Veterans' Disability Compensation, Housing, and Memorial Benefits Amendments of 1981
PL 97-66 (S.917), enacted 10/17/1981

95 STAT. 1026 
PUBLIC LAW 97-66—OCT. 17, 1981 
Oct. 17, 1981 
[S. 917] 
Veterans' 
Disability 
Compensation, 
Housing, and 
Memorial 
Benefits 
Amendments of 
198L 
38 use 101 note. 
Public Law 97-66 
97th Congress 
An Act 
To amend title 38, United States C!ode, to increase the rates of disability compensation 
for disabled veterans, to increase the rates of dependency and indemnity compensa-
tion for the surviving spouses and children of disabled veterans, to authorize the 
Administrator of Veterans' Affairs to guarantee home loans with provisions for 
graduated-payment plans, to increase the maximum amount payable under the 
Veterans' Administration automobile assistance and specially adapted housing 
assistance programs, to expand eligibility for memorial markers, to require advance 
notification to Congress regarding certieun Veterans' Administration reorganiza-
tions, and to limit expenditures of medical appropriations in connection with 
contracting-out studies; and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
SHORT TITLE; AMENDMENTS TO TITLE 38, UNITED STATES CODE 
SECTION 1. (a) This Act mav be cited as the "Veterans' Disabihty 
Compensation, Housing, and Memorial Benefits Amendments of 
198r. 
(b) Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is. expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of title 38, United 
States Code. 
TITLE I—VETERANS' DISABILITY COMPENSATION 
BENEFITS 
94 Stat. 1528. 
38 use 314. 
INCREASES IN RATES OF DISABILITY COMPENSATION 
SEC. 101. (a) Section 314 is amended— 
(1) by striking out "$54" in subsection (a) and inserting in lieu 
thereof "$58"; 
(2) by striking out "$99" in subsection (b) and inserting in lieu 
thereof "$107"; 
(3) by striking out "$150" in subsection (c) and inserting in lieu 
thereof "$162"; 
(4) by striking out "$206" in subsection (d) and inserting in lieu 
thereof "$232"; 
(5) by striking out "$291" in subsection (e) and inserting in lieu 
thereof "$328"; 
(6) by striking out "$367" in subsection (f) and inserting in lieu 
thereof "$413"; 
(7) by striking out "$434" in subsection (g) and inserting in lieu 
thereof "$521"; 
(8) by striking out "$503" in subsection (h) £ind inserting in lieu 
thereof "$604"; 
(9) by striking out "$566" in subsection (i) and inserting in lieu 
thereof "$679"; 
PUBLIC LAW 97-66—OCT. 17, 1981 
95 STAT. 1027 
(10) by striking out "$1,016" in subsection (j) and inserting in 
Ueu thereof "$1,130"; 
(11) by striking out "$1,262" and "$1,768" in subsection (k) and 
inserting in lieu thereof "$1,403" and "$1,966", respectively; 
(12) by striking out "$1,262" in subsection (1) and inserting in 
lieu thereof "$M03"; 
(13) by striking out "$1,391" in subsection (m) and inserting in 
lieu thereof "$1,547"; 
(14) by striking out "$1,581" in subsection (n) and inserting in 
lieu thereof "$1,758"; 
(15) by striking out "$1,768" each place it appears in subsec-
tions (o) and (p) and inserting in lieu thereof "$1,966"; 
(16) by striking out "$759^' and "$1,130" in subsection (r) and 
inserting in lieu thereof "$844" and "$1,257", respectively; 
(17) by striking out "$1,137" in subsection (s) and inserting in 
lieu thereof "$1,264"; and 
(18) by striking out "$219" in subsection (t) and inserting in 
lieu thereof "$244". 
(b) The Administrator of Veterans' Affairs may adjust administra- ^^ use 314 note. 
tively, consistent with the increases authorized by this section, the 
rates of disability compensation payable to persons within the pur-
view of section 10 of Public Law 85-857 who are not in receipt of 38 use note 
compensation payable pursuant to chapter 11 of title 38, United ^l^^i}^\ 
States Code. 
""" 
INCREASES IN RATES OF ADDITIONAL COMPENSATION FOR DEPENDENTS 
SEC. 102, Section 315(1) is amended— 
(1) by striking out "$62" in clause (A) and inserting in lieu 
thereof"$69"; 
(2) by striking out "$104" in clause (B) and inserting in lieu 
thereof"$116"; 
(3) by striking out "$138" in clause (C) and inserting in lieu 
thereof "$153"; 
(4) by striking out "$173" and "$34" in clause (D) and inserting 
in lieu thereof'^$192" and "$38", respectively; 
(5) by striking out "$42" in clause (E) and inserting in lieu 
thereof "$47"; 
(6) by striking out "$77" in clause (F) and inserting in lieu 
thereof "$86"; 
(7) by striking out "$111" and "$34" in clause (G) and inserting 
m lieu thereof'^$123" and "$38", respectively; 
(8) by striking out "$50" in clause (H) and inserting in lieu 
thereof "$56"; 
(9) by striking out "$112" in clause (I) and inserting in lieu 
thereof "$125"; and 
(10) by striking out "$94" in clause (J) and inserting in lieu 
thereof ^^$105". 
38 use 301 et 
seq. 
94 Stat. 1529. 
38 use 315. 
INCREASE IN CLOTHING ALLOWANCE FOR CERTAIN DISABLED VETERANS 
SEC. 103. Section 362 is amended by striking out "$274" and 94 Stat. 1529. 
inserting in lieu thereof "$305". 
"" """ """ 
38 use 362. 
INCREASES IN COMPENSATION PAYABLE TO CERTAIN SEVERELY DISABLED 
VETERANS 
SEC. 104. Section 314 is amended— 
38 u s e 314. 
95 STAT. 1028 
PUBLIC LAW 97-66—OCT. 17, 1981 
(1) in subsection G), by striking out "both hands, or"; 
(2) in subsection (m), by striking out "two extremities at a level, 
or with complications, preventing natural elbow or knee action 
with prosthesis" and inserting in lieu thereof "both hands, or of 
both legs at a level, or with complications, preventing natural 
knee action with prostheses in place, or of one arm and one leg at 
levels, or with compUcations, preventing natural elbow and knee 
action with prostheses"; 
(3) in subsection (n), by striking out "of two extremities so near 
the shoulder or hip as to prevent the use of a prosthetic 
appliance" and inserting in lieu thereof "or loss of use of both 
arms at levels, or with complications, preventing natural elbow 
action with prostheses in place, has suffered the anatomical loss 
of both legs so near the hip as to prevent the use of prosthetic 
appliances, or has suffered the anatomical loss of one arm and 
one leg so near the shoulder and hip as to prevent the use of 
prosthetic appliances,"; and 
(4) in subsection (o), by inserting "or if the veteran has suffered 
the anatomical loss of both arms so near the shoulder as to 
prevent the use of 
prosthetic appliances," after "less,". 
TITLE n-^URVIVORS' DEPENDENCY AND INDEMNITY 
COMPENSATION BENEFITS 
INCREASES IN RATES OF DEPENDENCY AND INDEMNITY COMPENSATION 
FOR SURVIVING SPOUSES 
94 Stat. 1529. 
SEC. 201. (a) SubsectioD (a) of section 411 is amended to read as 
38 use 411. 
follow-
"(a) Dependency and indemnity compensation shall be paid to a 
surviving spouse, based on the pay grade of the person upon whose 
death entitlement is predicated, at monthly rates set forth in the 
following table: 
Monthly 
Monthly 
"Pay 
grade 
rate 
"Pay 
grade 
rate 
EM 
$415 
W-4 
$595 
E-2 
428 
0-1 
525 
E-3 
438 
0-2 
542 
E-4 
466 
0-3 
580 
E-5 
479 
0-4 
613 
E-6 
490 
0-5 
676 
E-7 
514 
0-6 
761 
E-8 
542 
0-7 
824 
E-9 
»567 
0-8 
903 
W-1 
525 
0-9 
970 
W-2 
546 
O-IO 
21^061 
W-3 
562 
" * If the veteran served aa sergeant nugor of the Army, senior enlisted advisor of the Navy, chief master 
sergeant of the Air Force, sergeant me^r of the Marine Corps, or master chief petty officer of the Coast 
Guard, at the applirable time designated by section 402 of this title, the surviving spouse's rate shall be 
$610. 
"2 If the veteran served as Chairman of the Joint Chiefs of Stetff, Chief of Staff of the Army, Chief of 
Naval Operations, Chief of Sttdff of the Air Force, or Commandant of the Marine Corps, at the applicable 
time designated by section 402 of this title, the surviving spouse's rate shall be $1,138.". 
(b) Subsection (b) of such section is amended by striking out "$43" 
and inserting in lieu thereof "$48". 
(c) Subsection (c) of such section is amended by striking out "$112" 
and inserting in lieu thereof "$125". 
PUBLIC LAW 97-66—OCT. 17, 1981 
95 STAT. 1029 
(d) Subsection (d) of such section is amended by striking out "$56" 
and inserting in lieu thereof "$62". 
INCREASES IN RATES OF DEPENDENCY AND INDEMNITY COMPENSATION 
FOR CHILDREN 
SEC. 202. Section 413 is amended— 
9
4 Stat. 1530. 
(1) by striking out "$189" in clause (1) and inserting in lieu ^^ "^^^ ^^'^• 
thereof "$210"; 
(2) by striking out "$271" in clause (2) and inserting in lieu 
thereof "$301"; 
(3) by striking out "$350" in clause (3) and inserting in lieu 
thereof "$389"; and 
(4) by striking out "$350" and "$71" in clause (4) and inserting 
in lieu thereof'^$389" and "$79", respectively. 
INCREASES IN RATES OF SUPPLEMENTAL DEPENDENCY AND INDEMNITY 
COMPENSATION FOR CHILDREN 
SEC. 203. Section 414 is amended— 
^ Stat Iff-
(1) by striking out "$112" in subsection (a) and inserting in lieu 
thereof "$125"; 
(2) by striking out "$189" in subsection (b) and inserting in lieu 
thereof "$210"; and 
(3) by striking out "$96" in subsection (c) and inserting in lieu 
thereof "$107". 
MISCELLANEOUS D E P E N D E N C Y A N D I N D E M N I T Y COMPENSATION 
AMENDMENTS 
SEC. 204. (a) Section 413 is amended by inserting "(a)" before 38 use 413. 
"Whenever", and by adding at the end the following new subsection: 
"(b) If dependency and indemnity compensation has been awarded 
under this section to a veteran's child or children and the entitlement 
to dependency and indemnity compensation under this section of an 
additional child of that veteran who is over the age of eighteen years 
and who had previously been entitled to dependency and indemnity 
compensation under this section before becoming eighteen years of 
age is later reestablished effective retroactively upon determination 
that such child is pursuing a course of instruction at an approved 
educational institution, the amount payable retroactively to the 
additional child is the amount equal to the difference between the 
total of the increased award payable under this section to the 
children of the deceased veteran for the retroactive period and the 
prior total award for such purpose for that period.". 
(b) Section 3010(e) is amended— 
38 use 30io. 
(1) by striking out "The" and inserting in lieu thereof "(1) 
Except as provided in paragraph (2) of this subsection, the"; and 
(2) by adding at the end the following new paragraph: 
"(2) In the case of a child who is eighteen years of age or over and 
who immediately before becoming eighteen years of age was counted 
under section 411(b) of this title in determining the amount of the ^«^e. P- 1028. 
dependency and indemnity compensation of a surviving spouse, the 
effective date of an award of dependency and indemnity compensa-
tion to such child shall be the date the child attains the age of 
eighteen years if application therefor is received within one year 
from such date.". 
95 STAT. 1030 
PUBLIC LAW 97-66—OCT. 17, 1981 
TITLE in—AUTOMOBILE ASSISTANCE AND ADAPTIVE 
EQUIPMENT 
INCREASE IN AUTOMOBILE ASSISTANCE AMOUNT 
38 use 1902. 
SEC. 301. Section 1902(a) is amended by striking out "$3,800" and 
inserting in lieu thereof "$4,400". 
EXTENSION OF EUGIBIUTY FOR ADAPTIVE EQUIPMENT ASSISTANCE 
SEC. 302. Section 1902(b) is amended— 
(1) by inserting "(1)" before "The"; and 
(2) by adding at the end the following new paragraph: 
"(2) In the case of any veteran (other than a person eligible for 
assistance under paragraph (1) of this subsection) who is entitled to 
compensation for ankylosis of one or both knees, or one or both hips, 
the Administrator, under the terms and conditions set forth in 
subsections (a), (c), and (d) of section 1903 of this title and under 
regulations which the Administrator shall prescribe, shall provide 
such adaptive equipment to overcome the disability resulting from 
such ankylosis as (A) is necessary to meet the applicable standards of 
licensure established by the State of such veteran's residency or other 
proper licensing authority for the operation of such veteran's auto-
mobile or other conv^ance by such veteran, and (B) is determined to 
be necessary by the Chief Medical Director for the safe operation of 
such automobile or other conveyance by such veteran.". 
TECHNICAL AMENDMENTS 
38 use 1902, 
SEC. 303. Sections 1902 and 1903(b) are amended by striking out 
^^^^ 
"he" each place it appears and inserting in lieu thereof "the Adminis-
trator" and by striking out "his" each place it appears and inserting 
in lieu thereof "such person's". 
TITLE IV-LIFE INSURANCE PROGRAM AMENDMENTS 
INCREASES I N MAXIMUM AMOUNTS OF UFE INSURANCE 
38 use 767. 
SEC. 401. (a) Section 767 is amended— 
(1) in subsection (a)— 
(A) by striking out "$20,000" and inserting in lieu thereof 
"$35,000"; and 
(B) by inserting "$30,000, $25,000, $20,000" after "or (B) to 
be insured in the amount of"; 
(2) in subsection (c)— 
(A) by inserting "$30,000, $25,000, $20,000" after "or to be 
insured in the amount of; and 
(B) by inserting "$35,000, $30,000, $25,000" after "or in-
sured in the amount of; and 
(3) bj^ adding at the end of such section the following new 
subsection: 
"(d) Notwithstanding any other provision of this section, any 
member who on the effective date of this subsection is a member of 
the Retired Reserve of a uniformed service (or who upon application 
would be eligible for assignment to the Retired Reserve of a uni-
formed service) may obtain increased insurance coverage up to a 
maximum of $35,000 (in any amount divisible by $5,000) i
f
— 
"(1) the member— 
PUBLIC LAW 97-66—OCT. 17, 1981 
95 STAT. 1031 
"(A) is insured under this subchapter on the effective date 
of this subsection; or 
"(B) within one year after the effective date of this subsec-
tion, reinstates insurance under this subchapter that had 
lapsed for nonpayment of premiums; and 
"(2) the member submits a written application for the 
increased coverage to the office established pursuant to section 
766(b) of this title within one year after the effective date of this 
subsection.", 
(b) Section 777(a) is amended— 
38 use 777. 
(1) by striking out "or $20,000" in the first sentence and 
inserting in lieu thereof "$20,000, $25,000, $30,000, or $35,000"; 
(2) by striking out "$20,000" in the second sentence and 
inserting in lieu thereof "$35,000"; and 
(3) by striking out "$20,000" both places it appears in the 
fourth sentence and inserting in lieu thereof "$35,000". 
COLLECTION OF AMOUNTS FOR SERVICEMEN'S GROUP UFE INSURANCE 
PROGRAM 
SEC 402. Section 769 is amended by adding at the end the following 
^^^^°^-
new subsection: 
^^ use 769. 
"(f) The Secretary of Defense shall prescribe regulations for the 
administration of the functions of the Secretaries of the military 
departments under this section. Such regulations shall prescribe such 
procedures as the Secretary of Defense, after consultation with the 
Administrator, may consider necessary to ensure that such functions 
are carried out in a timely and complete manner and in accordance 
with the provisions of this section, mcluding specifically the provi-
sions of subsection (aX2) of this section relating to contributions from 
appropriations made for active duty pay.". 
BENEFICIARY'S RIGHT TO ELECT ONE-SUM PAYMENT 
SEC. 403. (a) Section 717(c) is amended— 
38 use 7i7. 
(1) by striking out "Unless" in the first sentence and inserting 
in lieu thereof "Except as provided in the second and third 
sentences of 
this subsection, unless"; and 
(2) by inserting the following new sentence after the second 
sentence: "In the case of insurance maturing after September 30, 
1981, and for which no option has been elected by the insured, the 
first beneficiary may elect to receive payment in one sum.". 
(b) Section 752(a) is amended by adding at the end the following 38 use 752. 
new sentence: "Notwithstanding any provision to the contrary in any 
insurance contract, the beneficiary may, in the case of insurance 
maturing after September 30,1981, and for which the insured has not 
exercised the right of election of the insured as provided in this 
subchapter, elect to receive payment of the insurance in one sum.". 
TITLE V—VETERANS' ADMINISTRATION HOUSING 
BENEFITS 
ESTABLISHMENT OF GRADUATED-PAYMENT PLANS IN VETERANS* 
ADMINISTRATION LOAN GUARANTY PROGRAM 
SEC. 501. (a) Section 1803(dX2) is amended— 
38 use 1803. 
(1) by inserting "(A)" after "(2)"; and 
(2) by adding at the end the following new subparagraphs: 
89-194 0—82 
67:QL3 
95 STAT. 1032 
PUBLIC LAW 97-66—OCT. 17, 1981 
Loan guarantee. 
"(B) The Administrator may guarantee loans with provisions for 
various rates of amortization corresponding to anticipated variations 
in family income. With respect to any loan guaranteed under this 
subparagraph— 
"(i) the initial principal amount of the loan may not exceed the 
reasonable value of the property as of the time the loan is made; 
and 
"(ii) the principal amount of the loan thereafter (including the 
amount of all interest to be deferred and added to principal) may 
not at any time be scheduled to exceed the projected value of the 
property. 
"(C) For the purposes of subparagraph (B) of this paragraph, the 
projected value of the property shall be calculated by the Administra-
tor by increasing the reasonable value of the property as of the time 
the loan is made at a rate not in excess of 2.5 percent per year, but in 
no event may the projected value of the property for the purposes of 
such subparagraph exceed 115 percent of such reasonable value. A 
loan made for a purpose other than the acquisition of a single-family 
dwelling unit may not be guaranteed under such subparagraph. . 
38 use 1828. 
(b) Section 1828 is amended— 
(1) by inserting "(1)" after "constitution or law"; and 
(2) by inserting "(2) restricting the manner of calculating such 
interest (including prohibition of the charging of interest on 
interest), or (3) requiring a minimum amortization of principal," 
after "lenders,". 
INCREASE IN MAXIMUM AMOUNTS OF SPECIALLY ADAPTED HOUSING 
ASSISTANCE 
oi f^n cnF 
SEC. 502. Section 802 is amended— 
38 use 802. 
^J jj^ subsection (a)— 
(A) by striking out "$30,000" and inserting in lieu thereof 
"$32,500"; 
(B) by striking out "him" each place it appears and 
inserting in lieu thereof "such veteran ; and 
(C) by striking out "his" in clause (3) and inserting in lieu 
thereof "such veteran's"; and 
(2) by striking out "section 804(b)(2)" in subsection (b) and 
inserting in lieu thereof "section 804(b)". 
EXTENSIONS OF M A X I M U M TERMS OF GUARANTEED LOANS FOR MOBILE-
HOME PURCHASES 
38 use 1819. 
SEC 503. Paragraph (1) of section 1819(d) is amended to read as 
follows: 
"(1) The maturity of any loan guaranteed under this section shall 
not be more than— 
"(A) fifteen years and thirty-two days, in the case of a loan for 
the purchase of a lot; 
"(B) twenty years and thirty-two days, in the case of a loan for 
the purchase of^ 
"(i) a single-wide mobile home; or 
"(ii) a single-wide mobile home and a lot; 
"(C) twenty-three years and thirty-two days, in the case of a 
loan for the purchase of a double-wide mobile home; or 
"(D) twenty-five years and thirty-two days, in the case of a loan 
for the purchase of a double-wide mobile home and a lot.". 
PUBLIC LAW 97-66—OCT. 17, 1981 
95 STAT. 1033 
TECHNICAL AMENDMENTS 
SEC. 504. Section 1826 is amended— 
(1) by striking out subsection (a); and 
(2) by striking o u t ' W . 
TITLE VI—MISCELLANEOUS PROVISIONS 
V E T E R A N S ' ADMINISTRATION ADMINISTRATIVE REORGANIZATIONS; 
REQUIRED STAFFING LEVEL AUTHORITIES 
SEC. 601. (a)(1) Section 210(b) is amended— 
(A) by inserting "(1)" after "(b)"; and 
(B) by adding at the end the following new paragraph: 
"(2)(A) The Administrator may not in any fiscal year implement an 
administrative reorgemization described in subparagraph (B) of this 
paragraph unless the Administrator first submits to the appropriate 
committees of the Congress a report containing a detailed plan and 
justification for the administrative reorganization. Any such report 
shall be submitted not later than the day on which the President, 
pursuant to section 201(a) of the Budget and Accounting Act, 1921 (31 
U.S.C. 11(a)), submits to the Congress the Budget for the fiscal year in 
which the administrative reorganization is to be implemented. No 
action to carry out such reorganization may be taken after the 
submission of such report until the first day of such fiscal year. 
"(B) Subparagraph (A) of this paragraph applies only to an admin-
istrative reorganization within the Veterans' Administration that 
involves a reduction during any fiscal year in the number of full-time 
equivalent employees with permanent duty stations at a covered 
office or facility— 
"(i) by 10 percent or more, or 
"(ii) by a percent which, when added to the percent reduction 
under this subsection in the number of such employees with 
permanent duty stations at such office or facility during the 
preceding fiscal year, is 15 percent or more. 
"(C) For the purposes of this paragraph— 
"(i) The term 'administrative reorganization' means a consoli-
dation, elimination, abolition, or redistribution of functions 
under the authority granted the Administrator under the second 
sentence of paragraph (1) of this subsection. 
"(ii) The term 'covered office or facility' means a Veterans' 
Administration office or facility that is the permanent duty 
station for 25 or more employees or that is a free-standing 
outpatient clinic". 
(2) Paragraph (2) of section 210(b) of title 38, United States Code, as 
added by paragraph (1), does not apply to an administrative reorgani-
zation (as defined in such paragraph (2)) that is fully accomplished 
before the date of the enactment of this Act. 
(b) Section 5010(a) is amended— 
(1) in paragraph (4)— 
(A) by inserting "for any fiscal year (or any part of a fiscal 
year)" in subparagraph (A) after "for the Veterans' Adminis-
tration"; and 
(B) by inserting "(or part of a fiscal year)" after "fiscal 
year" the first place it appears in subparagraph (B) and both 
places it appears in subparagraph (D); and 
(2) by adding at the end the following new paragraph: 
38 u s e 1826. 
38 u s e 210. 
Report to 
congressional 
committees. 
"Administrative 
reorganization.'' 
"Covered office 
or facility." 
38 u s e 210 note. 
38 u s e 5010. 
95 STAT. 1034 
PUBLIC LAW 97-66—OCT. 17, 1981 
"(5) Notwithstanding any other provision of this title or of any 
other law, funds appropriated for the Veterans' Administration 
under the appropriation accounts for medical care, medical and 
prosthetic research, and medical administration and miscellaneous 
operating expenses may not be used for, and no employee compen-
sated from such funds may carry out any activity in connection 
with, the conduct of any study comparing the cost of the provision 
by private contractors with the cost of the provision by the Veter-
ans' Administration of commercial or industrial products and 
services for the Department of Medicine and Surgeiy unless such 
funds have been specifically appropriated for that purpose.". 
CONTINUED PAYMENT OF PENSION TO CERTAIN HOSPITALIZED VETERANS 
UNDERGOING A PRESCRIBED PROGRAM OF REHABILITATION 
38 use 3203. 
SEC. 602. Paragraph (1) of section 3203(a) is amended— 
(1) by striking out "Where" in subparagraph (B) and inserting 
in lieu thereof "Except as provided in subparagraph (D) of this 
paragraph, where"; and 
(2) by adding at the end the following new subparagraph: 
"(D) In the case of a veteran being furnished hospital or nursing 
home care by the Veterans' Administration and with respect to 
whom subparagraph (B) of this paragraph requires a reduction in 
pension, such reduction shall not be made for a period of up to three 
additional calendar months after the last day of the third month 
referred to in such subparagraph if the Administrator determines 
that the primary purpose for the furnishing of such care during such 
additional period is for the Veterans' Administration to provide such 
veteran with a prescribed program of rehabilitation services, under 
38 use 601 et 
chapter 17 of this title, designed to restore such veteran's ability to 
*
^
9 
function within such veteran's family and community. If the Admin-
istrator determines that it is necessary, after such period, for the 
veteran to continue such program of rehabilitation services in order 
to achieve the purposes of such program and that the primary 
purpose of furnishing hospital or nursing home care to the veteran 
continues to be the provision of such program to the veteran, the 
reduction in pension required by subparagraph (B) of this paragraph 
shall not be made for the number of calendar months that the 
Administrator determines is necessary for the veteran to achieve the 
purposes of such program.". 
HEADSTONES, MARKERS, AND MEMORIAL AREAS 
38 use 906. 
SEC 603. (a) Subsection (b) of section 906 is amended to read as 
follows: 
"(b) The Administrator shall furnish, when requested, an appropri-
ate memorial headstone or marker for the purpose of commemorat-
ing any veteran— 
"(1) whose remains have not been recovered or identified, 
"(2) whose remains were buried at sea, whether by the veter-
an's own choice or otherwise, 
"(3) whose remains were donated to science, or 
"(4) whose remains were cremated and the ashes scattered 
without interment of any portion of the ashes, 
for placement by the applicant in a national cemetery area reserved 
for such purpose under the provisions of section 1003 of this title or in 
a State, local, or private cemetery.". 
38 use 1003. 
O
b
) Subsection (a) of section 1003 is amended to read as follows: 
PUBLIC LAW 97-66—OCT. 17, 1981 
95 STAT. 1035 
"(a) The Administrator shall set aside, when available, suitable 
areas in national cemeteries to honor the memory of members of the 
Armed Forces and veterans— 
"(1) who are missing in action; 
"(2) whose remains have not been recovered or identified; 
"(3) whose remains were buried at sea, whether by the mem-
ber's or veteran's own choice or otherwise; 
"(4) whose remains were donated to science; or 
"(5) whose remains were cremated and the ashes scattered 
without interment of 
any portion of 
the ashes.". 
MINIMUM ACTIVE-DUTY SERVICE REQUIREMENT FOR BENEFITS 
SEC. 604. (a)(1) Chapter 53 is amended by inserting after section 
3103 the following new section: 
"§ 3103A. Minimum active-duty service requirement 
38 use 3103A. 
"(a) Notwithstanding any other provision of law, any requirements 
for eligibility for or entitlement to any benefit under this title or any 
other law administered by the Veterans' Administration that are 
based on the length of active duty served by a person who initially 
enters such service after September 7, 1980, shall be exclusively as 
prescribed in this title. 
"(b)(1) Except as provided in paragraph (3) of this subsection, a 
person described in paragraph (2) of tms subsection who is discharged 
or released from a period of active duty before completing the shorter 
o
f
— 
"(A) 24 months of continuous active duty, or 
"(B) the full period for which such person was called or ordered 
to active duty, 
is not eligible by reason of such period of active duty for any benefit 
under this title or any other law administered by the Veterans' 
Administration. 
"(2) Paragraph (1) of this subsection appUes— 
"(A) to any person who originally enlists in a regular compo-
nent of 
the Armed Forces after September 7,1980; and 
"(B) to any other person who enters on active duty on or after 
the date of the enactment of the Veterans' Disability Compensa-
tion, Housing, and Memorial Benefits Amendments of 1981 and ^"^^' P 1
^
2
6
. 
has not previously completed a continuous period of active duty 
of at least 24 months or been discharged or released from active 
duty under section 1171 of title 10. 
"(3) Paragraph (1) of 
this subsection does not apply— 
"(A) to a person who is discharged or released from active duty 
under section 1171 or 1173 of title 10; 
"(B) to a person who is discharged or released from active duty 
for a disability incurred or aggravated in line of duty; 
"(C) to a person who has a disability that the Administrator 
has determined to be compensable under chapter 11 of this title; 38 use 30i et 
"(D) to the provision of a benefit for or in connection with a ^^i-
service-connected disability, condition, or death; or 
"(E) to benefits under chapter 19 of this title. 
38 use 70i et 
"(cXl) Except as provided in paragraph (2) of this subsection, no *
^
^ 
dependent or survivor of a person as to whom subsection (b) of this 
section requires the denial of benefits shall, by reason of such 
person's period of active duty, be provided with any benefit under this 
title or any other law administered by the Veterans' Administration. 
95 STAT. 1036 
PUBLIC LAW 97-66—OCT. 17, 1981 
38 u s e 701 ef 
seq., 1801 et seq. 
"Benefit." 
38 u s e 1601 et 
seq. 
38 u s e 3103A 
note. 
38 u s e 1801 et 
seq. 
"(2) Paragraph (1) of this subsection does not apply to benefits 
under chapters 19 and 37 of this title. 
"(d) For the purposes of this section, the term 'benefit' includes a 
right or privilege, but does not include a refund of a participant's 
contributions to the educational benefits program provided by chap-
ter 32 of this title.". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3103 the 
following: 
"3103A. Minimum active-duty service requirement.". 
(b) Section 3103A of title 38, United States Code, as added by 
subsection (a), shall not apply with respect to the receipt by any 
person of any benefit provided by or pursuant to law before the date 
of the enactment of this Act. Notwithstanding such section, a person 
who before such date has received a certificate of eligibility from the 
Administrator of Veterans' Affairs for benefits under chapter 37 of 
title 38, United States Code, is eligible for such benefits after such 
date. 
38 u s e 1712. 
38 u s e 1712 
note. 
DELIMITING 
DATES FOR SURVIVING 
SPOUSES OF CERTAIN SERVICE-
CONNECTED DISABLED VETERANS 
SEC. 605. (a) Section 1712(b)(1) is amended— 
(1) by inserting "of the following" after "whichever"; 
(2) by striking out "the date" in clause (A) and inserting in lieu 
thereof "The date"; 
(3) by striking out the comma and "or" at the end of clause (A) 
and inserting in lieu thereof a period; and 
(4) by striking out clause (B) and inserting in lieu thereof the 
following: 
"(B) The date of death of the spouse from whom eligibility is 
derived who dies while a total disability evaluated as permanent 
in nature was in existence. 
"(C) The date on which the Administrator determines that the 
spouse from whom eligibility is derived died of a service-con-
nected disability.", 
(b) Subsection (f) of section 2 of Public Law 90-631 (82 Stat. 1331) is 
amended to read as follows: 
"(f)(1) Except as provided in paragraph (2) of this subsection, in the 
case of any person who is an eligible person by reason of subpara-
graph (B) or (D) of section 1701(a)(1) of title 38, United States Code, if 
the date of death or the date of the determination of service-
connected total disability permanent in nature of the person from 
whom eligibility is derived occurred before December 1, 1968, the 
10-year delimiting period referred to in section 1712(b)(1) of such 
title shall run from such date. 
"(2) If the death of the person from whom such eligibility is derived 
occurred before December 1, 1968, and the date on which the 
Administrator of Veterans' Affairs determines that such person died 
of a service-connected disability is later than December 1, 1968, the 
delimiting period referred to in section 1712(b)(1) of such title 
shall run from the date on which the Administrator makes such 
determination.". 
PUBLIC LAW 97-66—OCT. 17, 1981 
95 STAT. 1037 
WAIVER OF PRO RATA REFUND REQUIREMENT IN THE CASE OF CERTAIN 
INSTITUTIONS 
SEC. 606. Section 1776 is amended by adding at the end the 
following new subsection: 
"(d) The Administrator may waive, in whole or in part, the 
requirements of subsection (cX13) of this section in the case of an 
educational institution which— 
"(1) is a college, university, or similar institution offering 
postsecondary level academic instruction that leads to an asso-
ciate or higher degree, 
"(2) is operated by an agency of a State or of a unit of local 
government, 
"(3) is located within such State or, in the case of an institution 
operated by an agency of a unit of local government, within the 
boundaries of the area over which such unit has taxing jurisdic-
tion, and 
"(4) is a candidate for accreditation by a regional accrediting 
association, 
if the Administrator determines, pursuant to regulations which the 
Administrator shall prescribe, that such requirements would work 
an undue administrative hardship because the total amount of 
tuition, fees, and other charges at such institution is nominal.". 
38 u s e 1776. 
NAMING OF VETERANS ADMINISTRATION MEDICAL CENTERS 
SEC. 607. (a) The Veterans' Administration Medical Center in Reno, 
Nevada, shall after the date of the enactment of this Act be known 
and designated as the "loannis A. Lougaris Veterans' Administration 
Medical Center". Any reference to such medical center in any law, 
regulation, map, document, record, or other paper of the United 
States shall after such date be deemed to be a reference to the loannis 
A. Lougaris Veterans' Administration Medical Center. 
(b) The Veterans' Administration Medical Center in Clarksburg, 
West Virginia, shall after the date of the enactment of this Act be 
known and designated as the "Louis A. Johnson Veterans' Adminis-
tration Medical Center". Any reference to such medical center in any 
law, regulation, map, document, record, or other paper of the United 
States shall after such date be deemed to be a reference to the Louis 
A. Johnson Veterans' Administration Medical Center. 
loannis A. 
Lougaris. 
Louis A. 
Johnson. 
TITLE Vn—EFFECTIVE DATES 
SEC. 701. (a) The amendments made by titles I, II, and m shall take 
effect as of 
October 1,1981. 
(bXD Except as otherwise provided in this subsection, the amend-
ments made by titles IV, V, and VI shall take effect on the date of the 
enactment of this Act. 
(2) The amendments made by section 401 shall take effect on 
December 1,1981. 
(3) The Eunendments made by section 504 shall take effect as of 
October 17,1980. 
(4) The amendments made by section 601(bXl) shall take effect as of 
October 1,1981. 
(5) The amendments made by section 602 shall take effect on the 
date of the enactment of this Act and shall apply with respect to 
veterans admitted to a Veterans' Administration hospital or nursing 
home on or after such date. 
Ante, pp. 
1026, 
1028, 1030. 
38 
use 
314 
note. 
Ante, pp. 1030, 
1031, 
1033. 
95 STAT. 1038 
PUBLIC LAW 97-66—OCT. 17, 1981 
(6) The amendments made by section 603 shall apply with respect 
to veterans dying before, on, or after the date of the enactment of this 
Act. 
Approved October 17, 1981. 
LEGISLATIVE HISTORY—S. 917 (H.R. 3995): 
HOUSE REPORT No. 97-179 accompanying H.R. 3995 (Comm. on Veterans' Affairs). 
SENATE REPORT No. 97-153 (Comm. on Veterans' Affairs). 
CONGRESSIONAL RECORD, Vol. 127 (1981): 
July 24, considered and passed Senate. 
Sept. 21, H.R. 3995 considered and passed House; proceedings vacated and S. 
917, amended, passed in lieu. 
Oct. 1, Senate concurred in House amendments with amendments. 
Oct. 2, House concurred in Senate amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 17, No. 43 (1981): 
Oct. 17, Presidential statement.