follows the Senate 
     language.


    RESTORATION OF SURVIVORS' AND DEPENDENTS' EDUCATION BENEFITS OF 
       INDIVIDUALS BEING ORDERED TO FULL-TIME NATIONAL GUARD DUTY

     Current Law
       Section 3512(h) of title 38, United States Code, provides 
     for an extension of Survivors' and Dependents' Educational 
     Assistance only to reservists called to active duty after 
     September 11, 2001, for an amount of time equal to that 
     period of full-time duty, plus 4 months.
     House Bill
       Section 3 of H.R. 2297, as amended, would provide that 
     National Guard members who qualify for survivors' and 
     dependents' education benefits under chapter 35 of title 38, 
     United States Code, and are involuntarily ordered to full-
     time duty under title 32, United States Code, after September 
     11, 2001, would have their eligibility extended by an amount 
     of time equal to that period of full-time duty, plus 4 
     months.
     Senate Bill
       Section 103 of S. 1132, as amended, contains an identical 
     provision.
     Compromise Agreement
       Section 303 of the Compromise Agreement contains this 
     provision.


  ROUNDING DOWN OF CERTAIN COST-OF-LIVING ADJUSTMENTS ON EDUCATIONAL 
                               ASSISTANCE

     Current Law
       Sections 3015(h) and 3564 of title 38, United States Code, 
     provide for annual cost-of-living adjustments to both the 
     Montgomery GI Bill and Survivors' and Dependents' Educational 
     Assistance programs. Each section specifies that percentage 
     increases be ``rounded to the nearest dollar.''
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 304 of S. 1132, as amended, would require annual 
     percentage adjustments under sections 3015(h) and 3564 to be 
     rounded down to the nearest dollar. This section would first 
     apply to adjustments made at the start of fiscal year 2005.
     Compromise Agreement
       Section 304 of the Compromise Agreement follows the Senate 
     language. However, the Compromise Agreement specifies that 
     the changes made by the Senate language shall be effective 
     only through September 30, 2013.


     AUTHORIZATION FOR STATE APPROVING AGENCIES TO APPROVE CERTAIN 
                        ENTREPRENEURSHIP COURSES

     Current Law
       Section 3675 of title 38, United States Code, establishes 
     requirements for approval of accredited courses offered by 
     educational institutions. Section 3452 of title 38, United 
     States Code, furnishes various legal definitions used in the 
     administration of VA educational assistance programs. Section 
     3471 of title 38, United States Code, establishes general 
     requirements which must be met by educational institutions 
     before VA may approve applications for educational assistance 
     from veterans or eligible persons. There is no provision in 
     current law authorizing the approval of entrepreneurship 
     courses.
     House Bill
       Section 2 of H.R 1460, as amended, would allow State 
     approving agencies to approve non-degree, non-credit 
     entrepreneurship courses offered by a Small Business 
     Development Center (``SBDC'') or the National Veterans 
     Business Development Corporation for the training of 
     veterans, disabled veterans, dependent spouses and children 
     of certain disabled or deceased veterans, and members of the 
     National Guard and Selected Reserve. VA would also be 
     prohibited from considering a beneficiary as already 
     qualified for

[[Page 29615]]

     the objective of a program of education offered by a 
     qualified provider of an entrepreneurship course solely 
     because he or she is the owner or operator of a small 
     business.
     Senate Bill
       The Senate Bill contains no comparable provision.
     Compromise Agreement
       Section 305 of the Compromise Agreement follows the House 
     language.


    REPEAL OF PROVISIONS RELATING TO OBSOLETE EDUCATION LOAN PROGRAM

     Current Law
       Subchapter III of chapter 36 of title 38, United States 
     Code, establishes VA's education loan program, states policy 
     regarding eligibility, amount, condition, and interest rates 
     of loans, and establishes a revolving fund and insurance 
     against defaults as part of its administration. This program 
     has been in effect since January 1, 1975.
     House Bill
       Section 5 of H.R. 2297, as amended, would, effective on the 
     date of enactment, repeal the VA education loan program and 
     waive any existing repayment obligations of a veteran, 
     including overpayments due to default on these loans.
     Senate Bill
       Section 305 of S. 1132, as amended, contains a comparable 
     provision, but terminates the program 90 days after date of 
     enactment.
     Compromise Agreement
       Section 306 of the Compromise Agreement follows the Senate 
     language.


    SIX-YEAR EXTENSION OF VETERANS' ADVISORY COMMITTEE ON EDUCATION

     Current Law
       Section 3692 of title 38, United States Code, requires the 
     Secretary of Veterans Affairs to administer a Veterans' 
     Advisory Committee on Education. It requires the Secretary to 
     consult with and seek the advice of the Advisory Committee 
     from time to time with respect to the administration of 
     chapters 30, 32, and 35 of title 38, United States Code, and 
     chapter 1606 of title 10, United States Code. The Advisory 
     Committee's authorization expires on December 31, 2003.
     House Bill
       Section 4 of H.R. 2297, as amended, would extend, through 
     December 31, 2009, the Veterans' Advisory Committee on 
     Education, as well as amend the language to eliminate the 
     requirement that veterans from certain periods--World War II, 
     Korean conflict era, or post-Korean conflict era--be required 
     to participate as members of the Advisory Committee.
     Senate Bill
       Section 342 of S. 1132, as amended, would extend the 
     Veterans' Advisory Committee on Education through December 
     31, 2013, and maintain the existing membership requirements, 
     as practicable.
     Compromise Agreement
       Section 307 of the Compromise Agreement follows the Senate 
     language with regard to membership, and the House language 
     with regard to extending the Advisory Committee's 
     authorization date through December 31, 2009.


PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY 
                  QUALIFIED SERVICE-DISABLED VETERANS

     Current Law
       Sections 631 through 657 of title 15, United States Code, 
     establish policies with respect to aid to small businesses. 
     Section 637 specifies Small Business Administration (``SBA'') 
     authorities regarding procurement matters. Section 637(a) 
     specifies SBA authorities with respect to procurement 
     contracts and subcontracts to disadvantaged small business 
     concerns. Section 637(d) establishes policies regarding 
     performance of contracts by small business concerns 
     (``SBC''), as described in title 15, United States Code. 
     Section 637(h) establishes policies regarding award of 
     contracts, procedures other than competitive ones, and 
     exceptions.
     House Bill
       Section 3 of H.R. 1460, as amended, would provide Federal 
     agencies discretionary authority to create ``sole-source'' 
     contracts for service-disabled veteran-owned and controlled 
     small businesses, up to $5 million for manufacturing contract 
     awards and up to $3 million for non-manufacturing contract 
     awards.
       This section would provide Federal agencies discretionary 
     authority to restrict certain contracts to service-disabled 
     veteran-owned and controlled small businesses if at least two 
     such concerns are qualified to bid on the contract.
       Section 3 would establish a contracting priority that 
     places restricted and ``sole source'' contracts for service-
     disabled veteran-owned and controlled small businesses 
     immediately below the priority for socially and economically 
     disadvantaged firms (known as ``8(a)'' program contracts) for 
     all Federal departments and agencies except VA. Such 
     priorities for service-disabled veteran-owned and controlled 
     small businesses would rank above priorities for HUBZone and 
     women-owned businesses. HUBZones are SBCs located in 
     historically underutilized business zones. However, a 
     contracting officer would procure from a source on the basis 
     of a preference provided under any provision of this 
     legislation unless the contracting officer had determined the 
     procurement could be made by a contracting authority having a 
     higher priority. Lastly, procurement could not be made from a 
     source on the basis of preference provided under this 
     legislation if the procurement could otherwise be made from a 
     different source under section 4124 or 4125 of title 18, 
     United States Code, or the Javits-Wagner-O'Day Act.
       Section 3 would establish a four-year pilot program in the 
     Department of Veterans Affairs in which service-disabled 
     veteran-owned and controlled small businesses would have the 
     same contracting priority as the 8(a) program.
       This section would define ``qualified service-disabled 
     veteran'' as any veteran who (1) has one or more disabilities 
     that are service-connected as defined in section 101(16) of 
     title 38, United States Code, and are rated at 10 percent or 
     more by the Secretary of Veterans Affairs, or (2) is entitled 
     to benefits under section 1151 of title 38, United States 
     Code.
       Section 3 would define ``small business concerns owned and 
     controlled by qualified service-disabled veterans'' as (1) 
     one in which not less than 51 percent of which is owned by 
     one or more qualified service-disabled veterans or, in the 
     case of any publicly-owned businesses, not less than 51 
     percent of the stock of which is owned by one or more 
     qualified service-disabled veterans, and (2) the management 
     and daily business operations of which are controlled by one 
     or more qualified service-disabled veterans or, in the case 
     of a veteran with permanent and severe disability, the spouse 
     or permanent care giver of the veteran.
       Section 3 would define the term ``certified small business 
     concerns owned and controlled any qualified service-disabled 
     veterans'' as any small business concern owned and controlled 
     by qualified service-disabled veterans that is certified by 
     the Administrator of the Small Business Administration as 
     being such a concern.
     Senate Bill
       The Senate Bill contains no comparable provision.
     Compromise Agreement
       Section 308 of the Compromise Agreement would provide 
     Federal contracting officials the discretionary authority to 
     award sole source contracts (limited to contracts of up to $5 
     million for manufacturing and $3 million for non-
     manufacturing) to SBCs owned and controlled by service-
     disabled veterans. This section would also provide Federal 
     contracting officials, in certain circumstances, the 
     discretionary authority to award contracts on a restricted 
     competition basis to SBCs owned and controlled by service-
     disabled veterans. This provision would not supercede any 
     existing procurement preference established under law. 
     Specifically, it would not accord service-disabled veteran 
     small business owners priority over procurement preferences 
     under the Federal Prison Industries, Javits-Wagner-O'Day, SBA 
     8(a), Women's, or HubZone programs. Rather, the Committees 
     intend the provision to provide Federal contracting officials 
     a means to improve their results with respect to contracting 
     with service-disabled veterans. The Committees note that in 
     1999, Public Law 106-50 established a 3 percent government-
     wide goal for procurement from service-disabled veteran-owned 
     small businesses. To date, all Federal agencies fall far 
     short of reaching this procurement goal. The Committees 
     intend that a determination of service-connection by the 
     Secretary of Veterans Affairs would be binding on the SBA for 
     purposes of participation in this program. The Committees 
     also urge the SBA and the Office of Federal Procurement 
     Policy to expeditiously and transparently implement this 
     program, perform outreach, and provide the necessary 
     resources to improve results with respect to SBCs owned and 
     operated by service-disabled veterans.


        outstationing of transition assistance program personnel

     Current Law
       Section 1144 of title 10, United States Code, authorizes 
     the Secretary of Labor to place staff in veterans' assistance 
     offices on military installations, both foreign and domestic, 
     to help transitioning servicemembers obtain civilian jobs.
     House Bill
       Section 19 of H.R. 2297, as amended, would require the 
     Department of Labor to place staff in veterans' assistance 
     offices where VA staff are located at overseas military 
     installations 90 days after enactment. It would also 
     authorize the Department of Labor to exceed the number of VA 
     locations and place staff in additional locations abroad.
     Senate Bill
       The Senate Bill contains no comparable provision.
     Compromise Agreement
       Section 309 of the Compromise Agreement follows the House 
     language with a technical modification.

[[Page 29616]]



             TITLE IV: HOUSING BENEFITS AND RELATED MATTERS


authorization to provide adapted housing assistance to certain disabled 
         members of the armed forces who remain on active duty

     Current Law
       Section 2101 of title 38, United States Code, provides for 
     grants to adapt or acquire suitable housing for certain 
     severely disabled veterans, including veterans who are unable 
     to ambulate without assistance. Severely disabled 
     servicemembers who have not yet been processed for discharge 
     from military service, but who will qualify for the benefit 
     upon discharge due to the severity of their disabilities, are 
     not allowed to apply for or receive the grant until they are 
     actually discharged from military service.
     House Bill
       Section 4 of H.R. 1460, as amended, would permit a member 
     of the Armed Forces to apply for and receive a grant prior to 
     actually being discharged from military service.
     Senate Bill
       The Senate Bill contains no comparable provision.
     Compromise Agreement
       Section 401 of the Compromise Agreement follows the House 
     language.


increase in amounts for certain adaptive benefits for disabled veterans

     Current Law
       The Secretary of Veterans Affairs is authorized in chapter 
     21 of title 38, United States Code, to assist eligible 
     veterans in acquiring suitable housing and adaptations with 
     special fixtures made necessary by the nature of the 
     veteran's service-connected disability, and with the 
     necessary land. The maximum amount authorized for a severely 
     disabled veteran is $48,000. The maximum amount authorized 
     for less severely disabled veterans is $9,250.
       Section 3902(a) of title 38, United States Code, authorizes 
     the Secretary to pay up to $9,000 to an eligible disabled 
     servicemember or veteran to purchase an automobile (including 
     all state, local, and other taxes).
     House Bill
       Section 10(a) of H.R. 2297, as amended, would increase the 
     specially adapted housing grants for the most severely 
     disabled veterans from $48,000 to $50,000, and from $9,250 to 
     $10,000 for less severely disabled veterans.
       Section 10(b) would increase the specially adapted 
     automobile grant from $9,000 to $11,000.
     Senate Bill
       The Senate Bill contains no comparable provision.
     Compromise Agreement
       Section 402 of the Compromise Agreement follows the House 
     language.


   permanent authority for housing loans for members of the selected 
                                reserve

     Current Law
       Under section 3702(a)(2)(E) of title 38, United States 
     Code, members of the Selected Reserve qualify for a VA home 
     loan if the reservist has served for a minimum of six years. 
     Eligibility for reservists under this program is scheduled to 
     expire on September 30, 2009.
     House Bill
       Section 13 of H.R. 2297, as amended, would make the 
     Selected Reserve home loan program permanent.
     Senate Bill
       The Senate Bill contains no comparable provision.
     Compromise Agreement
       Section 403 of the Compromise Agreement follows the House 
     language.


     reinstatement of minimum requirements for sale of vendee loans

     Current Law
       Section 3733 of title 38, United States Code, generally 
     establishes property management policies for real property 
     acquired by the Department of Veterans Affairs as a result of 
     a default on a loan that VA has guaranteed.
     House Bill
       Section 15 of H.R. 2297, as amended, would reinstate the 
     vendee loan program which VA administratively terminated on 
     January 31, 2003. It would increase from 65 percent to 85 
     percent the maximum number of purchases of real property the 
     Secretary may finance in a fiscal year. It would change the 
     vendee loan program from a discretionary to a mandatory one.
     Senate Bill
       Section 308 of S. 1132, as amended, contains an identical 
     provision.
     Compromise Agreement
       Section 404 of the Compromise Agreement contains this 
     provision. However, the Compromise Agreement specifies that 
     the changes made under this provision shall expire after 
     September 30, 2013.


  adjustment to home loan fees and uniformity of fees for qualifying 
           reserve members with fees for active duty veterans

     Current Law
       Section 3729(a) of title 38, United States Code, requires 
     that a fee shall be collected from each person (1) obtaining 
     a housing loan guaranteed, insured, or made under chapter 37; 
     and (2) assuming a loan to which section 3714 (concerning 
     loan assumptions) applies. The fee may be included in the 
     loan.
       Section 3729(b) of title 38, United States Code, determines 
     the amount of the home loan fees expressed as a percentage of 
     the total amount of the loan guaranteed, insured, or made, 
     or, in the case of a loan assumption, the unpaid principal 
     balance of the loan on the date of the transfer of the 
     property.
       Section 3729(b)(2) requires that veterans who served in the 
     Selected Reserve pay 75 basis points more than veterans with 
     active duty service.
     House Bill
       Section 14 of H.R. 2297, as amended, would make four 
     revisions to the Loan Fee Table. First, it would provide 
     uniformity in the funding fees for VA-guaranteed home loans 
     charged to those who served in the Selected Reserve and 
     veterans with active duty service. Second, beginning in 
     fiscal year 2004, it would increase the fee charged for loans 
     made with no down payment by 15 basis points. Third, it would 
     increase the fee charged for repeated use of the home loan 
     benefit, i.e., for a second or subsequent loan, by 30 basis 
     points for the fiscal year 2004-2011 period and by 90 basis 
     points in fiscal years 2012 and 2013. Fourth, it would 
     replace the existing range of fees for hybrid adjustable rate 
     mortgages under the current pilot program with a flat fee of 
     1.25 percent.
     Senate Bill
       Section 307 of S. 1132, as amended, would increase the 
     funding fees for subsequent use of a guaranty by 50 basis 
     points, but only between fiscal years 2005 and 2011.
     Compromise Agreement
       Section 405 of the Compromise Agreement would follow the 
     House language, except that a funding fee for members of the 
     Selected Reserve would, for initial use of a guaranty, be set 
     25 basis points higher than applicable funding fees set for 
     veterans with active duty service. Further, for the period 
     January 1, 2004 through September 30, 2004 only, in the case 
     of active-duty veterans making initial loans with zero 
     dollars down, the fee would be increased from 2.15 percent to 
     2.20 percent. In addition, the Compromise Agreement would not 
     effect a 1.25 percent flat fee for hybrid adjustable rate 
     mortgage loans.


one-year extension of procedures on liquidation sales of defaulted home 
         loans guaranteed by the department of veterans affairs

     Current Law
       Section 3732 of title 38, United States Code, defines the 
     procedures for a liquidation sale of a property acquired by 
     VA in the event of a default on a VA-guaranteed home loan. 
     The procedures direct VA to follow a formula, defined in 
     statute, which mandates VA consider losses it might incur 
     when selling properties acquired through foreclosure. 
     Ultimately, after considering the loss VA can make a 
     determination whether to, in fact, acquire the property or 
     simply pay the guaranty on the loan used to purchase the 
     property. The authority for these procedures is currently set 
     to expire on October 1, 2011.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       The Senate Bill contains no comparable provision.
     Compromise Agreement
       Section 406 of the Compromise Agreement would extend the 
     application of the liquidation sale procedures through 
     October 1, 2012.

                        TITLE V: BURIAL BENEFITS


                         BURIAL PLOT ALLOWANCE

     Current Law
       Veterans who are discharged from active duty service as a 
     result of a service-connected disability, veterans who are 
     entitled to disability compensation or VA pension, and 
     veterans who die in a VA facility are eligible for a $300 VA 
     ``plot allowance'' if they are not buried in a national 
     cemetery. Section 2303(b)(1) of title 38, United States Code, 
     allows state cemeteries to receive the $300 plot allowance 
     payment for the interment of such veterans, and the interment 
     of veterans of any war, if the cemeteries are used solely for 
     the burial of veterans. However, states may not receive a 
     plot allowance for burial of veterans who die as a result of 
     a service-connected disability and whose survivors seek 
     reimbursement of funeral expenses under section 2307 of title 
     38, United States Code (which currently authorizes a $2,000 
     funeral expense benefit).
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 201 of S. 1132, as amended, would expand existing 
     law to allow states to receive the $300 plot allowance for 
     the interment of veterans who did not serve during a wartime 
     period and for the interment of veterans who died as a result 
     of service-connected disabilities and whose survivors sought 
     reimbursement of funeral expenses under section 2307 of title 
     38, United States Code.
     Compromise Agreement
       Section 501 of the Compromise Agreement follows the Senate 
     language.

[[Page 29617]]




  ELIGIBILITY OF SURVIVING SPOUSES WHO REMARRY FOR BURIAL IN NATIONAL 
                               CEMETERIES

     Current Law
       Section 2402(5) of title 38, United States Code, prohibits 
     a surviving spouse of a veteran who has remarried from being 
     buried with the veteran spouse in a national cemetery if the 
     remarriage is in effect when the veteran's surviving spouse 
     dies. Public Law 103-466 revised eligibility criteria for 
     burial in a national cemetery to reinstate burial eligibility 
     for a surviving spouse of an eligible veteran whose 
     subsequent remarriage was terminated by death or divorce.
     House Bill
       Section 7 of H.R. 2297, as amended, would allow the 
     surviving spouse of a veteran to be eligible for burial in a 
     VA national cemetery based on his or her marriage to the 
     veteran, regardless of the status of the subsequent marriage. 
     This eligibility revision would be effective January 1, 2000.
     Senate Bill
       Section 202 of S. 1132, as amended, contains a similar 
     provision, with the eligibility revision being effective on 
     date of enactment.
     Compromise Agreement
       Section 502 of the Compromise Agreement follows the House 
     language. Despite the inclusion of an additional group of 
     persons (i.e., remarried spouses) eligible for national 
     cemetery burial under the Compromise Agreement, the Secretary 
     retains the authority under section 2402(6) of title 38, 
     United States Code, to grant or deny national cemetery burial 
     for other persons, or classes of persons, not explicitly 
     granted eligibility in statute. It has come to the 
     Committees' attention that VA's record-keeping system 
     concerning which persons are granted or denied waivers for 
     burial in national cemeteries is, at best, incomplete. 
     Adequate records on burial waivers are necessary to ensure 
     that the Secretary's judgment on waiver cases is being 
     applied uniformly to all applicants. The Committees direct VA 
     to rectify gaps in its waiver-accounting system so that basic 
     information, such as which persons are denied burial waivers 
     and the reasons for the denial, will be available.


         PERMANENT AUTHORITY FOR STATE CEMETERY GRANTS PROGRAM

     Current Law
       Section 2408(a)(2) of title 38, United States Code, 
     authorizes appropriations, through fiscal year 2004, for VA 
     to make grants to States to assist them in establishing, 
     expanding, or improving state veterans' cemeteries.
     House Bill
       Section 8 of H.R. 2297, as amended, would make the State 
     Cemetery Grants Program permanent.
     Senate Bill
       Section 203 of S. 1132, as amended, contains a similar 
     provision with an additional technical change.
     Compromise Agreement
       Section 503 of the Compromise Agreement follows the Senate 
     language.

               TITLE VI: EXPOSURE TO HAZARDOUS SUBSTANCES


     RADIATION DOSE RECONSTRUCTION PROGRAM OF DEPARTMENT OF DEFENSE

     Current Law
       Section 3.311 of title 38, Code of Federal Regulations, 
     sets out procedures for the adjudication of claims by VA for 
     benefits premised on a veteran's exposure to ionizing 
     radiation in service. For veterans who claim radiation 
     exposure due to participation in nuclear atmospheric testing 
     from 1945 through 1962, or due to occupation duty in 
     Hiroshima and Nagasaki prior to July 1, 1946, dose data are 
     requested from the Department of Defense (``DOD''). DOD's 
     Defense Threat Reduction Agency (``DTRA'') pays a private 
     contractor to estimate radiation exposure through a process 
     called radiation dose reconstruction.
       There is no entity under existing law which provides 
     independent oversight of DTRA's radiation dose reconstruction 
     process.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 331 of S. 1132, as amended, would require VA and 
     DOD to review, and report on the mission, procedures, and 
     administration of the radiation dose reconstruction program. 
     It would also require VA and DOD to establish an advisory 
     board to oversee the program.
     Compromise Agreement
       Section 601 of the Compromise Agreement follows the Senate 
     language.


             STUDY ON DISPOSITION OF AIR FORCE HEALTH STUDY

     Current Law
       The Air Force Health Study (``AFHS'') was initiated by DOD 
     in 1982 to examine the effects of herbicide exposure and 
     health, mortality, and reproductive outcomes in veterans of 
     Operation Ranch Hand, the activity responsible for aerial 
     spraying of herbicides during the Vietnam Conflict. The study 
     will conclude in 2006.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 332 of S. 1132, as amended, would direct VA to 
     enter into an agreement with the National Academy of Sciences 
     (``NAS'') under which NAS would report on the following: (1) 
     the scientific merit of retaining AFHS data after the Ranch 
     Hand study is terminated; (2) obstacles to retaining the AFHS 
     data which may exist; (3) the advisability of providing 
     independent oversight of the data; (4) the advisability and 
     prospective costs of extending the study and the identity of 
     an entity which would be suited to continue the study; and 
     (5) the advisability of making laboratory specimens from the 
     study available for independent research.
     Compromise Agreement
       Section 602 of the Compromise Agreement follows the Senate 
     language, but the reporting deadline is extended to 120 days.


    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

     Current Law
       Public Law 102-585 requires that VA and DOD each contribute 
     $250,000 in annual core funding to the Medical Follow-Up 
     Agency (``MFUA'') for a period of 10 years. MFUA is a panel 
     of the Institute of Medicine which researches military health 
     issues.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 333 of S. 1132, as amended, would mandate VA and 
     DOD funding for MFUA, at current levels, from fiscal year 
     2004 through 2013.
     Compromise Agreement
       Section 603 of the Compromise Agreement follows the Senate 
     language.

                        TITLE VII: OTHER MATTERS


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

     Current Law
       Section 5102(b) of title 38, United States Code, requires 
     that VA, in cases where it receives an application for 
     benefits that is not complete, notify the applicant of the 
     information that is necessary to complete the application for 
     benefits. Similarly, section 5103(a) of title 38, United 
     States Code, requires that VA, when it receives a complete or 
     a substantially complete application for benefits, notify the 
     applicant of any information or evidence necessary to 
     substantiate the claim. Section 5103(b) of title 38, United 
     States Code, states that if information or evidence requested 
     under section 5103(a) is not received within one year of the 
     date of such notification, no benefit may be paid by reason 
     of that application for benefits.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 310 of S. 1132, as amended, would require that 
     claimants who have submitted an incomplete application under 
     section 5102(b) of title 38, United States Code, and who have 
     been notified that information is required to complete the 
     application, submit the information within one year of the 
     date of notification or else no benefit would be paid by 
     reason of the application. It would also clarify section 
     5103(b) by stating that that subsection would not be 
     construed to prohibit VA from making a decision on a claim 
     before the expiration of the one-year period. Section 310 
     would be effective as if enacted on November 9, 2000, 
     immediately after the enactment of the Veterans Claims 
     Assistance Act of 2000.
     Compromise Agreement
       Section 701 of the Compromise Agreement would follow the 
     Senate language, but would make a further amendment to 
     section 5103(b) of title 38, United States Code, to remove 
     the statutory bar to payment of benefits when information or 
     evidence, requested of the claimant by VA, is not submitted 
     within one year of the notification requesting such 
     information or evidence. If a matter is on appeal and 
     evidence is received beyond the one-year period relating to 
     the original claim, it should be considered.
       Section 701(d)(1) of the Compromise Agreement would require 
     VA to readjudicate the original claim when a claimant 
     adequately asserts he or she was misled upon receiving 
     notification from VA of the information or evidence needed to 
     substantiate the claim. However, section 701(d)(4) specifies 
     that the Secretary is not required to identify or 
     readjudicate any claim based upon the authority given to the 
     Secretary under this section when information or evidence was 
     submitted during the one-year period following the 
     notification or when the claim has been the subject of a 
     timely appeal to the Board of Veterans' Appeals or the United 
     States Court of Appeals for Veterans Claims.

[[Page 29618]]




CLARIFICATION OF APPLICABILITY OF PROHIBITION ON ASSIGNMENT OF VETERANS 
      BENEFITS TO AGREEMENTS ON FUTURE RECEIPT OF CERTAIN BENEFITS

     Current Law
       Section 5301 of title 38, United States Code, prohibits the 
     assignment of VA benefits and exempts such benefits from 
     taxation and from the claims of creditors.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 311 of S. 1132, as amended, would clarify current 
     statutory language prohibiting the assignment of benefits and 
     specify that any agreement under which a VA beneficiary might 
     purport to transfer to another person or entity the right to 
     receive direct or indirect payments of compensation, pension, 
     or DIC benefits shall be deemed to be a prohibited 
     assignment. Section 311 would also make it clear that such 
     prohibitory language would not bar loans to VA beneficiaries 
     which might be repaid with funds derived from VA, so long as 
     each periodic payment made under the loan is separately and 
     voluntarily executed by the beneficiary at the time the 
     payment is made.
     Compromise Agreement
       Section 702 of the Compromise Agreement would follow the 
     Senate language but would modify it to state that payments on 
     loans are explicitly allowed when made by preauthorized 
     electronic funds transfers pursuant to the Electronic Funds 
     Transfers Act (``EFTA''). The EFTA defines a characteristic 
     of these transfers as allowing the beneficiary to direct his 
     or her financial institution to cease payments upon the 
     beneficiary's notice. It is the Committees' intent to ensure 
     that methods of loan repayment would not be limited for 
     disabled veterans. The Compromise Agreement would also 
     eliminate the section that specifies the effective date of 
     the provision. It is the Committees' intent that prohibition 
     against assignment shall be enforced through coordination 
     with appropriate authorities.


     SIX-YEAR EXTENSION OF ADVISORY COMMITTEE ON MINORITY VETERANS

     Current Law
       Section 544 of title 38, United States Code, mandates that 
     VA establish an Advisory Committee on Minority Veterans. The 
     Secretary of Veterans Affairs must, on a regular basis, 
     consult with and seek the advice of the Advisory Committee 
     with respect to issues relating to the administration of 
     benefits for minority group veterans. The Secretary must also 
     consult with and seek the advice of the Committee with 
     respect to reports and studies pertaining to such veterans, 
     and the needs of such veterans for compensation, health care, 
     rehabilitation, outreach, and other benefits and programs 
     administered by VA. The Advisory Committee is required to 
     submit an annual report providing its assessment of the needs 
     of minority veterans, VA programs designed to meet those 
     needs, and any recommendations the Advisory Committee 
     considers appropriate. The authorization for the Advisory 
     Committee expires on December 31, 2003.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 341 of S. 1132, as amended, would extend the 
     authorization of the Advisory Committee on Minority Veterans 
     until December 31, 2007.
     Compromise Agreement
       Section 703 of the Compromise Agreement would extend the 
     authorization of the Advisory Committee until December 31, 
     2009.


      TEMPORARY AUTHORITY FOR PERFORMANCE OF MEDICAL DISABILITIES 
                  EXAMINATIONS BY CONTRACT PHYSICIANS

     Current Law
       Section 504 of Public Law 104-275 authorized VA to carry 
     out a contract disability examination pilot program at 10 VA 
     regional offices. The law specifies that VA draw funds for 
     the program from amounts available to the Secretary of 
     Veterans Affairs for compensation and pensions.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 343 of S. 1132, as amended, would authorize VA, 
     using funds subject to appropriation, to contract for 
     disability examinations from non-VA providers at all VA 
     regional offices. Such examinations would be conducted 
     pursuant to contracts entered into and administered by the 
     Under Secretary for Benefits. The Secretary's authority under 
     this section would expire on December 31, 2009. No later than 
     four years after the section's enactment, the Secretary would 
     be required to submit a report assessing the cost, 
     timeliness, and thoroughness of disability examinations 
     performed under this section.
     Compromise Agreement
       Section 704 of the Compromise Agreement follows the Senate 
     language, but adds a technical modification that would 
     clarify that the authority granted the Secretary under 
     section 704 of the Compromise Agreement is in addition to the 
     authority already granted the Secretary under Section 504 of 
     Public Law 104-275. Thus, it is the Committees' intent that 
     VA's existing contract for disability examinations under the 
     authority of Public Law 104-275 remain in force. It is also 
     the Committees' intent that the Secretary's ability to enter 
     into contracts in the future under the strictures of Section 
     504 of Public Law 104-275 remain in force as well.


            FORFEITURE OF BENEFITS FOR SUBVERSIVE ACTIVITIES

     Current Law
       Section 6105 of title 38, United States Code, provides that 
     an individual convicted after September 1, 1959, of any of 
     several specified offenses involving subversive activities 
     shall have no right to gratuitous benefits (including the 
     right to burial in a national cemetery) under laws 
     administered by the Secretary of Veterans Affairs. No other 
     person shall be entitled to such benefits on account of such 
     individual.
     House Bill
       Section 20 of H.R. 2297, as amended, would amend current 
     law to supplement the list of serious Federal criminal 
     offenses for which a veteran's conviction results in a bar to 
     VA benefits, including burial in a national cemetery. The 
     following criminal offenses from title 18, United States 
     Code, would be added: section 175, prohibited activities with 
     respect to biological weapons; section 229, prohibited 
     activities with respect to chemical weapons; section 831, 
     prohibited transactions involving nuclear materials; section 
     1091, genocide; section 2332a, use of certain weapons of mass 
     destruction; and section 2332b, acts of terrorism 
     transcending national boundaries. All of these offenses, 
     which involve serious threats to national security, were 
     added to title 18, United States Code, after the enactment of 
     the provisions in section 6105 of title 38, United States 
     Code.
     Senate Bill
       Section 313 of S. 1132, as amended, contains an identical 
     provision.
     Compromise Agreement
       Section 705 of the Compromise Agreement contains this 
     provision.


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

     Current Law
       Sections 1104(a) and 1303(a) of title 38, United States 
     Code, mandate that yearly cost-of-living adjustments made to 
     rates of compensation and dependency and indemnity 
     compensation be rounded down to the nearest whole dollar 
     amount. This authority expires on September 30, 2011.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 301 of S. 1132, as amended, would extend the round-
     down authority under sections 1104(a) and 1303(a) through 
     fiscal year 2013.
     Compromise Agreement
       Section 706 of the Compromise Agreement follows the Senate 
     language.


   CODIFICATION OF REQUIREMENT FOR EXPEDITIOUS TREATMENT OF CASES ON 
                                 REMAND

     Current Law
       Section 302 of Public Law 103-446 requires the Secretary of 
     Veterans Affairs to provide for the expeditious treatment by 
     the Board of Veterans' Appeals and by regional offices of the 
     Veterans Benefits Administration of claims remanded by the 
     Board of Veterans' Appeals or the United States Court of 
     Appeals for Veterans Claims.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       The Senate Bill contains no comparable provision.
     Compromise Agreement
       Section 707 of the Compromise Agreement would codify the 
     provisions of section 302 of Public Law 103-446. Expedited 
     treatment of decisions of the Board of Veterans' Appeals 
     would be codified in chapter 51 of title 38, United States 
     Code. Expedited treatment of decisions of the United States 
     Court of Appeals for Veterans Claims would be codified in 
     chapter 71 of title 38, United States Code.

                   LEGISLATIVE PROVISIONS NOT ADOPTED


    CLARIFICATION OF NOTICE OF DISAGREEMENT FOR APPELLATE REVIEW OF 
               DEPARTMENT OF VETERANS AFFAIRS ACTIVITIES

     Current Law
       Claimants for VA benefits who disagree with an initial 
     decision rendered by VA may initiate an appeals process by 
     submitting a written notice of disagreement (``NOD'') within 
     one year after the claimant was notified of the initial 
     decision. Section 7105(b) of title 38, United States Code, 
     states that an NOD ``must be in writing and filed with the 
     activity which entered the determination with which 
     disagreement is expressed.'' Upon the timely filing of an 
     NOD, VA is required to provide appellate review of its 
     initial benefits rating decision.
       VA has promulgated regulations to implement section 7105 of 
     title 38, United States

[[Page 29619]]

      Code, which state that ``while special wording is not 
     required, the Notice of Disagreement must be in terms which 
     can be reasonably construed as disagreement with the 
     determination and [expressing a] desire for appellate 
     review.'' 38 CFR Sec. 20.201 (2002).
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 314 of S. 1132, as amended, would clarify section 
     7105(b) of title 38, United States Code, by requiring that VA 
     deem any written document which expresses disagreement with a 
     VA decision to be an NOD unless VA finds that the claimant 
     has disavowed a desire for appellate review. This section 
     would be effective with respect to documents filed on or 
     after the date of enactment, and with respect to documents 
     filed before the date of enactment and not treated by VA as 
     an NOD pursuant to part 20.201 of title 38, Code of Federal 
     Regulations. Furthermore, a document filed as an NOD after 
     March 15, 2002, and rejected by the Secretary as insufficient 
     would, at VA motion or at the request of a claimant within 
     one year of enactment, be deemed to be an NOD if the document 
     expresses disagreement with a decision and VA finds that the 
     claimant has not disavowed a desire for appellate review.


            PROVISION OF MARKERS FOR PRIVATELY MARKED GRAVES

     Current Law
       Section 502 of Public Law 107-103, the Veterans Education 
     and Benefits Expansion Act of 2001, authorizes VA to furnish 
     a government headstone or marker for the grave of an eligible 
     veteran buried in a non-veterans' cemetery irrespective of 
     whether the grave was already marked with a private marker. 
     The law applies to veterans whose deaths occurred on or after 
     December 27, 2001. Public Law 107-330 extended this authority 
     to include deaths occurring on or after September 11, 2001.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 204 of S. 1132, as amended, would amend the 
     Veterans Education and Benefits Expansion Act of 2001 to 
     authorize VA to furnish a government headstone or marker for 
     the grave of an eligible veteran buried in a private 
     cemetery, irrespective of whether the grave was already 
     marked with a private marker, for deaths occurring on or 
     after November 1, 1990.


 TERMINATION OF AUTHORITY TO GUARANTEE LOANS TO PURCHASE MANUFACTURED 
                             HOMES AND LOTS

     Current Law
       Section 3712 of title 38, United States Code, authorizes VA 
     to guarantee loans for the purchase of a manufactured home 
     and a lot on which it is sited.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 306 of S. 1132, as amended, would eliminate VA's 
     authority to guarantee loans to purchase a manufactured home 
     and the lot on which it is sited.


   REINSTATEMENT OF VETERANS VOCATIONAL TRAINING PROGRAM FOR CERTAIN 
                           PENSION RECIPIENTS

     Current Law
       Section 1524 of title 38, United States Code, authorized a 
     pilot program of vocational training to certain nonservice-
     connected pension recipients. The initial pilot program was 
     in place from February 1, 1985, through January 31, 1992. 
     Public Law 102-562 extended the program through December 31, 
     1995.
     House Bill
       Section 9 of H.R. 2297, as amended, would reinstate the VA 
     pilot program for five years beginning on the date of 
     enactment to provide vocational training to newly eligible VA 
     nonservice-connected pension recipients. The program would be 
     open to those veterans age 45 years or younger. The 
     Department of Veterans Affairs would be required to ensure 
     that the availability of vocational training is made known 
     through various outreach methods. Not later than two years 
     after the date of enactment, and each year thereafter, the 
     Secretary would be required to submit to the Committees on 
     Veterans' Affairs of the Senate and the House of 
     Representatives a report on the operation of the pilot 
     program. The report would include an evaluation of the 
     vocational training provided, an analysis of the cost-
     effectiveness of the training provided, and data on the 
     entered-employment rate of veterans participating in the 
     program.
     Senate Bill
       The Senate Bill contains no comparable provision.


         THREE-YEAR EXTENSION OF INCOME VERIFICATION AUTHORITY

     Current Law
       Section 5317 of title 38, United States Code, directs VA to 
     notify applicants for needs-based VA benefits that 
     information collected from the applicants may be compared 
     with income-related information obtained by VA from the 
     Internal Revenue Service and the Department of Health and 
     Human Services. The authority of the Secretary of Veterans 
     Affairs to obtain such information expires on September 30, 
     2008.
       Section 6103(l)(7)(D)(viii) of the Internal Revenue Code 
     authorizes the release of income information by the Internal 
     Revenue Service to VA. This authority expires on September 
     30, 2008.
     House Bill
       The House Bill contains no comparable provision.
     Senate Bill
       Section 312 of S. 1132, as amended, would extend until 
     September 30, 2011, the authority of the Secretary to obtain 
     income information under section 5317 of title 38, United 
     States Code, and the authority of the Internal Revenue 
     Service to share income information under section 
     6103(l)(7)(D)(viii) of the Internal Revenue Code.

  Mr. GRAHAM of Florida. Madam President, as Ranking Member of the 
Committee on Veterans' Affairs, I urge the Senate to pass H.R. 2297, 
the proposed Veterans Benefits Act of 2003.
  The pending measure, which I will refer to as the ``Compromise 
Agreement,'' is the final version of an omnibus bill. This Compromise 
Agreement would improve a variety of veterans' benefits, most 
significantly for the survivors of those who lose their lives on active 
duty, or who die of their service-connected conditions. It is entirely 
appropriate that, at a time when we have called our servicemembers into 
harm's way, we should extend not only our sympathies but critical 
assistance to the families left behind by those who have made the 
ultimate sacrifice.
  I will briefly highlight some of the most important provisions, and 
refer my colleagues seeking more detail to the Joint Explanatory 
Statement accompanying the bill. I thank Chairman 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 staffs to craft 
this agreement.
  While this Compromise Agreement enhances many veterans' benefits, it 
focuses particularly on meeting the needs of survivors. I am gratified 
that Congress plans to increase the rate of educational benefits for 
survivors and dependents of veterans. This bill would raise education 
benefits by 13.4 percent over current levels--to $788 per month from 
$695 for full-time study--creating parity with the benefits that the 
Nation provides to active-duty servicemembers. Family members who have 
already faced the loss of a father, mother, husband, or wife in 
service, or who have helped a servicemember endure total disability, 
should not have to face limited educational opportunities and fragile 
futures due to resulting financial hardships.
  I am very pleased that we have continued to build upon legislation of 
the past two years to assist the surviving spouses of servicemembers. 
In 2001, Congress passed legislation to allow survivors of severely 
disabled veterans to continue receiving VA healthcare coverage through 
the program called CHAMPVA after age 65. Congress extended this 
coverage last year, allowing 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 remarried 
after age 55. This year, the committees have agreed to allow the 
surviving spouses to retain survivors' benefits--Dependency and 
Indemnity Compensation, education allowance and home loan--if they 
remarry after the age of 57, placing these spouses on the same footing 
as those in other Federal survivorship programs.
  The committees were also mindful of those who must live with the 
possible health consequences of a parent's service. Recent scientific 
evidence has suggested an association between exposure to dioxin, a 
toxic chemical found in the herbicide Agent Orange, and an increased 
risk of the birth defect spina bifida in children born to those 
exposed. In 1996, Congress authorized VA to provide benefits to 
children with spina bifida whose fathers or mothers served in the 
Republic of Vietnam and might have been exposed to Agent Orange. The 
Compromise Agreement would extend theses same benefits to affected 
children whose parents served in or near the Korean Demilitarized Zone 
during the Vietnam era, where

[[Page 29620]]

Agent Orange was also used a defoliant.
  I am pleased that the Compromise Agreement also addresses the 
enduring, and sometimes invisible, scars of war. Recognizing the long-
term effects of prolonged malnutrition and confinement, current law 
specifies a list of 15 disabilities that VA presumes are related to 
military service of former prisoners of war who were held captive 30 
days or more. This legislation would eliminate the 30-day requirement 
for certain physical and mental disorders that could result from as 
little as a day of captivity. It would also add cirrhosis of the liver 
to the list of presumptively service-connected disabilities for those 
former POWs who were held captive for at least 30 days, as peer-
reviewed studies have shown that former POWs have a higher incidence of 
this debilitating disease.
  Another group of veterans who struggle with potential long-term 
health consequences are those who were exposed to significant doses of 
ionizing radiation, particularly in post-war Japan and during 
subsequent nuclear testing. Nearly 20 years ago, Congress mandated that 
veterans who suffered from illnesses they believed were caused by such 
radiation could request that VA ``reconstruct'' the actual dose of 
radiation that they received during service. A panel of experts 
convened by the National Academy of Sciences reported that the 
contractor-operated program established by the VA to produce this data 
for veterans suffered from a shockingly cavalier approach to quality 
assurance, resulting in data that failed to meet the standards assumed 
by both VA and veterans. The Compromise Agreement would require VA and 
DOD to establish an advisory board to oversee this dose reconstruction 
program's mission, procedures, and administration to ensure that it 
collects and interprets data adequately and fairly.
  Congress required the Air Force to conduct a long-term 
epidemiological study of the veterans of Operation Ranch Hand, the unit 
responsible for aerial spraying of herbicides during the Vietnam War. 
This study is about to conclude, and experts agree that both samples 
and data could still provide key data for many unanswered questions. 
The Compromise Agreement would direct VA to enter into an agreement 
with the National Academy of Sciences to advise whether the study 
should be continued, describe the steps that would be involved in doing 
so, and evaluate the advisability of making laboratory specimens from 
the study available for independent research.
  Finally, the Compromise Agreement would ensure that the core funding 
for the Medical Follow-Up Agency (MFUA) would be extended for 10 more 
years. MFUA uses this funding to update, maintain, and improve long-
term epidemiological studies of military and veterans' populations. 
Congress, VA, military, and independent scientists have relied on MFUA 
data since World War II to evaluate whether specific exposures might 
have long-term health effects that suggest a need for benefits, new 
treatments, or further research.
  Together, all of these provisions demonstrate that our nation will 
continue its commitment to those veterans who carry the burdens of the 
battlefield--whether obvious or invisible--long after the end of the 
fight.
  In conclusion, I want to thank Senator Specter and his benefits staff 
for their work on this comprehensive bill, specifically Bill Tuerk, Jon 
Towers and Chris McNamee, as well as my benefits staff--Mary Schoelen, 
Tandy Barrett, Ted Pusey, Amanda Krohn, and Faiz Shakir, along with 
Julie Fischer, who recently left the committee, and Patrick Stone, who 
has recently joined it. I urge my colleagues to support this important 
piece of legislation for our Nation's veterans and their families.
  Mr. THOMAS. Madam President, I ask unanimous consent that the 
substitute amendment which is at the desk be agreed 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 amendment (No. 2205) in the nature of a substitute was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The bill (H.R. 2297), as amended, was read the third time and passed.
  Mr. THOMAS. I yield the floor.

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