![](media/image1.jpeg){width="6.916666666666667in"
height="1.1159722222222221in"}

# Legislative Bulletin...................................................May 22, 2006

> **Contents:**
>
> **S. 1235** --- Veterans Benefits Improvement Act of 2005

S. 1235 --- Veterans' Housing Opportunity and Benefits Improvement Act
of 2006 --- *as amended* (Sen. Craig, R-ID)

**[Order of Business]{.underline}**: The bill is scheduled for
consideration on Monday, May 22, 2006, under a motion to suspend the
rules and pass the bill, *[as amended]{.underline}*.

**Note:** S. 1235 includes the text of the following bills, previously
considered by the House:

> H.R. 2046, as amended, passed the House by a voice vote on May 23,
> 2005;

H.R. 3665, as amended, passed the House by a voice vote on November 10,
2005; and

H.R. 1220, as amended, passed the House by a voice vote on July 13,
2005.

To view the previous RSC Legislative Bulletins on these bills, please
view the RSC website, 2005 Legislative Bulletin page:
[[http://www.house.gov/pence/rsc/lgbullettins05.shtml]{.underline}](http://www.house.gov/pence/rsc/lgbullettins05.shtml).

**[Summary]{.underline}**: S. 1235 makes changes to chapters 19 and 37
of title 38 of the U.S. Code dealing with Veterans' Insurance, and
Housing and Small Business Loans respectively.

-   Authorizes a 5-year pilot program with two types of loans to provide
    housing assistance to disabled veterans residing temporarily in
    housing owned by a family member to adapt the homes to be
    accessible. The first type of loan is for up to \$14,000 for those
    servicemembers with locomotion disabilities. The second type of loan
    is for up to \$2,000 for servicemembers who are blind or who what
    lost the use of both hands. Funds to pay for the pilot program would
    come from an increase of five basis points in the funding fee for
    second and subsequent use of the VA home loan guarantee (with no
    money down) through September 30, 2007;

-   Extends retroactively to December 10, 2004, the home grants noted
    above to active servicemembers as well as to veterans;

-   Allows the VA to adjust the rate increase cap on Veterans' Affairs
    hybrid Adjustable Rate Mortgages, thereby removing the 1% cap;

```{=html}
<!-- -->
```
-   **Makes permanent the home loan pilot program for Native Americans
    living on trust lands.** The pilot program was initially authorized
    from FY93 through FY97, Congress has extended this program three
    times and it is currently set to expire December 31, 2008. These
    loans to Native Americans are extended to the servicemember's
    spouse. (According to the Senate committee report, Native Americans
    have difficulty acquiring free market home loans because homes on
    trust lands cannot be repossessed if the borrower defaults on the
    loan.)

```{=html}
<!-- -->
```
-   Requires the Assistant Secretary of Labor for Veterans' Employment
    and Training to furnish information to employers regarding training
    and skills of veterans and disabled veterans, and the advantages of
    hiring veterans and disabled veterans and makes certain
    modifications to a currently existing advisory committee to help in
    these duties;

-   Reauthorizes the Homeless Veterans Reintegration Program for FY07
    through FY09, at \$50 million per year (\$150 million total);

```{=html}
<!-- -->
```
-   Upon enactment of this bill, extends free post-separation
    Servicemembers Group Life Insurance (SGLI) coverage for totally
    disabled veterans from one to two years through September 30, 2011.
    For those separating on or after October 1, 2011, free
    post-separation coverage would be reduced to 18 months. After that,
    the veteran can convert to either Veterans' Group Life Insurance
    (VGLI) or a commercial policy;

-   Amends the Servicemembers Civil Relief Act to limit premium
    increases on reinstated health insurance coverage for servicemembers
    who are released from active duty;

-   Amends the Uniformed Services Employment and Reemployment Rights Act
    to preserve employer-sponsored health plan reinstatement rights for
    certain Reserve component members who acquire TRICARE eligibility
    prior to entering active duty;

```{=html}
<!-- -->
```
-   Codifies a VA rule determining that atherosclerotic heart disease,
    hypertensive vascular disease, hypertensive heart disease and their
    complications; and stroke and its complications should be added to a
    list of presumptive disease arising from being a prisoner of war for
    30 days or more;

-   Revives and extends through December 31, 2009, the Secretary's
    reporting requirements on awards given to individuals who the
    Secretary determines were deprived of benefits by federal employees;
    and

```{=html}
<!-- -->
```
-   According to the committee, the bill clarifies "amendments to
    Traumatic Injury Protection plan to more clearly specify the
    responsibilities of the different service branches, and conform the
    wording to match title 38 drafting. This provision isn't intended to
    make any substantive change in current law."

**[Committee Action]{.underline}**: S. 1235 was received in the House on
September 29, 2006, and referred to the House Committee on Veterans'
Affairs which took no official action.

**[Cost to Taxpayers]{.underline}**: CBO estimates that the bill would
cost \$95 million in 2006, and \$200 million between 2006 and 2010.
Direct spending would be increased by less than \$500,000 in 2006,
decreased by less than \$500,000 between 2006 and 2010, and decreased by
\$2 million between 2006 and 2015.

**[Does the Bill Expand the Size and Scope of the Federal
Government?]{.underline}**: Yes, the bill makes a pilot program
permanent.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-Sector Mandates?]{.underline}**: Yes, according to CBO, the bill
creates both intergovernmental and private-sector mandates, though they
do not rise to the annual threshold under UMRA, which is \$64 million
and \$128 million respectively in 2006.

**[RSC Staff Contact]{.underline}**: Marcus Kelley;
<marcus.kelley@mail.house.gov>; 202-226-9717