[House Report 106-628]
[From the U.S. Government Publishing Office]





106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-628

=======================================================================




 
            VETERANS AND DEPENDENTS MILLENNIUM EDUCATION ACT

                                _______
                                

  May 19, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 4268]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Veterans' Affairs, to whom was referred the 
bill (H.R. 4268) to amend title 38, United States Code, to 
increase amounts of educational assistance for veterans under 
the Montgomery GI Bill and to enhance programs providing 
educational benefits under that title, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

  The amendment (stated in terms of the page and line numbers 
of the introduced bill) is as follows:
  Page 15, strike lines 14 and 15 and insert in lieu thereof 
the following:
          (1) in paragraph (4)(B)--
                  (A) by striking ``2002'' and inserting 
                ``2008; and
                  (B) by striking ``2003'' and inserting 
                ``2009; and

                              Introduction

    On April 13, 2000, the Chairman and Ranking Member of the 
Veterans' Affairs Committee, the Honorable Bob Stump and the 
Honorable Lane Evans, along with the Chairman of the 
Subcommittee on Benefits, the Honorable Jack Quinn, and others, 
introduced H.R. 4268 to amend title 38, United States Code, to 
enhance programs providing education benefits to veterans.
    On February 23, 1999, the Committee on Veterans' Affairs 
held a hearing to receive the findings and recommendations of 
the bipartisan Commission on Servicemembers and Veterans 
Transition Assistance, the centerpiece of which was education 
recommendations. The committee received testimony from Senator 
Robert J. Dole, the sponsor of the legislation first calling 
for the creation of the Commission and from Anthony J. Principi 
and G. Kim Wincup, Commission Chairman and Vice Chairman, 
respectively. On April 21, 1999, the Subcommittee on Benefits 
held a hearing on veterans' educational legislative 
initiatives, including H.R. 1182, introduced by Honorable Bob 
Stump, Honorable Jack Quinn, and others, and H.R. 1071, 
introduced by Honorable Lane Evans, Honorable Bob Filner and 
others. Witnesses included the Honorable G.V. (Sonny) 
Montgomery; Mr. G. Kim Wincup; Sergeant First Class Thomas R. 
Krech, Recruiter, U.S. Army; Petty Officer Laura D. Johnson, 
Recruiter, U.S. Navy; Staff Sergeant Robert A. Austin, Field 
Recruiter, U.S. Air Force; Gunnery Sergeant Paul Jornet, 
Recruiter, U.S. Marine Corps; Electricians Mate Second Class 
Keisha R. Gill, Recruiter, U.S. Coast Guard; Vice Admiral P.A. 
Tracey, Deputy Assistant Secretary of Defense, Military 
Personnel Policy; Major General Evan Gaddis, Commanding 
General, U.S. Army Recruiting Command; Rear Admiral Barbara E. 
McGann, Commander, U.S. Navy Recruiting Command; Brigadier 
General Peter U. Sutton, Commander, U.S. Air Force Recruiting 
Service; Major General Gary L. Parks, Commanding General, U.S. 
Marine Corps Recruiting; and Rear Admiral Thomas J. Barrett, 
Director of Reserve and Training, U.S. Coast Guard; Joshua W. 
Krebs, Chief Master Sergeant, USAF (Ret.), Manager, Legislative 
Affairs, Air Force Sergeants Association; and Mr. Michael P. 
Cline, Executive Director, Enlisted Association of the National 
Guard, submitted testimony for the record.
    A second hearing on these bills was held on May 20, 1999, 
and witnesses included Ms. Nora Egan, Deputy Under Secretary for
Management, Veterans Benefits Administration; Dr. Steven F.
Kime, Chairman, Secretary of Veterans Affairs Advisory Commit-
tee on Education; Ms. Judith Lee Ladd, President, American School
Counselor Association; Mr. David A. Guzman, President, National
Association of Veterans Program Administers; Mr. C. Donald
Sweeney, Legislative Director, National Association of State Ap-
proving Agencies; Mr. Sid Daniels, Deputy Director, National Leg-
islative Services, Veterans of Foreign Wars; Mr. William F.
Frasure, Deputy Director, Government Relations, Vietnam Veter-
ans of America; Mr. Peter Gaytan, Legislative Director, AMVETS;
Mr. Matthew L. Puglisi, Assistant Director, National Veterans Af-
fairs and Rehabilitation Commission, The American Legion; Mr.
Harley Thomas, Associate Legislative Director, Paralyzed Veterans
of America; Mr. Larry D. Rhea, Deputy Director, Legislative Af-
fairs, Non Commissioned Officers Association; Mr. Charles L.
Calkins, National Executive Secretary, Fleet Reserve Association;
Mr. John J. Daly, Legislative Assistant, The Retired Enlisted Asso-
ciation; Mr. Benjamin H. Butler, Associate Legislative Counsel, Na-
tional Association for Uniformed Services; Joshua W. Krebs, Chief
Master Sergeant, USAF (Ret.), Manager, Legislative Affairs, Air
Force Sergeants Association; Mr. Theodore Stroup, Vice President,
Association of the U.S. Army; and Colonel Robert F. Norton, USA 
(Ret.), Deputy Director, Government Relations, The Retired 
Officers Association (TROA).
    On October 28, 1999, the Subcommittee on Benefits met to 
receive testimony on H.R 625, introduced by Honorable Robert 
Ney.
    On May 11, 2000, the Full Committee met and ordered H.R. 
4268 reported favorably to the House by roll call vote of 21-0.

                      Summary of the Reported Bill

    H.R. 4268 would:

    1. LIncrease the All-Volunteer Force Educational Assistance 
Program basic benefits (commonly referred to as the Montgomery 
GI Bill or MGIB) from $536 to $600 per month on October 1, 
2000, and to $720 per month on October 1, 2002, for full-time 
students, with proportionate increases for part-time students.

    2. LFurnish individuals still on active duty who either 
turned down a previous opportunity to convert to the MGIB or 
had a zero balance in their Post-Vietnam Era Veterans' 
Educational Assistance Program (VEAP) account, the option to 
pay $2,700 to convert to MGIB eligibility.

    3. LIncrease survivors' and dependents' educational 
assistance benefits for full-time students from $485 to $600 
per month effective October 1, 2000, and $720 per month 
effective October 1, 2002, with proportionate increases for 
part-time students; also authorizes an annual cost-of-living 
adjustment.

    4. LPermit the award of Survivors' and Dependents' 
Educational Assistance payments to be retroactive to the date 
of entitlement, that is, service-connected death or award of 
100 percent disability rating.

    5. LAllow monthly educational assistance benefits to be 
paid between term, quarter, or semester intervals of up to 
eight weeks.

    6. LAllow use of MGIB benefits to pay the fee for a 
veteran's civilian occupational licensing or certification 
examination.

    7. LExtend temporary authority to 2008 that would otherwise 
expire on September 30, 2002, including VA-enhanced loan asset 
authority guaranteeing the payment of principal and interest on 
VA-issued certificates or other securities; VA home loan fees 
of 3/4 of one percent of the total loan amount; procedures 
applicable to liquidation sales on defaulted home loans 
guaranteed by VA; VA/Department of Health and Human Services 
income verification authority in which VA verifies the 
eligibility for VA needs-based benefits and VA means-tested 
medical care by gaining access to income records of the 
Department of Health and Human Services/Social Security 
Administration and the Internal Revenue Service; and limitation 
on VA pension on veterans without dependents receiving 
Medicaid-covered nursing home care.

    8. LCodify recurring provisions in annual Department of 
Veterans Affairs Appropriations Acts.

    9. LReinstate the requirement that the Secretary provide 
periodic reports concerning equitable relief granted by the 
Secretary to an individual beneficiary (expires December 31, 
2004); work and activities of the Department; programs and 
activities examined by the Advisory Committees on a) Former 
Prisoners of War and b) Women Veterans (expires after biennial 
reports submitted in 2003); operation of the Montgomery GI Bill 
educational assistance program (expires December 31, 2004); 
activities of the Secretary's special medical advisory group 
(expires December 31, 2004); and also require the Secretary to 
include with any report that is required by law or by a joint 
explanatory statement of a Congressional conference committee 
an estimate of the cost of preparing the report.

                               Background

    Congress created the All-Volunteer Force Education 
Assistance Program, commonly referred to as the Montgomery GI 
Bill (MGIB), in 1984 as a pilot program and made the program 
permanent in 1987 (Public Law 100-48). Congress created the 
World War II, Korean, and Vietnam-era GI Bill programs 
primarily to assist former servicemembers in readjusting to 
civilian life. Congress designed such programs to (1) provide 
vocational readjustment and restore lost educational 
opportunities to those servicemen and servicewomen whose 
careers had been interrupted or impeded by reason of active 
duty, and (2) aid these individuals in attaining the vocational 
and educational status which they might normally have aspired 
to and obtained had they not served their country.
    The MGIB was also designed to help former servicemembers in 
readjustment to civilian life and to restore educational 
opportunities lost as the result of the veteran's decision to 
serve in the military. But unlike previous programs that 
originated during a period of universal (male) military 
service, Congress also designed the MGIB explicitly to assist 
the Armed Forces in recruiting and retaining the high quality 
individuals they need to attract to an All-Volunteer Force.
    Subcommittee on Benefits hearing testimony and the 
bipartisan Report of the Congressional Commission on 
Servicemembers and Veterans Transition Assistance (``Transition 
Commission'') show that despite the wisdom and foresight of 
those who fought to reestablish a meaningful educational 
assistance program, the MGIB is losing its effectiveness as 
both a readjustment and recruitment tool.

                              Readjustment

    The MGIB is inadequate as a readjustment tool. It currently 
pays $536 per month from which the veteran must pay tuition, 
books, fees, housing, and other personal expenses. 68 percent 
of veterans are married at separation from the military and 
many have children. The Transition Commission reported that 
``during school year 1995-1996, the MGIB covered only 36 
percent of total costs at the average four-year college.'' The 
Commission also noted that ``through FY 1997, some 13 years 
after enactment of the MGIB, only 48.7 percent of eligible 
veterans used it. From 1987 through 1997, VA reported a 37.3 
MGIB participation [usage] rate. Vietnam-era GI Bill usage for 
the first 10 years [1966 to 1976] was 63.4 percent.''
    Military leaders are also acutely aware of the eroded value 
of the MGIB as evidenced by the testimony of Vice Admiral P.A. 
Tracey, Deputy Assistant Secretary of Defense, Military 
Personnel Policy, at the committee's April 21, 1999, hearing: 
``Since its inception, the value of the MGIB, when adjusted for 
inflation, has grown by only 24 percent, while college costs 
have risen by 49 percent.'' Sergeant First Class Thomas Krech, 
an Army recruiter stationed in Arizona, noted ``The current 
Montgomery GI Bill, helps open some doors but the centers of 
influence (even more than potential recruits) are in touch with 
the reality of how much a college education costs these days. 
The fact is that the $19,008 the current MGIB offers will not 
even pay for one year in some colleges in the country.''
    The committee notes analysis furnished from the 
``Partnership for Veterans Education: Fulfilling America's 
Promise'', established in January 2000, and based in 
Washington, DC. The Partnership is comprised of 47 veterans, 
military, and higher education associations led by the Non 
Commissioned Officers Association of the United States, the 
Veterans of Foreign Wars of the United States, the American 
Council on Education, and The Retired Officers Association.
    The Partnership cites 1999 data from Trends in College 
Pricing furnished by the College Board, and concludes that the 
monthly basic MGIB benefit would need to be $975 per month for 
a veteran student to be able to pay an average tuition and 
expenses as a commuter student at a four-year public college 
for academic year 1999-2000. Over four years, the numbers are 
even more alarming, as reported by the Partnership and the 
College Board. Average tuition and expenses for a commuter 
student at a four-year public college for academic year 1999-
2000 is $8,774. The MGIB now provides $536 monthly stipends 
over four years; the total benefit payable is $19,296. Monthly 
stipends would need to be $975 per month to meet the $35,096 
four-year public college cost.

                              Recruitment

    The MGIB as a recruitment tool has also become inadequate. 
The RAND Corporation reports that even though total Department 
of Defense recruiting requirements declined by 33 percent 
between 1989 and 1998, the Army, Navy, Air Force, and Coast 
Guard are experiencing serious recruiting challenges. Vice 
Admiral P.A. Tracey, Deputy Assistant Secretary of Defense, 
Military Personnel Policy, underscored this point at the 
Subcommittee's April 1999, hearing:

          [R]ecruiting has been the toughest we have 
        experienced in a long time in fiscal years 1998 and 
        1999. . . . Money for college consistently ranks as the 
        major reason young men and women give for enlisting. . 
        . . There is little doubt that the MGIB has met or 
        exceeded the expectations of its sponsors and has been 
        a major contributor to the success of the AVF.

    The Transition Commission reported that the Department of 
Defense's (DoD) 1995 Youth Attitude Tracking Survey (YATS) 
showed that ``most college-bound youth and their families see a 
tour of military service as a detour from their college plans, 
not as a way to achieve that goal.'' DoD's YATS for fiscal year 
1998 showed that only 26 percent of 16-21 year old men 
expressed interest in military service. This compares 
unfavorably with the 34 percent of young men who seriously 
considered enlisting in fiscal year 1991.
    The Transition Commission's 1999 report also found that 
``the MGIB is losing its effectiveness in providing college-
caliber high school graduates with an incentive to join the 
Armed Forces . . . the amount available under the MGIB is not 
enough to compensate youth for the time spent and risk involved 
in military service.'' Since 1985, about 95 percent of 
servicemembers have paid $1,200 to participate in the MGIB. But 
only about half of ex-servicemembers have used even part of 
their MGIB, largely confirming that it does not meet their 
needs. Judith Lee Ladd, President, American School Counselor 
Association, notes parents' reaction to the low usage. Ms. Ladd 
testifed that ``[s]tatistics showing only 48.7 percent of 
eligible veterans use the Montgomery GI Bill educational 
benefits heightens parental concern [about their son or 
daughter serving in the military after high school graduation]; 
therefore, they want their student launched into higher 
education before other factors can disrupt the drive.'' Joshua 
R. Krebs, Chief Master Sergeant, USAF (Ret.), Manager, 
Legislative Affairs, Air Force Sergeant's Association, 
testified on the need to reverse the trend to which Ms. Ladd 
spoke: ``. . . [W]hen high school students consider their post-
high school plans, we want them to consider military service as 
their first option, not their last.'' (emphasis in original)
    Secretary of Defense William S. Cohen chartered The United 
States Commission on National Security/21st Century in 1998 to 
assess U.S. defense needs in the 21st century. The Commission's 
report warns that ``it is not clear how the military 
establishment then, will sustain and recruit enough highly 
skilled personnel to meet the increasing technical needs of an 
advanced military.'' The Commission's statement about the need 
to recruit sufficient quality personnel underscores what 
witnesses testified to at the committee's April 21 or May 20, 
1999, hearings. The committee notes four such observations:
    First, Vice Admiral P.A. Tracey and Army Major General Evan 
Gaddis, Commander of Army Recruiting Command, apprised the 
committee that the universe of 17-21 year old males from which 
the service branches recruit is about 14 or 16 out of 100. This 
is because some 65 percent of youth today go on to some form of 
postsecondary education, others are medically or morally 
unqualified, and others do not meet the education or aptitude 
requirements.
    Second, DoD data show that about 80 percent of high school 
graduates complete their first three years of service--compared 
with about 65 percent of young people who have General 
Equivalency Degree (GED) certificates.
    Third, testimony from the Honorable G.V. (Sonny) 
Montgomery, who championed the All-Volunteer Force educational 
assistance program that bears his name, provided historical 
perspective. Mr. Montgomery noted that the percentage of 
recruits who were high school graduates nearly doubled after 
implementation of the GI Bill test program in 1985. In fact, in 
fiscal year 1992, 100 percent of all active-duty recruits had 
graduated from high school. Mr. Montgomery reported the 
percentage of recruits scoring in the upper half of the Armed 
Forces Qualification Test soared as well after the GI Bill was 
in place.
    Fourth, Lieutenant General Theodore G. Stroup, U.S. Army 
(Ret.), noted that All-Volunteer Force recruiting starts and 
ends with the U. S. Army. He pointed out that in fiscal year 
1999 alone, the Army faces a staggering recruiting requirement 
of 184,000 for all its components--more than all of the other 
services recruiting requirements combined.
    The United States' defense needs may change dramatically; 
``defending the Nation'' may take on new meaning. More 
specifically, the success or failure of our military recruiting 
may be most discernible right here at home, lending even more 
importance to recruiting skilled personnel. Congress created 
the National Defense Panel in accordance with Section 924 of 
the Military Force Structure Act of 1996 to address long-term 
issues facing U.S. defense and national security. The National 
Defense Panel's 1998 report, Transforming Defense, National 
Security in the 21st Century, says a real threat to the 
Nation's security now includes terrorism directed against sites 
in the country:

          [T]he proliferation of nuclear, chemical, and 
        biological weapons and their delivery means will pose a 
        threat to our homeland and our forces overseas. 
        Information systems, the vital arteries of the modern 
        political, economic, and social infrastructures, will 
        undoubtedly be targets as well. . . . We must never 
        forget that our people in uniform have been the core of 
        our strength in the past. They, more than any hardware 
        system, form the defense capability of today and 
        tomorrow.

    The committee recognizes that military service--the 
Nation's most fundamental form of national service--calls for 
many sacrifices that often have no comparison in the civilian 
world. What are the standards by which the Congress, taxpayers, 
servicemembers, veterans, business and industry are to judge 
the Montgomery GI Bill? The committee finds useful the May 20, 
1999, testimony of Larry D. Rhea, Deputy Director of 
Legislative Affairs, Non Commissioned Officers Association of 
the United States of America:

          If the MGIB is to be judged a success in the future 
        as well as in the past, the evidence must show that 
        veterans are currently receiving post-secondary 
        education. The evidence must show that the military 
        services are currently recruiting the high-quality high 
        school graduates they need. The evidence must show that 
        the Nation has enhanced its competitiveness by taking 
        full advantage of the unique national resources 
        represented by the self-disciplined, goal-oriented, 
        steadfast team players developed through military 
        service. The evidence must show that the leadership 
        circles of government, academia, business, labor, and 
        media are enhanced by the presence of veterans in their 
        ranks.

    The committee notes two additional points. The committee 
will continue to look for ways to improve the MGIB benefit as 
proposed by the Partnership for Veterans Education. Entitlement 
increases that are not offset with savings or additional 
revenues could lead to deficits or spending Social Security 
funds. A responsible debate has to include a discussion of 
offsets. Secondly, at its May 20, 1999, hearing, the committee 
received testimony from several organizations, including Mr. 
David A. Guzman, President, the National Association of 
Veterans Program Administrators (NAVPA) and the Secretary of 
Veterans Affairs' Advisory Committee on Education, stating that 
the MGIB has become a non-benefit because the veteran student's 
Federal Financial Aid is reduced by the amount of their MGIB 
entitlement. The committee will examine this issue.

                    Discussion of the Reported Bill

INCREASE IN RATES OF BASIC EDUCATIONAL ASSISTANCE FOR SERVICE ON ACTIVE 
                   DUTY UNDER THE MONTGOMERY GI BILL

    The reported bill would increase Montgomery GI Bill basic 
benefits from $536 per month to $600 per month for full-time 
veteran students who served at least three years effective 
October 1, 2000; the monthly rate for veteran students whose 
initial active duty commitment was two years would increase 
from $436 to $487. Further, effective October 1, 2002, this 
section would increase Montgomery GI Bill basic benefits to 
$720 per month for full-time veteran students. The monthly rate 
for two-year enlistees would increase to $585 per month. In all 
instances, proportionate increases would be provided for part-
time students.

ADDITIONAL OPPORTUNITY FOR CERTAIN VEAP PARTICIPANTS TO ENROLL IN BASIC 
            EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL

    This section would furnish individuals still on active duty 
who either declined a previous opportunity to convert to the 
MGIB or had a zero balance in their Post-Vietnam Era Veterans' 
Education Assistance Program (VEAP) account to pay $2,700 to 
convert to MGIB eligibility. Individuals would have 12 months 
to elect to convert and 18 months from the date of election to 
make payment.
    VEAP provides educational assistance payments to veterans 
and current servicemembers who entered active duty between 
January 1, 1977 and June 30, 1985. VEAP was the first 
contributory education benefit plan. Under VEAP, active duty 
servicemembers made voluntary contributions to an individual 
account, which the federal government matched at a 2:1 ratio. 
The maximum participant contribution was $2,700 and 
participants could elect to make a lump-sum contribution to the 
fund. In most cases, a veteran had 10 years in which to use the 
education benefit, and/or make a claim for the unused 
contribution.
    Congress was able to provide the opportunity in Public Law 
104-275 enacted on October 9, 1996, for about 76,000 active-
duty VEAP participants with funds in their VEAP account to 
convert to the MGIB, if they desired. Only about 29,000 did so. 
The Department of Defense estimates that about 137,000 active 
duty personnel would be eligible for an additional VEAP sign 
up. As testimony cited below indicates, many servicemembers who 
initially signed up withdrew their contribution to the VEAP 
account on the advice of their service branch.
    The May 10, 1999, testimony of Colonel Robert F. Norton, 
USA (Ret.) of The Retired Officers Association, illustrates the 
view of the organizations testifying in support of resolving 
the VEAP issue:

          VEAP Conversion--The First Order of Business. Over 
        the past two and one-half years, TROA has heard from 
        many career active duty servicemembers who have been 
        ``left behind'' with a fourth class education benefit . 
        . . They find it hard to believe that Congress would be 
        willing to authorize huge increases in education 
        benefits for new recruits and first or second termers, 
        but leave them behind with a benefit that is woefully 
        inadequate. The current situation stems from bad advice 
        that the Defense Department and Service counselors gave 
        to VEAP participants. . . . Compared to the current 
        MGIB basic rate of $528 per month, VEAP users would 
        exhaust the government-funded portion of the maximum 
        benefit in only 10 months or about one academic year. . 
        . . But the greater problem is that for years Service 
        counselors advised VEAP participants to cash out their 
        VEAP accounts and invest the money for their education 
        in the belief that they could make a VEAP contribution 
        before separation. . . . As a matter of fairness and 
        morale for the active duty career force and to enhance 
        their readjustment opportunities, The Retired Officers 
        Association strongly supports ``VEAP Conversion'' as 
        recommended by the Principi Commission [Commission on 
        Servicemembers and Veterans Transition Assistance].

    The committee believes affording servicemembers who either 
turned down a previous opportunity to convert or had a zero 
balance in their VEAP account is much more desirable than 
having these individuals return to civilian life without any 
education benefits. Most individuals who will be eligible to 
convert to MGIB benefits under this provision now have over 15 
years of service. Many will need retraining to compete in the 
civilian work force. Finally, the committee is advised that 
some of those who withdrew their contribution to their VEAP 
accounts did so on the advice of their service branch, 
particularly the Air Force.

 INCREASE IN RATES OF SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE

    The reported bill would increase such benefits for full-
time students from $485 to $600 per month effective October 1, 
2000, and $720 per month effective October 1, 2002, with 
proportional increases for part-time students; it also 
authorizes an annual cost-of-living adjustment.
    Survivors' and Dependents' Educational Assistance (DEA) 
benefits are provided to the surviving spouse and dependent 
children of an individual who dies either on active duty or due 
to a service-connected cause. The same benefits are furnished 
to the spouse and dependent children of veterans who are 
permanently and totally disabled due to a service-connected 
injury or illness. The Congress provided that the purpose of 
this program is to ``. . . provide opportunities for education 
to children whose education would otherwise be impeded or 
interrupted by reason of the disability or death of a parent 
from a disease or injury incurred or aggravated in the Armed 
Forces. . . and for the purpose of aiding such children in 
attaining the educational status which they might normally have 
aspired to and obtained but for the disability or death of such 
parent.'' With respect to the spouse of the deceased 
servicemember or permanently and totally disabled veteran, the 
purpose of the benefit is to assist spouses ``in preparing to 
support themselves and their families at a standard of living 
level which the veterans, but for the veterans' death or 
service disability, could have expected to provide for the 
veteran's family.'' About 48,000 beneficiaries use education 
benefits annually through this program.
    Currently, the DEA rate is $485 per month for full-time 
students, and $365 and $242 for students carrying three-quarter 
and half-time loads, respectively. In 1985, DEA benefits to 
full-time students paid 83 percent of the average cost of 
attendance at a four-year public college. Current benefits, 
however, cover dramatically less. The benefit afforded to full-
time students would have to be increased to $971 to achieve 
parity with the 1985 benefit's educational purchasing power. 
Ms. Margaret Murphy Peterson, Legislative Committee Director of 
the Gold Stars Wives of America, Inc., testified on the 
importance of realistic educational opportunities for widows:

          Just as veterans face a transition when leaving the 
        military service and entering civilian life, so do 
        military/veterans' spouses and children experience a 
        tough transition when they become widows and orphans. 
        Our transition usually involves the uniquely military 
        hardships, including eviction from [military] quarters, 
        a major household move, and taking the children out of 
        school--many times in mid-year--in addition to the 
        usual hardships, including sudden substantial loss in 
        household income and emotional turmoil. . . . In 1998, 
        only 2,331 widows (less than 1 percent of all DIC 
        recipients) used their Survivors' and Dependents' 
        Educational Assistance benefits. The participation rate 
        is low because the benefit primarily appeals to, and 
        benefits, the younger widowed spouse, who typically is 
        raising children. The current program which pays $480 
        per month barely pays their [child] care. There is 
        rarely money left over for tuition or books. These 
        educational expenses are largely paid from the widow's 
        DIC and Social Security, which is hard to justify to 
        the children.

    The committee believes the rate increase provided by 
section 4 is a necessary minimum step toward accomplishing the 
purposes stated in section 3500 of title 38, United States 
Code.

    ADJUSTED EFFECTIVE DATE FOR AWARD OF SURVIVORS' AND DEPENDENTS' 
                         EDUCATIONAL ASSISTANCE

    The reported bill would permit the award of Survivors' and 
Dependents' Educational Assistance (DEA) payments to be 
retroactive to the date of entitlement, that is, service-
connected death or award of 100 percent disability rating.
    The committee's objective is to propose an equitable 
solution for awarding retroactive DEA benefits when there is 
significant administrative delay in establishing entitlement to 
such benefits.
    This concern is illustrated by the case of a surviving 
spouse who files a claim for dependency and indemnity 
compensation (DIC) and must wait more than a year for a final 
VA decision on service connection for the veteran's death. If 
VA adjudicates the veteran's death as service-connected, VA 
generally will award DIC benefits from the day the veteran 
died. However, under section 5113 of title 38, United States 
Code, when the child subsequently seeks DEA benefits from the 
date of the veteran's death, he or she may be paid 
retroactively only for training pursued within one year or the 
date of the child's DEA claim.
    The Court of Appeals for Veterans Claims has held that a 
child must file his or her DEA claim independent of the 
surviving spouse's DIC claim. Pfau v. West, 12 Vet.App. 515 
(1999); Erspamer v. Brown, 9 Vet.App 507 (1996). Therefore, 
when a child waits for disposition of the DIC claim before 
filing the DEA claim, he or she may not be able to receive 
payment for training undertaken in the interim. A parallel 
situation exists when the child wishes to claim DEA and the 
veteran's claim for disability compensation is unresolved. The 
DEA claim must be independent of the veterans' claim for a 100 
percent service-connected disability. The committee notes the 
October 28, 1999, testimony of Celia P. Dollarhide, Director of 
the Education Service at the Department of Veterans Affairs, in 
support for clarifying the law:

          We do not disagree with the court's analysis of 
        current law. Yet, we must acknowledge that a child 
        seeking DEA assistance may be placed in a difficult 
        position because the child's claim of entitlement 
        necessarily derives from the status of the veterans' 
        claim for permanent and total disability or the 
        surviving spouse's DIC claim. If VA has not decided or 
        has denied the parent's compensation or DIC claim due 
        to failure to establish the requisite service 
        connection, it may be too much to expect the child, 
        nevertheless, to appreciate the need to file a timely 
        claim in order to preserve his or her rights. 
        Accordingly, we believe it is appropriate to consider 
        amendatory legislation that would provide certain 
        children a reasonable measure of relief in such 
        circumstances. . . . We would suggest, however, that it 
        be limited to children who reached age 18 and were in 
        school while the claim for DIC or 100 percent service-
        connected disability was still pending.

    The committee believes the relief proposed by section 5 is 
a reasonable step toward addressing this unique situation in 
which some dependent children find themselves.

    REVISION OF EDUCATIONAL ASSISTANCE INTERVAL PAYMENT REQUIREMENTS

    The reported bill would authorize VA to continue payment of 
monthly educational assistance benefits to veterans enrolled at 
educational institutions during periods between terms if the 
interval between such periods does not exceed eight weeks.
    Current law allows VA to pay only for intervals between 
terms that do not exceed a full calendar month. The purpose for 
paying benefits during term breaks is to allow the student 
whose enrollment is essentially continuous to receive 
uninterrupted educational assistance from VA since the veteran 
continues to incur subsistence expenses during the interval. 
The effect of current law was brought to the committee's 
attention by the Honorable Robert W. Ney (R-OH), who testified 
at the committee's October 28, 1999, hearing with respect to 
how current law affects about 360 veteran students at Ohio 
University:

          . . . Ohio University's extended break between fall 
        and winter quarter . . . runs from the day prior to 
        Thanksgiving until the day after New Years; this break 
        averages about 40 days or six weeks of down time. Ohio 
        University is one of only a few public universities 
        that provides such a lengthy break from classes within 
        an academic year. . . . It is not reasonable to punish 
        veterans by withholding their December benefits when 
        they do not have the option of enrolling in course work 
        between the fall and winters quarters that is 
        appropriate to their academic programs. . . . I believe 
        if veterans have completed the fall quarter courses and 
        have registered for winter courses, they have verified 
        a commitment to continuous status and should be 
        eligible for continuous benefit payments.

    The committee recognizes that veterans who receive benefits 
during a long interval will exhaust their entitlement at a rate 
faster than if they were not paid at such intervals. The 
committee hopes that veteran students will act responsibly and 
carefully consider this use of entitlement when making a 
decision to accept benefits during breaks in their school 
terms. Nevertheless, the committee strongly encourages VA to 
notify affected veteran students of the effect on their 
entitlement by appropriate, cost-effective means.

 AVAILABILITY OF MONTGOMERY GI BILL BENEFITS FOR PAYMENT FOR LICENSING 
                         OR CERTIFICATION TESTS

    The reported bill would extend MGIB benefits to cover the 
costs of licensing or certification for certain vocations or 
professions. In 1997 when The American Legion published its 
watershed analysis entitled ``Study of Civilian Licensure and 
Certification for Veterans'', which was funded by the Veterans 
Employment and Training Service of the Department of Labor, it 
became clear that licensing and certification issues were 
having an ever-growing affect on veterans seeking quality 
employment in the civilian labor market. The American Legion 
study found that about 38 percent of all separating 
servicemembers have military occupational specialties with 
civilian counterpart occupations requiring certification or 
licensure. The Legion's study showed that civilian 
credentialing could pose a significant barrier to employment 
for transitioning military personnel. The statement of James B. 
Hubbard, Director of The American Legion's Economics 
Commission, commented on this point:

          Leaving active duty military service is a landmark in 
        one's life. It involves decisions that will affect 
        veterans and their families for the rest of their days. 
        Every recently separated veteran faces similar 
        challenges. They need a job, they need housing, and 
        they need health care. Meaningful employment is 
        essential to meeting these challenges. Removal of a 
        paper-barrier will help make a fully qualified, 
        recently separated veteran job ready. (emphasis in 
        original)

    The Congressional Budget Office (CBO) estimates that about 
25,000 servicemembers separate each year with training in areas 
that are subject to testing and licensure by civilian 
authorities. CBO estimates the average cost of such tests to be 
$150. The committee also notes testimony it received from Mr. 
Steven C. Halsey of the Coalition for Professional 
Certification. The Coalition is a diverse group of private 
sector national certification bodies that have come together to 
assist in the promulgation of effective governmental policies, 
laws and procedures relative to the private sector 
certification industry. The Coalition notes that there are 
noncredible programs operating on the diploma-mill format of 
the past, and suggest a minimal standard to avoid federal funds 
being paid to unscrupulous certification vendors. To this end, 
the committee bill defines the minimal characteristics required 
of a certification and licensing body from which veterans may 
be reimbursed for the cost of certification under the MGIB.

               EXTENSION OF CERTAIN TEMPORARY AUTHORITIES

    The reported bill would extend to December 31, 2008, 
current laws which would otherwise expire on September 30, 
2002, or December 31, 2002. The committee extends these 
authorities to capture the offsets to fund the provisions in 
its bill. These extensions include five title 38, United States 
Code, authorities.

    VA enhanced loan asset authority.--Section 3720(h) of title 
38, United States Code, authorizes VA to guarantee the timely 
payment of principal and interest to purchasers of real estate 
mortgage investment conduits (REMICS). REMICS are used to 
``bundle'' and market vendee loan notes. Such notes are made on 
direct loans by VA to purchasers of VA-acquired real estate. 
Using this authority, VA guarantees to REMIC purchasers that 
principal and interest will be paid in a timely manner, which 
in turn enhances the value of the REMICs in the secondary 
market and increases the return to VA when such securities are 
sold. Under Public Law 105-33 this authority would expire 
December 31, 2002.

    VA home loan fees.--Section 3729 of title 38, United States 
Code, specifies that borrowers who obtain VA-guaranteed, 
insured or direct home loans will pay a fee. For first loans, 
the fees range from 0.5 percent to 2 percent, depending on the 
amount of down payment and the type of military or naval 
service (active duty or reserve). Public Law 103-66, the 
Omnibus Budget Reconciliation Act of 1993 (OBRA '93), added 
section 3729(a)(4) to title 38, U.S.C., to require a surcharge 
of 0.75 percent for all first-use loans. Under Public Law 105-
33 this authority was extended to September 30, 2002. There is 
no limitation on the number of times a veteran may use the VA 
home loan program. Section 3729 of title 38, U.S.C., requires a 
3 percent fee for all second and subsequent home loans with 
less than 5 percent down payment.

    Procedures applicable to liquidation sales of defaulted 
home loans guaranteed by VA.--Section 3732 of title 38, United 
States Code, specifies that VA has two options when a property, 
the financing of which is guaranteed under the VA Home Loan 
Guaranty Program, goes to foreclosure. VA may simply pay off 
the guaranty, or elect to purchase the property securing the 
loan in default and resell it. The decision on the course of 
action to take depends, generally, on VA calculations as to 
which action would be less costly and, therefore, more 
advantageous to the government. The Secretary's authority to 
use ``no-bid'' procedures, by which VA determines which option 
is more advantageous, expires on September 30, 2002.

    Income verification authority.--VA administers a needs-
based pension program and provides priority access to health 
care services on a means-tested basis. Section 5317 of title 
38, United States Code, and section 6103 of the Internal 
Revenue Code of 1986, authorizes VA to verify the eligibility 
of recipients of, or applicants for, VA needs-based benefits 
and VA means-tested medical care by gaining access to income 
records of the Department of Health and Human Services/Social 
Security Administration and the Internal Revenue Service. These 
provisions were originally enacted as section 8051 of Public 
Law 101-508, the Omnibus Budget Reconciliation Act of 1990 
(OBRA '90), and were last extended by Public Law 105-33, to 
September 30, 2002.

    Limitation on VA pension for certain recipients of 
Medicaid-covered nursing home care.--Section 5503(f) of title 
38, United States Code, limits to $90 per month the maximum 
amount of VA pension that may be paid to Medicaid-eligible 
veterans and surviving spouses who have no dependents and who 
are in nursing homes that participate in Medicaid. The payments 
may not be used to offset the costs of care. This section 
treats such individuals as if the care were being furnished at 
VA expense. This provision was originally enacted as section 
8003 of OBRA '90, and was last extended by Public Law 105-33 to 
September, 30, 2000. VA pension is a needs-based program that 
provides a minimum level of income to wartime veterans who are 
permanently and totally disabled due to non-service-connected 
causes. The minimum level of income is approximately equal to 
the poverty level, with additional amounts payable for 
dependents. Pension payments are offset dollar-for-dollar by 
any household income and can also be adjusted for unusual 
medical expenses. The basic annual rate for a single veteran 
with no dependents is $8,989. This amount increases to $14,999 
for single veterans who receive additional ``aid and 
attendance'' benefits.

 Codification of recurring provisions in annual Department of Veterans 
                      Affairs appropriations acts

    Each year the Congress appropriates funds to the Department 
of Veterans Affairs as part of the Departments of Veterans 
Affairs and Housing and Urban Development, Independent Agencies 
Appropriations Act (VA-HUD appropriations bill). Although the 
amount of the appropriation varies from year to year, the 
purposes for which appropriations are made are generally fixed, 
and change little if at all from year to year. Because the 
style of appropriations language discourages normal punctuation 
or sentence structure, some of the ``sentences'' making 
appropriations exceed a page in length. In order to make 
language appropriating funds to VA more comprehensible and 
easier for the average person to read, the reported bill 
includes provisions which codify in title 38, United States 
Code, the authorities for which the Department may spend 
appropriated funds. This language has been repeatedly enacted 
in the VA-HUD appropriations bill for many years, and this 
codification will eliminate the need to repeat this language in 
future appropriations bills. It does not have any substantive 
effect on the purposes for which funds have been appropriated 
in the past, and is intended to consolidate in one section of 
title 38, U.S.C., many of the non-title 38 provisions for which 
VA may spend appropriated funds.

         REINSTATEMENT OF CERTAIN PERIODIC REPORTS TO CONGRESS

    The Federal Reports Elimination and Sunset Act of 1995 
repealed a number of agency report requirements which Congress 
had imposed during the 20th Century. The effect of that law, 
which otherwise would have taken effect last year, was 
temporarily suspended until May 15, 2002, by a provision in 
last year's omnibus appropriations act, Public Law 106-113. The 
committee has considered whether it still has a need for the VA 
reports covered by the 1995 law. It has determined that several 
of these reports should be continued, but will reexamine their 
usefulness when the reports would again be scheduled to expire 
under the committee bill. The committee bill reinstates the 
requirement that the Secretary provide periodic reports 
concerning:

    1. Lequitable relief granted by the Secretary to an 
individual beneficiary (expires December 31, 2004);

    2. Lthe work and activities of the Department;

    3. Lprograms and activities examined by the Advisory 
Committees on a) Former Prisoners of War and b) Women Veterans 
(expires after biennial reports submitted in 2003);

    4. Lthe operation of the Montgomery GI Bill educational 
assistance program (expires December 31, 2004); and

    5. Lthe activities of the Secretary's special medical 
advisory group (expires December 31, 2004).

    In addition, the bill requires the Secretary to include 
with any report that is required by law or by a joint 
explanatory statement of a Congressional conference committee 
an estimate of the cost of preparing the report.

                      Section-By-Section Analysis

    Section 1 would provide that this Act may be cited as the 
``Veterans and Dependents Millennium Education Act''.

    Section 2(a) would amend section 3015(a), which is 
applicable to veterans who complete a three-year period of 
active duty and section 3015(b), which is applicable to 
veterans who complete less than three years. This section would 
amend section 3015(a)(1) of title 38, United States Code, by 
increasing by $184 the basic monthly education benefit for 
full-time students' rates to $720 effective October 1, 2002, 
and section 3015(b)(1) by increasing by $149 the basic monthly 
education benefit for full-time students' rates to $585 
effective October 1, 2002. This section also amends section 
3015(a)(1) by increasing by $64 the basic monthly education 
benefit for full-time students' rates to $600 effective October 
1, 2000, and section 3015(b)(1) by increasing by $51 the basic 
monthly education benefit for full-time students to $487 
effective October 1, 2000.

    Section 2(b) would amend section 3015(g) of title 38, 
United States Code, to provide that there shall be no cost-of-
living adjustment for fiscal years 2001 and 2003.

    Section 3 would amend section 3018C(a)(2) to allow an 
individual who was a participant in the Post-Vietnam Era 
Educational Assistance Program (VEAP) at any time on or before 
October 9, 1996 (including those who had zero dollars in their 
VEAP account at that time or declined an opportunity to convert 
to the Montgomery GI Bill) and has continuously served on 
active duty from October 9, 1996, to make an irrevocable 
election to convert to the MGIB. Proposed section 
3018(b)(1)(A), would require the individual to make a $2,700 
payment before discharge or release, in a manner determined by 
the service secretary involved. The one-year period in which to 
make such an election would begin on the date of enactment. To 
the extent that the basic pay is not reduced by $2,700 prior to 
discharge or release proposed section 3018C(b)(1)(B), would 
require the Secretary concerned to collect such funds from the 
individual or reduce the retired or retainer pay of the 
individual. The Secretary concerned shall provide for an 18-
month period from such election for the individual to make the 
appropriate payment.

    Section 4(a) reflects changes in rates for individuals 
eligible for the Survivors' and Dependents' Education 
Assistance program effective October 1, 2002. This section 
would amend section 3532(a)(1) by increasing by $235 the basic 
monthly education benefit for full-time students to $720, by 
$175 for three-quarter time students to $540, by $118 to $360 
for half-time pursuit, all effective October 1, 2002. This 
section would make corresponding changes to maximum payments 
for less than half-time training and a full-time program of 
education which consists of institutional courses and alternate 
phases of training in a business or industrial establishment at 
section 3532(a)(2)((b). Finally, this section also would amend 
the allowance for the farm cooperative program in 3532(c)(2) by 
increasing by $190 the amount for full-time training to $582, 
by increasing by $142 the amount for three-quarter time 
training to $436, and by increasing by $95 the amount for half-
time training to $291.

    Section 4(a) also reflects changes in rates which would be 
effective October 1, 2000. This section would amend section 
3532(a)(1) by increasing by $115 the basic monthly allowance 
for full-time students to $600 per month, by increasing by $85 
the three-quarter time rate to $450, and by increasing by $58 
the half-time rate to $300. This section would make 
corresponding changes to maximum payments for less-than-half-
time training and a full-time program of education which 
consists of institutional courses and alternate phases of 
training in a business or industrial establishment. This 
section would also amend the allowance for the farm cooperative 
program in section 3532(c)(2) by increasing by $93 the amount 
for full-time training to $485, by increasing by $70 the amount 
for three-quarter time training to $364, and by increasing by 
$46 the amount for half-time training to $242.

    Section 4(b) amends section 3534(b) of title 38, United 
States Code, with respect to correspondence courses by 
increasing the charge to total entitlement by $235 to $720 for 
each month of entitlement used, effective October 1, 2002, with 
a monthly charge for each $600 in entitlement used effective 
October 1, 2000.

    Section 4(c) amends section 3542(a), title 38, United 
States Code, with respect to special restorative training by 
increasing the special training allowance by $235 to $720 per 
month effective October 1, 2002, and by $115 to $600 per month 
effective October 1, 2000. If the charges for tuition and fees 
applicable to any such course are currently more than $152 per 
calendar month, the basic monthly allowance may be increased by 
the amount that such charges exceed $152 a month, upon election 
by the parent or guardian of the eligible person to have such 
person's period of entitlement reduced by one day for each 
$16.16 that the special training allowance exceeds the basic 
monthly allowance. Effective October 1, 2002, the $152 per 
month ``maximum'' figure would increase by $73 to $225 per 
month and effective October 1, 2000 such figure would increase 
by $33 to $188 per month. Further, effective October 1, 2002, 
the $16.16 per day entitlement reduction figure would increase 
to $24, and effective October 1, 2000, to $20.

    Section 4(d) amends section 3687(b)(2) effective October 1, 
2002, with respect to apprenticeship or other on-job training 
by increasing by $171 to $524 the monthly amount for such 
training for the first six months, by increasing by $128 to 
$392 the monthly amount for the second six months, by 
increasing by $85 to $260 the monthly amount for the third six 
months, and by increasing by $43 to $131 the monthly amount for 
the fourth and any succeeding six-month periods of training. 
Section 4(d) would also amend section 3687(b)(2) effective 
October 1, 2000, by increasing by $84 to $437 the monthly 
amount for training for the first six months, by increasing by 
$63 to $327 the monthly amount for the second six months, by 
increasing by $41 to $216 the monthly amount for the third six 
months, and by increasing by $21 to $109 the monthly amount for 
the fourth and any succeeding six-month periods.

    Section 4(e) would add a new section 3564 to chapter 35 to 
authorize an annual cost-of-living adjustment based on the 
Consumer Price Index. A conforming change would also be made to 
section 3687 to authorize adjustments in the amounts payable to 
persons in apprenticeship or on-job training programs.

    Section 5 would amend section 5113 of title 38, United 
States Code, to permit the award of Survivors' and Dependents' 
Educational Assistance payments to be retroactive to the date 
of the entitling event, that is service-connected death or 
award of 100 percent disability rating.

    Section 6 would amend section 3680(a) to allow monthly 
educational assistance benefits for chapters 30, 31, 32, 34, 
and 35 to be paid for intervals between semesters, terms or 
quarters of up to eight weeks.

    Section 7(a) would amend section 3452(b) to include within 
the definition of ``program of education'' for which the 
Montgomery GI Bill may be used licensing or certification tests 
required for vocations or professions as offered by a licensing 
and credentialing organization or entity approved by the 
Secretary pursuant to procedures established by the Secretary. 
The amount of educational assistance payable under this section 
for a licensing or certification test is the fee charged for 
the test. In promulgating regulations to establish procedures 
to approve licensing and credentialing organizations, the 
Secretary shall consult with such organizations with 
demonstrated expertise in licensing and credentialing that the 
Secretary deems appropriate.

    Section 8(a) would amend section 3720(h)(2) to extend the 
Secretary's authority to issue and guarantee securities 
representing an interest in home loans made by the Secretary to 
December 31, 2008.

    Section 8(b) would amend section 3729(a) to extend the 
Secretary's authority to collect higher home loan fees to 
December 31, 2008.

    Section 8(c) would amend section 3732(c)(11) to extend 
procedures applicable to liquidation sales on defaulted home 
loans guaranteed by the Department of Veterans Affairs to 
December 31, 2008.

    Section 8(d) would amend section 5317(g) to extend the 
Secretary's authority to verify income information with 
information maintained by the Secretary of Treasury or 
Secretary of Health and Human Services to December 31, 2008.

    Section 8(e) would amend section 5503(f)(7) to extend the 
limitation on VA pension benefits to veterans or other 
individuals without dependents who are receiving Medicaid-
covered nursing home care to December 31, 2008.

    Section 9(a)(1) of the reported bill would amend section 
313 of title 38, United States Code, entitled ``Availability of 
appropriations'', by adding new subsections (c) through (h).

    The proposed subsections would codify in one section in 
title 38, United States Code, the various provisions of law 
which are cited each year in the appropriations act as the 
authority for making funds available to the Department of 
Veterans Affairs. Proposed section 313(c) lists the purposes 
for which payments may be made from the compensation and 
pensions appropriation account. Proposed section 313(d) lists 
the purposes for which appropriations made for medical care may 
be spent. Proposed section 313(e) lists the purposes for which 
appropriations made for medical administration and 
miscellaneous operating expenses may be spent. Proposed section 
313(f) lists the purposes for which appropriations made for 
general operating expenses may be spent. Proposed section 
313(g) lists the purposes for which appropriations made for 
construction, major projects may be spent. Proposed section 
313(h) lists the purposes for which appropriations made for 
construction, minor projects may be spent.

    Section 9(a)(2) of the bill would add a new section 116 to 
title 38, United States Code, entitled ``Definition of cost of 
direct and guaranteed loans''. This new section would codify 
language which has been carried in the appropriations act for 
the Department for the last several Congresses to incorporate 
the definition of such loans contained in section 502 of the 
Congressional Budget Act of 1974.

    Section 10(a) of the reported bill would amend the Federal 
Reports Elimination and Sunset Act of 1995 (31 United States 
Code 1113 note) by providing that it does not apply to the 
following periodic reports which a provision codified in title 
38, United States Code, requires an official of the Department 
of Veterans Affairs to make:

      LReport on equitable relief granted by the 
Secretary to an individual beneficiary (section 503(c) of title 
38, United States Code) (would expire December 31, 2004);

      LReport on the work and activities of the 
Department (section 529 of title 38, United States Code);

      LReport on programs and activities examined by 
the Advisory Committees on a) Former Prisoners of War and b) 
Women Veterans (section 541(c) and section 542(c) of title 38, 
United States Code) (would expire after biennial reports 
submitted in 2003);

      LReport on the operation of the Montgomery GI 
Bill educational assistance program (section 3036 of title 38, 
United States Code) (would expire December 31, 2004); and

      LReport on the activities of the Secretary's 
special medical advisory group (section 7312(d) of title 38, 
United States Code) (would expire December 31, 2004).

    Section 10(b) repeals two obsolete reporting requirements 
pertaining to the furnishing of health care to members of the 
Armed Forces during a war or national emergency (section 
8111A(f) of title 38, United States Code), and assistance in 
the establishment of new medical schools (section 8201(h) of 
title 38, U.S.C.).

    Section 10(c) establishes new expiration dates as set forth 
above for five of the six reports which section 10(a) requires 
the Department to provide to Congress.

    Section 10(d) would add a new section 117 to chapter 1 of 
title 38, United States Code, entitled ``Reports to Congress: 
cost information''. This section would require the Secretary to 
include with every report prepared in accordance with a law or 
Congressional directive a statement of the cost of preparing 
the report and a brief explanation of the methodology used in 
preparing the cost estimate.

                           Oversight Findings

    No oversight findings have been submitted to the committee 
by the Committee on Government Reform.

                            Roll Call Votes

    During Committee consideration of H.R. 4268, there was a 
recorded vote on an amendment offered by Mr. Filner to increase 
the monthly benefit to $975. The amendment was rejected on a 
roll call vote of 6-15. The vote of Committee Members is as 
follows:

Date:         Thursday, May 11, 2000
Call to Order: 11:25 a.m.
Adjourn:      12:10 p.m.
Subject:      Filner Amendment to H.R. 4268, Veterans and De-   
                pendents Millennium Education Act



----------------------------------------------------------------------------------------------------------------
                 NAME                            YEA                      NAY                   NOT VOTING
----------------------------------------------------------------------------------------------------------------
Bob Stump, AZ, Chairman..............    .....................  x......................
Chris Smith, NJ, Vice Chairman.......    .....................  x......................
Michael Bilirakis, FL................    .....................  x......................
Floyd Spence, SC.....................    .....................  x......................
Terry Everett, AL....................    .....................  x......................
Steve Buyer, IN......................    .....................    .....................  x
Jack Quinn, NY.......................    .....................  x......................
Cliff Stearns, FL....................    .....................    .....................  x
Jerry Moran, KS......................    .....................    .....................  x
J.D. Hayworth, AZ....................    .....................  x......................
Helen Chenoweth, ID..................    .....................    .....................  x
Ray LaHood, IL.......................    .....................  x......................
Jim Hansen, UT.......................    .....................  x......................
Howard (Buck) McKeon, CA.............    .....................  x......................
Jim Gibbons, NV......................    .....................    .....................  x
Mike Simpson, ID.....................    .....................    .....................  x
Richard Baker, LA....................    .....................    .....................  x

Lane Evans, IL, Ranking..............    .....................  x......................
Bob Filner, CA.......................  x......................    .....................
Luis Gutierrez, IL...................    .....................    .....................  x
Corrine Brown, FL....................  x......................    .....................
Mike Doyle, PA.......................    .....................  x......................
Collin Peterson, MN..................    .....................    .....................  x
Julia Carson, IN.....................  x......................    .....................
Silvestre Reyes, TX..................    .....................  x......................
Vic Snyder, AR.......................    .....................  x......................
Ciro Rodriguez, TX...................    .....................    .....................  x
Ronnie Shows, MS.....................  x......................    .....................
Shelley Berkley, NV..................  x......................    .....................
Baron P. Hill, IN....................    .....................  x......................
Tom Udall, NM........................  x......................    .....................

          TOTAL......................  6......................  15.....................  10
----------------------------------------------------------------------------------------------------------------


    There was also a roll call vote on final passage of H.R. 
4268 of 21-0. The vote of Committee Members is as follows:

Date:         Thursday, May 11, 2000
Call to Order: 11:25 a.m.
Adjourn:      12:10 p.m.
Subject:      Final Passage H.R. 4268, Veterans and Dependents  
                 Millennium Education Act



----------------------------------------------------------------------------------------------------------------
                 NAME                            YEA                      NAY                   NOT VOTING
----------------------------------------------------------------------------------------------------------------
Bob Stump, AZ, Chairman..............  x......................    .....................
Chris Smith, NJ, Vice Chairman.......  x......................    .....................
Michael Bilirakis, FL................  x......................    .....................
Floyd Spence, SC.....................  x......................    .....................
Terry Everett, AL....................  x......................    .....................
Steve Buyer, IN......................    .....................    .....................  x
Jack Quinn, NY.......................  x......................    .....................
Cliff Stearns, FL....................    .....................    .....................  x
Jerry Moran, KS......................    .....................    .....................  x
J.D. Hayworth, AZ....................  x......................    .....................
Helen Chenoweth, ID..................    .....................    .....................  x
Ray LaHood, IL.......................  x......................    .....................
Jim Hansen, UT.......................  x......................    .....................
Howard (Buck) McKeon, CA.............  x......................    .....................
Jim Gibbons, NV......................    .....................    .....................  x
Mike Simpson, ID.....................    .....................    .....................  x
Richard Baker, LA....................    .....................    .....................  x

Lane Evans, IL, Ranking..............  x......................    .....................
Bob Filner, CA.......................  x......................    .....................
Luis Gutierrez, IL...................    .....................    .....................  x
Corrine Brown, FL....................  x......................    .....................
Mike Doyle, PA.......................  x......................    .....................
Collin Peterson, MN..................    .....................    .....................  x
Julia Carson, IN.....................  x......................    .....................
Silvestre Reyes, TX..................  x......................    .....................
Vic Snyder, AR.......................  x......................    .....................
Ciro Rodriguez, TX...................    .....................    .....................  x
Ronnie Shows, MS.....................  x......................    .....................
Shelley Berkley, NV..................  x......................    .....................
Baron P. Hill, IN....................  x......................    .....................
Tom Udall, NM........................  x......................    .....................

          TOTAL......................  21.....................  0......................  10
----------------------------------------------------------------------------------------------------------------


               Congressional Budget Office Cost Estimate

    The following letter was received from the Congressional 
Budget Office concerning the cost of the reported bill:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 17, 2000.
Hon. Bob Stump,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4268, the Veterans 
and Dependents Millennium Education Act. If you wish further 
details on this estimate, we will be pleased to provide them. 
The CBO staff contact is Sarah Jennings, who can be reached at 
226-2840.
            Sincerely,
                                            Dan L. Crippen,
                                                           Director
    Enclosure.

               congressional budget office cost estimate


H.R. 4268, Veterans and Dependents Millennium Education Act, As ordered 
  reported by the House Committee on Veterans' Affairs on May 11, 2000


    SUMMARY. H.R. 4268 contains provisions that would raise 
direct spending for veterans' readjustment benefits, 
specifically Montgomery GI Bill (MGIB) benefits and educational 
assistance for surviving spouses and dependents of certain 
veterans. The bill would also extend through 2008 certain 
provisions of law related to veterans' housing and pensions 
that are scheduled to expire in 2002. CBO estimates that 
enacting the bill would save about $88 million over the 2001-
2005 period but cost about $660 million over the 2001-2010 
period. (Costs would amount to about $450 million a year after 
2008.)
    H.R. 4268 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
A provision of the bill that would extend the limitation on 
pensions for certain veterans receiving nursing home care under 
Medicaid would increase costs to states by $1.3 billion over 
the next six years. Because states possess flexibility to alter 
programmatic responsibilities to continue to provide required 
services under the Medicaid program, these additional costs are 
not considered mandates under UMRA.

    ESTIMATED COST TO THE FEDERAL GOVERNMENT. The estimated 
budgetary impact of H R. 4268 is shown in the following table. 
The costs of this legislation fall within budget functions 700 
(veterans benefits and services) and 550 (health).



                                                    [By Fiscal Year, Outlays in Millions of Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           2000             2001             2002             2003             2004             2005
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                     DIRECT SPENDING

                                                             Veterans' Readjustment Benefits

Spending Under Current Law........................         1,459            1,473            1,489            1,512            1,545            1,587

Proposed Changes:
  Basic Benefit...................................             0               99              109              227              245              266
  Survivors' and Dependents' Education............             0               34               36               72               79               87
  Tests for Licensing.............................             0                5                5                5                5                5
  Semester Break Benefit..........................             0                3                4                4                4                4
  Retroactive Dependents' Assistance..............             0                1                1                1                1                1
  VEAP Conversion.................................             0              -\1              -\3                0                2                3
                                                   -----------------------------------------------------------------------------------------------------
    Subtotal-Proposed Changes.....................             0              141              152              309              336              366

Spending Under H.R. 4268..........................         1,459            1,614            1,641            1,821            1,881            1,953


                                                                    Veterans' Housing

Spending Under Current Law........................           506              187              154              395              393              390

Proposed Changes..................................             0                0                0            -\266            -\272            -\278

Spending Under H.R. 4268..........................           506              187              154              129              121              112


                                                                   Veterans' Pensions

Spending Under Current Law........................         3,090            3,099            3,060            3,512            3,521            3,851

Proposed Changes:
  Nursing Home....................................             0                0                0            -\459            -\463            -\513
  Income Verification.............................             0                0                0              -\3              -\3              -\2
                                                   -----------------------------------------------------------------------------------------------------
    Subtotal-Proposed Changes.....................             0                0                0            -\462            -\466            -\515

Spending Under H.R. 4268..........................         3,090            3,099            3,060            3,050            3,055            3,336


                                                                        Medicaid

Spending Under Current Law........................       115,145          124,264          134,118          145,081          158,181          172,418

Proposed Changes..................................             0                0                0              285              288              294

Spending Under H.R. 4268..........................       115,145          124,164          134,118          145,366          158,469          172,712


                                                          Summary of Changes in Direct Spending

Estimated Outlays.................................             0              141              152            -\134            -\114            -\133
--------------------------------------------------------------------------------------------------------------------------------------------------------
NOTE: VEAP refers to the Post-Vietnam Era Veterans' Education Assistance Program.


Veterans' Readjustment Benefits

    The bill would change several provisions related to MGIB 
and survivors' and dependents' education benefits.

    Basic Benefit. Under current law, participants in MGIB who 
serve at least three years on active duty are entitled to 
receive up to $553 a month in fiscal year 2001. Those who serve 
two years are entitled to a maximum monthly benefit of $450. 
Section 2 would mandate successive increases in these rates of 
educational assistance. Participating veterans who served at 
least three years on active duty would receive as much as $600 
a month beginning in fiscal year 2001 and up to $720 a month 
beginning in fiscal year 2003. Similar veterans with at least 
two years of active duty would be eligible for a maximum 
benefit of $487 a month in fiscal year 2001 and $569 a month in 
fiscal year 2003. The annual cost-of-living allowances 
scheduled for 2001 and 2003 would not occur. Based on current 
rates of participation in this program, CBO estimates that this 
section would increase direct spending by about $100 million in 
2001, about $950 million over the 2001-2005 period, and about 
$2.5 billion over the 2001-2010 period.

    Survivors' and Dependents' Education. Section 4 would 
increase educational assistance to survivors and dependents to 
$600 a month in 2001 and $720 a month in 2003. That would 
represent an increase over current rates of 24 percent and 48 
percent, respectively. The benefit would grow more in 
subsequent years because section 4 would authorize a cost-of-
living increase for fiscal years after 2003. Based on current 
rates of participation in this program, CBO estimates this 
provision would increase direct spending by $34 million in 
fiscal year 2001, about $310 million during the 2001-2005 
period, and about $830 million in the 2001-2010 period.

    Tests for Licensing or Certification. Section 7 would 
extend MGIB benefits to cover the cost of tests required for 
occupational licensing or certification. Based on a study 
prepared for the Congressional Commission on Servicemembers and 
Veterans Transition Assistance, approximately 38 percent of 
servicemembers separating each year have training in areas that 
are subject to testing and licensure. CBO expects that less 
than half of them would remain in that occupation, be tested, 
and apply for reimbursement from the Department of Veterans 
Affairs (VA). Based on an average cost of $175, CBO estimates 
this provision would increase direct spending by about $5 
million a year.

    Semester Break Benefit. Under current law, monthly 
veterans' education benefits are paid between terms only if the 
break does not exceed one calendar month. Section 6 would allow 
benefits to be paid during a break of up to eight weeks. Based 
on information from the VA, this would affect the benefits of 
approximately 3,000 students annually and would cost about $4 
million a year.

    Retroactive Dependents' Assistance. Current law requires 
that a veteran be found to have a service-connected disability 
rated at 100 percent or a spouse be found eligible for 
Dependency and Indemnity Compensation (DIC), before a dependent 
can submit a claim for education benefits. Section 5 would 
allow retroactive payment of dependents' education benefits for 
education undertaken after an ultimately successful claim for 
disability or DIC benefits has been made, but before it has 
been approved. Based on information from the Veterans Board of 
Appeals, CBO expects about 75 dependents would seek 
reimbursement under this provision each year. We estimate 
section 5 would increase direct spending by about $1 million 
annually.

    VEAP Conversion. Section 3 would give certain individuals 
on active duty a second opportunity to enroll in MGIB. That 
opportunity would be extended over a one-year period to 
individuals who were enrolled in the Post-Vietnam Era Veterans' 
Education Assistance Program (VEAP) on October 9, 1996. In a 
similar open season in fiscal year 1997, about 55 percent of 
eligible members chose to pay $1,200 each to convert from VEAP 
to MGIB.
    CBO estimates 15 percent of those currently eligible, about 
2,600 servicemembers, would pay contributions of $2,700 to 
convert to MGIB during this open season Because the 
contributions would have to be made before benefits would be 
paid out, this section would not incur significant costs until 
fiscal year 2004. CBO estimates that section 4 would increase 
direct spending by $2 million over the 2001-2005 period and $12 
million over the 2001-2010 period.

Extension of Certain Provisions

    The bill would extend through 2008 the sunset dates on 
several provisions that will otherwise expire in 2002.

    Veterans' Housing. Section 8 would extend through 2008 
three provisions in current law that affect housing programs 
for veterans. The first two provisions reduce the VA loan 
subsidy by charging veterans a fee at the time the loan is 
made. Under subsection (b)(1), VA would charge certain veterans 
a fee of 0.75 percent of the total loan amount. CBO estimates 
this provision would affect roughly 219,000 new loans a year 
and would raise collections by an average of $205 million a 
year beginning in 2003.
    Under current law, veterans can reuse their home loan 
guarantee benefit if their previous debt has been paid in full. 
Subsection (b)2) would require VA to collect a fee of 3 percent 
of the total loan amount from veterans who reuse their benefit. 
CBO estimates this provision would affect roughly 28,500 new 
loans a year and would raise collections by an average of $60 
million a year.
    Section 8 would also extend a provision of law that 
requires VA to consider losses it might incur when selling a 
property acquired through foreclosure. Under current law, VA 
follows a formula defined in statute to decide whether to 
acquire the property or pay off the loan guarantee instead. The 
formula requires appraisals that may be valid at the time they 
are made, but do not account for changes in market conditions 
that might occur while VA prepares to dispose of the property. 
Subsection 8(c) would require VA to take account of losses from 
changes in housing prices that the appraisal does not capture. 
Losses of this type might be prevalent when housing prices are 
particularly volatile or if appraisals are biased for other 
reasons. Based on information from VA, CBO estimates this 
provision would save an average of $10 million a year.

    Veterans' Pensions. Veterans' pensions would be affected by 
two provisions. One of these provisions would reduce direct 
spending for veterans' pensions and increase spending for 
Medicaid, resulting in a net spending reduction of $1.1 billion 
over the 2003-2008 period. After 2008, spending under that 
program would return to the levels under current law.

    Veterans in Medicaid Nursing Homes.--Subsection 8(e) would 
ex-

tend from September 30, 2002, to September 30, 2008, the 
expira-

tion date on a provision of law that sets a $90 per month limit 
on

pensions for any veteran without a spouse or child, or for any 
sur-

vivor of a veteran, who is receiving Medicaid coverage in a 
Medic-

aid-approved nursing home. It also allows the beneficiary to 
retain

the pension instead of having to use it to defray nursing home 
costs.
    Based on VA's experience under current law, CBO estimates 
gross savings for VA of $459 million in 2003. Higher Medicaid 
payments to nursing homes would offset some of the savings 
credited to VA. Those costs would total $285 million in 2003, 
resulting a net savings of $174 million in 2003.

    Income Verification.--Current law authorizes VA to acquire 
information on income reported to the Internal Revenue Service 
(IRS) to verify income reported by recipients of VA pension 
benefits. This authorization expires on September 30, 2002. 
Section 8(d) would extend the expiration date to September 30, 
2008. However, the provision of law that allows the IRS to 
provide the information to VA will expire on September 30, 
2003. Because the bill would not extend both provisions in 
current law, savings would be limited to the effects of a one-
year renewal, which occur in the year that income is reported, 
in his case 2003, and in the following years to reflect the 
continuing effects of the lower pensions. This estimate is 
based on VA's recent experience, which has shown that about $3 
million in new savings is achieved annually through this income 
match.

    PAY-AS-YOU-GO CONSIDERATIONS. The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays that are subject to pay-as-you-go procedures 
are shown in the following table. For the purposes of enforcing 
pay-as-you-go procedures, only the effects in the current year, 
the budget year, and the succeeding four years are counted.


                                                        [By Fiscal Year, in Millions of Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                2000    2001    2002     2003     2004     2005    2006    2007    2008    2009    2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays...........................................       0     141     152    -\134    -\114    -\133    -\75    -\23    -\43     438     452
Changes in receipts..........................................                                        Not Applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------


    INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT. H.R 4268 
contains no intergovernmental or private-sector mandates as 
defined in UMRA, however a provision of the bill would increase 
Medicaid costs for state governments by $1.3 billion over the 
next six years. The provision would extend unti1 2008 the 
limitation, currently set to expire on September 30, 2002, on 
the monthly pension that certain veterans in nursing homes 
covered by Medicaid can receive and retain. The effect of the 
extension would be to require the Medicaid program to continue 
covering 100 percent of the nursing home expenses of those 
veterans after 2002. Because states possess flexibility to 
alter programmatic responsibilities to continue to provide 
required services under the Medicaid program, these additional 
costs are not considered mandates under UMRA.

    ESTIMATE PREPARED BY:
        Federal Costs:
        Readjustment Benefits: Sarah Jennings (226-2840).
        Housing: Sunita D'Monte (226-2840).
        Veterans' Pension: Evan Christman (226-2840).
        Medicaid: Jeanne De Sa (226-9010).

        Impact on State, Local, and Tribal Governments: Susan 
        Sieg Thompkins (225-3220).

        Impact on the Private Sector: Richard L. Fernandez 
        (226-2922).

    ESTIMATE APPROVED BY:
        Peter H. Fontaine, Deputy Assistant Director for Budget 
        Analysis.

                     Inflationary Impact Statement

    The enactment of the reported bill would have no 
inflationary impact.

                  Applicability to Legislative Branch

    The reported bill would not be applicable to the 
legislative branch under the Congressional Accountability Act, 
Public Law 104-1, because the bill would only affect certain 
Department of Veterans Affairs programs and benefits 
recipients.

                     Statement of Federal Mandates

    The reported bill would not establish a federal mandate 
under the Unfunded Reform Act, Public Law 104-4.

                 Statement of Constitutional Authority

    Pursuant to Article I, section 8 of the United States 
Constitution, the reported bill is authorized by Congress' 
power to ``provide for the common Defense and general Welfare 
of the United States.''

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

TITLE 38, UNITED STATES CODE

           *       *       *       *       *       *       *


PART I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


                           CHAPTER 1--GENERAL

Sec.
101.    Definitions.
     * * * * * * *
116.    Definition of cost of direct and guaranteed loans.
117.    Reports to Congress: cost information.
     * * * * * * *

Sec. 116. Definition of cost of direct and guaranteed loans

  For the purpose of any provision of law appropriating funds 
to the Department for the cost of direct or guaranteed loans, 
the cost of any such loan, including the cost of modifying any 
such loan, shall be as defined in section 502 of the 
Congressional Budget Act of 1974 (2 U.S.C. 661a).

Sec. 117. Reports to Congress: cost information

  Whenever the Secretary submits to Congress, or any committee 
of Congress, a report that is required by law or by a joint 
explanatory statement of a committee of conference of the 
Congress, the Secretary shall include with the report--
          (1) a statement of the cost of preparing the report; 
        and
          (2) a brief explanation of the methodology used in 
        preparing that cost statement.

           *       *       *       *       *       *       *


CHAPTER 3--DEPARTMENT OF VETERANS AFFAIRS

           *       *       *       *       *       *       *


Sec. 313. Availability of appropriations

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Compensation and Pension.--Funds appropriated for 
Compensation and Pensions are available for the following 
purposes:
          (1) The payment of compensation benefits to or on 
        behalf of veterans as authorized by section 107 and 
        chapters 11, 13, 51, 53, 55, and 61 of this title.
          (2) Pension benefits to or on behalf of veterans as 
        authorized by chapters 15, 51, 53, 55, and 61 of this 
        title and section 306 of the Veterans' and Survivors' 
        Pension Improvement Act of 1978.
          (3) The payment of benefits as authorized under 
        chapter 18 of this title.
          (4) Burial benefits, emergency and other officers' 
        retirement pay, adjusted-service credits and 
        certificates, payments of premiums due on commercial 
        life insurance policies guaranteed under the provisions 
        of article IV of the Soldiers' and Sailors' Civil 
        Relief Act of 1940 (50 U.S.C. App. 540 et seq.), and 
        other benefits as authorized by sections 107, 1312, 
        1977, and 2106 and chapters 23, 51, 53, 55, and 61 of 
        this title and the World War Adjusted Compensation Act 
        (43 Stat. 122, 123), the Act of May 24, 1928 (Public 
        Law No. 506 of the 70th Congress; 45 Stat. 735), and 
        Public Law 87-875 (76 Stat. 1198).
  (d) Medical Care.--Funds appropriated for Medical Care are 
available for the following purposes:
          (1) The maintenance and operation of hospitals, 
        nursing homes, and domiciliary facilities.
          (2) Furnishing, as authorized by law, inpatient and 
        outpatient care and treatment to beneficiaries of the 
        Department, including care and treatment in facilities 
        not under the jurisdiction of the Department.
          (3) Furnishing recreational facilities, supplies, and 
        equipment.
          (4) Funeral and burial expenses and other expenses 
        incidental to funeral and burial expenses for 
        beneficiaries receiving care from the Department.
          (5) Administrative expenses in support of planning, 
        design, project management, real property acquisition 
        and disposition, construction, and renovation of any 
        facility under the jurisdiction or for the use of the 
        Department.
          (6) Oversight, engineering, and architectural 
        activities not charged to project cost.
          (7) Repairing, altering, improving, or providing 
        facilities in the medical facilities and homes under 
        the jurisdiction of the Department, not otherwise 
        provided for, either by contact or by the hire of 
        temporary employees and purchase of materials.
          (8) Uniforms or uniform allowances, as authorized by 
        sections 5901 and 5902 of title 5.
          (9) Aid to State homes, as authorized by section 1741 
        of this title.
          (10) Administrative and legal expenses of the 
        Department for collecting and recovering amounts owed 
        the Department as authorized under chapter 17 of this 
        title and Public Law 87-693, popularly known as the 
        Federal Medical Care Recovery Act (42 U.S.C. 2651 et 
        seq.).
  (e) Medical Administration and Miscellaneous Operating 
Expenses.--Funds appropriated for Medical Administration and 
Miscellaneous Operating Expenses are available for the 
following purposes:
          (1) The administration of medical, hospital, nursing 
        home, domiciliary, construction, supply, and research 
        activities authorized by law.
          (2) Administrative expenses in support of planning, 
        design, project management, architectural work, 
        engineering, real property acquisition and disposition, 
        construction, and renovation of any facility under the 
        jurisdiction or for the use of the Department, 
        including site acquisition.
          (3) Engineering and architectural activities not 
        charged to project costs.
          (4) Research and development in building construction 
        technology.
  (f) General Operating Expenses.--Funds appropriated for 
General Operating Expenses are available for the following 
purposes:
          (1) Uniforms or allowances therefor.
          (2) Hire of passenger motor vehicles.
          (3) Reimbursement of the General Services 
        Administration for security guard services.
          (4) Reimbursement of the Department of Defense for 
        the cost of overseas employee mail.
          (5) Administration of the Service Members 
        Occupational Conversion and Training Act of 1992 (10 
        U.S.C. 1143 note).
  (g) Construction.--Funds appropriated for Construction, Major 
Projects, and for Construction, Minor Projects, are available, 
with respect to a project, for the following purposes:
          (1) Planning.
          (2) Architectural and engineering services.
          (3) Maintenance or guarantee period services costs 
        associated with equipment guarantees provided under the 
        project.
          (4) Services of claims analysts.
          (5) Offsite utility and storm drainage system 
        construction costs.
          (6) Site acquisition.
  (h) Construction, Minor Projects.--In addition to the 
purposes specified in subsection (g), funds appropriated for 
Construction, Minor Projects, are available for--
          (1) repairs to any of the nonmedical facilities under 
        the jurisdiction or for the use of the Department which 
        are necessary because of loss or damage caused by a 
        natural disaster or catastrophe; and
          (2) temporary measures necessary to prevent or to 
        minimize further loss by such causes.

           *       *       *       *       *       *       *


CHAPTER 5--AUTHORITY AND DUTIES OF THE SECRETARY

           *       *       *       *       *       *       *


SUBCHAPTER I--GENERAL AUTHORITIES

           *       *       *       *       *       *       *


Sec. 503. Administrative error; equitable relief

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Not later than April 1 of each year, the Secretary shall 
submit to Congress a report containing a statement as to the 
disposition of each case recommended to the Secretary for 
equitable relief under this section during the preceding 
calendar year. No report shall be required under this 
subsection after December 31, 2004.

           *       *       *       *       *       *       *


SUBCHAPTER III--ADVISORY COMMITTEES

           *       *       *       *       *       *       *


Sec. 541. Advisory Committee on Former Prisoners of War

  (a)  * * *

           *       *       *       *       *       *       *

  (c)(1) Not later than July 1 of each odd-numbered year 
through 2003, the Committee shall submit to the Secretary a 
report on the programs and activities of the Department that 
pertain to veterans who are former prisoners of war. Each such 
report shall include--
          (A)  * * *

           *       *       *       *       *       *       *


Sec. 542. Advisory Committee on Women Veterans

  (a)  * * *

           *       *       *       *       *       *       *

  (c)(1) Not later than July 1 of each even-numbered year 
through 2003, the Committee shall submit to the Secretary a 
report on the programs and activities of the Department that 
pertain to women veterans. Each such report shall include--
          (A)  * * *

           *       *       *       *       *       *       *


PART III--READJUSTMENT AND RELATED BENEFITS

           *       *       *       *       *       *       *


CHAPTER 30--ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM

           *       *       *       *       *       *       *


SUBCHAPTER II--BASIC EDUCATIONAL ASSISTANCE

           *       *       *       *       *       *       *


        (These amendments shall take effect on October 1, 2002)

Sec. 3015. Amount of basic educational assistance

  (a) The amount of payment of educational assistance under 
this chapter is subject to section 3032 of this title. Except 
as otherwise provided in this section, a basic educational 
assistance allowance under this subchapter shall be paid--
          (1) at the monthly rate of [$528] $720 (as increased 
        from time to time under subsection (g)) for an approved 
        program of education pursued on a full-time basis; or
          (2) at an appropriately reduced rate, as determined 
        under regulations which the Secretary shall prescribe, 
        for an approved program of education pursued on less 
        than a full-time basis.
  (b) In the case of an individual entitled to an educational 
assistance allowance under section 3011 or 3018 of this title 
and whose initial obligated period of active duty is two years, 
a basic educational assistance allowance under this chapter 
shall (except as provided in the succeeding subsections of this 
section) be paid--
          (1) at the monthly rate of [$429] $585 (as increased 
        from time to time under subsection (g)) for an approved 
        program of education pursued on a full-time basis; or

           *       *       *       *       *       *       *


   (For fiscal years 2001 and 2002 this section shall be applied by 
                  substituting the following figures)

Sec. 3015. Amount of basic educational assistance

  (a) The amount of payment of educational assistance under 
this chapter is subject to section 3032 of this title. Except 
as otherwise provided in this section, a basic educational 
assistance allowance under this subchapter shall be paid--
          (1) at the monthly rate of [$528] $600 (as increased 
        from time to time under subsection (g)) for an approved 
        program of education pursued on a full-time basis; or
          (2) at an appropriately reduced rate, as determined 
        under regulations which the Secretary shall prescribe, 
        for an approved program of education pursued on less 
        than a full-time basis.
  (b) In the case of an individual entitled to an educational 
assistance allowance under section 3011 or 3018 of this title 
and whose initial obligated period of active duty is two years, 
a basic educational assistance allowance under this chapter 
shall (except as provided in the succeeding subsections of this 
section) be paid--
          (1) at the monthly rate of [$429] $487 (as increased 
        from time to time under subsection (g)) for an approved 
        program of education pursued on a full-time basis; or

           *       *       *       *       *       *       *


Sec. 3018C. Opportunity for certain VEAP participants to enroll

  (a) Notwithstanding any other provision of law, an individual 
who--
          (1) * * *
          [(2) is serving on active duty (excluding the periods 
        referred to in section 3202(1)(C) of this title) on 
        such date;]
          (2) has continuously served on active duty since 
        October 9, 1996, (excluding the periods referred to in 
        section 3202(1)(C) of this title);

           *       *       *       *       *       *       *

          (5) [during the one-year period beginning on October 
        9, 1996,] during the one-year period beginning on the 
        date of the enactment of the Veterans and Dependents 
        Millennium Education Act, makes an irrevocable election 
        to receive benefits under this section in lieu of 
        benefits under chapter 32 of this title, pursuant to 
        procedures which the Secretary of each military 
        department shall provide in accordance with regulations 
        prescribed by the Secretary of Defense for the purpose 
        of carrying out this section or which the Secretary of 
        Transportation shall provide for such purpose with 
        respect to the Coast Guard when it is not operating as 
        a service in the Navy;
may elect to become entitled to basic educational assistance 
under this chapter.
  [(b) With respect to an individual who makes an election 
under subsection (a) to become entitled to basic education 
assistance under this chapter--
          [(1) the basic pay of the individual shall be reduced 
        (in a manner determined by the Secretary of Defense) 
        until the total amount by which such basic pay is 
        reduced is $1,200; or
          [(2) to the extent that basic pay is not so reduced 
        before the individual's discharge or release from 
        active duty as specified in subsection (a)(4), the 
        Secretary shall collect from the individual an amount 
        equal to the difference between $1,200 and the total 
        amount of reductions under paragraph (1), which shall 
        be paid into the Treasury of the United States as 
        miscellaneous receipts.]
  (b)(1) Subject to paragraph (2), with respect to an 
individual who makes an election under subsection (a) to become 
entitled to basic education assistance under this chapter--
          (A) the basic pay of the individual shall be reduced 
        (in a manner determined by the Secretary concerned) 
        until the total amount by which such basic pay is 
        reduced is $2,700; or
          (B) to the extent that basic pay is not so reduced 
        before the individual's discharge or release from 
        active duty as specified in subsection (a)(4), the 
        Secretary concerned shall collect from the individual, 
        or reduce the retired or retainer pay of the individual 
        by, an amount equal to the difference between $2,700 
        and the total amount of reductions under subparagraph 
        (A), which shall be paid into the Treasury of the 
        United States as miscellaneous receipts.
  (2)(A) The Secretary concerned shall provide for an 18-month 
period, beginning on the date the individual makes an election 
under subsection (a), for the individual to pay that Secretary 
the amount due under paragraph (1).
  (B) Nothing in subparagraph (A) shall be construed as 
modifying the period of eligibility for and entitlement to 
basic education assistance under this chapter applicable under 
section 3031 of this title.

           *       *       *       *       *       *       *


SUBCHAPTER IV--TIME LIMITATION FOR USE OF ELIGIBILITY AND ENTITLEMENT; 
GENERAL AND ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *


Sec. 3032. Limitations on educational assistance for certain 
                    individuals

  (a)  * * *

           *       *       *       *       *       *       *

  (g) The amount of educational assistance payable under this 
chapter for a licensing or certification test described in 
section 3452(b) of this title is the fee charged for the test.

           *       *       *       *       *       *       *


Sec. 3036. Reporting requirement

  (a)  * * *

           *       *       *       *       *       *       *

  [(d)(1) The first report by the Secretary of Defense under 
this section shall be submitted not later than January 1, 1986.
  [(2) The first report by the Secretary under this section 
shall be submitted not later than January 1, 1988.]
  (d) No report shall be required under this section after 
January 1, 2005.

           *       *       *       *       *       *       *


CHAPTER 34--VETERANS' EDUCATIONAL ASSISTANCE

           *       *       *       *       *       *       *


SUBCHAPTER I--PURPOSE; DEFINITIONS

           *       *       *       *       *       *       *


Sec. 3452. Definitions

  For the purposes of this chapter and chapter 36 of this 
title--
  (a)  * * *

           *       *       *       *       *       *       *

  (b) The term ``program of education'' means any curriculum or 
any combination of unit courses or subjects pursued at an 
educational institution which is generally accepted as 
necessary to fulfill requirements for the attainment of a 
predetermined and identified educational, professional, or 
vocational objective. Such term also means any curriculum of 
unit courses or subjects pursued at an educational institution 
which fulfill requirements for the attainment of more than one 
predetermined and identified educational, professional, or 
vocational objective if all the objectives pursued are 
generally recognized as being reasonably related to a single 
career field. Such term also means any unit course or subject, 
or combination of courses or subjects, pursued by an eligible 
veteran at an educational institution, required by the 
Administrator of the Small Business Administration as a 
condition to obtaining financial assistance under the 
provisions of section 7(i)(1) of the Small Business Act (15 
U.S.C. 636(i)(1)). Such term also includes licensing or 
certification tests required for vocations or professions, such 
tests offered by a licensing and credentialing organization or 
entity approved by the Secretary pursuant to procedures 
established by the Secretary.

           *       *       *       *       *       *       *


     CHAPTER 35--SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE

                        subchapter i--definitions

Sec.
3500.    Purpose.
     * * * * * * *

                 subchapter vi--miscellaneous provisions

3561.    Authority and duties of Secretary.
     * * * * * * *
3564.    Annual adjustment of amounts of educational assistance.
     * * * * * * *

SUBCHAPTER IV--PAYMENTS TO ELIGIBLE PERSONS

           *       *       *       *       *       *       *


        (These amendments shall take effect on October 1, 2002)

Sec. 3532. Computation of educational assistance allowance

  (a)(1) The educational assistance allowance on behalf of an 
eligible person who is pursuing a program of education 
consisting of institutional courses shall be paid at the 
monthly rate of [$485] $720 for full-time, [$365] $540 for 
three-quarter-time, or [$242] $360 for half-time pursuit.
  (2) The educational assistance allowance on behalf of an 
eligible person pursuing a program of education on less than a 
half-time basis shall be paid at the rate of (A) the 
established charges for tuition and fees that the educational 
institution involved requires similarly circumstanced 
nonveterans enrolled in the same program to pay, or (B) [$485] 
$720 per month for a full-time course, whichever is the lesser.
  (b) The educational assistance allowance to be paid on behalf 
of an eligible person who is pursuing a full-time program of 
education which consists of institutional courses and alternate 
phases of training in a business or industrial establishment 
with the training in the business or industrial establishment 
being strictly supplemental to the institutional portion, shall 
be computed at the rate of [$485] $720 per month.
  (c)(1) An eligible person who is enrolled in an educational 
institution for a ``farm cooperative'' program consisting of 
institutional agricultural courses prescheduled to fall within 
forty-four weeks of any period of twelve consecutive months and 
who pursues such program on--
          (A) a full-time basis (a minimum of ten clock hours 
        per week or four hundred and forty clock hours in such 
        year prescheduled to provide not less than eighty clock 
        hours in any three-month period),
          (B) a three-quarter-time basis (a minimum of seven 
        clock hours per week), or
          (C) a half-time basis (a minimum of five clock hours 
        per week),

shall be eligible to receive an educational assistance 
allowance at the appropriate rate provided in paragraph (2) of 
this subsection, if such eligible person is concurrently 
engaged in agricultural employment which is relevant to such 
institutional agricultural courses as determined under 
standards prescribed by the Secretary. In computing the 
foregoing clock hour requirements there shall be included the 
time involved in field trips and individual and group 
instruction sponsored and conducted by the educational 
institution through a duly authorized instructor of such 
institution in which the person is enrolled.
  (2) The monthly educational assistance allowance to be paid 
on behalf of an eligible person pursuing a farm cooperative 
program under this chapter shall be [$392] $582 for full-time, 
[$294] $436 for three-quarter-time, and [$196] $291 for half-
time pursuit.

           *       *       *       *       *       *       *


   (For fiscal years 2001 and 2002 this section shall be applied by 
                  substituting the following figures)

Sec. 3532. Computation of educational assistance allowance

  (a)(1) The educational assistance allowance on behalf of an 
eligible person who is pursuing a program of education 
consisting of institutional courses shall be paid at the 
monthly rate of [$485] $600 for full-time, [$365] $450 for 
three-quarter-time, or [$242] $300 for half-time pursuit.
  (2) The educational assistance allowance on behalf of an 
eligible person pursuing a program of education on less than a 
half-time basis shall be paid at the rate of (A) the 
established charges for tuition and fees that the educational 
institution involved requires similarly circumstanced 
nonveterans enrolled in the same program to pay, or (B) [$485] 
$600 per month for a full-time course, whichever is the lesser.
  (b) The educational assistance allowance to be paid on behalf 
of an eligible person who is pursuing a full-time program of 
education which consists of institutional courses and alternate 
phases of training in a business or industrial establishment 
with the training in the business or industrial establishment 
being strictly supplemental to the institutional portion, shall 
be computed at the rate of [$485] $600 per month.
  (c)(1)  * * *

           *       *       *       *       *       *       *

  (2) The monthly educational assistance allowance to be paid 
on behalf of an eligible person pursuing a farm cooperative 
program under this chapter shall be [$392] $485 for full-time, 
[$294] $364 for three-quarter-time, and [$196] $242 for half-
time pursuit.

           *       *       *       *       *       *       *


        (These amendments shall take effect on October 1, 2002)

Sec. 3534. Apprenticeship or other on-job training; correspondence 
                    courses

  (a)  * * *
  (b) Any eligible spouse or surviving spouse shall be entitled 
to pursue a program of education exclusively by correspondence 
and be paid an educational assistance allowance as provided in 
section 3686 (other than subsection (a)(2)) of this title and 
the period of such spouse's entitlement shall be charged with 
one month for each [$485] $720 which is paid to the spouse as 
an educational assistance allowance for such course.

           *       *       *       *       *       *       *


   (For fiscal years 2001 and 2002 this section shall be applied by 
                  substituting the following figures)

Sec. 3534. Apprenticeship or other on-job training; correspondence 
                    courses

  (a)  * * *
  (b) Any eligible spouse or surviving spouse shall be entitled 
to pursue a program of education exclusively by correspondence 
and be paid an educational assistance allowance as provided in 
section 3686 (other than subsection (a)(2)) of this title and 
the period of such spouse's entitlement shall be charged with 
one month for each [$485] $600 which is paid to the spouse as 
an educational assistance allowance for such course.

           *       *       *       *       *       *       *


SUBCHAPTER V--SPECIAL RESTORATIVE TRAINING

           *       *       *       *       *       *       *


        (These amendments shall take effect on October 1, 2002)

Sec. 3542. Special training allowance

  (a) While the eligible person is enrolled in and pursuing a 
full-time course of special restorative training, the parent or 
guardian shall be entitled to receive on behalf of such person 
a special training allowance computed at the basic rate of 
[$485] $720 per month. If the charges for tuition and fees 
applicable to any such course are more than [$152] $225 per 
calendar month, the basic monthly allowance may be increased by 
the amount that such charges exceed [$152] $225 a month, upon 
election by the parent or guardian of the eligible person to 
have such person's period of entitlement reduced by one day for 
each [$16.16] $24 that the special training allowance paid 
exceeds the basic monthly allowance.

           *       *       *       *       *       *       *


   (For fiscal years 2001 and 2002 this section shall be applied by 
                  substituting the following figures)

Sec. 3542. Special training allowance

  (a) While the eligible person is enrolled in and pursuing a 
full-time course of special restorative training, the parent or 
guardian shall be entitled to receive on behalf of such person 
a special training allowance computed at the basic rate of 
[$485] $600 per month. If the charges for tuition and fees 
applicable to any such course are more than [$152] $188 per 
calendar month, the basic monthly allowance may be increased by 
the amount that such charges exceed [$152] $188 a month, upon 
election by the parent or guardian of the eligible person to 
have such person's period of entitlement reduced by one day for 
each [$16.16] $20 that the special training allowance paid 
exceeds the basic monthly allowance.

           *       *       *       *       *       *       *


SUBCHAPTER VI--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *


Sec. 3564. Annual adjustment of amounts of educational assistance

  With respect to any fiscal year, the Secretary shall provide 
a percentage increase (rounded to the nearest dollar) in the 
rates payable under sections 3532, 3534(b), and 3542(a) of this 
title equal to the percentage by which--
          (1) the Consumer Price Index (all items, United 
        States city

        average) for the 12-month period ending on the June 30 
        preced-

        ing the beginning of the fiscal year for which the 
        increase is made, exceeds
          (2) such Consumer Price Index for the 12-month period 
        preceding the 12-month period described in paragraph 
        (1).

           *       *       *       *       *       *       *


CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS

           *       *       *       *       *       *       *


SUBCHAPTER I--STATE APPROVING AGENCIES

           *       *       *       *       *       *       *


Sec. 3680. Payment of educational assistance or subsistence allowances

                  Period for Which Payment May Be Made

  (a)  * * *

           *       *       *       *       *       *       *

Notwithstanding the foregoing, the Secretary may, subject to 
such regulations as the Secretary shall prescribe, continue to 
pay allowances to eligible veterans and eligible persons 
enrolled in courses set forth in clause (1) of this 
subsection--
          (A)  * * *

           *       *       *       *       *       *       *

          [(C) during periods between a semester, term, or 
        quarter where the educational institution certifies the 
        enrollment of the eligible veteran or eligible person 
        on an individual semester, term, or quarter basis if 
        the interval between such periods does not exceed one 
        full calendar month.]
          (C) during periods between school terms where the 
        educational institution certifies the enrollment of the 
        eligible veteran or eligible person on an individual 
        term basis if (i) the period between such terms does 
        not exceed eight weeks, and (ii) both the terms 
        preceding and following the period are not shorter in 
        length than the period.

           *       *       *       *       *       *       *


SUBCHAPTER II--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *


 (The amendments to subsection (b)(2) shall take effect on October 1, 
                                 2002)

Sec. 3687. Apprenticeship or other on-job training

  (a)  * * *

           *       *       *       *       *       *       *

  (b)(1)  * * *
  (2) The monthly training assistance allowance of an eligible 
person pursuing a program described under subsection (a) shall 
be [$353] $524 for the first six months, [$264] $392 for the 
second six months, [$175] $260 for the third six months, and 
[$88] $131 for the fourth and any succeeding six-month periods 
of training.

           *       *       *       *       *       *       *

  (d) With respect to any fiscal year, the Secretary shall 
provide a percentage increase (rounded to the nearest dollar) 
in the rates payable under subsection (b)(2) equal to the 
percentage by which--
          (1) the Consumer Price Index (all items, United 
        States city average) for the 12-month period ending on 
        the June 30 preceding the beginning of the fiscal year 
        for which the increase is made, exceeds
          (2) such Consumer Price Index for the 12-month period 
        preceding the 12-month period described in paragraph 
        (1).

           *       *       *       *       *       *       *


   (For fiscal years 2001 and 2002 this section shall be applied by 
                  substituting the following figures)

Sec. 3687. Apprenticeship or other on-job training

  (a)  * * *

           *       *       *       *       *       *       *

  (b)(1)  * * *
  (2) The monthly training assistance allowance of an eligible 
person pursuing a program described under subsection (a) shall 
be [$353] $437 for the first six months, [$264] $327 for the 
second six months, [$175] $216 for the third six months, and 
[$88] $109 for the fourth and any succeeding six-month periods 
of training.

           *       *       *       *       *       *       *


CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS

           *       *       *       *       *       *       *


SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *


Sec. 3720. Powers of Secretary

  (a)  * * *

           *       *       *       *       *       *       *

  (h)(1)  * * *
  (2) The Secretary may not under this subsection guarantee the 
payment of principal and interest on certificates or other 
securities issued or approved after [December 31, 2002] 
December 31, 2008.

           *       *       *       *       *       *       *


Sec. 3729. Loan fee

  (a)(1)  * * *

           *       *       *       *       *       *       *

  (4)(A)  * * *
  (B) The specified period for purposes of subparagraph (A) is 
the period beginning on October 1, 1993, and ending on 
September 30, [2002] 2008, except that in the case of a loan 
described in subparagraph (D) of paragraph (2), such period 
ends on September 30, [2003] 2009.

           *       *       *       *       *       *       *

  (5)(A)  * * *

           *       *       *       *       *       *       *

  (C) This paragraph applies with respect to a loan closed 
after September 30, 1993, and before [October 1, 2002] October 
1, 2008.

           *       *       *       *       *       *       *


Sec. 3732. Procedure on default

  (a)  * * *

           *       *       *       *       *       *       *

  (c)(1)  * * *

           *       *       *       *       *       *       *

  (11) This subsection shall apply to loans closed before 
[October 1, 2002] October 1, 2008.

           *       *       *       *       *       *       *


PART IV--GENERAL ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *


CHAPTER 51--CLAIMS, EFFECTIVE DATES, AND PAYMENTS

           *       *       *       *       *       *       *


SUBCHAPTER II--EFFECTIVE DATES

           *       *       *       *       *       *       *


Sec. 5113. Effective dates of educational benefits

  (a) Except as provided in [subsection (b) of this section] 
subsections (b) and (c), effective dates relating to awards 
under chapters 30, 31, 32, 34, and 35 of this title or chapter 
106 of title 10 shall, to the extent feasible, correspond to 
effective dates relating to awards of disability compensation.
  (b)(1) When determining the effective date of an award of 
survivors' and dependents' educational assistance under chapter 
35 of this title for an individual described in paragraph (2) 
based on an original claim, the Secretary shall consider the 
individual's application (under section 3513 of this title) as 
having been filed on the effective date from which the 
Secretary, by rating decision, determines that the individual 
is entitled to such educational assistance (such entitlement 
being based on the total service-connected disability evaluated 
as permanent in nature, or the service-connected death, of the 
spouse or parent from whom the individual's eligibility is 
derived) if that date is more than one year before the date 
such rating decision is made.
  (2) An individual referred to in paragraph (1) is a person 
who is eligible for educational assistance under chapter 35 of 
this title by reason of subparagraph (A)(i), (A)(ii), (B), or 
(D) of section 3501(a)(1) of this title who--
          (A) submits to the Secretary an original application 
        under such section 3513 for such educational assistance 
        within one year of the effective date of the rating 
        decision referred to in paragraph (1);
          (B) claims such educational assistance for an 
        approved program of education for months preceding the 
        one-year period ending on the date on which the 
        individual's application under such section was 
        received by the Secretary; and
          (C) would have been entitled to such educational 
        assistance for such course pursuit for such months, 
        without regard to this subsection, if the individual 
        had submitted such an application on the effective date 
        from which the Secretary determined the individual was 
        eligible for such educational assistance.
  [(b)] (c) The effective date of an adjustment of benefits 
under any chapter referred to in subsection (a) of this 
section, if made on the basis of a certification made by the 
veteran or person and accepted by the Secretary under section 
3680(g) of this title, shall be the date of the change.

           *       *       *       *       *       *       *


CHAPTER 53--SPECIAL PROVISIONS RELATING TO BENEFITS

           *       *       *       *       *       *       *


Sec. 5317. Use of income information from other agencies: notice and 
                    verification

  (a)  * * *

           *       *       *       *       *       *       *

  (g) The authority of the Secretary to obtain information from 
the Secretary of the Treasury or the Secretary of Health and 
Human Services under section 6103(l)(7)(D)(viii) of the 
Internal Revenue Code of 1986 expires on [September 30, 2002] 
September 30, 2008.

           *       *       *       *       *       *       *


CHAPTER 55--MINORS, INCOMPETENTS, AND OTHER WARDS

           *       *       *       *       *       *       *


Sec. 5503. Hospitalized veterans and estates of incompetent 
                    institutionalized veterans

  (a)  * * *

           *       *       *       *       *       *       *

  (f)(1)  * * *

           *       *       *       *       *       *       *

  (7) This subsection expires on [September 30, 2002] September 
30, 2008.

           *       *       *       *       *       *       *


PART V--BOARDS, ADMINISTRATIONS, AND SERVICES

           *       *       *       *       *       *       *


CHAPTER 73--VETERANS HEALTH ADMINISTRATION--ORGANIZATION AND FUNCTIONS

           *       *       *       *       *       *       *


SUBCHAPTER II--GENERAL AUTHORITY AND ADMINISTRATION

           *       *       *       *       *       *       *


Sec. 7312. Special medical advisory group

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Not later than February 1 of each year, the special 
medical advisory group shall submit to the Secretary and the 
Congress a report on the activities of the advisory group 
during the preceding fiscal year. No report shall be required 
under this subsection after December 31, 2004.

           *       *       *       *       *       *       *


PART VI--ACQUISITION AND DISPOSITION OF PROPERTY

           *       *       *       *       *       *       *


   CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY 
    FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL 
PROPERTY

           *       *       *       *       *       *       *


SUBCHAPTER I--ACQUISITION AND OPERATION OF MEDICAL FACILITIES

           *       *       *       *       *       *       *


Sec. 8111A. Furnishing of health-care services to members of the Armed 
                    Forces during a war or national emergency

  (a)  * * *

           *       *       *       *       *       *       *

  [(f) Within thirty days after a declaration of a period of 
war or national emergency described in subsection (a) of this 
section (or as soon after the end of such thirty-day period as 
is reasonably practicable), the Secretary shall submit to the 
Committees on Veterans' Affairs of the Senate and House of 
Representatives a report on the Secretary's allocation of 
facilities and personnel in order to provide priority hospital 
care, nursing home care, and medical services under this 
section to members of the Armed Forces. Thereafter, with 
respect to any fiscal year in which the authority in subsection 
(b) of this section to enter into contracts with private 
facilities has been used, the Secretary shall report within 
ninety days after the end of such fiscal year to those 
committees regarding the extent of, and the circumstances under 
which, such authority was used.]

           *       *       *       *       *       *       *


   CHAPTER 82--ASSISTANCE IN ESTABLISHING NEW STATE MEDICAL SCHOOLS; 
  GRANTS TO AFFILIATED MEDICAL SCHOOLS; ASSISTANCE TO HEALTH MANPOWER 
TRAINING INSTITUTIONS

           *       *       *       *       *       *       *


Sec. 8201. Coordination with public health programs; administration

  (a)  * * *

           *       *       *       *       *       *       *

  [(h) Not later than ninety days after the end of each fiscal 
year, the Secretary shall submit to the Congress a report on 
activities carried out under this chapter, including (1) an 
appraisal of the effectiveness of the programs authorized 
herein in carrying out their statutory purposes and the degree 
of cooperation from other sources, financial and otherwise, (2) 
an appraisal of the contributions of such programs in improving 
the quantity and quality of physicians and other health care 
personnel furnishing hospital care and medical services to 
veterans under this title, (3) a list of the approved but 
unfunded projects under this chapter and the funds needed for 
each such project, and (4) recommendations for the improvement 
or more effective administration of such programs, including 
any necessary legislation.]

           *       *       *       *       *       *       *


                                

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