II

107TH CONGRESS

1ST SESSION S. 1488

To amend title 38, United States Code, to authorize a cost-of-living adjustment in the rates of disability compensation for veterans with serviceconnected disabilities and dependency and indemnity compensation for

the survivors of certain disabled veterans, to make modifications in the

veterans home loan guaranty program, to make permanent certain temporary authorities, and for other purposes.

IN THE SENATE OF THE UNITED STATES

OCTOBER 3, 2001

Mr. ROCKEFELLER (by request) introduced the following bill; which was read

twice and referred to the Committee on Veterans’ Affairs

A BILL

To amend title 38, United States Code, to authorize a costof-living adjustment in the rates of disability compensation for veterans with service-connected disabilities and

dependency and indemnity compensation for the survivors of certain disabled veterans, to make modifications

in the veterans home loan guaranty program, to make

permanent certain temporary authorities, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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S 1488 IS

1 SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38,

2 UNITED STATES CODE; TABLE OF CONTENTS.

3 (a) SHORT TITLE.—This Act may be cited as the

4 ‘‘Veterans’ Benefits Act of 2001’’.

5 (b) REFERENCES.—Except as otherwise expressly

6 provided, whenever in this Act an amendment or repeal

7 is expressed in terms of an amendment to, or repeal of,

8 a section or other provision, the reference shall be consid9 ered to be made to a section or other provision of title

10 38, United States Code.

11 (c) TABLE OF CONTENTS.—The table of contents for

12 this Act is as follows:

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

TITLE I—COMPENSATION PROGRAM

Sec. 101. Increase in compensation rates and limitations.

Sec. 102. Rounding down of cost-of-living adjustments in compensation and

DIC rates.

TITLE II—HOUSING LOANS

Sec. 201. Vendee loan authority.

Sec. 202. Loan fees.

Sec. 203. Procedures on default.

TITLE III—TEMPORARY AUTHORITIES MADE PERMANENT

Sec. 301. Income verification authority.

Sec. 302. Limitation on pension for certain recipients of medicaid-covered nursing home care.

Sec. 303. Health-care and medication copayments.

Sec. 304. Third-party insurance collections.
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1 TITLE I—COMPENSATION

2 PROGRAM

3 SEC. 101. INCREASE IN COMPENSATION RATES AND LIMI4 TATIONS.

5 (a) RATE ADJUSTMENT.—The Secretary of Veterans

6 Affairs shall, effective on December 1, 2001, increase the

7 dollar amounts in effect for the payment of disability com8 pensation and dependency and indemnity compensation by

9 the Secretary, as specified in subsection (b).

10 (b) AMOUNTS TO BE INCREASED.—The dollar

11 amounts to be increased pursuant to subsection (a) are

12 the following:

13 (1) COMPENSATION.—Each of the dollar

14 amounts in effect under section 1114 of title 38,

15 United States Code.

16 (2) ADDITIONAL COMPENSATION FOR DEPEND17 ENTS.—Each of the dollar amounts in effect under

18 section 1115(1) of such title.

19 (3) CLOTHING ALLOWANCE.—The dollar

20 amount in effect under section 1162 of such title.

21 (4) NEW DIC RATES.—The dollar amounts in

22 effect under paragraphs (1) and (2) of section

23 1311(a) of such title.
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1 (5) OLD DIC RATES.—Each of the dollar

2 amounts in effect under section 1311(a)(3) of such

3 title.

4 (6) ADDITIONAL DIC FOR SURVIVING SPOUSES

5 WITH MINOR CHILDREN.—The dollar amount in ef6 fect under section 1311(b) of such title.

7 (7) ADDITIONAL DIC FOR DISABILITY.—The

8 dollar amounts in effect under sections 1311(c) and

9 1311(d) of such title.

10 (8) DIC FOR DEPENDENT CHILDREN.—The

11 dollar amounts in effect under sections 1313(a) and

12 1314 of such title.

13 (c) DETERMINATION OF INCREASE.—(1) The in14 crease under subsection (a) shall be made in the dollar

15 amounts specified in subsection (b) as in effect on Novem16 ber 30, 2001.

17 (2) Except as provided in paragraph (3), each such

18 amount shall be increased by the same percentage as the

19 percentage by which benefit amounts payable under title

20 II of the Social Security Act (42 U.S.C. 401 et seq.) are

21 increased effective December 1, 2001, as a result of a de22 termination under section 215(i) of such Act (42 U.S.C.

23 415(i)).
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1 (3) Each dollar amount increased pursuant to para2 graph (2) shall, if not a whole dollar amount, be rounded

3 down to the next lower whole dollar amount.

4 (d) SPECIAL RULE.—The Secretary may adjust ad5 ministratively, consistent with the increases made under

6 subsection (a), the rates of disability compensation pay7 able to persons within the purview of section 10 of Public

8 Law 85–857 (72 Stat. 1263) who are not in receipt of

9 compensation payable pursuant to chapter 11 of title 38,

10 United States Code.

11 (e) PUBLICATION REQUIREMENT.—At the same time

12 as the matters specified in section 215(i)(2)(D) of the So13 cial Security Act (42 U.S.C. 415(i)(2)(D)) are required

14 to be published by reason of a determination made under

15 section 215(i) of such Act during fiscal year 2002, the

16 Secretary shall publish in the Federal Register the

17 amounts specified in subsection (b) as increased under

18 this section.

19 SEC. 102. ROUNDING DOWN OF COST–OF–LIVING ADJUST20 MENTS IN COMPENSATION AND DIC RATES.

21 (a) COMPENSATION COLAS.—Section 1104(a) is

22 amended by striking out ‘‘fiscal years 1998 through

23 2002.’’

24 (b) DIC COLAS.—Section 1303(a) is amended by

25 striking out ‘‘fiscal years 1998 through 2002.’’
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1 TITLE II—HOUSING LOANS

2 SEC. 201. VENDEE LOAN AUTHORITY.

3 (a) TERMINATION OF VENDEE LOAN AUTHORITY.—

4 Section 3733(a) is amended by striking out paragraphs

5 (1) and (2) in their entirety and inserting in lieu thereof:

6 ‘‘(1) Prior to October 1, 2001, the Secretary

7 may sell real property acquired by the Secretary as

8 the result of a default on a loan guaranteed or made

9 under this chapter with the purchase financed by a

10 loan made by the Secretary.’’.

11 (b) INTERNAL REVENUE CODE AMENDMENT.—Sec12 tion 6103(I)(7)(D) of the Internal Revenue Code of 1986,

13 is amended by striking out ‘‘Clause (viii) shall not apply

14 after September 30, 2003.’’

15 SEC. 302. LIMITATION ON PENSION FOR CERTAIN RECIPI16 ENTS OF MEDICAID–COVERED NURSING

17 HOME CARE.

18 Section 5503(f) is amended by striking out para19 graph (7).

20 SEC. 303. HEALTH CARE AND MEDICATION COPAYMENTS.

21 (a) Section 1710 is amended by striking out ‘‘before

22 September 30, 2002,’’ in subsection (f)(2)(B).

23 (b) Section 1722A is amended by striking out sub24 section (d).
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1 SEC. 304. THIRD–PARTY INSURANCE COLLECTIONS.

2 Section 1729 is amended by striking out ‘‘before Oc3 tober 1, 2002,’’ in subsection (a)(2)(E).

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