To amend title 38, United States Code, to improve the authorities of the Department of Veterans Affairs relating to compensation, dependency and indemnity compensation, pension, education benefits, life insurance benefits, and memorial benefits, to improve the administration of benefits for veterans, and for other purposes.

May 22, 2003

Mr. SPECTER (by request) introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs

To amend title 38, United States Code, to improve the authorities of the Department of Veterans Affairs relating to compensation, dependency and indemnity compensation, pension, education benefits, life insurance benefits, and memorial benefits, to improve the administration of benefits for veterans, 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; REFERENCES TO TITLE 38, UNITED STATES CODE.

(a) SHORT TITLE- This Act may be cited as the `Veterans Programs Improvement Act of 2003'.

(b) REFERENCES- Except as otherwise expressly provided, wherever in this Act an amendment is expressed in terms of an amendment to a section or other provision, the reference shall be considered to be made to a section or other provision of title 38, United States Code.

SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION AND DEPENDENCY AND INDEMNITY COMPENSATION.

(a) RATE ADJUSTMENT- The Secretary of Veterans Affairs shall, effective on December 1, 2003, increase the dollar amounts in effect for the payment of disability compensation and dependency and indemnity compensation by the Secretary, as specified in subsection (b).

(b) AMOUNTS TO BE INCREASED- The dollar amounts to be increased pursuant to subsection (a) are the following:

(1) COMPENSATION- Each of the dollar amounts in effect under section 1114.

(2) ADDITIONAL COMPENSATION FOR DEPENDENTS- Each of the dollar amounts in effect under section 1115(1).

(3) CLOTHING ALLOWANCE- The dollar amount in effect under section 1162.

(4) NEW DIC RATES- Each of the dollar amounts in effect under paragraphs (1) and (2) of section 1311(a).

(5) OLD DIC RATES- Each of the dollar amounts in effect under section 1311(a)(3).

(6) ADDITIONAL DIC FOR SURVIVING SPOUSES WITH MINOR CHILDREN- The dollar amount in effect under section 1311(b);

(7) ADDITIONAL DIC FOR DISABILITY- Each of the dollar amounts in effect under subsections (c) and (d) of section 1311.

(8) DIC FOR DEPENDENT CHILDREN- Each of the dollar amounts in effect under sections 1313(a) and 1314.

(c) DETERMINATION OF INCREASE-

(1) The increase under subsection (a) shall be made in the dollar amounts specified in subsection (b) as in effect on November 30, 2003.

(2) Except as provided in paragraph (3), each such amount shall be increased by the same percentage as the percentage by which benefit amounts payable under title II of the Social Security Act (42 U.S.C. 401 et seq.) are increased effective December 1, 2003, as a result of a determination under section 215(i) of such Act (42 U.S.C. 415(i)).

(3) Each dollar amount increased pursuant to paragraph (2) shall, if not a whole dollar amount, be rounded down to the next lower whole dollar amount.

(d) SPECIAL RULE- The Secretary may adjust administratively, consistent with the increases made under subsection (a), the rates of disability compensation payable to persons within the purview of section 10 of Public Law No. 85-857 (72 Stat. 1263) who are not in receipt of compensation payable pursuant to chapter 11 of title 38, United States Code.

(e) PUBLICATION OF ADJUSTED RATES- At the same time as the matters specified in section 215(i)(2)(D) of the Social Security Act (42 U.S.C. 415(i)(2)(D)) are required to be published by reason of a determination made under section 215(i) of such Act during fiscal year 2004, the Secretary of Veterans Affairs shall publish in the Federal Register the amounts specified in subsection (b) as increased pursuant to subsection (a).

SEC. 3. REPEAL OF 45-DAY RULE FOR EFFECTIVE DATE OF AWARD OF DEATH PENSION.

Subsection (d) of section 5110 is amended--

(1) by striking the designation `(1)';

(2) by striking `death compensation or dependency and indemnity compensation' and inserting `death compensation, dependency and indemnity compensation, or death pension'; and

(3) by striking paragraph (2).

SEC. 4. EXCLUSION OF LUMP-SUM LIFE INSURANCE PROCEEDS FROM DETERMINATIONS OF ANNUAL INCOME FOR PENSION PURPOSES.

Subsection (a) of section 1503 is amended--

(1) by striking `and' at the end of paragraph (9);

(2) by striking `materials.' at the end of paragraph (10)(B) and inserting `materials; and'; and

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

`(11) lump-sum proceeds of any life insurance policy or policies on a veteran, for purposes of pension under subchapter III of this chapter.'.

SEC. 5. CLARIFICATION OF PROHIBITION ON PAYMENT OF COMPENSATION FOR ALCOHOL OR DRUG-RELATED DISABILITY.

(a) CLARIFICATION- Chapter 11 is amended--

(1) in section 1110, by striking `drugs.' and inserting `drugs, even if the abuse is secondary to a service-connected disability.'; and

(2) in section 1131, by striking `drugs.' and inserting `drugs, even if the abuse is secondary to a service-connected disability.'.

(b) APPLICABILITY- The amendments made by subsection (a) shall apply to any claim--

(1) filed on or after the date of enactment of this Act; or

(2) filed before the date of enactment of this Act and not finally decided as of that date.

SEC. 6. ALTERNATIVE BENEFICIARIES FOR NATIONAL SERVICE LIFE INSURANCE AND UNITED STATES GOVERNMENT LIFE INSURANCE.

(a) NATIONAL SERVICE LIFE INSURANCE-

(1) Section 1917 is amended by adding at the end the following new subsection:

`(f)(1) Following the death of the insured and in a case not covered by subsection (d)--

`(A) if the first beneficiary otherwise entitled to payment of the insurance does not make a claim for such payment within two years after the death of the insured, payment may be made to another beneficiary designated by the insured, in the order of precedence as designated by the insured, as if the first beneficiary had predeceased the insured; and

`(B) if, within four years after the death of the insured, no claim has been filed by a person designated by the insured as a beneficiary and the Secretary has not received any notice in writing that any such claim will be made, payment may (notwithstanding any other provision of law) be made to such person as may in the judgment of the Secretary be equitably entitled thereto.

`(2) Payment of insurance under paragraph (1) shall be a bar to recovery by any other person.'.

(b) UNITED STATES GOVERNMENT LIFE INSURANCE- Section 1952 is amended by adding at the end the following new subsection:

`(c)(1) Following the death of the insured and in a case not covered by section 1950 of this title--

`(A) if the first beneficiary otherwise entitled to payment of the insurance does not make a claim for such payment within two years after the death of the insured, payment may be made to another beneficiary designated by the insured, in the order of precedence as designated by the insured, as if the first beneficiary had predeceased the insured; and

`(B) if, within four years after the death of the insured, no claim has been filed by a person designated by the insured as a beneficiary and the Secretary has not received any notice in writing that any such claim will be made, payment may (notwithstanding any other provision of law) be made to such person as may in the judgment of the Secretary be equitably entitled thereto.

`(2) Payment of insurance under paragraph (1) shall be a bar to recovery by any other person.'.

(c) TRANSITION PROVISION- In the case of a person insured under subchapter I or II of chapter 19, title 38, United States Code, who dies before the date of the enactment of this Act, the two-year and four-year periods specified in subsection (f)(1) of section 1917 of title 38, United States Code, as added by subsection (a), and subsection (c)(1) of section 1952 of such title, as added by subsection (b), as applicable, shall for purposes of the applicable subsection be treated as being the two-year and four-year periods, respectively, beginning on the date of the enactment of this Act.

SEC. 7. TIME LIMITATION ON RECEIPT OF CLAIM INFORMATION PURSUANT TO REQUEST BY DEPARTMENT OF VETERANS AFFAIRS.

(a) IN GENERAL- Section 5102 is amended by adding at the end the following new subsection:

`(c) TIME LIMITATION-

`(1) If information that a claimant and the claimant's representative, if any, are notified under subsection (b) is necessary to complete an application is not received by the Secretary within one year from the date of such notification, no benefit may be paid or furnished by reason of the claimant's application.

`(2) This subsection shall not apply to any application or claim for Government life insurance benefits.'.

(b) REPEAL OF SUPERSEDED PROVISIONS- Section 5103 is amended--

(1) by striking `(a) REQUIRED INFORMATION AND EVIDENCE- '; and

(2) by striking subsection (b).

(c) EFFECTIVE DATE- The amendments made by this section shall take effect as if enacted on November 9, 2000, immediately after the enactment of the Veterans Claims Assistance Act of 2000 (Public Law 106-475; 114 Stat. 2096).

SEC. 8. BURIAL PLOT ALLOWANCE.

(a) Subsection (b) of section 2303 is amended--

(1) in the matter preceding paragraph (1), by striking `a burial allowance under such section 2302, or under such subsection, who was discharged from the active military, naval, or air service for a disability incurred or aggravated in line of duty, or who is a veteran of any war' and inserting `burial in a national cemetery under section 2402 of this title'; and

(2) in paragraph (2), by striking `(other than a veteran whose eligibility for benefits under this subsection is based on being a veteran of any war)' and inserting `is eligible for a burial allowance under section 2302 of this title or under subsection (a) of this section, or was discharged from the active military, naval, or air service for a disability incurred or aggravated in line of duty, and such veteran'.

(b) Section 2307 is amended in the last sentence by striking `and (b)' and inserting `and (b)(2)'.

SEC. 9. PROVISION OF MARKERS FOR PRIVATELY MARKED GRAVES.

(a) IN GENERAL- Subsection (d) of section 502 of the Veterans Education and Benefits Expansion Act of 2001 (Public Law 107-103; 115 Stat. 995), as amended by section 203 of the Veterans Benefits Act of 2002 (Public Law 107-330; 116 Stat. 2824), is further amended by striking `September 11, 2001' and inserting `November 1, 1990'.

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect as if included in the enactment of section 502 of Public Law 107-103.

SEC. 10. EXPANSION OF BURIAL ELIGIBILITY FOR REMARRIED SPOUSES.

(a) IN GENERAL- Paragraph (5) of section 2042 is amended by striking `(which for purposes of this chapter includes an unremarried surviving spouse who had a subsequent remarriage which was terminated by death or divorce)' and inserting `(which for purposes of this chapter includes a surviving spouse who remarries following the veteran's death)'.

(b) EFFECTIVE DATE- The amendments made by subsection (a) shall apply to deaths occurring on or after the date of the enactment of this Act.

SEC. 11. MAKE PERMANENT AUTHORITY FOR STATE CEMETERY GRANTS PROGRAM.

(a) PERMANENT AUTHORIZATION- Paragraph (2) of section 2408(a) is amended--

(1) by striking `for fiscal year 1999 and for each succeeding fiscal year through fiscal year 2004'; and

(2) by adding at the end `Funds appropriated under the preceding sentence shall remain available until expended.'.

(b) TECHNICAL AMENDMENT- Subsection (e) of section 2408 is amended by striking `Sums appropriated under subsection (a) of this section shall remain available until expended.'.

SEC. 12. FORFEITURE OF BENEFITS FOR SUBVERSIVE ACTIVITIES.

(a) ADDITION OF CERTAIN OFFENSES- Paragraph (2) of section 6105(b) is amended by striking `sections 792, 793, 794, 798, 2381, 2382, 2383, 2384, 2385, 2837, 2388, 2389, 2390, and chapter 105 of title 18' and inserting `sections 175, 229, 792, 793, 794, 798, 831, 1091, 2332a, 2332b, 2381, 2382, 2383, 2384, 2385, 2387, 2388, 2389, 2390, and chapter 105 of title 18'.

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to claims filed after the date of the enactment of this Act.

SEC. 13. VETERANS' ADVISORY COMMITTEE ON EDUCATION.

Section 3692 is amended--

(1) in subsection (a), by inserting `as far as practicable' after `include';

(2) in subsections (a) and (b), by striking `chapter 106' and inserting `chapter 1606' both places it appears; and

(3) in subsection (c), by striking `2003' and inserting `2013'.

SEC. 14. REPEAL OF EDUCATION LOAN PROGRAM.

(a) TERMINATION OF PROGRAM- No loans shall be made under subchapter III of chapter 36 after the date of the enactment of this Act, and such subchapter shall be repealed 90 days after such date of enactment.

(b) CLOSING OF LOAN FUND- All monies in the revolving fund established in the Treasury of the United States of America known as the `Department of Veterans Affairs Education Loan Fund' (the `Fund') on the day before the date of repeal of such subchapter III shall be transferred to the Department of Veterans Affairs Readjustment Benefits Account, and the Fund shall be closed.

(c) DISCHARGE OF LIABILITY- The liability on any education loan debt outstanding under such subchapter III shall be discharged, and any overpayments declared under section 3698(e)(1) of that subchapter shall be waived without further process on the date funds are transferred as referred to in subsection (b) of this section.

(d) TECHNICAL AMENDMENT- On the date of repeal of such subchapter III, as provided herein, the table of sections at the beginning of chapter 36 shall be amended by striking the items relating to subchapter III.

(e) CONFORMING AMENDMENTS-

(1) Chapter 34 is amended--

(A) by repealing paragraph (2) of section 3462(a); and

(B) in paragraph (1) of section 3485(e), by striking `(other than an education loan under subchapter III)'.

(2) Section 3512 is amended by repealing subsection (f).

(3) The amendments made by paragraphs (1)(B) and (2) shall take effect 90 days after the date of the enactment of this Act.

SEC. 15. RESTORATION OF CHAPTER 35 EDUCATION BENEFITS OF CERTAIN INDIVIDUALS.

(a) RESTORATION- Subsection (h) of section 3512 is amended by inserting `or is involuntarily ordered to full-time National Guard duty under section 502(f) of title 32' following `title 10'.

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect as of September 11, 2001.

SEC. 16. EXPANSION OF MONTGOMERY GI BILL EDUCATION BENEFITS FOR CERTAIN SELF-EMPLOYMENT TRAINING.

(a) SELF-EMPLOYMENT TRAINING- Subparagraph (B) of section 3002(3) is amended--

(1) in clause (i) by striking `and';

(2) by adding at the end the following clause:

`(iii) a program of self-employment on-job training approved as provided in section 3677(d) of this title; and'.

(b) PROGRAM APPROVAL- Section 3677 is amended--

(1) in subsections (a) and (c), by inserting `self-employment on-job training or' after `(other than';

(2) in subsection (b)(1), by inserting `described in subsection (a)' after `offering training'; and

(3) by adding at the end the following new subsection:

`(d)(1) Any State approving agency may approve a program of self-employment on-job training for purposes of chapter 30 of this title only when it finds that the training is generally recognized as needed or accepted for purposes of obtaining licensure to engage in the self-employment occupation or is required for ownership and operation of a franchise that is the objective of the training.

`(2) The training entity offering the training for which approval is sought under this chapter must submit to the State approving agency a written application for approval, in the form and with the content as prescribed by the Secretary, which shall include such information as is required by the State approving agency.

`(3) As a condition for approving a program of self-employment on-job training, the State approving agency must find upon investigation that the following criteria are met:

`(A) The training content is adequate to qualify the eligible individual for the self-employment occupation that is the objective of the training.

`(B) The training consists of full-time training for a period of less than six months.

`(C) The length of the training period is not longer than that customarily required to obtain the knowledge, skills, and experience needed to successfully engage in the particular self-employment occupation that is the objective of the training.

`(D) The training entity has adequate instructional space, equipment, materials, and personnel to provide satisfactory training on the job.

`(E) The training entity keeps adequate records of each trainee's progress toward the self-employment objective and, at the end of the training period, issues a license, certificate, or other document recording the individual's successful completion of the training program.

`(F) The training entity and the self-employment on-job training program meet such other criteria as the Secretary may prescribe and as the State approving agency, with the Secretary's approval, may establish.'.

(c) CONFORMING AMENDMENT- Paragraph (2) of section 3687(a) is amended by inserting `subsections (a), (b), and (c) of' before `section 3677'.

(d) EFFECTIVE DATE- The amendments made by this section shall take effect on the date six months after the enactment of this Act and shall apply to self-employment on-job training approved and pursued on or after that date.

END