Veterans' Benefits Amendments of 1989
PL 101-237 (H.R.901), enacted 12/18/1989

103 STAT. 2062 
PUBLIC LAW 101-237—DEC. 18, 1989 
Public Law 101-237 
101st Congress 
An Act 
To amend title 38, United States Code, to provide a 4.7 percent cost-of-living adjust-
ment in rates of disability compensation for veterans with service-connected di»-
Dec. 18, 1989 
abilities and in rates of dependency and indemnity compensation for survivors of 
[H.R. 901] 
veterans dying from service-connected causes and to improve certain veterans 
health-care, education, housing, and memorial affairs programs; and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
Veterans' 
United States of America in Congress assembled. 
Benefits 
Amendments of 
SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
^^^^- 
CODE. 
38 use 101 note. 
(a) SHORT TITLE.—This Act may be cited as the "Veterans' Bene-
fits Amendments of 1989". 
Q}) REFERENCES.—Except as otherwise expressly provided, when-
ever in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the ref-
erence shall be considered to be made to a section or other provision 
of title 38, United States Code. 
SEC. 2. DEFINITIONS. 
(a) TITLE 38, U.S.C—Section 101(1) is amended to read as follows: 
"(1) Tlie terms 'Secretary' and 'Administrator' mean the Sec-
retary of Veterans Affairs, and the terms 'Department' and 'Veter-
ans' Administration' mean the Department of Veterans Affairs.". 
Ot)) THIS ACT.—For purposes of this Act, the term "Secretary" 
means the Secretary of Veterans Affairs. 
TITLE I—COMPENSATION AND PENSION 
PART A—COMPENSATION RATE INCREASES 
SEC. 101. DISABILITY COMPENSATION. 
(a) 4.7 PERCENT INCREASE.—Section 314 is amended— 
(1) by striking out "$73" in subsection (a) and inserting in lieu 
thereof "$76"; 
(2) by striking out "$138" in subsection (b) and inserting in 
lieu thereof "$144"; 
(3) by striking out "$210" in subsection (c) and inserting in 
lieu thereof "$220"; 
(4) by striking out "$300" in subsection (d) and inserting in 
lieu thereof "$314"; 
(5) by striking out "$426" in subsection (e) and inserting in 
lieu thereof "$446"; 
(6) by striking out "$537" in subsection (f) and inserting in 
lieu thereof "$562"; 
(7) by striking out "$678" in subsection (g) and inserting in 
lieu thereof "$710"; 
(8) by striking out "$784" in subsection (h) and inserting in 
lieu thereof "$821"; 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2063 
(9) by striking out "$883" in subsection (i) and inserting in 
lieu thereof "$925"; 
(10) by striking out "$1,468" in subsection (j) and inserting in 
lieu thereof "$1,537"; 
(11) in subsection (k)— 
(A) by striking out "$63" both places it appears and 
* 
inserting in lieu thereof "$66"; and 
(B) by striking out "$1,825" and "$2,559" and inserting in 
lieu thereof "$1,911", and "$2,679", respectively. 
(12) by striking out "$1,825" in subsection (1) and inserting in 
lieu thereof "$1,911"; 
(13) by striking out "$2,012" in subsection (m) and inserting in 
lieu thereof "$2,107"; 
(14) by striking out "$2,289" in subsection (n) and inserting in 
lieu thereof "$2,397"; 
(15) by striking out "$2,559" each place it appears in subsec-
tions (o) and (p) and inserting in lieu thereof "$2,679"; 
(16) by striking out "$1,098" and "$1,636" in subsection (r) and 
inserting in lipu thereof "$1,150" and "$1,713", respectively; 
and 
(17) by striking out "$1,643" in subsection (s) and inserting in 
lieu thereof "$1,720"; and 
Qy) SPECIAL RULE.—The Secretary may adjust administratively, 
38 USC 314 note. 
consistent with the increases authorized by this section, the rates of 
disability compensation payable to persons within the purview of 
section 10 of Public Law 85-857 who are not in receipt of compensa-
tion payable pursuant to chapter 11 of title 38, United States Code. 
SEC. 102. ADDITIONAL COMPENSATION FOR DEPENDENTS. 
Section 315(1) is amended— 
(1) by striking out "$88" in clause (A) and inserting in lieu 
thereof "$92"* 
(2) by striking out "$148" and "$46" in clause (B) and insert-
ing in lieu thereof "$155" and "$48", respectively; 
(3) by striking out "$61" and "$46" in clause (C) and inserting 
in lieu thereof "$64" and "$48", respectively; 
(4) by striking out "$71" in clause (D) and inserting in lieu 
thereof "$74"; 
(5) by striking out "$161" in clause (E) and inserting in lieu 
thereof "$169"; and 
(6) by striking out "$136" in clause (F) and inserting in lieu 
thereof "$142"; 
SEC. 103. CLOTHING ALLOWANCE FOR CERTAIN DISABLED VETERANS. 
Section 362 is amended by striking out "$395" and inserting in 
lieu thereof "$414". 
SEC. 104. DEPENDENCY AND INDEMNITY COMPENSATION FOR SURVIV-
ING SPOUSES. 
Section 411 is amended— 
(1) by striking out the table in subsection (a) and inserting in 
lieu thereof the following: 
Monthly 
Monthly 
"Pay 
grade 
rate Pay 
grade 
rate 
E-1 
$564 
W-4 
$809 
E-2 
581 
O-l 
714 
)l-237-
597 
634 
651 
666 
698 
737 
770 
714 
742 
764 
-DEC. 
0-2 
0-3 
. , 
0-4 
0-5 
0-6. 
0-7 
0-8 
0-9 
O-IO 
1
8
, 
1989 
737 
789 
834 
920 
1,038 
1,121 
1,229 
1,318 
2 
1,446 
103 STAT. 2064 
PUBLIC LA^ 
E-3 
.......; 
E-4 
E-5 
E-6 
E-7 
E-8 
E-9 
^^ 
W-1 
^ 
W-2 
W-3 
"' If the veteran served aa sergeant major of the Army, senior enlisted advisor of the Navy, 
chief master sergeant of the Air Force, sergeant mf^or of the Marine Corps, or master chief 
petty officer of the Coast Guard, at the applicable time designated by section 402 of this title, 
the surviving spouse's rate shall be $831. 
"* If the veteran served as Chairman or Vice-Chairman of the Joint Chiefs of Staff, Chief of 
Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of 
the Marine Corps, or Commandant of the Coast Guard, at the applicable time designated by 
section 402 of this title, the surviving spouse's rate shall be $1,550."; 
(2) by striking out "$62" in subsection (b) and inserting in lieu 
thereof "$65"; 
(3) by striking out "$161" in subsection (c) and inserting in 
lieu thereof "$169"; and 
(4) by striking out "$79" in subsection (d) and inserting in lieu 
thereof "$83". 
SEC. 105. DEPENDENCY 
AND 
INDEMNITY 
COMPENSATION 
FOR 
CHILDREN. 
(a) DIG FOR ORPHAN CHILDREN.—Section 413(a) is amended— 
(1) by striking out "$271" in clause (1) and inserting in lieu 
thereof "$284"; 
(2) by striking out "$391" in clause (2) and inserting in lieu 
thereof "$409"; 
(3) by striking out "$505" in clause (3) and inserting in lieu 
thereof "$529"; and 
(4) by striking out "$505" and "$100" in clause (4) and insert-
ing in lieu thereof "$529" and "$105", respectively. 
O
t
>
) SUPPLEMENTAL DIG FOR DISABLED ADULT CHILDREN.—Section 
414 is amended— 
(1) by striking out "$161" in subsection (a) and inserting in 
lieu thereof "$169"; 
(2) by striking out "$271" in subsection O
t
>
) and inserting in 
lieu thereof "$284"; and 
(3) by striking out "$138" in subsection (c) and inserting in 
lieu thereof "$144". 
38 use 314 note. 
SEC. 106. EFFECTIVE DATE FOR RATE INCREASES. 
The amendments made by this part shall take effect on 
December 1,1989. 
PART B—COMPENSA-HON AND PENSION PROGRAM CHANGES 
SEC. 111. LIMITATIONS ON PENSIONS OF CERTAIN VETERANS RECEIVING 
INSTITUTIONAL CARE. 
(a) PAYMENT OF PENSION.—Section 3203(aXl) is amended— 
(1) by striking out "$60" in subparagraphs (A) and (B) and 
inserting in lieu thereof "$90"; 
(2) by striking out "second" in subparagraph (A) and inserting 
in lieu thereof "third"; 
PUBLIC LAW 101-237—DEC. 18,1989 
103 STAT. 2065 
(3) by striking out "hospital or" each place it appears in 
subparagraphs (B) and (D). 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 38 use 3203 
shall take effect on February 1,1990. 
'^°^-
SEC. 112. EXPANSION OF CLOTHING ALLOWANCE. 
Section 362 is amended— 
(1) by striking out "Administrator" the first two places it 
appears and inserting in lieu thereof "Secretary"; 
(2) by striking out all after "each veteran" and inserting in 
lieu thereof "who— 
"(1) because of a service-connected disability, wears or uses a 
prosthetic or orthopedic appliance (including a wheelchair) 
which the Secretary determines tends to wear out or tear the 
clothing of the veteran; or 
"(2) uses medication which (A) a physician has prescribed for 
a skin condition which is due to a service-connected disability, 
and (B) the Secretary determines causes irreparable damage to 
the veteran's outergarments.". 
SEC. 113. REDUCTION IN PERIOD OF MARRIAGE REQUIRED FOR ELIGI-
BILITY FOR CERTAIN SURVIVOR BENEFITS. 
Section 418(cXl) is amended by striking out "two years" and 
inserting in lieu thereof "one year". 
SEC. 114. TEMPORARY PROGRAM OF VOCATIONAL TRAINING. 
(a) REDUCTION IN MAXIMUM AGE OF NEW PENSION RECIPIENTS FOR 
WHOM VOCATIONAL EVALUATIONS ARE REQUIRED.—Section 524(a) is 
amended by striking out "50" in paragraphs (1) and (2) and inserting 
in lieu thereof "45". 
(b) PRESERVATION OF DISABILITY RATING.—Section 524 is amended 
by redesignating subsections (c) and (d) as subsections (d) and (e) and 
inserting after subsection Ot)) the following: 
"(c) In the case of a veteran who has been determined to have a 
permanent and total non-service-connected disability and who, not 
later than one year after the date the veteran's eligibility for 
counseling under subsection (bX3) of this section expires, secures 
emplojrment within the scope of a vocational goal identified in the 
veteran's individualized written plan of vocational rehabilitation (or 
in a related field which requires reasonably developed skills and the 
use of some or all of the training or services furnished the veteran 
under such plan), the evaluation of the veteran as having a perma-
nent and total disability may not be terminated by reason of the 
veteran's capacity to engage in such employment until the veteran 
first maintains such employment for a period of not less than 12 
consecutive months.". 
SEC. 115. DECISIONS AND NOTICES OF DECISIONS. 
(a) IN GENERAL.—(1) Chapter 51 is amended by inserting after 
section 3003 the following new section: 
**§ 3004. Decisions and notices of decisions 
"(aXD In the case of a decision by the Secretary under section 
211(a) of this title affecting the provision of benefits to a claimant, 
the Secretary shall, on a timely basis, provide to the claimant (and 
to the claimsmt's representative) notice of such decision. The notice 
103 STAT. 2066 
PUBLIC LAW 101-237—DEC. 18, 1989 
shall include an explanation of the procedure for obtaining review of 
the decision. 
"(2) In any case where the Secretary denies a benefit sought, the 
notice required by paragraph (1) of this subsection shall also include 
(A) a statement of the reasons for the decision, and (B) a summary of 
the evidence considered by the Secretary.". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3003 the 
following new item: 
"3004. Decisions and notices of decisions.". 
38 use 3004 
(b) EFFECTIVE DATE.—Section 3004 of title 38, United States Code, 
note. 
gg added by subsection (a), shall apply with respect to decisions by 
the Secretary of Veterans Affairs made after January 31, 1990. 
TITLE II—HEALTH-CARE PROVISIONS 
SEC. 201. EXTENSION OF CERTAIN EXPIRING PROGRAMS. 
(a) RESPITE CARE.—Section 620B(c) is amended bv striking out 
"September 30, 1989" and inserting in lieu thereof September 30, 
1992". 
0)) STATE HOME GRANT AUTHORITY.—Section 5033(a) is amended 
by striking out "September 30, 1990" and inserting in lieu thereof 
"September 30,1992". 
(c) HOMELESS VETERANS.—Section 115(d) of the Veterans' Benefits 
38 use 612 note, and Services Act of 1988 (Public Law 100-322; 102 Stat. 501) is 
amended by striking out "September 30, 1989" and inserting in lieu 
thereof "September 30,1992'. 
(d) ANNUAL REPORT ON MEANS TEST FOR FURNISHING NON-SERV-
ICE-CONNECTED HEALTH CARE.—Section 19011(eXl) of the Veterans' 
Health Care Amendments of 1986 (title XIX of Public Law 99-272; 
38 use 610 note. 100 Stat. 379) is amended by striking out "and 1988" and inserting 
in lieu thereof ", 1988 and 1989". 
38 use 612A 
(e) UPDATES OF REPORTS UNDER SECTION 110(e) OF PUBUC LAW 98-
note. 
528.—(1) Not later than February 1, 1990, the Special Committee on 
Post-Traumatic Stress Disorder (hereinafter in this subsection re-
ferred to as the "Special Committee") established pursuant to sec-
tion 110(bXl) of the Veterans' Health Care Act of 1984 (Public Law 
98-528; 98 Stat. 2691) shall submit concurrently to the Secretary of 
Veter£ins Affairs and the Committees on Veterans' Affairs of the 
Senate and House of Representatives (hereinafter in this subsection 
referred to as the "Committees") a report containing information 
updating the reports submitted by the Secretary under section 110(e) 
of such Act, together with any additional information the Special 
Committee considers appropriate regarding the overall efforts of the 
Department of Veterans Affairs to meet the needs of veterans with 
post-traumatic stress disorder and other psychological problems in 
readjusting to civilian life. 
(2) Not later than 60 days after receiving the report under 
paragraph (1), the Secretary shall submit to the Committees any 
comments concerning the report that the Secretary considers 
appropriate. 
SEC. 202. REIMBURSEMENT FOR EMERGENCY CARE OF VOCATIONAL RE-
HABILITATION PARTICIPANTS. 
(a) IN GENERAL.—Section 628(aX2XD) is amended by striking out 
"found to be" and all that follows through "rehabilitation training 
*%^«l«f7>e-5'^' 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2067 
and" and inserting in lieu thereof "(i) a participant in a vocational 
rehabilitation program (as defined in section 1501(9) of this title), 
and(iir. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 38 use 628 note. 
shall apply with respect to hospital care and mecUcal services re-
ceived on or after the date of the enactment of this Act 
SEC 203. APPOINTBIENT OF CERTAIN INDIVIDUALS IN HEALTH-CARE 
POSITIONS. 
Section 4106 is amended by adding at the end the following new 
subsection: 
"(hXD The Secretary may appoint in the competitive civil service 
without r^ard to the provisions of subchapter I of chapter 33 of title 
5 (other than sections 3303 and 3328 of such title) an individual 
who— 
"(A) has a recognized d^ree or certificate from an accredited 
institution in a health-care profession or occupation; and 
"(B) has successfully completed a clinical education pn^ram 
affiliated with the Department. 
"(2) In using the authority provided by this subsection, the Sec-
retary shall apply the principles of preference for the hiring of 
veterans and other persons established in subchapter I of chapter 33 
of title 5.". 
SEC. 204. APPROVAL OF SPECIAL RATES OF PAT. 
Section 4107^X4) is amended— 
(1) in the first sentence, by striking out ''ninety days prior to" 
and inserting in lieu thereof''45 days before"; and 
(2) by adding at the end the following new sentence: "If, 
before such effective date, the President approves such increase, 
the Secretary may advance the effective date to any date not 
earlier than the date of the President's approval". 
SEC 205. REVISION IN LDIITATION ON COBIPENSATION OF HEALTH-CABE 
PERSONNEL WHO ARE RETIRED MILITARY PERSONNEL. 
(a) EXTENSION TO REGISTERED NUBSES.—Section 4107(i) is 
amended— 
(1) by inserting ", and roistered nurse positions," after 
"physician positions"; and 
(2) by adding at the end the following new sentence: "The 
authority of the Secretary under the preceding sentence with 
respect to r^istered-nurse positions expires on September 30, 
1992.". 
(b) EFFECTIVB DATE.—The amendment made by subsection (aXD 38 use 4107 
shall take effect on the first day of the first pay period beginning on 
or after the date of the enactment of this Act 
note. 
SEC 206. LEAVE SHARING AND LEAVE BANKS. 
(a) IN GENERAL.—Section 4108 is amended by adding at the end 
the following new subsection: 
"(eXD The Secretary shall establish a leave transfer program for Health care 
the benefit of health-care professionals referred to in the matter professionals. 
preceding clause (1) of subsection (a) of this section. The Secretaiv 
may also establish a leave bank program for the benefit of such 
hesdth-care professionals. 
"(2) To the maximum extent feasible— 
103 STAT. 2068 
PUBLIC LAW 101-237—DEC. 18, 1989 
"(A) the leave transfer program shall provide the same or 
similar requirements and conditions as are provided for the 
program established by the Director of the Office of Personnel 
Management under subchapter III of chapter 63 of title 5; and 
"(B) any leave bank program established pursuant to para-
graph (1) of this subsection shall be consistent with the require-
ments and conditions provided for agency leave bank programs 
in subchapter IV of such chapter. 
"(3) Participation by a health-care professional in the leave trans-
fer program established pursuant to paragraph (1) of this subsection, 
and in any leave bank program established pursuant to such para-
graph, shall be voluntary. The Secretary may not require any 
health-care professional to participate in such a program. 
"(4XA) The Secretary and the Director of the Office of Personnel 
Management may enter into an agreement that permits health-care 
professionals referred to in paragraph (1) of this subsection to 
participate in the leave transfer program established by the Direc-
tor of the Office of Personnel Management under subchapter III of 
chapter 63 of title 5 or in any leave bank program established for 
other employees of the Department pursuant to subchapter IV of 
chapter 63 of title 5, or both. 
"(B) Participation of such health-care professionals in a leave 
transfer progrgim or a leave bank program pursuant to an agree-
ment entered into under subparagraph (A) of this paragraph shall 
be subject to such requirements and conditions as may be prescribed 
in such agreement. 
"(5) The Secretary is not required to establish a leave transfer 
program for any personnel permitted to participate in a leave 
transfer program pursuant to an agreement referred to in para-
graph (4) of this subsection.". 
38 use 4108 
(b) IMPLEMENTATION.—(1) The Secretary shall implement the pro-
no^- 
grams provided for in subsection (e) of section 4108 of title 38, 
United States Code (as added by subsection (a) of this section), not 
later than October 1,1990. 
5 use 6302 note. 
(2) The authority of the Department of Veterans Affairs under 
section 618 of the Treasury, Postal Service and General Government 
Appropriations Act, 1989, to operate a leave-transfer program for 
employees subject to section 4108 of title 38, United States Code, is 
extended until the programs provided for in subsection (e) of such 
\ 
section 4108 (as added by subsection (a) of this section) are imple-
mented, but not later than October 1,1990. 
SEC. 207. HEALTH PROFESSIONAL SCHOLARSHIPS. 
(a) APPUCANT PRIORITY AND EQUITABLE ALLOCATION FOR NURSING 
DEGREE APPUCANTS.—Section 4312(bX5) is amended to read as 
follows: 
"(5) In selecting applicants for the Scholarship Program, the 
Secretary— 
"(A) shall give priority to applicants who will be entering 
their final year in a course of training; and 
"(B) shall ensure an equitable allocation of scholarships to 
persons enrolled in the second year of a program leading to an 
associate degree in nursing.". 
38 use 4312 
(b) IMPLEMENTATION REQUIREMENT.—The Secretary of Veterans 
^°^- 
Affairs shall provide for the implementation of the amendment 
made by subsection (a) beginning with scholarships awarded under 
section 4312 of title 38, United States Code, during 1990. 
PUBLIC LAW 101-237—DEC. 18, 1989 
TITLE III—HOUSING 
103 STAT. 2069 
Veterans Home 
Loan Indemnity 
and 
Restructuring 
Act of 1989. 
38 use 101 note. 
SEC. 301. SHORT TITLE. 
This title may be cited as the "Veterans Home Loan Indemnity 
and Restructuring Act of 1989". 
SEC. 302. ESTABLISHMENT OF GUARANTY AND INDEMNITY FUND. 
(a) NEW FUND.—(1) Section 1825 is amended to read as follows: 
"§ 1825. Guaranty and Indemnity Fund 
"(a) There is hereby established in the Treasury of the United 
States a revolving fund known as the Guarsmty and Indemnity 
Fund. 
"(b) The Guaranty and Indemnity Fund shall be available to the 
Secretary for all operations carried out with respect to housing 
loans guaranteed or insured under this chapter that are closed after 
December 31, 1989, except for operations with respect to loans for 
any purpose specified in section 1812 of this title, for loans guaran-
teed under section 1811(g) of this title, and for administrative ex-
penses. For purposes of this subsection, the term 'administrative 
expenses' shall not include expenses incurred by the Secretary for 
appraisals performed after December 31, 1989, on a contractual 
basis in connection with the liquidation of housing loans guaran-
teed, insured, or made under this chapter. 
"(cXD All fees collected under section 1829 of this title for loans 
with respect to which the Guaranty and Indemnity Fund is avail-
able shall be credited to such Fund. 
"(2) There shall also be credited to the Guaranty and Indemnity 
Fund— 
"(A) for each loan closed during fiscal year 1990 with respect 
to which the Guaranty and Indemnity Fund is available, an 
amount equal to 0.375 percent of the original amount of such 
loan for each of the fisc^ years 1991 and 1992; 
"(B) for each loan closed after fiscal year 1990 with respect to 
which the Guaranty and Indemnity Fund is available, an 
amount equal to 0.25 percent of the original amount of such 
loan for each of the three fiscal years beginning with the fiscal 
year in which such loan is closed; 
"(C) all collections of principal and interest and the proceeds 
from the use or sale of property which secured a loan with 
respect to which the Guaranty and Indemnity Fund is available; 
' (D) amounts required to be credited under subsections (aX3) 
and (cX2), including amounts credited pursuant to subsections 
(aX4) and (cX3), of section 1829 of this title; 
"(E) fees collected under section 18290t>) of this title with 
respect to guaranteed or insured loans that are closed after 
December 31,1989, and subsequently assumed; and 
"(F) all income from the investments described in subsection 
(d) of this section. 
"(dXD The Secretary of the Treasury shall invest the portion of Securities. 
the Guaranty and Indemnity Fund that is not required to meet 
current pa3mients made from such Fund, as determined by the 
Secretary of Veterans Affairs, in obligations of the United States or 
in obligations guaranteed as to principal and interest by the United 
States. 
"(2) In making investments under paragraph (1) of this subsection, 
the Secretary of the Treasury shall select obligations having matu-
103 STAT. 2070 
PUBLIC LAW 101-237—DEC. 18, 1989 
rities suitable to the needs of the Guaranty and Indemnity Fund, as 
determined by the Secretary of Veterans Affairs, and bearing in-
terest at suitable rates, as determined by the Secretary of the 
Treasury, taking into consideration current market yields on 
outstanding marketable obligations of the United States of 
comparable maturities. 
"(eXD Notwithstanding subsection (b) of this section, the Guar-
anty £md Indemnity Fund shall be available to the Secretary, to 
such extent as is, or in such amounts as are, provided for in 
appropriation Acts and subject to paragraph (2) of this subsection, 
for— 
Contracts. 
"(A) contracts for the performance of supplementary services 
described in paragraph (2) of section 1824(e) of this title for 
which the Secretary is otherwise authorized to contract; and 
"(B) the acquisition of supplementary equipment described in 
such paragraph, 
(not including services or equipment for which the Guaranty and 
Indemnity Fund is available under subsection (b) of this section), as 
the Secretary determines would assist in ensuring the long-term 
stability and solvency of the Guaranty and Indemnity Fund. 
"(2) The Secretary may not in any fiscal year obligate more than a 
total of $25,000,000 for services or equipment under this subsection 
and section 1824(e) of this title.". 
(2) Section 1824(eX3) is amended— 
(A) by inserting "a total o f before "$25,000,000"; and 
(B) by inserting "and section 1825(e) of this title" before the 
period. 
(3XA) The section heading of section 1824 is amended to read as 
follows: 
"§ 1824. Loan Guaranty Revolving Fund". 
(B) The table of sections at the beginning of chapter 37 is amended 
by striking out the items relating to sections 1824 and 1825 and 
inserting in lieu thereof the following: 
"1824. Loan Guaranty Revolving Fund. 
"1825. Guaranty and Indemnity Fund.". 
(b) ANNUAL SUBMISSION OF INFORMATION.—(1) Subchapter III of 
chapter 37 is amended by adding at the end the following new 
section: 
"§ 1834. Annual submission of information on the Loan Guaranty 
Revolving Fund and the Guaranty and Indemnity Fund 
"(a) In the documents providing detailed information on the 
budget for the Department of Veterans Affairs that the Secretary 
submits to the Congress in conjunction with the President's budget 
submission for each fiscal year pursuant to section 1105 of title 31, 
United States Code, the Secretary shall include— 
"(1) a description of the operations of the Loan Guaranty 
Revolving Fund and the Guaranty and Indemnity Fund during 
the fiscal year preceding the fiscal year in which such budget is 
submitted; and 
"(2) the needs of such funds, if any, for appropriations in— 
"(A) the fiscal year in which the budget is submitted; and 
"(B) the fiscal year for which the budget is submitted. 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2071 
"(b) The matters submitted under subsection (a) of this section 
shall include, with respect to each fund referred to in subsection (a), 
the following: 
"(1) Information and financial data on the operations of the 
fund during the fiscal year before the fiscal year in which such 
matters are submitted and estimated financial data and related 
information on the operation of the fund for— 
"(A) the fiscal year of the submission; and 
"(B) the fiscal year following the fiscal year of the sub-
mission. 
"(2) Estimates of the amount of revenues derived by the fund 
in the fiscal year preceding the fiscal year of the submission, in 
the fiscal year of the submission, and in the fiscal year following 
the fiscal year of the submission from each of the following 
sources: 
"(A) Fees collected under section 1829(a) of this title for 
each category of loan guaranteed, insured, or made under 
this chapter or collected under section 1829(b) of this title 
for assumed loans. 
"(B) Federal Government contributions made under 
clauses (A) and (B) of section 1825(cX2) of this title. 
"(C) Federal Government payments under subsections 
(aX3) and (cX2) of section 1829 of this title. 
"(D) Investment income. 
"(E) Sales of foreclosed properties. 
"(F) Loan sisset sales. 
"(G) Each additional source of revenue. 
"(3) Information, for each fiscal year referred to in paragraph 
(2) of this subsection, regarding the types of dispositions made 
and Emticipated to be made of defaults on loans guaranteed, 
insured, or made under this chapter, including the cost to the 
fund, and the numbers, of such types of dispositions.". 
(2) The table of sections at the beginning of chapter 37 is amended 
by inserting after the item relating to section 1833 the following new 
item: 
"1834. Annual submission of information on the Loan Guaranty Revolving Fund 
and the Guaranty and Indemnity Fund.". 
(c) CONFORMING AMENDMENTS.—Section 1824 is amended— 
(1) in subsection (b), by inserting before the period at the end 
of the first sentence the following: "and the operations carried 
out in connection with the Guaranty and Indemnity Fund 
established by section 1825 of this title"; and 
(2) in subsection (c)— 
(A) by inserting after "title" in clause (2) the following: 
"for loans closed before Januanr 1, 1990, except that fees 
collected (A) for £dl loans made tor any purpose specified in 
section 1812 of this title, or (B) under subsection (b) of such 
section 1829 for guaranteed or insured loans that are closed 
before January 1, 1990, and subsequently assumed shall 
also be deposited in the Fund"; and 
(B) by inserting after "under this chapter" in clause (3) 
the following: "(other than operations for which the Guar-
anty and Indemnity Fund established under section 1825 of 
this title is available)". 
SEC. 303. LOAN FEE. 
(a) IN GENERAL.—Section 1829 is amended to read as follows: 
103 STAT. 2072 
PUBLIC LAW 101-237—DEC. 18, 1989 
*'§ 1829. Loan fee 
"(aXl) Except as provided in subsection (cXD of this section, a fee 
shall be collected from each veteran obtaining a housing loan 
guaranteed, insured, or made under this chapter, and from each 
person obtaining a loan under section 1833(a) of this title, and no 
such loan may be guaranteed, insured, or made under this chapter 
until the fee payable under this section has been remitted to the 
Secretary. 
"(2) The amount of such fee shall be 1.25 percent of the total loan 
amount, except that— 
"(A) in the case of a loan made under section 1811 or 1833(a) 
of this title or for any purpose specified in section 1812 of this 
title, the amount of such fee shall be one percent of the total 
loan amount; 
"(B) in the case of a guaranteed or insured loan for a purchase 
* (except for a purchase referred to in section 1812(a) of this title), 
or for construction, with respect to which the veteran has made 
a downpayment of 5 percent or more, but less than 10 percent, 
of the total purchase price or construction cost, the amount of 
such fee shall be 0.75 percent of the total loan amount; and 
"(C) in the case of a guaranteed or insured loan for a purchase 
(except for a purchase referred to in section 1812(a) of this title), 
or for construction, with respect to which the veteran has made 
a downpayment of 10 percent or more of the total purchase 
price or construction cost, the amount of such fee shall be 0.50 
percent of the total loan amount. 
"(3) Except as provided in paragraph (4) of this subsection, there 
shall be credited to the Guaranty and Indemnity Fund (in addition 
to the amount required to be credited to such Fund under section 
1825(cX2) (A) or (B) of this title), on behalf of a veteran who has made 
a downpajonent described in paragraph (2XC) of this subsection, an 
amount equal to 0.25 percent of the total loan amount for the fiscal 
year in which the loan is closed and for the following fiscal year. 
"(4) Credits to the Guaranty and Indemnity Fund under para-
graph (3) of this subsection with respect to loans guaranteed or 
insured under this chapter that are closed during fiscal year 1990 
shall be made in October 1990 and October 1991. 
"(5) The amount of the fee to be collected under paragraph (1) of 
this subsection may be included in the loan and paid from the 
proceeds thereof. 
"0^) Except as provided in subsection (c) of this section, a fee shall 
be collected from a person assuming a loan to which section 1814 of 
this title applies. The amount of the fee shall be equal to 0.50 
percent of the balance of the loan on the date of the transfer of the 
property. 
"(cXD A fee may not be collected under this section from a veteran 
who is receiving compensation (or who but for the receipt of retire-
ment pay would be entitled to receive compensation) or from a 
surviving spouse of any veteran (including a person who died in the 
active military, naval, or air service) who died from a service-
connected disability. 
"(2) There shall be credited to the Guaranty and Indemnity Fund 
(in addition to the eunount required to be credited to such Fund 
under section 1825(cX2) (A) or (B) of this title and subsection (aX3) of 
this section), on behalf of a veteran or surviving spouse described in 
paragraph (1) of this subsection, an amount equal to the fee that, 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2073 
except for paragraph (1) of this subsection, would be collected from 
such veteran or surviving spouse. 
"(3) Credits to the Guaranty and Indemnity Fund under para-
graph (2) of this subsection with respect to loans guaranteed, in-
sured, or made under this chapter that are closed during fiscal year 
1990 shall be made in October 1990.". 
(b) EFFECTIVE DATE.—The amendments made by this section shall 
take effect on January 1,1990. 
(c) FEE COLLECTION THROUGH 1989.—Notwithstanding any other 
provision of law, the Secretary of Veterans Affairs shall collect fees 
under section 1829 of title 38, United States Code, through Decem-
ber 31,1989. 
SEC. 304. INDEMNIFICATION AFTER DEFAULT. 
(a) IN GENERAL.—Section 1803 is amended by adding at the end 
the following new subsection: 
"(eXD Except as provided in paragraph (2) of this subsection, an 
individual who pa3rs a fee under section 1829 of this title, or who is 
exempted under section 1829(cXl) of this title from pa)ring such fee, 
with respect to a housing loan guaranteed or insured under this 
chapter that is closed after December 31, 1989, shall have no liabil-
ity to the Secretary with respect to the loan for any loss resulting 
from any default of such individual except in the case of fraud, 
misrepresentation, or bad faith by such individual in obtaining the 
loan or in connection with the loan default. 
"(2) The exemption from liability provided by paragraph (1) of this 
subsection shcdl not apply to— 
"(A) an individual from whom a fee is collected (or who is 
exempted from such fee) under section 1829G)) of this title; or 
"(B) a loan made for any purpose specified in section 1812 of 
this title.". 
(b) CONFORMING 
AMENDMENT.—The last sentence of section 
1832(aXl) is amended by striking out "If and inserting in lieu 
thereof "Except as provided in section 1803(e) of this title, if. 
SEC. 305. SALE OF VENDEE LOANS. 
(a) IN GENERAL.—Section 1833 is amended— 
(1) in subsection (aX3)— 
(A) in subparagraph (A), by striking out "Before Octo-
ber 1, 1990, 
and inserting in lieu thereof "Subject to 
subparagraph (C) of this paragraph,"; 
(B) in subpareigraph (B), by striking out "occurring before 
October 1,1990"; and 
(C) in subparagraph (C), by striking out "October 1,1990," 
and inserting in lieu thereof "October 1,1989,"; 
(2) in subsection (aX6), by striking out "October 1" and insert-
ing in lieu thereof "E)ecember 31"; and 
(3) by adding at the end the following new subsection: 
"(e) Notwithstajnding any other provision of law, the amount 
received from the sale of any note evidencing a loan secured by reed 
property described in subsection (aXD of this section shall be cred-
ited, without any reduction and for the fiscal year in which the 
amount is received, as offsetting collections of— 
"(1) the revolving fund for which a fee under section 1829 of 
this title was collected (or was exempted from being collected) at 
the time of the original guaranty of the loan that was secured 
by the same property; or 
38 use 1829 
note. 
38 use 1829 
note. 
Fraud. 
Real property. 
103 STAT. 2074 
PUBLIC LAW 101-237—DEC. 18, 1989 
''(2) in any case in which there was no requirement of (or 
exemption from) a fee at the time of the original guaranty of Uie 
loan that was secured by the same property, the Loan Guaranty 
Revolving Fund; and 
the total so credited to any revolving fund for a fiscal year shall 
offset outlays attributed to such revolving fund during such fiscal 
year.". 
38 use 1833 
(b) EFPECTIVB DATES.—(D If, before the date and time of the 
^°*^- 
enactment of this Act, no provision of law has been enacted amend-
ing section 1833 of title 38, United States Code, by adding a new 
subsection (e) with a text substantively identical to the text of the 
new subsection (e) added to such section 1833 by subsection (aX3) of 
this section, the provisions of subsection (aXD of this section amend-
ing subsection (aX3) of such section 1833 shall not take effect. 
(2) Subsection (e) of section 1833 of such title 38, as added by 
subsection (aX3), shall apply with respect to amounts referred to in 
such subsection (e) received after September 30,1989. 
SEC 306. INCREASE IN ENTITLEMENT AMOUNT. 
(a) INCREASED ENTITLEMENT.—Section 1803(aXl) is amended— 
(1) in subparagraph (AXi>— 
(A) by striking out "or" after the semicolon in subclause 
(D;and 
(B) by striking out subclause (ID and inserting in lieu 
thereof the following: 
"(ID in the case of any loan of more than $45,000, but not 
more than $56,250, $22,500; 
"(in) in the case of any loan of more than $56,250, but not 
more than $144,000, the lesser of $36,000 or 40 percent of the 
loan; or 
"(IV) in the case of any loan of more than $144,000 for a 
purpose specified in clause (1), (2), (3), or (6) of section 1810(a) of 
this title, the lesser of $46,000 or 25 percent of the loan; or"; and 
(2) in subparagraph (B), by striking out "$36,000" and insert-
ing in lieu tiiereof $36,000, or in the case of a loan described in 
subparagraph (AXiXIV) of this paragraph, $46,000,". 
38 use 1803 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
^°^- 
shall take effect on the date of the enactment of tins Act and shall 
apply only with respect to loans closed after such date. 
SEC. 307. NOTIFICATION REQUIREMENT. 
Section 1832(a) is amended by adding at the end the following: 
"(5) In the event of default in the payment of any loan guaranteed 
or insured under this chapter in which a partial payment has been 
tendered bv the veteran concerned and refused by the holder, the 
holder of the obligation shall notify the Secretary as soon as such 
payment has been refused. The Secretary may require that any such 
notification include a statement of the circumstances of the default, 
the amount tendered, the amount of the indebtedness on the date of 
the tender, and the reasons for the holder's refusal.". 
SEC 308. NO-BID FORMULA. 
(a) EXCLUSION OF INTEREST Ck)STS.—Section 1832(cXlXCXii) is 
amended by inserting before the period the following: ", excluding 
any amount attributed to the cost to the Government of borrowing 
funds". 
38 use 1832 
note. 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2075 
(b) EXTENSION.—(1) Section 1832(cXll) of such title is amended by 
striking out "October 1, 1989" and inserting in lieu thereof 
"October 1,1991". 
(2) The amendment made by paragraph (1) shall take effect as of fS?c^® o
o
o
®
' 
October 1,1989. 
SEC. 309. REFINANCING LOANS. 
(a) REPEAL OF LIMITATION ON AMOUNT OF REFINANCING LOAN.— 
Section 1810 is amended by striking out subsection (h). 
(b) CONDITIONS FOR GUARANTEEING OR MAKING A REFINANCING 
LOAN.—Subsection (b) of section 1810 is amended— 
(1) in clause (5)— 
(A) by inserting "except in the case of a loan described in 
clause (7) or (8) of this subsection," after "(5)"; and 
(B) by striking out "and," at the end; 
(2) by striking out the period at the end of clause (6) and 
inserting in lieu thereof a semicolon; and 
(3) by adding at the end the following new clauses: 
"(7) in the case of a loan (other than a loan made for a 
purpose specified in subsection (aX8) of this section) that is made 
to refinance— 
"(A) a construction loan, 
"(B) an installment land sales contract, or 
"(C) a loan assumed by the veteran that provides for a 
lower interest rate than the loan being refinanced, 
the amount of the loan to be guaranteed or made does not 
exceed the lesser of— 
"(i) the reasonable value of the dwelling or farm resi-
dence securing the loan, as determined pursuant to section 
1831 ofthis title; or 
"(ii) the sum of the outstanding balance on the loan to be 
refinanced and the closing costs (including discounts) actu-
ally paid by the veteran, as specified by the Secretary in 
regulations; and 
"(8) in the case of a loan to refinance a loan (other than a loan 
or installment sales contract described in clause (7) of this 
subsection or a loan made for a purpose specified in subsection 
(aX8) of this section), the amount of the loan to be guaranteed or 
made does not exceed 90 percent of the reasonable value of the 
dwelling or farm residence securing the loan, as determined 
pursuant to section 1831 ofthis title. . 
SEC. 310. COMPUTATION OF ENTITLEMENT AMOUNT. 
Section 18020t)) is amended— 
(1) by striking out "or" at the end of clause (1)(B); 
(2) by striking out the period at the end of clause (2) and 
inserting in lieu thereof "; or"; and 
(3) by inserting after clause (2) the following new clause: 
"(3XA) the lo£in has been repaid in full; and 
"(B) the loan for which the veteran seeks to use entitlement 
under this chapter is secured by the same property which 
secured the loan referred to in subparagraph (A) of this 
paragraph.". 
SEC. 311. WAIVER OF INDEBTEDNESS TO THE UNITED STATES. 
Section 3102 is amended— 
103 STAT. 2076 
PUBLIC LAW 101-237—DEC. 18, 1989 
(1) in subsection (b), by striking out "may" and inserting in 
lieu thereof "shall, except as provided in subsection (c) of this 
section,"; and 
(2) in subsection (c)— 
(A) by striking out "The" and all that follows through 
"thereon)" and inserting in lieu thereof "The recovery of 
any pajonent or the collection of £iny indebtedness (or anv 
interest thereon) may not be waived under this section'; 
and 
(B) by striking out ", material fault, or lack of good faith" 
and inserting in lieu thereof "or bad faith". 
SEC. 312. STUDY OF HOME LOANS TO NATIVE-AMERICAN VETERANS. 
(a) IN GENERAL.—The Secretary of Veterans Affairs and the Sec-
retary of the Interior shall jointly conduct a study to determine the 
following: 
(1) The extent to which veterans who are Native Americans 
living on Native-American trust lands participate in the 
Department of Veterans Affairs home loan guaranty program 
under chapter 37 of title 38, United States Code. 
(2) The level of participation of such veterans in such pro-
gram, whether such participation is lower th£in the level of 
participation of all veterans and, if so, the reasons for the lower 
level of participation, including any reasons relating to the 
structure of the home loan guaranty program, the secondary 
mortgage market, the willingness of lenders to make home 
loans on trust land, cultural factors, and attitudinal factors. 
(3) The legislative, regulatory, and administrative actions 
necessary, if any, to improve the access of the veterans referred 
to in paragraph (1) to benefits under chapter 37 of title 38, 
United States Code. 
(4) Whether it would be desirable, feasible, and equitable to 
utilize the direct home loan authority under section 1811 of title 
38, United States Code, to promote increased home ownership 
among such veterans. 
(b) CONSIDERATIONS.—In conducting the study, the Secretaries 
shall consider— 
(1) the concerns and recommendations of the Advisory 
Committee on Native-American Veterans contained in the re-
ports submitted by that committee pursuant to section 19032(f) 
of the Veterans' Health-Care Amendments of 1986 (title XIX of 
Public Law 99-272; 100 Stat. 388); 
(2) the experience of the Bureau of Indian Affairs and the 
Department of Housing and Urban Development in developing 
and carrying out programs designed to meet the home financing 
needs of Native Americans; and 
(3) any experience of private-sector lending institutions in 
making loans on trust land. 
(c) REPORT.—Not later than June 1, 1990, the Secretaries shall 
transmit to the Committees on Veterans' Affairs of the Senate and 
House of Representatives a report on the results of the study 
conducted under subsection (a). 
(d) DEFINITIONS.—For the purposes of this section— 
(1) the term "Native-American trust land" means any land 
that— 
(A) is held in trust by the United States for Native 
Americans; 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2077 
(B) is subject to restrictions on alienation imposed by the 
United States on Indian lands; 
(C) is owned by a Regional Corporation or a village 
corporation, as such terms are defined in section 3(b) of the 
Alaska Native Claims Settlement Act (43 U.S.C. 1602(b)); or 
(D) is on any island in the Pacific Ocean if such land is, by 
cultural tradition, communally-owned land, as determined 
by the Secretary of Veterans Affairs; and 
(2) the term "Native American" means— 
(A) an Indian, as defined in section 4(d) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 
450b(d)); 
(B) a Native Hawaiian, as defined in section 8 of the 
Native Hawcdian Health Care Act of 1988 (Public Law 
100-579; 102 Stat. 2921); 
(C) an Alaska Native, within the meaning provided for 
the term "Native" in section 3(b) of the Aleuska Native 
Claims Settlement Act (43 U.S.C. 1602(b)); and 
(D) a Pacific Islander, within the meaning of the Native 
American Programs Act of 1974 (42 U.S.C. 2991 et seq.). 
SEC. 313. CLARIFYING AND TECHNICAL AMENDMENTS. 
(a) CLARIFYING AMENDMENT.—Section 1801(b) is £unended by 
adding at the end the following new paragraph: 
"(4) The term 'veteran' also includes an individual serving on 
active duty.". 
(b) TECHNICAL AMENDMENTS.—Title 38 is amended as follows: 
(1) Chapters 23, 24, and 37 are amended by striking out 
"Administrator" and "Administrator's" each place such terms 
appear (other than in sections 906(eX2) and 1812(hX2XB) and in 
section 1845(a) the third place "Administrator" appears) and 
inserting in lieu thereof "Secretary" and "Secretary's", 
respectively. 
(2) Subchapter III of chapter 37 is amended by striking out 
"Veterans' Administration and "Veterans' Administration's" 
each place such terms appear and inserting in lieu thereof 
"Department of Veterans Affairs" and "Department of Veter-
ans Affairs'", respectively. 
(3) Section 906(eX2) is amended by striking out "Adminis-
trator or the Secretary" and inserting in lieu thereof "Secretary 
of Veterans Affairs or Secretary of the Army". 
(4) Section 1005(a) is amended by inserting "of the Interior" 
after "Secretary" the second place it appears. 
(5) Section 10090)) is amended by inserting "of the Army" 
after "Secretary". 
(6) Section 1803(cXl) is amended by inserting "of Housing and 
Urban Development" after "Secretary" the second place it 
appears. 
(7) Section 1812(hX2XB) is amended— 
(A) by striking out "Secretary pursuant" and inserting in 
lieu thereof "Secretary of Housing £Uid Urban Development 
pursuant"; and 
(B) by striking out "Administrator" each place it appears 
and inserting in lieu thereof "Secretary of Veterans 
Affairs". 
(8) Section 1823(a) is amended by inserting "of the Treasury" 
after "Secretary" the last place it appears. 
103 STAT. 2078 
PUBLIC LAW 101-237—DEC. 18, 1989 
Veterans 
Education and 
Employment 
Amendments of 
1989 
38 u s e 101 note. 
(9) Section 1823(dX2) is amended by inserting "of the Treas-
ury" after "Secretary". 
TITLE IV—EDUCATION AND EMPLOYMENT 
SEC. 401. SHORT TITLE. 
This title may be cited as the "Veterans Education and Employ-
ment Amendments of 1989". 
SEC. 402. RATES OF REHABILITATION SUBSISTENCE ALLOWANCES FOR 
VETERANS WITH SERVICE-CONNECTED DISABILITIES. 
(a) IN GENERAL.—The table contained in section 1508(b) is 
amended to read as follows: 
"Column I 
Column II 
Column III 
Column IV 
Column V 
Type of program 
No 
dependents 
One 
dependent 
More than 
dependents 
jepe^ndents 
Two 
Institutional training: 
Full-time..... 
$333 
$413 
Three^uarter time 
$250 
$310 
Half-time 
$167 
$207 
Farm cooperative, appren-
tice, 
or 
other 
on-job 
training: 
Full-time 
$291 
$352 
Extended evaluation: 
Full-time 
$333 
$413 
Independent living train-
ing: 
Full-time 
$333 
$413 
ThreeKiuarter time 
$250 
$310 
Half-time 
$167 
$207 
$405 
$486 
$486 
$364 
$244 
The amount 
in column 
rV, plus the 
following 
for each 
dependent 
in excess of 
two: 
$486 
$35 
$364 
$27 
$244 
$18 
$26 
$35 
$35 
$27 
$18" 
38 u s e 1508 
note. 
(b) EFFECTIVE DATE.—The amendment made by this section shall 
take effect on January 1,1990. 
SEC. 403. RATES OF EDUCATIONAL ASSISTANCE FOR SURVIVORS AND 
DEPENDENTS. 
(a) IN GENERAL.—Chapter 35 is amended— 
(1) in section 1732(aXl), bv striking out "computed" and all 
that follows through the end of the paragraph and inserting in 
lieu thereof "paid at the monthly rate of $404 for full-time, $304 
for three-quarter-time, or $202 for half-time pursuit."; 
(2) in section 1732(aX2), bv striking out computed" and all 
that follows through the ena of the paragraph and inserting in 
lieu thereof "paid at the rate of (A) the established charges for 
tuition and fees that the educational institution involved re-
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2079 
quires similarly circumstanced nonveterans enrolled in the 
same program to pay, or (B) $404 per month for a full-time 
course, wWchever is the lesser."; 
(3) in section 1732(b), by striking out "$304" and inserting in 
lieu thereof "$327"; 
(4) in section 1732(cX2), by striking out "computed" and all 
that follows through the end of the paragraph and inserting in 
lieu thereof "$327 for full-time, $245 for three-quarter-time, and 
$163 for half-time pursuit."; 
(5) by amending section 1732(cX3) to read as follows: 
"(3) The monthly educational assistance allowance to be paid on 
beludf of an eligible person pursuing an independent study program 
which leads to a standard college degree shall be computed at the 
rate provided in subsection (aX2) of this section for less than half-
time but more than quarter-time pursuit. If the entire training is to 
be pursued by independent study, the amoimt of the eligible per-
son s entitlement to educational assistance under this chapter shall 
be charged in accordance with the rate at which such person is 
pursuing the independent study program but at not more than the 
rate at which such entitlement is charged for pursuit of such 
program on less than a half-time basis. In any case in which 
independent study is combined with resident training, the edu-
cational assistance allowance shall be paid at the applicable institu-
tional rate based on the total training time determined by adding 
the number of semester hours (or the equivalent thereof) of resident 
training to the number of semester hours (or the equivalent thereof) 
of independent study that do not exceed the number of semester 
hours (or the equivalent thereof) required for the less than half-time 
institutional rate, as determined by the Secretary of Veterans Af-
fairs, for resident training. An eligible person's entitlement shall be 
charged for a combination of independent study and resident train-
ing on the basis of the applicable monthly training time rate as 
determined under section 1788 of this title."; 
(6) in section 1732(cX4), by striking out "section 1682(e) of this 
title" and inserting in lieu thereof "paragraph (3) of this 
subsection"; 
(7) in section 1732(e), by inserting before the period the follow-
ing; ", except that the references therein to the monthly edu-
cational assistance allowance prescribed for a veteran with no 
dependents shall be deemed to refer to the applicable allowance 
payable to an eligible person under corresponding provisions of 
this chapter or chapter 36 of this title, as determined by the 
Secretary of Veterans AfFsdrs"; 
(8) in section 1733(aXl)> by striking out "benefits" and all that 
follows through the end of the paragraph and inserting in lieu 
thereof "assistance provided an eligible veteran under section 
1691(a) (if pursued in a State) of this title and be paid an 
educational assistance allowance therefor in the manner pre-
scribed by section 1691(b) of this title, except that the cor-
responding rate provisions of this chapter shall apply, as deter-
mined by the Secretary of Veterans Affairs, to such pursuit by 
an eligible person."; 
(9) in section 1734(b), by striking out "1786 of this title" and 
inserting in lieu thereof "1786 (other than subsection (aX2)) of 
this title and the period of such spouse's entitlement shall be 
charged with one month for each $404 which is paid to the 
103 STAT. 2080 
PUBLIC LAW 101-237—DEC. 18, 1989 
spouse as an educational assistance allowance for such course''; 
and 
(10) in section 1742(aX by striking out "$376'\ "$119" (each 
place it appears), and "$12.58" and inserting in lieu thereof 
'^$404". "$1§7", and "$13.46", respectively, 
(b) APPRENTICESHIP.—Section 1787(DX2) is amended bv striking out 
"computed" and all that follows through the end of the paragraph 
^ 
and inserting in lieu thereof "$294 for the first six months, $220 for 
the second six months, $146 for the third six months, and $73 for the 
fourth and any succeeding six-month periods of training.". 
38 use 1732 
(c) E
F
F
E
C
T
I
V
E DATE.->'m6'mmendments made by this section shall 
^o*® 
take effect on January 1,1990. 
SEC 404. PROVISION FOR PERMANENT PROGRAM OF INDEPENDENT 
LIVING SERVICES AND ASSISTANCE. 
Section 1520 is amended— 
:; 
(1) by striking out subsection 0>); 
(2) by striking out paragraph (5) of subsection (a); 
(3) by redesignating paragraphs (2), (3), (4), (6) and (7) of 
subsection (a) as subsections (b), (c), (d), (e) and (f), respectively; 
(4) in subsection (a>— 
(A) by striking out "(1) During fiscal years 1982 through 
1989, the" and inserting in lieu thereof 'The"; 
(B) by striking out "paragraph (7) of this subsection" and 
inserting in lieu thereof "subsection (f) of this section": and 
_ 
(Q by striking out "paragraph (2) of this subsection and 
inserting in lieu thereof subsection (b) of this section"; 
(5) in subsection 0>), as redesignated by clause (3), by striking 
out "and who is selected" and all that follows through "subsec-
tion"; 
(6) in subsection (c), as redesignated by clause (3), by striking 
out "paragraph (2) of this subsection and inserting in lieu 
thereof "subsection (b) of this section": 
(7) in subsection (e), as redesignated by clause (3), l^ striking 
oui "of the fiscal years 1982 through 1989" and insertmg in lieu 
thereof "fiscal year"; and 
(8) in subsection (f), as redesignated by clause (3)— 
(A) by striking out "paragraph" and inserting in lieu 
thereof "subsection"; and 
(B) by striking out "(A)" and "(B)" and inserting in lieu 
thereof "(1)" an? "(2)", respectively. 
SEC 405. VETERANS'AND RESERVISTS'WORK-STUDY PROGRAM. 
(a) CRITERIA FOR DETERMINING WORK-STUDY ALLOWANCE.—<1) Sec-
tion 1685(a) is amended— 
(A) in the second sentence, by striking out "Such" and all that 
follows through "other applicable enrollment period," and 
inserting in lieu thereof "Such work-study allowance shall be 
paid in an amount equal to the applicable hourly minimum 
wa^e times the number of hours worked during the applicable 
^ 
period, in return for such individual's agreement to perform 
services, during or between periods of enrollment, aggregating 
not more than a number of hours equal to 25 times the number 
of weeks in the semester or other applicable enrollment 
period,"; 
(B) by striking out the third and fourth sentences; 
(C) by inserting "(1)" after "(a)"; and 
* 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2081 
(D) by adding at the end the following new paragraph: 
"(2) For the purposes of paragraph (1) of this subsection, the term 
'applicable hourly minimum wage means (A) the hourly minimum 
wage under section 6(a) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 206(a)), or (B) the hourly minimum wage under comparable 
law of the State in which the services are to be performed, if such 
wage is higher than the wage referred to in clause (A) and the 
Secretary has made a determination to pay such higher wage.". 
(2) Section 1685(b) is amended by striking out "subsection (a)" and 
inserting in lieu thereof "subsection (aXD". 
O
t
)
) SELECTED RESERVISTS' WORK-STUDY ASSIGNMENTS.—The second 
sentence of section 1685(a), as amended by subsection (aXlXA), is 
further amended— 
(1) in clause (3), by striking out "or" at the end; and 
(2) by striking out the period at the end and inserting in lieu 
thereof ", or (5) in the case of an individual who is receiving 
educational assistance under chapter 106 of title 10, activities 
relating to the administration of such chapter at Department of 
Defense facilities.". 
(c) EuGiBiUTY.—Section 1685(b) is amended— 
(1) in the first sentence by striking out "veteran-students who 
are pursuing" and all that follows through the period and 
inserting in lieu thereof "individuals who are pursuing pro-
grams of rehabilitation, education, or training under chapter 30, 
31, 32, or 34 of this title or chapter 106 of title 10, at a rate equal 
^ 
to at least three-quarters of that required of a full-time stu-
dent"; and 
(2) in the last sentence bv striking out "the veteran ceases to 
be" through "the veteran and inserting in lieu thereof "an 
individual ceases to be at least a three-quarter-time student 
before completing such agreement, the individual". 
(d) TECHNICAL AMENDMENTS.—(1) Section 1685(b) is amended bv 
striking out "per centum" and inserting in lieu thereof "percent'. 
(2) Section 1685 is amended— 
(A) by striking out "Veteran-students" in subsection (a) and 
inserting in lieu thereof "Individuals"; 
(B) by striking out "veteran-students" each place it appears 
and inserting in lieu thereof "individuals"; 
(C) by striking out "A veteran-student" in subsection (a) and 
inserting in lieu thereof "An individual"; 
(D) by striking out "veteran-student's" in subsection (a) and 
inserting in lieu thereof "individual's"; 
(E) by striking out "veterans" in subsection (c) and inserting 
in lieu thereof "individuals"; 
(F) by striking out "veteran" each place it appears, other than 
in subsection (cX4), and inserting in lieu thereof "individual"; 
anc 
(G) by striking out "veteran's" in subsection (cX2) and insert-
ing in lieu thereof "individual's". 
(3) Section 2136(b) of title 10, United States Code, is amended by 
striking out "and 1683" and inserting in lieu thereof "1683, and 
1685". 
(4XA) The section heading of section 1685 is amended to read as 
follows: 
103 STAT. 2082 
PUBLIC LAW 101-237—DEC. 18, 1989 
"§ 1685. Work-study allowance". 
(6) The table of sections at the beginning of chapter 34 is amended 
by striking out the item for section 1685 and inserting in lieu thereof 
the following: 
"1685. Work-study allowance.". 
10 use 2136 
(e) EFFECTIVE DATE.—The amendments made by this section shall 
"°*®- 
take effect on May 1,1990, and shall apply to services performed on 
or after that date. 
SEC. 406. WORK-STUDY PROGRAM FOR SURVIVORS AND DEPENDENTS. 
(a) IN GENERAL.—(1) Subchapter IV of chapter 35 is amended by 
inserting after section 1736 the following new section: 
"§ 1737. Work-study allowance 
"(a) Subject to subsection (b) of this section, the Secretary shall 
utilize, in connection with the activities described in section 1685(a) 
of this title, the services of any eligible person who is pursuing, in a 
State, at least a three-quarter-time program of education (other 
than a course of special restorative training) and shall pay to such 
person an additional educational assistance allowance (hereafter in 
this section referred to as 'work-study allowance') in return for such 
eligible person's agreement to perform such services. The amount of 
the work-study allowance shall be determined in accordance with 
section 1685(a) of this title. 
"(b) The Secretary's utilization of, and payment of a work-study 
allowance for, the services of an eligible person pursuant to subsec-
tion (a) of this section shall be subject to the same requirements, 
terms, and conditions as are set out in section 1685 of this title with 
regard to individuals pursuing at least three-quarter-time programs 
of education referred to in subsection (b) of such section.". 
(2) The table of sections at the beginning of chapter 35 is amended 
by inserting after the item relating to section 1736 the following new 
item: 
"1737. Work-study allowance.". 
38 use 1737 
(b) EFFECTIVE DATE.—The amendments made by this section shall 
note. 
take effect on May 1,1990. 
SEC. 407. EXTENSION AND EXPANSION OF THE VETERANS' READJUST-
MENT APPOINTMENT AUTHORITY. 
(a) EXTENSION OF AUTHORITY.—(1) Paragraph (2) of section 2014(b) 
is redesignated as paragraph (4) and is amended by striking out 
"1989" and inserting in lieu thereof "1993". 
(2) Section 2011(2XB) is amended by inserting before the period the 
following: "except for purposes of section 2014 of this title". 
Vietnam. 
(b) EuGiBiUTY.—(1) Section 2014(aXl) is amended by striking out 
"qualified disabled veterans and veterans of the Vietnam era' and 
inserting in lieu thereof "certein veterans of the Vietnam era and 
veterans of the post-Vietnam era who are qualified for such employ-
ment and advancement". 
(2) Subsection (b) of section 2014 is amended— 
(A) in paragraph (1)— 
(i) by striking out "veterans of the Vietnam era" and 
inserting in lieu thereof "veterans referred to in paragraph 
(2) of this subsection"; 
^ 
(ii) in clause (A), by inserting the following before the 
semicolon: "or in the case of a veteran referred to in 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2083 
paragraph (2XA) of this subsection, the level of GS-11 or its 
' 
equivalent"; 
(iii) by striking out clause (B) and inserting in lieu thereof 
the following: 
"(B) a veteran referred to in paragraph (2) of this subsection 
shall be eligible for such an appointment during (i) the four-year 
period beginning on the date of the veteran's last discharge or 
release from active duty, or (ii) the two-year period beginning on 
the date of the enactment of the Veterans Education and 
Employment Amendments of 1989, whichever ends later;"; 
(iv) in clause (C), by inserting "referred to in paragraph 
(2) of this subsection" after "a veteran of the Vietnam era"; 
(v) by striking out "and" at the end of clause (C); 
(vi) by striking out the period at the end of clause (D) and 
inserting in lieu thereof ; and"; and 
(vii) by adding after clause (D) the following new clauses: 
"(E) the requirement of an educational or training program 
for a veteran receiving such an appointment shall not apply if 
the veteran has 15 years or more of education; and 
"(F) in the case of a veteran who is not a disabled veteran, the 
veteran may not have completed more than 16 years of edu-
cation at the time of the veteran's appointment."; and 
(B) by inserting after paragraph (1) the following new para-
grapha: 
"(2) lliis subsection applies to— 
"(A) a veteran of the Vietnam era who— 
"(i) has a service-connected disability; or 
I, 
"(ii) during such era, served on active duty in the Armed 
r
^ 
Forces in a campaign or expedition for which a campaign 
; 
badge has been authorized; and 
"(B) a veteran who served on active duty after the Vietnam 
era. 
"(3) For purposes of paragraph (l)(BXi) of this subsection, the last 
discharge or release from a period of active duty shall not include 
any discharge or release from a period of active duty of less than 90 
da3rs of continuous service unless the individual involved is dis-
charged or released for a service-connected disability, for a medical 
condition which preexisted such service and which the Secretary 
determines is not service connected, for hardship, or as a result of a 
reduction in force as described in section 1411(a)(lXAXii)(ni) of this 
title.". 
(c) ErFEcrrvE DATE.—The amendments made by this section shall 
38 USC 2011 
take effect on January 1,1990. 
^o^ 
SEC. 408. PILOT PROGRAM TO FURNISH EMPLOYMENT AND TRAINING 
38 USC 2000 
INFORMATION AND SERVICES TO MEMBERS OF THE ARMED 
note. 
FORCES SEPARATING FROM THE ARMED FORCES. 
(a) REQUIREMENT FOR PROGRAM.—During the three^ear period 
be^ning on January 1, 1990, the Secretary of Labor (hereafter in 
this section referred to as the "Secretary"), in conjunction with the 
Secretary of Veterans Affairs and the Secretary of Defense, shall 
< 
conduct a pilot program to furnish employment and training 
information and services to members of the Armed Forces within 
180 days before such members are separated from the Armed 
Forces. 
(b) AREAS TO BE COVERED BY THE PROGRAM.—The Secretary shall 
conduct the pilot program in at least five, but not more than ten. 
103 STAT. 2084 
PUBLIC LAW 101-237—DEC. 18, 1989 
geographically dispersed States in which the Secretary determines 
that emplojrment and trsiining services to eligible veterans will not 
be unduly limited by the provision of such services to members of 
the Armed Forces under the pilot program. 
(c) UTIUZATION OF SPECIFIC PERSONNEL.—The Secretary shall uti-
lize disabled veterans' outreach program specialists or local veter-
ans' employment representatives to the maximum extent feasible to 
furnish emplojnnent and training information and services under 
the pilot program. 
(d) REPORT.—Not later than May 1, 1992, the Secretary shall 
transmit to the Committees on Veterans' Affairs of the Senate and 
House of Representatives a report on the findings and conclusions 
reached as a result of such pilot program. 
SEC. 409. SECONDARY SCHOOL REQUIREMENTS FOR MONTGOMERY GI 
- 
BILL ELIGIBILITY. 
Sections 1411(aX2) and 1412(aX2) are amended— 
(1) by inserting "(i)" after "except that"; and 
(2) by inserting before "; and" at the end the following: ", and 
(ii) an individual described in clause (IXA) of this subsection 
may meet such requirement by having successfully completed 
the equivalent of such 12 semester hours before the end of the 
individual's initial obligated period of active duty". 
SEC. 410. PROHIBITION ON RECEIVING CREDIT UNDER TWO PROGRAMS. 
Section 1621 is amended by adding at the end the following: 
"(f) An individual who serves in the Selected Reserve may not 
receive credit for such service under both the program established 
by this chapter and the program established by chapter 106 of title 
10 but shall elect (in such form and manner as the Secretary of 
Veterans Affairs may prescribe) the program to which such service 
is to be credited.". 
SEC. 411. ACCEPTING SCHOOL CERTIFICATION FOR RENEWAL OF EDU-
CATIONAL BENEFITS AFTER UNSATISFACTORY PROGRESS. 
(a) VETERANS' EDUCATIONAL ASSISTANCE.—Section 1674 is amend-
ed by striking out clauses (1) and (2) and inserting in lieu thereof the 
following: 
"(1) the veteran will be resuming enrollment at the same 
educational institution in the same program of education and 
the educational institution has both approved such veteran's 
reenroUment and certified it to the Department of Veterans 
Affairs; or 
"(2) in the case of a proposed change of either educational 
., institution or program of education by the veteran— 
"(A) the cause of the unsatisfactory attendance, conduct, 
or progress has been removed; 
(B) the program proposed to be pursued is suitable to the 
veteran's aptitudes, interests, and abilities; and 
"(C) if a proposed change of program is involved, the 
change meets the requirements for approval under section 
1791 of this title.". 
(b) SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE.—Sec-
tion 1724 is amended by striking out clauses (1) and (2) and inserting 
in lieu thereof the following: 
"(1) the eligible person will be resuming enrollment at the 
same educational institution in the same program of education 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2085 
and the educational institution has both approved such eligible 
person's reenrollment and certified it to the Department of 
Veterans Affairs; or 
"(2) in the case of a proposed change of either educational 
institution or program of education by the eligible person— 
"(A) the cause of the unsatisfactory attendance, conduct, 
or progress has been removed; 
(B) the program proposed to be pursued is suitable to the 
eligible person's aptitudes, interests, and abilities; and 
(C) tf a proposed change of program is involved, the 
change meets the requirements for approval under section 
1791 of this title.". 
SEC 412. UNIFORMITY OF ATTENDANCE REQUIREMENT. 
(a) IN GENERAL.—Section 1780(a) is amended— 
(1) in clause (1) of the second sentence, by striking out 
"enrolled in a course" through "1788(aX7) of this title,"; 
(2) by striking out clause (2) of the second sentence; 
(3) by redesignating clauses (3), (4), and (5) of the second 
sentence as clauses (2), (3), and (4), respectivelv; 
(4) in the third sentence, by striking out '^t forth in clause 
(1) or (2)" and inserting in lieu thereof "set forth in clause (1)"; 
(5) in subclause (A) of the third sentence, by striking out 
", and such periods" through "subsection"; and 
(6) in subclauses (B) and (C) of the third sentence by striking 
out", but such periods" through "subsection". 
(b) C
o
N
F
O
R
M
i
N
O AMENDMENTS.—Section 1674 and section 1724 are 
each amended by striking out "conduct" in the first sentence and 
inserting in lieu thereof "attendance, conduct,". 
SEC 413. PROGRAM ADMINISTRATION. 
(a) Section 1788 is amended— 
(1) in subsection (a), by inserting after "three hours" in clause 
(Q of the penultimate sentence the following: "(or three 
50-minute periods)"; and 
(2) in subsection (c), by inserting after "three hours" in the 
second sentence the following: "(or three 50-minute periods)". 
(b) Through July 1, 1990, no provision of law shall preclude the 38 use 1434 
Department of Veterans Affairs, in making determinations of the "°^-
active-duty or Selected Reserve status, or the character of service, of 
individuals receiving benefits under chapter 30 or 32 of title 38, 
United States Code, or chapter 106 of title 10, United States Code, 
from continuing to use any category of information provided by the 
Department of Defense or Department of Transportation that the 
Department of Veterans Affairs was using prior to the date of the 
enactment of this Act, if the Secretary of Veterans Affairs deter-
mines that the information has proven to be sufficiently reliable in 
making such determinations. 
SEC 414. FUNDING FOR STATE APPROVING AGENQES FOR TRAINING 
CURRICULUM DEVELOPMENT. 
Section 1774(a) is amended— 
(1) in paragraph (2XA), by striking out "section and for" and 
inserting in Ueu thereof "section, for expenses approved by the 
Secretary that are incurred in carrying out activities described 
in section 1774A(aX4) of this title (except for administrative 
overhead expenses allocated to such activities), and for"; and 
/ 
103 STAT. 2086 
PUBLIC LAW 101-237—DEC. 18, 1989 
•'''' 
(2) in paragraph (2XC), by inserting before the period the 
following: "and the amount of expenses approved by the Sec-
retary that are incurred in carrying out activities described in 
section 1774A(aX4) of this title for such period (except for 
administrative overhead expenses allocated to such activities)", 
SEC. 415. PROOF OF SATISFACTORY PURSUIT OF A PROGRAM OF 
EDUCATION. 
(a) WITHHOLDING OP BENEFITS; FORM OF PROOF.—Section 1780(g) is 
amended by striking out "the Administrator is authorized" in the 
second sentence and all that follows through the period at the end of 
that sentence and inserting in lieu thereof "the Secretary may 
withhold payment of benefits to such eligible veteran or eligible 
person until the required proof is received and the amount of the 
pajonent is appropriately adjusted. The Secretary may accept such 
veteran's or person's monthly certification of enrollment in and 
satisfactory pursuit of such veteran's or person's program as suffi-
cient proof of the certified matters.". 
(b) CONFORMING AMENDMENTS.—Section 1434 is amended— 
(1) in subsection (aXD, by striking out "1780(g),"; 
(2) by striking out subsection (b); and 
(3) by redesignating subsection (c) as subsection (b). 
SEC. 416. REPORTING FEES. 
(a) IN GENERAL.—Section 1784 is amended— 
(1) in subsection (aXl), by striking out "chapter 34" and 
inserting in lieu thereof "chapter 31, 34,"; 
(2) in subsection (b), by striking out "chapters 34" and insert-
ing in lieu thereof "chapters 31, 34"; and 
(3) in subsection (c), by striking out "chapter 34" each place it 
appears and inserting in lieu thereof "chapter 31, 34,". 
38 use 1784 
(b) EFFECTIVE DATE.—The amendments made by this section shall 
^°*^- 
take effect on January 1,1990. 
SEC. 417. CLOCK-HOUR MEASUREMENT OF CERTAIN UNIT COURSES OR 
SUBJECTS CREDITABLE TOWARD A STANDARD COLLEGE 
DEGREE. 
• '.-'•'- 
Section 1788(e) is amended to read as follows: 
"(eXD For the purpose of measuring clock hours of attendance or 
net of instruction under clause (1) or (2), respectively, of subsection 
(a) of this section for a course— 
"(A) which is offered by an institution of higher learning, and 
"(B) for which the institution requires one or more unit 
courses or subjects for which credit is granted toward a stand-
ard college degree pursued in residence on a standard quarter-
or semester-hour basis, 
the number of credit hours (semester or quarter nours) represented 
by such unit courses or subjects shall, during the semester, quarter, 
or other applicable portion of the academic year when pursued, be 
converted to equivalent clock hours, determined as prescribed in 
paragraph (2) of this subsection. Such equivalent clock hours then 
shall be combined with actual weekly clock hours of training con-
currently pursued, if any, to determine the total clock hours of 
enrollment. 
"(2) For the purpose of determining the clock-hour equivalency 
described in paragraph (1) of this subsection, the total number of 
credit hours being pursued will be multiplied by the factor resulting 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2087 
from dividing the number of clock hours which constitute full time 
under clause (1) or (2) of subsection (a) of this section, as appropriate, 
by the number of semester hours (or the equivalent thereof) which, 
under clause (4) of such subsection, constitutes a full-time institu-
tional undergraduate course at such institution.". 
SEC. 4
1
8
. DEPARTMENT OF VETERANS AFFAIRS 
APPROVAL OF CERTAIN 
COURSES. 
Section 1789(bX6XB) is amended by inserting "and members of the 
Selected Reserve of the Ready Reserve eligible for educational 
assistance under chapter 106 of title 10;" after "dependents". 
SEC. 419. EFFECTIVE DATE OF ADJUSTMENTS OF EDUCATIONAL BENE-
FITS. 
y 
Section 3013 is amended— 
(1) by striking out "Effective" and inserting in lieu thereof 
"(a) Except as provided in subsection (b) of this section, effec-
tive"; and 
(2) by adding at the end the following new subsection: 
"(b) The effective date of an adjustment of benefits under any 
chapter referred to in subsection (a) of this section, if made on the 
basis of a certification made by the veteran or person and accepted 
by the Secretary under section 1780(g) of this title, shall be the date 
of the change,". 
SEC. 420. DETERMINATION OF DELIMITING PERIOD. 
(a) MINIMUM REQUIREMENT FOR ACTIVE DUTY SERVICE.—(1) Sec-
tion 1431 is amended— 
(A) by adding at the end the following new subsection: 
"(g) For purposes of subsection (a) of this section, an individual's 
last discharge or release from active duty shall not include any 
discharge or release from a period of active duty of less than 90 days 
of continuous service unless the individual involved is discharged or 
released for a service-connected disability, for a medical condition 
which preexisted such service and which the Secretary determines 
is not service connected, for hardship, or as a result of a reduction in 
force as described in section 1411(aXlXAXiiXni) of this title."; and 
(B) in subsection (a), by inserting ", and subject to subsection 
(g)," before "of this section," in the material preceding clause 
(1). 
(2) Section 1632(a) is amended— 
(A) by adding at the end the following new paragraph: 
"(4) For purposes of paragraph (1) of this subsection, a veteran's 
last discharge or release from active duty shall not include any 
discharge or release from a period of active duty of less than 90 days 
of continuous service unless the individual involved is discharged or 
released for a service-connected disability, for a medical condition 
which preexisted such service and which the Secretary determines 
is not service connected, for hardship, or as a result of a reduction in 
force as described in section 1411(aXlXAXiiXIII) of this title."; and 
(B) in paragraph (1), by inserting ", and subject to paragraph 
(4)," before "of this subsection,". 
(3) Section 1662(a) is amended— 
(A) by adding at the end the following new paragraph: 
"(4) For purposes of paragraph (1) of this subsection, a veteran's 
last discharge or release from active duty shall not include any 
discharge or release from a period of active duty of less than 90 days 
, 
103 STAT. 2088 
PUBLIC LAW 101-237—DEC. 18, 1989 
of continuous service unless the individual involved is discharged or 
released for a service-connected disability, for a medical condition 
which preexisted such service and which the Secretary determines 
is not service connected, for hardship, or as a result of a reduction in 
force as described in section 1411(aXlXAXiiXin) of this title."; and 
(B) in paragraph (1), by striking out "No" and inserting in lieu 
thereof "Subject to paragraph (4) of this subsection, no". 
(b) SPECIAL RULE.—Section 1431(e) is amended— 
(1) by striking out "(e) In" and inserting in lieu thereof "(eXD 
Except as provided in paragraph (2) of this subsection, in"; and 
(2) by adding at the end the following: 
"(2) In the case of an individual to which paragraph (1) of this 
subsection is applicable and who is described in section 1652(aXlXB) 
of this title, the 10-year period prescribed in subsection (a) of this 
section shall not be reduced by any period in 1977 before the 
individual began serving on active duty.". 
38 u s e 241 note. 
SEC. 42L INFORMATION TO ASSIST VETERANS RECEIVING EDUCATION 
BENEFITS. 
(a) IN GENERAL.—For the purpose of assisting individuals receiv-
ing education benefits from the Department of Veterans Affairs, the 
Secretary of Veterans Affairs shall prepare, and update periodically, 
a document containing a detailed description of the benefits, limita-
tions, procedures, requirements, and other important aspects of the 
education programs administered by the Department. 
(b) DISTRIBUTION.—The Secretary shall, beginning in fiscal year 
1990 but not before July 1, 1990, distribute copies of such docu-
ment— 
(1) to each individual applving for benefits under an education 
program administered by the Department of Veterans Affairs 
and to each such individual at least annually in the years 
thereafter in which the individual receives such benefits; 
(2) to education and training institution officials on at least an 
annual basis; and 
(3) upon request, to other individuals significantly affected by 
education programs administered by the Secretary, including 
military education personnel. 
(c) FUNDING.—The Secretary shall use funds appropriated to the 
readjustment benefits account of the Department to carry out this 
section. 
, 
SEC. 422. EDUCATIONAL ASSISTANCE FOR FLIGHT TRAINING. 
(a) THE MONTGOMERY G I BILL ACTIVE DUTY PROGRAM.—(1) Section 
1434 is amended by inserting after subsection (c), as added by section 
423(aX6XB), the following new subsection: 
"(dXl) The Secretary may approve the pursuit of flight training 
(in addition to a course of flight training that may be approved 
under section 1673(b) of this title) by an individual entitled to basic 
educational assistance under this chapter if— 
"(A) such training is generally accepted as necessary for the 
attainment of a recognized vocational objective in the field of 
aviation; 
"(B) the individual possesses a valid private pilot's license and 
meets the medical requirements necessary for a commercial 
pilot's license; and 
"(C) the flight school courses meet Federal Aviation Adminis-
tration standards for such courses and are approved by the 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2089 
Federal Aviation Administration and the State approving 
agency. 
"(2) This subsection shall not apply to a course of flight training 
that commences on or after October 1,1994.". 
(2) Section 1432 is amended by inserting at the end the following 
new subsection: 
"(f)(1) Notwithstanding subsection (a) of this section, each individ-
ual who is pursuing a program of education consisting exclusively of 
flight training approved as meeting the requirements of section 
1434(d) of this title shall be paid an educational assistance allowance 
under this chapter in the amount equal to 60 percent of the estab-
lished charges for tuition and fees (other than tuition and fees 
charged for or attributable to solo flying hours) which similarly 
circumstanced nonveterans enrolled in the same flight course are 
required to pay, 
"(2) No educational assistance allowance may be paid under this 
chapter to an individual for any month during which such individ-
ual is pursuing a program of education consisting exclusively of 
flight training until the Secretary has received from that individual 
and the institution providing such training a certification of the 
flight training received by the individual during that month and the 
tuition and other fees charged for that training. 
"(3) The number of months of entitlement charged in the case of 
any individual for a program of education described in paragraph (1) 
of this subsection shall be equal to the number (including any 
fraction) determined by dividing the total amount of educational 
assistance paid such individual for such program by the monthly 
rate of educational assistance which, except for paragraph (1) of this 
subsection, such individual would otherwise be paid under subsec-
tion (a)(1), (b)(1), or (c) of section 1415 of this title, as the case may 
be.". 
(b) THE MONTGOMERY G I BILL SELECTED RESERVE PROGRAM.—(1) 
Section 2136 of title 10, United States Code, is amended by adding 
the following new subsection: 
"(cXD The Secretary of Veterans Affairs may approve the pursuit 
of flight training (in addition to a course of flight training that may 
be approved under section 1673(b) of title 38) by an individual 
entitled to educational assistance under this chapter if— 
"(A) such training is generally accepted as necessary for the 
attainment of a recognized vocational objective in the field of 
aviation; 
"(B) the individual possesses a valid private pilot's license and 
meets the medical requirements necessary for a commercial 
pilot's license; and 
"(C) the flight school courses meet Federal Aviation Adminis-
tration standards for such courses and are approved by the 
Federal Aviation Administration and the State approving 
agency. 
"(2) This subsection shall not apply to a course of flight training 
that commences on or after October 1,1994.". 
(2) Section 2131 of such title is amended— 
(A) in subsection (b), by striking out "(f)" and inserting in lieu 
thereof "(g)"; and 
(B) by adding at the end the following new subsection: 
"(gXD Each individual who is pursuing a program of education 
consisting exclusively of flight training approved as meeting the 
requirements of section 2136(c) of this title shall be paid an edu-
103 STAT. 2090 
PUBLIC LAW 101-237—DEC. 18, 1989 
cational assistance allowance under this chapter in the amount 
equal to 60 percent of the established charges for tuition and fees 
(other than tuition and fees charged for or attributable to solo flying 
hours) which similarly circumstanced nonveterans enrolled in the 
same flight course are required to pay, 
"(2) No educational assistance allowance may be paid under this 
chapter to an individual for any month during which such individ-
ual is pursuing a program of education consisting exclusively of 
^ 
flight 
training until the Secretary has received from that individual 
and the institution providing such training a certification of the 
flight training received by the individual during that month and the 
tuition and other fees charged for that training. 
"(3) The period of entitlement of an individual pursuing a pro-
gram of education described in paragraph (1) shall be charged with 
one month for each $140 which is paid to that individual as an 
educational sissistance allowance for such program.". 
38 use 1434 
(c) EVALUATION OF PROVIDING ASSISTANCE FOR FUGHT TRAINING.— 
^°^- 
(IXA) The Secretary of Veterans Affairs shall conduct an evaluation 
of paying educational assistance for flight training under chapter 30 
of title 38, United States Code, and chapter 106 of title 10, United 
States Code. 
(B) The evaluation required by subparagraph (A) shall be designed 
to determine the effectiveness of the provision of educational assist-
ance referred to in such subparagraph in preparing the recipients of 
such assistance for recognized vocational objectives in the field of 
aviation. 
Reports. 
(2) Not later than January 31, 1994, the Secretary shall submit to 
~ 
the Committees on Veterans' Affairs of the Senate and the House of 
Representatives a report on the evaluation required by paragraph 
(1). Such report shall include— 
(A) information, separately as to payments made under chap-
ter 30 of title 38, United States Code, and payments made under 
chapter 106 of title 10, United States Code, regarding— 
(i) the number of recipients paid educational assistance 
allowances for flight training; 
(ii) the amount of such assistance; 
(iii) the amount paid by the recipients for such training; 
fs, 
(iv) the vocational objectives of the recipients; and 
t. 
(v) the extent to which the training (I) assists the recipi-
ents in achieving employment in the field of aviation, or (II) 
was used only or primarily for recreational or avocational 
purposes; and 
(B) any recommendations for legislation that the Secretary 
considers appropriate to include in the report. 
10 use 2131 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
note. 
take effect on September 30, 1990. 
SEC. 423. TECHNICAL AND CLERICAL AMENDMENTS. 
^ 
^ 
(a) IN GENERAL.—Title 38 is amended as follows: 
(IXA) Section 1412(aXl) is amended— 
(i) in clause (AXii), by striking out "and after completion" 
and inserting in lieu thereof "and beginning within one 
year after completion"; and 
(ii) in clause (BXii), by striking out "and after completion" 
and inserting in lieu thereof "and beginning within one 
year after completion". 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2091 
(B) Section 1412(bX2) is amended by striking out "Continuity 
of service" and all that follows through "such clauses" and 
inserting in lieu thereof "After an individual begins service in 
the Selected Reserve within one year after completion of the 
service described in clause (AXi) or (BXi) of subsection (aXD of 
t 
this section, the continuity of service of such individual as a 
member of the Selected Reserve". 
(2) Section 1413 is amended— 
(A) in subsections (aX2) and (b), by striking out "subsec-
tion (c)" and inserting in lieu thereof "subsection (d)"; 
(B) in subsection (aX2), by striking out "1411(aXlXBXiiXI)" 
I 
the second place it occurs and inserting in lieu thereof 
"UlKaXlXAXiiXD"; and 
(C) in subsection (c)— 
, 
(i) by striking out "paragraph (2)" in paragraph (1) 
and inserting in lieu thereof "paragraphs (2) and (3)"; 
and 
(ii) by adding at the end of such subsection the 
following: 
"(3) Subject to section 1795 of this title and subsection (d) of this 
section, an individual described in clause (B) or (CXii) of section 
1418(bX3) of this title (other than an individual described in para-
graph (2) of this subsection) is entitled to the number of months of 
educational assistance under this chapter that is equal to the 
number of months the individual has served on continuous active 
duty after June 30,1985.". 
(3) Section 1417(aXlXAXii) is amended by striking out "but 
/ 
for" and all that follows through "of this title" and inserting in 
lieu thereof "but for clause (IXAXi) or clause (2XA) of section 
1411(a) or clause (IXAXi) or (ii) or clause (2) of section 1412(a) of 
this title". 
(4) Section 1431(f) is amended by striking out ", under this 
section," in paragraphs (1) and (2) and inserting in lieu thereof 
", under section 1413,". 
(5XA) Section 1434(aX3) is amended by striking out "employ- 
_ 
ment)" and inserting in lieu thereof "employment during and 
since the period of such veteran's active military service)". 
(B) Section 1641(aX2) is amended by striking out "employ-
ment)" and inserting in lieu thereof "employment during and 
since the period of such veteran's active military service)". 
(6) Section 1434 is amended— 
(A) in subsection (aXD, by inserting "1780(f)," after 
"1780(c),"; and 
(B) by inserting after subsection (b), as redesignated by 
section 415(bX3), the following new subsection: 
"(c) Payment of educational assistance allowance in the case of an 
eligible individual pursuing a program of education under this 
chapter on less than a half-time basis shall be made in a lump-sum 
amount for the entire quarter, semester, or term not later than the 
last day of the month immediately following the month in which 
certification is received from the educational institution that such 
individual has enrolled in and is pursuing a program at such 
institution. Such lump-sum payment shall be computed at the rate 
determined under section 1432(b) of this title.". 
(7) Section 1633 is amended by adding at the end the following 
new subsection: 
,. 
103 STAT. 2092 
PUBLIC LAW 101-237—DEC, 18, 1989 
"(d) For any month in which an individual fails to complete 120 
hours of training, the entitlement otherwise chargeable under 
subsection (c) of this section shall be reduced in the same proportion 
as the monthly benefit payment payable is reduced under subsection 
0>) of this section.". 
(8XA) Section 1781(b) is amended by adding at the end the 
following: 
"(5) The Omnibus Diplomatic Security and Antiterrorism Act 
of 1986 (Public Law 99-399).". 
(B) Section 1795(a) is amended by adding at the end the 
following: 
"(8) The Omnibus Diplomatic Security and Antiterrorism Act 
of 1986 (Public Law 99-399).". 
(9) Section 1790 is amended— 
(A) in subsection (aX2) by striking out "and prepayment"; 
(B) in subsection a)X3XA) by inserting "30," before "32"; 
and 
(C) in subsection (bX3XB)— 
(i) by striking out "(BXi)" and inserting in lieu 
thereof "(B)"; and 
* 
(ii) by redesignating subclauses (I), (II), and (III) as 
clauses (i), (ii), and (iii), respectively, 
(b) TECHNICAL AMENDMENTS TO CHAPTERS 30, 31, 32, 34, 35, 36, AND 
41 CONCERNING THE NEW DEPARTMENT OF VETERANS AFFAIRS.—Title 
38 is amended as follows: 
(1) Chapters 30, 31, 32, 34, 35, and 36 are amended— 
(A) by striking out "Administrator" each place it appears 
(other than in section 1652(b)) and inserting in lieu thereof 
"Secretary"; and 
(B) by striking out "Veterans' Administration" each place 
it appears and inserting in lieu thereof "Department of 
(2) 
Sections 
1723(e), 
1743(a), 
1779(b), 
1780(dX3), 
1790(bX3XBXiXIII), 1794, 1796(c), and 1799(d) are amended by 
I 
striking out "Administrator's" and inserting in lieu thereof 
"Secretary's". 
(3) Section 1402(5) is amended to read as follows: 
"(5) The term 'Secretary of Defense' means the Secretary of 
Defense, except that it means the Secretary of Transportation with 
respect to the Coast Guard when it is not operating as a service in 
the Navy.". 
(4) The following sections, as in effect on the day before the 
date of the enactment of this Act, are amended by inserting "of 
Defense" after "Secretary": 
(A) Sections 1418(aX3), 1621(c), 1621(e), 1622(a), 1622(d), 
1623(b), 1631(aX2XC), and 1642. 
(B) Sections 1421(a), 1421(b), and 1622(e), the second place 
"Secretary" appears. 
(C) Section 14220t)), the third place "Secretary" appears. 
(D) Sections 1436(b), 1622(c), and 1643, each place "Sec-
retary" appears. 
(5) Section 1415(c), as in effect on the day before the date of 
the enactment of this Act, is amended— 
(A) by striking out "prescribed by the Secretary," and 
'
» 
inserting in lieu thereof "prescribed by the Secretary of 
Defense,"; and 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2093 
c
, 
(B) by inserting "of Defense" after "Secretary" the last 
place it appears. 
(6) Section 1621(bXl), as in effect on the day before the date of 
the enactment of this Act, is amended by striking out "(herein-
after" and all that follows through "Secretary')". 
(7) Section 1623(d), as in effect on the day before the date of 
the enactment of this Act, is amended— 
(A) by inserting "of Defense" after "Secretary" the first 
place it occurs; and 
(B) by striking out "the Secretary" the second place it 
appears and inserting in lieu thereof "such Secretary". 
(8) Chapter 41 is amended— 
(A) by striking out "Administrator" each place it appears 
(other than in paragraphs (1) and (2) of section 2002A(e) and 
in section 2010(bXlXG)) and inserting in lieu thereof "Sec-
retary of Veterans Affairs"; and 
(B) by striking out "Veterans' Administration" each place 
it appears and inserting in lieu thereof "Department of 
Veterans Affairs". 
TITLE V—MEMORIAL AFFAIRS 
. 
SEC. 
5
0
1
. 
REIMBURSEMENT FOR COST 
OF CEMETERY HEADSTONE OR 
MARKER. 
Subsection (d) of section 906 is amended— 
(1) by striking out "actual costs incurred by or on behalf of 
such person in acquiring" in the first sentence and inserting in 
lieu thereof "cost of acquiring"; 
(2) by inserting after the first sentence the following: "The 
cost referred to in the preceding sentence is the cost actually 
incurred by or on behalf of such person or the cost prepaid by 
the deceased individual, as the case may be."; and 
(3) by striking out "the preceding sentence" and inserting in 
lieu thereof "this subsection". 
SEC. 502. BURIAL OF CREMATED REMAINS IN ARLINGTON NATIONAL 
CEMETERY. 
(a) IN GENERAL.—Chapter 24 is amended by adding at the end the 
following new section: 
"§1010. Burial of cremated remains in Arlington National 
Cemetery 
"(a) The Secretary of the Army shall designate an area of appro-
priate size within Arlington National Cemetery for the unmarked 
interment, in accordance with such regulations as the Secretary 
may prescribe, of the ashes of persons eligible for interment in 
Arlington National Cemetery whose remains were cremated. Such 
area shall be an area not suitable for the burial of casketed remains. 
"(b) The Secretary of the military departments shall make avail-
able appropriate forms on which those members of the Armed 
Forces who so desire may indicate their desire to be buried within 
the area to be designated under subsection (a).". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end the following new 
item: 
^ 
"1010. Burial of cremated remains in Arlington National Cemetery.". 
103 STAT. 2094 
PUBLIC LAW 101-237—DEC. 18, 1989 
SEC. 503. MEMBERSHIP 
ON AMERICAN 
BATTLE 
MONUMENTS COM-
MISSION. 
The first section of the Act entitled "An Act for the creation of the 
American Battle Monuments Commission to erect suitable memori-
als commemorating the services of the American soldier in Europe, 
and for other purposes" (36 U.S.C. 121), approved March 4, 1923, is 
amended by striking out "commissioned officers" in the third sen-
tence and inserting in lieu thereof "members". 
SEC. 504. GRAVE LINERS. 
(a) IN GENERAL.—Subsection (eXD of section 906 is amended by 
striking out the first sentence and inserting in lieu thereof the 
following: "The Secretary of Veterans Affairs shall provide a grave 
liner for each new grave in an open cemetery within the National 
Cemetery System in which remains are interred in a casket.". 
38 use 906 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to interments that occur after January 1,1990. 
SEC. 505. OPERATION OF CERTAIN CEMETERY. 
Michigan. 
The Secretary of Veterans Affairs shall enter into a contract with 
Contracts. 
^j^e State of Michigan, or the appropriate State agency thereof, 
under which the Secretary shall, beginning not later than July 1, 
1990, operate and maintain the cemetery located in Mackinac Island 
State Park, Michigan, in accordance with standards applicable to 
cemeteries in the National Cemetery System. 
TITLE VI—MISCELLANEOUS 
SEC. 60L EXPANSION OF MULTIYEAR PROCUREMENT AUTHORITY TO IN-
CLUDE NON-MEDICAL ITEMS. 
(a) EXPANSION OF AUTHORITY.—Section 114 is amended— 
(1) in subsection (a), by striking out "for use in Veterans' 
Administration health-care facilities"; 
(2) in subsection 03X2)(A), by striking "health-care"; and 
(3) in subsection (e)— 
(A) by striking out paragraph (2); and 
(B) by redesignating paragraphs (3) and (4) as paragraphs 
(2) and (3), respectively. 
(b) CLERICAL AMENDMENTS.—(1) The heading of such section is 
amended to read as follows: 
"§ 114. Multiyear procurement". 
(2) The item relating to such section in the table of sections at the 
beginning of chapter 1 is amended to read as follows: 
"114. Multiyear procurement.". 
SEC. 602. COURT OF VETERANS APPEALS. 
(a) JUDICIAL PERSONNEL FINANCIAL DISCLOSURE REQUIREMENTS.— 
(1) Section 308 of the Ethics in Government Act of 1978 (28 U.S.C. 
App. 308) is amended— 
(A) in clause (9), by inserting "United States Court of Veter-
ans Appeals;" after "Appeals;"; and 
(B) in clause (10)— 
(i) by striking out "or" the first place it appears; and 
(ii) by inserting a comma and "or of the United States 
Court of Veterans Appeals" after "Appeals". 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2095 
(2) Not later than 30 days after the date of the enactment of this 
Act, each person who, on that date, is a judge of the United States 
Court of Veterans Appeals or a judicial employee of such court and 
each person who, before that date, has been nominated by the 
President to be a judge on such court shall file a report containing 
the information described in section 302(b) of the Ethics in Govern-
ment Act of 1978 (28 U.S.C. App. 302(b)). Subsections (e), (f), and (g) 
of section 302 of such Act shall apply to the requirement in the 
preceding sentence. 
Ot)) AUTHORITY TO ADMINISTER OATHS.—Section 4054 is amended by 
adding at the end the following new subsection: 
"(d) Judges of the Court shall have the authority to administer 
oaths.". 
(c) AUTHORITY TO COMPEL ACTIONS UNREASONABLY DELAYED.— 
Section 4061(aX2) is amended by inserting "or unreasonably de-
layed" after "withheld". 
Reports. 
28 u s e app. 302 
note. 
SEC. 
6
0
3
. 
COLLOCATION 
AND 
LEASE 
PURCHASE. 
IS 
(a) REGIONAL OFFICES AND MEDICAL CENTERS.—Section 230 
amended by adding at the end the following new subsection: 
"(cXD To provide for a more economical, efficient, and effective 
operation of such regional offices, the Secretary shall provide for the 
collocation of at least three regional offices with medical centers of 
the Department— 
"(A) on real property under the jurisdiction of the Depart-
ment of Veterans Affairs at such medical centers; or 
"(B) on real property that is adjacent to such a medical center 
and is under the jurisdiction of the Department as a result of 
being conveyed to the United States for the purpose of such 
collocation. 
"(2XA) In carrying out this subsection and notwithstanding any 
other provision of law, the Secretary may lease, with or without 
compensation and for a period of not to exceed 35 years, to another 
party at not more than seven locations any of the real property 
described in paragraph (IXA) or (B) of this subsection. 
"(B) Such real property shall be used as the site of a facility— 
"(i) constructed and owned by the lessee of such real property; 
and 
"(ii) leased under paragraph (3XA) of this subsection to the 
Department for such use and such other activities as the Sec-
retary determines are appropriate. 
"(3XA) The Secretary may enter into a lease for the use of any 
facility described in paragraph (2XB) of this subsection for not more 
than 35 years under such terms and conditions as may be in the best 
interests of the Department. 
"(B) Each agreement to lease a facility under subparagraph (A) of 
this paragraph shall include a provision that— 
"(i) the obligation of the United States to make payments 
under the agreement is subject to the availability of appropria-
tions for that purpose; and 
"(ii) the ownership of such facility shall vest in the United 
States at the end of such lease. 
"(4XA) The Secretary may sublease any space in such a facility to 
another party at a rate not less than— 
"(i) the rental rate paid by the Secretary for such space under 
paragraph (3) of this subsection; plus 
Real property. 
103 STAT. 2096 
PUBLIC LAW 101-237—DEC. 18, 1989 
"(ii) the amount the Secretary pays for the costs of admin-
istering such facility (including operation, maintenance, utility, 
and rehabilitation costs) which are attributable to such space. 
"(B) In any such sublease, the Secretary shall include such terms 
relating to default and nonperformance as the Secretary considers 
appropriate to protect the interests of the United States. 
(5) The Secretary shall use the receipts of any pa3mient for the 
lease of real property under paragraph (2) for the pa3anent of the 
lease of a facility under paragraph (3). 
"(6XA) Subject to subparagraph (CXi) of this paragraph, the Sec-
retary shall, within 120 days of the date of the enactment of this 
subsection, issue an invitation for offers with respect to three col-
locations to be carried out under this subsection. Such invitation 
shall include, with respect to each such collocation, at least— 
"(i) identification of the site to be developed; 
"(ii) minimum office space requirements for regional office 
activities; 
"(iii) design criteria of the facility to be constructed; 
"(iv) a plan for meeting the security and parking needs for the 
facility and its occupants and visitors; 
"(v) a statement of current and projected rents and other costs 
for regional office activities; 
"(vi) the estimated cost of construction of the facility con-
cerned, the estimated annual cost of leasing space for regional 
office activities in the facility, and the estimated total annual 
cost of leasing all space in such facility; 
"(vii) a plan for securing appropriate licenses, easements, and 
rights-of-way; and 
"(viii) a list of terms and conditions the Secretary has ap-
proved for inclusion in the lease agreement for the facility 
concerned. 
"(B) Subject to subparagraph (CXii) of this paragraph, the Sec-
retary shall— 
"(i) within one year after the date on which the invitation is 
issued under subparagraph (A) of this paragraph, enter into an 
agreement to carry out one collocation under this subsection; 
and 
"(ii) within 180 days after entering into the agreement re-
ferred to in clause (i) of this subparagraph, enter into agree-
ments to carry out two additional collocations, 
unless the Secretary determines that it is not economically feasible 
for the Department of Veterans Affairs to undertake them, taking 
into consideration all of the tangible and intangible benefits associ-
ated with such collocations. 
"(C) The Secretary shall— 
-
"(i) at least 10 days before the issuance or other publication of 
the invitation referred to in subparagraph (A) of this paragraph, 
transmit a copy of such invitation to the Committees on Veter-
ans' Affairs of the Senate and House of Representatives; and 
"(ii) at least 30 days before entering into an agreement under 
subparagraph (B) of this paragraph, transmit a copy to the 
Committees on Veterans' Affairs of the Senate and House of 
Representatives of the proposals selected by the Secretary from 
those received in response to the invitation issued under 
subparagraph (A) of this paragraph. 
"(7) Tne authority to enter into an agreement under this subsec-
tion shall expire on October 1,1992.". 
PUBLIC LAW 101-237—DEC. 18, 1989 
103 STAT. 2097 
(b) LEASE-PURCHASE OF CERTAIN MEDICAL CENTERS.—Section 5003 
is amended by adding at the end the following new subsection: 
"(dXD The Secretary may provide for the acquisition of not more 
than three facilities for the provision of outpatient services or 
nursing home care through lease-purchase arrangements on real 
property under the jurisdiction of the Department of Veterans 
Affairs. 
"(2XA) In carrying out this subsection and notwithstanding any 
other provision of law, the Secretary may lease, with or without 
compensation and for a period of not to exceed 35 years, to another 
party any of the real property described in paragraph (1) of this 
subsection. 
"(B) Such real property shall be used as the site of a facility 
referred to in paragraph (1) of this subsection— 
"(i) constructed and owned by the lessee of such real property; 
and 
"(ii) leased under paragraph (3XA) of this subsection to the 
Department for such use and for such other activities as the 
Secretary determines are appropriate. 
"(3XA) The Secretary may enter into a lease for the use of any 
facility described in paragraph (2XB) of this subsection for not more 
than 35 years under such terms and conditions as may be in the best 
interests of the Department. 
"(B) Each agreement to lease a facility under subparagraph (A) of 
, 
this paragraph shall include a provision that— 
"(i) the obligation of the United States to make payments 
under the agreement is subject to the availability of appropria-
tions for that purpose; and 
"(ii) the ownership of such facility shall vest in the United 
States at the end of such lease. 
"(4XA) The Secretary may sublease any space in such a facility to 
another party at a rate not less than— 
"(i) the rental rate paid by the Secretary for such space under 
paragraph (3) of this subsection; plus 
"(ii) the amount the Secretary pays for the costs of admin-
istering such facility (including operation, maintenance, utility, 
and rehabilitation costs) which are attributable to such space. 
"(B) In any such sublease, the Secretary shall include such terms 
relating to default and nonperformance as the Secretary considers 
appropriate to protect the interests of the United States. 
"(5) The Secretary shall use the receipts of any payment for the 
lease of real property under paragraph (2) for the payment of the 
lease of a facility under paragraph (3). 
"(6) The authority to enter into an agreement under this sub-
section— 
"(A) shall not take effect until the Secretary has entered into 
agreements under section 230(c) of this title to carry out at least 
three collocations; and 
"(B) shall expire on October 1,1993.". 
SEC. 604. RATIFICATION. 
38 USC 620B 
Any actions of the Secretary of Veterans Affairs in carrying out 
the provisions of section 620B of title 38, United States Code, section 
103 STAT. 2098 
PUBLIC LAW 101-237—DEC. 18, 1989 
115 of the Veterans Benefits and Services Act of 1988, section 618 of 
the Treasury, Postal Service and General Government Appropria-
tions Act, 1989, or section 1829 of such title, by contract or other-
wise, during the period beginning on December 1, 1989, and ending 
on the date of the enactment of this Act are hereby ratified. 
Approved December 18, 1989. 
LEGISLATIVE HISTORY—H.R. 901 (S. 13): 
HOUSE REPORTS: No. 101-107 (Comm. on Veterans' Affairs). 
SENATE REPORTS: No. 101-126 accompanying S. 13 (Comm. on Veterans' Affairs). 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
June 27, considered and passed House. 
Oct. 3, considered and passed Senate, amended. 
Nov. 20, House concurred in Senate amendments with amendments. Senate 
concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 25 (1989): 
Dec. 18, Presidential statement.