Department of Veterans Affairs Act
PL 100-527 (H.R.3471), enacted 10/25/1988

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PUBLIC LAW 100-527—OCT. 25, 1988 
102 STAT. 2635 
Public Law 100-527 
100th Congress 
An Act 
To establish the Veterans' Administration as an executive department, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Department of Veterans Affairs 
Act". 
SEC. 2. ESTABLISHMENT OF VETERANS' ADMINISTRATION AS AN EXECU-
TIVE DEPARTMENT. 
The Veterans' Administration is hereby redesignated as the 
Department of Veterans Affairs and shall be an executive depart-
ment in the executive branch of the Government. There shall be at 
the head of the Department a Secretary of Veterans Affairs, who 
shall be appointed by the President, by and with the advice and 
consent of the Senate. The Department shall be administered under 
the supervision and direction of the Secretary. 
SEC. 3. PRINCIPAL OFFICERS. 
(a) DEPUTY SECRETARY.—There shall be in the Department of 
Veterans Affairs a Deputy Secretary of Veterans Affairs, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate. The Deputy Secretary shall perform such functions as 
the Secretary shall prescribe. 
(b) CHIEF MEDICAL DIRECTOR.—(1) There shall be in the Depart-
ment a Chief Medical Director, who shall be a doctor of medicine 
and shall, subject to subsection (f), be appointed by the President, by 
and with the advice and consent of the Senate, without regard to 
political affiliation or activity and solely on the basis of integrity 
and demonstrated ability in the medical profession, in health-care 
administration and policy formulation, and in health-care fiscal 
management, and on the basis of substantial experience in connec-
tion with the programs of the Veterans Health Services and Re-
search Administration or programs of similar content and scope. 
The Chief Medical Director shall be the head of, and shall be 
directly responsible to the Secretary for the operations of, the 
Veterans Health Services and Research Administration. The Chief 
Medical Director shall be appointed for a period of four years, with 
reappointment permissible for successive like periods. If the Presi-
dent removes the Chief Medical Director prior to the completion of 
the term for which the Chief Medical Director is appointed, the 
President shall communicate the reasons for such removal to both 
Houses of Congress. 
(2XA) Whenever a vacancy in the position of Chief Medical Direc-
tor occurs or is anticipated, the Secretary of Veterans Affairs shall 
establish a commission to recommend individuals to the President 
for appointment to the position. 
Oct. 25, 1988 
[H.R. 3471] 
Department of 
Veterans Affairs 
Act. 
Government 
organization and 
employees. 
38 u s e 201 note. 
38 u s e 201 note. 
President of U.S. 
38 u s e 201 note. 
President of U.S. 
President of U.S. 
102 STAT. 2636 
PUBLIC LAW 100-527—OCT. 25, 1988 
(B) A commission established under this paragraph shall be com-
posed of the following members appointed by the Secretary: 
(i) Three persons representing clinical care and medical re-
search and education activities affected by the Veterans Health 
Services and Research Administration. 
(ii) Two persons representing veterans served by the Veterans 
Health Services and Research Administration. 
(iii) Two persons who have experience in the management of 
veterans health services and research programs, or programs of 
similar content and scope. 
(iv) The Deputy Secretary of Veterans Affairs. 
(v) The Chairman of the Special Medical Advisory Group 
established under section 4112 of title 38, United States Code. 
(vi) One person who has held the position of Chief Medical 
Director, if the Secretary determines that it is desirable for such 
person to be a member of the Commission. 
(C) A commission established under this paragraph shall rec-
ommend at least three individuals for appointment to the position of 
Chief Medical Director. Such commission shall submit all rec-
ommendations to the Secretary. The Secretary shall forward such 
recommendations to the President with any comments 
the 
Secretary considers appropriate. Thereafter, the President may 
request such commission to recommend additional individuals for 
appointment. 
(D) The Assistant Secretary or Deputy Assistant Secretary of 
Veterans Affairs who performs personnel management and labor 
relations functions shall serve as the executive secretary of a 
commission established under this paragraph. 
President of U.S. 
(c) CHIEF BENEFITS DIRECTOR.—(1) There shall be in the Depart-
ment a Chief Benefits Director, who shall be appointed by the 
President, by and with the advice and consent of the Senate, without 
regard to political affiliation or activity and solely on the basis of 
integrity and demonstrated ability in fiscal management and the 
administration of programs within the Veterans Benefits Adminis-
tration or programs of similar content and scope. The Chief Benefits 
Director shall be the head of, and shall be directly responsible to the 
Secretary for the operations of, the Veterans Benefits Administra-
tion. The Chief Benefits Director shall be appointed for a period of 
four years, with reappointment permissible for successive like 
periods. If the President removes the Chief Benefits Director prior to 
the completion of the term for which the Chief Benefits Director is 
appointed, the President shall communicate the reasons for such 
removal to both Houses of Congress. 
(2XA) Whenever a vacancy in the position of Chief Benefits Direc-
tor occurs or is anticipated, the Secretary of Veterans Affairs shall 
establish a commission to recommend individuals to the President 
for appointment to the position. 
(B) A commission established under this paragraph shall be com-
posed of the following members appointed by the Secretary: 
(i) Three persons representing education and training, real 
estate, mortgage finance, and related industries, and survivor 
benefits activities affected by the Veterans Benefits Adminis-
tration. 
(ii) Two persons representing veterans served by the Veterans 
Benefits Administration. 
PUBLIC LAW 100-527—OCT. 25, 1988 
102 STAT. 2637 
(iii) Two persons who have experience in the management of 
veterans benefits programs or programs of similar content and 
scope. 
(iv) The Deputy Secretary of Veterans Affairs. 
(v) The Chairman of the Veterans' Advisory Committee on 
Education formed under section 1792 of title 38, United States 
Code. 
(vi) One person who has held the position of Chief Benefits 
Director, if the Secretary determines that it is desirable for such 
person to be a member of the Commission. 
(C) A commission established under this paragraph shall rec-
ommend at least three individuals for appointment to the position of 
Chief Benefits Director. Such commission shall submit all rec-
ommendations to the Secretary, The Secretary shall forward such 
recommendations to the President with any comments the 
Secretary considers appropriate. Thereafter, the President may 
request such commission to recommend additional individuals for 
appointment. 
(D) The Assistant Secretary or Deputy Assistant Secretary of 
Veterans Affairs who performs personnel management and labor 
relations functions shall serve as the executive secretary of a 
commission established under this paragraph. 
(d) DIRECTOR OF NATIONAL CEMETERY SYSTEM.—There shall be in 
the Department of Veterans Affairs a Director of the National 
Cemetery System, who— 
(1) shall be appointed by the President, by and with the advice 
President of U.S. 
and consent of the Senate; 
(2) shall serve as the head of the National Cemetery System 
provided for in section 1000 of title 38, United States Code; and 
(3) shall perform such functions as may be assigned by the 
Secretary. 
(e) CONTINUATION OF SERVICE OF ADMINISTRATOR AND DEPUTY 
ADMINISTRATOR.—The individuals serving as Administrator and 
Deputy Administrator of Veterans' Affairs on the effective date of 
this Act may act as Secretary and Deputy Secretary of the Depart-
ment, respectively, until the date an individual is appointed under 
this Act to the office concerned, or until the end of the 120-day 
period provided for in section 3348 of title 5, United States Code 
(relating to limitations on the period of time a vacancy may be filled 
temporarily), whichever is earlier. 
(f) CONTINUATION OF SERVICE OF CHIEF MEDICAL DIRECTOR.—The 
individual serving as Chief Medical Director on the effective date of 
this Act may continue to serve in that capacity until the expiration 
of the term prescribed by section 41030bXl) of title 38, United States 
Code, unless removed by the Secretary of Veterans Affairs for cause 
in accordance with section 41O30t)X3) of such title. 
(g) CONTINUATION OF SERVICE OF CHIEF BENEFITS DIRECTOR.—The 
individual serving as Chief Benefits Director on the effective date of 
this Act may continue to serve in that capacity until an individual is 
appointed under this Act to that office. 
(h) CONTINUATION OF SERVICE OF DIRECTOR, NATIONAL CEMETERY 
SYSTEM.—The individual serving as Director, National Cemetery 
Sjrstem on the effective date of this Act may act as the Director of 
the National Cemetery System until an individual is appointed 
under this Act to that office. 
102 STAT. 2638 
PUBLIC LAW 100-527—OCT. 25, 1988 
38 u s e 201 note. 
SEC. 4. ASSISTANT SECRETARIES. 
President of U.S. 
(a) EsTABusHMENT OF POSITIONS.—There shall be in the Depart-
ment of Veterans Affairs not more than 6 Assistant Secretaries, 
each of whom shall be appointed by the President, by and with the 
advice and consent of the Senate. 
(b) FUNCTIONS OF ASSISTANT SECRETARIES.—The Secretary shall 
assign to Assistant Secretaries such functions as the Secretary 
considers appropriate, including the following functions: 
(1) Budgetary and financial functions. 
(2) Personnel management and labor relations functions. 
(3) Planning, studies, and evaluations. 
(4) Management, productivity, and logistic support functions. 
(5) Information management functions as required by section 
3506 of title 44, United States Code. 
(6) Capital facilities and real property program functions. 
(7) Equal opportunity functions. 
(8) Functions regarding the investigation and adjudication 
of complaints of employment discrimination within 
the 
Department. 
(9) Functions regarding intergovernmental, public, and 
consumer information and affairs. 
(10) Procurement functions. 
(c) CHIEF FINANCIAL OFFICER.—(1) The Secretary shall designate 
the Assistant Secretary whose functions include budgetary and 
^ 
financial functions as the Chief Financial Officer of the Department. 
(2) The Chief Financial Officer shall— 
(A) advise the Secretary on financial management of the 
Department; 
(B) develop and maintain a financial management system for 
the Department (including accounting and related transaction 
systems, internal control systems, and financial reporting sys-
tems) which provides for— 
(i) development and maintenance of consistent, compat-
ible, and useful data; 
(ii) development and reporting of cost information; and 
(iii) integration of accounting and budgeting information; 
(C) supervise and coordinate all financial management system 
activities and operations of the Department; and 
(D) direct and manage financial management activities and 
operations of the Department, including— 
(i) the development of financial management budgets; 
and 
(ii) the approval and mansigement of financial manage-
ment system design or enhancement projects. 
(d) CHIEF INFORMATION RESOURCES OFFICER.—(1) The Secretary 
shall designate the Assistant Secretary whose functions include 
information memagement functions as required by section 3506 of 
title 44, United States Code, as the Chief Information Resources 
Officer of the Department. 
(2) The Chief Information Resources Officer shall— 
(A) advise the Secretary on information management activi-
ties of the Department as required by section 3506 of title 44, 
United States Code; 
(B) develop and maintain an information resources manage-
ment system for the Department which provides for— 
PUBLIC LAW 100-527—OCT. 25, 1988 
102 STAT. 2639 
(i) the conduct of and accountability for any acquisitions 
made pursuant to a delegation of authority under section 
759 of title 40, United States Code; 
(ii) the implementation of all applicable government-wide 
and Department information policies, principles, standards, 
and guidelines with respect to information collection, 
paperwork reduction, privacy and security of records, shar-
ing and dissemination of information, acquisition and use of 
information technology, and other information resource 
management functions; 
(iii) the periodic evaluation of and, as needed, the plan-
ning and implementation of improvements in the accuracy, 
completeness, and reliability of data and records contained 
within Department information systems; and 
(iv) the development and annual revision of a five-year 
plan for meeting the Department's information technology 
needs; and 
(C) report to the Secretary as required by section 3506 of title 
44, United States Code. 
(e) DESIGNATION OF FUNCTIONS PRIOR TO CONFIRMATION.—When-
ever the President submits the name of an individual to the Senate 
for confirmation as Assistant Secretary under this section, the 
President shall state the particular functions of the Department 
such individual will exercise upon taking office. 
(f) CONTINUING PERFORMANCE OF ASSISTANT SECRETARY FUNCTIONS 
PENDING CONFIRMATION.—An individual who, on the effective date 
of this Act, is performing any of the functions required by this 
section to be performed by an Assistant Secretary of the Depart-
ment may continue to perform such functions until such functions 
are assigned to an individual appointed under this Act as an Assist-
ant Secretary of the Department. 
SEC. 5. DEPUTY ASSISTANT SECRETARIES. 
(a) EsTABusHMENT OF POSITIONS.—There shall be in the Depart-
ment of Veterans Affairs such number of Deputy Assistant Secre-
taries, not exceeding 18, as the Secretary may determine. 
Ot)) APPOINTMENTS.—Each Deputy Assistant Secretary— 
(1) shall be appointed by the Secretary; and 
(2) shall perform such functions as the Secretary shall pre-
scribe. 
(c) MINIMUM NUMBER OF DEPUTY ASSISTANT SECRETARIES WITH 
CONTINUOUS SERVICE IN CIVIL SERVICE.—(1) At legist two-thirds of 
the number of positions established under subsection (a) and filled 
under subsection (b) shall be filled by individuals who have at least 5 
years of continuous service in the Federal civil service in the 
executive branch immediately preceding their appointment under 
subsection (b) as a Deputy Assistant Secretary. 
(2) For purposes of determining the continuous service of an 
individual pursuant to paragraph (1), there shall not be included 
any service by such individual in a position— 
(A) of a confidential, policy-determining, policy-making, or 
policy-advocating character; 
(B) in which such individual served as a noncareer appointee 
in the Senior Executive Service, as such term is defined in 
section 3132(aX7) of title 5, United States Code; or 
(C) to which such individual was appointed by the President, 
with or without the advice and consent of the Senate. 
Reports. 
President of U.S. 
38 u s e 201 note. 
102 STAT. 2640 
PUBLIC LAW 100-527—OCT. 25, 1988 
38 u s e 201 note. 
SEC. 6. VETERANS HEALTH SERVICES AND RESEARCH ADMINISTRATION. 
The establishment within the Veterans' Administration known as 
the Department of Medicine and Surgery is hereby redesignated as 
the Veterans Health Services and R^earch Administration of the 
Department of Veterans Affairs. 
38 u s e 201 note. SEC 7. VETERANS BENEFITS ADMINISTRATION. 
The establishment within the Veterans' Administration known as 
the Departxnent of Veterans' Benefits is hereby redesignated as the 
Veterans Benefits Administration of the Department of Veterans 
Affairs. The primary function of the Veterans Benefits Adminis-
tration shall be to administer nonmedical benefits programs which 
provide assistance to veterans, their dependents, and their 
survivors. 
38 u s e 201 note. 
President of U.S. 
SEC 8. OFFICE OF THE GENERAL COUNSEL. 
(a) IN GENERAL.—^There shall be in the Department of Veterans 
Affairs the Office of the General Counsel. There shall be at the head 
of such office a General Counsel who shall be appointed by the 
President, by and with the advice and consent of the Senate. The 
General Counsel shall be the chief l^al officer of the Department 
and shall provide l^al assistance to the Secretary concerning the 
programs and policies of the Department 
fl)) CONTINUATION OF SERVICE OF GENERAL COUNSEL.—^The individ-
ual serving on the effective date of this Act as the General Counsel 
of the Veterans' Administration may act as the General Counsel of 
the Department of Veterans Affairs until a person is appointed 
under this Act to that office. 
38 u s e 201 note. 
SEC 9. OFFICE OF THE INSPECTOR GENERAL. 
(a) REDESIGNATION.—^The Office of Inspector General of the Veter-
ans' Administration, established in accordance with the Inspector 
General Act of 1978, is hereby redesignated as the Office of Inspec-
tor General of the Department of Veterans Affairs. 
(b) STAFF LEVEL.—(1) The Secretary shall provide for not less than 
40 full-time positions in the Office of Inspector General in addition 
tc the number of such positions in that office on the effective date of 
this Act. 
(2) Of the number of additional full-time positions in the Office of 
Inspector General required by paragraph (1), the Secretary shall 
provide for one-half by not later than September 30, 1990, and shall 
provide for the remainder by not later than September 30, 1991. 
(3) The President shall include in the budget transmitted to the 
Congress for each fiscal year after fiscal year 1989 pursuant to 
section 1105 of title 31, United States Code, an estimate of the 
amount for the Office of Inspector General that is sufficient to 
provide for not less than the number of full-time positions in that 
office on the effective date of this Act and the additional number of 
such positions required by paragraph (1) to be provided for by the 
Secretary. 
SEC. 
1
0
. 
REFERENCES. 
Reference in any other Federal law, Executive order, rule, regula-
tion, or del^ation of authority, or any document of or pertaining to 
the Veterans' Administration— 
(1) to the Administrator of Veterans' Affairs shall be deemed 
to refer to the Secretary of Veterans Affairs; 
President of U.S. 
38 u s e 201 note. 
PUBLIC LAW 100-527—OCT. 25, 1988 
102 STAT. 2641 
(2) to the Veterans' Administration shall be deemed to refer 
to the Department of Veterans Affairs; 
(3) to the Deputy Administrator of Veterans' Affairs shall be 
deemed to refer to the Deputy Secretary of Veterans Affairs; 
(4) to the Chief Medical Director of the Veterans' Administra-
tion shall be deemed to refer to the Chief Medical Director of 
the Department of Veterans Affairs; 
(5) to the Department of Medicine and Sui^ery of the Veter-
ans' Administration shall be deemed to refer to the Veterans 
Health Services and R^earch Administration of the Depart-
ment of Veterans Affairs; 
(6) to the Chief Benefits Director of the Veterans' Administra-
tion shall be deemed to refer to the Chief Benefits Director of 
the Department of Veterans Affairs; 
(7) to the Department of Veterans' Benefits of the Veterans' 
Administration shall be deemed to refer to the Veterans Bene-
fits Administration of the Department of Veterans Affairs; 
(8) to the Chief Memorial Affairs Director of the Veterans' 
Administration shall be deemed to refer to the Director of the 
National Cemetery System of the Department of Veterans 
Affairs; and 
(9) to the Department of Memorial Affairs of the Veterans' 
Administration shall be deemed to refer to the National Ceme-
tery System of the Department of Veterans Affairs. 
SBC 11. SAVINGS PROVISIONS. 
38 USC 201 note. 
(a) CONTINUING EJFFBCT OF LEGAL DOCUMENTS.—All orders, deter-
minations, rules, r^ulations, permits, grants, contracts, certificates, 
licenses, and privil^es— 
(1) which have been issued, made, granted, or allowed to 
become effective by the President, by the Administrator of 
Veterans' Affairs, or by a court of competent jurisdiction, in the 
performance of functions of the Administrator or the Veterans' 
Administration; and 
(2) which are in effect on the effective date of this Act; 
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law 
by the President, the Secretary, or other authorized official, by a 
court of competent jurisdiction, or by operation of law. 
(b) PROCEEDINGS NOT AFFECTED.—The provisions of this Act shall 
not affect any proceedings or any application for any benefits, 
service, license, permit, certificate, or financial assistance pending 
before the Veterans' Administration at the time this Act takes 
effect, but such proceedings and applications shall be continued. 
Orders shall be issued in such proceedings, appeals shall be taken 
therefrom, and payments shall be made pursuant to such orders, as 
if this Act had not been enacted, and orders issued in any such 
proceedings shall continue in effect until modified, 
terminated, 
superseded, or revoked by a duly authorized official, by a court of 
competent jurisdiction, or by operation of law. Nothing in this 
subsection shall be deemed to prohibit the discontinuance or modi-
fication of any such proceeding under the same terms and conditions 
and to the same extent that such proceeding could have been 
discontinued or modified if this Act had not been enacted. 
(c) SUITS NOT AFFECTED.—The provisions of this Act shall not 
affect suits commenced before the effective date of this Act, and in 
all such suits, proceedings shall be had, appeals taken, and judg-
102 STAT. 2642 
PUBLIC LAW 100-527—OCT. 25, 1988 
ments rendered in the same manner and with the same effect as if 
this Act had not been enacted. 
(d) NoNABATEMENT O
F ACTIONS.—No suit, action, or other proceed-
ing commenced by or against the Veterans' Administration, or by or 
against any individual in the official capacity of such individual as 
an officer of the Veterans' Administration, shall abate by reason of 
the enactment of this Act. 
(e) PROPERTY AND RESOURCES.—^The contracts, liabilities, records, 
property, and other assets and interests of the Veterans' Adminis-
tration shall, after the effective date of this Act, be considered to be 
the contracts, liabilities, records, property, and other assets and 
interests of the Department of Veterans Affairs. 
(0 COMPENSATION FOR CONTINUED SERVICE.—Any person— 
(1) who acts as Secretary or Deputy Secretary of the Depart-
ment of Veterans Affairs under section 3(e); 
(2) who continues to serve as Chief Medical Director or Chief 
Benefits Director of such department under section 3 (f) or (g), 
respectively; 
(3) who acts as the Director of the National Cemetery System 
under section 3(h); or 
(4) who acts as General Counsel of the Department of Veter-
ans Affairs imder section 8(b); 
after the effective date of this Act and before the first appointment 
of a person to such position after such date shall continue to be 
compensated for so serving or acting at the rate at which such 
person was compensated before the effective date of this Act. 
38 u s e 201 note. 
SEC 12. MISCELLANEOUS EMPLOYMENT RESTRICTIONS. 
(a) LIMITATION ON NUMBER OF NONCAREER SENIOR EXECUTIVES.— 
(1) Notwithstanding section 3134(d) of title 5, United States Code, 
the number of Senior Ebcecutive Service positions in the Department 
of Veterans Affairs which are filled by noncareer appointees in any 
fiscal year may not at any time exceed 5 percent of the average 
number of senior executives employed in Senior EJxecutive Service 
positions in the Department during the preceding fiscal year. 
(2) For purposes of this subsection, the average number of senior 
executives employed in Senior E^xecutive Service positions in the 
Department during a fiscal year shall be equal to 25 percent of the 
sum of tiiie total number of senior executives employed in Senior 
Executive Service positions in the Department on the last day of 
each quarter of such fiscal year. 
(b) LIMITATION ON NUMBER OF SCHEDULE C EMPLOYEES.—The 
number of positions in the Department of Veterans Affairs which 
may be excepted from the competitive service, on a temporary or 
permanent basis, because of their confidential or policy-determining 
character may not at any time exceed the equivalent of 15 positions. 
(c) 
PROHIBITED EMPLOYMENT AND 
ADVANCEMENT (!!ONSIDER-
ATIONS.—(1) Political affiliation or activity may not be taken into 
account in connection with the appointment of any person to any 
position in or to perform any service for the Department of Veterans 
Affairs, or in the assignment or advancement of any employee in the 
Department. 
(2) Paragraph (1) shall not apply to the appointment of any person 
by the President under this Act, other than the appointment of the 
Chief Medical Director, the Chief Benefits Director, and the Inspec-
tor General of the Department of Veterans Affairs. 
PUBLIC LAW 100-527—OCT. 25, 1988 
102 STAT. 2643 
SECL 1
3
w CONFORMING AMENDMENTS. 
(a) PRESIDENTIAL SUCCESSION.—Section 19(d)(1) of title 3, United 
States Code, is amended by inserting before the period at the end 
thereof the following: ", Secretary of Veterans Affairs". 
(b) DEFINITION OF DEPARTMENT, CIVIL SERVICE LAWS.—Section 101 
of title 5, United States Code, is amended by adding at the end 
thereof the following: 
'TThe Department of Veterans Affairs.". 
(c) COMPENSATION, LEVEL L—^Section 5312 of title 5, United States 
Code, is amended by adding at the end thereof the following: 
"Secretary of Veterans Affairs.". 
(d) COMPENSATION, LEVEL IL—^Section 5313 of title 5, United States 
Code, is amended by striking out "Administrator of Veterans' 
Affairs" and inserting in lieu thereof "Deputy Secretary of Veterans 
Affairs". 
(e) COMPENSATION, LEVEL IIL—Section 5314 of title 5, United 
States Code, is amended— 
(1) by strildng out "Deputy Administrator of Veterans' 
Affairs."; and 
(2) by sidding at the end thereof the following: 
"Chief Medical Director, Department of Veterans Affairs. 
"Chief Benefits Director, Department of Veterans Affairs.". 
(f) COMPENSATION, LEVEL IV.—Section 5315 of title 5, United 
States Code, is amended— 
(1) by striking out "Inspector General, Veterans* Administra-
tion" and inserting in lieu thereof "Inspector General, Depart-
ment of Veterans Affairs"; and 
(2) by adding at the end thereof the following: 
"Asrastant Secretaries, Department of Veterans Affairs (6). 
"General Counsel, Department of Veterans Affairs. 
"Director of the National Cemetery Sjrstem.". 
(g) COMPENSATION, LEVEL V.—Section 5316 of title 5, United States 
Code, is amended— 
(1) by striking out "Associate Deputy Administrator of Veter-
ans' Affairs."; 
(2) by striking out "Chief Benefits Director, Veterans' 
Administration."; 
(3) by striking out "General Counsel of the Veterans' 
Administration."; and 
(4) by striking out "Director, National Cemetery System, 
Veterans' Administration.". 
(h) INSPECTOR GENERAL ACT.—^The Inspector General Act of 1978 
is amended— 
(1) in section 2(1)— 
5 USC app. 
(A) by inserting "the Department of Veterans Affairs," 
after "Transportation,"; and 
(B) by striking out "the Veterans' Administration,"; 
(2) in section 11(1)— 
5 USC app. 
(A) by striking out "or Transportation" and inserting in 
lieu thereof "Transportation, or Veterans' Affairs,"; and 
(B) by striking out "Small Business, or Veterans' Affairs" 
and inserting in lieu thereof "or Small Business"; and 
(3) in section 11(2)— 
(A) by striking out "or Transportation" and inserting in 
lieu thereof "Transportation, or Veterans Affairs,"; and 
102 STAT. 2644 
PUBLIC LAW 100-527—OCT. 25, 1988 
(B) by striking out "the United States Information 
Agency or the Veterans' Administration" and inserting in 
lieu thereof "or the United States Information Agency". 
(i) NATIONAL CEMETERY SYSTEM.—Section 1000 of title 38, United 
States Code, is amended in subsection (a) by striking out the second 
sentence and inserting in lieu thereof the following: "Such system 
shall be headed by the Director of the National Cemetery System, 
who shall perform such functions as may be assigned by the 
Secretary.". 
38 u s e 201 note. 
SEC. 14. ADDITIONAL CONFORMING AMENDMENTS. 
After consultation with the appropriate committees of the Con-
gress, the Secretary of Veterans Affairs shall prepare and submit to 
the Congress proposed legislation containing technical and conform-
ing amendments to title 38, United States Code, and to other 
provisions of law, which reflect the changes made by this Act. Such 
legislation shall be submitted not later than 6 months after the date 
of enactment of this Act. 
SEC. 15. ADMINISTRATIVE REORGANIZATIONS. 
(a) MODIFICATIONS OF CovERAOE.—Section 21003X2) of title 38, 
United States Code, is amended— 
(1) by striking out subparagraph (B) and inserting in lieu 
thereof the following: 
"(B) An administrative reorganization described in this subpara-
graph is an administrative reorganization of— 
"(i) a covered field office or facility which involves a reduction 
during any fiscal year in the number of full-time equivalent 
employees with permanent duty stations at such office or 
facility— 
"(I) by 10 percent or more, or 
"(II) by a percent which, when added to the percent 
reduction made in the number of such employees with 
permanent duty stations at such office or facility during the 
preceding fisced year, is 15 percent or more; or 
"(ii) a covered Central Office unit which involves a reduction 
during any fiscal year in the number of full-time equivalent 
employees with permanent duty stations at such unit— 
"(I) by 25 percent or more, or 
"(II) by a p)ercent which, when added to the percent 
reduction made in the number of such employees with 
permanent duty stations at such unit during the preceding 
fisc£d year, is 30 percent or more."; 
(2) in subparagraph (C)— 
(A) by striking out "(C) For" and inserting in lieu thereof 
"(D) For"; 
(B) by redesignating division (iii) as division (iv); and 
(C) by striking out division (ii) and inserting in lieu 
thereof the following new divisions: 
"(ii) The term 'covered Central Office unit' means an office in 
the Veterans' Administration's (Dentral Office that is the 
permanent duty station for 100 or more employees. 
"(iii) The term 'covered field office or facility' means a Veter-
ans' Administration office or facility outside the Veterans' 
Administration CJentral Office that is the permanent duty sta-
tion for 25 or more employees or that is a free-standing out-
patient clinic"; and 
PUBLIC LAW 100-527—OCT. 25, 1988 
102 STAT. 2645 
(3) by inserting after subparagraph (B) the following new 
subparagraph (C): 
"(C) Not less than 30 days before the date on which the im-
plementation of any reorganization described in this subparagraph 
is to begin, the Administrator shall transmit to the Committees on 
Veterans' Affairs of the Senate and the House of Representatives a 
notification regarding the reorganization. This subparagraph ap-
plies to the reorganization of any unit of the Central Office of the 
Veterans' Administration that is the duty station for more than 25 
but less than 100 employees if the reorganization involves a reduc-
tion in any fiscal year in the number of full-time equivalent em-
ployees with permanent duty station in such unit— 
"(i) by 10 percent or more, or 
"(ii) by a percent which, when added to the percent reduction 
made in the number of such employees with permanent duty 
station in such unit during the preceding fiscal year, is 15 
percent or more.". 
0)) INAPPUCABIUTY OF RESTRICTIONS.—Section 210(b) of title 38, 38 use 210 note. 
United States Code (as amended by subsection (a)), shall not apply to 
a reorganization of a unit of the Central Office of the Department of 
Veterans' Affairs if the reorganization— 
(1) is necessary in order to carry out the provisions of or 
amendments made by this Act; and 
(2) is initiated within 6 months after the effective date of this 
Act. 
(c) CONSTRUCTION.—References to the Administrator of Veterans' 
38 use 210 note. 
Affairs and the Veterans' Administration are used in the amend-
ments made by subsection (a) in order to maintain conformity with 
the references appearing in the provisions of section 210 of title 38, 
United States Code, that are not amended by subsection (a). The 
references appearing in such amendments are subject to the ref-
erence rules provided in section 10 of this Act. 
SEC. 16. SPENDING AUTHORITY SUBJECT TO APPROPRIATIONS. 
38 USC 201 note. 
The authority to make payments or to enter into other obligations 
under this Act shall be effective for any fiscal year only to such 
extent or in such amounts as are provided in appropriations Acts. 
SEC. 17. NATIONAL COMMISSION ON EXECUTIVE ORGANIZATION. 
5 USC 901 note. 
(a) ESTABUSHMENT.—(1) Within 30 days after the effective date of 
President of U.S. 
this Act, the President shall make a determination as to whether 
the national interest would be served by the establishment of a 
commission to review the structural organization of the executive 
branch of the Federal Government. If the President makes a deter-
mination that such establishment is in the national interest, the 
President shall transmit to the Congress written notification of his 
intent to establish the National Commission on Executive Organiza-
tion under this section. 
(2) If the President fails to transmit notification under paragraph 
Termination 
(1), this section shall cease to be effective 30 days after the effective 
date. 
date of this Act. 
Ot)) MEMBERSHIP OF THE COMMISSION.—A commission established 
under this section shall be composed of 16 members appointed not 
later than 90 days after the effective date of this Act. The members 
shall be appointed as follows: 
(1) Six citizens of the United States appointed by the Presi- 
President of U.S. 
dent, one of whom shall be designated by the President to be the 
102 STAT. 2646 
PUBLIC LAW 100-527—OCT. 25, 1988 
Chairman of the Commission. Not more than four of the mem-
bers appointed by the President may be from the same political 
party as the President. 
(2) Two members of the Senate and one citizen of the United 
States appointed by the President pro tempore of the Senate 
upon the recommendation of the majority leader of the Senate. 
(3) One Member of the Senate and one citizen of the United 
States appointed by the President pro tempore of the Senate 
upon the recommendation of the minority leader of the Senate. 
(4) Two members of the House of Representatives and one 
citizen of the United States appointed by the Speaker of the 
House of Representatives upon the recommendation of the 
majority leader of the House of Representatives. 
(5) One Member of the House of Representatives and one 
citizen of the United States appointed by the Speaker of the 
House of Representatives upon the recommendation of the 
minority leader of the House of Representatives. 
(c) RESTRICTIONS ON PAY AND ALLOWANCES.-K1) Elxcept as pro-
vided in paragraph (2), members of the Commission shall receive no 
pay, allowances, or benefits by reason of service on the Commission. 
(2) Members of the Commission appointed from among private 
citizens of the United States may be allowed travel expenses, includ-
ing per diem, in lieu of subsistence, as authorized by law for persons 
serving intermittentiy in the Federad Government. 
(d) FUNCTIONS OF COMMISSION.—^The Commission shall examine 
and make recommendations with respect to— 
(1) criteria for use by the President and Congress in evaluat-
ing proposals for chsmges in the structure of the executive 
branch of the Federal Government, including criteria for use by 
the President and Congress in evaluating and overseeing 
GovemmentHsponsored enterprises and Government corpora-
tions; 
(2) the oxganization of the executive branch, including the 
number of departments and the organizational structure of 
each such department, the advisability of reorganizing or abol-
ishing any such department, and the advisability of establishing 
any new executive department; 
(3) the most effective and practicable structure of the Execu-
tive Office of the President for conducting oversight of the 
executive branch, and criteria for use by such Office in evaluat-
ing and overseeing the performance of the executive branch; 
and 
(4) the most effective and practicable structure of the Presi-
dent's cabinet and means of operation of such cabinet, including 
recommendations concerning the number, composition, and 
duties of the members of such cabinet. 
(e) REPOBT.—(1) Not later than 12 months after the completion of 
appointment of the members of the Commission, the Commission 
shall submit to the President, the Senate, and the House of Rep-
resentatives a report which contains a detailed statement of the 
recommendations of the Commission. 
(2) The date on which the report is due may be extended to such 
date as the F^resident may prescribe in an Executive order, except 
that such date may not be later than six months after the date on 
which such report is otlierwise due under paragraph (1). 
(f) PowEBS OF COMMISSION.—(1) The Commission may, for the 
purpose of canying out this section, hold such hearings and sit and 
PUBLIC LAW 100-527—OCT. 25, 1988 
102 STAT. 2647 
act at such times and places, as the Commission considers appro-
priate. 
(2) The Commission may adopt such rules and regulations as may 
be necessary to establish procedures and to govern the manner of 
the operation, organization, and personnel of the Commission. 
(3)(A) The Commission may request from the head of any depart-
ment, agency, or other instrumentality of the Federal Government 
such information as the Commission may require for the purpose of 
carrying out this section. The head of such department, agency, or 
instrumentality shall, to the extent otherwise permitted by law, 
furnish such information to the Commission upon request made by 
the Chairman. 
(B) Upon request of the Chairman of the Commission, the head of 
any department, agency, or other instrumentality of the Federal 
Government shall, to the extent possible and subject to the discre-
tion of such head— 
(i) make any of the facilities and services of such department, 
agency, or instrumentality available to the Commission; and 
(ii) detail any of the personnel of such department, agency, or 
instrumentality to the Commission, on a nonreimbursable basis, 
to assist the Commission in carrying out the duties of the 
Commission under this section. 
(4) The Commission may use the United States mails in the same 
manner and under the same conditions as the departments and 
agencies of the Federal Government. 
(5) The Commission may, to such extent and in such amounts as 
are provided in appropriations Acts, enter into contracts with State 
agencies, private firms, institutions, and individuals for the purpose 
of conducting research or surveys necessary to enable the Commis-
sion to discharge the duties of the Commission under this section. 
(6) Subject to such rules and regulations as may be adopted by the 
Commission, the Chairman of the Commission may appoint, termi-
nate, and fix the pay of an Executive Director and of such additional 
staff as the Chairman considers appropriate to assist the Commis-
sion. The Chairman may fix the pay of personnel appointed under 
this paragraph without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of title 5, United States Code (relating 
to the number or classification of employees and to rates of pay), the 
provisions of such title governing appointments in the competitive 
service, and any other similar provision of law; except that no rate 
of pay fixed under this paragraph may exceed a rate equal to the 
rate of pay payable for grade GS-18 of the General Schedule under 
section 5332 of such title. 
(g) APPUCABIUTY OF THE FEDERAL ADVISORY COMMITTEE ACT.—The 
Commission shall be an advisory committee for purposes of the 
Federal Advisory Committee Act (5 U.S.C. App. 2). 
(h) TERMINATION OF COMMISSION.—The Commission shall cease to 
exist on the date that is 30 days after the date on which the 
Commission submits the report required under subsection (e). 
(i) PREPARATION FOR THE COMMISSION.—Not later than 90 days 
after the effective date of this Act, the Comptroller General of the 
United States, the Director of the Congressional Research Service, 
the Director of the Congressional Budget Office, and the Director of 
the Office of Technology Assessment shall each submit to the 
Commission established under this section an index to and synopses of 
materials of the organization of the official that such official con-
siders useful to the Commission. Subject to laws governing the 
classified 
information. 
102 STAT. 2648 
PUBLIC LAW 100-527—OCT. 25, 1988 
disclosure of classified or otherwise restricted information, 
such 
materials may include reports, analyses, recommendations, and 
results of research of such organization. 
0) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated to the Commission not more than $1,500,000 for 
carrying out this section. 
38 u s e 201 note. 
SEC. 18. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in subsection 0)), this Act 
shall take effect on March 15,1989. 
Ot)) APPOINTMENT OF SECRETARY.—Notwithstanding any other 
provision of law or of this Act, the President may, any time after 
January 21,1989, appoint an individual to serve as Secretary of the 
Department of Veterans Affairs. 
Approved October 25, 1988. 
LEGISLATIVE HISTORY—H.R. 3471 (S. 533): 
HOUSE REPORTS: No. 100-435 (Comm. on Government Operations) and No. 
100-1036 (Comm. of Conference). 
SENATE REPORTS: No. 100-342 accompanying S. 533 (Comm. on Governmental 
Affairs). 
CONGRESSIONAL RECORD: 
Vol. 133 (1987): Nov. 16, 17, considered and passed House. 
Vol. 134 (1988): July 11, S. 533 considered in Senate. 
July 12, H.R. 3471 considered and passed Senate, amended, in 
lieu of S. 533. 
Oct. 6, House agreed to conference report. 
Oct. 18, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 24 (1988): 
Oct. 25, Presidential remarks.