SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans' Survivor Benefits Act of 
2003''.

SEC. 2. REPEAL OF TWO-YEAR LIMITATION ON PAYMENT OF ACCRUED BENEFITS AT 
              DEATH.

    Subsection (a) of section 5121 of title 38, United States Code, is 
amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``for a period not to exceed two years'';
            (2) in paragraph (4), by striking ``and'' at the end;
            (3) by redesignating paragraph (5) as paragraph (6); and
            (4) by inserting after paragraph (4) the following new 
        paragraph (5):
            ``(5) Upon the death of a child claiming benefits under 
        chapter 18 of this title, to the surviving parents; and''.

SEC. 3. CONTINUATION OF CLAIM AND SUBSTITUTION OF PARTIES UPON DEATH OF 
              APPLICANT FOR BENEFITS.

    (a) In General.--Chapter 51 of title 38, United States Code, is 
amended by adding at the end the following new section:
``Sec. 5127. Deaths of applicants for benefits: continuation of claims 
              and substitution of parties
    ``(a) In the case of a claim for compensation, dependency and 
indemnity compensation, or pension that was submitted to the Secretary 
by a claimant who dies before a decision on that claim becomes final in 
accordance with section 7291 of this title in which benefits are not 
payable based on existing ratings or decisions or those based on 
evidence in the file at the date of death under section 5121 of this 
title, the claim shall not be extinguished if, within the time period 
prescribed in subsection (c)(2), an eligible person submits an 
application to the Secretary, or submits a motion to a court with 
jurisdiction over the claim, to be substituted as the claimant in order 
to continue prosecution of the claim. The Secretary or the court, as 
the case may be, shall approve any such application submitted by an 
eligible person.
    ``(b)(1) For purposes of this section and section 7270 of this 
title, the term `eligible person' means any of the following 
individuals:
            ``(A) The surviving spouse.
            ``(B) The custodian of a surviving child (including a 
        surviving child described by section 101(4)(A)(ii) of this 
        title who is incapable of continuing prosecution of a claim) 
        or, in the case of a surviving child described by section 
        101(4)(A)(iii) of this title, the surviving child.
            ``(C) A dependent parent.
            ``(D) In the case of a child claiming benefits under 
        chapter 18 of this title, a surviving parent.
    ``(2) In a case where more than one individual referred to in 
subparagraph (A) through (C) of paragraph (1) submits an application or 
motion under subsection (a) to be substituted as a claimant, the 
eligible person shall be determined in the order listed in such 
subparagraphs. In the case of individuals submitting an application or 
motion under subsection (a) who are specified in the same subparagraph 
of paragraph (1), the eligible person shall be the first in time to 
submit such application or motion.
    ``(c)(1) Upon being notified of the death of a claimant, the 
Secretary shall send a notice to the eligible person shown in the 
record, or otherwise to the decedent's last known address, informing 
that the claim will be dismissed unless an application for substitution 
as the claimant is received by the Secretary within the time prescribed 
in paragraph (2).
    ``(2) An application under this section for substitution as the 
claimant on a claim must be filed not later than the later of--
            ``(A) the end of the 1-year period beginning on the date of 
        the claimant's death;
            ``(B) the end of the 6-month period beginning on the date 
        of the notification under paragraph (1); or
            ``(C) the end of the 3-month period beginning on the date 
        of the notification of an adverse decision under section 5121 
        of this title.
    ``(d) A person named as a substitute claimant under subsection (a) 
shall be accorded all the rights and responsibilities of the original 
claimant.
    ``(e) If benefits are payable as a result of a decision on a claim 
by a substituted claimant named under this section, such benefits shall 
be paid as follows:
            ``(1) If the deceased claimant was claiming benefits as a 
        veteran, to the living person first listed below:
                    ``(A) The veteran's spouse.
                    ``(B) The veteran's children (in equal shares).
                    ``(C) The veteran's dependent parents (in equal 
                shares).
            ``(2) If the deceased claimant was claiming benefits as the 
        surviving spouse of a veteran, to the surviving children of the 
        deceased veteran (in equal shares).
            ``(3) If the deceased claimant was claiming benefits under 
        chapter 18 of this title as the child of a veteran, to the 
        surviving parents of the child (in equal shares).
    ``(f) Upon the appointment of a substitute claimant, the Secretary 
shall notify the person substituted as the claimant as to the evidence 
or information necessary to substantiate the pending claim. If such 
information or evidence is not received within one year from the date 
of such notification, no benefits may be paid on the claim.
    ``(g) For purposes of section 5112(b) of this title, the term 
`payee' as used in such section shall be deemed to include a deceased 
claimant for whom a substitute claimant is appointed under this 
section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``5127. Deaths of applicants for benefits: continuation of claims and 
                            substitution of parties.''.

SEC. 4. SUBSTITUTION OF SURVIVOR IN CASES PENDING BEFORE A COURT.

    (a) In General.--Subchapter II of chapter 72 of title 38, United 
States Code, is amended by adding at the end the following new section:
``Sec. 7270. Cases pending on death of claimant: substitution of 
              parties
    ``(a) If a claimant dies before filing an appeal under section 7266 
of this title, an eligible person may file an appeal as a substituted 
claimant for the decedent within the time period specified under 
section 7266 of this title. If an appellant or respondent dies while a 
claim is pending before a court and before a final decision is rendered 
under section 7291 of this title, an eligible person may move the court 
for substitution of claimant in the pending action. Any such motion 
filed with the United States Court of Appeals for Veterans Claims or to 
the United States Court of Appeals for the Federal Circuit must be 
filed within the time period prescribed by sections 7266 and 7292 of 
this title, respectively, or within one year of the claimant's death, 
whichever is earlier.
    ``(b) In any case in which a final decision under section 7291 of 
this title has not been made, an eligible person may move a court to be 
substituted is the appellant (or respondent as the case may be) for an 
appellant or respondent who dies while an appeal is pending. The court 
shall, upon filing of a timely motion, appoint an eligible person to 
substitute as the claimant to continue prosecution or defense of that 
claim.
    ``(c) Nothing in this section shall require or authorize 
substitution for a deceased claimant if a final decision under section 
7291 of this title has been entered before the filing of a motion for 
substitution.
    ``(d) In this section, the term `eligible person' has the meaning 
given that term in section 5127(b) of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``7270. Cases pending on death of claimant: substitution of parties.''.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall apply to deaths occurring on 
or after the date of the enactment of this Act.
Veterans' Survivor Benefits Act of 2003 - Repeals the limitation (benefits due and unpaid for not to exceed two years) on the accrued benefits required to be paid by the Secretary of Veterans Affairs upon the death of a veteran or other beneficiary. Provides that, upon the death of a child claiming benefits as a child of a Vietnam veteran, such benefits shall be paid to the surviving parents.

Authorizes the substitution of any of the following parties in the case of a veteran's claim for benefits provided through the Department of Veterans Affairs when the original claimant dies while the claim is pending: (1) the surviving spouse; (2) the custodian of a surviving minor or incapable child; (3) a child between 18 and 21 years of age pursuing a program of education; (4) a dependent parent; or (5) in the case of the death of a child claiming benefits as a child of a Vietnam veteran, a surviving parent.

Authorizes the substitution of the above eligible parties in cases pending before a U.S. Circuit Court or the U.S. Court of Appeals for Veterans Claims.
A bill to repeal the two-year limitation on the payment of accrued benefits that are due and unpaid by the Secretary of Veterans Affairs upon the death of a veteran or other beneficiary under laws administered by the Secretary, to allow for substitution of parties in the case of a claim for benefits provided by the Secretary when the applicant for such benefits dies while the claim in pending, and for other purposes.