SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Programs Amendments of 
1996''.

SEC. 2. PRESUMPTION THAT BRONCHIOLO-ALVEOLAR CARCINOMA IS SERVICE-
              CONNECTED.

    Section 1112(c)(2) of title 38, United States Code, is amended by 
adding at the end the following new subparagraph:
            ``(P) Bronchiolo-alveolar carcinoma.''.

SEC. 3. PRESUMPTION OF PERMANENT AND TOTAL DISABILITY FOR VETERANS OVER 
              AGE 65 WHO ARE NURSING HOME PATIENTS.

    Section 1502(a) of title 38, United States Code, 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. 4. 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 timeliness and thoroughness of medical disability 
examinations.

SEC. 5. INCREASE IN AUTOMOBILE ALLOWANCE.

    (a) In General.--Section 3902(a) of title 38, United States Code, 
is amended by striking out ``$5,500'' and inserting in lieu thereof 
``$6,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to purchases of automobiles and other conveyances on 
or after the date of the enactment of this Act.

SEC. 6. EFFECTIVE DATE OF DISCONTINUANCE OF CERTAIN VETERANS' BENEFITS 
              BY REASON OF DEATH OF RECIPIENT.

    (a) In General.--Section 5112(b)(1) of title 38, United States 
Code, is amended to read as follows:
            ``(1) by reason of--
                    ``(A) the marriage or remarriage of the payee, 
                shall be the last day of the month before the month 
                during which such marriage or remarriage occurs; and
                    ``(B) the death of the payee, shall be (i) the last 
                day of the month before the month during which the 
                death occurs, or (ii) in the case of a payee who was in 
                receipt of compensation or pension and who has a 
                surviving spouse, the date on which the death 
                occurs;''.
    (b) Payment of Benefit for Final Month.--Section 5112 of such title 
is further amended by adding at the end the following new subsection:
    ``(d) In the case of discontinuance of payment of compensation or 
pension covered by subsection (b)(1)(B)(ii), the payment for the final 
calendar month (or any portion thereof) for which such benefit is 
payable shall (notwithstanding any other provision of law) be payable 
to the surviving spouse.''.
    (c) Commencement Date for DIC.--Section 5110(d) of such title is 
amended by adding at the end the following new paragraph:
    ``(3) Notwithstanding paragraph (1), the effective date of an award 
of dependency and indemnity compensation for which application is 
received within one year from the date of death shall, in the case of a 
surviving spouse to whom an amount is payable pursuant to section 
5111(d) of this title, be the day following the date on which the death 
occurred.''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to the death of compensation and pension recipients 
occurring after October 1, 1998.

SEC. 7. INCREASE IN PERIOD FOR WHICH ACCRUED BENEFITS PAYABLE.

    Section 5121(a) of title 38, United States Code, is amended by 
striking out ``one year'' in the matter preceding paragraph (1) and 
inserting in lieu thereof ``two years''.

SEC. 8. LIMITATION ON CLOTHING ALLOWANCE FOR INCARCERATED VETERANS.

    (a) Pro Rata Reduction.--Chapter 53 of title 38, United States 
Code, 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. 9. 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.''.
Veterans Programs Amendments of 1996 - 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. 3) 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. 4) 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.  Requires the Secretary to report to the Congress on the program's effect on the timeliness and thoroughness of such examinations. 
(Sec. 5) Increases from $5,500 to $6,000 the authorized automobile allowance provided to a disabled veteran when used to purchase an automobile containing adaptive equipment. 
(Sec. 6) Provides the effective dates for:  (1) the discontinuance of veterans' disability compensation, dependency and indemnity compensation, or pension benefits due to the remarriage of the beneficiary or the death of the payee; and (2) the award of DIC for which application is received within one year from the date of death of a veteran. 
(Sec. 7) Increases from one to two years after the death of a primary beneficiary the authorized period for the payment of certain accrued veterans' benefits. 
(Sec. 8) Reduces on a prorated basis the annual clothing allowance payable to certain disabled veterans who are incarcerated for a period in excess of 60 days and furnished clothing without charge by the penal institution. 
(Sec. 9) Authorizes the American Battle Monuments Commission to enter into arrangements for the repair and long-term maintenance of war memorials for which the Commission assumes responsibility. Establishes in the Treasury a fund for such repair and maintenance expenses.
Veterans Programs Amendments of 1996