SEC. 206. DEPARTMENT OF VETERANS AFFAIRS SUPPORT
OF TRANSITION ASSISTANCE.
(a) OUTREACH SERVICES.—Section 7722(d) of title
38 is amended by inserting at the end the following new
sentence: ‘‘The Secretary shall provide such aid and assist-
ance to members of the Armed Forces as part of their
transition assistance programs under section 1144 of title
10.’’.
(b) OVERSEAS VETERANS ASSISTANCE OFFICES.—
Section 7723(a) is amended by striking out in the second
sentence ‘‘In establishing and maintaining such’’ and in-
serting in lieu thereof ‘‘The Secretary shall also maintain
such offices on such Armed Forces installations located
elsewhere as the Secretary, after consultation with the
Secretary of Defense, determines to be necessary to carry
out such purposes. In establishing and maintaining veter-
ans assistance’’.
(c) OUTSTATIONING
OF COUNSELING
AND OUT-
REACH PERSONNEL.—Section 7724 of title 38 is amended
by inserting ‘‘and military installations’’ after ‘‘including
educational institutions’’.
SEC. 207. PRIORITIES FOR EMPLOYMENT SERVICES.
(a) PRIORITY FOR FEDERAL EMPLOYMENT SERV-
ICES.—Chapter 41 of title 38 is amended by inserting
after section 4108 the following new section:
‘‘§ 4108A. Priority for Employment Services and As-
sistance
‘‘Notwithstanding any other provision of law, veter-
ans who are eligible for employment services or assistance
under any employment or training program funded in
whole or in part by the United States who are also dis-
abled veterans, veterans with employment barriers, or vet-
erans separated from active duty less than four years shall
be entitled to first priority to any such employment serv-
ices or assistance for which they are otherwise eligible.’’.
(b) EMPHASIS UNDER FEDERAL CONTRACTS.—Sec-
tion 4212 of title 38 is amended—
(1) in subsection (a), by striking out ‘‘special
disabled veterans and veterans of the Vietnam era’’
and inserting in lieu thereof ‘‘disabled veterans, vet-
erans who have employment barriers (as defined in
regulations that the Secretary shall prescribe), and
veterans who have been separated from active duty
less than four years’’;
(2) in subsection (b), by striking out ‘‘special
disabled veteran or veteran of the Vietnam era’’ and
inserting in lieu thereof ‘‘veteran described in sub-
section (a)’’; and
(3) in subsection (c), by striking out ‘‘of
Labor’’ and by striking out ‘‘4107(c)’’ and inserting
in lieu thereof ‘‘4110(c)’’.
(c) CONFORMING AND CLERICAL AMENDMENTS.—
(1) Section 4211 is amended—
(A) by amending paragraph (1) to read as fol-
lows:
‘‘(1) The term ‘veterans with employment barriers’
shall be defined in regulations that the Secretary shall pre-
scribe.’’; and
(B) by striking out paragraph (2) and redesig-
nating paragraphs (3), (4), and (5) as paragraphs
(2), (3), and (4), respectively.
(2) The table of sections at the beginning of chapter
41 is amended by inserting after the item relating to sec-
tion 4108 the following:
‘‘4108A. Priority for employment services and assistance.’’.
SEC. 208. MARKETING VETERANS TO EMPLOYERS.
(a) ESTABLISHMENT OF THE VETERANS’ EMPLOY-
MENT NETWORK.—Chapter 42 of title 38 is amended by
adding at the end the following new section:
‘‘§ 4215. Veterans’ Employment Network
‘‘(a) There is established within the Executive
Branch an entity to be known as the Veterans’ Employ-
ment Network.
‘‘(b) The purposes of the Veterans’ Employment Net-
work (hereinafter referred to as the ‘Network’) are to—
‘‘(1) raise the awareness of employers of the ad-
vantages of hiring servicemembers who are separat-
ing from active duty and recently separated veter-
ans;
‘‘(2) 
facilitate 
the 
employment 
of 
such
servicemembers and veterans through national elec-
tronic labor exchanges; and
‘‘(3) foster, and facilitate the coordination of,
federal, state and local governmental programs
aimed at marketing the employment of such
servicemembers and veterans.
‘‘(c)(1) The Network shall be governed by a board
of directors consisting of at least twelve but not more than
eighteen persons appointed by the President for terms of
two years. In selecting members, the President shall be
guided by the goal of having on the board high-ranking
individuals who represent constituencies that are integral
to ensuring the successful employment of increasing num-
bers of servicemembers and veterans. In order to achieve
that goal, the President should ensure that the board in-
cludes representatives from the military services, the joint
chiefs of staff, major national corporations, national busi-
ness associations, national unions, state public labor ex-
change administrators, and national veterans service orga-
nizations and military associations.
‘‘(2) The President shall designate a chairperson and
vice-chairperson of the board who shall serve in their re-
spective capacities for terms of two years.
‘‘(3) The term of a member of the board who is an
officer or employee of the United States shall be deemed
to expire, unless the President otherwise directs, when
that member ceases to occupy the position that was the
basis of the member’s appointment to the board.
‘‘(4) Upon the occurrence of a vacancy on the board,
an individual appointed to fill the vacancy shall serve for
a term of two years.
‘‘(5) Members of the board may be reappointed for
a maximum of two terms beyond their initial term.
‘‘(6) Members of the board shall be allowed reason-
able and necessary travel expenses, including per diem in
lieu of subsistence, at rates authorized for persons serving
intermittently in the Government service in accordance
with the provisions of subchapter I of chapter 57 of title
5 while away from their homes or regular places of busi-
ness in the performance of the responsibilities of the
board.
‘‘(c)(1) The President shall appoint an executive di-
rector of the Network.
‘‘(2) The executive director shall have the authority
to provide for the support and staffing of the Network,
including the authority to employ such professional and
clerical staff as are necessary for the effective operations
of the Network.
‘‘(3) The Network shall have the authority to enter
into contracts to obtain services for the design, production,
and distribution of marketing materials.
‘‘(d) The Department of Labor shall provide adminis-
trative support services to the Network on a reimbursable
basis.
‘‘(e) There is authorized to be appropriated for the
purposes of this section, $10 million for fiscal year 2000
and such sums as are necessary for each fiscal year there-
after.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 42 or title 38 is amended by
inserting below the item relating to section 4214 the fol-
lowing:
‘‘4215. Veterans’ Employment Network.’’.
SEC. 209. VETERANS AND SERVICEMEMBERS ELECTRONIC
WEBSITE.
(a) ESTABLISHMENT OF ELECTRONIC WEBSITE.—
(1) Section 1144 of title 10 is amended—
(A) by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively; and
(B) by inserting after subsection (c), the follow-
ing new subsection (d):
‘‘(d) VETERANS AND SERVICEMEMBERS INTERNET
SITE.—(1)(A) The Secretary of Labor shall design, estab-
lish, and maintain on the internet an electronic site, to
be known as the Veterans and Servicemembers Internet
Site. The Secretary shall carry out the provisions of this
subsection in conjunction with, and with the assistance of,
the Secretaries of Defense, Transportation, and Veterans
Affairs.
‘‘(B) The purpose of the site shall be to provide a
convenient and efficient mechanism designed specifically
for matching veterans and separating servicemembers with
prospective employers.
‘‘(C) In establishing and operating the site, the Sec-
retary of Labor shall (i) make use of the electronic plat-
form of the Department of Labor Internet Personnel Re-
sources site, known as ‘America’s Career Kit’; (ii) take
into account the special circumstances of separating
servicemembers stationed overseas; (iii) incorporate and
update data generated and maintained by the Department
of Defense under sections 1143(c) and 1143a(b), (c), and
(d); and (iv) carry out the responsibilities of the Secretar-
ies of Defense and Transportation under those sections
as in effect on the day before the enactment of the
Servicemember and Veterans Transitions Services Im-
provement Act of 1999.
‘‘(2)(A) The Secretary of Labor shall publicize the
site established under this section to employers, associa-
tions of employers, veterans, veteran service organizations,
and military associations in order to encourage the use
of the site as a means of matching veterans and prospec-
tive employers.
‘‘(B) The Secretary shall provide and coordinate
training in the use of the site for employment services pro-
viders and persons serving on active duty.’’.
(2) The Secretary of Labor shall establish the site
required under the amendment made by paragraph (1)(B)
no later than 180 days after the date of the enactment
of this Act.
(b) CONFORMING AMENDMENTS.—(1) Section 1143
of title 10 is amended by striking out subsection (c) and
redesignating subsection (d) as subsection (c).
(2) Section 1143a of title 10 is amended by striking
out subsections (b) through (f) and redesignating sub-
sections (g) and (h) as subsections (b) and (c), respec-
tively.
(3) Section 1148 of title 10 is repealed.
SEC. 210. ELIMINATION OF RETIRED PAY REDUCTION FOR
FEDERALLY EMPLOYED REGULAR OFFICERS.
Section 5532(b) of title 5 is amended—
(1) by striking out ‘‘(b) A’’ and inserting in lieu
thereof ‘‘(b)(1) Except as provided in paragraph (2),
a’’; and
(2) by inserting at the end the following new
paragraph:
‘‘(2) Paragraph (1) shall not apply to an officer who
first becomes eligible to begin receiving retired or retainer
pay after December 31, 1999.’’.
SEC. 211. ELIMINATION OF 180-DAY BAR TO DEFENSE DE-
PARTMENT EMPLOYMENT.
Section 3326 of title 5 is repealed.
SEC. 212. RELIEF FROM MAXIMUM AGE LIMITS ON HIRING
OF FEDERAL FIREFIGHTERS AND LAW EN-
FORCEMENT OFFICERS.
Section 3307 of title 5 is amended by adding at the
end the following new subsection:
‘‘(f) In the computation of the age of a veteran (as
defined in section 101(2) of title 38) under subsection (d)
and (e) of this section, the veteran’s date of birth shall
be deemed to have occurred later than was actually the
case by an amount of time equal to the period that the
veteran served on active duty (as defined in section
101(21) of title 38).’’.
SEC. 213. LEAVE ACCRUAL FOR FEDERAL EMPLOYEES WHO
ARE VIETNAM-ERA VETERANS.
Section 6303(a)(3)(B) of title 5 is amended by insert-
ing after ‘‘war’’ the following ‘‘(including the Vietnam era,
as defined in section 101(29) of title 38)’’.
SEC. 214. EMPLOYMENT OF VETERANS BY CONTRACTORS
AND GRANTEES OF THE DEPARTMENTS OF
DEFENSE, LABOR, AND VETERANS AFFAIRS.
(a) SOLICITATIONS.—Any solicitation issued by the
Department of Defense, Labor, or Veterans Affairs for the
procurement, by contract or grant, of real or personal
property or nonpersonal services (including construction)
shall require each offeror—
(1) to include, for purposes of the evaluation of
past performance, a description of the offeror’s pro-
gram for hiring and promoting qualified eligible vet-
erans; and
(2) to include as part of any required sub-
contracting plan an affirmative commitment to hire
eligible veterans as a specific percentage of the
workforce.
(b) SUBCONTRACTING PLANS.—(1) An offeror re-
sponding to a solicitation covered by subsection (a) will
earn additional evaluation credit based on the likelihood
of meeting the subcontracting goal set forth in the plan
referred to in subsection (a)(2).
(2) Proposals that are found not to include an accept-
able subcontracting plan will be rejected.
TITLE III—HEALTH CARE
SEC. 301. IMPROVED TRANSITION HEALTH CARE FOR RE-
CENTLY SEPARATED SERVICEMEMBERS.
(a) IMPROVEMENTS IN COVERAGE AND FEES.—Sec-
tion 1078a of title 10 is amended—
(1) in subsection (a), by striking out ‘‘for
former’’ and all that follows and inserting in lieu
thereof ‘‘for dependents of active-duty members of
the armed forces.’’;
(2) in subsection (f)(1)—
(A) by striking out ‘‘the sum of’’; and
(B) by amending clauses (A) and (B) to
read as follows:
‘‘(A) for the first 120 days of coverage, an
amount equal to 10 percent (for coverage of an
individual), or 20 percent (for coverage of self
and one or more dependents), of the average
total cost to a covered person and the Depart-
ment of Defense for health-care benefits pro-
vided for beneficiaries eligible for continued cov-
erage under subsection (b)(1) and for medical
care under section 1079(a) of this title; and
‘‘(B) for coverage beyond the first 120
days, an amount equal to that average total
cost plus 2 percent.’’; and
(3) by adding at the end the following new sub-
section:
‘‘(h) SECONDARY COVERAGE.—Coverage under this
section shall be secondary to any other entitlement or eligi-
bility that the covered individual may have under a private
health-care plan or private insurance for the care other-
wise covered under this section.’’.
(b) CONVERSION TO IMPROVED POLICIES.—(1) On
or after the effective date of the amendments made by this
section, a person covered by a continued health-care policy
under section 1078a of title 10, United States Code, may
cancel that policy and enroll in a plan under that section
as amended by this section.
(2) The Secretary of Defense shall take action to pro-
vide timely notification to all persons who are eligible for
improved benefits under the amendments made by this
section.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect 6 months after the date of
the enactment of this Act.
SEC. 302. PROCUREMENT OF MEDICAL ITEMS.
(a) UNIFIED PROCUREMENT.—(1) The Secretaries of
Defense and Veterans Affairs shall—
(A) jointly establish policies for the unified pro-
curement of pharmaceuticals, medical and surgical
supplies, and medical equipment for the Depart-
ments of Veterans Affairs and Defense; and
(B) enter into a memorandum of understanding
for (i) implementing those policies, (ii) establishing
in either department an office for such unified pro-
curement, and (iii) providing for the continuing sup-
port, staffing, and administration of that office.
(2) Funding for the making of procurements by the
office and for the personnel and administrative expenses
of the office shall be derived, as provided in the agreement,
from (A) the revolving supply fund referred to in section
8121(a) of title 38, United States Code, and (B) funds
available to the Department of Defense for the procure-
ment of the types of items described in paragraph (1) and
the costs of making such procurements.
(b) The Secretaries of Defense and Veterans Affairs
shall complete the actions required by this section no later
than one year after the date of the enactment of this Act.
SEC. 303. JOINT FORMULARY.
(a) REQUIREMENT FOR JOINT FORMULARY.—The
Secretaries of Defense and Veterans Affairs shall develop
and maintain a clinically-based formulary for use by both
of their respective departments.
(b) PROCESS FOR SELECTING ITEMS.—The decisions
as to which medications to include in the formulary shall
be made after recommendations are made by a committee
of physicians, pharmacists, and other appropriate health-
care professionals selected by the Under Secretary for
Health of the Department of Veterans Affairs and the As-
sistant Secretary for Health Affairs of the Department of
Defense. Decisions regarding the inclusion of items in the
formulary shall not be subject to review in any court.
(c) EXCEPTION FROM REQUIREMENT FOR COMPETI-
TION.—The Secretaries of Defense and Veterans Affairs
may, at their sole discretion, procure items listed on the
formulary without seeking competition.
(d) DEFINITION.—For the purposes of this section,
the term ‘‘formulary’’ means a list of prescription medica-
tions that is periodically updated and reflects the clinical
judgment of health-care providers and experts in the diag-
nosis and treatment of disease as to which medications
are necessary and appropriate to have available in a
health-care system.
(e) DEADLINE.—The Secretaries shall establish the
formulary required by this section no later than one year
after the date of the enactment of this Act.
SEC. 304. UNIFORM PRODUCT NUMBERS FOR MEDICAL AND
SURGICAL SUPPLIES.
(a) REQUIREMENT FOR UNIVERSAL PRODUCT NUM-
BERS.—Beginning one year after the date of the enact-
ment of this Act, no medical or surgical product may be
procured for the use of the Department of Defense or Vet-
erans Affairs in either department’s health-care system
unless the product bears a universal product number or
an exception for the procurement has been made pursuant
to the regulations prescribed under subsection (b).
(b) REGULATIONS.—As soon as possible after the en-
actment of this Act, the Secretaries of Defense and Veter-
ans Affairs shall jointly prescribe regulations for the im-
plementation of this section. The regulations may allow
for the procurement of a medical or surgical product not
bearing a universal product number only where an excep-
tion is required by considerations of health and safety.
(c) DEFINITION.—For the purposes of this section,
the term ‘‘universal product number’’ means a number
that—
(1) is affixed by the manufacturer to each indi-
vidual item;
(2) uniquely identifies that item at each pack-
aging level, including packaging for individual use;
and
(3) is based on commercially acceptable identi-
fication standards established by the Uniform Code
Council—International Article Numbering system
and by the Health Industry Business Communica-
tion Council.
SEC. 305. COMPATIBLE COMPUTER SYSTEMS.
(a) HEALTH
INFORMATION
MANAGEMENT
SYS-
TEMS.—(1) The Secretaries of Defense and Veterans Af-
fairs shall jointly—
(A) offer a single solicitation for the replace-
ment of the existing legacy medical information
management systems (known as the ‘‘Composition
Health Care System’’ in the Department of Defense
and ‘‘VistA’’ in the Department of Veterans Affairs)
with integrated and interoperable systems able to
meet the needs of the health-care systems of both
departments; and
(B) develop policies to ensure that—
(i) all procurements of items that enhance
or replace part or all of the health information
management system of either the Department
of Defense or the Department of Veterans Af-
fairs are jointly planned and carried out and
make use of commercially available technology;
and
(ii) the departments jointly develop and
implement a common set of technical and data
standards that will make possible the direct, ef-
ficient, and reliable exchange of data between
the health information management systems of
the departments.
(2) For the purposes of this subsection, the term
‘‘health information management system’’ means an auto-
mated information technology system, including both
hardware and software, that stores data and produces in-
formation for use in, or relevant to, health-care services
and patient records, health-care quality assurance, health-
care costing, pricing, and billing systems, and health-care
management decisions.
(b) COST-ACCOUNTING SYSTEMS.—The Secretaries
of Defense and Veterans Affairs shall—
(1) take immediate action to ensure that data
from their departments’ health-care cost accounting
systems are comparable and compatible; and
(2) ensure that future cost-accounting data of
the two departments are always comparable and
compatible.
SEC. 306. MEDICAL RESEARCH.
(a) PUBLIC AWARENESS.—The Secretaries of De-
fense and Veterans Affairs shall undertake a program of
public education designed to ensure public awareness of
the benefits of the health-care research that their depart-
ments conduct. In carrying out the program, the Secretar-
ies may use paid advertising.
(b) FINANCIAL RETURN.—The Secretaries of De-
fense and Veterans Affairs shall establish policies designed
to ensure that their departments receive a financial return
on the department’s health-care research programs. These
policies shall include, but not be limited to, appropriate
use of the authorities to share medical resources, enter
into cooperative research and development agreements
under the Federal Technology Transfer Act, and the au-
thority to obtain and benefit from patents and copyrights.
SEC. 307. PILOT PROGRAM FOR FURNISHING VETERANS
FEE-BASIS 
CARE 
UNDER 
TRICARE 
CON-
TRACTS.
(a) REQUIREMENT FOR PILOT PROGRAM.—The Sec-
retaries of Defense and Veterans Affairs shall enter into
an agreement for the conduct of a pilot program under
which hospital care and medical services authorized to be
furnished by contract under section 1703 of title 38,
United States Code, is furnished by contractors under con-
tracts entered into under section 1097 of title 10, United
States Code. The Department of Veterans Affairs shall re-
imburse the Department of Defense for care furnished
under the pilot program at rates provided for in the agree-
ment.
(b) SCOPE.—The pilot program shall be conducted
during fiscal years 2000 and 2001 and shall be of such
scope and duration as will provide a basis for determining
whether the method of furnishing care under the program
can improve veterans’ access to care and reduce the costs
of care to the Department of Veterans Affairs without di-
minishing quality of care.
(c) REPORT.—Not later than December 31, 2000, the
Secretaries of Defense and Veterans Affairs shall submit
to the Committees on Veterans’ Affairs of the Senate and
the House of Representatives, the Committee on Armed
Services of the Senate, and the Committee on National
Security of the House of Representatives a report on the
experience under the pilot program. The Secretaries shall
include in the report their findings and any recommenda-
tions they may have for legislation based on the experience
under the pilot program.
SEC. 308. REVIEWS OF GRADUATE MEDICAL EDUCATION
PROGRAMS.
(a) REVIEW OF GRADUATE MEDICAL EDUCATION
PROGRAMS; REPORT.—(1) The Secretary of Defense, the
Secretary of Health and Human Services, and the Sec-
retary of Veterans Affairs shall jointly conduct a review
of the various forms of federal support provided to teach-
ing hospitals and medical schools, including the following:
(A) Payments under section 1886(h) of the So-
cial Security Act (42 U.S.C. 1395ww(h)) (direct
graduate medical education payments).
(B) Adjustments to Medicare payments under
section 1886(d)(5)(B) of that Act (42 U.S.C.
1395ww(d)(5)(B)) (indirect medical education ad-
justments).
(C) The graduate medical education programs
of the Departments of Defense and Veterans Affairs.
(2) Not later than August 31, 2000, the Secretaries
shall submit to the appropriate Committees of the Con-
gress a report on that review, including—
(A) the Secretaries’ views on whether, based on
the review, there are opportunities for greater co-
ordination and efficiency in the provision of federal
support of teaching hospitals and medical schools;
(B) any plans that the Secretaries have for
achieving the benefits of such opportunities; and
(C) any recommendations that the Secretaries
have for legislation.
(b) REVIEW
OF DOD/VA COLLABORATION; RE-
PORT.—(1) The Secretaries of Defense and Veterans Af-
fairs shall jointly conduct a review of the extent and na-
ture of the collaboration between the graduate medical
education programs of their departments and take any ac-
tions necessary to achieve the benefits of opportunities
that they find for greater collaboration.
(2) Not later than August 31, 2000, the Secretaries
shall submit to the Committees on Veterans’ Affairs of
the Senate and the House of Representatives, the Commit-
tee on Armed Services of the Senate, and the Committee
on National Security of the House of Representatives, a
report on that review, including—
(A) the Secretaries views on whether, based on
the review, there are greater opportunities for col-
laboration between the departments’ programs;
(B) the Secretaries plans for achieving the ben-
efits of those opportunities; and
(C) any recommendations that the Secretaries
have for legislation.
SEC. 309. SERVICES FOR HOMELESS VETERANS.
(a) VA’S GRANT AND PER DIEM PROGRAM.—The
Homeless Veterans Comprehensive Service Programs Act
of 1992 (Public Law 102–590) is amended—
(1) in section 3(a), by striking out ‘‘to furnish’’
and inserting in lieu thereof ‘‘and expanding existing
programs for furnishing’’;
(2) in subsection (b) of section 4, by adding at
the end the following new sentence: ‘‘The value of
in-kind goods and services provided by the grant re-
cipient shall nevertheless be included in the measure-
ment of that cost even where they entail no cost to
the grant recipient.’’; and
(3) by amending the first sentence in section 12
to read as follows: ‘‘There is authorized to be appro-
priated to carry out sections 3 and 4 of this Act $50
million for fiscal year 2000.’’.
(b) FUNDING FOR COMMUNITY-BASED RESIDENTIAL
TREATMENT.—The Secretary of Veterans Affairs shall di-
rect that a significant portion of the savings achieved by
the Veterans Health Administration through the closure
of acute care beds is redirected to the furnishing of com-
munity-based residential treatment of homeless veterans.
(c) UTILIZATION OF ENHANCED-USE LEASES.—The
Secretary of Veterans Affairs is urged to utilize the au-
thority under subchapter V of chapter 81 of title 38,
United States Code, to enter into enhanced-use leases in
order to provide support for community-based residential
care for homeless veterans.
(d) 
HOMELESS
VETERANS
REINTEGRATION
PROJECT.—The Stewart B. McKinney Homeless Assist-
ance Act is amended—
(1) 
in 
section 
738(e)(1) 
(42 
U.S.C.
11448(e)(1)), by adding at the end the following
new subparagraphs:
‘‘(H) $10,000,000 for fiscal year 2000.
‘‘(I) $10,000,000 for fiscal year 2001.’’;
and
(2) in section 741 (42 U.S.C. 11450), by strik-
ing out ‘‘December 31, 1999’’ and inserting in lieu
thereof ‘‘December 31, 2001’’.
TITLE IV—ECONOMIC EQUITY
PART A—HOME LOAN GUARANTY PROGRAM
SEC. 401. LIMITATION ON BASIC ENTITLEMENT.
(a) PROSPECTIVE LIMITATION TO ONE-TIME USE.—
Section 3703(a)(1) of title 38 is amended by striking out
subparagraph (B) and inserting in lieu thereof:
‘‘(B) The maximum amount of guaranty entitlement
available to a veteran for purposes specified in section
3710 shall be $36,000 or, in the case of a loan described
in subparagraph (A)(i)(IV) of this paragraph, $50,750.
‘‘(C)(i) With respect to a veteran who first entered
active duty on or before the date of the enactment of the
Servicemembers and Veterans Transition Services Im-
provement Act of 1999, or, in the case of a veteran de-
scribed in section 3701(b)(5)(A), first entered the Selected
Reserve on or before that date, the amount of guaranty
entitlement specified in subparagraph (B) shall be reduced
by the amount of entitlement previously used by the vet-
eran under this chapter and not restored as a result of
the exclusion in section 3702(b).
‘‘(ii) Except as provided in clause (iii), a veteran who
first entered active duty after the date specified in clause
(i) and a veteran described in section 3701(b)(5)(A) who
first entered the Selected Reserve after that date, shall
be entitled to have only one loan guaranteed, insured, or
made under this chapter.
‘‘(iii) Nothing in clause (ii) shall preclude a veteran
who has obtained a loan guaranteed, insured, or made
under this chapter from refinancing that loan with a loan
guaranteed under section 3710(a)(8).’’.
(b) CONFORMING AMENDMENT.—Section 3702(b) of
title 38 is amended by striking out in the matter preceding
paragraph (1) ‘‘to a veteran under this chapter’’ and in-
serting in lieu thereof ‘‘under this chapter to a veteran
described in section 3703(a)(1)(C)(i)’’.
SEC. 402. LOAN GUARANTY ELIGIBILITY FOR RESERVISTS.
(a) PERMANENT PROGRAM.—Section 3702(a)(2)(E)
of title 38 is amended by striking out ‘‘For the period be-
ginning on October 28, 1992, and ending on October 7,
1999, each’’ and inserting in lieu thereof, ‘‘Each’’.
(b) 
CERTIFICATES
OF
ELIGIBILITY.—Section
3701(b)(5) is amended by inserting after subparagraph
(B) the following new subparagraph:
‘‘(C)(i) The Secretary of Defense, in consulta-
tion with the Secretary, shall develop a uniform cer-
tificate for use by all reserve components to certify
that a member or former member of the Selected
Reserve has fulfilled the service requirements de-
scribed in subparagraph (A).
‘‘(ii) The Secretary of Defense shall implement,
not later than one year after the date of the enact-
ment of the Servicemembers and Veterans Transi-
tion Assistance Improvement Act of 1999, a system
designed to ensure that the certificate is issued to
each eligible person who serves in the Selected Re-
serve on or after the system is implemented. The
certificate shall be issued as soon as possible after
the eligible person has fulfilled the service require-
ments described in subparagraph (A).
‘‘(iii) The Secretary of Defense shall, upon re-
quest, issue the certificate to any other eligible mem-
ber or former member of the Selected Reserve.’’.
SEC. 403. PROSPECTIVE ELIMINATION OF LOAN FEE.
(a) EXEMPTION
FOR
NEW
SERVICEMEMBERS.—
Paragraph (1) of section 3729(c) is amended to read as
follows:
‘‘(c)(1) A fee may not be collected under this sub-
section from—
‘(A) a veteran who is receiving compensation
(or who but for the receipt of retirement pay would
be entitled to receive compensation);
‘‘(B) a surviving spouse of any veteran (includ-
ing a person who died in the active military, naval,
or air service) who died from a service-connected dis-
ability;
‘‘(C) a veteran who first entered active duty
after 
the 
date 
of 
the 
enactment 
of 
the
Servicemembers and Veterans Transition Services
Improvement Act of 1999; or
‘‘(D) 
a 
veteran 
described 
in 
section
3701(b)(5)(A) who first entered the Selected Re-
serve after that date.’’.
SEC. 404. PILOT PROGRAM OF REVISED PROCEDURES IN
DEFAULT CASES.
(a) PAYMENT OF GUARANTY.—Section 3732 of title
38 is amended by inserting at the end the following new
subsection—