H. Rept. 108-211 - VETERANS BENEFITS ACT OF 2003108th Congress (2003-2004)
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108th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 108-211
======================================================================
VETERANS BENEFITS ACT OF 2003
_______
July 15, 2003.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Smith of New Jersey, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 2297]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred the
bill (H.R. 2297) to amend title 38, United States Code, to
modify and improve certain benefits for veterans, and for other
purposes, having considered the same, reports favorably thereon
with amendments and recommends that the bill as amended do
pass.
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Veterans Benefits
Act of 2003''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Expansion of Montgomery GI Bill education benefits for certain
self-employment training.
Sec. 3. Extension in period of eligibility for survivors' and
dependents' education benefits for individuals who are involuntarily
ordered to full-time National Guard duty.
Sec. 4. Extension of Veterans' Advisory Committee on Education.
Sec. 5. Repeal of provisions relating to obsolete education loan
program.
Sec. 6. Retention of Dependency and Indemnity Compensation for
surviving spouses remarrying after age 55.
Sec. 7. Eligibility of surviving spouses who remarry for burial in
national cemeteries.
Sec. 8. Permanent authority for State cemetery grants.
Sec. 9. Reinstatement of veterans vocational training program for
certain pension recipients.
Sec. 10. Increase in amounts for certain adaptive benefits for disabled
veterans.
Sec. 11. Presumptions of service-connection relating to diseases and
disabilities of former prisoners of war.
Sec. 12. Extension of spina bifida benefits for children of Vietnam-era
veterans.
Sec. 13. Permanent authority for housing loans for members of the
Selected Reserve.
Sec. 14. Adjustment to home loan fees and uniformity of fees for
qualifying Reserve members with fees for active duty veterans.
Sec. 15. Reinstatement of minimum requirements for sale of vendee
loans.
Sec. 16. Rate of payment of benefits for certain Filipino veterans and
their survivors residing in the United States.
Sec. 17. Burial benefits for new Philippine scouts residing in the
United States.
Sec. 18. Extension of authority to maintain regional office in the
Republic of the Philippines.
Sec. 19. Outstationing of transition assistance program personnel.
Sec. 20. Forfeiture of benefits for subversive activities.
Sec. 21. Technical amendments related to Jobs for Veterans Act.
Sec. 22. Technical and conforming relating to establishment of Social
Security Administration as an independent agency.
SEC. 2. EXPANSION OF MONTGOMERY GI BILL EDUCATION BENEFITS FOR CERTAIN
SELF-EMPLOYMENT TRAINING.
(a) Definition of Training Establishment.--Section 3452(e) of title
38, United States Code, is amended by striking ``means any'' and all
that follows and inserting ``means any of the following:
``(1) An establishment providing apprentice or other training
on the job, including those under the supervision of a college
or university or any State department of education.
``(2) An establishment providing self-employment on-job
training consisting of full-time training for a period of less
than six months that is needed or accepted for purposes of
obtaining licensure to engage in a self-employment occupation
or required for ownership and operation of a franchise that is
the objective of the training.
``(3) A State board of vocational education.
``(4) A Federal or State apprenticeship registration agency.
``(5) A joint apprenticeship committee established pursuant
to the Act of August 16, 1937, popularly known as the `National
Apprenticeship Act' (29 U.S.C. 50 et seq.).
``(6) An agency of the Federal Government authorized to
supervise such training.''.
(b) Effective Date.--The amendment made by subsection (a) shall take
effect on the date that is six months after the date of the enactment
of this Act and shall apply to self-employment on-job training approved
and pursued on or after that date.
SEC. 3. EXTENSION IN PERIOD OF ELIGIBILITY FOR SURVIVORS' AND
DEPENDENTS' EDUCATION BENEFITS FOR INDIVIDUALS WHO
ARE INVOLUNTARILY ORDERED TO FULL-TIME NATIONAL
GUARD DUTY.
(a) In General.--Section 3512(h) of title 38, United States Code, is
amended by inserting ``or is involuntarily ordered to full-time
National Guard duty under section 502(f) of title 32,'' after ``title
10,''.
(b) Effective Date.--The amendment made by subsection (a) shall take
effect as of September 11, 2001.
SEC. 4. EXTENSION OF VETERANS' ADVISORY COMMITTEE ON EDUCATION.
(a) Extension.--Subsection (c) of section 3692 of title 38, United
States Code, is amended by striking ``December 31, 2003'' and inserting
``December 31, 2009''.
(b) Modification of Membership Requirements.--The second sentence of
subsection (a) of such section is amended by striking ``World War II,
the Korean conflict era, the post-Korean conflict era,''.
(c) Technical Amendment.--Such section is further amended by striking
``chapter 106'' each place it appears and inserting ``chapter 1606''.
SEC. 5. REPEAL OF PROVISIONS RELATING TO OBSOLETE EDUCATION LOAN
PROGRAM.
(a) Termination of Program.--Subchapter III of chapter 36 of title
38, United States Code, is repealed.
(b) Transfer of Loan Fund Balance.--Any balance as of the date of the
enactment of this Act in the Department of Veterans Affairs Education
Loan Fund shall be transferred to the Department of Veterans Affairs
Readjustment Benefits Account.
(c) Discharge of Liability.--The Secretary of Veterans Affairs shall
discharge any outstanding liability of a veteran under such subchapter.
Any overpayment declared under section 3698(e)(1) of that subchapter
shall be waived without further process on the date on which funds are
transferred under subsection (b).
(d) Clerical Amendment.--The table of sections at the beginning of
chapter 36 of such title is amended by striking the items relating to
subchapter III and sections 3698 and 3699.
(e) Conforming Amendments.--(1) Section 3462(a) of such title is
amended by striking paragraph (2).
(2) Section 3485(e)(1) of such title by striking ``(other than an
education loan under subchapter III)''.
(3) Section 3512 of such title is amended by striking subsection (f).
SEC. 6. RETENTION OF DEPENDENCY AND INDEMNITY COMPENSATION FOR
SURVIVING SPOUSES REMARRYING AFTER AGE 55.
(a) Exception to Termination of Benefits Upon Remarriage.--Section
103(d)(2)(B) of title 38, United States Code, is amended by inserting
``1311 or'' after ``under section''.
(b) Effective Date.--The amendment made by subsection (a) shall take
effect on--
(1) the first day of the first month that begins after the
date of the enactment of this Act; or
(2) the first day of the fiscal year that begins in the
calendar year in which this Act is enacted, if later than the
date specified in paragraph (1).
(c) Retroactive Benefits Prohibited.--No benefit may be paid to any
person by reason of the amendment made by subsection (a) for any period
before the effective date specified in subsection (b).
(d) Application for Benefits.--In the case of an individual who but
for having remarried would be eligible for dependency and indemnity
compensation under section 1311 of title 38, United States Code, and
whose remarriage was before the date of the enactment of this Act and
after the individual had attained age 55, the individual shall be
eligible for such compensation by reason of the amendment made by
subsection (a) only if the individual submits an application for such
compensation to the Secretary of Veterans Affairs not later than the
end of the one-year period beginning on the date of the enactment of
this Act.
SEC. 7. ELIGIBILITY OF SURVIVING SPOUSES WHO REMARRY FOR BURIAL IN
NATIONAL CEMETERIES.
(a) Eligibility.--Section 2402(5) of title 38, United States Code, is
amended by striking ``(which for purposes of this chapter includes an
unremarried surviving spouse who had a subsequent remarriage which was
terminated by death or divorce)'' and inserting ``(which for purposes
of this chapter includes a surviving spouse who had a subsequent
remarriage)''.
(b) Effective Date.--The amendment made by subsection (a) shall apply
with respect to deaths occurring on or after January 1, 2000.
SEC. 8. PERMANENT AUTHORITY FOR STATE CEMETERY GRANTS.
Paragraph (2) of section 2408(a) of title 38, United States Code, is
amended--
(1) by striking ``for fiscal year 1999 and for each
succeeding fiscal year through fiscal year 2004''; and
(2) by adding at the end the following new sentence: ``Funds
appropriated under the preceding sentence shall remain
available until expended.''.
SEC. 9. REINSTATEMENT OF VETERANS VOCATIONAL TRAINING PROGRAM FOR
CERTAIN PENSION RECIPIENTS.
(a) Establishment of New Program Period.--Subsection (a)(3) of
section 1524 of title 38, United States Code, is amended by striking
``the period beginning on February 1, 1985, and ending on December 31,
1995'' and inserting ``the five-year period beginning on the date of
the enactment of the Veterans Benefits Act of 2003''.
(b) Conforming Amendment.--Subsection (b)(4) of such section is
amended by striking ``December 31, 1995'' and inserting ``the end of
the program period''.
(c) Outreach.--Such section is further amended by adding at the end
the following new subsection:
``(f) The Secretary shall ensure that the availability of vocational
training under this section is made known through a variety of means,
including the Internet and announcements in Department publications and
other veterans' publications.''.
(d) Reports.--Such section, as amended by subsection (c), is further
amended by adding at the end the following new subsection:
``(g) Not later than two years after the date of the enactment of the
Veterans Benefits Act of 2003, and each year thereafter, the Secretary
shall submit to the Committees on Veterans' Affairs of the Senate and
House of Representatives a report on the operation of this section. The
report shall set forth an evaluation of the vocational training
provided under this section for the period involved, and shall include
an analysis of the cost-effectiveness of the vocational training
provided under this section as well as data on the entered-employment
rate of veterans pursuing such vocational training.''.
(e) Stylistic Amendments.--Such section is further amended--
(1) by striking ``of Veterans Affairs'' in subsection (a)(1);
and
(2) by striking ``of this section'' in subsections (a)(2),
(b)(1), (b)(4) (both places it appears), (c), (d), and (e).
SEC. 10. INCREASE IN AMOUNTS FOR CERTAIN ADAPTIVE BENEFITS FOR DISABLED
VETERANS.
(a) Increase in Assistance Amount for Specially Adapted Housing.--
Section 2102 of title 38, United States Code, is amended--
(1) in the matter preceding paragraph (1) of subsection (a),
by striking ``$48,000'' and inserting ``$50,000''; and
(2) in subsection (b)(2), by striking ``$9,250'' and
inserting ``$10,000''.
(b) Increase in Amount of Assistance for Automobile and Adaptive
Equipment for Certain Disabled Veterans.--Section 3902(a) of such title
is amended by striking ``$9,000'' and inserting ``$11,000''.
(c) Effective Date.--The amendments made by subsections (a) and (b)
shall apply with respect to assistance furnished on or after the date
of the enactment of this Act.
SEC. 11. PRESUMPTIONS OF SERVICE-CONNECTION RELATING TO DISEASES AND
DISABILITIES OF FORMER PRISONERS OF WAR.
Subsection (b) of section 1112 of title 38, United States Code, is
amended to read as follows:
``(b)(1) For the purposes of section 1110 of this title and subject
to the provisions of section 1113 of this title, in the case of a
veteran who is a former prisoner of war--
``(A) a disease specified in paragraph (2) shall be
considered to have been incurred in or aggravated by such
service, notwithstanding that there is no record of such
disease during the period of service; and
``(B) if the veteran was detained or interned as a prisoner
of war for not less than thirty days, a disease specified in
paragraph (3) which became manifest to a degree of 10 percent
or more after active military, naval, or air service shall be
considered to have been incurred in or aggravated by such
service, notwithstanding that there is no record of such
disease during the period of service.
``(2) The diseases specified in this paragraph are the following:
``(A) Psychosis.
``(B) Any of the anxiety states.
``(C) Dysthymic disorder (or depressive neurosis).
``(D) Organic residuals of frostbite, if the Secretary
determines that the veteran was interned in climatic conditions
consistent with the occurrence of frostbite.
``(E) Post-traumatic osteoarthritis.
``(3) The diseases specified in this paragraph are the following:
``(A) Avitaminosis.
``(B) Beriberi (including beriberi heart disease).
``(C) Chronic dysentery.
``(D) Helminthiasis.
``(E) Malnutrition (including optic atrophy associated with
malnutrition).
``(F) Pellagra.
``(G) Any other nutritional deficiency.
``(H) Cirrhosis of the liver.
``(I) Peripheral neuropathy except where directly related to
infectious causes.
``(J) Irritable bowel syndrome.
``(K) Peptic ulcer disease.''.
SEC. 12. EXTENSION OF SPINA BIFIDA BENEFITS FOR CHILDREN OF VIETNAM-ERA
VETERANS.
(a) Eligible Children.--Subchapter I of chapter 18 of title 38,
United States Code, is amended by inserting before section 1802 the
following new section:
``Sec. 1801. Persons eligible for benefits
``An individual is an eligible child for purposes of this subchapter
if the individual is suffering from spina bifida and is--
``(1) a child as defined in section 1821(1) of this title; or
``(2) the natural child, regardless of age or marital status,
of a parent who during the period beginning on October 1 1967,
and ending on May 7 1975, performed active military, naval, or
air service in the Republic of Korea in the area between the
south line of the Demilitarized Zone and a line five miles
south of the Civilian Control Line established with respect to
the Demilitarized Zone, but only if the individual was
conceived after the parent performed such service.''.
(b) Health Care.--Section 1803(a) of such title is amended by
striking ``a child of a Vietnam veteran who is suffering from spina
bifida'' and inserting ``an eligible child''.
(c) Vocational Training and Rehabilitation.--Section 1804(a) of such
title is amended by striking ``a child of a Vietnam veteran who is
suffering from spina bifida'' and inserting ``an eligible child''.
(d) Monetary Allowance.--Section 1805(a) of such title is amended by
striking ``any child of a Vietnam veteran'' and inserting ``any
eligible child''.
(e) Conforming Amendments.--Chapter 18 of such title is amended as
follows:
(1) The heading of the chapter is amended to read as follows:
``CHAPTER 18--DISABILITY BENEFITS FOR CHILDREN OF VIETNAM VETERANS AND
OTHER VETERANS EXPOSED TO HERBICIDE AGENTS''.
(2) The heading of subchapter I is amended to read as
follows:
``SUBCHAPTER I--CHILDREN BORN WITH SPINA BIFIDA''.
(3) The table of sections at the beginning of the chapter is
amended--
(A) by striking the item relating to subchapter I and
inserting the following:
``SUBCHAPTER I--CHILDREN BORN WITH SPINA BIFIDA'';
and
(B) by inserting before the item relating to section
1802 the following new item:
``1801. Persons eligible for benefits.''.
(f) Tables of Chapters.--The items relating to chapter 18 in the
tables of chapters at the beginning of title 38, United States Code,
and at the beginning of part II of such title, are amended to read as
follows:
``18. Disability Benefits for Children of Vietnam Veterans 1801''.
and Other Veterans Exposed to
Herbicide Agents.
SEC. 13. PERMANENT AUTHORITY FOR HOUSING LOANS FOR MEMBERS OF THE
SELECTED RESERVE.
Section 3702(a)(2)(E) of title 38, United States Code, is amended by
striking ``For the period'' and all that follows through ``each'' and
inserting ``Each''.
SEC. 14. ADJUSTMENT TO HOME LOAN FEES AND UNIFORMITY OF FEES FOR
QUALIFYING RESERVE MEMBERS WITH FEES FOR ACTIVE
DUTY VETERANS.
(a) Revised Load Fee Table.--Paragraph (2) of section 3729(b) of
title 38, United States Code, is amended to read as follows:
``(2) The loan fee table referred to in paragraph (1) is as follows:
``LOAN FEE TABLE
------------------------------------------------------------------------
Type of loan Veteran Other obligor
------------------------------------------------------------------------
(A)(i) Initial loan described in 2.00 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other initial loan described
in section 3710(a) other than with
5-down or 10-down (closed before
October 1, 2003)...................
------------------------------------------------------------------------
(A)(ii) Initial loan described in 2.15 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other initial loan described
in section 3710(a) other than with
5-down or 10-down (closed on or
after October 1, 2003, and before
October 1, 2011)...................
------------------------------------------------------------------------
(A)(iii) Initial loan described in 1.40 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other initial loan described
in section 3710(a) other than with
5-down or 10-down (closed on or
after October 1, 2011).............
------------------------------------------------------------------------
(B)(i) Subsequent loan described in 3.30 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other subsequent loan
described in section 3710(a)
(closed before October 1, 2011)....
------------------------------------------------------------------------
(B)(ii) Subsequent loan described in 2.15 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other subsequent loan
described in section 3710(a)
(closed on or after October 1, 2011
and before October 1, 2013)........
------------------------------------------------------------------------
(B)(iii) Subsequent loan described 1.25 NA
in section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other subsequent loan
described in section 3710(a)
(closed on or after October 1,
2013)..............................
------------------------------------------------------------------------
(C)(i) Loan described in section 1.50 NA
3710(a) to purchase or construct a
dwelling with 5-down (closed before
October 1, 2011)...................
------------------------------------------------------------------------
(C)(ii) Loan described in section 0.75 NA
3710(a) to purchase or construct a
dwelling with 5-down (closed on or
after October 1, 2011).............
------------------------------------------------------------------------
(D)(i) Initial loan described in 1.25 NA
section 3710(a) to purchase or
construct a dwelling with 10-down
(closed before October 1, 2011)....
------------------------------------------------------------------------
(D)(ii) Initial loan described in 0.50 NA
section 3710(a) to purchase or
construct a dwelling with 10-down
(closed on or after October 1,
2011)..............................
------------------------------------------------------------------------
(E) Interest rate reduction 0.50 NA
refinancing loan...................
------------------------------------------------------------------------
(F) Direct loan under section 3711.. 1.00 NA
------------------------------------------------------------------------
(G) Manufactured home loan under 1.00 NA
section 3712 (other than an
interest rate reduction refinancing
loan)..............................
------------------------------------------------------------------------
(H) Loan to Native American veteran 1.25 NA
under section 3762 (other than an
interest rate reduction refinancing
loan)..............................
------------------------------------------------------------------------
(I) Loan assumption under section 0.50 0.50
3714...............................
------------------------------------------------------------------------
(J) Loan under section 3733(a)...... 2.25 2.25
------------------------------------------------------------------------
(K) Hybrid loan under section 3707A. 1.25 NA''.
------------------------------------------------------------------------
(b) Conforming Amendments.--(1) Subparagraph (A) of paragraph (4) of
such section is amended to read as follows:
``(A) The term `veteran' means any veteran eligible for the
benefits of this chapter.''.
(2) Such paragraph is further amended by striking subparagraph (B)
and redesignating subparagraphs (C), (D), (E), (F), (G), (H), and (I)
as subparagraphs (B), (C), (D), (E), (F), (G), and (H), respectively.
SEC. 15. REINSTATEMENT OF MINIMUM REQUIREMENTS FOR SALE OF VENDEE
LOANS.
(a) Reinstatement.--Subsection (a) of section 3733 of title 38,
United States Code, is amended by striking paragraph (2).
(b) Increase in Maximum Percentage.--Paragraph (1) of such subsection
is amended--
(1) by striking ``65 percent'' in the first sentence and
inserting ``85 percent'';
(2) by striking ``may be financed'' and inserting ``shall be
financed''; and
(3) by striking the second sentence.
(c) Stylistic Amendments.--Such section is further amended--
(1) by striking ``of this subsection'' after--
(A) ``paragraph (1)'' in subsections (a)(4)(A),
(a)(5), (a)(6), and (c)(2); and
(B) ``paragraph (5)'' in subsection (a)(4)(B)(i); and
(2) by striking ``of this paragraph'' each place it appears
in subsection (a)(4).
SEC. 16. RATE OF PAYMENT OF BENEFITS FOR CERTAIN FILIPINO VETERANS AND
THEIR SURVIVORS RESIDING IN THE UNITED STATES.
(a) Rate of Payment.--Section 107 of title 38, United States Code, is
amended--
(1) in the second sentence of subsection (b), by striking
``Payments'' and inserting ``Except as provided in subsection
(c), payments''; and
(2) in subsection (c)--
(A) by inserting ``and subchapter II of chapter 13
(except section 1312(a)) of this title'' after
``chapter 11 of this title'';
(B) by striking ``in subsection (a)'' and inserting
``in subsection (a) or (b)''; and
(C) by striking ``of subsection (a)'' and inserting
``of the applicable subsection''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to benefits paid for months beginning after the date of the
enactment of this Act.
SEC. 17. BURIAL BENEFITS FOR NEW PHILIPPINE SCOUTS RESIDING IN THE
UNITED STATES.
(a) Benefit Eligibility.--Section 107 of title 38, United States
Code, as amended by section 16, is further amended--
(1) in subsection (b)(2)--
(A) by striking ``and'' and inserting a comma; and
(B) by inserting ``, 23, and 24 (to the extent
provided for in section 2402(8))'' after ``(except
section 1312(a))'';
(2) in the second sentence of subsection (b), as amended by
section 16(a)(1), by inserting ``or (d)'' after ``subsection
(c)'';
(3) in subsection (d)(1), by inserting ``or (b), as otherwise
applicable,'' after ``subsection (a)''; and
(4) in subsection (d)(2), by inserting ``or whose service is
described in subsection (b) and who dies after the date of the
enactment of the Veterans Benefits Act of 2003,'' after
``November 1, 2000,''.
(b) National Cemetery Interment.--Section 2402(8) of such title is
amended by striking ``section 107(a)'' and inserting ``subsection (a)
or (b) of section 107''.
(c) Effective Date.--The amendments made by subsections (a) and (b)
shall apply with respect to deaths occurring after the date of the
enactment of this Act.
SEC. 18. EXTENSION OF AUTHORITY TO MAINTAIN REGIONAL OFFICE IN THE
REPUBLIC OF THE PHILIPPINES.
Section 315(b) of title 38, United States Code, is amended by
striking ``December 31, 2003'' and inserting ``December 31, 2009''.
SEC. 19. OUTSTATIONING OF TRANSITION ASSISTANCE PROGRAM PERSONNEL.
(a) In General.--(1) Chapter 41 of title 38, United States Code, is
amended by adding at the end the following new section:
``Sec. 4113. Outstationing of Transition Assistance Program personnel
``(a) Stationing of TAP Personnel at Overseas Military
Installations.--(1) The Secretary--
``(A) shall station employees of the Veterans' Employment and
Training Service, or contractors under subsection (c), at each
veterans assistance office described in paragraph (2); and
``(B) may station such employees or contractors at such other
military installations outside the United States as the
Secretary, after consultation with the Secretary of Defense,
determines to be appropriate or desirable to carry out the
purposes of this chapter.
``(2) Veterans assistance offices referred to in paragraph (1)(A) are
those offices that are established by the Secretary of Veterans Affairs
on military installations pursuant to the second sentence of section
7723(a) of this title.
``(b) Functions.--Employees (or contractors) stationed at military
installations pursuant to subsection (a) shall provide, in person,
counseling, assistance in identifying employment and training
opportunities, help in obtaining such employment and training, and
other related information and services to members of the Armed Forces
who are being separated from active duty, and the spouses of such
members, under the Transition Assistance Program and Disabled
Transition Assistance Program established in section 1144 of title 10.
``(c) Authority to Contract With Private Entities.--The Secretary,
consistent with such section 1144, may enter into contracts with public
or private entities to provide, in person, some or all of the
counseling, assistance, information and services under the Transition
Assistance Program required under subsection (a).''.
(2) The table of sections at the beginning of such chapter is amended
by adding at the end the following new item:
``4113. Outstationing of Transition Assistance Program personnel.''.
(b) Deadline for Implementation.--Not later than the date that is 90
days after the date of the enactment of this Act, the Secretary of
Labor shall implement section 4113 of title 38, United States Code, as
added by subsection (a), and shall have employees of the Veterans'
Employment and Training Service, or contractors, to carry out that
section at the military installations involved by such date.
SEC. 20. FORFEITURE OF BENEFITS FOR SUBVERSIVE ACTIVITIES.
(a) Addition of Certain Offenses.--Paragraph (2) of section 6105(b)
of title 38, United States Code, is amended--
(1) by inserting ``175, 229,'' after ``sections''; and
(2) by inserting ``831, 1091, 2332a, 2332b,'' after ``798,''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to claims filed after the date of the enactment of this Act.
SEC. 21. TECHNICAL AMENDMENTS RELATED TO JOBS FOR VETERANS ACT.
(a) Job Training and Placement Functions of the Department of
Labor.--(1) Subsection (c)(2)(B)(ii) of section 4102A of such title is
amended by striking ``October 1, 2002'' and inserting ``October 1,
2003''.
(2) The amendment made by paragraph (1) shall take effect as if
included in the enactment of section 4(a) of the Jobs for Veterans Act
(Public Law 107-288; 116 Stat. 2038).
(b) Other Technical Amendments.--(1) Such subsection is further
amended by striking ``, as amended by the Jobs for Veterans Act''.
(2) Subsection (f)(1) of such section is amended by striking ``6
months after the date of the enactment of this section,'' and inserting
``May 7, 2003,''.
SEC. 22. TECHNICAL AND CONFORMING RELATING TO ESTABLISHMENT OF SOCIAL
SECURITY ADMINISTRATION AS AN INDEPENDENT AGENCY.
Title 38, United States Code, is amended as follows:
(1) Section 1322 is amended--
(A) in subsection (a), by striking ``Secretary of
Health and Human Services'' and all that follows
through the period and inserting ``Commissioner of
Social Security, and shall be certified by the
Commissioner to the Secretary upon request of the
Secretary.''; and
(B) in subsection (b)--
(i) by striking ``Secretary of Health and
Human Services'' in the first sentence and
inserting ``Commissioner of Social Security'';
(ii) by striking ``the two Secretaries'' and
inserting ``the Secretary and the
Commissioner''; and
(iii) by striking ``Secretary of Health and
Human Services'' in the second sentence and
inserting ``Commissioner''.
(2) Section 5101(a) is amended by striking ``Secretary of
Health and Human Services'' and inserting ``Commissioner of
Social Security''.
(3) Section 5317 is amended by striking ``Secretary of Health
and Human Services'' in subsections (a), (b), and (g) and
inserting ``Commissioner of Social Security''.
(4)(A) Section 5318 is amended--
(i) in subsection (a), by striking ``Department of
Health and Human Services'' and inserting ``Social
Security Administration''; and
(ii) in subsection (b)--
(I) by striking ``Department of Health and
Human Services'' and inserting ``Social
Security Administration'';
(II) by striking ``Secretary of Health and
Human Services'' the first place it appears and
inserting ``Commissioner of Social Security'';
(III) by striking ``Secretary of Health and
Human Services'' the second place it appears
and inserting ``Commissioner''; and
(IV) by striking ``such Secretaries'' and
inserting ``the Secretary and the
Commissioner''.
(B)(i) The heading of such section is amended to read as
follows:
``Sec. 5318. Review of Social Security Administration death
information''.
(ii) The item relating to that section in the table of
sections at the beginning at chapter 53 is amended to read as
follows:
``5318. Review of Social Security Administration death information.''.
Amend the title so as to read:
A bill to amend title 38, United States Code, to improve
benefits under laws administered by the Secretary of Veterans
Affairs, and for other purposes.
Introduction
The reported bill reflects the Committee's consideration of
bills introduced during the 108th Congress: H.R. 533, H.R. 966,
H.R. 1048, H.R. 1167, H.R. 1716, H.R. 2164, H.R. 2285 and H.R.
2297.
On April 10, 2003, the Subcommittee on Benefits held a
hearing on six bills, including H.R. 533, the Agent Orange
Veterans' Disabled Children's Benefits Act of 2003, introduced
by Honorable Lane Evans, Honorable Ciro D. Rodriguez, Honorable
Bob Filner, Honorable Luis V. Gutierrez, Honorable Corrine
Brown, Honorable Vic Snyder, Honorable Mike McIntyre, Honorable
Bernard Sanders, Honorable Jose E. Serrano, and Honorable Henry
A. Waxman on February 5, 2003; H.R. 966, the Disabled Veterans'
Return-to-Work Act of 2003, introduced by Honorable Henry E.
Brown, Jr. and Honorable Ciro D. Rodriguez, Chairman and then-
Ranking Member, respectively, of the Subcommittee on Benefits,
Honorable Christopher H. Smith and Honorable Lane Evans, on
February 27, 2003; and H.R. 1048, the Disabled Veterans
Adaptive Benefits Improvement Act of 2003, introduced by
Honorable Henry E. Brown, Jr., Honorable Ciro D. Rodriguez,
Honorable Christopher H. Smith, and Honorable Lane Evans on
March 4, 2003.
On June 11, 2003, the Subcommittee on Benefits held a
hearing on eight bills, including H.R. 1167, to permit
remarried surviving spouses of veterans to be eligible for
burial in a national cemetery, introduced on March 6, 2003, by
Honorable Heather Wilson; H.R. 2164, to provide for an
extension in the period of eligibility for survivors' and
dependents' education benefits for members of the National
Guard who are involuntarily ordered to full-time National Guard
duty, introduced on May 20, 2003, by Honorable Jeb Bradley and
Honorable Michael H. Michaud; H.R. 2285, the Servicemembers
Overseas Outreach Act, introduced on June 2, 2003, by Honorable
Michael K. Simpson, Honorable Bob Beauprez, Honorable
Christopher H. Smith, Honorable Lane Evans, Honorable Henry E.
Brown, Jr., Honorable Michael H. Michaud, and Honorable Steve
Buyer; and H.R. 2297, to modify and improve certain benefits
for veterans and for other purposes, introduced on June 2,
2003, by Honorable Christopher H. Smith, Honorable Lane Evans,
Honorable Henry E. Brown, Jr., and Honorable Michael H.
Michaud.
On June 25, 2003, the Subcommittee on Benefits met and
unanimously ordered H.R. 2297, as amended, reported favorably
to the full Committee.
On June 26, 2003, the full Committee met and ordered H.R.
2297 reported favorably, as amended, to the House by unanimous
voice vote.
Summary of the Reported Bill
H.R. 2297, as amended, would:
1. LExpand the Montgomery GI Bill program by authorizing
educational assistance for on-job training in certain self-
employment training programs.
2. LExtend the delimiting date for survivors' and
dependents' education benefits when the eligible individual is
involuntarily ordered to full-time National Guard duty.
3. LExtend the Veterans' Advisory Committee on Education
through December 31, 2009.
4. LRepeal an obsolete VA education loan program
authorization.
5. LProvide that remarriage of the surviving spouse of a
veteran after attaining age 55 would not result in termination
of dependency and indemnity compensation (DIC).
6. LAllow a remarried surviving spouse to retain
eligibility for burial in a national cemetery based on his or
her marriage to a veteran.
7. LMake permanent the State Cemetery Grants Program.
8. LReinstate a VA pilot program to provide vocational
training to newly eligible VA nonservice-connected pension
recipients.
9. LIncrease the specially adapted automobile grant from
$9,000 to $11,000, and increase the specially adapted housing
grants from $48,000 to $50,000 for the most severely disabled
veterans and from $9,350 to $10,000 for less severely disabled
veterans.
10. LAdd cirrhosis of the liver to the list of presumed
service-connected disabilities for former prisoners of war, and
eliminate the requirement that a POW be held for 30 days or
more to qualify for presumptions of service-connection for
certain disabilities: psychosis, any of the anxiety states,
dysthymic disorder, organic residuals of frostbite, and post-
traumatic osteoarthritis.
11. LExpand benefits eligibility to those children with
spina bifida who were born to Vietnam-era veterans who served
in an area of Korea near the demilitarized zone between October
1, 1967 and May 7, 1975.
12. LMake permanent the VA home loan program for members of
the Selected Reserve.
13. LAdjust the funding fee charged to Selected Reserve
home loan applications to the same amount as the amount paid by
active duty servicemembers, and make certain increases in home
loan fees.
14. LReinstate the Department of Veterans Affairs' vendee
loan program.
15. LProvide the full amount of compensation and dependency
and indemnity compensation (DIC) to eligible members of the new
Philippine Scouts and their survivors, as well as the full
amount of DIC paid by reason of service in the organized
military forces of the Commonwealth of the Philippines,
including organized guerilla units, if the individual to whom
the benefit is payable resides in the United States and is
either a citizen of the U.S. or an alien lawfully admitted for
permanent residence.
16. LExtend eligibility for burial in a national cemetery
to new Philippine Scouts, as well as eligibility for burial
benefits, to those who lawfully reside in the United States.
17. LExtend the authority of the Secretary of Veterans
Affairs to maintain a regional office in Manila, Philippines,
through December 31, 2009.
18. LMandate that the Department of Labor place staff in
veterans' assistance offices at overseas military installations
90 days after date of enactment.
19. LExpand the list of serious federal criminal offenses a
conviction for which would result in a bar to all VA benefits.
Background and Discussion
Expansion of Montgomery GI Bill education benefits for
certain self-employment training.--Section 2 of the bill would
expand the Montgomery GI Bill program by authorizing
educational assistance benefits for on-job training of less
than six months in certain self-employment training programs.
Public Law 106-50, the Veterans Entrepreneurship and Small
Business Development Act, requires that all Federal agencies
aggressively support self-employment for veterans and service-
disabled veterans, directly and through public-private
partnerships. This provision would provide those veterans
considering self-employment with improved access to training
benefits, including training related to franchises. This
provision is derived from an Administration proposal.
Extension in period of eligibility for survivors' and
dependents' education benefits for individuals who are
involuntarily ordered to full-time National Guard duty.--
Section 3 of the bill would amend current law to provide that
individuals who qualify for survivors' and dependents'
education benefits under chapter 35 of title 38, United States
Code, and are involuntarily ordered to full-time National Guard
duty under title 32, United States Code, after September 11,
2001, would have their eligibility extended. This section would
allow the survivor or dependent to have the ending date of
their eligibility extended by an amount of time equal to that
period of full-time duty plus 4 months. Current law allows such
an extension only to Reservists called up to active duty after
September 11, 2001.
Extension of Veterans' Advisory Committee on Education.--
Section 4 of the bill would extend, through December 31, 2009,
the Veterans' Advisory Committee on Education, as well as amend
the language to eliminate the requirement that veterans from
certain wartime and post-wartime periods be members of the
Committee. Under current law, the Committee will expire on
December 31, 2003. The Advisory Committee has made a number of
recommendations that have become legislative proposals, and its
discussions and recommendations are a valuable aid in VA's
efforts to administer its education programs. This provision
would also eliminate the requirement that veterans from certain
periods--World War II, Korean conflict era, or post-Korean
conflict era--be required to participate as members of the
Advisory Committee. The change would provide for greater
flexibility in filling positions on the Committee. This
provision is derived from an Administration proposal.
Repeal of provisions relating to obsolete education loan
program.--Section 5 of the bill would repeal the VA education
loan program, in effect since January 1, 1975, and waive any
existing repayment obligations, including overpayments due to
default on such loans. The education loan program is currently
available to issue loans up to a maximum of $2,500 per academic
year to spouses and surviving spouses who are past their
delimiting dates with remaining entitlement to chapter 35
benefits. The population eligible for this program is very
limited, and with other options in the public and private
sectors, there is no longer a demand for the loans. VA has not
issued a loan under this program in several years, but the
government has paid approximately $70,000 a year to administer
it. VA's October 2002 monthly loan statistics show 20 current
education loans in the amount of $14,987.08 and 116 defaulted
education loans totaling $105,908.10; it costs VA more to
administer the loan program on a continuous basis than to
forgive the debts currently outstanding. This provision is
derived from an Administration proposal.
Retention of dependency and indemnity compensation for
surviving spouses remarrying after age 55.--Section 6 of the
bill would allow a surviving spouse who remarries after
attaining age 55 to retain dependency and indemnity
compensation (DIC). Those surviving spouses who remarried after
attaining age 55 but before this provision is enacted would
have one year to apply for reinstatement of their DIC benefit.
DIC is a tax-free monthly benefit paid to the surviving
spouse of a veteran who dies as a result of military service.
While current law prevents payment of DIC during the course of
a subsequent marriage, Public Law 105-178 allowed reinstatement
of this benefit if the remarriage is terminated. As the
Honorable Michael Bilirakis stated in testimony before the
Subcommittee on Benefits on April 11, 2002, ``DIC is the only
federal annuity program that does not allow a widow who is
receiving compensation to remarry at an older age and retain
her annuity.'' It is the Committee's intent that an older
surviving spouse who chooses to remarry should not be
discouraged from doing so by the loss of DIC benefits. Public
Law 107-330 allowed a surviving spouse who remarries after age
55 to retain VA health insurance coverage.
The Committee has not been able to obtain accurate data
with respect to the numbers of surviving spouses likely to be
affected by this provision. The Committee expects the
Department of Veterans Affairs to obtain and maintain accurate
data concerning the number and age of those surviving spouses
who apply for reinstatement of their DIC benefits under this
provision.
Eligibility of surviving spouses who remarry for burial in
national cemeteries.--Section 7 of the bill would allow a
surviving spouse of a veteran to be eligible for burial in a VA
national cemetery based on his or her marriage to the veteran,
regardless of the status of a subsequent marriage. Current law
does not permit the surviving spouse to be buried in a national
cemetery if a remarriage is in effect when the veteran's
surviving spouse is married at the time of death. According to
VA, in cases when this situation has arisen, the veteran's
children and grandchildren, and often the most recent spouse,
support burial of the decedent with a previously deceased
veteran-spouse in a VA national cemetery.
Permanent authority for State cemetery grants.--Section 8
of the bill would make permanent the State Cemetery Grants
Program. Current law authorizes appropriations for making these
grants through fiscal year 2004. The State Cemetery Grants
Program provides grants to assist the states in establishing,
expanding, and improving state-owned veterans' cemeteries.
Increasing the availability of state veterans' cemeteries is
one way to serve veterans who do not reside near a national
cemetery. State cemeteries augment--but do not supplant--VA's
national cemetery program. Since the beginning of the State
Cemetery Grants Program, 127 grants totaling more than $155
million to establish, expand or improve 57 veterans cemeteries
in 31 states have been awarded. This provision is derived from
an Administration proposal.
Reinstatement of veterans' vocational training program for
certain pension recipients.--Section 9 of the bill would
reinstate a VA pilot program, which expired on December 31,
1995, to provide vocational training to newly eligible VA
nonservice-connected pension recipients. The program, open to
those veterans age 45 years or younger, would provide disabled
pension recipients the opportunity to receive training in order
to return to the job market. There are many ways veterans can
and do contribute to the economy. Those veterans receiving
nonservice-connected pension are in effect discouraged from
seeking employment because of the needs-based structure of VA's
Pension Program, whereby every dollar they earn is offset from
the amount of monthly pension they receive. Amounts paid to a
veteran pursuing a course of vocational rehabilitation or
training--including tuition, fees, books, and materials--are
excluded in determining eligibility for and the amount of
pension benefits available. The Committee believes it would be
beneficial to reinstate the pilot program in order to give
veterans considered permanently and totally disabled an
opportunity to obtain employment rather than requiring these
veterans to rely solely on the VA pension program and health
care system for the remainder of their lives.
Increase in amounts for certain adaptive benefits for
disabled veterans.--Section 10(a) of the bill would increase
the grants for specially adapted housing for severely disabled
veterans from $48,000 to $50,000, and would increase the amount
for less severely disabled veterans from $9,250 to $10,000.
Under current law, the Secretary is authorized to assist
eligible veterans in acquiring suitable housing and adaptations
with special fixtures made necessary by the nature of the
veteran's service-connected disability, and with the necessary
land. Section 10(b) of the bill would increase the one-time
reimbursement VA may pay to an eligible disabled servicemember
or veteran to purchase an automobile from $9,000 to $11,000.
Presumptions of service-connection relating to diseases and
disabilities of former prisoners of war.--Section 11 of the
bill would add cirrhosis of the liver to the disabilities
presumptively service-connected for former prisoners of war, as
well as provide a presumption of service-connection without
regard to length of confinement for certain psychiatric
disabilities as well as cold weather injuries and traumatic
arthritis. Current law requires former POWs to have been
confined for at least 30 days before they qualify for a
presumption of service-connection for certain disabilities. At
the time that POWs originally were awarded presumptions of
service-connection for certain disabilities, most of the
disabilities were related to malnutrition. Short-term prisoners
of war were rare. See Bills to Increase Compensation Payments
for Service-connected Disabled Veterans and Increase Income
Limits and Rates for Non-service-connected Pensioners: Hearings
Before the Subcommittee on Compensation and Pension of the
Committee on Veterans' Affairs, House of Representatives, 91st
Congress, Second Session, (May 26-27, June 3, 1970).
Prisoners of war in more recent conflicts have been
interred for shorter periods of time. All the POWs from
Operation Iraqi Freedom were confined for less than 30 days.
The VA's Advisory Committee on Former Prisoners of War has
recommended that the 30-day requirement be eliminated for all
presumptive conditions. Biennial Report of the Advisory
Committee on Former Prisoners of War (transmitted to the House
Committee on Veterans' Affairs, December 4, 2001). This
provision would eliminate the 30-day requirement for all
psychiatric conditions, cold weather-related injuries, and
post-traumatic arthritis. The Committee notes that no
durational requirement is indicated in the criteria for
diagnosis of post-traumatic stress disorder, a common POW
disability. Likewise, service-connection for POWs based on cold
weather-related injuries are more properly related to
internment in climatic conditions consistent with the
occurrence of frostbite. Frostbite can occur within hours if
the temperature is low enough. Post-traumatic arthritis is a
condition which results from trauma; trauma can occur in a
matter of seconds. While some length of internment may be
appropriate for disabilities related to nutritional
deficiencies, there is no scientific evidence to support a
length of confinement requirement for psychiatric conditions,
cold injuries and post-traumatic arthritis. During the hearing
on April 10, 2003, the Veterans of Foreign Wars strongly urged
the Committee to eliminate the 30-day requirement for
presumptive conditions in order to ``include those POWs who
have been held for shorter intervals but have certainly
suffered most of the same physical and psychological trauma as
other POWs.''
The Committee also notes that the Institute of Medicine
(IOM) has conducted follow-up studies of American POWs.
According to the IOM, there is an increased mortality from
cirrhosis of the liver in former POWs as compared to the
general population. In proposing regulations to provide a
presumption of service-connection for former POWs with
cirrhosis, the VA stated: ``Cirrhosis mortality was not found
to be associated with any differences in alcohol consumption
among World War II and Korean POWs and Korean controls, which
were similar to U.S. males. Therefore, it appears that alcohol
consumption does not provide an explanation for the higher
mortality rates identified in POWs.'' 68 F.R. 6680 (February
10, 2003.) The bill accordingly provides for a statutory
presumption of service-connection for cirrhosis of the liver.
Extension of spina bifida benefits for children of Vietnam-
era veterans.--Section 12 of the bill would provide benefits
under chapter 18 of title 38, United States Code, to the
children of veterans who currently are disabled by spina bifida
and who were conceived after a natural parent served in an area
of Korea near the demilitarized zone between October 1, 1967
and May 7, 1975. Current law restricts VA disability payments
to those children with spina bifida whose natural parent served
in the Republic of Vietnam during the period beginning on
January 9, 1962 through May 7, 1975. The payments are based
upon a finding by the IOM ``that there was limited/suggestive
evidence of an association between exposure to the herbicides
considered in this report and spina bifida in children of
veterans.'' Veterans and Agent Orange Update 2000 (VAO 2000)
(National Academy Press: Washington D.C. 2001) at p. 431. This
standard has been used to provide a presumption of service-
connection for a number of disabilities associated with
exposure to Agent Orange and other Vietnam-era herbicides.
According to the Institute of Medicine Report, dioxin is
retained in the body for some time. ``TCDD [dioxin] has a mean
half life of 7.6 years [in humans] and elimination is inversely
proportional to body fat content . . .'' VAO 2000 at 24.
The Department of Defense (DOD) had advised the Committee
on Veterans' Affairs that the herbicides used in Vietnam were
also used for several years beginning with testing in 1967 in
the Republic of Korea, south of the demilitarized zone (DMZ).
DOD has estimated that approximately 12,056 servicemembers were
potentially exposed to herbicides associated with spina bifida
when it was used during 1968 and 1969. The Committee expects
that the children of these former servicemembers deployed in
the units identified by DOD and any other veterans who can
document service in the area between the DMZ and an area five
miles south of the Civilian Control line would qualify for
benefits under the bill.
During its hearing on April 10, 2003, the Committee
received testimony from Mr. Michael Ruzalski of Pennsylvania
who was born with spina bifida. Mr. Ruzalski was conceived
after his father served during 1968-1969 in the Korean DMZ. He
testified that under current law, VA denied his application for
benefits related to spina bifida because his father's herbicide
exposure occurred in the Korean DMZ, rather than in the
Republic of Vietnam.
Permanent authority for housing loans for members of the
Selected Reserve.--Section 13 of the bill would make permanent
the home loan program for members of the Selected Reserve. In
1992, Congress granted eligibility for VA home loans to persons
who served in the Selected Reserve (which includes the National
Guard). This benefit is a useful recruiting and retention tool
for members of the Selected Reserve. Under current law, the
program is scheduled to expire on September 30, 2009.
In order to qualify for this benefit, a member of the
Selected Reserve must have honorably served for at least six
years and meet other requirements. In recent years, reservists
have been increasingly called upon to participate on active
duty for extended periods to support the national defense. As
the recent actions in Afghanistan and Iraq demonstrate,
reservists are an integral part of America's ``total force.''
They have earned the right to participate in VA's home loan
program on a permanent and equal basis.
Adjustment to home loan fees and uniformity of fees for
qualifying Reserve members with fees for active duty
veterans.--Section 14 of the bill would amend the Loan Fee
Table to provide uniformity in the funding fees charged to
members of the Selected Reserve and active duty veterans for VA
home loans. Under current law, in most cases a reservist pays a
funding fee that is 0.75 percent higher than the fee charged to
veterans who have served on active duty. For example, the
current fee for a veteran to obtain an initial VA home loan
with no down payment is 2 percent; a reservist is charged a fee
of 2.75 percent for the same loan. Reservists would now pay 2
percent, as well. Reservists who have a service-connected
disability are exempt from the fee.
According to VA, members of the Selected Reserve have a
lower foreclosure rate than other loan guaranty beneficiaries.
Since its inception, the foreclosure rates for members of the
Selected Reserve have been almost one-third lower than that of
other veterans; therefore, a higher rate is not justified on
the basis of foreclosure risk. Reservists deserve equality in
fees with other veterans.
In order to pay the cost of equalizing benefits between
reservists and other veterans, section 14 of the bill would
also increase the home loan guaranty fees for veterans
qualifying for a second or subsequent home loan with no down
payment. The bill would amend the Loan Fee Table to increase
the fees for veterans who obtain a subsequent VA home loan with
no down payment from 3 percent to 3.3 percent for loans closed
before October 1, 2011. This fee would be reduced to 2.15
percent for loans closed between October 1, 2011 and September
30, 2013. This section would increase from 1.25 percent to 1.4
percent the fee on initial loans closed on or after October 1,
2011. It would create a fee of 2.15 percent on loans closed on
or after October 1, 2003 and before October 1, 2011. It would
also create a 1.25 percent fee for hybrid loans made under a
pilot program.
Reinstatement of minimum requirements for sale of vendee
loans.--Section 15 of the bill would reinstate the vendee loan
program, which VA administratively terminated on January 23,
2003. When a purchaser agrees to buy a foreclosed VA home, VA
often offers to finance the sale by establishing a vendee loan
to encourage the prompt sale of the home. Vendee loans are made
at market interest rates and often require a down payment.
Borrowers are assessed a 2.25 percent funding fee.
The vendee loan program is based on sound business
principles, and there is an ample body of empirical data
indicating that offering vendee financing is cost effective to
the government. The Committee views vendee loans as an
important tool to obtain a higher return on property sales,
which reduces the overall cost of program operations. The bill
would require the the Secretary of Veterans Affairs to operate
a vendee home loan program for some loans.
Rate of payment of benefits for certain Filipino veterans
and their survivors residing in the United States.--Section 16
of the bill would provide the full amount of compensation and
dependency and indemnity compensation (DIC) to eligible members
of the new Philippine Scouts and their survivors, as well as
the full amount of DIC paid by reason of service in the
organized military forces of the Commonwealth of the
Philippines, including organized guerilla units, if the
individual to whom the benefit is payable resides in the United
States and is either a citizen of the U.S. or an alien lawfully
admitted for permanent residence. Under current law, benefits
to Filipino veterans are restricted to a $0.50 on-the-dollar
limitation, based on the significant difference in the U.S.
average per capita income and cost-of-living and the Philippine
average per capita income and cost-of-living.
In the case of those Filipino veterans and their dependents
and survivors who reside in the United States and therefore
face living expenses comparable to United States veterans and
their dependents and survivors, limiting the payment of
benefits may result in undue hardships to eligible Filipino
beneficiaries.
Burial benefits for new Philippine scouts residing in the
United States.--Section 17 of the bill would extend eligibility
for national cemetery burial to new Philippine Scouts who
lawfully reside in the United States. This section would also
extend eligibility for other in-kind burial benefits on the
same basis as such benefits are provided under current law to
persons who served in the organized military forces of the
Commonwealth of the Philippines, including Commonwealth Army
veterans. This provision is consistent with achieving parity in
veterans' benefits among similarly situated Filipino
beneficiaries lawfully residing in the United States.
Extension of authority to maintain regional office in the
Republic of the Philippines.--Section 18 of the bill would
extend VA's authority to operate a regional office in the
Republic of the Philippines through December 31, 2009. Under
current law, this authority expires on December 31, 2003.
Congress has periodically extended this authority at VA's
request in recognition that a regional office in the
Philippines is the most cost-effective means of administering
VA programs for beneficiaries residing there, in addition to
providing an on-site presence to deter potential fraud. The
Committee acknowledges the important contributions of the staff
of the Manila Regional Office in cooperating with a recent VA
Inspector General effort to identify and correct erroneous
payments to veterans residing in the Philippines. This
provision is derived from an Administration proposal.
Outstationing of transition assistance program personnel.--
Section 19 of the bill would require the Department of Labor to
place staff in veterans' assistance offices where VA staff are
located at overseas military installations 90 days after date
of enactment. Such staff would help transitioning
servicemembers obtain civilian jobs. DOD and DOL data show that
servicemembers who attend pre-separation employment seminars
have a better chance of finding long-term, sustained
employment. Current law authorizes the Department of Labor to
place staff in veterans' assistance offices on military
installations, both foreign and domestic. However, the
Department of Labor has placed staff in domestic locations
only. This section would require the Department of Labor to
follow VA's model in staffing overseas installations. It would
also authorize the Department of Labor to exceed the number of
VA locations and place staff in more locations abroad.
Forfeiture of benefits for subversive activities.--Section
20 of the bill would amend current law to supplement the list
of serious federal criminal offenses for which a veteran's
conviction results in a bar to VA benefits, including burial in
a national cemetery. The six additional criminal offenses are:
section 175 of title 18, United States Code, prohibitions with
respect to biological weapons; section 229 of title 18, United
States Code, prohibited activities with respect to chemical
weapons; section 831 of title 18, United States Code,
prohibited transactions involving nuclear materials; section
1091 of title 18, United States Code, genocide; section 2332a
of title 18, United States Code, use of certain weapons of mass
destruction; and section 2332b of title 18, United States Code,
acts of terrorism transcending national boundaries. This
provision is derived from an Administration proposal.
Section-By-Section Analysis
Section 1 of the bill would provide that this Act may be
cited as the ``Veterans Benefits Act of 2003''.
Section 2(a) of the bill would amend section 3452(e) of
title 38, United States Code, to define a training
establishment as (1) an establishment providing apprentice or
other training on the job, including those under the
supervision of a college or university or any State department
of education, (2) an establishment providing self-employment
on-job training consisting of full-time training for a period
of less than six months that is needed or accepted for purposes
of obtaining licensure to engage in a self-employment
occupation or required for ownership and operation of a
franchise that is the objective of training, (3) a State board
of vocational training, (4) a Federal or State apprenticeship
registration agency, (5) a joint apprenticeship committee
established pursuant to the Act of August 16, 1937, popularly
known as the ``National Apprenticeship Act'' (29 U.S.C. 50 et
seq.), (6) an agency of the Federal Government authorized to
supervise such training.
Section 2(b) of the bill would provide that the changes
made by this section shall take effect on the date that is six
months after the date of enactment of this Act and shall apply
to self-employment on-job training approved and pursued on or
after that date.
Section 3(a) of the bill would amend section 3512(h) of
title 38, United States Code, to include those involuntarily
ordered to full-time National Guard duty under section 502(f)
of title 32, United States Code.
Section 3(b) of the bill would provide that the change made
by this section shall take effect as of September 11, 2001.
Section 4(a) of the bill would amend section 3692(c) of
title 38, United States Code, to extend the Veterans' Advisory
Committee on Education to December 31, 2009.
Section 4(b) of the bill would amend section 3692(a) of
title 38, United States Code, by striking World War II, the
Korean conflict era, and the post-Korean conflict era.
Section 5(a) of the bill would repeal subchapter III of
chapter 36 of title 38, United States Code, which authorizes
loans to veterans enrolled in school.
Section 5(b) of the bill would transfer the loan fund
balance as of the date of enactment from the Department of
Veterans Affairs Education Loan Fund to the Department of
Veterans Affairs Readjustment Benefits Account.
Section 5(c) of the bill would require the Secretary of
Veterans Affairs to discharge any outstanding liability of a
veteran under subchapter III.
Section 6(a) of the bill would amend section 103(d)(2)(B)
of title 38, United States Code, to provide that remarriage of
a surviving spouse after attaining age 55 shall not bar the
furnishing of benefits under section 1311 of title 38, United
States Code.
Section 6(b) of the bill would provide that changes made by
this section shall take effect on (1) the first day of the
first month that begins after the date of enactment of this
Act, or (2) the first day of the fiscal year that begins in the
calendar year in which this Act is enacted, if later than the
date specified in paragraph (1).
Section 6(c) of the bill would prohibit any benefit from
being paid to any person by reason of subsection (a) for any
period before the effective date specified in subsection (b).
Section 6(d) of the bill would provide that in the case of
an individual who but for having remarried would be eligible
for dependency and indemnity compensation under section 1311 of
title 38, United States Code, and whose remarriage was before
the date of the enactment of this Act and after the individual
attained age 55, the individual shall be eligible for such
compensation by reason of the amendment made in subsection (a)
only if the individual submits an application for such
compensation to the Secretary of Veterans Affairs not later
than the end of the one-year period beginning on the date of
the enactment of this Act.
Section 7(a) of the bill would amend section 2402(5) of
title 38, United States Code, to provide that a surviving
spouse who had a subsequent marriage which had not been
terminated at the time of death may be eligible for interment
in a national cemetery.
Section 7(b) of the bill would provide that the change made
by this section shall take effect with respect to deaths
occurring on or after January 1, 2000.
Section 8 of the bill would make permanent the authority
for state cemetery grants.
Section 9(a) of the bill would reinstate vocational
training for certain pension recipients under section 1524 of
title 38, United States Code, for a five-year period beginning
on the date of enactment of this Act.
Section 9(c) of the bill would amend section 1524 of title
38, United States Code, to require the Secretary of Veterans
Affairs to ensure that the availability of vocational training
under this section is made known through a variety of means,
including the Internet and announcements in Department
publications and other veterans' publications.
Section 9(d) of the bill would require the Secretary, not
later than two years after the date of enactment of this Act
and each year thereafter, to submit to the Committees on
Veterans' Affairs of the Senate and the House of
Representatives a report on the operation of this section. The
report shall set forth an evaluation of the vocational training
provided under this section for the period involved, and shall
include an analysis of the cost-effectiveness of the vocational
training provided under this section as well as data on the
entered-employment rate of veterans pursuing such vocational
training.
Section 10(a) of the bill would amend section 2102 of title
38, United States Code, by increasing the Specially Adapted
Housing Grant for veterans with severe service-connected
disabilities from $48,000 to $50,000 and the Special Home
Adaptation Grant for veterans less severely disabled from
$9,250 to $10,000.
Section 10(b) of the bill would amend section 3902(a) of
title 38, United States Code, by increasing the amount of
assistance for automobile and adaptive equipment for certain
disabled veterans from $9,000 to $11,000.
Section 10(c) of the bill would provide that the changes
made in this section shall apply to assistance furnished on or
after the date of enactment of this Act.
Section 11 of the bill would amend subsection (b) of
section 1112 of title 38, United States Code, to provide a
presumption of service-connection under paragraph (2) of
section 1112 without regard to the length of captivity, and add
cirrhosis of the liver to paragraph (3) of section 1112.
Section 12 of the bill would amend subchapter I of chapter
18 of title 38, United States Code, to include the natural
child, regardless of age or marital status, of a parent who
during the period beginning on October 1, 1967 and ending on
May 7, 1975, performed active military, naval, or air service
in the Republic of Korea in the area between the south line of
the Demilitarized Zone and a line five miles south of the
Civilian Control Line established with respect to the
Demilitarized Zone, but only if the individual was conceived
after the parent performed such service.
Section 13 of the bill would amend section 3702(a)(2)(E) of
title 38, United States Code, to provide permanent authority
for housing loans for members of the Selected Reserve.
Section 14 of the bill would amend paragraph (2) of section
3729(b) of title 38, United States Code, to provide uniform
home loan fees for qualifying members of the Selected Reserve
and active duty veterans, and would increase the fees for
initial and second or subsequent use of the VA home loan
program with no down payment.
Section 15(a) of the bill would reinstate the minimum
requirements for sale of vendee loans. With respect to current
law section 3733(a) of title 38, United States Code, section
15(a) would strike paragraph 2.
Section 15(b) of the bill would amend current section
3733(a)(1) of title 38, United States Code, by requiring that
not more than 85 percent, nor fewer than 50 percent, of the
purchases made during any fiscal year of real property acquired
by the Secretary as the result of a defaulted loan may be
financed by a loan made by the Secretary. This section would
also strike the current authority to increase to 80 percent the
maximum percentage in any fiscal year of real property acquired
by the Secretary as a result of loan defaults.
Section 16(a) of the bill would permit new Philippine
Scouts to receive benefits comparable to Commonwealth Army
veterans. This subsection would also amend the rates of payment
under section 107 of title 38, United States Code, and under
subchapter II of chapter 13 of title 38, United States Code,
for qualified Filipino veterans and their survivors lawfully
residing in the United States.
Section 16(b) of the bill would provide that the amendments
made by subsection (a) shall apply to benefits paid for months
beginning after the date of the enactment of this Act.
Section 17(a) of the bill would amend section 107 of title
38, United States Code, as amended by section 16 of this Act,
to extend eligibility for burial benefits for new Philippine
Scouts residing in the United States.
Section 17(b) of the bill would amend section 2402(8) of
title 38, United States Code, by striking ``section 107(a)''
and inserting ``subsection (a) or (b) of section 107'' to
provide for national cemetery interment of new Philippine
Scouts.
Section 17(c) of the bill would provide that the amendments
made by subsections (a) and (b) shall apply with respect to
deaths occurring after the date of the enactment of this Act.
Section 18 of the bill would extend the VA's authority to
maintain a regional office in the Republic of the Philippines
through December 31, 2009.
Section 19(a) of the bill would amend chapter 41 of title
38, United States Code, by adding a new section, ``4113.
Outstationing of Transition Assistance Program personnel.''
New section 4113(a) would require the Secretary of Labor
station employees of the Veterans' Employment and Training
Service, or contractors under subsection (c), at those veterans
assistance offices established by the Secretary of Veterans
Affairs on military installations pursuant to the second
sentence of section 7723(a) of title 38, United States Code.
The Secretary of Labor would be authorized to station such
employees or contractors at such other military installations
outside the United States as the Secretary, after consultation
with the Secretary of Defense, determines to be necessary to
carry out the purposes of this section.
New section 4113(b) would require employees (or
contractors) stationed at military installations pursuant to
subsection (a) to provide, in person, counseling, assistance in
identifying employment and training opportunities, help in
obtaining such employment and training, and other related
information and services to members of the Armed Forces who are
being separated from active duty, and the spouses of such
members, under the Transition Assistance Program and Disabled
Transition Assistance Program established in section 1144 of
title 10, United States Code.
New section 4113(c) would provide the Secretary the
authority to enter into contracts with public or private
entities to provide, in person, some or all of the counseling,
assistance, information and services under the Transition
Assistance Program required under subsection (a).
Section 19(b) of the bill would require that not later than
the date that is 90 days after the date of enactment of this
Act, the Secretary of Labor implement section 4113 of title 38,
United States Code, as added by subsection (a), and have
employees of the Veterans' Employment and Training Service, or
contractors, carry out that section at the military
installations involved by such date.
Section 20(a) of the bill would amend paragraph (2) of
section 6105(b) of title 38, United States Code, to expand the
list of serious federal criminal offenses that bar an
individual, convicted after September 1, 1959, from receiving
gratuitous benefits (including the right to burial in a
national cemetery). This subsection of the bill would add
sections 175, 229, 831, 1091, 2332a, and 2332b, of title 18,
United States Code, to the list.
Section 20(b) of the bill would provide that the amendments
made by subsection (a) shall apply to claims filed after the
date of enactment of this Act.
Performance Goals and Objectives
The reported bill would authorize veterans' benefits
enhancements and program improvements under laws administered
by the Department of Veterans Affairs and the Department of
Labor. Performance goals and objectives established in their
annual performance plans are subject to the Committee's regular
oversight.
Statements of the Views of the Administration
Statement of Daniel L. Cooper, Under Secretary for Benefits, Before the
Subcommittee on Benefits, House Committee on Veterans' Affairs, April
10, 2003
Mr. Chairman and Members of the Committee, thank you for the
opportunity to testify today on several bills of great interest to
veterans.
* * * * * * *
h.r. 533
H.R. 533, the ``Agent Orange Veterans' Disabled Children's Benefits
Act of 2003,'' would amend chapter 18 of title 38, United States Code,
to authorize VA to provide a monetary allowance and other benefits to a
person suffering from spina bifida who is natural child, regardless of
age or marital status, of a parent who performed ``qualifying
herbicide-risk service,'' if the person was conceived after such
service. A parent would be considered to have performed ``qualifying
herbicide-risk service'' if, while performing active military, naval,
or air service, he or she ``served in an area in which a Vietnam-era
herbicide agent was used during a period during which such agent was
used in that area; or . . . otherwise was exposed to a Vietnam-era
herbicide agent.'' The term ``Vietnam-era herbicide agent'' would be
defined by reference to current 38 U.S.C. Sec. 1116(a)(3). VA does not
support this bill.
Congress has repeatedly acted since 1979 to ensure that the Federal
Government investigates the health effects of exposure to herbicides
containing dioxin and compensates veterans who served in the Republic
of Vietnam during the Vietnam era and suffered disability as a result
of that exposure. Because of the ``concern and apprehension among
veterans regarding the health effects of herbicides,'' Congress
mandated an epidemiologic study by VA of the effects of exposure to
dioxin in the Veterans Health Programs Extension and Improvement Act of
1979. Congress also required VA to review and scientifically analyze
literature relating to possible long-term health effects of human
exposure to dioxin. In 1981, Congress authorized VA to provide hospital
and nursing home care to certain veterans exposed during service to
dioxin or ionizing radiation for conditions which, although not shown
to have resulted from such exposure, are not found to have resulted
from a cause other than such exposure. The Veterans' Dioxin and
Radiation Exposure Compensation Standards Act of 1984 directed VA to
issue regulations to establish guidelines and, where appropriate,
standards and criteria for the resolution of benefit claims based on
exposure to herbicides containing dioxin in service in the Republic of
Vietnam during the Vietnam era. The act also required VA to make
specific findings, either positive or negative, regarding service
connection as to three diseases, chloracne, porphyria cutanea tarda,
and soft-tissue sarcoma.
In 1991, Congress added section 1116 (formerly section 316) to
title 38, United States Code, establishing a presumption of service
connection, applicable to veterans who served in the Republic of
Vietnam during the Vietnam era, for three diseases. The act also called
for VA to contract with the National Academy of Sciences to perform a
review and evaluation of the scientific evidence regarding the
association between disease and exposure to herbicides used in
connection with the Vietnam War and each disease suspected of
association with such exposure. Congress amended section 1116 in 1994
and 2001 by adding five conditions to the list of diseases presumed to
be service connected in Vietnam veterans.
More recently, Congress has enacted legislation to provide a
monetary allowance and other benefits to the children of Vietnam
veterans who were born with spina bifida, as well as to children with
certain other birth defects who are the natural children of women
veterans who served in the Republic of Vietnam during the Vietnam era.
Congress' legislative enactments indicate its recognition of the
unique circumstances of service in Vietnam-circumstances including the
special sacrifices made by veterans of that war, and the great
uncertainties regarding exposures of individual veterans to aerially
applied herbicides. H.R. 533 would extend benefits Congress bestowed
upon the affected children of those veterans to children of veterans
who did not serve under those circumstances. In addition, H.R. 533's
language is so vague as to be almost impossible to administer. Under
that language, an individual would be considered to have performed
``qualifying herbicide-risk service'' if he or she, while performing
active service, ``served in an area in which a Vietnam-era herbicide
agent was used during a period when such agent was used in that area.''
The vagueness of the terms ``area,'' ``was used,'' and ``during a
period when'' is sure to generate substantial litigation over what
Congress intended by this language.
VA estimates that enactment of H.R. 533 would result in direct
costs of $60.8 million in FY 2004 and $760.7 million over the ten-year
period FY 2004-2013. In addition, VA estimates administrative costs of
$357,000 for FY 2004 and $ 1.73 million for the ten-year period FY
2004-2013.
* * * * * * *
h.r. 1048
Specially Adapted Housing
The other Specially Adapted Housing proposal is contained in
section 2 of H.R. 1048, the ``Disabled Veterans Adaptive Benefits
Improvement Act of 2003.'' This section would increase the maximum
Specially Adapted Housing grants. VA favors such increases, provided
offsetting savings may be found.
Under H.R. 1048, the maximum Specially Adapted Housing grant
authorized by section 2101(a) would be increased from $48,000 to
$50,000. In addition, the maximum Special Housing Adaptations grant
authorized by section 2101(b) would be increased from $9,250 to
$10,000. These grants were last increased by Public Law 107-103,
enacted December 27, 2001.
VA estimates that approximately 600 veterans per year will receive
specially adapted housing assistance, of which about 92.5 percent will
qualify for the grant authorized by section 2101(a). VA estimates the
cost of enacting section 2 of H.R. 1048 would be $1.14 million per
year, with a total 10-year cost of $11.4 million.
Assistance for Automobile and Adaptive Equipment
Section 3 of H.R. 1048 would increase from $9,000 to $11,000 the
maximum amount that VA may pay under 38 U.S.C. Sec. 3902(a) to provide
or assist in providing an automobile or other conveyance to eligible
persons.
The maximum automobile allowance was also last increased to the
current $9,000 on December 27, 2001.
VA estimates the total benefits cost of both provisions of H.R.
1048 would be $3.3 million for FY 2004 and $33.3 million for the ten-
year period FY 2004-2013. Because these benefits were last increased
just 16 months ago, and these costs are not included in the President's
budget request, we are unable to support enactment of H.R. 1048.
However, we will remain vigilant and recommend increases if there is a
significant erosion in the value of these benefits due to inflation.
* * * * * * *
h.r. 966
Mr. Chairman, H.R. 966, the ``Disabled Veterans' Return-to-Work Act
of 2003,'' would amend provisions of 38 U.S.C. Sec. 1524 to reinstate a
program of vocational training for certain pension recipients that was
in place between February 1, 1985, and December 31, 1995. That
temporary program, established pursuant to the Veterans' Benefits
Improvement Act of 1984, Pub. L. No. 98-543, required the Secretary of
Veterans Affairs to determine whether the achievement of a vocational
goal was reasonably feasible in the case of certain veterans awarded
pension during the program period. If the achievement of such a goal
was found to be feasible, these veterans were offered the opportunity
to pursue programs of vocational training consisting of vocationally
oriented and other services and assistance of the same kind provided
under the vocational rehabilitation program authorized under chapter 31
of title 38, United States Code. These services and assistance did not
include subsistence allowances, loans, or automobile adaptive
equipment. Once a program of training was completed, a veteran could
also receive employment assistance. The law limited the number of
evaluations to be performed to not more than 3,500 veterans during any
12-month period. The initial program period ran from February 1, 1985,
to January 31, 1992.
Initially, the law required that a veteran under the age of 50 who
was awarded pension during the program period be evaluated with respect
to his or her potential for rehabilitation. It required that the
evaluation include a personal interview by a VA employee trained in
vocational counseling. If the veteran refused to participate in the
evaluation, his or her pension was suspended until he or she
participated in an evaluation. Subsequent participation in the
vocational training itself was voluntary. For a veteran pension
recipient 50 years of age or older, the program of vocational training
was totally voluntary. If, upon application by such a veteran-
pensioner, VA made a preliminary finding on the basis of information in
the application that, with the assistance of a vocational training
program, the veteran had good potential for achieving employment, VA
was authorized, upon the veteran's request, to evaluate the veteran to
further determine whether the achievement of a vocational goal was
reasonably feasible.In 1992, Public Law 102-562 eliminated the
limitation on the number of program participants who may be evaluated
annually and amended the program for veterans under age 45, rather than
under age 50, who were awarded pension during the program period so as
to (A) require the Secretary, based on information on file with VA, to
make a preliminary finding whether the veteran, with the assistance of
a VA vocational training program, had a good potential for achieving
employment; (B) if that potential was found to exist, required the
Secretary to solicit from the veteran an application for VA vocational
training; and (C) if the veteran applied for training, required the
Secretary to provide an evaluation to determine whether the achievement
of a vocational goal was reasonably feasible. In addition, the program
was opened to veterans age 45 and older who had been awarded pension
before the program period. That Public Law also extended the program
ending date until December 31, 1995. No further action was taken by
Congress, and by operation of law, the program ended on December 31,
1995.
During the period February 1, 1985, through January 31, 1989, VA
evaluated approximately 9,468 veterans under the program. Of these,
2,838 were found to be feasible for training. Some 468 veterans
participated in programs of vocational training. Sixty-five veterans
completed that training. Fifty-eight obtained employment. Between
fiscal year 1989 and fiscal year 1992, VA conducted 9,140 evaluations
under the program, with 937 veterans participating in training.
H.R. 966 would reinstate the program and provide that a new program
period would run for five years beginning on the date of enactment of
the Act. In addition, it would require the Secretary to ensure that the
availability of vocational training under section 1524 be made known
through a variety of means, including the Internet and announcements in
VA publications and other veterans' publications. Finally, the bill
would require the Secretary, within two years after the date of
enactment of the Act, to report to the Committees on Veterans' Affairs
of the Senate and House on the operation of the program to include an
evaluation of the vocational training provided and an analysis of the
cost-effectiveness of the training provided, as well as data on the
entered-employment rate of veterans pursuing such training.
If H.R. 966 were to be enacted, we estimate that VA would conduct
approximately 1,300 record reviews each year, based on new accessions
to the pension rolls, to determine whether each veteran so evaluated
has good potential for achieving employment. We estimate that the
achievement of a vocational goal will be determined to be feasible in
about \1/3\ (433) of those cases. Of that number, it is estimated that
approximately \1/3\ of these, 144 veterans, will actually end up
participating in the program. In addition, because the program is also
available to veterans over age 45 on a voluntary basis, we estimate
that an additional 25 participants may participate, for a total of 169
cases per year. Based on those numbers, VA estimates that the enactment
of H.R. 966 would cost $3 million for fiscal years 2004 through 2008
and an additional $3.6 million for fiscal years 2009 though 2013,
totaling $6.6 million.
Mr. Chairman, given our experience in administering the temporary
program during its ten-year duration, and the fact that only a small
number of veterans benefited from the program, VA believes that the
finite resources available to us for program administration would be
best used to support our current program of vocational rehabilitation
for service-disabled veterans, as authorized under chapter 31 of title
38, United States Code. Thus, the Department does not support the
enactment of H.R. 966.
Mr. Chairman, this concludes my statement. I will be pleased to
respond to any questions you or the members of the Subcommittee may
have.
__________
Statement of Robert J. Epley, Associate Deputy Under Secretary for
Policy and Program Management, Veterans Benefits Administration,
Department of Veterans Affairs, Before the House Committee on Veterans'
Affairs, Subcommittee on Benefits, June 11, 2003
Mr. Chairman and Members of the Subcommittee, thank you for the
opportunity to testify today on several legislative items of interest
to veterans. Accompanying me today is John H. Thompson, Deputy General
Counsel.
* * * * * * *
h.r. 1167
H.R. 1167 would allow a veteran's surviving spouse who marries a
non-veteran after the veteran's death to be eligible for burial in a VA
national cemetery based on his or her marriage to the veteran. This
proposal is similar to a VA proposal sent to Congress on April 25,
2003.Over the last several years, the National Cemetery Administration
has seen an increase in the number of requests for burial of a
veteran's widow or widower who married a non-veteran after the veteran
died. These cases usually involve spouses of veterans who were married
for many years and raised a family with the veteran. Typically, the
veteran's children and grandchildren, and often the current spouse,
support the burial of the decedent with the original veteran-spouse in
a VA national cemetery. However, current law does not permit it if the
remarriage remained in effect when the veteran's survivor predeceased
the new spouse.
Public Law 103-446 revised eligibility criteria for burial in a
national cemetery to reinstate burial eligibility for a surviving
spouse of an eligible veteran whose subsequent remarriage to a non-
veteran was terminated by death or dissolved by divorce. The current
proposal would be consistent with that amendment in further
acknowledging the importance of that marriage to the veteran's family.
This proposal would allow the deceased veteran to be buried with a
spouse with whom he or she always expected to be buried. It would also
allow the veteran's children to visit a single gravesite to pay their
respects to their parents.
We estimate that the cost associated with this proposal would be
minimal. The average number of requests for burials for individuals
previously married to an eligible veteran who subsequently married a
non-veteran is estimated to be 200 per year; the majority of these
burials would be second interments. The cost of a second interment
(including a headstone or marker) in a VA national cemetery averages
approximately $550. For FY 2004, we anticipate the mandatory cost of
the proposal to be $20,000 for the provision of headstones or markers
and the discretionary costs to be $90,000 for operational activities.
Our ten-year estimate (FY 2004-2013) is $200,000 in mandatory costs and
$900,000 in discretionary costs.This bill makes the eligibility for
burial of remarried surviving spouses of veterans retroactive to
January 1, 2000. We estimate that the costs associated with the
retroactivity of this bill would be negligible. While it is difficult
to determine how many families of already deceased, and presumably
interred, remarried surviving spouses of veterans would want to
disinter their loved one and then re-inter them with the veteran in a
national cemetery, we do not believe this number would be significant.
* * * * * * *
h.r. 2164
H.R. 2164 would amend 38 U.S.C. Sec. 3512, effective September 1,
2001, to provide that individuals who qualify for benefits under
chapter 35 (survivors' and dependents' educational assistance) and are
involuntarily ordered to full-time National Guard duty under 32 U.S.C.
Sec. 502(f) after September 11, 2001, would have their individual
delimiting dates extended by an amount of time equal to that period of
active duty plus 4 months. Public Law 107-103 restored entitlement to
National Guard personnel who qualified for chapter 35 benefits who had
to discontinue course pursuit as a result of being called to active
duty under specific sections of title 10, United States Code. This bill
would provide the same delimiting date extension to National Guard
members who are activated under title 32. The proposal is nearly
identical to a VA proposal transmitted to Congress on April 25, 2003.
Thus, VA strongly supports the bill.
We estimate the cost associated with the enactment of H.R. 2164
would be $150,000 for FY 2004 and approximately $5 million in mandatory
funding for the ten-year period from FY 2004 through FY 2013.
h.r. 2285
H.R. 2285 would amend title 38, United States Code, to require the
Secretary of Labor to provide staffing at military installations
overseas to carry out Transition Assistance Program (TAP) counseling
within 90 days after the date of enactment of the Act. While VA
strongly supports initiatives that would further enhance TAP, we
respectfully defer to the views of the Department of Labor regarding
the merits of this bill.
h.r. 2297
H.R. 2297 would amend title 38, United States Code, to expand MGIB
benefits to certain self-employment training, to extend the Veterans'
Advisory Committee on Education until 2009, to repeal the VA education
loan program, to provide permanent authority for state cemetery grants,
to provide for forfeiture of VA benefits for certain subversive
activities, and to extend VA's authority to maintain a regional office
in the Philippines through 2005. H.R. 2297 incorporates with some
changes certain provisions of VA draft bills sent to Congress on April
25, 2003, and May 12, 2003.
Section 1 of the bill would expand the Montgomery GI Bill (chapter
30) program by authorizing educational assistance benefits for veterans
under that program for on-job training in certain self-employment
training programs. Such training might, for example, include that
necessary for operation of a franchise. The Veterans Entrepreneurship
and Small Business Development Act of 1999 (Pub. L. No. 106-50)
requires that all Federal agencies aggressively support self employment
for veterans and service-disabled veterans, directly and through public
or private partnerships. This amendment would provide veterans
considering self employment with improved access to capital for
training. Thus, more veterans would be encouraged to initiate steps
toward self employment. The proposal is nearly identical to a VA
proposal transmitted to Congress on April 25, 2003. Accordingly, we
strongly support its enactment.
We estimate the costs associated with the enactment of this section
would be $357,000 for FY 2004 and approximately $3.9 million in
mandatory funding for the 10-year period from FY 2004 through FY 2013.
Section 2 of the bill would extend to the year 2009 the Veterans'
Advisory Committee on Education and amend pertinent law requiring the
inclusion of veterans from World War II, the Korean Conflict era and
the post-Korean conflict era as members of the Committee. The Committee
is useful in keeping the Secretary in touch with the education
community as well as the veterans' service organizations. During the
last several years, the Committee has made a number of recommendations
that have, in turn, become legislative proposals. The Committee's
discussions and recommendations are an invaluable aid to our efforts in
administering VA's education programs. The proposal is nearly identical
to a VA proposal transmitted to Congress on April 25, 2003; however, we
favor extending the authority for the Committee until 2013.
We estimate the costs associated with the extension of the
Committee would be $25,400 for FY 2004 and $200,000 in discretionary
funding for the 10-year period from FY 2004 through FY 2013.
Section 3 of the bill would repeal the VA education loan program
and waive any existing repayment obligations, to include overpayments
due to default on such loans. The program, in effect since January 1,
1975, currently is available to issue loans up to a maximum of $2,500
per academic year to spouses and surviving spouses of veterans who are
past their delimiting dates with remaining entitlement to chapter 35
benefits. The population for this program is very limited, and, with
other options in the public and private sectors, there is no longer a
demand for these loans. In fact, VA has not issued a loan under this
program in several years, but the Government has paid an estimated
$70,000 a year to administer it. VA's October 2002 monthly loans
statistics show 20 current education loans in the amount of $14,987.08
and 116 defaulted education loans totaling $105,908.10. As is apparent,
it costs VA more to administer the loan program than to forgive the
debts currently outstanding. VA recommended the repeal of this program
in a letter to Congress on April 25th of this year.
We estimate the cost associated with the repeal of the education
loan program to be approximately $121,000 in FY 2004 in mandatory
funding.
Section 4 of the bill would amend 38 U.S.C. Sec. 2408(a)(2) to
permanently authorize appropriations for VA to make grants to states to
assist them in establishing, expanding, or improving state veterans'
cemeteries. Section 2408(a)(2) currently authorizes appropriations for
making these grants through fiscal year 2004.
VA's State Cemetery Grants Program is an important component in
meeting the burial needs of our Nation's veterans. State veterans'
cemeteries supplement VA's national cemetery system in providing burial
options to veterans throughout the Nation. VA's State Cemetery Grants
Program has already helped to fund 51 operational state veterans'
cemeteries, and six more are under construction. VA has received over
30 additional pre-applications from states requesting grants. There is
a tremendous, on-going demand for grants to improve or expand existing
state veterans' cemeteries, and permanently authorizing appropriations
would assist long-term planning for this important program.
Appropriations for VA's State Home Grants Program (authorized by
subchapter III of chapter 81, title 38, United States Code) are
permanently authorized under 38 U.S.C. Sec. 8133(a). The amendment made
by section 4 of H.R. 2297 would improve the consistency in the
operation of the two programs. We support this proposal.
The costs associated with this proposal would be those included in
VA's annual budget request for use in providing grants to states. The
President's budget submission to Congress for FY 2004 includes a
request for $32 million for the State Cemetery Grants Program.
Section 5 of the bill would amend section 6105 of title 38, United
States Code, to supplement the list of offenses conviction of which
would result in a bar to all gratuitous VA benefits. Section 6105
provides that an individual convicted after September 1, 1959, of any
of several specified offenses involving subversive activities shall
have no right to gratuitous benefits, including national cemetery
burial, under laws administered by the Secretary of Veterans Affairs,
and that no other person shall be entitled to such benefits on account
of such individual. Congress' primary concern in enacting this
provision was to prevent VA benefits from being provided based on
military service of persons found guilty of offenses involving national
security. This proposal would amend section 6105 to supplement the list
of offenses conviction of which would result in a bar to all gratuitous
VA benefits to include additional offenses that have come into being
since enactment of section 6105.
This proposal would extend the current prohibition on payments of
gratuitous benefits to persons convicted of subversive activities to
include six additional classes of activities. The following offenses
from title 18, United States Code, would be added: sections 175
(Prohibitions with respect to biological weapons); 229 (Prohibited
activities with respect to chemical weapons); 831 (Prohibited
transactions involving nuclear materials); 1091 (Genocide); 2332a (Use
of certain weapons of mass destruction); and 2332b (Acts of terrorism
transcending national boundaries). All of these offenses, which involve
serious threats to national security, were added to title 18, United
States Code, after the enactment of section 6105. We support this
proposal.
There is no cost associated with this proposal. Cost savings would
be insignificant.
Section 6 of the bill would extend until December 31, 2005, the
authority of the Secretary of Veterans Affairs under 38 U.S.C.
Sec. 315(b) to operate a regional office in the Republic of the
Philippines. Under current law, that authority will expire on December
31, 2003. Congress has periodically extended this authority, most
recently in Public Law 106-117.
Were VA to close the Manila regional office, veterans' assistance
activities would still be needed in the Philippines. A Federal Benefits
Unit would have to be attached to the Department of State. Under such
an arrangement, VA's control of costs and quality of service would be
limited. Because a Federal Benefits Unit would assume responsibility
only for disseminating information and assistance, but not processing
benefits, there could be no assurance that the extensive fraud-
prevention activities currently performed by the Manila regional office
would continue.
We support extension of the Secretary's authority to operate a
regional office in the Philippines. However, we recommend that this
authority be extended through December 31, 2008.
An extension of the Secretary's authority to operate a regional
office in the Philippines is included in the President's FY 2004
Budget.
We note that, while legislation under consideration at this hearing
reflects several proposals recommended by VA in draft legislation
submitted to Congress on April 25, 2003, and May 12, 2003, a number of
other provisions of our draft bills of importance to VA and veterans
were not included. In particular, our Allen-case legislation, forwarded
to the Congress in April, if enacted, would put an end to a state of
the law we consider unconscionable and an affront to most veterans. The
same program that so fittingly compensates veterans for their service-
related disabilities should not be a source of payments to veterans
because they are substance abusers. Congress established the
appropriate policy when it provided in 1990 that ``no compensation
shall be paid if [a] disability is a result of [a] veteran's own . . .
abuse of alcohol or drugs.'' VA is a recognized leader in the treatment
of substance disorders, and that is an altogether appropriate role for
the Government to assume. But paying veterans for the disabling effects
of their own alcohol or drug abuse obviously can be a disincentive to
their treatment and recovery. As currently interpreted by the courts,
the law in this regard reflects a public policy inconsistent with VA's
mission. We urge your prompt enactment of our legislation.
In addition, we urge the Committee to review our draft legislative
proposals dealing with alternative beneficiaries for Government life
insurance, time limitations for submission of claim information,
expansion of the burial plot allowance, provision of Government markers
for privately marked graves, and expansion of benefits for Filipino
veterans residing in the United States and incorporate these worthy
initiatives into pending legislation.
Congressional Budget Office Cost Estimate
The following letter was received from the Congressional
Budget Office concerning the cost of the reported bill:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 14, 2003
Hon. Christopher H. Smith
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2297, the Veterans
Benefits Act of 2003.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sarah T.
Jennings, who can be reached at 226-2840.
Sincerely,
Douglas Holtz-Eakin,
Director
Enclosure.
Congressional Budget Office Cost Estimate
H.R. 2297, Veterans Benefits Act of 2003
As ordered reported by the House Committee on Veterans' Affairs on June
26, 2003
Summary
H.R. 2297 would affect several veterans programs, including
housing, compensation, pensions, burial, and education. The
bill also would affect retirement programs for the military and
the other uniformed services. CBO estimates that enacting this
legislation would reduce direct spending for veterans programs
and for uniformed services' retirement benefits by $63 million
in 2004, about $135 million over the 2004-2008 period, and
about $300 million over the 2004-2013 period. In addition, CBO
estimates that implementing H.R. 2297 would cost $4 million in
2004 and $137 million over the 2004-2008 period, assuming
appropriation of the necessary amounts.
H.R. 2297 contains no intergovernmental or private-sector
mandates as defined by the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the federal government
The estimated budgetary impact of H.R. 2297 is shown in
Table 1. This estimate assumes that the legislation will be
enacted by October 1, 2003. The costs of this legislation fall
within budget functions 700 (veterans benefits and services),
600 (income security), 300 (natural resources and environment),
400 (transportation), and 550 (health).
TABLE 1. ESTIMATED BUDGETARY IMPACT OF H.R. 2297
By Fiscal Year, in Millions of Dollars
--------------------------------------------
2004 2005 2006 2007 2008
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority......................................... -\63 -\15 -\18 -\20 -\21
Estimated Outlays.................................................. -\63 -\15 -\18 -\20 -\21
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level...................................... 37 39 40 41 41
Estimated Outlays.................................................. 4 21 31 39 40
----------------------------------------------------------------------------------------------------------------
a Five-year costs in the text differ slightly from a summation of the annual costs listed here because of
rounding.
Basis of estimate
Direct Spending--Summary
H.R. 2297 would affect direct spending in veterans'
programs for housing, compensation, pension, burial, and
veterans' readjustment benefits. The bill would also affect
direct spending for annuities for the survivors of uniformed
services' retirees. Table 2 summarizes those effects, and the
individual provisions that would affect direct spending are
described below. In total, CBO estimates that enacting this
legislation would decrease direct spending for veterans'
programs and uniformed services retirement benefits by $63
million in 2004, about $135 million over the 2004-2008 period,
and about $300 million over the 2004-2013 period.
Direct Spending--Housing
Three sections of the bill would affect direct spending on
veterans' housing programs. Together, CBO estimates that
enacting these provisions would lower direct spending by $97
million in 2004, $372 million over the 2004-2008 period, and
$816 million over the 2004-2013 period (see Table 2). (Higher
savings in 2004 result from lower interest rate assumptions for
that year compared to those projected for the 2005-2013
period.) In preparing this estimate, CBO accounted for the
interactive effects between the individual provisions; savings
could be lower if only one or two of these provisions were
enacted. Costs or savings for each individual provision,
estimated as if they were enacted alone, are described below.
TABLE 2. ESTIMATED CHANGES IN DIRECT SPENDING UNDER H.R. 2297
By Fiscal Year, in Millions of Dollars
--------------------------------------------------------------------------------------------------
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
HOUSING a
Spending Under Current Law........................... 452 567 552 535 547 560 572 588 601 917 938
Proposed Changes..................................... 0 -\97 -\65 -\67 -\70 -\73 -\76 -\82 -\85 -\99 -\102
--------------------------------------------------------------------------------------------------
Spending Under H.R. 2297............................. 452 470 487 468 477 487 496 506 516 818 836
COMPENSATION, PENSION, AND BURIAL BENEFITS a
Spending Under Current Law........................... 27,224 29,796 34,353 32,288 29,992 33,121 33,621 34,170 37,661 33,048 36,743
Proposed Changes..................................... 0 27 45 47 48 49 50 51 52 52 53
--------------------------------------------------------------------------------------------------
Spending Under H.R. 2297............................. 27,224 29,823 34,398 32,335 30,040 33,170 33,671 34,221 37,713 33,100 36,796
RETIREMENT BENEFITS
Spending Under Current Law........................... 35,740 36,660 37,649 38,770 39,929 41,072 42,130 43,237 44,323 45,428 46,553
Proposed Changes..................................... 0 1 -\2 -\5 -\5 -\5 -\5 -\5 -\5 -\6 -\6
--------------------------------------------------------------------------------------------------
Spending Under H.R. 2297............................. 35,740 36,661 37,647 38,765 39,924 41,067 42,125 43,232 44,318 45,422 46,547
VETERANS' READJUSTMENT BENEFITS
Spending Under Current Law........................... 2,305 2,575 2,749 2,923 3,100 3,259 3,406 3,543 3,696 3,820 3,947
Proposed Changes..................................... 0 6 7 7 7 8 9 9 9 9 9
--------------------------------------------------------------------------------------------------
Spending Under H.R. 2297............................. 2,305 2,581 2,756 2,930 3,107 3,267 3,415 3,552 3,705 3,829 3,956
Total Proposed Changes............................. 0 -\63 -\15 -\18 -\20 -\21 -\22 -\27 -\29 -\44 -\46
--------------------------------------------------------------------------------------------------------------------------------------------------------
a Five- and 10-year costs in the text differ slightly from a summation of the annual costs shown here because of rounding.
Reinstatement of Vendee Home Loan Program. Section 15 would
reinstate the vendee home loan program which was discontinued
by the Department of Veterans Affairs (VA) on January 31, 2003.
Before that date, when a veteran defaulted on his mortgage and
the home went into foreclosure, VA often acquired the property
and issued a new direct loan when the property was sold. These
loans are called vendee loans. CBO estimates that reinstating
the program would save VA $357 million over the 2004-2013
period, or roughly $35 million a year. The bill also would
require VA to finance between 50 percent and 85 percent of such
sales through the vendee loan program. Before the program was
terminated, VA financed roughly 60 percent of such sales with
vendee financing and CBO estimates that it would continue to do
so under the bill. The estimated savings for this provision is
the net effect of three individual program effects (two with
savings and one with costs), as explained below.
Based on historical data, CBO estimates that under the bill
roughly 14,000 vendee loans would be made each year with an
average loan amount of $98,000. Vendee loans lower the subsidy
cost of the VA home loan program in two ways. First, VA
receives more money for homes sold with vendee financing than
those sold with other financing (16 percent more in 2002).
Since the proceeds from these home sales are considered
recoveries of losses from the guaranteed loans that were
foreclosed, enacting this section would increase recoveries and
therefore lower subsidy costs in the guaranteed loan portfolio.
CBO estimates that VA would save an average of $68 million a
year in guaranteed loan subsidies over the 2004-2013 period.
Second, because vendee loans have lower prepayment and default
rates than other direct loans made by VA, this provision also
would lower subsidy costs for direct loans by an average of $28
million a year over the 2004-2013 period. Finally, before the
program was terminated in 2003, VA sold most vendee loans on
the secondary mortgage market and guaranteed their timely
repayment; CBO estimates that it would continue to do so under
the bill. Based on historical data, CBO estimates that VA would
sell an average of $1.2 billion in vendee loans annually, at a
subsidy cost of roughly $60 million a year.
Changes in Loan Fees. Section 14 would make several
significant changes to the fees charged for the VA home loan
guarantee. First, it would require VA to charge the same fees
for loans to veterans of active-duty and selected-reserve
service; under current law veterans who served in the selected
reserves pay 75 basis points more than veterans with active-
duty service. Second, starting in 2004, the bill would increase
the fee charged for loans made with no downpayment by 15 basis
points. Third, the provision would increase the fee charged for
repeated use of the home loan benefit (when a veteran uses the
benefit more than once) by 30 basis points for the 2004-2011
period and by 90 basis points in 2012 and 2013. Finally, it
would replace the existing range of fees for hybrid adjustable
rate mortgages with a flat fee of 1.25 percent. CBO estimates
that revising fees in the manner specified above would reduce
direct spending by $29 million in 2004 and $492 million over
the 2004-2013 period.
Home Loans for Reservists. Section 13 would permanently
extend the home loan benefits guaranteed by VA to members of
the selected reserve. Under current law, reservists are
eligible for home loans guaranteed by VA through 2009. CBO
estimates that under the bill, VA would guarantee 9,000
additional loans a year over the 2010-2013 period, with an
average loan amount of $153,000. CBO further estimates that the
subsidy cost associated with these additional loans would total
$10 million over the 2010-2013 period.
Direct Spending--Compensation, Pensions, and Burial Benefits
Several sections of the bill would affect spending for
veterans' disability compensation, pensions, and burial
benefits (see Table 3). Together, those provisions would
increase spending by $27 million in 2004, $218 million over the
2004-2008 period and by $479 million over the 2004-2013 period,
CBO estimates.
TABLE 3. ESTIMATED CHANGES IN DIRECT SPENDING FOR VETERANS' COMPENSATION, PENSIONS, AND BURIAL BENEFITS UNDER H.R. 2297
By Fiscal Year, in Millions of Dollars
Description of Provisions -----------------------------------------------------------------------------------------
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Retention of DIC for Remarried Spouses........................ 23 40 41 42 43 44 46 47 48 49
Disability Benefits for Filipino Veterans..................... 4 4 4 4 4 4 5 5 5 5
Vocational Training for Pensioners............................ 1 1 2 2 2 2 0 0 -\1 -\1
Spina Bifida Benefits......................................... 1 1 1 1 1 1 1 1 1 1
Disability Benefits for Former POWs........................... 1 1 1 1 1 1 1 1 1 1
Burial Benefits for New Philippine Scouts..................... 1 1 1 1 1 1 1 1 1 1
Forfeiture of Benefits for Subversive Activities.............. 1 1 1 1 1 1 1 1 1 1
-----------------------------------------------------------------------------------------
Total Changes in Compensation, Pensions, and Burial Benefits 27 45 47 48 49 50 51 52 52 53
--------------------------------------------------------------------------------------------------------------------------------------------------------
NOTE: DIC = Death and Indemnity Compensation; POWs = Prisoners of War.
1 = Less than $500,000.
Retention of Death and Indemnity Compensation (DIC) for
Remarried Spouses. Under current law, VA provides DIC payments
to the surviving spouse of certain deceased veterans. If a
surviving spouse remarries, DIC payments cease. Should the
subsequent marriage end, either due to divorce or death of the
new spouse, DIC payments can resume. Section 6 would allow a
surviving spouse who remarries after age 55 to continue
receiving DIC payments. The provision would apply
retroactively, allowing surviving spouses who have already
remarried after age 55 to resume receiving DIC payments but
only if they apply for the benefit within one year after this
bill is enacted. CBO estimates that the total cost to provide
DIC payments to surviving spouses who remarry after age 55
would be $23 million in 2004, $189 million over the 2004-2008
period, and $423 million over the 2004-2013 period. Some of
these costs would be offset by direct spending savings in
retirement programs for the uniformed services. Those savings
are discussed in the section titled ``Military Retirement''
below.
In fiscal year 2002, about 300,000 surviving spouses
received DIC payments. CBO estimates that in that year, about
330 surviving spouses over age 55 (or about 0.1 percent of all
surviving spouses receiving DIC) remarried and stopped
receiving DIC payments as a result. CBO projects that, under
current law, the number of remarriages would gradually increase
each year as the overall population of DIC recipients increases
and exceed 400 a year by the end of the decade.
CBO estimated the costs for three groups of surviving
spouses-those over age 55 who would remarry under current law,
those over age 55 who would choose not to remarry under current
law but would remarry if section 6 were enacted, and those who
remarried after age 55 before enactment of this bill.
Surviving Spouses Over Age 55 Who Would Remarry Under
Current Law.--CBO estimates that over the 2004-2013 period,
about 380 surviving spouses over age 55 would remarry each year
on average under current law. Under this bill, federal spending
for DIC would increase because those surviving spouses would
now receive DIC payments that would have stopped under current
law. The average DIC payment in fiscal year 2002 was $12,244.
Such payments are adjusted annually for increases in the cost
of living. After accounting for expected mortality of the
remarried surviving spouses as well as their new spouses, CBO
estimates that the additional cost to provide DIC payments to
surviving spouses over age 55 who would remarry under current
law would be $7 million in 2004, $69 million over the 2004-2008
period, and $227 million over the 2003-2012 period.
Surviving Spouses Over Age 55 Who Would Choose Not to
Remarry Under Current Law.--Under this bill, some surviving
spouses over age 55 might choose to remarry who would not have
done so under current law. CBO estimates there would be no
additional cost to provide DIC payments to those individuals.
Because those surviving spouses would choose to remain
unmarried and receive DIC payments continuously under current
law, providing DIC payments if they remarry would result in no
additional costs to the program.
Surviving Spouses Who Remarried After Age 55 Before
Enactment of the Bill.--Section 6 also would apply
retroactively, allowing surviving spouses who remarried after
age 55 before enactment of this legislation to resume receiving
DIC once this legislation was enacted. The bill would impose a
deadline, however, that would require all those eligible to
apply for resumption this benefit within one year after the
bill's enactment date. After accounting for expected mortality
of the remarried surviving spouses as well as their new
spouses, CBO estimates that about 2,500 surviving spouses who
remarried after age 55 would apply within the time limit and
resume receiving DIC payments. That number represents about 30
percent of the total number of retroactive cases that CBO
estimates would be eligible to reapply for DIC payments. CBO
estimates that the additional cost to provide DIC payments to
this population would be $16 million in 2004, $120 million over
the 2004-2008 period, and $196 million over the 2004-2013
period. Such costs could obviously be much higher or lower,
depending on the portion of eligible people that apply for this
retroactive benefit. (CBO also estimates that implementing this
section would increase spending subject to appropriation by
about less than $100,000 a year over the 2004-2006 period,
assuming appropriation of the estimates amounts. CBO's estimate
of those costs is discussed below under the heading of
``Spending Subject to Appropriation.'')
Disability Benefits for Filipino Veterans. Section 16 would
expand benefits for Filipino veterans who served in the
Philippine Commonwealth Army and the New Philippine Scouts and
their survivors. In sum, CBO estimates that enacting section 16
would cost $4 million in 2004, $20 million over the 2004-2008
period, and $44 million over the 2004-2013 period.
Dependency and Indemnity Compensation.--Under current law,
surviving spouses and dependents of Filipino veterans who
served in the Philippine Commonwealth Army or the New
Philippine Scouts during World War II and live in the United
States are eligible to receive half the amount of the DIC
payment that survivors of veterans of the U.S. armed forces
receive. Section 16 of the bill would require that these
survivors be paid at the full DIC rate.
Based on information provided by VA, CBO estimates that
about 420 survivors of Filipino veterans who served in the
Philippine Commonwealth Army or the New Philippine Scouts
currently receive DIC payments at the 50 percent rate and that
about 120 additional survivors would become eligible for these
payments over the 2004-2013 period. CBO assumes that the
survivors of these Filipino veterans received about half of the
average DIC payment in fiscal year 2002 ($12,244, as noted
above). After adjusting for cost-of-living increases, CBO
estimates that, under the bill, the average DIC payment to
these survivors would be $15,157 for 2004, an increase of
$7,578. After accounting for the expected mortality of these
veterans and their eligible survivors, CBO estimates that
enacting this provision would raise direct spending for DIC by
about $3 million in 2004, $18 million over the 2004-2008
period, and about $40 million over the 2004-2013 period.
Disability Compensation Benefits.--Under current law,
former New Philippine Scouts residing in the United States are
eligible to receive half the amount of disability compensation
currently available to veterans of the U.S. armed forces.
Section 16 would increase disability compensation for these
veterans to the full rate. Based on information provided by VA,
CBO estimates that there are currently about 100 former New
Philippine Scouts residing in the United States today. In
fiscal year 2002, the average disability compensation payment
was $7,334. CBO assumes that eligible former New Philippine
Scouts received about half that amount. After adjusting for
cost-of-living increases, CBO estimates that the average
disability compensation payment to these veterans would total
$8,531 for fiscal year 2004, an increase of $4,265. After
accounting for expected mortality rates, CBO estimates that
enacting this provision would increase direct spending for
veterans' disability compensation by less than $500,000 in
2004, about $2 million over the 2004-2008 period, and about $3
million over the 2004-2013 period.
Vocational Training for Pensioners. Low-income veterans who
served in the armed forces during a period of war and who are
age 65 or older or are determined by VA to be permanently and
totally disabled are eligible for monetary support to bring
their total income up to a level set by the Congress. Under
current law, veterans whose income subsequently exceeds this
level are no longer eligible for this pension or the related
health care benefits. Section 9 would reinstate a pilot program
that offered vocational training and job placement services to
certain pension recipients. That program expired in 1995. Under
that program, trainees who subsequently became employed were
allowed to maintain eligibility for the pension program through
their first year of employment and to receive health care
benefits for three years after that. Payments for education,
training, and other services were made from the pension
account. Section 9 would reinstate this program for five years
from the bill's date of enactment.
The temporary program of Vocational Training For Certain
Pension Recipients operated from February 1, 1985, to December
31, 1995. VA reports that individuals trained under that
program from 1985 through 2000. Based on our analysis of that
program's history, CBO expects about 50 pensioners to begin
training in 2004, increasing to about 250 trainees a year when
the program is fully implemented. The number of trainees would
decline after 2008, when the program would stop taking new
entrants.
The vocational training and job placement services would be
offered under the VA program of Training and Rehabilitation for
Veterans with Service-Connected Disabilities. The average
benefit under this program was about $7,300 in 2002 and CBO
estimates the average benefit will increase to almost $8,100 in
2004. Trainees under the pilot program for pension recipients
would generally be eligible for 24 months of vocational
training, but would not receive the subsistence allowance and
related loans usually available to those in the Training and
Rehabilitation program, nor would they be eligible for
automobile adaptive equipment.
During the earlier pilot program, the average cost for
evaluating and training pension recipients was about 60 percent
of the average training and allowance benefit under the
Training and Rehabilitation Program, and for this estimate, CBO
assumes that will continue to be the case. Thus, CBO estimates
that reinstating the pilot program would result in training
costs for pension recipients of less than $500,000 in 2004, $7
million over the 2004-2008 period and $12 million over the
2004-2013 period.
To the extent that the trainees are successful in obtaining
employment, their pensions would be reduced or eliminated,
thereby reducing pension outlays. Assuming similar rates of
employment to those reported under the previous pilot, CBO
estimates that about 130 pensioners would have their pensions
reduced or eliminated for a savings of $5 million over the
2006-2013 period. In total, the pilot program would increase
pension costs by less than $500,000 in 2004, $7 million over
the 2004-2008 period, and $7 million over the 2004-2013 period.
Spina Bifida Benefits. Exposure to certain herbicides used
by the Department of Defense (DoD) during the Vietnam War from
1962 to 1971 has been associated with a range of diseases from
cancer to birth defects. Under current law, children with spina
bifida who were born to veterans of the Vietnam War are
entitled to monetary allowances, vocational rehabilitation
benefits, and medical benefits administered by VA. Section 12
would expand eligibility for these benefits to children with
spina bifida who were born to veterans who served in the
demilitarized zone (DMZ) in the Republic of Korea between
October 1967 and May 1975.
According to DoD, herbicides were used in the DMZ in Korea
in 1968 and 1969. DoD estimates that up to 78,000 veterans may
have served in the demilitarized zone during that time period,
but that the number of veterans exposed could be much lower.
According to VA, under current law the department provides
benefits to about 1,100 children born to Vietnam veterans out
of a total of about 3.1 million veterans who served within the
borders of Vietnam. In 2002, the costs of benefits provided by
VA to children with spina bifida born to Vietnam veterans
ranged, depending on the severity of the disease, from $2,736
to $16,248 a year per child for disability compensation and, on
average, about $11,300 a year per child for medical benefits.
Based on VA's experience with benefits for children with
spina bifida born to Vietnam veterans, CBO estimates that less
than 30 children with spina bifida born to veterans who served
in the DMZ between October 1967 and May 1975 would begin to
receive benefits under section 12. CBO estimates that the
increase in direct spending resulting from enacting section 12
would be less than $500,000 in 2004, about $2 million over the
2004-2008 period, and about $4 million over the 2004-2013
period. (CBO estimates that implementing this section also
would increase spending subject to appropriation by about $2
million over the 2004-2008 period, assuming appropriation of
the estimated amounts. CBO's estimate of those costs is
discussed below under the heading of ``Spending Subject to
Appropriation.'')
Disability Benefits for Former Prisoners of War (POWs).
Under current law, VA generally deems a disability or disease
to be service-connected for the purposes of disability
compensation based on military medical records and physical
examinations. For former POWs who were held captive for 30 days
or more, current law specifies a list of 15 diseases and
disabilities that VA assumes are service-connected because,
according to VA, military medical records do not cover periods
of captivity and may not provide adequate documentation for
eligibility for disability compensation benefits.
Section 11 would add cirrhosis of the liver to the list of
presumed service-connected disabilities for former POWs who
were held captive for 30 days or more. Based on information
provided by VA, CBO estimates that there are currently about
39,000 living former POWs. Applying prevalence rates for this
disease obtained from the National Institutes of Health and
assuming that between 50 percent and 60 percent of eligible
former POWs would apply, CBO estimates that less than 10 former
POWs would receive compensation under this provision each year.
In 2002, the average disability compensation payment to
veterans with diseases of the liver was about $5,900 for the
year. CBO estimates that adding cirrhosis of the liver to the
list of presumed service-connected disabilities for former POWs
would increase direct spending for veterans' compensation by
less than $100,000 a year over the 2004-2013 period.
VA is in the process of issuing a regulation that would
have the same effect as this provision and expects the
regulation to take effect by the end of fiscal year 2003. If
this regulation were to take effect before H.R. 2297 became
law, this provision would have no cost.
Section 11 also would eliminate the requirement that a POW
be held prisoner for 30 days or more to qualify for presumed
service-connection for five of the 15 presumed service-
connected disabilities included under current law-specifically,
psychosis, any of the anxiety states, dysthymic disorder (or
depressive neurosis), organic residuals of frostbite, and post-
traumatic osteoarthritis. Based on information provided by VA,
CBO estimates that of the 39,000 living former POWs, no more
than 400 were held captive for less than 30 days. About 70
percent, or around 280, of these former POWs are already
receiving disability compensation based on their eligibility as
a veteran. Due to the small number of former POWs who would
become eligible for the new benefit and the fact that many are
already receiving disability compensation, CBO estimates that
the increase in direct spending from eliminating the 30-day
requirement for these five disabilities would be less than
$100,000 a year over the 2004-2013 period.
In sum, CBO estimates that enacting section 11 would cost
less than $100,000 in 2004, less than $500,000 over the 2004-
2008 period, and, at most, $1 million over the 2004-2013
period.
Burial Benefits for New Philippine Scouts. Under current
law, veterans who die of service-connected disabilities are
eligible for a $2,000 burial benefit. Veterans who receive
compensation or pension benefits but die of a nonservice-
connected condition are eligible for a $300 burial and funeral
expenses benefit and another $300 allowance if the veteran is
not interred in a cemetery that is under U.S. government
jurisdiction. Veterans of the New Philippine Scouts are
currently eligible for half of the burial benefit amounts
provided to veterans of the U. S. armed forces. Under section
17, veterans of the New Philippine Scouts would receive burial
and plot allowances at the full rate if they are naturalized
U.S. citizens living in the United States. Based on information
provided by VA, CBO estimates that only a handful of these
veterans would become eligible for the increase in burial
benefits each year. Thus, CBO estimates that enacting section
17 would have no significant effect on direct spending over the
2004-2013 period.
Forfeiture of Benefits for Subversive Activities. Under
current law, a veteran who commits certain criminal acts loses
eligibility for veterans' benefits that he would otherwise be
due. Section 20 would include additional criminal acts that
would cause a veteran to lose eligibility for veterans'
benefits-specifically, criminal acts involving chemical,
biological or nuclear weapons, genocide, and the murder of U.S.
citizens outside of the United States. CBO estimates that any
savings in direct spending that would result from not paying
veterans who commit these crimes would be insignificant.
Direct Spending--Retirement Benefits
Many retirees of the uniformed services have a Survivor
Benefit Plan (SBP) premium payment deducted from their
retirement annuity. The SBP was established in Public Law 92-
425 to create an opportunity for military retirees to provide
annuities for their survivors. Under current law, survivors of
disabled veterans who are retired from the military, the Coast
Guard, Public Health Service, or the National Oceanic and
Atmospheric Administration cannot receive both full SBP and DIC
from VA. Because of this prohibition on concurrent receipt of
these benefits, such survivors forgo a portion of their SBP
annuity equal to the nontaxable DIC benefit. These survivors
also receive a refund in premiums for the portion of the SBP
annuity they chose to forgo to receive the nontaxable DIC
benefit. If a survivor loses eligibility for DIC payments, he
or she has the option to repay the refunded premiums to once
again receive their full SBP annuity.
Section 6 would allow surviving spouses who remarry after
age 55 to continue receiving DIC payments that they would
otherwise be ineligible for (see ``Retention of DIC for
Remarried Spouses'' above). Surviving spouses who would gain
eligibility for DIC under section 6 and who would as a result
be eligible for both SBP and DIC would forgo that portion of
their SBP annuity equal to the nontaxable DIC benefit. Thus,
the enactment of section 6 would result in a savings in SBP
payments for surviving spouses who under current law receive
the full amount of their SBP payments.
In comparison to current law, the full amount of these
savings would be reduced because of changes in the amount of
premium refunds and repayments. For the survivors whose
remarriage occurred prior to enactment of this bill, these
savings would be partially offset by the refunding of the
premium payments for the portion of SBP that these survivors
would forgo to receive DIC. CBO expects that their refund
payments would occur in either 2004 or 2005, depending on how
soon VA restarts their DIC benefit.
Survivors who remarry after enactment of this legislation
would continue receiving the same DIC and SBP payments as
before their remarriage. If they remarry under current law,
these survivors would become ineligible for DIC and would have
to buy back their full SBP eligibility by repaying that portion
of their premiums that had previously been refunded. Under
section 6, these survivors would not repay the premiums because
they would continue receiving SBP at the reduced rate. Thus, if
section 6 were enacted, total SBP costs would increase by the
amount that these survivors would not repay, and decrease by
the amount of the DIC offset.
Based on information provided by DoD and VA, CBO estimates
that about 500 survivors would receive both DIC and a SBP
annuity each year over the 2004-2013 period and that the
average annual SBP offset would be $9,218 in 2004 which would
increase over the 2005-2013 period for cost-of-living
adjustments. After accounting for changes in SBP premium
refunds and repayments, CBO estimates that enacting section 6
would increase spending for retirement from the uniformed
services by $1 million in 2004, but reduce spending for these
benefits by $16 million over the 2004-2008 period and $43
million over the 2004-2013 period (see table 2).
Direct Spending--Veterans' Readjustment Benefits
H.R. 2297 contains several provisions that would affect
direct spending for education benefits for veterans and their
survivors and dependents, and for other readjustment benefits
(see Table 4). Together, these provisions would increase
spending by $6 million in 2004, $35 million over the 2004-2008
period, and by $80 million over the 2004-2013 period.
TABLE 4. ESTIMATED CHANGES IN DIRECT SPENDING FOR VETERANS' READJUSTMENT BENEFITS UNDER H.R. 2297
By Fiscal Year, in Millions of Dollars
Description of Provisions -----------------------------------------------------------------------------------------
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
Automobile and Adaptive Equipment Grants...................... 4 4 4 4 5 5 5 5 5 5
Adaptive Housing Grants....................................... 1 1 1 1 1 1 1 1 1 1
MGIB for Self-Employment...................................... 1 2 2 2 2 3 3 3 3 3
Extend Chapter 35 for National Guard.......................... 1 1 1 1 1 1 1 1 1 1
Repeal of Education Loan Program.............................. 1 0 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------------
Total Changes in Veterans' Readjustment Benefits............ 6 7 7 7 8 9 9 9 9 9
--------------------------------------------------------------------------------------------------------------------------------------------------------
NOTE: MGIB = Montgomery GI Bill.
1 = Less than $500,000.
Automobile and Adaptive Equipment Grants. Section 10 would
increase a benefit that helps eligible disabled veterans obtain
suitable transportation. CBO estimates enacting this provision
would increase direct spending for automobile grants and
adaptive equipment by about $4 million in 2004, $21 million
over the 2004-2008 period, and $46 million over the 2004-2013
period.
Automobile Grants.--Section 10 would increase, from $9,000
to $11,000, the maximum amount of a grant available to eligible
veterans for the purchase of an automobile or other vehicle.
Veterans are eligible to receive this grant if, as a result of
a service-connected injury or disease, they have lost the use
of one or both hands (or feet), or have a severe vision
impairment.
Based on data provided by VA, CBO estimates that about
1,100 veterans purchased automobiles in 2002 with the help of
VA grants that averaged almost $9,000. Based on our analysis of
the results of previous increases in this grant amount, CBO
estimates that increasing the maximum grant amount to $11,000
would raise the number of grants awarded to about 1,220, an
increase of about 120 grants a year. Thus, CBO estimates that
enacting this provision would increase outlays for automobile
grants by about $3 million in 2004, $16 million over the 2004-
2008 period, and $36 million over the 2004-2013 period.
Adaptive Equipment.--Veterans who receive automobile grants
under the VA program are also entitled to receive the necessary
adaptive equipment to enable them to safely operate their
vehicles, and to have that equipment repaired or replaced as
necessary. Based on current levels of expenditure, we estimate
that providing adaptive equipment for about 120 extra vehicles
a year would increase annual outlays by about $700,000, and
that outlays would increase by close to $1 million a year in
later years as these additional vehicles begin to return for
repair or replacement of equipment. Thus, CBO estimates that
providing and maintaining adaptive equipment for the extra
vehicles purchased as a result of the benefit increase under
section 10 would increase outlays by about $1 million in 2004,
$5 million over the 2004-2008 period, and $10 million over the
2004-2013 period.
Adaptive Housing Grants. VA currently administers two grant
programs to assist severely disabled veterans in acquiring
housing that is adapted to their disabilities, or in modifying
their existing housing. Under current law, veterans who are
classified by VA as totally disabled and who have certain
mobility limitations are entitled to receive housing grants of
up to $48,000. Totally disabled veterans who are blind or have
lost the use of their hands are entitled to receive grants of
up to $9,250. Section 10 also would increase those grants to
maximums of $50,000 and $10,000, respectively.
According to VA, 678 veterans received housing grants
averaging $36,586 in fiscal year 2002. Because the benefit
increase is relatively small, and the criteria to receive these
grants are highly restrictive, CBO expects that enacting
section 10 would not result in a significant increase in the
number of grants that would be awarded each year. CBO estimates
that, under this provision, the grants would average about
$39,000, increasing outlays by about $1 million annually.
Montgomery GI Bill (MGIB) for Self-Employment Training.
Section 2 would allow veterans to use their education
benefits to receive on-the-job training for periods of less
than six months, when that training is needed to obtain a
license to engage in a self-employment occupation or is
required for ownership and operation of a franchise. This
provision would take effect six months after the bill's
enactment. Under current law, these benefits are usually
approved only for those on-the-job training programs that last
a minimum of six months. Based on information from VA, CBO
believes this expansion of education benefits would be used
primarily by those seeking to own and operate a franchise.
Franchise companies typically require prospective owners to
undergo a four-to-six week program of on-the-job training.
Based on information from the Department of Labor (DOL),
CBO estimates that about 6,500 eligible veterans took self-
employment classes through Small Business Development Centers
in 2002, and we assume that about 1,600 of these also completed
five weeks of on-the-job training that is associated with the
purchase of a franchise. Because the population eligible for
and using MGIB is growing, we estimate this number will
increase to about 2,000 by 2013. In 2004, the MGIB benefit will
be $985 a month, or about $1,200 for a five-week period. Under
current law, such payments are annually adjusted for increases
in the cost of living. Thus, CBO estimates that enacting
section 2 would increase direct spending for veterans'
education benefits by about $1 million in 2004, $9 million over
the 2004-2008 period, and $24 million over the 2004-2013
period.
Other Provisions Affecting Spending for Readjustment
Benefits. The following provisions would have an insignificant
budgetary impact on direct spending for readjustment benefits:
LSection 3 would extend the period of eligibility
for survivors and dependents education benefits for those
members of the National Guard who are involuntarily ordered to
full-time National Guard duty under section 502(f) of Title 32
of the United States Code. This expanded eligibility would be
retroactive to September 11, 2001. Based on information from VA
and DoD, CBO estimates that very few National Guard members
would be affected by this change and that the cost would be
less than $500,000 over the 2004-2013 period.
LSection 5 would repeal the Education Loan Program
and forgive any remaining debts owed to the fund. No loans have
been made through this fund in 10 years and the currently
outstanding debt is about $120,000. Forgiving the remaining
debt would constitute a loan modification, which would increase
direct spending by less than $100,000.
Spending Subject to Appropriation
Table 5 shows the estimated effects of H.R. 2297 on
discretionary spending for veterans' programs. CBO estimates
that implementing H.R. 2297 would increase discretionary
spending for veterans benefits by $4 million in 2004 and $137
million over the 2004-2008 period, assuming that the necessary
amounts are appropriated.
State Cemetery Grants. Current law authorizes VA to make
grants to build and improve state veterans' cemeteries through
fiscal year 2004, assuming appropriation of the necessary
amounts. Section 8 would extend this authority indefinitely.
CBO estimates that implementing this section would cost $107
million over the 2005-2008 period, assuming appropriation of
the necessary amounts.
Transition Assistance Program (TAP). Servicemembers who are
preparing to separate from the military are eligible to attend
transition assistance workshops offered by the Department of
Labor at military facilities in the United States and Puerto
Rico. Section 19 would require TAP personnel or contractors to
provide transition assistance, in person, at overseas bases.
DoD projects about 20,000 separations a year at overseas bases.
Based on information from DoD and DOL, CBO expects that, under
section 19, DOL would offer about 600 overseas workshops a year
at an average cost per workshop of about $2,500. CBO estimates
that implementing section 19 would cost $1 million in 2004 and
about $2 million a year thereafter, assuming that the necessary
amounts are appropriated.
Regional Office in Manila, Philippines. Section 18 would
authorize VA to maintain the regional office located in Manila,
Philippines, through December 31, 2009. Under current law, the
authorization for this regional office will expire on December
31, 2003. Based on information provided by VA, CBO estimates
that implementing section 18 would cost $3 million in 2004 and
$19 million over the 2004-2008, assuming appropriation of the
necessary amounts.
Spina Bifida Benefits. Under current law, children with
spina bifida who were born to veterans of the Vietnam War are
entitled to medical benefits administered by the Department of
Veterans Affairs. Section 12 would expand eligibility for these
benefits to children with spina bifida who were born to
veterans who served in the demilitarized zone in the Republic
of Korea between October 1967 and May 1975. Based on VA's
experience with benefits for children with spina bifida born to
Vietnam veterans, CBO estimates that less than 30 children with
spina bifida would begin to receive benefits under section 12.
According to VA, the average annual cost for providing medical
benefits to these children was about $11,300 per child in 2002.
Assuming appropriation of the estimated amounts, CBO estimates
that implementing section 12 would cost less than $500,000 in
2004 and about $2 million over the 2004-2008 period.
TABLE 5. ESTIMATED CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 2297 a
By Fiscal Year, in Millions of Dollars
Description of Provisions --------------------------------------------
2004 2005 2006 2007 2008
----------------------------------------------------------------------------------------------------------------
State Cemetery Grants
Estimated Budget Authority....................................... 33 33 34 35 35
Estimated Outlays................................................ 0 15 25 33 34
Transition Assistance Program
Estimated Budget Authority....................................... 1 2 2 2 2
Estimated Outlays................................................ 1 2 2 2 2
Regional Office in Manila, Philippines
Estimated Budget Authority....................................... 3 4 4 4 4
Estimated Outlays................................................ 3 4 4 4 4
Spina Bifida Benefits
Estimated Budget Authority....................................... 1 1 1 1 1
Estimated Outlays................................................ 1 1 1 1 1
Other Provisions
Estimated Budget Authority....................................... 1 1 1 1 1
Estimated Outlays................................................ 1 1 1 1 1
--------------------------------------------
Total Changes
Estimated Budget Authority..................................... 37 39 40 41 41
Estimated Outlays.............................................. 4 21 31 39 40
----------------------------------------------------------------------------------------------------------------
a. Five-year costs in the text differ slightly from a summation of the annual costs shown here because of
rounding.
1 = Less than $500,000.
Other Provisions. The following provisions would have an
insignificant impact on discretionary spending:
LSection 4 would modify the charter of the
Veterans' Advisory Committee on Education so that the committee
would continue to operate until December 31, 2009. Based on
information from the General Services Administration's Federal
Advisory Committee Database, CBO estimates that implementing
this provision would cost less than $100,000 a year over the
2004-2010 period, assuming appropriation of the necessary
amounts.
LUnder current law, the VA provides DIC payments
to the surviving spouse of certain deceased veterans. If a
surviving spouse remarries, DIC payments cease. Should the
subsequent marriage end, either due to divorce or death of the
new spouse, DIC payments can resume. Section 6 would allow a
surviving spouse who remarries after age 55 to continue
receiving DIC payments. CBO estimates that enacting section 6
would result in about 3,000 cases where a surviving spouses
would apply to reinstate their DIC payments retroactively. CBO
estimates that the costs for VA to process those additional
applications would be less than $100,000 a year over the 2004-
2006 period, assuming appropriation of the necessary amounts.
LUnder current law, surviving spouses of veterans
lose eligibility for burial in a national cemetery if they
remarry. Surviving spouses can only regain eligibility if the
subsequent remarriage ends in death of the subsequent spouse or
divorce. Section 7 would change the eligibility requirements
for surviving spouses so that remarriage would not affect their
eligibility for burial in a national cemetery. This provision
would apply to deaths occurring on or after January 1, 2000.
CBO estimates that the potential increase in costs resulting
from an increased number of burials in national cemeteries
would be insignificant.
LU.S. veterans are eligible for burial in a
national cemetery if they were discharged or separated from
active duty under conditions other than dishonorable. Members
of the armed forces who die on active duty and spouses and
minor children of veterans are also eligible. Section 17 would
extend this eligibility to veterans of the New Philippine
Scouts and their dependents. Based on information provided by
VA, CBO estimates that only a handful of these veterans and
their dependents would request burial in a national cemetery
each year. Thus, CBO estimates that this new eligibility would
not lead to a significant increase in the number of burials in
national cemeteries.
Intergovernmental and private-sector impact
H.R. 2297 contains no intergovernmental or private-sector
mandates as defined in UMRA and would impose no costs on state,
local, or tribal governments.
Previous cbo estimates
On March 28, 2003, CBO transmitted a cost estimate for H.R.
36, a bill to provide that remarriage of the surviving spouse
of a deceased veteran after age 55 shall not result in
termination of DIC otherwise payable to that surviving spouse,
as introduced on January 7, 2003. Section 6 of H.R. 2297 would
provide a one-year limit for VA to accept applications for
reinstated DIC benefits. In contrast, H.R. 36 had no time limit
for application for benefits. CBO's cost estimate for H.R. 36
did not account for savings in military retirement programs
that would occur as a result of both bills. These differences
are reflected in the cost estimates for H.R. 36 and H.R. 2297.
On April 3, 2003, CBO transmitted a cost estimate for H.R.
533, the Agent Orange Veterans' Children's Benefits Act of
2003, as introduced on February 5, 2003. Section 12 of H.R.
2297 is similar to H.R. 533; however, CBO could not provide a
specific estimate of costs for H.R. 533 because we were
uncertain how VA would implement the bill. Because section 12
is more specific regarding the expanded eligibility for
benefits for children with spina bifida, CBO has provided an
estimate of those costs for H.R. 2297.
On May 19, 2003, CBO transmitted a cost estimate for H.R.
1460, the Veterans Entrepreneurship and Benefits Improvement
Act of 2003, as ordered reported by the House Committee on
Veterans' Affairs on May 15, 2003. Section 15 of H.R. 2297 is
similar to section 5 of H.R. 1460, as are the estimated
savings.
On May 19, 2003, CBO transmitted a cost estimate for H.R.
1257, the Selected Reserve Home Loan Equity Act, as ordered
reported by the House Committee on Veterans' Affairs on May 15,
2003. Sections 13 and 14 of H.R. 2297 are similar to H.R. 1257,
and the estimates of savings are also similar. Section 14 of
H.R. 2297 would make further changes to loan fees, which would
yield greater savings than estimated for H.R. 1257.On May 23,
2003, CBO transmitted a cost estimate for H.R. 1838, a bill to
revise the presumptions of service-connection relating to
diseases and disabilities of former prisoners of war, as
introduced on April 29, 2003. Section 11 of the bill is
identical to H.R. 1838, as are the two estimates.
Estimate prepared by:
Federal Costs:
Housing: Sunita D'Monte (226-2840)
Compensation: Melissa E. Zimmerman and Dwayne M.
Wright (226-2840)
Retirement Benefits: Sarah T. Jennings and Melissa E.
Zimmerman (226-2840)
Readjustment Benefits: Sarah T. Jennings (226-2840)
Impact on State, Local, and Tribal Governments:
Melissa Merrell (225-3220)
Impact on the Private Sector: Frances Lussier (226-
2900)
Estimate approved by:
Peter H. Fontaine
Statement of Federal Mandates
The preceding Congressional Budget Office cost estimate
states the bill contains no intergovernmental or private sector
mandates as defined in the Unfunded Mandates Reform Act.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, the reported bill is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART I--GENERAL PROVISIONS
CHAPTER Sec.
General........................................................101
* * * * * * *
PART II--GENERAL BENEFITS
Compensation for Service-Connected Disability or Death........1101
* * * * * * *
Benefits for Children of Vietnam Veterans....................1802]
Disability Benefits for Children of Vietnam Veterans and Other 18.
1801 Veterans Exposed to Herbicide Agents............................
* * * * * * *
PART I--GENERAL PROVISIONS
* * * * * * *
CHAPTER 1--GENERAL
* * * * * * *
Sec. 103. Special provisions relating to marriages
(a) * * *
* * * * * * *
(d)(1) * * *
(2)(A) * * *
(B) The remarriage after age 55 of the surviving spouse of a
veteran shall not bar the furnishing of benefits under section
1311 or 1781 of this title to such person as the surviving
spouse of the veteran.
* * * * * * *
Sec. 107. Certain service deemed not to be active service
(a) * * *
(b) Service in the Philippine Scouts under section 14 of the
Armed Forces Voluntary Recruitment Act of 1945 shall not be
deemed to have been active military, naval, or air service for
the purposes of any of the laws administered by the Secretary
except--
(1) * * *
(2) chapters 11 [and], 13 (except section 1312(a)),
23, and 24 (to the extent provided for in section
2402(8)) of this title.
[Payments] Except as provided in subsection (c) or (d),
payments under such chapters shall be made at a rate of $0.50
for each dollar authorized, and where annual income is a factor
in entitlement to benefits, the dollar limitations in the law
specifying such annual income shall apply at a rate of $0.50
for each dollar.
(c) In the case of benefits under subchapters II and IV of
chapter 11 of this title and subchapter II of chapter 13
(except section 1312(a)) of this title paid by reason of
service described in subsection (a) or (b) to an individual
residing in the United States who is a citizen of, or an alien
lawfully admitted for permanent residence in, the United
States, the second sentence [of subsection (a)] of the
applicable subsection shall not apply.
(d)(1) With respect to benefits under chapter 23 of this
title, in the case of an individual described in paragraph (2),
the second sentence of subsection (a) or (b), as otherwise
applicable, shall not apply.
(2) Paragraph (1) applies to any individual whose service is
described in subsection (a) and who dies after November 1,
2000, or whose service is described in subsection (b) and who
dies after the date of the enactment of the Veterans Benefits
Act of 2003, if the individual, on the individual's date of
death--
(A) * * *
* * * * * * *
CHAPTER 3--DEPARTMENT OF VETERANS AFFAIRS
* * * * * * *
Sec. 315. Regional offices
(a) * * *
(b) The Secretary may maintain a regional office in the
Republic of the Philippines until December 31, [2003] 2009.
* * * * * * *
PART II--GENERAL BENEFITS
CHAPTER Sec.
Compensation for Service-Connected Disability or Death........1101
* * * * * * *
Benefits for Children of Vietnam Veterans....................1802]
Disability Benefits for Children of Vietnam Veterans and Other 18.
Veterans Exposed to Herbicide Agents........................1801
* * * * * * *
CHAPTER 11--COMPENSATION FOR SERVICE-CONNECTED DISABILITY OR DEATH
* * * * * * *
SUBCHAPTER II--WARTIME DISABILITY COMPENSATION
* * * * * * *
Sec. 1112. Presumptions relating to certain diseases and disabilities
(a) * * *
[(b) For the purposes of section 1110 of this title and
subject to the provisions of section 1113 of this title, in the
case of a veteran who is a former prisoner of war and who was
detained or interned for not less than thirty days, the disease
of--
[(1) avitaminosis,
[(2) beriberi (including beriberi heart disease),
[(3) chronic dysentery,
[(4) helminthiasis,
[(5) malnutrition (including optic atrophy associated
with malnutrition),
[(6) pellagra,
[(7) any other nutritional deficiency,
[(8) psychosis,
[(9) any of the anxiety states,
[(10) dysthymic disorder (or depressive neurosis),
[(11) organic residuals of frostbite, if the
Secretary determines that the veteran was interned in
climatic conditions consistent with the occurrence of
frostbite,
[(12) post-traumatic osteoarthritis,
[(13) peripheral neuropathy except where directly
related to infectious causes,
[(14) irritable bowel syndrome, or
[(15) peptic ulcer disease,
which became manifest to a degree of 10 percent or more after
active military, naval, or air service shall be considered to
have been incurred in or aggravated by such service,
notwithstanding that there is no record of such disease during
the period of service.]
(b)(1) For the purposes of section 1110 of this title and
subject to the provisions of section 1113 of this title, in the
case of a veteran who is a former prisoner of war--
(A) a disease specified in paragraph (2) shall be
considered to have been incurred in or aggravated by
such service, notwithstanding that there is no record
of such disease during the period of service; and
(B) if the veteran was detained or interned as a
prisoner of war for not less than thirty days, a
disease specified in paragraph (3) which became
manifest to a degree of 10 percent or more after active
military, naval, or air service shall be considered to
have been incurred in or aggravated by such service,
notwithstanding that there is no record of such disease
during the period of service.
(2) The diseases specified in this paragraph are the
following:
(A) Psychosis.
(B) Any of the anxiety states.
(C) Dysthymic disorder (or depressive neurosis).
(D) Organic residuals of frostbite, if the Secretary
determines that the veteran was interned in climatic
conditions consistent with the occurrence of frostbite.
(E) Post-traumatic osteoarthritis.
(3) The diseases specified in this paragraph are the
following:
(A) Avitaminosis.
(B) Beriberi (including beriberi heart disease).
(C) Chronic dysentery.
(D) Helminthiasis.
(E) Malnutrition (including optic atrophy associated
with malnutrition).
(F) Pellagra.
(G) Any other nutritional deficiency.
(H) Cirrhosis of the liver.
(I) Peripheral neuropathy except where directly
related to infectious causes.
(J) Irritable bowel syndrome.
(K) Peptic ulcer disease.
* * * * * * *
CHAPTER 13--DEPENDENCY AND INDEMNITY COMPENSATION FOR SERVICE-CONNECTED
DEATHS
* * * * * * *
SUBCHAPTER III--CERTIFICATIONS
* * * * * * *
Sec. 1322. Certifications with respect to social security entitlement
(a) Determinations required by section 1312(a) of this title
(other than a determination required by section 1312(a)(2) of
this title) as to whether any survivor described in section
1312(a)(3) of this title of a deceased individual would be
entitled to benefits under section 202 of the Social Security
Act (42 U.S.C. 402) for any month and as to the amount of the
benefits which would be paid for such month, if the deceased
veteran had been a fully and currently insured individual at
the time of such veteran's death, shall be made by the
[Secretary of Health and Human Services, and shall be certified
by such Secretary to the Secretary of Veterans Affairs upon
request of the Secretary of Veterans Affairs.] Commissioner of
Social Security, and shall be certified by the Commissioner to
the Secretary upon request of the Secretary.
(b) The Secretary shall pay to the [Secretary of Health and
Human Services] Commissioner of Social Security an amount equal
to the costs which will be incurred in making determinations
and certifications under subsection (a). Such payments shall be
made with respect to the costs incurred during such period (but
not shorter than a calendar quarter) as [the two Secretaries]
the Secretary and the Commissioner may prescribe, with the
amount of such payments to be made on the basis of estimates
made by the [Secretary of Health and Human Services]
Commissioner after consultation with the Secretary. The amount
payable for any period shall be increased or reduced to
compensate for any underpayment or overpayment, as the case may
be, of the costs incurred in any preceding period.
* * * * * * *
CHAPTER 15--PENSION FOR NON-SERVICE-CONNECTED DISABILITY OR DEATH OR
FOR SERVICE
* * * * * * *
SUBCHAPTER II--VETERANS' PENSIONS
* * * * * * *
non-service-connected disability pension
* * * * * * *
Sec. 1524. Vocational training for certain pension recipients
(a)(1) In the case of a veteran under age 45 who is awarded a
pension during the program period, the Secretary shall, based
on information on file with the Department [of Veterans
Affairs], make a preliminary finding whether such veteran, with
the assistance of a vocational training program under this
section, has a good potential for achieving employment. If such
potential is found to exist, the Secretary shall solicit from
the veteran an application for vocational training under this
section. If the veteran thereafter applies for such training,
the Secretary shall provide the veteran with an evaluation,
which may include a personal interview, to determine whether
the achievement of a vocational goal is reasonably feasible.
(2) If a veteran who is 45 years of age or older and is
awarded pension during the program period, or a veteran who was
awarded pension before the beginning of the program period,
applies for vocational training under this section and the
Secretary makes a preliminary finding on the basis of
information in the application that, with the assistance of a
vocational training program under subsection (b) [of this
section], the veteran has a good potential for achieving
employment, the Secretary shall provide the veteran with an
evaluation in order to determine whether the achievement of a
vocational goal by the veteran is reasonably feasible. Any such
evaluation shall include a personal interview by a Department
employee trained in vocational counseling.
(3) For the purposes of this section, the term ``program
period'' means [the period beginning on February 1, 1985, and
ending on December 31, 1995] the five-year period beginning on
the date of the enactment of the Veterans Benefits Act of 2003.
(b)(1) If the Secretary, based upon an evaluation under
subsection (a) [of this section], determines that the
achievement of a vocational goal by a veteran is reasonably
feasible, the veteran shall be offered and may elect to pursue
a vocational training program under this subsection. If the
veteran elects to pursue such a program, the program shall be
designed in consultation with the veteran in order to meet the
veteran's individual needs and shall be set forth in an
individualized written plan of vocational rehabilitation of the
kind described in section 3107 of this title.
* * * * * * *
(4) A veteran may not begin pursuit of a vocational training
program under this subsection after the later of (A) [December
31, 1995] the end of the program period, or (B) the end of a
reasonable period of time, as determined by the Secretary,
following either the evaluation of the veteran under subsection
(a) [of this section] or the award of pension to the veteran as
described in subsection (a)(2) [of this section]. Any
determination by the Secretary of such a reasonable period of
time shall be made pursuant to regulations which the Secretary
shall prescribe.
(c) In the case of a veteran who has been determined to have
a permanent and total non-service-connected disability and who,
not later than one year after the date the veteran's
eligibility for counseling under subsection (b)(3) [of this
section] expires, secures employment within the scope of a
vocational goal identified in the veteran's individualized
written plan of vocational rehabilitation (or in a related
field which requires reasonably developed skills and the use of
some or all of the training or services furnished the veteran
under such plan), the evaluation of the veteran as having a
permanent and total disability may not be terminated by reason
of the veteran's capacity to engage in such employment until
the veteran first maintains such employment for a period of not
less than 12 consecutive months.
(d) A veteran who pursues a vocational training program under
subsection (b) [of this section] shall have the benefit of the
provisions of subsection (a) of section 1525 of this title
beginning at such time as the veteran's entitlement to pension
is terminated by reason of income from work or training (as
defined in subsection (b)(1) of that section) without regard to
the date on which the veteran's entitlement to pension is
terminated.
(e) Payments by the Secretary for education, training, and
other services and assistance under subsection (b) [of this
section] (other than the services of Department employees)
shall be made from the Department appropriations account from
which payments for pension are made.
(f) The Secretary shall ensure that the availability of
vocational training under this section is made known through a
variety of means, including the Internet and announcements in
Department publications and other veterans' publications.
(g) Not later than two years after the date of the enactment
of the Veterans Benefits Act of 2003, and each year thereafter,
the Secretary shall submit to the Committees on Veterans'
Affairs of the Senate and House of Representatives a report on
the operation of this section. The report shall set forth an
evaluation of the vocational training provided under this
section for the period involved, and shall include an analysis
of the cost-effectiveness of the vocational training provided
under this section as well as data on the entered-employment
rate of veterans pursuing such vocational training.
* * * * * * *
[CHAPTER 18--BENEFITS FOR CHILDREN OF VIETNAM VETERANS
[SUBCHAPTER I--CHILDREN OF VIETNAM VETERANS BORN WITH SPINA BIFIDA]
CHAPTER 18--DISABILITY BENEFITS FOR CHILDREN OF VIETNAM VETERANS AND
OTHER VETERANS EXPOSED TO HERBICIDE AGENTS
SUBCHAPTER I--CHILDREN BORN WITH SPINA BIFIDA
Sec.
1801. Persons eligible for benefits.
1802. Spina bifida conditions covered.
* * * * * * *
[SUBCHAPTER I--CHILDREN OF VIETNAM VETERANS BORN WITH SPINA BIFIDA]
SUBCHAPTER I--CHILDREN BORN WITH SPINA BIFIDA
Sec. 1801. Persons eligible for benefits
An individual is an eligible child for purposes of this
subchapter if the individual is suffering from spina bifida and
is--
(1) a child as defined in section 1821(1) of this
title; or
(2) the natural child, regardless of age or marital
status, of a parent who during the period beginning on
October 1 1967, and ending on May 7 1975, performed
active military, naval, or air service in the Republic
of Korea in the area between the south line of the
Demilitarized Zone and a line five miles south of the
Civilian Control Line established with respect to the
Demilitarized Zone, but only if the individual was
conceived after the parent performed such service.
* * * * * * *
Sec. 1803. Health care
(a) In accordance with regulations which the Secretary shall
prescribe, the Secretary shall provide [a child of a Vietnam
veteran who is suffering from spina bifida] an eligible child
with such health care as the Secretary determines is needed by
the child for the spina bifida or any disability that is
associated with such condition.
* * * * * * *
Sec. 1804. Vocational training and rehabilitation
(a) Pursuant to such regulations as the Secretary may
prescribe, the Secretary may provide vocational training under
this section to [a child of a Vietnam veteran who is suffering
from spina bifida] an eligible child if the Secretary
determines that the achievement of a vocational goal by such
child is reasonably feasible.
* * * * * * *
Sec. 1805. Monetary allowance
(a) The Secretary shall pay a monthly allowance under this
chapter to [any child of a Vietnam veteran] any eligible child
for any disability resulting from spina bifida suffered by such
child.
* * * * * * *
CHAPTER 21--SPECIALLY ADAPTED HOUSING FOR DISABLED VETERANS
* * * * * * *
Sec. 2102. Limitations on assistance furnished
(a) The assistance authorized by section 2101(a) of this
title shall be limited in the case of any veteran to one
housing unit, and necessary land therefor, and shall be
afforded under one of the following plans, at the option of the
veteran but shall not exceed [$48,000] $50,000 in any one
case--
(1) * * *
* * * * * * *
(b) Except as provided in section 2104(b) of this title, the
assistance authorized by section 2101(b) of this title shall be
limited to the lesser of--
(1) * * *
(2) [$9,250] $10,000.
* * * * * * *
CHAPTER 24--NATIONAL CEMETERIES AND MEMORIALS
* * * * * * *
Sec. 2402. Persons eligible for interment in national cemeteries
Under such regulations as the Secretary may prescribe and
subject to the provisions of section 6105 of this title, the
remains of the following persons may be buried in any open
national cemetery under the control of the National Cemetery
Administration:
(1) * * *
* * * * * * *
(5) The spouse, surviving spouse [(which for purposes
of this chapter includes an unremarried surviving
spouse who had a subsequent remarriage which was
terminated by death or divorce)] (which for purposes of
this chapter includes a surviving spouse who had a
subsequent remarriage), minor child (which for purposes
of this chapter includes a child under 21 years of age,
or under 23 years of age if pursuing a course of
instruction at an approved educational institution),
and, in the discretion of the Secretary, unmarried
adult child of any of the persons listed in paragraphs
(1) through (4) and paragraph (7).
* * * * * * *
(8) Any individual whose service is described in
[section 107(a)] subsection (a) or (b) of section 107
of this title if such individual at the time of death--
(A) * * *
* * * * * * *
Sec. 2408. Aid to States for establishment, expansion, and improvement
of veterans' cemeteries
(a)(1) * * *
(2) There is authorized to be appropriated such sums as may
be necessary [for fiscal year 1999 and for each succeeding
fiscal year through fiscal year 2004] for the purpose of making
grants under paragraph (1). Funds appropriated under the
preceding sentence shall remain available until expended.
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 34--VETERANS' EDUCATIONAL ASSISTANCE
* * * * * * *
SUBCHAPTER I--PURPOSE; DEFINITIONS
* * * * * * *
Sec. 3452. Definitions
For the purposes of this chapter and chapter 36 of this
title--
(a) * * *
* * * * * * *
(e) The term ``training establishment'' [means any
establishment providing apprentice or other training on the
job, including those under the supervision of a college or
university or any State department of education, or any State
apprenticeship agency, or any State board of vocational
education, or any joint apprenticeship committee, or the Bureau
of Apprenticeship and Training established pursuant to the Act
of August 16, 1937, popularly known as the ``National
Apprenticeship Act'' (29 U.S.C. 50 et seq.), or any agency of
the Federal Government authorized to supervise such training.]
means any of the following:
(1) An establishment providing apprentice or other
training on the job, including those under the
supervision of a college or university or any State
department of education.
(2) An establishment providing self-employment on-job
training consisting of full-time training for a period
of less than six months that is needed or accepted for
purposes of obtaining licensure to engage in a self-
employment occupation or required for ownership and
operation of a franchise that is the objective of the
training.
(3) A State board of vocational education.
(4) A Federal or State apprenticeship registration
agency.
(5) A joint apprenticeship committee established
pursuant to the Act of August 16, 1937, popularly known
as the ``National Apprenticeship Act'' (29 U.S.C. 50 et
seq.).
(6) An agency of the Federal Government authorized to
supervise such training.
* * * * * * *
SUBCHAPTER II--ELIGIBILITY AND ENTITLEMENT
* * * * * * *
Sec. 3462. Time limitations for completing a program of education
Delimiting Period for Completion
(a)(1) * * *
[(2)(A) Notwithstanding the provisions of paragraph (1) of
this subsection, any veteran shall be permitted to use any of
such veteran's unused entitlement under section 3461 of this
title for the purposes of eligibility for an education loan,
pursuant to the provisions of subchapter III of chapter 36 of
this title, after the delimiting date otherwise applicable to
such veteran under such paragraph (1), if such veteran was
pursuing an approved program of education on a full-time basis
at the time of the expiration of such veteran's eligibility.
[(B) Notwithstanding any other provision of this chapter or
chapter 36 of this title, any veteran whose delimiting period
is extended under subparagraph (A) of this paragraph may
continue to use any unused loan entitlement under this
paragraph as long as the veteran continues to be enrolled on a
full-time basis in pursuit of the approved program of education
in which such veteran was enrolled at the time of expiration of
such veteran's eligibility (i) until such entitlement is
exhausted, (ii) until the expiration of two years after
November 23, 1977, or the date of the expiration of the
delimiting date otherwise applicable to such veteran under
paragraph (1) of this subsection, whichever is later, or (iii)
until such veteran has completed the approved program of
education in which such veteran was enrolled at the end of the
delimiting period referred to in paragraph (1) of this
subsection, whichever occurs first.]
* * * * * * *
SUBCHAPTER IV--PAYMENTS TO ELIGIBLE VETERANS; VETERAN-STUDENT SERVICES
* * * * * * *
Sec. 3485. Work-study allowance
(a) * * *
* * * * * * *
(e)(1) Subject to paragraph (2) of this subsection, the
Secretary may, notwithstanding any other provision of law,
enter into an agreement with an individual under this section,
or a modification of such an agreement, whereby the individual
agrees to perform services of the kind described in clauses (A)
through (E) of subsection (a)(1) of this section and agrees
that the Secretary shall, in lieu of paying the work-study
allowance payable for such services, as provided in subsection
(a) of this section, deduct the amount of the allowance from
the amount which the individual has been determined to be
indebted to the United States by virtue of such individual's
participation in a benefits program under this chapter, chapter
30, 31, 32, 35, or 36 [(other than an education loan under
subchapter III)] of this title, or chapter 106 of title 10
(other than an indebtedness arising from a refund penalty
imposed under section 2135 of such title).
* * * * * * *
CHAPTER 35--SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE
* * * * * * *
SUBCHAPTER II--ELIGIBILITY AND ENTITLEMENT
* * * * * * *
Sec. 3512. Periods of eligibility
(a) * * *
* * * * * * *
[(f) Any eligible person (as defined in section
3501(a)(1)(B), (C), or (D) of this chapter) shall be entitled
to an additional period of eligibility for an education loan
under subchapter III of chapter 36 of this title beyond the
maximum period provided for in this section pursuant to the
same terms and conditions set forth with respect to an eligible
veteran in section 3462(a)(2) of this title.]
* * * * * * *
(h) Notwithstanding any other provision of this section, if
an eligible person, during the delimiting period otherwise
applicable to such person under this section, serves on active
duty pursuant to an order to active duty issued under section
688, 12301(a), 12301(d), 12301(g), 12302, or 12304 of title 10,
or is involuntarily ordered to full-time National Guard duty
under section 502(f) of title 32, such person shall be granted
an extension of such delimiting period for the length of time
equal to the period of such active duty plus four months.
* * * * * * *
CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS
subchapter i--state approving agencies
Sec.
3670. Scope of approval.
* * * * * * *
[subchapter iii--education loans
[3698. Eligibility for loans; amount and conditions of loans;
interest rate on loans.
[3699. Revolving fund; insurance.]
* * * * * * *
SUBCHAPTER II--MISCELLANEOUS PROVISIONS
* * * * * * *
Sec. 3692. Advisory committee
(a) There shall be a Veterans' Advisory Committee on
Education formed by the Secretary which shall be composed of
persons who are eminent in their respective fields of
education, labor, and management and of representatives of
institutions and establishments furnishing education to
eligible veterans or persons enrolled under chapter 30, 32, or
35 of this title and chapter [106] 1606 of title 10. The
committee shall also include veterans representative of [World
War II, the Korean conflict era, the post-Korean conflict era,]
the Vietnam era, the post-Vietnam era, and the Persian Gulf
War. The Assistant Secretary of Education for Postsecondary
Education (or such other comparable official of the Department
of Education as the Secretary of Education may designate) and
the Assistant Secretary of Labor for Veterans' Employment and
Training shall be ex officio members of the advisory committee.
(b) The Secretary shall consult with and seek the advice of
the committee from time to time with respect to the
administration of this chapter, chapter 30, 32, and 35 of this
title, and chapter [106] 1606 of title 10. The committee may
make such reports and recommendations as it considers desirable
to the Secretary and the Congress.
(c) The committee shall remain in existence until December
31, [2003] 2009.
* * * * * * *
[SUBCHAPTER III--EDUCATION LOANS
[Sec. 3698. Eligibility for loans; amount and conditions of loans;
interest rate on loans
[(a)(1) Subject to paragraph (2) of this subsection, each
eligible veteran shall be entitled to a loan under this
subchapter (if the program of education is pursued in a State)
in an amount determined under, and subject to the conditions
specified in, subsection (b)(1) of this section if the veteran
satisfies the requirements set forth in subsection (c) of this
section and the criteria established under subsection (g) of
this section.
[(2) Except in the case of a veteran to whom section
3462(a)(2) of this title is applicable, no loan may be made
under this subchapter after September 30, 1981.
[(b)(1) Subject to paragraph (3) of this subsection, the
amount of the loan to which an eligible veteran shall be
entitled under this subchapter for any academic year shall be
equal to the amount needed by such veteran to pursue a program
of education at the institution at which the veteran is
enrolled, as determined under paragraph (2) of this subsection.
[(2)(A) The amount needed by a veteran to pursue a program of
education at an institution for any academic year shall be
determined by subtracting (i) the total amount of financial
resources (as defined in subparagraph (B) of this paragraph)
available to the veteran which may be reasonably expected to be
expended by such veteran for educational purposes in any year
from (ii) the actual cost of attendance (as defined in
subparagraph (C) of this paragraph) at the institution in which
such veteran is enrolled.
[(B) The term ``total amount of financial resources'' of any
veteran for any year means the total of the following:
[(i) The annual adjusted effective income of the
veteran less Federal income tax paid or payable by such
veteran with respect to such income.
[(ii) The amount of cash assets of the veteran.
[(iii) The amount of financial assistance received by
the veteran under the provisions of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
[(iv) Educational assistance received by the veteran
under this title other than under this subchapter.
[(v) Financial assistance received by the veteran
under any scholarship or grant program other than those
specified in clauses (iii) and (iv).
[(C) The term ``actual cost of attendance'' means, subject to
such regulations as the Secretary may provide, the actual per-
student charges for tuition, fees, room and board (or expenses
related to reasonable commuting), books, and an allowance for
such other expenses as the Secretary determines by regulation
to be reasonably related to attendance at the institution at
which the veteran is enrolled.
[(3) The aggregate of the amounts any veteran may borrow
under this subchapter may not exceed $376 multiplied by the
number of months such veteran is entitled to receive
educational assistance under section 3461 of this title, but
not in excess of $2,500 in any one regular academic year.
[(c) An eligible veteran shall be entitled to a loan under
this subchapter if such veteran--
[(1) is in attendance at an educational institution
on at least a half-time basis and (A) is enrolled in a
course leading to a standard college degree, or (B) is
enrolled in a course, the completion of which requires
six months or longer, leading to an identified and
predetermined professional or vocational objective,
except that the Secretary may waive the requirements of
subclause (B) of this clause, in whole or in part, if
the Secretary determines, pursuant to regulations which
the Secretary shall prescribe, it to be in the interest
of the eligible veteran and the Federal Government;
[(2) enters into an agreement with the Secretary
meeting the requirements of subsection (d) of this
section; and
[(3) satisfies any criteria established under
subsection (g) of this section.
No loan shall be made under this subchapter to an eligible
veteran pursuing a program of correspondence, or apprenticeship
or other on-job training.
[(d) Any agreement between the Secretary and a veteran under
this subchapter--
[(1) shall include a note or other written obligation
which provides for repayment to the Secretary of the
principal amount of, and payment of interest on, the
loan in installments (A) over a period beginning nine
months after the date on which the borrower ceases to
be at least a half-time student and ending ten years
and nine months after such date, or (B) over such
shorter period as the Secretary may have prescribed
under subsection (g) of this section;
[(2) shall include provision for acceleration of
repayment of all or any part of the loan, without
penalty, at the option of the borrower;
[(3) shall provide that the loan shall bear interest,
on the unpaid balance of the loan, at a rate prescribed
by the Secretary, at the time the loan is contracted
for which rate shall be comparable to the rate of
interest charged students at such time on loans insured
by the Secretary of Education under part B of title IV
of the Higher Education Act of 1965, but in no event
shall the rate so prescribed by the Secretary exceed
the rate charged students on such insured loans, and
shall provide that no interest shall accrue prior to
the beginning date of repayment; and
[(4) shall provide that the loan shall be made
without security and without endorsement.
[(e)(1) Except as provided in paragraph (2) of this
subsection, whenever the Secretary determines that a default
has occurred on any loan made under this subchapter, the
Secretary shall declare an overpayment, and such overpayment
shall be recovered from the veteran concerned in the same
manner as any other debt due the United States.
[(2) If a veteran who has received a loan under this section
dies or becomes permanently and totally disabled, then the
Secretary shall discharge the veteran's liability on such loan
by repaying the amount owed on such loan.
[(f) Payment of a loan made under this section shall be drawn
in favor of the eligible veteran and mailed promptly to the
educational institution in which such veteran is enrolled. Such
institution shall deliver such payment to the eligible veteran
as soon as practicable after receipt thereof. Upon delivery of
such payment to the eligible veteran, such educational
institution shall promptly submit to the Secretary a
certification, on such form as the Secretary shall prescribe,
of such delivery, and such delivery shall be deemed to be an
advance payment under section 3680(d)(4) of this title for
purposes of section 3684(b) of this title.
[(g)(1) The Secretary shall conduct, on a continuing basis, a
review of the default experience with respect to loans made
under this section.
[(2)(A) To ensure that loans are made under this section on
the basis of financial need directly related to the costs of
education, the Secretary may, by regulation, establish (i)
criteria for eligibility for such loans, in addition to the
criteria and requirements prescribed by subsections (c) and (d)
of this section, in order to limit eligibility for such loans
to eligible veterans attending educational institutions with
relatively high rates of tuition and fees, and (ii) criteria
under which the Secretary may prescribe a repayment period for
certain types of loans made under this section that is shorter
than the repayment period otherwise applicable under subsection
(d)(1)(A) of this section. Criteria established by the
Secretary under clause (i) of the preceding sentence may
include a minimum amount of tuition and fees that an eligible
veteran may pay in order to be eligible for such a loan (except
that any such criterion shall not apply with respect to a loan
for which the veteran is eligible as a result of an extension
of the period of eligibility of such veteran for loans under
this section provided for by section 3462(a)(2) of this title).
[(B) In prescribing regulations under subparagraph (A) of
this paragraph, the Secretary shall take into consideration
information developed in the course of the review required by
paragraph (1) of this subsection.
[(C) Regulations may be prescribed under subparagraph (A) of
this paragraph only after opportunity has been afforded for
public comment thereon.
[Sec. 3699. Revolving fund; insurance
[(a) There is hereby established in the Treasury of the
United States a revolving fund to be known as the ``Department
of Veterans Affairs Education Loan Fund'' (hereinafter in this
section referred to as the ``Fund'').
[(b) The Fund shall be available to the Secretary, without
fiscal year limitation, for the making of loans under this
subchapter.
[(c) There shall be deposited in the Fund (1) by transfer
from current and future appropriations for readjustment
benefits such amounts as may be necessary to establish and
supplement the Fund in order to meet the requirements of the
Fund, and (2) all collections of fees and principal and
interest (including overpayments declared under section 3698(e)
of this title) on loans made under this subchapter.
[(d) The Secretary shall determine annually whether there has
developed in the Fund a surplus which, in the Secretary's
judgment, is more than necessary to meet the needs of the Fund,
and such surplus, if any, shall be deemed to have been
appropriated for readjustment benefits.
[(e) A fee shall be collected from each veteran or person
obtaining a loan made under this subchapter for the purpose of
insuring against defaults on loans made under this subchapter;
and no loan shall be made under this subchapter until the fee
payable with respect to such loan has been collected and
remitted to the Secretary. The amount of the fee shall be
established from time to time by the Secretary, but shall in no
event exceed 3 percent of the total loan amount. The amount of
the fee may be included in the loan to the veteran or person
and paid from the proceeds thereof.]
* * * * * * *
CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
* * * * * * *
SUBCHAPTER I--GENERAL
* * * * * * *
Sec. 3702. Basic entitlement
(a)(1) * * *
(2) The veterans referred to in the first sentence of
paragraph (1) of this subsection are the following:
(A) * * *
* * * * * * *
(E) [For the period beginning on October 28, 1992,
and ending on September 30, 2009, each] Each veteran
described in section 3701(b)(5) of this title.
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
* * * * * * *
Sec. 3729. Loan fee
(a) * * *
(b) Determination of Fee.--(1) * * *
[(2) The loan fee table referred to in paragraph (1) is as
follows:
[LOAN FEE TABLE
------------------------------------------------------------------------
Active duty Other
Type of loan veteran Reservist obligor
------------------------------------------------------------------------
(A)(i) Initial loan described 2.00 2.75 NA
in section 3710(a) to
purchase or construct a
dwelling with 0-down, or any
other initial loan described
in section 3710(a) other than
with 5-down or 10-down
(closed before October 1,
2011)........................
------------------------------------------------------------------------
(A)(ii) Initial loan described 1.25 2.00 NA
in section 3710(a) to
purchase or construct a
dwelling with 0-down, or any
other initial loan described
in section 3710(a) other than
with 5-down or 10-down
(closed on or after October
1, 2011).....................
------------------------------------------------------------------------
(B)(i) Subsequent loan 3.00 3.00 NA
described in section 3710(a)
to purchase or construct a
dwelling with 0-down, or any
other subsequent loan
described in section 3710(a)
(closed before October 1,
2011)........................
------------------------------------------------------------------------
(B)(ii) Subsequent loan 1.25 2.00 NA
described in section 3710(a)
to purchase or construct a
dwelling with 0-down, or any
other subsequent loan
described in section 3710(a)
(closed on or after October
1, 2011).....................
------------------------------------------------------------------------
(C)(i) Loan described in 1.50 2.25 NA
section 3710(a) to purchase
or construct a dwelling with
5-down (closed before October
1, 2011).....................
------------------------------------------------------------------------
(C)(ii) Loan described in 0.75 1.50 NA
section 3710(a) to purchase
or construct a dwelling with
5-down (closed on or after
October 1, 2011).............
------------------------------------------------------------------------
(D)(i) Initial loan described 1.25 2.00 NA
in section 3710(a) to
purchase or construct a
dwelling with 10-down (closed
before October 1, 2011)......
------------------------------------------------------------------------
(D)(ii) Initial loan described 0.50 1.25 NA
in section 3710(a) to
purchase or construct a
dwelling with 10-down (closed
on or after October 1, 2011).
------------------------------------------------------------------------
(E) Interest rate reduction 0.50 0.50 NA
refinancing loan.............
------------------------------------------------------------------------
(F) Direct loan under section 1.00 1.00 NA
3711.........................
------------------------------------------------------------------------
(G) Manufactured home loan 1.00 1.00 NA
under section 3712 (other
than an interest rate
reduction refinancing loan)..
------------------------------------------------------------------------
(H) Loan to Native American 1.25 1.25 NA
veteran under section 3762
(other than an interest rate
reduction refinancing loan)..
------------------------------------------------------------------------
(I) Loan assumption under 0.50 0.50 0.50
section 3714.................
------------------------------------------------------------------------
(J) Loan under section 3733(a) 2.25 2.25 2.25]
------------------------------------------------------------------------
(2) The loan fee table referred to in paragraph (1) is as
follows:
LOAN FEE TABLE
------------------------------------------------------------------------
Type of loan Veteran Other obligor
------------------------------------------------------------------------
(A)(i) Initial loan described in 2.00 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other initial loan described
in section 3710(a) other than with
5-down or 10-down (closed before
October 1, 2003)...................
------------------------------------------------------------------------
(A)(ii) Initial loan described in 2.15 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other initial loan described
in section 3710(a) other than with
5-down or 10-down (closed on or
after October 1, 2003, and before
October 1, 2011)...................
------------------------------------------------------------------------
(A)(iii) Initial loan described in 1.40 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other initial loan described
in section 3710(a) other than with
5-down or 10-down (closed on or
after October 1, 2011).............
------------------------------------------------------------------------
(B)(i) Subsequent loan described in 3.30 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other subsequent loan
described in section 3710(a)
(closed before October 1, 2011)....
------------------------------------------------------------------------
(B)(ii) Subsequent loan described in 2.15 NA
section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other subsequent loan
described in section 3710(a)
(closed on or after October 1, 2011
and before October 1, 2013)........
------------------------------------------------------------------------
(B)(iii) Subsequent loan described 1.25 NA
in section 3710(a) to purchase or
construct a dwelling with 0-down,
or any other subsequent loan
described in section 3710(a)
(closed on or after October 1,
2013)..............................
------------------------------------------------------------------------
(C)(i) Loan described in section 1.50 NA
3710(a) to purchase or construct a
dwelling with 5-down (closed before
October 1, 2011)...................
------------------------------------------------------------------------
(C)(ii) Loan described in section 0.75 NA
3710(a) to purchase or construct a
dwelling with 5-down (closed on or
after October 1, 2011).............
------------------------------------------------------------------------
(D)(i) Initial loan described in 1.25 NA
section 3710(a) to purchase or
construct a dwelling with 10-down
(closed before October 1, 2011)....
------------------------------------------------------------------------
(D)(ii) Initial loan described in 0.50 NA
section 3710(a) to purchase or
construct a dwelling with 10-down
(closed on or after October 1,
2011)..............................
------------------------------------------------------------------------
(E) Interest rate reduction 0.50 NA
refinancing loan...................
------------------------------------------------------------------------
(F) Direct loan under section 3711.. 1.00 NA
------------------------------------------------------------------------
(G) Manufactured home loan under 1.00 NA
section 3712 (other than an
interest rate reduction refinancing
loan)..............................
------------------------------------------------------------------------
(H) Loan to Native American veteran 1.25 NA
under section 3762 (other than an
interest rate reduction refinancing
loan)..............................
------------------------------------------------------------------------
(I) Loan assumption under section 0.50 0.50
3714...............................
------------------------------------------------------------------------
(J) Loan under section 3733(a)...... 2.25 2.25
------------------------------------------------------------------------
(K) Hybrid loan under section 3707A. 1.25 NA
------------------------------------------------------------------------
* * * * * * *
(4) For the purposes of paragraph (2):
[(A) The term ``active duty veteran'' means any
veteran eligible for the benefits of this chapter other
than a Reservist.
[(B) The term ``Reservist'' means a veteran described
in section 3701(b)(5)(A) of this title who is eligible
under section 3702(a)(2)(E) of this title.]
(A) The term ``veteran'' means any veteran eligible
for the benefits of this chapter.
[(C)] (B) The term ``other obligor'' means a person
who is not a veteran, as defined in section 101 of this
title or other provision of this chapter.
[(D)] (C) The term ``initial loan'' means a loan to a
veteran guaranteed under section 3710 or made under
section 3711 of this title if the veteran has never
obtained a loan guaranteed under section 3710 or made
under section 3711 of this title.
[(E)] (D) The term ``subsequent loan'' means a loan
to a veteran, other than an interest rate reduction
refinancing loan, guaranteed under section 3710 or made
under section 3711 of this title if the veteran has
previously obtained a loan guaranteed under section
3710 or made under section 3711 of this title.
[(F)] (E) The term ``interest rate reduction
refinancing loan'' means a loan described in section
3710(a)(8), 3710(a)(9)(B)(i), 3710(a)(11),
3712(a)(1)(F), or 3762(h) of this title.
[(G)] (F) The term ``0-down'' means a downpayment, if
any, of less than 5 percent of the total purchase price
or construction cost of the dwelling.
[(H)] (G) The term ``5-down'' means a downpayment of
at least 5 percent or more, but less than 10 percent,
of the total purchase price or construction cost of the
dwelling.
[(I)] (H) The term ``10-down'' means a downpayment of
10 percent or more of the total purchase price or
construction cost of the dwelling.
* * * * * * *
Sec. 3733. Property management
(a)(1) Of the number of purchases made during any fiscal year
of real property acquired by the Secretary as the result of a
default on a loan guaranteed under this chapter for a purpose
described in section 3710(a) of this title, not more than [65]
85 percent, nor less than 50 percent, of such purchases [may]
shall be financed by a loan made by the Secretary. [The maximum
percentage stated in the preceding sentence may be increased to
80 percent for any fiscal year if the Secretary determines that
such an increase is necessary in order to maintain the
effective functioning of the loan guaranty program.]
[(2) After September 30, 1990, the percentage limitations
described in paragraph (1) of this subsection shall have no
effect.]
* * * * * * *
(4)(A) Except as provided in subparagraph (B) [of this
paragraph], the amount of a loan made by the Secretary to
finance the purchase of real property from the Secretary
described in paragraph (1) [of this subsection] may not exceed
an amount equal to 95 percent of the purchase price of such
real property.
(B)(i) The Secretary may waive the provisions of subparagraph
(A) [of this paragraph] in the case of any loan described in
paragraph (5) [of this subsection].
(ii) A loan described in subparagraph (A) [of this paragraph]
may, to the extent the Secretary determines to be necessary in
order to market competitively the property involved, exceed 95
percent of the purchase price.
(5) The Secretary may include, as part of a loan to finance a
purchase of real property from the Secretary described in
paragraph (1) [of this subsection], an amount to be used only
for the purpose of rehabilitating such property. Such amount
may not exceed the amount necessary to rehabilitate the
property to a habitable state, and payments shall be made
available periodically as such rehabilitation is completed.
(6) The Secretary shall make a loan to finance the sale of
real property described in paragraph (1) [of this subsection]
at an interest rate that is lower than the prevailing mortgage
market interest rate in areas where, and to the extent, the
Secretary determines, in light of prevailing conditions in the
real estate market involved, that such lower interest rate is
necessary in order to market the property competitively and is
in the interest of the long-term stability and solvency of the
Veterans Housing Benefit Program Fund established by section
3722(a) of this title.
* * * * * * *
(c)(1) * * *
(2) The Secretary shall include a summary of the information
compiled, and the Secretary's findings, under paragraph (1) [of
this subsection] in the annual report submitted to the Congress
under section 529 of this title. As part of such summary and
findings, the Secretary shall provide a separate analysis of
the factors which contribute to foreclosures of loans which
have been assumed.
* * * * * * *
CHAPTER 39--AUTOMOBILES AND ADAPTIVE EQUIPMENT FOR CERTAIN DISABLED
VETERANS AND MEMBERS OF THE ARMED FORCES
* * * * * * *
Sec. 3902. Assistance for providing automobile and adaptive equipment
(a) The Secretary, under regulations which the Secretary
shall prescribe, shall provide or assist in providing an
automobile or other conveyance to each eligible person by
paying the total purchase price of the automobile or other
conveyance (including all State, local, and other taxes) or
[$9,000] $11,000, whichever is the lesser, to the seller from
whom the eligible person is purchasing under a sales agreement
between the seller and the eligible person.
* * * * * * *
CHAPTER 41--JOB COUNSELING, TRAINING, AND PLACEMENT SERVICE FOR
VETERANS
Sec.
4100. Findings.
* * * * * * *
4113. Outstationing of Transition Assistance Program personnel.
* * * * * * *
Sec. 4102A. Assistant Secretary of Labor for Veterans' Employment and
Training; program functions; Regional
Administrators
(a) * * *
* * * * * * *
(c) Conditions for Receipt of Funds.--(1) The distribution
and use of funds under subsection (b)(5) in order to carry out
sections 4103A(a) and 4104(a) of this title shall be subject to
the continuing supervision and monitoring of the Secretary and
shall not be governed by the provisions of any other law, or
any regulations prescribed thereunder, that are inconsistent
with this section or section 4103A or 4104 of this title.
(2)(A) * * *
(B)(i) * * *
(ii) The Secretary shall phase in over the three fiscal-year
period that begins on October 1, [2002] 2003, the manner in
which amounts are made available to States under subsection
(b)(5) and this subsection[, as amended by the Jobs for
Veterans Act].
* * * * * * *
(f) Establishment of Performance Standards and Outcomes
Measures.--(1) By not later than [6 months after the date of
the enactment of this section,] May 7, 2003, the Assistant
Secretary of Labor for Veterans' Employment and Training shall
establish and implement a comprehensive performance
accountability system to measure the performance of employment
service delivery systems, including disabled veterans' outreach
program specialists and local veterans' employment
representatives providing employment, training, and placement
services under this chapter in a State to provide
accountability of that State to the Secretary for purposes of
subsection (c).
* * * * * * *
Sec. 4113. Outstationing of Transition Assistance Program personnel
(a) Stationing of TAP Personnel at Overseas Military
Installations.--(1) The Secretary--
(A) shall station employees of the Veterans'
Employment and Training Service, or contractors under
subsection (c), at each veterans assistance office
described in paragraph (2); and
(B) may station such employees or contractors at such
other military installations outside the United States
as the Secretary, after consultation with the Secretary
of Defense, determines to be appropriate or desirable
to carry out the purposes of this chapter.
(2) Veterans assistance offices referred to in paragraph
(1)(A) are those offices that are established by the Secretary
of Veterans Affairs on military installations pursuant to the
second sentence of section 7723(a) of this title.
(b) Functions.--Employees (or contractors) stationed at
military installations pursuant to subsection (a) shall
provide, in person, counseling, assistance in identifying
employment and training opportunities, help in obtaining such
employment and training, and other related information and
services to members of the Armed Forces who are being separated
from active duty, and the spouses of such members, under the
Transition Assistance Program and Disabled Transition
Assistance Program established in section 1144 of title 10.
(c) Authority to Contract With Private Entities.--The
Secretary, consistent with such section 1144, may enter into
contracts with public or private entities to provide, in
person, some or all of the counseling, assistance, information
and services under the Transition Assistance Program required
under subsection (a).
* * * * * * *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS
* * * * * * *
CHAPTER 51--CLAIMS, EFFECTIVE DATES, AND PAYMENTS
* * * * * * *
Sec. 5101. Claims and forms
(a) A specific claim in the form prescribed by the Secretary
(or jointly with the [Secretary of Health and Human Services]
Commissioner of Social Security, as prescribed by section 5105
of this title) must be filed in order for benefits to be paid
or furnished to any individual under the laws administered by
the Secretary.
* * * * * * *
CHAPTER 53--SPECIAL PROVISIONS RELATING TO BENEFITS
Sec.
5301. Nonassignability and exempt status of benefits.
* * * * * * *
[5318. Review of Department of Health and Human Services death
information.]
5318. Review of Social Security Administration death information.
* * * * * * *
Sec. 5317. Use of income information from other agencies: notice and
verification
(a) The Secretary shall notify each applicant for a benefit
or service described in subsection (c) of this section that
income information furnished by the applicant to the Secretary
may be compared with information obtained by the Secretary from
the [Secretary of Health and Human Services] Commissioner of
Social Security or the Secretary of the Treasury under section
6103(l)(7)(D)(viii) of the Internal Revenue Code of 1986. The
Secretary shall periodically transmit to recipients of such
benefits and services additional notifications of such matters.
(b) The Secretary may not, by reason of information obtained
from the [Secretary of Health and Human Services] Commissioner
of Social Security or the Secretary of the Treasury under
section 6103(l)(7)(D)(viii) of the Internal Revenue Code of
1986, terminate, deny, suspend, or reduce any benefit or
service described in subsection (c) of this section until the
Secretary takes appropriate steps to verify independently
information relating to the following:
(1) The amount of the asset or income involved.
(2) Whether such individual actually has (or had)
access to such asset or income for the individual's own
use.
(3) The period or periods when the individual
actually had such asset or income.
* * * * * * *
(g) The authority of the Secretary to obtain information from
the Secretary of the Treasury or the [Secretary of Health and
Human Services] Commissioner of Social Security under section
6103(l)(7)(D)(viii) of the Internal Revenue Code of 1986
expires on September 30, 2008.
[Sec. 5318. Review of Department of Health and Human Services death
information]
Sec. 5318. Review of Social Security Administration death information
(a) The Secretary shall periodically compare Department of
Veterans Affairs information regarding persons to or for whom
compensation or pension is being paid with information in the
records of the [Department of Health and Human Services] Social
Security Administration relating to persons who have died for
the purposes of--
(1) * * *
* * * * * * *
(b) The [Department of Health and Human Services] Social
Security Administration death information referred to in
subsection (a) of this section is death information available
to the Secretary from or through the [Secretary of Health and
Human Services] Commissioner of Social Security, including
death information available to the [Secretary of Health and
Human Services] Commissioner from a State, pursuant to a
memorandum of understanding entered into by [such Secretaries]
the Secretary and the Commissioner. Any such memorandum of
understanding shall include safeguards to assure that
information made available under it is not used for
unauthorized purposes or improperly disclosed.
* * * * * * *
CHAPTER 61--PENAL AND FORFEITURE PROVISIONS
* * * * * * *
Sec. 6105. Forfeiture for subversive activities
(a) * * *
(b) The offenses referred to in subsection (a) of this
section are those offenses for which punishment is prescribed
in--
(1) * * *
(2) sections 175, 229, 792, 793, 794, 798, 831, 1091,
2332a, 2332b, 2381, 2382, 2383, 2384, 2385, 2387, 2388,
2389, 2390, and chapter 105 of title 18;
* * * * * * *