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.
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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.
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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;
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‘‘(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:
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‘‘(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—
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(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
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(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.
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(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 postdeployment 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—
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(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
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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.
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(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.—
S. 3421—12

(1) IN GENERAL.—Subchapter II of chapter 73 is amended

by adding at the end the following new sections:

‘‘§ 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 healthcare 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.
S. 3421—13

‘‘(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
S. 3421—14

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.

‘‘§ 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 healthcare 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
S. 3421—15

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 stateof-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
S. 3421—16

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:

‘‘§ 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—
S. 3421—17

‘‘(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:
S. 3421—18

‘‘(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:

‘‘§ 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—
S. 3421—19

‘‘(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:

‘‘§ 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.’’.
S. 3421—20

(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 healthcare 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
S. 3421—21

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.
S. 3421—22

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.
S. 3421—23

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)—
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(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
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(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.
S. 3421—26

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 GOVERNMENTSPONSORED 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
S. 3421—27

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)—
S. 3421—28

(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-ofkin of record for Russell Wayne Wagner or, if the next-of-
S. 3421—29

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:

‘‘§ 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
S. 3421—30

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 serviceconnected 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).
S. 3421—31

‘‘(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 serviceconnected 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 VETERANOWNER.—(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:
S. 3421—32

‘‘(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.’’.
S. 3421—33

(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:

‘‘§ 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
S. 3421—34

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
S. 3421—35

(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 halftime 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 halftime 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:
S. 3421—36

‘‘§ 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, privatesector 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.’’.
S. 3421—37

(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;
S. 3421—38

(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):
S. 3421—39

‘‘(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.’’.
S. 3421—40

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.
S. 3421—41

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.
S. 3421—42

(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 colocated 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 colocated, 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.
S. 3421—43

(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
S. 3421—44

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:

‘‘§ 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:
S. 3421—45

‘‘(A) Development and updating of short-range and longrange 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
S. 3421—46

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.
S. 3421—47

(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.
S. 3421—48

(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

‘‘§ 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)).

‘‘§ 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
S. 3421—49

‘‘(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.

‘‘§ 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 Departmentwide 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.
S. 3421—50

‘‘(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,
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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.
S. 3421—52

‘‘(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-today 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
S. 3421—53

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.

‘‘§ 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
S. 3421—54

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.

‘‘§ 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.
S. 3421—55

‘‘(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.

‘‘§ 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.

‘‘§ 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.
S. 3421—56

‘‘(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
S. 3421—57

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.
S. 3421—58

‘‘§ 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.

‘‘§ 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.

‘‘§ 7902. Scholarship program

‘‘(a) AUTHORITY.—(1) Subject to the availability of appropriations, the Secretary may establish a scholarship program under
S. 3421—59

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.
S. 3421—60

‘‘(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.

‘‘§ 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.
S. 3421—61

‘‘(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.

‘‘§ 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:
S. 3421—62

‘‘(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.

‘‘§ 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.

‘‘§ 7906. Regulations

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

‘‘§ 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
S. 3421—63

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)—
S. 3421—64

(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’’.
S. 3421—65

(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’’;
S. 3421—66

(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 CHIL- DREN.— (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.