[Congressional Record (Bound Edition), Volume 150 (2004), Part 16]
[Senate]
[Pages 22058-22070]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4043. Mr. INOUYE (for himself and Mr. Akaka) submitted an 
amendment intended to be proposed by him to the bill S. 437, to provide 
for adjustments to the Central Arizona Project in Arizona, to authorize 
the Gila River Indian Community water rights settlement, to reauthorize 
and amend the Southern Arizona Water Rights Settlement of 1982, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

          TITLE __--NATIVE HAWAIIAN GOVERNMENT REORGANIZATION

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Native Hawaiian Government 
     Reorganization Act of 2004''.

     SEC. __02. FINDINGS.

       Congress finds that--
       (1) the Constitution vests Congress with the authority to 
     address the conditions of the indigenous, native people of 
     the United States;
       (2) Native Hawaiians, the native people of the Hawaiian 
     archipelago that is now part of the United States, are 
     indigenous, native people of the United States;
       (3) the United States has a special political and legal 
     responsibility to promote the welfare of the native people of 
     the United States, including Native Hawaiians;
       (4) under the treaty making power of the United States, 
     Congress exercised its constitutional authority to confirm 
     treaties between the United States and the Kingdom of Hawaii, 
     and from 1826 until 1893, the United States--
       (A) recognized the sovereignty of the Kingdom of Hawaii;
       (B) accorded full diplomatic recognition to the Kingdom of 
     Hawaii; and
       (C) entered into treaties and conventions with the Kingdom 
     of Hawaii to govern commerce and navigation in 1826, 1842, 
     1849, 1875, and 1887;
       (5) pursuant to the Hawaiian Homes Commission Act, 1920 (42 
     Stat. 108, chapter 42), the United States set aside 
     approximately 203,500 acres of land to address the conditions 
     of Native Hawaiians in the Federal territory that later 
     became the State of Hawaii;
       (6) by setting aside 203,500 acres of land for Native 
     Hawaiian homesteads and farms, the Hawaiian Homes Commission 
     Act assists the members of the Native Hawaiian community in 
     maintaining distinct native settlements throughout the State 
     of Hawaii;
       (7) approximately 6,800 Native Hawaiian families reside on 
     the Hawaiian Home Lands and approximately 18,000 Native 
     Hawaiians who are eligible to reside on the Hawaiian Home 
     Lands are on a waiting list to receive assignments of 
     Hawaiian Home Lands;
       (8)(A) in 1959, as part of the compact with the United 
     States admitting Hawaii into the Union, Congress established 
     a public trust (commonly known as the ``ceded lands trust''), 
     for 5 purposes, 1 of which is the betterment of the 
     conditions of Native Hawaiians;
       (B) the public trust consists of lands, including submerged 
     lands, natural resources, and the revenues derived from the 
     lands; and
       (C) the assets of this public trust have never been 
     completely inventoried or segregated;
       (9) Native Hawaiians have continuously sought access to the 
     ceded lands in order to establish and maintain native 
     settlements and distinct native communities throughout the 
     State;
       (10) the Hawaiian Home Lands and other ceded lands provide 
     an important foundation for the ability of the Native 
     Hawaiian community to maintain the practice of Native 
     Hawaiian culture, language, and traditions, and for the 
     survival and economic self-sufficiency of the Native Hawaiian 
     people;
       (11) Native Hawaiians continue to maintain other distinctly 
     native areas in Hawaii;
       (12) on November 23, 1993, Public Law 103-150 (107 Stat. 
     1510) (commonly known as the ``Apology Resolution'') was 
     enacted into law, extending an apology on behalf of the 
     United States to the native people of Hawaii for the United 
     States' role in the overthrow of the Kingdom of Hawaii;
       (13) the Apology Resolution acknowledges that the overthrow 
     of the Kingdom of Hawaii occurred with the active 
     participation of agents and citizens of the United States and 
     further acknowledges that the Native Hawaiian people never 
     directly relinquished to the United States their claims to 
     their inherent sovereignty as a people over their national 
     lands, either through the Kingdom of Hawaii or through a 
     plebiscite or referendum;

[[Page 22059]]

       (14) the Apology Resolution expresses the commitment of 
     Congress and the President--
       (A) to acknowledge the ramifications of the overthrow of 
     the Kingdom of Hawaii;
       (B) to support reconciliation efforts between the United 
     States and Native Hawaiians; and
       (C) to consult with Native Hawaiians on the reconciliation 
     process as called for in the Apology Resolution;
       (15) despite the overthrow of the government of the Kingdom 
     of Hawaii, Native Hawaiians have continued to maintain their 
     separate identity as a distinct native community through 
     cultural, social, and political institutions, and to give 
     expression to their rights as native people to self-
     determination, self-governance, and economic self-
     sufficiency;
       (16) Native Hawaiians have also given expression to their 
     rights as native people to self-determination, self-
     governance, and economic self-sufficiency--
       (A) through the provision of governmental services to 
     Native Hawaiians, including the provision of--
       (i) health care services;
       (ii) educational programs;
       (iii) employment and training programs;
       (iv) economic development assistance programs;
       (v) children's services;
       (vi) conservation programs;
       (vii) fish and wildlife protection;
       (viii) agricultural programs;
       (ix) native language immersion programs;
       (x) native language immersion schools from kindergarten 
     through high school;
       (xi) college and master's degree programs in native 
     language immersion instruction;
       (xii) traditional justice programs, and
       (B) by continuing their efforts to enhance Native Hawaiian 
     self-determination and local control;
       (17) Native Hawaiians are actively engaged in Native 
     Hawaiian cultural practices, traditional agricultural 
     methods, fishing and subsistence practices, maintenance of 
     cultural use areas and sacred sites, protection of burial 
     sites, and the exercise of their traditional rights to gather 
     medicinal plants and herbs, and food sources;
       (18) the Native Hawaiian people wish to preserve, develop, 
     and transmit to future generations of Native Hawaiians their 
     lands and Native Hawaiian political and cultural identity in 
     accordance with their traditions, beliefs, customs and 
     practices, language, and social and political institutions, 
     to control and manage their own lands, including ceded lands, 
     and to achieve greater self-determination over their own 
     affairs;
       (19) this title provides a process within the framework of 
     Federal law for the Native Hawaiian people to exercise their 
     inherent rights as a distinct, indigenous, native community 
     to reorganize a Native Hawaiian governing entity for the 
     purpose of giving expression to their rights as native people 
     to self-determination and self-governance;
       (20) Congress--
       (A) has declared that the United States has a special 
     responsibility for the welfare of the native peoples of the 
     United States, including Native Hawaiians;
       (B) has identified Native Hawaiians as a distinct group of 
     indigenous, native people of the United States within the 
     scope of its authority under the Constitution, and has 
     enacted scores of statutes on their behalf; and
       (C) has delegated broad authority to the State of Hawaii to 
     administer some of the United States' responsibilities as 
     they relate to the Native Hawaiian people and their lands;
       (21) the United States has recognized and reaffirmed the 
     special political and legal relationship with the Native 
     Hawaiian people through the enactment of the Act entitled, 
     ``An Act to provide for the admission of the State of Hawaii 
     into the Union'', approved March 18, 1959 (Public Law 86-3; 
     73 Stat. 4), by--
       (A) ceding to the State of Hawaii title to the public lands 
     formerly held by the United States, and mandating that those 
     lands be held as a public trust for 5 purposes, 1 of which is 
     for the betterment of the conditions of Native Hawaiians; and
       (B) transferring the United States' responsibility for the 
     administration of the Hawaiian Home Lands to the State of 
     Hawaii, but retaining the authority to enforce the trust, 
     including the exclusive right of the United States to consent 
     to any actions affecting the lands that comprise the corpus 
     of the trust and any amendments to the Hawaiian Homes 
     Commission Act, 1920 (42 Stat. 108, chapter 42) that are 
     enacted by the legislature of the State of Hawaii affecting 
     the beneficiaries under the Act;
       (22) the United States has continually recognized and 
     reaffirmed that--
       (A) Native Hawaiians have a cultural, historic, and land-
     based link to the aboriginal, indigenous, native people who 
     exercised sovereignty over the Hawaiian Islands;
       (B) Native Hawaiians have never relinquished their claims 
     to sovereignty or their sovereign lands;
       (C) the United States extends services to Native Hawaiians 
     because of their unique status as the indigenous, native 
     people of a once-sovereign nation with whom the United States 
     has a political and legal relationship; and
       (D) the special trust relationship of American Indians, 
     Alaska Natives, and Native Hawaiians to the United States 
     arises out of their status as aboriginal, indigenous, native 
     people of the United States; and
       (23) the State of Hawaii supports the reaffirmation of the 
     political and legal relationship between the Native Hawaiian 
     governing entity and the United States as evidenced by 2 
     unanimous resolutions enacted by the Hawaii State Legislature 
     in the 2000 and 2001 sessions of the Legislature and by the 
     testimony of the Governor of the State of Hawaii before the 
     Committee on Indian Affairs of the Senate on February 25, 
     2003.

     SEC. __03. DEFINITIONS.

       In this title:
       (1) Aboriginal, indigenous, native people.--The term 
     ``aboriginal, indigenous, native people'' means people whom 
     Congress has recognized as the original inhabitants of the 
     lands that later became part of the United States and who 
     exercised sovereignty in the areas that later became part of 
     the United States.
       (2) Adult member.--The term ``adult member'' means a Native 
     Hawaiian who has attained the age of 18 and who elects to 
     participate in the reorganization of the Native Hawaiian 
     governing entity.
       (3) Apology resolution.--The term ``Apology Resolution'' 
     means Public Law 103-150, (107 Stat. 1510), a Joint 
     Resolution extending an apology to Native Hawaiians on behalf 
     of the United States for the participation of agents of the 
     United States in the January 17, 1893 overthrow of the 
     Kingdom of Hawaii.
       (4) Commission.--The term ``commission'' means the 
     Commission established under section 207(b) to provide for 
     the certification that those adult members of the Native 
     Hawaiian community listed on the roll meet the definition of 
     Native Hawaiian set forth in section 203(8).
       (5) Council.--The term ``council'' means the Native 
     Hawaiian Interim Governing Council established under section 
     207(c)(2).
       (6) Indigenous, native people.--The term ``indigenous, 
     native people'' means the lineal descendants of the 
     aboriginal, indigenous, native people of the United States.
       (7) Interagency coordinating group.--The term ``Interagency 
     Coordinating Group'' means the Native Hawaiian Interagency 
     Coordinating Group established under section 206.
       (8) Native hawaiian.--For the purpose of establishing the 
     roll authorized under section 207(c)(1) and before the 
     reaffirmation of the political and legal relationship between 
     the United States and the Native Hawaiian governing entity, 
     the term ``Native Hawaiian'' means--
       (A) an individual who is one of the indigenous, native 
     people of Hawaii and who is a direct lineal descendant of the 
     aboriginal, indigenous, native people who--
       (i) resided in the islands that now comprise the State of 
     Hawaii on or before January 1, 1893; and
       (ii) occupied and exercised sovereignty in the Hawaiian 
     archipelago, including the area that now constitutes the 
     State of Hawaii; or
       (B) an individual who is one of the indigenous, native 
     people of Hawaii and who was eligible in 1921 for the 
     programs authorized by the Hawaiian Homes Commission Act (42 
     Stat. 108, chapter 42) or a direct lineal descendant of that 
     individual.
       (9) Native hawaiian governing entity.--The term ``Native 
     Hawaiian Governing Entity'' means the governing entity 
     organized by the Native Hawaiian people pursuant to this 
     title.
       (10) Office.--The term ``Office'' means the United States 
     Office for Native Hawaiian Relations established under 
     section 205(a).
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. __04. UNITED STATES POLICY AND PURPOSE.

       (a) Policy.--The United States reaffirms that--
       (1) Native Hawaiians are a unique and distinct, indigenous, 
     native people with whom the United States has a special 
     political and legal relationship;
       (2) the United States has a special political and legal 
     relationship with the Native Hawaiian people which includes 
     promoting the welfare of Native Hawaiians;
       (3) Congress possesses the authority under the 
     Constitution, including but not limited to Article I, section 
     8, clause 3, to enact legislation to address the conditions 
     of Native Hawaiians and has exercised this authority through 
     the enactment of--
       (A) the Hawaiian Homes Commission Act, 1920 (42 Stat. 108, 
     chapter 42);
       (B) the Act entitled ``An Act to provide for the admission 
     of the State of Hawaii into the Union'', approved March 18, 
     1959 (Public Law 86-3, 73 Stat. 4); and
       (C) more than 150 other Federal laws addressing the 
     conditions of Native Hawaiians;
       (4) Native Hawaiians have--
       (A) an inherent right to autonomy in their internal 
     affairs;
       (B) an inherent right of self-determination and self-
     governance;
       (C) the right to reorganize a Native Hawaiian governing 
     entity; and
       (D) the right to become economically self-sufficient; and

[[Page 22060]]

       (5) the United States shall continue to engage in a process 
     of reconciliation and political relations with the Native 
     Hawaiian people.
       (b) Purpose.--The purpose of this title is to provide a 
     process for the reorganization of the Native Hawaiian 
     governing entity and the reaffirmation of the political and 
     legal relationship between the United States and the Native 
     Hawaiian governing entity for purposes of continuing a 
     government-to-government relationship.

     SEC. __05. UNITED STATES OFFICE FOR NATIVE HAWAIIAN 
                   RELATIONS.

       (a) Establishment.--There is established within the Office 
     of the Secretary the United States Office for Native Hawaiian 
     Relations.
       (b) Duties.--The Office shall--
       (1) continue the process of reconciliation with the Native 
     Hawaiian people in furtherance of the Apology Resolution;
       (2) upon the reaffirmation of the political and legal 
     relationship between the Native Hawaiian governing entity and 
     the United States, effectuate and coordinate the special 
     political and legal relationship between the Native Hawaiian 
     governing entity and the United States through the Secretary, 
     and with all other Federal agencies;
       (3) fully integrate the principle and practice of 
     meaningful, regular, and appropriate consultation with the 
     Native Hawaiian governing entity by providing timely notice 
     to, and consulting with, the Native Hawaiian people and the 
     Native Hawaiian governing entity before taking any actions 
     that may have the potential to significantly affect Native 
     Hawaiian resources, rights, or lands;
       (4) consult with the Interagency Coordinating Group, other 
     Federal agencies, the Governor of the State of Hawaii and 
     relevant agencies of the State of Hawaii on policies, 
     practices, and proposed actions affecting Native Hawaiian 
     resources, rights, or lands; and
       (5) prepare and submit to the Committee on Indian Affairs 
     and the Committee on Energy and Natural Resources of the 
     Senate and the Committee on Resources of the House of 
     Representatives an annual report detailing the activities of 
     the Interagency Coordinating Group that are undertaken with 
     respect to the continuing process of reconciliation and to 
     effect meaningful consultation with the Native Hawaiian 
     governing entity and providing recommendations for any 
     necessary changes to Federal law or regulations promulgated 
     under the authority of Federal law.

     SEC. __06. NATIVE HAWAIIAN INTERAGENCY COORDINATING GROUP.

       (a) Establishment.--In recognition that Federal programs 
     authorized to address the conditions of Native Hawaiians are 
     largely administered by Federal agencies other than the 
     Department of the Interior, there is established an 
     interagency coordinating group to be known as the ``Native 
     Hawaiian Interagency Coordinating Group''.
       (b) Composition.--The Interagency Coordinating Group shall 
     be composed of officials, to be designated by the President, 
     from--
       (1) each Federal agency that administers Native Hawaiian 
     programs, establishes or implements policies that affect 
     Native Hawaiians, or whose actions may significantly or 
     uniquely impact Native Hawaiian resources, rights, or lands; 
     and
       (2) the Office.
       (c) Lead Agency.--
       (1) In general.--The Department of the Interior shall serve 
     as the lead agency of the Interagency Coordinating Group.
       (2) Meetings.--The Secretary shall convene meetings of the 
     Interagency Coordinating Group.
       (d) Duties.--The Interagency Coordinating Group shall--
       (1) coordinate Federal programs and policies that affect 
     Native Hawaiians or actions by any agency or agencies of the 
     Federal Government that may significantly or uniquely affect 
     Native Hawaiian resources, rights, or lands;
       (2) ensure that each Federal agency develops a policy on 
     consultation with the Native Hawaiian people, and upon the 
     reaffirmation of the political and legal relationship between 
     the Native Hawaiian governing entity and the United States, 
     consultation with the Native Hawaiian governing entity; and
       (3) ensure the participation of each Federal agency in the 
     development of the report to Congress authorized in section 
     205(b)(5).

     SEC. __07. PROCESS FOR THE REORGANIZATION OF THE NATIVE 
                   HAWAIIAN GOVERNING ENTITY AND THE REAFFIRMATION 
                   OF THE POLITICAL AND LEGAL RELATIONSHIP BETWEEN 
                   THE UNITED STATES AND THE NATIVE HAWAIIAN 
                   GOVERNING ENTITY.

       (a) Recognition of the Native Hawaiian Governing Entity.--
     The right of the Native Hawaiian people to reorganize the 
     Native Hawaiian governing entity to provide for their common 
     welfare and to adopt appropriate organic governing documents 
     is recognized by the United States.
       (b) Commission.--
       (1) In general.--There is authorized to be established a 
     Commission to be composed of nine members for the purposes 
     of--
       (A) preparing and maintaining a roll of the adult members 
     of the Native Hawaiian community who elect to participate in 
     the reorganization of the Native Hawaiian governing entity; 
     and
       (B) certifying that the adult members of the Native 
     Hawaiian community proposed for inclusion on the roll meet 
     the definition of Native Hawaiian in section 203(8).
       (2) Membership.--
       (A) Appointment.--Within 180 days of the date of enactment 
     of this Act, the Secretary shall appoint the members of the 
     Commission in accordance with subclause (B). Any vacancy on 
     the Commission shall not affect its powers and shall be 
     filled in the same manner as the original appointment.
       (B) Requirements.--The members of the Commission shall be 
     Native Hawaiian, as defined in section 203(8), and shall have 
     expertise in the determination of Native Hawaiian ancestry 
     and lineal descend-
     ancy.
       (3) Expenses.--Each member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (4) Duties.--The Commission shall--
       (A) prepare and maintain a roll of the adult members of the 
     Native Hawaiian community who elect to participate in the 
     reorganization of the Native Hawaiian governing entity; and
       (B) certify that each of the adult members of the Native 
     Hawaiian community proposed for inclusion on the roll meets 
     the definition of Native Hawaiian in section 203(8).
       (5) Staff.--
       (A) In general.--The Commission may, without regard to the 
     civil service laws (including regulations), appoint and 
     terminate an executive director and such other additional 
     personnel as are necessary to enable the Commission to 
     perform the duties of the Commission.
       (B) Compensation.--
       (i) In general.--Except as provided in clause (ii), the 
     Commission may fix the compensation of the executive director 
     and other personnel without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of title 5, 
     United States Code, relating to classification of positions 
     and General Schedule pay rates.
       (ii) Maximum rate of pay.--The rate of pay for the 
     executive director and other personnel shall not exceed the 
     rate payable for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       (6) Detail of federal government employees.--
       (A) In general.--An employee of the Federal Government may 
     be detailed to the Commission without reimbursement.
       (B) Civil service status.--The detail of the employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (7) Procurement of temporary and intermittent services.--
     The Commission may procure temporary and intermittent 
     services in accordance with section 3109(b) of title 5, 
     United States Code, at rates for individuals that do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of that title.
       (8) Expiration.--The Secretary shall dissolve the 
     Commission upon the reaffirmation of the political and legal 
     relationship between the Native Hawaiian governing entity and 
     the United States.
       (c) Process for the Reorganization of the Native Hawaiian 
     Governing Entity.--
       (1) Roll.--
       (A) Contents.--The roll shall include the names of the 
     adult members of the Native Hawaiian community who elect to 
     participate in the reorganization of the Native Hawaiian 
     governing entity and are certified to be Native Hawaiian as 
     defined in section 203(8) by the Commission.
       (B) Formation of roll.--Each adult member of the Native 
     Hawaiian community who elects to participate in the 
     reorganization of the Native Hawaiian governing entity shall 
     submit to the Commission documentation in the form 
     established by the Commission that is sufficient to enable 
     the Commission to determine whether the individual meets the 
     definition of Native Hawaiian in section 203(8).
       (C) Documentation.--The Commission shall--
       (i) identify the types of documentation that may be 
     submitted to the Commission that would enable the Commission 
     to determine whether an individual meets the definition of 
     Native Hawaiian in section 203(8);
       (ii) establish a standard format for the submission of 
     documentation; and
       (iii) publish information related to clauses (i) and (ii) 
     in the Federal Register;
       (D) Consultation.--In making determinations that each of 
     the adult members of the Native Hawaiian community proposed 
     for inclusion on the roll meets the definition of Native 
     Hawaiian in section 203(8), the Commission may consult with 
     Native Hawaiian organizations, agencies of the State of 
     Hawaii including but not limited to the Department of 
     Hawaiian Home Lands, the Office of Hawaiian Affairs, and the 
     State Department of Health, and other entities with expertise 
     and experience in the determination of Native Hawaiian 
     ancestry and lineal descendancy.
       (E) Certification and submittal of roll to secretary.--The 
     Commission shall--
       (i) submit the roll containing the names of the adult 
     members of the Native Hawaiian

[[Page 22061]]

     community who meet the definition of Native Hawaiian in 
     section 203(8) to the Secretary within two years from the 
     date on which the Commission is fully composed; and
       (ii) certify to the Secretary that each of the adult 
     members of the Native Hawaiian community proposed for 
     inclusion on the roll meets the definition of Native Hawaiian 
     in section 203(8).
       (F) Publication.--Upon certification by the Commission to 
     the Secretary that those listed on the roll meet the 
     definition of Native Hawaiian in section 203(8), the 
     Secretary shall publish the roll in the Federal Register.
       (G) Appeal.--The Secretary may establish a mechanism for an 
     appeal for any person whose name is excluded from the roll 
     who claims to meet the definition of Native Hawaiian in 
     section 203(8) and to be 18 years of age or older.
       (H) Publication; update.--The Secretary shall--
       (i) publish the roll regardless of whether appeals are 
     pending;
       (ii) update the roll and the publication of the roll on the 
     final disposition of any appeal;
       (iii) update the roll to include any Native Hawaiian who 
     has attained the age of 18 and who has been certified by the 
     Commission as meeting the definition of Native Hawaiian in 
     section 203(8) after the initial publication of the roll or 
     after any subsequent publications of the roll.
       (I) Failure to act.--If the Secretary fails to publish the 
     roll, not later than 90 days after the date on which the roll 
     is submitted to the Secretary, the Commission shall publish 
     the roll notwithstanding any order or directive issued by the 
     Secretary or any other official of the Department of the 
     Interior to the contrary.
       (J) Effect of publication.--The publication of the initial 
     and updated roll shall serve as the basis for the eligibility 
     of adult members of the Native Hawaiian community whose names 
     are listed on those rolls to participate in the 
     reorganization of the Native Hawaiian governing entity.
       (2) Organization of the native hawaiian interim governing 
     council.--
       (A) Organization.--The adult members of the Native Hawaiian 
     community listed on the roll published under this section 
     may--
       (i) develop criteria for candidates to be elected to serve 
     on the Native Hawaiian Interim Governing Council;
       (ii) determine the structure of the Council; and
       (iii) elect members from individuals listed on the roll 
     published under this subsection to the Council.
       (B) Powers.--
       (i) In general.--The Council--

       (I) may represent those listed on the roll published under 
     this section in the implementation of this title; and
       (II) shall have no powers other than powers given to the 
     Council under this title.

       (ii) Funding.--The Council may enter into a contract with, 
     or obtain a grant from, any Federal or State agency to carry 
     out clause (iii).
       (iii) Activities.--

       (I) In general.--The Council may conduct a referendum among 
     the adult members of the Native Hawaiian community listed on 
     the roll published under this subsection for the purpose of 
     determining the proposed elements of the organic governing 
     documents of the Native Hawaiian governing entity, including 
     but not limited to--

       (aa) the proposed criteria for citizenship of the Native 
     Hawaiian governing entity;
       (bb) the proposed powers and authorities to be exercised by 
     the Native Hawaiian governing entity, as well as the proposed 
     privileges and immunities of the Native Hawaiian governing 
     entity;
       (cc) the proposed civil rights and protection of the rights 
     of the citizens of the Native Hawaiian governing entity and 
     all persons affected by the exercise of governmental powers 
     and authorities of the Native Hawaiian governing entity; and
       (dd) other issues determined appropriate by the Council.

       (II) Development of organic governing documents.--Based on 
     the referendum, the Council may develop proposed organic 
     governing documents for the Native Hawaiian governing entity.
       (III) Distribution.--The Council may distribute to all 
     adult members of the Native Hawaiian community listed on the 
     roll published under this subsection--

       (aa) a copy of the proposed organic governing documents, as 
     drafted by the Council; and
       (bb) a brief impartial description of the proposed organic 
     governing documents;

       (IV) Elections.--The Council may hold elections for the 
     purpose of ratifying the proposed organic governing 
     documents, and on certification of the organic governing 
     documents by the Secretary in accordance with paragraph (4), 
     hold elections of the officers of the Native Hawaiian 
     governing entity pursuant to paragraph (5).

       (3) Submittal of organic governing documents.--Following 
     the reorganization of the Native Hawaiian governing entity 
     and the adoption of organic governing documents, the Council 
     shall submit the organic governing documents of the Native 
     Hawaiian governing entity to the Secretary.
       (4) Certifications.--
       (A) In general.--Within the context of the future 
     negotiations to be conducted under the authority of section 
     208(b)(1), and the subsequent actions by the Congress and the 
     State of Hawaii to enact legislation to implement the 
     agreements of the 3 governments, not later than 90 days after 
     the date on which the Council submits the organic governing 
     documents to the Secretary, the Secretary shall certify that 
     the organic governing documents--
       (i) establish the criteria for citizenship in the Native 
     Hawaiian governing entity;
       (ii) were adopted by a majority vote of the adult members 
     of the Native Hawaiian community whose names are listed on 
     the roll published by the Secretary;
       (iii) provide authority for the Native Hawaiian governing 
     entity to negotiate with Federal, State, and local 
     governments, and other entities;
       (iv) provide for the exercise of governmental authorities 
     by the Native Hawaiian governing entity, including any 
     authorities that may be delegated to the Native Hawaiian 
     governing entity by the United States and the State of Hawaii 
     following negotiations authorized in section 208(b)(1) and 
     the enactment of legislation to implement the agreements of 
     the 3 governments;
       (v) prevent the sale, disposition, lease, or encumbrance of 
     lands, interests in lands, or other assets of the Native 
     Hawaiian governing entity without the consent of the Native 
     Hawaiian governing entity;
       (vi) provide for the protection of the civil rights of the 
     citizens of the Native Hawaiian governing entity and all 
     persons affected by the exercise of governmental powers and 
     authorities by the Native Hawaiian governing entity; and
       (vii) are consistent with applicable Federal law and the 
     special political and legal relationship between the United 
     States and the indigenous, native people of the United 
     States; provided that the provisions of Public Law 103-454, 
     25 U.S.C. 479a, shall not apply.
       (B) Resubmission in case of noncompliance with the 
     requirements of subparagraph (A).--
       (i) Resubmission by the secretary.--If the Secretary 
     determines that the organic governing documents, or any part 
     of the documents, do not meet all of the requirements set 
     forth in subparagraph (A), the Secretary shall resubmit the 
     organic governing documents to the Council, along with a 
     justification for each of the Secretary's findings as to why 
     the provisions are not in full compliance.
       (ii) Amendment and resubmission of organic governing 
     documents.--If the organic governing documents are 
     resubmitted to the Council by the Secretary under clause (i), 
     the Council shall--

       (I) amend the organic governing documents to ensure that 
     the documents meet all the requirements set forth in 
     subparagraph (A); and
       (II) resubmit the amended organic governing documents to 
     the Secretary for certification in accordance with this 
     paragraph.

       (C) Certifications deemed made.--The certifications under 
     paragraph (4) shall be deemed to have been made if the 
     Secretary has not acted within 90 days after the date on 
     which the Council has submitted the organic governing 
     documents of the Native Hawaiian governing entity to the 
     Secretary.
       (5) Elections.--On completion of the certifications by the 
     Secretary under paragraph (4), the Council may hold elections 
     of the officers of the Native Hawaiian governing entity.
       (6) Reaffirmation.--Notwithstanding any other provision of 
     law, upon the certifications required under paragraph (4) and 
     the election of the officers of the Native Hawaiian governing 
     entity, the political and legal relationship between the 
     United States and the Native Hawaiian governing entity is 
     hereby reaffirmed and the United States extends Federal 
     recognition to the Native Hawaiian governing entity as the 
     representative governing body of the Native Hawaiian people.

     SEC. __08. REAFFIRMATION OF DELEGATION OF FEDERAL AUTHORITY; 
                   NEGOTIATIONS; CLAIMS.

       (a) Reaffirmation.--The delegation by the United States of 
     authority to the State of Hawaii to address the conditions of 
     the indigenous, native people of Hawaii contained in the Act 
     entitled ``An Act to provide for the admission of the State 
     of Hawaii into the Union'' approved March 18, 1959 (Public 
     Law 86-3, 73 Stat. 5), is reaffirmed.
       (b) Negotiations.--
       (1) In general.--Upon the reaffirmation of the political 
     and legal relationship between the United States and the 
     Native Hawaiian governing entity, the United States and the 
     State of Hawaii may enter into negotiations with the Native 
     Hawaiian governing entity designed to lead to an agreement 
     addressing such matters as--
       (A) the transfer of lands, natural resources, and other 
     assets, and the protection of existing rights related to such 
     lands or resources;
       (B) the exercise of governmental authority over any 
     transferred lands, natural resources, and other assets, 
     including land use;
       (C) the exercise of civil and criminal jurisdiction;

[[Page 22062]]

       (D) the delegation of governmental powers and authorities 
     to the Native Hawaiian governing entity by the United States 
     and the State of Hawaii; and
       (E) any residual responsibilities of the United States and 
     the State of Hawaii.
       (2) Amendments to existing laws.--Upon agreement on any 
     matter or matters negotiated with the United States, the 
     State of Hawaii, and the Native Hawaiian governing entity, 
     the parties are authorized to submit--
       (A) to the Committee on Indian Affairs of the Senate, the 
     Committee on Energy and Natural Resources of the Senate, and 
     the Committee on Resources of the House of Representatives, 
     recommendations for proposed amendments to Federal law that 
     will enable the implementation of agreements reached between 
     the 3 governments; and
       (B) to the Governor and the legislature of the State of 
     Hawaii, recommendations for proposed amendments to State law 
     that will enable the implementation of agreements reached 
     between the 3 governments.
       (c) Claims.--
       (1) In general.--Nothing in this title serves as a 
     settlement of any claim against the United States.
       (2) Statute of limitations.--Any claim against the United 
     States arising under Federal law that--
       (A) is in existence on the date of enactment of this Act;
       (B) is asserted by the Native Hawaiian governing entity on 
     behalf of the Native Hawaiian people; and
       (C) relates to the legal and political relationship between 
     the United States and the Native Hawaiian people;
     shall be brought in the court of jurisdiction over such 
     claims not later than 20 years after the date on which 
     Federal recognition is extended to the Native Hawaiian 
     governing entity under section 207(c)(6).

     SEC. __09. APPLICABILITY OF CERTAIN FEDERAL LAWS.

       (a) Indian Gaming Regulatory Act.--Nothing in this title 
     shall be construed to authorize the Native Hawaiian governing 
     entity to conduct gaming activities under the authority of 
     the Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.).
       (b) Bureau of Indian Affairs.--Nothing contained in this 
     title provides an authorization for eligibility to 
     participate in any programs and services provided by the 
     Bureau of Indian Affairs for any persons not otherwise 
     eligible for the programs or services.

     SEC. __10. SEVERABILITY.

       If any section or provision of this title is held invalid, 
     it is the intent of Congress that the remaining sections or 
     provisions shall continue in full force and effect.

     SEC. __11. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this title.
                                 ______
                                 
  SA 4044. Mr. FRIST (for Mr. Specter) proposed an amendment to the 
bill S. 2486, to amend title 38, United States Code, to improve and 
enhance education, housing, employment, medical, and other benefits for 
veterans and to improve and extend certain authorities relating to the 
administration or benefits for veterans, and for other purposes; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Veterans 
     Benefits Improvement Act of 2004''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

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

                  TITLE I--VETERANS EARN AND LEARN ACT

Sec. 101. Short title.
Sec. 102. Modification of benefit entitlement charges for certain on-
              job training programs.
Sec. 103. Increase in benefit for individuals pursuing apprenticeship 
              or on-job training.
Sec. 104. Authority for competency-based apprenticeship programs.
Sec. 105. Ten-year extension of delimiting period for survivors' and 
              dependents' educational assistance for spouses of members 
              who die on active duty.
Sec. 106. Availability of education benefits for payment for national 
              admissions exams and national exams for credit at 
              institutions of higher education.
Sec. 107. Requirement for coordination of data among the Departments of 
              Veterans Affairs, Defense, and Labor with respect to on-
              job training.
Sec. 108. Pilot program to provide on-job benefits to train Department 
              of Veterans Affairs' claims adjudicators.
Sec. 109. Collection of payment for educational assistance under 
              Montgomery GI Bill from members of the Selected Reserve 
              called to active duty.
Sec. 110. Technical and conforming amendments.

                      TITLE II--EMPLOYMENT MATTERS

             Subtitle A--Employment and Reemployment Rights

Sec. 201. Two-year period of continuation of employer-sponsored health 
              care coverage.
Sec. 202. Reinstatement of reporting requirements.
Sec. 203. Requirement for employers to provide notice of rights and 
              duties under USERRA.
Sec. 204. Demonstration project for referral of USERRA claims against 
              Federal agencies to the Office of Special Counsel.

                       Subtitle B--Other Matters

Sec. 211. Report of employment placement, retention, and advancement of 
              recently separated servicemembers.

                      TITLE III--BENEFITS MATTERS

Sec. 301. Additional dependency and indemnity compensation for 
              surviving spouses with dependent children.
Sec. 302. Offset of veterans' disability compensation and dependency 
              and indemnity compensation from awards under radiation 
              exposure compensation program.
Sec. 303. Exclusion of life insurance proceeds from consideration as 
              income for veterans' pension purposes.
Sec. 304. Certain service-connected disability benefits authorized for 
              persons disabled by treatment or vocational 
              rehabilitation provided by the Department of Veterans 
              Affairs.
Sec. 305. Effective date of death pension.
Sec. 306. Codification of administrative actions relating to 
              presumptions of service connection for veterans exposed 
              to ionizing radiation.
Sec. 307. Codification of cost-of-living adjustment provided in Public 
              Law 
              108-47.
Sec. 308. Cross-reference amendments relating to concurrent payment of 
              retired pay and veterans' disability compensation.

                       TITLE IV--HOUSING MATTERS

Sec. 401. Authority to provide specially adapted housing to certain 
              disabled veterans.
Sec. 402. Transitional housing amendments.
Sec. 403. Increase in maximum amount of home loan guaranty for 
              construction and purchase of homes and annual indexing of 
              amount.
Sec. 404. Extension of authority for guarantee of adjustable rate 
              mortgages.
Sec. 405. Extension and improvement of authority for guarantee of 
              hybrid adjustable rate mortgages.
Sec. 406. Termination of collection of loan fees from veterans rated 
              eligible for compensation at pre-discharge rating 
              examinations.
Sec. 407. Three-year extension of Native American veteran housing loan 
              pilot program.

                TITLE V--MATTERS RELATING TO FIDUCIARIES

Sec. 501. Definition of fiduciary.
Sec. 502. Inquiry, investigations, and qualification of fiduciaries.
Sec. 503. Misuse of benefits by fiduciaries.
Sec. 504. Additional protections for beneficiaries with fiduciaries.
Sec. 505. Annual report.
Sec. 506. Annual adjustment in benefits thresholds.
Sec. 507. Effective dates.

                   TITLE VI--MEMORIAL AFFAIRS MATTERS

Sec. 601. Designation of Prisoner of War/Missing in Action National 
              Memorial, Riverside National Cemetery, Riverside, 
              California.
Sec. 602. Lease of certain National Cemetery Administration property.
Sec. 603. Exchanges of real property for national cemeteries.

       TITLE VII--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

Sec. 701. Clarification of meaning of ``judgment'' as used in the Act.
Sec. 702. Requirements relating to waiver of rights under the Act.
Sec. 703. Right of servicemember plaintiffs to request stay of civil 
              proceedings.
Sec. 704. Termination of leases.

                       TITLE VIII--OTHER MATTERS

Sec. 801. Principal office of United States Court of Appeals for 
              Veterans Claims.
Sec. 802. Technical amendments relating to the United States Court of 
              Appeals for Veterans Claims.

[[Page 22063]]

Sec. 803. Extension of biennial report of Advisory Committee on Former 
              Prisoners of War.
Sec. 804. Availability of administrative and judicial redress for 
              certain veterans denied opportunity to compete for 
              Federal employment.
Sec. 805. Report on servicemembers' and veterans' awareness of benefits 
              and services available under laws administered by 
              Secretary of Veterans Affairs.

     SEC. 2. REFERENCE 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--VETERANS EARN AND LEARN ACT

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Veterans Earn and Learn 
     Act of 2004''.

     SEC. 102. MODIFICATION OF BENEFIT ENTITLEMENT CHARGES FOR 
                   CERTAIN ON-JOB TRAINING PROGRAMS.

       (a) In General.--Section 3687 is amended by adding at the 
     end the following new subsection:
       ``(e)(1) For each month that an individual (as defined in 
     paragraph (3)) is paid a training assistance allowance under 
     subsection (a), the entitlement of the individual shall be 
     charged at a percentage rate (rounded to the nearest percent) 
     that is equal to the ratio of--
       ``(A) the training assistance allowance for the month 
     involved, to
       ``(B) the monthly educational assistance allowance 
     otherwise payable for full-time enrollment in an educational 
     institution.''.
       ``(2) For any month in which an individual fails to 
     complete 120 hours of training, the entitlement otherwise 
     chargeable under paragraph (1) shall be reduced in the same 
     proportion as the monthly training assistance allowance 
     payable is reduced under subsection (b)(3).
       ``(3) In this section, the term `individual' means--
       ``(A) an eligible veteran who is entitled to monthly 
     educational assistance allowances payable under section 
     3015(e) of this title, or
       ``(B) an eligible person who is entitled to monthly 
     educational assistance allowances payable under section 
     3532(a) of this title,
     as the case may be.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to months beginning after September 
     30, 2005.

     SEC. 103. INCREASE IN BENEFIT FOR INDIVIDUALS PURSUING 
                   APPRENTICESHIP OR ON-JOB TRAINING.

       (a) Montgomery GI Bill.--For months beginning on or after 
     October 1, 2005, and before January 1, 2008, subsection 
     (c)(1) of section 3032 of title 38, United States Code, shall 
     be applied as if--
       (1) the reference to ``75 percent'' in subparagraph (A) 
     were a reference to ``85 percent'';
       (2) the reference to ``55 percent'' in subparagraph (B) 
     were a reference to ``65 percent''; and
       (3) the reference to ``35 percent'' in subparagraph (C) 
     were a reference to ``45 percent''.
       (b) Post-Vietnam Era Veterans' Educational Assistance.--For 
     months beginning on or after October 1, 2005, and before 
     January 1, 2008, subsection (a) of section 3233 of title 38, 
     United States Code, shall be applied as if--
       (1) the reference to ``75 percent'' in paragraph (1) were a 
     reference to ``85 percent'';
       (2) the reference to ``55 percent'' in paragraph (2) were a 
     reference to ``65 percent''; and
       (3) the reference to ``35 percent'' in paragraph (3) were a 
     reference to ``45 percent''.
       (c) Survivors and Dependents Educational Assistance.--(1) 
     For months beginning on or after October 1, 2005, and before 
     January 1, 2008, subsection (b)(2) of section 3687 of title 
     38, United States Code, shall be applied as if--
       (A) the reference to ``$574 for the first six months'' were 
     a reference to ``$650 for the first six months'';
       (B) the reference to ``$429 for the second six months'' 
     were a reference to ``$507 for the second six months''; and
       (C) the reference to ``$285 for the third six months'' were 
     a reference to ``$366 for the third six months''.
       (2) Subsection (d) of such section 3687 shall not apply 
     with respect to the provisions of paragraph (1) for months 
     occurring during fiscal year 2006.
       (3) For months beginning on or after January 1, 2008, the 
     Secretary shall carry out subsection (b)(2) of such section 
     3687 as if paragraphs (1) and (2) were not enacted into law.
       (d) Selected Reserve Montgomery GI Bill.--For months 
     beginning on or after October 1, 2005, and before January 1, 
     2008, Subsection (d)(1) of section 16131 of title 10, United 
     States Code, shall be applied as if--
       (1) the reference to ``75 percent'' in subparagraph (A) 
     were a reference to ``85 percent'';
       (2) the reference to ``55 percent'' in subparagraph (B) 
     were a reference to ``65 percent''; and
       (3) the reference to ``35 percent'' in subparagraph (C) 
     were a reference to ``45 percent''.

     SEC. 104. AUTHORITY FOR COMPETENCY-BASED APPRENTICESHIP 
                   PROGRAMS.

       (a) In General.--Section 3672(c) is amended--
       (1) by striking ``(1)'' and ``(2)'' and inserting ``(A)'' 
     and ``(B)'', respectively;
       (2) by inserting ``(1)'' after ``(c)''; and
       (3) by adding at the end the following new paragraphs:
       ``(2) The period of a program of apprenticeship may be 
     determined based upon a specific period of time (commonly 
     referred to as a `time-based program'), based upon the 
     demonstration of successful mastery of skills (commonly 
     referred to as a `competency-based program'), or based upon a 
     combination thereof.
       ``(3)(A) In the case of a competency-based program of 
     apprenticeship, State approving agencies shall determine the 
     period for which payment may be made for such a program under 
     chapters 30 and 35 of this title and chapter 1606 of title 
     10. In determining the period of such a program, State 
     approving agencies shall take into consideration the 
     approximate term of the program recommended in registered 
     apprenticeship program standards recognized by the Secretary 
     of Labor.
       ``(B) The sponsor of a competency-based program of 
     apprenticeship shall provide notice to the State approving 
     agency involved of any such standards that may apply to the 
     program and the proposed approximate period of training under 
     the program.
       ``(4) The sponsor of a competency-based program of 
     apprenticeship shall notify the Secretary upon the successful 
     completion of a program of apprenticeship by an individual 
     under chapter 30 or 35 of this title, or chapter 1606 of 
     title 10, as the case may be.''.
       (b) Increased Use of Apprenticeships.--Section 3672(d)(1) 
     is amended by adding at the end the following new sentence: 
     ``The Secretary of Labor shall provide assistance and 
     services to the Secretary, and to State approving agencies, 
     to increase the use of apprenticeships.''.
       (c) Funding for Department Computer System Modifications.--
     From amounts appropriated to the Department of Veterans 
     Affairs for fiscal year 2005 for readjustment benefits, the 
     Secretary of Veterans Affairs shall use an amount not to 
     exceed $3,000,000 to modify computer systems and to develop 
     procedures required to carry out the amendments made by 
     subsection (a) and sections 102 and 103.

     SEC. 105. TEN-YEAR EXTENSION OF DELIMITING PERIOD FOR 
                   SURVIVORS' AND DEPENDENTS' EDUCATIONAL 
                   ASSISTANCE FOR SPOUSES OF MEMBERS WHO DIE ON 
                   ACTIVE DUTY.

        Section 3512(b)(1) is amended--
       (1) in subparagraph (A), by striking ``in subparagraph 
     (B)'' and inserting ``in subparagraph (B) or (C)''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) Notwithstanding subparagraph (A), an eligible person 
     referred to in that subparagraph who is made eligible under 
     section 3501(a)(1)(B) of this title by reason of the death of 
     a person on active duty may be afforded educational 
     assistance under this chapter during the 20-year period 
     beginning on the date (as determined by the Secretary) such 
     person becomes an eligible person within the meaning of such 
     section.''.

     SEC. 106. AVAILABILITY OF EDUCATION BENEFITS FOR PAYMENT FOR 
                   NATIONAL ADMISSIONS EXAMS AND NATIONAL EXAMS 
                   FOR CREDIT AT INSTITUTIONS OF HIGHER EDUCATION.

       (a) Covered Exams.--Sections 3452(b) and 3501(a)(5) are 
     each amended by adding at the end the following new sentence: 
     ``Such term also includes national tests for admission to 
     institutions of higher learning or graduate schools (such as 
     the Scholastic Aptitude Test (SAT), Law School Admission Test 
     (LSAT), Graduate Record Exam (GRE), and Graduate Management 
     Admission Test (GMAT)) and national tests providing an 
     opportunity for course credit at institutions of higher 
     learning (such as the Advanced Placement (AP) exam and 
     College-Level Examination Program (CLEP)).''.
       (b) Amount of Payment.--
       (1) Chapter 30.--Section 3032 is amended by adding at the 
     end the following new subsection:
       ``(g)(1) Subject to paragraph (3), the amount of 
     educational assistance payable under this chapter for a 
     national test for admission or national test providing an 
     opportunity for course credit at institutions of higher 
     learning described in section 3452(b) of this title is the 
     amount of the fee charged for the test.
       ``(2) The number of months of entitlement charged in the 
     case of any individual for a test described in paragraph (1) 
     is equal to the number (including any fraction) determined by 
     dividing the total amount of educational assistance paid such 
     individual for such test by the full-time monthly 
     institutional rate of educational assistance, except for 
     paragraph (1), such individual would otherwise be paid under 
     subsection (a)(1), (b)(1), (d), or (e)(1) of section 3015 of 
     this title, as the case may be.

[[Page 22064]]

       ``(3) In no event shall payment of educational assistance 
     under this subsection for a test described in paragraph (1) 
     exceed the amount of the individual's available entitlement 
     under this chapter.''.
       (2) Chapter 32.--Section 3232 is amended by adding at the 
     end the following new subsection:
       ``(d)(1) Subject to paragraph (3), the amount of 
     educational assistance payable under this chapter for a 
     national test for admission or national test providing an 
     opportunity for course credit at institutions of higher 
     learning described in section 3452(b) of this title is the 
     amount of the fee charged for the test.
       ``(2) The number of months of entitlement charged in the 
     case of any individual for a test described in paragraph (1) 
     is equal to the number (including any fraction) determined by 
     dividing the total amount of educational assistance paid such 
     individual for such test by the full-time monthly 
     institutional rate of educational assistance, except for 
     paragraph (1), such individual would otherwise be paid under 
     this chapter.
       ``(3) In no event shall payment of educational assistance 
     under this subsection for a test described in paragraph (1) 
     exceed the amount of the individual's available entitlement 
     under this chapter.''.
       (3) Chapter 35.--Section 3532 is amended by adding at the 
     end the following new subsection:
       ``(g)(1) Subject to paragraph (3), the amount of 
     educational assistance payable under this chapter for a 
     national test for admission or national test providing an 
     opportunity for course credit at institutions of higher 
     learning described in section 3501(a)(5) of this title is the 
     amount of the fee charged for the test.
       ``(2) The number of months of entitlement charged in the 
     case of any individual for a test described in paragraph (1) 
     is equal to the number (including any fraction) determined by 
     dividing the total amount of educational assistance paid such 
     individual for such test by the full-time monthly 
     institutional rate of educational assistance, except for 
     paragraph (1), such individual would otherwise be paid under 
     this chapter.
       ``(3) In no event shall payment of educational assistance 
     under this subsection for a test described in paragraph (1) 
     exceed the amount of the individual's available entitlement 
     under this chapter.''.

     SEC. 107. REQUIREMENT FOR COORDINATION OF DATA AMONG THE 
                   DEPARTMENTS OF VETERANS AFFAIRS, DEFENSE, AND 
                   LABOR WITH RESPECT TO ON-JOB TRAINING.

        Section 3694 is amended--
       (1) by striking ``In carrying out'' and inserting ``(a) In 
     General.--In carrying out''; and
       (2) by adding at the end the following new subsection:
       ``(b) Coordination of Information Among the Departments of 
     Veterans Affairs, Defense, and Labor With Respect to On-Job 
     Training.--At the time of a servicemember's discharge or 
     release from active duty service, the Secretary of Defense 
     shall furnish to the Secretary such pertinent information 
     concerning each registered apprenticeship pursued by the 
     servicemember during the period of active duty service of the 
     servicemember. The Secretary, in conjunction with the 
     Secretary of Labor, shall encourage and assist States and 
     private organizations to give credit to servicemembers for 
     the registered apprenticeship program so pursued in the case 
     of any related apprenticeship program the servicemember may 
     pursue as a civilian.''.

     SEC. 108. PILOT PROGRAM TO PROVIDE ON-JOB BENEFITS TO TRAIN 
                   DEPARTMENT OF VETERANS AFFAIRS' CLAIMS 
                   ADJUDICATORS.

        Section 3677 is amended by adding at the end the following 
     new subsection:
       ``(d)(1) The Secretary may conduct a pilot program under 
     which the Secretary operates a program of training on the job 
     under this section for a period (notwithstanding subsection 
     (c)(2)) of up to three years in duration to train employees 
     of the Department to become qualified adjudicators of claims 
     for compensation, dependency and indemnity compensation, and 
     pension.
       ``(2)(A) Not later than three years after the 
     implementation of the pilot project, the Secretary shall 
     submit to Congress an initial report on the pilot project. 
     The report shall include an assessment of the usefulness of 
     the program in recruiting and retaining of personnel of the 
     Department as well as an assessment of the value of the 
     program as a training program.
       ``(B) Not later than 18 months after the date on which the 
     initial report under subparagraph (A) is submitted, the 
     Secretary shall submit to Congress a final report on the 
     pilot project. The final report shall include recommendations 
     of the Secretary with respect to continuation of the pilot 
     project and with respect to expansion of the types of claims 
     for which the extended period of on the job training is 
     available to train such employees.''.

     SEC. 109. COLLECTION OF PAYMENT FOR EDUCATIONAL ASSISTANCE 
                   UNDER MONTGOMERY GI BILL FROM MEMBERS OF THE 
                   SELECTED RESERVE CALLED TO ACTIVE DUTY.

       (a) Active Duty Program.--Section 3011(b) is amended--
       (1) by striking ``The basic pay'' and inserting ``(1) 
     Except as provided in paragraph (2), the basic pay'';
       (2) by designating the second sentence as paragraph (3) and 
     in that paragraph by striking ``this chapter'' and inserting 
     ``this subsection''; and
       (3) by inserting after paragraph (1), as so designated, the 
     following new paragraph:
       ``(2) In the case of an individual covered by paragraph (1) 
     who is a member of the Selected Reserve, the Secretary of 
     Defense shall collect from the individual an amount equal to 
     $1,200 not later than one year after completion by the 
     individual of the two years of service on active duty 
     providing the basis for such entitlement. The Secretary of 
     Defense may collect such amount through reductions in basic 
     pay in accordance with paragraph (1) or through such other 
     method as the Secretary of Defense considers appropriate.''.
       (b) Selected Reserve Program.--Section 3012(c) is amended--
       (1) by striking ``The basic pay'' and inserting ``(1) 
     Except as provided in paragraph (2), the basic pay'';
       (2) by designating the second sentence as paragraph (3) and 
     in that paragraph by striking ``this chapter'' and inserting 
     ``this subsection''; and
       (3) by inserting after paragraph (1), as so designated, the 
     following new paragraph:
       ``(2) In the case of an individual covered by paragraph (1) 
     who is a member of the Selected Reserve, the Secretary of 
     Defense shall collect from the individual an amount equal to 
     $1,200 not later than one year after completion by the 
     individual of the two years of service on active duty 
     providing the basis for such entitlement. The Secretary of 
     Defense may collect such amount through reductions in basic 
     pay in accordance with paragraph (1) or through such other 
     method as the Secretary of Defense considers appropriate.''.

     SEC. 110. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Definition of Training Establishment.--Section 3452(e), 
     as amended by section 301 of the Veterans Benefits Act of 
     2003 (Public Law 108-183; 117 Stat. 2658), is amended in 
     paragraph (5) to read as follows:
       ``(5) The sponsor of a program of apprenticeship.''.
       (b) Clarification of Applicable Apprenticeship Standards.--
     (1) Section 3672(c), as amended by section 105(a), is amended 
     in subparagraph (A) by inserting ``apprenticeship'' before 
     ``standards''.
       (2) Section 3672(d)(1) is amended by striking ``of programs 
     of training on the job (including programs of 
     apprenticeship)'' and inserting ``of apprenticeship and on 
     the job training programs''.
       (c) Record-Keeping Requirements for Qualified Providers of 
     Entrepreneurship Courses.--(1) Section 3675(c) is amended by 
     adding at the end the following new paragraph:
       ``(4) Notwithstanding paragraph (3), a qualified provider 
     of entrepreneurship courses shall maintain such records as 
     the Secretary determines to be necessary to comply with 
     reporting requirements that apply under section 3684(a)(1) of 
     this title with respect to eligible persons and veterans 
     enrolled in an entrepreneurship course offered by the 
     provider.''.
       (2) The amendment made by paragraph (1) shall take effect 
     as if included in the enactment of section 305(a) of the 
     Veterans Benefits Act of 2003 (Public Law 108-183; 117 Stat. 
     2660).
       (d) Authority To Pay Reporting Fee.--Section 3684(c) is 
     amended by striking ``or to any joint apprenticeship training 
     committee acting as a training establishment'' and inserting 
     ``or to the sponsor of a program of apprenticeship''.

                      TITLE II--EMPLOYMENT MATTERS

             Subtitle A--Employment and Reemployment Rights

     SEC. 201. TWO-YEAR PERIOD OF CONTINUATION OF EMPLOYER-
                   SPONSORED HEALTH CARE COVERAGE.

       (a) Improvement in Period of Coverage.--Subsection 
     (a)(1)(A) of section 4317 is amended by striking ``18-month 
     period'' and inserting ``24-month period''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to elections made under section 4317 of title 38, 
     United States Code, on or after the date of the enactment of 
     this Act.

     SEC. 202. REINSTATEMENT OF REPORTING REQUIREMENTS.

       Section 4332 is amended in the matter preceding paragraph 
     (1) by striking ``no later than February 1, 1996, and 
     annually thereafter through 2000'' and inserting ``no later 
     than February 1, 2005, and annually thereafter''.

     SEC. 203. REQUIREMENT FOR EMPLOYERS TO PROVIDE NOTICE OF 
                   RIGHTS AND DUTIES UNDER USERRA.

       (a) Notice.--Chapter 43 is amended by adding at the end the 
     following new section:

     ``Sec. 4334. Notice of rights and duties

       ``(a) Requirement to Provide Notice.--Each employer shall 
     provide to persons entitled to rights and benefits under this 
     chapter a notice of the rights, benefits, and obligations of 
     such persons and such employers under this chapter. The 
     requirement for the provision of notice under this section 
     may be

[[Page 22065]]

     met by the posting of the notice where employers customarily 
     place notices for employees.
       ``(b) Content of Notice.--The Secretary shall provide to 
     employers the text of the notice to be provided under this 
     section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``4334. Notice of rights and duties.''.
       (c) Implementation.--(1) Not later than the date that is 90 
     days after the date of the enactment of this Act, the 
     Secretary of Labor shall make available to employers the 
     notice required under section 4334 of title 38, United States 
     Code, as added by subsection (a).
       (2) The amendments made by this section shall apply to 
     employers under chapter 43 of title 38, United States Code, 
     on and after the first date referred to in paragraph (1).

     SEC. 204. DEMONSTRATION PROJECT FOR REFERRAL OF USERRA CLAIMS 
                   AGAINST FEDERAL AGENCIES TO THE OFFICE OF 
                   SPECIAL COUNSEL.

       (a) Establishment of Project.--The Secretary of Labor and 
     the Office of Special Counsel shall carry out a demonstration 
     project under which certain claims against Federal executive 
     agencies under the Uniformed Services Employment and 
     Reemployment Rights Act under chapter 43 of title 38, United 
     States Code, are referred to, or otherwise received by, the 
     Office of Special Counsel for assistance, including 
     investigation and resolution of the claim as well as 
     enforcement of rights with respect to the claim.
       (b) Referral of All Prohibited Personnel Action Claims to 
     the Office of Special Counsel.--(1) Under the demonstration 
     project, the Office of Special Counsel shall receive and 
     investigate all claims under the Uniformed Services 
     Employment and Reemployment Rights Act with respect to 
     Federal executive agencies in cases where the Office of 
     Special Counsel has jurisdiction over related claims pursuant 
     to section 1212 of title 5, United States Code.
       (2) For purposes of paragraph (1), a related claim is a 
     claim involving the same Federal executive agency and the 
     same or similar factual allegations or legal issues as those 
     being pursued under a claim under the Uniformed Services 
     Employment and Reemployment Rights Act.
       (c) Referral of Other Claims Against Federal Executive 
     Agencies.--(1) Under the demonstration project, the 
     Secretary--
       (A) shall refer to the Office of Special Counsel all claims 
     described in paragraph (2) made during the period of the 
     demonstration project; and
       (B) may refer any claim described in paragraph (2) filed 
     before the demonstration project that is pending before the 
     Secretary at the beginning of the demonstration project.
       (2) A claim referred to in paragraph (1) is a claim under 
     chapter 43 of title 38, United States Code, against a Federal 
     executive agency by a claimant with a social security account 
     number with an odd number as its terminal digit, or, in the 
     case of a claim that does not contain a social security 
     account number, a case number assigned to the claim with an 
     odd number as its terminal digit.
       (d) Administration of Demonstration Project.--(1) The 
     Office of Special Counsel shall administer the demonstration 
     project. The Secretary shall cooperate with the Office of 
     Special Counsel in carrying out the demonstration project.
       (2) In the case of any claim referred, or otherwise 
     received by, to the Office of Special Counsel under the 
     demonstration project, any reference to the ``Secretary'' in 
     sections 4321, 4322, and 4326 of title 38, United States 
     Code, is deemed a reference to the ``Office of Special 
     Counsel''.
       (3) In the case of any claim referred to, or otherwise 
     received by, the Office of Special Counsel under the 
     demonstration project, the Office of Special Counsel shall 
     retain administrative jurisdiction over the claim.
       (e) Period of Project.--The demonstration project shall be 
     carried out during the period beginning on the date that is 
     60 days after the date of the enactment of this Act, and 
     ending on September 30, 2007.
       (f) Evaluations and Report.--(1) The Comptroller General of 
     the United States shall conduct periodic evaluations of the 
     demonstration project under this section.
       (2) Not later than April 1, 2007, the Comptroller General 
     shall submit to Congress a report on the evaluations 
     conducted under paragraph (1). The report shall include the 
     following information and recommendations:
       (A) A description of the operation and results of the 
     demonstration program, including--
       (i) the number of claims described in subsection (c) 
     referred to, or otherwise received by, the Office of Special 
     Counsel, and the number of such claims referred to the 
     Secretary of Labor; and
       (ii) for each Federal executive agency, the number of 
     claims resolved, the type of corrective action obtained, the 
     period of time for final resolution of the claim, and the 
     results obtained.
       (B) An assessment of whether referral to the office of 
     special counsel of claims under the demonstration project--
       (i) improved services to servicemembers and veterans; or
       (ii) significantly reduced or eliminated duplication of 
     effort and unintended delays in resolving meritorious claims 
     of those servicemembers and veterans.
       (C) An assessment of the feasibility and advisability of 
     referring all claims under chapter 43 of title 38, United 
     States Code, against Federal executive agencies to the Office 
     of Special Counsel for investigation and resolution.
       (D) Such other recommendations for administrative action or 
     legislation as the Comptroller General determines 
     appropriate.
       (g) Definitions.--In this section:
       (1) The term ``Office of Special Counsel'' means the Office 
     of Special Counsel established by section 1211 of title 5, 
     United States Code.
       (2) The term ``Secretary'' means the Secretary of Labor.
       (3) The term ``Federal executive agency'' has the meaning 
     given that term in section 4303(5) of title 38, United States 
     Code.

                       Subtitle B--Other Matters

     SEC. 211. REPORT OF EMPLOYMENT PLACEMENT, RETENTION, AND 
                   ADVANCEMENT OF RECENTLY SEPARATED 
                   SERVICEMEMBERS.

       (a) Contract for Report.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Veterans 
     Affairs shall enter into a contract with a qualified entity 
     to conduct a study of and prepare a report on the employment 
     histories of recently separated servicemembers.
       (b) Content of Report.--(1) The study conducted pursuant to 
     subsection (a) shall consist of an analysis of employment-
     related data that have been collected with respect to 
     recently separated servicemembers.
       (2) In conducting the study, the qualified entity shall--
       (A) determine whether the employment obtained by recently 
     separated servicemembers is commensurate with training and 
     education of those servicemembers;
       (B) determine whether recently separated servicemembers 
     received educational assistance or training and 
     rehabilitation under programs administered by the Secretary 
     of Veterans Affairs under chapter 30 or 31 of title 38, 
     United States Code, or under chapter 1606 of title 10, United 
     States Code;
       (C) determine whether transition assistance services 
     provided to recently separated servicemembers assisted those 
     service-
     members in obtaining civilian employment;
       (D) analyze trends in hiring of veterans by the private 
     sector; and
       (E) identify recently separated service-
     members who have reached senior level management positions.
       (c) Use of Data.--In conducting the study under subsection 
     (a), the qualified entity shall review data compiled and 
     reported by the Bureau of Labor Statistics and shall collect 
     additional data on the employment histories of recently 
     separated servicemembers available from such other sources as 
     the qualified entity determines to be appropriate.
       (d) Contract Requirements.--(1) The contract entered into 
     under subsection (a) shall contain such terms and conditions 
     as the Secretary may require. The contract shall require that 
     the report on the study be submitted to the Secretary not 
     later than 2 years after the date on which the contract was 
     entered into.
       (2) The report required under subsection (a) shall contain 
     the findings and conclusions of the qualified entity on the 
     study and specific recommendations to improve employment 
     opportunities for veterans recently separated from service in 
     the Armed Forces, including, if appropriate, recommendations 
     for--
       (A) the establishment of networks of contacts for 
     employment of such veterans in the private sector;
       (B) outreach to private sector leaders on the merits and 
     sound business practice of hiring such veterans; and
       (C) additional methods to facilitate communication between 
     private sector employers and such veterans who are seeking 
     employment.
       (e) Funding.--Payment by the Secretary for the contract 
     entered into under subsection (a)--
       (1) shall be made from the Department of Veterans Affairs 
     appropriations account from which payments for readjustment 
     benefits are made; and
       (2) may not exceed $490,000.
       (f) Definitions.--In this section:
       (1) The term ``qualified entity'' means an entity or 
     organization that meets the following requirements:
       (A) Demonstrated experience in conducting employment 
     surveys of recently separated servicemembers, including 
     Internet-based surveys, that meet such quality assurance 
     requirements as the Secretary determines appropriate.
       (B) Demonstrated familiarity with veteran employment 
     matters.
       (C) Demonstrated ability in developing plans to market 
     veterans as employment assets.
       (D) Demonstrated ability to acquire services at no cost 
     from other organizations, such as technology, staff services, 
     and advertising services.
       (E) Demonstrated ability to develop relationships, 
     establish employment networks,

[[Page 22066]]

     and facilitate interaction between private and public sector 
     leaders and veterans.
       (2) The term ``employment history'' means, with respect to 
     a recently separated servicemember, training, placement, 
     retention, and advancement in employment of that 
     servicemember.
       (3) The term ``recently separated servicemember'' means any 
     veteran (as defined in section 101(2) of title 38, United 
     States Code) discharged or released from active duty in the 
     Armed Forces of the United States during the 16-year period 
     beginning on January 1, 1990.

                      TITLE III--BENEFITS MATTERS

     SEC. 301. ADDITIONAL DEPENDENCY AND INDEMNITY COMPENSATION 
                   FOR SURVIVING SPOUSES WITH DEPENDENT CHILDREN.

       (a) Additional Dependency and Indemnity Compensation.--
     Section 1311 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 
     18, 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 under this subsection only for months occurring 
     during the two-year period beginning on the date on which 
     entitlement to dependency and indemnity compensation 
     commenced.
       ``(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 18.
       ``(4) Dependency and indemnity compensation under this 
     subsection is in addition to any other dependency and 
     indemnity compensation payable under this chapter.''.
       (b) Effective Date.--Subsection (e) of section 1311 of 
     title 38, United States Code, as added by subsection (a), 
     shall take effect with respect to payments for the first 
     month beginning after the date of the enactment of this Act.

     SEC. 302. OFFSET OF VETERANS' DISABILITY COMPENSATION AND 
                   DEPENDENCY AND INDEMNITY COMPENSATION FROM 
                   AWARDS UNDER RADIATION EXPOSURE COMPENSATION 
                   PROGRAM.

       (a) Offset in Lieu of Forfeiture From Disability 
     Compensation.--Subsection (c) of section 1112 is amended by 
     adding at the end the following new paragraph:
       ``(4) A radiation-exposed veteran who receives a payment 
     under the provisions of the Radiation Exposure Compensation 
     Act of 1990 (42 U.S.C. 2210 note) shall not be deprived, by 
     reason of the receipt of that payment, of receipt of 
     compensation to which that veteran is entitled by reason of 
     paragraph (1), but there shall be deducted from payment of 
     such compensation the amount of the payment under that 
     Act.''.
       (b) Offset in Lieu of Forfeiture From Dependency and 
     Indemnity Compensation.--Section 1310 is amended by adding at 
     the end the following new paragraph:
       ``(c) A person who receives a payment under the provisions 
     of the Radiation Exposure Compensation Act of 1990 (42 U.S.C. 
     2210 note) shall not be deprived, by reason of the receipt of 
     that payment, of receipt of dependency and indemnity 
     compensation to which that person is otherwise entitled, but 
     there shall be deducted from payment of such dependency and 
     indemnity compensation the amount of the payment under that 
     Act.''.
       (c) Effective Date.--Paragraph (4) of section 1112(c) of 
     title 38, United States Code, as added by subsection (a), 
     shall take effect with respect to compensation payments for 
     months beginning after March 26, 2002. Subsection (c) of 
     section 1310 of such title, as added by subsection (b), shall 
     take effect with respect to dependency and indemnity 
     compensation payments for months beginning after March 26, 
     2002.

     SEC. 303. EXCLUSION OF LIFE INSURANCE PROCEEDS FROM 
                   CONSIDERATION AS INCOME FOR VETERANS' PENSION 
                   PURPOSES.

        Section 1503(a) is amended--
       (1) by striking ``and'' at the end of paragraph (9);
       (2) by striking the period at the end of the paragraph (10) 
     and inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(11) lump-sum proceeds of any life insurance policy on a 
     veteran, for purposes of pension under subchapter III of this 
     chapter.''.

     SEC. 304. CERTAIN SERVICE-CONNECTED DISABILITY BENEFITS 
                   AUTHORIZED FOR PERSONS DISABLED BY TREATMENT OR 
                   VOCATIONAL REHABILITATION PROVIDED BY THE 
                   DEPARTMENT OF VETERANS AFFAIRS.

       (a) Authorized Benefits.--Section 1151 is amended by adding 
     at the end the following new subsection:
       ``(c) A qualifying additional disability under this section 
     shall be treated in the same manner as if it were a service-
     connected disability for purposes of the following provisions 
     of this title:
       ``(1) Chapter 21, relating to specially adapted housing.
       ``(2) Chapter 39, relating to automobiles and adaptive 
     equipment.''.
       (b) Effective Date.--Subsection (c) of section 1151 of 
     title 38, United States Code, as added by subsection (a), 
     shall apply with respect to eligibility for benefits and 
     services provided by the Secretary of Veterans Affairs on or 
     after the date of the enactment of this Act.
       (c) Administration of Offset Provision.--Subsection (b) of 
     section 1151 is amended--
       (1) by inserting ``(1)'' after ``(b)'';
       (2) by inserting ``(except as otherwise provided in 
     paragraph (2))'' after ``service-connected, then''; and
       (3) by adding at the end the following new paragraph:
       ``(2) In the case of a judgment, settlement, or compromise 
     covered by paragraph (1) that becomes final on or after the 
     date of the enactment of this paragraph and that includes an 
     amount that is specifically designated for a purpose for 
     which benefits are provided under chapter 21 or 39 of this 
     title (hereinafter in this paragraph referred to as the 
     `offset amount'), if such judgment, settlement, or compromise 
     becomes final before the date of the award of benefits under 
     chapter 21 or 39 for the purpose for which the offset amount 
     was specifically designated--
       ``(A) the amount of such award shall be reduced by the 
     offset amount; and
       ``(B) if the offset amount is greater than the amount of 
     such award, the excess amount received pursuant to the 
     judgment, settlement or compromise, shall be offset against 
     benefits otherwise payable under this chapter.''.

     SEC. 305. EFFECTIVE DATE OF DEATH PENSION.

        Section 5110(d) is amended--
       (1) by striking ``(1)'';
       (2) by striking ``death compensation or dependency and 
     indemnity compensation'' and inserting ``death compensation, 
     dependency and indemnity compensation, or death pension''; 
     and
       (3) by striking paragraph (2).

     SEC. 306. CODIFICATION OF ADMINISTRATIVE ACTIONS RELATING TO 
                   PRESUMPTIONS OF SERVICE CONNECTION FOR VETERANS 
                   EXPOSED TO IONIZING RADIATION.

       (a) Covered Diseases.--Subsection (c)(2) of section 1112 is 
     amended by adding at the end the following new subparagraphs:
       ``(Q) Cancer of the bone.
       ``(R) Cancer of the brain.
       ``(S) Cancer of the colon.
       ``(T) Cancer of the lung.
       ``(U) Cancer of the ovary.''.
       (b) Covered Radiation-Risk Activities.--Subsection 
     (c)(3)(B) of such section is amended by adding at the end the 
     following new clause:
       ``(iv) Service in a capacity which, if performed as an 
     employee of the Department of Energy, would qualify the 
     individual for inclusion as a member of the Special Exposure 
     Cohort under section 3621(14) of the Energy Employees 
     Occupational Illness Compensation Program Act of 2000 (42 
     U.S.C. 7384l(14)).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as of March 26, 2002.

     SEC. 307. CODIFICATION OF COST-OF-LIVING ADJUSTMENT PROVIDED 
                   IN PUBLIC LAW 108-47.

       (a) Veterans' Disability Compensation.--Section 1114 is 
     amended--
       (1) by striking ``$104'' in subsection (a) and inserting 
     ``$106'';
       (2) by striking ``$201'' in subsection (b) and inserting 
     ``$205'';
       (3) by striking ``$310'' in subsection (c) and inserting 
     ``$316'';
       (4) by striking ``$445'' in subsection (d) and inserting 
     ``$454'';
       (5) by striking ``$633'' in subsection (e) and inserting 
     ``$646'';
       (6) by striking ``$801'' in subsection (f) and inserting 
     ``$817'';
       (7) by striking ``$1,008'' in subsection (g) and inserting 
     ``$1,029'';
       (8) by striking ``$1,171'' in subsection (h) and inserting 
     ``$1,195'';
       (9) by striking ``$1,317'' in subsection (i) and inserting 
     ``$1,344'';
       (10) by striking ``$2,193'' in subsection (j) and inserting 
     ``$2,239'';
       (11) in subsection (k)--
       (A) by striking ``$81'' both places it appears and 
     inserting ``$82''; and
       (B) by striking ``$2,728'' and ``$3,827'' and inserting 
     ``$2,785'' and ``$3,907'', respectively;
       (12) by striking ``$2,728'' in subsection (l) and inserting 
     ``$2,785'';
       (13) by striking ``$3,010'' in subsection (m) and inserting 
     ``$3,073'';
       (14) by striking ``$3,425'' in subsection (n) and inserting 
     ``$3,496'';
       (15) by striking ``$3,827'' each place it appears in 
     subsections (o) and (p) and inserting ``$3,907'';
       (16) by striking ``$1,643'' and ``$2,446'' in subsection 
     (r) and inserting ``$1,677'' and ``$2,497'', respectively; 
     and
       (17) by striking ``$2,455'' in subsection (s) and inserting 
     ``$2,506''.
       (b) Additional Compensation for Dependents.--Section 
     1115(1) is amended--
       (1) by striking ``$125'' in subparagraph (A) and inserting 
     ``$127'';
       (2) by striking ``$215'' and ``$64'' in subparagraph (B) 
     and inserting ``$219'' and ``$65'', respectively;
       (3) by striking ``$85'' and ``$64'' in subparagraph (C) and 
     inserting ``$86'' and ``$65'', respectively;

[[Page 22067]]

       (4) by striking ``$101'' in subparagraph (D) and inserting 
     ``$103'';
       (5) by striking ``$237'' in subparagraph (E) and inserting 
     ``$241''; and
       (6) by striking ``$198'' in subparagraph (F) and inserting 
     ``$202''.
       (c) Clothing Allowance for Certain Disabled Veterans.--
     Section 1162 is amended by striking ``$588'' and inserting 
     ``$600''.
       (d) Dependency and Indemnity Compensation for Surviving 
     Spouses.--(1) Section 1311(a) is amended--
       (A) by striking ``$948'' in paragraph (1) and inserting 
     ``$967''; and
       (B) by striking ``$204'' in paragraph (2) and inserting 
     ``$208''.
       (2) The table in section 1311(a)(3) is amended to read as 
     follows:


 
                                 Monthly                         Monthly
           Pay grade              rate            Pay grade       rate
 
E-1...........................      $967  ..   W-4............    $1,157
 E-2..........................      $967  ..  O-1.............    $1,022
 E-3..........................      $967  ..   O-2............    $1,056
 E-4..........................      $967  ..   O-3............    $1,130
E-5...........................      $967  ..   O-4............    $1,195
 E-6..........................      $967  ..   O-5............    $1,316
 E-7..........................    $1,000  ..   O-6............    $1,483
E-8...........................    $1,056  ..  O-7.............    $1,602
 E-9..........................   1$1,102  ..  O-8.............    $1,758
W-1...........................    $1,022  ..   O-9............    $1,881
W-2...........................    $1,063  ..  O-10............   $2,0632
W-3...........................    $1,094  ..  ................  ........
1 If the veteran served as sergeant major of the Army, senior enlisted
  advisor of the Navy, chief master sergeant of the Air Force, sergeant
  major of the Marine Corps, or master chief petty officer of the Coast
  Guard, at the applicable time designated by section 1302 of this
  title, the surviving spouse's rate shall be $1,189.
2 If the veteran served as Chairman or Vice-Chairman of the Joint Chiefs
  of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief
  of Staff of the Air Force, Commandant of the Marine Corps, or
  Commandant of the Coast Guard, at the applicable time designated by
  section 1302 of this title, the surviving spouse's rate shall be
  $2,213.

       (3) Section 1311(b) is amended by striking ``$237'' and 
     inserting ``$241''.
       (4) Section 1311(c) is amended by striking ``$237'' and 
     inserting ``$241''.
       (5) Section 1311(d) is amended by striking ``$113'' and 
     inserting ``$115''.
       (e) Dependency and Indemnity Compensation for Children.--
     (1) Section 1313(a) is amended--
       (A) by striking ``$402'' in paragraph (1) and inserting 
     ``$410'';
       (B) by striking ``$578'' in paragraph (2) and inserting 
     ``$590'';
       (C) by striking ``$752'' in paragraph (3) and inserting 
     ``$767''; and
       (D) by striking ``$752'' and ``$145'' in paragraph (4) and 
     inserting ``$767'' and ``$148'', respectively.
       (2) Section 1314 is amended--
       (A) by striking ``$237'' in subsection (a) and inserting 
     ``$241'';
       (B) by striking ``$402'' in subsection (b) and inserting 
     ``$410''; and
       (C) by striking ``$201'' in subsection (c) and inserting 
     ``$205''.

     SEC. 308. CROSS-REFERENCE AMENDMENTS RELATING TO CONCURRENT 
                   PAYMENT OF RETIRED PAY AND VETERANS' DISABILITY 
                   COMPENSATION.

       (a) Prohibition Against Duplication of Benefits.--Section 
     5304(a)(1) is amended by inserting ``as provided in section 
     1414 of title 10 or'' after ``Except''.
       (b) Waiver of Retired Pay.--Section 5305 is amended by 
     striking ``Any'' in the first sentence and inserting ``Except 
     as provided in section 1414 of title 10, any''.

                       TITLE IV--HOUSING MATTERS

     SEC. 401. AUTHORITY TO PROVIDE SPECIALLY ADAPTED HOUSING TO 
                   CERTAIN DISABLED VETERANS.

        The text of section 2101 is amended to read as follows:
       ``(a) Acquisition of Housing With Special Features.--(1) 
     Subject to paragraph (3), the Secretary may assist a disabled 
     veteran described in paragraph (2) in acquiring a suitable 
     housing unit with special fixtures or movable facilities made 
     necessary by the nature of the veteran's disability, and 
     necessary land therefor.
       ``(2) A veteran is described in this paragraph if the 
     veteran is entitled to compensation under chapter 11 of this 
     title for a permanent and total service-connected disability 
     that meets any of the following criteria:
       ``(A) The disability is due to the loss, or loss of use, of 
     both lower extremities such as to preclude locomotion without 
     the aid of braces, crutches, canes, or a wheelchair.
       ``(B) The disability is due to--
       ``(i) blindness in both eyes, having only light perception, 
     plus
       ``(ii) loss or loss of use of one lower extremity.
       ``(C) The disability is due to the loss or loss of use of 
     one lower extremity together with--
       ``(i) residuals of organic disease or injury; or
       ``(ii) the loss or loss of use of one upper extremity,
     which so affect the functions of balance or propulsion as to 
     preclude locomotion without the aid of braces, crutches, 
     canes, or a wheelchair.
       ``(D) The disability is due to the loss, or loss of use, of 
     both upper extremities such as to preclude use of the arms at 
     or above the elbows.
       ``(3) The regulations prescribed under subsection (c) shall 
     require that assistance under paragraph (1) may be provided 
     to a veteran only if the Secretary finds that--
       ``(A) it is medically feasible for the veteran to reside in 
     the proposed housing unit and in the proposed locality;
       ``(B) the proposed housing unit bears a proper relation to 
     the veteran's present and anticipated income and expenses; 
     and
       ``(C) the nature and condition of the proposed housing unit 
     are such as to be suitable to the veteran's needs for 
     dwelling purposes.
       ``(b) Adaptations to Residence of Veteran.--(1) Subject to 
     paragraph (3), the Secretary shall assist any disabled 
     veteran described in paragraph (2) (other than a veteran who 
     is eligible for assistance under subsection (a))--
       ``(A) in acquiring such adaptations to such veteran's 
     residence as are determined by the Secretary to be reasonably 
     necessary because of such disability; or
       ``(B) in acquiring a residence already adapted with special 
     features determined by the Secretary to be reasonably 
     necessary for the veteran because of such disability.
       ``(2) A veteran is described in this paragraph if the 
     veteran is entitled to compensation under chapter 11 of this 
     title for a permanent and total service-connected disability 
     that meets either of the following criteria:
       ``(A) The disability is due to blindness in both eyes with 
     5/200 visual acuity or less.
       ``(B) The disability includes the anatomical loss or loss 
     of use of both hands.
       ``(3) Assistance under paragraph (1) may be provided only 
     to a veteran who the Secretary determines--
       ``(A) is residing in and reasonably intends to continue 
     residing in a residence owned by such veteran or by a member 
     of such veteran's family; or
       ``(B) if the veteran's residence is to be constructed or 
     purchased, will be residing in and reasonably intends to 
     continue residing in a residence owned by such veteran or by 
     a member of such veteran's family.
       ``(c) Regulations.--Assistance under this section shall be 
     provided in accordance with such regulations as the Secretary 
     may prescribe.''.

     SEC. 402. TRANSITIONAL HOUSING AMENDMENTS.

       (a) Use of Veteran Volunteers.--Section 2051 is amended by 
     adding at the end the following new subsection:
       ``(g) Notwithstanding any other provision of law, a 
     multifamily transitional housing project that is funded by a 
     loan guaranteed under this subchapter may accept 
     uncompensated voluntary services performed by any eligible 
     entity (as that term is defined in section 2011(d) of this 
     title) in connection with the construction, alteration, or 
     repair of such project.''.
       (b) Authorization for Commercially-Leased Space.--Section 
     2052(c)(1) is amended by striking ``services'' and inserting 
     ``services, other commercial activities,''.

     SEC. 403. INCREASE IN MAXIMUM AMOUNT OF HOME LOAN GUARANTY 
                   FOR CONSTRUCTION AND PURCHASE OF HOMES AND 
                   ANNUAL INDEXING OF AMOUNT.

       (a) Maximum Loan Guaranty Based on 100 Percent of Freddie 
     Mac Conforming Loan Rate.--Section 3703(a)(1) is amended by 
     striking ``$60,000'' each place it appears in subparagraphs 
     (A)(i)(IV) and (B) and inserting ``the maximum guaranty 
     amount (as defined in subparagraph (C))''.
       (b) Definition.--Such section is further amended by adding 
     at the end the following new subparagraph:
       ``(C) In this paragraph, the term `maximum guaranty amount' 
     means the dollar amount that is equal to 25 percent of the 
     Freddie Mac conforming loan limit limitation determined under 
     section 305(a)(2) of the Federal Home Loan Mortgage 
     Corporation Act (12 U.S.C. 1454(a)(2)) for a single-family 
     residence, as adjusted for the year involved.''.

     SEC. 404. EXTENSION OF AUTHORITY FOR GUARANTEE OF ADJUSTABLE 
                   RATE MORTGAGES.

        Section 3707(a) is amended by striking ``during fiscal 
     years 1993, 1994, and 1995'' and inserting ``during fiscal 
     years 1993 through 2008''.

     SEC. 405. EXTENSION AND IMPROVEMENT OF AUTHORITY FOR 
                   GUARANTEE OF HYBRID ADJUSTABLE RATE MORTGAGES.

       (a) Extension of Authority.--Subsection (a) of section 
     3707A is amended by striking ``during fiscal years 2004 and 
     2005'' and inserting ``during fiscal years 2004 through 
     2008''.
       (b) Modification of Interest Rate Adjustment 
     Requirements.--Subsection (c) of such section is amended--
       (1) by redesignating paragraph (4) as paragraph (5);
       (2) by striking paragraph (3) and inserting the following 
     new paragraphs:
       ``(3) in the case of the initial contract interest rate 
     adjustment--
       ``(A) if the initial contract interest rate remained fixed 
     for less than 5 years, be limited to a maximum increase or 
     decrease of 1 percentage point; or
       ``(B) if the initial contract interest rate remained fixed 
     for 5 years or more, be limited

[[Page 22068]]

     to a maximum increase or decrease of such percentage point or 
     points as the Secretary may prescribe;
       ``(4) in the case of any single annual interest rate 
     adjustment after the initial contract interest rate 
     adjustment, be limited to a maximum increase or decrease of 1 
     percentage point; and''; and
       (3) in paragraph (5), as so redesignated, by striking ``5 
     percentage points'' and all that follows and inserting ``such 
     number of percentage points as the Secretary shall prescribe 
     for purposes of this section.''.
       (c) No Effect on Guarantee of Loans Under Hybrid Adjustable 
     Rate Mortgage Guarantee Demonstration Project.--The 
     amendments made by this section shall not be construed to 
     affect the force or validity of any guarantee of a loan made 
     by the Secretary of Veterans Affairs under the demonstration 
     project for the guarantee of hybrid adjustable rate mortgages 
     under section 3707A of title 38, United States Code, as in 
     effect on the day before the date of the enactment of this 
     Act.

     SEC. 406. TERMINATION OF COLLECTION OF LOAN FEES FROM 
                   VETERANS RATED ELIGIBLE FOR COMPENSATION AT 
                   PRE-DISCHARGE RATING EXAMINATIONS.

        Section 3729(c) is amended--
       (1) by inserting ``(1)'' before ``A fee''; and
       (2) by adding at the end the following new paragraph:
       ``(2) A veteran who is rated eligible to receive 
     compensation as a result of a pre-discharge disability 
     examination and rating shall be treated as receiving 
     compensation for purposes of this subsection as of the date 
     on which the veteran is rated eligible to receive 
     compensation as a result of the pre-discharge disability 
     examination and rating without regard to whether an effective 
     date of the award of compensation is established as of that 
     date.''.

     SEC. 407. THREE-YEAR EXTENSION OF NATIVE AMERICAN VETERAN 
                   HOUSING LOAN PILOT PROGRAM.

       Section 3761(c) is amended by striking ``December 31, 
     2005'' and inserting ``December 31, 2008''.

                TITLE V--MATTERS RELATING TO FIDUCIARIES

     SEC. 501. DEFINITION OF FIDUCIARY.

       (a) In General.--(1) Chapter 55 is amended by adding at the 
     end the following new section:

     ``Sec. 5506. Definition of `fiduciary'

       ``For purposes of this chapter and chapter 61 of this 
     title, the term `fiduciary' means--
       ``(1) a person who is a guardian, curator, conservator, 
     committee, or person legally vested with the responsibility 
     or care of a claimant (or a claimant's estate) or of a 
     beneficiary (or a beneficiary's estate); or
       ``(2) any other person having been appointed in a 
     representative capacity to receive money paid under any of 
     the laws administered by the Secretary for the use and 
     benefit of a minor, incompetent, or other beneficiary.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``5506. Definition of `fiduciary'.''.

       (b) Conforming Amendments to Section 5502.--Section 5502 is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``other person'' and 
     inserting ``other fiduciary''; and
       (B) in the second sentence of paragraph (2), by inserting 
     ``for benefits under this title'' after ``in connection with 
     rendering fiduciary services'';
       (2) in subsection (b), by striking ``guardian, curator, 
     conservator, or other person'' each place it appears and 
     inserting ``fiduciary''; and
       (3) in subsection (d), by striking ``guardian, curator, or 
     conservator'' and inserting ``fiduciary''.
       (c) Conforming Amendment to Section 6101.--Section 6101(a) 
     is amended by striking ``guardian, curator,'' and all that 
     follows through ``beneficiary,'' and inserting ``fiduciary 
     (as defined in section 5506 of this title) for the benefit of 
     a minor, incompetent, or other beneficiary under laws 
     administered by the Secretary,''.

     SEC. 502. INQUIRY, INVESTIGATIONS, AND QUALIFICATION OF 
                   FIDUCIARIES.

       (a) In General.--Chapter 55, as amended by section 
     501(a)(1), is further amended by adding at the end the 
     following new section:

     ``Sec. 5507. Inquiry, investigations, and qualification of 
       fiduciaries

       ``(a) Any certification of a person for payment of benefits 
     of a beneficiary to that person as such beneficiary's 
     fiduciary under section 5502 of this title shall be made on 
     the basis of--
       ``(1) an inquiry or investigation by the Secretary of the 
     fitness of that person to serve as fiduciary for that 
     beneficiary, such inquiry or investigation--
       ``(A) to be conducted in advance of such certification;
       ``(B) to the extent practicable, to include a face-to-face 
     interview with such person; and
       ``(C) to the extent practicable, to include a copy of a 
     credit report for such person issued within one year of the 
     date of the proposed appointment;
       ``(2) adequate evidence that certification of that person 
     as fiduciary for that beneficiary is in the interest of such 
     beneficiary (as determined by the Secretary under 
     regulations); and
       ``(3) the furnishing of any bond that may be required by 
     the Secretary.
       ``(b) As part of any inquiry or investigation of any person 
     under subsection (a), the Secretary shall request information 
     concerning whether that person has been convicted of any 
     offense under Federal or State law which resulted in 
     imprisonment for more than one year. If that person has been 
     convicted of such an offense, the Secretary may certify the 
     person as a fiduciary only if the Secretary finds that the 
     person is an appropriate person to act as fiduciary for the 
     beneficiary concerned under the circumstances.
       ``(c)(1) In the case of a proposed fiduciary described in 
     paragraph (2), the Secretary, in conducting an inquiry or 
     investigation under subsection (a)(1), may carry out such 
     inquiry or investigation on an expedited basis that may 
     include waiver of any specific requirement relating to such 
     inquiry or investigation, including the otherwise applicable 
     provisions of subparagraphs (A), (B), and (C) of such 
     subsection. Any such inquiry or investigation carried out on 
     such an expedited basis shall be carried out under 
     regulations prescribed for purposes of this section.
       ``(2) Paragraph (1) applies with respect to a proposed 
     fiduciary who is--
       ``(A) the parent (natural, adopted, or stepparent) of a 
     beneficiary who is a minor;
       ``(B) the spouse or parent of an incompetent beneficiary;
       ``(C) a person who has been appointed a fiduciary of the 
     beneficiary by a court of competent jurisdiction; or
       ``(D) being appointed to manage an estate where the annual 
     amount of veterans benefits to be managed by the proposed 
     fiduciary does not exceed $3,600, as adjusted pursuant to 
     section 5312 of this title.
       ``(d) Temporary Fiduciaries.--When in the opinion of the 
     Secretary, a temporary fiduciary is needed in order to 
     protect the assets of the beneficiary while a determination 
     of incompetency is being made or appealed or a fiduciary is 
     appealing a determination of misuse, the Secretary may 
     appoint one or more temporary fiduciaries for a period not to 
     exceed 120 days. If a final decision has not been made within 
     120 days, the Secretary may not continue the appointment of 
     the fiduciary without obtaining a court order for appointment 
     of a guardian, conservator, or other fiduciary under the 
     authority provided in section 5502(b) of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the item 
     added by section 501(a)(2) the following new item:

``5507. Inquiry, investigations, and qualification of fiduciaries.''.

     SEC. 503. MISUSE OF BENEFITS BY FIDUCIARIES.

       (a) Protection of Veterans Benefits When Administered by 
     Fiduciaries.--(1) Chapter 61 is amended by adding at the end 
     the following new sections:

     ``Sec. 6106. Misuse of benefits by fiduciaries

       ``(a) Fee Forfeiture in Case of Benefit Misuse by 
     Fiduciaries.--A fiduciary may not collect a fee from a 
     beneficiary for any month with respect to which the Secretary 
     or a court of competent jurisdiction has determined that the 
     fiduciary misused all or part of the individual's benefit, 
     and any amount so collected by the fiduciary as a fee for 
     such month shall be treated as a misused part of the 
     individual's benefit.
       ``(b) Misuse of Benefits Defined.--For purposes of this 
     chapter, misuse of benefits by a fiduciary occurs in any case 
     in which the fiduciary receives payment, under any of laws 
     administered by the Secretary, for the use and benefit of a 
     beneficiary and uses such payment, or any part thereof, for a 
     use other than for the use and benefit of such beneficiary or 
     that beneficiary's dependents. Retention by a fiduciary of an 
     amount of a benefit payment as a fiduciary fee or commission, 
     or as attorney's fees (including expenses) and court costs, 
     if authorized by the Secretary or a court of competent 
     jurisdiction, shall be considered to be for the use or 
     benefit of such beneficiary.
       ``(c) Regulations.--The Secretary may prescribe by 
     regulation the meaning of the term `use and benefit' for 
     purposes of this section.

     ``Sec. 6107. Reissuance of benefits

       ``(a) Negligent Failure by Secretary.--(1) In any case in 
     which the negligent failure of the Secretary to investigate 
     or monitor a fiduciary results in misuse of benefits by the 
     fiduciary, the Secretary shall pay to the beneficiary or the 
     beneficiary's successor fiduciary an amount equal to the 
     amount of benefits that were so misused.
       ``(2) There shall be considered to have been a negligent 
     failure by the Secretary to investigate and monitor a 
     fiduciary in the following cases:
       ``(A) A case in which the Secretary failed to review a 
     fiduciary's accounting within 60 days of the date on which 
     that accounting is scheduled for review.
       ``(B) A case in which the Secretary was notified of 
     allegations of misuse, but failed to act within 60 days of 
     the date of such notification to terminate the fiduciary.
       ``(C) In any other case in which actual negligence is 
     shown.
       ``(b) Reissuance of Misused Benefits in Other Cases.--(1) 
     In any case in which a fiduciary described in paragraph (2) 
     misuses

[[Page 22069]]

     all or part of an individual's benefit paid to such 
     fiduciary, the Secretary shall pay to the beneficiary or the 
     beneficiary's successor fiduciary an amount equal to the 
     amount of such benefit so misused.
       ``(2) Paragraph (1) applies to a fiduciary that--
       ``(A) is not an individual; or
       ``(B) is an individual who, for any month during a period 
     when misuse occurs, serves 10 or more individuals who are 
     beneficiaries under this title.
       ``(3) In any other case in which the Secretary obtains 
     recoupment from a fiduciary who has misused benefits, the 
     Secretary shall promptly remit payment of the recouped 
     amounts to the beneficiary or the beneficiary's successor 
     fiduciary as the case may be.
       ``(c) Limitation on Total Amount Paid.--The total of the 
     amounts paid to a beneficiary (or a beneficiary's successor 
     fiduciary) under this section may not exceed the total 
     benefit amount misused by the fiduciary with respect to that 
     beneficiary.
       ``(d) Recoupment of Amounts Reissued.--In any case in which 
     the Secretary reissues a benefit payment (in whole or in 
     part) under subsection (a) or (b), the Secretary shall make a 
     good faith effort to obtain recoupment from the fiduciary to 
     whom the payment was originally made.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new items:

``6106. Misuse of benefits by fiduciaries.
``6107. Reissuance of benefits.''.

     SEC. 504. ADDITIONAL PROTECTIONS FOR BENEFICIARIES WITH 
                   FIDUCIARIES.

       (a) Onsite Reviews and Required Accountings.--(1) Chapter 
     55, as amended by section 502(a), is further amended by 
     adding at the end the following new sections:

     ``Sec. 5508. Periodic onsite reviews of institutional 
       fiduciaries

       ``In addition to such other reviews of fiduciaries as the 
     Secretary may otherwise conduct, the Secretary shall provide 
     for the periodic onsite review of any person or agency 
     located in the United States that receives the benefits 
     payable under laws administered by the Secretary to another 
     individual pursuant to the appointment of such person or 
     agency as a fiduciary under section 5502(a)(1) of this title 
     in any case in which the fiduciary is serving in that 
     capacity with respect to more than 20 beneficiaries and the 
     total annual amount of such benefits exceeds $50,000, as 
     adjusted pursuant to section 5312 of this title.

     ``Sec. 5509. Authority to require fiduciary to receive 
       payments at regional offices of the Department when failing 
       to provide required accounting

       ``(a) Required Reports and Accountings.--The Secretary may 
     require a fiduciary to file a report or accounting pursuant 
     to regulations prescribed by the Secretary.
       ``(b) Actions Upon Failure to File.--In any case in which a 
     fiduciary fails to submit a report or accounting required by 
     the Secretary under subsection (a), the Secretary may, after 
     furnishing notice to such fiduciary and the beneficiary 
     entitled to such payment of benefits, require that such 
     fiduciary appear in person at a regional office of the 
     Department serving the area in which the beneficiary resides 
     in order to receive such payments.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item added by section 502(b) 
     the following new items:

``5508. Periodic onsite reviews of institutional fiduciaries.
``5509. Authority to require fiduciary to receive payments at regional 
              offices of the Department when failing to provide 
              required accounting.''.
       (b) Judicial Orders of Restitution.--(1) Chapter 61, as 
     amended by section 503(a), is further amended by adding at 
     the end the following new section:

     ``Sec. 6108. Authority for judicial orders of restitution

       ``(a) Any Federal court, when sentencing a defendant 
     convicted of an offense arising from the misuse of benefits 
     under this title, may order, in addition to or in lieu of any 
     other penalty authorized by law, that the defendant make 
     restitution to the Department.
       ``(b) Sections 3612, 3663, and 3664 of title 18 shall apply 
     with respect to the issuance and enforcement of orders of 
     restitution under subsection (a). In so applying those 
     sections, the Department shall be considered the victim.
       ``(c) If the court does not order restitution, or orders 
     only partial restitution, under subsection (a), the court 
     shall state on the record the reasons therefor.
       ``(d) Amounts received in connection with misuse by a 
     fiduciary of funds paid as benefits under laws administered 
     by the Secretary shall be paid to the individual whose 
     benefits were misused. If the Secretary has previously 
     reissued the misused benefits, the amounts shall be treated 
     in the same manner as overpayments recouped by the Secretary 
     and shall be deposited to the credit of the applicable 
     revolving fund, trust fund, or appropriation.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item added by section 503(b) 
     the following new item:

``6108. Authority for judicial orders of restitution.''.

     SEC. 505. ANNUAL REPORT.

       (a) In General.--Chapter 55, as amended by section 
     504(a)(1), is further amended by adding at the end the 
     following new section:

     ``Sec. 5510. Annual report

       ``The Secretary shall include in the Annual Benefits Report 
     of the Veterans Benefits Administration or the Secretary's 
     Annual Performance and Accountability Report information 
     concerning fiduciaries who have been appointed to receive 
     payments for beneficiaries of the Department. As part of such 
     information, the Secretary shall separately set forth the 
     following: --
       ``(1) The number of beneficiaries in each category 
     (veteran, surviving spouse, child, adult disabled child, or 
     parent).
       ``(2) The types of benefit being paid (compensation, 
     pension, dependency and indemnity compensation, death pension 
     or benefits payable to a disabled child under chapter 18 of 
     this title).
       ``(3) The total annual amounts and average annual amounts 
     of benefits paid to fiduciaries for each category and type of 
     benefit.
       ``(4) The number of fiduciaries who are the spouse, parent, 
     legal custodian, court-appointed fiduciary, institutional 
     fiduciary, custodian in fact, and supervised direct payees.
       ``(5) The number of cases in which the fiduciary was 
     changed by the Secretary because of a finding that benefits 
     had been misused.
       ``(6) How such cases of misuse of benefits were addressed 
     by the Secretary.
       ``(7) The final disposition of such cases of misuse of 
     benefits, including the number and dollar amount of any 
     benefits reissued to beneficiaries.
       ``(8) The number of fiduciary cases referred to the Office 
     of the Inspector General and the nature of the actions taken 
     by the Inspector General.
       ``(9) The total amount of money recovered by the government 
     in cases arising from the misuse of benefits by a fiduciary.
       ``(10) Such other information as the Secretary considers 
     appropriate.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the 
     items added by the amendment made by section 504(a)(2) the 
     following new item:

``5510. Annual report.''.

     SEC. 506. ANNUAL ADJUSTMENT IN BENEFITS THRESHOLDS.

       Section 5312(b)(1) is amended by inserting ``and the annual 
     benefit amount limitations under sections 5507(c)(2)(D) and 
     5508 of this title,'' after ``(d)(3) of such section,''.

     SEC. 507. EFFECTIVE DATES.

       (a) In General.--Except as otherwise provided, this title 
     and the amendments made by this title shall take effect on 
     the first day of the seventh month beginning after the date 
     of the enactment of this Act.
       (b) Special Rules.--(1) Section 5510 of title 38, United 
     States Code, as added by section 505(a), shall take effect on 
     the date of the enactment of this Act.
       (2) Sections 6106 and 6107 of title 38, United States Code, 
     as added by section 503(a), shall apply with respect to any 
     determinations by the Secretary of Veterans Affairs made 
     after the date of the enactment of this Act of misuse of 
     funds by a fiduciary.

                   TITLE VI--MEMORIAL AFFAIRS MATTERS

     SEC. 601. DESIGNATION OF PRISONER OF WAR/MISSING IN ACTION 
                   NATIONAL MEMORIAL, RIVERSIDE NATIONAL CEMETERY, 
                   RIVERSIDE, CALIFORNIA.

       (a) Designation.--The memorial to former prisoners of war 
     and members of the Armed Forces listed as missing in action 
     that is under construction at Riverside National Cemetery in 
     Riverside, California, is hereby designated: ``Prisoner of 
     War/Missing in Action National Memorial''.
       (b) Effect of Designation.--Such national memorial 
     designated by subsection (a) is not a unit of the National 
     Park System, and the designation of the national memorial 
     shall not be construed to require Federal funds to be 
     expended for any purpose related to the national memorial.

     SEC. 602. LEASE OF CERTAIN NATIONAL CEMETERY ADMINISTRATION 
                   PROPERTY.

       (a) In General.--Chapter 24 is amended by adding at the end 
     the following new section:

     ``Sec. 2412. Lease of land and buildings

       ``(a) Lease Authorized.--The Secretary may lease any 
     undeveloped land and unused or underutilized buildings, or 
     parts or parcels thereof, belonging to the United States and 
     part of the National Cemetery Administration.
       ``(b) Term.--The term of a lease under subsection (a) may 
     not exceed 10 years.
       ``(c) Lease to Public or Nonprofit Organizations.--(1) A 
     lease under subsection (a) to any public or nonprofit 
     organization may be made without regard to the provisions of 
     section 3709 of the Revised Statutes (41 U.S.C. 5).
       ``(2) Notwithstanding section 1302 of title 40 or any other 
     provision of law, a lease under subsection (a) to any public 
     or nonprofit organization may provide for the maintenance, 
     protection, or restoration of the leased property by the 
     lessee, as a part or all of the consideration for the lease.

[[Page 22070]]

       ``(d) Notice.--Before entering into a lease under 
     subsection (a), the Secretary shall give appropriate public 
     notice of the intention of the Secretary to enter into the 
     lease in a newspaper of general circulation in the community 
     in which the lands or buildings concerned are located.
       ``(e) National Cemetery Administration Facilities Operation 
     Fund.--(1) There is established on the book of the Treasury 
     an account to be known as the `National Cemetery 
     Administration Facilities Operation Fund' (in this section 
     referred to as the `Fund').
       ``(2) The Fund shall consist of the following:
       ``(A) Proceeds from the lease of land or buildings under 
     this section.
       ``(B) Proceeds of agricultural licenses of lands of the 
     National Cemetery Administration.
       ``(C) Any other amounts appropriated to or otherwise 
     authorized for deposit in the Fund by law.
       ``(3) Amounts in the Fund shall be available to cover costs 
     incurred by the National Cemetery Administration in the 
     operation and maintenance of property of the Administration.
       ``(4) Amounts in the Fund shall remain available until 
     expended.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2412. Lease of land and buildings.''.

     SEC. 603. EXCHANGES OF REAL PROPERTY FOR NATIONAL CEMETERIES.

       Section 2406 is amended by inserting ``exchange,'' after 
     ``agencies,''.

       TITLE VII--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

     SEC. 701. CLARIFICATION OF MEANING OF ``JUDGMENT'' AS USED IN 
                   THE ACT.

        Section 101 of the Servicemembers Civil Relief Act (50 
     U.S.C. App. 511) is amended by adding at the end the 
     following new paragraph:
       ``(9) Judgment.--The term `judgment' means any judgment, 
     decree, order, or ruling, final or temporary.''.

     SEC. 702. REQUIREMENTS RELATING TO WAIVER OF RIGHTS UNDER THE 
                   ACT.

        Section 107 of the Servicemembers Civil Relief Act (50 
     U.S.C. App. 517) is amended--
       (1) in subsection (a), by inserting after the first 
     sentence the following new sentence: ``Any such waiver that 
     applies to an action listed in subsection (b) of this section 
     is effective only if it is in writing and is executed as an 
     instrument separate from the obligation or liability to which 
     it applies.'';
       (2) by redesignating subsection (c) as subsection (d); and
       (3) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Prominent Display of Certain Contract Rights 
     Waivers.--Any waiver in writing of a right or protection 
     provided by this Act that applies to a contract, lease, or 
     similar legal instrument must be in at least 12 point 
     type.''.

     SEC. 703. RIGHT OF SERVICEMEMBER PLAINTIFFS TO REQUEST STAY 
                   OF CIVIL PROCEEDINGS.

        Section 202(a) of the Servicemembers Civil Relief Act (50 
     U.S.C. App. 522(a)) is amended by inserting ``plaintiff or'' 
     before ``defendant''.

     SEC. 704. TERMINATION OF LEASES.

       (a) Joint Leases.--Subsection (a) of section 305 of the 
     Servicemembers Civil Relief Act (50 U.S.C. App. 535) is 
     amended to read as follows:
       ``(a) Termination by Lessee.--
       ``(1) In general.--The lessee on a lease described in 
     subsection (b) may, at the lessee's option, terminate the 
     lease at any time after--
       ``(A) the lessee's entry into military service; or
       ``(B) the date of the lessee's military orders described in 
     paragraph (1)(B) or (2)(B) of subsection (b), as the case may 
     be.
       ``(2) Joint leases.--A lessee's termination of a lease 
     pursuant to this subsection shall terminate any obligation a 
     dependent of the lessee may have under the lease.''.
       (b) Motor Vehicles Leases.--
       (1) Applicability to pcs orders from states outside 
     conus.--Subparagraph (B) of subsection (b)(2) of such section 
     is amended by striking ``military orders for'' and all that 
     follows through ``or to deploy'' and inserting ``military 
     orders--
       ``(i) for a change of permanent station--

       ``(I) from a location in the continental United States to a 
     location outside the continental United States; or
       ``(II) from a location in a State outside the continental 
     United States to any location outside that State; or

       ``(ii) to deploy''.
       (2) Definitions.--Such section is further amended by adding 
     at the end the following new subsection:
       ``(i) Definitions.--
       ``(1) Military orders.--The term `military orders', with 
     respect to a servicemember, means official military orders, 
     or any notification, certification, or verification from the 
     servicemember's commanding officer, with respect to the 
     servicemember's current or future military duty status.
       ``(2) Conus.--The term `continental United States' means 
     the 48 contiguous States and the District of Columbia.''.
       (c) Coverage of Individual Deployments.--Subsection (b) of 
     such section is further amended in paragraph (1)(B) and 
     paragraph (2)(B)(ii) (as designated by subsection (b) of this 
     section) by inserting ``, or as an individual in support of a 
     military operation,'' after ``deploy with a military unit''.

                       TITLE VIII--OTHER MATTERS

     SEC. 801. PRINCIPAL OFFICE OF UNITED STATES COURT OF APPEALS 
                   FOR VETERANS CLAIMS.

        Section 7255 is amended by striking ``District of 
     Columbia'' and inserting ``Washington, D.C., metropolitan 
     area''.

     SEC. 802. TECHNICAL AMENDMENTS RELATING TO THE UNITED STATES 
                   COURT OF APPEALS FOR VETERANS CLAIMS.

       (a) Restoration of Prior Provision Relating to Chief 
     Judge.--Section 7253(d)(1) is amended by inserting after 
     ``(1)'' the following: ``The chief judge of the Court is the 
     head of the Court.''.
       (b) Capitalization Amendments.--Section 7253(d)(4)(A) is 
     amended by striking ``court'' in clauses (i) and (ii) and 
     inserting ``Court''.
       (c) Date of Enactment Reference.--Section 7253(h)(4) is 
     amended by striking ``the date of the enactment of this 
     subsection'' and inserting ``December 27, 2001,''.

     SEC. 803. EXTENSION OF BIENNIAL REPORT OF ADVISORY COMMITTEE 
                   ON FORMER PRISONERS OF WAR.

        Section 541(c)(1) is amended by striking ``2003'' and 
     inserting ``2009''.

     SEC. 804. AVAILABILITY OF ADMINISTRATIVE AND JUDICIAL REDRESS 
                   FOR CERTAIN VETERANS DENIED OPPORTUNITY TO 
                   COMPETE FOR FEDERAL EMPLOYMENT.

       (a) Administrative Redress.--Section 3330a(a)(1) of title 
     5, United States Code, is amended--
       (1) by inserting ``(A)'' after ``(1)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) A veteran described in section 3304(f)(1) who alleges 
     that an agency has violated such section with respect to such 
     veteran may file a complaint with the Secretary of Labor.''.
       (b) Judicial Redress.--Section 3330b(a) is amended by 
     inserting ``, or a veteran described by section 
     3330a(a)(1)(B) with respect to a violation described by such 
     section,'' after ``a preference eligible''.

     SEC. 805. REPORT ON SERVICEMEMBERS' AND VETERANS' AWARENESS 
                   OF BENEFITS AND SERVICES AVAILABLE UNDER LAWS 
                   ADMINISTERED BY SECRETARY OF VETERANS AFFAIRS.

       (a) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of Veterans Affairs 
     shall submit to Congress a report setting forth a detailed 
     description of (1) the outreach efforts of the Department of 
     Veterans Affairs, as of the date of the enactment of this 
     Act, to inform members of the uniformed services and veterans 
     (and their family members and survivors) of the benefits and 
     services to which they are entitled under laws administered 
     by the Secretary, and (2) the current level of awareness of 
     those members and veterans (and family members and survivors) 
     of those benefits and services.
       (b) Matters to Be Included.--The report under subsection 
     (a) shall include the following:
       (1) A description of the outreach activities conducted by 
     the Secretary in each of the three Administrations of the 
     Department of Veterans Affairs and outreach activities 
     conducted by other entities within the Department.
       (2) The results of a national survey, conducted as 
     described in subsection (c), to ascertain servicemembers' and 
     veterans' level of awareness of benefits and services 
     referred to in subsection (a) and whether servicemembers and 
     veterans know how to access those benefits and services.
       (3) Recommendations by the Secretary on how outreach and 
     awareness activities to veterans and servicemembers may be 
     improved.
       (c) Conduct of Survey.--The survey conducted for purposes 
     of subsection (b)(2) shall be conducted in a manner to 
     include a statistically valid sample of persons in each of 
     the following groups:
       (1) World War II veterans.
       (2) Korean conflict era veterans.
       (3) Vietnam era veterans.
       (4) Persian Gulf era veterans.
       (5) Active duty servicemembers.
       (6) National Guard and Reserve members activated under 
     title 10, United States Code.
       (7) Family members and survivors.

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