A bill to amend title 38, United States Code, to establish certain procedures for the adjudication of claims for benefits under laws administered by the Veterans' Administration; to apply the provisions of section 553 of title 5, United States Code, to rule-making procedures of the Veterans' Administration; to provide for judicial review of certain final decisions of the Board of veterans' Appeals; to provide for the payment of reasonable fees to attorneys for rendering legal representation to individuals claiming benefits under laws administered by the Veterans' Administration, and for other purposes.
PL 100-687 (S.11), enacted 11/18/1988

PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4105 
Public Law 100-687 
100th Congress 
An Act 
To amend title 38, United States Code, to establish certain procedures for the 
adjudication of claims for benefits under laws administered by the Veterans' 
Administration; to apply the provisions of section 553 of title 5, United States Code, 
to rulemaking procedures of the Veterans' Administration; to establish a Court of 
Veterans' Appeals and to provide for judicial review of certain final decisions of the 
^r 
i o i QOQ 
Board of Veterans' Appeals; to provide for the payment of reasonable fees to 
-^—p 
attorneys for rendering legal representation to individuals claiming benefits under 
to. 11] 
laws administered by the Veterans' Administration; to increase the rates of 
compensation payable to veterans with service-connected disabilities; and to make 
various improvements in veterans' health, rehabilitation, and memorial affairs 
programs; and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. 
DIVISION A—VETERANS' JUDICIAL REVIEW 
Veterans' 
Judicial Review 
SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
^^• 
CODE. 
(a) SHORT TITLE.—This division may be cited as the "Veterans' 38 USC101 note. 
Judicial Review Act". 
(b) 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. 
TITLE I—ADJUDICATIVE AND RULEMAK-
ING AUTHORITY OF THE VETERANS' 
ADMINISTRATION 
SEC. 101. DECISIONS BY ADMINISTRATOR. 
(a) MATTERS TO BE DECIDED BY ADMINISTRATOR.—Subsection (a) of 
section 211 is amended to read as follows: 
"(a)(1) The Administrator shall decide all questions of law and fact 
necessary to a decision by the Administrator under a law that 
affects the provision of benefits by the Administrator to veterans or 
the dependents or survivors of veterans. Subject to paragraph (2) of 
this subsection, the decision of the Administrator as to any such 
question shall be final and conclusive and may not be reviewed by 
any other official or by any court, whether by an action in the 
nature of mandamus or otherwise. 
"(2) The second sentence of paragraph (1) of this subsection does 
not apply to— 
"(A) matters subject to section 223 of this title; 
"(B) matters covered by sections 775 and 784 of this title; 
"(C) matters arising under chapter 37 of this title; and 
102 STAT. 4106 
PUBLIC LAW 100-687—NOV. 18, 1988 
"(D) matters covered by chapter 72 of this title.". 
(b) CONFORMING AMENOIAENT.—Section 4004(a) is amended by 
stri^ng out "All questions on claims involving benefits under laws 
administered by the Veterans' Administration and inserting in lieu 
thereof "AU questions in a matter which under section 211(a) of this 
title is subject to decision by the Administrator". 
SEC 102. VETERANS* ADMINISTRATION RULEMAKING. 
(a) APA PROCEDURES.—(1) Chapter 3 is amended by inserting after 
section 222 the following new section: 
"§ 223. Rulemaking: procedures and judicial review 
"(a) In applying section 552(aXl) of title 5 to the Veterans' 
Administration, the Administrator shall ensure that subparagraphs 
(Q, (D), and (E) of that section are complied with, particularly with 
reelect to opinions and interpretations of the General Counsel. 
' (b) The provisions of section 553 of title 5 shall apply, without 
regard to subsection (aX2) of that section, to matters relating to 
loans, grants, or benefits under a law administered by the 
Administrator. 
"(c) An action of the Administrator to which section 552(aXl) or 
553 of title 5 (or both) refers (other than an action relating to the 
adoption or revision of the schedule of ratings for disabilities 
adopted under section 355 of this title) is subject to judicial review. 
Such review shall be in accordance with chapter 7 of title 5 and may 
be sought only in the United States Court of Appeals for the Federal 
Circuit. However, if such review is sought in connection with an 
appeal brought under the provisions of chapter 72 of this title, the 
provisions of that chapter shall apply rather than the provisions of 
chapter 7 of title 5.". 
(2) The table of sections at the b^inning of such chapter is 
amended by inserting after the item relating to section 222 the 
following new item: 
"223. Rulemaking: procedures and judicial review.". 
(b) REPORT ON IMPLEMENTATION.—Not later than May 1,1989, the 
Administrator shall submit to the Committees on Veterans' Affairs 
of the Senate and the House of Representatives a report on the 
implementation of section 223(a) of title 38, United States Code, as 
added by subsection (aXl). Such report shall set forth the actions the 
Administrator is taking to ensure that such section is carried out. 
SEC. 103. VETERANS' ADMINISTRATION ADJUDICATION PROCEDURES. 
(a) IN GENERAL.—(1) C^iapter 51 is amended by adding at the end 
of subchapter I the following new sections: 
"§ 3007. Burden of proof; benefit of the doubt 
"(a) Except when otherwise provided by the Administrator in 
accordance with the provisions of this title, a person who submits a 
claim for benefits under a law administered by the Veterans' 
Administration shall have the burden of submitting evidence suffi-
cient to justify a belief by a fair and impartial individual that the 
claim is weU grounded. The Administrator shall assist such a claim-
ant in developing the facts pertinent to the claim. Such assistance 
shall include requesting information as described in section 3006 of 
this title. 
"(b) When, after consideration of all evidence and material of 
record in a case before the Veterans' Administration with respect to 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4107 
benefits under laws administered by the Veterans' Administration, 
there is an approximate balance of positive and negative evidence 
regarding the merits of an issue material to the determination of the 
matter, the benefit of the doubt in resolving each such issue shall be 
given to the claimant. Nothing in this subsection shall be construed 
as shifting from the claimant to the Administrator the burden 
specified in subsection (a) of this section. 
"§ 3008. Reopening disallowed claims 
"If new and material evidence is presented or secured with re-
spect to a claim which has been disallowed, the Administrator shall 
reopen the claim and review the former disposition of the claim.". 
"§ 3009. Independent medical opinions 
"(a) When, in the judgment of the Administrator, expert medical 
opinion, in addition to that available within the Veterans' Adminis-
tration, is warranted by the medical complexity or controversy 
involved in a case being considered by the Veterans' Administra-
tion, the Administrator may secure an advisory medical opinion 
from one or more independent medical experts who are not employ-
ees of the Veterans' Administration. 
"(b) The Administrator shall make necessary arrangements with 
recognized medical schools, universities, or clinics to furnish such 
advisory medical opinions. Any such arrangement shall provide that 
the actual selection of the expert or experts to give the advisory 
opinion in an individual case shall be made by an appropriate 
official of such institution. 
"(c) The Administrator shall furnish a claimant with notice that 
an advisory medical opinion has been requested under this section 
with respect to the claimant's case and shall furnish the claimant 
with a copy of such opinion when it is received by the Adminis-
trator.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 3006 the 
^ 
following new items: 
"3007. Burden of proof; benefit of the doubt. 
"3008. Reopening disallowed claims. 
"3009. Independent medical opinions.". 
(b) CONFORMING AMENDMENTS.—Section 4009 is amended— 
(1) in subsection (a), by striking out "is authorized to" and 
inserting in lieu thereof' may"; 
(2) in subsection (b)— 
(A) by striking out "Such arrangement will" and insert-
ing in lieu thereof "Any such arrangement shall"; and 
(B) by striking out "any individual case will" and insert-
ing in lieu thereof "an individual case shall"; and 
(3) by adding at the end the following new subsection: 
"(c) The Board shall furnish a claimant with notice that an 
advisory medical opinion has been requested under this section with 
respect to the claimant's case and shall furnish the claimant with a 
copy of such opinion when it is received by the Board.". 
(c) TECHNICAL AMENDMENTS.—(1) The items relating to chapter 51 
in the table of chapters before part I, and in the table of chapters at 
the beginning of part IV, are amended by striking out "Applica-
tions" and inserting in lieu thereof "Claims '. 
(2) The heading of chapter 51 is amended to read as follows: 
102 STAT. 4108 
PUBLIC LAW 100-687—NOV. 18, 1988 
"CHAPTER 51—CLAIMS, EFFECTIVE DATES, AND 
PAYMENTS". 
(3) The item relating to subchapter I in the table of sections at the 
beginning of chapter 51 is amended by striking out "APPUCATIONS" 
and inserting in lieu thereof "CLAIMS". 
(4) The heading of subchapter I of chapter 51 is amended to read 
as follows: 
"SUBCHAPTER I—CLAIMS". 
SEC. 104. ATTORNEYS FEES. 
(a) REVISION OF ATTORNEY FEE LIMITATION.—Section 3404 of title 
38, United States Code, is amended by striking out subsection (c) and 
inserting in lieu thereof the following: 
"(cXD In connection with a proceeding before the Veterans' 
Administration with respect to benefits under laws administered by 
the Veterans' Administration, a fee may not be charged, allowed, or 
paid for services of agents and attorneys with respect to services 
provided before the date on which the Board of Veterans' Appeals 
first makes a final decision in the case. Such a fee may be charged, 
allowed, or paid in the case of services provided after such date only 
if an agent or attorney is retained with respect to such case before 
the end of the one-year period beginning on that date. The limita-
tion in the preceding sentence does not apply to services provided 
with respect to proceedings before a court. 
"(2) A person who, acting as agent or attorney in a case referred to 
in paragraph (1) of this subsection, represents a person before the 
Veterans' Administration or the Board of Veterans' Appeals after 
the Board first makes a final decision in the C£ise shall file a copy of 
any fee agreement between them with the Board at such time as 
may be specified by the Board. The Board, upon its own motion or 
the request of either party, may review such a fee agreement and 
may order a reduction in the fee called for in the agreement if the 
Board finds that the fee is excessive or unreasonable. A finding or 
order of the Board under the preceding sentence may be reviewed by 
the United States Court of Veterans Appeals under section 4063(d) 
of this title. 
"(dXD When a claimant and an attorney have entered into a fee 
agreement described in paragraph (2) of this subsection, the total fee 
payable to the attorney may not exceed 20 percent of the total 
amount of any past-due benefits awarded on the basis of the claim. 
"(2XA) A fee agreement referred to in paragraph (1) of this 
subsection is one under which (i) the amount of the fee payable to 
the attorney is to be paid to the attorney by the Administrator 
directly from any past-due benefits awarded on the basis of the 
claim, and (ii) the amount of the fee is contingent on whether or not 
the matter is resolved in a manner favorable to the claimant. 
"(B) For purposes of subparagraph (A) of this paragraph, a claim 
shall be considered to have been resolved in a manner favorable to 
the claimant if all or any part of the relief sought is granted. 
"(3) To the extent that past-due benefits are awarded in any 
proceeding before the Administrator, the Board of Veterans' Ap-
peals, or the United States Court of Veterans Appeals, the Adminis-
trator may direct that payment of any attorneys' fee under a fee 
arrangement described in paragraph (1) of this subsection be made 
out of such past-due benefits. In no event may the Administrator 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4109 
withhold for the purpose of such payment any portion of benefits 
payable for a period after the date of the final decision of the 
Administrator, the Board of Veterans' Appeals, or Court of Veterans 
Appeals making (or ordering the making of) the award.". 
(b) VIOLATION TO BE A MISDEMEANOR.—Section 3405 of such title is 
amended by striking out "shall be fined not more than $500 or 
imprisoned at hard labor for not more than two years, or both" and 
inserting in lieu thereof "shall be fined as provided in title 18, or 
imprisoned not more than one year, or both". 
TITLE II—BOARD OF VETERANS' 
APPEALS 
SEC. 
2
0
1
. 
APPOINTMENT 
AND 
REMOVAL OF 
THE 
CHAIRMAN AND 
MEM. 
BERS. 
(a) IN GENERAL.—Subsection 0)) of section 4001 is amended to read 
as follows: 
"OaXD The Chairman shall be appointed by the President, by and President of u s 
with the advice and consent of the Senate, for a term of six years. 
The Chairman may be removed by the President for misconduct, 
inefficiency, neglect of duty, or engeiging in the practice of law or for 
physical or mental disability which, in the opinion of the President, 
prevents the proper execution of the Chairman's duties. The Chair-
man may not be removed from office by the President on any other 
grounds. Any such removal may only be made after notice and 
opportunity for hearing. 
(2XA) The other members of the Board (including the Vice 
Chairman) shall be appointed by the Administrator, with the ap-
proval of the President, based upon recommendations of the Chair-
man. Each such member shall be appointed for a term of nine years. 
"(B) A member of the Board (other than the Chairman) may be 
removed by the Administrator upon the recommendation of the 
Chairman. In the case of a removal that would be covered by section 
7521 of title 5 in the case of an administrative law judge, a removal 
of a member of the Board under this paragraph shall be carried out 
subject to the same requirements as apply to removal of an adminis-
trative law judge under that section. Section 554(aX2) of title 5 shall 
not apply to a removal action under this subparagraph. In such a 
removal action, a member shedl have the rights set out in section 
7513(b) of such title. 
"(3) Members (including the Chairman) may be appointed under 
this subsection to more than one term. 
"(4) The Administrator shall designate one member of the Board 
as Vice Chairman. The Vice Chairman shall perform such functions 
as the Chairman may specify. Such member shall serve as Vice 
Chairman at the pleasure of the Administrator.". 
O
b
) SALARY OP CHAIRMAN.—(1) Section 5315 of title 5, United 
States Code, is amended by adding at the end the following: 
"Chairman, Board of Veterans' Appeals.". 
(2) The suiiendment made by paragraph (1) shall take effect when 
the President first appoints an individual as Chairman of the Board 
of Veterans' Appeals under section 4001CbXl) of title 38, United 
States Code (as amended by subsection (a)). 
(c) TRANSITION TO NEW BOARD.—(1) Appointments of members of 
the Board of Veterans' Appeals under subsection (bX2) of section 
Effective date. 
5 u s e 5315 note. 
38 u s e 4001 
note. 
102 STAT. 4110 
PUBLIC LAW 100-687—NOV. 18, 1988 
4001 of title 38, United States Code (as amended by subsection (a)), 
may not be made until a Chairman is appointed under subsection 
(bXD of that section. 
(2) An individual who is serving as a member of the Board on the 
date of the enactment of this Act may continue to serve as a 
member until the earlier of— 
(A) the date on which the individual's successor (as designated 
by the Administrator) is appointed under subsection 0)X2) of 
that section, or 
(B) the end of the 180-day period beginning on the day after 
the date on which the Chairman is appointed under subsection 
(b)(1) of such section. 
38 use 4001 
(d) INITIAL TERMS OF OFFICE.—Notwithstanding the second sen-
note, 
tence of section 4001(bX2) of title 38, United States Code (as amended 
by subsection (a)), specifying the term for which members of the 
Board of Veterans' Appeals shall be appointed, of the members first 
appointed under that section— 
(A) 22 shall be appointed for a term of three years; 
(B) 22 shall be appointed for a term of six years; and 
(C) 22 shall be appointed for a term of nine years, 
as determined by the Administrator at the time of the initial 
appointments. 
SEC. 202. DETERMINATIONS BY THE BOARD. 
(a) MAJORITY VOTE IN SECTIONS.—Section 4003 is amended to read 
as follows: 
"§ 4003. Determinations by the Board 
"(a) Decisions by a section of the Board shall be made by a 
majority of the members of the section. The decision of the section is 
final unless the Chairman orders reconsideration of the case. 
"(b) If the Chairman orders reconsideration in a case, the case 
shall upon reconsideration be heard by an expanded section of the 
Board. When a case is heard by an expanded section of the Board 
after such a motion for reconsideration, the decision of a majority of 
the members of the expanded section shall constitute the final 
decision of the Board. 
"(c) Notwithstanding subsections (a) and (b) of this section, the 
Board on its own motion may correct an obvious error in the 
record.". 
0)) RESOURCES TO DISPOSE OF APPEALS IN A TIMELY MANNER.— 
Section 4001(a) is amended— 
(1) by inserting "and" after "Vice Chairman,"; 
(2) by striking out "necessary, and" and inserting in lieu 
thereof "necessary in order to conduct hearings and dispose of 
appeals properly before thef Board in a timely manner. The 
Board shall have"; and 
(3) by adding at the end the following new sentence: "The 
Board shall have sufficient personnel under the preceding sen-
tence to enable the Board to conduct hearings and consider and 
dispose of appeals properly before the Board in a timely 
manner.". 
SEC. 203. DECISIONS OF THE BOARD. 
(a) DECJSIONS BASED ON THE RECORD.—Section 4004(a) is amended 
by adding at the end the following new sentences: "The Board shall 
decide any such appeal only after affording the claimant an oppor-
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4111 
tunity for a hearing. Decisions of the Board shall be based on the 
entire record in the proceeding and upon consideration of all evi-
dence and material of record and applicable provisions of law and 
r^ulation.". 
(b) CONFORMING AMENDMENT.—Section 4005(dX5) is amended by 
striking out "will base its decision on the entire record and . 
SEC. 204. REOPENING OF DISALLOWED CLAIMS. 
Subsection (b) of section 4004 is amended to read as foUoMrs: 
"(b) Except as provided in section 3008 of this title, when a claim 
is disallowed by the Board, the claim may not thereafter be re-
opened and allowed and a claim based upon the same factual basis 
may not be considered.". 
SEC. 205. NOTICE AND CONTENT OF DECISIONS. 
Section 4004 is amended by striking out subsection (d) and insert-
ing in lieu thereof the following: 
(d) Each decision of the Boaurd shall include— 
"(1) a written statement of the Board's findings and conclu-
sions, and the reasons or bases for those findings and conclu-
sions, on all material issues of fact and law presented on the 
record; and 
"(2) an order granting appropriate relief or denying relief. 
"(e) After reaching a decision in a case, the Board shall promptly 
mail a copy of its written decision to the claimant and the claimant's 
authorized representative (if any) at the last known address of the 
claimant and at the last known address of such representative (if 
any).". 
SEC. 206. STATEMENT OF THE CASE. 
(a) MATTERS TO BE INCLUDED.—Paragraph (1) of section 4005(d) is 
amended in the second sentence by striking out "will prepare" and 
all that folloM^ and inserting in lieu thereof the following: "shall 
prepare a statement of the case. A statement of the case shall 
include the following: 
"(A) A summary of the evidence in the case pertinent to the 
issue or issues with which disagreement has been expressed. 
"(B) A citation to pertinent laws and r^ulations and a dis-
cussion of how such laws and r^ulations affect the agency's 
decision. 
"(C) The decision on each issue and a summary of the reasons 
for such decision.". 
(b) PROHrarnoN AGAINST PRESUMFHON OF AGREEMENT.—Para-
graph (4) of such section is amended to read as follows: 
"(4) The claimant in any case may not be presumed to agree with 
any statement of fact contained in the statement of the case to 
which the claimant does not specifically express agreement.". 
SEC 207. TRAVELING SECTIONS OF THE BOARD. 
(a) IN GENERAL.—Chapter 71 is further amended by adding at the 
end the following new section: 
**§ 4010. Traveling sections 
"A claimant may request a hearing before a traveling section of 
the Board. Any such hearing shall be scheduled for hearing before 
such a section within the area served by a r^onal office of the 
Veterans' Administration in the order in which the requests for 
102 STAT. 4112 
PUBLIC LAW 100-687—NOV. 18, 1988 
hearing are received by the Veterans' Administration with respect 
to hearings in that area.". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end the following new 
item: 
"4010. Traveling sections.". 
SEC. 208. ANNUAL REPORT ON BOARD ACTIVITIES AND RESOURCES. 
Section 4001 is amended by adding at the end the following new 
subsection: 
"(dXD After the end of each fiscal year, the Chairman shall 
prepare a report on the activities of the Board during that fiscal 
year and the projected activities of the Board for the fiscal year 
during which the report is prepared and the next fiscal year. Such 
report shall be included in the documents providing detailed 
information on the budget for the Veterans' Administration that the 
Administrator submits to the Congress in conjunction with the 
President's budget submission for any fiscal year pursuant to section 
1105 of title 31. 
"(2) Each such report shall include, with respect to the preceding 
fiscal year, information specifying— 
"(A) the number of cases appealed to the Board during that 
year; 
"(B) the number of cases pending before the Board at the 
beginning and at the end of that year; 
"(C) the number of such cases which were filed during each of 
the 36 months preceding the current fiscal year; 
"(D) the average length of time a case was before the Board 
between the time of the filing of an appeal and the disposition 
during the preceding fiscal year; and 
"(E) the number of members of the Board at the end of the 
year and the number of professional, administrative, clerical, 
stenographic, and other personnel employed by the Board at the 
end of the preceding fiscal year. 
"(3) The projections in each such report for the current fiscal year 
and for the next fiscal year shall include (for each such year)— 
"(A) an estimate of the number of cases to be appealed to the 
Board; and 
"(B) an evaluation of the ability of the Board Ot>ased on 
existing and projected personnel levels) to ensure timely disposi-
tion of such appeals as required by section 4003(d) of this title.". 
SEC. 209. LIMITATIONS ON AWARDING PERFORMANCE INCENTIVES TO 
BOARD MEMBERS. 
Section 4001 (as amended by section 208) is further amended by 
adding at the end the following new subsection: 
"(e) A performance incentive that is authorized by law for officers 
and employees of the Federal Government may be awarded to a 
member of the Board (including a temporary or acting member) by 
reason of that member's service on the Board only if the Chairman 
of the Board determines that such member should be awarded that 
incentive. A determination by the Chairman for such purpose shall 
be made taking into consideration the quality of performance of the 
Board member.''. 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4113 
TITLE 
III—UNITED 
STATES 
COURT 
OF 
VETERANS 
APPEALS 
SEC. 301. UNITED STATES COURT OF VETERANS APPEALS. 
(a) EsTABUSHMENT OF CouRT.—Part V is amended by inserting 
after chapter 71 the following new chapter: 
"CHAPTER 72—UNITED STATES COURT OF 
VETERANS APPEALS 
"SUBCHAPTER I—ORGANIZATION AND JURISDICTION 
"Sec. 
"4051. Status. 
"4052. Jurisdiction; finality of decisions. 
"4053. Composition. 
"4054. Organization. 
"4055. Offices. 
"4056. Times and places of sessions. 
"SUBCHAPTER II—PROCEDURE 
"4061. Scope of review. 
"4062. Fee for filing appeals. 
"4063. Representation of parties; fee agreements. 
"4064. Rules of practice and procedure. 
"4065. Contempt authority; assistance to the Court. 
"4066. Notice of appeal. 
"4067. Decisions. 
"4068. Availability of proceedings. 
"4069. Publication of decisions. 
"SUBCHAPTER III—MISCELLANEOUS PROVISIONS 
"4081. Employees. 
"4082. Budget and expenditures. 
"4083. Disposition of fees. 
"4084. Fee for transcript of record. 
"4085. Practice fee. 
"SUBCHAPTER IV—DECISIONS AND REVIEW 
"4091. Date when United States Court of Veterans Appeals decision becomes final. 
"4092. Review by United States Court of Appeals for the Federal Circuit. 
"SUBCHAPTER I—ORGANIZATION AND JURISDICTION 
"§ 4051. Status 
"There is hereby established, under Article I of the Constitution of 
the United States, a court of record to be known as the United 
States Court of Veterans Appeals. 
"§ 4052. Jurisdiction; finality of decisions 
"(a) The Court of Veterans Appeals shall have exclusive jurisdic-
tion to review decisions of the Board of Veterans' Appeals. The 
Administrator may not seek review of any such decision. The court 
shall have power to affirm, modify, or reverse a decision of the 
Board or to remand the matter, as appropriate. 
"(b) Review in the Court shall be on the record of proceedings 
before the Administrator and the Board. The extent of the review 
shall be limited to the scope provided in section 4061 of this title. 
The Court may not review the schedule of ratings for disabilities 
adopted under section 355 of this title or any action of the Adminis-
trator in adopting or revising that schedule. 
102 STAT. 4114 
PUBLIC LAW 100-687—NOV. 18, 1988 
"(c) Decisions by the Court are subject to review as provided in 
section 4092 of this title. 
"§ 4053. Composition 
"(a) The Court of Veterans Appeals shall be composed of a chief 
judge and at least two and not more than six associate judges. 
President of U.S. 
"(b) The judges of the Court shall be appointed by the President, 
by and with the advice and consent of the Senate, solely on the 
grounds of fitness to perform the duties of the office. A person may 
not be appointed to the Court who is not a member in good standing 
of the bar of a Federal court or of the highest court of a State. Not 
more than the number equal to the next whole number greater than 
one-half of the number of judges of the Court may be members of the 
same political party. 
"(c) The term of office of the judges of the Court of Veterans 
Appeals shall be 15 years. 
"(d) The chief judge is the head of the Court. 
"(e)(1) The chief judge of the Court shall receive a salary at the 
same rate as is received by judges of the United States Courts of 
Appeals. 
"(2) Each judge of the Court, other than the chief judge, shall 
receive a salary at the same rate as is received by judges of the 
United States district courts. 
"(f)(1) A judge of the Court may be removed from office by the 
President on grounds of misconduct, neglect of duty, engaging in the 
practice of law, or physical or mental disability which, in the 
opinion of the President, prevents the proper execution of the 
judge's duties. A judge of the Court may not be removed from office 
by the President on any other ground. 
"(2) Before a judge may be removed from office under this subsec-
tion, the judge shall be provided with a full specification of the 
reasons for the removal and an opportunity to be heard. 
"§ 4054. Organization 
"(a) The Court of Veterans Appeals shall have a seal which shall 
be judicially noticed. 
"(b) The Court may hear cases by judges sitting alone or in panels, 
as determined pursuant to procedures established by the Court. Any 
such panel shall have not less than three judges. The Court shall 
establish procedures for the assignment of the judges of the Court to 
such panels and for the designation of the chief of each such panel. 
"(c)(1) A majority of the judges of the Court shall constitute a 
quorum for the transaction of the business of the Court. A vacancy 
in the Court shall not impair the powers or affect the duties of the 
Court or of the remaining judges of the Court. 
"(2) A majority of the judges of a panel of the Court shall 
constitute a quorum for the transaction of the business of the panel. 
A vacancy in a panel of the Court shall not impair the powers or 
affect the duties of the panel or of the remaining judges of the panel. 
"§ 4055. Offices 
District of 
"The principal office of the Court of Veterans Appeals shall be in 
Ck)lumbia. 
the District of Columbia, but the Court may sit at any place within 
the United States. 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4115 
**§ 4056. limes and places of sessions 
"The times and places of sessions of the Court of Veterans Ap-
peals shall be prescribed by the chief judge. 
"SUBCHAPTER n—PROCEDURE 
"§ 4061. Scope of review 
"(a) In any action brought under this chapter, the Court of 
Veterans Appeals, to the extent necessary to its decision and when 
presented, shall— 
"(1) decide all relevant questions of law, interpret constitu-
tional, statutory, and r^ulatory provisions, and determine the 
meaning or applicability of the terms of an action of the 
Administrator; 
"(2) compel action of the Administrator unlawfully withheld; 
"(3) hold unlawful and set aside decisions, findings (other 
than those described in clause (4) of this subsection), conclu-
sions, rules, and r^ulations issued or adopted by the Adminis-
trator, the Board of Veterans' Appeals, or the Chairman of the 
Board found to be— 
"(A) arbitrary, capricious, an abuse of discretion, or 
otherwise not in accordance with law; 
"(B) contrary to constitutional right, power, privil^e, or 
immunity 
"(C) in excess of statutory jurisdiction, authority, or 
limitations, or in violation of a statutory right; or 
"(D) without observance of procedure required by law; 
and 
"(4) in the case of a finding of material fact made in reaching 
a decision in a case before the Veterans' Administration with 
respect to benefits under laws administered by the Veterans' 
Administration, hold unlawful and set aside such finding if the 
finding is clearly erroneous. 
"(b) In making the determinations under subsection (a) of this 
section, the Court shall take due account of the rule of prejudicial 
error. 
"(c) In no event shall findings of fact made by the Administrator 
or tiie Board of Veterans' Appeals be subject to trial de novo by the 
court. 
"(d) When a final decision of the Board of Veterans' Appeals is 
adverse to a party and the sole stated basis for such decision is the 
failure of the party to comply with any applicable regulation pre-
scribed by the Administrator, the Court shall review only questions 
raised as to compliance wilii and the validity of the regulation. 
"§ 4062. Fee for filing appeals 
"(a) The Court of Veterans Appeals may impose a fee of not more 
than $50 for the filing of any appeal with the Court. The Ck>urt shall 
establish procedures under wMch such a fee may be waived in the 
case of an appeal filed by or on behalf of a person who demonstrates 
that the requirement that such fee be paid will impose a hardship 
on that person. A decision as to such a waiver is final and may not 
be reviewed in any other court. 
"(b) The Court may from time to time adjust the maximum 
amount permitted for a fee imposed under subsection (a) of this 
102 STAT. 4116 
PUBLIC LAW 100-687—NOV. 18, 1988 
section based upon inflation and similar fees charged by other 
courts established under Article I of the Constitution. 
"§ 4063. Representation of parties; fee agreements 
"(a) The Administrator shall be represented before the Court 
of Veterans Appeals by the General Counsel of the Veterans' 
Administration. 
"(b) Representation of appellants shall be in accordance with the 
rules of practice prescribed by the Court under section 4064 of this 
title. In addition to members of the bar admitted to practice before 
the Court in accordance with such rules of practice, the Court may 
allow other persons to practice before the Court who meet standards 
of proficiency prescribed in such rules of practice. 
"(c) A person who represents an appellant before the Court shall 
file a copy of any fee agreement between the appellant and that 
person with the Court at the time the appeal is filed. The Court, on 
its own motion or the motion of any party, may review such a fee 
agreement. 
"(d) In reviewing a fee agreement under subsection (c) of this 
section or under section 3404(cX2) of this title, the Court may affirm 
the finding or order of the Board and may order a reduction in the 
fee called for in the agreement if it finds that the fee is excessive or 
unreasonable. An order of the Court under this subsection is final 
and may not be reviewed in any other court. 
"§ 4064. Rules of practice and procedure 
"(a) The proceedings of the Court of Veterans Appeals shall be 
conducted in accordance with such rules of practice and procedure 
as the Court prescribes. 
"(b) The mailing of a pleading, decision, order, notice, or process in 
respect of proceedings before the Court shall be held sufficient 
service of such pleading, decision, order, notice, or process if it is 
properly addressed to the address furnished by the appellant on the 
notice of appeal filed under section 4066 of this title. 
"§ 4065. Contempt authority; assistance to the Court 
"(a) The Court shall have power to punish by fine or imprison-
ment such contempt of its authority as— 
"(1) misbehavior of any person in its presence or so near 
thereto as to obstruct the administration of justice; 
"(2) misbehavior of any of its officers in their official trans-
actions; or 
"(3) disobedience or resistance to its lawful writ, process, 
order, rule, decree, or command. 
"(b) The Court shall have such assistance in the carrying out of its 
lawiful writ, process, order, rule, decree, or command as is available 
to a court of the United States. The United States marshal for a 
district in which the CJourt is sitting shall, if requested by the chief 
judge of the Court, attend any session of the Court in that district. 
"§ 4066. Notice of appeal 
"(a) In order to obtain review by the C^urt of Veterans Appeals of 
a final decision of the Board of Veterans' Appeals, a person ad-
versely affected by that action must file a notice of appeal with the 
Court. Any such notice must be filed within 120 days after the date 
on which notice of the decision is mailed pursuant to section 4004(e) 
of this title. 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4117 
"(b) The appellant shall also furnish the Administrator with a 
copy of such notice, but a failure to do so shall not constitute a 
failure of timely compliance with subsection (a) of this section. 
"§ 4067. Decisions 
"(a) A decision upon a proceeding before the Court of Veterans 
Appeals shall be made as quickly as practicable. In a case heard by a 
panel of the Court, the decision shall be made by a majority vote of 
the panel in accordance with the rules of the Court. The decision 
of the judge or panel hearing the csise so made shall be the decision 
of the Court except as provided in subsection (d) of this section, 
"(b) The Court shall include in its decision a statement of its 
conclusions of law and determinations as to factual matters. 
"(c) A judge or panel shall make a determination upon any 
proceeding before the Court, and any motion in connection with 
such a proceeding, that is assigned to the judge or panel. The judge Reports 
or panel shall make a report of any such determination which 
constitutes the judge or panel's final disposition of the proceeding. 
"(d)(1) In the case of a proceeding determined by a single judge of 
the Court, the decision of the judge shall become the decision of the 
Court unless before the end of the 30-day period beginning on the 
date of the decision by the judge the Court, upon the motion of 
either party or on its own initiative, directs that the decision be 
reviewed by a panel of the Court. In such a case, the decision of the 
judge initially deciding the case shall not be a part of the record. 
"(2) In the case of a proceeding determined by a panel of the 
Court, the decision of the panel shall become the decision of the 
Court unless before the end of the 30-day period beginning on the 
date of the decision by the panel the Court, upon the motion of 
either party or on its own initiative, directs that the decision be 
reviewed by an expanded panel of the Court (or the Court en banc). 
In such a case, the decision of the panel initially deciding the case 
shall not be a part of the record. 
"(e) The Court shall designate in its decision in any case those 
specific records of the Government on which it relied (if any) in 
making its decision. The Administrator shall preserve records 
so designated for not less than the period of time designated by 
the 
Administrator 
of 
the 
National 
Archives 
and 
Records 
Administration. 
"§ 4068. Availability of proceedings 
"(a) Except as provided in subsection O
t
>
) of this section, all deci-
sions of the Court of Veterans Appeals and all briefs, motions, 
documents, and exhibits received by the Court (including a tran-
script of the stenographic report of the hearings) shall be public 
records open to the inspection of the public. 
"(b)(1) The Court may make any provision which is necessary to 
prevent the disclosure of confidential information, including a provi-
sion that any such document or information be placed under seal to 
be opened only as directed by the Court. 
"(2) After the decision of the Court in a proceeding becomes final, 
the Court shall permit the withdrawal by the party entitled thereto 
of originals of books, documents, and records, and of models, dia-
grams, and other exhibits, submitted to the Court before the Court 
may, on its own motion, make such other disposition thereof as it 
considers advisable. 
Records. 
Historic 
preservation. 
Records. 
Public 
information. 
Classified 
information. 
102 STAT. 4118 
PUBLIC LAW 100-687—NOV. 18, 1988 
"§ 4069. Publication of decisions 
Public 
"(a) The Court of Veterans Appeals shall provide for the publica-
information. 
tion of dedsions of the Court in such form and manner as may be 
best adapted for public information and use. The Court may make 
such exceptions, or may authorize the chief judge to make such 
exceptions, to the requirement for publication in the preceding 
sentence as may be appropriate. 
"(b) Such authorized publication shall be competent evidence of 
the dedsions of the Court of Veterans Appeals therein contained in 
all courts of the United States and of the several States without any 
further proof or authentication thereof. 
"(c) Such publications shall be subject to sale in the same manner 
and upon the same terms as other public documents. 
"SUBCHAPTER m—MISCELLANEOUS PROVISIONS 
"§ 4081. Employees 
"The Court of Veterans Appeals may appoint such employees as 
may be necessary to execute the functions vested in the 0)urt. Such 
appointments shall be made in accordance with the provisions of 
title 5 governing appointment in the competitive service, except that 
the Court may classify such positions based upon the classiHcation 
of comparable positions in the judicial branch. The basic pay of such 
employees shall be fixed in accordance with subchapter III of chap-
ter 53 of title 5. 
"§ 4082. Budget and expenditures 
"(a) The budget of the Court of Veterans Appeals as submitted by 
the Court for inclusion in the budget of the President for any fiscal 
year shall be included in that budget without review within the 
executive branch. 
"(b) The Court may make such expenditures (including expendi-
tures for personal services and rent at the seat of (xovemment and 
elsewhere, and for law books, books of reference, and periodicals) as 
may be necessary to execute efficiently the functions vested in the 
Court. 
"(c) All expenditures of the Court shall be allowed and paid upon 
presentation of itemized vouchers signed by the certifying officer 
designated by the chief judge. Except as provided in section 4085 of 
this title, all such expenditures shall be paid out of moneys appro-
priated for purposes of the Court. 
"§ 4083. Disposition of fees 
"Except for amounts received pursuant to section 4085 of this 
title, all fees received by the 0)urt of Veterans Appeals shall be 
covered into the Treasury as miscellaneous receipts. 
**§ 4084. Fee for transcript of record 
"The Court of Veterans Appeals may Hx a fee, not in excess of the 
fee authorized by law to be charged and collected therefor by the 
clerks of the district courts, for comparing, or for preparing and 
comparing, a transcript of the record of any proceeding before the 
Court, or for copying any record, entry, or other paper and the 
comparison and certification thereof. 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4119 
"§ 4085. Practice fee 
"(a) The Court of Veterans Appeals may impose a periodic reg-
istration fee on persons admitted to practice before the Court. The 
frequency and amount of such fee shall be determined by the Court, 
except that such amount may not exceed $30 per year. 
"(b) Amounts received by the Court under subsection (a) of this 
section shall be available to the Court for the purposes of (1) 
employing independent counsel to pursue disciplinary matters, and 
(2) defraying administrative costs for the implementation of the 
standards of proficiency prescribed for practice before the Court. 
"SUBCHAPTER IV—DECISIONS AND REVIEW 
"§ 4091. Date when United States Court of Veterans Appeals deci-
sion becomes Hnal 
"(a) A decision of the United States Court of Veterans Appeals 
shall become final upon the expiration of the time allowed for filing, 
under section 4092 of this title, a notice of appeal from such decision, 
if no such notice is duly filed within such time. If such a notice is 
filed within such time, such a decision shall become final— 
"(1) upon the expiration of the time allowed for filing a 
petition for certiorari with the Supreme Court of the United 
States, if the decision of the Court of Veterans Appeals is 
affirmed or the appeal is dismissed by the United States Court 
of Appeals for the Federal Circuit and no petition for certiorari 
is duly filed; 
"(2) upon the denial of a petition for certiorari, if the decision 
of the Court of Veterans Appeals is affirmed or the appeal is 
dismissed by the United States Court of Appeals for the Federal 
Circuit; or 
"(3) upon the expiration of 30 days from the date of issuance 
of the mandate of the Supreme Court, if that Court directs that 
the decision of the Court of Veterans Appeals be affirmed or the 
appeal dismissed. 
"Ot)Xl) If the Supreme Court directs that the decision of the Court 
of Veterans Appeals be modified or reversed, the decision of the 
Court of Veterans Appeals rendered in accordance with the man-
date of the Supreme Court shall become final upon the expiration of 
30 days from the time it was rendered, unless within such 30 days 
either the Administrator or the petitioner has instituted proceed-
ings to have such decision corrected to accord with the mandate, in 
which event the decision of the Court of Veterans Appeals shall 
become final when so corrected. 
"(2) If the decision of the Court of Veterans Appeals is modified or 
reversed by the United States Court of Appeals for the Federal 
Circuit and if— 
"(A) the time allowed for filing a petition for certiorari has 
expired and no such petition has been duly filed, or 
(B) the petition for certiorari has been denied, or 
"(C) the decision of the United States Court of Appeals for the 
Federal Circuit has been affirmed by the Supreme Court, 
then the decision of the Court of Veterans Appeals rendered in 
accordance with the mandate of the United States Court of Appeals 
for the Federal Circuit shall become final upon the expiration of 30 
days from the time such decision of the Court of Veterans Appeals 
was rendered, unless within such 30 days either the Administrator 
102 STAT. 4120 
PUBLIC LAW 100-687—NOV. 18, 1988 
or the petitioner has instituted proceedings to have such decision 
corrected so that it will accord with the mandate, in which event the 
decision of the Court of Veterans Appeals shall become final when 
so corrected. 
"(c) If the Supreme Court orders a rehearing, or if the case is 
remanded by the United States Court of Appeals for the Federal 
Circuit to the Court of Veterans Appeals for a rehearing, and i
f
— 
"(1) the time allowed for filing a petition for certiorari has 
expired and no such petition has been duly filed, or 
"(2) the petition for certiorari has been denied, or 
"(3) the decision of the United States Court of Appeals for the 
Federal Circuit has been affirmed by the Supreme Court, 
then the decision of the Court of Veterans Appeals rendered upon 
such rehearing shall become final in the same manner as though no 
prior decision of the Court of Veterans Appeals had been rendered. 
"(d) As used in this section, the term 'mandate', in case a mandate 
has been recalled before the expiration of 30 days from the date of 
issuance thereof, means the final mandate. 
"§ 4092. Review by United States Court of Appeals for the Federal 
Circuit 
"(a) After a decision of the United States Court of Veterans 
Appeals is entered in a case, any party to the case may obtain a 
review of the decision with respect to the validity of any statute or 
regulation (other than a refusal to review the schedule of ratings for 
disabilities adopted under section 355 of this title) or any interpreta-
tion thereof (other than a determination as to a factual matter) that 
was relied on by the Court in making the decision. Such a review 
shall be obtained by filing a notice of appeal with the Court of 
Veterans Appeals within the time and in the manner prescribed for 
appeal to United States courts of appeals from United States district 
courts. 
"(b)(1) When a judge or panel of the Court of Veterans Appeals, in 
making an order not otherwise appealable under this section, deter-
mines that a controlling question of law is involved with respect to 
which there is a substantial ground for difference of opinion and 
that there is in fact a disagreement between the appellant and the 
Administrator with respect to that question of law and that the 
ultimate termination of the case may be materially advanced by the 
immediate consideration of that question, the judge or panel shall 
notify the chief judge of that determination. Upon receiving such a 
notification, the chief judge shall certify that such a question is 
presented, and any party to the C£ise may then petition the Court of 
Appeals for the Federal Circuit to decide the question. That court 
may permit an interlocutory appeal to be taken on that question if 
such a petition is filed with it within 10 days after the certification 
by the chief judge of the Court of Veterans Appeals. Neither the 
application for, nor the granting of, an appeal under this paragraph 
shall stay proceedings in the Court of Veterans Appeals, unless a 
stay is ordered by a judge of the Court of Veterans Appeals or by the 
Court of Appeals for the Federal Circuit. 
"(2) For purposes of subsections (d) and (e) of this section, an order 
described in this paragraph shall be treated as a decision of the 
Court of Veterans Appeals. 
"(c) The United States Courts of Appeals for the Federal Circuit 
shall have exclusive jurisdiction to review and decide any challenge 
to the validity of any statute or regulation or any interpretation 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4121 
thereof brought under this section, and to interpret constitutional 
and statutory provisions, to the extent presented and necessary to a 
decision. The judgment of such court shall be final subject to review 
by the Supreme Court upon certiorari, in the manner provided in 
section 1254 of title 28. 
"(dXD The Court of Appeals for the Federal Circuit shall decide 
aU relevant questions of law, including interpreting constitutional 
and statutory provisions. The court shall hold imlawful and set aside 
any statute or r^ulation or any interpretation thereof (other than a 
determination as to a factual matter) that was rehed upon in the 
decision of the Court of Veterans Appeals that the Court of Appeals 
for the Federal Circuit finds to be— 
"(A) arbitrary, capricious, an abuse of discretion, or otherwise 
not in accordance with law; 
"(B) contrary to constitutional right, power, privilege, or 
immunity; 
"(C) in excess of statutory jurisdiction, authority, or limita-
tions, or in violation of a statutory right; or 
"(D) without observance of procedure required by law. 
"(2) Except to the extent that an appeal under this chapter 
presents a constitutional issue, the Court of Appeals may not review 
(A) a challenge to a factual determination, or (B) a challenge to a 
law or r^ulation as applied to the facts of a particular case. 
"(eXD Upon such review, the Court of Appeals for the Federal 
Circuit shall have power to affirm or, if the decision of the CJourt of 
Veterans Appeals is not in accordance with law, to modify or reverse 
the decision of the Court of Veterans Appeals or to remand the 
matter, as appropriate. 
"(2) Rules for review of decisions of the CJourt of Veterans Appeals 
shall be those prescribed by the Supreme (Dourt under section 2072 
of title 28.". 
(b) CLERICAL AMENDMENT.—The tables of chapters before part I 
and at the b^inning of part V are each amended by inserting after 
the item relating to chapter 71 the following new item: 
"72. Court of Veterans Appeals 
4051". 
SEC 302. INITIAL APPOINTMENT OF JUDGES TO COURT OF VETERANS 
38 USC 4053 
APPEALS. 
note. 
(a) CJmEF JUDGE TO BE APPOINTED FIRST.—The President may not 
appoint an individual to be an associate judge of the United States 
Court of Veterans Appeals under section 4053(b) of title 38, United 
States Code, as added by section 301, until the chief judge of such 
Court has been appointed. The President shall, during the period President of U.S. 
b^inning on January 21, 1989, and ending on April 1, 1989, nomi-
nate an individual for appointment to the position of chief judge of 
such Court. 
(b) JUDGES.—Subject to subsection (a), judges of the (Dourt of 
Veterans Appeals may be appointed after February 1,1989. 
SEC 303. FACILITY FOR PRINCIPAL OFFICE OF COURT. 
In the implementation of section 4055 of title 38, United States 
Code (as added by section 301), the principal office of the Court of 
Veterans Appeals shall initially be located, if practicable, in a 
facility existing on the date of the enactment of this Act that, as 
determined by the Administrative Office of the United States 
Courts, would facilitate maximum efficiency and economy in the 
operation of the Court. The Administrative Office of the United 
38 USC 4055 
note. 
102 STAT. 4122 
PUBLIC LAW 100-687—NOV. 18, 1988 
States Courts shall take into consideration the convenience of the 
location of such facility to needed library resources, clerical and 
administrative support equipment and personnel, and other re-
sources available for shared use by the Court and other courts or 
agencies of the Federal Government. 
TITLE IV—EFFECTIVE DATES AND 
APPLICABILITY 
38 use 4051 
note. 
38 use 4051 
note. 
38 use 8404 
note. 
SEC. 401. EFFECTIVE DATES. 
(a) GENERAL EFFECTIVE DATE.—Except as otherwise provided in 
this section, this division (and the amendments made by this Act) 
shall take effect on September 1,1989. 
(b) EFFECTIVE DATE FOR CERTAIN TRANSITION PROVISIONS.—The 
amendment made by section 201(a) shall take effect on February 1, 
1989. 
(c) DATE OF ENACTMENT.—Sections 201 (other than subsection (a)), 
208, 209, 302, and 303, and the amendments made by those sections, 
shall take effect on the date of the enactment of this Act. 
(d) BOARD OF VETERANS' APPEALS.—Sections 202 through 207 shall 
take effect on January 1,1989. 
(e) COMMENCEMENT OP OPERATION OF COURT OF VETERANS AP-
PEALS.—Notwithstanding subsection (a), the United States C!ourt of 
Veterans Appeals established pursuant to chapter 72 of title 38, 
United States Code (as added by section 301) shall not begin to 
operate until at least three judges have been appointed to the court. 
SEC. 402. APPLICABILITY TO CASES AFTER DATE OF ENACTMENT. 
Chapter 72 of title 38, United States Code, as added by section 301, 
shall apply with respect to any case in which a notice of disagree-
ment is filed under section 4005 of title 38, United States CJode, on or 
after the date of the enactment of this Act. 
SEC. 403. APPLICABILITY TO ATTORNEYS FEES. 
The amendment to section 3404(c) of title 38, United States Code, 
made by section 104(a) shall apply only with respect to services of 
agents and attorneys in cases in which a notice of disagreement is 
filed with the Veterans' Administration on or after the date of the 
enactment of this division. 
Veterans' 
Benefits 
Improvement 
Act of 1988. 
38 use 101 note. 
DIVISION B—VETERANS' BENEFITS IMPROVEMENT 
SEC. 1001. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
CODE. 
(a) SHORT TITLE.—This division may be cited as the "Veterans' 
Benefits Improvement Act of 1988". 
(b) REFERENCES.—Except as otherwise expressly provided, when-
ever in this division an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of title 38, United States CJode. 
38 use 101 note. 
SEC. 1002. DEFINITION OF ADMINISTRATOR 
For purposes of this division, the term "Administrator" means the 
Administrator of Veterans' Affairs. 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4123 
TTTLE XI—COMPENSATION RATE 
INCREASES 
SEC. 1101. DISABILITY COMPENSATION. 
(a) IN GENERAL.—Section 314 is amended— 
(1) by striking out "$71" in subsection (a) and inserting in lieu 
thereof "$73"; 
(2) by striking out "$133" in subsection (b) and inserting in 
lieu thereof "$138"; 
(3) by striking out "$202" in subsection (c) and inserting in 
^ 
lieu thereof "$210"; 
(4) by striking out "$289" in subsection (d) and inserting in 
Ueu thereof "$300"; 
(5) by striking out "$410" in subsection (e) and inserting in 
lieu thereof "$426"; 
(6) by striking out "$516" in subsection (f) and inserting L
n 
lieu thereof "$537"; 
(7) by striking out "$652" in subsection (g) and inserting in 
Ueu thereof "$678"; 
(8) by striking out "$754" in subsection (h) and inserting in 
Ueu thereof "$784"; 
(9) by striking out "$849" in subsection (i) and inserting in 
Ueu thereof "$883"; 
(10) by striking out "$1,411" in subsection (j) and inserting in 
Ueu thereof "$1,468"; 
(11) by striking out "$1,754" and "$2,459" in subsection (k) 
and inserting in Ueu thex^f "$1,825" and "$2,559", respec-
tively; 
(12) by striking out "$1,754" in subsection G) and inserting in 
Ueu thereof "$1,825"; 
(13) by strikii^ out "$1,933" in subsection (m) and inserting in 
Ueu thereof "$2,012"; 
(14) by striking out "$2,199" in subsection (n) and inserting in 
Ueu thereof "$2,289"; 
(15) by striking out "$2,459" each place it appears in subsec-
tions (o) and (p) and inserting in lieu tiiereof "$2,559"; 
(16) by striking out "$1,055" and "$1,572" in subsection (r) and 
inserting in Ueu thereof "$1,098" and "$1,636", respectively; 
and 
(17) by striking out "$1,579" in subsection (s) and inserting in 
Ueu thereof "$1,643". 
(b) SPECIAL RULE.—^The Administrator may adjust administra- 
38 use 314 note. 
tively, consistent with the increases authorized by this section, the 
rates of disabiUty compensation payable to persons within the pur-
view of section 10 of PubUc Law 85-857 who are not in receipt of 
compensation payable pursuant to chapter 11 of title 38, United 
States Code. 
SEC. 1102. ADDITIONAL COMPENSATION FOR DEPENDENTS. 
Section 315(1) is amended— 
(1) by striking out "$85" in clause (A) and inserting in lieu 
thereof "$88"; 
(2) by striking out "$143" and "$45" in clause (B) and insert-
ing in Ueu thereof "$148" and "$46", respectively; 
102 STAT. 4124 
PUBLIC LAW 100-687—NOV. 18, 1988 
(3) by striking out "$59" and "$45" in clause (C) and inserting 
in lieu thereof "$61" and "$46", respectively; 
(4) by striking out "$69" in clause (D) and inserting in lieu 
thereof "$71"; 
(5) by striking out "$155" in clause (E) and inserting in lieu 
thereof "$161"; and 
(6) by striking out "$131" in clause (F) and inserting in lieu 
thereof "$136". 
SEC. 1103. CLOTHING ALLOWANCE FOR CERTAIN DISABLED VETERANS. 
Section 362 is amended by striking out "$380" and inserting in 
lieu thereof "$395". 
SEC. 1104. 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 
$539 
W-4 
$ 773 
E-2 
555 
0-1 
682 
E-3 
570 
0-2 
704 
E-4 
606 
0-3 
754 
E-5 
622 
0-4 
797 
E-6 
636 
0-5 
879 
E-7 
667 
0-6 
991 
E-8 
704 
0-7 
1,071 
E-9 
»735 
0-8 
1,174 
W-1 
682 
0-9 
1,259 
W-2 
709 
O-IO 
2 1,381 
W-3 
730 
"' If the veteran served as sergeant major of the Army, senior enlisted advisor of the Navy, 
chief master sergeant of the Air Force, sergeant major 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 $794. 
"^ 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 $1,480."; 
(2) by striking out "$60" in subsection (b) and inserting in lieu 
thereof "$62"; 
(3) by striking out "$155" in subsection (c) and inserting in 
lieu thereof "$161"; and 
(4) by striking out "$76" in subsection (d) and inserting in lieu 
thereof "$79". 
SEC. 1105. DEPENDENCY AND INDEMNITY COMPENSATION FOR CHIL-
DREN. 
(a) Die FOR ORPHAN CHILDREN.—Section 413(a) is amended— 
(1) by striking out "$261" in clause (1) and inserting in lieu 
thereof "$271"; 
(2) by striking out "$376" in clause (2) and inserting in lieu 
thereof "$391"; 
(3) by striking out "$486" in clause (3) and inserting in lieu 
thereof "$505"* and 
(4) by striking out "$486" and "$97" in clause (4) and inserting 
in lieu thereof "$505" and "$100", respectively. 
0)) SUPPLEMENTAL D I C FOR DISABLED ADULT CHILDREN.—Section 
414 is amended— 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4125 
(1) by striking out "$155" in subsection (a) and inserting in 
lieu thereof "$I61"; 
(2) by striking out "$261" in subsection (b) and inserting in 
Ueu thereof "$271"; and 
(3) by striking out "$133" in subsection (c) and inserting in 
lieu thereof "$138". 
SEC 1106. EFFECTIVE DATE FOR RATE INCREASES. 
38 USC 314 note. 
The amendments made by this title shall take effect on Decem-
ber 1,1988. 
TITLE XII—AGENT ORANGE AND 
V
i
e
t
n
a
m 
RELATED PROVISIONS 
SEC 1201. FUNDING FOR AGENT ORANGE BLOOD TESTING. 
Funds appropriated to the Veterans' Administration in Public 
Law 98-181 for medical and prosthetic research and obligated 
through the Centers for Disease Control for a contract for the 
conduct of an epidemiological study relating to exptMsure of veterans 
to the herbicide known as Agent Orange shall, upon the cancellation 
of that contract, be available for obligation until September 30,1989, 
in the amounts of— 
(1) $3,000,000 for payment of expenses of the Department of 
the Air Force in connection with blood tests of individuals who, 
while serving in the Air Force, participated in the spraying of 
Agent Orange in Vietnam during the Vietnam era; and 
(2) $1,000,000 for payment of expenses of a survey of scientific 
evidence, studies, and literature relating to health effects of 
possible exposure to toxic chemicals contained in herbicides 
used in the Republic of Vietnam during the Vietnam era, which 
survey shall be conducted by an independent scientific entity 
under contract to the Veterans Administration pursuant to a 
law enacted after the date of the enactment of this Act. 
SEC 1202. EXTENSION OF HEALTH-CARE ELIGIBILITY BASED ON AGENT 
ORANGE OR IONIZING RADIATION EXPOSURE. 
Section 610(eX3) is amended by striking out "September 30, 1989" 
and inserting in lieu thereof "December 31,1990". 
SEC 1203. TREATMENT FOR NEEDS-BASED BENEFITS PURPOSES OF 
AMOUNTS RECEIVED UNDER AGENT ORANGE LITIGATION 
SETTLEMENT. 
Any payment received by any person pursuant to the settlement 
in the case of In re Agent Orange Product Liability Litigation in the 
United States District Court for the Elastern District of New York 
(MDL No. 381) shall be treated for purposes of laws administered by 
the Veterans* Administration as reimbursement for prior unreim-
bursed medical expenses, and no such pajnnent shall be countable as 
income for any such purpose. 
SEC 1204. OUTREACH SERVICES. 
38 USC 241 note. 
(a) ONGOING OUTREACH PROGRAM.—^The Administrator shall con-
duct an active, continuous outreach program for furnishing to veter-
ans of active military, naval, or air service who served in the 
Republic of Vietnam during the Vietnam era information relating 
102 STAT. 4126 
PUBLIC LAW 100-687—NOV. 18, 1988 
(1) the health risks (if any) resulting from exposure during 
that service to dioxin or any other toxic agent in herbicides used 
in support of United States and allied military operations in the 
Republic of Vietnam during the Vietnam era, as such informa-
tion on health risks becomes known; and 
(2) services and benefits available to such veterans with 
respect to such health risks. 
(b) INFORMATION IN AGENT ORANGE REGISTRY.—The Adminis-
trator shall take reasonable actions to organize and update the 
information contained in the Veterans' Administration Agent 
Orange Registry in a manner that enables the Administrator 
promptly to notify a veteran of any increased health risk for such 
veteran resulting from exposure of such veteran to dioxin or any 
other toxic agent referred to in subsection (a) during Vietnam-era 
service in the Republic of Vietnam whenever the Administrator 
determines, on the basis of physical examination or other pertinent 
information, that such veteran is subject to such an increased health 
risk. 
SEC. 1205. RANCH HAND STUDY. 
(a) ADVISORY COMMITTEE PERSONNEL AND SUPPORT.—(1) After Feb-
ruary 28, 1989, not less than one-third of the total number of 
members of the Ranch Hand Advisory Committee shall be individ-
uals selected by the Secretary of Health and Human Services from 
among scientists who are recommended by veterans' organizations 
for membership on the committee and are determined by the Sec-
retary to be qualified for service on the committee. 
(2) A scientist shall be considered to be qualified for service on the 
Ranch Hand Advisory Committee if (A) the scientist heis earned a 
doctor of medicine degree or a doctorate or other advanced degree 
from an institution of higher education in a field relevant to the 
responsibilities of the Advisory Committee and has written one or 
more articles relevant to those responsibilities which have appeared 
in scientific publications following a peer-review process, or (B) the 
scientist has qualifications equivalent to those set forth in clause 
(A). 
(b) CHAIRMAN.—After February 28, 1989, the Chairman of the 
Ranch Hand Advisory Committee may be an officer or employee of 
the Federal Government (other than by reason of service as a 
member of the Advisory Committee) only if the Secretary of Health 
and Human Services determines, after affirmatively seeking to 
recruit a chairman who is not an officer or employee of the Federal 
Government, that there is no individual qualified and available to 
serve as Chairman who is not an officer or employee of the Federal 
Reports. 
Government. The Secretary shall report any such determination to 
the Committees on Veterans' Affairs of the Senate and the^ House of 
Representatives. 
(c) SCHEDULE OF REPORTS.—(1) Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to the Committees on Veterans' Affairs and the Committees 
on Armed Services of the Senate and the House of Representatives a 
schedule of reports to be prepared by the Secretary of the Air Force 
or the Secretary of Defense on the progress and findings of the 
Ranch Hand Study. 
(2) Each report referred to in paragraph (1) shall include the 
following: 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4127 
(A) A discussion of the progress made in the Ranch Hand 
Study during the period covered by the report. 
(B) A summary of the scientific activities conducted during 
that period and the findings resulting from those activities, to 
be prepared by the scientists conducting those activities. 
(3) Such a report need not contain (A) a discussion of progress 
discussed in any other report prepared by the Department of De-
fense (under this section or otherwise) r^arding the Ranch Hand 
Study, or (B) a scientific summary included in any other such report, 
unless modification of such discussion or summary is appropriate for 
completeness, accuracy, and currency. 
(4) The Secretary of Defense shall submit to the committees 
referred to in paragraph (1) a copy of each report referred to that 
paragraph. 
(d) DEFINITIONS.—^For purposes of this section: 
(1) The term "Ranch Hand Advisory Committee" means the 
committee known as the "Advisory Committee on Special 
Studies Relating to the Possible Long-term Health Effects of 
Phenoxy Herbicides and Contaminants" established by the Sec-
retary of Defense to monitor the conduct of the Ranch Hand 
Study. 
(2) The term "Ranch Hand Study" means the special study 
conducted by the Secretary of the Air Force relating to the 
possible long-term health effects of phenoxy herbicides and 
contaminants on Air Force personnel who participated in Oper-
ation Ranch Hand in the Republic of Vietnam during the 
Vietnam era. 
TITLE XIII—REHABILITATION 
PROVISIONS 
SEC 1301. TEMPORARY PROGRAMS OF TRIAL WORK PERIODS AND VOCA-
TIONAL-REHABILITATION EVALUATIONS. 
(a) THREE-YEAR EIXTENSION.—Subsection (aX2XB) of section 363 is 
amended by striking out "January 31, 1989" and inserting in lieu 
thereof "January 31,1992". 
(b) VOLUNTARY PARTICIPATION.—^Subsection (c) of such section is 
amended— 
(1) by striking out paragraphs (2), (3), and (4); 
(2) by striking out "(IXA) Except as provided in paragraph (4) 
of this subsection, in" and inserting in lieu thereof "(1) In"; and 
(3) in paragraph (1)— 
(A) by redesignating clauses (i), (ii), and (iii) as clauses (A), 
(B), and (Q, respectively; and 
(B) by striking out subparagraph (B) and inserting in lieu 
thereof the following: 
"(2) After providing the notice required under paragraph (1) of 
this subsection, the Administrator shall offer the veteran the oppor-
tunity for an evaluation under section 1506(a) of this title.". 
SEC 1302. FUNDING OF EDUCATIONAL AND VOCATIONAL COUNSELING 
SERVICES. 
(a) IN GENERAL.—Subchapter II of chapter 36 is amended by 
addbig at the end the following new section: 
102 STAT. 4128 
PUBLIC LAW 100-687—NOV. 18, 1988 
"§ 1797. Funding of contract educational and vocational counsel-
ing 
"(a) Subject to subsection (b) of this section, educational or voca-
tional counseling services obtained by the Veterans' Administration 
by contract and provided to an individual applying for or receiving 
benefits under section 524 or chapter 30, 32, 34, or 35 of this title, or 
chapter 106 of title 10, shall be paid for out of funds appropriated, or 
otherwise available, to the Veterans' Administration for pa)niient of 
readjustment benefits. 
"(b) Payments under this section shall not exceed $5,000,000 in 
any fiscal year.". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of chapter 36 is amended by inserting after the item relating to 
section 1796 the following new item: 
"1797. Funding of contract educational and vocational counseling.". 
SEC. 1303. VOCATIONAL TRAINING FOR PENSION RECIPIENTS. 
(a) EuGiBiLiTY.—Subsection (aX2) of section 524 is amended by 
striking out "who is awarded pension during the program period 
and inserting in lieu thereof "is awarded pension during the pro-
gram period, or a veteran who was awarded pension before the 
beginning of the program period,". 
(b) 
EXTENSION OF PROGRAM PERIOD.—Subsections (aX4) 
and 
(b)(4XA) of such section are each amended by striking out "Janu-
ary 31, 1989" and inserting in lieu thereof "January 31, 1992". 
(c) HEALTH-CARE ELIGIBILITY.—Section 5250t)X2) is amended by 
striking out "January 31,1989" and inserting in lieu thereof "Janu-
ary 31,1992". 
TITLE XIV—MISCELLANEOUS BENEFIT 
PROVISIONS 
SEC. 1401. LIFE INSURANCE PROGRAMS. 
(a) AUTHORITY FOR PAYMENT OF INTEREST ON INSURANCE SETTLE-
MENTS.—(1) Subchapter I of chapter 19 is amended by adding at the 
end the following new section: 
"§ 728. Authority for payment of interest on settlements 
"(a) Subject to subsection Ot)) of this section, the Administrator 
may pay interest on the proceeds of a participating National Service 
Life Insurance, Veterans' Special Life Insurance, and Veterans 
Reopened Insurance policy from the date the policy matures to the 
date of payment of the proceeds to the beneficiary or, in the case of 
an endowment policy, to the policyholder. 
"(bXD The Administrator may pay interest under subsection (a) of 
this section only if the Administrator determines that the payment 
of such interest is administratively and actuarially sound for the 
settlement option involved. 
"(2) Interest paid under subsection (a) of this section shall be at 
the rate that is established by the Administrator for dividends held 
on credit or deposit in policyholders' accounts under the insurance 
program involved.". 
(2) Subchapter II of chapter 19 is amended by adding at the end 
the following new section: 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4129 
"§ 763. Autliority for payment of interest on settlements 
"(a) Subject to subsection (b) of this section, the Administrator 
may pay interest on the proceeds of a United States Government 
Life Insurance policy from the date the policy matures to the date of 
payment of the proceeds to the beneficiary or, in the case of an 
endowment policy, to the poUc^holder. 
"(bXD The Administrator may pay interest under subsection (a) of 
this section only if the Administrator determines that the pajonent 
of such interest is administratively and actuarially sound for the 
settlement option involved. 
"(2) Interest paid under subsection (a) shall be at the rate that is 
established by the Administrator for dividends held on credit or 
deposit in policyholders' accounts/'. 
(3) The amendments made by this subsection shall take effect with 38 use 728 note. 
respect to insurance policies maturing after the date of the enact-
ment of this Act 
(b) AuTHOBrry To ADJUST DISOOUNT RATES FOR ADVANCE PAYMENT 
OF PREMIUIIS.—(1) Subchapter I of chapter 19, as amended by 
subsection (aXD, is further amended by adding at the end the 
following new section: 
"§ 729. Authority to adjust premium discount rates 
"(a) Notwithstanding sections 702, 723, and 725 of this title and 
subject to subsection (b) of this section, the Administrator may from 
time to time adjust the discount rates for premiums paid in advance 
on National Service life Insurance, Veterans' Special Life Insur-
ance, and Veterans Reopened Insurance. 
"(bXD In adjusting a discount rate pursuant to subsection (a) of 
this section, the Administrator may not set such rate at a rate lower 
than the rate authorized for the program of insurance involved 
under section 702,723, or 725 of this title. 
"(2) The Administrator may make an adjustment under subsec-
tion (a) of this section only if the Administrator determines that the 
adjustment is administratively and actuarially sound for the pro-
gram of insurance involved.". 
(2) The amendment made by paragraph (1) shall take effect with 38 use 729 note. 
respect to premiums paid after the date of the enactment of this Act. 
(c) CLERICAL AMENDMENTS.—^The table of sections at the b^inning 
of chapter 19 is amended— 
(1) by inserting after the item relating to section 727 the 
following new items: 
'^28. Autfaority for payment of interest on settlements. 
"729. Authority to adjust premium disoount rates."; 
and 
(2) by inserting after the item relating to section 762 the 
following new item: 
"763. Authority for payment of interest on settlements.". 
SEC 1402. INCOME EXCLUSION FOR CASUALTY LOSS REIMBURSEMENTS. 
(a) PARENTS DIG.—Clause (D of section 415(0(1) is amended to read 
as follows: 
"(D reimbursements of any kind for any casualty loss (as Regulations. 
defined in regulations which the Administrator shall prescribe), 
but the amount excluded under this clause may not exceed the 
greater of the fair market value or the reasonable replacement 
102 STAT. 4130 
PUBLIC LAW 100-687—NOV. 18, 1988 
value of the property involved at the time immediately preced-
ing the loss;", 
(b) PENSION.—Clause (5) of section 503(a) is amended to read as 
follows: 
Regulations. 
"(5) reimbursements of any kind for any casualty loss (as 
defined in regulations which the Administrator shall prescribe), 
but the amount excluded under this clause may not exceed the 
greater of the fair market value or reasonable replacement 
value of the property involved at the time immediately preced-
ing the loss;". 
SEC. 1403. RECODIFICATION OF PROVISIONS RELATING TO CERTAIN 
BENEFITS FOR SURVIVORS OF CERTAIN VETERANS. 
(a) IN GENERAL.—(1) Subchapter II of chapter 13 is amended by 
adding at the end the following new section: 
"§ 418. BeneHts for survivors of certain veterans rated totally 
disabled at time of death 
"(a) The Administrator shall pay benefits under this chapter to 
the surviving spouse and to the children of a deceased veteran 
described in subsection (b) of this section in the same manner as if 
the veteran's death were service connected. 
"(b) A deceased veteran referred to in subsection (a) of this section 
is a veteran who dies, not as the result of the veteran's own willful 
misconduct, and who was in receipt of or entitled to receive (or but 
for the receipt of retired or retirement pay was entitled to receive) 
compensation at the time of death for a service-connected disability 
that either— 
"(1) was continuously rated totally disabling for a period of 10 
or more years immediately preceding death; or 
"(2) if so rated for a lesser period, w£is so rated continuously 
for a period of not less than five years from the date of such 
veteran's discharge or other releeise from active duty. 
"(c) Benefits may not be paid under this chapter by reason of this 
section to a surviving spouse of a veteran unless— 
"(1) the surviving spouse was married to the veteran for two 
years or more immediately preceding the veteran's death; or 
"(2) a child was born of the marriage or was born to them 
before the marriage. 
"(d) If a surviving spouse or a child receives any money or 
property of value pursuant to an award in a judicial proceeding 
based upon, or a settlement or compromise of, any cause of action 
for damages for the death of a veteran described in subsection (a) of 
this section, benefits under this chapter payable to such surviving 
spouse or child by virtue of this section shall not be paid for any 
month following a month in which any such money or property is 
received until such time as the total amount of such benefits that 
would otherwise have been payable equals the total of the amount of 
the money received and the fair market value of the property 
received. 
"(e) For purposes of sections 1448(d) and 1450(c) of title 10, eligi-
bility for benefits under this chapter by virtue of this section shall 
be deemed eligibility for dependency and indemnity compensation 
under section 411(a) of this title.". 
(2) The table of sections at the beginning of chapter 13 is amended 
by inserting after the item relating to section 417 the following new 
item: 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4131 
"418. Benefits for survivors of certain veterans rated totally disabled at time of 
death.". 
(b) CONFORMING AMENDMENTS.—Section 410 is amended by strik-
ing out subsection 0)) and redesignating subsection (c) as subsection 
(b). 
SEC. 1404. SPECIFICATION IN BUDGET SUBMISSIONS OF FUNDS FOR CER- 38 USC 210 note. 
TAIN VETERANS BENEFITS. 
(a) BUDGET INFORMATION.—In the documentation providing de-
tailed information on the budgets for the Veterans' Administration 
and the Department of Labor that the Administrator and the Sec-
retary of Labor, respectively, submit 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 Administrator 
and the Secretary shall identify, to the m£iximum extent feasible, 
the estimated amount in each of the appropriation requests for 
Veterans' Administration accounts and Department of Labor ac-
counts, respectively, that is to be obligated for the furnishing of each 
of the following services or benefits only to, or with respect to, 
veterans who performed active military, naval, or ai^- service in 
combat with the enemy or in a theatre of combat operations during 
a period of war or other hostilities: 
(1) Employment services and other employment benefits 
under programs administered by the Secretary of Labor. 
(2) Compensation under chapter 11 of title 38, United States 
Code. 
(3) Dependency and Indemnity Compensation under chapter 
13 of such title. 
(4) Pension under chapter 15 of such title. 
(5) Inpatient hospital care under chapter 17 of such title. 
(6) Outpatient medical care under chapter 17 of such title. 
(7) Nursing home care under chapter 17 of such title. 
(8) Domiciliary care under chapter 17 of such title. 
(9) Readjustment counseling services under section 612A of 
such title. 
(10) Insurance under chapter 19 of such title. 
(11) Specially adapted housing for disabled veterans under 
chapter 21 of such title. 
(12) Burial benefits under chapter 23 of such title. 
(13) Educational assistance under chapters 30, 32, and 34 of 
such title and chapter 106 of title 10, United States Cllode. 
(14) Vocational rehabilitation services under chapter 31 of 
title 38, United States Code. 
(15) Survivors' and dependents' educational assistance under 
chapter 35 of such title. 
(16) Home loan benefits under chapter 37 of such title. 
(17) Automobiles and adaptive equipment under chapter 39 of 
such title. 
(b) REPORT ON FEASIBIUTY.—If the Administrator or the Secretary 
of Labor determines that, with respect to any services or benefits 
referred to in subsection (a), it is not feasible to identify an esti-
mated dollar amount to be obligated for furnishing such services or 
benefits only to veterans described in that subsection for any fiscal 
year, the Administrator and the Secretary shall, with respect to an 
appropriation request for such fiscal year relating to such services 
or benefits, report to the Committees on Veterans' Affairs of the 
Senate and the House of Representatives the reasons for the infeasi-
102 STAT. 4132 
PUBLIC LAW 100-687—NOV. 18, 1988 
bility. The report shaU be submitted contemporaneously with the 
budget submission for such fiscal year. The report shall specify (1) 
the information, systems, equipment, or personnel that would be 
required in order for it to be feasible for the Administrator or the 
Secretary to identify such amount, and (2) the actions to be taken in 
order to ensure that it will be feasible to make such an estimate in 
connection with the submission of the budget request for the next 
fiscal year. 
TITLE XV—HEALTH CARE 
SEC. 1501. READJUSTMENT COUNSELING FACILITIES. 
(a) RELOCATIONS FOR CIRCUMSTANCES BEYOND CONTROL OP VETER-
ANS' ADIONISTRATION.—Section 612A(gXl) is amended— 
(1) in subparagraph (A), by striking out "The" and inserting 
in lieu thereof "Except as provided in subparagraph (C) of this 
paragraph, the"; and 
(2) by adding at the end the following new subparagraph: 
"(C) The Administrator may relocate a center in existence on 
January 1,1988, without r^ard to the national plan (including any 
revision to such plan) if such relocation is to a new location away 
from a Veterans' Administration general health-care facility when 
such relocation is necessitated by circumstances beyond the control 
of the Veterans' Administration. Such a relocation may be carried 
out only after the end of the 30-day period b^inning on the date on 
which the Administrator notifies the Committees on Veterans' Af-
fairs of the Senate and the House of Representatives of the proposed 
relocation, of the circumstances making it necessary, and of the 
reason for the selection of the new site for the center.". 
38 use 612A 
(b) AUTHORIZATION FOR RELOCATION OF CERTAIN FACILITIES.—The 
note. 
requirements of section 612A(gXl) of title 38, United States Code, 
shall not apply with respect to the relocation of 17 Veterans' 
Administration Readjustment Counseling Service Vet Centers from 
their locations away from general Veterans* Administration health-
care facilities to other such locations, as described in letters dated 
July 25, 1988, from the CJhief Medical Director of the Veterans' 
Administration to the Chairmen of the Committees on Veterans' 
Affairs of the Senate and the House of Representetives. 
SEC. 1502. CONTRACTS AND GRANTS FOR MEDICAL CARE FOR VETERANS 
IN THE PHILIPPINES. 
(a) ONE-YEAR EXTENSION.—Subsections (a) and (bXD of section 632 
are each amended by striking out "September 30, 1989" and insert-
ing in Ueu thereof "September 30,1990^'. 
(b) INCREASE IN ANNUAL AUTHORIZATION.—Subsection (bXD 
of 
such section is further amended by striking out "$500,0()0" and 
inserting in lieu thereof "$1,000,000,'^'. 
(c) REPORTS.—(1) Not later than February 1, 1989, and not later 
than February 1, 1990, the Administrator shall submit to the 
Committees on Veterans' Affairs of the Senate and House of Rep-
resentatives a report containing detailed information describing the 
use of funds provided to the Republic of the Philippines under 
section 632(b) of title 38, United States Code, during the preceding 
fiscal year. 
(2) Not later than May 1,1989, the Administrator shall submit to 
those committees a report with respect to the furnishing of health-
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4133 
care services to United States veterans in the Republic of the 
Philippines. That report shall include the following: 
(A) Information for each of fiscal years 1986, 1987, and 1988 
(shown in total and separately for veterans being furnished care 
or treatment for service-connected disabilities and veterans 
being furnished care or treatment for non-service-connected 
disabilities) as to— 
(i) the number of United States veterans furnished care 
at Veterans' Administration expense pursuant to sections 
624 and 632(a) of title 38, United States Code; 
(ii) the numbers of inpatient days of care and outpatient 
visits so furnished for United States veterans; and 
(iii) the amounts of such care and visits so furnished at 
the Veterans Memorial Medical Center or at other facilities 
in the Republic of the Philippines. 
(B) An analysis comparing (i) the cost-effectiveness of furnish-
ing care and treatment to such veterans through the Veterans 
Memorial Medical Center or other facilities in the Republic of 
the Philippines, and (ii) the quality of care available at the 
Center and such other facilities. 
(C) A projection of the needs for care and treatment of United 
States veterans in the Republic of the Philippines during each 
of fiscal years 1990,1991,1992, and 1993. 
(D) A projection of the needs of the Veterans Memorial 
Medical Center for each of those fiscal years for the replace-
ment and upgrading of equipment and the rehabilitation of the 
physical plant and facilities in order to maintain the provision 
of an appropriate quality of care for United States veterans at 
the Veterans Memorial Medical Center. 
(E) The plans of the Veterans' Administration for meeting the 
needs for care and treatment of United States veterans residing 
in the Philippines. 
(F) Any planned administrative action, and any recommen-
dation 
for 
legislation, that 
the Administrator 
considers 
appropriate. 
(3) The report under paragraph (2) shall include any comment the 
Secretary of State may wish to make on the contents of the report. 
SEC. 1503. TECHNICAL CORRECTIONS. 
(a) CORRECTIONS NECESSITATED BY AMENDMENTS MADE BY PUBUC 
LAW 100-322.—(1) Section 603(a)(2XB) is amended— 
(A) by striking out "612(a)(4)" and inserting in lieu thereof 
"paragraph (2), (3), or (4) of section 612(a)"; and 
(B) by striking out "612(aX5)" and inserting in lieu thereof 
"612(a)(5XB)". 
(2) Section 4114(a) is amended— 
(A) in paragraph (1)— 
(i) in clause (A), by inserting "pharmacists, occupational 
therapists," after "vocational nurses,"; and 
(ii) in clause (B), by inserting "pharmacists and occupa-
tional therapists," after "vocational nurses,"; and 
(B) in paragraph (3XD), by striking out "the category" and all 
that follows through "vocational nurses" and inserting in lieu 
thereof "a category of personnel described in such section 
4104(3)". 
102 STAT. 4134 
PUBLIC LAW 100-687—NOV. 18, 1988 
(3) Subsections (c) and (d) of section 4323 are each amended by 
striking out "section 4322(f)" and inserting in lieu thereof "section 
4322(e)". 
(4) Section 4324 is amended— 
(A) in subsection (aX2)— 
(i) by striking out "completion" and all that follows 
through "quarter" and inserting in lieu thereof "participa-
tion in the program"; 
(ii) by inserting "or is payable" after "paid"; and 
(iii) by inserting before the period at the end the follow-
ing: ", reduced by the proportion that the number of days 
served for completion of the service obligation bears to the 
total number of days in the participant's period of obligated 
service"; and 
(B) in subsection (b)— 
(i) by striking out paragraph (1); and 
(ii) by striking out "(2)". 
38 use 603 note. 
(b) EFFECTIVE DATE.—The amendments made by subsection (aXD 
shall apply with respect to the furnishing of medical services by 
contract to veterans who apply to the Veterans' Administration for 
medical services after June 30,1988. 
38 use 603 note. 
(c) RATIFICATION.—Any action of the Administrator in contracting 
with facilities other than Veterans' Administration facilities for the 
furnishing of medical services (as defined in section 601(6) of title 38, 
United States C!ode), for the purpose described in section 612(aX5XB) 
of such title, to an individual described in paragraph (2) or (3) of 
section 612 of title 38, United States Code, who applied to the 
Veterans' Administration for such services during the period begin-
ning on July 1,1988, and ending on the date of enactment of this Act 
is hereby ratified. 
SEC. 1504. LAND TRANSFER, RUTHERFORD, TENNESSEE. 
(a) AUTHORITY.—Subject to subsections 0)) and (c) and any condi-
tions required by the Administrator under subsection (d), the 
Administrator shall transfer all right, title, and interest of the 
United States in and to a tract of land consisting of (not to exceed) 
seven acres, together with improvements thereon, in the Southeeist 
corner of the Alvin C. York Veterans' Administration Medical 
Center in Rutherford County, Tennessee. Such transfer shall be 
made without consideration. Such transfer shall be made without 
regard to section 5022(aX2XA) of title 38, United States Code. 
(b) PERMITTED USE.—The transfer under subsection (a) may be 
made only if it is subject to the condition that the property trans-
ferred be used by the State of Tennessee for a nursing care facility 
in accordance with the conditions and limitations applicable to State 
home facilities constructed with assistance under subchapter III of 
chapter 81 of title 38, United States Code, and that if such property 
is used at any time for any other purpose, all right, title, and 
interest in the property shall revert to the United States. 
(c) AVAILABILITY OF RESOURCES.—The transfer under subsection (a) 
may be made only if the Administrator has determined that the 
State of Tennessee h£is provided sufficient assurance that it has the 
resources (including any resources which are reasonably likely to be 
available to the State under subchapter III of chapter 81 of title 38, 
United States Code and section 641 of such title) necessary to 
construct and operate a State home nursing facility. 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4135 
(d) ADDITIONAL CONDITIONS.—^The transfer under subsection (a) 
shall be made under such additional terms and conditions as the 
Administrator considers appropriate to protect the interests of the 
United States. 
SEC. 1505. TRANSFERS OF EXCESS PROPERTIES FOR STATE HOME FACIL-
ITY USES. 
Section 5022(a) is amended— 
(1) in paragraph (2XA), by striking out "The" and inserting in 
Ueu thereof "Except as provided in paragraph (3) of this subsec-
tion, the"; and 
(2) by adding at the end the following new paragraph: 
"(3XA) Subject to subparagraph (B) of this paragraph, the 
Administrator may, without r^ard to paragraph (2) of this subsec-
tion or any other provision of law relating to the disposition of real 
property by the United States, transfer to a State for use as the site 
of a State hmne nursing-home or domiciliary facility real property 
described in subparagraph (E) of the paragraph which the Adminis-
trator determines to be excess to the needs of the Veterans' 
Administration. 
"(B) A transfer of real property may not be made under this 
paragraph unless— 
"(i) the Administrator has determined that the State has 
provided sufficient assurance that it has the resources (includ-
ing any resources which are reasonably likely to be available to 
the State under subchapter III of chapter 81 of this title and 
section 641 of this title) necessary to construct and operate a 
State home nursing or domiciliary care facility; and 
"(ii) the transfer is made s u b j ^ to the conditions (1) that the 
property be used by the State for a nursing-home or domiciliary 
care facility in accordance with the conditions and limitations 
applicable to State home facilities constructed with assistance 
under subchapter HI of chapter 81 of this title, and (II) that, if 
the property is used at any time for any other purpose, all right, 
title, and interest in and to the property shall revert to the 
United States. 
"(C) A transfer of real property may not be made under this 
paragraph until— 
"(i) the Administrator submits to the Committees on Veter- Reports. 
ans' Affairs of the Senate and House of Representatives, not 
later than June 1 of the year in which the transfer is proposed 
to be made (or the year preceding that year), a report providing 
notice of the proposed transfer, and 
"(ii) a period of 90 consecutive days elapses after the report is 
received by those committees. 
"(D) A transfer under this paragraph shall be made under such 
additional terms and conditions as the Administrator considers 
appropriate to protect the interests of the United States. 
"(E) Real property described in this subpar£igraph is real property 
that is owned by the United States and administered by the Veter-
ans' Administration.". 
SEC 1506. CONVERSION OF NON-PHYSICIAN MEDICAL CENTER DIREC-
TORS TO SENIOR EXECUTIVE SERVICE. 
(a) CONVERSION.—Section 4101(e) is amended by striking out "and 
persons appointed under section 4103(aX8) of this title". 
(b) CONFORMING AMENDMENTS.—(1) Section 4103(a) is amended— 
102 STAT. 4136 
PUBLIC LAW 100-687—NOV. 18, 1988 
(A) by striking out paragraph (8); and 
(B) by redesignating paragraph (9) as paragraph (8). 
(2) Section 4107(c) is amended to read as follows: 
"(c) Notwithstanding the provisions of section 4101(e) of this title, 
any person appointed under section 4103 of this title who is not 
eligible for special pay under section 4118 of this title shall be 
deemed to be a career appointee for the purposes of sections 4507 
and 5384 of title 5.". 
38 use 4103 
(c) APPLICABIUTY TO CURRENT DIRECTORS.—(1) Except as provided 
note. 
in paragraph (2), each person who, on the day before the date of 
enactment of this Act, holds an appointment as a director under 
section 4103(a)(8) of title 38, United States Code, shall, on such date 
of enactment, become a career appointee in the Senior Executive 
Service established pursuant to chapter 31 of title 5, United States 
Code. The preceding sentence applies without regard to the provi-
sions of subsections (b), (c), and (e) of section 3393 of title 5, United 
States Code, or any other provision of law. The provisions of section 
3393(d) of such title shall not apply to a director who becomes a 
career appointee pursuant to this paragraph. 
(2) Any person who, on the day before the date of the enactment of 
this Act, holds an appointment as such a director may, not later 
than 60 days after such enactment date, elect to retain the terms 
and conditions of that appointment for as long as that person 
continues to serve as such a director. 
38 use 4103 
(d) PRESERVATION OF PAY.—This section and the amendments 
note. 
made by this section shall not result in a reduction in the rate of pay 
payable to any person. 
SEC. 1507. PROCUREMENT THROUGH LOCAL CONTRACTS. 
(a) EFFECTIVE DATES OF PROVISIONS ENACTED IN PUBUC LAW 100-
322.—Section 403(b)(1) of the Veterans' Benefits and Services Act of 
38 use 5025 
1988 (Public Law 100-322; 102 Stat. 545) is amended by striking out 
note. 
"Subsection (b)(1)" and inserting in lieu thereof "Subsections (a), 
(b)(1), and (bX2)". 
(b) TRANSITION TO CERTAIN REPORT REQUIREMENTS.—Section 
5025(d) is amended— 
(1) in paragraph (1), by inserting "(beginning in 1992)" after 
"of each year"; 
(2) in paragraph (2), by inserting "(beginning in 1993)" after 
"of each year"; and 
(3) by adding at the end the following new paragraph: 
"(3) Not later than February 1 of each year from 1989 through 
1992, the Administrator shall submit to the Committees on Veter-
ans' Affairs of the Senate and the House of Representatives a report 
on the experience in carrying out this section during the preceding 
fiscal year. The first such report shall contain information showing 
the percentage (measured by cost) of the total of all health-care 
items procured by the Veterans' Administration during fiscal year 
1988 that were procured through local contracts. The other reports 
under this paragraph shall contain information showing the 
percentage (measured by cost) of the total of all health-care items 
procured by the Veterans' Administration, and by each Veterans' 
Administration medical center, during the fiscal year covered by the 
report that were purchased through local contracts and, in the case 
of each medical center at which the percentage was greater than 20 
percent, an explanation of the reasons why that occurred.". 
PUBLIC LAW 100-687—NOV. 18, 1988 
102 STAT. 4137 
(c) DEFINITION OF HEALTH-CARE ITEM.—Section 5025(eXl) is 
amended— 
(1) by striking out "65, 66, or 73" and inserting in lieu thereof 
"65 or 66"; and 
(2) by inserting after the Hrst sentence the following new 
sentence: "Effective December 1, 1992, such term also includes 
any item listed in, or (as determined by the Administrator) of 
the same nature as an item listed in, Feideral Supply Classifica-
tion (FSO Group 73.". 
SEC 1508. STANDARDIZATION OF COVERAGE OF MEDICAL AND PHARMA-
CEUTICAL ITEMS. 
Section 402 of the Veterans' Benefits and Services Act of 1988 
(Public Law 100-322; 102 Stat. 543) is amended in the first sentence 
38 USC 5025 
by striking out "medical and pharmaceutical items" and inserting note. 
in lieu thereof "health-care items (as defined in section 5025(eXl) of 
title 38, United States Code)". 
SEC. 1509. TECHNICAL CLARIFICATION OF PERIOD OF CLINICAL EVALUA-
TION OF ALCOHOL AND DRUG ABUSE PROGRAM. 
Section 620A(fXl) (as amended by section 502 of the Veterans' 
Benefits and Programs Improvement Act of 1988) is amended by 
striking out "before October 1, 1997" and inserting in lieu thereof 
"during the period beginning on December 1, 1988, and ending on 
October 1,1997". 
TITLE XVI—CEMETERY AND MEMORIAL 
PROVISIONS 
SEC. 1601. EXTENSION OF AUTHORIZATION OF APPROPRIATIONS FOR 
STATE CEMETERY GRANT PROGRAM. 
Paragraph (2) of section 1008(a) is amended by striking out "four" 
the second place it appears and inserting in lieu thereof "nine". 
SEC. 1602. PACIFIC WAR MEMORIAL AND OTHER HISTORICAL AND 
36 USC 125b. 
MEMORIAL SITES ON CORREGIDOR IN THE REPUBLIC OF THE 
PHILIPPINES. 
(a) OPERATION BY ABMC.—^Subject to subsection (b) and to the 
agreement referred to in such subsection, the American Battle 
Monuments Commission shall restore, operate, and maintain the 
Pacific War Memorial and other historical and memorial sites on 
Corridor in the Republic of the Philippines. 
(b) CONDITION.—The Commission may carry out this section only 
after an agreement has been entered into between the Republic of 
the Philippines and the United States with respect to the restora-
tion, operation, and maintenance of the Memorial and other histori-
cal and memorial sites referred to in subsection (a). 
(c) PERSONNEL.—^The Commission may employ personnel as may 
be necessary to carry out this section. 
(d) USE OF OTHER AGENCIES.—Departments, agencies, and other 
instrumentalities of the United States are authorized to assist the 
Commission, on a reimbureable basis, in carrying out this section. 
(e) FUNDING.—The American Battle Monuments Commission 
shall carry out this section with private funds except to the extent 
funds are appropriated pursuant to subsection (h). 
102 STAT. 4138 
PUBLIC LAW 100-687—NOV. 18, 1988 
(f) AUTHORITY TO SOUCIT FUNDS.—For the purpose of carrying out 
this section, the Commission may solicit and accept private contribu-
tions and shall deposit such contributions in the fund established by 
subsection (g). 
(g) FUND,—(1) There is hereby established in the Treasury a fund 
which shall be available to the American Battle Monuments 
Commission only for carrying out this section. The fund shall consist 
of— 
(A) amounts deposited into, and interest and proceeds cred-
ited to, the fund under paragraph (2); and 
(B) obligations obtained under paragraph (3). 
(2) The Chairman of the Commission shall deposit into the fund 
the amounts that are accepted under subsection (f). The Secretary of 
the Treasury shall credit to the fund the interest on, and the 
proceeds from sale or redemption of, obligations held in the fund. 
(3) The Secretary of the Treasury shall invest any portion of the 
fund that, as determined by the Chairman of the Commission, is not 
required to meet current expenses. Each investment shall be made 
in an interest-bearing obligation of the United States or an obliga-
tion guaranteed as to principal and interest by the United States 
that, as determined by the Chairman of the Commission, has a 
maturity suitable for the fund. 
(4) Amounts in the fund that are in excess of the costs of carrying 
out this section, as determined by the Chairman of the Commission, 
shall be deposited in the Treasury as miscellaneous receipts to 
reimburse the United States for funds appropriated pursuant to 
subsection (h). 
(h) AUTHORIZATION OF FUNDING.—There are hereby authorized to 
be appropriated— 
(1) $6,000,000 for site preparation, design, planning, construc-
tion, and associated administrative costs for the restoration of 
the Memorial and other historical and memorial sites referred 
to in subsection (a); and 
(2) such sums as may be necessary for the operation and 
maintenance of such Memorial and other historical and memo-
rial sites. 
Approved November 18, 1988. 
LEGISLATIVE HISTORY—S. 11 (H.R. 5288): 
HOUSE REPORTS: No. 100-963, Pt. 1, accompanying H.R. 5288 (Comm. on Veterans' 
Affairs). 
SENATE REPORTS: No. 100-418 (Comm. on Veterans' Affairs). 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
July 11, considered and passed Senate. 
Oct. 3, H.R. 5288 considered and passed House; proceedings vacated and S. 11, 
amended, passed in lieu. 
Oct, 18, Senate concurred in certain House amendment with an amendment 
and disagreed to another. 
Oct, 19, House receded and concurred in Senate amendment with amend-
ments. 
Oct. 20, Senate concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 24 (1988): 
Nov. 18, Presidential statement.