To amend title 38, United States Code, to improve the efficiency of processing certain claims for disability compensation by veterans.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans' Disability Claims 
Efficiency Act of 2010''.

SEC. 2. IMPROVEMENT OF DISABILITY CLAIMS PROCESSING.

    (a) Establishment of Fast Track Interim Disability Ratings.--
Section 1157 of title 38, United States Code, is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
    ``(a) In General.--The Secretary''; and
            (2) by adding at the end the following new subsection:
    ``(b) Fast Track Interim Disability Ratings.--(1) In the case of a 
veteran who submits to the Secretary a claim for compensation under 
this chapter for more than one condition and the Secretary determines 
that a disability rating can be assigned without further development 
for one or more conditions but not all conditions in the claim, the 
Secretary shall--
                    ``(A) expeditiously review the claim in accordance 
                with section 5103B of this title;
                    ``(B) assign an interim disability rating for each 
                condition that the Secretary determines could be 
                assigned without further development (except as 
                provided in paragraph (3)(A)); and
                    ``(C) continue development of the remaining 
                conditions.
    ``(2) If the Secretary is able to assign a disability rating for a 
condition described in paragraph (1)(C) with respect to a claim, the 
Secretary shall assign such rating and combine such rating with each 
interim rating previously assigned under paragraph (1)(B) with respect 
to that claim.
    ``(3)(A) With respect to an interim disability rating assigned 
under paragraph (1)(B) for a condition that is rated less than the 
maximum rate, the Secretary shall continue development of such 
condition.
    ``(B) Except as provided in subparagraph (C), an interim disability 
rating assigned under paragraph (1)(B) for a condition shall remain in 
effect unless the Secretary later assigns an increased rating for such 
condition.
    ``(C) Under regulations prescribed by the Secretary, subparagraph 
(B) shall not apply to an interim disability rating assigned under 
paragraph (1)(B) for a condition if--
            ``(i) such rating was based on fraud; or
            ``(ii) such condition improves.''.
    (b) Establishment of Fast Track Claim Review Process.--
            (1) In general.--Subchapter I of chapter 51 of title 38, 
        United States Code, is amended by inserting after section 5103A 
        the following new section:
``Sec. 5103B. Expedited review of initial claims for disability 
              compensation
    ``(a) Process Required.--The Secretary shall establish a process 
for the rapid identification of initial claims for disability 
compensation that should, in the adjudication of such claims, receive 
priority in the order of review.
    ``(b) Review of Initial Claims.--As part of the process required by 
subsection (a), the Secretary shall carry out a preliminary review of 
all initial claims for disability compensation submitted to the 
Secretary in order to identify whether--
            ``(1) the claims have the potential of being adjudicated 
        quickly, including claims where an interim disability rating 
        could be assigned under section 1157(b)(1)(B) of this title;
            ``(2) the claims qualify for priority treatment under 
        paragraph (2) of subsection (c); and
            ``(3) a temporary disability rating could be assigned with 
        respect to the claims under section 1156 of this title.
    ``(c) Priority in Adjudication of Initial Claims.--(1) As part of 
the process required by subsection (a) and except as provided in 
paragraph (2), the Secretary shall, in the adjudication of initial 
claims for disability compensation submitted to the Secretary, give 
priority in the order of review of such claims to claims identified 
under subsection (b)(1) as having the potential of being adjudicated 
quickly.
    ``(2) Under regulations prescribed for such purpose, the Secretary 
may provide priority in the order of review of initial claims for 
disability compensation based on the effect such priority would have on 
a claimant.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 51 of such title is amended by inserting 
        after the item relating to section 5103A, the following new 
        item:

``5103B. Expedited review of initial claims for disability 
                            compensation''.
    (c) Reports.--
            (1) First interim report.--Not later than one year after 
        the date of the enactment of this Act, the Secretary of 
        Veterans Affairs shall submit to the appropriate congressional 
        committees a report on--
                    (A) the implementation of sections 1157(b) and 
                5103B of title 38, United States Code, as added by this 
                section;
                    (B) the workflow of the employees of the Department 
                of Veterans Affairs who review and process claims for 
                disability compensation, including an analysis of--
                            (i) the efficiency of such employees; and
                            (ii) whether such claims are directed to 
                        such employees based on the complexity of the 
                        claim in relation to the experience and skill 
                        of the employee; and
                    (C) pilot programs carried out by the Secretary 
                relating to the review and process of claims for 
                disability compensation, including--
                            (i) the status of such pilot programs;
                            (ii) an evaluation of any best practices 
                        learned from such pilot programs; and
                            (iii) whether such practices should be 
                        expanded.
            (2) Second interim report.--Not later than 18 months after 
        the date of the enactment of this Act, the Secretary shall 
        submit to the appropriate congressional committees an update to 
        the report submitted under paragraph (1).
            (3) Final report.--Not later than two years after the date 
        of the enactment of this Act, the Secretary shall submit to the 
        appropriate congressional committees an update to the report 
        submitted under paragraph (2).
            (4) Appropriate congressional committees.--In this 
        subsection, the term ``appropriate congressional committees'' 
        means the Committee on Veterans' Affairs of the House of 
        Representatives and the Committee on Veterans' Affairs of the 
        Senate.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, and shall apply with 
respect to claims for disability compensation filed on or after the 
date that is two years after the date of the enactment of this Act.

Summary: Veterans' Disability Claims Efficiency Act of 2010 - Allows the Secretary of Veterans Affairs (VA), in the case of a disability claim with multiple conditions, to assign an interim disability rating for the condition(s) that can be assigned without further development and to continue development of the remaining condition(s). Requires an interim disability rating to remain in effect unless the Secretary later assigns an increased rating for such condition. Prohibits the continuation of such rating if the rating was based on fraud or the condition improves.

Directs the Secretary to establish a process for the rapid identification of initial claims for disability compensation that should, in adjudication, receive priority in the order of review. Requires the Secretary to identify whether claims have the potential of being adjudicated quickly, the claims qualify for priority treatment, and a temporary disability rating could be assigned for such claims. Authorizes the Secretary to provide priority based on the effect such priority would have on a claimant.