Text: H.R.1199 — 101st Congress (1989-1990)All Information (Except Text)

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--H.R.1199--
H.R.1199
One Hundred First Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday, the twenty-third day
of January,
one thousand nine hundred and ninety
An Act
To amend title 38, United States Code, to establish a system of competitive
pay for nurses employed by the Department of Veterans Affairs, to authorize
the Secretary of Veterans Affairs to make such system applicable to certain
other health-care personnel, to make certain improvements in veterans'
health and education programs, and for other purposes.
 Be it enacted by the Senate and House of Representatives of the United
 States of America in Congress assembled,
SECTION 1. SHORT TITLE.
 This Act may be cited as the `Department of Veterans Affairs Nurse Pay Act
 of 1990'.
TITLE I--PAY FOR NURSES AND OTHER HEALTH-CARE PERSONNEL
SEC. 101. RESTRUCTURING OF NURSE GRADE LEVELS AND PAY.
 (a) NEW GRADES ESTABLISHED- The Secretary of Veterans Affairs shall provide
 four grade levels for nurses employed by the Department of Veterans Affairs
 under section 4104(1) of title 38, United States Code, with relation to
 current nurse grades, as follows:
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  New grades            Current nurse grades                    
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  1. Entry grade        Junior and associate grades
  2. Intermediate grade Full and intermediate grades
  3. Senior grade       Senior and chief grades
  4. Director grade     Assistant director and director grades
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 (b) CURRENT NURSE GRADES DEFINED- For purposes of subsection (a), the term
 `current nurse grades' means the grades in effect on the day before the
 effective date of this Act for nurses employed by the Department of Veterans
 Affairs under section 4104(1) of title 38, United States Code.
 (c) CONFORMING AMENDMENT- Section 4107(b) of title 38, United States Code,
 is amended by striking out the items under the heading `NURSE SCHEDULE'
 and inserting in lieu thereof the following:
 `Entry grade.
 `Intermediate grade.
 `Senior grade.
 `Director grade.'.
SEC. 102. RATES OF PAY AND ADMINISTRATION OF PAY FOR NEW NURSE GRADES AND
CERTAIN OTHER HEALTH-CARE PERSONNEL.
 (a) CLARIFICATION- Section 4104(1) of title 38, United States Code, is
 amended by inserting `registered' before `nurses'.
 (b) PAY ADMINISTRATION- Chapter 73 of such title is amended by inserting
 after subchapter III the following new subchapter:
`SUBCHAPTER IV--PAY FOR NURSES AND OTHER HEALTH-CARE PERSONNEL
`Sec. 4141. Nurses and other health-care personnel: competitive pay
 `(a)(1) It is the purpose of this section to ensure, by a means providing
 increased responsibility and authority to directors of Department health-care
 facilities, that the rates of basic pay for health-care personnel positions
 described in paragraph (2) in each Department health-care facility (including
 the rates of basic pay of personnel employed in such positions on a part-time
 basis) are sufficient for that facility to be competitive, on the basis of
 pay and other employee benefits, with non-Department health-care facilities
 in the same labor-market area in the recruitment and retention of qualified
 personnel for those positions.
 `(2) The health-care personnel positions referred to in paragraph (1)
 (hereinafter in this section referred to as `covered positions') are the
 following:
 `(A) Registered nurse.
 `(B) Such positions referred to in clauses (1) and (3) of section 4104 of
 this title (other than the positions of physician, dentist, and registered
 nurse) as the Secretary may determine upon the recommendation of the Chief
 Medical Director.
 `(3) The rates of basic pay for covered positions in the Department shall
 be established and adjusted in accordance with this section instead of
 subsection (b)(1) of section 4107 of this title.
 `(4) The Secretary, after receiving the recommendation of the Chief Medical
 Director, shall prescribe regulations setting forth criteria and procedures
 to carry out this section and section 4142 of this title. Requirements in
 such regulations for directors to provide and maintain documentation of
 actions taken under this section shall require no more documentation than
 the minimum essential for responsible administration.
 `(b) The Secretary shall maintain the four grade levels for nurses employed
 by the Department under section 4104(1) of this title as specified in
 the Nurse Schedule in section 4107(b) of this title. The Secretary shall,
 pursuant to regulations prescribed to carry out this subchapter, establish
 grades for other covered positions as the Secretary considers appropriate.
 `(c)(1) For each grade in a covered position, there shall be a range of
 basic pay. The maximum rate of basic pay for a grade shall be 133 percent of
 the minimum rate of basic pay for the grade, except that, if the Secretary
 determines that a higher maximum rate is necessary with respect to any such
 grade in order to recruit and retain a sufficient number of high-quality
 health-care personnel, the Secretary may raise the maximum rate of basic pay
 for that grade to a rate not in excess of 175 percent of the minimum rate
 of basic pay for the grade. Whenever the Secretary exercises the authority
 under the preceding sentence to establish the maximum rate of basic pay
 at a rate in excess of 133 percent of the minimum rate for that grade,
 the Secretary shall, in the next annual report required by subsection (g),
 provide justification for doing so to the Committees on Veterans' Affairs
 of the Senate and House of Representatives.
 `(2) The maximum rate of basic pay for any grade for a covered position
 may not exceed the maximum rate of basic pay established for positions in
 level V of the Executive Schedule under section 5316 of title 5.
 `(3) The range of basic pay for each such grade shall be divided into equal
 increments, known as `steps'. The Secretary shall prescribe the number
 of steps. Each grade in a covered position shall have the same number of
 steps. Rates of pay within a grade may not be established at rates other
 than whole steps. Any increase (other than an adjustment under subsection
 (d)) within a grade in the rate of basic pay payable to an employee in a
 covered position shall be by one or more of such step increments.
 `(d)(1) The rates of basic pay for each grade in a covered position shall
 be adjusted periodically in accordance with this subsection in order to
 achieve the purposes of this section. Such adjustments shall be made--
 `(A) whenever there is an adjustment under section 5305 of title 5 in the
 rates of pay under the General Schedule, with the adjustment under this
 subsection to have the same effective date as the adjustment in the rates
 of basic pay under the General Schedule; and
 `(B) at such additional times as the director of a Department health-care
 facility, with respect to employees in that grade at that facility,
 determines.
 `(2) An adjustment in rates of basic pay under this subsection for a grade
 shall be carried out by adjusting the amount of the minimum rate of basic
 pay for that grade in accordance with paragraph (3) and then adjusting the
 other rates for that grade to conform to the requirements of subsection
 (c). Such an adjustment in the minimum rate of basic pay for a grade
 shall be made by the director of a Department health-care facility so
 as to achieve consistency with the beginning rate of compensation for
 corresponding health-care professionals in the Bureau of Labor Statistics
 (BLS) labor-market area of that facility.
 `(3)(A) In the case of a Department health-care facility located in an area
 for which there is current information, based upon an industry-wage survey
 by the Bureau of Labor Statistics for that labor market, on beginning
 rates of compensation for corresponding health-care professionals for
 the BLS labor-market area of that facility, the director of the facility
 concerned shall use that information as the basis for making adjustments in
 rates of pay under this subsection. Whenever the Bureau of Labor Statistics
 releases the results of a new industry-wage survey for that labor market that
 includes information on beginning rates of compensation for corresponding
 health-care professionals, the director of that facility shall determine,
 not later than 30 days after the results of the survey are released, whether
 an adjustment in rates of pay for employees at that facility for any covered
 position is necessary in order to meet the purposes of this section. If the
 director determines that such an adjustment is necessary, the adjustment,
 based upon the information determined in the survey, shall take effect on
 the first day of the first pay period beginning after that determination.
 `(B) In the case of a Department health-care facility located in an area for
 which the Bureau of Labor Statistics does not have current information on
 beginning rates of compensation for corresponding health-care professionals
 for the labor-market area of that facility for any covered position, the
 director of that facility shall conduct a survey in accordance with this
 subparagraph and shall adjust the amount of the minimum rate of basic pay for
 grades in that covered position at that facility based upon that survey. Any
 such survey shall be conducted in accordance with regulations prescribed by
 the Secretary. Those regulations shall be developed in consultation with
 the Secretary of Labor in order to ensure that the director of a facility
 collects information that is valid and reliable and is consistent with
 standards of the Bureau. The survey should be conducted using methodology
 comparable to that used by the Bureau in making industry-wage surveys except
 to the extent determined infeasible by the Secretary. Upon conducting a
 survey under this subparagraph, the director concerned shall determine,
 not later than 30 days after the date on which the collection of information
 through the survey is completed, whether an adjustment in rates of pay for
 employees at that facility for any covered position is necessary in order
 to meet the purposes of this section. If the director determines that such
 an adjustment is necessary, the adjustment, based upon the information
 determined in the survey, shall take effect on the first day of the first
 pay period beginning after that determination.
 `(C) The director of a facility may not adjust rates of basic pay under
 this subsection for any pay grade so that the minimum rate of basic pay
 for that grade is greater than the beginning rates of compensation for
 corresponding positions at non-Department health-care facilities.
 `(4) If the director of a Department health-care facility determines, after
 any survey under paragraph (3)(B) or at any other time that an adjustment
 in rates of pay is scheduled to take place under this subsection, that it
 is not necessary to adjust the rates of basic pay for employees in a grade
 of a covered position at that facility in order to carry out the purpose
 of this section, such an adjustment for employees at that facility in that
 grade shall not be made. Whenever a director makes such a determination,
 the director shall within 10 days notify the Chief Medical Director of the
 decision and the reasons for the decision.
 `(5) Information collected by the Department in surveys conducted under
 this subsection is not subject to disclosure under section 552 of title 5.
 `(6) In this subsection--
 `(A) The term `beginning rate of compensation', with respect to health-care
 personnel positions in non-Department health-care facilities corresponding
 to a grade of a covered position, means the sum of--
 `(i) the minimum rate of pay established for personnel in such positions
 who have education, training, and experience equivalent or similar to the
 education, training, and experience required for health-care personnel
 employed in the same category of Department covered positions; and
 `(ii) other employee benefits for those positions to the extent that those
 benefits are reasonably quantifiable.
 `(B) The term `corresponding', with respect to health-care personnel positions
 in non-Department health-care facilities, means those positions for which the
 education, training, and experience requirements are equivalent or similar
 to the education, training, and experience requirements for health-care
 personnel positions in Department health-care facilities.
 `(e) Adjustments in rates of basic pay under subsection (d) may increase
 or reduce the rates of basic pay applicable to any grade of a covered
 position. In the case of such an adjustment that reduces the rates of pay
 for a grade, an employee serving at a Department health-care facility on the
 day before the effective date of that adjustment in a position affected by
 the adjustment may not (by reason of that adjustment) incur a reduction in
 the rate of basic pay applicable to that employee so long as the employee
 continues to serve in that covered position at that facility. If such
 an employee is subsequently promoted to a higher grade, or advanced to a
 higher step within the employee's grade, for which the rate of pay as so
 adjusted is lower than the employee's rate of basic pay on the day before
 the effective date of the promotion, the employee shall continue to be
 paid at a rate of basic pay not less than the rate of basic pay applicable
 to the employee before the promotion so long as the employee continues to
 serve in that covered position at that facility.
 `(f) Not later than February 1 of 1991, 1992, and 1993, the Secretary shall
 submit to the Committees on Veterans' Affairs of the Senate and House of
 Representatives a report regarding any pay adjustments under the authority of
 subsection (d)(1)(A) effective during the 12 months preceding the submission
 of the report. Each such report shall set forth, by health-care facility,
 the percentage of such increases and, in any case in which no increase was
 made, the basis for not providing an increase.
 `(g) Not later than December 1 of 1991, 1992, and 1993, the Secretary
 shall submit to the Committees on Veterans' Affairs of the Senate and
 House of Representatives a report regarding the exercise of the authorities
 provided in this section for the preceding fiscal year. Each such report
 shall include the following:
 `(1) A review of the use of the authorities provided in this section
 (including the Secretary's and Chief Medical Director's actions, findings,
 recommendations, and other activities under this section) during the preceding
 fiscal year, including an assessment of the effects of the exercise of
 such authorities on the ability of the Department to recruit and retain
 qualified health-care professionals for covered positions.
 `(2) The plans for the use of the authorities provided in this subchapter
 for the next fiscal year.
 `(3) A description of the rates of basic pay in effect during the preceding
 fiscal year, with a comparison to the rates in effect during the previous
 fiscal year, shown by facility and by covered position.
 `(4) The numbers of employees in covered positions (shown separately for
 registered nurses and for each other covered position) who during the
 preceding fiscal year (A) left employment with the Department, (B) left
 employment at one Department medical facility for employment at another
 Department medical facility, or (C) changed from full-time status to
 part-time status (and from part-time status to full-time status), and a
 summary of the reasons therefor.
 `(5) The number of vacancies in covered positions in the Administration
 and a summary of the reasons that those positions are vacant.
 `(6) The number of employees who during the preceding fiscal year left
 employment at a health-care facility in one Bureau of Labor Statistics
 labor-market area for employment at a health-care facility in another such
 labor-market area, without changing residence.
 `(7) Justification for setting the maximum rate of basic pay for any grade
 at a rate in excess of 133 percent of the minimum rate of basic pay for
 that grade.
 `(8) The discussion required by section 4142(b)(2) of this title.
 `(h) For the purposes of this section, the term `health-care facility'
 means a medical center, an independent outpatient clinic, or an independent
 domiciliary facility.
`Sec. 4142. Nurses and other health-care personnel: administration of pay
 `(a)(1) Regulations prescribed under section 4141(a) of this title shall
 provide that whenever an employee in a covered position is given a new duty
 assignment which is a promotion, the rate of basic pay of that employee
 shall be increased at least one step increment in that employee's grade.
 `(2) A nurse serving in a head nurse position shall while so serving
 receive basic pay at a rate two step increments above the rate that would
 otherwise be applicable to the nurse. If such a nurse is in the highest or
 next-to-highest step for that nurse's grade, the preceding sentence shall
 be applied by extrapolation to create additional steps only for the purposes
 of this paragraph. The limitation in section 4141(c)(1) of this title shall
 not apply with respect to increased basic pay under this paragraph.
 `(3) An employee in a covered position who is promoted to the next higher
 grade shall be appointed in that grade at a step having a rate of basic
 pay that is greater than the rate of basic pay applicable to the employee
 in a covered position on the day before the effective date of the promotion.
 `(b)(1) Under regulations which the Secretary prescribes for the
 administration of this section, the director of a Department health-care
 facility (A) shall pay a cash bonus (in an amount to be determined by the
 director not to exceed $2,000) to an employee in a covered position at that
 facility who becomes certified in a specialty recognized by the Department,
 and (B) may provide such a bonus to an employee in such a position who has
 demonstrated both exemplary job performance and exemplary job achievement. The
 authority of the Secretary under this subsection is in addition to any
 other authority of the Secretary to provide job performance incentives.
 `(2) The Secretary shall include in the annual report under section 4141(g)
 of this title a discussion of the use during the period covered by the report
 of the payment of bonuses under this subsection and other job performance
 incentives available to the Secretary.
 `(c)(1) The Secretary shall provide (in regulations prescribed for the
 administration of this section) that the director of a Department health-care
 facility, in making a new appointment of a person under section 4104(1)
 of this title as an employee in a covered position for employment at that
 facility, may make that appointment at a rate of pay described in paragraph
 (3) without being subject to a requirement for prior approval at any higher
 level of authority within the Department in any case in which the director
 determines that it is necessary to do so in order to obtain the services
 of employees in covered positions in cases in which vacancies exist at that
 health-care facility.
 `(2) Such a determination may be made by the director of a health-care
 facility only in order to recruit employees in covered positions with
 specialized skills, especially employees with skills which are especially
 difficult or demanding.
 `(3) A rate of pay referred to in paragraph (1) is a rate of basic pay in
 excess of the minimum rate of basic pay applicable to the grade in which
 the appointment is made (but not in excess of the maximum rate of basic
 pay for that grade).
 `(4) Whenever the director of a health-care facility makes an appointment
 described in paragraph (1) without prior approval at a higher level of
 authority within the Department, the director shall--
 `(A) state in a document the reasons for employing the employee in a
 covered position at a rate of pay in excess of the minimum rate of basic
 pay applicable to the grade in which the employee is appointed (and retain
 that document on file); and
 `(B) in the first budget documents submitted to the Secretary by the director
 after the employee is employed, include documentation for the need for such
 increased rates of basic pay described in clause (A).
 `(5) Whenever the director of a health-care facility makes an appointment
 described in paragraph (1) on the basis of a determination described in
 paragraph (2), the covered employee appointed may continue to receive pay at
 a rate higher than that which would otherwise be applicable to that employee
 only so long as the employee continues to serve in a position requiring
 the specialized skills with respect to which the determination was made.
 `(d) Whenever the director of a health-care facility makes an appointment
 described in subsection (c)(1), the director may (without a regard to any
 requirement for prior approval at any higher level of authority within the
 Department) increase the rate of pay of other employees in the same covered
 position at that facility who are in the grade in which the appointment
 is made and are serving in a position requiring the specialized skills
 with respect to which the determination under subsection (c)(2) concerning
 the appointment was made. Any such increase shall continue in effect with
 respect to any employee only so long as the employee continues to serve in
 such a position.
 `(e) An employee in a covered position employed under section 4104(1) of
 this title who (without a break in employment) transfers from one Department
 health-care facility to another may not be reduced in grade or step within
 grade (except pursuant to a disciplinary action otherwise authorized by law)
 if the duties of the position to which the employee transfers are similar
 to the duties of the position from which the employee transferred. The rate
 of basic pay of such employee shall be established at the new health-care
 facility in a manner consistent with the practices at that facility for an
 employee of that grade and step.
 `(f) In this section, the term `covered position' has the meaning given
 that term in section 4141 of this title.'.
 (c) CONFORMING AMENDMENTS- Section 4107(e)(1) of such title is amended by
 striking out `in subsection (b)(1) of this section'.
 (d) CLERICAL AMENDMENT- The table of sections at the beginning of chapter
 73 of such title is amended by inserting after the item relating to section
 4134 the following:
`SUBCHAPTER IV--PAY FOR NURSES AND OTHER HEALTH-CARE PERSONNEL
`4141. Nurses and other health-care personnel: competitive pay.
`4142. Nurses and other health-care personnel: administration of pay.'.
SEC. 103. REPEAL OF LIMITATION ON HOURLY RATE OF OVERTIME PAY.
 Section 4107(e)(5) of title 38, United States Code, is amended by striking
 out `, not to exceed' in the first sentence and all that follows through
 `Nurse Schedule'.
SEC. 104. EFFECTIVE DATE.
 (a) IN GENERAL- (1) Except as provided in subsection (b), section 101 and
 the amendments made by section 102 shall take effect on the date of enactment.
 (2) The amendment made by section 103 shall take effect on April 1, 1991.
 (b) NEW PAY RATES- The rates of basic pay established pursuant to section
 4141 of title 38, United States Code, as added by section 102, shall take
 effect for covered positions (as defined in that section) with respect to
 the first pay period beginning on or after April 1, 1991.
TITLE II--MISCELLANEOUS
SEC. 201. PILOT PROGRAM ON PROVISION OF NONINSTITUTIONAL ALTERNATIVES TO
NURSING HOME CARE.
 (a) AUTHORITY TO PROVIDE FOR NONINSTITUTIONAL CARE- (1) Subchapter II of
 chapter 17 of title 38, United States Code, is amended by adding at the
 end the following new section:
` 620C. Noninstitutional alternatives to nursing home care: pilot program
 `(a) During the four-year period beginning on October 1, 1990, the Secretary
 may conduct a pilot program for the furnishing of medical, rehabilitative,
 and health-related services in noninstitutional settings for veterans who
 are eligible under this chapter for, and are in need of, nursing home care
 and who--
 `(1) are in receipt of, or are in need of, nursing home care primarily for
 the treatment of a service-connected disability; or
 `(2) have a service-connected disability rated at 50 percent or more.
 `(b)(1) Under the pilot program conducted pursuant to subsection (a),
 the Secretary shall (A) furnish appropriate health-related services solely
 through contracts with appropriate public and private agencies that provide
 such services, and (B) designate Department health-care employees to furnish
 case management services to veteran furnished services under the program.
 `(2) For the purposes of paragraph (1), the term `case management services'
 includes the coordination and facilitation of all services furnished to a
 veteran by the Department of Veterans Affairs, either directly or through
 contract, including assessment of needs, planning, referral (including
 referral for services to be furnished by the Department, either directly or
 through a contract, or by an entity other than the Department), monitoring,
 reassessment, and followup.
 `(c) The Secretary may provide in-kind assistance (through the services
 of Department of Veterans Affairs employees and the sharing of other
 Department resources) to a facility furnishing services to veterans under
 subsection (b)(1)(A). Any such in-kind assistance shall be provided under a
 contract between the Department and the facility concerned. The Secretary
 may provide such assistance only for use solely in the furnishing of
 appropriate services under this section and only if, under such contract,
 the Department receives reimbursement for the full cost of such assistance
 (including the cost of services and supplies and normal depreciation and
 amortization of equipment). Such reimbursement may be made by reduction in
 the charges to the United States or by payment to the United States. Any
 funds received through such reimbursement shall be credited to funds allotted
 to the Department facility that provided the assistance.
 `(d) The total cost of providing services or in-kind assistance in the case
 of any veteran for any fiscal year under the pilot program may not exceed 65
 percent of the cost that would have been incurred by the Department during
 that fiscal year if the veteran had been furnished, instead, nursing home
 care under section 610 of this title during that fiscal year.
 `(e) The authority of the Secretary to enter into contracts under this
 section shall be effective for any fiscal year only to the extent that
 appropriations are available.'.
 (2) The table of sections at the beginning of chapter 17 of such title is
 amended by inserting after the item relating to section 620B the following
 new item:
`620C. Noninstitutional alternatives to nursing home care: pilot program.'.
 (b) REPORT- Not later than February 1, 1994, the Secretary of Veterans
 Affairs shall submit to the Committees on Veterans' Affairs of the Senate and
 House of Representatives a report setting forth the Secretary's evaluation,
 findings, and conclusions regarding the conduct, through September 30,
 1993, of the pilot program required by section 620C of title 38, United
 States Code (as added by subsection (a)), and the results of the furnishing
 of care under such pilot program for the participating veterans. The report
 shall include a description of the conduct of the pilot program (including a
 description of the veterans furnished services and of the services furnished
 under the pilot program), and any plans for administrative action, and any
 recommendations for legislation, that the Secretary considers appropriate
 to include in the report.
SEC. 202. SHARING OF SPECIALIZED MEDICAL RESOURCES.
 (a) EXPANSION OF PURPOSE- Section 5051 of title 38, United States Code,
 is amended by striking out `hospitals' both places it appears in the first
 sentence and inserting in lieu thereof `health-care facilities'.
 (b) EXPANSION OF AUTHORITY- Section 5053 of such title is amended--
 (1) in subsection (a)--
 (A) by striking out `hospitals' the first place it appears and all that
 follows through `community' and inserting in lieu thereof `health-care
 facilities and other health-care facilities (including organ banks, blood
 banks, or similar institutions), research centers, or medical schools'; and
 (B) by striking out the last sentence; and
 (2) in subsection (b)--
 (A) in the first sentence, by striking out `a charge' and all that follows
 and inserting in lieu thereof `a methodology that provides appropriate
 flexibility to the heads of the facilities concerned to establish an
 appropriate reimbursement rate after taking into account local conditions
 and needs and the actual costs to the providing facility of the resource
 involved.'; and
 (B) in the second sentence, by inserting before the period `and to funds
 that have been allotted to the facility that furnished the resource involved'.
SEC. 203. TEMPORARY APPOINTMENTS OF HEALTH-CARE PERSONNEL.
 Section 4114(a)(3) of title 38, United States Code, is amended--
 (1) in subparagraph (A), by striking out the penultimate sentence and
 inserting in lieu thereof the following: `Temporary full-time appointments
 of persons who have successfully completed a full course of nursing in
 a recognized school of nursing approved by the Secretary, or who have
 successfully completed a full course of training for any category of
 personnel described in paragraph (3) of section 4104 of this title in a
 recognized education or training institution approved by the Secretary, and
 who are pending registration or licensure in a State, or certification by a
 national board recognized by the Secretary, shall not exceed two years.'; and
 (2) by striking out subparagraph (C) and inserting in lieu thereof the
 following:
 `(C) A student who has a temporary appointment under this paragraph and
 who is pursuing a full course of nursing in a recognized school of nursing
 approved by the Secretary, or who is pursuing a full course of training for
 any category of personnel described in paragraph (3) of section 4104 of
 this title in a recognized education or training institution approved by
 the Secretary, may be reappointed for a period not to exceed the duration
 of the student's academic program.'.
SEC. 204. REPORT ON POST-TRAUMATIC STRESS DISORDER.
 Section 201(e)(1) of the Veterans' Benefits Amendments of 1989 (Public
 Law 101-237; 103 Stat. 2066) is amended by inserting `and not later than
 February 1, 1991,' after `Not later than February 1, 1990,'.
SEC. 205. HEALTH PROFESSIONALS EDUCATIONAL ASSISTANCE PROGRAMS.
 (a) COORDINATION WITH DEPARTMENT OF DEFENSE PROGRAMS- (1) Chapter 76 of
 title 38, United States Code, is amended by adding at the end the following
 new subchapter:
`SUBCHAPTER V--STIPEND PROGRAM FOR MEMBERS OF THE SELECTED RESERVE
`Sec. 4351. Authority for program
 `(a) As part of the Educational Assistance Program, the Secretary of
 Veterans Affairs may select qualified individuals to receive assistance
 under this subchapter.
 `(b) To be eligible to receive assistance under this subchapter, an individual
 must be accepted for enrollment or be enrolled as a full-time student at a
 qualifying educational institution in a course of education or training that
 is approved by the Secretary and that leads toward completion of a degree
 in a health profession involving direct patient care or care incident to
 direct patient care.
`Sec. 4352. Eligibility: individuals entitled to benefits under the GI Bill
program for members of the Selected Reserve
 `The Secretary of Veterans Affairs may not approve an application under
 section 4303 of this title of an individual applying to receive assistance
 under this subchapter unless--
 `(1) the individual is entitled to benefits under chapter 106 of title 10; and
 `(2) the score of the individual on the Armed Forces Qualification Test
 was above the 50th percentile.
`Sec. 4353. Amount of assistance
 `The Secretary may pay to a person selected to receive assistance under this
 subchapter the amount of $400 (adjusted in accordance with section 4331
 of this title) for each month of the person's enrollment in a program of
 education or training covered by the agreement of the person entered into
 under section 4303 of this title. Payment of such benefits for any period
 shall be coordinated with any payment of benefits for the same period under
 chapter 106 of title 10.
`Sec. 4354. Obligated service
 `A person receiving assistance under this subchapter shall provide service
 in the full-time clinical practice of the person's profession as a full-time
 employee of the Department for the period of obligated service provided in
 the agreement of such person entered into under section 4303 of this title.
`Sec. 4355. Breach of agreement; liability
 `(a)(1) Subject to paragraph (2), an individual who is receiving or has
 received a reserve member stipend under this subchapter and who fails to
 perform the service for which the individual is obligated under section 4354
 of this title shall be liable to the United States in an amount determined
 in accordance with section 4317(c)(1) of this title.
 `(2) An individual who, as a result of performing active duty (including
 active duty for training), is unable to perform the service for which the
 individual is obligated under section 4354 of this title shall be permitted
 to perform that service upon completion of the active duty service (or
 active duty for training). The Secretary may, by regulation, waive the
 requirement for the performance of the service for which the individual
 is obligated under section 4354 of this title in any case in which the
 Secretary determines that the individual is unable to perform the service
 for reasons beyond the control of the individual or in any case in which the
 waiver would be in the best interest of the individual and the United States.
 `(b) Any amount owed the United States under subsection (a) of this section
 shall be paid to the United States during the one-year period beginning on
 the date of the breach of the agreement.'.
 (2) The table of sections at the beginning of such chapter is amended by
 adding at the end the following new items:
`SUBCHAPTER V--STIPEND PROGRAM FOR MEMBERS OF THE SELECTED RESERVE
`4351. Authority for program.
`4352. Eligibility: individuals entitled to benefits under the GI Bill
program for members of the Selected Reserve.
`4353. Amount of assistance.
`4354. Obligated service.
`4355. Breach of agreement; liability.'.
 (b) PERIODIC ADJUSTMENTS IN AMOUNT OF ASSISTANCE- Section 4331 of such
 title is amended--
 (1) in the first sentence of subsection (a)(1)--
 (A) by striking out `amount and' and inserting in lieu thereof `amount,'; and
 (B) by striking out `amount.' and inserting in lieu thereof `amount, and
 the maximum Selected Reserve member stipend amount.';
 (2) in subsection (b)--
 (A) by redesignating paragraph (3) as paragraph (4); and
 (B) by inserting after paragraph (2) the following new paragraph (3):
 `(3) The term `maximum Selected Reserve member stipend amount' means the
 maximum amount of assistance provided to a person receiving assistance under
 subchapter V of this chapter, as specified in section 4353 of this title
 and as previously adjusted (if at all) in accordance with this subsection.'.
 (c) CONFORMING AMENDMENTS- (1) Section 4301(a) of such title is amended--
 (A) by striking out `and' at the end of paragraph (1);
 (B) by striking out the period at the end of paragraph (2) and inserting
 in lieu thereof `; and'; and
 (C) by adding at the end the following:
 `(3) the Selected Reserve member stipend program provided for under subchapter
 V of this chapter.'.
 (2) Section 4302 of such title is amended by inserting `under subchapter
 I or II of this chapter' in subsections (a) and (b) after `Educational
 Assistance Program'.
 (3) Section 4304 of such title is amended by striking out `subchapter II
 or III' in paragraphs (1)(A), (2)(D), and (5) and inserting in lieu thereof
 `subchapters II, III, or V'.
SEC. 206. ADMINISTRATION.
 (a) IN GENERAL- Chapter 36 of title 38, United States Code, is amended by
 inserting after section 1784 the following new section:
`Sec. 1784A. Procedures relating to computer matching program
 `(a)(1) Notwithstanding section 552a(p) of title 5 and subject to paragraph
 (2) of this subsection, the Secretary may suspend, terminate, reduce,
 or make a final denial of any financial assistance or payment under an
 educational assistance program provided for in chapter 30 or 32 of this
 title or in chapter 106 of title 10 in the case of any individual, or take
 other adverse action against such individual, based on information produced
 by a matching program with the Department of Defense.
 `(2) The Secretary may not take any action referred to in paragraph (1)
 of this subsection until--
 `(A) the individual concerned has been provided a written notice containing
 a statement of the findings of the Secretary based on the matching program,
 a description of the proposed action, and notice of the individual's right
 to contest such findings within 10 days after the date of the notice; and
 `(B) the 10-day period referred to in subparagraph (A) of this paragraph
 has expired.
 `(3) In computing the 10-day period referred to in paragraph (2) of this
 subsection, Saturdays, Sundays, and Federal holidays shall be excluded.
 `(b) For the purposes of subsection (q) of section 552a of title 5, compliance
 with the provisions of subsection (a) of this section shall be considered
 compliance with the provisions of subsection (p) of such section 552a.
 `(c) For purposes of this section, the term `matching program' has the same
 meaning provided in section 552a(a)(8) of title 5.'.
 (b) RATIFICATION- Any use by the Department of Veterans Affairs, during the
 period beginning on July 2, 1990, and ending on the date of the enactment
 of this Act, of any category of information provided by the Department
 of Defense or the Department of Transportation for making determinations
 described in section 413(b) of the Veterans' Benefits Amendments of 1989
 (Public Law 101-237) is hereby ratified.
 (c) CLERICAL AMENDMENT- The table of sections at the beginning of such
 chapter is amended by inserting after the item relating to section 1784
 the following new item:
`1784A. Procedures relating to computer matching programs.'.
 (d) EFFECTIVE DATE DELAYED FOR CERTAIN EDUCATION BENEFITS COMPUTER MATCHING
 PROGRAMS- (1) In the case of computer matching programs between the Department
 of Veterans Affairs and the Department of Defense in the administration
 of education benefits programs under chapters 30 and 32 of title 38 and
 chapter 106 of title 10, United States Code, the amendments made to section
 552a of title 5, United States Code, by the Computer Matching and Privacy
 Protection Act of 1988 (other than the amendments made by section 10(b)
 of that Act) shall take effect on October 1, 1990.
 (2) For purposes of this subsection, the term `matching program' has the
 same meaning provided in section 552a(a)(8) of title 5, United States Code.
SEC. 207. REFUNDS FOR CERTAIN SERVICE ACADEMY GRADUATES.
 (a) IN GENERAL- Upon receipt before January 1, 1992, of an application from
 an individual described in subsection (b)(3), the Secretary of Veterans
 Affairs shall--
 (1) not later than 60 days after receiving such application, refund to
 the individual concerned the amount, if any, of the individual's unused
 contributions to the VEAP Account;
 (2)(A) if the individual has received educational assistance under chapter 32
 of title 38, United States Code, for the pursuit of a program of education,
 pay to the individual (out of funds appropriated to the readjustment benefits
 account) a sum equal to the amount by which the amount of the educational
 assistance that the individual would have received under chapter 34 of such
 title for the pursuit of such program exceeds the amount of the educational
 assistance that the individual did receive under such chapter 32 for the
 pursuit of such program; or
 (B) if the individual has not received educational assistance under such
 chapter 32, pay to the individual (out of funds appropriated to the Department
 of Veterans Affairs Readjustment Benefits account) a sum equal to the amount
 of educational assistance that the individual would have received under
 chapter 34 of such title for the pursuit of a program of education if the
 individual had been entitled to assistance under such program during the
 period ending on December 31, 1989; and
 (3) refund to the Secretary of Defense the unused contributions by such
 Secretary to the VEAP Account on behalf of such individual.
 (b) DEFINITIONS- For purposes of this section--
 (1) the term `VEAP Account' means the Post-Vietnam Era Veterans Education
 Account established pursuant to section 1622(a) of title 38, United States
 Code;
 (2) the term `active duty' has the same meaning given such term by section
 101(21) of such title 38;
 (3) the term `individual described in subsection (b)(3)' means an individual
 who--
 (A) before January 1, 1977, commenced the third academic year as a cadet
 or midshipman at one of the service academies or the third academic year
 as a member of the Senior Reserve Officers' Training Corps in a program
 of educational assistance under section 2104 or 2107 of title 10, United
 States Code;
 (B) served on active duty for a period of more than 180 days pursuant to an
 appointment as a commissioned officer received upon graduation from one of
 the service academies or upon satisfactory completion of advanced training
 (as defined in section 2101 of such title 10) as a member of the Senior
 Reserve Officers' Training Corps;
 (C) after such period of active duty, was discharged or released therefrom
 under conditions other than dishonorable or continued to serve on active
 duty without a break in service; and
 (D) if enrolled under the program of educational assistance provided under
 chapter 32 of title 38, United States Code, submits to the Secretary of
 Veterans Affairs, as part of the application made by the individual under
 subsection (a) in such form and manner as such Secretary shall prescribe
 by January 1, 1991, an irrevocable election to be disenrolled from such
 program at that time; and
 (4) the term `service academies' means the United States Military Academy,
 the United States Naval Academy, the United States Air Force Academy,
 and the United States Coast Guard Academy.
SEC. 208. LIMITATIONS ON CHANGES OF PROGRAMS OF EDUCATION.
 (a) IN GENERAL- Section 1791(b) of title 38, United States Code, is amended
 by striking out `The' through `additional change' and inserting in lieu
 thereof `The Secretary, in accordance with procedures that the Secretary
 may establish, may approve a change other than a change under subsection
 (a) of this section'.
 (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
 on June 1, 1991.
SEC. 209. NAMING OF DEPARTMENT OF VETERANS AFFAIRS MEDICAL CENTER IN SAGINAW,
MICHIGAN.
 The Department of Veterans Affairs medical center in Saginaw, Michigan, shall
 after the date of the enactment of this Act be known and designated as the
 `Aleda E. Lutz Department of Veterans Affairs Medical Center'. Any reference
 to such medical center in any law, regulation, map, document, record, or
 other paper of the United States shall after such date be deemed to be a
 reference to the Aleda E. Lutz Department of Veterans Affairs Medical Center.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

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