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114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-405
======================================================================
AMERICAN HEROES COLA ACT OF 2015
_______
February 1, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Miller of Florida, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 677]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 677) to amend title 38, United States Code, to
provide for annual cost-of-living adjustments to be made
automatically by law each year in the rates of disability
compensation for veterans with service-connected disabilities
and the rates of dependency and indemnity compensation for
survivors of certain service-connected disabled veterans,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 21
Background and Need for Legislation.............................. 21
Hearings......................................................... 36
Subcommittee Consideration....................................... 38
Committee Consideration.......................................... 39
Committee Votes.................................................. 40
Committee Oversight Findings..................................... 41
Statement of General Performance Goals and Objectives............ 41
New Budget Authority, Entitlement Authority, and Tax Expenditures 42
Earmarks and Tax and Tariff Benefits............................. 42
Committee Cost Estimate.......................................... 42
Congressional Budget Office Estimate............................. 42
Federal Mandates Statement....................................... 50
Advisory Committee Statement..................................... 51
Constitutional Authority Statement............................... 51
Applicability to Legislative Branch.............................. 51
Statement on Duplication of Federal Programs..................... 51
Disclosure of Directed Rulemaking................................ 51
Section-by-Section Analysis of the Legislation................... 51
Changes in Existing Law Made by the Bill as Reported............. 59
Amendment
The amendment is 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 ``American Heroes COLA
Act of 2015''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Expansion of eligibility for medallions.
Sec. 3. Definitions relating to claims for benefits under laws
administered by the Secretary of Veterans Affairs.
Sec. 4. Quarterly reports on formal and informal claims for benefits
under laws administered by Secretary of Veterans Affairs.
Sec. 5. Expedited payment of survivor's benefits.
Sec. 6. Priority for processing claims of the Department of Veterans
Affairs.
Sec. 7. Treatment of medical evidence provided by non-Department of
Veterans Affairs medical professionals in support of claims for
disability compensation.
Sec. 8. Automatic annual increase in rates of disability compensation
and dependency and indemnity compensation.
Sec. 9. Improvement of fiduciaries for veterans.
Sec. 10. Board of Veterans' Appeals video hearings.
Sec. 11. Improvements to authority for performance of medical
disabilities examinations by contract physicians.
Sec. 12. Pilot program on fully developed appeals.
Sec. 13. Deadline for certification of appeals forms by regional
offices of the Department of Veterans Affairs.
Sec. 14. Evaluation of backlog of disability claims and appeals of
claims of Department of Veterans Affairs.
Sec. 15. Methods for validating certain World War II Merchant Mariner
service considered to be active service by the Secretary of Veterans
Affairs.
Sec. 16. Designation of American World War II Cities.
Sec. 17. Sense of Congress regarding American veterans disabled for
life.
SEC. 2. EXPANSION OF ELIGIBILITY FOR MEDALLIONS.
Section 2306(d)(4) of title 38, United States Code, is amended to
read as follows:
``(4)(A) In lieu of furnishing a headstone or marker under this
subsection to a deceased individual described in subparagraph (B), the
Secretary may furnish, upon request, a medallion or other device of a
design determined by the Secretary to signify the deceased individual's
status as a veteran, to be attached to a headstone or marker furnished
at private expense.
``(B) A deceased individual described in this subsection is an
individual who--
``(i) served in the Armed Forces on or after April 6, 1917;
and
``(ii) is eligible for a headstone or marker furnished under
paragraph (1) (or would be so eligible but for the date of the
death of the individual).''.
SEC. 3. DEFINITIONS RELATING TO CLAIMS FOR BENEFITS UNDER LAWS
ADMINISTERED BY THE SECRETARY OF VETERANS AFFAIRS.
(a) Definitions.--
(1) In general.--Section 5100 of title 38, United States
Code, is amended to read as follows:
``Sec. 5100. Definitions
``In this chapter:
``(1) The term `claimant' means any individual applying for,
or submitting a claim for, any benefit under the laws
administered by the Secretary.
``(2) The term `claim' means a communication in writing
requesting a determination of entitlement or evidencing a
belief in entitlement to a benefit under the laws administered
by the Secretary.
``(3) The term `formal claim' means a claim submitted on an
application form prescribed by the Secretary.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 51 of such title is further amended by
striking the item relating to section 5100 and inserting the
following new item:
``5100. Definitions.''.
(b) Effective Date.--Section 5100 of title 38, United States Code, as
amended by subsection (a), shall take effect on the date of the
enactment of this Act and shall apply with respect to a claim submitted
on or after such date.
SEC. 4. QUARTERLY REPORTS ON FORMAL AND INFORMAL CLAIMS FOR BENEFITS
UNDER LAWS ADMINISTERED BY SECRETARY OF VETERANS
AFFAIRS.
(a) Quarterly Reports.--During the five-year period beginning on the
date of the enactment of this Act, the Secretary shall submit to the
Committees on Veterans' Affairs of the Senate and House of
Representatives quarterly reports on formal and informal claims
submitted to the Secretary. Each such report shall include, for the
three-month period covered by the report--
(1) the total number of claims submitted to the Secretary;
(2) the total number of informal claims submitted to the
Secretary;
(3) the total number of formal claims submitted to the
Secretary;
(4) the total number of forms indicating an intent to file a
claim for benefits submitted to the Secretary;
(5) the total number of claims notification letters that
included an invitation to the claimant to submit an additional
formal claim that was reasonably raised during the adjudication
of the claim for which the notification letter is sent;
(6) of the claimants who received notification letters
described in paragraph (5), the total number who submitted a
formal claim in response to the invitation included in the
letter;
(7) the total number of electronically filed claims submitted
to the Secretary; and
(8) the total number of fully-developed claims submitted to
the Secretary.
(b) Sense of Congress.--It is the sense of Congress that the
Secretary of Veterans Affairs should develop a designated form for an
increase or reopening of a claim that does not require the resubmittal
of information previously submitted on a formal claim form.
(c) Definitions.--In this section:
(1) The terms ``claim'', ``claimant'', and ``formal claim''
have the meanings given such terms in section 5100 of title 38,
United States Code, as amended by section 4.
(2) The term ``informal claim'' means a communication in
writing requesting a determination of entitlement or evidencing
a belief in entitlement, to a benefit under the laws
administered by the Secretary of Veterans Affairs that--
(A) is submitted in a format other than on an
application form prescribed by the Secretary;
(B) indicates an intent to apply for one or more
benefits under the laws administered by the Secretary;
(C) identifies the benefit sought;
(D) is made or submitted by a claimant, his or her
duly authorized representative, a Member of Congress,
or another person acting on behalf of a claimant who
meets the requirements established by the Secretary for
such purpose; and
(E) may include a report of examination or
hospitalization, if the report relates to a disability
which may establish such an entitlement.
(3) The term ``reasonably raised'' with respect to a claim
means that evidence of an entitlement to a benefit under the
laws administered by the Secretary is inferred or logically
placed at issue upon a sympathetic reading of another claim and
the record developed with respect to that claim.
SEC. 5. EXPEDITED PAYMENT OF SURVIVOR'S BENEFITS.
(a) In General.--Section 5101(a)(1) of title 38, United States Code,
is amended--
(1) by striking ``A specific'' and inserting ``(A) Except as
provided in subparagraph (B), a specific''; and
(2) by adding at the end the following new subparagraph:
``(B)(i) The Secretary may pay benefits under chapters 13 and 15 and
sections 2302, 2307, and 5121 of this title to a survivor of a veteran
who has not filed a formal claim if the Secretary determines that the
record contains sufficient evidence to establish the entitlement of the
survivor to such benefits.
``(ii) For purposes of this subparagraph and section 5110 of this
title, the earlier of the following dates shall be treated as the date
of the receipt of the survivor's application for benefits described in
clause (i):
``(I) The date on which the survivor of a veteran (or the
representative of such a survivor) notifies the Secretary of
the death of the veteran through a death certificate or other
relevant medical evidence indicating that the death was due to
a service-connected or compensable disability.
``(II) The head of any other department or agency of the
Federal Government notifies the Secretary of the death of the
veteran.
``(iii) In notifying the Secretary of the death of a veteran as
described in clause (ii)(I), the survivor (or the representative of
such a survivor) may submit to the Secretary additional documents
relating to such death without being required to file a formal
claim.''.
(b) Report.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, the Secretary of Veterans Affairs
shall submit to the Committee on Veterans' Affairs of the
Senate and the Committee on Veterans' Affairs of the House of
Representatives a report on benefits paid pursuant to covered
claims.
(2) Contents.--The report under paragraph (1) shall include
the following:
(A) The number of covered claims adjudicated during
the one-year period preceding the date of the report,
disaggregated by the following:
(i) Claims in which the claimant claimed
entitlement to compensation on the basis of the
claimant's status as the spouse of a deceased
veteran.
(ii) Claims in which the claimant claimed
entitlement to compensation on the basis of the
claimant's status as the child of a deceased
veteran.
(iii) Claims in which the claimant claimed
entitlement to compensation on the basis of the
claimant's status as the parent of a deceased
veteran.
(B) The number of covered claims that were
adjudicated during such period and for which
compensation was not awarded, disaggregated by clauses
(i) through (iii) of subparagraph (A).
(C) A comparison of the accuracy and timeliness of
covered claims adjudicated during such period with non-
covered claims filed by survivors of a veteran.
(D) The findings of the Secretary with respect to
adjudicating covered claims.
(E) Such recommendations as the Secretary may have
for legislative or administrative action to improve the
adjudication of claims submitted to the Secretary for
benefits under chapters 13 and 15 and sections 2302,
2307, and 5121 of title 38, United States Code.
(3) Covered claim defined.--In this subsection, the term
``covered claim'' means a claim covered by section
5101(a)(1)(B) of title 38, United States Code, as added by
subsection (a).
(c) Effective Date.--The amendments made by subsection (a) shall
apply with respect to claims for benefits based on a death occurring on
or after the date of the enactment of this Act.
SEC. 6. PRIORITY FOR PROCESSING CLAIMS OF THE DEPARTMENT OF VETERANS
AFFAIRS.
(a) In General.--Subchapter I of chapter 51 of title 38, United
States Code, is amended by adding at the end the following new section:
``Sec. 5109C. Priority for processing claims
``(a) Priority.--In processing claims for compensation under this
chapter, the Secretary shall provide the following claimants with
priority over other claimants:
``(1) Veterans who have attained the age of 70.
``(2) Veterans who are terminally ill.
``(3) Veterans with life-threatening illnesses.
``(4) Homeless veterans (as defined in section 2002 of this
title).
``(5) Veterans who were awarded the Medal of Honor.
``(6) Veterans who are former prisoners of war.
``(7) Veterans whose claims are being reviewed again in
relation to a previously denied claim relating to military
sexual trauma.
``(8) Veterans whom the Secretary determines, on a case-by-
case basis, are seriously or very seriously injured.
``(9) Veterans whom the Secretary determines, on a case-by-
case basis, should be given priority under this section based
on an application for good cause established by the Secretary.
``(b) Regulations.--The Secretary shall prescribe regulations to
carry out subsection (a).''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
5109B the following new item:
``5109C. Priority for processing claims.''.
SEC. 7. TREATMENT OF MEDICAL EVIDENCE PROVIDED BY NON-DEPARTMENT OF
VETERANS AFFAIRS MEDICAL PROFESSIONALS IN SUPPORT
OF CLAIMS FOR DISABILITY COMPENSATION.
(a) Acceptance of Reports of Private Physician Examinations.--Section
5125 of title 38, United States Code, is amended--
(1) by striking ``For purposes'' and inserting ``(a) In
General.--For purposes''; and
(2) by adding at the end the following new subsections:
``(b) Sufficiency of Evidence.--If a veteran has submitted a medical
opinion or report of a medical examination administered by a private
physician in support of the veteran's claim, the Secretary may not
order a medical examination to be administered by a Department
physician unless the Secretary provides the veteran with a thorough
explanation of why the medical opinion or report submitted by the
veteran was not sufficiently complete and the reason why additional
medical evidence is necessary.
``(c) Sufficiently Complete Defined.--For purposes of a medical
opinion or report described in subsection (a), the term `sufficiently
complete' means competent, credible, probative, and containing such
information as may be required to make a decision on the claim for
which the medical opinion or report is provided.''.
(b) Effective Date.--The amendment made by subsection (a) shall apply
with respect to medical evidence submitted after the date that is one
year after the date of the enactment of this Act.
SEC. 8. AUTOMATIC ANNUAL INCREASE IN RATES OF DISABILITY COMPENSATION
AND DEPENDENCY AND INDEMNITY COMPENSATION.
(a) Indexing to Social Security Increases.--Section 5312 of title 38,
United States Code, is amended by adding at the end the following new
subsection:
``(d)(1) Whenever there is an increase in benefit amounts payable
under title II of the Social Security Act (42 U.S.C. 401 et seq.) as a
result of a determination made under section 215(i) of such Act (42
U.S.C. 415(i)), the Secretary shall, effective on the date of such
increase in benefit amounts, increase the dollar amounts in effect for
the payment of disability compensation and dependency and indemnity
compensation by the Secretary, as specified in paragraph (2), as such
amounts were in effect immediately before the date of such increase in
benefit amounts payable under title II of the Social Security Act, by
the same percentage as the percentage by which such benefit amounts are
increased.
``(2) The dollar amounts to be increased pursuant to paragraph (1)
are the following:
``(A) Wartime disability compensation.--Each of the dollar
amounts in effect under section 1114 of this title.
``(B) Additional compensation for dependents.--Each of the
dollar amounts in effect under section 1115(1) of this title.
``(C) Clothing allowance.--The dollar amount in effect under
section 1162 of this title.
``(D) Dependency and indemnity compensation to surviving
spouse.--Each of the dollar amounts in effect under subsections
(a) through (d) of section 1311 of such title.
``(E) Dependency and indemnity compensation to children.--
Each of the dollar amounts in effect under sections 1313(a) and
1314 of such title.
``(3) Whenever there is an increase under paragraph (1) in amounts in
effect for the payment of disability compensation and dependency and
indemnity compensation, the Secretary shall publish such amounts, as
increased pursuant to such paragraph, in the Federal Register at the
same time as the material required by section 215(i)(2)(D) of the
Social Security Act (42 U.S.C. 415(i)(2)(D)) is published by reason of
a determination under section 215(i) of such Act (42 U.S.C. 415(i)).
``(4) Each dollar amount increased under paragraph (1), if not a
whole dollar amount, shall be rounded to the next lower whole dollar
amount.
``(5) The Secretary of Veterans Affairs may adjust administratively,
consistent with the increases made under subsection (a), the rates of
disability compensation payable to persons under section 10 of Public
Law 85-857 (72 Stat. 1263) who have not received compensation under
chapter 11 of this title.''.
(b) Effective Date.--Subsection (d) of section 5312 of title 38,
United States Code, as added by subsection (a) of this section, shall
take effect on December 1, 2015.
SEC. 9. IMPROVEMENT OF FIDUCIARIES FOR VETERANS.
(a) Appointment and Supervision.--
(1) Section 5502 of title 38, United States Code, is amended
to read as follows:
``Sec. 5502. Appointment of fiduciaries
``(a) Appointment.--Where it appears to the Secretary that the
interest of the beneficiary would be served thereby, payment of
benefits under any law administered by the Secretary may be made
directly to the beneficiary or to a relative or some other fiduciary
for the use and benefit of the beneficiary, regardless of any legal
disability on the part of the beneficiary.
``(b) Appeals.--(1) If the Secretary determines a beneficiary to be
mentally incompetent for purposes of appointing a fiduciary under this
chapter, the Secretary shall provide such beneficiary with a written
statement detailing the reasons for such determination.
``(2) A beneficiary whom the Secretary has determined to be mentally
incompetent for purposes of appointing a fiduciary under this chapter
may appeal such determination.
``(c) Modification.--(1) A beneficiary for whom the Secretary
appoints a fiduciary under this chapter may, at any time, request the
Secretary to--
``(A) remove the fiduciary so appointed; and
``(B) have a new fiduciary appointed.
``(2) The Secretary shall comply with a request under paragraph (1)
if the Secretary determines that the request is made in good faith
and--
``(A) the fiduciary requested to be removed receives a fee
from the beneficiary and a suitable volunteer fiduciary is
available to assist the beneficiary; or
``(B) the beneficiary provides credible information that the
fiduciary requested to be removed is--
``(i) not acting in the interest of the beneficiary;
or
``(ii) unable to effectively serve the beneficiary
because of an irreconcilable personality conflict or
disagreement.
``(3) The Secretary shall ensure that any removal or new appointment
of a fiduciary under paragraph (1) does not delay or interrupt the
beneficiary's receipt of benefits administered by the Secretary.
``(d) Independence.--A fiduciary appointed by the Secretary shall
operate independently of the Department to determine the actions that
are in the interest of the beneficiary.
``(e) Predesignation.--A veteran may predesignate a fiduciary by--
``(1) submitting written notice to the Secretary of the
predesignated fiduciary; or
``(2) submitting a form provided by the Secretary for such
purpose.
``(f) Appointment of Non-Predesignated Fiduciary.--If a beneficiary
designates an individual to serve as a fiduciary under subsection (e)
and the Secretary appoints an individual not so designated as the
fiduciary for such beneficiary, the Secretary shall notify such
beneficiary of--
``(1) the reason why such designated individual was not
appointed; and
``(2) the ability of the beneficiary to modify the appointed
fiduciary under subsection (c).
``(g) Priority of Appointment.--In appointing a fiduciary under this
chapter, if a beneficiary does not designate a fiduciary pursuant to
subsection (e), to the extent possible the Secretary shall appoint a
person who is--
``(1) a relative of the beneficiary;
``(2) appointed as guardian of the beneficiary by a court of
competent jurisdiction; or
``(3) authorized to act on behalf of the beneficiary under a
durable power of attorney.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 55 of title 38, United States Code, is
amended by striking the item relating to section 5502 and
inserting the following:
``5502. Appointment of fiduciaries.''.
(b) Supervision.--
(1) In general.--Chapter 55 of title 38, United States Code,
is amended by inserting after section 5502, as amended by
subsection (a)(1), the following new section:
``Sec. 5502A. Supervision of fiduciaries
``(a) Commission.--(1)(A) In a case in which the Secretary determines
that a commission is necessary in order to obtain the services of a
fiduciary in the best interests of a beneficiary, the Secretary may
authorize a fiduciary appointed by the Secretary to obtain from the
monthly benefits provided to the beneficiary a reasonable commission
for fiduciary services rendered, but the commission for any month may
not exceed the lesser of the following amounts:
``(i) The amount that equals three percent of the monthly
monetary benefits under laws administered by the Secretary paid
on behalf of the beneficiary to the fiduciary.
``(ii) $35.
``(B) A commission paid under this paragraph may not be derived from
any award to a beneficiary regarding back pay or retroactive benefits
payments.
``(C) A commission may not be authorized for a fiduciary who receives
any other form of remuneration or payment in connection with rendering
fiduciary services for benefits under this title on behalf of the
beneficiary.
``(D) In accordance with section 6106 of this title, a commission may
not be paid to a fiduciary if the Secretary determines that the
fiduciary misused any benefit payments of a beneficiary.
``(E) If the Secretary determines that the fiduciary has misused any
benefit or payments of a beneficiary, the Secretary may revoke the
fiduciary status of the fiduciary.
``(2) Where, in the opinion of the Secretary, any fiduciary receiving
funds on behalf of a Department beneficiary is acting in such a number
of cases as to make it impracticable to conserve properly the estates
or to supervise the persons of the beneficiaries, the Secretary may
refuse to make future payments in such cases as the Secretary may deem
proper.
``(b) Court.--Whenever it appears that any fiduciary, in the opinion
of the Secretary, is not properly executing or has not properly
executed the duties of the trust of such fiduciary or has collected or
paid, or is attempting to collect or pay, fees, commissions, or
allowances that are inequitable or in excess of those allowed by law
for the duties performed or expenses incurred, or has failed to make
such payments as may be necessary for the benefit of the ward or the
dependents of the ward, then the Secretary may appear, by the
Secretary's authorized attorney, in the court which has appointed such
fiduciary, or in any court having original, concurrent, or appellate
jurisdiction over said cause, and make proper presentation of such
matters. The Secretary, in the Secretary's discretion, may suspend
payments to any such fiduciary who shall neglect or refuse, after
reasonable notice, to render an account to the Secretary from time to
time showing the application of such payments for the benefit of such
incompetent or minor beneficiary, or who shall neglect or refuse to
administer the estate according to law. The Secretary may require the
fiduciary, as part of such account, to disclose any additional
financial information concerning the beneficiary (except for
information that is not available to the fiduciary). The Secretary may
appear or intervene by the Secretary's duly authorized attorney in any
court as an interested party in any litigation instituted by the
Secretary or otherwise, directly affecting money paid to such fiduciary
under this section.
``(c) Payment of Certain Expenses.--Authority is hereby granted for
the payment of any court or other expenses incident to any
investigation or court proceeding for the appointment of any fiduciary
or other person for the purpose of payment of benefits payable under
laws administered by the Secretary or the removal of such fiduciary and
appointment of another, and of expenses in connection with the
administration of such benefits by such fiduciaries, or in connection
with any other court proceeding hereby authorized, when such payment is
authorized by the Secretary.
``(d) Temporary Payment of Benefits.--All or any part of any benefits
the payment of which is suspended or withheld under this section may,
in the discretion of the Secretary, be paid temporarily to the person
having custody and control of the incompetent or minor beneficiary, to
be used solely for the benefit of such beneficiary, or, in the case of
an incompetent veteran, may be apportioned to the dependent or
dependents, if any, of such veteran. Any part not so paid and any funds
of a mentally incompetent or insane veteran not paid to the chief
officer of the institution in which such veteran is a patient nor
apportioned to the veteran's dependent or dependents may be ordered
held in the Treasury to the credit of such beneficiary. All funds so
held shall be disbursed under the order and in the discretion of the
Secretary for the benefit of such beneficiary or the beneficiary's
dependents. Any balance remaining in such fund to the credit of any
beneficiary may be paid to the beneficiary if the beneficiary recovers
and is found competent, or if a minor, attains majority, or otherwise
to the beneficiary's fiduciary, or, in the event of the beneficiary's
death, to the beneficiary's personal representative, except as
otherwise provided by law; however, payment will not be made to the
beneficiary's personal representative if, under the law of the
beneficiary's last legal residence, the beneficiary's estate would
escheat to the State. In the event of the death of a mentally
incompetent or insane veteran, all gratuitous benefits under laws
administered by the Secretary deposited before or after August 7, 1959,
in the personal funds of patient's trust fund on account of such
veteran shall not be paid to the personal representative of such
veteran, but shall be paid to the following persons living at the time
of settlement, and in the order named: The surviving spouse, the
children (without regard to age or marital status) in equal parts, and
the dependent parents of such veteran, in equal parts. If any balance
remains, such balance shall be deposited to the credit of the
applicable current appropriation; except that there may be paid only so
much of such balance as may be necessary to reimburse a person (other
than a political subdivision of the United States) who bore the
expenses of last sickness or burial of the veteran for such expenses.
No payment shall be made under the two preceding sentences of this
subsection unless claim therefor is filed with the Secretary within
five years after the death of the veteran, except that, if any person
so entitled under said two sentences is under legal disability at the
time of death of the veteran, such five-year period of limitation shall
run from the termination or removal of the legal disability.
``(e) Escheatment.--Any funds in the hands of a fiduciary appointed
by a State court or the Secretary derived from benefits payable under
laws administered by the Secretary, which under the law of the State
wherein the beneficiary had last legal residence would escheat to the
State, shall escheat to the United States and shall be returned by such
fiduciary, or by the personal representative of the deceased
beneficiary, less legal expenses of any administration necessary to
determine that an escheat is in order, to the Department, and shall be
deposited to the credit of the applicable revolving fund, trust fund,
or appropriation.
``(f) Assistance.--The Secretary shall provide to a fiduciary
appointed under section 5502 of this title materials and tools to
assist the fiduciary in carrying out the responsibilities of the
fiduciary under this chapter, including--
``(1) handbooks, brochures, or other written material that
explain the responsibilities of a fiduciary under this chapter;
``(2) tools located on an Internet website, including forms
to submit to the Secretary required information; and
``(3) assistance provided by telephone.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 55 of title 38, United States Code, is
amended by inserting after the item relating to section 5502
the following new item:
``5502A. Supervision of fiduciaries.''.
(c) Definition of Fiduciary.--Section 5506 of title 38, United States
Code, is amended--
(1) by striking ``For purposes'' and inserting ``(a) For
purposes''; and
(2) by adding at the end the following new subsection:
``(b)(1) For purposes of subsection (a), the term `person' includes
any--
``(A) State or local government agency whose mission is to
carry out income maintenance, social service, or health care-
related activities;
``(B) any State or local government agency with fiduciary
responsibilities; or
``(C) any nonprofit social service agency that the Secretary
determines--
``(i) regularly provides services as a fiduciary
concurrently to five or more individuals; and
``(ii) is not a creditor of any such individual.
``(2) The Secretary shall maintain a list of State or local agencies
and nonprofit social service agencies under paragraph (1) that are
qualified to act as a fiduciary under this chapter. In maintaining such
list, the Secretary may consult the lists maintained under section
807(h) of the Social Security Act (42 U.S.C. 1007(h)).''.
(d) Qualifications.--Section 5507 of title 38, United States Code, is
amended to read as follows:
``Sec. 5507. Inquiry, investigations, and qualification of fiduciaries
``(a) Investigation.--Any certification of a person for payment of
benefits of a beneficiary to that person as such beneficiary's
fiduciary under section 5502 of this title shall be made on the basis
of--
``(1) an inquiry or investigation by the Secretary of the
fitness of that person to serve as fiduciary for that
beneficiary to be conducted in advance of such certification
and in accordance with subsection (b);
``(2) adequate evidence that certification of that person as
fiduciary for that beneficiary is in the interest of such
beneficiary (as determined by the Secretary under regulations);
``(3) adequate evidence that the person to serve as fiduciary
protects the private information of a beneficiary in accordance
with subsection (d)(1); and
``(4) the furnishing of any bond that may be required by the
Secretary in accordance with subsection (f).
``(b) Elements of Investigation.--(1) In conducting an inquiry or
investigation of a proposed fiduciary under subsection (a)(1), the
Secretary shall conduct--
``(A) a face-to-face interview with the proposed fiduciary by
not later than 30 days after the date on which such inquiry or
investigation begins; and
``(B) a background check of the proposed fiduciary to--
``(i) in accordance with paragraph (2), determine
whether the proposed fiduciary has been convicted of a
crime; and
``(ii) determine whether the proposed fiduciary will
serve the best interest of the beneficiary, including
by conducting a credit check of the proposed fiduciary
and checking the records under paragraph (5).
``(2) The Secretary shall request information concerning whether that
person has been convicted of any offense under Federal or State law. If
that person has been convicted of such an offense, the Secretary may
certify the person as a fiduciary only if the Secretary finds that the
person is an appropriate person to act as fiduciary for the beneficiary
concerned under the circumstances.
``(3) The Secretary shall conduct the background check described in
paragraph (1)(B)--
``(A) each time a person is proposed to be a fiduciary,
regardless of whether the person is serving or has served as a
fiduciary; and
``(B) at no expense to the beneficiary.
``(4) Each proposed fiduciary shall disclose to the Secretary the
number of beneficiaries that the fiduciary acts on behalf of.
``(5) The Secretary shall maintain records of any person who has--
``(A) previously served as a fiduciary; and
``(B) had such fiduciary status revoked by the Secretary.
``(6)(A) If a fiduciary appointed by the Secretary is convicted of a
crime described in subparagraph (B), the Secretary shall notify the
beneficiary of such conviction by not later than 14 days after the date
on which the Secretary learns of such conviction.
``(B) A crime described in this subparagraph is a crime--
``(i) for which the fiduciary is convicted while serving as a
fiduciary for any person;
``(ii) that is not included in a report submitted by the
fiduciary under section 5509(a) of this title; and
``(iii) that the Secretary determines could affect the
ability of the fiduciary to act on behalf of the beneficiary.
``(c) Investigation of Certain Persons.--(1) In the case of a
proposed fiduciary described in paragraph (2), the Secretary, in
conducting an inquiry or investigation under subsection (a)(1), may
carry out such inquiry or investigation on an expedited basis that may
include giving priority to conducting such inquiry or investigation.
Any such inquiry or investigation carried out on such an expedited
basis shall be carried out under regulations prescribed for purposes of
this section.
``(2) Paragraph (1) applies with respect to a proposed fiduciary who
is--
``(A) the parent (natural, adopted, or stepparent) of a
beneficiary who is a minor;
``(B) the spouse or parent of an incompetent beneficiary;
``(C) a person who has been appointed a fiduciary of the
beneficiary by a court of competent jurisdiction;
``(D) being appointed to manage an estate where the annual
amount of veterans benefits to be managed by the proposed
fiduciary does not exceed $3,600, as adjusted pursuant to
section 5312 of this title; or
``(E) a person who is authorized to act on behalf of the
beneficiary under a durable power of attorney.
``(d) Protection of Private Information.--(1) A fiduciary shall take
all reasonable precautions to--
``(A) protect the private information of a beneficiary,
including personally identifiable information; and
``(B) securely conducts financial transactions.
``(2) A fiduciary shall notify the Secretary of any action of the
fiduciary that compromises or potentially compromises the private
information of a beneficiary.
``(e) Potential Misuse of Funds.--(1) If the Secretary has reason to
believe that a fiduciary may be misusing all or part of the benefit of
a beneficiary, the Secretary shall--
``(A) conduct a thorough investigation to determine the
veracity of such belief; and
``(B) if such veracity is established, transmit to the
officials described in paragraph (2) a report of such
investigation.
``(2) The officials described in this paragraph are the following:
``(A) The Attorney General.
``(B) Each head of a Federal department or agency that pays
to a fiduciary or other person benefits under any law
administered by such department of agency for the use and
benefit of a minor, incompetent, or other beneficiary.
``(f) Bond.--In determining whether a proposed fiduciary is required
to furnish a bond under subsection (a)(4), the Secretary shall
consider--
``(1) the existence of any familial or other personal
relationship between the proposed fiduciary and the
beneficiary; and
``(2) the care the proposed fiduciary has taken to protect
the interests of the beneficiary.
``(g) List of Fiduciaries.--Each regional office of the Veterans
Benefits Administration shall maintain a list of the following:
``(1) The name and contact information of each fiduciary,
including address, telephone number, and email address.
``(2) With respect to each fiduciary described in paragraph
(1)--
``(A) the date of the most recent background check
and credit check performed by the Secretary under this
section;
``(B) the date that any bond was paid under this
section;
``(C) the name, address, and telephone number of each
beneficiary the fiduciary acts on behalf of; and
``(D) the amount that the fiduciary controls with
respect to each beneficiary described in subparagraph
(C).''.
(e) Annual Receipt of Payments.--
(1) In general.--Section 5509 of title 38, United States
Code, is amended--
(A) in subsection (a)--
(i) by striking ``may require a fiduciary to
file a'' and inserting ``shall require a
fiduciary to file an annual''; and
(ii) by adding at the end the following new
sentence: ``The Secretary shall transmit such
annual report or accounting to the beneficiary
and any legal guardian of such beneficiary.'';
(B) by adding at the end the following new
subsections:
``(c) Matters Included.--Except as provided by subsection (f), an
annual report or accounting under subsection (a) shall include the
following:
``(1) For each beneficiary that a fiduciary acts on behalf
of--
``(A) the amount of the benefits of the beneficiary
provided under any law administered by the Secretary
accrued during the year, the amount spent, and the
amount remaining; and
``(B) if the fiduciary serves the beneficiary with
respect to benefits not administered by the Secretary,
an accounting of all sources of benefits or other
income the fiduciary oversees for the beneficiary.
``(2) A list of events that occurred during the year covered
by the report that could affect the ability of the fiduciary to
act on behalf of the beneficiary, including--
``(A) the fiduciary being convicted of any crime;
``(B) the fiduciary declaring bankruptcy; and
``(C) any judgments entered against the fiduciary.
``(d) Random Audits.--The Secretary shall annually conduct random
audits of fiduciaries who receive a commission pursuant to subsection
5502A(a)(1) of this title.
``(e) Status of Fiduciary.--If a fiduciary includes in the annual
report events described in subsection (c)(2), the Secretary may take
appropriate action to adjust the status of the fiduciary as the
Secretary determines appropriate, including by revoking the fiduciary
status of the fiduciary.
``(f) Caregivers and Certain Other Fiduciaries.--(1)(A) In carrying
out this section, the Secretary shall ensure that a caregiver fiduciary
is required only to file an annual report or accounting under
subsection (a) with respect to the amount of the benefits of the
beneficiary provided under any law administered by the Secretary--
``(i) spent on--
``(I) food and housing for the beneficiary; and
``(II) clothing, health-related expenses, recreation,
and other personal items for the beneficiary; and
``(ii) saved for the beneficiary.
``(B) The Secretary shall coordinate with the Under Secretary for
Benefits and the Under Secretary for Health to--
``(i) minimize the frequency with which employees of the
Department visit the home of a caregiver fiduciary and
beneficiary; and
``(ii) limit the extent of supervision by such Under
Secretaries with respect to such a fiduciary and beneficiary.
``(C) In this paragraph, the term `caregiver fiduciary' means a
fiduciary who--
``(i) in addition to acting as a fiduciary for a beneficiary,
is approved by the Secretary to be a provider of personal care
services for the beneficiary under paragraph (3)(A)(i) of
section 1720G(a) of this title;
``(ii) in carrying out such care services to such
beneficiary, has undergone not less than four home visits under
paragraph (9)(A) of such section; and
``(iii) has not been required by the Secretary to take
corrective action pursuant to paragraph (9)(C) of such section.
``(2) In carrying out this section, the Secretary may adjust the
matters required under an annual report or accounting under subsection
(a) with respect to a fiduciary whom the Secretary determines to have
effectively protected the interests of the beneficiary over a sustained
period.''; and
(C) by striking the section heading and inserting the
following: ``Annual reports and accountings of
fiduciaries''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 55 of title 38, United States Code, is
amended by striking the item relating to section 5509 and
inserting the following new item:
``5509. Annual reports and accountings of fiduciaries.''.
(f) Repayment of Misused Benefits.--Section 6107(a)(2)(C) of title
38, United States Code, is amended by inserting before the period the
following: ``, including by the Secretary not acting in accordance with
section 5507 of this title''.
(g) Annual Reports.--Section 5510 of title 38, United States Code, is
amended by striking ``The Secretary shall include in the Annual
Benefits Report of the Veterans Benefits Administration or the
Secretary's Annual Performance and Accountability Report'' and
inserting ``Not later than July 1 of each year, the Secretary shall
submit to the Committees on Veterans' Affairs of the House of
Representatives and the Senate a separate report containing''.
(h) Report.--Not later than two years after the date of the enactment
of this Act, the Secretary of Veterans Affairs shall submit to the
Committee on Veterans' Affairs of the Senate and the Committee on
Veterans' Affairs of the House of Representatives a comprehensive
report on the implementation of the amendments made by this Act,
including--
(1) detailed information on the establishment of new policies
and procedures pursuant to such amendments and training
provided on such policies and procedures; and
(2) a discussion of whether the Secretary should provide
fiduciaries with standardized financial software to simplify
reporting requirements.
(i) Effective Date.--The amendments made by this section shall take
effect on the date that is one year after the date of the enactment of
this Act.
SEC. 10. BOARD OF VETERANS' APPEALS VIDEO HEARINGS.
Section 7107 of title 38, United States Code, is amended--
(1) in subsection (d), by amending paragraph (1) to read as
follows:
``(1)(A) Upon request for a hearing, the Board shall determine, for
purposes of scheduling the hearing for the earliest possible date,
whether a hearing before the Board will be held at its principal
location or at a facility of the Department or other appropriate
Federal facility located within the area served by a regional office of
the Department. The Board shall also determine whether to provide a
hearing through the use of the facilities and equipment described in
subsection (e)(1) or by the appellant personally appearing before a
Board member or panel.
``(B) The Board shall notify the appellant of the determinations of
the location and type of hearing made under subparagraph (A). Upon
notification, the appellant may request a different location or type of
hearing as described in such subparagraph. If so requested, the Board
shall grant such request and ensure that the hearing is scheduled at
the earliest possible date without any undue delay or other prejudice
to the appellant.''; and
(2) in subsection (e), by amending paragraph (2) to read as
follows:
``(2) Any hearing provided through the use of the facilities and
equipment described in paragraph (1) shall be conducted in the same
manner as, and shall be considered the equivalent of, a personal
hearing.''.
SEC. 11. IMPROVEMENTS TO AUTHORITY FOR PERFORMANCE OF MEDICAL
DISABILITIES EXAMINATIONS BY CONTRACT PHYSICIANS.
(a) Extension of Temporary Authority.--Subsection (c) of section 704
of the Veterans Benefits Act of 2003 (38 U.S.C. 5101 note) is amended
by striking ``December 31, 2015'' and inserting ``December 31, 2017''.
(b) Licensure of Contract Physicians.--
(1) Temporary authority.--Such section 704 is further
amended--
(A) by redesignating subsection (d) as subsection
(e); and
(B) by inserting after subsection (c) the following
new subsection (d):
``(d) Licensure of Contract Physicians.--
``(1) In general.--Notwithstanding any law regarding the
licensure of physicians, a physician described in paragraph (2)
may conduct an examination pursuant to a contract entered into
under subsection (b) at any location in any State, the District
of Columbia, or a Commonwealth, territory, or possession of the
United States, so long as the examination is within the scope
of the authorized duties under such contract.
``(2) Physician described.--A physician described in this
paragraph is a physician who--
``(A) has a current unrestricted license to practice
the health care profession of the physician;
``(B) is not barred from practicing such health care
profession in any State, the District of Columbia, or a
Commonwealth, territory, or possession of the United
States; and
``(C) is performing authorized duties for the
Department of Veterans Affairs pursuant to a contract
entered into under subsection (b).''.
(2) Pilot program.--Section 504 of the Veterans' Benefits
Improvement Act of 1996 (38 U.S.C. 5101 note) is amended--
(A) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively; and
(B) by inserting after subsection (b) the following
new subsection (c):
``(c) Licensure of Contract Physicians.--
``(1) In general.--Notwithstanding any law regarding the
licensure of physicians, a physician described in paragraph (2)
may conduct an examination pursuant to a contract entered into
under subsection (a) at any location in any State, the District
of Columbia, or a Commonwealth, territory, or possession of the
United States, so long as the examination is within the scope
of the authorized duties under such contract.
``(2) Physician described.--A physician described in this
paragraph is a physician who--
``(A) has a current unrestricted license to practice
the health care profession of the physician;
``(B) is not barred from practicing such health care
profession in any State, the District of Columbia, or a
Commonwealth, territory, or possession of the United
States; and
``(C) is performing authorized duties for the
Department of Veterans Affairs pursuant to a contract
entered into under subsection (a).''.
SEC. 12. PILOT PROGRAM ON FULLY DEVELOPED APPEALS.
(a) In General.--The Secretary of Veterans Affairs shall carry out a
pilot program to provide the option of an alternative appeals process
that shall more quickly determine such appeals in accordance with this
section.
(b) Election.--
(1) Filing.--In accordance with paragraph (2), a claimant may
elect to file a fully developed appeal under the pilot program
under subsection (a) by filing with the Secretary the
following:
(A) The notice of disagreement under chapter 71 of
title 38, United States Code, along with the written
election of the claimant to have the appeal determined
under the pilot program.
(B) All evidence that the claimant believes is needed
for the appeal as of the date of the filing.
(C) A statement of the argument in support of the
claim, if any.
(2) Timing.--A claimant shall make an election under
paragraph (1) as part of the notice of disagreement filed by
the claimant in accordance with paragraph (1)(A).
(3) Reversion.--
(A) At any time, a claimant who makes an election
under paragraph (1) may elect to revert to the standard
appeals process. Such a reversion shall be final.
(B) A claimant described in subparagraph (A), or a
claimant who makes an election under paragraph (1) but
is later determined to be ineligible for the pilot
program under subsection (a), shall revert to the
standard appeals process without any penalty to the
claimant other than the loss of the docket number
associated with the fully developed appeal.
(4) Outreach.--In providing claimants with notices of the
determination of a claim during the period in which the pilot
program under subsection (a) is carried out, the Secretary
shall conduct outreach as follows:
(A) The Secretary shall provide to the claimant (and
to the representative of record of the claimant, if
any) information regarding--
(i) the pilot program, including the
advantages and disadvantages of the program;
(ii) how to make an election under paragraph
(1);
(iii) the limitation on the use of new
evidence described in paragraph (3) of
subsection (c) and the development of
information under paragraph (4) of such
subsection; and
(iv) the ability of the claimant to seek
advice and education regarding such process
from veterans service organizations, attorneys,
and claims agents recognized under chapter 59
of title 38, United States Code.
(B) The Secretary shall collaborate, partner with,
and give weight to the advice of the three veterans
service organizations with the most members to publish
on the Internet website of the Department of Veterans
Affairs an online tutorial explaining the advantages
and disadvantages of the pilot program.
(c) Treatment by Department and Board.--
(1) Process.--Upon the election of a claimant to file a fully
developed appeal pursuant to subsection (b)(1), the Secretary
shall--
(A) not provide the claimant with a statement of the
case nor require the claimant to file a substantive
appeal; and
(B) transfer jurisdiction over the fully developed
appeal directly to the Board of Veterans' Appeals.
(2) Docket.--
(A) The Board of Veterans' Appeals shall--
(i) maintain fully developed appeals on a
separate docket than standard appeals;
(ii) decide fully developed appeals in the
order that the fully developed appeals are
received on the fully developed appeal docket;
(iii) except as provided by subparagraph (B),
decide not more than one fully developed appeal
for each four standard appeals decided; and
(iv) to the extent practicable, decide each
fully developed appeal by the date that is one
year following the date on which the claimant
files the notice of disagreement.
(B) Beginning one year after the date on which the
pilot program under subsection (a) commences, the Board
may adjust the number of standard appeals decided for
each fully developed appeal under subparagraph (A)(iii)
if the Board determines that such adjustment is fair
for both standard appeals and fully developed appeals.
(3) Limitation on use of new evidence.--
(A) Except as provided by subparagraphs (B) and (C)--
(i) a claimant may not submit or identify to
the Board of Veterans' Appeals any new evidence
relating to a fully developed appeal after
filing such appeal unless the claimant reverts
to the standard appeals process pursuant to
subsection (b)(3); and
(ii) if a claimant submits or identifies any
such new evidence, such submission or
identification shall be deemed to be an
election to make such a reversion pursuant to
subsection (b)(3).
(B) Subparagraph (A) shall not apply to evidence
developed pursuant to paragraphs (4) and (5). The Board
shall consider such evidence in the first instance
without consideration by the Veterans Benefits
Administration.
(C) The representative of record of a claimant for
appeals purposes, if any, shall be provided an
opportunity to review the fully developed appeal of the
claimant and submit any additional arguments or
evidence that the representative determines necessary
during a period specified by the Board for purposes of
this subparagraph.
(4) Prohibition on remand for additional development.--If the
Board of Veterans' Appeals determines that a fully developed
appeal requires Federal records, independent medical opinions,
or new medical examinations, the Board shall--
(A) in accordance with paragraph (5), take such
actions as may be necessary to develop such records,
opinions, or examinations in accordance with section
5103A of title 38, United States Code;
(B) retain jurisdiction of the fully developed appeal
without requiring a determination by the Veterans
Benefits Administration based on such records,
opinions, or examinations;
(C) ensure the claimant, and the representative of
record of a claimant, if any, receives a copy of such
records, opinions, or examinations; and
(D) provide the claimant a period of 90 days after
the date of mailing such records, opinions, or
examinations during which the claimant may provide the
Board any additional evidence without requiring the
claimant to make a reversion pursuant to subsection
(b)(3).
(5) Development unit.--
(A) The Board of Veterans' Appeals shall establish an
office to develop Federal records, independent medical
opinions, and new medical examinations pursuant to
paragraph (4)(A) that the Board determines necessary to
decide a fully developed appeal.
(B) The Secretary shall--
(i) ensure that the Veterans Benefits
Administration cooperates with the Board of
Veterans' Appeals in carrying out subparagraph
(A); and
(ii) transfer employees of the Veterans
Benefits Administration who, prior to the
enactment of this Act, were responsible for
processing claims remanded by the Board of
Veterans' Appeals to positions within the
office of the Board established under
subparagraph (A) in a number the Secretary
determines sufficient to carry out such
subparagraph.
(6) Hearings.--Notwithstanding section 7107 of title 38,
United States Code, the Secretary may not provide hearings with
respect to fully developed appeals. If a claimant requests to
hold a hearing pursuant to such section 7107, such request
shall be deemed to be an election to revert to the standard
appeals process pursuant to subsection (b)(3).
(d) Duration; Application.--The Secretary shall carry out the pilot
program under subsection (a) for a five-year period beginning one year
after the date of the enactment of this Act. This section shall apply
only to fully developed appeals that are filed during such period.
(e) Reports.--During each year in which the pilot program under
subsection (a) is carried out, the Secretary shall submit to the
Committees on Veterans' Affairs of the House of Representatives and the
Senate a report on the pilot program. The first such report shall be
submitted by not later than 180 days after the date on which the pilot
program commences. Each report shall include the following:
(1) For the period covered by the report--
(A) the number of claimants who filed a fully
developed appeal under the pilot program;
(B) the average processing time for each such appeal,
measured by each phase of the appeal, and, if the
processing time for appeals exceed one year, the
reasons for such processing time;
(C) a summary of reasons for which the development of
evidence was required under subsection (c)(5);
(D) the number of issues decided, listed by the
disposition of the issue;
(E) of the number identified in subparagraph (D), the
number of issues for which evidence was not so
developed, listed by the disposition of the issue;
(F) of the number of fully developed appeals decided
by the Board of Veterans' Appeals, the number of cases
from each agency of original jurisdiction, listed by
the disposition of the issue;
(G) the number of fully developed appeals appealed to
the Court of Appeals for Veterans Claims, listed by the
disposition of the case;
(H) the number of reversions made under subsection
(b)(3); and
(I) any reasons for why a claimant was determined to
be ineligible to participate in the pilot program.
(2) A review, made in conjunction with veterans service
organizations, of the efforts of the Secretary to provide clear
rating decisions and improve disability rating notification
letters, including with respect to--
(A) the opinions of veterans service organizations
regarding such efforts; and
(B) how the pilot program improves such efforts.
(3) A recommendation for any changes to improve the pilot
program.
(4) An assessment of the feasibility and advisability of
expanding the pilot program.
(f) Regulations.--Not later than one day after the date of the
enactment of this Act, the Secretary shall publish interim guidance on
the pilot program under subsection (a). Not later than 90 days after
such date of enactment, the Secretary shall prescribe regulations to
carry out such pilot program.
(g) Definitions.--In this section:
(1) The term ``claimant'' has the meaning given that term in
section 5100 of title 38, United States Code.
(2) The term ``compensation'' has the meaning given that term
in section 101 of title 38, United States Code.
(3) The term ``fully developed appeal'' means an appeal of a
claim for disability compensation that is--
(A) filed by a claimant in accordance with subsection
(b)(1); and
(B) considered in accordance with this section.
(4) The term ``standard appeal'' means an appeal of a claim
for disability compensation that is not a fully developed
appeal.
SEC. 13. DEADLINE FOR CERTIFICATION OF APPEALS FORMS BY REGIONAL
OFFICES OF THE DEPARTMENT OF VETERANS AFFAIRS.
The Secretary of Veterans Affairs shall take such steps as may be
necessary to ensure that when a regional office of the Department of
Veterans Affairs receives a form known as ``VA Form 9, Appeal to Board
of Veterans' Appeals'', or any successor form, submitted by a veteran
to appeal a decision relating to a claim, the regional office certifies
such form by not later than one year after the date of the receipt of
the form.
SEC. 14. EVALUATION OF BACKLOG OF DISABILITY CLAIMS AND APPEALS OF
CLAIMS OF DEPARTMENT OF VETERANS AFFAIRS.
(a) In General.--There is established a commission or task force to
evaluate the backlog of claims within the Department of Veterans
Affairs and the appeals process of claims.
(b) Studies.--
(1) Backlog study.--
(A) In general.--The Commission or Task Force, acting
through the subcommittee described in subsection
(d)(2)(A), shall carry out a study on the backlog of
claims, including the current process the Secretary of
Veterans Affairs uses to evaluate claims and appeals
and the laws and regulations applicable to such claims
and appeals. Such study shall be a comprehensive
evaluation and assessment of the backlog of claims, an
analysis of possible improvements to the procedures
used to process such claims, and any related issues
that the Commission or Task Force considers relevant.
(B) Matters included.--In carrying out the study
under subparagraph (A), the Commission or Task Force
shall examine the following:
(i) The backlog of claims, including an
analysis of--
(I) the most effective means to
quickly and accurately resolve all
claims pending as of the date of the
study; and
(II) with respect to the Department,
the annual funding, number of full-time
employees, workload management
practices, and the progress, as of the
date of the study, of the strategic
plan.
(ii) Possible improvements to the claims
process, including an evaluation and
recommendations with respect to whether
substantive and structural changes to the
overall claims process are required.
(iii) In carrying out the evaluation and
recommendations under subparagraph (B), an
examination of--
(I) options that make no major
substantive changes to the claims
process;
(II) options that maintain the
process but make minor changes; and
(III) options that make broad changes
to the process.
(2) Appeals process study.--
(A) In general.--The Commission or Task Force, acting
through the subcommittee described in subsection
(d)(2)(B), shall carry out a study on the anticipated
increase of appeals of claims, including the current
appeals process and the laws and regulations applicable
to such appeals. Such study shall be a comprehensive
evaluation and assessment of such anticipated increase
of appeals claims, an analysis of possible improvements
to the procedures used to process such appeals, and any
related issues that the Commission or Task Force
considers relevant.
(B) Matters included.--In carrying out the study
under subparagraph (A), the Commission or Task Force
shall examine the following:
(i) The anticipated surge in appeals of
claims, including an analysis of--
(I) the most effective means to
quickly and accurately resolve pending
appeals and future appeals;
(II) with respect to both the Board
and the Court of Appeals for Veterans
Claims, the annual funding, number of
full-time employees, workload
management practices, and the progress,
as of the date of the study, of the
strategic plan; and
(III) the efficiency, effectiveness,
and utility of the Veterans Benefits
Management System with respect to
appeals operations, including an
identification of key changes that may
need to be implemented to such system.
(ii) Possible improvements to the appeals
process, including an evaluation and
recommendations with respect to whether
substantive and structural changes to the
overall appeals process are required.
(iii) In carrying out the evaluation and
recommendations under clause (ii), an
examination of--
(I) options that make no major
substantive changes to the appeals
process;
(II) options that maintain the
process but make minor changes;
(III) options that make broad changes
to the process;
(IV) the necessity of the multi-
tiered levels of appeals at the
regional office level, including filing
a notice of disagreement, receipt of a
statement of the case, supplemental
statement of the case (if applicable),
and substantive appeal (VA Form 9);
(V) the role of the Board and the
Appeals Management Center, including--
(aa) the effectiveness of the
workload management of the
Board and the Center;
(bb) whether the Board and
Center should be regionalized
or maintain the centralized
structure in the District of
Columbia;
(cc) whether Board members
should be required to pass the
administrative law judges
certification examination; and
(dd) whether the Board should
continue to require de novo
review of appeals; and
(VI) the role of the Court of Appeals
for Veterans Claims and the United
States Court of Appeals for the Federal
Circuit, including--
(aa) the continued
effectiveness and necessity of
a multi-tiered structure of
judicial review;
(bb) whether the Court of
Appeals for Veterans Claims
should have Article I or
Article III status;
(cc) expansion of either the
Court of Appeals for Veterans
Claims or the United States
Court of Appeals for the
Federal Circuit jurisdiction,
including by allowing such
courts to hear class action
lawsuits with respect to
claims; and
(dd) the possibility of
expanding judicial review of
claims to all Federal circuit
courts of appeals or allowing
judicial review beyond the
Court of Appeals for Veterans
Claims only by the Supreme
Court.
(3) Consideration.--In carrying out the studies under
paragraph (1)(A) and (2)(A) and making any recommendations
under this section, the Commission or Task Force shall consider
the following:
(A) The interests of veterans, including with respect
to accuracy, fairness, and transparency in the claims
process of the Department.
(B) The values and requirements of the Constitution,
including with respect to compliance with procedural
and substantive due process.
(C) The public interest, including with respect to
the responsible use of available resources.
(D) With respect to the study conducted under
paragraph (1)(A), the importance of the claimant
friendly, nonadversarial nature of the claims process.
(E) With respect to the study conducted under
paragraph (2)(A), the importance of an appeals process
that is efficient and easily understandable by a
claimant.
(4) Role of secretary, chairman of the board, and chief
judge.--
(A) Information.--In carrying out each study under
paragraph (1)(A) and (2)(A), at times that the
Commission or Task Force determines appropriate, the
Commission or Task Force shall submit to the Secretary
of Veterans Affairs, the Chairman of the Board, and the
Chief Judge of the Court of Appeals for Veterans
Claims, as the case may be, information with respect to
remedies and solutions that the Commission or Task
Force identifies pursuant to such a study.
(B) Implementation.--The Secretary, the Chairman of
the Board, and the Chief Judge shall each--
(i) fully consider the remedies and solutions
submitted to the Secretary, the Chairman, or
the Chief Judge, as the case may be, under
subparagraph (A);
(ii) implement such remedies and solutions as
the Secretary, the Chairman, or the Chief
Judge, respectively, determines appropriate;
and
(iii) submit to Congress justification for
failing to implement any such remedy or
solution.
(C) Plan.--The Commission or Task Force shall submit
to the Secretary, the Chairman of the Board, and the
Chief Judge a feasible, timely, and cost-effective plan
to eliminate the backlog of appeals of claims based on
the remedies and solutions identified pursuant to the
study under paragraph (2)(A) and the information
submitted under subparagraph (A).
(c) Comprehensive Reports.--
(1) Initial comprehensive report.--Not later than 60 days
after the date on which the Commission or Task Force first
meets, the Commission or Task Force shall submit to the
President and Congress an initial comprehensive report on the
studies conducted under paragraphs (1)(A) and (2)(A) of
subsection (b), including--
(A) the findings of the causes of the backlog of
claims;
(B) a proposed plan to handle the anticipated surge
in appeals of claims; and
(C) the level of cooperation the Commission or Task
Force has received from the Secretary and the heads of
other departments or agencies of the Federal
Government.
(2) Interim comprehensive reports.--Not later than 90 days
after the date on which the Commission or Task Force first
meets, and each 30-day period thereafter ending on the date on
which the Commission or Task Force submits the final
comprehensive report under paragraph (3), the Commission or
Task Force shall submit to the President and Congress a
comprehensive report on--
(A) the progress of the Secretary with respect to
implementing solutions to expedite the elimination of
the backlog of claims pursuant to subsection
(b)(4)(B)(ii);
(B) the progress of the Secretary, the Chairman of
the Board, and the Chief Judge of the Court of Appeals
for Veterans Claims with respect to implementing
solutions to complete appeals of claims in a timely
manner in a timely manner pursuant to such subsection;
and
(C) the level of cooperation the Commission or Task
Force has received from the Secretary and the heads of
other departments or agencies of the Federal
Government.
(3) Final comprehensive report.--Not later than 180 days
after the date on which the Commission or Task Force first
meets, the Commission or Task Force shall submit to the
President and Congress a comprehensive report on the following:
(A) With respect to the study conducted under
subsection (b)(1)(A)--
(i) The findings, conclusions, and
recommendations of the Commission or Task Force
with respect to the matters referred to in such
subsection.
(ii) The recommendations of the Commission or
Task Force for revising and improving the
backlog of claims and the procedures used to
process claims.
(iii) The progress of the Secretary with
respect to implementing solutions to expedite
the elimination of the backlog of claims
pursuant to subsection (b)(4)(B)(ii).
(iv) Other information and recommendations
with respect to claims as the Commission or
Task Force considers appropriate.
(B) With respect to the study conducted under
subsection (b)(2)(A)--
(i) The findings, conclusions, and
recommendations of the Commission or Task Force
with respect to the matters referred to in such
subsection.
(ii) The recommendations of the Commission or
Task Force for revising and improving the
appeals process;
(iii) The information described in subsection
(b)(4)(A).
(iv) The feasible, timely, and cost effective
plan described in subsection (b)(4)(C).
(v) The progress of the Secretary, the
Chairman of the Board, and the Chief Judge of
the Court of Appeals for Veterans Claims with
respect to implementing solutions to provide
timely appeals of claims.
(vi) Other information and recommendations
with respect to the appeals process as the
Commission or Task Force considers appropriate.
(d) Membership.--
(1) Number and appointment.--The Commission or Task Force
shall be composed of 15 members, appointed as follows:
(A) Two members appointed by the Speaker of the House
of Representatives, one of whom shall be designated to
serve upon the Subcommittee on the Backlog of Claims
and one of whom shall be designated to serve upon the
Subcommittee on Appeals.
(B) Two members appointed by the minority leader of
the House of Representatives, one of whom shall be
designated to serve upon the Subcommittee on the
Backlog of Claims and one of whom shall be designated
to serve upon the Subcommittee on Appeals.
(C) Two members appointed by the majority leader of
the Senate, one of whom shall be designated to serve
upon the Subcommittee on the Backlog of Claims and one
of whom shall be designated to serve upon the
Subcommittee on Appeals.
(D) Two members appointed by the minority leader of
the Senate, one of whom shall be designated to serve
upon the Subcommittee on the Backlog of Claims and one
of whom shall be designated to serve upon the
Subcommittee on Appeals.
(E) Three members appointed by the President, two of
whom shall be designated to serve upon the Subcommittee
on the Backlog of Claims and one of whom shall be
designated to serve upon the Subcommittee on Appeals.
(F) One member appointed by the Secretary of Defense,
whom shall be designated to serve upon the Subcommittee
on the Backlog of Claims.
(G) Two members appointed by the Secretary of
Veterans Affairs, one of whom shall be designated to
serve upon the Subcommittee on the Backlog of Claims
and one of whom shall be designated to serve upon the
Subcommittee on Appeals.
(H) One member appointed by the Chief Judge of the
Court of Appeals for Veterans Claims, whom shall be
designated to serve upon the Subcommittee on Appeals.
(2) Subcommittees.--The Commission or Task Force shall have
two subcommittees as follows:
(A) A Subcommittee on the Backlog of Claims
consisting of the eight members designated in
accordance with paragraph (1).
(B) A Subcommittee on Appeals consisting of the seven
members designated in accordance with paragraph (1).
(3) Qualifications.--Each member appointed under paragraph
(1) shall be appointed based on the experience of the member as
a veteran or on the subject matter expertise or other relevant
experience of the member.
(4) Advisors.--
(A) In general.--In addition to the 15 members
appointed under paragraph (1), the Commission or Task
Force shall--
(i) have five nonvoting, nonmember advisors,
appointed by a majority of the Commission or
Task Force, each from a different organization
that represents the interests of veterans; and
(ii) seek advice from experts from
nongovernmental organizations (including
veterans service organizations and military
organizations), the Internet technology
industry, and the insurance industry.
(B) Advice.--Individuals described in clause (i) and
(ii) of subparagraph (A) shall provide advice to both
subcommittees described in paragraph (2).
(5) Chairman.--The President shall designate a member of the
Commission or Task Force who is appointed by the President and
designated to serve upon the Subcommittee on the Backlog of
Claims to serve as the chairman of the Commission or Task
Force. The chairman may designate a member to serve as the
chairman of the Subcommittee on the Backlog of Claims and a
member to serve as the chairman of the Subcommittee on Appeals
to chair such subcommittees as the designee of the chairman of
the Commission or Task Force.
(6) Period of appointment.--Members of the Commission or Task
Force shall be appointed for the life of the Commission or Task
Force. A vacancy shall not affect its powers.
(7) Vacancy.--A vacancy on the Commission or Task Force shall
be filled in the manner in which the original appointment was
made.
(8) Appointment deadline.--The appointment of members of the
Commission or Task Force established in this section shall be
made not later than 15 days after the date of the enactment of
this Act.
(e) Meetings.--
(1) Initial meeting.--The Commission or Task Force shall hold
its first meeting not later than 15 days after the date on
which a majority of the members are appointed.
(2) Meetings.--The Commission or Task Force shall meet at the
call of the chairman.
(3) Quorum.--A majority of the members of the Commission or
Task Force shall constitute a quorum, but a lesser number may
hold hearings.
(f) Powers of the Commission or Task Force.--
(1) Hearings.--The Commission or Task Force may hold such
hearings, sit and act at such times and places, take such
testimony, and receive such evidence as the Commission or Task
Force considers advisable to carry out the purposes of this
section.
(2) Information from federal agencies.--The Commission or
Task Force may secure directly from any department or agency of
the Federal Government such information as the Commission or
Task Force considers necessary to carry out the provisions of
this section. Upon request of the chairman, the head of such
department or agency shall furnish such information to the
Commission or Task Force.
(3) Postal services.--The Commission or Task Force may use
the United States mails in the same manner and under the same
conditions as other departments and agencies of the Federal
Government.
(4) Gifts.--The Commission or Task Force may accept, use, and
dispose of gifts or donations of service or property.
(g) Personnel Matters.--
(1) Compensation of members.--Each member of the Commission
or Task Force who is not an officer or employee of the United
States shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for level
IV of the Executive Schedule under section 5315 of title 5,
United States Code, for each day (including travel time) during
which the member is engaged in the performance of the duties of
the Commission or Task Force. All members of the Commission or
Task Force who are officers or employees of the United States
shall serve without compensation in addition to that received
for their services as officers or employees of the United
States.
(2) Travel expenses.--The members of the Commission or Task
Force shall be allowed travel expenses, including per diem in
lieu of subsistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or regular places of
business in the performance of service of the Commission or
Task Force.
(3) Staff.--
(A) Appointment.--The chairman of the Commission or
Task Force may, without regard to the civil service
laws and regulations, appoint an executive director and
such other personnel as may be necessary to enable the
Commission or Task Force to perform its duties. The
appointment of an executive director shall be subject
to the approval of the Commission or Task Force.
(B) Compensation.--The chairman of the Commission or
Task Force may fix the compensation of the executive
director and other personnel without regard to the
provisions of chapter 51 and subchapter III of chapter
53 of title 5, United States Code, relating to
classification of positions and General Schedule pay
rates, except that the rate of pay for the executive
director and other personnel may not exceed the rate
payable for level V of the Executive Schedule under
section 5316 of such title.
(4) Detail of government employees.--Upon request of the
chairman of the Commission or Task Force, the head of any
department or agency of the Federal Government may detail, on a
nonreimbursable basis, any personnel of that department or
agency to the Commission or Task Force to assist it in carrying
out its duties.
(5) Procurement of temporary and intermittent services.--The
chairman of the Commission or Task Force may procure temporary
and intermittent services under section 3109(b) of title 5,
United States Code, at rates for individuals which do not
exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under section
5316 of such title.
(h) Termination of Commission or Task Force.--The Commission or Task
Force shall terminate 60 days after the date on which the Commission or
Task Force submits the final comprehensive report under subsection
(c)(3).
(i) Funding.--
(1) In general.--The Secretary shall, upon the request of the
chairman of the Commission or Task Force, make available to the
Commission or Task Force such amounts as the Commission or Task
Force may require to carry out the duties of the Commission or
Task Force under this section.
(2) Availability.--Any sums made available to the Commission
or Task Force shall remain available, without fiscal year
limitation, until the termination of the Commission or Task
Force.
(j) Definitions.--In this section:
(1) The term ``appeals process'' means the process to appeal
the determination by the Secretary of a claim beginning with
the notice of disagreement filed pursuant to section 7105 of
title 38, United States Code, and ending with the review of a
decision by the Supreme Court pursuant to section 7292(c) of
such title.
(2) The term ``Board'' means the Board of Veterans' Appeals.
(3) The term ``strategic plan'' means the Strategic Plan to
Eliminate the Compensation Claims Backlog, published by the
Secretary of Veterans Affairs on January 25, 2013.
(k) Effective Date.--This section shall take effect on the date that
is one year after the date of the enactment of this Act.
SEC. 15. METHODS FOR VALIDATING CERTAIN WORLD WAR II MERCHANT MARINER
SERVICE CONSIDERED TO BE ACTIVE SERVICE BY THE
SECRETARY OF VETERANS AFFAIRS.
(a) In General.--For the purposes of verifying that an individual
performed service under honorable conditions that satisfies the
requirements of a coastwise merchant seaman who is recognized pursuant
to section 401 of the GI Bill Improvement Act of 1977 (Public Law 95-
202; 38 U.S.C. 106 note) as having performed active duty service for
the purposes described in subsection (c)(1), the Secretary of Homeland
Security shall accept the following:
(1) In the case of an individual who served on a coastwise
merchant vessel seeking such recognition for whom no applicable
Coast Guard shipping or discharge form, ship logbook, merchant
mariner's document or Z-card, or other official employment
record is available, the Secretary shall provide such
recognition on the basis of applicable Social Security
Administration records submitted for or by the individual,
together with validated testimony given by the individual or
the primary next of kin of the individual that the individual
performed such service during the period beginning on December
7, 1941, and ending on December 31, 1946.
(2) In the case of an individual who served on a coastwise
merchant vessel seeking such recognition for whom the
applicable Coast Guard shipping or discharge form, ship
logbook, merchant mariner's document or Z-card, or other
official employment record has been destroyed or otherwise
become unavailable by reason of any action committed by a
person responsible for the control and maintenance of such
form, logbook, or record, the Secretary shall accept other
official documentation demonstrating that the individual
performed such service during period beginning on December 7,
1941, and ending on December 31, 1946.
(3) For the purpose of determining whether to recognize
service allegedly performed during the period beginning on
December 7, 1941, and ending on December 31, 1946, the
Secretary shall recognize masters of seagoing vessels or other
officers in command of similarly organized groups as agents of
the United States who were authorized to document any
individual for purposes of hiring the individual to perform
service in the merchant marine or discharging an individual
from such service.
(b) Treatment of Other Documentation.--Other documentation accepted
by the Secretary of Homeland Security pursuant to subsection (a)(2)
shall satisfy all requirements for eligibility of service during the
period beginning on December 7, 1941, and ending on December 31, 1946.
(c) Benefits Allowed.--
(1) Burial benefits eligibility.--Service of an individual
that is considered active duty pursuant to subsection (a) shall
be considered as active duty service with respect to providing
burial benefits under chapters 23 and 24 of title 38, United
States Code, to the individual.
(2) Medals, ribbons, and decorations.--An individual whose
service is recognized as active duty pursuant to subsection (a)
may be awarded an appropriate medal, ribbon, or other military
decoration based on such service.
(3) Status of veteran.--An individual whose service is
recognized as active duty pursuant to subsection (a) shall be
honored as a veteran but shall not be entitled by reason of
such recognized service to any benefit that is not described in
this subsection.
(d) Determination of Coastwise Merchant Seaman.--The Secretary of
Homeland Security shall verify that an individual performed service
under honorable conditions that satisfies the requirements of a
coastwise merchant seaman pursuant to this section without regard to
the sex, age, or disability of the individual during the period in
which the individual served as such a coastwise merchant seaman.
(e) Definition of Primary Next of Kin.--In this section, the term
``primary next of kin'' with respect to an individual seeking
recognition for service under this section means the closest living
relative of the individual who was alive during the period of such
service.
(f) Effective Date.--This section shall take effect 90 days after the
date of the enactment of this Act.
SEC. 16. DESIGNATION OF AMERICAN WORLD WAR II CITIES.
(a) In General.--The Secretary of Veterans Affairs shall designate at
least one city in the United States each year as an ``American World
War II City''.
(b) Criteria for Designation.--After the designation made under
subsection (c), the Secretary, in consultation with the Secretary of
Defense, shall make each designation under subsection (a) based on the
following criteria:
(1) Contributions by a city to the war effort during World
War II, including those related to defense manufacturing, bond
drives, service in the Armed Forces, and the presence of
military facilities within the city.
(2) Efforts by a city to preserve the history of the city's
contributions during World War II, including through the
establishment of preservation organizations or museums,
restoration of World War II facilities, and recognition of
World War II veterans.
(c) First American World War II City.--The city of Wilmington, North
Carolina, is designated as an ``American World War II City''.
SEC. 17. SENSE OF CONGRESS REGARDING AMERICAN VETERANS DISABLED FOR
LIFE.
(a) Findings.--Congress makes the following findings:
(1) There are at least 3,600,000 veterans currently living
with service-connected disabilities.
(2) As a result of their service, many veterans are
permanently disabled throughout their lives and in many cases
must rely on the support of their families and friends when
these visible and invisible burdens become too much to bear
alone.
(3) October 5, which is the anniversary of the dedication of
the American Veterans Disabled for Life Memorial, has been
recognized as an appropriate day on which to honor American
veterans disabled for life each year.
(b) Sense of Congress.--Congress--
(1) expresses its appreciation to the men and women left
permanently wounded, ill, or injured as a result of their
service in the Armed Forces;
(2) supports the annual recognition of American veterans
disabled for life each year; and
(3) encourages the American people to honor American veterans
disabled for life each year with appropriate programs and
activities.
Purpose and Summary
H.R. 677, the American Heroes COLA Act of 2015 was
introduced by Representative Abraham of Louisiana on February
3, 2015, H.R. 677, as amended, incorporates the text H.R. 677
and provisions from the following bills: H.R. 245, introduced
by Representative Abraham of Louisiana on January 9, 2015; H.R.
517, introduced by Representative Titus of Nevada on February
6, 2015; H.R. 732, introduced by Representative Ruiz of
California on February 4, 2015; H.R. 800, introduced by
Representative O'Rourke of Texas on February 5, 2015; H.R.
1288, introduced by Representative Butterfield of North
Carolina on March 4, 2015; H.R. 1302, introduced by
Representative Latta of Ohio on March 4, 2015; H.R. 1331,
introduced by Representative Walz of Minnesota on March 4,
2015; H.R. 1380, introduced by Representative Miller of Florida
on March 16, 2015; H.R. 1512, introduced by Representative
Rouzer of North Carolina on April 7, 2015; H.R. 2214,
introduced by Representative Abraham of Louisiana on May 1,
2015; H.R. 2286, as introduced by Representative Paul Cook of
California on May 13, 2015; H.R. 2605, introduced by
Representative Johnson of Ohio on June 2, 2015; H.R. 2691,
introduced by Representative Ruiz of California on June 9,
2015; and, H. Con. Res. 53, introduced by Representative
Frankel of Florida on May 26, 2015. Together, these provisions
would improve the expedient and accurate processing of benefits
claims and appeals, ensure appropriate availability of benefits
and headstone adornments, increase availability of medical
evidence for benefits cases, as well as bestow honors and make
other crucial changes as it pertains to veterans' status and
designations.
Background and Need for Legislation
Section 2. Expansion of eligibility for medallions
Under current law, the Department of Veterans Affairs (VA)
may provide a medallion that signifies an individual's status
as a veteran to be attached to a privately purchased headstone
or marker for veterans who died on or after November 1, 1990.
The reason that this medallion is currently only available to
veterans who died after October 31, 1990, is because from
November 1, 1990, through September 11, 2001, VA did not pay
for a private headstone or marker for veterans who were
qualified for interment in a national or state veterans'
cemetery. Thus, the medallions were provided as a way to
distinguish the privately purchased headstones of veterans who
died after November 1, 1990.
These medallions have been very much appreciated by
veterans and their families and VA has received many requests
for such medallions. According to VA testimony, since the
Department began providing medallions in 2009, 91 percent of
requests for these emblems have been denied because otherwise
qualifying veterans died between 1960 and November 1, 1990.\1\
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\1\McLenachen, David R., Acting Deputy Under Secretary for
Disability Assistance, Veterans Benefits Administration, U.S.
Department of Veterans Affairs, Statement to the House of
Representatives Committee on Veterans' Affairs, Subcommittee on
Disability Assistance and Memorial Affairs Hearing on June 24, 2015.
---------------------------------------------------------------------------
During the Subcommittee on Disability Assistance and
Memorial Affairs hearing on June 24, 2015, The American Legion,
Disabled American Veterans, Veterans of Foreign Wars, Iraq and
Afghanistan Veterans of America, and Paralyzed Veterans of
America testified in support of expanding the eligibility for
such medallions. AMVETS and VA also testified in support of
allowing more veterans to qualify for the medallions, but
recommended that eligibility be restricted to help protect
antique headstones and ensure that the landscape of historic
cemeteries be preserved. Providing such medallions to veterans
who served in the military after April 6, 1917, would help
distinguish the final resting place of veterans who are buried
in private cemeteries, while allowing the National Cemetery
Administration to comply with historic preservation and federal
stewardship statutes and regulations.
Section 3. Definitions relating to claims for benefits under laws
administered by the Secretary of Veterans Affairs
This section would establish uniform definitions for the
following terms: ``claimant,'' ``claim,'' and ``formal claim.''
Establishing uniform definitions would ensure consistency in
the types of information included in VA's reports to Congress
with respect to VA's claims processing procedures.
Section 4. Quarterly reports on formal and informal claims for benefits
under laws administered by the Secretary of Veterans Affairs
To improve congressional oversight of VA's claims
processing procedures, this section would mandate that VA
submit quarterly reports to the Committees on Veterans' Affairs
of the Senate and House of Representatives. Such reports would
include the following information: (1) the total number of
claims submitted to VA; (2) the total number of informal claims
submitted to VA; (3) the total number of formal claims
submitted to VA; (4) the total number of forms indicating an
intent to file a claim for benefits submitted to VA; (5) the
total number of claims notification letters sent by VA that
included an invitation to the claimant to submit an additional
formal claim, and of those, the total number who submitted a
formal claim in response to such notification letters; (6) the
total number of electronically filed claims submitted to VA;
and, (7) the total number of fully-developed claims submitted
to VA.
It is inefficient to require a veteran who is seeking an
increased rating or to reopen a claim to submit information
that is already in VA's possession. Therefore, section 4 would
express the sense of Congress that VA should develop a
designated form for an increased rating claim or reopening of a
claim that does not require the resubmittal of information
previously submitted on a formal claim form.
Section 5. Expedited payment of survivors benefits
VA provides several benefits to qualifying family members
of certain deceased veterans, including Dependency and
Indemnity Compensation (DIC), survivors' pension, home loans,
and the Dependents' Educational Assistance Program. In most
cases, VA's records already include many of the documents
necessary to grant benefits to his or her survivors, such as
the veteran's DD-214. However, to qualify for benefits, the
survivor is required to file a formal claim and resubmit
evidence that VA already has, such as the veteran's service-
connected disability ratings.
The current system for processing survivor's benefits is
inefficient because VA employees are required to review
paperwork that may already be in the veteran's file.
Furthermore, the application process places a burden on the
veteran's grieving family members, who are forced to file a
formal claim and resubmit documents that may already be in VA's
possession.
Section 5 of H.R. 677, as amended, would authorize VA to
automatically pay benefits to qualified survivors of veterans,
as long as VA has the information necessary to establish
entitlement to benefits. The survivor would be able to submit
new evidence, such as the death certificate and other
information, but the survivor would not have to file a formal
claim. Additionally, Section 5 would establish that the date
the survivor notified VA of the death of the veteran would
serve as the date of receipt of such a claim.
This section would also require that not later than one
year after the date of enactment of this Act, VA would submit
to the Committees on Veterans' Affairs of the Senate and the
House of Representatives a report with certain information
regarding survivors' claims adjudicated during the period of
time covered by such report. Such report would include any
recommendations VA may have for legislative or administrative
action to improve the adjudication of survivors' claims
submitted to VA. Finally, section 5 would establish that the
effective date of this section would apply with respect to
claims for benefits based on a death occurring on or after the
date of enactment of this Act.
Section 6. Priority for processing claims of the Department of Veterans
Affairs
Section 6 of H.R. 677, as amended, would require the
Secretary of Veterans Affairs to prioritize disability benefits
claims submitted by veterans who: (1) have attained the age of
70; (2) are terminally ill; (3) have life-threatening
illnesses; (4) are homeless; (5) have received the Medal of
Honor; (6) were prisoners of war; (7) have claims being
reviewed again in relation to a previously denied claim
relating to military sexual trauma; (8) the Secretary
determines, on a case-by-case basis, are seriously or very
seriously injured; and, (9) the Secretary determines a good
cause justifies prioritization.
Current VA practice allows the prioritization of certain
claims, to include applications filed by Medal of Honor
recipients, homeless veterans, veterans experiencing extreme
financial hardships, and veterans suffering from terminal
illness. Thus, current VA policy has already identified certain
classes of claimants and determined that expedited treatment
may be appropriate in some instances. Most of the classes of
claimants enumerated in Section 6 currently qualify for
prioritization and expedited process under VA's policy.
However, on June 28, 2013, at a Subcommittee on Disability
Assistance and Memorial Affairs legislative hearing on this
proposal, Veterans Benefits Administration Director of
Compensation Service, Thomas Murphy, testified that it is not
guaranteed that this VA practice is uniformly applied across
all regional offices. Accordingly, it is the intent of this
Section to create a statutory requirement in order to ensure
uniform prioritization for veterans who have the most urgent
claims. The codification of this requirement would ensure
uniform application of the priority classes, while still giving
discretion to the Secretary of Veterans Affairs to provide for
the prioritization of additional claims on a case-by-case
basis.
Section 7. Treatment of medical evidence provided by non-department of
Veterans Affairs medical professionals in support of claims for
disability compensation
VA may afford medical examinations to veterans seeking
disability benefits, but there is often a long wait time before
these examinations can be scheduled by VA. Moreover, many
veterans prefer to submit private medical evidence to support
their claims for disability benefits.
Section 1525 of title 38, U.S.C., currently states: ``For
purposes of establishing any claim for benefits under chapter
11 or 15 of this title [38 USCS Sec. Sec. 1101 et seq. or 1501
et seq.], a report of a medical examination administered by a
private physician that is provided by a claimant in support of
a claim for benefits under that chapter may be accepted without
a requirement for confirmation by an examination by a physician
employed by the Veterans Health Administration if the report is
sufficiently complete to be adequate for the purpose of
adjudicating such claim.''
During the April 14, 2015, Subcommittee on Disability
Assistance and Memorial Affairs hearing, The American Legion
testified that it had documented many instances of VA
scheduling unnecessary and duplicative examinations with a VA
physician, even though there was already sufficient medical
evidence in the claims file from a private physician to decide
the claim. These duplicative examinations add unnecessary
delays to the disability claims process.
Section 7 would require VA to accept a medical examination
administered by a private physician if such examination report
is sufficiently complete. This Section would define
``sufficiently complete'' to mean ``competent, credible,
probative, and containing such information as may be required
to make a decision on the claim from which the report is
provided.'' However, if VA decides that the evidence submitted
by a non-VA physician is not sufficiently complete, Section 7
would require VA to provide the veteran with a thorough
explanation of why such medical opinion does not include
adequate information for VA to issue a decision on the claim,
and the reason why additional medical evidence is necessary.
Finally, this section would establish that the effective date
of this Section would apply with respect to medical evidence
submitted after the date that is one year after the date of
enactment.
Section 7 would improve VA's claims processing system by
eliminating the requirement that claimants undergo unnecessary
examinations. Moreover, requiring VA to accept a sufficiently
complete report from a private physician would result in a
reduction in the number of disability examinations conducted by
VA physicians. This would allow VA's medical professionals to
devote more resources to providing care for our nation's
veterans and improve timeliness for those VA compensation
examinations conducted by VA physicians.
Section 8. Automatic annual increase in rates of disability
compensation and dependency and indemnity compensation
The basic purpose of the disability compensation program is
to provide relief from the impaired earning capacity of
veterans who are disabled as a result of their military
service. The amount of compensation payable varies according to
the degree of disability. This amount in turn is required by
law to represent, to the extent practicable, the average
impairment in earning capacity in civilian occupations
resulting from such disability or combination of disabilities.
To be eligible to receive disability compensation, a veteran
must have a disability incurred in or aggravated by military
service, which is not the result of willful misconduct, and
must have been discharged under other than dishonorable
conditions. The responsibility for determining a veteran's
entitlement to service-connection for a disability rests with
VA.
Surviving spouses and dependent children of veterans who
died as a result of disabilities determined by VA to be
service-connected (including veterans who died while on active
duty), or who had a service-connected disability rated at 100
percent for a specified minimum amount of time prior to death,
are entitled to receive monthly DIC benefits. Additional
amounts are paid to survivors who are housebound, in need of
aid and attendance, or who have minor children. The purpose of
DIC benefits authorized under chapter 13 of title 38, U.S.C.,
is to provide partial compensation to the appropriate survivors
for the loss in financial support due to the veteran's service-
connected death. Income and need are not factors in determining
a surviving spouse's or child's entitlement because the nation,
in part, assumes the legal and moral obligation of the veteran
to support the spouse and children.
Each year, the Committee approves and reports legislation
that sets the cost-of-living adjustment (COLA) by reference to
the Social Security increase. Although the Committee typically
passes such legislation each year, veterans must wait for
Congress to act before they are granted such an increase. In
contrast, Social Security beneficiaries receive an automatic
and annual COLA if there is an increase in the Consumer Price
Index for Urban Wage Earners and Clerical Workers (CPI-W) in
the previous year.\2\ Accordingly, service-disabled veterans
who are receiving disability benefits from VA should also
automatically receive their benefits increase, particularly in
light of the current economic climate.
---------------------------------------------------------------------------
\2\Under current law, the COLA equals the percentage increase in
the average CPI-W from the third quarter of the base year (the last
year for which a COLA was applied) to the third quarter of the current
year.
---------------------------------------------------------------------------
To correct this inequity, rather than being subject to the
uncertainty of an annual COLA bill, this Section would make
compensation to veterans and their dependents permanently
subject to the same COLA as Social Security recipients. By
making such an increase automatic, veterans would not have to
wait for Congress to pass an annual COLA bill before receiving
the COLA increase in benefits. Further, because a COLA is
assumed in the Congressional Budget Office's baseline, there is
no projected increase in mandatory spending relative to the
baseline projected for this provision.
Section 9. Improvement of fiduciaries for veterans
Section 9 would provide reforms to VA's fiduciary program.
Specifically, chapter 55 of title 38, U.S.C., provides
authority for the VA fiduciary program, which is intended to
help veterans and other VA beneficiaries who are deemed by the
Secretary of Veterans Affairs to be mentally incompetent for
purposes of handling their financial affairs. In such cases,
the Secretary appoints a fiduciary who, by statute, is only
authorized to receive and manage benefits administered by the
Secretary on behalf of the beneficiary. The fiduciary is
responsible for ensuring that a beneficiary's bills are paid on
time and that a beneficiary receives money to pay for food,
shelter, clothing, medical expenses, and other necessities.
The framework established in chapter 55 allows VA a great
deal of latitude in implementing the fiduciary program. Section
9 is designed to transform VA's fiduciary program to better
serve the needs of our most vulnerable veterans and their
hardworking fiduciaries, and to protect veterans in the program
from falling victim to deceitful and criminal fiduciaries.
Section 9 would overhaul the VA fiduciary program, making many
necessary reforms to address problems identified in recent
years and would realign chapter 55 to a structure more
consistent with other amended sections of title 38, U.S.C.
Under current law, a VA beneficiary may appeal VA's
decision to appoint a fiduciary. However, the appeals process
within VA's fiduciary program is difficult, slow, and often
results in healthy, capable veterans being unable to remove
themselves from the program. Section 9 would require that
whenever the Secretary appoints a fiduciary, the Secretary must
provide a written statement detailing the reasons why such
beneficiary is unable to handle his or her VA funds.
Furthermore, the beneficiary would be allowed to appeal the
finding of incompetence at any time. This provision not only
enables a veteran to remain out of the fiduciary program if
medical evidence supports such a position, it would also allow
a veteran who has sufficiently recovered at a later time to
return to managing his or her own financial affairs.
This Section would also permit a veteran or other VA
beneficiary to request the appointment of a new fiduciary if it
is perceived that the current fiduciary is not acting in the
best interest of the veteran or has an irreconcilable
personality conflict or disagreement. The Secretary may deny
the removal of an appointed fiduciary if it is determined that
the request was not made in good faith, and would ensure that
the delivery of benefits is not interrupted if a previous
fiduciary is removed and a new one appointed.
This section would enable a veteran or other VA beneficiary
to designate a preferred fiduciary ahead of time, such as a
family member or guardian. While the Secretary would not be
required to appoint the designated fiduciary, the reason for
not appointing that fiduciary would have to be presented in
writing to the veteran as would a notice of the veteran's right
to modify the appointment. In many cases, a veteran or other VA
beneficiary may already have a family member or court-appointed
guardian acting as a fiduciary for other benefits, and in cases
where the veteran is happy with the fiduciary's performance of
those duties, a sensible approach would be to maintain that
relationship.
In response to due process concerns raised by the Veterans
of Foreign Wars, during the July 9, 2015, Disability Assistance
and Memorial Affairs subcommittee legislative hearing, an
amendment was adopted that removed the provision authorizing
the appointment of a temporary fiduciary in cases where the
veteran was not yet afforded a hearing. If a beneficiary does
not designate a preferred fiduciary in advance, Section 9 would
also establish the priority for VA to follow when determining
whom to appoint as the veteran's fiduciary. Such priority would
include a relative of the beneficiary, the person appointed as
guardian of the beneficiary by a court of competent
jurisdiction, and anyone authorized to act on behalf of the
beneficiary under a durable power of attorney.
Under certain circumstances, the Secretary may decide that
a paid fiduciary is in a veteran's or other VA beneficiary's
best interest. Currently, Section 5502(a)(2) of title 38,
U.S.C., states that a fiduciary may receive a commission for
his or her efforts, but that commission may not exceed four
percent of the monetary benefits a beneficiary receives in one
year. Investigations, hearings, and media reports have
identified many problems in the fiduciary program arising from
paid fiduciaries receiving more than the amount authorized
under law, including receiving commissions from retroactive and
lump sum payments to veterans. Further, evidence has also
revealed VA field examiners directing fiduciaries to take
income from non-VA benefits as well, an action explicitly not
authorized by law. In some cases, the veteran beneficiary had
not received basic funding for food, clothing, and shelter that
should have been administered by the fiduciary.
The Committee has continued to hold hearings and conduct
investigations that have indicated that current law and policy
regarding commissions paid to fiduciaries are frequently
violated throughout the nation. Additionally, the commission
rate paid to VA-appointed fiduciaries is already higher than
that paid by the Social Security Administration (SSA) under the
Representative Payee Program, the SSA's equivalent to VA's
fiduciary program.
Section 9 would reduce the commission rate paid to
fiduciaries, if the Secretary determines that a paid fiduciary
is in the best interest of the veteran, to not more than 3
percent of the veteran's monthly benefits, or $35 per month,
whichever is less. Any desire by VA to increase this rate would
require congressional authorization. This commission rate would
give VA's fiduciary program a similar structure to the SSA's
Representative Payee Program and would reduce the profit motive
of predatory fiduciaries. This section would also clarify that
(1) commission payments are not to be derived from retroactive
or lump sum payments; (2) fiduciaries who are determined to
misuse a veteran's benefits may not receive commissions; (3)
fiduciaries found to be misusing funds may have their status as
fiduciaries revoked; (4) the Secretary may seek compensation in
a court of law from fiduciaries found to misuse benefits or
fiduciaries who fail to adequately account for a veteran's
benefits; and, (5) funds remaining with a paid fiduciary after
a veteran's passing would escheat to the federal government.
Reducing the financial incentive for a predatory fiduciary to
apply to VA's fiduciary program provides further assurance that
participants are working in the best interest of vulnerable
veterans.
According to testimony provided by the VA Office of
Inspector General (OIG), from April 1, 2010, to March 31, 2015,
the OIG conducted 216 investigations involving fiduciary fraud
and arrested 94 fiduciaries and/or associates.\3\ Furthermore,
Committee investigations have documented cases of convicted
felons serving as fiduciaries, as well as fiduciaries with no
knowledge of or training regarding their duties to the veteran.
Many cases of embezzlement of a veteran's funds could have been
prevented with a basic background check of a fiduciary.
However, VA frequently used its authority to waive the current
background check requirement for appointment of a fiduciary,
and failed to follow up at a later point in time to determine
the suitability of the appointed fiduciary.
---------------------------------------------------------------------------
\3\Abe, Gary, K., Deputy Assistant Inspector General for Audits and
Evaluations, Office of Inspector General, U.S. Department of Veterans
Affairs, Statement to the House of Representatives Committee on
Veterans' Affairs, Subcommittee on Disability Assistance and Memorial
Affairs Hearing on June 11, 2015.
---------------------------------------------------------------------------
Furthermore, on June 1, 2015, the OIG issued a report
finding that VA failed to schedule required field examinations
in a timely manner. The purpose of VA's field examinations is
to assess the welfare of the veteran through personal contact
via a visit to the veteran's home. Field examinations are also
used to review fund usage and the overall performance of the
fiduciary. OIG reported that during Calendar Year 2013, VA did
not meet timeliness standards for about 45,500 of approximately
109,000 (42%) field examinations. Of those 45,500 examinations,
approximately 18,100 were still not completed as of December
31, 2013.
Moreover, the Veterans Benefits Administration (VBA) did
not meet timeliness standards for about 54,000 of approximately
106,400 field examinations for the first three quarters of
Calendar Year 2014. Of the 54,000 field examinations that did
not meet timeliness standards in the first three quarters of
Calendar Year 2014, approximately 21,900 were still not
completed as of September 2014. As a result, the OIG concluded
that untimely field examinations placed approximately $360.7
million in benefit payments and $487.6 million in estate values
at increased risk of misuse. In addition, the OIG determined
that VBA had failed to schedule required field examinations for
approximately 1,800 beneficiaries in Calendar Year 2013.\4\
---------------------------------------------------------------------------
\4\Ibid, at page 3.
---------------------------------------------------------------------------
Field examinations are essential to ensure that the veteran
is adequately protected. The Committee is concerned that VA's
failure to conduct timely field examinations may be evidence
that VA is not adequately fulfilling its required oversight of
fiduciaries. The lack of oversight may place the general health
and well-being of beneficiaries at risk.
Section 9 would improve the oversight and the qualification
processes for fiduciaries by requiring the Secretary to perform
civil and criminal background investigations, and conduct a
face-to-face interview prior to certifying an individual as a
fiduciary. In response to concerns that performing background
checks may slow the fiduciary appointment process, authority
would be provided to the Secretary, to expedite background
checks where necessary. This Section would also protect
veterans' sensitive personal information and would mandate the
furnishing of a bond when required by the Secretary, before
certifying an individual as a fiduciary. Veterans service
organizations (VSOs) raised concerns that the requirement of a
bond for family or caregiver fiduciaries causes undue hardship
upon those closest to the veteran; to address these concerns,
Section 9 would allow the Secretary to consider the existence
of a familial or personal relationship between the proposed
fiduciary and beneficiary, as well as the care the proposed
fiduciary has taken to protect the interests of the
beneficiary.
Committee investigations have yielded information regarding
cases where a veteran or other VA beneficiary had never met nor
heard from his or her fiduciary.\5\ According to one witness at
an oversight hearing conducted on February 9, 2012, this lack
of accountability on the part of fiduciaries, coupled with VA's
lack of oversight, contributed to allegations that some
veterans did not receive the necessary funds to pay basic
utilities and predatory fiduciaries making a profit at the
expense of the veteran.\6\
---------------------------------------------------------------------------
\5\Rosinski, Doug, Attorney, Law Office of Douglas J. Rosinski,
Esq., Testimony to the House of Representatives Committee on Veterans'
Affairs Subcommittee on Oversight and Investigations Hearing on
February 9, 2012.
\6\Eagle, Katrina, Attorney, Law office of Katrina J. Eagle, Esq,
Testimony to the House of Representatives Committee on Veterans'
Affairs Subcommittee on Oversight and Investigations Hearing on
February 9, 2012.
---------------------------------------------------------------------------
To improve VA oversight of fiduciaries, Section 9 contains
a provision that would require an annual accounting by
fiduciaries of benefits earned, benefits disbursed, and the
remaining balance as well as other fiduciary-controlled sources
of income of that veteran. The fiduciary would also be required
to report any events affecting his or her ability to serve the
veteran, including criminal convictions, bankruptcy filings,
and judgments filed against the fiduciary. Any events reported
in the annual accounting may be considered by the Secretary in
determining a fiduciary's ability to continue serving the best
interest of the veteran. This annual report would be
transmitted to the beneficiary or the beneficiary's guardian.
Under current law, VA is not required to review a
fiduciary's annual accounting. VA's current policy generally
requires fiduciaries to submit an annual accounting in cases
where: the beneficiary's annual VA benefit amount equals or
exceeds the compensation payable to a veteran with a service-
connected disability that is rated totally disabling; the
beneficiary's accumulated VA funds under management by a
fiduciary is $10,000 or more; the fiduciary was appointed by a
court; or, the fiduciary receives a fee. Such audits generally
require a statement of the beginning account balance, a
detailed accounting of the funds managed on behalf of the
beneficiary, a detailed list of the expenses paid, and the
ending account balance.
Section 9 would provide for specific treatment of caregiver
fiduciaries, ensuring that a limited annual report is required.
However, Section 9 would give VA the opportunity to audit
fiduciaries whose accounting is suspect. The Secretary would be
given discretion to adjust the content required under an annual
report or accounting with respect to a caregiver fiduciary whom
the Secretary determines to have effectively protected the
interests of the beneficiary over a sustained period, including
the parameters for the posting of bond as mentioned above.
Additionally, the VBA and the Veterans Health Administration
(VHA) would be required to coordinate and minimize the
frequency with which employees of VA visit the home of a
caregiver fiduciary and beneficiary, and limit the extent of
supervision by Under Secretaries with respect to such a
fiduciary and beneficiary.
Although it is important for VA to periodically audit
fiduciaries, particularly fiduciaries who receive a commission,
a comprehensive annual reporting requirement may place a burden
on volunteer fiduciaries. This burden may be particularly
onerous if the fiduciary is also serving as the veteran's
caregiver. Caregivers are often loving family members, who are
making tremendous sacrifices to ensure the care and comfort of
the veteran. Furthermore, many caregivers are already being
supervised by the VHA under the Caregivers and Veterans Omnibus
Health Services Act of 2010\7\ (Caregivers Act). Fiduciaries
who also receive VA assistance are subject to periodic home
visits by VHA employees to assess the welfare of the veteran.
If the VHA home visits reveal that the veteran is not receiving
proper care, VHA may terminate caregiver support. Therefore,
requiring caregivers to provide a detailed annual accounting
would be an unnecessary burden and would not provide additional
protections for the beneficiary.
---------------------------------------------------------------------------
\7\P.L. 111-163 (May 5, 2010)
---------------------------------------------------------------------------
Section 10. Board of Veterans' Appeals video hearings
Although a hearing is not required in order for the Board
of Veterans' Appeals (Board) to issue a final decision in a
veteran's appeal, a veteran is entitled to a hearing upon
request. In FY 2014, the Board held almost 11,000 hearings.
Many of these hearings were conducted at the Board offices, but
Board Members also travel to VA regional benefits offices
around the country for the purpose of holding hearings in
locations more convenient for veterans. In addition, the Board
offers veterans the option of having a videoconference hearing.
During the January 22, 2015, Subcommittee on Disability
Assistance and Memorial Affairs hearing, the Board's Vice
Chairman, Laura Eskenazi, testified that there is no
statistical difference in the ultimate disposition of in-person
hearings as compared to videoconference hearings. Veterans who
had videoconference hearings had an allowance rate for their
appeals that was virtually the same as veterans who had an in-
person hearing.\8\ Furthermore, during the April 14, 2015,
Subcommittee on Disability Assistance and Memorial Affairs
hearing, VA testified that the Board has historically been able
to schedule videoconference hearings more quickly than in-
person hearings. For example, in FY 2014, on average,
videoconference hearings were held 124 days sooner than in-
person hearings.
---------------------------------------------------------------------------
\8\Eskenazi testimony, op. cit.
---------------------------------------------------------------------------
Section 10 would permit the Board to schedule the earliest
possible hearing for the appellant, which may be a
videoconference hearing. This provision, however, would
preserve the right of the appellant to request a different type
of hearing, such as a hearing at the Board offices in
Washington, D.C., or a hearing by a Board Member held at the
appellant's local regional office.
Section 10 would encourage the additional use of
videoconferencing at the Board for the purpose of expediting
the scheduling of appeals hearings. This Section would also
improve efficiencies at the Board by reducing time lost due to
the Veterans Law Judges having to travel to regional benefits
offices to conduct in-person hearings.
Section 11. Improvements to authority for performance of medical
disabilities examinations by contract physicians
Some veterans are afforded a VA medical examination to
evaluate their application for disability benefits.
Unfortunately, there are not enough VA examiners to perform
these evaluations in a timely manner, and some veterans
experience lengthy delays before VA is able to schedule such
examinations. It may be especially difficult for VA to timely
schedule these examinations if the veteran needs to see a
specialist, such as a cardiologist or orthopedic surgeon.
Moreover, veterans who live in rural areas may have to travel
for miles to a VA facility in order to see a VA examiner for a
disability examination.
During the July 29, 2015, Subcommittee on Disability
Assistance and Memorial Affairs hearing, VA testified that
enabling licensed physicians operating under a VA contract to
conduct more examinations would allow VA doctors to devote more
time to treating veterans, rather than conducting disability
examinations. In 2003, Congress gave VA temporary authority to
contract with non-VA physicians to perform disability
examinations. However, such authorization expires on December
31, 2016.
Section 11 would extend VA's authority to contract with
non-VA physicians to conduct disability examinations through
December 31, 2017. This Section would also revise provisions of
the Veterans Benefits Act of 2003 and the Veterans' Benefits
Improvement Act of 1996 relating to contract examinations.
Section 11 would clarify that, notwithstanding any law
regarding the licensure of physicians, a physician who has a
current unrestricted license would be authorized to conduct
disability examinations for VA in any state, the District of
Columbia, or a commonwealth, territory, or possession of the
United States. However, this authorization would only extend to
physicians conducting an examination within the scope of the
physician's authorized duties under a contract with VA.
Furthermore, VA would only be able to contract with physicians
who are not barred from conducting such an examination in any
state, the District of Columbia, or a commonwealth, territory,
or possession of the United States.
Moreover, the Committee is concerned about a news report
indicating that some veterans have been referred to a physician
who was under criminal investigation and practicing medicine
with a restricted license.\9\ A restricted license limits a
physician's practice, generally because the physician has a
health problem or is being disciplined for professional
misconduct. Section 11 would ensure that VA would not be able
to contract with any physician who is practicing medicine with
a restricted license.
---------------------------------------------------------------------------
\9\Ryan, Patty, ``VA Contractor Sent Patients to Tampa Doctor as
Prosecutors Tried to Send Him to Prison, Tampa Bay Times, August 22,
2015.
---------------------------------------------------------------------------
It would benefit veterans to extend VA's temporary
authority to contract with private physicians to conduct
disability examinations. However, VA should only contract with
physicians who have current unrestricted licenses and are not
barred from conducting medical examinations within the United
States or its territories.
Section 12. Pilot program on fully developed appeals
Under the current VA appeals system, a veteran who
disagrees with VA's decision with respect to his or her claim
for benefits may file a Notice of Disagreement (NOD). The VA
regional benefits office then determines whether additional
development is needed and, if so, undertakes that development
and provides the veteran with a statement of the case (SOC).
The SOC includes a summary of the evidence considered, a
summary of the applicable laws and regulations, and a
discussion of how such laws and regulations affect VA's
decision. The veteran may then file a substantive appeal via a
VA Form 9, and is permitted to submit additional evidence to
support his or her appeal. Each time the veteran submits new
information, the regional benefits office will generally issue
a new decision or supplemental statement of the case (SSOC).
The requirement that VA issue a SSOC every time new
evidence is submitted increases the wait time for veterans. In
FY 2014, the average time between the date a veteran filed an
NOD and the issuance of an SOC was 330 days. The time from
issuance of an SOC to filing of a substantive appeal averaged
39 days. The period between the filing of a substantive appeal
and certification of an appeal to the Board was 681 days.\10\
---------------------------------------------------------------------------
\10\McLenachen testimony, op. cit., April 14, 2015.
---------------------------------------------------------------------------
To determine whether the fully developed appeals (FDA)
process would help expedite VA's appeals process, Section 12
would create a five-year FDA pilot program. This Section would
require VA to provide the claimant with information about the
pilot program, including the limitation on providing new
evidence after filing an appeal and the advantages and
disadvantages of participating in the program. Further, VA
would be required to collaborate with veterans service
organizations to publish an online tutorial explaining the
advantages and disadvantages of the pilot program.
Under Section 12, a claimant who elects to participate in
the pilot program would file a NOD, along with a written
election to have the appeal determined under the pilot program.
At the time of filing the NOD, the claimant would submit all
evidence that the claimant believes is needed for the appeal,
as of the date of filing, and a statement of argument, if any,
in support of the claim. Furthermore, the claimant's
representative of record, if any, would have the opportunity to
review the claimant's FDA and submit any additional arguments
or evidence that the representative determines necessary. After
the claimant elects to file a FDA, jurisdiction over the appeal
would transfer to the Board.
Section 12 would allow a veteran to revert to the
traditional appeals process at any time after making an FDA
election, with no penalty other than the time lost whereby the
appeal may have been reviewed under the traditional appeals
process. If the claimant decides to submit new evidence, the
claimant would be required to revert to the traditional appeals
process. Additionally, if the claimant requests to hold a
hearing, such request would be deemed to be an election to
revert to the standard appeals process.
Upon the election of a claimant to file a FDA, the
jurisdiction of the appeal would transfer directly to the
Board. The Board would maintain FDA on a separate docket than
the standard appeals docket. The Board would also be directed
to decide FDAs in the order they are received, however, the
Board would not decide more than one FDA for each four
traditional appeals decided. Finally, to the extent
practicable, Section 12 would require that the Board decide
each FDA within one year of the date on which the claimant
files the NOD.
In addition, Section 12 would require the Board to
establish an office to develop any evidence the Board
determines necessary to decide a FDA. VA would be required to
cooperate with the Board in developing evidence. Furthermore,
VA would be required to transfer employees who were responsible
for processing remanded cases to positions within the Board in
a number VA determines sufficient to carry out this section.
Section 12 would, in cases where the Board determines that
a FDA requires additional evidence, direct the Board to take
such action as may be necessary to develop such new evidence
without remanding the case to the VBA. The Board would consider
such evidence in the first instance without consideration by
the VBA. Moreover, the claimant or the representative of the
claimant, if any, would have the opportunity to review a copy
of such new evidence and is able to respond within 90 days
after the date of mailing such evidence, without requiring the
claimant to make a reversion to the traditional appeals
process.
Section 12 would also require VA to provide an annual
report that would include recommendations for changes to
improve the pilot program and an assessment of the feasibility
and advisability of expanding the pilot program. Such annual
reports would begin 180 days after the date on which the pilot
program commences.
VA's current rating notification letters fail to clearly
explain the rationale for its conclusions. If veterans better
understood why VA denied their initial claim, the number of
appeals may be reduced. More complete and clear decision
letters would provide veterans and their representatives with a
better understanding of what is needed to prevail in their
appeal, regardless of which option they choose. To ensure VA
works cooperatively with VSOs to develop a better, more
understandable rating notification letter, this Section would
require the annual report to include a review, made in
conjunction with VSOs, of VA's efforts to improve disability
rating notification letters. Moreover, the report would include
the opinions of the VSOs regarding VA's efforts to provide
clear notification letters. Finally, section 12 would require
VA to publish interim guidance on the pilot program not later
than one day after the date of enactment and would require VA
to prescribe regulations to carry out such pilot program not
later than 90 days after enactment.
Section 13. Deadline for certification of appeals forms by regional
offices of the Department of Veterans Affairs
After a veteran files a substantive appeal, VA employees
are required to review the claims file to ensure that all
administrative and adjudicative procedures have been completed
before the appeal is certified to the Board. The purpose of the
review is to avoid unnecessary remands by ensuring that all
issues have been addressed before certification to the Board.
Despite the fact that this review is simply an administrative
procedure, it currently takes 681 days on average for VA to
complete the process of certifying an appeal to the Board.\11\
---------------------------------------------------------------------------
\11\Ibid.
---------------------------------------------------------------------------
During the June 24, 2015, Subcommittee on Disability
Assistance and Memorial Affairs hearing, The American Legion
and the Iraq and Afghanistan Veterans of America testified in
support of the provisions of Section 13, which would require VA
to complete the certification process within one year.
Section 14. Evaluation of backlog of disability claims and appeals of
claims of Department of Veterans Affairs
Section 14 would establish a commission or task force to
provide a comprehensive evaluation and assessment of the
backlog of VA disability claims, as well as the lesser noted
backlog of appeals of initial decisions, an analysis of
possible improvements to VA disability claims processing, and
any related issues that the commission or task force considers
relevant. This Section would require VA to submit interim and
final reports to Congress within 180 days of commencement of
work.
The VA disability compensation program provides monetary
support to veterans with disabling conditions that were
incurred or aggravated during military service. In FY 2015, the
program provided approximately $63.7 billion in disability
compensation benefits to nearly 4.1 million veterans. For
years, the disability compensation claims process has been the
subject of concern and attention by VA, Congress, and VSOs, due
in large part to long waits for decisions and the large number
of claims pending a decision. Against this backdrop, thousands
of servicemembers are expected to become veterans in the coming
years according to VA officials, with a significant number
expected to apply for disability benefits.
VA has installed sweeping technological changes in recent
years, and has implemented various initiatives under its
Strategic Plan. However, VA has also layered new initiative
upon new initiative, including short-notice mandatory overtime,
focused deadlines for claims dated in excess of one year, and
alteration of the VA tracking and reporting figures of
backlogged claims in its Monday Morning Workload Report. In
December 2012, the GAO issued a report entitled, ``Veterans'
Disability Benefits: Challenges to Timely Processing Remains a
Daunting Challenge'' that reviewed VA's disability adjudication
process. The GAO noted that, although VA is attempting to
address processing challenges through various improvement
initiatives, without a comprehensive plan to strategically
manage resources and evaluate the effectiveness of these
efforts, the agency risks spending limited resources on
initiatives that may not speed up the disability claims and
appeals processes. This may, in turn, result in forcing
veterans to continue to wait months and even years to receive
compensation for injuries incurred during their service to the
country.\12\
---------------------------------------------------------------------------
\12\U.S. Government Accountability Office, Veterans' Disability
Benefits: Challenges to Timely Processing Remains a Daunting Challenge
(GAO-13-89) (December 2012).
---------------------------------------------------------------------------
Furthermore, numerous recent reports from VA OIG
demonstrate that VA regional offices across the nation continue
to lack effective controls and accuracy in processing
disability claims, fail to adequately interpret policy
requirements, lack effective training, and further lack proper
managerial oversight. While VA has set concrete goals for
processing times and reduction of backlogged veterans'
disability compensation claims, it is evident that more must be
done to ensure that VA implements a workload management
strategy that will not only eliminate the current backlog, but
will also improve the system in a holistic manner, provide
capacity for anticipated and unanticipated surges, ensure
accurate processing of claims, and prevent future backlog
occurrences.
The need for legislation establishing a commission or task
force has been highlighted before the Committee by independent
subject matter expert academics, organizations who advocate on
behalf of veterans, and by the CAVC. An outside analysis is
necessary to clearly identify, first, why the backlog exists,
and second, how to prevent this situation from recurring,
whether by amendment to law, regulation, policy, or process.
The commission or task force created by this Section would
augment and support VA's ongoing work, contribute added value
to VA's efforts, report on its findings early and often, and
increase transparency throughout the process. Additionally,
while much focus is placed upon the backlog of veterans'
disability benefit claims, a commensurate focus upon the
backlog of veterans' appealed claims does not exist. With a
current caseload of more than 420,000 appeals and a projected
workload of hundreds of thousands of appealed claims in the
coming years, the appeals system must also be considered with
thoughtful analysis, evaluation, and recommendations for
improvement.
Section 15. Methods for validating certain World War II Merchant
Mariner service considered to be active service by the
Secretary of Veterans Affairs
Historically, merchant mariners were private citizens
employed by freight shipping companies. In an effort to support
the American war effort during World War II, these freight
shipping companies and their employees became an auxiliary to
the United States Navy. Their mission was to transport bulk war
materials including food, clothing, weapons, and even troops to
all areas of conflict and coastal installations here at home.
Currently, a certificate of shipping and discharge forms,
continuous deck or engine logbooks, and shipping company
records that indicate the vessel names and dates of voyages are
the only documents that are considered acceptable to determine
an individual's service in the merchant marine. Unfortunately,
such documentation may no longer exist or can be difficult to
find.
Section 15 would expand the official documentation accepted
by the Secretary of Homeland Security to grant veterans status
with limited benefits to World War II merchant marine and
coastwise merchant seamen. This Section would expand the
acceptable forms of documentation used to determine eligible
service in the merchant marine, and would allow acceptance of
Social Security Administration records, validated testimony by
the applicant or closest living relative, and other official
records that provide sufficient proof of service. The limited
benefits that would be conferred by Section 15 include burial
benefits and the awarding of any commendations, ribbons, or
honors earned during an individual's time of service.
Section 16. Designation of American World War II Cities
Section 16 would mandate that the VA Secretary designate
one city in the United States each year as an ``American World
War II City'' based on a set of criteria that includes:
contributions to the war effort, efforts to preserve the
history of the city's contributions, and the presence of
military facilities within the city. The Committee believes
that American cities provided critical and distinguished
contributions to the World War II effort and should be honored
and celebrated accordingly. This Section would set in place a
procedure for other cities to receive this designation.
Section 17. Sense of Congress Regarding American Veterans Disabled for
Life
There are 3.6 million veterans of the United States Armed
Forces living today that are recognized by the VA to be
service-disabled veterans. These American heroes carry the
lasting scars of their service to our nation throughout their
lives.
In recognition of these veterans, Congress approved
construction of the American Veterans Disabled For Life
Memorial, located in Washington, DC, which was dedicated on
October 5, 2014 to serve as a permanent reminder of the
enduring human sacrifices of war. Section 17 would express the
sense of Congress that our nation honors the service and
sacrifice made by the men and women left permanently wounded,
ill, or injured as a result of their service in the United
States Armed Forces.
Hearings
On January 27, 2015, the full Committee conducted a
legislative hearing on various bills introduced during the
114th Congress, including H.R. 245.
The following witnesses testified:
The Honorable Alan Grayson, U.S. House of
Representatives; Mr. David R. McLenachen, Acting Deputy
Under Secretary for Disability Assistance, Veterans
Benefits Administration, U.S. Department of Veterans
Affairs; Mr. Zachary Hearn, Deputy Director for Claims,
Veterans Affairs and Rehabilitation Division, The
American Legion; Mr. Joseph A. Violante, National
Legislative Director, Disabled American Veterans; Mr.
Blake C. Ortner, Deputy Government Relations Director,
Paralyzed Veterans of America; and, Mr. Aleks Morosky,
Deputy Director, National Legislative Service, Veterans
of Foreign Wars.
Statements for the record were submitted by the following:
Vietnam Veterans of America and the Housing Policy
Council.
On April 14, 2015, the Subcommittee on Disability
Assistance and Memorial Affairs conducted a legislative hearing
on various bills introduced during the 114th Congress,
including H.R. 677, H.R. 800, H.R. 1331, and H.R. 1379.
The following witnesses testified:
The Honorable Chellie Pingree, U.S. House of
Representatives; Mr. David R. McLenachen, Acting Deputy
Under Secretary for Disability Assistance, Veterans
Benefits Administration, U.S. Department of Veterans
Affairs; Mr. Zachary Hearn, Deputy Director for Claims,
Veterans Affairs and Rehabilitation Division, The
American Legion; Mr. Blake C. Ortner, Deputy Government
Relations Director, Paralyzed Veterans of America; Mr.
Paul R. Varela, Assistant National Legislative
Director, Disabled American Veterans; Mr. Ronald B.
Abrams, Joint Executive Director, National Veterans
Legal Services Program; and, Mr. Kenneth M. Carpenter,
Founding Member, National Organization of Veterans'
Advocates.
Statements for the record were submitted by the following:
The Veterans of Foreign Wars and the U.S. Court of
Appeals for Veterans Claims.
On June 24, 2015, the Subcommittee on Disability Assistance
and Memorial Affairs conducted a legislative hearing on various
bills introduced during the 114th Congress, including H.R.
1302, H.R. 1338, H.R. 1380, H.R. 2214, H.R. 2605, and, H.R.
2691.
The following witnesses testified:
The Honorable Bill Johnson, U.S. House of
Representatives; Mr. David R. McLenachen, Acting Deputy
Under Secretary for Disability Assistance, Veterans
Benefits Administration, U.S. Department of Veterans
Affairs; Mr. Zachary Hearn, Deputy Director for Claims,
Veterans Affairs and Rehabilitation Division, The
American Legion; Mr. Paul R. Varela, Assistant National
Legislative Director, Disabled American Veterans; Mr.
Aleks Morosky, Deputy Director, National Legislative
Service, Veterans of Foreign Wars; Ms. Diane Zumatto,
National Legislative Director, AMVETS; and, Mr. Chris
Neiweem, Legislative Associate, Iraq and Afghanistan
Veterans of America.
Statements for the record were submitted by the following:
The Honorable Bob Latta, U.S. House of
Representatives; the Honorable Bill Shuster, U.S. House
of Representatives; and, the Paralyzed Veterans of
America.
Subcommittee Consideration
On May 14, 2015, the Subcommittee on Disability Assistance
and Memorial Affairs met in open markup session, a quorum being
present, and favorably forwarded to the full Committee H.R.
732, as amended, and, H.R. 1331. During consideration of H.R.
732, the following amendment was considered and agreed to by
voice vote:
An amendment offered by Mr. Ruiz of California that
retained the original language regarding appeals
hearings, and includes additional language that would
provide priority for processing claims for certain
veterans. The amended version would establish a
commission or task force to evaluate and assess the
backlog of VA disability claims and the backlog of
appealed claims. The commission or task force would
provide regular reports to the President and Congress.
On July 9, 2015, the Subcommittee on Disability Assistance
and Memorial Affairs met in open markup session, a quorum being
present, and favorably forwarded to the full Committee H.R.
800, as amended; H.R. 1380, as amended; H.R. 2214, as amended;
H.R. 2605, as amended; H.R. 1302; H.R. 1338; and, H.R. 2691.
During consideration of H.R. 800, the following amendment
in the nature of a substitute was considered and agreed to by
voice vote:
An amendment in the nature of a substitute offered by
Ms. Titus of Nevada that retained the original language
regarding the five-year fully developed appeals (FDA)
pilot program. The amendment in the nature of a
substitute eliminated the provision that would have
allowed a claimant who had already filed a traditional
appeal to transfer to the pilot program. The amendment
in the nature of a substitute would require that: (1)
the Secretary provide the claimant and claimant's
representative, if any, information regarding the
advantages and disadvantages of the pilot program,
including the limitation on the use of new evidence;
(2) VA collaborate with the three veterans service
organizations with the most members in developing and
publishing an online tutorial explaining the advantages
and disadvantages of the pilot program; and, (3) the
Secretary prescribe regulations to carry out such pilot
program not later than 90 days after the date of
enactment. Further, the amendment in the nature of a
substitute would clarify that (1) participants in the
pilot program may seek advice from claims agents
recognized under chapter 59 of Title 38, U.S.C.; (2)
claimants who are not eligible to participate in the
pilot program would be allowed to revert to the
standard appeals process without any penalty to the
claimant other than the loss of the docket number
associated with the FDA; the Board would consider newly
developed evidence in the first instance without prior
consideration by the Veterans Benefits Administration;
(3) if the claimant requests a hearing, such request
would be deemed to be an election to revert to the
standard appeals process; (4) the Secretary would
transfer employees of the VBA who were responsible for
processing claims remanded by the Board to positions
within the office of the Board. Finally, the amendment
in the nature of a substitute would require that the
claimant and the claimant's representative of record
receive a copy of any new evidence developed by the
Board. The claimant would have 45 days to respond to
such evidence. The amendment in the nature of a
substitute would clarify that responding to such
evidence would not cause the case to revert to the
standard appeals process.
During consideration of H.R. 1380, the following amendment
in the nature of a substitute was considered and agreed to by
voice vote:
An amendment in the nature of a substitute offered by
Mr. Abraham of Louisiana that retained the original
language that would authorize VA to furnish a medallion
to signify the veterans status of a deceased individual
in certain cases. However, the amendment in the nature
of a substitute modified the original text to limit
eligibility for such medallions to persons who served
in the Armed Forces on or after April 6, 1917.
During consideration of H.R. 2214, the following amendment
was considered and agreed to by voice vote:
An amendment offered by Mr. Abraham of Louisiana that
retained the original language extending VA's authority
to contract with private physicians to conduct
disability examinations until December 31, 2017. The
amendment removed the limit on the number of VA
regional offices through which the Secretary is
authorized to carry out the pilot program. The
amendment also removed the provision that required the
Secretary to conduct an annual data analysis of the
regional offices participating in the pilot program.
During consideration of H.R. 2605, the following amendment
was considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by
Mr. Abraham of Louisiana that incorporated the text of
H.R. 2605, but removed the provision authorizing the
appointment of a temporary fiduciary under certain
conditions.
Committee Consideration
On September 17, 2015, the full Committee met in open
markup session, a quorum being present, and ordered H.R. 677,
as amended, reported favorably to the House of Representatives
by voice vote. During consideration of the bill, the following
amendments were considered:
An amendment offered by Mr. Abraham of Louisiana that
would (1) expand the eligibility for medallions
signifying veteran status that adorn a privately
purchased headstone or marker; (2) codify the meaning
of certain terms; (3) require VA to submit quarterly
reports with respect to claims processing, and express
the sense of Congress that VA should streamline the
application process for certain claims; (4) expedite
payment of survivor's benefits; (5) provide priority of
processing claims for certain veterans; (6) provide
guidelines for the treatment of medical evidence
provided by non-VA medical professionals in support of
claims for disability compensation; (7) require that,
whenever there is an increase in benefit amounts
payable under title II (Old Age, Survivors and
Disability Insurance) of the Social Security Act, VA
would increase by the same percentage the amounts
payable as veterans' disability compensation,
additional compensation for dependents, the clothing
allowance for certain disabled adult children, and
dependency and indemnity compensation for surviving
spouses and children; (8) improve VA's fiduciary
program; (9) require the Board of Veterans' Appeals,
for purposes of scheduling a veteran's appeals hearing
at the earliest possible date, to determine whether to
provide such hearing at the principal location or
another VA facility or other federal facility or
through the use of videoconferencing or by an
appellant's personal appearance; (10) improve the
authority for performance of medical disabilities
examinations by contract physicians; (11) establish a
pilot program on fully developed appeals; (12) direct
VA to certify an appeal to the Board of Veterans'
Appeals within one year after receiving an appeal form;
(13) establish a commission or task force to evaluate
and assess the backlog of VA disability claims and the
backlog of appealed claims; (14) expand the acceptable
forms of documentation used to determine eligible
service in the merchant marine and provides for certain
limited burial benefits; (15) designate certain cities
as American World War II cities; and, (16) express the
sense of Congress honoring American veterans disabled
for life, was agreed to by voice vote.
An amendment to the Amendment in the Nature of a
Substitute to H.R. 677 was offered by Ms. Titus of
Nevada to revise the definition of marriage under title
38 United States Code and was rejected by a record vote
of 12 nays and 10 yeas with 1 present and 1 absent
(Record vote no. 1).
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report the legislation and amendments thereto.
The following reflects the record vote taken during the
Committee consideration:
An amendment to the Amendment in the Nature of a
Substitute to H.R. 677 was offered by Ms. Titus of
Nevada to revise the definition of marriage under Title
38 United States Code. This amendment was defeated by a
record vote of 10 yeas and 12 nays, with one member
voting present, and one member not voting (Record vote
no. 1). The names of the members voting for and against
follow.
A motion by Ranking Member Corrine Brown of Florida to
report H.R. 677, as amended, favorably to the House of
Representatives was offered and adopted by the Full Committee
by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee establishes the
following performance related goals and objectives for this
legislation:
The Secretary of VA will use the authority granted by
this legislation to improve VA's claims and appeals
procedures; ensure veterans' benefits keep pace with
inflation; better protect beneficiaries who are in the
fiduciary program; recognize and honor members of the
merchant marine who served during World War II; and,
help ensure that our nation remembers and honors the
service and sacrifice of certain deceased veterans,
veterans disabled for life, and cities who served our
nation during World War II. Specifically, the
legislation would expand the eligibility for a
medallions signifying veteran status that would adorn a
privately purchased headstone or marker; expedite and
improve VA's claims processing and appeals processing;
provide for an automatic COLA for veterans' benefits;
improve VA's fiduciary program; expand the official
documentation accepted by the Secretary of Homeland
Security to grant veteran status with limited benefits
to World War II merchant marine and coastwise merchant
seamen; designate certain cities as American World War
II cities; and express the sense of Congress honoring
American veterans disabled for life.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 677, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
677, as amended, prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 677, as amended, provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, January 22, 2016.
Hon. Jeff Miller,
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. 677, the American
Heroes COLA Act of 2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Dwayne M.
Wright.
Sincerely,
Keith Hall.
Enclosure.
H.R. 677--American Heroes COLA Act of 2015
Summary: H.R. 677 would modify several mandatory programs
administered by the Department of Veterans Affairs (VA),
including disability compensation and burial benefits. H.R. 677
also would provide a permanent annual cost-of-living adjustment
(COLA) to the amounts paid to veterans for disability
compensation and to their survivors for dependency and
indemnity compensation. That provision would increase direct
spending for veterans' benefits by $72.7 billion over the 2016-
2025 period. However, because the COLA is assumed in CBO's
baseline pursuant to section 257 of the Balanced Budget and
Emergency Deficit Control Act, enacting that provision would
have no budgetary effect relative to that baseline.
CBO estimates that the other provisions of H.R. 677,
including a requirement that the increases resulting from the
COLA be rounded down to the next whole dollar, would increase
net direct spending by $5.8 billion over the 2016-2025 period
relative to CBO's baseline. Because the bill would affect
direct spending, pay-as-you-go procedures would apply. Enacting
H.R. 677 would not affect revenues.
In addition, the bill would change the administration of
VA's fiduciary program and several other programs in ways that
would require an increase in the number of VA employees. CBO
estimates that implementing those changes would cost $176
million over the 2016-2020 period, assuming appropriation of
the estimated amounts.
CBO estimates that enacting the legislation would increase
net direct spending and on-budget deficits by more than $5
billion in each of the four consecutive 10-year periods
beginning in 2026.
H.R. 677 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 677 is shown in Table 1. The costs of
this legislation fall within budget function 700 (veterans
benefits and services).
TABLE 1--ESTIMATED BUDGETARY EFFECTS OF H.R. 677
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2016 2017 2018 2019 2020 2016-2020
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority.............................. -24 -30 13 104 258 321
Estimated Outlays....................................... -24 -30 13 104 258 321
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................... * 45 47 41 42 176
Estimated Outlays....................................... * 45 47 41 42 176
----------------------------------------------------------------------------------------------------------------
Notes: In addition to the direct spending effects shown here, enacting H.R. 677 would affect direct spending
beyond 2020 (see Table 2). CBO estimates that total direct spending would increase by $5.8 billion over the
2016-2025 period.
Components may not sum to totals because of rounding; * = less than $500,000.
Basis of estimate: For the purposes of this estimate, CBO
assumes the legislation will be enacted early in calendar year
2016, that the necessary amounts will be appropriated each
year, and that outlays will follow historical spending patterns
for similar and existing programs.
Direct spending
H.R. 677 would modify veterans' compensation, pension, and
burial benefits. In total, CBO estimates that enacting the
legislation would, on net, increase direct spending for those
programs by $5.8 billion over the 2016-2025 period (see Table
2).
TABLE 2--IMPACT OF H.R. 677 ON DIRECT SPENDING
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016-2020 2016-2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Use of Non-VA Medical Opinions in Claims for Disability
Compensation:
Estimated Budget Authority.............................. 0 23 93 216 404 678 1,016 1,364 1,695 2,009 736 7,498
Estimated Outlays....................................... 0 23 93 216 404 678 1,016 1,364 1,695 2,009 736 7,498
Annual COLA:
Estimated Budget Authority.............................. -24 -53 -81 -113 -147 -181 -219 -255 -288 -326 -418 -1,687
Estimated Outlays....................................... -24 -53 -81 -113 -147 -181 -219 -255 -288 -326 -418 -1,687
Expansion of Eligibility for Medallions:
Estimated Budget Authority.............................. * * 1 1 1 1 1 1 1 1 3 5
Estimated Outlays....................................... * * 1 1 1 1 1 1 1 1 3 5
Benefits for Coastwise Merchant Mariners:
Estimated Budget Authority.............................. * * * * * * * * * * * 1
Estimated Outlays....................................... * * * * * * * * * * * 1
Total Changes in Direct Spending:
Estimated Budget Authority.......................... -24 -30 13 104 258 498 798 1,110 1,408 1,684 321 5,817
Estimated Outlays................................... -24 -30 13 104 258 498 798 1,110 1,408 1,684 321 5,817
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding; COLA = cost-of-living adjustment; * = less than $500,000.
Use of Non-VA Medical Opinions in Claims for Disability
Compensation. Section 7 would prohibit VA from conducting its
own medical examination in cases where a veteran submits a
private medical opinion in support of a claim for disability
compensation unless VA can substantiate why the private medical
opinion is insufficient to decide the claim. Currently, VA
almost always conducts its own medical exams even if veterans
submit private medical opinions. Section 7 would take effect
one year from the date of enactment of the bill.
CBO expects that allowing veterans to choose the physician
that would provide the deciding medical opinion on whether a
veteran is disabled and whether that disability could be traced
to their time in service would lead to significantly more
veterans receiving disability ratings and to higher levels of
disability ratings. Furthermore, we expect that effect would
increase over time as private doctors gained experience with
the VA system. Medical literature shows that doctors who have
an established relationship with a patient tend to provide more
favorable reports for those patients than doctors who are
seeing the patient for the first time, as is the case with a
VA-ordered examination.\1\ Furthermore, veterans would be able
to visit multiple doctors in order to gain the most favorable
medical report.
---------------------------------------------------------------------------
\1\Simen Markussen, Knut Roed*, Ole Rogeberg, ``The changing of the
guards: Can family doctors contain worker absenteeism?'', Journal of
Health Economics, vol 32 (2013), pp. 1230-1239, http://dx.doi.org/
10.1016/j.jhealeco.2013.10.005.
---------------------------------------------------------------------------
CBO expects that the majority of claims for disability
where a private medical exam would make a difference are those
for subjective disabilities (i.e., mental disorders, nerve
disorders, and back pain) or disabilities for which different
examiners are more likely to provide different conclusions.
Over time, CBO anticipates that the percentage of veterans
submitting private medical opinions would increase. In CBO's
analysis, enacting section 7 would:
Increase the average amount of disability
compensation for veterans who currently receive
compensation, as those veterans can request a
reevaluation at any time and would be more likely to do
so under the bill;
Increase the average amount of disability
compensation paid to veterans newly awarded a
disability compensation rating; and
Increase the number of veterans who receive
compensation by enabling some of those who would be
denied benefits under current law to be awarded a
disability rating.
In total, CBO estimates that enacting section 7 would
result in about 360,000 more veterans receiving an additional
$7.5 billion in disability compensation over the 2016-2025
period.
Current Beneficiaries. On average, about 15 percent of
veterans currently receiving disability compensation come to VA
to be reevaluated every year. In recent years, current
beneficiaries have had their disability ratings increased by an
average of 10 percentage points as a result of those
reevaluations. CBO estimates that under current law about 4.1
million veterans will be receiving disability compensation in
2017, and that 653,000 will return to VA to be reevaluated.
Based on information from VA, CBO estimates that about 40
percent of rated disabilities fall into the subjective
category. Under section 7, CBO expects about 60 percent of the
reevaluations (increasing to 75 percent by 2025) would involve
a private medical opinion. Based on a review of existing
literature, CBO expects that the average disability rating
would increase by 10 percentage points for 10 percent of the
claims reevaluated in 2017 (increasing to 30 percent of such
claims in 2021 and thereafter).\2\ Thus, about 8,200 veterans
currently on the rolls in 2017 (about 49,000 in 2025) would
receive an increase of 10 percentage points in their disability
rating. The average disability rating for a veteran who has
been reevaluated is 50 percent; increasing that rating to 60
percent would represent an annual benefit increase of $4,900 in
2017 (increasing to $5,900 in 2025). After accounting for
inflation and mortality, CBO estimates that enacting section 7
would increase direct spending for veterans currently on the
rolls by $6.9 billion over the 2016-2025 period.
---------------------------------------------------------------------------
\2\Helge Liebert, Medical Screening and Moral Hazard in Disability
Insurance: Evidence from Switzerland (Center for Disability and
Integration, School of Economics and Political Science, University of
St. Gallen, 2014) http://www.hha.dk/nat/larss/CAFE2014/HLiebert.pdf.
---------------------------------------------------------------------------
Annual Accessions. Over the 2012-2014 period, the VA
disability compensation program added an average of 290,000 new
beneficiaries per year. As with current beneficiaries, CBO
estimates that about 40 percent of rated disabilities for those
new accessions fall into the subjective category. Under section
7, CBO expects that those veterans who did not file a claim
immediately after being discharged from military service would
provide private medical opinions and receive increased
disability ratings at the same rates and with the same
incremental increase as current beneficiaries. CBO expects that
veterans who apply to VA immediately after being discharged
from military service would be much less likely than other
veterans to obtain private medical opinions, but those that do
would see the same increases as other new accessions. Thus, we
estimate that 15 percent (increasing to 25 percent by 2025) of
newly discharged veterans would submit a private medical
opinion. On that basis, CBO estimates that about 1,700 veterans
in 2017 (increasing to about 6,200 veterans in 2025) would
receive a 10 percentage point increase in their disability
rating (from an average of 40 percent to 50 percent). That
would amount to an average annual increase of about $3,200 in
2017 (increasing to about $3,900 in 2025). After accounting for
inflation and mortality, CBO estimates that enacting section 7
would increase direct spending for new accessions by $525
million over the 2016-2025 period.
Newly Eligible Applicants. On average, VA denies about 20
percent of all claims for disability compensation. Under
section 7, CBO expects that some veterans who would otherwise
be denied would receive a disability rating because of their
use of private medical opinions. Based on the number of new
accessions per year and similar rates of subjective
disabilities, use of private medical opinions, and award rates,
CBO estimates that about 630 veterans who will be denied under
current law would under the bill receive a disability rating in
2017, increasing to 1,725 by 2025. CBO estimates that this
cohort would receive an average rating of 10 percent (about
$1,630 annually in 2017). After accounting for inflation and
mortality, CBO estimates that section 7 would increase direct
spending for veterans who would be denied a disability rating
under current law by $87 million over the 2015-2026 period.
Annual COLA. Section 8 would provide a permanent annual
cost-of-living adjustment to the amounts paid to veterans for
disability compensation and to their survivors for dependency
and indemnity compensation. The COLA would equal the cost-of-
living adjustment payable to Social Security recipients and
would take effect on December 1 of each year.
The COLA that would be authorized by this bill is assumed
in CBO's baseline, pursuant to section 257 of the Balanced
Budget and Emergency Deficit Control Act. Because the COLA is
assumed in CBO's baseline, enacting this provision would have
no budgetary effect relative to that baseline (the COLA effect
assumed in the baseline over the 2016-2025 period amounts to
$72.7 billion). On October 15, 2015, the Social Security
Administration announced that the COLA for 2016 would be zero
percent, and thus have no effect on disability compensation
payments in 2016.
Section 2 also would require that increases in the monthly
rates resulting from the COLA be rounded down to the next lower
whole dollar. This provision would apply to both disability
compensation and dependency and indemnity compensation
payments. A similar requirement expired at the end of 2013. CBO
expects that, on average, this requirement would reduce each
monthly payment issued in the first year by 50 cents. In the
second year, the COLA would be applied to that reduced amount
and again rounded down by an average of 50 cents. Those savings
would continue to compound in subsequent years, with the
resultant amount rounded down again each year. Based on
information from VA, CBO projects that an average of 5.5
million veterans and survivors will receive 12 monthly payments
each year over the next decade. On that basis, CBO estimates
that this section would result in direct spending savings of
about $1.7 billion over the 2016-2025 period.
Expansion of Eligibility for Medallions. Section 2 would
allow the survivor of an eligible deceased veteran to receive a
VA-furnished medallion instead of a headstone or marker for use
in a private cemetery. Eligible veterans are those who served
in the armed forces on or after April 6, 1917. Under current
law, VA can only provide a medallion for eligible veterans
buried in private cemeteries who died on or after November 1,
1990. Based on information from VA, CBO expects about 5,400
such requests to be made per year. At a cost of about $100 per
medallion, CBO estimates that enacting section 2 would increase
direct spending by about $5 million over the 2016-2025 period.
Benefits for Coastwise Merchant Mariners. Section 15 would
extend eligibility for burial benefits and medals, ribbons, or
decorations to merchant mariners who served off of the coast of
the United States between December 7, 1941, and December 31,
1946. Based on information from VA and the U.S. Coastwise
Merchant Seamen's Association, CBO estimates that in 2016, the
survivors of roughly 100 eligible merchant mariners would apply
for a burial marker (and be eligible for an outer-burial
receptacle) and a ribbon or medallion at a cost of about $1,200
per request. CBO expects the number of applications would
decline steadily in subsequent years. Thus, CBO estimates that
section 15 would increase direct spending by about $1 million
over the 2016-2025 period.
Other Provisions. H.R. 677 contains other provisions that
would have a negligible effect on direct spending, primarily
because they would shift the timing but not the amount of
benefit payments. Specifically:
Section 5 would allow eligible survivors to
begin receiving any survivor's benefits due them before
filing a formal claim.
Section 6 would create a priority list for
processing claims for disability compensation.
Spending subject to appropriation
H.R. 677 would modify the fiduciary program for veterans
and extend a pilot program that allows VA to use contract
physicians to complete disability exams. It also would create a
pilot program for adjudicating fully developed appeals, require
an evaluation of the disability backlog, and require several
reports on various functions of VA. CBO estimates that
implementing those provisions of the bill would cost $176
million over the 2016-2020 period, assuming appropriation of
the estimated amounts (see Table 3).
TABLE 3--IMPACT OF H.R. 677 ON SPENDING SUBJECT TO APPROPRIATION
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2016 2017 2018 2019 2020 2016-2020
----------------------------------------------------------------------------------------------------------------
Fiduciary Program:
Estimated Authorization Level....................... 0 19 38 39 40 136
Estimated Outlays................................... 0 19 38 39 40 136
Disability Examinations by Contract Physicians:
Estimated Authorization Level....................... 0 22 7 0 0 29
Estimated Outlays................................... 0 22 7 0 0 29
Pilot Program on Fully Developed Appeals:
Estimated Authorization Level....................... 0 2 2 2 2 8
Estimated Outlays................................... 0 2 2 2 2 8
Evaluation of Backlog of Disability Claims:
Estimated Authorization Level....................... 0 2 0 0 0 2
Estimated Outlays................................... 0 2 0 0 0 2
Reports:
Estimated Authorization Level....................... * * * * * 1
Estimated Outlays................................... * * * * * 1
Total Changes in Discretionary Spending:
Estimated Authorization Level................... * 45 47 41 42 176
Estimated Outlays............................... * 45 47 41 42 176
----------------------------------------------------------------------------------------------------------------
Notes:Components may not sum to totals because of rounding; * = less than $500,000.
Fiduciary Program. Effective one year after the
legislation's enactment, section 9 would make significant
changes to VA's fiduciary program. That program provides or
approves fiduciaries for veterans who cannot manage their
financial affairs. The fiduciaries receive and manage the
veterans' benefits on their behalf. The provision would require
VA to:
Determine the competency of individuals
appointed as fiduciaries;
Remove certain fiduciaries deemed
incompetent and review the files of fiduciaries
appealing such decisions;
Maintain a list of state, local, or
nonprofit agencies that could perform fiduciary duties;
Require that all fiduciaries provide
pertinent accounting details for VA verification;
Update the qualifications and procedures for
certifying a fiduciary to include: visits to proposed
fiduciaries, Internet training, and criminal background
and credit checks; and
Notify veterans if a requested fiduciary is
unqualified and why, and provide veterans with a notice
of certified fiduciaries.
Section 9 also would require VA to maintain a database of
all fiduciaries and to submit a report to the Congress on the
progress of the program.
Based on information from VA, CBO estimates that the
department would need to hire 460 additional employees to carry
out the requirements of section 9 at an average cost of about
$80,000 per employee in 2016 and increasing thereafter with
inflation. We also estimate that the information technology
systems necessary to maintain the database would cost about $1
million per year. In total, CBO estimates that implementing
section 9 would cost $136 million over the 2016-2020 period.
Disability Examinations by Contract Physicians. Section 11
would extend the pilot program that allows VA to use contract
physicians to perform medical disability examinations through
December 31, 2017. Under current law, that authority will
expire on December 31, 2016. In 2015, about 36,000 exams were
completed by contract physicians under the pilot program at a
cost of about $800 per exam. Under section 11, we expect a
similar number of exams would be performed annually over the
2017-2018 period. In the absence of such authority, VA
physicians who would otherwise be providing other types of
health care to veterans will perform the exams, at no
additional cost to VA. Thus, after accounting for expected
inflation, CBO estimates that implementing section 201 would
cost $29 million over the 2017-2018 period.
Pilot Program on Fully Developed Appeals. Section 12 would
establish a pilot program within the Board of Veterans Appeals
(BVA) for veterans who wish to file a fully developed appeal
(an appeal for which no further evidence or information will be
submitted). Such appellants, upon choosing to file a notice of
disagreement with VA, could chose to file a claim using the
regular appeals process, or if they believe they have provided
all of the necessary information for the BVA to make a
decision, could elect to file under the pilot program in order
to receive a more immediate decision. Appellants could chose at
any point to revert to the standard appeals process. The pilot
program established under section 12 would run for five years,
beginning one year from the date of enactment of H.R. 677.
Section 12 would require the BVA to establish a development
unit that would provide the Board with any federal records,
independent medical opinions, and new medical exams that it
needs to decide appeals. VA would be required to transfer
certain employees from the Veterans Benefits Administration to
this new unit inside the BVA. According to VA, about 10
additional employees also would be necessary to achieve the
goals of the pilot program while not reducing the timeliness of
the current process. VA further reports that such employees
(primarily lawyers) would receive salary and benefits amounting
to about $150,000 in 2016. On that basis, and accounting for
projected inflation, CBO estimates that implementing the pilot
program would cost $8 million over the 2016-2020 period.
Evaluation of Backlog of Disability Claims. Effective one
year after the date of enactment, section 14 would establish a
commission tasked with creating a plan to eliminate the
disability claims backlog, improve the disability claims
process, and reduce the number of appeals filed for disapproved
claims. The commission would have 21 members plus a paid staff
and would exist for about seven months. The commission would be
required to submit interim reports and a final report within
180 days of the commission's first meeting. Based on the costs
of similar commissions, CBO estimates that implementing section
14 would cost about $2 million over the 2017-2018 period.
Reports. Several provisions of H.R. 677 would require VA to
submit reports to the Congress. CBO estimates that implementing
H.R. 677 would increase costs for preparing reports by $1
million over the 2016-2020 period.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown in the
following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 677 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON SEPTEMBER 17, 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016-2020 2016-2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN THE DEFICIT
Statutory Pay-As-You-Go Impact................. -24 -30 13 104 258 498 798 1,110 1,408 1,684 321 5,817
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in long term direct spending and deficits: CBO
estimates that enacting the legislation would increase net
direct spending and on-budget deficits by more than $5 billion
in each of the four consecutive 10-year periods beginning in
2026.
Intergovernmental and private-sector impact: H.R. 677
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Previous CBO estimate: On September 29, 2015, CBO
transmitted a cost estimate for S. 2082, the Department of
Veterans Affairs Expiring Authorities Act of 2015, as cleared
by the Congress on September 25, 2015. Section 409 of S. 2082
extended the authority for contract physicians to conduct
disability exams from December 31, 2015, to December 31, 2016.
Section 11 of H.R. 677 would extend the authority from December
31, 2015, to December 31, 2017. Because S. 2082 is now Public
Law 114-158, section 11 would extend the provision for one year
instead of two years. The estimated difference in costs is
reflected in this estimate.
Estimate prepared by: Federal costs: Dwayne M. Wright;
Impact on state, local, and tribal governments: Jon Sperl;
Impact on the private sector: Paige Piper-Bach.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 677, as amended, prepared by the
Director of the Congressional Budget Office pursuant to section
423 of the Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
677, as amended.
Constitutional Authority Statement
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.''
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of Section
102(b)(3) of the Congressional Accountability Act.
Statement on Duplication of Federal Programs
Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015),
the Committee finds that no provision of H.R. 677, as amended,
establishes or reauthorizes a program of the Federal Government
known to be duplicative of another Federal program, a program
that was included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139, or a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015),
the Committee estimates that H.R. 677, as amended, contains
directed rule making at sections 4, 6, and 13 which would
require the Secretary to prescribe regulations to carry out
these sections.
Section-by-Section Analysis of the Legislation
Section 1--Short title; Table of contents
Section 1(a) would establish that this Act may be cited as
the ``American Heroes COLA Act of 2015.''
Section 1(b) would contain the table of contents for this
Act.
Section 2--Expansion of eligibility for medallions
Section 2 would authorize VA to furnish, upon request, a
medallion or other device to signify a deceased individual's
status as a veteran, to be attached to a headstone or marker
furnished at private expense. To be eligible for such medallion
or other device, the deceased individual must have served in
the Armed Forces on or after April 6, 1917.
Section 3--Definitions relating to claims for benefits under laws
administered by the Secretary of Veterans Affairs
Section 3(a) would define the terms ``claimant,''
``claim,'' and ``formal claim'' and includes a clerical
amendment.
Section 3(b) would establish that the effective date of
Section 3 would be the date of enactment and would apply with
respect to a claim submitted on or after such date.
Section 4--Quarterly reports on formal and informal claims for benefits
under laws administered by Secretary of Veterans Affairs
Section 4(a) would require that VA submit to the Committees
on Veterans' Affairs of the Senate and the House of
Representatives quarterly reports on formal and informal
claims. Such report would include: (1) the total number of
claims submitted to VA; (2) the total number of informal claims
submitted to VA; (3) the total number of formal claims
submitted to VA; (4) the total number of forms indicating an
intent to file a claim for benefits submitted to VA; (5) the
total number of claims notification letters sent by VA that
included an invitation to the claimant to submit an additional
formal claim; (6) and of those, the total number who submitted
a formal claim in response to such notification letters; (6)
the total number of electronically filed claims submitted to
VA; and, (7) the total number of fully-developed claims
submitted to VA.
Section 4(b) would express the sense of Congress that the
Secretary should develop a designated form for a claim for an
increased rating or reopening of a claim that does not require
the resubmittal of information previously submitted on a formal
claim form.
Section 4(c) would define the terms ``informal claim'' and
``reasonably raised.''
Section 5--Expedited payment of survivor's benefits
Section 5(a) would authorize VA to pay benefits under
chapters 13 and 15 and sections 2302, 2307, and 5121 of title
38, U.S.C. to a survivor of a veteran who has not filed a
formal claim if VA determines that the record contains
sufficient evidence to establish the entitlement of the
survivor to such benefits. Section 5(a) would also establish
that the date on which a survivor of a veteran notifies VA of
the death of the veteran would serve as the date of receipt of
the survivor's application for benefits.
Section 5(b) would, not later than one year after the date
of enactment, require VA to submit a report to the Committees
on Veterans' Affairs of the Senate and the House of
Representatives on benefits paid pursuant to covered claims.
Section 5(c) would establish that the amendments made by
Section 5 would apply with respect to claims for benefits based
on a death occurring on or after such date.
Section 6--Priority for processing claims of the Department of Veterans
Affairs
Section 6(a) would add a new section to subchapter I of
chapter 51 of title 38, U.S.C., which would require VA to
prioritize disability benefits claims submitted by veterans who
have attained the age of 70; are terminally ill; have life-
threatening illnesses; are homeless; have received the Medal of
Honor; were prisoners of war; have claims being reviewed again
in relation to a previously denied claim relating to military
sexual trauma; and on a case-by-case basis, are seriously or
very seriously injured. Additionally, this Section allows
prioritization for good cause shown at the discretion of the
Secretary on a case-by-case basis. Section 6(a) would also
require VA to prescribe such regulations as would be necessary
to carry out this section.
Section 6(b) would provide a clerical amendment.
Section 7--Treatment of medical evidence provided by non-Department of
Veterans Affairs medical professionals in support of claims for
disability compensation
Section 7(a) would require VA to accept a sufficiently
complete medical opinion or report of a medical examination
administered by a private physician in support of the veteran's
claim. Furthermore, this Section would provide that if the
veteran submits a medical opinion or report of a medical
examination administered by a private physician in support of
the veteran's claim, the Secretary would be prohibited from
ordering a medical examination administered by VA, unless the
Secretary provides the veteran with a thorough explanation of
why the medical opinion or report submitted by the veteran was
not sufficiently complete and the reason why additional medical
evidence is necessary. Section 7(a) would also define the term
``sufficiently complete.''
Section 7(b) would establish that the effective date of
Section 7 would apply with respect to medical evidence
submitted after the date that is 90 days after the date of the
enactment.
Section 8--Automatic annual increase in rates of disability
compensation and dependency and indemnity compensation
Section 8(a) would make the cost-of-living adjustment for
veterans' disability payments automatic whenever there is an
increase in benefit amounts payable under Title II of the
Social Security Act. Section 8(a) would also require the
Secretary to publish any such increase in the Federal Register,
and would require that each dollar amount increased, if not a
whole dollar amount, be rounded to the next lower whole dollar
amount. This Section would allow the Secretary to
administratively adjust the rates of disability compensation
payable to persons under section 10 of Public Law 85-857 (72
Stat. 1263) who have not received compensation under chapter 11
of title 38, U.S.C.
Section 8(b) would establish that the effective date of
section 8 would be December 1, 2015.
Section 9--Improvement of fiduciaries for veterans
Section 9(a) would revise the process for appointment of
fiduciaries. Section 9(a) would require VA to provide a written
statement to the veteran detailing the reasons for the
appointment of a fiduciary and implement an appeals process
which would allow a veteran to challenge the finding of mental
incompetence. This Section would also allow a veteran to
predesignate a fiduciary, request the modification of an
appointed fiduciary, and establish that a fiduciary operates
independently of VA to act in the best interest of the
beneficiary.
Section 9(b) would decrease the commission appointed
fiduciaries may receive to the lesser of 3 percent of monthly
benefits or $35. It would also allow VA attorneys to appear in
a court of appropriate jurisdiction against any fiduciary who
has failed to execute the duties of a VA appointed fiduciary.
Section 9(b) would permit VA to temporarily make payments to
the person or institution having custody and control of an
incompetent or minor beneficiary. Upon the death of a
beneficiary, Section 9(b) would direct fiduciaries to pay all
remaining funds overseen by fiduciaries to any surviving
spouse, or in equal parts to any children, or in equal parts to
any dependent parents. It would also require that if a
beneficiary did not have a spouse, children, or dependent
parents and lived in a state where the beneficiary's assets
would then escheat to the state, any funds derived from VA
benefits would then escheat to the United States.
Section 9(c) would require VA to expand the definition of a
person eligible to serve as a fiduciary to include state and
local government agencies and nonprofits, and compel VA to
maintain a list of state or local agencies and nonprofit social
agencies who qualify to act as a fiduciary.
Section 9(d) would mandate that VA investigate each
fiduciary before appointment and allow VA to expedite the
investigation for certain proposed fiduciaries. The
investigation would include a face-to-face interview no more
than 30 days after the investigation begins and a background
check which would include a criminal background check and a
credit check. The background check would be performed each time
a person is proposed as a fiduciary. It would also require VA
to notify the beneficiary if a fiduciary is convicted of
certain crimes. This Section would also require VA to maintain
records of any person who previously served as a fiduciary and
any fiduciary whose status was revoked and would require each
regional office to maintain a list with the name and contact
information of each fiduciary and include pertinent information
related to each fiduciary's background investigation, bond
payment, and the amount the fiduciary controls for each
beneficiary served.
Section 9(d) would also require VA to investigate alleged
misuse of benefits, and, if substantiated, to transmit the
results of the investigation to the Attorney General and each
head of a federal department or agency that pays benefits to
fiduciaries or beneficiaries. It would also require VA to
ensure that any bond furnished by a fiduciary was not paid
using funds from the beneficiary and to consider the care a
proposed fiduciary has taken to protect the interests of the
beneficiary while also considering the capacity of the proposed
fiduciary to meet the financial requirements of the bond.
Section 9(e) would require fiduciaries to file an annual
report to include the amount of benefits the beneficiary
accrued during the year, if the fiduciary serves the
beneficiary for non-VA benefits, an accounting of all other
sources of income the fiduciary oversees for the beneficiary,
and whether the fiduciary was convicted of any crime, filed
bankruptcy, and any judgments entered against the fiduciary. It
would also require VA to perform random audits of fiduciaries
who receive a commission.
Section 9(f) would clarify that the Secretary would pay to
the beneficiary an amount equal to the amounts of benefits that
were misused in any case in which actual negligence is shown by
the Secretary not acting in accordance with section 5507 of
chapter 55, title 38, U.S.C.
Section 9(g) would mandate VA provide the Committees on
Veterans' Affairs of the Senate and the House of
Representatives a report on the implementation of the new
policies and procedures outlined in Section 9 and a discussion
on whether VA should offer fiduciaries standardized financial
software to comply with reporting requirements.
Section 9(h) would require that not later than two years
after the date of enactment, the Secretary would submit to the
Committees on Veterans' Affairs of the Senate and the House of
Representatives a report on the implementation of the
amendments made by the Act.
Section 9(i) would establish that the effective date of
Section 9 is one year after the date of enactment.
Section 10--Board of Veterans' appeals video hearings
Section 10 would require that the Board, upon request for a
hearing, determine whether such hearing will be held at the
principle location, or VA facility, or other appropriate
Federal facility. The Board would also be required to determine
whether to provide a hearing that would enable participation
through voice transmission or through picture and voice
transmission, by electronic or other means, in a hearing with a
Board member or members sitting at the Board's principle
location. However, if the appellant requests a different
location or type of hearing, the Board shall grant the
appellant's request and ensure that the hearing is scheduled at
the earliest possible date without any undue delay or other
prejudice to the appellant.
Section 11--Improvements to authority for performance of medical
disabilities examinations by contract physicians
Section 11(a) would extend until December 31, 2017, the
temporary authority to conduct examinations with respect to the
medical disabilities of applicants for benefits under laws
administered by the Secretary of VA by persons other than
employees of the Department.
Section 11(b) would authorize non-VA physicians with a
current unrestricted license to conduct medical disability
examinations in any location in any state, the District of
Columbia, or a commonwealth, territory or possession of the
United States, notwithstanding any law regarding the licensure
of physicians. However, such authority is limited to the scope
of authorized duties under such contract. Furthermore, the
authority would not authorize a physician to conduct disability
examinations if such physician is barred from conducting such
an examination in any state, the District of Columbia, or a
commonwealth, territory or possession of the United States.
Section 12--Pilot program on fully developed appeals
Section 12(a) would authorize VA to carry out a pilot
program to provide the option of an alternative appeals process
that would more quickly determine such appeals in accordance
with this Section.
Section 12(b) would allow a claimant to elect to file a
fully developed appeal (FDA). The claimant would be required to
elect to file a FDA at the time the claimant files the Notice
of Disagreement. At the time the claimant would elect to file a
FDA, the claimant would submit all evidence that the claimant
believes is needed for the appeal as of the date of filing, and
a statement of the argument in support of the claim, if any.
Section 12(b) would clarify that the claimant may elect to
revert to the standard appeals process at any time, but such
reversion would be final. Furthermore, a claimant who is
determined to be ineligible for the pilot program would revert
to the standard appeals process without any penalty. During the
period in which the pilot program is carried out, VA would be
required to provide information to the claimant and the
claimant's representative of record, if any, notice about the
pilot program, including the advantages and disadvantages of
such program, how to elect to participate in the pilot program,
the limitation on the use of new evidence and development of
information, and the ability of the claimant to seek advice
from VSOs, attorneys, and claims agents. Finally, this Section
would require VA to collaborate with and give weight to the
advice of the three VSOs with the most members to stand up an
online tutorial explaining the advantages and disadvantages of
the pilot program.
Section 12(c) would transfer jurisdiction over the FDA
directly to the Board. VA would not provide the claimant with a
statement of the case or require the claimant to file a
substantive appeal. Further, Section 12(c) would require the
Board to (1) maintain the FDA on a separate docket; (2) decide
FDAs in the order received; (3) decide not more than one FDA
for each four traditional appeals decided, though this ratio
may be adjusted for fairness purposes beginning one year after
the pilot program begins; and, (4) decide, to the extent
practicable, each FDA within one year of a claimant's filing
the Notice of Disagreement. Section 12(c) would clarify that
the claimant may not submit any new evidence related to a FDA,
unless the claimant reverts to the standard appeals process. If
a claimant does submit or identify new evidence, such
submission or identification would be deemed to be an election
to make a reversion to the standard appeals process.
If the Board determines that a FDA requires additional
evidence, Section 12(c) would grant the Board authority to
develop such evidence without remand to the VBA. This Section
would also clarify that any new evidence developed by the Board
would be considered by the Board in the first instance.
Further, this section would ensure the claimant and the
representative of record, if any, receives a copy of such newly
developed evidence. Ninety days after the claimant received
such newly developed evidence, the claimant may provide the
Board with additional evidence, without requiring the claimant
to make a reversion to the standard appeals process. Section
12(c) would require the Board to establish an office to develop
evidence needed to decide a FDA. The VBA would transfer
employees who were responsible for processing claims remanded
by the Board to positions within the office of the Board in a
number the Secretary determines sufficient. Section 12(c) would
prohibit the Board from providing hearings for FDAs.
Section 12(d) would establish that the Secretary shall
carry out the pilot program for a five year period beginning
one year after the date of enactment. This Section would apply
only to FDAs that are filed during such period.
Section 12(e) would require the Secretary to submit to the
Committees on Veterans' Affairs of the Senate and the House of
Representatives a report on the implementation of the pilot
program. The first such report would be submitted not later
than 180 days after the date on which the pilot program
commences. Such reports would include: (1) the number of
claimants who filed a FDA under the pilot program; (2) the
average processing time for each such appeal; (3) a summary of
reasons for which development of evidence was required by the
Board; (4) the number of issues decided, listed by the
disposition of the issue; (5) the number of issues decided and
the number of issues for which evidence was not developed; (6)
the number of FDAs decided by the Board, the number of cases
from each agency of original jurisdiction, listed by the
disposition of the issue; (7) the number of FDAs appealed to
the CAVC, listed by the disposition of the case; (8) the number
of reversions; and, (9) any reasons why a claimant was
determined to be ineligible to participate in the pilot
program. Additionally, the report would include a review, made
in conjunction with VSOs, of the efforts of VA to provide clear
rating decisions and improve disability rating notification
letters, including with respect to: (1) the opinions of VSOs
regarding such efforts; and (2) how the pilot program improves
such efforts. The report would also include a recommendation
for any changes to improve the pilot program and an assessment
of the feasibility and advisability of expanding the pilot
program.
Section 12(f) would require that the Secretary publish
interim guidance on the pilot program not later than one day
after the date of enactment. Not later than 90 days after the
date of enactment, the Secretary would prescribe regulations to
carry out such pilot program.
Section 12(g) would define the terms ``claimant,''
``compensation,'' ``fully developed appeal,'' and ``standard
appeal.''
Section 13--Deadline for certification of appeals forms by regional
offices of the Department of Veterans Affairs
Section 13 would require VA regional benefits offices to
certify a form submitted by the veteran to appeal a VA
determination to the Board within one year after receiving such
form.
Section 14--Evaluation of backlog of disability claims and appeals of
claims of Department of Veterans Affairs
Section 14(a) would establish a commission or taskforce to
evaluate and assess the backlog of VA disability claims and the
backlog of appeals claims.
Section 14(b) would require such commission or taskforce to
carry out a study on the backlog of claims. Such study would be
a comprehensive evaluation and assessment of the backlog of
claims, an analysis of possible improvements to the procedures
used to process such claims, and any related issues that such
commission or task force considers relevant. This Section would
also set out the matters the commission or task force would
examine define the role of the commission or task force.
Section 14(c) would require the commission or task force to
submit periodic reports to the President and Congress.
Section 14(d) would establish membership requirements for
such commission or task force.
Section 14(e) would clarify the meeting requirements for
the commission or task force.
Section 14(f) would define the powers of the commission or
task force.
Section 14(g) would authorize compensation, travel
expenses, staff, detail or government employees, and
procurement of temporary and intermittent services.
Section 14(h) would authorize the termination of the
commission or task force within 60 days after which the
commission or taskforce submits the final comprehensive report.
Section 14(i) would authorize VA to make available to the
commission or task force such amounts as the commission or task
force may require to carry out the duties of such commission or
task force.
Section 14(j) would define the terms ``appeals process,''
``Board,'' and ``strategic plan.''
Section 15--Methods for validating certain World War II Merchant
Mariner service considered to be active service by the
Secretary of Veterans Affairs
Section 15(a) would direct the Secretary of Homeland
Security to accept additional documentation when considering
the application for veterans' status of an individual who
performed service as a coastwise merchant seaman during World
War II.
Section 15(b) would provide that other documentation
accepted by the Secretary of Homeland Security pursuant to this
Section shall satisfy all requirements for eligibility of
service during the period beginning on December 7, 1941, and
ending on December 31, 1946.
Section 15(c) would provide that qualified merchant
mariners would be honored as veterans and would be entitled to
veteran designation, burial benefits, and military decoration,
that they shall not be entitled by reason of such recognized
service to any benefit that is not described in this
subsection.
Section 15(d) would require the Secretary of Homeland
Security to verify that an individual performed service under
honorable conditions that satisfies the requirements of a
coastwise merchant seaman pursuant to this Section without
regard to the sex, age, or disability of the individual during
the period in which the individual served as such a coastwise
merchant seaman.
Section 15(e) would define the term ``primary next of
kin.''
Section 15(f) would establish that the effective date of
Section 15 would be 90 days after the date of enactment.
Section 16--Designation of American World War II Cities
Section 16(a) would require the Secretary of Veterans
Affairs to designate at least one city in the United States
each year as an ``American World War II City.''
Section 16(b) would provide criteria for consideration of
the designation as an ``American World War II City.''
Section 16(c) would establish that the city of Wilmington,
North Carolina, would be designated as the first American World
War II City.
Section 17--Sense of Congress regarding American veterans disabled for
life
Section 17(a) would establish Congressional findings.
Section 17(b) would provide that Congress expresses its
appreciation to the men and women left permanently wounded,
ill, or injured, as a result of their service in the Armed
Forces; supports the annual recognition of American veterans
disabled for life each year; and, encourages the American
people to honor American veterans disabled for life each year
with appropriate programs and activities.
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 italic, and existing law in which no
change is proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART II--GENERAL BENEFITS
* * * * * * *
CHAPTER 23--BURIAL BENEFITS
* * * * * * *
Sec. 2306. Headstones, markers, and burial receptacles
(a) The Secretary shall furnish, when requested, appropriate
Government headstones or markers at the expense of the United
States for the unmarked graves of the following:
(1) Any individual buried in a national cemetery or in a post
cemetery.
(2) Any individual eligible for burial in a national cemetery
(but not buried there), except for those persons or classes of
persons enumerated in section 2402(a)(4), (5), and (6) of this
title.
(3) Soldiers of the Union and Confederate Armies of the Civil
War.
(4) Any individual described in section 2402(a)(5) of this
title who is buried in a veterans' cemetery owned by a State.
(5) Any individual who at the time of death was entitled to
retired pay under chapter 1223 of title 10 or would have been
entitled to retired pay under that chapter but for the fact
that the person was under 60 years of age.
(b)(1) The Secretary shall furnish, when requested, an
appropriate memorial headstone or marker for the purpose of
commemorating an eligible individual whose remains are
unavailable. Such a headstone or marker shall be furnished for
placement in a national cemetery area reserved for that purpose
under section 2403 of this title, a veterans' cemetery owned by
a State, or, in the case of a veteran, in a State, local, or
private cemetery.
(2) For purposes of paragraph (1), an eligible individual is
any of the following:
(A) A veteran.
(B) The spouse or surviving spouse of a veteran.
(C) An eligible dependent child of a veteran.
(3) For purposes of paragraph (1), the remains of an
individual shall be considered to be unavailable if the
individual's remains--
(A) have not been recovered or identified;
(B) were buried at sea, whether by the individual's
own choice or otherwise;
(C) were donated to science; or
(D) were cremated and the ashes scattered without
interment of any portion of the ashes.
(4) For purposes of this subsection:
(A) The term ``veteran'' includes an individual who
dies in the active military, naval, or air service.
(B) The term ``surviving spouse'' includes a
surviving spouse who had a subsequent remarriage.
(5) For purposes of this section, the term ``eligible
dependent child'' means a child--
(A) who is under 21 years of age, or under 23 years
of age if pursuing a course of instruction at an
approved educational institution; or
(B) who is unmarried and became permanently
physically or mentally disabled and incapable of self-
support before reaching 21 years of age, or before
reaching 23 years of age if pursuing a course of
instruction at an approved educational institution.
(c) A headstone or marker furnished under subsection (a),
(b), or (d) of this section may be of any material, including
but not limited to marble, granite, bronze, or slate, requested
by the person entitled to request such headstone or marker if
the material requested is determined by the Secretary (1) to be
cost effective, and (2) in a case in which the headstone or
marker is to be placed in a national cemetery, to be
aesthetically compatible with the area of the cemetery in which
it is to be placed.
(d)(1) The Secretary shall furnish, when requested, an
appropriate Government headstone or marker at the expense of
the United States for the grave of an individual described in
paragraph (2) or (5) of subsection (a) who is buried in a
private cemetery, notwithstanding that the grave is marked by a
headstone or marker furnished at private expense. Such a
headstone or marker may be furnished only if the individual
making the request for the Government headstone or marker
certifies to the Secretary that the headstone or marker will be
placed on the grave for which the headstone or marker is
requested, or, if placement on the grave is impossible or
impracticable, as close as possible to the grave within the
grounds of the cemetery in which the grave is located.
(2) Any headstone or marker furnished under this subsection
shall be delivered by the Secretary directly to the cemetery
where the grave is located or to a receiving agent for delivery
to the cemetery.
(3) The headstone or marker furnished under this subsection
shall be the headstone or marker selected by the individual
making the request from among all the headstones and markers
made available by the Government for selection.
[(4) In lieu of furnishing a headstone or marker under this
subsection, the Secretary may furnish, upon request, a
medallion or other device of a design determined by the
Secretary to signify the deceased's status as a veteran, to be
attached to a headstone or marker furnished at private
expense.]
(4)(A) In lieu of furnishing a headstone or marker under this
subsection to a deceased individual described in subparagraph
(B), the Secretary may furnish, upon request, a medallion or
other device of a design determined by the Secretary to signify
the deceased individual's status as a veteran, to be attached
to a headstone or marker furnished at private expense.
(B) A deceased individual described in this subsection is an
individual who--
(i) served in the Armed Forces on or after April 6,
1917; and
(ii) is eligible for a headstone or marker furnished
under paragraph (1) (or would be so eligible but for
the date of the death of the individual).
(e)(1) The Secretary of Veterans Affairs shall provide an
outer burial receptacle for each new grave in an open cemetery
under the control of the National Cemetery Administration in
which remains are interred in a casket. The Secretary of the
Army may provide an outer burial receptacle for such a grave in
the Arlington National Cemetery.
(2) The use of outer burial receptacles in a cemetery under
the control of the National Cemetery Administration or in the
Arlington National Cemetery shall be in accordance with
regulations or procedures approved by the Secretary of Veterans
Affairs or Secretary of the Army, respectively.
(3) Regulations or procedures under paragraph (2) may specify
that--
(A) an outer burial receptacle other than a grave
liner be provided in lieu of a grave liner at the
election of the survivors of the interred veteran; and
(B) if an outer burial receptacle other than a grave
liner is provided in lieu of a grave liner upon an
election of such survivors, such survivors be
required--
(i) to pay the amount by which the cost of
the outer burial receptacle exceeds the cost of
the grave liner that would otherwise have been
provided in the absence of the election; and
(ii) to pay the amount of the administrative
costs incurred by the Secretary (or, with
respect to Arlington National Cemetery, the
Secretary of the Army) in providing the outer
burial receptacle in lieu of such grave liner.
(4) Regulations or procedures under paragraph (2) may provide
for the use of a voucher system, or other system of
reimbursement approved by the Secretary (or, with respect to
Arlington National Cemetery, the Secretary of the Army), for
payment for outer burial receptacles other than grave liners
provided under such regulations or procedures.
(f) The Secretary may furnish a casket or urn, of such
quality as the Secretary considers appropriate for a dignified
burial, for burial in a national cemetery of a deceased veteran
in any case in which the Secretary--
(1) is unable to identify the veteran's next of kin,
if any; and
(2) determines that sufficient resources for the
furnishing of a casket or urn for the burial of the
veteran in a national cemetery are not otherwise
available.
(g)(1) When the Secretary has furnished a headstone or marker
under subsection (a) for the unmarked grave of an individual,
the Secretary shall, if feasible, add a memorial inscription to
that headstone or marker rather than furnishing a separate
headstone or marker under that subsection for the surviving
spouse or eligible dependent child of such individual.
(2) When the Secretary has furnished a memorial headstone or
marker under subsection (b) for purposes of commemorating a
veteran or an individual who died in the active military,
naval, or air service, the Secretary shall, if feasible, add a
memorial inscription to that headstone or marker rather than
furnishing a separate memorial headstone or marker under that
subsection for the surviving spouse or eligible dependent child
of such individual.
(h)(1) A headstone or marker may not be furnished under
subsection (a) for the unmarked grave of a person described in
section 2411(b) of this title.
(2) A memorial headstone or marker may not be furnished under
subsection (b) for the purpose of commemorating a person
described in section 2411(b) of this title.
(3) A headstone or marker may not be furnished under
subsection (d) for the grave of a person described in section
2411(b) of this title.
(4) A casket or urn may not be furnished under subsection (f)
for burial of a person described in section 2411(b) of this
title.
* * * * * * *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS
* * * * * * *
CHAPTER 51--CLAIMS, EFFECTIVE DATES, AND PAYMENTS
SUBCHAPTER I--CLAIMS
Sec.
[5100. Definition of ``claimant''.]
5100. Definitions.
* * * * * * *
5109C. Priority for processing claims.
SUBCHAPTER I--CLAIMS
[Sec. 5100. Definition of ``claimant''
For purposes of this chapter, the term ``claimant'' means any
individual applying for, or submitting a claim for, any benefit
under the laws administered by the Secretary.]
Sec. 5100. Definitions
In this chapter:
(1) The term ``claimant'' means any individual
applying for, or submitting a claim for, any benefit
under the laws administered by the Secretary.
(2) The term ``claim'' means a communication in
writing requesting a determination of entitlement or
evidencing a belief in entitlement to a benefit under
the laws administered by the Secretary.
(3) The term ``formal claim'' means a claim submitted
on an application form prescribed by the Secretary.
Sec. 5101. Claims and forms
(a)(1) [A specific] (A) Except as provided in subparagraph
(B), a specific claim in the form prescribed by the Secretary
(or jointly with the 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.
(B)(i) The Secretary may pay benefits under chapters 13 and
15 and sections 2302, 2307, and 5121 of this title to a
survivor of a veteran who has not filed a formal claim if the
Secretary determines that the record contains sufficient
evidence to establish the entitlement of the survivor to such
benefits.
(ii) For purposes of this subparagraph and section 5110 of
this title, the earlier of the following dates shall be treated
as the date of the receipt of the survivor's application for
benefits described in clause (i):
(I) The date on which the survivor of a veteran (or
the representative of such a survivor) notifies the
Secretary of the death of the veteran through a death
certificate or other relevant medical evidence
indicating that the death was due to a service-
connected or compensable disability.
(II) The head of any other department or agency of
the Federal Government notifies the Secretary of the
death of the veteran.
(iii) In notifying the Secretary of the death of a veteran as
described in clause (ii)(I), the survivor (or the
representative of such a survivor) may submit to the Secretary
additional documents relating to such death without being
required to file a formal claim.
(2) If an individual has not attained the age of 18 years, is
mentally incompetent, or is physically unable to sign a form, a
form filed under paragraph (1) for the individual may be signed
by a court- appointed representative, a person who is
responsible for the care of the individual, including a spouse
or other relative, or an attorney in fact or agent authorized
to act on behalf of the individual under a durable power of
attorney. If the individual is in the care of an institution,
the manager or principal officer of the institution may sign
the form.
(b)(1) A claim by a surviving spouse or child for
compensation or dependency and indemnity compensation shall
also be considered to be a claim for death pension and accrued
benefits, and a claim by a surviving spouse or child for death
pension shall be considered to be a claim for death
compensation (or dependency and indemnity compensation) and
accrued benefits.
(2) A claim by a parent for compensation or dependency and
indemnity compensation shall also be considered to be a claim
for accrued benefits.
(c)(1) Any person who applies for, signs a form on behalf of
an individual to apply for, or is in receipt of any
compensation or pension benefit under laws administered by the
Secretary shall, if requested by the Secretary, furnish the
Secretary with the social security number of such person, or
TIN in the case that the person is not an individual, and the
social security number of any claimant, dependent, or
beneficiary on whose behalf, or based upon whom, such person
applies for or is in receipt of such benefit. A person is not
required to furnish the Secretary with a social security number
for any person to whom a social security number has not been
assigned.
(2) The Secretary shall deny the application of or terminate
the payment of compensation or pension to a person who fails to
furnish the Secretary with a social security number or TIN
required to be furnished pursuant to paragraph (1) of this
subsection. The Secretary may thereafter reconsider the
application or reinstate payment of compensation or pension, as
the case may be, if such person furnishes the Secretary with
such social security number or TIN.
(3) The costs of administering this subsection shall be paid
for from amounts available to the Department of Veterans
Affairs for the payment of compensation and pension.
(d) In this section:
(1) The term ``mentally incompetent'' with respect to
an individual means that the individual lacks the
mental capacity--
(A) to provide substantially accurate
information needed to complete a form; or
(B) to certify that the statements made on a
form are true and complete.
(2) The term ``TIN'' has the meaning given the term
in section 7701(a)(41) of the Internal Revenue Code of
1986.
* * * * * * *
Sec. 5109C. Priority for processing claims
(a) Priority.--In processing claims for compensation under
this chapter, the Secretary shall provide the following
claimants with priority over other claimants:
(1) Veterans who have attained the age of 70.
(2) Veterans who are terminally ill.
(3) Veterans with life-threatening illnesses.
(4) Homeless veterans (as defined in section 2002 of
this title).
(5) Veterans who were awarded the Medal of Honor.
(6) Veterans who are former prisoners of war.
(7) Veterans whose claims are being reviewed again in
relation to a previously denied claim relating to
military sexual trauma.
(8) Veterans whom the Secretary determines, on a
case-by-case basis, are seriously or very seriously
injured.
(9) Veterans whom the Secretary determines, on a
case-by-case basis, should be given priority under this
section based on an application for good cause
established by the Secretary.
(b) Regulations.--The Secretary shall prescribe regulations
to carry out subsection (a).
* * * * * * *
SUBCHAPTER III--PAYMENT OF BENEFITS
* * * * * * *
Sec. 5125. Acceptance of reports of private physician examinations
[For purposes] (a) In General._For purposes of establishing
any claim for benefits under chapter 11 or 15 of this title, a
report of a medical examination administered by a private
physician that is provided by a claimant in support of a claim
for benefits under that chapter may be accepted without a
requirement for confirmation by an examination by a physician
employed by the Veterans Health Administration if the report is
sufficiently complete to be adequate for the purpose of
adjudicating such claim.
(b) Sufficiency of Evidence.--If a veteran has submitted a
medical opinion or report of a medical examination administered
by a private physician in support of the veteran's claim, the
Secretary may not order a medical examination to be
administered by a Department physician unless the Secretary
provides the veteran with a thorough explanation of why the
medical opinion or report submitted by the veteran was not
sufficiently complete and the reason why additional medical
evidence is necessary.
(c) Sufficiently Complete Defined.--For purposes of a medical
opinion or report described in subsection (a), the term
``sufficiently complete'' means competent, credible, probative,
and containing such information as may be required to make a
decision on the claim for which the medical opinion or report
is provided.
* * * * * * *
CHAPTER 53--SPECIAL PROVISIONS RELATING TO BENEFITS
* * * * * * *
Sec. 5312. Annual adjustment of certain benefit rates
(a) Whenever there is an increase in benefit amounts payable
under title II of the Social Security Act (42 U.S.C. 401 et
seq.) as a result of a determination made under section 215(i)
of such Act (42 U.S.C. 415(i)), the Secretary shall, effective
on the date of such increase in benefit amounts, increase each
maximum annual rate of pension under sections 1521, 1541, and
1542 of this title, the rate of increased pension paid under
such sections 1521 and 1541 on account of children, and each
rate of monthly allowance paid under section 1805 of this
title, as such rates were in effect immediately prior to the
date of such increase in benefit amounts payable under title II
of the Social Security Act, by the same percentage as the
percentage by which such benefit amounts are increased.
(b)(1) Whenever there is an increase in benefit amounts
payable under title II of the Social Security Act (42 U.S.C.
401 et seq.) as a result of a determination made under section
215(i) of such Act (42 U.S.C. 415(i)), the Secretary shall,
effective on the date of such increase in benefit amounts,
increase the maximum monthly rates of dependency and indemnity
compensation for parents payable under subsections (b), (c),
and (d), and the monthly rate provided in subsection (g), of
section 1315 of this title and the annual income limitations
prescribed in subsections (b)(3), (c)(3), and (d)(3) of such
section, and the annual benefit amount limitations under
sections 5507(c)(2)(D) and 5508 of this title, as such rates
and limitations were in effect immediately prior to the date of
such increase in benefit amounts payable under title II of the
Social Security Act, by the same percentage as the percentage
by which such benefit amounts are increased.
(2)(A) Whenever there is an increase under paragraph (1) of
this subsection in such rates and annual income limitations,
the Secretary shall, effective on the date of such increase in
such rates and limitations, adjust (as provided in subparagraph
(B) of this paragraph) the rates of dependency and indemnity
compensation payable under subsection (b)(1) or (c)(1) of
section 1315 of this title to any parent whose annual income is
more than $800 but not more than the annual income limitation
in effect under subsection (b)(3) or (c)(3) of such section, as
appropriate, and adjust the rates of such compensation payable
under subsection (d)(1) of such section to any parent whose
annual income is more than $1,000 but not more than the annual
income limitation in effect under subsection (d)(3) of such
section.
(B) The adjustment in rates of dependency and indemnity
compensation referred to in subparagraph (A) of this paragraph
shall be made by the Secretary in accordance with regulations
which the Secretary shall prescribe.
(c)(1) Whenever there is an increase under subsection (a) in
benefit rates payable under sections 1521, 1541, 1542, and 1805
of this title and an increase under subsection (b) in benefit
rates and annual income limitations under section 1315 of this
title, the Secretary shall publish such rates and limitations
(including those rates adjusted by the Secretary under
subsection (b)(2) of this section), as increased pursuant to
such subsections, in the Federal Register at the same time as
the material required by section 215(i)(2)(D) of the Social
Security Act (42 U.S.C. 415(i)(2)(D)) is published by reason of
a determination under section 215(i) of such Act (42 U.S.C.
415(i)).
(2) Whenever such rates and income limitations are so
increased, the Secretary may round such rates and income
limitations in such manner as the Secretary considers equitable
and appropriate for ease of administration.
(d)(1) Whenever there is an increase in benefit amounts
payable under title II of the Social Security Act (42 U.S.C.
401 et seq.) as a result of a determination made under section
215(i) of such Act (42 U.S.C. 415(i)), the Secretary shall,
effective on the date of such increase in benefit amounts,
increase the dollar amounts in effect for the payment of
disability compensation and dependency and indemnity
compensation by the Secretary, as specified in paragraph (2),
as such amounts were in effect immediately before the date of
such increase in benefit amounts payable under title II of the
Social Security Act, by the same percentage as the percentage
by which such benefit amounts are increased.
(2) The dollar amounts to be increased pursuant to paragraph
(1) are the following:
(A) Wartime disability compensation.--Each of the
dollar amounts in effect under section 1114 of this
title.
(B) Additional compensation for dependents.--Each of
the dollar amounts in effect under section 1115(1) of
this title.
(C) Clothing allowance.--The dollar amount in effect
under section 1162 of this title.
(D) Dependency and indemnity compensation to
surviving spouse.--Each of the dollar amounts in effect
under subsections (a) through (d) of section 1311 of
such title.
(E) Dependency and indemnity compensation to
children.--Each of the dollar amounts in effect under
sections 1313(a) and 1314 of such title.
(3) Whenever there is an increase under paragraph (1) in
amounts in effect for the payment of disability compensation
and dependency and indemnity compensation, the Secretary shall
publish such amounts, as increased pursuant to such paragraph,
in the Federal Register at the same time as the material
required by section 215(i)(2)(D) of the Social Security Act (42
U.S.C. 415(i)(2)(D)) is published by reason of a determination
under section 215(i) of such Act (42 U.S.C. 415(i)).
(4) Each dollar amount increased under paragraph (1), if not
a whole dollar amount, shall be rounded to the next lower whole
dollar amount.
(5) The Secretary of Veterans Affairs may adjust
administratively, consistent with the increases made under
subsection (a), the rates of disability compensation payable to
persons under section 10 of Public Law 85-857 (72 Stat. 1263)
who have not received compensation under chapter 11 of this
title.
* * * * * * *
CHAPTER 55--MINORS, INCOMPETENTS, AND OTHER WARDS
Sec.
5501. Commitment actions.
[5502. Payments to and supervision of fiduciaries.]
5502. Appointment of fiduciaries.
5502A. Supervision of fiduciaries.
* * * * * * *
[5509. Authority to require fiduciary to receive payments at regional
offices of the Department when failing to provide required
accounting.]
5509. Annual reports and accountings of fiduciaries.
* * * * * * *
* * * * * * *
[Sec. 5502. Payments to and supervision of fiduciaries
[(a)(1) Where it appears to the Secretary that the interest
of the beneficiary would be served thereby, payment of benefits
under any law administered by the Secretary may be made
directly to the beneficiary or to a relative or some other
fiduciary for the use and benefit of the beneficiary,
regardless of any legal disability on the part of the
beneficiary. Where, in the opinion of the Secretary, any
fiduciary receiving funds on behalf of a Department beneficiary
is acting in such a number of cases as to make it impracticable
to conserve properly the estates or to supervise the persons of
the beneficiaries, the Secretary may refuse to make future
payments in such cases as the Secretary may deem proper.
[(2) In a case in which the Secretary determines that a
commission is necessary in order to obtain the services of a
fiduciary in the best interests of a beneficiary, the Secretary
may authorize a fiduciary appointed by the Secretary to obtain
from the beneficiary's estate a reasonable commission for
fiduciary services rendered, but the commission for any year
may not exceed 4 percent of the monetary benefits under laws
administered by the Secretary paid on behalf of the beneficiary
to the fiduciary during such year. A commission may not be
authorized for a fiduciary who receives any other form of
remuneration or payment in connection with rendering fiduciary
services for benefits under this title on behalf of the
beneficiary.
[(b) Whenever it appears that any fiduciary, in the opinion
of the Secretary, is not properly executing or has not properly
executed the duties of the trust of such fiduciary or has
collected or paid, or is attempting to collect or pay, fees,
commissions, or allowances that are inequitable or in excess of
those allowed by law for the duties performed or expenses
incurred, or has failed to make such payments as may be
necessary for the benefit of the ward or the dependents of the
ward, then the Secretary may appear, by the Secretary's
authorized attorney, in the court which has appointed such
fiduciary, or in any court having original, concurrent, or
appellate jurisdiction over said cause, and make proper
presentation of such matters. The Secretary, in the Secretary's
discretion, may suspend payments to any such fiduciary who
shall neglect or refuse, after reasonable notice, to render an
account to the Secretary from time to time showing the
application of such payments for the benefit of such
incompetent or minor beneficiary, or who shall neglect or
refuse to administer the estate according to law. The Secretary
may require the fiduciary, as part of such account, to disclose
any additional financial information concerning the beneficiary
(except for information that is not available to the
fiduciary). The Secretary may appear or intervene by the
Secretary's duly authorized attorney in any court as an
interested party in any litigation instituted by the Secretary
or otherwise, directly affecting money paid to such fiduciary
under this section.
[(c) Authority is hereby granted for the payment of any court
or other expenses incident to any investigation or court
proceeding for the appointment of any fiduciary or other person
for the purpose of payment of benefits payable under laws
administered by the Secretary or the removal of such fiduciary
and appointment of another, and of expenses in connection with
the administration of such benefits by such fiduciaries, or in
connection with any other court proceeding hereby authorized,
when such payment is authorized by the Secretary.
[(d) All or any part of any benefits the payment of which is
suspended or withheld under this section may, in the discretion
of the Secretary, be paid temporarily to the person having
custody and control of the incompetent or minor beneficiary, to
be used solely for the benefit of such beneficiary, or, in the
case of an incompetent veteran, may be apportioned to the
dependent or dependents, if any, of such veteran. Any part not
so paid and any funds of a mentally incompetent or insane
veteran not paid to the chief officer of the institution in
which such veteran is a patient nor apportioned to the
veteran's dependent or dependents may be ordered held in the
Treasury to the credit of such beneficiary. All funds so held
shall be disbursed under the order and in the discretion of the
Secretary for the benefit of such beneficiary or the
beneficiary's dependents. Any balance remaining in such fund to
the credit of any beneficiary may be paid to the beneficiary if
the beneficiary recovers and is found competent, or if a minor,
attains majority, or otherwise to the beneficiary's fiduciary,
or, in the event of the beneficiary's death, to the
beneficiary's personal representative, except as otherwise
provided by law; however, payment will not be made to the
beneficiary's personal representative if, under the law of the
beneficiary's last legal residence, the beneficiary's estate
would escheat to the State. In the event of the death of a
mentally incompetent or insane veteran, all gratuitous benefits
under laws administered by the Secretary deposited before or
after August 7, 1959, in the personal funds of patients trust
fund on account of such veteran shall not be paid to the
personal representative of such veteran, but shall be paid to
the following persons living at the time of settlement, and in
the order named: The surviving spouse, the children (without
regard to age or marital status) in equal parts, and the
dependent parents of such veteran, in equal parts. If any
balance remains, such balance shall be deposited to the credit
of the applicable current appropriation; except that there may
be paid only so much of such balance as may be necessary to
reimburse a person (other than a political subdivision of the
United States) who bore the expenses of last sickness or burial
of the veteran for such expenses. No payment shall be made
under the two preceding sentences of this subsection unless
claim therefor is filed with the Secretary within five years
after the death of the veteran, except that, if any person so
entitled under said two sentences is under legal disability at
the time of death of the veteran, such five-year period of
limitation shall run from the termination or removal of the
legal disability.
[(e) Any funds in the hands of a fiduciary appointed by a
State court or the Secretary derived from benefits payable
under laws administered by the Secretary, which under the law
of the State wherein the beneficiary had last legal residence
would escheat to the State, shall escheat to the United States
and shall be returned by such fiduciary, or by the personal
representative of the deceased beneficiary, less legal expenses
of any administration necessary to determine that an escheat is
in order, to the Department, and shall be deposited to the
credit of the applicable revolving fund, trust fund, or
appropriation.]
Sec. 5502. Appointment of fiduciaries
(a) Appointment.--Where it appears to the Secretary that the
interest of the beneficiary would be served thereby, payment of
benefits under any law administered by the Secretary may be
made directly to the beneficiary or to a relative or some other
fiduciary for the use and benefit of the beneficiary,
regardless of any legal disability on the part of the
beneficiary.
(b) Appeals.--(1) If the Secretary determines a beneficiary
to be mentally incompetent for purposes of appointing a
fiduciary under this chapter, the Secretary shall provide such
beneficiary with a written statement detailing the reasons for
such determination.
(2) A beneficiary whom the Secretary has determined to be
mentally incompetent for purposes of appointing a fiduciary
under this chapter may appeal such determination.
(c) Modification.--(1) A beneficiary for whom the Secretary
appoints a fiduciary under this chapter may, at any time,
request the Secretary to--
(A) remove the fiduciary so appointed; and
(B) have a new fiduciary appointed.
(2) The Secretary shall comply with a request under paragraph
(1) if the Secretary determines that the request is made in
good faith and--
(A) the fiduciary requested to be removed receives a
fee from the beneficiary and a suitable volunteer
fiduciary is available to assist the beneficiary; or
(B) the beneficiary provides credible information
that the fiduciary requested to be removed is--
(i) not acting in the interest of the
beneficiary; or
(ii) unable to effectively serve the
beneficiary because of an irreconcilable
personality conflict or disagreement.
(3) The Secretary shall ensure that any removal or new
appointment of a fiduciary under paragraph (1) does not delay
or interrupt the beneficiary's receipt of benefits administered
by the Secretary.
(d) Independence.--A fiduciary appointed by the Secretary
shall operate independently of the Department to determine the
actions that are in the interest of the beneficiary.
(e) Predesignation.--A veteran may predesignate a fiduciary
by--
(1) submitting written notice to the Secretary of the
predesignated fiduciary; or
(2) submitting a form provided by the Secretary for
such purpose.
(f) Appointment of Non-predesignated Fiduciary.--If a
beneficiary designates an individual to serve as a fiduciary
under subsection (e) and the Secretary appoints an individual
not so designated as the fiduciary for such beneficiary, the
Secretary shall notify such beneficiary of--
(1) the reason why such designated individual was not
appointed; and
(2) the ability of the beneficiary to modify the
appointed fiduciary under subsection (c).
(g) Priority of Appointment.--In appointing a fiduciary under
this chapter, if a beneficiary does not designate a fiduciary
pursuant to subsection (e), to the extent possible the
Secretary shall appoint a person who is--
(1) a relative of the beneficiary;
(2) appointed as guardian of the beneficiary by a
court of competent jurisdiction; or
(3) authorized to act on behalf of the beneficiary
under a durable power of attorney.
Sec. 5502A. Supervision of fiduciaries
(a) Commission.--(1)(A) In a case in which the Secretary
determines that a commission is necessary in order to obtain
the services of a fiduciary in the best interests of a
beneficiary, the Secretary may authorize a fiduciary appointed
by the Secretary to obtain from the monthly benefits provided
to the beneficiary a reasonable commission for fiduciary
services rendered, but the commission for any month may not
exceed the lesser of the following amounts:
(i) The amount that equals three percent of the
monthly monetary benefits under laws administered by
the Secretary paid on behalf of the beneficiary to the
fiduciary.
(ii) $35.
(B) A commission paid under this paragraph may not be derived
from any award to a beneficiary regarding back pay or
retroactive benefits payments.
(C) A commission may not be authorized for a fiduciary who
receives any other form of remuneration or payment in
connection with rendering fiduciary services for benefits under
this title on behalf of the beneficiary.
(D) In accordance with section 6106 of this title, a
commission may not be paid to a fiduciary if the Secretary
determines that the fiduciary misused any benefit payments of a
beneficiary.
(E) If the Secretary determines that the fiduciary has
misused any benefit or payments of a beneficiary, the Secretary
may revoke the fiduciary status of the fiduciary.
(2) Where, in the opinion of the Secretary, any fiduciary
receiving funds on behalf of a Department beneficiary is acting
in such a number of cases as to make it impracticable to
conserve properly the estates or to supervise the persons of
the beneficiaries, the Secretary may refuse to make future
payments in such cases as the Secretary may deem proper.
(b) Court.--Whenever it appears that any fiduciary, in the
opinion of the Secretary, is not properly executing or has not
properly executed the duties of the trust of such fiduciary or
has collected or paid, or is attempting to collect or pay,
fees, commissions, or allowances that are inequitable or in
excess of those allowed by law for the duties performed or
expenses incurred, or has failed to make such payments as may
be necessary for the benefit of the ward or the dependents of
the ward, then the Secretary may appear, by the Secretary's
authorized attorney, in the court which has appointed such
fiduciary, or in any court having original, concurrent, or
appellate jurisdiction over said cause, and make proper
presentation of such matters. The Secretary, in the Secretary's
discretion, may suspend payments to any such fiduciary who
shall neglect or refuse, after reasonable notice, to render an
account to the Secretary from time to time showing the
application of such payments for the benefit of such
incompetent or minor beneficiary, or who shall neglect or
refuse to administer the estate according to law. The Secretary
may require the fiduciary, as part of such account, to disclose
any additional financial information concerning the beneficiary
(except for information that is not available to the
fiduciary). The Secretary may appear or intervene by the
Secretary's duly authorized attorney in any court as an
interested party in any litigation instituted by the Secretary
or otherwise, directly affecting money paid to such fiduciary
under this section.
(c) Payment of Certain Expenses.--Authority is hereby granted
for the payment of any court or other expenses incident to any
investigation or court proceeding for the appointment of any
fiduciary or other person for the purpose of payment of
benefits payable under laws administered by the Secretary or
the removal of such fiduciary and appointment of another, and
of expenses in connection with the administration of such
benefits by such fiduciaries, or in connection with any other
court proceeding hereby authorized, when such payment is
authorized by the Secretary.
(d) Temporary Payment of Benefits.--All or any part of any
benefits the payment of which is suspended or withheld under
this section may, in the discretion of the Secretary, be paid
temporarily to the person having custody and control of the
incompetent or minor beneficiary, to be used solely for the
benefit of such beneficiary, or, in the case of an incompetent
veteran, may be apportioned to the dependent or dependents, if
any, of such veteran. Any part not so paid and any funds of a
mentally incompetent or insane veteran not paid to the chief
officer of the institution in which such veteran is a patient
nor apportioned to the veteran's dependent or dependents may be
ordered held in the Treasury to the credit of such beneficiary.
All funds so held shall be disbursed under the order and in the
discretion of the Secretary for the benefit of such beneficiary
or the beneficiary's dependents. Any balance remaining in such
fund to the credit of any beneficiary may be paid to the
beneficiary if the beneficiary recovers and is found competent,
or if a minor, attains majority, or otherwise to the
beneficiary's fiduciary, or, in the event of the beneficiary's
death, to the beneficiary's personal representative, except as
otherwise provided by law; however, payment will not be made to
the beneficiary's personal representative if, under the law of
the beneficiary's last legal residence, the beneficiary's
estate would escheat to the State. In the event of the death of
a mentally incompetent or insane veteran, all gratuitous
benefits under laws administered by the Secretary deposited
before or after August 7, 1959, in the personal funds of
patient's trust fund on account of such veteran shall not be
paid to the personal representative of such veteran, but shall
be paid to the following persons living at the time of
settlement, and in the order named: The surviving spouse, the
children (without regard to age or marital status) in equal
parts, and the dependent parents of such veteran, in equal
parts. If any balance remains, such balance shall be deposited
to the credit of the applicable current appropriation; except
that there may be paid only so much of such balance as may be
necessary to reimburse a person (other than a political
subdivision of the United States) who bore the expenses of last
sickness or burial of the veteran for such expenses. No payment
shall be made under the two preceding sentences of this
subsection unless claim therefor is filed with the Secretary
within five years after the death of the veteran, except that,
if any person so entitled under said two sentences is under
legal disability at the time of death of the veteran, such
five-year period of limitation shall run from the termination
or removal of the legal disability.
(e) Escheatment.--Any funds in the hands of a fiduciary
appointed by a State court or the Secretary derived from
benefits payable under laws administered by the Secretary,
which under the law of the State wherein the beneficiary had
last legal residence would escheat to the State, shall escheat
to the United States and shall be returned by such fiduciary,
or by the personal representative of the deceased beneficiary,
less legal expenses of any administration necessary to
determine that an escheat is in order, to the Department, and
shall be deposited to the credit of the applicable revolving
fund, trust fund, or appropriation.
(f) Assistance.--The Secretary shall provide to a fiduciary
appointed under section 5502 of this title materials and tools
to assist the fiduciary in carrying out the responsibilities of
the fiduciary under this chapter, including--
(1) handbooks, brochures, or other written material
that explain the responsibilities of a fiduciary under
this chapter;
(2) tools located on an Internet website, including
forms to submit to the Secretary required information;
and
(3) assistance provided by telephone.
* * * * * * *
Sec. 5506. Definition of ``fiduciary''
[For purposes] (a) For purposes of this chapter and chapter
61 of this title, the term ``fiduciary'' means--
(1) a person who is a guardian, curator, conservator,
committee, or person legally vested with the
responsibility or care of a claimant (or a claimant's
estate) or of a beneficiary (or a beneficiary's
estate); or
(2) any other person having been appointed in a
representative capacity to receive money paid under any
of the laws administered by the Secretary for the use
and benefit of a minor, incompetent, or other
beneficiary.
(b)(1) For purposes of subsection (a), the term ``person''
includes any--
(A) State or local government agency whose mission is
to carry out income maintenance, social service, or
health care-related activities;
(B) any State or local government agency with
fiduciary responsibilities; or
(C) any nonprofit social service agency that the
Secretary determines--
(i) regularly provides services as a
fiduciary concurrently to five or more
individuals; and
(ii) is not a creditor of any such
individual.
(2) The Secretary shall maintain a list of State or local
agencies and nonprofit social service agencies under paragraph
(1) that are qualified to act as a fiduciary under this
chapter. In maintaining such list, the Secretary may consult
the lists maintained under section 807(h) of the Social
Security Act (42 U.S.C. 1007(h)).
[Sec. 5507. Inquiry, investigations, and qualification of fiduciaries
[(a) Any certification of a person for payment of benefits of
a beneficiary to that person as such beneficiary's fiduciary
under section 5502 of this title shall be made on the basis
of--
[(1) an inquiry or investigation by the Secretary of
the fitness of that person to serve as fiduciary for
that beneficiary, such inquiry or investigation--
[(A) to be conducted in advance of such
certification;
[(B) to the extent practicable, to include a
face-to-face interview with such person; and
[(C) to the extent practicable, to include a
copy of a credit report for such person issued
within one year of the date of the proposed
appointment;
[(2) adequate evidence that certification of that
person as fiduciary for that beneficiary is in the
interest of such beneficiary (as determined by the
Secretary under regulations); and
[(3) the furnishing of any bond that may be required
by the Secretary.
[(b) As part of any inquiry or investigation of any person
under subsection (a), the Secretary shall request information
concerning whether that person has been convicted of any
offense under Federal or State law which resulted in
imprisonment for more than one year. If that person has been
convicted of such an offense, the Secretary may certify the
person as a fiduciary only if the Secretary finds that the
person is an appropriate person to act as fiduciary for the
beneficiary concerned under the circumstances.
[(c)(1) In the case of a proposed fiduciary described in
paragraph (2), the Secretary, in conducting an inquiry or
investigation under subsection (a)(1), may carry out such
inquiry or investigation on an expedited basis that may include
waiver of any specific requirement relating to such inquiry or
investigation, including the otherwise applicable provisions of
subparagraphs (A), (B), and (C) of such subsection. Any such
inquiry or investigation carried out on such an expedited basis
shall be carried out under regulations prescribed for purposes
of this section.
[(2) Paragraph (1) applies with respect to a proposed
fiduciary who is--
[(A) the parent (natural, adopted, or stepparent) of
a beneficiary who is a minor;
[(B) the spouse or parent of an incompetent
beneficiary;
[(C) a person who has been appointed a fiduciary of
the beneficiary by a court of competent jurisdiction;
or
[(D) being appointed to manage an estate where the
annual amount of veterans benefits to be managed by the
proposed fiduciary does not exceed $3,600, as adjusted
pursuant to section 5312 of this title.
[(d) Temporary Fiduciaries.--When in the opinion of the
Secretary, a temporary fiduciary is needed in order to protect
the assets of the beneficiary while a determination of
incompetency is being made or appealed or a fiduciary is
appealing a determination of misuse, the Secretary may appoint
one or more temporary fiduciaries for a period not to exceed
120 days. If a final decision has not been made within 120
days, the Secretary may not continue the appointment of the
fiduciary without obtaining a court order for appointment of a
guardian, conservator, or other fiduciary under the authority
provided in section 5502(b) of this title.]
Sec. 5507. Inquiry, investigations, and qualification of fiduciaries
(a) Investigation.--Any certification of a person for payment
of benefits of a beneficiary to that person as such
beneficiary's fiduciary under section 5502 of this title shall
be made on the basis of--
(1) an inquiry or investigation by the Secretary of
the fitness of that person to serve as fiduciary for
that beneficiary to be conducted in advance of such
certification and in accordance with subsection (b);
(2) adequate evidence that certification of that
person as fiduciary for that beneficiary is in the
interest of such beneficiary (as determined by the
Secretary under regulations);
(3) adequate evidence that the person to serve as
fiduciary protects the private information of a
beneficiary in accordance with subsection (d)(1); and
(4) the furnishing of any bond that may be required
by the Secretary in accordance with subsection (f).
(b) Elements of Investigation.--(1) In conducting an inquiry
or investigation of a proposed fiduciary under subsection
(a)(1), the Secretary shall conduct--
(A) a face-to-face interview with the proposed
fiduciary by not later than 30 days after the date on
which such inquiry or investigation begins; and
(B) a background check of the proposed fiduciary to--
(i) in accordance with paragraph (2),
determine whether the proposed fiduciary has
been convicted of a crime; and
(ii) determine whether the proposed fiduciary
will serve the best interest of the
beneficiary, including by conducting a credit
check of the proposed fiduciary and checking
the records under paragraph (5).
(2) The Secretary shall request information concerning
whether that person has been convicted of any offense under
Federal or State law. If that person has been convicted of such
an offense, the Secretary may certify the person as a fiduciary
only if the Secretary finds that the person is an appropriate
person to act as fiduciary for the beneficiary concerned under
the circumstances.
(3) The Secretary shall conduct the background check
described in paragraph (1)(B)--
(A) each time a person is proposed to be a fiduciary,
regardless of whether the person is serving or has
served as a fiduciary; and
(B) at no expense to the beneficiary.
(4) Each proposed fiduciary shall disclose to the Secretary
the number of beneficiaries that the fiduciary acts on behalf
of.
(5) The Secretary shall maintain records of any person who
has--
(A) previously served as a fiduciary; and
(B) had such fiduciary status revoked by the
Secretary.
(6)(A) If a fiduciary appointed by the Secretary is convicted
of a crime described in subparagraph (B), the Secretary shall
notify the beneficiary of such conviction by not later than 14
days after the date on which the Secretary learns of such
conviction.
(B) A crime described in this subparagraph is a crime--
(i) for which the fiduciary is convicted while
serving as a fiduciary for any person;
(ii) that is not included in a report submitted by
the fiduciary under section 5509(a) of this title; and
(iii) that the Secretary determines could affect the
ability of the fiduciary to act on behalf of the
beneficiary.
(c) Investigation of Certain Persons.--(1) In the case of a
proposed fiduciary described in paragraph (2), the Secretary,
in conducting an inquiry or investigation under subsection
(a)(1), may carry out such inquiry or investigation on an
expedited basis that may include giving priority to conducting
such inquiry or investigation. Any such inquiry or
investigation carried out on such an expedited basis shall be
carried out under regulations prescribed for purposes of this
section.
(2) Paragraph (1) applies with respect to a proposed
fiduciary who is--
(A) the parent (natural, adopted, or stepparent) of a
beneficiary who is a minor;
(B) the spouse or parent of an incompetent
beneficiary;
(C) a person who has been appointed a fiduciary of
the beneficiary by a court of competent jurisdiction;
(D) being appointed to manage an estate where the
annual amount of veterans benefits to be managed by the
proposed fiduciary does not exceed $3,600, as adjusted
pursuant to section 5312 of this title; or
(E) a person who is authorized to act on behalf of
the beneficiary under a durable power of attorney.
(d) Protection of Private Information.--(1) A fiduciary shall
take all reasonable precautions to--
(A) protect the private information of a beneficiary,
including personally identifiable information; and
(B) securely conducts financial transactions.
(2) A fiduciary shall notify the Secretary of any action of
the fiduciary that compromises or potentially compromises the
private information of a beneficiary.
(e) Potential Misuse of Funds.--(1) If the Secretary has
reason to believe that a fiduciary may be misusing all or part
of the benefit of a beneficiary, the Secretary shall--
(A) conduct a thorough investigation to determine the
veracity of such belief; and
(B) if such veracity is established, transmit to the
officials described in paragraph (2) a report of such
investigation.
(2) The officials described in this paragraph are the
following:
(A) The Attorney General.
(B) Each head of a Federal department or agency that
pays to a fiduciary or other person benefits under any
law administered by such department of agency for the
use and benefit of a minor, incompetent, or other
beneficiary.
(f) Bond.--In determining whether a proposed fiduciary is
required to furnish a bond under subsection (a)(4), the
Secretary shall consider--
(1) the existence of any familial or other personal
relationship between the proposed fiduciary and the
beneficiary; and
(2) the care the proposed fiduciary has taken to
protect the interests of the beneficiary.
(g) List of Fiduciaries.--Each regional office of the
Veterans Benefits Administration shall maintain a list of the
following:
(1) The name and contact information of each
fiduciary, including address, telephone number, and
email address.
(2) With respect to each fiduciary described in
paragraph (1)--
(A) the date of the most recent background
check and credit check performed by the
Secretary under this section;
(B) the date that any bond was paid under
this section;
(C) the name, address, and telephone number
of each beneficiary the fiduciary acts on
behalf of; and
(D) the amount that the fiduciary controls
with respect to each beneficiary described in
subparagraph (C).
* * * * * * *
Sec. 5509. [Authority to require fiduciary to receive payments at
regional offices of the Department when failing to
provide required accounting] Annual reports and
accountings of fiduciaries
(a) Required Reports and Accountings.--The Secretary [may
require a fiduciary to file a] shall require a fiduciary to
file an annual report or accounting pursuant to regulations
prescribed by the Secretary. The Secretary shall transmit such
annual report or accounting to the beneficiary and any legal
guardian of such beneficiary.
(b) Actions Upon Failure To File.--In any case in which a
fiduciary fails to submit a report or accounting required by
the Secretary under subsection (a), the Secretary may, after
furnishing notice to such fiduciary and the beneficiary
entitled to such payment of benefits, require that such
fiduciary appear in person at a regional office of the
Department serving the area in which the beneficiary resides in
order to receive such payments.
(c) Matters Included.--Except as provided by subsection (f),
an annual report or accounting under subsection (a) shall
include the following:
(1) For each beneficiary that a fiduciary acts on
behalf of--
(A) the amount of the benefits of the
beneficiary provided under any law administered
by the Secretary accrued during the year, the
amount spent, and the amount remaining; and
(B) if the fiduciary serves the beneficiary
with respect to benefits not administered by
the Secretary, an accounting of all sources of
benefits or other income the fiduciary oversees
for the beneficiary.
(2) A list of events that occurred during the year
covered by the report that could affect the ability of
the fiduciary to act on behalf of the beneficiary,
including--
(A) the fiduciary being convicted of any
crime;
(B) the fiduciary declaring bankruptcy; and
(C) any judgments entered against the
fiduciary.
(d) Random Audits.--The Secretary shall annually conduct
random audits of fiduciaries who receive a commission pursuant
to subsection 5502A(a)(1) of this title.
(e) Status of Fiduciary.--If a fiduciary includes in the
annual report events described in subsection (c)(2), the
Secretary may take appropriate action to adjust the status of
the fiduciary as the Secretary determines appropriate,
including by revoking the fiduciary status of the fiduciary.
(f) Caregivers and Certain Other Fiduciaries.--(1)(A) In
carrying out this section, the Secretary shall ensure that a
caregiver fiduciary is required only to file an annual report
or accounting under subsection (a) with respect to the amount
of the benefits of the beneficiary provided under any law
administered by the Secretary--
(i) spent on--
(I) food and housing for the beneficiary; and
(II) clothing, health-related expenses,
recreation, and other personal items for the
beneficiary; and
(ii) saved for the beneficiary.
(B) The Secretary shall coordinate with the Under Secretary
for Benefits and the Under Secretary for Health to--
(i) minimize the frequency with which employees of
the Department visit the home of a caregiver fiduciary
and beneficiary; and
(ii) limit the extent of supervision by such Under
Secretaries with respect to such a fiduciary and
beneficiary.
(C) In this paragraph, the term ``caregiver fiduciary'' means
a fiduciary who--
(i) in addition to acting as a fiduciary for a
beneficiary, is approved by the Secretary to be a
provider of personal care services for the beneficiary
under paragraph (3)(A)(i) of section 1720G(a) of this
title;
(ii) in carrying out such care services to such
beneficiary, has undergone not less than four home
visits under paragraph (9)(A) of such section; and
(iii) has not been required by the Secretary to take
corrective action pursuant to paragraph (9)(C) of such
section.
(2) In carrying out this section, the Secretary may adjust
the matters required under an annual report or accounting under
subsection (a) with respect to a fiduciary whom the Secretary
determines to have effectively protected the interests of the
beneficiary over a sustained period.
Sec. 5510. Annual report
[The Secretary shall include in the Annual Benefits Report
of the Veterans Benefits Administration or the Secretary's
Annual Performance and Accountability Report] Not later than
July 1 of each year, the Secretary shall submit to the
Committees on Veterans' Affairs of the House of Representatives
and the Senate a separate report containing information
concerning fiduciaries who have been appointed to receive
payments for beneficiaries of the Department. As part of such
information, the Secretary shall separately set forth the
following:
(1) The number of beneficiaries in each category
(veteran, surviving spouse, child, adult disabled
child, or parent).
(2) The types of benefit being paid (compensation,
pension, dependency and indemnity compensation, death
pension or benefits payable to a disabled child under
chapter 18 of this title).
(3) The total annual amounts and average annual
amounts of benefits paid to fiduciaries for each
category and type of benefit.
(4) The number of fiduciaries who are the spouse,
parent, legal custodian, court-appointed fiduciary,
institutional fiduciary, custodian in fact, and
supervised direct payees.
(5) The number of cases in which the fiduciary was
changed by the Secretary because of a finding that
benefits had been misused.
(6) How such cases of misuse of benefits were
addressed by the Secretary.
(7) The final disposition of such cases of misuse of
benefits, including the number and dollar amount of any
benefits reissued to beneficiaries.
(8) The number of fiduciary cases referred to the
Office of the Inspector General and the nature of the
actions taken by the Inspector General.
(9) The total amount of money recovered by the
Government in cases arising from the misuse of benefits
by a fiduciary.
(10) Such other information as the Secretary
considers appropriate.
* * * * * * *
CHAPTER 61--PENAL AND FORFEITURE PROVISIONS
* * * * * * *
Sec. 6107. Reissuance of benefits
(a) Negligent Failure by Secretary.--(1) In any case in which
the negligent failure of the Secretary to investigate or
monitor a fiduciary results in misuse of benefits by the
fiduciary, the Secretary shall pay to the beneficiary or the
beneficiary's successor fiduciary an amount equal to the amount
of benefits that were so misused.
(2) There shall be considered to have been a negligent
failure by the Secretary to investigate and monitor a fiduciary
in the following cases:
(A) A case in which the Secretary failed to review a
fiduciary's accounting within 60 days of the date on
which that accounting is scheduled for review.
(B) A case in which the Secretary was notified of
allegations of misuse, but failed to act within 60 days
of the date of such notification to terminate the
fiduciary.
(C) In any other case in which actual negligence is
shown, including by the Secretary not acting in
accordance with section 5507 of this title.
(b) Reissuance of Misused Benefits in Other Cases.--(1) In
any case in which a fiduciary described in paragraph (2)
misuses all or part of an individual's benefit paid to such
fiduciary, the Secretary shall pay to the beneficiary or the
beneficiary's successor fiduciary an amount equal to the amount
of such benefit so misused.
(2) Paragraph (1) applies to a fiduciary that--
(A) is not an individual; or
(B) is an individual who, for any month during a
period when misuse occurs, serves 10 or more
individuals who are beneficiaries under this title.
(3) In any other case in which the Secretary obtains
recoupment from a fiduciary who has misused benefits, the
Secretary shall promptly remit payment of the recouped amounts
to the beneficiary or the beneficiary's successor fiduciary as
the case may be.
(c) Limitation on Total Amount Paid.--The total of the
amounts paid to a beneficiary (or a beneficiary's successor
fiduciary) under this section may not exceed the total benefit
amount misused by the fiduciary with respect to that
beneficiary.
(d) Recoupment of Amounts Reissued.--In any case in which the
Secretary reissues a benefit payment (in whole or in part)
under subsection (a) or (b), the Secretary shall make a good
faith effort to obtain recoupment from the fiduciary to whom
the payment was originally made.
* * * * * * *
PART V--BOARDS, ADMINISTRATIONS, AND SERVICES
* * * * * * *
CHAPTER 71--BOARD OF VETERANS' APPEALS
* * * * * * *
Sec. 7107. Appeals: dockets; hearings
(a)(1) Except as provided in paragraphs (2) and (3) and in
subsection (f), each case received pursuant to application for
review on appeal shall be considered and decided in regular
order according to its place upon the docket.
(2) A case referred to in paragraph (1) may, for cause shown,
be advanced on motion for earlier consideration and
determination. Any such motion shall set forth succinctly the
grounds upon which the motion is based. Such a motion may be
granted only--
(A) if the case involves interpretation of law of
general application affecting other claims;
(B) if the appellant is seriously ill or is under
severe financial hardship; or
(C) for other sufficient cause shown.
(3) A case referred to in paragraph (1) may be postponed for
later consideration and determination if such postponement is
necessary to afford the appellant a hearing.
(b) The Board shall decide any appeal only after affording
the appellant an opportunity for a hearing.
(c) A hearing docket shall be maintained and formal recorded
hearings shall be held by such member or members of the Board
as the Chairman may designate. Such member or members
designated by the Chairman to conduct the hearing shall, except
in the case of a reconsideration of a decision under section
7103 of this title, participate in making the final
determination of the claim.
(d)[(1) An appellant may request that a hearing before the
Board be held at its principal location or at a facility of the
Department located within the area served by a regional office
of the Department.] (1)(A) Upon request for a hearing, the
Board shall determine, for purposes of scheduling the hearing
for the earliest possible date, whether a hearing before the
Board will be held at its principal location or at a facility
of the Department or other appropriate Federal facility located
within the area served by a regional office of the Department.
The Board shall also determine whether to provide a hearing
through the use of the facilities and equipment described in
subsection (e)(1) or by the appellant personally appearing
before a Board member or panel.
(B) The Board shall notify the appellant of the
determinations of the location and type of hearing made under
subparagraph (A). Upon notification, the appellant may request
a different location or type of hearing as described in such
subparagraph. If so requested, the Board shall grant such
request and ensure that the hearing is scheduled at the
earliest possible date without any undue delay or other
prejudice to the appellant.
(2) A hearing to be held within an area served by a regional
office of the Department shall (except as provided in paragraph
(3)) be scheduled to be held in accordance with the place of
the case on the docket under subsection (a) relative to other
cases on the docket for which hearings are scheduled to be held
within that area.
(3) A hearing to be held within an area served by a regional
office of the Department may, for cause shown, be advanced on
motion for an earlier hearing. Any such motion shall set forth
succinctly the grounds upon which the motion is based. Such a
motion may be granted only--
(A) if the case involves interpretation of law of
general application affecting other claims;
(B) if the appellant is seriously ill or is under
severe financial hardship; or
(C) for other sufficient cause shown.
(e)(1) At the request of the Chairman, the Secretary may
provide suitable facilities and equipment to the Board or other
components of the Department to enable an appellant located at
a facility within the area served by a regional office to
participate, through voice transmission or through picture and
voice transmission, by electronic or other means, in a hearing
with a Board member or members sitting at the Board's principal
location.
[(2) When such facilities and equipment are available, the
Chairman may afford the appellant an opportunity to participate
in a hearing before the Board through the use of such
facilities and equipment in lieu of a hearing held by
personally appearing before a Board member or panel as provided
in subsection (d). Any such hearing shall be conducted in the
same manner as, and shall be considered the equivalent of, a
personal hearing. If the appellant declines to participate in a
hearing through the use of such facilities and equipment, the
opportunity of the appellant to a hearing as provided in such
subsection (d) shall not be affected.]
(2) Any hearing provided through the use of the facilities
and equipment described in paragraph (1) shall be conducted in
the same manner as, and shall be considered the equivalent of,
a personal hearing.
(f) Nothing in this section shall preclude the screening of
cases for purposes of--
(1) determining the adequacy of the record for
decisional purposes; or
(2) the development, or attempted development, of a
record found to be inadequate for decisional purposes.
* * * * * * *
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VETERANS BENEFITS ACT OF 2003
* * * * * * *
TITLE VII--OTHER MATTERS
* * * * * * *
SEC. 704. TEMPORARY AUTHORITY FOR PERFORMANCE OF MEDICAL DISABILITIES
EXAMINATIONS BY CONTRACT PHYSICIANS.
(a) Authority.--Using appropriated funds, other than funds
available for compensation and pension, the Secretary of
Veterans Affairs may provide for the conduct of examinations
with respect to the medical disabilities of applicants for
benefits under laws administered by the Secretary by persons
other than Department of Veterans Affairs employees. The
authority under this section is in addition to the authority
provided in section 504(b) of the Veterans' Benefits
Improvement Act of 1996 (Public Law 104-275; 38 U.S.C. 5101
note).
(b) Performance by Contract.--Examinations under the
authority provided in subsection (a) shall be conducted
pursuant to contracts entered into and administered by the
Under Secretary for Benefits.
(c) Expiration.--The authority in subsection (a) shall expire
on [December 31, 2015] December 31, 2017. No examination may be
carried out under the authority provided in that subsection
after that date.
(d) Licensure of Contract Physicians.--
(1) In general.--Notwithstanding any law regarding
the licensure of physicians, a physician described in
paragraph (2) may conduct an examination pursuant to a
contract entered into under subsection (b) at any
location in any State, the District of Columbia, or a
Commonwealth, territory, or possession of the United
States, so long as the examination is within the scope
of the authorized duties under such contract.
(2) Physician described.--A physician described in
this paragraph is a physician who--
(A) has a current unrestricted license to
practice the health care profession of the
physician;
(B) is not barred from practicing such health
care profession in any State, the District of
Columbia, or a Commonwealth, territory, or
possession of the United States; and
(C) is performing authorized duties for the
Department of Veterans Affairs pursuant to a
contract entered into under subsection (b).
[(d)] (e) Report.--Not later than four years after the date
of the enactment of this Act, the Secretary shall submit to
Congress a report on the use of the authority provided in
subsection (a). The Secretary shall include in the report an
assessment of the effect of examinations under that authority
on the cost, timeliness, and thoroughness of examinations with
respect to the medical disabilities of applicants for benefits
under laws administered by the Secretary.
* * * * * * *
----------
SECTION 504 OF THE VETERANS' BENEFITS IMPROVEMENT ACT OF 1996
SEC. 504 PILOT PROGRAM FOR USE OF CONTRACT PHYSICIANS FOR DISABILITY
EXAMINATIONS.
(a) Authority.--The Secretary of Veterans Affairs, acting
through the Under Secretary for Benefits, may conduct a pilot
program under this section under which examinations with
respect to medical disability of applicants for benefits under
laws administered by the Secretary that are carried out through
the Under Secretary for Benefits may be made by persons other
than employees of the Department of Veterans Affairs. Any such
examination shall be performed pursuant to contracts entered
into by the Under Secretary for Benefits with those persons.
(b) Limitation.--The Secretary may carry out the pilot
program under this section as follows:
(1) In fiscal years before fiscal year 2015, through
not more than 10 regional offices of the Department of
Veterans Affairs.
(2) In fiscal year 2015, through not more than 12
regional offices of the Department.
(3) In fiscal year 2016, through not more than 15
regional offices of the Department.
(4) In fiscal year 2017 and each fiscal year
thereafter, through such regional offices of the
Department as the Secretary considers appropriate.
(c) Licensure of Contract Physicians.--
(1) In general.--Notwithstanding any law regarding
the licensure of physicians, a physician described in
paragraph (2) may conduct an examination pursuant to a
contract entered into under subsection (a) at any
location in any State, the District of Columbia, or a
Commonwealth, territory, or possession of the United
States, so long as the examination is within the scope
of the authorized duties under such contract.
(2) Physician described.--A physician described in
this paragraph is a physician who--
(A) has a current unrestricted license to
practice the health care profession of the
physician;
(B) is not barred from practicing such health
care profession in any State, the District of
Columbia, or a Commonwealth, territory, or
possession of the United States; and
(C) is performing authorized duties for the
Department of Veterans Affairs pursuant to a
contract entered into under subsection (a).
[(c)] (d) Source of Funds.--Payments for contracts under the
pilot program under this section shall be made from amounts
available to the Secretary of Veterans Affairs for payment of
compensation and pensions.
[(d)] (e) Report to Congress.--Not later than three years
after the date of the enactment of this Act, the Secretary
shall submit to the Congress a report on the effect of the use
of the authority provided by subsection (a) on the cost,
timeliness, and thoroughness of medical disability
examinations.
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