[Congressional Record (Bound Edition), Volume 162 (2016), Part 2]
[House]
[Pages 1478-1489]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1600
                    AMERICAN HEROES COLA ACT OF 2015

  Mr. ABRAHAM. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 677) to amend title 38, United States Code, to provide for 
annual cost-of-living adjustments to be made automatically by law each 
year in 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, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 677

       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 ``American 
     Heroes COLA Act of 2015''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Expansion of eligibility for medallions.
Sec. 3. Definitions relating to claims for benefits under laws 
              administered by the Secretary of Veterans Affairs.
Sec. 4. Quarterly reports on formal and informal claims for benefits 
              under laws administered by Secretary of Veterans Affairs.
Sec. 5. Expedited payment of survivor's benefits.
Sec. 6. Priority for processing claims of the Department of Veterans 
              Affairs.
Sec. 7. Treatment of medical evidence provided by non-Department of 
              Veterans Affairs medical professionals in support of 
              claims for disability compensation.
Sec. 8. Automatic annual increase in rates of disability compensation 
              and dependency and indemnity compensation.
Sec. 9. Improvement of fiduciaries for veterans.
Sec. 10. Board of Veterans' Appeals video hearings.
Sec. 11. Improvements to authority for performance of medical 
              disabilities examinations by contract physicians.
Sec. 12. Pilot program on fully developed appeals.
Sec. 13. Deadline for certification of appeals forms by regional 
              offices of the Department of Veterans Affairs.
Sec. 14. Evaluation of backlog of disability claims and appeals of 
              claims of Department of Veterans Affairs.
Sec. 15. Methods for validating certain World War II Merchant Mariner 
              service considered to be active service by the Secretary 
              of Veterans Affairs.
Sec. 16. Designation of American World War II Cities.
Sec. 17. Sense of Congress regarding American veterans disabled for 
              life.
Sec. 18. Extension of pilot program on counseling in retreat settings 
              for women veterans newly separated from service in the 
              Armed Forces.

     SEC. 2. EXPANSION OF ELIGIBILITY FOR MEDALLIONS.

       Section 2306(d)(4) of title 38, United States Code, is 
     amended to read as follows:
       ``(4)(A) In lieu of furnishing a headstone or marker under 
     this subsection to a deceased individual described in 
     subparagraph (B), the Secretary may furnish, upon request, a 
     medallion or other device of a design determined by the 
     Secretary to signify the deceased individual's status as a 
     veteran, to be attached to a headstone or marker furnished at 
     private expense.
       ``(B) A deceased individual described in this subsection is 
     an individual who--
       ``(i) served in the Armed Forces on or after April 6, 1917; 
     and
       ``(ii) is eligible for a headstone or marker furnished 
     under paragraph (1) (or would be so eligible but for the date 
     of the death of the individual).''.

     SEC. 3. DEFINITIONS RELATING TO CLAIMS FOR BENEFITS UNDER 
                   LAWS ADMINISTERED BY THE SECRETARY OF VETERANS 
                   AFFAIRS.

       (a) Definitions.--
       (1) In general.--Section 5100 of title 38, United States 
     Code, is amended to read as follows:

     ``Sec. 5100. Definitions

       ``In this chapter:
       ``(1) The term `claimant' means any individual applying 
     for, or submitting a claim for, any benefit under the laws 
     administered by the Secretary.
       ``(2) The term `claim' means a communication in writing 
     requesting a determination of entitlement or evidencing a 
     belief in entitlement to a benefit under the laws 
     administered by the Secretary.
       ``(3) The term `formal claim' means a claim submitted on an 
     application form prescribed by the Secretary.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 51 of such title is further amended by 
     striking the item relating to section 5100 and inserting the 
     following new item:

``5100. Definitions.''.
       (b) Effective Date.--Section 5100 of title 38, United 
     States Code, as amended by subsection (a), shall take effect 
     on the date of the enactment of this Act and shall apply with 
     respect to a claim submitted on or after such date.

     SEC. 4. QUARTERLY REPORTS ON FORMAL AND INFORMAL CLAIMS FOR 
                   BENEFITS UNDER LAWS ADMINISTERED BY SECRETARY 
                   OF VETERANS AFFAIRS.

       (a) Quarterly Reports.--During the five-year period 
     beginning on the date of the enactment of this Act, the 
     Secretary shall submit to the Committees on Veterans' Affairs 
     of the Senate and House of Representatives quarterly reports 
     on formal and informal claims submitted to the Secretary. 
     Each such report shall include, for the three-month period 
     covered by the report--
       (1) the total number of claims submitted to the Secretary;
       (2) the total number of informal claims submitted to the 
     Secretary;
       (3) the total number of formal claims submitted to the 
     Secretary;
       (4) the total number of forms indicating an intent to file 
     a claim for benefits submitted to the Secretary;
       (5) the total number of claims notification letters that 
     included an invitation to the claimant to submit an 
     additional formal claim that was reasonably raised during the 
     adjudication of the claim for which the notification letter 
     is sent;
       (6) of the claimants who received notification letters 
     described in paragraph (5), the total number who submitted a 
     formal claim in response to the invitation included in the 
     letter;
       (7) the total number of electronically filed claims 
     submitted to the Secretary; and
       (8) the total number of fully-developed claims submitted to 
     the Secretary.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Veterans Affairs should develop a designated 
     form for an increase or reopening of a claim that does not 
     require the resubmittal of information previously submitted 
     on a formal claim form.
       (c) Definitions.--In this section:
       (1) The terms ``claim'', ``claimant'', and ``formal claim'' 
     have the meanings given such terms in section 5100 of title 
     38, United States Code, as amended by section 4.
       (2) The term ``informal claim'' means a communication in 
     writing requesting a determination of entitlement or 
     evidencing a belief in entitlement, to a benefit under the 
     laws administered by the Secretary of Veterans Affairs that--
       (A) is submitted in a format other than on an application 
     form prescribed by the Secretary;
       (B) indicates an intent to apply for one or more benefits 
     under the laws administered by the Secretary;

[[Page 1479]]

       (C) identifies the benefit sought;
       (D) is made or submitted by a claimant, his or her duly 
     authorized representative, a Member of Congress, or another 
     person acting on behalf of a claimant who meets the 
     requirements established by the Secretary for such purpose; 
     and
       (E) may include a report of examination or hospitalization, 
     if the report relates to a disability which may establish 
     such an entitlement.
       (3) The term ``reasonably raised'' with respect to a claim 
     means that evidence of an entitlement to a benefit under the 
     laws administered by the Secretary is inferred or logically 
     placed at issue upon a sympathetic reading of another claim 
     and the record developed with respect to that claim.

     SEC. 5. EXPEDITED PAYMENT OF SURVIVOR'S BENEFITS.

       (a) In General.--Section 5101(a)(1) of title 38, United 
     States Code, is amended--
       (1) by striking ``A specific'' and inserting ``(A) Except 
     as provided in subparagraph (B), a specific''; and
       (2) by adding at the end the following new subparagraph:
       ``(B)(i) The Secretary may pay benefits under chapters 13 
     and 15 and sections 2302, 2307, and 5121 of this title to a 
     survivor of a veteran who has not filed a formal claim if the 
     Secretary determines that the record contains sufficient 
     evidence to establish the entitlement of the survivor to such 
     benefits.
       ``(ii) For purposes of this subparagraph and section 5110 
     of this title, the earlier of the following dates shall be 
     treated as the date of the receipt of the survivor's 
     application for benefits described in clause (i):
       ``(I) The date on which the survivor of a veteran (or the 
     representative of such a survivor) notifies the Secretary of 
     the death of the veteran through a death certificate or other 
     relevant medical evidence indicating that the death was due 
     to a service-connected or compensable disability.
       ``(II) The head of any other department or agency of the 
     Federal Government notifies the Secretary of the death of the 
     veteran.
       ``(iii) In notifying the Secretary of the death of a 
     veteran as described in clause (ii)(I), the survivor (or the 
     representative of such a survivor) may submit to the 
     Secretary additional documents relating to such death without 
     being required to file a formal claim.''.
       (b) Report.--
       (1) In general.--Not later than one year after the date of 
     the enactment of this Act, the Secretary of Veterans Affairs 
     shall submit to the Committee on Veterans' Affairs of the 
     Senate and the Committee on Veterans' Affairs of the House of 
     Representatives a report on benefits paid pursuant to covered 
     claims.
       (2) Contents.--The report under paragraph (1) shall include 
     the following:
       (A) The number of covered claims adjudicated during the 
     one-year period preceding the date of the report, 
     disaggregated by the following:
       (i) Claims in which the claimant claimed entitlement to 
     compensation on the basis of the claimant's status as the 
     spouse of a deceased veteran.
       (ii) Claims in which the claimant claimed entitlement to 
     compensation on the basis of the claimant's status as the 
     child of a deceased veteran.
       (iii) Claims in which the claimant claimed entitlement to 
     compensation on the basis of the claimant's status as the 
     parent of a deceased veteran.
       (B) The number of covered claims that were adjudicated 
     during such period and for which compensation was not 
     awarded, disaggregated by clauses (i) through (iii) of 
     subparagraph (A).
       (C) A comparison of the accuracy and timeliness of covered 
     claims adjudicated during such period with non-covered claims 
     filed by survivors of a veteran.
       (D) The findings of the Secretary with respect to 
     adjudicating covered claims.
       (E) Such recommendations as the Secretary may have for 
     legislative or administrative action to improve the 
     adjudication of claims submitted to the Secretary for 
     benefits under chapters 13 and 15 and sections 2302, 2307, 
     and 5121 of title 38, United States Code.
       (3) Covered claim defined.--In this subsection, the term 
     ``covered claim'' means a claim covered by section 
     5101(a)(1)(B) of title 38, United States Code, as added by 
     subsection (a).
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to claims for benefits based on a 
     death occurring on or after the date of the enactment of this 
     Act.

     SEC. 6. PRIORITY FOR PROCESSING CLAIMS OF THE DEPARTMENT OF 
                   VETERANS AFFAIRS.

       (a) In General.--Subchapter I of chapter 51 of title 38, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 5109C. Priority for processing claims

       ``(a) Priority.--In processing claims for compensation 
     under this chapter, the Secretary shall provide the following 
     claimants with priority over other claimants:
       ``(1) Veterans who have attained the age of 70.
       ``(2) Veterans who are terminally ill.
       ``(3) Veterans with life-threatening illnesses.
       ``(4) Homeless veterans (as defined in section 2002 of this 
     title).
       ``(5) Veterans who were awarded the Medal of Honor.
       ``(6) Veterans who are former prisoners of war.
       ``(7) Veterans whose claims are being reviewed again in 
     relation to a previously denied claim relating to military 
     sexual trauma.
       ``(8) Veterans whom the Secretary determines, on a case-by-
     case basis, are seriously or very seriously injured.
       ``(9) Veterans whom the Secretary determines, on a case-by-
     case basis, should be given priority under this section based 
     on an application for good cause established by the 
     Secretary.
       ``(b) Regulations.--The Secretary shall prescribe 
     regulations to carry out subsection (a).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 5109B the following new item:

``5109C. Priority for processing claims.''.

     SEC. 7. TREATMENT OF MEDICAL EVIDENCE PROVIDED BY NON-
                   DEPARTMENT OF VETERANS AFFAIRS MEDICAL 
                   PROFESSIONALS IN SUPPORT OF CLAIMS FOR 
                   DISABILITY COMPENSATION.

       (a) Acceptance of Reports of Private Physician 
     Examinations.--Section 5125 of title 38, United States Code, 
     is amended--
       (1) by striking ``For purposes'' and inserting ``(a) In 
     General.--For purposes''; and
       (2) by adding at the end the following new subsections:
       ``(b) Sufficiency of Evidence.--If a veteran has submitted 
     a medical opinion or report of a medical examination 
     administered by a private physician in support of the 
     veteran's claim, the Secretary may not order a medical 
     examination to be administered by a Department physician 
     unless the Secretary provides the veteran with a thorough 
     explanation of why the medical opinion or report submitted by 
     the veteran was not sufficiently complete and the reason why 
     additional medical evidence is necessary.
       ``(c) Sufficiently Complete Defined.--For purposes of a 
     medical opinion or report described in subsection (a), the 
     term `sufficiently complete' means competent, credible, 
     probative, and containing such information as may be required 
     to make a decision on the claim for which the medical opinion 
     or report is provided.''.
       (b) Application.--The amendment made by subsection (a) 
     shall apply with respect to medical evidence submitted after 
     the date that is one year after the date of the enactment of 
     this Act by veterans who have not submitted any claim for 
     disability compensation to the Secretary of Veterans Affairs 
     before such date.
       (c) Annual Reports.--
       (1) In general.--During the three-year period beginning 
     three years after the date of the enactment of this Act, the 
     Secretary of Veterans Affairs shall submit to the Committees 
     on Veterans' Affairs of the House of Representatives and the 
     Senate an annual report on the implementation of section 
     5125(b) of title 38, United States Code, as added by 
     subsection (a).
       (2) Matters included.--Each report under paragraph (1) 
     shall include, with respect to the year covered by the 
     report, the following:
       (A) The number of veterans who submitted a medical opinion 
     or report of a medical examination administered by a private 
     physician in support of the veteran's claim for disability 
     compensation as described in section 5125(b) of title 38, 
     United States Code, as added by subsection (a).
       (B) Of the number of veterans described in subparagraph 
     (A), the number of veterans whose medical opinion or report 
     of a medical examination administered by a private physician 
     was determined by the Secretary to not be sufficiently 
     complete pursuant to such section 5125(b), including the five 
     most frequent reasons for such a determination.
       (C) A comparison of the approval rate of claims for 
     disability compensation with respect to--
       (i) veterans who submitted medical opinions or reports of a 
     medical examination administered by a private physician in 
     support of the veteran's claim; and
       (ii)(I) veterans who did submit such opinions or reports 
     but such opinions or reports were determined by the Secretary 
     to not be sufficiently complete pursuant to such section 
     5125(b); and
       (II) veterans who did not submit such opinions or reports.

     SEC. 8. AUTOMATIC ANNUAL INCREASE IN RATES OF DISABILITY 
                   COMPENSATION AND DEPENDENCY AND INDEMNITY 
                   COMPENSATION.

       (a) Indexing to Social Security Increases.--Section 5312 of 
     title 38, United States Code, is amended by adding at the end 
     the following new subsection:
       ``(d)(1) During the nine-year period beginning on December 
     1, 2016, whenever there is an increase in benefit amounts 
     payable under title II of the Social Security Act (42 U.S.C. 
     401 et seq.) as a result of a determination made under 
     section 215(i) of such Act (42 U.S.C. 415(i)), the Secretary 
     shall, effective on the date of such increase in benefit

[[Page 1480]]

     amounts, increase the dollar amounts in effect for the 
     payment of disability compensation and dependency and 
     indemnity compensation by the Secretary, as specified in 
     paragraph (2), as such amounts were in effect immediately 
     before the date of such increase in benefit amounts payable 
     under title II of the Social Security Act, by the same 
     percentage as the percentage by which such benefit amounts 
     are increased.
       ``(2) The dollar amounts to be increased pursuant to 
     paragraph (1) are the following:
       ``(A) Wartime disability compensation.--Each of the dollar 
     amounts in effect under section 1114 of this title.
       ``(B) Additional compensation for dependents.--Each of the 
     dollar amounts in effect under section 1115(1) of this title.
       ``(C) Clothing allowance.--The dollar amount in effect 
     under section 1162 of this title.
       ``(D) Dependency and indemnity compensation to surviving 
     spouse.--Each of the dollar amounts in effect under 
     subsections (a) through (d) of section 1311 of such title.
       ``(E) Dependency and indemnity compensation to children.--
     Each of the dollar amounts in effect under sections 1313(a) 
     and 1314 of such title.
       ``(3) Whenever there is an increase under paragraph (1) in 
     amounts in effect for the payment of disability compensation 
     and dependency and indemnity compensation, the Secretary 
     shall publish such amounts, as increased pursuant to such 
     paragraph, in the Federal Register at the same time as the 
     material required by section 215(i)(2)(D) of the Social 
     Security Act (42 U.S.C. 415(i)(2)(D)) is published by reason 
     of a determination under section 215(i) of such Act (42 
     U.S.C. 415(i)).
       ``(4) Each dollar amount increased under paragraph (1), if 
     not a whole dollar amount, shall be rounded to the next lower 
     whole dollar amount.
       ``(5) The Secretary of Veterans Affairs may adjust 
     administratively, consistent with the increases made under 
     subsection (a), the rates of disability compensation payable 
     to persons under section 10 of Public Law 85-857 (72 Stat. 
     1263) who have not received compensation under chapter 11 of 
     this title.''.
       (b) Effective Date.--Subsection (d) of section 5312 of 
     title 38, United States Code, as added by subsection (a) of 
     this section, shall take effect on December 1, 2016.

     SEC. 9. IMPROVEMENT OF FIDUCIARIES FOR VETERANS.

       (a) Appointment and Supervision.--
       (1) Section 5502 of title 38, United States Code, is 
     amended to read as follows:

     ``Sec. 5502. Appointment of fiduciaries

       ``(a) Appointment.--Where it appears to the Secretary that 
     the interest of the beneficiary would be served thereby, 
     payment of benefits under any law administered by the 
     Secretary may be made directly to the beneficiary or to a 
     relative or some other fiduciary for the use and benefit of 
     the beneficiary, regardless of any legal disability on the 
     part of the beneficiary.
       ``(b) Appeals.--(1) If the Secretary determines a 
     beneficiary to be mentally incompetent for purposes of 
     appointing a fiduciary under this chapter, the Secretary 
     shall provide such beneficiary with a written statement 
     detailing the reasons for such determination.
       ``(2) A beneficiary whom the Secretary has determined to be 
     mentally incompetent for purposes of appointing a fiduciary 
     under this chapter may appeal such determination.
       ``(c) Modification.--(1) A beneficiary for whom the 
     Secretary appoints a fiduciary under this chapter may, at any 
     time, request the Secretary to--
       ``(A) remove the fiduciary so appointed; and
       ``(B) have a new fiduciary appointed.
       ``(2) The Secretary shall comply with a request under 
     paragraph (1) if the Secretary determines that the request is 
     made in good faith and--
       ``(A) the fiduciary requested to be removed receives a fee 
     from the beneficiary and a suitable volunteer fiduciary is 
     available to assist the beneficiary; or
       ``(B) the beneficiary provides credible information that 
     the fiduciary requested to be removed is--
       ``(i) not acting in the interest of the beneficiary; or
       ``(ii) unable to effectively serve the beneficiary because 
     of an irreconcilable personality conflict or disagreement.
       ``(3) The Secretary shall ensure that any removal or new 
     appointment of a fiduciary under paragraph (1) does not delay 
     or interrupt the beneficiary's receipt of benefits 
     administered by the Secretary.
       ``(d) Independence.--A fiduciary appointed by the Secretary 
     shall operate independently of the Department to determine 
     the actions that are in the interest of the beneficiary.
       ``(e) Predesignation.--A veteran may predesignate a 
     fiduciary by--
       ``(1) submitting written notice to the Secretary of the 
     predesignated fiduciary; or
       ``(2) submitting a form provided by the Secretary for such 
     purpose.
       ``(f) Appointment of Non-Predesignated Fiduciary.--If a 
     beneficiary designates an individual to serve as a fiduciary 
     under subsection (e) and the Secretary appoints an individual 
     not so designated as the fiduciary for such beneficiary, the 
     Secretary shall notify such beneficiary of--
       ``(1) the reason why such designated individual was not 
     appointed; and
       ``(2) the ability of the beneficiary to modify the 
     appointed fiduciary under subsection (c).
       ``(g) Priority of Appointment.--In appointing a fiduciary 
     under this chapter, if a beneficiary does not designate a 
     fiduciary pursuant to subsection (e), to the extent possible 
     the Secretary shall appoint a person who is--
       ``(1) a relative of the beneficiary;
       ``(2) appointed as guardian of the beneficiary by a court 
     of competent jurisdiction; or
       ``(3) authorized to act on behalf of the beneficiary under 
     a durable power of attorney.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 55 of title 38, United States Code, is 
     amended by striking the item relating to section 5502 and 
     inserting the following:

``5502. Appointment of fiduciaries.''.

       (b) Supervision.--
       (1) In general.--Chapter 55 of title 38, United States 
     Code, is amended by inserting after section 5502, as amended 
     by subsection (a)(1), the following new section:

     ``Sec. 5502A. Supervision of fiduciaries

       ``(a) Commission.--(1)(A) In a case in which the Secretary 
     determines that a commission is necessary in order to obtain 
     the services of a fiduciary in the best interests of a 
     beneficiary, the Secretary may authorize a fiduciary 
     appointed by the Secretary to obtain from the monthly 
     benefits provided to the beneficiary a reasonable commission 
     for fiduciary services rendered, but the commission for any 
     month may not exceed the lesser of the following amounts:
       ``(i) The amount that equals three percent of the monthly 
     monetary benefits under laws administered by the Secretary 
     paid on behalf of the beneficiary to the fiduciary.
       ``(ii) $35.
       ``(B) A commission paid under this paragraph may not be 
     derived from any award to a beneficiary regarding back pay or 
     retroactive benefits payments.
       ``(C) A commission may not be authorized for a fiduciary 
     who receives any other form of remuneration or payment in 
     connection with rendering fiduciary services for benefits 
     under this title on behalf of the beneficiary.
       ``(D) In accordance with section 6106 of this title, a 
     commission may not be paid to a fiduciary if the Secretary 
     determines that the fiduciary misused any benefit payments of 
     a beneficiary.
       ``(E) If the Secretary determines that the fiduciary has 
     misused any benefit or payments of a beneficiary, the 
     Secretary may revoke the fiduciary status of the fiduciary.
       ``(2) Where, in the opinion of the Secretary, any fiduciary 
     receiving funds on behalf of a Department beneficiary is 
     acting in such a number of cases as to make it impracticable 
     to conserve properly the estates or to supervise the persons 
     of the beneficiaries, the Secretary may refuse to make future 
     payments in such cases as the Secretary may deem proper.
       ``(b) Court.--Whenever it appears that any fiduciary, in 
     the opinion of the Secretary, is not properly executing or 
     has not properly executed the duties of the trust of such 
     fiduciary or has collected or paid, or is attempting to 
     collect or pay, fees, commissions, or allowances that are 
     inequitable or in excess of those allowed by law for the 
     duties performed or expenses incurred, or has failed to make 
     such payments as may be necessary for the benefit of the ward 
     or the dependents of the ward, then the Secretary may appear, 
     by the Secretary's authorized attorney, in the court which 
     has appointed such fiduciary, or in any court having 
     original, concurrent, or appellate jurisdiction over said 
     cause, and make proper presentation of such matters. The 
     Secretary, in the Secretary's discretion, may suspend 
     payments to any such fiduciary who shall neglect or refuse, 
     after reasonable notice, to render an account to the 
     Secretary from time to time showing the application of such 
     payments for the benefit of such incompetent or minor 
     beneficiary, or who shall neglect or refuse to administer the 
     estate according to law. The Secretary may require the 
     fiduciary, as part of such account, to disclose any 
     additional financial information concerning the beneficiary 
     (except for information that is not available to the 
     fiduciary). The Secretary may appear or intervene by the 
     Secretary's duly authorized attorney in any court as an 
     interested party in any litigation instituted by the 
     Secretary or otherwise, directly affecting money paid to such 
     fiduciary under this section.
       ``(c) Payment of Certain Expenses.--Authority is hereby 
     granted for the payment of any court or other expenses 
     incident to any investigation or court proceeding for the 
     appointment of any fiduciary or other person for the purpose 
     of payment of benefits payable under laws administered by the 
     Secretary or the removal of such fiduciary and appointment of 
     another, and of expenses in connection with the 
     administration of such benefits by such fiduciaries, or in 
     connection with any other court proceeding hereby authorized, 
     when such payment is authorized by the Secretary.
       ``(d) Temporary Payment of Benefits.--All or any part of 
     any benefits the payment

[[Page 1481]]

     of which is suspended or withheld under this section may, in 
     the discretion of the Secretary, be paid temporarily to the 
     person having custody and control of the incompetent or minor 
     beneficiary, to be used solely for the benefit of such 
     beneficiary, or, in the case of an incompetent veteran, may 
     be apportioned to the dependent or dependents, if any, of 
     such veteran. Any part not so paid and any funds of a 
     mentally incompetent or insane veteran not paid to the chief 
     officer of the institution in which such veteran is a patient 
     nor apportioned to the veteran's dependent or dependents may 
     be ordered held in the Treasury to the credit of such 
     beneficiary. All funds so held shall be disbursed under the 
     order and in the discretion of the Secretary for the benefit 
     of such beneficiary or the beneficiary's dependents. Any 
     balance remaining in such fund to the credit of any 
     beneficiary may be paid to the beneficiary if the beneficiary 
     recovers and is found competent, or if a minor, attains 
     majority, or otherwise to the beneficiary's fiduciary, or, in 
     the event of the beneficiary's death, to the beneficiary's 
     personal representative, except as otherwise provided by law; 
     however, payment will not be made to the beneficiary's 
     personal representative if, under the law of the 
     beneficiary's last legal residence, the beneficiary's estate 
     would escheat to the State. In the event of the death of a 
     mentally incompetent or insane veteran, all gratuitous 
     benefits under laws administered by the Secretary deposited 
     before or after August 7, 1959, in the personal funds of 
     patient's trust fund on account of such veteran shall not be 
     paid to the personal representative of such veteran, but 
     shall be paid to the following persons living at the time of 
     settlement, and in the order named: The surviving spouse, the 
     children (without regard to age or marital status) in equal 
     parts, and the dependent parents of such veteran, in equal 
     parts. If any balance remains, such balance shall be 
     deposited to the credit of the applicable current 
     appropriation; except that there may be paid only so much of 
     such balance as may be necessary to reimburse a person (other 
     than a political subdivision of the United States) who bore 
     the expenses of last sickness or burial of the veteran for 
     such expenses. No payment shall be made under the two 
     preceding sentences of this subsection unless claim therefor 
     is filed with the Secretary within five years after the death 
     of the veteran, except that, if any person so entitled under 
     said two sentences is under legal disability at the time of 
     death of the veteran, such five-year period of limitation 
     shall run from the termination or removal of the legal 
     disability.
       ``(e) Escheatment.--Any funds in the hands of a fiduciary 
     appointed by a State court or the Secretary derived from 
     benefits payable under laws administered by the Secretary, 
     which under the law of the State wherein the beneficiary had 
     last legal residence would escheat to the State, shall 
     escheat to the United States and shall be returned by such 
     fiduciary, or by the personal representative of the deceased 
     beneficiary, less legal expenses of any administration 
     necessary to determine that an escheat is in order, to the 
     Department, and shall be deposited to the credit of the 
     applicable revolving fund, trust fund, or appropriation.
       ``(f) Assistance.--The Secretary shall provide to a 
     fiduciary appointed under section 5502 of this title 
     materials and tools to assist the fiduciary in carrying out 
     the responsibilities of the fiduciary under this chapter, 
     including--
       ``(1) handbooks, brochures, or other written material that 
     explain the responsibilities of a fiduciary under this 
     chapter;
       ``(2) tools located on an Internet website, including forms 
     to submit to the Secretary required information; and
       ``(3) assistance provided by telephone.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 55 of title 38, United States Code, is 
     amended by inserting after the item relating to section 5502 
     the following new item:

``5502A. Supervision of fiduciaries.''.
       (c) Definition of Fiduciary.--Section 5506 of title 38, 
     United States Code, is amended--
       (1) by striking ``For purposes'' and inserting ``(a) For 
     purposes''; and
       (2) by adding at the end the following new subsection:
       ``(b)(1) For purposes of subsection (a), the term `person' 
     includes any--
       ``(A) State or local government agency whose mission is to 
     carry out income maintenance, social service, or health care-
     related activities;
       ``(B) any State or local government agency with fiduciary 
     responsibilities; or
       ``(C) any nonprofit social service agency that the 
     Secretary determines--
       ``(i) regularly provides services as a fiduciary 
     concurrently to five or more individuals; and
       ``(ii) is not a creditor of any such individual.
       ``(2) The Secretary shall maintain a list of State or local 
     agencies and nonprofit social service agencies under 
     paragraph (1) that are qualified to act as a fiduciary under 
     this chapter. In maintaining such list, the Secretary may 
     consult the lists maintained under section 807(h) of the 
     Social Security Act (42 U.S.C. 1007(h)).''.
       (d) Qualifications.--Section 5507 of title 38, United 
     States Code, is amended to read as follows:

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

       ``(a) Investigation.--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 to be conducted in advance of such certification 
     and in accordance with subsection (b);
       ``(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);
       ``(3) adequate evidence that the person to serve as 
     fiduciary protects the private information of a beneficiary 
     in accordance with subsection (d)(1); and
       ``(4) the furnishing of any bond that may be required by 
     the Secretary in accordance with subsection (f).
       ``(b) Elements of Investigation.--(1) In conducting an 
     inquiry or investigation of a proposed fiduciary under 
     subsection (a)(1), the Secretary shall conduct--
       ``(A) a face-to-face interview with the proposed fiduciary 
     by not later than 30 days after the date on which such 
     inquiry or investigation begins; and
       ``(B) a background check of the proposed fiduciary to--
       ``(i) in accordance with paragraph (2), determine whether 
     the proposed fiduciary has been convicted of a crime; and
       ``(ii) determine whether the proposed fiduciary will serve 
     the best interest of the beneficiary, including by conducting 
     a credit check of the proposed fiduciary and checking the 
     records under paragraph (5).
       ``(2) The Secretary shall request information concerning 
     whether that person has been convicted of any offense under 
     Federal or State law. 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.
       ``(3) The Secretary shall conduct the background check 
     described in paragraph (1)(B)--
       ``(A) each time a person is proposed to be a fiduciary, 
     regardless of whether the person is serving or has served as 
     a fiduciary; and
       ``(B) at no expense to the beneficiary.
       ``(4) Each proposed fiduciary shall disclose to the 
     Secretary the number of beneficiaries that the fiduciary acts 
     on behalf of.
       ``(5) The Secretary shall maintain records of any person 
     who has--
       ``(A) previously served as a fiduciary; and
       ``(B) had such fiduciary status revoked by the Secretary.
       ``(6)(A) If a fiduciary appointed by the Secretary is 
     convicted of a crime described in subparagraph (B), the 
     Secretary shall notify the beneficiary of such conviction by 
     not later than 14 days after the date on which the Secretary 
     learns of such conviction.
       ``(B) A crime described in this subparagraph is a crime--
       ``(i) for which the fiduciary is convicted while serving as 
     a fiduciary for any person;
       ``(ii) that is not included in a report submitted by the 
     fiduciary under section 5509(a) of this title; and
       ``(iii) that the Secretary determines could affect the 
     ability of the fiduciary to act on behalf of the beneficiary.
       ``(c) Investigation of Certain Persons.--(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 giving 
     priority to conducting such inquiry or investigation. 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;
       ``(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; or
       ``(E) a person who is authorized to act on behalf of the 
     beneficiary under a durable power of attorney.
       ``(d) Protection of Private Information.--(1) A fiduciary 
     shall take all reasonable precautions to--
       ``(A) protect the private information of a beneficiary, 
     including personally identifiable information; and
       ``(B) securely conducts financial transactions.
       ``(2) A fiduciary shall notify the Secretary of any action 
     of the fiduciary that compromises or potentially compromises 
     the private information of a beneficiary.
       ``(e) Potential Misuse of Funds.--(1) If the Secretary has 
     reason to believe that a fiduciary may be misusing all or 
     part of the benefit of a beneficiary, the Secretary shall--

[[Page 1482]]

       ``(A) conduct a thorough investigation to determine the 
     veracity of such belief; and
       ``(B) if such veracity is established, transmit to the 
     officials described in paragraph (2) a report of such 
     investigation.
       ``(2) The officials described in this paragraph are the 
     following:
       ``(A) The Attorney General.
       ``(B) Each head of a Federal department or agency that pays 
     to a fiduciary or other person benefits under any law 
     administered by such department of agency for the use and 
     benefit of a minor, incompetent, or other beneficiary.
       ``(f) Bond.--In determining whether a proposed fiduciary is 
     required to furnish a bond under subsection (a)(4), the 
     Secretary shall consider--
       ``(1) the existence of any familial or other personal 
     relationship between the proposed fiduciary and the 
     beneficiary; and
       ``(2) the care the proposed fiduciary has taken to protect 
     the interests of the beneficiary.
       ``(g) List of Fiduciaries.--Each regional office of the 
     Veterans Benefits Administration shall maintain a list of the 
     following:
       ``(1) The name and contact information of each fiduciary, 
     including address, telephone number, and email address.
       ``(2) With respect to each fiduciary described in paragraph 
     (1)--
       ``(A) the date of the most recent background check and 
     credit check performed by the Secretary under this section;
       ``(B) the date that any bond was paid under this section;
       ``(C) the name, address, and telephone number of each 
     beneficiary the fiduciary acts on behalf of; and
       ``(D) the amount that the fiduciary controls with respect 
     to each beneficiary described in subparagraph (C).''.
       (e) Annual Receipt of Payments.--
       (1) In general.--Section 5509 of title 38, United States 
     Code, is amended--
       (A) in subsection (a)--
       (i) by striking ``may require a fiduciary to file a'' and 
     inserting ``shall require a fiduciary to file an annual''; 
     and
       (ii) by adding at the end the following new sentence: ``The 
     Secretary shall transmit such annual report or accounting to 
     the beneficiary and any legal guardian of such 
     beneficiary.'';
       (B) by adding at the end the following new subsections:
       ``(c) Matters Included.--Except as provided by subsection 
     (f), an annual report or accounting under subsection (a) 
     shall include the following:
       ``(1) For each beneficiary that a fiduciary acts on behalf 
     of--
       ``(A) the amount of the benefits of the beneficiary 
     provided under any law administered by the Secretary accrued 
     during the year, the amount spent, and the amount remaining; 
     and
       ``(B) if the fiduciary serves the beneficiary with respect 
     to benefits not administered by the Secretary, an accounting 
     of all sources of benefits or other income the fiduciary 
     oversees for the beneficiary.
       ``(2) A list of events that occurred during the year 
     covered by the report that could affect the ability of the 
     fiduciary to act on behalf of the beneficiary, including--
       ``(A) the fiduciary being convicted of any crime;
       ``(B) the fiduciary declaring bankruptcy; and
       ``(C) any judgments entered against the fiduciary.
       ``(d) Random Audits.--The Secretary shall annually conduct 
     random audits of fiduciaries who receive a commission 
     pursuant to subsection 5502A(a)(1) of this title.
       ``(e) Status of Fiduciary.--If a fiduciary includes in the 
     annual report events described in subsection (c)(2), the 
     Secretary may take appropriate action to adjust the status of 
     the fiduciary as the Secretary determines appropriate, 
     including by revoking the fiduciary status of the fiduciary.
       ``(f) Caregivers and Certain Other Fiduciaries.--(1)(A) In 
     carrying out this section, the Secretary shall ensure that a 
     caregiver fiduciary is required only to file an annual report 
     or accounting under subsection (a) with respect to the amount 
     of the benefits of the beneficiary provided under any law 
     administered by the Secretary--
       ``(i) spent on--
       ``(I) food and housing for the beneficiary; and
       ``(II) clothing, health-related expenses, recreation, and 
     other personal items for the beneficiary; and
       ``(ii) saved for the beneficiary.
       ``(B) The Secretary shall coordinate with the Under 
     Secretary for Benefits and the Under Secretary for Health 
     to--
       ``(i) minimize the frequency with which employees of the 
     Department visit the home of a caregiver fiduciary and 
     beneficiary; and
       ``(ii) limit the extent of supervision by such Under 
     Secretaries with respect to such a fiduciary and beneficiary.
       ``(C) In this paragraph, the term `caregiver fiduciary' 
     means a fiduciary who--
       ``(i) in addition to acting as a fiduciary for a 
     beneficiary, is approved by the Secretary to be a provider of 
     personal care services for the beneficiary under paragraph 
     (3)(A)(i) of section 1720G(a) of this title;
       ``(ii) in carrying out such care services to such 
     beneficiary, has undergone not less than four home visits 
     under paragraph (9)(A) of such section; and
       ``(iii) has not been required by the Secretary to take 
     corrective action pursuant to paragraph (9)(C) of such 
     section.
       ``(2) In carrying out this section, the Secretary may 
     adjust the matters required under an annual report or 
     accounting under subsection (a) with respect to a fiduciary 
     whom the Secretary determines to have effectively protected 
     the interests of the beneficiary over a sustained period.''; 
     and
       (C) by striking the section heading and inserting the 
     following: ``Annual reports and accountings of fiduciaries''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 55 of title 38, United States Code, is 
     amended by striking the item relating to section 5509 and 
     inserting the following new item:

``5509. Annual reports and accountings of fiduciaries.''.
       (f) Repayment of Misused Benefits.--Section 6107(a)(2)(C) 
     of title 38, United States Code, is amended by inserting 
     before the period the following: ``, including by the 
     Secretary not acting in accordance with section 5507 of this 
     title''.
       (g) Annual Reports.--Section 5510 of title 38, United 
     States Code, is amended by striking ``The Secretary shall 
     include in the Annual Benefits Report of the Veterans 
     Benefits Administration or the Secretary's Annual Performance 
     and Accountability Report'' and inserting ``Not later than 
     July 1 of each year, the Secretary shall submit to the 
     Committees on Veterans' Affairs of the House of 
     Representatives and the Senate a separate report 
     containing''.
       (h) Report.--Not later than two years after the date of the 
     enactment of this Act, the Secretary of Veterans Affairs 
     shall submit to the Committee on Veterans' Affairs of the 
     Senate and the Committee on Veterans' Affairs of the House of 
     Representatives a comprehensive report on the implementation 
     of the amendments made by this Act, including--
       (1) detailed information on the establishment of new 
     policies and procedures pursuant to such amendments and 
     training provided on such policies and procedures; and
       (2) a discussion of whether the Secretary should provide 
     fiduciaries with standardized financial software to simplify 
     reporting requirements.
       (i) Effective Date.--The amendments made by this section 
     shall take effect on the date that is one year after the date 
     of the enactment of this Act.

     SEC. 10. BOARD OF VETERANS' APPEALS VIDEO HEARINGS.

       Section 7107 of title 38, United States Code, is amended--
       (1) in subsection (d), by amending paragraph (1) to read as 
     follows:
       ``(1)(A) Upon request for a hearing, the Board shall 
     determine, for purposes of scheduling the hearing for the 
     earliest possible date, whether a hearing before the Board 
     will be held at its principal location or at a facility of 
     the Department or other appropriate Federal facility located 
     within the area served by a regional office of the 
     Department. The Board shall also determine whether to provide 
     a hearing through the use of the facilities and equipment 
     described in subsection (e)(1) or by the appellant personally 
     appearing before a Board member or panel.
       ``(B) The Board shall notify the appellant of the 
     determinations of the location and type of hearing made under 
     subparagraph (A). Upon notification, the appellant may 
     request a different location or type of hearing as described 
     in such subparagraph. If so requested, the Board shall grant 
     such request and ensure that the hearing is scheduled at the 
     earliest possible date without any undue delay or other 
     prejudice to the appellant.''; and
       (2) in subsection (e), by amending paragraph (2) to read as 
     follows:
       ``(2) Any hearing provided through the use of the 
     facilities and equipment described in paragraph (1) shall be 
     conducted in the same manner as, and shall be considered the 
     equivalent of, a personal hearing.''.

     SEC. 11. IMPROVEMENTS TO AUTHORITY FOR PERFORMANCE OF MEDICAL 
                   DISABILITIES EXAMINATIONS BY CONTRACT 
                   PHYSICIANS.

       (a) Extension of Temporary Authority.--Subsection (c) of 
     section 704 of the Veterans Benefits Act of 2003 (38 U.S.C. 
     5101 note) is amended by striking ``December 31, 2015'' and 
     inserting ``December 31, 2017''.
       (b) Licensure of Contract Physicians.--
       (1) Temporary authority.--Such section 704 is further 
     amended--
       (A) by redesignating subsection (d) as subsection (e); and
       (B) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Licensure of Contract Physicians.--
       ``(1) In general.--Notwithstanding any law regarding the 
     licensure of physicians, a physician described in paragraph 
     (2) may conduct an examination pursuant to a contract entered 
     into under subsection (b) at any location in any State, the 
     District of Columbia, or a Commonwealth, territory, or 
     possession of the United States, so long as the examination 
     is within the scope of the authorized duties under such 
     contract.
       ``(2) Physician described.--A physician described in this 
     paragraph is a physician who--

[[Page 1483]]

       ``(A) has a current unrestricted license to practice the 
     health care profession of the physician;
       ``(B) is not barred from practicing such health care 
     profession in any State, the District of Columbia, or a 
     Commonwealth, territory, or possession of the United States; 
     and
       ``(C) is performing authorized duties for the Department of 
     Veterans Affairs pursuant to a contract entered into under 
     subsection (b).''.
       (2) Pilot program.--Section 504 of the Veterans' Benefits 
     Improvement Act of 1996 (38 U.S.C. 5101 note) is amended--
       (A) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (B) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Licensure of Contract Physicians.--
       ``(1) In general.--Notwithstanding any law regarding the 
     licensure of physicians, a physician described in paragraph 
     (2) may conduct an examination pursuant to a contract entered 
     into under subsection (a) at any location in any State, the 
     District of Columbia, or a Commonwealth, territory, or 
     possession of the United States, so long as the examination 
     is within the scope of the authorized duties under such 
     contract.
       ``(2) Physician described.--A physician described in this 
     paragraph is a physician who--
       ``(A) has a current unrestricted license to practice the 
     health care profession of the physician;
       ``(B) is not barred from practicing such health care 
     profession in any State, the District of Columbia, or a 
     Commonwealth, territory, or possession of the United States; 
     and
       ``(C) is performing authorized duties for the Department of 
     Veterans Affairs pursuant to a contract entered into under 
     subsection (a).''.

     SEC. 12. PILOT PROGRAM ON FULLY DEVELOPED APPEALS.

       (a) In General.--The Secretary of Veterans Affairs shall 
     carry out a pilot program to provide the option of an 
     alternative appeals process that shall more quickly determine 
     such appeals in accordance with this section.
       (b) Election.--
       (1) Filing.--In accordance with paragraph (2), a claimant 
     may elect to file a fully developed appeal under the pilot 
     program under subsection (a) by filing with the Secretary the 
     following:
       (A) The notice of disagreement under chapter 71 of title 
     38, United States Code, along with the written election of 
     the claimant to have the appeal determined under the pilot 
     program.
       (B) All evidence that the claimant believes is needed for 
     the appeal as of the date of the filing.
       (C) A statement of the argument in support of the claim, if 
     any.
       (2) Timing.--A claimant shall make an election under 
     paragraph (1) as part of the notice of disagreement filed by 
     the claimant in accordance with paragraph (1)(A).
       (3) Reversion.--
       (A) At any time, a claimant who makes an election under 
     paragraph (1) may elect to revert to the standard appeals 
     process. Such a reversion shall be final.
       (B) A claimant described in subparagraph (A), or a claimant 
     who makes an election under paragraph (1) but is later 
     determined to be ineligible for the pilot program under 
     subsection (a), shall revert to the standard appeals process 
     without any penalty to the claimant other than the loss of 
     the docket number associated with the fully developed appeal.
       (4) Outreach.--In providing claimants with notices of the 
     determination of a claim during the period in which the pilot 
     program under subsection (a) is carried out, the Secretary 
     shall conduct outreach as follows:
       (A) The Secretary shall provide to the claimant (and to the 
     representative of record of the claimant, if any) information 
     regarding--
       (i) the pilot program, including the advantages and 
     disadvantages of the program;
       (ii) how to make an election under paragraph (1);
       (iii) the limitation on the use of new evidence described 
     in paragraph (3) of subsection (c) and the development of 
     information under paragraph (4) of such subsection; and
       (iv) the ability of the claimant to seek advice and 
     education regarding such process from veterans service 
     organizations, attorneys, and claims agents recognized under 
     chapter 59 of title 38, United States Code.
       (B) The Secretary shall collaborate, partner with, and give 
     weight to the advice of the three veterans service 
     organizations with the most members to publish on the 
     Internet website of the Department of Veterans Affairs an 
     online tutorial explaining the advantages and disadvantages 
     of the pilot program.
       (c) Treatment by Department and Board.--
       (1) Process.--Upon the election of a claimant to file a 
     fully developed appeal pursuant to subsection (b)(1), the 
     Secretary shall--
       (A) not provide the claimant with a statement of the case 
     nor require the claimant to file a substantive appeal; and
       (B) transfer jurisdiction over the fully developed appeal 
     directly to the Board of Veterans' Appeals.
       (2) Docket.--
       (A) The Board of Veterans' Appeals shall--
       (i) maintain fully developed appeals on a separate docket 
     than standard appeals;
       (ii) decide fully developed appeals in the order that the 
     fully developed appeals are received on the fully developed 
     appeal docket;
       (iii) except as provided by subparagraph (B), decide not 
     more than one fully developed appeal for each four standard 
     appeals decided; and
       (iv) to the extent practicable, decide each fully developed 
     appeal by the date that is one year following the date on 
     which the claimant files the notice of disagreement.
       (B) Beginning one year after the date on which the pilot 
     program under subsection (a) commences, the Board may adjust 
     the number of standard appeals decided for each fully 
     developed appeal under subparagraph (A)(iii) if the Board 
     determines that such adjustment is fair for both standard 
     appeals and fully developed appeals.
       (3) Limitation on use of new evidence.--
       (A) Except as provided by subparagraphs (B) and (C)--
       (i) a claimant may not submit or identify to the Board of 
     Veterans' Appeals any new evidence relating to a fully 
     developed appeal after filing such appeal unless the claimant 
     reverts to the standard appeals process pursuant to 
     subsection (b)(3); and
       (ii) if a claimant submits or identifies any such new 
     evidence, such submission or identification shall be deemed 
     to be an election to make such a reversion pursuant to 
     subsection (b)(3).
       (B) Subparagraph (A) shall not apply to evidence developed 
     pursuant to paragraphs (4) and (5). The Board shall consider 
     such evidence in the first instance without consideration by 
     the Veterans Benefits Administration.
       (C) The representative of record of a claimant for appeals 
     purposes, if any, shall be provided an opportunity to review 
     the fully developed appeal of the claimant and submit any 
     additional arguments or evidence that the representative 
     determines necessary during a period specified by the Board 
     for purposes of this subparagraph.
       (4) Prohibition on remand for additional development.--If 
     the Board of Veterans' Appeals determines that a fully 
     developed appeal requires Federal records, independent 
     medical opinions, or new medical examinations, the Board 
     shall--
       (A) in accordance with paragraph (5), take such actions as 
     may be necessary to develop such records, opinions, or 
     examinations in accordance with section 5103A of title 38, 
     United States Code;
       (B) retain jurisdiction of the fully developed appeal 
     without requiring a determination by the Veterans Benefits 
     Administration based on such records, opinions, or 
     examinations;
       (C) ensure the claimant, and the representative of record 
     of a claimant, if any, receives a copy of such records, 
     opinions, or examinations; and
       (D) provide the claimant a period of 90 days after the date 
     of mailing such records, opinions, or examinations during 
     which the claimant may provide the Board any additional 
     evidence without requiring the claimant to make a reversion 
     pursuant to subsection (b)(3).
       (5) Development unit.--
       (A) The Board of Veterans' Appeals shall establish an 
     office to develop Federal records, independent medical 
     opinions, and new medical examinations pursuant to paragraph 
     (4)(A) that the Board determines necessary to decide a fully 
     developed appeal.
       (B) The Secretary shall--
       (i) ensure that the Veterans Benefits Administration 
     cooperates with the Board of Veterans' Appeals in carrying 
     out subparagraph (A); and
       (ii) transfer employees of the Veterans Benefits 
     Administration who, prior to the enactment of this Act, were 
     responsible for processing claims remanded by the Board of 
     Veterans' Appeals to positions within the office of the Board 
     established under subparagraph (A) in a number the Secretary 
     determines sufficient to carry out such subparagraph.
       (6) Hearings.--Notwithstanding section 7107 of title 38, 
     United States Code, the Secretary may not provide hearings 
     with respect to fully developed appeals. If a claimant 
     requests to hold a hearing pursuant to such section 7107, 
     such request shall be deemed to be an election to revert to 
     the standard appeals process pursuant to subsection (b)(3).
       (d) Duration; Application.--The Secretary shall carry out 
     the pilot program under subsection (a) for a five-year period 
     beginning one year after the date of the enactment of this 
     Act. This section shall apply only to fully developed appeals 
     that are filed during such period.
       (e) Reports.--During each year in which the pilot program 
     under subsection (a) is carried out, the Secretary shall 
     submit to the Committees on Veterans' Affairs of the House of 
     Representatives and the Senate a report on the pilot program. 
     The first such report shall be submitted by not later than 
     180 days after the date on which the pilot program commences. 
     Each report shall include the following:
       (1) For the period covered by the report--

[[Page 1484]]

       (A) the number of claimants who filed a fully developed 
     appeal under the pilot program;
       (B) the average processing time for each such appeal, 
     measured by each phase of the appeal, and, if the processing 
     time for appeals exceed one year, the reasons for such 
     processing time;
       (C) a summary of reasons for which the development of 
     evidence was required under subsection (c)(5);
       (D) the number of issues decided, listed by the disposition 
     of the issue;
       (E) of the number identified in subparagraph (D), the 
     number of issues for which evidence was not so developed, 
     listed by the disposition of the issue;
       (F) of the number of fully developed appeals decided by the 
     Board of Veterans' Appeals, the number of cases from each 
     agency of original jurisdiction, listed by the disposition of 
     the issue;
       (G) the number of fully developed appeals appealed to the 
     Court of Appeals for Veterans Claims, listed by the 
     disposition of the case;
       (H) the number of reversions made under subsection (b)(3); 
     and
       (I) any reasons for why a claimant was determined to be 
     ineligible to participate in the pilot program.
       (2) A review, made in conjunction with veterans service 
     organizations, of the efforts of the Secretary to provide 
     clear rating decisions and improve disability rating 
     notification letters, including with respect to--
       (A) the opinions of veterans service organizations 
     regarding such efforts; and
       (B) how the pilot program improves such efforts.
       (3) A recommendation for any changes to improve the pilot 
     program.
       (4) An assessment of the feasibility and advisability of 
     expanding the pilot program.
       (f) Regulations.--Not later than one day after the date of 
     the enactment of this Act, the Secretary shall publish 
     interim guidance on the pilot program under subsection (a). 
     Not later than 90 days after such date of enactment, the 
     Secretary shall prescribe regulations to carry out such pilot 
     program.
       (g) Definitions.--In this section:
       (1) The term ``claimant'' has the meaning given that term 
     in section 5100 of title 38, United States Code.
       (2) The term ``compensation'' has the meaning given that 
     term in section 101 of title 38, United States Code.
       (3) The term ``fully developed appeal'' means an appeal of 
     a claim for disability compensation that is--
       (A) filed by a claimant in accordance with subsection 
     (b)(1); and
       (B) considered in accordance with this section.
       (4) The term ``standard appeal'' means an appeal of a claim 
     for disability compensation that is not a fully developed 
     appeal.

     SEC. 13. DEADLINE FOR CERTIFICATION OF APPEALS FORMS BY 
                   REGIONAL OFFICES OF THE DEPARTMENT OF VETERANS 
                   AFFAIRS.

       The Secretary of Veterans Affairs shall take such steps as 
     may be necessary to ensure that when a regional office of the 
     Department of Veterans Affairs receives a form known as ``VA 
     Form 9, Appeal to Board of Veterans' Appeals'', or any 
     successor form, submitted by a veteran to appeal a decision 
     relating to a claim, the regional office certifies such form 
     by not later than one year after the date of the receipt of 
     the form.

     SEC. 14. EVALUATION OF BACKLOG OF DISABILITY CLAIMS AND 
                   APPEALS OF CLAIMS OF DEPARTMENT OF VETERANS 
                   AFFAIRS.

       (a) In General.--There is established a commission or task 
     force to evaluate the backlog of claims within the Department 
     of Veterans Affairs and the appeals process of claims.
       (b) Studies.--
       (1) Backlog study.--
       (A) In general.--The Commission or Task Force, acting 
     through the subcommittee described in subsection (d)(2)(A), 
     shall carry out a study on the backlog of claims, including 
     the current process the Secretary of Veterans Affairs uses to 
     evaluate claims and appeals and the laws and regulations 
     applicable to such claims and appeals. Such study shall be a 
     comprehensive evaluation and assessment of the backlog of 
     claims, an analysis of possible improvements to the 
     procedures used to process such claims, and any related 
     issues that the Commission or Task Force considers relevant.
       (B) Matters included.--In carrying out the study under 
     subparagraph (A), the Commission or Task Force shall examine 
     the following:
       (i) The backlog of claims, including an analysis of--

       (I) the most effective means to quickly and accurately 
     resolve all claims pending as of the date of the study; and
       (II) with respect to the Department, the annual funding, 
     number of full-time employees, workload management practices, 
     and the progress, as of the date of the study, of the 
     strategic plan.

       (ii) Possible improvements to the claims process, including 
     an evaluation and recommendations with respect to whether 
     substantive and structural changes to the overall claims 
     process are required.
       (iii) In carrying out the evaluation and recommendations 
     under subparagraph (B), an examination of--

       (I) options that make no major substantive changes to the 
     claims process;
       (II) options that maintain the process but make minor 
     changes; and
       (III) options that make broad changes to the process.

       (2) Appeals process study.--
       (A) In general.--The Commission or Task Force, acting 
     through the subcommittee described in subsection (d)(2)(B), 
     shall carry out a study on the anticipated increase of 
     appeals of claims, including the current appeals process and 
     the laws and regulations applicable to such appeals. Such 
     study shall be a comprehensive evaluation and assessment of 
     such anticipated increase of appeals claims, an analysis of 
     possible improvements to the procedures used to process such 
     appeals, and any related issues that the Commission or Task 
     Force considers relevant.
       (B) Matters included.--In carrying out the study under 
     subparagraph (A), the Commission or Task Force shall examine 
     the following:
       (i) The anticipated surge in appeals of claims, including 
     an analysis of--

       (I) the most effective means to quickly and accurately 
     resolve pending appeals and future appeals;
       (II) with respect to both the Board and the Court of 
     Appeals for Veterans Claims, the annual funding, number of 
     full-time employees, workload management practices, and the 
     progress, as of the date of the study, of the strategic plan; 
     and
       (III) the efficiency, effectiveness, and utility of the 
     Veterans Benefits Management System with respect to appeals 
     operations, including an identification of key changes that 
     may need to be implemented to such system.

       (ii) Possible improvements to the appeals process, 
     including an evaluation and recommendations with respect to 
     whether substantive and structural changes to the overall 
     appeals process are required.
       (iii) In carrying out the evaluation and recommendations 
     under clause (ii), an examination of--

       (I) options that make no major substantive changes to the 
     appeals process;
       (II) options that maintain the process but make minor 
     changes;
       (III) options that make broad changes to the process;
       (IV) the necessity of the multi-tiered levels of appeals at 
     the regional office level, including filing a notice of 
     disagreement, receipt of a statement of the case, 
     supplemental statement of the case (if applicable), and 
     substantive appeal (VA Form 9);
       (V) the role of the Board and the Appeals Management 
     Center, including--

       (aa) the effectiveness of the workload management of the 
     Board and the Center;
       (bb) whether the Board and Center should be regionalized or 
     maintain the centralized structure in the District of 
     Columbia;
       (cc) whether Board members should be required to pass the 
     administrative law judges certification examination; and
       (dd) whether the Board should continue to require de novo 
     review of appeals; and

       (VI) the role of the Court of Appeals for Veterans Claims 
     and the United States Court of Appeals for the Federal 
     Circuit, including--

       (aa) the continued effectiveness and necessity of a multi-
     tiered structure of judicial review;
       (bb) whether the Court of Appeals for Veterans Claims 
     should have Article I or Article III status;
       (cc) expansion of either the Court of Appeals for Veterans 
     Claims or the United States Court of Appeals for the Federal 
     Circuit jurisdiction, including by allowing such courts to 
     hear class action lawsuits with respect to claims; and
       (dd) the possibility of expanding judicial review of claims 
     to all Federal circuit courts of appeals or allowing judicial 
     review beyond the Court of Appeals for Veterans Claims only 
     by the Supreme Court.
       (3) Consideration.--In carrying out the studies under 
     paragraph (1)(A) and (2)(A) and making any recommendations 
     under this section, the Commission or Task Force shall 
     consider the following:
       (A) The interests of veterans, including with respect to 
     accuracy, fairness, and transparency in the claims process of 
     the Department.
       (B) The values and requirements of the Constitution, 
     including with respect to compliance with procedural and 
     substantive due process.
       (C) The public interest, including with respect to the 
     responsible use of available resources.
       (D) With respect to the study conducted under paragraph 
     (1)(A), the importance of the claimant friendly, 
     nonadversarial nature of the claims process.
       (E) With respect to the study conducted under paragraph 
     (2)(A), the importance of an appeals process that is 
     efficient and easily understandable by a claimant.
       (4) Role of secretary, chairman of the board, and chief 
     judge.--
       (A) Information.--In carrying out each study under 
     paragraph (1)(A) and (2)(A), at

[[Page 1485]]

     times that the Commission or Task Force determines 
     appropriate, the Commission or Task Force shall submit to the 
     Secretary of Veterans Affairs, the Chairman of the Board, and 
     the Chief Judge of the Court of Appeals for Veterans Claims, 
     as the case may be, information with respect to remedies and 
     solutions that the Commission or Task Force identifies 
     pursuant to such a study.
       (B) Implementation.--The Secretary, the Chairman of the 
     Board, and the Chief Judge shall each--
       (i) fully consider the remedies and solutions submitted to 
     the Secretary, the Chairman, or the Chief Judge, as the case 
     may be, under subparagraph (A);
       (ii) implement such remedies and solutions as the 
     Secretary, the Chairman, or the Chief Judge, respectively, 
     determines appropriate; and
       (iii) submit to Congress justification for failing to 
     implement any such remedy or solution.
       (C) Plan.--The Commission or Task Force shall submit to the 
     Secretary, the Chairman of the Board, and the Chief Judge a 
     feasible, timely, and cost-effective plan to eliminate the 
     backlog of appeals of claims based on the remedies and 
     solutions identified pursuant to the study under paragraph 
     (2)(A) and the information submitted under subparagraph (A).
       (c) Comprehensive Reports.--
       (1) Initial comprehensive report.--Not later than 60 days 
     after the date on which the Commission or Task Force first 
     meets, the Commission or Task Force shall submit to the 
     President and Congress an initial comprehensive report on the 
     studies conducted under paragraphs (1)(A) and (2)(A) of 
     subsection (b), including--
       (A) the findings of the causes of the backlog of claims;
       (B) a proposed plan to handle the anticipated surge in 
     appeals of claims; and
       (C) the level of cooperation the Commission or Task Force 
     has received from the Secretary and the heads of other 
     departments or agencies of the Federal Government.
       (2) Interim comprehensive reports.--Not later than 90 days 
     after the date on which the Commission or Task Force first 
     meets, and each 30-day period thereafter ending on the date 
     on which the Commission or Task Force submits the final 
     comprehensive report under paragraph (3), the Commission or 
     Task Force shall submit to the President and Congress a 
     comprehensive report on--
       (A) the progress of the Secretary with respect to 
     implementing solutions to expedite the elimination of the 
     backlog of claims pursuant to subsection (b)(4)(B)(ii);
       (B) the progress of the Secretary, the Chairman of the 
     Board, and the Chief Judge of the Court of Appeals for 
     Veterans Claims with respect to implementing solutions to 
     complete appeals of claims in a timely manner in a timely 
     manner pursuant to such subsection; and
       (C) the level of cooperation the Commission or Task Force 
     has received from the Secretary and the heads of other 
     departments or agencies of the Federal Government.
       (3) Final comprehensive report.--Not later than 180 days 
     after the date on which the Commission or Task Force first 
     meets, the Commission or Task Force shall submit to the 
     President and Congress a comprehensive report on the 
     following:
       (A) With respect to the study conducted under subsection 
     (b)(1)(A)--
       (i) The findings, conclusions, and recommendations of the 
     Commission or Task Force with respect to the matters referred 
     to in such subsection.
       (ii) The recommendations of the Commission or Task Force 
     for revising and improving the backlog of claims and the 
     procedures used to process claims.
       (iii) The progress of the Secretary with respect to 
     implementing solutions to expedite the elimination of the 
     backlog of claims pursuant to subsection (b)(4)(B)(ii).
       (iv) Other information and recommendations with respect to 
     claims as the Commission or Task Force considers appropriate.
       (B) With respect to the study conducted under subsection 
     (b)(2)(A)--
       (i) The findings, conclusions, and recommendations of the 
     Commission or Task Force with respect to the matters referred 
     to in such subsection.
       (ii) The recommendations of the Commission or Task Force 
     for revising and improving the appeals process;
       (iii) The information described in subsection (b)(4)(A).
       (iv) The feasible, timely, and cost effective plan 
     described in subsection (b)(4)(C).
       (v) The progress of the Secretary, the Chairman of the 
     Board, and the Chief Judge of the Court of Appeals for 
     Veterans Claims with respect to implementing solutions to 
     provide timely appeals of claims.
       (vi) Other information and recommendations with respect to 
     the appeals process as the Commission or Task Force considers 
     appropriate.
       (d) Membership.--
       (1) Number and appointment.--The Commission or Task Force 
     shall be composed of 15 members, appointed as follows:
       (A) Two members appointed by the Speaker of the House of 
     Representatives, one of whom shall be designated to serve 
     upon the Subcommittee on the Backlog of Claims and one of 
     whom shall be designated to serve upon the Subcommittee on 
     Appeals.
       (B) Two members appointed by the minority leader of the 
     House of Representatives, one of whom shall be designated to 
     serve upon the Subcommittee on the Backlog of Claims and one 
     of whom shall be designated to serve upon the Subcommittee on 
     Appeals.
       (C) Two members appointed by the majority leader of the 
     Senate, one of whom shall be designated to serve upon the 
     Subcommittee on the Backlog of Claims and one of whom shall 
     be designated to serve upon the Subcommittee on Appeals.
       (D) Two members appointed by the minority leader of the 
     Senate, one of whom shall be designated to serve upon the 
     Subcommittee on the Backlog of Claims and one of whom shall 
     be designated to serve upon the Subcommittee on Appeals.
       (E) Three members appointed by the President, two of whom 
     shall be designated to serve upon the Subcommittee on the 
     Backlog of Claims and one of whom shall be designated to 
     serve upon the Subcommittee on Appeals.
       (F) One member appointed by the Secretary of Defense, whom 
     shall be designated to serve upon the Subcommittee on the 
     Backlog of Claims.
       (G) Two members appointed by the Secretary of Veterans 
     Affairs, one of whom shall be designated to serve upon the 
     Subcommittee on the Backlog of Claims and one of whom shall 
     be designated to serve upon the Subcommittee on Appeals.
       (H) One member appointed by the Chief Judge of the Court of 
     Appeals for Veterans Claims, whom shall be designated to 
     serve upon the Subcommittee on Appeals.
       (2) Subcommittees.--The Commission or Task Force shall have 
     two subcommittees as follows:
       (A) A Subcommittee on the Backlog of Claims consisting of 
     the eight members designated in accordance with paragraph 
     (1).
       (B) A Subcommittee on Appeals consisting of the seven 
     members designated in accordance with paragraph (1).
       (3) Qualifications.--Each member appointed under paragraph 
     (1) shall be appointed based on the experience of the member 
     as a veteran or on the subject matter expertise or other 
     relevant experience of the member.
       (4) Advisors.--
       (A) In general.--In addition to the 15 members appointed 
     under paragraph (1), the Commission or Task Force shall--
       (i) have five nonvoting, nonmember advisors, appointed by a 
     majority of the Commission or Task Force, each from a 
     different organization that represents the interests of 
     veterans; and
       (ii) seek advice from experts from nongovernmental 
     organizations (including veterans service organizations and 
     military organizations), the Internet technology industry, 
     and the insurance industry.
       (B) Advice.--Individuals described in clause (i) and (ii) 
     of subparagraph (A) shall provide advice to both 
     subcommittees described in paragraph (2).
       (5) Chairman.--The President shall designate a member of 
     the Commission or Task Force who is appointed by the 
     President and designated to serve upon the Subcommittee on 
     the Backlog of Claims to serve as the chairman of the 
     Commission or Task Force. The chairman may designate a member 
     to serve as the chairman of the Subcommittee on the Backlog 
     of Claims and a member to serve as the chairman of the 
     Subcommittee on Appeals to chair such subcommittees as the 
     designee of the chairman of the Commission or Task Force.
       (6) Period of appointment.--Members of the Commission or 
     Task Force shall be appointed for the life of the Commission 
     or Task Force. A vacancy shall not affect its powers.
       (7) Vacancy.--A vacancy on the Commission or Task Force 
     shall be filled in the manner in which the original 
     appointment was made.
       (8) Appointment deadline.--The appointment of members of 
     the Commission or Task Force established in this section 
     shall be made not later than 15 days after the date of the 
     enactment of this Act.
       (e) Meetings.--
       (1) Initial meeting.--The Commission or Task Force shall 
     hold its first meeting not later than 15 days after the date 
     on which a majority of the members are appointed.
       (2) Meetings.--The Commission or Task Force shall meet at 
     the call of the chairman.
       (3) Quorum.--A majority of the members of the Commission or 
     Task Force shall constitute a quorum, but a lesser number may 
     hold hearings.
       (f) Powers of the Commission or Task Force.--
       (1) Hearings.--The Commission or Task Force may hold such 
     hearings, sit and act at such times and places, take such 
     testimony, and receive such evidence as the Commission or 
     Task Force considers advisable to carry out the purposes of 
     this section.
       (2) Information from federal agencies.--The Commission or 
     Task Force may secure directly from any department or agency 
     of the Federal Government such information as

[[Page 1486]]

     the Commission or Task Force considers necessary to carry out 
     the provisions of this section. Upon request of the chairman, 
     the head of such department or agency shall furnish such 
     information to the Commission or Task Force.
       (3) Postal services.--The Commission or Task Force may use 
     the United States mails in the same manner and under the same 
     conditions as other departments and agencies of the Federal 
     Government.
       (4) Gifts.--The Commission or Task Force may accept, use, 
     and dispose of gifts or donations of service or property.
       (g) Personnel Matters.--
       (1) Compensation of members.--Each member of the Commission 
     or Task Force who is not an officer or employee of the United 
     States shall be compensated at a rate equal to the daily 
     equivalent of the annual rate of basic pay prescribed for 
     level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code, for each day (including travel 
     time) during which the member is engaged in the performance 
     of the duties of the Commission or Task Force. All members of 
     the Commission or Task Force who are officers or employees of 
     the United States shall serve without compensation in 
     addition to that received for their services as officers or 
     employees of the United States.
       (2) Travel expenses.--The members of the Commission or Task 
     Force shall be allowed travel expenses, including per diem in 
     lieu of subsistence, at rates authorized for employees of 
     agencies under subchapter I of chapter 57 of title 5, United 
     States Code, while away from their homes or regular places of 
     business in the performance of service of the Commission or 
     Task Force.
       (3) Staff.--
       (A) Appointment.--The chairman of the Commission or Task 
     Force may, without regard to the civil service laws and 
     regulations, appoint an executive director and such other 
     personnel as may be necessary to enable the Commission or 
     Task Force to perform its duties. The appointment of an 
     executive director shall be subject to the approval of the 
     Commission or Task Force.
       (B) Compensation.--The chairman of the Commission or Task 
     Force may fix the compensation of the executive director and 
     other personnel without regard to the provisions of chapter 
     51 and subchapter III of chapter 53 of title 5, United States 
     Code, relating to classification of positions and General 
     Schedule pay rates, except that the rate of pay for the 
     executive director and other personnel may not exceed the 
     rate payable for level V of the Executive Schedule under 
     section 5316 of such title.
       (4) Detail of government employees.--Upon request of the 
     chairman of the Commission or Task Force, the head of any 
     department or agency of the Federal Government may detail, on 
     a nonreimbursable basis, any personnel of that department or 
     agency to the Commission or Task Force to assist it in 
     carrying out its duties.
       (5) Procurement of temporary and intermittent services.--
     The chairman of the Commission or Task Force may procure 
     temporary and intermittent services under section 3109(b) of 
     title 5, United States Code, at rates for individuals which 
     do not exceed the daily equivalent of the annual rate of 
     basic pay prescribed for level V of the Executive Schedule 
     under section 5316 of such title.
       (h) Termination of Commission or Task Force.--The 
     Commission or Task Force shall terminate 60 days after the 
     date on which the Commission or Task Force submits the final 
     comprehensive report under subsection (c)(3).
       (i) Funding.--
       (1) In general.--The Secretary shall, upon the request of 
     the chairman of the Commission or Task Force, make available 
     to the Commission or Task Force such amounts as the 
     Commission or Task Force may require to carry out the duties 
     of the Commission or Task Force under this section.
       (2) Availability.--Any sums made available to the 
     Commission or Task Force shall remain available, without 
     fiscal year limitation, until the termination of the 
     Commission or Task Force.
       (j) Definitions.--In this section:
       (1) The term ``appeals process'' means the process to 
     appeal the determination by the Secretary of a claim 
     beginning with the notice of disagreement filed pursuant to 
     section 7105 of title 38, United States Code, and ending with 
     the review of a decision by the Supreme Court pursuant to 
     section 7292(c) of such title.
       (2) The term ``Board'' means the Board of Veterans' 
     Appeals.
       (3) The term ``strategic plan'' means the Strategic Plan to 
     Eliminate the Compensation Claims Backlog, published by the 
     Secretary of Veterans Affairs on January 25, 2013.
       (k) Effective Date.--This section shall take effect on the 
     date that is one year after the date of the enactment of this 
     Act.

     SEC. 15. METHODS FOR VALIDATING CERTAIN WORLD WAR II MERCHANT 
                   MARINER SERVICE CONSIDERED TO BE ACTIVE SERVICE 
                   BY THE SECRETARY OF VETERANS AFFAIRS.

       (a) In General.--For the purposes of verifying that an 
     individual performed service under honorable conditions that 
     satisfies the requirements of a coastwise merchant seaman who 
     is recognized pursuant to section 401 of the GI Bill 
     Improvement Act of 1977 (Public Law 95-202; 38 U.S.C. 106 
     note) as having performed active duty service for the 
     purposes described in subsection (c)(1), the Secretary of 
     Defense shall accept the following:
       (1) In the case of an individual who served on a coastwise 
     merchant vessel seeking such recognition for whom no 
     applicable Coast Guard shipping or discharge form, ship 
     logbook, merchant mariner's document or Z-card, or other 
     official employment record is available, the Secretary shall 
     provide such recognition on the basis of applicable Social 
     Security Administration records submitted for or by the 
     individual, together with validated testimony given by the 
     individual or the primary next of kin of the individual that 
     the individual performed such service during the period 
     beginning on December 7, 1941, and ending on December 31, 
     1946.
       (2) In the case of an individual who served on a coastwise 
     merchant vessel seeking such recognition for whom the 
     applicable Coast Guard shipping or discharge form, ship 
     logbook, merchant mariner's document or Z-card, or other 
     official employment record has been destroyed or otherwise 
     become unavailable by reason of any action committed by a 
     person responsible for the control and maintenance of such 
     form, logbook, or record, the Secretary shall accept other 
     official documentation demonstrating that the individual 
     performed such service during period beginning on December 7, 
     1941, and ending on December 31, 1946.
       (3) For the purpose of determining whether to recognize 
     service allegedly performed during the period beginning on 
     December 7, 1941, and ending on December 31, 1946, the 
     Secretary shall recognize masters of seagoing vessels or 
     other officers in command of similarly organized groups as 
     agents of the United States who were authorized to document 
     any individual for purposes of hiring the individual to 
     perform service in the merchant marine or discharging an 
     individual from such service.
       (b) Treatment of Other Documentation.--Other documentation 
     accepted by the Secretary of Defense pursuant to subsection 
     (a)(2) shall satisfy all requirements for eligibility of 
     service during the period beginning on December 7, 1941, and 
     ending on December 31, 1946.
       (c) Benefits Allowed.--
       (1) Burial benefits eligibility.--Service of an individual 
     that is considered active duty pursuant to subsection (a) 
     shall be considered as active duty service with respect to 
     providing burial benefits under chapters 23 and 24 of title 
     38, United States Code, to the individual.
       (2) Medals, ribbons, and decorations.--An individual whose 
     service is recognized as active duty pursuant to subsection 
     (a) may be awarded an appropriate medal, ribbon, or other 
     military decoration based on such service.
       (3) Status of veteran.--An individual whose service is 
     recognized as active duty pursuant to subsection (a) shall be 
     honored as a veteran but shall not be entitled by reason of 
     such recognized service to any benefit that is not described 
     in this subsection.
       (d) Determination of Coastwise Merchant Seaman.--The 
     Secretary of Defense shall verify that an individual 
     performed service under honorable conditions that satisfies 
     the requirements of a coastwise merchant seaman pursuant to 
     this section without regard to the sex, age, or disability of 
     the individual during the period in which the individual 
     served as such a coastwise merchant seaman.
       (e) Definition of Primary Next of Kin.--In this section, 
     the term ``primary next of kin'' with respect to an 
     individual seeking recognition for service under this section 
     means the closest living relative of the individual who was 
     alive during the period of such service.
       (f) Effective Date.--This section shall take effect 90 days 
     after the date of the enactment of this Act.

     SEC. 16. DESIGNATION OF AMERICAN WORLD WAR II CITIES.

       (a) In General.--The Secretary of Veterans Affairs shall 
     designate at least one city in the United States each year as 
     an ``American World War II City''.
       (b) Criteria for Designation.--After the designation made 
     under subsection (c), the Secretary, in consultation with the 
     Secretary of Defense, shall make each designation under 
     subsection (a) based on the following criteria:
       (1) Contributions by a city to the war effort during World 
     War II, including those related to defense manufacturing, 
     bond drives, service in the Armed Forces, and the presence of 
     military facilities within the city.
       (2) Efforts by a city to preserve the history of the city's 
     contributions during World War II, including through the 
     establishment of preservation organizations or museums, 
     restoration of World War II facilities, and recognition of 
     World War II veterans.
       (c) First American World War II City.--The city of 
     Wilmington, North Carolina, is designated as an ``American 
     World War II City''.

     SEC. 17. SENSE OF CONGRESS REGARDING AMERICAN VETERANS 
                   DISABLED FOR LIFE.

       (a) Findings.--Congress makes the following findings:

[[Page 1487]]

       (1) There are at least 3,600,000 veterans currently living 
     with service-connected disabilities.
       (2) As a result of their service, many veterans are 
     permanently disabled throughout their lives and in many cases 
     must rely on the support of their families and friends when 
     these visible and invisible burdens become too much to bear 
     alone.
       (3) October 5, which is the anniversary of the dedication 
     of the American Veterans Disabled for Life Memorial, has been 
     recognized as an appropriate day on which to honor American 
     veterans disabled for life each year.
       (b) Sense of Congress.--Congress--
       (1) expresses its appreciation to the men and women left 
     permanently wounded, ill, or injured as a result of their 
     service in the Armed Forces;
       (2) supports the annual recognition of American veterans 
     disabled for life each year; and
       (3) encourages the American people to honor American 
     veterans disabled for life each year with appropriate 
     programs and activities.

     SEC. 18. EXTENSION OF PILOT PROGRAM ON COUNSELING IN RETREAT 
                   SETTINGS FOR WOMEN VETERANS NEWLY SEPARATED 
                   FROM SERVICE IN THE ARMED FORCES.

       Section 203(d) of the Caregivers and Veterans Omnibus 
     Health Services Act of 2010 (Public Law 111-163; 38 U.S.C. 
     1712A note) is amended by striking ``December 31, 2016'' and 
     inserting ``December 31, 2021''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Louisiana (Mr. Abraham) and the gentleman from California (Mr. Takano) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Louisiana.


                             General Leave

  Mr. ABRAHAM. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days in which to revise and extend their remarks and 
add extraneous materials to H.R. 677, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Louisiana?
  There was no objection.
  Mr. ABRAHAM. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 677, as amended.
  H.R. 677, as amended, contains many important provisions that would 
help our Nation's veterans, including provisions to provide an 
automatic annual COLA, cost-of-living adjustment, for veterans' 
benefits; expedite the processing of veterans' claims and appeals; 
improve VA's fiduciary program; expand the official documentation 
accepted by the Secretary of Defense to grant veteran status with 
limited benefits to World War II Merchant Marine and Coastwise Merchant 
Seamen; designate certain cities as American World War II cities; and 
express the sense of Congress honoring American veterans disabled for 
life.
  I want to recognize the hard work of the Members whose proposals have 
been incorporated into H.R. 677, as amended. I particularly want to 
thank my colleagues on the Veterans' Affairs Committee: Chairman 
Miller, Ranking Member Brown, Ms. Titus, Dr. Ruiz, Mr. Walz, and Mr. 
O'Rourke. In addition, I want to acknowledge the contributions of 
Representatives Johnson, Butterfield, Latta, Rouzer, and Frankel.
  H.R. 677, as amended, incorporates legislation that Chairman Miller 
introduced that would expand the eligibility for a medallion provided 
by VA for private headstones that identify the deceased as a veteran.
  These medallions may be attached to privately purchased headstones of 
veterans who are buried in private cemeteries. They are inscribed with 
the word ``veteran'' across the top, and the branch of service is 
inscribed along the bottom. The medallions have proven to be very 
popular, with many families choosing to use it to honor the service of 
their loved one.
  Unfortunately, current law only authorizes medallions for veterans 
who died before November 1, 1990. During a Disability Assistance and 
Memorial Affairs Subcommittee hearing, the VA testified that it has 
been forced to deny 91 percent of applications for medallions because 
the requests were made by families of veterans who died before November 
1, 1990.
  H.R. 677, as amended, would allow the VA to provide these medallions 
to individuals who served in the Armed Forces after April 6, 1917, 
which is the date the United States entered World War I.
  The reason that this proposal limits eligibility to those who served 
after April 6, 1917, is due to the possibility that attaching a 
medallion to an older headstone may cause damage. There are also 
concerns that placing medallions on antique headstones in older 
cemeteries may alter the appearance of historic cemeteries.
  H.R. 677, as amended, would protect historic gravestones and 
cemeteries, but also recognizes the importance in honoring the service 
and sacrifice of those who have served our Nation in the Armed Forces.
  These medallions ensure that veterans who are buried in private 
cemeteries and whose graves are marked by privately purchased 
headstones can easily be distinguished. I hope that when people visit 
these cemeteries and see these medallions they take a few moments to 
remember that we all owe our freedom to our Nation's veterans. These 
patriotic heroes deserve nothing less.
  This bill also includes the text of H.R. 1575, a bill that was 
introduced by Ranking Member Brown to extend a pilot program on 
counseling in retreat settings for women veterans who are newly 
separated from service. This pilot was originally authorized in 2010, 
and pilot participants have reported unanimously positive experiences 
and a significant improvement in well-being, stress, and positive 
coping skills following their participation in the retreats.
  I am grateful to the ranking member for sponsoring this provision in 
recognition of the good work being done in this pilot program and the 
need to ensure that women veterans continue to have access to it.
  There are many provisions in H.R. 677, as amended, that would help 
improve services for veterans and their families, but I want to focus 
my remarks on the section that I am proud to have authored.
  First, the bill would authorize an automatic annual COLA for 
beneficiaries who receive VA disability compensation. Although Congress 
generally approves COLA legislation every year, veterans have to wait 
until Congress actually acts. This can be very stressful for our 
veterans and their families who depend on their payments to make ends 
meet. Our Nation's heroes should not have to wait to know whether they 
are going to be able to pay their bills or not.
  H.R. 677, as amended, would ensure that our Nation's veterans 
automatically receive the same annual COLA as Social Security 
recipients. This critical provision will help our Nation's veterans 
better plan for their financial future, and I urge all Members to 
support it.
  Second, this legislation would help make it more convenient for 
veterans to schedule disability examinations by extending the temporary 
authorization that allows the VA to use contract physicians to conduct 
disability examinations through 2017.
  Veterans in rural areas, like the Fifth District which I represent, 
may have to travel long distances to see a VA examiner for a disability 
examination. My proposal would make it easier to schedule disability 
examinations by permitting the VA to contract with any physician with a 
current, unrestricted license to conduct these examinations in the 
United States.
  Additionally, H.R. 677, as amended, would require the VA to provide 
Congress with regular types of claims veterans file. This information 
will help better inform our efforts to reform the VA and ensure 
veterans receive timely, accurate claims decisions.
  Section 4 of H.R. 677, as amended, would also express the sense of 
Congress that the VA should develop a designated form for an increased 
rating claim or reopening of a claim that does not require the 
resubmittal of information previously submitted to the Department.
  I am grateful for the ranking member's response in this provision in 
recognition of the good work being done in this pilot program, and we 
need to ensure that it is passed. I urge my colleagues to support the 
legislation.

[[Page 1488]]

  Mr. Speaker, I reserve the balance of my time.
  Mr. TAKANO. Mr. Speaker, I yield myself such time as I may consume.
  I would like to express my appreciation to all the members of our 
committee who have worked to address these issues in a bipartisan 
manner, and I truly hope we can stay focused on what is important here, 
which is helping veterans.
  This bill extends a pilot counseling program for women veterans 
separating from the military and coping with PTSD and other combat-
related stress issues. These specialized programs are helping women 
transition from the military and start the next phase of their lives.
  I would also like to highlight an important piece of this legislation 
that was originally introduced by my friend and colleague, Mr. 
O'Rourke, the Express Appeals Act.
  As highlighted by my friend and colleague, Representative Titus, 
other members of the committee, and even the VA Secretary just 2 weeks 
ago, the appeals process is in crisis. We in the House have heard the 
cry for help and have responded.
  After passing this bill, we will wait for our friends in the Senate 
to take action. We encourage them to remember our veterans suffer for 
our inaction. This action provides a critical and widely supported 
alternative appeals process.
  I applaud Representatives O'Rourke and Cook, Chairman Miller, the VA, 
the Board of Appeals, the DAV, the VFW, PVA, AMVETS, IAVA, and MOAA in 
working together for almost 2 years to reach broad consensus on an 
alternative path forward.
  The Express Appeals Act, similar to the VA's Fully Developed Claim 
program, offers veterans an alternative option to do more of the work 
on their own, with the promise of an expedited decision from the Board 
of Veterans Appeals.
  My friend and colleague, Representative Ruiz's bill, H.R. 2691, the 
Veterans' Survivors Claims Processing and Automation Act of 2015, is 
also included in this legislation. This provision would automate claims 
for the surviving family members of veterans.
  I truly believe how we treat our veterans plays a major role in who 
is willing to fight our wars and defend our Nation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. ABRAHAM. Mr. Speaker, I yield 2 minutes to the gentleman from 
Pennsylvania (Mr. Costello).
  Mr. COSTELLO of Pennsylvania. Mr. Speaker, I rise today to support 
H.R. 677, the American Heroes COLA Act.
  There are a lot of very excellent provisions to this bill, not the 
least of which is the automatic COLA, but I actually want to speak to 
part of this bill that deals with the claims processing.
  The legislation offered by my colleague from Louisiana (Mr. Abraham) 
would set out to improve the claims processing through several steps. I 
want to highlight them.
  First, it would require the VA to accept medical evidence from 
medical professionals in the community to support veterans' disability 
claims. Second, it would establish a commission to independently 
evaluate the VA's disability claims and appealed claims backlog. Last, 
it would develop an alternative program to determine appeals for 
disability claims more quickly.
  Each of these steps offers solutions to the current backlog. This 
bill is a smart, proactive, bipartisan bill that will help reduce the 
daunting piles of paperwork and delays that many veterans continue to 
face.
  I am very proud to be in support of this bill. It is another step in 
doing our best to reduce the claims backlog, and I thank Mr. Abraham 
for his leadership on this.
  Mr. ABRAHAM. Mr. Speaker, once again, I encourage all Members to 
support H.R. 677, as amended.
  I reserve the balance of my time.
  Mr. TAKANO. Mr. Speaker, I yield 3 minutes to the gentleman from 
North Carolina (Mr. Butterfield).
  Mr. BUTTERFIELD. Let me first thank Mr. Takano for yielding, and I 
thank all of you for your advocacy on this bill. This is a very, very 
important piece of legislation for our veterans.
  Mr. Speaker, we are running out of time to finally recognize the 
critical contributions of a forgotten but critical segment of brave men 
and women who served our country during World War II. Because we are 
running out of time, I urge my colleagues to pass H.R. 677, which 
contains provisions from my bill, H.R. 1288, that would create a 
pathway for these forgotten individuals to finally be recognized for 
their service to our country.
  I am referring to an overlooked segment of the World War II Merchant 
Marine, known as Coastwise Merchant Seamen. These men and women, Mr. 
Speaker, served the vital role of transporting raw materials and 
supplies between our domestic military installations and production 
facilities during the war. Their jobs were absolutely essential to the 
war effort.
  To this day, many of these mariners have never been recognized for 
their service, largely at no fault of their own, but rather because of 
decisions made by the Federal Government. It has been virtually 
impossible for many of these mariners to obtain the required documents 
needed to prove their World War II service due to government orders 
that either had these documents destroyed or never kept at all.
  Even today, government inaction and delay on transferring the 
surviving documents to the National Archives and Records Administration 
makes searching for and obtaining the required documents practically 
impossible. As each day passes, this issue grows more acute due to the 
advanced age of these mariners.
  We must make it possible for these great Americans to receive their 
due recognition while we still have the chance.

                              {time}  1615

  More importantly, we have to do this now, while these mariners still 
have the chance to know that their sacrifices were not in vain, and 
their Nation and government are appreciative of their service.
  Mr. Speaker, these mariners are national treasures, and we are here 
today because of their sacrifices. They deserve, each of them, to be 
recognized for their service, and I ask my colleagues to join me in 
this effort by voting ``yes'' on this bill.
  I want to thank Chairman Miller, Ranking Member Brown, subcommittee 
Chairman Abraham, and Ranking Member Titus for working with me and my 
staff on this issue, and including provisions of my bill in the base 
text.
  I want to thank the committee staff for all of their hard work. I am 
appreciative of their efforts. This has been a true team effort, and we 
are now one step closer to finally doing the right thing.
  Mr. TAKANO. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
Florida (Ms. Frankel).
  Ms. FRANKEL of Florida. I thank Mr. Takano for yielding.
  Mr. Speaker, I rise in support of H.R. 677, a bill that honors 
American veterans disabled for life. I thank my friend from Florida, 
Chairman Jeff Miller, for cosponsoring this bill with me and 
shepherding its passage.
  As the mother of a United States Marine veteran, I want to first 
start by thanking all our veterans who have served us. Thankfully for 
my family, my son returned safely from two wars.
  But, sadly, there are many for whom leaving the battlefield does not 
mark the end of a conflict, for them or their family. Jeff Colaiacovo 
is one of those people. I am proud to say he is a constituent and one 
of my heroes.
  On his 18th birthday, unlike many young men of his generation, he 
volunteered for the Army to go to the Vietnam War, and it would be 
brutal.
  A few months into his tour, in 1967, Jeff's tank hit a mine, and 
shrapnel exploded into his eyes, blinding him. Miraculously, the 
doctors were able to recover his vision, and soon after, he was back on 
the battlefield.
  Then, on August 30, 1967, Jeff's tank was hit by a rocket-propelled 
grenade, trapping him inside, his body engulfed in flames. He spent 5 
months in burn units around the world.

[[Page 1489]]

  He left the Army with an honorable discharge. And, again, he was not 
to be deterred. He got married. He raised children. He started a small 
business.
  The thing is, Mr. Speaker, the injuries he sustained during his 
service left him disabled for life. And to this day, Jeff is under 
heavy medication for PTSD. He bears the scars of duty that remind us 
all of what he and many others gave in serving us.
  Now, this bill recognizes that October 5 is the anniversary of the 
dedication of the Veterans Disabled for Life Memorial, a magnificent 
memorial that sits just steps away from the Capitol.
  On one of its walls reads a quote from Dwight D. Eisenhower: ``Each 
of you bears upon his body the permanent, honorable scars of dangerous 
service: service rendered in order that our great nation might continue 
to live according to the expressed will of its own citizens.''
  In honor of Jeff, and so many others, let's pass this bill.
  Mr. TAKANO. Mr. Speaker, I yield myself such time as I may consume.
  As I conclude, I would like to speak about a provision in this bill. 
Included here is language extending the very successful pilot program 
run by the Department of Veterans Affairs which provides psychiatric 
and psychological counseling and support in retreat settings for newly 
returned women veterans.
  A Veterans Health Administration report showed that this limited, 2-
year pilot program, run by the Readjustment Counseling Service, 
produced positive, measurable results helping returning women veterans 
experiencing post-traumatic stress, depression, sleep disturbances and 
isolation, many having been evaluated as service-connected for severe 
PTSD.
  In surveys, participants have consistently reported experiencing a 
marked decrease in stress symptoms and an increase in coping skills, 
including understanding better how to develop support systems and to 
access available resources at the VA and in their communities as they 
reenter civilian life.
  Post-9/11 women veterans, often combat veterans, are brought together 
in groups of about 20, in outdoor settings. These veterans, most of 
whom are coping with the effects of severe PTSD, some as a result of 
sexual trauma while in the military, participated in trust-building 
exercises and worked with counselors and psychological educators to 
build peer support.
  Financial and occupational counseling and conflict resolution 
training were also offered on an as-needed basis.
  I urge support of this provision and the underlying legislation.
  Mr. Speaker, I yield back the balance of my time.
  Mr. ABRAHAM. Mr. Speaker, I continue to urge support of H.R. 677.
  I yield back the balance of my time.
  Ms. JACKSON LEE. Mr. Speaker, I rise today in strong support of H.R. 
677, the ``American Heroes COLA Act.''
  This bill requires that, whenever there is an increase in benefit 
amounts payable under title II (Old Age, Survivors and Disability 
Insurance) of the Social Security Act, the Secretary of Veterans 
Affairs shall increase by the same percentage the amounts payable as 
veterans' disability compensation.
  H.R. 677 does the following:
  1. compensates for dependents
  2. a clothing allowance for certain disabled adults
  3. compensation for surviving spouses and children
  This bill requires that veterans are given the correct percentage and 
benefit amounts from the Social Security Act.
  Retired military veterans, VA rates for compensation and pension for 
disabled veterans and surviving families will be effective December 1, 
2015 and will be reflected on the first check to be paid on December 
31, 2015.
  Congress enacted the COLA provision as part of the 1972 Social 
Security Amendments, and automatic annual COLAs began in 1975. Before 
that, benefits were increased only when Congress enacted special 
legislation.
  COLA impacts benefits to about 59 social security recipients, 1.96 
million military retirees and 4 million disabled veterans.
  This increase in benefit amounts will help alleviate financial stress 
that millions of our disabled veterans have.
  As the sponsor of H.R. 76 ``the HERO Transition from Battlespace to 
Workplace Act,'' I strongly support our veterans and any bill that 
helps mitigate soldier to citizen transition.
  As Abraham Lincoln stated, ``Honor to the soldier and sailor 
everywhere, who bravely bears his country's cause. Honor, also, to the 
citizen who cares for his brother in the field and serves, as he best 
can, the same cause.''
  H.R. 677 is a positive step forward in increasing in benefit amounts 
payable as veteran's disability compensation.
  I strongly support this bill and urge my colleagues to join me and do 
the same.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Louisiana (Mr. Abraham) that the House suspend the rules 
and pass the bill, H.R. 677, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  The title of the bill was amended so as to read: ``A bill to amend 
title 38, United States Code, to provide for annual cost-of-living 
adjustments to be made automatically by law each year in 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, and for other 
purposes.''.
  A motion to reconsider was laid on the table.

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