H. R. 4986—463 
such to warrant a finding that the disability existed 
before the member’s entrance on active duty);’’. 
(b) SEPARATION OF REGULARS AND MEMBERS ON ACTIVE DUTY 
FOR MORE THAN 30 DAYS.—Section 1203(b)(4)(B) of such title is 
amended by striking ‘‘and the member has at least eight years 
of service computed under section 1208 of this title’’ and inserting 
‘‘, the member has six months or more of active military service, 
and the disability was not noted at the time of the member’s 
entrance on active duty (unless evidence or medical judgment is 
such to warrant a finding that the disability existed before the 
member’s entrance on active duty)’’. 
SEC. 1642. REQUIREMENTS AND LIMITATIONS ON DEPARTMENT OF 
DEFENSE 
DETERMINATIONS 
OF 
DISABILITY 
WITH 
RESPECT TO MEMBERS OF THE ARMED FORCES. 
(a) IN GENERAL.—Chapter 61 of title 10, United States Code, 
is amended by inserting after section 1216 the following new section: 
‘‘§ 1216a. Determinations of disability: requirements and 
limitations on determinations 
‘‘(a) UTILIZATION OF VA SCHEDULE FOR RATING DISABILITIES 
IN DETERMINATIONS OF DISABILITY.—(1) In making a determination 
of disability of a member of the armed forces for purposes of 
this chapter, the Secretary concerned— 
‘‘(A) shall, to the extent feasible, utilize the schedule for 
rating disabilities in use by the Department of Veterans Affairs, 
including any applicable interpretation of the schedule by the 
United States Court of Appeals for Veterans Claims; and 
‘‘(B) except as provided in paragraph (2), may not deviate 
from the schedule or any such interpretation of the schedule. 
‘‘(2) In making a determination described in paragraph (1), 
the Secretary concerned may utilize in lieu of the schedule described 
in that paragraph such criteria as the Secretary of Defense and 
the Secretary of Veterans Affairs may jointly prescribe for purposes 
of this subsection if the utilization of such criteria will result 
in a determination of a greater percentage of disability than would 
be otherwise determined through the utilization of the schedule. 
‘‘(b) CONSIDERATION OF ALL MEDICAL CONDITIONS.—In making 
a determination of the rating of disability of a member of the 
armed forces for purposes of this chapter, the Secretary concerned 
shall take into account all medical conditions, whether individually 
or collectively, that render the member unfit to perform the duties 
of the member’s office, grade, rank, or rating.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 61 of such title is amended by inserting after 
the item relating to section 1216 the following new item: 
‘‘1216a. Determinations of disability: requirements and limitations on determina-
tions.’’. 
SEC. 1643. REVIEW OF SEPARATION OF MEMBERS OF THE ARMED 
FORCES SEPARATED FROM SERVICE WITH A DISABILITY 
RATING OF 20 PERCENT DISABLED OR LESS. 
(a) BOARD REQUIRED.— 
(1) IN GENERAL.—Chapter 79 of title 10, United States 
Code, is amended by inserting after section 1554 the following 
new section:
H. R. 4986—464 
‘‘§ 1554a. Review of separation with disability rating of 20 
percent disabled or less 
‘‘(a) IN GENERAL.—(1) The Secretary of Defense shall establish 
within the Office of the Secretary of Defense a board of review 
to review the disability determinations of covered individuals by 
Physical Evaluation Boards. The board shall be known as the 
‘Physical Disability Board of Review’. 
‘‘(2) The Physical Disability Board of Review shall consist of 
not less than three members appointed by the Secretary. 
‘‘(b) COVERED INDIVIDUALS.—For purposes of this section, cov-
ered individuals are members and former members of the armed 
forces who, during the period beginning on September 11, 2001, 
and ending on December 31, 2009— 
‘‘(1) are separated from the armed forces due to unfitness 
for duty due to a medical condition with a disability rating 
of 20 percent disabled or less; and 
‘‘(2) are found to be not eligible for retirement. 
‘‘(c) REVIEW.—(1) Upon the request of a covered individual, 
or a surviving spouse, next of kin, or legal representative of a 
covered individual, the Physical Disability Board of Review shall 
review the findings and decisions of the Physical Evaluation Board 
with respect to such covered individual. Subject to paragraph (3), 
upon its own motion, the Physical Disability Board of Review may 
review the findings and decisions of the Physical Evaluation Board 
with respect to a covered individual. 
‘‘(2) The review by the Physical Disability Board of Review 
under paragraph (1) shall be based on the records of the armed 
force concerned and such other evidence as may be presented to 
the Physical Disability Board of Review. A witness may present 
evidence to the Board by affidavit or by any other means considered 
acceptable by the Secretary of Defense. 
‘‘(3) If the Physical Disability Board of Review proposes to 
review, upon its own motion, the findings and decisions of the 
Physical Evaluation Board with respect to a covered individual, 
the Physical Disability Board of Review shall notify the covered 
individual, or a surviving spouse, next of kin, or legal representative 
of the covered individual, of the proposed review and obtain the 
consent of the covered individual or a surviving spouse, next of 
kin, or legal representative of the covered individual before pro-
ceeding with the review. 
‘‘(4) With respect to any review by the Physical Disability 
Board of Review of the findings and decisions of the Physical 
Evaluation Board with respect to a covered individual, whether 
initiated at the request of the covered individual or a surviving 
spouse, next of kin, or legal representative of the covered individual 
or initiated by the Physical Disability Board of Review, the Physical 
Disability Board of Review shall notify the covered individual or 
a surviving spouse, next of kin, or legal representative of the covered 
individual that, as a result of the request or consent, the covered 
individual or a surviving spouse, next of kin, or legal representative 
of the covered individual may not seek relief from the Board for 
Correction of Military Records operated by the Secretary concerned. 
‘‘(d) AUTHORIZED RECOMMENDATIONS.—The Physical Disability 
Board of Review may, as a result of its findings under a review 
under subsection (c), recommend to the Secretary concerned the 
following (as applicable) with respect to a covered individual:
H. R. 4986—465 
‘‘(1) No recharacterization of the separation of such indi-
vidual or modification of the disability rating previously 
assigned such individual. 
‘‘(2) The recharacterization of the separation of such indi-
vidual to retirement for disability. 
‘‘(3) The modification of the disability rating previously 
assigned such individual by the Physical Evaluation Board 
concerned, which modified disability rating may not be a reduc-
tion of the disability rating previously assigned such individual 
by that Physical Evaluation Board. 
‘‘(4) The issuance of a new disability rating for such indi-
vidual. 
‘‘(e) CORRECTION OF MILITARY RECORDS.—(1) The Secretary con-
cerned may correct the military records of a covered individual 
in accordance with a recommendation made by the Physical Dis-
ability Board of Review under subsection (d). Any such correction 
may be made effective as of the effective date of the action taken 
on the report of the Physical Evaluation Board to which such 
recommendation relates. 
‘‘(2) In the case of a member previously separated pursuant 
to the findings and decision of a Physical Evaluation Board together 
with a lump-sum or other payment of back pay and allowances 
at separation, the amount of pay or other monetary benefits to 
which such member would be entitled based on the member’s mili-
tary record as corrected shall be reduced to take into account 
receipt of such lump-sum or other payment in such manner as 
the Secretary of Defense considers appropriate. 
‘‘(3) If the Physical Disability Board of Review makes a rec-
ommendation not to correct the military records of a covered indi-
vidual, the action taken on the report of the Physical Evaluation 
Board to which such recommendation relates shall be treated as 
final as of the date of such action. 
‘‘(f) REGULATIONS.—(1) This section shall be carried out in 
accordance with regulations prescribed by the Secretary of Defense. 
‘‘(2) The regulations under paragraph (1) shall specify reason-
able deadlines for the performance of reviews required by this 
section. 
‘‘(3) The regulations under paragraph (1) shall specify the effect 
of a determination or pending determination of a Physical Evalua-
tion Board on considerations by boards for correction of military 
records under section 1552 of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 79 of such title is amended by inserting 
after the item relating to section 1554 the following new item: 
‘‘1554a. Review of separation with disability rating of 20 percent disabled or less.’’. 
(b) IMPLEMENTATION.—The Secretary of Defense shall establish 
the board of review required by section 1554a of title 10, United 
States Code (as added by subsection (a)), and prescribe the regula-
tions required by such section, not later than 90 days after the 
date of the enactment of this Act. 
SEC. 1644. AUTHORIZATION OF PILOT PROGRAMS TO IMPROVE THE 
DISABILITY EVALUATION SYSTEM FOR MEMBERS OF THE 
ARMED FORCES. 
(a) PILOT PROGRAMS.—
H. R. 4986—466 
(1) PROGRAMS
AUTHORIZED.—For the purposes set forth 
in subsection (c), the Secretary of Defense may establish and 
conduct pilot programs with respect to the system of the Depart-
ment of Defense for the evaluation of the disabilities of members 
of the Armed Forces who are being separated or retired from 
the Armed Forces for disability under chapter 61 of title 10, 
United States Code (in this section referred to as the ‘‘disability 
evaluation system’’). 
(2) TYPES OF PILOT PROGRAMS.—In carrying out this section, 
the Secretary of Defense may conduct one or more of the 
pilot programs described in paragraphs (1) through (3) of sub-
section (b) or such other pilot programs as the Secretary of 
Defense considers appropriate. 
(3) CONSULTATION.—In establishing and conducting any 
pilot program under this section, the Secretary of Defense shall 
consult with the Secretary of Veterans Affairs. 
(b) SCOPE OF PILOT PROGRAMS.— 
(1) DISABILITY
DETERMINATIONS
BY
DOD
UTILIZING
VA 
ASSIGNED DISABILITY RATING.—Under one of the pilot programs 
authorized by subsection (a), for purposes of making a deter-
mination of disability of a member of the Armed Forces under 
section 1201(b) of title 10, United States Code, for the retire-
ment, separation, or placement of the member on the temporary 
disability retired list under chapter 61 of such title, upon a 
determination by the Secretary of the military department con-
cerned that the member is unfit to perform the duties of the 
member’s office, grade, rank, or rating because of a physical 
disability as described in section 1201(a) of such title— 
(A) the Secretary of Veterans Affairs may— 
(i) conduct an evaluation of the member for phys-
ical disability; and 
(ii) assign the member a rating of disability in 
accordance with the schedule for rating disabilities 
utilized by the Secretary of Veterans Affairs based 
on all medical conditions (whether individually or 
collectively) that render the member unfit for duty; 
and 
(B) the Secretary of the military department concerned 
may make the determination of disability regarding the 
member utilizing the rating of disability assigned under 
subparagraph (A)(ii). 
(2) DISABILITY
DETERMINATIONS
UTILIZING
JOINT
DOD/VA 
ASSIGNED DISABILITY RATING.—Under one of the pilot programs 
authorized by subsection (a), in making a determination of 
disability of a member of the Armed Forces under section 
1201(b) of title 10, United States Code, for the retirement, 
separation, or placement of the member on the temporary dis-
ability retired list under chapter 61 of such title, the Secretary 
of the military department concerned may, upon determining 
that the member is unfit to perform the duties of the member’s 
office, grade, rank, or rating because of a physical disability 
as described in section 1201(a) of such title— 
(A) provide for the joint evaluation of the member 
for disability by the Secretary of the military department 
concerned and the Secretary of Veterans Affairs, including 
the assignment of a rating of disability for the member
H. R. 4986—467 
in accordance with the schedule for rating disabilities uti-
lized by the Secretary of Veterans Affairs based on all 
medical conditions (whether individually or collectively) 
that render the member unfit for duty; and 
(B) make the determination of disability regarding the 
member utilizing the rating of disability assigned under 
subparagraph (A). 
(3) ELECTRONIC CLEARING HOUSE.—Under one of the pilot 
programs authorized by subsection (a), the Secretary of Defense 
may establish and operate a single Internet website for the 
disability evaluation system of the Department of Defense that 
enables participating members of the Armed Forces to fully 
utilize such system through the Internet, with such Internet 
website to include the following: 
(A) The availability of any forms required for the utili-
zation of the disability evaluation system by members of 
the Armed Forces under the system. 
(B) Secure mechanisms for the submission of such 
forms by members of the Armed Forces under the system, 
and for the tracking of the acceptance and review of any 
forms so submitted. 
(C) Secure mechanisms for advising members of the 
Armed Forces under the system of any additional informa-
tion, forms, or other items that are required for the accept-
ance and review of any forms so submitted. 
(D) The continuous availability of assistance to mem-
bers of the Armed Forces under the system (including 
assistance through the caseworkers assigned to such mem-
bers of the Armed Forces) in submitting and tracking such 
forms, including assistance in obtaining information, forms, 
or other items described by subparagraph (C). 
(E) Secure mechanisms to request and receive per-
sonnel files or other personnel records of members of the 
Armed Forces under the system that are required for 
submission 
under 
the 
disability 
evaluation 
system, 
including the capability to track requests for such files 
or records and to determine the status of such requests 
and of responses to such requests. 
(4) OTHER PILOT PROGRAMS.—The pilot programs author-
ized by subsection (a) may also provide for the development, 
evaluation, and identification of such practices and procedures 
under the disability evaluation system as the Secretary con-
siders appropriate for purposes set forth in subsection (c). 
(c) PURPOSES.—A pilot program established under subsection 
(a) may have one or more of the following purposes: 
(1) To provide for the development, evaluation, and identi-
fication of revised and improved practices and procedures under 
the disability evaluation system in order to— 
(A) reduce the processing time under the disability 
evaluation system of members of the Armed Forces who 
are likely to be retired or separated for disability, and 
who have not requested continuation on active duty, 
including, in particular, members who are severely 
wounded; 
(B) identify and implement or seek the modification 
of statutory or administrative policies and requirements 
applicable to the disability evaluation system that—
H. R. 4986—468 
(i) are unnecessary or contrary to applicable best 
practices of civilian employers and civilian healthcare 
systems; or 
(ii) otherwise result in hardship, arbitrary, or 
inconsistent outcomes for members of the Armed 
Forces, or unwarranted inefficiencies and delays; 
(C) eliminate material variations in policies, interpreta-
tions, and overall performance standards among the mili-
tary departments under the disability evaluation system; 
and 
(D) determine whether it enhances the capability of 
the Department of Veterans Affairs to receive and deter-
mine claims from members of the Armed Forces for com-
pensation, pension, hospitalization, or other veterans bene-
fits. 
(2) In conjunction with the findings and recommendations 
of applicable Presidential and Department of Defense study 
groups, to provide for the eventual development of revised 
and improved practices and procedures for the disability evalua-
tion system in order to achieve the objectives set forth in 
paragraph (1). 
(d) UTILIZATION OF RESULTS IN UPDATES OF COMPREHENSIVE 
POLICY ON CARE, MANAGEMENT, AND TRANSITION OF RECOVERING 
SERVICE MEMBERS.—The Secretary of Defense and the Secretary 
of Veterans Affairs, acting jointly, may incorporate responses to 
any findings and recommendations arising under the pilot programs 
conducted under subsection (a) in updating the comprehensive 
policy on the care and management of covered service members 
under section 1611(a)(4). 
(e) CONSTRUCTION WITH OTHER AUTHORITIES.— 
(1) IN GENERAL.—Subject to paragraph (2), in carrying out 
a pilot program under subsection (a)— 
(A) the rules and regulations of the Department of 
Defense and the Department of Veterans Affairs relating 
to methods of determining fitness or unfitness for duty 
and disability ratings for members of the Armed Forces 
shall apply to the pilot program only to the extent provided 
in the report on the pilot program under subsection (g)(1); 
and 
(B) the Secretary of Defense and the Secretary of Vet-
erans Affairs may waive any provision of title 10, 37, 
or 38, United States Code, relating to methods of deter-
mining fitness or unfitness for duty and disability ratings 
for members of the Armed Forces if the Secretaries deter-
mine in writing that the application of such provision would 
be inconsistent with the purpose of the pilot program. 
(2) LIMITATION.—Nothing in paragraph (1) shall be con-
strued to authorize the waiver of any provision of section 1216a 
of title 10, United States Code, as added by section 1642 of 
this Act. 
(f) DURATION.—Each pilot program conducted under subsection 
(a) shall be completed not later than one year after the date of 
the commencement of such pilot program under that subsection. 
(g) REPORTS.— 
(1) INITIAL REPORT.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the appropriate committees of Congress a report
H. R. 4986—469 
on each pilot program that has been commenced as of that 
date under subsection (a). The report shall include— 
(A) a description of the scope and objectives of the 
pilot program; 
(B) a description of the methodology to be used under 
the pilot program to ensure rapid identification under such 
pilot program of revised or improved practices under the 
disability evaluation system in order to achieve the objec-
tives set forth in subsection (c)(1); and 
(C) a statement of any provision described in subsection 
(e)(1)(B) that will not apply to the pilot program by reason 
of a waiver under that subsection. 
(2) INTERIM REPORT.—Not later than 180 days after the 
date of the submittal of the report required by paragraph 
(1) with respect to a pilot program, the Secretary shall submit 
to the appropriate committees of Congress a report describing 
the current status of the pilot program. 
(3) FINAL REPORT.—Not later than 90 days after the comple-
tion of all of the pilot programs conducted under subsection 
(a), the Secretary shall submit to the appropriate committees 
of Congress a report setting forth a final evaluation and assess-
ment of the pilot programs. The report shall include such 
recommendations for legislative or administrative action as the 
Secretary considers appropriate in light of such pilot programs. 
SEC. 1645. REPORTS ON ARMY ACTION PLAN IN RESPONSE TO DEFI-
CIENCIES IN THE ARMY PHYSICAL DISABILITY EVALUA-
TION SYSTEM. 
(a) REPORTS REQUIRED.—Not later than June 1, 2008, and 
June 1, 2009, the Secretary of Defense shall submit to the congres-
sional defense committees a report on the implementation of correc-
tive measures by the Department of Defense with respect to the 
Physical Disability Evaluation System (PDES) in response to the 
following: 
(1) The report of the Inspector General of the Army on 
that system of March 6, 2007. 
(2) The report of the Independent Review Group on 
Rehabilitation Care and Administrative Processes at Walter 
Reed Army Medical Center and National Naval Medical Center. 
(3) The report of the Department of Veterans Affairs Task 
Force on Returning Global War on Terror Heroes. 
(b) ELEMENTS OF REPORT.—Each report under subsection (a) 
shall include current information on the following: 
(1) The total number of cases, and the number of cases 
involving combat disabled service members, pending resolution 
before the Medical and Physical Disability Evaluation Boards 
of the Army, including information on the number of members 
of the Army who have been in a medical hold or holdover 
status for more than each of 100, 200, and 300 days. 
(2) The status of the implementation of modifications to 
disability evaluation processes of the Department of Defense 
in response to the following: 
(A) The report of the Inspector General on such proc-
esses dated March 6, 2007. 
(B) The report of the Independent Review Group on 
Rehabilitation Care and Administrative Processes at
H. R. 4986—470 
Walter Reed Army Medical Center and National Naval 
Medical Center. 
(C) The report of the Department of Veterans Affairs 
Task Force on Returning Global War on Terror Heroes. 
(c) POSTING
ON INTERNET.—Not later than 24 hours after 
submitting a report under subsection (a), the Secretary shall post 
such report on the Internet website of the Department of Defense 
that is available to the public. 
SEC. 1646. ENHANCEMENT OF DISABILITY SEVERANCE PAY FOR MEM-
BERS OF THE ARMED FORCES. 
(a) IN GENERAL.—Section 1212 of title 10, United States Code, 
is amended— 
(1) in subsection (a)(1), by striking ‘‘his years of service, 
but not more than 12, computed under section 1208 of this 
title’’ in the matter preceding subparagraph (A) and inserting 
‘‘the member’s years of service computed under section 1208 
of this title (subject to the minimum and maximum years 
of service provided for in subsection (c))’’; 
(2) by redesignating subsection (c) as subsection (d); and 
(3) by inserting after subsection (b) the following new sub-
section (c): 
‘‘(c)(1) The minimum years of service of a member for purposes 
of subsection (a)(1) shall be as follows: 
‘‘(A) Six years in the case of a member separated from 
the armed forces for a disability incurred in line of duty in 
a combat zone (as designated by the Secretary of Defense 
for purposes of this subsection) or incurred during the perform-
ance of duty in combat-related operations as designated by 
the Secretary of Defense. 
‘‘(B) Three years in the case of any other member. 
‘‘(2) The maximum years of service of a member for purposes 
of subsection (a)(1) shall be 19 years.’’. 
(b) NO DEDUCTION FROM COMPENSATION OF SEVERANCE PAY 
FOR DISABILITIES INCURRED IN COMBAT ZONES.—Subsection (d) of 
such section, as redesignated by subsection (a)(2) of this section, 
is further amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; 
(2) by striking the second sentence; and 
(3) by adding at the end the following new paragraphs: 
‘‘(2) No deduction may be made under paragraph (1) in the 
case of disability severance pay received by a member for a disability 
incurred in line of duty in a combat zone or incurred during perform-
ance of duty in combat-related operations as designated by the 
Secretary of Defense. 
‘‘(3) No deduction may be made under paragraph (1) from 
any death compensation to which a member’s dependents become 
entitled after the member’s death.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act, and 
shall apply with respect to members of the Armed Forces separated 
from the Armed Forces under chapter 61 of title 10, United States 
Code, on or after that date.
H. R. 4986—471 
SEC. 1647. ASSESSMENTS OF CONTINUING UTILITY AND FUTURE ROLE 
OF TEMPORARY DISABILITY RETIRED LIST. 
(a) REPORT REQUIRED.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report containing— 
(1) a statistical history since January 1, 2000, of the num-
bers of members of the Armed Forces who are returned to 
duty or separated following a tenure on the temporary disability 
retired list and, in the case of members who were separated, 
how many of the members were granted disability separation 
or retirement and what were their disability ratings; 
(2) the results of the assessments required by subsection 
(b); and 
(3) such recommendations for the modification or improve-
ment of the temporary disability retired list as the Secretary 
considers appropriate in response to the assessments. 
(b) REQUIRED ASSESSMENTS.—The assessments required to be 
conducted as part of the report under subsection (a) are the fol-
lowing: 
(1) An assessment of the continuing utility of the temporary 
disability retired list in satisfying the purposes for which the 
temporary disability retired list was established. 
(2) An assessment of the need to require that the condition 
of a member be permanent and stable before the member 
is separated with less than a 30 percent disability rating prior 
to exceeding the maximum tenure allowed on the temporary 
disability retired list. 
(3) An assessment of the future role of the temporary 
disability retired list in the Disability Evaluation System of 
the Department of Defense and the changes in policy and 
law required to fulfill the future role of the temporary disability 
retire list. 
SEC. 1648. STANDARDS FOR MILITARY MEDICAL TREATMENT FACILI-
TIES, SPECIALTY MEDICAL CARE FACILITIES, AND MILI-
TARY QUARTERS HOUSING PATIENTS AND ANNUAL 
REPORT ON SUCH FACILITIES. 
(a) ESTABLISHMENT OF STANDARDS.—The Secretary of Defense 
shall establish for the military facilities of the Department of 
Defense and the military departments referred to in subsection 
(b) standards with respect to the matters set forth in subsection 
(c). To the maximum extent practicable, the standards shall— 
(1) be uniform and consistent for all such facilities; and 
(2) be uniform and consistent throughout the Department 
of Defense and the military departments. 
(b) COVERED MILITARY FACILITIES.—The military facilities cov-
ered by this section are the following: 
(1) Military medical treatment facilities. 
(2) Specialty medical care facilities. 
(3) Military quarters or leased housing for patients. 
(c) SCOPE
OF STANDARDS.—The standards required by sub-
section (a) shall include the following: 
(1) Generally accepted standards for the accreditation of 
medical facilities, or for facilities used to quarter individuals 
that may require medical supervision, as applicable, in the 
United States.