[Senate Report 104-11]
[From the U.S. Government Publishing Office]



   104th Congress 1st            SENATE                 Report
         Session
                                                        104-11
_______________________________________________________________________

                                     

 
  LEGISLATIVE AND OVERSIGHT ACTIVITIES DURING THE 103D CONGRESS BY THE
                          SENATE COMMITTEE ON
                           VETERANS' AFFAIRS

                               __________

                       S P E C I A L  R E P O R T

                                 OF THE

                     COMMITTEE ON VETERANS' AFFAIRS
                          UNITED STATES SENATE
                          COMMITTEE ACTIVITIES




  March 2 (legislative day, February 22), 1995.--Ordered to be printed
          [103d Congress]

                     COMMITTEE ON VETERANS' AFFAIRS

   JOHN D. ROCKEFELLER IV, West 
        Virginia, Chairman
                                     DENNIS DeCONCINI, Arizona
                                     GEORGE J. MITCHELL, Maine
                                     BOB GRAHAM, Florida
                                     DANIEL K. AKAKA, Hawaii
                                     THOMAS A. DASCHLE, South Dakota
FRANK H. MURKOWSKI, Alaska           BEN NIGHTHORSE CAMPBELL, Colorado
STROM THURMOND, South Carolina
ALAN K. SIMPSON, Wyoming
ARLEN SPECTER, Pennsylvania
JAMES M. JEFFORDS, Vermont
Jim Gottlieb, Chief Counsel/Staff 
             Director
 John H. Moseman, Minority Staff 
      Director/Chief Counsel
                                 ------                                
         [104th Congress]

                     COMMITTEE ON VETERANS' AFFAIRS

ALAN K. SIMPSON, Wyoming, Chairman
                                     STROM THURMOND, South Carolina
                                     FRANK H. MURKOWSKI, Alaska
                                     ARLEN SPECTER, Pennsylvania
                                     JAMES M. JEFFORDS, Vermont
                                     HANK BROWN, Colorado
JOHN D. ROCKEFELLER IV, West VirginiaLARRY E. CRAIG, Idaho
BOB GRAHAM, Florida
DANIEL K. AKAKA, Hawaii
BEN NIGHTHORSE CAMPBELL, Colorado
BYRON L. DORGAN, North Dakota
 Tom Harvey, Chief Counsel/Staff 
             Director
   Jim Gottlieb, Minority Chief 
      Counsel/Staff Director


                            C O N T E N T S

                              ----------                              
                                                                   Page
  I. Introduction.....................................................1
        Hearings.................................................     1
            A. First session.....................................     1
            B. Second session....................................     1
        Legislation..............................................     2
            A. First session.....................................     2
            B. Second session....................................     2
        Nominations..............................................     3
            A. First session.....................................     3
            B. Second session....................................     5
 II. Budget on veterans programs......................................7
        A. First session.........................................     7
        B. Second session........................................     8
III. Service-connected compensation and related programs..............8
        A. Overview..............................................     8
        B. First session.........................................     9
        C. Second session........................................    10
            1. Compensation cost-of-living adjustment............    10
            2. Compensation for Persian Gulf War veterans........    11
            3. Compensation related to radiation exposure........    12
            4. Compensation related to Agent Orange exposure.....    12
 IV. Non-service-connected pension programs..........................13
        A. Overview..............................................    13
        B. First session.........................................    13
        C. Second session........................................    13
  V. Health care.....................................................13
        A. Overview..............................................    13
        B. First session.........................................    14
            1. General health care...............................    14
            2. Mental health.....................................    16
            3. Medical facility acquisition......................    17
        C. Second session........................................    18
            1. General health care...............................    18
            2. Mental health.....................................    20
            3. Medical facility acquisition......................    20
 VI. Educational benefits............................................21
        A. Overview..............................................    21
        B. First session.........................................    22
        C. Second session........................................    22
VII. Employment......................................................24
        A. Overview..............................................    24
        B. First session.........................................    24
        C. Second session........................................    25
VIII.
     Home loan guaranty program......................................28
        A. Overview..............................................    28
        B. First session.........................................    28
        C. Second session........................................    29
 IX. Claims adjudication and judicial review.........................30
        A. Overview..............................................    30
        B. First session.........................................    30
        C. Second session........................................    30
  X. Burial benefits and memorial affairs............................34
        A. Overview..............................................    34
        B. First session.........................................    34
        C. Second session........................................    35
 XI. Insurance.......................................................35
        A. Overview..............................................    35
        B. First session.........................................    35
        C. Second session........................................    36
XII. Homeless veterans...............................................36
        A. Overview..............................................    36
        B. First session.........................................    36
        C. Second session........................................    36
XIII.
     Miscellaneous...................................................38
        A. First session.........................................    38
        B. Second session........................................    38
            1. VA personnel......................................    38
            2. Minority and women veterans.......................    38
104th Congress                                                   Report
                                 SENATE

 1st Session                                                     104-11
_______________________________________________________________________


 LEGISLATIVE AND OVERSIGHT ACTIVITIES DURING THE 103D CONGRESS BY THE 
                 SENATE COMMITTEE ON VETERANS' AFFAIRS

                                _______


  March 2 (legislative day, February 22), 1995--Ordered to be printed

_______________________________________________________________________


  Mr. Simpson, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

    Pursuant to paragraph 8 of rule XXVI of the Standing Rules 
of the Senate, the Committee on Veterans' Affairs submits its 
report on legislative and oversight activities during the 103d 
Congress.

                            I. Introduction

                                Hearings

                            a. first session

    During the First Session of the 103rd Congress, the 
Committee held twenty-four days of hearings on legislative and 
oversight matters, on nominations to the Departments of 
Veterans Affairs and Labor, and on the legislative 
recommendations of veterans service organizations. Among those 
were eight days of hearings on VA health care programs and 
related matters; one day on VA compensation and pension; one 
day on veterans' employment programs; one day on VA and DOD's 
response to the health care needs of Persian Gulf War veterans; 
one day on the report by the National Academy of Sciences on 
health effects in Vietnam veterans of exposure to herbicides; 
and one day on claims processing and adjudication timeliness 
and staffing.

                           b. second session

    During the Second Session, the Committee held fifteen days 
of hearings on legislative and oversight matters, on 
nominations to the Department of Veterans Affairs, and on the 
legislative recommendations of veterans service organizations. 
Among those were three days of hearings on VA health care 
programs and related matters; one day on VA compensation and 
pension; four days on VA and DOD's response to the health care 
and other needs of Persian Gulf War veterans; one day on the 
needs of homeless veterans; and one day on claims processing 
and adjudication matters.

                              Legislation

                            a. first session

    During the First Session of the 103rd Congress, the 
Committee met in open session to consider legislation four 
times and reported ten bills to the Senate. The provisions of 
four of these reported bills, with modifications, were 
ultimately enacted into four public laws during the First 
Session. Provisions from five other bills were ultimately 
enacted into three public laws (discussed below) during the 
Second Session. Finally, two bills (discussed below) within the 
Committee's jurisdiction were enacted into two public laws in 
the First Session with Committee support but without formal 
Committee action.
    The four public laws enacted during the First Session which 
included provisions from bills reported by the Committee are:
    1. An act to amend title 38, United States Code, to codify 
the rates of disability compensation for veterans with service-
connected disabilities and the rates of dependency and 
indemnity compensation for survivors of such veterans as such 
rates took effect on December 1, 1992 (Public Law 103-78), 
signed August 13, 1993.
    2. An act to authorize major medical facility construction 
projects for the Department of Veterans Affairs for fiscal year 
1994, and for other purposes (Public Law 103-79), signed August 
13, 1993.
    3. The Veterans' Compensation Rates Amendments of 1993 
(Public Law 103-140), signed November 11, 1993.
    4. An act to authorize the placement of a memorial cairn in 
Arlington National Cemetery, Arlington, VA, to honor the 270 
victims of the terrorist bombing of Pan Am Flight 103 (Public 
Law 103-158), signed November 24, 1993.
    The two public laws which were derived from bills within 
the Committee's jurisdiction that were enacted with Committee 
support but without formal Committee action are:
    1. An act to amend title 38, United States Code, to 
increase the rate of special pension payable to persons who 
have received the Congressional Medal of Honor (Public Law 103-
161), signed November 30, 1993.
    2. An act to amend title 38, United States Code, to provide 
additional authority for the Secretary of Veterans Affairs to 
provide health care for veterans of the Persian Gulf War 
(Public Law 103-210), signed December 20, 1993.

                           b. second session

    During the Second Session, the Committee met in open 
session to consider legislation four times and reported ten 
bills to the Senate. The provisions of eight of these reported 
bills, with modifications, were ultimately enacted into four 
public laws during the Second Session.
    These four public laws are:
    1. The Board of Veterans' Appeals Administrative Procedures 
Improvement Act of 1994 (Public Law 103-271), signed July 1, 
1994.
    2. The Veterans' Compensation Cost-of-Living Adjustment Act 
of 1994 (Public Law 103-418), signed October 25, 1994.
    3. The Veterans' Benefits Improvement Act of 1994 (Public 
Law 103-446), signed November 2, 1994.
    4. The Veterans Health Programs Extension Act of 1994 
(Public Law 103-452), signed November 2, 1994.
    The three public laws enacted during the Second Session 
which included provisions from bills reported during the First 
Session are:
    1. An Act to amend title 38, United States Code, to extend 
eligibility for burial in national cemeteries to persons who 
have 20 years of service creditable for retired pay as members 
of a reserve component of the Armed Forces and to their 
dependents (Public Law 103-240), signed May 4, 1994.
    2. The Uniformed Services Employment and Reemployment Act 
of 1994 (Public Law 103-353), signed October 13, 1994.
    3. The Veterans Health Programs Extension Act of 1994 
(Public Law 103-452), signed November 2, 1994.

                              Nominations

                            a. first session

    During the First Session of the 103rd Congress, the 
Committee met in open session five times and reported nine 
nominations to the Senate. In addition, the Committee conducted 
a hearing on one nomination that was placed directly on the 
Senate Executive Calendar without referral to the Committee. 
The following table portrays the Committee's and the Senate's 
actions regarding these nominations:

                                   DEPARTMENT OF VETERANS AFFAIRS NOMINATIONS                                   
----------------------------------------------------------------------------------------------------------------
    Position and name      Date of nomination      Date of hearing        Date reported        Date confirmed   
----------------------------------------------------------------------------------------------------------------
Jesse Brown, Secretary    Jan. 20, 1993.......  Jan. 7, 1993........  Nomination placed     Jan. 21, 1993       
 of Veterans Affairs.                                                  directly on Senate                       
                                                                       calendar.                                
Hershel W. Gober, Deputy  Jan. 20, 1993.......  Jan. 22, 1993.......  Feb. 3, 1993........  Feb. 3, 1993        
 Secretary of Veterans                                                                                          
 Affairs.                                                                                                       
Jerry W. Bowen,           Mar. 27, 1993.......  May 12, 1993........  May 19, 1993........  May 20, 1993        
 Director, National                                                                                             
 Cemetery System.                                                                                               
Mary Lou Keener, General  Apr. 27, 1993.......  May 12, 1993........  May 19, 1993........  May 20, 1993        
 Counsel.                                                                                                       
Edward P. Scott,          Apr. 27, 1993.......  May 12, 1993........  May 19, 1993........  May 20, 1993        
 Assistant Secretary for                                                                                        
 Congressional Affairs.                                                                                         
D. Mark Catlett,          Apr. 27, 1993.......  May 12, 1993........  May 19, 1993........  May 20, 1993        
 Assistant Secretary for                                                                                        
 Finance and Information                                                                                        
 Resources Management.                                                                                          
Victor P. Raymond,        June 7, 1993........  July 1, 1993........  July 15, 1993.......  July 16, 1993       
 Assistant Secretary for                                                                                        
 Policy and Planning.                                                                                           
Eugene A. Brickhouse,     Sept. 7, 1993.......  Oct. 28, 1993.......  Nov. 3, 1993........  Nov. 8, 1993        
 Assistant Secretary for                                                                                        
 Human Resources and                                                                                            
 Administration.                                                                                                
Kathy Elena Jurado,       Sept. 7, 1993.......  Oct. 28, 1993.......  Nov. 3, 1993........  Nov. 8, 1993        
 Assistant Secretary for                                                                                        
 Public and                                                                                                     
 Intergovernmental                                                                                              
 Affairs.                                                                                                       
----------------------------------------------------------------------------------------------------------------


                                         DEPARTMENT OF LABOR NOMINATION                                         
----------------------------------------------------------------------------------------------------------------
    Position and name      Date of nomination      Date of hearing        Date reported        Date confirmed   
----------------------------------------------------------------------------------------------------------------
Preston M. Taylor, Jr.,   Oct. 25, 1993.......  Nov. 19, 1993.......  Nov. 19, 1993.......  Nov. 20, 1993       
 Assistant Secretary for                                                                                        
 Veterans' Employment                                                                                           
 and Training.                                                                                                  
----------------------------------------------------------------------------------------------------------------

                           b. second session

    During the Second Session, the Committee met in open 
session two times and reported two nominations to the Senate. 
The Committee also received one nomination on which no action 
was taken during the Second Session. The following table 
portrays the Committee's and the Senate's actions regarding 
these nominations:

                                   DEPARTMENT OF VETERANS AFFAIRS NOMINATIONS                                   
----------------------------------------------------------------------------------------------------------------
    Position and name      Date of nomination      Date of hearing        Date reported        Date confirmed   
----------------------------------------------------------------------------------------------------------------
Raymond John Vogel,       Nov. 16, 1993.......  Jan. 26, 1994.......  Feb. 10, 1994.......  Feb. 22, 1994       
 Under Secretary for                                                                                            
 Benefits.                                                                                                      
Linda Marie Hooks,        May 6, 1994.........                                                                  
 Assistant Secretary for                                                                                        
 Acquisition and                                                                                                
 Facilities.                                                                                                    
Kenneth W. Kizer, Under   July 29, 1994.......  Sept. 13, 1994......  Sept. 23, 1994......  Sept. 28, 1994      
 Secretary for Health.                                                                                          
----------------------------------------------------------------------------------------------------------------

                    II. Budget on Veterans Programs

                            a. first session

    On March 5, 1993, pursuant to the requirements of section 
301(d) of the Congressional Budget Act of 1974 and with the 
approval of a majority of the members of the Committee on 
Veterans' Affairs, the Committee submitted a report of its 
budget views and estimates to the Budget Committee.
    The views and recommendations expressed in this report were 
based on very limited information since, at the time of the 
submission of this report, the President had not yet completed 
his decisionmaking regarding VA's fiscal year 1994 budget. As a 
result, the Committee did not yet have the documents estimating 
and justifying expenditures for specific services and benefits 
funded from each account.
    Based on the best information then available, the Committee 
recommended that VA's fiscal year 1994 budget, in order to 
provide adequate services to the Nation's veterans, should 
include a total of approximately $800-900 million above the 
current service levels for VA discretionary accounts, including 
the $279 million for VA medical care proposed to be allocated 
in the President's health care investment package and the $235 
million in fiscal year 1993 for vital repair and maintenance 
projects at VA medical centers and other VA facilities, 
included as part of an overall stimulus package.
    The Committee report recommended that the Administration-
proposed funding levels be increased for programs in Function 
700 (Veterans' Benefits and Staffing), including medical care, 
medical and prosthetic research, and benefits programs. In 
addition, the Committee recommended increased funding levels 
above current service levels for the Department of Labor 
Veterans' Employment and Training programs in Function 500 
(Education, Training, Employment, and Social Services).
    As a part of the President's proposed economic stimulus 
package, introduced as H.R. 1335, VA would have received over 
$235 million, primarily for nonrecurring maintenance projects 
that represented the most pressing needs among the $800 million 
backlog of deferred VA maintenance projects. The Committee's 
report to the Budget Committee on March 5, 1993, strongly 
supported this proposal. On April 23, 1993, the President 
signed H.R. 1335 into law as Public Law 103-24. As enacted, the 
law did not include the President's proposed funding for VA.
    The Senate adopted the conference report on the Budget 
Resolution (H. Con. Res. 64) on Thursday, March 25, 1993, 
including the President's proposals for veterans' programs, 
without change. Section 7(b)(12) of the concurrent resolution 
directed the Committee on Veterans' Affairs to report changes 
in laws within the Committee's jurisdiction sufficient to 
reduce outlays for veterans' programs by $266 million in fiscal 
year 1994 and $2.58 billion during fiscal years 1994-1998.
    Pursuant to this requirement and in accordance with a 
unanimous, bipartisan vote of the Committee at a June 10, 1993, 
meeting, the Committee submitted legislation to the Budget 
Committee on June 15, 1993, that complied with the 
reconciliation instructions. On August 3, 1993, the Committee 
reached agreement with the House Committee on Veterans' Affairs 
on this legislation and submitted it along with a joint 
explanatory statement to the Budget Committee. The Senate-House 
compromise on this legislation was included as Title XII 
(veterans' programs) of the conference report on H.R. 2264 (H. 
Rept. 103-213), which was agreed to by the House on August 4, 
1993, and the Senate on August 6, 1993. According to the 
Congressional Budget Office (CBO), the provisions in title XII 
would produce net savings of $2.544 billion in outlays during 
fiscal years 1994-1998. H.R. 2264 was signed into law on August 
10, 1993, as Public Law 103-66, the Omnibus Reconciliation Act 
of 1993 (OBRA 93).
    Public Law 103-66 made changes in laws relating to VA 
compensation and pension, health care, VA-guaranteed home 
loans, Montgomery GI Bill educational assistance, and other 
veterans' programs. Detailed explanations of these provisions 
are included in this report under the appropriate subject.

                           b. second session

    On March 10, 1994, the Committee held a hearing on the 
budget for veterans' programs for fiscal year 1995. On March 
14, 1994, pursuant to the requirements of section 301(d) of the 
Congressional Budget Act of 1974 and with the approval of a 
majority of the members of the Committee on Veterans' Affairs, 
the Committee submitted a report of its budget views and 
estimates to the Budget Committee.
    The Committee's report recommended funding increases above 
the Administration-requested levels. The Committee recommended 
fiscal year 1995 funding for the Medical and Prosthetic 
Research account of $252 million, an increase of $41 million 
over the Administration request of $211 million, in order to 
restore the funding level for this account to the fiscal year 
1994 level.
    The Committee recommended that sufficient funds be added to 
the General Operating Expenses account to increase the staffing 
level for the Veterans Benefits Administration by 622 FTEE 
(approximately $30 million), specifically for veterans services 
and claims processing, in an effort to ensure that the VA 
adjudication system's timeliness would not further deteriorate 
due to severe understaffing.
    The Committee's report also noted with disapproval the 
Administration's proposal to shift $225 million in funding for 
eight critical new VA ambulatory care facilities from Function 
700 of the budget to the health care investment fund which 
would have been created under the proposed ``Health Security 
Act.''

        III. Service-Connected Compensation and Related Programs

                              a. overview

    VA's disability compensation program provides monthly 
payments to veterans who, because of service-connected 
disabilities, have impairments of earning capacity. The amount 
paid depends on the nature of the veteran's disability, or 
combination of disabilities, and the extent to which earning 
capacity is deemed to have been impaired. As of the end of 
fiscal year 1994, an estimated 2.2 million veterans received 
compensation benefits.
    VA pays dependency and indemnity compensation (DIC) 
benefits to surviving spouses and children of veterans who die 
during active duty or from a service-connected condition. This 
benefit is intended to compensate for the loss of family 
income. At the end of fiscal year 1994, an estimated 338,019 
survivors received benefits under this program.
    Congress also has established programs to meet certain 
specific needs of service-disabled veterans, including grants 
for specially adapted housing and adaptive automobile 
equipment.
    The Committee is concerned that benefits be adjusted 
appropriately to keep pace with inflation, and paid in all 
cases in which the veteran's death or disability reasonably may 
have been incurred or aggravated during the veteran's service. 
The Committee also is concerned that all reasonably feasible 
scientific studies necessary to determine whether veterans 
incurred disabilities as a result of exposure to hazardous 
substances or psychological stress be undertaken, and the 
administration of the system for adjudicating claims for 
compensation benefits be fair and efficient. In the course of 
the 103rd Congress, the Committee conducted hearings on these 
and other issues involving the need for improvements in these 
programs.

                            b. first session

    On March 18, 1993, Chairman Rockefeller introduced S. 616, 
the proposed ``Veterans' Compensation Cost-of-Living Adjustment 
Act 1993,'' a bill to increase the rates of compensation for 
veterans with service-connected disabilities and the rates of 
dependency and indemnity compensation for survivors of certain 
disabled veterans. On March 24, 1993, the Committee held a 
hearing on the veterans' compensation cost-of-living adjustment 
(COLA) for fiscal year 1994. The Committee received testimony 
from VA and various veterans service organizations. On June 15, 
1993, the Committee reported S. 616 (S. Rept. 103-55) with 
amendments. S. 616 passed the Senate on July 14, 1993. The 
House passed the bill by voice vote on November 2, 1993, 
substituting the provisions of a similar measure, H.R. 3340. 
The amended version of S. 616 passed the Senate on November 4, 
1993. On November 11, 1993, the President signed S. 616 into 
law as Public Law 103-140, the Veterans' Compensation Cost-of-
Living Adjustment Act for 1993. Public Law 103-140 provided a 
2.6 percent COLA, rounded down to the nearest dollar, pursuant 
to Public Law 103-66 (OBRA 93, discussed above in section 
II.A.), effective December 1, 1993, in the rates of service-
connected disability compensation and in the rates of DIC paid 
under Public Law 102-568 (the so-called ``new law'' DIC). As 
provided for in OBRA 93, Public Law 103-140 also specified that 
recipients of DIC paid under the law in effect prior to the 
enactment of Public Law 102-568 (the so-called ``old law'' DIC) 
would receive half the COLA paid to ``new law'' DIC recipients, 
rounded down to the nearest dollar.
    On May 18, 1993, Chairman Rockefeller introduced S. 970, a 
bill to amend title 38, United States Code, to codify the 
fiscal year 1993 rates of compensation and DIC that took effect 
on December 1, 1992. On June 30, 1993, the Committee reported 
S. 970 (S. Rept. 103-81) to the Senate without amendment. On 
April 27, 1993, the House passed a companion bill, H.R. 798 (H. 
Rept. 103-63), and on July 28, 1993, the Senate substituted S. 
970 as amended and passed H.R. 798 in lieu of S. 970 by voice 
vote. On August 2, 1993, the House agreed to the Senate 
amendment. On August 13, 1993, the President signed H.R. 798 
into law as Public Law 103-78, the Veterans' Compensation Rates 
Codification Act of 1993.
    As required by the Agent Orange Act of 1991, Public Law 
102-4, VA entered into a contract in 1991 with the National 
Academy of Sciences (NAS) to conduct a review of the scientific 
and medical evidence on the health effects of exposure to 
herbicides used in Vietnam. The NAS committee that conducted 
the review released its report on July 27, 1993. On the same 
day, the Committee held a hearing on the NAS report.
    Public Law 102-4 required the Secretary of Veterans Affairs 
to determine within 60 days following the issuance of the 
report which of the diseases considered by the NAS committee 
are associated with exposure to Agent Orange or other 
herbicides used in Vietnam and whether those diseases in 
Vietnam veterans should be presumed to be service connected. On 
September 28, 1993, the Committee received the determinations 
reached by the Secretary under the mandate of Public Law 102-4.
    On November 2, 1993, the staff of the Committee conducted a 
staff forum, taking the testimony of several scientists who 
have conducted research on the health effects of dioxin. The 
purpose of this staff forum was to follow up on the 
determinations of the Secretary to establish presumptive 
service connection for some diseases and not to establish 
presumptive service connection for others, and to explore the 
directions that should be taken with respect to future research 
on the health effects of herbicides.

                           c. second session

               1. Compensation Cost-of-Living Adjustment

    On March 3, 1994, Senator Rockefeller introduced S. 1927, 
the proposed ``Veterans' Compensation Cost-of-Living Adjustment 
Act of 1994,'' a bill to increase the rates of compensation for 
veterans with service-connected disabilities, and the rates of 
dependency and indemnity compensation for survivors of certain 
disabled veterans, by the same percentage as the COLA provided 
to Social Security recipients and VA pension beneficiaries. On 
March 24, 1994, the Committee held a hearing on S. 1927 and 
other pending legislation. The Committee received testimony 
from VA and various veterans service organizations. On April 
14, 1994, the Committee voted unanimously to report S. 1927 
with a technical amendment, and on April 26, 1994, the bill was 
reported (S. Rept. 103-254).
    The Senate passed S. 1927 by voice vote on May 4, 1994. The 
House passed S. 1927 by voice vote on August 8, 1994, with an 
amendment in the nature of a substitute which included a 
provision concerning a compensation COLA for fiscal year 1995. 
On October 6, 1994, the Senate passed S. 1927 with a compromise 
amendment by voice vote and the House passed the bill, as 
amended, on October 7, 1995. On October 25, 1994, the President 
signed S. 1927 into law as Public Law 103-418, the Veterans' 
Compensation Cost-of-Living Adjustment Act of 1994.
    Public Law 103-418 provides a compensation COLA, at the 
same percentage as the fiscal year 1995 COLA for Social 
Security and VA pension benefits, effective December 1, 1994, 
in the rates of service-connected disability compensation and 
in the rates of DIC. Pursuant to cost-savings provisions 
contained in Public Law 103-446 (described below under the 
heading ``Compensation for Persian Gulf War Veterans''), these 
rates are rounded down to the nearest whole dollar where the 
amount of the increased rate would be less than a whole-dollar 
amount.

             2. Compensation for Persian Gulf War Veterans

    On September 14, 1994, the Committee held a hearing and 
received testimony relating to, among other matters, two 
bills--S. 2330, introduced by Chairman Rockefeller on July 27, 
1994, and S. 2178, introduced by Senator Thomas A. Daschle on 
June 10, 1994--relating to compensation for Persian Gulf War 
veterans.
    On September 23, 1994, the Committee voted unanimously to 
report favorably S. 2330, with an amendment in the nature of a 
substitute, containing provisions derived from S. 2330 and S. 
2178.
    Earlier, on August 8, 1994, the House passed H.R. 4386, the 
proposed ``Veterans' Persian Gulf War Benefits Act.'' On 
October 7, 1994, the House, in lieu of further action on H.R. 
4386 or S. 2330, passed H.R. 5244, with an amendment 
incorporating a compromise agreement developed by the House and 
Senate Committees on Veterans' Affairs, including provisions 
related to compensation for Persian Gulf War veterans for 
undiagnosed illnesses. The Senate concurred in the bill as 
amended on October 8, 1994. The President signed the bill into 
law as the Veterans' Benefits Improvement Act of 1994, Public 
Law 103-446, on November 2, 1994.
    Title I of Public Law 103-446:
    1. Provided the Secretary with authority to pay 
compensation to any Persian Gulf War veteran suffering from a 
disability resulting from an undiagnosed illness that became 
manifest during active duty or to a degree of 10 percent or 
more within a period to be determined by the Secretary, and 
required the Secretary to report to Congress as to whether 
compensation will be paid under this authority.
    2. Required the Secretary to publish proposed regulations 
under which compensation would be paid if the Secretary 
determines that compensation should be paid to these Persian 
Gulf War veterans.
    3. Required the Secretary to determine the appropriate 
period of time following service in the Southwest Asia theater 
of operations for a presumption of service connection.
    4. Required that the regulations issued by the Secretary 
include a description of the particular military service 
involved, the illnesses for which compensation may be paid, and 
the relevant medical characteristics associated with the 
illnesses.
    5. Required the Secretary to develop and implement a 
comprehensive outreach program to inform Persian Gulf veterans 
and their families of medical care and other benefits that may 
be available to them from VA and DOD. The outreach program 
would include a semiannual newsletter to be prepared in 
consultation with veterans service organizations, and a toll-
free number to provide any other information the Secretary 
considers appropriate.
    6. Permitted surviving spouses eligible to receive 
dependency and indemnity compensation (DIC) under chapter 13 of 
title 38 to elect to receive death pension under chapter 15 in 
lieu of DIC.
    7. Provided that, with respect to any cost-of-living 
adjustment in the rates of compensation and DIC provided for 
fiscal year 1995, all increased rates (other than those equal 
to a whole dollar amount) must be rounded down to the next 
lower dollar.

             3. Compensation Related to Radiation Exposure

    At the Committee's March 24, 1994, hearing (discussed 
above), the Committee received testimony on S. 1906, a bill 
introduced by Chairman Rockefeller on March 8, 1994, to provide 
that service connection for disabilities arising from exposure 
to ionizing radiation may be established by direct evidence. At 
the Committee's April 14, 1994, meeting, the Committee voted 
unanimously to report S. 1908, as amended, incorporating the 
provisions of several bills, including S. 1906.
    As reported on June 7, 1994 (S. Rept. 103-280), title III 
of S. 1908 contained a provision to amend Public Law 98-542 to 
overrule the decision of the United States Court of Veterans 
Appeals in Combee v. Principi, 4 Vet. App. 78 (1993), to 
clarify that any regulations prescribed under Public Law 98-542 
may not preclude a veteran from establishing service connection 
under section 1110 of title 38, United States Code, for a 
condition based on radiation exposure.
    As discussed above (under the heading ``Compensation for 
Persian Gulf War Veterans''), the House, on October 7, 1994, 
passed H.R. 5244, with an amendment incorporating a compromise 
agreement developed by the two Committees on Veterans' Affairs. 
The Senate concurred in the bill as amended on October 8, 1994, 
and the President signed the bill into law as Public Law 103-
446 on November 2, 1994.
    The provisions of Public Law 103-446 concerning 
compensation related to radiation exposure: 1. Clarified that, 
for the purposes of a presumption of service connection based 
on exposure to ionizing radiation, participation in atmospheric 
testing of nuclear devices includes non-U.S. tests. 2. 
Clarified that provisions of law requiring VA to establish a 
procedure for claims based on exposure to ionizing radiation 
may not be construed to prevent the establishment of service 
connection on a direct basis.

            4. Compensation Related to Agent Orange Exposure

    Public Law 103-446 also includes provisions concerning 
compensation related to Agent Orange exposure. These provisions 
codified the presumptions of service connection based on 
exposure to herbicides for the following diseases: Hodgkin's 
disease, porphyria cutanea tarda, respiratory cancers (lung, 
trachea, bronchus, and larynx), and multiple myeloma. These 
presumptions were established administratively by the Secretary 
in 1993 and 1994, pursuant to the Agent Orange Act of 1991.

               IV. Non-Service-Connected Pension Programs

                              a. overview

    VA pension programs provide needs-based income security 
benefits to wartime veterans who are totally and permanently 
disabled from nonservice-connected causes, or who have become 
unemployable, and to the needy surviving spouses and children 
of wartime veterans.
    As of September 1994, an estimated 440,787 veterans, 
391,077 surviving spouses, and 37,029 surviving children were 
in receipt of VA pension.

                            b. first session

    The provisions of Public Law 103-66 (OBRA 93, discussed 
above in section II.A.) relating to VA pension programs:
    1. Extended, through September 30, 1998, VA's current 
authority to verify eligibility for VA need-based benefits 
using income information provided by the Internal Revenue 
Service and the Social Security Administration.
    2. Extended, through September 30, 1998, the current $90-a-
month limitation on pension benefits paid to Medicaid-eligible 
veterans and surviving spouses who are in nursing homes and who 
have no dependents.

                           c. second session

    On March 24, 1994, the Committee held a hearing to consider 
testimony on, among other matters, S. 1626, which contained 
provisions derived from S. 1958, relating to pension payments 
to certain veterans, as introduced by Senator Murkowski on 
March 22, 1994. On April 14, 1994, the Committee met in open 
session and voted to report favorably S. 1626, and on May 23, 
1994, reported the legislation (S. Rept. 103-267). Provisions 
from S. 1626 were incorporated into H.R. 3313 as an amendment 
and the bill was passed by the Senate on June 8, 1994. As 
discussed above (in section III.C.), the House, on October 7, 
1994, passed H.R. 5244 with an amendment in the nature of a 
substitute reflecting a compromise agreement developed between 
the two Committees on Veterans' Affairs. On November 2, 1994, 
the President signed H.R. 5244 into law as Public Law 103-446.
    The provision of Public Law 103-446 pertaining to 
nonservice-connected pension programs excluded payments 
received by individuals from Alaska Native corporations under 
the Alaska Native Claims Settlement Act (ANCSA) from the 
calculation of income for purposes of determining eligibility 
for VA pension, but only to the extent that these payments were 
excluded for purposes of other means-tested Federal benefits 
programs as specified in ANCSA.

                             V. Health Care

                              a. overview

    VA administers a national health care network which 
provides a complete medical and hospital service for the 
medical and rehabilitative care and treatment of eligible 
veterans. The VA health care system is an integrated national 
system of teaching hospitals, general and specialty clinics, 
research centers, nursing homes, readjustment counseling 
centers, and other facilities providing a broad range of 
inpatient and outpatient health care services to eligible 
veterans.
    VA provides health care through 171 hospitals, 364 
outpatient clinics, 128 nursing home units, and 37 domiciliary 
care facilities. As part of its national health care network, 
the VA health care system also provides mental health services 
to eligible veterans through 201 readjustment counseling 
centers (Vet Centers) and a broad range of inpatient and 
outpatient services. In fiscal year 1994, VA hospitals provided 
inpatient care to 906,925 veterans and conducted 25,442,540 
outpatient visits; VA nursing home care and domiciliary care 
units provided care to 49,190 veterans; hospitals and nursing 
homes under contract to VA provided care to 49,473 veterans; 
and State veterans' facilities provided care with VA assistance 
to 26,382 veterans.
    In addition, CHAMPVA--the Civilian Health and Medical 
Program of the Department of Veterans Affairs--provided 
reimbursements for the cost of health care services, or 
furnished such care, to spouses and dependent children of 
veterans who have permanent and total service-connected 
disabilities and to the survivors of veterans who either die as 
a result of a service-connected disability or at the time of 
death have a permanent and total service-connected disability.
    Finally, section 8104(a)(2) of title 38, United States 
Code, provides that no funds may be appropriated for any fiscal 
year, and the Secretary of Veterans Affairs may not obligate or 
expend funds (other than for advance planning and design), for 
any major medical facility project or any major medical 
facility lease, unless funds for that project or lease have 
been specifically authorized by law.

                            b. first session

                         1. General Health Care

    The Committee held a series of hearings on VA health care 
in anticipation of activity relating to overall national health 
care reform efforts and legislation.
    On March 5, 1993, the Committee held a hearing to review 
the present and future role of the VA health care system in 
American health care. The Committee received testimony from 
witnesses with knowledge of the VA health care system, 
including witnesses representing the National Rural Health 
Association, the Commission on the Future Structure of Veterans 
Health Care, the Institute of Medicine of the National Academy 
of Sciences, and the Association of American Medical Colleges.
    On March 31, 1993, the Committee held a hearing on factors 
affecting veterans' demand for health care services and on 
comparisons between VA and non-VA health care costs. The 
Committee received testimony from academic and health industry 
experts, as well as the Paralyzed Veterans of America, the 
General Accounting Office, and the VA Inspector General 
regarding their respective organizations' views and findings on 
issues relating to demand for VA care and the cost of such 
care.
    On April 27, 1993, the Committee held a hearing on 
veterans' and health care professionals' views on the present 
and future role of the VA health care system. The Committee 
received testimony from various veterans service organizations 
and from providers of VA health care.
    On May 19, 1993, the Committee held a hearing on VA's roles 
in geriatrics and long-term care. The Committee received 
testimony from VA patients, VA health care professionals, and 
outside experts in geriatrics, family medicine, and psychiatry.
    On July 19, 1993, the Committee held a field hearing in 
Beckley, WV, to engage in oversight of VA health care programs 
operating in West Virginia and to review the needs of veterans 
living in geographically remote areas. The Committee received 
testimony from the Secretary of Veterans Affairs, VA health 
care professionals, and various veterans service organizations.
    On June 23, 1993, the Committee held a hearing to consider 
various health care bills--S. 452, S. 852, S. 1030, S. 1094, S. 
1122, S. 1194, a draft of the Veterans' Hospices Services Act 
of 1993, and a draft of the Women Veterans Health Care Act. S. 
452, legislation introduced by Senator Kent Conrad, would have 
established a rural health care clinic program. S. 852, 
legislation also introduced by Senator Conrad, would have 
authorized VA to provide per diem payments and construction 
grants to State Veterans Homes for adult day health care. S. 
1030, introduced by Chairman Rockefeller, would have extended 
VA's sexual trauma counseling program and other programs for 
women veterans. S. 1094, introduced by Committee member Thomas 
A. Daschle, would have extended the period of entitlement to VA 
care for veterans exposed to Agent Orange and radiation. S. 
1122, introduced by Senator Barbara A. Mikulski, would have 
established an educational loan repayment program for certain 
VA health care professionals. The Veterans Hospice Services 
Act, later introduced by Chairman Rockefeller as S. 1194, would 
have established a pilot program to furnish comprehensive 
hospice care services. The Women Veterans Health Care Act would 
have authorized VA to furnish comprehensive reproductive health 
care services. The Committee received testimony from VA, 
various veterans service organizations, and Senators Conrad and 
Mikulski.
    The Committee met in open session on July 15, 1993, to 
consider, among other things, a Committee Print of S. 1030 
incorporating provisions derived from the above-mentioned 
measures. The Committee voted to report S. 1030 favorably to 
the Senate with an amendment proposed by Committee members 
Daschle and James M. Jeffords, relating to VA health care for 
veterans of the Persian Gulf War. The Committee reported S. 
1030 (S. Rept. 103-136) on September 8, 1993. There was no 
further action on this legislation during the First Session.
    Public Law 103-66 (OBRA 93, discussed above in section 
II.A.), which was signed into law on August 13, 1993, contained 
provisions relating to VA health care programs which:
    1. Extended, through September 30, 1998, the Department of 
Veterans Affairs' current authority to collect copayments from 
certain veterans for certain medical care and outpatient 
medications.
    2. Extended, through September 30, 1998, VA's current 
authority to recover from a veteran's private medical insurance 
the cost of medical care VA provides for nonservice-connected 
conditions.
    On October 13, 1993, the Committee held a hearing on the 
role of VA under President Clinton's proposed national health 
care reform plan. The Committee received testimony from the 
Secretary of Veterans Affairs.
    On November 16, 1993, the Committee held a hearing to 
address the health problems that Persian Gulf War veterans are 
experiencing. The Committee took testimony from Senator Donald 
W. Riegle, Jr., Secretary of Veterans Affairs Jesse Brown, 
other VA and DOD officials, several scientists, and Persian 
Gulf War veterans experiencing health problems.
    Earlier, on August 2, 1993, the House passed H.R. 2535, 
legislation relating to, among other things, health care for 
Persian Gulf War veterans. On November 20, 1993, the Senate 
passed H.R. 2535 with an amendment which represented a 
compromise developed by the House and Senate Committees on 
Veterans' Affairs. The House passed the compromise agreement on 
November 22, 1993, and the President signed H.R. 2535 on 
December 20, 1993, as Public Law 103-210.
    The provisions of Public Law 103-210 relating to VA health 
care programs:
    1. Established access to VA medical care for veterans of 
the Persian Gulf war through December 31, 1994.
    2. Extended, until June 30, 1994, entitlement to priority 
VA medical care to veterans exposed to Agent Orange and other 
herbicides or ionizing radiation.
    3. Extended eligibility for sexual trauma counseling 
through December 31, 1994.
    4. Authorized VA to enter into agreements with State 
veterans facilities for the sharing of health care resources.

                            2. Mental Health

    On July 14, 1993, Senator Akaka introduced S. 1226, the 
proposed ``Readjustment Counseling Service Amendments of 
1993.'' As introduced, S. 1226 would have, among other things, 
established the Readjustment Counseling Service (RCS) as a 
statutory organization within VA, expanded entitlement to RCS 
services to all veterans, regardless of period of service, and 
provided entitlement to bereavement counseling to the family 
members of those who died on active duty.
    On September 30, 1993, Senator Rockefeller introduced S. 
1512, the proposed ``VA Mental Health Care Improvement Act of 
1993.'' As introduced, S. 1512 would have established up to 
five centers of mental illness research, education, and 
clinical activities at existing VA health care facilities.
    On August 3, 1993, the Committee held a hearing to receive 
testimony on legislation relating to veterans' mental health, 
including S. 1226 and S. 1512. The Committee received testimony 
from VA Central Office officials, VA Readjustment Counseling 
Service Regional Managers and Team Leaders, and various 
veterans service organizations.
    On November 3, 1993, the Committee met in open session to 
consider a Committee Print of S. 1226 derived from the bill as 
introduced. The Committee voted by unanimous voice vote to 
report S. 1226 with an amendment in the nature of a substitute 
derived from the bill as introduced with minor revisions. At 
the same meeting, the Committee voted unanimously to report S. 
1512 with an amendment in the nature of substitute derived from 
the bill as introduced with minor revisions. There was no 
further action with reference to either bill in the First 
Session.

                    3. Medical Facility Acquisition

    The Committee held a hearing on May 6, 1993, to review the 
VA construction program and the Secretary's request for 
authorization of medical facility construction projects for 
fiscal year 1994. The Committee received testimony from the 
Secretary, the General Accounting Office, Paralyzed Veterans of 
America, and the former Executive Director of VA's Commission 
on the Future Structure of Veterans' Health Care.
    On May 19, 1993, the Committee met and ordered reported S. 
1079, an original bill authorizing major facility projects and 
leases for fiscal year 1994. The Committee reported this 
measure (S. Rept. 103-53) on June 8, 1993. On May 18, 1993, the 
House passed H.R. 2034, which, among other things, authorized 
VA medical facility construction projects and leases. The 
Senate passed H.R. 2034 on July 14, 1993, incorporating the 
provisions of S. 1079 as a substitute amendment. On August 6, 
1993, both the House and Senate passed a compromise agreement 
on H.R. 2034 relating to the authorization of VA construction 
projects and leases for fiscal year 1994. This legislation was 
signed into law as Public Law 103-79 on August 13, 1993. This 
law contains provisions that:
    1. Authorized VA to enter into the major medical facility 
leases for which funds were requested in the President's budget 
for fiscal year 1994.
    2. Authorized the following VA major medical projects, in 
the amounts specified: (1) Construction in accordance with an 
agreement between the Secretary of the Air Force and the 
Secretary of Veterans Affairs of a medical facility at 
Elmendorf Air Force Base, Anchorage, AK, to be shared by the 
Air Force and VA, $11,500,000; (2) construction of a 
psychiatric building at the VA Medical Center in Lyons, NJ, 
$41,700,000; (3) modernization and seismic correction at the VA 
Medical Center in Memphis, TN, $10,700,000; (4) construction of 
a replacement bed building at the VA Medical Center in 
Muskogee, OK, $33,200,000; (5) construction of an outpatient 
care addition and parking garage at the VA Medical Center in 
San Juan, PR, $46,000,000; and (6) construction, or expansion 
and modernization, of a 120-bed nursing home facility in the 
Chesapeake network area (the site to be selected by the 
Secretary).
    3. Required the Secretary, in selecting the site for the VA 
major medical facility project in the Chesapeake network, to 
conduct a study to determine the most appropriate location for 
that facility.
    4. Authorized to be appropriated to the Secretary of 
Veterans Affairs for fiscal year 1994 (1) $143,100,000 for the 
major medical facility projects authorized in the law and such 
sums as may be necessary for the nursing home facility in the 
Chesapeake network, but not to exceed $14,500,000 in the case 
of construction of nursing home beds in Baltimore, MD, as 
proposed in the President's budget for VA for fiscal year 1994; 
and (2) $50,123,105 for the authorized major medical facility 
leases.
    5. Limited the authorized projects to be carried out only 
using (1) specifically authorized major construction funds 
appropriated for fiscal year 1994; (2) funds appropriated for 
Construction, Major Projects, for a fiscal year before fiscal 
year 1994 that remain available for obligation; and (3) funds 
appropriated for Construction, Major Projects, for fiscal year 
1994 for a category of activity not specific to a project.
    6. Changed the statutory definition of a ``major medical 
facility project'' from one costing at least $2,000,000 to one 
costing at least $3,000,000.
    7. Changed the statutory definition used for determining if 
a parking facility at a medical facility is a major medical 
facility project from one costing at least $2,000,000 to one 
costing at least $3,000,000.
    8. Extended the Secretary's lease authority under the 
Veterans' Benefits Programs Improvement Act of 1991 (36 U.S.C. 
493) for Pershing Hall, France, from 35 years to 99 years as 
the maximum period of lease.

                           c. second session

                         1. General Health Care

    On February 9, 1994, the Committee held a hearing to review 
VA participation in State health care reform programs. The 
Committee received testimony from witnesses with knowledge of 
the VA health care system, including directors and chiefs of 
staff of VA medical centers in five States that were active in 
the area of health care reform: Florida, Minnesota, Tennessee, 
Vermont, and Washington State. VA officials and a 
representative of the Paralyzed Veterans of America also 
testified. Following this hearing and taking into account the 
testimony at the hearing, Chairman Rockefeller introduced S. 
1974, the proposed ``VA State Health Care Reform Pilot Program 
Act.''
    The Committee met in open session on April 14, 1994, to 
consider, among other items, S. 1974. The Committee voted to 
report S. 1974 to the Senate with an amendment in the nature of 
a substitute. On May 23, 1994, the Committee reported S. 1974 
(S. Rept. 103-268). On June 8, 1994, S. 1974 was incorporated 
into a companion measure, H.R. 4013, and was passed by the 
Senate. There was no further action on this legislation in the 
103rd Congress.
    On May 5, 1994, the Committee held a hearing on the 
financing of health care reform for VA. The Committee received 
testimony from two experts in health policy, as well as VA 
officials who work on financing issues at VA and GAO staff, 
regarding their findings on issues relating to the financial 
planning for the future of VA health care.
    On May 6, 1994, the Committee held a hearing on the health 
effects of secret military research and other intentional 
exposures of military personnel to environmental hazards. The 
Committee received testimony from officials from the Department 
of Defense, the Department of Veterans Affairs, and the Food 
and Drug Administration, as well as veterans from World War II, 
the Persian Gulf War, and the Dugway Proving Grounds, a 
military facility in Utah. Experts on the potential health 
effects of intentional exposures also testified.
    On July 7, 1994, the Committee held a field hearing in 
Denver, CO, to review health and compensation issues for 
Persian Gulf War veterans. The Committee received testimony 
from Persian Gulf War veterans, officials from DOD and VA, and 
health care administrators at VA and military hospitals.
    The Committee met in open session on July 14, 1994, to 
consider a Committee Print of legislation relating to VA and 
VA's role in overall national health care reform. The Committee 
voted to report such legislation, and on July 21, 1994, it was 
reported to the Senate without written report as S. 2309, the 
proposed ``Veterans Health Care Reform Act of 1994.'' Due to 
opposition to a larger health care reform bill, there was no 
Senate consideration of the bill before the end of the 103rd 
Congress.
    On August 5, 1994, the Committee held an oversight hearing 
on the reproductive hazards associated with military service. 
The Committee received testimony from veterans and their wives 
and widows, as well as university scientists and scientists 
from the GAO. Administration witnesses represented VA, DOD, the 
Centers for Disease Control and Prevention, and the 
Environmental Protection Agency.
    Earlier, on July 26, 1994, the Senate approved S. 1030, as 
reported in September 1993 (discussed above in section V.B.1), 
by unanimous consent with an amendment. On October 8, 1994, the 
Senate approved H.R. 3313, with provisions derived from S. 
1030. On November 2, 1994, the President signed H.R. 3313 into 
law (Public Law 103-452). The provisions in Public Law 103-452 
relating to general health care:
    1. Extended the period of authority for VA to provide 
health care for veterans exposed to dioxin and radiation until 
June 30, 1995, and health care to Persian Gulf War veterans 
until December 31, 1995.
    2. Extended the period of authority for VA to provide 
sexual trauma counseling and services until December 31, 1998.
    3. Repealed the restriction in current law which requires 
women veterans to seek sexual trauma counseling within two 
years of discharge from active duty, and the one-year time 
limit during which a veterans could receive VA care in 
connection with a sexual trauma.
    4. Required VA to establish a toll-free telephone number to 
provide information about VA's sexual trauma services.
    5. Improved and expanded VA research relating to women 
veterans' health care concerns.
    6. Extended VA's pilot program for alternatives to nursing 
home care.
    7. Extended certain expiring authorities regarding drug and 
alcohol abuse and dependence treatments, and enhanced-use 
leases.
    As discussed above (in section III.C.), the Senate, on 
October 8, 1994, passed H.R. 5244, which contained several 
provisions relating to the health of Persian Gulf War veterans 
and atomic veterans. The legislation was signed as Public Law 
103-446. The provisions of Public Law 103-446 relating to the 
health of Persian Gulf War veterans and atomic veterans:
    1. Authorized the development and implementation of a 
medical evaluation protocol for Gulf War veterans, to include 
reproductive function.
    2. Required VA to include spouses and offspring in the 
Persian Gulf War Health Registry, if they have illnesses or 
birth defects that may be related to the veteran's service in 
the Gulf War. Inclusion is voluntary, and the costs of medical 
examinations are to be paid by VA.
    3. Authorized epidemiological research on Gulf War 
veterans.
    4. Required VA to enter into a contract with the Institute 
of Medicine of the National Academy of Sciences, or similar 
agency, to evaluate the feasibility of a study of reproductive 
problems among atomic veterans.

                            2. Mental Health

    The Committee took further action on two bills--S. 1226 and 
S. 1512--that were ordered reported in the First Session.
    The Committee filed a report on S. 1226 (S. Rept. 103-236) 
on March 15, 1994. On March 24, 1994, the Senate agreed to S. 
1226 as reported with an amendment by Senator Patrick J. Leahy 
relating to readjustment counseling for family members of POWs 
and MIAs. There was no further action on this legislation in 
the 103rd Congress.
    The Committee filed a report on S. 1512 (S. Rept. 103-237) 
on March 17, 1994. On March 24, 1994, the Senate agreed to S. 
1512 as reported. There was no further action on this 
legislation in the 103rd Congress.
    Public Law 103-452 (discussed above under subsection 1 of 
this section) reauthorized for one year VA's authority to 
contract with non-VA halfway houses for rehabilitation services 
for veterans with substance abuse problems.

                    3. Medical Facility Acquisition

    During the Committee's March 10, 1994, hearing on VA's 
fiscal year 1995 budget, the Committee took testimony on VA's 
construction program and the Secretary's request for 
authorization of medical facility construction projects for 
fiscal year 1995.
    On June 9, 1994, the Committee met and ordered reported S. 
2277, an original bill authorizing major facility projects and 
leases for fiscal year 1995. The Committee reported this 
measure to the Senate on July 12 without written report. On 
August 19, 1994, S. 2277 was passed by the Senate. Earlier, on 
May 23, 1994, the House passed H.R. 4425, which, among other 
things, authorized VA medical facility construction projects 
and leases for fiscal year 1995. A compromise agreement drawn 
from S. 2277 and H.R. 4425 relating to the authorization of 
construction projects and leases for fiscal year 1995 was 
incorporated into title V of H.R. 3313, which, as discussed 
above (in subsection 1 of this section), was signed as Public 
Law 103-452 on November 2, 1994. The provisions of Public Law 
103-453 relating to VA construction authorization:
    1. Authorized the Secretary of Veterans Affairs to carry 
out the VA major medical facility projects and leases requested 
in the fiscal year 1995 budget that the President submitted to 
Congress.
    2. Authorized the Secretary to carry out additional 
projects including: (1) Eight ambulatory care projects that 
were listed in the documents submitted with the budget for 
fiscal year 1995 to be financed with the proposed Investment 
Fund to be created under the proposed ``Health Security Act''; 
(2) two nursing home projects and one outpatient clinic that 
were not requested in the budget but which were highly rated by 
VA and were added by the Committees; and (3) a project to 
replace and repair the earthquake-damaged facility at 
Sepulveda, CA.
    3. Authorized to be appropriated to the Secretary for 
fiscal year 1995, $379,370,000 for the newly authorized VA 
major medical facility projects.
    4. Authorized to be appropriated to the Secretary for 
fiscal year 1995, $15,800,000 for the authorized major medical 
facility leases.
    5. Limited the funds that may be used for such construction 
to funds appropriated for fiscal year 1995; funds appropriated 
for Construction, Major Projects, for a fiscal year before 
fiscal year 1995 that remain available for obligation; and 
funds appropriated for Construction, Major Projects, for fiscal 
year 1995 for a category of activity not specific to a project.

                        VI. Educational Benefits

                              a. overview

    VA readjustment benefits consist of various types of 
educational assistance for eligible veterans, dependents, and 
survivors. The main purposes of such assistance are to help the 
veteran readjust to civilian life in a productive capacity, to 
compensate for the loss of educational or vocational 
opportunities during the veteran's period of service to the 
Nation, to provide incentives for military service, and to 
provide vocational rehabilitation opportunities to those whose 
ability to obtain employment has been impaired as a result of 
service-connected disability.
    Educational assistance is also provided by VA to dependents 
of those veterans having permanent and total service-connected 
disabilities and to the survivors of those whose deaths were 
service connected. Such assistance to these survivors and 
dependents is intended to compensate for service-connected 
impairment of the veteran's ability to bear the cost of 
education of his or her family members and, in the case of the 
veteran's death, to assist the surviving spouse in attaining 
economic self-sufficiency.
    Vocational rehabilitation opportunities are provided under 
chapter 31 of title 38, United States Code, to service-
connected disabled veterans. Until its expiration on December 
31, 1989, educational assistance was provided under chapter 34 
of title 38 to eligible Vietnam-era veterans and to other 
veterans and servicemembers who served during the period 
beginning February 1, 1955, and ending December 31, 1976, who 
were otherwise eligible. Survivors and dependents of those 
veterans whose deaths or permanent and total disabilities are 
service connected are eligible for educational assistance under 
chapter 35. Under chapter 32, post-Vietnam-era veterans (those 
entering the service after December 31, 1986, and otherwise 
eligible) are entitled to participate in an educational 
assistance program wherein participants contribute up to $2,300 
to an education account. These contributions are then matched 
by the Department of Defense on a two-for-one basis when the 
veteran enrolls in an approved course of education. Under 
chapter 30, educational assistance is provided to members of 
the All-Volunteer Force who first entered active duty after 
June 30, 1985, and did not elect not to participate in this 
program. The rate of basic pay of those who participate is 
reduced by $100 for each of the first 12 months of their 
active-duty service.
    In addition, VA administers a program of educational 
assistance under chapter 106 of title 10, funded by the 
Departments of Defense and Transportation, of educational 
assistance for members of the selected reserve.
    Of the estimated 497,464 persons pursuing education or 
training under VA-administered programs in fiscal year 1994, 
approximately 40,260 were spouses, surviving spouses, sons, and 
daughters receiving benefits under chapter 35; 44,229 were 
service-disabled veterans enrolled in rehabilitation under 
chapter 31; 25,529 were post-Vietnam-era veterans and 
servicemembers participating in training under chapter 32; 
284,108 were All-Volunteer Force servicemembers and veterans 
receiving benefits under chapter 30; and 103,061 were 
reservists receiving benefits under chapter 106 of title 10.

                            b. first session

    The provision of Public Law 103-66 (OBRA 93, discussed 
above in section II.A.) relating to VA education programs 
eliminated the automatic increase for Montgomery GI Bill 
educational assistance for fiscal year 1994 and limited the 
increase in fiscal year 1995 to half of the percentage that 
would have been provided under the statutory formula.
    The provision of Public Law 103-210 (discussed above in 
section V.B.) relating to VA education programs extended the 
authority for the VA Advisory Committee on Education through 
December 31, 1994.

                           c. second session

    On August 8, 1994, the House passed H.R. 4768 providing for 
improvements in VA education programs. The Committee took 
written testimony from the Secretary and veteran service 
organizations regarding this legislation on September 14, 1994. 
At the hearing, the Committee also took testimony on S. 2094, a 
bill to make permanent the authority of the Secretary to 
approve basic educational assistance for flight training. 
Provisions derived from H.R. 4768 and S. 2094 were incorporated 
into H.R. 5244. On October 7, 1994, the House passed H.R. 5244, 
with an amendment incorporating a compromise agreement 
developed by the two Committees on Veterans' Affairs. On 
October 8, 1994, the Senate passed the bill as amended. On 
November 2, 1994, the President signed H.R. 5244 into law as 
Public Law 103-446.
    The provisions of Public Law 103-446 relating to VA 
education and training programs:
    1. Established vocational flight training as a permanent 
program under chapters 30 and 32 of title 38, and chapter 106 
of title 10, effective October 1, 1994.
    2. Authorized the use of Indian reservations for the 
purposes of section 3115 of title 38, in order to allow 
eligible veterans to participate in non-pay programs of on-the-
job training on Indian reservations.
    3. Added to the definition of the term ``educational 
institution,'' for the purposes of chapters 34 and 36, entities 
which provide training required for completion of any State-
approved alternative teacher certification program as 
determined by the Secretary, effective upon enactment, for the 
period ending September 30, 1996.
    4. Removed the requirement that courses offered by approved 
foreign universities and colleges be located at the site of the 
approved institution in order for such courses to be eligible 
for approval by the Secretary.
    5. Required a correspondence program or combination 
correspondence-residence course to be eligible for approval by 
State Approving Agencies if the educational institution 
offering such program or course is accredited by an entity 
recognized by the Secretary of Education.
    6. Required that no less than 50 percent of the graduates 
of any correspondence program or combination correspondence-
residence course take a minimum of 6 months to complete the 
program or course.
    7. Increased the maximum amount available to State 
Approving Agencies to $13,000,000 per fiscal year, and 
eliminate certain reporting and supervision requirements 
related to the approval of courses of education and training.
    8. Extended the expiration date of the Veterans' Advisory 
Committee on Education until December 31, 2003, and make 
technical changes to the Committee's mandate.
    9. Raised the payment limitation for contractual 
educational and vocational counseling services to $6,000,000 in 
any fiscal year, effective October 1, 1994.
    Title VI of Public Law 103-446 also modified the Service 
Members Occupational Conversion and Training Act of 1992 
(SMOCTA). These provisions:
    1. Allowed an employer and veteran to agree to a training 
program that lasts longer than 18 months if they are willing to 
do so without the benefit of a subsidy for the extended 
training period.
    2. Clarified that the requirement in current law that 
employers pay a comparable wage refers to wages paid in the 
community where the veteran is being trained.
    3. Clarified that payment of the subsidy is limited to an 
18-month period, or the equivalent where the length of a 
training program is calculated in hours.
    4. Amended the requirement that a portion of the 
reimbursement be retained until the fourth month of the 
veteran's employment by also permitting payment 4 months after 
completion of the 18th month of training, whichever is earlier.
    5. Allowed trainees to switch into an alternative approved 
training program with the employer.
    6. Permitted an eligible veteran to begin an approved 
training program on the date that the notice of approval is 
transmitted.

                            VII. Employment

                              a. overview

    The Department of Labor has primary responsibility for the 
implementation of statutory provisions in regard to veterans' 
employment. Section 4102 of title 38--Job Counseling, Training, 
and Placement Service for Veterans--states congressional intent 
with respect to veterans' employment programs operated through 
the Department of Labor's Veterans' Employment and Training 
Service (VETS) as follows: ``The Congress declares as its 
intent that there shall be an effective (1) job and job 
training counseling program, (2) employment placement service 
program, and (3) job training placement service program for 
eligible veterans and eligible persons . . . .'' Chapter 42 of 
title 38 provides for the employment and training of disabled 
and Vietnam-era veterans. Specifically, section 4212 requires 
certain Federal contractors, and certain of their 
subcontractors, to take affirmative action to employ and 
advance in employment qualified special disabled veterans and 
veterans of the Vietnam era. Section 4214 provides for 
Veterans' Readjustment Appointments (VRAs) within the Federal 
Government. The purpose of the VRA authority is to assist 
Vietnam-era veterans who received a campaign badge, service-
disabled Vietnam-era veterans, and veterans who served after 
the Vietnam era by making it possible for them to be hired 
noncompetitively into the Federal civil service and to develop 
additional skills through a program combining education and 
training with the opportunity for a regular career appointment. 
Chapter 43 of title 38 provides reemployment protection to 
certain veterans.
    The Office of Personnel Management has responsibility to 
implement the policy of the United States to promote the 
maximum employment and job advancement opportunities within the 
Federal Government for qualified disabled veterans and veterans 
of the Vietnam era.

                            b. first session

    On May 13, 1993, the Committee held a hearing to receive 
testimony on veterans' reemployment rights legislation, S. 843, 
the proposed ``Uniformed Services Employment and Reemployment 
Rights Act of 1993.'' Testimony was presented to the Committee 
by numerous business organizations and Federal administrators 
familiar with the primary issues and potential areas of 
conflict associated with veterans' reemployment legislation. 
The Committee also received testimony from organizations 
representing the employee/servicemember, including veterans 
service organizations, the Reserves, and the National Guard.
    The Committee met in open session on July 15, 1993, to 
consider a Committee Print of S. 843. The Committee voted to 
report S. 843 favorably to the Senate with an amendment in the 
nature of a substitute.
    The Committee reported S. 843 on October 18, 1993 (S. Rept. 
103-158), and on November 8, 1993, the Senate inserted the text 
of S. 843 as amended into H.R. 995, and then passed H.R. 995. 
No further action was taken on H.R. 995 in the First Session.

                           c. second session

    On September 13, 1994, the House took up H.R. 995 
(discussed above) and amended the bill with a compromise 
developed by the two Committees on Veterans' Affairs and then 
passed the bill as amended. On September 28, 1994, the Senate 
passed the bill as amended, and on October 13, 1994, the bill 
was signed as Public Law 103-353.
    Public Law 103-353, the Uniformed Services Employment and 
Reemployment Rights Act of 1994, revised chapter 43 of title 
38. Chapter 43, as revised:
    1. Continues to protect employees or applicants for 
employment from discrimination or reprisal based on their 
military obligation, and adds a prohibition of employer 
reprisals against witnesses in reemployment rights cases.
    2. Places a five-year timeframe--longer in certain 
instances--during which an individual may be absent from a 
position of employment and still be eligible for reemployment 
rights with respect to that position.
    3. Repeals the exclusion of individuals who held temporary 
positions from reemployment protection.
    4. Generally bases time requirements for returning to work 
or applying for reemployment on the length of the individual's 
absence for service.
    5. Requires an absent individual (or an appropriate officer 
of the uniformed service) to give the employer advance written 
or verbal notice of service.
    6. Allows employers who reemploy individuals absent for 
more than 90 days for active-duty service to require 
documentation regarding their service before they would become 
entitled to pension benefits with respect to the period of 
service.
    7. Codifies court holdings that entitlement to reemployment 
protection does not depend upon the timing, frequency, 
duration, or nature of an individual's service.
    8. Requires employers to make reasonable efforts--actions, 
including training, that do not create an undue hardship on the 
employer--to refresh or update the skills of an individual who 
needs training to reassume reemployment duties.
    10. Requires employers to make reasonable efforts to 
accommodate the disability of an individual seeking employment 
who has a service-connected disability.
    11. Ensures an individual whose reemployment in a 
legislative or judicial branch position, or as a National Guard 
technician, is impossible or unreasonable, an offer of 
alternative employment in a Federal executive agency in a 
position of like seniority, status, and pay.
    12. Maintains the so-called escalator principle under which 
an individual absent from employment by reason of service in 
the uniformed services is entitled, upon being reemployed, to 
the seniority and other rights and benefits determined by 
seniority the individual had when he or she began service plus 
the additional seniority and rights and benefits he or she 
would have attained if he or she had remained continuously 
employed.
    13. Reaffirms that while an individual is performing 
service in the uniformed services, he or she is deemed to be on 
furlough or leave of absence and is entitled to those other 
rights and benefits not determined by seniority which were in 
effect at the beginning of the service, unless the individual 
knowingly waives this entitlement by indicating that he or she 
does not intend to return to the civilian position.
    14. Provides that if an individual's employer-sponsored 
health plan coverage would otherwise terminate due to an 
extended absence from employment for purposes of service in the 
uniformed services, he or she may elect to continue the health 
plan coverage for up to 18 months after the absence begins or 
for the period of service, whichever period is the lesser. The 
individual generally could be required to pay no more than 102 
percent of the full premium for the coverage, and an individual 
serving for less than 31 days could not be required to pay more 
than the normal employee share of any premium.
    15. Provides that a reemployed individual whose period of 
service was more than 30 days but less than 181 days could not 
be removed without cause for 6 months; and an individual whose 
period of service was more than 180 days could not be removed 
without cause for one year.
    16. Provides that an individual, upon submitting a written 
request to his or her employer, would be able to use accrued 
vacation or annual leave while serving in the uniformed 
services.
    17. Provides that, for pension purposes, an individual must 
be treated as not having incurred a break in service with the 
employer; service in the uniformed services would be considered 
service with the employer for vesting and benefit accrual 
purposes; the employer who reemploys the individual is liable 
for funding any resulting obligation; and the reemployed 
individual would be entitled to any accrued benefits from 
employee contributions only to the extent that the individual 
makes payments with respect to the contributions.
    18. Provides that, in a multi-employer defined contribution 
pension plan, the sponsor maintaining the plan may allocate 
among the participating employers the liability of the plan for 
pension benefits accrued by individuals who are absent for 
service in the uniformed services. If no cost-sharing 
arrangement is provided, the full liability to make the 
retroactive contributions to the plan would be allocated to the 
last employer employing the person before the period of 
uniformed service or, if that employer is no longer functional, 
to the overall plan.
    19. Provides that a returning employee's payments into the 
pension plan may be made, as the employer and employee may 
agree, during any reasonable continuous period (beginning with 
the date of reemployment), but in no event will the individual 
be afforded a payment period shorter than the length of absence 
for service for which the payments are due.
    20. Provides, for the purposes of determining an employer's 
liability or an employee's contributions under a pension 
benefit plan, that the employee's reconstructed compensation 
during the period of service in the uniformed services would be 
based on the rate of pay the employee would have received from 
the employer but for the absence during the period of service, 
or, if the employee's compensation was not based on a fixed 
rate, on the basis of the employee's average rate of pay during 
the 12-month period immediately preceding entry into service 
(or, if shorter than 12 months, the period of employment 
immediately preceding entry into service).
    21. Requires the Secretary of Labor to investigate an 
individual's complaint that the employer has failed or refused, 
or is about to fail or refuse, to comply with the reemployment 
law, and requires the Secretary to make reasonable efforts to 
ensure compliance.
    22. Authorizes the Secretary of Labor to require by 
subpoena the attendance and testimony of witnesses and the 
production of documents relating to matters concerning 
reemployment laws under investigation.
    23. Enables Federal executive agency employees whose 
reemployment cases are not resolved in their favor by the 
Department of Labor to receive representation by the Office of 
Special Counsel before the Merit Systems Protection Board 
(MSPB) and the U.S. Court of Appeals.
    24. Provides that an individual would be able to petition a 
U.S. Court of Appeals to review a decision of the MSPB.
    25. Requires the heads of intelligence agencies, which are 
otherwise exempt from enforcement procedures of the 
reemployment laws applicable to Federal agencies, to prescribe 
the conditions under which individuals who are absent from 
employment by reason of service in the uniformed services will 
be reemployed and the procedures for ensuring that those who 
satisfy the conditions are reemployed. In cases where it is 
impossible, unreasonable, or not practicable to reemploy an 
individual, the agency head would be required to notify the 
individual and the Director of the Office of Personnel 
Management (OPM). The Director of OPM would be required to 
place the individual in a comparable position elsewhere in a 
Federal executive agency.
    26. Authorizes the award of attorneys' fees and expenses to 
employees who choose to be represented by private counsel and 
who prevail in court.
    27. Provides for punitive damages in an amount equal to the 
compensatory damages awarded in a case in which an employee 
prevails against a State (as an employer) or a private employer 
in court and the court determines that the employer's failure 
to comply with the provisions of the employment law was 
willful.
    28. Provides that, effective August 1, 1990, the amount of 
Federal civil service retirement payments for a period of 
military service may not exceed the amount that would have been 
deducted or withheld for a period of civilian service if the 
employee had not performed the period of military service.
    29. Provides for the treatment of contributions to the 
Thrift Savings Fund by Federal employees who perform military 
service.
    On August 8, 1994, the House passed H.R. 4776 providing for 
improvements in veterans' employment programs, and on September 
14, 1994, the Committee took written testimony from the 
Assistant Secretary for Veterans' Employment and Training and 
from veterans service organizations on this legislation. 
Provisions derived from H.R. 4776 were incorporated into H.R. 
5244 and enacted in Public Law 103-446.
    Provisions of Public Law 103-446 relating to employment:
    1. Established the position of Deputy Assistant Secretary 
for Veterans' Employment and Training within the Department of 
Labor.
    2. Provided that compensation for Disabled Veterans' 
Outreach Program Specialists should be comparable to that paid 
to other professionals performing similar duties in the State.
    3. Expanded the unemployment study conducted by the Bureau 
of Labor Statistics to include veterans who served outside the 
theater of operations during the Vietnam era, veterans who 
served after the Vietnam era, and recently separated veterans, 
and separate categories for women veterans in all groups.
    4. Required Federal contractors to list with the local 
employment service office openings for all positions except 
executive and top management positions, positions that will be 
filled from within the contractor's organization, and positions 
lasting three days or less.
    5. Added amounts received under chapter 106 of title 10 
(reservists' education benefits) to the list of veterans' 
benefits that are not counted for purposes of determining 
eligibility for Federal job training programs.

                    VIII. Home Loan Guaranty Program

                              a. overview

    The VA Home Loan Guaranty Program is designed to encourage 
and facilitate extension of favorable credit terms by private 
lenders to veterans, and to the surviving spouses of those who 
die from service-connected causes, for the purchase, 
construction, or improvement of homes. The program operates by 
substituting the Federal Government's guaranty of a portion of 
the loan for downpayments and other more restrictive loan terms 
required under conventional mortgages. Eligible veterans can 
purchase a home even if they lack the downpayment required for 
a conventional loan.
    Most veterans pay a fee to VA for the guaranty. Service-
disabled veterans and certain surviving spouses are exempt from 
paying the fee. For loans of up to $45,000, VA guarantees up to 
50 percent of the loan amount; for loans over $45,000 but not 
more than $144,000, VA guarantees up to 40 percent, with a 
maximum guaranty of $36,000; and for loans of more than 
$144,000, VA guarantees 25 percent, with a maximum guaranty of 
$50,750.
    When a lender forecloses on a VA-guaranteed loan, VA uses a 
formula (known as the ``no-bid'' formula) to determine whether 
its costs would be lower to pay the guaranty amount or to 
acquire, then resell, the property (a ``bid''). When VA sells 
on credit properties it acquires through foreclosure or other 
termination of VA-guaranteed loans, the credit arrangements are 
known as ``vendee'' loans. In recent years, VA has pooled 
vendee loans and sold mortgage-backed securities based on such 
pooled assets.

                            b. first session

    On September 30, 1993, Chairman Rockefeller introduced S. 
1510 which, similar to section 1 of H.R. 949 as passed by the 
House on September 21, 1993, would have authorized an increase 
in the VA home loan guaranty amount, from $46,000 to $50,750.
    At the Committee's November 3, 1993, meeting, S. 1510 was 
ordered reported, and on November 4, 1993, was reported to the 
Senate without written report. The text of S. 1510 was added to 
S. 843, which was passed by the Senate on November 8, 1993 as a 
substitute amendment to H.R. 995. There was no further action 
on this legislation during the First Session.
    The provisions of Public Law 103-66 (OBRA 93, discussed 
above in section II.A.) relating to VA home loan guaranty 
programs:
    1. Extended, through September 30, 1998, the current 
requirement that VA consider its ``average resale loss'' in the 
formula VA uses to determine, upon foreclosure of a VA-
guaranteed home loan, whether to acquire and resell the 
property or pay off the VA guaranty.
    2. Increased the fee borrowers pay to VA for a VA-
guaranteed home loan by 0.75 percent of the loan amount 
(increasing the basic fee from 1.25 percent to 2.0 percent) and 
require a higher fee for borrowers who previously have used a 
VA-guaranteed loan and make no downpayment. The increased fees 
apply to loans closed between October 1, 1993, and September 
30, 1998.

                           c. second session

    On August 8, 1994, the House passed H.R. 4724 providing for 
improvements in the VA home loan program, and on September 14, 
1994, the Committee took written testimony from the Secretary 
and veterans service organizations regarding this legislation. 
Provisions derived from H.R. 4724 were incorporated into H.R. 
5244 and enacted in Public Law 103-446.
    Provisions of Public Law 103-446 relating to the VA home 
loan program:
    1. Amended the definition of veteran to include persons 
discharged or released from the Selected Reserves because of a 
service-connected disability before completing 6 years of 
service, and extended eligibility to surviving spouses of 
reservists who died on active duty or due to a service-
connected disability.
    2. Provided that the Secretary may waive the precondition 
to restoration of loan guaranty entitlement contained in 
subsection 3702(b)(1)(A) of title 38, United States Code, once 
for each veteran.
    3. Eliminated the restriction on VA guaranties on loans to 
purchase or construct homes not served by public water and 
sewerage systems where such service is certified as 
economically feasible.
    4. Allowed for costs of energy efficiency improvements to 
be added to the loan balance in connection with a loan 
refinanced for the purpose of reducing the interest rate.
    5. Authorized the refinancing of adjustable rate mortgage 
loans to fixed rate mortgage loans at an interest rate higher 
than that in force when the loan is refinanced.
    6. Eliminated VA inspection requirements for manufactured 
housing, and provided that manufactured housing that is 
certified to conform to standards under the National 
Manufactured Housing Construction and Safety Standards Act of 
1974 shall be deemed to be in compliance with VA requirements.
    7. Permitted VA to acquire property from a lender at the 
price provided for under current law despite the fact that the 
lender's bid at the foreclosure sale might have exceeded that 
price.
    8. Added an exception from the 2-year minimum service 
requirement with respect to eligibility under chapter 37 of 
title 38, United States Code, for servicemembers discharged 
because of a reduction in force.
    As discussed above (in section VII.C.), H.R. 995 was signed 
into law as Public Law 103-353 on October 13, 1995. The 
provision of Public Law 103-353 relating to VA's Home Loan 
Guaranty Program authorized an increase in the VA home loan 
guaranty amount, from $46,000 to $50,750.

              IX. Claims Adjudication and Judicial Review

                              a. overview

    In Public Law 100-687, Congress established the United 
States Court of Veterans Appeals, and provided for judicial 
review of denials of claims for veterans' benefits through the 
Court. The Court has exclusive jurisdiction to review final 
decisions of the Board of Veterans' Appeals (BVA) in cases in 
which a notice of disagreement was filed on or after November 
18, 1988, the date of enactment of Public Law 100-687. In cases 
of individual claims for benefits, the Court's review is based 
on the record of proceedings before the BVA, and only a person 
adversely affected by the BVA decision--but not the Secretary--
may appeal to the Court. Decisions of the Court are subject to 
appellate review in the United States Court of Appeals for the 
Federal Circuit. The decisions of the Court have had a 
significant impact on VA's adjudication system, including the 
operation of the BVA.

                            b. first session

    On March 24, 1993, the Committee held a hearing to address 
the significant timeliness problems that exist in VA's 
adjudication system, at both the regional office and BVA 
levels. On October 14, 1993, Chairman Rockefeller introduced S. 
1546, the proposed ``Court of Veterans Appeals Improvement Act 
of 1993,'' which would have revised certain administrative 
provisions relating to the United States Court of Veterans 
Appeals. On November 3, 1993, by a unanimous vote, the 
Committee ordered S. 1546 reported. No further action was taken 
on S. 1546 during the first session.

                           c. second session

    On March 2, 1994, the Committee reported S. 1546 (S. Rept. 
103-232). On March 25, 1994, the Senate passed S. 1546. 
Provisions derived from S. 1546 were incorporated in H.R. 5244 
and enacted in Public Law 103-446. The provisions of Public Law 
103-446 relating to claims adjudication and judicial review 
derived from S. 1546 are discussed below.
    On March 24, 1994, the Committee held a hearing to consider 
various measures, including S. 1904, a bill introduced by 
Chairman Rockefeller on March 8, 1994, which would have 
improved the organization and procedures of the Board of 
Veterans' Appeals.
    At the Committee's April 14, 1994, meeting, the Committee 
voted by unanimous voice vote to report favorably S. 1904, 
without written report.
    On April 21, 1994, the Senate passed S. 1904 by unanimous 
voice vote. Earlier, on November 22, 1993, the House passed 
H.R. 3400, which included, in title XII, provisions similar to 
the provisions in S. 1904. On June 13, 1994, the House passed 
S. 1904, with an amendment incorporating a compromise agreement 
developed by the two Committees on Veterans' Affairs. This 
amendment included the provisions from S. 1904 as passed by the 
Senate, H.R. 3400 as passed by the House, and an additional 
provision to eliminate certain income-reporting requirements 
for eligibility for certain needs-based VA programs which was 
included in S. 1908 as reported by the Committee on June 7, 
1994 (S. Rept. 103-280). The Senate concurred in the bill as 
amended on June 15, 1994. The President signed the bill into 
law on July 1, 1994, as Public Law 103-271, the Board of 
Veterans' Appeals Administrative Procedures Improvement Act of 
1994.
    The provisions in Public Law 103-271:
    1. Removed the 65-member limitation on the number of 
members that may be appointed to the Board of Veterans' 
Appeals.
    2. Provided that the Chairman of the Board is subject to 
the same ethical and legal limitations and restrictions 
regarding involvement in political activities as judges of the 
United States Court of Veterans Appeals.
    3. Removed the provision giving the Chairman authority to 
appoint temporary Board members and moved the authority to 
appoint acting members from section 7102 of title 38, United 
States Code, to section 7101, while keeping intact the 
limitation on the amount of 270 days during any 1-year period 
that an individual may serve as an acting member subject to the 
caveat that acting Board members may complete work on pending 
cases, notwithstanding that time limitation.
    4. Required the Chairman to include in the annual report on 
Board activities information concerning acting members 
appointed during the year.
    5. Allowed the Chairman to assign an appeal to a single 
Board member or to a panel of members consisting of at least 
three members rather than to a panel of at least three members 
as required by then current law.
    6. Provided that reconsideration of a case must be assigned 
to a panel of Board members if the original appeal was decided 
by a single member, and to an enlarged panel of Board members 
if the original appeal was decided by a panel. In either case, 
the panel carrying out the reconsideration cannot include any 
Board member who was involved in deciding the original appeal.
    7. Allowed the Chairman to participate in a proceeding on 
appeal or on reconsideration, but only as a member of a panel, 
and not as an individual member.
    8. Allowed the Board to use electronic or other 
technological means to conduct hearings from VA's Central 
Office in Washington, DC, while the veteran is located in a 
local regional office or other VA facility.
    9. Provided that if an appellant is seriously ill or is 
under severe financial hardship, a hearing may be held earlier 
than it otherwise would be.
    10. Eliminated the statutory requirement that recipients of 
pension and parents' dependency and indemnity compensation file 
income reports, giving VA discretionary authority to require 
the submission of income questionnaires as it deems necessary.
    At its March 24, 1994, hearing, the Committee also 
considered the provisions of S. 1905, S. 1906, S. 1907, and S. 
1908, all introduced by Chairman Rockefeller on March 8, 1994. 
S. 1905, as introduced, would have streamlined certain types of 
claims procedures and proof requirements. S. 1906, as 
introduced, would have overruled the decision of the Court of 
Veterans Appeals in Combee v. Derwinski concerning veterans' 
claims of service connection based on radiation exposure. S. 
1907, as introduced, would have required VA to adjudicate 
claims for compensation based on allegations of medical 
malpractice by VA despite the pendency of an appeal of the 
holding of COVA in Gardner v. Brown. S. 1908, as introduced, 
would have required an objective, independent study and 
evaluation of the VA adjudication system by the Administrative 
Conference of the United States.
    At the April 14, 1994, Committee meeting, the Committee 
voted by unanimous voice vote to report favorably S. 1908, with 
an amendment incorporating the provisions of S. 1905, S. 1906, 
S. 1907, and S. 1908.
    On August 19, 1994, the Senate passed S. 1908. On October 
8, 1994, certain provisions from S. 1908 were passed as part of 
H.R. 5244, which was enacted as Public Law 103-446. The 
provisions of this public law relating to claims adjudication 
and judicial review are discussed below.
    At the Committee's September 14, 1994, hearing, the 
Committee received testimony on issues related to the status 
and pay of members of the Board of Veterans' Appeals.
    On September 23, 1994, the Committee met in open session to 
consider various legislative measures, including S. 2325, 
introduced by Senator Rockefeller on July 26, 1994. Senator 
Akaka offered an amendment to S. 2325 concerning the status and 
pay of members of BVA which was adopted by the Committee. The 
Committee voted unanimously to report favorably S. 2325, as 
amended. This bill was reported on September 27, 1994 (S. Rept. 
103-385).
    On October 7, 1994, the House passed H.R. 5244, 
incorporating provisions derived from S. 2325. This legislation 
was enacted as Public Law 103-446.
    The provisions of Public Law 103-446 relating to claims 
adjudication and judicial review:
    1. Eliminated term limits for members of the Board of 
Veterans' Appeals other than the Chairman.
    2. Provided that members of the Board would receive the 
same basic pay as received by administrative law judges, unless 
that would result in a reduction in pay.
    3. Required the Chairman to establish a panel, including 
the Chairman and two other members of the Board, whose 
membership will periodically rotate, to conduct reviews of the 
job performance of Board members, establish job performance 
standards, and conduct reviews of the job performance of Board 
members within one year after the establishment of those job 
performance standards, and then at least every three years 
thereafter.
    4. Specified that if the position of Chairman were to 
become vacant upon the expiration of the Chairman's term, the 
current Chairman would be authorized, with the approval of the 
Secretary, to continue to serve as Chairman until the Chairman 
is appointed to another term or a new Chairman is appointed 
(but not beyond the end of the Congress during which the term 
of office expired).
    5. Allowed the Secretary, for purposes of claims for VA 
benefits, to accept a written statement from the claimant as 
evidence of marriage, dissolution of a marriage, birth of a 
child, or death of a family member.
    6. Allowed the Secretary to accept the medical examination 
report of a private physician in support of any claim for VA 
disability benefits, without a requirement for confirmation by 
an examination by a VA physician, if the report is sufficiently 
complete to be adequate for purposes of adjudicating the claim.
    7. Required the Secretary to take such actions as may be 
necessary to provide that claims remanded by the Board of 
Veterans' Appeals to regional offices or by the Court of 
Veterans Appeals to VA be treated expeditiously.
    8. Permitted the Board to screen cases on appeal at any 
point in the decision process (a) to determine whether the 
record is adequate for decisional purposes, or (b) for the 
development or attempted development of a record that is 
inadequate for decisional purposes.
    9. Required the Secretary to submit to the House and Senate 
Committees on Veterans' Affairs a report addressing the 
feasibility and impact of a reorganization of VA claims 
adjudication divisions to a number of such divisions that would 
result in improved efficiency in the processing of claims.
    10. Established an independent commission to study VA's 
system for the disposition of claims for benefits, both at the 
regional office level and at the Board of Veterans' Appeals, 
made up of nine members appointed by the Secretary of Veterans 
Affairs (one member who is a former VA official; two members 
from the private sector who have expertise in the adjudication 
of claims relating to insurance or similar benefits; two 
members who are employed in the Federal Government, outside VA, 
who have expertise in the adjudication of claims for Federal 
benefits other than VA benefits; two members who are 
representatives of veterans service organizations; one member 
recommended by the American Bar Association or a similar 
private organization who has expertise in administrative law 
issues; and one member who is currently a VA official).
    11. Directed the commission to evaluate the entire VA 
adjudication system in order to determine the efficiency of its 
processes and procedures, including the impact of judicial 
review on the system, means for reducing the backlog of pending 
cases in the system, and means for improving timeliness and 
quality of the claims process by examining the VA's system for 
the disposition of claims and benefits delivery and any related 
issues the commission determines are relevant to such a study.
    12. Ordered the Secretary to submit to the commission and 
the House and Senate Committees on Veterans' Affairs any 
information which the Chairman of the study determines is 
necessary to carry out the study within 30 days of the 
Chairman's request for such information.
    13. Required the commission to present a preliminary report 
within one year of enactment of the act and a final report 
within 18 months of enactment.
    14. Provided that an application filed for non service-
connected pension or parents' DIC made within one year of a 
renouncement of such benefits will not be treated as an 
original claim, and benefits will be paid as though the 
renouncement had not occurred.
    15. Required that the Court of Veterans Appeals accept as 
timely filed a notice of appeal that is mailed within the 120-
day statutory filing period if it bears a legible United States 
Postal Service postmark, and provided that the Court's 
determination as to the legibility of a postmark is final and 
not subject to review by any other court.
    16. Clarified that attorneys may receive payment for 
representation before the Court directly from VA out of a 
retroactive benefit award only if the total amount of the fee 
is contingent upon the claim being resolved in favor of the 
appellant.

                X. Burial Benefits and Memorial Affairs

                              a. overview

    VA operates and maintains the National Cemetery System and 
provides a range of burial benefits for eligible veterans, 
including burial allowances to help defray burial and funeral 
expenses, plot allowances, a flag to drape over the casket of 
each eligible deceased veteran, and a headstone or marker for 
the grave of a veteran and of certain eligible dependents.
    The National Cemetery System (not including Arlington 
National Cemetery, which is maintained by the U.S. Army) is 
comprised of 114 cemetery facilities. Veterans and certain 
dependents may be interred in such cemeteries. In addition, VA 
operates a program of matching fund grants to States for the 
construction of State veterans cemeteries.
    The American Battle Monuments Commission maintains overseas 
military and naval monuments for servicemembers who died in 
foreign conflicts.

                            b. first session

    On June 17, 1993, Senator Daniel K. Akaka introduced S. 
1128, which would have extended eligibility for burial in a 
national cemetery to reservists who had completed 20 years of 
service under honorable conditions, and to their dependents. At 
the Committee's markup on November 3, 1993, the language of S. 
1128, with some minor changes, was incorporated into an 
original bill, S. 1620, which was reported by the Committee on 
November 4, 1993, without written report. Earlier, on August 2, 
1993, similar legislation, H.R. 821, was passed by the House. 
On November 11, 1993, the Senate passed H.R. 821 after 
substituting the text of S. 1620. No further action was taken 
on this legislation in the First Session.
    On September 7, 1993, Senator Kennedy introduced S.J. Res. 
129, a joint resolution which would have authorized the 
placement of a memorial cairn in Arlington National Cemetery to 
honor the 270 victims of the terrorist bombing of Pan Am Flight 
103. This resolution was referred to the Committee.
    On November 3, 1993, the Committee voted unanimously to 
report S.J. Res. 129 without amendment or a written report and 
on November 4, 1993, the measure was reported to the Senate. 
The resolution was passed by the Senate without amendment on 
November 8, 1993. It was passed by the House of Representatives 
on November 16, 1993, and signed into law on November 24, 1993, 
as Public Law 103-158.

                           c. second session

    On April 18, 1994, the House passed H.R. 821 with an 
amendment incorporating a compromise developed by the two 
Committees on Veterans' Affairs. On April 20, 1994, the Senate 
passed the compromise agreement of H.R. 821. The bill was 
signed on May 4, 1994, as Public Law 103-240. The law grants 
eligibility for burial in a national cemetery to any person who 
at the time of death was entitled to retirement pay for service 
in a reserve component of the Armed Forces, or who would have 
been entitled to retirement pay but for the fact that the 
person was under 60 years old, and to the spouses and 
dependents of any such person.
    Public Law 103-446 (described in section VI.B.) includes 
provisions relating to burial benefits and memorial affairs 
derived from S. 2325 as reported by the Committee on September 
27, 1994; H.R. 949 as passed by the House on September 21, 
1993; and H.R. 3456 as passed by the House on November 16, 
1993. These provisions:
    1. Restored the statutory eligibility for burial in 
national cemeteries of spouses who predecease veterans eligible 
for such burial.
    2. Restored eligibility for burial in national cemeteries 
to surviving spouses whose subsequent marriage ended by death 
or divorce.
    3. Extended the authorization of appropriations for the 
State Cemetery Grants Program from September 30, 1994, to 
September 30, 1999.
    4. Authorized the use of flat grave markers at the 
Willamette National Cemetery in Oregon.

                             XI. Insurance

                              a. overview

    VA administers six life insurance programs, and supervises 
the administration of two additional programs, for the benefit 
of servicemembers and veterans and their beneficiaries. 
Approximately 6.3 million veterans and members of the uniformed 
services maintain life insurance accounts with VA for a total 
value of over $521 billion, making VA the country's fourth 
largest life insurer.

                            b. first session

    On July 15, 1993, Congressman Mike Kreidler introduced H.R. 
2647 relating to the effective date of changes in benefits 
under the Service Group Life Insurance (SGLI) program. On that 
same day, Senator Max Baucus introduced a similar bill in the 
Senate, S. 1234, which was referred to the Committee. After 
consideration and passage by the House on August 2, 1993, H.R. 
2647 was received in the Senate and referred to the Committee.
    Public Law 102-568 increased SGLI coverage from $100,000 to 
$200,000, effective at midnight (in each of the various time 
zones across the country, hour by hour) December 1, 1992. On 
November 30, 1992, 17 servicemembers--many of whom would have 
been eligible for the increased benefit on December 1, 1992--
were killed in two separate airplane crashes within hours of 
the increased benefits taking effect.
    H.R. 2647 would have required that change in SGLI benefits 
made after November 29, 1992 take place at a single point in 
time on a worldwide basis--after midnight, November 30, 1992, 
in the time zone immediately west of the International Date 
Line, thus making the survivors of the November 30 airplane 
crash victims eligible to receive the increased benefit.
    The text of H.R. 2647 was added to H.R. 2401, the 
Department of Defense Authorization Act of 1994, during debate 
in the Senate. Subsequently, this provision was included in 
H.R. 2401 as it became Public Law 103-160 on November 30, 1993.

                           c. second session

    There was no legislation relating to VA insurance programs 
before the Senate during the Second Session.

                         XII. Homeless Veterans

                              a. overview

    VA and the Department of Labor administer several programs 
designed to assist homeless veterans, including outreach and 
contracting services, domiciliary care, work therapy, job 
training, and grants to community-based organizations that 
serve homeless veterans.

                            b. first session

    There was no legislation relating to homeless veterans 
before the Senate during the First Session.

                           c. second session

    On February 23, 1994, the Committee held a hearing on the 
needs of homeless veterans and programs designed to meet these 
needs. The Committee received testimony from officials from VA 
and the Department of Housing and Urban Development, homeless 
veterans service providers, veterans service organizations, and 
two homeless veterans.
    On July 26, 1994, Senator Rockefeller introduced S. 2325, 
which would have reauthorized several VA substance abuse and 
homeless programs and authorized a demonstration program to 
create partnerships between VA and community-based 
organizations to assist homeless veterans.
    On September 14, 1994, the Committee held a hearing on, 
among other things, S. 2325. After receiving testimony from VA 
and veterans service organizations, the Committee met in open 
session on September 23, 1994, and voted unanimously to report 
S. 2325 with an amendment in the nature of a substitute that 
included provisions derived from S. 2325 as introduced, as well 
as several other measures. The Committee reported S. 2325, 
thereafter entitled the ``Veterans' Programs Improvement Act of 
1994,'' to the Senate on September 27, 1994 (S. Rept. 103-385).
    Several provisions relating to homeless veterans derived 
from S. 2325 were incorporated into the compromise agreement of 
H.R. 5244, which later became Public Law 103-446 (described in 
section VI.B.).
    The provisions of Public Law 103-446 relating to homeless 
veterans:
    1. Required VA to submit an annual report on its activities 
to assist homeless veterans, including information on the 
numbers of homeless veterans served and the costs to the 
Department of its activities, and to report biannually on the 
effectiveness of these activities.
    2. Required that VA complete an assessment of the needs of 
homeless veterans, as required by Public Law 102-405, report 
its findings to the Senate and House Committees on Veterans' 
Affairs by December 31, 1994, and update this report annually 
for three years.
    3. Raised the limit on the number of comprehensive homeless 
centers that VA may establish from four to eight.
    4. Removed the requirement in the Homeless Veterans 
Comprehensive Service Programs Act of 1992 that funds for 
various initiatives in that law be specifically provided for in 
an appropriations law.
    5. Expressed the sense of the Congress that (a) of the 
funds appropriated for any fiscal year for programs to assist 
homeless individuals, a share more closely approximating the 
proportion of the population of homeless individuals who are 
veterans should be appropriated to VA for VA homeless programs; 
(b) of the Federal grants made available to assist community 
organizations that assist homeless individuals, a share of such 
grants more closely approximating the proportion of the 
population of homeless individuals who are veterans should be 
provided to community organizations that provide assistance 
primarily to homeless veterans; and (c) the Secretary should 
encourage Federal agencies that assist homeless individuals, 
including homeless veterans, to be aware of and make 
appropriate referrals to VA for benefits, such as health care, 
substance abuse treatment, counseling, and income assistance.
    Two provisions relating to homeless veterans derived from 
S. 2325 were incorporated into the compromise agreement of H.R. 
3313, which later became Public Law 103-452 (described in 
section V.C.1.).
    The provisions in Public Law 103-452 relating to homeless 
veterans programs:
    1. Reauthorized for one year the Homeless Chronically 
Mentally Ill program, which provides outreach and contract care 
in non-VA facilities for homeless veterans with severe mental 
illnesses.
    2. Reauthorized for one year the Compensated Work Therapy/
Transitional Residence program for veterans who suffer from 
severe substance abuse problems and homelessness.

                          XIII. Miscellaneous

                            a. first session

    On November 17, 1993, the Senate passed H.R. 3341, which 
had been passed by the House of Representatives on November 2, 
1993. H.R. 3341, enacted on November 30, 1993, as Public Law 
103-161, increased the rate of special pension payable to 
persons who have received the Medal of Honor from $200 to $400.
    Public Law 103-210 (discussed above in section V.B.) 
included a provision that extended VA's authority to maintain a 
regional office in the Philippines through December 31, 1994.

                           b. second session

                            1. VA Personnel

    At the Committee's September 23, 1994, markup, the 
Committee unanimously approved an amendment to S. 2330, which 
limited the number of personnel cuts in VA. This amendment 
reflected the compromise agreement reached between the two 
Committees on Veterans' Affairs and was incorporated in H.R. 
5244, which became Public Law 103-446.
    The provisions of Public Law 103-446 relating to the VA 
workforce:
    1. Limited the cuts in the VA workforce from fiscal years 
1993-1999 to a total of 10,051 full-time equivalent employees 
(FTEE).
    2. Required that, in determining the total number of FTEE 
in VA for purposes of achieving Federal workforce reductions, 
only those employees whose salaries and benefits are paid with 
appropriated funds may be counted as VA FTEE.
    3. Required the Secretary to submit an annual report, 
through the year 2000, to the House and Senate Committees on 
Veterans' Affairs that describes the numbers and positions of 
all VA employees cut and the rationale behind such cuts.
    4. Provided enhanced authority for VA to contract for 
services during fiscal years 1995-1999 in order to assist VA in 
achieving its workforce reduction, and provide certain 
assistance and hiring preference to those employees who are 
displaced by contract workers.
    5. Required the Secretary to contract with an appropriate 
non-Federal entity to study and report to Congress on the 
feasibility and advisability of alternative organizational 
structures, such as the establishment of a quasi-Government 
corporation, to provide health care to veterans.

                     2. Minority and Women Veterans

    On August 25, 1994, Committee member Daniel K. Akaka 
introduced S. 2429, which would have established in VA an 
Office for Women Veterans and an Office for Minority Veterans, 
created a VA Advisory Committee on Minority Veterans, and 
designated a minority representative at each VA facility.
    At the Committee's September 23, 1994, markup, the 
Committee approved S. 2325, incorporating provisions from S. 
2429, including provisions relating to minority and women 
veterans. These provisions were incorporated into H.R. 5244, 
which became Public Law 103-446.
    The provisions of Public Law 103-446 relating to minority 
and women veterans:
    1. Established a Center for Women Veterans to assess the 
needs of women veterans and evaluate VA policies, regulations, 
programs, and other activities as they affect such veterans.
    2. Established a Center for Minority Veterans to assess the 
needs of minority veterans and evaluate VA policies, 
regulations, programs, and other activities as they affect such 
veterans.
    3. Required the Secretary to establish for a period of 
three years an Advisory Committee for Minority Veterans, which 
would represent certain groups relating to minority veterans, 
and to submit a report to the Secretary, not later than July 1 
of each even-numbered year, which assesses the needs of and 
programs for minority veterans.
    Public Law 103-446 also eliminated the requirement that 
veterans of the Philippine Commonwealth Army and their 
dependents and survivors be paid benefits in Philippine pesos.