[Senate Report 106-122]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 230
106th Congress                                                   Report
                                 SENATE
 1st Session                                                    106-122

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



 
                     VETERANS BENEFITS ACT OF 1999

                                _______
                                

                 July 27, 1999.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 1076]

    The Committee on Veterans' Affairs, to which was referred a 
bill (S. 1076) to provide a cost-of-living adjustment in rates 
of compensation paid to veterans with service-connected 
disabilities, to enhance programs providing health care, 
education, and other benefits for veterans, to authorize major 
medical facility projects, to reform eligibility for burial in 
Arlington National Cemetery, and for other purposes, having 
considered the same, reports favorably thereon and recommends 
that the bill, as amended, do pass.

                             COMMITTEE BILL

    The amendments are as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Veterans Benefits 
Act of 1999''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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


                          TITLE I--MEDICAL CARE


                       Subtitle A--Long-Term Care

Sec. 101. Adult day health care.
Sec. 102. In-home respite care services.

        Subtitle B--Management of Medical Facilities and Property

Sec. 111. Enhanced-use lease authority.
Sec. 112. Designation of hospital bed replacement building at Department 
          of Veterans Affairs medical center in Reno, Nevada, after Jack 
          Streeter.

                      Subtitle C--Homeless Veterans

Sec. 121. Extension of program of housing assistance for homeless 
          veterans.
Sec. 122. Homeless veterans comprehensive service programs.
Sec. 123. Authorizations of appropriations for homeless veterans' 
          reintegration projects.
Sec. 124. Report on implementation of General Accounting Office 
          recommendations regarding performance measures.

                Subtitle D--Other Health Care Provisions

Sec. 131. Emergency health care in non-Department of Veterans Affairs 
          facilities for enrolled veterans.
Sec. 132. Improvement of specialized mental health services for 
          veterans.
Sec. 133. Treatment and services for drug or alcohol dependency.
Sec. 134. Allocation to Department of Veterans Affairs health care 
          facilities of amounts in Medical Care Collections Fund.
Sec. 135. Extension of certain Persian Gulf War authorities.
Sec. 136. Report on coordination of procurement of pharmaceuticals and 
          medical supplies by the Department of Veterans Affairs and the 
          Department of Defense.
Sec. 137. Reimbursement of medical expenses of veterans located in 
          Alaska.
Sec. 138. Repeal of four-year limitation on terms of Under Secretary for 
          Health and Under Secretary for Benefits.

 Subtitle E--Major Medical Facility Projects Construction Authorization

Sec. 141. Authorization of major medical facility projects.

                       TITLE II--BENEFITS MATTERS

Sec. 201. Payment rate of certain burial benefits for certain Filipino 
          veterans.
Sec. 202. Extension of authority to maintain a regional office in the 
          Republic of the Philippines.
Sec. 203. Extension of Advisory Committee on Minority Veterans.
Sec. 204. Dependency and indemnity compensation for surviving spouses of 
          former prisoners of war.
Sec. 205. Repeal of limitation on payments of benefits to incompetent 
          institutionalized veterans.
Sec. 206. Clarification of veterans employment opportunities.

                       TITLE III--MEMORIAL AFFAIRS

                 Subtitle A--Arlington National Cemetery

Sec. 301. Short title.
Sec. 302. Persons eligible for burial in Arlington National Cemetery.
Sec. 303. Persons eligible for placement in the columbarium in Arlington 
          National Cemetery.

                    Subtitle B--World War II Memorial

Sec. 311. Short title.
Sec. 312. Fund raising by American Battle Monuments Commission for World 
          War II Memorial.
Sec. 313. General authority of American Battle Monuments Commission to 
          solicit and receive contributions.
Sec. 314. Intellectual property and related items.

      TITLE IV--UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

Sec. 401. Temporary service of certain judges of United States Court of 
          Appeals for Veterans Claims upon expiration of their terms or 
          retirement.
Sec. 402. Modified terms for certain judges of United States Court of 
          Appeals for Veterans Claims.
Sec. 403. Temporary authority for voluntary separation incentives for 
          certain judges on United States Court of Appeals for Veterans 
          Claims.
Sec. 404. Definition.

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

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

                         TITLE I--MEDICAL CARE

                       Subtitle A--Long-Term Care

SEC. 101. ADULT DAY HEALTH CARE.

    Section 1720(f)(1)(A)(i) is amended by striking ``subsections (a) 
through (d) of this section'' and inserting ``subsections (b) through 
(d) of this section''.

SEC. 102. IN-HOME RESPITE CARE SERVICES.

    Section 1720B(b) is amended--
          (1) in the matter preceding paragraph (1), by striking ``or 
        nursing home care'' and inserting ``, nursing home care, or 
        home-based care''; and
          (2) in paragraph (2), by inserting ``or in the home of a 
        veteran'' after ``in a Department facility''.

       Subtitle B--Management of Medical Facilities and Property

SEC. 111. ENHANCED-USE LEASE AUTHORITY.

    (a) Maximum Term of Leases.--Section 8162(b)(2) is amended by 
striking ``may not exceed''--and all that follows through the end and 
inserting ``may not exceed 55 years.''.
    (b) Availability of Funds for Certain Activities Relating to 
Leases.--Section 8162(b)(4) is amended--
          (1) by inserting ``(A)'' after ``(4)'';
          (2) in subparagraph (A), as so designated--
                  (A) in the first sentence, by striking ``only''; and
                  (B) by striking the second sentence; and
          (3) by adding at the end the following new subparagraph:
    ``(B) Any payment by the Secretary in contribution to capital 
activities on property that has been leased under this subchapter may 
be made from amounts appropriated to the Department for construction, 
minor projects.''.
    (c) Extension of Authority.--Section 8169 is amended by striking 
``December 31, 2001'' and inserting ``December 31, 2011''.
    (d) Training and Outreach Regarding Authority.--The Secretary of 
Veterans Affairs shall take appropriate actions to provide training and 
outreach to personnel at Department of Veterans Affairs medical centers 
regarding the enhanced-use lease authority under subchapter V of 
chapter 81 of title 38, United States Code. The training and outreach 
shall address methods of approaching potential lessees in the medical 
or commercial sectors regarding the possibility of entering into leases 
under that authority and other appropriate matters.
    (e) Independent Analysis of Opportunities for Use of Authority.--
(1) The Secretary shall take appropriate actions to secure from an 
appropriate entity independent of the Department of Veterans Affairs an 
analysis of opportunities for the use of the enhanced-use lease 
authority under subchapter V of chapter 81 of title 38, United States 
Code.
    (2) The analysis under paragraph (1) shall include--
          (A) a survey of the facilities of the Department for purposes 
        of identifying Department property that presents an opportunity 
        for lease under the enhanced-use lease authority;
          (B) an assessment of the feasibility of entering into 
        enhanced-use leases under that authority in the case of any 
        property identified under subparagraph (A) as presenting an 
        opportunity for such lease; and
          (C) an assessment of the resources required at the Department 
        facilities concerned, and at the Department Central Office, in 
        order to facilitate the entering into of enhanced-used leases 
        in the case of property so identified.
    (3) If as a result of the survey under paragraph (2)(A) the entity 
determines that a particular Department property presents no 
opportunities for lease under the enhanced-use lease authority, the 
analysis shall include the entity's explanation of that determination.
    (4) If as a result of the survey the entity determines that certain 
Department property presents an opportunity for lease under the 
enhanced-use lease authority, the analysis shall include a single 
integrated business plan, developed by the entity, that addresses the 
strategy and resources necessary to implement the plan for all property 
determined to present an opportunity for such lease.
    (f) Authority for Enhanced-Use Lease of Property Under Business 
Plan.--(1) The Secretary may enter into an enhanced-use lease of any 
property identified as presenting an opportunity for such lease under 
the analysis under subsection (e) if such lease is consistent with the 
business plan under paragraph (4) of that subsection.
    (2) The provisions of subchapter V of chapter 81 of title 38, 
United States Code, shall apply with respect to any lease under 
paragraph (1).

SEC. 112. DESIGNATION OF HOSPITAL BED REPLACEMENT BUILDING AT 
                    DEPARTMENT OF VETERANS AFFAIRS MEDICAL CENTER IN 
                    RENO, NEVADA, AFTER JACK STREETER.

    The hospital bed replacement building under construction at the 
Ioannis A. Lougaris Department of Veterans Affairs Medical Center in 
Reno, Nevada, is hereby designated as the ``Jack Streeter Building''. 
Any reference to that building in any law, regulation, map, document, 
record, or other paper of the United States shall be considered to be a 
reference to the Jack Streeter Building.

                     Subtitle C--Homeless Veterans

SEC. 121. EXTENSION OF PROGRAM OF HOUSING ASSISTANCE FOR HOMELESS 
                    VETERANS.

    Section 3735(c) is amended by striking ``December 31, 1999'' and 
inserting ``December 31, 2001''.

SEC. 122. HOMELESS VETERANS COMPREHENSIVE SERVICE PROGRAMS.

    (a) Purposes of Grants.--Paragraph (1) of section 3(a) of the 
Homeless Veterans Comprehensive Service Programs Act of 1992 (38 U.S.C. 
7721 note) is amended by inserting ``, and expanding existing programs 
for furnishing,'' after ``new programs to furnish''.
    (b) Extension of Authority to Make Grants.--Paragraph (2) of that 
section is amended by striking ``September 30, 1999'' and inserting 
``September 30, 2001''.
    (c) Authorization of Appropriations.--Section 12 of that Act (38 
U.S.C. 7721 note) is amended in the first sentence by inserting ``and 
$50,000,000 for each of fiscal years 2000 and 2001'' after ``for fiscal 
years 1993 through 1997''.

SEC. 123. AUTHORIZATIONS OF APPROPRIATIONS FOR HOMELESS VETERANS' 
                    REINTEGRATION PROJECTS.

    Section 738(e)(1) of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11448(e)(1) is amended by adding at the end the 
following:
          (H) $10,000,000 for fiscal year 2000.
          (I) $10,000,000 for fiscal year 2001.''.

SEC. 124. REPORT ON IMPLEMENTATION OF GENERAL ACCOUNTING OFFICE 
                    RECOMMENDATIONS REGARDING PERFORMANCE MEASURES.

    (a) Report.--Not later than three months after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall submit 
to the Committees on Veterans' Affairs of the Senate and the House of 
Representatives a report containing a detailed plan for the evaluation 
by the Department of Veterans Affairs of the effectiveness of programs 
to assist homeless veterans.
    (b) Outcome Measures.--The plan shall include outcome measures 
which determine whether veterans are housed and employed within six 
months after housing and employment are secured for veterans under such 
programs.

                Subtitle D--Other Health Care Provisions

SEC. 131. EMERGENCY HEALTH CARE IN NON-DEPARTMENT OF VETERANS AFFAIRS 
                    FACILITIES FOR ENROLLED VETERANS.

    (a) Definitions.--Section 1701 is amended--
          (1) in paragraph (6)--
                  (A) by striking ``and'' at the end of subparagraph 
                (A);
                  (B) by striking the period at the end of subparagraph 
                (B) and inserting ``; and'; and
                  (C) by inserting after subparagraph (B) the following 
                new subparagraph:
          ``(C) emergency care, or reimbursement for such care, as 
        described in sections 1703(a)(3) and 1728(a)(2)(E) of this 
        title.''; and
          (2) by adding at the end the following new paragraph:
          ``(10) The term `emergency medical condition' means a medical 
        condition manifesting itself by acute symptoms of sufficient 
        severity (including severe pain) such that a prudent layperson, 
        who possesses an average knowledge of health and medicine, 
        could reasonably expect the absence of immediate medical 
        attention to result in--
                  ``(A) placing the health of the individual (or, with 
                respect to a pregnant woman, the health of the woman or 
                her unborn child) in serious jeopardy;
                  ``(B) serious impairment to bodily functions; or
                  ``(C) serious dysfunction of any bodily organ or 
                part.''.
    (b) Contract Care.--Section 1703(a)(3) is amended by striking 
``medical emergencies'' and all that follows through ``health of a 
veteran'' and inserting ``an emergency medical condition of a veteran 
who is enrolled under section 1705 of this title or who is''.
    (c) Reimbursement of Expenses for Emergency Care.--Section 
1728(a)(2) is amended--
          (1) by striking ``or'' before ``(D)''; and
          (2) by inserting before the semicolon at the end the 
        following: ``, or (E) for any emergency medical condition of a 
        veteran enrolled under section 1705 of this title''.
    (d) Payment Priority.--Section 1705 is amended by adding at the end 
the following new subsection:
    ``(d) The Secretary shall require in a contract under section 
1703(a)(3) of this title, and as a condition of payment under section 
1728(a)(2) of this title, that payment by the Secretary for treatment 
under such contract, or under such section, of a veteran enrolled under 
this section shall be made only after any payment that may be made with 
respect to such treatment under part A or part B of the Medicare 
program and after any payment that may be made with respect to such 
treatment by a third-party insurance provider.''.
    (e) Effective Date.--The amendments made by this section shall 
apply with respect to care or services provided on or after the date of 
the enactment of this Act.

SEC. 132. IMPROVEMENT OF SPECIALIZED MENTAL HEALTH SERVICES FOR 
                    VETERANS.

    (a) In General.--(1) Subchapter II of chapter 17 is amended by 
inserting after section 1712B the following new section:

``Sec. 1712C. Specialized mental health services

    ``(a) The Secretary shall carry out programs for purposes of 
enhancing the provision of specialized mental health services to 
veterans.
    ``(b) The programs carried out by the Secretary under subsection 
(a) shall include the following:
          ``(1) Programs relating to the treatment of Post Traumatic 
        Stress Disorder (PTSD), including programs for--
                  ``(A) the establishment and operation of additional 
                outpatient and residential treatment facilities for 
                Post Traumatic Stress Disorder in areas that are 
                underserved by existing programs relating to Post 
                Traumatic Stress Disorder, as determined by qualified 
                mental health personnel of the Department who oversee 
                such programs;
                  ``(B) the provision of services in response to the 
                specific needs of veterans with Post Traumatic Stress 
                Disorder and related disorders, including short-term or 
                long-term care services that combine residential 
                treatment of Post Traumatic Stress Disorder;
                  ``(C) the provision of Post Traumatic Stress Disorder 
                or dedicated case management services on an outpatient 
                basis; and
                  ``(D) the enhancement of staffing of existing 
                programs relating to Post Traumatic Stress Disorder 
                which have exceeded the projected workloads for such 
                programs.
          ``(2) Programs relating to substance use disorders, including 
        programs for--
                  ``(A) the establishment and operation of additional 
                Department-based or community-based residential 
                treatment facilities;
                  ``(B) the expansion of the provision of opioid 
                treatment services, including the establishment and 
                operation of additional programs for the provision of 
                opioid treatment services; and
                  ``(C) the reestablishment or enhancement of substance 
                use disorder services at facilities at which such 
                services have been eliminated or curtailed, with an 
                emphasis on the reestablishment or enhancement of 
                services at facilities where demand for such services 
                is high or which serve large geographic areas.
    ``(c)(1) The Secretary shall provide for the allocation of funds 
for the programs carried out under this section in a centralized 
manner.
    (2) The allocation of funds for such programs shall--
          ``(A) be based upon an assessment of the need for funds 
        conducted by qualified mental health personnel of the 
        Department who oversee such programs; and
          ``(B) emphasize, to the maximum extent practicable, the 
        availability of funds for the programs described in paragraphs 
        (1) and (2) of subsection (b).''.
    (2) The table of sections at the beginning of chapter 17 is amended 
by inserting after the item relating to section 1712B the following new 
item:

``1712C. Specialized mental health services.''.

    (b) Report.--(1) Not later than March 1 of each of 2000, 2001, and 
2002, the Secretary of Veterans Affairs shall submit to Congress a 
report on the programs carried out by the Secretary under section 1712C 
of title 38, United States Code (as added by subsection (a)).
    (2) The report shall, for the period beginning on the date of the 
enactment of this Act and ending on the date of the report--
          (A) describe the programs carried out under such section 
        1712C;
          (B) set forth the number of veterans provided services under 
        such programs; and
          (C) set forth the amounts expended for purposes of carrying 
        out such programs.

SEC. 133. TREATMENT AND SERVICES FOR DRUG OR ALCOHOL DEPENDENCY.

    Section 1720A(c) is amended--
          (1) in the first sentence of paragraph (1)--
                  (A) by striking ``may not be transferred'' and 
                inserting ``may be transferred''; and
                  (B) by striking ``unless such transfer is during the 
                last thirty days of such member's enlistment or tour of 
                duty''; and
          (2) in the first sentence of paragraph (2), by striking 
        ``during the last thirty days of such person's enlistment 
        period or tour of duty''.

SEC. 134. ALLOCATION TO DEPARTMENT OF VETERANS AFFAIRS HEALTH CARE 
                    FACILITIES OF AMOUNTS IN MEDICAL CARE COLLECTIONS 
                    FUND.

    Section 1729A(d) is amended--
          (1) by striking ``(1)'';
          (2) by striking ``each designated health care region'' and 
        inserting ``each Department health care facility'';
          (3) by striking ``each region'' and inserting ``each 
        facility'';
          (4) by striking ``such region'' both places it appears and 
        inserting ``such facility''; and
          (5) by striking paragraph (2).

SEC. 135. EXTENSION OF CERTAIN PERSIAN GULF WAR AUTHORITIES.

    (a) Three-Year Extension of Newsletter on Medical Care.--Section 
105(b)(2) of the Persian Gulf War Veterans' Benefits Act (title I of 
Public Law 103-446; 108 Stat. 4659; 38 U.S.C. 1117 note) is amended by 
striking ``December 31, 1999'' and inserting ``December 31, 2002''.
    (b) Three-Year Extension of Program for Evaluation of Health of 
Spouses and Children.--Section 107(b) of Persian Gulf War Veterans' 
Benefits Act (title I of Public Law 103-446; 38 U.S.C.1117 note) is 
amended by striking ``December 31, 1999'' and inserting ``December 31, 
2002''.

SEC. 136. REPORT ON COORDINATION OF PROCUREMENT OF PHARMACEUTICALS AND 
                    MEDICAL SUPPLIES BY THE DEPARTMENT OF VETERANS 
                    AFFAIRS AND THE DEPARTMENT OF DEFENSE.

    (a) Requirement.--Not later than March 31, 2000, the Secretary of 
Veterans Affairs and the Secretary of Defense shall jointly submit to 
the Committees on Veterans' Affairs and Armed Services of the Senate 
and the Committees on Veterans' Affairs and Armed Services of the House 
of Representatives a report on the cooperation between the Department 
of Veterans Affairs and the Department of Defense in the procurement of 
pharmaceuticals and medical supplies.
    (b) Report Elements.--The report under subsection (a) shall include 
the following:
          (1) A description of the current cooperation between the 
        Department of Veterans Affairs and the Department of Defense in 
        the procurement of pharmaceuticals and medical supplies.
          (2) An assessment of the means by which cooperation between 
        the departments in such procurement could be enhanced or 
        improved.
          (3) A description of any existing memoranda of agreement 
        between the Department of Veterans Affairs and the Department 
        of Defense that provide for the cooperation referred to in 
        subsection (a).
          (4) A description of the effects, if any, such agreements 
        will have on current staffing levels at the Defense Supply 
        Center in Philadelphia, Pennsylvania, and the Department of 
        Veterans Affairs National Acquisition Center in Hines, 
        Illinois.
          (5) A description of the effects, if any, of such cooperation 
        on military readiness.
          (6) A comprehensive assessment of cost savings realized and 
        projected over the five fiscal year period beginning in fiscal 
        year 1999 for the Department of Veterans Affairs and the 
        Department of Defense as a result of such cooperation, and the 
        overall savings to the Treasury of the United States as a 
        result of such cooperation.
          (7) A list of the types of medical supplies and 
        pharmaceuticals for which cooperative agreements would not be 
        appropriate and the reason or reasons therefor.
          (8) An assessment of the extent to which cooperative 
        agreements could be expanded to include medical equipment, 
        major systems, and durable goods used in the delivery of health 
        care by the Department of Veterans Affairs and the Department 
        of Defense.
          (9) A description of the effects such agreements might have 
        on distribution of items purchased cooperatively by the 
        Department of Veterans Affairs and the Department of Defense, 
        particularly outside the continental United States.
          (10) An assessment of the potential to establish common 
        pharmaceutical formularies between the Department of Veterans 
        Affairs and the Department of Defense.
          (11) An explanation of the current Uniform Product Number 
        (UPN) requirements of each Department and of any planned 
        standardization of such requirements between the Departments 
        for medical equipment and durable goods manufacturers.

SEC. 137. REIMBURSEMENT OF MEDICAL EXPENSES OF VETERANS LOCATED IN 
                    ALASKA.

    (a) Preservation of Current Reimbursement Rates.--Notwithstanding 
any other provision of law, the Secretary of Veterans Affairs shall, 
for purposes of reimbursing veterans in Alaska for medical expenses 
under section 1728 of title 38, United States Code, during the one-year 
period beginning on the date of the enactment of this Act, use the fee-
for-service payment schedule in effect for such purposes on July 31, 
1999, rather than the Participating Physician Fee Schedule under the 
Medicare program.
    (b) Report.--(1) Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Veterans Affairs and the 
Secretary of Health and Human Services shall jointly submit to the 
Committees on Veterans' Affairs of the Senate and the House of 
Representatives a report and recommendation on the use of the 
Participating Physician Fee Schedule under the Medicare program as a 
means of calculating reimbursement rates for medical expenses of 
veterans located in Alaska under section 1728 of title 38, United 
States Code.
    (2) The report shall--
          (A) assess the differences between health care costs in 
        Alaska and health care costs in the continental United States;
          (B) describe any differences between the costs of providing 
        health care in Alaska and the reimbursement rates for the 
        provision of health care under the Participating Physician Fee 
        Schedule; and
          (C) assess the effects on health care for veterans in Alaska 
        of implementing the Participating Physician Fee Schedule as a 
        means of calculating reimbursement rates for medical expenses 
        of veterans located in Alaska under section 1728 of title 38, 
        United States Code.

SEC. 138. REPEAL OF FOUR-YEAR LIMITATION ON TERMS OF UNDER SECRETARY 
                    FOR HEALTH AND UNDER SECRETARY FOR BENEFITS.

    (a) Under Secretary for Health.--Section 305 is amended--
          (1) by striking subsection (c); and
          (2) by redesignating subsection (d) as subsection (c).
    (b) Under Secretary for Benefits.--Section 306 is amended--
          (1) by striking subsection (c); and
          (2) by redesignating subsection (d) as subsection (c).
    (c) Applicability.--The amendments made by subsections (a) and (b) 
shall take effect on the date of the enactment of this Act and shall 
apply with respect to individuals appointed as Under Secretary for 
Health and Under Secretary for Benefits, respectively, on or after that 
date.

 Subtitle E--Major Medical Facility Projects Construction Authorization

SEC. 141. AUTHORIZATION OF MAJOR MEDICAL FACILITY PROJECTS.

    (a) In General.--The Secretary of Veterans Affairs may carry out 
the following major medical facility projects, with each project to be 
carried out in the amount specified for that project:
          (1) Construction of a long term care facility at the 
        Department of Veterans Affairs Medical Center, Lebanon, 
        Pennsylvania, in an amount not to exceed $14,500,000.
          (2) Renovations and environmental improvements at the 
        Department of Veterans Affairs Medical Center, Fargo, North 
        Dakota, in an amount not to exceed $12,000,000.
          (3) Construction of a surgical suite and post-anesthesia care 
        unit at the Department of Veterans Affairs Medical Center, 
        Kansas City, Missouri, in an amount not to exceed $13,000,000.
    (b) Authorization of Appropriations.--
          (1) In general.--There is authorized to be appropriated to 
        the Secretary of Veterans Affairs for fiscal year 2000 for the 
        Construction, Major Projects, Account $213,100,000 for the 
        projects authorized in subsection (a) and for the continuation 
        of projects authorized in section 701(a) of the Veterans 
        Programs Enhancement Act of 1998 (Public Law 105-368; 112 Stat. 
        3348).
          (2) Limitation on fiscal year 2000 projects.--The projects 
        authorized in subsection (a) may only be carried out using--
                  (A) funds appropriated for fiscal year 2000 pursuant 
                to the authorizations of appropriations in subsection 
                (a);
                  (B) funds appropriated for Construction, Major 
                Projects, for a fiscal year before fiscal year 2000 
                that remain available for obligation; and
                  (C) funds appropriated for Construction, Major 
                Projects, for fiscal year 2000 for a category of 
                activity not specific to a project.
    (c) Availability of Funds for Fiscal Year 1999 Projects.--Section 
703(b)(1) of the Veterans Programs Enhancement Act of 1998 (112 Stat. 
3349) is amended--
          (1) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D), respectively; and
          (2) by inserting after subparagraph (A) the following new 
        subparagraph (B):
          ``(B) funds appropriated for fiscal year 2000 pursuant to the 
        authorization of appropriations in section 341(b)(1) of the 
        Veterans Benefits Act of 1999;''.

                       TITLE II--BENEFITS MATTERS

SEC. 201. PAYMENT RATE OF CERTAIN BURIAL BENEFITS FOR CERTAIN FILIPINO 
                    VETERANS.

    (a) Payment Rate.--Section 107 is amended--
          (1) in subsection (a), by striking ``Payments'' and inserting 
        ``Subject to subsection (c), payments''; and
          (2) by adding at the end the following:
    ``(c)(1) In the case of an individual described in paragraph (2), 
payments under section 2302 or 2303 of this title by reason of 
subsection (a)(3) shall be made at the rate of $1 for each dollar 
authorized.
    ``(2) Paragraph (1) applies to any individual whose service is 
described in subsection (a) and who dies after the date of the 
enactment of the Veterans Benefits Act of 1999 if the individual, on 
the individual's date of death--
          ``(A) is a citizen of the United States;
          ``(B) is residing in the United States; and
          ``(C) either--
                  ``(i) is receiving compensation under chapter 11 of 
                this title; or
                  ``(ii) if such service had been deemed to be active 
                military, naval, or air service, would have been paid 
                pension under section 1521 of this title without denial 
                or discontinuance by reason of section 1522 of this 
                title.''.
    (b) Applicability.--No benefits shall accrue to any person for any 
period before the date of the enactment of this Act by reason of the 
amendments made by subsection (a).

SEC. 202. EXTENSION OF AUTHORITY TO MAINTAIN A REGIONAL OFFICE IN THE 
                    REPUBLIC OF THE PHILIPPINES.

    Section 315(b) is amended by striking ``December 31, 1999'' and 
inserting ``December 31, 2004''.

SEC. 203. EXTENSION OF ADVISORY COMMITTEE ON MINORITY VETERANS.

    Section 544(e) is amended by striking ``December 31, 1999'' and 
inserting ``December 31, 2004''.

SEC. 204. DEPENDENCY AND INDEMNITY COMPENSATION FOR SURVIVING SPOUSES 
                    OF FORMER PRISONERS OF WAR.

    (a) Eligibility.--Section 1318(b) is amended--
          (1) by striking ``that either--'' in the matter preceding 
        paragraph (1) and inserting ``rated totally disabling if--''; 
        and
          (2) by adding at the end the following new paragraph:
          ``(3) the veteran was a former prisoner of war who died after 
        September 30, 1999, and whose disability was continuously rated 
        totally disabling for a period of one year immediately 
        preceding death.''.
    (b) Conforming Amendments.--Such section is further amended--
          (1) in paragraph (1)--
                  (A) by inserting ``the disability'' after ``(1)''; 
                and
                  (B) by striking ``or'' after ``death;''; and
          (2) in paragraph (2)--
                  (A) by striking ``if so rated for a lesser period, 
                was so rated continuously'' and inserting ``the 
                disability was continuously rated totally disabling''; 
                and
                  (B) by striking the period at the end and inserting 
                ``; or''.

SEC. 205. REPEAL OF LIMITATION ON PAYMENTS OF BENEFITS TO INCOMPETENT 
                    INSTITUTIONALIZED VETERANS.

    Section 5503 is amended--
          (1) by striking subsections (b) and (c); and
          (2) by redesignating subsections (d), (e), and (f) as 
        subsections (b), (c), and (d), respectively.

SEC. 206. CLARIFICATION OF VETERANS EMPLOYMENT OPPORTUNITIES.

    (a) Clarification.--Section 3304(f) of title 5, United States Code, 
is amended--
          (1) by striking paragraph (4);
          (2) by redesignating paragraphs (2) and (3) as paragraphs (3) 
        and (4), respectively; and
          (3) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) If selected, a preference eligible or veteran described in 
paragraph (1) shall acquire competitive status and shall receive a 
career or career-conditional appointment, as appropriate.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if included in the amendment made to section 3304 of 
title 5, United States Code, by section 2 of the Veterans Employment 
Opportunities Act of 1998 (Public Law 105-339; 112 Stat. 3182), to 
which such amendments relate.

                      TITLE III--MEMORIAL AFFAIRS

                Subtitle A--Arlington National Cemetery

SEC. 301. SHORT TITLE.

    This subtitle may be cited as the ``Arlington National Cemetery 
Burial and Inurnment Eligibility Act of 1999''.

SEC. 302. PERSONS ELIGIBLE FOR BURIAL IN ARLINGTON NATIONAL CEMETERY.

    (a) In General.--(1) Chapter 24 is amended by adding at the end the 
following new section:

``Sec. 2412. Arlington National Cemetery: persons eligible for burial

    ``(a) Primary Eligibility.--The remains of the following 
individuals may be buried in Arlington National Cemetery:
          ``(1) Any member of the Armed Forces who dies while on active 
        duty.
          ``(2) Any retired member of the Armed Forces and any person 
        who served on active duty and at the time of death was entitled 
        (or but for age would have been entitled) to retired pay under 
        chapter 1223 of title 10.
          ``(3) Any former member of the Armed Forces separated for 
        physical disability before October 1, 1949, who--
                  ``(A) served on active duty; and
                  ``(B) would have been eligible for retirement under 
                the provisions of section 1201 of title 10 (relating to 
                retirement for disability) had that section been in 
                effect on the date of separation of the member.
          ''(4) Any former member of the Armed Forces whose last active 
        duty military service terminated honorably and who has been 
        awarded one of the following decorations:
                  ``(A) Medal of Honor.
         ``(B) Distinguished Service Cross, Air Force Cross, or Navy 
        Cross.
                  ``(C) Distinguished Service Medal.
                  ``(D) Silver Star.
                  ``(E) Purple Heart.
          ``(5) Any former prisoner of war who dies on or after 
        November 30, 1993.
          ``(6) The President or any former President.
        ``(7) Any former member of the Armed Forces whose last 
        discharge or separation from active duty was under honorable 
        conditions and who is or was one of the following:
                  ``(A) Vice President.
                  ``(B) Member of Congress.
                  ``(C) Chief Justice or Associate Justice of the 
                Supreme Court.
                  ``(D) The head of an Executive department (as such 
                departments are listed in section 101 of title 5).
                  ``(E) An individual who served in the foreign or 
                national security services, if such individual died as 
                a result of a hostile action outside the   United 
                States in the course of such service.
          ``(8) Any individual whose eligibility is authorized in 
        accordance with subsection (b).
    ``(b) Additional Authorizations of Burial.--''(1) In the case of a 
former member of the Armed Forces not otherwise covered by subsection 
(a) whose last discharge or separation from active duty was under 
honorable conditions, if the Secretary of Defense makes a determination 
referred to in paragraph (3) with respect to such member, the Secretary 
of Defense may authorize the burial of the remains of such former 
member in Arlington National Cemetery under subsection (a)(8).
    ``(2) In the case of any individual not otherwise covered by 
subsection (a) or paragraph (1), if the President makes a determination 
referred to in paragraph (3) with respect to such individual, the 
President may authorize the burial of the remains of such individual in 
Arlington National Cemetery under subsection (a)(8).
    ``(3) A determination referred to in paragraph (1) or (2) is a 
determination that the acts, service, or other contributions to the 
Nation of the former member or individual concerned are of equal or 
similar merit to the acts, service, or other contributions to the 
Nation of any of the persons listed in subsection (a).
    ``(4)(A) In the case of an authorization for burial under this 
subsection, the President or the Secretary of Defense, as the case may 
be, shall submit to the Committees on Veterans' Affairs of the Senate 
and the House of Representatives a report on the authorization not 
later than 72 hours after the authorization.
    ``(B) Each report under subparagraph (A) shall--
          ``(i) identify the individual authorized for burial; and
          ``(ii) provide a justification for the authorization for 
        burial.
    ``(5)(A) In the case of an authorization for burial under this 
subsection, the President or the Secretary of Defense, as the case may 
be, shall publish in the Federal Register a notice of the authorization 
as soon as practicable after the authorization.
    ``(B) Each notice under subparagraph (A) shall--
          ``(i) identify the individual authorized for burial; and
          ``(ii) provide a justification for the authorization for 
        burial.
    ``(c) Eligibility of Family Members.--''The remains of the 
following individuals may be buried in Arlington National Cemetery:
          ``(1)(A) Except as provided in subparagraph (B), the spouse, 
        surviving spouse, minor child, and, at the discretion of the 
        Superintendent, unmarried adult child of a person listed in 
        subsection (a), but only if buried in the same gravesite as 
        that person.
          ``(B) In a case under subparagraph (A) in which the same 
        gravesite may not be used due to insufficient space, a person 
        otherwise eligible under that subparagraph may be interred in a 
        gravesite adjoining the gravesite of the person listed in 
        subsection (a) if space in such adjoining gravesite had been 
        reserved for the burial of such person otherwise eligible under 
        that subparagraph before January 1962.
          ``(2)(A) The spouse, minor child, and, at the discretion of 
        the Superintendent, unmarried adult child of a member of the 
        Armed Forces on active duty if such spouse, minor child, or 
        unmarried adult child dies while such member is on active duty.
          ``(B) The individual whose spouse, minor child, and unmarried 
        adult child is eligible under subparagraph (A), but only if 
        buried in the same gravesite as the spouse, minor child, or 
        unmarried adult child.
          ``(3) The parents of a minor child or unmarried adult child 
        whose remains, based on the eligibility of a parent, are 
        already buried in Arlington National Cemetery, but only if 
        buried in the same gravesite as that minor child or unmarried 
        adult child.
          ``(4)(A) Subject to subparagraph (B), the surviving spouse, 
        minor child, and, at the discretion of the Superintendent, 
        unmarried adult child of a member of the Armed Forces who was 
        lost, buried at sea, or officially determined to be permanently 
        absent in a status of missing or missing in action.
          ``(B) A person is not eligible under subparagraph (A) if a 
        memorial to honor the memory of the member is placed in a 
        cemetery in the national cemetery system, unless the memorial 
        is removed. A memorial removed under this subparagraph may be 
        placed, at the discretion of the Superintendent, in Arlington 
        National Cemetery.
          ``(5) The surviving spouse, minor child, and, at the 
        discretion of the Superintendent, unmarried adult child of a 
        member of the Armed Forces buried in a cemetery under the 
        jurisdiction of the American Battle Monuments Commission.
    ``(d) Spouses.--For purposes of subsection (c)(1), a surviving 
spouse of a person whose remains are buried in Arlington National 
Cemetery by reason of eligibility under subsection (a) who has 
remarried is eligible for burial in the same gravesite of that person. 
The spouse of the surviving spouse is not eligible for burial in such 
gravesite.
    ``(e) Disabled Adult Unmarried Children.--In the case of an 
unmarried adult child who is incapable of self-support up to the time 
of death because of a physical or mental condition, the child may be 
buried under subsection (c) without requirement for approval by the 
Superintendent under that subsection if the burial is in the same 
gravesite as the gravesite in which the parent, who is eligible for 
burial under subsection (a), has been or will be buried.
    ``(f) Family Members of Persons Buried in a Group Gravesite.--In 
the case of a person eligible for burial under subsection (a) who is 
buried in Arlington National Cemetery as part of a group burial, the 
surviving spouse, minor child, or unmarried adult child of the member 
may not be buried in the group gravesite.
    ``(g) Exclusive Authority for Burial in Arlington National 
Cemetery.--Eligibility for burial of remains in Arlington National 
Cemetery prescribed under this section is the exclusive eligibility for 
such burial.
    ``(h) Application for Burial.--A request for burial of remains of 
an individual in Arlington National Cemetery made before the death of 
the individual may not be considered by the Secretary of the Army, the 
Secretary of Defense, or any other responsible official.
    ``(i) Register of Buried Individuals.--(1) The Secretary of the 
Army shall maintain a register of each individual buried in Arlington 
National Cemetery and shall make such register available to the public.
    ``(2) With respect to each such individual buried on or after 
January 1, 1998, the register shall include a brief description of the 
basis of eligibility of the individual for burial in Arlington National 
Cemetery.
    ``(j) Definitions.--For purposes of this section:
          ``(1) The term `retired member of the Armed Forces' means--
                  ``(A) any member of the Armed Forces on a retired 
                list who served on active duty and who is entitled to 
                retired pay;
                  ``(B) any member of the Fleet Reserve or Fleet Marine 
                Corps Reserve who served on active duty and who is 
                entitled to retainer pay; and
                  ``(C) any member of a reserve component of the Armed 
                Forces who has served on active duty and who has 
                received notice from the Secretary concerned under 
                section 12731(d) of title 10 of eligibility for retired 
                pay under chapter 1223 of title 10.
          ``(2) The term `former member of the Armed Forces' includes a 
        person whose service is considered active duty service pursuant 
        to a determination of the Secretary of Defense under section 
        401 of Public Law 95-202 (38 U.S.C. 106 note).
          ``(3) The term `Superintendent' means the Superintendent of 
        Arlington National Cemetery.''.
    (2) The table of sections at the beginning of chapter 24 is amended 
by adding at the end the following new item:

``2412. Arlington National Cemetery: persons eligible for burial.''.

    (b) Publication of Updated Pamphlet.--Not later than 180 days after 
the date of enactment of this Act, the Secretary of the Army shall 
publish an updated pamphlet describing eligibility for burial in 
Arlington National Cemetery. The pamphlet shall reflect the provisions 
of section 2412 of title 38, United States Code, as added by subsection 
(a).
    (c) Technical Amendments.--Section 2402(7) is amended--
          (1) by inserting ``(or but for age would have been 
        entitled)'' after ``was entitled'';
          (2) by striking ``chapter 67'' and inserting ``chapter 
        1223''; and
          (3) by striking ``or would have been entitled to'' and all 
        that follows and inserting a period.
    (d) Effective Date.--Section 2412 of title 38, United States Code, 
as added by subsection (a), shall apply with respect to individuals 
dying on or after the date of the enactment of this Act.

SEC. 303. PERSONS ELIGIBLE FOR PLACEMENT IN THE COLUMBARIUM IN 
                    ARLINGTON NATIONAL CEMETERY.

    (a) In General.--(1) Chapter 24 is amended by adding after section 
2412, as added by section 302(a)(1) of this Act, the following new 
section:

``Sec. 2413. Arlington National Cemetery: persons eligible for 
                    placement in columbarium

    ``(a) Eligibility.--The cremated remains of the following 
individuals may be placed in the columbarium in Arlington National 
Cemetery:
          ``(1) A person eligible for burial in Arlington National 
        Cemetery under section 2412 of this title.
          ``(2)(A) A veteran whose last period of active duty service 
        (other than active duty for training) ended honorably.
          ``(B) The spouse, surviving spouse, minor child, and, at the 
        discretion of the Superintendent of Arlington National 
        Cemetery, unmarried adult child of such a veteran.
    ``(b) Spouse.--Section 2412(d) of this title shall apply to a 
spouse under this section in the same manner as it applies to a spouse 
under section 2412 of this title.''.
    (2) The table of sections at the beginning of chapter 24 is amended 
by adding after section 2412, as added by section 302(a)(2) of this 
Act, the following new item:

``2413. Arlington National Cemetery: persons eligible for placement in 
          columbarium.''.

    (b) Effective Date.--Section 2413 of title 38, United States Code, 
as added by subsection (a), shall apply with respect to individuals 
dying on or after the date of the enactment of this Act.

                   Subtitle B--World War II Memorial

SEC. 311. SHORT TITLE.

    This subtitle may be cited as the ``World War II Memorial 
Completion Act''.

SEC. 312. FUND RAISING BY AMERICAN BATTLE MONUMENTS COMMISSION FOR 
                    WORLD WAR II MEMORIAL.

    (a) Codification of Existing Authority; Expansion of Authority.--
(1) Chapter 21 of title 36, United States Code, is amended by adding at 
the end the following new section:

``Sec. 2113. World War II memorial in the District of Columbia

    ``(a) Definitions.--In this section:
          ``(1) The term ``World War II memorial'' means the memorial 
        authorized by Public Law 103-32 (107 Stat. 90) to be 
        established by the American Battle Monuments Commission on 
        Federal land in the District of Columbia or its environs to 
        honor members of the Armed Forces who served in World War II 
        and to commemorate the participation of the United States in 
        that war.
          ``(2) The term ``Commission'' means the American Battle 
        Monuments Commission.
          ``(3) The term ``memorial fund'' means the fund created by 
        subsection (c).
    ``(b) Solicitation and Acceptance of Contributions.--Consistent 
with the authority of the Commission under section 2103(e) of this 
title, the Commission shall solicit and accept contributions for the 
World War II memorial.
    ``(c) Creation of Memorial Fund.--(1) There is hereby created in 
the Treasury a fund for the World War II memorial, which shall consist 
of the following:
          ``(A) Amounts deposited, and interest and proceeds credited, 
        under paragraph (2).
          ``(B) Obligations obtained under paragraph (3).
          ``(C) The amount of surcharges paid to the Commission for the 
        World War II memorial under the World War II 50th Anniversary 
        Commemorative Coins Act.
          ``(D) Amounts borrowed using the authority provided under 
        subsection (e).
          ``(E) Any funds received by the Commission under section 
        2103(l) of this title in exchange for use of, or the right to 
        use, any mark, copyright or patent.
    ``(2) The Chairman of the Commission shall deposit in the memorial 
fund the amounts accepted as contributions under subsection (b). The 
Secretary of the Treasury shall credit to the memorial fund the 
interest on, and the proceeds from sale or redemption of, obligations 
held in the memorial fund.
    ``(3) The Secretary of the Treasury shall invest any portion of the 
memorial fund that, as determined by the Chairman of the Commission, is 
not required to meet current expenses. Each investment shall be made in 
an interest bearing obligation of the United States or an obligation 
guaranteed as to principal and interest by the United States that, as 
determined by the Chairman of the Commission, has a maturity suitable 
for the memorial fund.
    ``(d) Use of Memorial Fund.--The memorial fund shall be available 
to the Commission for--
          ``(1) the expenses of establishing the World War II memorial, 
        including the maintenance and preservation amount provided for 
        in section 8(b) of the Commemorative Works Act (40 U.S.C. 
        1008(b));
          ``(2) such other expenses, other than routine maintenance, 
        with respect to the World War II memorial as the Commission 
        considers warranted; and
          ``(3) to secure, obtain, register, enforce, protect, and 
        license any mark, copyright or patent that is owned by, 
        assigned to, or licensed to the Commission under section 
        2103(l) of this title to aid or facilitate the construction of 
        the World War II memorial.
    ``(e) Special Borrowing Authority.--(1) To assure that 
groundbreaking, construction, and dedication of the World War II 
memorial are completed on a timely basis, the Commission may borrow 
money from the Treasury of the United States in such amounts as the 
Commission considers necessary, but not to exceed a total of 
$65,000,000. Borrowed amounts shall bear interest at a rate determined 
by the Secretary of the Treasury, taking into consideration the average 
market yield on outstanding marketable obligations of theUnited States 
of comparable maturities during the month preceding the month in which 
the obligations of the Commission are issued. The interest payments on 
such obligations may be deferred with the approval of the Secretary of 
the Treasury, but any interest payment so deferred shall also bear 
interest.
    ``(2) The borrowing of money by the Commission under paragraph (1) 
shall be subject to such maturities, terms, and conditions as may be 
agreed upon by the Commission and the Secretary of the Treasury, except 
that the maturities may not exceed 20 years and such borrowings may be 
redeemable at the option of the Commission before maturity.
    ``(3) The obligations of the Commission shall be issued in amounts 
and at prices approved by the Secretary of the Treasury. The authority 
of the Commission to issue obligations under this subsection shall 
remain available without fiscal year limitation. The Secretary of the 
Treasury shall purchase any obligations of the Commission to be issued 
under this subsection, and for such purpose the Secretary of the 
Treasury may use as a public debt transaction of the United States the 
proceeds from the sale of any securities issued under chapter 31 of 
title 31. The purposes for which securities may be issued under such 
chapter are extended to include any purchase of the Commission's 
obligations under this subsection.
    ``(4) Repayment of the interest and principal on any funds borrowed 
by the Commission under paragraph (1) shall be made from amounts in the 
memorial fund. The Commission may not use for such purpose any funds 
appropriated for any other activities of the Commission.
    ``(f) Treatment of Borrowing Authority.--In determining whether the 
Commission has sufficient funds to complete construction of the World 
War II memorial, as required by section 8 of the Commemorative Works 
Act (40 U.S.C. 1008), the Secretary of the Interior shall consider the 
funds that the Commission may borrow from the Treasury under subsection 
(e) as funds available to complete construction of the memorial, 
whether or not the Commission has actually exercised the authority to 
borrow such funds.
    ``(g) Voluntary Services.--(1) Notwithstanding section 1342 of 
title 31, the Commission may accept from any person voluntary services 
to be provided in furtherance of the fund-raising activities of the 
Commission relating to the World War II memorial.
    ``(2) A person providing voluntary services under this subsection 
shall be considered to be a Federal employee for purposes of chapter 81 
of title 5, relating to compensation for work-related injuries, and 
chapter 171 of title 28, relating to tort claims. A volunteer who is 
not otherwise employed by the Federal Government shall not be 
considered to be a Federal employee for any other purpose by reason of 
the provision of such voluntary service, except that any volunteers 
given responsibility for the handling of funds or the carrying out of a 
Federal function are subject to the conflict of interest laws contained 
in chapter 11 of title 18, and the administrative standards of conduct 
contained in part 2635 of title 5, Code of Federal Regulations.
    ``(3) The Commission may provide for reimbursement of incidental 
expenses which are incurred by a person providing voluntary services 
under this subsection. The Commission shall determine which expenses 
are eligible for reimbursement under this paragraph.
    ``(4) Nothing in this subsection shall be construed to require 
Federal employees to work without compensation or to allow the use of 
volunteer services to displace or replace Federal employees.
    ``(h) Treatment of Certain Contracts.--A contract entered into by 
the Commission for the design or construction of the World War II 
memorial is not a funding agreement as that term is defined in section 
201 of title 35.
    ``(i) Extension of Authority To Establish Memorial.--
Notwithstanding section 10 of the Commemorative Works Act (40 U.S.C. 
1010), the legislative authorization for the construction of the World 
War II memorial contained in Public Law 103-32 (107 Stat. 90) shall not 
expire until December 31, 2005.''.
    (2) The table of sections at the beginning of chapter 21 of title 
36, United States Code, is amended by adding at the end the following 
new item:

``2113. World War II memorial in the District of Columbia.''.

    (b) Conforming Amendments.--Public Law 103-32 (107 Stat. 90) is 
amended by striking sections 3, 4, and 5.
    (c) Effect of Repeal of Current Memorial Fund.--Upon the date of 
the enactment of this Act, the Secretary of the Treasury shall transfer 
amounts in the fund created by section 4(a) of Public Law 103-32 (107 
Stat. 91) to the fund created by section 2113 of title 36, United 
States Code, as added by subsection (a).

SEC. 313. GENERAL AUTHORITY OF AMERICAN BATTLE MONUMENTS COMMISSION TO 
                    SOLICIT AND RECEIVE CONTRIBUTIONS.

    Subsection (e) of section 2103 of title 36, United States Code, is 
amended to read as follows:
    ``(e) Solicitation and Receipt of Contributions.--(1) The 
Commission may solicit and receive funds and in-kind donations and 
gifts from any State, municipal, or private source to carry out the 
purposes of this chapter. The Commission shall deposit such funds in a 
separate account in the Treasury. Funds from this account shall be 
disbursed upon vouchers approved by the Chairman of the Commission as 
well as by a Federal official authorized to sign payment vouchers.
    ``(2) The Commission shall establish written guidelines setting 
forth the criteria to be used in determining whether the acceptance of 
funds and in-kind donations and gifts under paragraph (1) would--
          ``(A) reflect unfavorably on the ability of the Commission, 
        or any employee of the Commission, to carry out the 
        responsibilities or official duties of the Commission in a fair 
        and objective manner; or
          ``(B) compromise the integrity or the appearance of the 
        integrity of the programs of the Commission or any official 
        involved in those programs.''.

SEC. 314. INTELLECTUAL PROPERTY AND RELATED ITEMS.

    Section 2103 of title 36, United States Code, is amended by adding 
at the end the following new subsection:
    ``(l) Intellectual Property and Related Items.--(1) The Commission 
may--
          ``(A) adopt, use, register, and license trademarks, service 
        marks, and other marks;
          ``(B) obtain, use, register, and license the use of 
        copyrights consistent with section 105 of title 17;
          ``(C) obtain, use, and license patents; and
          ``(D) accept gifts of marks, copyrights, patents and licenses 
        for use by the Commission.
    ``(2) The Commission may grant exclusive and nonexclusive licenses 
in connection with any mark, copyright, patent, or license for the use 
of such mark, copyright or patent, except to extent the grant of such 
license by the Commission would be contrary to any contract or license 
by which the use of such mark, copyright or patent was obtained.
    ``(3) The Commission may enforce any mark, copyright, or patent by 
an action in the district courts under any law providing for the 
protection of such marks, copyrights, or patents.
    ``(4) The Attorney General shall furnish the Commission with such 
legal representation as the Commission may require under paragraph (3). 
The Secretary of Defense shall provide representation for the 
Commission in administrative proceedings before the Patent and 
Trademark Office and Copyright Office.
    ``(5) Section 203 of title 17 shall not apply to any copyright 
transferred in any manner to the Commission.''.

      TITLE IV--UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

SEC. 401. TEMPORARY SERVICE OF CERTAIN JUDGES OF UNITED STATES COURT OF 
                    APPEALS FOR VETERANS CLAIMS UPON EXPIRATION OF 
                    THEIR TERMS OR RETIREMENT.

    (a) Authority for Temporary Service.--(1) Notwithstanding 
subsection (c) of section 7253 of title 38, United States Code, and 
subject to the provisions of this section, a judge of the Court whose 
term on the Court expires in 2004 or 2005 and completes such term, or 
who retires from the Court under section 7296(b)(1) of such title, may 
continue to serve on the Court after the expiration of the judge's term 
or retirement, as the case may be, without reappointment for service on 
the Court under such section 7253.
    (2) A judge may continue to serve on the Court under paragraph (1) 
only if the judge submits to the chief judge of the Court written 
notice of an election to so serve 30 days before the earlier of--
          (A) the expiration of the judge's term on the Court as 
        described in that paragraph; or
          (B) the date on which the judge meets the age and service 
        requirements for eligibility for retirement set forth in 
        section 7296(b)(1) of such title.
    (3) The total number of judges serving on the Court at any one 
time, including the judges serving under this section, may not exceed 
7.
    (b) Period of Temporary Service.--(1) The service of a judge on the 
Court under this section may continue until the earlier of--
          (A) the date that is 30 days after the date on which the 
        chief judge of the Court submits to the President and Congress 
        a written certification based on the projected caseload of the 
        Court that the work of the Court can be performed in a timely 
        and efficient manner by judges of the Court under this section 
        who are senior on the Court to the judge electing to continue 
        to provide temporary service under this section or without 
        judges under this section; or
          (B) the date on which the person appointed to the position on 
        the Court occupied by the judge under this section is qualified 
        for the position.
    (2) Subsections (f) and (g) of section 7253 of title 38, United 
States Code, shall apply with respect to the service of a judge on the 
Court under this section.
    (c) Temporary Service in Other Positions.--(1) If on the date that 
the person appointed to the position on the Court occupied by a judge 
under this section is qualified another position on the Court is 
vacant, the judge may serve in such other position under this section.
    (2) If two or more judges seek to serve in a position on the Court 
in accordance with paragraph (1), the judge senior in service on the 
Court shall serve in the position under that paragraph.
    (d) Compensation.--(1) Notwithstanding any other provision of law, 
a person whose service as a judge of the Court continues underthis 
section shall be paid for the period of service under this section an 
amount as follows:
          (A) In the case of a person eligible to receive retired pay 
        under subchapter V of chapter 72 of title 38, United States 
        Code, or a retirement annuity under subchapter III of chapter 
        83 or subchapter II of chapter 84 of title 5, United States 
        Code, as applicable, an amount equal to one-half of the amount 
        of the current salary payable to a judge of the Court under 
        chapter 72 of title 38, United States Code, having a status on 
        the Court equivalent to the highest status on the Court 
        attained by the person.
          (B) In the case of a person not eligible to receive such 
        retired pay or such retirement annuity, an amount equal to the 
        amount of current salary payable to a judge of the Court under 
        such chapter 72 having a status on the Court equivalent to the 
        highest status on the Court attained by the person.
    (2) Amounts paid under this subsection to a person described in 
paragraph (1)(A)--
          (A) shall not be treated as--
                  (i) compensation for employment with the United 
                States for purposes of section 7296(e) of title 38, 
                United States Code, or any provision of title 5, United 
                States Code, relating to the receipt or forfeiture of 
                retired pay or retirement annuities by a person 
                accepting compensation for employment with the United 
                States; or
                  (ii) pay for purposes of deductions or contributions 
                for or on behalf of the person to retired pay under 
                subchapter V of chapter 72 of title 38, United States 
                Code, or under chapter 83 or 84 of title 5, United 
                States Code, as applicable; but
          (B) may, at the election of the person, be treated as pay for 
        purposes of deductions or contributions for or on behalf of the 
        person to a retirement or other annuity, or both, under 
        subchapter V of chapter 72 of title 38, United States Code, or 
        under chapter 83 or 84 of title 5, United States Code, as 
        applicable.
    (3) Amounts paid under this subsection to a person described in 
paragraph (1)(B) shall be treated as pay for purposes of deductions or 
contributions for or on behalf of the person to retired pay or a 
retirement or other annuity under subchapter V of chapter 72 of title 
38, United States Code, or under chapter 83 or 84 of title 5, United 
States Code, as applicable.
    (4) Amounts paid under this subsection shall be derived from 
amounts available for payment of salaries and benefits of judges of the 
Court.
    (e) Creditable Service.--(1) The service as a judge of the Court 
under this section of a person who makes an election provided for under 
subsection (d)(2)(B) shall constitute creditable service toward the 
judge's years of judicial service for purposes of section 7297 of title 
38, United States Code, with such service creditable at a rate equal to 
the rate at which such service would be creditable for such purposes if 
served by a judge of the Court under chapter 72 of that title.
    (2) The service as a judge of the Court under this section of a 
person paid salary under subsection (d)(1)(B) shall constitute 
creditable service of the person toward retirement under subchapter V 
of chapter 72 of title 38, United States Code, or subchapter III of 
chapter 83 or subchapter II of chapter 84 of title 5, United States 
Code, as applicable.
    (f) Eligibility for Additional Service.--The service of a person as 
a judge of the Court under this section shall not affect the 
eligibility of the person for appointment to an additional term or 
terms on the Court, whether in the position occupied by the person 
under this section or in another position on the Court.
    (g) Treatment of Party Membership.--For purposes of determining 
compliance with the last sentence of section 7253(b) of title 38, 
United States Code, the party membership of a judge serving on the 
Court under this section shall not be taken into account.

SEC. 402. MODIFIED TERMS FOR CERTAIN JUDGES OF UNITED STATES COURT OF 
                    APPEALS FOR VETERANS CLAIMS.

    (a) Modified Terms.--Notwithstanding section 7253(c) of title 38, 
United States Code, the term of any judge of the Court who is appointed 
to a position on the Court that becomes vacant in 2004 shall be 13 
years.
    (b) Eligibility for Retirement.--(1) For purposes of determining 
the eligibility to retire under section 7296 of title 38, United States 
Code, of a judge appointed as described in subsection (a)--
          (A) the age and service requirements in the table in 
        paragraph (2) shall apply to the judge instead of the age and 
        service requirements in the table in subsection (b)(1) of that 
        section that would otherwise apply to the judge; and
          (B) the minimum years of service applied to the judge for 
        eligibility to retire under the first sentence of subsection 
        (b)(2) of that section shall be 13 years instead of 15 years.
    (2) The age and service requirements in this paragraph are as 
follows:

                                                        And the years of
                                                      service as a judge
  The judge has attained age:                               are at least

    65............................................................    13
    66............................................................    13
    67............................................................    13
    68............................................................    12
    69............................................................    11
    70............................................................    10

SEC. 403. TEMPORARY AUTHORITY FOR VOLUNTARY SEPARATION INCENTIVES FOR 
                    CERTAIN JUDGES ON UNITED STATES COURT OF APPEALS 
                    FOR VETERANS CLAIMS.

    (a) Temporary Authority.--A voluntary separation incentive payment 
may be paid in accordance with this section to any judge of the Court 
described in subsection (c).
    (b) Amount of Incentive Payment.--The amount of a voluntary 
separation incentive payment paid to a judge under this section shall 
be $25,000.
    (c) Covered Judges.--A voluntary separation incentive payment may 
be paid under this section to any judge of the Court who--
          (1) meets the age and service requirements for retirement set 
        forth in section 7296(b)(1) of title 38, United States Code, as 
        of the date on which the judge retires from the Court;
          (2) submits a notice of an intent to retire in accordance 
        with subsection (d); and
          (3) retires from the Court under that section not later than 
        30 days after the date on which the judge meets such age and 
        service requirements.
    (d) Notice of Intent To Retire.--(1) A judge of the Court seeking 
payment of a voluntary separation incentive payment under this section 
shall submit to the President and Congress a timely notice of an intent 
to retire from the Court, together with a request for payment of the 
voluntary separation incentive payment.
    (2) A notice shall be timely submitted under paragraph (1) only if 
submitted--
          (A) not later than one year before the date of retirement of 
        the judge concerned from the Court; or
          (B) in the case of a judge whose retirement from the Court 
        will occur less than one year after the date of the enactment 
        of this Act, not later than 30 days after the date of the 
        enactment of this Act.
    (e) Date of Payment.--A voluntary separation incentive payment may 
be paid to a judge of the Court under this section only upon the 
retirement of the judge from the Court.
    (f) Treatment of Payment.--A voluntary separation incentive payment 
paid to a judge under this section shall not be treated as pay for 
purposes of contributions for or on behalf of the judge to retired pay 
or a retirement or other annuity under subchapter V of chapter 72 of 
title 38, United States Code.
    (g) Eligibility for Temporary Service on Court.--A judge seeking 
payment of a voluntary separation incentive payment under this section 
may serve on the Court under section 401 if eligible for such service 
under that section.
    (h) Source of Payments.--Amounts for voluntary separation incentive 
payments under this section shall be derived from amounts available for 
payment of salaries and benefits of judges of the Court.
    (i) Expiration of Authority.--A voluntary separation incentive 
payment may not be paid under this section to a judge who retires from 
the Court after December 31, 2002.

SEC. 404. DEFINITION.

    In this title, the term ``Court'' means the United States Court of 
Appeals for Veterans Claims.
    Amend the title so as to read: ``A Bill To amend title 38, United 
States Code, to enhance programs providing health care and other 
benefits for veterans, to authorize major medical facility projects, to 
reform eligibility for burial in Arlington National Cemetery, and for 
other purposes.''.

                              introduction

    On May 19, 1999, Committee Chairman Arlen Specter 
introduced S. 1076, the proposed ``Veterans Benefits Act of 
1999.'' S. 1076, as introduced, would have provided for a 
December 1, 1999, cost-of-living adjustment (COLA), equal to 
the December 1, 1999, COLA in Social Security benefits, in the 
rates of compensation for veterans who have service-connected 
disabilities and in the rates of dependency and indemnity 
compensation (DIC) for the survivors of those who died from 
service-connected causes. In addition, S. 1076 would have, 
among other things: reauthorized, modified, and enhanced 
certain programs providing health care, education, and other 
benefits for veterans; authorized major medical facility 
projects; reformed eligibility for burial in Arlington National 
Cemetery; granted fund raising and borrowing authorities to 
facilitate the construction of a World War II Memorial; and 
modified provisions of law relating to the retirement of judges 
on the United States Court of Appeals for Veterans' Claims.

                           committee hearings

    On January 29, 1999, the Committee held a hearing on 
thefindings and recommendations of the Commission on Servicemembers and 
Veterans Transition Commission, a commission established by Public Law 
104-275. The Committee received testimony from former Senator Robert J. 
Dole, the sponsor of legislation first calling for the creation of the 
Commission; from Anthony J. Principi, the Chairman of the Commission; 
and from representatives of the Department of Veterans Affairs (VA) and 
the Department of Defense (DOD).
    On May 20, 1999, the Committee held a hearing on a number 
of bills pending before the Committee, including S. 1076. The 
Committee received testimony from Senator Kent Conrad; from 
representatives of the Department of Veterans Affairs (VA) and 
the Department of the Army; and from representatives of The 
American Legion, the Veterans of Foreign Wars (VFW), the 
Disabled American Veterans (DAV), the Paralyzed Veterans of 
America (PVA), AMVETS, and the Vietnam Veterans of America. In 
addition, the Committee received written statements for the 
record from the Chief Judge of the United States Court of 
Appeals for Veterans Claims; and from representatives of the 
American Federation of Government Employees, AFL-CIO, the 
National Association of Government Employees, the National 
Association of VA Physicians and Dentists, the Nurses 
Organization of Veterans Affairs, and National Coalition for 
Homeless Veterans.

                           committee meeting

    On June 23, 1999, the Committee met in open session to 
consider legislation pending before the Committee. Among the 
measures so considered were two original bills which were 
derived from Titles I and II of S. 1076, as introduced, and S. 
1076, as amended, to reflect the excision of Titles I and II 
from the bill and, further, to incorporate additional 
amendments. The Committee voted by unanimous voice vote to 
report the Committee bill, as further amended, favorably to the 
Senate.

               summary of the committee bill as reported

    S. 1076, as reported (hereinafter, the ``Committee bill''), 
contains four titles summarized below that would, among other 
things, improve, modify and extend certain authorities relating 
to medical services and homeless veterans services provided by 
VA and the Department of Labor; authorize major medical 
construction projects and modify authorities under which VA 
enters into ``enhanced use'' leases of VA-owned properties; 
modify VA benefits provided to certain Filipino veterans, to 
survivors of former prisoners of war, to hospitalized veterans 
who are incompetent, and to others; establish standards of 
eligibility for burial and inurnment in Arlington National 
Cemetery; authorize fund raising and borrowing by the American 
Battle Monuments Commission; and modify provisions of law 
relating to the retirement of judges of the United States Court 
of Appeals for Veterans Claims to encourage ``staggered'' 
retirements.

                         Title I--Medical Care

    Title I contains freestanding provisions and amendments to 
title 38, United States Code, that would:
    1. Remove a six-month time limitation on VA authority to 
provide adult day health care services to eligible veterans 
(section 101).
    2. Remove a requirement that respite care services be 
provided only in VA hospitals or nursing homes and permit such 
services to be provided also in the veteran-patient's home 
(section 102).
    3. Extend VA authority to enter into ``enhanced use 
leases''; expand the maximum authorized term of such leases to 
55 years; authorize the expenditure of minor project 
construction account funds for capital activities on property 
leased under that authority; require that VA expand its 
internal training and outreach activities, and secure an 
independent analysis of VA usage of its enhanced use lease 
authority, in order to encourage the greater utilization of 
such authority (section 111).
    4. Designate a hospital bed replacement building at the 
Ioannis A. Lougaris VA Medical Center in Reno, Nevada, the 
``Jack Streeter Building'' (section 112).
    5. Extend VA authority to provide housing assistance to 
homeless veterans (section 121).
    6. Expand VA authority to provide grants to homeless 
veteran service providers to permit such grants to assist in 
the expansion of existing programs as well as the establishment 
of new programs, and authorize appropriations for the providing 
of such grant assistance (section 122).
    7. Authorize appropriations to the Department of Labor to 
provide, directly or through grant assistance, homeless 
veterans' reintegration services (section 123).
    8. Require that VA report to the Congress on the 
effectiveness of programs to assist homeless veterans (section 
124).
    9. Require VA to provide or reimburse, as part of the 
``medical services'' furnished to enrolled veterans, emergency 
care services (section 131).
    10. Require that VA enhance, fund on a centralized basis, 
and report on, Post Traumatic Stress Disorder and substance use 
disorder services (section 132).
    11. Authorize VA to provide drug and alcohol dependency 
treatment services to active duty service personnel (section 
133).
    12. Require that third-party reimbursement and patient 
copayment funds collected by VA health care facilities be 
retained by the collecting health care facility (section 134).
    13. Extend VA authority to provide evaluations of the 
health care status of spouses and children of Persian Gulf War 
veterans and extend the requirement that VA conduct outreach 
activities to such veterans by issuing newsletters (section 
135).
    14. Require that VA and the Department of Defense report to 
Congress on coordination of pharmaceutical and medical supplies 
procurement (section 136).
    15. Require VA, for a one year period, to preserve in 
effect the fee-for-service reimbursement schedule under which 
providers of health care services to veterans in Alaska are 
paid, and to report on the potential adoption of Medicare's 
Participating Physician Fee Schedule as an alternative formula 
for reimbursing such care (section 137).
    16. Repeal the term limit of four years under which the 
VA's Under Secretaries for Health and Benefits serve (section 
138).
    17. Authorize major medical construction projects in 
Lebanon, Pennsylvania; Fargo, North Dakota; and Kansas City, 
Missouri (section 141).

                       Title II--Benefits Matters

    Title II contains amendments to title 38, United States 
Code, that would:
    1. Authorize the payment of funeral expenses and plot 
allowances to World War II Commonwealth Army of the Philippines 
veterans if, at the time of death, such veterans were citizens 
of the United States, were residing in the United States, and 
were either receiving compensation from VA or would have been 
eligible for pension benefits from VA had such service been 
deemed to be active military, naval, or air service (section 
201).
    2. Extend VA authority to maintain a Regional Office in the 
Republic of the Philippines (section 202).
    3. Extend VA authority to establish an Advisory Committee 
on Minority Veterans (section 203).
    4. Extend eligibility for dependency and indemnity 
compensation benefits to the survivors of former prisoners of 
war who die after September 30, 1999, and who were rated by VA 
as totally disabled for at least one year immediately preceding 
their death (section 204).
    5. Repeal the limitation of the payment of compensation, 
veterans pension, and other benefits to veterans receiving 
Federally-paid hospitalization, institutional, or domiciliary 
care and who are determined by VA to be incompetent (section 
205).
    6. Make clarifying amendments to provisions enacted in the 
``Veterans Employment Opportunities Act of 1998'' (Public Law 
105-339), relating to preferences granted to certain veterans 
in Federal hiring and contracting practices (section 206).

                      Title III--Memorial Affairs

    Title III contains amendments to titles 36 and 38, United 
States Code, that would:
    1. Establish standards of eligibility for burial in 
Arlington National Cemetery (section 302).
    2. Establish standards of eligibility for inurnment in the 
columbarium of Arlington National Cemetery (section 303).
    3. Codify authority for fundraising by the American Battle 
Monuments Commission (ABMC) for the establishment of a World 
War II memorial in Washington, DC, and authorize the ABMC to 
borrow funds from the Treasury to complete that memorial on a 
timely basis (section 312).
    4. Authorize ABMC to solicit and collect funds (section 
313).
    5. Authorize ABMC to adopt, use, register, license and 
enforce trade or service marks, copyrights and patents in 
connection with fundraising activities (section 314).

      Title IV--United States Court of Appeals for Veterans Claims

    Title IV contains freestanding provisions and amendments to 
title 38, United States Code, that would:
    1. Authorize the temporary appointment of judges of the 
United States Court of Appeals for Veterans Claims whose terms 
have expired or who have retired (section 401).
    2. Modify the terms (from 15 to 13 years) of judges who are 
appointed to positions on the United States Court of Appeals 
for Veterans Claims that become vacant in 2004 (section 402).
    3. Authorize until December 31, 2002, the payment of 
voluntary separation incentives to judges in the United States 
Court of Appeals for Veterans Claims who are eligible for 
retirement (section 403).

                               discussion

                         Title I--Medical Care


                       Subtitle A--Long Term Care


Background

    VA provides adult day health care services to eligible 
veterans, but subject to the generally-applicable six-month 
time limitation that applies to the receipt of VA-paid care at 
non-VA nursing homes (except when care is provided for a 
service-connected disability). See 38 U.S.C. 
Sec. Sec. 1720(f)(1)(A)(i), 1720(a)(3). In addition, VA 
provides ``respite care'' services to eligible veteran-patients 
limited duration, hospital or nursing home care provided to a 
chronically ill, home-bound veteran which permits the veteran's 
primary care giver, generally, a spouse, a ``respite'' so that 
the spouse may attend to needs outside the home. Such care, 
however, is defined to include only such care as is ``furnished 
in a Department facility.'' These services benefit veteran-
patients--and VA--by permitting them to defer or avoid hospital 
and/or nursing home admissions.

Committee Bill

    The Committee bill would remove the above-referenced 
restrictions. That is, it would (a) allow VA to provide adult 
day health care services without the temporal limitation 
applicable to the receipt of non-VA nursing home care; and (b) 
redefine ``respite care'' to include, in addition to hospital 
or nursing home care furnished in a VA facility, home-based 
care furnished in the home of the veteran-patient.

       Subtitle B--Management of Medical Facilities and Property


Background

    VA is authorized by subchapter V of title 38, United States 
Code, to enter into ``enhanced use leases''--long-term leases 
of underutilized VA properties to nongovernmental entities for 
monetary or ``in-kind'' remuneration which improve and maximize 
the uses of those properties and which, further, advance VA's 
missions. VA has leased land under this authority to nursing 
home care providers where VA places veteran-patients at 
discounted rates; to providers of transitional housing for 
homeless veterans and adult day health care services for senior 
veterans; to providers of child care services for VA employees' 
families; and to commercial developers of office space on VA 
medical center campuses that also house VA regional offices and 
provide veterans convenience and improved access to services.
    VA's enhanced use lease authority is scheduled to expire on 
December 31, 2001. That authority, first created by Public Law 
102-86, has been repeatedly extended and expanded since 
enactment of Public Law 102-86. Most recently, Public Law 104-
114 removed limitations on the number of enhanced use leases 
into which VA could enter.

Committee Bill

    Under current law, the maximum terms of enhanced use leases 
are limited to 35 years in cases where the lessee puts a new 
structure on VA land, and 20 years in cases where the lessee 
utilizes an existing structure. 38 U.S.C. Sec. 8162(b)(2). 
Relatively short lease terms, and distinctions in lease terms 
based on new construction or existing structures are 
inconsistent with commercial practice and have hampered VA use 
of this authority. Accordingly, section 111(a) of the Committee 
bill would authorize leases with terms of up to 55 years, and 
eliminate the statutory distinction between leases involving 
new construction and existing structures.
    Currently, VA may only expend funds in furtherance of 
enhanced use leases appropriated for the VA activity 
(typically, a VA medical center or a regional office) which 
will be the recipient of space or services under the lease. 
Section 111(b) of the Committee bill would amend 38 U.S.C. 
Sec. 8162(b)(4) to authorize the expenditure of funds 
appropriated to VA's minor project construction account to 
facilitate VA-funded capital activities on land to be leased so 
that more favorable lease terms can be secured.
    As noted above, VA authority to enter into enhanced use 
leases is currently scheduled to expire on December 31, 2001. 
Lease negotiations can be quite complex, and development may 
take years to complete. The parties to complex negotiations 
need to know that their efforts will not be in vain due to the 
expiration of statutory authority. Indeed, that contingency has 
deterred commercial enterprises from negotiating with VA at 
all. Section 111(c) of the Committee bill would remove that 
impediment by extending VA's authority to enter into enhanced 
use leases now. And it would extend it for a lengthy enough 
period--10 years--to assure that such uncertainties will not 
impede leasing activity.
    Section 111(d) of the Committee bill would require VA to 
provide training and outreach regarding enhanced use leasing to 
VA medical center staff. Not surprisingly, most such projects 
are developed in the field where VA employees are most familiar 
with local interest in VA land and local commercial 
opportunities. The Committee believes thatincreased training at 
the local level--training which has been provided, to date, on a by-
request basis and only sporadically--will lead to the identification of 
more, and better, enhanced use lease opportunities. Similarly, section 
111(e) of the Committee bill would require that VA secure an 
independent assessment of further opportunities for enhanced use 
leases. The Committee believes that a more systematic and centralized 
approach would assist the VA in maximizing enhanced use lease 
opportunities.

                     Subtitle C--Homeless Veterans


Background

    VA and the Department of Labor (DOL) provide assistance to 
homeless veterans through various mechanisms, both directly and 
by assisting community-based not-for-profit entities that 
furnish assistance and services to homeless veterans. VA 
assistance to community-based organizations takes two primary 
forms: VA transfers VA-acquired residential properties to such 
entities for their use to house homeless veterans and their 
families, see 38 U.S.C. Sec. 3735; and VA makes grants to such 
entities to assist them in establishing new programs to furnish 
outreach, rehabilitative services, vocational counseling and 
training, and transitional housing services to homeless 
veterans, see Sec. Sec. 2-4, Public Law 102-590, codified at 38 
U.S.C. Sec. 7721 note. DOL is authorized by the Stewart B. 
McKinney Homeless Assistance Act, 42 U.S.C. Sec. 11361 et seq., 
to provide directly, or through DOL grantees, job training and 
related services to expedite the reintegration of homeless 
veterans into the work force. These authorities were most 
recently extended by the Veterans' Benefits Act of 1997, Public 
Law 105-114, for a two year period. These extensions were 
relatively brief in length because the Committee was not then 
satisfied that VA and DOL were adequately evaluating the 
effectiveness of programs administered or assisted by the 
agencies.

Committee Bill

    The Committee bill would extend the above-referenced 
authorities for two additional years. The Committee is still 
not satisfied that the effectiveness of programs to assist 
homeless veterans is adequately measured--or that Federal 
agencies generally, and VA specifically, have even developed 
tools through which such measurements might be made. An April 
1999 report of the General Accounting Office states as follows:

        Despite the resources VA has devoted to homeless 
        programs--over $640 million between fiscal years 1987 
        and 1997--VA has little information about the 
        effectiveness of its homeless programs. VA has relied 
        on [the VA Northeast Program Evaluation Center (NEPEC)] 
        to gather and report information on its homeless 
        programs. Each of VA's homeless program sites routinely 
        submits extensive data, mostly related to client 
        characteristics and operations at individual program 
        sites. These data . . . are of limited use in assessing 
        program effectiveness. To evaluate effectiveness, 
        information must be gathered about intended program 
        results. The outcome measures that NEPEC uses focus on 
        housing, employment, and changes in substance abuse and 
        mental health at the time veterans are discharged from 
        VA's homeless programs. Little is known about whether 
        veterans served by VA's homeless programs remain housed 
        or employed, or whether they instead relapse into 
        homelessness.

    Homeless Veterans: VA Expands Partnerships, but Homeless 
Program Effectiveness Is Unclear (GAO/HEHS-99-53, April 1, 
1999) at 2 (emphasis added). Accordingly, the Committee bill 
mandates that VA furnish to the Committee, not later than three 
months after the date of enactment, a detailed plan for the 
evaluation of programs to assist homeless veterans. That plan, 
under the Committee bill, would have to contain an 
identification of outcome measures adopted by VA to determine 
whether veterans who are provided housing and employment-
related services are, in fact, housed and employed six months 
after housing and employment have been secured under such 
programs.

                Subtitle D--Other Health Care Provisions

            Emergency Care Services

Background

    VA does not currently pay for care provided to veterans in 
non-VA facilities except in limited circumstances. VA will 
reimburse emergency care provided to veterans who have totally 
and permanently disabling service-connected disabilities. In 
addition, VA will reimburse emergency care provided to veterans 
with less than totally and permanently disabling service-
connected disabilities if those service-connected disabilities 
have been previously adjudicated. Even so, VA will only 
reimburse emergency care to treat the previously-adjudicated 
service-connected disability or a disability associated with 
and aggravated by that service-connected disability. Such 
services must have been provided in a medical emergency; and 
must have been provided in a situation where care in a Federal 
facility was not available. 38 C.F.R. Sec. 17.120.
    VA provides a ``standard'' benefits package to all 
veterans--whether they have a previously-adjudicated service-
connected disability or not--who are enrolled for VA health 
care under 38 U.S.C. Sec. 1705. This package includes a range 
of services, including hospital care, inpatient and outpatient 
primary care and preventive care services, prescription drugs 
and prosthetic devices, mental health care, rehabilitation 
care, home health care, and hospice care. This benefits package 
does not provide emergency care services to enrolled veterans. 
Enrolled veterans, therefore, must rely on insurance to pay for 
such services--or they must pay for such services themselves. 
Large and unexpected emergency medical care bills can present a 
significant financial burden to enrolled veterans, a burden 
which many or most, quite reasonably, did not anticipate when 
they enrolled for VA care.
    The Administration announced, when it submitted its fiscal 
year 2000 VA budget request, that it intended to propose that 
emergency care services be provided to some enrolled veterans, 
but such a proposal was not forthcoming. In any event, that 
proposal would have requested such a benefit only for service-
connected veterans--not all enrolled veterans. On May 27, 1999, 
Senator Tom Daschle introduced S. 1146, the proposed 
``Veterans'' Access to Emergency Care Act of 1999,'' which 
would have improved all enrolled veterans' access to emergency 
medical care services in non-VA health care facilities.

Committee Bill

    Section 131 of the Committee bill was drawn directly from 
S. 1146 and would require that VA--as a ``payer of last 
resort'' pay for emergency care provided to enrolled veterans 
at non-VA facilities. As the ``payor of last resort,'' VA would 
reimburse an enrolled veteran's emergency care costs to the 
extent that such costs had not already been reimbursed by 
Medicare or other third-party payers (health care plans or 
insurance carriers) from whom the veteran might be entitled to 
reimbursement. In addition, claims would only be paid by VA in 
cases where the symptoms displayed were of sufficient severity 
to cause a prudent layperson to reasonably expect that the 
absence of immediate medical attention would result in serious 
jeopardy, in serious impairment to bodily functions, or in 
serious dysfunction of an organ or body part.
            Specialized Mental Health Services

Background

    From its inception, VA's health care system has been 
challenged to meet the special needs of veteran-patients with 
combat wounds such as spinal cord injuries, amputations, 
blindness, and post-traumatic stress disorder (PTSD). VA has 
developed widely recognized expertise in providing specialized 
services to meet these needs.
    In recent years, VA's specialized programs have come under 
stress due to budget cuts, reorganizations, and the 
introduction of a new resource allocation system. In addition, 
passage of Public Law 104-262, the ``Veterans'' Health Care 
Eligibility Reform Act of 1996,'' brought significant changes 
in the way VA provides health care services. In recognition of 
the potential that ``eligibility reform,'' if unchecked, might 
result in the weakening of VA's specialized services programs, 
Public Law 104-262 requires that VA maintain capacity to 
provide for the specialized treatment needs of disabled 
veterans at the level in existence on the date, October 9, 
1996, on which Public Law 104-262 was enacted.
    Public Law 104-262 also contained a provision requiring 
that VA report annually to Congress on the provision of 
specialized services care. VA's May 1998 report states that, 
``by and large, the capacity of the special programs . . . has 
been maintained nationally.'' The General Accounting Office has 
found, however, that ``much more information and analyses are 
needed to support VA's conclusion''--even as so qualified. 
Finally, VA's Advisory Committee on Prosthetics and Special 
Disability Programs called VA's data ``flawed.'' It, therefore, 
declined to endorse VA's 1998 report.
    The Committee's minority staff has undertaken an oversight 
project of 5 specialized services programs--Prosthetics and 
Sensory Aids services; Blind Rehabilitation services; Spinal 
Cord Injury (SCI) services; Post-Traumatic Stress Disorders 
(PTSD) services; and substance use disorder services--to assess 
VA compliance with Public Law 104-262. Staff has concluded that 
(a) VA field personnel had been able--but just barely--to 
maintain the historic levels of services in the Prosthetics, 
Blind Rehabilitation, and SCI programs; but (b) VA's PTSD and 
substance use disorder programs are not being maintained in 
accordance with the mandate of Public Law 104-262. Staff 
concluded that because of staff and funding reductions and 
resulting increases in workloads and excessive waiting times, 
VA is not sustaining services at needed levels in the latter 
two programs.
    VA has reduced inpatient treatment of PTSD and has expanded 
the use of outpatient programs. That decision has been fueled, 
in part, by cost concerns. While the Committee does not 
criticize VA actions to stretch limited funding, it believes 
that VA must be cautious before it subscribes to the view that, 
for all veterans, outpatient treatment of PTSD is as effective 
as inpatient care. Inpatient or bed-based care may be a 
necessity for seriously ill veterans and for those who are 
homeless, jobless, or have multiple diagnoses.
    It should be noted, however, that successful bed-based 
programs need not rely on inpatient beds, as traditionally 
defined. Other promising approaches use ``hoptel'' or 
domiciliary beds. Such programs do not require the full range 
of nursing services or other treatment staff, and they are 
cost-effective alternatives to traditional inpatient programs. 
At the same time, such venues provide the physical security and 
safety that are crucial to the healing process, particularly 
for homeless veterans or others in marginal living situations.
    Substance use disorders also present complex treatment 
problems. Persons diagnosed with substance use disorders often 
have physical and psychiatric comorbidities or other 
psychosocial problems such as homelessness or unemployment. 
Unfortunately, VA's substance use disorder treatment programs 
have been under budgetary pressure. Thus, treatment has shifted 
to outpatient-based settings. At some sites, VA has terminated 
all inpatient treatment, except short term detoxification. 
Other VA medical centers have closed inpatient substance abuse 
disorder beds, but have opened ``hoptel'' beds or established 
relationships with halfway houses or other community-based 
programs to provide VA outpatients with needed lodging. Not all 
VA facilities, however, have made such efforts. Many have 
closed inpatient units without developing other treatment 
alternatives. It is the Committee's view that VA mental health 
treatment programs, in general, have been eroded.

Committee Bill

    Section 132 of the Committee bill mandates that VA enhance 
specialized mental health services--specifically PTSD and 
substance use disorder treatment services--provided to 
veterans. It requires that resources be directed to the 
development of: additional outpatient and residential treatment 
facilities in locations that are currently underserved by PTSD 
programs; programs which place emphasis on both short- and 
long-term residential treatment programs for veterans with 
PTSD--especially those with comorbidities; outpatient PTSD 
programs to provide follow up and case management services; and 
increased staffing for PTSD programs that have exceeded 
workload projections.
    With respect to substance use disorder services, the 
Committee bill requires that resources be directed to the 
development or expansion of: residential treatment facilities; 
opioid substitution treatment services;and services at sites 
where treatment has been curtailed, where demand for services is high, 
or where large populations with substance use disorders are served.
    Section 132 is aimed at improving mental health services by 
requiring that mechanisms for funding services within the 
Veterans Integrated Service Networks, and at individual 
facilities, be centralized. It is not aimed at rebuilding the 
traditional inpatient infrastructure; rather, it seeks to focus 
on expanding outpatient and residential treatment facilities, 
developing better case management, and generally improving the 
availability of services.
            Drug and Alcohol Dependency Treatment Services

Background

    Subject to limitations imposed under current law, VA is 
authorized by section 1720A(c) of title 38, U.S. Code, to 
provide treatment and rehabilitation services to active duty 
service personnel who are dependent on or abuse alcohol or 
drugs--but only during the last thirty days of the service 
member's enlistment period or tour of duty, and only if the 
service member requests such services during the last thirty 
days of his or her enlistment period or tour of duty.
    It is the Committee's view that VA and the Department of 
Defense (DOD) should share, exchange, and mutually use their 
respective health care resources, subject to reimbursement, to 
the maximum extent practicable in order to improve both the 
quality, and the efficiency, of the services provided by each. 
See 38 U.S.C. Sec. 8111. VA has opined that the 30-day 
limitation imposed by section 1720A(c) is inconsistent with the 
policies expressed by section 8111 and has, accordingly, 
requested that the limitation be stricken.

Committee Bill

    The Committee bill would strike the 30-day limitation 
imposed by 38 U.S.C. Sec. 1720A(c). The Committee concurs in 
the view that, subject to space availability and appropriate 
reimbursement by DOD, active duty service members ought to have 
access to VA's expertise in treating drug and alcohol abuse and 
dependence disorders without regard to whether they will be 
``veterans'' within a 30-day period or any other arbitrary time 
frame.
            Medical Care Collection Fund

Background

    In connection with the providing of health care services to 
veterans, VA collects or recovers funds from two major sources: 
(a) from ``non-priority'' veterans who are required to make co-
payments when they receive inpatient or outpatient care 
services, see 38 U.S.C. Sec. Sec. 1710(f) and 1710(g), and 
prescription medications, see 38 U.S.C. Sec. 1722A; and (b) 
from third parties (e.g., veterans' health care plans or health 
insurance carriers, workers' compensation programs, etc.) that 
would be responsible for either providing, or paying for, care 
for a veteran's non-service-connected disabilities were they 
not treated by VA, see 38 U.S.C. Sec. 1729. In addition, VA is 
authorized to provide emergency care, as a humanitarian 
service, to any person in emergency need. But VA is required to 
charge fees for such services. See 38 U.S.C. Sec. 1711. Such 
``Medical Care Collections Fund'' (MCCF) monies are collected 
locally by the VA medical center or clinic which provides the 
services giving rise to the receipt of funds.
    Section 8023 of the Balanced Budget Act of 1997 (Public Law 
105-33) specifies that VA will retain MCCF funds collected 
(rather than remitting them to the Treasury) and, further, that 
VA's ``designated health care regions'' (under the Veterans 
Health Administration's current organizational structure, its 
22 ``Veterans Integrated Service Networks'' (VISNs)) shall 
retain collected MCCF monies for spending within each VISN. The 
purpose of these provisions was to stimulate collections by VA 
as a whole by providing an incentive for VA collectively to 
pursue owed funds, and, equally, by providing incentives to the 
actual collectors of funds--the local medical centers and 
clinics--for the aggressive pursuit of funds owed to VA. The 
Committee, however, supported VA's request that such funds be 
retained and managed at the VISN--rather than at the local 
medical center--level in order to foster the integration of 
VA's networks as coherent, integrated health care providers. 
The Balanced Budget Act reflects that support.

Committee Bill

    The Committee continues to support the concept of health 
care delivery to veterans from the template of integrated 
networks. It is, however, concerned that MCCF recoveries 
(scheduled to rise, according to VA estimates, by less than 20 
percent to $749 million in fiscal year 2000) will be 
insufficient to allow VA to meet is stated goal of securing 10 
percent of its medical care funding needs from non-appropriated 
sources by fiscal year 2002. The Committee bill, therefore, 
would increase the incentives for collections by local VA 
medical centers by modifying the Balanced Budget Act to specify 
that, henceforth, MCCF funds will be retained by each 
collecting VA health care facility.
            Pharmaceuticals Procurement

Background

    As noted above, the Committee held a hearing on January 29, 
1999, on the findings and recommendations of the Commission on 
Servicemembers and Veterans Transition Commission (hereafter, 
the ``Commission''). It received testimony from former Senator 
Robert J. Dole (the sponsor of legislation creating the 
Commission); from Anthony J. Principi, the Chairman of the 
Commission; and from representatives of VA and DOD.
    Among the findings made by the Commission were the 
following:
    1. In 1998, segmented purchasing by the federal healthcare 
sector is wasteful and makes no sense when it results in the 
loss of the quantity discounts that the private sector has 
demonstrated are possible.
    2. VA already procures medical surgical supplies for 
virtually the entire federal healthcare sector except DoD.
    3. DoD and VA could applying [sic] the savings realized 
from combining their purchasing power for pharmaceuticals, as 
well as medical/surgical supplies and equipment, to increase 
the amount of healthcare provided to their beneficiaries * * *
    4. Joint purchasing of pharmaceuticals as well as medical/
surgical supplies and equipment would allow the Departments to 
develop additional procurement leverage * * *
    5. A clinically based joint DoD/VA formulary would improve 
cost-effectiveness of pharmacy operations, without compromising 
healthcare for beneficiaries.
    6. Application of universal product numbers to medical 
surgical [sic] supplies would result in procurement savings by 
encouraging price competition for the purchase of standardized 
products.
    Based on these findings, the Commission recommended, among 
other things, that legislation be enacted to:
    1. Require DoD and VA to establish a single joint DoD/VA 
procurement office to purchase, in the most cost-effective 
manner possible, DoD/VA pharmaceuticals, as well as medical/
surgical supplies and equipment.
    2. Require DoD and VA to follow the example of large 
private sector healthcare systems by developing a clinically 
based joint formulary within one year.
    3. Require that medical and surgical supplies be assigned 
universal product numbers (similar to those assigned to 
pharmaceuticals).

Committee Bill

    The Committee bill requires that VA and DOD submit to the 
Congress, on or before March 1, 2000, a report on VA and DOD 
cooperation in the procurement of pharmaceuticals and medical 
supplies. The Committee expects to then determine whether a 
statutory mandate will be required to assure that VA and DOD 
take appropriate action to exercise their market power for the 
benefit of their beneficiaries and the taxpayer.

 Subtitle E--Major Medical Facility Projects Construction Authorization


Background

    VA may not obligate or expend funds on any ``major medical 
facility project'' unless that project has been specifically 
authorized by law. 38 U.S.C. Sec. 8104. A ``major medical 
facility project'' is one that would involve the construction, 
alteration, or acquisition of a medical facility involving the 
total expenditure of more than $4 million.
    VA has previously been authorized to proceed with the major 
medical facility projects during fiscal years 1999 and 2000 at 
the following sites and in the following amounts: Long Beach, 
California ($23.2 million); San Juan, Puerto Rico ($50 
million); Washington, D.C. ($29.7 million); Palo Alto, 
California ($22.4 million); Cleveland (Wade Park), Ohio ($28.3 
million); Tucson, Arizona ($35 million); Dallas, Texas ($24.2 
million); Lebanon, Pennsylvania ($23.2 million); Tampa, Florida 
($46.3 million). See section 701 of Public Law 105-368. Public 
Law 105-276 appropriated funds for fiscal year 1999 for the 
Long Beach, San Juan, Cleveland, Tucson, and Lebanon projects. 
The Committee continues to support the remaining projects which 
were authorized by Public Law 105-368: Washington, D.C.; Palo 
Alto; Dallas; and Tampa.

Committee Bill

    Subtitle E of title I of the Committee bill would add three 
additional major medical facility projects to those already 
authorized by Public Law 105-368: a long term care facility at 
Lebanon, PA ($14.5 million); renovations and environmental 
improvements in Fargo, ND ($12 million); and a surgical suite 
and post-anesthesia care unit project in Kansas City, MO ($13 
million).
    The Lebanon, PA project is the second part of a two phase 
long-term care project. The first phase was authorized by 
Public Law 105-368 and consisted of a $9.5 million nursing home 
renovation to provide 90 transitional care unit, and 22 
subacute, nursing home beds. Thesecond phase will involve 
renovations to provide the following forms of long term care other than 
nursing home care: a 38-bed unit to treat veterans suffering from 
dementia and behavioral health disorders and illnesses; an adult day 
health care unit; a 22 bed hospice care unit that is currently 
located--inappropriately--adjacent to the surgical ward within the 
acute care hospital unit; and a 30 bed personal care unit to be 
operated by the Commonwealth of Pennsylvania under an ``enhanced use 
lease'' agreement.
    Long term care is the most pressing need of the aging World 
War II and Korean War generation; the total number of veterans 
over the age of 85 will increase every year until the year 
2015. Yet it is a need which VA has not been able to meet 
within current or projected funding levels. The Committee 
believes that VA needs to test and demonstrate treatment and 
care alternatives at a single comprehensive care facility; it 
intends that the two-phase Lebanon VA Medical Center project 
serve as a model, and a test site, for VA and private sector 
health care providers. The Lebanon VA Medical Center is 
uniquely suited to that purpose; 46% of its South Central 
Pennsylvania patients are age 65 or over and, of these, 80% are 
priority enrollment patients under section 1705 of title 38, 
United States Code. Finally, Pennsylvania veterans are, on 
average, among the oldest in the Nation, exceeded in age only 
by Florida's veterans. Thus, the need for long term care 
services in Pennsylvania is acute.
    The Fargo, North Dakota, project would provide for 
environmental improvements--including asbestos removal, fire 
safety improvements (alarms and sprinklers), patient privacy 
and handicapped accessibility improvements, and the 
installation of a central air conditioning system--to two 
patient care floors in Building 9 of the medical center. The 
Fargo VA Medical Center has positioned itself well to handle 
the VA's shift toward outpatient care by recently completing an 
ambulatory care addition and undertaking a minor project to 
renovate existing ambulatory care space for increased 
efficiency and patient privacy. The inpatient areas which must 
remain desperately need to be upgraded to comply with modern 
health care standards. In a climate where temperatures can 
reach over 105 degrees in the summer, air conditioning is a 
necessity for patient care and customer satisfaction.
    The Kansas City, Missouri project would involve the 
construction of a new surgical suite and post anesthesia care 
unit to replace an aging--and, literally, crumbling--suite that 
was constructed in the late 1950's. Deficiencies were noted at 
the existing suite by the Joint Commission on Accreditation of 
Healthcare Organizations, including a lack of sterile and 
proper infection control conditions, poor airflow, patient 
privacy deficiencies and other deficiencies. In short, the 
current facility is, at best, inadequate to accommodate current 
and future surgical technology.

                       Title II--Benefits Matters

            Burial Benefits to Certain Filipinos

Background

    The Philippine Islands became a U.S. possession at the 
conclusion of the Spanish-American War in 1898, and remained a 
U.S. possession until 1946. Public Law 73-127, enacted in 1934, 
established the Philippine Islands as a Commonwealth which had 
certain powers relating to its internal affairs and the power 
to organize and maintain a Commonwealth Army. The United States 
reserved the right to place all Commonwealth forces under U.S. 
command between 1934 and the date of Philippine independence 
(July 4, 1946), should events so require. President Roosevelt 
so exercised this authority on July 26, 1941, and brought the 
Philippine Commonwealth Army under the command of the U.S. Army 
Forces of the Far East (USAFFE). During World War II, certain 
organized guerrilla resistance units were recognized by the 
U.S. Army as having fought under U.S. command; these units are 
now recognized to have been part of the Philippine Commonwealth 
Army. Members of the Philippine Commonwealth Army remained 
under command of the USAFFE until June 29, 1946.
    After World War II, Congress limited the size and scope of 
U.S. veterans' benefits available to Commonwealth Army 
veterans, taking into consideration differences in the costs-
of-living in the United States and the Philippines and the 
newly-independent Nation's responsibility to care for its own 
veterans. It did not, however, make Commonwealth Army veterans 
ineligible for U.S. benefits. Then--and now--former members of 
the Commonwealth Army may qualify for disability compensation, 
burial benefits, and National Service Life Insurance benefits, 
and their survivors may qualify for Dependency and Indemnity 
Compensation. Such benefits, however, are provided at half the 
rate they are provided to U.S. veterans due to the difference 
in the cost of living in the Phillippines relative to the 
United States. Commonwealth Army veterans are not eligible for 
other VA benefits, including pension payments, health-care 
benefits (except on a space-available basis, in the United 
States, for service-connected disabilities), burial in the 
national cemeteries, or readjustment benefits.
    Many Commonwealth Army veterans perceive the limitation on 
U.S. benefits as an injustice. They argue that having served 
under U.S. command, they merit the same benefits as U.S. 
veterans. Others contend, however, that continued differences 
in the cost of living in thePhillippines relative to the United 
States justify the payment of benefits at a one-half rate and that, in 
any event, U.S. benefits to Commonwealth Army veterans were not limited 
solely on cost-of-living grounds but also in recognition of the 
responsibilities of the newly-independent Republic of the Phillippines. 
The Committee believes this position has validity--but, even so, the 
justification for one-half benefits is weakened when it is applied to 
Commonwealth Army veterans who are now United States citizens resident 
in the U.S.

Committee Bill

    The Committee does not now conclude that benefits afforded 
to Commonwealth Army veterans are inequitable. A number of 
factors were taken into account--not just the cost-of-living 
issue--in determining the size and scope of benefits to be made 
available to Commonwealth Army veterans. Notwithstanding, the 
cost-of-living issue was a significant--if not determinative--
concern.
    In view of the foregoing, section 201 of the Committee Bill 
would provide, in cases of death after enactment of section 
201, a full-rate funeral expense and plot allowances ($300 and 
$150, respectively) to Philippine Commonwealth Army veterans 
who, at the time of death: (a) are naturalized citizens of the 
United States resident in the United States; and (b) are 
receiving compensation for a service-connected disability or 
would have been eligible for VA pension benefits had their 
service been deemed to have been active military, naval, or air 
service.
            DIC Benefits to Survivors of Former POWs

Background

    VA pays dependency and indemnity compensation (DIC) 
benefits under chapter 13 of title 38, United States Code, to 
the surviving spouse, dependent children, and dependent parents 
of service members who have died during active duty, and to the 
surviving spouse, children, and dependent parents of veterans 
who have died after service as a result of a service-connected 
condition. In addition, VA provides benefits in the same amount 
as DIC to the surviving spouse and children of veterans who 
have died after service from a non-service-connected cause if 
the veteran had been totally disabled due to a service-
connected cause for a continuous period of 10 or more years 
immediately preceding death or for a continuous period of at 
least 5 years after the veteran's release from service. 38 
U.S.C. Sec. 1318. In cases of death after December 31, 1992, a 
surviving spouse is paid DIC, in 1999, at a rate of $861 per 
month as supplemented if the spouse is housebound or in need of 
regular aid and attendance and as further adjusted to account 
for the number of dependent children the deceased veteran left. 
The survivors of former prisoners of war (``POWs'') are 
eligible for DIC benefits under the same rules as other 
veterans.
    Approximately 52,000 former POWs are alive today; all but 
3,000 are veterans of World War II and almost all of the 
remaining 3,000 are veterans of the Korean War. About 2,000 
former POWs are totally disabled, but many are WWII former POWs 
who will not likely meet the ``10 year rule'' noted above. The 
widows of these former POWs--they are overwhelmingly men--will 
not be eligible for DIC and could, therefore, be left destitute 
despite the fact that their spouses endured the most arduous of 
service conditions.

Committee Bill

    Section 204 of the Committee bill would provide for payment 
of DIC to the survivors of former POWs who have died from non-
service-connected causes if the former POW was totally disabled 
due to a service-connected cause for a period of one or more 
years (rather than 10 or more years) immediately prior to 
death.
            Repeal of Limitation on Benefits to Incompetent, 
                    Institutionalized Veterans

Background

    Under current law, VA is prohibited from paying 
compensation and pension benefits to an incompetent veteran who 
has assets of $1500 or more if the veteran is being provided 
institutional care by VA (or another Federal provider) and he 
or she has no dependents. Such payments are restored if the 
veteran's assets drop to $500 in value. 38 U.S.C. Sec. 5503(b). 
The threshold dollar amounts ($1500 and $500) specified by 
section 5503 have not been updated since they were established 
in 1933.

Committee Bill

    Section 205 of the Committee bill would repeal the 
limitation on benefits payments imposed by section 5503.
    Most fundamentally, the Committee notes that the purpose of 
section 5503 appears to be to prevent the accumulation of large 
``unneeded'' estates by incompetent veterans who are 
institutionalized for long periods of time and who have no one 
dependent upon them for support. Presumably, such persons (like 
prisoners, see 38 U.S.C. Sec. Sec. 5313, 5313(A) do not need 
the money if they have no ``outside'' obligations and all of 
their needs are being provided for by VA. However, if it is 
true that members of the former group do not need the money for 
these reasons, it is equally true that competent personsin the 
same position do not need the money. Yet their benefits are not 
reduced; there is no prohibition against the payment of benefits to 
institutionalized competent veterans who have no dependents.
    Apart from the more fundamental issues raised by section 
5503, the Committee notes that the threshold amounts of the 
statute have not been updated since 1933. The purposes and the 
practical impact of the statute have been wholly distorted by 
that fact. In 1933, the $1500 threshold amount affected few 
recipients of compensation or pension benefits; at that time, 
when a totally disabled veteran received a benefit of $45 per 
month, a veteran would have to have been in receipt of benefits 
for many months before the statutory cutoff was triggered. In 
1999, however--after 66 years of inflation--the receipt of one 
compensation check provided to a 100% service-connected 
veteran, $1,989, triggers the suspension of payments. 
Similarly, there was a time--presumably, in 1933--when $500 was 
an adequate sum of money to allow a newly deinstitutionalized, 
formerly incompetent, veteran to reestablish a life outside the 
hospital. Today, however, a formerly incompetent person who 
leaves institutional care with only $500 is, at best, highly 
vulnerable. That sum of money does not, in today's economy, 
suffice to provide for basic necessities of life for a period 
of a month or more between discharge and the resumption of VA 
compensation or pension payments. Finally, during the Great 
Depression, long-term hospitalization for mental illness was 
commonplace. Today, hospital stays--even hospital stays by 
persons deemed to be incompetent--are shorter in term. VA, 
therefore, finds itself in a position of cutting off benefits 
precipitously even during a relatively short hospitalization 
only to be faced with the need to restart them immediately upon 
release. Thus, the dated statutory thresholds are not only 
burdensome to veterans. They needlessly impede VA's efforts to 
reduce the workload backlogs in its regional offices.

                      Title III--Memorial Affairs


                Subtitle A--Arlington National Cemetery


Background

    Since late 1997, when a deceased ambassador, who had been 
buried in Arlington National Cemetery in January, 1996, was 
exhumed after it was revealed that he had falsely claimed to 
have been a veteran of World War II, questions have been raised 
concerning eligibility for burial in Arlington and whether such 
standards are adequately known by, and revealed to, the public; 
whether exceptions to allow the burial of ineligible persons 
there have been properly granted in the past; and whether 
exceptions should be granted in the future. The Committee has 
studied these issues closely, and has made a number of findings 
including the following:
    1. From 1948 until 1967, all veterans were generally 
eligible for burial in Arlington. In 1967, however, the 
Department of the Army adopted policies, by regulation, 
limiting eligibility for burial there to slow the rate of new 
burials and to extend the ``life'' of the then-rapidly filling 
cemetery.
    2. The 1967 regulations generally limited eligibility to 
service personnel who died in service, to retired career 
service members, to veterans who distinguished themselves 
either in service (by, for example, meriting specified 
decorations) or after service (by, for example, holding high 
public office), and to those persons' immediate family members. 
In the Committee's view, those regulations are generally 
reasonable--but they merit adjustment. Further, it is 
appropriate and necessary that such standards be established by 
statute.
    3. The practice of granting exceptions to allow the burial 
of persons who are not eligible for burial in Arlington was 
authorized by statute in 1948, see Act of May 14, 1948, 62 
Stat. 234. That statute, however, was repealed in 1973, see 
Public Law 93-43. Since 1973, there has been no specific 
statutory authorization of that practice in place. Moreover, 
that practice has not been delineated by regulation or any 
binding policy document. Rather, it has evolved, and it appears 
to exist today, on a purely ad hoc basis.
    4. Of the more than 250,000 persons buried or inurned at 
Arlington since the Civil War, fewer than 200 (less than one-
tenth of 1%) are ineligible persons who have been granted 
exceptions. Of these, the majority are exceptions which have 
allowed the burial of an eligible person's non-immediate family 
members, most often in the same plot as the eligible person.
    5. Of the minority of exceptions granted to persons other 
than non-immediate family members of eligible veterans, most 
(over 80%) have been granted to veterans who were entitled to 
inurnment in Arlington's columbarium. Fewer than 20 persons 
among the 250,000+ who are buried or inurned in Arlington are 
non-veteran, non-family members who were buried or inurned in 
Arlington pursuant to an exception.
    6. It does not appear that an excessive number of 
exceptions have been granted by Arlington over the years. Nor 
does it appear that exceptions have ever been granted on 
inappropriate grounds such as political influence or 
favoritism. The exceptions process, however, has not followed 
set, written, and publicly-available standards or formal 
precedents. As a consequence, it is inherently arbitrary.
    7. Until recently, Arlington did not report to Congress 
when exceptions were granted. Accordingly, oversight has been 
sporadic and uneven.

Committee Bill

    The Committee bill addresses the issues raised by the 
above- summarized findings. First, it would establish statutory 
standards for burial in Arlington National Cemetery. Generally, 
the standards would remain as they are now: Arlington would be 
reserved as a burial site for service members who had died in 
service; for retired career service members; for non-career 
service veterans who had distinguished themselves in or after 
service by receiving decorations for valor, by being former 
prisoners of war, or by holding senior post-service civilian 
offices; and for their families. Under the Committee bill, 
however, persons qualified for burial on the basis of post-
military Government service would be limited to the Vice 
President, Members of Congress, Justices of the United States 
Supreme Court, Cabinet members, and--a new category--persons 
who, while serving in the foreign service or the national 
security services, were killed abroad due to hostile action in 
the course of such service. In addition, the Committee bill 
would authorize the burial of any former President in 
Arlington, whether he or she had served in the military or not. 
These persons, and their family members, would be the only 
persons ``automatically'' eligible for burial in Arlington.
    The Committee notes that its rules would expand the 
categories of family members who would be eligible for burial 
in Arlington--but only in cases where such family members are 
buried in the same plot as an eligible person. In such cases, 
allowing family members to ``share'' a single plot will not 
result in either the premature ``filling'' of Arlington or the 
inability of any eligible person to gain burial there due to 
space limitations. The Committee intends that its expansion of 
family member eligibility will result in a significant 
reduction in requests for exceptions allowing the burial of 
ineligible deceased persons in Arlington. The Committee also 
notes that the Committee bill's allowance of the burial of 
diplomatic and national security personnel who are killed by 
hostile action overseas would render an additional category of 
historic exception requests unnecessary.
    Despite these adjustments to the current eligibility 
standards set by regulation, the Committee has still concluded 
that there needs to be a mechanism in place by which requests 
on behalf of persons who are not eligible for burial might be 
considered. In the past, distinguished veterans (e.g., Joe 
Louis) and non-veterans (e.g., Justice Thurgood Marshall) have 
been granted exceptions. The Committee cannot conclude that 
such persons do not merit consideration. Accordingly, the 
Committee bill would authorize the Secretary of Defense to 
grant exceptions in cases involving ineligible veterans, and 
authorize the President--and only the President--to grant 
exceptions in rare cases where a non-veteran might have served 
the Nation with such distinction that he or she might 
appropriately be considered for burial there. As Arlington, 
however, is properly viewed as a final resting place for those 
who have borne arms in defense of the Nation, such cases would 
be, in the Committee's view, extremely rare.
    To assure ongoing and systematic oversight of the 
exceptions process, the Committee bill would require that the 
Committees on Veterans Affairs of the Senate and the House of 
Representatives be notified within 72 hours of the granting of 
any exception. In addition, notices of all such exceptions 
would be published in the Federal Register. Finally, the 
Committee bill would require that Arlington National Cemetery 
maintain a publicly-available register identifying all persons 
buried in Arlington after January 1, 1997, and specifying the 
basis for each deceased person's eligibility for burial there.

                   Subtitle B--World War II Memorial


Background

    Public Law 103-32 authorizes the American Battle Monuments 
Commission (ABMC) to establish a World War II Memorial in or 
near Washington, DC. That Memorial will honor the 16 million 
servicemembers who served during World War II, the 406,000 
service members who died, and the millions of Americans who 
supported the war effort from home.
    The authorizing statute requires that ABMC solicit funds 
for the Memorial from private contributors and that 
construction be financed with those funds. In addition, the 
authorizing statute requires that ABMC comply with the 
provisions of the Commemorative Works Act, 40 U.S.C. Sec. 1001 
et seq., which mandates, among other things, that (a) the 
Memorial's site and design proposal be approved by the National 
Capital Planning Commission, the Commission of Fine Arts, and 
the Secretary of the Interior; and (b) that sufficient funds 
(including 10% of the total construction cost to cover 
perpetual maintenance of the Memorial) be collected before 
construction is initiated. In addition, the Commemorative Works 
Act specifies that all authorizations of commemorative works 
will expire seven years from the date of enactment. In the case 
of the World War II Memorial, such authority will expire on May 
25, 2000.
    ABMC expects that it will gain final design approval for 
the Memorial in late 1999. Securing 110% of the funds needed to 
complete the Memorial before the expiration of the Memorial's 
authorization,however, is a challenge that will likely not be 
met. As of June, 1999, ABMC had raised $60 million (in cash or in the 
form of pledges) of an estimated $100 million needed for full 
construction and maintenance costs. $30 million was raised in the first 
half of 1999 alone, indicating wide and growing public support for the 
Memorial spurred, in part, by the efforts of actor Tom Hanks to build 
public support for the Memorial. Unfortunately, much of the money that 
ABMC has raised is in the form of pledges--pledges from large 
corporations that appear to be secure, but which will be collected in 
yearly increments over a four to five year period.
    ABMC now estimates that the start of Memorial construction 
will be delayed until 2003 (necessitating, at minimum, a 
reenactment of the Memorial's soon-to-expire authorization), 
with completion of the project to occur in 2005. This projected 
delay is a major concern for the Committee; 1,000 World War II 
veterans die each day. A three year delay in Memorial 
construction will mean that approximately 1.2 million veterans 
will not be able to view the long awaited monument to their 
service.
    In its fiscal year 2000 budget submission, the 
Administration requested legislation to extend the period of 
time within which construction of the Memorial must be 
initiated until December 31, 2005. In addition, the 
Administration requested that ABMC's fundraising capabilities 
be enhanced by authorizing ABMC to secure and enforce patent, 
copyright and other intellectual property interests, and by 
permitting ABMC to accept voluntary services in furtherance of 
the Memorial. Finally, the Administration requested that ABMC 
be directed to promulgate integrity guidelines to govern the 
acceptance and disbursement of funds.

Committee Bill

    The Committee concurs with the Administration's legislative 
request--insofar as it goes. The Committee bill, therefore, 
extends the authorization for construction of the Memorial to 
December 31, 2005. Such an extension will eliminate the current 
requirement that, at minimum, a construction permit be obtained 
by May 25, 2000; it will, therefore, permit ABMC to proceed in 
an orderly fashion. Further, the Committee bill requires that 
ABMC establish written integrity guidelines, as requested. In 
addition, it contains provisions making explicit ABMC's implied 
authority to accept voluntary services and, further, affording 
volunteers protections should they become injured or incur 
expenses while fulfilling Memorial-related volunteer duties. 
Finally, the Committee bill contains the intellectual property 
protections requested by ABMC. The Committee anticipates that 
ABMC's ability to obtain corporate contributions would be 
greatly enhanced through appropriate trademark licensing, and 
similar, programs (as were conducted by DOD to gain 
contributions in support of commemoration events marking the 
50th anniversary of World War II).
    The Committee is of the view that these authorities--and, 
more importantly, growing public support of the Memorial--will 
assure that the Memorial will be built in due course. The 
Committee, however, does not anticipate that construction be 
delayed further. To the contrary, the Committee expects that 
ground will be broken for the Memorial on Veterans Day, 2000. 
The Committee bill, accordingly, contains an additional 
provision not requested by the Administration: a ``special 
borrowing authority'' provision.
    As noted above, the Commemorative Works Act requires that 
full construction and maintenance cost funds actually be in 
hand before actual construction of the Memorial can begin. So 
that ABMC can meet this requirement, and still proceed with the 
Memorial now, the Committee bill authorizes ABMC to borrow up 
to $65 million from the Treasury subject to maturity and 
repayment terms, and other conditions as agreed upon by the 
Secretary of the Treasury and ABMC. The practice of borrowing 
money against future pledges is common in the private sector; 
it was used to fund the Statue of Liberty-Ellis Island project, 
the Japanese American National Museum in Los Angeles, and other 
projects where ground was broken before full construction 
funding had been collected, and it did not hamper the 
collection of contributions for these projects.

      Title IV--United States Court of Appeals for Veterans Claims


Background

    The U.S. Court of Veterans Appeals, renamed the U.S. Court 
of Appeals for Veterans Claims (hereafter, the ``Court'') in 
1998, see section 511 of Public Law 105-368, was created in 
1988 by Public Law 100-687. The Court has exclusive 
jurisdiction to review decisions of the VA's Board of Veterans' 
Appeals (hereafter, ``BVA''), an administrative body within VA 
that decides questions of fact and law affecting the provision 
of benefits by VA. 38 U.S.C. Sec. 7104. Matters are appealed to 
BVA upon the filing of a ``notice of disagreement'' and a 
``substantive appeal'' by a claimant who seeks review of a VA 
regional office decision on a claim for benefits. 38 U.S.C. 
Sec. 7105. A claimant may generally appeal an adverse BVA 
decision to the Court by filing a ``notice of appeal'' within 
120 days of a final BVA decision. 38 U.S.C. Sec. 7266.
    The Court is comprised of one chief judge and six associate 
judges. All but one of these judges (hereafter, the ``original 
judges'') were appointed for 15-year terms during a 16-month 
period in 1989-1991 following the creation of the Court. (The seventh 
current judge was appointed in November 1997 for a 15-year term to fill 
the vacancy created by the death of Judge Hart Mankin, one of the 
original judges.) All six of the remaining original judges' terms will 
expire within a 16-month window in 2004-2005.
    The Court has requested legislation to authorize one judge 
per year to retire before the end of his term, with minimal 
reduction in retirement benefits, in order to allow for an 
orderly, and non-simultaneous, transition from the first 
generation of judges to a second. The Court-requested 
legislation also contained provisions to modify and clarify the 
Court's retirement and survivors' annuity benefits.

Committee Bill

    Title IV of the Committee bill would do three things: it 
would authorize judges whose terms have expired to continue to 
serve on a temporary basis until their successors take office; 
it would offer an incentive to judges to retire as soon as they 
are eligible (rather than waiting for the expiration of their 
15-year terms); and it would modify the terms of some judges 
yet to be appointed so that the simultaneous expiration of 
terms will not occur again in or around 2015.
    As matters currently stand, it is possible that the Court 
will have six vacancies in 2004-2005. Clearly, the Court could 
not operate in such circumstances. Thus, section 401 provides 
that judges whose terms have expired would be authorized to 
continue to serve in a temporary status until their seat is 
filled or their service is no longer required. Judges whose 
terms had expired and who were eligible for retirement would 
receive 50 percent of the salary of sitting judges and full 
retirement benefits while serving in temporary status; judges 
who are not retirement eligible would continue to draw full 
salary. In all cases, judges serving in temporary status could 
elect to continue contributing to their retirement and/or 
survivors' annuity programs during the length of their 
temporary service.
    Section 402 of the Committee bill would stagger the term 
expiration dates of judges appointed to succeed those whose 
terms will have expired in 2004 by reducing the terms of those 
appointees from 15 to 13 years. Thus, if these vacancies are 
filled in the same year the vacancy is created and the new 
appointees serve their complete terms, 2004 appointees would 
serve until 2017 and 2005 appointees would serve until 2020--
and the prospect, as in 2004--2005, of en masse term 
expirations will be mitigated.
    As noted above, a judge whose term has not yet expired may 
nonetheless be eligible to retire if the sum of his or her age 
and years of service on the Court (but not fewer than 10 years) 
equals 80. 38 U.S.C. Sec. 7296(b)(1) (the ``rule of 80''). In 
order to encourage the retirement of judges who will satisfy 
the rule of 80 prior to December 31, 2002, but whose terms will 
not expire until 2004-2005, section 403 of the Committee bill 
would provide a retirement incentive of $25,000. The 
Committee's sole purpose is to avoid simultaneous retirements 
in 2004-2005 and to allow the initial members of the Court's 
second generation of judges to be seated and to gain their 
judicial bearings prior to the appointment of the remainder of 
judges to succeed those whose terms will expire in 2004-2005.
    The Committee notes that, if there is a vacancy in the 
position of chief judge, the senior associate judge serves as 
acting chief judge unless the President designates another of 
the associate judges to so serve. 38 U.S.C. Sec. 7254(d). If 
the chief judge (or acting chief judge) were to retire prior to 
the expiration of his or her term, and he or she were to elect 
to serve in temporary status as authorized by section 401 of 
the Committee bill, the Committee does not envision that a 
judge serving in temporary status would continue to serve as 
chief judge (or acting chief judge) during such temporary 
status even if such temporary service were to occur within the 
bounds of the judge's 15-year term. The critical work of the 
chief judge must, in the Committee's view, be performed by a 
sitting judge, not one serving in temporary status. The 
Committee anticipates that it will review this issue, and 
others involving succession to the office of chief judge, 
further.

                             COST ESTIMATE

    In compliance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate, the Committee, based on 
information supplied by CBO, estimates that enactment of the 
Committee bill would result in increases in direct spending, as 
compared to costs under current law and as scored against the 
current CBO baseline, of $66 million during fiscal year 2000, 
and by $385 million during fiscal years 2000 through 2004. In 
addition, enactment of the Committee bill would result in 
increases in outlays of $138 million during fiscal year 2000 
and $1.885 billion during fiscal years 2000 through 2004 
assuming appropriations of the necessary amounts. The Committee 
bill would not affect the budgets of State, local or tribal 
governments, and would impose no intergovernmental or private 
sector mandates as defined in the Unfunded Mandates Reform Act.
    The cost estimate provided by CBO, setting forth a detailed 
breakdown of costs, follows:
                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 21, 1999.
Hon. Arlen Specter,
Chairman, Committee on Veterans' Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office (CBO) 
has prepared the enclosed cost estimate for S. 1076, the 
Veterans Benefits Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sunita 
D'Monte.
            Sincerely,
                                          Dan L. Crippen, Director.
Enclosure
cc: Honorable John D. Rockefeller
    Ranking Minority Member

               Congressional Budget Office Cost Estimate


                                S. 1076


                     Veterans Benefits Act of 1999


As ordered reported by the Senate Committee on Veterans Affairs on June 
                                23, 1999


Summary

    The Veterans Benefits Act of 1999 contains provisions that 
would affect a wide range of veterans' programs, including 
medical care, disability compensation, dependency and indemnity 
compensation (DIC), and the American Battle Monuments 
Commission (ABMC). CBO estimates that enacting the bill would 
increase direct spending by about $66 million in 2000, $385 
million over the 2000-2004 period, and $802 million over the 
10-year period 2000-2009. Because the bill would affect direct 
spending, pay-as-you-go procedures would apply. In addition, 
the bill would authorize funding or modify provisions governing 
a number of discretionary veterans' programs, which would 
result in additional outlays of $138 million in 2000 and $1,885 
million over the 2000-2004 period, assuming appropriation of 
the necessary amounts. S. 1076 contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act (UMRA) and would impose no costs on the budgets of 
state, local, or tribal governments.

Estimated cost to the Federal Government

    The estimated budgetary impact of the bill is shown in 
Table 1. The costs of this legislation fall within budget 
function 700 (veterans affairs).

Basis of Estimate Direct Spending

    The bill would affect direct spending in memorial affairs 
and veterans' programs for disability compensation, DIC, and 
burial benefits (see Table 2).

 TABLE 1. BUDGETARY IMPACT OF S. 1076, AS ORDERED REPORTED BY THE SENATE
                     COMMITTEE ON VETERANS'' AFFAIRS
------------------------------------------------------------------------
                                 By Fiscal Year, in Millions of Dollars
                               -----------------------------------------
                                 1999   2000   2001   2002   2003   2004
------------------------------------------------------------------------
                             DIRECT SPENDING
Proposed Changes:
    Estimated Budget Authority      0     72     75    142     78     79
    Estimated Outlays.........      0     66     75     87     78     79
                    SPENDING SUBJECT TO APPROPRIATION
Proposed Changes:
    Estimated Authorization       \1\    366    330    395    422    443
     Level....................
    Estimated Outlays.........    \1\    138    364    457    465   461
------------------------------------------------------------------------
\1\ Less than $500,000.

    Payments to Veterans in Institutions. Under current law, 
the Department of Veterans Affairs (VA) withholds benefit 
payments from certain incompetent veterans who are 
institutionalized at the government's expense and whose estates 
are valued above $1,500. Section 205 would repeal this $1,500 
limit, thereby enabling more veterans to receive benefit 
payments.
    The budgetary impact of this provision would depend on how 
many veterans would begin receiving benefits and the value of 
the benefits. Information from VA indicates that about 3,300 
veterans each month would benefit from the bill. Those veterans 
have neither a spouse nor a child and are being furnished 
hospital treatment or domiciliary carewithout charge. Based on 
information from VA, CBO expects that 90 percent of those veterans are 
considered totally disabled and thus would be eligible to receive 
benefits of about $24,500 a year, and that the remaining 10 percent 
would receive annual benefits of about $7,000, an amount corresponding 
to an average disability rating of 50 percent. Thus, CBO estimates that 
implementing this provision would raise direct spending by about $75 
million a year.
    Spouses of Former Prisoners of War. Section 204 would 
authorize the payment of DIC to the surviving spouses of 
certain former prisoners of war (POW) who, at the time of 
death, had a service-connected disability rated totally 
disabling for at least one year.

                                     TABLE 2. ESTIMATED CHANGES IN DIRECT SPENDING UNDER S. 1076 AS ORDERED REPORTED
                                                    [By fiscal year, outlays in millions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         1999     2000     2001     2002     2003     2004     2005     2006     2007     2008     2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 DISABILITY COMPENSATION

Spending Under Current Law...........................   17,968   18,761   19,495   20,113   20,645   21,152   23,469   22,266   20,954   23,353   23,945
Proposed Changes:
    Veterans in Institutions.........................        0       66       74       75       75       76       83       77       71       77       78
    Spouses of Former POWs...........................        0        a        1        2        3        3        4        5        6        7        8
                                                      --------------------------------------------------------------------------------------------------
    Subtotal.........................................        0       66       75       77       78       79       87       82       77       84       86
Spending Under S. 1076...............................   17,968   18,827   19,570   20,190   20,723   21,231   23,556   22,348   21,031   23,437   24,031

                                                          AMERICAN BATTLE MONUMENTS COMMISSION

Spending Under Current Law...........................       13       11        7        6       85       13        5        1        1        0        0
Proposed Changes:
    Borrowing Authority..............................        0        0        0       10        0        0        0        0        0        0        0
Spending Under S. 1076...............................       13       11        7       16       85       13        5        1        1        0        0

                                                                 TOTAL PROPOSED CHANGES

Estimated Outlays \1\................................        0       66       75       87       78       79       87       82       77       84       86
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Less than $500,000.

    Under current law, DIC payments are authorized for 
survivors of service-members or veterans who died from a 
disease or injury that was incurred or aggravated while on 
active duty or from a disability compensable by VA. DIC 
payments may also be made if the veteran's death was not the 
result of a service-connected disability if the veteran was 
continuously rated totally disabled for a period of 10 or more 
years immediately preceding death or the veteran was so rated 
for a period of at least five years from the date of military 
discharge. Section 204 would change current law by allowing 
surviving spouses of former POWs to qualify for DIC benefits if 
the veteran had been rated as totally disabled for at least one 
year at the time of death.
    Information from the VA indicates that approximately 1,900 
former POWs receive disability compensation, are totally 
disabled, and have a spouse. CBO uses age-specific mortality 
rates to estimate that about 80 of these veterans will die each 
year. Based on data from VA, the estimate recognizes that some 
of the spouses will remarry, making them ineligible for DIC 
benefits, and that an increasing percentage of spouses will be 
eligible for benefits under current law. In addition to 
veterans who are already totally disabled, CBO expects that a 
few former POWs who now have a rating lower than 100 percent 
will become totally disabled in future years. Some of the 
spouses of those veterans would also gain eligibility to DIC as 
a result of the bill. Based on this analysis, CBO expects that 
in 2000 about 30 spouses would begin receiving payments, which 
in that year would average about $11,700 annually. By 2004 the 
total number of spouses receiving benefits under this proposal 
would increase to about 250. CBO estimates that enacting the 
bill would raise direct spending by less than $500,000 in 2000 
and by about $39 million over the 2000-2009 period.
    American Battle Monuments Commission. Title II would grant 
borrowing authority and expand other fund-raising authorities 
of the American Battle Monuments Commission to expedite the 
establishment of the World War II memorial in the District of 
Columbia. CBO estimates that the bill would not have a 
significant budgetary impact in 2000 but that it would increase 
spending by about $10 million over the 2000-2009 period.
    The ABMC is responsible for maintaining and constructing 
U.S. monuments and memorials commemorating the achievements in 
battle of the armed forces. In 1993, the Congress authorized 
the ABMC to establish a memorial in the District of Columbia to 
honor members of the armed forces who served in World War II. 
The ABMC was granted the authority to solicit and accept 
private contributions for this memorial.
    In addition to extending these authorities, title III would 
authorize the ABMC to borrow up to $65 million from the 
Treasury to ensure that the groundbreaking, construction, and 
dedication of the memorial are completed in a timely manner. 
Since the initial authorization in 1993, a fund-raising 
campaign has raised over $25 million in private contributions, 
and the location and design concept of the memorial have been 
approved. The Commemorative Works Act of 1986 requires the ABMC 
to show that it has sufficient funds before obtaining a 
construction permit from the Department of the Interior to 
complete construction of the memorial. Data from the ABMC 
indicates that itwill not have sufficient funds available in 
2000 to meet this requirement. The borrowing authority in the bill 
would enable the ABMC to satisfy this requirement and to break ground 
in 2000. Assuming enactment of the bill, the total costs of the 
memorial are estimated to be about $145 million through 2005.
    The budgetary impact of the bill would depend on the amount 
of borrowing authority the ABMC would use and when it would be 
repaid. Based on information from the ABMC, CBO estimates that 
it would borrow and spend $10 million in 2002. The ABMC expects 
that contributions and other income would allow it to repay the 
loan plus interest in 2003 and 2004. However, there is a chance 
that the ABMC will be unable to raise sufficient funds from 
private donors, especially if the borrowing authority that the 
bill would provide discourages such donations. Also, 
construction costs could exceed the ABMC's estimates. Thus, CBO 
estimates that the bill would be likely to raise direct 
spending by $10 million, although the actual amount could be 
more or less than that.
    Other Provisions. The bill contains other provisions that 
would have little or no impact on direct spending.
    Burial Benefits for Certain Filipino Veterans. Under 
section 201, certain Filipino veterans of the Philippine 
Commonwealth Army during World War II (WWII) would receive new 
or increased burial and plot allowances if they are naturalized 
U.S. citizens living in the United States. Under current law, 
some of those Filipino veterans receive a total allowance of 
about $225 or half the rate paid for U.S. veterans; the bill 
would increase the benefit to the full rate. It would also 
grant the full allowance of $450 for certain Filipino veterans 
who do not now receive any benefit, if they meet the income and 
disability tests for veterans' pensions and are U.S. citizens 
living in the United States.
    Information from the Department of Veterans Affairs 
indicates that about 80,000 surviving Filipino veterans of WWII 
served in units covered by the bill. According to data from the 
Immigration and Naturalization Service (INS), 20,000 Filipino 
veterans have become naturalized U.S. citizens since 1990, but 
INS does not know where those veterans reside. CBO has no 
information on the number or residence of the veterans who 
became citizens prior to 1990 and would be affected by this 
bill.
    CBO estimates that the costs of section 201 would be below 
$500,000 annually. This estimate is based on projected 
mortality rates and two additional judgments, which indicate 
that the number of beneficiaries of this bill is likely to be 
small. First, most Filipino veterans who have become U.S. 
citizens since 1990 probably live in the Philippines because 
the Immigration Act of 1990 (Public Law 101-649) does not 
require them to reside in the United States and because 
individuals at their ages are unlikely to emigrate. (These 
veterans would have been at least in their mid-60s when they 
became citizens.) Second, based on census information, it is 
likely that many of the targeted veterans who reside in the 
United States do not meet the income or disability tests for 
benefits under the bill. Therefore, CBO expects that only a 
small percentage of the 80,000 veterans covered by the bill 
would be able to qualify for new or increased benefits.
    Health Examinations for Dependents of Gulf War Veterans. 
Section 135 would extend the Persian Gulf Spouse and Children 
Examination Program until December 31, 2002. This program, 
which expires on December 31, 1999, requires VA to provide 
diagnostic testing and health examinations, but not treatment, 
to dependents of Gulf War veterans who volunteer for testing in 
order to study the association between illnesses of veterans 
and illnesses of their family members. According to VA, 
approximately $500,000 has been spent on over 1,100 exams since 
the inception of this program in 1996. VA currently has another 
500 exams pending, and CBO expects that spending will be less 
than $500,000 annually.
    Enhanced-Use Leases. Section 111 would expand VA's program 
of enhanced-use leases. Such leases provide VA with cash or 
other items of value in exchange for the right to use assets of 
the department. Under current law, these arrangements usually 
result in barter rather than cash payments to VA because cash 
proceeds must be returned to the Treasury; thus, section 111 
would not significantly affect the budget.

Spending Subject to Appropriation

    Table 3 shows estimated effects of S. 1076 on discretionary 
programs, assuming that appropriations are provided in the 
amount of the estimated authorizations.
    Reimbursement for Emergency Care. Section 131 would 
significantly expand VA's authority to reimburse veterans and 
institutions for emergency care. It would allow VA to pay for 
care stemming from life- or health-threatening emergencies 
involving a veteran who is enrolled with VA for care and has no 
other coverage for emergencies. CBO estimates that this 
provision would increase spending by about $80 million in 2000 
and about $400 million a year by 2004, assuming appropriation 
of the necessary amounts. Those costs would stem from the costs 
of emergency room care and any subsequent hospital care.
    Of the 3 million veterans enrolled with VA, CBO estimates 
that about 750,000 are uninsured and would be eligible for 
benefits under the bill. Emergency room care represents about 3 
percent of the costs of private health plans. Emergency room 
costs would be two to threetimes greater for veterans covered 
by the bill, however, based on their generally poorer health. Thus, CBO 
estimates that the immediate costs of emergencies would amount to about 
$155 million annually (in 2000 dollars).
    CBO estimates that two-thirds of all visits to the 
emergency room would be urgent and that 16 percent of those 
visits would lead to admitting the veteran for an inpatient 
stay. For veterans under 65 years of age, the average hospital 
stay would cost about $7,000. For veterans 65 years old or 
older, Medicare would cover the hospital costs, but VA would 
pay physicians' costs for those veterans without Part B 
coverage. CBO estimates that those costs would average about 
$1,000 for the small fraction of veterans who lack Part B 
coverage.
    The costs of the subsequent hospital stay would raise the 
annual bill to VA under this provision by about $195 million 
(also in 2000 dollars).

       TABLE 3. ESTIMATED CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 1076, AS ORDERED REPORTED
                                    [By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   1999       2000       2001       2002       2003       2004
----------------------------------------------------------------------------------------------------------------
                                             VETERANS' MEDICAL CARE
Spending Under Current Law:
    Estimated Authorization Level1,2..........     17,862     17,862     17,862     17,862     17,862     17,862
    Estimated Outlays.........................     17,609     17,958     17,975     17,782     17,751     17,751
Proposed Changes--Reimbursement for Emergency
 Care:
    Estimated Authorization Level.............          0         90        270        380        390        400
    Estimated Outlays.........................          0         80        250        360        380        400
Services for Homeless Veterans:
    Estimated Authorization Level.............          0         50         50         15         32         43
    Estimated Outlays.........................          0         45         50         19         31         42
Medical Expenses for Alaskan Veterans:
    Estimated Authorization Level.............      (\3\)          3          0          0          0          0
    Estimated Outlays.........................      (\3\)          3      (\3\)          0          0          0
Subtotal--Proposed Changes:
    Estimated Authorization Level.............      (\3\)        143        320        395        422        443
    Estimated Outlays.........................      (\3\)        128        300        379        411        442
Spending Under S. 1076:
    Estimated Authorization Level \1\.........     17,862     18,005     18,182     18,257     18,284     18,305
    Estimated Outlays.........................     17,609     18,086     18,275     18,161     18,162     18,193

                                       CONSTRUCTION OF MEDICAL FACILITIES
Spending Under Current Law:
    Budget Authority..........................        142          0          0          0          0          0
    Estimated Outlays.........................        255        244        194        131         80         52
Proposed Changes:
    Authorization Level.......................          0        213          0          0          0          0
    Estimated Outlays.........................          0          9         57         69         51         19
Spending Under S. 1076:
    Authorization Level \1\...................        142        213          0          0          0          0
    Estimated Outlays.........................        255        253        251        200        131         71

                                       REINTEGRATION OF HOMELESS VETERANS
Spending Under Current Law:
    Budget Authority..........................          3          0          0          0          0          0
    Estimated Outlays.........................          2          3          1          0          0          0
Proposed Changes:
    Authorization Level.......................          0         10         10          0          0          0
    Estimated Outlays.........................          0          1          7          9          3          0
Spending Under S. 1076:
    Authorization Level \1\...................          3         10         10          0          0          0
    Estimated Outlays.........................          2          4          8          9          3          0

                                             TOTAL PROPOSED CHANGES
        Estimated Authorization Level \4\.....        (3)        366        330        395        422        443
        Estimated Outlays \4\.................        (3)        138        364        457        465        461
----------------------------------------------------------------------------------------------------------------
\1\ The figure shown for 1999 is the amount appropriated for that year.
\2\ The estimate assumes that funding under current law will remain at the level appropriated for 1999 without
  adjustment for inflation. If funding over the 2000-2004 period is adjusted for inflation, the base amounts
  would increase by about $600 million annually, but the cost of the proposed changes would remain as shown.
\3\ Less than $500,000.
\4\ This table excludes the budgetary impact of sections 101 and 132, which CBO cannot fully estimate.

    Services for Homeless Veterans. Section 122 would authorize 
$50 million for fiscal years 2000 and 2001 for grants and 
operating expenses under the Homeless Veterans Comprehensive 
Service Programs Act. That act allowed VA to share in the costs 
of establishing facilities for homeless veterans and to make 
contributions toward subsequent operating costs. The authorized 
amount would cover new grants and operating expenses stemming 
from past grants.
    Based on current costs of the program, CBO estimates that 
$34 million of the $100 million authorized for 2000-2001 would 
be spent for operating expenses. The remaining $66 million 
would be used overtwo years for grants to subsidize the 
creation of about 6,600 new beds for homeless veterans. To subsidize 
the operational costs of the additional units, CBO estimates that VA 
would need about $90 million through 2004 and $327 million through 
2009. The total cost of the provision, including the explicit 
authorizations for 2000 and 2001, would be about $427 million over the 
2000-2009 period.
    Medical Expenses of Alaskan Veterans. Section 137 would 
require VA to keep its current rates for reimbursing the 
medical expenses of Alaskan veterans for one year. Under 
current law, in August 1999 VA plans to change its 
reimbursement rates from its present fee-for-service payment 
schedule to the Participating Physician Fee Schedule used by 
the Medicare program. The bill would also require VA to report 
on its proposal to change reimbursement rates. Based on 
information from VA on medical expenses and reimbursements for 
1998, CBO estimates this provision would cost less than 
$500,000 in 1999 and approximately $3 million in 2000.
    Construction of Medical Facilities. Section 141 would 
authorize appropriations of $213.1 million to complete three 
projects that are specified in the bill and to continue certain 
projects authorized under current law.
    Reintegration of Homeless Veterans. Section 302 would 
authorize appropriations of $10 million annually for fiscal 
years 2000 and 2001 for a program to reintegrate homeless 
veterans. Funding for the program was $3 million in fiscal year 
1999. CBO estimates that outlays would follow historical 
spending patterns, assuming appropriation of the authorized 
amounts.
    Mental Health Services. Section 132 would require VA to 
enhance its programs of specialized mental health services, 
especially for veterans suffering from post traumatic stress 
disorder (PTSD) and substance abuse disorders. VA currently 
provides inpatient and outpatient services for both disorders 
and spends almost $110 million on veterans with PTSD and 
approximately $412 million on substance abuse treatment 
programs. Under the bill, VA could establish additional 
outpatient and residential treatment facilities, offer new 
services, and enhance services in areas with unmet need. CBO 
cannot provide a specific estimate because the language allows 
VA considerable flexibility, but expects the annual cost of 
this provision would be in the tens of millions of dollars.
    Other Provisions. Section 101 would expand the adult day 
health care program by removing the requirement that veterans 
must have had a prior hospital, nursing home, or domiciliary 
stay. VA currently provides adult day health care to over 1,100 
veterans a day at an annual cost of roughly $30 million.
    On balance, CBO believes that this provision would raise 
VA's costs for this program, but it cannot provide a specific 
estimate. The higher costs would stem from a greater number of 
eligible veterans, but the budgetary impact of the provision 
could also include reductions in costs for hospital, nursing 
home, and domiciliary stays that would not be necessary for a 
veteran to be eligible for the program.
    Section 133 would allow VA to treat military personnel on 
active duty for alcohol or drug abuse provided that the 
Department of Defense (DoD) reimburses VA for the cost. Under 
current law, VA can only provide treatment to individuals 
during the last month of their enlistment period and treats 
fewer than 1,000 individuals each year under this program. CBO 
expects that the net budgetary impact on both agencies would be 
insignificant.
    Section 136 would require VA and DoD to report to Congress 
on the cooperation by both agencies in procuring 
pharmaceuticals and medical supplies. CBO expects this 
provision would cost less than $500,000.

Pay-As-You-Go Considerations

    Section 252 of the Balanced Budget and Emergency Deficit 
Control Act sets up pay-as-you-go procedures for legislation 
affecting direct spending or receipts. The net changes in 
direct spending 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
                                                                 ---------------------------------------------------------------------------------------
                                                                   1999    2000    2001    2002    2003    2004    2005    2006    2007    2008    2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays..............................................       0      66      75      87      78      79      87      82      77      84      86
Changes in receipts.............................................                                       Not applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------


Intergovernmental and Private-Sector Impact

    S. 1076 contains no intergovernmental or private-sector 
mandates as defined in UMRA and would impose no costs on the 
budgets of state, local, or tribal governments.

Previous CBO Estimate

    CBO prepared estimates for two bills that contain 
provisions that are similar or identical to provisions in S. 
1076. On June 28, 1999, CBO prepared a cost estimate for H.R. 
2116, which contained provisions on emergency care and Homeless 
Veterans Comprehensive Service Programs comparable to sections 
131 and 122, respectively, ofS. 1076. On June 29, 1999, CBO 
prepared a cost estimate for H.R. 2280, which contained provisions that 
would affect spouses of former POWs, the American Battle Monuments 
Commission, and the reintegration of homeless veterans. Those 
provisions correspond to section 204, title II, and section 302, 
respectively, of S. 1076. In some cases, the cost estimates for 
corresponding provisions are the same because the provisions are 
identical or not sufficiently different to change estimated costs. In 
other cases, the estimates differ because the provisions are 
substantially different.
    Estimate Prepared By: Federal Costs: Housing and Medical 
Programs: Sunita D'Monte; Medical Care for Homeless Veterans: 
Sarah T. Jennings; Income Security: Michael A. Miller; 
Construction of Medical Facilities: Matthew A. Martin; Homeless 
Veterans' Reintegration Program: Christi Hawley Sadoti; Impact 
on State, Local, and Tribal Governments: Susan Sieg; Impact on 
the Private Sector: Rachel Schmidt.
    Estimate Approved By: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      REGULATORY IMPACT STATEMENT

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

                 TABULATION OF VOTES CAST IN COMMITTEE

    In compliance with paragraph 7 of rule XXVI of the Standing 
Rules of the Senate, the following is a tabulation of votes 
cast in person or by proxy by members of the Committee on 
Veterans' Affairs at its June 23, 1999, meeting. On that date, 
the Committee, by unanimous voice vote, ordered S. 695, as 
amended, reported favorably to the Senate.

                             Agency Report

    On January 29, 1999, VA Under Secretary for Health, Kenneth 
W. Kizer, M.D., M.P.H., and Under Secretary of Defense 
(Personnel and Readiness) Rudy De Leon appeared before the 
Committee and submitted testimony on the findings and 
recommendations of the Commission on Servicemembers and 
Veterans Transition Commission. On May 20, 1999, the Honorable 
Togo D. West, Jr., Secretary of Veterans Affairs, and the 
Honorable Patrick T. Henry, Assistant Secretary of the Army for 
Manpower and Reserve Affairs, appeared before the Committee and 
submitted testimony on, among other things, certain provisions 
of S. 1076. Excerpts from these statements are reprinted below:

   Statement of Kenneth W. Kizer, M.D., M.P.H., Under Secretary for 
    Health, Department of Veterans Affairs, Before the Committee on 
            Veterans' Affairs, U.S. Senate, January 29, 1999

    Mr. Chairman, the healthcare recommendations of the 
Congressional Commission on Servicemembers and Veterans 
Transition Assistance (Commission) arise from its stated themes 
of improving access to healthcare for transitioning 
servicemembers and their families and increasing the cost-
effectiveness of the healthcare systems of the Department of 
Defense (DoD) and VA. An overarching implicit theme is the 
desire to ``incentivize'' the two healthcare systems to work 
more closely together. Recommendations to combine congressional 
appropriations and oversight for DoD and VA healthcare systems, 
as well as budget review at OMB are included, as well as a 
recommendation for a joint policy staff serving both DoD and 
VA, and a recommendation for a common information technology 
system. These recommendations require significant analysis and 
consultation with the DoD before formal Administration views 
can be offered.
    The Commission's report represents a thoughtful analysis, 
and its recommendations should prove useful in shaping the 
future of both healthcare systems. It is important, however, to 
acknowledge that VHA and DoD Health Affairs have already moved 
toward significant collaboration in recent years. In June 1997, 
DoD Health Affairs joined VHA in a formal effort to address 
common issues jointly through the VA/DoD Executive Council 
(Council). The Council, which meets approximately monthly, is 
co-chaired by myself and DoD's Assistant Secretary of Defense 
(Health Affairs). The Council has already embraced the concept 
of advancing the partnership between DoD and VA that is an 
important underpinning to the Commission's healthcare 
recommendation. This progress is demonstrated by ongoing 
initiatives of the Council, including the Government Computer-
Based Patient Record (G-CPR), Specialized Treatment System/
Centers of Excellence, development of a common discharge 
physical, development of a Cost Reimbursement Methodology and 
joint approaches to purchasing of pharmaceuticals and medical/
surgical supplies. These concrete initiatives are in many of 
the same areas that the Commission has highlighted for their 
recommendations. At the moment, the VA and DoD are jointly 
pursuing the following initiatives:
           Military and Veterans Health Coordinating 
        Board;
           Specialized Treatment System/Centers of 
        Excellence (In this area, DoD continues to ask that VA 
        compete with the private healthcare industry.);
           Public communication;
           Cost reimbursement;
           Information management and technology (G-
        CPR, technical architecture, DoD Blood Program, and Y2K 
        biomedical preparation);
           Joint purchase of pharmaceuticals and 
        medical/surgical supplies;
           Clinical guidelines;
           Patient safety;
           Laboratory/pathology/ancillary care 
        services;
           Standardization of disability discharge 
        examinations;
           POW Coordinating Group;
           VA/DoD joint partnering study;
           Review of laws and policies to identify 
        impediments to VA/DoD cooperation;
           Joint congressional interactions;
           Medical technology assessment;
           Joint survey of populations served; and
           TRICARE participation.
    The Commission's major healthcare recommendations involve 
facilitating a closer partnership between DoD and VA healthcare 
organizations. To expand partnering, one recommendation 
suggests coordinated eligibility criteria for DoD and VA 
healthcare system beneficiaries so that care could be sought by 
military personnel or veterans from either system's facilities 
with provision for reimbursement for services provided, as 
appropriate. Other recommendations suggest needs for 
integration of DoD and VA clinical, management financial and 
cost accounting systems to include joint procurements where 
feasible. A final recommendation proposes coordination of DoD 
and VA medical research.

           *       *       *       *       *       *       *

    While the Commission presents business practices as a 
separate category of recommendations, they are really special 
cases of the theme of expanded DOD/VA partnership. This is also 
an area where many of the VA/DoD Executive Council initiatives 
have already begun work. Information technology, cost 
accounting, and joint procurement initiatives are in various 
stages of development and implementation.
    To facilitate joint purchasing objectives, the VA/DoD 
Executive Council has created a Federal Pharmacy Executive 
Steering Group. Other negotiations brokered by the VA/DoD 
Executive Council include a draft agreement between DoD and VA 
on integration of some DoD and VA prime vendor contract pricing 
for medical/surgical items. Beyond purchasing per se, the 
Federal Pharmacy Executive Steering Group created by the VA/DoD 
Executive Council is also exploring joint formulary issues and 
has already formed a list of what could become a core 
formulary.
    Mr. Chairman, we intend to continue our joint efforts with 
DoD to find ways to enhance the effectiveness of both health 
care programs, and we look forward to working with you and 
other Members of Congress as you consider the Commission's 
report.
    Mr. Chairman, you also requested that I address certain 
funding and legislative issues. Before commenting further, I 
would note that the President's Budget is scheduled for release 
on February 1 and, as you know, by convention I am not allowed 
to discuss the funding requests or other initiatives that are 
included prior to that date. However, I can tell you that the 
current major sources of non-appropriated funding for veteran's 
health care are from patient copayments and recoveries from 
third party sources for VA care. Substantially all of these 
funds are deposited in ``no year'' accounts and are retained at 
the VISN level. This offers VISNs needed flexibility in 
planning the expenditure of funds over a multi-year timeframe. 
We have initiatives under way to enhance our cost recovery 
efforts that we believe will produce a moderate increase in 
these funds in FY's 1999 and 2000.
    This concludes my statement. I would be pleased to respond 
to your questions.

 Statement of Rudy De Leon, under Secretary of Defense, (Personnel and 
 Readiness), Before The Committee on Veterans' Affairs, United States 
  Senate, ``Report of Congressional Commission on Servicemembers and 
           Veterans Transition Assistance'', January 29, 1999

    Mr. Chairman and members of the Committee, it is a 
privilege to appear before you to discuss the report of the 
Commission on Servicemembers and Veterans Transition 
Assistance. I am accompanied today by Dr. Sue Bailey, the 
Assistant Secretary of Defense for Health Affairs, and by Mr. 
Frank Rush, Acting Assistant Secretary of Defense for Force 
Management Policy.
    We would like to take this opportunity to thank Senator 
Dole for urging the creation of this Commission, Mr. Principi 
for chairing it, and the commissioners and their staff for 
engaging in two years of intensive work that produced over 100 
recommendations addressing 31 specific issues.
    The Commission, at the outset of its report, recognized two 
challenges: the challenge of addressing veterans' needs in 
transitioning to civilian life as well as a second challenge 
the Military Services face in recruiting and retaining the 
highest quality individuals to serve. To address this second 
challenge, the Administration is proposing important pay and 
retirement improvements to ensure that the men and women of our 
armed forces are compensated fairly for their outstanding 
performance and dedicated service to our nation. We believe 
these pay and retirement improvements will enhance recruiting 
and retention, and we welcome today's dialogue on ways we can 
improve our efforts with respect to veterans making the 
transition to civilian life.
    During the coming months, we will review the report in 
detail so that, in the spring, the Secretary of Defense, in 
consultation with the Secretaries of Veterans Affairs and 
Labor, can submit to the Congress his comments on the 
Commission's recommendations. These recommendations fall 
principally into three areas: education, employment and 
training, and health care--the areas the Commission found of 
most concern to the servicemembers and veterans interviewed 
during the Commission's work.

           *       *       *       *       *       *       *

    The Commission's recommendations in the area of health care 
will require close review by both the Defense Department and 
the Department of Veterans Affairs, which both operate high-
quality health care systems. The Commission suggested 
fundamental changes in the relationship between the two health 
care systems and a consolidation of certain health care 
functions. The proposals include coordinated budgeting and 
funding within the Executive Branch and Congress; a joint 
Defense/VA planning and policy staff; joint procurement of 
information technology and cost accounting systems; and the 
establishment of a single acquisition center for the 
procurement of all pharmaceuticals, medical and surgical 
supplies, and equipment.

           *       *       *       *       *       *       *

    While we need to study the Commission's recommendations in 
more detail, we can say unequivocally now that we agree with 
the assessment of the Commission that our servicemembers and 
veterans ``represent a unique and invaluable human resource for 
America's society and economy'' and that our nation has an 
obligation to provide them ``with the means to take advantage 
of the opportunities protected and preserved through their 
service.'' These words echo those we have used in testimony to 
this and other Congressional committees throughout the years. 
We will be pleased to study the Commission's recommendations, 
especially in light of the obligation that we owe the veterans 
of the armed forces who have served their country honorably and 
well.
    Again, in closing, we thank the Commission for its hard 
work and insight and this Committee for its continued interest 
in and commitment to the men and women who serve and have 
served in the armed forces.
                                ------                                


 Statement of Togo D. West, Jr., Secretary of Veterans Affairs, Before 
 the Committee on Veterans' Affairs, United States Senate, May 20, 1999

    Good afternoon, Mr. Chairman and Members of the Committee.
    It is a pleasure for me to appear before you to provide our 
Department's views on the various proposals that comprise 
today's agenda. These include S. 555 and S. 695, which deal 
with education and burial benefits, respectively, and S. 940, 
an Administration bill you introduced on our behalf which we 
view as critical to our having an organizational structure 
needed to accomplish VA's mission as we enter the next 
millennium. You also asked that we testify on the provisions of 
a draft omnibus Committee bill you plan to introduce.
    Mr. Chairman, as we have already indicated, we will not be 
able today to address a number of the provisions of the draft 
Committee bill since we only recently received the legislative 
language for those provisions. However, I want to assure you 
that VA, even now, is reviewing and evaluating the entire draft 
bill and we will provide you our official views on it at the 
earliest possible date.
    Having said that, I hasten to note also that, of the wide 
range of proposals contained in the draft bill of interest to 
veterans and VA, we are prepared to discuss certain areas in 
which we, at least conceptually, have an official position.

           *       *       *       *       *       *       *

Omnibus Draft Bill
    Turning now to the draft Committee bill, I want to provide 
the following comments on selected provisions that I will 
identify by their associated section numbers and headings as 
they appear in the draft summary we were furnished.

           *       *       *       *       *       *       *

Section 302. In-home respite care services
    This proposal would permit VA to furnish respite care to 
eligible veterans in their homes. VA is supportive of this 
concept, which is consistent with recommendations made by the 
Federal Advisory Committee on the Future of Long-Term Care. 
Issues of cost, however, remain to be resolved.
Section 311. Disposal of Department of Veterans Affairs real property
    Section 311 of the draft bill would authorize a 5-year 
pilot program under which the Secretary of Veterans Affairs 
could dispose of VA real property by transfer, sale or exchange 
and retain the proceeds for veterans' programs. This authority 
would be independent of the disposal authorities in sections 
202 and 203 of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. Sec. Sec. 483, 484). Section 311 also 
would authorize an initial appropriation of $10 million to 
capitalize the Capital Asset Fund established by the 
legislation.
    The President's budget for Fiscal Year 2000 called for a 
Capital Asset Fund into which would be deposited the receipts 
from the disposal of property VA no longer needs to carry out 
its mission. A number of questions have arisen regarding the 
specific form such legislation should take, which are being 
actively considered within the Administration. When those 
discussions have been completed, we will be in a position to 
comment on the Committee proposal.
Section 331. Treatment and services for drug or alcohol dependency
    Congress has over the years consistently encouraged VA and 
the Department of Defense (DoD) to enter into agreements to 
share health care resources, subject to reimbursement. One 
resource VA could share with DoD is its specialized drug and 
alcohol abuse and dependence treatment programs. VA's excellent 
programs have a proven track record, and they exist in many 
locations that could benefit the Department of Defense. 
However, restrictions in current law effectively prohibit such 
sharing.
    Existing law provides that DoD may not transfer active duty 
military personnel to VA facilities in order to receive 
treatment for drug and alcohol abuse except during the last 30 
days of their enlistment period or tour of duty. Moreover, the 
transfers must be made pursuant to the provisions of the 
Economy Act. Section 331 would lift the restriction that 
prohibits such transfers unless they are made during the last 
30 days of an individual's enlistment period or tour of duty. 
Your bill continues to require that such transfers be made 
pursuant to an Economy Act agreement.
    VA has submitted to Congress a similar bill that would 
eliminate the 30 day restriction and would also allow VA to 
share its program with DoD at any time under a VA/DoD sharing 
agreement. DoD would reimburse VA for the resources under that 
authority. We favor enactment of our proposed legislation as it 
would provide more flexibility and reduce costs to the 
Government by minimizing duplication and underuse of VA and DoD 
alcohol and drug dependence and abuse treatment resources.
Section 332. Allocation to Department of Veterans Affairs health care 
        facilities of amounts in Medical Care Collections Fund
    VA opposes section 332, which would direct that Medical 
Care Collection Funds be returned to the facilities which 
provided the care rather than to the VISNS.
    It is important that networks retain flexibility to 
appropriately direct expenditures of all available resources, 
including these funds, wherever they are most needed.
Section 334. Report on coordination of procurement of pharmaceuticals 
        and medical supplies by the Department of Veterans Affairs and 
        the Department of Defense
    Also before you today is section 334 of the draft bill that 
would require DOD and VA to submit a report to Congress on 
current cooperation in pharmaceuticals and medical supplies 
procurement, and on programs to increase cooperation. 
Significant progress is being made in these regards, and we 
would be pleased to report on the status of our efforts.
Section 341. Authorization of major medical facility projects
    Section 341 would, for the most part, authorize VA 
construction projects as requested by the Department in 
conformance with the Veteran's Health Care Eligibility Act of 
1996, Public Law 104-262. That act requires that construction 
projects be ranked according to priority of merit.
    The proposed Lebanon VA Medical Center project has not been 
through that process. With respect to the remodeling and 
environmental improvements at the Fargo VA Medical Center, this 
project was ranked 6th on a list of seven construction 
projects.
    As set forth in the FY 2000 President's budget, we request 
that Congress authorize $38,900,000 for four major facility 
projects and $2,178,500 for two major facility lease programs 
for Fiscal Year 2000.
    The Kansas City Veterans Affairs Medical Center (``VAMC'') 
provides tertiary care for the veterans enrolled in primary 
care in the western portion of the Heartland Network, which 
includes the Kansas City, Wichita, and eastern Kansas Medical 
Centers. The Department of Veterans Affairs (``VA'') requests 
authorization of $13,000,000 to construct a new surgical suite 
and post-anesthesia care unit at the VAMC, located in Kansas 
City, Missouri. This project will correct deficiencies 
identified in a 1995 Joint Commission on Accreditation of 
Healthcare Organization survey related to congested space, 
patient privacy and infection control.
    The Murfreesboro VAMC is the primary site for specialized 
and long term mental health services supporting the Mid-South 
VA Health Care Network medical centers. The Murfreesboro VAMC 
has recently implemented a mental health system that will 
include a schizophrenia treatment program, a sustained 
treatment and rehabilitation program, a psychiatric evaluation 
and treatment program and an intermediate psychiatric program. 
VA requests authorization of $14,000,000 to upgrade psychiatric 
nursing units to provide an improved patient privacy 
environment. Key aspects of the construction project include 
the reduction in the number of beds on each ward, improved 
managed care due to bed reduction, restructuring of the 
physical space and patient privacy.
    VA is proposing to demolish thirty-nine buildings in 
Leavenworth, Kansas and to transfer the land made available 
through demolition to the National Cemetery Administration at 
no cost. This land will be used to improve the delivery service 
capability of the national cemetery. This will provide for 
approximately 36 years of burials for deceased veterans and 
their dependents. VA requests authorization of $11,900,000 to 
develop the national cemetery gravesites.
    The no-cost acquisition of Naval training center property 
located in Orlando, Florida, provides the VA an opportunity to 
provide accessible care to critically underserved veterans in 
the East Central Florida area. VA requests authorization of 
$2,400,000 in previously appropriated funds from fiscal year 
1995 for a 60-bed domiciliary at the Orlando Naval Training 
Center, located in Orlando, Florida. The completed domiciliary 
will provide counseling and support space, outpatient mental 
health space, and handicapped accessible bathing facilities for 
outpatient psychiatric and substance abuse treatment patients 
requiring residential care or transitional housing to veterans 
in the East Central Florida area.
    Finally, we are requesting funding to lease two medical 
facilities. Maintaining the lease for the outpatient clinic 
located in Lubbock, Texas will contribute immensely to VA's 
goal of providing high quality, timely and compassionate 
primary care and social services to veterans. The clinic 
provides a full range of primary and limited specialty care. 
The specialty care includes surgery, neurology, mental health, 
ophthalmology, dental, orthopedics, substance abuse, and 
women's health. VA requests $1,112,000 to lease the outpatient 
clinic in Lubbock, Texas. The lease provides approximately 
36,000 occupiable square feet for the clinic. Approval of this 
lease will provide authority for up to 20 years of leasing. 
Current projections indicate that the useful life of this 
clinic will extend well beyond the year 2020.
    The lease of the research building located in San Diego, 
California, provides the acquisition of approximately 20,920 of 
occupiable square feet for biomedical research. The space 
includes laboratories, casework, hoods, incubators, animal 
facility resources with special space designed for transgenic 
and immune-compromised mice, cold rooms, a core cell facility, 
offices and conference rooms. The research programs include 
Parkinson's Disease, Immunology, Hypertension, Memory, Diabetes 
and AIDS. VA requests $1,066,500 to lease the research building 
in San Diego, California. Approval of this lease will provide 
authority for up to 20 years of leasing.
Section 401. Payment rate of certain burial benefits for certain 
        Filipino veterans
    Section 401 would authorize VA to provide burial and plot 
allowance benefits to certain individuals who served in the 
Commonwealth Army of the Philippines and who, at the time of 
death, were receiving disability compensation from VA or could 
have been eligible for pension had their Commonwealth Army 
service been considered active service in the United States 
Armed Forces. Eligibility for these benefits would be limited 
to those individuals who, at the time of death, were United 
States citizens residing in the United States. It would 
equalize the benefit rates paid to former Philippine Army 
personnel and U.S. veterans residing in the United States.
    The President's Fiscal Year 2000 Budget contains a proposal 
to provide for payment of, or calculation of entitlement to, 
compensation and DIC benefits without regard to current $0.50-
on-the-dollar limitations in the case of certain Filipinos who 
reside in the United States. Section 107(a) and (b) of title 
38, United States Code, currently provides that benefit 
payments based on service of veterans of the Philippine 
Commonwealth Army, including members of recognized guerrilla 
units, and the so-called New Philippine Scouts shall be made at 
a rate of $0.50 for each dollar authorized and that, where 
annual income is a factor in entitlement to benefits, the 
dollar limitations in the law specifying such annual income 
shall apply at a rate of $0.50 for each dollar. Persons who 
served in the Commonwealth Army, recognized guerrilla forces, 
and the New Philippine Scouts, and their survivors, are 
currently entitled to benefits under chapters 11 (disability 
compensation) and 13 (except for section 1312(a)) (DIC) of 
title 38. Service in the Commonwealth Army and recognized 
guerilla units also provides a basis for entitlement to burial 
benefits under chapter 23 of title 38.
    The Administration has proposed elimination of the $.50-on-
the-dollar limitations for compensation and DIC for 
beneficiaries residing in the United States in recognition of 
the fact that Filipino beneficiaries residing in the United 
States face expenses comparable to those of United States 
veterans. While the Administration's proposal only applies to 
compensation and DIC benefits, the draft bill would only apply 
to burial benefits. Preliminary scoring of this provision 
indicates this would cost approximately $2 million dollars for 
Fiscal Year 1999 and $8 million over the period FY 2000-2004.
Section 402. Extension of authority to maintain a regional office in 
        the Republic of the Philippines
    Section 402 of the draft bill would extend our authority 
under section 315(b) of title 38, United States Code, to 
operate a regional office in the Republic of the Philippines 
until December 31, 2004. Under current law, our authority to 
operate this office will expire on December 31, 1999. This 
authority has been extended periodically through the years. The 
most recent extension, pursuant to Public Law 103-446, followed 
issuance in July 1993 of a report by the General Accounting 
Office (GAO/HRD-93-96) which concluded that a premature closing 
of the Manila regional office could be costly and recommended 
that it be maintained for an indefinite period until VA can 
demonstrate that ``(1) it can maintain proper internal controls 
of benefit payments if the office is closed and its functions 
moved to the United States, (2) closure would be cost effective 
notwithstanding the possible higher administrative costs in the 
United States, and (3) VA can maintain adequate services to 
beneficiaries from the United States.''
    More recently, a joint review team comprised of 
representatives from the Veterans Benefits Administration and 
the Veterans Health Administration which assessed VA operations 
in the Philippines in September 1997 recommended that this 
authority be extended for several more years.
    We believe that operating a regional office in the 
Philippines is the most cost-effective means of administering 
VA programs for beneficiaries residing there. VA has performed 
computations of the cost associated with transferring the 
Manila regional-office operations to alternative sites. We have 
determined that continuing to operate the Manila office appears 
to be significantly less costly than moving its operations to 
San Diego, California, the next least expensive site. We 
estimate that for fiscal year 2000 the net additional payroll 
costs of performing the Manila regional office functions would 
be over $650,000.
    It is also particularly important for VA to have an on-site 
presence in Manila to prevent fraud. United States Embassy 
officials in Manila believe that VA's commitment of resources 
to fraud prevention results in a savings to American taxpayers 
which exceed the cost of VA's operations in the Philippines.
    If VA were to close the Manila regional office, veterans 
assistance activities in the Philippines would still be needed. 
A Federal Benefits Unit attached to the Department of State 
would have to be established. Under an arrangement with the 
Department of State for operation of such a unit, VA would have 
only limited control of the program from both a cost and 
service-quality standpoint. Because a Federal Benefits Unit 
would only assume responsibility for information dissemination 
and assistance and not benefit processing, there could be no 
assurance that the extensive fraud-prevention activities 
currently being performed by the regional office would 
continue.
    As our computations indicate, continued operation of a 
regional office in Manila appears to be cost effective even if 
the important benefit of fraud prevention is not taken into 
account. However, the fraud-prevention benefit provides another 
significant reason for maintaining the office. Accordingly, we 
fully support this provision.
Section 403. Extension of Advisory Committee on Minority Veterans
    This section would provide a 4-year extension of the 
Advisory Committee on Minority Veterans until December 31, 
2004. The information guidance and recommendations of this 
Committee continues to be indispensable to VA's mission. VA, 
therefore, strongly supports extending this Committee.
Section 404. Repeal of limitation on payments of benefits to 
        incompetent institutionalized veterans
    Section 404 of the draft bill would repeal subsections (b) 
and (c) of section 5503 of title 38, United States Code. 
Section 5503(b) has, for many years, required VA to suspend the 
payment of certain benefits, including disability compensation 
and pension, to certain incompetent veterans without dependents 
while those veterans are being provided hospital treatment or 
institutional or domiciliary care by the government when the 
veteran's estate equals or exceeds $1,500. The suspension 
continues until the estate is reduced to $500. The ``$1,500 
rule,'' as it has come to be known, was enacted largely to 
prevent the accumulation of large estates comprised of VA 
benefits that would be inherited by persons who had no original 
entitlement to benefits during the veteran's lifetime.
    We take no position today on the merits of this proposal 
because we have not had an adequate opportunity to consider its 
costs or other implications.

                       TITLE V--MEMORIAL AFFAIRS

        Subtitle A--Arlington National Cemetery (Secs. 501-503)

    Subtitle A of title V of the draft bill, the ``Arlington 
National Cemetery Burial and Inurnment Eligibility Act,'' would 
set forth in statute the eligibility requirements for burial or 
inurnment in Arlington National Cemetery. VA defers to the 
views of the Department of the Army with respect to the merits 
of these provisions.

           Subtitle B--World War II Memorial (Secs. 511-514)

    Subtitle B of title V of the draft bill, the ``World War II 
Memorial Completion Act,'' would authorize the American Battle 
Monuments Commission (ABMC) to use ``special borrowing 
authority'' to assure timely completion of the memorial and to 
use, register, license, and defend trademarks, copyrights, 
etc., in connection with fund raising for that purpose.
    The FY 2000 Budget proposed continuation of private 
contributions as the best approach to completing the World War 
II Memorial. The Administration opposes ``special borrowing 
authority'' as transition funding because it would undercut 
solicitation of private contributions which would undermine 
rather than expedite the completion of the World War II 
Memorial. The Administration, however, strongly supports the 
extension of the authority to establish the Memorial.
    Mr. Chairman, we would be pleased to work with the 
Committee as it further develops its omnibus benefits bill.

           *       *       *       *       *       *       *


  Statement by Mr. Patrick T. Henry, Assistant Secretary of the Army, 
     (Manpower and Reserve Affairs) and Mr. John C. Metzler, Jr., 
    Superintendent, Arlington National Cemetery, Before the Senate 
              Committee on Veterans' Affairs, May 20, 1999

    Thank you, Mr. Chairman, I am glad to be here to discuss 
the pending legislation regarding eligibility criteria for 
burial at Arlington National Cemetery (ANC). The Secretary of 
the Army has designated me in my capacity as the Assistant 
Secretary of the Army for Manpower and Reserve Affairs (ASA 
(M&RA)) as the individual responsible for oversight of burial 
policy at Arlington. Seated next to me is Mr. John C. Metzler, 
Jr., the Superintendent of Arlington National Cemetery, who is 
also available to answer any questions you may have.
    Arlington National Cemetery is America's most prominent 
national cemetery and serves as a shrine honoring the men and 
women who have served in the Armed Forces and those Americans 
who have made extraordinary contributions to the nation. It is 
a visible reflection of America's appreciation for those 
individuals whose acts and accomplishments reflect the highest 
service to the country.
    Since its founding in 1864, the cemetery has functioned 
primarily as a military burial ground. Over the years, the 
symbolic significance of Arlington National Cemetery has 
evolved. The cemetery has become recognized as the Nation's 
foremost national memorial to its military members and is the 
final resting place of Presidents and other leading public 
figures. It has also become the site of major memorial events 
and ceremonies, as well as a significant attraction for 
visitors to the Washington area. We are here today to outline 
for the Committee our effort to enhance the regulations that 
govern eligibility criteria for burial in Arlington, and to 
provide our views on pending legislation pertaining to the 
same. As you know, rules governing burial in Arlington are 
included in title 32 of the Code of Federal Regulations. As a 
result of last year's hearing in the House of Representatives 
on this matter, we are in the process of revising the 
regulations that govern burial policy. The revised regulations, 
like pending legislation, will continue the practice of 
allowing active members of the Armed Forces, retired members of 
the Armed Forces, highly-decorated veterans, former prisoners 
of war, and certain veterans discharged due to disability, to 
be buried in Arlington.
    In addition, the revised regulations are similar to pending 
legislation in that the regulations identify those categories 
of persons who may be considered for burial in the cemetery 
based on their relationship to an eligible veteran. In the 
past, exceptions were required to allow close relatives and 
former spouses burial in the same gravesite as an eligible 
veteran. In the past 10 years, these types of exceptions have 
constituted 76 percent of those granted. We agree that these 
individuals should be provided burial consideration, and not be 
viewed as an exception. We do believe, however, that the 
Superintendent should have broader discretionary authority for 
other close relatives, same grave situations as outlined in 
current regulations. Additionally, any legislation should 
continue to honor, at the discretion of the Superintendent, 
reservations made in writing, before the one-gravesite-per-
family policy was established, for gravesites adjoining those 
of next of kin previously interred.
    Our revised regulations are similar to pending legislation 
in that they follow the current policy of allowing burial in 
Arlington for former members of the Armed Forces who choose to 
continue their service to the country and attain high 
Legislative, Judicial and Executive offices. This includes 
those in an elective office of the United States Government 
such as the Vice President, United States Senators, and Members 
of the United States House of Representatives; appointed 
officials, which include the Chief Justice and Associate 
Justices of the Supreme Court of the United States; and the 
heads of Executive Departments. Proposed legislation differs 
from current policy in that it excludes currently eligible 
ambassadors at our largest and most important overseas 
missions, some government officials at level I, and all level 
II executives.
    If there must be legislation addressing the eligibility for 
burial in Arlington, we believe that there should always be the 
opportunity for individuals who have made extraordinary public 
contributions to be considered for burial at Arlington, and for 
an exception to be granted, if appropriate. We strongly support 
the inclusion of language allowing the discretion to grant 
exceptions to allow for burial of individuals whose acts, 
services, or contributions, on behalf of the Armed Forces or 
the Nation, are extraordinary and substantially similar to the 
acts, services, or contributions made by the individuals who 
are entitled to burial. We believe that this authority 
appropriately rests with the President, through his designee, 
the Secretary of the Army. Arlington should be preserved as a 
national shrine honoring the men and women who have served in 
the Armed Forces and a limited number of exceptional Americans 
who have made or will make extraordinary public contributions, 
the vast majority of which are veterans of our Armed Forces.
    To keep the public and the Congress informed of exceptions 
that are granted, we currently require a public disclosure form 
be signed by each requestor and, with each approval, we notify 
the appropriate Congressional oversight committees. We believe 
that current procedures for handling exception requests are 
highly effective, due to the fact that decisions concerning 
burials are time-sensitive, extremely emotional, and require 
prompt action. We believe that any expansion of current 
requirements for staffing and consultation would inhibit a 
timely response to a grieving family.
    Additionally, we believe that current guidelines for 
inurnment in the columbarium as outlined in 32 CFR 553.15a and 
current regulations appropriately govern eligibility. There is 
more than adequate space in the existing and planned columbaria 
to accommodate those eligible under current inurnment policy 
for the foreseeable future.
    While we agree with the intent in the pending legislation 
regarding the terms ``prisoner of war,'' ``active duty,'' 
``armed forces,'' and ``foreign and national security 
services,'' we recommend expansion of the definition and 
explanation of these terms in the legislation to better manage 
burial and/or inurnment entitlements. Additionally, as written, 
the definitions in pending legislation pertain only to section 
2412. Also, we support an effective date of January 1, 2000, 
for the register of buried individuals as described in pending 
legislation.
    In closing, I would like to emphasize that the Secretary of 
the Army takes very seriously his responsibility to administer 
and to uphold the sanctity of Arlington National Cemetery as we 
pay final tribute to men and women who have served our country 
with distinction. In this regard, the Army has recently 
completed a master plan, which is designed to ensure that 
Arlington will remain active as the Nation's foremost military 
cemetery. This plan requires a review of the eligibility 
standards every five years to determine what standards are 
appropriate given land availability. The plan also identifies 
fourteen parcels of land that are located in close proximity to 
the cemetery and that could be used for future burials. We 
intend to examine those parcels that, if made available, would 
extend the life of the cemetery. These parcels include 
contiguous land sites that are to be made available when they 
are no longer needed for military purposes and include the Navy 
Annex and a portion of Fort Myer. We solicit your support for 
this initiative. Funds are included in the President's budget 
for fiscal years 1999-2003 to prepare concept plans to develop 
those parcels of land owned by the Federal Government when they 
become excess to government needs in the near future. 
Acquisition of this property will allow for continued operation 
of the cemetery through the twenty-first century.
    I appreciate very much the opportunity to be here, Mr. 
Chairman. Mr. Metzler and I would be pleased to answer any 
questions you may have.


                            additional views


    The Committee Bill is an omnibus measure which seeks to 
make valuable changes to a number of important veterans' 
programs. In my view, however, it falls short in two critical 
areas.
    First, and most importantly, it does not advance the 
Department of Veterans Affairs in the area of long-term care. 
Second, I have concerns about the way in which the Committee 
has determined which VA major construction projects to 
authorize.
    Let me present my concerns.
Long-Term Care
    There is no doubt that demand for long-term care--for 
veterans and nonveterans alike--is increasing throughout the 
country. In the Department of Veterans Affairs, however, we 
face an even more pressing demand.
    The numbers are staggering. About 34 percent of the total 
veteran population is 65 years or older, compared with about 13 
percent of the total United States population. In the year 
2000, the number of veterans aged 65 or older will peak at 9.3 
million.
    Because VA has already faced considerable demand for long-
term care, it has become a leader in this field. Older veterans 
are leading richer lives because of VA's innovations in the 
area of long-term care. However, according to the Report of the 
Federal Advisory Committee on the Future of VA Long-Term Care, 
despite VA's high quality and long tradition, ``VA long-term 
care is marginalized and unevenly funded.''
    On March 15, 1999, as the Chairman and I wrote in a letter 
to the Budget Committee containing the Committee's views on 
VA's budget for FY 2000, ``The health care issue that VA must 
face over the intermediate term--indeed, the health care issue 
that the Nation must face over the next decade--is the need for 
long-term care among the aging World War II generation. WWII 
veterans saved Western civilization. We cannot turn our backs 
on them now.''
    Congress has delayed far too long in encouraging the VA in 
the area of long-term care. For several years, this Committee 
has contemplated what to do about the long-term care needs of 
veterans. Unfortunately, the measure reported out of this 
Committee at its June 23, 1999, meeting fails to adequately 
address the problem.
    The Committee legislation contains two meaningful 
provisions that will benefit a relatively small number of 
veterans. I had hoped that the Committee would go just a bit 
further to respond to the long-term care needs of our veterans. 
That is why I offered a long-term care amendment at the June 
23, 1999 Committee meeting which included various provisions 
based on the ``Veterans' Long-Term Care Enhancement Act of 
1999.''
    Providing long-term care to all veterans who need it and 
want it is my ultimate wish. While the amendment I offered is 
only one step toward determining what VA should be doing to 
meet veterans' needs for long-term care, it is an important 
step in that regard.
    There are three key elements of the proposal. First, it 
clarifies that long-term care is more than just nursing home 
care. Specifically, the provision would add ``noninstitutional 
extended care services''--such as adult day health care and 
hospice care--to the definition of ``medical services,'' 
thereby removing any doubt about VA's authority to offer such 
services.
    Second, the amendment would add authority for VA to furnish 
assisted living services, including to the spouses of veterans, 
within the confines of two demonstration sites. VA already 
furnishes a form of assisted living services through its 
domiciliary care program and the community residential care 
programs, but the amendment would allow VA to offer this type 
of care to older veterans. Currently, VA is directly prohibited 
from financing assisted living care for veterans.
    During the Committee markup, some members argued against 
the assisted living provisions, predicated on the fact that we 
don't know enough about assisted living. I agree. We need to 
learn more about how VA would utilize authority for such care, 
hence the proposed amendment would have tested the idea in two 
pilot sites. Still, this small test was not approved by the 
full Committee.
    The Report of the Federal Advisory Committee on the Future 
of VA Long-Term Care specifically mentions that while many 
state programs are moving in the direction of assisted living--
to cut costs and to provide the most appropriate level of 
care--VA cannot do so.
    The Advisory Committee went on to recommend authorizing VA 
to allow for the payment of assisted living care. Likewise, the 
VA has indicated that they will initiate a request for new 
authority. Why wait? This is a small effort, but one which will 
be vitally important as we seek ways to care for elderly 
veterans.
    Under the third facet of the proposal, VA would carry out a 
series of pilot programs which would help all of us find the 
best way for VA to meet veterans' long-term care needs--either 
directly, through cooperative arrangements with community 
providers, or indirectly, by purchasing services from non-VA 
providers. This pilot would be intended to supplement VA's 
existing long-term care efforts.
    I firmly believe that for VA's expertise to be of greatest 
use to others, it needs both to better capture what it has done 
and to develop new learning that would apply to other health 
care entities. A key purpose of the pilot programs would be to 
test various approaches to meeting the long-term care needs of 
eligible veterans, both to develop approaches that could be 
expanded across VA, as well as to demonstrate to others outside 
of VA the effectiveness and impact of various approaches to 
long-term care.
    Each element of the pilot program would establish and carry 
out a comprehensive long-term care program, with a full array 
of services, ranging from inpatient long-term care to 
comprehensive noninstitutional services.
    The VA long-term care pilot program would include specific 
data collection on matters such as cost effectiveness, quality 
of health care services provided, enrollee and health care 
provider satisfaction, and the ability of participants to carry 
out basic activities of daily living.
    VA would gain more precise information on exactly which 
services to offer, how best to coordinate those services, and 
on the relative cost and effectiveness of various services. 
From there, we would have the rationale to move forward with 
more sweeping legislation.
    When S. 1076 is considered in the Senate, I will seek 
consideration of my amendment de novo.
Major Construction
    Construction is another area where S. 1076 falls short.
    I am specifically concerned that the Committee is 
authorizing medical facility projects that are neither in the 
VA's budget request nor even on its list of priority major 
medical construction projects. To appear on either of these 
formal lists, a project must have been vetted through the 
Department's prioritization process.
    VA employs an in-depth planning methodology to prioritize 
major medical construction projects which are forwarded from 
the field. VA has taken a good deal of time to ensure that this 
process is objective and assures that selected projects will be 
tied closely to the Department's goals and objectives. This 
methodology has been validated by outside consultants and 
incorporates best practices from the public and private 
sectors. It also conforms to the guidance of the Office of 
Management and Budget. Circumventing this process does not make 
sense in this era of highly constrained budgets.
    The Committee bill authorizes construction projects in 
Kansas City, MO; Fargo, ND; and Lebanon, PA. Kansas City is 
included in the VA's budget request; both Kansas City and Fargo 
are contained on VA's fiscal year 2000 Priority Major Medical 
Construction Project Report.
    This year, we face an incredibly restrictive budget 
situation. In that climate, I am troubled that the Committee is 
authorizing projects that have not been vetted through the VA 
capital investment process. VA spent a good deal of time and 
effort in refining how they go about prioritizing projects. We 
should not second-guess the VA process. There are construction 
projects that were authorized by the Committee last year to 
which funds have not yet been appropriated.
    Whatever the merits may or may not be of nonpriority 
projects, the process that is in place to make these decisions 
should not be overturned by the Committee without extraordinary 
showing of out-of-order need, which in my judgment is lacking 
in this situation.
    The Committee rejected an amendment that would have struck 
section 141 of S. 1076, as amended, and would instead authorize 
VA Major Medical Facility Projects Construction in the order 
and for the amounts specified in the VA's fiscal year 2000 
Priority Major Medical Construction Project Report. These 
projects that have not been previously authorized are: Kansas 
City, MO; Murfreesboro, TN; Atlanta, GA; Fargo, ND; and San 
Diego, CA. Of these, the Administration request limited the 
priority list to Kansas City and Murfreesboro.
                                            John D. Rockefeller IV.

    changes in existing law made by the committee bill, as reported

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

                      TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *


                          PART III--EMPLOYEES

           *       *       *       *       *       *       *


Subpart B--Employment And Retention

           *       *       *       *       *       *       *


           CHAPTER 33--EXAMINATION, SELECTION, AND PLACEMENT


Subchapter I--Examination, Certification, and Appointment

           *       *       *       *       *       *       *



Sec. 3304. Competitive service; examinations

    (a) * * *

           *       *       *       *       *       *       *

    (f)(1) * * *
    (2) If selected, a preference eligible or veteran described 
in paragraph (1) shall acquire competitive status and shall 
receive a career or career-conditional appointment, as 
appropriate.
    [(2)] (3) This subsection shall not be construed to confer 
an entitlement to veterans' preference that is not otherwise 
required by law.
    [(3)] (4) The area of consideration for all merit promotion 
announcements which include consideration of individuals of the 
Federal workforce shall indicate that preference eligibles and 
veterans who have been separated from the armed forces under 
honorable conditions after 3 years or more of active service 
are eligible to apply. The announcements shall be publicized in 
accordance with section 3327.
    [(4) The Office of Personnel Management shall establish an 
appointing authority to appoint such preference eligibles and 
veterans.]

           *       *       *       *       *       *       *


                      TITLE 36, UNITED STATES CODE

Subtitle I--Patriotic and National Observances and Ceremonies

           *       *       *       *       *       *       *


     PART B--UNITED STATES GOVERNMENT ORGANIZATIONS INVOLVED WITH 
                       OBSERVANCES AND CEREMONIES

            CHAPTER 21--AMERICAN BATTLE MONUMENTS COMMISSION

Sec.
2101 * * *
     * * * * * * *
2113. World War II memorial in the District of Columbia.
     * * * * * * *

Sec. 2103. Administrative

    (a) * * *

           *       *       *       *       *       *       *

    [(e) Authority to Receive State, Local, or Private 
Amounts.--The Commission may receive State, local, or private 
amounts to carry out this chapter. The Commission shall deposit 
the amounts with the Treasurer of the United States. The 
Treasurer shall keep the amounts in separate accounts and shall 
disburse the amounts on vouchers approved by the Chairman.]
    (e) Solicitation and Receipt of Contributions._(1) The 
Commission may solicit and receive funds and in-kind donations 
and gifts from any State, municipal, or private source to carry 
out the purposes of this chapter. The Commission shall deposit 
such funds in a separate account in the Treasury. Funds from 
this account shall be disbursed upon vouchers approved by the 
Chairman of the Commission as well as by a Federal official 
authorized to sign payment vouchers.
  (2) The Commission shall establish written guidelines setting 
forth the criteria to be used in determining whether the 
acceptance of funds and in-kind donations and gifts under 
paragraph (1) would--
          (A) reflect unfavorably on the ability of the 
        Commission, or any employee of the Commission, to carry 
        out the responsibilities or official duties of the 
        Commission in a fair and objective manner; or
          (B) compromise the integrity or the appearance of the 
        integrity of the programs of the Commission or any 
        official involved in those programs.

           *       *       *       *       *       *       *

    (k) * * *
  (l) Intellectual Property and Related Items.--(1) The 
Commission may--
          (A) adopt, use, register, and license trademarks, 
        service marks, and other marks;
          (B) obtain, use, register, and license the use of 
        copyrights consistent with section 105 of title 17;
          (C) obtain, use, and license patents; and
          (D) accept gifts of marks, copyrights, patents and 
        licenses for use by the Commission.
  (2) The Commission may grant exclusive and nonexclusive 
licenses in connection with any mark, copyright, patent, or 
license for the use of such mark, copyright or patent, except 
to the extent the grant of such license by the Commission would 
be contrary to any contract or license by which the use of such 
mark, copyright or patent was obtained.
  (3) The Commission may enforce any mark, copyright, or patent 
by an action in the district courts under any law providing for 
the protection of such marks, copyrights, or patents.
  (4) The Attorney General shall furnish the Commission with 
such legal representation as the Commission may require under 
paragraph (3). The Secretary of Defense shall provide 
representation for the Commission in administrative proceedings 
before the Patent and Trademark Office and Copyright Office.
  (5) Section 203 of title 17 shall not apply to any copyright 
transferred in any manner to the Commission.

           *       *       *       *       *       *       *


Sec. 2113. World War II memorial in the District of Columbia

  (a) Definitions.--In this section:
          (1) The term ``World War II memorial'' means the 
        memorial authorized by Public Law 103-32 (107 Stat. 90) 
        to be established by the American Battle Monuments 
        Commission on Federal land in the District of Columbia 
        or its environs to honor members of the Armed Forces 
        who served in World War II and to commemorate the 
        participation of the United States in that war.
          (2) The term ``Commission'' means the American Battle 
        Monuments Commission.
          (3) The term ``memorial fund'' means the fund created 
        by subsection (c).
    (b) Solicitation and Acceptance of Contributions.--
Consistent with the authority of the Commission under section 
2103(e) of this title, the Commission shall solicit and accept 
contributions for the World War II memorial.
    (c) Creation of Memorial Fund.--(1) There is hereby created 
in the Treasury a fund for the World War II memorial, which 
shall consist of the following:
          (A) Amounts deposited, and interest and proceeds 
        credited, under paragraph (2).
          (B) Obligations obtained under paragraph (3).
          (C) The amount of surcharges paid to the Commission 
        for the World War II memorial under the World War II 
        50th Anniversary Commemorative Coins Act.
          (D) Amounts borrowed using the authority provided 
        under subsection (e).
          (E) Any funds received by the Commission under 
        section 2103(l) of this title in exchange for use of, 
        or the right to use, any mark, copyright or patent.
    (2) The Chairman of the Commission shall deposit in the 
memorial fund the amounts accepted as contributions under 
subsection (b). The Secretary of the Treasury shall credit to 
the memorial fund the interest on, and the proceeds from sale 
or redemption of, obligations held in the memorial fund.
    (3) The Secretary of the Treasury shall invest any portion 
of the memorial fund that, as determined by the Chairman of the 
Commission, is not required to meet current expenses. Each 
investment shall be made in an interest bearing obligation of 
the United States or an obligation guaranteed as to principal 
and interest by the United States that, as determined by the 
Chairman of the Commission, has a maturity suitable for the 
memorial fund.
    (d) Use of Memorial Fund.--The memorial fund shall be 
available to the Commission for--
          (1) the expenses of establishing the World War II 
        memorial, including the maintenance and preservation 
        amount provided for in section 8(b) of the 
        Commemorative Works Act (40 U.S.C. 1008(b));
          (2) such other expenses, other than routine 
        maintenance, with respect to the World War II memorial 
        as the Commission considers warranted; and
          (3) to secure, obtain, register, enforce, protect, 
        and license any mark, copyright or patent that is owned 
        by, assigned to, or licensed to the Commission under 
        section 2103(l) of this title to aid or facilitate the 
        construction of the World War II memorial.
    (e) Special Borrowing Authority.--(1) To assure that 
groundbreaking, construction, and dedication of the World War 
II memorial are completed on a timely basis, the Commission may 
borrow money from the Treasury of the United States in such 
amounts as the Commission considers necessary, but not to 
exceed a total of $65,000,000. Borrowed amounts shall bear 
interest at a rate determined by the Secretary of the Treasury, 
taking into consideration the average market yield on 
outstanding marketable obligations of the United States of 
comparable maturities during the month preceding the month in 
which the obligations of the Commission are issued. The 
interest payments on such obligations may be deferred with the 
approval of the Secretary of the Treasury, but any interest 
payment so deferred shall also bear interest.
    (2) The borrowing of money by the Commission under 
paragraph (1) shall be subject to such maturities, terms, and 
conditions as may be agreed upon by the Commission and the 
Secretary of the Treasury, except that the maturities may not 
exceed 20 years and such borrowings may be redeemable at the 
option of the Commission before maturity.
    (3) The obligations of the Commission shall be issued in 
amounts and at prices approved by the Secretary of the 
Treasury. The authority of the Commission to issue obligations 
under this subsection shall remain available without fiscal 
year limitation. The Secretary of the Treasury shall purchase 
any obligations of the Commission to be issued under this 
subsection, and for such purpose the Secretary of the Treasury 
may use as a public debt transaction of the United States the 
proceeds from the sale of any securities issued under chapter 
31 of title 31. The purposes for which securities may be issued 
under such chapter are extended to include any purchase of the 
Commission's obligations under this subsection.
    (4) Repayment of the interest and principal on any funds 
borrowed by the Commission under paragraph (1) shall be made 
from amounts in the memorial fund. The Commission may not use 
for such purpose any funds appropriated for any other 
activities of the Commission.
    (f) Treatment of Borrowing Authority.--In determining 
whether the Commission has sufficient funds to complete 
construction of the World War II memorial, as required by 
section 8 of the Commemorative Works Act (40 U.S.C. 1008), the 
Secretary of the Interior shall consider the funds that the 
Commission may borrow from the Treasury under subsection (e) as 
funds available to complete construction of the memorial, 
whether or not the Commission has actually exercised the 
authority to borrow such funds.
    (g) Voluntary Services.--(1) Notwithstanding section 1342 
of title 31, the Commission may accept from any person 
voluntary servicesto be provided in furtherance of the fund-
raising activities of the Commission relating to the World War II 
memorial.
    (2) A person providing voluntary services under this 
subsection shall be considered to be a Federal employee for 
purposes of chapter 81 of title 5, relating to compensation for 
work-related injuries, and chapter 171 of title 28, relating to 
tort claims. A volunteer who is not otherwise employed by the 
Federal Government shall not be considered to be a Federal 
employee for any other purpose by reason of the provision of 
such voluntary service, except that any volunteers given 
responsibility for the handling of funds or the carrying out of 
a Federal function are subject to the conflict of interest laws 
contained in chapter 11 of title 18, and the administrative 
standards of conduct contained in part 2635 of title 5, Code of 
Federal Regulations.
    (3) The Commission may provide for reimbursement of 
incidental expenses which are incurred by a person providing 
voluntary services under this subsection. The Commission shall 
determine which expenses are eligible for reimbursement under 
this paragraph.
    (4) Nothing in this subsection shall be construed to 
require Federal employees to work without compensation or to 
allow the use of volunteer services to displace or replace 
Federal employees.
    (h) Treatment of Certain Contracts.--A contract entered 
into by the Commission for the design or construction of the 
World War II memorial is not a funding agreement as that term 
is defined in section 201 of title 35.
    (i) Extension of Authority To Establish Memorial.--
Notwithstanding section 10 of the Commemorative Works Act (40 
U.S.C. 1010), the legislative authorization for the 
construction of the World War II memorial contained in Public 
Law 103-32 (107 Stat. 90) shall not expire until December 31, 
2005.

           *       *       *       *       *       *       *


                      TITLE 38, UNITED STATES CODE

                       PART I--GENERAL PROVISIONS

                           CHAPTER 1--GENERAL

           *       *       *       *       *       *       *



Sec. 107. Certain service deemed not to be active service

    (a) * * *
          (1) * * *

           *       *       *       *       *       *       *

          (3) chapters 11, 13 (except section 1312(a)), and 23 
        of this title. [Payments] Subject to subsection (c), 
        payments under such chapters shall be made at a rate of 
        $0.50 for each dollar authorized, and where annual 
        income is a factor in entitlement to benefits, the 
        dollar limitations in the law specifying such annual 
        income shall apply at a rate of $0.50 for each dollar. 
        Any payments made before February 18, 1946, to any such 
        member under such laws conferring rights, benefits, or 
        privileges shall not be deemed to have been invalid by 
        reason of the circumstance that such member's service 
        was not service in the Armed Forces or any component 
        thereof within the meaning of any such law.
    (b) * * *

           *       *       *       *       *       *       *

    (c)(1) In the case of an individual described in paragraph 
(2), payments under section 2302 or 2303 of this title by 
reason of subsection (a)(3) shall be made at the rate of $1 for 
each dollar authorized.
    (2) Paragraph (1) applies to any individual whose service 
is described in subsection (a) and who dies after the date of 
the enactment of the Veterans Benefits Act of 1999 if the 
individual, on the individual's date of death--
          (A) is a citizen of the United States;
          (B) is residing in the United States; and
          (C) either--
                  (i) is receiving compensation under chapter 
                11 of this title; or
                  (ii) if such service had been deemed to be 
                active military, naval, or air service, would 
                have been paid pension under section 1521 of 
                this title without denial or discontinuance by 
                reason of section 1522 of this title.

           *       *       *       *       *       *       *


               CHAPTER 3--DEPARTMENT OF VETERANS AFFAIRS

           *       *       *       *       *       *       *



Sec. 305. Under Secretary for Health

    (a)(1) * * *

           *       *       *       *       *       *       *

    [(c) The Under Secretary for Health shall be appointed for 
a period of four years, with reappointment permissible for 
successive like periods. If the President removes the Under 
Secretary for Health before the completion of the term for 
which the Under Secretary for Health was appointed, the 
President shall communicate the reasons for the removal to 
Congress.]
    [(d)] (c)(1) Whenever a vacancy in the position of Under 
Secretary for Health occurs or is anticipated, the Secretary 
shall establish a commission to recommend individuals to the 
President for appointment to the position.
    (2) A commission established under this subsection shall be 
composed of the following members appointed by the Secretary:
          (A) Three persons representing clinical care and 
        medical research and education activities affected by 
        the Veterans Health Administration.
          (B) Two persons representing veterans served by the 
        Veterans Health Administration.
          (C) Two persons who have experience in the management 
        of veterans health services and research programs, or 
        programs of similar content and scope.
          (D) The Deputy Secretary of Veterans Affairs.
          (E) The Chairman of the Special Medical Advisory 
        Group established under section 7312 of this title.
          (F) One person who has held the position of Under 
        Secretary for Health (including service as Chief 
        Medical Director of the Veterans' Administration), if 
        the Secretary determines that it is desirable for such 
        person to be a member of the commission.
    (3) A commission established under this subsection shall 
recommend at least three individuals for appointment to the 
position of Under Secretary for Health. The commission shall 
submit all recommendations to the Secretary. The Secretary 
shall forward the recommendations to the President with any 
comments the Secretary considers appropriate. Thereafter, the 
President may request the commission to recommend additional 
individuals for appointment.
    (4) The Assistant Secretary or Deputy Assistant Secretary 
of Veterans Affairs who performs personnel management and labor 
relations functions shall serve as the executive secretary of a 
commission established under this subsection.

           *       *       *       *       *       *       *


Sec. 306. Under Secretary for Benefits

    (a) * * *

           *       *       *       *       *       *       *

    [(c) The Under Secretary for Benefits shall be appointed 
for a period of four years, with reappointment permissible for 
successive like periods. If the President removes the Under 
Secretary for Benefits before the completion of the term for 
which the Under Secretary for Benefits was appointed, the 
President shall communicate the reasons for the removal to 
Congress.]
    [(d)] (c)(1) Whenever a vacancy in the position of Under 
Secretary for Benefits occurs or is anticipated, the Secretary 
shall establish a commission to recommend individuals to the 
President for appointment to the position.
    (2) A commission established under this subsection shall be 
composed of the following members appointed by the Secretary:
          (A) Three persons representing education and 
        training, real estate, mortgage finance, and related 
        industries, and benefits activities affected by the 
        Veterans Benefits Administration.
          (B) Two persons representing veterans served by the 
        Veterans Benefits Administration.
          (C) Two persons who have experience in the management 
        of veterans benefits programs or programs of similar 
        content and scope.
          (D) The Deputy Secretary of Veterans Affairs.
          (E) The chairman of the Veterans' Advisory Committee 
        on Education formed under section 3692 of this title.
          (F) One person who has held the position of Under 
        Secretary for Benefits (including service as Chief 
        Benefits Director of the Veterans' Administration), if 
        the Secretary determines that it is desirable for such 
        person to be a member of the commission.
    (3) A commission established under this subsection shall 
recommend at least three individuals for appointment to the 
position of Under Secretary for Benefits. The commission shall 
submit all recommendations to the Secretary. The Secretary 
shall forward the recommendations to the President with any 
comments the Secretary considers appropriate. Thereafter, the 
President may request the commission to recommend additional 
individuals for appointment.
    (4) The Assistant Secretary or Deputy Assistant Secretary 
of Veterans Affairs who performs personnel management and labor 
relations functions shall serve as the executive secretary of a 
commission established under this subsection.

           *       *       *       *       *       *       *


Sec. 315. Regional offices

    (a) * * *
    (b) The Secretary may maintain a regional office in the 
Republic of the Philippines until [December 31, 1999] December 
31, 2004.

           *       *       *       *       *       *       *


            CHAPTER 5--AUTHORITY AND DUTIES OF THE SECRETARY

           *       *       *       *       *       *       *



                  Subchapter III--Advisory Committee

           *       *       *       *       *       *       *



Sec. 544. Advisory Committee on Minority Veterans

    (a)(1) * * *

           *       *       *       *       *       *       *

    (e) The Committee shall cease to exist [December 31, 1999] 
December 31, 2004.

           *       *       *       *       *       *       *


                       PART II--GENERAL BENEFITS

           *       *       *       *       *       *       *



CHAPTER 13--DEPENDENCY AND INDEMNITY COMPENSATION FOR SERVICE-CONNECTED 
DEATHS

           *       *       *       *       *       *       *



Subchapter II--Dependency and Indemnity Compensation

           *       *       *       *       *       *       *



Sec. 1318. Benefits for survivors of certain veterans rated totally 
                    disabled at time of death

    (a) * * *
    (b) A deceased veteran referred to in subsection (a) of 
this section is a veteran who dies, not as the result of the 
veteran's own willful misconduct, and who was in receipt of or 
entitled to receive (or but for the receipt of retired or 
retirement pay was entitled to receive) compensation at the 
time of death for a service-connected disability [that either--
] rated totally disabling if--
          (1) the disability was continuously rated totally 
        disabling for a period of 10 or more years immediately 
        preceding death; [or]
          (2) [if so rated for a lesser period, was so rated 
        continuously] the disability was continuously rated 
        totally disabling for a period of not less than five 
        years from the date of such veteran's discharge or 
        other release from active duty; and
          (3) the veteran was a former prisoner of war who died 
        after September 30, 1999, and whose disability was 
        continuously rated totally disabling for a period of 
        one year immediately preceding death.

           *       *       *       *       *       *       *


   CHAPTER 17--HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE


                         Subchapter I--General

Sec.
1701. * * *
          * * * * * * *

Subchapter II--Hospital, Nursing Home, or Domiciliary Care and Medical 
                               Treatment

1710. * * *
          * * * * * * *
1712B. * * *
1712C. Specialized mental health services.
          * * * * * * *

                         Subchapter I--General


Sec. 1701. Definitions

    For the purposes of this chapter--
    (1) * * *

           *       *       *       *       *       *       *

    (6) The term ``medical services'' includes, in addition to 
medical examination, treatment, and rehabilitative services--
          (A)(i) surgical services, dental services and 
        appliances as described in sections 1710 and 1712 of 
        this title, optometric and podiatric services, 
        preventive health services, and (in the case of a 
        person otherwise receiving care or services under this 
        chapter) wheelchairs, artificial limbs, trusses, and 
        similar appliances, special clothing made necessary by 
        the wearing of prosthetic appliances, and such other 
        supplies or services as the Secretary determines to be 
        reasonable and necessary, except that the Secretary may 
        not furnish sensori-neural aids other than in 
        accordance with guidelines which the Secretary shall 
        prescribe, and (ii) travel and incidental expenses 
        pursuant to the provisions of section 111 of this 
        title; [and]
          (B)(i) * * *
          (ii) in the case of an individual who was a recipient 
        of services under subclause (i) of this clause at the 
        time of--
                  (I) * * *
                  (II) the death of the veteran while the 
                veteran was participating in a hospice program 
                (or a similar program) conducted by the 
                Secretary, such counseling services, for a 
                limited period, as the Secretary determines to 
                be reasonable and necessary to assist such 
                individual with the emotional and psychological 
                stress accompanying the veteran's death. For 
                the purposes of this paragraph, a dependent or 
                survivor of a veteran receiving care under the 
                last sentence of section 1713(b) of this title 
                shall be eligible for the same medical services 
                as a veteran[.] ; and
          (C) emergency care, or reimbursement for such care, 
        as described in sections 1703(a)(3) and 1728(a)(2)(E) 
        of this title.
    (7) * * *

           *       *       *       *       *       *       *

    (10) The term ``emergency medical condition'' means a 
medical condition manifesting itself by acute symptoms of 
sufficient severity (including severe pain) such that a prudent 
layperson, who possesses an average knowledge of health and 
medicine, could reasonably expect the absence of immediate 
medical attention to result in--
          (A) placing the health of the individual (or, with 
        respect to a pregnant woman, the health of the woman or 
        her unborn child) in serious jeopardy;
          (B) serious impairment to bodily functions; or
          (C) serious dysfunction of any bodily organ or part.

           *       *       *       *       *       *       *


Sec. 1703. Contracts for hospital care and medical services in non-
                    Department facilities

    (a) When Department facilities are not capable of 
furnishing economical hospital care or medical services because 
of geographical inaccessibility or are not capable of 
furnishing the care or services required, the Secretary, as 
authorized in section 1710 of this title, may contract with 
non-Department facilities in order to furnish any of the 
following:
          (1) * * *

           *       *       *       *       *       *       *

          (3) Hospital care or medical services for the 
        treatment of [medical emergencies which pose a serious 
        threat to the life or health of a veteran] an emergency 
        medical condition of a veteran who is enrolled under 
        section 1705 of this title or who is receiving medical 
        services in a Department facility or nursing home care 
        under section 1720 of this title until such time 
        following the furnishing of care in the non-Department 
        facility as the veteran can be safely transferred to a 
        Department facility.

           *       *       *       *       *       *       *


Sec. 1705. Management of health care: patient enrollment system

    (a) * * *

           *       *       *       *       *       *       *

    (d) The Secretary shall require in a contract under section 
1703(a)(3) of this title, and as a condition of payment under 
section 1728(a)(2) of this title, that payment by the Secretary 
for treatment under such contract, or under such section, of a 
veteran enrolled under this section shall be made only after 
any payment that may be made with respect to such treatment 
under part A or part B of the Medicare program and after any 
payment that may be made with respect to such treatment by a 
third-party insurance provider.

           *       *       *       *       *       *       *


 Subchapter II--Hospital, Nursing Home or Domiciliary Care and Medical 
Treatment

           *       *       *       *       *       *       *



Sec. 1720. Transfers for nursing home care; adult day health care

    (a)(1) * * *

           *       *       *       *       *       *       *

    (f)(1)(A) The Secretary is authorized to furnish adult day 
health care as provided for in this subsection. For the purpose 
only of authorizing the furnishing of such care and specifying 
the terms and conditions under which it may be furnished to 
veterans needing such care--
          (i) references to ``nursing home care'' in 
        [subsections (a) through (d) of this section] 
        subsections (b) through (d) of this section shall be 
        deemed to be references to ``adult day health care''; 
        and
          (ii) * * *

           *       *       *       *       *       *       *


Sec. 1720A. Treatment and rehabilitative services for persons with drug 
                    or alcohol dependency

    (a) * * *

           *       *       *       *       *       *       *

    (c)(1) Any person serving in the active military, naval, or 
air service who is determined by the Secretary concerned to 
have an alcohol or drug dependence or abuse disability [may not 
be transferred] may be transferred to any facility in order for 
the Secretary to furnish care or treatment and rehabilitative 
services for such disability [unless such transfer is during 
the last thirty days of such member's enlistment period or tour 
of duty], in which case such care and services provided to such 
member shall be provided as if such member were a veteran. Any 
transfer of any such member for such care and services shall be 
made pursuant to such terms as may be agreed upon by the 
Secretary concerned and the Secretary, subject to the 
provisions of sections 1535 and 1536 of title 31.
    (2) No person serving in the active military, naval, or air 
service may be transferred pursuant to an agreement made under 
paragraph (1) of this subsection unless such person requests 
such transfer in writing for a specified period of time [during 
the last thirty days of such person's enlistment period or tour 
of duty]. No such person transferred pursuant to such a request 
may be furnished such care and services by the Secretary beyond 
the period of time specified in such request unless such person 
requests in writing an extension for a further specified period 
of time and such request is approved by the Secretary.

Sec. 1720B. Respite care

    (a) * * *
    (b) For the purpose of this section, the term ``respite 
care'' means hospital [or nursing home care], nursing home 
care, or home-based care which--
          (1) * * *
          (2) is furnished in a Department facility or in the 
        home of a veteran on an intermittent basis to a veteran 
        who is suffering from a chronic illness and who resides 
        primarily at home; and
          (3) * * *

           *       *       *       *       *       *       *


Sec. 1712C. Specialized mental health services

    (a) The Secretary shall carry out programs for purposes of 
enhancing the provision of specialized mental health services 
to veterans.
    (b) The programs carried out by the Secretary under 
subsection (a) shall include the following:
          (1) Programs relating to the treatment of Post 
        Traumatic Stress Disorder (PTSD), including programs 
        for--
                  (A) the establishment and operation of 
                additional outpatient and residential treatment 
                facilities for Post Traumatic Stress Disorder 
                in areas that are underserved by existing 
                programs relating to Post Traumatic Stress 
                Disorder, as determined by qualified mental 
                health personnel of the Department who oversee 
                such programs;
                  (B) the provision of services in response to 
                the specific needs of veterans with Post 
                Traumatic Stress Disorder and related 
                disorders, including short-term or long-term 
                care services that combine residential 
                treatment of Post Traumatic Stress Disorder;
                  (C) the provision of Post Traumatic Stress 
                Disorder or dedicated case management services 
                on an outpatient basis; and
                  (D) the enhancement of staffing of existing 
                programs relating to Post Traumatic Stress 
                Disorder which have exceeded the projected 
                workloads for such programs.
          (2) Programs relating to substance use disorders, 
        including programs for--
                  (A) the establishment and operation of 
                additional Department-based or community-based 
                residential treatment facilities;
                  (B) the expansion of the provision of opioid 
                treatment services, including the establishment 
                and operation of additional programs for the 
                provision of opioid treatment services; and
                  (C) the reestablishment or enhancement of 
                substance use disorder services at facilities 
                at which such services have been eliminated or 
                curtailed, with an emphasis on the 
                reestablishment or enhancement of services at 
                facilities where demand for such services is 
                high or which serve large geographic areas.
    (c)(1) The Secretary shall provide for the allocation of 
funds for the programs carried out under this section in a 
centralized manner.
    (2) The allocation of funds for such programs shall--
          (A) be based upon an assessment of the need for funds 
        conducted by qualified mental health personnel of the 
        Department who oversee such programs; and
          (B) emphasize, to the maximum extent practicable, the 
        availability of funds for the programs described in 
        paragraphs (1) and (2) of subsection (b).

           *       *       *       *       *       *       *


   Subchapter III--Miscellaneous Provisions Relating to Hospital and 
Nursing Home Care and Medical Treatment of Veterans

           *       *       *       *       *       *       *



Sec. 1728. Reimbursement of certain medical expenses

    (a) The Secretary may, under such regulations as the 
Secretary shall prescribe, reimburse veterans entitled to 
hospital care or medical services under this chapter for the 
reasonable value of such care or services (including travel and 
incidental expenses under the terms and conditions set forth in 
section 111 of this title), for which such veterans have made 
payment, from sources other than the Department, where--
    (1) * * *
    (2) such care or services were rendered to a veteran in 
need thereof (A) for an adjudicated service-connected 
disability, (B) for a non-service-connected disability 
associated with and held to be aggravating a service-connected 
disability, (C) for any disability of a veteran who has a total 
disability permanent in nature from a service-connected 
disability, [or] (D) for any illness, injury, or dental 
condition in the case of a veteran who (i) is a participant in 
a vocational rehabilitation program (as defined in section 
3101(9) of this title), and (ii) is medically determined to 
have been in need of care or treatment to make possible such 
veteran's entrance into a course of training, or prevent 
interruption of a course of training, or hasten the return to a 
course of training which was interrupted because of such 
illness, injury, or dental condition, or (E) for any emergency 
medical condition of a veteran enrolled under section 1705 of 
this title; and
    (3) * * *

           *       *       *       *       *       *       *


Sec. 1729A. Department of Veterans Affairs Medical Care Collections 
                    Fund

    (a) * * *

           *       *       *       *       *       *       *

    (d)[(1)] Of the total amount recovered or collected by the 
Department during a fiscal year under the provisions of law 
referred to in subsection (b) and made available from the fund, 
the Secretary shall make available to [each designated health 
care region] each Department health care facility of the 
Department an amount that bears the same ratio to the total 
amount so made available as the amount recovered or collected 
by [such region] such facility during that fiscal year under 
such provisions of law bears to such total amount recovered or 
collected during that fiscal year. The Secretary shall make 
available to [each region] each facility the entirety of the 
amount specified to be made available to [such region] such 
facility by the preceding sentence.
    [(2) In this subsection, the term ``designated health care 
regions of the Department'' means the geographic areas 
designated by the Secretary for purposes of the management of, 
and allocation of resources for, health care services provided 
by the Department.]

           *       *       *       *       *       *       *


             CHAPTER 24--NATIONAL CEMETERIES AND MEMORIALS

Sec.
2400. * * *
     * * * * * * *
2412. Arlington National Cemetery: persons eligible for burial.
2413. Arlington National Cemetery: persons eligible for placement in 
          columbarium.
     * * * * * * *

Sec. 2402. Persons eligible for interment in national cemeteries

    Under such regulations as the Secretary may prescribe and 
subject to the provisions of section 6105 of this title, the 
remains of the following persons may be buried in any open 
national cemetery under the control of the National Cemetery 
Administration:
          (1) * * *

           *       *       *       *       *       *       *

            (7) Any person who at the time of death was 
        entitled (or but for age would have been entitled) to 
        retired pay under [chapter 67] chapter 1223 of title 10 
        [or would have been entitled to retired pay under that 
        chapter but for the fact that the person was under 60 
        years of age.].

           *       *       *       *       *       *       *


Sec. 2412. Arlington National Cemetery: persons eligible for burial

    (a) Primary Eligibility.--The remains of the following 
individuals may be buried in Arlington National Cemetery:
          (1) Any member of the Armed Forces who dies while on 
        active duty.
          (2) Any retired member of the Armed Forces and any 
        person who served on active duty and at the time of 
        death was entitled (or but for age would have been 
        entitled) to retired pay under chapter 1223 of title 
        10.
          (3) Any former member of the Armed Forces separated 
        for physical disability before October 1, 1949, who--
                  (A) served on active duty; and
                  (B) would have been eligible for retirement 
                under the provisions of section 1201 of title 
                10 (relating to retirement for disability) had 
                that section been in effect on the date of 
                separation of the member.
          (4) Any former member of the Armed Forces whose last 
        active duty military service terminated honorably and 
        who has been awarded one of the following decorations:
                  (A) Medal of Honor.
                  (B) Distinguished Service Cross, Air Force 
                Cross, or Navy Cross.
                  (C) Distinguished Service Medal.
                  (D) Silver Star.
                  (E) Purple Heart.
          (5) Any former prisoner of war who dies on or after 
        November 30, 1993.
          (6) The President or any former President.
          (7) Any former member of the Armed Forces whose last 
        discharge or separation from active duty was under 
        honorable conditions and who is or was one of the 
        following:
                  (A) Vice President.
                  (B) Member of Congress.
                  (C) Chief Justice or Associate Justice of the 
                Supreme Court.
                  (D) The head of an Executive department (as 
                such departments are listed in section 101 of 
                title 5).
                  (E) An individual who served in the foreign 
                or national security services, if such 
                individual died as a result of a hostile action 
                outside the United States in the course of such 
                service.
          (8) Any individual whose eligibility is authorized in 
        accordance with subsection (b).
  (b) Additional Authorizations of Burial.--(1) In the case of 
a former member of the Armed Forces not otherwise covered by 
subsection (a) whose last discharge or separation from active 
duty was under honorable conditions, if the Secretary of 
Defense makes a determination referred to in paragraph (3) with 
respect to such member, the Secretary of Defense may authorize 
the burial of the remains of such former member in Arlington 
National Cemetery under subsection (a)(8).
  (2) In the case of any individual not otherwise covered by 
subsection (a) or paragraph (1), if the President makes a 
determination referred to in paragraph (3) with respect to such 
individual, the President may authorize the burial of the 
remains of such individual in Arlington National Cemetery under 
subsection (a)(8).
  (3) A determination referred to in paragraph (1) or (2) is a 
determination that the acts, service, or other contributions to 
the Nation of the former member or individual concerned are of 
equal or similarmerit to the acts, service, or other 
contributions to the Nation of any of the persons listed in subsection 
(a).
  (4)(A) In the case of an authorization for burial under this 
subsection, the President or the Secretary of Defense, as the 
case may be, shall submit to the Committees on Veterans' 
Affairs of the Senate and the House of Representatives a report 
on the authorization not later than 72 hours after the 
authorization.
  (B) Each report under subparagraph (A) shall--
          (i) identify the individual authorized for burial; 
        and
          (ii) provide a justification for the authorization 
        for burial.
  (5)(A) In the case of an authorization for burial under this 
subsection, the President or the Secretary of Defense, as the 
case may be, shall publish in the Federal Register a notice of 
the authorization as soon as practicable after the 
authorization.
  (B) Each notice under subparagraph (A) shall--
          (i) identify the individual authorized for burial; 
        and
          (ii) provide a justification for the authorization 
        for burial.
  (c) Eligibility of Family Members.--The remains of the 
following individuals may be buried in Arlington National 
Cemetery:
          (1)(A) Except as provided in subparagraph (B), the 
        spouse, surviving spouse, minor child, and, at the 
        discretion of the Superintendent, unmarried adult child 
        of a person listed in subsection (a), but only if 
        buried in the same gravesite as that person.
          (B) In a case under subparagraph (A) in which the 
        same gravesite may not be used due to insufficient 
        space, a person otherwise eligible under that 
        subparagraph may be interred in a gravesite adjoining 
        the gravesite of the person listed in subsection (a) if 
        space in such adjoining gravesite had been reserved for 
        the burial of such person otherwise eligible under that 
        subparagraph before January 1962.
          (2)(A) The spouse, minor child, and, at the 
        discretion of the Superintendent, unmarried adult child 
        of a member of the Armed Forces on active duty if such 
        spouse, minor child, or unmarried adult child dies 
        while such member is on active duty.
          (B) The individual whose spouse, minor child, and 
        unmarried adult child is eligible under subparagraph 
        (A), but only if buried in the same gravesite as the 
        spouse, minor child, or unmarried adult child.
          (3) The parents of a minor child or unmarried adult 
        child whose remains, based on the eligibility of a 
        parent, are already buried in Arlington National 
        Cemetery, but only if buried in the same gravesite as 
        that minor child or unmarried adult child.
          (4)(A) Subject to subparagraph (B), the surviving 
        spouse, minor child, and, at the discretion of the 
        Superintendent, unmarried adult child of a member of 
        the Armed Forces who was lost, buried at sea, or 
        officially determined to be permanently absent in a 
        status of missing or missing in action.
          (B) A person is not eligible under subparagraph (A) 
        if a memorial to honor the memory of the member is 
        placed in a cemetery in the national cemetery system, 
        unless the memorial is removed. A memorial removed 
        under this subparagraph may be placed, at the 
        discretion of the Superintendent, in Arlington National 
        Cemetery.
          (5) The surviving spouse, minor child, and, at the 
        discretion of the Superintendent, unmarried adult child 
        of a member of the Armed Forces buried in a cemetery 
        under the jurisdiction of the American Battle Monuments 
        Commission.
  (d) Spouses.--For purposes of subsection (c)(1), a surviving 
spouse of a person whose remains are buried in Arlington 
National Cemetery by reason of eligibility under subsection (a) 
who has remarried is eligible for burial in the same gravesite 
of that person. The spouse of the surviving spouse is not 
eligible for burial in such gravesite.
  (e) Disabled Adult Unmarried Children.--In the case of an 
unmarried adult child who is incapable of self-support up to 
the time of death because of a physical or mental condition, 
the child may be buried under subsection (c) without 
requirement for approval by the Superintendent under that 
subsection if the burial is in the same gravesite as the 
gravesite in which the parent, who is eligible for burial under 
subsection (a), has been or will be buried.
  (f) Family Members of Persons Buried in a Group Gravesite.--
In the case of a person eligible for burial under subsection 
(a) who is buried in Arlington National Cemetery as part of a 
group burial, the surviving spouse, minor child, or unmarried 
adult child of the member may not be buried in the group 
gravesite.
  (g) Exclusive Authority for Burial in Arlington National 
Cemetery.--Eligibility for burial of remains in Arlington 
National Cemetery prescribed under this section is the 
exclusive eligibility for such burial.
  (h) Application for Burial.--A request for burial of remains 
of an individual in Arlington National Cemetery made before the 
death of the individual may not be considered by the Secretary 
of the Army, the Secretary of Defense, or any other responsible 
official.
  (i) Register of Buried Individuals.--(1) The Secretary of the 
Army shall maintain a register of each individual buried in 
Arlington National Cemetery and shall make such register 
available to the public.
    (2) With respect to each such individual buried on or after 
January 1, 1998, the register shall include a brief description 
of the basis of eligibility of the individual for burial in 
Arlington National Cemetery.
    (j) Definitions.--For purposes of this section:
          (1) The term ``retired member of the Armed Forces'' 
        means--
                  (A) any member of the Armed Forces on a 
                retired list who served on active duty and who 
                is entitled to retired pay;
                  (B) any member of the Fleet Reserve or Fleet 
                Marine Corps Reserve who served on active duty 
                and who is entitled to retainer pay; and
                  (C) any member of a reserve component of the 
                Armed Forces who has served on active duty and 
                who has received notice from the Secretary 
                concerned under section 12731(d) of title 10 of 
                eligibility for retired pay under chapter 1223 
                of title 10.
          (2) The term ``former member of the Armed Forces'' 
        includes a person whose service is considered active 
        duty service pursuant to a determination of the 
        Secretary of Defense under section 401 of Public Law 
        95-202 (38 U.S.C. 106 note).
          (3) The term ``Superintendent'' means the 
        Superintendent of Arlington National Cemetery.

Sec. 2413. Arlington National Cemetery: persons eligible for placement 
                    in columbarium

    (a) Eligibility.--The cremated remains of the following 
individuals may be placed in the columbarium in Arlington 
National Cemetery:
          (1) A person eligible for burial in Arlington 
        National Cemetery under section 2412 of this title.
          (2)(A) A veteran whose last period of active duty 
        service (other than active duty for training) ended 
        honorably.
          (B) The spouse, surviving spouse, minor child, and, 
        at the discretion of the Superintendent of Arlington 
        National Cemetery, unmarried adult child of such a 
        veteran.
          (b) Spouse.--Section 2412(d) of this title shall 
        apply to a spouse under this section in the same manner 
        as it applies to a spouse under section 2412 of this 
        title.

           *       *       *       *       *       *       *


PART III--READJUSTMENT AND RELATED BENEFITS

           *       *       *       *       *       *       *


              CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS

           *       *       *       *       *       *       *



               Subchapter III--Administrative Provisions

           *       *       *       *       *       *       *



Sec. 3735. Housing assistance for homeless veterans

    (a)(1) * * *

           *       *       *       *       *       *       *

    (c) The Secretary may not enter into agreements under 
subsection (a) after [December 31, 1998] December 31, 2001.

           *       *       *       *       *       *       *


              PART IV--GENERAL ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *


           CHAPTER 55--MINORS, INCOMPETENTS, AND OTHER WARDS

           *       *       *       *       *       *       *



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

    (a)(1)(A) * * *
    [(b)(1)(A) In any case in which a veteran having neither 
spouse nor child is being furnished hospital treatment or 
institutional or domiciliary care without charge or otherwise 
by the United States, or any political subdivision thereof, is 
rated by the Secretary in accordance with regulations as being 
incompetent, and the veteran's estate (excluding the value of 
the veteran's home unless there is no reasonable likelihood 
that the veteran will again reside in such home), from any 
source equals or exceeds $1,500, further payments of pension, 
compensation, or emergency officers' retirement pay shall not 
be made until the estate is reduced to $500.
    [(B) The amount which would be payable but for this 
paragraph shall be paid to the veteran in a lump sum; however, 
no payment of alump sum herein authorized shall be made to the 
veteran until after the expiration of six months following a finding of 
competency and in the event of the veterans' death before payment of 
such lump sum no part thereof shall be payable.
    [(C) The Secretary may waive the discontinuance under this 
paragraph of payments to a veteran with respect to not more 
than 60 days of care of the veteran during any calendar year if 
the Secretary determines that the waiver is necessary in order 
to avoid a hardship for the veteran. Any such waiver shall be 
made pursuant to regulations which the Secretary shall 
prescribe.
    [(2) Where any benefit is discontinued by reason of 
paragraph (1) of this subsection the Secretary may nevertheless 
apportion and pay to the dependent parents of the veteran on 
the basis of need all or any part of the benefit which would 
otherwise be payable to or for such incompetent veteran. 
Paragraph (1) of this subsection shall not prevent the payment, 
out of any remaining amounts discontinued under that paragraph, 
on account of any veteran of so much of the veteran's pension, 
compensation, or retirement pay as equals the amount charged to 
the veteran for the veteran's current care and maintenance in 
the institution in which treatment or care is furnished the 
veteran, but not more than the amount determined by the 
Secretary to be the proper charge as fixed by any applicable 
statute or valid administrative regulation.
    [(3) All or any part of the pension, compensation, or 
retirement pay payable on account of any incompetent veteran 
who is being furnished hospital treatment, institutional or 
domiciliary care may, in the discretion of the Secretary, be 
paid to the chief officer of the institution wherein the 
veteran is being furnished such treatment or care, to be 
properly accounted for by such chief officer and to be used for 
the benefit of the veteran.
    [(c) Any veteran subject to the provisions of subsection 
(b) shall be deemed to be single and without dependents in the 
absence of satisfactory evidence to the contrary. In no event 
shall increased compensation, pension, or retirement pay of 
such veteran be granted for any period more than one year 
before receipt of satisfactory evidence showing such veteran 
has a spouse, child, or dependent parent.]
    [(d)] (b) Notwithstanding any other provision of this 
section or any other provision of law, no reduction shall be 
made in the pension of any veteran for any part of the period 
during which the veteran is furnished hospital treatment, or 
institutional or domiciliary care, for Hansen's disease, by the 
United States or any political subdivision thereof.
    [(e)] (c) Where any veteran in receipt of an aid and 
attendance allowance described in section 1114(r) of this title 
is hospitalized at Government expense, such allowance shall be 
discontinued from the first day of the second calendar month 
which begins after the date of the veteran's admission for such 
hospitalization for so long as such hospitalization continues. 
Any discontinuance required by administrative regulation, 
during hospitalization of a veteran by the Department, of 
increased pension based on need of regular aid and attendance 
or additional compensation based on need of regular aid and 
attendance as described in subsection (l) or (m) of section 
1114 of this title, shall not be effective earlier than the 
first day of the second calendar month which begins after the 
date of the veterans' admission for hospitalization. In case a 
veteran affected by this subsection leaves a hospital against 
medical advice and is thereafter admitted to hospitalization 
within six months from the date of such departure, such 
allowance, increased pension, or additional compensation, as 
the case may be, shall be discontinued from the date of such 
readmission for so long as such hospitalization continues.
    [(f)] (d)(1) For the purposes of this subsection--(A) the 
term ``Medicaid plan'' means a State plan for medical 
assistance referred to in section 1902(a) of the Social 
Security Act (42 U.S.C. 1396a(a)); and (B) the term ``nursing 
facility'' means a nursing facility described in section 1919 
of such Act (42 U.S.C. 1396r), other than a facility that is a 
State home with respect to which the Secretary makes per diem 
payments for nursing home care pursuant to section 1741(a) of 
this title.
    (2) If a veteran having neither spouse nor child is covered 
by a Medicaid plan for services furnished such veteran by a 
nursing facility, no pension in excess of $90 per month shall 
be paid to or for the veteran for any period after the month of 
admission to such nursing facility.
    (3) Notwithstanding any provision of title XIX of the 
Social Security Act, the amount of the payment paid a nursing 
facility pursuant to a Medicaid plan for services furnished a 
veteran may not be reduced by any amount of pension permitted 
to be paid such veteran under paragraph (2) of this subsection.
    (4) A veteran is not liable to the United States for any 
payment of pension in excess of the amount permitted under this 
subsection that is paid to or for the veteran by reason of the 
inability or failure of the Secretary to reduce the veteran's 
pension under this subsection unless such inability or failure 
is the result of a willful concealment by the veteran of 
information necessary to make a reduction in pension under this 
subsection.
    (5) The provisions of this subsection shall apply with 
respect to a surviving spouse having no child in the same 
manner as they apply to a veteran having neither spouse nor 
child.
    (6) The costs of administering this subsection shall be 
paid for from amounts available to the Department of Veterans 
Affairs for the payment of compensation and pension.
    (7) This subsection expires on September 30, 2002.

           *       *       *       *       *       *       *


            PART VI--ACQUISITION AND DISPOSITION OF PROPERTY

           *       *       *       *       *       *       *


           Subchapter V--Enhanced-Use Leases of Real Property

           *       *       *       *       *       *       *



Sec. 8162. Enhanced-use leases

    (a)(1) * * *

           *       *       *       *       *       *       *

    (b)(1) * * *
    (2) The term of an enhanced-use lease [may not exceed--
          (A) 35 years, in the case of a lease involving the 
        construction of a new building or the substantial 
        rehabilitation of an existing building, as determined 
        by the Secretary; or
          (B) 20 years, in the case of a lease not described in 
        subparagraph (A).] may not exceed 55 years.
    (3)(A) * * *

           *       *       *       *       *       *       *

    (4)(A) Any payment by the Secretary for the use of space or 
services by the Department on property that has been leased 
under this subchapter may [only] be made from funds 
appropriated to the Department for the activity that uses the 
space or services. [No other such payment may be made by the 
Secretary to a lessee under an enhanced-use lease unless the 
authority to make the payment is provided in advance in an 
appropriation Act.]
    (B) Any payment by the Secretary in contribution to capital 
activities on property that has been leased under this 
subchapter may be made from amounts appropriated to the 
Department for construction, minor projects.
    (c)(1) * * *

           *       *       *       *       *       *       *


Sec. 8169. Expiration

    The authority of the Secretary to enter into enhanced-use 
leases under this subchapter expires on [December 31, 2001] 
December 31, 2011.

           *       *       *       *       *       *       *

                              ----------                              


      HOMELESS VETERANS COMPREHENSIVE SERVICE PROGRAM ACT OF 1992

           *       *       *       *       *       *       *


SEC. 3. GRANTS

    (a) Authority To Make Grants.--(1) Subject to the 
availability of appropriations provided for under section 12, 
the Secretary of Veterans Affairs, shall make grants to assist 
eligible entities in establishing new programs to furnish, and 
expanding existing programs for furnishing, outreach, 
rehabilitative services, vocational counseling and training, 
and transitional housing assistance to homeless veterans.
    (2) The authority of the Secretary to make grants under 
this section expires on [September 30, 1999] September 30, 
2001.

           *       *       *       *       *       *       *


SEC. 12. AUTHORIZATION OF APPROPRIATIONS

    There are authorized to be appropriated to carry out this 
Act (other than section 8) $48,000,000 for each of the fiscal 
years 1993 through 1997 and $50,000,000 for each of fiscal 
years 2000 and 2001. Nothing in this act shall be construed to 
diminish funds for, continuation of, or expansion of existing 
programs administered by the Secretary of Veterans Affairs to 
serve veterans.
                              ----------                                



                 PERSIAN GULF WAR VETERANS' BENEFITS ACT

           *       *       *       *       *       *       *


SEC. 105. OUTREACH TO PERSIAN GULF VETERANS.

    (a) * * *
    (b) Newsletter--(1) * * *
    (2) The requirement under this subsection for the 
distribution of the newsletter shall terminate on [December 31, 
1999] December 31, 2002.

           *       *       *       *       *       *       *


SEC. 107. OUTREACH TO PERSIAN GULF VETERANS.

    (a) * * *
    (b) Duration of Program.--The program shall be carried out 
during the period beginning on November 1, 1994, and ending on 
[December 31, 1999] December 31, 2002.

           *       *       *       *       *       *       *

                              ----------                              


              STEWART B. McKINNEY HOMELESS ASSISTANCE ACT

           *       *       *       *       *       *       *


SEC. 738. HOMELESS VETERANS' REINTEGRATION PROJECTS.

    (a) * * *

           *       *       *       *       *       *       *

    (e) Authorization of Appropriations.--(1) There are 
authorized to be appropriated to carry out this section the 
following amounts:
          (A) * * *

           *       *       *       *       *       *       *

          (H) $10,000,000 for fiscal year 2000.
          (I) $10,000,000 for fiscal year 2001.
                              ----------                              


               VETERANS PROGRAMS ENHANCEMENT ACT OF 1998

           *       *       *       *       *       *       *


SEC. 703. AUTHORIZATION OF APPROPRIATIONS.

    (a) * * *
    (b) Limitation.--(1) The projects authorized in section 
701(a) may only be carried out using'
          (A) * * *
          (B) funds appropriated for fiscal year 2000 pursuant 
        to the authorization of appropriations in section 
        341(b)(1) of the Veterans Benefits Act of 1999;
          [(B)] (C) funds appropriated for Construction, Major 
        Projects, for a fiscal year before fiscal year 1999 
        that remain available for obligation; and
          [(C)] (D) funds appropriated for Construction, Major 
        Projects, for fiscal year 1999 for a category of 
        activity not specific to a project.
    (2) * * *

           *       *       *       *       *       *       *


                           PUBLIC LAW 103-32

SECTION 1. AUTHORITY TO ESTABLISH MEMORIAL.

    (a) * * *

           *       *       *       *       *       *       *


[SEC. 3. PRIVATE CONTRIBUTIONS.

    [The American Battle Monuments Commission shall solicit and 
accept private contributions for the memorial.

[SEC. 4. FUND IN THE TREASURY FOR THE MEMORIAL.

    [(a) In General.--There is hereby created in the Treasury a 
fund which shall be available to the American Battle Monuments 
Commission for the expenses of establishing the memorial. The 
fund shall consist of--
          [(1) amounts deposited, and interest and proceeds 
        credited, under subsection (b);
          [(2) obligations obtained under subsection (c); and
          [(3) the amount of surcharges paid to the Commission 
        for the memorial under the World War II 50th 
        Anniversary Commemorative Coins Act.
    [(b) Deposits And Credits.--The Chairman of the Commission 
shall deposit in the fund the amounts accepted as contributions 
under section 3. The Secretary of the Treasury shall credit to 
the fund the interest on, and the proceeds from sale or 
redemption of, obligations held in the fund.
    [(c) Obligations.--The Secretary of the Treasury shall 
invest any portion of the fund that, as determined by the 
Chairman of the Commission, is not required to meet current 
expenses. Each investment shall be made in an interest bearing 
obligation of the United States or an obligation guaranteed as 
to principal and interest by the United States that as 
determined by the Chairman of the Commission, has a maturity 
suitable for the fund.
    [(d) Abolition.--Upon the final settlement of the accounts 
of the fund, the Secretary of the Treasury shall submit to the 
Congress a draft of legislation (including technical and 
conforming provisions) recommended by the Secretary for the 
abolition of the fund.

[SEC. 5. DEPOSIT OF EXCESS FUNDS.

    [If, upon payment of all expenses of the establishment of 
the memorial (including the maintenance and preservation amount 
provided for in section 8(b) of the Act referred to in section 
1(b)), or upon expiration of the authority for the under 
section 10(b) of that Act, there remains a balance in the fund 
created by section 4, the Chairman of the American Battle 
Monuments Commission shall transmit the amount of the balance 
to the Secretary of the Treasury for deposit in the account 
provided for in section 8(b)(1) of that Act.]

                                  
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