In the Senate of the United States,
May 24, 2001.
Resolved, That the bill from the House of Representa-
tives (H.R. 801) entitled ‘‘An Act to amend title 38, United
States Code, to improve programs of educational assistance,
to expand programs of transition assistance and outreach to
departing servicemembers, veterans, and dependents, to in-
crease burial benefits, to provide for family coverage under
Servicemembers’ Group Life Insurance, and for other pur-
poses.’’, do pass with the following
AMENDMENTS:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Vet-
erans’ Survivor Benefits Improvements Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.
Sec. 3. Eligibility for benefits under CHAMPVA for veterans’ survivors who are
eligible for hospital insurance benefits under the medicare pro-
gram.
Sec. 4. Family coverage under Servicemembers’ Group Life Insurance.
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Sec. 5. Retroactive applicability of increase in maximum SGLI benefit for mem-
bers dying in performance of duty on or after October 1, 2000.
Sec. 6. Expansion of outreach efforts to eligible dependents.
Sec. 7. Technical amendments to the Montgomery GI Bill statute.
Sec. 8. Miscellaneous technical amendments.
SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or
other provision of title 38, United States Code.
SEC. 3. ELIGIBILITY FOR BENEFITS UNDER CHAMPVA FOR
VETERANS’ SURVIVORS WHO ARE ELIGIBLE
FOR HOSPITAL INSURANCE BENEFITS UNDER
THE MEDICARE PROGRAM.
Subsection (d) of section 1713 is amended to read as
follows:
‘‘(d)(1)(A) An individual otherwise eligible for medical
care under this section who is also entitled to hospital in-
surance benefits under part A of the medicare program is
eligible for medical care under this section only if the indi-
vidual is also enrolled in the supplementary medical insur-
ance program under part B of the medicare program.
‘‘(B) The limitation in subparagraph (A) does not
apply to an individual who—
‘‘(i) has attained 65 years of age as of the date
of the enactment of the Veterans’ Survivor Benefits
Improvements Act of 2001; and
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‘‘(ii) is not enrolled in the supplementary med-
ical insurance program under part B of the medicare
program as of that date.
‘‘(2) Subject to paragraph (3), if an individual de-
scribed in paragraph (1) receives medical care for which
payment may be made under both this section and the
medicare program, the amount payable for such medical
care under this section shall be the amount by which (A)
the costs for such medical care exceed (B) the sum of—
‘‘(i) the amount payable for such medical care
under the medicare program; and
‘‘(ii) the total amount paid or payable for such
medical care by third party payers other than the
medicare program.
‘‘(3) The amount payable under this subsection for
medical care may not exceed the total amount that would
be paid under subsection (b) if payment for such medical
care were made solely under subsection (b).
‘‘(4) In this paragraph:
‘‘(A) The term ‘medicare program’ means the
program of health insurance administered by the Sec-
retary of Health and Human Services under title
XVIII of the Social Security Act (42 U.S.C. 1395 et
seq.).
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‘‘(B) The term ‘third party’ has the meaning
given that term in section 1729(i)(3) of this title.’’.
SEC. 4. FAMILY COVERAGE UNDER SERVICEMEMBERS’
GROUP LIFE INSURANCE.
(a) INSURABLE DEPENDENTS.—(1) Section 1965 is
amended by adding at the end the following new paragraph:
‘‘(10) The term ‘insurable dependent’, with re-
spect to a member, means the following:
‘‘(A) The member’s spouse.
‘‘(B) The member’s child, as defined in the
first sentence of section 101(4)(A) of this title.’’.
(2) Section 101(4)(A) is amended in the matter pre-
ceding clause (i) by inserting ‘‘(other than with respect to
a child who is an insurable dependent under section
1965(10)(B) of such chapter)’’ after ‘‘except for purposes of
chapter 19 of this title’’.
(b) INSURANCE COVERAGE.—(1) Subsection (a) of sec-
tion 1967 is amended to read as follows:
‘‘(a)(1) Subject to an election under paragraph (2),
any policy of insurance purchased by the Secretary under
section 1966 of this title shall automatically insure the fol-
lowing persons against death:
‘‘(A) In the case of any member of a uniformed
service on active duty (other than active duty for
training)—
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‘‘(i) the member; and
‘‘(ii) each insurable dependent of the mem-
ber.
‘‘(B) Any member of a uniformed service on ac-
tive duty for training or inactive duty training
scheduled in advance by competent authority.
‘‘(C) In the case of any member of the Ready Re-
serve of a uniformed service who meets the qualifica-
tions set forth in section 1965(5)(B) of this title—
‘‘(i) the member; and
‘‘(ii) each insurable dependent of the mem-
ber.
‘‘(2)(A) A member may elect in writing not to be in-
sured under this subchapter.
‘‘(B) A member may elect in writing not to insure the
member’s spouse under this subchapter.
‘‘(3)(A) Subject to subparagraphs (B) and (C), the
amount for which a person is insured under this subchapter
is as follows:
‘‘(i) In the case of a member, $250,000.
‘‘(ii) In the case of a member’s spouse, $100,000.
‘‘(iii) In the case of a member’s child, $10,000.
‘‘(B) A member may elect in writing to be insured or
to insure the member’s spouse in an amount less than the
amount provided for under subparagraph (A). The member
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may not elect to insure the member’s child in an amount
less than $10,000. The amount of insurance so elected shall,
in the case of a member or spouse, be evenly divisible by
$10,000.
‘‘(C) In no case may the amount of insurance coverage
under this subsection of a member’s spouse exceed the
amount of insurance coverage of the member.
‘‘(4)(A) An insurable dependent of a member is not
insured under this chapter unless the member is insured
under this subchapter.
‘‘(B) An insurable dependent who is a child may not
be insured at any time by the insurance coverage under
this chapter of more than one member. If an insurable de-
pendent who is a child is otherwise eligible to be insured
by the coverage of more than one member under this chap-
ter, the child shall be insured by the coverage of the member
whose eligibility for insurance under this subchapter oc-
curred first, except that if that member does not have legal
custody of the child, the child shall be insured by the cov-
erage of the member who has legal custody of the child.
‘‘(5) The insurance shall be effective with respect to
a member and the insurable dependents of the member on
the latest of the following dates:
‘‘(A) The first day of active duty or active duty
for training.
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‘‘(B) The beginning of a period of inactive duty
training scheduled in advance by competent author-
ity.
‘‘(C) The first day a member of the Ready Re-
serve meets the qualifications set forth in section
1965(5)(B) of this title.
‘‘(D) The date certified by the Secretary to the
Secretary concerned as the date Servicemembers’
Group Life Insurance under this subchapter for the
class or group concerned takes effect.
‘‘(E) In the case of an insurable dependent who
is a spouse, the date of marriage of the spouse to the
member.
‘‘(F) In the case of an insurable dependent who
is a child, the date of birth of such child or, if the
child is not the natural child of the member, the date
on which the child acquires status as an insurable de-
pendent of the member.’’.
(2) Subsection (c) of such section is amended by strik-
ing the first sentence and inserting the following: ‘‘If a per-
son eligible for insurance under this subchapter is not so
insured, or is insured for less than the maximum amount
provided for the person under subparagraph (A) of sub-
section (a)(3), by reason of an election made by a member
under subparagraph (B) of that subsection, the person may
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‘‘(ii) 120 days after the date of termi-
nation of the insurance on the member’s life
under this subchapter; or
‘‘(iii) 120 days after the termination of
the dependent’s status as an insurable de-
pendent of the member.’’.
(2) Such subsection is further amended—
(A) in the matter preceding paragraph (1), by
striking ‘‘, and such insurance shall cease—’’ and in-
serting ‘‘and such insurance shall cease as follows:’’;
(B) by striking ‘‘with’’ after the paragraph des-
ignation in each of paragraphs (1), (2), (3), and (4)
and inserting ‘‘With’’;
(C) in paragraph (1)—
(i) in the matter preceding subparagraph
(A), by striking ‘‘thirty-one days—’’ and insert-
ing ‘‘31 days, insurance under this subchapter
shall cease—’’;
(ii) in subparagraph (A)—
(I) by striking ‘‘one hundred and twen-
ty days’’ after ‘‘(A)’’ and inserting ‘‘120
days’’; and
(II) by striking ‘‘prior to the expira-
tion of one hundred and twenty days’’ and
inserting ‘‘before the end of 120 days’’; and
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(iii) by striking the semicolon at the end of
subparagraph (B) and inserting a period;
(D) in paragraph (2)—
(i) by striking ‘‘thirty-one days’’ and insert-
ing ‘‘31 days,’’;
(ii) by striking ‘‘one hundred and twenty
days’’ both places it appears and inserting ‘‘120
days’’; and
(iii) by striking the semicolon at the end
and inserting a period;
(E) in paragraph (3)—
(i) by inserting a comma after ‘‘competent
authority’’;
(ii) by striking ‘‘one hundred and twenty
days’’ both places it appears and inserting ‘‘120
days’’; and
(iii) by striking ‘‘; and’’ at the end and in-
serting a period; and
(F) in paragraph (4), by inserting ‘‘insurance
under this subchapter shall cease’’ before ‘‘120 days
after ’’ the first place it appears.
(3) Subsection (b)(1)(A) of such section is amended by
inserting ‘‘(to insure against death of the member only)’’
after ‘‘converted to Veterans’ Group Life Insurance’’.
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(d) PREMIUMS.—Section 1969 is amended by adding
at the end the following new subsections:
‘‘(g)(1)(A) During any period in which a spouse of a
member is insured under this subchapter and the member
is on active duty, there shall be deducted each month from
the member’s basic or other pay until separation or release
from active duty an amount determined by the Secretary
as the premium allocable to the pay period for providing
that insurance coverage. No premium may be charged for
providing insurance coverage for a child.
‘‘(B) During any month in which a member is as-
signed to the Ready Reserve of a uniformed service under
conditions which meet the qualifications set forth in section
1965(5)(B) of this title and the spouse of the member is
insured under a policy of insurance purchased by the Sec-
retary under section 1966 of this title, there shall be contrib-
uted from the appropriation made for active duty pay of
the uniformed service concerned an amount determined by
the Secretary (which shall be the same for all such members)
as the share of the cost attributable to insuring the spouse
of such member under this policy, less any costs traceable
to the extra hazards of such duty in the uniformed services.
Any amounts so contributed on behalf of any individual
shall be collected by the Secretary concerned from such indi-
vidual (by deduction from pay or otherwise) and shall be
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credited to the appropriation from which such contribution
was made.
‘‘(2)(A) The Secretary shall determine the premium
amounts to be charged for life insurance coverage for
spouses of members under this subchapter.
‘‘(B) The premium amounts shall be determined on the
basis of sound actuarial principles and shall include an
amount necessary to cover the administrative costs to the
insurer or insurers providing such insurance.
‘‘(C) Each premium rate for the first policy year shall
be continued for subsequent policy years, except that the
rate may be adjusted for any such subsequent policy year
on the basis of the experience under the policy, as deter-
mined by the Secretary in advance of that policy year.
‘‘(h) Any overpayment of a premium for insurance
coverage for an insurable dependent of a member that is
terminated under section 1968(a)(5) of this title shall be
refunded to the member.’’.
(e) PAYMENTS
OF INSURANCE PROCEEDS.—Section
1970 is amended by adding at the end the following new
subsection:
‘‘(i) Any amount of insurance in force on an insurable
dependent of a member under this subchapter on the date
of the dependent’s death shall be paid, upon the establish-
ment of a valid claim therefor, to the member or, in the
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event of the member’s death before payment to the member
can be made, then to the person or persons entitled to receive
payment of the proceeds of insurance on the member’s life
under this subchapter.’’.
(f) CONVERSION OF SGLI TO PRIVATE LIFE INSUR-
ANCE.—Section 1968(b) is amended by adding at the end
the following new paragraph:
‘‘(3)(A) In the case of a policy purchased under this
subchapter for an insurable dependent who is a spouse,
upon election of the spouse, the policy may be converted to
an individual policy of insurance under the same condi-
tions as described in section 1977(e) of this title (with re-
spect to conversion of a Veterans’ Group Life Insurance pol-
icy to such an individual policy) upon written application
for conversion made to the participating company selected
by the spouse and payment of the required premiums. Con-
version of such policy to Veterans’ Group Life Insurance
is prohibited.
‘‘(B) In the case of a policy purchased under this sub-
chapter for an insurable dependent who is a child, such pol-
icy may not be converted under this subsection.’’.
(g) EFFECTIVE DATE
AND INITIAL IMPLEMENTA-
TION.—(1) The amendments made by this section shall take
effect on the first day of the first month that begins more
than 120 days after the date of the enactment of this Act.
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(2) Each Secretary concerned, acting in consultation
with the Secretary of Veterans Affairs, shall take such ac-
tion as is necessary to ensure that during the period between
the date of the enactment of this Act and the effective date
determined under paragraph (1) each eligible member—
(A) is furnished an explanation of the insurance
benefits available for dependents under the amend-
ments made by this section; and
(B) is afforded an opportunity before such effec-
tive date to make elections that are authorized under
those amendments to be made with respect to depend-
ents.
(3) For purposes of paragraph (2):
(A) The term ‘‘Secretary concerned’’ has the
meaning given that term in section 101 of title 38,
United States Code.
(B) The term ‘‘eligible member’’ means a member
of the uniformed services described in subparagraph
(A) or (C) of section 1967(a)(1) of title 38, United
States Code, as amended by subsection (b)(1).
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SEC. 7. TECHNICAL AMENDMENTS TO THE MONTGOMERY
GI BILL STATUTE.
(a) CLARIFICATION
OF ELIGIBILITY REQUIREMENT
FOR BENEFITS.—
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section
3011(a)(1)(A), as amended by section 103(a)(1)(A) of
the Veterans Benefits and Health Care Improvement
Act of 2000 (Public Law 106–419; 114 Stat. 1825),
is amended by striking ‘‘serves an obligated period of
active duty of’’ and inserting ‘‘(I) in the case of an
individual whose obligated period of active duty is
three years or more, serves at least three years of con-
tinuous active duty in the Armed Forces, or (II) in
the case of an individual whose obligated period of ac-
tive duty is less than three years, serves’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect as if enacted on No-
vember 1, 2000, immediately after the enactment of
the Veterans Benefits and Health Care Improvement
Act of 2000 (Public Law 106–419).
(b) ENTITLEMENT CHARGE FOR OFF-DUTY TRAINING
AND EDUCATION.—
(1) 
IN
GENERAL.—Section 
3014(b)(2) 
is
amended—
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(A) in paragraph (2), by inserting ‘‘, but
not more frequently than monthly’’ before the pe-
riod;
(B) in paragraph (3), by striking ‘‘$4’’ and
inserting ‘‘$20’’; and
(C) in paragraph (4)—
(i) by striking ‘‘Secretary. The’’ and
inserting ‘‘Secretary of the military depart-
ment concerned. That’’; and
(ii) by striking ‘‘by the Secretary’’.
(2) SELECTED
RESERVE
PROGRAM.—Section
3012(f), as added by section 105(a)(2) of such Act, is
amended—
(A) in paragraph (2), by inserting ‘‘, but
not more frequently than monthly’’ before the pe-
riod;
(B) in paragraph (3), by striking ‘‘$4’’ and
inserting ‘‘$20’’; and
(C) in paragraph (4)—
(i) by striking ‘‘Secretary. The’’ and
inserting ‘‘Secretary of the military depart-
ment concerned. That’’; and
(ii) by striking ‘‘by the Secretary’’.
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(3) INCREASED
ASSISTANCE
AMOUNT.—Section
3015(g), as added by section 105(b)(3) of such Act, is
amended—
(A) in the matter preceding paragraph (1),
by inserting ‘‘effective as of the first day of the
enrollment period following receipt of such con-
tributions from such individual by the Secretary
concerned,’’ after ‘‘by section 3011(e) or 3012(f)
of this title,’’; and
(B) in paragraph (1)—
(i) by striking ‘‘$1’’ and inserting
‘‘$5’’;
(ii) by striking ‘‘$4’’ and inserting
‘‘$20’’; and
(iii) by inserting ‘‘of this title’’ after
‘‘section 3011(e) or 3012(f)’’.
(4) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect as if included in
the enactment of section 105 of the Veterans Benefits
and Health Care Improvement Act of 2000 (Public
Law 106–419; 114 Stat. 1828).
(d) DEATH BENEFITS.—
(1) IN
GENERAL.—Paragraph (1) of section
3017(b) is amended to read as follows:
‘‘(1) the total of—
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‘‘(A) the amount reduced from the individ-
ual’s basic pay under section 3011(b), 3012(c),
3018(c), 3018A(b), 3018B(b), 3018C(b), or
3018C(e) of this title;
‘‘(B) the amount reduced from the individ-
ual’s retired pay under section 3018C(e) of this
title;
‘‘(C) the amount collected from the indi-
vidual by the Secretary under section 3018B(b),
3018C(b), or 3018C(e) of this title; and
‘‘(D) the amount of any contributions made
by the individual under section 3011(c) or
3012(f) of this title, less’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect as of May 1, 2001.
(e) CLARIFICATION OF CONTRIBUTIONS REQUIRED BY
VEAP PARTICIPANTS
WHO
ENROLL
IN
BASIC
EDU-
CATIONAL ASSISTANCE.—
(1) 
CLARIFICATION.—Section 
3018C(b), 
as
amended by section 104(b) of the Veterans Benefits
and Health Care Improvement Act of 2000 (Public
Law 106–419; 114 Stat. 1828), is amended by strik-
ing ‘‘or (e)’’.
(2) TREATMENT OF CERTAIN CONTRIBUTIONS.—
Any amount collected under section 3018C(b) of title
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38, United States Code (whether by reduction in basic
pay under paragraph (1) of that section, collection
under paragraph (2) of that section, or both), with re-
spect to an individual who enrolled in basic edu-
cational assistance under section 3018C(e) of that
title, during the period beginning on November 1,
2000, and ending on the date of the enactment of this
Act, shall be treated as an amount collected with re-
spect to the individual under section 3018C(e)(3)(A)
of that title (whether as a reduction in basic pay
under clause (i) of that section, a collection under
clause (ii) of that section, or both) for basic edu-
cational assistance under section 3018C of that title.
(f) CLARIFICATION OF TIME PERIOD FOR ELECTION
OF BEGINNING OF CHAPTER 35 ELIGIBILITY FOR DEPEND-
ENTS.—
(1) IN GENERAL.—(A) Section 3512(a)(3)(B), as
amended by section 112 of the Veterans Benefits and
Health Care Improvement Act of 2000 (Public Law
106–419; 114 Stat. 1831), is amended to read as fol-
lows:
‘‘(B) the eligible person elects that begin-
ning date by not later than the end of the 60-
day period beginning on the date on which the
Secretary provides written notice to that person
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of that person’s opportunity to make such elec-
tion, such notice including a statement of the
deadline for the election imposed under this sub-
paragraph; and’’.
(B) Section 3512(a)(3)(C), as so amended, is
amended by striking ‘‘between the dates described in’’
and inserting ‘‘the date determined pursuant to’’.
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall take effect as if enacted on No-
vember 1, 2000, immediately after the enactment of
the Veterans Benefits and Health Care Improvement
Act of 2000.
SEC. 8. MISCELLANEOUS TECHNICAL AMENDMENTS.
(a) TITLE 38, UNITED STATES CODE.—Title 38,
United States Code, is amended as follows:
(1) Effective as of November 1, 2000, section 107
is amended—
(A) in the second sentence of subsection (a),
by inserting ‘‘or (d)’’ after ‘‘subsection (c)’’;
(B) by redesignating the second subsection
(c) (added by section 332(a)(2) of the Veterans
Benefits and Health Care Improvement Act of
2000 (Public Law 106–419)) as subsection (d);
and
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(C) in subsection (d), as so redesignated, by
striking ‘‘In’’ in paragraph (1) and inserting
‘‘With respect to benefits under chapter 23 of this
title, in’’.
(2) Section 1710B(c)(2)(B) is amended by strik-
ing ‘‘on the date of the enactment of the Veterans Mil-
lennium Health Care and Benefits Act’’ and inserting
‘‘November 30, 1999’’.
(3) Section 2301(f) is amended—
(A) in the matter in paragraph (1) pre-
ceding subparagraph (A), by striking ‘‘(as’’ and
all that follows through ‘‘in section’’ and insert-
ing ‘‘(as described in section’’; and
(B) in paragraph (2), by striking ‘‘subpara-
graphs’’ and inserting ‘‘subparagraph’’.
(4) Section 3452 is amended—
(A) in subsection (a)(1)—
(i) by striking ‘‘or’’ at the end of sub-
paragraph (A); and
(ii) by striking ‘‘clause (B) of this
paragraph’’ in subparagraph (C) and in-
serting ‘‘subparagraph (B)’’;
(B) in subsection (a)(2)—