SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Veterans Disability Benefits Claims Modernization Act 
of 2008’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Readjustment of schedule for rating disabilities. 
Sec. 3. Study on employee work credit system of Veterans Benefits Administra-
tion. 
Sec. 4. Study on work management system. 
Sec. 5. Certification and training of employees of Veterans Benefits Adminis-
tration responsible for processing claims. 
Sec. 6. Enhancement of use of information technology at Veterans Benefits Ad-
ministration. 
Sec. 7. Treatment of claims upon death of claimant. 
SEC. 2. READJUSTMENT OF SCHEDULE FOR RATING DIS-
ABILITIES. 
(a) STUDY.— 
(1) IN GENERAL.—The Secretary of Veterans 
Affairs shall conduct a study on adjusting the sched-
ule for rating disabilities adopted and applied by the 
Secretary under section 1155 of title 38, United 
States Code, so as to base the schedule on stand-
ards, practices, and codes in common use by the 
medical, mental health, and disability professions 
that are current as of the date of the enactment of 
this Act. 
(2) CONTENTS.—In conducting the study under 
this subsection, the Secretary shall— 
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(A) determine how the schedule could be 
adjusted to take into account the loss of quality 
of life and loss of earnings that result from spe-
cific disabilities; 
(B) examine the nature of the disabilities 
for which disability compensation is payable 
under laws other than laws administered by the 
Secretary; 
(C) examine whether disparities exist be-
tween the rating of physical and mental disabil-
ities, especially with respect to how the severity 
of mental disabilities should be adjudicated to 
ensure parity with physical disabilities whereby 
a veteran can be rated totally disabled while 
maintaining some level of employment; 
(D) measure the effect of disabilities on 
the psychological states, physical integrity, and 
social adaptability of veterans with such disabil-
ities; and 
(E) examine the effect of a veteran’s injury 
or combination of injuries on— 
(i) the average loss of the veteran’s 
earnings capacity, including the veteran’s 
inability to work in certain occupations; 
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(ii) the veteran’s quality of life, in-
cluding activities of independent living, rec-
reational and community activities, and 
personal relationships, including the inabil-
ity to participate in favorite activities, so-
cial problems related to disfigurement or 
cognitive difficulties, and the need to spend 
increased amounts of time performing ac-
tivities of daily living; and 
(iii) the extent to which benefits for 
veterans may be used to encourage vet-
erans to seek and undergo vocational reha-
bilitation. 
(3) CONSULTATION.—In conducting the study 
under this subsection, the Secretary shall consult 
with appropriate public and private entities, agen-
cies, and veterans service organizations, and shall 
employ consultants. 
(4) DEADLINE
FOR
COMPLETION.—The Sec-
retary shall complete the study under this subsection 
by not later than 180 days after the date of the en-
actment of this Act. 
(5) REPORT TO CONGRESS.—Not later than 60 
days after the date that the study under this sub-
section is completed, the Secretary shall submit to 
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Congress a report on the study. The report shall in-
clude— 
(A) the results of the study on quality of 
life and the payment of compensation for serv-
ice-connected disabilities for which the Sec-
retary entered into a contract on January 28, 
2008; 
(B) the Secretary’s findings and conclu-
sions with respect to adjusting the schedule for 
rating disabilities adopted and applied by the 
Secretary under section 1155 of title 38, United 
States Code, to account for the loss of quality 
of life and loss of earnings that result from spe-
cific disabilities; 
(C) the Secretary’s findings and conclu-
sions with respect to— 
(i) the report of the Veterans’ Dis-
ability Benefits Commission; 
(ii) the report of the President’s Com-
mission on the Care for America’s Return-
ing Wounded Warriors; 
(iii) the report of the Institute of 
Medicine entitled ‘‘A 21st Century System 
for Evaluating Veterans for Disability 
Benefits’’; and 
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(iv) any other independent or advisory 
commission report on matters relating to 
such schedule that the Secretary deter-
mines is appropriate; 
(D) the Secretary’s recommendations with 
respect to the appropriate disabilities for inclu-
sion in the schedule; 
(E) the Secretary’s recommendations with 
respect to the amount of compensation payable 
to veterans for the loss of quality of life and the 
basis for such recommendations; 
(F) the Secretary’s recommendations with 
respect to the amount of compensation payable 
to veterans for average loss of earnings capacity 
and the appropriate standards for determining 
whether a disability has caused a veteran to 
incur a loss of earnings capacity; 
(G) the Secretary’s assessment of the ef-
fect of the treatment of mental disabilities 
under the schedule for rating disabilities, as in 
effect on the date of the enactment of this Act; 
and 
(H) the Secretary’s determination with re-
spect to whether the regulations prescribed pur-
suant to section 1154 of title 38, United States 
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Code, are consistent with providing, to the max-
imum extent possible, the benefit of the doubt 
to veterans covered by that section in the ab-
sence of official military records pertaining to 
the service-connection of a veteran’s disability, 
and in particular, of post-traumatic stress dis-
order, when a determination of service-connec-
tion would be consistent with the duties, condi-
tions, and hardships of service in the Armed 
Forces. 
(b) SUBMISSION OF PLAN.— 
(1) PLAN REQUIRED.—Not later than 120 days 
after the date on which the Secretary submits the 
report required under subsection (a)(5), the Sec-
retary shall submit to Congress a plan to readjust 
the schedule for rating disabilities adopted and ap-
plied by the Secretary under section 1155 of title 38, 
United States Code. In developing the plan required 
under this subsection, the Secretary shall consider 
the report submitted under subsection (a)(5) and 
shall provide for the readjustment of such schedule 
for rating disabilities to— 
(A) align the schedule with medical con-
cepts considered best practices as of the date of 
the enactment of this Act, including those pro-
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vided in the Current Procedural Terminology 
Manual, International Classification of Dis-
eases, the Diagnostic and Statistical Manual of 
Mental Disorders, and applicable American 
Medical Association Guides; 
(B) bridge the gap between the schedule, 
as in effect on the date of the enactment of this 
Act, and medical understandings, as of such 
date, of injuries and diseases and the affects of 
such injuries and diseases on the ability of a 
person suffering from them to function; 
(C) prioritize such readjustment with re-
spect to post-traumatic stress disorder, other 
mental disorders, neurological disorders, trau-
matic brain injury, orthopedic disabilities, and 
digestive disabilities; 
(D) ensure that the schedule is automated 
in accordance with the review and comprehen-
sive plan of the Secretary under section 110 of 
this Act; and 
(E) ensure that a transition plan is pro-
vided to ease the transition from the schedule 
for rating disabilities, as in effect on the date 
of the enactment of this Act, to the implemen-
tation of the schedule for rating disabilities, as 
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proposed to be readjusted by the plan under 
this subsection. 
(2) TIMELINE FOR READJUSTMENT.—The Sec-
retary shall include in the plan submitted under the 
subsection a proposed timeline for when the Sec-
retary intends to readjust the schedule. Such pro-
posed timeline may not exceed three years. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out subsections (a) and (b). 
(d) ADVISORY COMMITTEE
ON DISABILITY COM-
PENSATION.— 
(1) ESTABLISHMENT.—Subchapter III of chap-
ter 5 of title 38, United States Code, is amended by 
adding at the end the following new section: 
‘‘§ 546. Advisory Committee on Disability Compensa-
tion 
‘‘(a) ESTABLISHMENT.—(1) There is in the Depart-
ment the Advisory Committee on Disability Compensation 
(in this section referred to as the ‘Committee’). 
‘‘(2) The Committee shall consist of not more than 
18 members appointed by the Secretary from among indi-
viduals who— 
‘‘(A) have demonstrated significant civic or pro-
fessional achievement; and 
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‘‘(B) have experience with the provision of dis-
ability compensation by the Department or are lead-
ing medical or scientific experts in relevant fields. 
‘‘(3) The Secretary shall seek to ensure that members 
appointed to the Committee include individuals from a 
wide variety of geographic areas and ethnic backgrounds, 
individuals from veterans service organizations, individ-
uals with combat experience, and women. 
‘‘(4) The Secretary shall determine the terms of serv-
ice and pay and allowances of the members of the Com-
mittee, except that a term of service may not exceed two 
years. The Secretary may reappoint any member for addi-
tional terms of service. 
‘‘(b) RESPONSIBILITIES OF COMMITTEE.—(1) The 
Secretary, on a regular basis, shall consult with and seek 
the advice of the Committee with respect to the mainte-
nance and periodic readjustment of the schedule for rating 
disabilities under section 1155. 
‘‘(2) In providing advice to the Secretary under this 
subsection, the Committee shall— 
‘‘(A) assemble and review relevant information 
relating to the needs of veterans with disabilities; 
‘‘(B) provide information relating to the nature 
and character of disabilities arising from service in 
the Armed Forces; 
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‘‘(C) provide an on-going assessment of the ef-
fectiveness of the schedule for rating disabilities; and 
‘‘(D) provide on-going advice on the most ap-
propriate means of responding to the needs of vet-
erans relating to disability compensation in the fu-
ture. 
‘‘(c) ANNUAL REPORT.—(1) Not later than March 31 
of each year, the Committee shall submit to the Secretary 
a report on the programs and activities of the Department 
that relate to the payment of disability compensation. 
Each such report shall include— 
‘‘(A) an assessment of the needs of vet-
erans with respect to disability compensation; 
‘‘(B) a review of the programs and activi-
ties of the Department designed to meet such 
needs; and 
‘‘(C) such recommendations (including rec-
ommendations for administrative and legislative 
action) as the Committee considers appropriate. 
‘‘(2) Not later than 90 days after the date of the re-
ceipt of a report under paragraph (1), the Secretary shall 
transmit to the Committees on Veterans’ Affairs of the 
Senate and House of Representatives a copy of the report, 
together with any comments and recommendations con-
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cerning the report that the Secretary considers appro-
priate. 
‘‘(3) The Committee may also submit to the Sec-
retary such other reports and recommendations as the 
Committee considers appropriate. 
‘‘(4) The Secretary shall submit with each annual re-
port submitted to the Congress pursuant to section 529 
of this title a summary of all reports and recommendations 
of the Committee submitted to the Secretary since the pre-
vious annual report of the Secretary submitted pursuant 
to that section. 
‘‘(d) APPLICABILITY OF FEDERAL ADVISORY COM-
MITTEE ACT.—(1) Except as provided in paragraph (2), 
the provisions of the Federal Advisory Committee Act (5 
U.S.C. App.) shall apply to the activities of the Committee 
under this section. 
‘‘(2) Section 14 of such Act shall not apply to the 
Committee.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end of the items relating to sub-
chapter III the following new item: 
‘‘546. Advisory Committee on Disability Compensation.’’. 
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SEC. 3. STUDY ON EMPLOYEE WORK CREDIT SYSTEM OF 
VETERANS BENEFITS ADMINISTRATION. 
(a) STUDY REQUIRED.—The Secretary of Veterans 
Affairs shall conduct a study on the employee work credit 
system of the Veterans Benefits Administration of the De-
partment of Veterans Affairs, which is used to measure 
the work production of employees of the Veterans Benefits 
Administration. 
(b) CONTENTS OF STUDY.—In carrying out the study 
under subsection (a), the Secretary shall consider the ad-
visability of implementing— 
(1) performance standards and accountability 
measures to ensure that— 
(A) claims for benefits under the laws ad-
ministered by the Secretary are processed in an 
objective, accurate, consistent, and efficient 
manner; and 
(B) final decisions with respect to such 
claims are consistent and issued within the av-
erage amount of time required to process a 
claim, as identified by the Secretary in the most 
recent annual report submitted by the Secretary 
under section 529 of title 38, United States 
Code; 
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(A) be based on the findings of the study 
conducted by the Secretary under this section; 
(B) focus on evaluating the accuracy and 
quality of ratings decisions made by such em-
ployees; and 
(C) not resemble or be based on any con-
cept on which the system in effect as of the 
date of the enactment of this Act is based. 
(2) SUSPENSION OF AWARD OF WORK CRED-
ITS.—If the Secretary of Veterans Affairs does not 
implement the new system for evaluating work pro-
duction under paragraph (1), the Secretary may not 
award a work credit to any employee of the Veterans 
Benefits Administration until the Secretary has im-
plemented such system. 
SEC. 4. STUDY ON WORK MANAGEMENT SYSTEM. 
(a) IN GENERAL.—The Secretary of Veterans Affairs 
shall conduct a study on the work management system 
of the Veterans Benefits Administration of the Depart-
ment of Veterans Affairs, which is designed to improve 
accountability, quality, and accuracy, and reduce the time 
for processing claims for benefits under laws administered 
by the Secretary that are adjudicated by the Veterans 
Benefits Administration. 
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(b) CONTENTS OF STUDY.—In conducting the study 
required under subsection (a), the Secretary shall con-
sider— 
(1) accountability for claims adjudication out-
comes; 
(2) the quality of claims adjudicated; 
(3) a simplified process to adjudicate claims; 
(4) the maximum use of information technology 
applications; 
(5) rules-based applications and tools for proc-
essing and adjudicating claims efficiently and effec-
tively; and 
(6) methods of reducing the time required to 
obtain information from outside sources. 
(c) REPORT TO CONGRESS.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
shall submit to Congress a report on the study conducted 
under this section. 
SEC. 5. CERTIFICATION AND TRAINING OF EMPLOYEES OF 
VETERANS BENEFITS ADMINISTRATION RE-
SPONSIBLE FOR PROCESSING CLAIMS. 
(a) EMPLOYEE CERTIFICATION REQUIRED.— 
(1) IN GENERAL.—Subchapter II of chapter 77 
of title 38, United States Code, is amended by add-
ing at the end the following new section: 
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‘‘§ 7735. Employee certification 
‘‘(a) DEVELOPMENT OF CERTIFICATION EXAMINA-
TION.—The Secretary shall develop a certification exam-
ination for appropriate employees and managers of the 
Veterans Benefits Administration who are responsible for 
processing claims for benefits under the laws administered 
by the Secretary. The Secretary shall develop such exam-
ination in consultation with examination development ex-
perts and such employees, employee representatives, man-
agers, and public and private entities, including veterans 
service organizations and other service organizations, as 
the Secretary determines appropriate. 
‘‘(b) EMPLOYEE AND MANAGER REQUIREMENT.— 
The Secretary shall require appropriate employees and 
managers of the Veterans Benefits Administration who 
are responsible for processing claims for benefits under 
the laws administered by the Secretary to take a certifi-
cation examination. 
‘‘(c) LIMITATION.—The Secretary may not satisfy 
any requirement of this section through the use of any 
certification examination or program that exists as of the 
date of the enactment of the Veterans Disability Benefits 
Claims Modernization Act of 2008.’’. 
(2) DEADLINES
FOR
IMPLEMENTATION.—The 
Secretary of Veterans Affairs shall— 
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(A) develop the certification examination 
required to be developed under section 7735 of 
title 38, United States Code, as added by sub-
section (a), by not later than one year after the 
date of the enactment of this Act; and 
(B) implement procedures for admin-
istering the certification of employees under 
such section and begin administering the certifi-
cation examination required under such section 
by not later than 90 days after the date on 
which the development of such certification ex-
amination is complete. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is further 
amended by adding at the end of the items relating 
to subchapter II the following new item: 
‘‘7735. Employee certification.’’. 
(b) EVALUATION OF TRAINING.— 
(1) EVALUATION REQUIRED.—The Secretary of 
Veterans Affairs shall enter into a contract with a 
private entity with experience evaluating training 
processes, continuing education needs, and central-
ized training requirements, under which that entity 
shall— 
(A) conduct an evaluation of the items re-
quired to be included in the annual report of 
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the Secretary by section 7734 of title 38, 
United States Code, that were included in the 
last such report submitted before the date of 
the enactment of this Act, that relate to the 
training and performance assessment programs 
of the Department of Veterans Affairs for em-
ployees of the Veterans Benefits Administration 
who are responsible for matters relating to com-
pensation or pension benefits under the laws 
administered by the Secretary; and 
(B) submit, not later than 180 days after 
the date of the enactment of this Act, submit 
to the Secretary the results of such evaluation. 
(2) SUBMISSION OF RESULTS TO CONGRESS.— 
The Secretary shall include the results of the evalua-
tion required under paragraph (1) with the first an-
nual report required to be submitted to Congress 
under section 529 of title 38, United States Code, 
submitted after the date on which the Secretary re-
ceives such results. 
(3) REPORT.—Not later than 180 days after 
the date on which the Secretary submits the report 
referred to in paragraph (2), the Secretary shall 
submit to Congress a report on any actions the Sec-
retary has taken or plans to take in response to the 
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results of the evaluation required under paragraph 
(1). 
SEC. 6. ENHANCEMENT OF USE OF INFORMATION TECH-
NOLOGY AT VETERANS BENEFITS ADMINIS-
TRATION. 
(a) REVIEW.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Veterans 
Affairs shall conduct a study of— 
(1) the use of information technology at the 
Veterans Benefits Administration; and 
(2) the best practices and lessons learned with-
in the Department of Veterans Affairs through the 
use of the technology known as ‘‘VistA’’ and by 
other Government entities and private sector organi-
zations who employ information technology and 
automated decision support software in dealing with 
veterans and veterans benefits. 
(b) CONSULTATION.—In carrying out the study, the 
Secretary of Veterans Affairs shall consult with informa-
tion technology designers at the Veterans Health Adminis-
tration, ‘‘VistA’’ managers, the Secretary of Defense, ap-
propriate officials of other Government agencies, appro-
priate individuals in the private and public sectors, vet-
erans service organizations, and other relevant service or-
ganizations. 
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(c) REPORT TO CONGRESS.—Not later than January 
1, 2009, the Secretary shall submit to Congress a report 
on the study under this section. 
SEC. 7. TREATMENT OF CLAIMS UPON DEATH OF CLAIM-
ANT. 
(a) IN GENERAL.—Section 5121 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(d) SUBSTITUTION IN CASE OF DEATH OF CLAIM-
ANT.— 
‘‘(1) SUBSTITUTION.—If a veteran who is a 
claimant dies while a claim for any benefit under a 
law administered by the Secretary, or an appeal of 
a decision with respect to such a claim, is pending 
and awaiting adjudication, the person who would re-
ceive any accrued benefits due to the veteran under 
subsection (a)(2) shall be treated as the claimant for 
the purposes of processing the claim to completion, 
except that such person may only submit new evi-
dence in support of the claim during the one-year 
period beginning on the date of the death of the vet-
eran. 
‘‘(2) LIMITATION.—Only one person may be 
treated as the claimant under paragraph (1). 
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‘‘(3) DESIGNATION OF THIRD PARTY.—If the 
person who would be eligible to be treated as the 
claimant under paragraph (1) certifies to the Sec-
retary that the person does not want to be treated 
as the claimant for such purposes, such person may 
designate the person who would receive the benefits 
under subsection (a)(2) upon the death of the person 
who would otherwise be treated as the claimant 
under paragraph (1) to be treated as the claimant 
for the purposes of processing the claim to comple-
tion.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to the claim of any 
veteran who dies on or after the date of the enactment 
of this Act. 
Æ 
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