I 

108TH CONGRESS 

2D SESSION S. 2486 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 9, 2004 

Referred to the Committee on Veterans’ Affairs 

AN ACT 

To amend title 38, United States Code, to improve and 

extend housing, education, and other benefits under the 

laws administered by the Secretary of Veterans Affairs, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Veterans Benefits Improvement Act of 2004’’. 
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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Reference to title 38, United States Code. 

TITLE I—VETERANS EARN AND LEARN ACT 

Sec. 101. Short title. 

Sec. 102. Modification of benefit entitlement charges for certain on-job training 

programs. 

Sec. 103. Increase in benefit for individuals pursuing apprenticeship or on-job 

training. 

Sec. 104. Authority for competency-based apprenticeship programs. 

Sec. 105. Ten-year extension of delimiting period for survivors’ and dependents’ 

educational assistance for spouses of members who die on active duty. 

Sec. 106. Availability of education benefits for payment for national admissions 

exams and national exams for credit at institutions of higher 

education. 

Sec. 107. Requirement for coordination of data among the Departments of Veterans Affairs, Defense, and Labor with respect to on-job training. 

Sec. 108. Pilot program to provide on-job benefits to train Department of Veterans Affairs’ claims adjudicators. 

Sec. 109. Collection of payment for educational assistance under Montgomery 

GI Bill from members of the Selected Reserve called to active 

duty. 

Sec. 110. Technical and conforming amendments. 

TITLE II—EMPLOYMENT MATTERS 

Subtitle A—Employment and Reemployment Rights 

Sec. 201. Two-year period of continuation of employer-sponsored health care 

coverage. 

Sec. 202. Reinstatement of reporting requirements. 

Sec. 203. Requirement for employers to provide notice of rights and duties 

under USERRA. 

Sec. 204. Demonstration project for referral of USERRA claims against Federal agencies to the Office of Special Counsel. 

Subtitle B—Other Matters 

Sec. 211. Report of employment placement, retention, and advancement of recently separated servicemembers. 

TITLE III—BENEFITS MATTERS 

Sec. 301. Additional dependency and indemnity compensation for surviving 

spouses with dependent children. 

Sec. 302. Offset of veterans’ disability compensation and dependency and indemnity compensation from awards under radiation exposure 

compensation program. 

Sec. 303. Exclusion of life insurance proceeds from consideration as income for 

veterans’ pension purposes. 
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Sec. 304. Certain service-connected disability benefits authorized for persons 

disabled by treatment or vocational rehabilitation provided by 

the Department of Veterans Affairs. 

Sec. 305. Effective date of death pension. 

Sec. 306. Codification of administrative actions relating to presumptions of 

service connection for veterans exposed to ionizing radiation. 

Sec. 307. Codification of cost-of-living adjustment provided in Public Law 

108–47. 

Sec. 308. Cross-reference amendments relating to concurrent payment of retired pay and veterans’ disability compensation. 

TITLE IV—HOUSING MATTERS 

Sec. 401. Authority to provide specially adapted housing to certain disabled veterans. 

Sec. 402. Transitional housing amendments. 

Sec. 403. Increase in maximum amount of home loan guaranty for construction 

and purchase of homes and annual indexing of amount. 

Sec. 404. Extension of authority for guarantee of adjustable rate mortgages. 

Sec. 405. Extension and improvement of authority for guarantee of hybrid adjustable rate mortgages. 

Sec. 406. Termination of collection of loan fees from veterans rated eligible for 

compensation at pre-discharge rating examinations. 

Sec. 407. Three-year extension of Native American veteran housing loan pilot 

program. 

TITLE V—MATTERS RELATING TO FIDUCIARIES 

Sec. 501. Definition of fiduciary. 

Sec. 502. Inquiry, investigations, and qualification of fiduciaries. 

Sec. 503. Misuse of benefits by fiduciaries. 

Sec. 504. Additional protections for beneficiaries with fiduciaries. 

Sec. 505. Annual report. 

Sec. 506. Annual adjustment in benefits thresholds. 

Sec. 507. Effective dates. 

TITLE VI—MEMORIAL AFFAIRS MATTERS 

Sec. 601. Designation of Prisoner of War/Missing in Action National Memorial, 

Riverside National Cemetery, Riverside, California. 

Sec. 602. Lease of certain National Cemetery Administration property. 

Sec. 603. Exchanges of real property for national cemeteries. 

TITLE VII—IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF 

ACT 

Sec. 701. Clarification of meaning of ‘‘judgment’’ as used in the Act. 

Sec. 702. Requirements relating to waiver of rights under the Act. 

Sec. 703. Right of servicemember plaintiffs to request stay of civil proceedings. 

Sec. 704. Termination of leases. 

TITLE VIII—OTHER MATTERS 

Sec. 801. Principal office of United States Court of Appeals for Veterans 

Claims. 

Sec. 802. Technical amendments relating to the United States Court of Appeals 

for Veterans Claims. 
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Sec. 803. Extension of biennial report of Advisory Committee on Former Prisoners of War. 

Sec. 804. Availability of administrative and judicial redress for certain veterans 

denied opportunity to compete for Federal employment. 

Sec. 805. Report on servicemembers’ and veterans’ awareness of benefits and 

services available under laws administered by Secretary of Veterans Affairs. 

1 SEC. 2. REFERENCE TO TITLE 38, UNITED STATES CODE. 

2 Except as otherwise expressly provided, whenever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or repeal of, a section or other provi5 sion, the reference shall be considered to be made to a 

6 section or other provision of title 38, United States Code. 

7 TITLE I—VETERANS EARN AND 

8 LEARN ACT 

9 SEC. 101. SHORT TITLE. 

10 This title may be cited as the ‘‘Veterans Earn and 

11 Learn Act of 2004’’. 

12 SEC. 102. MODIFICATION OF BENEFIT ENTITLEMENT 

13 CHARGES FOR CERTAIN ON-JOB TRAINING 

14 PROGRAMS. 

15 (a) IN GENERAL.—Section 3687 is amended by add16 ing at the end the following new subsection: 

17 ‘‘(e)(1) For each month that an individual (as defined 

18 in paragraph (3)) is paid a training assistance allowance 

19 under subsection (a), the entitlement of the individual 

20 shall be charged at a percentage rate (rounded to the near21 est percent) that is equal to the ratio of— 
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1 ‘‘(A) the training assistance allowance for the 

2 month involved, to 

3 ‘‘(B) the monthly educational assistance allow4 ance otherwise payable for full-time enrollment in an 

5 educational institution.’’. 

6 ‘‘(2) For any month in which an individual fails to 

7 complete 120 hours of training, the entitlement otherwise 

8 chargeable under paragraph (1) shall be reduced in the 

9 same proportion as the monthly training assistance allow10 ance payable is reduced under subsection (b)(3). 

11 ‘‘(3) In this section, the term ‘individual’ means— 

12 ‘‘(A) an eligible veteran who is entitled to 

13 monthly educational assistance allowances payable 

14 under section 3015(e) of this title, or 

15 ‘‘(B) an eligible person who is entitled to 

16 monthly educational assistance allowances payable 

17 under section 3532(a) of this title, 

18 as the case may be.’’. 

19 (b) EFFECTIVE DATE.—The amendment made by 

20 subsection (a) shall apply with respect to months begin21 ning after September 30, 2005. 
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1 SEC. 103. INCREASE IN BENEFIT FOR INDIVIDUALS PUR2 SUING APPRENTICESHIP OR ON–JOB TRAIN3 ING. 

4 (a) MONTGOMERY GI BILL.—For months beginning 

5 on or after October 1, 2005, and before January 1, 2008, 

6 subsection (c)(1) of section 3032 of title 38, United States 

7 Code, shall be applied as if— 

8 (1) the reference to ‘‘75 percent’’ in subpara9 graph (A) were a reference to ‘‘85 percent’’; 

10 (2) the reference to ‘‘55 percent’’ in subpara11 graph (B) were a reference to ‘‘65 percent’’; and 

12 (3) the reference to ‘‘35 percent’’ in subpara13 graph (C) were a reference to ‘‘45 percent’’. 

14 (b) POST-VIETNAM ERA VETERANS’ EDUCATIONAL

15 ASSISTANCE.—For months beginning on or after October 

16 1, 2005, and before January 1, 2008, subsection (a) of 

17 section 3233 of title 38, United States Code, shall be ap18 plied as if— 

19 (1) the reference to ‘‘75 percent’’ in paragraph 

20 (1) were a reference to ‘‘85 percent’’; 

21 (2) the reference to ‘‘55 percent’’ in paragraph 

22 (2) were a reference to ‘‘65 percent’’; and 

23 (3) the reference to ‘‘35 percent’’ in paragraph 

24 (3) were a reference to ‘‘45 percent’’. 

25 (c) SURVIVORS AND DEPENDENTS EDUCATIONAL AS26 SISTANCE.—(1) For months beginning on or after October 
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1 1, 2005, and before January 1, 2008, subsection (b)(2) 

2 of section 3687 of title 38, United States Code, shall be 

3 applied as if— 

4 (A) the reference to ‘‘$574 for the first six 

5 months’’ were a reference to ‘‘$650 for the first six 

6 months’’; 

7 (B) the reference to ‘‘$429 for the second six 

8 months’’ were a reference to ‘‘$507 for the second 

9 six months’’; and 

10 (C) the reference to ‘‘$285 for the third six 

11 months’’ were a reference to ‘‘$366 for the third six 

12 months’’. 

13 (2) Subsection (d) of such section 3687 shall not 

14 apply with respect to the provisions of paragraph (1) for 

15 months occurring during fiscal year 2006. 

16 (3) For months beginning on or after January 1, 

17 2008, the Secretary shall carry out subsection (b)(2) of 

18 such section 3687 as if paragraphs (1) and (2) were not 

19 enacted into law. 

20 (d) SELECTED RESERVE MONTGOMERY GI BILL.— 

21 For months beginning on or after October 1, 2005, and 

22 before January 1, 2008, Subsection (d)(1) of section 

23 16131 of title 10, United States Code, shall be applied 

24 as if— 
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1 (1) the reference to ‘‘75 percent’’ in subpara2 graph (A) were a reference to ‘‘85 percent’’; 

3 (2) the reference to ‘‘55 percent’’ in subpara4 graph (B) were a reference to ‘‘65 percent’’; and 

5 (3) the reference to ‘‘35 percent’’ in subpara6 graph (C) were a reference to ‘‘45 percent’’. 

7 SEC. 104. AUTHORITY FOR COMPETENCY-BASED APPREN8 TICESHIP PROGRAMS. 

9 (a) IN GENERAL.—Section 3672(c) is amended— 

10 (1) by striking ‘‘(1)’’ and ‘‘(2)’’ and inserting 

11 ‘‘(A)’’ and ‘‘(B)’’, respectively; 

12 (2) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 

13 (3) by adding at the end the following new 

14 paragraphs: 

15 ‘‘(2) The period of a program of apprenticeship may 

16 be determined based upon a specific period of time (com17 monly referred to as a ‘time-based program’), based upon 

18 the demonstration of successful mastery of skills (com19 monly referred to as a ‘competency-based program’), or 

20 based upon a combination thereof. 

21 ‘‘(3)(A) In the case of a competency-based program 

22 of apprenticeship, State approving agencies shall deter23 mine the period for which payment may be made for such 

24 a program under chapters 30 and 35 of this title and 

25 chapter 1606 of title 10. In determining the period of such 
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1 a program, State approving agencies shall take into con2 sideration the approximate term of the program rec3 ommended in registered apprenticeship program stand4 ards recognized by the Secretary of Labor. 

5 ‘‘(B) The sponsor of a competency-based program of 

6 apprenticeship shall provide notice to the State approving 

7 agency involved of any such standards that may apply to 

8 the program and the proposed approximate period of 

9 training under the program. 

10 ‘‘(4) The sponsor of a competency-based program of 

11 apprenticeship shall notify the Secretary upon the success12 ful completion of a program of apprenticeship by an indi13 vidual under chapter 30 or 35 of this title, or chapter 1606 

14 of title 10, as the case may be.’’. 

15 (b) INCREASED USE OF APPRENTICESHIPS.—Section 

16 3672(d)(1) is amended by adding at the end the following 

17 new sentence: ‘‘The Secretary of Labor shall provide as18 sistance and services to the Secretary, and to State ap19 proving agencies, to increase the use of apprenticeships.’’. 

20 (c) FUNDING FOR DEPARTMENT COMPUTER SYSTEM

21 MODIFICATIONS.—From amounts appropriated to the De22 partment of Veterans Affairs for fiscal year 2005 for read23 justment benefits, the Secretary of Veterans Affairs shall 

24 use an amount not to exceed $3,000,000 to modify com25 puter systems and to develop procedures required to carry 
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1 out the amendments made by subsection (a) and sections 

2 102 and 103. 

3 SEC. 105. TEN-YEAR EXTENSION OF DELIMITING PERIOD 

4 FOR SURVIVORS’ AND DEPENDENTS’ EDU5 CATIONAL ASSISTANCE FOR SPOUSES OF 

6 MEMBERS WHO DIE ON ACTIVE DUTY. 

7 Section 3512(b)(1) is amended— 

8 (1) in subparagraph (A), by striking ‘‘in sub9 paragraph (B)’’ and inserting ‘‘in subparagraph (B) 

10 or (C)’’; and 

11 (2) by adding at the end the following new sub12 paragraph: 

13 ‘‘(C) Notwithstanding subparagraph (A), an eligible 

14 person referred to in that subparagraph who is made eligi15 ble under section 3501(a)(1)(B) of this title by reason of 

16 the death of a person on active duty may be afforded edu17 cational assistance under this chapter during the 20-year 

18 period beginning on the date (as determined by the Sec19 retary) such person becomes an eligible person within the 

20 meaning of such section.’’. 
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1 SEC. 106. AVAILABILITY OF EDUCATION BENEFITS FOR 

2 PAYMENT FOR NATIONAL ADMISSIONS 

3 EXAMS AND NATIONAL EXAMS FOR CREDIT 

4 AT INSTITUTIONS OF HIGHER EDUCATION. 

5 (a) COVERED EXAMS.—Sections 3452(b) and 

6 3501(a)(5) are each amended by adding at the end the 

7 following new sentence: ‘‘Such term also includes national 

8 tests for admission to institutions of higher learning or 

9 graduate schools (such as the Scholastic Aptitude Test 

10 (SAT), Law School Admission Test (LSAT), Graduate 

11 Record Exam (GRE), and Graduate Management Admis12 sion Test (GMAT)) and national tests providing an oppor13 tunity for course credit at institutions of higher learning 

14 (such as the Advanced Placement (AP) exam and College15 Level Examination Program (CLEP)).’’. 

16 (b) AMOUNT OF PAYMENT.— 

17 (1) CHAPTER 30.—Section 3032 is amended by 

18 adding at the end the following new subsection: 

19 ‘‘(g)(1) Subject to paragraph (3), the amount of edu20 cational assistance payable under this chapter for a na21 tional test for admission or national test providing an op22 portunity for course credit at institutions of higher learn23 ing described in section 3452(b) of this title is the amount 

24 of the fee charged for the test. 

25 ‘‘(2) The number of months of entitlement charged 

26 in the case of any individual for a test described in para-
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1 graph (1) is equal to the number (including any fraction) 

2 determined by dividing the total amount of educational as3 sistance paid such individual for such test by the full-time 

4 monthly institutional rate of educational assistance, except 

5 for paragraph (1), such individual would otherwise be paid 

6 under subsection (a)(1), (b)(1), (d), or (e)(1) of section 

7 3015 of this title, as the case may be. 

8 ‘‘(3) In no event shall payment of educational assist9 ance under this subsection for a test described in para10 graph (1) exceed the amount of the individual’s available 

11 entitlement under this chapter.’’. 

12 (2) CHAPTER 32.—Section 3232 is amended by 

13 adding at the end the following new subsection: 

14 ‘‘(d)(1) Subject to paragraph (3), the amount of edu15 cational assistance payable under this chapter for a na16 tional test for admission or national test providing an op17 portunity for course credit at institutions of higher learn18 ing described in section 3452(b) of this title is the amount 

19 of the fee charged for the test. 

20 ‘‘(2) The number of months of entitlement charged 

21 in the case of any individual for a test described in para22 graph (1) is equal to the number (including any fraction) 

23 determined by dividing the total amount of educational as24 sistance paid such individual for such test by the full-time 

25 monthly institutional rate of educational assistance, except 
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1 for paragraph (1), such individual would otherwise be paid 

2 under this chapter. 

3 ‘‘(3) In no event shall payment of educational assist4 ance under this subsection for a test described in para5 graph (1) exceed the amount of the individual’s available 

6 entitlement under this chapter.’’. 

7 (3) CHAPTER 35.—Section 3532 is amended by 

8 adding at the end the following new subsection: 

9 ‘‘(g)(1) Subject to paragraph (3), the amount of edu10 cational assistance payable under this chapter for a na11 tional test for admission or national test providing an op12 portunity for course credit at institutions of higher learn13 ing described in section 3501(a)(5) of this title is the 

14 amount of the fee charged for the test. 

15 ‘‘(2) The number of months of entitlement charged 

16 in the case of any individual for a test described in para17 graph (1) is equal to the number (including any fraction) 

18 determined by dividing the total amount of educational as19 sistance paid such individual for such test by the full-time 

20 monthly institutional rate of educational assistance, except 

21 for paragraph (1), such individual would otherwise be paid 

22 under this chapter. 

23 ‘‘(3) In no event shall payment of educational assist24 ance under this subsection for a test described in para-
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1 graph (1) exceed the amount of the individual’s available 

2 entitlement under this chapter.’’. 

3 SEC. 107. REQUIREMENT FOR COORDINATION OF DATA 

4 AMONG THE DEPARTMENTS OF VETERANS 

5 AFFAIRS, DEFENSE, AND LABOR WITH RE6 SPECT TO ON-JOB TRAINING. 

7 Section 3694 is amended— 

8 (1) by striking ‘‘In carrying out’’ and inserting 

9 ‘‘(a) IN GENERAL.—In carrying out’’; and 

10 (2) by adding at the end the following new sub11 section: 

12 ‘‘(b) COORDINATION OF INFORMATION AMONG THE

13 DEPARTMENTS OF VETERANS AFFAIRS, DEFENSE, AND

14 LABOR WITH RESPECT TO ON-JOB TRAINING.—At the 

15 time of a servicemember’s discharge or release from active 

16 duty service, the Secretary of Defense shall furnish to the 

17 Secretary such pertinent information concerning each reg18 istered apprenticeship pursued by the servicemember dur19 ing the period of active duty service of the servicemember. 

20 The Secretary, in conjunction with the Secretary of Labor, 

21 shall encourage and assist States and private organiza22 tions to give credit to servicemembers for the registered 

23 apprenticeship program so pursued in the case of any re24 lated apprenticeship program the servicemember may pur25 sue as a civilian.’’. 
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1 SEC. 108. PILOT PROGRAM TO PROVIDE ON-JOB BENEFITS 

2 TO TRAIN DEPARTMENT OF VETERANS AF3 FAIRS’ CLAIMS ADJUDICATORS. 

4 Section 3677 is amended by adding at the end the 

5 following new subsection: 

6 ‘‘(d)(1) The Secretary may conduct a pilot program 

7 under which the Secretary operates a program of training 

8 on the job under this section for a period (notwithstanding 

9 subsection (c)(2)) of up to three years in duration to train 

10 employees of the Department to become qualified adju11 dicators of claims for compensation, dependency and in12 demnity compensation, and pension. 

13 ‘‘(2)(A) Not later than three years after the imple14 mentation of the pilot project, the Secretary shall submit 

15 to Congress an initial report on the pilot project. The re16 port shall include an assessment of the usefulness of the 

17 program in recruiting and retaining of personnel of the 

18 Department as well as an assessment of the value of the 

19 program as a training program. 

20 ‘‘(B) Not later than 18 months after the date on 

21 which the initial report under subparagraph (A) is sub22 mitted, the Secretary shall submit to Congress a final re23 port on the pilot project. The final report shall include 

24 recommendations of the Secretary with respect to continu25 ation of the pilot project and with respect to expansion 
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1 of the types of claims for which the extended period of 

2 on the job training is available to train such employees.’’. 

3 SEC. 109. COLLECTION OF PAYMENT FOR EDUCATIONAL 

4 ASSISTANCE UNDER MONTGOMERY GI BILL 

5 FROM MEMBERS OF THE SELECTED RESERVE 

6 CALLED TO ACTIVE DUTY. 

7 (a) ACTIVE DUTY PROGRAM.—Section 3011(b) is 

8 amended— 

9 (1) by striking ‘‘The basic pay’’ and inserting 

10 ‘‘(1) Except as provided in paragraph (2), the basic 

11 pay’’; 

12 (2) by designating the second sentence as para13 graph (3) and in that paragraph by striking ‘‘this 

14 chapter’’ and inserting ‘‘this subsection’’; and 

15 (3) by inserting after paragraph (1), as so des16 ignated, the following new paragraph: 

17 ‘‘(2) In the case of an individual covered by para18 graph (1) who is a member of the Selected Reserve, the 

19 Secretary of Defense shall collect from the individual an 

20 amount equal to $1,200 not later than one year after com21 pletion by the individual of the two years of service on 

22 active duty providing the basis for such entitlement. The 

23 Secretary of Defense may collect such amount through re24 ductions in basic pay in accordance with paragraph (1) 
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1 or through such other method as the Secretary of Defense 

2 considers appropriate.’’. 

3 (b) SELECTED RESERVE PROGRAM.—Section 

4 3012(c) is amended— 

5 (1) by striking ‘‘The basic pay’’ and inserting 

6 ‘‘(1) Except as provided in paragraph (2), the basic 

7 pay’’; 

8 (2) by designating the second sentence as para9 graph (3) and in that paragraph by striking ‘‘this 

10 chapter’’ and inserting ‘‘this subsection’’; and 

11 (3) by inserting after paragraph (1), as so des12 ignated, the following new paragraph: 

13 ‘‘(2) In the case of an individual covered by para14 graph (1) who is a member of the Selected Reserve, the 

15 Secretary of Defense shall collect from the individual an 

16 amount equal to $1,200 not later than one year after com17 pletion by the individual of the two years of service on 

18 active duty providing the basis for such entitlement. The 

19 Secretary of Defense may collect such amount through re20 ductions in basic pay in accordance with paragraph (1) 

21 or through such other method as the Secretary of Defense 

22 considers appropriate.’’. 

23 SEC. 110. TECHNICAL AND CONFORMING AMENDMENTS. 

24 (a) DEFINITION OF TRAINING ESTABLISHMENT.— 

25 Section 3452(e), as amended by section 301 of the Vet-
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1 erans Benefits Act of 2003 (Public Law 108–183; 117 

2 Stat. 2658), is amended in paragraph (5) to read as fol3 lows: 

4 ‘‘(5) The sponsor of a program of apprentice5 ship.’’. 

6 (b) CLARIFICATION OF APPLICABLE APPRENTICE7 SHIP STANDARDS.—(1) Section 3672(c), as amended by 

8 section 105(a), is amended in subparagraph (A) by insert9 ing ‘‘apprenticeship’’ before ‘‘standards’’. 

10 (2) Section 3672(d)(1) is amended by striking ‘‘of 

11 programs of training on the job (including programs of 

12 apprenticeship)’’ and inserting ‘‘of apprenticeship and on 

13 the job training programs’’. 

14 (c) RECORD-KEEPING REQUIREMENTS FOR QUALI15 FIED PROVIDERS OF ENTREPRENEURSHIP COURSES.— 

16 (1) Section 3675(c) is amended by adding at the end the 

17 following new paragraph: 

18 ‘‘(4) Notwithstanding paragraph (3), a qualified pro19 vider of entrepreneurship courses shall maintain such 

20 records as the Secretary determines to be necessary to 

21 comply with reporting requirements that apply under sec22 tion 3684(a)(1) of this title with respect to eligible persons 

23 and veterans enrolled in an entrepreneurship course of24 fered by the provider.’’. 
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1 (2) The amendment made by paragraph (1) shall 

2 take effect as if included in the enactment of section 

3 305(a) of the Veterans Benefits Act of 2003 (Public Law 

4 108–183; 117 Stat. 2660). 

5 (d) AUTHORITY TO PAY REPORTING FEE.—Section 

6 3684(c) is amended by striking ‘‘or to any joint appren7 ticeship training committee acting as a training establish8 ment’’ and inserting ‘‘or to the sponsor of a program of 

9 apprenticeship’’. 

10 TITLE II—EMPLOYMENT 

11 MATTERS 

12 Subtitle A—Employment and 

13 Reemployment Rights 

14 SEC. 201. TWO-YEAR PERIOD OF CONTINUATION OF EM15 PLOYER-SPONSORED HEALTH CARE COV16 ERAGE. 

17 (a) IMPROVEMENT IN PERIOD OF COVERAGE.—Sub18 section (a)(1)(A) of section 4317 is amended by striking 

19 ‘‘18-month period’’ and inserting ‘‘24-month period’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 subsection (a) shall apply to elections made under section 

22 4317 of title 38, United States Code, on or after the date 

23 of the enactment of this Act. 
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1 SEC. 202. REINSTATEMENT OF REPORTING REQUIRE2 MENTS. 

3 Section 4332 is amended in the matter preceding 

4 paragraph (1) by striking ‘‘no later than February 1, 

5 1996, and annually thereafter through 2000’’ and insert6 ing ‘‘no later than February 1, 2005, and annually there7 after’’. 

8 SEC. 203. REQUIREMENT FOR EMPLOYERS TO PROVIDE NO9 TICE OF RIGHTS AND DUTIES UNDER 

10 USERRA. 

11 (a) NOTICE.—Chapter 43 is amended by adding at 

12 the end the following new section: 

13 ‘‘§ 4334. Notice of rights and duties 

14 ‘‘(a) REQUIREMENT TO PROVIDE NOTICE.—Each 

15 employer shall provide to persons entitled to rights and 

16 benefits under this chapter a notice of the rights, benefits, 

17 and obligations of such persons and such employers under 

18 this chapter. The requirement for the provision of notice 

19 under this section may be met by the posting of the notice 

20 where employers customarily place notices for employees. 

21 ‘‘(b) CONTENT OF NOTICE.—The Secretary shall 

22 provide to employers the text of the notice to be provided 

23 under this section.’’. 
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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 at the beginning of such chapter is amended by adding 

3 at the end the following new item: 

‘‘4334. Notice of rights and duties.’’. 

4 (c) IMPLEMENTATION.—(1) Not later than the date 

5 that is 90 days after the date of the enactment of this 

6 Act, the Secretary of Labor shall make available to em7 ployers the notice required under section 4334 of title 38, 

8 United States Code, as added by subsection (a). 

9 (2) The amendments made by this section shall apply 

10 to employers under chapter 43 of title 38, United States 

11 Code, on and after the first date referred to in paragraph 

12 (1). 

13 SEC. 204. DEMONSTRATION PROJECT FOR REFERRAL OF 

14 USERRA CLAIMS AGAINST FEDERAL AGEN15 CIES TO THE OFFICE OF SPECIAL COUNSEL. 

16 (a) ESTABLISHMENT OF PROJECT.—The Secretary 

17 of Labor and the Office of Special Counsel shall carry out 

18 a demonstration project under which certain claims 

19 against Federal executive agencies under the Uniformed 

20 Services Employment and Reemployment Rights Act 

21 under chapter 43 of title 38, United States Code, are re22 ferred to, or otherwise received by, the Office of Special 

23 Counsel for assistance, including investigation and resolu24 tion of the claim as well as enforcement of rights with 

25 respect to the claim. 
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1 (b) REFERRAL OF ALL PROHIBITED PERSONNEL AC2 TION CLAIMS TO THE OFFICE OF SPECIAL COUNSEL.— 

3 (1) Under the demonstration project, the Office of Special 

4 Counsel shall receive and investigate all claims under the 

5 Uniformed Services Employment and Reemployment 

6 Rights Act with respect to Federal executive agencies in 

7 cases where the Office of Special Counsel has jurisdiction 

8 over related claims pursuant to section 1212 of title 5, 

9 United States Code. 

10 (2) For purposes of paragraph (1), a related claim 

11 is a claim involving the same Federal executive agency and 

12 the same or similar factual allegations or legal issues as 

13 those being pursued under a claim under the Uniformed 

14 Services Employment and Reemployment Rights Act. 

15 (c) REFERRAL OF OTHER CLAIMS AGAINST FED16 ERAL EXECUTIVE AGENCIES.—(1) Under the demonstra17 tion project, the Secretary— 

18 (A) shall refer to the Office of Special Counsel 

19 all claims described in paragraph (2) made during 

20 the period of the demonstration project; and 

21 (B) may refer any claim described in paragraph 

22 (2) filed before the demonstration project that is 

23 pending before the Secretary at the beginning of the 

24 demonstration project. 
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1 (2) A claim referred to in paragraph (1) is a claim 

2 under chapter 43 of title 38, United States Code, against 

3 a Federal executive agency by a claimant with a social se4 curity account number with an odd number as its terminal 

5 digit, or, in the case of a claim that does not contain a 

6 social security account number, a case number assigned 

7 to the claim with an odd number as its terminal digit. 

8 (d) ADMINISTRATION OF DEMONSTRATION

9 PROJECT.—(1) The Office of Special Counsel shall admin10 ister the demonstration project. The Secretary shall co11 operate with the Office of Special Counsel in carrying out 

12 the demonstration project. 

13 (2) In the case of any claim referred, or otherwise 

14 received by, to the Office of Special Counsel under the 

15 demonstration project, any reference to the ‘‘Secretary’’ 

16 in sections 4321, 4322, and 4326 of title 38, United 

17 States Code, is deemed a reference to the ‘‘Office of Spe18 cial Counsel’’. 

19 (3) In the case of any claim referred to, or otherwise 

20 received by, the Office of Special Counsel under the dem21 onstration project, the Office of Special Counsel shall re22 tain administrative jurisdiction over the claim. 

23 (e) PERIOD OF PROJECT.—The demonstration 

24 project shall be carried out during the period beginning 
24 

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1 on the date that is 60 days after the date of the enactment 

2 of this Act, and ending on September 30, 2007. 

3 (f) EVALUATIONS AND REPORT.—(1) The Comp4 troller General of the United States shall conduct periodic 

5 evaluations of the demonstration project under this sec6 tion. 

7 (2) Not later than April 1, 2007, the Comptroller 

8 General shall submit to Congress a report on the evalua9 tions conducted under paragraph (1). The report shall in10 clude the following information and recommendations: 

11 (A) A description of the operation and results 

12 of the demonstration program, including— 

13 (i) the number of claims described in sub14 section (c) referred to, or otherwise received by, 

15 the Office of Special Counsel, and the number 

16 of such claims referred to the Secretary of 

17 Labor; and 

18 (ii) for each Federal executive agency, the 

19 number of claims resolved, the type of correc20 tive action obtained, the period of time for final 

21 resolution of the claim, and the results ob22 tained. 

23 (B) An assessment of whether referral to the 

24 office of special counsel of claims under the dem25 onstration project— 
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1 (i) improved services to servicemembers 

2 and veterans; or 

3 (ii) significantly reduced or eliminated du4 plication of effort and unintended delays in re5 solving meritorious claims of those 

6 servicemembers and veterans. 

7 (C) An assessment of the feasibility and advis8 ability of referring all claims under chapter 43 of 

9 title 38, United States Code, against Federal execu10 tive agencies to the Office of Special Counsel for in11 vestigation and resolution. 

12 (D) Such other recommendations for adminis13 trative action or legislation as the Comptroller Gen14 eral determines appropriate. 

15 (g) DEFINITIONS.—In this section: 

16 (1) The term ‘‘Office of Special Counsel’’ 

17 means the Office of Special Counsel established by 

18 section 1211 of title 5, United States Code. 

19 (2) The term ‘‘Secretary’’ means the Secretary 

20 of Labor. 

21 (3) The term ‘‘Federal executive agency’’ has 

22 the meaning given that term in section 4303(5) of 

23 title 38, United States Code. 
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1 Subtitle B—Other Matters 

2 SEC. 211. REPORT OF EMPLOYMENT PLACEMENT, RETEN3 TION, AND ADVANCEMENT OF RECENTLY 

4 SEPARATED SERVICEMEMBERS. 

5 (a) CONTRACT FOR REPORT.—Not later than 180 

6 days after the date of the enactment of this Act, the Sec7 retary of Veterans Affairs shall enter into a contract with 

8 a qualified entity to conduct a study of and prepare a re9 port on the employment histories of recently separated 

10 servicemembers. 

11 (b) CONTENT OF REPORT.—(1) The study conducted 

12 pursuant to subsection (a) shall consist of an analysis of 

13 employment-related data that have been collected with re14 spect to recently separated servicemembers. 

15 (2) In conducting the study, the qualified entity 

16 shall— 

17 (A) determine whether the employment ob18 tained by recently separated servicemembers is com19 mensurate with training and education of those 

20 servicemembers; 

21 (B) determine whether recently separated 

22 servicemembers received educational assistance or 

23 training and rehabilitation under programs adminis24 tered by the Secretary of Veterans Affairs under 
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1 chapter 30 or 31 of title 38, United States Code, or 

2 under chapter 1606 of title 10, United States Code; 

3 (C) determine whether transition assistance 

4 services provided to recently separated 

5 servicemembers assisted those servicemembers in ob6 taining civilian employment; 

7 (D) analyze trends in hiring of veterans by the 

8 private sector; and 

9 (E) identify recently separated servicemembers 

10 who have reached senior level management positions. 

11 (c) USE OF DATA.—In conducting the study under 

12 subsection (a), the qualified entity shall review data com13 piled and reported by the Bureau of Labor Statistics and 

14 shall collect additional data on the employment histories 

15 of recently separated servicemembers available from such 

16 other sources as the qualified entity determines to be ap17 propriate. 

18 (d) CONTRACT REQUIREMENTS.—(1) The contract 

19 entered into under subsection (a) shall contain such terms 

20 and conditions as the Secretary may require. The contract 

21 shall require that the report on the study be submitted 

22 to the Secretary not later than 2 years after the date on 

23 which the contract was entered into. 

24 (2) The report required under subsection (a) shall 

25 contain the findings and conclusions of the qualified entity 
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1 on the study and specific recommendations to improve em2 ployment opportunities for veterans recently separated 

3 from service in the Armed Forces, including, if appro4 priate, recommendations for— 

5 (A) the establishment of networks of contacts 

6 for employment of such veterans in the private sec7 tor; 

8 (B) outreach to private sector leaders on the 

9 merits and sound business practice of hiring such 

10 veterans; and 

11 (C) additional methods to facilitate communica12 tion between private sector employers and such vet13 erans who are seeking employment. 

14 (e) FUNDING.—Payment by the Secretary for the 

15 contract entered into under subsection (a)— 

16 (1) shall be made from the Department of Vet17 erans Affairs appropriations account from which 

18 payments for readjustment benefits are made; and 

19 (2) may not exceed $490,000. 

20 (f) DEFINITIONS.—In this section: 

21 (1) The term ‘‘qualified entity’’ means an entity 

22 or organization that meets the following require23 ments: 

24 (A) Demonstrated experience in conducting 

25 employment surveys of recently separated 
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1 servicemembers, including Internet-based sur2 veys, that meet such quality assurance require3 ments as the Secretary determines appropriate. 

4 (B) Demonstrated familiarity with veteran 

5 employment matters. 

6 (C) Demonstrated ability in developing 

7 plans to market veterans as employment assets. 

8 (D) Demonstrated ability to acquire serv9 ices at no cost from other organizations, such 

10 as technology, staff services, and advertising 

11 services. 

12 (E) Demonstrated ability to develop rela13 tionships, establish employment networks, and 

14 facilitate interaction between private and public 

15 sector leaders and veterans. 

16 (2) The term ‘‘employment history’’ means, 

17 with respect to a recently separated servicemember, 

18 training, placement, retention, and advancement in 

19 employment of that servicemember. 

20 (3) The term ‘‘recently separated 

21 servicemember’’ means any veteran (as defined in 

22 section 101(2) of title 38, United States Code) dis23 charged or released from active duty in the Armed 

24 Forces of the United States during the 16-year pe25 riod beginning on January 1, 1990. 
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1 TITLE III—BENEFITS MATTERS 

2 SEC. 301. ADDITIONAL DEPENDENCY AND INDEMNITY COM3 PENSATION FOR SURVIVING SPOUSES WITH 

4 DEPENDENT CHILDREN. 

5 (a) ADDITIONAL DEPENDENCY AND INDEMNITY

6 COMPENSATION.—Section 1311 is amended by adding at 

7 the end the following new subsection: 

8 ‘‘(e)(1) Subject to paragraphs (2) and (3), if there 

9 is a surviving spouse with one or more children below the 

10 age of 18, the dependency and indemnity compensation 

11 paid monthly to the surviving spouse shall be increased 

12 by $250, regardless of the number of such children. 

13 ‘‘(2) Dependency and indemnity compensation shall 

14 be increased under this subsection only for months occur15 ring during the two-year period beginning on the date on 

16 which entitlement to dependency and indemnity compensa17 tion commenced. 

18 ‘‘(3) The increase in dependency and indemnity com19 pensation of a surviving spouse under this subsection shall 

20 cease beginning with the first month commencing after the 

21 month in which all children of the surviving spouse have 

22 attained the age of 18. 

23 ‘‘(4) Dependency and indemnity compensation under 

24 this subsection is in addition to any other dependency and 

25 indemnity compensation payable under this chapter.’’. 
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1 (b) EFFECTIVE DATE.—Subsection (e) of section 

2 1311 of title 38, United States Code, as added by sub3 section (a), shall take effect with respect to payments for 

4 the first month beginning after the date of the enactment 

5 of this Act. 

6 SEC. 302. OFFSET OF VETERANS’ DISABILITY COMPENSA7 TION AND DEPENDENCY AND INDEMNITY 

8 COMPENSATION FROM AWARDS UNDER RADI9 ATION EXPOSURE COMPENSATION PROGRAM. 

10 (a) OFFSET IN LIEU OF FORFEITURE FROM DIS11 ABILITY COMPENSATION.—Subsection (c) of section 1112 

12 is amended by adding at the end the following new para13 graph: 

14 ‘‘(4) A radiation-exposed veteran who receives a pay15 ment under the provisions of the Radiation Exposure 

16 Compensation Act of 1990 (42 U.S.C. 2210 note) shall 

17 not be deprived, by reason of the receipt of that payment, 

18 of receipt of compensation to which that veteran is entitled 

19 by reason of paragraph (1), but there shall be deducted 

20 from payment of such compensation the amount of the 

21 payment under that Act.’’. 

22 (b) OFFSET IN LIEU OF FORFEITURE FROM DE23 PENDENCY AND INDEMNITY COMPENSATION.—Section 

24 1310 is amended by adding at the end the following new 

25 paragraph: 
32 

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1 ‘‘(c) A person who receives a payment under the pro2 visions of the Radiation Exposure Compensation Act of 

3 1990 (42 U.S.C. 2210 note) shall not be deprived, by rea4 son of the receipt of that payment, of receipt of depend5 ency and indemnity compensation to which that person is 

6 otherwise entitled, but there shall be deducted from pay7 ment of such dependency and indemnity compensation the 

8 amount of the payment under that Act.’’. 

9 (c) EFFECTIVE DATE.—Paragraph (4) of section 

10 1112(c) of title 38, United States Code, as added by sub11 section (a), shall take effect with respect to compensation 

12 payments for months beginning after March 26, 2002. 

13 Subsection (c) of section 1310 of such title, as added by 

14 subsection (b), shall take effect with respect to dependency 

15 and indemnity compensation payments for months begin16 ning after March 26, 2002. 

17 SEC. 303. EXCLUSION OF LIFE INSURANCE PROCEEDS 

18 FROM CONSIDERATION AS INCOME FOR VET19 ERANS’ PENSION PURPOSES. 

20 Section 1503(a) is amended— 

21 (1) by striking ‘‘and’’ at the end of paragraph 

22 (9); 

23 (2) by striking the period at the end of the 

24 paragraph (10) and inserting ‘‘; and’’; and 
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1 (3) by adding at the end the following new 

2 paragraph: 

3 ‘‘(11) lump-sum proceeds of any life insurance 

4 policy on a veteran, for purposes of pension under 

5 subchapter III of this chapter.’’. 

6 SEC. 304. CERTAIN SERVICE-CONNECTED DISABILITY BEN7 EFITS AUTHORIZED FOR PERSONS DISABLED 

8 BY TREATMENT OR VOCATIONAL REHABILI9 TATION PROVIDED BY THE DEPARTMENT OF 

10 VETERANS AFFAIRS. 

11 (a) AUTHORIZED BENEFITS.—Section 1151 is 

12 amended by adding at the end the following new sub13 section: 

14 ‘‘(c) A qualifying additional disability under this sec15 tion shall be treated in the same manner as if it were a 

16 service-connected disability for purposes of the following 

17 provisions of this title: 

18 ‘‘(1) Chapter 21, relating to specially adapted 

19 housing. 

20 ‘‘(2) Chapter 39, relating to automobiles and 

21 adaptive equipment.’’. 

22 (b) EFFECTIVE DATE.—Subsection (c) of section 

23 1151 of title 38, United States Code, as added by sub24 section (a), shall apply with respect to eligibility for bene-
34 

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1 fits and services provided by the Secretary of Veterans Af2 fairs on or after the date of the enactment of this Act. 

3 (c) ADMINISTRATION OF OFFSET PROVISION.—Sub4 section (b) of section 1151 is amended— 

5 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; 

6 (2) by inserting ‘‘(except as otherwise provided 

7 in paragraph (2))’’ after ‘‘service-connected, then’’; 

8 and 

9 (3) by adding at the end the following new 

10 paragraph: 

11 ‘‘(2) In the case of a judgment, settlement, or com12 promise covered by paragraph (1) that becomes final on 

13 or after the date of the enactment of this paragraph and 

14 that includes an amount that is specifically designated for 

15 a purpose for which benefits are provided under chapter 

16 21 or 39 of this title (hereinafter in this paragraph re17 ferred to as the ‘offset amount’), if such judgment, settle18 ment, or compromise becomes final before the date of the 

19 award of benefits under chapter 21 or 39 for the purpose 

20 for which the offset amount was specifically designated— 

21 ‘‘(A) the amount of such award shall be re22 duced by the offset amount; and 

23 ‘‘(B) if the offset amount is greater than the 

24 amount of such award, the excess amount received 

25 pursuant to the judgment, settlement or com-
35 

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1 promise, shall be offset against benefits otherwise 

2 payable under this chapter.’’. 

3 SEC. 305. EFFECTIVE DATE OF DEATH PENSION. 

4 Section 5110(d) is amended— 

5 (1) by striking ‘‘(1)’’; 

6 (2) by striking ‘‘death compensation or depend7 ency and indemnity compensation’’ and inserting 

8 ‘‘death compensation, dependency and indemnity 

9 compensation, or death pension’’; and 

10 (3) by striking paragraph (2). 

11 SEC. 306. CODIFICATION OF ADMINISTRATIVE ACTIONS RE12 LATING TO PRESUMPTIONS OF SERVICE CON13 NECTION FOR VETERANS EXPOSED TO ION14 IZING RADIATION. 

15 (a) COVERED DISEASES.—Subsection (c)(2) of sec16 tion 1112 is amended by adding at the end the following 

17 new subparagraphs: 

18 ‘‘(Q) Cancer of the bone. 

19 ‘‘(R) Cancer of the brain. 

20 ‘‘(S) Cancer of the colon. 

21 ‘‘(T) Cancer of the lung. 

22 ‘‘(U) Cancer of the ovary.’’. 

23 (b) COVERED RADIATION-RISK ACTIVITIES.—Sub24 section (c)(3)(B) of such section is amended by adding 

25 at the end the following new clause: 
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1 ‘‘(iv) Service in a capacity which, if per2 formed as an employee of the Department of 

3 Energy, would qualify the individual for inclu4 sion as a member of the Special Exposure Co5 hort under section 3621(14) of the Energy Em6 ployees Occupational Illness Compensation Pro7 gram Act of 2000 (42 U.S.C. 7384l(14)).’’. 

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

9 this section shall take effect as of March 26, 2002. 

10 SEC. 307. CODIFICATION OF COST-OF-LIVING ADJUSTMENT 

11 PROVIDED IN PUBLIC LAW 108–47. 

12 (a) VETERANS’ DISABILITY COMPENSATION.—Sec13 tion 1114 is amended— 

14 (1) by striking ‘‘$104’’ in subsection (a) and in15 serting ‘‘$106’’; 

16 (2) by striking ‘‘$201’’ in subsection (b) and in17 serting ‘‘$205’’; 

18 (3) by striking ‘‘$310’’ in subsection (c) and in19 serting ‘‘$316’’; 

20 (4) by striking ‘‘$445’’ in subsection (d) and in21 serting ‘‘$454’’; 

22 (5) by striking ‘‘$633’’ in subsection (e) and in23 serting ‘‘$646’’; 

24 (6) by striking ‘‘$801’’ in subsection (f) and in25 serting ‘‘$817’’; 
37 

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1 (7) by striking ‘‘$1,008’’ in subsection (g) and 

2 inserting ‘‘$1,029’’; 

3 (8) by striking ‘‘$1,171’’ in subsection (h) and 

4 inserting ‘‘$1,195’’; 

5 (9) by striking ‘‘$1,317’’ in subsection (i) and 

6 inserting ‘‘$1,344’’; 

7 (10) by striking ‘‘$2,193’’ in subsection (j) and 

8 inserting ‘‘$2,239’’; 

9 (11) in subsection (k)— 

10 (A) by striking ‘‘$81’’ both places it ap11 pears and inserting ‘‘$82’’; and 

12 (B) by striking ‘‘$2,728’’ and ‘‘$3,827’’ 

13 and inserting ‘‘$2,785’’ and ‘‘$3,907’’, respec14 tively; 

15 (12) by striking ‘‘$2,728’’ in subsection (l) and 

16 inserting ‘‘$2,785’’; 

17 (13) by striking ‘‘$3,010’’ in subsection (m) 

18 and inserting ‘‘$3,073’’; 

19 (14) by striking ‘‘$3,425’’ in subsection (n) and 

20 inserting ‘‘$3,496’’; 

21 (15) by striking ‘‘$3,827’’ each place it appears 

22 in subsections (o) and (p) and inserting ‘‘$3,907’’; 

23 (16) by striking ‘‘$1,643’’ and ‘‘$2,446’’ in sub24 section (r) and inserting ‘‘$1,677’’ and ‘‘$2,497’’, 

25 respectively; and 
38 

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1 (17) by striking ‘‘$2,455’’ in subsection (s) and 

2 inserting ‘‘$2,506’’. 

3 (b) ADDITIONAL COMPENSATION FOR DEPEND4 ENTS.—Section 1115(1) is amended— 

5 (1) by striking ‘‘$125’’ in subparagraph (A) 

6 and inserting ‘‘$127’’; 

7 (2) by striking ‘‘$215’’ and ‘‘$64’’ in subpara8 graph (B) and inserting ‘‘$219’’ and ‘‘$65’’, respec9 tively; 

10 (3) by striking ‘‘$85’’ and ‘‘$64’’ in subpara11 graph (C) and inserting ‘‘$86’’ and ‘‘$65’’, respec12 tively; 

13 (4) by striking ‘‘$101’’ in subparagraph (D) 

14 and inserting ‘‘$103’’; 

15 (5) by striking ‘‘$237’’ in subparagraph (E) 

16 and inserting ‘‘$241’’; and 

17 (6) by striking ‘‘$198’’ in subparagraph (F) 

18 and inserting ‘‘$202’’. 

19 (c) CLOTHING ALLOWANCE FOR CERTAIN DISABLED

20 VETERANS.—Section 1162 is amended by striking ‘‘$588’’ 

21 and inserting ‘‘$600’’. 

22 (d) DEPENDENCY AND INDEMNITY COMPENSATION

23 FOR SURVIVING SPOUSES.—(1) Section 1311(a) is amend24 ed— 
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1 (A) by striking ‘‘$948’’ in paragraph (1) and 

2 inserting ‘‘$967’’; and 

3 (B) by striking ‘‘$204’’ in paragraph (2) and 

4 inserting ‘‘$208’’. 

5 (2) The table in section 1311(a)(3) is amended to 

6 read as follows: 

Pay grade Monthly 

rate Pay grade Monthly rate 

E–1 ................................ $967 W–4 ............................... $1,157 

E–2 ............................... $967 O–1 ................................ $1,022 

E–3 ............................... $967 O–2 ................................ $1,056 

E–4 ............................... $967 O–3 ................................ $1,130 

E–5 ................................ $967 O–4 ................................ $1,195 

E–6 ............................... $967 O–5 ................................ $1,316 

E–7 ............................... $1,000 O–6 ................................ $1,483 

E–8 ................................ $1,056 O–7 ................................ $1,602 

E–9 ............................... $1,1021 O–8 ................................ $1,758 

W–1 ............................... $1,022 O–9 ................................ $1,881 

W–2 ............................... $1,063 O–10 .............................. $2,0632

W–3 ............................... $1,094 ........................................ ..............

1 If the veteran served as sergeant major of the Army, senior enlisted advisor of the Navy, 

chief master sergeant of the Air Force, sergeant major of the Marine Corps, or master chief petty 

officer of the Coast Guard, at the applicable time designated by section 1302 of this title, the 

surviving spouse’s rate shall be $1,189. 2 If the veteran served as Chairman or Vice-Chairman of the Joint Chiefs of Staff, Chief of 

Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of 

the Marine Corps, or Commandant of the Coast Guard, at the applicable time designated by section 1302 of this title, the surviving spouse’s rate shall be $2,213. 

7 (3) Section 1311(b) is amended by striking 

8 ‘‘$237’’ and inserting ‘‘$241’’. 

9 (4) Section 1311(c) is amended by striking 

10 ‘‘$237’’ and inserting ‘‘$241’’. 

11 (5) Section 1311(d) is amended by striking 

12 ‘‘$113’’ and inserting ‘‘$115’’. 

13 (e) DEPENDENCY AND INDEMNITY COMPENSATION

14 FOR CHILDREN.—(1) Section 1313(a) is amended— 

15 (A) by striking ‘‘$402’’ in paragraph (1) and 

16 inserting ‘‘$410’’; 
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1 (B) by striking ‘‘$578’’ in paragraph (2) and 

2 inserting ‘‘$590’’; 

3 (C) by striking ‘‘$752’’ in paragraph (3) and 

4 inserting ‘‘$767’’; and 

5 (D) by striking ‘‘$752’’ and ‘‘$145’’ in para6 graph (4) and inserting ‘‘$767’’ and ‘‘$148’’, respec7 tively. 

8 (2) Section 1314 is amended— 

9 (A) by striking ‘‘$237’’ in subsection (a) and 

10 inserting ‘‘$241’’; 

11 (B) by striking ‘‘$402’’ in subsection (b) and 

12 inserting ‘‘$410’’; and 

13 (C) by striking ‘‘$201’’ in subsection (c) and in14 serting ‘‘$205’’. 

15 SEC. 308. CROSS-REFERENCE AMENDMENTS RELATING TO 

16 CONCURRENT PAYMENT OF RETIRED PAY 

17 AND VETERANS’ DISABILITY COMPENSATION. 

18 (a) PROHIBITION AGAINST DUPLICATION OF BENE19 FITS.—Section 5304(a)(1) is amended by inserting ‘‘as 

20 provided in section 1414 of title 10 or’’ after ‘‘Except’’. 

21 (b) WAIVER OF RETIRED PAY.—Section 5305 is 

22 amended by striking ‘‘Any’’ in the first sentence and in23 serting ‘‘Except as provided in section 1414 of title 10, 

24 any’’. 
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1 TITLE IV—HOUSING MATTERS 

2 SEC. 401. AUTHORITY TO PROVIDE SPECIALLY ADAPTED 

3 HOUSING TO CERTAIN DISABLED VETERANS. 

4 The text of section 2101 is amended to read as fol5 lows: 

6 ‘‘(a) ACQUISITION OF HOUSING WITH SPECIAL FEA7 TURES.—(1) Subject to paragraph (3), the Secretary may 

8 assist a disabled veteran described in paragraph (2) in ac9 quiring a suitable housing unit with special fixtures or 

10 movable facilities made necessary by the nature of the vet11 eran’s disability, and necessary land therefor. 

12 ‘‘(2) A veteran is described in this paragraph if the 

13 veteran is entitled to compensation under chapter 11 of 

14 this title for a permanent and total service-connected dis15 ability that meets any of the following criteria: 

16 ‘‘(A) The disability is due to the loss, or loss of 

17 use, of both lower extremities such as to preclude lo18 comotion without the aid of braces, crutches, canes, 

19 or a wheelchair. 

20 ‘‘(B) The disability is due to— 

21 ‘‘(i) blindness in both eyes, having only 

22 light perception, plus 

23 ‘‘(ii) loss or loss of use of one lower ex24 tremity. 
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1 ‘‘(C) The disability is due to the loss or loss of 

2 use of one lower extremity together with— 

3 ‘‘(i) residuals of organic disease or injury; 

4 or 

5 ‘‘(ii) the loss or loss of use of one upper 

6 extremity, 

7 which so affect the functions of balance or propul8 sion as to preclude locomotion without the aid of 

9 braces, crutches, canes, or a wheelchair. 

10 ‘‘(D) The disability is due to the loss, or loss 

11 of use, of both upper extremities such as to preclude 

12 use of the arms at or above the elbows. 

13 ‘‘(3) The regulations prescribed under subsection (c) 

14 shall require that assistance under paragraph (1) may be 

15 provided to a veteran only if the Secretary finds that— 

16 ‘‘(A) it is medically feasible for the veteran to 

17 reside in the proposed housing unit and in the pro18 posed locality; 

19 ‘‘(B) the proposed housing unit bears a proper 

20 relation to the veteran’s present and anticipated in21 come and expenses; and 

22 ‘‘(C) the nature and condition of the proposed 

23 housing unit are such as to be suitable to the vet24 eran’s needs for dwelling purposes. 
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1 ‘‘(b) ADAPTATIONS TO RESIDENCE OF VETERAN.— 

2 (1) Subject to paragraph (3), the Secretary shall assist 

3 any disabled veteran described in paragraph (2) (other 

4 than a veteran who is eligible for assistance under sub5 section (a))— 

6 ‘‘(A) in acquiring such adaptations to such vet7 eran’s residence as are determined by the Secretary 

8 to be reasonably necessary because of such dis9 ability; or 

10 ‘‘(B) in acquiring a residence already adapted 

11 with special features determined by the Secretary to 

12 be reasonably necessary for the veteran because of 

13 such disability. 

14 ‘‘(2) A veteran is described in this paragraph if the 

15 veteran is entitled to compensation under chapter 11 of 

16 this title for a permanent and total service-connected dis17 ability that meets either of the following criteria: 

18 ‘‘(A) The disability is due to blindness in both 

19 eyes with 5/200 visual acuity or less. 

20 ‘‘(B) The disability includes the anatomical loss 

21 or loss of use of both hands. 

22 ‘‘(3) Assistance under paragraph (1) may be provided 

23 only to a veteran who the Secretary determines— 
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1 ‘‘(A) is residing in and reasonably intends to 

2 continue residing in a residence owned by such vet3 eran or by a member of such veteran’s family; or 

4 ‘‘(B) if the veteran’s residence is to be con5 structed or purchased, will be residing in and rea6 sonably intends to continue residing in a residence 

7 owned by such veteran or by a member of such vet8 eran’s family. 

9 ‘‘(c) REGULATIONS.—Assistance under this section 

10 shall be provided in accordance with such regulations as 

11 the Secretary may prescribe.’’. 

12 SEC. 402. TRANSITIONAL HOUSING AMENDMENTS. 

13 (a) USE OF VETERAN VOLUNTEERS.—Section 2051 

14 is amended by adding at the end the following new sub15 section: 

16 ‘‘(g) Notwithstanding any other provision of law, a 

17 multifamily transitional housing project that is funded by 

18 a loan guaranteed under this subchapter may accept un19 compensated voluntary services performed by any eligible 

20 entity (as that term is defined in section 2011(d) of this 

21 title) in connection with the construction, alteration, or re22 pair of such project.’’. 

23 (b) AUTHORIZATION FOR COMMERCIALLY-LEASED

24 SPACE.—Section 2052(c)(1) is amended by striking ‘‘serv-
45 

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1 ices’’ and inserting ‘‘services, other commercial activi2 ties,’’. 

3 SEC. 403. INCREASE IN MAXIMUM AMOUNT OF HOME LOAN 

4 GUARANTY FOR CONSTRUCTION AND PUR5 CHASE OF HOMES AND ANNUAL INDEXING OF 

6 AMOUNT. 

7 (a) MAXIMUM LOAN GUARANTY BASED ON 100 PER8 CENT OF FREDDIE MAC CONFORMING LOAN RATE.—Sec9 tion 3703(a)(1) is amended by striking ‘‘$60,000’’ each 

10 place it appears in subparagraphs (A)(i)(IV) and (B) and 

11 inserting ‘‘the maximum guaranty amount (as defined in 

12 subparagraph (C))’’. 

13 (b) DEFINITION.—Such section is further amended 

14 by adding at the end the following new subparagraph: 

15 ‘‘(C) In this paragraph, the term ‘maximum guaranty 

16 amount’ means the dollar amount that is equal to 25 per17 cent of the Freddie Mac conforming loan limit limitation 

18 determined under section 305(a)(2) of the Federal Home 

19 Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) 

20 for a single-family residence, as adjusted for the year in21 volved.’’. 
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1 SEC. 404. EXTENSION OF AUTHORITY FOR GUARANTEE OF 

2 ADJUSTABLE RATE MORTGAGES. 

3 Section 3707(a) is amended by striking ‘‘during fiscal 

4 years 1993, 1994, and 1995’’ and inserting ‘‘during fiscal 

5 years 1993 through 2008’’. 

6 SEC. 405. EXTENSION AND IMPROVEMENT OF AUTHORITY 

7 FOR GUARANTEE OF HYBRID ADJUSTABLE 

8 RATE MORTGAGES. 

9 (a) EXTENSION OF AUTHORITY.—Subsection (a) of 

10 section 3707A is amended by striking ‘‘during fiscal years 

11 2004 and 2005’’ and inserting ‘‘during fiscal years 2004 

12 through 2008’’. 

13 (b) MODIFICATION OF INTEREST RATE ADJUSTMENT

14 REQUIREMENTS.—Subsection (c) of such section is 

15 amended— 

16 (1) by redesignating paragraph (4) as para17 graph (5); 

18 (2) by striking paragraph (3) and inserting the 

19 following new paragraphs: 

20 ‘‘(3) in the case of the initial contract interest 

21 rate adjustment— 

22 ‘‘(A) if the initial contract interest rate re23 mained fixed for less than 5 years, be limited 

24 to a maximum increase or decrease of 1 per25 centage point; or 
47 

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1 ‘‘(B) if the initial contract interest rate re2 mained fixed for 5 years or more, be limited to 

3 a maximum increase or decrease of such per4 centage point or points as the Secretary may 

5 prescribe; 

6 ‘‘(4) in the case of any single annual interest 

7 rate adjustment after the initial contract interest 

8 rate adjustment, be limited to a maximum increase 

9 or decrease of 1 percentage point; and’’; and 

10 (3) in paragraph (5), as so redesignated, by 

11 striking ‘‘5 percentage points’’ and all that follows 

12 and inserting ‘‘such number of percentage points as 

13 the Secretary shall prescribe for purposes of this 

14 section.’’. 

15 (c) NO EFFECT ON GUARANTEE OF LOANS UNDER

16 HYBRID ADJUSTABLE RATE MORTGAGE GUARANTEE

17 DEMONSTRATION PROJECT.—The amendments made by 

18 this section shall not be construed to affect the force or 

19 validity of any guarantee of a loan made by the Secretary 

20 of Veterans Affairs under the demonstration project for 

21 the guarantee of hybrid adjustable rate mortgages under 

22 section 3707A of title 38, United States Code, as in effect 

23 on the day before the date of the enactment of this Act. 
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1 SEC. 406. TERMINATION OF COLLECTION OF LOAN FEES 

2 FROM VETERANS RATED ELIGIBLE FOR COM3 PENSATION AT PRE-DISCHARGE RATING EX4 AMINATIONS. 

5 Section 3729(c) is amended— 

6 (1) by inserting ‘‘(1)’’ before ‘‘A fee’’; and 

7 (2) by adding at the end the following new 

8 paragraph: 

9 ‘‘(2) A veteran who is rated eligible to receive com10 pensation as a result of a pre-discharge disability examina11 tion and rating shall be treated as receiving compensation 

12 for purposes of this subsection as of the date on which 

13 the veteran is rated eligible to receive compensation as a 

14 result of the pre-discharge disability examination and rat15 ing without regard to whether an effective date of the 

16 award of compensation is established as of that date.’’. 

17 SEC. 407. THREE-YEAR EXTENSION OF NATIVE AMERICAN 

18 VETERAN HOUSING LOAN PILOT PROGRAM. 

19 Section 3761(c) is amended by striking ‘‘December 

20 31, 2005’’ and inserting ‘‘December 31, 2008’’. 

21 TITLE V—MATTERS RELATING 

22 TO FIDUCIARIES 

23 SEC. 501. DEFINITION OF FIDUCIARY. 

24 (a) IN GENERAL.—(1) Chapter 55 is amended by 

25 adding at the end the following new section: 
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1 ‘‘§ 5506. Definition of ‘fiduciary’

2 ‘‘For purposes of this chapter and chapter 61 of this 

3 title, the term ‘fiduciary’ means— 

4 ‘‘(1) a person who is a guardian, curator, con5 servator, committee, or person legally vested with 

6 the responsibility or care of a claimant (or a claim7 ant’s estate) or of a beneficiary (or a beneficiary’s 

8 estate); or 

9 ‘‘(2) any other person having been appointed in 

10 a representative capacity to receive money paid 

11 under any of the laws administered by the Secretary 

12 for the use and benefit of a minor, incompetent, or 

13 other beneficiary.’’. 

14 (2) The table of sections at the beginning of such 

15 chapter is amended by adding at the end the following 

16 new item: 

‘‘5506. Definition of ‘fiduciary’.’’. 

17 (b) CONFORMING AMENDMENTS TO SECTION

18 5502.—Section 5502 is amended— 

19 (1) in subsection (a)— 

20 (A) in paragraph (1), by striking ‘‘other 

21 person’’ and inserting ‘‘other fiduciary’’; and 

22 (B) in the second sentence of paragraph 

23 (2), by inserting ‘‘for benefits under this title’’ 

24 after ‘‘in connection with rendering fiduciary 

25 services’’; 
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1 (2) in subsection (b), by striking ‘‘guardian, cu2 rator, conservator, or other person’’ each place it ap3 pears and inserting ‘‘fiduciary’’; and 

4 (3) in subsection (d), by striking ‘‘guardian, cu5 rator, or conservator’’ and inserting ‘‘fiduciary’’. 

6 (c) CONFORMING AMENDMENT TO SECTION 6101.— 

7 Section 6101(a) is amended by striking ‘‘guardian, cura8 tor,’’ and all that follows through ‘‘beneficiary,’’ and in9 serting ‘‘fiduciary (as defined in section 5506 of this title) 

10 for the benefit of a minor, incompetent, or other bene11 ficiary under laws administered by the Secretary,’’. 

12 SEC. 502. INQUIRY, INVESTIGATIONS, AND QUALIFICATION 

13 OF FIDUCIARIES. 

14 (a) IN GENERAL.—Chapter 55, as amended by sec15 tion 501(a)(1), is further amended by adding at the end 

16 the following new section: 

17 ‘‘§ 5507. Inquiry, investigations, and qualification of 

18 fiduciaries 

19 ‘‘(a) Any certification of a person for payment of ben20 efits of a beneficiary to that person as such beneficiary’s 

21 fiduciary under section 5502 of this title shall be made 

22 on the basis of— 

23 ‘‘(1) an inquiry or investigation by the Sec24 retary of the fitness of that person to serve as fidu-
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1 ciary for that beneficiary, such inquiry or investiga2 tion— 

3 ‘‘(A) to be conducted in advance of such 

4 certification; 

5 ‘‘(B) to the extent practicable, to include a 

6 face-to-face interview with such person; and 

7 ‘‘(C) to the extent practicable, to include a 

8 copy of a credit report for such person issued 

9 within one year of the date of the proposed ap10 pointment; 

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

12 person as fiduciary for that beneficiary is in the in13 terest of such beneficiary (as determined by the Sec14 retary under regulations); and 

15 ‘‘(3) the furnishing of any bond that may be re16 quired by the Secretary. 

17 ‘‘(b) As part of any inquiry or investigation of any 

18 person under subsection (a), the Secretary shall request 

19 information concerning whether that person has been con20 victed of any offense under Federal or State law which 

21 resulted in imprisonment for more than one year. If that 

22 person has been convicted of such an offense, the Sec23 retary may certify the person as a fiduciary only if the 

24 Secretary finds that the person is an appropriate person 
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1 to act as fiduciary for the beneficiary concerned under the 

2 circumstances. 

3 ‘‘(c)(1) In the case of a proposed fiduciary described 

4 in paragraph (2), the Secretary, in conducting an inquiry 

5 or investigation under subsection (a)(1), may carry out 

6 such inquiry or investigation on an expedited basis that 

7 may include waiver of any specific requirement relating 

8 to such inquiry or investigation, including the otherwise 

9 applicable provisions of subparagraphs (A), (B), and (C) 

10 of such subsection. Any such inquiry or investigation car11 ried out on such an expedited basis shall be carried out 

12 under regulations prescribed for purposes of this section. 

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

14 fiduciary who is— 

15 ‘‘(A) the parent (natural, adopted, or step16 parent) of a beneficiary who is a minor; 

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

18 beneficiary; 

19 ‘‘(C) a person who has been appointed a fidu20 ciary of the beneficiary by a court of competent ju21 risdiction; or 

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

23 where the annual amount of veterans benefits to be 

24 managed by the proposed fiduciary does not exceed 
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1 $3,600, as adjusted pursuant to section 5312 of this 

2 title. 

3 ‘‘(d) TEMPORARY FIDUCIARIES.—When in the opin4 ion of the Secretary, a temporary fiduciary is needed in 

5 order to protect the assets of the beneficiary while a deter6 mination of incompetency is being made or appealed or 

7 a fiduciary is appealing a determination of misuse, the 

8 Secretary may appoint one or more temporary fiduciaries 

9 for a period not to exceed 120 days. If a final decision 

10 has not been made within 120 days, the Secretary may 

11 not continue the appointment of the fiduciary without ob12 taining a court order for appointment of a guardian, con13 servator, or other fiduciary under the authority provided 

14 in section 5502(b) of this title.’’. 

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

16 at the beginning of such chapter is amended by adding 

17 after the item added by section 501(a)(2) the following 

18 new item: 

‘‘5507. Inquiry, investigations, and qualification of fiduciaries.’’. 

19 SEC. 503. MISUSE OF BENEFITS BY FIDUCIARIES. 

20 (a) PROTECTION OF VETERANS BENEFITS WHEN

21 ADMINISTERED BY FIDUCIARIES.—(1) Chapter 61 is 

22 amended by adding at the end the following new sections: 

23 ‘‘§ 6106. Misuse of benefits by fiduciaries 

24 ‘‘(a) FEE FORFEITURE IN CASE OF BENEFIT MIS25 USE BY FIDUCIARIES.—A fiduciary may not collect a fee 
54 

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1 from a beneficiary for any month with respect to which 

2 the Secretary or a court of competent jurisdiction has de3 termined that the fiduciary misused all or part of the indi4 vidual’s benefit, and any amount so collected by the fidu5 ciary as a fee for such month shall be treated as a misused 

6 part of the individual’s benefit. 

7 ‘‘(b) MISUSE OF BENEFITS DEFINED.—For purposes 

8 of this chapter, misuse of benefits by a fiduciary occurs 

9 in any case in which the fiduciary receives payment, under 

10 any of laws administered by the Secretary, for the use and 

11 benefit of a beneficiary and uses such payment, or any 

12 part thereof, for a use other than for the use and benefit 

13 of such beneficiary or that beneficiary’s dependents. Re14 tention by a fiduciary of an amount of a benefit payment 

15 as a fiduciary fee or commission, or as attorney’s fees (in16 cluding expenses) and court costs, if authorized by the 

17 Secretary or a court of competent jurisdiction, shall be 

18 considered to be for the use or benefit of such beneficiary. 

19 ‘‘(c) REGULATIONS.—The Secretary may prescribe 

20 by regulation the meaning of the term ‘use and benefit’ 

21 for purposes of this section. 

22 ‘‘§ 6107. Reissuance of benefits 

23 ‘‘(a) NEGLIGENT FAILURE BY SECRETARY.—(1) In 

24 any case in which the negligent failure of the Secretary 

25 to investigate or monitor a fiduciary results in misuse of 
55 

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1 benefits by the fiduciary, the Secretary shall pay to the 

2 beneficiary or the beneficiary’s successor fiduciary an 

3 amount equal to the amount of benefits that were so mis4 used. 

5 ‘‘(2) There shall be considered to have been a neg6 ligent failure by the Secretary to investigate and monitor 

7 a fiduciary in the following cases: 

8 ‘‘(A) A case in which the Secretary failed to re9 view a fiduciary’s accounting within 60 days of the 

10 date on which that accounting is scheduled for re11 view. 

12 ‘‘(B) A case in which the Secretary was notified 

13 of allegations of misuse, but failed to act within 60 

14 days of the date of such notification to terminate the 

15 fiduciary. 

16 ‘‘(C) In any other case in which actual neg17 ligence is shown. 

18 ‘‘(b) REISSUANCE OF MISUSED BENEFITS IN OTHER

19 CASES.—(1) In any case in which a fiduciary described 

20 in paragraph (2) misuses all or part of an individual’s ben21 efit paid to such fiduciary, the Secretary shall pay to the 

22 beneficiary or the beneficiary’s successor fiduciary an 

23 amount equal to the amount of such benefit so misused. 

24 ‘‘(2) Paragraph (1) applies to a fiduciary that— 

25 ‘‘(A) is not an individual; or 
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1 ‘‘(B) is an individual who, for any month dur2 ing a period when misuse occurs, serves 10 or more 

3 individuals who are beneficiaries under this title. 

4 ‘‘(3) In any other case in which the Secretary obtains 

5 recoupment from a fiduciary who has misused benefits, 

6 the Secretary shall promptly remit payment of the re7 couped amounts to the beneficiary or the beneficiary’s suc8 cessor fiduciary as the case may be. 

9 ‘‘(c) LIMITATION ON TOTAL AMOUNT PAID.—The 

10 total of the amounts paid to a beneficiary (or a bene11 ficiary’s successor fiduciary) under this section may not 

12 exceed the total benefit amount misused by the fiduciary 

13 with respect to that beneficiary. 

14 ‘‘(d) RECOUPMENT OF AMOUNTS REISSUED.—In any 

15 case in which the Secretary reissues a benefit payment (in 

16 whole or in part) under subsection (a) or (b), the Sec17 retary shall make a good faith effort to obtain recoupment 

18 from the fiduciary to whom the payment was originally 

19 made.’’. 

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

21 at the beginning of such chapter is amended by adding 

22 at the end the following new items: 

‘‘6106. Misuse of benefits by fiduciaries. 

‘‘6107. Reissuance of benefits.’’. 
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1 SEC. 504. ADDITIONAL PROTECTIONS FOR BENEFICIARIES 

2 WITH FIDUCIARIES. 

3 (a) ONSITE REVIEWS AND REQUIRED ACCOUNT4 INGS.—(1) Chapter 55, as amended by section 502(a), is 

5 further amended by adding at the end the following new 

6 sections: 

7 ‘‘§ 5508. Periodic onsite reviews of institutional fidu8 ciaries 

9 ‘‘In addition to such other reviews of fiduciaries as 

10 the Secretary may otherwise conduct, the Secretary shall 

11 provide for the periodic onsite review of any person or 

12 agency located in the United States that receives the bene13 fits payable under laws administered by the Secretary to 

14 another individual pursuant to the appointment of such 

15 person or agency as a fiduciary under section 5502(a)(1) 

16 of this title in any case in which the fiduciary is serving 

17 in that capacity with respect to more than 20 beneficiaries 

18 and the total annual amount of such benefits exceeds 

19 $50,000, as adjusted pursuant to section 5312 of this 

20 title. 

21 ‘‘§ 5509. Authority to require fiduciary to receive pay22 ments at regional offices of the Depart23 ment when failing to provide required ac24 counting 

25 ‘‘(a) REQUIRED REPORTS AND ACCOUNTINGS.—The 

26 Secretary may require a fiduciary to file a report or ac-
58 

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1 counting pursuant to regulations prescribed by the Sec2 retary. 

3 ‘‘(b) ACTIONS UPON FAILURE TO FILE.—In any case 

4 in which a fiduciary fails to submit a report or accounting 

5 required by the Secretary under subsection (a), the Sec6 retary may, after furnishing notice to such fiduciary and 

7 the beneficiary entitled to such payment of benefits, re8 quire that such fiduciary appear in person at a regional 

9 office of the Department serving the area in which the 

10 beneficiary resides in order to receive such payments.’’. 

11 (2) The table of sections at the beginning of such 

12 chapter is amended by adding after the item added by sec13 tion 502(b) the following new items: 

‘‘5508. Periodic onsite reviews of institutional fiduciaries. 

‘‘5509. Authority to require fiduciary to receive payments at regional offices of 

the Department when failing to provide required accounting.’’. 

14 (b) JUDICIAL ORDERS OF RESTITUTION.—(1) Chap15 ter 61, as amended by section 503(a), is further amended 

16 by adding at the end the following new section: 

17 ‘‘§ 6108. Authority for judicial orders of restitution 

18 ‘‘(a) Any Federal court, when sentencing a defendant 

19 convicted of an offense arising from the misuse of benefits 

20 under this title, may order, in addition to or in lieu of 

21 any other penalty authorized by law, that the defendant 

22 make restitution to the Department. 

23 ‘‘(b) Sections 3612, 3663, and 3664 of title 18 shall 

24 apply with respect to the issuance and enforcement of or-
59 

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1 ders of restitution under subsection (a). In so applying 

2 those sections, the Department shall be considered the vic3 tim. 

4 ‘‘(c) If the court does not order restitution, or orders 

5 only partial restitution, under subsection (a), the court 

6 shall state on the record the reasons therefor. 

7 ‘‘(d) Amounts received in connection with misuse by 

8 a fiduciary of funds paid as benefits under laws adminis9 tered by the Secretary shall be paid to the individual 

10 whose benefits were misused. If the Secretary has pre11 viously reissued the misused benefits, the amounts shall 

12 be treated in the same manner as overpayments recouped 

13 by the Secretary and shall be deposited to the credit of 

14 the applicable revolving fund, trust fund, or appropria15 tion.’’. 

16 (2) The table of sections at the beginning of such 

17 chapter is amended by adding after the item added by sec18 tion 503(b) the following new item: 

‘‘6108. Authority for judicial orders of restitution.’’. 

19 SEC. 505. ANNUAL REPORT. 

20 (a) IN GENERAL.—Chapter 55, as amended by sec21 tion 504(a)(1), is further amended by adding at the end 

22 the following new section: 

23 ‘‘§ 5510. Annual report 

24 ‘‘The Secretary shall include in the Annual Benefits 

25 Report of the Veterans Benefits Administration or the 
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1 Secretary’s Annual Performance and Accountability Re2 port information concerning fiduciaries who have been ap3 pointed to receive payments for beneficiaries of the De4 partment. As part of such information, the Secretary shall 

5 separately set forth the following: — 

6 ‘‘(1) The number of beneficiaries in each cat7 egory (veteran, surviving spouse, child, adult dis8 abled child, or parent). 

9 ‘‘(2) The types of benefit being paid (compensa10 tion, pension, dependency and indemnity compensa11 tion, death pension or benefits payable to a disabled 

12 child under chapter 18 of this title). 

13 ‘‘(3) The total annual amounts and average an14 nual amounts of benefits paid to fiduciaries for each 

15 category and type of benefit. 

16 ‘‘(4) The number of fiduciaries who are the 

17 spouse, parent, legal custodian, court-appointed fidu18 ciary, institutional fiduciary, custodian in fact, and 

19 supervised direct payees. 

20 ‘‘(5) The number of cases in which the fidu21 ciary was changed by the Secretary because of a 

22 finding that benefits had been misused. 

23 ‘‘(6) How such cases of misuse of benefits were 

24 addressed by the Secretary. 
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1 ‘‘(7) The final disposition of such cases of mis2 use of benefits, including the number and dollar 

3 amount of any benefits reissued to beneficiaries. 

4 ‘‘(8) The number of fiduciary cases referred to 

5 the Office of the Inspector General and the nature 

6 of the actions taken by the Inspector General. 

7 ‘‘(9) The total amount of money recovered by 

8 the government in cases arising from the misuse of 

9 benefits by a fiduciary. 

10 ‘‘(10) Such other information as the Secretary 

11 considers appropriate.’’. 

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

13 at the beginning of such chapter is amended by adding 

14 after the items added by the amendment made by section 

15 504(a)(2) the following new item: 

‘‘5510. Annual report.’’. 

16 SEC. 506. ANNUAL ADJUSTMENT IN BENEFITS THRESH17 OLDS. 

18 Section 5312(b)(1) is amended by inserting ‘‘and the 

19 annual benefit amount limitations under sections 

20 5507(c)(2)(D) and 5508 of this title,’’ after ‘‘(d)(3) of 

21 such section,’’. 

22 SEC. 507. EFFECTIVE DATES. 

23 (a) IN GENERAL.—Except as otherwise provided, this 

24 title and the amendments made by this title shall take ef-
62 

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1 fect on the first day of the seventh month beginning after 

2 the date of the enactment of this Act. 

3 (b) SPECIAL RULES.—(1) Section 5510 of title 38, 

4 United States Code, as added by section 505(a), shall take 

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

6 (2) Sections 6106 and 6107 of title 38, United States 

7 Code, as added by section 503(a), shall apply with respect 

8 to any determinations by the Secretary of Veterans Affairs 

9 made after the date of the enactment of this Act of misuse 

10 of funds by a fiduciary. 

11 TITLE VI—MEMORIAL AFFAIRS 

12 MATTERS 

13 SEC. 601. DESIGNATION OF PRISONER OF WAR/MISSING IN 

14 ACTION NATIONAL MEMORIAL, RIVERSIDE 

15 NATIONAL CEMETERY, RIVERSIDE, CALI16 FORNIA. 

17 (a) DESIGNATION.—The memorial to former pris18 oners of war and members of the Armed Forces listed as 

19 missing in action that is under construction at Riverside 

20 National Cemetery in Riverside, California, is hereby des21 ignated: ‘‘Prisoner of War/Missing in Action National Me22 morial’’. 

23 (b) EFFECT OF DESIGNATION.—Such national me24 morial designated by subsection (a) is not a unit of the 

25 National Park System, and the designation of the national 
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1 memorial shall not be construed to require Federal funds 

2 to be expended for any purpose related to the national me3 morial. 

4 SEC. 602. LEASE OF CERTAIN NATIONAL CEMETERY ADMIN5 ISTRATION PROPERTY. 

6 (a) IN GENERAL.—Chapter 24 is amended by adding 

7 at the end the following new section: 

8 ‘‘§ 2412. Lease of land and buildings 

9 ‘‘(a) LEASE AUTHORIZED.—The Secretary may lease 

10 any undeveloped land and unused or underutilized build11 ings, or parts or parcels thereof, belonging to the United 

12 States and part of the National Cemetery Administration. 

13 ‘‘(b) TERM.—The term of a lease under subsection 

14 (a) may not exceed 10 years. 

15 ‘‘(c) LEASE TO PUBLIC OR NONPROFIT ORGANIZA16 TIONS.—(1) A lease under subsection (a) to any public 

17 or nonprofit organization may be made without regard to 

18 the provisions of section 3709 of the Revised Statutes (41 

19 U.S.C. 5). 

20 ‘‘(2) Notwithstanding section 1302 of title 40 or any 

21 other provision of law, a lease under subsection (a) to any 

22 public or nonprofit organization may provide for the main23 tenance, protection, or restoration of the leased property 

24 by the lessee, as a part or all of the consideration for the 

25 lease. 
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1 ‘‘(d) NOTICE.—Before entering into a lease under 

2 subsection (a), the Secretary shall give appropriate public 

3 notice of the intention of the Secretary to enter into the 

4 lease in a newspaper of general circulation in the commu5 nity in which the lands or buildings concerned are located. 

6 ‘‘(e) NATIONAL CEMETERY ADMINISTRATION FA7 CILITIES OPERATION FUND.—(1) There is established on 

8 the book of the Treasury an account to be known as the 

9 ‘National Cemetery Administration Facilities Operation 

10 Fund’ (in this section referred to as the ‘Fund’). 

11 ‘‘(2) The Fund shall consist of the following: 

12 ‘‘(A) Proceeds from the lease of land or build13 ings under this section. 

14 ‘‘(B) Proceeds of agricultural licenses of lands 

15 of the National Cemetery Administration. 

16 ‘‘(C) Any other amounts appropriated to or oth17 erwise authorized for deposit in the Fund by law. 

18 ‘‘(3) Amounts in the Fund shall be available to cover 

19 costs incurred by the National Cemetery Administration 

20 in the operation and maintenance of property of the Ad21 ministration. 

22 ‘‘(4) Amounts in the Fund shall remain available 

23 until expended.’’. 
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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 at the beginning of such chapter is amended by adding 

3 at the end the following new item: 

‘‘2412. Lease of land and buildings.’’. 

4 SEC. 603. EXCHANGES OF REAL PROPERTY FOR NATIONAL 

5 CEMETERIES. 

6 Section 2406 is amended by inserting ‘‘exchange,’’ 

7 after ‘‘agencies,’’. 

8 TITLE VII—IMPROVEMENTS TO 

9 SERVICEMEMBERS CIVIL RE10 LIEF ACT 

11 SEC. 701. CLARIFICATION OF MEANING OF ‘‘JUDGMENT’’ AS 

12 USED IN THE ACT. 

13 Section 101 of the Servicemembers Civil Relief Act 

14 (50 U.S.C. App. 511) is amended by adding at the end 

15 the following new paragraph: 

16 ‘‘(9) JUDGMENT.—The term ‘judgment’ means 

17 any judgment, decree, order, or ruling, final or tem18 porary.’’. 

19 SEC. 702. REQUIREMENTS RELATING TO WAIVER OF 

20 RIGHTS UNDER THE ACT. 

21 Section 107 of the Servicemembers Civil Relief Act 

22 (50 U.S.C. App. 517) is amended— 

23 (1) in subsection (a), by inserting after the first 

24 sentence the following new sentence: ‘‘Any such 

25 waiver that applies to an action listed in subsection 
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1 (b) of this section is effective only if it is in writing 

2 and is executed as an instrument separate from the 

3 obligation or liability to which it applies.’’; 

4 (2) by redesignating subsection (c) as sub5 section (d); and 

6 (3) by inserting after subsection (b) the fol7 lowing new subsection (c): 

8 ‘‘(c) PROMINENT DISPLAY OF CERTAIN CONTRACT

9 RIGHTS WAIVERS.—Any waiver in writing of a right or 

10 protection provided by this Act that applies to a contract, 

11 lease, or similar legal instrument must be in at least 12 

12 point type.’’. 

13 SEC. 703. RIGHT OF SERVICEMEMBER PLAINTIFFS TO RE14 QUEST STAY OF CIVIL PROCEEDINGS. 

15 Section 202(a) of the Servicemembers Civil Relief Act 

16 (50 U.S.C. App. 522(a)) is amended by inserting ‘‘plain17 tiff or’’ before ‘‘defendant’’. 

18 SEC. 704. TERMINATION OF LEASES. 

19 (a) JOINT LEASES.—Subsection (a) of section 305 of 

20 the Servicemembers Civil Relief Act (50 U.S.C. App. 535) 

21 is amended to read as follows: 

22 ‘‘(a) TERMINATION BY LESSEE.— 

23 ‘‘(1) IN GENERAL.—The lessee on a lease de24 scribed in subsection (b) may, at the lessee’s option, 

25 terminate the lease at any time after— 
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1 ‘‘(A) the lessee’s entry into military serv2 ice; or 

3 ‘‘(B) the date of the lessee’s military or4 ders described in paragraph (1)(B) or (2)(B) of 

5 subsection (b), as the case may be. 

6 ‘‘(2) JOINT LEASES.—A lessee’s termination of 

7 a lease pursuant to this subsection shall terminate 

8 any obligation a dependent of the lessee may have 

9 under the lease.’’. 

10 (b) MOTOR VEHICLES LEASES.— 

11 (1) APPLICABILITY TO PCS ORDERS FROM

12 STATES OUTSIDE CONUS.—Subparagraph (B) of 

13 subsection (b)(2) of such section is amended by 

14 striking ‘‘military orders for’’ and all that follows 

15 through ‘‘or to deploy’’ and inserting ‘‘military or16 ders— 

17 ‘‘(i) for a change of permanent sta18 tion— 

19 ‘‘(I) from a location in the conti20 nental United States to a location out21 side the continental United States; or 

22 ‘‘(II) from a location in a State 

23 outside the continental United States 

24 to any location outside that State; or 

25 ‘‘(ii) to deploy’’. 
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1 (2) DEFINITIONS.—Such section is further 

2 amended by adding at the end the following new 

3 subsection: 

4 ‘‘(i) DEFINITIONS.— 

5 ‘‘(1) MILITARY ORDERS.—The term ‘military 

6 orders’, with respect to a servicemember, means offi7 cial military orders, or any notification, certification, 

8 or verification from the servicemember’s com9 manding officer, with respect to the servicemember’s 

10 current or future military duty status. 

11 ‘‘(2) CONUS.—The term ‘continental United 

12 States’ means the 48 contiguous States and the Dis13 trict of Columbia.’’. 

14 (c) COVERAGE OF INDIVIDUAL DEPLOYMENTS.— 

15 Subsection (b) of such section is further amended in para16 graph (1)(B) and paragraph (2)(B)(ii) (as designated by 

17 subsection (b) of this section) by inserting ‘‘, or as an indi18 vidual in support of a military operation,’’ after ‘‘deploy 

19 with a military unit’’. 

20 TITLE VIII—OTHER MATTERS 

21 SEC. 801. PRINCIPAL OFFICE OF UNITED STATES COURT OF 

22 APPEALS FOR VETERANS CLAIMS. 

23 Section 7255 is amended by striking ‘‘District of Co24 lumbia’’ and inserting ‘‘Washington, D.C., metropolitan 

25 area’’. 
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1 SEC. 802. TECHNICAL AMENDMENTS RELATING TO THE 

2 UNITED STATES COURT OF APPEALS FOR 

3 VETERANS CLAIMS. 

4 (a) RESTORATION OF PRIOR PROVISION RELATING

5 TO CHIEF JUDGE.—Section 7253(d)(1) is amended by in6 serting after ‘‘(1)’’ the following: ‘‘The chief judge of the 

7 Court is the head of the Court.’’. 

8 (b) CAPITALIZATION AMENDMENTS.—Section 

9 7253(d)(4)(A) is amended by striking ‘‘court’’ in clauses 

10 (i) and (ii) and inserting ‘‘Court’’. 

11 (c) DATE OF ENACTMENT REFERENCE.—Section 

12 7253(h)(4) is amended by striking ‘‘the date of the enact13 ment of this subsection’’ and inserting ‘‘December 27, 

14 2001,’’. 

15 SEC. 803. EXTENSION OF BIENNIAL REPORT OF ADVISORY 

16 COMMITTEE ON FORMER PRISONERS OF 

17 WAR. 

18 Section 541(c)(1) is amended by striking ‘‘2003’’ and 

19 inserting ‘‘2009’’. 

20 SEC. 804. AVAILABILITY OF ADMINISTRATIVE AND JUDI21 CIAL REDRESS FOR CERTAIN VETERANS DE22 NIED OPPORTUNITY TO COMPETE FOR FED23 ERAL EMPLOYMENT. 

24 (a) ADMINISTRATIVE REDRESS.—Section 

25 3330a(a)(1) of title 5, United States Code, is amended— 

26 (1) by inserting ‘‘(A)’’ after ‘‘(1)’’; and 
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1 (2) by adding at the end the following new sub2 paragraph: 

3 ‘‘(B) A veteran described in section 3304(f)(1) who 

4 alleges that an agency has violated such section with re5 spect to such veteran may file a complaint with the Sec6 retary of Labor.’’. 

7 (b) JUDICIAL REDRESS.—Section 3330b(a) is 

8 amended by inserting ‘‘, or a veteran described by section 

9 3330a(a)(1)(B) with respect to a violation described by 

10 such section,’’ after ‘‘a preference eligible’’. 

11 SEC. 805. REPORT ON SERVICEMEMBERS’ AND VETERANS’

12 AWARENESS OF BENEFITS AND SERVICES 

13 AVAILABLE UNDER LAWS ADMINISTERED BY 

14 SECRETARY OF VETERANS AFFAIRS. 

15 (a) REPORT.—Not later than one year after the date 

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

17 Affairs shall submit to Congress a report setting forth a 

18 detailed description of (1) the outreach efforts of the De19 partment of Veterans Affairs, as of the date of the enact20 ment of this Act, to inform members of the uniformed 

21 services and veterans (and their family members and sur22 vivors) of the benefits and services to which they are enti23 tled under laws administered by the Secretary, and (2) 

24 the current level of awareness of those members and vet-
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1 erans (and family members and survivors) of those bene2 fits and services. 

3 (b) MATTERS TO BE INCLUDED.—The report under 

4 subsection (a) shall include the following: 

5 (1) A description of the outreach activities con6 ducted by the Secretary in each of the three Admin7 istrations of the Department of Veterans Affairs and 

8 outreach activities conducted by other entities within 

9 the Department. 

10 (2) The results of a national survey, conducted 

11 as described in subsection (c), to ascertain 

12 servicemembers’ and veterans’ level of awareness of 

13 benefits and services referred to in subsection (a) 

14 and whether servicemembers and veterans know how 

15 to access those benefits and services. 

16 (3) Recommendations by the Secretary on how 

17 outreach and awareness activities to veterans and 

18 servicemembers may be improved. 

19 (c) CONDUCT OF SURVEY.—The survey conducted for 

20 purposes of subsection (b)(2) shall be conducted in a man21 ner to include a statistically valid sample of persons in 

22 each of the following groups: 

23 (1) World War II veterans. 

24 (2) Korean conflict era veterans. 

25 (3) Vietnam era veterans. 
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1 (4) Persian Gulf era veterans. 

2 (5) Active duty servicemembers. 

3 (6) National Guard and Reserve members acti4 vated under title 10, United States Code. 

5 (7) Family members and survivors. 

Passed the Senate October 8, 2004. 

Attest: EMILY J. REYNOLDS, 

Secretary.