SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES CODE.

    (a) Short Title.--This Act may be cited as the ``Veterans' 
Compensation and Readjustment Benefits Amendments of 1996''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment is expressed in terms of an amendment to a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of title 38, United States Code.

                TITLE I--VETERANS COMPENSATION BENEFITS

SEC. 101. PRESUMPTION THAT BRONCHIOLO-ALVEOLAR CARCINOMA IS SERVICE-
              CONNECTED.

    Section 1112(c)(2) is amended by adding at the end the following 
new subparagraph:
            ``(P) Bronchiolo-alveolar carcinoma.''.

SEC. 102. PRESUMPTION OF PERMANENT AND TOTAL DISABILITY FOR VETERANS 
              OVER AGE 65 WHO ARE NURSING HOME PATIENTS.

    Section 1502(a) is amended by inserting ``is 65 years of age or 
older and a patient in a nursing home or, regardless of age,'' after 
``such a person''.

SEC. 103. PILOT PROGRAM FOR USE OF CONTRACT PHYSICIANS FOR DISABILITY 
              EXAMINATIONS.

    (a) Authority.--The Secretary of Veterans Affairs 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 pursuant to contracts entered into 
with those persons.
    (b) Limitation.--The Secretary may carry out the pilot program 
under this section through not more than 10 regional offices of the 
Department of Veterans Affairs.
    (c) 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 examinations of applicants 
for benefits.
    (d) Report to Congress.--Not later than three years after the date 
of the enactment of this Act, the Secretary shall submit to 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.

SEC. 104. LIMITATION ON CLOTHING ALLOWANCE FOR INCARCERATED VETERANS.

    (a) Pro Rata Reduction.--Chapter 53 is amended by inserting after 
section 5313 the following new section:
``Sec. 5313A. Limitation on payment of clothing allowance to 
              incarcerated veterans
    ``In the case of a veteran who is incarcerated in a Federal, State, 
or local penal institution for a period in excess of 60 days and who is 
furnished clothing without charge by the institution, the amount of an 
annual clothing allowance payable to such veteran under section 1162 of 
this title shall be reduced on a pro rata basis for each day on which 
the veteran was so incarcerated during the 12-month period preceding 
the date on which payment of the allowance would be due. This section 
shall be carried out under regulations prescribed by the Secretary.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
5313 the following new item:

``5313A. Limitation on payment of clothing allowance to incarcerated 
                            veterans.''.

SEC. 105. EXTENSION OF VETERANS' CLAIMS ADJUDICATION COMMISSION.

    (a) Extension of Time for Submission of Final Report.--Section 
402(e)(2) of the Veterans' Benefits Improvements Act of 1994 (Public 
Law 103-446; 108 Stat. 4659) is amended by striking out ``Not later 
than 18 months after such date'' and inserting in lieu thereof ``Not 
later than December 31, 1996''.
    (b) Funding.--From amounts appropriated to the Department of 
Veterans Affairs for each of fiscal years 1996 and fiscal year 1997 for 
the payment of compensation and pension, the amount of $75,000 is 
hereby made available for the activities of the Veterans' Claims 
Adjudication Commission under title IV of the Veterans' Benefits 
Improvements Act of 1994 (Public Law 103-446; 108 Stat. 4659).

          TITLE II--EDUCATION AND OTHER READJUSTMENT BENEFITS

SEC. 201. PERIOD OF OPERATION FOR APPROVAL.

    (a) In General.--(1) Chapter 36 is amended--
            (A) by striking out section 3689; and
            (B) by striking out the item relating to section 3689 in 
        the table of sections at the beginning of chapter 36.
    (2) Subparagraph (C) of section 3680A(d)(2) is amended by striking 
out ``3689(b)(6)'' and inserting in lieu thereof ``3680A(g)''.
    (b) Disapproval of Enrollment in Certain Courses.--Section 3680A is 
amended by adding after subsection (d) the following new subsections:
    ``(e) The Secretary shall not approve the enrollment of an eligible 
veteran in a course not leading to a standard college degree offered by 
a proprietary profit or proprietary nonprofit educational institution 
when--
            ``(1) the educational institution has been operating for 
        less than two years;
            ``(2) the course is offered at a branch of the educational 
        institution and the branch has been operating for less than two 
        years; or
            ``(3) following either a change in ownership or a complete 
        move outside its original general locality the educational 
        institution does not retain substantially the same faculty, 
        student body, and courses, as determined in accordance with 
        regulations the Secretary shall prescribe, as before the change 
        in ownership or the move outside the general locality.
    ``(f) The Secretary shall not approve the enrollment of an eligible 
veteran in a course as a part of a program of education offered by an 
educational institution when the course is provided under contract by 
another educational institution or entity and--
            ``(1) the Secretary would be barred under subsection (e) 
        from approving the enrollment of an eligible veteran in the 
        course of the educational institution or entity providing the 
        course under contract; or
            ``(2) the educational institution or entity providing the 
        course under contract has not obtained approval for the course 
        under this chapter.
    ``(g) Notwithstanding subsections (e) and (f), the Secretary may 
approve the enrollment of an eligible veteran in a course approved 
under this chapter if the course is offered by an educational 
institution under contract with the Department of Defense or the 
Department of Transportation and is given on or immediately adjacent to 
a military base, Coast Guard station, National Guard facility, or 
facility of the Selected Reserve.''.
    (c) Approval of Accredited Courses.--Subsection (b) of section 3675 
is amended to read as follows:
    ``(b) As a condition of approval under this section, the State 
approving agency must find the following:
            ``(1) Adequate records, as prescribed by the State 
        approving agency, are kept by the educational institution to 
        show the student's progress and grades and that satisfactory 
        standards relating to progress and conduct are enforced.
            ``(2) The educational institution maintains a written 
        record of the previous education and training of the eligible 
        person or veteran that clearly indicates that appropriate 
        credit has been given by the educational institution for 
        previous education and training, with the training period 
        shortened proportionately.
            ``(3) The educational institution and its approved courses 
        meet the criteria of paragraphs (1), (2), and (3) of section 
        3676(c) of this title.''.

SEC. 202. ELIMINATION OF DISTINCTION BETWEEN OPEN CIRCUIT TV AND 
              INDEPENDENT STUDY.

    (a) Veterans' Educational Assistance Program.--Subsection (f) of 
section 3482 is amended by striking out ``in part''.
    (b) Survivors' and Dependents' Educational Assistance.--Section 
3523 is amended--
            (1) in subsection (a)(4), by inserting ``(including open 
        circuit television)'' after ``independent study program'' the 
        second place it appears; and
            (2) in subsection (c), by striking out ``radio'' and all 
        that follows through the end and inserting in lieu thereof 
        ``radio.''.
    (c) Administration of Educational Benefits.--Subsection (c) of 
section 3680A is amended by striking out ``radio'' and all that follows 
through the end and inserting in lieu thereof ``radio.''.

SEC. 203. MEDICAL QUALIFICATIONS FOR FLIGHT TRAINING.

    (a) Chapter 30 and 32 Programs.--Sections 3034(d)(2) and 3241(b)(2) 
are each amended by inserting before the semicolon at the end the 
following: ``on the first day of such training and within 60 days after 
successfully completing such training''.
    (b) Selected Reserve.--Paragraph (2) of section 16136(c) of title 
10, United States Code, is amended by inserting before the period at 
the end the following: ``on the first day of such training and within 
60 days after successfully completing such training''.

SEC. 204. COOPERATIVE PROGRAMS.

    (a) Chapter 30.--Section 3032 of chapter 30 is amended by striking 
out subsection (d) and redesignating subsections (e) and (f) as 
subsections (d) and (e), respectively.
    (b) Chapter 32.--Section 3231 of chapter 32 is amended by striking 
out subsection (d) and redesignating subsections (e) and (f) as 
subsections (d) and (e), respectively.
    (c) Chapter 35.--Subsection (b) of section 3532 is amended by 
striking out ``$327'' and inserting in lieu thereof ``$404''.
    (d) Chapter 106.--Section 16131 of title 10, United States Code, is 
amended--
            (1) by striking out subsection (e) and redesignating 
        subsections (f), (g), (h), (i), and (j) as subsections (e), 
        (f), (g), (h), and (i), respectively; and
            (2) in subsection (b)(1), by striking out ``(g)'' and 
        inserting in lieu thereof ``(f)''.

SEC. 205. EXTENSION OF ENHANCED LOAN ASSET SALE AUTHORITY.

    Paragraph (2) of section 3720(h) is amended by striking out 
``December 31, 1996'' and inserting in lieu thereof ``December 31, 
1997''.

SEC. 206. EXTENSION OF AUTHORITY FOR THE HOMELESS VETERANS' 
              REINTEGRATION PROJECTS.

    (a) In General.--Paragraph (1) of section 738(e) of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11448(e)(1)) is amended by 
adding at the end the following:
            ``(E) $10,000,000 for fiscal year 1997.
            ``(F) $10,000,000 for fiscal year 1998.
            ``(G) $10,000,000 for fiscal year 1999.''.
    (b) Repeal of Certain Extension.--Paragraph (2) of section 102(d) 
of the Act entitled ``An Act to amend title 38, United States Code, to 
extend the authority of the Secretary of Veterans Affairs to carry out 
certain programs and activities, to require certain reports from the 
Secretary of Veterans Affairs, and for other purposes'', approved 
February 13, 1996 (Public Law 104-110; 110 Stat. 769), is repealed, and 
the provisions of section 741 of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11450) are amended so as to appear as in 
effect immediately before the enactment of Public Law 104-110.

                        TITLE III--OTHER MATTERS

SEC. 301. REPAIR AND LONG-TERM MAINTENANCE OF WAR MEMORIALS.

    Section 5(b)(2) of the Act of March 4, 1923 (36 U.S.C. 125(b)(2)), 
is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following:
    ``(B) In assuming responsibility for a war memorial under paragraph 
(1), the Commission may enter into arrangements with the sponsors of 
the memorial to provide for the repair or long-term maintenance of the 
memorial. Any funds transferred to the Commission for the purpose of 
this subparagraph shall, in lieu of subparagraph (A), be deposited by 
the Commission in the fund established by paragraph (3).
    ``(3)(A) There is established in the Treasury a fund which shall be 
available to the Commission for expenses for the maintenance and repair 
of memorials with respect to which the Commission enters into 
arrangements under paragraph (2)(B). The fund shall consist of (i) 
amounts deposited, and interest and proceeds credited, under 
subparagraph (B), and (ii) obligations obtained under subparagraph (C).
    ``(B) The Commission shall deposit in the fund such amounts from 
private contributions as may be accepted under paragraph (2)(B). The 
Secretary of the Treasury shall credit to the fund the interest on, and 
the proceeds from sale or redemption of, obligations held in the fund.
    ``(C) The Secretary of the Treasury shall invest any portion of the 
fund that, as determined by the Commission, is not required to meet 
current expenses. Each investment shall be made in an interest bearing 
obligation of the United States or an obligation guaranteed as to 
principal and interest by the United States that, as determined by the 
Commission, has a maturity suitable for the fund.''.

SEC. 302. BURIAL BENEFITS FOR CERTAIN VETERANS WHO DIE IN STATE NURSING 
              HOMES.

    Subsection (a) of section 2303 is amended to read as follows:
    ``(a)(1) When a veteran dies in a facility described in paragraph 
(2), the Secretary shall--
            ``(A) pay the actual cost (not to exceed $300) of the 
        burial and funeral or, within such limits, may make contracts 
        for such services without regard to the laws requiring 
        advertisement for proposals for supplies and services for the 
        Department; and
            ``(B) when such a death occurs in a State, transport the 
        body to the place of burial in the same or any other State.
    ``(2) A facility described in this paragraph is--
            ``(A) a Department facility (as defined in section 1701(4) 
        of this title) to which the deceased was properly admitted for 
        hospital, nursing home, or domiciliary care under section 1710 
        or 1711(a) of this title; or
            ``(B) an institution at which the deceased veteran was, at 
        the time of death, receiving--
                    ``(i) hospital care in accordance with section 1703 
                of this title;
                    ``(ii) nursing home care under section 1720 of this 
                title; or
                    ``(iii) nursing home care pursuant to payments made 
                under section 1741 of this title.''.

            Passed the House of Representatives July 16, 1996.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.
TABLE OF CONTENTS: 
     Title I:  Veterans Compensation Benefits 
     Title II:  Education and Other Readjustment Benefits 
     Title III:  Other Matters 
Veterans' Compensation and Readjustment Benefits Amendments of 1996 - Title I:  Veterans Compensation Benefits - Adds bronchiolo-alveolar carcinoma to the list of diseases that will be considered service-connected (and therefore compensable) when occurring in a radiation-exposed veteran. 
(Sec. 102) Considers any veteran age 65 or older and a patient in a nursing home as totally and permanently disabled for purposes of eligibility for veterans' disability compensation. 
(Sec. 103) Authorizes the Secretary of Veterans Affairs to conduct a pilot program under which veterans' medical disability evaluation examinations may be made under contract by persons other than employees of the Department of Veterans Affairs. 
(Sec. 104) Reduces the annual clothing allowance for veterans who are incarcerated and furnished clothing by the penal institution. 
(Sec. 105) Amends the Veterans' Benefits Improvement Act of 1994 to extend the due date for a final report from the Veterans' Claims Adjudication Commission concerning the disposition of claims for veterans' benefits.  Provides funding. 
Title II:  Education and Other Readjustment Benefits
 - Repeals provisions prohibiting the Secretary from approving the enrollment of an eligible veteran or other person in a course offered at an educational institution when such institution has been in operation for less than two years.  Prohibits the Secretary from approving enrollment in a course not leading to a standard college degree when: (1) the institution or branch thereof offering the course has been operating for less than two years; or (2) following either a change in ownership or a move, the institution does not retain substantially the same faculty, student body, and courses.  Provides for the approval or disapproval of courses offered by an institution under contract. Revises approval requirements concerning the adequacy of student records. 
(Sec. 202) Eliminates the distinction between the pursuit of education by open circuit television and independent study for purposes of the computation of the educational assistance allowance provided. 
(Sec. 203) Authorizes the Secretary to approve the pursuit of flight training if, among other requirements, the individual possesses a valid private pilot's license and meets the medical requirements for a commercial pilot's license on the first day of such training and within 60 days after successfully completing such training. 
(Sec. 204) Repeals a provision limiting the monthly educational assistance allowance payable to an individual pursuing a cooperative program.  Increases the monthly educational allowance provided to individuals pursuing training in a business or industrial establishment as part of a full-time education program. 
(Sec. 205) Extends through 1997 the authority of the Secretary to issue certificates or other securities evidencing an interest in a pool of veterans' mortgage loans guaranteed by the Department. 
(Sec. 206) Amends the Stewart B. McKinney Homeless Assistance Act to extend through FY 1999 the authority for veterans' reintegration projects. 
Title III:  Other Matters
 - Authorizes the American Battle Monuments Commission to enter into arrangements for the repair and long-term maintenance of war memorials.  Establishes in the Treasury a fund for such repair and maintenance expenses. 
(Sec. 302) Provides burial benefits when a veteran dies at an institution at which such veteran was receiving Department-authorized hospital or nursing home care.
Veterans' Compensation and Readjustment Benefits Amendments of 1996