II 

110TH CONGRESS 

2D SESSION S. 3419 

To amend title 38, United States Code, to direct the Secretary of Veterans 

Affairs to modernize the disability benefits claims processing system 

of the Department of Veterans Affairs to ensure the accurate and timely 

delivery of compensation to veterans and their families and survivors, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 1, 2008 

Mrs. CLINTON (for herself and Mr. SCHUMER) introduced the following bill; 

which was read twice and referred to the Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to direct the Secretary of Veterans Affairs to modernize the disability 

benefits claims processing system of the Department of 

Veterans Affairs to ensure the accurate and timely delivery of compensation to veterans and their families and 

survivors, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Veterans Disability Benefits Claims Modernization Act 

6 of 2008’’. 


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

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

TITLE I—MATTERS RELATING TO MODERNIZING THE DISABILITY COMPENSATION SYSTEM OF DEPARTMENT OF VETERANS AFFAIRS 

Sec. 101. Office of Survivors Assistance. 

Sec. 102. Study on readjustment of schedule for rating disabilities. 

Sec. 103. Study on employee work credit system of Veterans Benefits Administration. 

Sec. 104. Study on work management system. 

Sec. 105. Certification and training of employees of Veterans Benefits Administration responsible for processing claims. 

Sec. 106. Annual assessment of quality assurance program. 

Sec. 107. Expedited treatment of fully developed claims and requirement for 

checklist to be provided to individuals submitting incomplete 

claims. 

Sec. 108. Study and report on employing medical professionals to assist employees of Veterans Benefits Administration. 

Sec. 109. Assignment of partial disability ratings to qualifying veterans. 

Sec. 110. Review and enhancement of use of information technology at Veterans Benefits Administration. 

Sec. 111. Treatment of claims upon death of claimant. 

TITLE II—MATTERS RELATING TO UNITED STATES COURT OF 

APPEALS FOR VETERANS CLAIMS 

Sec. 201. Annual reports on workload of United States Court of Appeals for 

Veterans Claims. 

Sec. 202. Modification of jurisdiction and finality of decisions of United States 

Court of Appeals for Veterans Claims. 

3 SEC. 2. FINDINGS. 

4 Congress makes the following findings: 

5 (1) At the end of fiscal year 2007, there were 

6 nearly 24,000,000 veterans in America. 

7 (2) According to the latest Annual Report from 

8 the Veterans Benefits Administration, there were 

9 3,582,255 veterans and survivors receiving com10 pensation and pension benefits under laws adminisVerDate Aug 31 2005 06:45 Aug 05, 2008 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3419.IS S3419

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1 tered by the Secretary of Veterans Affairs at the end 

2 of fiscal year 2006. 

3 (3) The number of veterans and survivors at 

4 the end of fiscal year 2006 included 2,725,824 vet5 erans receiving service-connected disability benefits, 

6 325,939 survivors receiving service-connected death 

7 benefits, 329,856 veterans receiving non-service-con8 nected disability benefits, and 200,636 survivors re9 ceiving non-service-connected death benefits. 

10 (4) During fiscal year 2006, almost 250,000 

11 beneficiaries began receiving benefits with 162,805 

12 of these being veterans whose compensation claims 

13 were granted. 

14 (5) Since October 7, 2001, the number of 

15 claims for new or increased benefits has risen sharp16 ly, exceeding 838,000 in 2007. 

17 (6) The Department of Veterans Affairs 

18 projects that the number of claims will surpass 

19 1,000,000 by the end of fiscal year 2008. 

20 (7) The number of disability compensation 

21 claims pending before the Department stands at 

22 nearly 630,000, as of the date of the enactment of 

23 this Act, about a quarter of which have been back24 logged for over six months. 


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1 (8) Processing times have increased from an av2 erage of 177 days in 2006 to 183 days in 2007. 

3 (9) The paper-based, labor-intensive process 

4 employed by the Department leaves many disabled 

5 veterans and survivors waiting months or years to 

6 receive the benefits they have earned. 

7 (10) The most prevalent disabilities among vet8 erans that are service-connected are auditory, with 

9 almost 840,000 veterans receiving compensation for 

10 such a disability, followed by musculoskeletal disabil11 ities and arthritis. 

12 (11) Post-traumatic stress disorder is the sixth 

13 most common disability, with more than 269,399 

14 service-connected veterans. 

15 (12) In 2006, the Veterans Health Administra16 tion treated 345,713 veterans with post-traumatic 

17 stress disorder, which was an increase of 27,099 

18 over 2005. 

19 (13) By January 2008, of the 1,600,000 vet20 erans who served in the Armed Forces after October 

21 7, 2001, the Veterans Health Administration had 

22 treated 59,838 for post-traumatic stress disorder. 

23 (14) Disabilities are evaluated in accordance 

24 with the Department of Veterans Affairs Schedule 

25 for Rating Disabilities (referred to in this section as 


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1 the ‘‘VASRD’’) under title 38, United States Code 

2 of Federal Regulations, part 4. 

3 (15) This schedule was originally created in 

4 1917 and was last comprehensively revised in 1945. 

5 (16) The VASRD contains many outdated and 

6 archaic criteria and lacks more commonly accepted 

7 medical practices and procedures. 

8 (17) Studies conducted by the Institute of Med9 icine found it to be an inadequate instrument for 

10 compensating disabilities for the average impair11 ments of earning capacity, especially in areas of 

12 mental health, unemployability, and for younger and 

13 severely injured veterans, and recommended it be re14 vised using more modern medical concepts. 

15 (18) The Department of Veterans Affairs must 

16 modernize the claims processing system of the Vet17 erans Benefits Administration to make it a first18 class, veteran-centered system that uses 21st cen19 tury technologies and paradigms and reflects the 

20 dignity and sacrifices made by disabled veterans, 

21 their families, and survivors. 


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1 TITLE I—MATTERS RELATING 

2 TO MODERNIZING THE DIS3 ABILITY COMPENSATION SYS4 TEM OF DEPARTMENT OF 

5 VETERANS AFFAIRS 

6 SEC. 101. OFFICE OF SURVIVORS ASSISTANCE. 

7 (a) IN GENERAL.—Chapter 3 of title 38, United 

8 States Code, is amended by adding at the end the fol9 lowing new section: 

10 ‘‘§ 321. Office of Survivors Assistance 

11 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab12 lish in the Veterans Benefits Administration an Office of 

13 Survivors Assistance (in this section referred to as the ‘Of14 fice’) to provide direct assistance regarding all benefits 

15 and services delivered by the Department— 

16 ‘‘(1) to survivors and dependents of all deceased 

17 veterans; and 

18 ‘‘(2) to survivors and dependents of all deceased 

19 members of the Armed Forces. 

20 ‘‘(b) DUTIES.—The Office shall— 

21 ‘‘(1) be responsible for ensuring that— 

22 ‘‘(A) survivors and dependents of deceased 

23 veterans and deceased members of the Armed 

24 Forces have access to applicable benefits and 

25 services under this title; 


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1 ‘‘(B) programs carried out by the Depart2 ment under this title for such survivors and de3 pendents are carried out in a manner that is re4 sponsive to such survivors and dependents and 

5 their unique needs; 

6 ‘‘(C) regular and consistent monitoring of 

7 benefits delivery occurs; 

8 ‘‘(D) appropriate referrals are being made 

9 with respect to such survivors and dependents 

10 by, to, and within the Veterans Benefits Admin11 istration, Veterans Health Administration, and 

12 National Cemetery Administration; and 

13 ‘‘(E) such survivors and dependents are 

14 treated with dignity and respect by personnel of 

15 the Department; and 

16 ‘‘(2) act as a primary advisor to the Secretary 

17 on all matters related to the policies, programs, leg18 islative issues, and other initiatives affecting such 

19 survivors and dependents. 

20 ‘‘(c) ANNUAL REPORT.—The Secretary shall identify 

21 and include the activities of the Office in the annual report 

22 to Congress under section 529 of this title. 

23 ‘‘(d) GUIDANCE FROM STAKEHOLDERS.—In estab24 lishing the Office, the Secretary shall seek guidance from 

25 interested stakeholders, including appropriate employees, 


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1 employee representatives, managers, and appropriate pub2 lic and private entities, including veteran service organiza3 tions and other service organizations. 

4 ‘‘(e) RESOURCES.—The Secretary shall ensure that 

5 appropriate personnel, funding, and other resources are 

6 provided to the Office to carry out its responsibilities.’’. 

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

8 at the beginning of such chapter is amended by adding 

9 at the end the following new item: 

‘‘321. Office of Survivors Assistance.’’. 

10 SEC. 102. STUDY ON READJUSTMENT OF SCHEDULE FOR 

11 RATING DISABILITIES. 

12 (a) STUDY ON ADJUSTMENT OF SCHEDULE.— 

13 (1) STUDY REQUIRED.—The Secretary of Vet14 erans Affairs shall conduct a study on adjusting the 

15 schedule for rating disabilities adopted and applied 

16 by the Secretary under section 1155 of title 38, 

17 United States Code, so as to base the schedule on 

18 standards, practices, and codes in common use by 

19 the medical, mental health, and disability professions 

20 that are current as of the date of the enactment of 

21 this Act. 

22 (2) CONTENTS OF STUDY.—In conducting the 

23 study under this subsection, the Secretary shall— 

24 (A) determine how the schedule could be 

25 adjusted to take into account the loss of quality 


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1 of life and loss of earnings that result from spe2 cific disabilities; 

3 (B) examine the nature of the disabilities 

4 for which disability compensation is payable 

5 under laws other than laws administered by the 

6 Secretary; 

7 (C) examine whether disparities exist be8 tween the rating of physical and mental disabil9 ities, especially with respect to how the severity 

10 of mental disabilities should be adjudicated to 

11 ensure parity with physical disabilities whereby 

12 a veteran can be rated totally disabled while 

13 maintaining some level of employment; 

14 (D) measure the effect of disabilities on 

15 the psychological states, physical integrity, and 

16 social adaptability of veterans with such disabil17 ities; and 

18 (E) examine the effect of a veteran’s injury 

19 or combination of injuries on— 

20 (i) the average loss of the veteran’s 

21 earnings capacity, including the veteran’s 

22 inability to work in certain occupations; 

23 (ii) the veteran’s quality of life, in24 cluding activities of independent living, rec25 reational and community activities, and 


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1 personal relationships, including the inabil2 ity to participate in favorite activities, so3 cial problems related to disfigurement or 

4 cognitive difficulties, and the need to spend 

5 increased amounts of time performing ac6 tivities of daily living; and 

7 (iii) the extent to which benefits for 

8 veterans may be used to encourage vet9 erans to seek and undergo vocational reha10 bilitation. 

11 (3) CONSULTATION.—In conducting the study 

12 under this subsection, the Secretary shall consult 

13 with appropriate public and private entities, agen14 cies, and veterans service organizations, and shall 

15 employ consultants. 

16 (4) DEADLINE FOR COMPLETION.—The Sec17 retary shall complete the study required under this 

18 subsection by not later than 180 days after the date 

19 of the enactment of this Act. 

20 (5) REPORT TO CONGRESS.—Not later than 60 

21 days after completing the study required under this 

22 subsection, the Secretary shall submit to Congress a 

23 report on the study. The report shall include— 

24 (A) the results of the study on quality of 

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1 ice-connected disabilities for which the Sec2 retary entered into a contract on January 28, 

3 2008; 

4 (B) the Secretary’s findings and conclu5 sions with respect to adjusting the schedule for 

6 rating disabilities adopted and applied by the 

7 Secretary under section 1155 of title 38, United 

8 States Code, to account for the loss of quality 

9 of life and loss of earnings that result from spe10 cific disabilities; 

11 (C) the Secretary’s findings and conclu12 sions with respect to— 

13 (i) the report of the Veterans’ Dis14 ability Benefits Commission; 

15 (ii) the report of the President’s Com16 mission on the Care for America’s Return17 ing Wounded Warriors; 

18 (iii) the report of the Institute of 

19 Medicine entitled ‘‘A 21st Century System 

20 for Evaluating Veterans for Disability 

21 Benefits’’; and 

22 (iv) any other independent or advisory 

23 commission report on matters relating to 

24 such schedule that the Secretary deter25 mines is appropriate; 


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1 (D) the Secretary’s recommendations with 

2 respect to the appropriate disabilities for inclu3 sion in the schedule; 

4 (E) the Secretary’s recommendations with 

5 respect to the amount of compensation payable 

6 to veterans for the loss of quality of life and the 

7 basis for such recommendations; 

8 (F) the Secretary’s recommendations with 

9 respect to the amount of compensation payable 

10 to veterans for average loss of earnings capacity 

11 and the appropriate standards for determining 

12 whether a disability has caused a veteran to 

13 incur a loss of earnings capacity; 

14 (G) the Secretary’s assessment of the ef15 fect of the treatment of mental disabilities 

16 under the schedule for rating disabilities, as in 

17 effect on the date of the enactment of this Act; 

18 and 

19 (H) the Secretary’s determination with re20 spect to whether the regulations prescribed pur21 suant to section 1154 of title 38, United States 

22 Code, are consistent with providing, to the max23 imum extent possible, the benefit of the doubt 

24 to veterans covered by that section in the ab25 sence of official military records pertaining to 


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1 the service-connection of a veteran’s disability, 

2 and in particular, of post-traumatic stress dis3 order, when a determination of service-connec4 tion would be consistent with the duties, condi5 tions, and hardships of service in the Armed 

6 Forces. 

7 (b) SUBMISSION OF PLAN.— 

8 (1) PLAN REQUIRED.—Not later than 120 days 

9 after the date on which the Secretary submits the 

10 report required under subsection (a)(5), the Sec11 retary shall submit to Congress a plan to readjust 

12 the schedule for rating disabilities adopted and ap13 plied by the Secretary under section 1155 of title 38, 

14 United States Code. In developing the plan required 

15 under this subsection, the Secretary shall consider 

16 the report submitted under subsection (a)(5) and 

17 shall provide for the readjustment of such schedule 

18 for rating disabilities to— 

19 (A) align the schedule with medical con20 cepts considered best practices as of the date of 

21 the enactment of this Act, including those pro22 vided in the Current Procedural Terminology 

23 Manual, International Classification of Dis24 eases, the Diagnostic and Statistical Manual of 


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1 Mental Disorders, and applicable American 

2 Medical Association Guides; 

3 (B) bridge the gap between the schedule, 

4 as in effect on the date of the enactment of this 

5 Act, and medical understandings, as of such 

6 date, of injuries and diseases and the affects of 

7 such injuries and diseases on the ability of a 

8 person suffering from them to function; 

9 (C) prioritize such readjustment with re10 spect to post-traumatic stress disorder, other 

11 mental disorders, neurological disorders, trau12 matic brain injury, orthopedic disabilities, and 

13 digestive disabilities; 

14 (D) ensure that the schedule is automated 

15 in accordance with the review and comprehen16 sive plan of the Secretary under section 110 of 

17 this Act; and 

18 (E) ensure that a transition plan is pro19 vided to ease the transition from the schedule 

20 for rating disabilities, as in effect on the date 

21 of the enactment of this Act, to the implemen22 tation of the schedule for rating disabilities, as 

23 proposed to be readjusted by the plan under 

24 this subsection. 


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1 (2) TIMELINE FOR READJUSTMENT.—The Sec2 retary shall include in the plan submitted under the 

3 subsection a proposed timeline for when the Sec4 retary intends to readjust the schedule. Such pro5 posed timeline may not exceed three years. 

6 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated such sums as may be 

8 necessary to carry out subsections (a) and (b). 

9 (d) ADVISORY COMMITTEE ON DISABILITY COM10 PENSATION.— 

11 (1) ESTABLISHMENT.—Subchapter III of chap12 ter 5 of title 38, United States Code, is amended by 

13 adding at the end the following new section: 

14 ‘‘§ 546. Advisory Committee on Disability Compensa15 tion 

16 ‘‘(a) ESTABLISHMENT.—(1) There is in the Depart17 ment the Advisory Committee on Disability Compensation 

18 (hereinafter in this section referred to as the ‘Committee’). 

19 ‘‘(2) The Committee shall consist of not more than 

20 18 members appointed by the Secretary from among indi21 viduals who— 

22 ‘‘(A) have demonstrated significant civic or pro23 fessional achievement; and 


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1 ‘‘(B) have experience with the provision of dis2 ability compensation by the Department or are lead3 ing medical or scientific experts in relevant fields. 

4 ‘‘(3) The Secretary shall seek to ensure that members 

5 appointed to the Committee include individuals from a 

6 wide variety of geographic areas and ethnic backgrounds, 

7 individuals from veterans service organizations, individ8 uals with combat experience, and women. 

9 ‘‘(4) The Secretary shall determine the terms of serv10 ice and pay and allowances of the members of the Com11 mittee, except that a term of service may not exceed two 

12 years. The Secretary may reappoint any member for addi13 tional terms of service. 

14 ‘‘(b) RESPONSIBILITIES OF COMMITTEE.—(1) The 

15 Secretary shall, on a regular basis, consult with and seek 

16 the advice of the Committee with respect to the mainte17 nance and periodic readjustment of the schedule for rating 

18 disabilities under section 1155 of this title. 

19 ‘‘(2)(A) In providing advice to the Secretary under 

20 this subsection, the Committee shall— 

21 ‘‘(i) assemble and review relevant information 

22 relating to the needs of veterans with disabilities; 

23 ‘‘(ii) provide information relating to the nature 

24 and character of disabilities arising from service in 

25 the Armed Forces; 


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1 ‘‘(iii) provide an on-going assessment of the ef2 fectiveness of the schedule for rating disabilities; and 

3 ‘‘(iv) provide on-going advice on the most ap4 propriate means of responding to the needs of vet5 erans relating to disability compensation in the fu6 ture. 

7 ‘‘(B) In carrying out its duties under subparagraph 

8 (A), the Committee shall take into special account the 

9 needs of veterans who have served in a theater of combat 

10 operations. 

11 ‘‘(c) ANNUAL REPORT.—(1) Not later than March 31 

12 of each year, the Committee shall submit to the Secretary 

13 a report on the programs and activities of the Department 

14 that relate to the payment of disability compensation. 

15 Each such report shall include— 

16 ‘‘(A) an assessment of the needs of vet17 erans with respect to disability compensation; 

18 ‘‘(B) a review of the programs and activi19 ties of the Department designed to meet such 

20 needs; and 

21 ‘‘(C) such recommendations (including rec22 ommendations for administrative and legislative 

23 action) as the Committee considers appropriate. 

24 ‘‘(2) Not later than 90 days after the receipt of a 

25 report under paragraph (1), the Secretary shall transmit 


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1 to the Committees on Veterans’ Affairs of the Senate and 

2 House of Representatives a copy of the report, together 

3 with any comments and recommendations concerning the 

4 report that the Secretary considers appropriate. 

5 ‘‘(3) The Committee may also submit to the Sec6 retary such other reports and recommendations as the 

7 Committee considers appropriate. 

8 ‘‘(4) The Secretary shall submit with each annual re9 port submitted to the Congress pursuant to section 529 

10 of this title a summary of all reports and recommendations 

11 of the Committee submitted to the Secretary since the pre12 vious annual report of the Secretary submitted pursuant 

13 to that section. 

14 ‘‘(d) APPLICABILITY OF FEDERAL ADVISORY COM15 MITTEE ACT.—(1) Except as provided in paragraph (2), 

16 the provisions of the Federal Advisory Committee Act (5 

17 U.S.C. App.) shall apply to the activities of the Committee 

18 under this section. 

19 ‘‘(2) Section 14 of such Act shall not apply to the 

20 Committee.’’. 

21 (2) CLERICAL AMENDMENT.—The table of sec22 tions at the beginning of such chapter is amended 

23 by adding at the end of the items relating to sub24 chapter III the following new item: 

‘‘546. Advisory Committee on Disability Compensation.’’. 


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1 SEC. 103. STUDY ON EMPLOYEE WORK CREDIT SYSTEM OF 

2 VETERANS BENEFITS ADMINISTRATION. 

3 (a) STUDY REQUIRED.—The Secretary of Veterans 

4 Affairs shall conduct a study on the employee work credit 

5 system of the Veterans Benefits Administration of the De6 partment of Veterans Affairs, which is used to measure 

7 the work production of employees of the Veterans Benefits 

8 Administration. 

9 (b) CONTENTS OF STUDY.—In carrying out the study 

10 under subsection (a), the Secretary shall consider the ad11 visability of implementing— 

12 (1) performance standards and accountability 

13 measures to ensure that— 

14 (A) claims for benefits under the laws ad15 ministered by the Secretary are processed in an 

16 objective, accurate, consistent, and efficient 

17 manner; and 

18 (B) final decisions with respect to such 

19 claims are consistent and issued within the av20 erage amount of time required to process a 

21 claim, as identified by the Secretary in the most 

22 recent annual report submitted by the Secretary 

23 under section 7734 of title 38, United States 

24 Code; 


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1 (2) guidelines and procedures for the prompt 

2 processing of such claims that are ready to rate 

3 upon submission; 

4 (3) guidelines and procedures for the processing 

5 of such claims submitted by severely injured and 

6 very severely injured veterans, as determined by the 

7 Secretary; and 

8 (4) requirements for assessments of claims 

9 processing at each regional office for the purpose of 

10 producing lessons learned and best practices. 

11 (c) REPORT TO CONGRESS.—Not later than 180 days 

12 after the date of the enactment of this Act, the Secretary 

13 shall submit to Congress a report on the study conducted 

14 under this section and the progress of the Secretary in 

15 implementing the new system for evaluating employees of 

16 the Veterans Benefits Administration required under sub17 section (d). 

18 (d) EVALUATION OF VETERANS BENEFITS ADMINIS19 TRATION EMPLOYEES.— 

20 (1) NEW SYSTEM REQUIRED.—By not later 

21 than 180 days after the date on which the Secretary 

22 of Veterans Affairs submits to Congress the report 

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1 tion of employees of the Veterans Benefits Adminis2 tration. Such system shall— 

3 (A) be based on the findings of the study 

4 conducted by the Secretary under this section; 

5 (B) focus on evaluating the accuracy and 

6 quality of ratings decisions made by such em7 ployees; and 

8 (C) not resemble or be based on any con9 cept on which the system in effect as of the 

10 date of the enactment of this Act is based. 

11 (2) SUSPENSION OF AWARD OF WORK CRED12 ITS.—If the Secretary of Veterans Affairs does not 

13 implement the new system for evaluating work pro14 duction as required under paragraph (1), the Sec15 retary may not award a work credit to any employee 

16 of the Veterans Benefits Administration until the 

17 Secretary has implemented such system. 

18 SEC. 104. STUDY ON WORK MANAGEMENT SYSTEM. 

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

20 shall conduct a study on the work management system 

21 of the Veterans Benefits Administration of the Depart22 ment of Veterans Affairs, which is designed to improve 

23 accountability, quality, and accuracy, and reduce the time 

24 for processing claims for benefits under laws administered 


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1 by the Secretary that are adjudicated by the Veterans 

2 Benefits Administration. 

3 (b) CONTENTS OF STUDY.—In conducting the study 

4 required under subsection (a), the Secretary shall con5 sider— 

6 (1) accountability for claims adjudication out7 comes; 

8 (2) the quality of claims adjudicated; 

9 (3) a simplified process to adjudicate claims; 

10 (4) the maximum use of information technology 

11 applications; 

12 (5) rules-based applications and tools for proc13 essing and adjudicating claims efficiently and effec14 tively; and 

15 (6) methods of reducing the time required to 

16 obtain information from outside sources. 

17 (c) REPORT TO CONGRESS.—Not later than 180 days 

18 after the date of the enactment of this Act, the Secretary 

19 shall submit to Congress a report on the study conducted 

20 under this section. 

21 SEC. 105. CERTIFICATION AND TRAINING OF EMPLOYEES 

22 OF VETERANS BENEFITS ADMINISTRATION 

23 RESPONSIBLE FOR PROCESSING CLAIMS. 

24 (a) EMPLOYEE CERTIFICATION REQUIRED.— 


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1 (1) IN GENERAL.—Subchapter II of chapter 77 

2 of title 38, United States Code, is amended by add3 ing at the end the following new section: 

4 ‘‘§ 7735. Employee certification 

5 ‘‘(a) DEVELOPMENT OF CERTIFICATION EXAMINA6 TION.—The Secretary shall develop a certification exam7 ination for appropriate employees and managers of the 

8 Veterans Benefits Administration who are responsible for 

9 processing claims for benefits under the laws administered 

10 by the Secretary. The Secretary shall develop such exam11 ination in consultation with examination development ex12 perts, interested stakeholders, including such appropriate 

13 employees, employee representatives, and managers, and 

14 appropriate public and private entities, including veterans 

15 service organizations and other service organizations. 

16 ‘‘(b) EMPLOYEE AND MANAGER REQUIREMENT.— 

17 The Secretary shall require appropriate employees and 

18 managers of the Veterans Benefits Administration who 

19 are responsible for processing claims for benefits under 

20 the laws administered by the Secretary to take a certifi21 cation examination. 

22 ‘‘(c) LIMITATION.—The Secretary may not satisfy 

23 any requirement of this section through the use of any 

24 certification examination or program that exists as of the 


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1 date of the enactment of the Veterans Disability Benefits 

2 Claims Modernization Act of 2008.’’. 

3 (2) DEADLINES FOR IMPLEMENTATION.—The 

4 Secretary of Veterans Affairs shall— 

5 (A) develop the certification examination 

6 required to be developed under section 7735 of 

7 title 38, United States Code, as added by sub8 section (a), by not later than one year after the 

9 date of the enactment of this Act; and 

10 (B) implement procedures for admin11 istering the certification of employees under 

12 such section and begin administering the certifi13 cation examination required under such section 

14 by not later than 90 days after the date on 

15 which the development of such certification ex16 amination is complete. 

17 (3) CLERICAL AMENDMENT.—The table of sec18 tions at the beginning of such chapter is amended 

19 by adding at the end of the items relating to sub20 chapter II the following new item: 

‘‘7735. Employee certification.’’. 

21 (b) EVALUATION OF TRAINING.— 

22 (1) EVALUATION REQUIRED.—The Secretary of 

23 Veterans Affairs shall enter into a contract with a 

24 private entity with experience evaluating training 

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1 ized training requirements, under which that entity 

2 shall— 

3 (A) conduct an evaluation of the items re4 quired to be included in the annual report of 

5 the Secretary under section 7734 of title 38, 

6 United States Code, that were included in the 

7 last such report submitted before the date of 

8 the enactment of this Act, that relate to the 

9 training and performance assessment programs 

10 of the Department of Veterans Affairs for em11 ployees of the Veterans Benefits Administration 

12 who are responsible for matters relating to com13 pensation or pension benefits under the laws 

14 administered by the Secretary; and 

15 (B) not later than 180 days after the date 

16 of the enactment of this Act, submit to the Sec17 retary the results of such evaluation. 

18 (2) SUBMISSION OF RESULTS TO CONGRESS.— 

19 The Secretary shall include the results of the evalua20 tion required under paragraph (1) with the first an21 nual report required to be submitted to Congress 

22 under section 529 of title 38, United States Code, 

23 submitted after the date on which the Secretary re24 ceives such results. 


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1 (3) REPORT.—Not later than 180 days after 

2 the date on which the Secretary submits the report 

3 referred to in paragraph (2), the Secretary shall 

4 submit to Congress a report on any actions the Sec5 retary has taken or plans to take in response to the 

6 results of the evaluation required under paragraph 

7 (1). 

8 SEC. 106. ANNUAL ASSESSMENT OF QUALITY ASSURANCE 

9 PROGRAM. 

10 (a) ANNUAL ASSESSMENT REQUIRED.—Section 7731 

11 of title 38, United States Code, is amended by adding at 

12 the end the following new subsection: 

13 ‘‘(c)(1) The Secretary shall enter into a contract with 

14 an independent third-party entity for the conduct of an 

15 annual assessment of the quality assurance program 

16 under this section. Each such assessment shall— 

17 ‘‘(A) evaluate a statistically valid sample of em18 ployees of the Veterans Benefits Administration and 

19 a statistically valid sample of the work product of 

20 such employees to assess the quality and accuracy of 

21 such work product; 

22 ‘‘(B) measure the performance of each regional 

23 office of the Veterans Benefits Administration; 


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1 ‘‘(C) measure the accuracy of the disability rat2 ings assigned under the schedule for rating disabil3 ities under section 1155 of this title; 

4 ‘‘(D) compare disability ratings and evaluate 

5 consistency between regional offices; 

6 ‘‘(E) assess the performance of employees and 

7 managers of the Veterans Benefits Administration; 

8 and 

9 ‘‘(F) produce automated categorizable data to 

10 help identify trends. 

11 ‘‘(2) The Secretary shall use information gathered 

12 through the annual assessments required under this sec13 tion in developing the employee certification required 

14 under section 7735 of this title. 

15 ‘‘(3) In order to carry out the quality assurance pro16 gram under this subsection with respect to the administra17 tion of disability compensation and to reduce the variances 

18 between ratings in the regional offices of the Department, 

19 the Secretary shall ensure the accuracy and consistency 

20 across different offices within the Department of the treat21 ment of claims for disability compensation, including de22 terminations with respect to disability ratings and whether 

23 a disability is service-connected. 

24 ‘‘(4)(A) The Secretary shall retain, monitor, and 

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1 graph (B), including development of a demographic base2 line. 

3 ‘‘(B) The data covered by this paragraph includes the 

4 following: 

5 ‘‘(i) For each claim for disability compensation 

6 under laws administered by the Secretary submitted 

7 by a claimant— 

8 ‘‘(I) the State in which the claimant re9 sided when the claim was submitted; 

10 ‘‘(II) the decision of the Secretary with re11 spect to the claim; 

12 ‘‘(III) the regional office and individual 

13 employee of the Department responsible for 

14 evaluating the claim; and 

15 ‘‘(IV) the sex and race of the claimant. 

16 ‘‘(ii) The State of the claimant’s residence. 

17 ‘‘(iii) Such other data as the Secretary deter18 mines is appropriate for monitoring the accuracy 

19 and consistency of decisions with respect to such 

20 claims. 

21 ‘‘(5) Nothing in this subsection shall require the Sec22 retary to replace the quality assurance program under this 

23 section, as in effect on the date of the enactment of the 

24 Veterans Disability Benefits Claims Modernization Act of 

25 2008.’’. 


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1 (b) REPORT TO CONGRESS.—Section 7734 of such 

2 title is amended— 

3 (1) in paragraph (2), by striking ‘‘and’’ at the 

4 end; 

5 (2) by redesignating paragraph (3) as para6 graph (4); and 

7 (3) by inserting after paragraph (2) the fol8 lowing new paragraph (3): 

9 ‘‘(3) the results and findings of the most recent 

10 annual assessment conducted under section 7731(c) 

11 of this title; and’’. 

12 SEC. 107. EXPEDITED TREATMENT OF FULLY DEVELOPED 

13 CLAIMS AND REQUIREMENT FOR CHECKLIST 

14 TO BE PROVIDED TO INDIVIDUALS SUBMIT15 TING INCOMPLETE CLAIMS. 

16 (a) EXPEDITED TREATMENT OF FULLY DEVELOPED

17 CLAIMS.— 

18 (1) IN GENERAL.—Subchapter I of chapter 51 

19 of title 38, United States Code, is amended by add20 ing at the end the following new section: 

21 ‘‘§ 5109C. Expedited treatment of fully developed 

22 claims 

23 ‘‘(a) EXPEDITED TREATMENT REQUIRED.—The Sec24 retary shall take such actions as may be necessary to pro25 vide for the expeditious treatment by the appropriate reVerDate Aug 31 2005 06:45 Aug 05, 2008 Jkt 069200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S3419.IS S3419

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1 gional office of the Veterans Benefits Administration of 

2 any fully developed claim to ensure that any such claim 

3 is adjudicated not later than 90 days after the date on 

4 which the claim is submitted. 

5 ‘‘(b) NOTICE OF REQUIRED INFORMATION AND EVI6 DENCE.—Nothing in this section shall affect the responsi7 bility of the Secretary to provide notice under section 5103 

8 to a claimant and a claimant’s representative of required 

9 information and evidence that is necessary to substantiate 

10 a fully developed claim. 

11 ‘‘(c) FULLY DEVELOPED CLAIM DEFINED.—For 

12 purposes of this section, the term ‘fully developed claim’ 

13 means a claim for a benefit under a law administered by 

14 the Secretary— 

15 ‘‘(1) for which the claimant— 

16 ‘‘(A) received assistance from a veterans 

17 service officer, a State or county veterans serv18 ice officer, an agent, or an attorney; or 

19 ‘‘(B) submits along with the claim an ap20 propriate indication that the claimant does not 

21 intend to submit any additional information in 

22 support of the claim and does not require addi23 tional assistance with respect to the claim; and 

24 ‘‘(2) for which the claimant submits a certifi25 cation in writing that is signed by the claimant statVerDate Aug 31 2005 06:45 Aug 05, 2008 Jkt 069200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S3419.IS S3419

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1 ing that at the time of signature, no additional in2 formation is available or needs to be submitted in 

3 order for the claim to be adjudicated.’’. 

4 (2) CLERICAL AMENDMENT.—The table of sec5 tions at the beginning of such chapter is amended 

6 by adding at the end of the items relating to sub7 chapter I the following new item: 

‘‘5109C. Expedited treatment of fully developed claims.’’. 

8 (3) DEADLINES FOR IMPLEMENTATION.—By 

9 not later than 180 days after the date of the enact10 ment of this Act, the Secretary of Veterans Affairs 

11 shall establish a process for expediting claims under 

12 section 5109C of title 38, United States Code, as 

13 added by paragraph (1). 

14 (b) PROVISION OF CHECKLIST TO INDIVIDUALS SUB15 MITTING INCOMPLETE CLAIMS.— 

16 (1) CHECKLIST.—Section 5103 of title 38, 

17 United States Code, is amended— 

18 (A) by redesignating subsection (b) as sub19 section (c); and 

20 (B) by inserting after subsection (a) the 

21 following new subsection (b): 

22 ‘‘(b) PROVISION OF CHECKLIST.—In providing notice 

23 of required information and evidence to a claimant and 

24 a claimant’s representative, if any, under subsection (a), 

25 the Secretary shall provide to the claimant and any such 


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1 representative a checklist that includes a detailed descrip2 tion of information or evidence required to be submitted 

3 by the claimant to substantiate the claim.’’. 

4 (2) EFFECTIVE DATE.—Subsection (b) of sec5 tion 5103 of title 38, United States Code, as added 

6 by paragraph (1) shall apply with respect to notice 

7 provided after the date that is one year after the 

8 date of the enactment of this Act. 

9 (3) DEADLINE FOR CREATION OF CHECK10 LIST.—By not later than 180 days after the date of 

11 the enactment of this Act, the Secretary of Veterans 

12 Affairs shall create the checklist required under such 

13 subsection, as so added. 

14 (4) SUBMITTAL TO CONGRESS.—Not later than 

15 60 days after the Secretary creates the checklist re16 quired by such subsection, as so added, the Sec17 retary shall submit to Congress the checklist. 

18 SEC. 108. STUDY AND REPORT ON EMPLOYING MEDICAL 

19 PROFESSIONALS TO ASSIST EMPLOYEES OF 

20 VETERANS BENEFITS ADMINISTRATION. 

21 (a) STUDY.—The Secretary of Veterans Affairs shall 

22 conduct a study to evaluate the need of the Veterans Ben23 efits Administration of the Department of Veterans Af24 fairs to employ, in addition to medical professionals of the 

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1 sionals who are not physicians, to act as a medical ref2 erence for employees of the Administration so that such 

3 employees may accurately assess medical evidence sub4 mitted in support of claims for benefits under laws admin5 istered by the Secretary. In no case shall any such medical 

6 professional be employed to rate any disability or evaluate 

7 any claim. In conducting the study, the Secretary shall 

8 conduct statistically significant surveys of employees of 

9 the Administration to ascertain whether, how, and to what 

10 degree medical professionals could provide assistance to 

11 such employees. 

12 (b) REPORT TO CONGRESS.—Not later than 180 days 

13 after the date of the enactment of this Act, the Secretary 

14 shall submit to Congress a report on the study conducted 

15 under subsection (a). 

16 (c) ACCESS TO MEDICAL PROFESSIONALS.—If the 

17 Secretary hires medical professionals pursuant to the 

18 study conducted under this section, the Secretary shall en19 sure that employees employed by all regional offices of the 

20 Veterans Benefits Administration have access to such 

21 medical professionals. 


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1 SEC. 109. ASSIGNMENT OF PARTIAL DISABILITY RATINGS 

2 TO QUALIFYING VETERANS. 

3 (a) IN GENERAL.—Chapter 11 of title 38, United 

4 States Code, is amended by inserting after section 1155 

5 the following new section: 

6 ‘‘§ 1156. Partial disability ratings 

7 ‘‘(a) ASSIGNMENT OF PARTIAL RATINGS.—For the 

8 purpose of providing disability compensation under this 

9 chapter to a qualifying veteran, the Secretary shall assign 

10 a partial disability rating to the veteran as follows: 

11 ‘‘(1) In the case of a qualifying veteran de12 scribed in subsection (b)(3)(A), a rating of 100 per13 cent. 

14 ‘‘(2) In the case of a qualifying veteran de15 scribed in subsection (b)(3)(B), a rating of 50 per16 cent. 

17 ‘‘(b) QUALIFYING VETERAN.—For the purposes of 

18 this section, a qualifying veteran is a veteran— 

19 ‘‘(1) who has been discharged from active duty 

20 service for 365 days or less; 

21 ‘‘(2) for whom a permanent disability rating is 

22 not immediately assignable under the regular provi23 sions of the schedule for rating disabilities under 

24 section 1155 of this title or on the basis of indi25 vidual unemployability; and 

26 ‘‘(3) who has— 


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1 ‘‘(A) a severe disability for whom substan2 tially gainful employment is not feasible or ad3 visable; or 

4 ‘‘(B) a wound or injury, whether healed, 

5 unhealed or incompletely healed for whom ma6 terial impairment of employability is likely. 

7 ‘‘(c) EXAMINATIONS.—A medical examination of a 

8 qualifying veteran is not required to be performed before 

9 assigning a partial disability rating to the veteran under 

10 this section, but the fact that such an examination is con11 ducted shall not prevent the Secretary from assigning such 

12 a rating. 

13 ‘‘(d) TERMINATION OF PARTIAL RATING.—(1) Ex14 cept as provided in paragraph (2), a partial disability rat15 ing assigned to a veteran under this section shall remain 

16 in effect until the earlier of the following dates: 

17 ‘‘(A) The date on which the veteran receives a 

18 permanent disability rating based on the schedule 

19 for rating disabilities under section 1155 of this 

20 title. 

21 ‘‘(B) The date that is 365 days after the date 

22 of the veteran’s last separation or release from ac23 tive duty. 

24 ‘‘(2) The Secretary may extend a partial disability 

25 rating assigned to a veteran under this section beyond the 


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1 applicable termination date under paragraph (1), if the 

2 Secretary determines that such an extension is appro3 priate.’’. 

4 (b) EFFECTIVE DATE.—Section 1156 of title 38, 

5 United States Code, as added by paragraph (1), shall take 

6 effect on the date of the enactment of this Act. 

7 (c) CLERICAL AMENDMENT.—The table of sections 

8 at the beginning of such chapter is amended by inserting 

9 after the item relating to section 1155 the following new 

10 item: 

‘‘1156. Partial disability ratings.’’. 

11 SEC. 110. REVIEW AND ENHANCEMENT OF USE OF INFOR12 MATION TECHNOLOGY AT VETERANS BENE13 FITS ADMINISTRATION. 

14 (a) REVIEW AND COMPREHENSIVE PLAN.—By not 

15 later than one year after the date of the enactment of this 

16 Act, the Secretary of Veterans Affairs shall conduct a re17 view of the use of information technology at the Veterans 

18 Benefits Administration and develop a comprehensive plan 

19 for the use of such technology in processing claims for 

20 benefits under laws administered by the Secretary of Vet21 erans Affairs that would reduce subjectivity, avoidable re22 mands, and regional office variances in disability ratings. 

23 (b) INFORMATION TECHNOLOGY.—The plan devel24 oped under subsection (a) shall include— 


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1 (1) the use of rules-based processing and infor2 mation technology systems and automated decision 

3 support software at all levels of processing claims; 

4 (2) the enhancement of the use of information 

5 technology for all aspects of the claims process; 

6 (3) a technological platform that allows for the 

7 use of information that members of the Armed 

8 Forces, veterans, and dependents have submitted 

9 electronically, including uploaded military records, 

10 medical evidence, and other appropriate documenta11 tion, and the capability to view applications for bene12 fits submitted online; 

13 (4) the use of electronic examination templates 

14 in conjunction with the schedule for rating disabil15 ities under section 1155 of title 38, United States 

16 Code; 

17 (5) making such changes as may be required to 

18 the information technology system of the Depart19 ment so as to ensure that users of such system are 

20 able to access the service medical records of the De21 partment of Defense by not later than one year after 

22 the date on which the plan is implemented; 

23 (6) the provision of bi-directional access to med24 ical records and service records between the DepartVerDate Aug 31 2005 06:45 Aug 05, 2008 Jkt 069200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S3419.IS S3419

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1 ment of Veterans Affairs and the Department of De2 fense; and 

3 (7) the availability, on the Internet website of 

4 the Department, of a mechanism that can be used 

5 by a claimant to check on the status of any claim 

6 submitted by that claimant and that provides infor7 mation on— 

8 (A) whether a decision has been reached 

9 with respect to such a claim, notice of the deci10 sion; or 

11 (B) if no such decision has been reached, 

12 notice of— 

13 (i) whether the application submitted 

14 by the claimant is complete; 

15 (ii) whether the Secretary requires ad16 ditional information or evidence to process 

17 the claim; 

18 (iii) the estimated date on which a de19 cision with respect to the claim is expected 

20 to be made; and 

21 (iv) the stage at which the claim is 

22 being processed as of the date on which 

23 such status is checked. 

24 (c) REVIEW OF BEST PRACTICES AND LESSONS

25 LEARNED.—In carrying out this section, the Secretary 


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1 shall review best practices and lessons learned within the 

2 Department of Veterans Affairs and the use of the tech3 nology known as ‘‘VistA’’ by other Government entities 

4 and private sector organizations who employ information 

5 technology and automated decision support software 

6 (d) REDUCTION OF CLAIMS PROCESSING TIME.—In 

7 carrying out this section, the Secretary shall ensure that 

8 a plan is developed that, within three years of implementa9 tion, would reduce the processing time for each claim proc10 essed by the Veterans Benefits Administration to not 

11 longer than the average amount of time to required to 

12 process a claim, as identified by the Secretary in the most 

13 recent annual report submitted by the Secretary under 

14 section 7734 of title 38, United States Code. 

15 (e) CONSULTATION.—In carrying out this section, the 

16 Secretary of Veterans Affairs shall consult with informa17 tion technology designers at the Veterans Health Adminis18 tration, VistA managers, the Secretary of Defense, appro19 priate officials of other Government agencies, appropriate 

20 individuals in the private and public sectors, veterans serv21 ice organizations, and other relevant service organizations. 

22 (f) REPORT TO CONGRESS.—By not later than Janu23 ary 1, 2009, the Secretary shall submit to Congress a re24 port on the review and comprehensive plan required under 

25 this section. 


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1 SEC. 111. TREATMENT OF CLAIMS UPON DEATH OF CLAIM2 ANT. 

3 (a) TREATMENT OF BENEFICIARY OF VETERAN’S

4 ACCRUED BENEFITS AS CLAIMANT FOR PURPOSES OF IN5 COMPLETE CLAIMS UPON DEATH OF VETERAN.—Chapter 

6 51 of title 38, United States Code, is amended by inserting 

7 after section 5121 the following new section: 

8 ‘‘§ 5121A. Substitution in case of death of claimant 

9 ‘‘(a) SUBSTITUTION.—If a veteran who is a claimant 

10 dies while a claim for any benefit under a law administered 

11 by the Secretary, or an appeal of a decision with respect 

12 to such a claim, is pending and awaiting adjudication, the 

13 person who would receive any accrued benefits due to the 

14 veteran under section 5121(a)(2) of this title shall be 

15 treated as the claimant for the purposes of processing the 

16 claim to completion, except that such person may only 

17 submit new evidence in support of the claim during the 

18 one-year period beginning on the date of the death of the 

19 veteran. 

20 ‘‘(b) LIMITATION.—Only one person may be treated 

21 as the claimant under subsection (a). 

22 ‘‘(c) DESIGNATION OF THIRD PARTY.—If the person 

23 who would be eligible to be treated as the claimant under 

24 subsection (a) certifies to the Secretary that the person 

25 does not want to be treated as the claimant for such pur26 poses, such person may designate the person who would 


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1 receive the benefits under section 5121(a)(2) upon the 

2 death of the person who would otherwise be treated as 

3 the claimant under subsection (a) to be treated as the 

4 claimant for the purposes of processing the claim to com5 pletion.’’. 

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

7 at the beginning of such chapter is amended by inserting 

8 after the item relating to section 5121 the following new 

9 item: 

‘‘5121A. Death of claimant.’’. 

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

11 this section shall apply with respect to the claim of any 

12 veteran who dies on or after the date of the enactment 

13 of this Act. 

14 TITLE II—MATTERS RELATING 

15 TO UNITED STATES COURT 

16 OF APPEALS FOR VETERANS 

17 CLAIMS 

18 SEC. 201. ANNUAL REPORTS ON WORKLOAD OF UNITED 

19 STATES COURT OF APPEALS FOR VETERANS 

20 CLAIMS. 

21 (a) IN GENERAL.—Subchapter III of chapter 72 of 

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

23 end the following new section: 


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1 ‘‘§ 7288. Annual report 

2 ‘‘The chief judge of the Court shall annually submit 

3 to the Committee on Veterans’ Affairs of the Senate and 

4 the Committee on Veterans’ Affairs of the House of Rep5 resentatives a report summarizing the workload of the 

6 Court during the last fiscal year that ended before the sub7 mission of such report. Such report shall include, with re8 spect to such fiscal year, the following information: 

9 ‘‘(1) The number of appeals filed. 

10 ‘‘(2) The number of petitions filed. 

11 ‘‘(3) The number of applications filed under 

12 section 2412 of title 28. 

13 ‘‘(4) The number and type of dispositions, in14 cluding settlements. 

15 ‘‘(5) The median time from filing to disposition. 

16 ‘‘(6) The number of oral arguments. 

17 ‘‘(7) The number and status of pending appeals 

18 and petitions and of applications described in para19 graph (3). 

20 ‘‘(8) A summary of any service performed by 

21 recalled retired judges during the fiscal year. 

22 ‘‘(9) The number of decisions or dispositions 

23 rendered by a single judge, multi-judge panels and 

24 the full Court. 

25 ‘‘(10) The number of cases pending longer than 

26 18 months.’’. 


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

2 at the beginning of such chapter is amended by inserting 

3 after the item related to section 7287 the following new 

4 item: 

‘‘7288. Annual report.’’. 

5 SEC. 202. MODIFICATION OF JURISDICTION AND FINALITY 

6 OF DECISIONS OF UNITED STATES COURT OF 

7 APPEALS FOR VETERANS CLAIMS. 

8 (a) MODIFICATION.—Section 7252(a) of title 38, 

9 United States Code, is amended— 

10 (1) by striking the third sentence; and 

11 (2) by adding at the end the following new sen12 tence: ‘‘The Court shall have power to affirm, mod13 ify, reverse, remand, or vacate and remand a deci14 sion of the Board after deciding all relevant assign15 ments of error raised by an appellant for each par16 ticular claim for benefits. In a case in which the 

17 Court reverses a decision on the merits of a par18 ticular claim and orders an award of benefits, the 

19 Court need not decide any additional assignments of 

20 error with respect to that claim.’’ 

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

22 subsection (a) shall apply with respect to a decision of the 

23 Board of Veterans’ Appeals made on or after the date of 

24 the enactment of this Act. 

Æ 


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