2000
<PRE>[DOCID: f:h2540ih.txt]






107th CONGRESS
  1st Session
                                H. R. 2540

To amend title 38, United States Code, to make various improvements to 
veterans benefits programs under laws administered by the Secretary of 
               Veterans Affairs, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 18, 2001

   Mr. Smith of New Jersey (for himself, Mr. Evans, Mr. Simpson, Mr. 
Reyes, Mr. Stump, Mr. Filner, Mr. Bilirakis, Ms. Brown of Florida, Mr. 
 Buyer, Mr. Rodriguez, Mr. Baker, Mr. Shows, Mr. Simmons, Mr. Udall of 
New Mexico, Mr. Brown of South Carolina, and Mrs. Capps) introduced the 
   following bill; which was referred to the Committee on Veterans' 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
To amend title 38, United States Code, to make various improvements to 
veterans benefits programs under laws administered by the Secretary of 
               Veterans Affairs, 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 Benefits 
Act of 2001''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.
TITLE I--ANNUAL COST-OF-LIVING ADJUSTMENT IN COMPENSATION AND DIC RATES

Sec. 101. Increase in rates of disability compensation and dependency 
                            and indemnity compensation.
Sec. 102. Publication of adjusted rates.
                   TITLE II--COMPENSATION PROVISIONS

Sec. 201. Presumption that diabetes mellitus (type 2) is service-
                            connected.
Sec. 202. Inclusion of illnesses that cannot be clearly defined in 
                            presumption of service connection for Gulf 
                            War veterans.
Sec. 203. Preservation of service connection for undiagnosed illnesses 
                            to provide for participation in research 
                            projects by Gulf War veterans.
    TITLE III--ADMINISTRATION OF UNITED STATES COURT OF APPEALS FOR 
                            VETERANS CLAIMS

Sec. 301. Registration fees.
Sec. 302. Administrative authorities.
                        TITLE IV--OTHER MATTERS

Sec. 401. Payment of insurance proceeds to an alternate beneficiary 
                            when first beneficiary cannot be 
                            identified.
Sec. 402. Extension of copayment requirement for outpatient 
                            prescription medications.
Sec. 403. Repeal of Department of Veterans Affairs Health Services 
                            Improvement Fund.
Sec. 404. Native American veteran housing loan pilot program.
Sec. 405. Modification of loan assumption notice requirement.
Sec. 406. Elimination of requirement for providing a copy of notice of 
                            appeal to the Secretary.
Sec. 407. Pilot program for expansion of toll-free telephone access to 
                            veterans service representatives.
Sec. 408. Technical and clerical amendments.
Sec. 409. Codification of recurring provisions in annual Department of 
                            Veterans Affairs appropriations Acts.

SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE.

    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 considered to 
be made to a section or other provision of title 38, United States 
Code.

TITLE I--ANNUAL COST-OF-LIVING ADJUSTMENT IN COMPENSATION AND DIC RATES

SEC. 101. INCREASE IN RATES OF DISABILITY COMPENSATION AND DEPENDENCY 
              AND INDEMNITY COMPENSATION.

    (a) Rate Adjustment.--The Secretary of Veterans Affairs shall, 
effective on December 1, 2001, 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 of title 38, United States Code.
            (2) Additional compensation for dependents.--Each of the 
        dollar amounts in effect under sections 1115(1) of such title.
            (3) Clothing allowance.--The dollar amount in effect under 
        section 1162 of such title.
            (4) New dic rates.--The dollar amounts in effect under 
        paragraphs (1) and (2) of section 1311(a) of such title.
            (5) Old dic rates.--Each of the dollar amounts in effect 
        under section 1311(a)(3) of such title.
            (6) Additional dic for surviving spouses with minor 
        children.--The dollar amount in effect under section 1311(b) of 
        such title.
            (7) Additional dic for disability.--The dollar amounts in 
        effect under sections 1311(c) and 1311(d) of such title.
            (8) DIC for dependent children.--The dollar amounts in 
        effect under sections 1313(a) and 1314 of such title.
    (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, 2001.
    (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, 2001, 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 85-857 (72 Stat. 1263) who are not in receipt 
of compensation payable pursuant to chapter 11 of title 38, United 
States Code.

SEC. 102. 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 2002, the Secretary of Veterans Affairs 
shall publish in the Federal Register the amounts specified in 
subsection (b) of section 2, as increased pursuant to that section.

                   TITLE II--COMPENSATION PROVISIONS

SEC. 201. PRESUMPTION THAT DIABETES MELLITUS (TYPE 2) IS SERVICE-
              CONNECTED.

    Section 1116(a)(2) is amended by adding at the end the following 
new subparagraph:
            ``(H) Diabetes Mellitus (Type 2).''.

SEC. 202. INCLUSION OF ILLNESSES THAT CANNOT BE CLEARLY DEFINED IN 
              PRESUMPTION OF SERVICE CONNECTION.

    (a) Illnesses That Cannot Be Clearly Defined.--(1) Subsection (a) 
of section 1117 is amended by inserting ``or fibromyalgia, chronic 
fatigue syndrome, a chronic multisymptom illness, or any other illness 
that cannot be clearly defined (or combination of illnesses that cannot 
be clearly defined)'' after ``illnesses)''.
    (2) Subsection (c) of such section is amended by inserting ``or 
fibromyalgia, chronic fatigue syndrome, a chronic multisymptom illness, 
or any other illness that cannot be clearly defined (or combination of 
illnesses that cannot be clearly defined)'' after ``illnesses)''.
    (b) Signs or Symptoms That May Indicate Undiagnosed Illnesses.--(1) 
Section 1117 is further amended by adding 
2000
at the end the following new 
subsection:
    ``(g) For purposes of this section, signs or symptoms that may be a 
manifestation of an undiagnosed illness include the following:
            ``(1) Fatigue.
            ``(2) Unexplained rashes or other dermatological signs or 
        symptoms.
            ``(3) Headache.
            ``(4) Muscle pain.
            ``(5) Joint pain.
            ``(6) Neurologic signs or symptoms.
            ``(7) Neuropsychological signs or symptoms.
            ``(8) Signs or symptoms involving the respiratory system 
        (upper or lower).
            ``(9) Sleep disturbances.
            ``(10) Gastrointestinal signs or symptoms.
            ``(11) Cardiovascular signs or symptoms.
            ``(12) Abnormal weight loss.
            ``(13) Menstrual disorders.''.
    (2) Section 1118(a) of such title is amended by adding at the end 
the following new paragraph:
    ``(4) For purposes of this section, signs or symptoms that may be a 
manifestation of an undiagnosed illness include the signs and symptoms 
listed in section 1117(g) of this title.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on April 1, 2002.

SEC. 203. PRESERVATION OF SERVICE CONNECTION FOR UNDIAGNOSED ILLNESSES 
              TO PROVIDE FOR PARTICIPATION IN RESEARCH PROJECTS BY GULF 
              WAR VETERANS.

    (a) Authority for Secretary To Provide for Participation Without 
Loss of Benefits.--Section 1117 is amended by adding after subsection 
(g), as added by section 202(b), the following new subsection:
    ``(h)(1) If the Secretary determines with respect to a medical 
research project sponsored by the Department that it is necessary for 
the conduct of the project that Persian Gulf veterans in receipt of 
compensation under this section or section 1118 of this title 
participate in the project without the possibility of loss of service 
connection under either such section, the Secretary shall provide that 
service connection granted under either such section for disability of 
a veteran who participated in the research project may not be 
terminated.
    ``(2) Paragraph (1) does not apply in a case in which--
            ``(A) the original award of compensation or service 
        connection was based on fraud; or
            ``(B) it is clearly shown from military records that the 
        person concerned did not have the requisite service or 
        character of discharge.
    ``(3) The Secretary shall publish in the Federal Register a notice 
of each determination made by the Secretary under paragraph (1) with 
respect to a medical research project.''.
    (b) Effective Date.--The authority provided by subsection (h) of 
section 1117 of title 38, United States Code, as added by subsection 
(a), may be used by the Secretary of Veterans Affairs with respect to 
any medical research project of the Department of Veterans Affairs, 
whether commenced before, on, or after the date of the enactment of 
this Act.

    TITLE III--ADMINISTRATION OF UNITED STATES COURT OF APPEALS FOR 
                            VETERANS CLAIMS

SEC. 301. REGISTRATION FEES.

    (a) Fees for Court-Sponsored Activities.--Subsection (a) of section 
7285 is amended by adding at the end the following new sentence: ``The 
Court may also impose registration fees on persons participating in a 
judicial conference convened pursuant to section 7286 of this title or 
any other court-sponsored activity.''.
    (b) Use of Fees.--Subsection (b) of such section is amended by 
striking ``for the purposes of (1)'' and all that follows through the 
period and inserting ``for the following purposes:
            ``(1) Conducting investigations and proceedings, including 
        employing independent counsel, to pursue disciplinary matters.
            ``(2) Defraying the expenses of--
                    ``(A) judicial conferences convened pursuant to 
                section 7286 of this title; and
                    ``(B) other activities and programs that are 
                designed to support and foster bench and bar 
                communication and relationships or the study, 
                understanding, public commemoration, or improvement of 
                veterans law or of the work of the Court.''.
    (c) Clerical Amendments.--(1) The heading for such section is 
amended to read as follows:
``Sec. 7285. Practice and registration fees''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 72 is amended to read as follows:

``7285. Practice and registration fees.''.

SEC. 302. ADMINISTRATIVE AUTHORITIES.

    (a) In General.--Subchapter III of chapter 72 is amended by adding 
at the end the following new section:
``Sec. 7287. Administration
    ``Notwithstanding any other provision of law, the Court of Appeals 
for Veterans Claims may exercise, for purposes of management, 
administration, and expenditure of funds, the authorities provided for 
such purposes by any provision of law (including any limitation with 
respect to such provision) applicable to a court of the United States 
as defined in section 451 of title 28, except to the extent that such 
provision of law is inconsistent with a provision of this chapter.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item related to section 
7286 the following new item:

7287. Administration.''.

                        TITLE IV--OTHER MATTERS

SEC. 401. PAYMENT OF INSURANCE PROCEEDS TO AN ALTERNATE BENEFICIARY 
              WHEN FIRST BENEFICIARY CANNOT BE IDENTIFIED.

    (a) NSLI.--Section 1917 is amended by adding at the end the 
following new subsection:
    ``(f)(1) Following the death of the insured--
            ``(A) if the first beneficiary otherwise entitled to 
        payment of the insurance proceeds does not make a claim for 
        such payment within three years after the death of the insured, 
        payment of the proceeds 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 five 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 of the 
        insurance proceeds may (notwithstanding any other provision of 
        law) be made to such person as may in the judgment of the 
        Secretary be equitably entitled to the proceeds of the policy.
    ``(2) Payment of insurance proceeds under paragraph (1) shall be a 
bar to recovery by any other person.''.
    (b) USGLI.--Section 1951 is amended--
            (1) by inserting ``(a)'' before ``United States 
        Government''; and
            (2) by adding at the end the following new subsection:
    ``(b)(1) Following the death of the insured--
            ``(A) if the first beneficiary otherwise entitled to 
        payment of the insurance proceeds does not make a claim for 
        such payment within three years after the death of the insured, 
        payment of the proceeds 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 five 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 of the 
        insurance proceeds may (notwithstanding any other provision of 
        law) be made to such person as may in the judgment of the 
        Secretary be equitably entitled to the proceeds of the policy.
    ``(2) Payment of insurance proceeds under paragraph (1) shall be a 
bar to recovery by any other person.''.
    (c) Transition Provision.-
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-In the case of a person insured under 
subchapter I or II of chapter 19 of title 38, United States Code, who 
dies before the date of the enactment of this Act, the three-year and 
five-year periods specified in subsection (f)(1) of section 1917 of 
title 38, United States Code, as added by subsection (a), and 
subsection (b)(1) of section 1951 of such title, as added by subsection 
(b), shall for purposes of the applicable subsection be treated as 
being the three-year and five-year periods, respectively, beginning on 
the date of the enactment of this Act.

SEC. 402. EXTENSION OF COPAYMENT REQUIREMENT FOR OUTPATIENT 
              PRESCRIPTION MEDICATIONS.

    Section 1722A(c) is amended by striking ``September 30, 2002'' and 
inserting ``September 30, 2006''.

SEC. 403. REPEAL OF DEPARTMENT OF VETERANS AFFAIRS HEALTH SERVICES 
              IMPROVEMENT FUND.

    (a) Repeal.--(1) Section 1729B is repealed. Any balance as of the 
date of the enactment of this Act in the Department of Veterans Affairs 
Health Services Improvement Fund established under such section shall 
be transferred to the Department of Veterans Affairs Medical Care 
Collections Fund established under section 1729A of title 38, United 
States Code.
    (2) The table of sections at the beginning of chapter 17 is amended 
by striking the item relating to section 1729B.
    (b) Additional Deposits for Medical Care Collections Fund.--Section 
1729A(b) is amended--
            (1) by redesignating paragraph (7) as paragraph (9); and
            (2) by inserting after paragraph (6) the following new 
        paragraphs:
            ``(7) Section 8165(a) of this title.
            ``(8) Section 113 of the Veterans Millennium Health Care 
        and Benefits Act (Public Law 106-117; 38 U.S.C. 8111 note).''.
    (c) Conforming Amendments.--
            (1) Section 1722A(c) is amended--
                    (A) in the first sentence, by striking ``under 
                subsection (a)'' and inserting ``under this section''; 
                and
                    (B) by striking the second sentence.
            (2) Section 8165 is amended by striking ``Department of 
        Veterans Affairs Health Services Improvement Fund established 
        under section 1729B of this title'' and inserting ``Department 
        of Veterans Affairs Medical Care Collections Fund established 
        under section 1729A of this title''.
            (3) Section 113(b) of the Veterans Millennium Health Care 
        and Benefits Act (Public Law 106-117; 38 U.S.C. 8111 note) is 
        amended by striking ``Department of Veterans Affairs Health 
        Services Improvement Fund established under section 1729B of 
        title 38 United States Code, as added by section 202'' and 
        inserting ``Department of Veterans Affairs Medical Care 
        Collections Fund established under section 1729A of title 38, 
        United States Code''.

SEC. 404. NATIVE AMERICAN VETERAN HOUSING LOAN PILOT PROGRAM.

    (a) Extension of Native American Veteran Housing Loan Pilot 
Program.--Section 3761(c) is amended by striking ``December 31, 2001'' 
and inserting ``December 31, 2005''.
    (b) Authorization of the Use of Certain Federal Memorandums of 
Understanding.--Section 3762(a)(1) is amended--
            (1) by inserting ``(A)'' after ``(1)'';
            (2) by striking ``and'' after the semicolon and inserting 
        ``or''; and
            (3) by adding at the end the following:
            ``(B) the tribal organization that has jurisdiction over 
        the veteran has entered into a memorandum of understanding with 
        any department or agency of the United States with respect to 
        direct housing loans to Native Americans that the Secretary 
        determines substantially complies with the requirements of 
        subsection (b); and''.

SEC. 405. MODIFICATION OF LOAN ASSUMPTION NOTICE REQUIREMENT.

    Section 3714(d) is amended to read as follows:
    ``(d) With respect to a loan guaranteed, insured, or made under 
this chapter, the Secretary shall provide, by regulation, that at least 
one instrument evidencing either the loan or the mortgage or deed of 
trust therefor, shall conspicuously contain, in such form as the 
Secretary shall specify, a notice in substantially the following form: 
`This loan is not assumable without the approval of the Department of 
Veterans Affairs or its authorized agent'.''.

SEC. 406. ELIMINATION OF REQUIREMENT FOR PROVIDING A COPY OF NOTICE OF 
              APPEAL TO THE SECRETARY.

    (a) Repeal.--Section 7266 is amended by striking subsection (b).
    (b) Conforming Amendments.--Such section is further amended--
            (1) by striking ``(1)'' after ``(a)'';
            (2) by redesignating paragraph (2) as subsection (b);
            (3) by redesignating paragraph (3) as subsection (c) and 
        redesignating subparagraphs (A) and (B) thereof as paragraphs 
        (1) and (2); and
            (4) by redesignating paragraph (4) as subsection (d) and by 
        striking ``paragraph (3)(B)'' therein and inserting 
        ``subsection (c)(2)''.

SEC. 407. PILOT PROGRAM FOR EXPANSION OF TOLL-FREE TELEPHONE ACCESS TO 
              VETERANS SERVICE REPRESENTATIVES.

    (a) Pilot Program.--The Secretary of Veterans Affairs shall conduct 
a pilot program to test the benefits and cost-effectiveness of 
expanding access to veterans service representatives of the Department 
of Veterans Affairs through a toll-free (so-called ``1-800'') telephone 
number. Under the pilot program, the Secretary shall expand the 
available hours of such access to veterans service representatives to 
not less than 12 hours on each regular business day and not less than 
six hours on Saturday.
    (b) Information To Be Provided.--The Secretary shall ensure, as 
part of the pilot program, that veterans service representatives of the 
Department of Veterans Affairs have available to them (in addition to 
information about benefits provided under laws administered by the 
Secretary) information about veterans benefits provided by--
            (1) all other departments and agencies of the United 
        States; and
            (2) State governments.
    (c) Consultation.--The Secretary shall establish the pilot program 
in consultation with the heads of other departments and agencies of the 
United States that provide veterans benefits.
    (d) Veterans Benefits Defined.--For purposes of this section, the 
term ``veterans benefits'' means benefits provided to a person based 
upon the person's own service, or the service of someone else, in the 
Armed Forces.
    (e) Period of Pilot Program.--The pilot program shall--
            (1) begin not later than six months after the date of the 
        enactment of this Act; and
            (2) end at the end of the two-year period beginning on the 
        date on which the program begins.
    (f) Report.--Not later than 120 days after the end of the pilot 
program, the Secretary shall submit to the Committees on Veterans' 
Affairs of the Senate and House of Representatives a report on the 
pilot program. The report shall provide the Secretary's assessment of 
the benefits and cost-effectiveness of continuing or making permanent 
the pilot program, including an assessment of the extent to which there 
is a demand for access to veterans service representatives during the 
period of expanded access to such representatives provided under the 
pilot program.

SEC. 408. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Amendments to Title 38, United States Code.--Title 38, United 
States Code, is amended as follows:
            (1)(A) Section 712 is repealed.
            (B) The table of sections at the beginning of chapter 7 is 
        amended by striking the item relating to section 712.
            (2) Section 1710B(c)(2)(B) is amended by inserting ``on'' 
        before ``November 30, 1999''.
            (3) Section 3695(a)(5) is amended by striking ``1610'' and 
        inserting ``1611''.
            (4) Section 4303(13) is amended by striking the second 
        period at the end.
    (b) Other Amendments.--
     
1dba
       (1) Section 1001(a)(2) of the Veterans' Benefits 
        Improvements Act of 1994 (38 U.S.C. 7721 note) is amended by 
        striking ``and'' at the end of subparagraph (C).
            (2) Section 12 of the Homeless Veterans Comprehensive 
        Service Programs Act of 1992 (38 U.S.C. 7721 note) is amended 
        in the first sentence by striking ``to carry out this Act'' and 
        all that follows in that sentence and inserting ``to carry out 
        this Act $50,000,000 for fiscal year 2001.''.

SEC. 409. CODIFICATION OF RECURRING PROVISIONS IN ANNUAL DEPARTMENT OF 
              VETERANS AFFAIRS APPROPRIATIONS ACTS.

    (a) Codification of Recurring Provisions.--Section 313 is amended 
by adding at the end the following new subsections:
    ``(c) Compensation and Pension.--Funds appropriated for 
Compensation and Pensions are available for the following purposes:
            ``(1) The payment of compensation benefits to or on behalf 
        of veterans as authorized by section 107 and chapters 11, 13, 
        51, 53, 55, and 61 of this title.
            ``(2) Pension benefits to or on behalf of veterans as 
        authorized by chapters 15, 51, 53, 55, and 61 of this title and 
        section 306 of the Veterans' and Survivors' Pension Improvement 
        Act of 1978.
            ``(3) The payment of benefits as authorized under chapter 
        18 of this title.
            ``(4) Burial benefits, emergency and other officers' 
        retirement pay, adjusted-service credits and certificates, 
        payments of premiums due on commercial life insurance policies 
        guaranteed under the provisions of article IV of the Soldiers' 
        and Sailors' Civil Relief Act of 1940 (50 U.S.C. App. 540 et 
        seq.), and other benefits as authorized by sections 107, 1312, 
        1977, and 2106 and chapters 23, 51, 53, 55, and 61 of this 
        title and the World War Adjusted Compensation Act (43 Stat. 
        122, 123), the Act of May 24, 1928 (Public Law No. 506 of the 
        70th Congress; 45 Stat. 735), and Public Law 87-875 (76 Stat. 
        1198).
    ``(d) Medical Care.--Funds appropriated for Medical Care are 
available for the following purposes:
            ``(1) The maintenance and operation of hospitals, nursing 
        homes, and domiciliary facilities.
            ``(2) Furnishing, as authorized by law, inpatient and 
        outpatient care and treatment to beneficiaries of the 
        Department, including care and treatment in facilities not 
        under the jurisdiction of the Department.
            ``(3) Furnishing recreational facilities, supplies, and 
        equipment.
            ``(4) Funeral and burial expenses and other expenses 
        incidental to funeral and burial expenses for beneficiaries 
        receiving care from the Department.
            ``(5) Administrative expenses in support of planning, 
        design, project management, real property acquisition and 
        disposition, construction, and renovation of any facility under 
        the jurisdiction or for the use of the Department.
            ``(6) Oversight, engineering, and architectural activities 
        not charged to project cost.
            ``(7) Repairing, altering, improving, or providing 
        facilities in the medical facilities and homes under the 
        jurisdiction of the Department, not otherwise provided for, 
        either by contact or by the hire of temporary employees and 
        purchase of materials.
            ``(8) Uniforms or uniform allowances, as authorized by 
        sections 5901 and 5902 of title 5.
            ``(9) Aid to State homes, as authorized by section 1741 of 
        this title.
            ``(10) Administrative and legal expenses of the Department 
        for collecting and recovering amounts owed the Department as 
        authorized under chapter 17 of this title and Public Law 87-
        693, popularly known as the Federal Medical Care Recovery Act 
        (42 U.S.C. 2651 et seq.).
    ``(e) Medical Administration and Miscellaneous Operating 
Expenses.--Funds appropriated for Medical Administration and 
Miscellaneous Operating Expenses are available for the following 
purposes:
            ``(1) The administration of medical, hospital, nursing 
        home, domiciliary, construction, supply, and research 
        activities authorized by law.
            ``(2) Administrative expenses in support of planning, 
        design, project management, architectural work, engineering, 
        real property acquisition and disposition, construction, and 
        renovation of any facility under the jurisdiction or for the 
        use of the Department, including site acquisition.
            ``(3) Engineering and architectural activities not charged 
        to project costs.
            ``(4) Research and development in building construction 
        technology.
    ``(f) General Operating Expenses.--Funds appropriated for General 
Operating Expenses are available for the following purposes:
            ``(1) Uniforms or allowances therefor.
            ``(2) Hire of passenger motor vehicles.
            ``(3) Reimbursement of the General Services Administration 
        for security guard services.
            ``(4) Reimbursement of the Department of Defense for the 
        cost of overseas employee mail.
            ``(5) Administration of the Service Members Occupational 
        Conversion and Training Act of 1992 (10 U.S.C. 1143 note).
    ``(g) Construction.--Funds appropriated for Construction, Major 
Projects, and for Construction, Minor Projects, are available, with 
respect to a project, for the following purposes:
            ``(1) Planning.
            ``(2) Architectural and engineering services.
            ``(3) Maintenance or guarantee period services costs 
        associated with equipment guarantees provided under the 
        project.
            ``(4) Services of claims analysts.
            ``(5) Offsite utility and storm drainage system 
        construction costs.
            ``(6) Site acquisition.
    ``(h) Construction, Minor Projects.--In addition to the purposes 
specified in subsection (g), funds appropriated for Construction, Minor 
Projects, are available for--
            ``(1) repairs to any of the nonmedical facilities under the 
        jurisdiction or for the use of the Department which are 
        necessary because of loss or damage caused by a natural 
        disaster or catastrophe; and
            ``(2) temporary measures necessary to prevent or to 
        minimize further loss by such causes.''.
    (b) Definition.--(1) Chapter 1 is amended by adding at the end the 
following new section:
``Sec. 117. Definition of cost of direct and guaranteed loans
    ``For the purpose of any provision of law appropriating funds to 
the Department for the cost of direct or guaranteed loans, the cost of 
any such loan, including the cost of modifying any such loan, shall be 
as defined in section 502 of the Congressional Budget Act of 1974 (2 
U.S.C. 661a).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``117. Definition of cost of direct and guaranteed loans.''.
    (c) Effective Date.--Subsections (c) through (h) of section 313 of 
title 38, United States Code, as added by subsection (a), and section 
117 of such title, as added by subsection (b), shall take effect with 
respect to funds appropriated for fiscal year 2003.
                                 &lt;all&gt;

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