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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3419 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Veterans 
Disability Benefits Claims Modernization Act of 2008''.
    (b) Table of Contents.--The table of contents for 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.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) At the end of fiscal year 2007, there were nearly 
        24,000,000 veterans in America.
            (2) According to the latest Annual Report from the Veterans 
        Benefits Administration, there were 3,582,255 veterans and 
        survivors receiving compensation and pension benefits under 
        laws administered by the Secretary of Veterans Affairs at the 
        end of fiscal year 2006.
            (3) The number of veterans and survivors at the end of 
        fiscal year 2006 included 2,725,824 veterans receiving service-
        connected disability benefits, 325,939 survivors receiving 
        service-connected death benefits, 329,856 veterans receiving 
        non-service-connected disability benefits, and 200,636 
        survivors receiving non-service-connected death benefits.
            (4) During fiscal year 2006, almost 250,000 beneficiaries 
        began receiving benefits with 162,805 of these being veterans 
        whose compensation claims were granted.
            (5) Since October 7, 2001, the number of claims for new or 
        increased benefits has risen sharply, exceeding 838,000 in 
        2007.
            (6) The Department of Veterans Affairs projects that the 
        number of claims will surpass 1,000,000 by the end of fiscal 
        year 2008.
            (7) The number of disability compensation claims pending 
        before the Department stands at nearly 630,000, as of the date 
        of the enactment of this Act, about a quarter of which have 
        been backlogged for over six months.
            (8) Processing times have increased from an average of 177 
        days in 2006 to 183 days in 2007.
            (9) The paper-based, labor-intensive process employed by 
        the Department leaves many disabled veterans and survivors 
        waiting months or years to receive the benefits they have 
        earned.
            (10) The most prevalent disabilities among veterans that 
        are service-connected are auditory, with almost 840,000 
        veterans receiving compensation for such a disability, followed 
        by musculoskeletal disabilities and arthritis.
            (11) Post-traumatic stress disorder is the sixth most 
        common disability, with more than 269,399 service-connected 
        veterans.
            (12) In 2006, the Veterans Health Administration treated 
        345,713 veterans with post-traumatic stress disorder, which was 
        an increase of 27,099 over 2005.
            (13) By January 2008, of the 1,600,000 veterans who served 
        in the Armed Forces after October 7, 2001, the Veterans Health 
        Administration had treated 59,838 for post-traumatic stress 
        disorder.
            (14) Disabilities are evaluated in accordance with the 
        Department of Veterans Affairs Schedule for Rating Disabilities 
        (referred to in this section as the ``VASRD'') under title 38, 
        United States Code of Federal Regulations, part 4.
            (15) This schedule was originally created in 1917 and was 
        last comprehensively revised in 1945.
            (16) The VASRD contains many outdated and archaic criteria 
        and lacks more commonly accepted medical practices and 
        procedures.
            (17) Studies conducted by the Institute of Medicine found 
        it to be an inadequate instrument for compensating disabilities 
        for the average impairments of earning capacity, especially in 
        areas of mental health, unemployability, and for younger and 
        severely injured veterans, and recommended it be revised using 
        more modern medical concepts.
            (18) The Department of Veterans Affairs must modernize the 
        claims processing system of the Veterans Benefits 
        Administration to make it a first-class, veteran-centered 
        system that uses 21st century technologies and paradigms and 
        reflects the dignity and sacrifices made by disabled veterans, 
        their families, and survivors.

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

SEC. 101. OFFICE OF SURVIVORS ASSISTANCE.

    (a) In General.--Chapter 3 of title 38, United States Code, is 
amended by adding at the end the following new section:
``Sec. 321. Office of Survivors Assistance
    ``(a) Establishment.--The Secretary shall establish in the Veterans 
Benefits Administration an Office of Survivors Assistance (in this 
section referred to as the `Office') to provide direct assistance 
regarding all benefits and services delivered by the Department--
            ``(1) to survivors and dependents of all deceased veterans; 
        and
            ``(2) to survivors and dependents of all deceased members 
        of the Armed Forces.
    ``(b) Duties.--The Office shall--
            ``(1) be responsible for ensuring that--
                    ``(A) survivors and dependents of deceased veterans 
                and deceased members of the Armed Forces have access to 
                applicable benefits and services under this title;
                    ``(B) programs carried out by the Department under 
                this title for such survivors and dependents are 
                carried out in a manner that is responsive to such 
                survivors and dependents and their unique needs;
                    ``(C) regular and consistent monitoring of benefits 
                delivery occurs;
                    ``(D) appropriate referrals are being made with 
                respect to such survivors and dependents by, to, and 
                within the Veterans Benefits Administration, Veterans 
                Health Administration, and National Cemetery 
                Administration; and
                    ``(E) such survivors and dependents are treated 
                with dignity and respect by personnel of the 
                Department; and
            ``(2) act as a primary advisor to the Secretary on all 
        matters related to the policies, programs, legislative issues, 
        and other initiatives affecting such survivors and dependents.
    ``(c) Annual Report.--The Secretary shall identify and include the 
activities of the Office in the annual report to Congress under section 
529 of this title.
    ``(d) Guidance From Stakeholders.--In establishing the Office, the 
Secretary shall seek guidance from interested stakeholders, including 
appropriate employees, employee representatives, managers, and 
appropriate public and private entities, including veteran service 
organizations and other service organizations.
    ``(e) Resources.--The Secretary shall ensure that appropriate 
personnel, funding, and other resources are provided to the Office to 
carry out its responsibilities.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``321. Office of Survivors Assistance.''.

SEC. 102. STUDY ON READJUSTMENT OF SCHEDULE FOR RATING DISABILITIES.

    (a) Study on Adjustment of Schedule.--
            (1) Study required.--The Secretary of Veterans Affairs 
        shall conduct a study on adjusting the schedule for rating 
        disabilities adopted and applied by the Secretary under section 
        1155 of title 38, United States Code, so as to base the 
        schedule on standards, practices, and codes in common use by 
        the medical, mental health, and disability professions that are 
        current as of the date of the enactment of this Act.
            (2) Contents of study.--In conducting the study under this 
        subsection, the Secretary shall--
                    (A) determine how the schedule could be adjusted to 
                take into account the loss of quality of life and loss 
                of earnings that result from specific disabilities;
                    (B) examine the nature of the disabilities for 
                which disability compensation is payable under laws 
                other than laws administered by the Secretary;
                    (C) examine whether disparities exist between the 
                rating of physical and mental disabilities, especially 
                with respect to how the severity of mental disabilities 
                should be adjudicated to ensure parity with physical 
                disabilities whereby a veteran can be rated totally 
                disabled while maintaining some level of employment;
                    (D) measure the effect of disabilities on the 
                psychological states, physical integrity, and social 
                adaptability of veterans with such disabilities; and
                    (E) examine the effect of a veteran's injury or 
                combination of injuries on--
                            (i) the average loss of the veteran's 
                        earnings capacity, including the veteran's 
                        inability to work in certain occupations;
                            (ii) the veteran's quality of life, 
                        including activities of independent living, 
                        recreational and community activities, and 
                        personal relationships, including the inability 
                        to participate in favorite activities, social 
                        problems related to disfigurement or cognitive 
                        difficulties, and the need to spend increased 
                        amounts of time performing activities of daily 
                        living; and
                            (iii) the extent to which benefits for 
                        veterans may be used to encourage veterans to 
                        seek and undergo vocational rehabilitation.
            (3) Consultation.--In conducting the study under this 
        subsection, the Secretary shall consult with appropriate public 
        and private entities, agencies, and veterans service 
        organizations, and shall employ consultants.
            (4) Deadline for completion.--The Secretary shall complete 
        the study required under this subsection by not later than 180 
        days after the date of the enactment of this Act.
            (5) Report to congress.--Not later than 60 days after 
        completing the study required under this subsection, the 
        Secretary shall submit to Congress a report on the study. The 
        report shall include--
                    (A) the results of the study on quality of life and 
                the payment of compensation for service-connected 
                disabilities for which the Secretary entered into a 
                contract on January 28, 2008;
                    (B) the Secretary's findings and conclusions with 
                respect to adjusting the schedule for rating 
                disabilities adopted and applied by the Secretary under 
                section 1155 of title 38, United States Code, to 
                account for the loss of quality of life and loss of 
                earnings that result from specific disabilities;
                    (C) the Secretary's findings and conclusions with 
                respect to--
                            (i) the report of the Veterans' Disability 
                        Benefits Commission;
                            (ii) the report of the President's 
                        Commission on the Care for America's Returning 
                        Wounded Warriors;
                            (iii) the report of the Institute of 
                        Medicine entitled ``A 21st Century System for 
                        Evaluating Veterans for Disability Benefits''; 
                        and
                            (iv) any other independent or advisory 
                        commission report on matters relating to such 
                        schedule that the Secretary determines is 
                        appropriate;
                    (D) the Secretary's recommendations with respect to 
                the appropriate disabilities for inclusion in the 
                schedule;
                    (E) the Secretary's recommendations with respect to 
                the amount of compensation payable to veterans for the 
                loss of quality of life and the basis for such 
                recommendations;
                    (F) the Secretary's recommendations with respect to 
                the amount of compensation payable to veterans for 
                average loss of earnings capacity and the appropriate 
                standards for determining whether a disability has 
                caused a veteran to incur a loss of earnings capacity;
                    (G) the Secretary's assessment of the effect of the 
                treatment of mental disabilities under the schedule for 
                rating disabilities, as in effect on the date of the 
                enactment of this Act; and
                    (H) the Secretary's determination with respect to 
                whether the regulations prescribed pursuant to section 
                1154 of title 38, United States Code, are consistent 
                with providing, to the maximum extent possible, the 
                benefit of the doubt to veterans covered by that 
                section in the absence of official military records 
                pertaining to the service-connection of a veteran's 
                disability, and in particular, of post-traumatic stress 
                disorder, when a determination of service-connection 
                would be consistent with the duties, conditions, and 
                hardships of service in the Armed Forces.
    (b) Submission of Plan.--
            (1) Plan required.--Not later than 120 days after the date 
        on which the Secretary submits the report required under 
        subsection (a)(5), the Secretary shall submit to Congress a 
        plan to readjust the schedule for rating disabilities adopted 
        and applied by the Secretary under section 1155 of title 38, 
        United States Code. In developing the plan required under this 
        subsection, the Secretary shall consider the report submitted 
        under subsection (a)(5) and shall provide for the readjustment 
        of such schedule for rating disabilities to--
                    (A) align the schedule with medical concepts 
                considered best practices as of the date of the 
                enactment of this Act, including those provided in the 
                Current Procedural Terminology Manual, International 
                Classification of Diseases, the Diagnostic and 
                Statistical Manual of Mental Disorders, and applicable 
                American Medical Association Guides;
                    (B) bridge the gap between the schedule, as in 
                effect on the date of the enactment of this Act, and 
                medical understandings, as of such date, of injuries 
                and diseases and the affects of such injuries and 
                diseases on the ability of a person suffering from them 
                to function;
                    (C) prioritize such readjustment with respect to 
                post-traumatic stress disorder, other mental disorders, 
                neurological disorders, traumatic brain injury, 
                orthopedic disabilities, and digestive disabilities;
                    (D) ensure that the schedule is automated in 
                accordance with the review and comprehensive plan of 
                the Secretary under section 110 of this Act; and
                    (E) ensure that a transition plan is provided to 
                ease the transition from the schedule for rating 
                disabilities, as in effect on the date of the enactment 
                of this Act, to the implementation of the schedule for 
                rating disabilities, as proposed to be readjusted by 
                the plan under this subsection.
            (2) Timeline for readjustment.--The Secretary shall include 
        in the plan submitted under the subsection a proposed timeline 
        for when the Secretary intends to readjust the schedule. Such 
        proposed timeline may not exceed three years.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out subsections (a) 
and (b).
    (d) Advisory Committee on Disability Compensation.--
            (1) Establishment.--Subchapter III of chapter 5 of title 
        38, United States Code, is amended by adding at the end the 
        following new section:
``Sec. 546. Advisory Committee on Disability Compensation
    ``(a) Establishment.--(1) There is in the Department the Advisory 
Committee on Disability Compensation (hereinafter in this section 
referred to as the `Committee').
    ``(2) The Committee shall consist of not more than 18 members 
appointed by the Secretary from among individuals who--
            ``(A) have demonstrated significant civic or professional 
        achievement; and
            ``(B) have experience with the provision of disability 
        compensation by the Department or are leading medical or 
        scientific experts in relevant fields.
    ``(3) The Secretary shall seek to ensure that members appointed to 
the Committee include individuals from a wide variety of geographic 
areas and ethnic backgrounds, individuals from veterans service 
organizations, individuals with combat experience, and women.
    ``(4) The Secretary shall determine the terms of service and pay 
and allowances of the members of the Committee, except that a term of 
service may not exceed two years. The Secretary may reappoint any 
member for additional terms of service.
    ``(b) Responsibilities of Committee.--(1) The Secretary shall, on a 
regular basis, consult with and seek the advice of the Committee with 
respect to the maintenance and periodic readjustment of the schedule 
for rating disabilities under section 1155 of this title.
    ``(2)(A) In providing advice to the Secretary under this 
subsection, the Committee shall--
            ``(i) assemble and review relevant information relating to 
        the needs of veterans with disabilities;
            ``(ii) provide information relating to the nature and 
        character of disabilities arising from service in the Armed 
        Forces;
            ``(iii) provide an on-going assessment of the effectiveness 
        of the schedule for rating disabilities; and
            ``(iv) provide on-going advice on the most appropriate 
        means of responding to the needs of veterans relating to 
        disability compensation in the future.
    ``(B) In carrying out its duties under subparagraph (A), the 
Committee shall take into special account the needs of veterans who 
have served in a theater of combat operations.
    ``(c) Annual Report.--(1) Not later than March 31 of each year, the 
Committee shall submit to the Secretary a report on the programs and 
activities of the Department that relate to the payment of disability 
compensation. Each such report shall include--
                    ``(A) an assessment of the needs of veterans with 
                respect to disability compensation;
                    ``(B) a review of the programs and activities of 
                the Department designed to meet such needs; and
                    ``(C) such recommendations (including 
                recommendations for administrative and legislative 
                action) as the Committee considers appropriate.
    ``(2) Not later than 90 days after the receipt of a report under 
paragraph (1), the Secretary shall transmit to the Committees on 
Veterans' Affairs of the Senate and House of Representatives a copy of 
the report, together with any comments and recommendations concerning 
the report that the Secretary considers appropriate.
    ``(3) The Committee may also submit to the Secretary such other 
reports and recommendations as the Committee considers appropriate.
    ``(4) The Secretary shall submit with each annual report submitted 
to the Congress pursuant to section 529 of this title a summary of all 
reports and recommendations of the Committee submitted to the Secretary 
since the previous annual report of the Secretary submitted pursuant to 
that section.
    ``(d) Applicability of Federal Advisory Committee Act.--(1) Except 
as provided in paragraph (2), the provisions of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall apply to the activities of the 
Committee under this section.
    ``(2) Section 14 of such Act shall not apply to the Committee.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end of 
        the items relating to subchapter III the following new item:

``546. Advisory Committee on Disability Compensation.''.

SEC. 103. STUDY ON EMPLOYEE WORK CREDIT SYSTEM OF VETERANS BENEFITS 
              ADMINISTRATION.

    (a) Study Required.--The Secretary of Veterans Affairs shall 
conduct a study on the employee work credit system of the Veterans 
Benefits Administration of the Department of Veterans Affairs, which is 
used to measure the work production of employees of the Veterans 
Benefits Administration.
    (b) Contents of Study.--In carrying out the study under subsection 
(a), the Secretary shall consider the advisability of implementing--
            (1) performance standards and accountability measures to 
        ensure that--
                    (A) claims for benefits under the laws administered 
                by the Secretary are processed in an objective, 
                accurate, consistent, and efficient manner; and
                    (B) final decisions with respect to such claims are 
                consistent and issued within the average amount of time 
                required to process a claim, as identified by the 
                Secretary in the most recent annual report submitted by 
                the Secretary under section 7734 of title 38, United 
                States Code;
            (2) guidelines and procedures for the prompt processing of 
        such claims that are ready to rate upon submission;
            (3) guidelines and procedures for the processing of such 
        claims submitted by severely injured and very severely injured 
        veterans, as determined by the Secretary; and
            (4) requirements for assessments of claims processing at 
        each regional office for the purpose of producing lessons 
        learned and best practices.
    (c) Report to Congress.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary shall submit to Congress a 
report on the study conducted under this section and the progress of 
the Secretary in implementing the new system for evaluating employees 
of the Veterans Benefits Administration required under subsection (d).
    (d) Evaluation of Veterans Benefits Administration Employees.--
            (1) New system required.--By not later than 180 days after 
        the date on which the Secretary of Veterans Affairs submits to 
        Congress the report required under subsection (d), the 
        Secretary shall establish a new system for evaluating the work 
        production of employees of the Veterans Benefits 
        Administration. Such system shall--
                    (A) be based on the findings of the study conducted 
                by the Secretary under this section;
                    (B) focus on evaluating the accuracy and quality of 
                ratings decisions made by such employees; and
                    (C) not resemble or be based on any concept on 
                which the system in effect as of the date of the 
                enactment of this Act is based.
            (2) Suspension of award of work credits.--If the Secretary 
        of Veterans Affairs does not implement the new system for 
        evaluating work production as required under paragraph (1), the 
        Secretary may not award a work credit to any employee of the 
        Veterans Benefits Administration until the Secretary has 
        implemented such system.

SEC. 104. STUDY ON WORK MANAGEMENT SYSTEM.

    (a) In General.--The Secretary of Veterans Affairs shall conduct a 
study on the work management system of the Veterans Benefits 
Administration of the Department of Veterans Affairs, which is designed 
to improve accountability, quality, and accuracy, and reduce the time 
for processing claims for benefits under laws administered by the 
Secretary that are adjudicated by the Veterans Benefits Administration.
    (b) Contents of Study.--In conducting the study required under 
subsection (a), the Secretary shall consider--
            (1) accountability for claims adjudication outcomes;
            (2) the quality of claims adjudicated;
            (3) a simplified process to adjudicate claims;
            (4) the maximum use of information technology applications;
            (5) rules-based applications and tools for processing and 
        adjudicating claims efficiently and effectively; and
            (6) methods of reducing the time required to obtain 
        information from outside sources.
    (c) Report to Congress.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary shall submit to Congress a 
report on the study conducted under this section.

SEC. 105. CERTIFICATION AND TRAINING OF EMPLOYEES OF VETERANS BENEFITS 
              ADMINISTRATION RESPONSIBLE FOR PROCESSING CLAIMS.

    (a) Employee Certification Required.--
            (1) In general.--Subchapter II of chapter 77 of title 38, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 7735. Employee certification
    ``(a) Development of Certification Examination.--The Secretary 
shall develop a certification examination for appropriate employees and 
managers of the Veterans Benefits Administration who are responsible 
for processing claims for benefits under the laws administered by the 
Secretary. The Secretary shall develop such examination in consultation 
with examination development experts, interested stakeholders, 
including such appropriate employees, employee representatives, and 
managers, and appropriate public and private entities, including 
veterans service organizations and other service organizations.
    ``(b) Employee and Manager Requirement.--The Secretary shall 
require appropriate employees and managers of the Veterans Benefits 
Administration who are responsible for processing claims for benefits 
under the laws administered by the Secretary to take a certification 
examination.
    ``(c) Limitation.--The Secretary may not satisfy any requirement of 
this section through the use of any certification examination or 
program that exists as of the date of the enactment of the Veterans 
Disability Benefits Claims Modernization Act of 2008.''.
            (2) Deadlines for implementation.--The Secretary of 
        Veterans Affairs shall--
                    (A) develop the certification examination required 
                to be developed under section 7735 of title 38, United 
                States Code, as added by subsection (a), by not later 
                than one year after the date of the enactment of this 
                Act; and
                    (B) implement procedures for administering the 
                certification of employees under such section and begin 
                administering the certification examination required 
                under such section by not later than 90 days after the 
                date on which the development of such certification 
                examination is complete.
            (3) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end of 
        the items relating to subchapter II the following new item:

``7735. Employee certification.''.
    (b) Evaluation of Training.--
            (1) Evaluation required.--The Secretary of Veterans Affairs 
        shall enter into a contract with a private entity with 
        experience evaluating training processes, continuing education 
        needs, and centralized training requirements, under which that 
        entity shall--
                    (A) conduct an evaluation of the items required to 
                be included in the annual report of the Secretary under 
                section 7734 of title 38, United States Code, that were 
                included in the last such report submitted before the 
                date of the enactment of this Act, that relate to the 
                training and performance assessment programs of the 
                Department of Veterans Affairs for employees of the 
                Veterans Benefits Administration who are responsible 
                for matters relating to compensation or pension 
                benefits under the laws administered by the Secretary; 
                and
                    (B) not later than 180 days after the date of the 
                enactment of this Act, submit to the Secretary the 
                results of such evaluation.
            (2) Submission of results to congress.--The Secretary shall 
        include the results of the evaluation required under paragraph 
        (1) with the first annual report required to be submitted to 
        Congress under section 529 of title 38, United States Code, 
        submitted after the date on which the Secretary receives such 
        results.
            (3) Report.--Not later than 180 days after the date on 
        which the Secretary submits the report referred to in paragraph 
        (2), the Secretary shall submit to Congress a report on any 
        actions the Secretary has taken or plans to take in response to 
        the results of the evaluation required under paragraph (1).

SEC. 106. ANNUAL ASSESSMENT OF QUALITY ASSURANCE PROGRAM.

    (a) Annual Assessment Required.--Section 7731 of title 38, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(c)(1) The Secretary shall enter into a contract with an 
independent third-party entity for the conduct of an annual assessment 
of the quality assurance program under this section. Each such 
assessment shall--
            ``(A) evaluate a statistically valid sample of employees of 
        the Veterans Benefits Administration and a statistically valid 
        sample of the work product of such employees to assess the 
        quality and accuracy of such work product;
            ``(B) measure the performance of each regional office of 
        the Veterans Benefits Administration;
            ``(C) measure the accuracy of the disability ratings 
        assigned under the schedule for rating disabilities under 
        section 1155 of this title;
            ``(D) compare disability ratings and evaluate consistency 
        between regional offices;
            ``(E) assess the performance of employees and managers of 
        the Veterans Benefits Administration; and
            ``(F) produce automated categorizable data to help identify 
        trends.
    ``(2) The Secretary shall use information gathered through the 
annual assessments required under this section in developing the 
employee certification required under section 7735 of this title.
    ``(3) In order to carry out the quality assurance program under 
this subsection with respect to the administration of disability 
compensation and to reduce the variances between ratings in the 
regional offices of the Department, the Secretary shall ensure the 
accuracy and consistency across different offices within the Department 
of the treatment of claims for disability compensation, including 
determinations with respect to disability ratings and whether a 
disability is service-connected.
    ``(4)(A) The Secretary shall retain, monitor, and store in an 
accessible format data described in subparagraph (B), including 
development of a demographic baseline.
    ``(B) The data covered by this paragraph includes the following:
            ``(i) For each claim for disability compensation under laws 
        administered by the Secretary submitted by a claimant--
                    ``(I) the State in which the claimant resided when 
                the claim was submitted;
                    ``(II) the decision of the Secretary with respect 
                to the claim;
                    ``(III) the regional office and individual employee 
                of the Department responsible for evaluating the claim; 
                and
                    ``(IV) the sex and race of the claimant.
            ``(ii) The State of the claimant's residence.
            ``(iii) Such other data as the Secretary determines is 
        appropriate for monitoring the accuracy and consistency of 
        decisions with respect to such claims.
    ``(5) Nothing in this subsection shall require the Secretary to 
replace the quality assurance program under this section, as in effect 
on the date of the enactment of the Veterans Disability Benefits Claims 
Modernization Act of 2008.''.
    (b) Report to Congress.--Section 7734 of such title is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following new 
        paragraph (3):
            ``(3) the results and findings of the most recent annual 
        assessment conducted under section 7731(c) of this title; 
        and''.

SEC. 107. EXPEDITED TREATMENT OF FULLY DEVELOPED CLAIMS AND REQUIREMENT 
              FOR CHECKLIST TO BE PROVIDED TO INDIVIDUALS SUBMITTING 
              INCOMPLETE CLAIMS.

    (a) Expedited Treatment of Fully Developed Claims.--
            (1) In general.--Subchapter I of chapter 51 of title 38, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 5109C. Expedited treatment of fully developed claims
    ``(a) Expedited Treatment Required.--The Secretary shall take such 
actions as may be necessary to provide for the expeditious treatment by 
the appropriate regional office of the Veterans Benefits Administration 
of any fully developed claim to ensure that any such claim is 
adjudicated not later than 90 days after the date on which the claim is 
submitted.
    ``(b) Notice of Required Information and Evidence.--Nothing in this 
section shall affect the responsibility of the Secretary to provide 
notice under section 5103 to a claimant and a claimant's representative 
of required information and evidence that is necessary to substantiate 
a fully developed claim.
    ``(c) Fully Developed Claim Defined.--For purposes of this section, 
the term `fully developed claim' means a claim for a benefit under a 
law administered by the Secretary--
            ``(1) for which the claimant--
                    ``(A) received assistance from a veterans service 
                officer, a State or county veterans service officer, an 
                agent, or an attorney; or
                    ``(B) submits along with the claim an appropriate 
                indication that the claimant does not intend to submit 
                any additional information in support of the claim and 
                does not require additional assistance with respect to 
                the claim; and
            ``(2) for which the claimant submits a certification in 
        writing that is signed by the claimant stating that at the time 
        of signature, no additional information is available or needs 
        to be submitted in order for the claim to be adjudicated.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end of 
        the items relating to subchapter I the following new item:

``5109C. Expedited treatment of fully developed claims.''.
            (3) Deadlines for implementation.--By not later than 180 
        days after the date of the enactment of this Act, the Secretary 
        of Veterans Affairs shall establish a process for expediting 
        claims under section 5109C of title 38, United States Code, as 
        added by paragraph (1).
    (b) Provision of Checklist to Individuals Submitting Incomplete 
Claims.--
            (1) Checklist.--Section 5103 of title 38, United States 
        Code, is amended--
                    (A) by redesignating subsection (b) as subsection 
                (c); and
                    (B) by inserting after subsection (a) the following 
                new subsection (b):
    ``(b) Provision of Checklist.--In providing notice of required 
information and evidence to a claimant and a claimant's representative, 
if any, under subsection (a), the Secretary shall provide to the 
claimant and any such representative a checklist that includes a 
detailed description of information or evidence required to be 
submitted by the claimant to substantiate the claim.''.
            (2) Effective date.--Subsection (b) of section 5103 of 
        title 38, United States Code, as added by paragraph (1) shall 
        apply with respect to notice provided after the date that is 
        one year after the date of the enactment of this Act.
            (3) Deadline for creation of checklist.--By not later than 
        180 days after the date of the enactment of this Act, the 
        Secretary of Veterans Affairs shall create the checklist 
        required under such subsection, as so added.
            (4) Submittal to congress.--Not later than 60 days after 
        the Secretary creates the checklist required by such 
        subsection, as so added, the Secretary shall submit to Congress 
        the checklist.

SEC. 108. STUDY AND REPORT ON EMPLOYING MEDICAL PROFESSIONALS TO ASSIST 
              EMPLOYEES OF VETERANS BENEFITS ADMINISTRATION.

    (a) Study.--The Secretary of Veterans Affairs shall conduct a study 
to evaluate the need of the Veterans Benefits Administration of the 
Department of Veterans Affairs to employ, in addition to medical 
professionals of the Veterans Health Administration, including medical 
professionals who are not physicians, to act as a medical reference for 
employees of the Administration so that such employees may accurately 
assess medical evidence submitted in support of claims for benefits 
under laws administered by the Secretary. In no case shall any such 
medical professional be employed to rate any disability or evaluate any 
claim. In conducting the study, the Secretary shall conduct 
statistically significant surveys of employees of the Administration to 
ascertain whether, how, and to what degree medical professionals could 
provide assistance to such employees.
    (b) Report to Congress.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary shall submit to Congress a 
report on the study conducted under subsection (a).
    (c) Access to Medical Professionals.--If the Secretary hires 
medical professionals pursuant to the study conducted under this 
section, the Secretary shall ensure that employees employed by all 
regional offices of the Veterans Benefits Administration have access to 
such medical professionals.

SEC. 109. ASSIGNMENT OF PARTIAL DISABILITY RATINGS TO QUALIFYING 
              VETERANS.

    (a) In General.--Chapter 11 of title 38, United States Code, is 
amended by inserting after section 1155 the following new section:
``Sec. 1156. Partial disability ratings
    ``(a) Assignment of Partial Ratings.--For the purpose of providing 
disability compensation under this chapter to a qualifying veteran, the 
Secretary shall assign a partial disability rating to the veteran as 
follows:
            ``(1) In the case of a qualifying veteran described in 
        subsection (b)(3)(A), a rating of 100 percent.
            ``(2) In the case of a qualifying veteran described in 
        subsection (b)(3)(B), a rating of 50 percent.
    ``(b) Qualifying Veteran.--For the purposes of this section, a 
qualifying veteran is a veteran--
            ``(1) who has been discharged from active duty service for 
        365 days or less;
            ``(2) for whom a permanent disability rating is not 
        immediately assignable under the regular provisions of the 
        schedule for rating disabilities under section 1155 of this 
        title or on the basis of individual unemployability; and
            ``(3) who has--
                    ``(A) a severe disability for whom substantially 
                gainful employment is not feasible or advisable; or
                    ``(B) a wound or injury, whether healed, unhealed 
                or incompletely healed for whom material impairment of 
                employability is likely.
    ``(c) Examinations.--A medical examination of a qualifying veteran 
is not required to be performed before assigning a partial disability 
rating to the veteran under this section, but the fact that such an 
examination is conducted shall not prevent the Secretary from assigning 
such a rating.
    ``(d) Termination of Partial Rating.--(1) Except as provided in 
paragraph (2), a partial disability rating assigned to a veteran under 
this section shall remain in effect until the earlier of the following 
dates:
            ``(A) The date on which the veteran receives a permanent 
        disability rating based on the schedule for rating disabilities 
        under section 1155 of this title.
            ``(B) The date that is 365 days after the date of the 
        veteran's last separation or release from active duty.
    ``(2) The Secretary may extend a partial disability rating assigned 
to a veteran under this section beyond the applicable termination date 
under paragraph (1), if the Secretary determines that such an extension 
is appropriate.''.
    (b) Effective Date.--Section 1156 of title 38, United States Code, 
as added by paragraph (1), shall take effect on the date of the 
enactment of this Act.
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1155 the following new item:

``1156. Partial disability ratings.''.

SEC. 110. REVIEW AND ENHANCEMENT OF USE OF INFORMATION TECHNOLOGY AT 
              VETERANS BENEFITS ADMINISTRATION.

    (a) Review and Comprehensive Plan.--By not later than one year 
after the date of the enactment of this Act, the Secretary of Veterans 
Affairs shall conduct a review of the use of information technology at 
the Veterans Benefits Administration and develop a comprehensive plan 
for the use of such technology in processing claims for benefits under 
laws administered by the Secretary of Veterans Affairs that would 
reduce subjectivity, avoidable remands, and regional office variances 
in disability ratings.
    (b) Information Technology.--The plan developed under subsection 
(a) shall include--
            (1) the use of rules-based processing and information 
        technology systems and automated decision support software at 
        all levels of processing claims;
            (2) the enhancement of the use of information technology 
        for all aspects of the claims process;
            (3) a technological platform that allows for the use of 
        information that members of the Armed Forces, veterans, and 
        dependents have submitted electronically, including uploaded 
        military records, medical evidence, and other appropriate 
        documentation, and the capability to view applications for 
        benefits submitted online;
            (4) the use of electronic examination templates in 
        conjunction with the schedule for rating disabilities under 
        section 1155 of title 38, United States Code;
            (5) making such changes as may be required to the 
        information technology system of the Department so as to ensure 
        that users of such system are able to access the service 
        medical records of the Department of Defense by not later than 
        one year after the date on which the plan is implemented;
            (6) the provision of bi-directional access to medical 
        records and service records between the Department of Veterans 
        Affairs and the Department of Defense; and
            (7) the availability, on the Internet website of the 
        Department, of a mechanism that can be used by a claimant to 
        check on the status of any claim submitted by that claimant and 
        that provides information on--
                    (A) whether a decision has been reached with 
                respect to such a claim, notice of the decision; or
                    (B) if no such decision has been reached, notice 
                of--
                            (i) whether the application submitted by 
                        the claimant is complete;
                            (ii) whether the Secretary requires 
                        additional information or evidence to process 
                        the claim;
                            (iii) the estimated date on which a 
                        decision with respect to the claim is expected 
                        to be made; and
                            (iv) the stage at which the claim is being 
                        processed as of the date on which such status 
                        is checked.
    (c) Review of Best Practices and Lessons Learned.--In carrying out 
this section, the Secretary shall review best practices and lessons 
learned within the Department of Veterans Affairs and the use of the 
technology known as ``VistA'' by other Government entities and private 
sector organizations who employ information technology and automated 
decision support software
    (d) Reduction of Claims Processing Time.--In carrying out this 
section, the Secretary shall ensure that a plan is developed that, 
within three years of implementation, would reduce the processing time 
for each claim processed by the Veterans Benefits Administration to not 
longer than the average amount of time to required to process a claim, 
as identified by the Secretary in the most recent annual report 
submitted by the Secretary under section 7734 of title 38, United 
States Code.
    (e) Consultation.--In carrying out this section, the Secretary of 
Veterans Affairs shall consult with information technology designers at 
the Veterans Health Administration, VistA managers, the Secretary of 
Defense, appropriate officials of other Government agencies, 
appropriate individuals in the private and public sectors, veterans 
service organizations, and other relevant service organizations.
    (f) Report to Congress.--By not later than January 1, 2009, the 
Secretary shall submit to Congress a report on the review and 
comprehensive plan required under this section.

SEC. 111. TREATMENT OF CLAIMS UPON DEATH OF CLAIMANT.

    (a) Treatment of Beneficiary of Veteran's Accrued Benefits as 
Claimant for Purposes of Incomplete Claims Upon Death of Veteran.--
Chapter 51 of title 38, United States Code, is amended by inserting 
after section 5121 the following new section:
``Sec. 5121A. Substitution in case of death of claimant
    ``(a) Substitution.--If a veteran who is a claimant dies while a 
claim for any benefit under a law administered by the Secretary, or an 
appeal of a decision with respect to such a claim, is pending and 
awaiting adjudication, the person who would receive any accrued 
benefits due to the veteran under section 5121(a)(2) of this title 
shall be treated as the claimant for the purposes of processing the 
claim to completion, except that such person may only submit new 
evidence in support of the claim during the one-year period beginning 
on the date of the death of the veteran.
    ``(b) Limitation.--Only one person may be treated as the claimant 
under subsection (a).
    ``(c) Designation of Third Party.--If the person who would be 
eligible to be treated as the claimant under subsection (a) certifies 
to the Secretary that the person does not want to be treated as the 
claimant for such purposes, such person may designate the person who 
would receive the benefits under section 5121(a)(2) upon the death of 
the person who would otherwise be treated as the claimant under 
subsection (a) to be treated as the claimant for the purposes of 
processing the claim to completion.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
5121 the following new item:

``5121A. Death of claimant.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to the claim of any veteran who dies on or after the 
date of the enactment of this Act.

   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.

    (a) In General.--Subchapter III of chapter 72 of title 38, United 
States Code, is amended by adding at the end the following new section:
``Sec. 7288. Annual report
    ``The chief judge of the Court shall annually submit to the 
Committee on Veterans' Affairs of the Senate and the Committee on 
Veterans' Affairs of the House of Representatives a report summarizing 
the workload of the Court during the last fiscal year that ended before 
the submission of such report. Such report shall include, with respect 
to such fiscal year, the following information:
            ``(1) The number of appeals filed.
            ``(2) The number of petitions filed.
            ``(3) The number of applications filed under section 2412 
        of title 28.
            ``(4) The number and type of dispositions, including 
        settlements.
            ``(5) The median time from filing to disposition.
            ``(6) The number of oral arguments.
            ``(7) The number and status of pending appeals and 
        petitions and of applications described in paragraph (3).
            ``(8) A summary of any service performed by recalled 
        retired judges during the fiscal year.
            ``(9) The number of decisions or dispositions rendered by a 
        single judge, multi-judge panels and the full Court.
            ``(10) The number of cases pending longer than 18 
        months.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item related to section 
7287 the following new item:

``7288. Annual report.''.

SEC. 202. MODIFICATION OF JURISDICTION AND FINALITY OF DECISIONS OF 
              UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS.

    (a) Modification.--Section 7252(a) of title 38, United States Code, 
is amended--
            (1) by striking the third sentence; and
            (2) by adding at the end the following new sentence: ``The 
        Court shall have power to affirm, modify, reverse, remand, or 
        vacate and remand a decision of the Board after deciding all 
        relevant assignments of error raised by an appellant for each 
        particular claim for benefits. In a case in which the Court 
        reverses a decision on the merits of a particular claim and 
        orders an award of benefits, the Court need not decide any 
        additional assignments of error with respect to that claim.''
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to a decision of the Board of Veterans' Appeals made 
on or after the date of the enactment of this Act.
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