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(1) COMPENSATION OF MEMBERS.—Each mem-
ber of the Commission or Task Force who is not an 
officer or employee of the United States shall be 
compensated at a rate equal to the daily equivalent 
of the annual rate of basic pay prescribed for level 
IV of the Executive Schedule under section 5315 of 
title 5, United States Code, for each day (including 
travel time) during which the member is engaged in 
the performance of the duties of the Commission or 
Task Force. All members of the Commission or 
Task Force who are officers or employees of the 
United States shall serve without compensation in 
addition to that received for their services as officers 
or employees of the United States. 
(2) TRAVEL EXPENSES.—The members of the 
Commission or Task Force shall be allowed travel 
expenses, including per diem in lieu of subsistence, 
at rates authorized for employees of agencies under 
subchapter I of chapter 57 of title 5, United States 
Code, while away from their homes or regular places 
of business in the performance of service of the 
Commission or Task Force. 
(3) STAFF.— 
(A) APPOINTMENT.—The chairman of the 
Commission or Task Force may, without regard 
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to the civil service laws and regulations, appoint 
an executive director and such other personnel 
as may be necessary to enable the Commission 
or Task Force to perform its duties. The ap-
pointment of an executive director shall be sub-
ject to the approval of the Commission or Task 
Force. 
(B) COMPENSATION.—The chairman of 
the Commission or Task Force may fix the 
compensation of the executive director and 
other personnel without regard to the provisions 
of chapter 51 and subchapter III of chapter 53 
of title 5, United States Code, relating to classi-
fication of positions and General Schedule pay 
rates, except that the rate of pay for the execu-
tive director and other personnel may not ex-
ceed the rate payable for level V of the Execu-
tive Schedule under section 5316 of such title. 
(4) DETAIL
OF
GOVERNMENT
EMPLOYEES.— 
Upon request of the chairman of the Commission or 
Task Force, the head of any department or agency 
of the Federal Government may detail, on a nonre-
imbursable basis, any personnel of that department 
or agency to the Commission or Task Force to assist 
it in carrying out its duties. 
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(5) PROCUREMENT OF TEMPORARY AND INTER-
MITTENT SERVICES.—The chairman of the Commis-
sion or Task Force may procure temporary and 
intermittent services under section 3109(b) of title 
5, United States Code, at rates for individuals which 
do not exceed the daily equivalent of the annual rate 
of basic pay prescribed for level V of the Executive 
Schedule under section 5316 of such title. 
(h) TERMINATION
OF
COMMISSION
OR
TASK 
FORCE.—The Commission or Task Force shall terminate 
60 days after the date on which the Commission or Task 
Force submits the final comprehensive report under sub-
section (c)(3). 
(i) FUNDING.— 
(1) IN GENERAL.—The Secretary shall, upon 
the request of the chairman of the Commission or 
Task Force, make available to the Commission or 
Task Force such amounts as the Commission or 
Task Force may require to carry out the duties of 
the Commission or Task Force under this section. 
(2) AVAILABILITY.—Any sums made available 
to the Commission or Task Force shall remain avail-
able, without fiscal year limitation, until the termi-
nation of the Commission or Task Force. 
(j) DEFINITIONS.—In this section: 
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(1) The term ‘‘appeals process’’ means the 
process to appeal the determination by the Secretary 
of a claim beginning with the notice of disagreement 
filed pursuant to section 7105 of title 38, United 
States Code, and ending with the review of a deci-
sion by the Supreme Court pursuant to section 
7292(c) of such title. 
(2) The term ‘‘Board’’ means the Board of Vet-
erans’ Appeals. 
(3) The term ‘‘strategic plan’’ means the Stra-
tegic Plan to Eliminate the Compensation Claims 
Backlog, published by the Secretary of Veterans Af-
fairs on January 25, 2013. 
SEC. 102. SUPPLEMENTAL REPORTS TO THE STRATEGIC 
PLAN TO ELIMINATE THE COMPENSATION 
CLAIMS BACKLOG. 
Not later than 60 days after the date of the enact-
ment of this Act, and every 120 days thereafter until Me-
morial Day (May 25), 2015, the Secretary of Veterans Af-
fairs shall submit to Congress a supplemental report on 
the implementation by the Department of Veterans Affairs 
of the Strategic Plan to Eliminate the Compensation 
Claims Backlog. Each such report shall include— 
(1) verification that during the period covered 
by the report, each claim was approved or denied by 
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not later than 125 days after the date on which the 
claim is submitted with an accuracy rate of 98 per-
cent, as specified in the Strategic Plan; 
(2) a description of the specific measures, pro-
cedures, and metrics used to assess the implementa-
tion of the Strategic Plan for purposes of the supple-
mental report; and 
(3) a detailed timeline for the implementation 
of each initiative contained in the Strategic Plan. 
SEC. 
103. 
EXPEDITION 
OF 
TRANSFER 
OF 
CERTAIN 
RECORDS. 
(a) SSA RECORDS.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary of Vet-
erans Affairs shall enter into an agreement with the Com-
missioner of the Social Security Administration to ensure 
that the Commissioner transfers to the Secretary disability 
or medical records of the Commissioner that the Secretary 
will use to evaluate a claim by not later than 30 days after 
the Secretary requests such records. 
(b) DOD RECORDS.—Not later than 60 days after 
the date of the enactment of this Act, the Secretary of 
Veterans Affairs shall enter into an agreement with the 
Secretary of Defense to ensure that the Secretary of De-
fense transfers to the Secretary of Veterans Affairs med-
ical records of members or former members of the Armed 
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Forces that the Secretary will use to evaluate a claim by 
not later than 30 days after the Secretary requests such 
records. 
(c) NATIONAL GUARD RECORDS.—Not later than 60 
days after the date of the enactment of this Act, the Sec-
retary of Veterans Affairs and the Secretary of Defense 
shall jointly— 
(1) submit to Congress a plan to reduce to 30 
days the amount of time needed to provide members 
of the National Guard and the Secretary of Veterans 
Affairs with the medical records of such members, 
including by partnering with appropriate officials of 
Federal or State departments or agencies; and 
(2) implement such plan. 
(d) EFFECTIVE DATE.—This section shall take effect 
on the date that is one year after the date of the enact-
ment of this Act. 
SEC. 104. CLAIMS PROCESSORS TRAINING. 
(a) ESTABLISHMENT.—The Secretary of Veterans 
Affairs shall establish a training program to provide newly 
hired claims processors of the Department of Veterans Af-
fairs with training for a period of not less than two years. 
In carrying out such program, the Secretary shall identify 
successful claims processors of the Department who can 
assist in the training of newly hired claims processors. 
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(b) ABILITY TO PROCESS CLAIMS.—The Secretary 
shall carry out the training program established under 
subsection (a) without increasing the amount of time in 
which claims are processed by the Department. 
(c) EFFECTIVE DATE.—This section shall take effect 
on the date that is one year after the date of the enact-
ment of this Act. 
SEC. 105. REPORT BY COMPTROLLER GENERAL OF THE 
UNITED STATES. 
Not later than one year after the date of the enact-
ment of this Act, the Comptroller General of the United 
States shall submit to Congress a report on the progress 
of the Secretary of Veterans Affairs in improving the time-
liness of claims processing and eliminating the backlog of 
claims. The report shall include any recommendations of 
the Comptroller General with respect to improving the 
ability of the Secretary to make such progress. 
SEC. 106. PRIORITY FOR PROCESSING CLAIMS OF THE DE-
PARTMENT OF VETERANS AFFAIRS. 
(a) IN GENERAL.—Subchapter I of chapter 51 of title 
38, United States Code, is amended by adding at the end 
the following new section: 
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‘‘§ 5109C. Priority for processing claims 
‘‘(a) PRIORITY.—In processing claims for compensa-
tion under this chapter, the Secretary shall provide the 
following claimants with priority over other claimants: 
‘‘(1) Veterans who have attained the age of 70. 
‘‘(2) Veterans who are terminally ill. 
‘‘(3) Veterans with life-threatening illnesses. 
‘‘(4) Homeless veterans (as defined in section 
2002 of this title). 
‘‘(5) Veterans who were awarded the Medal of 
Honor. 
‘‘(6) Veterans who are former prisoners of war. 
‘‘(7) Veterans whose claims are being reviewed 
again in relation to a previously denied claim relat-
ing to military sexual trauma. 
‘‘(8) Veterans whom the Secretary determines, 
on a case-by-case basis, are seriously or very seri-
ously injured. 
‘‘(9) Veterans whom the Secretary determines, 
on a case-by-case basis, should be given priority 
under this section based on an application for good 
cause established by the Secretary. 
‘‘(b) REGULATIONS.—The Secretary shall prescribe 
regulations to carry out subsection (a).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
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after the item relating to section 5109B the following new 
item: 
‘‘5109C. Priority for processing claims.’’. 
SEC. 107. PUBLIC AVAILABILITY OF CERTAIN INFORMA-
TION 
ABOUT 
PENDING 
AND 
COMPLETED 
CLAIMS FOR COMPENSATION UNDER THE 
LAWS ADMINISTERED BY THE SECRETARY OF 
VETERANS AFFAIRS. 
(a) IN GENERAL.—Subchapter I of chapter 51 of title 
38, United States Code, is amended by adding after sec-
tion 5109C, as added by section 106, the following new 
section: 
‘‘§ 5109D. Information about pending and completed 
claims 
‘‘(a) AVAILABILITY
OF INFORMATION.—The Sec-
retary shall maintain on the Internet website of the De-
partment publicly accessible information about pending 
and completed claims for compensation under chapter 11 
of this title. Such information shall include each of the 
following: 
‘‘(1) For each regional office and for the De-
partment as a whole— 
‘‘(A) the average number of days between 
the date of the submittal of a claim and the 
date of the decision with respect to the claim 
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for each of the preceding three-month and one- 
year period; 
‘‘(B) the average number of days such a 
claim is pending during the preceding three- 
month and one-year periods; 
‘‘(C) the quality and accuracy rating of the 
claims adjudication process during the pre-
ceding three-month and one-year periods; 
‘‘(D) the number of claims pending; 
‘‘(E) the number of pending claims that 
have been pending for more than 125 days; and 
‘‘(F) the number of claims completed dur-
ing— 
‘‘(i) the current month, to date; 
‘‘(ii) the month preceding the current 
month; 
‘‘(iii) the current calendar year, to 
date; and 
‘‘(iv) the calendar year preceding the 
current calendar year. 
‘‘(2) For each medical condition for which a 
claim for compensation is submitted, for each re-
gional office and for the Department as a whole— 
‘‘(A) the average number of days between 
the date of the submittal of a claim relating to 
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such medical condition and the date of the deci-
sion with respect to the claim for each of the 
preceding three-month and one-year period; 
‘‘(B) the average number of days such a 
claim is pending during the preceding three- 
month and one-year periods; 
‘‘(C) the quality and accuracy rating of the 
claims adjudication process as applied to claims 
relating to such medical condition during the 
preceding three-month and one-year periods; 
‘‘(D) the number of pending claims relat-
ing to such condition; 
‘‘(E) the number of such pending claims 
that have been pending for more than 125 days; 
and 
‘‘(F) the number of claims relating to such 
medical condition completed during— 
‘‘(i) the current month, to date; 
‘‘(ii) the month preceding current 
month; 
‘‘(iii) the current calendar year, to 
date; and 
‘‘(iv) the calendar year preceding the 
current calendar year. 
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‘‘(b) UPDATES.—The Secretary shall update the in-
formation on the website under subsection (a) not less fre-
quently than once every seven days.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
after the item relating to section 5109C, as added by sec-
tion 106, the following new item: 
‘‘5109D. Information about pending and completed claims.’’. 
SEC. 108. ANNUAL REPORT ON PROCESSING OF CLAIMS. 
(a) IN GENERAL.—Subchapter I of chapter 51 of title 
38, United States Code, is amended by adding after sec-
tion 5109D, as added by section 107, the following new 
section: 
‘‘§ 5109E. Annual report on processing of claims 
‘‘(a) ANNUAL REPORT.—The Secretary shall include 
in the annual report to Congress required under section 
529 of this title information on the following: 
‘‘(1) The automatic processing of claims for 
compensation. 
‘‘(2) The performance of any regional office 
that fails to meet the administrative goals of the re-
gional office with respect to timeliness and accuracy 
in processing claims for compensation. 
‘‘(3) The timeliness of receiving information 
pursuant to a request by the Secretary to the head 
of another department or agency of the United 
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States for information required by the Secretary in 
adjudicating a claim for compensation under chapter 
11 of this title. 
‘‘(b) MATTERS INCLUDED.—In carrying out sub-
section (a) to include information in the report required 
under section 529 of this title, the Secretary shall include 
the following: 
‘‘(1) With respect to the information required 
by subsection (a)(1)— 
‘‘(A) each medical condition for which 
claims relating to such condition were processed 
in an electronic automated fashion during the 
fiscal year covered by the report; 
‘‘(B) the feasibility of processing any addi-
tional medical conditions in an electronic auto-
mated fashion and any barriers to such proc-
essing, including any such barriers relating to 
the schedule for rating disabilities under section 
1155 of this title; 
‘‘(C) the number of claims for compensa-
tion relating to each medical condition sub-
mitted during such fiscal year; and 
‘‘(D) for each medical condition, the per-
centage of claims denied and the percentage of 
claims approved during such fiscal year. 
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‘‘(2) With respect to the information required 
by subsection (a)(2), in the case of any regional of-
fice that, for the fiscal year covered by the report, 
did not meet the administrative goal of having no 
claim pending for more than 125 days and achieving 
an accuracy rating of 98 percent— 
‘‘(A) a signed statement prepared by the 
individual serving as director of the regional of-
fice as of the date of the submittal of the report 
containing— 
‘‘(i) an explanation for why the re-
gional office did not meet the goal; 
‘‘(ii) a description of the additional re-
sources needed to enable the regional office 
to reach the goal; and 
‘‘(iii) a description of any additional 
actions planned for the subsequent fiscal 
year that are proposed to enable the re-
gional office to meet the goal; and 
‘‘(B) a statement prepared by the Under 
Secretary for Benefits explaining how the fail-
ure of the regional office to meet the goal af-
fected the performance evaluation of the direc-
tor of the regional office. 
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‘‘(3) With respect to the information required 
by subsection (a)(3)— 
‘‘(A) the number of requests described in 
such paragraph made during the fiscal year 
covered by the report; and 
‘‘(B) the average response time for such 
requests made during each month of such fiscal 
year, as determined based on the period begin-
ning on the date on which the Secretary made 
the request and ending on the date on which 
the Secretary determines that the request is 
completed.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
after the item relating to section 5109D, as added by sec-
tion 107, the following new item: 
‘‘5109E. Annual report on processing of claims.’’. 
(c) EFFECTIVE DATE.—Section 5109E of title 38, 
United States Code, as added by subsection (a) shall take 
effect on the date that is one year after the date of the 
enactment of this Act. 
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SEC. 109. DEPARTMENT OF VETERANS AFFAIRS NOTICE OF 
AVERAGE TIMES FOR PROCESSING CLAIMS 
AND PERCENTAGE OF CLAIMS APPROVED. 
(a) PUBLIC NOTICE.—The Secretary of Veterans Af-
fairs shall post the information described in subsection 
(c)— 
(1) in a conspicuous place in each regional of-
fice and claims intake facilities of the Department of 
Veterans Affairs; and 
(2) on the Internet website of the Department. 
(b) NOTICE TO APPLICANTS.— 
(1) IN GENERAL.—The Secretary shall provide 
to each person who submits a claim for benefits 
under the laws administered by the Secretary before 
the person submits such claim— 
(A) notice of the information described in 
subsection (c); and 
(B) notice that, during the period ending 
on August 6, 2015, the person is eligible to re-
ceive up to an extra year of benefits payments 
if the person files an original claim that is fully 
developed. 
(2) ACKNOWLEDGMENT
OF
RECEIPT
OF
NO-
TICE.—Each person who submits a claim for bene-
fits under the laws administered by the Secretary 
shall include in such application a signed form ac-
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knowledging that the person received the informa-
tion described in subsection (c). 
(c) INFORMATION DESCRIBED.— 
(1) IN GENERAL.—The information described in 
this subsection is the following: 
(A) The average processing time of the 
claims described in paragraph (2) and the per-
centage of such submitted claims for which ben-
efits are awarded. 
(B) The percentage of each of the fol-
lowing types of submitted claims for benefits 
under the laws administered by the Secretary of 
Veterans Affairs for which benefits are award-
ed: 
(i) Claims filed by veterans who au-
thorized a veterans service organization to 
act on the veterans’ behalf under a durable 
power of attorney. 
(ii) Claims filed by veterans who au-
thorized a person other than a veterans 
service organization to act on the veterans’ 
behalf under a durable power of attorney. 
(iii) Claims filed by veterans who did 
not authorize a person to act on the vet-
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erans’ behalf under a durable power of at-
torney. 
(2) CLAIMS DESCRIBED.—The claims described 
in this paragraph are each of the following types of 
claims for benefits under the laws administered by 
the Secretary of Veterans Affairs: 
(A) A fully developed claim that is sub-
mitted in standard electronic form. 
(B) A fully developed claim that is sub-
mitted in standard paper form. 
(C) A claim that is not fully developed that 
is submitted in standard electronic form. 
(D) A claim that is not fully developed 
that is submitted in standard paper form. 
(E) A claim that is not fully developed that 
is submitted in nonstandard paper form. 
(3) UPDATE OF INFORMATION.—The informa-
tion described in this subsection shall be updated not 
less frequently than once each fiscal quarter. 
(d) EFFECTIVE DATE.—This section shall take effect 
on the date that is one year after the date of the enact-
ment of this Act. 
SEC. 110. CLAIM DEFINED. 
Except as otherwise provided, in this title, the term 
‘‘claim’’ means a claim for disability compensation under 
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the laws administered by the Secretary of Veterans Af-
fairs. 
TITLE II—COMPENSATION AND 
PENSIONS 
SEC. 201. IMPROVEMENTS TO AUTHORITY FOR PERFORM-
ANCE OF MEDICAL DISABILITIES EXAMINA-
TIONS BY CONTRACT PHYSICIANS. 
(a) EXTENSION OF TEMPORARY AUTHORITY.—Sub-
section (c) of section 704 of the Veterans Benefits Act 
of 2003 (38 U.S.C. 5101 note) is amended by striking 
‘‘December 31, 2013’’ and inserting ‘‘December 31, 
2016’’. 
(b) LICENSURE OF CONTRACT PHYSICIANS.— 
(1) TEMPORARY
AUTHORITY.—Such section 
704 is further amended— 
(A) by redesignating subsection (d) as sub-
section (e); and 
(B) by inserting after subsection (c) the 
following new subsection (d): 
‘‘(d) LICENSURE OF CONTRACT PHYSICIANS.— 
‘‘(1) IN GENERAL.—Notwithstanding any law 
regarding the licensure of physicians, a physician de-
scribed in paragraph (2) may conduct an examina-
tion pursuant to a contract entered into under sub-
section (b) at any location in any State, the District 
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of Columbia, or a Commonwealth, territory, or pos-
session of the United States, so long as the examina-
tion is within the scope of the authorized duties 
under such contract. 
‘‘(2) PHYSICIAN DESCRIBED.—A physician de-
scribed in this paragraph is a physician who— 
‘‘(A) has a current license to practice the 
health care profession of the physician; and 
‘‘(B) is performing authorized duties for 
the Department of Veterans Affairs pursuant to 
a contract entered into under subsection (b).’’. 
(2) PILOT PROGRAM.—Section 504 of the Vet-
erans’ Benefits Improvement Act of 1996 (38 
U.S.C. 5101 note) is amended— 
(A) by redesignating subsections (c) and 
(d) as subsections (d) and (e), respectively; and 
(B) by inserting after subsection (b) the 
following new subsection (c): 
‘‘(c) LICENSURE OF CONTRACT PHYSICIANS.— 
‘‘(1) IN GENERAL.—Notwithstanding any law 
regarding the licensure of physicians, a physician de-
scribed in paragraph (2) may conduct an examina-
tion pursuant to a contract entered into under sub-
section (a) at any location in any State, the District 
of Columbia, or a Commonwealth, territory, or pos-
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session of the United States, so long as the examina-
tion is within the scope of the authorized duties 
under such contract. 
‘‘(2) PHYSICIAN DESCRIBED.—A physician de-
scribed in this paragraph is a physician who— 
‘‘(A) has a current license to practice the 
health care profession of the physician; and 
‘‘(B) is performing authorized duties for 
the Department of Veterans Affairs pursuant to 
a contract entered into under subsection (a).’’. 
(c) EXPANSION OF PILOT PROGRAM.—Subsection (b) 
of such section 504 is amended to read as follows: 
‘‘(b) LOCATIONS.— 
‘‘(1) NUMBER.—The Secretary may carry out 
the pilot program under this section through not 
more than 15 regional offices of the Department of 
Veterans Affairs. 
‘‘(2) SELECTION.—The Secretary shall select 
the regional offices under paragraph (1) by ana-
lyzing appropriate data to determine the regional of-
fices that require support. Such appropriate data 
shall include— 
‘‘(A) the number of backlogged claims; 
‘‘(B) the total pending case workload; 
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‘‘(C) the length of time cases have been 
pending; 
‘‘(D) the accuracy of completed cases; 
‘‘(E) the overall timeliness of completed 
cases; 
‘‘(F) the availability and workload of the 
examination units and physicians of the medical 
centers in the regional office; and 
‘‘(G) any other data the Secretary deter-
mines appropriate. 
‘‘(3) ANNUAL ANALYSIS.—The Secretary shall 
carry out the data analysis of the regional offices 
under paragraph (2) during each year in which the 
program under this section is carried out to deter-
mine the regional offices selected under paragraph 
(1) for such year.’’. 
(d) EFFECTIVE DATE.—This section and the amend-
ment made by this section shall take effect on the date 
that is one year after the date of the enactment of this 
Act. 
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SEC. 202. CONSIDERATION BY SECRETARY OF VETERANS 
AFFAIRS OF RESOURCES DISPOSED OF FOR 
LESS THAN FAIR MARKET VALUE BY INDIVID-
UALS APPLYING FOR PENSION. 
(a) VETERANS.—Section 1522 of title 38, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘(1)’’ before ‘‘The Sec-
retary’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2)(A) If a veteran otherwise eligible for payment 
of pension under section 1513 or 1521 of this title or the 
spouse of such veteran disposes of covered resources for 
less than fair market value on or after the look-back date 
described in subparagraph (C)(i), the Secretary shall deny 
or discontinue the payment of pension to such veteran 
under section 1513 or 1521 of this title, as the case may 
be, for months during the period beginning on the date 
described in subparagraph (D) and equal to the number 
of months calculated as provided in subparagraph (E). 
‘‘(B)(i) For purposes of this paragraph, a covered re-
source is any resource that was a part of the corpus of 
the estate of the veteran or, if the veteran has a spouse, 
the corpus of the estates of the veteran and of the vet-
eran’s spouse, that the Secretary considers that under all 
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the circumstances, if the veteran or spouse had not dis-
posed of such resource, it would be reasonable that the 
resource (or some portion of the resource) be consumed 
for the veteran’s maintenance. 
‘‘(ii) For purposes of this paragraph, the Secretary 
may consider, in accordance with regulations the Sec-
retary shall prescribe, a transfer of an asset (including a 
transfer of an asset to an annuity, trust, or other financial 
instrument or investment) a disposal of a covered resource 
for less than fair market value if such transfer reduces 
the amount in the corpus of the estate of the veteran or, 
if the veteran has a spouse, the corpus of the estates of 
the veteran and of the veteran’s spouse, that the Secretary 
considers, under all the circumstances, would be reason-
able to be consumed for the veteran’s maintenance. 
‘‘(C)(i) The look-back date described in this clause 
is a date that is 36 months before the date described in 
clause (ii). 
‘‘(ii) The date described in this clause is the date on 
which the veteran applies for pension under section 1513 
or 1521 of this title or, if later, the date on which the 
veteran (or the spouse of the veteran) disposes of covered 
resources for less than fair market value. 
‘‘(D) The date described in this subparagraph is the 
first day of the first month in or after which covered re-
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sources were disposed of for less than fair market value 
and which does not occur in any other period of ineligi-
bility under this paragraph. 
‘‘(E) The number of months calculated under this 
subparagraph shall be equal to— 
‘‘(i) the total, cumulative uncompensated value 
of the portion of covered resources so disposed of by 
the veteran (or the spouse of the veteran) on or 
after the look-back date described in subparagraph 
(C)(i) that the Secretary determines would reason-
ably have been consumed for the veteran’s mainte-
nance; divided by 
‘‘(ii) the maximum amount of monthly pension 
that is payable to a veteran under section 1513 or 
1521 of this title, including the maximum amount of 
increased pension payable under such sections on ac-
count of family members, but not including any 
amount of pension payable under such sections be-
cause a veteran is in need of regular aid and attend-
ance or is permanently housebound, 
rounded, in the case of any fraction, to the nearest whole 
number, but shall not in any case exceed 36 months.’’; 
(2) in subsection (b)— 
(A) by inserting ‘‘(1)’’ before ‘‘The Sec-
retary’’; and 
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(B) by adding at the end the following new 
paragraph: 
‘‘(2)(A) If a veteran otherwise eligible for payment 
of increased pension under subsection (c), (d), (e), or (f) 
of section 1521 of this title on account of a child, the 
spouse of the veteran, or the child disposes of covered re-
sources for less than fair market value on or after the 
look-back date described in subparagraph (C)(i), the Sec-
retary shall deny or discontinue payment of such increased 
pension for months during the period beginning on the 
date described in subparagraph (D) and equal to the num-
ber of months calculated as provided in subparagraph (E). 
‘‘(B)(i) For purposes of this paragraph, a covered re-
source is any resource that was a part of the corpus of 
the estate of the child that the Secretary considers that 
under all the circumstances, if the veteran, the spouse of 
the veteran, or the child had not disposed of such resource, 
it would be reasonable that the resource (or some portion 
of the resource) be consumed for the child’s maintenance. 
‘‘(ii) For purposes of this paragraph, the Secretary 
may consider, in accordance with regulations the Sec-
retary shall prescribe, a transfer of an asset (including a 
transfer of an asset to an annuity, trust, or other financial 
instrument or investment) a disposal of a covered resource 
for less than fair market value if such transfer reduces 
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the amount in the corpus of the estate of the child that 
the Secretary considers, under all the circumstances, 
would be reasonable to be consumed for the child’s mainte-
nance. 
‘‘(C)(i) The look-back date described in this clause 
is a date that is 36 months before the date described in 
clause (ii). 
‘‘(ii) The date described in this clause is the date on 
which the veteran applies for payment of increased pen-
sion under subsection (c), (d), (e), or (f) of section 1521 
of this title on account of a child or, if later, the date 
on which the veteran, the spouse of the veteran, or the 
child disposes of covered resources for less than fair mar-
ket value. 
‘‘(D) The date described in this subparagraph is the 
first day of the first month in or after which covered re-
sources were disposed of for less than fair market value 
and which does not occur in any other period of ineligi-
bility under this paragraph. 
‘‘(E) The number of months calculated under this 
subparagraph shall be equal to— 
‘‘(i) the total, cumulative uncompensated value 
of the portion of covered resources so disposed of by 
the veteran, the spouse of the veteran, or the child 
on or after the look-back date described in subpara-
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graph (C)(i) that the Secretary determines would 
reasonably have been consumed for the child’s main-
tenance; divided by 
‘‘(ii) the maximum amount of increased month-
ly pension that is payable to a veteran under sub-
section (c), (d), (e), or (f) of section 1521 of this 
title on account of a child, 
rounded, in the case of any fraction, to the nearest whole 
number, but shall not in any case exceed 36 months.’’; 
and 
(3) by adding at the end the following new sub-
sections: 
‘‘(c)(1) The Secretary shall not deny or discontinue 
payment of pension under section 1513 or 1521 of this 
title or payment of increased pension under subsection (c), 
(d), (e), or (f) of section 1521 of this title on account of 
a child by reason of the application of subsection (a)(2) 
or (b)(2) of this section to the disposal of resources by 
an individual to the extent that— 
‘‘(A) a satisfactory showing is made to the Sec-
retary (in accordance with regulations promulgated 
by the Secretary) that all resources disposed of for 
less than fair market value have been returned to 
the individual who disposed of the resources; or 
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‘‘(B) the Secretary determines, under proce-
dures established by the Secretary, that the denial 
or discontinuance of payment would work an undue 
hardship as determined on the basis of criteria es-
tablished by the Secretary. 
‘‘(2) At the time a veteran applies for pension under 
section 1513 or 1521 of this title or increased pension 
under subsection (c), (d), (e), or (f) of section 1521 of 
this title on account of a child, and at such other times 
as the Secretary considers appropriate, the Secretary 
shall— 
‘‘(A) inform such veteran of the provisions of 
subsections (a)(2) and (b)(2) providing for a period 
of ineligibility for payment of pension under such 
sections for individuals who make certain disposi-
tions of resources for less than fair market value; 
and 
‘‘(B) obtain from such veteran information 
which may be used in determining whether or not a 
period of ineligibility for such payments would be re-
quired by reason of such subsections. 
‘‘(d) Subsections (a)(2) and (b)(2) shall not apply 
with respect to the disposal of resources or the transfer 
of an asset if such disposal or transfer is to a trust de-
scribed in section 1917(d)(4) of the Social Security Act 
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(42 U.S.C. 1396p(d)(4)) that is established for the benefit 
of a child of the veteran.’’. 
(b) SURVIVING SPOUSES AND CHILDREN.—Section 
1543 of such title is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraph (2) as 
paragraph (3); 
(B) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2)(A) If a surviving spouse otherwise eligible for 
payment of pension under section 1541 of this title dis-
poses of covered resources for less than fair market value 
on or after the look-back date described in subparagraph 
(C)(i), the Secretary shall deny or discontinue the pay-
ment of pension to such surviving spouse under section 
1541 of this title for months during the period beginning 
on the date described in subparagraph (D) and equal to 
the number of months calculated as provided in subpara-
graph (E). 
‘‘(B)(i) For purposes of this paragraph, a covered re-
source is any resource that was a part of the corpus of 
the estate of the surviving spouse that the Secretary con-
siders that under all the circumstances, if the surviving 
spouse had not disposed of such resource, it would be rea-
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sonable that the resource (or some portion of the resource) 
be consumed for the surviving spouse’s maintenance. 
‘‘(ii) For purposes of this paragraph, the Secretary 
may consider, in accordance with regulations the Sec-
retary shall prescribe, a transfer of an asset (including a 
transfer of an asset to an annuity, trust, or other financial 
instrument or investment) a disposal of a covered resource 
for less than fair market value if such transfer reduces 
the amount in the corpus of the estate of the surviving 
spouse that the Secretary considers, under all the cir-
cumstances, would be reasonable to be consumed for the 
surviving spouse’s maintenance. 
‘‘(C)(i) The look-back date described in this clause 
is a date that is 36 months before the date described in 
clause (ii). 
‘‘(ii) The date described in this clause is the date on 
which the surviving spouse applies for pension under sec-
tion 1541 of this title or, if later, the date on which the 
surviving spouse disposes of covered resources for less 
than fair market value. 
‘‘(D) The date described in this subparagraph is the 
first day of the first month in or after which covered re-
sources were disposed of for less than fair market value 
and which does not occur in any other period of ineligi-
bility under this paragraph. 
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