```

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1326 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                S. 1326

     To amend title 38, United States Code, to improve and enhance 
   compensation and pension, health care, housing, burial, and other 
             benefits for veterans, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 8, 2007

  Mr. Sanders 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 improve and enhance 
   compensation and pension, health care, housing, burial, and other 
             benefits for veterans, 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 ``Comprehensive 
Veterans Benefits Improvements Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--HEALTH CARE MATTERS

Sec. 101. Enrollment of category 8 veterans in patient enrollment 
                            system.
Sec. 102. Health care for veterans who are catastrophically disabled.
Sec. 103. Repeal prior care requirement for eligibility for 
                            reimbursement for emergency treatment.
Sec. 104. Pilot program on lung cancer screening for veterans.
               TITLE II--COMPENSATION AND PENSION MATTERS

Sec. 201. Repeal of prohibition on concurrent receipt of compensation 
                            or pension and retired or retirement pay.
Sec. 202. Increase in certain rates of disability compensation.
Sec. 203. Provisions relating to service-connected hearing loss.
Sec. 204. Repeal of requirement of reduction of SBP survivor annuities 
                            by dependency and indemnity compensation.
Sec. 205. Increase in rate of dependency and indemnity compensation for 
                            surviving spouses of members of the Armed 
                            Forces who die on active duty.
Sec. 206. Reestablishment of age 55 as age of remarrying for retention 
                            of certain veterans survivor benefits for 
                            surviving spouses.
Sec. 207. Commencement of period of payment of compensation for 
                            temporary total service-connected 
                            disability attributable to hospitalization 
                            or treatment.
Sec. 208. Comptroller General report on adequacy of dependency and 
                            indemnity compensation to maintain 
                            survivors of veterans who die from service-
                            connected disabilities.
                      TITLE III--INSURANCE MATTERS

Sec. 301. Reduction in premiums under Service-Disabled Veterans 
                            Insurance program.
                 TITLE IV--BURIAL AND MEMORIAL MATTERS

Sec. 401. Plot allowances.
Sec. 402. Funeral and burial expenses.
Sec. 403. Authorization of appropriations for State cemetery grants 
                            program for fiscal year 2008.
                        TITLE V--HOUSING MATTERS

Sec. 501. Grants for specially adapted housing for veterans.
Sec. 502. Veterans' mortgage life insurance.
Sec. 503. Selected Reserves serving at least 1 year eligible for 
                            housing loans.
Sec. 504. Housing loan fees adjusted to rates in effect before passage 
                            of Veterans Benefits Act of 2003.
                   TITLE VI--BENEFITS ADMINISTRATION

Sec. 601. Judicial review.
Sec. 602. Elimination of rounding down of certain cost-of-living 
                            adjustments.
Sec. 603. Clinical Information Data Exchange Bureau.
Sec. 604. Study and report on reforms to strengthen and accelerate the 
                            evaluation and processing of disability 
                            claims by the Departments of Veterans 
                            Affairs and Defense.
                   TITLE VII--OTHER BENEFITS MATTERS

Sec. 701. Automobile assistance allowance.
Sec. 702. Refund of individual contributions for educational assistance 
                            made by individuals prevented from pursuing 
                            educational programs due to nature of 
                            discharge.
Sec. 703. Comptroller General report on provision of assisted living 
                            benefits for veterans.

                      TITLE I--HEALTH CARE MATTERS

SEC. 101. ENROLLMENT OF CATEGORY 8 VETERANS IN PATIENT ENROLLMENT 
              SYSTEM.

    (a) Enrollment.--Notwithstanding any other provision of law, the 
Secretary of Veterans Affairs shall permit each veteran described in 
paragraph (8) of section 1705(a) of title 38, United States Code, who 
presents for enrollment in the system of annual patient enrollment 
required by such section to enroll in such system for purposes of the 
receipt of care and services as specified in such section.
    (b) Effective Date.--This section shall take effect on October 1, 
2007.

SEC. 102. HEALTH CARE FOR VETERANS WHO ARE CATASTROPHICALLY DISABLED.

    (a) Report on Number of Veterans Wrongfully Misclassified.--Not 
later than 120 days after the date of the enactment of this Act, the 
Secretary of Veterans Affairs shall submit to Congress a report setting 
forth the number of veterans who were catastrophically disabled who 
were wrongfully misclassified as not being catastrophically disabled by 
reason and for the purposes of the administration of the amendments 
made by title I of the Veterans' Health Care Eligibility Reform Act of 
1996 (Public Law 104-262).
    (b) Reclassification of Veterans Wrongfully Misclassified.--The 
Secretary shall reclassify as catastrophically disabled each veteran 
who was catastrophically disabled but was misclassified as not being 
catastrophically disabled by reason and for the purposes of the 
administration of the amendments made by title I of the Veterans' 
Health Care Eligibility Reform Act of 1996. Each veteran shall, upon 
such reclassification, be entitled to such benefits under the laws 
administered by the Secretary as any other veteran who is 
catastrophically disabled, including priority of eligibility of 
enrollment as a so-called ``category 4 veteran'' under the patient 
enrollment system of the Department of Veterans Affairs under section 
1705 of title 38, United States Code.
    (c) Prohibition on Collection of Copayments and Other Fees for 
Hospital or Nursing Home Care.--Section 1710 of title 38, United States 
Code, is amended--
            (1) by redesignating subsection (h) as subsection (i); and
            (2) by inserting after subsection (g) the following new 
        subsection (h):
    ``(h) Notwithstanding any other provision of this section, a 
veteran who is catastrophically disabled shall not be required to make 
any payment otherwise required under subsection (f) or (g) for the 
receipt of hospital care or nursing home care under this section.''.
    (d) Effective Date.--Subsection (b) and the amendments made by 
subsection (c) shall take effect on October 1, 2007.

SEC. 103. REPEAL PRIOR CARE REQUIREMENT FOR ELIGIBILITY FOR 
              REIMBURSEMENT FOR EMERGENCY TREATMENT.

    (a) Repeal.--Section 1725(b)(2) of title 38, United States Code, is 
amended by striking ``if--'' and all that follows and inserting ``if 
the veteran is enrolled in the system of patient enrollment established 
under section 1705(a) of this title.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2007.

SEC. 104. PILOT PROGRAM ON LUNG CANCER SCREENING FOR VETERANS.

    (a) Pilot Program.--The Secretary of Veterans Affairs shall carry 
out a pilot program that provides for screening for lung cancer of 
veterans with a high risk of lung cancer.
    (b) Elements.--
            (1) In general.--The pilot program under subsection (a) 
        shall include such programs and activities as the Secretary 
        considers appropriate to permit the Secretary to make a 
        comprehensive assessment of the feasibility and advisability of 
        various approaches for expanding the program within the 
        Department of Veterans Affairs in order to conduct screenings 
        of veterans for lung cancer on a wider scale.
            (2) Consultation.--The Secretary shall carry out the pilot 
        program in consultation with the International Early Lung 
        Cancer Action Program and such other public and private 
        entities as the Secretary considers appropriate for purposes of 
        the pilot program.
    (c) Report.--Not later than 2 years after the commencement of the 
pilot program under subsection (a), the Secretary shall submit to 
Congress a report on the pilot program. The report shall include--
            (1) a description of the programs and activities under the 
        pilot program;
            (2) the comprehensive assessment of the Secretary described 
        in subsection (b)(1);
            (3) recommendations, if any, for legislation necessary to 
        implement on a wider basis a screening program for lung cancer 
        of veterans; and
            (4) such other matters as the Secretary considers 
        appropriate in light of the pilot program.
    (d) Authorization of Appropriations.--
            (1) In general.--There is hereby authorized to be 
        appropriated for the Department of Veterans Affairs for fiscal 
        year 2008, $3,000,000 to carry out this section.
            (2) Availability.--The amount authorized to be appropriated 
        by paragraph (1) shall remain available until expended.

               TITLE II--COMPENSATION AND PENSION MATTERS

SEC. 201. REPEAL OF PROHIBITION ON CONCURRENT RECEIPT OF COMPENSATION 
              OR PENSION AND RETIRED OR RETIREMENT PAY.

    (a) Repeal.--
            (1) In general.--Section 5304(a) of title 38, United States 
        Code, is amended to read as follows:
    ``(a)(1)(A) If an election is in effect under section 1413a of 
title 10, United States Code, with respect to any person, no pension or 
compensation under this title shall be made concurrently to the person 
based on the person's own service or concurrently to the person based 
on the service of any other person. This subparagraph shall not apply 
to the extent the person waives any applicable retired or retirement 
pay under subparagraph (B).
    ``(B) A person to whom subparagraph (A) applies who is receiving 
any applicable retired or retirement pay may file with the department 
paying such pay a waiver of so much of such pay as is equal to the 
amount of the pension or compensation to which subparagraph (A) 
otherwise applies. To prevent duplication of payment, the department 
with which any such waiver is filed shall notify the Secretary of the 
receipt of such waiver, the amount waived, and the effective date of 
the reduction in pay.
    ``(2) The annual amount of any applicable retired or retirement pay 
shall be counted as annual income for purposes of chapter 15 of this 
title.
    ``(3) In this subsection, the term `applicable retired or 
retirement pay' means retired or retirement pay paid under a provision 
of law providing retired or retirement pay to persons in the Armed 
Forces or to commissioned officers of the National Oceanic and 
Atmospheric Administration or of the Public Health Service.''.
            (2) Clerical amendments.--
                    (A) The heading for section 5304 of such title is 
                amended by striking ``Prohibition against'' and 
                inserting ``Provisions relating to''.
                    (B) The item relating to section 5304 in the table 
                of sections at the beginning of chapter 53 of such 
                title is amended by striking ``Prohibition against'' 
                and inserting ``Provisions relating to''.
    (b) Conforming Repeals.--
            (1) In general.--Section 5305 of title 38, United States 
        Code, and section 1414 of title 10, United States Code, are 
        each repealed.
            (2) Clerical amendments.--
                    (A) The table of sections at the beginning of 
                chapter 53 of title 38, United States Code, is amended 
                by striking the item relating to section 5305.
                    (B) The table of sections at the beginning of 
                chapter 71 of title 10, United States Code, is amended 
                by striking the item relating to section 1414.
    (c) Conforming Amendments to Combat-Related Special Compensation.--
            (1) Compensation only available to existing claimants.--
        Section 1413a of title 10, United States Code, is amended by 
        adding at the end the following new subsection:
    ``(j) Section Only To Apply to Retirees in Payment Status on 
October 1, 2007.--No payment under this section shall be made to an 
eligible combat-related disabled uniform services retiree for any month 
beginning after September 30, 2007, unless the retiree has an election 
in effect under this section for all months during the period beginning 
on October 1, 2007, and ending on the last day of the month to which 
the payment relates.''.
            (2) Clerical amendments.--
                    (A) Subsection (f) of such section is amended to 
                read as follows:
    ``(f) Revocation of Election.--The Secretary concerned shall 
provide for an annual period (referred to as an `open season') during 
which a person with an election in effect under subsection (a) shall 
have the right to revoke such election. Any such election shall be made 
under regulations prescribed by the Secretary concerned and, once made, 
shall be irrevocable. Such regulations shall provide for the form and 
manner for making such an election and shall provide for the date as of 
when such an election shall become effective. In the case of the 
Secretary of a military department, such regulations shall be subject 
to approval by the Secretary of Defense.''.
                    (B) Subsection (b)(2) of such section is amended by 
                striking ``sections 5304 and 5305 of title 38'' and 
                inserting ``section 5304(a)(1) of title 38''.
    (d) Other Conforming Amendments.--
            (1) Section 5111(b) of title 38, United States Code is 
        amended to read as follows:
    ``(b) During the period between the effective date of an award or 
increased award as provided under section 5110 of this title or other 
provision of law and the commencement of the period of payment based on 
such award as provided under subsection (a) of this section, an 
individual entitled to receive monetary benefits shall be deemed to be 
in receipt of such benefits for the purpose of all laws administered by 
the Secretary.''.
            (2) Sections 1463(a)(1), 1465(c)(1)(A), 1465(c)(1)(B), and 
        1466(b)(1)(D) of title 10, United States Code, are each amended 
        by striking ``or 1414''.
            (3) Subparagraphs (A) and (B) of section 1465(c)(4) of 
        title 10, United States Code, are each amended by striking 
        ``sections 1413a and 1414'' and inserting ``section 1413a''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007, and shall apply with respect to payments of 
compensation or pension and retired or retirement pay made on or after 
that date. No benefits are payable by reason of the amendments made by 
this section for any period before October 1, 2007.

SEC. 202. INCREASE IN CERTAIN RATES OF DISABILITY COMPENSATION.

    (a) Fifty Percent Increase in Certain Rates.--Subsection (k) of 
section 1114 of title 38, United States Code, is amended--
            (1) by striking ``$3,075'' and inserting ``$4,613'';
            (2) by striking ``$89'' both places it appears and 
        inserting ``$134''; and
            (3) by striking ``$4,313'' and inserting ``$6,470''.
    (b) Twenty Percent Increase in Certain Other Rates.--Such section 
is further amended--
            (1) in subsection (l), by striking ``$3,075'' and inserting 
        ``$3,690'';
            (2) in subsection (m), by striking ``$3,392'' and inserting 
        ``$4,070'';
            (3) in subsection (n), by striking ``$3,860'' and inserting 
        ``$4,632'';
            (4) in subsection (o), by striking ``$4,313'' and inserting 
        ``$5,176'';
            (5) in subsection (p), by striking ``$4,313'' each place it 
        appears and inserting ``$5,176'';
            (6) in subsection (r)--
                    (A) in paragraph (1), by striking ``$1,851'' and 
                inserting ``$2,221''; and
                    (B) in paragraph (2) by striking ``$2,757'' and 
                inserting ``$3,308''; and
            (7) in subsection (s), by striking ``$2,766'' and inserting 
        ``$3,319''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the first day of the first month that begins on or after the 
date of the enactment of this Act, and shall apply with respect to 
monthly amounts of disability compensation payable on or after that 
day.

SEC. 203. PROVISIONS RELATING TO SERVICE-CONNECTED HEARING LOSS.

    (a) Minimum Rating of Disability for Hearing Loss Requiring a 
Hearing Aid.--Section 1155 of title 38, United States Code, is amended 
by adding at the end the following new sentence: ``The minimum rating 
of disability under the schedule adopted under this section for a 
veteran for a disability consisting of hearing loss for which the 
wearing of a hearing aid or hearing aids is medically indicated shall 
be a rating of 10 percent.''.
    (b) Presumption That Hearing Loss Is Service Connected.--Section 
1112 of title 38, United States Code, is amended by adding at the end 
the following new subsection:
    ``(d) For purposes of section 1110 of this title, and subject to 
section 1113 of this title, if tinnitus or hearing loss typically 
related to noise exposure or acoustic trauma becomes manifest in a 
veteran who, during military service, performed duties typically 
involving high levels of noise exposure, the tinnitus or hearing loss 
shall be considered to have been incurred in or aggravated by such 
service, notwithstanding that there is no record of the disease during 
the period of service.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007. No benefit is payable by reason of the 
amendments made by this section for any period before October 1, 2007.

SEC. 204. REPEAL OF REQUIREMENT OF REDUCTION OF SBP SURVIVOR ANNUITIES 
              BY DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) Repeal.--
            (1) In general.--Subchapter II of chapter 73 of title 10, 
        United States Code, is amended as follows:
                    (A) In section 1450, by striking subsection (c).
                    (B) In section 1451(c)--
                            (i) by striking paragraph (2); and
                            (ii) by redesignating paragraphs (3) and 
                        (4) as paragraphs (2) and (3), respectively.
            (2) Conforming amendments.--Such subchapter is further 
        amended as follows:
                    (A) In section 1450--
                            (i) by striking subsection (e); and
                            (ii) by striking subsection (k).
                    (B) In section 1451(g)(1), by striking subparagraph 
                (C).
                    (C) In section 1452--
                            (i) in subsection (f)(2), by striking 
                        ``does not apply--'' and all that follows and 
                        inserting ``does not apply in the case of a 
                        deduction made through administrative error.''; 
                        and
                            (ii) by striking subsection (g).
                    (D) In section 1455(c), by striking ``, 
                1450(k)(2),''.
    (b) Prohibition on Retroactive Benefits.--No benefits may be paid 
to any person for any period before the effective date provided under 
subsection (f) by reason of the amendments made by subsection (a).
    (c) Prohibition on Recoupment of Certain Amounts Previously 
Refunded to SBP Recipients.--A surviving spouse who is or has been in 
receipt of an annuity under the Survivor Benefit Plan under subchapter 
II of chapter 73 of title 10, United States Code, that is in effect 
before the effective date provided under subsection (f) and that is 
adjusted by reason of the amendments made by subsection (a) and who has 
received a refund of retired pay under section 1450(e) of title 10, 
United States Code, shall not be required to repay such refund to the 
United States.
    (d) Repeal of Authority for Optional Annuity for Dependent 
Children.--Section 1448(d)(2) of such title is amended--
            (1) by striking ``Dependent children.--'' and all that 
        follows through ``In the case of a member described in 
        paragraph (1),'' and inserting ``Dependent children.--In the 
        case of a member described in paragraph (1),''; and
            (2) by striking subparagraph (B).
    (e) Restoration of Eligibility for Previously Eligible Spouses.--
The Secretary of the military department concerned shall restore 
annuity eligibility to any eligible surviving spouse who, in 
consultation with the Secretary, previously elected to transfer payment 
of such annuity to a surviving child or children under the provisions 
of section 1448(d)(2)(B) of title 10, United States Code, as in effect 
on the day before the effective date provided under subsection (f). 
Such eligibility shall be restored whether or not payment to such child 
or children subsequently was terminated due to loss of dependent status 
or death. For the purposes of this subsection, an eligible spouse 
includes a spouse who was previously eligible for payment of such 
annuity and is not remarried, or remarried after having attained age 
55, or whose second or subsequent marriage has been terminated by 
death, divorce or annulment.
    (f) Effective Date.--The sections and the amendments made by this 
section shall take effect on the later of--
            (1) the first day of the first month that begins after the 
        date of the enactment of this Act; or
            (2) the first day of the fiscal year that begins in the 
        calendar year in which this Act is enacted.

SEC. 205. INCREASE IN RATE OF DEPENDENCY AND INDEMNITY COMPENSATION FOR 
              SURVIVING SPOUSES OF MEMBERS OF THE ARMED FORCES WHO DIE 
              ON ACTIVE DUTY.

    (a) Increase in Rate.--Section 1311(a) of title 38, United States 
Code, is amended--
            (1) by redesignating paragraph (3) as paragraph (4);
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(4) The rate under paragraph (1) shall be increased by $228 in 
the case of the death of a member of the Armed Forces on active 
duty.''; and
            (3) in paragraph (4), as redesignated by paragraph (1) of 
        this subsection, by striking ``(1) and (2)'' and inserting 
        ``(1), (2), and (3)''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007, and shall apply with respect to dependency 
and indemnity compensation payable for months beginning on or after 
that date.

SEC. 206. REESTABLISHMENT OF AGE 55 AS AGE OF REMARRYING FOR RETENTION 
              OF CERTAIN VETERANS SURVIVOR BENEFITS FOR SURVIVING 
              SPOUSES.

    (a) Reestablishment.--Section 103(d)(2)(B) of title 38, United 
States Code, is amended--
            (1) in the first sentence, by striking ``age 57'' and 
        inserting ``age 55''; and
            (2) by striking the second sentence.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007. No benefit is payable by reason of the 
amendments made by this section for any period before October 1, 2007.

SEC. 207. COMMENCEMENT OF PERIOD OF PAYMENT OF COMPENSATION FOR 
              TEMPORARY TOTAL SERVICE-CONNECTED DISABILITY ATTRIBUTABLE 
              TO HOSPITALIZATION OR TREATMENT.

    (a) Commencement of Period of Payment.--Section 5111(c) of title 
38, United States Code, is amended by adding at the end the following 
new paragraph:
    ``(3) In the case of a temporary increase in compensation for 
hospitalization or treatment for a service-connected disability rated 
as total by reason of such hospitalization or treatment, the period of 
payment shall commence on the date of admission for such 
hospitalization or date of treatment, surgery, or other activity 
necessitating such treatment, as applicable.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2007. No benefit is payable by reason of the 
amendment made by subsection (a) for any period before October 1, 2007.

SEC. 208. COMPTROLLER GENERAL REPORT ON ADEQUACY OF DEPENDENCY AND 
              INDEMNITY COMPENSATION TO MAINTAIN SURVIVORS OF VETERANS 
              WHO DIE FROM SERVICE-CONNECTED DISABILITIES.

    (a) Report Required.--
            (1) In general.--Not later than 10 months after the date of 
        the enactment of this Act, the Comptroller General of the 
        United States shall submit to the congressional veterans 
        affairs committees a report on the adequacy of dependency and 
        indemnity compensation payable under chapter 13 of title 38, 
        United States Code, to surviving spouses and dependents of 
        veterans who die as a result of a service-connected disability 
        in maintaining such surviving spouses and dependents at a 
        standard of living above the poverty level.
            (2) Elements.--The report required by paragraph (1) shall 
        include--
                    (A) a description of the current system for the 
                payment of dependency and indemnity compensation to 
                surviving spouses and dependents described in paragraph 
                (1), including a statement of the rates of such 
                compensation so payable;
                    (B) an assessment of the adequacy of such payments 
                in maintaining such surviving spouses and dependents at 
                a standard of living above the poverty level; and
                    (C) such recommendations as the Comptroller General 
                considers appropriate in order to improve or enhance 
                the effects of such payments in maintaining such 
                surviving spouses and dependents at a standard of 
                living above the poverty level.
    (b) Congressional Veterans Affairs Committees Defined.--In this 
section, the term ``congressional veterans affairs committees'' means--
            (1) the Committee on Veterans' Affairs and the Committee on 
        Appropriations of the Senate; and
            (2) the Committee on Veterans' Affairs and the Committee on 
        Appropriations of the House of Representatives.

                      TITLE III--INSURANCE MATTERS

SEC. 301. REDUCTION IN PREMIUMS UNDER SERVICE-DISABLED VETERANS 
              INSURANCE PROGRAM.

    (a) In General.--Section 1922(a) of title 38, United States Code, 
is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by striking the fourth sentence and all that follows 
        and inserting the following:
    ``(2) Insurance granted under this section shall be issued upon the 
same terms and conditions as are contained in the standard policies of 
National Service Life Insurance, except that--
            ``(A) the amount of such insurance shall be $50,000, or 
        such lesser amount, evenly divisible by $10,000, as the insured 
        may specify;
            ``(B) the premium rates for such insurance--
                    ``(i) for premiums for months beginning before the 
                effective date of this paragraph under section 301(c) 
                of date of the enactment of the Comprehensive Veterans 
                Benefits Improvements Act of 2007 shall be based on the 
                Commissioners 1941 Standard Ordinary Table of Mortality 
                and interest at the rate of 2\1/4\ percent per year; 
                and
                    ``(ii) for premiums for months beginning on or 
                after that effective date shall be based upon the 2001 
                Commissioners Standard Ordinary Table of Mortality and 
                interest at the rate of 4\1/2\ percent per year;
            ``(C) all cash, loan, paid-up, and extended values--
                    ``(i) for a policy issued under this section before 
                the effective date described in subparagraph (B)(i) 
                shall be based upon the Commissioners 1941 Standard 
                Ordinary Table of Mortality and interest at the rate of 
                2\1/4\ percent per year; and
                    ``(ii) for a policy issued under this section on or 
                after that effective date shall be based upon the 2001 
                Commissioners Standard Ordinary Table of Mortality and 
                interest at the rate of 4\1/2\ percent per year;
            ``(D) all settlements on policies involving annuities shall 
        be calculated on the basis of the Annuity Table for 1949, and 
        interest at the rate of 2\1/4\ percent per year;
            ``(E) insurance granted under this section shall be on a 
        nonparticipating basis;
            ``(F) all premiums and other collections for insurance 
        under this section shall be credited directly to a revolving 
        fund in the Treasury of the United States; and
            ``(G) any payments on such insurance shall be made directly 
        from such fund.
    ``(3) Appropriations to the fund referred to in subparagraphs (F) 
and (G) of paragraph (2) are hereby authorized.
    ``(4) As to insurance issued under this section, waiver of premiums 
pursuant to section 602(n) of the National Service Life Insurance Act 
of 1940 and section 1912 of this title shall not be denied on the 
ground that the service-connected disability became total before the 
effective date of such insurance.''.
    (b) Coordination With Overall Limit.--Section 1903 of such title is 
amended by adding at the end the following new sentence: ``The 
limitations of this section shall not apply to insurance granted under 
section 1922 of this title, except that other insurance to which this 
section applies shall be taken into account in determining whether the 
limitations of subsections (a)(2)(A) and (b) of section 1922 of this 
title are met with respect to insurance granted under section 1922 of 
this title.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the later of--
            (1) October 1, 2007; or
            (2) the first day of the first month that begins more than 
        90 days after the date of the enactment of this Act.

                 TITLE IV--BURIAL AND MEMORIAL MATTERS

SEC. 401. PLOT ALLOWANCES.

    (a) Increase in Plot Allowance.--Section 2303 of title 38, United 
States Code, is amended by striking ``$300'' each place it appears and 
inserting ``$745 (as adjusted from time to time under subsection 
(c))''.
    (b) Expansion of Eligibility.--Subsection (b)(2) of such section is 
amended by striking ``such veteran is eligible'' and all that follows 
through ``, and''.
    (c) Annual Cost-of-Living Adjustment.--Such section is further 
amended by adding at the end the following new subsection:
    ``(c) With respect to any fiscal year, the Secretary shall provide 
a percentage increase (rounded to the nearest dollar) in each maximum 
amount of the plot allowance payable under this section equal to the 
percentage by which--
            ``(1) the Consumer Price Index (all items, United States 
        city average) for the 12-month period ending on the June 30 
        preceding the beginning of the fiscal year for which the 
        increase is made, exceeds
            ``(2) such Consumer Price Index for the 12-month period 
        preceding the 12-month period described in paragraph (1).''.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on October 1, 2007, and shall apply with respect to 
        deaths occurring on or after that date.
            (2) No cola adjustment for fiscal year 2008.--The 
        percentage increase required by subsection (c) of section 2303 
        of title 38, United States Code (as added by subsection (c) of 
        this section), for fiscal year 2008 shall not be made.

SEC. 402. FUNERAL AND BURIAL EXPENSES.

    (a) In General.--Section 2302 of title 38, United States Code, is 
amended--
            (1) in subsection (a), by striking ``$300'' in the matter 
        following paragraph (2) and inserting ``$1,270 (as adjusted 
        from time to time under subsection (c))''; and
            (2) by adding at the end the following new subsection:
    ``(c) With respect to any fiscal year, the Secretary shall provide 
a percentage increase (rounded to the nearest dollar) in the maximum 
amount of benefits payable under subsection (a) equal to the percentage 
by which--
            ``(1) the Consumer Price Index (all items, United States 
        city average) for the 12-month period ending on the June 30 
        preceding the beginning of the fiscal year for which the 
        increase is made, exceeds
            ``(2) such Consumer Price Index for the 12-month period 
        preceding the 12-month period described in paragraph (1).''.
    (b) Deaths From Service-Connected Disability.--Section 2307 of such 
title is amended--
            (1) by inserting ``(a) Funeral and Burial Expenses.--'' 
        before ``In any case'';
            (2) in paragraph (1) of subsection (a), as designated by 
        paragraph (1) of this subsection, by striking ``$2,000'' and 
        inserting ``$4,100 (as adjusted from time to time under 
        subsection (b))''; and
            (3) by adding at the end the following new subsection:
    ``(b) Cost-of-Living Adjustment.--With respect to any fiscal year, 
the Secretary shall provide a percentage increase (rounded to the 
nearest dollar) in the amount of benefits payable under subsection 
(a)(1) equal to the percentage by which--
            ``(1) the Consumer Price Index (all items, United States 
        city average) for the 12-month period ending on the June 30 
        preceding the beginning of the fiscal year for which the 
        increase is made, exceeds
            ``(2) such Consumer Price Index for the 12-month period 
        preceding the 12-month period described in paragraph (1).''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act, and shall 
        apply with respect to deaths occurring on or after that date.
            (2) No cola adjustment for fiscal year 2008.--The 
        percentage increase required by subsection (c) of section 2302 
        of title 38, United States Code (as added by subsection (a) of 
        this section), and the percentage increase required by 
        subsection (b) of section 2307 of title 38, United States Code 
        (as added by subsection (b) of this section), for fiscal year 
        2008 shall not be made.

SEC. 403. AUTHORIZATION OF APPROPRIATIONS FOR STATE CEMETERY GRANTS 
              PROGRAM FOR FISCAL YEAR 2008.

    There is hereby authorized to be appropriated for the Department of 
Veterans Affairs for fiscal year 2008, $37,000,000 for aid to States 
for the establishment, expansion, and improvement of veterans' 
cemeteries under section 2408 of title 38, United States Code.

                        TITLE V--HOUSING MATTERS

SEC. 501. GRANTS FOR SPECIALLY ADAPTED HOUSING FOR VETERANS.

    (a) Increase in Grant Amounts.--
            (1) Acquisition of housing.--Subsection (d)(1) of section 
        2102 of title 38, United States Code, is amended by striking 
        ``$50,000'' and inserting ``$60,000 (as adjusted from time to 
        time under subsection (f))''.
            (2) Adaptations to housing.--Subsections (b)(2) and (d)(2) 
        of such section are each amended by striking ``$10,000'' and 
        inserting ``$12,000 (as adjusted from time to time under 
        subsection (f))''.
    (b) Additional Grant for Acquisition of Subsequent Housing Unit.--
Such section is further amended--
            (1) in subsection (c), by inserting ``or (e)'' after 
        ``subsection (a)''; and
            (2) by adding at the end the following new subsection:
    ``(e)(1) In addition to the assistance otherwise provided under 
subsection (d)(1), the assistance authorized by section 2101(a) of this 
title shall also include assistance for a veteran for the acquisition 
by the veteran of a housing unit to replace the housing unit for which 
assistance was provided under subsection (d)(1).
    ``(2) The amount of assistance under this subsection may not exceed 
the maximum amount of assistance available under subsection (d)(1).
    ``(3) Assistance shall be afforded under this subsection through a 
plan set forth in subsection (a), at the option of the veteran 
concerned.''.
    (c) Annual Cost-of-Living Adjustment.--Such section is further 
amended by adding at the end the following new subsection:
    ``(f)(1) Effective on October 1 of each year (beginning in 2008), 
the Secretary shall increase the amounts in effect under subsections 
(b)(2), (d)(1), and (d)(2) in accordance with this subsection.
    ``(2) The increase in amounts under paragraph (1) to take effect on 
October 1 of any year shall be the percentage by which (A) the 
residential home cost-of-construction index for the preceding calendar 
year exceeds (B) the residential home cost-of-construction index for 
the year preceding that year.
    ``(3) The Secretary shall establish a residential home cost-of-
construction index for the purposes of this subsection. The index shall 
reflect a uniform, national average increase in the cost of residential 
home construction, determined on a calendar year basis. The Secretary 
may use an index developed in the private sector that the Secretary 
determines is appropriate for purposes of this subsection.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007.

SEC. 502. VETERANS' MORTGAGE LIFE INSURANCE.

    (a) Increase in Amount of Insurance.--Section 2106(b) of title 38, 
United States Code, is amended by striking ``$90,000'' and inserting 
``$150,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the later of--
            (1) October 1, 2007; or
            (2) the first day of the first month that begins more than 
        90 days after the date of the enactment of this Act.

SEC. 503. SELECTED RESERVES SERVING AT LEAST 1 YEAR ELIGIBLE FOR 
              HOUSING LOANS.

    (a) Reduction in Period of Service Requirement for Selected 
Reserves.--Section 3701(b)(5)(A) of title 38, United States Code, is 
amended by striking ``6 years'' each place it appears and inserting ``1 
year''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2007.

SEC. 504. HOUSING LOAN FEES ADJUSTED TO RATES IN EFFECT BEFORE PASSAGE 
              OF VETERANS BENEFITS ACT OF 2003.

    (a) In General.--Paragraph (2) of section 3729(b) of title 38, 
United States Code, is amended to read as follows:
    ``(2) The loan fee table referred to in paragraph (1) is as 
follows:

                            ``LOAN FEE TABLE
------------------------------------------------------------------------
                                   Active duty                  Other
           Type of loan              veteran     Reservist     obligor
------------------------------------------------------------------------
(A)(i) Initial loan described in          2.00         2.75           NA
 section 3710(a) to purchase or
 construct a dwelling with 0-
 down, or any other initial loan
 described in section 3710(a)
 other than with 5-down or 10-
 down (closed on or after October
 1, 2007, and before October 1,
 2011)...........................
(A)(ii) Initial loan described in         1.25         2.00           NA
 section 3710(a) to purchase or
 construct a dwelling with 0-
 down, or any other initial loan
 described in section 3710(a)
 other than with 5-down or 10-
 down (closed on or after October
 1, 2011)........................
(B)(i) Subsequent loan described          3.00         3.00           NA
 in section 3710(a) to purchase
 or construct a dwelling with 0-
 down, or any other subsequent
 loan described in section
 3710(a) (closed on or after
 October 1, 2007 and before
 October 1, 2011)................
(B)(ii) Subsequent loan described         1.25         2.00           NA
 in section 3710(a) to purchase
 or construct a dwelling with 0-
 down, or any other subsequent
 loan described in section
 3710(a) (closed on or after
 October 1, 2011)................
(C)(i) Loan described in section          1.50         2.25           NA
 3710(a) to purchase or construct
 a dwelling with 5-down (closed
 on or after October 1, 2007, and
 before October 1, 2011).........
(C)(ii) Loan described in section         0.75         1.50           NA
 3710(a) to purchase or construct
 a dwelling with 5-down (closed
 on or after October 1, 2011)....
(D)(i) Initial loan described in          1.25         2.00           NA
 section 3710(a) to purchase or
 construct a dwelling with 10-
 down (closed on or after October
 1, 2007, and before October 1,
 2011)...........................
(D)(ii) Initial loan described in         0.50         1.25           NA
 section 3710(a) to purchase or
 construct a dwelling with 10-
 down (closed on or after October
 1, 2011)........................
(E) Interest rate reduction               0.50         0.50           NA
 refinancing loan................
(F) Direct loan under section             1.00         1.00           NA
 3711............................
(G) Manufactured home loan under          1.00         1.00           NA
 section 3712 (other than an
 interest rate reduction
 refinancing loan)...............
(H) Loan to Native American               1.25         1.25           NA
 veteran under section 3762
 (other than an interest rate
 reduction refinancing loan).....
(I) Loan assumption under section         0.50         0.50         0.50
 3714............................
(J) Loan under section 3733(a)...         2.25         2.25     2.25.''.
------------------------------------------------------------------------

    (b) Effective Date.--The amendment made by this section shall apply 
to loans closed after September 30, 2007.

                   TITLE VI--BENEFITS ADMINISTRATION

SEC. 601. JUDICIAL REVIEW.

    (a) Review by United States Court of Appeals for Federal Circuit of 
Adoption or Revision of Schedule of Disability Ratings.--Section 502 of 
title 38, United States Code, is amended--
            (1) by inserting ``(a) Judicial Review.--'' before ``An 
        action'';
            (2) in subsection (a), as designated by paragraph (1) of 
        this subsection, by striking ``(other than an action relating 
        to the adoption or revision of the schedule of ratings for 
        disabilities adopted under section 1155 of this title)''; and
            (3) by adding at the end the following new subsection:
    ``(b) Standard of Review of Actions Relating to Schedule of Ratings 
for Disabilities.--In reviewing pursuant to this section an action of 
the Secretary relating to the adoption or revision of the schedule of 
ratings for disabilities under section 1155 of this title, the Court 
may set aside such action only if the Court finds such action to be 
arbitrary, capricious, or otherwise not in accordance with law.''.
    (b) Review by Court of Appeals for Veterans Claims of Adverse 
Findings of Material Facts.--Section 7261(a)(4) of such title is 
amended by striking ``is clearly erroneous'' and inserting ``is not 
reasonably supported by a preponderance of the evidence''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act. The amendment made by 
subsection (b) shall apply with respect to all cases pending for 
decision before the United States Court of Appeals for Veterans Claims 
other than a case in which a final decision has been entered before the 
date of the enactment of this Act.

SEC. 602. ELIMINATION OF ROUNDING DOWN OF CERTAIN COST-OF-LIVING 
              ADJUSTMENTS.

    (a) Disability Compensation.--Section 1104(a) of title 38, United 
States Code, is amended by striking ``,with all'' and all that follows 
up to the period at the end.
    (b) Dependency Compensation.--Section 1303(a) of such title is 
amended by striking ``,with all'' and all that follows up to the period 
at the end.

SEC. 603. CLINICAL INFORMATION DATA EXCHANGE BUREAU.

    (a) Establishment of Bureau.--The Secretaries of Veterans Affairs 
and Department of Defense shall jointly establish the DoD/VA Clinical 
Information Data Exchange Bureau (in this section referred to as ``the 
Bureau'').
    (b) Information System.--
            (1) In general.--The Bureau shall establish and maintain an 
        information system that facilitates the clinical exchange of 
        computable data within and between the health systems of the 
        Department of Veterans Affairs and the Department of Defense.
            (2) Elements.--In establishing the information system 
        described in paragraph (1), the Bureau shall meet the following 
        requirements:
                    (A) Software requirements.--The system shall 
                utilize computer software--
                            (i) the source code of which is open source 
                        and available in the public domain,
                            (ii) that is nonproprietary, and
                            (iii) that ensures that the electronic 
                        medical records in the health systems of the 
                        Department of Veterans Affairs and the 
                        Department of Defense are able to understand 
                        all major clinical vocabularies.
                    (B) Patient privacy.--The system shall comply with 
                all appropriate rules, regulations, and procedures to 
                safeguard patient privacy and to ensure data security.
                    (C) Mapping of health information.--The Bureau 
                shall ensure that personal health information available 
                in electronic form outside of the system will be able 
                to be electronically mapped into the system.
                    (D) Maintenance.--The Bureau shall permanently 
                maintain the system, including ensuring that any 
                changes in any major clinical vocabulary are reflected 
                in a timely manner in the electronic medical records in 
                the health systems of the Department of Veterans 
                Affairs and the Department of Defense.
    (c) Cost of System.--
            (1) In general.--The cost of the information system 
        established under this section, and the annual costs of 
        maintaining the system, shall be borne equally by the 
        Department of Veterans Affairs and the Department of Defense.
            (2) Fees.--The Secretaries of Veterans Affairs and Defense 
        may charge vendor user fees in order to facilitate the use of 
        discrete clinical vocabularies within the system.

SEC. 604. STUDY AND REPORT ON REFORMS TO STRENGTHEN AND ACCELERATE THE 
              EVALUATION AND PROCESSING OF DISABILITY CLAIMS BY THE 
              DEPARTMENTS OF VETERANS AFFAIRS AND DEFENSE.

    (a) Study.--The Secretary of Veterans Affairs and the Secretary of 
Defense shall jointly conduct a study of the disability ratings systems 
of the Departments of Veterans Affairs and Defense, including an 
analysis of--
            (1) the interoperability of both systems, and
            (2) the feasibility and advisability of automating the 
        Veterans Administration Schedule for Rating Disabilities 
        (VASRD) to improve the time for processing, and the accuracy 
        of, disability ratings.
    (b) Report.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the Secretaries shall submit to the 
        relevant committees of Congress a joint report on the study 
        conducted under subsection (a).
            (2) Elements.--Such report shall include specific 
        legislative proposals, including the amount of funding, which 
        the Secretaries find necessary to--
                    (A) ensure that the disability ratings systems of 
                both the Department of Veterans Affairs and the 
                Department of Defense are interoperable and that 
                information contained in both systems can readily be 
                transmitted to and from each of the departments, and
                    (B) automate the Veterans Administration Schedule 
                for Rating Disabilities (VASRD), including--
                            (i) an analysis of the necessary computer 
                        software and other technology, and
                            (ii) a schedule for the completion of the 
                        automation.
    (c) Relevant Committees of Congress.--In this section, the term 
``relevant committees of Congress'' means--
            (1) the Committee on Veterans' Affairs and the Committee on 
        Armed Services of the Senate, and
            (2) the Committee on Veterans' Affairs and the Committee on 
        Armed Services of the House of Representatives.

                   TITLE VII--OTHER BENEFITS MATTERS

SEC. 701. AUTOMOBILE ASSISTANCE ALLOWANCE.

    (a) Increase in Amount of Allowance.--Subsection (a) of section 
3902 of title 38, United States Code, is amended by striking 
``$11,000'' and inserting ``$22,484 (as adjusted from time to time 
under subsection (e))''.
    (b) Annual Adjustment.--Such section is further amended by adding 
at the end the following new subsection:
    ``(e)(1) Effective on October 1 of each year (beginning in 2008), 
the Secretary shall increase the dollar amount in effect under 
subsection (a) to an amount equal to 80 percent of the average retail 
cost of new automobiles for the preceding calendar year.
    ``(2) The Secretary shall establish the method for determining the 
average retail cost of new automobiles for purposes of this subsection. 
The Secretary may use data developed in the private sector if the 
Secretary determines the data is appropriate for purposes of this 
subsection.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007.

SEC. 702. REFUND OF INDIVIDUAL CONTRIBUTIONS FOR EDUCATIONAL ASSISTANCE 
              MADE BY INDIVIDUALS PREVENTED FROM PURSUING EDUCATIONAL 
              PROGRAMS DUE TO NATURE OF DISCHARGE.

    (a) In General.--Section 3034 of title 38, United States Code, is 
amended by adding at the end the following new subsection:
    ``(e)(1) In the case of any eligible individual who has been 
prevented from pursuing a program of education under this chapter 
because the individual has not met the nature of discharge requirement 
of this chapter, the Secretary of Defense shall, upon application of 
the individual, refund to the individual the amount determined under 
paragraph (3) if the Secretary of Defense determines that the nature of 
the discharge was due to minor infractions or deficiencies.
    ``(2) Paragraph (1) shall not apply to an individual if the 
discharge was a dishonorable discharge.
    ``(3) The amount determined under this paragraph with respect to 
any individual is the excess (if any) of--
            ``(A) the sum of the amounts described in section 
        3017(b)(1) of this title with respect to the individual, over
            ``(B) the sum of the amounts described in section 
        3017(b)(2) of this title with respect to the individual.
    ``(4) The Secretary of Defense shall make the payments under this 
subsection from the funds into which the amounts described in section 
3017(b)(1) of this title were deposited.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to discharges after September 30, 2007.

SEC. 703. COMPTROLLER GENERAL REPORT ON PROVISION OF ASSISTED LIVING 
              BENEFITS FOR VETERANS.

    (a) Report Required.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Comptroller General of the 
        United States shall submit to the congressional veterans 
        affairs committees a report on the feasability and advisability 
        of the provision through the Department of Veterans Affairs of 
        assisted living benefits for veterans who otherwise qualify for 
        nursing home care through the Department in lieu of the 
        provision through the Department of nursing home care for such 
        veterans.
            (2) Elements.--The report required by paragraph (1) shall 
        include--
                    (A) a description of various current proposals for 
                the provision through the Department of assisted living 
                benefits for veterans as described in paragraph (1);
                    (B) an estimate of the costs of the various 
                proposals described under subparagraph (A), and an 
                estimate of any cost savings anticipated to be achieved 
                through the carrying out of such proposals;
                    (C) an assessment of feasability and advisability 
                of the provision through the Department of assisted 
                living benefits for veterans as described in paragraph 
                (1), including an identification of the proposal, if 
                any, described in that paragraph, that would result in 
                the most cost-effective provision through the 
                Department of assisted living benefits for veterans; 
                and
                    (D) such recommendations as the Comptroller General 
                considers appropriate regarding the provision through 
                the Department of assisted living benefits for 
                veterans.
    (b) Congressional Veterans Affairs Committees Defined.--In this 
section, the term ``congressional veterans affairs committees'' means--
            (1) the Committee on Veterans' Affairs and the Committee on 
        Appropriations of the Senate; and
            (2) the Committee on Veterans' Affairs and the Committee on 
        Appropriations of the House of Representatives.
                                 <all>
```