‘‘(d)(1) Notwithstanding any other provision of this
section, the Secretary shall conduct in selected test sites
a pilot program of revised procedures in cases of defaults.
Under the pilot program, loan holders are not permitted
to convey to the United States, and the Secretary may
not accept conveyance of, the property that secured a loan
guaranteed under this chapter.
‘‘(2)(A) For the purposes of this subsection, the term
‘test site’ shall mean a geographic area known as a Service
Delivery Network of the Veterans Benefits Administration
that the Secretary designates for the conduct of the pilot
program.
‘‘(B) Not later than 90 days after the date of the
enactment of the Servicemembers and Veterans Transition
Services Improvement Act of 1999, the Secretary shall
publish in the Federal Register, without any requirement
for prior notice and comment, a notice designating one
or more test sites and describing the geographic areas cov-
ered by the Service Delivery Networks involved.
‘‘(3) Either simultaneously with the publication of the
notice described in paragraph (2)(B) or thereafter, the
Secretary shall publish proposed rules for notice and com-
ment regarding the procedures for liquidating loans and
paying guaranty claims under the pilot program. The reg-
ulations may include a modified definition of ‘net value’
that recognizes that the holder will have the responsibility
for disposing of the property.
‘‘(4) The pilot program will apply to all loans closed
in the test site or sites beginning on the first day of the
first month that begins more than 60 days after the date
of the publication of the final version of the regulations
described in paragraph (3).
‘‘(5) The pilot program shall run for 5 years from
the first day of the month described in paragraph (4).
‘‘(6) Not later than the end of the fourth year of the
pilot program, the Secretary shall submit to the Commit-
tees on Veterans’ Affairs of the Senate and the House of
Representative a report on the experience under the pro-
gram. The report shall include—
‘‘(A) information regarding—
‘‘(i) the impact of the program on the
availability of home-loan financing to veterans;
‘‘(ii) the extent to which following the pro-
cedures of the program may reduce the person-
nel requirements of the loan guaranty program
under this chapter; and
‘‘(iii) the extent to which following the pro-
cedures of the program may increase or de-
crease the costs to the United States of the
loan guaranty program; and
‘‘(B) any recommendations that the Secretary
has for legislative action.’’.
PART B—OTHER PROGRAMS
SEC. 
411. 
PARTICIPATION 
IN 
FEDERAL 
EMPLOYEES’
THRIFT SAVINGS PLAN.
(a) GENERAL.—Subchapter III of chapter 84 of title
5 is amended by adding at the end the following new sec-
tion:
‘‘§ 8440e. Members of the Armed Forces
‘‘(a)(1) A member of the armed forces serving on ac-
tive duty may elect to contribute to the Thrift Savings
Plan.
‘‘(2) An election may be made under paragraph (1)
only during a period provided under section 8432(b) for
individuals subject to chapter 84.
‘‘(b)(1) Except as otherwise provided in this sub-
section, the provisions of this subchapter and subchapter
VII shall apply with respect to a member of the armed
forces making contributions to the Thrift Savings Fund.
‘‘(2) A member of the Armed Forces may not contrib-
ute more than 5 percent of the member’s basic pay but
may contribute any part or all the member’s reenlistment
bonus.
‘‘(3) No contributions may be made for the benefit
of the member under section 8432.
‘‘(4) The transfer of a member from one branch of
the armed forces to another, without a break in service
of more than 30 days, shall not be considered to be a sepa-
ration from service that entitles the member to a with-
drawal of the member’s account under the Thrift Savings
Plan.
‘‘(c) The Executive Director, after consultation with
the Secretary of Defense, may prescribe regulations to
carry out this section.
‘‘(d) For the purposes of this section, the terms ‘ac-
tive duty’ and ‘armed forces’ have the meanings provided
in subsections (d)(1) and (a)(4) of section 101 of title
10.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 84 of title 5 is amended by
inserting after the reference to section 8440d the follow-
ing:
‘‘8440e. Members of the Armed Forces.’’.
(c) EFFECTIVE DATE.—This section shall take effect
180 days after the date of the enactment of this Act.
SEC. 412. ENHANCEMENT OF ECONOMIC OPPORTUNITY
THROUGH ENTREPRENEURSHIP.
(a) ESTABLISHMENT
OF OFFICE
OF VETERANS
BUSINESS ASSISTANCE.—Part V of title 38 is amended
by adding at the end the following new chapter:
‘‘CHAPTER 79—OFFICE OF VETERANS
BUSINESS ASSISTANCE
‘‘Sec.
‘‘7901. Organization of the Office.
‘‘7902. Functions of the Office.
‘‘§ 7901. Organization of the Office
‘‘(a) There shall be established in the Office of the
Secretary an Office of Veterans Business Assistance. The
primary function of the Office of Veterans Business As-
sistance shall be to carry out a program of comprehensive
business assistance to veterans.
‘‘(b) The Secretary shall—
‘‘(1) appoint a Director of the Office of Veter-
ans Business Assistance; and
‘‘(2) shall assign to that office such personnel,
and allocate to that office such resources, as are
necessary for the office to carry out its responsibil-
ities under this chapter.
‘‘§ 7902. Functions of the Office
‘‘(a) The Office of Veterans Business Assistance shall
administer a program that makes available to veterans:
‘‘(1) access to information regarding (A) the
services and assistance available to veterans who
wish to operate small businesses, and (B) other sub-
jects of use to such veterans;
‘‘(2) assistance in gaining access to capital;
‘‘(3) management assistance; and
‘‘(4) assistance in gaining access to markets for
their products or services.
‘‘(b) In carrying out the programs under subsection
(a), the Office of Veterans Business Assistance shall:
‘‘(1) create and maintain an information clear-
inghouse through an electronic site on the internet
that displays information regarding Federal, State,
local, and private sector programs of assistance to
veterans and others, the offices where detailed such
information can be obtained, and a description of
those programs;
‘‘(2) in cooperation with the Department of De-
fense, provide servicemembers and veterans, through
a site on the internet or correspondence study, self-
directed business education programs whereby
servicemembers and veterans can earn college credit
in the fields of business fundamentals, accounting,
marketing, and other subjects appropriate for opera-
tors of new small businesses;
‘‘(3) consult with the Small Business Adminis-
tration in order to assist the Administration to ex-
pand and adapt its internet-based database contain-
ing information on small businesses wishing to do
business with the Federal government (known as
‘‘PRO-NET’’) so as to enable veterans to have infor-
mation regarding their businesses, along with their
veteran and disability status, included in the data-
base.’’.
(b) LOANS FOR VETERANS’ SMALL BUSINESSES.—
(1) Section 631 of title 15 is amended by adding at the
end the following new subsections:
‘‘(o) ‘Veterans’ small business concern’ defined—
‘‘(1) For the purposes of this chapter, the term
‘veterans’ small business concern’ means a small
business concern—
‘‘(A) of which at least 51 percent is owned
by one or more veterans, or in the case of a
publicly-owned business, at least 51 percent of
the stock of which is owned by one or more vet-
erans; and
‘‘(B) whose management and daily busi-
ness operation are controlled by veterans.
‘‘(2) For the purposes of this subsection, the
term ‘veteran’ has the meaning provided in section
101(2) of title 38.
‘‘(p) Disabled veterans’ small business concern
defined—
‘‘(1) For the purposes of this chapter, the term
‘disabled veterans’ small business concern’ means a
small business concern—
‘‘(A) of which at least 51 percent is owned
by one or more veterans who have service-con-
nected disabilities rated as 50 percent or more
disabling for purposes of chapter 11 of title 38,
or in the case of a publicly-owned business, at
least 51 percent of the stock of which is owned
by one or more such veterans; and
‘‘(B) the management and daily business
operations of which are controlled by such vet-
erans.
‘‘(2) For the purposes of this subsection—
‘‘(A) the term ‘veteran’ has the meaning
provided in section 101(2) of title 38; and
‘‘(B) the term ‘service-connected’ has the
meaning provided in section 101(16) of title
38.’’.
(2) Section 636(a) of title 15 is amended—
(A) in the first sentence by inserting ‘‘veterans’
small business concerns and disabled veterans’ small
business concerns’’ after ‘‘tribes,’’; and
(B) in paragraph (2), by inserting at the end
the following new subparagraph:
‘‘(D) Loans to veterans’ small business concerns.—
The target for the total amount of loans to veterans’ small
business concerns under this subsection shall be $10 mil-
lion per fiscal year. The making of such loans shall be
given weight by Federal financial supervisory agencies in
determining whether the lender is meeting the credit needs
of its entire community for purposes of the Community
Reinvestment Act of 1977 (chapter 30 of title 12, United
States Code).’’.
(c) FEDERAL SUBCONTRACTS.—Section 637(a)(4) of
title 15 is amended—
(1) in clause (i) of subparagraph (A), by strik-
ing out ‘‘or’’ after ‘‘tribe),’’ and by inserting ‘‘or
(IV) a disabled veterans’ small business concern,’’
after ‘‘organization,’’;
(2) in clause (ii) of subparagraph (A), by strik-
ing out ‘‘or’’ after ‘‘tribe),’’ and by inserting a
comma and ‘‘or (IV) a disabled veterans’ small busi-
ness concern’’ before the period at the end; and
(3) in subparagraph (B), by striking out ‘‘or’’
after ‘‘subparagraph (A)(ii)(II),’’ and by inserting a
comma and ‘‘or (iv) a disabled veterans’ small busi-
ness concern’’ before the period at the end.
(d) GOALS FOR VETERANS’ BUSINESSES IN FED-
ERAL PROCUREMENTS.—Section 644(g)(1) of title 15 is
amended—
(1) in the first sentence, by inserting ‘‘veterans’
small business concerns and disabled veterans’ small
business concerns’’ after ‘‘disadvantaged individ-
uals’’; and
(2) by adding at the end the following new sen-
tences: ‘‘The goals for the Departments of Defense,
Labor, and Veterans Affairs for participation by vet-
erans’ small business concerns shall be established
at not less than X percent of the total value of all
prime contract and subcontract awards for each de-
partment for each year and, for participation by dis-
abled veterans’ small business concerns, not less
than Y percent of all prime contract and subcontract
awards for each fiscal year.’’.
(e) OUTREACH ON FEDERAL PROCUREMENT OPPOR-
TUNITIES.—The Secretary of Veterans Affairs, the Sec-
retary of Labor, and the Administrator of the Small Busi-
ness Administration shall jointly develop and submit to the
President a program of comprehensive outreach to assist
veteran entrepreneurs. The program shall include informa-
tion on procurement opportunities within Federal depart-
ments and agencies. Following receipt of the proposed pro-
gram, the President shall direct that such a program be
conducted through the Offices of Small and Disadvan-
taged Business Utilization in the departments and agen-
cies.
SEC. 413. TERMINATION OF THE PERSIAN GULF WAR PE-
RIOD FOR PURPOSES OF VETERANS’ BENE-
FITS.
(a) TERMINATION DATE.—Paragraph (33) of section
101 of title 38 is amended by striking out ‘‘the date’’ and
all that follows and inserting in lieu thereof ‘‘February 28,
1993.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on the date of the enact-
ment of this Act and shall not apply only to benefits and
services for which an application was submitted before
that date.
TITLE V—ORGANIZATIONAL
STRUCTURE
SEC. 501. JOINT HEALTH-CARE POLICY STAFF.
(a) JOINT STAFF.—The Under Secretary for Health
of the Department of Veterans Affairs and the Assistant
Secretary for Health Affairs of the Department of Defense
shall establish a unified, joint policy staff that will have
responsibility for (1) identifying opportunities to increase
joint, cooperative, and coordinated operations in the
health-care systems of the departments and the sharing
of health-care resources by the two departments, and (2)
initiating, facilitating, and monitoring efforts to take ad-
vantage of those opportunities.
(b) PRINCIPLES.—The joint staff shall be guided by
the following principles:
(1) The departments should promote the en-
hancement of military medical readiness.
(2) The departments should provide access to
high quality health care in the most cost-effective
manner possible.
(3) the departments must focus on the needs of
their beneficiaries rather than their systems and tra-
ditional political concerns.
(4) The departments should seek to maximize
the number of beneficiaries served within available
resources.
(5) The departments should provide their bene-
ficiaries with choices of health-care options and pro-
viders.
(6) The departments should incorporate infor-
mation technology and managerial cost accounting
systems as major enablers of a greater partnership
between the departments.
SEC. 502. CARE FOR DEPARTMENT OF DEFENSE AND DE-
PARTMENT OF VETERANS AFFAIRS BENE-
FICIARIES AT OTHER SYSTEM’S FACILITIES.
(a) BENEFICIARIES’ ELIGIBILITY.—Any person who
is an eligible health-care beneficiary of either the Depart-
ment of Veterans Affairs or the Department of Defense
shall, in accordance with policies and procedures adopted
under subsection (b), be eligible to receive from the other
department the same kinds of health-care services that the
beneficiary is eligible to receive from the department of
which that person is a primary beneficiary.
(b) JOINT POLICIES.—The Secretaries of Defense
and Veterans Affairs shall jointly establish policies and
procedures for their respective departments to furnish
health care to the eligible health-care beneficiaries of the
other department. Those policies and procedures shall—
(1) provide for protections against the denial or
delay of services from a department to its primary
beneficiaries as the result of furnishing care to the
beneficiaries of the other department;
(2) include such limitations on the furnishing of
care by a department to persons who are not the
primary beneficiaries of that department as are nec-
essary to protect against overcrowding at the depart-
ment’s facilities;
(3) provide for rates of reimbursement for the
care provided by a department to persons who are
the primary beneficiaries of the other department;
and
(4) establish such other conditions for the fur-
nishing of health-care by a department to persons
who are not that department’s primary beneficiaries
as are necessary to provide for the orderly and effi-
cient furnishing of care by that department.
(c) SPECIAL AUTHORITIES.—The Secretaries of De-
fense and Veterans Affairs shall, in the interest of effi-
ciency in the administration of health-care services, have
the authority to include in the policies and procedures
adopted under subsection (b) authorities—
(1) to waive copayments and deductibles and
limitations on the kinds of services for which a bene-
ficiary may be eligible; and
(2) to leave in place or jointly modify or revoke
sharing agreements under section 1104 of title 10
and section 8111 of title 38, United States Code.
(d) DEFINITIONS.—For 
the 
purposes 
of 
this
section—
(1) the term ‘‘eligible health-care beneficiary’’
means a person who has eligibility to receive health-
care from the Department of Veterans Affairs under
title 38, United States Code (other than under sec-
tion 1711(b)) of that title) or from the Department
of Defense under chapter 55 of title 10, United
States Code; and
(2) the term ‘‘primary beneficiary’’ means, in
the case of the Department of Veterans Affairs, an
eligible health-care beneficiary who has eligibility
under such title 38 and, in the case of the Depart-
ment of Defense, an eligible health-care beneficiary
who has eligibility under such chapter 55.
SEC. 503. STUDY OF INFRASTRUCTURE REALIGNMENT.
(a) REQUIREMENT FOR STUDY.—The Secretaries of
Defense and Veterans Affairs shall jointly enter into an
agreement with an independent entity for the study of the
physical infrastructure, the organizational structures, and
the operations of the health-care systems of the Depart-
ments of Defense and Veterans Affairs.
(b) PURPOSES OF STUDY.—(1) The purposes of the
study required by subsection (a) shall be—
(A) to examine the opportunities for joint oper-
ations, including the joint operation of medical facili-
ties, of the health-care systems of the Departments
of Defense and Veterans Affairs; and
(B) determine the most effective process by
which joint operations that would contribute to the
most cost-effective furnishing of quality health-care
services in response to demands of the beneficiaries
of the two system could be achieved.
(2) In making the determination required by para-
graph (1)(B), the entity conducting the study shall con-
sider, 
among 
other 
options, 
the 
advisability 
of
legislation—
(A) establishing a commission that would (i)
obtain recommendations from the two departments,
(ii) take into account the medical needs that would
result from a worst-case wartime scenario, and (iii)
formulate its own recommendations for best con-
forming the operations and physical infrastructure
of the departments to the demand for care from the
eligible beneficiaries of the two departments; and
(B) providing for the President either to reject
the commission’s recommendations or to forward
them without amendment to Congress for consider-
ation under a process whereby Congress, under pro-
cedures for expedited consideration, could either re-
ject the recommendations or enact them into law
without amendment.
(c) REPORT.—(1) The agreement under subsection
(a) shall require the entity conducting the study to submit
to the Secretaries of Defense and Veterans Affairs, not
later than one year after the date of the enactment of this
Act, a report containing the entity’s findings and rec-
ommendations
(2) Not later than 90 days after receiving the report,
the Secretaries shall jointly submit to the Committees on
Veterans’ Affairs of the Senate and the House of Rep-
resentatives, the Committee on Armed Services of the Sen-
ate and the Committee on National Security of the House
of Representatives copies of the report, together with the
comments and recommendations of the Secretaries.
(d) FUNDING.—The Secretaries of Defense and Vet-
erans Affairs shall share the costs of the study evenly, uti-
lizing funds appropriated to their respective departments
for the furnishing of health care.
SEC. 504. CONGRUENT GEOGRAPHIC ADMINISTRATIVE
STRUCTURES.
The Secretaries of Defense and Veterans Affairs
shall—
(1) conduct a review of the geographic bound-
aries of the administrative structures of the field op-
erations of the Departments of Defense and Veter-
ans Affairs health-care systems (known as Regions
in the Department of Defense and Veterans Inte-
grated Service Networks in the Department of Vet-
erans); and
(2) take action to make those boundaries con-
gruent except where doing so would interfere with