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[109th Congress Public Law 461]
[From the U.S. Government Printing Office]

[DOCID: f:publ461.109]

[[Page 120 STAT. 3403]]

Public Law 109-461
109th Congress

                                 An Act

 
To amend title 38, United States Code, to repeal certain limitations on 
      attorney representation of claimants for benefits under laws 
administered by the Secretary of Veterans Affairs, to expand eligibility 
 for the Survivors' and Dependents' Educational Assistance Program, to 
otherwise improve veterans' benefits, memorial affairs, and health-care 
programs, to enhance information security programs of the Department of 
 Veterans Affairs, and for other purposes. <<NOTE: Dec. 22, 2006 -  [S. 
                                3421]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Veterans 
Benefits, Health Care, and Information Technology Act of 2006.>> 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 38 USC 101 note.>> Short Title.--This Act may be cited 
as the ``Veterans Benefits, Health Care, and Information Technology Act 
of 2006''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.

                TITLE I--ATTORNEY REPRESENTATION MATTERS

Sec. 101. Agent or attorney representation in veterans benefits cases 
           before the Department of Veterans Affairs.

                        TITLE II--HEALTH MATTERS

Sec. 201. Additional mental health providers.
Sec. 202. Pay comparability for the Chief Nursing Officer, Office of 
           Nursing Services.
Sec. 203. Improvement and expansion of mental health services.
Sec. 204. Disclosure of medical records.
Sec. 205. Expansion of telehealth services.
Sec. 206. Strategic plan for long-term care.
Sec. 207. Blind rehabilitation outpatient specialists.
Sec. 208. Extension of certain compliance reports.
Sec. 209. Parkinson's Disease research, education, and clinical centers 
           and multiple sclerosis centers of excellence.
Sec. 210. Repeal of term of office for the Under Secretary for Health 
           and the Under Secretary for Benefits.
Sec. 211. Modifications to State home authorities.
Sec. 212. Office of Rural Health.
Sec. 213. Outreach program to veterans in rural areas.
Sec. 214. Pilot program on improvement of caregiver assistance services.
Sec. 215. Expansion of outreach activities of Vet Centers.
Sec. 216. Clarification and enhancement of bereavement counseling.
Sec. 217. Funding for Vet Center program.

                      TITLE III--EDUCATION MATTERS

Sec. 301. Expansion of eligibility for Survivors' and Dependents' 
           Educational Assistance program.
Sec. 302. Restoration of lost entitlement for individuals who 
           discontinue a program of education because of being ordered 
           to full-time National Guard duty.
Sec. 303. Exception for institutions offering Government-sponsored 
           nonaccredited courses to requirement of refunding unused 
           tuition.

[[Page 120 STAT. 3404]]

Sec. 304. Extension of work-study allowance.
Sec. 305. Deadline and extension of requirement for report on 
           educational assistance program.
Sec. 306. Report on improvement in administration of educational 
           assistance benefits.
Sec. 307. Technical amendments relating to education laws.

        TITLE IV--NATIONAL CEMETERY AND MEMORIAL AFFAIRS MATTERS

Sec. 401. Provision of Government memorial headstones or markers and 
           memorial inscriptions for deceased dependent children of 
           veterans whose remains are unavailable for burial.
Sec. 402. Provision of Government markers for marked graves of veterans 
           at private cemeteries.
Sec. 403. Eligibility of Indian tribal organizations for grants for the 
           establishment of veterans cemeteries on trust lands.
Sec. 404. Removal of remains of Russell Wayne Wagner from Arlington 
           National Cemetery.

               TITLE V--HOUSING AND SMALL BUSINESS MATTERS

Sec. 501. Residential cooperative housing units.
Sec. 502. Department of Veterans Affairs goals for participation by 
           small businesses owned and controlled by veterans in 
           procurement contracts.
Sec. 503. Department of Veterans Affairs contracting priority for 
           veteran-owned small businesses.

                TITLE VI--EMPLOYMENT AND TRAINING MATTERS

Sec. 601. Training of new disabled veterans' outreach program 
           specialists and local veterans' employment representatives by 
           NVTI required.
Sec. 602. Rules for part-time employment for disabled veterans' outreach 
           program specialists and local veterans' employment 
           representatives.
Sec. 603. Performance incentive awards for employment service offices.
Sec. 604. Demonstration project on credentialing and licensure of 
           veterans.
Sec. 605. Department of Labor implementation of regulations for priority 
           of service.

                 TITLE VII--HOMELESS VETERANS ASSISTANCE

Sec. 701. Reaffirmation of national goal to end homelessness among 
           veterans.
Sec. 702. Sense of Congress on the response of the Federal Government to 
           the needs of homeless veterans.
Sec. 703. Authority to make grants for comprehensive service programs 
           for homeless veterans.
Sec. 704. Extension of treatment and rehabilitation for seriously 
           mentally ill and homeless veterans.
Sec. 705. Extension of authority for transfer of properties obtained 
           through foreclosure of home mortgages.
Sec. 706. Extension of funding for grant program for homeless veterans 
           with special needs.
Sec. 707. Extension of funding for homeless veteran service provider 
           technical assistance program.
Sec. 708. Additional element in annual report on assistance to homeless 
           veterans.
Sec. 709. Advisory Committee on Homeless Veterans.
Sec. 710. Rental assistance vouchers for Veterans Affairs supported 
           housing program.

                    TITLE VIII--CONSTRUCTION MATTERS

             Subtitle A--Construction and Lease Authorities

Sec. 801. Authorization of fiscal year 2006 major medical facility 
           projects.
Sec. 802. Extension of authorization for certain major medical facility 
           construction projects previously authorized in connection 
           with Capital Asset Realignment Initiative.
Sec. 803. Authorization of fiscal year 2007 major medical facility 
           projects.
Sec. 804. Authorization of advance planning and design for a major 
           medical facility, Charleston, South Carolina.
Sec. 805. Authorization of fiscal year 2006 major medical facility 
           leases.
Sec. 806. Authorization of fiscal year 2007 major medical facility 
           leases.
Sec. 807. Authorization of appropriations.

                  Subtitle B--Facilities Administration

Sec. 811. Director of Construction and Facilities Management.
Sec. 812. Increase in threshold for major medical facility projects.

[[Page 120 STAT. 3405]]

Sec. 813. Land conveyance, city of Fort Thomas, Kentucky.

          Subtitle C--Reports on Medical Facility Improvements

Sec. 821. Report on option for medical facility improvements in San 
           Juan, Puerto Rico.
Sec. 822. Business plans for enhanced access to outpatient care in 
           certain rural areas.
Sec. 823. Report on option for construction of Department of Veterans 
           Affairs Medical Center in Okaloosa County, Florida.

                 TITLE IX--INFORMATION SECURITY MATTERS

Sec. 901. Short title.
Sec. 902. Department of Veterans Affairs information security programs 
           and requirements.
Sec. 903. Information security education assistance programs.

                         TITLE X--OTHER MATTERS

Sec. 1001. Notice to congressional veterans committees of certain 
           transfers of funds.
Sec. 1002. Clarification of correctional facilities covered by certain 
           provisions of law.
Sec. 1003. Extension of authority for health care for participation in 
           DOD chemical and biological warfare testing.
Sec. 1004. Technical and clerical amendments.
Sec. 1005. Codification of cost-of-living adjustment provided in Public 
           Law 109-361.
Sec. 1006. Coordination of provisions with Veterans Programs Extension 
           Act of 2006.

SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, 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--ATTORNEY REPRESENTATION MATTERS

SEC. 101. AGENT OR ATTORNEY REPRESENTATION IN VETERANS BENEFITS CASES 
            BEFORE THE DEPARTMENT OF VETERANS AFFAIRS.

    (a) Qualifications and Standards of Conduct for Individuals 
Recognized as Agents or Attorneys.--
            (1) Additional qualifications and standards for agents and 
        attorneys generally.--Subsection (a) of section 5904 is 
        amended--
                    (A) by inserting ``Recognition.--(1)'' after 
                ``(a)'';
                    (B) by striking ``The Secretary may recognize'' and 
                inserting ``Except as provided in paragraph (4), the 
                Secretary may recognize'';
                    (C) by striking the second sentence; and
                    (D) by adding at the end the following new 
                paragraphs:

    ``(2) <<NOTE: Regulations.>> The Secretary shall prescribe in 
regulations (consistent with the Model Rules of Professional Conduct of 
the American Bar Association) qualifications and standards of conduct 
for individuals recognized under this section, including a requirement 
that, as a condition of being so recognized, an individual must--
            ``(A) show that such individual is of good moral character 
        and in good repute, is qualified to render claimants valuable 
        service, and is otherwise competent to assist claimants in 
        presenting claims;

[[Page 120 STAT. 3406]]

            ``(B) have such level of experience or specialized training 
        as the Secretary shall specify; and
            ``(C) <<NOTE: Certification.>> certify to the Secretary that 
        the individual has satisfied any qualifications and standards 
        prescribed by the Secretary under this section.

    ``(3) <<NOTE: Regulations.>> The Secretary shall prescribe in 
regulations requirements that each agent or attorney recognized under 
this section provide annually to the Secretary information about any 
court, bar, or Federal or State agency to which such agent or attorney 
is admitted to practice or otherwise authorized to appear, any relevant 
identification number or numbers, and a certification by such agent or 
attorney that such agent or attorney is in good standing in every 
jurisdiction where the agent or attorney is admitted to practice or 
otherwise authorized to appear.

    ``(4) The Secretary may not recognize an individual as an agent or 
attorney under paragraph (1) if such individual has been suspended or 
disbarred by any court, bar, or Federal or State agency to which the 
individual was previously admitted to practice and has not been 
subsequently reinstated.
    ``(5) The Secretary may prescribe in regulations reasonable 
restrictions on the amount of fees that an agent or attorney may charge 
a claimant for services rendered in the preparation, presentation, and 
prosecution of a claim before the Department. A fee that does not exceed 
20 percent of the past due amount of benefits awarded on a claim shall 
be presumed to be reasonable.
    ``(6)(A) The Secretary may charge and collect an assessment from an 
individual recognized as an agent or attorney under this section in any 
case in which the Secretary pays to the agent or attorney, from past-due 
benefits owed to a claimant represented by the agent or attorney, an 
amount as a fee in accordance with a fee arrangement between the 
claimant and the agent or attorney.
    ``(B) The amount of an assessment under subparagraph (A) shall be 
equal to five percent of the amount of the fee required to be paid to 
the agent or attorney, except that the amount of such an assessment may 
not exceed $100.
    ``(C) The Secretary may collect an assessment under subparagraph (A) 
by offsetting the amount of the fee otherwise required to be paid to the 
agent or attorney from the past-due benefits owed to the claimant 
represented by the agent or attorney.
    ``(D) An agent or attorney who is charged an assessment under 
subparagraph (A) may not, directly or indirectly, request, receive, or 
obtain reimbursement for such assessment from the claimant represented 
by the agent or attorney.
    ``(E) Amounts collected under this paragraph shall be deposited in 
the account available for administrative expenses for veterans' benefits 
programs. Amounts so deposited shall be merged with amounts in such 
account and shall be available for the same purpose, and subject to the 
same conditions and limitations, as amounts otherwise in such 
account.''.
            (2) Suspension of recognized representatives of veterans 
        service organizations.--Section 5902(b) <<NOTE: 38 USC 
        5902.>> is amended--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively;
                    (B) by inserting ``(1)'' after ``(b)''; and
                    (C) by adding at the end the following new 
                paragraph:

[[Page 120 STAT. 3407]]

    ``(2) An individual recognized under this section shall be subject 
to the provisions of section 5904(b) of this title on the same basis as 
an individual recognized under section 5904(a) of this title.''.
            (3) Suspension of individuals recognized for particular 
        claims.--Section 5903 <<NOTE: 38 USC 5903.>> is amended--
                    (A) by inserting ``(a) In General.--'' before ``The 
                Secretary''; and
                    (B) by adding at the end the following new 
                subsection:

    ``(b) Suspension.--An individual recognized under this section shall 
be subject to the provisions of section 5904(b) of this title on the 
same basis as an individual recognized under section 5904(a) of this 
title.''.
    (b) Additional Bases for Suspension of Individuals.--Subsection (b) 
of section 5904 is amended--
            (1) by inserting ``Suspension of Agents and Attorneys.--'' 
        after ``(b)'';
            (2) in paragraph (4), by striking ``or'' at the end;
            (3) in paragraph (5), by striking the period and inserting a 
        semicolon; and
            (4) by adding at the end the following new paragraphs:
            ``(6) has presented to the Secretary a frivolous claim, 
        issue, or argument, involving conduct inconsistent with ethical 
        standards for the practice of law;
            ``(7) has been suspended or disbarred by any court or bar to 
        which such agent or attorney was previously admitted to 
        practice, or has been disqualified from participating in or 
        appearing before any Federal agency, and has not been 
        subsequently reinstated;
            ``(8) has charged excessive or unreasonable fees, as 
        determined by the Secretary in accordance with subsection 
        (c)(3)(A); or
            ``(9) has failed to comply with any other condition 
        specified in regulations prescribed by the Secretary for 
        purposes of this subsection.''.

    (c) Modification of Date for Commencement of Services Subject to 
Fees.--
            (1) Modification.--Effective as provided in subsection (h), 
        paragraph (1) of subsection (c) of such section is amended--
                    (A) by striking ``the Board of Veterans' Appeals 
                first makes a final decision in'' and inserting ``a 
                notice of disagreement is filed with respect to'';
                    (B) by striking the second sentence; and
                    (C) in the third sentence, by inserting ``fees 
                charged, allowed, or paid for'' before ``services 
                provided''.
            (2) Report.--Not later than 42 months after the date of the 
        enactment of this Act, the Secretary of Veterans Affairs shall 
        submit to Congress a report that sets forth an assessment of the 
        effects of allowing agents and attorneys recognized under 
        section 5904 of title 38, United States Code, to charge a fee to 
        a claimant for services rendered in the preparation, 
        presentation, and prosecution of a claim before the Department 
        of Veterans Affairs after a notice of disagreement has been 
        filed. Such report shall include the recommendations of the 
        Secretary with respect to agent and attorney representation.

    (d) Modification of Requirements To File Attorney Fee Agreements.--
Effective as provided in subsection (h), paragraph (2) of subsection (c) 
of such section is amended--

[[Page 120 STAT. 3408]]

            (1) by striking ``after the Board first makes a final 
        decision in the case'' and inserting ``after a notice of 
        disagreement is filed with respect to the case'';
            (2) by striking ``with the Board at such time as may be 
        specified by the Board'' and inserting ``with the Secretary 
        pursuant to regulations prescribed by the Secretary''; and
            (3) by striking the second and third sentences.

    (e) Attorney Fees.--Subsection (c) of such section is further 
amended--
            (1) in paragraph (1), by striking ``paragraph (3)'' and 
        inserting ``paragraph (4)''; and
            (2) by redesignating paragraph (3) as paragraph (4);
            (3) by inserting after paragraph (2) the following new 
        paragraph (3):

    ``(3)(A) The Secretary may, upon the Secretary's own motion or at 
the request of the claimant, review a fee agreement filed pursuant to 
paragraph (2) and may order a reduction in the fee called for in the 
agreement if the Secretary finds that the fee is excessive or 
unreasonable.
    ``(B) A finding or order of the Secretary under subparagraph (A) may 
be reviewed by the Board of Veterans' Appeals under section 7104 of this 
title.
    ``(C) If the Secretary under subsection (b) suspends or excludes 
from further practice before the Department any agent or attorney who 
collects or receives a fee in excess of the amount authorized under this 
section, the suspension shall continue until the agent or attorney makes 
full restitution to each claimant from whom the agent or attorney 
collected or received an excessive fee. If the agent or attorney makes 
such restitution, the Secretary may reinstate such agent or attorney 
under such rules as the Secretary may prescribe.''.
    (f) Technical and Conforming Amendments.--Subsection (d) of such 
section is amended--
            (1) by inserting ``Payment of Fees Out of Past-Due 
        Benefits.--'' after ``(d)'';
            (2) by inserting ``agent or'' before ``attorney'' each place 
        it appears;
            (3) in paragraph (1), by striking ``of this subsection'' 
        after ``paragraph (2)'';
            (4) in paragraph (2)(B), by striking ``of this paragraph'' 
        after ``subparagraph (A)''; and
            (5) in paragraph (3)--
                    (A) by striking ``attorneys' fee'' and inserting 
                ``fee to an agent or attorney''; and
                    (B) by striking ``of this subsection'' after 
                ``paragraph (1)''.

    (g) Repeal of Penalty for Certain Acts.--Section 5905 <<NOTE: 38 USC 
5905.>> is amended by striking ``(1)'' and all that follows through 
``(2)''.

    (h) <<NOTE: 38 USC 5904 note.>> Effective Date.--The amendments made 
by subsections (c)(1) and (d) shall take effect on the date that is 180 
days after the date of the enactment of this Act and shall apply with 
respect to services of agents and attorneys that are provided with 
respect to cases in which notices of disagreement are filed on or after 
that date.

    (i) Limitation on Collection of Fee Assessment.-- 
<<NOTE: Regulations. 38 USC 5904 note.>> No assessments on fees may be 
collected under paragraph (6) of section 5904(a) of title 38, United 
States Code (as added by subsection

[[Page 120 STAT. 3409]]

(a)(1)(D) of this section), until the date on which the Secretary of 
Veterans Affairs prescribes the regulations required by the amendments 
made by this section.

                        TITLE II--HEALTH MATTERS

SEC. 201. ADDITIONAL MENTAL HEALTH PROVIDERS.

    (a) Appointments.--Section 7401(3) <<NOTE: 38 USC 7401.>> is amended 
by inserting after ``social workers,'' the following: ``marriage and 
family therapists, licensed professional mental health counselors,''.

    (b) Qualifications.--Section 7402(b) is amended--
            (1) by redesignating paragraph (10) as paragraph (12); and
            (2) by inserting after paragraph (9) the following new 
        paragraphs:

    ``(10) Marriage and Family Therapist.--To be eligible to be 
appointed to a marriage and family therapist position, a person must--
            ``(A) hold a master's degree in marriage and family therapy, 
        or a comparable degree in mental health, from a college or 
        university approved by the Secretary; and
            ``(B) be licensed or certified to independently practice 
        marriage and family therapy in a State, except that the 
        Secretary may waive the requirement of licensure or 
        certification for an individual marriage and family therapist 
        for a reasonable period of time recommended by the Under 
        Secretary for Health.

    ``(11) Licensed Professional Mental Health Counselor.--To be 
eligible to be appointed to a licensed professional mental health 
counselor position, a person must--
            ``(A) hold a master's degree in mental health counseling, or 
        a related field, from a college or university approved by the 
        Secretary; and
            ``(B) be licensed or certified to independently practice 
        mental health counseling.''.

    (c) Report on Marriage and Family Therapy Workload.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Under Secretary for Health of the 
        Department 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 the 
        provision of treatment for post-traumatic stress disorder by 
        marriage and family therapists employed by the Department of 
        Veterans Affairs.
            (2) Contents.--The report submitted under paragraph (1) 
        shall include the following:
                    (A) The actual and projected workloads in facilities 
                of the Veterans Readjustment Counseling Service and the 
                Veterans Health Administration for the provision of 
                marriage and family counseling for veterans diagnosed 
                with, or otherwise in need of treatment for, post-
                traumatic stress disorder.
                    (B) The resources available and needed to support 
                the projected workload described in subparagraph (A).
                    (C) An assessment by the Under Secretary for Health 
                of the effectiveness of treatment for post-traumatic 
                stress disorder that is provided by marriage and family 
                therapists.

[[Page 120 STAT. 3410]]

                    (D) Recommendations, if any, for improvements in the 
                provision of such treatment by such therapists.

SEC. 202. PAY COMPARABILITY FOR THE CHIEF NURSING OFFICER, OFFICE OF 
            NURSING SERVICES.

    Section 7404 <<NOTE: 38 USC 7404.>> is amended--
            (1) in subsection (d), by striking ``subchapter III and in'' 
        and inserting ``subsection (e), subchapter III, and''; and
            (2) by adding at the end the following new subsection:

    ``(e) The position of Chief Nursing Officer, Office of Nursing 
Services, shall be exempt from the provisions of section 7451 of this 
title and shall be paid at a rate determined by the Secretary, not to 
exceed the maximum rate established for the Senior Executive Service 
under section 5382 of title 5.''.

SEC. 203. <<NOTE: 38 USC 1712A note.>> IMPROVEMENT AND EXPANSION OF 
            MENTAL HEALTH SERVICES.

    (a) Required Capacity for Community-Based Outpatient Clinics.--
            (1) In general.--The Secretary of Veterans Affairs shall 
        ensure that each community-based outpatient clinic of the 
        Department of Veterans Affairs has the capacity to provide, or 
        monitor the provision of, mental health services to enrolled 
        veterans who, as determined by the Secretary, are in need of 
        such services.
            (2) Settings.--In carrying out paragraph (1), the Secretary 
        shall ensure that mental health services are provided through--
                    (A) a community-based outpatient clinic of the 
                Department by an employee of the Department;
                    (B) referral to another facility of the Department;
                    (C) contract with an appropriate mental health 
                professional in the community; or
                    (D) telemental health services.

    (b) Clinical Training and Protocols.--
            (1) Collaboration.--The National Center on Post-Traumatic 
        Stress Disorder of the Department of Veterans Affairs shall 
        collaborate with the Secretary of Defense--
                    (A) to enhance the clinical skills of military 
                clinicians on matters relating to post-traumatic stress 
                disorder through training, treatment protocols, web-
                based interventions, and the development of evidence-
                based interventions; and
                    (B) to promote pre-deployment resilience and post-
                deployment readjustment among members of the Armed 
                Forces serving in Operation Iraqi Freedom and Operation 
                Enduring Freedom.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated for the Department of Veterans Affairs for 
        fiscal year 2007 $2,000,000 to carry out this subsection.

    (c) Mental Health Outreach.--The Secretary of Veterans Affairs 
shall--
            (1) develop additional educational materials on post-
        traumatic stress disorder; and
            (2) undertake additional efforts to educate veterans about 
        post-traumatic stress disorder.

    (d) <<NOTE: Post-traumatic stress disorder.>> Review of PTSD 
Clinical Guidelines.--The Secretary of Veterans Affairs shall--

[[Page 120 STAT. 3411]]

            (1) review the clinical guidelines of the Department of 
        Veterans Affairs on post-traumatic stress disorder and all 
        appropriate protocols related to post-traumatic stress disorder;
            (2) revise such guidelines and protocols as the Secretary 
        considers appropriate to ensure that clinicians are able to 
        effectively distinguish between diagnoses with similar symptoms 
        that may manifest as post-traumatic stress disorder, including 
        traumatic brain injury; and
            (3) develop performance measures for the treatment of post-
        traumatic stress disorder among veterans.

SEC. 204. DISCLOSURE OF MEDICAL RECORDS.

    (a) Limited Exception to Confidentiality of Medical Records.--
Section 5701 <<NOTE: 38 USC 5701.>> is amended by adding at the end the 
following new subsection:

    ``(k)(1)(A) <<NOTE: Regulations.>> Under regulations that the 
Secretary shall prescribe, the Secretary may disclose the name and 
address of any individual described in subparagraph (C) to an entity 
described in subparagraph (B) in order to facilitate the determination 
by such entity whether the individual is, or after death will be, a 
suitable organ, tissue, or eye donor if--
            ``(i) the individual is near death (as determined by the 
        Secretary) or is deceased; and
            ``(ii) the disclosure is permitted under regulations 
        promulgated pursuant to section 264 of the Health Insurance 
        Portability and Accountability Act of 1996 (42 U.S.C. 1320d-2 
        note).

    ``(B) An entity described in this subparagraph is--
            ``(i) an organ procurement organization, including eye and 
        tissue banks; or
            ``(ii) an entity that the Secretary has determined--
                    ``(I) is substantially similar in function, 
                professionalism, and reliability to an organ procurement 
                organization; and
                    ``(II) should be treated for purposes of this 
                subsection in the same manner as an organ procurement 
                organization.

    ``(C) An individual described in this subparagraph is--
            ``(i) a veteran; or
            ``(ii) a dependent of veteran.

    ``(2) In this subsection, the term `organ procurement organization' 
has the meaning given the term `qualified organ procurement 
organization' in section 371(b) of the Public Health Service Act (42 
U.S.C. 273(b)).''.
    (b) Disclosures From Certain Medical Records.--Section 7332(b)(2) is 
amended by adding at the end the following new subparagraph:
            ``(E) To an entity described in paragraph (1)(B) of section 
        5701(k) of this title, but only to the extent authorized by such 
        section.''.

    (c) <<NOTE: 38 USC 5701 note.>> Deadline for Prescribing 
Regulations.--The Secretary of Veterans Affairs shall prescribe 
regulations under subsection (k) of section 5701 of title 38, United 
States Code, as added by subsection (a), not later than 180 days after 
the date of the enactment of this Act.

SEC. 205. <<NOTE: 38 USC 1712A note.>> EXPANSION OF TELEHEALTH SERVICES.

    (a) In General.--The Secretary of Veterans Affairs shall increase 
the number of facilities of the Readjustment Counseling Service that are 
capable of providing health services and counseling

[[Page 120 STAT. 3412]]

through telehealth linkages with facilities of the Veterans Health 
Administration.
    (b) <<NOTE: Deadline.>> Plan.--Not later than July 1, 2007, the 
Secretary shall submit to the Committee on Veterans' Affairs of the 
Senate and the Committee on Veterans' Affairs of the House of 
Representatives a plan to implement the requirement in subsection (a). 
The plan shall specify which facilities of the Readjustment Counseling 
Service will have the capabilities described in subsection (a) as of the 
end of each of fiscal years 2007, 2008, and 2009.

SEC. 206. STRATEGIC PLAN FOR LONG-TERM CARE.

    (a) Publication.-- <<NOTE: Deadline.>> Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Veterans Affairs 
shall publish a strategic plan for the provision of long-term care by 
the Department of Veterans Affairs.

    (b) Policies and Strategies.--The plan published under subsection 
(a) shall contain policies and strategies for--
            (1) the delivery of care in domiciliaries, residential 
        treatment facilities, and nursing homes and for seriously 
        mentally ill veterans;
            (2) maximizing the use of State veterans homes;
            (3) locating domiciliary units as close to patient 
        populations as feasible; and
            (4) identifying freestanding nursing homes as an acceptable 
        care model.

    (c) Data.--The plan published under subsection (a) shall include 
data on--
            (1) the provision of care of catastrophically disabled 
        veterans; and
            (2) the geographic distribution of catastrophically disabled 
        veterans.

    (d) Noninstitutional Long-Term Care Options.--The plan published 
under subsection (a) shall address the spectrum of noninstitutional 
long-term care options, including each of the following:
            (1) Respite care.
            (2) Home-based primary care.
            (3) Geriatric evaluation.
            (4) Adult day health care.
            (5) Skilled home health care.
            (6) Community residential care.

    (e) Additional Matters To Be Included.--The plan published under 
subsection (a) shall provide--
            (1) cost and quality comparison analyses of all the 
        different levels of long-term care for veterans;
            (2) detailed information about geographic distribution of 
        services and gaps in care; and
            (3) specific plans for working with Medicare, Medicaid, and 
        private insurance companies to expand the availability of such 
        care.

SEC. 207. <<NOTE: 38 USC 3104 note.>> BLIND REHABILITATION OUTPATIENT 
            SPECIALISTS.

    (a) Findings.--Congress makes the following findings:
            (1) There are approximately 135,000 blind veterans 
        throughout the United States, including approximately 35,000 who 
        are enrolled with the Department of Veterans Affairs. An aging 
        veteran population and injuries incurred in Operation Iraqi 
        Freedom and Operation Enduring Freedom are increasing the number 
        of blind veterans.

[[Page 120 STAT. 3413]]

            (2) Since 1996, when the Department of Veterans Affairs 
        hired its first 14 blind rehabilitation outpatient specialists 
        (referred to in this section as ``Specialists''), Specialists 
        have been a critical part of the continuum of care for blind and 
        visually impaired veterans.
            (3) The Department of Veterans Affairs operates 10 
        residential blind rehabilitation centers that are considered 
        among the best in the world. These centers have had long waiting 
        lists, with as many as 1,500 blind veterans waiting for openings 
        in 2004.
            (4) Specialists provide--
                    (A) critically needed services to veterans who are 
                unable to attend residential centers or are waiting to 
                enter a residential center program;
                    (B) a range of services for blind veterans, 
                including training with living skills, mobility, and 
                adaptation of manual skills; and
                    (C) pre-admission screening and follow-up care for 
                blind rehabilitation centers.
            (5) There are not enough Specialist positions to meet the 
        increased numbers and needs of blind veterans.

    (b) <<NOTE: Deadline.>> Establishment of Additional Specialist 
Positions.--Not later than 30 months after the date of the enactment of 
this Act, the Secretary of Veterans Affairs shall establish an 
additional Specialist position at not fewer than 35 additional 
facilities of the Department of Veterans Affairs.

    (c) Selection of Facilities.--In identifying the most appropriate 
facilities to receive a Specialist position under this section, the 
Secretary shall--
            (1) give priority to facilities with large numbers of 
        enrolled legally blind veterans;
            (2) ensure that each facility does not have such a position; 
        and
            (3) ensure that each facility is in need of the services of 
        a Specialist.

    (d) Coordination.--The Secretary shall coordinate the provision of 
blind rehabilitation services for veterans with services for the care of 
the visually impaired offered by State and local agencies, especially to 
the extent to which such State and local agencies can provide necessary 
services to blind veterans in settings located closer to the residences 
of such veterans at similar quality and cost to the veteran.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated for the Department of Veterans Affairs to carry out this 
section $3,500,000 for each of fiscal years 2007 through 2012.

SEC. 208. EXTENSION OF CERTAIN COMPLIANCE REPORTS.

    (a) Management of Health Care.--Section 1706(b)(5)(A) <<NOTE: 38 USC 
1706.>> is amended by striking ``2004'' and inserting ``2008''.

    (b) Advisory Committee on Women Veterans.--Section 542(c)(1) is 
amended by striking ``2004'' and inserting ``2008''.

SEC. 209. PARKINSON'S DISEASE RESEARCH, EDUCATION, AND CLINICAL CENTERS 
            AND MULTIPLE SCLEROSIS CENTERS OF EXCELLENCE.

    (a) Requirement for Establishment of Centers.--

[[Page 120 STAT. 3414]]

            (1) In general.--Subchapter II of chapter 73 is amended by 
        adding at the end the following new sections:

``Sec. 7329. Parkinson's Disease research, education, and clinical 
                        centers

    ``(a) Establishment of Centers.--(1) The Secretary, upon the 
recommendation of the Under Secretary for Health, shall designate not 
less than six Department health-care facilities as the locations for 
centers of Parkinson's Disease research, education, and clinical 
activities.
    ``(2) Subject to the availability of appropriations for such 
purpose, the Secretary shall establish and operate centers of 
Parkinson's Disease research, education, and clinical activities centers 
at the locations designated pursuant to paragraph (1).
    ``(b) Criteria for Designation of Facilities.--(1) In designating 
Department health-care facilities for centers under subsection (a), the 
Secretary, upon the recommendation of the Under Secretary for Health, 
shall assure appropriate geographic distribution of such facilities.
    ``(2) Except as provided in paragraph (3), the Secretary shall 
designate as the location for a center of Parkinson's Disease research, 
education, and clinical activities pursuant to subsection (a)(1) each 
Department health-care facility that as of January 1, 2005, was 
operating a Parkinson's Disease research, education, and clinical 
center.
    ``(3) The Secretary may not under subsection (a) designate a 
facility described in paragraph (2) if (on the recommendation of the 
Under Secretary for Health) the Secretary determines that such 
facility--
            ``(A) does not meet the requirements of subsection (c); or
            ``(B) has not demonstrated--
                    ``(i) effectiveness in carrying out the established 
                purposes of such center; or
                    ``(ii) the potential to carry out such purposes 
                effectively in the reasonably foreseeable future.

    ``(c) Requirements for Designation.--(1) The Secretary may not 
designate a Department health-care facility as a location for a center 
under subsection (a) unless the peer review panel established under 
subsection (d) has determined under that subsection that the proposal 
submitted by such facility as a location for a new center under 
subsection (a) is among those proposals that meet the highest 
competitive standards of scientific and clinical merit.
    ``(2) The Secretary may not designate a Department health-care 
facility as a location for a center under subsection (a) unless the 
Secretary (upon the recommendation of the Under Secretary for Health) 
determines that the facility has (or may reasonably be anticipated to 
develop) each of the following:
            ``(A) An arrangement with an accredited medical school that 
        provides education and training in neurology and with which the 
        Department health-care facility is affiliated under which 
        residents receive education and training in innovative diagnosis 
        and treatment of chronic neurodegenerative diseases and movement 
        disorders, including Parkinson's Disease.
            ``(B) The ability to attract the participation of scientists 
        who are capable of ingenuity and creativity in health-care 
        research efforts.

[[Page 120 STAT. 3415]]

            ``(C) An advisory committee composed of veterans and 
        appropriate health-care and research representatives of the 
        Department health-care facility and of the affiliated school or 
        schools to advise the directors of such facility and such center 
        on policy matters pertaining to the activities of the center 
        during the period of the operation of such center.
            ``(D) The capability to conduct effectively evaluations of 
        the activities of such center.
            ``(E) The capability to coordinate (as part of an integrated 
        national system) education, clinical, and research activities 
        within all facilities with such centers.
            ``(F) The capability to jointly develop a consortium of 
        providers with interest in treating neurodegenerative diseases, 
        including Parkinson's Disease and other movement disorders, at 
        facilities without centers established under subsection (a) in 
        order to ensure better access to state-of-the-art diagnosis, 
        care, and education for neurodegenerative disorders throughout 
        the health-care system of the Department.
            ``(G) The capability to develop a national repository in the 
        health-care system of the Department for the collection of data 
        on health services delivered to veterans seeking care for 
        neurodegenerative diseases, including Parkinson's Disease, and 
        other movement disorders.

    ``(d) <<NOTE: Establishment.>> Peer Review Panel.--(1) The Under 
Secretary for Health shall establish a panel to assess the scientific 
and clinical merit of proposals that are submitted to the Secretary for 
the establishment of centers under this section.

    ``(2)(A) The membership of the panel shall consist of experts in 
neurodegenerative diseases, including Parkinson's Disease and other 
movement disorders.
    ``(B) Members of the panel shall serve for a period of no longer 
than two years, except as specified in subparagraph (C).
    ``(C) Of the members first appointed to the panel, one half shall be 
appointed for a period of three years and one half shall be appointed 
for a period of two years, as designated by the Under Secretary at the 
time of appointment.
    ``(3) The panel shall review each proposal submitted to the panel by 
the Under Secretary and shall submit its views on the relative 
scientific and clinical merit of each such proposal to the Under 
Secretary.
    ``(4) The panel shall not be subject to the Federal Advisory 
Committee Act.
    ``(e) Priority of Funding.--Before providing funds for the operation 
of a center designated under subsection (a) at a Department health-care 
facility other than at a facility designated pursuant to subsection 
(b)(2), the Secretary shall ensure that each Parkinson's Disease center 
at a facility designated pursuant to subsection (b)(2) is receiving 
adequate funding to enable that center to function effectively in the 
areas of Parkinson's Disease research, education, and clinical 
activities.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for the support of the 
research and education activities of the centers established pursuant to 
subsection (a). The Under Secretary for Health shall allocate to such 
centers from other funds appropriated generally

[[Page 120 STAT. 3416]]

for the Department medical services account and medical and prosthetics 
research account, as appropriate, such amounts as the Under Secretary 
for Health determines appropriate.
    ``(g) Award Competitions.--Activities of clinical and scientific 
investigation at each center established under subsection (a) shall be 
eligible to compete for the award of funding from funds appropriated for 
the Department medical and prosthetics research account. Such activities 
shall receive priority in the award of funding from such account insofar 
as funds are awarded to projects for research in Parkinson's Disease and 
other movement disorders.

``Sec. 7330. Multiple sclerosis centers of excellence

    ``(a) Establishment of Centers.--(1) The Secretary, upon the 
recommendation of the Under Secretary for Health, shall designate not 
less than two Department health-care facilities as the locations for 
multiple sclerosis centers of excellence.
    ``(2) Subject to the availability of appropriations for such 
purpose, the Secretary shall establish and operate multiple sclerosis 
centers of excellence at the locations designated pursuant to paragraph 
(1).
    ``(b) Criteria for Designation of Facilities.--(1) In designating 
Department health-care facilities for centers under subsection (a), the 
Secretary, upon the recommendation of the Under Secretary for Health, 
shall assure appropriate geographic distribution of such facilities.
    ``(2) Except as provided in paragraph (3), the Secretary shall 
designate as the location for a center pursuant to subsection (a)(1) 
each Department health-care facility that as of January 1, 2005, was 
operating a multiple sclerosis center of excellence.
    ``(3) The Secretary may not under subsection (a) designate a 
facility described in paragraph (2) if (on the recommendation of the 
Under Secretary for Health) the Secretary determines that such 
facility--
            ``(A) does not meet the requirements of subsection (c); or
            ``(B) has not demonstrated--
                    ``(i) effectiveness in carrying out the established 
                purposes of such center; or
                    ``(ii) the potential to carry out such purposes 
                effectively in the reasonably foreseeable future.

    ``(c) Requirements for Designation.--(1) The Secretary may not 
designate a Department health-care facility as a location for a center 
under subsection (a) unless the peer review panel established under 
subsection (d) has determined under that subsection that the proposal 
submitted by such facility as a location for a new center under 
subsection (a) is among those proposals that meet the highest 
competitive standards of scientific and clinical merit.
    ``(2) The Secretary may not designate a Department health-care 
facility as a location for a center under subsection (a) unless the 
Secretary (upon the recommendation of the Under Secretary for Health) 
determines that the facility has (or may reasonably be anticipated to 
develop) each of the following:
            ``(A) An arrangement with an accredited medical school that 
        provides education and training in neurology and with which the 
        Department health-care facility is affiliated under which 
        residents receive education and training in innovative

[[Page 120 STAT. 3417]]

        diagnosis and treatment of autoimmune diseases affecting the 
        central nervous system, including multiple sclerosis.
            ``(B) The ability to attract the participation of scientists 
        who are capable of ingenuity and creativity in health-care 
        research efforts.
            ``(C) An advisory committee composed of veterans and 
        appropriate health-care and research representatives of the 
        Department health-care facility and of the affiliated school or 
        schools to advise the directors of such facility and such center 
        on policy matters pertaining to the activities of the center 
        during the period of the operation of such center.
            ``(D) The capability to conduct effectively evaluations of 
        the activities of such center.
            ``(E) The capability to coordinate (as part of an integrated 
        national system) education, clinical, and research activities 
        within all facilities with such centers.
            ``(F) The capability to jointly develop a consortium of 
        providers with interest in treating multiple sclerosis at 
        facilities without such centers in order to ensure better access 
        to state-of-the-art diagnosis, care, and education for 
        autoimmune disease affecting the central nervous system 
        throughout the health-care system of the Department.
            ``(G) The capability to develop a national repository in the 
        health-care system of the Department for the collection of data 
        on health services delivered to veterans seeking care for 
        autoimmune disease affecting the central nervous system.

    ``(d) <<NOTE: Establishment.>> Peer Review Panel.--(1) The Under 
Secretary for Health shall establish a panel to assess the scientific 
and clinical merit of proposals that are submitted to the Secretary for 
the establishment of centers under this section.

    ``(2)(A) The membership of the panel shall consist of experts in 
autoimmune disease affecting the central nervous system.
    ``(B) Members of the panel shall serve for a period of no longer 
than two years, except as specified in subparagraph (C).
    ``(C) Of the members first appointed to the panel, one half shall be 
appointed for a period of three years and one half shall be appointed 
for a period of two years, as designated by the Under Secretary at the 
time of appointment.
    ``(3) The panel shall review each proposal submitted to the panel by 
the Under Secretary and shall submit its views on the relative 
scientific and clinical merit of each such proposal to the Under 
Secretary.
    ``(4) The panel shall not be subject to the Federal Advisory 
Committee Act.
    ``(e) Priority of Funding.--Before providing funds for the operation 
of a center designated under subsection (a) at a Department health-care 
facility other than at a facility designated pursuant to subsection 
(b)(2), the Secretary shall ensure that each multiple sclerosis center 
at a facility designated pursuant to subsection (b)(2) is receiving 
adequate funding to enable that center to function effectively in the 
areas of multiple sclerosis research, education, and clinical 
activities.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for the support of the 
research and education activities of the centers established pursuant to 
subsection (a). The Under Secretary for Health shall allocate to such 
centers from other funds appropriated generally

[[Page 120 STAT. 3418]]

for the Department medical services account and medical and prosthetics 
research account, as appropriate, such amounts as the Under Secretary 
for Health determines appropriate.
    ``(g) Award Competitions.--Activities of clinical and scientific 
investigation at each center established under subsection (a) shall be 
eligible to compete for the award of funding from funds appropriated for 
the Department medical and prosthetics research account. Such activities 
shall receive priority in the award of funding from such account insofar 
as funds are awarded to projects for research in multiple sclerosis and 
other neurodegenerative disorders.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the item 
        relating to section 7328 the following new items:

``7329. Parkinson's Disease research, education, and clinical centers.
``7330. Multiple sclerosis centers of excellence.''.

    (b) <<NOTE: 38 USC 7329 note.>> Effective Date.--Sections 7329 and 
7330 of title 38, United States Code, as added by subsection (a), shall 
take effect at the end of the 30-day period beginning on the date of the 
enactment of this Act.

SEC. 210. REPEAL OF TERM OF OFFICE FOR THE UNDER SECRETARY FOR HEALTH 
            AND THE UNDER SECRETARY FOR BENEFITS.

    (a) Under Secretary for Health.--
            (1) In general.--Section 305 <<NOTE: 38 USC 305.>> is 
        amended by striking subsection (c).
            (2) Conforming amendment.--Subsection (d) of such section is 
        redesignated as subsection (c).

    (b) Under Secretary for Benefits.--
            (1) In general.--Section 306 is amended by striking 
        subsection (c).
            (2) Conforming amendment.--Subsection (d) of such section is 
        redesignated as subsection (c).

SEC. 211. MODIFICATIONS TO STATE HOME AUTHORITIES.

    (a) Nursing Home Care and Prescription Medications in State Homes 
for Veterans With Service-Connected Disabilities.--
            (1) Nursing home care.--Subchapter V of chapter 17 is 
        amended by adding at the end the following new section:

``Sec. 1745. Nursing home care and medications for veterans with 
                        service-connected disabilities

    ``(a)(1) The Secretary shall pay each State home for nursing home 
care at the rate determined under paragraph (2), in any case in which 
such care is provided to any veteran as follows:
            ``(A) Any veteran in need of such care for a service-
        connected disability.
            ``(B) Any veteran who--
                    ``(i) has a service-connected disability rated at 70 
                percent or more; and
                    ``(ii) is in need of such care.

    ``(2) The rate determined under this paragraph with respect to a 
State home is the lesser of--

[[Page 120 STAT. 3419]]

            ``(A) the applicable or prevailing rate payable in the 
        geographic area in which the State home is located, as 
        determined by the Secretary, for nursing home care furnished in 
        a non-Department nursing home (as that term is defined in 
        section 1720(e)(2) of this title); or
            ``(B) a rate not to exceed the daily cost of care, as 
        determined by the Secretary, following a report to the Secretary 
        by the director of the State home.

    ``(3) Payment by the Secretary under paragraph (1) to a State home 
for nursing home care provided to a veteran described in that paragraph 
constitutes payment in full to the State home for such care furnished to 
that veteran.''.
            (2) Provision of prescription medicines.--Such section, as 
        so added, is further amended by adding at the end the following 
        new subsection:

    ``(b) The Secretary shall furnish such drugs and medicines as may be 
ordered on prescription of a duly licensed physician as specific therapy 
in the treatment of illness or injury to any veteran as follows:
            ``(1) Any veteran who--
                    ``(A) is not being provided nursing home care for 
                which payment is payable under subsection (a); and
                    ``(B) is in need of such drugs and medicines for a 
                service-connected disability.
            ``(2) Any veteran who--
                    ``(A) has a service-connected disability rated at 50 
                percent or more;
                    ``(B) is not being provided nursing home care for 
                which payment is payable under subsection (a); and
                    ``(C) is in need of such drugs and medicines.''.
            (3) Conforming amendments.--
                    (A) Criteria for payment.--Section 
                1741(a)(1) <<NOTE: 38 USC 1741.>> is amended by striking 
                ``The'' and inserting ``Except as provided in section 
                1745 of this title, the''.
                    (B) Eligibility for nursing home care.--Section 
                1710(a)(4) is amended--
                          (i) by striking ``and'' before ``the 
                      requirement in section 1710B of this title''; and
                          (ii) by inserting ``, and the requirement in 
                      section 1745 of this title to provide nursing home 
                      care and prescription medicines to veterans with 
                      service-connected disabilities in State homes'' 
                      after ``a program of extended care services''.
            (4) Clerical amendment.--The table of sections at the 
        beginning of chapter 17 is amended by inserting after the item 
        relating to section 1744 the following new item:

``1745. Nursing home care and medications for veterans with service-
           connected disabilities.''.

            (5) <<NOTE: 38 USC 1710 note.>> Effective date.--The 
        amendments made by this subsection shall take effect 90 days 
        after the date of the enactment of this Act.

    (b) Identification of Veterans in State Homes.--Such chapter is 
further amended--
            (1) in section 1745, as added by subsection (a)(1) of this 
        section, by adding at the end the following new subsection:

[[Page 120 STAT. 3420]]

    ``(c) Any State home that requests payment or reimbursement for 
services provided to a veteran under this section shall provide to the 
Secretary such information as the Secretary considers necessary to 
identify each individual veteran eligible for payment under such 
section.''; and
            (2) in section 1741, by adding at the end the following new 
        subsection:

    ``(f) Any State home that requests payment or reimbursement for 
services provided to a veteran under this section shall provide to the 
Secretary such information as the Secretary considers necessary to 
identify each individual veteran eligible for payment under such 
section.''.
    (c) Authority To Treat Certain Health Facilities as State Homes.--
            (1) Authority.--Subchapter III of chapter 81 is amended by 
        adding at the end the following new section:

``Sec. 8138. Treatment of certain health facilities as State homes

    ``(a) The Secretary may treat a health facility (or certain beds in 
a health facility) as a State home for purposes of subchapter V of 
chapter 17 of this title if the following requirements are met:
            ``(1) The facility (or certain beds in such facility) meets 
        the standards for the provision of nursing home care that are 
        applicable to State homes, as prescribed by the Secretary under 
        section 8134(b) of this title, and such other standards relating 
        to the facility (or certain beds in such facility) as the 
        Secretary may require.
            ``(2) The facility (or certain beds in such facility) is 
        licensed or certified by the appropriate State and local 
        agencies charged with the responsibility of licensing or 
        otherwise regulating or inspecting State home facilities.
            ``(3) The State demonstrates in an application to the 
        Secretary that, but for the treatment of a facility (or certain 
        beds in such facility), as a State home under this subsection, a 
        substantial number of veterans residing in the geographic area 
        in which the facility is located who require nursing home care 
        will not have access to such care.
            ``(4) The Secretary determines that the treatment of the 
        facility (or certain beds in such facility) as a State home best 
        meets the needs of veterans for nursing home care in the 
        geographic area in which the facility is located.
            ``(5) The Secretary approves the application submitted by 
        the State with respect to the facility (or certain beds in such 
        facility).

    ``(b) The Secretary may not treat a health facility (or certain beds 
in a health facility) as a State home under subsection (a) if the 
Secretary determines that such treatment would increase the number of 
beds allocated to the State in excess of the limit on the number of beds 
provided for by regulations prescribed under section 8134(a) of this 
title.
    ``(c) The number of beds occupied by veterans in a health facility 
for which payment may be made under subchapter V of chapter 17 of this 
title by reason of subsection (a) shall not exceed--
            ``(1) 100 beds in the aggregate for all States; and
            ``(2) in the case of any State, the difference between--

[[Page 120 STAT. 3421]]

                    ``(A) the number of veterans authorized to be in 
                beds in State homes in such State under regulations 
                prescribed under section 8134(a) of this title; and
                    ``(B) the number of veterans actually in beds in 
                State homes (other than facilities or certain beds 
                treated as State homes under subsection (a)) in such 
                State under regulations prescribed under such section.

    ``(d) The number of beds in a health facility in a State that has 
been treated as a State home under subsection (a) shall be taken into 
account in determining the unmet need for beds for State homes for the 
State under section 8134(d)(1) of this title.
    ``(e) The Secretary may not treat any new health facilities (or any 
new certain beds in a health facility) as a State home under subsection 
(a) after September 30, 2009.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the item 
        relating to section 8137 the following new item:

``8138. Treatment of certain health facilities as State homes.''.

SEC. 212. OFFICE OF RURAL HEALTH.

    (a) In General.--
            (1) Establishment and functions.--Chapter 73 is amended by 
        inserting after section 7307 the following new section:

``Sec. 7308. Office of Rural Health

    ``(a) Establishment.--There is established in the Department within 
the Office of the Under Secretary for Health an office to be known as 
the `Office of Rural Health' (in this section referred to as the 
`Office').
    ``(b) Head.--The Director of the Office of Rural Health shall be the 
head of the Office. The Director of the Office of Rural Health shall be 
appointed by the Under Secretary of Health from among individuals 
qualified to perform the duties of the position.
    ``(c) Functions.--The functions of the Office are as follows:
            ``(1) In cooperation with the medical, rehabilitation, 
        health services, and cooperative studies research programs in 
        the Office of Policy and the Office of Research and Development 
        of the Veterans Health Administration, to assist the Under 
        Secretary for Health in conducting, coordinating, promoting, and 
        disseminating research into issues affecting veterans living in 
        rural areas.
            ``(2) To work with all personnel and offices of the 
        Department of Veterans Affairs to develop, refine, and 
        promulgate policies, best practices, lessons learned, and 
        innovative and successful programs to improve care and services 
        for veterans who reside in rural areas of the United States.
            ``(3) To designate in each Veterans Integrated Service 
        Network (VISN) an individual who shall consult on and coordinate 
        the discharge in such Network of programs and activities of the 
        Office for veterans who reside in rural areas of the United 
        States.
            ``(4) To perform such other functions and duties as the 
        Secretary or the Under Secretary for Health considers 
        appropriate.''.

[[Page 120 STAT. 3422]]

            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the item 
        relating to section 7307 the following new item:

``7308. Office of Rural Health.''.

    (b) Assessment of Fee-Basis Health-Care Program.--The Director of 
the Office of Rural Health shall conduct an assessment of the effects of 
the implementation of the fee-basis health-care program of the Veterans 
Health Administration on the delivery of health-care services to 
veterans who reside in rural areas of the United States. The assessment 
shall be conducted in consultation with the individuals designated under 
subsection (c)(3) of section 7308 of title 38, United States Code, as 
added by subsection (a). In conducting the assessment, the Director 
shall--
            (1) identify various mechanisms for expanding the program in 
        order to enhance and improve health-care services for such 
        veterans and determine the feasibility and advisability of 
        implementing such mechanisms; and
            (2) for each mechanism determined under paragraph (1) to be 
        feasible and advisable to implement, make recommendations to the 
        Under Secretary for Health on the implementation of such 
        mechanism.

    (c) Plan To Improve Access and Quality of Care.-- 
<<NOTE: Deadline.>> Not later than September 30, 2007, the Director of 
the Office of Rural Health shall develop a plan to improve the access 
and quality of care for enrolled veterans in rural areas. The plan shall 
include--
            (1) measures for meeting the long term care needs of rural 
        veterans; and
            (2) measures for meeting the mental health needs of veterans 
        residing in rural areas.

    (d) Report on Community-Based Outpatient Clinics and Access Points 
Identified in CARES May 2004 Decision Document.-- Not later than March 
30, 2007, 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 that--
            (1) identifies each of the community-based outpatient 
        clinics and access points identified in the May 2004 Decision 
        Document of Capital Asset Realignment for Enhanced Services 
        (CARES) that have been opened; and
            (2) identifies each of the clinics and access points 
        identified in such report that would be opened in fiscal year 
        2007 or 2008 if funding were available for such purpose.

SEC. 213. <<NOTE: 38 USC 6303 note.>> OUTREACH PROGRAM TO VETERANS IN 
            RURAL AREAS.

    (a) Program.--The Secretary of Veterans Affairs shall conduct an 
extensive outreach program to identify and provide information to 
veterans who served in the theater of operations for Operation Iraqi 
Freedom or Operation Enduring Freedom and who reside in rural 
communities in order to enroll those veterans in the health-care system 
of the Department of Veterans Affairs during the period when they are 
eligible for such enrollment.
    (b) Features of Program.--In carrying out the program under 
subsection (a), the Secretary shall seek to work at the local level with 
employers, State agencies, community health centers located in rural 
areas, rural health clinics, and critical access hospitals located in 
rural areas, and units of the National Guard and other

[[Page 120 STAT. 3423]]

reserve components based in rural areas, in order to increase the 
awareness of veterans and their families of the availability of health 
care provided by the Secretary and the means by which those veterans can 
achieve access to the health-care services provided by the Department of 
Veterans Affairs.

SEC. 214. <<NOTE: 38 USC 1710B note.>> PILOT PROGRAM ON IMPROVEMENT OF 
            CAREGIVER ASSISTANCE SERVICES.

    (a) In General.-- <<NOTE: Deadline.>> Commencing not later than 120 
days after the date of the enactment of this Act, the Secretary of 
Veterans Affairs shall carry out a pilot program to assess the 
feasibility and advisability of various mechanisms to expand and improve 
caregiver assistance services.

    (b) Duration of Pilot Program.--The pilot program required by 
subsection (a) shall be carried out during the two-year period beginning 
on the date of the commencement of the pilot program.
    (c) Caregiver Assistance Services.--For purposes of this section, 
the term ``caregiver assistance services'' means services of the 
Department of Veterans Affairs that assist caregivers of veterans. Such 
services including the following:
            (1) Adult-day health care services.
            (2) Coordination of services needed by veterans, including 
        services for readjustment and rehabilitation.
            (3) Transportation services.
            (4) Caregiver support services, including education, 
        training, and certification of family members in caregiver 
        activities.
            (5) Home care services.
            (6) Respite care.
            (7) Hospice services.
            (8) Any modalities of non-institutional long-term care.

    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Veterans Affairs $5,000,000 for each 
of fiscal years 2007 and 2008 to carry out the pilot program authorized 
by this section.
    (e) Allocation of Funds to Facilities.--The Secretary shall allocate 
funds appropriated pursuant to the authorization of appropriations in 
subsection (d) to individual medical facilities of the Department in 
such amounts as the Secretary determines appropriate, based upon 
proposals submitted by such facilities for the use of such funds for 
improvements to the support of the provision of caregiver assistance 
services. Special consideration should be given to rural facilities, 
including those without a long-term care facility of the Department.
    (f) Report.--Not later than one year after the date of the enactment 
of this Act, the Secretary 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 the implementation of this section. 
The report shall include--
            (1) a description and assessment of the activities carried 
        out under the pilot program;
            (2) information on the allocation of funds to facilities of 
        the Department under subsection (e); and
            (3) a description of the improvements made with funds so 
        allocated to the support of the provision of caregiver 
        assistance services.

[[Page 120 STAT. 3424]]

SEC. 215. <<NOTE: 38 USC 1712A note.>> EXPANSION OF OUTREACH ACTIVITIES 
            OF VET CENTERS.

    (a) Additional Outreach Workers.--The Secretary of Veterans Affairs 
shall employ not fewer than 100 veterans for the purpose of providing 
outreach to veterans on the availability of readjustment counseling and 
related mental health services for veterans under section 1712A of title 
38, United States Code.
    (b) Construction With Current Outreach Program.--The veterans 
employed under subsection (a) are in addition to any veterans employed 
by the Secretary for the purpose described in that subsection under the 
February 2004 program of the Department of Veterans Affairs to provide 
outreach described in that subsection.
    (c) Assignment to Vet Centers.--The Secretary may assign any veteran 
employed under subsection (a) to any center for the provision of 
readjustment counseling and related mental health services under section 
1712A of title 38, United States Code, that the Secretary considers 
appropriate in order to meet the purpose described in that subsection.
    (d) Inapplicability and Termination of Limitation on Duration of 
Employment.--Any limitation on the duration of employment of veterans 
under the program described in subsection (b) is hereby terminated and 
shall not apply to veterans employed under such program or under this 
section.
    (e) Employment Status.--Veterans employed under subsection (a) shall 
be employed in career conditional status, which is the employment status 
in which veterans are employed under the program described in subsection 
(b).

SEC. 216. CLARIFICATION AND ENHANCEMENT OF BEREAVEMENT COUNSELING.

    (a) Clarification of Members of Immediate Family Eligible for 
Counseling.--Subsection (b) of section 1783 <<NOTE: 38 USC 1783.>> is 
amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following new paragraph:

    ``(2) For purposes of this subsection, the members of the immediate 
family of a member of the Armed Forces described in paragraph (1) 
include the parents of such member.''.
    (b) Provision of Counseling Through Vet Centers.--Such section is 
further amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection (c):

    ``(c) Provision of Counseling Through Vet Centers.--Bereavement 
counseling may be provided under this section through the facilities and 
personnel of centers for the provision of readjustment counseling and 
related mental health services under section 1712A of this title.''.

SEC. 217. FUNDING FOR VET CENTER PROGRAM.

    There are authorized to be appropriated to the Department of 
Veterans Affairs for fiscal year 2007 $180,000,000 for the provision of 
readjustment counseling and related mental health services through 
centers under section 1712A of title 38, United States Code.

[[Page 120 STAT. 3425]]

                      TITLE III--EDUCATION MATTERS

SEC. 301. EXPANSION OF ELIGIBILITY FOR SURVIVORS' AND DEPENDENTS' 
            EDUCATIONAL ASSISTANCE PROGRAM.

    (a) Expansion of Eligibility.--Section 3501(a)(1) <<NOTE: 38 USC 
3501.>> is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``means--'' and inserting ``means any of the following:'';
            (2) in each of subparagraphs (A) through (D), by 
        capitalizing the first letter of the first word;
            (3) in subparagraph (A)--
                    (A) by inserting after ``a person who'' the 
                following: ``, as a result of qualifying service'';
                    (B) by striking the comma at the end of clause (i) 
                and inserting ``; or'';
                    (C) by striking ``, or'' at the end of clause (ii) 
                and inserting a period; and
                    (D) by striking clause (iii);
            (4) in subparagraph (B) by striking the comma at the end and 
        inserting the following: ``sustained during a period of 
        qualifying service.'';
            (5) in subparagraph (C)--
                    (A) by inserting ``or child'' after ``the spouse''; 
                and
                    (B) by striking ``, or'' at the end and inserting a 
                period;
            (6) in subparagraph (D)--
                    (A) in clause (i), by inserting before the comma the 
                following: ``sustained during a period of qualifying 
                service''; and
                    (B) by striking the comma at the end and inserting a 
                period;
            (7) by inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) The spouse or child of a person who--
                          ``(i) at the time of the Secretary's 
                      determination under clause (ii), is a member of 
                      the Armed Forces who is hospitalized or receiving 
                      outpatient medical care, services, or treatment;
                          ``(ii) the Secretary determines has a total 
                      disability permanent in nature incurred or 
                      aggravated in the line of duty in the active 
                      military, naval, or air service; and
                          ``(iii) is likely to be discharged or released 
                      from such service for such disability.''; and
            (8) by striking ``arising out of'' and all that follows 
        through the end.

    (b) Conforming Amendments to Chapter 35.--Chapter 35 is amended as 
follows:
            (1) Section 3501(a) is amended by adding at the end the 
        following new paragraph:
            ``(12) The term `qualifying service' means service in the 
        active military, naval, or air service after the beginning of 
        the Spanish-American War that did not terminate under 
        dishonorable conditions.''.
            (2) Section 3511 is amended--
                    (A) in subsection (a)(1)--

[[Page 120 STAT. 3426]]

                          (i) by striking ``Each eligible person'' and 
                      inserting the following: ``Each eligible person, 
                      whether made eligible by one or more of the 
                      provisions of section 3501(a)(1) of this title,'';
                          (ii) by striking ``a period'' and inserting 
                      ``an aggregate period''; and
                          (iii) by striking the second sentence;
                    (B) in subsection (b)--
                          (i) in paragraph (2)--
                                    (I) by striking ``the provisions of 
                                section 3501(a)(1)(A)(iii) or'' and 
                                inserting ``section''; and
                                    (II) by striking ``or'' at the end;
                          (ii) in paragraph (3)--
                                    (I) by striking ``section 
                                3501(a)(1)(D)'' and inserting 
                                ``subparagraph (D) or (E) of section 
                                3501(a)(1)''; and
                                    (II) by inserting ``or'' after the 
                                comma at the end; and
                          (iii) by inserting after paragraph (3) the 
                      following new paragraph:
            ``(4) the parent or spouse from whom such eligibility is 
        derived based upon subparagraph (E) of section 3501(a)(1) of 
        this title no longer meets a requirement under clause (i), (ii), 
        or (iii) of that subparagraph,''; and
                    (C) by striking subsection (c).
            (3) Section 3512 <<NOTE: 38 USC 3512.>> is amended--
                    (A) in subsection (a)--
                          (i) by striking ``an eligible person (within 
                      the meaning of section 3501(a)(1)(A) of this 
                      title)'' and inserting ``an eligible person whose 
                      eligibility is based on the death or disability of 
                      a parent or on a parent being listed in one of the 
                      categories referred to in section 3501(a)(1)(C) of 
                      this title''; and
                          (ii) in paragraph (6), by striking ``the 
                      provisions of section 3501(a)(1)(A)(iii)'' and 
                      inserting ``a parent being listed in one of the 
                      categories referred to in section 3501(a)(1)(C)'';
                    (B) in subsection (b)--
                          (i) in paragraph (1)(A)--
                                    (I) by inserting after ``section 
                                3501(a)(1) of this title'' the 
                                following: ``or a person made eligible 
                                by the disability of a spouse under 
                                section 3501(a)(1)(E) of this title''; 
                                and
                                    (II) by striking ``or 
                                3501(a)(1)(D)(ii) of this title'' and 
                                inserting ``3501(a)(1)(D)(ii), or 
                                3501(a)(1)(E) of this title'';
                          (ii) in paragraph (1)(B), by adding at the end 
                      the following new clause:
            ``(iii) <<NOTE: Notification.>> The date on which the 
        Secretary notifies the member of the Armed Forces from whom 
        eligibility is derived that the member has a total disability 
        permanent in nature incurred or aggravated in the line of duty 
        in the active military, naval, or air service.''; and
                          (iii) in paragraph (2)--
                                    (I) by striking ``or (D) of this 
                                title'' and inserting ``(D), or (E) of 
                                this title''; and

[[Page 120 STAT. 3427]]

                                    (II) by inserting ``whose 
                                eligibility is based on the death or 
                                disability of a spouse or on a spouse 
                                being listed in one of the categories 
                                referred to in section 3501(a)(1)(C) of 
                                this title'' after ``of this title)'';
                    (C) in subsection (d), by striking ``veteran'' and 
                inserting ``person''; and
                    (D) in subsection (e)--
                          (i) by inserting ``based on a spouse being 
                      listed in one of the categories referred to in 
                      section 3501(a)(1)(C) of this title'' after ``of 
                      this title'';
                          (ii) by inserting ``so'' after ``the spouse 
                      was''; and
                          (iii) by striking ``by the Secretary'' and all 
                      that follows through ``occurs''.
            (4) Section 3540 <<NOTE: 38 USC 3540.>> is amended by 
        striking ``(as defined in subparagraphs (A), (B), and (D) of 
        section 3501(a)(1) of this title)'' and inserting ``(other than 
        a person made eligible under subparagraph (C) of such section by 
        reason of a spouse being listed in one of the categories 
        referred to in that subparagraph)''.
            (5) Section 3563 is amended by striking ``each eligible 
        person defined in section 3501(a)(1)(A) of this title'' and 
        inserting ``each eligible person whose eligibility is based on 
        the death or disability of a parent or on a parent being listed 
        in one of the categories referred to in section 3501(a)(1)(C) of 
        this title''.

    (c) Other Conforming Amendments.--Such title is further amended as 
follows:
            (1) Section 3686(a)(1) is amended by striking ``or (D)'' and 
        inserting ``(D), or (E)''.
            (2) Section 5113(b)(3) is amended--
                    (A) in subparagraph (B) by striking ``section 
                3501(a)(1)'' and all that follows through the end and 
                inserting the following: ``subparagraphs (A), (B), (D), 
                and (E) of section 3501(a)(1) of this title.''; and
                    (B) in subparagraph (C)--
                          (i) by striking ``such veteran's death'' and 
                      inserting ``the death of the person from whom such 
                      eligibility is derived''; and
                          (ii) by striking ``such veteran's service-
                      connected total disability permanent in nature'' 
                      and inserting ``the service-connected total 
                      disability permanent in nature (or, in the case of 
                      a person made eligible under section 
                      3501(a)(1)(E), the total disability permanent in 
                      nature incurred or aggravated in the line of duty 
                      in the active military, naval, or air service) of 
                      the person from whom such eligibility is 
                      derived''.

    (d) <<NOTE: 38 USC 3501 note.>> Effective Date.--The amendments made 
by this section shall apply with respect to a payment of educational 
assistance for a course of education pursued after the date of the 
enactment of this Act.

[[Page 120 STAT. 3428]]

SEC. 302. RESTORATION OF LOST ENTITLEMENT FOR INDIVIDUALS WHO 
            DISCONTINUE A PROGRAM OF EDUCATION BECAUSE OF BEING ORDERED 
            TO FULL-TIME NATIONAL GUARD DUTY.

    (a) Restoration of Entitlement.--Section 3511(a)(2)(B)(i) <<NOTE: 38 
USC 3511.>> is amended by inserting after ``title 10'' the following: 
``or of being involuntarily ordered to full-time National Guard duty 
under section 502(f) of title 32''.

    (b) <<NOTE: 38 USC 3511 note.>> Effective Date.--The amendment made 
by subsection (a) shall apply with respect to a payment of educational 
assistance allowance made after September 11, 2001.

SEC. 303. EXCEPTION FOR INSTITUTIONS OFFERING GOVERNMENT-SPONSORED 
            NONACCREDITED COURSES TO REQUIREMENT OF REFUNDING UNUSED 
            TUITION.

    Section 3676(c)(13) is amended by striking ``prior to completion'' 
and all that follows and inserting the following: ``before completion 
and--
                    ``(A) in the case of an institution (other than (i) 
                a Federal, State, or local Government institution or 
                (ii) an institution described in subparagraph (B)), such 
                policy provides that the amount charged to the eligible 
                person for tuition, fees, and other charges for a 
                portion of the course shall not exceed the approximate 
                pro rata portion of the total charges for tuition, fees, 
                and other charges that the length of the completed 
                portion of the course bears to its total length; or
                    ``(B) in the case of an institution that is a 
                nonaccredited public educational institution, the 
                institution has and maintains a refund policy regarding 
                the unused portion of tuition, fees, and other charges 
                that is substantially the same as the refund policy 
                followed by accredited public educational institutions 
                located within the same State as such institution.''.

SEC. 304. EXTENSION OF WORK-STUDY ALLOWANCE.

    Section 3485(a)(4) is amended by striking ``December 27, 2006'' each 
place it appears and inserting ``June 30, 2007''.

SEC. 305. DEADLINE AND EXTENSION OF REQUIREMENT FOR REPORT ON 
            EDUCATIONAL ASSISTANCE PROGRAM.

    (a) Deadline.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense and the Secretary of 
Veterans Affairs shall each submit to Congress a report containing the 
information specified in subsections (b) and (c) of section 3036 of 
title 38, United States Code.
    (b) Extension of Requirement.--Subsection (d) of section 3036 of 
title 38, United States Code, is amended by striking ``January 1, 2005'' 
and inserting ``January 1, 2011''.

SEC. 306. REPORT ON IMPROVEMENT IN ADMINISTRATION OF EDUCATIONAL 
            ASSISTANCE BENEFITS.

    Not later than 180 days after the date of the enactment of this Act, 
the Secretary of Veterans Affairs shall submit to Congress a report on 
the administration of education benefits, including benefits under 
chapters 30, 31, 32, 34, 35, and 36 of title 38, United States Code, and 
chapters 1606 and 1607 of title 10, United

[[Page 120 STAT. 3429]]

States Code. Such report shall propose methods to streamline the 
processes and procedures of administering such benefits.

SEC. 307. TECHNICAL AMENDMENTS RELATING TO EDUCATION LAWS.

    Section 3485 <<NOTE: 38 USC 3485.>> is amended--
            (1) in subsection (a)(4)(E), by inserting ``or 1607'' after 
        ``chapter 1606'';
            (2) in subsection (b), by striking ``chapter 106'' and 
        inserting ``chapter 1606 or 1607''; and
            (3) in subsection (e)(1)--
                    (A) by striking ``services of the kind described in 
                clauses (A) through (E) of subsection (a)(1) of this 
                section'' and inserting ``a qualifying work-study 
                activity described in subsection (a)(4)''; and
                    (B) by striking ``chapter 106'' and inserting 
                ``chapter 1606 or 1607''.

        TITLE IV--NATIONAL CEMETERY AND MEMORIAL AFFAIRS MATTERS

SEC. 401. PROVISION OF GOVERNMENT MEMORIAL HEADSTONES OR MARKERS AND 
            MEMORIAL INSCRIPTIONS FOR DECEASED DEPENDENT CHILDREN OF 
            VETERANS WHOSE REMAINS ARE UNAVAILABLE FOR BURIAL.

    (a) Provision of Memorial Headstones or Markers.--Subsection (b) of 
section 2306 is amended--
            (1) in paragraph (2), by adding at the end the following new 
        subparagraph:
            ``(C) An eligible dependent child of a veteran.''; and
            (2) by adding at the end the following new paragraph:

    ``(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.''.

    (b) Addition of Memorial Inscription to Headstone or Marker of 
Veteran.--Subsection (f) of such section is amended by inserting ``or 
eligible dependent child'' after ``surviving spouse'' both places it 
appears.
    (c) <<NOTE: 38 USC 2306 note.>> Effective Date.--The amendments made 
by subsections (a) and (b) shall apply with respect to individuals dying 
after the date of the enactment of this Act.

SEC. 402. PROVISION OF GOVERNMENT MARKERS FOR MARKED GRAVES OF VETERANS 
            AT PRIVATE CEMETERIES.

    (a) Extension of Authority.--Paragraph (3) of subsection (d) of 
section 2306 is amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
    (b) Provision of Headstone or Marker.--
            (1) In general.--Such subsection is further amended--
                    (A) in paragraph (1)--

[[Page 120 STAT. 3430]]

                          (i) in the first sentence, by striking 
                      ``Government marker'' and inserting ``Government 
                      headstone or marker''; and
                          (ii) in the second sentence, by inserting 
                      ``headstone or'' before ``marker'' each place it 
                      appears; and
                    (B) in paragraph (2), by inserting ``headstone or'' 
                before ``marker''.
            (2) Conforming amendment.--Subsection (g)(3) of such section 
        is amended by inserting ``headstone or'' before ``marker''.

    (c) Placement of Headstone or Marker.--The second sentence of 
subsection (d)(1) of such section, as amended by subsection 
(b)(1)(A)(ii), is further amended by inserting before the period the 
following: ``, 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''.
    (d) Delivery of Headstone or Marker.--Subsection (d)(2) of such 
section, as amended by subsection (b)(1)(B), is further amended by 
inserting before the period the following: ``or to a receiving agent for 
delivery to the cemetery''.
    (e) Repeal of Obsolete Report Requirement.--Subsection (d) of such 
section is further amended by striking paragraph (4).
    (f) Scope of Headstones and Markers Furnished.--Subsection (d) of 
such section is further amended by inserting after paragraph (3) the 
following new paragraph (4):
    ``(4) 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.''.

SEC. 403. ELIGIBILITY OF INDIAN TRIBAL ORGANIZATIONS FOR GRANTS FOR THE 
            ESTABLISHMENT OF VETERANS CEMETERIES ON TRUST LANDS.

    Section 2408 <<NOTE: 38 USC 2408.>> is amended by adding at the end 
the following new subsection:

    ``(f)(1) The Secretary may make grants under this subsection to any 
tribal organization to assist the tribal organization in establishing, 
expanding, or improving veterans' cemeteries on trust land owned by, or 
held in trust for, the tribal organization.
    ``(2) Grants under this subsection shall be made in the same manner, 
and under the same conditions, as grants to States are made under the 
preceding provisions of this section.
    ``(3) For purposes of this subsection:
            ``(A) The term `tribal organization' has the meaning given 
        that term in section 3765(4) of this title.
            ``(B) The term `trust land' has the meaning given that term 
        in section 3765(1) of this title.''.

SEC. 404. REMOVAL OF REMAINS OF RUSSELL WAYNE WAGNER FROM ARLINGTON 
            NATIONAL CEMETERY.

    (a) Removal of Remains.--The Secretary of the Army shall remove the 
remains of Russell Wayne Wagner from Arlington National Cemetery.
    (b) Notification of Next-of-Kin.--The Secretary of the Army shall--
            (1) notify the next-of-kin of record for Russell Wayne 
        Wagner of the impending removal of his remains; and
            (2) upon removal, relinquish the remains to the next-of-kin 
        of record for Russell Wayne Wagner or, if the next-of-

[[Page 120 STAT. 3431]]

        kin of record for Russell Wayne Wagner is unavailable, arrange 
        for an appropriate disposition of the remains.

               TITLE V--HOUSING AND SMALL BUSINESS MATTERS

SEC. 501. RESIDENTIAL COOPERATIVE HOUSING UNITS.

    (a) Housing Benefits for Cooperative Housing Units.--Subsection (a) 
of section 3710 <<NOTE: 38 USC 3710.>> is amended by inserting after 
paragraph (11) the following new paragraph:
            ``(12) With respect to a loan guaranteed after the date of 
        the enactment of this paragraph and before the date that is five 
        years after that date, to purchase stock or membership in a 
        cooperative housing corporation for the purpose of entitling the 
        veteran to occupy for dwelling purposes a single family 
        residential unit in a development, project, or structure owned 
        or leased by such corporation, in accordance with subsection 
        (h).''.

    (b) Conditions of Housing Benefits for Cooperative Housing Units.--
Such section is further amended by adding at the end the following new 
subsection:
    ``(h)(1) A loan may not be guaranteed under subsection (a)(12) 
unless--
            ``(A) the development, project, or structure of the 
        cooperative housing corporation complies with such criteria as 
        the Secretary prescribes in regulations; and
            ``(B) the dwelling unit that the purchase of stock or 
        membership in the development, project, or structure of the 
        cooperative housing corporation entitles the purchaser to occupy 
        is a single family residential unit.

    ``(2) In this subsection, the term `cooperative housing corporation' 
has the meaning given such term in section 216(b)(1) of the Internal 
Revenue Code of 1986.
    ``(3) When applying the term `value of the property' to a loan 
guaranteed under subsection (a)(12), such term means the appraised value 
of the stock or membership entitling the purchaser to the permanent 
occupancy of the dwelling unit in the development, project, or structure 
of the cooperative housing corporation.''.

SEC. 502. DEPARTMENT OF VETERANS AFFAIRS GOALS FOR PARTICIPATION BY 
            SMALL BUSINESSES OWNED AND CONTROLLED BY VETERANS IN 
            PROCUREMENT CONTRACTS.

    (a) Goals.--
            (1) In general.--Subchapter II of chapter 81 is amended by 
        adding at the end the following new section:

``Sec. 8127. Small business concerns owned and controlled by veterans: 
                        contracting goals and preferences

    ``(a) Contracting Goals.--(1) In order to increase contracting 
opportunities for small business concerns owned and controlled by 
veterans and small business concerns owned and controlled by veterans 
with service-connected disabilities, the Secretary shall--
            ``(A) establish a goal for each fiscal year for 
        participation in Department contracts (including subcontracts) 
        by small business concerns owned and controlled by veterans who 
        are not

[[Page 120 STAT. 3432]]

        veterans with service-connected disabilities in accordance with 
        paragraph (2); and
            ``(B) establish a goal for each fiscal year for 
        participation in Department contracts (including subcontracts) 
        by small business concerns owned and controlled by veterans with 
        service-connected disabilities in accordance with paragraph (3).

    ``(2) The goal for a fiscal year for participation under paragraph 
(1)(A) shall be determined by the Secretary.
    ``(3) The goal for a fiscal year for participation under paragraph 
(1)(B) shall be not less than the Government-wide goal for that fiscal 
year for participation by small business concerns owned and controlled 
by veterans with service-connected disabilities under section 15(g)(1) 
of the Small Business Act (15 U.S.C. 644(g)(1)).
    ``(4) <<NOTE: Review.>> The Secretary shall establish a review 
mechanism to ensure that, in the case of a subcontract of a Department 
contract that is counted for purposes of meeting a goal established 
pursuant to this section, the subcontract was actually awarded to a 
business concern that may be counted for purposes of meeting that goal.

    ``(b) Use of Noncompetitive Procedures for Certain Small 
Contracts.--For purposes of meeting the goals under subsection (a), and 
in accordance with this section, in entering into a contract with a 
small business concern owned and controlled by veterans for an amount 
less than the simplified acquisition threshold (as defined in section 4 
of the Office of Federal Procurement Policy Act (41 U.S.C. 403)), a 
contracting officer of the Department may use procedures other than 
competitive procedures.
    ``(c) Sole Source Contracts for Contracts Above Simplified 
Acquisition Threshold.--For purposes of meeting the goals under 
subsection (a), and in accordance with this section, a contracting 
officer of the Department may award a contract to a small business 
concern owned and controlled by veterans using procedures other than 
competitive procedures if--
            ``(1) such concern is determined to be a responsible source 
        with respect to performance of such contract opportunity;
            ``(2) the anticipated award price of the contract (including 
        options) will exceed the simplified acquisition threshold (as 
        defined in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403)) but will not exceed $5,000,000; and
            ``(3) in the estimation of the contracting officer, the 
        contract award can be made at a fair and reasonable price that 
        offers best value to the United States.

    ``(d) Use of Restricted Competition.--Except as provided in 
subsections (b) and (c), for purposes of meeting the goals under 
subsection (a), and in accordance with this section, a contracting 
officer of the Department shall award contracts on the basis of 
competition restricted to small business concerns owned and controlled 
by veterans if the contracting officer has a reasonable expectation that 
two or more small business concerns owned and controlled by veterans 
will submit offers and that the award can be made at a fair and 
reasonable price that offers best value to the United States.
    ``(e) Eligibility of Small Business Concerns.--A small business 
concern may be awarded a contract under this section only if the small 
business concern and the veteran owner of the small business concern are 
listed in the database of veteran-owned businesses maintained by the 
Secretary under subsection (f).

[[Page 120 STAT. 3433]]

    ``(f) Database of Veteran-Owned Businesses.--(1) Subject to 
paragraphs (2) through (6), the Secretary shall maintain a database of 
small business concerns owned and controlled by veterans and the veteran 
owners of such business concerns.
    ``(2) To be eligible for inclusion in the database, such a veteran 
shall submit to the Secretary such information as the Secretary may 
require with respect to the small business concern or the veteran.
    ``(3) Information maintained in the database shall be submitted on a 
voluntary basis by such veterans.
    ``(4) In maintaining the database, the Secretary shall carry out at 
least the following two verification functions:
            ``(A) Verification that each small business concern listed 
        in the database is owned and controlled by veterans.
            ``(B) In the case of a veteran who indicates a service-
        connected disability, verification of the service-disabled 
        status of such veteran.

    ``(5) <<NOTE: Notification.>> The Secretary shall make the database 
available to all Federal departments and agencies and shall notify each 
such department and agency of the availability of the database.

    ``(6) If the Secretary determines that the public dissemination of 
certain types of information maintained in the database is 
inappropriate, the Secretary shall take such steps as are necessary to 
maintain such types of information in a secure and confidential manner.
    ``(g) Enforcement Penalties for Misrepresentation.--Any business 
concern that is determined by the Secretary to have misrepresented the 
status of that concern as a small business concern owned and controlled 
by veterans or as a small business concern owned and controlled by 
service-disabled veterans for purposes of this subsection shall be 
debarred from contracting with the Department for a reasonable period of 
time, as determined by the Secretary.
    ``(h) Treatment of Businesses After Death of Veteran-Owner.--(1) 
Subject to paragraph (3), if the death of a veteran causes a small 
business concern to be less than 51 percent owned by one or more 
veterans, the surviving spouse of such veteran who acquires ownership 
rights in such small business concern shall, for the period described in 
paragraph (2), be treated as if the surviving spouse were that veteran 
for the purpose of maintaining the status of the small business concern 
as a small business concern owned and controlled by veterans.
    ``(2) The period referred to in paragraph (1) is the period 
beginning on the date on which the veteran dies and ending on the 
earliest of the following dates:
            ``(A) The date on which the surviving spouse remarries.
            ``(B) The date on which the surviving spouse relinquishes an 
        ownership interest in the small business concern.
            ``(C) The date that is ten years after the date of the 
        veteran's death.

    ``(3) Paragraph (1) only applies to a surviving spouse of a veteran 
with a service-connected disability rated as 100 percent disabling or 
who dies as a result of a service-connected disability.
    ``(i) <<NOTE: Applicability.>> Priority for Contracting 
Preferences.--Preferences for awarding contracts to small business 
concerns shall be applied in the following order of priority:

[[Page 120 STAT. 3434]]

            ``(1) Contracts awarded pursuant to subsection (b), (c), or 
        (d) to small business concerns owned and controlled by veterans 
        with service-connected disabilities.
            ``(2) Contracts awarded pursuant to subsection (b), (c), or 
        (d) to small business concerns owned and controlled by veterans 
        that are not covered by paragraph (1).
            ``(3) Contracts awarded pursuant to--
                    ``(A) section 8(a) of the Small Business Act (15 
                U.S.C. 637(a)); or
                    ``(B) section 31 of such Act (15 U.S.C. 657a).
            ``(4) Contracts awarded pursuant to any other small business 
        contracting preference.

    ``(j) Annual Reports.--Not later than December 31 each year, the 
Secretary shall submit to Congress a report on small business 
contracting during the fiscal year ending in such year. Each report 
shall include, for the fiscal year covered by such report, the 
following:
            ``(1) The percentage of the total amount of all contracts 
        awarded by the Department during that fiscal year that were 
        awarded to small business concerns owned and controlled by 
        veterans.
            ``(2) The percentage of the total amount of all such 
        contracts awarded to small business concerns owned and 
        controlled by veterans with service-connected disabilities.
            ``(3) The percentage of the total amount of all contracts 
        awarded by each Administration of the Department during that 
        fiscal year that were awarded to small business concerns owned 
        and controlled by veterans.
            ``(4) The percentage of the total amount of all contracts 
        awarded by each such Administration during that fiscal year that 
        were awarded to small business concerns owned and controlled by 
        veterans with service-connected disabilities.

    ``(k) Definitions.--In this section:
            ``(1) The term `small business concern' has the meaning 
        given that term under section 3 of the Small Business Act (15 
        U.S.C. 632).
            ``(2) The term `small business concern owned and controlled 
        by veterans' means a small business concern--
                    ``(A)(i) not less than 51 percent of which is owned 
                by one or more veterans or, in the case of a publicly 
                owned business, not less than 51 percent of the stock of 
                which is owned by one or more veterans; and
                    ``(ii) the management and daily business operations 
                of which are controlled by one or more veterans; or
                    ``(B) not less than 51 percent of which is owned by 
                one or more veterans with service-connected disabilities 
                that are permanent and total who are unable to manage 
                the daily business operations of such concern or, in the 
                case of a publicly owned business, not less than 51 
                percent of the stock of which is owned by one or more 
                such veterans.''.

[[Page 120 STAT. 3435]]

            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the item 
        relating to section 8126 the following new item:

``8127. Small business concerns owned and controlled by veterans: 
           contracting goals and preferences.''.

    (b) <<NOTE: 38 USC 8127 note.>> Transition Rule.--A small business 
concern that is listed in any small business database maintained by the 
Secretary of Veterans Affairs on the date of the enactment of this Act 
shall be presumed to be eligible for inclusion in the database under 
subsection (f) of section 8127 of title 38, United States Code, as added 
by subsection (a), during the period beginning on the effective date of 
that section and ending one year after such effective date. Such a small 
business concern may be removed from the database during that period if 
it is found not to be a small business concern owned and controlled by 
veterans (as defined in subsection (k) of such section).

    (c) Comptroller General Study and Report.--
            (1) Study required.--During the first three fiscal years for 
        which this section is in effect, the Comptroller General shall 
        conduct a study on the efforts made by the Secretary of Veterans 
        Affairs to meet the contracting goals established pursuant to 
        section 8127 of title 38, United States Code, as added by 
        subsection (a).
            (2) Information to congress on study.--On or before January 
        31 of each year during which the Comptroller General conducts 
        the study under paragraph (1), the Comptroller General shall 
        brief Congress on such study, placing special emphasis on any 
        structural or organizational issues within the Department of 
        Veterans Affairs that might act as an impediment to reaching 
        such contracting goals.
            (3) Report.--Not later than 180 days after the end of the 
        three-year period during which the Comptroller General conducts 
        the study under paragraph (1), the Comptroller General shall 
        submit to Congress a report on the findings of such study.

    (d) <<NOTE: 38 USC 8127 note.>> Effective Date.--This section and 
the amendments made by this section shall take effect on the date that 
is 180 days after the date of the enactment of this Act.

SEC. 503. DEPARTMENT OF VETERANS AFFAIRS CONTRACTING PRIORITY FOR 
            VETERAN-OWNED SMALL BUSINESSES.

    (a) Priority for Veteran-Owned Small Businesses.--
            (1) In general.--Subchapter II of chapter 81, as amended by 
        section 502 of this Act, is further amended by adding at the end 
        the following new section:

``Sec. 8128. Small business concerns owned and controlled by veterans: 
                        contracting priority

    ``(a) Contracting Priority.--In procuring goods and services 
pursuant to a contracting preference under this title or any other 
provision of law, the Secretary shall give priority to a small business 
concern owned and controlled by veterans, if such business concern also 
meets the requirements of that contracting preference.
    ``(b) Definition.--For purposes of this section, the term `small 
business concern owned and controlled by veterans' means a small

[[Page 120 STAT. 3436]]

business concern that is included in the small business database 
maintained by the Secretary under section 8127(f) of this title.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter, as so amended, is further amended by 
        inserting after the item relating to section 8127 the following 
        new item:

``8128. Small business concerns owned and controlled by veterans: 
           contracting priority.''.

    (b) <<NOTE: 38 USC 8128 note.>> Effective Date.--This section and 
the amendments made by this section shall take effect on the date that 
is 180 days after the date of the enactment of this Act.

                TITLE VI--EMPLOYMENT AND TRAINING MATTERS

SEC. 601. TRAINING OF NEW DISABLED VETERANS' OUTREACH PROGRAM 
            SPECIALISTS AND LOCAL VETERANS' EMPLOYMENT REPRESENTATIVES 
            BY NVTI REQUIRED.

    (a) Training Required.--Section 4102A(c) <<NOTE: 38 USC 4102A.>> is 
amended by adding at the end the following new paragraph:

    ``(8)(A) As a condition of a grant or contract under which funds are 
made available to a State in order to carry out section 4103A or 4104 of 
this title, the Secretary shall require the State to require each 
employee hired by the State who is assigned to perform the duties of a 
disabled veterans' outreach program specialist or a local veterans' 
employment representative under this chapter to satisfactorily complete 
training provided by the National Veterans' Employment and Training 
Services Institute during the three-year period that begins on the date 
on which the employee is so assigned.
    ``(B) For any employee described in subparagraph (A) who does not 
complete such training during such period, the Secretary may reduce by 
an appropriate amount the amount made available to the State employing 
that employee.
    ``(C) The Secretary may establish such reasonable exceptions to the 
completion of training otherwise required under subparagraph (A) as the 
Secretary considers appropriate.''.
    (b) Submission of Employee Training Information Required.--Section 
4102A(c)(2)(A) is amended--
            (1) by redesignating clause (iii) as clause (iv); and
            (2) by inserting after clause (ii) the following new clause 
        (iii):
            ``(iii) For each employee of the State who is assigned to 
        perform the duties of a disabled veterans' outreach program 
        specialist or a local veterans' employment representative under 
        this chapter--
                    ``(I) the date on which the employee is so assigned; 
                and
                    ``(II) whether the employee has satisfactorily 
                completed such training by the National Veterans' 
                Employment and Training Services Institute as the 
                Secretary requires for purposes of paragraph (8).''.

    (c) <<NOTE: 38 USC 4102A note.>> Applicability.--Paragraph (8) of 
section 4102A(c) of title 38, United States Code, as added by subsection 
(a), and clause (iii) of section 4102A(c)(2)(A) of such title, as added 
by subsection

[[Page 120 STAT. 3437]]

(b), shall apply with respect to a State employee assigned to perform 
the duties of a disabled veterans' outreach program specialist or a 
local veterans' employment representative under chapter 41 of such title 
who is so assigned on or after January 1, 2006.

SEC. 602. RULES FOR PART-TIME EMPLOYMENT FOR DISABLED VETERANS' OUTREACH 
            PROGRAM SPECIALISTS AND LOCAL VETERANS' EMPLOYMENT 
            REPRESENTATIVES.

    (a) Disabled Veterans' Outreach Program Specialists.--Section 
4103A <<NOTE: 38 USC 4103A.>> is amended by adding at the end the 
following new subsection:

    ``(c) Part-Time Employees.--A part-time disabled veterans' outreach 
program specialist shall perform the functions of a disabled veterans' 
outreach program specialist under this section on a half-time basis.''.
    (b) Local Veterans' Employment Representatives.--Section 4104 is 
amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):

    ``(d) Part-Time Employees.--A part-time local veterans' employment 
representative shall perform the functions of a local veterans' 
employment representative under this section on a half-time basis.''.
    (c) <<NOTE: 38 USC 4103A note.>> Effective Date.--Section 4103A(c) 
of title 38, United States Code, as added by subsection (a), and section 
4104(d) of such title, as amended by subsection (b), shall apply with 
respect to pay periods beginning after the date that is 180 days after 
the date of the enactment of this Act.

SEC. 603. PERFORMANCE INCENTIVE AWARDS FOR EMPLOYMENT SERVICE OFFICES.

    (a) Provision of Incentives to Employment Service Offices.--Section 
4112 is amended--
            (1) in subsection (a)(1)(B), by inserting ``and employment 
        service offices'' after ``recognize eligible employees''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2)--
                          (i) by striking ``is'' and inserting ``in the 
                      case of such an award made to an eligible 
                      employee, shall be''; and
                          (ii) by striking the period at the end and 
                      inserting the following: ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) in the case of such an award made to an employment 
        service office, may be used by that employment service office 
        for any purpose.''.

    (b) Conforming Amendment.--The heading for subsection (c) of such 
section is amended to read as follows: ``Administration and Use of 
Awards.--''.

SEC. 604. DEMONSTRATION PROJECT ON CREDENTIALING AND LICENSURE OF 
            VETERANS.

    (a) Establishment of Demonstration Project.--
            (1) In general.--Chapter 41 is amended by adding at the end 
        the following new section:

[[Page 120 STAT. 3438]]

``Sec. 4114. Credentialing and licensure of veterans: demonstration 
                        project

    ``(a) Demonstration Project Authorized.--The Assistant Secretary for 
Veterans' Employment and Training may carry out a demonstration project 
on credentialing in accordance with this section for the purpose of 
facilitating the seamless transition of members of the Armed Forces from 
service on active duty to civilian employment.
    ``(b) Identification of Military Occupational Specialties and 
Associated Credentials and Licenses.--(1) The Assistant Secretary shall 
select not less than 10 military occupational specialties for purposes 
of the demonstration project. Each specialty so selected by the 
Assistant Secretary shall require a skill or set of skills that is 
required for civilian employment in an industry with high growth or high 
worker demand.
    ``(2) The Assistant Secretary shall consult with appropriate 
Federal, State, and industry officials to identify requirements for 
credentials, certifications, and licenses that require a skill or set of 
skills required by a military occupational specialty selected under 
paragraph (1).
    ``(3) The Assistant Secretary shall analyze the requirements 
identified under paragraph (2) to determine which requirements may be 
satisfied by the skills, training, or experience acquired by members of 
the Armed Forces with the military occupational specialties selected 
under paragraph (1).
    ``(c) Elimination of Barriers to Credentialing and Licensure.--The 
Assistant Secretary shall cooperate with appropriate Federal, State, and 
industry officials to reduce or eliminate any barriers to providing a 
credential, certification, or license to a veteran who acquired any 
skill, training, or experience while serving as a member of the Armed 
Forces with a military occupational specialty selected under subsection 
(b)(1) that satisfies the Federal and State requirements for the 
credential, certification, or license.
    ``(d) Task Force.--The Assistant Secretary may establish a task 
force of individuals with appropriate expertise to provide assistance to 
the Assistant Secretary in carrying out this section.
    ``(e) Consultation.--In carrying out this section, the Assistant 
Secretary shall consult with the Secretary of Defense, the Secretary of 
Veterans Affairs, appropriate Federal and State officials, private-
sector employers, labor organizations, and industry trade associations.
    ``(f) Contract Authority.--For purposes of carrying out any part of 
the demonstration project under this section, the Assistant Secretary 
may enter into a contract with a public or private entity with 
appropriate expertise.
    ``(g) Period of Project.--The period during which the Assistant 
Secretary may carry out the demonstration project under this section 
shall be the period beginning on the date that is 60 days after the date 
of the enactment of the Veterans Benefits, Health Care, and Information 
Technology Act of 2006 and ending on September 30, 2009.
    ``(h) Funding.--The Assistant Secretary may carry out the 
demonstration project under this section utilizing unobligated funds 
that are appropriated in accordance with the authorization set forth in 
section 4106 of this title.''.

[[Page 120 STAT. 3439]]

            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``4114. Credentialing and licensure of veterans: demonstration 
           project.''.

    (b) Membership of Advisory Committee on Veterans Employment, 
Training, and Employer Outreach.--Section 4110(c)(1)(A) <<NOTE: 38 USC 
4110.>> is amended--
            (1) by striking ``Six'' and inserting ``Seven''; and
            (2) by adding at the end the following new clause:
                    ``(vii) The National Governors Association.''.

SEC. 605. <<NOTE: Deadline. 38 USC 4215 note.>> DEPARTMENT OF LABOR 
            IMPLEMENTATION OF REGULATIONS FOR PRIORITY OF SERVICE.

    Not later than two years after the date of the enactment of this 
Act, the Secretary of Labor shall prescribe regulations to implement 
section 4215 of title 38, United States Code.

                 TITLE VII--HOMELESS VETERANS ASSISTANCE

SEC. 701. <<NOTE: 38 USC 2001 note.>> REAFFIRMATION OF NATIONAL GOAL TO 
            END HOMELESSNESS AMONG VETERANS.

    (a) Reaffirmation.--Congress reaffirms the national goal to end 
chronic homelessness among veterans within a decade of the enactment of 
the Homeless Veterans Comprehensive Assistance Act of 2001 (Public Law 
107-95; 115 Stat. 903).
    (b) Reaffirmation of Encouragement of Cooperative Efforts.--Congress 
reaffirms its encouragement, as specified in the Homeless Veterans 
Comprehensive Assistance Act of 2001 (Public Law 107-95; 115 Stat. 903), 
that all departments and agencies of the Federal, State, and local 
governments, quasi-governmental organizations, private and public sector 
entities, including community-based organizations, faith-based 
organizations, and individuals, work cooperatively to end chronic 
homelessness among veterans.

SEC. 702. SENSE OF CONGRESS ON THE RESPONSE OF THE FEDERAL GOVERNMENT TO 
            THE NEEDS OF HOMELESS VETERANS.

    It is the sense of Congress that--
            (1) homelessness is a significant problem in the veterans 
        community and veterans are disproportionately represented among 
        the homeless population;
            (2) while many effective programs assist homeless veterans 
        to become, once again, productive and self-sufficient members of 
        their communities and society, all the essential services, 
        assistance, and support that homeless veterans require are not 
        currently provided;
            (3) federally funded programs for homeless veterans should 
        be held accountable for achieving clearly defined results;
            (4) Federal efforts to assist homeless veterans should 
        include prevention of homelessness;
            (5) Federal efforts regarding homeless veterans should be 
        particularly vigorous where women veterans have minor children 
        in their care;

[[Page 120 STAT. 3440]]

            (6) Federal agencies, particularly the Department of 
        Veterans Affairs, the Department of Labor, and the Department of 
        Housing and Urban Development, should cooperate more fully to 
        address the problem of homelessness among veterans; and
            (7) the programs reauthorized by this title provide 
        important housing and services to homeless veterans.

SEC. 703. AUTHORITY TO MAKE GRANTS FOR COMPREHENSIVE SERVICE PROGRAMS 
            FOR HOMELESS VETERANS.

    (a) Permanent Authority.--Section 2011(a) <<NOTE: 38 USC 2011.>> is 
amended--
            (1) by striking paragraph (2); and
            (2) in paragraph (1)--
                    (A) by striking ``(1)''; and
                    (B) by redesignating subparagraphs (A) through (D) 
                as paragraphs (1) through (4), respectively.

    (b) Authorization of Appropriations.--The text of section 2013 is 
amended to read as follows: ``There is authorized to be appropriated to 
carry out this subchapter $130,000,000 for fiscal year 2007 and each 
fiscal year thereafter.''.

SEC. 704. EXTENSION OF TREATMENT AND REHABILITATION FOR SERIOUSLY 
            MENTALLY ILL AND HOMELESS VETERANS.

    (a) Extension of Authority for General Treatment.--Section 2031(b) 
is amended by striking ``December 31, 2006'' and inserting ``December 
31, 2011''.
    (b) Extension of Authority for Additional Services.--Section 2033(d) 
is amended by striking ``December 31, 2006'' and inserting ``December 
31, 2011''.

SEC. 705. EXTENSION OF AUTHORITY FOR TRANSFER OF PROPERTIES OBTAINED 
            THROUGH FORECLOSURE OF HOME MORTGAGES.

    Section 2041(c) is amended by striking ``December 31, 2008'' and 
inserting ``December 31, 2011''.

SEC. 706. EXTENSION OF FUNDING FOR GRANT PROGRAM FOR HOMELESS VETERANS 
            WITH SPECIAL NEEDS.

    Section 2061(c)(1) is amended--
            (1) by striking ``Medical Care'' and inserting ``Medical 
        Services''; and
            (2) by striking ``fiscal years 2003, 2004, and 2005'' and 
        inserting ``fiscal years 2007 through 2011''.

SEC. 707. EXTENSION OF FUNDING FOR HOMELESS VETERAN SERVICE PROVIDER 
            TECHNICAL ASSISTANCE PROGRAM.

    Subsection (b) of section 2064 is amended to read as follows:
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated $1,000,000 for each of fiscal years 2007 through 2012 to 
carry out the program under this section.''.

SEC. 708. ADDITIONAL ELEMENT IN ANNUAL REPORT ON ASSISTANCE TO HOMELESS 
            VETERANS.

    Section 2065(b) is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph (5):

[[Page 120 STAT. 3441]]

            ``(5) Information on the efforts of the Secretary to 
        coordinate the delivery of housing and services to homeless 
        veterans with other Federal departments and agencies, 
        including--
                    ``(A) the Department of Defense;
                    ``(B) the Department of Health and Human Services;
                    ``(C) the Department of Housing and Urban 
                Development;
                    ``(D) the Department of Justice;
                    ``(E) the Department of Labor;
                    ``(F) the Interagency Council on Homelessness;
                    ``(G) the Social Security Administration; and
                    ``(H) any other Federal department or agency with 
                which the Secretary coordinates the delivery of housing 
                and services to homeless veterans.''.

SEC. 709. ADVISORY COMMITTEE ON HOMELESS VETERANS.

    (a) Additional Ex Officio Members.--Subsection (a)(3) of section 
2066 <<NOTE: 38 USC 2066.>> is amended by adding at the end the 
following new subparagraphs:
            ``(E) The Executive Director of the Interagency Council on 
        Homelessness (or a representative of the Executive Director).
            ``(F) The Under Secretary for Health (or a representative of 
        the Under Secretary after consultation with the Director of the 
        Office of Homeless Veterans Programs).
            ``(G) The Under Secretary for Benefits (or a representative 
        of the Under Secretary after consultation with the Director of 
        the Office of Homeless Veterans Programs).''.

    (b) Extension.--Subsection (d) of such section is amended by 
striking ``December 31, 2006'' and inserting ``December 30, 2011''.

SEC. 710. RENTAL ASSISTANCE VOUCHERS FOR VETERANS AFFAIRS SUPPORTED 
            HOUSING PROGRAM.

    Section (8)(o)(19)(B) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(19)(B)) is amended to read as follows:
                    ``(B) Amount.--The amount specified in this 
                subparagraph is--
                          ``(i) for fiscal year 2007, the amount 
                      necessary to provide 500 vouchers for rental 
                      assistance under this subsection;
                          ``(ii) for fiscal year 2008, the amount 
                      necessary to provide 1,000 vouchers for rental 
                      assistance under this subsection;
                          ``(iii) for fiscal year 2009, the amount 
                      necessary to provide 1,500 vouchers for rental 
                      assistance under this subsection;
                          ``(iv) for fiscal year 2010, the amount 
                      necessary to provide 2,000 vouchers for rental 
                      assistance under this subsection; and
                          ``(v) for fiscal year 2011, the amount 
                      necessary to provide 2,500 vouchers for rental 
                      assistance under this subsection.''.

[[Page 120 STAT. 3442]]

                    TITLE VIII--CONSTRUCTION MATTERS

             Subtitle A--Construction and Lease Authorities

SEC. 801. AUTHORIZATION OF FISCAL YEAR 2006 MAJOR MEDICAL FACILITY 
            PROJECTS.

    (a) In General.--The Secretary of Veterans Affairs may carry out the 
following major medical facility projects in fiscal year 2006, with each 
project to be carried out in the amount specified for that project:
            (1) Restoration, new construction or replacement of the 
        medical center facility for the Department of Veterans Affairs 
        Medical Center, New Orleans, Louisiana, due to damage from 
        Hurricane Katrina in an amount not to exceed $300,000,000. The 
        Secretary is authorized to carry out the project in or near New 
        Orleans as a collaborative effort consistent with the New 
        Orleans Collaborative Opportunities Study Group Report dated 
        June 12, 2006.
            (2) Restoration of the Department of Veterans Affairs 
        Medical Center, Biloxi, Mississippi, and consolidation of 
        services performed at the Department of Veterans Affairs Medical 
        Center, Gulfport, Mississippi, in an amount not to exceed 
        $310,000,000.
            (3) Replacement of the Department of Veterans Affairs 
        Medical Center, Denver, Colorado, in an amount not to exceed 
        $98,000,000.

    (b) Report on Replacement of Department of Veterans Affairs Medical 
Center, Denver, Colorado.--Not later than 180 days 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 identifying 
and outlining the various options available to the Department of 
Veterans Affairs for replacing the current Department of Veterans 
Affairs Medical Center, Denver, Colorado. The report shall include the 
following:
            (1) The feasibility of entering into a partnership with a 
        Federal, State, or local governmental agency, or a suitable non-
        profit organization, for the construction and operation of a new 
        facility.
            (2) The medical, legal, and financial implications of each 
        of the options identified, including recommendations regarding 
        any statutory changes necessary for the Department of Veterans 
        Affairs to carry out any of the options identified.
            (3) A detailed cost-benefit analysis of each of the options 
        identified.
            (4) Estimates regarding the length of time and associated 
        costs needed to complete such a facility under each of the 
        options identified.

[[Page 120 STAT. 3443]]

SEC. 802. EXTENSION OF AUTHORIZATION FOR CERTAIN MAJOR MEDICAL FACILITY 
            CONSTRUCTION PROJECTS PREVIOUSLY AUTHORIZED IN CONNECTION 
            WITH CAPITAL ASSET REALIGNMENT INITIATIVE.

    The Secretary of Veterans Affairs may carry out the following major 
medical facility projects, with each such project to be carried out in 
the amount specified for that project:
            (1) Construction of an outpatient clinic and regional office 
        at the Department of Veterans Affairs Medical Center, Anchorage, 
        Alaska, in an amount not to exceed $75,270,000.
            (2) Consolidation of clinical and administrative functions 
        of the Department of Veterans Affairs Medical Center, Cleveland, 
        Ohio, and the Department of Veterans Affairs Medical Center in 
        Brecksville, Ohio, in an amount not to exceed $102,300,000.
            (3) Construction of the Extended Care Building at the 
        Department of Veterans Affairs Medical Center, Des Moines, Iowa, 
        in an amount not to exceed $25,000,000.
            (4) Renovation of patient wards at the Department of 
        Veterans Affairs Medical Center, Durham, North Carolina, in an 
        amount not to exceed $9,100,000.
            (5) Correction of patient privacy deficiencies at the 
        Department of Veterans Affairs Medical Center, Gainesville, 
        Florida, in an amount not to exceed $85,200,000.
            (6) 7th and 8th floor wards modernization addition at the 
        Department of Veterans Affairs Medical Center, Indianapolis, 
        Indiana, in an amount not to exceed $27,400,000.
            (7) Construction of a new Medical Center Facility at the 
        Department of Veterans Affairs Medical Center, Las Vegas, 
        Nevada, in an amount not to exceed $406,000,000.
            (8) Construction of an ambulatory surgery/outpatient 
        diagnostic support center in the Gulf South Submarket of 
        Veterans Integrated Service Network (VISN) 8 and completion of 
        Phase I land purchase, Lee County, Florida, in an amount not to 
        exceed $65,100,000.
            (9) Seismic corrections, Buildings 7 and 126 at the 
        Department of Veterans Affairs Medical Center, Long Beach, 
        California, in an amount not to exceed $107,845,000.
            (10) Seismic Corrections, Buildings 500 and 501 at the 
        Department of Veterans Affairs Medical Center, Los Angeles, 
        California, in an amount not to exceed $79,900,000.
            (11) Construction of a new medical center facility in the 
        Orlando, Florida, area in an amount not to exceed $377,700,000.
            (12) Consolidation of campuses at the University Drive and 
        H. John Heinz III divisions, Pittsburgh, Pennsylvania, in an 
        amount not to exceed $189,205,000.
            (13) Ward upgrades and expansion at the Department of 
        Veterans Affairs Medical Center, San Antonio, Texas, in an 
        amount not to exceed $19,100,000.
            (14) Construction of a spinal cord injury center at the 
        Department of Veterans Affairs Medical Center, Syracuse, New 
        York, in an amount not to exceed $77,700,000.
            (15) Upgrade essential electrical distribution systems at 
        the Department of Veterans Affairs Medical Center, Tampa, 
        Florida, in an amount not to exceed $49,000,000.

[[Page 120 STAT. 3444]]

            (16) Expansion of the spinal cord injury center addition at 
        the Department of Veterans Affairs Medical Center, Tampa, 
        Florida, in an amount not to exceed $7,100,000.
            (17) Blind Rehabilitation and Psychiatric Bed renovation and 
        new construction project at the Department of Veterans Affairs 
        Medical Center, Temple, Texas, in an amount not to exceed 
        $56,000,000.

SEC. 803. AUTHORIZATION OF FISCAL YEAR 2007 MAJOR MEDICAL FACILITY 
            PROJECTS.

    The Secretary of Veterans Affairs may carry out the following major 
medical facility projects in fiscal year 2007 in the amount specified 
for each project:
            (1) Seismic Corrections, Nursing Home Care Unit and 
        Dietetics at the Department of Veterans Affairs Medical Center, 
        American Lake, Washington, in an amount not to exceed 
        $38,220,000.
            (2) Replacement of Operating Suite at the Department of 
        Veterans Affairs Medical Center, Columbia, Missouri, in an 
        amount not to exceed $25,830,000.
            (3) Construction of a new clinical addition at the 
        Department of Veterans Affairs Medical Center, Fayetteville, 
        Arkansas, in an amount not to exceed $56,163,000.
            (4) Construction of Spinal Cord Injury Center at the 
        Department of Veterans Affairs Medical Center, Milwaukee, 
        Wisconsin, in an amount not to exceed $32,500,000.
            (5) Medical facility improvements and cemetery expansion of 
        Jefferson Barracks at the Department of Veterans Affairs Medical 
        Center, St. Louis, Missouri, in an amount not to exceed 
        $69,053,000.

SEC. 804. AUTHORIZATION OF ADVANCE PLANNING AND DESIGN FOR A MAJOR 
            MEDICAL FACILITY, CHARLESTON, SOUTH CAROLINA.

    (a) Agreement Authorized.--The Secretary of Veterans Affairs may 
enter into an agreement with the Medical University of South Carolina to 
design, and plan for the operation of, a co-located joint-use medical 
facility in Charleston, South Carolina, to replace the Ralph H. Johnson 
Department of Veterans Affairs Medical Center, Charleston, South 
Carolina.
    (b) Cost Limitation.--Advance planning and design for a co-located, 
joint-use medical facility in Charleston, South Carolina, under 
subsection (a) shall be carried out in an amount not to exceed 
$36,800,000.
    (c) Limitation on Naming.--A joint-use medical facility referred to 
in subsection (a) may not be named by the Secretary of Veterans Affairs 
or any other entity after any living Member or former Member of the 
Senate or House of Representatives.

SEC. 805. AUTHORIZATION OF FISCAL YEAR 2006 MAJOR MEDICAL FACILITY 
            LEASES.

    The Secretary of Veterans Affairs may carry out the following major 
medical facility leases in fiscal year 2006 at the locations specified, 
and in an amount for each lease not to exceed the amount shown for such 
location:
            (1) For an outpatient clinic, Baltimore, Maryland, 
        $10,908,000.

[[Page 120 STAT. 3445]]

            (2) For an outpatient clinic, Evansville, Indiana, 
        $8,989,000.
            (3) For an outpatient clinic, Smith County, Texas, 
        $5,093,000.

SEC. 806. AUTHORIZATION OF FISCAL YEAR 2007 MAJOR MEDICAL FACILITY 
            LEASES.

    The Secretary of Veterans Affairs may carry out the following major 
medical facility leases in fiscal year 2007 at the locations specified, 
and in an amount for each lease not to exceed the amount shown for such 
location:
            (1) For an outpatient and specialty care clinic, Austin, 
        Texas, $6,163,000.
            (2) For an outpatient clinic, Lowell, Massachusetts, 
        $2,520,000.
            (3) For an outpatient clinic, Grand Rapids, Michigan, 
        $4,409,000.
            (4) For up to four outpatient clinics, Las Vegas, Nevada, 
        $8,518,000.
            (5) For an outpatient clinic, Parma, Ohio, $5,032,000.

SEC. 807. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations for Fiscal Year 2006 Major 
Medical Facility Projects.--There is authorized to be appropriated to 
the Secretary of Veterans Affairs for fiscal year 2006 for the 
Construction, Major Projects, account, $708,000,000 for the projects 
authorized in section 801(a).
    (b) Authorization of Appropriations for Major Medical Facility 
Projects Under Capital Asset Realignment Initiative.--
            (1) Authorization of appropriations.--There is authorized to 
        be appropriated for the Secretary of Veterans Affairs for fiscal 
        year 2007 for the Construction, Major Projects, account, 
        $1,758,920,000 for the projects whose authorization is extended 
        by section 802.
            (2) Availability.--Amounts appropriated pursuant to the 
        authorization of appropriations in paragraph (1) shall remain 
        available until September 30, 2009.

    (c) Authorization of Appropriations for Fiscal Year 2007 Major 
Medical Facility Projects.--There is authorized to be appropriated to 
the Secretary of Veterans Affairs for fiscal year 2007 for the 
Construction, Major Projects, account, $221,766,000 for the projects 
authorized in section 803.
    (d) Authorization of Appropriations for Advance Planning and Design 
for Major Medical Facility, Charleston, South Carolina.--There is 
authorized to be appropriated to the Secretary of Veterans Affairs for 
the Construction, Major Projects, account, $36,800,000 for the advance 
planning and design authorized in section 804.
    (e) Authorization of Appropriations for Major Medical Facility 
Leases.--
            (1) Fiscal year 2006 leases.--There is authorized to be 
        appropriated for the Secretary of Veterans Affairs for fiscal 
        year 2006 for the Medical Care account, $24,990,000 for the 
        leases authorized in section 805.
            (2) Fiscal year 2007 leases.--There is authorized to be 
        appropriated for the Secretary of Veterans Affairs for fiscal

[[Page 120 STAT. 3446]]

        year 2007 for the Medical Care account, $26,642,000 for the 
        leases authorized in section 806.

    (f) Limitation.--The projects authorized in sections 801(a) and 802 
may only be carried out using--
            (1) funds appropriated for fiscal year 2006 or 2007 pursuant 
        to the authorization of appropriations in subsections (a), (b), 
        and (c) of this section;
            (2) funds available for Construction, Major Projects, for a 
        fiscal year before fiscal year 2006 that remain available for 
        obligation;
            (3) funds available for Construction, Major Projects, for a 
        fiscal year after fiscal year 2006 or 2007 that are available 
        for obligation; and
            (4) funds appropriated for Construction, Major Projects, for 
        fiscal year 2006 or 2007 for a category of activity not specific 
        to a project.

                  Subtitle B--Facilities Administration

SEC. 811. DIRECTOR OF CONSTRUCTION AND FACILITIES MANAGEMENT.

    (a) Establishment of Position.--Chapter 3 is amended by inserting 
after section 312 the following new section:

``Sec. 312A. Director of Construction and Facilities Management

    ``(a) In General.--(1) There is in the Department a Director of 
Construction and Facilities Management, who shall be appointed by the 
Secretary.
    ``(2) The position of Director of Construction and Facilities 
Management is a career reserved position, as such term is defined in 
section 3132(a)(8) of title 5.
    ``(3) The Director shall provide direct support to the Secretary in 
matters covered by the responsibilities of the Director under subsection 
(c).
    ``(4) The Director shall report to the Deputy Secretary in the 
discharge of the responsibilities of the Director under subsection (c).
    ``(b) Qualifications.--Each individual appointed as Director of 
Construction and Facilities Management shall be an individual who--
            ``(1) holds an undergraduate or master's degree in 
        architectural design or engineering; and
            ``(2) has substantive professional experience in the area of 
        construction project management.

    ``(c) Responsibilities.--(1) The Director of Construction and 
Facilities Management shall--
            ``(A) be responsible for overseeing and managing the 
        planning, design, construction, and operation of facilities and 
        infrastructure of the Department, including major and minor 
        construction projects; and
            ``(B) perform such other functions as the Secretary shall 
        prescribe.

    ``(2) In carrying out the oversight and management of construction 
and operation of facilities and infrastructure under this section, the 
Director shall be responsible for the following:

[[Page 120 STAT. 3447]]

            ``(A) Development and updating of short-range and long-range 
        strategic capital investment strategies and plans of the 
        Department.
            ``(B) Planning, design, and construction of facilities for 
        the Department, including determining architectural and 
        engineering requirements and ensuring compliance of the 
        Department with applicable laws relating to the construction 
        program of the Department.
            ``(C) Management of the short-term and long-term leasing of 
        real property by the Department.
            ``(D) Repair and maintenance of facilities of the 
        Department, including custodial services, building management 
        and administration, and maintenance of roads, grounds, and 
        infrastructure.
            ``(E) Management of procurement and acquisition processes 
        relating to the construction and operation of facilities of the 
        Department, including the award of contracts related to design, 
        construction, furnishing, and supplies and equipment.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
312 the following new item:

``312A. Director of Construction and Facilities Management.''.

SEC. 812. INCREASE IN THRESHOLD FOR MAJOR MEDICAL FACILITY PROJECTS.

    Section 8104(a)(3)(A) <<NOTE: 38 USC 8104.>> is amended by striking 
``$7,000,000'' and inserting ``$10,000,000''.

SEC. 813. LAND CONVEYANCE, CITY OF FORT THOMAS, KENTUCKY.

    (a) Conveyance Authorized.--The Secretary of Veterans Affairs may 
convey to the city of Fort Thomas, Kentucky (in this section referred to 
as the ``City''), all right, title, and interest of the United States in 
and to a parcel of real property, including the 15 structures located 
thereon, consisting of approximately 11.75 acres that is managed by the 
Department of Veterans Affairs and located in the northeastern portion 
of Tower Park in Fort Thomas, Kentucky. Any such conveyance shall be 
subject to valid existing rights, easements, and rights-of-way.
    (b) Consideration.--As consideration for the conveyance under 
subsection (a), the City shall pay to the United States an amount equal 
to the fair market value of the conveyed real property, as determined by 
the Secretary.
    (c) Treatment of Consideration.--The consideration received under 
subsection (b) shall be deposited, at the discretion of the Secretary, 
in the ``Medical Facilities'' account or the ``Construction, Minor 
Projects'' account (or a combination of those accounts) and shall be 
available to the Secretary, without limitation and until expended--
            (1) to cover costs incurred by the Secretary associated with 
        the environmental remediation of the real property before 
        conveyance under subsection (a); and
            (2) with any funds remaining after the Secretary has covered 
        costs as required under paragraph (1), for acquisition of a site 
        for use as a parking facility, or contract (by lease or 
        otherwise) for the operation of a parking facility, to be

[[Page 120 STAT. 3448]]

        used in connection with the Department of Veterans Affairs 
        Medical Facility, Cincinnati, Ohio.

    (d) Release From Liability.--Effective on the date of the conveyance 
under subsection (a), the United States shall not be liable for damages 
arising out of any act, omission, or occurrence relating to the conveyed 
real property, but shall continue to be liable for damages caused by 
acts of negligence committed by the United States or by any employee or 
agent of the United States before the date of conveyance, consistent 
with chapter 171 of title 28, United States Code.
    (e) Payment of Costs of Conveyance.--
            (1) Payment required.--The Secretary shall require the City 
        to cover costs to be incurred by the Secretary, or to reimburse 
        the Secretary for costs incurred by the Secretary, to carry out 
        the conveyance under subsection (a), including survey costs, 
        costs related to environmental documentation, and other 
        administrative costs related to the conveyance. If amounts are 
        collected from the City in advance of the Secretary incurring 
        the actual costs, and the amount collected exceeds the costs 
        actually incurred by the Secretary to carry out the conveyance, 
        the Secretary shall refund the excess amount to the City.
            (2) Treatment of amounts received.--Amounts received as 
        reimbursement under paragraph (1) shall be credited to the fund 
        or account that was used to cover the costs incurred by the 
        Secretary in carrying out the conveyance. Amounts so credited 
        shall be merged with amounts in such fund or account and shall 
        be available for the same purposes, and subject to the same 
        conditions and limitations, as amounts in such fund or account.

    (f) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (g) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers necessary to protect the 
interests of the United States.

          Subtitle C--Reports on Medical Facility Improvements

SEC. 821. REPORT ON OPTION FOR MEDICAL FACILITY IMPROVEMENTS IN SAN 
            JUAN, PUERTO RICO.

    Not later than 180 days 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 identifying and outlining the 
various options available to the Department of Veterans Affairs for 
replacing the current Department of Veterans Affairs Medical Center, San 
Juan, Puerto Rico. The report shall not affect current contracts at the 
current site, and the report shall include the following:
            (1) The feasibility of entering into a partnership with a 
        Federal, Commonwealth, or local governmental agency, or a 
        suitable non-profit organization, for the construction and 
        operation of a new facility.

[[Page 120 STAT. 3449]]

            (2) The medical, legal, and financial implications of each 
        of the options identified, including recommendations regarding 
        any statutory changes necessary for the Department to carry out 
        any of the options identified.
            (3) A detailed cost-benefit analysis of each of the options 
        identified.
            (4) Estimates regarding the length of time and associated 
        costs needed to complete such a facility under each of the 
        options identified.

SEC. 822. BUSINESS PLANS FOR ENHANCED ACCESS TO OUTPATIENT CARE IN 
            CERTAIN RURAL AREAS.

    (a) Requirement.--Not later than 180 days 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 business plan for 
enhanced access to outpatient care (as described in subsection (b)) for 
primary care, mental health care, and specialty care in each of the 
following areas:
            (1) The Lewiston-Auburn area of Maine.
            (2) The area of Houlton, Maine.
            (3) The area of Dover-Foxcroft, Maine.
            (4) Whiteside County, Illinois.

    (b) Means of Enhanced Access.--The means of enhanced access to 
outpatient care to be covered by the business plans under subsection (a) 
are, with respect to each area specified in that subsection, one or more 
of the following:
            (1) New sites of care.
            (2) Expansions at existing sites of care.
            (3) Use of existing authority and policies to contract for 
        care where necessary.
            (4) Increased use of telemedicine.

SEC. 823. REPORT ON OPTION FOR CONSTRUCTION OF DEPARTMENT OF VETERANS 
            AFFAIRS MEDICAL CENTER IN OKALOOSA COUNTY, FLORIDA.

    (a) Feasibility Study.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Veterans Affairs shall 
submit to the Committee on Veterans' Affairs and the Committee on Armed 
Services of the Senate of the Senate and the Committee on Veterans' 
Affairs and the Committee on Armed Services of the House of 
Representatives of the House of Representatives a report identifying and 
outlining the various options available to the Department of Veterans 
Affairs for the placement of a Department of Veterans Affairs Medical 
Center in Okaloosa County, Florida. The report shall be prepared in 
conjunction with the Secretary of Defense and the Secretary of the Air 
Force.
    (b) Matters To Be Included.--The report under subsection (a) shall 
include the following:
            (1) The feasibility of entering into a partnership with 
        Eglin Air Force Base for the construction and operation of a 
        new, joint Department of Veterans Affairs-Department of Defense 
        facility.
            (2) The medical, legal, and financial implications of each 
        of the options identified, including recommendations regarding 
        any statutory changes necessary for the Department of Veterans 
        Affairs to carry out any of the options identified.

[[Page 120 STAT. 3450]]

            (3) A detailed cost-benefit analysis of each of the options 
        identified.
            (4) Estimates regarding the length of time and associated 
        costs needed to complete such a facility under each of the 
        options identified.

 TITLE IX-- <<NOTE: Department of Veterans Affairs Information Security 
Enhancement Act of 2006.>> INFORMATION SECURITY MATTERS

SEC. 901. <<NOTE: 38 USC 101 note.>> SHORT TITLE.

    This title may be cited as the ``Department of Veterans Affairs 
Information Security Enhancement Act of 2006''.

SEC. 902. DEPARTMENT OF VETERANS AFFAIRS INFORMATION SECURITY PROGRAMS 
            AND REQUIREMENTS.

    (a) Information Security Programs and Requirements.--Chapter 57 is 
amended by adding at the end the following new subchapter:

                 ``SUBCHAPTER III--INFORMATION SECURITY

``Sec. 5721. Purpose

    ``The purpose of the Information Security Program is to establish a 
program to provide security for Department information and information 
systems commensurate to the risk of harm, and to communicate the 
responsibilities of the Secretary, Under Secretaries, Assistant 
Secretaries, other key officials, Assistant Secretary for Information 
and Technology, Associate Deputy Assistant Secretary for Cyber and 
Information Security, and Inspector General of the Department of 
Veterans Affairs as outlined in the provisions of subchapter III of 
chapter 35 of title 44 (also known as the `Federal Information Security 
Management Act of 2002', which was enacted as part of the E-Government 
Act of 2002 (Public Law 107-347)).

``Sec. 5722. Policy

    ``(a) In General.--The security of Department information and 
information systems is vital to the success of the mission of the 
Department. To that end, the Secretary shall establish and maintain a 
comprehensive Department-wide information security program to provide 
for the development and maintenance of cost-effective security controls 
needed to protect Department information, in any media or format, and 
Department information systems.
    ``(b) Elements.--The Secretary shall ensure that the Department 
information security program includes the following elements:
            ``(1) Periodic assessments of the risk and magnitude of harm 
        that could result from the unauthorized access, use, disclosure, 
        disruption, modification, or destruction of information and 
        information systems that support the operations and assets of 
        the Department.
            ``(2) Policies and procedures that--
                    ``(A) are based on risk assessments;
                    ``(B) cost-effectively reduce security risks to an 
                acceptable level; and

[[Page 120 STAT. 3451]]

                    ``(C) ensure that information security is addressed 
                throughout the life cycle of each Department information 
                system.
            ``(3) Selection and effective implementation of minimum, 
        mandatory technical, operational, and management security 
        controls, or other compensating countermeasures, to protect the 
        confidentiality, integrity, and availability of each Department 
        system and its information.
            ``(4) Subordinate plans for providing adequate security for 
        networks, facilities, systems, or groups of information systems, 
        as appropriate.
            ``(5) Annual security awareness training for all Department 
        employees, contractors, and all other users of VA sensitive data 
        and Department information systems that identifies the 
        information security risks associated with the activities of 
        such employees, contractors, and users and the responsibilities 
        of such employees, contractors, and users to comply with 
        Department policies and procedures designed to reduce such 
        risks.
            ``(6) Periodic testing and evaluation of the effectiveness 
        of security controls based on risk, including triennial 
        certification testing of all management, operational, and 
        technical controls, and annual testing of a subset of those 
        controls for each Department system.
            ``(7) A process for planning, developing, implementing, 
        evaluating, and documenting remedial actions to address 
        deficiencies in information security policies, procedures, and 
        practices.
            ``(8) Procedures for detecting, immediately reporting, and 
        responding to security incidents, including mitigating risks 
        before substantial damage is done as well as notifying and 
        consulting with the US-Computer Emergency Readiness Team of the 
        Department of Homeland Security, law enforcement agencies, the 
        Inspector General of the Department, and other offices as 
        appropriate.
            ``(9) Plans and procedures to ensure continuity of 
        operations for Department systems.

    ``(c) Compliance With Certain Requirements.--The Secretary shall 
comply with the provisions of subchapter III of chapter 35 of title 44 
and other related information security requirements promulgated by the 
National Institute of Standards and Technology and the Office of 
Management and Budget that define Department information system 
mandates.

``Sec. 5723. Responsibilities

    ``(a) Secretary of Veterans Affairs.--In accordance with the 
provisions of subchapter III of chapter 35 of title 44, the Secretary is 
responsible for the following:
            ``(1) Ensuring that the Department adopts a Department-wide 
        information security program and otherwise complies with the 
        provisions of subchapter III of chapter 35 of title 44 and other 
        related information security requirements.
            ``(2) Ensuring that information security protections are 
        commensurate with the risk and magnitude of the potential harm 
        to Department information and information systems resulting from 
        unauthorized access, use, disclosure, disruption, modification, 
        or destruction.

[[Page 120 STAT. 3452]]

            ``(3) Ensuring that information security management 
        processes are integrated with Department strategic and 
        operational planning processes.
            ``(4) Ensuring that the Under Secretaries, Assistant 
        Secretaries, and other key officials of the Department provide 
        adequate security for the information and information systems 
        under their control.
            ``(5) Ensuring enforcement and compliance with the 
        requirements imposed on the Department under the provisions of 
        subchapter III of chapter 35 of title 44.
            ``(6) Ensuring that the Department has trained program and 
        staff office personnel sufficient to assist in complying with 
        all the provisions of subchapter III of chapter 35 of title 44 
        and other related information security requirements.
            ``(7) Ensuring that the Assistant Secretary for Information 
        and Technology, in coordination with the Under Secretaries, 
        Assistant Secretaries, and other key officials of the Department 
        report to Congress, the Office of Management and Budget, and 
        other entities as required by law and Executive Branch direction 
        on the effectiveness of the Department information security 
        program, including remedial actions.
            ``(8) <<NOTE: Notification.>> Notifying officials other than 
        officials of the Department of data breaches when required under 
        this subchapter.
            ``(9) Ensuring that the Assistant Secretary for Information 
        and Technology has the authority and control necessary to 
        develop, approve, implement, integrate, and oversee the 
        policies, procedures, processes, activities, and systems of the 
        Department relating to subchapter III of chapter 35 of title 44, 
        including the management of all related mission applications, 
        information resources, personnel, and infrastructure.
            ``(10) <<NOTE: Deadline. Reports.>> Submitting to the 
        Committees on Veterans' Affairs of the Senate and House of 
        Representatives, the Committee on Government Reform of the House 
        of Representatives, and the Committee on Homeland Security and 
        Governmental Affairs of the Senate, not later than March 1 each 
        year, a report on the compliance of the Department with 
        subchapter III of chapter 35 of title 44, with the information 
        in such report displayed in the aggregate and separately for 
        each Administration, office, and facility of the Department.
            ``(11) Taking appropriate action to ensure that the budget 
        for any fiscal year, as submitted by the President to Congress 
        under section 1105 of title 31, sets forth separately the 
        amounts required in the budget for such fiscal year for 
        compliance by the Department with Federal law and regulations 
        governing information security, including this subchapter and 
        subchapter III of chapter 35 of title 44.
            ``(12) <<NOTE: Notification.>> Providing notice to the 
        Director of the Office of Management and Budget, the Inspector 
        General of the Department, and such other Federal agencies as 
        the Secretary considers appropriate of a presumptive data breach 
        of which notice is provided the Secretary under subsection 
        (b)(16) if, in the opinion of the Assistant Secretary for 
        Information and Technology, the breach involves the information 
        of twenty or more individuals.

    ``(b) Assistant Secretary for Information and Technology.--The 
Assistant Secretary for Information and Technology,

[[Page 120 STAT. 3453]]

as the Chief Information Officer of the Department, is responsible for 
the following:
            ``(1) Establishing, maintaining, and monitoring Department-
        wide information security policies, procedures, control 
        techniques, training, and inspection requirements as elements of 
        the Department information security program.
            ``(2) Issuing policies and handbooks to provide direction 
        for implementing the elements of the information security 
        program to all Department organizations.
            ``(3) Approving all policies and procedures that are related 
        to information security for those areas of responsibility that 
        are currently under the management and the oversight of other 
        Department organizations.
            ``(4) Ordering and enforcing Department-wide compliance with 
        and execution of any information security policy.
            ``(5) Establishing minimum mandatory technical, operational, 
        and management information security control requirements for 
        each Department system, consistent with risk, the processes 
        identified in standards of the National Institute of Standards 
        and Technology, and the responsibilities of the Assistant 
        Secretary to operate and maintain all Department systems 
        currently creating, processing, collecting, or disseminating 
        data on behalf of Department information owners.
            ``(6) Establishing standards for access to Department 
        information systems by organizations and individual employees, 
        and to deny access as appropriate.
            ``(7) Directing that any incidents of failure to comply with 
        established information security policies be immediately 
        reported to the Assistant Secretary.
            ``(8) Reporting any compliance failure or policy violation 
        directly to the appropriate Under Secretary, Assistant 
        Secretary, or other key official of the Department for 
        appropriate administrative or disciplinary action.
            ``(9) Reporting any compliance failure or policy violation 
        directly to the appropriate Under Secretary, Assistant 
        Secretary, or other key official of the Department along with 
        taking action to correct the failure or violation.
            ``(10) Requiring any key official of the Department who is 
        so notified to report to the Assistant Secretary with respect to 
        an action to be taken in response to any compliance failure or 
        policy violation reported by the Assistant Secretary.
            ``(11) Ensuring that the Chief Information Officers and 
        Information Security Officers of the Department comply with all 
        cyber security directives and mandates, and ensuring that these 
        staff members have all necessary authority and means to direct 
        full compliance with such directives and mandates relating to 
        the acquisition, operation, maintenance, or use of information 
        technology resources from all facility staff.
            ``(12) Establishing the VA National Rules of Behavior for 
        appropriate use and protection of the information which is used 
        to support Department missions and functions.
            ``(13) Establishing and providing supervision over an 
        effective incident reporting system.
            ``(14) <<NOTE: Deadline. Reports.>> Submitting to the 
        Secretary, at least once every quarter, a report on any 
        deficiency in the compliance with subchapter III of chapter 35 
        of title 44 of the Department or any Administration, office, or 
        facility of the Department.

[[Page 120 STAT. 3454]]

            ``(15) Reporting immediately to the Secretary on any 
        significant deficiency in the compliance described by paragraph 
        (14).
            ``(16) <<NOTE: Notification.>> Providing immediate notice to 
        the Secretary of any presumptive data breach.

    ``(c) Associate Deputy Assistant Secretary for Cyber and Information 
Security.--In accordance with the provisions of subchapter III of 
chapter 35 of title 44, the Associate Deputy Assistant Secretary for 
Cyber and Information Security, as the Senior Information Security 
Officer of the Department, is responsible for carrying out the 
responsibilities of the Assistant Secretary for Information and 
Technology under the provisions of subchapter III of chapter 35 of title 
44, as set forth in subsection (b).
    ``(d) Department Information Owners.--In accordance with the 
criteria of the Centralized IT Management System, Department information 
owners are responsible for the following:
            ``(1) Providing assistance to the Assistant Secretary for 
        Information and Technology regarding the security requirements 
        and appropriate level of security controls for the information 
        system or systems where sensitive personal information is 
        currently created, collected, processed, disseminated, or 
        subject to disposal.
            ``(2) Determining who has access to the system or systems 
        containing sensitive personal information, including types of 
        privileges and access rights.
            ``(3) Ensuring the VA National Rules of Behavior is signed 
        on an annual basis and enforced by all system users to ensure 
        appropriate use and protection of the information which is used 
        to support Department missions and functions.
            ``(4) Assisting the Assistant Secretary for Information and 
        Technology in the identification and assessment of the common 
        security controls for systems where their information resides.
            ``(5) Providing assistance to Administration and staff 
        office personnel involved in the development of new systems 
        regarding the appropriate level of security controls for their 
        information.

    ``(e) Other Key Officials.--In accordance with the provisions of 
subchapter III of chapter 35 of title 44, the Under Secretaries, 
Assistant Secretaries, and other key officials of the Department are 
responsible for the following:
            ``(1) Implementing the policies, procedures, practices, and 
        other countermeasures identified in the Department information 
        security program that comprise activities that are under their 
        day-to-day operational control or supervision.
            ``(2) Periodically testing and evaluating information 
        security controls that comprise activities that are under their 
        day-to-day operational control or supervision to ensure 
        effective implementation.
            ``(3) Providing a plan of action and milestones to the 
        Assistant Secretary for Information and Technology on at least a 
        quarterly basis detailing the status of actions being taken to 
        correct any security compliance failure or policy violation.
            ``(4) Complying with the provisions of subchapter III of 
        chapter 35 of title 44 and other related information security 
        laws and requirements in accordance with orders of the Assistant 
        Secretary for Information and Technology to execute the 
        appropriate security controls commensurate to responding to a 
        security bulletin of the Security Operations Center of the

[[Page 120 STAT. 3455]]

        Department, with such orders to supersede and take priority over 
        all operational tasks and assignments and be complied with 
        immediately.
            ``(5) Ensuring that--
                    ``(A) all employees within their organizations take 
                immediate action to comply with orders from the 
                Assistant Secretary for Information and Technology to--
                          ``(i) mitigate the impact of any potential 
                      security vulnerability;
                          ``(ii) respond to a security incident; or
                          ``(iii) implement the provisions of a bulletin 
                      or alert of the Security Operations Center; and
                    ``(B) organizational managers have all necessary 
                authority and means to direct full compliance with such 
                orders from the Assistant Secretary.
            ``(6) Ensuring the VA National Rules of Behavior is signed 
        and enforced by all system users to ensure appropriate use and 
        protection of the information which is used to support 
        Department missions and functions on an annual basis.

    ``(f) Users of Department Information and Information Systems.--
Users of Department information and information systems are responsible 
for the following:
            ``(1) Complying with all Department information security 
        program policies, procedures, and practices.
            ``(2) Attending security awareness training on at least an 
        annual basis.
            ``(3) Reporting all security incidents immediately to the 
        Information Security Officer of the system or facility and to 
        their immediate supervisor.
            ``(4) Complying with orders from the Assistant Secretary for 
        Information and Technology directing specific activities when a 
        security incident occurs.
            ``(5) Signing an acknowledgment that they have read, 
        understand, and agree to abide by the VA National Rules of 
        Behavior on an annual basis.

    ``(g) Inspector General of Department of Veterans Affairs.--In 
accordance with the provisions of subchapter III of chapter 35 of title 
44, the Inspector General of the Department is responsible for the 
following:
            ``(1) <<NOTE: Audit.>> Conducting an annual audit of the 
        Department information security program.
            ``(2) <<NOTE: Reports.>> Submitting an independent annual 
        report to the Office of Management and Budget on the status of 
        Department information security program, based on the results of 
        the annual audit.
            ``(3) <<NOTE: Investigations.>> Conducting investigations of 
        complaints and referrals of violations as considered appropriate 
        by the Inspector General.

``Sec. 5724. Provision of credit protection and other services

    ``(a) Independent Risk Analysis.--(1) In the event of a data breach 
with respect to sensitive personal information that is processed or 
maintained by the Secretary, the Secretary shall ensure that, as soon as 
possible after the data breach, a non-Department entity or the Office of 
Inspector General of the Department conducts an independent risk 
analysis of the data breach to determine the level of risk associated 
with the data breach for the potential

[[Page 120 STAT. 3456]]

misuse of any sensitive personal information involved in the data 
breach.
    ``(2) If the Secretary determines, based on the findings of a risk 
analysis conducted under paragraph (1), that a reasonable risk exists 
for the potential misuse of sensitive personal information involved in a 
data breach, the Secretary shall provide credit protection services in 
accordance with the regulations prescribed by the Secretary under this 
section.
    ``(b) <<NOTE: Deadline.>> Regulations.--Not later than 180 days 
after the date of the enactment of the Veterans Benefits, Health Care, 
and Information Technology Act of 2006, the Secretary shall prescribe 
interim regulations for the provision of the following in accordance 
with subsection (a)(2):
            ``(1) Notification.
            ``(2) Data mining.
            ``(3) Fraud alerts.
            ``(4) Data breach analysis.
            ``(5) Credit monitoring.
            ``(6) Identity theft insurance.
            ``(7) Credit protection services.

    ``(c) Report.--(1) For each data breach with respect to sensitive 
personal information processed or maintained by the Secretary, the 
Secretary shall promptly submit to the Committees on Veterans' Affairs 
of the Senate and House of Representatives a report containing the 
findings of any independent risk analysis conducted under subsection 
(a)(1), any determination of the Secretary under subsection (a)(2), and 
a description of any services provided pursuant to subsection (b).
    ``(2) In the event of a data breach with respect to sensitive 
personal information processed or maintained by the Secretary that is 
the sensitive personal information of a member of the Army, Navy, Air 
Force, or Marine Corps or a civilian officer or employee of the 
Department of Defense, the Secretary shall submit the report required 
under paragraph (1) to the Committee on Armed Services of the Senate and 
the Committee on Armed Services of the House of Representatives in 
addition to the Committees on Veterans' Affairs of the Senate and House 
of Representatives.

``Sec. 5725. Contracts for data processing or maintenance

    ``(a) Contract Requirements.--If the Secretary enters into a 
contract for the performance of any Department function that requires 
access to sensitive personal information, the Secretary shall require as 
a condition of the contract that--
            ``(1) the contractor shall not, directly or through an 
        affiliate of the contractor, disclose such information to any 
        other person unless the disclosure is lawful and is expressly 
        permitted under the contract;
            ``(2) the contractor, or any subcontractor for a subcontract 
        of the contract, shall promptly notify the Secretary of any data 
        breach that occurs with respect to such information.

    ``(b) Liquidated Damages.--Each contract subject to the requirements 
of subsection (a) shall provide for liquidated damages to be paid by the 
contractor to the Secretary in the event of a data breach with respect 
to any sensitive personal information processed or maintained by the 
contractor or any subcontractor under that contract.

[[Page 120 STAT. 3457]]

    ``(c) Provision of Credit Protection Services.--Any amount collected 
by the Secretary under subsection (b) shall be deposited in or credited 
to the Department account from which the contractor was paid and shall 
remain available for obligation without fiscal year limitation 
exclusively for the purpose of providing credit protection services 
pursuant to section 5724(b) of this title.

``Sec. 5726. Reports and notice to Congress on data breaches

    ``(a) Quarterly Reports.--(1) Not later than 30 days after the last 
day of a fiscal quarter, the Secretary shall submit to the Committees on 
Veterans' Affairs of the Senate and House of Representatives a report on 
any data breach with respect to sensitive personal information processed 
or maintained by the Department that occurred during that quarter.
    ``(2) Each report submitted under paragraph (1) shall identify, for 
each data breach covered by the report--
            ``(A) the Administration and facility of the Department 
        responsible for processing or maintaining the sensitive personal 
        information involved in the data breach; and
            ``(B) the status of any remedial or corrective action with 
        respect to the data breach.

    ``(b) Notification of Significant Data Breaches.--(1) In the event 
of a data breach with respect to sensitive personal information 
processed or maintained by the Secretary that the Secretary determines 
is significant, the Secretary shall provide notice of such breach to the 
Committees on Veterans' Affairs of the Senate and House of 
Representatives.
    ``(2) In the event of a data breach with respect to sensitive 
personal information processed or maintained by the Secretary that is 
the sensitive personal information of a member of the Army, Navy, Air 
Force, or Marine Corps or a civilian officer or employee of the 
Department of Defense that the Secretary determines is significant under 
paragraph (1), the Secretary shall provide the notice required under 
paragraph (1) to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives in addition 
to the Committees on Veterans' Affairs of the Senate and House of 
Representatives.
    ``(3) Notice under paragraphs (1) and (2) shall be provided promptly 
following the discovery of such a data breach and the implementation of 
any measures necessary to determine the scope of the breach, prevent any 
further breach or unauthorized disclosures, and reasonably restore the 
integrity of the data system.

``Sec. 5727. Definitions

    ``In this subchapter:
            ``(1) Availability.--The term `availability' means ensuring 
        timely and reliable access to and use of information.
            ``(2) Confidentiality.--The term `confidentiality' means 
        preserving authorized restrictions on access and disclosure, 
        including means for protecting personal privacy and proprietary 
        information.
            ``(3) Control techniques.--The term `control techniques' 
        means methods for guiding and controlling the operations of 
        information systems to ensure adherence to the provisions of 
        subchapter III of chapter 35 of title 44 and other related 
        information security requirements.

[[Page 120 STAT. 3458]]

            ``(4) Data breach.--The term `data breach' means the loss, 
        theft, or other unauthorized access, other than those incidental 
        to the scope of employment, to data containing sensitive 
        personal information, in electronic or printed form, that 
        results in the potential compromise of the confidentiality or 
        integrity of the data.
            ``(5) Data breach analysis.--The term `data breach analysis' 
        means the process used to determine if a data breach has 
        resulted in the misuse of sensitive personal information.
            ``(6) Fraud resolution systems.--The term `fraud resolution 
        services' means services to assist an individual in the process 
        of recovering and rehabilitating the credit of the individual 
        after the individual experiences identity theft.
            ``(7) Identity theft.--The term `identity theft' has the 
        meaning given such term under section 603 of the Fair Credit 
        Reporting Act (15 U.S.C. 1681a).
            ``(8) Identity theft insurance.--The term `identity theft 
        insurance' means any insurance policy that pays benefits for 
        costs, including travel costs, notary fees, and postage costs, 
        lost wages, and legal fees and expenses associated with efforts 
        to correct and ameliorate the effects and results of identity 
        theft of the insured individual.
            ``(9) Information owner.--The term `information owner' means 
        an agency official with statutory or operational authority for 
        specified information and responsibility for establishing the 
        criteria for its creation, collection, processing, 
        dissemination, or disposal, which responsibilities may extend to 
        interconnected systems or groups of interconnected systems.
            ``(10) Information resources.--The term `information 
        resources' means information in any medium or form and its 
        related resources, such as personnel, equipment, funds, and 
        information technology.
            ``(11) Information security.--The term `information 
        security' means protecting information and information systems 
        from unauthorized access, use, disclosure, disruption, 
        modification, or destruction in order to provide integrity, 
        confidentiality, and availability.
            ``(12) Information security requirements.--The term 
        `information security requirements' means information security 
        requirements promulgated in accordance with law, or directed by 
        the Secretary of Commerce, the National Institute of Standards 
        and Technology, and the Office of Management and Budget, and, as 
        to national security systems, the President.
            ``(13) Information system.--The term `information system' 
        means a discrete set of information resources organized for the 
        collection, processing, maintenance, use, sharing, 
        dissemination, or disposition of information, whether automated 
        or manual.
            ``(14) Integrity.--The term `integrity' means guarding 
        against improper information modification or destruction, and 
        includes ensuring information non-repudiation and authenticity.
            ``(15) National security system.--The term `national 
        security system' means an information system that is protected 
        at all times by policies and procedures established for the 
        processing, maintenance, use, sharing, dissemination or 
        disposition of information that has been specifically authorized 
        under

[[Page 120 STAT. 3459]]

        criteria established by statute or Executive Order to be kept 
        classified in the interest of national defense or foreign 
        policy.
            ``(16) Plan of action and milestones.--The term `plan of 
        action and milestones', means a plan used as a basis for the 
        quarterly reporting requirements of the Office of Management and 
        Budget that includes the following information:
                    ``(A) A description of the security weakness.
                    ``(B) The identity of the office or organization 
                responsible for resolving the weakness.
                    ``(C) An estimate of resources required to resolve 
                the weakness by fiscal year.
                    ``(D) The scheduled completion date.
                    ``(E) Key milestones with estimated completion 
                dates.
                    ``(F) Any changes to the original key milestone 
                date.
                    ``(G) The source that identified the weakness.
                    ``(H) The status of efforts to correct the weakness.
            ``(17) Principal credit reporting agency.--The term 
        `principal credit reporting agency' means a consumer reporting 
        agency as described in section 603(p) of the Fair Credit 
        Reporting Act (15 U.S.C. 1681a(p)).
            ``(18) Security incident.--The term `security incident' 
        means an event that has, or could have, resulted in loss or 
        damage to Department assets, or sensitive information, or an 
        action that breaches Department security procedures.
            ``(19) Sensitive personal information.--The term `sensitive 
        personal information', with respect to an individual, means any 
        information about the individual maintained by an agency, 
        including the following:
                    ``(A) Education, financial transactions, medical 
                history, and criminal or employment history.
                    ``(B) Information that can be used to distinguish or 
                trace the individual's identity, including name, social 
                security number, date and place of birth, mother's 
                maiden name, or biometric records.
            ``(20) Subordinate plan.--The term `subordinate plan', also 
        referred to as a `system security plan', means a subordinate 
        plan defines the security controls that are either planned or 
        implemented for networks, facilities, systems, or groups of 
        systems, as appropriate, within a specific accreditation 
        boundary.
            ``(21) Training.--The term `training' means a learning 
        experience in which an individual is taught to execute a 
        specific information security procedure or understand the 
        information security common body of knowledge.
            ``(22) Va national rules of behavior.--The term `VA National 
        Rules of Behavior' means a set of Department rules that 
        describes the responsibilities and expected behavior of 
        personnel with regard to information system usage.
            ``(23) Va sensitive data.--The term `VA sensitive data' 
        means all Department data, on any storage media or in any form 
        or format, which requires protection due to the risk of harm 
        that could result from inadvertent or deliberate disclosure, 
        alteration, or destruction of the information and includes 
        information whose improper use or disclosure could adversely 
        affect the ability of an agency to accomplish its mission, 
        proprietary information, and records about individuals requiring 
        protection under applicable confidentiality provisions.

[[Page 120 STAT. 3460]]

``Sec. 5728. Authorization of appropriations

    ``There are authorized to be appropriated to carry out this 
subchapter such sums as may be necessary for each fiscal year.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 57 is amended by adding at the end the following:

                 ``subchapter iii--information security

``5721. Purpose.
``5722. Policy.
``5723. Responsibilities.
``5724. Provision of credit protection and other services.
``5725. Contracts for data processing or maintenance.
``5726. Reports and notice to Congress on data breaches.
``5727. Definitions.
``5728. Authorization of appropriations.''.

    (c) <<NOTE: 38 USC 5721 note.>> Deadline for Regulations.--Not later 
than one year after the date of the enactment of this Act, the Secretary 
of Veterans Affairs shall prescribe regulations to carry out subchapter 
III of chapter 57 of title 38, United States Code, as added by 
subsection (a).

SEC. 903. INFORMATION SECURITY EDUCATION ASSISTANCE PROGRAMS.

    (a) Programs Authorized.--
            (1) In general.--Title 38 is amended by inserting after 
        chapter 78 the following new chapter:

     ``CHAPTER 79--INFORMATION SECURITY EDUCATION ASSISTANCE PROGRAM

``Sec.
``7901. Programs; purpose.
``7902. Scholarship program.
``7903. Education debt reduction program.
``7904. Preferences in awarding financial assistance.
``7905. Requirement of honorable discharge for veterans receiving 
           assistance.
``7906. Regulations.
``7907. Termination.

``Sec. 7901. Programs; purpose

    ``(a) In General.--To encourage the recruitment and retention of 
Department personnel who have the information security skills necessary 
to meet Department requirements, the Secretary may carry out programs in 
accordance with this chapter to provide financial support for education 
in computer science and electrical and computer engineering at 
accredited institutions of higher education.
    ``(b) Types of Programs.--The programs authorized under this chapter 
are as follows:
            ``(1) Scholarships for pursuit of doctoral degrees in 
        computer science and electrical and computer engineering at 
        accredited institutions of higher education.
            ``(2) Education debt reduction for Department personnel who 
        hold doctoral degrees in computer science and electrical and 
        computer engineering at accredited institutions of higher 
        education.

``Sec. 7902. Scholarship program

    ``(a) Authority.--(1) Subject to the availability of appropriations, 
the Secretary may establish a scholarship program under

[[Page 120 STAT. 3461]]

which the Secretary shall, subject to subsection (d), provide financial 
assistance in accordance with this section to a qualified person--
            ``(A) who is pursuing a doctoral degree in computer science 
        or electrical or computer engineering at an accredited 
        institution of higher education; and
            ``(B) who enters into an agreement with the Secretary as 
        described in subsection (b).

    ``(2)(A) Except as provided in subparagraph (B), the Secretary may 
provide financial assistance under this section to an individual for up 
to five years.
    ``(B) The Secretary may waive the limitation under subparagraph (A) 
if the Secretary determines that such a waiver is appropriate.
    ``(b) Service Agreement for Scholarship Recipients.--(1) To receive 
financial assistance under this section an individual shall enter into 
an agreement to accept and continue employment in the Department for the 
period of obligated service determined under paragraph (2).
    ``(2) For the purposes of this subsection, the period of obligated 
service for a recipient of financial assistance under this section shall 
be the period determined by the Secretary as being appropriate to obtain 
adequate service in exchange for the financial assistance and otherwise 
to achieve the goals set forth in section 7901(a) of this title. In no 
event may the period of service required of a recipient be less than the 
period equal to the total period of pursuit of a degree for which the 
Secretary agrees to provide the recipient with financial assistance 
under this section. The period of obligated service is in addition to 
any other period for which the recipient is obligated to serve on active 
duty or in the civil service, as the case may be.
    ``(3) An agreement entered into under this section by a person 
pursuing a doctoral degree shall include terms that provide the 
following:
            ``(A) That the period of obligated service begins on a date 
        after the award of the degree that is determined under the 
        regulations prescribed under section 7906 of this title.
            ``(B) That the individual will maintain satisfactory 
        academic progress, as determined in accordance with those 
        regulations, and that failure to maintain such progress 
        constitutes grounds for termination of the financial assistance 
        for the individual under this section.
            ``(C) Any other terms and conditions that the Secretary 
        determines appropriate for carrying out this section.

    ``(c) Amount of Assistance.--(1) The amount of the financial 
assistance provided for an individual under this section shall be the 
amount determined by the Secretary as being necessary to pay--
            ``(A) the tuition and fees of the individual; and
            ``(B) $1,500 to the individual each month (including a month 
        between academic semesters or terms leading to the degree for 
        which such assistance is provided or during which the individual 
        is not enrolled in a course of education but is pursuing 
        independent research leading to such degree) for books, 
        laboratory expenses, and expenses of room and board.

    ``(2) In no case may the amount of assistance provided for an 
individual under this section for an academic year exceed $50,000.

[[Page 120 STAT. 3462]]

    ``(3) In no case may the total amount of assistance provided for an 
individual under this section exceed $200,000.
    ``(4) Notwithstanding any other provision of law, financial 
assistance paid an individual under this section shall not be considered 
as income or resources in determining eligibility for, or the amount of 
benefits under, any Federal or federally assisted program.
    ``(d) Repayment for Period of Unserved Obligated Service.--(1) An 
individual who receives financial assistance under this section shall 
repay to the Secretary an amount equal to the unearned portion of the 
financial assistance if the individual fails to satisfy the requirements 
of the service agreement entered into under subsection (b), except in 
circumstances authorized by the Secretary.
    ``(2) The Secretary may establish, by regulations, procedures for 
determining the amount of the repayment required under this subsection 
and the circumstances under which an exception to the required repayment 
may be granted.
    ``(3) An obligation to repay the Secretary under this subsection is, 
for all purposes, a debt owed the United States. A discharge in 
bankruptcy under title 11 does not discharge a person from such debt if 
the discharge order is entered less than five years after the date of 
the termination of the agreement or contract on which the debt is based.
    ``(e) Waiver or Suspension of Compliance.-- 
<<NOTE: Regulations.>> The Secretary shall prescribe regulations 
providing for the waiver or suspension of any obligation of an 
individual for service or payment under this section (or an agreement 
under this section) whenever noncompliance by the individual is due to 
circumstances beyond the control of the individual or whenever the 
Secretary determines that the waiver or suspension of compliance is in 
the best interest of the United States.

    ``(f) Internships.--(1) The Secretary may offer a compensated 
internship to an individual for whom financial assistance is provided 
under this section during a period between academic semesters or terms 
leading to the degree for which such assistance is provided. 
Compensation provided for such an internship shall be in addition to the 
financial assistance provided under this section.
    ``(2) An internship under this subsection shall not be counted 
toward satisfying a period of obligated service under this section.
    ``(g) Ineligibility of Individuals Receiving Montgomery GI Bill 
Education Assistance Payments.--An individual who receives a payment of 
educational assistance under chapter 30, 31, 32, 34, or 35 of this title 
or chapter 1606 or 1607 of title 10 for a month in which the individual 
is enrolled in a course of education leading to a doctoral degree in 
information security is not eligible to receive financial assistance 
under this section for that month.

``Sec. 7903. Education debt reduction program

    ``(a) Authority.--Subject to the availability of appropriations, the 
Secretary may establish an education debt reduction program under which 
the Secretary shall make education debt reduction payments under this 
section to qualified individuals eligible under subsection (b) for the 
purpose of reimbursing such individuals for payments by such individuals 
of principal and interest on loans described in paragraph (2) of that 
subsection.

[[Page 120 STAT. 3463]]

    ``(b) Eligibility.--An individual is eligible to participate in the 
program under this section if the individual--
            ``(1) has completed a doctoral degree in computer science or 
        electrical or computer engineering at an accredited institution 
        of higher education during the five-year period preceding the 
        date on which the individual is hired;
            ``(2) is an employee of the Department who serves in a 
        position related to information security (as determined by the 
        Secretary); and
            ``(3) owes any amount of principal or interest under a loan, 
        the proceeds of which were used by or on behalf of that 
        individual to pay costs relating to a doctoral degree in 
        computer science or electrical or computer engineering at an 
        accredited institution of higher education.

    ``(c) Amount of Assistance.--(1) Subject to paragraph (2), the 
amount of education debt reduction payments made to an individual under 
this section may not exceed $82,500 over a total of five years, of which 
not more than $16,500 of such payments may be made in each year.
    ``(2) The total amount payable to an individual under this section 
for any year may not exceed the amount of the principal and interest on 
loans referred to in subsection (b)(3) that is paid by the individual 
during such year.
    ``(d) Payments.--(1) The Secretary shall make education debt 
reduction payments under this section on an annual basis.
    ``(2) The Secretary shall make such a payment--
            ``(A) on the last day of the one-year period beginning on 
        the date on which the individual is accepted into the program 
        established under subsection (a); or
            ``(B) in the case of an individual who received a payment 
        under this section for the preceding fiscal year, on the last 
        day of the one-year period beginning on the date on which the 
        individual last received such a payment.

    ``(3) Notwithstanding any other provision of law, education debt 
reduction payments under this section shall not be considered as income 
or resources in determining eligibility for, or the amount of benefits 
under, any Federal or federally assisted program.
    ``(e) Performance Requirement.--The Secretary may make education 
debt reduction payments to an individual under this section for a year 
only if the Secretary determines that the individual maintained an 
acceptable level of performance in the position or positions served by 
the individual during the year.
    ``(f) Notification of Terms of Provision of Payments.--The Secretary 
shall provide to an individual who receives a payment under this section 
notice in writing of the terms and conditions that apply to such a 
payment.
    ``(g) Covered Costs.--For purposes of subsection (b)(3), costs 
relating to a course of education or training include--
            ``(1) tuition expenses; and
            ``(2) all other reasonable educational expenses, including 
        fees, books, and laboratory expenses.

``Sec. 7904. Preferences in awarding financial assistance

    ``In awarding financial assistance under this chapter, the Secretary 
shall give a preference to qualified individuals who are otherwise 
eligible to receive the financial assistance in the following order of 
priority:

[[Page 120 STAT. 3464]]

            ``(1) Veterans with service-connected disabilities.
            ``(2) Veterans.
            ``(3) Persons described in section 4215(a)(1)(B) of this 
        title.
            ``(4) Individuals who received or are pursuing degrees at 
        institutions designated by the National Security Agency as 
        Centers of Academic Excellence in Information Assurance 
        Education.
            ``(5) Citizens of the United States.

``Sec. 7905. Requirement of honorable discharge for veterans receiving 
                        assistance

    ``No veteran shall receive financial assistance under this chapter 
unless the veteran was discharged from the Armed Forces under honorable 
conditions.

``Sec. 7906. Regulations

    ``The Secretary shall prescribe regulations for the administration 
of this chapter.

``Sec. 7907. Termination

    ``The authority of the Secretary to make a payment under this 
chapter shall terminate on July 31, 2017.''.
            (2) Clerical amendments.--The tables of chapters at the 
        beginning of title 38, and of part V of title 38, are each 
        amended by inserting after the item relating to chapter 78 the 
        following new item:

``79. Information Security Education Assistance Program..........7901''.

    (b) GAO Report.--Not later than three years after the date of the 
enactment of this Act, the Comptroller General shall submit to Congress 
a report on the scholarship and education debt reduction programs under 
chapter 79 of title 38, United States Code, as added by subsection (a).
    (c) <<NOTE: 38 USC 7902 note.>> Applicability of Scholarships.--
Section 7902 of title 38, United States Code, as added by subsection 
(a), may only apply with respect to financial assistance provided for an 
academic semester or term that begins on or after August 1, 2007.

                         TITLE X--OTHER MATTERS

SEC. <<NOTE: 38 USC 303 note.>> 1001. NOTICE TO CONGRESSIONAL VETERANS 
            COMMITTEES OF CERTAIN TRANSFERS OF FUNDS.

    To the extent that the Secretary of Veterans Affairs is required or 
directed, under any provision of law, to provide written notice to any 
committee of Congress other than the Committee on Veterans' Affairs of 
the Senate and the Committee on Veterans' Affairs of the House of 
Representatives on the transfer of appropriations from one account to 
any other account, the Secretary shall also transmit such notice to the 
Committee on Veterans' Affairs of the Senate and the Committee on 
Veterans' Affairs of the House of Representatives.

SEC. 1002. CLARIFICATION OF CORRECTIONAL FACILITIES COVERED BY CERTAIN 
            PROVISIONS OF LAW.

    (a) Payment of Pension During Confinement in Penal Institutions.--
Section 1505(a) <<NOTE: 38 USC 1505.>> is amended by striking ``or local 

[[Page 120 STAT. 3465]]

penal institution'' and inserting ``local, or other penal institution or 
correctional facility''.
    (b) Allowances for Training and Rehabilitation for Veterans With 
Service-Connected Disabilities.--Section <<NOTE: 38 USC 
3108.>> 3108(g)(1) is amended by striking ``or local penal institution'' 
and inserting ``local, or other penal institution or correctional 
facility''.

    (c) Educational Assistance Benefits for Post-Vietnam Era Veterans.--
Section 3231(d)(1) is amended by striking ``or local penal institution'' 
and inserting ``local, or other penal institution or correctional 
facility''.
    (d) Computation of Educational Assistance Allowances for Veterans 
Generally.--Section 3482(g)(1) is amended by striking ``or local penal 
institution'' and inserting ``local, or other penal institution or 
correctional facility''.
    (e) Computation of Educational Assistance Allowance for Survivors 
and Dependents.--Section 3532(e) is amended by striking ``or local penal 
institution'' and inserting ``local, or other penal institution or 
correctional facility''.
    (f) Limitation on Payment of Compensation and Dependency and 
Indemnity Compensation.--Section 5313 is amended by striking ``or local 
penal institution'' each place it appears and inserting ``local, or 
other penal institution or correctional facility''.
    (g) Limitation on Payment of Clothing Allowance.--Section 5313A is 
amended by striking ``or local penal institution'' and inserting 
``local, or other penal institution or correctional facility''.

SEC. 1003. EXTENSION OF AUTHORITY FOR HEALTH CARE FOR PARTICIPATION IN 
            DOD CHEMICAL AND BIOLOGICAL WARFARE TESTING.

    Section 1710(e)(3)(D) is amended by striking ``December 31, 2005'' 
and inserting ``December 31, 2007''.

SEC. 1004. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 38, United States Code.--
            (1) Citation correction.--Section 1718(c)(2) is amended by 
        inserting ``of 1938'' after ``Act''.
            (2) Citation correction.--Section 1785(b)(1) is amended by 
        striking ``Robert B.'' and inserting ``Robert T.''.
            (3) Punctuation correction.--Section 2002(1) is amended by 
        inserting a closing parenthesis before the period at the end.
            (4) Punctuation correction.--Section 2011(a)(1)(C) is 
        amended by inserting a period at the end.
            (5) Cross reference correction.--Section 2041(a)(3)(A)(i) is 
        amended by striking ``under this chapter'' and inserting 
        ``established under section 3722 of this title''.
            (6) Citation correction.--Section 8111(b)(1) is amended by 
        striking ``into the strategic'' and all that follows through 
        ``and Results Act of 1993'' and inserting ``into the strategic 
        plan of each Department under section 306 of title 5 and the 
        performance plan of each Department under section 1115 of title 
        31''.
            (7) Repeal of obsolete text.--Section 8111 is further 
        amended--
                    (A) in subsection (d)(2), by striking ``effective 
                October 1, 2003,''; and
                    (B) in subsection (e)(2)--

[[Page 120 STAT. 3466]]

                          (i) in the second sentence, by striking 
                      ``shall be implemented no later than October 1, 
                      2003, and''; and
                          (ii) in the third sentence, by striking ``, 
                      following implementation of the schedule,''.
            (8) Citation correction.--Section 
        8111A(a)(2)(B)(i) <<NOTE: 38 USC 8111A.>> is amended by striking 
        ``Robert B.'' and inserting ``Robert T.''.

    (b) <<NOTE: Effective date.>> Public Law 107-296.--Effective as of 
November 25, 2002, section 1704(d) of the Homeland Security Act of 2002 
(Public Law 107-296; 116 Stat. 2315) <<NOTE: 38 USC 101 note.>> is 
amended--
            (1) <<NOTE: 38 USC 101.>> by striking ``101(25)(d)'' and 
        inserting ``101(25)(D)''; and
            (2) <<NOTE: 38 USC 3011.>> by striking 
        ``3011(a)(1)(A)(ii)(II)'' and inserting 
        ``3011(a)(1)(A)(ii)(III)''.

SEC. 1005. CODIFICATION OF COST-OF-LIVING ADJUSTMENT PROVIDED IN PUBLIC 
            LAW 109-361.

    (a) Veterans' Disability Compensation.--Section 1114 is amended--
            (1) in subsection (a), by striking ``$112'' and inserting 
        ``$115'';
            (2) in subsection (b), by striking ``$218'' and inserting 
        ``$225'';
            (3) in subsection (c), by striking ``$337'' and inserting 
        ``$348'';
            (4) in subsection (d), by striking ``$485'' and inserting 
        ``$501'';
            (5) in subsection (e), by striking ``$690'' and inserting 
        ``$712'';
            (6) in subsection (f), by striking ``$873'' and inserting 
        ``$901'';
            (7) in subsection (g), by striking ``$1,099'' and inserting 
        ``$1,135'';
            (8) in subsection (h), by striking ``$1,277'' and inserting 
        ``$1,319'';
            (9) in subsection (i), by striking ``$1,436'' and inserting 
        ``$1,483'';
            (10) in subsection (j), by striking ``$2,393'' and inserting 
        ``$2,471'';
            (11) in subsection (k)--
                    (A) by striking ``$87'' both places it appears and 
                inserting ``$89''; and
                    (B) by striking ``$2,977'' and ``$4,176'' and 
                inserting ``$3,075'' and ``$4,313'', respectively;
            (12) in subsection (l), by striking ``$2,977'' and inserting 
        ``$3,075'';
            (13) in subsection (m), by striking ``$3,284'' and inserting 
        ``$3,392'';
            (14) in subsection (n), by striking ``$3,737'' and inserting 
        ``$3,860'';
            (15) in subsections (o) and (p), by striking ``$4,176'' each 
        place it appears and inserting ``$4,313'';
            (16) in subsection (r)--
                    (A) in paragraph (1), by striking ``$1,792'' and 
                inserting ``$1,851''; and
                    (B) in paragraph (2), by striking ``2,669'' and 
                inserting ``$2,757''; and
            (17) in subsection (s), by striking ``$2,678'' and inserting 
        ``$2,766''.

[[Page 120 STAT. 3467]]

    (b) Additional Compensation for Dependents.--Section 
1115(1) <<NOTE: 38 USC 1115.>> is amended--
            (1) in subparagraph (A), by striking ``$135'' and inserting 
        ``$139'';
            (2) in subparagraph (B), by striking ``$233'' and ``$68'' 
        and inserting ``$240'' and ``$70'', respectively;
            (3) in subparagraph (C), by striking ``$91'' and ``$68'' and 
        inserting ``$94'' and ``$70'', respectively;
            (4) in subparagraph (D), by striking ``$109'' and inserting 
        ``$112'';
            (5) in subparagraph (E), by striking ``$257'' and inserting 
        ``$265''; and
            (6) in subparagraph (F), by striking ``$215'' and inserting 
        ``$222''.

    (c) Clothing Allowance for Certain Disabled Veterans.--Section 1162 
is amended by striking ``$641'' and inserting ``$662''.
    (d) Dependency and Indemnity Compensation for Surviving Spouses.--
            (1) New law dic.--Subsection (a) of section 1311 is 
        amended--
                    (A) in paragraph (1), by striking ``$1,033'' and 
                inserting ``$1,067''; and
                    (B) in paragraph (2), by striking ``$221'' and 
                inserting ``$228''.
            (2) Old law dic.--The table in paragraph (3) of such 
        subsection is amended to read as follows:

 
              Pay grade                          Monthly rate                   Pay grade          Monthly rate
 
E-1..................................  $1,067                            W-4....................          $1,276
E-2..................................  $1,067                            O-1....................          $1,128
E-3..................................  $1,067                            O-2....................          $1,165
E-4..................................  $1,067                            O-3....................          $1,246
E-5..................................  $1,067                            O-4....................          $1,319
E-6..................................  $1,067                            O-5....................          $1,452
E-7..................................  $1,104                            O-6....................          $1,637
E-8..................................  $1,165                            O-7....................          $1,768
E-9..................................  $1,2151                           O-8....................          $1,941
W-1..................................  $1,128                            O-9....................          $2,076
W-2..................................  $1,172                            O-10...................         $2,2762
W-3..................................  $1,207                            .......................  ..............
 
1 If the veteran served as Sergeant Major of the Army, Senior Enlisted Advisor of the Navy, Chief Master
  Sergeant of the Air Force, Sergeant Major of the Marine Corps, or Master Chief Petty Officer of the Coast
  Guard, at the applicable time designated by section 1302 of this title, the surviving spouse's rate shall be
  $1,312.
2 If the veteran served as Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army,
  Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, or Commandant of
  the Coast Guard, at the applicable time designated by section 1302 of this title, the surviving spouse's rate
  shall be $2,443.

            (3) Additional dic for children or disability.--Such section 
        is further amended--
                    (A) in subsection (b), by striking ``$257'' and 
                inserting ``$265'';

[[Page 120 STAT. 3468]]

                    (B) in subsection (c), by striking ``$257'' and 
                inserting ``$265''; and
                    (C) in subsection (d), by striking ``$122'' and 
                inserting ``$126''.

    (e) Dependency and Indemnity Compensation for Children.--
            (1) DIC when no surviving spouse.--Section 
        1313(a) <<NOTE: 38 USC 1313.>> is amended--
                    (A) in paragraph (1), by striking ``$438'' and 
                inserting ``$452'';
                    (B) in paragraph (2), by striking ``$629'' and 
                inserting ``$649'';
                    (C) in paragraph (3), by striking ``$819'' and 
                inserting ``$846''; and
                    (D) in paragraph (4), by striking ``$819'' and 
                ``$157'' and inserting ``$846'' and ``$162'', 
                respectively.
            (2) Supplemental dic for certain children.--Section 1314 is 
        amended--
                    (A) in subsection (a), by striking ``$257'' and 
                inserting ``$265'';
                    (B) in subsection (b), by striking ``$438'' and 
                inserting ``$452''; and
                    (C) in subsection (c), by striking ``$218'' and 
                inserting ``$225''.

SEC. 1006. COORDINATION OF PROVISIONS WITH VETERANS PROGRAMS EXTENSION 
            ACT OF 2006.

    (a) Earlier Enactment of This Act.--If this Act is enacted before 
the Veterans Programs Extension Act of 2006 is enacted into law, the 
Veterans Programs Extension Act of 2006, and the amendments made by that 
Act, shall not take effect.
    (b) <<NOTE: 38 USC 101 note, 101 et seq.>> Earlier Enactment of 
Veterans Programs Extension Act of 2006.--If this Act is enacted after 
the enactment of the Veterans Programs Extension Act of 2006, then as of 
the date of the enactment of this Act, the Veterans Programs Extension 
Act of 2006 and the amendments made by that Act shall be deemed for all 
purposes not to have taken effect and the Veterans Programs Extension 
Act of 2006 and the amendments made by that Act shall cease to be in 
effect.

    Approved December 22, 2006.

LEGISLATIVE HISTORY--S. 3421 (H.R. 5815):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 109-643 accompanying H.R. 5815 (Comm. on Veterans'     
Affairs).
SENATE REPORTS: No. 109-328 (Comm. on Veterans' Affairs).
CONGRESSIONAL RECORD, Vol. 152 (2006):
            Sept. 26, considered and passed Senate.
            Dec. 8, considered and passed House, amended. Senate 
                concurred in House amendments.

                                  <all>
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