[Congressional Record (Bound Edition), Volume 150 (2004), Part 16]
[Senate]
[Pages 22073-22086]
[From the U.S. Government Publishing Office, www.gpo.gov]




              VETERANS' BENEFITS IMPROVEMENTS ACT OF 2004

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 706, S. 2486, 
the veterans' non-health care benefits bill.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A 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 of 
     benefits for veterans, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Veterans' Affairs with an 
amendment to strike all after the enacting clause and insert in lieu 
thereof the following:
  (Strike the part shown in black brackets and insert the part shown in 
italic.)

                                S. 2486

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

     [SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       [(a) Short Title.--This Act may be cited as the ``Veterans' 
     Benefits Improvements 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. References to title 38, United States Code.

                      [TITLE I--EDUCATION BENEFITS

[Sec. 101. Increase in maximum amount of contribution for increased 
              amount of basic educational assistance under Montgomery 
              GI Bill.
[Sec. 102. Pilot program on additional two-year period for use of 
              entitlement by participants in Montgomery GI Bill for 
              vocational or job readiness training.
[Sec. 103. Exclusion of veterans education benefits in determination of 
              eligibility or amount of Federal educational grants and 
              loans.
[Sec. 104. Collection of contributions for educational assistance under 
              Montgomery GI Bill from Reserves called to active duty.

                      [TITLE II--HOUSING BENEFITS

[Sec. 201. Increase in maximum amount of housing loan guarantee.
[Sec. 202. Permanent authority for guarantee of adjustable rate 
              mortgages.
[Sec. 203. Permanent authority for guarantee of hybrid adjustable rate 
              mortgages and modification of guarantee authority.
[Sec. 204. Termination of collection of loan fees from veterans rated 
              eligible for compensation at pre-discharge rating 
              examinations.

            [TITLE III--OTHER BENEFITS AND BENEFITS MATTERS

                    [Subtitle A--Employment Benefits

[Sec. 301. Availability of administrative and judicial redress for 
              certain veterans denied opportunity to compete for 
              Federal employment.

                     [Subtitle B--Medical Benefits

[Sec. 311. Prohibition on collection of copayments for hospice care.

       [Subtitle C--Extension of Benefits and Related Authorities

[Sec. 321. Extension of various authorities relating to benefits for 
              veterans.

                       [Subtitle D--Other Matters

[Sec. 331. Modification of definition of minority group member for 
              purposes of Advisory Committee on Minority Veterans.

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

       [Except as otherwise expressly provided, whenever in this 
     Act an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of title 38, United States Code.

                      [TITLE I--EDUCATION BENEFITS

     [SEC. 101. INCREASE IN MAXIMUM AMOUNT OF CONTRIBUTION FOR 
                   INCREASED AMOUNT OF BASIC EDUCATIONAL 
                   ASSISTANCE UNDER MONTGOMERY GI BILL.

       [(a) Active Duty Benefit.--Section 3011(e)(3) is amended by 
     striking ``$600'' and inserting ``$2,000''.
       [(b) Selected Reserve Benefit.--Section 3012(f)(3) is 
     amended by striking ``$600'' and inserting ``$2,000''.

     [SEC. 102. PILOT PROGRAM ON ADDITIONAL TWO-YEAR PERIOD FOR 
                   USE OF ENTITLEMENT BY PARTICIPANTS IN 
                   MONTGOMERY GI BILL FOR VOCATIONAL OR JOB 
                   READINESS TRAINING.

       [(a) In General.--(1) Subchapter I of chapter 30 is amended 
     by adding at the end the following new section:

[[Page 22074]]



     [``Sec. 3020A. Additional two-year period for use of 
       entitlement for vocational or job readiness instruction or 
       training: pilot program

       [``(a) Pilot Program Required.--(1) The Secretary shall 
     carry out a pilot program to assess the feasibility and 
     advisability of permitting individuals whose entitlement to 
     basic educational assistance under this chapter expires under 
     section 3031 of this title before their complete use of such 
     entitlement to be entitled to an additional two-year period 
     for their use of such entitlement.
       [``(2) The pilot program shall commence six months after 
     the date of the enactment of this section, and shall 
     terminate four years after the date of the commencement of 
     the pilot program.
       [``(b) Additional Two-Year Period of Entitlement.--
     Notwithstanding any provision of section 3031 of this title, 
     an individual described in subsection (c) shall, at the 
     expiration of the 10-year period beginning on the educational 
     assistance entitlement commencement date of such individual, 
     be entitled to an additional two-year period for the use of 
     entitlement to basic educational assistance under this 
     chapter.
       [``(c) Eligible Individuals.--(1) An individual described 
     in this subsection is any individual who--
       [``(A) as of the end of the 10-year period beginning on the 
     educational assistance entitlement commencement date of such 
     individual--
       [``(i) would remain entitled to basic educational 
     assistance under this chapter but for the expiration of the 
     10-year delimiting period applicable to such individual under 
     section 3031 of this title; and
       [``(ii) has not utilized all of the entitlement of such 
     individual to basic educational assistance under this 
     chapter; and
       [``(B) at the time of the application for entitlement under 
     this subsection (d), is accepted, enrolled, or otherwise 
     participating (as determined by the Secretary) in instruction 
     or training described in subsection (e).
       [``(2) This subsection does not apply to an individual 
     otherwise described by paragraph (1) whose remaining 
     entitlement to basic educational assistance under this 
     chapter as described in subparagraph (A)(ii) of that 
     paragraph is based on the transfer of basic educational 
     assistance under section 3020 of this title.
       [``(d) Application.--(1) An individual seeking an 
     additional two-year period for the use of entitlement under 
     this section shall submit to the Secretary an application 
     therefor containing such information as the Secretary may 
     require for purposes of this section.
       [``(2) The Secretary may not receive applications under 
     this subsection after the termination date of the pilot 
     program under subsection (a)(2).
       [``(e) Commencement of Additional Period for Use.--The 
     additional two-year period for the use of entitlement by an 
     individual under this section shall commence on the date the 
     application of the individual under subsection (d) is 
     received by the Secretary if the Secretary determines 
     pursuant to a review of the application that the individual 
     is an individual described by subsection (c) for purposes of 
     this section.
       [``(f) Instruction or Training Covered by Additional Period 
     for Use.--(1) The instruction or training for which 
     entitlement to basic educational assistance under this 
     chapter may be used during the additional two-year period for 
     the use of entitlement under this section is as follows:
       [``(A) Education leading to employment in a high technology 
     industry for purposes of section 3014A of this title.
       [``(B) A full-time program of apprenticeship or other on-
     job training approved as provided in clause (1) or (2), as 
     appropriate, of section 3687 of this title.
       [``(C) A cooperative program (as defined in section 
     3482(a)(2) of this title).
       [``(D) A licensing or certification test approved under 
     section 3689 of this title.
       [``(E) Training or education leading toward a professional 
     or vocational objective which has been approved in accordance 
     with the provisions of subchapter I of chapter 36 of this 
     title and is identified by the Secretary in regulations to be 
     prescribed by the Secretary for purposes of this section.
       [``(2) Entitlement to basic educational assistance under 
     this chapter may not be used during the additional two-year 
     period for the use of entitlement under this section for the 
     instruction or training as follows:
       [``(A) General education leading toward a standard college 
     degree (as defined in section 3452(g) of this title), unless 
     the program or training concerned will result in an 
     associates degree that is approved by the Secretary in the 
     manner specified in paragraph (1)(E) to be necessary to 
     obtain a professional or vocational objective.
       [``(B) Preparatory courses for a test that is required or 
     used for admission to an institution of higher education or 
     graduate school.
       [``(g) Coordination With Certain Other Benefits.--(1) An 
     individual entitled to basic educational assistance under 
     subsection (c) is entitled to educational and vocational 
     counseling under section 3697A of this title in connection 
     with the use of entitlement under this section.
       [``(2) An individual using entitlement to basic educational 
     assistance under this chapter during the additional two-year 
     period for the use of entitlement under this section is not 
     entitled during the use of such entitlement to the following:
       [``(A) Supplemental educational assistance under subchapter 
     III of this chapter.
       [``(B) A work-study allowance under section 3485 of this 
     title.
       [``(h) Educational Assistance Entitlement Commencement Date 
     Defined.--In this section, the term `educational assistance 
     entitlement commencement date', in the case of an individual 
     described in subsection (b)(1), means the date on which 
     begins the period during which the individual may use the 
     individual's entitlement to educational assistance under 
     chapter as determined under section 3031 of this title.
       [``(i) Effect of Termination of Pilot Program.--The 
     termination of the pilot program under subsection (a)(2) 
     shall not effect the continuing use of entitlement under this 
     section of any individual whose additional two-year period 
     for the use of entitlement under this section continues after 
     the date of the termination of the pilot program under that 
     subsection.''.
       [(2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     3020 the following new item:

[``3020A. Additional two-year period for use of entitlement for 
              vocational or job readiness instruction or training: 
              pilot program.''.

       [(b) Cross-Reference Amendment.--Section 3031 is amended--
       [(1) in subsection (a), by striking ``subsections (b) 
     through (g), and subject to subsection (h),'' and inserting 
     ``subsections (b) through (h), and subject to subsection 
     (i),'';
       [(2) by redesignating subsection (h) as subsection (i); and
       [(3) by inserting after subsection (g) the following new 
     subsection (h):
       [``(h) An individual whose period for the use of 
     entitlement to basic educational assistance under this 
     chapter would otherwise expire under this section may be 
     eligible for an additional two-year period for the use of 
     entitlement under section 3020A of this title.''.

     [SEC. 103. EXCLUSION OF VETERANS EDUCATION BENEFITS IN 
                   DETERMINATION OF ELIGIBILITY OR AMOUNT OF 
                   FEDERAL EDUCATIONAL GRANTS AND LOANS.

       [(a) In General.--(1) Subchapter II of chapter 36 is 
     amended by inserting after section 3694 the following new 
     section:

     [``Sec. 3694A. Exclusion of veterans education benefits in 
       determination of eligibility or amount of Federal education 
       grants and loans

       [``(a) Exclusion.--Notwithstanding any other provision of 
     law and subject to subsection (b), education benefits shall 
     not be considered as income, assets, or other monetary 
     resource in determining eligibility for, or the amount of, 
     grant or loan assistance provided under title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
       [``(b) Exception.--In the case of campus-based student 
     financial assistance, the amount of such assistance for which 
     an individual would otherwise be eligible without taking into 
     consideration education benefits as described in subsection 
     (a) shall be reduced to the extent that the sum of such 
     amount, the amount of the education benefits of the 
     individual, and the amount of the Federal Pell Grant, if any, 
     of the individual exceeds the cost of attendance of the 
     individual.
       [``(c) Definitions.--In this section:
       [``(1) The term `campus-based student financial assistance' 
     means grant, work, or loan assistance provided under subpart 
     3 of part A, and parts C and E of title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1070b et seq; 42 U.S.C. 2751 
     et seq.; 20 U.S.C. 1087aa et seq.).
       [``(2) The term `cost of attendance' has the meaning given 
     such term in section 472 of the Higher Education Act of 1965 
     (20 U.S.C. 1087ll).
       [``(3) The term `education benefits' means education 
     benefits under chapters 30, 32, and 35 of this title and 
     under chapter 1606 of title 10.
       [``(4) The term `Federal Pell Grant' means a grant provided 
     under subpart 1 of part A of title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1070a).''.
       [(2) The table of sections at the beginning of chapter 36 
     is amended by inserting after the item referring to section 
     3694 the following new item:

[``3694A. Exclusion of veterans education benefits in determination of 
              eligibility or amount of Federal education grants and 
              loans.''.

       [(b) Effective Date.--The amendments made by this section 
     shall be effective with respect to award years, as that term 
     is defined in section 481(a)(1) of the Higher Education Act 
     of 1965 (20 U.S.C. 1088(a)(1)), beginning on or after July 1, 
     2004.

     [SEC. 104. COLLECTION OF CONTRIBUTIONS FOR EDUCATIONAL 
                   ASSISTANCE UNDER MONTGOMERY GI BILL FROM 
                   RESERVES 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), 
     indenting the left margin of

[[Page 22075]]

     such paragraph, as so designated, two ems, 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 Reserve, the Secretary shall collect from the 
     individual an amount equal to $1,200 before the commencement 
     by the individual of the use of entitlement to basic 
     educational assistance under this chapter. The Secretary may 
     collect such amount through reductions in basic pay in 
     accordance with paragraph (1) or through such other method as 
     the Secretary determines 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), 
     indenting the left margin of such paragraph, as so 
     designated, two ems, 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 Reserve, the Secretary shall collect from the 
     individual an amount equal to $1,200 before the commencement 
     by the individual of the use of entitlement to basic 
     educational assistance under this chapter. The Secretary may 
     collect such amount through reductions in basic pay in 
     accordance with paragraph (1) or through such other method as 
     the Secretary determines appropriate.''.

                      [TITLE II--HOUSING BENEFITS

     [SEC. 201. INCREASE IN MAXIMUM AMOUNT OF HOUSING LOAN 
                   GUARANTEE.

       [(a) In General.--Subparagraph (A)(i)(IV) of section 
     3703(a)(1) is amended by striking ``$60,000'' and inserting 
     ``$83,425''.
       [(b) Conforming Amendment.--Subparagraph (B) of such 
     section is amended by striking ``$60,000'' and inserting 
     ``$83,425''.

     [SEC. 202. PERMANENT AUTHORITY FOR GUARANTEE OF ADJUSTABLE 
                   RATE MORTGAGES.

       [Section 3707(a) is amended by striking ``The Secretary 
     shall'' and all that follows through ``guaranteeing loans'' 
     and inserting ``The Secretary shall guarantee loans''.

     [SEC. 203. PERMANENT AUTHORITY FOR GUARANTEE OF HYBRID 
                   ADJUSTABLE RATE MORTGAGES AND MODIFICATION OF 
                   GUARANTEE AUTHORITY.

       [(a) Permanent Authority.--Subsection (a) of section 3707A 
     is amended by striking ``The Secretary shall'' and all that 
     follows through ``guaranteeing loans'' and inserting ``The 
     Secretary shall guarantee loans''.
       [(b) Modification of Interest Rate Adjustment 
     Requirements.--Subsection (c) of such section is amended--
       [(1) by striking paragraph (3) and inserting the following 
     new paragraph (3):
       [``(3) in the case of the initial interest rate adjustment 
     under such provisions, be limited to a maximum increase or 
     decrease of 1 percentage point if the interest rate remained 
     fixed for 3 or fewer years; and''; and
       [(2) in paragraph (4), 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. 204. 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.''.

            [TITLE III--OTHER BENEFITS AND BENEFITS MATTERS

                    [Subtitle A--Employment Benefits

     [SEC. 301. 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)(1) of such title 
     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''.

                     [Subtitle B--Medical Benefits

     [SEC. 311. PROHIBITION ON COLLECTION OF COPAYMENTS FOR 
                   HOSPICE CARE.

       [Section 1710B(c)(2) is amended--
       [(1) in subparagraph (A), by striking ``or'' at the end;
       [(2) by redesignating subparagraph (B) as subparagraph (C); 
     and
       [(3) by inserting after subparagraph (A) the following new 
     subparagraph (B):
       [``(B) to a veteran being furnished hospice care under this 
     section; or''.

       [Subtitle C--Extension of Benefits and Related Authorities

     [SEC. 321. EXTENSION OF VARIOUS AUTHORITIES RELATING TO 
                   BENEFITS FOR VETERANS.

       [(a) Six-Year Extension of Biennial Report of Advisory 
     Committee on Former Prisoners of War.--Section 541(c)(1) is 
     amended by striking ``2003'' and inserting ``2009''.
       [(b) Permanent Authority for Counseling and Treatment for 
     Sexual Trauma.--Section 1720D(a) is amended--
       [(1) in paragraph (1), by striking ``During the period 
     through December 31, 2004, the Secretary'' and inserting 
     ``The Secretary''; and
       [(2) in paragraph (2), by striking ``, during the period 
     through December 31, 2004,''.
       [(c) Five-Year Extension of Reports by Special Medical 
     Advisory Group.--Section 7312(d) is amended by striking 
     ``December 31, 2004'' and inserting ``December 31, 2009''.

                       [Subtitle D--Other Matters

     [SEC. 331. MODIFICATION OF DEFINITION OF MINORITY GROUP 
                   MEMBER FOR PURPOSES OF ADVISORY COMMITTEE ON 
                   MINORITY VETERANS.

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Veterans' 
     Benefits Improvements 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. References to title 38, United States Code.

                        TITLE I--HOUSING MATTERS

Sec. 101. Increase in maximum amount of home loan guaranty for 
              construction and purchase of homes and annual indexing of 
              amount.
Sec. 102. Extension of authority for guarantee of adjustable rate 
              mortgages.
Sec. 103. Extension and improvement of authority for guarantee of 
              hybrid adjustable rate mortgages.
Sec. 104. Termination of collection of loan fees from veterans rated 
              eligible for compensation at pre-discharge rating 
              examinations.

                      TITLE II--EDUCATION MATTERS

Sec. 201. Collection of contributions for educational assistance under 
              Montgomery GI Bill from members of the Selected Reserve 
              called to active duty.
Sec. 202. Educational assistance under Montgomery GI Bill for members 
              of the Selected Reserve who aggregate 2 or more years of 
              active duty service during any 5-year period.
Sec. 203. Ten-year extension of delimiting period for survivors' and 
              dependents' educational assistance for spouses of members 
              who die on active duty.
Sec. 204. Availability of education benefits for payment for national 
              admissions exams and national exams for credit at 
              institutions of higher education.

                        TITLE III--OTHER MATTERS

Sec. 301. Availability of administrative and judicial redress for 
              certain veterans denied opportunity to compete for 
              Federal employment.
Sec. 302. Extension of biennial report of Advisory Committee on Former 
              Prisoners of War.
Sec. 303. Modification of definition of minority group member for 
              purposes of Advisory Committee on Minority Veterans.

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

       Except as otherwise expressly provided, whenever in this 
     Act an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference

[[Page 22076]]

     shall be considered to be made to a section or other 
     provision of title 38, United States Code.

                        TITLE I--HOUSING MATTERS

     SEC. 101. 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. 102. 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 2011''.

     SEC. 103. 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 
     2011''.
       (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 interest rate adjustment--
       ``(A) if the initial 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 interest rate remained fixed for 5 
     years or more, be limited 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 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. 104. 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.''.

                      TITLE II--EDUCATION MATTERS

     SEC. 201. COLLECTION OF CONTRIBUTIONS 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), 
     indenting the left margin of such paragraph, as so 
     designated, two ems, 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 Reserve, the Secretary of Defense shall collect from 
     the individual an amount equal to $1,200 before the 
     commencement by the individual of the use of entitlement to 
     basic educational assistance under this chapter. 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), 
     indenting the left margin of such paragraph, as so 
     designated, two ems, 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 Reserve, the Secretary of Defense shall collect from 
     the individual an amount equal to $1,200 before the 
     commencement by the individual of the use of entitlement to 
     basic educational assistance under this chapter. 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. 202. EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL FOR 
                   MEMBERS OF THE SELECTED RESERVE WHO AGGREGATE 2 
                   OR MORE YEARS OF ACTIVE DUTY SERVICE DURING ANY 
                   5-YEAR PERIOD.

       (a) Entitlement.--Section 3012(a)(1) is amended--
       (1) in subparagraph (B), by striking ``or'' at the end;
       (2) in subparagraph (C), by adding ``or'' at the end; and
       (3) by inserting after subparagraph (C) the following new 
     subparagraph (D):
       ``(D) during any five-year period beginning on or after 
     September 11, 2001, and ending on or before June 30, 2008, 
     while in the Selected Reserve, serves on active duty in the 
     Armed Forces for one or more periods (whether continuous or 
     otherwise) aggregating not less than two years of service on 
     active duty during such period;''.
       (b) Collection of Contributions.--Section 3012(c), as 
     amended by section 201(b) of this Act, is further amended by 
     adding at the end the following new paragraph:
       ``(4)(A) In the case of an individual who becomes entitled 
     to basic educational assistance under this chapter by reason 
     of subsection (a)(1)(D), the Secretary of Defense shall 
     collect from the individual an amount equal to $1,200 not 
     later than one year after the completion by the individual of 
     the two years of service on active duty providing the basis 
     for such entitlement.
       ``(B) An individual described in subparagraph (A) shall not 
     be entitled to basic educational assistance as described in 
     that subparagraph unless an amount equal to $1,200 is first 
     collected from the individual as required under that 
     subparagraph.
       ``(C) The Secretary of Defense may collect amounts under 
     subparagraph (A) through reductions in basic pay in 
     accordance with paragraph (1) or through such other method as 
     the Secretary of Defense considers appropriate.''.
       (c) Duration of Assistance.--Section 3013(b) is amended by 
     striking ``is entitled to'' and all that follows and 
     inserting the following: ``is entitled to--
       ``(1) one month of educational assistance benefits under 
     this chapter--
       ``(A) in the case of an individual described in section 
     3012(a)(1)(A) of this title, for each month of continuous 
     active duty served by such individual after June 30, 1985, as 
     part of the obligated period of active duty on which such 
     entitlement is based;
       ``(B) in the case of an individual described in section 
     3012(a)(1)(B) of this title, for each month of continuous 
     active duty served by such individual after June 30, 1985; or
       ``(C) in the case of an individual described in section 
     3012(a)(1)(D) of this title, for each month of active duty 
     served by such individual after September 11, 2001, and 
     before July 1, 2008, as part of the aggregate period of 
     active duty on which such entitlement is based; and
       ``(2) one month of educational assistance benefits under 
     this chapter for each four months served by such individual 
     in the Selected Reserve after the applicable date specified 
     in paragraph (1) of this subsection (other than any month in 
     which the individual served on active duty).''.
       (d) Amount of Assistance.--Section 3015 is amended--
       (1) in subsections (a)(1)(D) and (b)(1)(D), by striking 
     ``subsection (h)'' and inserting ``subsection (i)'';
       (2) by redesignating subsection (h) as subsection (i); and
       (3) by inserting after subsection (g) the following new 
     subsection (h):
       ``(h) In the case of an individual entitled to an 
     educational assistance allowance under section 3012(a)(1)(D) 
     of this title, the amount of the basic educational assistance 
     allowance payable under this chapter is the amount determined 
     under subsection (b) of this section.''.
       (e) Outreach.--(1) The Secretary concerned shall take 
     actions to inform members of the Selected Reserve who are or 
     may become entitled to basic educational assistance benefits 
     under chapter 30 of title 38, United States Code, as a result 
     of section 3012(a)(1)(D) of such title (as amended by 
     subsection (a) of this section) of the minimum service 
     requirements for entitlement to such benefits under that 
     chapter and of the scope and nature of such benefits.
       (2) In this subsection:
       (A) The term ``Secretary concerned'' has the meaning given 
     such term in section 101(25) of title 38, United States Code.
       (B) The term ``Selected Reserve'' has the meaning given 
     such term in section 3002(4) of title 38, United States Code.

[[Page 22077]]



     SEC. 203. 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. 204. 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 SAT, LSAT, GRE, and GMAT exams) and national tests 
     providing an opportunity for course credit at institutions of 
     higher learning (such as the AP exam).''.
       (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.
       ``(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 34.--Section 3482 is amended by adding at the 
     end the following new subsection:
       ``(i)(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.''.
       (4) 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.''.

                        TITLE III--OTHER MATTERS

     SEC. 301. 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) of such title 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. 302. 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. 303. MODIFICATION OF DEFINITION OF MINORITY GROUP MEMBER 
                   FOR PURPOSES OF ADVISORY COMMITTEE ON MINORITY 
                   VETERANS.

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

  Mr. SPECTER. Mr. President, I have sought recognition to comment on a 
substitute amendment I propose to make to S. 2486, the Veterans' 
Benefits Improvements Act of 2004, as part of my request that the bill, 
as so amended, be approved by the Senate. The underlying bill, S. 2486, 
was reported by the Senate Committee on Veterans Affairs on July 20, 
2004, and is explained in detail in Senate Report 108-352. My comments 
at this time are limited to explaining how the proposed substitute 
amendment, which reflects a bipartisan agreement between Senate and 
House Veterans' Affairs Committees on issues related to veterans' non-
medical benefits and services, differ from the provisions of S. 2486, 
as reported.
  Almost all of the provisions set forth in S. 2486, as reported, are 
included in the substitute agreement that I present to the Senate 
today. Changes made, for the most part, simply reflect provisions that 
the House has approved which are acceptable to the Senate. There is, 
however, one notable excision of material from the Committee-reported 
bill: a provision crafted by Committee Member Zell Miller that would 
have increased educational assistance benefits for Reserves who are 
activated for extended periods. That provision is not included in the 
substitute amendment. Similar legislation, however, is in the offing 
via another legislative vehicle.
  After S. 2486 was reported by the Veterans' Committee, the President 
requested that the Armed Services Committees, in the course of their 
conferencing on the Fiscal Year 2005 Defense Authorization bill, 
approve enhancements to educational assistance benefits that are 
substantially the same as those which are included in S. 2486, as 
reported. I have been given every indication that the President's 
proposal will be included in the conference agreement on the Defense 
Authorization bill. Expecting this to be the case, Senator Miller's 
provision--a provision that was a centerpiece of the Committee-reported 
bill--has been laid aside. In its place, the substitute amendment 
includes a provision that would increase benefits to the neediest 
survivors of service members who are killed in combat or who 
subsequently die from service-related injuries or illnesses.
  Under current law, the surviving spouse of a service member who is 
killed in service is eligible for dependency and indemnity compensation 
(DIC) benefits. The new provision, which is drawn from a provision 
contained in a bill, S. 1132, that I introduced last year, would 
provide, for a two-year period, an additional $250 per month of DIC to 
a surviving spouse who has dependent children. VA estimates that 
approximately 27 percent of service members killed in Iraq and 
Afghanistan are survived by spouses who

[[Page 22078]]

have at least one dependent child. These survivors need an additional 
measure of help; the substitute amendment would provide it.
  The substitute amendment also makes substantial improvements, 
authored by the House, to VA educational assistance benefits provided 
to service members and veterans who pursue apprenticeship and on-the-
job training programs. VA programs for supporting those who pursue such 
opportunities have not been updated for over 50 years. These amendments 
are overdue. I applaud Chairman Chris Smith, the author of these 
provisions, for his efforts to expand employment and training 
opportunities afforded to veterans.
  There are many other fine additions to the reported bill contained in 
the substitute amendment. They include provisions to strengthen the 
oversight of VA fiduciaries, to enhance the Servicemembers Civil Relief 
Act and the Uniformed Services Employment and Reemployment Rights Act, 
and to improve on a myriad of other veterans' benefits and services. I 
encourage my colleagues to read the accompanying Explanatory Statement, 
which I ask be printed in the Record, for a better accounting of these 
worthy items.
  This legislation will affect positively the lives of many deserving 
service members, veterans, and survivors. It merits the support of my 
colleagues. I request that support.
  I yield the floor and I request the unanimous consent of the Senate 
that the ``Explanatory Statement'' that accompanies this statement be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

 Explanatory Statement on Senate Amendment to Senate Bill S. 2486, as 
                                Amended

       S. 2486, as amended, the ``Veterans Benefits Improvement 
     Act of 2004,'' reflects a Compromise Agreement reached by the 
     Senate and House Committees on Veterans' Affairs (the 
     Committees) on the following bills reported during the 108th 
     Congress: S. 2485, as amended; S. 2486, as amended; and S. 
     1132, as introduced (Senate Bills); H.R. 1716, as amended; 
     H.R. 3936; H.R. 4175, as amended; H.R. 4345; and H.R. 4658, 
     as amended (House Bills).
       The Senate and House Committees on Veterans' Affairs have 
     prepared the following explanation of S. 2486, as further 
     amended (Compromise Agreement). Differences between the 
     provisions contained in the Compromise Agreement and the 
     related provisions of S. 2485, as amended; S. 2486, as 
     amended; S. 1132, as introduced; H.R. 1716, as amended; H.R. 
     3936; H.R. 4175, as amended; H.R. 4345; and H.R. 4658, as 
     amended; are noted in this document, except for clerical 
     corrections, conforming changes made necessary by the 
     Compromise Agreement, and minor drafting, technical, and 
     clarifying changes.

                  TITLE I--VETERANS EARN AND LEARN ACT


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

     Current Law
       Section 3687 of title 38, United States Code, charges the 
     Montgomery GI Bill-Active Duty and Selected Reserve programs' 
     entitlement usage based on the actual ``dollars used'' of 
     monthly VA payment amounts. The entitlement charge under the 
     Vietnam-era and survivors' and dependents' educational 
     assistance programs is based on the time spent in certain 
     training programs.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 102 of H.R. 1716, as amended, would modify the 
     manner in which VA on-job training and apprenticeship benefit 
     entitlement is charged under the MGIB, Vietnam-era and 
     survivors' and dependents' programs. The modification would 
     charge entitlement usage for all programs based on ``dollars 
     used'' rather than time spent in training. This provision 
     would take effect one year after date of enactment.
     Compromise Agreement
       Section 102 of the Compromise Agreement follows the House 
     language with an effective date of months beginning after 
     September 30, 2005.


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

     Current Law
       Sections 3032 and 3233 of title 38, United States Code, and 
     Section 16131 of title 10, United States Code, state that 
     beneficiaries pursuing full-time apprenticeship or on-job 
     training programs will receive 75 percent of the monthly 
     educational assistance benefit for the first six months of 
     training, 55 percent for the second six months of training 
     and 35 percent for the subsequent months.
       Section 3687 of title 38, United States Code, states that 
     beneficiaries receiving full-time VA monthly Survivors' and 
     Dependents' Educational Assistance allowances payable to 
     individuals pursuing full-time apprenticeship or on-job 
     training programs will receive, as of October l, 2004, $585 
     for the first six months of training, $438 for the second six 
     months of training, $291 for the third six months, and $147 
     for the remainder of the program.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 104 of H.R. 1716, as amended, would increase by 10 
     percent the full-time VA monthly educational assistance 
     allowance payable to individuals pursuing a full-time 
     apprenticeship or on-job training program. For the first six 
     months of training, the percentage of the monthly benefit 
     would increase to 85 percent; for the second six months of 
     training, to 65 percent; and for subsequent months to 45 
     percent. These percentage increases would apply to the 
     Montgomery Gl Bill Active Duty and Selected Reserve programs, 
     and the Post-Vietnam Era Veterans' Educational Assistance 
     program. The Survivors' and Dependents' Educational 
     Assistance program would increase to $650 for the first six 
     months of training, $507 for the second six months of 
     training and $366 for the third six months. This provision 
     would be in effect from October 1, 2005 through September 30, 
     2010.
     Compromise Agreement
       Section 103 of the Compromise Agreement generally follows 
     the House language, but the 10 percent increase would take 
     effect October 1, 2005 through December 31, 2007.


             AUTHORITY FOR COMPETENCY-BASED APPRENTICESHIPS

     Current Law
       Section 3672 of title 38, United States Code, currently 
     allows payment of VA educational assistance benefits for 
     time-based apprenticeships.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 105 of H.R. 1716, as amended, would authorize VA to 
     pay educational assistance benefits to veterans participating 
     in approved programs of competency-based apprenticeships; 
     this new authority is in addition to time-based 
     apprenticeships. In the case of a competency-based 
     apprenticeship registered with the Secretary of Labor, this 
     provision requires VA to consider Department of Labor 
     standards in determining the appropriate length and structure 
     of the competency-based apprenticeship. This section would 
     also direct the Secretary of Veterans Affairs to use up to $3 
     million to develop the computer systems and procedures needed 
     to carry out section 105(a), 102, 103, and 104 of the bill.
     Compromise Agreement
       Section 104 of the Compromise Agreement follows the House 
     language. The Committees note that this provision 
     acknowledges competency-based apprenticeships but does not 
     require employers to use them in lieu of time-based 
     apprenticeships. In today's workplace, apprenticeship 
     programs are time-based or competency-based, or a combination 
     of the two. Lastly, the Committees note that apprenticeships 
     offered in industries that elect not to register them with 
     the Department of Labor, but are approved by a State 
     approving agency or VA, would continue to serve as legitimate 
     training opportunities for veterans.


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

     Current Law
       Chapter 35 of title 38, United States Code, entitles the 
     surviving spouse of a servicemember or veteran who died of a 
     service-connected injury, or the spouse of a veteran who is 
     rated by VA as totally and permanently disabled as the result 
     of a service connected disability, to educational assistance 
     provided by the Secretary. An eligible spouse is entitled to 
     use such educational assistance during a ten-year period 
     beginning on either: (1) the date the person became eligible 
     by reason of the servicemember's or veteran's service-
     connected death, or (2) the date on which the veteran was 
     rated by VA as totally and permanently disabled as the result 
     of a service-connected injury. A spouse may be eligible for 
     two ten-year eligibility periods as the result of two 
     distinct qualifying events. A spouse who is entitled to two 
     eligibility periods will not have a subsequent period of 
     eligibility reduced by any earlier period.
     Senate Bill
       Section 203 of S. 2486, as amended, would extend chapter 35 
     educational assistance eligibility from 10 to 20 years for a 
     surviving

[[Page 22079]]

     spouse of any person who died on active duty.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 105 of the Compromise Agreement follows the Senate 
     language.


     AVAILABILITY OF EDUCATIONAL BENEFITS FOR PAYMENT FOR NATIONAL 
   ADMISSIONS EXAMS AND NATIONAL EXAMS FOR CREDIT AT INSTITUTIONS OF 
                            HIGHER EDUCATION

     Current Law
       Sections 3452(b) and 3501(a)(5) of title 38, United States 
     Code, define the term ``program of education'' to generally 
     include a required course, or combination of courses, that 
     lead to an identified educational, professional, or 
     vocational objective. A ``program of education'' also 
     includes licensing or certification tests that are generally 
     required to enter into, maintain, or advance in a vocation or 
     profession. Section 3002(3) of title 38, United States Code, 
     expands the definition of ``program of education'' provided 
     in 3452(b) to include preparatory courses for a test required 
     or used for admission to an institution of higher education 
     or graduate school.
     Senate Bill
       Section 204 of S. 2486, as amended, would authorize VA to 
     provide educational assistance benefits to reimburse eligible 
     beneficiaries for the cost of certain national tests required 
     for admission to institutions of higher learning or graduate 
     schools and for national tests that can qualify veterans for 
     receipt of college credit.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 106 of the Compromise Agreement follows the Senate 
     language, but adds the College Level Examination Program 
     (CLEP) as an example of a test for which educational 
     assistance benefits may be used.


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

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 107 of H.R. 1716, as amended, would require certain 
     coordination of information among the Departments of Veterans 
     Affairs, Defense, and Labor with respect to on-job training 
     and apprenticeship programs. First, at the time of a 
     servicemember's separation from active duty, the Secretary of 
     Defense would be required to furnish the Secretary of 
     Veterans Affairs with information concerning each registered 
     apprenticeship pursued by the servicemember during his or her 
     active duty service. Second, it would require the Secretary 
     of Veterans Affairs, in coordination with the Secretary of 
     Labor, to encourage and assist States and private 
     organizations to accord credit to servicemembers for skills 
     in any related apprenticeship the servicemember may pursue in 
     civilian life.
     Compromise Agreement
       Section 107 of the Compromise Agreement follows the House 
     language.


    PILOT PROGRAM TO PROVIDE ON-JOB BENEFITS TO TRAIN DEPARTMENT OF 
                  VETERANS AFFAIRS CLAIMS ADJUDICATORS

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 106 of H.R. 1716, as amended, would require the 
     Secretary of Veterans Affairs to establish a pilot program to 
     furnish structured on-job training and on-job training 
     benefits to claims adjudicators training in its disability 
     compensation, dependency and indemnity compensation (DIC), 
     and pension programs. The Secretary would be required to 
     submit reports concerning continuation and expansion of the 
     pilot program.
     Compromise Agreement
       Section 108 of the Compromise Agreement generally follows 
     the House language, but authorizes the Secretary to establish 
     a pilot program to furnish formal, structured on-job 
     training/benefits to claims adjudicators at the Secretary's 
     discretion, and not by statutory mandate. The Committees note 
     that one of VA's four regional offices that adjudicate 
     educational assistance claims already offer such formal, 
     structured on job training.


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

     Current Law
       Sections 3011(b) and 3012(c) require that for a 
     servicemember to be eligible for Montgomery GI Bill (MGIB) 
     educational assistance benefits, the servicemember's active 
     duty pay must be reduced by $100 for each of the first 12 
     months that the individual is entitled to such pay. The 
     Secretary of Defense (or, in cases involving the activation 
     of U.S. Coast Guard personnel, the Secretary of Homeland 
     Security) is responsible for the collection of the $1,200 
     payment.
     Senate Bill
       Section 201 of S. 2486, as amended, would permit the 
     Secretary of Defense (or, in cases involving the activation 
     of U.S. Coast Guard personnel, the Secretary of Homeland 
     Security) to collect an activated Selected Reserve member's 
     $1,200 payment before the servicemember commences use of MGIB 
     educational assistance benefits.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 109 of the Compromise Agreement follows the Senate 
     language with the requirement that the servicemember furnish 
     a $1,200 payment not later than 1 year after completion of 
     the 2 years of active duty.

                      TITLE II--EMPLOYMENT MATTERS

             Subtitle A--Employment and Reemployment Rights


   TWO-YEAR PERIOD OF CONTINUATION OF EMPLOYER-SPONSORED HEALTH CARE 
                                COVERAGE

     Current Law
       Section 4317(a)(1)(A) of title 38, United States Code, 
     allows servicemembers covered under the Uniformed Services 
     Employment and Reemployment Rights Act of 1994 (USERRA) to 
     elect to continue employer-provided health coverage for up to 
     18 months while on active duty, provided the servicemember 
     pays up to 102 percent of the premium.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 201 of H.R. 4658, as amended, would increase from 
     18 months to 24 months the maximum period of employer-
     provided health coverage that an employee covered by USERRA 
     may elect to continue. The coverage would become effective on 
     the first day of the servicemember's absence from employment 
     following the date of enactment of this provision.
     Compromise Agreement
       Section 201 of the Compromise Agreement follows the House 
     language.


                REINSTATEMENT OF REPORTING REQUIREMENTS

     Current Law
       Section 4332 of title 38, United States Code, formerly 
     required that the Secretary of Labor, in consultation with 
     the Office of Special Counsel and the U.S. Attorney General, 
     provide annual reports to Congress on the disposition of 
     cases filed under USERRA. This requirement expired on 
     February 1, 1996.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 202 of H.R. 4658, as amended, would reinstate a 
     requirement that the Secretary of Labor, in consultation with 
     the Office of Special Counsel and the U.S. Attorney General, 
     provide annual reports to Congress on the disposition of 
     cases filed under USERRA, effective February 1, 2005.
     Compromise Agreement
       Section 202 of the Compromise Agreement follows the House 
     language.


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

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 211 of H.R. 4658, as amended, would require 
     employers to provide notice to employees of the rights, 
     benefits and obligations under USERRA. Section 211 would also 
     require the Department of Labor to make available to 
     employers, within 90 days after the date of enactment of this 
     provision, the text of the notice.
     Compromise Agreement
       Section 203 of the Compromise Agreement follows the House 
     language.


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

     Current Law
       Section 4322 of title 38, United States Code, provides that 
     an individual who believes his or her USERRA rights have been 
     violated by a Federal executive agency may file a complaint 
     with the Secretary of Labor to investigate such complaint. If 
     the Secretary of Labor is unable to resolve the complaint, 
     then in accordance with section 4324 of title 38, United 
     States Code, the individual may request that the Secretary of 
     Labor refer the complaint to the Office of Special Counsel 
     (OSC) for resolution before the Merit Systems Protection 
     Board.
     Senate Bill
       The Senate Bills contain no comparable provision.

[[Page 22080]]


     House Bill
       Section 212 of H.R. 4658, as amended, would require the 
     Secretary of Labor and the Office of Special Counsel (OSC) to 
     carry out a three-year demonstration project on enforcement 
     of USERRA rights for Federal executive branch employees. The 
     demonstration project would allow certain individuals who 
     allege a Federal executive agency has violated their USERRA 
     rights to file a complaint with OSC. For the OSC 
     demonstration project, USERRA cases involving Federal 
     agencies would be selected by the terminal digit of the 
     claimant's social security number or, if there is no social 
     security number, the claimant's case number. Cases with odd 
     terminal digits would be sent directly to OSC. The 
     Comptroller General of the United States would be required to 
     conduct periodic evaluations of the demonstration project and 
     submit to Congress a final report.
     Compromise Agreement
       Section 204 of the Compromise Agreement follows the House 
     language. While this demonstration project would be limited 
     to USERRA cases involving Federal executive agency employees, 
     the Committees intend to examine further USERRA education and 
     enforcement activities by the Departments of Labor, Justice 
     and Defense to determine whether all claimants are being 
     effectively and efficiently served under the current system.

                       Subtitle B--Other Matters


REPORT OF EMPLOYMENT PLACEMENT, RETENTION, AND ADVANCEMENT OF RECENTLY 
                        SEPARATED SERVICEMEMBERS

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 206 of H.R. 1716, as amended, would direct the 
     Secretary of Veterans Affairs to contract for a report within 
     180 days of enactment on employment placement, retention, and 
     advancement of recently-separated veterans.
     Compromise Agreement
       Section 211 of the Compromise Agreement follows the House 
     language. The requirement that the contract be entered into 
     within 180 days of enactment was deleted. Nonetheless, the 
     Committees expect the Secretary of Veterans Affairs to enter 
     into such a contract promptly.

                      TITLE III--BENEFITS MATTERS


ADDITIONAL DEPENDENCY AND INDEMNITY COMPENSATION FOR SURVIVING SPOUSES 
                        WITH DEPENDENT CHILDREN

     Current Law
       Section 1311(a) of title 38, United States Code, prescribes 
     the payment of dependency and indemnity compensation (DIC) to 
     the surviving spouse of a veteran or servicemember who dies 
     as a result of a service-connected disability. Section 
     1311(b) provides for an additional amount of DIC to be paid 
     for each of the surviving spouse's children who are under the 
     age of 18.
     Senate Bill
       Section 4 of S. 1132, as introduced, would provide for a 
     $250 monthly increase in DIC payments for a surviving spouse 
     with children below the age of 18. Such payments would be 
     authorized during the 5-year period following the service-
     connected death of the servicemember or veteran. Such 
     payments would cease when all children of a surviving spouse 
     reach age 18.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 301 of the Compromise Agreement follows the Senate 
     language, except that the $250 monthly increase in DIC would 
     only be authorized during the 2-year period following the 
     application for such benefit. The Committees intend that when 
     the Secretary notifies a DIC recipient of the additional 
     benefit provided by this section, such notice shall clearly 
     indicate that this is a transitional benefit which is limited 
     to two years.


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

     Current Law
       Under current law, a veteran who first applies for and 
     receives an award under the compensation program administered 
     by the Department of Justice pursuant to the Radiation 
     Exposure Compensation Act (RECA), Public Law 101-426, is 
     prohibited from receiving benefits from the Department of 
     Veterans Affairs. However, a veteran who applies for VA 
     benefits first may then apply for the RECA award, subject to 
     an offset by the Department of Justice of the amounts 
     received from VA.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 202 of H.R. 1716, as amended, would repeal the bar 
     that prevents a veteran or survivor from applying for VA 
     benefits if the individual had previously received 
     compensation from the Department of Justice's RECA program. 
     The bill would allow individuals to receive VA compensation 
     or dependency and indemnity compensation (DIC) benefits to 
     which they are entitled. However, VA would be required to 
     withhold compensation or DIC payments until the amount of the 
     RECA award has been deducted. This provision is effective for 
     compensation or DIC benefits paid after March 26, 2002. This 
     is the date regulations providing for a presumption of 
     service-connection for certain radiation-related disabilities 
     were established.
     Compromise Agreement
       Section 302 of the Compromise Agreement follows the House 
     language.


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

     Current Law
       Section 1503(a) of title 38, United States Code, requires 
     VA in determining eligibility for death pension benefits to 
     consider annual income, including all payments of any kind or 
     from any source.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 203 of H.R. 1716, as amended, would exclude life 
     insurance proceeds from consideration of income for death 
     pension benefits.
     Compromise Agreement
       Section 303 of the Compromise Agreement follows the House 
     language.


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

     Current Law
       Section 1151(a) of title 38, United States Code, authorizes 
     disability compensation or dependency and indemnity 
     compensation for veterans and their dependents who are 
     injured or die as a result of negligent VA medical treatment, 
     or in VA-sponsored rehabilitation or training. Under the 
     decision of the United States Court of Appeals for the 
     Federal Circuit in Kilpatrick v. Secretary of Veterans 
     Affairs, 327 F.3d 1375 (Fed. Cir. 2003), veterans disabled 
     under section 1151 are eligible for specially adapted housing 
     allowances under chapter 21 of title 3 8, United States Code. 
     Section 1151 (b) prohibits the receipt of VA compensation 
     benefits or DIC (for amounts attributable to loss of 
     consortium or society) where an individual, on or after 
     December 1, 1962, receives a judgment against, or settlement 
     or compromise payment from, the United States, until an 
     amount equal to any judgment against, or settlement or 
     compromise payment from the United States is recouped.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 205(a) of H.R. 1716, as amended, would allow 
     veterans and dependents who are injured as a result of 
     negligent VA medical treatment or rehabilitation or training 
     to qualify for vocational rehabilitation benefits, in 
     addition to specially adapted automobile and adaptive 
     equipment grants. Section 205(b) would provide that where a 
     judgment, settlement or compromise of a claim is offset 
     against benefits provided by the Secretary, such offset would 
     be applied only to the comparable benefit.
     Compromise Agreement
       Section 304 of the Compromise Agreement generally follows 
     the House language, but omits eligibility for vocational 
     rehabilitation benefits. Section 205(c) is amended to provide 
     that in the event that a judgment, settlement or compromise 
     specifically designates a portion of such award for housing 
     or automobile benefits such as those provided under Chapters 
     21 or 39, and the beneficiary later applies for benefits 
     under Chapter 21 or 39, benefits under those chapters would 
     be reduced by the amount of benefits specifically designated 
     in the judgment, settlement or compromise. Any amounts in 
     excess of those permitted under Chapter 21 or 39 would be 
     offset against benefits paid under Chapter 11.


                    effective date of death pension

     Current Law
       Section 5110(d) of title 38, United States Code, provides 
     that an award based on a death pension claim received more 
     than 45 days after the veteran's death can be effective no 
     earlier than the date of the claim. If the application is 
     received within 45 days of the veteran's death, then the 
     effective date of the death pension award is the first day of 
     the month in which the death occurred.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 204 of H.R. 1716, as amended, would repeal the 45-
     day rule for the effective date of death pension. Therefore, 
     a claim for

[[Page 22081]]

     death pension received within one year from the date of the 
     veteran's death would be effective the first day of the month 
     in which the death occurred.
     Compromise Agreement
       Section 305 of the Compromise Agreement follows the House 
     language.


  codification of administrative actions relating to presumptions of 
     service connection for veterans exposed to ionizing radiation

     Current Law
       Section 1112(c)(2) of title 38, United States Code, lists 
     16 diseases that VA presumes are related to exposure to 
     ionizing radiation. In addition to the 16 listed in statute, 
     VA regulations list an additional five diseases: bone cancer, 
     brain cancer, colon cancer, lung cancer, and ovarian cancer. 
     Servicemembers who participated in certain radiation-risk 
     activities, as defined in section 1112(c)(3)(B), benefit from 
     the presumption of service-connection to ionizing radiation.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 201 of H.R. 1716, as amended, would add bone 
     cancer, brain cancer, colon cancer, lung cancer, and ovarian 
     cancer to the statutory list of those diseases presumed to be 
     related to ionizing radiation exposure during participation 
     in certain radiation-risk activities. Section 201 would also 
     codify additional locations where radiation-risk activities 
     occurred for purposes of determining which veterans qualify 
     for the presumption of service-connection of certain diseases 
     related to ionizing radiation exposure.
     Compromise Agreement
       Section 306 of the Compromise Agreement follows the House 
     language.

                       TITLE IV--HOUSING MATTERS


  authority to provide specially adapted housing to certain disabled 
                                veterans

     Current Law
       Chapter 21 of title 38, United States Code, authorizes the 
     Secretary to provide grants to adapt or acquire suitable 
     housing for certain severely disabled veterans.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 302 of H.R. 1716, as amended, would extend 
     eligibility for specially adapted housing grants to veterans 
     with permanent and total service-connected disabilities due 
     to the loss, or loss of use, of both arms at or above both 
     elbows.
     Compromise Agreement
       Section 401 of the Compromise Agreement follows the House 
     language.


                    transitional housing amendments

     Current Law
       Section 2051 of title 38, United States Code, establishes 
     the general authority governing loan guarantees for 
     multifamily transitional housing. Section 2052 establishes 
     eligibility and other requirements for such loans.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 303 of H.R. 1716, as amended, would provide that a 
     multifamily transitional housing project that is funded by a 
     VA-guaranteed loan may accept uncompensated voluntary 
     services as defined in section 2011(d) of title 38, United 
     States Code, in connection with the construction, alteration, 
     or repair of such project. This section would also add 
     commercial activities, other than neighborhood retail 
     services or job training programs, to the purposes for which 
     multifamily transitional housing space may be used.
     Compromise Agreement
       Section 402 of the Compromise Agreement follows the House 
     language. The Committees intend that veterans be hired at 
     these new centers of commercial activity where practicable.


   increase in, and annual indexing of, maximum amount of home loan 
            guaranty for construction and purchase of homes

     Current Law
       Section 3703 of title 38, United States Code, establishes 
     that a loan of more than $144,000 made to an eligible veteran 
     under section 3710 for purchase or construction of a home is 
     automatically guaranteed by the United States in an amount 
     not to exceed the lesser of $60,000 or 25 percent of the 
     loan.
     Senate Bill
       Section 101 of S. 2486, as amended, would increase the 
     maximum VA home loan guaranty to 25 percent of the Freddie 
     Mac conforming loan amount for a single-family residence and 
     annually index the maximum amount of VA's home loan guaranty 
     for construction or purchase of a home to the Freddie Mac 
     limit.
     House Bill
       Section 301 of H.R. 1716, as amended, and H.R. 4345 contain 
     a similar provision.
     Compromise Agreement
       Section 403 of the Compromise Agreement follows the Senate 
     language.


   EXTENSION OF AUTHORITY FOR GUARANTEE OF ADJUSTABLE RATE MORTGAGES

     Current Law
       Section 3707 of title 38, United States Code, formerly 
     authorized a three-year test of a VA-guaranteed adjustable 
     rate mortgage program (ARM). The VA ARM program was in force 
     from fiscal year 1993 through fiscal year 1995.
     Senate Bill
       Section 102 of S. 2486, as amended, would reinstate the VA 
     ARM program and extend its authorization through fiscal year 
     2011.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 404 of the Compromise Agreement follows the Senate 
     language but would extend the VA ARM program authorization 
     through fiscal year 2008.


    EXTENSION AND IMPROVEMENT OF AUTHORITY FOR GUARANTEE OF HYBRID 
                       ADJUSTABLE RATE MORTGAGES

     Current Law
       Section 3707A of title 38, United States Code, authorizes 
     VA, during fiscal years 2004 and 2005, to guarantee hybrid 
     adjustable rate mortgage (hybrid ARM) loans. Annual interest 
     rate adjustments on VA-guaranteed hybrid ARM loans are 
     subject to a maximum increase or decrease of one percentage 
     point and are limited over the term of the mortgage to a 
     maximum increase of five percentage points above the initial 
     fixed rate of interest.
     Senate Bill
       Section 103 of S. 2486, as amended, would extend the 
     authority of VA to guarantee hybrid ARM loans through fiscal 
     year 2011. For hybrid ARM loans with fixed periods of 
     interest of less than 5 years, the initial and subsequent 
     annual interest rate adjustments would be limited to one 
     percentage point. For hybrid ARM loans with an initial rate 
     of interest fixed for 5 years or more, section 103 would give 
     VA the authority to set an appropriate interest rate cap for 
     the initial interest rate adjustment. Annual adjustments 
     thereafter would be subject to a one percentage point cap. 
     Finally, section 103 would require VA to prescribe the 
     maximum number of percentage points above the initial fixed 
     rate of interest that would limit, over the term of a hybrid 
     ARM mortgage, interest rate adjustments.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 405 of the Compromise Agreement follows the Senate 
     language but would extend the VA hybrid ARM program through 
     fiscal year 2008.


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

     Current Law
       Section 3729(a) of title 38, United States Code, requires 
     VA to collect a fee from each person obtaining a housing loan 
     guaranteed by VA. Section 3729(c) prohibits the collection of 
     loan fees from veterans who are receiving VA disability 
     compensation. Disability compensation may only be paid upon 
     an active duty servicemember's discharge from service.
     Senate Bill
       Section 104 of S. 2486, as amended, would allow a 
     servicemember who is rated eligible to receive disability 
     compensation as a result of a pre-discharge medical 
     examination to qualify for a waiver of the VA home loan 
     funding fee.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 406 of the Compromise Agreement follows the Senate 
     language.


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

     Current Law
       Section 3761 of title 38, United States Code, establishes 
     the general authority governing a pilot program for housing 
     loans to Native Americans residing on tribal lands. The pilot 
     program is authorized through December 31, 2005.
     House Bill

 H.R. 5153 would extend the Native American Home Loan Program through 
                           December 31, 2010.

       Senate Bill
       The Senate Bills contain no comparable provision.
     Compromise Agreement
       Section 407 of the Compromise Agreement extends the pilot 
     program until December 31, 2008.

                TITLE V--MATTERS RELATING TO FIDUCIARIES


                        DEFINITION OF FIDUCIARY

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.

[[Page 22082]]


     House Bill
       Section 301 of H.R. 4658, as amended, would define a 
     fiduciary for the purposes of chapters 55 and 61 of title 38, 
     United States Code, as (1) the guardian, curator, 
     conservator, committee or person legally vested with the 
     responsibility or care of a claimant (or the estate) or of a 
     beneficiary (or beneficiary's estate); or (2) any other 
     person appointed in a representative capacity to receive 
     money paid from VA.
     Compromise Agreement
       Section 501 of the Compromise Agreement follows the House 
     language.


       INQUIRY, INVESTIGATIONS, AND QUALIFICATION OF FIDUCIARIES

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 302 of H.R. 4658, as amended, would require VA to 
     certify, following an inquiry or investigation, the fitness 
     of a fiduciary. Such inquiry or investigation would be 
     conducted through, to the extent practicable, a face-to-face 
     interview, review of a credit report issued within one year 
     of the fiduciary's proposed appointment, and the furnishing 
     of any bond that may be required by the Secretary. 
     Additionally, the Secretary would be required to request 
     information on whether that person has been convicted of any 
     offense under Federal or State law resulting in imprisonment 
     for more than one year. If the proposed fiduciary has been 
     convicted of such an offense, the Secretary may certify the 
     person as a fiduciary only if the Secretary makes a specific 
     finding of rehabilitation and finds that the proposed 
     fiduciary is an appropriate one to act as the fiduciary for 
     the beneficiary.
       In cases of a parent or step-parent of a minor beneficiary 
     (natural or adopted), spouse or parent of an incompetent 
     beneficiary, a person who has been appointed by a court of 
     competent jurisdiction, or a person appointed to manage an 
     estate where the annual amount of veterans benefits to be 
     managed does not exceed $3,600 (adjusted for annual cost-of-
     living increases), the Secretary may certify the potential 
     fiduciary on an expedited basis.
       If needed to protect the assets of the beneficiary when a 
     determination of incompetence is being made or appealed, or a 
     fiduciary is appealing a determination of misuse of veteran's 
     benefits, the Secretary would have the authority to appoint a 
     temporary fiduciary, for a period not to exceed 120 days. If 
     a final decision has not been made within 120 days of the 
     appointment of the temporary fiduciary, the Secretary would 
     not be able to continue the temporary appointment without a 
     court order for the appointment of a guardian, conservator, 
     or similar legal fiduciary.
     Compromise Agreement
       Section 502 of the Compromise Agreement follows the House 
     language with modifications. Language requiring a specific 
     finding of rehabilitation before a person with a prior felony 
     conviction may be appointed to serve as a fiduciary is 
     omitted. The Committees intend that the Secretary have 
     discretion in determining when such a person would be an 
     appropriate person to serve as a fiduciary. The Committees 
     expect the Secretary to consider such factors as the length 
     of time since the conviction, the nature of the offense, the 
     relationship of the proposed fiduciary to the beneficiary, 
     and other factors which would demonstrate the appropriateness 
     of the appointment.


                   misuse of benefits by fiduciaries

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 303 of H.R. 4658, as amended, would, if the 
     Secretary or a court of competent jurisdiction determines the 
     fiduciary misused some or all of the veterans' benefits, 
     prohibit a fiduciary from collecting a fee from a beneficiary 
     for any month benefits were misused. Additionally, any fee 
     collected would be considered to be misused.
       Any fiduciary, except a Federal, State or local government 
     agency, would be liable for the amount misused, and that 
     amount would be treated as an erroneous payment to the 18 
     fiduciary for purposes of laws pertaining to the recovery of 
     overpayments. The misappropriated amount would be recovered 
     in the same manner as any other debt due the United States, 
     and the Secretary would repay to the beneficiary or the 
     beneficiary's successor fiduciary, an amount equal to the 
     recovered amount.
       In the event the misused benefits are due to the 
     Secretary's negligent failure to investigate or monitor the 
     fiduciary, the Secretary would be liable to reissue all the 
     benefits. Examples of failure to monitor a fiduciary 
     adequately would include the Secretary's failing to review, 
     in a timely manner, a fiduciary's accounting; failing to act 
     in a timely manner when notified of allegations of misuse; 
     and any other case when actual negligence is shown. In any 
     case, a fiduciary who is (1) not an individual (i.e., an 
     agency) or (2) is an individual who, for any month during a 
     period when misuse occurs, serves ten or more individuals who 
     are beneficiaries under title 38, United States Code, the 
     Secretary would also reissue benefits. When the Secretary 
     reissues a benefit payment, the Secretary is directed to make 
     a good-faith effort to recoup the funds from the fiduciary to 
     which the original payment was made.
     Compromise Agreement
       Section 503 of the Compromise Agreement follows the House 
     language with modifications. The Committees have omitted 
     language authorizing the Secretary to make a finding of 
     misuse and treat the portions of benefits misused as 
     erroneous payments to the fiduciary. Also omitted is language 
     authorizing the Secretary to impose liability upon the 
     fiduciary and recover misused funds in the same manner as any 
     other debt owed to the United States. In addition, the 
     Committees have omitted the provision that would have made a 
     determination by the Secretary that a fiduciary has misused 
     benefits a decision of the Secretary for purposes of section 
     511(a) of title 38, United States Code. The Committees 
     recognize that it is the duty of the Federal government to 
     recover misused funds and expect that VA and other government 
     agencies will make every effort to recover misused funds. 
     However, at this time, the Committees need to assess further 
     the appropriateness of requiring a fiduciary accused of 
     misuse by the Secretary to appeal such a finding in the 
     appeals venue established for adjudicating veterans' 
     entitlement claims.
       The Committees have also amended the provision requiring 
     the Secretary to reissue benefits when the Secretary has 
     negligently failed to monitor or investigate a fiduciary. In 
     particular, the Committees have specified that a timely 
     review of a scheduled accounting or investigation of misuse 
     is one that occurs within 60 days of the scheduled accounting 
     or notification of alleged misuse.


       additional protections for beneficiaries with fiduciaries

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 304 of H.R. 4658, as amended, would require the 
     Secretary to conduct periodic onsite reviews of any person or 
     agency located in the United States that serves as a 
     fiduciary to more than 20 beneficiaries and who administers a 
     total annual amount of benefits administered of $50,000 or 
     more (to be adjusted annually to reflect cost-of-living 
     adjustments). Additionally, the Secretary would be authorized 
     to require a fiduciary to file a report or accounting of 
     disbursement of benefits in accordance with regulations 
     prescribed by the Secretary. In the event a fiduciary fails 
     to file the requested report, the Secretary would be 
     authorized to require a fiduciary to appear in person at a VA 
     regional office to receive payment.
       In the event the Secretary determines a fiduciary converts 
     a payment for some use other than for use on the 
     beneficiary's behalf, the Secretary would be authorized to 
     assess, in addition to any other penalty that may be 
     prescribed by law, a civil monetary penalty of not more than 
     $5,000 per conversion. Such person would also be subject to 
     an assessment by the Secretary of not more than twice the 
     amount of any payments converted.
       Additionally, any Federal court, when sentencing a 
     defendant convicted of an offense arising from the misuse of 
     benefits, could have ordered, in addition to or in lieu of 
     any other penalty authorized by law, that the defendant make 
     restitution to the Department and the court would have been 
     required to state on the record the reasons for not ordering 
     restitution, or only ordering partial restitution. Any 
     amounts received or recovered would be available to defray 
     the expenses incurred by the VA's Office of Inspector General 
     for the inquiry or investigation of fiduciaries.
     Compromise Agreement
       Section 504 of the Compromise Agreement follows the House 
     language with modifications. The title of new section 5509, 
     of title 38, United States Code, has been changed to reflect 
     more accurately the requirements of that section. The 
     provision for imposition of civil monetary penalties has been 
     omitted. The Compromise Agreement omits provisions allowing 
     amounts received in excess of benefit restitution to be made 
     available to the Office of the Inspector General.


                             annual report

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 305 of H.R. 4658, as amended, would require the 
     Secretary to include in the ``Annual Benefits Report of the 
     Veterans Benefits Administration'' or the ``Secretary's 
     Annual Performance and Accountability Report'' information 
     concerning fiduciaries

[[Page 22083]]

     who have been appointed to receive benefits. The required 
     report would include: (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 title 38, United States Code); (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, step-parent, legal custodian, court-appointed 
     fiduciary, institutional fiduciary, custodian-in-fact and 
     supervised direct payee; (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 civil or criminal 
     penalties imposed; and (8) such other information as the 
     Secretary considers appropriate.
     Compromise Agreement
       Section 505 of the Compromise Agreement follows the House 
     language with modifications. Additional reporting 
     requirements concerning cases referred to the Office of the 
     Inspector General and the amounts of money recovered by the 
     government have been added. Language referring to civil or 
     criminal penalties has been omitted.

                   TITLE VI--MEMORIAL AFFAIRS MATTERS


  designation of prisoner of war missing in action national memorial, 
           riverside national cemetery, riverside, california

     Current Law
       There is no applicable current law.
     Senate Bill
       Section 122 of S. 2485 would designate the Prisoner of War/
     Missing in Action National Memorial at the Riverside National 
     Cemetery in Riverside, California. Federal funds would be 
     permitted, but not required, at the discretion of the 
     Secretary for maintenance of the memorial, should private 
     funding sources prove to be inadequate.
     House Bill
       Section 402 of H.R. 1716, as amended, contains a similar 
     provision.
     Compromise Agreement
       Section 601 of the Compromise Agreement generally follows 
     the House language. However, the memorial is designated: 
     ``Prisoner of War/Missing in Action National Memorial.''


       lease of certain national cemetery administration property

     Current Law
       There is no applicable provision in current law.
     Senate Bill
       Section 107 of S. 2485, as amended, would authorize the 
     Secretary to lease any undeveloped land and unused or 
     underutilized buildings belonging to the United States and 
     administered by the National Cemetery Administration (NCA). 
     The term of any such lease would not be permitted to exceed 
     ten years. Proceeds from the lease of land or buildings and 
     proceeds from licenses sold in return for the agricultural 
     use of NCA lands would be deposited in a National Cemetery 
     Administration Facilities Operation Fund along with any 
     appropriation, or other authorized payment, designated for 
     that fund.
       Fund proceeds would be available to cover costs incurred by 
     NCA in the operation and maintenance of national cemeteries.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 602 of the Compromise Agreement follows the Senate 
     language.


           exchanges of real property for national cemeteries

     Current Law
       Section 2406 of title 38, United States Code, authorizes 
     the Secretary to acquire additional lands for national 
     cemeteries by purchase, gift, condemnation, or transfer from 
     other Federal agencies.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 603 of the Compromise Agreement would authorize the 
     Secretary to acquire additional lands for national cemeteries 
     by exchanging existing national cemetery land.

       TITLE VII--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT


clarification of meaning of ``judgment'' as used in the servicemembers 
                        civil relief act (scra)

     Current Law
       Section 101 of the SCRA provides definitions for purposes 
     of the Act. The section does not define the term 
     ``judgment.''
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 101 of H.R. 4658, as amended, would clarify that 
     ``[t]he term `judgment' means any judgment, decree, order, or 
     ruling, final or temporary.''
     Compromise Agreement
       Section 701 of the Compromise Agreement follows the House 
     language.


        requirements relating to waiver of rights under the scra

     Current Law
       Section 107 of the SCRA provides that servicemembers may 
     waive any of the rights and protections under the Act if 
     certain requirements are met, including a requirement in 
     section 107(b) that waivers be in writing for specified 
     actions.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 102 of H.R. 4658, as amended, would provide that 
     those actions requiring waivers in writing pursuant to 
     section 107(b) of the SCRA must also be executed in a 
     separate instrument. Additionally, section 102 would provide 
     a new requirement that any waiver, in writing, of a right or 
     protection under section 107 of the Act that applies to a 
     contract, lease or similar legal instrument must be in at 
     least 12-point type.
     Compromise Agreement
       Section 702 of the Compromise Agreement follows the House 
     language.


right of servicemembers plaintiffs to request stay of civil proceedings

     Current Law
       Section 202 of the SCRA provides for a stay of any civil 
     action or proceeding when a servicemember who is a defendant 
     has notice of the action or proceeding.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 103 of H.R. 4658, as amended, would include 
     plaintiffs as well as defendants under section 202 of the 
     SCRA.
     Compromise Agreement
       Section 703 of the Compromise Agreement follows the House 
     language.


                         termination of leases

     Current Law
       Section 305 of the SCRA provides that servicemembers may, 
     under certain circumstances, terminate residential or motor 
     vehicle leases and specifies the manner of termination.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 104 of H.R. 4658, as amended, would clarify that 
     if, under section 305 of the SCRA the servicemember 
     terminates a lease entered into jointly with a dependent, the 
     obligations of both the servicemember and the dependent are 
     terminated. Section 104 would also modify section 305 of the 
     SCRA to allow motor vehicle lease terminations for any 
     permanent change of station move from a state outside of the 
     continental United States to any other location outside that 
     state, and the term ``continental United States'' would be 
     defined as the ``48 contiguous states and the District of 
     Columbia.'' Further, section 104 would broaden the definition 
     of the term ``military orders'' to mean ``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.'' 
     Finally, section 104 would amend section 305 of the SCRA to 
     include individual as well as unit deployments for a period 
     of not less than 90 days among the circumstances under which 
     a servicemember could terminate a lease.
     Compromise Agreement
       Section 704 of the Compromise Agreement follows the House 
     language.

                       TITLE VIII--OTHER MATTERS


  principal office of the united states court of appeals for veterans 
                                 claims

     Current Law
       Section 7255 of title 38, United States Code, requires the 
     principal office of the U.S. Court of Appeals for Veterans 
     Claims be located in the District of Columbia.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 1 of H.R. 3936 would authorize the principal office 
     of the U.S. Court of Appeals for Veterans Claims to be 
     located at any location in the Washington, D.C., metropolitan 
     area. Section 2 would make findings and express the sense of 
     Congress regarding a new veterans' courthouse and justice 
     center.
     Compromise Agreement
       Section 801 of the Compromise Agreement follows the House 
     language, but omits section 2 of the bill.


extension of biennial report of advisory committee on former prisoners 
                                 of war

     Current Law
       Section 541 of title 38, United States Code, establishes an 
     Advisory Committee on

[[Page 22084]]

     Former Prisoners of War. The Advisory Committee is required 
     to submit to the Secretary, no later than July 1st of each 
     odd numbered year through 2003, a report on the programs and 
     activities of the Department as they pertain to veterans who 
     are former prisoners of war.
     Senate Bill
       Section 302 of S. 2486, as amended, would extend the 
     reporting requirement through 2009.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 803 of the Compromise Agreement follows the Senate 
     language.


    availability of administrative and judicial redress for certain 
     veterans denied opportunity to compete for federal employment

     Current Law
       Section 3304(f)(1) of title 5, United States Code, grants 
     ``preference eligible'' veterans (generally, veterans who 
     served during a wartime period; veterans who served during a 
     period for which a campaign badge or expeditionary medal was 
     awarded; or veterans with service-connected disabilities) and 
     veterans who separated from the armed forces under honorable 
     conditions after three years or more of active service the 
     opportunity to compete for vacant positions in the Federal 
     government for which an agency is accepting applications from 
     individuals outside its own workforce under merit promotion 
     procedures.
       Section 3330a of title 5, United States Code, allows 
     preference eligible veterans who allege their veterans' 
     preference rights have been violated to seek administrative 
     redress by filing a complaint with the Secretary of Labor. 
     Section 3330b of title 5, United States Code, provides 
     preference eligible veterans with judicial redress for claims 
     arising from allegations of violations of veterans' 
     preference laws.
     Senate Bill
       Section 204 of S. 2486, as amended, would provide a veteran 
     who has been separated from the armed forces under honorable 
     conditions after three years or more of active service with 
     administrative and judicial redress for alleged violations of 
     his or her rights under section 3304(f)(1) of title 5, United 
     States Code.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 804 of the Compromise Agreement follows the Senate 
     language.


report on servicemembers'and veterans' awareness of benefits available 
      under laws administered by the secretary of veterans affairs

     Current Law
       Section 7722 of title 38, United States Code, requires the 
     Secretary of Veterans Affairs to distribute full information 
     to eligible servicemembers, veterans and dependents regarding 
     all benefits and services to which they may be entitled under 
     laws administered by the Department.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       The House Bills contain no comparable provision.
     Compromise Agreement
       Section 805 of the Compromise Agreement would direct the 
     Secretary of Veterans Affairs to submit a report to Congress 
     detailing VA's efforts to make veterans and servicemembers 
     aware of VA benefits and services to which they are entitled. 
     The report would include: 1) a description of the outreach 
     activities conducted by VA at each of its three 
     Administrations and by other internal VA entities; 2) the 
     results of a national survey to ascertain servicemembers' and 
     veterans' level of awareness of VA benefits and services; and 
     3) recommendations the Secretary may have to improve VA's 
     outreach activities. The report would be due 1 year after the 
     enactment of the Compromise Agreement.


                   legislative provisions not adopted

        improved veterans' benefits for former prisoners of war

     Current Law
       Section 1112(b) of title 38, United States Code, specifies 
     16 disabilities that VA presumes are related to the prisoner 
     of war (POW) experience for the purposes of veterans' and 
     survivors' benefits.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 4 of H.R. 4175 would add osteoporosis to the list 
     of diseases presumed to be the result of the POW experience.


    findings related to on-job training and apprenticeship programs

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.
       House Bill
       Section 101 of H.R. 1716, as amended, would make 
     Congressional findings with respect to broad purposes for 
     VA's OJT and apprenticeship programs in both the private and 
     public sectors of our economy. These include: helping 
     employers hire and retain skilled workers; establishing a 
     link between the training afforded to servicemembers while 
     serving in the Armed Forces and the training available in 
     civilian settings for purposes of occupational licensing and 
     credentialing; and developing a more highly educated and 
     productive workforce.


   incentive payment for early completion of apprenticeship training

     Current Law
       Sections 3032, 3233, and 3687 of title 38, United States 
     Code, and Section 16131 of title 10, United States Code, do 
     not currently contain any incentive to finish on job training 
     or apprenticeships earlier than the established completion 
     date.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 103 of H.R. 1716, as amended, would establish an 
     incentive payment for program participants who finish their 
     apprenticeship training early. As an incentive for trainees 
     to complete their apprenticeship or attain journeyworker 
     status early, this provision would require VA to pay the 
     trainee a lump-sum amount for the months of VA entitlement 
     remaining that would have been needed to complete the 
     apprenticeship. This provision would be applicable for months 
     beginning on or after October 1, 2005, and ending on October 
     1, 2010.


    eligibility of certain persons for burial in arlington national 
                                cemetery

     Current Law
       Eligibility for burial at Arlington National Cemetery is 
     governed by Federal regulations at section 553.15 of title 
     32, Code of Federal Regulations. The following categories of 
     persons are eligible for in-ground burial: active duty 
     members of the Armed Forces, except those members serving on 
     active duty for training; retired members of the Armed Forces 
     who have served on active duty, are on a retired list and are 
     entitled to receive retirement pay; former members of the 
     Armed Forces discharged for disability before October 1, 
     1949, who served on active duty and would have been eligible 
     for retirement under 10 U.S.C. 1202 had the statute been in 
     effect on the date of separation; honorably discharged 
     members of the Armed Forces awarded the Medal of Honor, 
     Distinguished Service Cross, Air Force Cross or Navy Cross, 
     Distinguished Service Medal, Silver Star, or Purple Heart; 
     former prisoners of war who served honorably and who died on 
     or after November 30, 1993; provided they were honorably 
     discharged from the Armed Forces, elected Federal officials 
     (the President, Vice President, and Members of Congress), 
     Federal cabinet secretaries and deputies, agency directors 
     and certain other high Federal officials (level I and II 
     executives), Supreme Court Justices, and chiefs of certain 
     diplomatic missions; the spouse, widow or widower, minor 
     child and, at the discretion of the Secretary of the Army, 
     certain unmarried adult children, and certain surviving 
     spouses of persons eligible for in-ground burial.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 401 of H.R. 1716, as amended, would make eligible 
     for in-ground burial at Arlington National Cemetery (1) a 
     member or former member of a reserve component of the Armed 
     Forces who at the time of death was under 60 years of age and 
     who, but for age, would have been eligible for military 
     retired pay under title 10, United States Code; and (2) a 
     member of a reserve component of the Armed Forces who dies in 
     the line of duty while on active duty for training or 
     inactive duty training. Eligibility in both instances would 
     also extend to the servicemember's dependents.


          technical amendments to education program provisions

     Current Law
       Section 3452(e) of title 38, United States Code, as amended 
     by section 301 of the Veterans Benefits Act of 2003 (Public 
     Law 108-183; 117 Stat. 2658), authorizes educational 
     assistance benefits for certain self-employment and on-job 
     training programs (franchises) for less than six months under 
     the Montgomery GI Bill (MGIB) when the beneficiary receives a 
     training wage.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 403 of H.R. 4658, as amended, would make a 
     technical correction to waive the training-wage requirement 
     for programs of less than six months beginning October 1, 
     2005, and ending on September 30, 2010. The

[[Page 22085]]

     Department of Veterans Affairs would be required to review 
     and approve all such programs before any MGIB educational 
     assistance benefits could be dispersed.


        prevention of double taxation of certain servicemembers

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 105 of H.R. 4658, as amended, would prohibit a tax 
     jurisdiction from imposing a use, excise or similar tax on 
     the personal property of a servicemember who is not a 
     resident, if the tax jurisdiction's laws do not provide a 
     credit against such taxes previously paid on the same 
     personal property in another tax jurisdiction.


 findings and sense of congress regarding new veterans courthouse and 
                             justice center

     Current Law
       There is no applicable current law.
     Senate Bill
       The Senate Bills contain no comparable provision.
     House Bill
       Section 2 of H.R. 3936 would make findings and express the 
     sense of Congress that all other Article I courts of the 
     United States are located in a dedicated courthouse; that the 
     U.S. Court of Appeals for Veterans Claims, since its creation 
     in 1988, has been located in a commercial office building; 
     and that a dedicated Veterans Courthouse and Justice Center 
     should be provided for the Court and the veterans it serves, 
     and should be located, if feasible, at a site owned by the 
     United States that is part of or proximate to the Pentagon 
     Reservation. Section 2 would also require that not later than 
     90 days after the date of enactment of this provision, the 
     Secretary of Defense, the Secretary of Veterans Affairs, and 
     the Administrator of General Services submit to the House and 
     Senate Committees on Veterans' Affairs and Armed Services a 
     joint report on the feasibility of locating a new Veterans 
     Courthouse and Justice Center at an appropriate Pentagon 
     Reservation site.


educational assistance under the montgomery gi bill for members of the 
selected reserve who aggregate two or more years of active duty service 
                      during any five-year period

     Current Law
       Section 3012 of title 38, United States Code, authorizes 
     the Department of Veterans Affairs to provide Chapter 30 
     educational assistance benefits to an individual who, after 
     June 30, 1985, first enters on active duty and has his or her 
     pay reduced by $100 per month for the first 12 months of 
     active duty and serves at least two continuous years on 
     active duty.
     Senate Bill
       Section 202 of S. 2486, as amended, would grant entitlement 
     to Chapter 30 educational assistance benefits to an 
     individual in the Selected Reserve who, during any five-year 
     period beginning on or after September 11, 2001, and ending 
     on June 30, 2008, serves an aggregate of two years of active 
     duty service. The activated Selected Reserve member would be 
     required to make a $1,200 contribution within one year of 
     completing two years of aggregate active duty service.
     House Bill
       The House Bills contain no comparable provision.


  modification of definition of minority group member for purposes of 
                advisory committee on minority veterans

     Current Law
       Section 544 of title 38, United States Code, establishes an 
     Advisory Committee on Minority Veterans. For purposes of that 
     section of law the term ``minority group members'' includes 
     veterans who are: Asian American; Black; Hispanic; Native 
     American (including American Indian, Alaskan Native, and 
     Native Hawaiian); or Pacific-Islander American.
     Senate Bill
       Section 303 of S. 2486, as amended, would amend the 
     definition of ``minority group member'' to conform to the new 
     Race and Ethnic Standards used in Federal statistical 
     reporting and in the 2000 United States Census. Specifically, 
     section 303 would redefine the categories of minority group 
     members making the following changes: substituting ``Asian'' 
     for ``Asian American;'' ``Black or African American'' for 
     ``Black;'' ``Hispanic, Latino, or Spanish Origin'' for 
     ``Hispanic;'' and ``American Indian or Alaska Native'' and 
     ``Native Hawaiian or other Pacific Islander'' for ``Native 
     American (including American Indian, Alaskan Native, and 
     Native Hawaiian).''
     House Bill
       The House Bills contain no comparable provision.


    increase in rates of disability compensation and dependency and 
                         indemnity compensation

     Current Law
       Current law does not require an annual cost-of-living 
     adjustment to veterans' and survivors' disability 
     compensation.
     Senate Bill
       S. 2483 contains a similar provision.
     House Bill
       Section 2 of H.R. 4175 would provide, effective December 1, 
     2004, a cost-of-living adjustment to the rates of disability 
     compensation for veterans with service-connected disabilities 
     and the rates of dependency and indemnity compensation for 
     survivors of certain service-connected disabled veterans. The 
     percentage increase would be equal to the percentage increase 
     for benefits provided under the Social Security Act.
     Compromise Agreement
       The Committees expect that a veterans' cost-of-living 
     adjustment effective December 1, 2004, will be considered in 
     another bill.

  Mr. GRAHAM of Florida. Mr. President, as ranking member of the 
Committee on Veterans' Affairs, I urge my colleagues to continue to 
support our veterans and their families by passing the Veterans 
Benefits Improvement Act of 2004.
  This bill, which I shall call the Compromise Agreement, is the final 
version of a veterans omnibus bill. The Compromise Agreement will 
improve and expand a host of veterans benefits, including: survivors 
benefits for spouses with dependent children; housing benefits; and 
educational benefits for Guard and Reserve members, veterans, and 
spouses of veterans killed on active duty.
  It is very appropriate that at a time when our airmen, soldiers, 
sailors and marines are in harm's way, that we remember the sacrifices 
that those before them have made on behalf of this great Nation by 
improving and expanding veterans benefits for our Nation's bravest and 
their families.
  I will briefly highlight some of the more important provisions, and 
then ask that my colleagues direct their attention to the Joint 
Explanatory Statement for further explanation of the proposed 
legislation.
  Dependency and indemnity compensation is a monthly benefit paid to 
eligible survivors of servicemembers who died on active duty, and of 
certain veterans. A larger monthly benefit is paid to surviving spouses 
with children under the age of 18. Under this legislation, dependency 
and indemnity compensation for survivors, with dependent children, of 
spouses killed on active duty would be increased by $250 a month, for 2 
years, beginning on the date when entitlement to benefits begins. A VA 
contracted study found that spouses with children had a higher level of 
unmet need than spouses without children. This provision is included to 
further aid the transition of surviving spouses with dependent 
children. We must make every effort to make certain that the families 
of servicemembers who paid the ultimate sacrifice have their needs met.
  Owning a home of one's own is the American Dream. This legislation 
would make that dream a reality for more of our veterans by increasing 
the maximum amount of the VA home loan guaranty. The current VA loan 
limit of $240,000 restricts beneficiaries from using the guaranty 
because it is insufficient to cover median housing prices in many parts 
of the Nation. Section 403 of the Compromise Agreement would increase 
the maximum VA loan amount to $333,700. It would also index the loan 
limit to 25 percent of the conforming loan limit for a single-family 
residence as set by Freddie Mac. This would allow the loan limit to 
continue to rise with the cost of housing inflation automatically. This 
change, coupled with the reinstatement of the VA adjustable rate 
mortgage loan program and improvement of the hybrid adjustable rate 
mortgage loan program will allow many more veterans to be able to 
purchase a home.
  The second half of the American Dream is a college education. 
Educational assistance is provided to the surviving spouse of a 
servicemember or veteran who died of a service-connected injury, or the 
spouse of a veteran who is rated by VA to be totally and permanently 
disabled. The spouse has 10 years to use the entitlement. However, many 
surviving spouses, during this difficult transitional period, are busy 
raising children and working making it impossible to use the education 
benefit. This legislation would give an additional 10 years to the 
surviving spouse of a servicemember who

[[Page 22086]]

died of a service-connected disability to use the benefit.
  Under current law, a member of the Selected Reserve or National Guard 
must contribute a non-refundable $1,200 in order to participate in the 
Montgomery GI Bill education program. However, a member of the Selected 
Reserve must spend 1 year on active duty before being eligible for the 
program. Section 109 of the committee bill would create flexibility and 
allow the Montgomery GI Bill participation fee to be collected not 
later than 1 year after the completion of 2 years of active duty, 
ensuring that the Reserve or Guard has become eligible by satisfying 
the service requirement.
  With the costs of attending college rising, it is important that we 
do as much for our veterans as possible so that they may reach their 
academic objectives. This legislation would allow VA to reimburse 
eligible beneficiaries for the cost of certain national admission 
tests, such as the Law School Admission Test, Graduate Record Exam, 
Graduate Management Admission Test, and Scholastic Aptitude Test, and 
for course credit at institutions of higher learning, such as the 
Advanced Placement Exam and College-Level Examination Program.
  In keeping with this committee's continuing effort to aid veterans in 
attaining appropriate education and employment opportunities, this 
legislation improves the full-time apprenticeship and on-job training 
programs under the MGIB. Section 103 of the Compromise Agreement, for 
more than a 2-year period, would increase the full-time VA monthly 
educational assistance allowance payable to individuals participating 
in these training programs. For the first 6 months of training, the 
monthly benefit would increase to 85 percent from 75 percent; for the 
second 6 months, 65 percent from 55 percent; and the remainder of 
months, 45 percent from 35 percent. Additionally, Section 104 of the 
Compromise Agreement authorizes VA to pay educational benefits to 
veterans participating in competency-based apprenticeships, in addition 
to time-based apprenticeships, bringing the VA program in line with the 
way most apprenticeship programs are structured today.
  These provisions show our veterans America's continuing unwavering 
support of the service and sacrifice that they have made on behalf of 
this country. Particularly at a time when we are at war, we must ensure 
our servicemembers that we will fulfill the commitment promised by 
Abraham Lincoln, ``to care for him that shall have borne the battle and 
for his widow and his orphan.''
  In conclusion, I would like to specifically thank Senator Specter and 
his benefits staff for their work on this comprehensive bill, 
specifically Bill Tuerk, Jon Towers and Chris McNamee, and my staff, 
Buddy Menn, Mary Schoelen, Dahlia Melendrez, Ted Pusey, Amanda Krohn, 
and Tandy Barrett, who recently left the committee, for all of their 
hard work in helping to put this legislation together. I urge my 
colleagues to support this legislation on behalf of America's veterans 
and their families.
  I ask unanimous consent that the text of the bill be printed in the 
Record following this statement.
  Mr. FRIST. Mr. President, I ask unanimous consent that the amendment 
at the desk be agreed to, the committee amendment, as amended, be 
agreed to, the bill, as amended, be read a third time and passed, the 
amendment to the title be agreed to, the motions to reconsider be laid 
upon the table en bloc, and that any statements relating to the bill be 
printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 4044) was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The bill (S. 2486), as amended, was read the third time and passed.
  The title was amended so as to read:

       ``A bill to amend title 38, United States Code, to improve 
     and extend housing, education, and other benefits under the 
     laws administered by the Secretary of Veterans Affairs, and 
     for other purposes.''.

                          ____________________