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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2189 Engrossed in House (EH)]

113th CONGRESS
  1st Session
                                H. R. 2189

_______________________________________________________________________

                                 AN ACT

 
  To improve the processing of disability claims by the Department of 
               Veterans Affairs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.
Sec. 2. Scoring of budgetary effects.
               TITLE I--IMPROVEMENT OF CLAIMS PROCESSING

Sec. 101. Evaluation of backlog of disability claims and appeals of 
                            claims of Department of Veterans Affairs.
Sec. 102. Supplemental reports to the Strategic Plan to Eliminate the 
                            Compensation Claims Backlog.
Sec. 103. Expedition of transfer of certain records.
Sec. 104. Claims processors training.
Sec. 105. Report by Comptroller General of the United States.
Sec. 106. Priority for processing claims of the Department of Veterans 
                            Affairs.
Sec. 107. Public availability of certain information about pending and 
                            completed claims for compensation under the 
                            laws administered by the Secretary of 
                            Veterans Affairs.
Sec. 108. Annual report on processing of claims.
Sec. 109. Department of Veterans Affairs notice of average times for 
                            processing claims and percentage of claims 
                            approved.
Sec. 110. Claim defined.
                  TITLE II--COMPENSATION AND PENSIONS

Sec. 201. Improvements to authority for performance of medical 
                            disabilities examinations by contract 
                            physicians.
Sec. 202. Consideration by Secretary of Veterans Affairs of resources 
                            disposed of for less than fair market value 
                            by individuals applying for pension.
Sec. 203. Bifurcated payments of compensation benefits under laws 
                            administered by the Secretary of Veterans 
                            Affairs.
Sec. 204. Pension for certain veterans covered by Medicaid plans for 
                            services furnished by nursing facilities.
                        TITLE III--OTHER MATTERS

Sec. 301. Review of operation of certain ships during the Vietnam Era.
Sec. 302.  Methods for validating certain service considered to be 
                            active service by the Secretary of Veterans 
                            Affairs.
Sec. 303. Designation of American World War II Cities.
Sec. 304. Observance of Veterans Day.

SEC. 2. SCORING OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

               TITLE I--IMPROVEMENT OF CLAIMS PROCESSING

SEC. 101. EVALUATION OF BACKLOG OF DISABILITY CLAIMS AND APPEALS OF 
              CLAIMS OF DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--There is established a commission or task force to 
evaluate the backlog of claims within the Department of Veterans 
Affairs and the appeals process of claims.
    (b) Studies.--
            (1) Backlog study.--
                    (A) In general.--The Commission or Task Force, 
                acting through the subcommittee described in subsection 
                (d)(2)(A), shall carry out a study on the backlog of 
                claims, including the current process the Secretary of 
                Veterans Affairs uses to evaluate claims and appeals 
                and the laws and regulations applicable to such claims 
                and appeals. Such study shall be a comprehensive 
                evaluation and assessment of the backlog of claims, an 
                analysis of possible improvements to the procedures 
                used to process such claims, and any related issues 
                that the Commission or Task Force considers relevant.
                    (B) Matters included.--In carrying out the study 
                under subparagraph (A), the Commission or Task Force 
                shall examine the following:
                            (i) The backlog of claims, including an 
                        analysis of--
                                    (I) the most effective means to 
                                quickly and accurately resolve all 
                                claims pending as of the date of the 
                                study; and
                                    (II) with respect to the 
                                Department, the annual funding, number 
                                of full-time employees, workload 
                                management practices, and the progress, 
                                as of the date of the study, of the 
                                strategic plan.
                            (ii) Possible improvements to the claims 
                        process, including an evaluation and 
                        recommendations with respect to whether 
                        substantive and structural changes to the 
                        overall claims process are required.
                            (iii) In carrying out the evaluation and 
                        recommendations under subparagraph (B), an 
                        examination of--
                                    (I) options that make no major 
                                substantive changes to the claims 
                                process;
                                    (II) options that maintain the 
                                process but make minor changes; and
                                    (III) options that make broad 
                                changes to the process.
            (2) Appeals process study.--
                    (A) In general.--The Commission or Task Force, 
                acting through the subcommittee described in subsection 
                (d)(2)(B), shall carry out a study on the anticipated 
                increase of appeals of claims, including the current 
                appeals process and the laws and regulations applicable 
                to such appeals. Such study shall be a comprehensive 
                evaluation and assessment of such anticipated increase 
                of appeals claims, an analysis of possible improvements 
                to the procedures used to process such appeals, and any 
                related issues that the Commission or Task Force 
                considers relevant.
                    (B) Matters included.--In carrying out the study 
                under subparagraph (A), the Commission or Task Force 
                shall examine the following:
                            (i) The anticipated surge in appeals of 
                        claims, including an analysis of--
                                    (I) the most effective means to 
                                quickly and accurately resolve pending 
                                appeals and future appeals;
                                    (II) with respect to both the Board 
                                and the Court of Appeals for Veterans 
                                Claims, the annual funding, number of 
                                full-time employees, workload 
                                management practices, and the progress, 
                                as of the date of the study, of the 
                                strategic plan; and
                                    (III) the efficiency, 
                                effectiveness, and utility of the 
                                Veterans Benefits Management System 
                                with respect to appeals operations, 
                                including an identification of key 
                                changes that may need to be implemented 
                                to such system.
                            (ii) Possible improvements to the appeals 
                        process, including an evaluation and 
                        recommendations with respect to whether 
                        substantive and structural changes to the 
                        overall appeals process are required.
                            (iii) In carrying out the evaluation and 
                        recommendations under clause (ii), an 
                        examination of--
                                    (I) options that make no major 
                                substantive changes to the appeals 
                                process;
                                    (II) options that maintain the 
                                process but make minor changes;
                                    (III) options that make broad 
                                changes to the process;
                                    (IV) the necessity of the multi-
                                tiered levels of appeals at the 
                                regional office level, including filing 
                                a notice of disagreement, receipt of a 
                                statement of the case, supplemental 
                                statement of the case (if applicable), 
                                and substantive appeal (VA Form 9);
                                    (V) the role of the Board and the 
                                Appeals Management Center, including--
                                            (aa) the effectiveness of 
                                        the workload management of the 
                                        Board and the Center;
                                            (bb) whether the Board and 
                                        Center should be regionalized 
                                        or maintain the centralized 
                                        structure in the District of 
                                        Columbia;
                                            (cc) whether Board members 
                                        should be required to pass the 
                                        administrative law judges 
                                        certification examination; and
                                            (dd) whether the Board 
                                        should continue to require de 
                                        novo review of appeals; and
                                    (VI) the role of the Court of 
                                Appeals for Veterans Claims and the 
                                United States Court of Appeals for the 
                                Federal Circuit, including--
                                            (aa) the continued 
                                        effectiveness and necessity of 
                                        a multi-tiered structure of 
                                        judicial review;
                                            (bb) whether the Court of 
                                        Appeals for Veterans Claims 
                                        should have Article I or 
                                        Article III status;
                                            (cc) expansion of either 
                                        the Court of Appeals for 
                                        Veterans Claims or the United 
                                        States Court of Appeals for the 
                                        Federal Circuit jurisdiction, 
                                        including by allowing such 
                                        courts to hear class action 
                                        lawsuits with respect to 
                                        claims; and
                                            (dd) the possibility of 
                                        expanding judicial review of 
                                        claims to all Federal circuit 
                                        courts of appeals or allowing 
                                        judicial review beyond the 
                                        Court of Appeals for Veterans 
                                        Claims only by the Supreme 
                                        Court.
            (3) Consideration.--In carrying out the studies under 
        paragraph (1)(A) and (2)(A) and making any recommendations 
        under this section, the Commission or Task Force shall consider 
        the following:
                    (A) The interests of veterans, including with 
                respect to accuracy, fairness, and transparency in the 
                claims process of the Department.
                    (B) The values and requirements of the 
                Constitution, including with respect to compliance with 
                procedural and substantive due process.
                    (C) The public interest, including with respect to 
                the responsible use of available resources.
                    (D) With respect to the study conducted under 
                paragraph (1)(A), the importance of the claimant 
                friendly, nonadversarial nature of the claims process.
                    (E) With respect to the study conducted under 
                paragraph (2)(A), the importance of an appeals process 
                that is efficient and easily understandable by a 
                claimant.
            (4) Role of secretary, chairman of the board, and chief 
        judge.--
                    (A) Information.--In carrying out each study under 
                paragraph (1)(A) and (2)(A), at times that the 
                Commission or Task Force determines appropriate, the 
                Commission or Task Force shall submit to the Secretary 
                of Veterans Affairs, the Chairman of the Board, and the 
                Chief Judge of the Court of Appeals for Veterans 
                Claims, as the case may be, information with respect to 
                remedies and solutions that the Commission or Task 
                Force identifies pursuant to such a study.
                    (B) Implementation.--The Secretary, the Chairman of 
                the Board, and the Chief Judge shall each--
                            (i) fully consider the remedies and 
                        solutions submitted to the Secretary, the 
                        Chairman, or the Chief Judge, as the case may 
                        be, under subparagraph (A);
                            (ii) implement such remedies and solutions 
                        as the Secretary, the Chairman, or the Chief 
                        Judge, respectively, determines appropriate; 
                        and
                            (iii) submit to Congress justification for 
                        failing to implement any such remedy or 
                        solution.
                    (C) Plan.--The Commission or Task Force shall 
                submit to the Secretary, the Chairman of the Board, and 
                the Chief Judge a feasible, timely, and cost-effective 
                plan to eliminate the backlog of appeals of claims 
                based on the remedies and solutions identified pursuant 
                to the study under paragraph (2)(A) and the information 
                submitted under subparagraph (A).
    (c) Comprehensive Reports.--
            (1) Initial comprehensive report.--Not later than 60 days 
        after the date on which the Commission or Task Force first 
        meets, the Commission or Task Force shall submit to the 
        President and Congress an initial comprehensive report on the 
        studies conducted under paragraphs (1)(A) and (2)(A) of 
        subsection (b), including--
                    (A) the findings of the causes of the backlog of 
                claims;
                    (B) a proposed plan to handle the anticipated surge 
                in appeals of claims; and
                    (C) the level of cooperation the Commission or Task 
                Force has received from the Secretary and the heads of 
                other departments or agencies of the Federal 
                Government.
            (2) Interim comprehensive reports.--Not later than 90 days 
        after the date on which the Commission or Task Force first 
        meets, and each 30-day period thereafter ending on the date on 
        which the Commission or Task Force submits the final 
        comprehensive report under paragraph (3), the Commission or 
        Task Force shall submit to the President and Congress a 
        comprehensive report on--
                    (A) the progress of the Secretary with respect to 
                implementing solutions to expedite the elimination of 
                the backlog of claims pursuant to subsection 
                (b)(4)(B)(ii);
                    (B) the progress of the Secretary, the Chairman of 
                the Board, and the Chief Judge of the Court of Appeals 
                for Veterans Claims with respect to implementing 
                solutions to complete appeals of claims in a timely 
                manner in a timely manner pursuant to such subsection; 
                and
                    (C) the level of cooperation the Commission or Task 
                Force has received from the Secretary and the heads of 
                other departments or agencies of the Federal 
                Government.
            (3) Final comprehensive report.--Not later than 180 days 
        after the date on which the Commission or Task Force first 
        meets, the Commission or Task Force shall submit to the 
        President and Congress a comprehensive report on the following:
                    (A) With respect to the study conducted under 
                subsection (b)(1)(A)--
                            (i) The findings, conclusions, and 
                        recommendations of the Commission or Task Force 
                        with respect to the matters referred to in such 
                        subsection.
                            (ii) The recommendations of the Commission 
                        or Task Force for revising and improving the 
                        backlog of claims and the procedures used to 
                        process claims.
                            (iii) The progress of the Secretary with 
                        respect to implementing solutions to expedite 
                        the elimination of the backlog of claims 
                        pursuant to subsection (b)(4)(B)(ii).
                            (iv) Other information and recommendations 
                        with respect to claims as the Commission or 
                        Task Force considers appropriate.
                    (B) With respect to the study conducted under 
                subsection (b)(2)(A)--
                            (i) The findings, conclusions, and 
                        recommendations of the Commission or Task Force 
                        with respect to the matters referred to in such 
                        subsection.
                            (ii) The recommendations of the Commission 
                        or Task Force for revising and improving the 
                        appeals process;
                            (iii) The information described in 
                        subsection (b)(4)(A).
                            (iv) The feasible, timely, and cost 
                        effective plan described in subsection 
                        (b)(4)(C).
                            (v) The progress of the Secretary, the 
                        Chairman of the Board, and the Chief Judge of 
                        the Court of Appeals for Veterans Claims with 
                        respect to implementing solutions to provide 
                        timely appeals of claims.
                            (vi) Other information and recommendations 
                        with respect to the appeals process as the 
                        Commission or Task Force considers appropriate.
    (d) Membership.--
            (1) Number and appointment.--The Commission or Task Force 
        shall be composed of 15 members, appointed as follows:
                    (A) Two members appointed by the Speaker of the 
                House of Representatives, one of whom shall be 
                designated to serve upon the Subcommittee on the 
                Backlog of Claims and one of whom shall be designated 
                to serve upon the Subcommittee on Appeals.
                    (B) Two members appointed by the minority leader of 
                the House of Representatives, one of whom shall be 
                designated to serve upon the Subcommittee on the 
                Backlog of Claims and one of whom shall be designated 
                to serve upon the Subcommittee on Appeals.
                    (C) Two members appointed by the majority leader of 
                the Senate, one of whom shall be designated to serve 
                upon the Subcommittee on the Backlog of Claims and one 
                of whom shall be designated to serve upon the 
                Subcommittee on Appeals.
                    (D) Two members appointed by the minority leader of 
                the Senate, one of whom shall be designated to serve 
                upon the Subcommittee on the Backlog of Claims and one 
                of whom shall be designated to serve upon the 
                Subcommittee on Appeals.
                    (E) Three members appointed by the President, two 
                of whom shall be designated to serve upon the 
                Subcommittee on the Backlog of Claims and one of whom 
                shall be designated to serve upon the Subcommittee on 
                Appeals.
                    (F) One member appointed by the Secretary of 
                Defense, whom shall be designated to serve upon the 
                Subcommittee on the Backlog of Claims.
                    (G) Two members appointed by the Secretary of 
                Veterans Affairs, one of whom shall be designated to 
                serve upon the Subcommittee on the Backlog of Claims 
                and one of whom shall be designated to serve upon the 
                Subcommittee on Appeals.
                    (H) One member appointed by the Chief Judge of the 
                Court of Appeals for Veterans Claims, whom shall be 
                designated to serve upon the Subcommittee on Appeals.
            (2) Subcommittees.--The Commission or Task Force shall have 
        two subcommittees as follows:
                    (A) A Subcommittee on the Backlog of Claims 
                consisting of the eight members designated in 
                accordance with paragraph (1).
                    (B) A Subcommittee on Appeals consisting of the 
                seven members designated in accordance with paragraph 
                (1).
            (3) Qualifications.--Each member appointed under paragraph 
        (1) shall be appointed based on the experience of the member as 
        a veteran or on the subject matter expertise or other relevant 
        experience of the member.
            (4) Advisors.--
                    (A) In general.--In addition to the 15 members 
                appointed under paragraph (1), the Commission or Task 
                Force shall--
                            (i) have five nonvoting, nonmember 
                        advisors, appointed by a majority of the 
                        Commission or Task Force, each from a different 
                        organization that represents the interests of 
                        veterans; and
                            (ii) seek advice from experts from 
                        nongovernmental organizations (including 
                        veterans service organizations and military 
                        organizations), the Internet technology 
                        industry, and the insurance industry.
                    (B) Advice.--Individuals described in clause (i) 
                and (ii) of subparagraph (A) shall provide advice to 
                both subcommittees described in paragraph (2).
            (5) Chairman.--The President shall designate a member of 
        the Commission or Task Force who is appointed by the President 
        and designated to serve upon the Subcommittee on the Backlog of 
        Claims to serve as the chairman of the Commission or Task 
        Force. The chairman may designate a member to serve as the 
        chairman of the Subcommittee on the Backlog of Claims and a 
        member to serve as the chairman of the Subcommittee on Appeals 
        to chair such subcommittees as the designee of the chairman of 
        the Commission or Task Force.
            (6) Period of appointment.--Members of the Commission or 
        Task Force shall be appointed for the life of the Commission or 
        Task Force. A vacancy shall not affect its powers.
            (7) Vacancy.--A vacancy on the Commission or Task Force 
        shall be filled in the manner in which the original appointment 
        was made.
            (8) Appointment deadline.--The appointment of members of 
        the Commission or Task Force established in this section shall 
        be made not later than 15 days after the date of the enactment 
        of this Act.
    (e) Meetings.--
            (1) Initial meeting.--The Commission or Task Force shall 
        hold its first meeting not later than 15 days after the date on 
        which a majority of the members are appointed.
            (2) Meetings.--The Commission or Task Force shall meet at 
        the call of the chairman.
            (3) Quorum.--A majority of the members of the Commission or 
        Task Force shall constitute a quorum, but a lesser number may 
        hold hearings.
    (f) Powers of the Commission or Task Force.--
            (1) Hearings.--The Commission or Task Force may hold such 
        hearings, sit and act at such times and places, take such 
        testimony, and receive such evidence as the Commission or Task 
        Force considers advisable to carry out the purposes of this 
        section.
            (2) Information from federal agencies.--The Commission or 
        Task Force may secure directly from any department or agency of 
        the Federal Government such information as the Commission or 
        Task Force considers necessary to carry out the provisions of 
        this section. Upon request of the chairman, the head of such 
        department or agency shall furnish such information to the 
        Commission or Task Force.
            (3) Postal services.--The Commission or Task Force may use 
        the United States mails in the same manner and under the same 
        conditions as other departments and agencies of the Federal 
        Government.
            (4) Gifts.--The Commission or Task Force may accept, use, 
        and dispose of gifts or donations of service or property.
    (g) Personnel Matters.--
            (1) Compensation of members.--Each member of the Commission 
        or Task Force who is not an officer or employee of the United 
        States shall be compensated at a rate equal to the daily 
        equivalent of the annual rate of basic pay prescribed for level 
        IV of the Executive Schedule under section 5315 of title 5, 
        United States Code, for each day (including travel time) during 
        which the member is engaged in the performance of the duties of 
        the Commission or Task Force. All members of the Commission or 
        Task Force who are officers or employees of the United States 
        shall serve without compensation in addition to that received 
        for their services as officers or employees of the United 
        States.
            (2) Travel expenses.--The members of the Commission or Task 
        Force shall be allowed travel expenses, including per diem in 
        lieu of subsistence, at rates authorized for employees of 
        agencies under subchapter I of chapter 57 of title 5, United 
        States Code, while away from their homes or regular places of 
        business in the performance of service of the Commission or 
        Task Force.
            (3) Staff.--
                    (A) Appointment.--The chairman of the Commission or 
                Task Force may, without regard to the civil service 
                laws and regulations, appoint an executive director and 
                such other personnel as may be necessary to enable the 
                Commission or Task Force to perform its duties. The 
                appointment of an executive director shall be subject 
                to the approval of the Commission or Task Force.
                    (B) Compensation.--The chairman of the Commission 
                or Task Force may fix the compensation of the executive 
                director and other personnel without regard to the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of title 5, United States Code, relating to 
                classification of positions and General Schedule pay 
                rates, except that the rate of pay for the executive 
                director and other personnel may not exceed the rate 
                payable for level V of the Executive Schedule under 
                section 5316 of such title.
            (4) Detail of government employees.--Upon request of the 
        chairman of the Commission or Task Force, the head of any 
        department or agency of the Federal Government may detail, on a 
        nonreimbursable basis, any personnel of that department or 
        agency to the Commission or Task Force to assist it in carrying 
        out its duties.
            (5) Procurement of temporary and intermittent services.--
        The chairman of the Commission or Task Force may procure 
        temporary and intermittent services under section 3109(b) of 
        title 5, United States Code, at rates for individuals which do 
        not exceed the daily equivalent of the annual rate of basic pay 
        prescribed for level V of the Executive Schedule under section 
        5316 of such title.
    (h) Termination of Commission or Task Force.--The Commission or 
Task Force shall terminate 60 days after the date on which the 
Commission or Task Force submits the final comprehensive report under 
subsection (c)(3).
    (i) Funding.--
            (1) In general.--The Secretary shall, upon the request of 
        the chairman of the Commission or Task Force, make available to 
        the Commission or Task Force such amounts as the Commission or 
        Task Force may require to carry out the duties of the 
        Commission or Task Force under this section.
            (2) Availability.--Any sums made available to the 
        Commission or Task Force shall remain available, without fiscal 
        year limitation, until the termination of the Commission or 
        Task Force.
    (j) Definitions.--In this section:
            (1) The term ``appeals process'' means the process to 
        appeal the determination by the Secretary of a claim beginning 
        with the notice of disagreement filed pursuant to section 7105 
        of title 38, United States Code, and ending with the review of 
        a decision by the Supreme Court pursuant to section 7292(c) of 
        such title.
            (2) The term ``Board'' means the Board of Veterans' 
        Appeals.
            (3) The term ``strategic plan'' means the Strategic Plan to 
        Eliminate the Compensation Claims Backlog, published by the 
        Secretary of Veterans Affairs on January 25, 2013.

SEC. 102. SUPPLEMENTAL REPORTS TO THE STRATEGIC PLAN TO ELIMINATE THE 
              COMPENSATION CLAIMS BACKLOG.

    Not later than 60 days after the date of the enactment of this Act, 
and every 120 days thereafter until Memorial Day (May 25), 2015, the 
Secretary of Veterans Affairs shall submit to Congress a supplemental 
report on the implementation by the Department of Veterans Affairs of 
the Strategic Plan to Eliminate the Compensation Claims Backlog. Each 
such report shall include--
            (1) verification that during the period covered by the 
        report, each claim was approved or denied by not later than 125 
        days after the date on which the claim is submitted with an 
        accuracy rate of 98 percent, as specified in the Strategic 
        Plan;
            (2) a description of the specific measures, procedures, and 
        metrics used to assess the implementation of the Strategic Plan 
        for purposes of the supplemental report; and
            (3) a detailed timeline for the implementation of each 
        initiative contained in the Strategic Plan.

SEC. 103. EXPEDITION OF TRANSFER OF CERTAIN RECORDS.

    (a) SSA Records.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall enter 
into an agreement with the Commissioner of the Social Security 
Administration to ensure that the Commissioner transfers to the 
Secretary disability or medical records of the Commissioner that the 
Secretary will use to evaluate a claim by not later than 30 days after 
the Secretary requests such records.
    (b) DOD Records.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall enter 
into an agreement with the Secretary of Defense to ensure that the 
Secretary of Defense transfers to the Secretary of Veterans Affairs 
medical records of members or former members of the Armed Forces that 
the Secretary will use to evaluate a claim by not later than 30 days 
after the Secretary requests such records.
    (c) National Guard Records.--Not later than 60 days after the date 
of the enactment of this Act, the Secretary of Veterans Affairs and the 
Secretary of Defense shall jointly--
            (1) submit to Congress a plan to reduce to 30 days the 
        amount of time needed to provide members of the National Guard 
        and the Secretary of Veterans Affairs with the medical records 
        of such members, including by partnering with appropriate 
        officials of Federal or State departments or agencies; and
            (2) implement such plan.
    (d) Effective Date.--This section shall take effect on the date 
that is one year after the date of the enactment of this Act.

SEC. 104. CLAIMS PROCESSORS TRAINING.

    (a) Establishment.--The Secretary of Veterans Affairs shall 
establish a training program to provide newly hired claims processors 
of the Department of Veterans Affairs with training for a period of not 
less than two years. In carrying out such program, the Secretary shall 
identify successful claims processors of the Department who can assist 
in the training of newly hired claims processors.
    (b) Ability to Process Claims.--The Secretary shall carry out the 
training program established under subsection (a) without increasing 
the amount of time in which claims are processed by the Department.
    (c) Effective Date.--This section shall take effect on the date 
that is one year after the date of the enactment of this Act.

SEC. 105. REPORT BY COMPTROLLER GENERAL OF THE UNITED STATES.

    Not later than one year after the date of the enactment of this 
Act, the Comptroller General of the United States shall submit to 
Congress a report on the progress of the Secretary of Veterans Affairs 
in improving the timeliness of claims processing and eliminating the 
backlog of claims. The report shall include any recommendations of the 
Comptroller General with respect to improving the ability of the 
Secretary to make such progress.

SEC. 106. PRIORITY FOR PROCESSING CLAIMS OF THE DEPARTMENT OF VETERANS 
              AFFAIRS.

    (a) In General.--Subchapter I of chapter 51 of title 38, United 
States Code, is amended by adding at the end the following new section:
``Sec. 5109C. Priority for processing claims
    ``(a) Priority.--In processing claims for compensation under this 
chapter, the Secretary shall provide the following claimants with 
priority over other claimants:
            ``(1) Veterans who have attained the age of 70.
            ``(2) Veterans who are terminally ill.
            ``(3) Veterans with life-threatening illnesses.
            ``(4) Homeless veterans (as defined in section 2002 of this 
        title).
            ``(5) Veterans who were awarded the Medal of Honor.
            ``(6) Veterans who are former prisoners of war.
            ``(7) Veterans whose claims are being reviewed again in 
        relation to a previously denied claim relating to military 
        sexual trauma.
            ``(8) Veterans whom the Secretary determines, on a case-by-
        case basis, are seriously or very seriously injured.
            ``(9) Veterans whom the Secretary determines, on a case-by-
        case basis, should be given priority under this section based 
        on an application for good cause established by the Secretary.
    ``(b) Regulations.--The Secretary shall prescribe regulations to 
carry out subsection (a).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
5109B the following new item:

``5109C. Priority for processing claims.''.

SEC. 107. PUBLIC AVAILABILITY OF CERTAIN INFORMATION ABOUT PENDING AND 
              COMPLETED CLAIMS FOR COMPENSATION UNDER THE LAWS 
              ADMINISTERED BY THE SECRETARY OF VETERANS AFFAIRS.

    (a) In General.--Subchapter I of chapter 51 of title 38, United 
States Code, is amended by adding after section 5109C, as added by 
section 106, the following new section:
``Sec. 5109D. Information about pending and completed claims
    ``(a) Availability of Information.--The Secretary shall maintain on 
the Internet website of the Department publicly accessible information 
about pending and completed claims for compensation under chapter 11 of 
this title. Such information shall include each of the following:
            ``(1) For each regional office and for the Department as a 
        whole--
                    ``(A) the average number of days between the date 
                of the submittal of a claim and the date of the 
                decision with respect to the claim for each of the 
                preceding three-month and one-year period;
                    ``(B) the average number of days such a claim is 
                pending during the preceding three-month and one-year 
                periods;
                    ``(C) the quality and accuracy rating of the claims 
                adjudication process during the preceding three-month 
                and one-year periods;
                    ``(D) the number of claims pending;
                    ``(E) the number of pending claims that have been 
                pending for more than 125 days; and
                    ``(F) the number of claims completed during--
                            ``(i) the current month, to date;
                            ``(ii) the month preceding the current 
                        month;
                            ``(iii) the current calendar year, to date; 
                        and
                            ``(iv) the calendar year preceding the 
                        current calendar year.
            ``(2) For each medical condition for which a claim for 
        compensation is submitted, for each regional office and for the 
        Department as a whole--
                    ``(A) the average number of days between the date 
                of the submittal of a claim relating to such medical 
                condition and the date of the decision with respect to 
                the claim for each of the preceding three-month and 
                one-year period;
                    ``(B) the average number of days such a claim is 
                pending during the preceding three-month and one-year 
                periods;
                    ``(C) the quality and accuracy rating of the claims 
                adjudication process as applied to claims relating to 
                such medical condition during the preceding three-month 
                and one-year periods;
                    ``(D) the number of pending claims relating to such 
                condition;
                    ``(E) the number of such pending claims that have 
                been pending for more than 125 days; and
                    ``(F) the number of claims relating to such medical 
                condition completed during--
                            ``(i) the current month, to date;
                            ``(ii) the month preceding current month;
                            ``(iii) the current calendar year, to date; 
                        and
                            ``(iv) the calendar year preceding the 
                        current calendar year.
    ``(b) Updates.--The Secretary shall update the information on the 
website under subsection (a) not less frequently than once every seven 
days.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
5109C, as added by section 106, the following new item:

``5109D. Information about pending and completed claims.''.

SEC. 108. ANNUAL REPORT ON PROCESSING OF CLAIMS.

    (a) In General.--Subchapter I of chapter 51 of title 38, United 
States Code, is amended by adding after section 5109D, as added by 
section 107, the following new section:
``Sec. 5109E. Annual report on processing of claims
    ``(a) Annual Report.--The Secretary shall include in the annual 
report to Congress required under section 529 of this title information 
on the following:
            ``(1) The automatic processing of claims for compensation.
            ``(2) The performance of any regional office that fails to 
        meet the administrative goals of the regional office with 
        respect to timeliness and accuracy in processing claims for 
        compensation.
            ``(3) The timeliness of receiving information pursuant to a 
        request by the Secretary to the head of another department or 
        agency of the United States for information required by the 
        Secretary in adjudicating a claim for compensation under 
        chapter 11 of this title.
    ``(b) Matters Included.--In carrying out subsection (a) to include 
information in the report required under section 529 of this title, the 
Secretary shall include the following:
            ``(1) With respect to the information required by 
        subsection (a)(1)--
                    ``(A) each medical condition for which claims 
                relating to such condition were processed in an 
                electronic automated fashion during the fiscal year 
                covered by the report;
                    ``(B) the feasibility of processing any additional 
                medical conditions in an electronic automated fashion 
                and any barriers to such processing, including any such 
                barriers relating to the schedule for rating 
                disabilities under section 1155 of this title;
                    ``(C) the number of claims for compensation 
                relating to each medical condition submitted during 
                such fiscal year; and
                    ``(D) for each medical condition, the percentage of 
                claims denied and the percentage of claims approved 
                during such fiscal year.
            ``(2) With respect to the information required by 
        subsection (a)(2), in the case of any regional office that, for 
        the fiscal year covered by the report, did not meet the 
        administrative goal of having no claim pending for more than 
        125 days and achieving an accuracy rating of 98 percent--
                    ``(A) a signed statement prepared by the individual 
                serving as director of the regional office as of the 
                date of the submittal of the report containing--
                            ``(i) an explanation for why the regional 
                        office did not meet the goal;
                            ``(ii) a description of the additional 
                        resources needed to enable the regional office 
                        to reach the goal; and
                            ``(iii) a description of any additional 
                        actions planned for the subsequent fiscal year 
                        that are proposed to enable the regional office 
                        to meet the goal; and
                    ``(B) a statement prepared by the Under Secretary 
                for Benefits explaining how the failure of the regional 
                office to meet the goal affected the performance 
                evaluation of the director of the regional office.
            ``(3) With respect to the information required by 
        subsection (a)(3)--
                    ``(A) the number of requests described in such 
                paragraph made during the fiscal year covered by the 
                report; and
                    ``(B) the average response time for such requests 
                made during each month of such fiscal year, as 
                determined based on the period beginning on the date on 
                which the Secretary made the request and ending on the 
                date on which the Secretary determines that the request 
                is completed.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
5109D, as added by section 107, the following new item:

``5109E. Annual report on processing of claims.''.
    (c) Effective Date.--Section 5109E of title 38, United States Code, 
as added by subsection (a) shall take effect on the date that is one 
year after the date of the enactment of this Act.

SEC. 109. DEPARTMENT OF VETERANS AFFAIRS NOTICE OF AVERAGE TIMES FOR 
              PROCESSING CLAIMS AND PERCENTAGE OF CLAIMS APPROVED.

    (a) Public Notice.--The Secretary of Veterans Affairs shall post 
the information described in subsection (c)--
            (1) in a conspicuous place in each regional office and 
        claims intake facilities of the Department of Veterans Affairs; 
        and
            (2) on the Internet website of the Department.
    (b) Notice to Applicants.--
            (1) In general.--The Secretary shall provide to each person 
        who submits a claim for benefits under the laws administered by 
        the Secretary before the person submits such claim--
                    (A) notice of the information described in 
                subsection (c); and
                    (B) notice that, during the period ending on August 
                6, 2015, the person is eligible to receive up to an 
                extra year of benefits payments if the person files an 
                original claim that is fully developed.
            (2) Acknowledgment of receipt of notice.--Each person who 
        submits a claim for benefits under the laws administered by the 
        Secretary shall include in such application a signed form 
        acknowledging that the person received the information 
        described in subsection (c).
    (c) Information Described.--
            (1) In general.--The information described in this 
        subsection is the following:
                    (A) The average processing time of the claims 
                described in paragraph (2) and the percentage of such 
                submitted claims for which benefits are awarded.
                    (B) The percentage of each of the following types 
                of submitted claims for benefits under the laws 
                administered by the Secretary of Veterans Affairs for 
                which benefits are awarded:
                            (i) Claims filed by veterans who authorized 
                        a veterans service organization to act on the 
                        veterans' behalf under a durable power of 
                        attorney.
                            (ii) Claims filed by veterans who 
                        authorized a person other than a veterans 
                        service organization to act on the veterans' 
                        behalf under a durable power of attorney.
                            (iii) Claims filed by veterans who did not 
                        authorize a person to act on the veterans' 
                        behalf under a durable power of attorney.
            (2) Claims described.--The claims described in this 
        paragraph are each of the following types of claims for 
        benefits under the laws administered by the Secretary of 
        Veterans Affairs:
                    (A) A fully developed claim that is submitted in 
                standard electronic form.
                    (B) A fully developed claim that is submitted in 
                standard paper form.
                    (C) A claim that is not fully developed that is 
                submitted in standard electronic form.
                    (D) A claim that is not fully developed that is 
                submitted in standard paper form.
                    (E) A claim that is not fully developed that is 
                submitted in nonstandard paper form.
            (3) Update of information.--The information described in 
        this subsection shall be updated not less frequently than once 
        each fiscal quarter.
    (d) Effective Date.--This section shall take effect on the date 
that is one year after the date of the enactment of this Act.

SEC. 110. CLAIM DEFINED.

    Except as otherwise provided, in this title, the term ``claim'' 
means a claim for disability compensation under the laws administered 
by the Secretary of Veterans Affairs.

                  TITLE II--COMPENSATION AND PENSIONS

SEC. 201. IMPROVEMENTS TO AUTHORITY FOR PERFORMANCE OF MEDICAL 
              DISABILITIES EXAMINATIONS BY CONTRACT PHYSICIANS.

    (a) Extension of Temporary Authority.--Subsection (c) of section 
704 of the Veterans Benefits Act of 2003 (38 U.S.C. 5101 note) is 
amended by striking ``December 31, 2013'' and inserting ``December 31, 
2016''.
    (b) Licensure of Contract Physicians.--
            (1) Temporary authority.--Such section 704 is further 
        amended--
                    (A) by redesignating subsection (d) as subsection 
                (e); and
                    (B) by inserting after subsection (c) the following 
                new subsection (d):
    ``(d) Licensure of Contract Physicians.--
            ``(1) In general.--Notwithstanding any law regarding the 
        licensure of physicians, a physician described in paragraph (2) 
        may conduct an examination pursuant to a contract entered into 
        under subsection (b) at any location in any State, the District 
        of Columbia, or a Commonwealth, territory, or possession of the 
        United States, so long as the examination is within the scope 
        of the authorized duties under such contract.
            ``(2) Physician described.--A physician described in this 
        paragraph is a physician who--
                    ``(A) has a current license to practice the health 
                care profession of the physician; and
                    ``(B) is performing authorized duties for the 
                Department of Veterans Affairs pursuant to a contract 
                entered into under subsection (b).''.
            (2) Pilot program.--Section 504 of the Veterans' Benefits 
        Improvement Act of 1996 (38 U.S.C. 5101 note) is amended--
                    (A) by redesignating subsections (c) and (d) as 
                subsections (d) and (e), respectively; and
                    (B) by inserting after subsection (b) the following 
                new subsection (c):
    ``(c) Licensure of Contract Physicians.--
            ``(1) In general.--Notwithstanding any law regarding the 
        licensure of physicians, a physician described in paragraph (2) 
        may conduct an examination pursuant to a contract entered into 
        under subsection (a) at any location in any State, the District 
        of Columbia, or a Commonwealth, territory, or possession of the 
        United States, so long as the examination is within the scope 
        of the authorized duties under such contract.
            ``(2) Physician described.--A physician described in this 
        paragraph is a physician who--
                    ``(A) has a current license to practice the health 
                care profession of the physician; and
                    ``(B) is performing authorized duties for the 
                Department of Veterans Affairs pursuant to a contract 
                entered into under subsection (a).''.
    (c) Expansion of Pilot Program.--Subsection (b) of such section 504 
is amended to read as follows:
    ``(b) Locations.--
            ``(1) Number.--The Secretary may carry out the pilot 
        program under this section through not more than 15 regional 
        offices of the Department of Veterans Affairs.
            ``(2) Selection.--The Secretary shall select the regional 
        offices under paragraph (1) by analyzing appropriate data to 
        determine the regional offices that require support. Such 
        appropriate data shall include--
                    ``(A) the number of backlogged claims;
                    ``(B) the total pending case workload;
                    ``(C) the length of time cases have been pending;
                    ``(D) the accuracy of completed cases;
                    ``(E) the overall timeliness of completed cases;
                    ``(F) the availability and workload of the 
                examination units and physicians of the medical centers 
                in the regional office; and
                    ``(G) any other data the Secretary determines 
                appropriate.
            ``(3) Annual analysis.--The Secretary shall carry out the 
        data analysis of the regional offices under paragraph (2) 
        during each year in which the program under this section is 
        carried out to determine the regional offices selected under 
        paragraph (1) for such year.''.
    (d) Effective Date.--This section and the amendment made by this 
section shall take effect on the date that is one year after the date 
of the enactment of this Act.

SEC. 202. CONSIDERATION BY SECRETARY OF VETERANS AFFAIRS OF RESOURCES 
              DISPOSED OF FOR LESS THAN FAIR MARKET VALUE BY 
              INDIVIDUALS APPLYING FOR PENSION.

    (a) Veterans.--Section 1522 of title 38, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' before ``The Secretary''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2)(A) If a veteran otherwise eligible for payment of pension 
under section 1513 or 1521 of this title or the spouse of such veteran 
disposes of covered resources for less than fair market value on or 
after the look-back date described in subparagraph (C)(i), the 
Secretary shall deny or discontinue the payment of pension to such 
veteran under section 1513 or 1521 of this title, as the case may be, 
for months during the period beginning on the date described in 
subparagraph (D) and equal to the number of months calculated as 
provided in subparagraph (E).
    ``(B)(i) For purposes of this paragraph, a covered resource is any 
resource that was a part of the corpus of the estate of the veteran or, 
if the veteran has a spouse, the corpus of the estates of the veteran 
and of the veteran's spouse, that the Secretary considers that under 
all the circumstances, if the veteran or spouse had not disposed of 
such resource, it would be reasonable that the resource (or some 
portion of the resource) be consumed for the veteran's maintenance.
    ``(ii) For purposes of this paragraph, the Secretary may consider, 
in accordance with regulations the Secretary shall prescribe, a 
transfer of an asset (including a transfer of an asset to an annuity, 
trust, or other financial instrument or investment) a disposal of a 
covered resource for less than fair market value if such transfer 
reduces the amount in the corpus of the estate of the veteran or, if 
the veteran has a spouse, the corpus of the estates of the veteran and 
of the veteran's spouse, that the Secretary considers, under all the 
circumstances, would be reasonable to be consumed for the veteran's 
maintenance.
    ``(C)(i) The look-back date described in this clause is a date that 
is 36 months before the date described in clause (ii).
    ``(ii) The date described in this clause is the date on which the 
veteran applies for pension under section 1513 or 1521 of this title 
or, if later, the date on which the veteran (or the spouse of the 
veteran) disposes of covered resources for less than fair market value.
    ``(D) The date described in this subparagraph is the first day of 
the first month in or after which covered resources were disposed of 
for less than fair market value and which does not occur in any other 
period of ineligibility under this paragraph.
    ``(E) The number of months calculated under this subparagraph shall 
be equal to--
            ``(i) the total, cumulative uncompensated value of the 
        portion of covered resources so disposed of by the veteran (or 
        the spouse of the veteran) on or after the look-back date 
        described in subparagraph (C)(i) that the Secretary determines 
        would reasonably have been consumed for the veteran's 
        maintenance; divided by
            ``(ii) the maximum amount of monthly pension that is 
        payable to a veteran under section 1513 or 1521 of this title, 
        including the maximum amount of increased pension payable under 
        such sections on account of family members, but not including 
        any amount of pension payable under such sections because a 
        veteran is in need of regular aid and attendance or is 
        permanently housebound,
rounded, in the case of any fraction, to the nearest whole number, but 
shall not in any case exceed 36 months.'';
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' before ``The Secretary''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2)(A) If a veteran otherwise eligible for payment of increased 
pension under subsection (c), (d), (e), or (f) of section 1521 of this 
title on account of a child, the spouse of the veteran, or the child 
disposes of covered resources for less than fair market value on or 
after the look-back date described in subparagraph (C)(i), the 
Secretary shall deny or discontinue payment of such increased pension 
for months during the period beginning on the date described in 
subparagraph (D) and equal to the number of months calculated as 
provided in subparagraph (E).
    ``(B)(i) For purposes of this paragraph, a covered resource is any 
resource that was a part of the corpus of the estate of the child that 
the Secretary considers that under all the circumstances, if the 
veteran, the spouse of the veteran, or the child had not disposed of 
such resource, it would be reasonable that the resource (or some 
portion of the resource) be consumed for the child's maintenance.
    ``(ii) For purposes of this paragraph, the Secretary may consider, 
in accordance with regulations the Secretary shall prescribe, a 
transfer of an asset (including a transfer of an asset to an annuity, 
trust, or other financial instrument or investment) a disposal of a 
covered resource for less than fair market value if such transfer 
reduces the amount in the corpus of the estate of the child that the 
Secretary considers, under all the circumstances, would be reasonable 
to be consumed for the child's maintenance.
    ``(C)(i) The look-back date described in this clause is a date that 
is 36 months before the date described in clause (ii).
    ``(ii) The date described in this clause is the date on which the 
veteran applies for payment of increased pension under subsection (c), 
(d), (e), or (f) of section 1521 of this title on account of a child 
or, if later, the date on which the veteran, the spouse of the veteran, 
or the child disposes of covered resources for less than fair market 
value.
    ``(D) The date described in this subparagraph is the first day of 
the first month in or after which covered resources were disposed of 
for less than fair market value and which does not occur in any other 
period of ineligibility under this paragraph.
    ``(E) The number of months calculated under this subparagraph shall 
be equal to--
            ``(i) the total, cumulative uncompensated value of the 
        portion of covered resources so disposed of by the veteran, the 
        spouse of the veteran, or the child on or after the look-back 
        date described in subparagraph (C)(i) that the Secretary 
        determines would reasonably have been consumed for the child's 
        maintenance; divided by
            ``(ii) the maximum amount of increased monthly pension that 
        is payable to a veteran under subsection (c), (d), (e), or (f) 
        of section 1521 of this title on account of a child,
rounded, in the case of any fraction, to the nearest whole number, but 
shall not in any case exceed 36 months.''; and
            (3) by adding at the end the following new subsections:
    ``(c)(1) The Secretary shall not deny or discontinue payment of 
pension under section 1513 or 1521 of this title or payment of 
increased pension under subsection (c), (d), (e), or (f) of section 
1521 of this title on account of a child by reason of the application 
of subsection (a)(2) or (b)(2) of this section to the disposal of 
resources by an individual to the extent that--
            ``(A) a satisfactory showing is made to the Secretary (in 
        accordance with regulations promulgated by the Secretary) that 
        all resources disposed of for less than fair market value have 
        been returned to the individual who disposed of the resources; 
        or
            ``(B) the Secretary determines, under procedures 
        established by the Secretary, that the denial or discontinuance 
        of payment would work an undue hardship as determined on the 
        basis of criteria established by the Secretary.
    ``(2) At the time a veteran applies for pension under section 1513 
or 1521 of this title or increased pension under subsection (c), (d), 
(e), or (f) of section 1521 of this title on account of a child, and at 
such other times as the Secretary considers appropriate, the Secretary 
shall--
            ``(A) inform such veteran of the provisions of subsections 
        (a)(2) and (b)(2) providing for a period of ineligibility for 
        payment of pension under such sections for individuals who make 
        certain dispositions of resources for less than fair market 
        value; and
            ``(B) obtain from such veteran information which may be 
        used in determining whether or not a period of ineligibility 
        for such payments would be required by reason of such 
        subsections.
    ``(d) Subsections (a)(2) and (b)(2) shall not apply with respect to 
the disposal of resources or the transfer of an asset if such disposal 
or transfer is to a trust described in section 1917(d)(4) of the Social 
Security Act (42 U.S.C. 1396p(d)(4)) that is established for the 
benefit of a child of the veteran.''.
    (b) Surviving Spouses and Children.--Section 1543 of such title is 
amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraph (2) as paragraph 
                (3);
                    (B) by inserting after paragraph (1) the following 
                new paragraph (2):
    ``(2)(A) If a surviving spouse otherwise eligible for payment of 
pension under section 1541 of this title disposes of covered resources 
for less than fair market value on or after the look-back date 
described in subparagraph (C)(i), the Secretary shall deny or 
discontinue the payment of pension to such surviving spouse under 
section 1541 of this title for months during the period beginning on 
the date described in subparagraph (D) and equal to the number of 
months calculated as provided in subparagraph (E).
    ``(B)(i) For purposes of this paragraph, a covered resource is any 
resource that was a part of the corpus of the estate of the surviving 
spouse that the Secretary considers that under all the circumstances, 
if the surviving spouse had not disposed of such resource, it would be 
reasonable that the resource (or some portion of the resource) be 
consumed for the surviving spouse's maintenance.
    ``(ii) For purposes of this paragraph, the Secretary may consider, 
in accordance with regulations the Secretary shall prescribe, a 
transfer of an asset (including a transfer of an asset to an annuity, 
trust, or other financial instrument or investment) a disposal of a 
covered resource for less than fair market value if such transfer 
reduces the amount in the corpus of the estate of the surviving spouse 
that the Secretary considers, under all the circumstances, would be 
reasonable to be consumed for the surviving spouse's maintenance.
    ``(C)(i) The look-back date described in this clause is a date that 
is 36 months before the date described in clause (ii).
    ``(ii) The date described in this clause is the date on which the 
surviving spouse applies for pension under section 1541 of this title 
or, if later, the date on which the surviving spouse disposes of 
covered resources for less than fair market value.
    ``(D) The date described in this subparagraph is the first day of 
the first month in or after which covered resources were disposed of 
for less than fair market value and which does not occur in any other 
period of ineligibility under this paragraph.
    ``(E) The number of months calculated under this subparagraph shall 
be equal to--
            ``(i) the total, cumulative uncompensated value of the 
        portion of covered resources so disposed of by the surviving 
        spouse on or after the look-back date described in subparagraph 
        (C)(i) that the Secretary determines would reasonably have been 
        consumed for the surviving spouse's maintenance; divided by
            ``(ii) the maximum amount of monthly pension that is 
        payable to a surviving spouse under section 1541 of this title, 
        including the maximum amount of increased pension payable under 
        such section on account of a child, but not including any 
        amount of pension payable under such section because a 
        surviving spouse is in need of regular aid and attendance or is 
        permanently housebound,
rounded, in the case of any fraction, to the nearest whole number, but 
shall not in any case exceed 36 months.
    ``(F) In the case of a transfer by the surviving spouse during the 
veteran's lifetime that resulted in a period of ineligibility for the 
veteran under section 1522 of this title, the Secretary shall apply to 
the surviving spouse any remaining ineligibility for that period.''; 
and
                    (C) by adding at the end the following new 
                paragraph:
    ``(4)(A) If a surviving spouse otherwise eligible for payment of 
increased pension under subsection (c), (d), or (e) of section 1541 of 
this title on account of a child or the child disposes of covered 
resources for less than fair market value on or after the look-back 
date described in subparagraph (C)(i), the Secretary shall deny or 
discontinue payment of such increased pension for months during the 
period beginning on the date described in subparagraph (D) and equal to 
the number of months calculated as provided in subparagraph (E).
    ``(B)(i) For purposes of this paragraph, a covered resource is any 
resource that was a part of the corpus of the estate of the child that 
the Secretary considers that under all the circumstances, if the 
surviving spouse or the child had not disposed of such resource, it 
would be reasonable that the resource (or some portion of the resource) 
be consumed for the child's maintenance.
    ``(ii) For purposes of this paragraph, the Secretary may consider, 
in accordance with regulations the Secretary shall prescribe, a 
transfer of an asset (including a transfer of an asset to an annuity, 
trust, or other financial instrument or investment) a disposal of a 
covered resource for less than fair market value if such transfer 
reduces the amount in the corpus of the estate of the child that the 
Secretary considers, under all the circumstances, would be reasonable 
to be consumed for the child's maintenance.
    ``(C)(i) The look-back date described in this clause is a date that 
is 36 months before the date described in clause (ii).
    ``(ii) The date described in this clause is the date on which the 
surviving spouse applies for payment of increased pension under 
subsection (c), (d), or (e) of section 1541 of this title on account of 
a child or, if later, the date on which the surviving spouse (or the 
child) disposes of covered resources for less than fair market value.
    ``(D) The date described in this subparagraph is the first day of 
the first month in or after which covered resources were disposed of 
for less than fair market value and which does not occur in any other 
period of ineligibility under this paragraph.
    ``(E) The number of months calculated under this clause shall be 
equal to--
            ``(i) the total, cumulative uncompensated value of the 
        portion of covered resources so disposed of by surviving spouse 
        (or the child) on or after the look-back date described in 
        subparagraph (C)(i) that the Secretary determines would 
        reasonably have been consumed for the child's maintenance; 
        divided by
            ``(ii) the maximum amount of increased monthly pension that 
        is payable to a surviving spouse under subsection (c), (d), or 
        (e) of section 1541 of this title on account of a child,
rounded, in the case of any fraction, to the nearest whole number, but 
shall not in any case exceed 36 months.'';
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' before ``The Secretary''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2)(A) If a child otherwise eligible for payment of pension under 
section 1542 of this title or any person with whom such child is 
residing who is legally responsible for such child's support disposes 
of covered resources for less than fair market value on or after the 
look-back date described in subparagraph (C)(i), the Secretary shall 
deny or discontinue the payment of pension to such child under section 
1542 of this title for months during the period beginning on the date 
described in subparagraph (D) and equal to the number of months 
calculated as provided in subparagraph (E).
    ``(B)(i) For purposes of this paragraph, a covered resource is any 
resource that was a part of the corpus of the estate of the child or 
the corpus of the estate of any person with whom such child is residing 
who is legally responsible for such child's support that the Secretary 
considers that under all the circumstances, if the child or person had 
not disposed of such resource, it would be reasonable that the resource 
(or some portion of the resource) be consumed for the child's 
maintenance.
    ``(ii) For purposes of this paragraph, the Secretary may consider, 
in accordance with regulations the Secretary shall prescribe, a 
transfer of an asset (including a transfer of an asset to an annuity, 
trust, or other financial instrument or investment) a disposal of a 
covered resource for less than fair market value if such transfer 
reduces the amount in the corpus of the estate described in clause (i) 
that the Secretary considers, under all the circumstances, would be 
reasonable to be consumed for the child's maintenance.
    ``(C)(i) The look-back date described in this clause is a date that 
is 36 months before the date described in clause (ii).
    ``(ii) The date described in this clause is the date on which the 
child applies for pension under section 1542 of this title or, if 
later, the date on which the child (or person described in subparagraph 
(B)) disposes of covered resources for less than fair market value.
    ``(D) The date described in this clause is the first day of the 
first month in or after which covered resources were disposed of for 
less than fair market value and which does not occur in any other 
period of ineligibility under this paragraph.
    ``(E) The number of months calculated under this clause shall be 
equal to--
            ``(i) the total, cumulative uncompensated value of the 
        portion of covered resources so disposed of by the child (or 
        person described in subparagraph (B)) on or after the look-back 
        date described in subparagraph (C)(i) that the Secretary 
        determines would reasonably have been consumed for the child's 
        maintenance; divided by
            ``(ii) the maximum amount of monthly pension that is 
        payable to a child under section 1542 of this title,
rounded, in the case of any fraction, to the nearest whole number, but 
shall not in any case exceed 36 months.''; and
            (3) by adding at the end the following new subsections:
    ``(c)(1) The Secretary shall not deny or discontinue payment of 
pension under section 1541 or 1542 of this title or payment of 
increased pension under subsection (c), (d), or (e) of section 1541 of 
this title on account of a child by reason of the application of 
subsection (a)(2), (a)(4), or (b)(2) of this section to the disposal of 
resources by an individual to the extent that--
            ``(A) a satisfactory showing is made to the Secretary (in 
        accordance with regulations promulgated by the Secretary) that 
        all resources disposed of for less than fair market value have 
        been returned to the individual who disposed of the resources; 
        or
            ``(B) the Secretary determines, under procedures 
        established by the Secretary, that the denial or discontinuance 
        of payment would work an undue hardship as determined on the 
        basis of criteria established by the Secretary.
    ``(2) At the time a surviving spouse or child applies for pension 
under section 1541 or 1542 of this title or increased pension under 
subsection (c), (d), or (e) of section 1541 of this title on account of 
a child, and at such other times as the Secretary considers 
appropriate, the Secretary shall--
            ``(A) inform such surviving spouse or child of the 
        provisions of subsections (a)(2), (a)(4), and (b)(2), as 
        applicable, providing for a period of ineligibility for payment 
        of pension or increased pension under such sections for 
        individuals who make certain dispositions of resources for less 
        than fair market value; and
            ``(B) obtain from such surviving spouse or child 
        information which may be used in determining whether or not a 
        period of ineligibility for such payments would be required by 
        reason of such subsections.
    ``(d) Paragraphs (2) and (4) of subsection (a) and subsection 
(b)(2) shall not apply with respect to the disposal of resources or the 
transfer of an asset if such disposal or transfer is to a trust 
described in section 1917(d)(4) of the Social Security Act (42 U.S.C. 
1396p(d)(4)) that is established for the benefit of a child of the 
veteran or surviving spouse.''.
    (c) Effective Date.--Subsections (a)(2), (b)(2), and (c) of section 
1522 of title 38, United States Code, as added by subsection (a), and 
subsections (a)(2), (a)(4), (b)(2), and (c) of section 1543 of such 
title, as added by subsection (b), shall take effect on the date that 
is one year after the date of the enactment of this Act and shall apply 
with respect to payments of pension and increased pension applied for 
after such date and to payments of pension and increased pension for 
which eligibility is redetermined after such date, except that no 
reduction in pension shall be made under such subsections because of 
any disposal of covered resources made before such date.
    (d) Annual Reports.--
            (1) In general.--Not later than two years after the date of 
        the enactment of this Act and not less frequently than once 
        each year thereafter through 2018, the Secretary of Veterans 
        Affairs shall submit to the appropriate committees of Congress 
        a report on the administration of subsections (a)(2), (b)(2), 
        and (c) of section 1522 of title 38, United States Code, as 
        added by subsection (a), and subsections (a)(2), (a)(4), 
        (b)(2), and (c) of section 1543 of such title, as added by 
        subsection (b), during the most recent 12-month period.
            (2) Elements.--Each report submitted under paragraph (1) 
        shall include the following, for the period covered by the 
        report:
                    (A) The number of individuals who applied for 
                pension under chapter 15 of such title.
                    (B) The number of individuals who received pension 
                under such chapter.
                    (C) The number of individuals with respect to whom 
                the Secretary denied or discontinued payment of pension 
                under the subsections referred to in paragraph (1).
                    (D) A description of any trends identified by the 
                Secretary regarding pension payments that have occurred 
                as a result of the amendments made by this section.
                    (E) Such other information as the Secretary 
                considers appropriate.
            (3) Appropriate committees of congress defined.--In this 
        subsection, the term ``appropriate committees of Congress'' 
        means--
                    (A) the Committee on Veterans' Affairs and the 
                Select Committee on Aging of the Senate; and
                    (B) the Committee on Veterans' Affairs of the House 
                of Representatives.

SEC. 203. BIFURCATED PAYMENTS OF COMPENSATION BENEFITS UNDER LAWS 
              ADMINISTERED BY THE SECRETARY OF VETERANS AFFAIRS.

    (a) In General.--Subchapter III of chapter 51 of title 38, United 
States Code, is amended by adding at the end the following new section:
``Sec. 5127. Bifurcated payments of compensation benefits
    ``(a) In General.--During the eight-year period beginning on the 
date of the enactment of this section, in the case of a claim described 
in subsection (b), prior to adjudicating the claim, the Secretary shall 
make payments of monetary benefits to the claimant based on any 
disability for which the Secretary has made a decision. Upon the 
adjudication of the claim, the Secretary shall pay to the claimant any 
monetary benefits awarded to the claimant for the period of payment 
under section 5111 of this title less the amount of such benefits paid 
to the claimant under this section.
    ``(b) Claim Described.--A claim described in this subsection is a 
claim for disability compensation under chapter 11 of this title--
            ``(1) the adjudication of which requires the Secretary to 
        make decisions with respect to two or more disabilities; and
            ``(2) for which, before completing the adjudication of the 
        claim, the Secretary makes a decision with respect to a 
        disability that would result in the payment of monetary 
        benefits to the claimant upon the adjudication of the claim.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end of the items relating to 
such subchapter the following new item:

``5127. Bifurcated payments of compensation benefits.''.
    (c) Effective Date.--Section 5127 of title 38, United State Code, 
as added by subsection (a) shall take effect on the date that is one 
year after the date of the enactment of this Act.

SEC. 204. PENSION FOR CERTAIN VETERANS COVERED BY MEDICAID PLANS FOR 
              SERVICES FURNISHED BY NURSING FACILITIES.

    Section 5503(d)(7) of title 38, United States Code, is amended by 
striking ``November 30, 2016'' and inserting ``September 30, 2018''.

                        TITLE III--OTHER MATTERS

SEC. 301. REVIEW OF OPERATION OF CERTAIN SHIPS DURING THE VIETNAM ERA.

    (a) Review Required.--By not later than one year after the date of 
the enactment of this Act, the Secretary of Defense shall review the 
logs of each ship under the authority of the Secretary of the Navy that 
is known to have operated in the waters near Vietnam during the period 
beginning on January 9, 1962, and ending on May 7, 1975, to determine--
            (1) whether each such ship operated in the territorial 
        waters of the Republic of Vietnam during such period; and
            (2) for each such ship that so operated--
                    (A) the date or dates when the ship so operated; 
                and
                    (B) the distance from the shore of the location 
                where the ship operated that was the closest proximity 
                to shore.
    (b) Provision of Information to the Secretary of Veterans 
Affairs.--Upon a determination that any such ship so operated, the 
Secretary of Defense shall provide such determination, together with 
the information described in subsection (a)(2) about the ship, to the 
Secretary of Veterans Affairs.
    (c) Public Availability of Information.--The Secretary of Veterans 
Affairs shall make publicly available all unclassified information 
provided to the Secretary under subsection (b).

SEC. 302. METHODS FOR VALIDATING CERTAIN SERVICE CONSIDERED TO BE 
              ACTIVE SERVICE BY THE SECRETARY OF VETERANS AFFAIRS.

    (a) Findings.--Congress makes the following findings:
            (1) The Merchant Marine Act, 1936 established the United 
        States Maritime Commission, and stated as a matter of policy 
        that the United States should have a merchant marine that is 
        ``capable of serving as a naval and military auxiliary in time 
        of war or national emergency''.
            (2) The Social Security Act Amendments of 1939 (Public Law 
        76-379) expanded the definition of employment to include 
        service ``on or in connection with an American vessel under 
        contract of service which is entered into within the United 
        States or during the performance of which the vessel touches at 
        a port in the United States, if the employee is employed on and 
        in connection with such vessel''.
            (3) The Joint Resolution to repeal sections 2, 3, and 6 of 
        the Neutrality Act of 1939, and for other purposes (Public Law 
        77-294; 55 Stat. 764) repealed section 6 of the Neutrality Act 
        of 1939 (related to the arming of United States vessels) and 
        authorized the President during the national emergency to arm 
        or permit to arm any United States vessel.
            (4) On February 7, 1942, President Franklin D. Roosevelt, 
        through Executive Order Number 9054, established the War 
        Shipping Administration that was charged with building or 
        purchasing, and operating the civilian shipping vessels needed 
        for the war effort.
            (5) During World War II, United States merchant mariners 
        transported goods and materials through ``contested waters'' to 
        the various combat theaters.
            (6) At the conclusion of World War II, United States 
        merchant mariners were responsible for transporting several 
        million members of the United States Armed Forces back to the 
        United States.
            (7) The GI Bill Improvement Act of 1977 (Public Law 95-202) 
        provided that the Secretary of Defense could determine that 
        service for the Armed Forces by organized groups of civilians, 
        or contractors, be considered ``active service'' for benefits 
        administered by the Veterans Administration.
            (8) Department of Defense Directive 1000.20 directed that 
        the determination be made by the Secretary of the Air Force, 
        and established the Civilian/Military Service Review Board and 
        Advisory Panel.
            (9) In 1987, three merchant mariners along with the AFL-CIO 
        sued Edward C. Aldridge, Secretary of the Air Force, 
        challenging the denial of their application for veterans 
        status. In Schumacher v. Aldridge (665 F. Supp. 41 (D.D.C. 
        1987)), the Court determined that Secretary Aldridge had failed 
        to ``articulate clear and intelligible criteria for the 
        administration'' of the application approval process.
            (10) During World War II, women were repeatedly denied 
        issuance of official documentation affirming their merchant 
        marine seaman status by the War Shipping Administration.
            (11) Coast Guard Information Sheet #77 (April 1992) 
        identifies the following acceptable forms of documentation for 
        eligibility meeting the requirements set forth in the GI Bill 
        Improvement Act of 1977 (Public Law 95-202) and Veterans 
        Programs Enhancement Act of 1998 (Public Law 105-368):
                    (A) Certificate of shipping and discharge forms.
                    (B) Continuous discharge books (ship's deck or 
                engine logbooks).
                    (C) Company letters showing vessel names and dates 
                of voyages.
            (12) Coast Guard Commandant Order of March 20, 1944, 
        relieved masters of tugs, towboats, and seagoing barges of the 
        responsibility of submitting reports of seamen shipped or 
        discharged on forms, meaning certificates of shipping and 
        discharge forms are not available to all eligible individuals 
        seeking to document their eligibility.
            (13) Coast Guard Information Sheet #77 (April 1992) states 
        that ``deck logs were traditionally considered to be the 
        property of the owners of the ships. After World War II, 
        however, the deck and engine logbooks of vessels operated by 
        the War Shipping Administration were turned over to that agency 
        by the ship owners, and were destroyed during the 1970s'', 
        meaning that continuous discharge books are not available to 
        all eligible individuals seeking to document their eligibility.
            (14) Coast Guard Information Sheet #77 (April, 1992) states 
        ``some World War II period log books do not name ports visited 
        during the voyage due to wartime security restrictions'', 
        meaning that company letters showing vessel names and dates of 
        voyages are not available to all eligible individuals seeking 
        to document their eligibility.
    (b) Methods for Validating Certain Service Considered to Be Active 
Service by the Secretary of Veterans Affairs.--
            (1) In general.--For the purposes of verifying that an 
        individual performed service under honorable conditions that 
        satisfies the requirements of a coastwise merchant seaman who 
        is recognized pursuant to section 401 of the GI Bill 
        Improvement Act of 1977 (Public Law 95-202; 38 U.S.C. 106 note) 
        as having performed active duty service for the purposes 
        described in paragraph (3)(A), the Secretary of Homeland 
        Security shall accept the following:
                    (A) In the case of an individual who served on a 
                coastwise merchant vessel seeking such recognition for 
                whom no applicable Coast Guard shipping or discharge 
                form, ship logbook, merchant mariner's document or Z-
                card, or other official employment record is available, 
                the Secretary shall provide such recognition on the 
                basis of applicable Social Security Administration 
                records submitted for or by the individual, together 
                with validated testimony given by the individual or the 
                primary next of kin of the individual that the 
                individual performed such service during the period 
                beginning on December 7, 1941, and ending on December 
                31, 1946.
                    (B) In the case of an individual who served on a 
                coastwise merchant vessel seeking such recognition for 
                whom the applicable Coast Guard shipping or discharge 
                form, ship logbook, merchant mariner's document or Z-
                card, or other official employment record has been 
                destroyed or otherwise become unavailable by reason of 
                any action committed by a person responsible for the 
                control and maintenance of such form, logbook, or 
                record, the Secretary shall accept other official 
                documentation demonstrating that the individual 
                performed such service during period beginning on 
                December 7, 1941, and ending on December 31, 1946.
                    (C) For the purpose of determining whether to 
                recognize service allegedly performed during the period 
                beginning on December 7, 1941, and ending on December 
                31, 1946, the Secretary shall recognize masters of 
                seagoing vessels or other officers in command of 
                similarly organized groups as agents of the United 
                States who were authorized to document any individual 
                for purposes of hiring the individual to perform 
                service in the merchant marine or discharging an 
                individual from such service.
            (2) Treatment of other documentation.--Other documentation 
        accepted by the Secretary of Homeland Security pursuant to 
        paragraph (1)(B) shall satisfy all requirements for eligibility 
        of service during the period beginning on December 7, 1941, and 
        ending on December 31, 1946.
            (3) Benefits allowed.--
                    (A) Burial benefits eligibility.--Service of an 
                individual that is considered active duty pursuant to 
                paragraph (1) shall be considered as active duty 
                service with respect to providing burial benefits under 
                chapters 23 and 24 of title 38, United States Code, to 
                the individual.
                    (B) Medals, ribbons, and decorations.--An 
                individual whose service is recognized as active duty 
                pursuant to paragraph (1) may be awarded an appropriate 
                medal, ribbon, or other military decoration based on 
                such service.
                    (C) Status of veteran.--An individual whose service 
                is recognized as active duty pursuant to paragraph (1) 
                shall be honored as a veteran but shall not be entitled 
                by reason of such recognized service to any benefit 
                that is not described in this subsection.
            (4) Determination of coastwise merchant seaman.--The 
        Secretary of Homeland Security shall verify that an individual 
        performed service under honorable conditions that satisfies the 
        requirements of a coastwise merchant seaman pursuant to this 
        section without regard to the sex, age, or disability of the 
        individual during the period in which the individual served as 
        such a coastwise merchant seaman.
            (5) Definition of primary next of kin.--In this section, 
        the term ``primary next of kin'' with respect to an individual 
        seeking recognition for service under this section means the 
        closest living relative of the individual who was alive during 
        the period of such service.
            (6) Effective date.--This section shall take effect 90 days 
        after the date of the enactment of this Act.

SEC. 303. DESIGNATION OF AMERICAN WORLD WAR II CITIES.

    (a) In General.--The Secretary of Veterans Affairs shall designate 
at least one city in the United States each year as an ``American World 
War II City''.
    (b) Criteria for Designation.--After the designation made under 
subsection (c), the Secretary, in consultation with the Secretary of 
Defense, shall make each designation under subsection (a) based on the 
following criteria:
            (1) Contributions by a city to the war effort during World 
        War II, including those related to defense manufacturing, bond 
        drives, service in the Armed Forces, and the presence of 
        military facilities within the city.
            (2) Efforts by a city to preserve the history of the city's 
        contributions during World War II, including through the 
        establishment of preservation organizations or museums, 
        restoration of World War II facilities, and recognition of 
        World War II veterans.
    (c) First American World War II City.--The city of Wilmington, 
North Carolina, is designated as an ``American World War II City''.

SEC. 304. OBSERVANCE OF VETERANS DAY.

    (a) Two Minutes of Silence.--Chapter 1 of title 36, United States 
Code, is amended by adding at the end the following new section:
``Sec. 145. Veterans Day
    ``The President shall issue each year a proclamation calling on the 
people of the United States to observe two minutes of silence on 
Veterans Day in honor of the service and sacrifice of veterans 
throughout the history of the Nation, beginning at--
            ``(1) 3:11 p.m. Atlantic standard time;
            ``(2) 2:11 p.m. eastern standard time;
            ``(3) 1:11 p.m. central standard time;
            ``(4) 12:11 p.m. mountain standard time;
            ``(5) 11:11 a.m. Pacific standard time;
            ``(6) 10:11 a.m. Alaska standard time; and
            ``(7) 9:11 a.m. Hawaii-Aleutian standard time.''.
    (b) Clerical Amendment.--The table of sections for chapter 1 of 
title 36, United States Code, is amended by adding at the end the 
following new item:

``145. Veterans Day.''.

            Passed the House of Representatives October 28, 2013.

            Attest:

                                                                 Clerk.
113th CONGRESS

  1st Session

                               H. R. 2189

_______________________________________________________________________

                                 AN ACT

  To improve the processing of disability claims by the Department of 
               Veterans Affairs, and for other purposes.
```