TITLE II—TRANSITION AND
OUTREACH PROVISIONS
SEC. 201. AUTHORITY TO ESTABLISH OVERSEAS VETERANS
ASSISTANCE OFFICES TO EXPAND TRANSI-
TION ASSISTANCE.
Section 7723(a) is amended by inserting after the first
sentence the following new sentence: ‘‘The Secretary may
maintain such offices on such military installations located
elsewhere as the Secretary, after consultation with the Sec-
retary of Defense, determines to be necessary to carry out
such purposes.’’.
SEC. 202. TIMING OF PRESEPARATION COUNSELING.
(a) IN GENERAL.—(1) The first sentence of section
1142(a)(1) of title 10, United States Code, is amended to
read as follows: ‘‘Within the time periods specified in para-
graph (3), the Secretary concerned shall (except as provided
in paragraph (4)) provide for individual preseparation
counseling of each member of the armed forces whose dis-
charge or release from active duty is anticipated as of a
specific date.’’.
(2) Such section is further amended by adding at the
end the following new paragraphs:
‘‘(3)(A) In the case of an anticipated retirement,
preseparation counseling shall commence as soon as possible
during the 24-month period preceding the anticipated re-
tirement date. In the case of a separation other than a re-
tirement, preseparation counseling shall commence as soon
as possible during the 12-month period preceding the an-
ticipated date. Except as provided in subparagraph (B), in
no event shall preseparation counseling commence later
than 90 days before the date of discharge or release.
‘‘(B) In the event that a retirement or other separation
is unanticipated until there are 90 or fewer days before the
anticipated retirement or separation date, preseparation
counseling shall begin as soon as possible within the re-
maining period of service.
‘‘(4)(A) Subject to subparagraph (B), the Secretary
concerned shall not provide preseparation counseling to a
member who is being discharged or released before the com-
pletion of that member’s first 180 days of active duty.
‘‘(B) Subparagraph (A) shall not apply in the case
of a member who is being retired or separated for dis-
ability.’’.
(b) CONFORMING AMENDMENT.—The second sentence
of section 1144(a)(1) of title 10, United States Code, is
amended by striking ‘‘during the 180-day period’’ and all
that follows and inserting ‘‘within the time periods pro-
vided under paragraph (3) of section 1142(a) of this title,
except that the Secretary concerned shall not provide
preseparation counseling to a member described in para-
graph (4)(A) of such section.’’.
SEC. 203. IMPROVEMENT IN EDUCATION AND TRAINING
OUTREACH 
SERVICES 
FOR 
SEPARATING
SERVICEMEMBERS AND VETERANS.
(a) PROVIDING OUTREACH THROUGH STATE APPROV-
ING AGENCIES.—Section 3672(d) is amended by inserting
‘‘and State approving agencies’’ before ‘‘shall actively pro-
mote the development of programs of training on the job’’.
(b) ADDITIONAL
DUTY.—Such section is further
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) In conjunction with outreach services furnished
by the Secretary for education and training benefits under
chapter 77 of this title, each State approving agency shall
conduct outreach programs and provide outreach services
to eligible persons and veterans about education and train-
ing benefits available under applicable Federal and State
law.’’.
SEC. 204. EXPANSION OF OUTREACH EFFORTS TO ELIGIBLE
DEPENDENTS.
(a) AVAILABILITY OF OUTREACH SERVICES FOR CHIL-
DREN, SPOUSES, SURVIVING SPOUSES, AND DEPENDENT
PARENTS.—Paragraph (2) of section 7721(b) is amended
to read as follows:
‘‘(2) the term ‘eligible dependent’ means a
spouse, surviving spouse, child, or dependent parent
of a person who served in the active military, naval,
or air service.’’.
(b) IMPROVED OUTREACH PROGRAM.—(1) Subchapter
II of chapter 77 is amended by adding at the end the fol-
lowing new section:
‘‘§ 7727. Outreach for eligible dependents
‘‘(a) In carrying out this subchapter, the Secretary
shall ensure that the needs of eligible dependents are fully
addressed.
‘‘(b) The Secretary shall ensure that the availability
of outreach services and assistance for eligible dependents
under this subchapter is made known through a variety of
means, including the Internet, announcements in veterans
publications, and announcements to the media.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
7726 the following new item:
‘‘7727. Outreach for eligible dependents.’’.
SEC. 205. IMPROVEMENT OF VETERANS OUTREACH PRO-
GRAMS.
Section 7722(c) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(2) by adding at the end the following:
‘‘(2) Whenever a veteran or dependent first applies for
any benefit under laws administered by the Secretary (in-
cluding a request for burial or related benefits or an appli-
cation for life insurance proceeds), the Secretary shall pro-
vide to the veteran or dependent information concerning
benefits and health care services under programs adminis-
tered by the Secretary.’’.
TITLE III—MEMORIAL AFFAIRS,
INSURANCE, AND OTHER PRO-
VISIONS
SEC. 301. INCREASE IN BURIAL BENEFITS.
(a) BURIAL AND FUNERAL EXPENSES.—(1) Section
2307 is amended by striking ‘‘$1,500’’ and inserting
‘‘$2,000 (as increased from time to time under section 5312
of this title)’’.
(2) Section 2302(a) is amended by striking ‘‘$300’’
and inserting ‘‘$500 (as increased from time to time under
section 5312 of this title)’’.
(3) Section 2303(a)(1)(A) is amended by striking
‘‘$300’’ and inserting ‘‘$500 (as increased from time to time
under section 5312 of this title)’’.
(b) PLOT ALLOWANCE.—Section 2303(b) is amended
by striking ‘‘$150’’ each place it appears and inserting
‘‘$300 (as increased from time to time under section 5312
of this title)’’.
(c) INDEXING PAYMENT AMOUNTS.—Section 5312(a)
is amended—
(1) by striking ‘‘and each rate of monthly allow-
ance’’ and inserting ‘‘each rate of monthly allow-
ance’’; and
(2) by inserting ‘‘and each rate of allowance
paid under sections 2302, 2303, and 2307 of this
title,’’ after ‘‘under section 1805 of this title,’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to deaths occurring on or after the date
of the enactment of this Act.
SEC. 302. 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)—
‘‘(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
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.
‘‘(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
thereafter be insured under this subchapter in the maximum
amount or any lesser amount elected as provided in such
subparagraph (B) upon written application by the member,
proof of good health of each person (other than a child) to
be so insured, and compliance with such other terms and
conditions as may be prescribed by the Secretary.’’.
(c) TERMINATION OF COVERAGE.—(1) Subsection (a)
of section 1968 is amended—
(A) in the matter preceding paragraph (1), by
inserting ‘‘and any insurance thereunder on any in-
surable dependent of such a member,’’ after ‘‘any in-
surance thereunder on any member of the uniformed
services,’’; and
(B) by adding at the end the following new
paragraph:
‘‘(5) With respect to an insurable dependent of
the member, insurance under this subchapter shall
cease—
‘‘(A) 120 days after the date of an election
made in writing by the member to terminate the
coverage; or
‘‘(B) on the earliest of—
‘‘(i) 120 days after the date of the
member’s death;
‘‘(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
(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’’.
(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
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
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.
(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).
SEC. 303. RETROACTIVE APPLICABILITY OF INCREASE IN
MAXIMUM 
SGLI 
BENEFIT 
FOR 
MEMBERS
DYING IN PERFORMANCE OF DUTY ON OR
AFTER OCTOBER 1, 2000.
(a) APPLICABILITY OF INCREASE IN BENEFIT.—Not-
withstanding subsection (c) of section 312 of the Veterans
Benefits and Health Care Improvement Act of 2000 (Public
Law 106–419; 114 Stat. 1854), the amendments made by
subsection (a) of that section shall take effect on October
1, 2000, with respect to any member of the Armed Forces
who died in the performance of duty (as determined by the
Secretary concerned) during the period beginning on Octo-
ber 1, 2000, and ending at the close of March 31, 2001,
and who on the date of death was insured under the
Servicemembers’ Group Life Insurance program under sub-
chapter III of chapter 19 of title 38, United States Code,
for the maximum coverage available under that program.
(b) DEFINITION.—For purposes of this section, the
term ‘‘Secretary concerned’’ has the meaning given that
term in section 101(25) of title 38, United States Code.
SEC. 304. INCREASE IN AMOUNT OF ASSISTANCE FOR AUTO-
MOBILE AND ADAPTIVE EQUIPMENT FOR
CERTAIN DISABLED VETERANS.
Section 3902(a) is amended by striking ‘‘$8,000’’ and
inserting ‘‘$9,000’’.
SEC. 305. INCREASE IN ASSISTANCE AMOUNT FOR SPE-
CIALLY ADAPTED HOUSING.
Section 2102 is amended—
(1) in the matter preceding paragraph (1) of
subsection (a), by striking ‘‘$43,000’’ and inserting
‘‘$48,000’’; and
(2) in subsection (b)(2), by striking ‘‘$8,250’’
and inserting ‘‘$9,250’’.
SEC. 306. REVISION OF RULES WITH RESPECT TO NET
WORTH LIMITATION FOR ELIGIBILITY FOR
PENSIONS FOR VETERANS WHO ARE PERMA-
NENTLY AND TOTALLY DISABLED FROM A
NON-SERVICE-CONNECTED DISABILITY.
(a) IN GENERAL.—Section 1522(a) is amended by
adding at the end the following new sentence: ‘‘In deter-
mining the corpus of the estates of the veteran and the vet-
eran’s spouse, if any, the value of the real property of the
veteran and the veteran’s spouse and children shall be ex-
cluded if such property is used for farming, ranching, or
similar agricultural purposes.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to payment of pensions for months
beginning on or after the date of the enactment of this Act.
SEC. 307. 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
(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 3512 is amended—
1992 (38 U.S.C. 7721 note) is amended by striking ‘‘, dur-
ing,’’.
Union Calendar No. 18
107TH CONGRESS
1ST SESSION
H. R. 801
[Report No. 107–27]
A BILL
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 depend-
ents, to increase burial benefits, to provide for
family coverage under Servicemembers’ Group
Life Insurance, and for other purposes.
MARCH 26, 2001
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed