114TH CONGRESS 

2D SESSION H. R. 677 

AN ACT 

To amend title 38, United States Code, to provide for annual 

cost-of-living adjustments to be made automatically by 

law each year in the rates of disability compensation 

for veterans with service-connected disabilities and the 

rates of dependency and indemnity compensation for survivors of certain service-connected disabled veterans, and 

for other purposes. 
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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 ‘‘American Heroes COLA Act of 2015’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Expansion of eligibility for medallions. 

Sec. 3. Definitions relating to claims for benefits under laws administered by 

the Secretary of Veterans Affairs. 

Sec. 4. Quarterly reports on formal and informal claims for benefits under laws 

administered by Secretary of Veterans Affairs. 

Sec. 5. Expedited payment of survivor’s benefits. 

Sec. 6. Priority for processing claims of the Department of Veterans Affairs. 

Sec. 7. Treatment of medical evidence provided by non-Department of Veterans 

Affairs medical professionals in support of claims for disability 

compensation. 

Sec. 8. Automatic annual increase in rates of disability compensation and dependency and indemnity compensation. 

Sec. 9. Improvement of fiduciaries for veterans. 

Sec. 10. Board of Veterans’ Appeals video hearings. 

Sec. 11. Improvements to authority for performance of medical disabilities examinations by contract physicians. 

Sec. 12. Pilot program on fully developed appeals. 

Sec. 13. Deadline for certification of appeals forms by regional offices of the 

Department of Veterans Affairs. 

Sec. 14. Evaluation of backlog of disability claims and appeals of claims of Department of Veterans Affairs. 

Sec. 15. Methods for validating certain World War II Merchant Mariner service 

considered to be active service by the Secretary of Veterans Affairs. 

Sec. 16. Designation of American World War II Cities. 

Sec. 17. Sense of Congress regarding American veterans disabled for life. 

Sec. 18. Extension of pilot program on counseling in retreat settings for women 

veterans newly separated from service in the Armed Forces. 

8 SEC. 2. EXPANSION OF ELIGIBILITY FOR MEDALLIONS. 

9 Section 2306(d)(4) of title 38, United States Code, 

10 is amended to read as follows: 

11 ‘‘(4)(A) In lieu of furnishing a headstone or marker 

12 under this subsection to a deceased individual described 
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1 in subparagraph (B), the Secretary may furnish, upon re2 quest, a medallion or other device of a design determined 

3 by the Secretary to signify the deceased individual’s status 

4 as a veteran, to be attached to a headstone or marker fur5 nished at private expense. 

6 ‘‘(B) A deceased individual described in this sub7 section is an individual who— 

8 ‘‘(i) served in the Armed Forces on or after 

9 April 6, 1917; and 

10 ‘‘(ii) is eligible for a headstone or marker fur11 nished under paragraph (1) (or would be so eligible 

12 but for the date of the death of the individual).’’. 

13 SEC. 3. DEFINITIONS RELATING TO CLAIMS FOR BENEFITS 

14 UNDER LAWS ADMINISTERED BY THE SEC15 RETARY OF VETERANS AFFAIRS. 

16 (a) DEFINITIONS.— 

17 (1) IN GENERAL.—Section 5100 of title 38, 

18 United States Code, is amended to read as follows: 

19 ‘‘§ 5100. Definitions 

20 ‘‘In this chapter: 

21 ‘‘(1) The term ‘claimant’ means any individual 

22 applying for, or submitting a claim for, any benefit 

23 under the laws administered by the Secretary. 

24 ‘‘(2) The term ‘claim’ means a communication 

25 in writing requesting a determination of entitlement 
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1 or evidencing a belief in entitlement to a benefit 

2 under the laws administered by the Secretary. 

3 ‘‘(3) The term ‘formal claim’ means a claim 

4 submitted on an application form prescribed by the 

5 Secretary.’’. 

6 (2) CLERICAL AMENDMENT.—The table of sec7 tions at the beginning of chapter 51 of such title is 

8 further amended by striking the item relating to sec9 tion 5100 and inserting the following new item: 

‘‘5100. Definitions.’’. 

10 (b) EFFECTIVE DATE.—Section 5100 of title 38, 

11 United States Code, as amended by subsection (a), shall 

12 take effect on the date of the enactment of this Act and 

13 shall apply with respect to a claim submitted on or after 

14 such date. 

15 SEC. 4. QUARTERLY REPORTS ON FORMAL AND INFORMAL 

16 CLAIMS FOR BENEFITS UNDER LAWS ADMIN17 ISTERED BY SECRETARY OF VETERANS AF18 FAIRS. 

19 (a) QUARTERLY REPORTS.—During the five-year pe20 riod beginning on the date of the enactment of this Act, 

21 the Secretary shall submit to the Committees on Veterans’ 

22 Affairs of the Senate and House of Representatives quar23 terly reports on formal and informal claims submitted to 

24 the Secretary. Each such report shall include, for the 3- 

25 month period covered by the report— 
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1 (1) the total number of claims submitted to the 

2 Secretary; 

3 (2) the total number of informal claims sub4 mitted to the Secretary; 

5 (3) the total number of formal claims submitted 

6 to the Secretary; 

7 (4) the total number of forms indicating an in8 tent to file a claim for benefits submitted to the Sec9 retary; 

10 (5) the total number of claims notification let11 ters that included an invitation to the claimant to 

12 submit an additional formal claim that was reason13 ably raised during the adjudication of the claim for 

14 which the notification letter is sent; 

15 (6) of the claimants who received notification 

16 letters described in paragraph (5), the total number 

17 who submitted a formal claim in response to the in18 vitation included in the letter; 

19 (7) the total number of electronically filed 

20 claims submitted to the Secretary; and 

21 (8) the total number of fully-developed claims 

22 submitted to the Secretary. 

23 (b) SENSE OF CONGRESS.—It is the sense of Con24 gress that the Secretary of Veterans Affairs should de25 velop a designated form for an increase or reopening of 
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1 a claim that does not require the resubmittal of informa2 tion previously submitted on a formal claim form. 

3 (c) DEFINITIONS.—In this section: 

4 (1) The terms ‘‘claim’’, ‘‘claimant’’, and ‘‘for5 mal claim’’ have the meanings given such terms in 

6 section 5100 of title 38, United States Code, as 

7 amended by section 4. 

8 (2) The term ‘‘informal claim’’ means a com9 munication in writing requesting a determination of 

10 entitlement or evidencing a belief in entitlement, to 

11 a benefit under the laws administered by the Sec12 retary of Veterans Affairs that— 

13 (A) is submitted in a format other than on 

14 an application form prescribed by the Secretary; 

15 (B) indicates an intent to apply for one or 

16 more benefits under the laws administered by 

17 the Secretary; 

18 (C) identifies the benefit sought; 

19 (D) is made or submitted by a claimant, 

20 his or her duly authorized representative, a 

21 Member of Congress, or another person acting 

22 on behalf of a claimant who meets the require23 ments established by the Secretary for such 

24 purpose; and 
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1 (E) may include a report of examination or 

2 hospitalization, if the report relates to a dis3 ability which may establish such an entitlement. 

4 (3) The term ‘‘reasonably raised’’ with respect 

5 to a claim means that evidence of an entitlement to 

6 a benefit under the laws administered by the Sec7 retary is inferred or logically placed at issue upon a 

8 sympathetic reading of another claim and the record 

9 developed with respect to that claim. 

10 SEC. 5. EXPEDITED PAYMENT OF SURVIVOR’S BENEFITS. 

11 (a) IN GENERAL.—Section 5101(a)(1) of title 38, 

12 United States Code, is amended— 

13 (1) by striking ‘‘A specific’’ and inserting ‘‘(A) 

14 Except as provided in subparagraph (B), a specific’’; 

15 and 

16 (2) by adding at the end the following new sub17 paragraph: 

18 ‘‘(B)(i) The Secretary may pay benefits under chap19 ters 13 and 15 and sections 2302, 2307, and 5121 of this 

20 title to a survivor of a veteran who has not filed a formal 

21 claim if the Secretary determines that the record contains 

22 sufficient evidence to establish the entitlement of the sur23 vivor to such benefits. 

24 ‘‘(ii) For purposes of this subparagraph and section 

25 5110 of this title, the earlier of the following dates shall 
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1 be treated as the date of the receipt of the survivor’s appli2 cation for benefits described in clause (i): 

3 ‘‘(I) The date on which the survivor of a vet4 eran (or the representative of such a survivor) noti5 fies the Secretary of the death of the veteran 

6 through a death certificate or other relevant medical 

7 evidence indicating that the death was due to a serv8 ice-connected or compensable disability. 

9 ‘‘(II) The head of any other department or 

10 agency of the Federal Government notifies the Sec11 retary of the death of the veteran. 

12 ‘‘(iii) In notifying the Secretary of the death of a vet13 eran as described in clause (ii)(I), the survivor (or the rep14 resentative of such a survivor) may submit to the Sec15 retary additional documents relating to such death without 

16 being required to file a formal claim.’’. 

17 (b) REPORT.— 

18 (1) IN GENERAL.—Not later than one year 

19 after the date of the enactment of this Act, the Sec20 retary of Veterans Affairs shall submit to the Com21 mittee on Veterans’ Affairs of the Senate and the 

22 Committee on Veterans’ Affairs of the House of 

23 Representatives a report on benefits paid pursuant 

24 to covered claims. 
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1 (2) CONTENTS.—The report under paragraph 

2 (1) shall include the following: 

3 (A) The number of covered claims adju4 dicated during the one-year period preceding 

5 the date of the report, disaggregated by the fol6 lowing: 

7 (i) Claims in which the claimant 

8 claimed entitlement to compensation on the 

9 basis of the claimant’s status as the spouse 

10 of a deceased veteran. 

11 (ii) Claims in which the claimant 

12 claimed entitlement to compensation on the 

13 basis of the claimant’s status as the child 

14 of a deceased veteran. 

15 (iii) Claims in which the claimant 

16 claimed entitlement to compensation on the 

17 basis of the claimant’s status as the parent 

18 of a deceased veteran. 

19 (B) The number of covered claims that 

20 were adjudicated during such period and for 

21 which compensation was not awarded, 

22 disaggregated by clauses (i) through (iii) of 

23 subparagraph (A). 

24 (C) A comparison of the accuracy and 

25 timeliness of covered claims adjudicated during 
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1 such period with non-covered claims filed by 

2 survivors of a veteran. 

3 (D) The findings of the Secretary with re4 spect to adjudicating covered claims. 

5 (E) Such recommendations as the Sec6 retary may have for legislative or administrative 

7 action to improve the adjudication of claims 

8 submitted to the Secretary for benefits under 

9 chapters 13 and 15 and sections 2302, 2307, 

10 and 5121 of title 38, United States Code. 

11 (3) COVERED CLAIM DEFINED.—In this sub12 section, the term ‘‘covered claim’’ means a claim 

13 covered by section 5101(a)(1)(B) of title 38, United 

14 States Code, as added by subsection (a). 

15 (c) EFFECTIVE DATE.—The amendments made by 

16 subsection (a) shall apply with respect to claims for bene17 fits based on a death occurring on or after the date of 

18 the enactment of this Act. 

19 SEC. 6. PRIORITY FOR PROCESSING CLAIMS OF THE DE20 PARTMENT OF VETERANS AFFAIRS. 

21 (a) IN GENERAL.—Subchapter I of chapter 51 of title 

22 38, United States Code, is amended by adding at the end 

23 the following new section: 
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1 ‘‘§ 5109C. Priority for processing claims 

2 ‘‘(a) PRIORITY.—In processing claims for compensa3 tion under this chapter, the Secretary shall provide the 

4 following claimants with priority over other claimants: 

5 ‘‘(1) Veterans who have attained the age of 70. 

6 ‘‘(2) Veterans who are terminally ill. 

7 ‘‘(3) Veterans with life-threatening illnesses. 

8 ‘‘(4) Homeless veterans (as defined in section 

9 2002 of this title). 

10 ‘‘(5) Veterans who were awarded the Medal of 

11 Honor. 

12 ‘‘(6) Veterans who are former prisoners of war. 

13 ‘‘(7) Veterans whose claims are being reviewed 

14 again in relation to a previously denied claim relat15 ing to military sexual trauma. 

16 ‘‘(8) Veterans whom the Secretary determines, 

17 on a case-by-case basis, are seriously or very seri18 ously injured. 

19 ‘‘(9) Veterans whom the Secretary determines, 

20 on a case-by-case basis, should be given priority 

21 under this section based on an application for good 

22 cause established by the Secretary. 

23 ‘‘(b) REGULATIONS.—The Secretary shall prescribe 

24 regulations to carry out subsection (a).’’. 

25 (b) CLERICAL AMENDMENT.—The table of sections 

26 at the beginning of such chapter is amended by inserting 
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1 after the item relating to section 5109B the following new 

2 item: 

‘‘5109C. Priority for processing claims.’’. 

3 SEC. 7. TREATMENT OF MEDICAL EVIDENCE PROVIDED BY 

4 NON-DEPARTMENT OF VETERANS AFFAIRS 

5 MEDICAL PROFESSIONALS IN SUPPORT OF 

6 CLAIMS FOR DISABILITY COMPENSATION. 

7 (a) ACCEPTANCE OF REPORTS OF PRIVATE PHYSI8 CIAN EXAMINATIONS.—Section 5125 of title 38, United 

9 States Code, is amended— 

10 (1) by striking ‘‘For purposes’’ and inserting 

11 ‘‘(a) IN GENERAL.—For purposes’’; and 

12 (2) by adding at the end the following new sub13 sections: 

14 ‘‘(b) SUFFICIENCY OF EVIDENCE.—If a veteran has 

15 submitted a medical opinion or report of a medical exam16 ination administered by a private physician in support of 

17 the veteran’s claim, the Secretary may not order a medical 

18 examination to be administered by a Department physi19 cian unless the Secretary provides the veteran with a thor20 ough explanation of why the medical opinion or report 

21 submitted by the veteran was not sufficiently complete and 

22 the reason why additional medical evidence is necessary. 

23 ‘‘(c) SUFFICIENTLY COMPLETE DEFINED.—For pur24 poses of a medical opinion or report described in sub25 section (a), the term ‘sufficiently complete’ means com-
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1 petent, credible, probative, and containing such informa2 tion as may be required to make a decision on the claim 

3 for which the medical opinion or report is provided.’’. 

4 (b) APPLICATION.—The amendment made by sub5 section (a) shall apply with respect to medical evidence 

6 submitted after the date that is one year after the date 

7 of the enactment of this Act by veterans who have not 

8 submitted any claim for disability compensation to the 

9 Secretary of Veterans Affairs before such date. 

10 (c) ANNUAL REPORTS.— 

11 (1) IN GENERAL.—During the three-year period 

12 beginning three years after the date of the enact13 ment of this Act, the Secretary of Veterans Affairs 

14 shall submit to the Committees on Veterans’ Affairs 

15 of the House of Representatives and the Senate an 

16 annual report on the implementation of section 

17 5125(b) of title 38, United States Code, as added by 

18 subsection (a). 

19 (2) MATTERS INCLUDED.—Each report under 

20 paragraph (1) shall include, with respect to the year 

21 covered by the report, the following: 

22 (A) The number of veterans who submitted 

23 a medical opinion or report of a medical exam24 ination administered by a private physician in 

25 support of the veteran’s claim for disability 
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1 compensation as described in section 5125(b) of 

2 title 38, United States Code, as added by sub3 section (a). 

4 (B) Of the number of veterans described in 

5 subparagraph (A), the number of veterans 

6 whose medical opinion or report of a medical 

7 examination administered by a private physician 

8 was determined by the Secretary to not be suf9 ficiently complete pursuant to such section 

10 5125(b), including the five most frequent rea11 sons for such a determination. 

12 (C) A comparison of the approval rate of 

13 claims for disability compensation with respect 

14 to— 

15 (i) veterans who submitted medical 

16 opinions or reports of a medical examina17 tion administered by a private physician in 

18 support of the veteran’s claim; and 

19 (ii)(I) veterans who did submit such 

20 opinions or reports but such opinions or 

21 reports were determined by the Secretary 

22 to not be sufficiently complete pursuant to 

23 such section 5125(b); and 

24 (II) veterans who did not submit such 

25 opinions or reports. 
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1 SEC. 8. AUTOMATIC ANNUAL INCREASE IN RATES OF DIS2 ABILITY COMPENSATION AND DEPENDENCY 

3 AND INDEMNITY COMPENSATION. 

4 (a) INDEXING TO SOCIAL SECURITY INCREASES.— 

5 Section 5312 of title 38, United States Code, is amended 

6 by adding at the end the following new subsection: 

7 ‘‘(d)(1) During the nine-year period beginning on De8 cember 1, 2016, whenever there is an increase in benefit 

9 amounts payable under title II of the Social Security Act 

10 (42 U.S.C. 401 et seq.) as a result of a determination 

11 made under section 215(i) of such Act (42 U.S.C. 415(i)), 

12 the Secretary shall, effective on the date of such increase 

13 in benefit amounts, increase the dollar amounts in effect 

14 for the payment of disability compensation and depend15 ency and indemnity compensation by the Secretary, as 

16 specified in paragraph (2), as such amounts were in effect 

17 immediately before the date of such increase in benefit 

18 amounts payable under title II of the Social Security Act, 

19 by the same percentage as the percentage by which such 

20 benefit amounts are increased. 

21 ‘‘(2) The dollar amounts to be increased pursuant to 

22 paragraph (1) are the following: 

23 ‘‘(A) WARTIME DISABILITY COMPENSATION.— 

24 Each of the dollar amounts in effect under section 

25 1114 of this title. 
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1 ‘‘(B) ADDITIONAL COMPENSATION FOR DE2 PENDENTS.—Each of the dollar amounts in effect 

3 under section 1115(1) of this title. 

4 ‘‘(C) CLOTHING ALLOWANCE.—The dollar 

5 amount in effect under section 1162 of this title. 

6 ‘‘(D) DEPENDENCY AND INDEMNITY COM7 PENSATION TO SURVIVING SPOUSE.—Each of the 

8 dollar amounts in effect under subsections (a) 

9 through (d) of section 1311 of such title. 

10 ‘‘(E) DEPENDENCY AND INDEMNITY COM11 PENSATION TO CHILDREN.—Each of the dollar 

12 amounts in effect under sections 1313(a) and 1314 

13 of such title. 

14 ‘‘(3) Whenever there is an increase under paragraph 

15 (1) in amounts in effect for the payment of disability com16 pensation and dependency and indemnity compensation, 

17 the Secretary shall publish such amounts, as increased 

18 pursuant to such paragraph, in the Federal Register at 

19 the same time as the material required by section 

20 215(i)(2)(D) of the Social Security Act (42 U.S.C. 

21 415(i)(2)(D)) is published by reason of a determination 

22 under section 215(i) of such Act (42 U.S.C. 415(i)). 

23 ‘‘(4) Each dollar amount increased under paragraph 

24 (1), if not a whole dollar amount, shall be rounded to the 

25 next lower whole dollar amount. 
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1 ‘‘(5) The Secretary of Veterans Affairs may adjust 

2 administratively, consistent with the increases made under 

3 subsection (a), the rates of disability compensation pay4 able to persons under section 10 of Public Law 85–857 

5 (72 Stat. 1263) who have not received compensation 

6 under chapter 11 of this title.’’. 

7 (b) EFFECTIVE DATE.—Subsection (d) of section 

8 5312 of title 38, United States Code, as added by sub9 section (a) of this section, shall take effect on December 

10 1, 2016. 

11 SEC. 9. IMPROVEMENT OF FIDUCIARIES FOR VETERANS. 

12 (a) APPOINTMENT AND SUPERVISION.— 

13 (1) Section 5502 of title 38, United States 

14 Code, is amended to read as follows: 

15 ‘‘§ 5502. Appointment of fiduciaries 

16 ‘‘(a) APPOINTMENT.—Where it appears to the Sec17 retary that the interest of the beneficiary would be served 

18 thereby, payment of benefits under any law administered 

19 by the Secretary may be made directly to the beneficiary 

20 or to a relative or some other fiduciary for the use and 

21 benefit of the beneficiary, regardless of any legal disability 

22 on the part of the beneficiary. 

23 ‘‘(b) APPEALS.—(1) If the Secretary determines a 

24 beneficiary to be mentally incompetent for purposes of ap25 pointing a fiduciary under this chapter, the Secretary shall 
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1 provide such beneficiary with a written statement detailing 

2 the reasons for such determination. 

3 ‘‘(2) A beneficiary whom the Secretary has deter4 mined to be mentally incompetent for purposes of appoint5 ing a fiduciary under this chapter may appeal such deter6 mination. 

7 ‘‘(c) MODIFICATION.—(1) A beneficiary for whom the 

8 Secretary appoints a fiduciary under this chapter may, at 

9 any time, request the Secretary to— 

10 ‘‘(A) remove the fiduciary so appointed; and 

11 ‘‘(B) have a new fiduciary appointed. 

12 ‘‘(2) The Secretary shall comply with a request under 

13 paragraph (1) if the Secretary determines that the request 

14 is made in good faith and— 

15 ‘‘(A) the fiduciary requested to be removed re16 ceives a fee from the beneficiary and a suitable vol17 unteer fiduciary is available to assist the beneficiary; 

18 or 

19 ‘‘(B) the beneficiary provides credible informa20 tion that the fiduciary requested to be removed is— 

21 ‘‘(i) not acting in the interest of the bene22 ficiary; or 

23 ‘‘(ii) unable to effectively serve the bene24 ficiary because of an irreconcilable personality 

25 conflict or disagreement. 
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1 ‘‘(3) The Secretary shall ensure that any removal or 

2 new appointment of a fiduciary under paragraph (1) does 

3 not delay or interrupt the beneficiary’s receipt of benefits 

4 administered by the Secretary. 

5 ‘‘(d) INDEPENDENCE.—A fiduciary appointed by the 

6 Secretary shall operate independently of the Department 

7 to determine the actions that are in the interest of the 

8 beneficiary. 

9 ‘‘(e) PREDESIGNATION.—A veteran may predesignate 

10 a fiduciary by— 

11 ‘‘(1) submitting written notice to the Secretary 

12 of the predesignated fiduciary; or 

13 ‘‘(2) submitting a form provided by the Sec14 retary for such purpose. 

15 ‘‘(f) APPOINTMENT OF NON-PREDESIGNATED FIDU16 CIARY.—If a beneficiary designates an individual to serve 

17 as a fiduciary under subsection (e) and the Secretary ap18 points an individual not so designated as the fiduciary for 

19 such beneficiary, the Secretary shall notify such bene20 ficiary of— 

21 ‘‘(1) the reason why such designated individual 

22 was not appointed; and 

23 ‘‘(2) the ability of the beneficiary to modify the 

24 appointed fiduciary under subsection (c). 
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1 ‘‘(g) PRIORITY OF APPOINTMENT.—In appointing a 

2 fiduciary under this chapter, if a beneficiary does not des3 ignate a fiduciary pursuant to subsection (e), to the extent 

4 possible the Secretary shall appoint a person who is— 

5 ‘‘(1) a relative of the beneficiary; 

6 ‘‘(2) appointed as guardian of the beneficiary 

7 by a court of competent jurisdiction; or 

8 ‘‘(3) authorized to act on behalf of the bene9 ficiary under a durable power of attorney.’’. 

10 (2) CLERICAL AMENDMENT.—The table of sec11 tions at the beginning of chapter 55 of title 38, 

12 United States Code, is amended by striking the item 

13 relating to section 5502 and inserting the following: 

‘‘5502. Appointment of fiduciaries.’’. 

14 (b) SUPERVISION.— 

15 (1) IN GENERAL.—Chapter 55 of title 38, 

16 United States Code, is amended by inserting after 

17 section 5502, as amended by subsection (a)(1), the 

18 following new section: 

19 ‘‘§ 5502A. Supervision of fiduciaries 

20 ‘‘(a) COMMISSION.—(1)(A) In a case in which the 

21 Secretary determines that a commission is necessary in 

22 order to obtain the services of a fiduciary in the best inter23 ests of a beneficiary, the Secretary may authorize a fidu24 ciary appointed by the Secretary to obtain from the 

25 monthly benefits provided to the beneficiary a reasonable 
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1 commission for fiduciary services rendered, but the com2 mission for any month may not exceed the lesser of the 

3 following amounts: 

4 ‘‘(i) The amount that equals three percent of 

5 the monthly monetary benefits under laws adminis6 tered by the Secretary paid on behalf of the bene7 ficiary to the fiduciary. 

8 ‘‘(ii) $35. 

9 ‘‘(B) A commission paid under this paragraph may 

10 not be derived from any award to a beneficiary regarding 

11 back pay or retroactive benefits payments. 

12 ‘‘(C) A commission may not be authorized for a fidu13 ciary who receives any other form of remuneration or pay14 ment in connection with rendering fiduciary services for 

15 benefits under this title on behalf of the beneficiary. 

16 ‘‘(D) In accordance with section 6106 of this title, 

17 a commission may not be paid to a fiduciary if the Sec18 retary determines that the fiduciary misused any benefit 

19 payments of a beneficiary. 

20 ‘‘(E) If the Secretary determines that the fiduciary 

21 has misused any benefit or payments of a beneficiary, the 

22 Secretary may revoke the fiduciary status of the fiduciary. 

23 ‘‘(2) Where, in the opinion of the Secretary, any fidu24 ciary receiving funds on behalf of a Department bene25 ficiary is acting in such a number of cases as to make 
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1 it impracticable to conserve properly the estates or to su2 pervise the persons of the beneficiaries, the Secretary may 

3 refuse to make future payments in such cases as the Sec4 retary may deem proper. 

5 ‘‘(b) COURT.—Whenever it appears that any fidu6 ciary, in the opinion of the Secretary, is not properly exe7 cuting or has not properly executed the duties of the trust 

8 of such fiduciary or has collected or paid, or is attempting 

9 to collect or pay, fees, commissions, or allowances that are 

10 inequitable or in excess of those allowed by law for the 

11 duties performed or expenses incurred, or has failed to 

12 make such payments as may be necessary for the benefit 

13 of the ward or the dependents of the ward, then the Sec14 retary may appear, by the Secretary’s authorized attorney, 

15 in the court which has appointed such fiduciary, or in any 

16 court having original, concurrent, or appellate jurisdiction 

17 over said cause, and make proper presentation of such 

18 matters. The Secretary, in the Secretary’s discretion, may 

19 suspend payments to any such fiduciary who shall neglect 

20 or refuse, after reasonable notice, to render an account 

21 to the Secretary from time to time showing the application 

22 of such payments for the benefit of such incompetent or 

23 minor beneficiary, or who shall neglect or refuse to admin24 ister the estate according to law. The Secretary may re25 quire the fiduciary, as part of such account, to disclose 
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1 any additional financial information concerning the bene2 ficiary (except for information that is not available to the 

3 fiduciary). The Secretary may appear or intervene by the 

4 Secretary’s duly authorized attorney in any court as an 

5 interested party in any litigation instituted by the Sec6 retary or otherwise, directly affecting money paid to such 

7 fiduciary under this section. 

8 ‘‘(c) PAYMENT OF CERTAIN EXPENSES.—Authority 

9 is hereby granted for the payment of any court or other 

10 expenses incident to any investigation or court proceeding 

11 for the appointment of any fiduciary or other person for 

12 the purpose of payment of benefits payable under laws ad13 ministered by the Secretary or the removal of such fidu14 ciary and appointment of another, and of expenses in con15 nection with the administration of such benefits by such 

16 fiduciaries, or in connection with any other court pro17 ceeding hereby authorized, when such payment is author18 ized by the Secretary. 

19 ‘‘(d) TEMPORARY PAYMENT OF BENEFITS.—All or 

20 any part of any benefits the payment of which is sus21 pended or withheld under this section may, in the discre22 tion of the Secretary, be paid temporarily to the person 

23 having custody and control of the incompetent or minor 

24 beneficiary, to be used solely for the benefit of such bene25 ficiary, or, in the case of an incompetent veteran, may be 
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1 apportioned to the dependent or dependents, if any, of 

2 such veteran. Any part not so paid and any funds of a 

3 mentally incompetent or insane veteran not paid to the 

4 chief officer of the institution in which such veteran is a 

5 patient nor apportioned to the veteran’s dependent or de6 pendents may be ordered held in the Treasury to the credit 

7 of such beneficiary. All funds so held shall be disbursed 

8 under the order and in the discretion of the Secretary for 

9 the benefit of such beneficiary or the beneficiary’s depend10 ents. Any balance remaining in such fund to the credit 

11 of any beneficiary may be paid to the beneficiary if the 

12 beneficiary recovers and is found competent, or if a minor, 

13 attains majority, or otherwise to the beneficiary’s fidu14 ciary, or, in the event of the beneficiary’s death, to the 

15 beneficiary’s personal representative, except as otherwise 

16 provided by law; however, payment will not be made to 

17 the beneficiary’s personal representative if, under the law 

18 of the beneficiary’s last legal residence, the beneficiary’s 

19 estate would escheat to the State. In the event of the death 

20 of a mentally incompetent or insane veteran, all gratuitous 

21 benefits under laws administered by the Secretary depos22 ited before or after August 7, 1959, in the personal funds 

23 of patient’s trust fund on account of such veteran shall 

24 not be paid to the personal representative of such veteran, 

25 but shall be paid to the following persons living at the 
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1 time of settlement, and in the order named: The surviving 

2 spouse, the children (without regard to age or marital sta3 tus) in equal parts, and the dependent parents of such 

4 veteran, in equal parts. If any balance remains, such bal5 ance shall be deposited to the credit of the applicable cur6 rent appropriation; except that there may be paid only so 

7 much of such balance as may be necessary to reimburse 

8 a person (other than a political subdivision of the United 

9 States) who bore the expenses of last sickness or burial 

10 of the veteran for such expenses. No payment shall be 

11 made under the two preceding sentences of this subsection 

12 unless claim therefor is filed with the Secretary within five 

13 years after the death of the veteran, except that, if any 

14 person so entitled under said two sentences is under legal 

15 disability at the time of death of the veteran, such five16 year period of limitation shall run from the termination 

17 or removal of the legal disability. 

18 ‘‘(e) ESCHEATMENT.—Any funds in the hands of a 

19 fiduciary appointed by a State court or the Secretary de20 rived from benefits payable under laws administered by 

21 the Secretary, which under the law of the State wherein 

22 the beneficiary had last legal residence would escheat to 

23 the State, shall escheat to the United States and shall be 

24 returned by such fiduciary, or by the personal representa25 tive of the deceased beneficiary, less legal expenses of any 
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1 administration necessary to determine that an escheat is 

2 in order, to the Department, and shall be deposited to the 

3 credit of the applicable revolving fund, trust fund, or ap4 propriation. 

5 ‘‘(f) ASSISTANCE.—The Secretary shall provide to a 

6 fiduciary appointed under section 5502 of this title mate7 rials and tools to assist the fiduciary in carrying out the 

8 responsibilities of the fiduciary under this chapter, includ9 ing— 

10 ‘‘(1) handbooks, brochures, or other written 

11 material that explain the responsibilities of a fidu12 ciary under this chapter; 

13 ‘‘(2) tools located on an Internet website, in14 cluding forms to submit to the Secretary required 

15 information; and 

16 ‘‘(3) assistance provided by telephone.’’. 

17 (2) CLERICAL AMENDMENT.—The table of sec18 tions at the beginning of chapter 55 of title 38, 

19 United States Code, is amended by inserting after 

20 the item relating to section 5502 the following new 

21 item: 

‘‘5502A. Supervision of fiduciaries.’’. 

22 (c) DEFINITION OF FIDUCIARY.—Section 5506 of 

23 title 38, United States Code, is amended— 

24 (1) by striking ‘‘For purposes’’ and inserting 

25 ‘‘(a) For purposes’’; and 
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1 (2) by adding at the end the following new sub2 section: 

3 ‘‘(b)(1) For purposes of subsection (a), the term ‘per4 son’ includes any— 

5 ‘‘(A) State or local government agency whose 

6 mission is to carry out income maintenance, social 

7 service, or health care-related activities; 

8 ‘‘(B) any State or local government agency with 

9 fiduciary responsibilities; or 

10 ‘‘(C) any nonprofit social service agency that 

11 the Secretary determines— 

12 ‘‘(i) regularly provides services as a fidu13 ciary concurrently to five or more individuals; 

14 and 

15 ‘‘(ii) is not a creditor of any such indi16 vidual. 

17 ‘‘(2) The Secretary shall maintain a list of State or 

18 local agencies and nonprofit social service agencies under 

19 paragraph (1) that are qualified to act as a fiduciary 

20 under this chapter. In maintaining such list, the Secretary 

21 may consult the lists maintained under section 807(h) of 

22 the Social Security Act (42 U.S.C. 1007(h)).’’. 

23 (d) QUALIFICATIONS.—Section 5507 of title 38, 

24 United States Code, is amended to read as follows: 
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1 ‘‘§ 5507. Inquiry, investigations, and qualification of 

2 fiduciaries 

3 ‘‘(a) INVESTIGATION.—Any certification of a person 

4 for payment of benefits of a beneficiary to that person as 

5 such beneficiary’s fiduciary under section 5502 of this title 

6 shall be made on the basis of— 

7 ‘‘(1) an inquiry or investigation by the Sec8 retary of the fitness of that person to serve as fidu9 ciary for that beneficiary to be conducted in advance 

10 of such certification and in accordance with sub11 section (b); 

12 ‘‘(2) adequate evidence that certification of that 

13 person as fiduciary for that beneficiary is in the in14 terest of such beneficiary (as determined by the Sec15 retary under regulations); 

16 ‘‘(3) adequate evidence that the person to serve 

17 as fiduciary protects the private information of a 

18 beneficiary in accordance with subsection (d)(1); and 

19 ‘‘(4) the furnishing of any bond that may be re20 quired by the Secretary in accordance with sub21 section (f). 

22 ‘‘(b) ELEMENTS OF INVESTIGATION.—(1) In con23 ducting an inquiry or investigation of a proposed fiduciary 

24 under subsection (a)(1), the Secretary shall conduct— 
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1 ‘‘(A) a face-to-face interview with the proposed 

2 fiduciary by not later than 30 days after the date on 

3 which such inquiry or investigation begins; and 

4 ‘‘(B) a background check of the proposed fidu5 ciary to— 

6 ‘‘(i) in accordance with paragraph (2), de7 termine whether the proposed fiduciary has 

8 been convicted of a crime; and 

9 ‘‘(ii) determine whether the proposed fidu10 ciary will serve the best interest of the bene11 ficiary, including by conducting a credit check 

12 of the proposed fiduciary and checking the 

13 records under paragraph (5). 

14 ‘‘(2) The Secretary shall request information con15 cerning whether that person has been convicted of any of16 fense under Federal or State law. If that person has been 

17 convicted of such an offense, the Secretary may certify the 

18 person as a fiduciary only if the Secretary finds that the 

19 person is an appropriate person to act as fiduciary for the 

20 beneficiary concerned under the circumstances. 

21 ‘‘(3) The Secretary shall conduct the background 

22 check described in paragraph (1)(B)— 

23 ‘‘(A) each time a person is proposed to be a fi24 duciary, regardless of whether the person is serving 

25 or has served as a fiduciary; and 
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1 ‘‘(B) at no expense to the beneficiary. 

2 ‘‘(4) Each proposed fiduciary shall disclose to the 

3 Secretary the number of beneficiaries that the fiduciary 

4 acts on behalf of. 

5 ‘‘(5) The Secretary shall maintain records of any per6 son who has— 

7 ‘‘(A) previously served as a fiduciary; and 

8 ‘‘(B) had such fiduciary status revoked by the 

9 Secretary. 

10 ‘‘(6)(A) If a fiduciary appointed by the Secretary is 

11 convicted of a crime described in subparagraph (B), the 

12 Secretary shall notify the beneficiary of such conviction 

13 by not later than 14 days after the date on which the Sec14 retary learns of such conviction. 

15 ‘‘(B) A crime described in this subparagraph is a 

16 crime— 

17 ‘‘(i) for which the fiduciary is convicted while 

18 serving as a fiduciary for any person; 

19 ‘‘(ii) that is not included in a report submitted 

20 by the fiduciary under section 5509(a) of this title; 

21 and 

22 ‘‘(iii) that the Secretary determines could affect 

23 the ability of the fiduciary to act on behalf of the 

24 beneficiary. 
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1 ‘‘(c) INVESTIGATION OF CERTAIN PERSONS.—(1) In 

2 the case of a proposed fiduciary described in paragraph 

3 (2), the Secretary, in conducting an inquiry or investiga4 tion under subsection (a)(1), may carry out such inquiry 

5 or investigation on an expedited basis that may include 

6 giving priority to conducting such inquiry or investigation. 

7 Any such inquiry or investigation carried out on such an 

8 expedited basis shall be carried out under regulations pre9 scribed for purposes of this section. 

10 ‘‘(2) Paragraph (1) applies with respect to a proposed 

11 fiduciary who is— 

12 ‘‘(A) the parent (natural, adopted, or step13 parent) of a beneficiary who is a minor; 

14 ‘‘(B) the spouse or parent of an incompetent 

15 beneficiary; 

16 ‘‘(C) a person who has been appointed a fidu17 ciary of the beneficiary by a court of competent ju18 risdiction; 

19 ‘‘(D) being appointed to manage an estate 

20 where the annual amount of veterans benefits to be 

21 managed by the proposed fiduciary does not exceed 

22 $3,600, as adjusted pursuant to section 5312 of this 

23 title; or 
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1 ‘‘(E) a person who is authorized to act on be2 half of the beneficiary under a durable power of at3 torney. 

4 ‘‘(d) PROTECTION OF PRIVATE INFORMATION.—(1) 

5 A fiduciary shall take all reasonable precautions to— 

6 ‘‘(A) protect the private information of a bene7 ficiary, including personally identifiable information; 

8 and 

9 ‘‘(B) securely conducts financial transactions. 

10 ‘‘(2) A fiduciary shall notify the Secretary of any ac11 tion of the fiduciary that compromises or potentially com12 promises the private information of a beneficiary. 

13 ‘‘(e) POTENTIAL MISUSE OF FUNDS.—(1) If the Sec14 retary has reason to believe that a fiduciary may be mis15 using all or part of the benefit of a beneficiary, the Sec16 retary shall— 

17 ‘‘(A) conduct a thorough investigation to deter18 mine the veracity of such belief; and 

19 ‘‘(B) if such veracity is established, transmit to 

20 the officials described in paragraph (2) a report of 

21 such investigation. 

22 ‘‘(2) The officials described in this paragraph are the 

23 following: 

24 ‘‘(A) The Attorney General. 
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1 ‘‘(B) Each head of a Federal department or 

2 agency that pays to a fiduciary or other person ben3 efits under any law administered by such depart4 ment of agency for the use and benefit of a minor, 

5 incompetent, or other beneficiary. 

6 ‘‘(f) BOND.—In determining whether a proposed fi7 duciary is required to furnish a bond under subsection 

8 (a)(4), the Secretary shall consider— 

9 ‘‘(1) the existence of any familial or other per10 sonal relationship between the proposed fiduciary 

11 and the beneficiary; and 

12 ‘‘(2) the care the proposed fiduciary has taken 

13 to protect the interests of the beneficiary. 

14 ‘‘(g) LIST OF FIDUCIARIES.—Each regional office of 

15 the Veterans Benefits Administration shall maintain a list 

16 of the following: 

17 ‘‘(1) The name and contact information of each 

18 fiduciary, including address, telephone number, and 

19 email address. 

20 ‘‘(2) With respect to each fiduciary described in 

21 paragraph (1)— 

22 ‘‘(A) the date of the most recent back23 ground check and credit check performed by the 

24 Secretary under this section; 
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1 ‘‘(B) the date that any bond was paid 

2 under this section; 

3 ‘‘(C) the name, address, and telephone 

4 number of each beneficiary the fiduciary acts on 

5 behalf of; and 

6 ‘‘(D) the amount that the fiduciary con7 trols with respect to each beneficiary described 

8 in subparagraph (C).’’. 

9 (e) ANNUAL RECEIPT OF PAYMENTS.— 

10 (1) IN GENERAL.—Section 5509 of title 38, 

11 United States Code, is amended— 

12 (A) in subsection (a)— 

13 (i) by striking ‘‘may require a fidu14 ciary to file a’’ and inserting ‘‘shall require 

15 a fiduciary to file an annual’’; and 

16 (ii) by adding at the end the following 

17 new sentence: ‘‘The Secretary shall trans18 mit such annual report or accounting to 

19 the beneficiary and any legal guardian of 

20 such beneficiary.’’; 

21 (B) by adding at the end the following new 

22 subsections: 

23 ‘‘(c) MATTERS INCLUDED.—Except as provided by 

24 subsection (f), an annual report or accounting under sub25 section (a) shall include the following: 
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1 ‘‘(1) For each beneficiary that a fiduciary acts 

2 on behalf of— 

3 ‘‘(A) the amount of the benefits of the ben4 eficiary provided under any law administered by 

5 the Secretary accrued during the year, the 

6 amount spent, and the amount remaining; and 

7 ‘‘(B) if the fiduciary serves the beneficiary 

8 with respect to benefits not administered by the 

9 Secretary, an accounting of all sources of bene10 fits or other income the fiduciary oversees for 

11 the beneficiary. 

12 ‘‘(2) A list of events that occurred during the 

13 year covered by the report that could affect the abil14 ity of the fiduciary to act on behalf of the bene15 ficiary, including— 

16 ‘‘(A) the fiduciary being convicted of any 

17 crime; 

18 ‘‘(B) the fiduciary declaring bankruptcy; 

19 and 

20 ‘‘(C) any judgments entered against the fi21 duciary. 

22 ‘‘(d) RANDOM AUDITS.—The Secretary shall annu23 ally conduct random audits of fiduciaries who receive a 

24 commission pursuant to subsection 5502A(a)(1) of this 

25 title. 
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1 ‘‘(e) STATUS OF FIDUCIARY.—If a fiduciary includes 

2 in the annual report events described in subsection (c)(2), 

3 the Secretary may take appropriate action to adjust the 

4 status of the fiduciary as the Secretary determines appro5 priate, including by revoking the fiduciary status of the 

6 fiduciary. 

7 ‘‘(f) CAREGIVERS AND CERTAIN OTHER FIDU8 CIARIES.—(1)(A) In carrying out this section, the Sec9 retary shall ensure that a caregiver fiduciary is required 

10 only to file an annual report or accounting under sub11 section (a) with respect to the amount of the benefits of 

12 the beneficiary provided under any law administered by 

13 the Secretary— 

14 ‘‘(i) spent on— 

15 ‘‘(I) food and housing for the beneficiary; 

16 and 

17 ‘‘(II) clothing, health-related expenses, 

18 recreation, and other personal items for the 

19 beneficiary; and 

20 ‘‘(ii) saved for the beneficiary. 

21 ‘‘(B) The Secretary shall coordinate with the Under 

22 Secretary for Benefits and the Under Secretary for Health 

23 to— 
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1 ‘‘(i) minimize the frequency with which employ2 ees of the Department visit the home of a caregiver 

3 fiduciary and beneficiary; and 

4 ‘‘(ii) limit the extent of supervision by such 

5 Under Secretaries with respect to such a fiduciary 

6 and beneficiary. 

7 ‘‘(C) In this paragraph, the term ‘caregiver fiduciary’ 

8 means a fiduciary who— 

9 ‘‘(i) in addition to acting as a fiduciary for a 

10 beneficiary, is approved by the Secretary to be a 

11 provider of personal care services for the beneficiary 

12 under paragraph (3)(A)(i) of section 1720G(a) of 

13 this title; 

14 ‘‘(ii) in carrying out such care services to such 

15 beneficiary, has undergone not less than four home 

16 visits under paragraph (9)(A) of such section; and 

17 ‘‘(iii) has not been required by the Secretary to 

18 take corrective action pursuant to paragraph (9)(C) 

19 of such section. 

20 ‘‘(2) In carrying out this section, the Secretary may 

21 adjust the matters required under an annual report or ac22 counting under subsection (a) with respect to a fiduciary 

23 whom the Secretary determines to have effectively pro24 tected the interests of the beneficiary over a sustained pe25 riod.’’; and 
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1 (C) by striking the section heading and in2 serting the following: ‘‘Annual reports and 

3 accountings of fiduciaries’’. 

4 (2) CLERICAL AMENDMENT.—The table of sec5 tions at the beginning of chapter 55 of title 38, 

6 United States Code, is amended by striking the item 

7 relating to section 5509 and inserting the following 

8 new item: 

‘‘5509. Annual reports and accountings of fiduciaries.’’. 

9 (f) REPAYMENT OF MISUSED BENEFITS.—Section 

10 6107(a)(2)(C) of title 38, United States Code, is amended 

11 by inserting before the period the following: ‘‘, including 

12 by the Secretary not acting in accordance with section 

13 5507 of this title’’. 

14 (g) ANNUAL REPORTS.—Section 5510 of title 38, 

15 United States Code, is amended by striking ‘‘The Sec16 retary shall include in the Annual Benefits Report of the 

17 Veterans Benefits Administration or the Secretary’s An18 nual Performance and Accountability Report’’ and insert19 ing ‘‘Not later than July 1 of each year, the Secretary 

20 shall submit to the Committees on Veterans’ Affairs of 

21 the House of Representatives and the Senate a separate 

22 report containing’’. 

23 (h) REPORT.—Not later than two years after the date 

24 of the enactment of this Act, the Secretary of Veterans 

25 Affairs shall submit to the Committee on Veterans’ Affairs 
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1 of the Senate and the Committee on Veterans’ Affairs of 

2 the House of Representatives a comprehensive report on 

3 the implementation of the amendments made by this Act, 

4 including— 

5 (1) detailed information on the establishment of 

6 new policies and procedures pursuant to such 

7 amendments and training provided on such policies 

8 and procedures; and 

9 (2) a discussion of whether the Secretary 

10 should provide fiduciaries with standardized finan11 cial software to simplify reporting requirements. 

12 (i) EFFECTIVE DATE.—The amendments made by 

13 this section shall take effect on the date that is one year 

14 after the date of the enactment of this Act. 

15 SEC. 10. BOARD OF VETERANS’ APPEALS VIDEO HEARINGS. 

16 Section 7107 of title 38, United States Code, is 

17 amended— 

18 (1) in subsection (d), by amending paragraph 

19 (1) to read as follows: 

20 ‘‘(1)(A) Upon request for a hearing, the Board shall 

21 determine, for purposes of scheduling the hearing for the 

22 earliest possible date, whether a hearing before the Board 

23 will be held at its principal location or at a facility of the 

24 Department or other appropriate Federal facility located 

25 within the area served by a regional office of the Depart-
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1 ment. The Board shall also determine whether to provide 

2 a hearing through the use of the facilities and equipment 

3 described in subsection (e)(1) or by the appellant person4 ally appearing before a Board member or panel. 

5 ‘‘(B) The Board shall notify the appellant of the de6 terminations of the location and type of hearing made 

7 under subparagraph (A). Upon notification, the appellant 

8 may request a different location or type of hearing as de9 scribed in such subparagraph. If so requested, the Board 

10 shall grant such request and ensure that the hearing is 

11 scheduled at the earliest possible date without any undue 

12 delay or other prejudice to the appellant.’’; and 

13 (2) in subsection (e), by amending paragraph 

14 (2) to read as follows: 

15 ‘‘(2) Any hearing provided through the use of the fa16 cilities and equipment described in paragraph (1) shall be 

17 conducted in the same manner as, and shall be considered 

18 the equivalent of, a personal hearing.’’. 

19 SEC. 11. IMPROVEMENTS TO AUTHORITY FOR PERFORM20 ANCE OF MEDICAL DISABILITIES EXAMINA21 TIONS BY CONTRACT PHYSICIANS. 

22 (a) EXTENSION OF TEMPORARY AUTHORITY.—Sub23 section (c) of section 704 of the Veterans Benefits Act 

24 of 2003 (38 U.S.C. 5101 note) is amended by striking 
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1 ‘‘December 31, 2015’’ and inserting ‘‘December 31, 

2 2017’’. 

3 (b) LICENSURE OF CONTRACT PHYSICIANS.— 

4 (1) TEMPORARY AUTHORITY.—Such section 

5 704 is further amended— 

6 (A) by redesignating subsection (d) as sub7 section (e); and 

8 (B) by inserting after subsection (c) the 

9 following new subsection (d): 

10 ‘‘(d) LICENSURE OF CONTRACT PHYSICIANS.— 

11 ‘‘(1) IN GENERAL.—Notwithstanding any law 

12 regarding the licensure of physicians, a physician de13 scribed in paragraph (2) may conduct an examina14 tion pursuant to a contract entered into under sub15 section (b) at any location in any State, the District 

16 of Columbia, or a Commonwealth, territory, or pos17 session of the United States, so long as the examina18 tion is within the scope of the authorized duties 

19 under such contract. 

20 ‘‘(2) PHYSICIAN DESCRIBED.—A physician de21 scribed in this paragraph is a physician who— 

22 ‘‘(A) has a current unrestricted license to 

23 practice the health care profession of the physi24 cian; 
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1 ‘‘(B) is not barred from practicing such 

2 health care profession in any State, the District 

3 of Columbia, or a Commonwealth, territory, or 

4 possession of the United States; and 

5 ‘‘(C) is performing authorized duties for 

6 the Department of Veterans Affairs pursuant to 

7 a contract entered into under subsection (b).’’. 

8 (2) PILOT PROGRAM.—Section 504 of the Vet9 erans’ Benefits Improvement Act of 1996 (38 

10 U.S.C. 5101 note) is amended— 

11 (A) by redesignating subsections (c) and 

12 (d) as subsections (d) and (e), respectively; and 

13 (B) by inserting after subsection (b) the 

14 following new subsection (c): 

15 ‘‘(c) LICENSURE OF CONTRACT PHYSICIANS.— 

16 ‘‘(1) IN GENERAL.—Notwithstanding any law 

17 regarding the licensure of physicians, a physician de18 scribed in paragraph (2) may conduct an examina19 tion pursuant to a contract entered into under sub20 section (a) at any location in any State, the District 

21 of Columbia, or a Commonwealth, territory, or pos22 session of the United States, so long as the examina23 tion is within the scope of the authorized duties 

24 under such contract. 
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1 ‘‘(2) PHYSICIAN DESCRIBED.—A physician de2 scribed in this paragraph is a physician who— 

3 ‘‘(A) has a current unrestricted license to 

4 practice the health care profession of the physi5 cian; 

6 ‘‘(B) is not barred from practicing such 

7 health care profession in any State, the District 

8 of Columbia, or a Commonwealth, territory, or 

9 possession of the United States; and 

10 ‘‘(C) is performing authorized duties for 

11 the Department of Veterans Affairs pursuant to 

12 a contract entered into under subsection (a).’’. 

13 SEC. 12. PILOT PROGRAM ON FULLY DEVELOPED APPEALS. 

14 (a) IN GENERAL.—The Secretary of Veterans Affairs 

15 shall carry out a pilot program to provide the option of 

16 an alternative appeals process that shall more quickly de17 termine such appeals in accordance with this section. 

18 (b) ELECTION.— 

19 (1) FILING.—In accordance with paragraph 

20 (2), a claimant may elect to file a fully developed ap21 peal under the pilot program under subsection (a) by 

22 filing with the Secretary the following: 

23 (A) The notice of disagreement under 

24 chapter 71 of title 38, United States Code, 

25 along with the written election of the claimant 
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1 to have the appeal determined under the pilot 

2 program. 

3 (B) All evidence that the claimant believes 

4 is needed for the appeal as of the date of the 

5 filing. 

6 (C) A statement of the argument in sup7 port of the claim, if any. 

8 (2) TIMING.—A claimant shall make an election 

9 under paragraph (1) as part of the notice of dis10 agreement filed by the claimant in accordance with 

11 paragraph (1)(A). 

12 (3) REVERSION.— 

13 (A) At any time, a claimant who makes an 

14 election under paragraph (1) may elect to revert 

15 to the standard appeals process. Such a rever16 sion shall be final. 

17 (B) A claimant described in subparagraph 

18 (A), or a claimant who makes an election under 

19 paragraph (1) but is later determined to be in20 eligible for the pilot program under subsection 

21 (a), shall revert to the standard appeals process 

22 without any penalty to the claimant other than 

23 the loss of the docket number associated with 

24 the fully developed appeal. 
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1 (4) OUTREACH.—In providing claimants with 

2 notices of the determination of a claim during the 

3 period in which the pilot program under subsection 

4 (a) is carried out, the Secretary shall conduct out5 reach as follows: 

6 (A) The Secretary shall provide to the 

7 claimant (and to the representative of record of 

8 the claimant, if any) information regarding— 

9 (i) the pilot program, including the 

10 advantages and disadvantages of the pro11 gram; 

12 (ii) how to make an election under 

13 paragraph (1); 

14 (iii) the limitation on the use of new 

15 evidence described in paragraph (3) of sub16 section (c) and the development of infor17 mation under paragraph (4) of such sub18 section; and 

19 (iv) the ability of the claimant to seek 

20 advice and education regarding such proc21 ess from veterans service organizations, at22 torneys, and claims agents recognized 

23 under chapter 59 of title 38, United States 

24 Code. 
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1 (B) The Secretary shall collaborate, part2 ner with, and give weight to the advice of the 

3 three veterans service organizations with the 

4 most members to publish on the Internet 

5 website of the Department of Veterans Affairs 

6 an online tutorial explaining the advantages and 

7 disadvantages of the pilot program. 

8 (c) TREATMENT BY DEPARTMENT AND BOARD.— 

9 (1) PROCESS.—Upon the election of a claimant 

10 to file a fully developed appeal pursuant to sub11 section (b)(1), the Secretary shall— 

12 (A) not provide the claimant with a state13 ment of the case nor require the claimant to file 

14 a substantive appeal; and 

15 (B) transfer jurisdiction over the fully de16 veloped appeal directly to the Board of Vet17 erans’ Appeals. 

18 (2) DOCKET.— 

19 (A) The Board of Veterans’ Appeals 

20 shall— 

21 (i) maintain fully developed appeals 

22 on a separate docket than standard ap23 peals; 

24 (ii) decide fully developed appeals in 

25 the order that the fully developed appeals 
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1 are received on the fully developed appeal 

2 docket; 

3 (iii) except as provided by subpara4 graph (B), decide not more than one fully 

5 developed appeal for each four standard 

6 appeals decided; and 

7 (iv) to the extent practicable, decide 

8 each fully developed appeal by the date 

9 that is one year following the date on 

10 which the claimant files the notice of dis11 agreement. 

12 (B) Beginning one year after the date on 

13 which the pilot program under subsection (a) 

14 commences, the Board may adjust the number 

15 of standard appeals decided for each fully devel16 oped appeal under subparagraph (A)(iii) if the 

17 Board determines that such adjustment is fair 

18 for both standard appeals and fully developed 

19 appeals. 

20 (3) LIMITATION ON USE OF NEW EVIDENCE.— 

21 (A) Except as provided by subparagraphs 

22 (B) and (C)— 

23 (i) a claimant may not submit or iden24 tify to the Board of Veterans’ Appeals any 

25 new evidence relating to a fully developed 
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1 appeal after filing such appeal unless the 

2 claimant reverts to the standard appeals 

3 process pursuant to subsection (b)(3); and 

4 (ii) if a claimant submits or identifies 

5 any such new evidence, such submission or 

6 identification shall be deemed to be an 

7 election to make such a reversion pursuant 

8 to subsection (b)(3). 

9 (B) Subparagraph (A) shall not apply to 

10 evidence developed pursuant to paragraphs (4) 

11 and (5). The Board shall consider such evidence 

12 in the first instance without consideration by 

13 the Veterans Benefits Administration. 

14 (C) The representative of record of a 

15 claimant for appeals purposes, if any, shall be 

16 provided an opportunity to review the fully de17 veloped appeal of the claimant and submit any 

18 additional arguments or evidence that the rep19 resentative determines necessary during a pe20 riod specified by the Board for purposes of this 

21 subparagraph. 

22 (4) PROHIBITION ON REMAND FOR ADDITIONAL

23 DEVELOPMENT.—If the Board of Veterans’ Appeals 

24 determines that a fully developed appeal requires 
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1 Federal records, independent medical opinions, or 

2 new medical examinations, the Board shall— 

3 (A) in accordance with paragraph (5), take 

4 such actions as may be necessary to develop 

5 such records, opinions, or examinations in ac6 cordance with section 5103A of title 38, United 

7 States Code; 

8 (B) retain jurisdiction of the fully devel9 oped appeal without requiring a determination 

10 by the Veterans Benefits Administration based 

11 on such records, opinions, or examinations; 

12 (C) ensure the claimant, and the represent13 ative of record of a claimant, if any, receives a 

14 copy of such records, opinions, or examinations; 

15 and 

16 (D) provide the claimant a period of 90 

17 days after the date of mailing such records, 

18 opinions, or examinations during which the 

19 claimant may provide the Board any additional 

20 evidence without requiring the claimant to make 

21 a reversion pursuant to subsection (b)(3). 

22 (5) DEVELOPMENT UNIT.— 

23 (A) The Board of Veterans’ Appeals shall 

24 establish an office to develop Federal records, 

25 independent medical opinions, and new medical 
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1 examinations pursuant to paragraph (4)(A) 

2 that the Board determines necessary to decide 

3 a fully developed appeal. 

4 (B) The Secretary shall— 

5 (i) ensure that the Veterans Benefits 

6 Administration cooperates with the Board 

7 of Veterans’ Appeals in carrying out sub8 paragraph (A); and 

9 (ii) transfer employees of the Veterans 

10 Benefits Administration who, prior to the 

11 enactment of this Act, were responsible for 

12 processing claims remanded by the Board 

13 of Veterans’ Appeals to positions within 

14 the office of the Board established under 

15 subparagraph (A) in a number the Sec16 retary determines sufficient to carry out 

17 such subparagraph. 

18 (6) HEARINGS.—Notwithstanding section 7107 

19 of title 38, United States Code, the Secretary may 

20 not provide hearings with respect to fully developed 

21 appeals. If a claimant requests to hold a hearing 

22 pursuant to such section 7107, such request shall be 

23 deemed to be an election to revert to the standard 

24 appeals process pursuant to subsection (b)(3). 
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1 (d) DURATION; APPLICATION.—The Secretary shall 

2 carry out the pilot program under subsection (a) for a five3 year period beginning one year after the date of the enact4 ment of this Act. This section shall apply only to fully 

5 developed appeals that are filed during such period. 

6 (e) REPORTS.—During each year in which the pilot 

7 program under subsection (a) is carried out, the Secretary 

8 shall submit to the Committees on Veterans’ Affairs of 

9 the House of Representatives and the Senate a report on 

10 the pilot program. The first such report shall be submitted 

11 by not later than 180 days after the date on which the 

12 pilot program commences. Each report shall include the 

13 following: 

14 (1) For the period covered by the report— 

15 (A) the number of claimants who filed a 

16 fully developed appeal under the pilot program; 

17 (B) the average processing time for each 

18 such appeal, measured by each phase of the ap19 peal, and, if the processing time for appeals ex20 ceed one year, the reasons for such processing 

21 time; 

22 (C) a summary of reasons for which the 

23 development of evidence was required under 

24 subsection (c)(5); 
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1 (D) the number of issues decided, listed by 

2 the disposition of the issue; 

3 (E) of the number identified in subpara4 graph (D), the number of issues for which evi5 dence was not so developed, listed by the dis6 position of the issue; 

7 (F) of the number of fully developed ap8 peals decided by the Board of Veterans’ Ap9 peals, the number of cases from each agency of 

10 original jurisdiction, listed by the disposition of 

11 the issue; 

12 (G) the number of fully developed appeals 

13 appealed to the Court of Appeals for Veterans 

14 Claims, listed by the disposition of the case; 

15 (H) the number of reversions made under 

16 subsection (b)(3); and 

17 (I) any reasons for why a claimant was de18 termined to be ineligible to participate in the 

19 pilot program. 

20 (2) A review, made in conjunction with veterans 

21 service organizations, of the efforts of the Secretary 

22 to provide clear rating decisions and improve dis23 ability rating notification letters, including with re24 spect to— 
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1 (A) the opinions of veterans service organi2 zations regarding such efforts; and 

3 (B) how the pilot program improves such 

4 efforts. 

5 (3) A recommendation for any changes to im6 prove the pilot program. 

7 (4) An assessment of the feasibility and advis8 ability of expanding the pilot program. 

9 (f) REGULATIONS.—Not later than one day after the 

10 date of the enactment of this Act, the Secretary shall pub11 lish interim guidance on the pilot program under sub12 section (a). Not later than 90 days after such date of en13 actment, the Secretary shall prescribe regulations to carry 

14 out such pilot program. 

15 (g) DEFINITIONS.—In this section: 

16 (1) The term ‘‘claimant’’ has the meaning given 

17 that term in section 5100 of title 38, United States 

18 Code. 

19 (2) The term ‘‘compensation’’ has the meaning 

20 given that term in section 101 of title 38, United 

21 States Code. 

22 (3) The term ‘‘fully developed appeal’’ means 

23 an appeal of a claim for disability compensation that 

24 is— 
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1 (A) filed by a claimant in accordance with 

2 subsection (b)(1); and 

3 (B) considered in accordance with this sec4 tion. 

5 (4) The term ‘‘standard appeal’’ means an ap6 peal of a claim for disability compensation that is 

7 not a fully developed appeal. 

8 SEC. 13. DEADLINE FOR CERTIFICATION OF APPEALS 

9 FORMS BY REGIONAL OFFICES OF THE DE10 PARTMENT OF VETERANS AFFAIRS. 

11 The Secretary of Veterans Affairs shall take such 

12 steps as may be necessary to ensure that when a regional 

13 office of the Department of Veterans Affairs receives a 

14 form known as ‘‘VA Form 9, Appeal to Board of Veterans’ 

15 Appeals’’, or any successor form, submitted by a veteran 

16 to appeal a decision relating to a claim, the regional office 

17 certifies such form by not later than one year after the 

18 date of the receipt of the form. 

19 SEC. 14. EVALUATION OF BACKLOG OF DISABILITY CLAIMS 

20 AND APPEALS OF CLAIMS OF DEPARTMENT 

21 OF VETERANS AFFAIRS. 

22 (a) IN GENERAL.—There is established a commission 

23 or task force to evaluate the backlog of claims within the 

24 Department of Veterans Affairs and the appeals process 

25 of claims. 
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1 (b) STUDIES.— 

2 (1) BACKLOG STUDY.— 

3 (A) IN GENERAL.—The Commission or 

4 Task Force, acting through the subcommittee 

5 described in subsection (d)(2)(A), shall carry 

6 out a study on the backlog of claims, including 

7 the current process the Secretary of Veterans 

8 Affairs uses to evaluate claims and appeals and 

9 the laws and regulations applicable to such 

10 claims and appeals. Such study shall be a com11 prehensive evaluation and assessment of the 

12 backlog of claims, an analysis of possible im13 provements to the procedures used to process 

14 such claims, and any related issues that the 

15 Commission or Task Force considers relevant. 

16 (B) MATTERS INCLUDED.—In carrying out 

17 the study under subparagraph (A), the Com18 mission or Task Force shall examine the fol19 lowing: 

20 (i) The backlog of claims, including 

21 an analysis of— 

22 (I) the most effective means to 

23 quickly and accurately resolve all 

24 claims pending as of the date of the 

25 study; and 
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1 (II) with respect to the Depart2 ment, the annual funding, number of 

3 full-time employees, workload manage4 ment practices, and the progress, as 

5 of the date of the study, of the stra6 tegic plan. 

7 (ii) Possible improvements to the 

8 claims process, including an evaluation and 

9 recommendations with respect to whether 

10 substantive and structural changes to the 

11 overall claims process are required. 

12 (iii) In carrying out the evaluation 

13 and recommendations under subparagraph 

14 (B), an examination of— 

15 (I) options that make no major 

16 substantive changes to the claims 

17 process; 

18 (II) options that maintain the 

19 process but make minor changes; and 

20 (III) options that make broad 

21 changes to the process. 

22 (2) APPEALS PROCESS STUDY.— 

23 (A) IN GENERAL.—The Commission or 

24 Task Force, acting through the subcommittee 

25 described in subsection (d)(2)(B), shall carry 
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1 out a study on the anticipated increase of ap2 peals of claims, including the current appeals 

3 process and the laws and regulations applicable 

4 to such appeals. Such study shall be a com5 prehensive evaluation and assessment of such 

6 anticipated increase of appeals claims, an anal7 ysis of possible improvements to the procedures 

8 used to process such appeals, and any related 

9 issues that the Commission or Task Force con10 siders relevant. 

11 (B) MATTERS INCLUDED.—In carrying out 

12 the study under subparagraph (A), the Com13 mission or Task Force shall examine the fol14 lowing: 

15 (i) The anticipated surge in appeals of 

16 claims, including an analysis of— 

17 (I) the most effective means to 

18 quickly and accurately resolve pending 

19 appeals and future appeals; 

20 (II) with respect to both the 

21 Board and the Court of Appeals for 

22 Veterans Claims, the annual funding, 

23 number of full-time employees, work24 load management practices, and the 
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1 progress, as of the date of the study, 

2 of the strategic plan; and 

3 (III) the efficiency, effectiveness, 

4 and utility of the Veterans Benefits 

5 Management System with respect to 

6 appeals operations, including an iden7 tification of key changes that may 

8 need to be implemented to such sys9 tem. 

10 (ii) Possible improvements to the ap11 peals process, including an evaluation and 

12 recommendations with respect to whether 

13 substantive and structural changes to the 

14 overall appeals process are required. 

15 (iii) In carrying out the evaluation 

16 and recommendations under clause (ii), an 

17 examination of— 

18 (I) options that make no major 

19 substantive changes to the appeals 

20 process; 

21 (II) options that maintain the 

22 process but make minor changes; 

23 (III) options that make broad 

24 changes to the process; 
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1 (IV) the necessity of the multi2 tiered levels of appeals at the regional 

3 office level, including filing a notice of 

4 disagreement, receipt of a statement 

5 of the case, supplemental statement of 

6 the case (if applicable), and sub7 stantive appeal (VA Form 9); 

8 (V) the role of the Board and the 

9 Appeals Management Center, includ10 ing— 

11 (aa) the effectiveness of the 

12 workload management of the 

13 Board and the Center; 

14 (bb) whether the Board and 

15 Center should be regionalized or 

16 maintain the centralized struc17 ture in the District of Columbia; 

18 (cc) whether Board members 

19 should be required to pass the 

20 administrative law judges certifi21 cation examination; and 

22 (dd) whether the Board 

23 should continue to require de 

24 novo review of appeals; and 
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1 (VI) the role of the Court of Ap2 peals for Veterans Claims and the 

3 United States Court of Appeals for 

4 the Federal Circuit, including— 

5 (aa) the continued effective6 ness and necessity of a multi7 tiered structure of judicial re8 view; 

9 (bb) whether the Court of 

10 Appeals for Veterans Claims 

11 should have Article I or Article 

12 III status; 

13 (cc) expansion of either the 

14 Court of Appeals for Veterans 

15 Claims or the United States 

16 Court of Appeals for the Federal 

17 Circuit jurisdiction, including by 

18 allowing such courts to hear class 

19 action lawsuits with respect to 

20 claims; and 

21 (dd) the possibility of ex22 panding judicial review of claims 

23 to all Federal circuit courts of 

24 appeals or allowing judicial re25 view beyond the Court of Appeals 
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1 for Veterans Claims only by the 

2 Supreme Court. 

3 (3) CONSIDERATION.—In carrying out the stud4 ies under paragraph (1)(A) and (2)(A) and making 

5 any recommendations under this section, the Com6 mission or Task Force shall consider the following: 

7 (A) The interests of veterans, including 

8 with respect to accuracy, fairness, and trans9 parency in the claims process of the Depart10 ment. 

11 (B) The values and requirements of the 

12 Constitution, including with respect to compli13 ance with procedural and substantive due proc14 ess. 

15 (C) The public interest, including with re16 spect to the responsible use of available re17 sources. 

18 (D) With respect to the study conducted 

19 under paragraph (1)(A), the importance of the 

20 claimant friendly, nonadversarial nature of the 

21 claims process. 

22 (E) With respect to the study conducted 

23 under paragraph (2)(A), the importance of an 

24 appeals process that is efficient and easily un25 derstandable by a claimant. 
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1 (4) ROLE OF SECRETARY, CHAIRMAN OF THE

2 BOARD, AND CHIEF JUDGE.— 

3 (A) INFORMATION.—In carrying out each 

4 study under paragraph (1)(A) and (2)(A), at 

5 times that the Commission or Task Force de6 termines appropriate, the Commission or Task 

7 Force shall submit to the Secretary of Veterans 

8 Affairs, the Chairman of the Board, and the 

9 Chief Judge of the Court of Appeals for Vet10 erans Claims, as the case may be, information 

11 with respect to remedies and solutions that the 

12 Commission or Task Force identifies pursuant 

13 to such a study. 

14 (B) IMPLEMENTATION.—The Secretary, 

15 the Chairman of the Board, and the Chief 

16 Judge shall each— 

17 (i) fully consider the remedies and so18 lutions submitted to the Secretary, the 

19 Chairman, or the Chief Judge, as the case 

20 may be, under subparagraph (A); 

21 (ii) implement such remedies and so22 lutions as the Secretary, the Chairman, or 

23 the Chief Judge, respectively, determines 

24 appropriate; and 
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1 (iii) submit to Congress justification 

2 for failing to implement any such remedy 

3 or solution. 

4 (C) PLAN.—The Commission or Task 

5 Force shall submit to the Secretary, the Chair6 man of the Board, and the Chief Judge a fea7 sible, timely, and cost-effective plan to eliminate 

8 the backlog of appeals of claims based on the 

9 remedies and solutions identified pursuant to 

10 the study under paragraph (2)(A) and the in11 formation submitted under subparagraph (A). 

12 (c) COMPREHENSIVE REPORTS.— 

13 (1) INITIAL COMPREHENSIVE REPORT.—Not 

14 later than 60 days after the date on which the Com15 mission or Task Force first meets, the Commission 

16 or Task Force shall submit to the President and 

17 Congress an initial comprehensive report on the 

18 studies conducted under paragraphs (1)(A) and 

19 (2)(A) of subsection (b), including— 

20 (A) the findings of the causes of the back21 log of claims; 

22 (B) a proposed plan to handle the antici23 pated surge in appeals of claims; and 

24 (C) the level of cooperation the Commis25 sion or Task Force has received from the Sec-
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1 retary and the heads of other departments or 

2 agencies of the Federal Government. 

3 (2) INTERIM COMPREHENSIVE REPORTS.—Not 

4 later than 90 days after the date on which the Com5 mission or Task Force first meets, and each 30-day 

6 period thereafter ending on the date on which the 

7 Commission or Task Force submits the final com8 prehensive report under paragraph (3), the Commis9 sion or Task Force shall submit to the President 

10 and Congress a comprehensive report on— 

11 (A) the progress of the Secretary with re12 spect to implementing solutions to expedite the 

13 elimination of the backlog of claims pursuant to 

14 subsection (b)(4)(B)(ii); 

15 (B) the progress of the Secretary, the 

16 Chairman of the Board, and the Chief Judge of 

17 the Court of Appeals for Veterans Claims with 

18 respect to implementing solutions to complete 

19 appeals of claims in a timely manner in a time20 ly manner pursuant to such subsection; and 

21 (C) the level of cooperation the Commis22 sion or Task Force has received from the Sec23 retary and the heads of other departments or 

24 agencies of the Federal Government. 
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1 (3) FINAL COMPREHENSIVE REPORT.—Not 

2 later than 180 days after the date on which the 

3 Commission or Task Force first meets, the Commis4 sion or Task Force shall submit to the President 

5 and Congress a comprehensive report on the fol6 lowing: 

7 (A) With respect to the study conducted 

8 under subsection (b)(1)(A)— 

9 (i) The findings, conclusions, and rec10 ommendations of the Commission or Task 

11 Force with respect to the matters referred 

12 to in such subsection. 

13 (ii) The recommendations of the Com14 mission or Task Force for revising and im15 proving the backlog of claims and the pro16 cedures used to process claims. 

17 (iii) The progress of the Secretary 

18 with respect to implementing solutions to 

19 expedite the elimination of the backlog of 

20 claims pursuant to subsection (b)(4)(B)(ii). 

21 (iv) Other information and rec22 ommendations with respect to claims as 

23 the Commission or Task Force considers 

24 appropriate. 
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1 (B) With respect to the study conducted 

2 under subsection (b)(2)(A)— 

3 (i) The findings, conclusions, and rec4 ommendations of the Commission or Task 

5 Force with respect to the matters referred 

6 to in such subsection. 

7 (ii) The recommendations of the Com8 mission or Task Force for revising and im9 proving the appeals process; 

10 (iii) The information described in sub11 section (b)(4)(A). 

12 (iv) The feasible, timely, and cost ef13 fective plan described in subsection 

14 (b)(4)(C). 

15 (v) The progress of the Secretary, the 

16 Chairman of the Board, and the Chief 

17 Judge of the Court of Appeals for Vet18 erans Claims with respect to implementing 

19 solutions to provide timely appeals of 

20 claims. 

21 (vi) Other information and rec22 ommendations with respect to the appeals 

23 process as the Commission or Task Force 

24 considers appropriate. 

25 (d) MEMBERSHIP.— 
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1 (1) NUMBER AND APPOINTMENT.—The Com2 mission or Task Force shall be composed of 15 

3 members, appointed as follows: 

4 (A) Two members appointed by the Speak5 er of the House of Representatives, one of 

6 whom shall be designated to serve upon the 

7 Subcommittee on the Backlog of Claims and 

8 one of whom shall be designated to serve upon 

9 the Subcommittee on Appeals. 

10 (B) Two members appointed by the minor11 ity leader of the House of Representatives, one 

12 of whom shall be designated to serve upon the 

13 Subcommittee on the Backlog of Claims and 

14 one of whom shall be designated to serve upon 

15 the Subcommittee on Appeals. 

16 (C) Two members appointed by the major17 ity leader of the Senate, one of whom shall be 

18 designated to serve upon the Subcommittee on 

19 the Backlog of Claims and one of whom shall 

20 be designated to serve upon the Subcommittee 

21 on Appeals. 

22 (D) Two members appointed by the minor23 ity leader of the Senate, one of whom shall be 

24 designated to serve upon the Subcommittee on 

25 the Backlog of Claims and one of whom shall 
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1 be designated to serve upon the Subcommittee 

2 on Appeals. 

3 (E) Three members appointed by the 

4 President, two of whom shall be designated to 

5 serve upon the Subcommittee on the Backlog of 

6 Claims and one of whom shall be designated to 

7 serve upon the Subcommittee on Appeals. 

8 (F) One member appointed by the Sec9 retary of Defense, whom shall be designated to 

10 serve upon the Subcommittee on the Backlog of 

11 Claims. 

12 (G) Two members appointed by the Sec13 retary of Veterans Affairs, one of whom shall be 

14 designated to serve upon the Subcommittee on 

15 the Backlog of Claims and one of whom shall 

16 be designated to serve upon the Subcommittee 

17 on Appeals. 

18 (H) One member appointed by the Chief 

19 Judge of the Court of Appeals for Veterans 

20 Claims, whom shall be designated to serve upon 

21 the Subcommittee on Appeals. 

22 (2) SUBCOMMITTEES.—The Commission or 

23 Task Force shall have two subcommittees as follows: 
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1 (A) A Subcommittee on the Backlog of 

2 Claims consisting of the eight members des3 ignated in accordance with paragraph (1). 

4 (B) A Subcommittee on Appeals consisting 

5 of the seven members designated in accordance 

6 with paragraph (1). 

7 (3) QUALIFICATIONS.—Each member appointed 

8 under paragraph (1) shall be appointed based on the 

9 experience of the member as a veteran or on the 

10 subject matter expertise or other relevant experience 

11 of the member. 

12 (4) ADVISORS.— 

13 (A) IN GENERAL.—In addition to the 15 

14 members appointed under paragraph (1), the 

15 Commission or Task Force shall— 

16 (i) have five nonvoting, nonmember 

17 advisors, appointed by a majority of the 

18 Commission or Task Force, each from a 

19 different organization that represents the 

20 interests of veterans; and 

21 (ii) seek advice from experts from 

22 nongovernmental organizations (including 

23 veterans service organizations and military 

24 organizations), the Internet technology in25 dustry, and the insurance industry. 
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1 (B) ADVICE.—Individuals described in 

2 clause (i) and (ii) of subparagraph (A) shall 

3 provide advice to both subcommittees described 

4 in paragraph (2). 

5 (5) CHAIRMAN.—The President shall designate 

6 a member of the Commission or Task Force who is 

7 appointed by the President and designated to serve 

8 upon the Subcommittee on the Backlog of Claims to 

9 serve as the chairman of the Commission or Task 

10 Force. The chairman may designate a member to 

11 serve as the chairman of the Subcommittee on the 

12 Backlog of Claims and a member to serve as the 

13 chairman of the Subcommittee on Appeals to chair 

14 such subcommittees as the designee of the chairman 

15 of the Commission or Task Force. 

16 (6) PERIOD OF APPOINTMENT.—Members of 

17 the Commission or Task Force shall be appointed 

18 for the life of the Commission or Task Force. A va19 cancy shall not affect its powers. 

20 (7) VACANCY.—A vacancy on the Commission 

21 or Task Force shall be filled in the manner in which 

22 the original appointment was made. 

23 (8) APPOINTMENT DEADLINE.—The appoint24 ment of members of the Commission or Task Force 

25 established in this section shall be made not later 
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1 than 15 days after the date of the enactment of this 

2 Act. 

3 (e) MEETINGS.— 

4 (1) INITIAL MEETING.—The Commission or 

5 Task Force shall hold its first meeting not later 

6 than 15 days after the date on which a majority of 

7 the members are appointed. 

8 (2) MEETINGS.—The Commission or Task 

9 Force shall meet at the call of the chairman. 

10 (3) QUORUM.—A majority of the members of 

11 the Commission or Task Force shall constitute a 

12 quorum, but a lesser number may hold hearings. 

13 (f) POWERS OF THE COMMISSION OR TASK FORCE.— 

14 (1) HEARINGS.—The Commission or Task 

15 Force may hold such hearings, sit and act at such 

16 times and places, take such testimony, and receive 

17 such evidence as the Commission or Task Force con18 siders advisable to carry out the purposes of this 

19 section. 

20 (2) INFORMATION FROM FEDERAL AGENCIES.— 

21 The Commission or Task Force may secure directly 

22 from any department or agency of the Federal Gov23 ernment such information as the Commission or 

24 Task Force considers necessary to carry out the pro25 visions of this section. Upon request of the chair-
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1 man, the head of such department or agency shall 

2 furnish such information to the Commission or Task 

3 Force. 

4 (3) POSTAL SERVICES.—The Commission or 

5 Task Force may use the United States mails in the 

6 same manner and under the same conditions as 

7 other departments and agencies of the Federal Gov8 ernment. 

9 (4) GIFTS.—The Commission or Task Force 

10 may accept, use, and dispose of gifts or donations of 

11 service or property. 

12 (g) PERSONNEL MATTERS.— 

13 (1) COMPENSATION OF MEMBERS.—Each mem14 ber of the Commission or Task Force who is not an 

15 officer or employee of the United States shall be 

16 compensated at a rate equal to the daily equivalent 

17 of the annual rate of basic pay prescribed for level 

18 IV of the Executive Schedule under section 5315 of 

19 title 5, United States Code, for each day (including 

20 travel time) during which the member is engaged in 

21 the performance of the duties of the Commission or 

22 Task Force. All members of the Commission or 

23 Task Force who are officers or employees of the 

24 United States shall serve without compensation in 
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1 addition to that received for their services as officers 

2 or employees of the United States. 

3 (2) TRAVEL EXPENSES.—The members of the 

4 Commission or Task Force shall be allowed travel 

5 expenses, including per diem in lieu of subsistence, 

6 at rates authorized for employees of agencies under 

7 subchapter I of chapter 57 of title 5, United States 

8 Code, while away from their homes or regular places 

9 of business in the performance of service of the 

10 Commission or Task Force. 

11 (3) STAFF.— 

12 (A) APPOINTMENT.—The chairman of the 

13 Commission or Task Force may, without regard 

14 to the civil service laws and regulations, appoint 

15 an executive director and such other personnel 

16 as may be necessary to enable the Commission 

17 or Task Force to perform its duties. The ap18 pointment of an executive director shall be sub19 ject to the approval of the Commission or Task 

20 Force. 

21 (B) COMPENSATION.—The chairman of 

22 the Commission or Task Force may fix the 

23 compensation of the executive director and 

24 other personnel without regard to the provisions 

25 of chapter 51 and subchapter III of chapter 53 
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1 of title 5, United States Code, relating to classi2 fication of positions and General Schedule pay 

3 rates, except that the rate of pay for the execu4 tive director and other personnel may not ex5 ceed the rate payable for level V of the Execu6 tive Schedule under section 5316 of such title. 

7 (4) DETAIL OF GOVERNMENT EMPLOYEES.— 

8 Upon request of the chairman of the Commission or 

9 Task Force, the head of any department or agency 

10 of the Federal Government may detail, on a nonre11 imbursable basis, any personnel of that department 

12 or agency to the Commission or Task Force to assist 

13 it in carrying out its duties. 

14 (5) PROCUREMENT OF TEMPORARY AND INTER15 MITTENT SERVICES.—The chairman of the Commis16 sion or Task Force may procure temporary and 

17 intermittent services under section 3109(b) of title 

18 5, United States Code, at rates for individuals which 

19 do not exceed the daily equivalent of the annual rate 

20 of basic pay prescribed for level V of the Executive 

21 Schedule under section 5316 of such title. 

22 (h) TERMINATION OF COMMISSION OR TASK

23 FORCE.—The Commission or Task Force shall terminate 

24 60 days after the date on which the Commission or Task 
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1 Force submits the final comprehensive report under sub2 section (c)(3). 

3 (i) FUNDING.— 

4 (1) IN GENERAL.—The Secretary shall, upon 

5 the request of the chairman of the Commission or 

6 Task Force, make available to the Commission or 

7 Task Force such amounts as the Commission or 

8 Task Force may require to carry out the duties of 

9 the Commission or Task Force under this section. 

10 (2) AVAILABILITY.—Any sums made available 

11 to the Commission or Task Force shall remain avail12 able, without fiscal year limitation, until the termi13 nation of the Commission or Task Force. 

14 (j) DEFINITIONS.—In this section: 

15 (1) The term ‘‘appeals process’’ means the 

16 process to appeal the determination by the Secretary 

17 of a claim beginning with the notice of disagreement 

18 filed pursuant to section 7105 of title 38, United 

19 States Code, and ending with the review of a deci20 sion by the Supreme Court pursuant to section 

21 7292(c) of such title. 

22 (2) The term ‘‘Board’’ means the Board of Vet23 erans’ Appeals. 

24 (3) The term ‘‘strategic plan’’ means the Stra25 tegic Plan to Eliminate the Compensation Claims 
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1 Backlog, published by the Secretary of Veterans Af2 fairs on January 25, 2013. 

3 (k) EFFECTIVE DATE.—This section shall take effect 

4 on the date that is one year after the date of the enact5 ment of this Act. 

6 SEC. 15. METHODS FOR VALIDATING CERTAIN WORLD WAR 

7 II MERCHANT MARINER SERVICE CONSID8 ERED TO BE ACTIVE SERVICE BY THE SEC9 RETARY OF VETERANS AFFAIRS. 

10 (a) IN GENERAL.—For the purposes of verifying that 

11 an individual performed service under honorable condi12 tions that satisfies the requirements of a coastwise mer13 chant seaman who is recognized pursuant to section 401 

14 of the GI Bill Improvement Act of 1977 (Public Law 95– 

15 202; 38 U.S.C. 106 note) as having performed active duty 

16 service for the purposes described in subsection (c)(1), the 

17 Secretary of Defense shall accept the following: 

18 (1) In the case of an individual who served on 

19 a coastwise merchant vessel seeking such recognition 

20 for whom no applicable Coast Guard shipping or dis21 charge form, ship logbook, merchant mariner’s docu22 ment or Z-card, or other official employment record 

23 is available, the Secretary shall provide such recogni24 tion on the basis of applicable Social Security Ad25 ministration records submitted for or by the indi-
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1 vidual, together with validated testimony given by 

2 the individual or the primary next of kin of the indi3 vidual that the individual performed such service 

4 during the period beginning on December 7, 1941, 

5 and ending on December 31, 1946. 

6 (2) In the case of an individual who served on 

7 a coastwise merchant vessel seeking such recognition 

8 for whom the applicable Coast Guard shipping or 

9 discharge form, ship logbook, merchant mariner’s 

10 document or Z-card, or other official employment 

11 record has been destroyed or otherwise become un12 available by reason of any action committed by a 

13 person responsible for the control and maintenance 

14 of such form, logbook, or record, the Secretary shall 

15 accept other official documentation demonstrating 

16 that the individual performed such service during pe17 riod beginning on December 7, 1941, and ending on 

18 December 31, 1946. 

19 (3) For the purpose of determining whether to 

20 recognize service allegedly performed during the pe21 riod beginning on December 7, 1941, and ending on 

22 December 31, 1946, the Secretary shall recognize 

23 masters of seagoing vessels or other officers in com24 mand of similarly organized groups as agents of the 

25 United States who were authorized to document any 
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1 individual for purposes of hiring the individual to 

2 perform service in the merchant marine or dis3 charging an individual from such service. 

4 (b) TREATMENT OF OTHER DOCUMENTATION.— 

5 Other documentation accepted by the Secretary of Defense 

6 pursuant to subsection (a)(2) shall satisfy all requirements 

7 for eligibility of service during the period beginning on De8 cember 7, 1941, and ending on December 31, 1946. 

9 (c) BENEFITS ALLOWED.— 

10 (1) BURIAL BENEFITS ELIGIBILITY.—Service of 

11 an individual that is considered active duty pursuant 

12 to subsection (a) shall be considered as active duty 

13 service with respect to providing burial benefits 

14 under chapters 23 and 24 of title 38, United States 

15 Code, to the individual. 

16 (2) MEDALS, RIBBONS, AND DECORATIONS.— 

17 An individual whose service is recognized as active 

18 duty pursuant to subsection (a) may be awarded an 

19 appropriate medal, ribbon, or other military decora20 tion based on such service. 

21 (3) STATUS OF VETERAN.—An individual whose 

22 service is recognized as active duty pursuant to sub23 section (a) shall be honored as a veteran but shall 

24 not be entitled by reason of such recognized service 
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1 to any benefit that is not described in this sub2 section. 

3 (d) DETERMINATION OF COASTWISE MERCHANT

4 SEAMAN.—The Secretary of Defense shall verify that an 

5 individual performed service under honorable conditions 

6 that satisfies the requirements of a coastwise merchant 

7 seaman pursuant to this section without regard to the sex, 

8 age, or disability of the individual during the period in 

9 which the individual served as such a coastwise merchant 

10 seaman. 

11 (e) DEFINITION OF PRIMARY NEXT OF KIN.—In this 

12 section, the term ‘‘primary next of kin’’ with respect to 

13 an individual seeking recognition for service under this 

14 section means the closest living relative of the individual 

15 who was alive during the period of such service. 

16 (f) EFFECTIVE DATE.—This section shall take effect 

17 90 days after the date of the enactment of this Act. 

18 SEC. 16. DESIGNATION OF AMERICAN WORLD WAR II CIT19 IES. 

20 (a) IN GENERAL.—The Secretary of Veterans Affairs 

21 shall designate at least one city in the United States each 

22 year as an ‘‘American World War II City’’. 

23 (b) CRITERIA FOR DESIGNATION.—After the des24 ignation made under subsection (c), the Secretary, in con25 sultation with the Secretary of Defense, shall make each 
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1 designation under subsection (a) based on the following 

2 criteria: 

3 (1) Contributions by a city to the war effort 

4 during World War II, including those related to de5 fense manufacturing, bond drives, service in the 

6 Armed Forces, and the presence of military facilities 

7 within the city. 

8 (2) Efforts by a city to preserve the history of 

9 the city’s contributions during World War II, includ10 ing through the establishment of preservation orga11 nizations or museums, restoration of World War II 

12 facilities, and recognition of World War II veterans. 

13 (c) FIRST AMERICAN WORLD WAR II CITY.—The 

14 city of Wilmington, North Carolina, is designated as an 

15 ‘‘American World War II City’’. 

16 SEC. 17. SENSE OF CONGRESS REGARDING AMERICAN VET17 ERANS DISABLED FOR LIFE. 

18 (a) FINDINGS.—Congress makes the following find19 ings: 

20 (1) There are at least 3,600,000 veterans cur21 rently living with service-connected disabilities. 

22 (2) As a result of their service, many veterans 

23 are permanently disabled throughout their lives and 

24 in many cases must rely on the support of their fam-
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1 ilies and friends when these visible and invisible bur2 dens become too much to bear alone. 

3 (3) October 5, which is the anniversary of the 

4 dedication of the American Veterans Disabled for 

5 Life Memorial, has been recognized as an appro6 priate day on which to honor American veterans dis7 abled for life each year. 

8 (b) SENSE OF CONGRESS.—Congress— 

9 (1) expresses its appreciation to the men and 

10 women left permanently wounded, ill, or injured as 

11 a result of their service in the Armed Forces; 

12 (2) supports the annual recognition of Amer13 ican veterans disabled for life each year; and 

14 (3) encourages the American people to honor 

15 American veterans disabled for life each year with 

16 appropriate programs and activities. 

17 SEC. 18. EXTENSION OF PILOT PROGRAM ON COUNSELING 

18 IN RETREAT SETTINGS FOR WOMEN VET19 ERANS NEWLY SEPARATED FROM SERVICE IN 

20 THE ARMED FORCES. 

21 Section 203(d) of the Caregivers and Veterans Omni22 bus Health Services Act of 2010 (Public Law 111–163; 
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1 38 U.S.C. 1712A note) is amended by striking ‘‘December 

2 31, 2016’’ and inserting ‘‘December 31, 2021’’. 

Passed the House of Representatives February 9, 

2016. 

Attest: 

Clerk. 

114TH CONGRESS 

2D SESSION H. R. 677 

AN ACT 

To amend title 38, United States Code, to provide 

for other purposes. certain service-connected disabled veterans, and ency and indemnity compensation for survivors of connected disabilities and the rates of dependdisability compensation for veterans with serviceautomatically by law each year in the rates of for annual cost-of-living adjustments to be made