(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
TITLE 
I—MATTERS 
RELATING 
TO 
MODERNIZING 
THE 
DIS-
ABILITY COMPENSATION SYSTEM OF DEPARTMENT OF VET-
ERANS AFFAIRS 
Sec. 101. Clarification of meaning of ‘‘combat with the enemy’’ for purposes of 
service-connection of disabilities. 
Sec. 102. Study on readjustment of schedule for rating disabilities. 
Sec. 103. Study on employee work credit system of Veterans Benefits Adminis-
tration. 
Sec. 104. Study on work management system. 
Sec. 105. Certification and training of employees of Veterans Benefits Adminis-
tration responsible for processing claims. 
Sec. 106. Annual assessment of quality assurance program. 
Sec. 107. Expedited treatment of fully developed claims and requirement for 
checklist to be provided to individuals submitting incomplete 
claims. 
Sec. 108. Study and report on employing medical professionals to assist em-
ployees of Veterans Benefits Administration. 
Sec. 109. Assignment of partial disability ratings to qualifying veterans. 
Sec. 110. Review and enhancement of use of information technology at Vet-
erans Benefits Administration. 
Sec. 111. Treatment of claims upon death of claimant. 
TITLE II—MATTERS RELATING TO UNITED STATES COURT OF 
APPEALS FOR VETERANS CLAIMS 
Sec. 201. Annual reports on workload of United States Court of Appeals for 
Veterans Claims. 
Sec. 202. Modification of jurisdiction and finality of decisions of United States 
Court of Appeals for Veterans Claims. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) At the end of fiscal year 2007, there were 
nearly 24,000,000 veterans in America. 
(2) According to the latest Annual Report from 
the Veterans Benefits Administration, there were 
3,582,255 veterans and survivors receiving com-
pensation and pension benefits under laws adminis-
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tered by the Secretary of Veterans Affairs at the end 
of fiscal year 2006. 
(3) The number of veterans and survivors at 
the end of fiscal year 2006 included 2,725,824 vet-
erans receiving service-connected disability benefits, 
325,939 survivors receiving service-connected death 
benefits, 329,856 veterans receiving non-service-con-
nected disability benefits, and 200,636 survivors re-
ceiving non-service-connected death benefits. 
(4) During fiscal year 2006, almost 250,000 
beneficiaries began receiving benefits with 162,805 
of these being veterans whose compensation claims 
were granted. 
(5) Since October 7, 2001, the number of 
claims for new or increased benefits has risen sharp-
ly, exceeding 838,000 in 2007. 
(6) The Department of Veterans Affairs 
projects that the number of claims will surpass 
1,000,000 by the end of fiscal year 2008. 
(7) The number of disability compensation 
claims pending before the Department stands at 
nearly 650,000, as of the date of the enactment of 
this Act, about a quarter of which have been back-
logged for over six months. 
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(8) Processing times have increased from an av-
erage of 177 days in 2006 to 183 days in 2007. 
(9) The paper-based, labor-intensive process 
employed by the Department leaves many disabled 
veterans and survivors waiting months or years to 
receive the benefits they have earned. 
(10) The most prevalent disabilities among vet-
erans that are service-connected are auditory, with 
almost 840,000 veterans receiving compensation for 
such a disability, followed by musculoskeletal disabil-
ities and arthritis. 
(11) Post-traumatic stress disorder is the sixth 
most common disability, with more than 269,399 
service-connected veterans. 
(12) In 2006, the Veterans Health Administra-
tion treated 345,713 veterans with post-traumatic 
stress disorder, which was an increase of 27,099 
over 2005. 
(13) By January 2008, of the 1,600,000 vet-
erans who served in the Armed Forces after October 
7, 2001, the Veterans Health Administration had 
treated 59,838 for post-traumatic stress disorder. 
(14) Disabilities are evaluated in accordance 
with the Department of Veterans Affairs Schedule 
for Rating Disabilities (referred to in this section as 
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the ‘‘VASRD’’) under title 38, United States Code 
of Federal Regulations, part 4. 
(15) This schedule was originally created in 
1917 and was last comprehensively revised in 1945. 
(16) The VASRD contains many outdated and 
archaic criteria and lacks more commonly accepted 
medical practices and procedures. 
(17) Studies conducted by the Institute of Med-
icine found it to be an inadequate instrument for 
compensating disabilities for the average impair-
ments of earning capacity, especially in areas of 
mental health, unemployability, and for younger and 
severely injured veterans, and recommended it be re-
vised using more modern medical concepts. 
(18) The Department of Veterans Affairs must 
modernize the claims processing system of the Vet-
erans Benefits Administration to make it a first- 
class, veteran-centered system that uses 21st cen-
tury technologies and paradigms and reflects the 
dignity and sacrifices made by disabled veterans, 
their families, and survivors. 
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TITLE 
I—MATTERS 
RELATING 
TO MODERNIZING THE DIS-
ABILITY COMPENSATION SYS-
TEM 
OF 
DEPARTMENT 
OF 
VETERANS AFFAIRS 
SEC. 101. CLARIFICATION OF MEANING OF ‘‘COMBAT WITH 
THE ENEMY’’ FOR PURPOSES OF SERVICE- 
CONNECTION OF DISABILITIES. 
(a) CLARIFICATION.—Section 1154(b) of title 38, 
United States Code, is amended— 
(1) by striking ‘‘In the case’’ and inserting ‘‘(1) 
In the case’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) For the purposes of this subsection, the term 
‘combat with the enemy’ includes service on active duty— 
‘‘(A) in a theater of combat operations (as de-
termined by the Secretary in consultation with the 
Secretary of Defense) during a period of war; or 
‘‘(B) in combat against a hostile force during a 
period of hostilities.’’. 
(b) EFFECTIVE DATE.—Paragraph (2) of subsection 
(b) of section 1154 of title 38, United States Code, as 
added by subsection (a), shall apply with respect to a claim 
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for disability compensation under chapter 11 of such title 
pending on or after the date of the enactment of this Act. 
SEC. 102. STUDY ON READJUSTMENT OF SCHEDULE FOR 
RATING DISABILITIES. 
(a) STUDY ON ADJUSTMENT OF SCHEDULE.— 
(1) STUDY REQUIRED.—The Secretary of Vet-
erans Affairs shall conduct a study on adjusting the 
schedule 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 
standards, 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 OF STUDY.—In conducting the 
study under this subsection, the Secretary shall— 
(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; 
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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 
(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 
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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 
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-
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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-
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 
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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 
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. 
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(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 
(hereinafter 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 
‘‘(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, 
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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 shall, on a regular basis, 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 of this title. 
‘‘(2)(A) In providing advice to the Secretary under 
this subsection, the Committee shall— 
‘‘(i) assemble and review relevant information 
relating to the needs of veterans with disabilities; 
‘‘(ii) provide information relating to the nature 
and character of disabilities arising from service in 
the Armed Forces; 
‘‘(iii) provide an on-going assessment of the ef-
fectiveness of the schedule for rating disabilities; and 
‘‘(iv) 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. 
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‘‘(B) In carrying out its duties under subparagraph 
(A), the Committee shall take into special account the 
needs of veterans who have served in a theater of combat 
operations. 
‘‘(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 receipt 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 concerning the 
report that the Secretary considers appropriate. 
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‘‘(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.’’. 
SEC. 103. 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-
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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 7734 of title 38, United States 
Code; 
(2) guidelines and procedures for the prompt 
processing of such claims that are ready to rate 
upon submission; 
(3) guidelines and procedures for the processing 
of such claims submitted by severely injured and 
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very severely injured veterans, as determined by the 
Secretary; and 
(4) requirements for assessments of claims 
processing at each regional office for the purpose of 
producing lessons learned and best practices. 
(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 and the progress of the Secretary in 
implementing the new system for evaluating employees of 
the Veterans Benefits Administration required under sub-
section (d). 
(d) EVALUATION OF VETERANS BENEFITS ADMINIS-
TRATION EMPLOYEES.— 
(1) NEW
SYSTEM
REQUIRED.—By not later 
than 180 days after the date on which the Secretary 
of Veterans Affairs submits to Congress the report 
required under subsection (d), the Secretary shall es-
tablish a new system for evaluating the work produc-
tion of employees of the Veterans Benefits Adminis-
tration. Such system shall— 
(A) be based on the findings of the study 
conducted by the Secretary under this section; 
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(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 as required under paragraph (1), the Sec-
retary may not award a work credit to any employee 
of the Veterans Benefits Administration until the 
Secretary has implemented such system. 
SEC. 104. 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. 
(b) CONTENTS OF STUDY.—In conducting the study 
required under subsection (a), the Secretary shall con-
sider— 
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