SEC. 102. PRESUMPTION OF PERMANENT AND TOTAL DIS-
ABILITY FOR VETERANS OVER AGE 65 WHO
ARE NURSING HOME PATIENTS.
Section 1502(a) is amended by inserting ‘‘is 65 years
of age or older and a patient in a nursing home or, regard-
less of age,’’ after ‘‘such a person’’.
SEC. 103. PILOT PROGRAM FOR USE OF CONTRACT PHYSI-
CIANS FOR DISABILITY EXAMINATIONS.
(a) AUTHORITY.—The Secretary of Veterans Affairs
may conduct a pilot program under this section under
which examinations with respect to medical disability of
applicants for benefits under laws administered by the
Secretary that are carried out through the Under Sec-
retary for Benefits may be made by persons other than
employees of the Department of Veterans Affairs pursuant
to contracts entered into with those persons.
(b) LIMITATION.—The Secretary may carry out the
pilot program under this section through not more than
10 regional offices of the Department of Veterans Affairs.
(c) SOURCE
OF FUNDS.—Payments for contracts
under the pilot program under this section shall be made
from amounts available to the Secretary of Veterans Af-
fairs for payment of examinations of applicants for bene-
fits.
(d) REPORT TO CONGRESS.—Not later than three
years after the date of the enactment of this Act, the Sec-
retary shall submit to Congress a report on the effect of
the use of the authority provided by subsection (a) on the
cost, timeliness, and thoroughness of medical disability ex-
aminations.
SEC. 104. LIMITATION ON CLOTHING ALLOWANCE FOR IN-
CARCERATED VETERANS.
(a) PRO RATA REDUCTION.—Chapter 53 is amended
by inserting after section 5313 the following new section:
‘‘§ 5313A. Limitation on payment of clothing allow-
ance to incarcerated veterans
‘‘In the case of a veteran who is incarcerated in a
Federal, State, or local penal institution for a period in
excess of 60 days and who is furnished clothing without
charge by the institution, the amount of an annual cloth-
ing allowance payable to such veteran under section 1162
of this title shall be reduced on a pro rata basis for each
day on which the veteran was so incarcerated during the
12-month period preceding the date on which payment of
the allowance would be due. This section shall be carried
out under regulations prescribed by the Secretary.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 5313 the following new
item:
‘‘5313A. Limitation on payment of clothing allowance to incarcerated veterans.’’.
SEC. 105. EXTENSION OF VETERANS’ CLAIMS ADJUDICA-
TION COMMISSION.
(a) EXTENSION OF TIME FOR SUBMISSION OF FINAL
REPORT.—Section 402(e)(2) of the Veterans’ Benefits
Improvements Act of 1994 (Public Law 103–446; 108
Stat. 4659) is amended by striking out ‘‘Not later than
18 months after such date’’ and inserting in lieu thereof
‘‘Not later than December 31, 1996’’.
(b) FUNDING.—From amounts appropriated to the
Department of Veterans Affairs for each of fiscal years
1996 and fiscal year 1997 for the payment of compensa-
tion and pension, the amount of $75,000 is hereby made
available for the activities of the Veterans’ Claims Adju-
dication Commission under title IV of the Veterans’ Bene-
fits Improvements Act of 1994 (Public Law 103–446; 108
Stat. 4659).
TITLE 
II—EDUCATION 
AND
OTHER READJUSTMENT BEN-
EFITS
SEC. 201. PERIOD OF OPERATION FOR APPROVAL.
(a) IN GENERAL.—(1) Chapter 36 is amended—
(A) by striking out section 3689; and
(B) by striking out the item relating to section
3689 in the table of sections at the beginning of
chapter 36.
(2) Subparagraph (C) of section 3680A(d)(2) is
amended by striking out ‘‘3689(b)(6)’’ and inserting in
lieu thereof ‘‘3680A(g)’’.
(b) DISAPPROVAL
OF ENROLLMENT
IN CERTAIN
COURSES.—Section 3680A is amended by adding after
subsection (d) the following new subsections:
‘‘(e) The Secretary shall not approve the enrollment
of an eligible veteran in a course not leading to a standard
college degree offered by a proprietary profit or propri-
etary nonprofit educational institution when—
‘‘(1) the educational institution has been oper-
ating for less than two years;
‘‘(2) the course is offered at a branch of the
educational institution and the branch has been op-
erating for less than two years; or
‘‘(3) following either a change in ownership or
a complete move outside its original general locality
the educational institution does not retain substan-
tially the same faculty, student body, and courses, as
determined in accordance with regulations the Sec-
retary shall prescribe, as before the change in owner-
ship or the move outside the general locality.
‘‘(f) The Secretary shall not approve the enrollment
of an eligible veteran in a course as a part of a program
of education offered by an educational institution when the
course is provided under contract by another educational
institution or entity and—
‘‘(1) the Secretary would be barred under sub-
section (e) from approving the enrollment of an eli-
gible veteran in the course of the educational institu-
tion or entity providing the course under contract; or
‘‘(2) the educational institution or entity provid-
ing the course under contract has not obtained ap-
proval for the course under this chapter.
‘‘(g) Notwithstanding subsections (e) and (f), the
Secretary may approve the enrollment of an eligible vet-
eran in a course approved under this chapter if the course
is offered by an educational institution under contract
with the Department of Defense or the Department of
Transportation and is given on or immediately adjacent
to a military base, Coast Guard station, National Guard
facility, or facility of the Selected Reserve.’’.
(c) APPROVAL
OF ACCREDITED COURSES.—Sub-
section (b) of section 3675 is amended to read as follows:
‘‘(b) As a condition of approval under this section,
the State approving agency must find the following:
‘‘(1) Adequate records, as prescribed by the
State approving agency, are kept by the educational
institution to show the student’s progress and
grades and that satisfactory standards relating to
progress and conduct are enforced.
‘‘(2) The educational institution maintains a
written record of the previous education and training
of the eligible person or veteran that clearly indi-
cates that appropriate credit has been given by the
educational institution for previous education and
training, with the training period shortened propor-
tionately.
‘‘(3) The educational institution and its ap-
proved courses meet the criteria of paragraphs (1),
(2), and (3) of section 3676(c) of this title.’’.
SEC. 202. ELIMINATION OF DISTINCTION BETWEEN OPEN
CIRCUIT TV AND INDEPENDENT STUDY.
(a) VETERANS’ EDUCATIONAL ASSISTANCE PRO-
GRAM.—Subsection (f) of section 3482 is amended by
striking out ‘‘in part’’.
(b) SURVIVORS’ AND DEPENDENTS’ EDUCATIONAL
ASSISTANCE.—Section 3523 is amended—
(1) in subsection (a)(4), by inserting ‘‘(includ-
ing open circuit television)’’ after ‘‘independent
study program’’ the second place it appears; and
(2) in subsection (c), by striking out ‘‘radio’’
and all that follows through the end and inserting
in lieu thereof ‘‘radio.’’.