[Congressional Record (Bound Edition), Volume 150 (2004), Part 17]
[Senate]
[Pages 23730-23753]
[From the U.S. Government Publishing Office, www.gpo.gov]




               VETERANS BENEFITS IMPROVEMENT ACT OF 2004

  Mr. SMITH of New Jersey. Mr. Speaker, I move to suspend the rules and 
pass the Senate bill (S. 2486) 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.
  The Clerk read as follows:

                                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 Improvement Act of 2004''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

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

                  TITLE I--VETERANS EARN AND LEARN ACT

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

                      TITLE II--EMPLOYMENT MATTERS

             Subtitle A--Employment and Reemployment Rights

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

                       Subtitle B--Other Matters

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

                      TITLE III--BENEFITS MATTERS

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

                       TITLE IV--HOUSING MATTERS

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

                TITLE V--MATTERS RELATING TO FIDUCIARIES

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

                   TITLE VI--MEMORIAL AFFAIRS MATTERS

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

       TITLE VII--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

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

                       TITLE VIII--OTHER MATTERS

Sec. 801. Principal office of United States Court of Appeals for 
              Veterans Claims.
Sec. 802. Technical amendments relating to the United States Court of 
              Appeals for Veterans Claims.
Sec. 803. Extension of biennial report of Advisory Committee on Former 
              Prisoners of War.
Sec. 804. Availability of administrative and judicial redress for 
              certain veterans denied opportunity to compete for 
              Federal employment.
Sec. 805. Report on servicemembers' and veterans' awareness of benefits 
              and services available under laws administered by 
              Secretary of Veterans Affairs.

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

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

[[Page 23731]]



                  TITLE I--VETERANS EARN AND LEARN ACT

     SEC. 101. SHORT TITLE.

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

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

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

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

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

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

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

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

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

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

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

[[Page 23732]]

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

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

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

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

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

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

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

     SEC. 110. TECHNICAL AND CONFORMING AMENDMENTS.

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

                      TITLE II--EMPLOYMENT MATTERS

             Subtitle A--Employment and Reemployment Rights

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

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

     SEC. 202. REINSTATEMENT OF REPORTING REQUIREMENTS.

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

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

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

     ``Sec. 4334. Notice of rights and duties

       ``(a) Requirement to Provide Notice.--Each employer shall 
     provide to persons entitled to rights and benefits under this 
     chapter a notice of the rights, benefits, and obligations of 
     such persons and such employers under this chapter. The 
     requirement for the provision of notice under this section 
     may be met by the posting of the notice where employers 
     customarily place notices for employees.
       ``(b) Content of Notice.--The Secretary shall provide to 
     employers the text of the notice to be provided under this 
     section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``4334. Notice of rights and duties.''.

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

[[Page 23733]]

     title 38, United States Code, on and after the first date 
     referred to in paragraph (1).

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

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

                       Subtitle B--Other Matters

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

       (a) Contract for Report.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Veterans 
     Affairs shall enter into a contract with a qualified entity 
     to conduct a study of and prepare a report on the employment 
     histories of recently separated servicemembers.
       (b) Content of Report.--(1) The study conducted pursuant to 
     subsection (a) shall consist of an analysis of employment-
     related data that have been collected with respect to 
     recently separated servicemembers.
       (2) In conducting the study, the qualified entity shall--
       (A) determine whether the employment obtained by recently 
     separated servicemembers is commensurate with training and 
     education of those servicemembers;
       (B) determine whether recently separated servicemembers 
     received educational assistance or training and 
     rehabilitation under programs administered by the Secretary 
     of Veterans Affairs under chapter 30 or 31 of title 38, 
     United States Code, or under chapter 1606 of title 10, United 
     States Code;
       (C) determine whether transition assistance services 
     provided to recently separated servicemembers assisted those 
     serv-
     icemembers in obtaining civilian employment;
       (D) analyze trends in hiring of veterans by the private 
     sector; and
       (E) identify recently separated ser-
     vicemembers who have reached senior level management 
     positions.
       (c) Use of Data.--In conducting the study under subsection 
     (a), the qualified entity shall review data compiled and 
     reported by the Bureau of Labor Statistics and shall collect 
     additional data on the employment histories of recently 
     separated servicemembers available from such other sources as 
     the qualified entity determines to be appropriate.
       (d) Contract Requirements.--(1) The contract entered into 
     under subsection (a) shall contain such terms and conditions 
     as the Secretary may require. The contract shall require that 
     the report on the study be submitted to the Secretary not 
     later than 2 years after the date on which the contract was 
     entered into.
       (2) The report required under subsection (a) shall contain 
     the findings and conclusions of the qualified entity on the 
     study and specific recommendations to improve employment 
     opportunities for veterans recently separated from service in 
     the Armed Forces, including, if appropriate, recommendations 
     for--
       (A) the establishment of networks of contacts for 
     employment of such veterans in the private sector;
       (B) outreach to private sector leaders on the merits and 
     sound business practice of hiring such veterans; and
       (C) additional methods to facilitate communication between 
     private sector employers and such veterans who are seeking 
     employment.
       (e) Funding.--Payment by the Secretary for the contract 
     entered into under subsection (a)--
       (1) shall be made from the Department of Veterans Affairs 
     appropriations account from which payments for readjustment 
     benefits are made; and
       (2) may not exceed $490,000.
       (f) Definitions.--In this section:
       (1) The term ``qualified entity'' means an entity or 
     organization that meets the following requirements:
       (A) Demonstrated experience in conducting employment 
     surveys of recently separated servicemembers, including 
     Internet-based surveys, that meet such quality assurance 
     requirements as the Secretary determines appropriate.
       (B) Demonstrated familiarity with veteran employment 
     matters.
       (C) Demonstrated ability in developing plans to market 
     veterans as employment assets.
       (D) Demonstrated ability to acquire services at no cost 
     from other organizations, such as technology, staff services, 
     and advertising services.
       (E) Demonstrated ability to develop relationships, 
     establish employment networks, and facilitate interaction 
     between private and public sector leaders and veterans.
       (2) The term ``employment history'' means, with respect to 
     a recently separated servicemember, training, placement, 
     retention, and advancement in employment of that 
     servicemember.
       (3) The term ``recently separated service-
     member'' means any veteran (as defined in section 101(2) of 
     title 38, United States Code) discharged or released from 
     active duty in the Armed Forces of the United States during 
     the 16-year period beginning on January 1, 1990.

[[Page 23734]]



                      TITLE III--BENEFITS MATTERS

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

       (a) Additional Dependency and Indemnity Compensation.--
     Section 1311 is amended by adding at the end the following 
     new subsection:
       ``(e)(1) Subject to paragraphs (2) and (3), if there is a 
     surviving spouse with one or more children below the age of 
     18, the dependency and indemnity compensation paid monthly to 
     the surviving spouse shall be increased by $250, regardless 
     of the number of such children.
       ``(2) Dependency and indemnity compensation shall be 
     increased under this subsection only for months occurring 
     during the two-year period beginning on the date on which 
     entitlement to dependency and indemnity compensation 
     commenced.
       ``(3) The increase in dependency and indemnity compensation 
     of a surviving spouse under this subsection shall cease 
     beginning with the first month commencing after the month in 
     which all children of the surviving spouse have attained the 
     age of 18.
       ``(4) Dependency and indemnity compensation under this 
     subsection is in addition to any other dependency and 
     indemnity compensation payable under this chapter.''.
       (b) Effective Date.--Subsection (e) of section 1311 of 
     title 38, United States Code, as added by subsection (a), 
     shall take effect with respect to payments for the first 
     month beginning after the date of the enactment of this Act.

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

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

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

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

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

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

     SEC. 305. EFFECTIVE DATE OF DEATH PENSION.

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

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

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

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

       (a) Veterans' Disability Compensation.--Section 1114 is 
     amended--
       (1) by striking ``$104'' in subsection (a) and inserting 
     ``$106'';
       (2) by striking ``$201'' in subsection (b) and inserting 
     ``$205'';
       (3) by striking ``$310'' in subsection (c) and inserting 
     ``$316'';
       (4) by striking ``$445'' in subsection (d) and inserting 
     ``$454'';
       (5) by striking ``$633'' in subsection (e) and inserting 
     ``$646'';
       (6) by striking ``$801'' in subsection (f) and inserting 
     ``$817'';
       (7) by striking ``$1,008'' in subsection (g) and inserting 
     ``$1,029'';
       (8) by striking ``$1,171'' in subsection (h) and inserting 
     ``$1,195'';
       (9) by striking ``$1,317'' in subsection (i) and inserting 
     ``$1,344'';
       (10) by striking ``$2,193'' in subsection (j) and inserting 
     ``$2,239'';
       (11) in subsection (k)--
       (A) by striking ``$81'' both places it appears and 
     inserting ``$82''; and
       (B) by striking ``$2,728'' and ``$3,827'' and inserting 
     ``$2,785'' and ``$3,907'', respectively;
       (12) by striking ``$2,728'' in subsection (l) and inserting 
     ``$2,785'';
       (13) by striking ``$3,010'' in subsection (m) and inserting 
     ``$3,073'';
       (14) by striking ``$3,425'' in subsection (n) and inserting 
     ``$3,496'';
       (15) by striking ``$3,827'' each place it appears in 
     subsections (o) and (p) and inserting ``$3,907'';
       (16) by striking ``$1,643'' and ``$2,446'' in subsection 
     (r) and inserting ``$1,677'' and ``$2,497'', respectively; 
     and
       (17) by striking ``$2,455'' in subsection (s) and inserting 
     ``$2,506''.
       (b) Additional Compensation for Dependents.--Section 
     1115(1) is amended--
       (1) by striking ``$125'' in subparagraph (A) and inserting 
     ``$127'';
       (2) by striking ``$215'' and ``$64'' in subparagraph (B) 
     and inserting ``$219'' and ``$65'', respectively;
       (3) by striking ``$85'' and ``$64'' in subparagraph (C) and 
     inserting ``$86'' and ``$65'', respectively;
       (4) by striking ``$101'' in subparagraph (D) and inserting 
     ``$103'';
       (5) by striking ``$237'' in subparagraph (E) and inserting 
     ``$241''; and
       (6) by striking ``$198'' in subparagraph (F) and inserting 
     ``$202''.
       (c) Clothing Allowance for Certain Disabled Veterans.--
     Section 1162 is amended by striking ``$588'' and inserting 
     ``$600''.

[[Page 23735]]

       (d) Dependency and Indemnity Compensation for Surviving 
     Spouses.--(1) Section 1311(a) is amended--
       (A) by striking ``$948'' in paragraph (1) and inserting 
     ``$967''; and
       (B) by striking ``$204'' in paragraph (2) and inserting 
     ``$208''.
       (2) The table in section 1311(a)(3) is amended to read as 
     follows:

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

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

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

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

                       TITLE IV--HOUSING MATTERS

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

        The text of section 2101 is amended to read as follows:
       ``(a) Acquisition of Housing With Special Features.--(1) 
     Subject to paragraph (3), the Secretary may assist a disabled 
     veteran described in paragraph (2) in acquiring a suitable 
     housing unit with special fixtures or movable facilities made 
     necessary by the nature of the veteran's disability, and 
     necessary land therefor.
       ``(2) A veteran is described in this paragraph if the 
     veteran is entitled to compensation under chapter 11 of this 
     title for a permanent and total service-connected disability 
     that meets any of the following criteria:
       ``(A) The disability is due to the loss, or loss of use, of 
     both lower extremities such as to preclude locomotion without 
     the aid of braces, crutches, canes, or a wheelchair.
       ``(B) The disability is due to--
       ``(i) blindness in both eyes, having only light perception, 
     plus
       ``(ii) loss or loss of use of one lower extremity.
       ``(C) The disability is due to the loss or loss of use of 
     one lower extremity together with--
       ``(i) residuals of organic disease or injury; or
       ``(ii) the loss or loss of use of one upper extremity,

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

     SEC. 402. TRANSITIONAL HOUSING AMENDMENTS.

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

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

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

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

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

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

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

[[Page 23736]]

     follows and inserting ``such number of percentage points as 
     the Secretary shall prescribe for purposes of this 
     section.''.
       (c) No Effect on Guarantee of Loans Under Hybrid Adjustable 
     Rate Mortgage Guarantee Demonstration Project.--The 
     amendments made by this section shall not be construed to 
     affect the force or validity of any guarantee of a loan made 
     by the Secretary of Veterans Affairs under the demonstration 
     project for the guarantee of hybrid adjustable rate mortgages 
     under section 3707A of title 38, United States Code, as in 
     effect on the day before the date of the enactment of this 
     Act.

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

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

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

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

                TITLE V--MATTERS RELATING TO FIDUCIARIES

     SEC. 501. DEFINITION OF FIDUCIARY.

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

     ``Sec. 5506. Definition of `fiduciary'

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

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

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

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

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

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

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

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

     SEC. 503. MISUSE OF BENEFITS BY FIDUCIARIES.

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

     ``Sec. 6106. Misuse of benefits by fiduciaries

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

     ``Sec. 6107. Reissuance of benefits

       ``(a) Negligent Failure by Secretary.--(1) In any case in 
     which the negligent failure of the Secretary to investigate 
     or monitor a fiduciary results in misuse of benefits by the 
     fiduciary, the Secretary shall pay to the beneficiary or the 
     beneficiary's successor fiduciary an amount equal to the 
     amount of benefits that were so misused.
       ``(2) There shall be considered to have been a negligent 
     failure by the Secretary to investigate and monitor a 
     fiduciary in the following cases:
       ``(A) A case in which the Secretary failed to review a 
     fiduciary's accounting within 60 days of the date on which 
     that accounting is scheduled for review.
       ``(B) A case in which the Secretary was notified of 
     allegations of misuse, but failed to act within 60 days of 
     the date of such notification to terminate the fiduciary.
       ``(C) In any other case in which actual negligence is 
     shown.
       ``(b) Reissuance of Misused Benefits in Other Cases.--(1) 
     In any case in which a fiduciary described in paragraph (2) 
     misuses all or part of an individual's benefit paid to such 
     fiduciary, the Secretary shall pay to the beneficiary or the 
     beneficiary's successor fiduciary an amount equal to the 
     amount of such benefit so misused.
       ``(2) Paragraph (1) applies to a fiduciary that--
       ``(A) is not an individual; or

[[Page 23737]]

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

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

     SEC. 504. ADDITIONAL PROTECTIONS FOR BENEFICIARIES WITH 
                   FIDUCIARIES.

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

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

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

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

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

``5508. Periodic onsite reviews of institutional fiduciaries.
``5509. Authority to require fiduciary to receive payments at regional 
              offices of the Department when failing to provide 
              required accounting.''.

       (b) Judicial Orders of Restitution.--(1) Chapter 61, as 
     amended by section 503(a), is further amended by adding at 
     the end the following new section:

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

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

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

     SEC. 505. ANNUAL REPORT.

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

     ``Sec. 5510. Annual report

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

``5510. Annual report.''.

     SEC. 506. ANNUAL ADJUSTMENT IN BENEFITS THRESHOLDS.

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

     SEC. 507. EFFECTIVE DATES.

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

                   TITLE VI--MEMORIAL AFFAIRS MATTERS

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

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

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

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

     ``Sec. 2412. Lease of land and buildings

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

[[Page 23738]]

       ``(e) National Cemetery Administration Facilities Operation 
     Fund.--(1) There is established on the book of the Treasury 
     an account to be known as the `National Cemetery 
     Administration Facilities Operation Fund' (in this section 
     referred to as the `Fund').
       ``(2) The Fund shall consist of the following:
       ``(A) Proceeds from the lease of land or buildings under 
     this section.
       ``(B) Proceeds of agricultural licenses of lands of the 
     National Cemetery Administration.
       ``(C) Any other amounts appropriated to or otherwise 
     authorized for deposit in the Fund by law.
       ``(3) Amounts in the Fund shall be available to cover costs 
     incurred by the National Cemetery Administration in the 
     operation and maintenance of property of the Administration.
       ``(4) Amounts in the Fund shall remain available until 
     expended.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

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

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

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

       TITLE VII--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

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

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

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

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

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

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

     SEC. 704. TERMINATION OF LEASES.

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

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

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

                       TITLE VIII--OTHER MATTERS

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

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

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

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

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

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

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

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

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

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

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey (Mr. Smith) and the gentleman from Maine (Mr. Michaud) each will 
control 20 minutes.
  The Chair recognizes the gentleman from New Jersey (Mr. Smith).
  Mr. SMITH of New Jersey. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I rise in strong support of S. 2486, the Veterans 
Benefits Improvement Act of 2004. This solid compromise package 
incorporates 14 benefit bills that have been referred to the House 
Committee on Veterans' Affairs, this Congress and contains more than 40 
substantive provisions. S. 2468 would enhance a wide range of veterans' 
benefits, including protections for mobilized servicemembers.
  I want to draw my colleagues' attention to Title I of this 
comprehensive

[[Page 23739]]

bill, which is derived from H.R. 1716, the Veterans Earn and Learn Act. 
This is a bill that I introduced last year along with the ranking 
member, the gentleman from Illinois (Mr. Evans), and others.
  The Veterans Earn and Learn Act represents the fifth in a series of 
employment and business opportunities bills that our Subcommittee on 
Benefits has offered over the last 3 and a half years. The Veterans 
Earn and Learn Act would significantly update the Montgomery GI Bill 
on-job training and apprenticeship programs to reflect learning 
opportunities in American business and industry today. This legislation 
is Congress's first major rewrite of the on-job training, or OJT, and 
apprentice policies for veterans since World War II.
  Additionally, effective October 1, 2005, Title I includes a 10 
percent increase in the monthly educational assistance allowance the VA 
furnishes to veterans and others pursuing this particular type of 
training.
  The Veterans Earn and Learn Act is timely because almost 200,000 
service-
members and Reservists separate each year, and they would now all be 
eligible to use these Earn and Learn initiatives to continue to build 
transferrable skills.
  VA's OJT and apprenticeship program is a valuable program for 
employers as well. Tapping into veterans as a rich resource of skilled 
and qualified employees is a shrewd business strategy for employers of 
all sizes. Veterans bring a unique combination of skill, discipline, 
character and talent to the workplace.
  Title II of the compromise focuses on protecting the civilian job 
benefits of activated Reservists. In light of longer active duty tours, 
the major provision here would increase from 18 to 24 months the 
maximum period of employer-sponsored health care coverage that a 
Reservist-employee may elect to continue to receive.
  Title III, Mr. Speaker, focuses on veterans' benefits matters. The 
key provision of this title is a $250 monthly increase in dependency 
and indemnity payments for a surviving spouse with children under the 
age of 18. This increase would be payable for 2 years following the 
service-connected death of a servicemember or veteran.
  Title IV enhances housing benefits for veterans. Among its important 
provisions is an increase of the maximum VA home loan to 25 percent of 
the Freddie Mac conforming loan amount for a single family residence. 
The increase raises from $240,000 to $333,700 the maximum VA home loan 
guaranty.
  I am also pleased that this title makes some needed changes to 
provide flexibility in VA's administration of Transitional Housing 
program for homeless veterans. The very first loan under this program 
should close this month, I would point out to my colleagues, and I am 
looking forward to several more projects getting under way in the next 
6 months.
  Title V focuses on protecting some of our most vulnerable veterans 
and dependents when it is necessary to pay the VA benefits on their 
behalf to a third party.
  This bill also makes improvements to the Servicemembers Civil Relief 
Act. I am pleased it includes provisions that I had authored, including 
one to furnish additional protections to servicemembers and their 
spouses with respect to residential and motor vehicle leases when the 
servicemember is mobilized or sent to a new duty assignment, sometimes 
with little advance notice.
  Finally, I am especially pleased that one of the sections of Title 
VIII would allow 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, if that location would allow greater cost 
efficiencies or a permanent building for the court.
  Mr. Speaker, I rise today in strong support of S. 2486, the Veterans 
Benefits Improvement Act of 2004.
  I appreciate the opportunity to work with Arlen Specter and Bob 
Graham, the distinguished chairman and ranking member, respectively, of 
the Senate Committee on Veterans' Affairs, in writing this 
comprehensive legislation. I thank them both for their leadership.
  The Veterans' Benefits Improvement Act of 2004 incorporates 14 
benefits bills that have been referred to the House Committee on 
Veterans' Affairs this Congress. S. 2486 contains more than 40 
substantive provisions which would enhance programs affecting veterans' 
education, training, employment, reemployment, compensation and 
pension, housing, fiduciary, protections for mobilized service-
members, and other benefits.
  Mr. Speaker, I want to draw my colleagues' attention to title one of 
this comprehensive bill, the Veterans Earn and Learn Act, which is 
derived from H.R. 1716, introduced by Ranking Member Lane Evans and me 
and many others.
  This section represents the fifth of six measures in a Veterans' Jobs 
and Business Opportunities package that our Subcommittee on Benefits 
has authored over the last 3\1/2\ years. I appreciate the vision and 
bipartisan leadership of Jack Quinn and Bob Filner, followed by J.D. 
Hayworth and Bob Filner, then Mike Simpson and Silvestre Reyes, and now 
Henry Brown and Michael Michaud on this package.
  Title one of the bill would significantly update the on-job training 
and apprenticeship programs administered by the Department of Veterans 
Affairs to reflect learning opportunities in American business and 
industry today. Indeed, this legislation is Congress' first major 
rewrite of on-job training, OJT, and apprenticeship policies for 
veterans since World War II.
  Plus, effective October 1 of 2005, the bill would increase by 10 
percent the monthly educational assistance allowance that the 
Department of Veterans Affairs furnishes eligible veterans, dependent 
widows and children, and Reservists.
  The Veterans Earn and Learn title of the bill is timely because 419 
military occupational specialties are currently transferable to the 
civilian economy. Almost 200,000 separating servicemembers per year, 
including Reservists, would be eligible to use these Earn and Learn 
initiatives to continue to build transferable skills. This measure 
represents a unique opportunity for veterans, Reservists, and dependent 
widows and children to use their VA educational assistance benefits to 
augment the entry-level wage the employer pays them as they train on 
the job. As the training wage increases over time, the monthly VA 
educational assistance allowance decreases.
  VA's OJT and apprenticeship program is a valuable program for 
employers, too. For example, in a 3-year apprenticeship, VA education 
benefits under this measure would augment the veteran's training wage 
furnished by the employer by $17,891. In fact, Missouri has documented 
that VA's on-job training and apprenticeship programs improve employee 
retention and bring significant federal training dollars to Missouri 
communities to the tune of $38 million annually. Tapping into veterans 
as a rich source of skilled and qualified employees is a shrewd 
business strategy for employers of all sizes, as veterans bring a 
unique combination of skill, discipline, character, and talent to the 
workplace.
  The monthly OJT/apprenticeship rates vary based on eligibility. But 
here are some brief examples of the amount of VA educational program 
allowances beneficiaries would receive in 1- and 2-year on-job training 
programs and 3- and 4-year apprenticeships under the Montgomery GI 
Bill:
  A Reservist participating in a 1-year on-job training program as a 
management trainee in a retail establishment would receive $2,471 over 
12 monthly payments.
  A widow or dependent child who participates in a 2-year training 
program as a financial adviser with an investment firm would receive 
$9,643 over 24 monthly payments.
  A veteran who participates in a 3-year apprenticeship program in 
plumbing would receive $17,891 over 36 monthly payments.
  A veteran who participates in a 4-year apprenticeship program as an 
electrician would receive $22,529 over 48 monthly payments.
  Mr. Speaker, it's important to note that on-job training and 
apprenticeships are excellent, practical ways for veterans to use their 
VA education benefits, especially for those who are married with 
families to support. VA education benefits are not limited to classroom 
training.
  Let me now highlight other titles in this comprehensive bill.
  Title two focuses on employment matters. A major aspect of this title 
is a provision to increase from 18 to 24 months the maximum period of 
employer-sponsored health coverage that an employee covered by the 
Uniform Services Employment and Reemployment Rights Act of 1994 may 
elect to continue to receive. This extension of coverage is essential 
given the longer active-duty tours of our reservists. I commend 
Representatives Henry

[[Page 23740]]

Brown and Michael Michaud for their leadership on this issue.
  Title three focuses on veterans' benefits matters. A key part of this 
title is the provision that provides a $250 monthly increase in 
dependency and indemnity payments for a surviving spouse with children 
under age 18. These payments are authorized during the 2-year period 
following the service-connected death of the servicemember or veteran. 
I commend Chairman Specter and Ranking Member Graham for their 
leadership on this provision.
  Title four enhances housing matters. Among other important 
provisions, this section of the bill increases the maximum VA home loan 
to 25 percent of the Freddie Mac conforming loan amount for a single-
family residence. It also annually indexes the maximum amount of VA's 
home loan guaranty for construction or purchase of a home to that 
Freddie Mac limit. In effect, the increase raises from 240,000 to 
$333,700 the maximum home loan purchase amount on a VA-guaranteed 
purchase.
  I am also very pleased this section makes some small needed changes 
the Department of Veterans Affairs has asked for to provide greater 
flexibility in its administration of the Transitional Housing program. 
I was pleased to work with VA in this regard so as to make the 
Transitional Housing program as effective as possible.
  Title five focuses on fiduciary matters to protect our more 
vulnerable veterans and dependents when they require a third party 
payee to receive VA benefits on their behalf. These provisions are the 
result of 2 hearings held by the Subcommittee on Benefits, and I 
commend Representatives Henry Brown and Susan Davis for their work on 
this section of the bill.
  Title six addresses various memorial affairs issues, including 
designating a monument constructed at the Riverside National Cemetery 
in Riverside, CA, as a Prisoner of War/Missing in Action National 
Memorial.
  Title seven makes various improvements to the Servicemembers Civil 
Relief Act. I am very pleased this section of the bill includes the 
provision I authored to furnish additional protections to 
servicemembers and their spouses with respect to residential and motor 
vehicle leases. This provision modifies section 305 of the 
Servicemembers Civil Relief Act to address the reality of 
servicemembers having to terminate leases due to longer-term 
mobilization or deployment. This provision clarifies that if a 
servicemember terminates a lease entered into jointly with a 
dependent--usually the spouse--the obligations of both the 
servicemember and the dependent are terminated. This affords military 
families the additional protections they need when the servicemember is 
mobilized to a new duty assignment--sometimes with little advance 
notice--and the family, too, must relocate.
  Lastly, title eight addresses other important matters. I am pleased 
this section authorizes that the principal office of the U.S. Court of 
Appeals for Veterans Claims to be located at any location in the 
Washington, DC, metropolitan area. Another location may furnish greater 
cost efficiencies for the court.
  In closing, I thank Chairman Brown and Ranking Member Michaud for 
their leadership and continued bipartisan cooperation. I'd also like to 
thank the staff on both sides of the aisle in the House and Senate 
Committees on Veterans' Affairs for their diligent work in bringing 
this bill to the floor.
  Mr. Speaker, I urge my colleagues to support S. 2486.
  Mr. Speaker, for the benefit of my colleagues, the following is a 
joint explanatory statement describing the compromise agreement we have 
reached with the other body and a letter from the Committee on the 
Judiciary concerning S. 2486 and our committee's response.

         Explanatory Statement on Senate Amendments to S. 2486

       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 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 1, 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 GI 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

[[Page 23741]]

     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 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 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.

[[Page 23742]]




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.
     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.

                      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 38, 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

[[Page 23743]]

     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 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.

[[Page 23744]]


     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.
     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 
     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

[[Page 23745]]

     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 who have been appointed to receive 
     benefits. The required report would include the following (1) 
     the number of beneficiaries in each category (veteran, 
     surviving spouse, child, adult disabled child or parent); (2) 
     the types of benefit being paid (compensation, pension, 
     dependency and indemnity compensation, death pension or 
     benefits payable to a disabled child under chapter 18 of 
     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

[[Page 23746]]

     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 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 
     Stated 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
       In conjunction with the improvements in veterans' benefits, 
     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.

[[Page 23747]]


     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 education 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 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.
                                         House of Representatives,


                                   Committee on the Judiciary,

                                Washington, DC, November 16, 2004.
     Hon. Chris Smith,
     Chairman, Committee on Veterans' Affairs, House of 
         Representatives, Washington, DC.
       Dear Chairman Smith: In recognition of the desire to 
     expedite floor consideration of S. 2486, the ``Veterans 
     Benefits Improvement Act of 2004,'' the Committee on the 
     Judiciary hereby waives consideration of the bill. Section 
     504(b) of the bill creates a new Sec. 6108 of Title 38 of the 
     U.S. Code. This new section gives courts the authority to 
     order restitution to the Department of Veterans Affairs when 
     a fiduciary is convicted of missing veterans benefits. These 
     provisions fall within the committee on the Judiciary's Rule 
     X jurisdiction. However, given the need to expedite this 
     legislation, I will not seek a referral of S. 2486 based on 
     their inclusion.
       The Committee on the Judiciary takes this action with the 
     understanding that the Committee's jurisdiction over these 
     provisions is in no way diminished or altered. I would 
     appreciate your including this letter and your response in 
     the Congressional Record during consideration of S. 2486 on 
     the House floor.
           Sincerely,
                                      F. James Sensenbrenner, Jr.,
     Chairman.
                                  ____

                                         House of Representatives,


                               Committee on Veterans' Affairs,

                                Washington, DC, November 16, 2004.
     Hon. F. James Sensenbrenner, Jr.,
     Chairman, Committee on the Judiciary, Rayburn House Office 
         Building, Washington, DC.
       Dear Mr. Chairman: Thank you for your letter of November 
     16, 2004, regarding the jurisdictional interest of the 
     Committee on the Judiciary in section 504(b) of S. 2486, the 
     Veterans Benefits Improvement Act of 2004.
       Your willingness to forego a sequential referral to 
     expedite House consideration of S. 2486 is most appreciated. 
     The Committee on Veterans' Affairs understands that your 
     letter does not waive jurisdiction of the Committee on the 
     Judiciary over the bill and is not a precedent for other 
     bills.
       Again, thank you for your cooperation in this matter. Be 
     assured I will include our exchange of letters in the 
     Congressional Record.
           Sincerely,
                                             Christopher H. Smith,
                                                         Chairman.

  Mr. Speaker, I reserve the balance of my time.
  Mr. MICHAUD. Mr. Speaker, I yield myself such time as I may consume.

[[Page 23748]]

  Mr. Speaker I rise in strong support of S. 2486, the Veterans 
Benefits Improvement Act of 2004. I would like to thank the ranking 
member, the gentleman from Illinois (Mr. Evans), and the gentleman from 
New Jersey (Mr. Smith) for their leadership on this legislation and my 
good friend and colleague on the Subcommittee on Benefits, the 
gentleman from South Carolina (Mr. Brown). I have enjoyed working with 
him during this Congress.
  I was proud to join Members on both sides of the aisle in introducing 
provisions to help our veterans and servicemembers and their families. 
It is good to see that work contained in this final bill.
  This legislation demonstrates the bipartisan nature of the Committee 
on Veterans Affairs and our ability to work together for the good of 
our Nation's veterans. The Members and staff of both sides of the aisle 
also should be recognized for their efforts in putting legislation 
together.
  Finally, I would like to acknowledge the good work done by the other 
body. Senator Specter and Senator Graham and their staffs worked 
diligently to bring this bill forward. It has been a bipartisan and 
bicameral effort. Our Nation's veterans and their families would be 
better off with this legislation.
  S. 2486 is a comprehensive bill drawn from a number of provisions 
that came before our committee. I would like to take a moment to point 
out just a few.
  Many of the provisions in Title I, the Veterans Earn and Learn Act of 
S. 2486, are drawn from H.R. 1716. Title I will provide improved 
benefits and job assistance for future skilled workers as they leave 
military service. The gentleman from South Carolina (Mr. Brown) 
introduced and I was happy to support a provision to extend eligibility 
of employer-sponsored health care coverage to Reservists who have been 
activated for up to 24 months of active service. This provision is 
found in section 201 of the bill.
  Section 2111 drawn from a bipartisan H.R. 4173 provides for a report 
of employment placement, retention and advancement of recently 
separated servicemembers.
  I am also pleased that the other body included provisions similar to 
H.R. 1750 to increase by $250 the amount of dependency and indemnity 
compensation benefits received by surviving spouses with children under 
age 18 for the first 2 years of eligibility. The ranking member, the 
gentleman from Illinois (Mr. Evans), has been a long-time advocate for 
our Nation's disabled veterans and their families.
  S. 2486 contains provisions drawn from the Evans bill, H.R. 4172, to 
codify certain disabilities as presumptive disabilities for atomic 
veterans and to provide an offset rather than a bar to benefits when an 
atomic veteran or survivor receives benefits under the Radiation 
Exposure Compensation Act.
  I would like to thank the gentleman from New Hampshire (Mr. Bradley) 
for the opportunity to join with him in introducing H.R. 2163 to 
equalize the position of surviving spouses who receive death pension 
benefits and who are also the beneficiaries of veterans' life 
insurance. The provisions of H.R. 2163 are contained in section 303 and 
305 of this bill.
  The Veterans Benefits Improvement Act of 2004 includes a provision 
that is drawn from my bill, H.R. 2612, to allow veterans who have lost 
or lost the use of both arms at or above the elbow due to a service-
connected disability to receive a special adaptive housing grant. This 
will provide needed assistance to those veterans currently being 
disabled in Iraq and Afghanistan as well as veterans of former wars, 
such as James Moore of Lincoln, Nebraska, who contacted the committee 
concerning this issue.
  The gentlewoman from California (Mrs. Davis) has been a leader on our 
committee for veterans' housing issues, and her work is reflected in S. 
2486. Section 103 is drawn from her bill, H.R. 4616, and provisions 
from the Senate to extend the authority for hybrid adjustable 
mortgages.
  S. 2486 will also benefit Native American veterans in my State and 
across the country. The Pleasant Point and Indian Township Passamoquody 
Tribe of Maine has entered into a memorandum of understanding to 
participate in the VA's Native America Home Loan pilot project. The 
newest member of our committee, the gentlewoman from South Dakota (Ms. 
Herseth), introduced H.R. 5153 to extend this program. That provision 
is included as section 406 of this bill.
  The gentlewoman from California (Mrs. Davis) has also been a leader 
in working to protect our most vulnerable veterans, and I was pleased 
to join her in introducing H.R. 4032 to improve protection and remedies 
in the event of fiduciary misuse. Many of the provisions of H.R. 4032 
are included in Title V of the Veterans Benefit Improvement Act of 
2004.
  Mr. Speaker, as you can see, there has been a great deal of 
bipartisan support put together in this bill. S. 2486 will improve the 
lives of veterans of today and provide a sense of security for those 
servicemembers who are risking their lives all around the world. I urge 
all Members to support this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield such time as he may 
consume to the gentleman from South Carolina (Mr. Brown), who has been 
a great workhorse on this committee. As I indicated earlier, this bill 
alone has some 40 disparate provisions. It encompasses over 14 bills. 
The gentleman, as the subcommittee chairman, has walked point on all of 
this; and I want to thank the distinguished chairman for his very able 
and very effective leadership as subcommittee chairman.
  Mr. BROWN of South Carolina. Mr. Speaker, I thank the gentleman for 
his kind remarks.
  Mr. Speaker, I rise today in strong support of S. 2486, the Veterans 
Benefit Improvement Act of 2004. We have been working on this 
comprehensive bill throughout the 108th Congress, like our chairman 
said. I commend the Committee on Veteran's Affairs leadership for 
bringing it to the floor today.
  It incorporates 14 separate House bills and comprises 43 substantive 
provisions. Countless servicemembers, veterans and their families will 
directly benefit from S. 2486. Likewise, Mr. Speaker, by significant 
enhancing and modernizing the VA on-the-job training and apprenticeship 
programs for veterans, American businesses and industry will feel the 
positive effects of this bill, as well as 858 civilian occupations 
offer apprenticeships. These improvements can be especially useful to 
American small businesses, the bedrock of our economy.
  I would like to briefly note Title V of the bill, which addresses the 
needs of our most vulnerable veterans, those who require a fiduciary to 
handle monetary benefits received from the VA. It is an unfortunate 
fact that when someone is responsible for another person's money, 
temptations may arise to take advantage of that position, ultimately to 
the detriment of the person being assisted. S. 2486 would add 
protection for incompetent veterans or dependents when their benefits 
are misused.
  Currently, over 100,000 veterans, widows or adult helpless children 
and minors have an appointed fiduciary. While VA overall does a good 
job of protecting this population, S. 2486 addresses many of our 
concerns with the fiduciary program.
  Mr. Speaker, I applaud the gentleman from New Jersey (Mr. Smith), our 
great chairman, and the gentleman from Illinois (Mr. Evans), the 
ranking member, for their continuing foresight and leadership, as well 
as my great friend, the gentleman from Maine (Mr. Michaud), the ranking 
member of the Subcommittee on Benefits.
  In addition to the Subcommittee on Benefits as a whole, I thank the 
members of the committee who worked with the gentleman from Maine (Mr. 
Michaud) and myself for bringing the bill forward.

                              {time}  1415

  The full committee's vice chairman, the gentleman from Florida (Mr. 
Bilirakis), the gentlewoman from Florida (Ms. Ginny Brown-Waite), the 
gentlewoman from California (Mrs. Davis), the gentleman from New 
Hampshire (Mr. Bradley), the gentleman from

[[Page 23749]]

Texas (Mr. Reyes); indeed, this has been a team effort.
  I also want to thank the Subcommittee on Benefits staff on both sides 
of the aisle.
  Mr. Speaker, I urge my colleagues to support the Veterans Benefit 
Improvement Act of 2004.
  Mr. MICHAUD. Mr. Speaker, I yield 2 minutes to the gentleman from 
Illinois (Mr. Evans), the ranking member of the committee.
  Mr. EVANS. Mr. Speaker, I rise in strong support of S. 2486. This 
legislation includes a number of measures to improve the lives of this 
Nation's veterans and their families.
  I also want to thank the gentleman from New Jersey (Mr. Smith), the 
chairman of committee, and the gentleman from South Carolina (Mr. 
Brown) and the gentleman from Maine (Mr. Michaud), the chairman and 
ranking member of the Subcommittee on Benefits, and both of their 
staffs for their hard work in bringing this legislation to the floor.
  In particular, I also want to acknowledge the work and contribution 
of Pat Ryan, who is retiring from the committee after many years of 
service.
  I also want to thank the members of the other body, Senator Specter 
and Senator Graham and their staffs for the contributions made to this 
bill.
  Mr. Speaker, today, we recognize the sacrifices of the men and women 
in uniform who served our Nation. By passing this important legislative 
package, this bill honors their service and provides them with the care 
that they have earned.
  As is the committee's custom, this bill incorporates a large number 
of provisions from bills introduced by other Members from both sides of 
the aisle in both bodies. The House Committee on Veterans Affairs has a 
long-standing record of working in a bipartisan manner, and I am glad 
that we have the gentleman from New Jersey's (Mr. Smith's) leadership 
on his side, who has worked together with us on our side so that we can 
continue this practice.
  I am very pleased to be a sponsor or an original cosponsor of many of 
the other bills which were incorporated into this package and look 
forward to their implementation.
  Mr. Speaker, we can finalize the committee's work for this Congress. 
We have many accomplishments that we can be proud of, and I want to 
thank the chairman and members of the committee for working so hard and 
dedicating our work to our Nation's veterans. I urge all Members to 
vote for this legislation.
  Mr. Speaker, I rise in strong support of S. 2486, a legislative 
package encompassing a number of important measures to assist this 
nation's veterans and their families.
  I would like to thank the Chairman of our Committee, Chris Smith, and 
the Chairman and Ranking Member of the Benefits Subcommittee, Henry 
Brown and Mike Michaud, and their staffs for their work in bringing 
this important legislation to the floor.
  I also want to thank the Members of the other body, Senator Specter 
and Senator Graham and their staffs for their contribution to this 
bill.
  Mr. Speaker, it is incumbent upon us to recognize the many sacrifices 
of the brave men and women in uniform who have so gallantly served our 
Nation. We do so by passing legislation honoring their service and 
providing them with the benefits they surely have earned.
  As is the Committee's custom, this bill incorporates a large number 
of provisions, from bills introduced by Members from both sides of the 
aisle and both bodies. The House Veterans' Affairs committee has a 
long-standing tradition of working in a bipartisan manner and I am 
proud that we have continued this practice as exhibited in this bill. I 
thank the Chairman for his leadership in continuing this tradition. 
This bill is truly the product of a bipartisan, bicameral effort.
  I am very pleased to be a sponsor or an original cosponsor of many of 
the bills which were incorporated into this measure. These provisions 
will improve the quality of our life of our Nation's veterans and their 
families. It honors their service and sacrifice to this country.
  Mr. Speaker, Congress has made important strides in providing quality 
educational assistance to servicemembers, veterans and their families; 
however, we have not made similar progress with respect to the job 
training and vocational programs available under the Montgomery G.I. 
Bill. Accordingly, S. 2486, as amended, is a strong step in the right 
direction in the job training and economic development area.
  Specifically, this bill includes important provisions that would 
modernize, enhance and encourage greater participation in the on-job 
training and apprenticeship programs administered by the Department of 
Veterans Affairs (VA). It is important for veterans to be able to use 
the Montgomery G.I. bill education benefits for academic courses 
leading to a degree. I used VA education benefits to further my own 
education upon leaving military service. It is, however, just as 
important for the future electricians, plumbers, auto mechanics and 
other skilled workers to be able to effectively use the Montgomery G.I. 
Bill to fulfill the training and certification requirements they may 
need to prepare them to transition to the civilian workforce and 
contribute to society. The Committee worked diligently to ensure that 
these provisions accurately reflect contemporary industry and labor 
practices. We also worked with the VA to address its administrative 
concerns regarding these provisions. More important, Mr. Speaker, these 
provisions will provide veterans with improved job-training skills and 
opportunities under the Montgomery G.I. Bill.
  I am pleased to support in the bill a measure brought forth by the 
other body which will allow an additional 10-year period for those Gold 
Star Wives and the surviving widowers of men and women who die during 
military service to use their education benefits. Men and women who die 
during military service are often in their early twenties and leave 
behind young children. By providing an additional 10 years, we will 
allow those surviving spouses an opportunity to raise their children 
before resuming their education. We have learned that this benefit is 
underutilized because surviving spouses are reluctant to resume their 
education while raising young children.
  The bill recognizes the need for continued health insurance for those 
members of the Guard and Reserve who are called up for increasing 
periods of time. Therefore, a provision is included allowing these 
reservists to maintain employer-sponsored health insurance for 24 
months, 6 months longer than that provided by current law.
  I am pleased that a measure introduced by my good friend, the 
gentleman from Massachusetts, Mr. McGovern, is included. He recognized 
that one of the biggest obstacles to effective utilization of 
employment-related rights for returning servicemembers is the lack of 
information concerning those rights. The bill requires the Department 
of Labor to provide employers with a notice of employee rights under 
the Uniformed Services Employment and Reemployment Rights Act, known as 
USERRA, and requires employers to post those notices.
  S. 2486, as amended, also includes a provision requiring a study and 
report on employment, retention and advancement in employment of former 
servicemembers. This study and report will provide valuable information 
and assist Congress in our efforts to do all we can to facilitate the 
transition of servicemembers to the civilian workforce and promote 
veterans' employment opportunities generally.
  Several years ago, an evaluation of VA's programs for survivors found 
that surviving spouses of veterans who have children and who receive 
Dependency and Indemnity Compensation (DIC) need an additional $250 per 
month to maintain the same standard of living as DIC recipients without 
children for the first 5 years after the veteran's death. I joined the 
Ranking Member of the Benefits Subcommittee, Mike Michaud and others in 
introducing H.R. 1750 to implement that recommendation. I am pleased 
that the bill will provide the increased benefit to DIC recipients for 
the first 2 years following eligibility. I regret that funding was not 
available to provide benefits for a longer period. Nonetheless, this is 
an important step in implementing the evaluation's recommendations and 
providing for the widows and widowers who have borne the battle and 
their children.
  I am particularly pleased that included within this bill are 
provisions that would codify current VA regulations regarding 
additional cancers recognized as presumptively service connected under 
the ``Atomic Veterans'' program, and repeal a bar that prevents a 
veteran or survivor from applying for VA compensation, subject to an 
offset, if they have already received compensation from the Justice 
Department under the Radiation Exposure Compensation Act. As the son of 
a veteran who was exposed to ionizing radiation in the Pacific, I have 
long been an advocate for the ``Atomic Veterans'' program and will 
continue my efforts to recognize and honor their often dangerous 
confidential service in defense of this country.

[[Page 23750]]

  Additionally, Mr. Speaker, I support the provision of this bill which 
will exclude VA life insurance proceeds from being counted as income 
for those very low-income survivors of wartime veterans. Currently, 
those who have an effective advocate are able to time their request for 
death pension in a manner which will allow them to give up a few months 
of death pension benefits in order to keep the veteran's life insurance 
proceeds. Those without effective advocacy often lose a year of 
benefits. We care for the widow and widower of those who have borne the 
battle by providing a simple solution to the problem identified by VA 
in current law.
  Veterans who are disabled by reason of VA medical treatment or 
vocational rehabilitation activities qualify for cash benefits and 
grants for specially adapted housing. They are, however, denied grants 
for automobiles and other motor vehicle adaptations. A provision drawn 
from a bill introduced by Mr. Reyes and myself will not allow such 
veterans to obtain an automobile grant.
  Veterans who have lost the use of their arms do not currently qualify 
for specially adapted housing. I joined Mr. Michaud in introducing a 
bill to permit such veterans to qualify for this benefit and am pleased 
this bill includes a provision drawn from that bill.
  This bill will significantly improve VA's home loan program, 
including home loans for Native Americans. I am pleased that provision 
from bills introduced by Mrs. Davis of California and the newest Member 
of our Committee, Ms. Herseth of South Dakota, are included in the 
final bill.
  VA's most vulnerable veterans are those who require a fiduciary to 
handle their financial benefits. I joined Mrs. Davis of California in 
introducing legislation to provide improved protections for 
beneficiaries whose benefits are misused by fiduciaries. This bill 
contains a number of important provisions drawn from H.R. 4032.
  The bill also makes a number of improvements to the Servicemembers 
Civil Relief Act which was substantially rewritten in the first session 
of this Congress.
  Mr. Speaker, many provisions from this comprehensive package are 
drawn from bills which have been considered by the House Committee on 
Veterans Affairs. The bill has been enhanced and improved by measures 
considered by the other body. As we finalize the Committee's work for 
this Congress we have many accomplishments of which we can be proud.
  Again, I want to thank Chairman Smith for his leadership and his 
dedication to serving our nation's veterans. This is an excellent bill 
which will make a difference in the lives of this nation's veterans and 
their families. I urge all Members to show their support for the men 
and women who have worn the uniform in defense of our country by voting 
to pass this legislative package.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield such time as he may 
consume to the gentlewoman from Florida (Ms. Ginny Brown-Waite), a 
distinguished member of our committee.
  Ms. GINNY BROWN-WAITE of Florida. Mr. Speaker, I thank the gentleman 
very much for the time.
  I am very pleased to support Senate 2486, the Veterans Benefit 
Improvement Act of 2004, and I am glad we got it finished this year. I 
know that there was some question about whether or not we would have 
time to get this very important bill up, and I certainly commend the 
gentleman from New Jersey (Mr. Smith), the chairman, and the gentleman 
from Illinois (Mr. Evans), the ranking member, for their efforts on 
behalf of veterans, along with all the members of the committee who are 
truly dedicated to America's heroes.
  This bill includes an expansion of educational benefits for veterans 
and clarifies protections to servicemen and -women under the 
Servicemember Civil Relief Act, and it also improves the housing 
benefit available to veterans through the VA home loan.
  It is the last provision of this bill that I would like to elaborate 
on as it is the product of a bipartisan collaboration between the 
gentlewoman from California (Mrs. Davis) and myself. Certainly, the 
chairman of the committee was very, very generous in working so hard on 
the bill and all the provisions of the bill, but this particular 
provision is one that will certainly impact our young men and women 
returning from Iraq.
  Like so many other aspects of a soldier's life, many soldiers 
postpone homeownership until after they are out of the service. For 
these soldiers, as housing prices increase, the VA home loan value 
actually decreases in real terms.
  The rising housing market erodes the purchasing power of the VA home 
loan. Depending on where the veteran lives, the current maximum of 
$240,000 is simply insufficient to meet their housing needs.
  The bill, which encompasses a bill which the gentlewoman from 
California (Mrs. Davis) and I had worked on, which passed this House, 
indexes the maximum VA guarantee amount to 25 percent of the Freddie 
Mac conforming loan rate. The prevailing VA loan under this new change 
would be $333,700 in 2004, and it would continue to adjust as housing 
market needs increase.
  We are all very proud of the young men and women who serve our 
Nation, past and present, and I am sure that the Members will agree 
that the value of their benefit should not vary depending on where they 
live or where they choose to purchase a home.
  This legislation is very important and timely, and I urge my 
colleagues' support. I urge all the Members to support this.
  Again, I commend my colleagues and especially the chairman for 
working so hard on this, what could very easily be called an omnibus, 
comprehensive bill to benefit our Nation's veterans.
  Mr. MICHAUD. Mr. Speaker, how much time do I have remaining?
  The SPEAKER pro tempore (Mr. Simpson). The gentleman from Maine (Mr. 
Michaud) has 12 minutes remaining. The gentleman from New Jersey (Mr. 
Smith) has 10 minutes remaining.
  Mr. MICHAUD. Mr. Speaker, I yield 3 minutes to the gentleman from 
Texas (Mr. Rodriguez).
  Mr. RODRIGUEZ. Mr. Speaker, I rise today in support of S. 2486, the 
Veterans Benefit Improvement Act, and I would like to take this 
opportunity to thank the gentleman from New Jersey (Chairman Smith), as 
well as the gentleman from Illinois (Ranking Member Evans) and the 
gentleman from Maine (Mr. Michaud), the ranking member of the 
Subcommittee on Benefits, for their leadership in this particular 
issue.
  One of the best things about being a member of this committee is the 
ability to pass a comprehensive bill, a benefits bill, every year while 
keeping on with the PAYGO provisions.
  Although I was worried this particular year that that might not 
happen, I am glad that our colleagues in the Senate and the staff of 
our committees worked out this compromise.
  Mr. Speaker, this bill has many wonderful provisions that would 
enhance the benefits of our veterans, National Guardsmen and their 
families receive, including additional educational benefits.
  With passage of this particular piece of legislation, veterans will 
be able to use their Montgomery GI bill for apprenticeships and on-the-
job training, as well as national admissions exams.
  I am very pleased that this bill acknowledges the rewards and 
sacrifices many of our Reservists are making. With the passage of this 
particular piece of legislation, those men and women, Reservists who 
are called to active duty for more than 24 consecutive months, will be 
able to pay into the GI bill and become eligible for benefits.
  This bill also includes some enhanced VA home loan language, which I 
know the gentlewoman from California (Mrs. Davis), my colleague, has 
been advocating for.
  Like all Americans, our veterans dream of obtaining the American 
dream of homeownership. Our veterans have fought selflessly on behalf 
of our country and are entitled to the benefits we have promised them, 
including home loan benefits. Unfortunately, for many, this dream is 
faced with many obstacles.
  The current VA home loan limit of $240,000 prevents many veterans 
from using their loan benefits to purchase a home in high-cost areas, 
such as in California or Florida and parts of the State of Texas. This 
legislation indexes the maximum loan amount to 100 percent of the 
Freddie Mac conforming loan rate to make the VA home loans compatible 
with the home loans available to the public nationwide. Additionally, 
this legislation allows the

[[Page 23751]]

maximum VA loan amounts to adjust automatically each year to Freddie 
Mac standards in order to remain compatible with the national housing 
markets.
  This legislation is extremely important. During 2003, 3 million 
veterans took advantage of the VA home loans, and I am positive more 
veterans will be able to take advantage of this particular benefit 
because of the improvements we are making today. As our troops are 
fighting in Iraq and Afghanistan, we must continue to show them the 
thanks of a grateful Nation.
  I cannot think of a better way of saying thank you than improving the 
benefits of our soldiers, and so by this particular legislation, 
although there are many benefits we would like to take advantage of for 
our veterans, I am glad that the committee has been able to work with 
the money to make this happen.
  Mr. SMITH of New Jersey. Mr. Speaker, we reserve the balance of our 
time.
  Mr. MICHAUD. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
California (Mrs. Davis).
  Mrs. DAVIS of California. Mr. Speaker, with another Veterans Day 
recently passed, we heard much about the incredible sacrifices made by 
America's veterans and their tremendous bravery. I strongly echo those 
sentiments.
  Because our courageous military personnel are willing to go into 
battle and sacrifice on our behalf, America's independence and 
liberties have remained intact for over 200 years, and we are truly 
indebted to those who fought in the Armed Forces.
  However, Mr. Speaker, I strongly feel that we must honor these brave 
men and women with more than our words. After risking everything on our 
behalf, our veterans ask only that we work to improve the services they 
earned through their dedication and their bravery.
  This is why the Veterans Benefit Improvement Act of 2004 before us 
today greatly enhances the services we provide to our military heroes. 
It increases the compensation we provide to surviving spouses and their 
children; gives veterans new opportunities to receive vocational 
training when leaving the military; and protects the civilian jobs of 
Reservists deployed overseas.
  I was very honored, Mr. Speaker, by the opportunity to contribute 
directly to this comprehensive benefits legislation.
  During my first term in Congress, I became interested in improving 
the home loan program offered by the Department of Veterans Affairs and 
introduced H.R. 1735 and cosponsored H.R. 4345, which increases the 
home loan limit available to veterans. I also introduced H.R. 4616 to 
offer adjustable-rate mortgages through the VA program.
  Our veterans certainly deserve the same opportunity for home 
ownership as the public at large and the freedom to choose which loan 
will best meet their needs.
  This legislation links the VA home loan amount to the Freddie Mac 
index to guarantee annual increases, and at the same time, it extends a 
program offering veterans the freedom to choose a fixed-rate or an 
adjustable-rate mortgage.
  It is particularly helpful and a real victory for those veterans in 
San Diego because we are a high-cost area.
  Additionally, S. 2486 provides new protections from fraud and abuse 
to a vulnerable class of veterans who require a guardian or fiduciary 
to oversee their finances and VA payments.
  My staff in San Diego tried to assist a veteran who lost out on his 
VA disability compensation over a long period of time because his 
fiduciary had withheld payment for herself. Unfortunately, we could not 
recover the veteran's losses because current law did not provide 
revenues to recoup stolen payments.
  After learning about this abuse, we introduced H.R. 4032 to give the 
VA the authority to conduct more thorough background checks of 
fiduciaries and to give veterans who fall victim to this abuse new 
revenues to recover their losses, and I am pleased these provisions 
were included in the legislation before us today.
  I want to thank the House leadership for bringing this comprehensive 
veterans benefits package before the Congress and for acting in the 
interest of our former service members, and I urge my colleagues to 
support it.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield 2 minutes to the 
gentleman from Maine (Mr. Michaud), my good friend and colleague, to 
allocate as he would like.
  Mr. MICHAUD. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
South Dakota (Ms. Herseth).
  Ms. HERSETH. Mr. Speaker, I rise in support of the veterans bills 
being considered today and to thank and congratulate my colleagues, 
especially the gentleman from New Jersey (Chairman Smith), the 
gentleman from Illinois (Ranking Member Evans), the gentleman from 
South Carolina (Mr. Brown) and the gentleman from Maine (Mr. Michaud) 
and their staff for their hard work and commitment to these important 
bills. I want to commend the gentleman from Texas (Mr. Rodriguez), my 
colleague and friend, as well for his distinguished service on the 
Committee on Veterans Affairs.
  I express my strong support today for the Veterans Benefits 
Improvement Act which includes two measures I introduced earlier this 
year to extend important veterans programs scheduled to expire.
  The first of these measures is a provision to extend to 2010 the 
Veterans Administration's Native American Home Loan pilot program. This 
program directs home loans to eligible Native American veterans who 
wish to purchase, construct or improve a home on tribal trust lands. 
This extension will allow more veterans living on tribal trust lands to 
take advantage of this important benefit over the next 6 years.
  Since the inception of this pilot program in 1992, the Department of 
Veterans Affairs has made more than 400 direct loans to Native American 
veterans, including loans to 17 veterans from my State of South Dakota. 
These loans are important tools for helping Native Americans purchase, 
construct or improve homes in Indian country.
  The second measure which I introduced extends to 2009 the requirement 
that the Advisory Committee on Former Prisoners of War submit biennial 
reports to the Secretary of Veterans Affairs on the programs and 
activities of the Department of Veterans Affairs that pertain to former 
prisoners of war.
  The Advisory Committee on Former Prisoners of War reviews Department 
policies and makes suggestions to improve compensation, rehabilitation 
programs and health care benefits for former POWs. Passage of the 
Veterans Benefits Improvement Act would require reports from the 
Advisory Committee on former POWs every 2 years through 2009, a 5-year 
extension of current law.
  Thanks again to my fellow members of the Committee on Veterans 
Affairs and all staff for their work on these important bills. At a 
time in our Nation's history when we are asking men and women in our 
Armed Forces for greater sacrifices, we must make sure we provide the 
services promised to our veterans. I look forward to supporting these 
measures and continuing to work with my colleagues to ensure they 
receive the benefits they have earned and deserve.

                              {time}  1430

  Mr. SMITH of New Jersey. Mr. Speaker, I reserve the balance of my 
time.
  Mr. MICHAUD. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
California (Ms. Waters).
  Ms. WATERS. Mr. Speaker, I am very pleased to join with my colleagues 
today in support of veterans. On Veterans Day, I visited a program in 
my district known as U.S. Vets. This is a program that houses veterans 
in transition. They really work with the homeless. They have a huge 
residential complex, and the veterans are able to stay at this complex 
while they get job training leading to a job. In addition to that, they 
have a central facility there where they prepare meals for the 
veterans. They also have a wonderful computer room where veterans are 
learning computer skills.

[[Page 23752]]

  And while I was very pleased to be there on Veterans Day with them, I 
was reminded of all those things we need to do for veterans that should 
have been done a long time ago. This bill goes a long way to attending 
to some of those things that we should have done.
  For example, surviving spouses can now get $250 in dependency and 
indemnity compensation. Veterans who were exposed to radiation can now 
be eligible for VA compensation. We increase the educational assistance 
by 10 percent, allowing veterans to pursue a full-time apprenticeship 
program, or on-the-job training. There are other benefits in this bill.
  We can all be proud on both sides of the aisle that we are finally 
paying attention in a real way. I know that there has been a lot of 
debate about the cost of some of the things we would like to do, but I 
do not think at a time in particular where we are at war and where 
veterans are coming back with the loss of a limb, with health 
impairments and other kinds of deficiencies that they are now 
confronted with that we can talk about not being able to afford to pay 
in order to make their lives comfortable when they return from war.
  So I am very pleased, and I wish to commend all my colleagues on both 
sides of the aisle for pursuing this bill that will help our veterans.
  Mr. SMITH of New Jersey. Mr. Speaker, I continue to reserve the 
balance of my time.
  Mr. MICHAUD. Mr. Speaker, I yield myself such time as I may consume, 
before yielding to my last speaker, to thank our chairman, the 
gentleman from New Jersey (Mr. Smith); the subcommittee chairman, the 
gentleman from South Carolina (Mr. Brown); and our ranking member, the 
gentleman from Illinois (Mr. Evans), as well as the committee staff on 
both sides of the aisle for all the hard work that they have done in 
the Committee on Veterans' Affairs over the last 2 years.
  Mr. Speaker, I yield the balance of my time to the gentlewoman from 
Texas (Ms. Jackson-Lee).
  Mr. SMITH of New Jersey. Mr. Speaker, I yield 2 minutes to the 
gentlewoman from Texas (Ms. Jackson-Lee) as well.
  The SPEAKER pro tempore (Mr. Simpson). The gentlewoman from Texas 
(Ms. Jackson-Lee) is recognized for 6 minutes.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I think this is a very 
important moment on this floor, and I think that we owe this entire 
committee a debt of gratitude; the chairman, the gentleman from New 
Jersey (Mr. Smith); the ranking member, the gentleman from Illinois 
(Mr. Evans); certainly to the chairman of the subcommittee, the 
gentleman from South Carolina (Mr. Brown). I thank the gentleman from 
Maine (Mr. Michaud) for yielding me this time. And, of course, on the 
health bills that I will speak very briefly to, our ranking member, the 
gentleman from Texas (Mr. Rodriguez) and the gentleman from Connecticut 
(Mr. Simmons).
  Mr. Speaker, let me say why I think it is important that Members owe 
these colleagues a debt of gratitude. There is not one district that 
does not confront the dilemma of a veteran. There is not one district 
that does not owe to those veterans appreciation and applause. Many 
times we find those families and the veterans wondering about the 
concern and the commitment of this body or of their fellow Americans 
for the work they have done.
  In the backdrop of Veterans Day, I want to acknowledge both the 
chairman and the ranking member of the full committee, who are always 
steadfast in reminding us not to forget the veterans. This 
comprehensive Veterans Benefits Improvement Act is a gift long overdue. 
And the reason I say that is because I represent the Veterans Hospital 
in Houston, Texas, and among the issues that we are concerned about, in 
addition to taking care of the health needs of those veterans, there 
are the psychological needs and the employment needs.
  Americans need to know that this legislation is now going to deal 
head-on with the large unemployment that we find among veterans, and 
returning veterans. For a number of years, Mr. Speaker, I have worked 
with an organization called Stand Down, which works with our 
communities' homeless veterans. Whenever I go to Stand Down, the 
veterans simply say, all we want is an opportunity; all we want is to 
be able to be apprentices, as this particular bill is doing; all we 
want is to be able to have full-time VA monthly educational assistance, 
as this bill is doing; all we want is to have competency-based 
apprenticeships; all we want is for our families to have increased 
benefits and to show our pride in our Nation and also to make our 
Nation again proud of us.
  So I want to thank my colleagues for this legislation, and I add my 
appreciation as well as someone who represents the veterans hospitals 
for the legislation that deals with S. 2484, the Department of Veterans 
Affairs Health Care Personnel Enhancement Act, and as well the Veterans 
Health Programs Improvement Act of 2004. What this does is of course 
say to our veterans that we care.
  Let me also say to my colleagues that I spent some time in Iraq just 
a few weeks ago, and visited, after going to Iraq, the Landstuhl 
Hospital in Ramstein, where there were a number of injured soldiers, 
many of them who will be returning veterans. I want my colleagues to 
know that what they wanted most of all was to return to conflict, to 
combat, to be with their comrades as soldiers. But they were grateful, 
as returning veterans, that we would show them that we care, and today 
we are showing them we do so. We could not have done it without the 
leaders of this committee.
  So, Mr. Speaker, I am today thanking them, and as I close, I want to 
add a very special appreciation for a dear friend of this House and a 
dear friend of veterans in the United States of America, and that is 
our friend and colleague, the gentleman from San Antonio, Texas (Mr. 
Rodriguez).
  I cannot say enough, Mr. Speaker, about the compassion of Ciro 
Rodriguez. I cannot say enough about the kindness and the caring 
attitude that he has exhibited to his colleagues and friends on the 
floor of this body. More importantly, I cannot say enough about his 
voice of reason when challenging the system for health care for all 
Americans, but clearly challenging the system for health care for our 
veterans. He demonstrated such a cooperative spirit with his own 
chairman, the gentleman from Connecticut (Mr. Simmons), and I know they 
had a special bond and a special friendship in working together.
  We know that health care for our veterans is an indication to their 
families and an indication to veterans and the enlisted personnel as to 
how much America thanks them and how much America recognizes their 
sacrifice. We could not have done it without the face of Ciro Rodriguez 
going out day after day visiting with his own veterans, speaking across 
the country, speaking as the chairman of the Congressional Hispanic 
Caucus, and recognizing the importance of thanking our veterans in a 
real meaningful way by the legislation he has helped to produce.
  Might I also thank him for his support in providing posthumous 
citizenship to those who lost their lives in Afghanistan and Iraq, to 
those who were not citizens but who came from our immigrant community. 
Ciro, we owe you a debt of gratitude. It is my honor and privilege to 
have served with you. The veterans of America will thank you 
continuously as they rise again to serve their country and in their 
daily lives, and their families owe you also a debt of gratitude. Thank 
you again, my friend. We wish you the very best. We honor you as you 
honor the veterans.
  Mr. Speaker, I thank each and every one of the members of this 
committee for allowing this body to thank the veterans by this 
legislation. I ask my colleagues to support all the legislation on the 
floor for the veterans of America.
  I rise today as a strong supporter of S. 2486, the Veterans' Benefits 
Improvements Act of 2004, which received unanimous approval in the 
Senate and is now before this body for passage. The Veterans' Benefits 
Improvements Act would improve and enhance

[[Page 23753]]

education, housing, employment, medical, and other benefits for 
veterans.
  As a Member of this body I have always been an ardent supporter of 
our Nation's brave veterans and of the idea that they should receive 
the best of care and support that our Nation has to offer. I am 
heartened by this legislation because it takes steps toward improving 
opportunities that veterans can receive as a condition of their 
service.
  I am especially pleased to find provisions in this legislation that 
will increase education opportunities for Armed Service members after 
they leave the Armed Forces. Specifically, the Veterans' Benefits 
Improvements Act increases the voluntary contribution amount that 
active duty members of the Armed Forces may make in order to receive 
increased monthly educational assistance under the Montgomery GI Bill. 
This additional assistance can very well mean the difference between 
whether our veterans will be able to afford an education. Furthermore, 
this legislation excludes veterans' education benefits from the 
determination of eligibility for, or the amount of, Federal education 
grants and loans. This is an important distinction because veterans 
education benefits have been earned through service and should not 
count against any other aid an individual may be able to receive due to 
their level of financial hardship. These provisions together will 
provide more opportunities for our veterans to attend institutions of 
higher learning and obtain high paying career jobs after they leave the 
Armed Forces.
  The Veterans' Benefits Improvements Act also provides important 
housing provisions for our Nation's deserving veterans. This 
legislation calls for increasing the maximum housing loan guarantee 
amount for which veterans are eligible. As well, the legislation gives 
power to the Secretary for permanent authority to guarantee adjustable 
rate mortgages (ARMs) and hybrid ARMs, and to modify interest rates 
applicable to hybrid ARMs. These important housing provisions will make 
it easier and more likely for our veterans to purchase suitable housing 
for themselves and their families.
  While The Veterans' Benefits Improvements Act contains a large number 
of different provisions, this legislation is really about providing our 
veterans with the ability to improve their lives once they leave the 
Armed Forces. These men and women left their civilian lives behind to 
serve our Nation; we owe it to them to allow them to improve their 
lives once they return to civilian status.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield myself such time as I 
may consume to say once again that this is a good bill. As a matter of 
fact, it is a very, very important bill. And I do want to thank my 
friend, the gentleman from Illinois (Mr. Evans), and the gentleman from 
South Carolina (Mr. Brown), our distinguished subcommittee chairman, 
who has done yeoman's work on this, and also the gentleman from Maine 
(Mr. Michaud), who is the ranking member on that subcommittee. This has 
been a true bipartisan product. I think when President Bush signs this 
piece of legislation we can all be very, very proud.
  I also want to join my friend from Texas in thanking the gentleman 
from Texas (Mr. Rodriguez) for his outstanding and exemplary work in 
the Congress for the past 8 years, and he certainly has put veterans 
first. So again I want to thank him for his work as well.
  Mr. REYES. Mr. Speaker, I rise today in support of S. 2486, the 
Veteran's Benefits Improvement Act of 2004. I would like to thank my 
colleagues for bringing it to the floor for a vote.
  As you may know, S. 2486 would expand educational and housing 
benefits to qualified veterans and their dependents. With the rise in 
cost for educational services and home loans, our Nation's veterans are 
required to supplement the high costs through loans that can become 
financially burdensome. With the expansion of these two benefits, we 
can better ensure they are given the opportunity of continuing their 
education and purchasing their own home.
  In addition, I am glad to see the inclusion of important language to 
provide housing and automobile benefits to veterans disabled by VA 
medical treatment or vocational rehabilitation. As you may know, I am a 
sponsor of H.R. 843 which aims to address this same issue by providing 
full service-connected disability to persons injured while under the 
care of the Department of Veterans Affairs. Although this bill does not 
provide full service-connected disability to injured persons, I am 
certainly glad to see this piece of legislation included in the bill.
  I believe this bill will provide them with the resources needed to 
fulfil their dreams and long term goals for education and home 
ownership. In addition, this legislation will solidify the care for our 
veterans welfare and health while under the care of the Department of 
Veterans Affairs.
  Mr. Speaker, I strongly urge my colleagues to support the passage of 
this important bill.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield back the balance of my 
time.
  Mr. MICHAUD. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New Jersey (Mr. Smith) that the House suspend the rules 
and pass the Senate bill, S. 2486.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate bill was passed.
  A motion to reconsider was laid on the table.

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