[House Report 118-360]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2nd Session } { 118-360
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VETERANS ECONOMIC OPPORTUNITY AND TRANSITION
ADMINISTRATION ACT
_______
January 29, 2024.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Bost, from the Committee on Veterans' Affairs, submitted the
following
R E P O R T
[To accompany H.R. 3738]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 3738) to amend title 38, United States Code, to
establish in the Department of Veterans Affairs the Veterans
Economic Opportunity and Transition Administration, and for
other purposes, having considered the same, reports favorably
thereon with an amendment and recommends that the bill as
amended do pass.
CONTENTS
Page
Amendment........................................................ 1
Purpose and Summary.............................................. 4
Background and Need for Legislation.............................. 5
Hearings......................................................... 6
Subcommittee Consideration....................................... 7
Committee Consideration.......................................... 7
Committee Votes.................................................. 7
Committee Oversight Findings..................................... 7
Statement of General Performance Goals and Objectives............ 7
Earmarks and Tax and Tariff Benefits............................. 8
Committee Cost Estimate.......................................... 8
Budget Authority and Congressional Budget Office Estimate........ 8
Federal Mandates Statement....................................... 10
Advisory Committee Statement..................................... 10
Applicability to Legislative Branch.............................. 10
Statement on Duplication of Federal Programs..................... 11
Section-by-Section Analysis of the Legislation................... 11
Changes in Existing Law Made by the Bill as Reported............. 12
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veterans Economic Opportunity and
Transition Administration Act''.
SEC. 2. ESTABLISHMENT OF VETERANS ECONOMIC OPPORTUNITY AND TRANSITION
ADMINISTRATION.
(a) Veterans Economic Opportunity and Transition Administration.--
(1) In general.--Part V of title 38, United States Code, is
amended by adding at the end the following new chapter:
``CHAPTER 80--VETERANS ECONOMIC OPPORTUNITY AND TRANSITION
ADMINISTRATION
``Sec.
``8001. Organization of Administration.
``8002. Functions of Administration.
``8003. Annual report to Congress.
``Sec. 8001. Organization of Administration
``(a) Veterans Economic Opportunity and Transition Administration.--
There is in the Department of Veterans Affairs a Veterans Economic
Opportunity and Transition Administration. The primary function of the
Veterans Economic Opportunity and Transition Administration is the
administration of the programs of the Department that provide
assistance related to economic opportunity to veterans and their
dependents and survivors.
``(b) Under Secretary for Economic Opportunity and Transition.--The
Veterans Economic Opportunity and Transition Administration is under
the Under Secretary for Veterans Economic Opportunity and Transition,
who is directly responsible to the Secretary for the operations of the
Administration.
``Sec. 8002. Functions of Administration
``The Veterans Economic Opportunity and Transition Administration is
responsible for the administration of the following programs of the
Department:
``(1) Vocational rehabilitation and employment programs.
``(2) Educational assistance programs.
``(3) Veterans' housing loan and related programs.
``(4) The Transition Assistance Program under section 1144 of
title 10.
``(5) Any other program of the Department that the Secretary
determines appropriate.
``Sec. 8003. Annual report to Congress
``The Secretary shall include in the annual report to the Congress
required by section 529 of this title a report on the programs
administered by the Under Secretary for Veterans Economic Opportunity
and Transition. Each such report shall include the following with
respect to each such program during the fiscal year covered by that
report:
``(1) The number of claims received.
``(2) The number of claims decided.
``(3) The average processing time for a claim.
``(4) The number of successful outcomes (as determined by the
Secretary).
``(5) The number of full-time equivalent employees.
``(6) The amounts expended for information technology.''.
(2) Clerical amendments.--The tables of chapters at the
beginning of title 38, United States Code, and of part V of
title 38, United States Code, are each amended by inserting
after the item relating to chapter 79 the following new item:
``80. Veterans Economic Opportunity and Transition 8001''.
Administration.
(b) Effective Date.--Chapter 80 of title 38, United States Code, as
added by subsection (a), shall take effect on October 1, 2024.
(c) Full-Time Employees.--For fiscal years 2024 and 2025, the total
number of full-time equivalent employees authorized for the Veterans
Benefits Administration and the Veterans Economic Opportunity and
Transition Administration, as established under chapter 80 of title 38,
United States Code, as added by subsection (a), may not exceed--
(1) 34,228 in fiscal year 2024; and
(2) 35,417 in fiscal year 2025.
(d) Labor Rights.--Any labor rights, inclusion in the bargaining
unit, and collective bargaining agreement that affects an employee of
the Department of Veterans Affairs who is transferred to the Veterans
Economic Opportunity and Transition Administration, as established
under chapter 80 of title 38, United States Code, as added by
subsection (a), shall apply in the same manner to such employee after
such transfer.
SEC. 3. UNDER SECRETARY FOR VETERANS ECONOMIC OPPORTUNITY AND
TRANSITION.
(a) Under Secretary.--
(1) In general.--Chapter 3 of title 38, United States Code,
is amended by inserting after section 306 the following new
section:
``Sec. 306A. Under Secretary for Veterans Economic Opportunity and
Transition
``(a) Under Secretary.--There is in the Department an Under Secretary
for Veterans Economic Opportunity and Transition, who is appointed by
the President, by and with the advice and consent of the Senate. The
Under Secretary for Veterans Economic Opportunity and Transition shall
be appointed without regard to political affiliation or activity and
solely on the basis of demonstrated ability in--
``(1) information technology; and
``(2) the administration of programs within the Veterans
Economic Opportunity and Transition Administration or programs
of similar content and scope.
``(b) Responsibilities.--The Under Secretary for Veterans Economic
Opportunity and Transition is the head of, and is directly responsible
to the Secretary for the operations of, the Veterans Economic
Opportunity and Transition Administration.
``(c) Vacancies.--(1) Whenever a vacancy in the position of Under
Secretary for Veterans Economic Opportunity and Transition occurs or is
anticipated, the Secretary shall establish a commission to recommend
individuals to the President for appointment to the position.
``(2) A commission established under this subsection shall be
composed of the following members appointed by the Secretary:
``(A) Three persons representing education and training,
vocational rehabilitation, employment, real estate, mortgage
finance and related industries, and survivor benefits
activities affected by the Veterans Economic Opportunity and
Transition Administration.
``(B) Two persons representing veterans served by the
Veterans Economic Opportunity and Transition Administration.
``(C) Two persons who have experience in the management of
private sector benefits programs of similar content and scope
to the economic opportunity and transition programs of the
Department.
``(D) The Deputy Secretary of Veterans Affairs.
``(E) The chairman of the Veterans' Advisory Committee on
Education formed under section 3692 of this title.
``(F) One person who has held the position of Under Secretary
for Veterans Economic Opportunity and Transition, if the
Secretary determines that it is desirable for such person to be
a member of the commission.
``(3) A commission established under this subsection shall recommend
at least three individuals for appointment to the position of Under
Secretary for Veterans Economic Opportunity and Transition. The
commission shall submit all recommendations to the Secretary. The
Secretary shall forward the recommendations to the President and the
Committees on Veterans' Affairs of the Senate and House of
Representatives with any comments the Secretary considers appropriate.
Thereafter, the President may request the commission to recommend
additional individuals for appointment.
``(4) The Assistant Secretary or Deputy Assistant Secretary of
Veterans Affairs who performs personnel management and labor relations
functions shall serve as the executive secretary of a commission
established under this subsection.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 306 the following new item:
``306A. Under Secretary for Veterans Economic Opportunity and
Transition.''.
(b) Conforming Amendments.--Title 38, United States Code, is further
amended--
(1) in section 306(c)(2), by striking subparagraphs (A) and
(E) and redesignating subparagraphs (B), (C), (D), and (F), as
subparagraphs (A) through (D), respectively;
(2) in section 317(d)(2), by inserting after ``Under
Secretary for Benefits,'' the following: ``the Under Secretary
for Veterans Economic Opportunity and Transition,'';
(3) in section 318(d)(2), by inserting after ``Under
Secretary for Benefits,'' the following: ``the Under Secretary
for Veterans Economic Opportunity and Transition,'';
(4) in section 516(e)(2)(C), by striking ``Health and the
Under Secretary for Benefits'' and inserting ``Health, the
Under Secretary for Benefits, and the Under Secretary for
Veterans Economic Opportunity and Transition'';
(5) in section 541(a)(2)(B), by striking ``Health and the
Under Secretary for Benefits'' and inserting ``Health, the
Under Secretary for Benefits, and the Under Secretary for
Veterans Economic Opportunity and Transition'';
(6) in section 542(a)(2)(B)(iii), by striking ``Health and
the Under Secretary for Benefits'' and inserting ``Health, the
Under Secretary for Benefits, and the Under Secretary for
Veterans Economic Opportunity and Transition'';
(7) in section 544(a)(2)(B)(vi), by striking ``Health and the
Under Secretary for Benefits'' and inserting ``Health, the
Under Secretary for Benefits, and the Under Secretary for
Veterans Economic Opportunity and Transition'';
(8) in section 709(c)(2)(A), by inserting after ``Under
Secretary for Benefits,'' the following: ``the Under Secretary
for Veterans Economic Opportunity and Transition,'';
(9) in section 7701(a), by inserting after ``assistance'' the
following: ``, other than assistance related to Economic
Opportunity and Transition,''; and
(10) in section 7703, by striking paragraphs (2) and (3) and
redesignating paragraphs (4) and (5) as paragraphs (2) and (3),
respectively.
(c) Effective Date.--Section 306A of title 38, United States Code, as
added by subsection (a), and the amendments made by this section, shall
take effect on October 1, 2024.
SEC. 4. TRANSFER OF SERVICES.
(a) Report to Congress.--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 House
of Representatives a report on the progress toward establishing the
Veterans Economic Opportunity and Transition Administration, as
established under section 8001 of title 38, United States Code, as
added by section 2, and the transition of the provision of services to
veterans by such Administration.
(b) Certification.--The Secretary of Veterans Affairs may not
transfer the function of providing any services to veterans to the
Veterans Economic Opportunity and Transition Administration, as
established under section 8001 of title 38, United States Code, as
added by section 2, until the Secretary submits to the Committees on
Veterans' Affairs of the Senate and House of Representatives
certification that--
(1) the transition of the provision of services to such
Administration will not negatively affect the provision of such
services to veterans; and
(2) such services are ready to be transferred.
(c) Deadline for Certification.--The Secretary shall submit to the
Committees on Veterans' Affairs of the Senate and House of
Representatives the certification required by subsection (b)--
(1) no earlier than April 1, 2024; and
(2) no later than September 1, 2024.
(d) Failure To Certify.--If the Secretary fails to submit the
certification required by subsection (b) by the date specified in
subsection (c)(2), the Secretary shall submit to the Committees on
Veterans' Affairs of the Senate and House of Representatives a report
that includes--
(1) the reason why the certification was not made by such
date; and
(2) the estimated date when the certification will be made.
SEC. 5. MODIFICATION OF CERTAIN HOUSING LOAN FEES.
The loan fee table in section 3729(b)(2) of title 38, United States
Code, is amended by striking ``November 15, 2031'' each place it
appears and inserting ``November 30, 2031''.
Purpose and Summary
H.R. 3738, the ``Veterans Economic Opportunity and
Transition Administration Act,'' was introduced by Rep. Brad
Wenstrup of Ohio on May 25, 2023. The bill, as amended, would
create another administration within the Department of Veterans
Affairs (VA) to provide support and assistance related to
economic opportunities for veterans, their dependents, and
survivors. Veterans' rehabilitation and employment programs,
educational assistance programs, the Transition Assistance
Program, and veterans home loan programs would receive more
focused attention and be managed more efficiently under the new
administration and a new Under Secretary.
The bill would also provide an offset for the cost of these
changes by extending current rates for VA home loan funding
fees.
Background and Need for Legislation
Section 1: Short Title
This Act may be cited as the ``Veterans Economic
Opportunity and Transition Administration Act.''
Section 2: Establishment of Veteran Economic Opportunity and Transition
Administration
This section would reorganize programs at VA to provide
more support and attention to the missions and programs within
VA that promote economic opportunities for veterans.
Specifically, this section would establish a fourth
administration, the Veterans Economic Opportunity, and
Transition Administration, within the VA. This administration
would oversee vocational rehabilitation programs, educational
assistance programs, veterans' housing loans and related
programs, the Transition Assistance Program, and any other
programs deemed appropriate by the Secretary.
VA would report annually to Congress on the number of
claims received, the number of claims decided, the average
processing time for a claim, the number of successful outcomes,
the number of full-time equivalent employees, and the amounts
expended for information technology. The Committee believes
this would be crucial to provide the best services to our
veterans by creating a singular administration within VA to
support their educational and employment needs and the
transitioning process. It would also increase transparency
between VA and the Committee as the Committee pursues its
oversight responsibilities. The Committee believes this would
make VA more accountable and responsive to veterans' economic
opportunity needs.
In the past, VA has failed to respond promptly to issues
related to veterans' education and employment opportunities.
VA's Education Service has increased significantly in staff
size from seventy-five to 231 over the last decade, but the
quality-of-service veterans receive and issues the Committee
must review have remained constant during the same time period.
The passage of S. 3373, Sergeant First Class Heath Robinson
Honoring our Promise to Address Comprehensive Toxics Act of
2022 has also significantly increased workload for VA employees
under VBA. Establishing a new administration that would
separate compensation and pension benefits from economic
benefits would give both parts of VBA greater accountability
without significantly increasing bureaucracy.
Section 3: Under Secretary for Veterans Economic Opportunity and
Transition
Under this section the President would appoint the
Department of Veterans Affairs Under Secretary for Veterans and
Economic Opportunity and Transition. The section would
authorize the creation of a commission to help advise the
President for this new position. The commission would include
individuals representing education and training, vocational
rehabilitation, employment, real estate, mortgages, finances,
education-related survivor benefits, and veteran liaisons
whenever there is a vacancy in the position of the Under
Secretary. The commission would make recommendations to the
Secretary and the President on individuals to fill the vacancy.
The Committee believes it is appropriate for the new
administration at VA to be headed by a politically appointed
Under Secretary.
Section 4: Transfer of Services
VA would be required to report to the Committee on
Veterans' Affairs of the House of Representatives and Senate on
the progress toward establishing the Veterans Economic
Opportunity and Transition Administration within 180 days of
enactment of this legislation. The Secretary would also be
required to certify to both Committees that the transition of
the provision of services to such Administration will not
negatively affect the provision of services to veterans and
such services are ready to be transferred. The Committee
believes that these safeguards would help ensure a smooth
transition that would not sacrifice services provided to
veterans. It is the intent of the Committee that all Veterans
Benefits Administration employees that currently work on
economic opportunity issues would be moved to the Economic
Opportunity and Transition Administration. Additionally, the
section would require an annual report on the number of claims
received, which would help evaluate these programs'
effectiveness.
Section 5: Modification of Certain Housing Loan Fees
Currently, veterans who take advantage of the VA Home Loan
Program pay a small fee that is included in their monthly
mortgage payments. This section would cover the costs of this
bill by extending the current rates for VA home loan funding
fees by a few weeks to November 30, 2031, to account for both
discretionary and mandatory costs of this legislation.
Extending the funding fee increases a veteran's monthly cost by
about $5 on top of the monthly mortgage. Disabled veterans do
not pay the funding fee and would not be affected by this
extension of the home loan fees. The Committee believes this
short-term extension of current funding fee rates is a
reasonable way to cover the costs associated with the other
sections of this bill.
Hearings
On November 2, 2023, the Subcommittee on Economic
Opportunity held a legislative hearing on H.R. 3738 and other
bills that were pending before the subcommittee.
The following witnesses testified:
Mr. Joseph Garcia, Executive Director of Education
Service, U.S. Department of Veterans Affairs; Mr. Nick
Pamperin, Executive Director Veterans Readiness and
Employment Services, U.S. Department of Veterans
Affairs; Mr. James Ruhlman, Deputy Director of
Education Services, U.S. Department of Veterans
Affairs; Ms. Margarita Devlin, Deputy Assistant
Secretary for Operations and Management, U.S.
Department of Labor; Ms. Kristina Keenan, Deputy
Director, National Legislative Service, Veterans of
Foreign Wars of the United States; Mr. Marquis
Barefield, Assistant National Legislative Director,
Disabled American Veterans; Ms. Tammy Barlet, Vice
President of Government Affairs, Student Veterans of
America; Mr. Joseph W. Wescott II, Legislative
Director, National Association of State Approving
Agencies, Inc., and Mr. Michael Hazard, Veterans in
Piping Program Manager, United Association of
Journeyman and Apprentices of the Plumbing and
Pipefitting Industry of the United States and Canada.
The following organizations submitted statements for the
record:
Commercial Vehicle Training Association, National
Association of State Workforce Agencies, The American
Legion, Veterans Education Project, and Veterans
Education Success.
Subcommittee Consideration
On November 15, 2023, the Subcommittee on Economic
Opportunity held a markup on the legislation included H.R.
3738. There were no amendments to this bill. A motion was made
by Mr. Levin to favorably forward H.R. 3738 to the full
committee.
Committee Consideration
On December 5, 2023, the full Committee met in open markup
session, a quorum being present, and ordered H.R. 3738, as
amended, be reported favorably to the House of Representatives
by voice vote. During consideration of the bill, the following
amendments were considered:
An amendment in the nature of a substitute offered by
Chairman Bost would remove references to a program
under the jurisdiction of the Small Business
Administration. The amendment would also extend current
rates for VA home loan funding fees to pay for
mandatory and discretionary costs. The amendment in the
nature of a substitute, as amended, was approved by
voice vote.
A motion by Ranking Member Takano to report H.R. 3738, as
amended, favorably to the House of Representatives was agreed
to by voice vote.
Committee Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, no recorded votes were taken on
amendments or in connection with ordering H.R. 3738, as
amended, reported to the House.
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's performance
goals and objectives of H.R. 3738, as amended, are to provide
support and assistance related to economic opportunities for
veterans, their dependents, and survivors and ensure that
rehabilitation and employment programs, educational assistance,
TAP, and veterans home loan programs would receive more focused
attention and be managed more efficiently.
Earmarks and Tax and Tariff Benefits
H.R. 3738, 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 Congressional Budget
Office cost estimate on this measure.
Budget Authority and Congressional Budget Office
Cost Estimate
The bill would:
Establish a new administration in the
Department of Veterans Affairs (VA) to oversee programs
that provide education benefits, vocational training,
and home loan guarantees to veterans and service
members
Extend the higher rates for fees that VA
charges borrowers for home loan guarantees
Estimated budgetary effects would mainly stem from:
Establishing the new administration
Extending the higher fee rates charged by VA
for home loan guarantees
Bill summary: H.R. 3738 would create a new administration
in the Department of Veterans Affairs (VA) to manage several of
its current programs. The bill also would make changes to VA's
home loan guarantee program.
Estimated Federal cost: The estimated budgetary effects of
H.R. 3738 are shown in Table 1. The costs of the legislation
fall within budget function 700 (veterans benefits and
services).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3738
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-----------------------------------------------------------------------------------------------------
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2024-2028 2024-2033
--------------------------------------------------------------------------------------------------------------------------------------------------------
DECREASES (-) IN DIRECT SPENDING
Estimated Budget Authority........................ 0 0 0 0 0 0 0 0 -36 0 0 -36
Estimated Outlays................................. 0 0 0 0 0 0 0 0 -36 0 0 -36
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization........................... 1 9 7 7 7 7 7 8 8 8 31 69
Estimated Outlays................................. 1 6 7 7 7 7 7 8 8 8 28 66
--------------------------------------------------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that H.R.
3738 would be enacted early in calendar year 2024 and that the
provisions will take effect upon enactment or on the dates
specified by the bill. CBO estimates that outlays will follow
historical spending patterns for affected programs.
Direct spending: The bill would extend the higher rates for
fees that VA charges borrowers for its loan guarantees. VA
provides loan guarantees to lenders that allow eligible
borrowers to obtain better loan terms--such as lower interest
rates or smaller down payments--to purchase, construct,
improve, or refinance a home. VA typically pays lenders up to
25 percent of the outstanding mortgage balance if a borrower's
home is foreclosed upon. Those payments, net of fees paid by
borrowers and recoveries by lenders, constitute the subsidy
cost for the loan guarantees.\1\
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\1\Under the Federal Credit Reform Act of 1990, the subsidy cost of
a loan guarantee is the net present value of estimated payments by the
government to cover defaults and delinquencies, interest subsidies, or
other expenses offset by any payments to the government, including
origination or other fees, penalties, and recoveries on defaulted
loans. Such subsidy costs are calculated by discounting those expected
cash flows using the rate on Treasury securities of comparable
maturity. The resulting estimated subsidy costs are recorded in the
budget when the loans are disbursed or modified. A positive subsidy
indicates that the loan results in net outlays from the Treasury; a
negative subsidy indicates that the loan results in net receipts to the
Treasury.
---------------------------------------------------------------------------
Under current law, the rates for most of the fees that
borrowers pay to VA for loans guaranteed after November 15,
2031, will drop from a weighted average of about 2.4 percent to
about 1.2 percent of the loan amount. H.R. 3738 would extend
the higher rates through November 30, 2031, thereby reducing
the subsidy cost of loans guaranteed during that period. Using
information from VA, CBO estimates that extending the higher
rates would decrease direct spending by $36 million over the
2024-2033 period.
Spending subject to appropriation: The bill would establish
the Veterans Economic Opportunity and Transition Administration
(VEOTA) within VA. Beginning in fiscal year 2025, that new
administration would take on responsibility for managing
readjustment benefits (such as employment programs, education
assistance, and vocational rehabilitation) and home loan
guarantees. Currently those programs are managed by the
Veterans Benefits Administration (VBA). Like VBA, the new
administration would be led by an Under Secretary.
CBO estimates that establishing and operating the new
administration would cost $28 million over the 2024-2028 period
and $66 million over the 2024-2033 period, subject to the
appropriation of the estimated amounts. Most of those costs
would stem from 20 additional employees that CBO estimates
would be needed to support the new Under Secretary and to
manage the daily operations of the new administration. (About
4,600 VA employees oversee and carry out the benefit programs
that would be administered by VEOTA under the bill. CBO expects
that those personnel, along with the records, property, and
budgetary resources currently used by VBA to manage those
programs would be transferred to the new administration.)
CBO expects that the administration would gradually hire
those employees beginning in 2024, and that onetime costs
associated with reorganization, relocation, and information
technology needs would be incurred in 2025. By 2026, employee
compensation and ongoing operating expenses would average about
$7 million annually.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in Table 1 under the heading
``Decreases (-) in Direct Spending.''
Increase in long-term net direct spending and deficits: CBO
estimates that enacting H.R. 3738 would not increase net direct
spending or deficits in any of the four consecutive 10-year
periods beginning in 2034.
Mandates: The bill contains no intergovernmental or
private-sector mandates as defined in the Unfunded Mandates
Reform Act.
Estimate prepared by: Federal Costs: Paul B.A. Holland (for
home loans); Logan Smith (for VA administration); Mandates:
Grace Watson.
Estimate reviewed by: David Newman, Chief, Defense,
International Affairs, and Veterans' Affairs Cost Estimates
Unit; Kathleen FitzGerald, Chief, Public and Private Mandates
Unit; Christina Hawley Anthony, Deputy Director of Budget
Analysis.
Estimate approved by: Phillip L. Swagel, Director,
Congressional Budget Office.
Federal Mandates Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandate Reform Act, P.L. 104-4 is inapplicable to H.R. 3738, as
amended.
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.
3738, as amended.
Applicability to Legislative Branch
The Committee finds that H.R. 3738, 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.
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. 3738, as amended, would establish or reauthorize 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.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 would establish the short title of the bill as
the ``Veterans Economic Opportunity and Transition
Administration.''
Section 2. Establishment of Veterans Economic Opportunity and
Transition Administration
This section would add a new chapter titled, ``Chapter 80
Veterans Economic Opportunity and Transition Administration''
to Part V of Title 38 of the United States Code. The new
chapter would establish an administration that primarily
focuses on providing economic opportunity assistance to
veterans. The Undersecretary would be responsible for leading
the new administration. Its primary functions would be
vocational rehabilitation, educational assistance programs, the
Transition Assistance Program under 10 U.S.C. Sec. 1144, home
loan fees, real estate, mortgages, and other programs deemed
necessary by the Department of Veterans Affairs.
Additionally, this section would require an annual report
to Congress under 38 U.S.C. Sec. 529. The report would include
the number of claims decided, claims received, average
processing time for a claim, successful outcomes as determined
by the Secretary, full-time equivalent employees, and
information technology expenses. Full-time employees under this
bill would not exceed 34,228 in 2024 and 35,417 in 2025.
Section 3. Under Secretary for Veterans Economic Opportunity and
Transition
The proposed legislation would add a new section titled
``Under Secretary for Veterans Economic Opportunity and
Transition'' to Chapter 3 of Title 38 of the United States
Code. The Under Secretary would be appointed by the President,
confirmed by the Senate, and selected without considering their
political affiliation. In a vacancy, the Secretary would
establish a commission comprising members representing
education and training, vocational rehabilitation, employment,
real estate, mortgages, finances, education-related survivor
benefits, and veteran liaisons to recommend individuals to the
President. The relevant sections of Title 38 of the United
States Code would be amended to include the new administration.
Section 4. Transfer of services
The Secretary of Veterans Affairs would be required to
report to the Committee on Veterans' Affairs of the House of
Representatives and Senate on the progress toward establishing
the Veterans Economic Opportunity and Transition Administration
within 180 days of enactment of this legislation. The Secretary
would also be required to certify to both Committees that the
transition of the provision of services to such Administration
will not negatively affect the provision of services to
veterans and such services are ready to be transferred.
Section 5. Modification of certain housing loan fees
This section would provide funding for these programs
included in the bill by extending current VA home loan funding
fee rates as established in 38 U.S.C. Sec. 3729 from November
15, 2031, to November 30, 2031.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART I--GENERAL PROVISIONS
Chap. Sec.
General........................................................101
* * * * * * *
PART V--BOARDS, ADMINISTRATIONS, AND SERVICES
* * * * * * *
8001Veterans Economic Opportunity and Transition Administration.......
* * * * * * *
PART I--GENERAL PROVISIONS
* * * * * * *
CHAPTER 3--DEPARTMENT OF VETERANS AFFAIRS
Sec.
* * * * * * *
306A. Under Secretary for Veterans Economic Opportunity and Transition.
* * * * * * *
Sec. 306. Under Secretary for Benefits
(a) There is in the Department an Under Secretary for
Benefits, who is appointed by the President, by and with the
advice and consent of the Senate. The Under Secretary for
Benefits shall be appointed without regard to political
affiliation or activity and solely on the basis of demonstrated
ability in--
(1) fiscal management; and
(2) the administration of programs within the
Veterans Benefits Administration or programs of similar
content and scope.
(b) The Under Secretary for Benefits is the head of, and is
directly responsible to the Secretary for the operations of,
the Veterans Benefits Administration.
(c)(1) Whenever a vacancy in the position of Under Secretary
for Benefits occurs or is anticipated, the Secretary shall
establish a commission to recommend individuals to the
President for appointment to the position.
(2) A commission established under this subsection shall be
composed of the following members appointed by the Secretary:
[(A) Three persons representing education and
training, real estate, mortgage finance, and related
industries, and survivor benefits activities affected
by the Veterans Benefits Administration.]
[(B)] (A) Two persons representing veterans served by
the Veterans Benefits Administration.
[(C)] (B) Two persons who have experience in the
management of veterans benefits programs or programs of
similar content and scope.
[(D)] (C) The Deputy Secretary of Veterans Affairs.
[(E) The chairman of the Veterans' Advisory Committee
on Education formed under section 3692 of this title.]
[(F)] (D) One person who has held the position of
Under Secretary for Benefits (including service as
Chief Benefits Director of the Veterans'
Administration), if the Secretary determines that it is
desirable for such person to be a member of the
commission.
(3) A commission established under this subsection shall
recommend at least three individuals for appointment to the
position of Under Secretary for Benefits. The commission shall
submit all recommendations to the Secretary. The Secretary
shall forward the recommendations to the President with any
comments the Secretary considers appropriate. Thereafter, the
President may request the commission to recommend additional
individuals for appointment.
(4) The Assistant Secretary or Deputy Assistant Secretary of
Veterans Affairs who performs personnel management and labor
relations functions shall serve as the executive secretary of a
commission established under this subsection.
Sec. 306A. Under Secretary for Veterans Economic Opportunity and
Transition
(a) Under Secretary.--There is in the Department an Under
Secretary for Veterans Economic Opportunity and Transition, who
is appointed by the President, by and with the advice and
consent of the Senate. The Under Secretary for Veterans
Economic Opportunity and Transition shall be appointed without
regard to political affiliation or activity and solely on the
basis of demonstrated ability in--
(1) information technology; and
(2) the administration of programs within the
Veterans Economic Opportunity and Transition
Administration or programs of similar content and
scope.
(b) Responsibilities.--The Under Secretary for Veterans
Economic Opportunity and Transition is the head of, and is
directly responsible to the Secretary for the operations of,
the Veterans Economic Opportunity and Transition
Administration.
(c) Vacancies.--(1) Whenever a vacancy in the position of
Under Secretary for Veterans Economic Opportunity and
Transition occurs or is anticipated, the Secretary shall
establish a commission to recommend individuals to the
President for appointment to the position.
(2) A commission established under this subsection shall be
composed of the following members appointed by the Secretary:
(A) Three persons representing education and
training, vocational rehabilitation, employment, real
estate, mortgage finance and related industries, and
survivor benefits activities affected by the Veterans
Economic Opportunity and Transition Administration.
(B) Two persons representing veterans served by the
Veterans Economic Opportunity and Transition
Administration.
(C) Two persons who have experience in the management
of private sector benefits programs of similar content
and scope to the economic opportunity and transition
programs of the Department.
(D) The Deputy Secretary of Veterans Affairs.
(E) The chairman of the Veterans' Advisory Committee
on Education formed under section 3692 of this title.
(F) One person who has held the position of Under
Secretary for Veterans Economic Opportunity and
Transition, if the Secretary determines that it is
desirable for such person to be a member of the
commission.
(3) A commission established under this subsection shall
recommend at least three individuals for appointment to the
position of Under Secretary for Veterans Economic Opportunity
and Transition. The commission shall submit all recommendations
to the Secretary. The Secretary shall forward the
recommendations to the President and the Committees on
Veterans' Affairs of the Senate and House of Representatives
with any comments the Secretary considers appropriate.
Thereafter, the President may request the commission to
recommend additional individuals for appointment.
(4) The Assistant Secretary or Deputy Assistant Secretary of
Veterans Affairs who performs personnel management and labor
relations functions shall serve as the executive secretary of a
commission established under this subsection.
* * * * * * *
Sec. 317. Center for Minority Veterans
(a) There is in the Department a Center for Minority
Veterans. There is at the head of the Center a Director.
(b) The Director shall be a career or noncareer appointee in
the Senior Executive Service. The Director shall be appointed
for a term of six years.
(c) The Director reports directly to the Secretary or the
Deputy Secretary concerning the activities of the Center.
(d) The Director shall perform the following functions with
respect to veterans who are minorities:
(1) Serve as principal adviser to the Secretary on
the adoption and implementation of policies and
programs affecting veterans who are minorities.
(2) Make recommendations to the Secretary, the Under
Secretary for Health, the Under Secretary for Benefits,
the Under Secretary for Veterans Economic Opportunity
and Transition, and other Department officials for the
establishment or improvement of programs in the
Department for which veterans who are minorities are
eligible.
(3) Promote the use of benefits authorized by this
title by veterans who are minorities and the conduct of
outreach activities to veterans who are minorities, in
conjunction with outreach activities carried out under
chapter 77 of this title.
(4) Disseminate information and serve as a resource
center for the exchange of information regarding
innovative and successful programs which improve the
services available to veterans who are minorities.
(5) Conduct and sponsor appropriate social and
demographic research on the needs of veterans who are
minorities and the extent to which programs authorized
under this title meet the needs of those veterans,
without regard to any law concerning the collection of
information from the public.
(6) Analyze and evaluate complaints made by or on
behalf of veterans who are minorities about the
adequacy and timeliness of services provided by the
Department and advise the appropriate official of the
Department of the results of such analysis or
evaluation.
(7) Consult with, and provide assistance and
information to, officials responsible for administering
Federal, State, local, and private programs that assist
veterans, to encourage those officials to adopt
policies which promote the use of those programs by
veterans who are minorities.
(8) Advise the Secretary when laws or policies have
the effect of discouraging the use of benefits by
veterans who are minorities.
(9) Publicize the results of medical research which
are of particular significance to veterans who are
minorities.
(10) Advise the Secretary and other appropriate
officials on the effectiveness of the Department's
efforts to accomplish the goals of section 492B of the
Public Health Service Act (42 U.S.C. 289a-2) with
respect to the inclusion of minorities in clinical
research and on particular health conditions affecting
the health of members of minority groups which should
be studied as part of the Department's medical research
program and promote cooperation between the Department
and other sponsors of medical research of potential
benefit to veterans who are minorities.
(11) Provide support and administrative services to
the Advisory Committee on Minority Veterans provided
for under section 544 of this title.
(12) Perform such other duties consistent with this
section as the Secretary shall prescribe.
(e) The Secretary shall ensure that the Director is furnished
sufficient resources to enable the Director to carry out the
functions of the Center in a timely manner.
(f) The Secretary shall include in documents submitted to
Congress by the Secretary in support of the President's budget
for each fiscal year--
(1) detailed information on the budget for the
Center;
(2) the Secretary's opinion as to whether the
resources (including the number of employees) proposed
in the budget for that fiscal year are adequate to
enable the Center to comply with its statutory and
regulatory duties; and
(3) a report on the activities and significant
accomplishments of the Center during the preceding
fiscal year.
(g) In this section--
(1) The term ``veterans who are minorities'' means
veterans who are minority group members.
(2) The term ``minority group member'' has the
meaning given such term in section 544(d) of this
title.
Sec. 318. Center for Women Veterans
(a) There is in the Department a Center for Women Veterans.
There is at the head of the Center a Director.
(b) The Director shall be a career or noncareer appointee in
the Senior Executive Service. The Director shall be appointed
for a term of six years.
(c) The Director reports directly to the Secretary or the
Deputy Secretary concerning the activities of the Center.
(d) The Director shall perform the following functions with
respect to veterans who are women:
(1) Serve as principal adviser to the Secretary on
the adoption and implementation of policies and
programs affecting veterans who are women.
(2) Make recommendations to the Secretary, the Under
Secretary for Health, the Under Secretary for Benefits,
the Under Secretary for Veterans Economic Opportunity
and Transition, and other Department officials for the
establishment or improvement of programs in the
Department for which veterans who are women are
eligible.
(3) Promote the use of benefits authorized by this
title by veterans who are women and the conduct of
outreach activities to veterans who are women, in
conjunction with outreach activities carried out under
chapter 77 of this title.
(4) Disseminate information and serve as a resource
center for the exchange of information regarding
innovative and successful programs which improve the
services available to veterans who are women.
(5) Conduct and sponsor appropriate social and
demographic research on the needs of veterans who are
women and the extent to which programs authorized under
this title meet the needs of those veterans, without
regard to any law concerning the collection of
information from the public.
(6) Analyze and evaluate complaints made by or on
behalf of veterans who are women about the adequacy and
timeliness of services provided by the Department and
advise the appropriate official of the Department of
the results of such analysis or evaluation.
(7) Consult with, and provide assistance and
information to, officials responsible for administering
Federal, State, local, and private programs that assist
veterans, to encourage those officials to adopt
policies which promote the use of those programs by
veterans who are women.
(8) Advise the Secretary when laws or policies have
the effect of discouraging the use of benefits by
veterans who are women.
(9) Publicize the results of medical research which
are of particular significance to veterans who are
women.
(10) Advise the Secretary and other appropriate
officials on the effectiveness of the Department's
efforts to accomplish the goals of section 492B of the
Public Health Service Act (42 U.S.C. 289a-2) with
respect to the inclusion of women in clinical research
and on particular health conditions affecting women's
health which should be studied as part of the
Department's medical research program and promote
cooperation between the Department and other sponsors
of medical research of potential benefit to veterans
who are women.
(11) Provide support and administrative services to
the Advisory Committee on Women Veterans established
under section 542 of this title.
(12) Perform such other duties consistent with this
section as the Secretary shall prescribe.
(e) The Secretary shall ensure that the Director is furnished
sufficient resources to enable the Director to carry out the
functions of the Center in a timely manner.
(f) The Secretary shall include in documents submitted to
Congress by the Secretary in support of the President's budget
for each fiscal year--
(1) detailed information on the budget for the
Center;
(2) the Secretary's opinion as to whether the
resources (including the number of employees) proposed
in the budget for that fiscal year are adequate to
enable the Center to comply with its statutory and
regulatory duties; and
(3) a report on the activities and significant
accomplishments of the Center during the preceding
fiscal year.
* * * * * * *
CHAPTER 5--AUTHORITY AND DUTIES OF THE SECRETARY
SUBCHAPTER I--GENERAL AUTHORITIES
* * * * * * *
Sec. 516. Equal employment responsibilities
(a)(1) The Secretary shall provide that the employment
discrimination complaint resolution system within the
Department be established and administered so as to encourage
timely and fair resolution of concerns and complaints. The
Secretary shall take steps to ensure that the system is
administered in an objective, fair, and effective manner and in
a manner that is perceived by employees and other interested
parties as being objective, fair, and effective.
(2) The Secretary shall ensure that the employment
discrimination complaint resolution system established under
paragraph (1) requires that any manager of the Department who
receives a sexual or other harassment or employment
discrimination complaint reports such complaint to the Office
of Resolution Management, or successor office, immediately, or
if such immediate reporting is impracticable, not later than
two days after the date on which the manager receives the
complaint.
(b) The Secretary shall provide--
(1) that employees responsible for counseling
functions associated with employment discrimination and
for receiving, investigating, and processing complaints
of employment discrimination shall be supervised in
those functions by, and report to, an Assistant
Secretary or a Deputy Assistant Secretary, in
accordance with subsection (h)(2), for complaint
resolution management; and
(2) that employees performing employment
discrimination complaint resolution functions at a
facility of the Department shall not be subject to the
authority, direction, and control of the Director of
the facility with respect to those functions.
(c)(1) The Secretary shall ensure that all employees of the
Department receive adequate education and training for the
purposes of this section and section 319 of this title.
(2)(A) Beginning not later than 180 days after the date of
the enactment of the Joseph Maxwell Cleland and Robert Joseph
Dole Memorial Veterans Benefits and Health Care Improvement Act
of 2022, the Secretary shall provide to each employee of the
Department mandatory annual training on identifying and
addressing sexual and other harassment and employment
discrimination, including with respect to processes under the
Harassment Prevention Program of the Department, or such
successor program.
(B) An employee of the Department who is hired on or after
such date shall receive the first such mandatory annual
training not later than 60 days after being hired.
(d) The Secretary shall, when appropriate, impose
disciplinary measures, as authorized by law, in the case of
employees of the Department who engage in unlawful employment
discrimination, including retaliation against an employee
asserting rights under an equal employment opportunity law.
(e)(1)(A) Not later than 45 days after the end of each
calendar quarter, the Secretary shall submit to the Committees
on Veterans' Affairs of the Senate and House of Representatives
a report summarizing the employment discrimination complaints
filed against the individuals referred to in paragraph (2)
during such quarter.
(B) Subparagraph (A) shall apply in the case of complaints
filed against individuals on the basis of such individuals'
personal conduct and shall not apply in the case of complaints
filed solely on the basis of such individuals' positions as
officials of the Department.
(2) Paragraph (1) applies to the following officers and
employees of the Department:
(A) The Secretary.
(B) The Deputy Secretary of Veterans Affairs.
(C) The Under Secretary for [Health and the Under
Secretary for Benefits] Health, the Under Secretary for
Benefits, and the Under Secretary for Veterans Economic
Opportunity and Transition.
(D) Each Assistant Secretary of Veterans Affairs and
each Deputy Assistant Secretary of Veterans Affairs.
(E) The Under Secretary of Veterans Affairs for
Memorial Affairs.
(F) The General Counsel of the Department.
(G) The Chairman of the Board of Veterans' Appeals.
(H) The Chairman of the Board of Contract Appeals of
the Department.
(I) The director and the chief of staff of each
medical center of the Department.
(J) The director of each Veterans Integrated Services
Network.
(K) The director of each regional office of the
Department.
(L) Each program director of the Central Office of
the Department.
(3) Each report under this subsection--
(A) may not disclose information which identifies the
individuals filing, or the individuals who are the
subject of, the complaints concerned or the facilities
at which the discrimination identified in such
complaints is alleged to have occurred;
(B) shall summarize such complaints by type and by
equal employment opportunity field office area in which
filed; and
(C) shall include copies of such complaints, with the
information described in subparagraph (A) redacted.
(4) Not later than April 1 each year, the Assistant Secretary
shall submit to the committees referred to in paragraph (1)(A)
a report on the complaints covered by paragraph (1) during the
preceding year, including the number of such complaints filed
during that year and the status and resolution of the
investigation of such complaints.
(f) The Secretary shall ensure that an employee of the
Department who seeks counseling relating to employment
discrimination may elect to receive such counseling from an
employee of the Department who carries out equal employment
opportunity counseling functions on a full-time basis rather
than from an employee of the Department who carries out such
functions on a part-time basis.
(g)(1)(A) Except as provided in paragraph (4), beginning on
the date of the enactment of the Joseph Maxwell Cleland and
Robert Joseph Dole Memorial Veterans Benefits and Health Care
Improvement Act of 2022 and ending on the date that is three
years after the date of the enactment of such Act, the number
of employees of the Department whose duties include equal
employment opportunity counseling functions may not exceed 76
full-time equivalent employees.
(B) Except as provided in paragraph (4), beginning on the
date that is three years after the date of enactment of the
Joseph Maxwell Cleland and Robert Joseph Dole Memorial Veterans
Benefits and Health Care Improvement Act of 2022, the number of
employees of the Department whose duties include equal
employment opportunity counseling functions may not exceed 81
full-time equivalent employees.
(2) Except as provided in paragraph (4), of the 76 full-time
equivalent employees set forth in paragraph (1), the number of
employees of the Department whose duties include equal
employment opportunity counseling functions as well as other
unrelated functions may not exceed 40 full-time equivalent
employees.
(3) Except as provided in paragraph (4), any employee
described in paragraph (2) whose duties include equal
employment opportunity counseling functions as well as other
unrelated functions may be assigned equal employment
opportunity counseling functions only at Department facilities
in remote geographic locations.
(4)(A) Beginning on the date that is one year after the date
of enactment of the Joseph Maxwell Cleland and Robert Joseph
Dole Memorial Veterans Benefits and Health Care Improvement Act
of 2022, the Secretary shall promptly notify Congress if, at
any point in time, the number of full-time equivalent employees
of the Department specified in paragraph (1), whose duties
include equal opportunity counseling functions, is insufficient
for the Department to meet its required obligations under law.
(B) Notification under subparagraph (A) shall include--
(i) the specific legal obligations relating to
employment discrimination, or other matters similar to
those covered by regulations prescribed by the Equal
Employment Opportunity Commission, that the Department
is unable to meet; and
(ii) the total additional number of full-time
equivalent employees of the Department that would be
needed for the Department to meet such obligations.
(h)(1) The provisions of this section shall be implemented in
a manner consistent with procedures applicable under
regulations prescribed by the Equal Employment Opportunity
Commission.
(2) Beginning not later than 90 days after the date of the
enactment of the Joseph Maxwell Cleland and Robert Joseph Dole
Memorial Veterans Benefits and Health Care Improvement Act of
2022, in carrying out paragraph (1), the Secretary shall ensure
that the official of the Department who serves as the Equal
Employment Opportunity Director of the Department--
(A) reports directly to the Deputy Secretary with
respect to the functions under this section; and
(B) does not also serve in a position that has
responsibility over personnel functions of the
Department or other functions that conflict with the
functions under this section.
(i) In accordance with subsection (b), not later than one
year after the date of the enactment of the Joseph Maxwell
Cleland and Robert Joseph Dole Memorial Veterans Benefits and
Health Care Improvement Act of 2022, the Secretary shall ensure
that each Equal Employment Opportunity program manager of the
Department at the facility level reports to the head of the
Office of Resolution Management, or such successor office
established pursuant to subsection (a), with respect to the
equal employment functions of the program manager.
* * * * * * *
SUBCHAPTER III--ADVISORY COMMITTEES
Sec. 541. Advisory Committee on Former Prisoners of War
(a)(1) The Secretary shall establish an advisory committee to
be known as the Advisory Committee on Former Prisoners of War
(hereinafter in this section referred to as the ``Committee'').
(2)(A) The members of the Committee shall be appointed by the
Secretary from the general public and shall include--
(i) appropriate representatives of veterans who are
former prisoners of war;
(ii) individuals who are recognized authorities in
fields pertinent to disabilities prevalent among former
prisoners of war, including authorities in
epidemiology, mental health, nutrition, geriatrics, and
internal medicine; and
(iii) appropriate representatives of disabled
veterans.
(B) The Committee shall also include, as ex officio members,
the Under Secretary for [Health and the Under Secretary for
Benefits] Health, the Under Secretary for Benefits, and the
Under Secretary for Veterans Economic Opportunity and
Transition, or their designees.
(3) The Secretary shall determine the number, terms of
service, and pay and allowances of members of the Committee
appointed by the Secretary, except that the term of service of
any such member may not exceed three years.
(b) The Secretary shall, on a regular basis, consult with and
seek the advice of the Committee with respect to the
administration of benefits under this title for veterans who
are former prisoners of war and the needs of such veterans with
respect to compensation, health care, and rehabilitation.
(c)(1) Not later than July 1 of each odd-numbered year
through 2009, the Committee shall submit to the Secretary a
report on the programs and activities of the Department that
pertain to veterans who are former prisoners of war. Each such
report shall include--
(A) an assessment of the needs of such veterans with
respect to compensation, health care, and
rehabilitation;
(B) a review of the programs and activities of the
Department designed to meet such needs; and
(C) such recommendations (including recommendations
for administrative and legislative action) as the
Committee considers to be appropriate.
(2) The Secretary shall, within 60 days after receiving each
report under paragraph (1), submit to the Congress a copy of
the report, together with any comments concerning the report
that the Secretary considers appropriate.
(3) The Committee may also submit to the Secretary such other
reports and recommendations as the Committee considers
appropriate.
(4) The Secretary shall submit with each annual report
submitted to the Congress pursuant to section 529 of this title
a summary of all reports and recommendations of the Committee
submitted to the Secretary since the previous annual report of
the Secretary submitted to the Congress pursuant to that
section.
Sec. 542. Advisory Committee on Women Veterans
(a)(1) The Secretary shall establish an advisory committee to
be known as the Advisory Committee on Women Veterans
(hereinafter in this section referred to as ``the Committee'').
(2)(A) The Committee shall consist of members appointed by
the Secretary from the general public, including--
(i) representatives of women veterans;
(ii) individuals who are recognized authorities in
fields pertinent to the needs of women veterans,
including the gender-specific health-care needs of
women;
(iii) representatives of both female and male
veterans with service-connected disabilities, including
at least one female veteran with a service-connected
disability and at least one male veteran with a
service-connected disability; and
(iv) women veterans who are recently separated from
service in the Armed Forces.
(B) The Committee shall include, as ex officio members--
(i) the Secretary of Labor (or a representative of
the Secretary of Labor designated by the Secretary
after consultation with the Assistant Secretary of
Labor for Veterans' Employment);
(ii) the Secretary of Defense (or a representative of
the Secretary of Defense designated by the Secretary of
Defense after consultation with the Defense Advisory
Committee on Women in the Services); and
(iii) the Under Secretary for [Health and the Under
Secretary for Benefits] Health, the Under Secretary for
Benefits, and the Under Secretary for Veterans Economic
Opportunity and Transition, or their designees.
(C) The Secretary may invite representatives of other
departments and agencies of the United States to participate in
the meetings and other activities of the Committee.
(3) The Secretary shall determine the number, terms of
service, and pay and allowances of members of the Committee
appointed by the Secretary, except that a term of service of
any such member may not exceed three years. The Secretary may
reappoint any such member for additional terms of service.
(b) The Secretary shall, on a regular basis, consult with and
seek the advice of the Committee with respect to the
administration of benefits by the Department for women
veterans, reports and studies pertaining to women veterans and
the needs of women veterans with respect to compensation,
health care, rehabilitation, outreach, and other benefits and
programs administered by the Department, including the Center
for Women Veterans.
(c)(1) Not later than July 1 of each year, the Committee
shall submit to the Secretary a report on the programs and
activities of the Department that pertain to women veterans.
Each such report shall include--
(A) an assessment of the needs of women veterans with
respect to compensation, health care, rehabilitation,
outreach, and other benefits and programs administered
by the Department;
(B) a review of the programs and activities of the
Department designed to meet such needs;
(C) an assessment of the effects of intimate partner
violence on women veterans; and
(D) such recommendations (including recommendations
for administrative and legislative action) as the
Committee considers appropriate.
(2) The Secretary shall, within 60 days after receiving each
report under paragraph (1), submit to the Congress a copy of
the report, together with any comments concerning the report
that the Secretary considers appropriate.
(3) The Committee may also submit to the Secretary such other
reports and recommendations as the Committee considers
appropriate.
(4) The Secretary shall submit with each annual report
submitted to the Congress pursuant to section 529 of this title
a summary of all reports and recommendations of the Committee
submitted to the Secretary since the previous annual report of
the Secretary submitted pursuant to such section.
* * * * * * *
Sec. 544. Advisory Committee on Minority Veterans
(a)(1) The Secretary shall establish an advisory committee to
be known as the Advisory Committee on Minority Veterans
(hereinafter in this section referred to as ``the Committee'').
(2)(A) The Committee shall consist of members appointed by
the Secretary from the general public, including--
(i) representatives of veterans who are minority
group members;
(ii) individuals who are recognized authorities in
fields pertinent to the needs of veterans who are
minority group members;
(iii) veterans who are minority group members and who
have experience in a military theater of operations;
(iv) veterans who are minority group members and who
do not have such experience; and
(v) women veterans who are minority group members and
are recently separated from service in the Armed
Forces.
(B) The Committee shall include, as ex officio members, the
following:
(i) The Secretary of Labor (or a representative of
the Secretary of Labor designated by the Secretary
after consultation with the Assistant Secretary of
Labor for Veterans' Employment).
(ii) The Secretary of Defense (or a representative of
the Secretary of Defense designated by the Secretary of
Defense).
(iii) The Secretary of the Interior (or a
representative of the Secretary of the Interior
designated by the Secretary of the Interior).
(iv) The Secretary of Commerce (or a representative
of the Secretary of Commerce designated by the
Secretary of Commerce).
(v) The Secretary of Health and Human Services (or a
representative of the Secretary of Health and Human
Services designated by the Secretary of Health and
Human Services).
(vi) The Under Secretary for [Health and the Under
Secretary for Benefits] Health, the Under Secretary for
Benefits, and the Under Secretary for Veterans Economic
Opportunity and Transition, or their designees.
(C) The Secretary may invite representatives of other
departments and agencies of the United States to participate in
the meetings and other activities of the Committee.
(3) The Secretary shall determine the number, terms of
service, and pay and allowances of members of the Committee
appointed by the Secretary, except that a term of service of
any such member may not exceed three years. The Secretary may
reappoint any such member for additional terms of service.
(4) The Committee shall meet as often as the Secretary
considers necessary or appropriate, but not less often than
twice each fiscal year.
(b) The Secretary shall, on a regular basis, consult with and
seek the advice of the Committee with respect to the
administration of benefits by the Department for veterans who
are minority group members, reports and studies pertaining to
such veterans and the needs of such veterans with respect to
compensation, health care, rehabilitation, outreach, and other
benefits and programs administered by the Department, including
the Center for Minority Veterans.
(c)(1) Not later than July 1 of every other year, the
Committee shall submit to the Secretary a report on the
programs and activities of the Department that pertain to
veterans who are minority group members. Each such report shall
include--
(A) an assessment of the needs of veterans who are
minority group members with respect to compensation,
health care, rehabilitation, outreach, and other
benefits and programs administered by the Department;
(B) a review of the programs and activities of the
Department designed to meet such needs; and
(C) such recommendations (including recommendations
for administrative and legislative action) as the
Committee considers appropriate.
(2) The Secretary shall, within 60 days after receiving each
report under paragraph (1), submit to Congress a copy of the
report, together with any comments concerning the report that
the Secretary considers appropriate.
(3) The Committee may also submit to the Secretary such other
reports and recommendations as the Committee considers
appropriate.
(4) The Secretary shall submit with each annual report
submitted to the Congress pursuant to section 529 of this title
a summary of all reports and recommendations of the Committee
submitted to the Secretary since the previous annual report of
the Secretary submitted pursuant to such section.
(d) In this section, the term ``minority group member'' means
an individual who is--
(1) Asian American;
(2) Black;
(3) Hispanic;
(4) Native American (including American Indian,
Alaskan Native, and Native Hawaiian); or
(5) Pacific-Islander American.
(e) The Committee shall cease to exist September 30, 2026.
* * * * * * *
CHAPTER 7--EMPLOYEES
* * * * * * *
SUBCHAPTER I--GENERAL EMPLOYEE MATTERS
* * * * * * *
Sec. 709. Employment restrictions
(a)(1) Notwithstanding section 3134(d) of title 5, the number
of Senior Executive Service positions in the Department which
are filled by noncareer appointees in any fiscal year may not
at any time exceed 5 percent of the average number of senior
executives employed in Senior Executive Service positions in
the Department during the preceding fiscal year.
(2) For purposes of this subsection, the average number of
senior executives employed in Senior Executive Service
positions in the Department during a fiscal year shall be equal
to 25 percent of the sum of the total number of senior
executives employed in Senior Executive Service positions in
the Department on the last day of each quarter of such fiscal
year.
(b) The number of positions in the Department which may be
excepted from the competitive service, on a temporary or
permanent basis, because of their confidential or policy-
determining character may not at any time exceed the equivalent
of 15 positions.
(c)(1) Political affiliation or activity may not be taken
into account in connection with the appointment of any person
to any position in or to perform any service for the Department
or in the assignment or advancement of any employee in the
Department.
(2) Paragraph (1) shall not apply--
(A) to the appointment of any person by the President
under this title, other than the appointment of the
Under Secretary for Health, the Under Secretary for
Benefits, the Under Secretary for Veterans Economic
Opportunity and Transition, and the Inspector General;
or
(B) to the appointment of any person to (i) a Senior
Executive Service position as a noncareer appointee, or
(ii) a position that is excepted from the competitive
service, on a temporary or permanent basis, because of
the confidential or policy-determining character of the
position.
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
* * * * * * *
Sec. 3729. Loan fee
(a) Requirement of Fee.--(1) Except as provided in subsection
(c), a fee shall be collected from each person obtaining a
housing loan guaranteed, insured, or made under this chapter,
and each person assuming a loan to which section 3714 of this
title applies. No such loan may be guaranteed, insured, made,
or assumed until the fee payable under this section has been
remitted to the Secretary.
(2) The fee may be included in the loan and paid from the
proceeds thereof.
(b) Determination of Fee.--(1) The amount of the fee shall be
determined from the loan fee table in paragraph (2). The fee is
expressed as a percentage of the total amount of the loan
guaranteed, insured, or made, or, in the case of a loan
assumption, the unpaid principal balance of the loan on the
date of the transfer of the property.
(2) The loan fee table referred to in paragraph (1) is as
follows:
----------------------------------------------------------------------------------------------------------------
Type of loan Active duty veteran Reservist Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in 2.15 2.40 NA
section 3710(a) to purchase or
construct a dwelling with 0-down, or
any other initial loan described in
section 3710(a) other than with 5-
down or 10-down (closed on or after
October 1, 2004, and before January
1, 2020).
(A)(ii) Initial loan described in 2.30 2.30 NA
section 3710(a) to purchase or
construct a dwelling with 0-down, or
any other initial loan described in
section 3710(a) other than with 5-
down or 10-down (closed on or after
January 1, 2020, and before April 7,
2023).
(A)(iii) Initial loan described in 2.15 2.15 NA
section 3710(a) to purchase or
construct a dwelling with 0-down, or
any other initial loan described in
section 3710(a) other than with 5-
down or 10-down (closed on or after
April 7, 2023, and before [November
15, 2031] November 30, 2031 ).
(A)(iv) Initial loan described in 1.40 1.40 NA
section 3710(a) to purchase or
construct a dwelling with 0-down, or
any other initial loan described in
section 3710(a) other than with 5-
down or 10-down (closed on or after
[November 15, 2031] November 30,
2031 ).
(B)(i) Subsequent loan described in 3.30 3.30 NA
section 3710(a) to purchase or
construct a dwelling with 0-down, or
any other subsequent loan described
in section 3710(a) (closed on or
after October 1, 2004, and before
January 1, 2020).
(B)(ii) Subsequent loan described in 3.60 3.60 NA
section 3710(a) to purchase or
construct a dwelling with 0-down, or
any other subsequent loan described
in section 3710(a) (closed on or
after January 1, 2020, and before
April 7, 2023).
(B)(iii) Subsequent loan described in 3.30 3.30 NA
section 3710(a) to purchase or
construct a dwelling with 0-down, or
any other subsequent loan described
in section 3710(a) (closed on or
after April 7, 2023, and before
[November 15, 2031] November 30,
2031 ).
(B)(iv) Subsequent loan described in 1.25 1.25 NA
section 3710(a) to purchase or
construct a dwelling with 0-down, or
any other subsequent loan described
in section 3710(a) (closed on or
after [November 15, 2031] November
30, 2031 ).
(C)(i) Loan described in section 1.50 1.75 NA
3710(a) to purchase or construct a
dwelling with 5-down (closed before
January 1, 2020).
(C)(ii) Loan described in section 1.65 1.65 NA
3710(a) to purchase or construct a
dwelling with 5-down (closed on or
after January 1, 2020, and before
April 7, 2023).
(C)(iii) Loan described in section 1.50 1.50 NA
3710(a) to purchase or construct a
dwelling with 5-down (closed on or
after April 7, 2023, and before
[November 15, 2031] November 30,
2031 ).
(C)(iv) Loan described in section 0.75 0.75 NA
3710(a) to purchase or construct a
dwelling with 5-down (closed on or
after [November 15, 2031] November
30, 2031 ).
(D)(i) Loan described in section 1.25 1.50 NA
3710(a) to purchase or construct a
dwelling with 10-down (closed before
January 1, 2020).
(D)(ii) Loan described in section 1.40 1.40 NA
3710(a) to purchase or construct a
dwelling with 10-down (closed on or
after January 1, 2020, and before
April 7, 2023).
(D)(iii) Loan described in section 1.25 1.25 NA
3710(a) to purchase or construct a
dwelling with 10-down (closed on or
after April 7, 2023, and before
[November 15, 2031] November 30,
2031 ).
(D)(iv) Loan described in section 0.50 0.50 NA
3710(a) to purchase or construct a
dwelling with 10-down (closed on or
after [November 15, 2031] November
30, 2031 ).
(E) Interest rate reduction 0.50 0.50 NA
refinancing loan.
(F) Direct loan under section 3711... 1.00 1.00 NA
(G) Manufactured home loan under 1.00 1.00 NA
section 3712 (other than an interest
rate reduction refinancing loan).
(H) Loan to Native American veteran 1.25 1.25 NA
under section 3762 (other than an
interest rate reduction refinancing
loan).
(I) Loan assumption under section 0.50 0.50 0.50
3714.
(J) Loan under section 3733(a)....... 2.25 2.25 2.25.
----------------------------------------------------------------------------------------------------------------
(3) Any reference to a section in the ``Type of loan'' column
in the loan fee table in paragraph (2) refers to a section of
this title.
(4) For the purposes of paragraph (2):
(A) The term ``active duty veteran'' means any
veteran eligible for the benefits of this chapter other
than a Reservist.
(B) The term ``Reservist'' means a veteran described
in section 3701(b)(5)(A) of this title who is eligible
under section 3702(a)(2)(E) of this title.
(C) The term ``other obligor'' means a person who is
not a veteran, as defined in section 101 of this title
or other provision of this chapter.
(D)(i) The term ``initial loan'' means a loan to a
veteran guaranteed under section 3710 or made under
section 3711 of this title if the veteran has never
obtained a loan guaranteed under section 3710 or made
under section 3711 of this title.
(ii) If a veteran has obtained a loan guaranteed
under section 3710 or made under section 3711 of this
title and the dwelling securing such loan was
substantially damaged or destroyed by a major disaster
declared by the President under section 401 of the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170), the Secretary shall
treat as an initial loan, as defined in clause (i), the
next loan the Secretary guarantees or makes to such
veteran under section 3710 or 3711, respectively, if--
(I) such loan is guaranteed or made before
the date that is three years after the date on
which the dwelling was substantially damaged or
destroyed; and
(II) such loan is only for repairs or
construction of the dwelling, as determined by
the Secretary.
(E) The term ``subsequent loan'' means a loan to a
veteran, other than an interest rate reduction
refinancing loan, guaranteed under section 3710 or made
under section 3711 of this title that is not an initial
loan.
(F) The term ``interest rate reduction refinancing
loan'' means a loan described in section 3710(a)(8),
3710(a)(9)(B)(i), 3710(a)(11), 3712(a)(1)(F), or
3762(h) of this title.
(G) The term ``0-down'' means a downpayment, if any,
of less than 5 percent of the total purchase price or
construction cost of the dwelling.
(H) The term ``5-down'' means a downpayment of at
least 5 percent or more, but less than 10 percent, of
the total purchase price or construction cost of the
dwelling.
(I) The term ``10-down'' means a downpayment of 10
percent or more of the total purchase price or
construction cost of the dwelling.
(c) Waiver of Fee.--(1) A fee may not be collected under this
section from a veteran who is receiving compensation (or who,
but for the receipt of retirement pay or active service pay,
would be entitled to receive compensation), from a surviving
spouse of any veteran (including a person who died in the
active military, naval, air, or space service) who died from a
service-connected disability, or from a member of the Armed
Forces who is serving on active duty and who provides, on or
before the date of loan closing, evidence of having been
awarded the Purple Heart.
(2)(A) A veteran described in subparagraph (B) shall be
treated as receiving compensation for purposes of this
subsection as of the date of the rating described in such
subparagraph without regard to whether an effective date of the
award of compensation is established as of that date.
(B) A veteran described in this subparagraph is a veteran who
is rated eligible to receive compensation--
(i) as the result of a pre-discharge disability
examination and rating; or
(ii) based on a pre-discharge review of existing
medical evidence (including service medical and
treatment records) that results in the issuance of a
memorandum rating.
* * * * * * *
PART V--BOARDS, ADMINISTRATIONS, AND SERVICES
Chap. Sec.
Board of Veterans' Appeals....................................7101
* * * * * * *
8001Veterans Economic Opportunity and Transition Administration.......
* * * * * * *
CHAPTER 77--VETERANS BENEFITS ADMINISTRATION
* * * * * * *
SUBCHAPTER I--ORGANIZATION; GENERAL
Sec. 7701. Organization of the Administration
(a) There is in the Department of Veterans Affairs a Veterans
Benefits Administration. The primary function of the Veterans
Benefits Administration is the administration of nonmedical
benefits programs of the Department which provide assistance,
other than assistance related to Economic Opportunity and
Transition, to veterans and their dependents and survivors.
(b) The Veterans Benefits Administration is under the Under
Secretary for Benefits, who is directly responsible to the
Secretary for the operations of the Administration. The Under
Secretary for Benefits may be referred to as the Chief Benefits
Director.
Sec. 7703. Functions of the Administration
The Veterans Benefits Administration is responsible for the
administration of the following programs of the Department:
(1) Compensation and pension programs.
[(2) Vocational rehabilitation and educational
assistance programs.
[(3) Veterans' housing loan programs.]
[(4)] (2) Veterans' and servicemembers' life
insurance programs.
[(5)] (3) Outreach programs and other veterans'
services programs.
* * * * * * *
CHAPTER 80--VETERANS ECONOMIC OPPORTUNITY AND TRANSITION ADMINISTRATION
Sec.
8001. Organization of Administration.
8002. Functions of Administration.
8003. Annual report to Congress.
Sec. 8001. Organization of Administration
(a) Veterans Economic Opportunity and Transition
Administration.--There is in the Department of Veterans Affairs
a Veterans Economic Opportunity and Transition Administration.
The primary function of the Veterans Economic Opportunity and
Transition Administration is the administration of the programs
of the Department that provide assistance related to economic
opportunity to veterans and their dependents and survivors.
(b) Under Secretary for Economic Opportunity and
Transition.--The Veterans Economic Opportunity and Transition
Administration is under the Under Secretary for Veterans
Economic Opportunity and Transition, who is directly
responsible to the Secretary for the operations of the
Administration.
Sec. 8002. Functions of Administration
The Veterans Economic Opportunity and Transition
Administration is responsible for the administration of the
following programs of the Department:
(1) Vocational rehabilitation and employment
programs.
(2) Educational assistance programs.
(3) Veterans' housing loan and related programs.
(4) The Transition Assistance Program under section
1144 of title 10.
(5) Any other program of the Department that the
Secretary determines appropriate.
Sec. 8003. Annual report to Congress
The Secretary shall include in the annual report to the
Congress required by section 529 of this title a report on the
programs administered by the Under Secretary for Veterans
Economic Opportunity and Transition. Each such report shall
include the following with respect to each such program during
the fiscal year covered by that report:
(1) The number of claims received.
(2) The number of claims decided.
(3) The average processing time for a claim.
(4) The number of successful outcomes (as determined
by the Secretary).
(5) The number of full-time equivalent employees.
(6) The amounts expended for information technology.
* * * * * * *
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