II 

108TH CONGRESS 

2D SESSION S. 2486

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

housing, employment, medical, and other benefits for veterans and to 

improve and extend certain authorities relating to the administration 

or benefits for veterans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 1, 2004

Mr. SPECTER (for himself and Ms. MURKOWSKI) (by request) 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 education, housing, employment, medical, and 

other benefits for veterans and to improve and extend 

certain authorities relating to the administration or benefits for veterans, 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 Improvements Act of 2004’’. 

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

7 this Act is as follows:
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Sec. 1. Short title; table of contents. 

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

TITLE I—EDUCATION BENEFITS 

Sec. 101. Increase in maximum amount of contribution for increased amount 

of basic educational assistance under Montgomery GI Bill. 

Sec. 102. Pilot program on additional two-year period for use of entitlement by 

participants in Montgomery GI Bill for vocational or job readiness training. 

Sec. 103. Exclusion of veterans education benefits in determination of eligibility 

or amount of Federal educational grants and loans. 

Sec. 104. Collection of contributions for educational assistance under Montgomery GI Bill from Reserves called to active duty. 

TITLE II—HOUSING BENEFITS 

Sec. 201. Increase in maximum amount of housing loan guarantee. 

Sec. 202. Permanent authority for guarantee of adjustable rate mortgages. 

Sec. 203. Permanent authority for guarantee of hybrid adjustable rate mortgages and modification of guarantee authority. 

Sec. 204. Termination of collection of loan fees from veterans rated eligible for 

compensation at pre-discharge rating examinations. 

TITLE III—OTHER BENEFITS AND BENEFITS MATTERS 

Subtitle A—Employment Benefits 

Sec. 301. Availability of administrative and judicial redress for certain veterans 

denied opportunity to compete for Federal employment. 

Subtitle B—Medical Benefits 

Sec. 311. Prohibition on collection of copayments for hospice care. 

Subtitle C—Extension of Benefits and Related Authorities 

Sec. 321. Extension of various authorities relating to benefits for veterans. 

Subtitle D—Other Matters 

Sec. 331. Modification of definition of minority group member for purposes of 

Advisory Committee on Minority Veterans.

1 SEC. 2. REFERENCES 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.
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1 TITLE I—EDUCATION BENEFITS 

2 SEC. 101. INCREASE IN MAXIMUM AMOUNT OF CONTRIBU3 TION FOR INCREASED AMOUNT OF BASIC 

4 EDUCATIONAL ASSISTANCE UNDER MONT5 GOMERY GI BILL. 

6 (a) ACTIVE DUTY BENEFIT.—Section 3011(e)(3) is 

7 amended by striking ‘‘$600’’ and inserting ‘‘$2,000’’. 

8 (b) SELECTED RESERVE BENEFIT.—Section 

9 3012(f)(3) is amended by striking ‘‘$600’’ and inserting 

10 ‘‘$2,000’’. 

11 SEC. 102. PILOT PROGRAM ON ADDITIONAL TWO-YEAR PE12 RIOD FOR USE OF ENTITLEMENT BY PARTICI13 PANTS IN MONTGOMERY GI BILL FOR VOCA14 TIONAL OR JOB READINESS TRAINING. 

15 (a) IN GENERAL.—(1) Subchapter I of chapter 30 

16 is amended by adding at the end the following new section: 

17 ‘‘§ 3020A. Additional two-year period for use of enti18 tlement for vocational or job readiness 

19 instruction or training: pilot program 

20 ‘‘(a) PILOT PROGRAM REQUIRED.—(1) The Sec21 retary shall carry out a pilot program to assess the feasi22 bility and advisability of permitting individuals whose enti23 tlement to basic educational assistance under this chapter 

24 expires under section 3031 of this title before their com-
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1 plete use of such entitlement to be entitled to an additional 

2 two-year period for their use of such entitlement. 

3 ‘‘(2) The pilot program shall commence six months 

4 after the date of the enactment of this section, and shall 

5 terminate four years after the date of the commencement 

6 of the pilot program. 

7 ‘‘(b) ADDITIONAL TWO-YEAR PERIOD OF ENTITLE8 MENT.—Notwithstanding any provision of section 3031 of 

9 this title, an individual described in subsection (c) shall, 

10 at the expiration of the 10-year period beginning on the 

11 educational assistance entitlement commencement date of 

12 such individual, be entitled to an additional two-year pe13 riod for the use of entitlement to basic educational assist14 ance under this chapter. 

15 ‘‘(c) ELIGIBLE INDIVIDUALS.—(1) An individual de16 scribed in this subsection is any individual who—

17 ‘‘(A) as of the end of the 10-year period begin18 ning on the educational assistance entitlement com19 mencement date of such individual—

20 ‘‘(i) would remain entitled to basic edu21 cational assistance under this chapter but for 

22 the expiration of the 10-year delimiting period 

23 applicable to such individual under section 3031 

24 of this title; and
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1 ‘‘(ii) has not utilized all of the entitlement 

2 of such individual to basic educational assist3 ance under this chapter; and 

4 ‘‘(B) at the time of the application for entitle5 ment under this subsection (d), is accepted, enrolled, 

6 or otherwise participating (as determined by the 

7 Secretary) in instruction or training described in 

8 subsection (e). 

9 ‘‘(2) This subsection does not apply to an individual 

10 otherwise described by paragraph (1) whose remaining en11 titlement to basic educational assistance under this chap12 ter as described in subparagraph (A)(ii) of that paragraph 

13 is based on the transfer of basic educational assistance 

14 under section 3020 of this title. 

15 ‘‘(d) APPLICATION.—(1) An individual seeking an ad16 ditional two-year period for the use of entitlement under 

17 this section shall submit to the Secretary an application 

18 therefor containing such information as the Secretary may 

19 require for purposes of this section. 

20 ‘‘(2) The Secretary may not receive applications 

21 under this subsection after the termination date of the 

22 pilot program under subsection (a)(2). 

23 ‘‘(e) COMMENCEMENT OF ADDITIONAL PERIOD FOR

24 USE.—The additional two-year period for the use of enti25 tlement by an individual under this section shall com-
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1 mence on the date the application of the individual under 

2 subsection (d) is received by the Secretary if the Secretary 

3 determines pursuant to a review of the application that 

4 the individual is an individual described by subsection (c) 

5 for purposes of this section. 

6 ‘‘(f) INSTRUCTION OR TRAINING COVERED BY ADDI7 TIONAL PERIOD FOR USE.—(1) The instruction or train8 ing for which entitlement to basic educational assistance 

9 under this chapter may be used during the additional two10 year period for the use of entitlement under this section 

11 is as follows: 

12 ‘‘(A) Education leading to employment in a 

13 high technology industry for purposes of section 

14 3014A of this title. 

15 ‘‘(B) A full-time program of apprenticeship or 

16 other on-job training approved as provided in clause 

17 (1) or (2), as appropriate, of section 3687 of this 

18 title. 

19 ‘‘(C) A cooperative program (as defined in sec20 tion 3482(a)(2) of this title). 

21 ‘‘(D) A licensing or certification test approved 

22 under section 3689 of this title. 

23 ‘‘(E) Training or education leading toward a 

24 professional or vocational objective which has been 

25 approved in accordance with the provisions of sub-
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1 chapter I of chapter 36 of this title and is identified 

2 by the Secretary in regulations to be prescribed by 

3 the Secretary for purposes of this section. 

4 ‘‘(2) Entitlement to basic educational assistance 

5 under this chapter may not be used during the additional 

6 two-year period for the use of entitlement under this sec7 tion for the instruction or training as follows: 

8 ‘‘(A) General education leading toward a stand9 ard college degree (as defined in section 3452(g) of 

10 this title), unless the program or training concerned 

11 will result in an associates degree that is approved 

12 by the Secretary in the manner specified in para13 graph (1)(E) to be necessary to obtain a professional 

14 or vocational objective. 

15 ‘‘(B) Preparatory courses for a test that is re16 quired or used for admission to an institution of 

17 higher education or graduate school. 

18 ‘‘(g) COORDINATION WITH CERTAIN OTHER BENE19 FITS.—(1) An individual entitled to basic educational as20 sistance under subsection (c) is entitled to educational and 

21 vocational counseling under section 3697A of this title in 

22 connection with the use of entitlement under this section. 

23 ‘‘(2) An individual using entitlement to basic edu24 cational assistance under this chapter during the addi25 tional two-year period for the use of entitlement under this 
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1 section is not entitled during the use of such entitlement 

2 to the following: 

3 ‘‘(A) Supplemental educational assistance under 

4 subchapter III of this chapter. 

5 ‘‘(B) A work-study allowance under section 

6 3485 of this title. 

7 ‘‘(h) EDUCATIONAL ASSISTANCE ENTITLEMENT

8 COMMENCEMENT DATE DEFINED.—In this section, the 

9 term ‘educational assistance entitlement commencement 

10 date’, in the case of an individual described in subsection 

11 (b)(1), means the date on which begins the period during 

12 which the individual may use the individual’s entitlement 

13 to educational assistance under chapter as determined 

14 under section 3031 of this title. 

15 ‘‘(i) EFFECT OF TERMINATION OF PILOT PRO16 GRAM.—The termination of the pilot program under sub17 section (a)(2) shall not effect the continuing use of entitle18 ment under this section of any individual whose additional 

19 two-year period for the use of entitlement under this sec20 tion continues after the date of the termination of the pilot 

21 program under that subsection.’’. 

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

23 chapter is amended by inserting after the item relating 

24 to section 3020 the following new item:

‘‘3020A. Additional two-year period for use of entitlement for vocational or job 

readiness instruction or training: pilot program.’’.
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1 (b) CROSS-REFERENCE AMENDMENT.—Section 3031 

2 is amended—

3 (1) in subsection (a), by striking ‘‘subsections 

4 (b) through (g), and subject to subsection (h),’’ and 

5 inserting ‘‘subsections (b) through (h), and subject 

6 to subsection (i),’’; 

7 (2) by redesignating subsection (h) as sub8 section (i); and 

9 (3) by inserting after subsection (g) the fol10 lowing new subsection (h): 

11 ‘‘(h) An individual whose period for the use of entitle12 ment to basic educational assistance under this chapter 

13 would otherwise expire under this section may be eligible 

14 for an additional two-year period for the use of entitlement 

15 under section 3020A of this title.’’. 

16 SEC. 103. EXCLUSION OF VETERANS EDUCATION BENEFITS 

17 IN DETERMINATION OF ELIGIBILITY OR 

18 AMOUNT OF FEDERAL EDUCATIONAL 

19 GRANTS AND LOANS. 

20 (a) IN GENERAL.—(1) Subchapter II of chapter 36 

21 is amended by inserting after section 3694 the following 

22 new section: 
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1 ‘‘§ 3694A. Exclusion of veterans education benefits in 

2 determination of eligibility or amount of 

3 Federal education grants and loans 

4 ‘‘(a) EXCLUSION.—Notwithstanding any other provi5 sion of law and subject to subsection (b), education bene6 fits shall not be considered as income, assets, or other 

7 monetary resource in determining eligibility for, or the 

8 amount of, grant or loan assistance provided under title 

9 IV of the Higher Education Act of 1965 (20 U.S.C. 1070 

10 et seq.). 

11 ‘‘(b) EXCEPTION.—In the case of campus-based stu12 dent financial assistance, the amount of such assistance 

13 for which an individual would otherwise be eligible without 

14 taking into consideration education benefits as described 

15 in subsection (a) shall be reduced to the extent that the 

16 sum of such amount, the amount of the education benefits 

17 of the individual, and the amount of the Federal Pell 

18 Grant, if any, of the individual exceeds the cost of attend19 ance of the individual. 

20 ‘‘(c) DEFINITIONS.—In this section: 

21 ‘‘(1) The term ‘campus-based student financial 

22 assistance’ means grant, work, or loan assistance 

23 provided under subpart 3 of part A, and parts C and 

24 E of title IV of the Higher Education Act of 1965 

25 (20 U.S.C. 1070b et seq; 42 U.S.C. 2751 et seq.; 20 

26 U.S.C. 1087aa et seq.). 
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1 ‘‘(2) The term ‘cost of attendance’ has the 

2 meaning given such term in section 472 of the High3 er Education Act of 1965 (20 U.S.C. 1087ll). 

4 ‘‘(3) The term ‘education benefits’ means edu5 cation benefits under chapters 30, 32, and 35 of this 

6 title and under chapter 1606 of title 10. 

7 ‘‘(4) The term ‘Federal Pell Grant’ means a 

8 grant provided under subpart 1 of part A of title IV 

9 of the Higher Education Act of 1965 (20 U.S.C. 

10 1070a).’’. 

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

12 36 is amended by inserting after the item referring to sec13 tion 3694 the following new item:

‘‘3694A. Exclusion of veterans education benefits in determination of eligibility 

or amount of Federal education grants and loans.’’.

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

15 this section shall be effective with respect to award years, 

16 as that term is defined in section 481(a)(1) of the Higher 

17 Education Act of 1965 (20 U.S.C. 1088(a)(1)), beginning 

18 on or after July 1, 2004. 

19 SEC. 104. COLLECTION OF CONTRIBUTIONS FOR EDU20 CATIONAL ASSISTANCE UNDER MONT21 GOMERY GI BILL FROM RESERVES CALLED 

22 TO ACTIVE DUTY. 

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

24 amended—
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1 (1) by striking ‘‘The basic pay’’ and inserting 

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

3 pay’’; 

4 (2) by designating the second sentence as para5 graph (3), indenting the left margin of such para6 graph, as so designated, two ems, and, in that para7 graph by striking ‘‘this chapter’’ and inserting ‘‘this 

8 subsection’’; and 

9 (3) by inserting after paragraph (1), as so des10 ignated, the following new paragraph: 

11 ‘‘(2) In the case of an individual covered by para12 graph (1) who is a Reserve, the Secretary shall collect 

13 from the individual an amount equal to $1,200 before the 

14 commencement by the individual of the use of entitlement 

15 to basic educational assistance under this chapter. The 

16 Secretary may collect such amount through reductions in 

17 basic pay in accordance with paragraph (1) or through 

18 such other method as the Secretary determines appro19 priate.’’. 

20 (b) SELECTED RESERVE PROGRAM.—Section 

21 3012(c) is amended— 

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

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

24 pay’’; 
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1 (2) by designating the second sentence as para2 graph (3), indenting the left margin of such para3 graph, as so designated, two ems, and, in that para4 graph by striking ‘‘this chapter’’ and inserting ‘‘this 

5 subsection’’; and 

6 (3) by inserting after paragraph (1), as so des7 ignated, the following new paragraph: 

8 ‘‘(2) In the case of an individual covered by para9 graph (1) who is a Reserve, the Secretary shall collect 

10 from the individual an amount equal to $1,200 before the 

11 commencement by the individual of the use of entitlement 

12 to basic educational assistance under this chapter. The 

13 Secretary may collect such amount through reductions in 

14 basic pay in accordance with paragraph (1) or through 

15 such other method as the Secretary determines appro16 priate.’’.

17 TITLE II—HOUSING BENEFITS 

18 SEC. 201. INCREASE IN MAXIMUM AMOUNT OF HOUSING 

19 LOAN GUARANTEE. 

20 (a) IN GENERAL.—Subparagraph (A)(i)(IV) of sec21 tion 3703(a)(1) is amended by striking ‘‘$60,000’’ and in22 serting ‘‘$83,425’’. 

23 (b) CONFORMING AMENDMENT.—Subparagraph (B) 

24 of such section is amended by striking ‘‘$60,000’’ and in25 serting ‘‘$83,425’’. 
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1 SEC. 202. PERMANENT AUTHORITY FOR GUARANTEE OF 

2 ADJUSTABLE RATE MORTGAGES. 

3 Section 3707(a) is amended by striking ‘‘The Sec4 retary shall’’ and all that follows through ‘‘guaranteeing 

5 loans’’ and inserting ‘‘The Secretary shall guarantee 

6 loans’’. 

7 SEC. 203. PERMANENT AUTHORITY FOR GUARANTEE OF 

8 HYBRID ADJUSTABLE RATE MORTGAGES AND 

9 MODIFICATION OF GUARANTEE AUTHORITY. 

10 (a) PERMANENT AUTHORITY.—Subsection (a) of sec11 tion 3707A is amended by striking ‘‘The Secretary shall’’ 

12 and all that follows through ‘‘guaranteeing loans’’ and in13 serting ‘‘The Secretary shall guarantee loans’’. 

14 (b) MODIFICATION OF INTEREST RATE ADJUSTMENT

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

16 amended—

17 (1) by striking paragraph (3) and inserting the 

18 following new paragraph (3): 

19 ‘‘(3) in the case of the initial interest rate ad20 justment under such provisions, be limited to a max21 imum increase or decrease of 1 percentage point if 

22 the interest rate remained fixed for 3 or fewer years; 

23 and’’; and 

24 (2) in paragraph (4), by striking ‘‘5 percentage 

25 points’’ and all that follows and inserting ‘‘such 
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1 number of percentage points as the Secretary shall 

2 prescribe for purposes of this section.’’. 

3 (c) NO EFFECT ON GUARANTEE OF LOANS UNDER

4 HYBRID ADJUSTABLE RATE MORTGAGE GUARANTEE

5 DEMONSTRATION PROJECT.—The amendments made by 

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

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

8 of Veterans Affairs under the demonstration project for 

9 the guarantee of hybrid adjustable rate mortgages under 

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

11 on the day before the date of the enactment of this Act. 

12 SEC. 204. TERMINATION OF COLLECTION OF LOAN FEES 

13 FROM VETERANS RATED ELIGIBLE FOR COM14 PENSATION AT PRE-DISCHARGE RATING EX15 AMINATIONS. 

16 Section 3729(c) is amended—

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

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

19 paragraph: 

20 ‘‘(2) A veteran who is rated eligible to receive com21 pensation as a result of a pre-discharge disability examina22 tion and rating shall be treated as receiving compensation 

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

24 the veteran is rated eligible to receive compensation as a 

25 result of the pre-discharge disability examination and rat-
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1 ing without regard to whether an effective date of the 

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

3 TITLE III—OTHER BENEFITS 

4 AND BENEFITS MATTERS 

5 Subtitle A—Employment Benefits 

6 SEC. 301. AVAILABILITY OF ADMINISTRATIVE AND JUDI7 CIAL REDRESS FOR CERTAIN VETERANS DE8 NIED OPPORTUNITY TO COMPETE FOR FED9 ERAL EMPLOYMENT. 

10 (a) ADMINISTRATIVE REDRESS.—Section 

11 3330a(a)(1) of title 5, United States Code, is amended—

12 (1) by inserting ‘‘(A)’’ after ‘‘(1)’’; and 

13 (2) by adding at the end the following new sub14 paragraph: 

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

16 alleges that an agency has violated such section with re17 spect to such veteran may file a complaint with the Sec18 retary of Labor.’’. 

19 (b) JUDICIAL REDRESS.—Section 3330b(a)(1) of 

20 such title is amended by inserting ‘‘, or a veteran described 

21 by section 3330a(a)(1)(B) with respect to a violation de22 scribed by such section,’’ after ‘‘a preference eligible’’.
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1 Subtitle B—Medical Benefits 

2 SEC. 311. PROHIBITION ON COLLECTION OF COPAYMENTS 

3 FOR HOSPICE CARE. 

4 Section 1710B(c)(2) is amended—

5 (1) in subparagraph (A), by striking ‘‘or’’ at 

6 the end; 

7 (2) by redesignating subparagraph (B) as sub8 paragraph (C); and 

9 (3) by inserting after subparagraph (A) the fol10 lowing new subparagraph (B): 

11 ‘‘(B) to a veteran being furnished hospice care 

12 under this section; or’’. 

13 Subtitle C—Extension of Benefits 

14 and Related Authorities 

15 SEC. 321. EXTENSION OF VARIOUS AUTHORITIES RELATING 

16 TO BENEFITS FOR VETERANS. 

17 (a) SIX-YEAR EXTENSION OF BIENNIAL REPORT OF

18 ADVISORY COMMITTEE ON FORMER PRISONERS OF

19 WAR.—Section 541(c)(1) is amended by striking ‘‘2003’’ 

20 and inserting ‘‘2009’’. 

21 (b) PERMANENT AUTHORITY FOR COUNSELING AND

22 TREATMENT FOR SEXUAL TRAUMA.—Section 1720D(a) is 

23 amended—
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1 (1) in paragraph (1), by striking ‘‘During the 

2 period through December 31, 2004, the Secretary’’ 

3 and inserting ‘‘The Secretary’’; and 

4 (2) in paragraph (2), by striking ‘‘, during the 

5 period through December 31, 2004,’’. 

6 (c) FIVE-YEAR EXTENSION OF REPORTS BY SPECIAL

7 MEDICAL ADVISORY GROUP.—Section 7312(d) is amend8 ed by striking ‘‘December 31, 2004’’ and inserting ‘‘De9 cember 31, 2009’’. 

10 Subtitle D—Other Matters 

11 SEC. 331. MODIFICATION OF DEFINITION OF MINORITY 

12 GROUP MEMBER FOR PURPOSES OF ADVI13 SORY COMMITTEE ON MINORITY VETERANS. 

14 Subsection (d) of section 544 is amended to read as 

15 follows: 

16 ‘‘(d) In this section, the term ‘minority group mem17 ber’ means an individual who is—

18 ‘‘(1) American Indian or Alaska Native; 

19 ‘‘(2) Asian; 

20 ‘‘(3) Black or African American; 

21 ‘‘(4) Native Hawaiian or other Pacific Islander; 

22 or 

23 ‘‘(5) of Hispanic, Latino, or Spanish origin.’’.

Æ