[Senate Report 105-339]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 591
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-339
_______________________________________________________________________


 
A BILL TO AMEND TITLE 38, UNITED STATES CODE, TO IMPROVE AUTHORITIES OF 
 THE SECRETARY OF VETERANS AFFAIRS RELATING TO MEDAL OF HONOR SPECIAL 
  PENSION, LIFE INSURANCE, AND BURIAL BENEFITS, AND FOR OTHER PURPOSES
                                _______
                                

               September 21, 1998.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                         [To accompany S. 730]

    The Committee on Veterans' Affairs, to which was referred 
the bill (S. 730) to make retroactive the entitlement of 
certain Medal of Honor recipients to the special pension 
provided for persons entered and recorded on the Army, Navy, 
Air Force, and Coast Guard Medal of Honor Roll, having 
considered the same, reports favorably thereon with an 
amendment in the form of a substitute and an amendment to the 
title, and recommends that the bill, as amended, do pass.

                          Committee Amendments

    The amendments are as follows:
    Strike out all after the enacting clause as follows:

[SECTION 1. RETROACTIVITY OF MEDAL OF HONOR SPECIAL PENSION.

    [(a) Entitlement.--In the case of Vernon J. Baker, Edward A. 
Carter, Junior, and Charles L. Thomas, who were awarded the Medal of 
Honor pursuant to section 561 of Public Law 104-201 (110 Stat. 2529) 
and whose names have been entered and recorded on the Army, Navy, Air 
Force, and Coast Guard Medal of Honor Roll, the entitlement of those 
persons to the special pension provided under section 1562 of title 38, 
United States Code (and antecedent provisions of law), shall be 
effective as follows:
          [(1) In the case of Vernon J. Baker, for months that begin 
        after April 1945.
          [(2) In the case of Edward A. Carter, Junior, for months that 
        begin after March 1945.
          [(3) In the case of Charles L. Thomas, for months that begin 
        after December 1944.
    [(b) Amount.--The amount of the special pension payable under 
subsection (a) for a month beginning before the date of the enactment 
of this Act shall be the amount of the special pension provided by law 
for that month for persons entered and recorded on the Army, Navy, Air 
Force, and Coast Guard Medal of Honor Roll (or an antecedent Medal of 
Honor Roll required by law).
    [(c) Payment to Next of Kin.--In the case of a person referred to 
in subsection (a) who died before receiving full payment of the pension 
pursuant to this section, the Secretary of Veterans Affairs shall pay 
the total amount of the accrued pension, upon receipt of application 
for payment within one year after the date of the enactment of this 
Act, to the deceased person's spouse or, if there is no surviving 
spouse, then to the deceased person's children, per stripes, in equal 
shares.]

    Insert in lieu thereof the following:

SECTION 1. INCREASE IN MEDAL OF HONOR SPECIAL PENSION.

    (a) Increase.--Section 1562(a) of title 38, United States Code, is 
amended by striking out ``$400'' and inserting in lieu thereof 
``$600''.
    (b) Annual Adjustment.--That section is further amended--
          (1) by inserting ``(1)'' before ``The Secretary''; and
          (2) by adding at the end the following:
    ``(2) Effective as of December 1 each year, the Secretary shall 
increase the amount of monthly special pension payable under this 
subsection as of November 30 of such year by the same percentage that 
benefit amounts payable under title II of the Social Security Act (42 
U.S.C. 401 et seq.) are increased effective December 1 of such year as 
a result of a determination under section 215(i) of that Act (42 U.S.C. 
415(i)).''.
    (c) Effective Date.--(1) Except as provided in paragraph (2), the 
amendments made by this section shall take effect on the date of 
enactment of this Act and shall apply to months that begin on or after 
that date.
    (2) The Secretary of Veterans Affairs shall not make any adjustment 
under section 1562(a)(2) of title 38, United States Code, as added by 
subsection (b), in 1998.

SEC. 2. ACCELERATED DEATH BENEFIT FOR SERVICEMEMBERS' GROUP LIFE 
                    INSURANCE AND VETERANS' GROUP LIFE INSURANCE 
                    PARTICIPANTS.

    (a) In General.--(1) Subchapter III of chapter 19 of title 38, 
United States Code, is amended by adding at the end the following:

``Sec. 1980. OPTION TO RECEIVE ACCELERATED DEATH BENEFIT

    ``(a) For the purpose of this section, a person shall be considered 
to be terminally ill if the person has a medical prognosis such that 
the life expectancy of the person is less than a period prescribed in 
regulations by the Secretary. The maximum length of such period may not 
exceed 12 months.
    ``(b)(1) The Secretary shall prescribe regulations under which any 
terminally ill person insured under Servicemembers' Group Life 
Insurance or Veterans' Group Life Insurance may elect to receive in a 
lump-sum payment a portion of the face value of the insurance as an 
accelerated death benefit reduced by an amount necessary to assure that 
there is no increase in the actuarial value of the benefit paid, as 
determined in regulations issued by the Secretary.
    ``(2) The Secretary shall prescribe by regulation the maximum 
amount of the accelerated death benefit available under this section 
that the Secretary finds to be administratively practicable and 
actuarially sound, but in no event shall the amount of the benefit 
exceed the amount equal to 50 percent of the face value of the person's 
insurance in force on the date the election of the person to receive 
the benefit is approved.
    ``(3) A person making an election under this section may elect to 
receive an amount that is less than the maximum prescribed by the 
Secretary under paragraph (2). The Secretary shall prescribe in 
regulations the increments in which a reduced amount under this 
paragraph may be elected.
    ``(c) The portion of the face value of insurance which is not paid 
in a lump sum as an accelerated death benefit under this section shall 
remain payable in accordance with the provisions of this chapter.
    ``(d) Deductions under section 1969 of this title and premiums 
under section 1977(c) of this title shall be reduced, in a manner 
consistent with the percentage reduction in the face value of the 
insurance as a result of payment of an accelerated death benefit under 
this section, effective with respect to any amounts which would 
otherwise become due on or after the date of payment under this 
section.
    ``(e) The regulations under this section shall include provisions 
regarding--
          ``(1) the form and manner in which an application for an 
        election under this section shall be made; and
          ``(2) the procedures under which any such application shall 
        be considered.
    ``(f)(1) An election to receive a benefit under this section shall 
be irrevocable.
    ``(2) A person may not make more than one election under this 
section, even if the election of the person is to receive less than the 
maximum amount of the benefit available to the person under this 
section.
    ``(g) If a person insured under Servicemembers' Group Life 
Insurance elects to receive a benefit under this section and the 
person's Servicemembers' Group Life Insurance is thereafter converted 
to Veterans' Group Life Insurance as provided in section 1968(b) of 
this title, the amount of the benefit paid under this section shall 
reduce the amount of Veterans' Group Life Insurance available to the 
person under section 1977(a) of this title.
    ``(h) Notwithstanding any other provision of law, the amount of the 
accelerated death benefit received by a person under this section shall 
not be considered income or resources for purposes of determining 
eligibility for or the amount of benefits under any Federal or 
federally-assisted program.''.
    ``(2) The table of sections at the beginning of chapter 19, title 
38, United States Code, is amended by inserting after the item relating 
to section 1979 the following:

``1980. Option to receive accelerated death benefit.''.

    (b) Conforming Amendments.--Section 1970(g) of title 38, United 
States Code, is amended in the first sentence--
      (1) by striking out ``Payments of benefits'' and inserting in 
lieu thereof ``Any payments''; and
          (2) by inserting ``an insured or'' after ``or on account 
        of,''.
    ``(c) Effective Date.--The amendments made by this section shall 
take effect 90 days after the date of enactment of this Act.
    (d) Regulations.--The Secretary of Veterans Affairs shall prescribe 
the regulations required by section 1980 of title 38, United States 
Code, as added by subsection (a), in accordance with the provisions of 
section 553 of title 5, United States Code.

SEC. 3. COMMEMORATION OF INDIVIDUALS WHOSE REMAINS ARE UNAVAILABLE FOR 
                    INTERMENT.

    (a) Headstones or Markers for Certain Members of the Armed Forces 
and Spouses.--Subsection (b) of section 2306 of title 38, United States 
Code, is amended--
          (1) in the matter preceding paragraph (1), by striking out 
        ``any veteran--'' and inserting in lieu thereof ``any veteran, 
        any individual who dies in the active military, naval, or air 
        service, and any spouse or surviving spouse (including an 
        unremarried surviving spouse whose subsequent remarriage was 
        terminated by death or divorce) of a veteran or any such 
        individual--''; and
          (2) in paragraph (2) by striking out ``the veteran's'' and 
        inserting in lieu thereof ``the individual's''.
    (b) Alternative Commemoration for Certain Spouses.--That section is 
further amended by adding at the end the following:
    ``(e) Where the Secretary has furnished a memorial headstone or 
marker under subsection (b) for purposes of commemorating a veteran, or 
has furnished a headstone or marker for the unmarked grave of a veteran 
under subsection (a), the Secretary shall, where feasible, add a 
memorial inscription to such headstone or marker in lieu of furnishing 
a memorial headstone or marker under subsection (b) for the veteran's 
surviving spouse.''.
    (c) Memorial Areas.--Section 2403(b) of that title is amended to 
read as follows:
    ``(b) Under regulations prescribed by the Secretary, group 
memorials may be erected to honor the memory of groups of individuals 
referred to in subsection (a), and appropriate memorial headstones and 
markers may be erected to honor the memory of individuals referred to 
in subsection (a) and section 2306(b) of this title.''.
    (d) Applicability.--The amendments made by subsections (a) and (b) 
shall apply to deaths occurring after the date of enactment of this 
Act.

SEC. 4. FLEXIBILITY IN DOCKETING AND HEARING OF APPEALS BY BOARD OF 
                    VETERANS' APPEALS.

    (a) Postponement To Afford Hearing.--Subsection (a) of section 7107 
of title 38, United States Code, is amended--
          (1) in paragraph (1), by inserting ``paragraph (2) and'' 
        after ``Except as provided in'';
          (2) by redesignating paragraph (2) as paragraph (3); and
          (3) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) A case referred to in paragraph (1) may be postponed for 
later consideration and determination if such postponement is necessary 
to afford the appellant a hearing.''.
    (b) Scheduling of Field Hearings.--Subsection (d) of that section 
is amended--
          (1) in paragraph (2), by striking out ``in the order'' and 
        all that follows through the end and inserting in lieu thereof 
        ``in accordance with the place of the case on the docket under 
        subsection (a) relative to other cases on the docket for which 
        hearings are scheduled to be held within that area.'; and
          (2) by striking out paragraph (3) and inserting in lieu 
        thereof the following new paragraph (3):
    ``(3) A hearing to be held within an area served by a regional 
office of the Department may, for cause shown, be advanced on motion 
for an earlier hearing. Any such motion shall set forth succinctly the 
grounds upon which it is based and may not be granted unless the case 
involves interpretation of law of general application affecting other 
claims or for other sufficient cause shown.''.
    (c) Applicability.--The amendment made by subsection (b)(1) shall 
apply to requests for hearing received by the Department of Veterans 
Affairs on or after the date of enactment of this Act.

SEC. 5. COMMENCEMENT OF PERIOD FOR NOTICES OF APPEAL WITH COURT OF 
                    VETERANS APPEALS.

    Section 7266(a)(1) of title 38, United States Code, is amended by 
striking out ``notice of the decision is mailed pursuant to section 
7104(e) of this title'' and inserting in lieu thereof ``a copy of the 
decision is mailed or sent to the claimant's authorized representative, 
or mailed to the claimant if the claimant has no authorized 
representative, pursuant to section 7104(e) of this title''.

SEC. 6. ASSESSMENT OF EFFECTIVENESS OF INSURANCE AND SURVIVOR BENEFITS 
                    PROGRAMS FOR SURVIVORS OF VETERANS WITH SERVICE-
                    CONNECTED DISABILITIES.

    (a) Report on Assessment.--Not later than May 1, 1999, the 
Secretary of Veterans Affairs shall submit to the Committees on 
Veterans' Affairs of the Senate and the House of Representatives a 
report containing an assessment of the adequacy of the insurance and 
survivor benefits programs of the Department of Veterans Affairs 
(including the payment of dependency and indemnity compensation under 
chapter 13 of title 38, United States Code) in meeting the needs of 
survivors of veterans with service-connected disabilities, including 
survivors of catastrophically disabled veterans who cared for such 
veterans at great personal sacrifice.
    (b) Report Elements.--The report on the assessment under subsection 
(a) shall include the following:
      (1) An identification of the characteristics that make a disabled 
veteran catastrophically disabled.
      (2) A statement of the number of veterans with service-connected 
disabilities who participate in insurance programs administered by the 
Department.
      (3) A statement of the number of survivors of veterans with 
service-connected disabilities who receive dependency and indemnity 
compensation under chapter 13 of title 38, United States Code.
      (4) An assessment of the participation of veterans with service-
connected disabilities in the insurance programs administered by the 
Department on the effectiveness and administration of such programs.
      (5) Data on veterans with service-connected disabilities that are 
relevant to the insurance programs administered by the Department, and 
an assessment how such data might be used to better determine the cost 
above standard premium rates of insuring veterans with service-
connected disabilities under such programs.
      (6) An analysis of various methods of accounting and providing 
for the additional cost of insuring the lives of veterans with service-
connected disabilities under the insurance programs administered by the 
Department.
      (7) An assessment of the adequacy of the current insurance 
programs and dependency and indemnity compensation programs of the 
Department in meeting the needs of survivors of severely-disabled or 
catastrophically-disabled veterans.
      (8) An analysis of various methods of meeting the transitional 
financial needs of survivors of veterans with service-connected 
disabilities immediately after the deaths of such veterans.
      (9) Such recommendations as the Secretary considers appropriate 
regarding means of improving the benefits available to survivors of 
veterans with service-connected disabilities under programs 
administered by the Department.

SEC. 7. ANNUAL REPORTS ON FUNDING REQUIREMENTS OF DEPARTMENT OF 
                    VETERANS AFFAIRS FOR PARTICIPATION IN PROGRAMS TO 
                    RESPOND TO POTENTIAL ATTACKS WITH WEAPONS OF MASS 
                    DESTRUCTION.

    The Secretary of Veterans Affairs shall include with the documents 
in support of each budget submitted to Congress under section 1105 of 
title 31, United States Code, for a fiscal year after fiscal year 1999 
a specific request for funds estimated to be required by the Department 
of Veterans Affairs for the fiscal year covered by the budget concerned 
in order to carry out its responsibilities under Federal programs to 
respond to potential terrorist attacks on the United States with 
weapons of mass destruction.

    Amend the title so as to read:

    A Bill to amend title 38, United States Code, to improve 
authorities of the Secretary of Veterans Affairs relating to Medal of 
Honor special pension, life insurance, and burial benefits, and for 
other purposes.

                              Introduction

    On May 8, 1997, Senator Dirk Kempthorne introduced S. 730 
with the cosponsorship of Committee Member Larry E. Craig, 
Senator Robert G. Torricelli, Senator Craig Thomas, and Senator 
Mike Enzi. As introduced, S. 730 would have made retroactive 
the entitlement of three Medal of Honor recipients to the 
special pension provided for persons entered and recorded on 
the Army, Navy, Air Force, and Coast Guard Medal of Honor Roll.
    On March 11, 1998, the Chairman of the Committee, Senator 
Arlen Specter, introduced S. 1743 at the request of the 
Administration.S. 1743 would have authorized memorialization of 
deceased spouses and surviving spouses of veterans and deceased members 
of the Armed Forces whose remains are not available for interment.
    On March 11, 1998, Committee Chairman Specter also 
introduced S. 1745 at the request of the Administration. S. 
1745 would have amended title 38, United States Code, to 
provide flexibility in the order in which the Board of 
Veterans' Appeals (BVA) of the Department of Veterans Affairs 
(VA), hears and considers appeals.
    On May 21, 1998, Committee Chairman Specter introduced S. 
2108, the ``Servicemembers' and Veterans' Group Life Insurance 
Accelerated Death Benefits Act,'' at the request of the 
Administration. S. 2108 would have provided that, upon 
application, terminally ill persons insured under 
Servicemembers' Group Life Insurance and Veterans' Group Life 
Insurance policies be paid accelerated death benefits.
    On July 25, 1997, the Committee held a hearing to receive 
testimony on pending legislation, including S. 730. The 
Committee received testimony from Senator Daniel K. Inouye, 
Senator Barbara Boxer, Representative Bob Filner, and 
Representative Benjamin A. Gilman, and received testimony for 
the record from Representative Sue W. Kelly. The Committee also 
received testimony from Stephen L. Lemons, Ed.D., VA Acting 
Under Secretary for Benefits; Thomas L. Garthwaite, M.D., VA 
Deputy Under Secretary for Health; and from representatives of 
The American Legion, Veterans of Foreign Wars, Disabled 
American Veterans, and Vietnam Veterans of America. Testimony 
was also submitted for the hearing record by the Office of 
Veterans Affairs, Philippine Embassy; Paralyzed Veterans of 
America; AMVETS; the American Coalition for Filipino Veterans; 
the Coordinating Council of Leaders of Veterans Organizations 
in Southern California; Filipino War Veterans, Incorporated; 
the National Coalition for Homeless Veterans; and LA Vets.
    On October 7, 1997, the Committee met in open session and 
voted unanimously to report, among other things, S. 730, as 
amended. S. 730, as amended, would have made retroactive the 
entitlement of three Medal of Honor recipients to the special 
pension provided for persons entered and recorded on the Army, 
Navy, Air Force, and Coast Guard Medal of Honor Roll. In 
addition, S. 730, as amended, would have, effective January 1, 
1998, increased the special pension from $400 to $600 per month 
and effective January 1 in years thereafter, increased the 
special pension by an amount equal to the percentage increase 
in the annual cost-of-living as computed under 38 U.S.C. 
Sec. 5312(a).
    On November 18, 1997, the President signed Public Law 105-
85, the ``National Defense Authorization Act for Fiscal Year 
1998.'' Section 577 of Public Law 105-85 made retroactive the 
entitlement of three Medal of Honor recipients to the special 
pension provided for persons entered and recorded on the Army, 
Navy, Air Force, and Coast Guard Medal of Honor Roll as 
specified in S. 730, as introduced.

                           Committee Meeting

    On July 28, 1998, the Committee met in open session and 
voted unanimously to report S. 730, as further amended with an 
amendment in the nature of a substitute. S. 730, as further 
amended, includes provisions from S. 730, as approved by the 
Committee on October 7, 1997; S. 1743; S. 1745; S. 2108, as 
amended; an original provision relating to the commencement of 
the time period within which persons must file a notice of 
appeal in order to obtain review by the Court of Veterans 
Appeals (CVA) of a Board of Veterans'' Appeals decision; an 
original provision directing that VA provide to Congress an 
assessment of the effectiveness of insurance and benefits 
programs for the survivors of veterans with service-connected 
disabilities; and an original provision requiring that VA 
include in its proposed annual budget for fiscal year 1999, and 
each year thereafter, a separate line item specifying funding 
requested for VA participation in Federal programs to respond 
to potential terrorist attacks in the United States with 
weapons of mass destruction.

                     Summary of S. 730 as Reported

    S. 730 as reported (hereinafter referred to as the 
``Committee bill'') contains freestanding provisions and 
amendments to title 38, United States Code, that would:
    1. Increase the special pension provided for persons 
entered and recorded on the Army, Navy, Air Force, and Coast 
Guard Medal of Honor Roll from $400 to $600 per month, and 
increase the special pension annually thereafter by an amount 
equal to the percentage increase in the annual cost-of-living 
as computed under 38 U.S.C. Sec. 5312(a)(section 1).
    2. Provide for the payment, upon application of the 
insured, of accelerated death benefits to terminally ill 
persons insured under Servicemembers' Group Life Insurance and 
Veterans' Group Life Insurance policies (section 2).
    3. Authorize the memorialization of deceased spouses of 
veterans and deceased members of the Armed Forces whose remains 
are not available for interment (section 3).
    4. Provide flexibility in the order in which the Board of 
Veterans' Appeals hears and considers appeals (section 4).
    5. Clarify the commencement of the time period within which 
persons must file a notice of appeal in order to obtain review 
by the Court of Veterans Appeals (section 5).
    6. Direct VA to provide to Congress an assessment of the 
effectiveness of insurance and benefits programs for the 
survivors of veterans with service-connected disabilities 
(section 6).
    7. Require VA to include in its proposed annual budget for 
fiscal year 1999, and each year thereafter, a separate line 
item specifying funding requested for VA participation in 
Federal programs to respond to potential terrorist attacks in 
the United States with weapons of mass destruction (section 7).

                               Discussion

    The Committee bill, which is derived from S. 730, as 
amended, S. 1743, S. 1745, S. 2108, as amended, and three 
original provisions, would make various changes in law as 
outlined below.
    Section 1. Increase in Medal of Honor Special Pension. 
Medal of Honor recipients who survive their act of gallantry 
receive a special pension of $400 per month. The pension was 
set at $200 per month until December 1993, the effective date 
of the current benefit. See 38 U.S.C. Sec. Sec. 1560-1562.
    S. 730, as introduced, would have granted, retroactively, 
the special pension afforded to Medal of Honor recipients to 
three men who received the Medal in January 1997: Mr. Vernon J. 
Baker; Mr. Edward A. Carter (deceased); and Mr. Charles L. 
Thomas (deceased). In all three cases, the recipients survived 
the act of gallantry which gave rise to the award, and accrued 
pension would have been computed from the date of each man's 
act of valor (April 1945, March 1945, and December 1944, 
respectively). In the case of Mr. Baker, a lump sum pension 
payment would have been made to Mr. Baker; in the cases of 
Messrs. Carter and Thomas, it would have been made to their 
survivors.
    The substance of S. 730, as introduced, was approved by the 
Congress as section 577 of the National Defense Authorization 
Act for Fiscal Year 1998, Public Law 105-85, 111 Stat. 1629. 
Accordingly, the provisions of S. 730, as amended and approved 
unanimously by the Committee on October 7, 1997, relating to 
retroactive pension payments to Messrs. Baker, Carter and 
Thomas, did not require further consideration. However, 
provisions of the bill, as amended and approved in October 
1997, that would have increased and indexed the pension 
remained to be considered by the Congress.
    Section 1 of the Committee bill sets forth those 
provisions; that is, it provides that the special pension 
afforded to Medal of Honor recipients shall be increased from 
$400 per month to $600 per month. Further, it provides that, in 
future years, the pension shall be automatically increased to 
reflect increases in the cost of living.
    Section 2. Accelerated Death Benefit for Servicemembers' 
Group Life Insurance and Veterans' Group Life Insurance 
Participants. Prior to enactment, in 1996, of Public Law 104-
275, 110 Stat. 3322, Veterans' Group Life Insurance (VGLI) 
policies could be converted to individual commercial life 
insurance policies, but only after such policies had been held 
by the insured for 5 years. Servicemembers' Group Life 
Insurance (SGLI) policies could not be converted to individual 
commercial life insurance policies at all, prior to enactment 
of Public Law 104-275. As a consequence, service personnel and 
veterans who might have chosen to convert to commercial 
policies with features not available in VGLI or SGLI policies--
e.g., the cash value accumulation features found in ``whole 
life'' policies or assignability provisions that allow 
terminally ill persons to viaticate or ``cash out'' policies 
prior to death--found that options available to other consumers 
were restricted or foreclosed to them. Public Law 104-275 
remedied that inequity by removing restrictions on the 
conversion of SGLI and VGLI policies to individual commercial 
life insurance policies.
    Commercial policies may be viaticated in many States; that 
is, many States allow persons who are terminally ill to assign 
ownership of the policy (and the entitlement to the policy's 
death benefit) to a commercial entity in exchange for a cash 
settlement ``up front.'' When the Committee considered VA-
requested legislation that ultimately become part of Public Law 
104-275, it requested that VA consider proposing legislation to 
authorize the inclusion of an accelerated death benefit feature 
in SGLI and VGLI policies. The Committee reasoned that if it is 
appropriate to allow terminally ill servicemembers and veterans 
to ``cash out'' their SGLI or VGLI policies through use of a 
commercial policy middle person, they ought to be able to do so 
directly as well. S. 2108, which was introduced by Chairman 
Specter at the request of the VA and from which section 2 of 
the Committee bill is derived, authorizes such an accelerated 
death benefit feature.
    Section 2 of the Committee bill authorizes VA to promulgate 
regulations allowing SGLI- or VGLI-insured persons having a 
life expectancy of 12 months or less to elect to receive a 
portion of the benefit due at death. That benefit could not 
exceed 50% of the death benefit due, less the ``present value'' 
adjustment necessary to assure that there is no increase in the 
actuarial value of the total benefit paid. Sums not received by 
the insured on an accelerated basis would remain payable to the 
insured beneficiaries at the death of the insured. Sums 
received by the terminally ill veteran would not, under the 
Committee bill, be taken into account in determining 
eligibility for VA pension orany other ``means-tested'' Federal 
or federally-assisted benefits program.
    Section 3. Commemoration of Individuals Whose Remains Are 
Unavailable for Interment. VA is authorized to place memorial 
markers in national cemeteries to commemorate veterans whose 
remains were lost or buried at sea, donated to science, 
cremated and scattered as ashes, or were otherwise unavailable. 
38 U.S.C. Sec. 2306(b). VA is not authorized, however, to 
memorialize a veteran's spouse who predeceases the veteran and 
whose remains are not available.
    Section 3 of the Committee bill authorizes VA to furnish a 
memorial marker for a living veteran's deceased spouse whose 
remains are unavailable for interment. In addition, section 3 
codifies authority consistent with VA's practice of 
memorializing the deceased spouse of a veteran who predeceased 
the spouse and whose remains were unavailable for burial.
    Section 4. Flexibility in Docketing and Hearing of Appeals 
by Board of Veterans' Appeals. The Board of Veterans' Appeals 
is required by statute to consider and decide appeals ``in 
regular order according to its place upon the docket.'' 38 
U.S.C. Sec. 7107(a). Each appellant having an appeal pending at 
BVA is entitled to a hearing, at BVA headquarters or, at the 
appellant's option, in the area served by the VA regional 
office where the claim under appeal was adjudicated. See 38 
U.S.C. Sec. Sec. 7107(b), 7107(d). So-called travel board 
hearings--hearings away from BVA offices in Washington, DC--
must be held in the order in which requests for hearings at the 
field site were received. 38 U.S.C. Sec. 7107(d)(2).
    Application of these rules can result in unnecessary delays 
in the issuance of decisions by BVA in cases where an appeal is 
ripe for adjudication. For example, if an appellant has 
requested a travel board hearing, decisions on all appeals 
filed after that appeal must await the travel board hearing 
even if there has already been a hearing on the later-filed 
cases. Further, because travel board hearings must be scheduled 
in order of request, a hearing on an earlier-filed appeal may 
have to await the later-filed appeal's hearing--even though the 
decision on the earlier-filed appeal has to precede the 
decision on the later-filed appeal.
    Section 4 of the Committee bill affords BVA flexibility in 
scheduling hearings, and in considering and deciding appeals, 
so that these anomalous and unintended delays may be avoided. 
First, section 4 would authorize BVA to postpone consideration 
and disposition of a pending appeal in order to afford the 
appellant a hearing. Thus, BVA would be permitted to dispose of 
later-filed appeals ready for consideration that would 
otherwise remain on the docket pending a decision on an 
earlier-filed appeal awaiting a hearing.
    Second, BVA would be authorized to schedule travel board 
hearings on the basis of the pending appeals' relative places 
on the BVA docket rather than on the basis of the order in 
which requests for a hearing were received. Thus, appeals could 
be docketed for travel board hearings in the order in which 
they would be decided rather than the order in which requests 
for hearings had been received. Finally, section 4 would 
otherwise authorize the advancement of a travel board hearing 
at the request of the appellant, but only if the appeal 
involves an interpretation of law of general application 
affecting other claims or for other good cause shown.
    Section 5. Commencement of Period for Notices of Appeal 
with Court of Veterans Appeals. Under current law, final 
decisions rendered by BVA will be reviewed by the Court of 
Veterans Appeals if the person adversely affected by the BVA 
decision files a notice of appeal with CVA ``within 120 days 
after the date on which notice of the decision is mailed 
pursuant to [38 U.S.C. Sec. 7104(e)].'' 38 U.S.C. 
Sec. 7266(a)(1)(emphasis added). As section 7266(a)(1) 
currently reads, it suggests that section 7104(e) requires that 
all BVA decisions be ``mailed.'' Section 7104(e), however, no 
longer specifies such a requirement; Public Law 104-275 
modified section 7104(e) to authorize BVA, in cases where a 
claimant has an authorized representative, to send a copy of 
its decision to the authorized representative by means other 
than the mail, e.g., by hand-delivering the decision to the 
representative.
    When Public Law 104-275 modified section 7104 to authorize 
delivery of a BVA decision by means other than the mail, it did 
not include a necessary conforming amendment to section 
7266(a)(1). Section 5 of the Committee bill remedies this 
oversight by specifying that, in cases where a claimant has an 
authorized representative, CVA review will be proper when a 
notice of appeal is filed within 120 days after the date the 
decision is mailed or sent to the claimant's authorized 
representative. Section 5 does not modify current law with 
respect to cases where the person adversely affected by the BVA 
decision has no authorized representative. In such cases, the 
120-day period will continue to commence at the date of 
mailing.
    Section 6. Assessment of Effectiveness of Insurance and 
Survivor Benefits Programs for Survivors of Veterans with 
Service-Connected Disabilities. VA administers two programs 
which are designed to assist the survivors of veterans who 
either die in service or who die after service due to service-
connected causes. First, it operates life insurance programs 
under which servicemembers and veterans can procure up to 
$200,000 in life insurance coverage at a competitive cost--even 
though they might be uninsurable under commercial life 
insurance policy underwriting standards due to active duty 
service or service-connecteddisability. Such policies protect 
the spouses and children of servicemembers and veterans in the same way 
that commercial policies protect the beneficiaries of other insured 
persons. Second, VA operates the Dependency and Indemnity Compensation 
(DIC) program for the benefit of the surviving spouses, dependent 
children and, in some cases, parents of servicemembers and veterans who 
have died in service, or who have died after service due to an injury 
or illness incurred in service or after having suffered long-term, 
total disability due to a service-connected cause. DIC recipients 
receive a monthly payment, currently set at $850 per month. In 
addition, DIC recipients receive additional allowances of $104 to $215 
per month to provide for dependent children and to account for a 
surviving spouse's special aid and attendance and housebound needs.
    In 1992, Public Law 102-568 addressed both programs: it 
increased maximum life insurance benefits from $100,000 to 
$200,000; and it eliminated for newly eligible DIC recipients 
the benefits system formerly in place which tied the level of 
monthly benefit to the deceased servicemember's or veteran's 
military pay grade.
    Notwithstanding the reforms enacted in 1992, the Committee 
remains concerned about the welfare of the surviving spouses of 
catastrophically disabled veterans who, during the veteran's 
lifetime, were required to care for the veteran's daily needs. 
Such a surviving spouse may have forfeited significant 
educational or career opportunities which would have placed the 
survivor in better financial position but for his or her 
responsibility to care for a catastrophically disabled veteran. 
When such a veteran (who would have been receiving significant 
compensation benefits) passes away, the surviving spouse may 
incur a drastic reduction in monthly income, even after receipt 
of DIC benefits. This situation is aggravated further in cases 
where the veteran had not been afforded the opportunity to 
purchase adequate levels of life insurance coverage.
    Section 6 of the Committee bill directs that VA develop and 
report to the Committee data necessary to facilitate a 
Committee assessment of the efficacy of VA life insurance and 
DIC programs in meeting the needs of the survivors of service-
connected veterans. It directs, further, that VA provide its 
own assessment of these programs' efficacy. Finally, it directs 
that VA analyze various methods--including methods other than 
the insurance and DIC benefits currently in force--in meeting 
the transitional needs of a veteran's survivor particularly 
during the period immediately following the veteran's death, 
and that it furnish to the Committee recommendations on how 
such benefits might be improved.
    Section 7. Annual Reports on Funding Requirements of 
Department of Veterans Affairs for Participation in Programs to 
Respond to Potential Attacks with Weapons of Mass Destruction. 
Recent events have highlighted the need for domestic 
preparations for acts of terrorism within the United States. 
The Committee believes that VA's national health care 
infrastructure is uniquely situated to assist in a national 
emergency medical effort in the event of terrorist use of 
weapons of mass destruction within our borders. The Committee 
believes, as well, that VA's unique capability to assist the 
victims of such weapons is adversely affected by current 
funding levels.
    Section 7 of the Committee bill requires that VA include in 
its annual budget submission to the Congress a separate line 
item specifying the level of funding sought to support VA 
participation in Federal programs to respond to terrorist 
attacks in the United States with weapons of mass destruction. 
In addition, a separate line item should be included in the 
annual budget submission specifying funding provided to VA by 
the Department of Health and Human Services to support VA's 
participation in such programs. Such a requirement would be 
operative, initially, with respect to the Administration's 
proposed fiscal year 1999 budget and with respect to all fiscal 
years thereafter.

                             Cost Estimate

    In compliance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate, the Committee, based on 
information supplied by the Congressional Budget Office (CBO), 
estimates that the costs resulting from the enactment of the 
Committee bill, as compared to costs under current law and as 
scored against the current CBO baseline for the first 5 years 
following enactment, would have negligible effect on direct 
spending during fiscal years 1999 through 2003. According to 
CBO, S. 730 would not have a significant budgetary impact. The 
bill would not affect the budgets of State, local, or tribal 
governments.
    The cost estimate provided by CBO, setting forth a detailed 
breakdown of costs, follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 11, 1998.
Hon. Arlen Specter,
Chairman, Committee on Veterans' Affairs
United States Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 730, a bill to amend 
title 38, UnitedStates Code, to improve authorities of the 
Secretary of Veterans Affairs relating to Medal of Honor special 
pension, life insurance, and burial benefits, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Charles 
Riemann.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

S. 730--A bill to amend title 38, United States Code, to improve 
        authorities of the Secretary of Veterans Affairs relating to 
        Medal of Honor special pension, life insurance, and burial 
        benefits, and for other purposes

    Summary: S. 730 would affect several veterans' programs, 
including pension, insurance benefits, burial benefits, and the 
Board of Veterans' Appeals. CBO estimates that S. 730 would not 
have a significant budgetary impact. Because it would affect 
direct spending, pay-as-you-go procedures would apply, but any 
such effects would be negligible. The bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would not affect the 
budgets of state, local, or tribal governments.
    Estimated cost to the Federal Government: S. 730 would 
raise both direct spending and spending subject to 
appropriation by less than $500,000 a year. The costs of this 
legislation fall within budget function 700 (veterans' 
affairs).
    Direct Spending.--The bill would raise direct spending 
through changes to three programs.
    Medal of Honor Pension. Section 1 would increase the 
special pension paid to recipients of the Congressional Medal 
of Honor. It would increase the monthly payments during 1999 
from $400 a month to $600 a month and increase payments 
thereafter by annual cost-of-living adjustments. Data from VA 
indicate that 151 veterans currently receive the special 
pension.
    Thus, CBO estimates that this provision would increase 
spending by less than $400,000 a year over the 1999-2003 
period.
    Memorial Headstones and Markers. Section 3 would authorize 
VA to furnish memorial headstones and markers, under certain 
circumstances, on behalf of spouses who predecease the 
veterans. VA currently provides fewer than 1,000 headstones or 
markers each year to memorialize eligible veterans whose 
remains were not recovered or identified, or were buried at 
sea, donated to science, or cremated and scattered. The bill 
would authorize memorial headstones or markers on behalf of 
predeceasing spouses who meet those conditions. The bill would 
also codify VA's practice that spouses who die after the 
veteran be memorialized with an inscription on the veteran's 
marker or headstone.
    Data from VA indicate that fewer than 500 spouses would 
become eligible for memorialization under the bill. Because 
each marker or headstone would cost about $90, CBO estimates 
that implementing this provision would cost less than $100,000 
a year over the 1999-2003 period.
    Servicemembers' Group Life Insurance. Section 2 would 
require VA to prescribe regulations under which any terminally 
ill person insured under either the Servicemembers' Group Life 
Insurance (SGLI) or Veterans' Group Life Insurance (VGLI) could 
elect to receive a lump-sum payment in advance. Any remaining 
portion would be paid upon the death of the individual.
    The bill would prohibit any advance payment from exceeding 
50 percent of the face value of the person's insurance in force 
on the date of such election, and it would also prohibit an 
increase in the actuarial value of the total benefit. Under the 
bill, the election to receive an early benefit would be 
irrevocable.
    The SGLI and VGLI provide low-cost group life insurance to 
persons on active duty in the military service, ready 
reservists, members of the Commissioned Corps of the National 
Oceanic and Atmospheric Administration, cadets and midshipmen 
of the four service academies, and members of the Reserve 
Officer Training Corps. These insurance programs are supervised 
by VA and administered, under a contractual agreement, by the 
Prudential Insurance Company. VA collects premiums and then 
disburses those funds to Prudential for the payment of claims 
and administrative costs. Any changes in premiumincome are 
offset by the changes in VA's outlays to Prudential. Therefore, CBO 
estimates that this provision would not have a net impact on direct 
spending.
    Spending subject to appropriation.--The bill also contains 
provisions that could affect spending subject to appropriation, 
but any such effects would be insignificant.
    Board of Veterans' Appeals. The bill would provide the 
Board of Veterans' Appeals with flexibility over the order in 
which it hears and considers cases. The bill would enable the 
board to consider and decide an appeal later than its normal 
place on the docket if a delay is needed to provide a field 
hearing for the appellant.
    Assessment of Insurance and Survivor Benefits Programs. The 
bill would require VA to report on its assessment of the 
adequacy of the insurance and survivor benefits programs in 
meeting the needs of survivors of veterans with service-
connected disabilities. The report would be due no later than 
May 1, 1999.
    Pay-as-you-go considerations: Section 252 of the Balanced 
Budget and Emergency Deficit Control Act sets up pay-as-you-go 
procedures for legislation affecting direct spending or 
receipts. S. 730 would not affect governmental receipts. CBO 
estimates that enactment of this bill would result in 
additional direct spending outlays of less than $500,000 a 
year.
    Intergovernmental and private-sector impact: S. 730 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal costs: Charles Riemann; 
Impact on State, local, and tribal governments: Marc Nicole; 
Impact on the private sector: Rachel Schmidt.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee on Veterans' 
Affairs has made an evaluation of the regulatory impact which 
would be incurred in carrying out the Committee bill. The 
Committee finds that the Committee bill would not entail any 
significant regulation of individuals or businesses or result 
in any significant impact on the personal privacy of any 
individuals, and that the paperwork resulting from enactment 
would be minimal.

                 Tabulation of Votes Cast in Committee

    In compliance with paragraph 7 of rule XXVI of the Standing 
Rules of the Senate, the following is a tabulation of votes 
cast in person or by proxy by members of the Committee on 
Veterans' Affairs at its July 28, 1998, meeting. On that date, 
the Committee, by unanimous voice vote, ordered S. 730, as 
amended, reported favorably to the Senate.

                             Agency Report

    On July 25, 1997, the Committee held a hearing to receive 
testimony on pending legislation, including S. 730. The 
Committee received testimony from Stephen L. Lemons, Ed.D., VA 
Acting Under Secretary for Benefits, and from Thomas L. 
Garthwaite, M.D., VA Deputy Under Secretary for Health. An 
excerpt from that testimony is reprinted below:

    Statement of Dr. Stephen L. Lemons, Acting Under Secretary for 
        Benefits, Department of Veterans Affairs, July 25, 1997

    Mr. Chairman and Members of the Committee:
    I am pleased to be here this morning to discuss those items 
on your agenda that would impact the Veterans Benefits 
Administration, the National Cemetery System, and the Board of 
Veterans' Appeals. Your letter of invitation asked that we 
address each of the following bills and draft proposals: S. 987 
(VA requested draft legislation proposing a compensation cost-
of-living-adjustment and other program improvements); S. 464; 
S. 623; S. 714; S. 730; Committee Print (to increase the Medal 
of Honor pension); S. 813; S. 986 (VA requested draft 
legislation proposing home loan program improvements); 
Committee Print (to make technical amendments to Public Law 
104-275); and Committee Print (codification of FY 1997 cost-of-
living adjustment legislation, Pub. L. No. 104-263).

           *       *       *       *       *       *       *

S. 730--Retroactive award of Medal of Honor pension
    Mr. Chairman, S. 730 would authorize retroactive payment of 
the special Medal of Honor pension provided under section 1562 
of title 38, United States Code (and antecedent provisions of 
law), to three named individuals, Mr. Vernon J. Baker, 
effective for months that begin after April 1945; Mr. Edward A. 
Carter, Jr., for months that begin after March 1945; and Mr. 
Charles L. Thomas, for months that begin after December 1944; 
or to certain survivors of these individuals. Each of these 
individuals was awarded the Medal of Honor by the President on 
January 13, 1997. In addition, four individuals who were killed 
in action during World War II were also awarded the Medal of 
Honor. Of the three individuals covered by S. 730, only Mr. 
Vernon J. Baker is living. Mr. Carter died in 1963; Mr. Thomas 
died in 1980.
    S. 730 would provide for the payment of benefits beginning 
from the dates on which the actions upon which the awards of 
the Medal of Honor were based rather than for periods of time 
after which the individuals' names were recorded on the Army, 
Navy, Air Force, and Coast Guard Medal of Honor Roll, subject 
to any existing age requirements, as required under applicable 
law.
    Under the law as it has existed in its various forms since 
1916, the earliest date any of these three individuals could, 
in theory, have been eligible for the special pension, would 
have been November 1, 1964, even if each had been awarded the 
Medal of Honor during World War II or soon thereafter. Mr. 
Carter died in 1963 at age 46. At the time of his death, the 
law required an individual to have attained age 55 in order to 
be eligible for the special pension. In 1964 the age 
requirement was reduced to age 40 by Pub. L. No. 88-651, 
effective October 13, 1964. Mr. Thomas survived until 1980. 
Thus, at the time of the enactment of Pub. L. No. 88-651, he 
would have met the minimum age requirement. Therefore, but for 
the fact that the Medal of Honor was not awarded until January 
13 of this year, Mr. Thomas apparently would have been eligible 
for the special pension beginning on November 1, 1964, until 
his death on February 15, 1980. Had his medal been timely 
awarded, Mr. Baker, too, would have become eligible for the 
special pension on November 1, 1964. In no case, however, would 
any of the three named individuals have been eligible for the 
special pension prior to that date. For this reason, VA cannot 
support enactment of S. 730, as introduced.
    However, simple fairness demands that those who have been 
deprived of their special pensions for a time due to an 
unjustifiable delay in recognizing their acts of valor be made 
whole. For that reason, the Department would favor retroactive 
payment to Mr. Baker in an amount equal to the Medal of Honor 
pension foregone during the period November 1, 1964, to 
September 30, 1996, after which he began receiving this 
benefit, and to the surviving spouse or children, if any, of 
Mr. Thomas for the period November 1, 1964, to the date of his 
death in 1980, during which he would have been entitled to the 
special pension but for the delay in the issuance of his medal. 
The costs associated with the enactment of either S. 730, as 
introduced, or this modified proposal, would be less than 
$500,000 annually. These costs would be subject to the pay-as-
you go provisions of OBRA 1990.
Committee print--Increase the Medal of Honor pension
    This draft bill would amend section 5312 of title 38, 
United States Code, to provide for automatic cost-of-living 
adjustments in the rate of the special pension paid to 
recipients of the Medal of Honor under section 1562 of title 
38, United States Code, by linking future increases to annual 
cost-of-living adjustments in Social Security in the same 
fashion as non-service-connected disability pension.
    The Medal of Honor pension was last increased in 1993 by 
Pub. L. No. 103-161 from $200 per month to $400 per month. The 
rate had been increased to $200 from $100 in 1978, effective 
January 1, 1979, by Pub. L. No. 95-479. In 1961, the rate of 
pension was increased by Pub. L. No. 87-139 to $100 from its 
original rate of $10 per month, as established by the Act of 
April 27, 1916.
    VA opposes the enactment of this proposal on the basis that 
linkage of this special pension to cost-of-living adjustments 
in Social Security implies that this benefit is intended in 
some fashion as a subsistence benefit. That is not the purpose 
of this honorarium. Rather, the special pension was intended by 
Congress to serve as a ``recognition of superior claims on the 
gratitude of the country.'' and to ``reward * * *  in a modest 
way startling deeds of individual daring and audacious heroism 
in the face of mortal danger when war is on.'' S. Rep. No. 240, 
64th Cong., 1st Sess. 2, 8 (1916). It is a benefit that is 
payable ``in addition to all other payments under laws of the 
United States.'' 38 U.S.C. Sec. 1562(b). Furthermore, as 
evinced by the rate increases enacted in 1978 and 1993, the 
periodic increases Congress has deemed to be appropriate for 
this benefit have not been limited by, or directly linked to, 
cost-of-living adjustments in other Government benefits which 
are intended as income-maintenance benefits. The costs 
associated with the enactment of this proposal would be less 
than $500,000 annually. These costs would be subject to the 
pay-as-you-go provisions of OBRA 1990.

           *       *       *       *       *       *       *

    Thank you, again, Mr. Chairman, for seeking our views on 
each of the measures on today's agenda. We will be pleased to 
respond to questions you or other Members of the Committee may 
have regarding this testimony.

           Changes in Existing Law Made by S. 730 as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the Committee bill, as reported, are shown as follows (existing 
law proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TITLE 38, UNITED STATES CODE

           *       *       *       *       *       *       *


                       PART II--GENERAL BENEFITS

 CHAPTER 15--PENSION FOR NON-SERVICE-CONNECTED DISABILITY OR DEATH OR 
FOR SERVICE

           *       *       *       *       *       *       *


 SUBCHAPTER IV--ARMY, NAVY, AIR FORCE, AND COAST GUARD MEDAL OF HONOR 
ROLL

           *       *       *       *       *       *       *


Sec. 1562. Special provisions relating to pension

    (a) (1) The Secretary shall pay monthly to each person 
whose name has been entered on the Army, Navy, Air Force, and 
Coast Guard Medal of Honor roll, and a copy of whose 
certificate has been delivered to the Secretary under 
subsection (c) of section 1561 of this title, a special pension 
at the rate of [$400] $600, beginning as of the date of 
application therefor under section 1560 of this title.
    (2) Effective as of December 1 each year, the Secretary 
shall increase the amount of monthly special pension payable 
under this subsection as of November 30 of such year by the 
same percentage that benefit amounts payable under title II of 
the Social Security Act (42 U.S.C. 401 et seq.) are increased 
effective December 1 of such year as a result of a 
determination under section 215(i) of that Act (42 U.S.C. 
415(i)).

           *       *       *       *       *       *       *


CHAPTER 19--INSURANCE

           *       *       *       *       *       *       *


           SUBCHAPTER III--SERVICEMEN'S GROUP LIFE INSURANCE

1965. * * *
            * * * * * * *
1980. Option to receive accelerated death benefit.
            * * * * * * *

SUBCHAPTER III--SERVICEMEN'S GROUP LIFE INSURANCE

           *       *       *       *       *       *       *


Sec. 1970. Beneficiaries; payment of insurance

    (a) * * *

           *       *       *       *       *       *       *

    (g) [Payments of benefits] Any payments due or to become 
due under Servicemembers' Group Life Insurance or Veterans' 
Group Life Insurance made to, or on account of, an insured or a 
beneficiary shall be exempt from taxation, shall be exempt from 
the claims of creditors, and shall not be liable to attachment, 
levy, or seizure by or under any legal or equitable process 
whatever, either before or after receipt by the beneficiary. 
The preceding sentence shall not apply to (1) collection of 
amounts not deducted from the member's pay, or collected from 
him by the Secretary concerned under section 1969(a) of this 
title, (2) levy under subchapter D of chapter 64 of the 
Internal Revenue Code of 1986 (26 U.S.C. 6331 et seq.) 
(relating to the seizure of property for collection of taxes), 
and (3) the taxation of any property purchased in part or 
wholly out of such payments.

           *       *       *       *       *       *       *


Sec. 1980. Option to receive accelerated death benefit

    (a) For the purpose of this section, a person shall be 
considered to be terminally ill if the person has a medical 
prognosis such that the life expectancy of the person is less 
than a period prescribed in regulations by the Secretary. The 
maximum length of such period may not exceed 12 months.
    (b)(1) The Secretary shall prescribe regulations under 
which any terminally ill person insured under Servicemembers' 
Group Life Insurance or Veterans' Group Life Insurance may 
elect to receive in a lump-sum payment a portion of the face 
value of the insurance as an accelerated death benefit reduced 
by an amount necessary to assure that there is no increase in 
the actuarial value of the benefit paid, as determined in 
regulations issued by the Secretary.
    (2) The Secretary shall prescribe by regulation the maximum 
amount of the accelerated death benefit available under this 
section that the Secretary finds to be administratively 
practicable and actuarially sound, but in no event shall the 
amount of the benefit exceed the amount equal to 50 percent of 
the face value of the person's insurance in force on the date 
the election of the person to receive the benefit is approved.
    (3) A person making an election under this section may 
elect to receive an amount that is less than the maximum 
prescribed by the Secretary under paragraph (2). The Secretary 
shall prescribe in regulations the increments in which a 
reduced amount under this paragraph may be elected.
    (c) The portion of the face value of insurance which is not 
paid in a lump sum as an accelerated death benefit under this 
section shall remain payable in accordance with the provisions 
of this chapter.
    (d) Deductions under section 1969 of this title and 
premiums under section 1977(c) of this title shall be reduced, 
in a manner consistent with the percentage reduction in the 
face value of the insurance as a result of payment of an 
accelerated death benefit under this section, effective with 
respect to any amounts which would otherwise become due on or 
after the date of payment under this section.
    (e) The regulations under this section shall include 
provisions regarding--
          (1) the form and manner in which an application for 
        an election under this section shall be made; and
          (2) the procedures under which any such application 
        shall be considered.
    (f)(1) An election to receive a benefit under this section 
shall be irrevocable.
    (2) A person may not make more than one election under this 
section, even if the election of the person is to receive less 
than the maximum amount of the benefit available to the person 
under this section.
    (g) If a person insured under Servicemembers' Group Life 
Insurance elects to receive a benefit under this section and 
the person's Servicemembers' Group Life Insurance is thereafter 
converted to Veterans' Group Life Insurance as provided in 
section 1968(b) of this title, the amount of the benefit paid 
under this section shall reduce the amount of Veterans' Group 
Life Insurance available to the person under section 1977(a) of 
this title.
    (h) Notwithstanding any other provision of law, the amount 
of the accelerated death benefit received by a person under 
this section shall not be considered income or resources for 
purposes of determining eligibility for or the amount of 
benefits under any Federal or federally-assisted program.

           *       *       *       *       *       *       *


CHAPTER 23--BURIAL BENEFITS

           *       *       *       *       *       *       *


Sec. 2306. Headstones, markers, and burial receptacles

    (a) * * *
    (b) The Secretary shall furnish, when requested, an 
appropriate memorial headstone or marker for the purpose of 
commemorating [any veteran--] any veteran, any individual who 
dies in the active military, naval, or air service, and any 
spouse or surviving spouse (including an unremarried surviving 
spouse whose subsequent remarriage was terminated by death or 
divorce) of a veteran or any such individual--
          (1) * * *
          (2) whose remains were buried at sea, whether by [the 
        veteran's] the individual's own choice or otherwise,

           *       *       *       *       *       *       *

    (e) Where the Secretary has furnished a memorial headstone 
or marker under subsection (b) for purposes of commemorating a 
veteran, or has furnished a headstone or marker for the 
unmarked grave of a veteran under subsection (a), the Secretary 
shall, where feasible, add a memorial inscription to such 
headstone or marker in lieu of furnishing a memorial headstone 
or marker under subsection (b) for the veteran's surviving 
spouse.

           *       *       *       *       *       *       *


CHAPTER 24--NATIONAL CEMETERIES AND MEMORIALS

           *       *       *       *       *       *       *


Sec. 2403. Memorial areas

    (a) * * *
    [(b) Under regulations prescribed by the Secretary, 
appropriate memorials or markers shall be erected to honor the 
memory of those individuals, or group of individuals, referred 
to in subsection (a) of this section.] (b) Under regulations 
prescribed by the Secretary, group memorials may be erected to 
honor the memory of groups of individuals referred to in 
subsection (a), and appropriate memorial headstones and markers 
may be erected to honor the memory of individuals referred to 
in subsection (a) and section 2306(b) of this title.

           *       *       *       *       *       *       *


             PART V--BOARDS, ADMINISTRATIONS, AND SERVICES

CHAPTER 71--BOARD OF VETERANS' APPEALS

           *       *       *       *       *       *       *


Sec. 7107. Appeals: dockets; hearings

    (a)(1) Except as provided in paragraph (2) and subsection 
(f), each case received pursuant to application for review on 
appeal shall be considered and decided in regular order 
according to its place upon the docket.
    (2) A case referred to in paragraph (1) may be postponed 
for later consideration and determination if such postponement 
is necessary to afford the appellant a hearing.
    [(2)] (3) A case referred to in paragraph (1) may, for 
cause shown, be advanced on motion for earlier consideration 
and determination. Any such motion shall set forth succinctly 
the grounds upon which it is based and may not be granted 
unless the case involves interpretation of law of general 
application affecting other claims or for other sufficient 
cause shown.
    (b) * * *

           *       *       *       *       *       *       *

    (d)(1) * * *
    (2) A hearing to be held within an area served by a 
regional office of the Department shall (except as provided in 
paragraph (3)) be scheduled to be held [in the order in which 
requests for hearings within that area are received by the 
Department.] in accordance with the place of the case on the 
docket under subsection (a) relative to other cases on the 
docket for which hearings are scheduled to be held within that 
area.
    [(3) In a case in which the Secretary is aware that the 
appellant is seriously ill or is under severe financial 
hardship, a hearing may be scheduled at a time earlier than 
would be provided for under paragraph (2).] (3) A hearing to be 
held within an area served by a regional office of the 
Department may, for cause shown, be advanced on motion for an 
earlier hearing. Any such motion shall set forth succinctly the 
grounds upon which it is based and may not be granted unless 
the case involves interpretation of law of general application 
affecting other claims or for other sufficient cause shown.

           *       *       *       *       *       *       *


CHAPTER 72--UNITED STATES COURT OF VETERANS APPEALS

           *       *       *       *       *       *       *


SUBCHAPTER II--PROCEDURE

           *       *       *       *       *       *       *


Sec. 7266. Notice of appeal

    (a)(1) In order to obtain review by the Court of Veterans 
Appeals of a final decision of the Board of Veterans' Appeals, 
a person adversely affected by such decision shall file a 
notice of appeal with the Court within 120 days after the date 
on which [notice of the decision is mailed pursuant to section 
7104(e) of this title] a copy of the decision is mailed or sent 
to the claimant's authorized representative, or mailed to the 
claimant if the claimant has no authorized representative, 
pursuant to section 7104(e) of this title.

           *       *       *       *       *       *       *