I 

109TH CONGRESS 

1ST SESSION S. 1235 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 29, 2005 

Referred to the Committee on Veterans’ Affairs 

AN ACT 

To amend title 38, United States Code, to extend the availability of $400,000 in life insurance coverage to 

servicemembers and veterans, to make a stillborn child 

an insurable dependent for purposes of the 

Servicemembers’ Group Life Insurance program, to make 

technical corrections to the Veterans Benefits Improvement Act of 2004, to make permanent a pilot program 

for direct housing loans for Native American veterans, 

and to require an annual plan on outreach activities 

of the Department of Veterans Affairs. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Veterans Benefits Improvement Act of 2005’’. 
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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—INSURANCE MATTERS 

Sec. 101. Group Life Insurance. 

Sec. 102. Treatment of stillborn children as insurable dependents under 

Servicemembers’ Group Life Insurance program. 

TITLE II—HOUSING MATTERS 

Sec. 201. Adjustable rate mortgages. 

Sec. 202. Technical corrections to Veterans Benefits Improvement Act of 2004. 

Sec. 203. Permanent authority for housing loans for Native American veterans. 

TITLE III—OTHER MATTERS 

Sec. 301. Annual plan on outreach activities. 

Sec. 302. Extension of reporting requirements on equitable relief cases. 

Sec. 303. Inclusion of additional diseases and conditions in diseases and disabilities presumed to be associated with prisoner of war status. 

Sec. 304. Post traumatic stress disorder claims. 

3 TITLE I—INSURANCE MATTERS 

4 SEC. 101. GROUP LIFE INSURANCE. 

5 (a) SERVICEMEMBERS’ GROUP LIFE INSURANCE.— 

6 Section 1967 of title 38, United States Code, as in effect 

7 on October 1, 2005, is amended— 

8 (1) in subsection (a)— 

9 (A) in paragraph (2), by adding at the end 

10 the following: 

11 ‘‘(C) With respect to a policy of insurance covering 

12 an insured member, the Secretary concerned shall make 

13 a good-faith effort to notify the spouse of the member, 

14 at the last address of the spouse in the records of the Sec15 retary concerned, if the member elects, prior to discharge 

16 from the military, naval, or air service, to— 
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1 ‘‘(i) reduce amounts of insurance coverage of 

2 the member; or 

3 ‘‘(ii) name a beneficiary other than the mem4 ber’s spouse or child. 

5 ‘‘(D) The failure of the Secretary concerned to pro6 vide timely notification under subparagraph (C) shall not 

7 affect the validity of an election by a member. 

8 ‘‘(E) If an unmarried member marries after having 

9 made one or more elections to reduce or decline insurance 

10 coverage or to name beneficiaries, the Secretary concerned 

11 is not required to notify the spouse of such marriage of 

12 such elections. Elections made after such marriage are 

13 subject to the notice requirements under subparagraph 

14 (C).’’; and 

15 (B) in paragraph (3)— 

16 (i) in subparagraph (A), by striking 

17 clause (i) and inserting the following: 

18 ‘‘(i) In the case of a member, $400,000.’’; and 

19 (ii) in subparagraph (B), by striking 

20 ‘‘member or spouse’’ and inserting ‘‘mem21 ber, be evenly divisible by $50,000 and, in 

22 the case of a member’s spouse’’; and 

23 (2) in subsection (d), by striking ‘‘$250,000’’ 

24 and inserting ‘‘$400,000’’. 
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1 (b) DURATION OF COVERAGE.—Section 1968(a) of 

2 title 38, United States Code, is amended— 

3 (1) in paragraph (1)(A), by striking ‘‘one year’’ 

4 and inserting ‘‘2 years’’; and 

5 (2) in paragraph (4), by striking ‘‘one year’’ 

6 and inserting ‘‘2 years’’. 

7 (c) VETERANS’ GROUP LIFE INSURANCE.—Section 

8 1977(a) of title 38, United States Code, is amended by 

9 striking ‘‘$250,000’’ each place it appears and inserting 

10 ‘‘$400,000’’. 

11 (d) CONSTRUCTION OF CERTAIN OTHER AMEND12 MENTS.—Notwithstanding subsection (h) of section 1012 

13 of Public Law 109–13, the amendments made by sub14 sections (a)(1), (c), (d), (e)(2), (f), and (g) of such section 

15 shall not go into effect on September 1, 2005, as otherwise 

16 provided by such subsection (h), and shall not be treated 

17 for any purposes as having gone into effect on that date. 

18 (e) EFFECTIVE DATE.—(1) The amendments made 

19 by subsection (a) of this section shall take effect on Sep20 tember 1, 2005. 

21 (2) The amendments made by subsections (b) and (c) 

22 of this section shall take effect on October 1, 2005, imme23 diately after the execution of section 1012(i) of Public 

24 Law 109–13. 
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1 (3) If the date of the enactment of this Act occurs 

2 after September 1, 2005, and before October 1, 2005, the 

3 provisions of paragraph (2) of section 1967(a) of title 38, 

4 United States Code, shall, for purposes of the execution 

5 of the amendments made by subsection (a) of this section, 

6 be such provisions as in effect on May 10, 2005, the day 

7 before the date of the enactment of Public Law 109–13. 

8 SEC. 102. TREATMENT OF STILLBORN CHILDREN AS INSUR9 ABLE DEPENDENTS UNDER 

10 SERVICEMEMBERS’ GROUP LIFE INSURANCE 

11 PROGRAM. 

12 (a) TREATMENT.—Section 1965(10) of title 38, 

13 United States Code, is amended by adding at the end the 

14 following new subparagraph: 

15 ‘‘(C) The member’s stillborn child.’’. 

16 (b) CONFORMING AMENDMENT.—Section 101(4)(A) 

17 of such title is amended by striking ‘‘section 1965(10)(B)’’ 

18 in the matter preceding clause (i) and inserting ‘‘subpara19 graph (B) or (C) of section 1965(10)’’. 

20 TITLE II—HOUSING MATTERS 

21 SEC. 201. ADJUSTABLE RATE MORTGAGES. 

22 Section 3707A(c)(4) of title 38, United States Code, 

23 is amended by striking ‘‘1 percentage point’’ and inserting 

24 ‘‘such percentage as the Secretary may prescribe’’. 
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1 SEC. 202. TECHNICAL CORRECTIONS TO VETERANS BENE2 FITS IMPROVEMENT ACT OF 2004. 

3 (a) IN GENERAL.—Section 2101 of title 38, United 

4 States Code, as amended by section 401 of the Veterans 

5 Benefits Improvement Act of 2004 (Public Law 108–454), 

6 is further amended— 

7 (1) by redesignating subsection (c) as sub8 section (d); 

9 (2) by inserting after subsection (b) a new sub10 section (c) consisting of the text of subsection (c) of 

11 such section 2101 as in effect immediately before 

12 the enactment of such Act, modified— 

13 (A) by inserting after ‘‘(c)’’ the following: 

14 ‘‘ASSISTANCE TO MEMBERS OF THE ARMED

15 FORCES.—’’; 

16 (B) in paragraph (1)— 

17 (i) in the first sentence, by striking 

18 ‘‘paragraph (1), (2), or (3)’’ and inserting 

19 ‘‘subparagraph (A), (B), (C), or (D) of 

20 paragraph (2)’’; and 

21 (ii) in the second sentence, by striking 

22 ‘‘the second sentence’’ and inserting ‘‘para23 graph (3)’’; and 

24 (C) in paragraph (2)— 
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1 (i) in the first sentence, by striking 

2 ‘‘paragraph (1)’’ and inserting ‘‘paragraph 

3 (2)’’; and 

4 (ii) in the second sentence, by striking 

5 ‘‘paragraph (2)’’ and inserting ‘‘paragraph 

6 (3)’’; and 

7 (3) in subsection (a)(3), by striking ‘‘subsection 

8 (c)’’ in the matter preceding subparagraph (A) and 

9 inserting ‘‘subsection (d)’’. 

10 (b) EFFECTIVE DATE.—The amendments made by 

11 subsection (a) shall take effect immediately after the en12 actment of the Veterans Benefits Improvement Act of 

13 2004 (Public Law 108–454). 

14 SEC. 203. PERMANENT AUTHORITY FOR HOUSING LOANS 

15 FOR NATIVE AMERICAN VETERANS. 

16 (a) PERMANENT AUTHORITY.—Section 3761 of title 

17 38, United States Code, is amended to read as follows: 

18 ‘‘§ 3761. Authority for housing loans for Native Amer19 ican veterans 

20 ‘‘(a) The Secretary shall make direct housing loans 

21 to Native American veterans in accordance with the provi22 sions of this subchapter. 

23 ‘‘(b) The purpose of loans under this subchapter is 

24 to permit Native American veterans to purchase, con25 struct, or improve dwellings on trust land.’’. 
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1 (b) CONFORMING AMENDMENTS.—Section 3762 of 

2 such title is amended— 

3 (1) in subsection (a), by inserting ‘‘under this 

4 subchapter’’ after ‘‘Native American veteran’’ in the 

5 matter preceding paragraph (1); 

6 (2) in subsection (b)(1)(E), by striking ‘‘in 

7 order to ensure’’ and all that follows and inserting 

8 a period; 

9 (3) in subsection (c)(1)(B), by striking ‘‘shall 

10 be the amount’’ and all that follows in the second 

11 sentence and inserting ‘‘shall be such amount as the 

12 Secretary considers appropriate for the purpose of 

13 this subchapter.’’; 

14 (4) in subsection (d)(1), by striking the second 

15 sentence; 

16 (5) in subsection (i)— 

17 (A) in paragraph (1), by striking ‘‘of the 

18 pilot program’’ and all that follows and insert19 ing ‘‘of the availability of direct housing loans 

20 for Native American veterans under this sub21 chapter.’’; and 

22 (B) in paragraph (2)— 

23 (i) in subparagraph (A), by striking 

24 ‘‘under the pilot program’’ and all that fol-
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1 lows and inserting ‘‘under this sub2 chapter’’; and 

3 (ii) in subparagraph (E), by striking 

4 ‘‘in participating in the pilot program’’ and 

5 inserting ‘‘in participating in the making 

6 of direct loans under this subchapter’’; and 

7 (6) by striking subsection (j). 

8 (c) CLERICAL AMENDMENTS.—(1) The heading of 

9 subchapter V of chapter 37 of such title is amended to 

10 read as follows: 

11 ‘‘Subchapter V—Housing Loans for Native 

12 American Veterans’’. 

13 (2) The table of contents for such chapter is amend14 ed— 

15 (A) by striking the matter relating to the sub16 chapter heading of subchapter V and inserting the 

17 following new item: 

‘‘SUBCHAPTER V—HOUSING LOANS FOR NATIVE AMERICAN VETERANS’’; 

18 and 

19 (B) by striking the item relating to section 

20 3761 and inserting the following new item: 

‘‘3761. Authority for housing loans for Native American veterans.’’. 
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1 TITLE III—OTHER MATTERS 

2 SEC. 301. ANNUAL PLAN ON OUTREACH ACTIVITIES. 

3 (a) ANNUAL PLAN REQUIRED.—Subchapter II of 

4 chapter 5 of title 38, United States Code, is amended by 

5 inserting after section 523 the following new section: 

6 ‘‘§ 523A. Annual plan on outreach activities 

7 ‘‘(a) ANNUAL PLAN REQUIRED.—The Secretary shall 

8 prepare each year a plan for the outreach activities of the 

9 Department for the following year. 

10 ‘‘(b) ELEMENTS.—Each annual plan under sub11 section (a) shall include the following: 

12 ‘‘(1) Plans for efforts to identify veterans who 

13 are not enrolled or registered with the Department 

14 for benefits or services under the programs adminis15 tered by the Secretary. 

16 ‘‘(2) Plans for informing veterans and their de17 pendents of modifications of the benefits and serv18 ices under the programs administered by the Sec19 retary, including eligibility for medical and nursing 

20 care and services. 

21 ‘‘(c) COORDINATION IN DEVELOPMENT.—In devel22 oping an annual plan under subsection (a), the Secretary 

23 shall consult with the following: 
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1 ‘‘(1) Directors or other appropriate officials of 

2 organizations approved by the Secretary under sec3 tion 5902 of this title. 

4 ‘‘(2) Directors or other appropriate officials of 

5 State and local education and training programs. 

6 ‘‘(3) Representatives of non-governmental orga7 nizations that carry out veterans outreach programs. 

8 ‘‘(4) Representatives of State and local veterans 

9 employment organizations. 

10 ‘‘(5) Businesses and professional organizations. 

11 ‘‘(6) Other individuals and organizations that 

12 assist veterans in adjusting to civilian life. 

13 ‘‘(d) INCORPORATION OF ASSESSMENT OF PREVIOUS

14 ANNUAL PLANS.—In developing an annual plan under 

15 subsection (a), the Secretary shall take into account the 

16 lessons learned from the implementation of previous an17 nual plans under such subsection. 

18 ‘‘(e) INCORPORATION OF RECOMMENDATIONS TO IM19 PROVE OUTREACH AND AWARENESS.—In developing an 

20 annual plan under subsection (a), the Secretary shall in21 corporate the recommendations for the improvement of 

22 veterans outreach and awareness activities included in the 

23 report submitted to Congress by the Secretary pursuant 

24 to section 805 of the Veterans Benefits Improvement Act 

25 of 2004 (Public Law 108–454).’’. 
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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 at the beginning of such chapter is amended by inserting 

3 after the item relating to section 523 the following new 

4 item: 

‘‘523A. Annual plan on outreach activities.’’. 

5 SEC. 302. EXTENSION OF REPORTING REQUIREMENTS ON 

6 EQUITABLE RELIEF CASES. 

7 Section 503(c) of title 38, United States Code, is 

8 amended by striking ‘‘December 31, 2004’’ and inserting 

9 ‘‘December 31, 2009’’. 

10 SEC. 303. INCLUSION OF ADDITIONAL DISEASES AND CON11 DITIONS IN DISEASES AND DISABILITIES 

12 PRESUMED TO BE ASSOCIATED WITH PRIS13 ONER OF WAR STATUS. 

14 Section 1112(b)(3) of title 38, United States Code, 

15 is amended by adding at the end the following new sub16 paragraphs: 

17 ‘‘(L) Atherosclerotic heart disease or hyper18 tensive vascular disease (including hypertensive 

19 heart disease) and their complications (including 

20 myocardial infarction, congestive heart failure and 

21 arrhythmia). 

22 ‘‘(M) Stroke and its complications.’’. 
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1 SEC. 304. POST TRAUMATIC STRESS DISORDER CLAIMS. 

2 The Secretary shall develop and implement policy and 

3 training initiatives to standardize the assessment of post 

4 traumatic stress disorder disability compensation claims. 

Passed the Senate September 28, 2005. 

Attest: EMILY J. REYNOLDS, 

Secretary.