[Senate Report 106-86]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                                 SENATE
 1st Session                                                     106-86
_______________________________________________________________________

                                     




                 LEGISLATIVE AND OVERSIGHT ACTIVITIES


                   DURING THE 105TH CONGRESS BY THE


                          SENATE COMMITTEE ON


                           VETERANS' AFFAIRS

                               __________

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

                                 of the

                     COMMITTEE ON VETERANS' AFFAIRS

                          UNITED STATES SENATE

                          COMMITTEE ACTIVITIES




                 June 24, 1999.--Ordered to be printed
                            [105th Congress]

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
                           WASHINGTON : 1999

                     COMMITTEE ON VETERANS' AFFAIRS

                 ARLEN SPECTER, Pennsylvania, Chairman

STROM THURMOND, South Carolina       JOHN D. ROCKEFELLER IV, West 
FRANK H. MURKOWSKI, Alaska               Virginia
JAMES M. JEFFORDS, Vermont           BOB GRAHAM, Florida
BEN NIGHTHORSE CAMPBELL, Colorado    DANIEL K. AKAKA, Hawaii
LARRY E. CRAIG, Idaho                PAUL WELLSTONE, Minnesota
Y. TIM HUTCHINSON, Arkansas          PATTY MURRAY, Washington
                   Charles Battaglia, Staff Director
          Jim Gottlieb, Minority Chief Counsel/Staff Director
                                 ------                                
                            [106th Congress]

                     COMMITTEE ON VETERANS' AFFAIRS

                 ARLEN SPECTER, Pennsylvania, Chairman

STROM THURMOND, South Carolina       JOHN D. ROCKEFELLER IV, West 
FRANK H. MURKOWSKI, Alaska               Virginia
JAMES M. JEFFORDS, Vermont           BOB GRAHAM, Florida
BEN NIGHTHORSE CAMPBELL, Colorado    DANIEL K. AKAKA, Hawaii
LARRY E. CRAIG, Idaho                PAUL WELLSTONE, Minnesota
Y. TIM HUTCHINSON, Arkansas          PATTY MURRAY, Washington
                   Charles Battaglia, Staff Director
          Jim Gottlieb, Minority Chief Counsel/Staff Director

                                  (ii)
                            C O N T E N T S

                              ----------                              
I. Introduction
                                                                   Page
      Hearings
        A. First session.........................................     1
        B. Second session........................................     2
      Legislation
        A. First session.........................................     2
        B. Second session........................................     5
    Special oversight activities.................................    10
      Nominations
        A. First session.........................................    13
        B. Second session........................................    13
II. Budget on veterans programs
        A. First session.........................................    13
        B. Second session........................................    18
III. Service-connected compensation and related programs
    A. Overview..................................................    20
      B. First session
        1. Cost-of-living adjustment.............................    21
        2. Codification of previous cost-of-living adjustment....    21
        3. Persian Gulf War veterans.............................    22
        4. Other compensation issues.............................    23
        5. Technical and clarifying amendments...................    24
      C. Second session
        1. Cost-of-living adjustment.............................    25
        2. Persian Gulf War veterans.............................    25
        3. Compensation for tobacco-related disabilities.........    26
        4. Other veterans' compensation issues...................    26
IV. VA Pension programs
    A. Overview..................................................    28
    B. First session.............................................    28
    C. Second session............................................    28
V. Health care
    A. Overview..................................................    29
      B. First session
        1. Persian Gulf War veterans.............................    31
        2. Priority access to VA medical care....................    31
        3. Medical personnel matters.............................    31
        4. Construction authorization and property management....    33
        5. Legislation to extend expiring legal authorities......    34
        6. Technical amendments and corrections..................    35
        7. Other health care legislation.........................    38
      C. Second session
        1. Persian Gulf War veterans.............................    39
        2. Construction authorization and property management....    40
        3. Other medical care and medical administration matters.    41
VI. Readjustment, educational assistance, and vocational 
  rehabilitation benefits
    A. Overview..................................................    43
    B. First session.............................................    44
    C. Second session............................................    45
VII. Employment
    A. Overview..................................................    47
    B. First session.............................................    47
    C. Second session............................................    48
VIII. Home loan guaranty program
    A. Overview..................................................    49
    B. First session.............................................    50
    C. Second session............................................    51
IX. Burial benefits and memorial affairs
    A. Overview..................................................    52
      B. First session
        1. Eligibility for benefits..............................    53
        2. Cemetery administration...............................    54
      C. Second session
        1. Eligibility for benefits..............................    55
        2. Cemetery administration...............................    56
X. Insurance
    A. Overview..................................................    57
    B. First session.............................................    57
    C. Second session............................................    57
XI. Claims adjudication and judicial review
    A. Overview..................................................    58
    B. First session.............................................    58
    C. Second session............................................    59
XII. Miscellaneous
    A. First session.............................................    60
    B. Second session............................................    60
106th Congress                                                   Report
                                 SENATE
 1st Session                                                     106-86

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



 
 LEGISLATIVE AND OVERSIGHT ACTIVITIES DURING THE 105TH CONGRESS BY THE 
                 SENATE COMMITTEE ON VETERANS' AFFAIRS

                                _______
                                

                 June 24, 1999.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

    Pursuant to paragraph 8 of rule XXVI of the Standing Rules 
of the Senate, the Committee on Veterans' Affairs (Committee) 
submits its report on legislative and oversight activities 
during the 105th Congress.

                            I. Introduction


                                Hearings


                            A. FIRST SESSION

    During the First Session of the 105th Congress, the 
Committee held, in the aggregate, 22 days of hearings on 
legislative and oversight matters, on nominations to serve in 
the Department of Veterans Affairs (VA), the Department of 
Labor (DOL), and the United States Court of Veterans Appeals, 
and on the legislative recommendations of veterans service 
organizations (VSOs). The Committee held 12 days of hearings on 
illnesses associated with service in the Persian Gulf War; one 
day of hearings on the Administration's proposed budget for 
veterans programs for fiscal year 1998 and options for 
implementing budget reconciliation instructions; one day of 
hearings on alleged sexual harassment at VA; one day of 
hearings on miscellaneous pending legislation relating to VA 
health care programs and VA compensation, pension, and 
vocational rehabilitation programs, and related matters; one 
day of hearings on services provided to veterans in Hawaii; one 
day of hearings on nominations; and five days of hearings on 
the legislative recommendations of the VSO's.

                           B. SECOND SESSION

    During the Second Session of the 104th Congress, the 
Committee held, in the aggregate, 12 days of hearings on 
legislative and oversight matters, and on VSOs' legislative 
recommendations. The Committee held one day of hearings on 
illnesses associated with service in the Persian Gulf War; two 
days of hearings on compensation issues, one relating to 
compensation for veterans who had become dependent on tobacco 
during service and who later contracted smoking-related 
illnesses, and one relating to veterans who were exposed to 
radiation (including radiogenic medical therapies) during 
service; two days of hearings on health policy issues, one 
relating to quality of care issues and one relating to long-
term care policies; one day of hearings on preferences afforded 
to veterans seeking Federal employment; one day of hearings on 
nominations; and five days of hearings on the legislative 
recommendations of the VSO's.

                              Legislation


                            A. FIRST SESSION

    During the First Session of the 105th Congress, the 
Committee met in open session two times to consider 
legislation, and reported one joint resolution, a related 
concurrent resolution, and nine bills to the Senate.
    The joint resolution, to confer status as an honorary 
veteran of the Armed Forces of the United States on Leslie 
Townes (Bob) Hope was approved by the House of Representatives 
on June 3, 1997, and by the Senate on September 9, 1997, and 
was signed by the President into law as Public Law 105-67 on 
October 30, 1997. A related measure, a concurrent resolution to 
authorize the use of the rotunda of the Capitol for a ceremony 
honoring Leslie Townes (Bob) Hope by conferring upon him the 
status of an honorary veteran of the Armed Forces of the United 
States, was approved by the Senate on October 22, 1997, and by 
the House of Representatives on October 23, 1997.
    From the nine bills reported during the First Session, 
provisions derived from six, with modifications, were enacted 
as three public laws. These public laws are itemized and 
summarized below:
    1. The ``Veterans'' Compensation Rate Amendments of 1997'' 
(Public Law 105-98), signed November 19, 1997, and derived from 
H.R. 2367, as amended and passed by the House on October 31, 
1997. The ``Veterans'' Compensation Rate Amendments of 1997'' 
authorized VA to make cost-of-living adjustments in the rates 
of disability compensation for veterans with service-connected 
disabilities and the rates of dependency and indemnification 
compensation (DIC) for survivors of such veterans, effective 
December 1, 1997.
    2. An act to amend title 38, United States Code, to allow 
revision of veterans benefits decisions based on clear and 
unmistakable error (Public Law 105-111), signed November 21, 
1997, and derived from H.R. 1090 (passed by the House on April 
16, 1997) and S. 464 (reported by the Committee on November 13, 
1997).
    3. The ``Veterans'' Benefits Act of 1997'' (Public Law 105-
114), signed November 21, 1997, and derived from S. 714, S. 
801, S. 986, and S. 999 (as ordered reported by the Committee 
on October 7, 1997), and from H.R. 1092 (passed by the House on 
April 16, 1997), H.R. 1703, H.R. 2206, and H.R. 2571 (passed by 
the House on October 6, 1997). The ``Veterans'' Benefits Act of 
1997'' specifies as follows:

Title I--Equal Employment Opportunity Process in the Department of 
        Veterans Affairs

    A. That VA will establish a new VA employment 
discrimination complaint resolution system;
    B. That VA will establish a quasi-independent VA Office of 
Employment Discrimination Complaint Adjudication to make final 
agency decisions on substantive equal employment opportunity 
issues; and
    C. That VA will contract with a private entity to assess 
VA's discrimination complaint resolution system.

Title II--Extension and Improvement of Authorities

    A. That Persian Gulf veterans will be deemed eligible for 
VA health care by virtue of having a condition associated with 
service in the Persian Gulf;
    B. That VA will establish a grant program under which up to 
ten VA facilities will establish demonstration projects to 
improve care to Persian Gulf War veterans with undiagnosed or 
difficult to diagnose conditions;
    C. That VA's authority to provide direct loans to Native 
Americans to purchase, construct, renovate, or refinance homes 
on trust land will be extended through December 31, 2001;
    D. That VA will establish outreach and reporting 
requirements in support of the Native American Veteran Housing 
Loan Program;
    E. That authorities relating to the provision of services 
to homeless veterans will be codified into a single section of 
title 38;
    F. That VA authority to sell, lease, or donate VA 
properties to nonprofit organizations or to any State or 
political subdivision of States to assist homeless veterans to 
acquire shelter will be extended through December 31, 1999;
    G. That VA authority to provide grant support to public and 
private nonprofit entities to establish programs to assist 
homeless veterans will be extended through September 30, 1999;
    H. That DOL authority to operate the Homeless Veterans 
Reintegration Project (HVRP), which provides grants to 
community- based organizations focusing on returning homeless 
veterans to the workforce, will be extended through December 
31, 1999;
    I. That appropriations of $10,000,000 per year to the HVRP 
will be authorized;
    J. That the scope of required VA reporting on assistance to 
homeless veterans will be broadened;
    K. That VA authority to enter into ``enhanced use leases'' 
will be extended through December 31, 2001;
    L. That limitations on the number of ``enhanced use 
leases'' which VA may enter into will be stricken;
    M. That VA authority to provide noninstitutional 
alternatives to nursing home care (such as hospital-based home 
care, adult day health care, and community residential care) 
will be made permanent;
    N. That VA's authority to operate a Health Professional 
Scholarship Program will be extended through December 31, 1998;
    O. That VA will report within six months on the 
effectiveness of its Health Professional Scholarship Program 
and on alternatives for recruiting and retaining health 
professionals;
    P. That VA will develop a national policy on breast cancer 
screening; and
    Q. That the President will report on preparations to 
respond to medical emergencies arising from the terrorist use 
of weapons of mass destruction.

Title III--Major Medical Facility Projects Construction Authorization

    A. That VA will be authorized to proceed with a seismic 
correction construction project at the Department of Veterans 
Affairs medical center (VAMC) in Memphis, Tennessee;
    B. That VA will be authorized to proceed with a seismic 
correction and clinical improvements construction project at 
the McClellan Hospital at Mather Field, Sacramento, California;
    C. That VA will be authorized to proceed with an outpatient 
clinic improvement construction project at Mare Island, 
Vallejo, California, and Martinez, California;
    D. That VA will be authorized to enter into major facility 
leases for information resources management field offices in 
Birmingham, Alabama and Salt Lake City, Utah;
    E. That VA will be authorized to enter into major medical 
facility leases for satellite outpatient clinics in 
Jacksonville, Florida; Boston, Massachusetts; Canton, Ohio; 
Portland, Oregon, and Tulsa, Oklahoma;
    F. That appropriations of $34.6 million for fiscal year 
1998 for the Construction, Major Projects account will be 
authorized;
    G. That appropriations of $15.703 million for fiscal year 
1998 for the Medical Care account (for major medical leases) 
will be authorized; and
    H. That VA may expend only previously appropriated funds 
for major construction projects in northern California.

Title IV--Technical and Clarifying Amendments

    A. That clarifying and technical amendments will be made to 
statutes improving existing educational programs;
    B. That a clerical correction will be made to chapter 23 of 
title 38, United States Code, concerning burial benefits;
    C. That an amendment will be made to clarify that a veteran 
discharged or released from active service due to a disability 
may be furnished VA hospital care and medical services;
    D. That an amendment be made to clarify that ``category C'' 
veterans under VA treatment will be eligible for a one-time 
$1,200 home improvement/structural alteration benefit;
    E. That the restriction that limits eligibility for 
transfers to community nursing homes to VA inpatients will be 
stricken;
    F. That the name of the ``Wm. Jennings Bryan Dorn Veterans 
Hospital'' will be changed to the ``Wm. Jennings Bryan Dorn 
Department of Veterans Affairs Medical Center''; and
    G. That an amendment will be made to clarify certain 
definitions relating to benefits for Vietnam veterans' children 
with spina bifida.
    In addition, provisions derived from three of the nine 
bills reported by the Committee during the First Session were 
enacted, with modifications, as part of one public law (Public 
Law 105-368) enacted during the Second Session of the 105th 
Congress.
    Finally, a bill within the Committee's jurisdiction was 
enacted during the First Session with Committee support but 
without formal Committee action. That public law is an act to 
amend title 38, United States Code, to prohibit interment or 
memorialization in certain cemeteries of persons committing 
Federal or State capital crimes (Public Law 105-116), signed 
November 21, 1997.

                           B. SECOND SESSION

    During the Second Session of the 105th Congress, the 
Committee met in open session one time to consider legislation, 
and reported to the Senate six bills which incorporated 
provisions, as amended, of one bill which had been reported 
during the First Session; provisions derived from nine bills; 
and original provisions. These provisions, and provisions 
derived from two additional bills which had been reported 
during the First Session and nine bills which had been approved 
by the House of Representatives, were enacted into two public 
laws during the Second Session. These two public laws are 
itemized and summarized below:
    1. The ``Veterans Employment Opportunities Act of 1998'' 
(Public Law 105-339), signed October 31, 1998, and derived from 
H.R. 240 (passed by the House on April 9, 1997) and S. 1021 
(passed by the Senate on October 5, 1998). The ``Veterans 
Employment Opportunities Act of 1998'' specifies:
    A. That when Federal agencies seek employment candidates 
outside their own workforces, they will open employment 
opportunities to all ``preference eligible'' veterans;
    B. That veterans'' preference rights will be extended to 
non-policy positions in the Executive Office of the President, 
to certain positions in the legislative (including the General 
Accounting Office) and judicial branches, and to the Federal 
Aviation Administration;
    C. That a single, uniform, redress mechanism will be 
established;
    D. That violations of veterans' preferences laws will be 
deemed ``prohibited personnel practices;'' and
    E. That veterans' employment provisions applicable to 
Federal contractors will be expanded.
    2. The ``Veterans Programs Enhancement Act of 1998'' 
(Public Law 105-368), signed November 11, 1998, and derived 
from S. 309 (as ordered reported by the Committee on October 7, 
1997); S. 730, S. 1822, S. 2273, S. 2358 (as ordered reported 
by the Committee on July 28, 1998); H.R. 1092 (as passed by the 
House on April 16, 1997); H.R. 3039 (as passed by the House on 
May 19, 1998); H.R. 3212; H.R. 3213 (as passed by the House on 
March 24, 1998); H.R. 3603 (as passed by the House on May 19, 
1998); H.R. 3980 (as passed by the House on August 3, 1998); 
and H.R. 4110 (as passed by the House on August 3, 1998). The 
``Veterans Programs Enhancement Act of 1998'' specifies:

Title I--Provisions Relating to Veterans of Persian Gulf War and Future 
        Conflicts

    A. That the National Academy of Sciences (NAS) will 
evaluate available scientific evidence to determine whether 
there is an association between illnesses experienced by 
Persian Gulf War veterans and service in the Persian Gulf or 
exposure to one or more agents, hazards, medicines, or 
vaccines, during the Persian Gulf War;
    B. That VA will provide priority health care services to 
treat illnesses that may be attributable to service in the 
Persian Gulf War or during any other period of hostilities;
    C. That VA authority to provide care to Persian Gulf 
veterans will be extended through December 31, 2001;
    D. That VA will enter into an agreement with NAS to develop 
a plan for a national center for the study of war-related 
illnesses and post-deployment health issues;
    E. That VA will establish a public advisory committee to 
advise VA, the Department of Health and Human Services (HHS), 
and the Department of Defense (DOD) on proposed research 
relating to the health of Persian Gulf War veterans;
    F. That VA, HHS, and DOD will report to Congress annually 
on the status of Persian Gulf War research activities;
    G. That the findings of all Federal Persian Gulf War 
research will be made public;
    H. That VA will enter into an agreement with NAS to 
determine the efficacy of treatments provided to Persian Gulf 
War veterans;
    I. That VA and DOD will enter into an agreement with NAS to 
develop a curriculum for the continuing education of VA and DOD 
physicians on Persian Gulf War illness issues;
    J. That VA authority to evaluate the health status of 
spouses and children of Persian Gulf War veterans will be 
extended through December 31, 1999; and
    K. That examinations of spouses and children of Persian 
Gulf War veterans will be provided by VA, directly or on a fee-
reimbursed basis.

Title II--Education and Employment

    A. That VA's method for calculating certain fees paid to 
educational institutions that enroll veterans will be modified;
    B. That advance payments of educational assistance benefits 
to students participating in work-study programs will be 
optional, not mandatory;
    C. That servicemembers will be allowed to use college-
granted credit for life experience in meeting eligibility 
requirements for educational assistance benefits;
    D. That veteran-students in flight training will be allowed 
to continue to receive VA educational assistance even if they 
inadvertently fail to maintain certain flight certificates;
    E. That wage increase and minimum salary requirements for 
on- the-job training programs provided by State and local 
governments will be waived;
    F. That VA and military service branches will expand 
outreach activities;
    G. That States, in their capacities as employers, will be 
subject to the Uniformed Services Employment and Reemployment 
Rights Act (USERRA);
    H. That USERRA rights will be extended to veterans hired 
abroad by U.S. employers; and
    I. That procedures for processing Federal employee 
complaints relating to USERRA will be modified.

Title III--Compensation, Pension, and Insurance

    A. That the special pension provided to persons entered and 
recorded on the Army, Navy, Air Force, and Coast Guard Medal of 
Honor Roll will be increased from $400 to $600 per month;
    B. That the payment of accelerated death benefits will be 
authorized to terminally ill persons under the Servicemembers' 
Group Life Insurance and Veterans' Group Life Insurance 
policies;
    C. That VA will provide to Congress an assessment of the 
effectiveness and adequacy of insurance and benefits programs 
for the survivors of veterans with service-connected 
disabilities; and
    D. That VA will issue dividends to the holders of World War 
II-era National Service Life Insurance series ``H'' policies.

Title IV--Memorial Affairs

    A. That VA will be authorized to furnish memorial markers 
for certain members of the armed forces and spouses whose 
remains are unavailable for burial;
    B. That eligibility for burial and funeral benefits will be 
extended to certain persons who served as merchant mariners 
between August 16, 1945, and December 31, 1946;
    C. That the National Cemetery System will be redesignated 
the National Cemetery Administration, and that the Director of 
the National Cemetery System will be redesignated the Under 
Secretary for Memorial Affairs; and
    D. That VA will be authorized to grant to the States up to 
100 percent of costs to construct and equip new State 
cemeteries.

Title V--Court of Veterans Appeals

    A. That renominated Court of Veterans Appeals (CVA) judges 
will be authorized to remain on the bench for up to one year 
while awaiting Senate confirmation;
    B. That CVA's retirement fund will be exempted from 
sequestration orders;
    C. That CVA survivors' annuity benefits will be subject to 
cost-of-living adjustments;
    D. That CVA will submit a report on the feasibility of 
merging the retirement and survivor annuity plans with other 
Federal court retirement and survivor annuity programs; and
    E. That CVA will be renamed the United States Court of 
Appeals for Veterans Claims.

Title VI--Housing

    A. That VA will be authorized to guarantee loans to provide 
multifamily transitional housing for homeless veterans;
    B. That the Direct Loan Revolving Fund, the Loan Guaranty 
Revolving Fund, and the Guaranty and Indemnity Fund will be 
consolidated into the Veterans Housing Benefit Program Fund;
    C. That VA will provide in its annual budget submission a 
concise statement summarizing the financial activity of each of 
the housing programs operated under the Veterans Housing 
Benefit Program Fund;
    D. That VA authority to guarantee home loans for members of 
the National Guard and Reserve components will be extended to 
September 30, 2003; and
    E. That VA will comply with the Competition in Contracting 
Act and the Federal Acquisition Regulations when it contracts 
for property management services.

Title VII--Construction and Facilities Matters

    A. That VA will be authorized to proceed with a major 
medical construction projects at Long Beach, California; San 
Juan, Puerto Rico; Washington, D.C.; Palo Alto, California; 
Cleveland (Wade Park), Ohio; Tucson, Arizona; Dallas, Texas; 
Auburn and Merced, California; Lebanon, Pennsylvania; Tampa, 
Florida;
    B. That VA will be authorized to proceed with a major 
medical construction (parking garage) project at Denver, 
Colorado;
    C. That VA will be authorized to enter into major leases 
for outpatient clinic facilities in Baton Rouge, Louisiana; 
Daytona Beach, Florida; and Oakland Park, Florida;
    D. That appropriations of $241.1 million for fiscal years 
1999 and 2000 for the Construction, Major Projects account will 
be authorized;
    E. That appropriations of $8.5 million for fiscal years 
1999 and 2000 for the Medical Care account (for major leases) 
will be authorized;
    F. That the threshold for the definition of a ``major 
medical facility lease'' (giving rise to the requirement of a 
separate statutory authorization) will be increased from 
$300,000 to $600,000;
    G. That the threshold for the definition of a ``major 
parking facility project'' (giving rise to the requirement of a 
separate statutory authorization) will be increased from $3 
million to $4 million;
    H. That VA will be prohibited from charging employee 
parking fees at the Spark M. Matsunaga VA Medical and Regional 
Office Center in Honolulu, Hawaii;
    I. That VA will report to Congress on its use of authority 
to charge parking fees at VA medical facilities;
    J. That VA will report to Congress on a master plan 
relating to Department lands at the West Los Angeles VAMC;
    K. That the Aspinwall, Pennsylvania VAMC will be designated 
the ``H. John Heinz III Department of Veterans Affairs Medical 
Center'';
    L. That the Gainesville, Florida VAMC will be designated 
the ``Malcom Randall Department of Veterans Affairs Medical 
Center;'' and
    M. That the Columbus, Ohio VA Outpatient Clinic will be 
designated the ``Chalmers P. Wylie Veterans Outpatient 
Clinic.''

Title VIII--Health Professionals Educational Assistance

    A. That VA will establish an employee-incentive scholarship 
program to assist in the recruitment of health professionals;
    B. That individuals eligible for the program will have been 
VA employees for at least two years and will have exceptional 
employment records;
    C. That scholarships awarded under the program will cover 
tuition and other expenses of up to $10,000 per year for each 
full-time student participant;
    D. That participants who do not complete the course of 
study will reimburse VA for assistance received;
    E. That VA will establish an education debt reduction 
program to assist in the recruitment of health professionals;
    F. That employees eligible to participate in the education 
debt reduction program will have been employed for fewer than 
six months; and
    G. That assistance in the education debt reduction program 
will be limited to $6,000 in the first year of participation, 
$8,000 in the second year, and $10,000 in the third year.

Title IX--Miscellaneous Medical Care and Medical Administration 
        Provisions

    A. That VA will be authorized to provide priority health 
care services to treat certain diseases suffered by veterans 
who received nasopharyngeal radium irradiation treatment in 
service;
    B. That VA authority to counsel and treat veterans for 
sexual trauma shall be extended through December 31, 2001;
    C. That VA will develop and apply job-performance standards 
to Veterans Health Administration (VHA) network directors and 
other officials responsible for the allocation and management 
of resources;
    D. That VA authority to retain forfeited pension funds for 
nursing home operating expenses will be extended;
    E. That VA will report to Congress on the current system of 
locality-based pay for nurses;
    F. That VA will report to Congress on its preparations for 
domestic medical response to attacks involving weapons of mass 
destruction; and
    G. That an interim appointment of the Under Secretary for 
Health will be authorized through June 30, 1999.

Title X--Other Matters

    A. That VA facilities will be named only for the geographic 
area where they are located except as specified by statute;
    B. That reversion rights will be afforded to Board of 
Veterans' Appeals attorneys whose appointments as Board members 
are terminated;
    C. That Board of Veterans' Appeals attorneys will be 
members in good standing of a bar of any State;
    D. That the Board of Veterans' Appeals will be afforded 
flexibility in scheduling hearings and in considering and 
deciding appeals; and
    E. That the formula used by the Department of Labor's 
Veterans' Employment and Training Service (VETS) to determine 
the number of VETS-funded Disabled Veterans Outreach Program 
Specialists will be modified to reflect the working-age veteran 
population in each State.

Title XI--Compensation Cost-of-Living Adjustment

    That VA will be authorized to increase the rates of 
compensation and dependency and indemnity compensation to 
reflect an increase in the cost of living, effective December 
1, 1998.
    In addition, two public laws were enacted in the Second 
Session of the 105th Congress which contained provisions within 
the Committee's jurisdiction (a bar to compensation in cases 
where disability arises from tobacco use in service, and 
provisions enhancing certain education and readjustment 
benefits) on which no formal action was taken by the Committee. 
These two public laws are:
    1. The ``Transportation Equity Act for the 21st Century'' 
(Public Law 105-178), signed June 9, 1998; and
    2. The ``Internal Revenue Service Restructuring and Reform 
Act of 1998'' (Public Law 105-206), signed July 22, 1998.

                      Special Oversight Activities

    The Committee conducted extensive oversight on Persian Gulf 
War issues during the 103rd and 104th Congresses. Nonetheless, 
the Committee determined that an additional, special oversight 
effort was necessary to review issues raised by veterans of 
that war. Thus, the Committee established a Special 
Investigation Unit on Gulf War Illnesses (SIU) to examine 
Federal policies and actions that have had an impact on the 
health of Persian Gulf War veterans.
    During the First and Second Sessions, the SIU made numerous 
site visits to VA and DOD facilities. In addition, it reviewed 
voluminous materials and met with hundreds of Federal 
employees, VSO representatives, health professionals, 
scientists and researchers, and Gulf War veterans and their 
families. The SIU then issued a two-volume staff report, 
``Report of the Special Investigation Unit on Gulf War 
Illnesses,'' S. Prt. 105-39, which made the following key 
findings:
    1. That while Persian Gulf War veterans share symptoms and 
illnesses, there does not appear to be any single ``Gulf War 
syndrome'';
    2. That conclusions could not be drawn on the cause or 
causes of many symptoms and illnesses suffered by Gulf War 
veterans;
    3. That there is insufficient evidence to prove that 
persons were exposed to chemical weapons or nerve agents in the 
Gulf;
    4. That Persian Gulf War veterans who are ill must be 
monitored;
    5. That DOD must improve its ability to forecast, identify, 
and respond to chemical, biological, and other toxic 
battlefield exposures; and
    6. That VA must reduce delays in processing Persian Gulf 
War veterans' claims for compensation.
    In addition, the SIU concluded:
    1. That DOD was not sufficiently prepared during the 
Persian Gulf War to defend against chemical, biological, or 
other environmental hazards on the battlefield;
    2. That DOD was still not sufficiently prepared, as of the 
date of the Report, to defend against chemical, biological or 
other environmental hazards on the battlefield;
    3. That inadequate program monitoring hinders DOD and VA 
effectiveness in serving Gulf War veterans;
    4. That DOD and VA failures to collect information, retain 
records, and generate valid data analysis impede efforts to 
respond to the needs of Gulf War veterans; and
    5. That DOD and VA must make cooperation and coordination a 
top priority to ensure timely and effective service for Gulf 
War veterans.
    Finally, the SIU recommended:
    1. That DOD and the Central Intelligence Agency (CIA) 
create a single focal point for the gathering, analysis, and 
reporting of intelligence in support of military operations;
    2. That CIA and DOD intelligence training ensure awareness 
of historical and collateral facts that may affect the 
interpretation and handling of intelligence data;
    3. That DOD make chemical and biological warfare training a 
high priority;
    4. That DOD establish troop training and safety programs to 
minimize possible health hazards from contact with depleted 
uranium (DU);
    5. That DOD develop awareness and treatment doctrine to 
identify possible troop exposures to DU;
    6. That DOD fund research into the health effects of DU 
exposure;
    7. That DOD and VA utilize VA's DU Medical Follow-Up 
Program to provide timely medical evaluations to servicemembers 
and veterans exposed to DU;
    8. That DOD, VA, and HHS implement policies that 
incorporate health lessons learned from the Gulf War;
    9. That DOD establish a program to improve the capacity for 
rapid and early detection of exposures that may affect troop 
health during and after deployments;
    10. That Congress direct that an independent scientific 
body evaluate a national center for the study of military 
health, with an emphasis on post-conflict health concerns and 
illnesses;
    11. That VA contract with an independent scientific body to 
assess associations between illnesses and exposures to toxic 
agents and environmental or other wartime hazards;
    12. That DOD and VA monitor treatments provided to Persian 
Gulf War veterans to determine whether those veterans are 
getting better or worse over time;
    13. That DOD and VA remove barriers to timely and effective 
participation in health care programs;
    14. That VA designate a new Assistant Secretary to oversee 
research, treatment, and compensation programs for veterans of 
battlefield deployments;
    15. That VA training programs ensure a common awareness and 
understanding of programs and activities involving unexplained 
illnesses;
    16. That VA conduct a quality assessment of Gulf War 
veterans' compensation claims;
    17. That VA assess medical facilities' compliance with VA 
health care policies;
    18. That DOD ensure compliance with policies pertaining to 
the retention of records, logs, and other documents related to 
wartime operations;
    19. That DOD implement a system for tracking the locations 
of individual servicemembers during military operations;
    20. That VA develop a consolidated medical examination 
protocol to determine Persian Gulf War veterans' eligibility 
for disability compensation and to provide data for VA's 
Persian Gulf War Registry program;
    21. That VA utilize team and case management approaches so 
that VA claims processors and health care providers jointly 
participate in decisionmaking for benefits eligibility;
    22. That VA require all VA medical facilities to provide 
information to Gulf War veterans on how they may apply for 
compensation benefits;
    23. That VA require all VA benefits offices to provide 
information to Persian Gulf War veterans on how they may 
participate in the VA's Persian Gulf Registry examination 
program;
    24. That VA expand the Persian Gulf Registry to comply with 
the requirements for a Gulf War veteran national database as 
mandated in the Veterans Health Care Act of 1992;
    25. That DOD collect and maintain pre- and post-deployment 
medical information on all active duty and reserve personnel;
    26. That DOD and VA establish a birth defects registry to 
gather statistics on possible reproductive health effects 
stemming from battlefield exposures;
    27. That the joint DOD/CIA Khamisiyah plume modeling 
effort, and future similar efforts, be peer reviewed and made 
public;
    28. That DOD and VA regularly exchange information on the 
health status of, and effective treatments for, Persian Gulf 
War veterans;
    29. That DOD, in consultation with the Environmental 
Protection Agency (EPA) and HHS, supply to military commanders 
intelligence about environmental hazards that might adversely 
affect troop health and thereby impede the achievement of 
military missions;
    30. That VA direct that veterans be provided clear and 
candid information about environmental risks they may have 
experienced during deployments;
    31. That DOD and VA contract with an independent scientific 
body to evaluate treatment protocols that have been useful for 
persons in the general population who suffer from illnesses 
similar to Persian Gulf War veterans' illnesses and to 
recommend funding of appropriate clinical programs and 
research; and
    32. That DOD and VA independently report to Congress on 
implementation of recommendations identified in the SIU report.

                              Nominations


                            A. FIRST SESSION

    During the First Session of the 105th Congress, the 
Committee met in open session one time to consider four 
nominations. It reported four nominations to the Senate with 
favorable recommendations. The tables on page 14 portray the 
Committee's and the Senate's actions regarding these 
nominations.

                           B. SECOND SESSION

    During the Second Session of the 105th Congress, the 
Committee met in open session two times to consider four 
nominations. It reported four nominations to the Senate with 
favorable recommendations. The table on page 14 portrays the 
Committee's and the Senate's actions regarding these 
nominations.

                    II. Budget on Veterans Programs


                            A. FIRST SESSION

    On February 26, 1997, the Committee held a hearing on the 
Administration's proposed budget for veterans' programs for 
fiscal year 1998. Testimony was received from the Secretary of 
Veterans Affairs and other VA officials and from various 
veterans service organizations. In addition, statements for the 
record were received from the Chief Judge, United States Court 
of Veterans Appeals, and the Assistant Secretary of Labor for 
Veterans' Employment and Training.
    On April 24, 1997, pursuant to the requirements of section 
301(d) of the Congressional Budget Act of 1974, and with the 
approval of 11 of the 12 members of the Committee, the 
Committee submitted a letter to the Budget Committee reflecting 
its views and estimates on the proposed fiscal year 1998 
veterans' programs budget.
    With respect to discretionary account spending, the 
Committee's report expressed reservations on the 
Administration's proposal that VA medical care appropriations 
be cut and that additional funding be provided solely through 
(1) VA retention of VA-recovered third-party reimbursement and 
copayment receipts, and (2) payments to VA from Medicare 
accounts not then authorized by law. With respect to mandatory 
account spending, the Committee noted that it had previously 
approved a series of cost-saving provisions which had been 
incorporated into H.R. 2491, the ``Balanced Budget Act of 
1995,'' as vetoed by the President on December 6, 1995, and 
that it anticipated reconsideration of these provisions in the 
event that reconciliation instructions contained in the fiscal 
year 1998 budget resolution were to so dictate.

                                             UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS NOMINATIONS
--------------------------------------------------------------------------------------------------------------------------------------------------------
         Name and Position               Date of Nomination              Date of Hearing               Date Reported                Date Confirmed
--------------------------------------------------------------------------------------------------------------------------------------------------------
William P. Greene, Jr., Associate   May 19, 1997................  October 30, 1997............  November 4, 1997...........  November 5, 1997
 Judge.
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                UNITED STATES DEPARTMENT OF VETERANS AFFAIRS NOMINATIONS
--------------------------------------------------------------------------------------------------------------------------------------------------------
         Name and Position               Date of Nomination              Date of Hearing               Date Reported                Date Confirmed
--------------------------------------------------------------------------------------------------------------------------------------------------------
Richard J. Griffin, Inspector       September 2, 1997...........  October 30, 1997............  November 4, 1997...........  November 5, 1997
 General.
Joseph Thompson, Under Secretary    October 3, 1997.............  October 30, 1997............  November 4, 1997...........  November 5, 1997
 for Benefits.
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                      UNITED STATES DEPARTMENT OF LABOR NOMINATIONS
--------------------------------------------------------------------------------------------------------------------------------------------------------
         Name and Position               Date of Nomination              Date of Hearing               Date Reported                Date Confirmed
--------------------------------------------------------------------------------------------------------------------------------------------------------
Espiridion A. Borrego, Assistant    September 2, 1997...........  October 30, 1997............  November 4, 1997...........  November 5, 1997
 Secretary for Veterans'
 Employment and Training.
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                UNITED STATES DEPARTMENT OF VETERANS AFFAIRS NOMINATIONS
--------------------------------------------------------------------------------------------------------------------------------------------------------
         Name and Position               Date of Nomination              Date of Hearing               Date Reported                Date Confirmed
--------------------------------------------------------------------------------------------------------------------------------------------------------
Togo D. West, Jr., Secretary of     January 27, 1998............  February 24, 1998...........  April 22, 1998.............  April 28, 1998
 Veterans Affairs.
Eligah Dane Clark, Chairman, Board  February 5, 1998............  ............................  October 6, 1998............  October 21, 1998
 of Veterans' Appeals.
Edward A. Powell, Jr., Assistant    February 26, 1998...........  ............................  October 6, 1998............  October 21, 1998
 Secretary for Management.
Leigh A. Bradley, General Counsel.  July 21, 1998...............  ............................  October 6, 1998............  October 21, 1998
--------------------------------------------------------------------------------------------------------------------------------------------------------

    On June 4, 1997, the Senate and House Committees on the 
Budget issued a conference report (H. Rept. 105--116) approving 
a budget resolution (H. Con. Res. 84) which included targets 
for savings on veterans' programs. On June 5, 1997, the Senate 
adopted the concurrent resolution. Section 104 of the 
resolution directed the Committee to report changes in laws 
within the Committee's jurisdiction sufficient to reduce 
outlays for veterans' programs by $681 million in fiscal year 
2002, and $2.733 billion in fiscals years 1998 through 2002.
    On June 12, 1997, the Committee met in open session to 
consider, among other things, measures for complying with the 
outlay-reduction targets specified in the concurrent 
resolution. By unanimous vote, the Committee approved measures 
that would:
    1. Extend through fiscal year 2002 VA authority to 
guarantee the timely payment of principal and interest to 
purchasers of real estate mortgage investment conduits through 
which VA loans to purchasers of defaulted property are bundled 
and resold in the securities markets (yielding, according to 
the Congressional Budget Office (CBO), Federal deficit 
reductions of $5 million in fiscal year 2002 and $25 million in 
fiscal years 1998 through 2002);
    2. Extend through fiscal year 2002 certain fees charged to 
borrowers who obtain home purchase loans guaranteed, insured, 
or made by VA (yielding, according to CBO, Federal deficit 
reductions of $199 million in fiscal year 2002 and $822 million 
in fiscal years 1998 through 2002);
    3. Extend through fiscal year 2002 VA authority to purchase 
and resell properties financed with defaulted VA-guaranteed 
loans when it is to the Government's advantage to do so 
(yielding, according to CBO, Federal deficit reductions of $5 
million in fiscal year 2002 and $20 million in fiscal years 
1998 through 2002);
    4. Extend through fiscal year 2002 VA authority to verify 
income information provided by VA claimants for ``means-
tested'' benefits by gaining access to certain records of the 
Social Security Administration and the Internal Revenue Service 
(yielding, according to CBO, Federal deficit reductions of $16 
million with respect to benefits programs and $19 million with 
respect to medical service programs in fiscal year 2002, and 
$40 million with respect to benefits programs and $71 million 
with respect to medical service programs in fiscal years 1998 
through 2002);
    5. Extend through fiscal year 2002 limitations on pension 
benefits to be provided to certain pension-eligible veterans 
receiving Medicaid-financed nursing home care (yielding, 
according to CBO, Federal deficit reductions of $174 million in 
fiscal year 2002 and $637 million in fiscal years 1998 through 
2002);
    6. Extend through fiscal year 2002 VA authority to require 
that certain veterans make copayments in exchange for receiving 
hospital and medical care services (yielding, according to CBO, 
revenues of $11 million in fiscal years 1999 through 2002);
    7. Extend through fiscal year 2002 VA authority to require 
that certain veterans make copayments in exchange for receiving 
outpatient medications (yielding, according to CBO, revenues of 
$152 million in fiscal years 1999 through 2002);
    8. Extend through fiscal year 2002 VA authority to collect 
from third-party payers (e.g., insurance carriers or health 
care plans) the reasonable cost of providing certain medical 
treatments to certain veterans (generally, treatments for non-
service-connected disabilities and medical conditions) 
(yielding, according to CBO, revenues of $829 million in fiscal 
years 1999 through 2002);
    9. Authorize VA to retain funds collected through veterans' 
copayments and third-party payer reimbursements (rather than 
remitting such funds to the United States Treasury) and 
specifying that such funds would be retained by the collecting 
VA service network (yielding, according to CBO, Federal deficit 
reductions of $139 million in fiscal year 2002 and $641 million 
in fiscal years 1998 through 2002);
    10. Require that VA, when it calculates annual cost-of-
living adjustments in disability compensation and dependency 
and indemnity compensation benefits for fiscal years 1998 
through 2002, round monthly benefits down to the next lower 
dollar amount (yielding, according to CBO, Federal deficit 
reductions of $128 million in fiscal year 2002 and $391 million 
in fiscal years 1998 through 2002);
    11. Increase fees (from 1.0 percent to 2.25 percent of the 
total loan amount) charged by VA for VA financing to purchasers 
of properties acquired by VA due to default (yielding, 
according to CBO, Federal deficit reductions of $15 million in 
fiscal year 2002 and $67 million in fiscal years 1998 through 
2002); and
    12. Authorize VA to refer certain loan guaranty debts to 
the Internal Revenue Service for offset against tax refunds 
and, in cases where the debtor is a Federal employee, to the 
debtor's employing agency for offset against salary or wages 
(yielding, according to CBO, Federal deficit reductions of $90 
million in fiscal years 1998 through 2002).
    On June 12, 1997, measures approved by the Committee on 
that date were submitted to the Committee on the Budget. That 
filing included proposed legislative language reflecting the 
Committee's reconciliation recommendations; proposed report 
language outlining the Committee's recommendations; and a cost 
estimate prepared by CBO indicating that the Committee's 
recommendations, if enacted, would result in reductions in 
direct spending outlays of $681 million in fiscal year 2002, 
and $2.733 billion in fiscal years 1998 through 2002.
    On June 12, 1997, the House Committee on Veterans' Affairs 
approved a series of budget reconciliation measures which 
differed from those approved by the Committee. The Senate 
appointed conferees on June 27, 1997, and the House appointed 
conferees on July 10, 1997. The conferees reconciled the 
differences as follows: they agreed to the Committee-approved 
provisions summarized above and, further, agreed to a House 
Committee-approved provision, as modified, specifying that, for 
fiscal year 1998, in the event that CBO-projected receipts by 
VA from veterans' copayments and third-party payer 
reimbursements fell short of projections by $25 million or 
more, such shortfalls would be reimbursed by the United States 
Treasury.
    These provisions were reported to the Senate and House 
Committees on the Budget and were included as Title VIII, 
``Veterans and Related Provisions,'' of the conference report 
on H.R. 2015 (H. Rept. 105-217), the ``Balanced Budget Act of 
1997.'' The House agreed to the conference report on July 30, 
1997, and on July 31, 1997, the Senate agreed to the conference 
report, clearing the measure for the President. On August 1, 
1997, H.R. 2015 was presented to the President. On August 5, 
1997, the President signed H.R. 2015 into law as Public Law 
105-33, the ``Balanced Budget Act of 1997.''

                           B. SECOND SESSION

    On March 18, 1998, the Committee on the Budget ordered 
reported an original measure setting forth the congressional 
budget for the United States Government for fiscal years 1999, 
2000, 2001, 2002, and 2003 and revising the concurrent 
resolution on the budget for fiscal year 1998. On March 20, 
1998, that measure, S. Con. Res. 86, was reported (S. Rept. 
105-170) by the Committee on the Budget containing provisions 
which, with respect to spending on veterans benefits and 
services (budget function 700), would have:
    1. Modified the levels of new budget authority and outlays 
previously declared appropriate for fiscal years 1998 through 
2002 by the budget resolution, H. Con. Res. 84, adopted by the 
Senate on June 5, 1997, and upon which the provisions of the 
``Balanced Budget Act of 1997'' (Public Law 105-33) were based;
    2. Specified, in addition, new budget authority and outlay 
levels appropriate for fiscal year 2003;
    3. Increased such new budget authority and outlays levels 
for transportation programs (budget function 400) discretionary 
spending;
    4. Decreased such new budget authority and outlays levels 
for veterans benefits and services (budget function 700) 
mandatory spending; and
    5. Reserved the totality of savings in fiscal years 1999 
through 2003 associated with such reductions in function 700 
mandatory spending--$10.5 billion--for the purpose of 
offsetting additional outlays for discretionary highway and 
transit spending, as specified in the ``Transportation Equity 
Act for the 21st Century'' (Public Law 105-178), and as might 
be specified in future Department of Transportation and Related 
Agencies Appropriations Acts.
    The Congressional Budget Office had previously estimated 
that savings of $10.5 billion over fiscal years 1999 through 
2003 would result from the enactment of legislation barring the 
payment of veterans' compensation or survivors' benefits 
(dependency and indemnity compensation) in cases where the 
illness giving rise to the service-connected disability on 
which such benefits were premised stemmed from tobacco use 
while in service in the Armed Forces.
    On March 31, 1998, the Committee held a hearing on tobacco-
related illnesses suffered by veterans, and on VA policies for 
providing compensation and other benefits to veterans who are 
disabled by such illnesses and to their survivors. Among the 
topics on the agenda were VA policies for granting compensation 
and other benefits on the basis of tobacco-related 
disabilities, the costs of such benefits, and the mandatory 
spending savings that might be anticipated in the event that 
eligibility for such benefits might be barred as a matter of 
law.
    S. Con. Res. 86 was considered by the Senate on March 30, 
1998, through April 2, 1998, and was agreed to by the Senate on 
that date, as amended. Among the amendments adopted by the 
Senate on April 2, 1998, was an amendment offered by the 
Committee's Chairman, Senator Arlen Specter, and its Ranking 
Minority Member, Senator John D. Rockefeller IV. In the form 
offered, the amendment would have stricken provisions in S. 
Con. Res. 86 increasing transportation programs and decreasing 
veterans programs spending allowances. The amendment, however, 
was modified by a second degree amendment which struck these 
provisions and substituted in their place a provision mandating 
a further analysis by the Office of Management and Budget and 
the Congressional Budget Office of smoking-related costs borne 
by VA. Thus, the provisions of S. Con. Res. 86 specifying that 
veterans programs mandatory spending be reduced by $10.5 
billion during fiscal years 1999 through 2003 were approved by 
the Senate on April 2, 1998.
    Provisions similar to those in S. Con. Res. 86, as 
reported, relating to transportation and veterans benefits were 
contained in a companion measure, H. Con. Res. 284, reported by 
the House Committee on the Budget on May 27, 1998, and approved 
by the House of Representatives and referred to the Senate on 
June 5, 1998. Conferees were appointed by the Senate on June 
15, 1998. However, no conference agreement was ever reached 
and, thus, no budget resolution was approved during the Second 
Session of the 105th Congress. Consequently, the Committee was 
never directed by resolution to report changes in laws within 
the Committee's jurisdiction sufficient to reduce outlays by 
$10.5 billion, or any other amount, over fiscal years 1999 
through 2003 for veterans programs. As a consequence, the 
Committee took no such action.
    Notwithstanding the foregoing, legislation was enacted, 
without Committee action, during the Second Session of the 
105th Congress which had the effect of barring the payment of 
disability compensation in cases where disability is 
attributable to the use of tobacco products in service. 
Specifically, subtitle B of Title VIII of the ``Transportation 
Equity Act for the 21st Century'' (Public Law 105-178), signed 
into law by the President on June 9, 1998, contained provisions 
which:
    1. Prohibited the payment of wartime disability 
compensation under section 1110 of title 38, United States 
Code, and peacetime disability compensation under section 1131 
of title 38, United States Code, in cases where disability is 
the result of the use of tobacco products except in cases where 
eligibility for compensation had been determined prior to the 
date of enactment;
    2. Increased by 20 percent educational assistance benefits 
provided to veterans under section 3015 of title 38, United 
States Code, and to the Selected Reserve under section 16131 of 
title 10, United States Code;
    3. Increased from $38,000 to $43,000 the maximum grant that 
may be provided to eligible veterans for adapted housing 
assistance under section 2101 of title 38, United States Code;
    4. Increased from $5,500 to $8,000 the maximum grant that 
may be provided to eligible veterans for automobiles and 
adaptive automobile equipment under section 3902 of title 38, 
United States Code;
    5. Increased by $600 the annual allowance provided under 
section 1521 of title 38, United States Code, to pension-
eligible veterans in need of regular aid and attendance;
    6. Restored previously repealed eligibility for dependency 
and indemnity compensation in cases involving eligible spouses 
who had remarried and whose remarriages had later been 
dissolved by death or divorce; and
    7. Limited to 75 percent the offset of special separation 
benefits that could be recouped from veterans disability 
compensation benefits.
    Subsequently, Congress enacted, without Committee action, 
and the President signed into law on July 22, 1998, the 
``Internal Revenue Service Restructuring and Reform Act of 
1998'' (Public Law 105-206). That statute contained 
``corrections'' to the above-summarized provisions of the 
``Transportation Equity Act for the 21st Century'' which:
    1. Clarified the terms of the statutory ban on compensation 
for disabilities related to tobacco use by enacting special 
provisions relating to such claims so that (a) compensation 
would not be barred to persons who suffered tobacco-related 
disabilities while in service and (b) compensation would not be 
barred to persons who had filed claims for compensation before 
the date of enactment;
    2. Increased by 20 percent benefits paid under sections 
3532, 3534, and 3542 of title 38, United States Code, to 
veterans' survivors and dependents who are eligible for 
educational assistance; and
    3. Increased by 20 percent benefits paid under section 3687 
of title 38, United States Code, to veterans and survivors and 
dependents who are eligible for assistance while pursuing 
apprenticeship and on-the-job training programs.

        III. Service-Connected Compensation and Related Programs


                              A. OVERVIEW

    VA's disability compensation program provides monthly 
payments to veterans who have impairments to earning capacity 
because of service-connected disabilities. The amount paid 
varies in accordance with the nature of the veteran's 
disability or combination of disabilities and, thus, the extent 
to which earning capacity is deemed to have been impaired. 
Monthly benefits so paid are specified in a schedule 
established and codified in statute. As of the end of calendar 
year 1998, an estimated 2.281 million veterans were receiving 
compensation benefits.
    VA pays dependency and indemnity compensation (DIC) 
benefits to surviving spouses, children, and dependent parents 
of veterans who die during active duty or as a result of a 
service-connected condition. This benefit is intended to 
compensate for the loss of family income. In cases where a 
surviving spouse remarries, he or she loses eligibility for DIC 
until such time that the remarriage is terminated by death or 
divorce, in which case the surviving spouse would then be 
eligible to reapply for DIC. At the end of calendar year 1998, 
an estimated 327,928 survivors were receiving benefits under 
the DIC program.
    Congress also has established programs to meet certain 
specific needs of service-connected veterans, including grants 
for specially adapted housing; grants for automobiles and 
adaptive automotive equipment; clothing allowances for service-
connected veterans who use prosthetic or orthopedic appliances 
which wear or tear clothing, or who use medications which 
damage outer garments; and additional compensation allowances 
for certain service-connected veterans who have dependents.

                            B. FIRST SESSION

1. Cost-of-Living Adjustment

    On July 7, 1997, Chairman Specter introduced S. 987 at the 
request of the Administration. That bill would have authorized 
VA to make cost-of-living adjustments, by administrative 
action, in the rates of disability compensation for veterans 
with service-connected disabilities and the rates of DIC for 
survivors of such veterans, and to revise and improve certain 
veterans compensation, pension, and memorial affairs programs. 
Prior to the introduction of the bill, the Committee, on 
February 26, 1997, held a hearing on VA's proposed budget for 
fiscal year 1998. During that hearing, the Committee considered 
projected cost-of-living adjustments to compensation and DIC 
for 1998, and received testimony from VA and various veterans 
service organizations. In addition, on July 25, 1997, the 
Committee held a hearing on S. 987 and other pending 
legislation. At that hearing, the Committee received further 
testimony from VA and various veterans service organizations.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 987, as amended. As amended, 
the bill contained only those provisions of S. 987 which would 
authorize a cost-of-living adjustment in the rates of 
disability compensation and DIC. On that date, the Committee 
voted to report S. 987, as amended, favorably to the Senate, 
and on October 29, 1997, the bill was reported (S. Rept. 105-
120).
    On October 31, 1997, the House passed a measure, H.R. 2367, 
which contained a cost-of-living adjustment provision which was 
substantially identical to that in S. 987, as amended, and 
referred that bill to the Senate. On November 5, 1997, the 
Senate took up H.R. 2367 and unanimously passed H.R. 2367 
without amendment. On November 7, 1997, H.R. 2367 was presented 
to the President. On November 19, 1997, the President signed 
H.R. 2367 into law as Public Law 105-98, the ``Veterans'' 
Compensation Rate Amendments of 1997.''

2. Codification of Previous Cost-of-Living Adjustment

    On July 7, 1997, Chairman Specter introduced S. 986 at the 
request of the Administration. That bill would have made 
certain improvements in the housing loan programs for veterans 
and eligible persons, and for other purposes. On July 25, 1997, 
the Committee held a hearing on S. 986 and other pending 
legislation. At that hearing, the Committee received testimony 
from VA and various veterans service organizations.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 986, as amended. As amended, 
the bill contained provisions which would have codified cost-
of-living adjustments in disability compensation, DIC, 
additional compensation for service-connected veterans who have 
dependents, and the clothing allowance, previously made by VA 
through administrative action as authorized by the ``Veterans'' 
Compensation Cost-of-Living Adjustment Act of 1996'' (Public 
Law 104-263). On that date, the Committee voted to report S. 
986 favorably to the Senate, and on November 10, 1997, the bill 
was reported (S. Rept. 105-153).
    As noted above, on October 31, 1997, the House passed H.R. 
2367. When that bill was brought to the House Floor on October 
31, 1997, an amendment was approved which added a provision 
codifying the administrative cost-of-living adjustments made by 
VA pursuant to the ``Veterans'' Compensation Cost-of-Living 
Adjustment Act of 1996'' (Public Law 104-263). The House then 
passed H.R. 2367, as so amended. On November 5, 1997, the 
Senate took up H.R. 2367 and unanimously passed H.R. 2367 
without amendment. On November 7, 1997, H.R. 2367 was presented 
to the President. On November 19, 1997, the President signed 
H.R. 2367 into law as Public Law 105-98, the ``Veterans' 
Compensation Rate Amendments of 1997.''

3. Persian Gulf War Veterans

    On January 28, 1997, Senator Paul Wellstone introduced S. 
211, to extend the period of time within which manifestations 
of chronic disabilities due to undiagnosed symptoms must appear 
in Persian Gulf War veterans in order for those disabilities to 
be compensable by VA.
    Prior to the introduction of S. 211, on January 9, 1997, 
the Committee held the first of 12 hearings during the First 
Session on issues pertaining to Persian Gulf War veterans. At 
that hearing, the Committee received testimony from 
representatives of the VA, the CIA, and the Presidential 
Advisory Committee on Persian Gulf War Veterans' Illnesses 
(PAC). On January 29, 1997, the Committee held a hearing and 
received testimony from representatives of the DOD. On April 
17, 1997, the Committee held a hearing and received testimony 
from General Colin L. Powell, U.S. Army (retired), Former 
Chairman, Joint Chiefs of Staff. On June 25, 1997, the 
Committee held a hearing and received testimony from 
representatives of the General Accounting Office. Finally, on 
the dates and at the sites indicated as follows, the Committee 
also held a series of field hearings relating to Persian Gulf 
War veterans: January 27, 1997, Pittsburgh, Pennsylvania; 
February 3, 1997, Philadelphia, Pennsylvania; February 7, 1997, 
Wormleysburg, Pennsylvania; April 2, 1997, Huntington, West 
Virginia; April 3, 1997, Wheeling, West Virginia; August 5, 
1997, Kent, Washington; August 5, 1997, Spokane, Washington; 
and November 20, 1997, Pittsburgh, Pennsylvania.
    No action was taken on S. 211 during the First Session.
    On October 24, 1997, Ranking Minority Member Rockefeller 
introduced S. 1320, the proposed ``Persian Gulf War Veterans 
Act of 1997.'' S. 1320, as introduced, would have:
    1. Codified VA authority to designate, based on sound 
medical and scientific evidence, diagnosed and undiagnosed 
illnesses presumed to be associated with Persian Gulf War 
service for purposes of compensation;
    2. Compelled VA to enter into an agreement with NAS to (a) 
identify environmental and other agents to which Persian Gulf 
War veterans were exposed; (b) identify illnesses which Persian 
Gulf War veterans suffer; (c) analyze associations, if any, 
between various environmental exposures in the Persian Gulf War 
theater and disease; and (d) analyze potential treatment 
models;
    3. Compelled VA to monitor the health status of Persian 
Gulf War veterans; and
    4. Required the establishment of certain research and 
outreach programs to assist veterans of the Persian Gulf War.
    No action was taken on S. 1320 during the First Session.

4. Other Compensation Issues

    On April 22, 1997, Senator Daniel K. Inouye introduced S. 
623, the proposed ``Filipino Veterans Equity Act of 1997.'' 
That bill would have modified provisions of law which specify 
that World War II service in the forces of the Commonwealth of 
the Philippines and in the Philippine Scouts shall not be 
deemed to have been active military, naval, or air service 
except for purposes of eligibility for compensation and DIC, in 
which case such persons shall be eligible for such benefits at 
one-half the rate of benefits provided to veterans. The bill 
would have deemed persons who served during World War II in the 
forces of the Commonwealth of the Philippines and in the 
Philippine Scouts as having served in the active military, 
naval, or air service and thereby deemed them to be veterans 
eligible for all VA-administered benefits on the same basis as 
any other veteran.
    On July 25, 1997, the Committee held a hearing on S. 623 
and other pending legislation. At that hearing, the Committee 
received testimony from Senator Inouye, from United States 
Representatives Bob Filner and Benjamin A. Gilman, and from 
representatives of the VA and various veterans service 
organizations.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 623, as amended. As amended, 
the bill would have authorized the payment of burial and 
funeral allowance benefits to former members of the 
Commonwealth Army of the Philippines who, at death, were 
naturalized citizens of the United States and resident in the 
United States. On that date, the Committee voted to report S. 
623 favorably to the Senate. No further action was taken on S. 
623 during the 105th Congress.
    As noted above, on July 7, 1997, Chairman Specter 
introduced S. 987 at the request of the Administration. That 
bill contained, among other provisions, one which would have 
banned VA compensation in cases where disability is 
attributable to the use of tobacco products in service. No 
action was taken on this provision in S. 987 during the First 
Session.
    On October 1, 1997, Senator James M. Jeffords introduced S. 
1247, a bill to limit the amount of recoupment from veterans 
disability compensation that is required in the case of a 
veteran who received special separation benefits (SSB) from the 
Department of Defense. The bill would have specified that only 
75 percent of special separation benefits--which would 
otherwise be fully offset--would be offset from subsequent 
disability compensation benefits (if any).
    On November 4, 1997, Senator James M. Jeffords introduced 
S. 1359, a bill which was substantially identical to S. 1247.
    No action was taken on S. 1247 or S. 1359 during the First 
Session.
    On November 6, 1997, Senator Paul Wellstone introduced S. 
1385, the proposed ``Justice for Atomic Veterans Act of 1997.'' 
S. 1385 would have expanded the statutory listing of 15 
diseases (leukemia, multiple myeloma, lymphomas (except 
Hodgkin's Lymphoma), cancers of the thyroid, breast, pharynx, 
esophagus, stomach, small intestine, pancreas, bile ducts, gall 
bladder, liver, salivary gland, and urinary tract) which are 
presumed to be service-connected for purposes of eligibility 
for VA compensation if contracted by veterans who were exposed 
to radiation in service. S. 1385 would have added to that 
listing the following additional diseases: cancers of the lung, 
bones, skin, colon, rectum, ovary, and brain and central 
nervous system; posterior subcapsular cataracts; non-malignant 
thyroid nodular disease; and parathyroid adenoma.
    No action was taken on S. 1385 during the First Session.

5. Technical and Clarifying Amendments

    During the 104th Congress, provisions which had originally 
been introduced by Senate Minority Leader Thomas A. Daschle as 
S. 2008, the proposed ``Agent Orange Benefits Act of 1996,'' 
were enacted as section 421 of Public Law 104-204 (September 
26, 1996), an ``Act Making Appropriations for the Departments 
of Veterans Affairs, and Housing and Urban Development, and for 
Sundry Independent Agencies, Boards, Commissions, Corporations, 
and Offices for the Fiscal Year ending September 30, 1997.'' 
Those provisions provided the following benefits to Vietnam 
veterans' children who are born with spina bifida:
    1. Payment of a monthly monetary allowance, varying by 
degree of disability suffered by the child;
    2. Health care for any disability associated with the 
person's spina bifida; and
    3. Vocational training, job placement and post-job-
placement services.
    On July 15, 1997, Chairman Specter introduced S. 1018 at 
the request of the Administration. That bill would have made 
technical and clarifying amendments to provisions of law 
governing benefits for certain children of Vietnam veterans 
adopted in Public Law 104-204.
    As noted above, the Committee met in open session, on 
October 7, 1997, to consider pending legislation. On that date, 
the Committee voted to report S. 714, a bill pertaining to 
subject matter not related to S. 1018. Subsequently, S. 714 was 
passed by the Senate on November 5, 1997, and referred to the 
House. On November 9, 1997, the House amended, and then passed, 
S. 714. Among the amendments added to S. 714 by the House (at 
section 404) were technical and clarifying amendments derived 
from S. 1018. On November 10, 1997, the Senate agreed to the 
House amendments to S. 714 (including section 404), clearing 
the measure for the President. On November 13, 1997, S. 714, 
the ``Veterans'' Benefits Act of 1997,'' was presented to the 
President. On November 21, 1997, the President signed S. 714 
into law (Public Law 105-114).

                           C. SECOND SESSION

1. Cost-of-Living Adjustment

    On July 8, 1998, Chairman Specter introduced S. 2273, the 
proposed ``Veterans'' Compensation Cost-of-Living Adjustment 
Act of 1998.'' S. 2273 would have authorized VA to make cost-
of-living adjustments, by administrative action, to 
compensation and DIC rates, effective December 1, 1998.
    On July 28, 1998, the Committee met in open session to 
consider, among other things, S. 2273, as amended, to correct a 
typographical error in the bill as introduced. On that date, 
the Committee voted to report S. 2273 favorably to the Senate. 
On September 21, 1998, the bill was reported (S. Rept. 105-34).
    On August 3, 1998, the House passed a measure, H.R. 4110, 
which would have provided for a cost-of-living adjustment in VA 
compensation and DIC rates, and which, in addition, contained 
provisions relating to veterans' educational benefits, the 
Court of Veterans Appeals, and other matters. On September 30, 
1998, the Senate took up H.R. 4110 and amended it to substitute 
the text of S. 2273, as reported. The Senate then passed H.R. 
4110, by voice vote, as so amended.
    On October 10, 1998, the House agreed to the Senate 
amendment to H.R. 4110, and further amended the bill to add to 
it a number of measures, discussed in detail below, unrelated 
to making cost-of-living adjustments to compensation and DIC 
rates. On October 21, 1998, the Senate agreed to the House 
amendments, clearing the measure for the President. On November 
2, 1998, H.R. 4110 was presented to the President. On November 
11, 1998, the President signed H.R. 4110 into law as Public Law 
105-368, the ``Veterans Programs Enhancement Act of 1998.''

2. Persian Gulf War Veterans

    On July 27, 1998, Ranking Member Rockefeller (for himself 
and for Chairman Specter and Senators Byrd, Daschle, Cleland, 
Conrad, Murray, Kerry, Dodd, Kohl, Mikulski, Hutchinson, Ford, 
Thurmond, Campbell, and Jeffords) introduced S. 2358, the 
proposed ``Persian Gulf War Veterans Act of 1998,'' a bill 
which incorporated, and added to, provisions contained in S. 
1320, introduced during the First Session. Like S. 1320, S. 
2358 would have:
    1. Codified VA authority to designate, based on sound 
medical and scientific evidence, diagnosed and undiagnosed 
illnesses presumed to be associated with Persian Gulf War 
service;
    2. Compelled VA to enter into an agreement with NAS to (a) 
identify environmental and other agents to which Persian Gulf 
War veterans had been exposed; (b) identify illnesses which 
Persian Gulf War veterans suffer; (c) analyze associations, if 
any, between various environmental exposures and disease; and 
(d) analyze potential treatment models;
    3. Compelled VA to monitor the health status of Persian 
Gulf War veterans; and
    4. Required the establishment of research and outreach 
programs to assist veterans of the Persian Gulf War.
    In addition, S. 2358 would have:
    1. Extended VA authority to provide priority access for 
care for ``undiagnosed illnesses'' to December 31, 2001; and
    2. Extended VA authority to conduct diagnostic testing and 
medical examinations of Persian Gulf veterans' spouses and 
children.
    As noted above, the Committee met in open session on July 
28, 1998, to consider pending legislation. Among the bills 
considered was S. 2358. On that date, the Committee voted to 
report S. 2358 favorably to the Senate, and on October 2, 1998, 
the bill was reported (S. Rept. 105-362). On October 8, 1998, 
the Senate took up S. 2358, as amended to incorporate technical 
amendments and an amendment to the bill's title, and 
unanimously passed S. 2358, as amended, and sent the bill to 
the House. On October 10, 1998, the House then incorporated 
certain provisions of S. 2358 into H.R. 4110 when it amended 
and passed H.R. 4110 (as amended and passed by the Senate on 
September 30, 1998) as the ``Veterans Programs Enhancement Act 
of 1998.'' That bill was signed by the President on November 
11, 1998 as Public Law 105-368.
    Provisions similar to those contained in that statute were 
included as the ``Persian Gulf War Veterans Act of 1998'' in 
Title XVI of Division C of legislation that was to become 
Public Law 105-277, an ``Act Making Omnibus Consolidated and 
Emergency Supplemental Appropriations for Fiscal Year 1999.'' 
That legislation was approved by the Senate on October 21, 1998 
(but before approval of the ``Veterans Programs Enhancement Act 
of 1998'' on the same date), and was presented to the President 
and signed into law on October 21, 1998, as Public Law 105-277.

3. Compensation for Tobacco-Related Disabilities

    As noted above, subtitle B of Title VIII of the 
``Transportation Equity Act for the 21st Century'' (Public Law 
105-178), signed into law by the President on June 9, 1998, 
contains a ban on VA compensation for tobacco-related 
disabilities, and section 9014 of the ``Internal Revenue 
Service Restructuring and Reform Act of 1998'' (Public Law 105-
206), signed into law by the President on July 22, 1998, 
clarified the terms of that statutory ban. In summary, such 
compensation will be barred with respect to claimants who had 
not filed claims for compensation prior to enactment of Public 
Law 105-178 (even if, for example, the veteran became dependent 
upon tobacco in service), but it will not be barred with 
respect to disabilities from tobacco-related illnesses 
contracted while in service.

4. Other Veterans' Compensation Issues

    As noted above, Senator James M. Jeffords introduced both 
S. 1247 and S. 1359 during the First Session. Those bills would 
have specified that only 75 percent (not 100 percent, as 
otherwise provided by law) of special separation benefits would 
be offset from a veteran's subsequent disability compensation 
benefits (if any).
    The Committee did not take any action on S. 1247 or S. 1359 
during the Second Session. However, as detailed in section 
II.B., above, subtitle B of Title VIII of the ``Transportation 
Equity Act for the 21st Century'' (Public Law 105-178) 
contained a number of provisions within the Committee's 
jurisdiction. Among them was a provision (in section 8208) 
derived from S. 1247 and S. 1359 which limited to 75 percent 
the offset of special separation benefits that could be 
recouped from veterans' disability compensation benefits.
    As noted above, Senator Paul Wellstone introduced S. 1385 
during the First Session of the 105th Congress. As introduced, 
S. 1385 would have added 10 diseases (cancers of the lung, 
bones, skin, colon, rectum, ovary, brain and central nervous 
system; posterior subcapsular cataracts; non-malignant thyroid 
nodular disease; and parathyroid adenoma) to the listing of 15 
diseases (itemized above) presumed to be service-connected for 
purposes of eligibility for VA compensation if contracted by 
veterans who were exposed to radiation in service. On July 28, 
1998, the Committee met in open session to consider, among 
other things, S. 1385, as amended to incorporate a substitute. 
As amended, S. 1385 would have added the following three of ten 
diseases contained in S. 1385, as introduced, to the statutory 
listing of diseases presumed to be service-connected for 
purposes of eligibility for VA compensation if contracted by 
veterans who were exposed to radiation in service: cancers of 
the lung, ovary, and brain and central nervous system. The 
Committee voted to report S. 1385, as amended, favorably to the 
Senate on July 28, 1998, and on September 22, 1998, the bill 
was reported (S. Rept. 105-343). No further action was taken on 
S. 1385 during the 105th Congress.
    As detailed above, H.R. 4110, as amended by the Senate on 
September 30, 1998, was further amended by the House on October 
10, 1998. Among those amendments was a provision (at section 
303) requiring VA to report to Congress on the adequacy of 
survivor benefits programs and insurance programs in meeting 
the needs of the survivors of deceased veterans who had had 
service-connected disabilities. On October 21, 1998, the Senate 
agreed to the House amendments, clearing the measure for the 
President. On November 2, 1998, H.R. 4110 was presented to the 
President. On November 11, 1998, the President signed H.R. 4110 
into law as Public Law 105-368, the ``Veterans Programs 
Enhancement Act of 1998.''
    Finally, as discussed above, subtitle B of Title VIII of 
the ``Transportation Equity Act for the 21st Century'' (Public 
Law 105-178), contained provisions which barred VA compensation 
for tobacco-related disabilities. It also contained the 
following additional provisions relating to VA compensation: a 
provision at section 8204 specifying that the maximum amount 
that can be provided by VA as a grant for specially adapted 
housing be increased from $38,000 to $43,000; a provision at 
section 8206 specifying that the maximum amount that can be 
provided by VA as a grant for an automobile and adaptive 
automotive equipment be increased from $5,500 to $8,000; and a 
provision at section 8207 specifying that, in cases where a 
previously eligible surviving spouse has lost eligibility for 
DIC benefits due to remarriage, eligibility will be restored if 
the subsequent (and disqualifying) marriage is dissolved by 
death, divorce, or annulment.

                        IV. VA Pension Programs


                              a. overview

    VA pension programs provide needs-based income security 
benefits to wartime veterans who are totally and permanently 
disabled due to non-service-connected causes or who have become 
unemployable, and to the needy surviving spouses and children 
of such veterans. As of the end of calendar year 1998, an 
estimated 387,256 veterans, 268,793 surviving spouses, and 
30,555 surviving children were in receipt of VA pension.
    Congress has also enacted a non-needs-based program for the 
payment of a special pension to persons listed on the ``Army, 
Navy, Air Force, and Coast Guard Medal of Honor Roll.''

                            B. FIRST SESSION

    On May 8, 1997, Senator Dirk Kempthorne introduced S. 730, 
a bill to make retroactive, to certain Medal of Honor 
recipients, the special pension provided for persons entered 
and recorded on Army, Navy, Air Force, and Coast Guard Medal of 
Honor Roll. Those recipients were three individuals who were 
presented the Medal of Honor in January 1997, for acts of 
gallantry during World War II.
    On July 25, 1997, the Committee held a hearing on S. 730 
and other pending legislation. At that hearing, the Committee 
received testimony from VA and various veterans service 
organizations.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 730. On that date, the 
Committee voted to report S. 730 favorably to the Senate. No 
further action was taken on S. 730 by the Committee during the 
First Session. However, provisions essentially identical to 
those of S. 730, as ordered reported by the Committee on 
October 7, 1997, were contained in section 577 of the 
``National Defense Authorization Act for Fiscal Year 1998,'' 
presented to the President on November 6, 1997, and signed into 
law by the President as Public Law 105-85 on November 18, 1997.
    On July 15, 1997, Chairman Specter introduced S. 1017 at 
the request of the Administration. S. 1017 would have 
reinstated a previously repealed presumption that veterans over 
the age of 65 who are in nursing homes are permanently and 
totally disabled for purposes of eligibility for pension 
benefits. No action was taken on S. 1017 during the 105th 
Congress.

                           C. SECOND SESSION

    On July 28, 1998, the Committee met in open session to 
consider pending legislation. Among the bills considered was S. 
730, as amended. As amended, the bill would have, among other 
things, increased from $400 to $600 per month the amount of the 
special pension paid to persons on the Army, Navy, Air Force, 
and Coast Guard Medal of Honor Roll. In addition, it would 
have, for years after the year of enactment, indexed the 
special pension to provide for an ``automatic'' annual 
adjustment to the pension equal to the percentage increase (or 
decrease) provided to Social Security benefits recipients under 
title II of the Social Security Act. On that date, the 
Committee voted to report S. 730, as amended, favorably to the 
Senate. On September 21, 1998, the bill was reported (S. Rept. 
105-339).
    As noted above, on August 3, 1998, the House passed a 
measure, H.R. 4110, containing a cost-of-living adjustment in 
compensation and DIC rates and a number of other provisions 
relating to veterans' educational benefits, the Court of 
Veterans Appeals, and other matters. On September 30, 1998, the 
Senate amended H.R. 4110 to substitute the text of S. 2273, a 
cost-of-living adjustment bill, as reported by the Committee, 
and then passed H.R. 4110, by voice vote, as so amended. On 
October 10, 1998, the House agreed to the Senate amendment to 
H.R. 4110 and further amended the bill to add to it a number of 
provisions. Among them was a provision (at section 301) to 
increase the Medal of Honor special pension from $400 to $600 
per month. H.R. 4110 as so amended, however, did not include a 
provision to ``index'' the special pension. On October 21, 
1998, the Senate agreed to the House amendments, clearing the 
measure for the President. On November 2, 1998, H.R. 4110 was 
presented to the President. On November 11, 1998, the President 
signed H.R. 4110 into law as Public Law 105-368, the ``Veterans 
Programs Enhancement Act of 1998.''
    Finally, as detailed in section II.B., above, subtitle B of 
Title VIII of the ``Transportation Equity Act for the 21st 
Century'' (Public Law 105-178), contained provisions which 
barred VA compensation for tobacco-related disabilities. It 
also contained a provision relating to VA pension: section 8206 
of the ``Transportation Equity Act for the 21st Century'' 
increased by $600 annually the allowances provided to pension-
eligible veterans in need of regular aid and attendance under 
sections 1521 and 1536 of title 38, United States Code.

                             V. Health Care


                              A. OVERVIEW

    VA administers a national health care system which provides 
complete medical, hospital, and rehabilitative services for the 
care and treatment of eligible veterans. The VA health care 
system is a national system of teaching hospitals, general and 
specialty clinics, research centers, nursing homes, 
readjustment counseling centers, and other facilities, 
providing a broad range of inpatient and outpatient health care 
services to eligible veterans.
    In fiscal year 1997, VA provided health care through 22 
Veterans Integrated Service Networks (VISNs) comprised of 172 
hospitals (down from 173 in fiscal year 1996), 438 outpatient 
clinics (up from 398), 131 nursing home units (down from 133), 
and 40 domiciliary care facilities (unchanged from fiscal year 
1996). As part of its national health care network, the VA 
health care system also provides mental health services to 
eligible veterans through 206 readjustment counseling centers 
(Vet Centers). In fiscal year 1997, VA provided inpatient care 
to 826,846 inpatients (down from 960,524 in fiscal year 1996) 
and conducted 31.92 million outpatient visits (up from 29.85 
million in fiscal year 1996) in VA and contract facilities.
    All veterans are eligible to receive VA medical care 
services. Certain veterans, however, are entitled to priority 
access, as specified in the ``Veterans' Health Care Eligibility 
Reform Act of 1996'' (Title I of Public Law 104-262), in the 
following order of priority:
    1. VA ``shall furnish'' (to the extent of, and as provided 
in advance by, appropriations) hospital care and medical 
services, and ``may furnish'' nursing home care, to all 
service-connected veterans for their service-connected 
conditions;
    2. VA ``shall furnish'' (to the extent of, and as provided 
in advance by, appropriations), hospital care and medical 
services, and ``may furnish'' nursing home care, to veterans 
with service-connected disabilities rated at 50 percent or 
above for all conditions;
    3. VA ``shall furnish'' (to the extent of, and as provided 
in advance by, appropriations), hospital care and medical 
services, and ``may furnish'' nursing home care, to:
    (a) veterans with service-connected disabilities rated at 
less than 50 percent;
    (b) veterans whose discharge from service was due to 
disability incurred or aggravated in the line of duty;
    (c) veterans receiving (or entitled to receive) 
compensation for disabilities incurred while receiving medical 
care from VA;
    (d) former prisoners of war;
    (e) veterans of the Mexican border period or World War I;
    (f) veterans exposed to toxic substances, radiation, or 
environmental hazards; and
    (g) veterans unable to defray the expenses of care;
    4. VA may provide hospital care, medical services, and 
nursing home care to other veterans to the extent resources and 
facilities are available, but subject to the requirement that 
the veteran make ``copayments'' as specified by statute.
    The statute further specified that VA would establish a 
system under which veterans would be annually enrolled for VA 
care in the following order of priority:
    1. Veterans with service-connected disabilities rated 50 
percent or higher;
    2. Veterans with service-connected disabilities rated 30 
percent or 40 percent;
    3. Veterans who are former prisoners of war, veterans with 
service-connected disabilities rated 10 percent or 20 percent, 
veterans discharged from service for a disability incurred or 
aggravated in the line of duty, and veterans receiving (or 
entitled to receive) compensation for disabilities incurred 
while receiving medical care or vocational rehabilitation 
services from VA;
    4. Veterans who are receiving increased pension due to 
their need for regular aid and attendance or by reason of being 
permanently housebound, and other veterans who are 
catastrophically disabled;
    5. Veterans unable to defray the expenses of necessary care 
as determined by an income falling below a means-tested 
threshold;
    6. Veterans of the Mexican border period or World War I, 
and veterans exposed to toxic substances, radiation, or 
environmental hazards; and
    7. All other veterans.
    Finally, section 8104(a)(2) of title 38, United States 
Code, provides that no funds may be appropriated for any fiscal 
year, and VA may not obligate or expend funds (other than for 
advance planning or design), for any major medical facility 
project or any major medical facility lease, unless funds for 
that project or lease have been specifically authorized by law.

                            B. FIRST SESSION

1. Persian Gulf War Veterans

    As noted above, the Committee held 12 hearings during the 
First Session of the 105th Congress on issues related to 
Persian Gulf War veterans. During the majority of those 
hearings--particularly those at which VA or DOD witnesses 
appeared, and those at which veterans and their family members 
appeared--significant attention was devoted to VA and DOD 
programs for meeting the health care needs of Persian Gulf War 
veterans. Also as noted above, during the First Session of the 
105th Congress, the Committee launched its SIU investigation 
into issues raised by Persian Gulf War veterans.
    As detailed in section III.B.3, above, one bill relating to 
Persian Gulf War veterans' health care issues was introduced 
during the First Session: S. 1320, the proposed ``Persian Gulf 
War Veterans Act of 1997,'' introduced by Ranking Minority 
Member Rockefeller on October 24, 1997. No action was taken on 
S. 1320 during the First Session.

2. Priority Access to VA Medical Care

    On February 27, 1997, Senator Charles S. Robb introduced S. 
374, to extend eligibility for hospital care and medical 
services to veterans who have been awarded the Purple Heart, 
and for other purposes. S. 374 would have created a new 
category of priority for access to VA health care services: 
veterans who were recipients of the Purple Heart. Under S. 374, 
such veterans would have been placed in the priority scheme 
outlined above in a priority category above veterans unable to 
defray the expenses of care and below those who had been 
exposed to toxic substances, radiation, or environmental 
hazards in service.
    The Committee took no action on S. 374 during the 105th 
Congress.

3. Medical Personnel Matters

    On January 21, 1997, Senator Daniel K. Inouye introduced S. 
161, a bill to revise certain provisions relating to the 
appointment of clinical and counseling psychologists in the 
Veterans Health Administration, and for other purposes. The 
bill would have modified statutory restrictions relating to the 
employment of psychologists by VA. No action was taken on S. 
161 during the 105th Congress.
    On May 15, 1997, the Committee held a hearing on alleged 
sexual harassment in VA. The Committee received testimony from 
Senator Lauch Faircloth; four VA employees claiming to have 
been victims of sexual harassment in VA; VA management 
witnesses; VA's Acting Inspector General; the Director of the 
Office of Federal Operations of the Equal Employment 
Opportunity Commission (EEOC); and representatives of two 
Federal employee unions.
    On May 23, 1997, Senator Bob Graham introduced S. 801, the 
proposed ``Department of Veterans Affairs Employment 
Discrimination Prevention Act.'' As introduced, S. 801 would 
have:
    1. Created within VA an Office of Employment Discrimination 
Complaint Resolution (OEDCR) headed by an official reporting 
directly to VA's Secretary or Deputy Secretary;
    2. Provided that the OEDCR would be responsible for VA's 
employment discrimination complaint resolution process;
    3. Provided that OEDCR's decisions would be final agency 
decisions on discrimination complaints, appealable to EEOC or 
the appropriate United States District Court;
    4. Provided for the appointment of administrative law 
judges, investigators, and counselors by OEDCR;
    5. Established a process for filing, investigating and 
evaluating complaints of employment discrimination and sexual 
harassment; and
    6. Extended ``whistleblower'' protections to Veterans 
Health Administration employees.
    On July 25, 1997, the Committee held a hearing on S. 801 
and other pending legislation. At that hearing, the Committee 
received testimony from VA and various veterans service 
organizations.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 801, as amended. As amended, 
the bill would have:
    1. Mandated that VA establish an ``objective, fair, and 
effective'' employment discrimination dispute resolution 
process;
    2. Created an attorney-staffed Office of Employment 
Discrimination Complaint Adjudication to issue final agency 
decisions on all employment discrimination complaints;
    3. Mandated that, in cases where a senior VA official is 
accused of employment discrimination, employee complaints would 
be investigated by VA's Inspector General;
    4. Required that, in other cases, counseling and 
investigation functions would continue to be provided by an 
independent, full-time cadre of professional staff at the 
facility where the alleged harassment took place; and
    5. Required that an independent contractor monitor VA 
compliance and report to Congress in 18 months.
    On that date, the Committee voted to report S. 801 
favorably to the Senate.
    As detailed below, the Committee also voted on October 7, 
1997, to report S. 714, a bill pertaining to subject matter not 
related to S. 801. Subsequently, S. 714 was passed by the 
Senate (on November 5, 1997) and then amended, and passed, by 
the House (on November 9, 1997). Among the amendments added to 
S. 714 by the House was a provision, Title I of S. 714, as 
amended, which incorporated provisions derived from S. 801 as 
ordered reported by the Committee on October 7, 1997. On 
November 10, 1997, the Senate agreed to the House amendments to 
S. 714 (including Title I, incorporating provisions derived 
from S. 801), clearing the measure for the President. On 
November 13, 1997, S. 714, the ``Veterans' Benefits Act of 
1997,'' was presented to the President. On November 21, 1997, 
the President signed S. 714 into law (Public Law 105-114).

4. Construction Authorization and Property Management

    On February 12, 1997, Senator Daniel K. Akaka introduced S. 
309, a bill to prohibit the establishment or collection of 
parking fees by the Secretary of Veterans Affairs at any 
parking facility connected with a Department of Veterans 
Affairs medical facility operated under a health-care resources 
sharing agreement with the Department of Defense.
    On July 25, 1997, the Committee held a hearing on S. 309 
and other pending legislation. At that hearing, the Committee 
received testimony from VA and various veterans service 
organizations.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 309. On that date, the 
Committee voted to report S. 309 favorably to the Senate. No 
further action was taken on S. 309 by the Committee during the 
First Session.
    The Department of Veterans Affairs did not formally request 
legislation to authorize major medical facility construction 
projects or major medical facility leases during the First 
Session of the 105th Congress. Notwithstanding, when the 
Committee held the above-referenced hearing on July 25, 1997, 
it requested the views of VA and various veterans service 
organizations on a Committee Print that would have authorized 
$34.6 million in appropriations in fiscal years 1998 and 1999 
for major medical facility construction projects, and $14.323 
million in fiscal years 1998 and 1999 for major medical 
facility leases. The Committee Print also would have authorized 
the following projects:
    1. Completion of the seismic corrections construction 
project at the VAMC in Memphis, Tennessee;
    2. Leases for satellite outpatient clinics in Jacksonville, 
Florida; Boston, Massachusetts; Canton, Ohio; and Portland, 
Oregon; and
    3. Leases for information resources management field 
offices in Birmingham, Alabama; and Salt Lake City, Utah.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 986, as amended. As amended, 
S. 986 incorporated the construction authorization provisions 
summarized above. On that date, the Committee voted to report 
S. 986 favorably to the Senate, and on November 10, 1997, the 
bill was reported (S. Rept. 105-153).
    As detailed below, the Committee also voted to report S. 
714, a bill pertaining to subject matter not related to S. 986, 
on October 7, 1997. Subsequently, S. 714 was passed by the 
Senate (on November 5, 1997) and then amended, and passed, by 
the House (on November 9, 1997). Among the amendments added to 
S. 714 by the House was a provision, Title III of S. 714, as 
amended, which:
    1. Incorporated the construction authorization provisions 
of S. 986 as ordered reported by the Committee on October 7, 
1997;
    2. Added an authorization of seismic corrections and 
clinical improvements construction project at the McClellan 
Hospital at Mather Field, Sacramento, California;
    3. Added an authorization of an outpatient clinic 
improvements projects at Mare Island, Vallejo, California, and 
Martinez, California;
    4. Increased the major medical facility lease authorization 
for fiscal years 1998 and 1999 from $14.323 million to $15.705 
million; and
    5. Directed that the major construction projects in 
Sacramento, Vallejo, and Martinez, California be carried out 
only with previously appropriated funds.
    On November 10, 1997, the Senate agreed to the House 
amendments to S. 714 (including Title III), clearing the 
measure for the President. On November 13, 1997, S. 714, the 
``Veterans' Benefits Act of 1997,'' was presented to the 
President. On November 21, 1997, the President signed S. 714 
into law (Public Law 105-114).
    An additional construction authorization, relating to the 
construction of a parking garage in Cleveland, Ohio, was 
approved by the House and Senate, and presented and signed by 
the President, on June 12, 1997, as Chapter 10 of an ``Act 
Making Emergency Supplemental Appropriations for Recovery from 
Natural Disasters, and for Overseas Peacekeeping Efforts, 
including those in Bosnia, for the Fiscal Year ending September 
30, 1997, and for other purposes'' (Public Law 105-18).

5. Legislation to Extend Expiring Legal Authorities

    The Department of Veterans Affairs did not formally request 
legislation to reauthorize health care-related legal 
authorities scheduled to expire during 1997. Notwithstanding, 
when the Committee held a hearing on July 25, 1997, on pending 
legislation, it requested the views of VA and various veterans 
service organizations on a Committee Print that would have 
extended the following authorities scheduled to expire during 
1997:
    1. VA authority under 38 U.S.C. Sec. 1720A(e)(3) to 
contract for alcohol and drug abuse treatment services from 
halfway houses, therapeutic communities, psychiatric 
residential treatment centers, and other community-based 
treatment facilities;
    2. VA authority under 38 U.S.C. Sec. 1720C(a) to operate a 
pilot program to provide patients with noninstitutional 
alternatives to nursing home care;
    3. VA authority under 38 U.S.C. Sec. 3735(c) to convey 
acquired real property to nonprofit organizations for shelters 
primarily for homeless veterans and their families;
    4. VA authority under 38 U.S.C. Sec. 7618 to carry out a 
Health Professional Scholarship Program;
    5. VA authority under 38 U.S.C. Sec. 8169 to enter into 
enhanced use leases of VA real property;
    6. VA authority under sections 7 and 8 of Public Law 102-54 
to conduct a demonstration program to provide compensated work 
therapy and therapeutic transitional housing to homeless 
veterans;
    7. VA authority under sections 2, 4 and 12 of Public Law 
102-590 to (a) operate up to eight demonstration programs for 
the provision of comprehensive services to homeless veterans, 
and (b) make grants to public or nonprofit entities for the 
provision of outreach, rehabilitative, vocational counseling 
and training, and transitional housing assistance services to 
homeless veterans; and
    8. Department of Labor authority under 42 U.S.C. 
Sec. 11450, commonly referred to as the ``McKinney Act,'' to 
conduct, directly or through grants, homeless veterans' 
reintegration projects.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 714, as amended. As amended, 
S. 714 incorporated the reauthorizations summarized above. On 
that date, the Committee voted to report S. 714 favorably to 
the Senate, and on October 30, 1997, the bill was reported (S. 
Rept. 105-123). On November 5, 1997, S. 714 was passed by the 
Senate.
    On November 9, 1997, the House amended S. 714 without 
modifying the above-summarized reauthorization provisions, and 
then passed S. 714, as amended. On November 10, 1997, the 
Senate agreed to the House amendments to S. 714, clearing the 
measure for the President. On November 13, 1997, S. 714, the 
``Veterans' Benefits Act of 1997,'' was presented to the 
President. On November 21, 1997, the President signed S. 714 
into law (Public Law 105-114).

6. Technical Amendments and Corrections

        ``Veterans' Health Care Eligibility Reform Act of 1996''

    Enactment of the ``Veterans' Health Care Eligibility Reform 
Act of 1996'' (Public Law 104-262) by the 104th Congress put 
into place the ``enrollment by priority'' system of VA health 
care eligibility which is summarized in the Overview section 
above. Various ``eligibility reform'' proposals were considered 
by the Committee, among them S. 1345 (introduced by then-
Chairman Alan Simpson on October 19, 1995), S. 1563 (introduced 
by then-Chairman Simpson and Ranking Minority Member 
Rockefeller at the request of veterans service organizations on 
February 7, 1996), and H.R. 3118 (a bill passed by the House on 
July 30, 1996). The legislation was complex and, as enacted as 
Public Law 104-262, contained a number of technical errors.
    On July 25, 1997, the Committee held a hearing on pending 
legislation, including a Committee Print of draft legislation 
prepared by Committee staff with the technical assistance of 
VA. The Committee Print contained the following clarifications:
    1. Public Law 104-262 provided that veterans who had not 
been adjudicated as service-connected by VA, but who had been 
discharged from service due to a ``compensable'' disability, 
would have the same access to VA health care services as the 
service connected. The Committee subsequently learned that when 
service personnel are discharged for disability, it is not 
stated whether the disability is ``compensable.'' The 
clarification would have struck the term ``compensable'' to 
provide that veterans discharged from service due to 
disability, not due to ``compensable'' disability, would have 
priority access to VA care.
    2. Prior to enactment of Public Law 104-262, VA provided 
care for ``disabilities.'' Public Law 104-262, however, 
authorized VA to provide care without regard to whether that 
care addressed a particular ``disability.'' A separate 
authority, 38 U.S.C. Sec. 1717(a), under which VA provides home 
health care services, carries over the requirement that care 
address a ``disability,'' creating a legal situation whereby 
hospital care, outpatient care, and other health care services 
need not address a ``disability,'' but home health services 
must. The clarification would have struck the reference to a 
``disability'' in section 1717(a).
    3. Prior to passage of Public Law 104-262, section 1720 of 
title 38, United States Code, had authorized VA to transfer VA 
inpatients to non-VA nursing home care, and that provision of 
law had been unaffected by Public Law 104-262. One of the 
premises of eligibility reform, however, had been to remove 
nonclinical reasons for placing patients into inpatient care. 
That premise was countered by section 1720's requirement that a 
patient be placed into inpatient care before he or she could be 
referred to non-VA nursing home care. The clarification would 
have modified section 1720 to allow VA patients, not VA 
``hospital, nursing home, or domiciliary'' patients, to be so 
transferred.
    4. Public Law 104-262 had repealed a previously imposed 
``sunset'' of VA authority to provide adult day health care 
(ADHC) services, but that authority allowed such services to be 
provided only to patients to whom VA had authority to provide 
contract nursing home care services. The intent of eligibility 
reform had been to afford VA flexibility to provide the 
medically appropriate level of care, whatever that type of care 
might be, to all enrolled VA patients. The clarification would 
have eliminated the requirement that patients be eligible for 
contract nursing home care services before they could receive 
ADHC services and would have allowed such services under VA's 
general authority to provide ``hospital care and medical 
services'' to enrolled, eligible veterans.
    5. Section 8153 of title 38, United States Code, as amended 
by Public Law 104-262, authorized VA to enter into ``sharing 
agreements'' with non-VA health care providers ``without regard 
to any law or regulation that would otherwise require the use 
of competitive procedures for procuring the resource.'' Public 
Law 104-262, however, was ambiguous in terms of the intended 
scope of the term ``regulation.'' The clarification would have 
removed this ambiguity by adding the words ``(including any 
Executive Order, circular, or other administrative policy)'' to 
amplify the meaning of ``regulation'' as adopted by Public Law 
104-262.
    6. Public Law 104-262 authorized VA to adopt ``simplified 
procedures'' to administer its ``sharing agreement'' authority. 
The statute, however, directed that VA's simplified procedures 
``permit all responsible sources'' to compete. The 
clarification would have eliminated the requirement that 
``all'' be allowed to compete and allow VA to limit the number 
of bids it would consider.
    7. VA had been authorized, under its ``sharing agreement'' 
authority, to provide care to other providers' nonveteran 
patients in return for reciprocal arrangements, but such 
reciprocal arrangements had to provide that veterans would 
receive priority care in the non-VA sharing agreement partner's 
facility. This requirement discouraged such arrangements. 
Accordingly, the clarification would have required only that 
all such agreements not diminish care to veterans.
    At the July 25, 1997, hearing, the Committee received 
testimony from VA and various veterans service organizations.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 986, as amended. As amended, 
S. 986 incorporated the clarifications to the ``Veterans' 
Health Care Eligibility Reform Act of 1996'' summarized above. 
On that date, the Committee voted to report S. 986 favorably to 
the Senate, and on November 10, 1997, the bill was reported (S. 
Rept. 105-153).
    On October 7, 1997, the Committee also voted to report S. 
714, a bill pertaining to subject matter not related to S. 986. 
Subsequently, S. 714 was passed by the Senate (on November 5, 
1997) and then amended, and passed, by the House (on November 
9, 1997). Among the amendments added to S. 714 by the House was 
a provision, section 402, which contained the following of the 
above-summarized clarifications:
    1. The clarification striking the term ``compensable'' to 
allow health care access to veterans discharged from service 
due to disability;
    2. The clarification striking the reference to a veteran's 
``disability'' in the home health care eligibility statute;
    3. The clarification modifying 38 U.S.C. Sec. 1720 to allow 
VA patients--not VA ``hospital, nursing home, or domiciliary'' 
patients--to be transferred to non-VA nursing home care;
    4. The clarification of the term ``regulation'' in VA's 
``sharing agreement'' authority; and
    5. The clarification allowing VA to limit the number of 
prospective partners who might compete to participate in VA 
``sharing agreements.''
    On November 10, 1997, the Senate agreed to the House 
amendments to S. 714, clearing the measure for the President. 
On November 13, 1997, S. 714, the ``Veterans' Benefits Act of 
1997,'' was presented to the President. On November 21, 1997, 
the President signed S. 714 into law (Public Law 105-114).
    No further action was taken on the remaining clarifications 
during the 105th Congress.

Act Making Fiscal Year 1997 Appropriations for the Departments of 
        Veterans Affairs, and Housing and Urban Development, and for 
        Sundry Independent Agencies

    As summarized above, the 104th Congress mandated that the 
following benefits be provided to Vietnam veterans' children 
who are born with spina bifida as part of Public Law 104-204 
(September 26, 1996):
    1. Payment of a monthly monetary allowance, varying by 
degree of disability suffered by the child;
    2. Health care for any disability associated with the 
person's spina bifida; and
    3. Vocational training, job placement and post-job-
placement services.
    On July 15, 1997, Chairman Specter introduced S. 1018 at 
the request of the Administration. S. 1018 would have made 
technical and clarifying amendments to those provisions of 
Public Law 104-204.
    On October 7, 1997, the Committee voted to report S. 714, a 
bill not related to S. 1018, but which was subsequently amended 
by the House, as summarized above. Included in those amendments 
were technical and clarifying amendments derived from S. 1018. 
On November 10, 1997, the Senate agreed to the House amendments 
to S. 714, clearing the measure for the President. On November 
13, 1997, S. 714, the ``Veterans' Benefits Act of 1997,'' was 
presented to the President. On November 21, 1997, the President 
signed S. 714 into law (Public Law 105-114).

7. Other Health Care Legislation

    As noted above, on July 7, 1997, Chairman Specter 
introduced S. 987 at the request of the Administration. S. 987 
would have authorized VA to make a cost-of-living adjustment in 
compensation and DIC benefits. S. 987 also contained other 
provisions, among them one to authorize VA's Veterans Benefits 
Administration (VBA) to reimburse VA's Veterans Health 
Administration (VHA) for costs incurred in providing medical 
examinations to veterans in connection with applications for 
compensation or other benefits.
    On July 25, 1997, the Committee held a hearing on S. 987 
and other pending legislation. At that hearing, the Committee 
received testimony from VA and various veterans service 
organizations.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 987, as amended. As amended, 
S. 987 excised the authorization of intra-VA fund transfers for 
VHA-provided medical exams in connection with applications for 
compensation or other benefits. Those provisions, however, were 
added to S. 986, as amended, which was also considered during 
the Committee's October 7, 1997, meeting. The Committee voted 
to report S. 986, as amended to include those provisions, 
favorably to the Senate, and on November 10, 1997, the bill was 
reported (S. Rept. 105-153).
    As noted above, certain provisions of S. 986 were 
incorporated into S. 714 when that bill was amended by the 
House on November 9, 1997, and, later, enacted as Public Law 
105-114. A provision authorizing intra-VA fund transfers for 
VHA-provided medical exams in connection with applications for 
compensation or other benefits was not included in S. 714 as so 
amended by the House.
    On July 9, 1997, Chairman Specter introduced S. 999, a bill 
to specify the frequency of VA-provided screening mammograms to 
women veterans.
    On July 25, 1997, the Committee held a hearing on S. 999 
and other pending legislation. At that hearing, the Committee 
received testimony from VA and various veterans service 
organizations.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 999. On that date, the 
Committee voted to report S. 999 favorably to the Senate, and 
on November 13, 1997, the bill was reported (S. Rept. 105-158).
    As has been detailed, the Committee also voted on October 
7, 1997, to report S. 714, a bill pertaining to subject matter 
not related to S. 999. Subsequently, S. 714 was passed by the 
Senate (on November 5, 1997) and then amended, and passed, by 
the House (on November 9, 1997). Among the amendments added to 
S. 714 by the House was a provision, section 208, which 
incorporated provisions derived from S. 999 as ordered reported 
by the Committee on October 7, 1997. On November 10, 1997, the 
Senate agreed to the House amendments to S. 714 (including 
section 208, incorporating provisions derived from S. 999), 
clearing the measure for the President. On November 13, 1997, 
S. 714, the ``Veterans' Benefits Act of 1997,'' was presented 
to the President. On November 21, 1997, the President signed S. 
714 into law (Public Law 105-114).
    As also noted above, on October 7, 1997, the Committee met 
in open session to consider, among other things, S. 986, as 
amended. As amended, S. 986 included a provision requiring the 
President to report, not later than March 1, 1998, on Federal, 
State, and local plans for responding to medical emergencies 
arising from potential use by terrorists of weapons of mass 
destruction, and VA's role in such preparations. On that date, 
the Committee voted to report S. 986 favorably to the Senate, 
and on November 10, 1997, the bill was reported (S. Rept. 105-
153).
    On October 7, 1997, the Committee also voted to report S. 
714, a bill pertaining to subject matter not related to S. 986. 
Subsequently, S. 714 was passed by the Senate (on November 5, 
1997) and then amended, and passed, by the House (on November 
9, 1997). Among the amendments added to S. 714 by the House was 
a provision, section 210, which incorporated provisions derived 
from S. 986 requiring a Presidential report on weapons of mass 
destruction preparedness. On November 10, 1997, the Senate 
agreed to the House amendments to S. 714 (including section 
210, incorporating provisions derived from S. 986), clearing 
the measure for the President. On November 13, 1997, S. 714, 
the ``Veterans' Benefits Act of 1997,'' was presented to the 
President. On November 21, 1997, the President signed S. 714 
into law (Public Law 105-114).

                           C. SECOND SESSION

1. Persian Gulf War Veterans

    As detailed in section III.C.2., on July 27, 1998, Ranking 
Minority Member Rockefeller introduced S. 2358, the proposed 
``Persian Gulf War Veterans Act of 1998,'' a bill which 
incorporated, and added to, provisions contained in S. 1320. 
Like S. 1320, S. 2358 would have:
    1. Codified VA authority to designate, based on sound 
medical and scientific evidence, diagnosed and undiagnosed 
illnesses presumed to be associated with Persian Gulf War 
service;
    2. Compelled VA to enter into an agreement with NAS to (a) 
identify environmental and other agents to which Persian Gulf 
War veterans had been exposed; (b) identify illnesses which 
Persian Gulf War veterans suffer; (c) analyze associations, if 
any, between various environmental exposures and disease; and 
(d) analyze potential treatment models;
    3. Compelled VA to monitor the health status of Persian 
Gulf War veterans; and
    4. Required the establishment of research and outreach 
programs to assist veterans of the Persian Gulf War.
    In addition, S. 2358 would have:
    1. Extended VA authority to provide priority access for 
care for Persian Gulf War veterans' ``undiagnosed illnesses'' 
to December 31, 2001; and
    2. Extended VA authority to conduct diagnostic testing and 
medical examinations of Persian Gulf War veterans' spouses and 
children.
    On July 28, 1998, the Committee met in open session to 
consider, among other things, S. 2358. On that date, the 
Committee voted to report S. 2358 favorably to the Senate, and 
on October 2, 1998, the bill was reported (S. Rept. 105-362).
    As detailed in section III.C.2., above, on August 3, 1998, 
the House passed H.R. 4110, and on September 30, 1998, the 
Senate amended H.R. 4110 to substitute the text of S. 2358. The 
Senate then passed H.R. 4110, by voice vote, as so amended. On 
October 10, 1998, the House agreed to the Senate amendment to 
H.R. 4110 and further amended the bill to add a number of other 
provisions. Among the provisions added to H.R. 4110 were 
provisions (at Title I) derived from S. 2358, the proposed 
``Persian Gulf War Veterans Act of 1998.'' On October 21, 1998, 
the Senate agreed to the House amendments, clearing the measure 
for the President. On November 2, 1998, H.R. 4110 was presented 
to the President. On November 11, 1998, the President signed 
H.R. 4110 into law as Public Law 105-368, the ``Veterans 
Programs Enhancement Act of 1998.''
    As also detailed in section III.C.2., above, provisions 
similar to those contained in Title I of the ``Veterans 
Programs Enhancement Act of 1998'' were included, as the 
``Persian Gulf War Veterans Act of 1998,'' in Title XVI of 
Division C of Public Law 105-277, an ``Act Making Omnibus 
Consolidated and Emergency Supplemental Appropriations for 
Fiscal Year 1999,'' which was approved by the Senate, and 
signed by the President, before those actions were taken with 
respect to the ``Veterans Programs Enhancement Act of 1998.''

2. Construction Authorization and Property Management

    On April 30, 1998, Senator Graham (for himself and Senator 
Mack) introduced S. 2012, to name the Department of Veterans 
Affairs medical center in Gainesville, Florida, the ``Malcom 
Randall Department of Veterans Affairs Medical Center.''
    On September 17, 1998, Chairman Specter introduced S. 2496, 
to designate the Department of Veterans Affairs medical center 
in Aspinwall, Pennsylvania, as the ``H. John Heinz III 
Department of Veterans Affairs Medical Center.''
    On October 2, 1998, Senator DeWine (for himself and Senator 
Glenn) introduced S. 2541, to name the Department of Veterans 
Affairs outpatient clinic in Columbus, Ohio, the ``Chalmers P. 
Wylie Veterans Outpatient Clinic.''
    The Department of Veterans Affairs did not formally request 
legislation to authorize major medical facility construction 
projects or major medical facility leases during the Second 
Session of the 105th Congress.
    On July 28, 1998, the Committee met in open session to 
consider, among other things, S. 1822, as amended to 
incorporate a provision to designate the Department of Veterans 
Affairs medical center in Aspinwall, Pennsylvania, the ``H. 
John Heinz III Department of Veterans Affairs Medical Center'' 
(which provision was substantially the same as that contained 
in S. 2496) and, in addition, the following provisions relating 
to VA medical construction and property management:
    1. Authorization of major medical construction projects in 
San Juan, Puerto Rico; Long Beach, California; Lebanon, 
Pennsylvania; and Auburn and Merced, California;
    2. Authorization of a major medical (parking garage) 
project in Denver, Colorado;
    3. Authorization of major medical leases in Oakland Park, 
Florida; Daytona Beach, Florida; and Baton Rouge, Louisiana;
    4. A provision to raise the amount of a lease deemed to be 
``major,'' and which thereby triggers the requirement for a 
separate statutory authorization, from $300,000 per year to 
$600,000 per year; and
    5. A provision to require that VA report on land use issues 
at the West Los Angeles VA Medical Center.
    On that date, the Committee voted to report S. 1822, as so 
amended, favorably to the Senate. On September 22, 1998, the 
bill was reported (S. Rept. 105-344).
    As detailed above, on August 3, 1998, the House passed H.R. 
4110, and on September 30, 1998, the Senate amended H.R. 4110 
to substitute the text of S. 2273, and then passed H.R. 4110, 
by voice vote, as so amended. On October 10, 1998, the House 
agreed to the Senate amendment to H.R. 4110 and further amended 
the bill to add a number of other provisions. Among the 
provisions so added were the above-summarized provisions 
reported by the Committee on September 22, 1998. In addition, 
the House added the following provisions relating to VA medical 
construction and property management to H.R. 4110:
    1. Authorization of major medical construction projects in 
Washington, D.C.; Palo Alto, California; Cleveland (Wade Park), 
Ohio; Tucson, Arizona; Dallas, Texas; and Tampa, Florida;
    2. A provision raising the cost of a parking garage 
construction project deemed to be ``major,'' and which thereby 
triggers the requirement for a separate statutory 
authorization, from $3 million to $4 million;
    3. A provision derived from S. 309 to ban staff parking 
fees at the Spark M. Matsunaga Department of Veterans Affairs 
Medical and Regional Office Center in Honolulu, Hawaii;
    4. A provision requiring VA to report on issues pertaining 
to charging VA employees for parking;
    5. A provision derived from S. 2012, to name the Department 
of Veterans Affairs medical center in Gainesville, Florida, the 
``Malcom Randall Department of Veterans Affairs Medical 
Center''; and
    6. A provision derived from S. 2541, naming the Department 
of Veterans Affairs outpatient clinic in Columbus, Ohio, the 
``Chalmers P. Wylie Veterans Outpatient Clinic.''
    On October 21, 1998, the Senate agreed to the House 
amendments, clearing the measure for the President. On November 
2, 1998, H.R. 4110 was presented to the President. On November 
11, 1998, the President signed H.R. 4110 into law as Public Law 
105-368, the ``Veterans Programs Enhancement Act of 1998.''

3. Other Medical Care and Medical Administration Matters

    On March 23, 1998, Chairman Specter (for himself and 
Ranking Minority Member Rockefeller and Senators Thurmond, 
Jeffords, Murkowski, Akaka, Wellstone, Lieberman, and Murray) 
introduced S. 1822, to authorize the provision of health care 
services to veterans who had been treated in service with 
nasopharyngeal radium irradiation.
    On May 22, 1998, Ranking Minority Member Rockefeller (for 
himself and Senator Mikulski) introduced S. 2115, the proposed 
``Department of Veterans Affairs Primary Care Providers 
Incentive Act of 1998.'' The bill would have established 
scholarship and education loan debt reduction programs at VA to 
facilitate the employment of primary care and other health care 
professionals by the Veterans Health Administration.
    On October 10, 1998, Senator Daschle introduced S. 2619, 
the proposed ``Veterans' Access to Emergency Care Act of 
1998.'' The bill would have improved access of veterans to 
emergency medical care in non-VA medical facilities.
    On July 28, 1998, the Committee met in open session to 
consider pending legislation. Among the measures considered was 
S. 1822, as amended to incorporate a number of additional 
provisions, but without modifying the bill's original 
provisions relating to the eligibility of veterans treated in 
service with nasopharyngeal radium irradiation for VA health 
care services. On that date, the Committee voted to report S. 
1822, as amended, favorably to the Senate. On September 22, 
1998, S. 1822 was reported (S. Rept. 105-344).
    As noted above, on August 3, 1998, the House passed H.R. 
4110, and on September 30, 1998, the Senate amended H.R. 4110 
to substitute the text of S. 2273, and then passed H.R. 4110, 
by voice vote, as so amended. On October 10, 1998, the House 
agreed to the Senate amendment to H.R. 4110 and further amended 
the bill to add a number of other provisions. Among the 
provisions so added to H.R. 4110 were:
    1. A provision (at section 901) derived from S. 1822, 
relating to the eligibility of veterans treated in service with 
nasopharyngeal radium irradiation for VA health care services;
    2. Provisions (at title VIII) derived from S. 2115, the 
proposed ``Department of Veterans Affairs Primary Care 
Providers Incentive Act of 1998'';
    3. A provision (at section 902) extending VA authority to 
counsel and provide medical treatment to veterans who were 
victims of sexual trauma in service;
    4. A provision (at section 903) requiring VA to develop 
job-performance standards for officials responsible for the 
management of resources relating to special disability care 
programs;
    5. A provision (at section 904) authorizing VA use of 
forfeited pension funds to defray VA nursing home operating 
expenses;
    6. A provision (at section 905) requiring that VA submit to 
Congress a report on nurse locality pay issues;
    7. A provision (at section 906) requiring that VA report to 
Congress annually on activities relating to preparation for and 
participation in programs for emergency medical response to 
domestic attacks with weapons of mass destruction; and
    8. A provision authorizing the interim appointment of the 
Under Secretary for Health (until June 30, 1999).
    On October 21, 1998, the Senate agreed to the House 
amendments, clearing the measure for the President. On November 
2, 1998, H.R. 4110 was presented to the President. On November 
11, 1998, the President signed H.R. 4110 into law as Public Law 
105-368, the ``Veterans' Programs Enhancement Act of 1998.''
    No action was taken on S. 2619, the proposed ``Veterans 
Access to Emergency Care Act of 1998'' during the 105th 
Congress.

VI. Readjustment, Educational Assistance, and Vocational Rehabilitation 
                                Benefits


                              A. OVERVIEW

    VA readjustment benefits consist of various types of 
assistance for eligible veterans, dependents, and survivors. 
The purposes of such assistance are to help the veteran 
readjust to civilian life in a productive capacity, to 
compensate for the loss of educational or vocational 
opportunities during the veteran's period of service, to 
provide incentives for military service, and to provide 
vocational rehabilitation opportunities to those whose ability 
to obtain employment has been impaired as a result of service-
connected disability.
    Vocational rehabilitation opportunities are provided under 
chapter 31 of title 38, United States Code, to service-
connected disabled veterans. Educational assistance is also 
provided by VA, under chapter 35 of title 38, to dependents of 
those veterans having permanent and total service-connected 
disabilities, and to the survivors of veterans whose deaths 
were service connected. Such assistance is intended to 
compensate for service-connected impairment of the veteran's 
ability to bear the cost of education for his or her family 
members and, in the case of the veteran's death, to assist the 
surviving spouse in attaining economic self-sufficiency. 
Finally, vocational training, job placement, and post-job-
placement services, as well as health care benefits and a 
monetary allowance, are provided to Vietnam veterans' children 
with spina bifida under chapter 18 of title 38, United States 
Code.
    Under chapter 30 of title 38, educational assistance is 
provided to members of the All-Volunteer Force who first 
entered active duty after June 30, 1985, and did not choose to 
decline to participate in this program. The rate of basic pay 
of those who participate in this program, commonly referred to 
as the Montgomery GI Bill, is reduced by $100 for each of the 
first 12 months of the servicemember's active duty service. 
During 1998, the monthly benefit for veteran students/trainees 
who had served at least three years and who were participating 
in full-time study was increased from $400 to $528 per month; 
for full-time-study veteran students/trainees whose enlistment 
terms were two years, the monthly benefit was increased from 
$325 to $429.
    Post-Vietnam-era veterans (those who entered the service 
after December 31, 1976, but before July 1, 1985, and who were 
otherwise eligible) were entitled to participate in the 
Veterans Education Assistance Program (VEAP) specified in 
chapter 32 of title 38. Under VEAP, participants contributed up 
to $2,300 to an education account, and these contributions were 
matched by the Department of Defense on a two-for-one basis 
when the veteran enrolled in an approved course of education. 
The ``Veterans' Benefits Improvement Act of 1996,'' Public Law 
104-275, authorized VEAP-eligible veterans to enroll for 
generally more advantageous Chapter 30 (Montgomery GI Bill) 
benefits.
    Until its expiration on December 31, 1989, educational 
assistance was provided under chapter 34 of title 38 to 
eligible Vietnam-era veterans, and to other veterans and 
servicemembers who served between February 1, 1955, and 
December 31, 1976, and who were otherwise eligible. Finally, VA 
administers a program for the educational assistance of members 
of the Selected Reserve under chapter 106 of title 10. That 
program is funded by the Departments of Defense and 
Transportation.
    In fiscal year 1998, approximately 296,791 All-Volunteer 
Force servicemembers and veterans received benefits under 
chapter 30 of title 38; 75,219 reservists received benefits 
under chapter 106 of title 10; 53,004 service-connected 
disabled veterans enrolled in rehabilitation under chapter 31 
of title 38; and 42,706 spouses, surviving spouses, and 
children received benefits under chapter 35 of title 38.

                            B. FIRST SESSION

    As outlined above, during the 104th Congress, provisions 
offering the following benefits to children of Vietnam veterans 
who are born with spina bifida were enacted as part of Public 
Law 104-204:
    1. Payment of a monthly monetary allowance, varying by 
degree of disability suffered by the child;
    2. Health care for any disability associated with the 
person's spina bifida; and
    3. Vocational training, job placement, and post-job-
placement services.
    On July 15, 1997, Chairman Specter introduced S. 1018 at 
the request of the Administration. S. 1018 would have made 
technical and clarifying amendments to these provisions of 
Public Law 104-204. As noted above, on October 7, 1997, the 
Committee voted to report S. 714, a bill not related to S. 
1018. Subsequently, S. 714 was passed by the Senate (on 
November 5, 1997) and then amended, and passed, by the House 
(on November 9, 1997). Among the amendments added to S. 714 by 
the House were technical and clarifying amendments (at section 
404) derived from S. 1018. On November 10, 1997, the Senate 
agreed to the House amendments to S. 714, clearing the measure 
for the President. On November 13, 1997, S. 714, the 
``Veterans' Benefits Act of 1997,'' was presented to the 
President. On November 21, 1997, the President signed S. 714 
into law (Public Law 105-114).
    In addition to the technical and clarifying amendments 
introduced in S. 1018, the Committee considered the following 
additional technical and clarifying amendments to the 
``Veterans' Benefits Improvements Act of 1996'' (Public Law 
104-275) at its hearing on July 25, 1997:
    1. Technical amendments to Public Law 104-275 modifications 
to the ``two year'' rule (specifying that non-degree-granting 
institutions must have operated for two years before veterans 
will be eligible for benefits while attending such 
institutions);
    2. A technical correction to Public Law 104-275 
modifications to provisions governing the circumstances when 
educational assistance benefits will be paid to veterans taking 
open circuit television courses as part of in-residence study;
    3. A technical correction to Public Law 104-275 
modifications to provisions governing eligibility for benefits 
while attending ``cooperative training programs;'' and
    4. Technical corrections to Public Law 104-275 
modifications to provisions governing a veteran's conversion 
from eligibility for Post-Vietnam Era educational assistance 
benefits to Montgomery GI Bill educational assistance benefits.
    The Committee received testimony from VA and various 
veterans service organizations at the July 25, 1997, hearing.
    On October 7, 1997, the Committee met in open session to 
consider pending legislation. Among the bills considered was S. 
986, as amended, to include, among other provisions, the 
technical amendments summarized above. The Committee voted to 
report S. 986, as amended, favorably to the Senate, and on 
November 10, 1997, the bill was reported (S. Rept. 105-153).
    As detailed above, some provisions derived from S. 986, as 
amended, were incorporated into amendments to S. 714 when that 
bill was approved by the House on November 9, 1997. The above-
summarized technical and clarifying amendments were among the 
provisions added to S. 714 (in section 401). S. 714, as amended 
by the House was agreed to by the Senate on November 10, 1997, 
presented to the President on November 13, 1997, and signed 
into law, as the ``Veterans' Benefits Act of 1997'' (Public Law 
105-114) on November 21, 1997.

                           C. SECOND SESSION

    On July 8, 1998, Senator Bob Graham (for himself and for 
Senator Coverdell) introduced S. 2278, the proposed ``Veterans' 
Educational Benefits Protection Act of 1998.'' The bill would 
have barred the inclusion of veterans' educational assistance 
benefits for purposes of determining eligibility for Federal 
education financial aid programs.
    The Committee did not take action on S. 2278 during the 
105th Congress.
    No other bills relating to readjustment, educational 
assistance, or vocational rehabilitation benefits were referred 
to the Committee during the Second Session of the 105th 
Congress. As detailed above, however, on August 3, 1998, the 
House passed H.R. 4110, and on September 30, 1998, the Senate 
amended H.R. 4110 to substitute the text of S. 2273, and then 
passed H.R. 4110, by voice vote, as so amended. On October 10, 
1998, the House agreed to the Senate amendment to H.R. 4110 and 
further amended the bill to add a number of other provisions. 
Among the provisions so added to H.R. 4110 were:
    1. A provision (at section 201), derived from H.R. 4110 as 
originally passed by the House on August 3, 1998, modifying the 
way VA calculates certain fees paid to educational institutions 
that enroll veterans;
    2. A provision (at section 202), derived from H.R. 4110 as 
originally passed by the House, making it optional, rather than 
mandatory, for a veteran-student participating in a work-study 
program to elect an advance payment of 40 percent educational 
assistance benefits;
    3. A provision (at section 203), derived from H.R. 4110 as 
originally passed by the House, allowing servicemembers to use 
college-granted credit for life experience in meeting 
eligibility requirements for educational assistance benefits;
    4. A provision (at section 204), derived from H.R. 4110 as 
originally passed by the House, allowing veteran-students in 
flight training to continue to receive VA educational 
assistance if they inadvertently fail to maintain certain 
flight certificates;
    5. A provision (at section 205), derived from H.R. 4110 as 
originally passed by the House, waiving wage increase and 
minimum salary requirements for on-the-job training programs 
provided by State and local governments; and
    6. Provisions (at sections 206 and 207), derived from H.R. 
4110 as originally passed by the House, requiring VA and 
military service branches to expand outreach services.
    On October 21, 1998, the Senate agreed to the House 
amendments, clearing the measure for the President. On November 
2, 1998, H.R. 4110 was presented to the President. On November 
11, 1998, the President signed H.R. 4110 into law as Public Law 
105-368, the ``Veterans Programs Enhancement Act of 1998.''
    Finally, as detailed in section II.B., above, subtitle B of 
Title VIII of the ``Transportation Equity Act for the 21st 
Century'' (Public Law 105-178), which contained provisions 
barring the payment of disability compensation in cases where 
disability is the result of the use of tobacco products, also 
contained provisions increasing certain educational assistance 
and other readjustment benefits, as follows:
    1. Educational assistance benefits to veterans were 
increased 20 percent;
    2. Maximum adaptive housing assistance grants were 
increased from $38,000 to $43,000; and
    3. Maximum automobile and adaptive automobile equipment 
grants were increased from $5,500 to $8,000.
    The later-enacted ``Internal Revenue Service Restructuring 
and Reform Act of 1998'' (Public Law 105-206) added the 
following educational assistance program enhancements:
    1. A 20 percent increase in educational assistance benefits 
to certain veterans' survivors and dependents; and
    2. A 20 percent increase in benefits paid to veterans, and 
to survivors and dependents, for assistance in apprenticeship 
and on-the- job training programs.

                            VII. Employment


                              A. OVERVIEW

    The Department of Labor, Veterans' Employment and Training 
Service (VETS), has primary responsibility for the 
implementation of statutory provisions relating to veterans' 
employment. Section 4102 of title 38 states Congressional 
intent with respect to veterans' employment programs as 
follows: ``The Congress declares as its intent that there shall 
be an effective (1) job and job training counseling program, 
(2) employment placement service program, and (3) job training 
placement service program for eligible veterans and eligible 
persons . . .''
    Chapter 42 of title 38 provides for the employment and 
training of disabled and Vietnam-era veterans. Section 4212 
requires that certain Federal contractors and subcontractors 
take affirmative action to employ and advance in employment 
qualified special disabled veterans and veterans of the Vietnam 
era. Section 4214 provides for Veterans' Readjustment 
Appointments (VRAs) within the Federal Government to assist 
Vietnam veterans, service-disabled Vietnam-era veterans, and 
veterans who served after the Vietnam era, by (1) making it 
possible for them to be hired into Federal service 
noncompetitively, and (2) helping them develop additional 
skills through a program combining education and training with 
a regular career appointment.
    Chapter 43 of title 38 provides reemployment protection to 
certain veterans and reservists. Chapter 43 was recodified in 
1994 as the ``Uniformed Services Employment and Reemployment 
Rights Act of 1994'' (USERRA), Public Law 103-353.
    The Office of Personnel Management is responsible for 
implementing policies to promote maximum employment and job 
advancement opportunities within Federal service for qualified 
disabled and Vietnam-era veterans.

                            B. FIRST SESSION

    On July 16, 1997, Senator Chuck Hagel (for himself and for 
Senators Cleland, Hutchinson, Dorgan, Burns, Roth, Faircloth, 
Helms, Moynihan, Landrieu, Reid, and Campbell) introduced S. 
1021, the proposed ``Veterans Employment Opportunities Act of 
1997.'' The bill would have:
    1. Required that all Federal hiring competitions, except as 
otherwise specified, be opened to all ``preference eligible'' 
veterans--i.e., those who had served in a combat theater, and 
those who have service-connected disabilities;
    2. Afforded preference eligible veterans protections from 
reduction-in-force (RIF) personnel actions by barring the 
classification of any position occupied by a preference 
eligible veteran as a ``single position competitive level'' 
position;
    3. Afforded preference eligible veterans additional 
protections from reduction-in-force personnel actions by 
granting to preference eligible veterans certain additional 
``bumping'' rights;
    4. Required that agencies establish priority placement 
programs for ``RIF'ed'' veterans;
    5. Established new, uniform appeal procedures, including 
eased access to judicial remedies;
    6. Designated violations of veterans' preference laws as 
``prohibited personnel practices'';
    7. Extended veterans' preference rights to non-policy 
positions in the Executive Office of the President, the 
legislative and judicial branches, and the Federal Aviation 
Administration; and
    8. Expanded ``preference eligible'' status to veterans who 
had served in noncombat, hazardous areas.
    No formal action was taken on S. 1021 during the First 
Session of the 105th Congress.

                           C. SECOND SESSION

    On March 24, 1998, the Committee held a hearing on S. 1021. 
At that hearing, the Committee received testimony from Senators 
Chuck Hagel and Max Cleland; from Representative John Mica; 
from representatives of the General Accounting Office, the 
Office of Personnel Management, the Veterans' Employment and 
Training Service of the Department of Labor, and the United 
States Postal Service; from various veterans service 
organizations; and from two Federal employee unions.
    On July 28, 1998, the Committee met in open session to 
consider, among other things, S. 1021, as amended. As amended, 
S. 1021 would have:
    1. Deleted provisions requiring that all employment 
competitions be opened to all preference eligible veterans;
    2. Deleted provisions relating to RIF rights;
    3. Modified the provision extending preference to the 
judicial branch to exclude employees of individual judges, and 
employees of the Chief Judge;
    4. Removed the extension of preference eligible status to 
those who served in ``hazardous duty'' areas;
    5. Expanded veterans' employment opportunities with Federal 
contractors by strengthening reporting requirements; and
    6. Expanded veterans' employment opportunities with Federal 
contractors by adding Persian Gulf War veterans to the 
statutory listing of veterans to whom Federal contractors must 
conduct outreach programs.
    On July 28, 1998, the Committee voted to report S. 1021, as 
amended, favorably to the Senate, and on September 21, 1998, 
the bill was reported (S. Rept. 105-340).
    On October 5, 1998, the Senate unanimously approved S. 
1021, as further amended to:
    1. Reinsert provisions requiring that Federal hiring 
competitions be opened to all ``preference eligible'' veterans, 
but limiting that mandate to cases where the hiring agency has 
opened the competition to persons other than its own current 
employees; and
    2. Expand the universe of veterans to whom Federal 
contractors will conduct outreach activities to include all 
``preference eligible'' veterans.
    On October 8, 1998, S. 1021 was passed by the House, 
clearing the measure for the President. On October 20, 1998, S. 
1021 was presented to the President. On October 31, 1998, the 
President signed S. 1021 into law as Public Law 105-339, the 
``Veterans Employment Opportunities Act of 1998.''
    As detailed above, on August 3, 1998, the House passed H.R. 
4110, and on September 30, 1998, the Senate amended H.R. 4110 
to substitute the text of S. 2273, and then passed H.R. 4110, 
as so amended. On October 10, 1998, the House agreed to the 
Senate amendment to H.R. 4110 and further amended the bill to 
add a number of other provisions. Among the provisions so added 
to H.R. 4110 were:
    1. A provision (at section 211) derived from H.R. 4110 as 
originally passed by the House on August 3, 1998, specifying 
that the States, in their capacities as employers, will be 
subject to USERRA;
    2. A provision (at section 212) derived from H.R. 4110 as 
originally passed by the House extending USERRA rights to 
veterans hired abroad by U.S. employers;
    3. A provision (at section 213) derived from H.R. 4110 as 
originally passed by the House modifying procedures for 
processing Federal employee complaints relating to USERRA; and
    4. A provision (at section 1004) modifying the formula to 
determine the number of VETS-funded Disabled Veterans Outreach 
Program Specialists to reflect the working-age veteran 
population in each state.
    On October 21, 1998, the Senate agreed to the House 
amendments, clearing the measure for the President. On November 
2, 1998, H.R. 4110 was presented to the President. On November 
11, 1998, the President signed H.R. 4110 into law as Public Law 
105-368, the ``Veterans Programs Enhancement Act of 1998.''

                    VIII. Home Loan Guaranty Program


                              A. OVERVIEW

    The VA Home Loan Guaranty Program is designed to encourage 
and facilitate the extension of favorable credit terms by 
private lenders to veterans, and to the surviving spouses of 
those who die from service-connected causes, for the purchase, 
construction, or improvement of homes. The program operates by 
substituting the Federal Government's guaranty of a portion of 
the loan for down payments required under conventional 
mortgages. Eligible veterans are thereby able to purchase a 
home even if they lack down payment funds.
    Most veterans pay a fee to VA for the guaranty. Service-
disabled veterans and certain surviving spouses are exempt from 
paying the fee. For loans of up to $45,000, VA guarantees up to 
50 percent of the loan amount; for loans between $45,000 and 
$144,000, VA guarantees up to 40 percent, with a maximum 
guaranty of $36,000; and for loans of more than $144,000, VA 
guarantees 25 percent, with a maximum guaranty of $50,750.
    When a lender forecloses on a VA-guaranteed loan, VA uses a 
formula, known as the ``no-bid'' formula, to determine whether 
it would be to VA's advantage to pay the guaranty amount or, 
alternatively, to acquire, then resell, the property. When VA 
resells properties it acquires through foreclosure, it 
typically finances purchasers through arrangements known as 
``vendee loans.'' Such loans are either retained as VA 
``portfolio loans,'' or are pooled and sold as mortgage-backed 
securities, known as real estate mortgage investment conduits 
or ``REMICs.'' VA recovers losses after such sales from 
defaulting veterans, and VA--but only VA--is authorized to 
withhold veterans benefits to offset such debts.
    Under a 5-year pilot program established in 1992 by Public 
Law 102-547, VA makes direct loans to Native American veterans 
to finance the purchase or construction of housing on native 
lands. VA makes direct loans for such purchases since 
commercial lenders cannot take title to trust lands and so will 
not finance such purchases, even with a VA guaranty. Like 
vendee loans which are not sold as REMICs, such loans are held 
by VA.

                            B. FIRST SESSION

    On May 7, 1997, Senator Daniel K. Akaka introduced S. 714, 
a bill to make permanent the Native American Veteran Housing 
Loan Pilot Program of the Department of Veterans Affairs.
    On July 7, 1997, Chairman Specter introduced S. 986, the 
proposed ``Veterans' Housing Loan Improvements Act of 1997,'' 
at the request of the Administration. As introduced, S. 986 
would have:
    1. Recodified and extended VA's home loan fee schedule;
    2. Reenacted VA's home loan fee schedule in tabular format;
    3. Made permanent VA's ``no bid'' formula authority;
    4. Repealed restrictions on Federal debt collection 
authorities which authorize VA--but only VA--to offset from 
veterans' benefits to recover Federal debts;
    5. Consolidated various VA home loan revolving funds (into 
which home loan fees are deposited and from which losses on 
defaults are paid) into a single revolving fund;
    6. Made conforming and technical amendments to home loan 
guaranty program statutes (to excise references to separate 
revolving funds).
    On July 25, 1997, the Committee held a hearing on pending 
legislation, including S. 714 and S. 986. The Committee 
received testimony from VA and various veterans service 
organizations.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 714 and S. 986, as amended. As 
amended, S. 714 would have:
    1. Extended the Native American Veteran Housing Loan Pilot 
Program for a term of two years; and
    2. Extended, as discussed above, other authorizations 
scheduled to expire during 1997 relating to medical care 
programs.
    S. 986, as amended, contained the provisions of the bill as 
introduced and as summarized above. In addition, it was amended 
to incorporate other provisions not related to home loan 
program matters.
    On October 7, 1997, the Committee voted to report S. 714 
and S. 986, as amended, favorably to the Senate. On October 30, 
1997, S. 714 was reported (S. Rept. 105-123). On November 10, 
1997, S. 986 was reported (S. Rept. 105-153).
    On November 5, 1997, S. 714, as amended, was passed by the 
Senate. On November 9, 1997, the House took up S. 714, and 
amended and passed the bill. As so amended, S. 714 incorporated 
provisions from a number of House- and Senate-passed bills. 
With respect to home loan program matters, S. 714, as amended, 
extended the Native American Veteran Housing Loan Program from 
September 30, 1997, to December 31, 2001. On November 10, 1997, 
the Senate agreed to the House amendments to S. 714, clearing 
the measure for the President. On November 13, 1997, S. 714, 
the ``Veterans' Benefits Act of 1997,'' was presented to the 
President. On November 21, 1997, the President signed S. 714 
into law (Public Law 105-114).

                           C. SECOND SESSION

    On June 17, 1998, Senator Daniel K. Akaka introduced S. 
2181, a bill to make permanent the eligibility of former 
members of the Selected Reserve for veteran housing loans.
    On July 28, 1998, the Committee met in open session to 
consider pending legislation. Among the measures considered 
were S. 1822, as amended to incorporate, among other things, 
the provisions of S. 2181. On that date, the Committee voted to 
report S. 1822, as so amended, favorably to the Senate. On 
September 22, 1998, S. 1822 was reported (S. Rept. 105-344).
    As noted above, on August 3, 1998, the House passed H.R. 
4110, and on September 30, 1998, the Senate amended H.R. 4110 
to substitute the text of S. 2273, and then passed H.R. 4110 as 
so amended. On October 10, 1998, the House agreed to the Senate 
amendment to H.R. 4110 and further amended the bill to add the 
following:
    1. A provision (at section 601) derived from H.R. 3039 
authorizing VA loan guarantees for multifamily transitional 
housing for homeless veterans;
    2. A provision (at section 602) derived from S. 986, as 
passed by the Senate in the First Session, consolidating 
various VA home loan revolving funds into a single revolving 
fund;
    3. A provision (at section 603) derived from S. 2181 
extending for four years the eligibility of former members of 
the Selected Reserve for veteran housing loans; and
    4. A provision (at section 604) requiring the application 
of procurement laws relating to competition to contracts for 
the management of real property owned by VA as a consequence of 
defaults on VA-guaranteed home loans.
    On October 21, 1998, the Senate agreed to the House 
amendments, clearing the measure for the President. On November 
2, 1998, H.R. 4110 was presented to the President. On November 
11, 1998, the President signed H.R. 4110 into law as Public Law 
105-368, the ``Veterans Programs Enhancement Act of 1998.''

                IX. Burial Benefits and Memorial Affairs


                              A. OVERVIEW

    VA's National Cemetery Administration provides a range of 
burial benefits for eligible veterans. Among the benefits 
offered are: burial in a national cemetery; burial allowances 
to help defray burial and funeral expenses; plot allowances; 
flags for draping over the caskets of eligible deceased 
veterans; and headstones or markers for the graves of veterans 
and their eligible dependents.
    The National Cemetery Administration is comprised of 119 
cemeteries and 34 soldiers lots, plots, and monument sites. 
Veterans and certain dependents of veterans may be interred in 
such cemeteries. In addition, VA operates a program of grants 
to States to assist in the construction of State veterans 
cemeteries.
    Separate from the National Cemetery Administration, 
Arlington National Cemetery (established in 1864) and a burial 
facility at the U.S. Soldiers' and Airmen's Home in Washington, 
DC, established in 1862, are maintained by the U.S. Army.
    Until 1967, all of the national cemeteries, including 
Arlington National Cemetery, were ``open'' to: (1) all who had 
died in service; (2) retired career service personnel; (3) non-
career service veterans who had served honorably; and (4) the 
immediate families of interred eligible persons. Generally, VA-
administered cemeteries remain ``open'' to all such deceased 
persons. After the burial of President Kennedy in Arlington in 
1963, however, requests for burials there increased markedly. 
As a consequence, eligibility for burial at Arlington was 
restricted, in 1967, by regulation in order to extend the 
``life'' of the cemetery.
    Currently, service personnel who die in service, retired 
service personnel, and their immediate family members are 
eligible. Non-career veterans, however, are not generally 
eligible for ground burial (though they remain eligible for 
inurnment in Arlington's columbarium) unless (1) they are 
former prisoners of war, or (2) they otherwise have 
distinguished themselves either in service, by receiving 
specified military decorations (the Medal of Honor; the 
Distinguished Service Cross, Air Force Cross, or Navy Cross; 
the Distinguished Service Medal; the Silver Star; or the Purple 
Heart), or after service, by holding specified high offices 
(President, Vice President, Member of Congress, Chief Justice 
of the United States or Associate Justice of the Supreme Court, 
Cabinet officers, and other executive branch offices). Further, 
an informal practice of granting ``waivers'' (by the Secretary 
of the Army or the President) has evolved to allow the burial 
in Arlington of ineligible persons.
    Veterans may forfeit their eligibility for benefits, 
including burial benefits, by the commission of certain crimes. 
Among the crimes giving rise to such forfeitures are treason, 
mutiny, sabotage and subversive activities, and fraud upon the 
VA.
    The American Battle Monuments Commission (ABMC) maintains 
overseas monuments for servicemembers who died in foreign 
conflicts.

                            B. FIRST SESSION

1. Eligibility for Benefits

    On January 21, 1997, Senator Trent Lott introduced S. 61, a 
bill to extend eligibility for veterans' burial benefits, 
funeral benefits, and related benefits for veterans of certain 
service in the United States Merchant Marine during World War 
II.
    On April 22, 1997, Senator Daniel K. Inouye (for himself 
and Senator Daniel K. Akaka) introduced S. 623, the proposed 
``Filipino Veterans Equity Act of 1997.'' As noted above, that 
bill would have modified provisions of law relating to benefits 
received by persons who served, during World War II, in the 
forces of the Commonwealth of the Philippines and in the 
Philippine Scouts.
    On July 25, 1997, the Committee held a hearing on S. 623 
and other pending legislation. At that hearing, the Committee 
received testimony from Senator Inouye, from United States 
Representatives Bob Filner and Benjamin A. Gilman, and from 
representatives of the VA and various veterans service 
organizations.
    On October 7, 1997, the Committee met in open session to 
consider, among other things, S. 623, as amended. As amended, 
the bill would have authorized the payment of burial and 
funeral allowance benefits to former members of the 
Commonwealth Army of the Philippines who, at death, had been 
naturalized citizens of the United States and resident in the 
United States. On that date, the Committee voted to report S. 
623 favorably to the Senate. No further action was taken on S. 
623 during the 105th Congress.
    On June 17, 1997, Senator Robert G. Torricelli introduced 
S. 917, the proposed ``National Cemetery Sanctity Act.'' S. 917 
would have expanded the range of criminal offenses (to include 
terrorism offenses and the murder of a police officer) that 
result in the forfeiture of certain ``gratuitous'' veterans 
benefits, including burial in a national cemetery.
    On June 17, 1997, Chairman Specter introduced S. 923, a 
bill to deny all veterans benefits to persons convicted of 
Federal or State capital offense.
    On November 7, 1997, Senator Gordon Smith introduced S. 
1406, a bill to provide for the furnishing of burial flags on 
behalf of certain deceased members and former members of the 
Selected Reserve.
    On June 18, 1997, S. 923 was discharged from the Committee 
by unanimous consent and was passed by the Senate, as amended 
at the request of Chairman Specter and Senator Torricelli to 
strike the bill's inclusion of State capital offenses among 
those for which conviction would result in a veteran's 
disqualification for benefits. The House Committee on Veterans' 
Affairs ordered the bill reported on September 11, 1997, as 
amended to deny burial benefits (but not other veterans 
benefits) to persons convicted of Federal capital crimes. On 
October 31, 1997, the House passed the bill, as further amended 
to bar burial benefits to persons convicted of State, as well 
as Federal, capital crimes. On November 10, 1997, the Senate 
agreed to the House amendments, clearing the measure for the 
President. On November 13, 1997, S. 923 was presented to the 
President and on November 21, 1997, the measure was signed by 
the President into law (Public Law 105-116).
    No action was taken on S. 61 or S. 1406 during the First 
Session of the 105th Congress.

2. Cemetery Administration

    On January 28, 1997, Senator Joseph R. Biden, Jr., 
introduced S. 217, a bill to provide for the payment to States 
of plot allowances for certain veterans eligible for burial in 
a national cemetery who are buried in State cemeteries.
    On February 12, 1997, Senator Carol Moseley-Braun 
introduced S. 319, a bill to designate the national cemetery at 
the former site of the Joliet Arsenal, in Illinois, as the 
``Abraham Lincoln National Cemetery.''
    On May 23, 1997, Senator Strom Thurmond introduced S. 813, 
a bill to specify criminal penalties for theft and willful 
vandalism at national cemeteries.
    On July 7, 1997, Chairman Specter introduced S. 987 at the 
request of the Administration. S. 987 would have authorized VA, 
by administrative action, to make cost-of-living been 
adjustments in the rates of VA-paid compensation and DIC, and 
would have, in addition, amended the formula by which VA makes 
grants to State cemeteries to provide that VA would grant 100 
percent of the costs of land improvements and cemetery ``start-
up'' costs (rather than granting 50 percent of land acquisition 
and improvement costs as then specified by statute).
    On July 10, 1997, Senator Daniel K. Akaka introduced S. 
1006, a bill to authorize appropriations for the expansion of 
the columbarium of the National Memorial Cemetery of the 
Pacific.
    On July 25, 1997, the Committee held a hearing on pending 
legislation, including S. 813 and S. 987. The Committee 
received testimony from VA and various veterans service 
organizations.
    On October 7, 1997, the Committee met in open session to 
consider pending legislation. When the Committee scheduled that 
meeting, S. 813 had placed on the agenda. That bill, however, 
was removed from the meeting's agenda at the request of its 
sponsor, Senator Thurmond. Subsequently, on October 9, 1997, 
the bill was discharged from the Committee by unanimous 
consent, and referred to the Committee on the Judiciary. On 
October 23, 1997, the Committee on the Judiciary voted to order 
S. 813, as amended to incorporate a substitute directing the 
United States Sentencing Commission to adopt ``enhanced'' 
sentencing guidelines for offenses involving theft or willful 
vandalism at national cemeteries, reported favorably without 
written report. On November 4, 1997, S. 813, as so amended, 
unanimously passed the Senate. On November 8, 1997, S. 813 
passed the House by voice vote, clearing the measure for the 
President. On November 10, 1997, S. 813 was presented to the 
President, and on November 19, 1997, the President signed S. 
813 into law as Public Law 105-101.
    The Committee did, however, consider S. 987, as amended, at 
its October 7, 1997, Committee meeting. As amended, S. 987 
excised the provision which would have modified the formula by 
which VA makes grants to State cemeteries. That provision, 
however, was added to S. 986, as amended, which was also 
considered during the Committee's October 7, 1997, meeting. The 
Committee voted to report S. 986, as so amended, favorably to 
the Senate, and on November 10, 1997, the bill was reported (S. 
Rept. 105-153). As discussed above, some provisions derived 
from S. 986, as amended, were incorporated into amendments to 
S. 714 as ultimately enacted into law as Public Law 105-114. 
The provision relating to the State cemetery grant formula, 
however, was not among those provisions. No further action was 
taken on the provision during the First Session.
    No action was taken on S. 319 during the First Session of 
the 105th Congress. No action was taken on S. 217 or S. 1006 
during the 105th Congress.

                           C. SECOND SESSION

1. Eligibility for Benefits

    On March 11, 1998, Chairman Specter introduced S. 1743 at 
the request of the Administration. S. 1743 would have 
authorized the memorialization of deceased spouses and 
surviving spouses of veterans and deceased members of the Armed 
Forces whose remains are not available for burial.
    On October 2, 1998, Senator Charles Robb introduced S. 
2547, a bill to authorize the memorialization at the 
columbarium at Arlington National Cemetery of veterans who had 
donated their remains to science.
    On July 28, 1998, the Committee met in open session to 
consider pending legislation. Among the measures considered 
were S. 730, as amended to incorporate, among other things, the 
provisions of S. 1743. On that date, the Committee voted to 
report S. 730, as amended, favorably to the Senate. On 
September 21, 1998, S. 730 was reported (S. Rept. 105-339).
    As noted above, on August 3, 1998, the House passed H.R. 
4110, and on September 30, 1998, the Senate amended H.R. 4110 
to substitute the text of S. 2273, and then passed H.R. 4110 as 
so amended. On October 10, 1998, the House agreed to the Senate 
amendment to H.R. 4110 and further amended the bill to add a 
number of other provisions. Among the provisions so added to 
H.R. 4110 were one (at section 401) derived from S. 1743 
(relating to the memorialization of deceased spouses and 
surviving spouses whose remains are not available for burial), 
and one (at section 402) derived from S. 61 (relating to 
merchant mariners' eligibility for burial benefits). On October 
21, 1998, the Senate agreed to the House amendments, clearing 
the measure for the President. On November 2, 1998, H.R. 4110 
was presented to the President. On November 11, 1998, the 
President signed H.R. 4110 into law as Public Law 105-368, the 
``Veterans Programs Enhancement Act of 1998.''
    As noted above, S. 1406 was introduced by Senator Gordon 
Smith on November 7, 1997. That bill would have provided for 
the furnishing of burial flags to deceased members and former 
members of the Selected Reserve. The Committee did not act on 
S. 1406 during the 105th Congress. However, a provision derived 
from S. 1406 was enacted as section 517 of the ``Strom Thurmond 
National Defense Authorization Act for Fiscal Year 1999'' 
(Public Law 105-261), approved by the House of Representatives 
on September 24, 1998, and by the Senate on October 1, 1998, 
and signed by the President on October 17, 1998. Also included 
in the ``Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999'' were a provision (at section 567) requiring 
the Secretaries of Defense and Veterans Affairs to convene a 
conference on improving the availability of military funeral 
honors, including honor guard details, at the national 
cemeteries, and a provision (at section 1073) requiring that 
burial flags furnished by VA be wholly produced in the United 
States.
    No action was taken on S. 2547 during the 105th Congress. 
Further, no action was taken on H.R. 3211, the proposed 
``Arlington National Cemetery Burial Eligibility Act,'' a bill 
which was passed by the House on March 24, 1998, and referred 
to the Committee on March 25, 1998. That bill would have 
codified, and amended, standards for eligibility for burial in 
Arlington National Cemetery and would have barred the granting 
of waivers permitting the burial of ineligible persons there.

2. Cemetery Administration

    On March 11, 1998, Chairman Specter introduced S. 1744 at 
the request of the Administration. S. 1744 would have 
redesignated the National Cemetery System as the National 
Cemetery Administration, and would have redesignated the 
Director of the National Cemetery System as the Assistant 
Secretary for Memorial Affairs.
    On September 1, 1998, Senator Max Cleland introduced S. 
2429, a bill to direct the Secretary of Veterans Affairs to 
establish a national cemetery for veterans in the Atlanta, 
Georgia, metropolitan area.
    As detailed above, on August 3, 1998, the House passed H.R. 
4110, and on September 30, 1998, the Senate amended H.R. 4110 
to substitute the text of S. 2273, and then passed H.R. 4110, 
by voice vote, as so amended. On October 10, 1998, the House 
agreed to the Senate amendment to H.R. 4110 and further amended 
the bill to add the following provisions:
    1. A provision (at section 403) derived from S. 1744 
redesignating the National Cemetery System as the National 
Cemetery Administration, and redesignating the Director of the 
National Cemetery System as the Under Secretary for Memorial 
Affairs (rather than the Assistant Secretary for Memorial 
Affairs, as requested by the Administration);
    2. A provision (at section 404) derived from S. 987 
modifying VA's formula for making grants to State cemeteries; 
and 3.A provision (at section 1001) relating to the subject 
matter of S. 319 and prospectively reserving to the legislative 
branch the authority to name VA facilities after persons.
    On October 21, 1998, the Senate agreed to the House 
amendments, clearing the measure for the President. On November 
2, 1998, H.R. 4110 was presented to the President. On November 
11, 1998, the President signed H.R. 4110 into law as Public Law 
105-368, the ``Veterans Programs Enhancement Act of 1998.''
    No action was taken on S. 2429 during the 105th Congress.

                              X. Insurance


                              A. OVERVIEW

    VA administers its own life insurance programs, and 
supervises the administration of two additional programs, for 
the benefit of servicemembers and veterans and their 
beneficiaries. Over 4.9 million policies are in force, having a 
total value of over $560 billion, making VA the Nation's fourth 
largest life insurer.

                            B. FIRST SESSION

    No legislation relating to VA insurance programs was 
referred to the Committee during the First Session of the 105th 
Congress.

                           C. SECOND SESSION

    On May 21, 1998, Chairman Specter introduced S. 2108, the 
proposed ``Servicemembers' and Veterans' Group Life Insurance 
Accelerated Death Benefits Act,'' at the request of the 
Administration. The bill would have authorized VA to promulgate 
regulations allowing persons with a life expectancy of 12 
months or less to elect to receive, prior to death, up to 50 
percent of the insurance benefits due at death.
    On July 28, 1998, the Committee met in open session to 
consider pending legislation. Among the measures considered 
were S. 730, as amended to incorporate, among other things, the 
provisions of S. 2108. On that date, the Committee voted to 
report S. 730, as amended, favorably to the Senate. On 
September 21, 1998, S. 730 was reported (S. Rept. 105-339).
    As noted above, on August 3, 1998, the House passed H.R. 
4110, and on September 30, 1998, the Senate amended H.R. 4110 
to substitute the text of S. 2273, and then passed H.R. 4110, 
by voice vote, as so amended. On October 10, 1998, the House 
agreed to the Senate amendment to H.R. 4110 and further amended 
the bill to add a number of other provisions. Among the 
provisions so added to H.R. 4110 were the following:
    1. A provision (at section 302) derived from S. 2108 
authorizing the election of accelerated death benefits on 
Servicemembers' and Veterans' Group Life Insurance policies;
    2. A provision (at section 303) requiring VA to report to 
the Congress on the adequacy of VA insurance and survivor 
benefits programs in meeting the needs of the survivors of 
deceased veterans who had service-connected disabilities; and
    3. A provision (at section 304) making technical amendments 
to statutes governing the National Service Life Insurance 
program.
    On October 21, 1998, the Senate agreed to the House 
amendments, clearing the measure for the President. On November 
2, 1998, H.R. 4110 was presented to the President. On November 
11, 1998, the President signed H.R. 4110 into law as Public Law 
105-368, the ``Veterans Programs Enhancement Act of 1998.''

              XI. Claims Adjudication and Judicial Review


                              A. OVERVIEW

    Public Law 100-687 established the United States Court of 
Veterans Appeals (CVA) and provided for judicial review by CVA 
of denials of claims for veterans' benefits. The Court has 
exclusive jurisdiction to review final decisions of the Board 
of Veterans' Appeals (BVA) in cases where a ``notice of 
disagreement'' was filed on or after November 18, 1988, the 
date of enactment of Public Law 100-687. In cases of individual 
claims for benefits, the Court's review is based on the record 
of proceedings before the BVA, and only individuals adversely 
affected by the BVA decision--and not VA--may appeal to the 
Court. CVA decisions are subject to review by the United States 
Court of Appeals for the Federal Circuit, and decisions of the 
United States Court of Appeals for the Federal Circuit are 
subject to review in the United States Supreme Court.

                            B. FIRST SESSION

    On March 18, 1997, Senator Patty Murray introduced S. 464, 
a bill to allow revision of veterans benefits decisions based 
on clear and unmistakable error.
    On July 7, 1997, Chairman Specter introduced S. 988 at the 
request of the Chief Judge, U.S. Court of Veterans Appeals. The 
bill contained provisions to:
    1. Rename CVA the United States Court of Appeals for 
Veterans Claims.
    2. Provide for ``staggered'' retirements of CVA's five 
original Associate Judges by allowing the early retirement of 
one Associate Judge in 1999; in 2000; in 2001; in 2002; and in 
2003;
    3. Modify CVA judges' retirement/survivor benefits by:
    (a) Modifying active judges' contributions toward 
retirement annuities;
    (b) Prohibiting interest payments on retirement pay 
deductions made by judges for periods of time during which 
judges were separated from judicial or congressional service 
and were not receiving retired pay based on such service;
    (c) Allowing survivor annuities to be paid to survivors of 
a judge who dies after 18 months of creditable civilian 
service, and allowing a survivor annuity without a creditable 
service requirement if a judge is assassinated;
    (d) Repealing the requirement that a surviving spouse be at 
least 50 years of age before he or she could receive a 
survivor's annuity;
    (e) Specifying cost-of-living adjustments for survivor 
annuities;
    (f) Allowing a judge to elect to participate in a survivor 
annuity within six months after marriage if such judge has 
retired;
    (g) Calculating years of service by crediting six months or 
more service as one year and crediting less than six months 
service as zero years;
    (h) Prohibiting cost-of-living adjustment to a retired 
judge's pay if the adjustment would cause retired pay to exceed 
the pay of an active judge;
    (i) Providing for forfeiture of retirement pay in cases 
where a judge, within one year after retirement, represents a 
client against the government in a veteran's claim;
    (j) Exempting the CVA retirement fund from budget 
sequestration; and
    (k) Authorizing CVA to prescribe rules to carry out the 
provisions of 38 U.S.C. Chapter 72 relating to retirement and 
administrative functions.
    On July 25, 1997, the Committee held a hearing on pending 
legislation, including S. 464. The Committee received testimony 
from VA and various veterans service organizations.
    On October 7, 1997, the Committee met in open session to 
consider pending legislation, including S. 464. The Committee 
voted to report S. 464 favorably to the Senate, and on November 
13, 1997, the bill was reported (S. Rept. 105-157).
    A companion bill to S. 464, H.R. 1090, was passed by the 
House on April 16, 1997, and on April 17, 1997, H.R. 1090 was 
referred to the Committee. On November 10, 1997, H.R. 1090 was 
discharged from the Committee by unanimous consent and 
unanimously passed the Senate. On November 13, 1997, H.R. 1090 
was presented to the President, and on November 21, 1997, the 
President signed H.R. 1090 into law as Public Law 105-111.
    No action was taken by the Committee on S. 988 during the 
First Session of the 105th Congress.

                           C. SECOND SESSION

    On March 11, 1998, Chairman Specter introduced S. 1745 at 
the request of the Administration. S. 1745 would have provided 
flexibility in the order in which the Board of Veterans' 
Appeals hears and considers appeals by permitting BVA to 
consider and decide appeals out of turn if delay on a 
previously filed claim is necessary to provide a hearing on 
that claim, and by allowing hearings to be advanced for good 
cause shown.
    On July 28, 1998, the Committee met in open session to 
consider pending legislation. Among the measures considered 
were S. 730, as amended to incorporate, among other things, the 
provisions of S. 1745. On that date, the Committee voted to 
report S. 730, as amended, favorably to the Senate. On 
September 21, 1998, S. 730 was reported (S. Rept. 105-339).
    As noted above, on August 3, 1998, the House passed H.R. 
4110, and on September 30, 1998, the Senate amended H.R. 4110 
to substitute the text of S. 2273, and then passed H.R. 4110 as 
so amended. On October 10, 1998, the House agreed to the Senate 
amendment to H.R. 4110 and further amended the bill to add a 
number of other provisions. Among the provisions so added to 
H.R. 4110 were the following:
    1. A provision (at section 1003) derived from S. 1745 
relating to flexibility in the order in which the Board of 
Veterans' Appeals hears and considers appeals;
    2. Provisions (at Title V) derived from S. 988 to:
    (a) Provide for the continuation of the term of an active 
CVA judge who is appointed to a second term, pending 
confirmation, for up to one year;
    (b) Exempt the CVA retirement fund from sequestration 
orders;
    (c) Modify survivor annuity benefits; and
    (d) Require the Chief Judge of the Court to report to the 
Committee on the feasibility of merging CVA retirement programs 
with other Federal judicial retirement programs and on the 
feasibility of allowing CVA judges to participate in the 
survivor annuity programs available to other Federal court 
judges; and
    3. Rename CVA the United States Court of Appeals for 
Veterans Claims.
    On October 21, 1998, the Senate agreed to the House 
amendments, clearing the measure for the President. On November 
2, 1998, H.R. 4110 was presented to the President. On November 
11, 1998, the President signed H.R. 4110 into law as Public Law 
105-368, the ``Veterans Programs Enhancement Act of 1998.''

                           XII. Miscellaneous


                            A. FIRST SESSION

    On June 4, 1997, H.J. Res 75 was referred to the Committee. 
This measure, which would have conferred the status of honorary 
veteran on Leslie Townes (Bob) Hope, had been approved by the 
House on June 3, 1997.
    On June 12, 1997, the Committee ordered that the resolution 
be reported to the Senate with favorable recommendation, 
without written report. On September 4, 1997, the resolution 
was so reported to the Senate, and on September 9, 1997, H.J. 
Res. 75 was approved by the Senate, clearing the measure for 
the President. On October 22, 1997, H.J. Res. 75 was presented 
to the President and on October 30, 1997, the President signed 
H.J. Res. 75 into law as Public Law 105-67.
    A related measure, S. Con. Res. 56, was introduced by 
Chairman Specter on October 22, 1997. That resolution would 
have authorized the use of the Capitol rotunda for a ceremony 
to confer upon Leslie Townes (Bob) Hope the status of honorary 
veteran of the Armed Forces of the United States. S. Con. Res. 
56 was considered and passed by the Senate on October 22, 1997, 
and agreed to by the House on October 23, 1997. The ceremony 
conferring the status of honorary veteran of the Armed Forces 
of the United States was held in the rotunda of the Capitol on 
October 29, 1997.

                           B. Second Session

    On March 11, 1998, Chairman Specter introduced S. 1746 at 
the request of the Administration. The bill would have removed 
a statutory provision requiring a specified number of full-time 
equivalent positions in the Department of Veterans Affairs 
Office of the Inspector General.
    On April 1, 1998, Senator Craig Thomas introduced S. 1903, 
a bill to prohibit the return of veterans memorial objects to 
foreign nations without specific authorization of law.
    No action was taken by the Committee on S. 1746 or S. 1903 
during the 105th Congress.

                                  
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