89–006

107TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 107–27

VETERANS OPPORTUNITIES ACT OF 2001

MARCH 26, 2001.—Committed to the Committee of the Whole House on the State

of the Union and ordered to be printed

Mr. SMITH of New Jersey, from the Committee on Veterans’ Affairs,

submitted the following

R E P O R T

[To accompany H.R. 801]

[Including cost estimate of the Congressional Budget Office]

The Committee on Veterans’ Affairs, to whom was referred the

bill (H.R. 801) to amend title 38, United States Code, to improve

programs of educational assistance, to expand programs of transition assistance and outreach to departing servicemembers, veterans, and dependents, to increase burial benefits, to provide for

family coverage under Servicemembers’ Group Life Insurance, and

for other purposes, having considered the same, reports favorably

thereon with an amendment and recommends that the bill as

amended do pass.

The amendment is as follows:

Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Veterans Opportunities Act of

2001’’.

(b) TABLE OF CONTENTS.—The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. References to title 38, United States Code.

TITLE I—EDUCATIONAL ASSISTANCE PROVISIONS

Sec. 101. Increase in maximum allowable annual Senior ROTC educational assistance for eligibility for benefits

under the Montgomery GI Bill.

Sec. 102. Expansion of work-study opportunities.

Sec. 103. Inclusion of certain private technology entities in the definition of educational institution.

Sec. 104. Expansion of special restorative training benefit to certain disabled spouses or surviving spouses.

Sec. 105. Distance education.

Sec. 106. Technical amendments to the Montgomery GI Bill.

TITLE II—TRANSITION AND OUTREACH PROVISIONS

Sec. 201. Authority to establish overseas veterans assistance offices to expand transition assistance.

Sec. 202. Timing of preseparation counseling.

Sec. 203. Improvement in education and training outreach services for separating servicemembers and veterans.

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Sec. 204. Expansion of outreach efforts to eligible dependents.

Sec. 205. Improvement of veterans outreach programs.

TITLE III—MEMORIAL AFFAIRS, INSURANCE, AND OTHER PROVISIONS

Sec. 301. Increase in burial benefits.

Sec. 302. Family coverage under Servicemembers’ Group Life Insurance.

Sec. 303. Retroactive applicability of increase in maximum SGLI benefit for members dying in performance of

duty on or after October 1, 2000.

Sec. 304. Increase in amount of assistance for automobile and adaptive equipment for certain disabled veterans.

Sec. 305. Increase in assistance amount for specially adapted housing.

Sec. 306. Revision of rules with respect to net worth limitation for eligibility for pensions for veterans who are

permanently and totally disabled from a non-service-connected disability.

Sec. 307. Technical amendments.

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

Except as otherwise expressly provided, whenever in this Act an amendment or

repeal is expressed in terms of an amendment to, or repeal of, a section or other

provision, the reference shall be considered to be made to a section or other provision of title 38, United States Code.

TITLE I—EDUCATIONAL ASSISTANCE

PROVISIONS

SEC. 101. INCREASE IN MAXIMUM ALLOWABLE ANNUAL SENIOR ROTC EDUCATIONAL ASSISTANCE FOR ELIGIBILITY FOR BENEFITS UNDER THE MONTGOMERY GI BILL.

(a) IN GENERAL.—Sections 3011(c)(3)(B) and 3012(d)(3)(B) are each amended by

striking ‘‘$2,000’’ and inserting ‘‘$3,400’’. (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall take effect

on the date of the enactment of this Act and shall apply with respect to educational

assistance allowances paid under chapter 30 of title 38, United States Code, for

months beginning after such date.

SEC. 102. EXPANSION OF WORK-STUDY OPPORTUNITIES.

(a) ASSISTING IN OUTREACH SERVICES.—The second sentence of section 3485(a)(1)

is amended in clause (A) by inserting before the comma the following: ‘‘or outreach

services to servicemembers and veterans furnished by employees of State approving

agencies’’. (b) WORKING IN MAJOR ACADEMIC DISCIPLINE.—Such sentence is further amended— (1) by striking ‘‘or (E)’’ and inserting ‘‘(E)’’; and

(2) by inserting before the period the following: ‘‘, or (F) in the case of an individual who has declared a major academic discipline, activities within the department of that academic discipline approved by the Secretary that complement and reinforce the program of education pursued by that individual’’. (c) WORKING IN STATE VETERANS HOME.—Such sentence is amended in clause (C)

by inserting after the comma ‘‘including the provision of such care to veterans in

a State home for which payment is made under section 1741 of this title,’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to agreements entered into under section 3485 of title 38, United States Code,

on or after the date of the enactment of this Act.

SEC. 103. INCLUSION OF CERTAIN PRIVATE TECHNOLOGY ENTITIES IN THE DEFINITION OF

EDUCATIONAL INSTITUTION.

(a) IN GENERAL.—Sections 3452(c) and 3501(a)(6) are each amended by adding at

the end the following new sentence: ‘‘Such term also includes any private entity

(that meets such requirements as the Secretary may establish) that offers, either

directly or under an agreement with another entity (that meets such requirements),

a course or courses to fulfill requirements for the attainment of a license or certificate generally recognized as necessary to obtain, maintain, or advance in employment in a profession or vocation in a technological occupation (as determined by the

Secretary).’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to enrollments in courses occurring on or after the date of the enactment of this Act.

SEC. 104. EXPANSION OF SPECIAL RESTORATIVE TRAINING BENEFIT TO CERTAIN DISABLED

SPOUSES OR SURVIVING SPOUSES.

(a) IN GENERAL.—Section 3540 is amended by striking ‘‘section 3501(a)(1)(A) of

this title’’ and inserting ‘‘subparagraphs (A), (B), and (D) of section 3501(a)(1) of this

title’’.

(b) CONFORMING AMENDMENTS.—(1) Section 3541(a) is amended in the matter preceding paragraph (1) by striking ‘‘of the parent or guardian’’.

(2) Section 3542(a) is amended—

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(A) by striking ‘‘the parent or guardian shall be entitled to receive on behalf

of such person’’ and inserting ‘‘the eligible person shall be entitled to receive’’;

and

(B) by striking ‘‘upon election by the parent or guardian of the eligible person’’

and inserting ‘‘upon election by the eligible person’’.

(3) Section 3543(a) is amended by striking ‘‘the parent or guardian for the training provided to an eligible person’’ and inserting ‘‘for the training provided to the

eligible person’’.

(4) Section 3543 is amended by adding at the end the following new subsection:

‘‘(c) In a case in which the Secretary determines requires a parent or guardian

to make a request under section 3541(a) of this title on behalf of an eligible person,

the parent or guardian shall be entitled—

‘‘(1) to receive on behalf of the eligible person the special training allowance

provided for under section 3542(a) of this title;

‘‘(2) to elect an increase in the basic monthly allowance provided for under

such section; and

‘‘(3) to agree with the Secretary on the fair and reasonable amounts which

may be charged under subsection (a).’’.

SEC. 105. DISTANCE EDUCATION.

(a) IN GENERAL.—Subsection (a)(4) of section 3680A is amended—

(1) by inserting ‘‘(A)’’ after ‘‘leading’’; and

(2) by inserting before the period the following: ‘‘, or (B) to a certificate that

reflects educational attainment offered by an institution of higher learning’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to enrollments in independent study courses beginning on or after the date of the enactment of this Act.

SEC. 106. TECHNICAL AMENDMENTS TO THE MONTGOMERY GI BILL.

(a) CLARIFICATION OF ELIGIBILITY REQUIREMENT FOR MGIB BENEFITS.—

(1) IN GENERAL.—Clause (i) of section 3011(a)(1)(A) is amended to read as follows:

‘‘(i) who (I) in the case of an individual whose obligated period of active duty is three years or more, serves at least three years of continuous active duty in the Armed Forces, or (II) in the case of an individual whose obligated period of active duty is less than three years,

serves at least two years of continuous active duty in the Armed

Forces; or’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall take effect as if included in the enactment of the Veterans Benefits and Health Care

Improvement Act of 2000 (Public Law 106–419).

(b) ENTITLEMENT CHARGE FOR OFF-DUTY TRAINING AND EDUCATION.—

(1) IN GENERAL.—Section 3014(b)(2) is amended—

(A) in subparagraph (A), by striking ‘‘(without regard to’’ and all that follows through ‘‘subsection’’; and

(B) by adding at the end the following new subparagraph:

‘‘(C) The number of months of entitlement charged under this chapter in the case

of an individual who has been paid a basic educational assistance allowance under

this subsection shall be equal to the number (including any fraction) determined by

dividing the total amount of such educational assistance allowance paid the individual by the full-time monthly institutional rate of educational assistance which

such individual would otherwise be paid under subsection (a)(1), (b)(1), (c)(1), or

(e)(1) of section 3015 of this title, as the case may be.’’.

(2) CONFORMING AMENDMENTS.—(A) Section 3015 is amended—

(i) in subsections (a)(1) and (b)(1), by inserting ‘‘subsection (g)’’ after ‘‘from

time to time under’’;

(ii) by striking the first subsection (g), as inserted by section 1602(b)(3)(C)

of the Floyd D. Spence National Defense Authorization Act for Fiscal Year

2001 (enacted by Public Law 106–398; 114 Stat. 1654A–359); and

(iii) by redesignating subsection (h) as subsection (g).

(B) Section 3032(b) is amended by inserting before the period at the end the

following: ‘‘, or (3) the amount of the charges of the educational institution elected by the individual under section 3014(b)(1) of this title’’.

(3) EFFECTIVE DATE.—The amendments made by this subsection shall take effect as if enacted on November 1, 2000.

(c) INCREMENTAL MGIB INCREASES FOR CONTRIBUTING ACTIVE DUTY MEMBERS.—

(1) IN GENERAL.—Section 3011(e), as added by section 105(a)(1) of the Veterans Benefits and Health Care Improvement Act of 2000 (Public Law 106–419;

114 Stat. 1828), is amended—

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(A) in paragraph (2), by inserting ‘‘, but not more frequently than monthly’’ before the period;

(B) in paragraph (3), by striking ‘‘$4’’ and inserting ‘‘$20’’; and

(C) in paragraph (4)—

(i) by striking ‘‘Secretary. The’’ and inserting ‘‘Secretary of the military department concerned. That’’; and

(ii) by striking ‘‘by the Secretary’’.

(2) CONFORMING AMENDMENTS.—(A) Section 3012(f), as added by section

105(a)(2) of such Act, is amended—

(i) in paragraph (2), by inserting ‘‘, but not more frequently than monthly’’ before the period;

(ii) in paragraph (3), by striking ‘‘$4’’ and inserting ‘‘$20’’; and

(iii) in paragraph (4)—

(I) by striking ‘‘Secretary. The’’ and inserting ‘‘Secretary of the military department concerned. That’’; and

(II) by striking ‘‘by the Secretary’’.

(B) Section 3015(g), as added by section 105(b)(3) of such Act, is amended—

(i) in the matter preceding paragraph (1), by inserting ‘‘effective as of the

first day of the enrollment period following receipt of such contribution by

the Secretary concerned,’’ after ‘‘by section 3011(e) or 3012(f) of this title,’’;

and

(ii) in paragraph (1)—

(I) by striking ‘‘$1’’ and inserting ‘‘$5’’;

(II) by striking ‘‘$4’’ and inserting ‘‘$20’’; and

(III) by inserting ‘‘of this title’’ after ‘‘section 3011(e) or 3012(f)’’.

(3) EFFECTIVE DATE.—The amendments made by this subsection shall take effect as if included in the enactment of section 105 of the Veterans Benefits and

Health Care Improvement Act of 2000 (Public Law 106–419; 114 Stat. 1828).

(d) CONFORMING AMENDMENT FOR DEATH BENEFIT.—

(1) IN GENERAL.—Paragraph (1) of section 3017(b) is amended to read as follows:

‘‘(1) the sum of (A) the total amount reduced from the individual’s basic pay

under section 3011(b), 3012(c), or 3018(c) of this title, and (B) the total amount

of any contributions made by the individual under section 3011(e) or 3012(f) of

this title, less’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall take effect on May 1, 2001.

(e) CLARIFICATION OF TIME PERIOD FOR ELECTION OF BEGINNING OF CHAPTER 35

ELIGIBILITY FOR DEPENDENTS.—

(1) IN GENERAL.—(A) Section 3512(a)(3)(B), as amended by section 112 of the

Veterans Benefits and Health Care Improvement Act of 2000 (Public Law 106–

419; 114 Stat. 1831), is amended to read as follows:

‘‘(B) the eligible person elects that beginning date by not later than the

end of the 60-day period beginning on the date on which the Secretary provides written notice to that person of that person’s opportunity to make

such election, such notice including a statement of the deadline for the election imposed under this subparagraph; and’’.

(B) Section 3512(a)(3)(C), as so amended by such section, is amended by striking ‘‘between the dates described in’’ and inserting ‘‘the date determined pursuant to’’.

(2) EFFECTIVE DATE.—The amendments made by paragraph (1) shall take effect as if enacted on November 1, 2000.

TITLE II—TRANSITION AND OUTREACH

PROVISIONS

SEC. 201. AUTHORITY TO ESTABLISH OVERSEAS VETERANS ASSISTANCE OFFICES TO EXPAND

TRANSITION ASSISTANCE.

Section 7723(a) is amended by inserting after the first sentence the following new

sentence: ‘‘The Secretary may maintain such offices on such military installations

located elsewhere as the Secretary, after consultation with the Secretary of Defense,

determines to be necessary to carry out such purposes.’’.

SEC. 202. TIMING OF PRESEPARATION COUNSELING.

(a) IN GENERAL.—(1) The first sentence of section 1142(a)(1) of title 10, United

States Code, is amended to read as follows: ‘‘Within the time periods specified in

paragraph (3), the Secretary concerned shall (except as provided in paragraph (4))

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provide for individual preseparation counseling of each member of the armed forces

whose discharge or release from active duty is anticipated as of a specific date.’’.

(2) Such section is further amended by adding at the end the following new paragraphs:

‘‘(3)(A) In the case of an anticipated retirement, preseparation counseling shall

commence as soon as possible during the 24-month period preceding the anticipated

retirement date. In the case of a separation other than a retirement, preseparation

counseling shall commence as soon as possible during the 12-month period preceding the anticipated date. Except as provided in subparagraph (B), in no event

shall preseparation counseling commence 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 before the anticipated retirement or separation date,

preseparation counseling shall begin as soon as possible within the remaining period

of service.

‘‘(4)(A) Subject to subparagraph (B), the Secretary concerned shall not provide

preseparation counseling to a member who is being discharged or released before

the completion of that member’s first 180 days of active duty.

‘‘(B) Subparagraph (A) shall not apply in the case of a member who is being retired or separated for disability.’’.

(b) CONFORMING AMENDMENT.—The second sentence of section 1144(a)(1) of title

10, United States Code, is amended by striking ‘‘during the 180-day period’’ and all

that follows and inserting ‘‘within the time periods provided under paragraph (3) of

section 1142(a) of this title, except that the Secretary concerned shall not provide

preseparation counseling to a member described in paragraph (4)(A) of such section.’’.

SEC. 203. IMPROVEMENT IN EDUCATION AND TRAINING OUTREACH SERVICES FOR SEPARATING SERVICEMEMBERS AND VETERANS.

(a) PROVIDING OUTREACH THROUGH STATE APPROVING AGENCIES.—Section 3672(d)

is amended by inserting ‘‘and State approving agencies’’ before ‘‘shall actively promote the development of programs of training on the job’’.

(b) ADDITIONAL DUTY.—Such section is further amended—

(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and

(2) by adding at the end the following new paragraph:

‘‘(2) In conjunction with outreach services furnished by the Secretary for education

and training benefits under chapter 77 of this title, each State approving agency

shall conduct outreach programs and provide outreach services to eligible persons

and veterans about education and training benefits available under applicable Federal and State law.’’.

SEC. 204. EXPANSION OF OUTREACH EFFORTS TO ELIGIBLE DEPENDENTS.

(a) AVAILABILITY OF OUTREACH SERVICES FOR CHILDREN, SPOUSES, SURVIVING

SPOUSES, AND DEPENDENT PARENTS.—Paragraph (2) of section 7721(b) is amended

to read as follows:

‘‘(2) the term ‘eligible dependent’ means a spouse, surviving spouse, child, or

dependent parent of a person who served in the active military, naval, or air

service.’’.

(b) IMPROVED OUTREACH PROGRAM.—(1) Subchapter II of chapter 77 is amended

by adding at the end the following new section:

‘‘§ 7727. Outreach for eligible dependents

‘‘(a) In carrying out this subchapter, the Secretary shall ensure that the needs of

eligible dependents are fully addressed.

‘‘(b) The Secretary shall ensure that the availability of outreach services and assistance for eligible dependents under this subchapter is made known through a variety of means, including the Internet, announcements in veterans publications, and

announcements to the media.’’.

(2) The table of sections at the beginning of such chapter is amended by inserting

after the item relating to section 7726 the following new item:

‘‘7727. Outreach for eligible dependents.’’.

SEC. 205. IMPROVEMENT OF VETERANS OUTREACH PROGRAMS.

Section 7722(c) is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and

(2) by adding at the end the following:

‘‘(2) Whenever a veteran or dependent first applies for any benefit under laws administered by the Secretary (including a request for burial or related benefits or an

application for life insurance proceeds), the Secretary shall provide to the veteran

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or dependent information concerning benefits and health care services under programs administered by the Secretary.’’.

TITLE III—MEMORIAL AFFAIRS, INSURANCE,

AND OTHER PROVISIONS

SEC. 301. INCREASE IN BURIAL BENEFITS.

(a) BURIAL AND FUNERAL EXPENSES.—(1) Section 2307 is amended by striking

‘‘$1,500’’ and inserting ‘‘$2,000 (as increased from time to time under section 5312

of this title)’’.

(2) Section 2302(a) is amended by striking ‘‘$300’’ and inserting ‘‘$500 (as increased from time to time under section 5312 of this title)’’.

(3) Section 2303(a)(1)(A) is amended by striking ‘‘$300’’ and inserting ‘‘$500 (as

increased from time to time under section 5312 of this title)’’.

(b) PLOT ALLOWANCE.—Section 2303(b) is amended by striking ‘‘$150’’ each place

it appears and inserting ‘‘$300 (as increased from time to time under section 5312

of this title)’’.

(c) INDEXING PAYMENT AMOUNTS.—Section 5312(a) is amended—

(1) by striking ‘‘and each rate of monthly allowance’’ and inserting ‘‘each rate

of monthly allowance’’; and

(2) by inserting ‘‘and each rate of allowance paid under sections 2302, 2303,

and 2307 of this title,’’ after ‘‘under section 1805 of this title,’’.

(d) EFFECTIVE DATE.—The amendments made by this section shall apply to deaths

occurring on or after the date of the enactment of this Act.

SEC. 302. FAMILY COVERAGE UNDER SERVICEMEMBERS’ GROUP LIFE INSURANCE.

(a) INSURABLE DEPENDENTS.—(1) Section 1965 is amended by adding at the end

the following new paragraph:

‘‘(10) The term ‘insurable dependent’, with respect to a member, means the

following:

‘‘(A) The member’s spouse.

‘‘(B) The member’s child, as defined in the first sentence of section

101(4)(A) of this title.’’.

(2) Section 101(4)(A) is amended in the matter preceding clause (i) by inserting

‘‘(other than with respect to a child who is an insurable dependent under section

1965(10)(B) of such chapter)’’ after ‘‘except for purposes of chapter 19 of this title’’.

(b) INSURANCE COVERAGE.—(1) Subsection (a) of section 1967 is amended to read

as follows:

‘‘(a)(1) Subject to an election under paragraph (2), any policy of insurance purchased by the Secretary under section 1966 of this title shall automatically insure

the following persons against death:

‘‘(A) In the case of any member of a uniformed service on active duty (other

than active duty for training)—

‘‘(i) the member; and

‘‘(ii) each insurable dependent of the member.

‘‘(B) Any member of a uniformed service on active duty for training or inactive

duty training scheduled in advance by competent authority.

‘‘(C) In the case of any member of the Ready Reserve of a uniformed service

who meets the qualifications set forth in section 1965(5)(B) of this title—

‘‘(i) the member; and

‘‘(ii) each insurable dependent of the member.

‘‘(2)(A) A member may elect in writing not to be insured under this subchapter.

‘‘(B) A member may elect in writing not to insure the member’s spouse under this

subchapter.

‘‘(3)(A) Subject to subparagraphs (B) and (C), the amount for which a person is

insured under this subchapter is as follows:

‘‘(i) In the case of a member, $250,000.

‘‘(ii) In the case of a member’s spouse, $100,000.

‘‘(iii) In the case of a member’s child, $10,000.

‘‘(B) A member may elect in writing to be insured or to insure the member’s

spouse in an amount less than the amount provided for under subparagraph (A).

The member may not elect to insure the member’s child in an amount less than

$10,000. The amount of insurance so elected shall, in the case of a member or

spouse, be evenly divisible by $10,000.

‘‘(C) In no case may the amount of insurance coverage under this subsection of

a member’s spouse exceed the amount of insurance coverage of the member.

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‘‘(4)(A) An insurable dependent of a member is not insured under this chapter unless the member is insured under this subchapter. ‘‘(B) An insurable dependent who is a child may not be insured at any time by

the insurance coverage under this chapter of more than one member. If an insurable

dependent who is a child is otherwise eligible to be insured by the coverage of more

than one member under this chapter, the child shall be insured by the coverage of

the member whose eligibility for insurance under this subchapter occurred first, except that if that member does not have legal custody of the child, the child shall

be insured by the coverage of the member who has legal custody of the child. ‘‘(5) The insurance shall be effective with respect to a member and the insurable

dependents of the member on the latest of the following dates: ‘‘(A) The first day of active duty or active duty for training.

‘‘(B) The beginning of a period of inactive duty training scheduled in advance

by competent authority. ‘‘(C) The first day a member of the Ready Reserve meets the qualifications

set forth in section 1965(5)(B) of this title. ‘‘(D) The date certified by the Secretary to the Secretary concerned as the

date Servicemembers’ Group Life Insurance under this subchapter for the class

or group concerned takes effect. ‘‘(E) In the case of an insurable dependent who is a spouse, the date of marriage of the spouse to the member.

‘‘(F) In the case of an insurable dependent who is a child, the date of birth

of such child or, if the child is not the natural child of the member, the date

on which the child acquires status as an insurable dependent of the member.’’.

(2) Subsection (c) of such section is amended by striking the first sentence and

inserting the following: ‘‘If a person eligible for insurance under this subchapter is

not so insured, or is insured for less than the maximum amount provided for the

person under subparagraph (A) of subsection (a)(3), by reason of an election made

by a member under subparagraph (B) of that subsection, the person may thereafter

be insured under this subchapter in the maximum amount or any lesser amount

elected as provided in such subparagraph (B) upon written application by the member, proof of good health of each person (other than a child) to be so insured, and

compliance with such other terms and conditions as may be prescribed by the Secretary.’’.

(c) TERMINATION OF COVERAGE.—(1) Subsection (a) of section 1968 is amended—

(A) in the matter preceding paragraph (1), by inserting ‘‘and any insurance

thereunder on any insurable dependent of such a member,’’ after ‘‘any insurance

thereunder on any member of the uniformed services,’’; and

(B) by adding at the end the following new paragraph:

‘‘(5) With respect to an insurable dependent of the member, insurance under

this subchapter shall cease—

‘‘(A) 120 days after the date of an election made in writing by the member

to terminate the coverage; or

‘‘(B) on the earliest of—

‘‘(i) 120 days after the date of the member’s death;

‘‘(ii) 120 days after the date of termination of the insurance on the

member’s life under this subchapter; or

‘‘(iii) 120 days after the termination of the dependent’s status as an

insurable dependent of the member.’’.

(2) Such subsection is further amended—

(A) in the matter preceding paragraph (1), by striking ‘‘, and such insurance

shall cease—’’ and inserting ‘‘and such insurance shall cease as follows:’’;

(B) by striking ‘‘with’’ after the paragraph designation in each of paragraphs

(1), (2), (3), and (4) and inserting ‘‘With’’;

(C) in paragraph (1)—

(i) in the matter preceding subparagraph (A), by striking ‘‘thirty-one

days—’’ and inserting ‘‘31 days, insurance under this subchapter shall

cease—’’;

(ii) in subparagraph (A)—

(I) by striking ‘‘one hundred and twenty days’’ after ‘‘(A)’’ and inserting ‘‘120 days’’; and

(II) by striking ‘‘prior to the expiration of one hundred and twenty

days’’ and inserting ‘‘before the end of 120 days’’; and

(iii) by striking the semicolon at the end of subparagraph (B) and inserting a period;

(D) in paragraph (2)—

(i) by striking ‘‘thirty-one days’’ and inserting ‘‘31 days,’’;

(ii) by striking ‘‘one hundred and twenty days’’ both places it appears and

inserting ‘‘120 days’’; and

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(iii) by striking the semicolon at the end and inserting a period;

(E) in paragraph (3)— (i) by inserting a comma after ‘‘competent authority’’ (ii) by striking ‘‘one hundred and twenty days’’ both places it appears and

inserting ‘‘120 days’’; and

(iii) by striking ‘‘; and’’ at the end and inserting a period; and

(F) in paragraph (4), by inserting ‘‘insurance under this subchapter shall cease’’ before ‘‘120 days after ’’ the first place it appears.

(3) Subsection (b)(1)(A) of such section is amended by inserting ‘‘(to insure against

death of the member only)’’ after ‘‘converted to Veterans’ Group Life Insurance’’. (d) PREMIUMS.—Section 1969 is amended by adding at the end the following new

subsections: ‘‘(g)(1)(A) During any period in which a spouse of a member is insured under this

subchapter and the member is on active duty, there shall be deducted each month

from the member’s basic or other pay until separation or release from active duty

an amount determined by the Secretary as the premium allocable to the pay period

for providing that insurance coverage. No premium may be charged for providing

insurance coverage for a child. ‘‘(B) During any month in which a member is assigned to the Ready Reserve of

a uniformed service under conditions which meet the qualifications set forth in section 1965(5)(B) of this title and the spouse of the member is insured under a policy

of insurance purchased by the Secretary under section 1966 of this title, there shall

be contributed from the appropriation made for active duty pay of the uniformed

service concerned an amount determined by the Secretary (which shall be the same

for all such members) as the share of the cost attributable to insuring the spouse

of such member under this policy, less any costs traceable to the extra hazards of

such duty in the uniformed services. Any amounts so contributed on behalf of any

individual shall be collected by the Secretary concerned from such individual (by deduction from pay or otherwise) and shall be credited to the appropriation from

which such contribution was made.

‘‘(2)(A) The Secretary shall determine the premium amounts to be charged for life

insurance coverage for spouses of members under this subchapter.

‘‘(B) The premium amounts shall be determined on the basis of sound actuarial

principles and shall include an amount necessary to cover the administrative costs

to the insurer or insurers providing such insurance.

‘‘(C) Each premium rate for the first policy year shall be continued for subsequent

policy years, except that the rate may be adjusted for any such subsequent policy

year on the basis of the experience under the policy, as determined by the Secretary

in advance of that policy year.

‘‘(h) Any overpayment of a premium for insurance coverage for an insurable dependent of a member that is terminated under section 1968(a)(5) of this title shall

be refunded to the member.’’.

(e) PAYMENTS OF INSURANCE PROCEEDS.—Section 1970 is amended by adding at

the end the following new subsection:

‘‘(i) Any amount of insurance in force on an insurable dependent of a member

under this subchapter on the date of the dependent’s death shall be paid, upon the

establishment of a valid claim therefor, to the member or, in the event of the member’s death before payment to the member can be made, then to the person or persons entitled to receive payment of the proceeds of insurance on the member’s life

under this subchapter.’’.

(f) CONVERSION OF SGLI TO PRIVATE LIFE INSURANCE.—Section 1968(b) is amended by adding at the end the following new paragraph:

‘‘(3)(A) In the case of a policy purchased under this subchapter for an insurable

dependent who is a spouse, upon election of the spouse, the policy may be converted

to an individual policy of insurance under the same conditions as described in section 1977(e) of this title (with respect to conversion of a Veterans’ Group Life Insurance policy to such an individual policy) upon written application for conversion

made to the participating company selected by the spouse and payment of the required premiums. Conversion of such policy to Veterans’ Group Life Insurance is

prohibited.

‘‘(B) In the case of a policy purchased under this subchapter for an insurable dependent who is a child, such policy may not be converted under this subsection.’’.

(g) EFFECTIVE DATE AND INITIAL IMPLEMENTATION.—(1) The amendments made by

this section shall take effect on the first day of the first month that begins more

than 120 days after the date of the enactment of this Act.

(2) Each Secretary concerned, acting in consultation with the Secretary of Veterans Affairs, shall take such action as is necessary to ensure that during the period

between the date of the enactment of this Act and the effective date determined

under paragraph (1) each eligible member—

9

(A) is furnished an explanation of the insurance benefits available for dependents under the amendments made by this section; and

(B) is afforded an opportunity before such effective date to make elections

that are authorized under those amendments to be made with respect to dependents.

(3) For purposes of paragraph (2):

(A) The term ‘‘Secretary concerned’’ has the meaning given that term in section 101 of title 38, United States Code.

(B) The term ‘‘eligible member’’ means a member of the uniformed services

described in subparagraph (A) or (C) of section 1967(a)(1) of title 38, United

States Code, as amended by subsection (b)(1).

SEC. 303. RETROACTIVE APPLICABILITY OF INCREASE IN MAXIMUM SGLI BENEFIT FOR MEMBERS DYING IN PERFORMANCE OF DUTY ON OR AFTER OCTOBER 1, 2000.

(a) APPLICABILITY OF INCREASE IN BENEFIT.—Notwithstanding subsection (c) of

section 312 of the Veterans Benefits and Health Care Improvement Act of 2000

(Public Law 106–419; 114 Stat. 1854), the amendments made by subsection (a) of

that section shall take effect on October 1, 2000, with respect to any member of the

Armed Forces who died in the performance of duty (as determined by the Secretary

concerned) during the period beginning on October 1, 2000, and ending at the close

of March 31, 2001, and who on the date of death was insured under the

Servicemember’s Group Life Insurance program under subchapter III of chapter 19

of title 38, United States Code, for the maximum coverage available under that program.

(b) DEFINITION.—For purposes of this section, the term ‘‘Secretary concerned’’ has

the meaning given that term in section 101(25) of title 38, United States Code.

SEC. 304. INCREASE IN AMOUNT OF ASSISTANCE FOR AUTOMOBILE AND ADAPTIVE EQUIPMENT FOR CERTAIN DISABLED VETERANS.

Section 3902(a) is amended by striking ‘‘$8,000’’ and inserting ‘‘$9,000’’.

SEC. 305. INCREASE IN ASSISTANCE AMOUNT FOR SPECIALLY ADAPTED HOUSING.

Section 2102 is amended—

(1) in the matter preceding paragraph (1) of subsection (a), by striking

‘‘$43,000’’ and inserting ‘‘$48,000’’; and

(2) in subsection (b)(2), by striking ‘‘$8,250’’ and inserting ‘‘$9,250’’.

SEC. 306. REVISION OF RULES WITH RESPECT TO NET WORTH LIMITATION FOR ELIGIBILITY

FOR PENSIONS FOR VETERANS WHO ARE PERMANENTLY AND TOTALLY DISABLED

FROM A NON-SERVICE-CONNECTED DISABILITY.

(a) IN GENERAL.—Section 1522(a) is amended by adding at the end the following

new sentence: ‘‘In determining the corpus of the estates of the veteran and the veteran’s spouse, if any, the value of the real property of the veteran and the veteran’s

spouse and children shall be excluded if such property is used for farming, ranching,

or similar agricultural purposes.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to payment of pensions for months beginning on or after the date of the enactment of this

Act.

SEC. 307. TECHNICAL AMENDMENTS.

(a) TITLE 38, UNITED STATES CODE.—Title 38, United States Code, is amended as

follows:

(1) Effective as of November 1, 2000, section 107 is amended—

(A) in the second sentence of subsection (a), by inserting ‘‘or (d)’’ after

‘‘subsection (c)’’;

(B) by redesignating the second subsection (c) (added by section 332(a)(2)

of the Veterans Benefits and Health Care Improvement Act of 2000 (Public

Law 106–419)) as subsection (d); and

(C) in subsection (d), as so redesignated, by striking ‘‘In’’ in paragraph (1)

and inserting ‘‘With respect to benefits under chapter 23 of this title, in’’.

(2) Section 3512 is amended—

(A) in subsection (a)(5), by striking ‘‘clause (4) of this subsection’’ and inserting ‘‘paragraph (4)’’; and

(B) in subsection (b)(2), by striking ‘‘willfull’’ and inserting ‘‘willful’’.

(3) Section 4303(13) is amended by striking the second period at the end.

(b) PUBLIC LAW 106–419.—Effective as of November 1, 2000, and as if included

therein as originally enacted, the Veterans Benefits and Health Care Improvement

Act of 2000 (Public Law 106–419) is amended as follows:

(1) Section 111(f)(3) (114 Stat. 1831) is amended by striking ‘‘3654’’ and inserting ‘‘3564’’.

10

(2) Section 323(a)(1) (114 Stat. 1855) is amended by inserting a comma in the

second quoted matter therein after ‘‘duty’’. (3) Section 401(e)(1) (114 Stat. 1860) is amended by striking ‘‘this’’ both places

it appears in quoted matter and inserting ‘‘This’’. (4) Section 402(b) (114 Stat. 1861) is amended by striking the close quotation

marks and period at the end of the table in paragraph (2) of the matter inserted

by the amendment made that section.

(c) PUBLIC LAW 102–590.—Section 3(a)(1) of the Homeless Veterans Comprehensive Service Programs Act of 1992 (38 U.S.C. 7721 note) is amended by striking ‘‘, during,’’.

INTRODUCTION

On February 28, 2001, the Chairman and Ranking Member, the

Honorable Chris Smith and the Honorable Lane Evans, along with

the Chairman and Ranking Member of the Subcommittee on Benefits, the Honorable J.D. Hayworth and the Honorable Silvestre

Reyes, introduced H.R. 801.

On March 15, 2001, the Subcommittee on Benefits held a hearing

and considered H.R. 801 and other matters.

On March 21, 2001, the Full Committee met and ordered H.R.

801 reported favorably, as amended, to the House.

SUMMARY OF THE REPORTED BILL

H.R. 801, as amended, would:

TITLE I–EDUCATIONAL ASSISTANCE PROVISIONS

1. Increase from $2,000 to $3,400 the maximum allowable annual

Senior Reserve Officers’ Training Corps (SROTC) award for

benefits under the Montgomery GI Bill.

2. Expand VA’s work-study program for veterans to include

working in their major academic discipline, working in state

veterans homes, and helping State Approving Agencies with

outreach efforts.

3. Provide for inclusion of certain private technology entities in

the definition of educational institution.

4. Allow the disabled spouse or surviving spouse of a severely

disabled service-connected veteran to receive special restorative training.

5. Permit veterans to use VA educational assistance benefits for

a certificate program offered by an accredited institution of

higher learning by way of independent study.

TITLE II–TRANSITION AND OUTREACH PROVISIONS

1. Provide VA the authority to maintain transition assistance offices overseas.

2. Extend the time that preseparation counseling is available to

servicemembers leaving the service to as early as 12 months

before discharge, and 24 months prior to discharge for military

retirees.

3. Improve education and training outreach services by requiring

each State Approving Agency to conduct outreach programs

and provide services to eligible veterans and dependents about

state and federal education and training benefits.

4. For purposes of VA’s outreach program, defines an eligible dependent as the spouse, surviving spouse, child or dependent

11

parent of a servicemember/veteran. Require VA to ensure that

eligible dependents are made aware of VA’s services through

media and veterans publications.

5. Require VA to provide to the veteran or eligible dependent information concerning VA benefits and services whenever that

person first applies for any benefit.

TITLE III–MEMORIAL AFFAIRS, INSURANCE, AND OTHER PROVISIONS

1. Increase the burial and funeral expense for a service-connected

veteran from $1,500 to $2,000, increase the burial and funeral

expense for a nonservice-connected veteran from $300 to $500,

and increase the burial plot allowance from $150 to $300.

2. Expand the Servicemembers’ Group Life Insurance (SGLI) program to include spouses and children. Spousal coverage will

not exceed $100,000; child coverage would be $10,000. Upon

termination of SGLI, the spouse’s policy could be converted to

a private life insurance policy.

3. Make the effective date of an increase from $200,000 to

$250,000 in the maximum SGLI benefit provided in Public

Law 106–419 retroactive to October 1, 2000, for a

servicemember who died in the performance of duty and had

the maximum amount of insurance in force.

4. Increase the automobile and adaptive equipment grant for severely disabled veterans from $8,000 to $9,000.

5. Increase the grant for specially adapted housing for severely

disabled veterans from $43,000 to $48,000, and increase the

amount for less severely disabled veterans from $8,250 to

$9,250.

6. Revise the rule with respect to the net worth limitation for

VA’s means-tested pension program by excluding the value of

property used for farming, ranching or similar agricultural

purposes.

BACKGROUND AND DISCUSSION

TITLE I–EDUCATIONAL ASSISTANCE PROGRAMS

Increase in maximum allowable annual Senior ROTC educational

assistance for eligibility for benefits under the Montgomery GI Bill

(MGIB).—Section 101 would increase from $2,000 to $3,400 per

year the amount a student under the Senior Reserve Officers’

Training Corps (SROTC) can receive in SROTC educational assistance and still retain eligibility for the Montgomery GI Bill.

In the early 1990’s, the service branches began to offer partial

scholarships to an increasing number of SROTC cadets. Although

these Federal payments were just a small portion of their educational expenses, officers who were commissioned following receipt

of partial scholarships continued to be barred from participation in

the MGIB. To correct this inequity, Congress in 1996 provided in

section 3011(c)(3) of title 38, United States Code, that officers who

had received no more than $2,000 in each year of their SROTC program could participate in MGIB. The rising cost of tuition has outpaced the general rise in the cost of living since 1996. Although

partial scholarships continue to pay only a small portion of educational expenses, the military services have increased the amount

12

cational expenses, the military services have increased the amount

of a partial scholarship. The $2,000 limit would be increased to

$3,400 to reflect this increase.

Expansion of VA work-study opportunities.—Section 102 would

expand work-study opportunities for veteran-students and eligible

dependents to include: outreach services to servicemembers and

veterans furnished by State Approving Agencies; work-study activities for the veteran-student and/or dependent (who has declared an

academic major) within the department of an academic discipline

that complement and reinforce the program of education pursued

by the student; and provision of care to veterans in a State home

for which payment is made under section 1741 of title 38, United

States Code.

Under section 3485 of title 38, United States Code, VA workstudy students may prepare or process necessary VA paperwork at

schools or VA facilities, provide hospital and domiciliary care at VA

facilities or work at DOD facilities, in certain circumstances. Since

veteran-students are limited by current law to processing paperwork only at educational institutions, the educational institutions

can use very few veteran-students. Veteran-students who have

been able to obtain one of the limited VA work-study opportunities

on campus have suggested to VA their interest in using VA workstudy to work in the academic department of their major field of

study to gain additional ‘‘hands-on’’ learning opportunities.

Further, as noted in the January 1999 report of the bipartisan

Congressional Commission on Servicemembers and Veterans Transition Assistance (Transition Commission), with State Approving

Agencies (SAAs) doing more outreach to separating

servicemembers in recent years with respect to veterans’ education

and training benefits, SAAs have expressed an interest in using

veteran-students to assist them. Many of these students are recent

separates from military service.

The March 15, 2001 testimony of VA Secretary Anthony J.

Principi before the Subcommittee on Benefits illustrates the advantages of this provision:

Mr. Chairman, we believe it is in keeping with the purposes of the VA work-study program that veteran workstudy students be provided this additional educational assistance allowance for performing services that do not just

narrowly relate to VA activities, but that broadly help

other veterans. This proposal would expand the opportunities now available and would not deviate from the purpose

of the benefit program. Consequently, we would welcome a

statutory amendment permitting VA work-study students

to perform in the aforementioned arenas.

Lastly, under current law VA work-study students are permitted

to help provide domiciliary care in VA facilities, but not State veterans homes. Section 1741 of title 38, United States Code, allows

VA to pay State homes for the daily care of veterans, if those veterans would be eligible for care in a VA facility.

Inclusion of certain private technology entities in the definition of

educational institution.—Section 103 would amend the definition of

educational institution for VA educational assistance purposes to

13

include any private entity that offers, either directly or under

agreement with another entity, a course or courses to fulfill requirements for the attainment of a license or certificate generally

recognized as necessary to obtain, maintain, or advance in employment in a profession or vocation in a technological occupation.

This provision would permit educational assistance to be paid to

veterans enrolled in courses offered by businesses. Current law defines a program of education as a curriculum or combination of unit

courses or subjects pursued at an educational institution which is

generally accepted as necessary for the attainment of a pre-determined and identified educational, professional, or vocational objective. A program of education may be offered at either an institution

of higher learning or a non-college degree school. Current law does

not permit VA to award benefits for courses offered by a commercial business entity.

The Committee notes the oral testimony of Secretary Principi at

its March 15th hearing: ‘‘Education in America has changed. Veterans should be afforded a full opportunity to obtain training offered by the institutions defining the cutting edge of the technological revolution that will define America in the 21st century.’’

Certified Network Administrator and Certified Network Engineer

courses by Novell Incorporated, Microsoft Corporation, and other

companies are offered either through educational institutions or to

employees by businesses. Although the courses are identical, only

those veterans pursuing the courses at an educational institution

may receive educational assistance under current law.

The Committee bill addresses this problem by modifying the definition of a program of education. The Committee also notes the

concerns that were raised by Representative Corrine Brown of Florida regarding the need to include survivors and dependents in the

benefits associated with this modification to current law. Therefore,

the Committee bill also modifies the definition of an educational institution for survivors and dependents.

Expansion of special restorative training benefit to certain disabled spouses or surviving spouses.—Section 104 would allow the

disabled spouse or surviving spouse of a severely disabled serviceconnected veteran to receive special restorative training.

Distance education.—Courses offered as an independent study

program by an accredited institution of higher learning leading to

a certificate that reflects educational attainment would be made

approvable for veterans’ training by section 105. State Approving

Agencies (SAAs) determine whether such institutions and their

courses meet veterans’ training approval criteria.

Courses leading to an associate degree and baccalaureate degree

(known as standard college degrees) offered by independent study

are approved for veterans’ training under current law. There must

be interaction between the student and the faculty by mail, telephone, video conferencing, computer technology, (including electronic mail), or in person. The Committee notes the Transition

Committee report:

. . . Substantial changes have occurred in both the methods for providing education and in the institutions offering

courses and training. Post-secondary education is now

available on the Internet, through broadcast media and

14

videotape on satellite campuses, and through noncampus

programs.

With the emergence of distance learning instruction via the

Internet, interactive and computerized programs, and the

globalization that has come with the information age, the Committee believes that courses leading to a certificate that reflects

educational attainment via independent study should be approvable for veterans’ training as well.

TITLE II—TRANSITION AND OUTREACH PROVISIONS

Authority to establish overseas veterans assistance offices to expand transition assistance.—Section 201 would give the Secretary

the discretionary authority to maintain veterans assistance offices

on Armed Forces installations located overseas, after consultation

with the Secretary of Defense.

The Committee notes the finding of the Transition Commission

in regard to this provision:

The law (section 7723 of title 38, United States Code) does

not require VA to maintain veterans’ assistance offices on

military installations outside of the United States. . . .

Through a funding arrangement with DOD, VA currently

assigns representatives overseas on a rotational basis in a

number of locations with large military populations.

Servicemembers stationed overseas who spoke with Commission members viewed the absence of a permanent VA

presence as a significant deficiency in their support and

assistance network. They noted that this deficiency made

the difficult challenge of transitioning back to civilian life

while overseas even more difficult.

VA agrees, as stated in the March 15 testimony of Secretary

Principi: ‘‘Expanding overseas transition assistance services with

permanent VA offices located on military installations would allow

us to extend the Benefits Delivery at Discharge program to service

members being separated overseas.’’

Timing of preseparation counseling.—Under preseparation counseling, the Departments of Defense, Veterans Affairs, and Labor

assist separating servicemembers with benefits and services to facilitate a successful transition to civilian life. Section 202 would

change the timing of preseparation counseling from not less than

90 days prior to separation to as soon as possible during the 24-

month period preceding an anticipated retirement and as soon as

possible during the 12-month period preceding other separations,

but in no event later than 90 days before the date of discharge or

release. The lone exception to this policy would be in the event that

a retirement or other separation is unanticipated until there are 90

or fewer days remaining in the member’s service. In that case,

preseparation counseling shall begin as soon as possible within the

remaining period of service. The Secretary concerned would not be

permitted to provide preseparation counseling to a servicemember

who is being discharged or released before the completion of that

servicemember’s first 180 days of active duty.

The Committee notes this provision is consistent with a Transition Commission recommendation. The March 15 written statement

15

of Ms. Gail H. McGinn, Acting Assistant Secretary of Defense

(Force Management Policy) supports it as well. She stated:

The additional time provides commanders with the flexibility needed as more and more servicemembers are deployed during the last six months of their active duty status. The additional time will also alleviate the stress and

pressure to compress transitioning, relocation and out

processing into the last few months of active duty.

Improvement in education and training outreach services for separating servicemembers and veterans.—Section 203 would require

that State Approving Agencies (SAAs), in addition to the Secretary,

actively promote the development of VA programs of training on

the job (including programs of apprenticeship). This section also

would require SAAs, in conjunction with outreach services furnished by the Secretary for education and training benefits under

chapter 77 of title 38, United States Code, to conduct outreach programs and provide outreach services to eligible persons and veterans about education and training benefits available under applicable Federal and State law.

The Committee notes the following observations by the Transition Commission report with respect to greater SAA emphasis on

on-job training and apprenticeship:

Only 2 percent of MGIB recipients use their benefits for

on-the-job training. SAAs operate at the state level and

under current law are authorized to work with employers

to both establish on-the-job/apprenticeship programs and

approve them. The Commission believes that SAAs should

spend increased time in this area. Doing so would enhance

SAAs opportunities to assist in the placement of veterans,

especially disabled veterans, with employers. The Commission notes that SAAs are beginning to increase their efforts to encourage use of distance learning, apprenticeships, and on-the-job training benefits. Several states have

developed models for outreach, including personal contact

with potential employers and briefings for veterans, transition counselors, and servicemembers.

The Committee also notes Transition Commission observations

regarding greater SAA emphasis on benefits outreach: ‘‘. . . unmet

needs include education benefits outreach to separating

veterans.... The mission of SAAs [should] include responsibility

for providing education benefit outreach to separating veterans.’’

Expansion of outreach efforts to eligible dependents.—Section 204

would define an eligible dependent as a spouse, surviving spouse,

child or dependent parent of a person who served in the active military, naval, or air service for purposes of VA’s outreach services.

This section also requires the Secretary of Veterans Affairs to ensure that the availability of outreach services and assistance for eligible dependents is made known through a variety of means, including the Internet, announcements in veterans’ publications, and

announcements to the media.

As pointed out in the testimony of the Honorable Bill Pascrell,

Jr. of New Jersey, ‘‘the most recent survey conducted by VA indicated that less than half of veterans contacted were aware of cerVerDate 26-MAR-2001 00:01 Mar 27, 2001 Jkt 089006 PO 00000 Frm 00015 Fmt 6659 Sfmt 6601 E:\HR\OC\HR027.XXX pfrm04 PsN: HR027
16

tain benefits they were entitled to receive. Some of these benefits

included pension benefits for disabled, low-income veterans.’’ The March 15, 2001, testimony of Rose Lee, former national

chairman, Gold Star Wives of America, Inc., before the Subcommittee on Benefits illustrates the value added by the Committee’s provision:

We are very pleased to see that the Subcommittee has

seen fit to make the necessary changes to make it clear

that the Secretary for Veterans’ Affairs has a duty to ensure that surviving spouses are provided with the information concerning all of the benefits and health care services

administered by the Secretary. While it is not clear under

the current law that the widows of those servicemen who

gave their lives for their country were to be served by the

Secretary in his outreach programs, this legislation should

correct any such misunderstanding. Gold Star Wives has

had significant experience in undertaking such outreach

on its own and now is pleased that it could have a true

partner in ensuring that widows are informed of their

rightful benefits.

Improvement of veterans outreach programs.—Section 205 would

require VA to provide a veteran or eligible dependent with information concerning benefits and health care services under programs

administered by the Secretary whenever a veteran or dependent

first applies for any benefit.

In administering this provision, it is the Committee’s intent that

VA have the flexibility to use its discretion in the timing and manner of providing information to be sensitive to family’s needs. The

Committee notes that this section is derived from a bill, H.R. 336,

introduced by Representative Michael Doyle of Pennsylvania.

TITLE III–MEMORIAL AFFAIRS, INSURANCE, AND OTHER PROVISIONS

Increase in burial benefits.—Section 301(a) would increase the

burial and funeral expense allowance payable for service-connected

deaths from $1,500 to $2,000, and for nonservice-connected deaths

from $300 to $500. Section 301(b) would increase, from $150 to

$300, the plot allowance payable for a veteran buried in State or

private cemeteries. Pursuant to section 301(c), these amounts

would be indexed to increases in Social Security benefits under section 5312 of title 38, United States Code.

Family coverage under Servicemembers’ Group Life Insurance.— Section 302 would add a new section to title 38, United States

Code, to provide automatic Servicemembers’ Group Life Insurance

(SGLI) coverage to the spouse and children of insured, full-time, active-duty servicemembers, as well as covered members of the Ready

Reserve. This section would provide up to $100,000 of SGLI coverage for a spouse and $10,000 for each child. The servicemember

would be able to elect, in writing, not to insure a spouse; coverage

for a child would be automatic. SGLI coverage for family members

would end: (1) 120 days after the date of the written election of the

servicemember; (2) 120 days after the member’s death; (3) 120 days

after the date on which the servicemember’s SGLI is terminated;

or (4) 120 days after the date on which the insured’s status as the

child or spouse terminates. If a spouse’s coverage were terminated

17

by one of these events, the spouse would have the option to convert

SGLI coverage to commercial coverage.

The Committee notes testimony of the Paralyzed Veterans of

America (PVA) and the Veterans of Foreign Wars of the United

States (VFW), respectively, regarding this provision of the Committee bill. The PVA noted: ‘‘The extension of coverage under the

Servicemembers Group Life Insurance program to a dependent

spouse and children is an excellent indication that America cares

about its veterans and their families.’’ The VFW said: ‘‘We view

this measure as pro-family and anticipate that the Secretary of Defense will be able to negotiate premium rates that will be much

more favorable to the servicemember than would be available on

the open market.’’

Effective date for increase in Servicemembers’ Group Life Insurance benefit for certain servicemembers dying in performance of

duty. Section 303 would provide an effective date of October 1,

2000, for an increase in the maximum amount of SGLI from

$200,000 to $250,000 for those servicemembers that (1) died during

the performance of duty between October 1, 2000 and March 31,

2001, and (2) had previously elected the maximum amount of

SGLI. Public Law 106–419 increased the maximum amount of

SGLI to $250,000 effective April 1, 2001. As Representative Jo Ann

Davis of Virginia stated in her March 15 testimony before the

Committee:

America has recently witnessed an extraordinary number

of accidents and tragedies within our military community.

A V–22 Osprey, a Blackhawk helicopter, and a C–23 airplane all recently crashed. Only a few days ago, there was

the accidental bombing of our own servicemen in Kuwait.

The important thing to remember is all of these accidents

resulted in the untimely and tragic deaths of many of our

servicemen in the performance of their duty.

Representative Silvestre Reyes of Texas stressed the importance

of providing an effective date of October 1, 2000, in order to include

victims of the terrorist attack on the U.S.S. Cole. Secretary Principi

stated that the Administration would support an effective date of

October 1, 2000.

Increase in the amount of assistance for automobile and adaptive

equipment for certain disabled veterans.—Section 304 would increase the automobile and adaptive equipment grant for severely

disabled veterans from $8,000 to $9,000.

The testimony of the Disabled American Veterans is illustrative

of the views of witnesses on this issue: ‘‘The amount of automobile

allowance has not been adjusted regularly to keep pace with increases in the costs of automobiles. This neglect substantially eroded the value of the benefit due to inflation. At the current allowance, the benefit represents only about 32 percent of the year 2000

average cost of a new automobile, $24,730.’’

Increase in assistance amount for specially adapted housing.—

Section 305 would increase the grant for specially adapted housing

for severely disabled veterans from $43,000 to $48,000, and would

increase the amount for less severely disabled veterans from $8,250

to $9,250.

18

The written testimony of the Secretary Principi at the March 15

hearing speaks to the need for this increase:

The current grant amounts were set by Public Law 105–

178, an increase of such grants effective October 1, 1998.

Cost data obtained by VA in 1998 showed that increases

of up to $50,000 and $8,500, respectively, would have been

justified. In FY 2000, 99 percent of the veterans determined eligible for these grants used the maximum grant

amount and, in most cases, required additional funding to

complete their adaptations. Based on our initial research,

we believe that the proposed increase in these grants is

necessary and appropriate to keep pace with increased

costs.

Revision of rules with respect to net worth limitation for eligibility

for pensions for veterans who are permanently and totally disabled

from a non-service-connected disability.—Section 306 would revise

the rule with respect to net worth limitation for VA’s means-tested

pension program by excluding the value of property used for farming, ranching, or similar agricultural purposes.

Technical amendments.—Section 307 would make technical

amendments to section 107 of title 38, United States Code, to reconcile and clarify amendments made by Public Laws 106–377 and

106–419 that affect the rate of payment of burial benefits and compensation to certain Filipino veterans.

SECTION-BY-SECTION ANALYSIS

All references are to title 38, United States Code, unless otherwise noted.

Section 1 would provide that this Act may be cited as the ‘‘Veterans Opportunities Act of 2001’’.

Section 2 states that except as otherwise expressly provided, all

references are to title 38, United States Code.

Section 101(a) would amend sections 3011(c)(3)(B) and

3012(d)(3)(B) by increasing from $2,000 to $3,400 the maximum annual scholarship a participant in the Senior Reserve Officers’

Training Corps (SROTC) may receive and still be eligible for the

educational assistance allowance paid under chapter 30 (All-Volunteer Force Educational Assistance Program known as the ‘‘Montgomery GI Bill’’). This section applies primarily to SROTC students

receiving partial scholarships

Section 101(b) would require that that section 101 take effect on

the date of enactment of this Act, for the months beginning after

such date.

Section 102(a) reflects changes in VA work-study opportunities.

This section would amend section 3485(a)(1) clause (A). It would

add outreach services to servicemembers and veterans furnished by

employees of State Approving Agencies, as a type of service for

which an eligible veteran-student may receive a VA work-study

allowance.

Section 102(b) would amend section 3485(a)(1). It would add a

new clause (F) authorizing activities within the department of an

academic discipline of a veteran-student’s declared academic major

19

that complement or reinforce his program, as a type of duty for

which the veteran may receive a VA work-study allowance. Such

veterans must have declared a major or academic discipline to

participate.

Section 102(c) would amend section 3485(a)(1) clause (C) by adding the provision of domiciliary care and medical treatment for veterans in a State home for which payment is made under section

1741.

Section 102(d) would create an effective date on or after the date

of enactment of this Act, with amendments that would be made by

this subsection applying with respect to agreements entered into

under section 3485.

Section 103(a) would amend sections 3452(c) and 3501(a)(6) to

expand the definition of educational institutions to include any private entity that offers, either directly or under an agreement with

another entity, a course or courses to fulfill requirement for the attainment of a license or certificate generally recognized as necessary to obtain, maintain, or advance in employment in a profession or vocation in a technological occupation.

Section 103(b) would specify that the amendment made by this

subsection shall apply to enrollments in courses occurring on or

after the date of the enactment of this Act.

Section 104(a) would amend section 3540 to reflect an expansion

of special restorative training (SRT) benefits to certain disabled

spouses or surviving spouses. This section would expand the SRT

benefit provided under the chapter 35 Survivors and Dependents’ Educational Assistance program to include certain disabled spouses

or surviving spouses. Such individuals would be eligible to receive

SRT to overcome or lessen the effects of a physical or mental disability and enable them to undertake a program of education.

Section 104(b) would amend section 3541(a) substituting ‘eligible

person’ for ‘parent or guardian’ to receive special restorative

training.

Section 105(a) would amend section 3680A(a)(4) to allow eligible

veterans to receive educational benefits to pursue courses leading

to a certificate that reflects educational attainment by an accredited institution of higher learning.

Section 105(b) would require that the amendments made by this

subsection shall apply to enrollments in independent study courses

beginning on or after the date of enactment of this Act.

Section 106(a) would amend section 3011(a)(1)(A), clarifying the

period of active duty required to be eligible to participate in the

Montgomery GI Bill program.

Section 106(b) would amend section 3014(b)(2) to reduce the

overall months of entitlement to education benefits for a veteran

who is pursuing off-duty training by the total benefits paid divided

by the applicable full-time rate of assistance.

Section 106(c) would amend section 3011(e) to establish that payments made by those servicemembers who wish to buy into enhanced benefits under the Montgomery GI Bill program shall be

made on a monthly basis and in $20 increments.

Section 106(d) would amend section 3017(b) to include as payment to a death benefit beneficiary any amounts reduced from the

20

deceased individual’s basic military pay for purposes of the chapter

30 Montgomery GI Bill program.

Section 106(e) would amend section 3512(a)(3)(B), clarifying that

any eligible person may elect the starting date of their chapter 35

education and training benefits within 60 days of receiving written

notice from the Secretary of their opportunity to do so.

Section 201 would amend section 7723(a) to give the Secretary

the discretionary authority to establish veterans assistance offices

on Armed Forces installations outside of the United States as the

Secretary determines necessary. In so doing, the Secretary would

be required to consult with the Secretary of Defense.

Section 202(a) would amend section 1142(a)(1) of title 10, United

States Code. This section would require the service branch Secretary concerned to provide for individual preseparation counseling

of the servicemember as soon as possible during the 24-month period preceding an anticipated retirement. It would also require

such counseling as soon as possible during the 12-month period

preceding other separations, but except in the case of a member

who is being retired or separated for disability, in no event later

than 90 days before the date of discharge or release. In the event

that a retirement or 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. Except in the case of a member who is being retired

or separated for disability, a member who is being discharged or

released before the completion of that member’s first 180 days of

active duty shall not receive preseparation counseling.

Section 202(b) would amend section 1144 of title 10, United

States Code, to conform to amendments made in section 202(a).

Section 203(a) would amend section 3672(d) to require State Approving Agencies actively to conduct outreach programs to promote

the development of programs of training on the job.

Section 203(b) would further amend section 3672(d) by adding at

the end a new paragraph requiring that in conjunction with outreach services furnished by the Secretary, each State Approving

Agency shall conduct outreach programs and provide outreach services to eligible persons and veterans about education and training

benefits available under applicable Federal and State law.

Section 204(a) would amend section 7721(b)(2) to define the term

‘‘eligible dependent’’ as a spouse, surviving spouse, child, or dependent parent of a person who served in the active military, naval

or air service.

Section 204(b) would amend subchapter II of chapter 77 by adding at the end a new section 7727 titled ‘‘Outreach for eligible dependents’’. In carrying out this subchapter, the Secretary would be

required to ensure that the needs of eligible dependents are fully

addressed. Further, the Secretary would be required to ensure that

the availability or outreach services and assistance for eligible dependents under this subchapter is made known through a variety

of means, including the Internet, announcements in veterans publications, and announcements in the media.

Section 205 would amend section 7722(c) with respect to outreach programs. It would require that whenever a veteran dependVerDate 26-MAR-2001 00:01 Mar 27, 2001 Jkt 089006 PO 00000 Frm 00020 Fmt 6659 Sfmt 6601 E:\HR\OC\HR027.XXX pfrm04 PsN: HR027
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ent first applies for any benefit under laws administered by the

Secretary (including a request for burial or related benefits, or an

application for life insurance proceeds), the Secretary shall provide

to the veteran or dependent information concerning benefits and

health care services under programs administered by the

Secretary.

Section 301(a) would amend section 2307 by increasing from

$1,500 to $2,000 the burial and funeral expenses incurred in connection with the death of a veteran who dies as the result of service-connected disability or disabilities. This section would also

amend section 2302(a) by increasing from $300 to $500 the burial

and funeral expenses incurred in connection with nonservice-connected deaths.

Section 301(b) would amend section 2303(b) by increasing the

plot allowance from $150 to $300 payable for veterans buried in

State or private cemeteries.

Section 301(c) would amend section 5312(a) such that the

amounts payable under sections 2302, 2303, and 2307, would be indexed to increases in Social Security Act benefits.

Section 301(d) would require that amendments made by this section shall apply to deaths occurring after the date of enactment of

this Act.

Section 302(a) would amend section 1965 to expand the

Servicemembers’ Group Life Insurance program to include eligibility to a servicemember’s spouse and child as defined in sentence

one of section 101(4)(A).

Section 302(b)(1)(A) would amend section 1966 to include each

insurable dependent of any member of a uniformed service on active duty (other than active duty for training) or any member of the

Ready Reserve of a uniformed service who meets the qualifications

set forth in section 1965(5)(B).

Section 302(b)(2)(A) restates a current provision of law allowing

a servicemember to elect not to enroll in Servicemembers’ Group

Life Insurance.

Section 302(b)(2)(B) would allow a servicemember to elect not to

insure the member’s spouse.

Section 302(b)(3)(A) would provide the amounts of coverage

under Servicemembers’ Group Life Insurance to be: (i) in the case

of a member, up to $250,000; (ii) in the case of a member’s spouse,

up to $100,000; (iii) in the case of a member’s child, $10,000.

Section 302(b)(3)(B) would provide the member the option of insuring self or the member’s spouse at less than the maximum

amount. The member cannot elect a lesser amount for the child.

Section 302(b)(3)(C) would provide that in no case may the

amount of the insurance coverage for the spouse exceed the amount

of the insurance coverage of the member.

Section 302(b)(4)(A) would prohibit insuring a dependent unless

the member is insured under this chapter.

Section 302(b)(4)(B) would prohibit a child from being insured

under this chapter by more than one member. If the child is otherwise eligible to be insured by more than one member, coverage will

be provided under the policy of the member whose eligibility for inVerDate 26-MAR-2001 00:01 Mar 27, 2001 Jkt 089006 PO 00000 Frm 00021 Fmt 6659 Sfmt 6601 E:\HR\OC\HR027.XXX pfrm04 PsN: HR027
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surance occurred first, unless that member does not have legal custody of the child.

Section 302(b)(5) would set forth the effective dates of coverage

for a member and the insurable dependents.

Section 302(c)(1) would amend section 1968 to provide dates of

termination of coverage in the case of a member’s death, the termination of the insurance on the member’s life, and the termination

of the dependent’s status as an insurable dependent.

Section 302(d) would amend section 1969 to provide the manner

in which the premiums will be paid, and provides the Secretary the

authority to determine the premium amounts to be charged for insurance coverage for spouses of members.

Section 302(e) would amend section 1970 to provide that any

amount of insurance in force on an insurable dependent shall be

paid to the member. In the event of the member’s death before payment is made, payment will be made to the person(s) entitled to

receive payment on the member’s life.

Section 302(f)(3)(A) would amend section 1968(b) to provide that

a policy of a member’s spouse may be converted to an individual

policy under the same conditions as described in section 1977(e)

upon written application for conversion. An insurable dependent

may not convert such policy to Veterans’ Group Life Insurance.

Section 302(f)(3)(B) would prohibit the conversion of an insurable

dependent that is a child.

Section 302(g) would provide an effective date as the first day of

the first month that begins more than 120 days after the date of

the enactment of this Act.

Section 303(a) increases the Servicemembers’ Group Life Insurance benefit by $50,000 in the case of a member of the Armed Services who (as determined by the Secretary concerned) died in the

performance of duty during the period beginning October 1, 2000,

and ending on March 31, 2001, and who, on the date of death, was

insured under the Servicemembers’ Group Life Insurance program

for the maximum amount available at the time.

Section 303(b) would provide that the definition of the term ‘Secretary concerned’ in 303(a) has the same meaning given as in section 101(25).

Section 304 would amend section 3902(a) by increasing the

amount of assistance for automobile and adaptive equipment for

certain disabled veterans from $8,000 to $9,000.

Section 305 would amend section 2102 by increasing the Specially Adapted Housing Grant for veterans with severe service-connected disabilities from $43,000 to $48,000 and the Special Home

Adaptation Grant for veterans less severely disabled from $8,250

to $9,250.

Section 306(a) would amend 1522(a) to exclude the value of family farms, ranches and similar agricultural property in determining

the net worth of veterans’ estates for purposes of the nonserviceconnected pension program.

Section 306(b) would provide an effective date for section 306(a)

for the payment of pensions for months beginning on or after date

of enactment.

23

Section 307(a) makes a technical correction in the numbering of

section 107 and clarifies that the provision as corrected applies to

benefits under chapter 23.

Section 307(b) makes technical corrections in sections of Public

Law 106–419 retroactive to the date of its enactment.

Section 307(c) makes a technical correction to Public Law 102–

590.

PERFORMANCE GOALS AND OBJECTIVES

The reported bill authorizes benefits increases and program expansions to improve programs of educational assistance, expand

programs of transition assistance and outreach, increase burial

benefits, and provide family coverage under Servicemembers’

Group Life Insurance. All programs affected by the reported bill

are currently authorized. Their performance goals and objectives

are established in the VA’s annual performance plans and are subject to the Committee’s oversight.

STATEMENT OF ADMINISTRATION’S VIEWS

STATEMENT OF ANTHONY J. PRINCIPI, SECRETARY, DEPARTMENT OF

VETERANS AFFAIRS, BEFORE THE HOUSE COMMITTEE ON VETERANS’ AFFAIRS, SUBCOMMITTEE ON BENEFITS, MARCH 15, 2001

Mr. Chairman and Members of the Subcommittee:

Thank you for the opportunity to testify today on H.R. 801, the ‘‘Veterans’ Opportunities Act of 2001’’. We also appreciate the opportunity to comment on the Department of Veterans Affairs’ (VA) implementation of section 601 of Public Law 105–

368, which established the Pilot Program for VA Guaranteed Loans for Multifamily

Transitional Housing for Homeless Veterans.

H.R. 801

First, Mr. Chairman, I would like to provide VA’s views on H.R. 801. This is an

omnibus bill consisting of three titles that would make changes affecting veterans’

education benefits, outreach, and memorial affairs. Many of the changes, though

modest in reach, appear significant and beneficial in purpose.

We estimate that H.R. 801 would result in additional benefits cost that, if not

fully offset in accordance with the pay-as-you-go (PAYGO) provisions of the Omnibus Budget Reconciliation Act of 1990, would trigger a sequester. Subject to meeting

PAYGO requirements, however, VA supports most provisions of this worthwhile

measure, as discussed below.

TITLE I–EDUCATIONAL ASSISTANCE PROVISIONS

Section 101 would increase, from $2,000 to $3,400, the maximum allowable annual scholarship a participant in the Senior Reserve Officers’ Training Corps

(SROTC) program may receive and still be eligible for benefits under the Montgomery GI Bill (MGIB). Before the current $2,000 ceiling was enacted, officers who

had received a commission upon completion of ROTC training were barred from participating in the Montgomery GI Bill (MGIB). The purpose of the bar was to avoid

having the Federal government pay for an ROTC cadet’s undergraduate degree and

then pay for additional education under the MGIB, sometimes based on the same

active duty service. However, it became recognized that an increasing number of

ROTC students were receiving only partial scholarships, and it seemed unreasonable to apply the ‘‘double dip’’ provision to them. Hence, the statute was amended

to allow ROTC students who entered active duty after September 30, 1996, to participate in the MGIB, provided they received less than $2,000 each school year from

their ROTC scholarship.

We agree the current limit is too low. The average scholarship now is reported to

be $3,400 annually. Therefore, amending the law to raise the amount the ROTC

cadet can receive each year to that level is a reasonable accommodation.

VA estimates there would be no costs associated with the enactment of this section of H.R. 801.

24

Section 102 of the bill would increase VA work-study program opportunities by

expanding the types of services that may be authorized, to include services for State

approving agencies; services related to an individual’s academic discipline, performed for the department of the educational institution having jurisdiction for that

discipline; and services for State veterans’ homes that receive funds from VA. These

amendments would be effective on the date of enactment.

Under current law, VA work-study students are limited to performing outreach,

preparing or processing necessary VA paperwork at schools or VA facilities, and assisting in VA hospitals and domiciliaries or working at DOD facilities (in certain circumstances). While this limitation on authorized services may have been appropriate when enacted, it now appears to be an impediment both to program participation and effective provision of needed services to other veterans.

For example, we hear from veterans and school officials alike, that, with the everincreasing costs of education, some veterans have a real need for greater access to

resources that can supplement their MGIB benefits. Work-study students have complained about the limited opportunities available to perform the specific services allowed by law. Small schools can only offer a limited number of positions. Many

schools are far from a VA facility, thus shutting out would-be participants.

Mr. Chairman, we believe it is in keeping with the purposes of the VA work-study

program that veteran work-study students be provided this additional educational

assistance allowance for performing services that do not just narrowly relate to VA

activities, but that broadly help other veterans. This proposal would expand the opportunities now available and would not deviate from the purpose of the benefit program. Consequently, we would welcome a statutory amendment permitting VA

work-study students to perform in the aforementioned arenas.

Our preliminary cost estimate indicates that section 102 would result in benefit

costs of less than $1.9 million in FY 2002, with a 5-year benefit cost of about $9.6

million for FYs 2002–2006.

Section 103 of H. R. 801 proposes to amend the definition of ‘‘educational institution’’ to include any entity that provides, directly or under agreement, training required for a license or certificate in a vocation or profession in a technological field.

It would become effective the date of enactment.

The law defines a ‘‘program of education’’ as a curriculum or combination of unit

courses or subjects pursued at an educational institution which is generally accepted

as necessary for the attainment of a predetermined and identified educational, professional, or vocational objective. A program of education may be offered at either

an institution of higher learning or a non-college degree school. Presently, the law

does not permit VA to award benefits for courses offered by commercial enterprises

whose primary purposes are other than providing educational instruction. Certified

Network Administrator (CNA) and Certified Network Engineer (CNE) courses offered by Novell, Microsoft, and other companies, for example, are offered either

through educational institutions or by designated business centers. Although the

courses are identical, regardless of where offered, only those veterans pursuing the

courses at an educational institution may receive educational assistance.

This bill would allow VA to award benefits to those veterans taking these courses

at a business site. This would permit approval of courses offered by businesses only

when the courses are needed to fulfill requirements for the attainment of a license

or certificate generally recognized as necessary to obtain, maintain, or advance in

employment in a profession or vocation in a technological occupation. We believe

providing educational benefits for pursuit of these courses is fully consonant with

MGIB purposes, and, given the bill’s conditions on approving the courses, adequate

safeguards would exist against potential abuse. Consequently, we would support

this provision of the bill.

Our preliminary cost estimate indicates that section 103 would result in benefit

costs of about $3.4 million in FY 2002, with a 5-year benefit cost of about $17.6 million for FYs 2002–2006.

Section 104 would expand the special restorative training (SRT) benefit provided

under the chapter 35 Survivors’ and Dependents’ Educational Assistance program

to include certain disabled spouses or surviving spouses. Presently, eligible children

entitled to chapter 35 assistance may receive SRT to overcome or lessen the effects

of a physical or mental disability and enable them to undertake a program of education. This same benefit should be extended to the eligible spouse or surviving

spouse when there is a reasonable possibility that the handicapping effect of his or

her disability can be overcome or lessened through an SRT course. The purpose of

such training should be to prepare the person for subsequent education or training.

Further, there must be an indication that the person is having difficulty selecting

a program because of the disability.

We support this provision of the bill.

25

Our preliminary cost estimate indicates that section 104 would result in benefit costs of less than $11,000 in FY 2002, with a 5-year benefit cost of almost $54,000

for FYs 2002–2006.

Section 105 would permit eligible veterans to receive VA education benefits, effective on the date of enactment, while pursuing noncollege-degree courses that are offered through independent study by institutions of higher learning.

Currently, an eligible veteran may receive educational assistance allowance for

pursuit of an accredited independent study program (distance learning), provided

that the program leads to a standard college degree. There must be interaction between the student and the faculty by mail, telephone, video conferencing, computer

technology (including electronic mail), or personally.

This bill would allow the approval of distance education programs leading to a

certificate offered through independent study by institutions of higher learning. This

would be similar to the requirements for approval of independent study courses that

lead to a degree, except this provision doesn’t specify that the institution of higher

learning be accredited . A veteran’s educational opportunities currently are limited

by the inability to pursue certificate programs offered by independent study. We

agree that this should be changed. Nevertheless, as a safeguard to help assure the

merit of such training, approval of courses offered by independent study and leading

to a certificate should be limited to those offered by an accredited institution of

higher learning. We would support this section with such modification.

Our preliminary cost estimate indicates that section 105 would result in benefit

costs of about $1.3 million in FY 2002, with a 5-year benefit cost of almost $7 million for FYs 2002–2006.

Section 106 of H.R. 801 would add several technical amendments.

(a) The first amendment would rework an ambiguity in the law concerning

the period of active duty an individual must serve to become entitled to MGIB

benefits consistent with the tiered benefit structure in effect before the enactment of Pub. L. 106–419. Until the enactment of that law, individuals who

served at least 3 continuous years of an initial obligated period of 3 or more

years established eligibility for MGIB at the highest rate. Those who served an

initial obligated period of 2 years received a lesser rate. Pub. L. 106–419 sought

to extend eligibility to people whose qualifying period of active duty service was

other than the initial obligated period, without affecting requirements as to the

length of such service. In so doing, however, it inadvertently amended the statute to read, in effect, that a person who agrees to serve an obligated period of

more than 3 years, under section 3011(a)(1)(A) of title 38, U.S.C., must serve

that entire obligated period, not merely 3 years thereof. This amendment makes

it clear that the individual need complete only 3 continuous years of active duty

to establish full MGIB entitlement. This amendment also clarifies that a person

who agrees to serve at least 2, but less than 3, years of active duty may become

entitled to the MGIB when that person serves for at least 2 continuous years.

This provision would be effective retroactive to November 1, 2000. Since this

merely corrects a technical error in Pub. L. 106–419, we support this provision.

(b) The second correction would change the way in which MGIB entitlement

would be charged for service members who use such entitlement to ‘‘top up’’

their military tuition assistance. Pub. L. 106–398 provided this new opportunity

to use the MGIB benefit. Operationally, however, it provided that service members who used the ‘‘top up’’ assistance would retain 36 months of MGIB entitlement, but the monthly rate for that entitlement would be reduced by subtracting the total amount of ‘‘top up’’ money paid from the total the individual

was otherwise eligible to receive, and dividing the result by 36. The technical

amendment would more accurately measure the use of MGIB benefits for this

purpose, as contemplated in Pub. L. 106–398, by having the monthly rate remain constant while the individual’s available months of MGIB entitlement

would be reduced by dividing the total amount received in ‘‘top up’’ money by

the monthly rate payable.

In other words, similar to the manner in which entitlement is charged for flight

training, for each $650 paid to a service member with a service obligation of

3 years or more, entitlement would be reduced by one month. This would greatly simplify operations and more accurately and understandably assess use of

MGIB benefits for ‘‘top up’’ purposes. Therefore, we strongly support this

amendment.

(c) The third amendment would clarify the timing and amount of additional

monies a service member can contribute to augment his or her monthly rate of

MGIB benefits, and provide that the contributions would be collected by the

Secretary of the appropriate military department. The law, as amended by Pub.

L. 106–419, currently provides that a service member can contribute up to $600

26

to increase the monthly MGIB rate. That contribution can be made at any time,

in multiples of $4. Thus, extended to the extreme, the individual could contribute $4 several times each day. Moreover, current law could be read to require VA to increase the monthly rate effective when each $4 contribution is

received. This is nearly impossible for VA to administer. The H.R. 801 amendment would provide that the contributions could be no more frequent than once

per month and must be in multiples of $20. Further, the increased monthly rate

would go into effect on the first day of the enrollment period following receipt

of the contribution. These changes are reasonable and would make the benefit

augmentation provision feasible to administer. Consequently, we strongly favor

this technical amendment.

(d) The fourth amendment would provide that the amount of contributions

made to augment an individual’s monthly MGIB benefit would be included in

determining the amount of the MGIB death benefit payable to an individual’s

survivors, in the same manner as would the $1200 pay reduction. Since this

would be in keeping with the purpose of the death benefit, we support this

amendment. However, we note that the $1200 pay reductions included in 38

U.S.C. 3018A, 3018B, and 3018C have never been included in the death benefit,

while Pub. L. 106–419 made such provision for pay reductions under 38 U.S.C.

3018C(e). Accordingly, we suggest it would be appropriate at this time to include all such pay reductions in the death benefit.

(e) Pub. L. 106–419 provided that some children eligible for educational assistance under the DEA program could elect the beginning date of their period

of eligibility. This provision was enacted to overcome a situation where the child

might lose much of the eligibility period while awaiting VA’s decision on whether the parent’s service-connected disability is permanent and total or the parent’s death was service-connected. However, by requiring that the child make

the election between ages 18 and 26, the law prohibits an election where it is

clearly needed.

For example, assume a veteran dies when the child is age 23. VA doesn’t decide that the death is service-connected until after the child’s 26th birthday.

This child currently cannot make an election. H.R. 801 would overcome this by

providing that the election could be made no later than the end of a 60-day period beginning on the day VA notifies the child of the right to make an election.

This overcomes a clear inequity in the law and, consequently, has our full

support.

VA estimates there would be no costs associated with the enactment of this section of H.R. 801.

TITLE II–TRANSITION AND OUTREACH PROVISIONS

Section 201 contains three provisions that would affect VA’s Transition Assistance

Program responsibility. The first of these would require VA to provide aid and assistance, as described in section 7722(d) of title 38, United States Code, to service

members as part of their transition assistance programs, under section 1144 of title

10, United States Code. This amendment, in effect, would mandate in title 38 what

VA now is doing by interagency agreement to implement the Transition Assistance

Program (TAP) established under title 10.

Under section 1144, the Departments of Labor (DOL), Defense (DOD), and Veterans Affairs have entered into a Memorandum of Understanding (MOU) outlining

joint, as well as individual agency responsibilities. Under this MOU, VA is responsible for providing a point of contact and coordinators; highly qualified benefits

counselors, instruction aides and course materials for each participant at locations

where the program is conducted; a VA training curriculum and support to the National Veteran Training Institute and DOL TAP staff; as well as guidance on the

role of all veterans’ service organizations. VA is also responsible for monitoring its

TAP and Disabled Transition Assistance Program (DTAP) delivery to maintain a

high-quality program. Program responsibility is assigned to the Demand Management Staff, Compensation and Pension Service. It should be noted that the last

MOU was signed in December 1994, and that the Agencies’ program coordinators

are working together in developing an updated MOU. However, no major changes

are anticipated in VA responsibilities.

During FY 2000, VBA military services coordinators conducted over 5,200 briefings through the Transition Assistance Programs, Retirement Services Program,

and other separation activities. Over 214,000 service members and spouses attended

these programs. Almost 89,000 personal interviews were conducted with active duty

personnel during that same period.

VA, thus, is fully committed to its TAP responsibilities. We believe this provision

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cerned that the provision, as drafted, creates an independent mandate for VA that

could limit our flexibility in providing TAP services in conjunction with our other

partners, DOL and DOD. We would be pleased to work with the Committee staff

to clarify the intent of this provision.

The second provision of section 201 requires VA to establish offices on military

installations outside of the United States as VA determines necessary. Currently,

VA provides transition assistance services to overseas active duty personnel through

VBA’s Overseas Military Services Program (0SMP). This program operates under a

separate Memorandum of Agreement between the Departments of Defense and Veterans Affairs. Under the OSMP, VA representatives are placed at key transition

sites in Europe and the Far East. These are temporary tours of duty logistically supported by the DOD which include office space, lodging, per diem, and travel costs.

During 9 months of coverage provided in FY 2000, overseas military services coordinators conducted 414 briefings, attended by almost 11,000 active duty personnel and

spouses. In addition, overseas military services coordinators conducted over 4,400

personal interviews with service members.

Expanding overseas transition assistance services with permanent VA Offices located on military installations would allow us to extend the Benefits Delivery at

Discharge program to service members being separated overseas. Through the Benefits Delivery at Discharge program, VA assists service members in filing claims with

the ultimate goal of rating cases and awarding benefits within 30 days of the member’s discharge from service. Benefits Delivery at Discharge programs are currently

operational at 114 military installations in the United States. During the first quarter of FY 2001, VA conducted over 8,000 pre-discharge examinations and finalized

nearly 5,000 claims through the Benefits Delivery at Discharge program.

Although we have no objection to being given express statutory authority to maintain offices on Armed Forces installations overseas, we find that, as with the previous provision, the mandatory language of this provision does not allow VA sufficient discretion in our use of resources. Again, we would be pleased to work with

the staff to draft appropriate language to effect the objective here.

The third provision of section 201 would clarify VA’s authority, under section 7724

of title 38, to outstation VA personnel on military installations to provide counseling

and outreach services to veterans and other eligible persons. We have read section

7724 broadly as already giving VA that authority, and further note that section 701

of Public Law 102–83 also gives VA this authority for purposes of providing information and assistance concerning veterans’ benefits to service members approaching

discharge or release from active military, naval, or air service. Moreover, since the

implementation of the pilot Transition Assistance Program (TAP) in l990 (PL 101–

237) and the permanent TAP established under PL 101–510, VBA military services

coordinators have been located at many military bases throughout the country to

provide transition assistance. Thus, this provision would not seem necessary. Nevertheless, we have no objection to the addition of this explicit authority in title 38.

VA estimates there would be no costs associated with the enactment of this section of H.R. 801.

Section 202 provides for pre-separation counseling by Department of Defense personnel of each member of the armed forces whose discharge or release from active

duty is anticipated. Since this is a matter within their purview, VA defers to the

DOD on this provision.

Section 203 of H.R. 801 would require each State approving agency (SAA) to conduct outreach programs and provide outreach services to veterans and eligible persons about education and training benefits available to them under federal or state

law. Both VA and the SAA’s believe such information is important in helping service

members and veterans decide how to best use their benefits. Consequently, many

SAA’s are already doing this as an ancillary duty. We support this provision since

it would require the remaining SAA’s to begin outreach efforts. We recognize it is

possible that SAA’s staffed by only one or two persons may have difficulty taking

on this added function. Consequently, if this provision were enacted, we would monitor these SAA’s to assure it would have no adverse impact on their ability to perform their approval and oversight duties.

VA estimates there would be no costs associated with the enactment of this section of H.R. 801.

Section 204 would expand VA’s responsibilities in providing outreach to potential

beneficiaries who are eligible dependents of veterans. Specifically, this provision

would broaden the definition of eligible dependents to include all spouses, surviving

spouses, children, and dependent parents of persons having active service. The provision would also add a new section to title 38 for the stated purpose of ensuring

that the needs of eligible dependents are fully addressed. The new provision would

require the Secretary to ensure that the availability of outreach services and assistance for eligible dependents is made known through a variety of means, including

28

the internet, announcements in veterans’ publications, and announcements to the

media. We agree with the importance of providing outreach to the broadest spectrum of eligible dependents and already have undertaken efforts to reach spouses,

surviving spouses, children, and dependent parents of veterans.

In the past, VA has been given latitude in the design, direction, content, and

structure of outreach programs. Section 7727 provides specific direction as to the

methods to be used for outreach to eligible dependents, to include use of the internet, announcements in veterans’ publications, and announcements to the media. The

internet has greatly expanded our ability to reach and assist veterans and their dependents. Through VA websites, veterans and dependents can obtain extensive information about VA benefits, print benefit applications, request additional information, or get assistance with specific claim issues. Through the Veterans On-Line Application, veterans can now apply for some benefits on-line. VA also fully utilizes

the news media to make targeted groups aware of VA benefits and services. For example, in support of VA efforts to expand outreach to Vietnam veterans exposed to

Agent Orange, the North American Precis Syndicate (NAPS) Veterans Day Package

prepared by the Office of Public Affairs featured an article on Vietnam Veterans and

Agent Orange. Camera ready copies were sent to 10,000 newspapers and as a script

to several thousand radio and TV stations. Thus, although we favor the objective

of section 204, such legislation is not necessary to assure that we will engage in

suitable outreach efforts directed toward eligible dependents.

Section 205 would also expand VA’s outreach responsibilities by requiring that,

whenever a veteran or a dependent first applies for any VA benefit (including a request for burial or related benefits, or an application for life insurance proceeds),

the Secretary provide to the applicant information concerning VA benefits and

health care services.

VA agrees that outreach to veterans and their dependents is an important part

of its mission. We believe our current outreach efforts comply with the intent of the

proposed legislation, which is to ensure that veterans and dependents are aware of

and understand available benefits and services and are provided timely and appropriate assistance to aid and encourage them in applying for and obtaining such benefits and services.

We assume it is intended that a common-sense approach be taken to administering this provision. In particular, we note that it would require us to provide to

a veteran or dependent information concerning benefits and health care services

when that person first requests burial or burial-related benefits. This typically

would occur when a family member, usually with the help of a funeral director,

makes arrangements for the burial of a loved one at a national cemetery or orders

a headstone or marker for a loved one. We do not believe that this is the appropriate

time to provide a veteran or a dependent information concerning eligibility for other

benefits and services. This is a very sensitive period for grieving family members,

and we do not believe the process should be encumbered with requirements for provision of information that the family members may not desire at that time. Nonetheless, we support the objective of section 205 and would not oppose its enactment if

it were made clear the Department had the flexibility to use its discretion in the

timing and manner of providing information so as to be sensitive as to the needs

of the veteran’s family members.

We estimate that enactment of section 205 would result in an administrative cost

to the National Cemetery Administration of $250,000 annually. This estimate is

based on 325,000 initial contacts annually by veterans and their dependents seeking

burial benefits and includes the cost of postage and printing of informational brochures. Additional costs would be incurred by the Veterans Benefits Administration

and the Veterans Health Administration. We request that language be included in

this provision to authorize VA to use amounts appropriated for compensation and

pensions to carry it out.

TITLE III–MEMORIAL AFFAIRS, INSURANCE, AND OTHER PROVISIONS

Section 301(a) would increase the burial and funeral-expense allowances payable

for service-connected deaths from $1,500 to $2,000 and for nonservice-connected

deaths from $300 to $500. Section 301(b) would increase, from $150 to $300, the plot

allowance payable for veterans buried in State or private cemeteries. Pursuant to

section 301(c), these amounts would be indexed to increases in Social Security benefits under section 5312 of title 38. The initial increases in the various rates would

be applicable to deaths occurring on or after the date of enactment of this

legislation.

The adequacy of the current rates must be judged in the context of the overall

package of burial benefits available to veterans, and with reference to other competing needs for finite budget dollars. The Government has responded to veterans’

burial needs in recent years by establishing several new National Cemeteries and

29

by significantly enhancing the grant program under which State veterans cemeteries are established. The State Cemetery Grants Program now provides up to 100

percent of the costs of construction associated with the establishment, expansion, or

improvement of state veterans cemeteries. This partnership between VA and the

states helps to support the Department’s strategic goal of providing veterans with

reasonable access to burial in a veterans cemetery. Since the 1998 enactment of

Public Law 105–368, which in effect increased the permissible grant amount from

50 to 100 percent of construction costs, there has been an increased interest from

the states in the program, as reflected in the increased number of pre-applications

received.

Given the expanding availability of burial options within both National and State

veterans cemeteries, and the competing demands for scarce VA resources, we can

at this time support only that portion of Section 301 that would increase to $2,000

the burial and funeral-expense allowance for service-connected deaths. The last increase (from $1,000 to $1,500) occurred in 1988. The greatest obligation is owed to

the families of those who have paid the ultimate price for their service, and we believe such an increase is warranted in their case.

Our preliminary cost estimate indicates that section 301 would result in benefit costs of $35 million in FY 2002 and a total benefit cost of $201 million for FYs

2002–2006. We estimate that an increase in only the service-connected burial allow- ance, from $1,500 to $2,000, would result in benefit costs of $5.3 million in FY 2002

and a 5-year benefit cost of $31.7 million.

Section 302 would add a new section to title 38 to provide automatic

Servicemembers’ Group Life Insurance (SGLI) coverage to the spouses and certain

children of insured, full-time, active-duty servicemembers. Section 302(b)(1) would

provide $10,000 of SGLI coverage for children of eligible servicemembers. This section also would provide a maximum of $100,000 of SGLI coverage for the spouse

of an eligible servicemember unless the servicemember elects not to insure the

spouse or to purchase coverage in an amount less than $100,000 (in a multiple of

$10,000) not to exceed the amount of the servicemember’s SGLI coverage.

SGLI coverage for family members would end upon: (1) the written election of the

servicemember; (2) 120 days after the member’s death; (3) the date on which the

servicemember’s SGLI coverage is terminated; (4) the date of the dependent’s death;

or (5) 120 days after the date on which the insured’s status as the child or spouse

terminates. If a spouse’s coverage were terminated by one of these events, the

spouse would have the option to convert the SGLI coverage to commercial coverage.

The Secretary of Veterans Affairs would have the authority to set premiums for

spouses. No premiums would be charged for SGLI coverage for children. The military departments and the Departments of Transportation, Commerce, and Health

and Human Services, in consultation with VA, would be required to take action to

ensure that every servicemember on active duty during the period between enactment of this legislation and the effective date of the bill is furnished information

about family SGLI coverage and provided an opportunity to make an election.

VA defers to the Department of Defense regarding the need to offer family SGLI

coverage to insured, active-duty servicemembers. VA, however, has a few technical

concerns with section 302 as drafted that relate to VA’s administration of the SGLI

program. New section 1967A would use the term ‘‘spouse’’ and ‘‘dependent spouse’’

interchangeably, but there is no definition of the term ‘‘dependent’’ in the draft bill.

In addition, that section uses the terms ‘‘dependent’’ and ‘‘insurable dependent’’

interchangeably.

With regard to termination of a spouse’s SGLI, section 302(c)(1)(D) would provide

inconsistent time frames for terminating SGLI coverage. New section 1968(a)(5)(A)

and (B)(ii) would provide that coverage would terminate immediately upon the

member’s election or upon termination of the member’s SGLI coverage. However,

new section 1968(a)(5)(B)(i) and (iv) would provide that coverage would terminate

120 days after the member’s death or termination of status as an insurable dependent. In order to maintain consistency, VA recommends that section 302(c)(1)(D) be

amended to provide in section 1968(a)(5)(A) and (B)(ii) that coverage would terminate 120 days after an election by a member or termination of an insured’s SGLI

coverage. VA further recommends that section 302(f) be amended by adding a sentence to new section 1968(b)(3)(A) stating that the individual policy of insurance

would be effective the day after the spouse’s SGLI terminates.

Section 302(e) would amend 38 U.S.C., section 1970, by adding a new subsection

(h). However, section 1970 currently includes a subsection (h). VA therefore recommends that section 302(e) be amended by redesignating the new subsection it

would add to section 1970 as subsection (i).

Finally, section 1968(b), as amended by section 302(f), would provide that, upon

the election of a spouse, an SGLI policy ‘‘may be converted to an individual policy

of insurance as described in’’ 38 U.S.C., section 1977(e), which pertains to converVerDate 26-MAR-2001 00:01 Mar 27, 2001 Jkt 089006 PO 00000 Frm 00029 Fmt 6659 Sfmt 6621 E:\HR\OC\HR027.XXX pfrm04 PsN: HR027
30

sion of Veterans’ Group Life Insurance (VGLI) to an individual policy of insurance.

In order to clarify that a spouse’s individual policy would be issued under the same

conditions as a plan to which a VGLI insured can convert, VA recommends that new

section 1968(b)(3)(A) be amended to provide that the conversion policy would be

issued without medical examination.

There would be no costs to the Government associated with section 302.

Section 303 would increase, from $8,000 to $9,000, the amount of monetary assistance VA may provide to a certain disabled veterans to facilitate their purchase of

automobiles. This monetary allowance was last increased in 1998, from $5,500 to

the present level, by Public Law 105–178. In view of increases in the cost of motor

vehicles that have occurred since that time, we believe the proposed increase is reasonable, and we support it.

Our preliminary cost estimate indicates that section 303 would result in benefit

costs of $1 million in FY 2002 and a total benefit cost of $5 million for FYs 2002–

2006.

Section 304 of H.R. 801 would increase the grants authorized by section 2101 of

title 38, United States Code, to veterans with qualifying service-connected disabilities. These grants assist the eligible veterans make adaptations to their homes that

are necessary because of the nature of the veterans’ disabilities. The bill would raise

the Specially Adapted Housing Grant, authorized by section 2101(a), from $43,000

to $48,000, and the Special Housing Adaptation Grant, authorized by section

2101(b), from $8,250 to $9,250.

The current grant amounts were set by Public Law 105–178, effective October 1,

1998. Cost data obtained by VA in 1998 showed that increases of up to $50,000 and

$8500, respectively, would have been justified. In FY 2000, 99 percent of the veterans determined eligible for these grants used the maximum grant amount and,

in most cases, required additional funding to complete their adaptations. Based on

our initial research, we believe that the proposed increase in these grant amounts

is necessary and appropriate to keep pace with increased costs.

VA, therefore, strongly supports the adjustments contained in H.R. 801. VA estimates that section 304 of H.R. 801 would have an annual cost of approximately

$2.74 million and a 5-year cost of approximately $13.68 million.

Section 305 would revise standards for determining net worth for purposes of veterans’ entitlement to nonservice-connected disability pension. The applicable provision of law, section 1522(a) of title 38, would be amended to include a requirement

that, in determining the corpus of the estate of a veteran, the value of the veteran’s

and the veteran’s spouse’s real property would be excluded if the property were used

for farming, ranching, or similar agricultural purposes. Because this provision could

result in disparate treatment for similarly situated claimants, we do not support it.

The change apparently is intended to benefit farmers or ranchers who may have

significant real property holdings, but little available cash or other liquid assets and

for whom the real property, while having commercial value, serves as a home.

We do not believe, however, that such claimants should be treated differently

from other similarly circumstanced claimants who may own real property with commercial value that may be attached to or in close proximity to their places of residence (for example, a duplex home where one unit is used for rental purposes). In

such a case, the value of the rental property (one half the value of the home) would

be taken into consideration for purposes of determining the claimant’s net worth,

while at the same time the value of the agricultural property of another claimant

that may equal or exceed the value of the former’s duplex rental would be excluded.

We believe such a result would be inequitable. In addition, we believe the proposed

amendment would unduly add a significant level of complexity to determinations affecting claimants’ net worth that would not serve to benefit veterans as a whole.

Section 305 is subject to the PAYGO requirements of the OBRA, and, if enacted,

it would increase direct spending. Our preliminary cost estimate indicates that section 305 would result in benefit costs of $18,286 in FY 2002 and a total benefit cost

of $399,796 for FYs 2002–2006.

Section 306 would make needed technical amendments to section 107 of title 38,

to reconcile and clarify recent amendments made by Public Laws 106–377 and 106–

419 that affect the rate of payment of burial benefits and compensation to certain

Filipino veterans. These amendments are crucial to implementation of the provisions affected and should be enacted separately should passage of this bill be

delayed.

There are no costs associated with these technical amendments.

TRANSITIONAL HOUSING PILOT PROGRAM

Mr. Chairman, you requested a status report on VA’s implementation of the new

guaranteed loan program for multifamily transitional housing projects for homeless

31

veterans. This pilot loan program was established by Public Law 105–368, enacted

November 11, 1998. Under this new program, VA is authorized to guarantee up to

15 loans with a maximum aggregate principal balance of $100 million.

As you are aware, Mr. Chairman, the Office of Management and Budget recently

agreed to waive Executive Branch policy contained in OMB Circular A–129 and permit VA to provide a 100 percent guaranty on these loans. Having just resolved this

major issue, VA is able to resume its preparations for selecting the first projects to

be financed under this program. We are hopeful that this selection process will be

well under way by the last quarter of the current calendar year.

Due to the complex and unique nature of this new program, the statute mandated

that VA enter into contracts for consulting services with organizations experienced

with transitional housing projects. Although this program was established in 1998,

VA did not receive funding for these contracts or the other administrative expenses

until Fiscal Year 2000.

In January 2000, VA contracted with the consulting firm, Birch and Davis Associates, Inc. As part of their team, Birch and Davis included a subcontractor, Century

Housing Corporation Corp., of Culver City, California. Century Housing has experience in the developing and financing of transitional housing for homeless veterans,

including the Westside Residence Hall in Los Angeles, California, which we understand was the model on which this legislation was based.

The contractor made numerous recommendations regarding the structure and implementation of this pilot program. Among Century’s recommendations was that VA

provide a 100 percent guaranty. OMB, however, objected to that level of guaranty,

since Executive Branch policy disfavors any loan guaranty in excess of 80 percent.

A loan guaranty program normally involves a party seeking financing from a commercial lender. VA assumed this would be the case under the pilot program. OMB

advised us, however, that if the 100 percent guaranty were approved, the loans

would be made by the Federal Financing Bank, a Government corporation under the

general supervision of the Secretary of the Treasury.

Until the issues of the level of guaranty and who would fund the loans were resolved, VA could not proceed on developing the mechanics of this program. As we

have noted, Mr. Chairman, OMB recently approved the 100 percent guaranty.

During the interim, however, VA continued with the planning process. The Under

Secretary for Health approved the formation of two committees. These were:

• The Location Site Selection Committee (LSSC), which was tasked with identifying and recommending specific sites where VA would seek proposal for

projects to be funded by the pilot program; and

• The Loan Guarantee Selection Committee (LGSC) which will be reviewing proposed projects and recommending to the Secretary which projects should be approved for a loan.

This is a limited pilot program, and a maximum of 15 loans may be made. VA

does not believe it is feasible, at least initially, to fund more than two or three

projects. After the initial projects are well under way, VA plans to review the process and make necessary administrative alterations before proceeding with the next

round of projects.

We do not believe a Nationwide competition would be feasible. Therefore, we will

be seeking proposals for projects in only a limited number of Metropolitan Statistical Areas (MSAs) designated by the Secretary. Therefore, the LSSC began its work

during the summer of 2000, and developed criteria for determining the geographic

areas where projects will be located. The LSSC then reviewed available data, and

came up with preliminary recommendations for selection of the initial MSAs. The

committee’s recommendations are now under review in the Department.

VA is now working with the Federal Financing Bank (FFB) on developing a

Memorandum of Understanding between the Secretary and the FFB regarding the

funding and guaranteeing of loans under this program. VA is also reviewing the

contractor’s recommendations to determine what changes may be necessary, since

loans will be made by the FFB rather than commercial lenders.

VA’s next steps will be:

• Finalize the administrative guidelines that will govern the initial loans;

• Acquire private-sector services necessary for the implementation of this program. While no final decisions have been make, we anticipate contracting for

loan underwriting recommendations from a private lender experienced with financing multifamily housing projects for or low-income persons, and for a loan

servicing and project oversight services; and

• Issuing requests for proposals in the highest priority MSAs.

We hope to be able to issue the initial RFPs before the end of the current fiscal year.

32

We must caution the Committee that this will be a slow process. We know the

needs of homeless veterans are great and VA wishes to add the additional beds as

quickly as possible. There is, however, no model for this type of federal loan guaranty program, and, as we break new ground, we must be cautious. We must give

developers sufficient time to draft workable proposals, and take the time to review

all applications carefully. We must also be aware that constructing a new multifamily housing project would likely take two or more years.

We will, however, continue to move ahead on this important new program, and

hope to have homeless veterans taking advantage of the new facilities as soon as

reasonably possible.

Mr. Chairman, that concludes my testimony. I would be pleased to reply to any

questions you or Members of the Subcommittee may have.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

The following letter was received from the Congressional Budget

Office concerning the cost of the reported bill:

U.S. CONGRESS,

CONGRESSIONAL BUDGET OFFICE,

Washington, DC, March 22, 2001.

Hon. CHRISTOPHER H. SMITH

Chairman, Committee on Veterans’ Affairs,

House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 801, the Veterans’ Opportunities Act of 2001.

If you wish further details on this estimate, we will be pleased

to provide them. The CBO staff contact is Sarah T. Jennings, who

can be reached at 226–2840.

Sincerely,

DAN L. CRIPPEN,

Director.

Enclosure.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 801, Veterans’ Opportunities Act of 2001, as ordered reported

by the House Committee on Veterans’ Affairs on March 21, 2001

SUMMARY. H.R. 801 contains provisions that would affect a

range of veterans’ programs, including burial benefits, readjustment benefits, and pensions. The bill also would extend coverage

under Servicemembers’ Group Life Insurance (SGLI) and expand

outreach efforts by the Department of Veterans Affairs (VA). CBO

estimates that enacting this bill would increase direct spending by

$46 million in 2002, $290 million over the 2002–2006 period, and

about $700 million over the 2002–2011 period. Direct spending

would also increase in fiscal year 2001 should the bill be enacted

before the end of this fiscal year. In addition, implementing the bill

would increase spending subject to appropriation by less than

$500,000 a year.

Because the bill would affect direct spending, pay-as-you-go procedures would apply. H.R. 801 contains no intergovernmental or

private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). Any costs to states as a result of enactment of

this bill would be incurred voluntarily.

33

ESTIMATED COST TO THE FEDERAL GOVERNMENT. The

estimated budgetary impact of H.R. 801 is shown in the following

table. The costs of this legislation fall within budget function 700

(veterans benefits and services).

By Fiscal Year, Outlays in Millions of Dollars

2001 2002 2003 2004 2005 2006

DIRECT SPENDING

Veterans’ Burial Benefits

Spending Under Current Law .... 133 128 129 131 131 133

Proposed Changes ........................ 0 36 38 41 43 46

Spending Under H.R. 801 ........... 133 164 167 172 174 179

Veterans’ Readjustment Benefits

Spending Under Current Law .... 1,693 1,880 2,000 2,107 2,238 2,341

Proposed Changes

Training for Technological

Occupations ....................... 0 2 3 4 5 6

Distance Education .............. 0 1 2 2 3 3

Work–Study .......................... 0 1 2 2 3 3

MGIB Eligibility ................... 0 0 **** Adapted Housing Grants ..... 0 4 4 5 5 5

Automobile Grants ............... 0 1 1 2 2 2

Subtotal–Proposed

Changes ...................... 0 9 12 15 18 19

Spending Under H.R. 801 ........... 1,693 1,889 2,012 2,122 2,256 2,360

Veterans’ Pensions

Spending Under Current Law .... 2,836 3,142 3,155 3,182 3,545 3,233

Proposed Changes ........................ 0 1 2 3 3 4

Spending Under H.R. 801 ........... 2,836 3,143 3,157 3,185 3,548 3,237

Summary of Changes in Direct Spending

Estimated Outlays ....................... 0 46 52 59 64 69

NOTES: * = Less than $500,000.

Estimated changes in budget authority would equal estimated changes in

outlays.

BASIS OF ESTIMATE. The bill would raise direct spending in

several programs, including burial benefits, readjustment benefits,

and pensions.

BURIAL BENEFITS. Section 301 would increase three different burial benefits and index those payments after 2001 to the same costof-living adjustments payable to Social Security recipients. The allowance to help cover burial and funeral expenses for veterans

whose deaths are attributed to a service-connected disability would

increase from the current rate of $1,500 to $2,000. Based on information from the VA, CBO estimates that this provision would

apply to 9,600–9,800 burials per year and would cost $5 million in

2002, $33 million over the 2002–2006 period, and $79 million over

the 2002–2011 period.

This section also would increase burial benefits from $300 to

$500 for veterans who were receiving compensation or pension payments at the time of their deaths or who died in a VA facility or

34

other department-approved nursing home or hospital. The benefit

is also available in cases when the veteran’s body is held by a government entity and there is no next of kin or otherwise available

resources to cover burial expenses. CBO estimates that this provision would apply to approximately 80,000 burials per year and

would cost $18 million in 2002, $99 million over the 2002–2006 period, and $219 million over the 2002–2011 period.

Section 301 also would increase the burial plot allowance from

$150 to $300. This allowance can be paid to a state or local veterans’ cemetery or a public cemetery with a separate veterans’ section that buries a qualified veteran without charging for the cost

of a plot or interment. It can also be paid to the family of a qualified veteran who is buried in a private cemetery or in a general

section of a public cemetery. CBO estimates that this provision

would cost $13 million in 2002, $75 million over the 2002–2006 period, and $177 million over the 2002–2011 period.

READJUSTMENT BENEFITS. Title I contains several provisions that

would enhance veterans’ education benefits and expand eligibility

for certain readjustment benefits.

Training for technological occupations.—Section 103 would expand the types of education allowed under the Montgomery GI Bill

(MGIB) to include training required for certification in technological occupations. Based on information from the VA and local

technical training schools, CBO estimates this would increase the

trainee population by about 0.5 percent over several years at a 10-

year cost of $60 million.

Distance education.—Under current law, independent study programs are allowed under MGIB only if they lead to a standard college degree. Section 105 would allow independent study in certificate-granting programs. Based on information from the VA, CBO

estimates this provision would increase the trainee population by

0.2 percent over several years at a 10-year cost of $27 million.

Work-study.—Section 102 would expand the opportunities of veterans receiving education benefits to receive work-study stipends.

Currently, the jobs available under the work-study program are

limited to providing services required in connection with VA activities, or the administration of veterans’ education programs for the

military reserves, the National Guard or the Coast Guard. Under

this bill, eligible veterans would be paid work-study stipends for

work in the department of their major academic discipline or in

certain state-operated facilities that assist veterans. Based on information from the VA, CBO estimates the increased opportunities

would result in approximately 1,500 additional work-study participants a year, at a 10-year cost of about $29 million.

MGIB eligibility.—Section 101 would increase the number of Reserve Officer Training Corps (ROTC) graduates that are eligible to

participate in MGIB. Currently, reservists who receive ROTC scholarships for tuition and fees totaling more than $2,000 for every

year they participate in the program may not subsequently begin

to participate in the MGIB. This bill would raise that maximum to

$3,400 a year. Based on information from the Defense Department,

CBO estimates that an extra 800 ROTC graduates a year would

enter the military eligible to participate in MGIB, beginning in fiscal year 2002. Using normal retention patterns and MGIB usage

35

rates, CBO estimates this provision would result in a cost of $12

million over the 2006–2011 period.

Adapted housing grants.—Section 305 would increase the

amounts of grants provided to aid certain severely disabled veterans to acquire specially adapted housing or to modify their current residence. The grants to the most severely disabled would be

increased from $43,000 to $48,000. For those veterans with certain

specific but lesser disabilities, the current grant of $8,250 would be

increased to $9,250. Assuming a slight increase in participation in

the program, CBO estimates the cost would be about $4 million in

2002, $22 million over the 2002–2006 period, and $46 million over

the 2002–2011 period.

Automobile Grants.—Section 304 would increase the amount of

grants available to certain severely disabled veterans for the purchase of an automobile and adaptive equipment. Based on current

usage, and allowing for an increase in demand for such grants,

CBO estimates that increasing the grant from $8,000 to $9,000

would increase costs by about $15 million over 10 years.

PENSION BENEFITS. Under current law, veterans with low incomes may apply for pension benefits if their permanent and total

disabilities are not service-connected and they have at least 90

days of active military service, one day of which was during a period of war. The payment of pensions can be denied or discontinued

if VA determines that the estate of the veteran is large enough that

some part of it could be consumed for the veteran’s maintenance.

Section 306 would exclude from this determination any real property that is used for farming, ranching, and similar agricultural

purposes.

VA estimates that about 130 claims were denied in 2000 because

of the value of veterans’ real property. Most of the land involved

in those cases is probably being used for agricultural purposes

since low-income veterans would be unlikely to afford the higher

tax burden on lands used for other purposes. CBO assumes the

number of claims that would be affected by this section will likely

decline in future years as the overall number of pension cases declines. Using an average yearly benefit of $6,438 and an automatic

cost-of-living adjustment, CBO estimates that enacting this bill

would increase spending for pension benefits by about $1 million

in 2002, $13 million over the 2002–2006 period, and $37 million

over the 2002–2011 period. These figures include an assumption

that VA will see a higher number of claims in the first year after

enactment as veterans who had recently been denied pension benefits due to the value of their real property apply again under the

new law. Given the advanced age and declining health of the average pension claimant, CBO assumes that only one-third of those

who had been denied pensions within the last three years will

reapply.

SGLI. Section 302 would expand coverage of SGLI to include dependents of active-duty servicemembers and reservists. Section 303

would make retroactive to October 1, 2000, an increase in the maximum coverage amount of SGLI for servicemembers who have died

in the performance of duty. Since premiums paid by policy holders

cover all the costs of this program, neither section would have any

net budgetary impact.

36

OTHER PROVISIONS. The following provisions would have an insignificant budgetary impact:

• Section 104 would extend eligibility for restorative training

to the spouses of certain disabled or deceased veterans.

Based on information from the VA, CBO expects few people

would be affected by this provision.

• Section 205 directs the VA to intensify its veterans outreach

program by providing information on all veterans’ and dependents’ benefits when a veteran or dependent first applies

to VA for any benefit. Based on information from the VA,

this increased outreach, which would be subject to the availability of appropriations, would cost less than $500,000 annually.

PAY–AS–YOU–GO CONSIDERATIONS. The Balanced Budget

and Emergency Deficit Control Act sets up pay-as-you-go procedures for legislation affecting direct spending or receipts. The net

changes in outlays and governmental receipts that are subject to

pay-as-you-go procedures are shown in the following table. For the

purposes of enforcing pay-as-you-go procedures, only the effects in

the current year, the budget year, and the succeeding four years

are counted.

By Fiscal Year, in Millions of Dollars

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Changes in outlays .. 0 46 52 59 64 69 73 77 82 86 90

Changes in receipts Not Applicable

INTERGOVERNMENTAL AND PRIVATE–SECTOR IMPACT.

H.R 801 contains no intergovernmental or private-sector mandates

as defined in UMRA. Provision of the bill would require state approving agencies (state offices that approve programs of study for

eligibility under veterans’ educational assistance) to provide outreach services to eligible veterans. Because these services are provided voluntarily by states under a contract with the Department

of Veterans Affairs, the new duties are not considered mandates

under UMRA. Furthermore, because such services are already

being provided under current law, states would incur no significant

additional costs.

ESTIMATE PREPARED BY:

Federal Costs: Sarah Jennings and Michelle S. Patterson (226–

2840).

Impact on State, Local, and Tribal Governments: Susan Sieg

Tompkins (225–3220).

Impact on the Private Sector: Sally Sagraves (226–2925).

ESTIMATE APPROVED BY:

Robert A. Sunshine, Assistant Director for Budget Analysis.

INFLATIONARY IMPACT STATEMENT

The enactment of the reported bill would have no inflationary

impact.

37

APPLICABILITY TO LEGISLATIVE BRANCH

The reported bill would not be applicable to the legislative

branch under the Congressional Accountability Act, Public Law

104–1, because the bill would only affect certain Department of

Veterans Affairs programs and benefits recipients.

STATEMENT OF FEDERAL MANDATES

The reported bill would not establish a federal mandate under

the Unfunded Reform Act, Public Law 104–4.

STATEMENT OF CONSTITUTIONAL AUTHORITY

Pursuant to Article I, section 8 of the United States Constitution,

the reported bill is authorized by Congress’ power to ‘‘provide for

the common Defense and general Welfare of the United States.’’

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the

House of Representatives, changes in existing law made by the bill,

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics,

existing law in which no change is proposed is shown in roman):

TITLE 38, UNITED STATES CODE

* * * * * * *

PART I—GENERAL PROVISIONS

* * * * * * *

CHAPTER 1—GENERAL

* * * * * * *

§ 101. Definitions

For the purposes of this title—

(1) * * *

* * * * * * *

(4)(A) The term ‘‘child’’ means (except for purposes of chapter 19

of this title (other than with respect to a child who is an insurable

dependent under section 1965(10)(B) of such chapter) and section

8502(b) of this title) a person who is unmarried and—

* * * * * * *

§ 107. Certain service deemed not to be active service

(a) Service before July 1, 1946, in the organized military forces

of the Government of the Commonwealth of the Philippines, while

such forces were in the service of the Armed Forces of the United

States pursuant to the military order of the President dated July

26, 1941, including among such military forces organized guerrilla

forces under commanders appointed, designated, or subsequently

recognized by the Commander in Chief, Southwest Pacific Area, or

38

other competent authority in the Army of the United States, shall

not be deemed to have been active military, naval, or air service

for the purposes of any law of the United States conferring rights,

privileges, or benefits upon any person by reason of the service of

such person or the service of any other person in the Armed Forces,

except benefits under—

(1) * * *

* * * * * * *

Except as provided in subsection (c) or (d), payments under such

chapters shall be made at a rate of $0.50 for each dollar authorized, and where annual income is a factor in entitlement to benefits, the dollar limitations in the law specifying such annual income

shall apply at a rate of $0.50 for each dollar. Any payments made

before February 18, 1946, to any such member under such laws

conferring rights, benefits, or privileges shall not be deemed to

have been invalid by reason of the circumstance that such member’s service was not service in the Armed Forces or any component

thereof within the meaning of any such law.

* * * * * * *

(c) In the case of benefits under subchapters II and IV of chapter

11 of this title paid by reason of service described in subsection (a)

to an individual residing in the United States who is a citizen of,

or an alien lawfully admitted for permanent residence in, the

United States, the second sentence of subsection (a) shall not

apply.

ø(c)¿ (d)(1) øIn¿ With respect to benefits under chapter 23 of this

title, in the case of an individual described in paragraph (2), the

second sentence of subsection (a) shall not apply.

* * * * * * *

PART II—GENERAL BENEFITS

* * * * * * *

CHAPTER 15—PENSION FOR NON–SERVICE–CONNECTED

DISABILITY OR DEATH OR FOR SERVICE

* * * * * * *

SUBCHAPTER II—VETERANS’ PROVISIONS

* * * * * * *

NON-SERVICE-CONNECTED DISABILITY PENSION

* * * * * * *

§ 1522. Net worth limitation

(a) The Secretary shall deny or discontinue the payment of pension to a veteran under section 1521 of this title when the corpus

of the estate of the veteran or, if the veteran has a spouse, the corpus of the estates of the veteran and of the veteran’s spouse is such

that under all the circumstances, including consideration of the annual income of the veteran, the veteran’s spouse, and the veteran’s

children, it is reasonable that some part of the corpus of such esVerDate 26-MAR-2001 00:01 Mar 27, 2001 Jkt 089006 PO 00000 Frm 00038 Fmt 6659 Sfmt 6601 E:\HR\OC\HR027.XXX pfrm04 PsN: HR027
39

tates be consumed for the veteran’s maintenance. In determining

the corpus of the estates of the veteran and the veteran’s spouse, if

any, the value of the real property of the veteran and the veteran’s

spouse and children shall be excluded if such property is used for

farming, ranching, or similar agricultural purposes.

* * * * * * *

CHAPTER 19—INSURANCE

* * * * * * *

SUBCHAPTER III—SERVICEMEN’S GROUP LIFE INSURANCE

§ 1965. Definitions

For the purpose of this subchapter—

(1) * * *

* * * * * * *

(10) The term ‘‘insurable dependent’’, with respect to a member, means the following:

(A) The member’s spouse.

(B) The member’s child, as defined in the first sentence

of section 101(4)(A) of this title.

* * * * * * *

§ 1967. Persons insured; amount

ø(a) Any policy of insurance purchased by the Secretary under

section 1966 of this title shall automatically insure against death—

ø(1) any member of a uniformed service on active duty, active duty for training, or inactive duty training scheduled in

advance by competent authority; and

ø(2) any member of the Ready Reserve of a uniformed service who meets the qualifications set forth in section 1965(5)(B)

of this title;

in the amount of $200,000, unless such member elects in writing

(A) not to be insured under this subchapter, or (B) to be insured

in an amount less than $200,000 that is evenly divisible by

$10,000. The insurance shall be effective the first day of active

duty or active duty for training, or the beginning of a period of inactive duty training scheduled in advance by competent authority,

or the first day a member of the Ready Reserve meets the qualifications set forth in subparagraph (B) or (C) of section 1965(5) of

this title, or the date certified by the Secretary to the Secretary

concerned as the date Servicemembers’ Group Life Insurance under

this subchapter for the class or group concerned takes effect,

whichever is the later date.¿

(a)(1) Subject to an election under paragraph (2), any policy of insurance purchased by the Secretary under section 1966 of this title

shall automatically insure the following persons against death:

(A) In the case of any member of a uniformed service on active duty (other than active duty for training)—

(i) the member; and

(ii) each insurable dependent of the member.

40

(B) Any member of a uniformed service on active duty for

training or inactive duty training scheduled in advance by competent authority.

(C) In the case of any member of the Ready Reserve of a uniformed service who meets the qualifications set forth in section

1965(5)(B) of this title— (i) the member; and

(ii) each insurable dependent of the member.

(2)(A) A member may elect in writing not to be insured under this

subchapter.

(B) A member may elect in writing not to insure the member’s

spouse under this subchapter.

(3)(A) Subject to subparagraphs (B) and (C), the amount for

which a person is insured under this subchapter is as follows: (i) In the case of a member, $250,000.

(ii) In the case of a member’s spouse, $100,000.

(iii) In the case of a member’s child, $10,000.

(B) A member may elect in writing to be insured or to insure the

member’s spouse in an amount less than the amount provided for

under subparagraph (A). The member may not elect to insure the

member’s child in an amount less than $10,000. The amount of insurance so elected shall, in the case of a member or spouse, be evenly divisible by $10,000.

(C) In no case may the amount of insurance coverage under this

subsection of a member’s spouse exceed the amount of insurance coverage of the member.

(4)(A) An insurable dependent of a member is not insured under

this chapter unless the member is insured under this subchapter.

(B) An insurable dependent who is a child may not be insured at

any time by the insurance coverage under this chapter of more than

one member. If an insurable dependent who is a child is otherwise

eligible to be insured by the coverage of more than one member

under this chapter, the child shall be insured by the coverage of the

member whose eligibility for insurance under this subchapter occurred first, except that if that member does not have legal custody

of the child, the child shall be insured by the coverage of the member who has legal custody of the child.

(5) The insurance shall be effective with respect to a member and

the insurable dependents of the member on the latest of the following dates:

(A) The first day of active duty or active duty for training.

(B) The beginning of a period of inactive duty training scheduled in advance by competent authority.

(C) The first day a member of the Ready Reserve meets the

qualifications set forth in section 1965(5)(B) of this title.

(D) The date certified by the Secretary to the Secretary concerned as the date Servicemembers’ Group Life Insurance under

this subchapter for the class or group concerned takes effect.

(E) In the case of an insurable dependent who is a spouse, the

date of marriage of the spouse to the member.

(F) In the case of an insurable dependent who is a child, the

date of birth of such child or, if the child is not the natural

child of the member, the date on which the child acquires status

as an insurable dependent of the member.

* * * * * * *

41

(c) øIf any member elects not to be insured under this subchapter

or to be insured in any amount less than $200,000, such member

may thereafter be insured under this subchapter in the amount of

$200,000 or any lesser amount evenly divisible by $10,000 upon

written application, proof of good health, and compliance with such

other terms and conditions as may be prescribed by the Secretary.¿

If a person eligible for insurance under this subchapter is not so insured, or is insured for less than the maximum amount provided for

the person under subparagraph (A) of subsection (a)(3), by reason

of an election made by a member under subparagraph (B) of that

subsection, the person may thereafter be insured under this subchapter in the maximum amount or any lesser amount elected as

provided in such subparagraph (B) upon written application by the

member, proof of good health of each person (other than a child) to

be so insured, and compliance with such other terms and conditions

as may be prescribed by the Secretary. Any former member insured

under Veterans’ Group Life Insurance who again becomes eligible

for Servicemembers’ Group Life Insurance and declines such coverage solely for the purpose of maintaining such member’s Veterans’ Group Life Insurance in effect shall upon termination of coverage under Veterans’ Group Life Insurance be automatically insured under Servicemen’s Group Life Insurance, if otherwise eligible therefor.

* * * * * * *

§ 1968. Duration and termination of coverage; conversion

(a) Each policy purchased under this subchapter shall contain a

provision, in terms approved by the Secretary, to the effect that

any insurance thereunder on any member of the uniformed services, and any insurance thereunder on any insurable dependent of

such a member, unless discontinued or reduced upon the written

request of the insured (or discontinued pursuant to section

1969(a)(2)(B) of this title), shall continue in effect while the member is on active duty, active duty for training, or inactive duty

training scheduled in advance by competent authority during the

period thereof, or while the member meets the qualifications set

forth in subparagraph (B) or (C) of section 1965(5) of this titleø,

and such insurance shall cease—¿ and such insurance shall cease

as follows:

(1) øwith¿ With respect to a member on active duty or active

duty for training under a call or order to duty that does not

specify a period of less than øthirty-one days—¿ 31 days, insurance under this subchapter shall cease—

(A) øone hundred and twenty days¿ 120 days after the

separation or release from active duty or active duty for

training, unless on the date of such separation or release

the member is totally disabled, under criteria established

by the Secretary, in which event the insurance shall cease

one year after the date of separation or release from such

active duty or active duty for training, or on the date the

insured ceases to be totally disabled, whichever is the earlier date, but in no event øprior to the expiration of one

hundred and twenty days¿ before the end of 120 days after

such separation or release; or

42

(B) at the end of the thirty-first day of a continuous period of (i) absence without leave, (ii) confinement by civil

authorities under a sentence adjudged by a civilian court,

or (iii) confinement by military authorities under a courtmartial sentence involving total forfeiture of pay and allowances. Any insurance so terminated as the result of

such an absence or confinement, together with any beneficiary designation in effect for such insurance at such termination thereof, shall be automatically revived as of the

date the member is restored to active duty with pay or to

active duty for training with payø;¿.

(2) øwith¿ With respect to a member on active duty or active

duty for training under a call or order to duty that specifies a

period of less than øthirty-one days¿ 31 days, insurance under

this subchapter shall cease at midnight, local time, on the last

day of such duty, unless on such date the insured is suffering

from a disability incurred or aggravated during such period

which, within øone hundred and twenty days¿ 120 days after

such date, (i) results in death, or (ii) renders the member uninsurable at standard premium rates according to the good

health standards approved by the Secretary, in which event

the insurance shall continue in force to death, or for øone hundred and twenty days¿ 120 days after such date, whichever is

the earlier dateø;¿.

(3) øwith¿ With respect to a member on inactive duty training scheduled in advance by competent authority, insurance

under this subchapter shall cease at the end of such scheduled

training period, unless at such time the insured is suffering

from a disability incurred, or aggravated during such period

which, within øone hundred and twenty days¿ 120 days after

the date of such training, (i) results in death, or (ii) renders the

member uninsurable at standard premium rates according to

the good health standards approved by the Secretary in which

event the insurance shall continue in force to death, or for øone

hundred and twenty days¿ 120 days after the date such training terminated, whichever is the earlier dateø; and¿.

(4) øwith¿ With respect to a member of the Ready Reserve

of a uniformed service who meets the qualifications set forth

in subparagraph (B) or (C) of section 1965(5) of this title, insurance under this subchapter shall cease 120 days after separation or release from such assignment, unless on the date of

such separation or release the member is totally disabled,

under criteria established by the Secretary, in which event the

insurance shall cease one year after the date of separation or

release from such assignment, or on the date the insured

ceases to be totally disabled, whichever is the earlier date, but

in no event before the end of 120 days after separation or release from such assignment.

(5) With respect to an insurable dependent of the member, insurance under this subchapter shall cease—

(A) 120 days after the date of an election made in writing

by the member to terminate the coverage; or

(B) on the earliest of—

(i) 120 days after the date of the member’s death;

43

(ii) 120 days after the date of termination of the insurance on the member’s life under this subchapter; or

(iii) 120 days after the termination of the dependent’s

status as an insurable dependent of the member.

(b)(1) Each policy purchased under this subchapter shall contain

a provision, in terms approved by the Secretary, that, except as

hereinafter provided, Servicemembers’ Group Life Insurance which

is continued in force after expiration of the period of duty or travel

under section 1967(b) or 1968(a) of this title, effective the day after

the date such insurance would cease—

(A) shall be automatically converted to Veterans’ Group Life

Insurance (to insure against death of the member only), subject

to (i) the timely payment of the initial premium under terms

prescribed by the Secretary, and (ii) the terms and conditions

set forth in section 1977 of this title; or

* * * * * * *

(3)(A) In the case of a policy purchased under this subchapter for

an insurable dependent who is a spouse, upon election of the spouse,

the policy may be converted to an individual policy of insurance

under the same conditions as described in section 1977(e) of this

title (with respect to conversion of a Veterans’ Group Life Insurance

policy to such an individual policy) upon written application for

conversion made to the participating company selected by the spouse

and payment of the required premiums. Conversion of such policy

to Veterans’ Group Life Insurance is prohibited.

(B) In the case of a policy purchased under this subchapter for an

insurable dependent who is a child, such policy may not be converted under this subsection.

* * * * * * *

§ 1969. Deductions; payment; investment; expenses

(a) * * *

* * * * * * *

(g)(1)(A) During any period in which a spouse of a member is insured under this subchapter and the member is on active duty, there

shall be deducted each month from the member’s basic or other pay

until separation or release from active duty an amount determined

by the Secretary as the premium allocable to the pay period for providing that insurance coverage. No premium may be charged for

providing insurance coverage for a child.

(B) During any month in which a member is assigned to the

Ready Reserve of a uniformed service under conditions which meet

the qualifications set forth in section 1965(5)(B) of this title and the

spouse of the member is insured under a policy of insurance purchased by the Secretary under section 1966 of this title, there shall

be contributed from the appropriation made for active duty pay of

the uniformed service concerned an amount determined by the Secretary (which shall be the same for all such members) as the share

of the cost attributable to insuring the spouse of such member under

this policy, less any costs traceable to the extra hazards of such duty

in the uniformed services. Any amounts so contributed on behalf of

any individual shall be collected by the Secretary concerned from

such individual (by deduction from pay or otherwise) and shall be

44

credited to the appropriation from which such contribution was

made.

(2)(A) The Secretary shall determine the premium amounts to be

charged for life insurance coverage for spouses of members under

this subchapter.

(B) The premium amounts shall be determined on the basis of

sound actuarial principles and shall include an amount necessary

to cover the administrative costs to the insurer or insurers providing

such insurance.

(C) Each premium rate for the first policy year shall be continued

for subsequent policy years, except that the rate may be adjusted for

any such subsequent policy year on the basis of the experience under

the policy, as determined by the Secretary in advance of that policy

year.

(h) Any overpayment of a premium for insurance coverage for an

insurable dependent of a member that is terminated under section

1968(a)(5) of this title shall be refunded to the member.

* * * * * * *

§ 1970. Beneficiaries; payment of insurance

(a) * * *

* * * * * * *

(i) Any amount of insurance in force on an insurable dependent

of a member under this subchapter on the date of the dependent’s

death shall be paid, upon the establishment of a valid claim therefor, to the member or, in the event of the member’s death before payment to the member can be made, then to the person or persons entitled to receive payment of the proceeds of insurance on the member’s

life under this subchapter.

* * * * * * *

CHAPTER 21—SPECIALLY ADAPTED HOUSING FOR

DISABLED VETERANS

* * * * * * *

§ 2102. Limitations on assistance furnished

(a) The assistance authorized by section 2101(a) of this title shall

be limited in the case of any veteran to one housing unit, and necessary land therefor, and shall be afforded under one of the following plans, at the option of the veteran but shall not exceed

ø$43,000¿ $48,000 in any one case—

(1) * * *

* * * * * * *

(b) Except as provided in section 2104(b) of this title, the assistance authorized by section 2101(b) of this title shall be limited to

the lesser of—

(1) the actual cost, or, in the case of a veteran acquiring a

residence already adapted with special features, the fair market value, of the adaptations determined by the Secretary

under such section 2101(b) to be reasonably necessary, or

(2) ø$8,250¿ $9,250.

* * * * * * *

45

CHAPTER 23—BURIAL BENEFITS

* * * * * * *

§ 2302. Funeral expenses

(a) In the case of a deceased veteran— (1) * * *

* * * * * * *

the Secretary, in the Secretary’s discretion, having due regard to

the circumstances in each case, may pay a sum not exceeding

ø$300¿ $500 (as increased from time to time under section 5312 of

this title) to such person as the Secretary prescribes to cover the

burial and funeral expenses of the deceased veteran and the expense of preparing the body and transporting it to the place of burial. For the purpose of this subsection, the term ‘‘veteran’’ includes

a person who died during a period deemed to be active military,

naval, or air service under section 106(c) of this title.

* * * * * * *

§ 2303. Death in Department facility; plot allowance

(a)(1) When a veteran dies in a facility described in paragraph

(2), the Secretary shall—

(A) pay the actual cost (not to exceed ø$300¿ $500 (as increased from time to time under section 5312 of this title)) of

the burial and funeral or, within such limits, may make contracts for such services without regard to the laws requiring

advertisement for proposals for supplies and services for the

Department; and

* * * * * * *

(b) In addition to the benefits provided for under section 2302 of

this title and subsection (a) of this section, in the case of a veteran

who is eligible for a burial allowance under such section 2302, or

under such subsection, who was discharged from the active military, naval, or air service for a disability incurred or aggravated in

line of duty, or who is a veteran of any war and who is not buried

in a national cemetery or other cemetery under the jurisdiction of

the United States—

(1) if such veteran is buried (without charge for the cost of

a plot or interment) in a cemetery, or a section of a cemetery,

that (A) is used solely for the interment of persons who are (i)

eligible for burial in a national cemetery, and (ii) members of

a reserve component of the Armed Forces not otherwise eligible

for such burial or former members of such a reserve component

not otherwise eligible for such burial who are discharged or released from service under conditions other than dishonorable,

and (B) is owned by a State or by an agency or political subdivision of a State, the Secretary shall pay to such State, agency, or political subdivision the sum of ø$150¿ $300 (as increased from time to time under section 5312 of this title) as a

plot or interment allowance for such veteran; and

(2) if such veteran (other than a veteran whose eligibility for

benefits under this subsection is based on being a veteran of

any war) is buried in a cemetery, or a section of a cemetery,

other than as described in clause (1) of this subsection, the

46

Secretary shall pay a sum not exceeding ø$150¿ $300 (as increased from time to time under section 5312 of this title) as a

plot or interment allowance to such person as the Secretary

prescribes, except that if any part of the plot or interment costs

of a burial to which this clause applies has been paid or assumed by a State, an agency or political subdivision of a State,

or a former employer of the deceased veteran, no claim for such

allowance shall be allowed for more than the difference between the entire amount of the expenses incurred and the

amount paid or assumed by any or all of the foregoing entities.

* * * * * * *

§ 2307. Death from service-connected disability

In any case in which a veteran dies as the result of a serviceconnected disability or disabilities, the Secretary, upon the request

of the survivors of such veteran, shall pay the burial and funeral

expenses incurred in connection with the death of the veteran in

an amount not exceeding the greater of (1) ø$1,500¿ $2,000 (as increased from time to time under section 5312 of this title), or (2) the

amount authorized to be paid under section 8134(a) of title 5 in the

case of a Federal employee whose death occurs as the result of an

injury sustained in the performance of duty. Funeral and burial

benefits provided under this section shall be in lieu of any benefits

authorized under sections 2302 and 2303(a)(1) and (b) of this title.

* * * * * * *

PART III—READJUSTMENT AND RELATED

BENEFITS

* * * * * * *

CHAPTER 30—ALL-VOLUNTEER FORCE EDUCATIONAL

ASSISTANCE PROGRAM

* * * * * * *

SUBCHAPTER II—BASIC EDUCATIONAL ASSISTANCE

§ 3011. Basic educational assistance entitlement for service

on active duty

(a) Except as provided in subsection (c) of this section, each individual—

(1) who—

(A) after June 30, 1985, first becomes a member of the

Armed Forces or first enters on active duty as a member

of the Armed Forces and—

ø(i) who serves an obligated period of active duty of

at least two years of continuous active duty in the

Armed Forces; or¿

(i) who (I) in the case of an individual whose obligated period of active duty is three years or more,

serves at least three years of continuous active duty in

the Armed Forces, or (II) in the case of an individual

whose obligated period of active duty is less than three

47

years, serves at least two years of continuous active

duty in the Armed Forces; or

* * * * * * *

(c)(1)***

* * * * * * *

(3) An individual who after December 31, 1976, receives a commission as an officer in the Armed Forces upon completion of a program of educational assistance under section 2107 of title 10 is not

eligible for educational assistance under this section if the individual enters on active duty—

(A) before October 1, 1996; or

(B) after September 30, 1996, and while participating in such

program received more than ø$2,000¿ $3,400 for each year of

such participation.

* * * * * * *

(e)(1) Any individual eligible for educational assistance under

this section who does not make an election under subsection (c)(1)

may contribute amounts for purposes of receiving an increased

amount of basic educational assistance as provided for under section 3015(g) of this title. Such contributions shall be in addition to

any reductions in the basic pay of such individual under subsection

(b).

(2) An individual covered by paragraph (1) may make the contributions authorized by that paragraph at any time while on active duty, but not more frequently than monthly. (3) The total amount of the contributions made by an individual under paragraph (1) may not exceed $600. Such contributions shall

be made in multiples of ø$4¿ $20.

(4) Contributions under this subsection shall be made to the

øSecretary. The¿ Secretary of the military department concerned.

That Secretary shall deposit any amounts received øby the Secretary¿ as contributions under this subsection into the Treasury as

miscellaneous receipts.

* * * * * * *

§ 3012. Basic educational assistance entitlement for service

in the Selected Reserve

(a) * * *

* * * * * * *

(d)(1)***

* * * * * * *

(3) An individual who after December 31, 1976, receives a commission as an officer in the Armed Forces upon completion of a program of educational assistance under section 2107 of title 10 is not

eligible for educational assistance under this section if the individual enters on active duty— (A) before October 1, 1996; or

(B) after September 30, 1996, and while participating in such

program received more than ø$2,000¿ $3,400 for each year of

such participation.

* * * * * * *

48

(f)(1)***

(2) An individual covered by paragraph (1) may make the contributions authorized by that paragraph at any time while on active duty, but not more frequently than monthly.

(3) The total amount of the contributions made by an individual

under paragraph (1) may not exceed $600. Such contributions shall

be made in multiples of ø$4¿ $20.

(4) Contributions under this subsection shall be made to the

øSecretary. The¿ Secretary of the military department concerned.

That Secretary shall deposit any amounts received øby the Secretary¿ as contributions under this subsection into the Treasury as

miscellaneous receipts.

* * * * * * *

§ 3014. Payment of basic educational assistance

(a) * * *

* * * * * * *

(b)(1)***

(2)(A) The amount of the basic educational assistance allowance

payable to an individual under this subsection for a month shall be

the amount of the basic educational assistance allowance to which

the individual would be entitled for the month under section 3015

of this title ø(without regard to subsection (g) of that section) were

payment made under that section instead of under this subsection¿.

* * * * * * *

(C) The number of months of entitlement charged under this

chapter in the case of an individual who has been paid a basic educational assistance allowance under this subsection shall be equal

to the number (including any fraction) determined by dividing the

total amount of such educational assistance allowance paid the individual by the full-time monthly institutional rate of educational

assistance which such individual would otherwise be paid under

subsection (a)(1), (b)(1), (c)(1), or (e)(1) of section 3015 of this title,

as the case may be.

* * * * * * *

§ 3015. Amount of basic educational assistance

(a) The amount of payment of educational assistance under this

chapter is subject to section 3032 of this title. Except as otherwise

provided in this section, in the case of an individual entitled to an

educational assistance allowance under this chapter whose obligated period of active duty on which such entitlement is based is

three years, a basic educational assistance allowance under this

subchapter shall be paid—

(1) at the monthly rate of $650 (as increased from time to

time under subsection (g)) for an approved program of education pursued on a full-time basis; or

* * * * * * *

(b) In the case of an individual entitled to an educational assistance allowance under section 3011 or 3018 of this title whose obligated period of active duty on which such entitlement is based is

49

two years, a basic educational assistance allowance under this

chapter shall (except as provided in the succeeding subsections of

this section) be paid—

(1) at the monthly rate of $528 (as increased from time to

time under subsection (g)) for an approved program of education pursued on a full-time basis; or

* * * * * * *

ø(g) In the case of an individual who has been paid a basic educational assistance allowance under section 3014(b) of this title, the

rate of the basic educational assistance allowance applicable to the

individual under this section shall be the rate otherwise applicable

to the individual under this section reduced by an amount equal

to—

ø(1) the aggregate amount of such allowances paid the individual under such section 3014(b); divided by

ø(2) 36.¿

ø(h)¿ (g) With respect to any fiscal year, the Secretary shall provide a percentage increase (rounded to the nearest dollar) in the

rates payable under subsections (a)(1) and (b)(1) 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

preceeding the 12-month period described in paragraph (1).

[Subsections (g) and (h) below take effect May 1, 2001.]

(g) In the case of an individual who has made contributions authorized by section 3011(e) or 3012(f) of this title, effective as of the

first day of the enrollment period following receipt of such contribution by the Secretary concerned, the monthly amount of basic educational assistance allowance applicable to such individual under

subsection (a), (b), or (c) shall be the monthly rate otherwise provided for under the applicable subsection increased by—

(1) an amount equal to ø$1¿ $5 for each ø$4¿ $20 contributed by such individual under section 3011(e) or 3012(f) of this

title, as the case may be, for an approved program of education

pursued on a full-time basis; or

(2) an appropriately reduced amount based on the amount so

contributed, as determined under regulations which the Secretary shall prescribe, for an approved program of education

pursued on less than a full-time basis.

ø(g)¿ (h) With respect to any fiscal year, the Secretary shall provide a percentage increase (rounded to the nearest dollar) in the

rates payable under subsections (a)(1) and (b)(1) 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

50

(2) such Consumer Price Index for the 12–month period

preceeding the 12-month period described in paragraph (1).

* * * * * * *

§ 3017. Death benefit

(a) * * *

* * * * * * *

(b) The amount of any payment made under this section shall be

equal to—

ø(1) the amount reduced from the individual’s pay under section 3011(b), 3012(c), or 3018(c) of this title, less¿

(1) the sum of (A) the total amount reduced from the individual’s basic pay under section 3011(b), 3012(c), or 3018(c) of this

title, and (B) the total amount of any contributions made by the

individual under section 3011(e) or 3012(f) of this title, less

* * * * * * *

SUBCHAPTER IV—TIME LIMITATION FOR USE OF ELIGIBILITY AND ENTITLEMENT; GENERAL AND ADMINISTRATIVE PROVISIONS

* * * * * * *

§ 3032. Limitations on educational assistance for certain individuals

(a) * * *

* * * * * * *

(b) The amount of the educational assistance allowance payable

to an individual described in subsection (a) of this section is the

lesser of (1) the amount of the educational assistance allowance

otherwise payable to such individual under this chapter, or (2) the

established charges for tuition and fees that the educational institution involved requires similarly circumstanced nonveterans enrolled in the same program to pay, or (3) the amount of the charges

of the educational institution elected by the individual under section

3014(b)(1) of this title.

* * * * * * *

CHAPTER 34—VETERANS’ EDUCATIONAL ASSISTANCE

* * * * * * *

SUBCHAPTER I—PURPOSE; DEFINITIONS

* * * * * * *

§ 3452. Definitions

For the purposes of this chapter and chapter 36 of this title—

(a) * * *

* * * * * * *

(c) The term ‘‘educational institution’’ means any public or private elementary school, secondary school, vocational school, correspondence school, business school, junior college, teachers’ college, college, normal school, professional school, university, or sciVerDate 26-MAR-2001 00:01 Mar 27, 2001 Jkt 089006 PO 00000 Frm 00050 Fmt 6659 Sfmt 6601 E:\HR\OC\HR027.XXX pfrm04 PsN: HR027
51

entific or technical institution, or other institution furnishing education for adults. For the period ending on September 30, 1996,

such term includes any entity that provides training required for

completion of any State-approved alternative teacher certification

program (as determined by the Secretary). Such term also includes

any private entity (that meets such requirements as the Secretary

may establish) that offers, either directly or under an agreement

with another entity (that meets such requirements), a course or

courses to fulfill requirements for the attainment of a license or certificate generally recognized as necessary to obtain, maintain, or advance in employment in a profession or vocation in a technological

occupation (as determined by the Secretary).

* * * * * * *

SUBCHAPTER IV—PAYMENTS TO ELIGIBLE VETERANS;

VETERAN-STUDENT SERVICES

* * * * * * *

§ 3485. Work-study allowance

(a)(1) Individuals utilized under the authority of subsection (b) of

this section shall be paid an additional educational assistance allowance (hereafter referred to as ‘‘work-study allowance’’). Such

work-study allowance shall be paid in an amount equal to the applicable hourly minimum wage times the number of hours worked

during the applicable period, in return for such individual’s agreement to perform services, during or between periods of enrollment,

aggregating not more than a number of hours equal to 25 times the

number of weeks in the semester or other applicable enrollment period, required in connection with (A) the outreach services program

under subchapter II of chapter 77 of this title as carried out under

the supervision of a Department of Veterans Affairs employee or

outreach services to servicemembers and veterans furnished by employees of State approving agencies, (B) the preparation and processing of necessary papers and other documents at educational institutions or regional offices or facilities of the Department of Veterans Affairs, (C) the provision of hospital and domiciliary care and

medical treatment under chapter 17 of this title, including the provision of such care to veterans in a State home for which payment

is made under section 1741 of this title, (D) any other activity of

the Department of Veterans Affairs as the Secretary shall determine appropriate, øor¿ (E) in the case of an individual who is receiving educational assistance under chapter 106 of title 10, activities relating to the administration of such chapter at Department

of Defense, Coast Guard, or National Guard facilities. An individual may elect, in a manner prescribed by the Secretary, to be

paid in advance an amount equal to 40 percent of the total amount

of the work-study allowance agreed to be paid under the agreement

in return for the individual’s agreement to perform the number of

hours of work specified in the agreement (but not more than an

amount equal to 50 times the applicable hourly minimum wage),

or (F) in the case of an individual who has declared a major academic discipline, activities within the department of that academic

52

discipline approved by the Secretary that complement and reinforce

the program of education pursued by that individual.

* * * * * * *

CHAPTER 35—SURVIVORS’ AND DEPENDENTS’ EDUCATIONAL ASSISTANCE

* * * * * * *

SUBCHAPTER I—DEFINITIONS

§ 3501. Definitions

(a) For the purposes of this chapter and chapter 36 of this title—

(1) * * *

* * * * * * *

(6) The term ‘‘educational institution’’ means any public or

private secondary school, vocational school, correspondence

school, business school, junior college, teachers’ college, college,

normal school, professional school, university, or scientific or

technical institution, or any other institution if it furnishes

education at the secondary school level or above. Such term

also includes any private entity (that meets such requirements

as the Secretary may establish) that offers, either directly or

under an agreement with another entity (that meets such requirements), a course or courses to fulfill requirements for the

attainment of a license or certificate generally recognized as

necessary to obtain, maintain, or advance in employment in a

profession or vocation in a technological occupation (as determined by the Secretary).

* * * * * * *

SUBCHAPTER II—ELIGIBILITY AND ENTITLEMENT

* * * * * * *

§ 3512. Periods of eligibility

(a) The educational assistance to which an eligible person (within

the meaning of section 3501(a)(1)(A) of this title) is entitled under

section 3511 of this title or subchapter V of this chapter may be

afforded the person during the period beginning on the person’s

eighteenth birthday, or on the successful completion of the person’s

secondary schooling, whichever first occurs, and ending on the person’s twenty-sixth birthday, except that— (1) * * *

* * * * * * *

(3) if the Secretary first finds that the parent from whom eligibility is derived has a service-connected total disability permanent in nature, or if the death of the parent from whom eligibility is derived occurs, after the eligible person’s eighteenth

birthday but before the person’s twenty-sixth birthday, then

(unless paragraph (4) applies) such period shall end 8 years

after the date that is elected by that person to be the beginning date of entitlement under section 3511 of this title or subchapter V of this chapter if—

53

(A) the Secretary approves that beginning date;

ø(B) the eligible person makes that election after the

person’s eighteenth birthday but before the person’s twenty-sixth birthday; and¿

(B) the eligible person elects that beginning date by not

later than the end of the 60-day period beginning on the

date on which the Secretary provides written notice to that

person of that person’s opportunity to make such election,

such notice including a statement of the deadline for the

election imposed under this subparagraph; and

(C) that beginning date—

(i) in the case of a person whose eligibility is based

on a parent who has a service-connected total disability permanent in nature, is øbetween the dates described in¿ the date determined pursuant to subsection

(d); and

* * * * * * *

(5) if the person becomes eligible by reason of the provisions

of section 3501(a)(1)(A)(iii) of this title after the person’s eighteenth birthday but before the person’s twenty-sixth birthday,

then (unless øclause (4) of this subsection¿ paragraph (4) applies) such period shall end eight years after the date on which

the person becomes eligible by reason of such provisions, but

in no event shall such period be extended beyond the person’s

thirty-first birthday by reason of this clause;

* * * * * * *

(b)(1)***

(2) Notwithstanding the provisions of paragraph (1) of this subsection, in the case of any eligible person (as defined in section

3501(a)(1)(B), (C), or (D) of this title) who was prevented from initiating or completing such person’s chosen program of education

within such period because of a physical or mental disability which

was not the result of such person’s own øwillfull¿ willful misconduct, such person shall, upon application made within one year

after (A) the last date of the delimiting period otherwise applicable

under this section, (B) the termination of the period of mental or

physical disability, or (C) October 1, 1980, whichever is the latest,

be granted an extension of the applicable delimiting period for such

length of time as the Secretary determines, from the evidence, that

such person was so prevented from initiating or completing such

program of education. When an extension of the applicable delimiting period is granted under the exception in the preceding sentence, the delimiting period will again begin running on the first

day following such eligible person’s recovery from such disability on

which it is reasonably feasible, as determined in accordance with

regulations which the Secretary shall prescribe, for such eligible

person to initiate or resume pursuit of a program of education with

educational assistance under this chapter.

* * * * * * *

54

SUBCHAPTER V—SPECIAL RESTORATIVE TRAINING

§ 3540. Purpose

The purpose of special restorative training is to overcome, or

lessen, the effects of a manifest physical or mental disability which

would handicap an eligible person (as defined in øsection

3501(a)(1)(A) of this title¿ subparagraphs (A), (B), and (D) of section 3501(a)(1) of this title) in the pursuit of a program of education.

* * * * * * *

§ 3541. Entitlement to special restorative training

(a) The Secretary at the request øof the parent or guardian¿ of

an eligible person is authorized—

(1) * * *

* * * * * * *

§ 3542. Special training allowance

(a) While the eligible person is enrolled in and pursuing a fulltime course of special restorative training, øthe parent or guardian

shall be entitled to receive on behalf of such person¿ the eligible

person shall be entitled to receive a special training allowance computed at the basic rate of $588 per month. If the charges for tuition

and fees applicable to any such course are more than $184 per calendar month, the basic monthly allowance may be increased by the

amount that such charges exceed $184 a month, øupon election by

the parent or guardian of the eligible person¿ upon election by the

eligible person to have such person’s period of entitlement reduced

by one day for each such increased amount of allowance that is

equal to one-thirtieth of the full-time basic monthly rate of special

training allowance.

* * * * * * *

§ 3543. Special administrative provisions

(a) In carrying out the Secretary’s responsibilities under this

chapter the Secretary may by agreement arrange with public or

private educational institutions or others to provide training arrangements as may be suitable and necessary to accomplish the

purposes of this subchapter. In any instance where the Secretary

finds that a customary tuition charge is not applicable, the Secretary may agree on the fair and reasonable amounts which may

be charged øthe parent or guardian for the training provided to an

eligible person¿ for the training provided to the eligible person.

* * * * * * *

(c) In a case in which the Secretary determines requires a parent

or guardian to make a request under section 3541(a) of this title on

behalf of an eligible person, the parent or guardian shall be entitled—

(1) to receive on behalf of the eligible person the special training allowance provided for under section 3542(a) of this title;

(2) to elect an increase in the basic monthly allowance provided for under such section; and

55

(3) to agree with the Secretary on the fair and reasonable

amounts which may be charged under subsection (a).

* * * * * * *

CHAPTER 36—ADMINISTRATION OF EDUCATIONAL

BENEFITS

* * * * * * *

SUBCHAPTER I—STATE APPROVING AGENCIES

* * * * * * *

§ 3672. Approval of courses

(a) * * *

* * * * * * *

(d)(1) Pursuant to regulations prescribed by the Secretary in consultation with the Secretary of Labor, the Secretary and State approving agencies shall actively promote the development of programs of training on the job (including programs of apprenticeship)

for the purposes of sections 3677 and 3687 of this title and shall

utilize the services of disabled veterans’ outreach program specialists under section 4103A of this title to promote the development

of such programs.

(2) In conjunction with outreach services furnished by the Secretary for education and training benefits under chapter 77 of this

title, each State approving agency shall conduct outreach programs

and provide outreach services to eligible persons and veterans about

education and training benefits available under applicable Federal

and State law.

* * * * * * *

§ 3680A. Disapproval of enrollment in certain courses

(a) The Secretary shall not approve the enrollment of an eligible

veteran in—

(1) * * *

* * * * * * *

(4) any independent study program except an accredited

independent study program (including open circuit television)

leading (A) to a standard college degree, or (B) to a certificate

that reflects educational attainment offered by an institution of

higher learning.

* * * * * * *

CHAPTER 39—AUTOMOBILES AND ADAPTIVE EQUIPMENT FOR CERTAIN DISABLED VETERANS AND MEMBERS OF THE ARMED FORCES

* * * * * * *

§ 3902. Assistance for providing automobile and adaptive

equipment

(a) The Secretary, under regulations which the Secretary shall

prescribe, shall provide or assist in providing an automobile or

56

other conveyance to each eligible person by paying the total purchase price of the automobile or other conveyance (including all

State, local, and other taxes) or ø$8,000¿ $9,000, whichever is the

lesser, to the seller from whom the eligible person is purchasing

under a sales agreement between the seller and the eligible person.

* * * * * * *

CHAPTER 43—EMPLOYMENT AND REEMPLOYMENT

RIGHTS OF MEMBERS OF THE UNIFORMED SERVICES

* * * * * * *

SUBCHAPTER—I GENERAL

* * * * * * *

§ 4303. Definitions

For the purposes of this chapter— (1) * * *

* * * * * * *

(13) The term ‘‘service in the uniformed services’’ means the

performance of duty on a voluntary or involuntary basis in a

uniformed service under competent authority and includes active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, a

period for which a person is absent from a position of employment for the purpose of an examination to determine the fitness of the person to perform any such duty, and a period for

which a person is absent from employment for the purpose of

performing funeral honors duty as authorized by section 12503

of title 10 or section 115 of title 32.ø.¿

* * * * * * *

CHAPTER 53—SPECIAL PROVISIONS RELATING TO

BENEFITS

* * * * * * *

§ 5312. Annual adjustment of certain benefit rates

(a) Whenever there is an increase in benefit amounts payable

under title II of the Social Security Act (42 U.S.C. 401 et seq.) as

a result of a determination made under section 215(i) of such Act

(42 U.S.C. 415(i)), the Secretary shall, effective on the date of such

increase in benefit amounts, increase each maximum annual rate

of pension under sections 1521, 1541, and 1542 of this title, the

rate of increased pension paid under such sections 1521 and 1541

on account of children, øand¿ each rate of monthly allowance paid

under section 1805 of this title, and each rate of allowance paid

under sections 2302, 2303, and 2307 of this title, as such rates were

in effect immediately prior to the date of such increase in benefit

amounts payable under title II of the Social Security Act, by the

same percentage as the percentage by which such benefit amounts

are increased.

* * * * * * *

57

PART V—BOARDS, ADMINISTRATIONS, AND

SERVICES

* * * * * * *

CHAPTER 77—VETERANS BENEFITS ADMINISTRATION

SUBCHAPTER I—ORGANIZATION; GENERAL

Sec.

7701. Organization of the Administration.

* * * * * * *

SUBCHAPTER II—VETERANS OUTREACH SERVICES PROGRAM

* * * * * * *

7727. Outreach for eligible dependents.

SUBCHAPTER II—VETERANS OUTREACH SERVICES

PROGRAM

§ 7721. Purpose; definitions

(a) * * *

* * * * * * *

(b) For the purposes of this subchapter—

(1) the term ‘‘other governmental programs’’ includes all programs under State or local laws as well as all programs under

Federal law other than those authorized by this title; and

ø(2) the term ‘‘eligible dependent’’ means an ‘‘eligible person’’

as defined in section 3501(a)(1) of this title.¿

(2) the term ‘‘eligible dependent’’ means a spouse, surviving

spouse, child, or dependent parent of a person who served in the

active military, naval, or air service.

* * * * * * *

§ 7722. Outreach services

(a) * * *

* * * * * * *

(c)(1) The Secretary shall distribute full information to eligible

veterans and eligible dependents regarding all benefits and services to which they may be entitled under laws administered by the

Department and may, to the extent feasible, distribute information

on other governmental programs (including manpower and training

programs) which the Secretary determines would be beneficial to

veterans.

(2) Whenever a veteran or dependent first applies for any benefit

under laws administered by the Secretary (including a request for

burial or related benefits or an application for life insurance proceeds), the Secretary shall provide to the veteran or dependent information concerning benefits and health care services under programs

administered by the Secretary.

* * * * * * *

§ 7723. Veterans assistance offices

(a) The Secretary shall establish and maintain veterans assistance offices at such places throughout the United States and its

58

territories and possessions, and in the Commonwealth of Puerto

Rico, as the Secretary determines to be necessary to carry out the

purposes of this subchapter. The Secretary may maintain such offices on such military 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 such offices, the Secretary shall give due regard to—

(1) the geographical distribution of veterans recently discharged or released from active military, naval, or air service;

(2) the special needs of educationally disadvantaged veterans

(including their need for accessibility of outreach services); and

(3) the necessity of providing appropriate outreach services

in less populated areas.

* * * * * * *

§ 7727. Outreach for eligible dependents

(a) In carrying out this subchapter, the Secretary shall ensure

that the needs of eligible dependents are fully addressed.

(b) The Secretary shall ensure that the availability of outreach

services and assistance for eligible dependents under this subchapter is made known through a variety of means, including the

Internet, announcements in veterans publications, and announcements to the media.

* * * * * * *

CHAPTER 58 OF TITLE 10, UNITED STATES CODE

CHAPTER 58—BENEFITS AND SERVICES FOR MEMBERS

BEING SEPARATED OR RECENTLY SEPARATED

* * * * * * *

§ 1142. Preseparation counseling; transmittal of medical

records to Department of Veterans Affairs

(a) REQUIREMENT.—(1) øAs soon as possible before, but in no

event later than 90 days before, the date of the discharge or release

from active duty of a member of the armed forces, the Secretary

concerned shall provide for individual preseparation counseling of

the member.¿ 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 as of a specific date. A notation of the provision of such

counseling with respect to each matter specified in subsection (b),

signed by the member, shall be placed in the service record of each

member receiving such counseling.

* * * * * * *

(3)(A) In the case of an anticipated retirement, preseparation

counseling shall commence as soon as possible during the 24-month

period preceding the anticipated retirement date. In the case of a

separation other than a retirement, preseparation counseling shall

commence as soon as possible during the 12-month period preceding

59

the anticipated date. Except as provided in subparagraph (B), in no

event shall preseparation counseling commence 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 before the anticipated retirement or separation date, preseparation counseling shall begin as

soon as possible within the remaining period of service.

(4)(A) Subject to subparagraph (B), the Secretary concerned shall

not provide preseparation counseling to a member who is being discharged or released before the completion of that member’s first 180

days of active duty.

(B) Subparagraph (A) shall not apply in the case of a member

who is being retired or separated for disability.

* * * * * * *

§ 1144. Employment assistance, job training assistance, and

other transitional services: Department of Labor

(a) IN GENERAL.—(1) The Secretary of Labor, in conjunction with

the Secretary of Defense, the Secretary of Transportation, and the

Secretary of Veterans Affairs, shall establish and maintain a program to furnish counseling, assistance in identifying employment

and training opportunities, help in obtaining such employment and

training, and other related information and services to members of

the armed forces under the jurisdiction of the Secretary concerned

who are being separated from active duty and the spouses of such

members. Such services shall be provided to a member øduring the

180-day period before the member is separated from active duty.¿

within the time periods provided under paragraph (3) of section

1142(a) of this title, except that the Secretary concerned shall not

provide preseparation counseling to a member described in paragraph (4)(A) of such section.

* * * * * * *

VETERANS BENEFITS AND HEALTH CARE

IMPROVEMENT ACT OF 2000

TITLE I—EDUCATIONAL ASSISTANCE

PROVISIONS

Subtitle A—Montgomery GI Bill

Educational Assistance

* * * * * * *

SEC. 111. INCREASE IN RATES OF SURVIVORS’ AND DEPENDENTS’

EDUCATIONAL ASSISTANCE.

(a) * * *

* * * * * * *

(f) ANNUAL ADJUSTMENTS TO AMOUNTS OF ASSISTANCE.—

60

(1) * * *

* * * * * * *

(3) EFFECTIVE DATE.—Sections ø3654¿ 3564 and 3687(d) of

title 38, United States Code, as added by this subsection, shall

take effect on October 1, 2001.

* * * * * * *

TITLE III—COMPENSATION, INSURANCE, HOUSING, EMPLOYMENT, AND

MEMORIAL AFFAIRS PROVISIONS

* * * * * * *

Subtitle C—Housing and Employment

Programs

* * * * * * *

SEC. 323. EMPLOYERS REQUIRED TO GRANT LEAVE OF ABSENCE FOR

EMPLOYEES TO PARTICIPATE IN HONOR GUARDS FOR FUNERALS OF VETERANS.

(a) DEFINITION OF SERVICE IN THE UNIFORMED SERVICES.—Section 4303(13) is amended—

(1) by striking ‘‘and’’ after ‘‘National Guard duty,’’; and

* * * * * * *

TITLE IV—OTHER MATTERS

SEC. 401. BENEFITS FOR THE CHILDREN OF WOMEN VIETNAM VETERANS WHO SUFFER FROM CERTAIN BIRTH DEFECTS.

(a) * * *

* * * * * * *

(e) CONFORMING AMENDMENTS.—(1) Section 1802 is amended by

striking ‘‘øthis¿ This chapter’’ and inserting ‘‘øthis¿ This subchapter’’.

* * * * * * *

SEC. 402. EXTENSION OF CERTAIN EXPIRING AUTHORITIES.

(a) * * *

(b) HOME LOAN FEES.—Section 3729 is amended by striking everything after the section heading and inserting the following:

‘‘(a) * * *

‘‘(b) DETERMINATION OF FEE.—(1) * * *

‘‘(2) The loan fee table referred to in paragraph (1) is as follows:

61

‘‘LOAN FEE TABLE

Type of loan Active duty

veteran Reservist Other obligor

(A)(i) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any

other initial loan described in section 3710(a) other

than with 5-down or 10-down (closed before October 1, 2008) .................................................................. 2.00 2.75 NA

****** *

(J) Loan under section 3733(a) ...................................... 2.25 2.25 2.25ø’’.¿

* * * * * * *

SECTION 3 OF THE HOMELESS VETERANS

COMPREHENSIVE SERVICE PROGRAMS ACT OF 1992

SEC. 3. GRANTS.

(a) AUTHORITY TO MAKE GRANTS.—(1) Subject to the availability

of appropriations provided for under section 12, the Secretary of

Veterans Affairsø, during,¿ shall make grants to assist eligible entities in establishing new programs to furnish outreach, rehabilitative services, vocational counseling and training, and transitional

housing assistance to homeless veterans.

* * * * * * *

Æ