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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3421 Enrolled Bill (ENR)]

        S.3421

                       One Hundred Ninth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
             the third day of January, two thousand and six

                                 An Act

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

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Veterans Benefits, 
Health Care, and Information Technology Act of 2006''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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

                TITLE I--ATTORNEY REPRESENTATION MATTERS

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

                        TITLE II--HEALTH MATTERS

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

                      TITLE III--EDUCATION MATTERS

Sec. 301. Expansion of eligibility for Survivors' and Dependents' 
          Educational Assistance program.
Sec. 302. Restoration of lost entitlement for individuals who 
          discontinue a program of education because of being ordered to 
          full-time National Guard duty.
Sec. 303. Exception for institutions offering Government-sponsored 
          nonaccredited courses to requirement of refunding unused 
          tuition.
Sec. 304. Extension of work-study allowance.
Sec. 305. Deadline and extension of requirement for report on 
          educational assistance program.
Sec. 306. Report on improvement in administration of educational 
          assistance benefits.
Sec. 307. Technical amendments relating to education laws.

        TITLE IV--NATIONAL CEMETERY AND MEMORIAL AFFAIRS MATTERS

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

               TITLE V--HOUSING AND SMALL BUSINESS MATTERS

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

                TITLE VI--EMPLOYMENT AND TRAINING MATTERS

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

                 TITLE VII--HOMELESS VETERANS ASSISTANCE

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

                    TITLE VIII--CONSTRUCTION MATTERS

             Subtitle A--Construction and Lease Authorities

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

                  Subtitle B--Facilities Administration

Sec. 811. Director of Construction and Facilities Management.
Sec. 812. Increase in threshold for major medical facility projects.
Sec. 813. Land conveyance, city of Fort Thomas, Kentucky.

          Subtitle C--Reports on Medical Facility Improvements

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

                 TITLE IX--INFORMATION SECURITY MATTERS

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

                         TITLE X--OTHER MATTERS

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

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

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of title 38, United States 
Code.

                TITLE I--ATTORNEY REPRESENTATION MATTERS

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

    (a) Qualifications and Standards of Conduct for Individuals 
Recognized as Agents or Attorneys.--
        (1) Additional qualifications and standards for agents and 
    attorneys generally.--Subsection (a) of section 5904 is amended--
            (A) by inserting ``Recognition.--(1)'' after ``(a)'';
            (B) by striking ``The Secretary may recognize'' and 
        inserting ``Except as provided in paragraph (4), the Secretary 
        may recognize'';
            (C) by striking the second sentence; and
            (D) by adding at the end the following new paragraphs:
    ``(2) The Secretary shall prescribe in regulations (consistent with 
the Model Rules of Professional Conduct of the American Bar 
Association) qualifications and standards of conduct for individuals 
recognized under this section, including a requirement that, as a 
condition of being so recognized, an individual must--
        ``(A) show that such individual is of good moral character and 
    in good repute, is qualified to render claimants valuable service, 
    and is otherwise competent to assist claimants in presenting 
    claims;
        ``(B) have such level of experience or specialized training as 
    the Secretary shall specify; and
        ``(C) certify to the Secretary that the individual has 
    satisfied any qualifications and standards prescribed by the 
    Secretary under this section.
    ``(3) The Secretary shall prescribe in regulations requirements 
that each agent or attorney recognized under this section provide 
annually to the Secretary information about any court, bar, or Federal 
or State agency to which such agent or attorney is admitted to practice 
or otherwise authorized to appear, any relevant identification number 
or numbers, and a certification by such agent or attorney that such 
agent or attorney is in good standing in every jurisdiction where the 
agent or attorney is admitted to practice or otherwise authorized to 
appear.
    ``(4) The Secretary may not recognize an individual as an agent or 
attorney under paragraph (1) if such individual has been suspended or 
disbarred by any court, bar, or Federal or State agency to which the 
individual was previously admitted to practice and has not been 
subsequently reinstated.
    ``(5) The Secretary may prescribe in regulations reasonable 
restrictions on the amount of fees that an agent or attorney may charge 
a claimant for services rendered in the preparation, presentation, and 
prosecution of a claim before the Department. A fee that does not 
exceed 20 percent of the past due amount of benefits awarded on a claim 
shall be presumed to be reasonable.
    ``(6)(A) The Secretary may charge and collect an assessment from an 
individual recognized as an agent or attorney under this section in any 
case in which the Secretary pays to the agent or attorney, from past-
due benefits owed to a claimant represented by the agent or attorney, 
an amount as a fee in accordance with a fee arrangement between the 
claimant and the agent or attorney.
    ``(B) The amount of an assessment under subparagraph (A) shall be 
equal to five percent of the amount of the fee required to be paid to 
the agent or attorney, except that the amount of such an assessment may 
not exceed $100.
    ``(C) The Secretary may collect an assessment under subparagraph 
(A) by offsetting the amount of the fee otherwise required to be paid 
to the agent or attorney from the past-due benefits owed to the 
claimant represented by the agent or attorney.
    ``(D) An agent or attorney who is charged an assessment under 
subparagraph (A) may not, directly or indirectly, request, receive, or 
obtain reimbursement for such assessment from the claimant represented 
by the agent or attorney.
    ``(E) Amounts collected under this paragraph shall be deposited in 
the account available for administrative expenses for veterans' 
benefits programs. Amounts so deposited shall be merged with amounts in 
such account and shall be available for the same purpose, and subject 
to the same conditions and limitations, as amounts otherwise in such 
account.''.
        (2) Suspension of recognized representatives of veterans 
    service organizations.--Section 5902(b) is amended--
            (A) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (B) by inserting ``(1)'' after ``(b)''; and
            (C) by adding at the end the following new paragraph:
    ``(2) An individual recognized under this section shall be subject 
to the provisions of section 5904(b) of this title on the same basis as 
an individual recognized under section 5904(a) of this title.''.
        (3) Suspension of individuals recognized for particular 
    claims.--Section 5903 is amended--
            (A) by inserting ``(a) In General.--'' before ``The 
        Secretary''; and
            (B) by adding at the end the following new subsection:
    ``(b) Suspension.--An individual recognized under this section 
shall be subject to the provisions of section 5904(b) of this title on 
the same basis as an individual recognized under section 5904(a) of 
this title.''.
    (b) Additional Bases for Suspension of Individuals.--Subsection (b) 
of section 5904 is amended--
        (1) by inserting ``Suspension of Agents and Attorneys.--'' 
    after ``(b)'';
        (2) in paragraph (4), by striking ``or'' at the end;
        (3) in paragraph (5), by striking the period and inserting a 
    semicolon; and
        (4) by adding at the end the following new paragraphs:
        ``(6) has presented to the Secretary a frivolous claim, issue, 
    or argument, involving conduct inconsistent with ethical standards 
    for the practice of law;
        ``(7) has been suspended or disbarred by any court or bar to 
    which such agent or attorney was previously admitted to practice, 
    or has been disqualified from participating in or appearing before 
    any Federal agency, and has not been subsequently reinstated;
        ``(8) has charged excessive or unreasonable fees, as determined 
    by the Secretary in accordance with subsection (c)(3)(A); or
        ``(9) has failed to comply with any other condition specified 
    in regulations prescribed by the Secretary for purposes of this 
    subsection.''.
    (c) Modification of Date for Commencement of Services Subject to 
Fees.--
        (1) Modification.--Effective as provided in subsection (h), 
    paragraph (1) of subsection (c) of such section is amended--
            (A) by striking ``the Board of Veterans' Appeals first 
        makes a final decision in'' and inserting ``a notice of 
        disagreement is filed with respect to'';
            (B) by striking the second sentence; and
            (C) in the third sentence, by inserting ``fees charged, 
        allowed, or paid for'' before ``services provided''.
        (2) Report.--Not later than 42 months after the date of the 
    enactment of this Act, the Secretary of Veterans Affairs shall 
    submit to Congress a report that sets forth an assessment of the 
    effects of allowing agents and attorneys recognized under section 
    5904 of title 38, United States Code, to charge a fee to a claimant 
    for services rendered in the preparation, presentation, and 
    prosecution of a claim before the Department of Veterans Affairs 
    after a notice of disagreement has been filed. Such report shall 
    include the recommendations of the Secretary with respect to agent 
    and attorney representation.
    (d) Modification of Requirements To File Attorney Fee Agreements.--
Effective as provided in subsection (h), paragraph (2) of subsection 
(c) of such section is amended--
        (1) by striking ``after the Board first makes a final decision 
    in the case'' and inserting ``after a notice of disagreement is 
    filed with respect to the case'';
        (2) by striking ``with the Board at such time as may be 
    specified by the Board'' and inserting ``with the Secretary 
    pursuant to regulations prescribed by the Secretary''; and
        (3) by striking the second and third sentences.
    (e) Attorney Fees.--Subsection (c) of such section is further 
amended--
        (1) in paragraph (1), by striking ``paragraph (3)'' and 
    inserting ``paragraph (4)''; and
        (2) by redesignating paragraph (3) as paragraph (4);
        (3) by inserting after paragraph (2) the following new 
    paragraph (3):
    ``(3)(A) The Secretary may, upon the Secretary's own motion or at 
the request of the claimant, review a fee agreement filed pursuant to 
paragraph (2) and may order a reduction in the fee called for in the 
agreement if the Secretary finds that the fee is excessive or 
unreasonable.
    ``(B) A finding or order of the Secretary under subparagraph (A) 
may be reviewed by the Board of Veterans' Appeals under section 7104 of 
this title.
    ``(C) If the Secretary under subsection (b) suspends or excludes 
from further practice before the Department any agent or attorney who 
collects or receives a fee in excess of the amount authorized under 
this section, the suspension shall continue until the agent or attorney 
makes full restitution to each claimant from whom the agent or attorney 
collected or received an excessive fee. If the agent or attorney makes 
such restitution, the Secretary may reinstate such agent or attorney 
under such rules as the Secretary may prescribe.''.
    (f) Technical and Conforming Amendments.--Subsection (d) of such 
section is amended--
        (1) by inserting ``Payment of Fees Out of Past-Due Benefits.--
    '' after ``(d)'';
        (2) by inserting ``agent or'' before ``attorney'' each place it 
    appears;
        (3) in paragraph (1), by striking ``of this subsection'' after 
    ``paragraph (2)'';
        (4) in paragraph (2)(B), by striking ``of this paragraph'' 
    after ``subparagraph (A)''; and
        (5) in paragraph (3)--
            (A) by striking ``attorneys' fee'' and inserting ``fee to 
        an agent or attorney''; and
            (B) by striking ``of this subsection'' after ``paragraph 
        (1)''.
    (g) Repeal of Penalty for Certain Acts.--Section 5905 is amended by 
striking ``(1)'' and all that follows through ``(2)''.
    (h) Effective Date.--The amendments made by subsections (c)(1) and 
(d) shall take effect on the date that is 180 days after the date of 
the enactment of this Act and shall apply with respect to services of 
agents and attorneys that are provided with respect to cases in which 
notices of disagreement are filed on or after that date.
    (i) Limitation on Collection of Fee Assessment.--No assessments on 
fees may be collected under paragraph (6) of section 5904(a) of title 
38, United States Code (as added by subsection (a)(1)(D) of this 
section), until the date on which the Secretary of Veterans Affairs 
prescribes the regulations required by the amendments made by this 
section.

                        TITLE II--HEALTH MATTERS

SEC. 201. ADDITIONAL MENTAL HEALTH PROVIDERS.

    (a) Appointments.--Section 7401(3) is amended by inserting after 
``social workers,'' the following: ``marriage and family therapists, 
licensed professional mental health counselors,''.
    (b) Qualifications.--Section 7402(b) is amended--
        (1) by redesignating paragraph (10) as paragraph (12); and
        (2) by inserting after paragraph (9) the following new 
    paragraphs:
    ``(10) Marriage and Family Therapist.--To be eligible to be 
appointed to a marriage and family therapist position, a person must--
        ``(A) hold a master's degree in marriage and family therapy, or 
    a comparable degree in mental health, from a college or university 
    approved by the Secretary; and
        ``(B) be licensed or certified to independently practice 
    marriage and family therapy in a State, except that the Secretary 
    may waive the requirement of licensure or certification for an 
    individual marriage and family therapist for a reasonable period of 
    time recommended by the Under Secretary for Health.
    ``(11) Licensed Professional Mental Health Counselor.--To be 
eligible to be appointed to a licensed professional mental health 
counselor position, a person must--
        ``(A) hold a master's degree in mental health counseling, or a 
    related field, from a college or university approved by the 
    Secretary; and
        ``(B) be licensed or certified to independently practice mental 
    health counseling.''.
    (c) Report on Marriage and Family Therapy Workload.--
        (1) In general.--Not later than 90 days after the date of the 
    enactment of this Act, the Under Secretary for Health of the 
    Department of Veterans Affairs shall submit to the Committee on 
    Veterans' Affairs of the Senate and the Committee on Veterans' 
    Affairs of the House of Representatives a report on the provision 
    of treatment for post-traumatic stress disorder by marriage and 
    family therapists employed by the Department of Veterans Affairs.
        (2) Contents.--The report submitted under paragraph (1) shall 
    include the following:
            (A) The actual and projected workloads in facilities of the 
        Veterans Readjustment Counseling Service and the Veterans 
        Health Administration for the provision of marriage and family 
        counseling for veterans diagnosed with, or otherwise in need of 
        treatment for, post-traumatic stress disorder.
            (B) The resources available and needed to support the 
        projected workload described in subparagraph (A).
            (C) An assessment by the Under Secretary for Health of the 
        effectiveness of treatment for post-traumatic stress disorder 
        that is provided by marriage and family therapists.
            (D) Recommendations, if any, for improvements in the 
        provision of such treatment by such therapists.

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

    Section 7404 is amended--
        (1) in subsection (d), by striking ``subchapter III and in'' 
    and inserting ``subsection (e), subchapter III, and''; and
        (2) by adding at the end the following new subsection:
    ``(e) The position of Chief Nursing Officer, Office of Nursing 
Services, shall be exempt from the provisions of section 7451 of this 
title and shall be paid at a rate determined by the Secretary, not to 
exceed the maximum rate established for the Senior Executive Service 
under section 5382 of title 5.''.

SEC. 203. IMPROVEMENT AND EXPANSION OF MENTAL HEALTH SERVICES.

    (a) Required Capacity for Community-Based Outpatient Clinics.--
        (1) In general.--The Secretary of Veterans Affairs shall ensure 
    that each community-based outpatient clinic of the Department of 
    Veterans Affairs has the capacity to provide, or monitor the 
    provision of, mental health services to enrolled veterans who, as 
    determined by the Secretary, are in need of such services.
        (2) Settings.--In carrying out paragraph (1), the Secretary 
    shall ensure that mental health services are provided through--
            (A) a community-based outpatient clinic of the Department 
        by an employee of the Department;
            (B) referral to another facility of the Department;
            (C) contract with an appropriate mental health professional 
        in the community; or
            (D) telemental health services.
    (b) Clinical Training and Protocols.--
        (1) Collaboration.--The National Center on Post-Traumatic 
    Stress Disorder of the Department of Veterans Affairs shall 
    collaborate with the Secretary of Defense--
            (A) to enhance the clinical skills of military clinicians 
        on matters relating to post-traumatic stress disorder through 
        training, treatment protocols, web-based interventions, and the 
        development of evidence-based interventions; and
            (B) to promote pre-deployment resilience and post-
        deployment readjustment among members of the Armed Forces 
        serving in Operation Iraqi Freedom and Operation Enduring 
        Freedom.
        (2) Authorization of appropriations.--There are authorized to 
    be appropriated for the Department of Veterans Affairs for fiscal 
    year 2007 $2,000,000 to carry out this subsection.
    (c) Mental Health Outreach.--The Secretary of Veterans Affairs 
shall--
        (1) develop additional educational materials on post-traumatic 
    stress disorder; and
        (2) undertake additional efforts to educate veterans about 
    post-traumatic stress disorder.
    (d) Review of PTSD Clinical Guidelines.--The Secretary of Veterans 
Affairs shall--
        (1) review the clinical guidelines of the Department of 
    Veterans Affairs on post-traumatic stress disorder and all 
    appropriate protocols related to post-traumatic stress disorder;
        (2) revise such guidelines and protocols as the Secretary 
    considers appropriate to ensure that clinicians are able to 
    effectively distinguish between diagnoses with similar symptoms 
    that may manifest as post-traumatic stress disorder, including 
    traumatic brain injury; and
        (3) develop performance measures for the treatment of post-
    traumatic stress disorder among veterans.

SEC. 204. DISCLOSURE OF MEDICAL RECORDS.

    (a) Limited Exception to Confidentiality of Medical Records.--
Section 5701 is amended by adding at the end the following new 
subsection:
    ``(k)(1)(A) Under regulations that the Secretary shall prescribe, 
the Secretary may disclose the name and address of any individual 
described in subparagraph (C) to an entity described in subparagraph 
(B) in order to facilitate the determination by such entity whether the 
individual is, or after death will be, a suitable organ, tissue, or eye 
donor if--
        ``(i) the individual is near death (as determined by the 
    Secretary) or is deceased; and
        ``(ii) the disclosure is permitted under regulations 
    promulgated pursuant to section 264 of the Health Insurance 
    Portability and Accountability Act of 1996 (42 U.S.C. 1320d-2 
    note).
    ``(B) An entity described in this subparagraph is--
        ``(i) an organ procurement organization, including eye and 
    tissue banks; or
        ``(ii) an entity that the Secretary has determined--
            ``(I) is substantially similar in function, 
        professionalism, and reliability to an organ procurement 
        organization; and
            ``(II) should be treated for purposes of this subsection in 
        the same manner as an organ procurement organization.
    ``(C) An individual described in this subparagraph is--
        ``(i) a veteran; or
        ``(ii) a dependent of veteran.
    ``(2) In this subsection, the term `organ procurement organization' 
has the meaning given the term `qualified organ procurement 
organization' in section 371(b) of the Public Health Service Act (42 
U.S.C. 273(b)).''.
    (b) Disclosures From Certain Medical Records.--Section 7332(b)(2) 
is amended by adding at the end the following new subparagraph:
        ``(E) To an entity described in paragraph (1)(B) of section 
    5701(k) of this title, but only to the extent authorized by such 
    section.''.
    (c) Deadline for Prescribing Regulations.--The Secretary of 
Veterans Affairs shall prescribe regulations under subsection (k) of 
section 5701 of title 38, United States Code, as added by subsection 
(a), not later than 180 days after the date of the enactment of this 
Act.

SEC. 205. EXPANSION OF TELEHEALTH SERVICES.

    (a) In General.--The Secretary of Veterans Affairs shall increase 
the number of facilities of the Readjustment Counseling Service that 
are capable of providing health services and counseling through 
telehealth linkages with facilities of the Veterans Health 
Administration.
    (b) Plan.--Not later than July 1, 2007, the Secretary shall submit 
to the Committee on Veterans' Affairs of the Senate and the Committee 
on Veterans' Affairs of the House of Representatives a plan to 
implement the requirement in subsection (a). The plan shall specify 
which facilities of the Readjustment Counseling Service will have the 
capabilities described in subsection (a) as of the end of each of 
fiscal years 2007, 2008, and 2009.

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

    (a) Publication.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall publish 
a strategic plan for the provision of long-term care by the Department 
of Veterans Affairs.
    (b) Policies and Strategies.--The plan published under subsection 
(a) shall contain policies and strategies for--
        (1) the delivery of care in domiciliaries, residential 
    treatment facilities, and nursing homes and for seriously mentally 
    ill veterans;
        (2) maximizing the use of State veterans homes;
        (3) locating domiciliary units as close to patient populations 
    as feasible; and
        (4) identifying freestanding nursing homes as an acceptable 
    care model.
    (c) Data.--The plan published under subsection (a) shall include 
data on--
        (1) the provision of care of catastrophically disabled 
    veterans; and
        (2) the geographic distribution of catastrophically disabled 
    veterans.
    (d) Noninstitutional Long-Term Care Options.--The plan published 
under subsection (a) shall address the spectrum of noninstitutional 
long-term care options, including each of the following:
        (1) Respite care.
        (2) Home-based primary care.
        (3) Geriatric evaluation.
        (4) Adult day health care.
        (5) Skilled home health care.
        (6) Community residential care.
    (e) Additional Matters To Be Included.--The plan published under 
subsection (a) shall provide--
        (1) cost and quality comparison analyses of all the different 
    levels of long-term care for veterans;
        (2) detailed information about geographic distribution of 
    services and gaps in care; and
        (3) specific plans for working with Medicare, Medicaid, and 
    private insurance companies to expand the availability of such 
    care.

SEC. 207. BLIND REHABILITATION OUTPATIENT SPECIALISTS.

    (a) Findings.--Congress makes the following findings:
        (1) There are approximately 135,000 blind veterans throughout 
    the United States, including approximately 35,000 who are enrolled 
    with the Department of Veterans Affairs. An aging veteran 
    population and injuries incurred in Operation Iraqi Freedom and 
    Operation Enduring Freedom are increasing the number of blind 
    veterans.
        (2) Since 1996, when the Department of Veterans Affairs hired 
    its first 14 blind rehabilitation outpatient specialists (referred 
    to in this section as ``Specialists''), Specialists have been a 
    critical part of the continuum of care for blind and visually 
    impaired veterans.
        (3) The Department of Veterans Affairs operates 10 residential 
    blind rehabilitation centers that are considered among the best in 
    the world. These centers have had long waiting lists, with as many 
    as 1,500 blind veterans waiting for openings in 2004.
        (4) Specialists provide--
            (A) critically needed services to veterans who are unable 
        to attend residential centers or are waiting to enter a 
        residential center program;
            (B) a range of services for blind veterans, including 
        training with living skills, mobility, and adaptation of manual 
        skills; and
            (C) pre-admission screening and follow-up care for blind 
        rehabilitation centers.
        (5) There are not enough Specialist positions to meet the 
    increased numbers and needs of blind veterans.
    (b) Establishment of Additional Specialist Positions.--Not later 
than 30 months after the date of the enactment of this Act, the 
Secretary of Veterans Affairs shall establish an additional Specialist 
position at not fewer than 35 additional facilities of the Department 
of Veterans Affairs.
    (c) Selection of Facilities.--In identifying the most appropriate 
facilities to receive a Specialist position under this section, the 
Secretary shall--
        (1) give priority to facilities with large numbers of enrolled 
    legally blind veterans;
        (2) ensure that each facility does not have such a position; 
    and
        (3) ensure that each facility is in need of the services of a 
    Specialist.
    (d) Coordination.--The Secretary shall coordinate the provision of 
blind rehabilitation services for veterans with services for the care 
of the visually impaired offered by State and local agencies, 
especially to the extent to which such State and local agencies can 
provide necessary services to blind veterans in settings located closer 
to the residences of such veterans at similar quality and cost to the 
veteran.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated for the Department of Veterans Affairs to carry out this 
section $3,500,000 for each of fiscal years 2007 through 2012.

SEC. 208. EXTENSION OF CERTAIN COMPLIANCE REPORTS.

    (a) Management of Health Care.--Section 1706(b)(5)(A) is amended by 
striking ``2004'' and inserting ``2008''.
    (b) Advisory Committee on Women Veterans.--Section 542(c)(1) is 
amended by striking ``2004'' and inserting ``2008''.

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

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

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

    ``(a) Establishment of Centers.--(1) The Secretary, upon the 
recommendation of the Under Secretary for Health, shall designate not 
less than six Department health-care facilities as the locations for 
centers of Parkinson's Disease research, education, and clinical 
activities.
    ``(2) Subject to the availability of appropriations for such 
purpose, the Secretary shall establish and operate centers of 
Parkinson's Disease research, education, and clinical activities 
centers at the locations designated pursuant to paragraph (1).
    ``(b) Criteria for Designation of Facilities.--(1) In designating 
Department health-care facilities for centers under subsection (a), the 
Secretary, upon the recommendation of the Under Secretary for Health, 
shall assure appropriate geographic distribution of such facilities.
    ``(2) Except as provided in paragraph (3), the Secretary shall 
designate as the location for a center of Parkinson's Disease research, 
education, and clinical activities pursuant to subsection (a)(1) each 
Department health-care facility that as of January 1, 2005, was 
operating a Parkinson's Disease research, education, and clinical 
center.
    ``(3) The Secretary may not under subsection (a) designate a 
facility described in paragraph (2) if (on the recommendation of the 
Under Secretary for Health) the Secretary determines that such 
facility--
        ``(A) does not meet the requirements of subsection (c); or
        ``(B) has not demonstrated--
            ``(i) effectiveness in carrying out the established 
        purposes of such center; or
            ``(ii) the potential to carry out such purposes effectively 
        in the reasonably foreseeable future.
    ``(c) Requirements for Designation.--(1) The Secretary may not 
designate a Department health-care facility as a location for a center 
under subsection (a) unless the peer review panel established under 
subsection (d) has determined under that subsection that the proposal 
submitted by such facility as a location for a new center under 
subsection (a) is among those proposals that meet the highest 
competitive standards of scientific and clinical merit.
    ``(2) The Secretary may not designate a Department health-care 
facility as a location for a center under subsection (a) unless the 
Secretary (upon the recommendation of the Under Secretary for Health) 
determines that the facility has (or may reasonably be anticipated to 
develop) each of the following:
        ``(A) An arrangement with an accredited medical school that 
    provides education and training in neurology and with which the 
    Department health-care facility is affiliated under which residents 
    receive education and training in innovative diagnosis and 
    treatment of chronic neurodegenerative diseases and movement 
    disorders, including Parkinson's Disease.
        ``(B) The ability to attract the participation of scientists 
    who are capable of ingenuity and creativity in health-care research 
    efforts.
        ``(C) An advisory committee composed of veterans and 
    appropriate health-care and research representatives of the 
    Department health-care facility and of the affiliated school or 
    schools to advise the directors of such facility and such center on 
    policy matters pertaining to the activities of the center during 
    the period of the operation of such center.
        ``(D) The capability to conduct effectively evaluations of the 
    activities of such center.
        ``(E) The capability to coordinate (as part of an integrated 
    national system) education, clinical, and research activities 
    within all facilities with such centers.
        ``(F) The capability to jointly develop a consortium of 
    providers with interest in treating neurodegenerative diseases, 
    including Parkinson's Disease and other movement disorders, at 
    facilities without centers established under subsection (a) in 
    order to ensure better access to state-of-the-art diagnosis, care, 
    and education for neurodegenerative disorders throughout the 
    health-care system of the Department.
        ``(G) The capability to develop a national repository in the 
    health-care system of the Department for the collection of data on 
    health services delivered to veterans seeking care for 
    neurodegenerative diseases, including Parkinson's Disease, and 
    other movement disorders.
    ``(d) Peer Review Panel.--(1) The Under Secretary for Health shall 
establish a panel to assess the scientific and clinical merit of 
proposals that are submitted to the Secretary for the establishment of 
centers under this section.
    ``(2)(A) The membership of the panel shall consist of experts in 
neurodegenerative diseases, including Parkinson's Disease and other 
movement disorders.
    ``(B) Members of the panel shall serve for a period of no longer 
than two years, except as specified in subparagraph (C).
    ``(C) Of the members first appointed to the panel, one half shall 
be appointed for a period of three years and one half shall be 
appointed for a period of two years, as designated by the Under 
Secretary at the time of appointment.
    ``(3) The panel shall review each proposal submitted to the panel 
by the Under Secretary and shall submit its views on the relative 
scientific and clinical merit of each such proposal to the Under 
Secretary.
    ``(4) The panel shall not be subject to the Federal Advisory 
Committee Act.
    ``(e) Priority of Funding.--Before providing funds for the 
operation of a center designated under subsection (a) at a Department 
health-care facility other than at a facility designated pursuant to 
subsection (b)(2), the Secretary shall ensure that each Parkinson's 
Disease center at a facility designated pursuant to subsection (b)(2) 
is receiving adequate funding to enable that center to function 
effectively in the areas of Parkinson's Disease research, education, 
and clinical activities.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for the support of the 
research and education activities of the centers established pursuant 
to subsection (a). The Under Secretary for Health shall allocate to 
such centers from other funds appropriated generally for the Department 
medical services account and medical and prosthetics research account, 
as appropriate, such amounts as the Under Secretary for Health 
determines appropriate.
    ``(g) Award Competitions.--Activities of clinical and scientific 
investigation at each center established under subsection (a) shall be 
eligible to compete for the award of funding from funds appropriated 
for the Department medical and prosthetics research account. Such 
activities shall receive priority in the award of funding from such 
account insofar as funds are awarded to projects for research in 
Parkinson's Disease and other movement disorders.

``Sec. 7330. Multiple sclerosis centers of excellence

    ``(a) Establishment of Centers.--(1) The Secretary, upon the 
recommendation of the Under Secretary for Health, shall designate not 
less than two Department health-care facilities as the locations for 
multiple sclerosis centers of excellence.
    ``(2) Subject to the availability of appropriations for such 
purpose, the Secretary shall establish and operate multiple sclerosis 
centers of excellence at the locations designated pursuant to paragraph 
(1).
    ``(b) Criteria for Designation of Facilities.--(1) In designating 
Department health-care facilities for centers under subsection (a), the 
Secretary, upon the recommendation of the Under Secretary for Health, 
shall assure appropriate geographic distribution of such facilities.
    ``(2) Except as provided in paragraph (3), the Secretary shall 
designate as the location for a center pursuant to subsection (a)(1) 
each Department health-care facility that as of January 1, 2005, was 
operating a multiple sclerosis center of excellence.
    ``(3) The Secretary may not under subsection (a) designate a 
facility described in paragraph (2) if (on the recommendation of the 
Under Secretary for Health) the Secretary determines that such 
facility--
        ``(A) does not meet the requirements of subsection (c); or
        ``(B) has not demonstrated--
            ``(i) effectiveness in carrying out the established 
        purposes of such center; or
            ``(ii) the potential to carry out such purposes effectively 
        in the reasonably foreseeable future.
    ``(c) Requirements for Designation.--(1) The Secretary may not 
designate a Department health-care facility as a location for a center 
under subsection (a) unless the peer review panel established under 
subsection (d) has determined under that subsection that the proposal 
submitted by such facility as a location for a new center under 
subsection (a) is among those proposals that meet the highest 
competitive standards of scientific and clinical merit.
    ``(2) The Secretary may not designate a Department health-care 
facility as a location for a center under subsection (a) unless the 
Secretary (upon the recommendation of the Under Secretary for Health) 
determines that the facility has (or may reasonably be anticipated to 
develop) each of the following:
        ``(A) An arrangement with an accredited medical school that 
    provides education and training in neurology and with which the 
    Department health-care facility is affiliated under which residents 
    receive education and training in innovative diagnosis and 
    treatment of autoimmune diseases affecting the central nervous 
    system, including multiple sclerosis.
        ``(B) The ability to attract the participation of scientists 
    who are capable of ingenuity and creativity in health-care research 
    efforts.
        ``(C) An advisory committee composed of veterans and 
    appropriate health-care and research representatives of the 
    Department health-care facility and of the affiliated school or 
    schools to advise the directors of such facility and such center on 
    policy matters pertaining to the activities of the center during 
    the period of the operation of such center.
        ``(D) The capability to conduct effectively evaluations of the 
    activities of such center.
        ``(E) The capability to coordinate (as part of an integrated 
    national system) education, clinical, and research activities 
    within all facilities with such centers.
        ``(F) The capability to jointly develop a consortium of 
    providers with interest in treating multiple sclerosis at 
    facilities without such centers in order to ensure better access to 
    state-of-the-art diagnosis, care, and education for autoimmune 
    disease affecting the central nervous system throughout the health-
    care system of the Department.
        ``(G) The capability to develop a national repository in the 
    health-care system of the Department for the collection of data on 
    health services delivered to veterans seeking care for autoimmune 
    disease affecting the central nervous system.
    ``(d) Peer Review Panel.--(1) The Under Secretary for Health shall 
establish a panel to assess the scientific and clinical merit of 
proposals that are submitted to the Secretary for the establishment of 
centers under this section.
    ``(2)(A) The membership of the panel shall consist of experts in 
autoimmune disease affecting the central nervous system.
    ``(B) Members of the panel shall serve for a period of no longer 
than two years, except as specified in subparagraph (C).
    ``(C) Of the members first appointed to the panel, one half shall 
be appointed for a period of three years and one half shall be 
appointed for a period of two years, as designated by the Under 
Secretary at the time of appointment.
    ``(3) The panel shall review each proposal submitted to the panel 
by the Under Secretary and shall submit its views on the relative 
scientific and clinical merit of each such proposal to the Under 
Secretary.
    ``(4) The panel shall not be subject to the Federal Advisory 
Committee Act.
    ``(e) Priority of Funding.--Before providing funds for the 
operation of a center designated under subsection (a) at a Department 
health-care facility other than at a facility designated pursuant to 
subsection (b)(2), the Secretary shall ensure that each multiple 
sclerosis center at a facility designated pursuant to subsection (b)(2) 
is receiving adequate funding to enable that center to function 
effectively in the areas of multiple sclerosis research, education, and 
clinical activities.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for the support of the 
research and education activities of the centers established pursuant 
to subsection (a). The Under Secretary for Health shall allocate to 
such centers from other funds appropriated generally for the Department 
medical services account and medical and prosthetics research account, 
as appropriate, such amounts as the Under Secretary for Health 
determines appropriate.
    ``(g) Award Competitions.--Activities of clinical and scientific 
investigation at each center established under subsection (a) shall be 
eligible to compete for the award of funding from funds appropriated 
for the Department medical and prosthetics research account. Such 
activities shall receive priority in the award of funding from such 
account insofar as funds are awarded to projects for research in 
multiple sclerosis and other neurodegenerative disorders.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by inserting after the item relating to 
    section 7328 the following new items:

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

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

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

    (a) Under Secretary for Health.--
        (1) In general.--Section 305 is amended by striking subsection 
    (c).
        (2) Conforming amendment.--Subsection (d) of such section is 
    redesignated as subsection (c).
    (b) Under Secretary for Benefits.--
        (1) In general.--Section 306 is amended by striking subsection 
    (c).
        (2) Conforming amendment.--Subsection (d) of such section is 
    redesignated as subsection (c).

SEC. 211. MODIFICATIONS TO STATE HOME AUTHORITIES.

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

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

    ``(a)(1) The Secretary shall pay each State home for nursing home 
care at the rate determined under paragraph (2), in any case in which 
such care is provided to any veteran as follows:
        ``(A) Any veteran in need of such care for a service-connected 
    disability.
        ``(B) Any veteran who--
            ``(i) has a service-connected disability rated at 70 
        percent or more; and
            ``(ii) is in need of such care.
    ``(2) The rate determined under this paragraph with respect to a 
State home is the lesser of--
        ``(A) the applicable or prevailing rate payable in the 
    geographic area in which the State home is located, as determined 
    by the Secretary, for nursing home care furnished in a non-
    Department nursing home (as that term is defined in section 
    1720(e)(2) of this title); or
        ``(B) a rate not to exceed the daily cost of care, as 
    determined by the Secretary, following a report to the Secretary by 
    the director of the State home.
    ``(3) Payment by the Secretary under paragraph (1) to a State home 
for nursing home care provided to a veteran described in that paragraph 
constitutes payment in full to the State home for such care furnished 
to that veteran.''.
        (2) Provision of prescription medicines.--Such section, as so 
    added, is further amended by adding at the end the following new 
    subsection:
    ``(b) The Secretary shall furnish such drugs and medicines as may 
be ordered on prescription of a duly licensed physician as specific 
therapy in the treatment of illness or injury to any veteran as 
follows:
        ``(1) Any veteran who--
            ``(A) is not being provided nursing home care for which 
        payment is payable under subsection (a); and
            ``(B) is in need of such drugs and medicines for a service-
        connected disability.
        ``(2) Any veteran who--
            ``(A) has a service-connected disability rated at 50 
        percent or more;
            ``(B) is not being provided nursing home care for which 
        payment is payable under subsection (a); and
            ``(C) is in need of such drugs and medicines.''.
        (3) Conforming amendments.--
            (A) Criteria for payment.--Section 1741(a)(1) is amended by 
        striking ``The'' and inserting ``Except as provided in section 
        1745 of this title, the''.
            (B) Eligibility for nursing home care.--Section 1710(a)(4) 
        is amended--
                (i) by striking ``and'' before ``the requirement in 
            section 1710B of this title''; and
                (ii) by inserting ``, and the requirement in section 
            1745 of this title to provide nursing home care and 
            prescription medicines to veterans with service-connected 
            disabilities in State homes'' after ``a program of extended 
            care services''.
        (4) Clerical amendment.--The table of sections at the beginning 
    of chapter 17 is amended by inserting after the item relating to 
    section 1744 the following new item:

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

        (5) Effective date.--The amendments made by this subsection 
    shall take effect 90 days after the date of the enactment of this 
    Act.
    (b) Identification of Veterans in State Homes.--Such chapter is 
further amended--
        (1) in section 1745, as added by subsection (a)(1) of this 
    section, by adding at the end the following new subsection:
    ``(c) Any State home that requests payment or reimbursement for 
services provided to a veteran under this section shall provide to the 
Secretary such information as the Secretary considers necessary to 
identify each individual veteran eligible for payment under such 
section.''; and
        (2) in section 1741, by adding at the end the following new 
    subsection:
    ``(f) Any State home that requests payment or reimbursement for 
services provided to a veteran under this section shall provide to the 
Secretary such information as the Secretary considers necessary to 
identify each individual veteran eligible for payment under such 
section.''.
    (c) Authority To Treat Certain Health Facilities as State Homes.--
        (1) Authority.--Subchapter III of chapter 81 is amended by 
    adding at the end the following new section:

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

    ``(a) The Secretary may treat a health facility (or certain beds in 
a health facility) as a State home for purposes of subchapter V of 
chapter 17 of this title if the following requirements are met:
        ``(1) The facility (or certain beds in such facility) meets the 
    standards for the provision of nursing home care that are 
    applicable to State homes, as prescribed by the Secretary under 
    section 8134(b) of this title, and such other standards relating to 
    the facility (or certain beds in such facility) as the Secretary 
    may require.
        ``(2) The facility (or certain beds in such facility) is 
    licensed or certified by the appropriate State and local agencies 
    charged with the responsibility of licensing or otherwise 
    regulating or inspecting State home facilities.
        ``(3) The State demonstrates in an application to the Secretary 
    that, but for the treatment of a facility (or certain beds in such 
    facility), as a State home under this subsection, a substantial 
    number of veterans residing in the geographic area in which the 
    facility is located who require nursing home care will not have 
    access to such care.
        ``(4) The Secretary determines that the treatment of the 
    facility (or certain beds in such facility) as a State home best 
    meets the needs of veterans for nursing home care in the geographic 
    area in which the facility is located.
        ``(5) The Secretary approves the application submitted by the 
    State with respect to the facility (or certain beds in such 
    facility).
    ``(b) The Secretary may not treat a health facility (or certain 
beds in a health facility) as a State home under subsection (a) if the 
Secretary determines that such treatment would increase the number of 
beds allocated to the State in excess of the limit on the number of 
beds provided for by regulations prescribed under section 8134(a) of 
this title.
    ``(c) The number of beds occupied by veterans in a health facility 
for which payment may be made under subchapter V of chapter 17 of this 
title by reason of subsection (a) shall not exceed--
        ``(1) 100 beds in the aggregate for all States; and
        ``(2) in the case of any State, the difference between--
            ``(A) the number of veterans authorized to be in beds in 
        State homes in such State under regulations prescribed under 
        section 8134(a) of this title; and
            ``(B) the number of veterans actually in beds in State 
        homes (other than facilities or certain beds treated as State 
        homes under subsection (a)) in such State under regulations 
        prescribed under such section.
    ``(d) The number of beds in a health facility in a State that has 
been treated as a State home under subsection (a) shall be taken into 
account in determining the unmet need for beds for State homes for the 
State under section 8134(d)(1) of this title.
    ``(e) The Secretary may not treat any new health facilities (or any 
new certain beds in a health facility) as a State home under subsection 
(a) after September 30, 2009.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by inserting after the item relating to 
    section 8137 the following new item:

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

SEC. 212. OFFICE OF RURAL HEALTH.

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

``Sec. 7308. Office of Rural Health

    ``(a) Establishment.--There is established in the Department within 
the Office of the Under Secretary for Health an office to be known as 
the `Office of Rural Health' (in this section referred to as the 
`Office').
    ``(b) Head.--The Director of the Office of Rural Health shall be 
the head of the Office. The Director of the Office of Rural Health 
shall be appointed by the Under Secretary of Health from among 
individuals qualified to perform the duties of the position.
    ``(c) Functions.--The functions of the Office are as follows:
        ``(1) In cooperation with the medical, rehabilitation, health 
    services, and cooperative studies research programs in the Office 
    of Policy and the Office of Research and Development of the 
    Veterans Health Administration, to assist the Under Secretary for 
    Health in conducting, coordinating, promoting, and disseminating 
    research into issues affecting veterans living in rural areas.
        ``(2) To work with all personnel and offices of the Department 
    of Veterans Affairs to develop, refine, and promulgate policies, 
    best practices, lessons learned, and innovative and successful 
    programs to improve care and services for veterans who reside in 
    rural areas of the United States.
        ``(3) To designate in each Veterans Integrated Service Network 
    (VISN) an individual who shall consult on and coordinate the 
    discharge in such Network of programs and activities of the Office 
    for veterans who reside in rural areas of the United States.
        ``(4) To perform such other functions and duties as the 
    Secretary or the Under Secretary for Health considers 
    appropriate.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by inserting after the item relating to 
    section 7307 the following new item:

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

    (b) Assessment of Fee-Basis Health-Care Program.--The Director of 
the Office of Rural Health shall conduct an assessment of the effects 
of the implementation of the fee-basis health-care program of the 
Veterans Health Administration on the delivery of health-care services 
to veterans who reside in rural areas of the United States. The 
assessment shall be conducted in consultation with the individuals 
designated under subsection (c)(3) of section 7308 of title 38, United 
States Code, as added by subsection (a). In conducting the assessment, 
the Director shall--
        (1) identify various mechanisms for expanding the program in 
    order to enhance and improve health-care services for such veterans 
    and determine the feasibility and advisability of implementing such 
    mechanisms; and
        (2) for each mechanism determined under paragraph (1) to be 
    feasible and advisable to implement, make recommendations to the 
    Under Secretary for Health on the implementation of such mechanism.
    (c) Plan To Improve Access and Quality of Care.--Not later than 
September 30, 2007, the Director of the Office of Rural Health shall 
develop a plan to improve the access and quality of care for enrolled 
veterans in rural areas. The plan shall include--
        (1) measures for meeting the long term care needs of rural 
    veterans; and
        (2) measures for meeting the mental health needs of veterans 
    residing in rural areas.
    (d) Report on Community-Based Outpatient Clinics and Access Points 
Identified in CARES May 2004 Decision Document.-- Not later than March 
30, 2007, the Secretary of Veterans Affairs shall submit to the 
Committee on Veterans' Affairs of the Senate and the Committee on 
Veterans' Affairs of the House of Representatives a report that--
        (1) identifies each of the community-based outpatient clinics 
    and access points identified in the May 2004 Decision Document of 
    Capital Asset Realignment for Enhanced Services (CARES) that have 
    been opened; and
        (2) identifies each of the clinics and access points identified 
    in such report that would be opened in fiscal year 2007 or 2008 if 
    funding were available for such purpose.

SEC. 213. OUTREACH PROGRAM TO VETERANS IN RURAL AREAS.

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

SEC. 214. PILOT PROGRAM ON IMPROVEMENT OF CAREGIVER ASSISTANCE 
              SERVICES.

    (a) In General.--Commencing not later than 120 days after the date 
of the enactment of this Act, the Secretary of Veterans Affairs shall 
carry out a pilot program to assess the feasibility and advisability of 
various mechanisms to expand and improve caregiver assistance services.
    (b) Duration of Pilot Program.--The pilot program required by 
subsection (a) shall be carried out during the two-year period 
beginning on the date of the commencement of the pilot program.
    (c) Caregiver Assistance Services.--For purposes of this section, 
the term ``caregiver assistance services'' means services of the 
Department of Veterans Affairs that assist caregivers of veterans. Such 
services including the following:
        (1) Adult-day health care services.
        (2) Coordination of services needed by veterans, including 
    services for readjustment and rehabilitation.
        (3) Transportation services.
        (4) Caregiver support services, including education, training, 
    and certification of family members in caregiver activities.
        (5) Home care services.
        (6) Respite care.
        (7) Hospice services.
        (8) Any modalities of non-institutional long-term care.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Veterans Affairs $5,000,000 for each 
of fiscal years 2007 and 2008 to carry out the pilot program authorized 
by this section.
    (e) Allocation of Funds to Facilities.--The Secretary shall 
allocate funds appropriated pursuant to the authorization of 
appropriations in subsection (d) to individual medical facilities of 
the Department in such amounts as the Secretary determines appropriate, 
based upon proposals submitted by such facilities for the use of such 
funds for improvements to the support of the provision of caregiver 
assistance services. Special consideration should be given to rural 
facilities, including those without a long-term care facility of the 
Department.
    (f) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the Committee on 
Veterans' Affairs of the Senate and the Committee on Veterans' Affairs 
of the House of Representatives a report on the implementation of this 
section. The report shall include--
        (1) a description and assessment of the activities carried out 
    under the pilot program;
        (2) information on the allocation of funds to facilities of the 
    Department under subsection (e); and
        (3) a description of the improvements made with funds so 
    allocated to the support of the provision of caregiver assistance 
    services.

SEC. 215. EXPANSION OF OUTREACH ACTIVITIES OF VET CENTERS.

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

SEC. 216. CLARIFICATION AND ENHANCEMENT OF BEREAVEMENT COUNSELING.

    (a) Clarification of Members of Immediate Family Eligible for 
Counseling.--Subsection (b) of section 1783 is amended--
        (1) by inserting ``(1)'' before ``The Secretary''; and
        (2) by adding at the end the following new paragraph:
    ``(2) For purposes of this subsection, the members of the immediate 
family of a member of the Armed Forces described in paragraph (1) 
include the parents of such member.''.
    (b) Provision of Counseling Through Vet Centers.--Such section is 
further amended--
        (1) by redesignating subsection (c) as subsection (d); and
        (2) by inserting after subsection (b) the following new 
    subsection (c):
    ``(c) Provision of Counseling Through Vet Centers.--Bereavement 
counseling may be provided under this section through the facilities 
and personnel of centers for the provision of readjustment counseling 
and related mental health services under section 1712A of this 
title.''.

SEC. 217. FUNDING FOR VET CENTER PROGRAM.

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

                      TITLE III--EDUCATION MATTERS

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

    (a) Expansion of Eligibility.--Section 3501(a)(1) is amended--
        (1) in the matter preceding subparagraph (A), by striking 
    ``means--'' and inserting ``means any of the following:'';
        (2) in each of subparagraphs (A) through (D), by capitalizing 
    the first letter of the first word;
        (3) in subparagraph (A)--
            (A) by inserting after ``a person who'' the following: ``, 
        as a result of qualifying service'';
            (B) by striking the comma at the end of clause (i) and 
        inserting ``; or'';
            (C) by striking ``, or'' at the end of clause (ii) and 
        inserting a period; and
            (D) by striking clause (iii);
        (4) in subparagraph (B) by striking the comma at the end and 
    inserting the following: ``sustained during a period of qualifying 
    service.'';
        (5) in subparagraph (C)--
            (A) by inserting ``or child'' after ``the spouse''; and
            (B) by striking ``, or'' at the end and inserting a period;
        (6) in subparagraph (D)--
            (A) in clause (i), by inserting before the comma the 
        following: ``sustained during a period of qualifying service''; 
        and
            (B) by striking the comma at the end and inserting a 
        period;
        (7) by inserting after subparagraph (D) the following new 
    subparagraph:
            ``(E) The spouse or child of a person who--
                ``(i) at the time of the Secretary's determination 
            under clause (ii), is a member of the Armed Forces who is 
            hospitalized or receiving outpatient medical care, 
            services, or treatment;
                ``(ii) the Secretary determines has a total disability 
            permanent in nature incurred or aggravated in the line of 
            duty in the active military, naval, or air service; and
                ``(iii) is likely to be discharged or released from 
            such service for such disability.''; and
        (8) by striking ``arising out of'' and all that follows through 
    the end.
    (b) Conforming Amendments to Chapter 35.--Chapter 35 is amended as 
follows:
        (1) Section 3501(a) is amended by adding at the end the 
    following new paragraph:
        ``(12) The term `qualifying service' means service in the 
    active military, naval, or air service after the beginning of the 
    Spanish-American War that did not terminate under dishonorable 
    conditions.''.
        (2) Section 3511 is amended--
            (A) in subsection (a)(1)--
                (i) by striking ``Each eligible person'' and inserting 
            the following: ``Each eligible person, whether made 
            eligible by one or more of the provisions of section 
            3501(a)(1) of this title,'';
                (ii) by striking ``a period'' and inserting ``an 
            aggregate period''; and
                (iii) by striking the second sentence;
            (B) in subsection (b)--
                (i) in paragraph (2)--

                    (I) by striking ``the provisions of section 
                3501(a)(1)(A)(iii) or'' and inserting ``section''; and
                    (II) by striking ``or'' at the end;

                (ii) in paragraph (3)--

                    (I) by striking ``section 3501(a)(1)(D)'' and 
                inserting ``subparagraph (D) or (E) of section 
                3501(a)(1)''; and
                    (II) by inserting ``or'' after the comma at the 
                end; and

                (iii) by inserting after paragraph (3) the following 
            new paragraph:
        ``(4) the parent or spouse from whom such eligibility is 
    derived based upon subparagraph (E) of section 3501(a)(1) of this 
    title no longer meets a requirement under clause (i), (ii), or 
    (iii) of that subparagraph,''; and
            (C) by striking subsection (c).
        (3) Section 3512 is amended--
            (A) in subsection (a)--
                (i) by striking ``an eligible person (within the 
            meaning of section 3501(a)(1)(A) of this title)'' and 
            inserting ``an eligible person whose eligibility is based 
            on the death or disability of a parent or on a parent being 
            listed in one of the categories referred to in section 
            3501(a)(1)(C) of this title''; and
                (ii) in paragraph (6), by striking ``the provisions of 
            section 3501(a)(1)(A)(iii)'' and inserting ``a parent being 
            listed in one of the categories referred to in section 
            3501(a)(1)(C)'';
            (B) in subsection (b)--
                (i) in paragraph (1)(A)--

                    (I) by inserting after ``section 3501(a)(1) of this 
                title'' the following: ``or a person made eligible by 
                the disability of a spouse under section 3501(a)(1)(E) 
                of this title''; and
                    (II) by striking ``or 3501(a)(1)(D)(ii) of this 
                title'' and inserting ``3501(a)(1)(D)(ii), or 
                3501(a)(1)(E) of this title'';

                (ii) in paragraph (1)(B), by adding at the end the 
            following new clause:
        ``(iii) The date on which the Secretary notifies the member of 
    the Armed Forces from whom eligibility is derived that the member 
    has a total disability permanent in nature incurred or aggravated 
    in the line of duty in the active military, naval, or air 
    service.''; and
                (iii) in paragraph (2)--

                    (I) by striking ``or (D) of this title'' and 
                inserting ``(D), or (E) of this title''; and
                    (II) by inserting ``whose eligibility is based on 
                the death or disability of a spouse or on a spouse 
                being listed in one of the categories referred to in 
                section 3501(a)(1)(C) of this title'' after ``of this 
                title)'';

            (C) in subsection (d), by striking ``veteran'' and 
        inserting ``person''; and
            (D) in subsection (e)--
                (i) by inserting ``based on a spouse being listed in 
            one of the categories referred to in section 3501(a)(1)(C) 
            of this title'' after ``of this title'';
                (ii) by inserting ``so'' after ``the spouse was''; and
                (iii) by striking ``by the Secretary'' and all that 
            follows through ``occurs''.
        (4) Section 3540 is amended by striking ``(as defined in 
    subparagraphs (A), (B), and (D) of section 3501(a)(1) of this 
    title)'' and inserting ``(other than a person made eligible under 
    subparagraph (C) of such section by reason of a spouse being listed 
    in one of the categories referred to in that subparagraph)''.
        (5) Section 3563 is amended by striking ``each eligible person 
    defined in section 3501(a)(1)(A) of this title'' and inserting 
    ``each eligible person whose eligibility is based on the death or 
    disability of a parent or on a parent being listed in one of the 
    categories referred to in section 3501(a)(1)(C) of this title''.
    (c) Other Conforming Amendments.--Such title is further amended as 
follows:
        (1) Section 3686(a)(1) is amended by striking ``or (D)'' and 
    inserting ``(D), or (E)''.
        (2) Section 5113(b)(3) is amended--
            (A) in subparagraph (B) by striking ``section 3501(a)(1)'' 
        and all that follows through the end and inserting the 
        following: ``subparagraphs (A), (B), (D), and (E) of section 
        3501(a)(1) of this title.''; and
            (B) in subparagraph (C)--
                (i) by striking ``such veteran's death'' and inserting 
            ``the death of the person from whom such eligibility is 
            derived''; and
                (ii) by striking ``such veteran's service-connected 
            total disability permanent in nature'' and inserting ``the 
            service-connected total disability permanent in nature (or, 
            in the case of a person made eligible under section 
            3501(a)(1)(E), the total disability permanent in nature 
            incurred or aggravated in the line of duty in the active 
            military, naval, or air service) of the person from whom 
            such eligibility is derived''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to a payment of educational assistance for a course 
of education pursued after the date of the enactment of this Act.

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

    (a) Restoration of Entitlement.--Section 3511(a)(2)(B)(i) is 
amended by inserting after ``title 10'' the following: ``or of being 
involuntarily ordered to full-time National Guard duty under section 
502(f) of title 32''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to a payment of educational assistance allowance 
made after September 11, 2001.

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

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

SEC. 304. EXTENSION OF WORK-STUDY ALLOWANCE.

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

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

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

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

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

SEC. 307. TECHNICAL AMENDMENTS RELATING TO EDUCATION LAWS.

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

        TITLE IV--NATIONAL CEMETERY AND MEMORIAL AFFAIRS MATTERS

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

    (a) Provision of Memorial Headstones or Markers.--Subsection (b) of 
section 2306 is amended--
        (1) in paragraph (2), by adding at the end the following new 
    subparagraph:
        ``(C) An eligible dependent child of a veteran.''; and
        (2) by adding at the end the following new paragraph:
    ``(5) For purposes of this section, the term `eligible dependent 
child' means a child--
        ``(A) who is under 21 years of age, or under 23 years of age if 
    pursuing a course of instruction at an approved educational 
    institution; or
        ``(B) who is unmarried and became permanently physically or 
    mentally disabled and incapable of self-support before reaching 21 
    years of age, or before reaching 23 years of age if pursuing a 
    course of instruction at an approved educational institution.''.
    (b) Addition of Memorial Inscription to Headstone or Marker of 
Veteran.--Subsection (f) of such section is amended by inserting ``or 
eligible dependent child'' after ``surviving spouse'' both places it 
appears.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to individuals dying after the date of the 
enactment of this Act.

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

    (a) Extension of Authority.--Paragraph (3) of subsection (d) of 
section 2306 is amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
    (b) Provision of Headstone or Marker.--
        (1) In general.--Such subsection is further amended--
            (A) in paragraph (1)--
                (i) in the first sentence, by striking ``Government 
            marker'' and inserting ``Government headstone or marker''; 
            and
                (ii) in the second sentence, by inserting ``headstone 
            or'' before ``marker'' each place it appears; and
            (B) in paragraph (2), by inserting ``headstone or'' before 
        ``marker''.
        (2) Conforming amendment.--Subsection (g)(3) of such section is 
    amended by inserting ``headstone or'' before ``marker''.
    (c) Placement of Headstone or Marker.--The second sentence of 
subsection (d)(1) of such section, as amended by subsection 
(b)(1)(A)(ii), is further amended by inserting before the period the 
following: ``, or, if placement on the grave is impossible or 
impracticable, as close as possible to the grave within the grounds of 
the cemetery in which the grave is located''.
    (d) Delivery of Headstone or Marker.--Subsection (d)(2) of such 
section, as amended by subsection (b)(1)(B), is further amended by 
inserting before the period the following: ``or to a receiving agent 
for delivery to the cemetery''.
    (e) Repeal of Obsolete Report Requirement.--Subsection (d) of such 
section is further amended by striking paragraph (4).
    (f) Scope of Headstones and Markers Furnished.--Subsection (d) of 
such section is further amended by inserting after paragraph (3) the 
following new paragraph (4):
    ``(4) The headstone or marker furnished under this subsection shall 
be the headstone or marker selected by the individual making the 
request from among all the headstones and markers made available by the 
Government for selection.''.

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

    Section 2408 is amended by adding at the end the following new 
subsection:
    ``(f)(1) The Secretary may make grants under this subsection to any 
tribal organization to assist the tribal organization in establishing, 
expanding, or improving veterans' cemeteries on trust land owned by, or 
held in trust for, the tribal organization.
    ``(2) Grants under this subsection shall be made in the same 
manner, and under the same conditions, as grants to States are made 
under the preceding provisions of this section.
    ``(3) For purposes of this subsection:
        ``(A) The term `tribal organization' has the meaning given that 
    term in section 3765(4) of this title.
        ``(B) The term `trust land' has the meaning given that term in 
    section 3765(1) of this title.''.

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

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

              TITLE V--HOUSING AND SMALL BUSINESS MATTERS

SEC. 501. RESIDENTIAL COOPERATIVE HOUSING UNITS.

    (a) Housing Benefits for Cooperative Housing Units.--Subsection (a) 
of section 3710 is amended by inserting after paragraph (11) the 
following new paragraph:
        ``(12) With respect to a loan guaranteed after the date of the 
    enactment of this paragraph and before the date that is five years 
    after that date, to purchase stock or membership in a cooperative 
    housing corporation for the purpose of entitling the veteran to 
    occupy for dwelling purposes a single family residential unit in a 
    development, project, or structure owned or leased by such 
    corporation, in accordance with subsection (h).''.
    (b) Conditions of Housing Benefits for Cooperative Housing Units.--
Such section is further amended by adding at the end the following new 
subsection:
    ``(h)(1) A loan may not be guaranteed under subsection (a)(12) 
unless--
        ``(A) the development, project, or structure of the cooperative 
    housing corporation complies with such criteria as the Secretary 
    prescribes in regulations; and
        ``(B) the dwelling unit that the purchase of stock or 
    membership in the development, project, or structure of the 
    cooperative housing corporation entitles the purchaser to occupy is 
    a single family residential unit.
    ``(2) In this subsection, the term `cooperative housing 
corporation' has the meaning given such term in section 216(b)(1) of 
the Internal Revenue Code of 1986.
    ``(3) When applying the term `value of the property' to a loan 
guaranteed under subsection (a)(12), such term means the appraised 
value of the stock or membership entitling the purchaser to the 
permanent occupancy of the dwelling unit in the development, project, 
or structure of the cooperative housing corporation.''.

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

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

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

    ``(a) Contracting Goals.--(1) In order to increase contracting 
opportunities for small business concerns owned and controlled by 
veterans and small business concerns owned and controlled by veterans 
with service-connected disabilities, the Secretary shall--
        ``(A) establish a goal for each fiscal year for participation 
    in Department contracts (including subcontracts) by small business 
    concerns owned and controlled by veterans who are not veterans with 
    service-connected disabilities in accordance with paragraph (2); 
    and
        ``(B) establish a goal for each fiscal year for participation 
    in Department contracts (including subcontracts) by small business 
    concerns owned and controlled by veterans with service-connected 
    disabilities in accordance with paragraph (3).
    ``(2) The goal for a fiscal year for participation under paragraph 
(1)(A) shall be determined by the Secretary.
    ``(3) The goal for a fiscal year for participation under paragraph 
(1)(B) shall be not less than the Government-wide goal for that fiscal 
year for participation by small business concerns owned and controlled 
by veterans with service-connected disabilities under section 15(g)(1) 
of the Small Business Act (15 U.S.C. 644(g)(1)).
    ``(4) The Secretary shall establish a review mechanism to ensure 
that, in the case of a subcontract of a Department contract that is 
counted for purposes of meeting a goal established pursuant to this 
section, the subcontract was actually awarded to a business concern 
that may be counted for purposes of meeting that goal.
    ``(b) Use of Noncompetitive Procedures for Certain Small 
Contracts.--For purposes of meeting the goals under subsection (a), and 
in accordance with this section, in entering into a contract with a 
small business concern owned and controlled by veterans for an amount 
less than the simplified acquisition threshold (as defined in section 4 
of the Office of Federal Procurement Policy Act (41 U.S.C. 403)), a 
contracting officer of the Department may use procedures other than 
competitive procedures.
    ``(c) Sole Source Contracts for Contracts Above Simplified 
Acquisition Threshold.--For purposes of meeting the goals under 
subsection (a), and in accordance with this section, a contracting 
officer of the Department may award a contract to a small business 
concern owned and controlled by veterans using procedures other than 
competitive procedures if--
        ``(1) such concern is determined to be a responsible source 
    with respect to performance of such contract opportunity;
        ``(2) the anticipated award price of the contract (including 
    options) will exceed the simplified acquisition threshold (as 
    defined in section 4 of the Office of Federal Procurement Policy 
    Act (41 U.S.C. 403)) but will not exceed $5,000,000; and
        ``(3) in the estimation of the contracting officer, the 
    contract award can be made at a fair and reasonable price that 
    offers best value to the United States.
    ``(d) Use of Restricted Competition.--Except as provided in 
subsections (b) and (c), for purposes of meeting the goals under 
subsection (a), and in accordance with this section, a contracting 
officer of the Department shall award contracts on the basis of 
competition restricted to small business concerns owned and controlled 
by veterans if the contracting officer has a reasonable expectation 
that two or more small business concerns owned and controlled by 
veterans will submit offers and that the award can be made at a fair 
and reasonable price that offers best value to the United States.
    ``(e) Eligibility of Small Business Concerns.--A small business 
concern may be awarded a contract under this section only if the small 
business concern and the veteran owner of the small business concern 
are listed in the database of veteran-owned businesses maintained by 
the Secretary under subsection (f).
    ``(f) Database of Veteran-Owned Businesses.--(1) Subject to 
paragraphs (2) through (6), the Secretary shall maintain a database of 
small business concerns owned and controlled by veterans and the 
veteran owners of such business concerns.
    ``(2) To be eligible for inclusion in the database, such a veteran 
shall submit to the Secretary such information as the Secretary may 
require with respect to the small business concern or the veteran.
    ``(3) Information maintained in the database shall be submitted on 
a voluntary basis by such veterans.
    ``(4) In maintaining the database, the Secretary shall carry out at 
least the following two verification functions:
        ``(A) Verification that each small business concern listed in 
    the database is owned and controlled by veterans.
        ``(B) In the case of a veteran who indicates a service-
    connected disability, verification of the service-disabled status 
    of such veteran.
    ``(5) The Secretary shall make the database available to all 
Federal departments and agencies and shall notify each such department 
and agency of the availability of the database.
    ``(6) If the Secretary determines that the public dissemination of 
certain types of information maintained in the database is 
inappropriate, the Secretary shall take such steps as are necessary to 
maintain such types of information in a secure and confidential manner.
    ``(g) Enforcement Penalties for Misrepresentation.--Any business 
concern that is determined by the Secretary to have misrepresented the 
status of that concern as a small business concern owned and controlled 
by veterans or as a small business concern owned and controlled by 
service-disabled veterans for purposes of this subsection shall be 
debarred from contracting with the Department for a reasonable period 
of time, as determined by the Secretary.
    ``(h) Treatment of Businesses After Death of Veteran-Owner.--(1) 
Subject to paragraph (3), if the death of a veteran causes a small 
business concern to be less than 51 percent owned by one or more 
veterans, the surviving spouse of such veteran who acquires ownership 
rights in such small business concern shall, for the period described 
in paragraph (2), be treated as if the surviving spouse were that 
veteran for the purpose of maintaining the status of the small business 
concern as a small business concern owned and controlled by veterans.
    ``(2) The period referred to in paragraph (1) is the period 
beginning on the date on which the veteran dies and ending on the 
earliest of the following dates:
        ``(A) The date on which the surviving spouse remarries.
        ``(B) The date on which the surviving spouse relinquishes an 
    ownership interest in the small business concern.
        ``(C) The date that is ten years after the date of the 
    veteran's death.
    ``(3) Paragraph (1) only applies to a surviving spouse of a veteran 
with a service-connected disability rated as 100 percent disabling or 
who dies as a result of a service-connected disability.
    ``(i) Priority for Contracting Preferences.--Preferences for 
awarding contracts to small business concerns shall be applied in the 
following order of priority:
        ``(1) Contracts awarded pursuant to subsection (b), (c), or (d) 
    to small business concerns owned and controlled by veterans with 
    service-connected disabilities.
        ``(2) Contracts awarded pursuant to subsection (b), (c), or (d) 
    to small business concerns owned and controlled by veterans that 
    are not covered by paragraph (1).
        ``(3) Contracts awarded pursuant to--
            ``(A) section 8(a) of the Small Business Act (15 U.S.C. 
        637(a)); or
            ``(B) section 31 of such Act (15 U.S.C. 657a).
        ``(4) Contracts awarded pursuant to any other small business 
    contracting preference.
    ``(j) Annual Reports.--Not later than December 31 each year, the 
Secretary shall submit to Congress a report on small business 
contracting during the fiscal year ending in such year. Each report 
shall include, for the fiscal year covered by such report, the 
following:
        ``(1) The percentage of the total amount of all contracts 
    awarded by the Department during that fiscal year that were awarded 
    to small business concerns owned and controlled by veterans.
        ``(2) The percentage of the total amount of all such contracts 
    awarded to small business concerns owned and controlled by veterans 
    with service-connected disabilities.
        ``(3) The percentage of the total amount of all contracts 
    awarded by each Administration of the Department during that fiscal 
    year that were awarded to small business concerns owned and 
    controlled by veterans.
        ``(4) The percentage of the total amount of all contracts 
    awarded by each such Administration during that fiscal year that 
    were awarded to small business concerns owned and controlled by 
    veterans with service-connected disabilities.
    ``(k) Definitions.--In this section:
        ``(1) The term `small business concern' has the meaning given 
    that term under section 3 of the Small Business Act (15 U.S.C. 
    632).
        ``(2) The term `small business concern owned and controlled by 
    veterans' means a small business concern--
            ``(A)(i) not less than 51 percent of which is owned by one 
        or more veterans or, in the case of a publicly owned business, 
        not less than 51 percent of the stock of which is owned by one 
        or more veterans; and
            ``(ii) the management and daily business operations of 
        which are controlled by one or more veterans; or
            ``(B) not less than 51 percent of which is owned by one or 
        more veterans with service-connected disabilities that are 
        permanent and total who are unable to manage the daily business 
        operations of such concern or, in the case of a publicly owned 
        business, not less than 51 percent of the stock of which is 
        owned by one or more such veterans.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by inserting after the item relating to 
    section 8126 the following new item:

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

    (b) Transition Rule.--A small business concern that is listed in 
any small business database maintained by the Secretary of Veterans 
Affairs on the date of the enactment of this Act shall be presumed to 
be eligible for inclusion in the database under subsection (f) of 
section 8127 of title 38, United States Code, as added by subsection 
(a), during the period beginning on the effective date of that section 
and ending one year after such effective date. Such a small business 
concern may be removed from the database during that period if it is 
found not to be a small business concern owned and controlled by 
veterans (as defined in subsection (k) of such section).
    (c) Comptroller General Study and Report.--
        (1) Study required.--During the first three fiscal years for 
    which this section is in effect, the Comptroller General shall 
    conduct a study on the efforts made by the Secretary of Veterans 
    Affairs to meet the contracting goals established pursuant to 
    section 8127 of title 38, United States Code, as added by 
    subsection (a).
        (2) Information to congress on study.--On or before January 31 
    of each year during which the Comptroller General conducts the 
    study under paragraph (1), the Comptroller General shall brief 
    Congress on such study, placing special emphasis on any structural 
    or organizational issues within the Department of Veterans Affairs 
    that might act as an impediment to reaching such contracting goals.
        (3) Report.--Not later than 180 days after the end of the 
    three-year period during which the Comptroller General conducts the 
    study under paragraph (1), the Comptroller General shall submit to 
    Congress a report on the findings of such study.
    (d) Effective Date.--This section and the amendments made by this 
section shall take effect on the date that is 180 days after the date 
of the enactment of this Act.

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

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

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

    ``(a) Contracting Priority.--In procuring goods and services 
pursuant to a contracting preference under this title or any other 
provision of law, the Secretary shall give priority to a small business 
concern owned and controlled by veterans, if such business concern also 
meets the requirements of that contracting preference.
    ``(b) Definition.--For purposes of this section, the term `small 
business concern owned and controlled by veterans' means a small 
business concern that is included in the small business database 
maintained by the Secretary under section 8127(f) of this title.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter, as so amended, is further amended by inserting 
    after the item relating to section 8127 the following new item:

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

    (b) Effective Date.--This section and the amendments made by this 
section shall take effect on the date that is 180 days after the date 
of the enactment of this Act.

               TITLE VI--EMPLOYMENT AND TRAINING MATTERS

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

    (a) Training Required.--Section 4102A(c) is amended by adding at 
the end the following new paragraph:
    ``(8)(A) As a condition of a grant or contract under which funds 
are made available to a State in order to carry out section 4103A or 
4104 of this title, the Secretary shall require the State to require 
each employee hired by the State who is assigned to perform the duties 
of a disabled veterans' outreach program specialist or a local 
veterans' employment representative under this chapter to 
satisfactorily complete training provided by the National Veterans' 
Employment and Training Services Institute during the three-year period 
that begins on the date on which the employee is so assigned.
    ``(B) For any employee described in subparagraph (A) who does not 
complete such training during such period, the Secretary may reduce by 
an appropriate amount the amount made available to the State employing 
that employee.
    ``(C) The Secretary may establish such reasonable exceptions to the 
completion of training otherwise required under subparagraph (A) as the 
Secretary considers appropriate.''.
    (b) Submission of Employee Training Information Required.--Section 
4102A(c)(2)(A) is amended--
        (1) by redesignating clause (iii) as clause (iv); and
        (2) by inserting after clause (ii) the following new clause 
    (iii):
        ``(iii) For each employee of the State who is assigned to 
    perform the duties of a disabled veterans' outreach program 
    specialist or a local veterans' employment representative under 
    this chapter--
            ``(I) the date on which the employee is so assigned; and
            ``(II) whether the employee has satisfactorily completed 
        such training by the National Veterans' Employment and Training 
        Services Institute as the Secretary requires for purposes of 
        paragraph (8).''.
    (c) Applicability.--Paragraph (8) of section 4102A(c) of title 38, 
United States Code, as added by subsection (a), and clause (iii) of 
section 4102A(c)(2)(A) of such title, as added by subsection (b), shall 
apply with respect to a State employee assigned to perform the duties 
of a disabled veterans' outreach program specialist or a local 
veterans' employment representative under chapter 41 of such title who 
is so assigned on or after January 1, 2006.

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

    (a) Disabled Veterans' Outreach Program Specialists.--Section 4103A 
is amended by adding at the end the following new subsection:
    ``(c) Part-Time Employees.--A part-time disabled veterans' outreach 
program specialist shall perform the functions of a disabled veterans' 
outreach program specialist under this section on a half-time basis.''.
    (b) Local Veterans' Employment Representatives.--Section 4104 is 
amended--
        (1) by redesignating subsection (d) as subsection (e); and
        (2) by inserting after subsection (c) the following new 
    subsection (d):
    ``(d) Part-Time Employees.--A part-time local veterans' employment 
representative shall perform the functions of a local veterans' 
employment representative under this section on a half-time basis.''.
    (c) Effective Date.--Section 4103A(c) of title 38, United States 
Code, as added by subsection (a), and section 4104(d) of such title, as 
amended by subsection (b), shall apply with respect to pay periods 
beginning after the date that is 180 days after the date of the 
enactment of this Act.

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

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

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

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

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

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

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

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

SEC. 605. DEPARTMENT OF LABOR IMPLEMENTATION OF REGULATIONS FOR 
              PRIORITY OF SERVICE.

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

                TITLE VII--HOMELESS VETERANS ASSISTANCE

SEC. 701. REAFFIRMATION OF NATIONAL GOAL TO END HOMELESSNESS AMONG 
              VETERANS.

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

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

    It is the sense of Congress that--
        (1) homelessness is a significant problem in the veterans 
    community and veterans are disproportionately represented among the 
    homeless population;
        (2) while many effective programs assist homeless veterans to 
    become, once again, productive and self-sufficient members of their 
    communities and society, all the essential services, assistance, 
    and support that homeless veterans require are not currently 
    provided;
        (3) federally funded programs for homeless veterans should be 
    held accountable for achieving clearly defined results;
        (4) Federal efforts to assist homeless veterans should include 
    prevention of homelessness;
        (5) Federal efforts regarding homeless veterans should be 
    particularly vigorous where women veterans have minor children in 
    their care;
        (6) Federal agencies, particularly the Department of Veterans 
    Affairs, the Department of Labor, and the Department of Housing and 
    Urban Development, should cooperate more fully to address the 
    problem of homelessness among veterans; and
        (7) the programs reauthorized by this title provide important 
    housing and services to homeless veterans.

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

    (a) Permanent Authority.--Section 2011(a) is amended--
        (1) by striking paragraph (2); and
        (2) in paragraph (1)--
            (A) by striking ``(1)''; and
            (B) by redesignating subparagraphs (A) through (D) as 
        paragraphs (1) through (4), respectively.
    (b) Authorization of Appropriations.--The text of section 2013 is 
amended to read as follows: ``There is authorized to be appropriated to 
carry out this subchapter $130,000,000 for fiscal year 2007 and each 
fiscal year thereafter.''.

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

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

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

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

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

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

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

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

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

    Section 2065(b) is amended--
        (1) by redesignating paragraph (5) as paragraph (6); and
        (2) by inserting after paragraph (4) the following new 
    paragraph (5):
        ``(5) Information on the efforts of the Secretary to coordinate 
    the delivery of housing and services to homeless veterans with 
    other Federal departments and agencies, including--
            ``(A) the Department of Defense;
            ``(B) the Department of Health and Human Services;
            ``(C) the Department of Housing and Urban Development;
            ``(D) the Department of Justice;
            ``(E) the Department of Labor;
            ``(F) the Interagency Council on Homelessness;
            ``(G) the Social Security Administration; and
            ``(H) any other Federal department or agency with which the 
        Secretary coordinates the delivery of housing and services to 
        homeless veterans.''.

SEC. 709. ADVISORY COMMITTEE ON HOMELESS VETERANS.

    (a) Additional Ex Officio Members.--Subsection (a)(3) of section 
2066 is amended by adding at the end the following new subparagraphs:
        ``(E) The Executive Director of the Interagency Council on 
    Homelessness (or a representative of the Executive Director).
        ``(F) The Under Secretary for Health (or a representative of 
    the Under Secretary after consultation with the Director of the 
    Office of Homeless Veterans Programs).
        ``(G) The Under Secretary for Benefits (or a representative of 
    the Under Secretary after consultation with the Director of the 
    Office of Homeless Veterans Programs).''.
    (b) Extension.--Subsection (d) of such section is amended by 
striking ``December 31, 2006'' and inserting ``December 30, 2011''.

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

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

                    TITLE VIII--CONSTRUCTION MATTERS
             Subtitle A--Construction and Lease Authorities

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

    (a) In General.--The Secretary of Veterans Affairs may carry out 
the following major medical facility projects in fiscal year 2006, with 
each project to be carried out in the amount specified for that 
project:
        (1) Restoration, new construction or replacement of the medical 
    center facility for the Department of Veterans Affairs Medical 
    Center, New Orleans, Louisiana, due to damage from Hurricane 
    Katrina in an amount not to exceed $300,000,000. The Secretary is 
    authorized to carry out the project in or near New Orleans as a 
    collaborative effort consistent with the New Orleans Collaborative 
    Opportunities Study Group Report dated June 12, 2006.
        (2) Restoration of the Department of Veterans Affairs Medical 
    Center, Biloxi, Mississippi, and consolidation of services 
    performed at the Department of Veterans Affairs Medical Center, 
    Gulfport, Mississippi, in an amount not to exceed $310,000,000.
        (3) Replacement of the Department of Veterans Affairs Medical 
    Center, Denver, Colorado, in an amount not to exceed $98,000,000.
    (b) Report on Replacement of Department of Veterans Affairs Medical 
Center, Denver, Colorado.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Veterans Affairs shall 
submit to the Committee on Veterans' Affairs of the Senate and the 
Committee on Veterans' Affairs of the House of Representatives a report 
identifying and outlining the various options available to the 
Department of Veterans Affairs for replacing the current Department of 
Veterans Affairs Medical Center, Denver, Colorado. The report shall 
include the following:
        (1) The feasibility of entering into a partnership with a 
    Federal, State, or local governmental agency, or a suitable non-
    profit organization, for the construction and operation of a new 
    facility.
        (2) The medical, legal, and financial implications of each of 
    the options identified, including recommendations regarding any 
    statutory changes necessary for the Department of Veterans Affairs 
    to carry out any of the options identified.
        (3) A detailed cost-benefit analysis of each of the options 
    identified.
        (4) Estimates regarding the length of time and associated costs 
    needed to complete such a facility under each of the options 
    identified.

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

    The Secretary of Veterans Affairs may carry out the following major 
medical facility projects, with each such project to be carried out in 
the amount specified for that project:
        (1) Construction of an outpatient clinic and regional office at 
    the Department of Veterans Affairs Medical Center, Anchorage, 
    Alaska, in an amount not to exceed $75,270,000.
        (2) Consolidation of clinical and administrative functions of 
    the Department of Veterans Affairs Medical Center, Cleveland, Ohio, 
    and the Department of Veterans Affairs Medical Center in 
    Brecksville, Ohio, in an amount not to exceed $102,300,000.
        (3) Construction of the Extended Care Building at the 
    Department of Veterans Affairs Medical Center, Des Moines, Iowa, in 
    an amount not to exceed $25,000,000.
        (4) Renovation of patient wards at the Department of Veterans 
    Affairs Medical Center, Durham, North Carolina, in an amount not to 
    exceed $9,100,000.
        (5) Correction of patient privacy deficiencies at the 
    Department of Veterans Affairs Medical Center, Gainesville, 
    Florida, in an amount not to exceed $85,200,000.
        (6) 7th and 8th floor wards modernization addition at the 
    Department of Veterans Affairs Medical Center, Indianapolis, 
    Indiana, in an amount not to exceed $27,400,000.
        (7) Construction of a new Medical Center Facility at the 
    Department of Veterans Affairs Medical Center, Las Vegas, Nevada, 
    in an amount not to exceed $406,000,000.
        (8) Construction of an ambulatory surgery/outpatient diagnostic 
    support center in the Gulf South Submarket of Veterans Integrated 
    Service Network (VISN) 8 and completion of Phase I land purchase, 
    Lee County, Florida, in an amount not to exceed $65,100,000.
        (9) Seismic corrections, Buildings 7 and 126 at the Department 
    of Veterans Affairs Medical Center, Long Beach, California, in an 
    amount not to exceed $107,845,000.
        (10) Seismic Corrections, Buildings 500 and 501 at the 
    Department of Veterans Affairs Medical Center, Los Angeles, 
    California, in an amount not to exceed $79,900,000.
        (11) Construction of a new medical center facility in the 
    Orlando, Florida, area in an amount not to exceed $377,700,000.
        (12) Consolidation of campuses at the University Drive and H. 
    John Heinz III divisions, Pittsburgh, Pennsylvania, in an amount 
    not to exceed $189,205,000.
        (13) Ward upgrades and expansion at the Department of Veterans 
    Affairs Medical Center, San Antonio, Texas, in an amount not to 
    exceed $19,100,000.
        (14) Construction of a spinal cord injury center at the 
    Department of Veterans Affairs Medical Center, Syracuse, New York, 
    in an amount not to exceed $77,700,000.
        (15) Upgrade essential electrical distribution systems at the 
    Department of Veterans Affairs Medical Center, Tampa, Florida, in 
    an amount not to exceed $49,000,000.
        (16) Expansion of the spinal cord injury center addition at the 
    Department of Veterans Affairs Medical Center, Tampa, Florida, in 
    an amount not to exceed $7,100,000.
        (17) Blind Rehabilitation and Psychiatric Bed renovation and 
    new construction project at the Department of Veterans Affairs 
    Medical Center, Temple, Texas, in an amount not to exceed 
    $56,000,000.

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

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

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

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

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

    The Secretary of Veterans Affairs may carry out the following major 
medical facility leases in fiscal year 2006 at the locations specified, 
and in an amount for each lease not to exceed the amount shown for such 
location:
        (1) For an outpatient clinic, Baltimore, Maryland, $10,908,000.
        (2) For an outpatient clinic, Evansville, Indiana, $8,989,000.
        (3) For an outpatient clinic, Smith County, Texas, $5,093,000.

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

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

SEC. 807. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations for Fiscal Year 2006 Major 
Medical Facility Projects.--There is authorized to be appropriated to 
the Secretary of Veterans Affairs for fiscal year 2006 for the 
Construction, Major Projects, account, $708,000,000 for the projects 
authorized in section 801(a).
    (b) Authorization of Appropriations for Major Medical Facility 
Projects Under Capital Asset Realignment Initiative.--
        (1) Authorization of appropriations.--There is authorized to be 
    appropriated for the Secretary of Veterans Affairs for fiscal year 
    2007 for the Construction, Major Projects, account, $1,758,920,000 
    for the projects whose authorization is extended by section 802.
        (2) Availability.--Amounts appropriated pursuant to the 
    authorization of appropriations in paragraph (1) shall remain 
    available until September 30, 2009.
    (c) Authorization of Appropriations for Fiscal Year 2007 Major 
Medical Facility Projects.--There is authorized to be appropriated to 
the Secretary of Veterans Affairs for fiscal year 2007 for the 
Construction, Major Projects, account, $221,766,000 for the projects 
authorized in section 803.
    (d) Authorization of Appropriations for Advance Planning and Design 
for Major Medical Facility, Charleston, South Carolina.--There is 
authorized to be appropriated to the Secretary of Veterans Affairs for 
the Construction, Major Projects, account, $36,800,000 for the advance 
planning and design authorized in section 804.
    (e) Authorization of Appropriations for Major Medical Facility 
Leases.--
        (1) Fiscal year 2006 leases.--There is authorized to be 
    appropriated for the Secretary of Veterans Affairs for fiscal year 
    2006 for the Medical Care account, $24,990,000 for the leases 
    authorized in section 805.
        (2) Fiscal year 2007 leases.--There is authorized to be 
    appropriated for the Secretary of Veterans Affairs for fiscal year 
    2007 for the Medical Care account, $26,642,000 for the leases 
    authorized in section 806.
    (f) Limitation.--The projects authorized in sections 801(a) and 802 
may only be carried out using--
        (1) funds appropriated for fiscal year 2006 or 2007 pursuant to 
    the authorization of appropriations in subsections (a), (b), and 
    (c) of this section;
        (2) funds available for Construction, Major Projects, for a 
    fiscal year before fiscal year 2006 that remain available for 
    obligation;
        (3) funds available for Construction, Major Projects, for a 
    fiscal year after fiscal year 2006 or 2007 that are available for 
    obligation; and
        (4) funds appropriated for Construction, Major Projects, for 
    fiscal year 2006 or 2007 for a category of activity not specific to 
    a project.

                 Subtitle B--Facilities Administration

SEC. 811. DIRECTOR OF CONSTRUCTION AND FACILITIES MANAGEMENT.

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

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

    ``(a) In General.--(1) There is in the Department a Director of 
Construction and Facilities Management, who shall be appointed by the 
Secretary.
    ``(2) The position of Director of Construction and Facilities 
Management is a career reserved position, as such term is defined in 
section 3132(a)(8) of title 5.
    ``(3) The Director shall provide direct support to the Secretary in 
matters covered by the responsibilities of the Director under 
subsection (c).
    ``(4) The Director shall report to the Deputy Secretary in the 
discharge of the responsibilities of the Director under subsection (c).
    ``(b) Qualifications.--Each individual appointed as Director of 
Construction and Facilities Management shall be an individual who--
        ``(1) holds an undergraduate or master's degree in 
    architectural design or engineering; and
        ``(2) has substantive professional experience in the area of 
    construction project management.
    ``(c) Responsibilities.--(1) The Director of Construction and 
Facilities Management shall--
        ``(A) be responsible for overseeing and managing the planning, 
    design, construction, and operation of facilities and 
    infrastructure of the Department, including major and minor 
    construction projects; and
        ``(B) perform such other functions as the Secretary shall 
    prescribe.
    ``(2) In carrying out the oversight and management of construction 
and operation of facilities and infrastructure under this section, the 
Director shall be responsible for the following:
        ``(A) Development and updating of short-range and long-range 
    strategic capital investment strategies and plans of the 
    Department.
        ``(B) Planning, design, and construction of facilities for the 
    Department, including determining architectural and engineering 
    requirements and ensuring compliance of the Department with 
    applicable laws relating to the construction program of the 
    Department.
        ``(C) Management of the short-term and long-term leasing of 
    real property by the Department.
        ``(D) Repair and maintenance of facilities of the Department, 
    including custodial services, building management and 
    administration, and maintenance of roads, grounds, and 
    infrastructure.
        ``(E) Management of procurement and acquisition processes 
    relating to the construction and operation of facilities of the 
    Department, including the award of contracts related to design, 
    construction, furnishing, and supplies and equipment.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
312 the following new item:

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

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

    Section 8104(a)(3)(A) is amended by striking ``$7,000,000'' and 
inserting ``$10,000,000''.

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

    (a) Conveyance Authorized.--The Secretary of Veterans Affairs may 
convey to the city of Fort Thomas, Kentucky (in this section referred 
to as the ``City''), all right, title, and interest of the United 
States in and to a parcel of real property, including the 15 structures 
located thereon, consisting of approximately 11.75 acres that is 
managed by the Department of Veterans Affairs and located in the 
northeastern portion of Tower Park in Fort Thomas, Kentucky. Any such 
conveyance shall be subject to valid existing rights, easements, and 
rights-of-way.
    (b) Consideration.--As consideration for the conveyance under 
subsection (a), the City shall pay to the United States an amount equal 
to the fair market value of the conveyed real property, as determined 
by the Secretary.
    (c) Treatment of Consideration.--The consideration received under 
subsection (b) shall be deposited, at the discretion of the Secretary, 
in the ``Medical Facilities'' account or the ``Construction, Minor 
Projects'' account (or a combination of those accounts) and shall be 
available to the Secretary, without limitation and until expended--
        (1) to cover costs incurred by the Secretary associated with 
    the environmental remediation of the real property before 
    conveyance under subsection (a); and
        (2) with any funds remaining after the Secretary has covered 
    costs as required under paragraph (1), for acquisition of a site 
    for use as a parking facility, or contract (by lease or otherwise) 
    for the operation of a parking facility, to be used in connection 
    with the Department of Veterans Affairs Medical Facility, 
    Cincinnati, Ohio.
    (d) Release From Liability.--Effective on the date of the 
conveyance under subsection (a), the United States shall not be liable 
for damages arising out of any act, omission, or occurrence relating to 
the conveyed real property, but shall continue to be liable for damages 
caused by acts of negligence committed by the United States or by any 
employee or agent of the United States before the date of conveyance, 
consistent with chapter 171 of title 28, United States Code.
    (e) Payment of Costs of Conveyance.--
        (1) Payment required.--The Secretary shall require the City to 
    cover costs to be incurred by the Secretary, or to reimburse the 
    Secretary for costs incurred by the Secretary, to carry out the 
    conveyance under subsection (a), including survey costs, costs 
    related to environmental documentation, and other administrative 
    costs related to the conveyance. If amounts are collected from the 
    City in advance of the Secretary incurring the actual costs, and 
    the amount collected exceeds the costs actually incurred by the 
    Secretary to carry out the conveyance, the Secretary shall refund 
    the excess amount to the City.
        (2) Treatment of amounts received.--Amounts received as 
    reimbursement under paragraph (1) shall be credited to the fund or 
    account that was used to cover the costs incurred by the Secretary 
    in carrying out the conveyance. Amounts so credited shall be merged 
    with amounts in such fund or account and shall be available for the 
    same purposes, and subject to the same conditions and limitations, 
    as amounts in such fund or account.
    (f) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (g) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers necessary to protect 
the interests of the United States.

          Subtitle C--Reports on Medical Facility Improvements

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

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Veterans Affairs shall submit to the Committee on 
Veterans' Affairs of the Senate and the Committee on Veterans' Affairs 
of the House of Representatives a report identifying and outlining the 
various options available to the Department of Veterans Affairs for 
replacing the current Department of Veterans Affairs Medical Center, 
San Juan, Puerto Rico. The report shall not affect current contracts at 
the current site, and the report shall include the following:
        (1) The feasibility of entering into a partnership with a 
    Federal, Commonwealth, or local governmental agency, or a suitable 
    non-profit organization, for the construction and operation of a 
    new facility.
        (2) The medical, legal, and financial implications of each of 
    the options identified, including recommendations regarding any 
    statutory changes necessary for the Department to carry out any of 
    the options identified.
        (3) A detailed cost-benefit analysis of each of the options 
    identified.
        (4) Estimates regarding the length of time and associated costs 
    needed to complete such a facility under each of the options 
    identified.

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

    (a) Requirement.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall submit 
to the Committee on Veterans' Affairs of the Senate and the Committee 
on Veterans' Affairs of the House of Representatives a business plan 
for enhanced access to outpatient care (as described in subsection (b)) 
for primary care, mental health care, and specialty care in each of the 
following areas:
        (1) The Lewiston-Auburn area of Maine.
        (2) The area of Houlton, Maine.
        (3) The area of Dover-Foxcroft, Maine.
        (4) Whiteside County, Illinois.
    (b) Means of Enhanced Access.--The means of enhanced access to 
outpatient care to be covered by the business plans under subsection 
(a) are, with respect to each area specified in that subsection, one or 
more of the following:
        (1) New sites of care.
        (2) Expansions at existing sites of care.
        (3) Use of existing authority and policies to contract for care 
    where necessary.
        (4) Increased use of telemedicine.

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

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

                 TITLE IX--INFORMATION SECURITY MATTERS

SEC. 901. SHORT TITLE.

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

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

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

                 ``SUBCHAPTER III--INFORMATION SECURITY

``Sec. 5721. Purpose

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

``Sec. 5722. Policy

    ``(a) In General.--The security of Department information and 
information systems is vital to the success of the mission of the 
Department. To that end, the Secretary shall establish and maintain a 
comprehensive Department-wide information security program to provide 
for the development and maintenance of cost-effective security controls 
needed to protect Department information, in any media or format, and 
Department information systems.
    ``(b) Elements.--The Secretary shall ensure that the Department 
information security program includes the following elements:
        ``(1) Periodic assessments of the risk and magnitude of harm 
    that could result from the unauthorized access, use, disclosure, 
    disruption, modification, or destruction of information and 
    information systems that support the operations and assets of the 
    Department.
        ``(2) Policies and procedures that--
            ``(A) are based on risk assessments;
            ``(B) cost-effectively reduce security risks to an 
        acceptable level; and
            ``(C) ensure that information security is addressed 
        throughout the life cycle of each Department information 
        system.
        ``(3) Selection and effective implementation of minimum, 
    mandatory technical, operational, and management security controls, 
    or other compensating countermeasures, to protect the 
    confidentiality, integrity, and availability of each Department 
    system and its information.
        ``(4) Subordinate plans for providing adequate security for 
    networks, facilities, systems, or groups of information systems, as 
    appropriate.
        ``(5) Annual security awareness training for all Department 
    employees, contractors, and all other users of VA sensitive data 
    and Department information systems that identifies the information 
    security risks associated with the activities of such employees, 
    contractors, and users and the responsibilities of such employees, 
    contractors, and users to comply with Department policies and 
    procedures designed to reduce such risks.
        ``(6) Periodic testing and evaluation of the effectiveness of 
    security controls based on risk, including triennial certification 
    testing of all management, operational, and technical controls, and 
    annual testing of a subset of those controls for each Department 
    system.
        ``(7) A process for planning, developing, implementing, 
    evaluating, and documenting remedial actions to address 
    deficiencies in information security policies, procedures, and 
    practices.
        ``(8) Procedures for detecting, immediately reporting, and 
    responding to security incidents, including mitigating risks before 
    substantial damage is done as well as notifying and consulting with 
    the US-Computer Emergency Readiness Team of the Department of 
    Homeland Security, law enforcement agencies, the Inspector General 
    of the Department, and other offices as appropriate.
        ``(9) Plans and procedures to ensure continuity of operations 
    for Department systems.
    ``(c) Compliance With Certain Requirements.--The Secretary shall 
comply with the provisions of subchapter III of chapter 35 of title 44 
and other related information security requirements promulgated by the 
National Institute of Standards and Technology and the Office of 
Management and Budget that define Department information system 
mandates.

``Sec. 5723. Responsibilities

    ``(a) Secretary of Veterans Affairs.--In accordance with the 
provisions of subchapter III of chapter 35 of title 44, the Secretary 
is responsible for the following:
        ``(1) Ensuring that the Department adopts a Department-wide 
    information security program and otherwise complies with the 
    provisions of subchapter III of chapter 35 of title 44 and other 
    related information security requirements.
        ``(2) Ensuring that information security protections are 
    commensurate with the risk and magnitude of the potential harm to 
    Department information and information systems resulting from 
    unauthorized access, use, disclosure, disruption, modification, or 
    destruction.
        ``(3) Ensuring that information security management processes 
    are integrated with Department strategic and operational planning 
    processes.
        ``(4) Ensuring that the Under Secretaries, Assistant 
    Secretaries, and other key officials of the Department provide 
    adequate security for the information and information systems under 
    their control.
        ``(5) Ensuring enforcement and compliance with the requirements 
    imposed on the Department under the provisions of subchapter III of 
    chapter 35 of title 44.
        ``(6) Ensuring that the Department has trained program and 
    staff office personnel sufficient to assist in complying with all 
    the provisions of subchapter III of chapter 35 of title 44 and 
    other related information security requirements.
        ``(7) Ensuring that the Assistant Secretary for Information and 
    Technology, in coordination with the Under Secretaries, Assistant 
    Secretaries, and other key officials of the Department report to 
    Congress, the Office of Management and Budget, and other entities 
    as required by law and Executive Branch direction on the 
    effectiveness of the Department information security program, 
    including remedial actions.
        ``(8) Notifying officials other than officials of the 
    Department of data breaches when required under this subchapter.
        ``(9) Ensuring that the Assistant Secretary for Information and 
    Technology has the authority and control necessary to develop, 
    approve, implement, integrate, and oversee the policies, 
    procedures, processes, activities, and systems of the Department 
    relating to subchapter III of chapter 35 of title 44, including the 
    management of all related mission applications, information 
    resources, personnel, and infrastructure.
        ``(10) Submitting to the Committees on Veterans' Affairs of the 
    Senate and House of Representatives, the Committee on Government 
    Reform of the House of Representatives, and the Committee on 
    Homeland Security and Governmental Affairs of the Senate, not later 
    than March 1 each year, a report on the compliance of the 
    Department with subchapter III of chapter 35 of title 44, with the 
    information in such report displayed in the aggregate and 
    separately for each Administration, office, and facility of the 
    Department.
        ``(11) Taking appropriate action to ensure that the budget for 
    any fiscal year, as submitted by the President to Congress under 
    section 1105 of title 31, sets forth separately the amounts 
    required in the budget for such fiscal year for compliance by the 
    Department with Federal law and regulations governing information 
    security, including this subchapter and subchapter III of chapter 
    35 of title 44.
        ``(12) Providing notice to the Director of the Office of 
    Management and Budget, the Inspector General of the Department, and 
    such other Federal agencies as the Secretary considers appropriate 
    of a presumptive data breach of which notice is provided the 
    Secretary under subsection (b)(16) if, in the opinion of the 
    Assistant Secretary for Information and Technology, the breach 
    involves the information of twenty or more individuals.
    ``(b) Assistant Secretary for Information and Technology.--The 
Assistant Secretary for Information and Technology, as the Chief 
Information Officer of the Department, is responsible for the 
following:
        ``(1) Establishing, maintaining, and monitoring Department-wide 
    information security policies, procedures, control techniques, 
    training, and inspection requirements as elements of the Department 
    information security program.
        ``(2) Issuing policies and handbooks to provide direction for 
    implementing the elements of the information security program to 
    all Department organizations.
        ``(3) Approving all policies and procedures that are related to 
    information security for those areas of responsibility that are 
    currently under the management and the oversight of other 
    Department organizations.
        ``(4) Ordering and enforcing Department-wide compliance with 
    and execution of any information security policy.
        ``(5) Establishing minimum mandatory technical, operational, 
    and management information security control requirements for each 
    Department system, consistent with risk, the processes identified 
    in standards of the National Institute of Standards and Technology, 
    and the responsibilities of the Assistant Secretary to operate and 
    maintain all Department systems currently creating, processing, 
    collecting, or disseminating data on behalf of Department 
    information owners.
        ``(6) Establishing standards for access to Department 
    information systems by organizations and individual employees, and 
    to deny access as appropriate.
        ``(7) Directing that any incidents of failure to comply with 
    established information security policies be immediately reported 
    to the Assistant Secretary.
        ``(8) Reporting any compliance failure or policy violation 
    directly to the appropriate Under Secretary, Assistant Secretary, 
    or other key official of the Department for appropriate 
    administrative or disciplinary action.
        ``(9) Reporting any compliance failure or policy violation 
    directly to the appropriate Under Secretary, Assistant Secretary, 
    or other key official of the Department along with taking action to 
    correct the failure or violation.
        ``(10) Requiring any key official of the Department who is so 
    notified to report to the Assistant Secretary with respect to an 
    action to be taken in response to any compliance failure or policy 
    violation reported by the Assistant Secretary.
        ``(11) Ensuring that the Chief Information Officers and 
    Information Security Officers of the Department comply with all 
    cyber security directives and mandates, and ensuring that these 
    staff members have all necessary authority and means to direct full 
    compliance with such directives and mandates relating to the 
    acquisition, operation, maintenance, or use of information 
    technology resources from all facility staff.
        ``(12) Establishing the VA National Rules of Behavior for 
    appropriate use and protection of the information which is used to 
    support Department missions and functions.
        ``(13) Establishing and providing supervision over an effective 
    incident reporting system.
        ``(14) Submitting to the Secretary, at least once every 
    quarter, a report on any deficiency in the compliance with 
    subchapter III of chapter 35 of title 44 of the Department or any 
    Administration, office, or facility of the Department.
        ``(15) Reporting immediately to the Secretary on any 
    significant deficiency in the compliance described by paragraph 
    (14).
        ``(16) Providing immediate notice to the Secretary of any 
    presumptive data breach.
    ``(c) Associate Deputy Assistant Secretary for Cyber and 
Information Security.--In accordance with the provisions of subchapter 
III of chapter 35 of title 44, the Associate Deputy Assistant Secretary 
for Cyber and Information Security, as the Senior Information Security 
Officer of the Department, is responsible for carrying out the 
responsibilities of the Assistant Secretary for Information and 
Technology under the provisions of subchapter III of chapter 35 of 
title 44, as set forth in subsection (b).
    ``(d) Department Information Owners.--In accordance with the 
criteria of the Centralized IT Management System, Department 
information owners are responsible for the following:
        ``(1) Providing assistance to the Assistant Secretary for 
    Information and Technology regarding the security requirements and 
    appropriate level of security controls for the information system 
    or systems where sensitive personal information is currently 
    created, collected, processed, disseminated, or subject to 
    disposal.
        ``(2) Determining who has access to the system or systems 
    containing sensitive personal information, including types of 
    privileges and access rights.
        ``(3) Ensuring the VA National Rules of Behavior is signed on 
    an annual basis and enforced by all system users to ensure 
    appropriate use and protection of the information which is used to 
    support Department missions and functions.
        ``(4) Assisting the Assistant Secretary for Information and 
    Technology in the identification and assessment of the common 
    security controls for systems where their information resides.
        ``(5) Providing assistance to Administration and staff office 
    personnel involved in the development of new systems regarding the 
    appropriate level of security controls for their information.
    ``(e) Other Key Officials.--In accordance with the provisions of 
subchapter III of chapter 35 of title 44, the Under Secretaries, 
Assistant Secretaries, and other key officials of the Department are 
responsible for the following:
        ``(1) Implementing the policies, procedures, practices, and 
    other countermeasures identified in the Department information 
    security program that comprise activities that are under their day-
    to-day operational control or supervision.
        ``(2) Periodically testing and evaluating information security 
    controls that comprise activities that are under their day-to-day 
    operational control or supervision to ensure effective 
    implementation.
        ``(3) Providing a plan of action and milestones to the 
    Assistant Secretary for Information and Technology on at least a 
    quarterly basis detailing the status of actions being taken to 
    correct any security compliance failure or policy violation.
        ``(4) Complying with the provisions of subchapter III of 
    chapter 35 of title 44 and other related information security laws 
    and requirements in accordance with orders of the Assistant 
    Secretary for Information and Technology to execute the appropriate 
    security controls commensurate to responding to a security bulletin 
    of the Security Operations Center of the Department, with such 
    orders to supersede and take priority over all operational tasks 
    and assignments and be complied with immediately.
        ``(5) Ensuring that--
            ``(A) all employees within their organizations take 
        immediate action to comply with orders from the Assistant 
        Secretary for Information and Technology to--
                ``(i) mitigate the impact of any potential security 
            vulnerability;
                ``(ii) respond to a security incident; or
                ``(iii) implement the provisions of a bulletin or alert 
            of the Security Operations Center; and
            ``(B) organizational managers have all necessary authority 
        and means to direct full compliance with such orders from the 
        Assistant Secretary.
        ``(6) Ensuring the VA National Rules of Behavior is signed and 
    enforced by all system users to ensure appropriate use and 
    protection of the information which is used to support Department 
    missions and functions on an annual basis.
    ``(f) Users of Department Information and Information Systems.--
Users of Department information and information systems are responsible 
for the following:
        ``(1) Complying with all Department information security 
    program policies, procedures, and practices.
        ``(2) Attending security awareness training on at least an 
    annual basis.
        ``(3) Reporting all security incidents immediately to the 
    Information Security Officer of the system or facility and to their 
    immediate supervisor.
        ``(4) Complying with orders from the Assistant Secretary for 
    Information and Technology directing specific activities when a 
    security incident occurs.
        ``(5) Signing an acknowledgment that they have read, 
    understand, and agree to abide by the VA National Rules of Behavior 
    on an annual basis.
    ``(g) Inspector General of Department of Veterans Affairs.--In 
accordance with the provisions of subchapter III of chapter 35 of title 
44, the Inspector General of the Department is responsible for the 
following:
        ``(1) Conducting an annual audit of the Department information 
    security program.
        ``(2) Submitting an independent annual report to the Office of 
    Management and Budget on the status of Department information 
    security program, based on the results of the annual audit.
        ``(3) Conducting investigations of complaints and referrals of 
    violations as considered appropriate by the Inspector General.

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

    ``(a) Independent Risk Analysis.--(1) In the event of a data breach 
with respect to sensitive personal information that is processed or 
maintained by the Secretary, the Secretary shall ensure that, as soon 
as possible after the data breach, a non-Department entity or the 
Office of Inspector General of the Department conducts an independent 
risk analysis of the data breach to determine the level of risk 
associated with the data breach for the potential misuse of any 
sensitive personal information involved in the data breach.
    ``(2) If the Secretary determines, based on the findings of a risk 
analysis conducted under paragraph (1), that a reasonable risk exists 
for the potential misuse of sensitive personal information involved in 
a data breach, the Secretary shall provide credit protection services 
in accordance with the regulations prescribed by the Secretary under 
this section.
    ``(b) Regulations.--Not later than 180 days after the date of the 
enactment of the Veterans Benefits, Health Care, and Information 
Technology Act of 2006, the Secretary shall prescribe interim 
regulations for the provision of the following in accordance with 
subsection (a)(2):
        ``(1) Notification.
        ``(2) Data mining.
        ``(3) Fraud alerts.
        ``(4) Data breach analysis.
        ``(5) Credit monitoring.
        ``(6) Identity theft insurance.
        ``(7) Credit protection services.
    ``(c) Report.--(1) For each data breach with respect to sensitive 
personal information processed or maintained by the Secretary, the 
Secretary shall promptly submit to the Committees on Veterans' Affairs 
of the Senate and House of Representatives a report containing the 
findings of any independent risk analysis conducted under subsection 
(a)(1), any determination of the Secretary under subsection (a)(2), and 
a description of any services provided pursuant to subsection (b).
    ``(2) In the event of a data breach with respect to sensitive 
personal information processed or maintained by the Secretary that is 
the sensitive personal information of a member of the Army, Navy, Air 
Force, or Marine Corps or a civilian officer or employee of the 
Department of Defense, the Secretary shall submit the report required 
under paragraph (1) to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives in 
addition to the Committees on Veterans' Affairs of the Senate and House 
of Representatives.

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

    ``(a) Contract Requirements.--If the Secretary enters into a 
contract for the performance of any Department function that requires 
access to sensitive personal information, the Secretary shall require 
as a condition of the contract that--
        ``(1) the contractor shall not, directly or through an 
    affiliate of the contractor, disclose such information to any other 
    person unless the disclosure is lawful and is expressly permitted 
    under the contract;
        ``(2) the contractor, or any subcontractor for a subcontract of 
    the contract, shall promptly notify the Secretary of any data 
    breach that occurs with respect to such information.
    ``(b) Liquidated Damages.--Each contract subject to the 
requirements of subsection (a) shall provide for liquidated damages to 
be paid by the contractor to the Secretary in the event of a data 
breach with respect to any sensitive personal information processed or 
maintained by the contractor or any subcontractor under that contract.
    ``(c) Provision of Credit Protection Services.--Any amount 
collected by the Secretary under subsection (b) shall be deposited in 
or credited to the Department account from which the contractor was 
paid and shall remain available for obligation without fiscal year 
limitation exclusively for the purpose of providing credit protection 
services pursuant to section 5724(b) of this title.

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

    ``(a) Quarterly Reports.--(1) Not later than 30 days after the last 
day of a fiscal quarter, the Secretary shall submit to the Committees 
on Veterans' Affairs of the Senate and House of Representatives a 
report on any data breach with respect to sensitive personal 
information processed or maintained by the Department that occurred 
during that quarter.
    ``(2) Each report submitted under paragraph (1) shall identify, for 
each data breach covered by the report--
        ``(A) the Administration and facility of the Department 
    responsible for processing or maintaining the sensitive personal 
    information involved in the data breach; and
        ``(B) the status of any remedial or corrective action with 
    respect to the data breach.
    ``(b) Notification of Significant Data Breaches.--(1) In the event 
of a data breach with respect to sensitive personal information 
processed or maintained by the Secretary that the Secretary determines 
is significant, the Secretary shall provide notice of such breach to 
the Committees on Veterans' Affairs of the Senate and House of 
Representatives.
    ``(2) In the event of a data breach with respect to sensitive 
personal information processed or maintained by the Secretary that is 
the sensitive personal information of a member of the Army, Navy, Air 
Force, or Marine Corps or a civilian officer or employee of the 
Department of Defense that the Secretary determines is significant 
under paragraph (1), the Secretary shall provide the notice required 
under paragraph (1) to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives in 
addition to the Committees on Veterans' Affairs of the Senate and House 
of Representatives.
    ``(3) Notice under paragraphs (1) and (2) shall be provided 
promptly following the discovery of such a data breach and the 
implementation of any measures necessary to determine the scope of the 
breach, prevent any further breach or unauthorized disclosures, and 
reasonably restore the integrity of the data system.

``Sec. 5727. Definitions

    ``In this subchapter:
        ``(1) Availability.--The term `availability' means ensuring 
    timely and reliable access to and use of information.
        ``(2) Confidentiality.--The term `confidentiality' means 
    preserving authorized restrictions on access and disclosure, 
    including means for protecting personal privacy and proprietary 
    information.
        ``(3) Control techniques.--The term `control techniques' means 
    methods for guiding and controlling the operations of information 
    systems to ensure adherence to the provisions of subchapter III of 
    chapter 35 of title 44 and other related information security 
    requirements.
        ``(4) Data breach.--The term `data breach' means the loss, 
    theft, or other unauthorized access, other than those incidental to 
    the scope of employment, to data containing sensitive personal 
    information, in electronic or printed form, that results in the 
    potential compromise of the confidentiality or integrity of the 
    data.
        ``(5) Data breach analysis.--The term `data breach analysis' 
    means the process used to determine if a data breach has resulted 
    in the misuse of sensitive personal information.
        ``(6) Fraud resolution systems.--The term `fraud resolution 
    services' means services to assist an individual in the process of 
    recovering and rehabilitating the credit of the individual after 
    the individual experiences identity theft.
        ``(7) Identity theft.--The term `identity theft' has the 
    meaning given such term under section 603 of the Fair Credit 
    Reporting Act (15 U.S.C. 1681a).
        ``(8) Identity theft insurance.--The term `identity theft 
    insurance' means any insurance policy that pays benefits for costs, 
    including travel costs, notary fees, and postage costs, lost wages, 
    and legal fees and expenses associated with efforts to correct and 
    ameliorate the effects and results of identity theft of the insured 
    individual.
        ``(9) Information owner.--The term `information owner' means an 
    agency official with statutory or operational authority for 
    specified information and responsibility for establishing the 
    criteria for its creation, collection, processing, dissemination, 
    or disposal, which responsibilities may extend to interconnected 
    systems or groups of interconnected systems.
        ``(10) Information resources.--The term `information resources' 
    means information in any medium or form and its related resources, 
    such as personnel, equipment, funds, and information technology.
        ``(11) Information security.--The term `information security' 
    means protecting information and information systems from 
    unauthorized access, use, disclosure, disruption, modification, or 
    destruction in order to provide integrity, confidentiality, and 
    availability.
        ``(12) Information security requirements.--The term 
    `information security requirements' means information security 
    requirements promulgated in accordance with law, or directed by the 
    Secretary of Commerce, the National Institute of Standards and 
    Technology, and the Office of Management and Budget, and, as to 
    national security systems, the President.
        ``(13) Information system.--The term `information system' means 
    a discrete set of information resources organized for the 
    collection, processing, maintenance, use, sharing, dissemination, 
    or disposition of information, whether automated or manual.
        ``(14) Integrity.--The term `integrity' means guarding against 
    improper information modification or destruction, and includes 
    ensuring information non-repudiation and authenticity.
        ``(15) National security system.--The term `national security 
    system' means an information system that is protected at all times 
    by policies and procedures established for the processing, 
    maintenance, use, sharing, dissemination or disposition of 
    information that has been specifically authorized under criteria 
    established by statute or Executive Order to be kept classified in 
    the interest of national defense or foreign policy.
        ``(16) Plan of action and milestones.--The term `plan of action 
    and milestones', means a plan used as a basis for the quarterly 
    reporting requirements of the Office of Management and Budget that 
    includes the following information:
            ``(A) A description of the security weakness.
            ``(B) The identity of the office or organization 
        responsible for resolving the weakness.
            ``(C) An estimate of resources required to resolve the 
        weakness by fiscal year.
            ``(D) The scheduled completion date.
            ``(E) Key milestones with estimated completion dates.
            ``(F) Any changes to the original key milestone date.
            ``(G) The source that identified the weakness.
            ``(H) The status of efforts to correct the weakness.
        ``(17) Principal credit reporting agency.--The term `principal 
    credit reporting agency' means a consumer reporting agency as 
    described in section 603(p) of the Fair Credit Reporting Act (15 
    U.S.C. 1681a(p)).
        ``(18) Security incident.--The term `security incident' means 
    an event that has, or could have, resulted in loss or damage to 
    Department assets, or sensitive information, or an action that 
    breaches Department security procedures.
        ``(19) Sensitive personal information.--The term `sensitive 
    personal information', with respect to an individual, means any 
    information about the individual maintained by an agency, including 
    the following:
            ``(A) Education, financial transactions, medical history, 
        and criminal or employment history.
            ``(B) Information that can be used to distinguish or trace 
        the individual's identity, including name, social security 
        number, date and place of birth, mother's maiden name, or 
        biometric records.
        ``(20) Subordinate plan.--The term `subordinate plan', also 
    referred to as a `system security plan', means a subordinate plan 
    defines the security controls that are either planned or 
    implemented for networks, facilities, systems, or groups of 
    systems, as appropriate, within a specific accreditation boundary.
        ``(21) Training.--The term `training' means a learning 
    experience in which an individual is taught to execute a specific 
    information security procedure or understand the information 
    security common body of knowledge.
        ``(22) Va national rules of behavior.--The term `VA National 
    Rules of Behavior' means a set of Department rules that describes 
    the responsibilities and expected behavior of personnel with regard 
    to information system usage.
        ``(23) Va sensitive data.--The term `VA sensitive data' means 
    all Department data, on any storage media or in any form or format, 
    which requires protection due to the risk of harm that could result 
    from inadvertent or deliberate disclosure, alteration, or 
    destruction of the information and includes information whose 
    improper use or disclosure could adversely affect the ability of an 
    agency to accomplish its mission, proprietary information, and 
    records about individuals requiring protection under applicable 
    confidentiality provisions.

``Sec. 5728. Authorization of appropriations

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

                  ``SUBCHAPTER III--Information Security

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

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

SEC. 903. INFORMATION SECURITY EDUCATION ASSISTANCE PROGRAMS.

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

    ``CHAPTER 79--INFORMATION SECURITY EDUCATION ASSISTANCE PROGRAM

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

``Sec. 7901. Programs; purpose

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

``Sec. 7902. Scholarship program

    ``(a) Authority.--(1) Subject to the availability of 
appropriations, the Secretary may establish a scholarship program under 
which the Secretary shall, subject to subsection (d), provide financial 
assistance in accordance with this section to a qualified person--
        ``(A) who is pursuing a doctoral degree in computer science or 
    electrical or computer engineering at an accredited institution of 
    higher education; and
        ``(B) who enters into an agreement with the Secretary as 
    described in subsection (b).
    ``(2)(A) Except as provided in subparagraph (B), the Secretary may 
provide financial assistance under this section to an individual for up 
to five years.
    ``(B) The Secretary may waive the limitation under subparagraph (A) 
if the Secretary determines that such a waiver is appropriate.
    ``(b) Service Agreement for Scholarship Recipients.--(1) To receive 
financial assistance under this section an individual shall enter into 
an agreement to accept and continue employment in the Department for 
the period of obligated service determined under paragraph (2).
    ``(2) For the purposes of this subsection, the period of obligated 
service for a recipient of financial assistance under this section 
shall be the period determined by the Secretary as being appropriate to 
obtain adequate service in exchange for the financial assistance and 
otherwise to achieve the goals set forth in section 7901(a) of this 
title. In no event may the period of service required of a recipient be 
less than the period equal to the total period of pursuit of a degree 
for which the Secretary agrees to provide the recipient with financial 
assistance under this section. The period of obligated service is in 
addition to any other period for which the recipient is obligated to 
serve on active duty or in the civil service, as the case may be.
    ``(3) An agreement entered into under this section by a person 
pursuing a doctoral degree shall include terms that provide the 
following:
        ``(A) That the period of obligated service begins on a date 
    after the award of the degree that is determined under the 
    regulations prescribed under section 7906 of this title.
        ``(B) That the individual will maintain satisfactory academic 
    progress, as determined in accordance with those regulations, and 
    that failure to maintain such progress constitutes grounds for 
    termination of the financial assistance for the individual under 
    this section.
        ``(C) Any other terms and conditions that the Secretary 
    determines appropriate for carrying out this section.
    ``(c) Amount of Assistance.--(1) The amount of the financial 
assistance provided for an individual under this section shall be the 
amount determined by the Secretary as being necessary to pay--
        ``(A) the tuition and fees of the individual; and
        ``(B) $1,500 to the individual each month (including a month 
    between academic semesters or terms leading to the degree for which 
    such assistance is provided or during which the individual is not 
    enrolled in a course of education but is pursuing independent 
    research leading to such degree) for books, laboratory expenses, 
    and expenses of room and board.
    ``(2) In no case may the amount of assistance provided for an 
individual under this section for an academic year exceed $50,000.
    ``(3) In no case may the total amount of assistance provided for an 
individual under this section exceed $200,000.
    ``(4) Notwithstanding any other provision of law, financial 
assistance paid an individual under this section shall not be 
considered as income or resources in determining eligibility for, or 
the amount of benefits under, any Federal or federally assisted 
program.
    ``(d) Repayment for Period of Unserved Obligated Service.--(1) An 
individual who receives financial assistance under this section shall 
repay to the Secretary an amount equal to the unearned portion of the 
financial assistance if the individual fails to satisfy the 
requirements of the service agreement entered into under subsection 
(b), except in circumstances authorized by the Secretary.
    ``(2) The Secretary may establish, by regulations, procedures for 
determining the amount of the repayment required under this subsection 
and the circumstances under which an exception to the required 
repayment may be granted.
    ``(3) An obligation to repay the Secretary under this subsection 
is, for all purposes, a debt owed the United States. A discharge in 
bankruptcy under title 11 does not discharge a person from such debt if 
the discharge order is entered less than five years after the date of 
the termination of the agreement or contract on which the debt is 
based.
    ``(e) Waiver or Suspension of Compliance.--The Secretary shall 
prescribe regulations providing for the waiver or suspension of any 
obligation of an individual for service or payment under this section 
(or an agreement under this section) whenever noncompliance by the 
individual is due to circumstances beyond the control of the individual 
or whenever the Secretary determines that the waiver or suspension of 
compliance is in the best interest of the United States.
    ``(f) Internships.--(1) The Secretary may offer a compensated 
internship to an individual for whom financial assistance is provided 
under this section during a period between academic semesters or terms 
leading to the degree for which such assistance is provided. 
Compensation provided for such an internship shall be in addition to 
the financial assistance provided under this section.
    ``(2) An internship under this subsection shall not be counted 
toward satisfying a period of obligated service under this section.
    ``(g) Ineligibility of Individuals Receiving Montgomery GI Bill 
Education Assistance Payments.--An individual who receives a payment of 
educational assistance under chapter 30, 31, 32, 34, or 35 of this 
title or chapter 1606 or 1607 of title 10 for a month in which the 
individual is enrolled in a course of education leading to a doctoral 
degree in information security is not eligible to receive financial 
assistance under this section for that month.

``Sec. 7903. Education debt reduction program

    ``(a) Authority.--Subject to the availability of appropriations, 
the Secretary may establish an education debt reduction program under 
which the Secretary shall make education debt reduction payments under 
this section to qualified individuals eligible under subsection (b) for 
the purpose of reimbursing such individuals for payments by such 
individuals of principal and interest on loans described in paragraph 
(2) of that subsection.
    ``(b) Eligibility.--An individual is eligible to participate in the 
program under this section if the individual--
        ``(1) has completed a doctoral degree in computer science or 
    electrical or computer engineering at an accredited institution of 
    higher education during the five-year period preceding the date on 
    which the individual is hired;
        ``(2) is an employee of the Department who serves in a position 
    related to information security (as determined by the Secretary); 
    and
        ``(3) owes any amount of principal or interest under a loan, 
    the proceeds of which were used by or on behalf of that individual 
    to pay costs relating to a doctoral degree in computer science or 
    electrical or computer engineering at an accredited institution of 
    higher education.
    ``(c) Amount of Assistance.--(1) Subject to paragraph (2), the 
amount of education debt reduction payments made to an individual under 
this section may not exceed $82,500 over a total of five years, of 
which not more than $16,500 of such payments may be made in each year.
    ``(2) The total amount payable to an individual under this section 
for any year may not exceed the amount of the principal and interest on 
loans referred to in subsection (b)(3) that is paid by the individual 
during such year.
    ``(d) Payments.--(1) The Secretary shall make education debt 
reduction payments under this section on an annual basis.
    ``(2) The Secretary shall make such a payment--
        ``(A) on the last day of the one-year period beginning on the 
    date on which the individual is accepted into the program 
    established under subsection (a); or
        ``(B) in the case of an individual who received a payment under 
    this section for the preceding fiscal year, on the last day of the 
    one-year period beginning on the date on which the individual last 
    received such a payment.
    ``(3) Notwithstanding any other provision of law, education debt 
reduction payments under this section shall not be considered as income 
or resources in determining eligibility for, or the amount of benefits 
under, any Federal or federally assisted program.
    ``(e) Performance Requirement.--The Secretary may make education 
debt reduction payments to an individual under this section for a year 
only if the Secretary determines that the individual maintained an 
acceptable level of performance in the position or positions served by 
the individual during the year.
    ``(f) Notification of Terms of Provision of Payments.--The 
Secretary shall provide to an individual who receives a payment under 
this section notice in writing of the terms and conditions that apply 
to such a payment.
    ``(g) Covered Costs.--For purposes of subsection (b)(3), costs 
relating to a course of education or training include--
        ``(1) tuition expenses; and
        ``(2) all other reasonable educational expenses, including 
    fees, books, and laboratory expenses.

``Sec. 7904. Preferences in awarding financial assistance

    ``In awarding financial assistance under this chapter, the 
Secretary shall give a preference to qualified individuals who are 
otherwise eligible to receive the financial assistance in the following 
order of priority:
        ``(1) Veterans with service-connected disabilities.
        ``(2) Veterans.
        ``(3) Persons described in section 4215(a)(1)(B) of this title.
        ``(4) Individuals who received or are pursuing degrees at 
    institutions designated by the National Security Agency as Centers 
    of Academic Excellence in Information Assurance Education.
        ``(5) Citizens of the United States.

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

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

``Sec. 7906. Regulations

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

``Sec. 7907. Termination

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

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

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

                         TITLE X--OTHER MATTERS

SEC. 1001. NOTICE TO CONGRESSIONAL VETERANS COMMITTEES OF CERTAIN 
              TRANSFERS OF FUNDS.

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

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

    (a) Payment of Pension During Confinement in Penal Institutions.--
Section 1505(a) is amended by striking ``or local penal institution'' 
and inserting ``local, or other penal institution or correctional 
facility''.
    (b) Allowances for Training and Rehabilitation for Veterans With 
Service-Connected Disabilities.--Section 3108(g)(1) is amended by 
striking ``or local penal institution'' and inserting ``local, or other 
penal institution or correctional facility''.
    (c) Educational Assistance Benefits for Post-Vietnam Era 
Veterans.--Section 3231(d)(1) is amended by striking ``or local penal 
institution'' and inserting ``local, or other penal institution or 
correctional facility''.
    (d) Computation of Educational Assistance Allowances for Veterans 
Generally.--Section 3482(g)(1) is amended by striking ``or local penal 
institution'' and inserting ``local, or other penal institution or 
correctional facility''.
    (e) Computation of Educational Assistance Allowance for Survivors 
and Dependents.--Section 3532(e) is amended by striking ``or local 
penal institution'' and inserting ``local, or other penal institution 
or correctional facility''.
    (f) Limitation on Payment of Compensation and Dependency and 
Indemnity Compensation.--Section 5313 is amended by striking ``or local 
penal institution'' each place it appears and inserting ``local, or 
other penal institution or correctional facility''.
    (g) Limitation on Payment of Clothing Allowance.--Section 5313A is 
amended by striking ``or local penal institution'' and inserting 
``local, or other penal institution or correctional facility''.

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

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

SEC. 1004. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 38, United States Code.--
        (1) Citation correction.--Section 1718(c)(2) is amended by 
    inserting ``of 1938'' after ``Act''.
        (2) Citation correction.--Section 1785(b)(1) is amended by 
    striking ``Robert B.'' and inserting ``Robert T.''.
        (3) Punctuation correction.--Section 2002(1) is amended by 
    inserting a closing parenthesis before the period at the end.
        (4) Punctuation correction.--Section 2011(a)(1)(C) is amended 
    by inserting a period at the end.
        (5) Cross reference correction.--Section 2041(a)(3)(A)(i) is 
    amended by striking ``under this chapter'' and inserting 
    ``established under section 3722 of this title''.
        (6) Citation correction.--Section 8111(b)(1) is amended by 
    striking ``into the strategic'' and all that follows through ``and 
    Results Act of 1993'' and inserting ``into the strategic plan of 
    each Department under section 306 of title 5 and the performance 
    plan of each Department under section 1115 of title 31''.
        (7) Repeal of obsolete text.--Section 8111 is further amended--
            (A) in subsection (d)(2), by striking ``effective October 
        1, 2003,''; and
            (B) in subsection (e)(2)--
                (i) in the second sentence, by striking ``shall be 
            implemented no later than October 1, 2003, and''; and
                (ii) in the third sentence, by striking ``, following 
            implementation of the schedule,''.
        (8) Citation correction.--Section 8111A(a)(2)(B)(i) is amended 
    by striking ``Robert B.'' and inserting ``Robert T.''.
    (b) Public Law 107-296.--Effective as of November 25, 2002, section 
1704(d) of the Homeland Security Act of 2002 (Public Law 107-296; 116 
Stat. 2315) is amended--
        (1) by striking ``101(25)(d)'' and inserting ``101(25)(D)''; 
    and
        (2) by striking ``3011(a)(1)(A)(ii)(II)'' and inserting 
    ``3011(a)(1)(A)(ii)(III)''.

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

    (a) Veterans' Disability Compensation.--Section 1114 is amended--
        (1) in subsection (a), by striking ``$112'' and inserting 
    ``$115'';
        (2) in subsection (b), by striking ``$218'' and inserting 
    ``$225'';
        (3) in subsection (c), by striking ``$337'' and inserting 
    ``$348'';
        (4) in subsection (d), by striking ``$485'' and inserting 
    ``$501'';
        (5) in subsection (e), by striking ``$690'' and inserting 
    ``$712'';
        (6) in subsection (f), by striking ``$873'' and inserting 
    ``$901'';
        (7) in subsection (g), by striking ``$1,099'' and inserting 
    ``$1,135'';
        (8) in subsection (h), by striking ``$1,277'' and inserting 
    ``$1,319'';
        (9) in subsection (i), by striking ``$1,436'' and inserting 
    ``$1,483'';
        (10) in subsection (j), by striking ``$2,393'' and inserting 
    ``$2,471'';
        (11) in subsection (k)--
            (A) by striking ``$87'' both places it appears and 
        inserting ``$89''; and
            (B) by striking ``$2,977'' and ``$4,176'' and inserting 
        ``$3,075'' and ``$4,313'', respectively;
        (12) in subsection (l), by striking ``$2,977'' and inserting 
    ``$3,075'';
        (13) in subsection (m), by striking ``$3,284'' and inserting 
    ``$3,392'';
        (14) in subsection (n), by striking ``$3,737'' and inserting 
    ``$3,860'';
        (15) in subsections (o) and (p), by striking ``$4,176'' each 
    place it appears and inserting ``$4,313'';
        (16) in subsection (r)--
            (A) in paragraph (1), by striking ``$1,792'' and inserting 
        ``$1,851''; and
            (B) in paragraph (2), by striking ``2,669'' and inserting 
        ``$2,757''; and
        (17) in subsection (s), by striking ``$2,678'' and inserting 
    ``$2,766''.
    (b) Additional Compensation for Dependents.--Section 1115(1) is 
amended--
        (1) in subparagraph (A), by striking ``$135'' and inserting 
    ``$139'';
        (2) in subparagraph (B), by striking ``$233'' and ``$68'' and 
    inserting ``$240'' and ``$70'', respectively;
        (3) in subparagraph (C), by striking ``$91'' and ``$68'' and 
    inserting ``$94'' and ``$70'', respectively;
        (4) in subparagraph (D), by striking ``$109'' and inserting 
    ``$112'';
        (5) in subparagraph (E), by striking ``$257'' and inserting 
    ``$265''; and
        (6) in subparagraph (F), by striking ``$215'' and inserting 
    ``$222''.
    (c) Clothing Allowance for Certain Disabled Veterans.--Section 1162 
is amended by striking ``$641'' and inserting ``$662''.
    (d) Dependency and Indemnity Compensation for Surviving Spouses.--
        (1) New law dic.--Subsection (a) of section 1311 is amended--
            (A) in paragraph (1), by striking ``$1,033'' and inserting 
        ``$1,067''; and
            (B) in paragraph (2), by striking ``$221'' and inserting 
        ``$228''.
        (2) Old law dic.--The table in paragraph (3) of such subsection 
    is amended to read as follows:

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

        (3) Additional dic for children or disability.--Such section is 
    further amended--
            (A) in subsection (b), by striking ``$257'' and inserting 
        ``$265'';
            (B) in subsection (c), by striking ``$257'' and inserting 
        ``$265''; and
            (C) in subsection (d), by striking ``$122'' and inserting 
        ``$126''.
    (e) Dependency and Indemnity Compensation for Children.--
        (1) DIC when no surviving spouse.--Section 1313(a) is amended--
            (A) in paragraph (1), by striking ``$438'' and inserting 
        ``$452'';
            (B) in paragraph (2), by striking ``$629'' and inserting 
        ``$649'';
            (C) in paragraph (3), by striking ``$819'' and inserting 
        ``$846''; and
            (D) in paragraph (4), by striking ``$819'' and ``$157'' and 
        inserting ``$846'' and ``$162'', respectively.
        (2) Supplemental dic for certain children.--Section 1314 is 
    amended--
            (A) in subsection (a), by striking ``$257'' and inserting 
        ``$265'';
            (B) in subsection (b), by striking ``$438'' and inserting 
        ``$452''; and
            (C) in subsection (c), by striking ``$218'' and inserting 
        ``$225''.

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

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

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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