HR 5892

110th CONGRESS
2d Session

H. R. 5892

To amend title 38, United States Code, to direct the Secretary of Veterans Affairs to modernize the disability benefits claims processing system of the Department of Veterans Affairs to ensure the accurate and timely delivery of compensation to veterans and their families and survivors, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

April 24, 2008

Mr. HALL of New York introduced the following bill; which was referred to the Committee on Veterans' Affairs

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A BILL

To amend title 38, United States Code, to direct the Secretary of Veterans Affairs to modernize the disability benefits claims processing system of the Department of Veterans Affairs to ensure the accurate and timely delivery of compensation to veterans and their families and survivors, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Veterans Disability Benefits Claims Modernization Act of 2008'.

(b) Table of Contents- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

TITLE I--MATTERS RELATING TO MODERNIZING THE DISABILITY COMPENSATION SYSTEM OF DEPARTMENT OF VETERANS AFFAIRS

Sec. 101. Clarification of meaning of `combat with the enemy' for purposes of service-connection of disabilities.

Sec. 102. Study on readjustment of schedule for rating disabilities.

Sec. 103. Study on employee work credit system of Veterans Benefits Administration.

Sec. 104. Study on work management system.

Sec. 105. Certification and training of employees of Veterans Benefits Administration responsible for processing claims.

Sec. 106. Annual assessment of quality assurance program.

Sec. 107. Expedited treatment of fully developed claims and requirement for checklist to be provided to individuals submitting incomplete claims.

Sec. 108. Study and report on employing medical professionals to assist employees of Veterans Benefits Administration.

Sec. 109. Assignment of partial disability ratings to qualifying veterans.

Sec. 110. Review and enhancement of use of information technology at Veterans Benefits Administration.

Sec. 111. Treatment of claims upon death of claimant.

TITLE II--MATTERS RELATING TO UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

Sec. 201. Annual reports on workload of United States Court of Appeals for Veterans Claims.

Sec. 202. Modification of jurisdiction and finality of decisions of United States Court of Appeals for Veterans Claims.

SEC. 2. FINDINGS.

Congress makes the following findings:

(1) At the end of fiscal year 2007, there were nearly 24,000,000 veterans in America.

(2) According to the latest Annual Report from the Veterans Benefits Administration, there were 3,582,255 veterans and survivors receiving compensation and pension benefits under laws administered by the Secretary of Veterans Affairs at the end of fiscal year 2006.

(3) The number of veterans and survivors at the end of fiscal year 2006 included 2,725,824 veterans receiving service-connected disability benefits, 325,939 survivors receiving service-connected death benefits, 329,856 veterans receiving non-service-connected disability benefits, and 200,636 survivors receiving non-service-connected death benefits.

(4) During fiscal year 2006, almost 250,000 beneficiaries began receiving benefits with 162,805 of these being veterans whose compensation claims were granted.

(5) Since October 7, 2001, the number of claims for new or increased benefits has risen sharply, exceeding 838,000 in 2007.

(6) The Department of Veterans Affairs projects that the number of claims will surpass 1,000,000 by the end of fiscal year 2008.

(7) The number of disability compensation claims pending before the Department stands at nearly 650,000, as of the date of the enactment of this Act, about a quarter of which have been backlogged for over six months.

(8) Processing times have increased from an average of 177 days in 2006 to 183 days in 2007.

(9) The paper-based, labor-intensive process employed by the Department leaves many disabled veterans and survivors waiting months or years to receive the benefits they have earned.

(10) The most prevalent disabilities among veterans that are service-connected are auditory, with almost 840,000 veterans receiving compensation for such a disability, followed by musculoskeletal disabilities and arthritis.

(11) Post-traumatic stress disorder is the sixth most common disability, with more than 269,399 service-connected veterans.

(12) In 2006, the Veterans Health Administration treated 345,713 veterans with post-traumatic stress disorder, which was an increase of 27,099 over 2005.

(13) By January 2008, of the 1,600,000 veterans who served in the Armed Forces after October 7, 2001, the Veterans Health Administration had treated 59,838 for post-traumatic stress disorder.

(14) Disabilities are evaluated in accordance with the Department of Veterans Affairs Schedule for Rating Disabilities (referred to in this section as the `VASRD') under title 38, United States Code of Federal Regulations, part 4.

(15) This schedule was originally created in 1917 and was last comprehensively revised in 1945.

(16) The VASRD contains many outdated and archaic criteria and lacks more commonly accepted medical practices and procedures.

(17) Studies conducted by the Institute of Medicine found it to be an inadequate instrument for compensating disabilities for the average impairments of earning capacity, especially in areas of mental health, unemployability, and for younger and severely injured veterans, and recommended it be revised using more modern medical concepts.

(18) The Department of Veterans Affairs must modernize the claims processing system of the Veterans Benefits Administration to make it a first-class, veteran-centered system that uses 21st century technologies and paradigms and reflects the dignity and sacrifices made by disabled veterans, their families, and survivors.

TITLE I--MATTERS RELATING TO MODERNIZING THE DISABILITY COMPENSATION SYSTEM OF DEPARTMENT OF VETERANS AFFAIRS

SEC. 101. CLARIFICATION OF MEANING OF `COMBAT WITH THE ENEMY' FOR PURPOSES OF SERVICE-CONNECTION OF DISABILITIES.

(a) Clarification- Section 1154(b) of title 38, United States Code, is amended--

(1) by striking `In the case' and inserting `(1) In the case'; and

(2) by adding at the end the following new paragraph:

`(2) For the purposes of this subsection, the term `combat with the enemy' includes service on active duty--

`(A) in a theater of combat operations (as determined by the Secretary in consultation with the Secretary of Defense) during a period of war; or

`(B) in combat against a hostile force during a period of hostilities.'.

(b) Effective Date- Paragraph (2) of subsection (b) of section 1154 of title 38, United States Code, as added by subsection (a), shall apply with respect to a claim for disability compensation under chapter 11 of such title pending on or after the date of the enactment of this Act.

SEC. 102. STUDY ON READJUSTMENT OF SCHEDULE FOR RATING DISABILITIES.

(a) Study on Adjustment of Schedule-

(1) STUDY REQUIRED- The Secretary of Veterans Affairs shall conduct a study on adjusting the schedule for rating disabilities adopted and applied by the Secretary under section 1155 of title 38, United States Code, so as to base the schedule on standards, practices, and codes in common use by the medical, mental health, and disability professions that are current as of the date of the enactment of this Act.

(2) CONTENTS OF STUDY- In conducting the study under this subsection, the Secretary shall--

(A) determine how the schedule could be adjusted to take into account the loss of quality of life and loss of earnings that result from specific disabilities;

(B) examine the nature of the disabilities for which disability compensation is payable under laws other than laws administered by the Secretary;

(C) examine whether disparities exist between the rating of physical and mental disabilities, especially with respect to how the severity of mental disabilities should be adjudicated to ensure parity with physical disabilities whereby a veteran can be rated totally disabled while maintaining some level of employment;

(D) measure the effect of disabilities on the psychological states, physical integrity, and social adaptability of veterans with such disabilities; and

(E) examine the effect of a veteran's injury or combination of injuries on--

(i) the average loss of the veteran's earnings capacity, including the veteran's inability to work in certain occupations;

(ii) the veteran's quality of life, including activities of independent living, recreational and community activities, and personal relationships, including the inability to participate in favorite activities, social problems related to disfigurement or cognitive difficulties, and the need to spend increased amounts of time performing activities of daily living; and

(iii) the extent to which benefits for veterans may be used to encourage veterans to seek and undergo vocational rehabilitation.

(3) CONSULTATION- In conducting the study under this subsection, the Secretary shall consult with appropriate public and private entities, agencies, and veterans service organizations, and shall employ consultants.

(4) DEADLINE FOR COMPLETION- The Secretary shall complete the study required under this subsection by not later than 180 days after the date of the enactment of this Act.

(5) REPORT TO CONGRESS- Not later than 60 days after completing the study required under this subsection, the Secretary shall submit to Congress a report on the study. The report shall include--

(A) the results of the study on quality of life and the payment of compensation for service-connected disabilities for which the Secretary entered into a contract on January 28, 2008;

(B) the Secretary's findings and conclusions with respect to adjusting the schedule for rating disabilities adopted and applied by the Secretary under section 1155 of title 38, United States Code, to account for the loss of quality of life and loss of earnings that result from specific disabilities;

(C) the Secretary's findings and conclusions with respect to--

(i) the report of the Veterans' Disability Benefits Commission;

(ii) the report of the President's Commission on the Care for America's Returning Wounded Warriors;

(iii) the report of the Institute of Medicine entitled `A 21st Century System for Evaluating Veterans for Disability Benefits'; and

(iv) any other independent or advisory commission report on matters relating to such schedule that the Secretary determines is appropriate;

(D) the Secretary's recommendations with respect to the appropriate disabilities for inclusion in the schedule;

(E) the Secretary's recommendations with respect to the amount of compensation payable to veterans for the loss of quality of life and the basis for such recommendations;

(F) the Secretary's recommendations with respect to the amount of compensation payable to veterans for average loss of earnings capacity and the appropriate standards for determining whether a disability has caused a veteran to incur a loss of earnings capacity;

(G) the Secretary's assessment of the effect of the treatment of mental disabilities under the schedule for rating disabilities, as in effect on the date of the enactment of this Act; and

(H) the Secretary's determination with respect to whether the regulations prescribed pursuant to section 1154 of title 38, United States Code, are consistent with providing, to the maximum extent possible, the benefit of the doubt to veterans covered by that section in the absence of official military records pertaining to the service-connection of a veteran's disability, and in particular, of post-traumatic stress disorder, when a determination of service-connection would be consistent with the duties, conditions, and hardships of service in the Armed Forces.

(b) Submission of Plan-

(1) PLAN REQUIRED- Not later than 120 days after the date on which the Secretary submits the report required under subsection (a)(5), the Secretary shall submit to Congress a plan to readjust the schedule for rating disabilities adopted and applied by the Secretary under section 1155 of title 38, United States Code. In developing the plan required under this subsection, the Secretary shall consider the report submitted under subsection (a)(5) and shall provide for the readjustment of such schedule for rating disabilities to--

(A) align the schedule with medical concepts considered best practices as of the date of the enactment of this Act, including those provided in the Current Procedural Terminology Manual, International Classification of Diseases, the Diagnostic and Statistical Manual of Mental Disorders, and applicable American Medical Association Guides;

(B) bridge the gap between the schedule, as in effect on the date of the enactment of this Act, and medical understandings, as of such date, of injuries and diseases and the affects of such injuries and diseases on the ability of a person suffering from them to function;

(C) prioritize such readjustment with respect to post-traumatic stress disorder, other mental disorders, neurological disorders, traumatic brain injury, orthopedic disabilities, and digestive disabilities;

(D) ensure that the schedule is automated in accordance with the review and comprehensive plan of the Secretary under section 110 of this Act; and

(E) ensure that a transition plan is provided to ease the transition from the schedule for rating disabilities, as in effect on the date of the enactment of this Act, to the implementation of the schedule for rating disabilities, as proposed to be readjusted by the plan under this subsection.

(2) TIMELINE FOR READJUSTMENT- The Secretary shall include in the plan submitted under the subsection a proposed timeline for when the Secretary intends to readjust the schedule. Such proposed timeline may not exceed three years.

(c) Authorization of Appropriations- There are authorized to be appropriated such sums as may be necessary to carry out subsections (a) and (b).

(d) Advisory Committee on Disability Compensation-

(1) ESTABLISHMENT- Subchapter III of chapter 5 of title 38, United States Code, is amended by adding at the end the following new section:

`Sec. 546. Advisory Committee on Disability Compensation

`(a) Establishment- (1) There is in the Department the Advisory Committee on Disability Compensation (hereinafter in this section referred to as the `Committee').

`(2) The Committee shall consist of not more than 18 members appointed by the Secretary from among individuals who--

`(A) have demonstrated significant civic or professional achievement; and

`(B) have experience with the provision of disability compensation by the Department or are leading medical or scientific experts in relevant fields.

`(3) The Secretary shall seek to ensure that members appointed to the Committee include individuals from a wide variety of geographic areas and ethnic backgrounds, individuals from veterans service organizations, individuals with combat experience, and women.

`(4) The Secretary shall determine the terms of service and pay and allowances of the members of the Committee, except that a term of service may not exceed two years. The Secretary may reappoint any member for additional terms of service.

`(b) Responsibilities of Committee- (1) The Secretary shall, on a regular basis, consult with and seek the advice of the Committee with respect to the maintenance and periodic readjustment of the schedule for rating disabilities under section 1155 of this title.

`(2)(A) In providing advice to the Secretary under this subsection, the Committee shall--

`(i) assemble and review relevant information relating to the needs of veterans with disabilities;

`(ii) provide information relating to the nature and character of disabilities arising from service in the Armed Forces;

`(iii) provide an on-going assessment of the effectiveness of the schedule for rating disabilities; and

`(iv) provide on-going advice on the most appropriate means of responding to the needs of veterans relating to disability compensation in the future.

`(B) In carrying out its duties under subparagraph (A), the Committee shall take into special account the needs of veterans who have served in a theater of combat operations.

`(c) Annual Report- (1) Not later than March 31 of each year, the Committee shall submit to the Secretary a report on the programs and activities of the Department that relate to the payment of disability compensation. Each such report shall include--

`(A) an assessment of the needs of veterans with respect to disability compensation;

`(B) a review of the programs and activities of the Department designed to meet such needs; and

`(C) such recommendations (including recommendations for administrative and legislative action) as the Committee considers appropriate.

`(2) Not later than 90 days after the receipt of a report under paragraph (1), the Secretary shall transmit to the Committees on Veterans' Affairs of the Senate and House of Representatives a copy of the report, together with any comments and recommendations concerning the report that the Secretary considers appropriate.

`(3) The Committee may also submit to the Secretary such other reports and recommendations as the Committee considers appropriate.

`(4) The Secretary shall submit with each annual report submitted to the Congress pursuant to section 529 of this title a summary of all reports and recommendations of the Committee submitted to the Secretary since the previous annual report of the Secretary submitted pursuant to that section.

`(d) Applicability of Federal Advisory Committee Act- (1) Except as provided in paragraph (2), the provisions of the Federal Advisory Committee Act (5 U.S.C. App.) shall apply to the activities of the Committee under this section.

`(2) Section 14 of such Act shall not apply to the Committee.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end of the items relating to subchapter III the following new item:

`546. Advisory Committee on Disability Compensation.'.

SEC. 103. STUDY ON EMPLOYEE WORK CREDIT SYSTEM OF VETERANS BENEFITS ADMINISTRATION.

(a) Study Required- The Secretary of Veterans Affairs shall conduct a study on the employee work credit system of the Veterans Benefits Administration of the Department of Veterans Affairs, which is used to measure the work production of employees of the Veterans Benefits Administration.

(b) Contents of Study- In carrying out the study under subsection (a), the Secretary shall consider the advisability of implementing--

(1) performance standards and accountability measures to ensure that--

(A) claims for benefits under the laws administered by the Secretary are processed in an objective, accurate, consistent, and efficient manner; and

(B) final decisions with respect to such claims are consistent and issued within the average amount of time required to process a claim, as identified by the Secretary in the most recent annual report submitted by the Secretary under section 7734 of title 38, United States Code;

(2) guidelines and procedures for the prompt processing of such claims that are ready to rate upon submission;

(3) guidelines and procedures for the processing of such claims submitted by severely injured and very severely injured veterans, as determined by the Secretary; and

(4) requirements for assessments of claims processing at each regional office for the purpose of producing lessons learned and best practices.

(c) Report to Congress- Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to Congress a report on the study conducted under this section and the progress of the Secretary in implementing the new system for evaluating employees of the Veterans Benefits Administration required under subsection (d).

(d) Evaluation of Veterans Benefits Administration Employees-

(1) NEW SYSTEM REQUIRED- By not later than 180 days after the date on which the Secretary of Veterans Affairs submits to Congress the report required under subsection (d), the Secretary shall establish a new system for evaluating the work production of employees of the Veterans Benefits Administration. Such system shall--

(A) be based on the findings of the study conducted by the Secretary under this section;

(B) focus on evaluating the accuracy and quality of ratings decisions made by such employees; and

(C) not resemble or be based on any concept on which the system in effect as of the date of the enactment of this Act is based.

(2) SUSPENSION OF AWARD OF WORK CREDITS- If the Secretary of Veterans Affairs does not implement the new system for evaluating work production as required under paragraph (1), the Secretary may not award a work credit to any employee of the Veterans Benefits Administration until the Secretary has implemented such system.

SEC. 104. STUDY ON WORK MANAGEMENT SYSTEM.

(a) In General- The Secretary of Veterans Affairs shall conduct a study on the work management system of the Veterans Benefits Administration of the Department of Veterans Affairs, which is designed to improve accountability, quality, and accuracy, and reduce the time for processing claims for benefits under laws administered by the Secretary that are adjudicated by the Veterans Benefits Administration.

(b) Contents of Study- In conducting the study required under subsection (a), the Secretary shall consider--

(1) accountability for claims adjudication outcomes;

(2) the quality of claims adjudicated;

(3) a simplified process to adjudicate claims;

(4) the maximum use of information technology applications;

(5) rules-based applications and tools for processing and adjudicating claims efficiently and effectively; and

(6) methods of reducing the time required to obtain information from outside sources.

(c) Report to Congress- Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to Congress a report on the study conducted under this section.

SEC. 105. CERTIFICATION AND TRAINING OF EMPLOYEES OF VETERANS BENEFITS ADMINISTRATION RESPONSIBLE FOR PROCESSING CLAIMS.

(a) Employee Certification Required-

(1) IN GENERAL- Subchapter II of chapter 77 of title 38, United States Code, is amended by adding at the end the following new section:

`Sec. 7735. Employee certification

`(a) Development of Certification Examination- The Secretary shall develop a certification examination for appropriate employees and managers of the Veterans Benefits Administration who are responsible for processing claims for benefits under the laws administered by the Secretary. The Secretary shall develop such examination in consultation with examination development experts, interested stakeholders, including such appropriate employees, employee representatives, and managers, and appropriate public and private entities, including veterans service organizations and other service organizations.

`(b) Employee and Manager Requirement- The Secretary shall require appropriate employees and managers of the Veterans Benefits Administration who are responsible for processing claims for benefits under the laws administered by the Secretary to take a certification examination.

`(c) Limitation- The Secretary may not satisfy any requirement of this section through the use of any certification examination or program that exists as of the date of the enactment of the Veterans Disability Benefits Claims Modernization Act of 2008.'.

(2) DEADLINES FOR IMPLEMENTATION- The Secretary of Veterans Affairs shall--

(A) develop the certification examination required to be developed under section 7735 of title 38, United States Code, as added by subsection (a), by not later than one year after the date of the enactment of this Act; and

(B) implement procedures for administering the certification of employees under such section and begin administering the certification examination required under such section by not later than 90 days after the date on which the development of such certification examination is complete.

(3) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is further amended by adding at the end of the items relating to subchapter II the following new item:

`7735. Employee certification.'.

(b) Evaluation of Training-

(1) EVALUATION REQUIRED- The Secretary of Veterans Affairs shall enter into a contract with a private entity with experience evaluating training processes, continuing education needs, and centralized training requirements, under which that entity shall--

(A) conduct an evaluation of the items required to be included in the annual report of the Secretary under section 7734 of title 38, United States Code, that were included in the last such report submitted before the date of the enactment of this Act, that relate to the training and performance assessment programs of the Department of Veterans Affairs for employees of the Veterans Benefits Administration who are responsible for matters relating to compensation or pension benefits under the laws administered by the Secretary; and

(B) not later than 180 days after the date of the enactment of this Act, submit to the Secretary the results of such evaluation.

(2) SUBMISSION OF RESULTS TO CONGRESS- The Secretary shall include the results of the evaluation required under paragraph (1) with the first annual report required to be submitted to Congress under section 529 of title 38, United States Code, submitted after the date on which the Secretary receives such results.

(3) REPORT- Not later than 180 days after the date on which the Secretary submits the report referred to in paragraph (2), the Secretary shall submit to Congress a report on any actions the Secretary has taken or plans to take in response to the results of the evaluation required under paragraph (1).

SEC. 106. ANNUAL ASSESSMENT OF QUALITY ASSURANCE PROGRAM.

(a) Annual Assessment Required- Section 7731 of title 38, United States Code, is amended by adding at the end the following new subsection:

`(c)(1) The Secretary shall enter into a contract with an independent third-party entity for the conduct of an annual assessment of the quality assurance program under this section. Each such assessment shall--

`(A) evaluate a statistically valid sample of employees of the Veterans Benefits Administration and a statistically valid sample of the work product of such employees to assess the quality and accuracy of such work product;

`(B) measure the performance of each regional office of the Veterans Benefits Administration;

`(C) measure the accuracy of the disability ratings assigned under the schedule for rating disabilities under section 1155 of this title;

`(D) compare disability ratings and evaluate consistency between regional offices;

`(E) assess the performance of employees and managers of the Veterans Benefits Administration; and

`(F) produce automated categorizable data to help identify trends.

`(2) The Secretary shall use information gathered through the annual assessments required under this section in developing the employee certification required under section 7735 of this title.

`(3) Nothing in this subsection shall require the Secretary to replace the quality assurance program under this section, as in effect on the date of the enactment of the Veterans Disability Benefits Claims Modernization Act of 2008.'.

(b) Report to Congress- Section 7734 of such title is amended--

(1) in paragraph (2), by striking `and' at the end;

(2) by redesignating paragraph (3) as paragraph (4); and

(3) by inserting after paragraph (2) the following new paragraph (3):

`(3) the results and findings of the most recent annual assessment conducted under section 7731(c) of this title; and'.

SEC. 107. EXPEDITED TREATMENT OF FULLY DEVELOPED CLAIMS AND REQUIREMENT FOR CHECKLIST TO BE PROVIDED TO INDIVIDUALS SUBMITTING INCOMPLETE CLAIMS.

(a) Expedited Treatment of Fully Developed Claims-

(1) IN GENERAL- Subchapter I of chapter 51 of title 38, United States Code, is amended by adding at the end the following new section:

`Sec. 5109C. Expedited treatment of fully developed claims

`(a) Expedited Treatment Required- The Secretary shall take such actions as may be necessary to provide for the expeditious treatment by the appropriate regional office of the Veterans Benefits Administration of any fully developed claim to ensure that any such claim is adjudicated not later than 90 days after the date on which the claim is submitted.

`(b) Notice of Required Information and Evidence- Nothing in this section shall affect the responsibility of the Secretary to provide notice under section 5103 to a claimant and a claimant's representative of required information and evidence that is necessary to substantiate a fully developed claim.

`(c) Fully Developed Claim Defined- For purposes of this section, the term `fully developed claim' means a claim for a benefit under a law administered by the Secretary--

`(1) for which the claimant--

`(A) received assistance from a veterans service officer, a State or county veterans service officer, an agent, or an attorney; or

`(B) submits along with the claim an appropriate indication that the claimant does not intend to submit any additional information in support of the claim and does not require additional assistance with respect to the claim; and

`(2) for which the claimant submits a certification in writing that is signed by the claimant stating that at the time of signature, no additional information is available or needs to be submitted in order for the claim to be adjudicated.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end of the items relating to subchapter I the following new item:

`5109C. Expedited treatment of fully developed claims.'.

(3) DEADLINES FOR IMPLEMENTATION- By not later than 180 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall establish a process for expediting claims under section 5109C of title 38, United States Code, as added by paragraph (1).

(b) Provision of Checklist to Individuals Submitting Incomplete Claims-

(1) CHECKLIST- Section 5103 of title 38, United States Code, is amended--

(A) by redesignating subsection (b) as subsection (c); and

(B) by inserting after subsection (a) the following new subsection (b):

`(b) Provision of Checklist- In providing notice of required information and evidence to a claimant and a claimant's representative, if any, under subsection (a), the Secretary shall provide to the claimant and any such representative a checklist that includes a detailed description of information or evidence required to be submitted by the claimant to substantiate the claim.'.

(2) EFFECTIVE DATE- Subsection (b) of section 5103 of title 38, United States Code, as added by paragraph (1) shall apply with respect to notice provided after the date that is one year after the date of the enactment of this Act.

(3) DEADLINE FOR CREATION OF CHECKLIST- By not later than 180 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall create the checklist required under such subsection, as so added.

(4) SUBMITTAL TO CONGRESS- Not later than 60 days after the Secretary creates the checklist required by such subsection, as so added, the Secretary shall submit to Congress the checklist.

SEC. 108. STUDY AND REPORT ON EMPLOYING MEDICAL PROFESSIONALS TO ASSIST EMPLOYEES OF VETERANS BENEFITS ADMINISTRATION.

(a) Study- The Secretary of Veterans Affairs shall conduct a study to evaluate the need of the Veterans Benefits Administration of the Department of Veterans Affairs to employ, in addition to medical professionals of the Veterans Health Administration, medical professionals, including medical professionals who are not physicians, to act as a medical reference for employees of the Administration so that such employees may accurately assess medical evidence submitted in support of claims for benefits under laws administered by the Secretary. In no case shall any such medical professional be employed to rate any disability or evaluate any claim. In conducting the study, the Secretary shall conduct statistically significant surveys of employees of the Administration to ascertain whether, how, and to what degree medical professionals could provide assistance to such employees.

(b) Report to Congress- Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to Congress a report on the study conducted under subsection (a).

(c) Access to Medical Professionals- If the Secretary hires medical professionals pursuant to the study conducted under this section, the Secretary shall ensure that employees employed by all regional offices of the Veterans Benefits Administration have access to such medical professionals.

SEC. 109. ASSIGNMENT OF PARTIAL DISABILITY RATINGS TO QUALIFYING VETERANS.

(a) In General- Chapter 11 of title 38, United States Code, is amended by inserting after section 1155 the following new section:

`Sec. 1156. Partial disability ratings

`(a) Assignment of Partial Ratings- For the purpose of providing disability compensation under this chapter to a qualifying veteran, the Secretary shall assign a partial disability rating to the veteran as follows:

`(1) In the case of a qualifying veteran described in subsection (b)(3)(A), a rating of 100 percent.

`(2) In the case of a qualifying veteran described in subsection (b)(3)(B), a rating of 50 percent.

`(b) Qualifying Veteran- For the purposes of this section, a qualifying veteran is a veteran--

`(1) who has been discharged from active duty service for 365 days or less;

`(2) for whom a permanent disability rating is not immediately assignable under the regular provisions of the schedule for rating disabilities under section 1155 of this title or on the basis of individual unemployability; and

`(3) who has--

`(A) a severe disability for whom substantially gainful employment is not feasible or advisable; or

`(B) a wound or injury, whether healed, unhealed or incompletely healed for whom material impairment of employability is likely.

`(c) Examinations- A medical examination of a qualifying veteran is not required to be performed before assigning a partial disability rating to the veteran under this section, but the fact that such an examination is conducted shall not prevent the Secretary from assigning such a rating.

`(d) Termination of Partial Rating- (1) Except as provided in paragraph (2), a partial disability rating assigned to a veteran under this section shall remain in effect until the earlier of the following dates:

`(A) The date on which the veteran receives a permanent disability rating based on the schedule for rating disabilities under section 1155 of this title.

`(B) The date that is 365 days after the date of the veteran's last separation or release from active duty.

`(2) The Secretary may extend a partial disability rating assigned to a veteran under this section beyond the applicable termination date under paragraph (1), if the Secretary determines that such an extension is appropriate.'.

(b) Effective Date- Section 1156 of title 38, United States Code, as added by paragraph (1), shall take effect on the date of the enactment of this Act.

(c) Clerical Amendment- The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1155 the following new item:

`1156. Partial disability ratings.'.

SEC. 110. REVIEW AND ENHANCEMENT OF USE OF INFORMATION TECHNOLOGY AT VETERANS BENEFITS ADMINISTRATION.

(a) Review and Comprehensive Plan- By not later than one year after the date of the enactment of this Act, the Secretary of Veterans Affairs shall conduct a review of the use of information technology at the Veterans Benefits Administration and develop a comprehensive plan for the use of such technology in processing claims for benefits under laws administered by the Secretary of Veterans Affairs that would reduce subjectivity, avoidable remands, and regional office variances in disability ratings.

(b) Information Technology- The plan developed under subsection (a) shall include--

(1) the use of rules-based processing and information technology systems and automated decision support software at all levels of processing claims;

(2) the enhancement of the use of information technology for all aspects of the claims process;

(3) a technological platform that allows for the use of information that members of the Armed Forces, veterans, and dependents have submitted electronically, including uploaded military records, medical evidence, and other appropriate documentation, and the capability to view applications for benefits submitted online;

(4) the use of electronic examination templates in conjunction with the schedule for rating disabilities under section 1155 of title 38, United States Code;

(5) making such changes as may be required to the information technology system of the Department so as to ensure that users of such system are able to access the service medical records of the Department of Defense by not later than one year after the date on which the plan is implemented;

(6) the provision of bi-directional access to medical records and service records between the Department of Veterans Affairs and the Department of Defense; and

(7) the availability, on the Internet website of the Department, of a mechanism that can be used by a claimant to check on the status of any claim submitted by that claimant and that provides information on--

(A) whether a decision has been reached with respect to such a claim, notice of the decision; or

(B) if no such decision has been reached, notice of--

(i) whether the application submitted by the claimant is complete;

(ii) whether the Secretary requires additional information or evidence to process the claim;

(iii) the estimated date on which a decision with respect to the claim is expected to be made; and

(iv) the stage at which the claim is being processed as of the date on which such status is checked.

(c) Review of Best Practices and Lessons Learned- In carrying out this section, the Secretary shall review best practices and lessons learned within the Department of Veterans Affairs and the use of the technology known as `VistA' by other Government entities and private sector organizations who employ information technology and automated decision support software

(d) Reduction of Claims Processing Time- In carrying out this section, the Secretary shall ensure that a plan is developed that, within three years of implementation, would reduce the processing time for each claim processed by the Veterans Benefits Administration to not longer than the average amount of time to required to process a claim, as identified by the Secretary in the most recent annual report submitted by the Secretary under section 7734 of title 38, United States Code.

(e) Consultation- In carrying out this section, the Secretary of Veterans Affairs shall consult with information technology designers at the Veterans Health Administration, VistA managers, the Secretary of Defense, appropriate officials of other Government agencies, appropriate individuals in the private and public sectors, veterans service organizations, and other relevant service organizations.

(f) Report to Congress- By not later than January 1, 2009, the Secretary shall submit to Congress a report on the review and comprehensive plan required under this section.

SEC. 111. TREATMENT OF CLAIMS UPON DEATH OF CLAIMANT.

(a) Treatment of Beneficiary of Veteran's Accrued Benefits as Claimant for Purposes of Incomplete Claims Upon Death of Veteran- Chapter 51 of title 38, United States Code, is amended by inserting after section 5121 the following new section:

`Sec. 5121A. Substitution in case of death of claimant

`(a) Substitution- If a veteran who is a claimant dies while a claim for any benefit under a law administered by the Secretary, or an appeal of a decision with respect to such a claim, is pending and awaiting adjudication, the person who would receive any accrued benefits due to the veteran under section 5121(a)(2) of this title shall be treated as the claimant for the purposes of processing the claim to completion, except that such person may only submit new evidence in support of the claim during the one-year period beginning on the date of the death of the veteran.

`(b) Limitation- Only one person may be treated as the claimant under subsection (a).

`(c) Designation of Third Party- If the person who would be eligible to be treated as the claimant under subsection (a) certifies to the Secretary that the person does not want to be treated as the claimant for such purposes, such person may designate the person who would receive the benefits under section 5121(a)(2) upon the death of the person who would otherwise be treated as the claimant under subsection (a) to be treated as the claimant for the purposes of processing the claim to completion.'.

(b) Clerical Amendment- The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 5121 the following new item:

`5121A. Death of claimant.'.

(c) Effective Date- The amendments made by this section shall apply with respect to the claim of any veteran who dies on or after the date of the enactment of this Act.

TITLE II--MATTERS RELATING TO UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

SEC. 201. ANNUAL REPORTS ON WORKLOAD OF UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS.

(a) In General- Subchapter III of chapter 72 of title 38, United States Code, is amended by adding at the end the following new section:

`Sec. 7288. Annual report

`The chief judge of the Court shall annually submit to the Committee on Veterans' Affairs of the Senate and the Committee on Veterans' Affairs of the House of Representatives a report summarizing the workload of the Court during the last fiscal year that ended before the submission of such report. Such report shall include, with respect to such fiscal year, the following information:

`(1) The number of appeals filed.

`(2) The number of petitions filed.

`(3) The number of applications filed under section 2412 of title 28.

`(4) The number and type of dispositions, including settlements.

`(5) The median time from filing to disposition.

`(6) The number of oral arguments.

`(7) The number and status of pending appeals and petitions and of applications described in paragraph (3).

`(8) A summary of any service performed by recalled retired judges during the fiscal year.

`(9) The number of decisions or dispositions rendered by a single judge, multi-judge panels and the full Court.

`(10) The number of cases pending longer than 18 months.'.

(b) Clerical Amendment- The table of sections at the beginning of chapter 72 of such title is amended by inserting after the item related to section 7287, the following new item:

`7288. Annual report.'.

SEC. 202. MODIFICATION OF JURISDICTION AND FINALITY OF DECISIONS OF UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS.

(a) Modification- Section 7252(a) of title 38, United States Code, is amended--

(1) by striking the third sentence; and

(2) by adding at the end the following new sentence: `The Court shall have power to affirm, modify, reverse, remand, or vacate and remand a decision of the Board after deciding all relevant assignments of error raised by an appellant for each particular claim for benefits. In a case in which the Court reverses a decision on the merits of a particular claim and orders an award of benefits, the Court need not decide any additional assignments of error with respect to that claim.'

(b) Effective Date- The amendments made by subsection (a) shall apply with respect to a decision of the Board of Veterans' Appeals made on or after the date of the enactment of this Act.

END