[107th Congress Public Law 330]
[From the U.S. Government Printing Office]


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[DOCID: f:publ330.107]


[[Page 2819]]

                      VETERANS BENEFITS ACT OF 2002

[[Page 116 STAT. 2820]]

Public Law 107-330
107th Congress

                                 An Act


 
  To amend title 38, United States Code, to improve authorities of the 
   Department of Veterans Affairs relating to veterans' compensation, 
 dependency and indemnity compensation, and pension benefits, education 
 benefits, housing benefits, memorial affairs benefits, life insurance 
   benefits, and certain other benefits for veterans, to improve the 
    administration of benefits for veterans, to make improvements in 
procedures relating to judicial review of veterans' claims for benefits, 
                         and for other purposes.

<<NOTE: Dec. 6, 2002 -  [S. 2237]>>     Be it enacted by the Senate and 
House of Representatives of the United States of <<NOTE: Veterans 
Benefits Act of 2002.>> America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 38 USC 101 note.>>  Short Title.--This Act may be cited 
as the ``Veterans Benefits Act of 2002''.

    (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--COMPENSATION AND BENEFITS IMPROVEMENTS

Sec. 101. Retention of CHAMPVA for surviving spouses remarrying after 
           age 55.
Sec. 102. Clarification of entitlement to special monthly compensation 
           for women veterans who have service-connected loss of breast 
           tissue.
Sec. 103. Specification of hearing loss required for compensation for 
           hearing loss in paired organs.
Sec. 104. Assessment of acoustic trauma associated with military service 
           from World War II to present.

                       TITLE II--MEMORIAL AFFAIRS

Sec. 201. Prohibition on certain additional benefits for persons 
           committing capital crimes.
Sec. 202. Procedures for disqualification of persons committing capital 
           crimes for interment or memorialization in national 
           cemeteries.
Sec. 203. Application of Department of Veterans Affairs benefit for 
           Government markers for marked graves of veterans at private 
           cemeteries to veterans dying on or after September 11, 2001.
Sec. 204. Authorization of placement of a memorial in Arlington National 
           Cemetery honoring World War II veterans who fought in the 
           Battle of the Bulge.

                        TITLE III--OTHER MATTERS

Sec. 301. Increase in aggregate annual amount available for State 
           approving agencies for administrative expenses for fiscal 
           years 2003 through 2007.
Sec. 302. Authority for Veterans' Mortgage Life Insurance to be carried 
           beyond age 70.
Sec. 303. Authority to guarantee hybrid adjustable rate mortgages.
Sec. 304. Increase in amount payable as Medal of Honor special pension.
Sec. 305. Extension of protections under the Soldiers' and Sailors' 
           Civil Relief Act of 1940 to National Guard members called to 
           active duty under title 32, United States Code.
Sec. 306. Extension of income verification authority.
Sec. 307. Fee for loan assumption.
Sec. 308. Technical and clarifying amendments.

[[Page 116 STAT. 2821]]

Sec. 309. Codification of cost-of-living adjustment provided in Public 
           Law 107-247.

                       TITLE IV--JUDICIAL MATTERS

Sec. 401. Standard for reversal by Court of Appeals for Veterans Claims 
           of erroneous finding of fact by Board of Veterans' Appeals.
Sec. 402. Review by Court of Appeals for the Federal Circuit of 
           decisions of law of Court of Appeals for Veterans Claims.
Sec. 403. Authority of Court of Appeals for Veterans Claims to award 
           fees under Equal Access to Justice Act for non-attorney 
           practitioners.

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--COMPENSATION AND BENEFITS IMPROVEMENTS

SEC. 101. RETENTION OF CHAMPVA FOR SURVIVING SPOUSES REMARRYING 
                        AFTER AGE 55.

    (a) Exception to Termination of Benefits Upon Remarriage.--Paragraph 
(2) of section 103(d) is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following:

    ``(B) The remarriage after age 55 of the surviving spouse of a 
veteran shall not bar the furnishing of benefits under section 1781 of 
this title to such person as the surviving spouse of the veteran.''.
    (b) <<NOTE: 38 USC 103 note.>>  Application for Benefits.--In the 
case of an individual who but for having remarried would be eligible for 
medical care under section 1781 of title 38, United States Code, and 
whose remarriage was before the date of the enactment of this Act and 
after the individual had attained age 55, the individual shall be 
eligible for such medical care by reason of the amendments made by 
subsection (a) only if an application for such medical care is received 
by the Secretary of Veterans Affairs during the 1-year period ending on 
the effective date specified in subsection (c).

    (c) <<NOTE: 38 USC 103 note.>>  Effective Date.--The amendments made 
by this section shall take effect on the date that is 60 days after the 
date of the enactment of this Act.
SEC. 102. CLARIFICATION OF ENTITLEMENT TO SPECIAL MONTHLY 
                        COMPENSATION FOR WOMEN VETERANS WHO HAVE 
                        SERVICE-CONNECTED LOSS OF BREAST TISSUE.

    Section 1114(k) is amended by striking ``one or both breasts 
(including loss by mastectomy)'' and inserting ``25 percent or more of 
tissue from a single breast or both breasts in combination (including 
loss by mastectomy or partial mastectomy) or has received radiation 
treatment of breast tissue''.
SEC. 103. SPECIFICATION OF HEARING LOSS REQUIRED FOR COMPENSATION 
                        FOR HEARING LOSS IN PAIRED ORGANS.

    Section 1160(a)(3) is amended--
            (1) by striking ``total deafness'' the first place it 
        appears and inserting ``deafness compensable to a degree of 10 
        percent or more''; and

[[Page 116 STAT. 2822]]

            (2) by striking ``total deafness'' the second place it 
        appears and inserting ``deafness''.
SEC. 104. ASSESSMENT <<NOTE: Deadlines.>>  OF ACOUSTIC TRAUMA 
                        ASSOCIATED WITH MILITARY SERVICE FROM 
                        WORLD WAR II TO PRESENT.

    (a) <<NOTE: Contracts.>>  Assessment by National Academy of 
Sciences.--The Secretary of Veterans Affairs shall seek to enter into an 
agreement with the National Academy of Sciences for the Academy to 
perform the activities specified in this section. The Secretary shall 
seek to enter into the agreement not later than 60 days after the date 
of the enactment of this Act.

    (b) Duties Under Agreement.--Under the agreement under subsection 
(a), the National Academy of Sciences shall do the following:
            (1) Review and assess available data on hearing loss that 
        could reasonably be expected to have been incurred by members of 
        the Armed Forces during the period from the beginning of World 
        War II to the date of the enactment of this Act.
            (2) Identify the different sources of acoustic trauma that 
        members of the Armed Forces could reasonably be expected to have 
        been exposed to during the period from the beginning of World 
        War II to the date of the enactment of this Act
            (3) Determine how much exposure to each source of acoustic 
        trauma identified under paragraph (2) is required to cause or 
        contribute to hearing loss, hearing threshold shift, or 
        tinnitus, as the case may be, and at what noise level.
            (4) Determine whether or not such hearing loss, hearing 
        threshold shift, or tinnitus, as the case may be, is--
                    (A) immediate or delayed onset;
                    (B) cumulative;
                    (C) progressive; or
                    (D) any combination of subparagraph (A), (B), and 
                (C).
            (5) Identify age, occupational history, and other factors 
        which contribute to an individual's noise-induced hearing loss.
            (6) Identify--
                    (A) the period of time at which audiometric measures 
                used by the Armed Forces became adequate to evaluate 
                individual hearing threshold shift; and
                    (B) the period of time at which hearing conservation 
                measures to prevent individual hearing threshold shift 
                were available to members of the Armed Forces, shown 
                separately for each of the Army, Navy, Air Force, Marine 
                Corps, and Coast Guard, and, for each such service, 
                shown separately for members exposed to different 
                sources of acoustic trauma identified under paragraph 
                (2).

    (c) Report.--Not later than 180 days after the date of the entry 
into the agreement referred to in subsection (a), the National Academy 
of Sciences shall submit to the Secretary a report on the activities of 
the National Academy of Sciences under the agreement, including the 
results of the activities required by subsection (b).
    (d) Report on Administration of Benefits for Hearing Loss and 
Tinnitus.--(1) Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Veterans Affairs shall submit to the 
Committees on Veterans' Affairs of the Senate and the House of 
Representatives a report on the claims submitted

[[Page 116 STAT. 2823]]

to the Secretary for disability compensation or health care for hearing 
loss or tinnitus.
    (2) The report under paragraph (1) shall include the following:
            (A) The number of decisions issued by the Secretary in each 
        of fiscal years 2000, 2001, and 2002 on claims for disability 
        compensation for hearing loss, tinnitus, or both.
            (B) Of the decisions referred to in subparagraph (A)--
                    (i) the number in which compensation was awarded, 
                and the number in which compensation was denied, set 
                forth by fiscal year; and
                    (ii) the total amount of disability compensation 
                paid on such claims during each such fiscal year.
            (C) The total cost to the Department of Veterans Affairs of 
        adjudicating the claims referred to in subparagraph (A), set 
        forth in terms of full-time employee equivalents (FTEEs).
            (D) The total number of veterans who sought treatment in 
        Department of Veterans Affairs health care facilities during 
        fiscal years specified in subparagraph (A) for hearing-related 
        disorders, set forth by the number of veterans per year.
            (E) The health care furnished to veterans referred to in 
        subparagraph (D) for hearing-related disorders, including the 
        number of veterans furnished hearing aids and the cost of 
        furnishing such hearing aids.

                       TITLE II--MEMORIAL AFFAIRS

SEC. 201. PROHIBITION ON CERTAIN ADDITIONAL BENEFITS FOR PERSONS 
                        COMMITTING CAPITAL CRIMES.

    (a) Presidential Memorial Certificate.--Section 112 is amended by 
adding at the end the following new subsection:
    ``(c) A certificate may not be furnished under the program under 
subsection (a) on behalf of a deceased person described in section 
2411(b) of this title.''.
    (b) Flag to Drape Casket.--Section 2301 is amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following new 
        subsection (g):

    ``(g) A flag may not be furnished under this section in the case of 
a person described in section 2411(b) of this title.''.
    (c) Headstone or Marker for Grave.--Section 2306 is amended by 
adding at the end the following new subsection:
    ``(g)(1) A headstone or marker may not be furnished under subsection 
(a) for the unmarked grave of a person described in section 2411(b) of 
this title.
    ``(2) A memorial headstone or marker may not be furnished under 
subsection (b) for the purpose of commemorating a person described in 
section 2411(b) of this title.
    ``(3) A marker may not be furnished under subsection (d) for the 
grave of a person described in section 2411(b) of this title.''.
    (d) <<NOTE: Applicability. 38 USC 112 note.>>  Effective Date.--The 
amendments made by this section shall apply with respect to deaths 
occurring on or after the date of the enactment of this Act.

[[Page 116 STAT. 2824]]

SEC. 202. PROCEDURES FOR DISQUALIFICATION OF PERSONS COMMITTING 
                        CAPITAL CRIMES FOR INTERMENT OR 
                        MEMORIALIZATION IN NATIONAL CEMETERIES.

    Section 2411(a)(2) is amended--
            (1) by striking ``The prohibition'' and inserting ``In the 
        case of a person described in subsection (b)(1) or (b)(2), the 
        prohibition''; and
            (2) by striking ``or finding under subsection (b)'' and 
        inserting ``referred to in subsection (b)(1) or (b)(2), as the 
        case may be,''.
SEC. 203. APPLICATION OF DEPARTMENT OF VETERANS AFFAIRS BENEFIT 
                        FOR GOVERNMENT MARKERS FOR MARKED GRAVES 
                        OF VETERANS AT PRIVATE CEMETERIES TO 
                        VETERANS DYING ON OR AFTER SEPTEMBER 11, 
                        2001.

    (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; 38 U.S.C. 2306 note) is amended by striking ``the date of the 
enactment of this Act'' and inserting ``September 11, 2001''.
    (b) <<NOTE: 38 USC 2306 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect as if included in the enactment of 
such section 502.
SEC. 204. <<NOTE: 38 USC 2409 note.>>  AUTHORIZATION OF PLACEMENT 
                        OF A MEMORIAL IN ARLINGTON NATIONAL 
                        CEMETERY HONORING WORLD WAR II VETERANS 
                        WHO FOUGHT IN THE BATTLE OF THE BULGE.

    The Secretary of the Army is authorized to place in Arlington 
National Cemetery a memorial marker honoring veterans who fought in the 
battle in the European theater of operations during World War II known 
as the Battle of the Bulge.

                        TITLE III--OTHER MATTERS

SEC. 301. INCREASE IN AGGREGATE ANNUAL AMOUNT AVAILABLE FOR STATE 
                        APPROVING AGENCIES FOR ADMINISTRATIVE 
                        EXPENSES FOR FISCAL YEARS 2003 THROUGH 
                        2007.

    The first sentence of section 3674(a)(4) is amended by inserting 
before the period at the end the following: ``, for fiscal year 2003, 
$14,000,000, for fiscal year 2004, $18,000,000, for fiscal year 2005, 
$18,000,000, for fiscal year 2006, $19,000,000, and for fiscal year 
2007, $19,000,000''.
SEC. 302. AUTHORITY FOR VETERANS' MORTGAGE LIFE INSURANCE TO BE 
                        CARRIED BEYOND AGE 70.

    Section 2106 is amended--
            (1) in subsection (a), by inserting ``age 69 or younger'' 
        after ``any eligible veteran''; and
            (2) in subsection (i), by striking paragraph (2) and 
        redesignating paragraphs (3) and (4) as paragraphs (2) and (3), 
        respectively.

[[Page 116 STAT. 2825]]

SEC. 303. AUTHORITY TO GUARANTEE HYBRID ADJUSTABLE RATE MORTGAGES.

    (a) Two-Year Demonstration Project To Guarantee Certain Adjustable 
Rate Mortgages.--Chapter 37 is amended by inserting after section 3707 
the following new section:

``Sec. 3707A. Hybrid adjustable rate mortgages

    ``(a) The Secretary shall carry out a demonstration project under 
this section during fiscal years 2004 and 2005 for the purpose of 
guaranteeing loans in a manner similar to the manner in which the 
Secretary of Housing and Urban Development insures adjustable rate 
mortgages under section 251 of the National Housing Act in accordance 
with the provisions of this section with respect to hybrid adjustable 
rate mortgages described in subsection (b).
    ``(b) Adjustable rate mortgages that are guaranteed under this 
section shall be adjustable rate mortgages (commonly referred to as 
`hybrid adjustable rate mortgages') having interest rate adjustment 
provisions that--
            ``(1) specify an initial rate of interest that is fixed for 
        a period of not less than the first three years of the mortgage 
        term;
            ``(2) provide for an initial adjustment in the rate of 
        interest by the mortgagee at the end of the period described in 
        paragraph (1); and
            ``(3) comply in such initial adjustment, and any subsequent 
        adjustment, with subsection (c).

    ``(c) Interest rate adjustment provisions of a mortgage guaranteed 
under this section shall--
            ``(1) correspond to a specified national interest rate index 
        approved by the Secretary, information on which is readily 
        accessible to mortgagors from generally available published 
        sources;
            ``(2) be made by adjusting the monthly payment on an annual 
        basis;
            ``(3) be limited, with respect to any single annual interest 
        rate adjustment, to a maximum increase or decrease of 1 
        percentage point; and
            ``(4) be limited, over the term of the mortgage, to a 
        maximum increase of 5 percentage points above the initial 
        contract interest rate.

    ``(d) <<NOTE: Standards.>>  The Secretary shall promulgate 
underwriting standards for loans guaranteed under this section, taking 
into account--
            ``(1) the status of the interest rate index referred to in 
        subsection (c)(1) and available at the time an underwriting 
        decision is made, regardless of the actual initial rate offered 
        by the lender;
            ``(2) the maximum and likely amounts of increases in 
        mortgage payments that the loans would require;
            ``(3) the underwriting standards applicable to adjustable 
        rate mortgages insured under title II of the National Housing 
        Act; and
            ``(4) such other factors as the Secretary finds appropriate.

    ``(e) The Secretary shall require that the mortgagee make available 
to the mortgagor, at the time of loan application, a written explanation 
of the features of the adjustable rate mortgage,

[[Page 116 STAT. 2826]]

including a hypothetical payment schedule that displays the maximum 
potential increases in monthly payments to the mortgagor over the first 
five years of the mortgage term.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 37 is amended by inserting after the item relating to section 
3707 the following new item:

``3707A. Hybrid adjustable rate mortgages.''.

SEC. 304. INCREASE IN AMOUNT PAYABLE AS MEDAL OF HONOR SPECIAL 
                        PENSION.

    (a) Increase in Amount.--Subsection (a) of section 1562 is amended 
by striking ``$600'' and inserting ``$1,000, as adjusted from time to 
time under subsection (e)''.
    (b) Annual Adjustment.--That section is further amended by adding at 
the end the following new subsection:
    ``(e) <<NOTE: Effective date.>>  Effective as of December 1 each 
year, the Secretary shall increase the amount of monthly special pension 
payable under subsection (a) as of November 30 of such year 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 of such year as a result of a 
determination under section 215(i) of that Act (42 U.S.C. 415(i)).''.

    (c) Payment of Lump Sum for Period Between Act of Valor and 
Commencement of Special Pension.--That section is further amended by 
adding after subsection (e), as added by subsection (b) of this section, 
the following new subsection:
    ``(f)(1) The Secretary shall pay, in a lump sum, to each person who 
is in receipt of special pension payable under this section an amount 
equal to the total amount of special pension that the person would have 
received during the period beginning on the first day of the first month 
beginning after the date of the act for which the person was awarded the 
Medal of Honor and ending on the last day of the month preceding the 
month in which the person's special pension in fact commenced.
    ``(2) For each month of a period referred to in paragraph (1), the 
amount of special pension payable to a person shall be determined using 
the rate of special pension that was in effect for such month, and shall 
be payable only if the person would have been entitled to payment of 
special pension for such month under laws for eligibility for special 
pension (with the exception of the eligibility law requiring a person to 
have been awarded a Medal of Honor) in effect at the beginning of such 
month.''.
    (d) <<NOTE: 38 USC 1562 note.>>  Effective Date.--(1) Except as 
provided in paragraph (2), the amendments made by subsections (a) and 
(b) shall take effect on September 1, 2003. No payment may be made 
pursuant to subsection (f) of section 1562 of title 38, United States 
Code, as added by subsection (c) of this section, before October 1, 
2003.

    (2) The Secretary of Veterans Affairs shall not make any adjustment 
under subsection (e) of section 1562 of title 38, United States Code, as 
added by subsection (b) of this section, in 2003.
SEC. 305. EXTENSION OF PROTECTIONS UNDER THE SOLDIERS' AND 
                        SAILORS' CIVIL RELIEF ACT OF 1940 TO 
                        NATIONAL GUARD MEMBERS CALLED TO ACTIVE 
                        DUTY UNDER TITLE 32, UNITED STATES CODE.

    Section 101(1) of the Soldiers' and Sailors' Civil Relief Act of 
1940 (50 U.S.C. App. 511(1)) is amended--

[[Page 116 STAT. 2827]]

            (1) in the first sentence--
                    (A) by striking ``and all'' and inserting ``all''; 
                and
                    (B) by inserting before the period the following: 
                ``, and all members of the National Guard on service 
                described in the following sentence''; and
            (2) in the second sentence, by inserting before the period 
        the following: ``, and, in the case of a member of the National 
        Guard, shall include service under a call to active service 
        authorized by the President or the Secretary of Defense for a 
        period of more than 30 consecutive days under section 502(f) of 
        title 32, United States Code, for purposes of responding to a 
        national emergency declared by the President and supported by 
        Federal funds''.

SEC. 306. EXTENSION OF INCOME VERIFICATION AUTHORITY.

    Section 6103(l)(7)(D) <<NOTE: 26 USC 6103.>>  of the Internal 
Revenue Code of 1986 is amended by striking ``September 30, 2003'' in 
the second sentence after clause (ix) and inserting ``September 30, 
2008''.

SEC. 307. FEE FOR LOAN ASSUMPTION. <<NOTE: 38 USC 3729 note.>> 

    (a) <<NOTE: Applicability.>>  In General.--For the period described 
in subsection (b), the Secretary of Veterans Affairs shall apply section 
3729(b)(2)(I) of title 38, United States Code, by substituting ``1.00'' 
for ``0.50'' each place it appears.

    (b) Period Described.--The period referred to in subsection (a) is 
the period that begins on the date that is 7 days after the date of the 
enactment of this Act and ends on September 30, 2003.

SEC. 308. TECHNICAL AND CLARIFYING AMENDMENTS.

    (a) Eligibility of Certain Additional Vietnam Era Veterans for 
Education Benefits.--Section 3011(a)(1)(C)(ii) is amended by striking 
``on or''.
    (b) Accelerated Payment of Assistance for Education Leading to 
Employment in High Technology Industry.--(1) Subsection (b)(1) of 
section 3014A is amended by striking ``employment in a high technology 
industry'' and inserting ``employment in a high technology occupation in 
a high technology industry''.
    (2)(A) The heading for section 3014A is amended to read as follows:

``Sec. 3014A. Accelerated payment of basic educational assistance for 
                        education leading to employment in high 
                        technology occupation in high technology 
                        industry''.

    (B) The table of sections at the beginning of chapter 30 is amended 
by striking the item relating to section 3014A and inserting the 
following new item:

``3014A. Accelerated payment of basic educational assistance for 
           education leading to employment in high technology occupation 
           in high technology industry.''.

    (c) Source of Funds for Increased Usage of Montgomery GI Bill 
Entitlement Under Entitlement Transfer Authority.--(1) Section 3035(b) 
is amended--
            (A) in paragraph (1), by striking ``paragraphs (2) and (3) 
        of this subsection,'' and inserting ``paragraphs (2), (3), and 
        (4),''; and
            (B) by adding at the end the following new paragraph:

[[Page 116 STAT. 2828]]

    ``(4) Payments attributable to the increased usage of benefits as a 
result of transfers of entitlement to basic educational assistance under 
section 3020 of this title shall be made from the Department of Defense 
Education Benefits Fund established under section 2006 of title 10 or 
from appropriations made to the Department of Transportation, as 
appropriate.''.
    (2) <<NOTE: Effective date. 38 USC 3035 note.>>  The amendments made 
by this subsection shall take effect as if included in the enactment of 
the National Defense Authorization Act for Fiscal Year 2002 (Public Law 
107-107), to which such amendments relate.

    (d) Licensing or Certification Tests.--Section 3689(c)(1)(B) is 
amended by striking ``the test'' and inserting ``such test, or a test to 
certify or license in a similar or related occupation,''.
    (e) Period of Eligibility for Survivors' and Dependents' Assistance 
Education Benefits.--(1) Section 3512(a) is amended--
            (A) in paragraph (3)--
                    (i) by striking ``paragraph (4)'' in the matter 
                preceding subparagraph (A) and inserting ``paragraph (4) 
                or (5)''; and
                    (ii) by striking ``subsection (d)'' in subparagraph 
                (C)(i) and inserting ``subsection (d), or any date 
                between the two dates described in subsection (d)'';
            (B) by redesignating paragraphs (4), (5), (6), and (7) as 
        paragraphs (5), (6), (7), and (8), respectively;
            (C) by inserting after paragraph (3) the following new 
        paragraph (4):
            ``(4) if the person otherwise eligible under paragraph (3) 
        fails to elect a beginning date of entitlement in accordance 
        with that paragraph, the beginning date of the person's 
        entitlement shall be the date of the Secretary's decision that 
        the parent has a service-connected total disability permanent in 
        nature, or that the parent's death was service-connected, 
        whichever is applicable;''; and
            (D) in paragraph (6), as so redesignated, by striking 
        ``paragraph (4)'' and inserting ``paragraph (5)''.

    (2) <<NOTE: Effective date. 38 USC 3512 note.>>  The amendments made 
by this subsection shall take effect November 1, 2000.

    (f) Loan Fees.--(1) Section 3703(e)(2)(A) is amended by striking 
``3729(b)'' and inserting ``3729(b)(2)(I)''.
    (2) <<NOTE: Effective date. 38 USC 3703 note.>>  The amendment made 
by paragraph (1) shall take effect as if included in the enactment of 
section 402 of the Veterans Benefits and Health Care Improvement Act of 
2000 (Public Law 106-419; 114 Stat. 1861).

    (g) Additional Miscellaneous Technical Amendments to Title 38, 
United States Code.--(1)(A) The tables of chapters preceding part I and 
at the beginning of part IV are each amended by striking ``5101'' in the 
item relating to chapter 51 and inserting ``5100''.
    (B) The table of parts preceding part I is amended by striking 
``5101'' in the item relating to part IV and inserting ``5100''.
    (2) Section 107(d)(2) is amended by striking ``the date of the 
enactment of this subsection'' and inserting ``November 1, 2000,''.
    (3) Section 1701(10)(A) is amended by striking ``the date of the 
enactment of the Veterans' Millennium Health Care and Benefits Act'' and 
inserting ``November 30, 1999,''.
    (4) Section 1705(c)(1) is amended by striking ``Effective on October 
1, 1998, the Secretary'' and inserting ``The Secretary''.

[[Page 116 STAT. 2829]]

    (5) Section 1707(a) is amended by inserting ``(42 U.S.C. 14401 et 
seq.)'' before the period at the end.
    (6) Section 1710(e)(1)(D) is amended by striking ``the date of the 
enactment of this subparagraph'' and inserting ``November 11, 1998''.
    (7) Section 1729B(b) is amended by striking ``the date of the 
enactment of this section'' and inserting ``November 30, 1999,''.
    (8) Section 1781(d) is amended--
            (A) in paragraph (1)(B)(i), by striking ``as of the date'' 
        and all that follows through ``of 2001'' and inserting ``as of 
        June 5, 2001''; and
            (B) in paragraph (4), by striking ``paragraph'' and 
        inserting ``subsection''.

    (9) Section 3018C(e)(2)(B) is amended by striking the comma after 
``April''.
    (10) Section 3031(a)(3) is amended by striking ``the date of the 
enactment of this paragraph'' and inserting ``December 27, 2001''.
    (11) Section 3485(a)(4) is amended in subparagraphs (A), (C), and 
(F), by striking ``the five-year period beginning on the date of the 
enactment of the Veterans Education and Benefits Expansion Act of 2001'' 
and inserting ``the period preceding December 27, 2006''.
    (12) Section 3734(b)(2) is amended--
            (A) by striking subparagraph (B); and
            (B) by redesignating subparagraphs (C), (D), (E), and (F) as 
        subparagraphs (B), (C), (D), and (E), respectively.

    (13) Section 7315(a) is amended by inserting ``Veterans Health'' in 
the first sentence after ``in the''.
    (h) Public Law 107-103.--Effective <<NOTE: Effective date.>>  as of 
December 27, 2001, and as if included therein as originally enacted, 
section 103(c) of the Veterans Education and Benefits Expansion Act of 
2001 (Public Law 107-103; 115 Stat. 979) <<NOTE: 38 USC 3103.>>  is 
amended by inserting closing quotation marks at the end of the text 
inserted by the amendment made by paragraph (2).

    (i) Public Law 102-86.--Section 403(e) of the Veterans' Benefits 
Programs Improvement Act of 1991 (Public Law 102-86; 105 Stat. 
424) <<NOTE: 38 USC 2400 note.>>  is amended by striking ``section 321'' 
and all that follows through ``and 484)'' and inserting ``subchapter II 
of chapter 5 of title 40, United States Code, sections 541 through 555 
and 1302 of title 40, United States Code''.
SEC. 309. CODIFICATION OF COST-OF-LIVING ADJUSTMENT PROVIDED IN 
                        PUBLIC LAW 107-247.

    (a) Veterans' Disability Compensation.--Section 1114 is amended--
            (1) by striking ``$103'' in subsection (a) and inserting 
        ``$104'';
            (2) by striking ``$199'' in subsection (b) and inserting 
        ``$201'';
            (3) by striking ``$306'' in subsection (c) and inserting 
        ``$310'';
            (4) by striking ``$439'' in subsection (d) and inserting 
        ``$445'';
            (5) by striking ``$625'' in subsection (e) and inserting 
        ``$633'';
            (6) by striking ``$790'' in subsection (f) and inserting 
        ``$801'';
            (7) by striking ``$995'' in subsection (g) and inserting 
        ``$1,008'';
            (8) by striking ``$1,155'' in subsection (h) and inserting 
        ``$1,171'';

[[Page 116 STAT. 2830]]

            (9) by striking ``$1,299'' in subsection (i) and inserting 
        ``$1,317'';
            (10) by striking ``$2,163'' in subsection (j) and inserting 
        ``$2,193'';
            (11) in subsection (k)--
                    (A) by striking ``$80'' both places it appears and 
                inserting ``$81''; and
                    (B) by striking ``$2,691'' and ``$3,775'' and 
                inserting ``$2,728'' and ``$3,827'', respectively;
            (12) by striking ``$2,691'' in subsection (l) and inserting 
        ``$2,728'';
            (13) by striking ``$2,969'' in subsection (m) and inserting 
        ``$3,010'';
            (14) by striking ``$3,378'' in subsection (n) and inserting 
        ``$3,425'';
            (15) by striking ``$3,775'' each place it appears in 
        subsections (o) and (p) and inserting ``$3,827'';
            (16) by striking ``$1,621'' and ``$2,413'' in subsection (r) 
        and inserting ``$1,643'' and ``$2,446'', respectively; and
            (17) by striking ``$2,422'' in subsection (s) and inserting 
        ``$2,455''.

    (b) Additional Compensation for Dependents.--Section 1115(1) is 
amended--
            (1) by striking ``$124'' in subparagraph (A) and inserting 
        ``$125'';
            (2) by striking ``$213'' in subparagraph (B) and inserting 
        ``$215'';
            (3) by striking ``$84'' in subparagraph (C) and inserting 
        ``$85'';
            (4) by striking ``$100'' in subparagraph (D) and inserting 
        ``$101'';
            (5) by striking ``$234'' in subparagraph (E) and inserting 
        ``$237''; and
            (6) by striking ``$196'' in subparagraph (F) and inserting 
        ``$198''.

    (c) Clothing Allowance for Certain Disabled Veterans.--Section 1162 
is amended by striking ``$580'' and inserting ``$588''.
    (d) Dependency and Indemnity Compensation for Surviving Spouses.--
(1) Section 1311(a) is amended--
            (A) by striking ``$935'' in paragraph (1) and inserting 
        ``$948''; and
            (B) by striking ``$202'' in paragraph (2) and inserting 
        ``$204''.

[[Page 116 STAT. 2831]]

    (2) The table in section 1311(a)(3) is amended to read as follows:
      

                                   Monthly                       Monthly
``Pay grade                           rate  Pay grade               rate
    E-1........................       $948      W-4..........     $1,134
    E-2........................        948      O-1..........      1,001
    E-3........................        948      O-2..........      1,035
    E-4........................        948      O-3..........      1,107
    E-5........................        948      O-4..........      1,171
    E-6........................        948      O-5..........      1,289
    E-7........................        980      O-6..........      1,453
    E-8........................      1,035      O-7..........      1,570
    E-9........................   \1\1,080      O-8..........      1,722
    W-1........................      1,001      O-9..........      1,843
    W-2........................      1,042      O-10.........  \2\ 2,021
    W-3........................      1,072
 
``\1\If the veteran served as sergeant major of the Army, senior
  enlisted advisor of the Navy, chief master sergeant of the Air Force,
  sergeant major of the Marine Corps, or master chief petty officer of
  the Coast Guard, at the applicable time designated by section 1302 of
  this title, the surviving spouse's rate shall be $1,165.
``\2\If the veteran served as Chairman or Vice-Chairman of the Joint
  Chiefs of Staff, Chief of Staff of the Army, Chief of Naval
  Operations, Chief of Staff of the Air Force, Commandant of the Marine
  Corps, or Commandant of the Coast Guard, at the applicable time
  designated by section 1302 of this title, the surviving spouse's rate
  shall be $2,168.''.

  

    (3) Section 1311(b) is amended by striking ``$234'' and inserting 
``$237''.
    (4) Section 1311(c) is amended by striking ``$234'' and inserting 
``$237''.
    (5) Section 1311(d) is amended by striking ``$112'' and inserting 
``$113''.
    (e) Dependency and Indemnity Compensation for Children.--(1) Section 
1313(a) is amended--
            (A) by striking ``$397'' in paragraph (1) and inserting 
        ``$402'';
            (B) by striking ``$571'' in paragraph (2) and inserting 
        ``$578'';
            (C) by striking ``$742'' in paragraph (3) and inserting 
        ``$752''; and
            (D) by striking ``$742'' and ``$143'' in paragraph (4) and 
        inserting ``$752'' and ``$145'', respectively.

    (2) Section 1314 is amended--
            (A) by striking ``$234'' in subsection (a) and inserting 
        ``$237'';
            (B) by striking ``$397'' in subsection (b) and inserting 
        ``$402''; and
            (C) by striking ``$199'' in subsection (c) and inserting 
        ``$201''.

[[Page 116 STAT. 2832]]

                       TITLE IV--JUDICIAL MATTERS

SEC. 401. STANDARD FOR REVERSAL BY COURT OF APPEALS FOR VETERANS 
                        CLAIMS OF ERRONEOUS FINDING OF FACT BY 
                        BOARD OF VETERANS' APPEALS.

    (a) Standard for Reversal.--Paragraph (4) of subsection (a) of 
section 7261 <<NOTE: 38 USC 7261.>>  is amended--
            (1) by inserting ``adverse to the claimant'' after 
        ``material fact''; and
            (2) by inserting ``or reverse'' after ``and set aside''.

    (b) Requirements for Review.--Subsection (b) of that section is 
amended to read as follows:
    ``(b) In making the determinations under subsection (a), the Court 
shall review the record of proceedings before the Secretary and the 
Board of Veterans' Appeals pursuant to section 7252(b) of this title and 
shall--
            ``(1) take due account of the Secretary's application of 
        section 5107(b) of this title; and
            ``(2) take due account of the rule of prejudicial error.''.

    (c) <<NOTE: Effective date. 38 USC 7261 note.>>  Applicability.--(1) 
Except as provided in paragraph (2), the amendments made by this section 
shall take effect on the date of the enactment of this Act.

    (2) The amendments made by this section shall apply with respect to 
any case pending for decision before the United States Court of Appeals 
for Veterans Claims other than a case in which a decision has been 
entered before the date of the enactment of this Act.
SEC. 402. REVIEW BY COURT OF APPEALS FOR THE FEDERAL CIRCUIT OF 
                        DECISIONS OF LAW OF COURT OF APPEALS FOR 
                        VETERANS CLAIMS.

    (a) Review.--Section 7292(a) is amended by inserting ``a decision of 
the Court on a rule of law or of'' in the first sentence after ``the 
validity of''.
    (b) <<NOTE: 38 USC 7292 note.>>  Applicability.--The amendment made 
by subsection (a) shall apply with respect to any appeal--
            (1) filed with the United States Court of Appeals for the 
        Federal Circuit on or after the date of the enactment of this 
        Act; or
            (2) pending with the United States Court of Appeals for the 
        Federal Circuit as of the date of the enactment of this Act in 
        which a decision has not been rendered as of that date.

[[Page 116 STAT. 2833]]

SEC. 403. AUTHORITY <<NOTE: 28 USC 2412 note.>>  OF COURT OF 
                        APPEALS FOR VETERANS CLAIMS TO AWARD FEES 
                        UNDER EQUAL ACCESS TO JUSTICE ACT FOR NON-
                        ATTORNEY PRACTITIONERS.

    The authority of the United States Court of Appeals for Veterans 
Claims to award reasonable fees and expenses of attorneys under section 
2412(d) of title 28, United States Code, shall include authority to 
award fees and expenses, in an amount determined appropriate by the 
United States Court of Appeals for Veterans Claims, of individuals 
admitted to practice before the Court as non-attorney practitioners 
under subsection (b) or (c) of Rule 46 of the Rules of Practice and 
Procedure of the United States Court of Appeals for Veterans Claims.

    Approved December 6, 2002.

LEGISLATIVE HISTORY--S. 2237:
---------------------------------------------------------------------------

SENATE REPORTS: No. 107-234 (Comm. on Veterans' Affairs).
CONGRESSIONAL RECORD, Vol. 148 (2002):
            Sept. 26, considered and passed Senate.
            Nov. 14, considered and passed House, amended.
            Nov. 15, Senate concurred in House amendments.

                                  <all>