[House Report 115-134]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 115-134
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VETERANS' COMPENSATION COST-OF-LIVING ADJUSTMENT ACT OF 2017
_______
May 19, 2017.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Roe of Tennessee, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 1329]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 1329) to increase, effective as of December 1,
2017, the rates of compensation for veterans with service-
connected disabilities and the rates of dependency and
indemnity compensation for the survivors of certain disabled
veterans, to amend title 38, United States Code, to improve the
United States Court of Appeals for Veterans Claims, to improve
the processing of claims by the Secretary of Veterans Affairs,
and for other purposes, having considered the same, report
favorably thereon with amendments and recommend that the bill
as amended do pass.
CONTENTS
Page
Amendment....................................................... 2
Purpose and Summary............................................. 2
Background and Need for Legislation............................. 3
Hearings........................................................ 3
Subcommittee Consideration...................................... 4
Committee Consideration......................................... 4
Committee Votes................................................. 4
Committee Oversight Findings.................................... 4
Statement of General Performance Goals and Objectives........... 5
New Budget Authority, Entitlement Authority, and Tax
Expenditures................................................... 5
Earmarks and Tax and Tariff Benefits............................ 5
Committee Cost Estimate......................................... 5
Congressional Budget Office Estimate............................ 5
Federal Mandates Statement...................................... 7
Advisory Committee Statement.................................... 7
Constitutional Authority Statement.............................. 8
Applicability to Legislative Branch............................. 8
Statement on Duplication of Federal Programs.................... 8
Disclosure of Directed Rulemaking............................... 8
Section-by-Section Analysis of the Legislation.................. 8
Changes in Existing Law Made by the Bill as Reported............ 9
AMENDMENT
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veterans' Compensation Cost-of-Living
Adjustment Act of 2017''.
SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION AND DEPENDENCY AND
INDEMNITY COMPENSATION.
(a) Rate Adjustment.--Effective on December 1, 2017, the Secretary of
Veterans Affairs shall increase, in accordance with subsection (c), the
dollar amounts in effect on November 30, 2017, for the payment of
disability compensation and dependency and indemnity compensation under
the provisions specified in subsection (b).
(b) Amounts To Be Increased.--The dollar amounts to be increased
pursuant to subsection (a) are the following:
(1) Wartime disability compensation.--Each of the dollar
amounts under section 1114 of title 38, United States Code.
(2) Additional compensation for dependents.--Each of the
dollar amounts under section 1115(1) of such title.
(3) Clothing allowance.--The dollar amount under section 1162
of such title.
(4) Dependency and indemnity compensation to surviving
spouse.--Each of the dollar amounts under subsections (a)
through (d) of section 1311 of such title.
(5) Dependency and indemnity compensation to children.--Each
of the dollar amounts under sections 1313(a) and 1314 of such
title.
(c) Determination of Increase.--Each dollar amount described in
subsection (b) 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, 2017, as a result of a determination under section 215(i)
of such Act (42 U.S.C. 415(i)).
(d) Special Rule.--The Secretary of Veterans Affairs may adjust
administratively, consistent with the increases made under subsection
(a), the rates of disability compensation payable to persons under
section 10 of Public Law 85-857 (72 Stat. 1263) who have not received
compensation under chapter 11 of title 38, United States Code.
SEC. 3. PUBLICATION OF ADJUSTED RATES.
The Secretary of Veterans Affairs shall publish in the Federal
Register the amounts specified in section 2(b), as increased under that
section, not later than the date on which 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 2018.
Amend the title so as to read:
A bill to increase, effective as of December 1, 2017, the
rates of compensation for veterans with service-connected
disabilities and the rates of dependency and indemnity
compensation for the survivors of certain disabled veterans,
and for other purposes.
PURPOSE AND SUMMARY
H.R. 1329, as amended, the ``Veterans Compensation Cost of
Living Adjustment Act of 2017,'' was introduced by
Representative Mike Bost, Chairman of the Subcommittee of
Disability Assistance and Memorial Affairs, on March 2, 2017.
H.R. 1329, as amended, would as of November 30, 2017, increase
the rates of Wartime Disability Compensation, Compensation for
Dependents, Clothing Allowance, Dependency and Indemnity
Compensation to Surviving Spouse, and Dependency and Indemnity
Compensation to Children by the same percentage as the increase
in benefits provided under title II (Old Age, Survivors, and
Disability Insurance) of the Social Security Act.
BACKGROUND AND NEED FOR LEGISLATION
Veterans who are disabled as a result of their military
service are eligible to receive disability compensation. The
purpose of disability compensation is to provide relief to a
veteran who is limited in his or her earning capacity due to a
disability incurred during military service. The amount of
compensation a veteran receives varies according to the
veteran's degree of disability.
To be eligible to receive disability compensation, a
veteran must have a disability incurred or aggravated during
military service, which is not the result of willful
misconduct. Additionally, the veterans must have been
discharged under other than dishonorable conditions. The
Department of Veterans Affairs (VA) is responsible for
determining if a veteran is entitled to service-connection for
a disability.
Dependency and Indemnity Compensation (DIC) are monthly
benefits paid to surviving spouses and dependent children of
veterans who died while on active duty; or as a result of
disabilities determined by VA to be serviced-connected or were
service-connected disability rated at 100 percent for certain
periods of time prior to death. Survivors who are housebound,
require aid and attendance, or who have minor children may be
paid additional amounts. The purpose of DIC benefits authorized
under chapter 13 of title 38, U.S.C. is to provide partial
compensation to the disabled veteran's surviving dependents for
the loss in financial support due to the veteran's service-
connected death. The dependent's income and need are not
considered when VA determines a surviving spouse's or child's
entitlement because the nation, in part, assumes the legal and
moral obligation of the deceased veteran to support his or her
spouse and children.
Section 2 of H.R. 1329, as amended, would increase the
rates of Wartime Disability Compensation, Additional
Compensation for Dependents, Clothing Allowance, Dependency and
Indemnity Compensation to Surviving Spouse, and Dependency and
Indemnity Compensation to Children. Such increase in benefits
would increase to be the same percentage as the increase in
benefits provided under title II (Old Age, Survivors, and
Disability Insurance) of the Social Security Act.
Section 3 of H.R. 1329, as amended, would require the
Secretary to publish in the Federal Register the cost-of-living
as increased under section 2, not later than the date on which
the matters specified by 42 U.S.C. 415(i)(2)(D) of the Social
Security Act are required to be published during fiscal year
2017.
HEARINGS
On April 5, 2017, the Subcommittee on Disability Assistance
and Memorial Affairs conducted a legislative hearing on various
bills introduced during the 115th Congress, including H.R.
1329.
The following witnesses testified:
The Honorable Mike Bost, U.S. House of
Representatives; The Honorable Julia Brownley, U.S.
House of Representatives; The Honorable Jim Banks, U.S.
House of Representatives; The Honorable Jack Bergman,
U.S. House of Representatives; The Honorable David G.
Valadao, U.S. House of Representatives; Ms. Beth
Murphy, Director, Compensation Service, Veterans
Benefits Administration, U.S. Department of Veterans
Affairs, accompanied by Dr. Ralph L. Erickson, Chief
Consultant for Post Deployment Health Service, Veterans
Health Administration, U.S. Department of Veterans
Affairs; Ms. Patricia Watts, Director, Legislative and
Regulatory Service, National Cemetery Administration,
U.S. Department of Veterans Affairs; Mr. Zachary Hearn,
Deputy Director, Veterans Affairs and Rehabilitation
Division, The American Legion; Mr. Rick Weidman,
Executive Director, Policy and Government Affairs,
Vietnam Veterans of America; Mr. Patrick Murray,
Associate Director, National Legislative Service,
Veterans of Foreign Wars; Mr. LeRoy Acosta, Assistant
National Legislative Director, Disabled American
Veterans; and, Mr. John B. Wells, Executive Director,
Military-Veterans Advocacy Inc.
Statements for the record were submitted by:
The Honorable Timothy J. Walz, U.S. House of
Representatives and the Paralyzed Veterans of America
SUBCOMMITTEE CONSIDERATION
On April 27, 2017, the Subcommittee on Disability
Assistance and Memorial Affairs met in open markup session, a
quorum being present, and favorably forwarded to the full
Committee H.R. 1329, as amended. During consideration of H.R.
1329, the following amendment was considered and agreed to by
voice vote:
An amendment offered by Mr. Bost of Illinois that
revised the long title of the bill.
COMMITTEE CONSIDERATION
On May 17, 2017, the Full Committee met in an open markup
session, a quorum being present, and ordered H.R. 1329, as
amended, which reflected the Subcommittee Print of H.R. 1329,
reported favorably to the House of Representatives by voice
vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report the legislation and amendments
thereto. There were no recorded votes taken on amendments or in
connection with ordering H.R. 1329, as amended, reported to the
House. A motion by Ranking Member Timothy Walz of Minnesota to
report H.R. 1329, as amended, favorably to the House of
Representatives was agreed to by voice vote.
COMMITTEE OVERSIGHT FINDINGS
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee establishes the
following performance goals and objectives for this legislation
to as of December 1, 2017 increase the rates of Wartime
Disability Compensation, Compensation for Dependents, Clothing
Allowance, Dependency and Indemnity Compensation to Surviving
Spouse, and Dependency and Indemnity Compensation to Children
by the same percentage as the increase in benefits provided
under title II (Old Age, Survivors, and Disability Insurance)
of the Social Security Act.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
EARMARKS AND TAX AND TARIFF BENEFITS
H.R. 1329, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
COMMITTEE COST ESTIMATE
The Committee adopts as its own the cost estimate on H.R.
1329, as amended, prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 1329, as amended, provided by the Director of the
Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 19, 2017.
Hon. Phil Roe, M.D.,
Chairman, Committee on Veterans' Affairs,
House of Representatives Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2288, the Veterans
Appeals Improvement and Modernization Act of 2017.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Dwayne M.
Wright.
Sincerely,
Keith Hall.
Enclosure.
H.R. 2288--Veterans Appeals Improvement and Modernization Act of 2017
Summary: H.R. 2288 would modify the appeals process for
benefit claims at the Department of Veterans Affairs (VA) and
would require several reports from VA and the Government
Accountability Office (GAO). CBO estimates that implementing
H.R. 2288 would cost about $2 million over the 2017-2022
period; such spending would be subject to the availability of
appropriated funds.
Enacting the bill would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 2288 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2028.
H.R. 2288 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 2288 is shown in the following table.
The costs of this legislation fall within budget function 700
(veterans benefits and services).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------------
2017 2018 2019 2020 2021 2022 2017-2022
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INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level............ 0 1 * * * * 2
Estimated Outlays........................ 0 1 * * * * 2
----------------------------------------------------------------------------------------------------------------
Note: Annual amounts do not sum to total because of rounding; * = less than $500,000.
Basis of estimate: For this estimate, CBO assumes that H.R.
2288 will be enacted near the beginning of fiscal year 2018,
that sufficient funds will be available each year, and that
outlays will follow historical spending patterns for the
affected programs.
Appeals reform
Section 2 would direct VA to implement a new process to
handle appeals of claims for veterans' benefits. As described
below, the current system allows for repeated revisions and
resubmissions of claims while maintaining an effective date for
benefits based upon the original filing date of the claim. As a
result, VA reports that under current law final decisions on
appeals take an average of three years, with some appeals
taking more than six years. The current backlog for appeals
exceeds 470,000 claims and is growing.
The proposed changes are intended to significantly
streamline the appeal process, which would allow appeals to be
finalized in a shorter period of time and require the efforts
of fewer employees. VA reports that no additional personnel
would be required for training, modifications to information
technology, or outreach. VA also expects that the efficiencies
of the new system would allow the agency to continue processing
legacy appeals under the current system, very gradually
reducing the existing backlog, without the need for additional
employees. (Reducing the backlog in a more expedited manner
would require more employees and would have a substantial
cost.) Based on an analysis of information from VA and our
understanding of the appeals process, CBO expects that VA could
implement that change without an increase in workload.
Therefore, CBO estimates that implementing section 2 would have
no significant cost over the 2017-2022 period.
Comprehensive plan
Section 3 would require VA to create a comprehensive plan
to implement the new appeals process. That plan would include
information about the existing process, including timeliness
and the number of appeals, and would discuss how that
information would differ under the new process. VA would be
required to evaluate the potential costs for all facets of the
new appeals process as well as to provide quarterly reports on
VA's implementation of that process. The bill also would
require GAO to conduct an assessment of VA's comprehensive
plan. CBO estimates that implementing this provision would cost
about $2 million to prepare the reports over the 2017-2022
period.
Pilot program on fully developed appeals
Section 4 would grant VA the authority to implement a pilot
program for some appeals until the new appeals process could be
implemented. VA indicates that it would not use this authority;
therefore, CBO estimates that implementing section 4 would have
no budgetary effects.
VA appeals data
Section 5 would require VA to publish data monthly about
the new appeals process on their website. CBO estimates that
implementing section 5 would cost less than $500,000 over the
2017-2022 period.
Pay-As-You-Go considerations: None.
Increase in long-term direct spending and deficits: CBO
estimates that enacting H.R. 2288 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2028.
Intergovernmental and private-sector impact: H.R. 2288
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal costs: Dwayne M. Wright;
Impact on state, local, and tribal governments: Leo Lex; Impact
on the private sector: Paige Piper/Bach.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 1329, as amended, prepared by the
Director of the Congressional Budget Office pursuant to section
423 of the Unfunded Mandates Reform Act.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
1329, as amended.
CONSTITUTIONAL AUTHORITY STATEMENT
Pursuant to Article I, section 8 of the United States
Constitution, H.R. 1329, as amended, is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that H.R. 1329, as amended, does not
relate to the terms and conditions of employment or access to
public services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act of 1995.
STATEMENT ON DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 1329, as amended, establishes or reauthorizes a program
of the Federal Government known to be duplicative of another
Federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
DISCLOSURE OF DIRECTED RULEMAKING
Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017),
the Committee estimates that H.R. 1329, as amended, contains no
directed rule making that would require the Secretary to
prescribe regulations.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
Section 1 would establish the short title of the Act.
Section 2. Increase in rates of disability compensation and dependency
and indemnity compensation
Section 2 would authorize VA to increase, effective
November 30, 2017, the dollar amounts in effect for the payment
of disability compensation and dependency and indemnity
compensation.
Section 2(b) would specify the amounts that would be
increased regarding the Wartime Disability Compensation, under
section 1114 of title 38, U.S.C., the Additional Compensation
for Dependents, under section 1115(1) of title 38, U.S.C., the
Clothing Allowance, under section 1162 of title 38, U.S.C., the
Dependency and Indemnity Compensation to Surviving Spouses,
under section 1311 of title 38, U.S.C., and the Dependency and
Indemnity Compensation to Children, under sections 1313(a) and
1314 of title 38, U.S.C.
Section 2(c) would specify that each amount shall be
increased by the same percentage by which benefits are
increased under title II of the Social Security Act.\1\
---------------------------------------------------------------------------
\1\42 U.S.C. 415(i).
---------------------------------------------------------------------------
Section 2(d) would provide a special rule authorizing VA to
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, who are not in receipt of compensation payable
pursuant to chapter 11 of title 38, U.S.C.
Section 3. Publication of adjusted rates
Section 3 would require the Secretary of VA to publish in
the Federal Register the amounts specified in subsection 2(b),
as increased pursuant to 41 U.S.C. 415(i)(2)(D).
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
If enacted, this bill would make no changes in existing
law.
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