IB 
Union Calendar No. 308 
114TH CONGRESS 
2D SESSION 
H. R. 677 
[Report No. 114–405] 
To amend title 38, United States Code, to provide for annual cost-of-living 
adjustments to be made automatically by law each year in the rates 
of disability compensation for veterans with service-connected disabilities 
and the rates of dependency and indemnity compensation for survivors 
of certain service-connected disabled veterans. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 3, 2015 
Mr. ABRAHAM (for himself and Ms. TITUS) introduced the following bill; 
which was referred to the Committee on Veterans’ Affairs 
FEBRUARY 1, 2016 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on February 3, 2015] 
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A BILL 
To amend title 38, United States Code, to provide for annual 
cost-of-living adjustments to be made automatically by 
law each year in the rates of disability compensation 
for veterans with service-connected disabilities and the 
rates of dependency and indemnity compensation for sur-
vivors of certain service-connected disabled veterans. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Heroes COLA Act of 2015’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Expansion of eligibility for medallions. 
Sec. 3. Definitions relating to claims for benefits under laws administered by the 
Secretary of Veterans Affairs. 
Sec. 4. Quarterly reports on formal and informal claims for benefits under laws 
administered by Secretary of Veterans Affairs. 
Sec. 5. Expedited payment of survivor’s benefits. 
Sec. 6. Priority for processing claims of the Department of Veterans Affairs. 
Sec. 7. Treatment of medical evidence provided by non-Department of Veterans 
Affairs medical professionals in support of claims for disability 
compensation. 
Sec. 8. Automatic annual increase in rates of disability compensation and de-
pendency and indemnity compensation. 
Sec. 9. Improvement of fiduciaries for veterans. 
Sec. 10. Board of Veterans’ Appeals video hearings. 
Sec. 11. Improvements to authority for performance of medical disabilities exami-
nations by contract physicians. 
Sec. 12. Pilot program on fully developed appeals. 
Sec. 13. Deadline for certification of appeals forms by regional offices of the De-
partment of Veterans Affairs. 
Sec. 14. Evaluation of backlog of disability claims and appeals of claims of De-
partment of Veterans Affairs. 
Sec. 15. Methods for validating certain World War II Merchant Mariner service 
considered to be active service by the Secretary of Veterans Af-
fairs. 
Sec. 16. Designation of American World War II Cities. 
Sec. 17. Sense of Congress regarding American veterans disabled for life. 
SEC. 2. EXPANSION OF ELIGIBILITY FOR MEDALLIONS. 
Section 2306(d)(4) of title 38, United States Code, is 
amended to read as follows: 
‘‘(4)(A) In lieu of furnishing a headstone or marker 
under this subsection to a deceased individual described in 
subparagraph (B), the Secretary may furnish, upon request, 
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a medallion or other device of a design determined by the 
Secretary to signify the deceased individual’s status as a 
veteran, to be attached to a headstone or marker furnished 
at private expense. 
‘‘(B) A deceased individual described in this subsection 
is an individual who— 
‘‘(i) served in the Armed Forces on or after April 
6, 1917; and 
‘‘(ii) is eligible for a headstone or marker fur-
nished under paragraph (1) (or would be so eligible 
but for the date of the death of the individual).’’. 
SEC. 3. DEFINITIONS RELATING TO CLAIMS FOR BENEFITS 
UNDER LAWS ADMINISTERED BY THE SEC-
RETARY OF VETERANS AFFAIRS. 
(a) DEFINITIONS.— 
(1) IN
GENERAL.—Section 5100 of title 38, 
United States Code, is amended to read as follows: 
‘‘§ 5100. Definitions 
‘‘In this chapter: 
‘‘(1) The term ‘claimant’ means any individual 
applying for, or submitting a claim for, any benefit 
under the laws administered by the Secretary. 
‘‘(2) The term ‘claim’ means a communication 
in writing requesting a determination of entitlement 
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or evidencing a belief in entitlement to a benefit 
under the laws administered by the Secretary. 
‘‘(3) The term ‘formal claim’ means a claim sub-
mitted on an application form prescribed by the Sec-
retary.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 51 of such title is 
further amended by striking the item relating to sec-
tion 5100 and inserting the following new item: 
‘‘5100. Definitions.’’. 
(b) EFFECTIVE DATE.—Section 5100 of title 38, 
United States Code, as amended by subsection (a), shall 
take effect on the date of the enactment of this Act and shall 
apply with respect to a claim submitted on or after such 
date. 
SEC. 4. QUARTERLY REPORTS ON FORMAL AND INFORMAL 
CLAIMS FOR BENEFITS UNDER LAWS ADMIN-
ISTERED BY SECRETARY OF VETERANS AF-
FAIRS. 
(a) QUARTERLY REPORTS.—During the five-year pe-
riod beginning on the date of the enactment of this Act, 
the Secretary shall submit to the Committees on Veterans’ 
Affairs of the Senate and House of Representatives quar-
terly reports on formal and informal claims submitted to 
the Secretary. Each such report shall include, for the three- 
month period covered by the report— 
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(1) the total number of claims submitted to the 
Secretary; 
(2) the total number of informal claims sub-
mitted to the Secretary; 
(3) the total number of formal claims submitted 
to the Secretary; 
(4) the total number of forms indicating an in-
tent to file a claim for benefits submitted to the Sec-
retary; 
(5) the total number of claims notification letters 
that included an invitation to the claimant to submit 
an additional formal claim that was reasonably 
raised during the adjudication of the claim for which 
the notification letter is sent; 
(6) of the claimants who received notification let-
ters described in paragraph (5), the total number who 
submitted a formal claim in response to the invita-
tion included in the letter; 
(7) the total number of electronically filed claims 
submitted to the Secretary; and 
(8) the total number of fully-developed claims 
submitted to the Secretary. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that the Secretary of Veterans Affairs should develop a des-
ignated form for an increase or reopening of a claim that 
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does not require the resubmittal of information previously 
submitted on a formal claim form. 
(c) DEFINITIONS.—In this section: 
(1) The terms ‘‘claim’’, ‘‘claimant’’, and ‘‘formal 
claim’’ have the meanings given such terms in section 
5100 of title 38, United States Code, as amended by 
section 4. 
(2) The term ‘‘informal claim’’ means a commu-
nication in writing requesting a determination of en-
titlement or evidencing a belief in entitlement, to a 
benefit under the laws administered by the Secretary 
of Veterans Affairs that— 
(A) is submitted in a format other than on 
an application form prescribed by the Secretary; 
(B) indicates an intent to apply for one or 
more benefits under the laws administered by the 
Secretary; 
(C) identifies the benefit sought; 
(D) is made or submitted by a claimant, his 
or her duly authorized representative, a Member 
of Congress, or another person acting on behalf 
of a claimant who meets the requirements estab-
lished by the Secretary for such purpose; and 
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(E) may include a report of examination or 
hospitalization, if the report relates to a dis-
ability which may establish such an entitlement. 
(3) The term ‘‘reasonably raised’’ with respect to 
a claim means that evidence of an entitlement to a 
benefit under the laws administered by the Secretary 
is inferred or logically placed at issue upon a sympa-
thetic reading of another claim and the record devel-
oped with respect to that claim. 
SEC. 5. EXPEDITED PAYMENT OF SURVIVOR’S BENEFITS. 
(a) IN GENERAL.—Section 5101(a)(1) of title 38, 
United States Code, is amended— 
(1) by striking ‘‘A specific’’ and inserting ‘‘(A) 
Except as provided in subparagraph (B), a specific’’; 
and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B)(i) The Secretary may pay benefits under chapters 
13 and 15 and sections 2302, 2307, and 5121 of this title 
to a survivor of a veteran who has not filed a formal claim 
if the Secretary determines that the record contains suffi-
cient evidence to establish the entitlement of the survivor 
to such benefits. 
‘‘(ii) For purposes of this subparagraph and section 
5110 of this title, the earlier of the following dates shall 
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be treated as the date of the receipt of the survivor’s applica-
tion for benefits described in clause (i): 
‘‘(I) The date on which the survivor of a veteran 
(or the representative of such a survivor) notifies the 
Secretary of the death of the veteran through a death 
certificate or other relevant medical evidence indi-
cating that the death was due to a service-connected 
or compensable disability. 
‘‘(II) The head of any other department or agen-
cy of the Federal Government notifies the Secretary of 
the death of the veteran. 
‘‘(iii) In notifying the Secretary of the death of a vet-
eran as described in clause (ii)(I), the survivor (or the rep-
resentative of such a survivor) may submit to the Secretary 
additional documents relating to such death without being 
required to file a formal claim.’’. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, the Secretary of 
Veterans Affairs shall submit to the Committee on 
Veterans’ Affairs of the Senate and the Committee on 
Veterans’ Affairs of the House of Representatives a re-
port on benefits paid pursuant to covered claims. 
(2) CONTENTS.—The report under paragraph (1) 
shall include the following: 
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(A) The number of covered claims adju-
dicated during the one-year period preceding the 
date of the report, disaggregated by the following: 
(i) Claims in which the claimant 
claimed entitlement to compensation on the 
basis of the claimant’s status as the spouse 
of a deceased veteran. 
(ii) Claims in which the claimant 
claimed entitlement to compensation on the 
basis of the claimant’s status as the child of 
a deceased veteran. 
(iii) Claims in which the claimant 
claimed entitlement to compensation on the 
basis of the claimant’s status as the parent 
of a deceased veteran. 
(B) The number of covered claims that were 
adjudicated during such period and for which 
compensation was not awarded, disaggregated by 
clauses (i) through (iii) of subparagraph (A). 
(C) A comparison of the accuracy and time-
liness of covered claims adjudicated during such 
period with non-covered claims filed by survivors 
of a veteran. 
(D) The findings of the Secretary with re-
spect to adjudicating covered claims. 
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(E) Such recommendations as the Secretary 
may have for legislative or administrative action 
to improve the adjudication of claims submitted 
to the Secretary for benefits under chapters 13 
and 15 and sections 2302, 2307, and 5121 of 
title 38, United States Code. 
(3) COVERED
CLAIM
DEFINED.—In this sub-
section, the term ‘‘covered claim’’ means a claim cov-
ered by section 5101(a)(1)(B) of title 38, United 
States Code, as added by subsection (a). 
(c) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall apply with respect to claims for benefits 
based on a death occurring on or after the date of the enact-
ment of this Act. 
SEC. 6. PRIORITY FOR PROCESSING CLAIMS OF THE DE-
PARTMENT OF VETERANS AFFAIRS. 
(a) IN GENERAL.—Subchapter I of chapter 51 of title 
38, United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 5109C. Priority for processing claims 
‘‘(a) PRIORITY.—In processing claims for compensa-
tion under this chapter, the Secretary shall provide the fol-
lowing claimants with priority over other claimants: 
‘‘(1) Veterans who have attained the age of 70. 
‘‘(2) Veterans who are terminally ill. 
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‘‘(3) Veterans with life-threatening illnesses. 
‘‘(4) Homeless veterans (as defined in section 
2002 of this title). 
‘‘(5) Veterans who were awarded the Medal of 
Honor. 
‘‘(6) Veterans who are former prisoners of war. 
‘‘(7) Veterans whose claims are being reviewed 
again in relation to a previously denied claim relat-
ing to military sexual trauma. 
‘‘(8) Veterans whom the Secretary determines, on 
a case-by-case basis, are seriously or very seriously 
injured. 
‘‘(9) Veterans whom the Secretary determines, on 
a case-by-case basis, should be given priority under 
this section based on an application for good cause es-
tablished by the Secretary. 
‘‘(b) REGULATIONS.—The Secretary shall prescribe 
regulations to carry out subsection (a).’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 5109B the following new item: 
‘‘5109C. Priority for processing claims.’’. 
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SEC. 7. TREATMENT OF MEDICAL EVIDENCE PROVIDED BY 
NON-DEPARTMENT OF VETERANS AFFAIRS 
MEDICAL PROFESSIONALS IN SUPPORT OF 
CLAIMS FOR DISABILITY COMPENSATION. 
(a) ACCEPTANCE OF REPORTS OF PRIVATE PHYSICIAN 
EXAMINATIONS.—Section 5125 of title 38, United States 
Code, is amended— 
(1) by striking ‘‘For purposes’’ and inserting 
‘‘(a) IN GENERAL.—For purposes’’; and 
(2) by adding at the end the following new sub-
sections: 
‘‘(b) SUFFICIENCY OF EVIDENCE.—If a veteran has 
submitted a medical opinion or report of a medical exam-
ination administered by a private physician in support of 
the veteran’s claim, the Secretary may not order a medical 
examination to be administered by a Department physician 
unless the Secretary provides the veteran with a thorough 
explanation of why the medical opinion or report submitted 
by the veteran was not sufficiently complete and the reason 
why additional medical evidence is necessary. 
‘‘(c) SUFFICIENTLY COMPLETE DEFINED.—For pur-
poses of a medical opinion or report described in subsection 
(a), the term ‘sufficiently complete’ means competent, cred-
ible, probative, and containing such information as may 
be required to make a decision on the claim for which the 
medical opinion or report is provided.’’. 
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(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to medical evidence sub-
mitted after the date that is one year after the date of the 
enactment of this Act. 
SEC. 8. AUTOMATIC ANNUAL INCREASE IN RATES OF DIS-
ABILITY COMPENSATION AND DEPENDENCY 
AND INDEMNITY COMPENSATION. 
(a) INDEXING TO SOCIAL SECURITY INCREASES.—Sec-
tion 5312 of title 38, United States Code, is amended by 
adding at the end the following new subsection: 
‘‘(d)(1) Whenever there is an increase in benefit 
amounts payable under title II of the Social Security Act 
(42 U.S.C. 401 et seq.) as a result of a determination made 
under section 215(i) of such Act (42 U.S.C. 415(i)), the Sec-
retary shall, effective on the date of such increase in benefit 
amounts, increase the dollar amounts in effect for the pay-
ment of disability compensation and dependency and in-
demnity compensation by the Secretary, as specified in 
paragraph (2), as such amounts were in effect immediately 
before the date of such increase in benefit amounts payable 
under title II of the Social Security Act, by the same per-
centage as the percentage by which such benefit amounts 
are increased. 
‘‘(2) The dollar amounts to be increased pursuant to 
paragraph (1) are the following: 
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‘‘(A) WARTIME
DISABILITY
COMPENSATION.— 
Each of the dollar amounts in effect under section 
1114 of this title. 
‘‘(B) ADDITIONAL COMPENSATION FOR DEPEND-
ENTS.—Each of the dollar amounts in effect under 
section 1115(1) of this title. 
‘‘(C) 
CLOTHING
ALLOWANCE.—The 
dollar 
amount in effect under section 1162 of this title. 
‘‘(D) DEPENDENCY AND INDEMNITY COMPENSA-
TION
TO
SURVIVING
SPOUSE.—Each of the dollar 
amounts in effect under subsections (a) through (d) of 
section 1311 of such title. 
‘‘(E) DEPENDENCY AND INDEMNITY COMPENSA-
TION TO CHILDREN.—Each of the dollar amounts in 
effect under sections 1313(a) and 1314 of such title. 
‘‘(3) Whenever there is an increase under paragraph 
(1) in amounts in effect for the payment of disability com-
pensation and dependency and indemnity compensation, 
the Secretary shall publish such amounts, as increased pur-
suant to such paragraph, in the Federal Register at the 
same time as the material required by section 215(i)(2)(D) 
of the Social Security Act (42 U.S.C. 415(i)(2)(D)) is pub-
lished by reason of a determination under section 215(i) 
of such Act (42 U.S.C. 415(i)). 
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‘‘(4) Each dollar amount increased under paragraph 
(1), if not a whole dollar amount, shall be rounded to the 
next lower whole dollar amount. 
‘‘(5) The Secretary of Veterans Affairs may adjust ad-
ministratively, consistent with the increases made under 
subsection (a), the rates of disability compensation payable 
to persons under section 10 of Public Law 85–857 (72 Stat. 
1263) who have not received compensation under chapter 
11 of this title.’’. 
(b) EFFECTIVE DATE.—Subsection (d) of section 5312 
of title 38, United States Code, as added by subsection (a) 
of this section, shall take effect on December 1, 2015. 
SEC. 9. IMPROVEMENT OF FIDUCIARIES FOR VETERANS. 
(a) APPOINTMENT AND SUPERVISION.— 
(1) Section 5502 of title 38, United States Code, 
is amended to read as follows: 
‘‘§ 5502. Appointment of fiduciaries 
‘‘(a) APPOINTMENT.—Where it appears to the Sec-
retary that the interest of the beneficiary would be served 
thereby, payment of benefits under any law administered 
by the Secretary may be made directly to the beneficiary 
or to a relative or some other fiduciary for the use and ben-
efit of the beneficiary, regardless of any legal disability on 
the part of the beneficiary. 
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‘‘(b) APPEALS.—(1) If the Secretary determines a ben-
eficiary to be mentally incompetent for purposes of appoint-
ing a fiduciary under this chapter, the Secretary shall pro-
vide such beneficiary with a written statement detailing the 
reasons for such determination. 
‘‘(2) A beneficiary whom the Secretary has determined 
to be mentally incompetent for purposes of appointing a 
fiduciary under this chapter may appeal such determina-
tion. 
‘‘(c) MODIFICATION.—(1) A beneficiary for whom the 
Secretary appoints a fiduciary under this chapter may, at 
any time, request the Secretary to— 
‘‘(A) remove the fiduciary so appointed; and 
‘‘(B) have a new fiduciary appointed. 
‘‘(2) The Secretary shall comply with a request under 
paragraph (1) if the Secretary determines that the request 
is made in good faith and— 
‘‘(A) the fiduciary requested to be removed re-
ceives a fee from the beneficiary and a suitable volun-
teer fiduciary is available to assist the beneficiary; or 
‘‘(B) the beneficiary provides credible informa-
tion that the fiduciary requested to be removed is— 
‘‘(i) not acting in the interest of the bene-
ficiary; or 
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‘‘(ii) unable to effectively serve the bene-
ficiary because of an irreconcilable personality 
conflict or disagreement. 
‘‘(3) The Secretary shall ensure that any removal or 
new appointment of a fiduciary under paragraph (1) does 
not delay or interrupt the beneficiary’s receipt of benefits 
administered by the Secretary. 
‘‘(d) INDEPENDENCE.—A fiduciary appointed by the 
Secretary shall operate independently of the Department to 
determine the actions that are in the interest of the bene-
ficiary. 
‘‘(e) PREDESIGNATION.—A veteran may predesignate 
a fiduciary by— 
‘‘(1) submitting written notice to the Secretary 
of the predesignated fiduciary; or 
‘‘(2) submitting a form provided by the Sec-
retary for such purpose. 
‘‘(f) APPOINTMENT
OF NON-PREDESIGNATED FIDU-
CIARY.—If a beneficiary designates an individual to serve 
as a fiduciary under subsection (e) and the Secretary ap-
points an individual not so designated as the fiduciary for 
such beneficiary, the Secretary shall notify such beneficiary 
of— 
‘‘(1) the reason why such designated individual 
was not appointed; and 
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‘‘(2) the ability of the beneficiary to modify the 
appointed fiduciary under subsection (c). 
‘‘(g) PRIORITY OF APPOINTMENT.—In appointing a fi-
duciary under this chapter, if a beneficiary does not des-
ignate a fiduciary pursuant to subsection (e), to the extent 
possible the Secretary shall appoint a person who is— 
‘‘(1) a relative of the beneficiary; 
‘‘(2) appointed as guardian of the beneficiary by 
a court of competent jurisdiction; or 
‘‘(3) authorized to act on behalf of the bene-
ficiary under a durable power of attorney.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 55 of title 38, 
United States Code, is amended by striking the item 
relating to section 5502 and inserting the following: 
‘‘5502. Appointment of fiduciaries.’’. 
(b) SUPERVISION.— 
(1) IN GENERAL.—Chapter 55 of title 38, United 
States Code, is amended by inserting after section 
5502, as amended by subsection (a)(1), the following 
new section: 
‘‘§ 5502A. Supervision of fiduciaries 
‘‘(a) COMMISSION.—(1)(A) In a case in which the Sec-
retary determines that a commission is necessary in order 
to obtain the services of a fiduciary in the best interests 
of a beneficiary, the Secretary may authorize a fiduciary 
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appointed by the Secretary to obtain from the monthly ben-
efits provided to the beneficiary a reasonable commission 
for fiduciary services rendered, but the commission for any 
month may not exceed the lesser of the following amounts: 
‘‘(i) The amount that equals three percent of the 
monthly monetary benefits under laws administered 
by the Secretary paid on behalf of the beneficiary to 
the fiduciary. 
‘‘(ii) $35. 
‘‘(B) A commission paid under this paragraph may 
not be derived from any award to a beneficiary regarding 
back pay or retroactive benefits payments. 
‘‘(C) A commission may not be authorized for a fidu-
ciary who receives any other form of remuneration or pay-
ment in connection with rendering fiduciary services for 
benefits under this title on behalf of the beneficiary. 
‘‘(D) In accordance with section 6106 of this title, a 
commission may not be paid to a fiduciary if the Secretary 
determines that the fiduciary misused any benefit payments 
of a beneficiary. 
‘‘(E) If the Secretary determines that the fiduciary has 
misused any benefit or payments of a beneficiary, the Sec-
retary may revoke the fiduciary status of the fiduciary. 
‘‘(2) Where, in the opinion of the Secretary, any fidu-
ciary receiving funds on behalf of a Department beneficiary 
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is acting in such a number of cases as to make it impracti-
cable to conserve properly the estates or to supervise the per-
sons of the beneficiaries, the Secretary may refuse to make 
future payments in such cases as the Secretary may deem 
proper. 
‘‘(b) COURT.—Whenever it appears that any fiduciary, 
in the opinion of the Secretary, is not properly executing 
or has not properly executed the duties of the trust of such 
fiduciary or has collected or paid, or is attempting to collect 
or pay, fees, commissions, or allowances that are inequitable 
or in excess of those allowed by law for the duties performed 
or expenses incurred, or has failed to make such payments 
as may be necessary for the benefit of the ward or the de-
pendents of the ward, then the Secretary may appear, by 
the Secretary’s authorized attorney, in the court which has 
appointed such fiduciary, or in any court having original, 
concurrent, or appellate jurisdiction over said cause, and 
make proper presentation of such matters. The Secretary, 
in the Secretary’s discretion, may suspend payments to any 
such fiduciary who shall neglect or refuse, after reasonable 
notice, to render an account to the Secretary from time to 
time showing the application of such payments for the ben-
efit of such incompetent or minor beneficiary, or who shall 
neglect or refuse to administer the estate according to law. 
The Secretary may require the fiduciary, as part of such 
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account, to disclose any additional financial information 
concerning the beneficiary (except for information that is 
not available to the fiduciary). The Secretary may appear 
or intervene by the Secretary’s duly authorized attorney in 
any court as an interested party in any litigation insti-
tuted by the Secretary or otherwise, directly affecting money 
paid to such fiduciary under this section. 
‘‘(c) PAYMENT OF CERTAIN EXPENSES.—Authority is 
hereby granted for the payment of any court or other ex-
penses incident to any investigation or court proceeding for 
the appointment of any fiduciary or other person for the 
purpose of payment of benefits payable under laws adminis-
tered by the Secretary or the removal of such fiduciary and 
appointment of another, and of expenses in connection with 
the administration of such benefits by such fiduciaries, or 
in connection with any other court proceeding hereby au-
thorized, when such payment is authorized by the Secretary. 
‘‘(d) TEMPORARY PAYMENT OF BENEFITS.—All or any 
part of any benefits the payment of which is suspended or 
withheld under this section may, in the discretion of the 
Secretary, be paid temporarily to the person having custody 
and control of the incompetent or minor beneficiary, to be 
used solely for the benefit of such beneficiary, or, in the case 
of an incompetent veteran, may be apportioned to the de-
pendent or dependents, if any, of such veteran. Any part 
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not so paid and any funds of a mentally incompetent or 
insane veteran not paid to the chief officer of the institution 
in which such veteran is a patient nor apportioned to the 
veteran’s dependent or dependents may be ordered held in 
the Treasury to the credit of such beneficiary. All funds so 
held shall be disbursed under the order and in the discretion 
of the Secretary for the benefit of such beneficiary or the 
beneficiary’s dependents. Any balance remaining in such 
fund to the credit of any beneficiary may be paid to the 
beneficiary if the beneficiary recovers and is found com-
petent, or if a minor, attains majority, or otherwise to the 
beneficiary’s fiduciary, or, in the event of the beneficiary’s 
death, to the beneficiary’s personal representative, except as 
otherwise provided by law; however, payment will not be 
made to the beneficiary’s personal representative if, under 
the law of the beneficiary’s last legal residence, the bene-
ficiary’s estate would escheat to the State. In the event of 
the death of a mentally incompetent or insane veteran, all 
gratuitous benefits under laws administered by the Sec-
retary deposited before or after August 7, 1959, in the per-
sonal funds of patient’s trust fund on account of such vet-
eran shall not be paid to the personal representative of such 
veteran, but shall be paid to the following persons living 
at the time of settlement, and in the order named: The sur-
viving spouse, the children (without regard to age or mar-
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ital status) in equal parts, and the dependent parents of 
such veteran, in equal parts. If any balance remains, such 
balance shall be deposited to the credit of the applicable cur-
rent appropriation; except that there may be paid only so 
much of such balance as may be necessary to reimburse a 
person (other than a political subdivision of the United 
States) who bore the expenses of last sickness or burial of 
the veteran for such expenses. No payment shall be made 
under the two preceding sentences of this subsection unless 
claim therefor is filed with the Secretary within five years 
after the death of the veteran, except that, if any person 
so entitled under said two sentences is under legal disability 
at the time of death of the veteran, such five-year period 
of limitation shall run from the termination or removal of 
the legal disability. 
‘‘(e) ESCHEATMENT.—Any funds in the hands of a fi-
duciary appointed by a State court or the Secretary derived 
from benefits payable under laws administered by the Sec-
retary, which under the law of the State wherein the bene-
ficiary had last legal residence would escheat to the State, 
shall escheat to the United States and shall be returned by 
such fiduciary, or by the personal representative of the de-
ceased beneficiary, less legal expenses of any administration 
necessary to determine that an escheat is in order, to the 
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Department, and shall be deposited to the credit of the ap-
plicable revolving fund, trust fund, or appropriation. 
‘‘(f) ASSISTANCE.—The Secretary shall provide to a fi-
duciary appointed under section 5502 of this title materials 
and tools to assist the fiduciary in carrying out the respon-
sibilities of the fiduciary under this chapter, including— 
‘‘(1) handbooks, brochures, or other written mate-
rial that explain the responsibilities of a fiduciary 
under this chapter; 
‘‘(2) tools located on an Internet website, includ-
ing forms to submit to the Secretary required infor-
mation; and 
‘‘(3) assistance provided by telephone.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 55 of title 38, 
United States Code, is amended by inserting after the 
item relating to section 5502 the following new item: 
‘‘5502A. Supervision of fiduciaries.’’. 
(c) DEFINITION OF FIDUCIARY.—Section 5506 of title 
38, United States Code, is amended— 
(1) by striking ‘‘For purposes’’ and inserting 
‘‘(a) For purposes’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b)(1) For purposes of subsection (a), the term ‘per-
son’ includes any— 
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‘‘(A) State or local government agency whose 
mission is to carry out income maintenance, social 
service, or health care-related activities; 
‘‘(B) any State or local government agency with 
fiduciary responsibilities; or 
‘‘(C) any nonprofit social service agency that the 
Secretary determines— 
‘‘(i) regularly provides services as a fidu-
ciary concurrently to five or more individuals; 
and 
‘‘(ii) is not a creditor of any such indi-
vidual. 
‘‘(2) The Secretary shall maintain a list of State or 
local agencies and nonprofit social service agencies under 
paragraph (1) that are qualified to act as a fiduciary under 
this chapter. In maintaining such list, the Secretary may 
consult the lists maintained under section 807(h) of the So-
cial Security Act (42 U.S.C. 1007(h)).’’. 
(d) QUALIFICATIONS.—Section 5507 of title 38, United 
States Code, is amended to read as follows: 
‘‘§ 5507. Inquiry, investigations, and qualification of 
fiduciaries 
‘‘(a) INVESTIGATION.—Any certification of a person 
for payment of benefits of a beneficiary to that person as 
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such beneficiary’s fiduciary under section 5502 of this title 
shall be made on the basis of— 
‘‘(1) an inquiry or investigation by the Secretary 
of the fitness of that person to serve as fiduciary for 
that beneficiary to be conducted in advance of such 
certification and in accordance with subsection (b); 
‘‘(2) adequate evidence that certification of that 
person as fiduciary for that beneficiary is in the in-
terest of such beneficiary (as determined by the Sec-
retary under regulations); 
‘‘(3) adequate evidence that the person to serve as 
fiduciary protects the private information of a bene-
ficiary in accordance with subsection (d)(1); and 
‘‘(4) the furnishing of any bond that may be re-
quired by the Secretary in accordance with subsection 
(f). 
‘‘(b) ELEMENTS
OF INVESTIGATION.—(1) In con-
ducting an inquiry or investigation of a proposed fiduciary 
under subsection (a)(1), the Secretary shall conduct— 
‘‘(A) a face-to-face interview with the proposed 
fiduciary by not later than 30 days after the date on 
which such inquiry or investigation begins; and 
‘‘(B) a background check of the proposed fidu-
ciary to— 
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‘‘(i) in accordance with paragraph (2), de-
termine whether the proposed fiduciary has been 
convicted of a crime; and 
‘‘(ii) determine whether the proposed fidu-
ciary will serve the best interest of the bene-
ficiary, including by conducting a credit check of 
the proposed fiduciary and checking the records 
under paragraph (5). 
‘‘(2) The Secretary shall request information con-
cerning whether that person has been convicted of any of-
fense under Federal or State law. If that person has been 
convicted of such an offense, the Secretary may certify the 
person as a fiduciary only if the Secretary finds that the 
person is an appropriate person to act as fiduciary for the 
beneficiary concerned under the circumstances. 
‘‘(3) The Secretary shall conduct the background check 
described in paragraph (1)(B)— 
‘‘(A) each time a person is proposed to be a fidu-
ciary, regardless of whether the person is serving or 
has served as a fiduciary; and 
‘‘(B) at no expense to the beneficiary. 
‘‘(4) Each proposed fiduciary shall disclose to the Sec-
retary the number of beneficiaries that the fiduciary acts 
on behalf of. 
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‘‘(5) The Secretary shall maintain records of any per-
son who has— 
‘‘(A) previously served as a fiduciary; and 
‘‘(B) had such fiduciary status revoked by the 
Secretary. 
‘‘(6)(A) If a fiduciary appointed by the Secretary is 
convicted of a crime described in subparagraph (B), the 
Secretary shall notify the beneficiary of such conviction by 
not later than 14 days after the date on which the Secretary 
learns of such conviction. 
‘‘(B) A crime described in this subparagraph is a 
crime— 
‘‘(i) for which the fiduciary is convicted while 
serving as a fiduciary for any person; 
‘‘(ii) that is not included in a report submitted 
by the fiduciary under section 5509(a) of this title; 
and 
‘‘(iii) that the Secretary determines could affect 
the ability of the fiduciary to act on behalf of the ben-
eficiary. 
‘‘(c) INVESTIGATION OF CERTAIN PERSONS.—(1) In 
the case of a proposed fiduciary described in paragraph (2), 
the Secretary, in conducting an inquiry or investigation 
under subsection (a)(1), may carry out such inquiry or in-
vestigation on an expedited basis that may include giving 
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priority to conducting such inquiry or investigation. Any 
such inquiry or investigation carried out on such an expe-
dited basis shall be carried out under regulations prescribed 
for purposes of this section. 
‘‘(2) Paragraph (1) applies with respect to a proposed 
fiduciary who is— 
‘‘(A) the parent (natural, adopted, or stepparent) 
of a beneficiary who is a minor; 
‘‘(B) the spouse or parent of an incompetent ben-
eficiary; 
‘‘(C) a person who has been appointed a fidu-
ciary of the beneficiary by a court of competent juris-
diction; 
‘‘(D) being appointed to manage an estate where 
the annual amount of veterans benefits to be managed 
by the proposed fiduciary does not exceed $3,600, as 
adjusted pursuant to section 5312 of this title; or 
‘‘(E) a person who is authorized to act on behalf 
of the beneficiary under a durable power of attorney. 
‘‘(d) PROTECTION OF PRIVATE INFORMATION.—(1) A 
fiduciary shall take all reasonable precautions to— 
‘‘(A) protect the private information of a bene-
ficiary, including personally identifiable information; 
and 
‘‘(B) securely conducts financial transactions. 
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‘‘(2) A fiduciary shall notify the Secretary of any ac-
tion of the fiduciary that compromises or potentially com-
promises the private information of a beneficiary. 
‘‘(e) POTENTIAL MISUSE OF FUNDS.—(1) If the Sec-
retary has reason to believe that a fiduciary may be mis-
using all or part of the benefit of a beneficiary, the Sec-
retary shall— 
‘‘(A) conduct a thorough investigation to deter-
mine the veracity of such belief; and 
‘‘(B) if such veracity is established, transmit to 
the officials described in paragraph (2) a report of 
such investigation. 
‘‘(2) The officials described in this paragraph are the 
following: 
‘‘(A) The Attorney General. 
‘‘(B) Each head of a Federal department or 
agency that pays to a fiduciary or other person bene-
fits under any law administered by such department 
of agency for the use and benefit of a minor, incom-
petent, or other beneficiary. 
‘‘(f) BOND.—In determining whether a proposed fidu-
ciary is required to furnish a bond under subsection (a)(4), 
the Secretary shall consider— 
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‘‘(1) the existence of any familial or other per-
sonal relationship between the proposed fiduciary and 
the beneficiary; and 
‘‘(2) the care the proposed fiduciary has taken to 
protect the interests of the beneficiary. 
‘‘(g) LIST OF FIDUCIARIES.—Each regional office of 
the Veterans Benefits Administration shall maintain a list 
of the following: 
‘‘(1) The name and contact information of each 
fiduciary, including address, telephone number, and 
email address. 
‘‘(2) With respect to each fiduciary described in 
paragraph (1)— 
‘‘(A) the date of the most recent background 
check and credit check performed by the Sec-
retary under this section; 
‘‘(B) the date that any bond was paid 
under this section; 
‘‘(C) the name, address, and telephone num-
ber of each beneficiary the fiduciary acts on be-
half of; and 
‘‘(D) the amount that the fiduciary controls 
with respect to each beneficiary described in sub-
paragraph (C).’’. 
(e) ANNUAL RECEIPT OF PAYMENTS.— 
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(1) IN
GENERAL.—Section 5509 of title 38, 
United States Code, is amended— 
(A) in subsection (a)— 
(i) by striking ‘‘may require a fidu-
ciary to file a’’ and inserting ‘‘shall require 
a fiduciary to file an annual’’; and 
(ii) by adding at the end the following 
new sentence: ‘‘The Secretary shall transmit 
such annual report or accounting to the 
beneficiary and any legal guardian of such 
beneficiary.’’; 
(B) by adding at the end the following new 
subsections: 
‘‘(c) MATTERS INCLUDED.—Except as provided by 
subsection (f), an annual report or accounting under sub-
section (a) shall include the following: 
‘‘(1) For each beneficiary that a fiduciary acts 
on behalf of— 
‘‘(A) the amount of the benefits of the bene-
ficiary provided under any law administered by 
the Secretary accrued during the year, the 
amount spent, and the amount remaining; and 
‘‘(B) if the fiduciary serves the beneficiary 
with respect to benefits not administered by the 
Secretary, an accounting of all sources of benefits 
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or other income the fiduciary oversees for the 
beneficiary. 
‘‘(2) A list of events that occurred during the 
year covered by the report that could affect the ability 
of the fiduciary to act on behalf of the beneficiary, in-
cluding— 
‘‘(A) the fiduciary being convicted of any 
crime; 
‘‘(B) the fiduciary declaring bankruptcy; 
and 
‘‘(C) any judgments entered against the fi-
duciary. 
‘‘(d) RANDOM AUDITS.—The Secretary shall annually 
conduct random audits of fiduciaries who receive a commis-
sion pursuant to subsection 5502A(a)(1) of this title. 
‘‘(e) STATUS OF FIDUCIARY.—If a fiduciary includes 
in the annual report events described in subsection (c)(2), 
the Secretary may take appropriate action to adjust the sta-
tus of the fiduciary as the Secretary determines appro-
priate, including by revoking the fiduciary status of the fi-
duciary. 
‘‘(f) CAREGIVERS
AND
CERTAIN
OTHER
FIDU-
CIARIES.—(1)(A) In carrying out this section, the Secretary 
shall ensure that a caregiver fiduciary is required only to 
file an annual report or accounting under subsection (a) 
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with respect to the amount of the benefits of the beneficiary 
provided under any law administered by the Secretary— 
‘‘(i) spent on— 
‘‘(I) food and housing for the beneficiary; 
and 
‘‘(II) clothing, health-related expenses, recre-
ation, and other personal items for the bene-
ficiary; and 
‘‘(ii) saved for the beneficiary. 
‘‘(B) The Secretary shall coordinate with the Under 
Secretary for Benefits and the Under Secretary for Health 
to— 
‘‘(i) minimize the frequency with which employ-
ees of the Department visit the home of a caregiver fi-
duciary and beneficiary; and 
‘‘(ii) limit the extent of supervision by such 
Under Secretaries with respect to such a fiduciary 
and beneficiary. 
‘‘(C) In this paragraph, the term ‘caregiver fiduciary’ 
means a fiduciary who— 
‘‘(i) in addition to acting as a fiduciary for a 
beneficiary, is approved by the Secretary to be a pro-
vider of personal care services for the beneficiary 
under paragraph (3)(A)(i) of section 1720G(a) of this 
title; 
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‘‘(ii) in carrying out such care services to such 
beneficiary, has undergone not less than four home 
visits under paragraph (9)(A) of such section; and 
‘‘(iii) has not been required by the Secretary to 
take corrective action pursuant to paragraph (9)(C) 
of such section. 
‘‘(2) In carrying out this section, the Secretary may 
adjust the matters required under an annual report or ac-
counting under subsection (a) with respect to a fiduciary 
whom the Secretary determines to have effectively protected 
the interests of the beneficiary over a sustained period.’’; 
and 
(C) by striking the section heading and in-
serting the following: ‘‘Annual reports and 
accountings of fiduciaries’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 55 of title 38, 
United States Code, is amended by striking the item 
relating to section 5509 and inserting the following 
new item: 
‘‘5509. Annual reports and accountings of fiduciaries.’’. 
(f) REPAYMENT
OF MISUSED BENEFITS.—Section 
6107(a)(2)(C) of title 38, United States Code, is amended 
by inserting before the period the following: ‘‘, including 
by the Secretary not acting in accordance with section 5507 
of this title’’. 
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(g) ANNUAL REPORTS.—Section 5510 of title 38, 
United States Code, is amended by striking ‘‘The Secretary 
shall include in the Annual Benefits Report of the Veterans 
Benefits Administration or the Secretary’s Annual Per-
formance and Accountability Report’’ and inserting ‘‘Not 
later than July 1 of each year, the Secretary shall submit 
to the Committees on Veterans’ Affairs of the House of Rep-
resentatives and the Senate a separate report containing’’. 
(h) REPORT.—Not later than two years after the date 
of the enactment of this Act, the Secretary of Veterans Af-
fairs shall submit to the Committee on Veterans’ Affairs of 
the Senate and the Committee on Veterans’ Affairs of the 
House of Representatives a comprehensive report on the im-
plementation of the amendments made by this Act, includ-
ing— 
(1) detailed information on the establishment of 
new policies and procedures pursuant to such amend-
ments and training provided on such policies and 
procedures; and 
(2) a discussion of whether the Secretary should 
provide fiduciaries with standardized financial soft-
ware to simplify reporting requirements. 
(i) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date that is one year after 
the date of the enactment of this Act. 
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SEC. 10. BOARD OF VETERANS’ APPEALS VIDEO HEARINGS. 
Section 7107 of title 38, United States Code, is amend-
ed— 
(1) in subsection (d), by amending paragraph 
(1) to read as follows: 
‘‘(1)(A) Upon request for a hearing, the Board shall 
determine, for purposes of scheduling the hearing for the 
earliest possible date, whether a hearing before the Board 
will be held at its principal location or at a facility of the 
Department or other appropriate Federal facility located 
within the area served by a regional office of the Depart-
ment. The Board shall also determine whether to provide 
a hearing through the use of the facilities and equipment 
described in subsection (e)(1) or by the appellant personally 
appearing before a Board member or panel. 
‘‘(B) The Board shall notify the appellant of the deter-
minations of the location and type of hearing made under 
subparagraph (A). Upon notification, the appellant may re-
quest a different location or type of hearing as described 
in such subparagraph. If so requested, the Board shall grant 
such request and ensure that the hearing is scheduled at 
the earliest possible date without any undue delay or other 
prejudice to the appellant.’’; and 
(2) in subsection (e), by amending paragraph (2) 
to read as follows: 
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‘‘(2) Any hearing provided through the use of the fa-
cilities and equipment described in paragraph (1) shall be 
conducted in the same manner as, and shall be considered 
the equivalent of, a personal hearing.’’. 
SEC. 11. IMPROVEMENTS TO AUTHORITY FOR PERFORM-
ANCE OF MEDICAL DISABILITIES EXAMINA-
TIONS BY CONTRACT PHYSICIANS. 
(a) EXTENSION OF TEMPORARY AUTHORITY.—Sub-
section (c) of section 704 of the Veterans Benefits Act of 
2003 (38 U.S.C. 5101 note) is amended by striking ‘‘Decem-
ber 31, 2015’’ and inserting ‘‘December 31, 2017’’. 
(b) LICENSURE OF CONTRACT PHYSICIANS.— 
(1) TEMPORARY AUTHORITY.—Such section 704 
is further amended— 
(A) by redesignating subsection (d) as sub-
section (e); and 
(B) by inserting after subsection (c) the fol-
lowing new subsection (d): 
‘‘(d) LICENSURE OF CONTRACT PHYSICIANS.— 
‘‘(1) IN GENERAL.—Notwithstanding any law re-
garding the licensure of physicians, a physician de-
scribed in paragraph (2) may conduct an examina-
tion pursuant to a contract entered into under sub-
section (b) at any location in any State, the District 
of Columbia, or a Commonwealth, territory, or posses-
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sion of the United States, so long as the examination 
is within the scope of the authorized duties under 
such contract. 
‘‘(2) PHYSICIAN DESCRIBED.—A physician de-
scribed in this paragraph is a physician who— 
‘‘(A) has a current unrestricted license to 
practice the health care profession of the physi-
cian; 
‘‘(B) is not barred from practicing such 
health care profession in any State, the District 
of Columbia, or a Commonwealth, territory, or 
possession of the United States; and 
‘‘(C) is performing authorized duties for the 
Department of Veterans Affairs pursuant to a 
contract entered into under subsection (b).’’. 
(2) PILOT PROGRAM.—Section 504 of the Vet-
erans’ Benefits Improvement Act of 1996 (38 U.S.C. 
5101 note) is amended— 
(A) by redesignating subsections (c) and (d) 
as subsections (d) and (e), respectively; and 
(B) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) LICENSURE OF CONTRACT PHYSICIANS.— 
‘‘(1) IN GENERAL.—Notwithstanding any law re-
garding the licensure of physicians, a physician de-
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scribed in paragraph (2) may conduct an examina-
tion pursuant to a contract entered into under sub-
section (a) at any location in any State, the District 
of Columbia, or a Commonwealth, territory, or posses-
sion of the United States, so long as the examination 
is within the scope of the authorized duties under 
such contract. 
‘‘(2) PHYSICIAN DESCRIBED.—A physician de-
scribed in this paragraph is a physician who— 
‘‘(A) has a current unrestricted license to 
practice the health care profession of the physi-
cian; 
‘‘(B) is not barred from practicing such 
health care profession in any State, the District 
of Columbia, or a Commonwealth, territory, or 
possession of the United States; and 
‘‘(C) is performing authorized duties for the 
Department of Veterans Affairs pursuant to a 
contract entered into under subsection (a).’’. 
SEC. 12. PILOT PROGRAM ON FULLY DEVELOPED APPEALS. 
(a) IN GENERAL.—The Secretary of Veterans Affairs 
shall carry out a pilot program to provide the option of 
an alternative appeals process that shall more quickly deter-
mine such appeals in accordance with this section. 
(b) ELECTION.— 
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(1) FILING.—In accordance with paragraph (2), 
a claimant may elect to file a fully developed appeal 
under the pilot program under subsection (a) by fil-
ing with the Secretary the following: 
(A) The notice of disagreement under chap-
ter 71 of title 38, United States Code, along with 
the written election of the claimant to have the 
appeal determined under the pilot program. 
(B) All evidence that the claimant believes 
is needed for the appeal as of the date of the fil-
ing. 
(C) A statement of the argument in support 
of the claim, if any. 
(2) TIMING.—A claimant shall make an election 
under paragraph (1) as part of the notice of disagree-
ment filed by the claimant in accordance with para-
graph (1)(A). 
(3) REVERSION.— 
(A) At any time, a claimant who makes an 
election under paragraph (1) may elect to revert 
to the standard appeals process. Such a reversion 
shall be final. 
(B) A claimant described in subparagraph 
(A), or a claimant who makes an election under 
paragraph (1) but is later determined to be ineli-
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gible for the pilot program under subsection (a), 
shall revert to the standard appeals process with-
out any penalty to the claimant other than the 
loss of the docket number associated with the 
fully developed appeal. 
(4) OUTREACH.—In providing claimants with 
notices of the determination of a claim during the pe-
riod in which the pilot program under subsection (a) 
is carried out, the Secretary shall conduct outreach as 
follows: 
(A) The Secretary shall provide to the 
claimant (and to the representative of record of 
the claimant, if any) information regarding— 
(i) the pilot program, including the 
advantages and disadvantages of the pro-
gram; 
(ii) how to make an election under 
paragraph (1); 
(iii) the limitation on the use of new 
evidence described in paragraph (3) of sub-
section (c) and the development of informa-
tion under paragraph (4) of such sub-
section; and 
(iv) the ability of the claimant to seek 
advice and education regarding such process 
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from veterans service organizations, attor-
neys, and claims agents recognized under 
chapter 59 of title 38, United States Code. 
(B) The Secretary shall collaborate, partner 
with, and give weight to the advice of the three 
veterans service organizations with the most 
members to publish on the Internet website of the 
Department of Veterans Affairs an online tuto-
rial explaining the advantages and disadvan-
tages of the pilot program. 
(c) TREATMENT BY DEPARTMENT AND BOARD.— 
(1) PROCESS.—Upon the election of a claimant 
to file a fully developed appeal pursuant to subsection 
(b)(1), the Secretary shall— 
(A) not provide the claimant with a state-
ment of the case nor require the claimant to file 
a substantive appeal; and 
(B) transfer jurisdiction over the fully de-
veloped appeal directly to the Board of Veterans’ 
Appeals. 
(2) DOCKET.— 
(A) The Board of Veterans’ Appeals shall— 
(i) maintain fully developed appeals 
on a separate docket than standard appeals; 
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(ii) decide fully developed appeals in 
the order that the fully developed appeals 
are received on the fully developed appeal 
docket; 
(iii) except as provided by subpara-
graph (B), decide not more than one fully 
developed appeal for each four standard ap-
peals decided; and 
(iv) to the extent practicable, decide 
each fully developed appeal by the date that 
is one year following the date on which the 
claimant files the notice of disagreement. 
(B) Beginning one year after the date on 
which the pilot program under subsection (a) 
commences, the Board may adjust the number of 
standard appeals decided for each fully developed 
appeal under subparagraph (A)(iii) if the Board 
determines that such adjustment is fair for both 
standard appeals and fully developed appeals. 
(3) LIMITATION ON USE OF NEW EVIDENCE.— 
(A) Except as provided by subparagraphs 
(B) and (C)— 
(i) a claimant may not submit or 
identify to the Board of Veterans’ Appeals 
any new evidence relating to a fully devel-
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oped appeal after filing such appeal unless 
the claimant reverts to the standard appeals 
process pursuant to subsection (b)(3); and 
(ii) if a claimant submits or identifies 
any such new evidence, such submission or 
identification shall be deemed to be an elec-
tion to make such a reversion pursuant to 
subsection (b)(3). 
(B) Subparagraph (A) shall not apply to 
evidence developed pursuant to paragraphs (4) 
and (5). The Board shall consider such evidence 
in the first instance without consideration by the 
Veterans Benefits Administration. 
(C) The representative of record of a claim-
ant for appeals purposes, if any, shall be pro-
vided an opportunity to review the fully devel-
oped appeal of the claimant and submit any ad-
ditional arguments or evidence that the rep-
resentative determines necessary during a period 
specified by the Board for purposes of this sub-
paragraph. 
(4) PROHIBITION ON REMAND FOR ADDITIONAL 
DEVELOPMENT.—If the Board of Veterans’ Appeals 
determines that a fully developed appeal requires Fed-
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eral records, independent medical opinions, or new 
medical examinations, the Board shall— 
(A) in accordance with paragraph (5), take 
such actions as may be necessary to develop such 
records, opinions, or examinations in accordance 
with section 5103A of title 38, United States 
Code; 
(B) retain jurisdiction of the fully developed 
appeal without requiring a determination by the 
Veterans Benefits Administration based on such 
records, opinions, or examinations; 
(C) ensure the claimant, and the representa-
tive of record of a claimant, if any, receives a 
copy of such records, opinions, or examinations; 
and 
(D) provide the claimant a period of 90 
days after the date of mailing such records, opin-
ions, or examinations during which the claimant 
may provide the Board any additional evidence 
without requiring the claimant to make a rever-
sion pursuant to subsection (b)(3). 
(5) DEVELOPMENT UNIT.— 
(A) The Board of Veterans’ Appeals shall es-
tablish an office to develop Federal records, inde-
pendent medical opinions, and new medical ex-
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aminations pursuant to paragraph (4)(A) that 
the Board determines necessary to decide a fully 
developed appeal. 
(B) The Secretary shall— 
(i) ensure that the Veterans Benefits 
Administration cooperates with the Board 
of Veterans’ Appeals in carrying out sub-
paragraph (A); and 
(ii) transfer employees of the Veterans 
Benefits Administration who, prior to the 
enactment of this Act, were responsible for 
processing claims remanded by the Board of 
Veterans’ Appeals to positions within the of-
fice of the Board established under subpara-
graph (A) in a number the Secretary deter-
mines sufficient to carry out such subpara-
graph. 
(6) HEARINGS.—Notwithstanding section 7107 
of title 38, United States Code, the Secretary may not 
provide hearings with respect to fully developed ap-
peals. If a claimant requests to hold a hearing pursu-
ant to such section 7107, such request shall be deemed 
to be an election to revert to the standard appeals 
process pursuant to subsection (b)(3). 
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(d) DURATION; APPLICATION.—The Secretary shall 
carry out the pilot program under subsection (a) for a five- 
year period beginning one year after the date of the enact-
ment of this Act. This section shall apply only to fully devel-
oped appeals that are filed during such period. 
(e) REPORTS.—During each year in which the pilot 
program under subsection (a) is carried out, the Secretary 
shall submit to the Committees on Veterans’ Affairs of the 
House of Representatives and the Senate a report on the 
pilot program. The first such report shall be submitted by 
not later than 180 days after the date on which the pilot 
program commences. Each report shall include the fol-
lowing: 
(1) For the period covered by the report— 
(A) the number of claimants who filed a 
fully developed appeal under the pilot program; 
(B) the average processing time for each 
such appeal, measured by each phase of the ap-
peal, and, if the processing time for appeals ex-
ceed one year, the reasons for such processing 
time; 
(C) a summary of reasons for which the de-
velopment of evidence was required under sub-
section (c)(5); 
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(D) the number of issues decided, listed by 
the disposition of the issue; 
(E) of the number identified in subpara-
graph (D), the number of issues for which evi-
dence was not so developed, listed by the disposi-
tion of the issue; 
(F) of the number of fully developed appeals 
decided by the Board of Veterans’ Appeals, the 
number of cases from each agency of original ju-
risdiction, listed by the disposition of the issue; 
(G) the number of fully developed appeals 
appealed to the Court of Appeals for Veterans 
Claims, listed by the disposition of the case; 
(H) the number of reversions made under 
subsection (b)(3); and 
(I) any reasons for why a claimant was de-
termined to be ineligible to participate in the 
pilot program. 
(2) A review, made in conjunction with veterans 
service organizations, of the efforts of the Secretary to 
provide clear rating decisions and improve disability 
rating notification letters, including with respect to— 
(A) the opinions of veterans service organi-
zations regarding such efforts; and 
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(B) how the pilot program improves such 
efforts. 
(3) A recommendation for any changes to im-
prove the pilot program. 
(4) An assessment of the feasibility and advis-
ability of expanding the pilot program. 
(f) REGULATIONS.—Not later than one day after the 
date of the enactment of this Act, the Secretary shall publish 
interim guidance on the pilot program under subsection 
(a). Not later than 90 days after such date of enactment, 
the Secretary shall prescribe regulations to carry out such 
pilot program. 
(g) DEFINITIONS.—In this section: 
(1) The term ‘‘claimant’’ has the meaning given 
that term in section 5100 of title 38, United States 
Code. 
(2) The term ‘‘compensation’’ has the meaning 
given that term in section 101 of title 38, United 
States Code. 
(3) The term ‘‘fully developed appeal’’ means an 
appeal of a claim for disability compensation that 
is— 
(A) filed by a claimant in accordance with 
subsection (b)(1); and 
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