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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 606 Introduced in House (IH)]

106th CONGRESS
  1st Session
                                H. R. 606

To amend titles 5, 10, and 38, United States Code, to make improvements 
in benefits and services for members and veterans of the United States 
      Armed Forces recommended by the Congressional Commission on 
   Servicemembers and Veterans Transition Assistance, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 1999

Mr. Stump (for himself and Mr. Evans) (both by request) introduced the 
   following bill; which was referred to the Committee on Veterans' 
   Affairs, and in addition to the Committees on Armed Services, and 
 Government Reform, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To amend titles 5, 10, and 38, United States Code, to make improvements 
in benefits and services for members and veterans of the United States 
      Armed Forces recommended by the Congressional Commission on 
   Servicemembers and Veterans Transition Assistance, 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 ``Servicemembers and 
Veterans Transition Services Improvement Act of 1999''.
    (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 the United States Code.-----
                           TITLE I--EDUCATION

Sec. 101. Montgomery GI Bill enhancements.-----
Sec. 102. Reengineering of approval process for VA-funded education 
                            programs.
                   TITLE II--EMPLOYMENT AND TRAINING

Sec. 201. Updating and improvement of job counseling, training, and 
                            placement services.
Sec. 202. Vocational rehabilitation for service-disabled veterans.---
Sec. 203. Transition Assistance Program funding.----
Sec. 204. Timing of preseparation counseling.-----
Sec. 205. Elimination of inequity in transitional benefits for 
                            involuntary separatees.
Sec. 206. Department of Veterans Affairs support of transition 
                            assistance. -
Sec. 207. Priorities for employment services.-----
Sec. 208. Marketing veterans to employers.-----
Sec. 209. Veterans and servicemembers electronic website.---
Sec. 210. Elimination of retired pay reduction for federally employed 
                            regular officers.--------
Sec. 211. Elimination of 180-day bar to Defense Department employment.-
Sec. 212. Relief from maximum age limits on hiring of federal 
                            firefighters and law enforcement officers.-
                            ------
Sec. 213. Leave accrual for federal employees who are Vietnam-era 
                            veterans.
Sec. 214. Employment of veterans by contractors and grantees of the 
                            Departments of Defense, Labor, and Veterans 
                            Affairs.----
                         TITLE III--HEALTH CARE

Sec. 301. Transition health care for recently separated 
                            servicemembers.--
Sec. 302. Procurement of medical items.-----
Sec. 303. Joint formulary.-------
Sec. 304. Uniform product numbers for medical and surgical supplies.--
Sec. 305. Compatible computerized systems.----
Sec. 306. Medical research.------
Sec. 307. Pilot program for furnishing veterans fee-basis care under 
                            TRICARE contracts.-------
Sec. 308. Reviews of graduate medical education programs.--
Sec. 309. Services for homeless veterans.-----
                       TITLE IV--ECONOMIC EQUITY

                   PART A--Home-Loan Guaranty Program

Sec. 401. Limitation on basic entitlement.-----
Sec. 402. Loan guaranty eligibility for reservists.-----
Sec. 403. Prospective elimination of loan fee.-----
Sec. 404. Pilot program of revised procedures in default cases.---
                         Part B--Other Programs

Sec. 411. Participation in federal employees' Thrift Savings Plan.--
Sec. 412. Enhancement of economic opportunity through entrepreneurship.
Sec. 413. Termination of the Persian Gulf War period for purposes of 
                            veterans' benefits. ------
                 TITLE V--ORGANIZATIONAL RESTRUCTURING

Sec. 501. Joint health-care policy staff.------
Sec. 502. Care for Department of Defense and Department of Veterans 
                            Affairs -beneficiaries at the other 
                            system's facilities.----
Sec. 503. Study of infrastructure realignment.-----
Sec. 504. Congruent geographic administrative structures.---
Sec. 505. Utilization of VA medical facilities as TRICARE providers.--

SEC. 2. REFERENCES TO THE 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 a 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the United 
States Code.

                           TITLE I--EDUCATION

SEC. 101. MONTGOMERY GI BILL ENHANCEMENTS.

    (a) Basic Benefit Increase.--Effective with respect to educational 
assistance allowances for months beginning after September 1999, 
section 3015 of title 38 is amended--
            (1) in subsection (a)(1), by striking out ``$528'' and 
        inserting in lieu -thereof ``$600''; and
            (2) in subsection (b)(1), by striking out ``$429'' and 
        inserting in lieu -thereof ``$488''.
    (b) Repeal of Pay Reduction and Election of Benefits.--
            (1) Section 3011 of title 38 is amended--
                    (A) by amending subsection (b) to read as follows:
    ``(b) Within 90 days after an individual initially enters on active 
duty as a member of the Armed Forces, the Secretary of Defense shall 
notify the individual of the educational assistance benefits available 
under this chapter and the eligibility requirements that must be met to 
receive those benefits.''; and
                    (B) in subsection (c), by striking out paragraph 
                (1) and -redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively.
            (2) Section 3012 of title 38 is amended--
                    (A) by amending subsection (c) to read as follows:
    ``(c) Within 90 days after an individual initially enters on active 
duty as a member of the Armed Forces, the Secretary of Defense shall 
notify that individual of the educational assistance benefits available 
under this chapter and the eligibility requirements that must be met to 
receive those benefits.''; and
                    (B) in subsection (d), by striking out paragraph 
                (1) and redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively.
            (3) The amendments made by this subsection shall take 
        effect with respect to reductions of basic pay for the month 
        during which this Act is enacted and subsequent months.
    (c) Enrollment of Certain VEAP Participants.--Section 3018C of 
title 38 is amended--
            (1) in subsection (a)--
                    (A) by amending clause (1) to read as follows:
            ``(1)(A) is a participant on October 9, 1996, in the 
        educational -benefits program provided in chapter 32, or (B) 
        disenrolled from -participation in that program before October 
        9, 1996;'';
            (B) in clause (4), by striking out ``after the date on 
        which the ---individual makes the election described in 
        paragraph (5)'' and ---inserting in lieu thereof ``before the 
        effective date of the election ---described in clause (5)''; 
        and
            (C) in clause (5), by inserting after ``October 9, 1996,'' 
        the ---following ``in the case of an individual described in 
        clause (1)(A), or on --October 1, 1999, in the case of an 
        individual described in clause ---(1)(B)'';
            (2) by redesignating the text of subsection (d) as 
        paragraph (1) of that subsection and adding after that 
        paragraph a new paragraph (2) with the following text: ``The 
        requirements of sections 3011(a)(3) and 3012(a)(3) shall apply 
        to an individual who makes the election described in subsection 
        (a)(5), except that the completion of service referred to in 
        those sections shall mean the completion of the period of 
        active duty being served by the individual on October 9, 
        1996.''.
    (d) Accelerated Payments.--(1) Section 3014 of title 38 is amended 
by designating the existing text as subsection (a) and adding at the 
end the following new subsection:
    ``(b)(1) Notwithstanding any other provisions of this chapter, the 
Secretary, pursuant to regulations which the Secretary shall prescribe, 
may make accelerated payments of the basic educational assistance 
allowance.
    ``(2) An accelerated payment may be made only to an individual who 
has made a request for that type of payment.
    ``(3) In computing the amount of an accelerated payment that covers 
a period during which an increase under section 3015(g) takes effect, 
the Secretary shall include that increase with respect to the months to 
which it applies.
    ``(4) For each accelerated payment made to an individual, the 
individual's entitlement under this subchapter shall be charged at the 
same rate at which entitlement would be charged if the individual had 
received a monthly educational assistance allowance for the period of 
educational pursuit covered by the accelerated payment.
    ``(5) The regulations referred to in paragraph (1) shall include 
the requirements, conditions, and methods for the request, issuance, 
delivery, certification of receipt and use, and recovery of overpayment 
of an accelerated payment.
    ``(6) For the purposes of this subsection, the term `accelerated 
payment' means--
            ``(A) in the case of a course leading to a standard college 
        degree, a payment made at the beginning of a quarter, semester, 
        or term in a lump-sum amount equivalent to the aggregate 
        monthly allowance otherwise payable under this chapter for the 
        entire quarter, semester, or term; or
            ``(B) in the case of a course other than a course leading 
        to a standard college degree, a payment made (i) at the latter 
        of the beginning of the course or a reasonable time after the 
        individual's request, and (ii) in the amount requested by the 
        individual, up to the aggregate monthly allowance otherwise 
        payable under this subchapter for the entire course.''.
    (e) Enhanced Benefits for Four Years of Active-Duty Service.--
Chapter 30 of title 38 is amended--
            (1) by redesignating subchapter IV as subchapter V and 
        sections 3031 through 3036 as 3041 through 3046, respectively; 
        and
            (2) by inserting the following new subchapter IV after 
        subchapter III:

            ``SUBCHAPTER IV--ENHANCED EDUCATIONAL ASSISTANCE

``Sec. 3031. Enhanced educational assistance entitlement
    ``(a) Except as provided in subsection (b), each individual--
            ``(1) who, after September 30, 1999, first enters on active 
        duty, -reenlists or extends an enlistment on active duty as a 
        member of the Armed Forces, or, in the case of an officer, 
        continues to serve on active duty after that date, and, from 
        the date of such entry, reenlistment, extension, or 
        continuation--
                    ``(A) serves a continuous period of active duty of 
                at ----least four years in the Armed Forces; or
                    ``(B) serves on active duty in the Armed Forces and 
                is ---discharged or released from active duty (i) for a 
                service-connected ---disability for a medical condition 
                which preexisted such service on ---active duty and 
                which the Secretary determines is not service ---
                connected, for hardship, or for a physical or mental 
                condition that was not characterized as a disability 
                and did not result from the ---individual's own willful 
                misconduct but did interfere with the ----individual's 
                performance of duty, as determined by the Secretary ---
                concerned in accordance with regulations prescribed by 
                the ----Secretary of Defense; (ii) for the convenience 
                of the Government, ---after having completed not less 
                that 42 months of continuous ---active duty; or (iii) 
                involuntarily for the convenience of the Government as 
                a result of a reduction in force, as determined by the 
                Secretary concerned in accordance with regulations 
                prescribed by the Secretary of Defense;
            ``(2) who completed the requirements of a secondary school 
        diploma (or equivalency certificate) not later than the 
        original ending date of the individual's period of active duty 
        described in clause (1) regardless of whether the individual is 
        discharged or released from active duty on such date, except 
        that an individual may meet the requirement of this clause by 
        having been granted credit of the equivalent of 12 semester 
        hours in a program of education leading to a standard college 
        degree before the end of the individual's period of active duty 
        described in clause (1); and
            ``(3) who, after completion of the service described in 
        clause (1)--
                    ``(A) continues on active duty;
                    ``(B) is discharged from active duty with an 
                honorable ----discharge;
                    ``(C) is released after service on active duty 
                characterized by the Secretary concerned as honorable 
                service and is placed on the retired list, is 
                transferred to the Fleet Reserve or Fleet Marine Corps 
                Reserve, or is placed on the temporary disability 
                retired list; or
                    ``(D) is released from active duty for further 
                service in a reserve component of the Armed Forces 
                after service on active duty characterized by the 
Secretary concerned as honorable ---service;
is entitled to enhanced educational assistance under this subchapter.
    ``(b) An individual is not eligible for education assistance under 
this section if the individual at any time (1) has received a 
commission as an officer in the Armed Forces upon graduation from the 
United States Military Academy, the United States Naval Academy, the 
United States Air Force Academy, or the Coast Guard Academy; or (2) has 
completed a program of education with assistance under section 2107 of 
title 10.-
    ``(c)(1) For the purposes of this section, any period of service 
described in paragraph (2) shall not be considered a part of an 
individual's period of active duty described in subsection (a)(1).-
    ``(2) A period of service referred to in paragraph (1) is any 
period--
            ``(A) that is terminated because of a defective enlistment 
        and -induction based on--
                    ``(i) the individual's being a minor for purposes 
                of service in ---the Armed Forces;
                    ``(ii) an erroneous enlistment or induction; or
                    ``(iii) a defective enlistment agreement; or
            ``(B) that an individual in the Selective Reserve was 
        ordered to -perform under section 12301, 12302, 12304, 12306, 
        or 12307 of title 10 -for a period of less than 2 years.
    ``(d)(1) For the purposes of this section, a member referred to in 
paragraph (2) who serves the periods of active duty referred in 
paragraph (2) shall be deemed to have served a continuous period of 
active duty the length of which is the aggregate length of the periods 
of active duty referred to in paragraph (2).
    ``(2) This subsection applies to a member who--
            ``(A) after a period of continuous active duty of not more 
        than 12 -months, is discharged or released from active duty 
        under subclause (i) or -(iii) of subsection (a)(1)(B); and
            ``(B) after that discharge or release, reenlists or re-
        enters on a -period of active duty.
    ``(e) Notwithstanding section 3002(6)(A), a period during which an 
individual is assigned full-time by the Armed Forces to a civilian 
institution for a course of education as described in section 
3002(6)(A) shall not be considered a break in a continuous period of 
active duty of that individual for the purposes of this section.
    ``(f)(1) Notwithstanding section 3002(6)(B), a member referred to 
in paragraph (2) of this subsection who serves the periods of active 
duty referred to in subparagraphs (A) and (C) of that paragraph shall 
be deemed to have served a continuous period of active duty the length 
of which is the aggregate length of the periods of active duty referred 
to in that paragraph.
    ``(2) This subsection applies to a member who--
            ``(A) during the period of active duty described in 
        subsection (a)(1), -commences pursuit of a course of 
        education--
                    ``(i) at an academy referred to in subsection 
                (b)(1); or
                    ``(ii) at a post-secondary school for the purpose 
                of ----preparation for enrollment at such an academy;
            ``(B) fails to complete the course of education; and
            ``(C) re-enters on a period of active duty.
``Sec. 3032. Duration of educational assistance
    ``(a) Subject to section 3695 and except as provided in subsection 
(b), each individual entitled to educational assistance under section 
3031 is entitled to a monthly educational assistance allowance under 
this subchapter for a period or periods not to exceed a total of 36 
months (or the equivalent thereof in part-time educational assistance).
    ``(b) Subject to section 3695, in the case of an individual 
described in section 3031(a)(1)(B) (i) or (iii) who is not also 
described in section 3031(a)(1)(A), the individual is entitled to one 
month of educational assistance benefits under this subchapter for each 
month of continuous active duty served by the individual beginning with 
the date on which the entry on active duty, reenlistment, enlistment 
extension, or continuation applicable to that individual under section 
3031(a)(1) begins.
``Sec. 3033. Transfer of entitlement
    ``(a) Each Secretary concerned may, in that Secretary's discretion 
and in accordance with regulations that the Secretary of Defense shall 
prescribe, authorize an individual entitled to educational assistance 
under this subchapter to transfer that entitlement to the individual's 
spouse or child, or any combination of the individual's spouse and 
children.
    ``(b) The regulations referred to in subsection (a) shall include, 
among other provisions that the Secretary of Defense may wish to 
include, the following:
            ``(1) The transferor must designate the person or persons 
        to whom -that entitlement is transferred and, if the transfer 
        is to more than one -person simultaneously, the percentage of 
        the entitlement being -transferred to each.
            ``(2) The transferor must designate the periods for which 
        the -transferor's entitlement are being transferred to each 
        transferee.
            ``(3) The transferor may at any time cancel or modify the 
        transfer by -written notice to the Secretary concerned.
            ``(4) Each transferee will be subject to the same terms, 
        conditions, and requirements as otherwise would apply to the 
        transferor except that, subject to paragraph (2) and 
        notwithstanding section 3031, a child who is a transferee may 
        use the transferred entitlement at any time before the child's 
        twenty-sixth birthday.
            ``(5) Any educational assistance provided to a transferee 
        shall be -charged against the remaining entitlement of the 
        transferor.
    ``(c) The transferor and any transferee shall be jointly and 
severally liable in accordance with section 3685 for repayment of any 
overpayment of benefits to the transferee.
``Sec. 3034. Payment of educational expenses
    ``(a) The Secretary shall pay to each individual entitled to 
educational assistance under this subchapter who is pursuing an 
approved program of education--
            ``(1) an educational assistance allowance as provided in 
        section -3035; and
            ``(2) in accordance with regulations that the Secretary 
        shall -prescribe, a sum equal to the reasonable cost of books 
        and supplies -determined to be required by similarly 
        circumstanced non-veterans for the -same course for which the 
        individual is being paid such allowance or a -similar course in 
        terms of the cost of books and supplies.
    ``(b) The Secretary shall pay to the educational institution 
providing the course for which the individual is being paid an 
educational assistance allowance under section 3035 the actual cost of 
tuition and fees otherwise payable by the individual for the pursuit of 
the course, not to exceed the amount charged to similarly circumstanced 
non-veterans.
``Sec. 3035. Amount of educational assistance
    ``(a) Except as provided in section 3042, the educational 
assistance allowance under this subchapter shall be paid--
            ``(1) at the monthly rate of $400 (as that amount may be 
        increased -pursuant to subsection (b)) for an approved program 
        of education -pursued on a full-time basis; or
            ``(2) at an appropriately reduced rate, as determined under 
        -regulations that the Secretary shall prescribe, for an 
        approved program of -education pursued on less than a full-time 
        basis.
    ``(b) With respect to any fiscal year beginning after fiscal year 
2000, the Secretary shall increase the rate paid under subsection 
(a)(1) for the previous fiscal year by a percentage equal to the 
percentage by which--
            ``(1) the Consumer Price Index (all items, United States 
        city -average) for the 12-month period ending on the June 30 
        preceding the -beginning of the fiscal year for which the 
        increase is made, exceeds
            ``(2) such Consumer Price Index for the 12-month period 
        preceding -the 12-month period described in clause (1).
    ``(c) Notwithstanding any other provision of law, the educational 
assistance allowance payable under this section shall not be countable 
as income for purposes of determining eligibility for education grants 
or loans under any other statute of the United States.
``Sec. 3036. Tutorial assistance
    ``(a) An individual entitled to an educational assistance allowance 
under this subchapter shall also be entitled to benefits provided an 
eligible veteran under section 3492, subject to the conditions 
applicable to an eligible veteran under that section.
    ``(b) The amount of benefits payable under this section may not 
exceed $100 per month, for a maximum of 12 months, or until a maximum 
of $1,200 is used.
    ``(c)(1) An individual's period of entitlement to the educational 
assistance allowance under this chapter shall be charged only with 
respect to the amount of tutorial assistance paid to the individual in 
excess of $600.
    ``(2) An individual's period of entitlement to educational 
assistance under this subchapter shall be charged at the rate of one 
month for each amount of assistance paid to the individual under this 
section in excess of $600 that is equal to the amount of the monthly 
educational assistance allowance that the individual is otherwise 
eligible to receive under section 3035(a)(1).
    (f) Clerical and Conforming Amendments.--(1) Section 3002 of title 
38 is amended by inserting at the end the following new paragraph:
    ``(9) The term `enhanced educational assistance' means educational 
assistance provided under subchapter IV.''.
    (2) Section 3011 is amended in subsection (f)(1) and (g) by 
striking out ``chapter'' each place it appears and inserting in lieu 
thereof ``subchapter''.
    (3) Section 3015(a) of title 38 is amended in the first sentence by 
striking out ``section 3032'' and inserting in lieu thereof ``section 
3042''.
    (4) Section 3017(c) of title 38 is amended by striking out 
``section 3035(b)(1)'' and inserting in lieu thereof ``section 
3045(b)(1)''.
    (5) Section 3019 of title 38 is amended in subsections (a) and 
(c)(2) by striking out ``chapter'' each place it appears and inserting 
in lieu thereof ``subchapter''.
    (6) Section 3022(a) of title 38 is amended by striking out 
``section 3032'' and inserting in lieu thereof ``section 3042''.
    (7) Section 3041 of title 38 (as redesignated by subsection (e)(1)) 
is amended--
            (A) in subsection (e), by inserting ``or 3032'' after 
        ``section 3013'';
            (B) in subsection (f), by inserting ``or 3032'' after 
        ``section 3013''; and--
            (C) in subsection (g), by inserting ``or 
        3031(a)(1)(B)(iii)'' after ``section 3011(a)(1)(A)(ii)(III)''.
    (8) Section 3042 of title 38 (as redesignated by subsection (e)(1)) 
is amended--
            (A) in subsection (d)(1), by inserting ``or section 3034'' 
        after ``if applicable,'';
            (B) in subsection (f)(3), by inserting ``, or subsection 
        (a)(1) of section 3035,''.
    (9) Section 3044 of title 38 (as redesignated by subsection (e)(1)) 
is amended in subsection (c) by striking out ``section 3032(b)'' and 
inserting in lieu thereof ``section 3042(b)''.
    (10) Section 3680A(d)(2)(A) of title 38 is amended by striking out 
``3034(a)(3)'' and inserting in lieu thereof ``3044(a)(3)''.
    (11) Section 3688(a)(6) of title 38 is amended by striking out 
``section 3034(a)(3),'' and inserting in lieu thereof ``section 
3044(a)(3),''.
    (12) Section 16133(b) of title 10 is amended--
            (A) in paragraph (2), by striking out ``section 3031(f)'' 
        and inserting in lieu thereof ``section 3041(f)''; and
            (B) in paragraph (3), by striking out ``section 3031(d)'' 
        and inserting in lieu thereof ``section 3041(d)''.
    (13) The table of sections at the beginning of chapter 30 of title 
38 is amended by striking out the items relating to subchapter IV and 
inserting in lieu thereof the following:
            ``subchapter iv--enhanced educational assistance
``3031. Enhanced educational assistance entitlement.
``3032. Duration of educational assistance.
``3033. Transfer of entitlement.
``3034. Payment of educational expenses.
``3035. Amount of educational assistance.
`subchapter v--time limitation for use of eligibility and entitlement; 
                 general and administrative provisions
``3041. Time limitation for use of eligibility and entitlement.
``3042. Limitations on educational assistance for certain individuals.
``3043. Bar to duplication of educational assistance benefits.
``3044. Program administration.
``3045. Allocation of administration and of program costs.
``3046. Reporting requirement.''.-

SEC. 102. REENGINEERING OF APPROVAL PROCESS FOR VA-FUNDED EDUCATION 
              PROGRAMS. ----

    (a) Renaming of State Approving Agencies.--Section 3671 of title 38 
is amended--
            (1) in subsection (a), by striking out ``State approving 
        agency'' -inserting in lieu thereof ``State veterans education 
        development agency''; -and
            (2) in subsection (b), by striking out ``State approving 
        agency'' each -place it appears and inserting in lieu thereof 
        ``State veterans education -development agency''.
    (b) Development of On-Job and Apprenticeship Training Programs.--
(1) Subsection (d) of section 3672 is amended to read as follows:
    ``(d) Each State veterans education development agency shall--
            ``(1) actively promote the development of programs of on-
        job -training (including programs of apprenticeship) for the 
        training of -veterans under this title; and
            ``(2) in carrying out paragraph (1), give priority to 
        developing -programs that can provide training to veterans with 
        disabilities.''.
    (2) Section 3673(a) of title 38 is amended by striking out 
``institutions, and particular attention should be given'' and 
inserting in lieu thereof ``and training institutions, and particular 
attention should be given to the development of on-job training 
(including apprenticeship) programs,''.
    (c) Enhanced Approval Process for Accredited Courses.--(1) Section 
3675 of title 38 is amended--
            (A) in the material preceding subparagraph (A) of paragraph 
        (1) of -subsection (a)--
                    (i) by striking out ``may'' and inserting in lieu 
                thereof ``shall''; and
                    (ii) by inserting ``that meets all the requirements 
                of this ---section'' after ``institution''; and
            (B) in paragraph (1)(A) of subsection (a), by inserting 
        ``described in -paragraph (2)(A)'' before the semicolon at the 
        end;
            (C) in paragraph (2) of subsection (a), by inserting at the 
        end following new subparagraph:
    ``(C) Notwithstanding any other provision of this section, a State 
veterans education development agency may, in the case of an 
educational institution that offers courses approved under this 
section, review and approve or disapprove any course or courses newly 
offered by that educational institution.'';
            (D) in paragraph (2)(B) of subsection (a), by striking out 
        ``may -utilize'' and inserting in lieu thereof ``shall use''; 
        and
            (E) in subsection (b), by striking out paragraph (3).
    (e) Expansion of Waiver of Non-Accredited Course Refund 
Requirements.--Section 3676 of title 38 is amended in subsection (d)(4) 
by striking out ``regional'' and inserting in lieu thereof ``regional, 
professional, or trade''.
    (f) Clerical Amendments.--(1) Chapter 36 of title 38 is amended by 
striking out ``State approving agency'' each place it appears after the 
other amendments in this section are made and inserting in lieu thereof 
``State veterans educational development agency''.
    (2) Such chapter 36 is further amended in the table of sections at 
the beginning of the chapter, by striking out:
               ``subchapter i--state approving agencies''
and inserting in lieu thereof the following:
    ``subchapter i--state veterans education development agencies''.
    (3) Such chapter 36 is further amended by striking out the heading 
relating to subchapter I after the table of sections and inserting in 
lieu thereof the following:

   ``SUBCHAPTER I--STATE VETERANS EDUCATIONAL DEVELOPMENT AGENCIES''.

                   TITLE II--EMPLOYMENT AND TRAINING

SEC. 201. UPDATING AND IMPROVEMENT OF JOB COUNSELING, TRAINING, AND 
              PLACEMENT SERVICES.

    (a) Program Revisions.--(1) Paragraph (1) of section 4100 of title 
38 is amended to read as follows:
            ``(1) As long as unemployment and underemployment continue 
        as serious problems among disabled veterans, veterans with 
        existing employment barriers, and veterans recently separated 
        from active duty, alleviating unemployment and underemployment 
        among these veterans is a national responsibility.''.
    (2) Section 4101 of title 38 is amended--
            (A) by amending paragraphs (1) through (3) to read as --
        follows:
            ``(1) The term `disabled veteran' has the same meaning 
        provided in -section 4211(3).
            ``(2) The term `recently separated veteran' means a veteran 
        who has been discharged or released from active duty less than 
        four years.
            ``(3) The term `veteran with existing employment barriers' 
        shall have -the meaning provided in regulations prescribed by 
        the Secretary of -Labor.''.
    (3) Section 4102 of title 38 is amended by striking out ``veterans 
and veterans of the Vietnam era'' and inserting in lieu thereof 
``veterans, veterans with existing employment barriers, and recently 
separated veterans''.
    (4) Section 4102A of title 38 is amended--
            (A) in subsection (b)(1), by striking out ``of the Vietnam 
        era'' and inserting in lieu thereof ``with existing employment 
        barriers, recently separated veterans'';
            (B) in subsection (b)(3)(b), by striking out ``Veterans' 
        Job Training Act (29 U.S.C. 1721 note)'' and inserting in lieu 
        thereof ``Workforce Investment Act of 1998``;
            (C) in subsection (b)(5)--
                    (i) in clause (A), by amending subclauses (i) and 
                (ii) to read as follows ``(i) Veterans' Case Managers 
                under section 4104A, and (ii) Veterans' Employment 
                Facilitators under section 4104B,``; and
                    (ii) in clause (B), by striking out ``such 
                specialists and representatives'' and inserting in lieu 
                thereof ``Veterans' Case Managers and Veterans' 
                Employment Facilitators''.
            (D) by striking out paragraphs (6) and (7) of subsection 
        (b) and inserting in lieu thereof the following:
            ``(6) ensure that all grants and contracts under section 
        4104 are -awarded on a competitive basis; and
            ``(7) monitor and supervise on a continuing basis the 
        distribution and use of funds provided for use in the States 
        under section 4104.'';
            (E) in subsection(c)(1)--
                    (i) by striking out ``of this section in order to 
                carry out sections 4103A and 4104(a) of this title'' 
                and inserting in lieu thereof ``in order to carry out 
                sections 4104, 4104A, and 4104B''; and
                    (ii) by striking out ``4103A or 4104 of this 
                title'' and inserting in lieu thereof ``4104, 41104A, 
                or 4104B'';
            (F) in subsection (c)(2)--
                    (i) by striking out ``4103A or 4104'' and inserting 
                in lieu thereof ``4104A or 4104B''; and
                    (ii) in clause (A), by striking out (I) the comma 
                after ``evaluations'', and (II) ``of the performance of 
                local employment offices in the state,''; and
            (G) in subsection (d), by striking out ``Job Training 
        Partnership Act'' and inserting in lieu thereof ``Workforce 
        Investment Act of 1998.''.
    (5) Section 4103 of title 38 is amended--
            (A) in subsection (b)(1)(A)(i), by striking out all after 
        ``veteran'' and inserting in lieu thereof a comma;
            (B) in subsection (b)(2), by striking out ``attached to the 
        public employment service system of the State to which they are 
        assigned. They shall be''; and
            (C) in subsection (c)--
                    (i) by striking out ``functionally supervise'' in 
                clause (1)(A) and inserting in lieu thereof 
                ``oversee'';
                    (ii) in clause (1)(B)--
                            (I) by striking out ``be functionally 
                        responsible for the supervision of'' and insert 
                        in lieu thereof ``oversee''; and
                            (II) by striking out ``Veterans' Job 
                        Training Act (Public Law 98-77; 29 U.S.C. 1721 
                        note)'' and inserting in lieu thereof 
                        ``Workforce Investment Act of 1998'';
                    (iii) in clause (6), by striking out ``veterans of 
                the Vietnam era, disabled veterans'' and inserting in 
                lieu thereof ``disabled veterans, veterans with 
                existing employment barriers, and recently separated 
                veterans''; and
                    (iv) by striking out ``monitor,'' and all that 
                follows through ``representatives,'' and inserting in 
                lieu thereof ``monitor''.
    (6) Chapter 41 of title 38 is amended by striking out sections 
4103A, 4104, and 4104A and inserting in lieu thereof the following:
``Sec. 4104. Grants and contracts
    ``(a) The Secretary is authorized to make grants to or to contract 
with entities which agree to provide employment and training services 
for veterans under this chapter. The Secretary is authorized to provide 
such grants or enter into such contracts with eligible entities to pay 
all or part of the cost of programs which carry out all or some of the 
purposes of this chapter. Each such grant or contract shall be awarded 
on a competitive basis and shall cover the furnishing of services 
within an entire State or, as the Secretary determines appropriate 
under subsection (c)(2), part of a State.
    ``(b)(1) In selecting among entities competing for the award of a 
grant or contract for the furnishing of services of Veterans' Case 
Managers under section 4105, and in assessing the performance of 
entities furnishing those services, the Secretary shall take into 
account the proven capabilities and records of the entities in 
achieving positive employment outcomes. The outcome measurements for 
this purpose shall be specified in regulations that the Secretary shall 
prescribe and shall include, but not be limited to--
            ``(A) the numbers of veterans entered into employment;
            ``(B) the numbers of veterans receiving various case-
        management -services beyond employment-search assistance 
        entered into employment; and
            ``(C) the numbers of veterans in each of the foregoing 
        categories of -veterans entered into employment who remain 
        employed in each of the three years after becoming employed.
    ``(2) In selecting among entities competing for the award of a 
grant or contract for furnishing the services of Veterans' Employment 
Facilitators under section 4106, and in assessing the performance of 
entities furnishing those services, the Secretary shall take into 
account the proven capabilities and records of the entities in 
achieving positive employment outcomes. The outcome measurements for 
this purpose shall be specified in regulations that the Secretary shall 
prescribe and shall include, but not be limited to--
            ``(A) employer contacts resulting in the hiring of 
        veterans; and
            ``(B) the satisfaction of participants in transition 
        assistance program -workshops under section 1144 of title 10.
    ``(c)(1) A grant or contract under this chapter shall contain such 
terms and conditions as the Secretary may require, including terms of 
payment, the manner of record-keeping by the grantee or contractor, and 
any periodic reports required by the Secretary.
    ``(2) The Secretary may--
            ``(A) limit a grant or contract under this chapter to a 
        specific -geographic area within a State as determined 
        appropriate by the -Secretary; and
            ``(B) provide more than one grant or contract for a State, 
        or a -specific geographic area in a State, if the Secretary 
        determines that doing -so is necessary for all services and 
        assistance authorized by this chapter -to be provided in that 
        area.
    ``(d) Applications for grants and contracts under this chapter 
shall be submitted at such times, in such form, and contain such 
information and assurances as the Secretary may require, including 
information demonstrating the capacity and expertise of the applying 
entity to provide the services and assistance required by the grant or 
contract.
    ``(e) Each grant or contract under this chapter shall contain a 
provision requiring the grantee or contractor to comply with the 
provisions of this chapter.
``Sec. 4104A. Veterans' Case Managers
    ``(a) The Secretary shall make available through grants and 
contracts such funds as may be necessary to support Veterans' Case 
Managers under this section.
    ``(b) In providing services to eligible veterans under this 
section, Veterans' Case Managers shall give priority, in the following 
order, to:
            ``(1) Disabled veterans.
            ``(2) Veterans with existing employment barriers.
            ``(3) Recently separated veterans.
    ``(c)(1) Subject to subsection (b) and paragraph (2), each 
Veterans' Case Manager shall provide to eligible veterans--
            ``(A) a personal assessment of employment skills and needs, 
        including but not limited to testing, employment counseling, 
        and individual employability development plans;
            ``(B) job development services, including but not limited 
        to job accommodation for a disability and marketing individual 
        veterans to specific employees;
            ``(C) employment search assistance, including but not 
        limited to provision of labor market information, employment 
        interview techniques, resume preparation, identification and 
        use of job finding resources, and referral to job openings;
            ``(D) referral to training services, including but not 
        limited to identification of sources of training services and 
        assistance with applying for those services and being referred 
        to those sources;
            ``(E) referral to supportive services, including but not 
        limited to (i) identification of sources of financial, legal, 
        counseling, medical, and other services and assistance not 
        directly related to employment, and (ii) assistance with 
        applying for those services and assistance and being referred 
        to those sources;
            ``(F) monitoring the veteran's adjustment to and 
        maintenance of employment, including but not limited to 
        regular, periodic contact with the veteran and the employer and 
        monitoring of the employer's training.
    ``(2) Except in the cases of disabled veterans and veterans with 
existing employment barriers, Veterans' Case Managers ordinarily will 
provide eligible veterans with only services described in clause (C) of 
paragraph (1).
``Sec. 4104B. Veterans' Employment Facilitators
    ``(a) The Secretary shall make available through grants and 
contracts such funds as may be necessary to support Veterans' 
Employment Facilitators under this section.
    ``(b) The only duties of a Veterans' Employment Facilitator shall 
be to market veterans and servicemembers who are about to become 
veterans to employers in the geographic area for which the Facilitator 
has responsibility and to participate in the conduct of transition 
assistance program workshops under section 1144 of title 10.''.
    (7) Section 4105(b) of title 38 is amended by striking out 
``Veterans' Job Training Act (Public Law 98-77, 29 U.S.C. 1721 note)'' 
and inserting in lieu thereof ``Workforce Investment Act of 1998''.
    (8) Section 4106(a) of title 38 is amended--
            (A) by striking out the fourth sentence;
            (B) in the fifth sentence, by striking out ``in all of the 
        States''; and
            (C) in the sixth sentence, by striking out ``disabled 
        veterans'' and all that follows through ``4104 of this title'' 
        and inserting in lieu thereof ``Veterans' Case Managers under 
        section 4104A and Veterans' Employment Facilitators under 
        section 4104B''.
    (9) Section 4107 of title 38 is amended--
            (A) by amending subsection (a) to read as follows:
    ``(a) The Secretary shall establish administrative controls in 
order to insure that each eligible veteran, especially disabled 
veterans, veterans with existing employment barriers, and recently 
separated veterans, and each eligible person who requests assistance 
under this chapter shall promptly be placed in a satisfactory job or 
job training opportunity or receive some other specific form of 
assistance designed to enhance the veteran's or eligible person's 
employment prospects substantially, such as individual job development 
or employment counseling services.'';
            (B) in the first sentence of subsection (b), by striking 
        out ``by the State public employment service agencies''; and
            (C) in subsection (c)--
                    (i) by amending clause (1) to read as follows:
            ``(1) information, by State, regarding (A) the numbers of 
        eligible -veterans, disabled veterans, veterans with existing 
        employment barriers, -recently separated veterans, and eligible 
        persons who registered for -assistance with the public 
        employment service system or with grantees -and contractors 
        under this chapter who are not part of that system, and -(B) 
        for each of those categories, results as measured by the 
        outcome -measurements prescribed under section 4104(b), as 
        applicable;'';
                    (ii) by striking out clause (2) and redesignating 
                clauses (3), (4), and (5) as clauses (2), (3), and (4), 
                respectively;
                    (iii) in clause (5), as so redesignated, by 
                striking out ``4103A and 4104'' and inserting in lieu 
                thereof ``4104, 4104A, and 4104B''; and
                    (iv) in clause (5), as so redesignated--
                            (I) by striking out ``in meeting the 
                        requirements of section 4102A(b) of this 
                        title''; and
                            (II) by striking out ``(including'' and all 
                        that follows through ``representatives)''.
    (10) Section 4108 of title 38 is amended--
            (A) by striking out ``(a)'' at the beginning of subsection 
        (a); and
            (B) by striking out subsection (b).
    (11) Section 4109(a) of title 38 is amended by striking out 
``disabled veterans' outreach program specialists, local veterans 
employment representatives,'' and inserting in lieu thereof ``Veterans' 
Case Managers, Veterans' Employment Facilitators,''.
    (12) Section 4110A(a)(1) of title 38 is amended--
            (A) in clause (D), by inserting ``in a campaign or 
        expedition for which a campaign or expedition for which a 
        campaign badge has been authorized'' after ``Vietnam era''; and
            (B) by redesignating clause (E) as clause (F); and
            (C) by inserting after clause (D) a new clause (E) as 
        follows:
            ``(E) Veterans who served on active duty after the Vietnam 
        era who did not serve in a campaign or expedition for which a 
        campaign badge has been authorized.''.
    (b) Discrepancies in Reporting of Veterans Using State Employment 
Services.--The Secretary of Labor shall, within 90 days after the date 
of the enactment of this Act--
            (1) resolve the discrepancies that exist in the Bureau 
        Labor -Statistics biennial report under section 4110A of title 
        38, United States -Code, and the report of the Veterans 
        Employment and Training Service -known as the ETA-9002 Report, 
        regarding the numbers of veterans who -use State employment 
        services; and
            (2) submit to the appropriate Committees of the Congress a 
        report describing the causes of those discrepancies and how 
        they were -resolved.
    (c) Clerical and Conforming Amendments.--(1) The table of sections 
at the beginning of chapter 41 of title 38 is amended by striking out 
the items relating to sections 4103A, 4104, and 4104A and inserting in 
lieu thereof the following:

``4104. Grants and contracts.
4104A. Veterans' Case Managers.
4104B. Veterans' Employment Facilitators.''.
    (2) Section 3117 of title 38 is amended by striking out ``disabled 
veterans outreach program specialists under section 4103A'' and 
inserting in lieu thereof ``Veterans' Case Managers under section 
4104A''.
    (3) Section 3672(d) of title 38 is amended by striking out 
``disabled veterans' outreach program specialists under section 4103A'' 
and inserting in lieu thereof ``Veterans' Case Managers under section 
4104A''.
    (4) Section 1721(b)(2)(B) of title 29 is amended by striking out 
``4103A'' and inserting in lieu thereof ``4104A''.
    (d) Effective Date and Transition.--(1) Except as provided in 
paragraph (2), the amendments made by this section shall take effect on 
October 1, 2000.
    (2) The Secretary of Labor may continue to excercise the 
authorities in chapter 41 as in effect on September 30, 2000 (and the 
Secretary of Veterans Affairs may continue to exercise authorities in 
other provisions of title 38 amended by this section as in effect on 
that date), to the extent that the Secretary of Labor (or the Secretary 
of Veterans Affairs, as appropriate) determines necessary to ensure the 
continuity of services and assistance to veterans and eligible persons.

SEC. 202. VOCATIONAL REHABILITATION FOR SERVICE-DISABLED VETERANS.

    (a) Performance Measurements.--The Secretary of Veterans Affairs 
shall require that performance measurements for the program of 
vocational rehabilitation under chapter 31 of title 38, United States 
Code, focus on outcome measures, including--
            (1) the numbers of program participants who enter 
        employment;
            (2) the numbers of participants with serious employment -
        handicaps who enter employment;
            (3) the numbers of participants (with breakdowns between 
        those -who do and those who do not have serious employment 
        handicaps) who -remain employed in each of the three years 
        following their entering -employment; and
            (4) such other outcome measures as the Secretary determines 
        -would contribute to achieving the goal of enabling eligible 
        disabled -veterans to become employable and to obtain and 
        maintain suitable -employment.
    (b) Provision of Case-Management and Employment Services.--(1) 
Section 3115 of title 38 is amended--
            (A) in subsection (a), by inserting ``except subsection 
        (c)'' after -``provision of law'';
            (B) by redesignating subsection (c) as subsection (d); and
            (C) by inserting after subsection (b) the following new 
        subsection:
    ``(c) All case-management services and employment services 
(including but not limited to placement services and the other services 
authorized by section 3117) under this chapter shall be provided 
exclusively by Department of Veterans Affairs personnel or by a 
Veterans' Case Manager under section 4104A. The Secretary may not 
contract with any other person or entity to provide the services 
described in the preceding sentence.''.
    (2)(A) Except as provided in subparagraph (B), the amendments made 
by this section shall take effect October 1, 2000.
    (B) After that date, the Secretary of Veterans Affairs may continue 
to provide the services described in subsection (c) of section 3115 of 
title 38, United States Code, as added by paragraph (1), through 
contractual arrangements only in areas in which a delay in the 
implementation of the Veterans' Case Manager program under chapter 42 
of title 38 makes it advisable to do so.-

SEC. 203. TRANSITION ASSISTANCE PROGRAM FUNDING.

    Section 1144 of title 10 is amended by adding at the end the 
following new subsection:
    ``(e) Funding.--(1) There is authorized to be appropriated to the 
Department of Defense for each fiscal year to carry out this section 
and sections 1142 (a) and (b) and 1143a an amount equal to $390 (as 
increased pursuant to paragraph (C)) multiplied by the number of 
members that the Secretary of Defense, after consultation with the 
Secretary of Transportation, estimates (pursuant to paragraph (2)) will 
be discharged or released during that fiscal year.
    ``(2) The Secretary of Defense shall include in documents submitted 
by the Secretary in support of the President's budget for each fiscal 
year, the Secretary's estimate of the number of members who will be 
discharged or released in that fiscal year. The Secretary may revise 
that estimate as warranted by the facts.
    ``(3) For the purposes of fiscal year 2000 and each succeeding 
fiscal year, the amount specified in paragraph (A) shall be increased 
by the percentage by which--
            ``(A) the Consumer Price Index (all items, United States 
        city -average) for the 12-month period ending on the June 30 
        preceding the -beginning of the fiscal year for which the 
        increase is made, exceeds
            ``(B) that Consumer Price Index for the 12-month period 
        preceding -the 12-month period described in clause (i).
    ``(4) Of the funds appropriated each fiscal year pursuant to the 
authorization provided in this subsection, the Secretary of Defense 
shall allocate to the Department of Transportation an amount 
proportionate to the number of members of the Coast Guard being 
discharged or separated that fiscal year.''.

SEC. 204. TIMING OF PRESEPARATION COUNSELING.

    (a) Section 1142(a)(1) of title 10 is amended--
            (1) by amending the first sentence to read as follows: 
        ``Within the -time periods specified in paragraph (3), the 
        Secretary concerned shall -(except as provided in paragraph 
        (4)) provide for individual preseparation -counseling of each 
        member of the armed forces whose discharge or -release from 
        active duty is anticipated.''; and
            (2) by inserting at the end the following new paragraphs:
    ``(3)(A) Preseparation counseling shall commence as soon as 
possible during the two-year period preceding an anticipated retirement 
and as soon as possible during the one-year period preceding other 
separations, but, except as provided in subparagraph (B), in no event 
later than 90 days before the date of discharge or release.
    ``(B) In the event that a retirement or other separation is 
unanticipated until there are 90 or fewer days remaining in the 
member's service, preseparation counseling shall begin as soon as 
possible within the remaining period of service.
    ``(4) Except in the case of a member who is being retired or 
separated for disability, the Secretary concerned shall give to each 
member who is being discharged or released before the completion of 
that member's first 180 days of active duty the option of not receiving 
preseparation counseling. A notation reflecting the fact that a member 
has exercised that option shall be placed in the service record of each 
member who has.''.

SEC. 205. ELIMINATION OF INEQUITY IN TRANSITION BENEFITS FOR 
              INVOLUNTARY SEPARATEES.

    (a) Limitation on Special Transition Benefits.--Section 1141 of 
title 10 is amended--
            (1) by striking out ``A'' at the beginning and inserting in 
        lieu thereof ``(a) Basic Definition.--Except as provided in 
        subsection (b), a''; and
            (2) by inserting at the end the following new subsection:
    ``(b) Limitation.--A member shall be considered to be involuntarily 
separated for purposes of this subchapter only if, under regulations 
prescribed by the Secretary of Defense, the member is being discharged 
or released as the result of a force-management reduction.''.

SEC. 206. DEPARTMENT OF VETERANS AFFAIRS SUPPORT OF TRANSITION 
              ASSISTANCE.------

    (a) Outreach Services.--Section 7722(d) of title 38 is amended by 
inserting at the end the following new sentence: ``The Secretary shall 
provide such aid and assistance to members of the Armed Forces as part 
of their transition assistance programs under section 1144 of title 
10.''.
    (b) Overseas Veterans Assistance Offices.--Section 7723(a) is 
amended by striking out in the second sentence ``In establishing and 
maintaining such'' and inserting in lieu thereof ``The Secretary shall 
also maintain such offices on such Armed Forces installations located 
elsewhere as the Secretary, after consultation with the Secretary of 
Defense, determines to be necessary to carry out such purposes. In 
establishing and maintaining veterans assistance''.
    (c) Outstationing of Counseling and Outreach Personnel.--Section 
7724 of title 38 is amended by inserting ``and military installations'' 
after ``including educational institutions''.

SEC. 207. PRIORITIES FOR EMPLOYMENT SERVICES.

    (a) Priority for Federal Employment Services.--Chapter 41 of title 
38 is amended by inserting after section 4108 the following new 
section:
``Sec. 4108A. Priority for Employment Services and Assistance
    ``Notwithstanding any other provision of law, veterans who are 
eligible for employment services or assistance under any employment or 
training program funded in whole or in part by the United States who 
are also disabled veterans, veterans with employment barriers, or 
veterans separated from active duty less than four years shall be 
entitled to first priority to any such employment services or 
assistance for which they are otherwise eligible.''.
    (b) Emphasis Under Federal Contracts.--Section 4212 of title 38 is 
amended--
            (1) in subsection (a), by striking out ``special disabled 
        veterans and -veterans of the Vietnam era'' and inserting in 
        lieu thereof ``disabled -veterans, veterans who have employment 
        barriers (as defined in -regulations that the Secretary shall 
        prescribe), and veterans who have been separated from active 
        duty less than four years'';
            (2) in subsection (b), by striking out ``special disabled 
        veteran or -veteran of the Vietnam era'' and inserting in lieu 
        thereof ``veteran -described in subsection (a)''; and
            (3) in subsection (c), by striking out ``of Labor'' and by 
        striking out -``4107(c)'' and inserting in lieu thereof 
        ``4110(c)''.
    (c) Conforming and Clerical Amendments.--(1) Section 4211 is 
amended--
            (A) by amending paragraph (1) to read as follows:
    ``(1) The term `veterans with employment barriers' shall be defined 
in regulations that the Secretary shall prescribe.''; and
            (B) by striking out paragraph (2) and redesignating 
        paragraphs (3), -(4), and (5) as paragraphs (2), (3), and (4), 
        respectively.
    (2) The table of sections at the beginning of chapter 41 is amended 
by inserting after the item relating to section 4108 the following:

``4108A. Priority for employment services and assistance.''.

SEC. 208. MARKETING VETERANS TO EMPLOYERS.

    (a) Establishment of the Veterans' Employment Network.--Chapter 42 
of title 38 is amended by adding at the end the following new section:
``Sec. 4215. Veterans' Employment Network
    ``(a) There is established within the Executive Branch an entity to 
be known as the Veterans' Employment Network.
    ``(b) The purposes of the Veterans' Employment Network (hereinafter 
referred to as the `Network') are to--
            ``(1) raise the awareness of employers of the advantages of 
        hiring -servicemembers who are separating from active duty and 
        recently -separated veterans;
            ``(2) facilitate the employment of such servicemembers and 
        -veterans through national electronic labor exchanges; and
            ``(3) foster, and facilitate the coordination of, federal, 
        state and local governmental programs aimed at marketing the 
        employment of such -servicemembers and veterans.
    ``(c)(1) The Network shall be governed by a board of directors 
consisting of at least twelve but not more than eighteen persons 
appointed by the President for terms of two years. In selecting 
members, the President shall be guided by the goal of having on the 
board high-ranking individuals who represent constituencies that are 
integral to ensuring the successful employment of increasing numbers of 
servicemembers and veterans. In order to achieve that goal, the 
President should ensure that the board includes representatives from 
the military services, the joint chiefs of staff, major national 
corporations, national business associations, national unions, state 
public labor exchange administrators, and national veterans service 
organizations and military associations.
    ``(2) The President shall designate a chairperson and vice-
chairperson of the board who shall serve in their respective capacities 
for terms of two years.
    ``(3) The term of a member of the board who is an officer or 
employee of the United States shall be deemed to expire, unless the 
President otherwise directs, when that member ceases to occupy the 
position that was the basis of the member's appointment to the board.
    ``(4) Upon the occurrence of a vacancy on the board, an individual 
appointed to fill the vacancy shall serve for a term of two years.
    ``(5) Members of the board may be reappointed for a maximum of two 
terms beyond their initial term.
    ``(6) Members of the board shall be allowed reasonable and 
necessary travel expenses, including per diem in lieu of subsistence, 
at rates authorized for persons serving intermittently in the 
Government service in accordance with the provisions of subchapter I of 
chapter 57 of title 5 while away from their homes or regular places of 
business in the performance of the responsibilities of the board.
    ``(c)(1) The President shall appoint an executive director of the 
Network.
    ``(2) The executive director shall have the authority to provide 
for the support and staffing of the Network, including the authority to 
employ such professional and clerical staff as are necessary for the 
effective operations of the Network.
    ``(3) The Network shall have the authority to enter into contracts 
to obtain services for the design, production, and distribution of 
marketing materials.
    ``(d) The Department of Labor shall provide administrative support 
services to the Network on a reimbursable basis.
    ``(e) There is authorized to be appropriated for the purposes of 
this section, $10 million for fiscal year 2000 and such sums as are 
necessary for each fiscal year thereafter.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 42 or title 38 is amended by inserting below the item relating 
to section 4214 the following:

``4215. Veterans' Employment Network.''.

SEC. 209. VETERANS AND SERVICEMEMBERS ELECTRONIC WEBSITE.---------

    (a) Establishment of Electronic Website.--(1) Section 1144 of title 
10 is amended--
            (A) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (B) by inserting after subsection (c), the following new 
        subsection (d):
    ``(d) Veterans and Servicemembers Internet Site.--(1)(A) The 
Secretary of Labor shall design, establish, and maintain on the 
internet an electronic site, to be known as the Veterans and 
Servicemembers Internet Site. The Secretary shall carry out the 
provisions of this subsection in conjunction with, and with the 
assistance of, the Secretaries of Defense, Transportation, and Veterans 
Affairs.
    ``(B) The purpose of the site shall be to provide a convenient and 
efficient mechanism designed specifically for matching veterans and 
separating servicemembers with prospective employers.
    ``(C) In establishing and operating the site, the Secretary of 
Labor shall (i) make use of the electronic platform of the Department 
of Labor Internet Personnel Resources site, known as `America's Career 
Kit'; (ii) take into account the special circumstances of separating 
servicemembers stationed overseas; (iii) incorporate and update data 
generated and maintained by the Department of Defense under sections 
1143(c) and 1143a(b), (c), and (d); and (iv) carry out the 
responsibilities of the Secretaries of Defense and Transportation under 
those sections as in effect on the day before the enactment of the 
Servicemember and Veterans Transitions Services Improvement Act of 
1999.
    ``(2)(A) The Secretary of Labor shall publicize the site 
established under this section to employers, associations of employers, 
veterans, veteran service organizations, and military associations in 
order to encourage the use of the site as a means of matching veterans 
and prospective employers.
    ``(B) The Secretary shall provide and coordinate training in the 
use of the site for employment services providers and persons serving 
on active duty.''.
    (2) The Secretary of Labor shall establish the site required under 
the amendment made by paragraph (1)(B) no later than 180 days after the 
date of the enactment of this Act.
    (b) Conforming Amendments.--(1) Section 1143 of title 10 is amended 
by striking out subsection (c) and redesignating subsection (d) as 
subsection (c).
    (2) Section 1143a of title 10 is amended by striking out 
subsections (b) through (f) and redesignating subsections (g) and (h) 
as subsections (b) and (c), respectively.
    (3) Section 1148 of title 10 is repealed.

SEC. 210. ELIMINATION OF RETIRED PAY REDUCTION FOR FEDERALLY EMPLOYED 
              REGULAR OFFICERS.

    Section 5532(b) of title 5 is amended--
            (1) by striking out ``(b) A'' and inserting in lieu thereof 
        ``(b)(1) Except as provided in paragraph (2), a''; and
            (2) by inserting at the end the following new paragraph:
    ``(2) Paragraph (1) shall not apply to an officer who first becomes 
eligible to begin receiving retired or retainer pay after December 31, 
1999.''.

SEC. 211. ELIMINATION OF 180-DAY BAR TO DEFENSE DEPARTMENT EMPLOYMENT.

    Section 3326 of title 5 is repealed.

SEC. 212. RELIEF FROM MAXIMUM AGE LIMITS ON HIRING OF FEDERAL 
              FIREFIGHTERS AND LAW ENFORCEMENT OFFICERS.

    Section 3307 of title 5 is amended by adding at the end the 
following new subsection:
    ``(f) In the computation of the age of a veteran (as defined in 
section 101(2) of title 38) under subsection (d) and (e) of this 
section, the veteran's date of birth shall be deemed to have occurred 
later than was actually the case by an amount of time equal to the 
period that the veteran served on active duty (as defined in section 
101(21) of title 38).''.

SEC. 213. LEAVE ACCRUAL FOR FEDERAL EMPLOYEES WHO ARE VIETNAM-ERA 
              VETERANS.

    Section 6303(a)(3)(B) of title 5 is amended by inserting after 
``war'' the following ``(including the Vietnam era, as defined in 
section 101(29) of title 38)''.

SEC. 214. EMPLOYMENT OF VETERANS BY CONTRACTORS AND GRANTEES OF THE 
              DEPARTMENTS OF DEFENSE, LABOR, AND VETERANS AFFAIRS.

    (a) Solicitations.--Any solicitation issued by the Department of 
Defense, Labor, or Veterans Affairs for the procurement, by contract or 
grant, of real or personal property or nonpersonal services (including 
construction) shall require each offeror--
            (1) to include, for purposes of the evaluation of past 
        performance, a description of the offeror's program for hiring 
        and promoting qualified eligible veterans; and
            (2) to include as part of any required subcontracting plan 
        an affirmative commitment to hire eligible veterans as a 
        specific percentage of the workforce.
    (b) Subcontracting Plans.--(1) An offeror responding to a 
solicitation covered by subsection (a) will earn additional evaluation 
credit based on the likelihood of meeting the subcontracting goal set 
forth in the plan referred to in subsection (a)(2).
    (2) Proposals that are found not to include an acceptable 
subcontracting plan will be rejected.

                         TITLE III--HEALTH CARE

SEC. 301. IMPROVED TRANSITION HEALTH CARE FOR RECENTLY SEPARATED 
              SERVICEMEMBERS.

    (a) Improvements in Coverage and Fees.--Section 1078a of title 10 
is amended--
            (1) in subsection (a), by striking out ``for former'' and 
        all that follows and inserting in lieu thereof ``for dependents 
        of active-duty members of the armed forces.'';
            (2) in subsection (f)(1)--
                    (A) by striking out ``the sum of''; and
                    (B) by amending clauses (A) and (B) to read as 
                follows:
                    ``(A) for the first 120 days of coverage, an amount 
                equal to 10 percent (for coverage of an individual), or 
                20 percent (for coverage of self and one or more 
                dependents), of the average total cost to a covered 
                person and the Department of Defense for health-care 
                benefits provided for beneficiaries eligible for 
                continued coverage under subsection (b)(1) and for 
                medical care --under section 1079(a) of this title; and
                    ``(B) for coverage beyond the first 120 days, an 
                amount equal to that average total cost plus 2 
                percent.''; and
            (3) by adding at the end the following new subsection:
    ``(h) Secondary Coverage.--Coverage under this section shall be 
secondary to any other entitlement or eligibility that the covered 
individual may have under a private health-care plan or private 
insurance for the care otherwise covered under this section.''.
    (b) Conversion to Improved Policies.--(1) On or after the effective 
date of the amendments made by this section, a person covered by a 
continued health-care policy under section 1078a of title 10, United 
States Code, may cancel that policy and enroll in a plan under that 
section as amended by this section.
    (2) The Secretary of Defense shall take action to provide timely 
notification to all persons who are eligible for improved benefits 
under the amendments made by this section.
    (c) Effective Date.--The amendments made by this section shall take 
effect 6 months after the date of the enactment of this Act.

SEC. 302. PROCUREMENT OF MEDICAL ITEMS.

    (a) Unified Procurement.--(1) The Secretaries of Defense and 
Veterans Affairs shall--
            (A) jointly establish policies for the unified procurement 
        of pharmaceuticals, medical and surgical supplies, and medical 
        equipment for the Departments of Veterans Affairs and Defense; 
        and
            (B) enter into a memorandum of understanding for (i) 
        implementing those policies, (ii) establishing in either 
        department an office for such unified procurement, and (iii) 
        providing for the continuing support, staffing, and 
        administration of that office.
    (2) Funding for the making of procurements by the office and for 
the personnel and administrative expenses of the office shall be 
derived, as provided in the agreement, from (A) the revolving supply 
fund referred to in section 8121(a) of title 38, United States Code, 
and (B) funds available to the Department of Defense for the 
procurement of the types of items described in paragraph (1) and the 
costs of making such procurements.
    (b) The Secretaries of Defense and Veterans Affairs shall complete 
the actions required by this section no later than one year after the 
date of the enactment of this Act.

SEC. 303. JOINT FORMULARY.------

    (a) Requirement for Joint Formulary.--The Secretaries of Defense 
and Veterans Affairs shall develop and maintain a clinically-based 
formulary for use by both of their respective departments.
    (b) Process for Selecting Items.--The decisions as to which 
medications to include in the formulary shall be made after 
recommendations are made by a committee of physicians, pharmacists, and 
other appropriate health-care professionals selected by the Under 
Secretary for Health of the Department of Veterans Affairs and the 
Assistant Secretary for Health Affairs of the Department of Defense. 
Decisions regarding the inclusion of items in the formulary shall not 
be subject to review in any court.
    (c) Exception From Requirement for Competition.--The Secretaries of 
Defense and Veterans Affairs may, at their sole discretion, procure 
items listed on the formulary without seeking competition.
    (d) Definition.--For the purposes of this section, the term 
``formulary'' means a list of prescription medications that is 
periodically updated and reflects the clinical judgment of health-care 
providers and experts in the diagnosis and treatment of disease as to 
which medications are necessary and appropriate to have available in a 
health-care system.
    (e) Deadline.--The Secretaries shall establish the formulary 
required by this section no later than one year after the date of the 
enactment of this Act.

SEC. 304. UNIFORM PRODUCT NUMBERS FOR MEDICAL AND SURGICAL SUPPLIES.---
              ------

    (a) Requirement for Universal Product Numbers.--Beginning one year 
after the date of the enactment of this Act, no medical or surgical 
product may be procured for the use of the Department of Defense or 
Veterans Affairs in either department's health-care system unless the 
product bears a universal product number or an exception for the 
procurement has been made pursuant to the regulations prescribed under 
subsection (b).
    (b) Regulations.--As soon as possible after the enactment of this 
Act, the Secretaries of Defense and Veterans Affairs shall jointly 
prescribe regulations for the implementation of this section. The 
regulations may allow for the procurement of a medical or surgical 
product not bearing a universal product number only where an exception 
is required by considerations of health and safety.
    (c) Definition.--For the purposes of this section, the term 
``universal product number'' means a number that--
            (1) is affixed by the manufacturer to each individual item;
            (2) uniquely identifies that item at each packaging level, 
        including -packaging for individual use; and
            (3) is based on commercially acceptable identification 
        standards -established by the Uniform Code Council--
        International Article Numbering -system and by the Health 
        Industry Business Communication Council.

SEC. 305. COMPATIBLE COMPUTER SYSTEMS.--

    (a) Health Information Management Systems.--(1) The Secretaries of 
Defense and Veterans Affairs shall jointly--
            (A) offer a single solicitation for the replacement of the 
        existing -legacy medical information management systems (known 
        as the -``Composition Health Care System'' in the Department of 
        Defense and -``VistA'' in the Department of Veterans Affairs) 
        with integrated and interoperable systems able to meet the 
        needs of the health-care systems of both departments; and
            (B) develop policies to ensure that--
                    (i) all procurements of items that enhance or 
                replace part or all of the health information 
                management system of either the Department of Defense 
                or the Department of Veterans Affairs are jointly 
                planned and carried out and make use of commercially 
                available technology; and
                    (ii) the departments jointly develop and implement 
                a common set of technical and data standards that will 
                make possible the direct, efficient, and reliable 
                exchange of data between the health information 
                management systems of the departments.
    (2) For the purposes of this subsection, the term ``health 
information management system'' means an automated information 
technology system, including both hardware and software, that stores 
data and produces information for use in, or relevant to, health-care 
services and patient records, health-care quality assurance, health-
care costing, pricing, and billing systems, and health-care management 
decisions.
    (b) Cost-Accounting Systems.--The Secretaries of Defense and 
Veterans Affairs shall--
            (1) take immediate action to ensure that data from their 
        departments' health-care cost accounting systems are comparable 
        and compatible; and
            (2) ensure that future cost-accounting data of the two 
        departments -are always comparable and compatible.

SEC. 306. MEDICAL RESEARCH.-----

    (a) Public Awareness.--The Secretaries of Defense and Veterans 
Affairs shall undertake a program of public education designed to 
ensure public awareness of the benefits of the health-care research 
that their departments conduct. In carrying out the program, the 
Secretaries may use paid advertising.
    (b) Financial Return.--The Secretaries of Defense and Veterans 
Affairs shall establish policies designed to ensure that their 
departments receive a financial return on the department's health-care 
research programs. These policies shall include, but not be limited to, 
appropriate use of the authorities to share medical resources, enter 
into cooperative research and development agreements under the Federal 
Technology Transfer Act, and the authority to obtain and benefit from 
patents and copyrights.

SEC. 307. PILOT PROGRAM FOR FURNISHING VETERANS FEE-BASIS CARE UNDER 
              TRICARE CONTRACTS.

    (a) Requirement for Pilot Program.--The Secretaries of Defense and 
Veterans Affairs shall enter into an agreement for the conduct of a 
pilot program under which hospital care and medical services authorized 
to be furnished by contract under section 1703 of title 38, United 
States Code, is furnished by contractors under contracts entered into 
under section 1097 of title 10, United States Code. The Department of 
Veterans Affairs shall reimburse the Department of Defense for care 
furnished under the pilot program at rates provided for in the 
agreement.
    (b) Scope.--The pilot program shall be conducted during fiscal 
years 2000 and 2001 and shall be of such scope and duration as will 
provide a basis for determining whether the method of furnishing care 
under the program can improve veterans' access to care and reduce the 
costs of care to the Department of Veterans Affairs without diminishing 
quality of care.
    (c) Report.--Not later than December 31, 2000, the Secretaries of 
Defense and Veterans Affairs shall submit to the Committees on 
Veterans' Affairs of the Senate and the House of Representatives, the 
Committee on Armed Services of the Senate, and the Committee on 
National Security of the House of Representatives a report on the 
experience under the pilot program. The Secretaries shall include in 
the report their findings and any recommendations they may have for 
legislation based on the experience under the pilot program.

SEC. 308. REVIEWS OF GRADUATE MEDICAL EDUCATION PROGRAMS.

    (a) Review of Graduate Medical Education Programs; Report.--(1) The 
Secretary of Defense, the Secretary of Health and Human Services, and 
the Secretary of Veterans Affairs shall jointly conduct a review of the 
various forms of federal support provided to teaching hospitals and 
medical schools, including the following:
            (A) Payments under section 1886(h) of the Social Security 
        Act (42 U.S.C. 1395ww(h)) (direct graduate medical education 
        payments).
            (B) Adjustments to Medicare payments under section 
        1886(d)(5)(B) of that Act (42 U.S.C. 1395ww(d)(5)(B)) (indirect 
        medical education adjustments).
            (C) The graduate medical education programs of the 
        Departments of Defense and Veterans Affairs.
    (2) Not later than August 31, 2000, the Secretaries shall submit to 
the appropriate Committees of the Congress a report on that review, 
including--
            (A) the Secretaries' views on whether, based on the review, 
        there are opportunities for greater coordination and efficiency 
        in the provision of federal support of teaching hospitals and 
        medical schools;
            (B) any plans that the Secretaries have for achieving the 
        benefits of such opportunities; and
            (C) any recommendations that the Secretaries have for 
        legislation.
    (b) Review of DoD/VA Collaboration; Report.--(1) The Secretaries of 
Defense and Veterans Affairs shall jointly conduct a review of the 
extent and nature of the collaboration between the graduate medical 
education programs of their departments and take any actions necessary 
to achieve the benefits of opportunities that they find for greater 
collaboration.
    (2) Not later than August 31, 2000, the Secretaries shall submit to 
the Committees on Veterans' Affairs of the Senate and the House of 
Representatives, the Committee on Armed Services of the Senate, and the 
Committee on National Security of the House of Representatives, a 
report on that review, including--
            (A) the Secretaries views on whether, based on the review, 
        there are greater opportunities for collaboration between the 
        departments' programs;
            (B) the Secretaries plans for achieving the benefits of 
        those opportunities; and
            (C) any recommendations that the Secretaries have for 
        legislation.

SEC. 309. SERVICES FOR HOMELESS VETERANS.

    (a) VA's Grant and Per Diem Program.--The Homeless Veterans 
Comprehensive Service Programs Act of 1992 (Public Law 102-590) is 
amended--
            (1) in section 3(a), by striking out ``to furnish'' and 
        inserting in lieu thereof ``and expanding existing programs for 
        furnishing'';
            (2) in subsection (b) of section 4, by adding at the end 
        the following new sentence: ``The value of in-kind goods and 
        services provided by the grant recipient shall nevertheless be 
        included in the measurement of that cost even where they entail 
        no cost to the grant recipient.''; and
            (3) by amending the first sentence in section 12 to read as 
        follows: ``There is authorized to be appropriated to carry out 
        sections 3 and 4 of this Act $50 million for fiscal year 
        2000.''.
    (b) Funding for Community-Based Residential Treatment.--The 
Secretary of Veterans Affairs shall direct that a significant portion 
of the savings achieved by the Veterans Health Administration through 
the closure of acute care beds is redirected to the furnishing of 
community-based residential treatment of homeless veterans.
    (c) Utilization of Enhanced-Use Leases.--The Secretary of Veterans 
Affairs is urged to utilize the authority under subchapter V of chapter 
81 of title 38, United States Code, to enter into enhanced-use leases 
in order to provide support for community-based residential care for 
homeless veterans.
    (d) Homeless Veterans Reintegration Project.--The Stewart B. 
McKinney Homeless Assistance Act is amended--
            (1) in section 738(e)(1) (42 U.S.C. 11448(e)(1)), by adding 
        at the end the following new subparagraphs:
                    ``(H) $10,000,000 for fiscal year 2000.
                    ``(I) $10,000,000 for fiscal year 2001.''; and
            (2) in section 741 (42 U.S.C. 11450), by striking out 
        ``December 31, 1999'' and inserting in lieu thereof ``December 
        31, 2001''.

                       TITLE IV--ECONOMIC EQUITY

                   PART A--HOME LOAN GUARANTY PROGRAM

SEC. 401. LIMITATION ON BASIC ENTITLEMENT.

    (a) Prospective Limitation to One-Time Use.--Section 3703(a)(1) of 
title 38 is amended by striking out subparagraph (B) and inserting in 
lieu thereof:
    ``(B) The maximum amount of guaranty entitlement available to a 
veteran for purposes specified in section 3710 shall be $36,000 or, in 
the case of a loan described in subparagraph (A)(i)(IV) of this 
paragraph, $50,750.
    ``(C)(i) With respect to a veteran who first entered active duty on 
or before the date of the enactment of the Servicemembers and Veterans 
Transition Services Improvement Act of 1999, or, in the case of a 
veteran described in section 3701(b)(5)(A), first entered the Selected 
Reserve on or before that date, the amount of guaranty entitlement 
specified in subparagraph (B) shall be reduced by the amount of 
entitlement previously used by the veteran under this chapter and not 
restored as a result of the exclusion in section 3702(b).
    ``(ii) Except as provided in clause (iii), a veteran who first 
entered active duty after the date specified in clause (i) and a 
veteran described in section 3701(b)(5)(A) who first entered the 
Selected Reserve after that date, shall be entitled to have only one 
loan guaranteed, insured, or made under this chapter.
    ``(iii) Nothing in clause (ii) shall preclude a veteran who has 
obtained a loan guaranteed, insured, or made under this chapter from 
refinancing that loan with a loan guaranteed under section 
3710(a)(8).''.
    (b) Conforming Amendment.--Section 3702(b) of title 38 is amended 
by striking out in the matter preceding paragraph (1) ``to a veteran 
under this chapter'' and inserting in lieu thereof ``under this chapter 
to a veteran described in section 3703(a)(1)(C)(i)''.

SEC. 402. LOAN GUARANTY ELIGIBILITY FOR RESERVISTS.

    (a) Permanent Program.--Section 3702(a)(2)(E) of title 38 is 
amended by striking out ``For the period beginning on October 28, 1992, 
and ending on October 7, 1999, each'' and inserting in lieu thereof, 
``Each''.
    (b) Certificates of Eligibility.--Section 3701(b)(5) is amended by 
inserting after subparagraph (B) the following new subparagraph:
            ``(C)(i) The Secretary of Defense, in consultation with the 
        Secretary, shall develop a uniform certificate for use by all 
        reserve components to certify that a member or former member of 
the Selected Reserve has fulfilled the service requirements described 
in subparagraph (A).
            ``(ii) The Secretary of Defense shall implement, not later 
        than one year after the date of the enactment of the 
        Servicemembers and Veterans Transition Assistance Improvement 
        Act of 1999, a system designed to ensure that the certificate 
        is issued to each eligible person who serves in the Selected 
        Reserve on or after the system is implemented. The certificate 
        shall be issued as soon as possible after the eligible person 
        has fulfilled the service requirements described in 
        subparagraph (A).
            ``(iii) The Secretary of Defense shall, upon request, issue 
        the certificate to any other eligible member or former member 
        of the Selected Reserve.''.

SEC. 403. PROSPECTIVE ELIMINATION OF LOAN FEE.

    (a) Exemption for New Servicemembers.--Paragraph (1) of section 
3729(c) is amended to read as follows:
    ``(c)(1) A fee may not be collected under this subsection from--
            `(A) a veteran who is receiving compensation (or who but 
        for the receipt -of retirement pay would be entitled to receive 
        compensation);
            ``(B) a surviving spouse of any veteran (including a person 
        who died in the active military, naval, or air service) who 
        died from a service-connected -disability;
            ``(C) a veteran who first entered active duty after the 
        date of the -enactment of the Servicemembers and Veterans 
        Transition Services -Improvement Act of 1999; or
            ``(D) a veteran described in section 3701(b)(5)(A) who 
        first entered the Selected Reserve after that date.''.

SEC. 404. PILOT PROGRAM OF REVISED PROCEDURES IN DEFAULT CASES.--------
              ---

    (a) Payment of Guaranty.--Section 3732 of title 38 is amended by 
inserting at the end the following new subsection--
    ``(d)(1) Notwithstanding any other provision of this section, the 
Secretary shall conduct in selected test sites a pilot program of 
revised procedures in cases of defaults. Under the pilot program, loan 
holders are not permitted to convey to the United States, and the 
Secretary may not accept conveyance of, the property that secured a 
loan guaranteed under this chapter.
    ``(2)(A) For the purposes of this subsection, the term `test site' 
shall mean a geographic area known as a Service Delivery Network of the 
Veterans Benefits Administration that the Secretary designates for the 
conduct of the pilot program.
    ``(B) Not later than 90 days after the date of the enactment of the 
Servicemembers and Veterans Transition Services Improvement Act of 
1999, the Secretary shall publish in the Federal Register, without any 
requirement for prior notice and comment, a notice designating one or 
more test sites and describing the geographic areas covered by the 
Service Delivery Networks involved.
    ``(3) Either simultaneously with the publication of the notice 
described in paragraph (2)(B) or thereafter, the Secretary shall 
publish proposed rules for notice and comment regarding the procedures 
for liquidating loans and paying guaranty claims under the pilot 
program. The regulations may include a modified definition of `net 
value' that recognizes that the holder will have the responsibility for 
disposing of the property.
    ``(4) The pilot program will apply to all loans closed in the test 
site or sites beginning on the first day of the first month that begins 
more than 60 days after the date of the publication of the final 
version of the regulations described in paragraph (3).
    ``(5) The pilot program shall run for 5 years from the first day of 
the month described in paragraph (4).
    ``(6) Not later than the end of the fourth year of the pilot 
program, the Secretary shall submit to the Committees on Veterans' 
Affairs of the Senate and the House of Representative a report on the 
experience under the program. The report shall include--
            ``(A) information regarding--
                    ``(i) the impact of the program on the availability 
                of home-loan -financing to veterans;
                    ``(ii) the extent to which following the procedures 
                of the program may -reduce the personnel requirements 
                of the loan guaranty program under this -chapter; and
                    ``(iii) the extent to which following the 
                procedures of the program may -increase or decrease the 
                costs to the United States of the loan guaranty -
                program; and
            ``(B) any recommendations that the Secretary has for 
        legislative action.''.

                         PART B--OTHER PROGRAMS

SEC. 411. PARTICIPATION IN FEDERAL EMPLOYEES' THRIFT SAVINGS PLAN.-----
              -----

    (a) General.--Subchapter III of chapter 84 of title 5 is amended by 
adding at the end the following new section:
``Sec. 8440e. Members of the Armed Forces
    ``(a)(1) A member of the armed forces serving on active duty may 
elect to contribute to the Thrift Savings Plan.
    ``(2) An election may be made under paragraph (1) only during a 
period provided under section 8432(b) for individuals subject to 
chapter 84.
    ``(b)(1) Except as otherwise provided in this subsection, the 
provisions of this subchapter and subchapter VII shall apply with 
respect to a member of the armed forces making contributions to the 
Thrift Savings Fund.
    ``(2) A member of the Armed Forces may not contribute more than 5 
percent of the member's basic pay but may contribute any part or all 
the member's reenlistment bonus.
    ``(3) No contributions may be made for the benefit of the member 
under section 8432.
    ``(4) The transfer of a member from one branch of the armed forces 
to another, without a break in service of more than 30 days, shall not 
be considered to be a separation from service that entitles the member 
to a withdrawal of the member's account under the Thrift Savings Plan.
    ``(c) The Executive Director, after consultation with the Secretary 
of Defense, may prescribe regulations to carry out this section.
    ``(d) For the purposes of this section, the terms `active duty' and 
`armed forces' have the meanings provided in subsections (d)(1) and 
(a)(4) of section 101 of title 10.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 84 of title 5 is amended by inserting after the reference to 
section 8440d the following:

``8440e. Members of the Armed Forces.''.
    (c) Effective Date.--This section shall take effect 180 days after 
the date of the enactment of this Act.

SEC. 412. ENHANCEMENT OF ECONOMIC OPPORTUNITY THROUGH 
              ENTREPRENEURSHIP.-------

    (a) Establishment of Office of Veterans Business Assistance.--Part 
V of title 38 is amended by adding at the end the following new 
chapter:

          ``CHAPTER 79--OFFICE OF VETERANS BUSINESS ASSISTANCE

``Sec.
``7901. Organization of the Office.
``7902. Functions of the Office.
``Sec. 7901. Organization of the Office
    ``(a) There shall be established in the Office of the Secretary an 
Office of Veterans Business Assistance. The primary function of the 
Office of Veterans Business Assistance shall be to carry out a program 
of comprehensive business assistance to veterans.
    ``(b) The Secretary shall--
            ``(1) appoint a Director of the Office of Veterans Business 
        Assistance; and
            ``(2) shall assign to that office such personnel, and 
        allocate to that office such resources, as are necessary for 
        the office to carry out its responsibilities under this 
        chapter.
``Sec. 7902. Functions of the Office
    ``(a) The Office of Veterans Business Assistance shall administer a 
program that makes available to veterans:
            ``(1) access to information regarding (A) the services and 
        assistance available to veterans who wish to operate small 
        businesses, and (B) other subjects of use to such veterans;
            ``(2) assistance in gaining access to capital;
            ``(3) management assistance; and
            ``(4) assistance in gaining access to markets for their 
        products or services.
    ``(b) In carrying out the programs under subsection (a), the Office 
of Veterans Business Assistance shall:
            ``(1) create and maintain an information clearinghouse 
        through an electronic site on the internet that displays 
        information regarding Federal, State, local, and private sector 
        programs of assistance to veterans and others, the offices 
        where detailed such information can be obtained, and a 
        description of those programs;
            ``(2) in cooperation with the Department of Defense, 
        provide servicemembers and veterans, through a site on the 
        internet or correspondence study, self-directed business 
        education programs whereby servicemembers and veterans can earn 
        college credit in the fields of business fundamentals, 
        accounting, marketing, and other subjects appropriate for 
        operators of new small businesses;
            ``(3) consult with the Small Business Administration in 
        order to assist the Administration to expand and adapt its 
        internet-based database containing information on small 
        businesses wishing to do business with the Federal government 
        (known as ``PRO-NET'') so as to enable veterans to have 
        information regarding their businesses, along with their 
        veteran and disability status, included in the database.''.
    (b) Loans for Veterans' Small Businesses.--(1) Section 631 of title 
15 is amended by adding at the end the following new subsections:
    ``(o) `Veterans' small business concern' defined--
            ``(1) For the purposes of this chapter, the term `veterans' 
        small business concern' means a small business concern--
                    ``(A) of which at least 51 percent is owned by one 
                or more veterans, or in the case of a publicly-owned 
                business, at least 51 percent of the stock of which is 
                owned by one or more veterans; and
                    ``(B) whose management and daily business operation 
                are controlled by veterans.
            ``(2) For the purposes of this subsection, the term 
        `veteran' has the meaning provided in section 101(2) of title 
        38.
    ``(p) Disabled veterans' small business concern defined--
            ``(1) For the purposes of this chapter, the term `disabled 
        veterans' small business concern' means a small business 
        concern--
                    ``(A) of which at least 51 percent is owned by one 
                or more veterans who have service-connected 
                disabilities rated as 50 percent or more disabling for 
                purposes of chapter 11 of title 38, or in the case of a 
                publicly-owned business, at least 51 percent of the 
                stock of which is owned by one or more such veterans; 
                and
                    ``(B) the management and daily business operations 
                of which are controlled by such veterans.
            ``(2) For the purposes of this subsection--
                    ``(A) the term `veteran' has the meaning provided 
                in section 101(2) of title 38; and
                    ``(B) the term `service-connected' has the meaning 
                provided in section 101(16) of title 38.''.
    (2) Section 636(a) of title 15 is amended--
            (A) in the first sentence by inserting ``veterans' small 
        business concerns and disabled veterans' small business 
        concerns'' after ``tribes,''; and
            (B) in paragraph (2), by inserting at the end the following 
        new subparagraph:
    ``(D) Loans to veterans' small business concerns.--The target for 
the total amount of loans to veterans' small business concerns under 
this subsection shall be $10 million per fiscal year. The making of 
such loans shall be given weight by Federal financial supervisory 
agencies in determining whether the lender is meeting the credit needs 
of its entire community for purposes of the Community Reinvestment Act 
of 1977 (chapter 30 of title 12, United States Code).''.
    (c) Federal Subcontracts.--Section 637(a)(4) of title 15 is 
amended--
            (1) in clause (i) of subparagraph (A), by striking out 
        ``or'' after ``tribe),'' and by inserting ``or (IV) a disabled 
        veterans' small business concern,'' after ``organization,'';
            (2) in clause (ii) of subparagraph (A), by striking out 
        ``or'' after ``tribe),'' and by inserting a comma and ``or (IV) 
        a disabled veterans' small business concern'' before the period 
        at the end; and
            (3) in subparagraph (B), by striking out ``or'' after 
        ``subparagraph (A)(ii)(II),'' and by inserting a comma and ``or 
        (iv) a disabled veterans' small business concern'' before the 
        period at the end.
    (d) Goals for Veterans' Businesses in Federal Procurements.--
Section 644(g)(1) of title 15 is amended--
            (1) in the first sentence, by inserting ``veterans' small 
        business concerns and disabled veterans' small business 
        concerns'' after ``disadvantaged individuals''; and
            (2) by adding at the end the following new sentences: ``The 
        goals for the Departments of Defense, Labor, and Veterans 
        Affairs for participation by veterans' small business concerns 
        shall be established at not less than X percent of the total 
        value of all prime contract and subcontract awards for each 
        department for each year and, for participation by disabled 
        veterans' small business concerns, not less than Y percent of 
        all prime contract and subcontract awards for each fiscal 
        year.''.
    (e) Outreach on Federal Procurement Opportunities.--The Secretary 
of Veterans Affairs, the Secretary of Labor, and the Administrator of 
the Small Business Administration shall jointly develop and submit to 
the President a program of comprehensive outreach to assist veteran 
entrepreneurs. The program shall include information on procurement 
opportunities within Federal departments and agencies. Following 
receipt of the proposed program, the President shall direct that such a 
program be conducted through the Offices of Small and Disadvantaged 
Business Utilization in the departments and agencies.

SEC. 413. TERMINATION OF THE PERSIAN GULF WAR PERIOD FOR PURPOSES OF 
              VETERANS' BENEFITS.

    (a) Termination Date.--Paragraph (33) of section 101 of title 38 is 
amended by striking out ``the date'' and all that follows and inserting 
in lieu thereof ``February 28, 1993.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act and shall not 
apply only to benefits and services for which an application was 
submitted before that date.

                   TITLE V--ORGANIZATIONAL STRUCTURE

SEC. 501. JOINT HEALTH-CARE POLICY STAFF.

    (a) Joint Staff.--The Under Secretary for Health of the Department 
of Veterans Affairs and the Assistant Secretary for Health Affairs of 
the Department of Defense shall establish a unified, joint policy staff 
that will have responsibility for (1) identifying opportunities to 
increase joint, cooperative, and coordinated operations in the health-
care systems of the departments and the sharing of health-care 
resources by the two departments, and (2) initiating, facilitating, and 
monitoring efforts to take advantage of those opportunities.
    (b) Principles.--The joint staff shall be guided by the following 
principles:
            (1) The departments should promote the enhancement of 
        military medical readiness.
            (2) The departments should provide access to high quality 
        health care in the most cost-effective manner possible.
            (3) the departments must focus on the needs of their 
        beneficiaries rather than their systems and traditional 
        political concerns.
            (4) The departments should seek to maximize the number of 
        beneficiaries served within available resources.
            (5) The departments should provide their beneficiaries with 
        choices of health-care options and providers.
            (6) The departments should incorporate information 
        technology and managerial cost accounting systems as major 
        enablers of a greater partnership between the departments.

SEC. 502. CARE FOR DEPARTMENT OF DEFENSE AND DEPARTMENT OF VETERANS 
              AFFAIRS BENEFICIARIES AT OTHER SYSTEM'S FACILITIES.

    (a) Beneficiaries' Eligibility.--Any person who is an eligible 
health-care beneficiary of either the Department of Veterans Affairs or 
the Department of Defense shall, in accordance with policies and 
procedures adopted under subsection (b), be eligible to receive from 
the other department the same kinds of health-care services that the 
beneficiary is eligible to receive from the department of which that 
person is a primary beneficiary.
    (b) Joint Policies.--The Secretaries of Defense and Veterans 
Affairs shall jointly establish policies and procedures for their 
respective departments to furnish health care to the eligible health-
care beneficiaries of the other department. Those policies and 
procedures shall--
            (1) provide for protections against the denial or delay of 
        services from a department to its primary beneficiaries as the 
        result of furnishing care to the beneficiaries of the other 
        department;
            (2) include such limitations on the furnishing of care by a 
        department to persons who are not the primary beneficiaries of 
        that department as are necessary to protect against 
        overcrowding at the department's facilities;
            (3) provide for rates of reimbursement for the care 
        provided by a department to persons who are the primary 
        beneficiaries of the other department; and
            (4) establish such other conditions for the furnishing of 
        health-care by a department to persons who are not that 
        department's primary beneficiaries as are necessary to provide 
        for the orderly and efficient furnishing of care by that 
        department.
    (c) Special Authorities.--The Secretaries of Defense and Veterans 
Affairs shall, in the interest of efficiency in the administration of 
health-care services, have the authority to include in the policies and 
procedures adopted under subsection (b) authorities--
            (1) to waive copayments and deductibles and limitations on 
        the kinds of services for which a beneficiary may be eligible; 
        and
            (2) to leave in place or jointly modify or revoke sharing 
        agreements under section 1104 of title 10 and section 8111 of 
        title 38, United States Code.
    (d) Definitions.--For the purposes of this section--
            (1) the term ``eligible health-care beneficiary'' means a 
        person who has eligibility to receive health-care from the 
        Department of Veterans Affairs -under title 38, United States 
        Code (other than under section 1711(b)) of that -title) or from 
        the Department of Defense under chapter 55 of title 10, United 
        -States Code; and
            (2) the term ``primary beneficiary'' means, in the case of 
        the Department of -Veterans Affairs, an eligible health-care 
        beneficiary who has eligibility under such title 38 and, in the 
        case of the Department of Defense, an eligible health-care 
        beneficiary who has eligibility under such chapter 55.

SEC. 503. STUDY OF INFRASTRUCTURE REALIGNMENT.

    (a) Requirement for Study.--The Secretaries of Defense and Veterans 
Affairs shall jointly enter into an agreement with an independent 
entity for the study of the physical infrastructure, the organizational 
structures, and the operations of the health-care systems of the 
Departments of Defense and Veterans Affairs.
    (b) Purposes of Study.--(1) The purposes of the study required by 
subsection (a) shall be--
            (A) to examine the opportunities for joint operations, 
        including the joint operation of medical facilities, of the 
        health-care systems of the Departments of Defense and Veterans 
        Affairs; and
            (B) determine the most effective process by which joint 
        operations that -would contribute to the most cost-effective 
        furnishing of quality health-care -services in response to 
        demands of the beneficiaries of the two system could -be 
        achieved.
    (2) In making the determination required by paragraph (1)(B), the 
entity conducting the study shall consider, among other options, the 
advisability of legislation--
            (A) establishing a commission that would (i) obtain 
        recommendations from the two departments, (ii) take into 
        account the medical needs that would -result from a worst-case 
        wartime scenario, and (iii) formulate its own -recommendations 
        for best conforming the operations and physical -infrastructure 
        of the departments to the demand for care from the eligible -
        beneficiaries of the two departments; and
            (B) providing for the President either to reject the 
        commission's -recommendations or to forward them without 
        amendment to Congress for -consideration under a process 
        whereby Congress, under procedures for -expedited 
        consideration, could either reject the recommendations or enact 
        -them into law without amendment.
    (c) Report.--(1) The agreement under subsection (a) shall require 
the entity conducting the study to submit to the Secretaries of Defense 
and Veterans Affairs, not later than one year after the date of the 
enactment of this Act, a report containing the entity's findings and 
recommendations
    (2) Not later than 90 days after receiving the report, the 
Secretaries shall jointly submit to the Committees on Veterans' Affairs 
of the Senate and the House of Representatives, the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives copies of the report, together with the 
comments and recommendations of the Secretaries.
    (d) Funding.--The Secretaries of Defense and Veterans Affairs shall 
share the costs of the study evenly, utilizing funds appropriated to 
their respective departments for the furnishing of health care.

SEC. 504. CONGRUENT GEOGRAPHIC ADMINISTRATIVE STRUCTURES.--------

    The Secretaries of Defense and Veterans Affairs shall--
            (1) conduct a review of the geographic boundaries of the 
        administrative -structures of the field operations of the 
        Departments of Defense and -Veterans Affairs health-care 
        systems (known as Regions in the Department -of Defense and 
        Veterans Integrated Service Networks in the Department of -
        Veterans); and
            (2) take action to make those boundaries congruent except 
        where doing so would interfere with the efficient furnishing of 
        quality health-care services.

SEC. 505. UTILIZATION OF VA MEDICAL FACILITIES AS TRICARE PROVIDERS.---
              --

    The Secretary of Defense, at the time of the award or extension of 
contracts under section 1097 of title 10, United States Code (known as 
TRICARE contracts), shall recognize as military treatment facility 
equivalents in the geographic areas covered by those contracts 
Department of Veterans Affairs health-care facilities that (1) agree to 
furnish health-care services to Department of Defense beneficiaries in 
those areas at or below the prices that non-government facilities would 
charge; (2) are capable of furnishing care of acceptable quality; and 
(3) certify that they are able to furnish those services without 
detriment to the furnishing of care to veterans.
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