[House Report 115-680]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-680
======================================================================
TO AMEND TITLE 38, UNITED STATES CODE, TO CLARIFY PRESUMPTIONS RELATING
TO THE EXPOSURE OF CERTAIN VETERANS WHO SERVED IN THE VICINITY OF THE
REPUBLIC OF VIETNAM, AND FOR OTHER PURPOSES
_______
May 18, 2018.--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. 299]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 299) to amend title 38, United States Code, to
clarify presumptions relating to the exposure of certain
veterans who served in the vicinity of the Republic of Vietnam,
and for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 13
Background and Need for Legislation.............................. 14
Hearings......................................................... 20
Subcommittee Consideration....................................... 21
Committee Consideration.......................................... 21
Committee Votes.................................................. 21
Committee Oversight Findings..................................... 21
Statement of General Performance Goals and Objectives............ 22
New Budget Authority, Entitlement Authority, and Tax Expenditures 22
Earmarks and Tax and Tariff Benefits............................. 22
Committee Cost Estimate.......................................... 22
Congressional Budget Office Estimate............................. 22
Federal Mandates Statement....................................... 32
Advisory Committee Statement..................................... 32
Constitutional Authority Statement............................... 32
Applicability to Legislative Branch.............................. 32
Statement on Duplication of Federal Programs..................... 32
Disclosure of Directed Rulemaking................................ 32
Section-by-Section Analysis of the Legislation................... 33
Changes in Existing Law Made by the Bill as Reported............. 35
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. CLARIFICATION OF PRESUMPTIONS OF EXPOSURE FOR VETERANS WHO
SERVED IN VICINITY OF REPUBLIC OF VIETNAM.
(a) In General.--Chapter 11 of title 38, United States Code, is
amended by inserting after section 1116 the following new section:
``Sec. 1116A. Presumptions of service connection for veterans who
served in the territorial seas of the Republic of
Vietnam
``(a) Service Connection.--For the purposes of section 1110 of this
title, and subject to section 1113 of this title, a disease covered by
section 1116 of this title becoming manifest as specified in that
section in a veteran who, during active military, naval, or air
service, served in the territorial seas of the Republic of Vietnam
during the period beginning on January 9, 1962, and ending on May 7,
1975, shall be considered to have been incurred in or aggravated by
such service, notwithstanding that there is no record of evidence of
such disease during the period of such service.
``(b) Exposure.--A veteran who, during active military, naval, or air
service, served in the territorial seas of the Republic of Vietnam
during the period beginning on January 9, 1962, and ending on May 7,
1975, shall be presumed to have been exposed during such service to an
herbicide agent containing dioxin or 2,4-dichlorophenoxyacetic acid,
and may be presumed to have been exposed during such service to any
other chemical compound in an herbicide agent, unless there is
affirmative evidence to establish that the veteran was not exposed to
any such agent during that service.
``(c) Effective Date of Award.--(1) Except as provided by paragraph
(2), the effective date of an award under this section shall be
determined in accordance with section 5110 of this title.
``(2)(A) Notwithstanding subsection (g) of section 5110 of this
title, the Secretary shall determine the effective date of an award
based on a claim under this section for a veteran described in
subparagraph (B) by treating the date on which the veteran filed the
prior claim specified in clause (i) of such subparagraph as the date on
which the veteran filed the claim so awarded under this section.
``(B) A veteran described in this subparagraph is a veteran who meets
the following criteria:
``(i) The veteran submitted a claim for disability
compensation on or after September 25, 1985, and before January
1, 2019, for a disease covered by this section, and the claim
was denied by reason of the claim not establishing that the
disease was incurred or aggravated by the service of the
veteran.
``(ii) The veteran submits a claim for disability
compensation on or after January 1, 2019, for the same
condition covered by the prior claim under clause (i), and the
claim is approved pursuant to this section.
``(d) Herbicide Agent.--In this section, the term `herbicide agent'
has the meaning given that term in section 1116 (a)(3) of this
title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
1116 the following new item:
``1116A. Presumptions of service connection for veterans who served in
the territorial seas of the Republic of Vietnam.''.
(c) Health Care.--Section 1710(e)(4) of such title is amended by
inserting ``(including the territorial seas of such Republic)'' after
``served on active duty in the Republic of Vietnam''.
(d) Outreach.--
(1) Requirement.--The Secretary of Veterans Affairs shall
conduct outreach to inform veterans described in paragraph (2)
of the ability to submit a claim for disability compensation
under section 1116A of title 38, United States Code, as added
by subsection (a).
(2) Veteran described.--A veteran described in this paragraph
is a veteran who, during active military, naval, or air
service, served in the territorial seas of the Republic of
Vietnam during the period beginning on January 9, 1962, and
ending on May 7, 1975.
(e) Reports.--Not later than January 1, 2020, and not later than
January 1, 2022, the Secretary of Veterans Affairs shall submit to the
Committees on Veterans' Affairs of the House of Representatives and the
Senate a report on claims for disability compensation under section
1116A of title 38, United States Code, as added by subsection (a). Each
report shall include the following with respect to the period covered
by the report, disaggregated by the regional offices of the Department
of Veterans Affairs:
(1) The number of claims filed under such section.
(2) The number of such claims granted.
(3) The number of such claims denied.
(f) Effective Date.--The amendments made by this section shall take
effect on January 1, 2019.
SEC. 2. PRESUMPTION OF HERBICIDE EXPOSURE FOR CERTAIN VETERANS WHO
SERVED IN KOREA.
(a) In General.--Chapter 11 of title 38, United States Code, is
amended by inserting after section 1116A, as added by section 1, the
following new section:
``Sec. 1116B. Presumption of herbicide exposure for certain veterans
who served in Korea
``(a) Presumption of Service-Connection.--(1) For the purposes of
section 1110 of this title, and subject to section 1113 of this title,
a disease specified in subsection (b) that becomes manifest as
specified in that subsection in a veteran described in paragraph (2)
shall be considered to have been incurred or aggravated in the line of
duty in the active military, naval, or air service, notwithstanding
that there is no record of evidence of such disease during the period
of such service.
``(2) A veteran described in this paragraph is a veteran who, during
active military, naval, or air service, served in or near the Korean
demilitarized zone (DMZ), during the period beginning on September 1,
1967, and ending on August 31, 1971.
``(b) Diseases.--A disease specified in this subsection is--
``(1) a disease specified in paragraph (2) of subsection (a)
of section 1116 of this title that becomes manifest as
specified in that paragraph; or
``(2) any additional disease that--
``(A) the Secretary determines in regulations
warrants a presumption of service-connection by reason
of having positive association with exposure to an
herbicide agent; and
``(B) becomes manifest within any period prescribed
in such regulations.
``(c) Herbicide Agent.--For purposes of this section, the term
`herbicide agent' has the meaning given such term in section 1821(d) of
this title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
1116A, as added by section 1, the following new item:
``1116B. Presumption of herbicide exposure for certain veterans who
served in Korea.''.
(c) Effective Date.--The amendments made by this section shall take
effect on January 1, 2019.
SEC. 3. BENEFITS FOR CHILDREN OF CERTAIN THAILAND SERVICE VETERANS BORN
WITH SPINA BIFIDA.
(a) In General.--Subchapter III of chapter 18 of title 38, United
States Code, is amended by adding at the end the following new section:
``Sec. 1822. Benefits for children of certain Thailand service veterans
born with spina bifida
``(a) Benefits Authorized.--The Secretary may provide to any child of
a veteran of covered service in Thailand who is suffering from spina
bifida the health care, vocational training and rehabilitation, and
monetary allowance required to be paid to a child of a Vietnam veteran
who is suffering from spina bifida under subchapter I of this chapter
as if such child of a veteran of covered service in Thailand were a
child of a Vietnam veteran who is suffering from spina bifida under
such subchapter.
``(b) Spina Bifida Conditions Covered.--This section applies with
respect to all forms and manifestations of spina bifida, except spina
bifida occulta.
``(c) Veteran of Covered Service in Thailand.--For purposes of this
section, a veteran of covered service in Thailand is any individual,
without regard to the characterization of that individual's service,
who--
``(1) served in the active military, naval, or air service in
Thailand, as determined by the Secretary in consultation with
the Secretary of Defense, during the period beginning on
January 9, 1962, and ending on May 7, 1975; and
``(2) is determined by the Secretary, in consultation with
the Secretary of Defense, to have been exposed to a herbicide
agent during such service in Thailand.
``(d) Herbicide Agent.--For purposes of this section, the term
`herbicide agent' means a chemical in a herbicide used in support of
United States and allied military operations in Thailand, as determined
by the Secretary in consultation with the Secretary of Defense, during
the period beginning on January 9, 1962, and ending on May 7, 1975.''.
(b) Clerical Amendments.--
(1) Subchapter heading.--The heading for subchapter III of
chapter 18 of such title is amended by inserting ``AND
THAILAND'' after ``KOREA''.
(2) Table of sections.--The table of sections at the
beginning of chapter 18 of such title is amended--
(A) by striking the item relating to subchapter III
and inserting the following new item:
``subchapter iii--children of certain korea and thailand service
veterans born with spina bifida'';
and
(B) by inserting after the item relating to section
1821 the following new item:
``1822. Benefits for children of certain Thailand service veterans born
with spina bifida.''.
(c) Report.--Not later than 180 days after the date of the enactment
of this Act, the Secretary of Veterans Affairs, in consultation with
the Secretary of Defense, shall submit to the Committees on Veterans'
Affairs of the House of Representatives and the Senate a report
identifying--
(1) the military installations of the United States located
in Thailand during the period beginning on January 9, 1962, and
ending on May 7, 1975, at which an herbicide agent (as defined
in section 1822 of title 38, United States Code, as added by
subsection (a)) was actively used; and
(2) the period of such use.
SEC. 4. REPORT ON CERTAIN GULF WAR ILLNESS STUDY.
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 House of Representatives and the Senate a
report on the findings, as of the date of the report, of the Follow-up
Study of a National Cohort of Gulf War and Gulf Era Veterans under the
epidemiology program of the Department of Veterans Affairs.
SEC. 5. LOANS GUARANTEED UNDER HOME LOAN PROGRAM OF DEPARTMENT OF
VETERANS AFFAIRS.
(a) Adjustment of Loan Limit.--Section 3703(a)(1) of title 38, United
States Code, is amended--
(1) in subparagraph (A)(i)(IV)--
(A) by striking ``the lesser of''; and
(B) by striking ``or 25 percent of the loan''; and
(2) in subparagraph (C), by striking ``Freddie Mac'' and all
that follows through the period at the end and inserting
``amount of the loan.''.
(b) Loan Fees.--Section 3729(b)(2) of such title is amended by
striking the loan fee table and inserting the following:
----------------------------------------------------------------------------------------------------------------
``Type of loan Active duty veteran Reservist Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in section 3710(a) 2.15 2.40 NA
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, 2019)
(A)(ii) Initial loan described in section 3710(a) 2.40 2.40 NA
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, 2019, and before
October 1, 2026)
(A)(iii) Initial loan described in section 2.15 2.15 NA
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, 2026, and
before October 1, 2027)
(A)(iv) Initial loan described in section 3710(a) 1.40 1.40 NA
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, 2027)
(B)(i) Subsequent loan described in section 3.30 3.30 NA
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, 2019)
(B)(ii) Subsequent loan described in section 3.80 3.80 NA
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, 2019, and before October 1, 2026)
(B)(iii) Subsequent loan described in section 3.30 3.30 NA
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, 2026, and before October 1, 2027)
(B)(iv) Subsequent loan described in section 1.25 1.25 NA
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, 2027)
(C)(i) Loan described in section 3710(a) to 1.50 1.75 NA
purchase or construct a dwelling with 5-down
(closed before January 1, 2019)
(C)(ii) Loan described in section 3710(a) to 1.75 1.75 NA
purchase or construct a dwelling with 5-down
(closed on or after January 1, 2019, and before
October 1, 2026)
(C)(iii) Loan described in section 3710(a) to 1.50 1.50 NA
purchase or construct a dwelling with 5-down
(closed on or after October 1, 2026, and before
October 1, 2027)
(C)(iv) Loan described in section 3710(a) to 0.75 0.75 NA
purchase or construct a dwelling with 5-down
(closed on or after October 1, 2027)
(D)(i) Loan described in section 3710(a) to 1.25 1.50 NA
purchase or construct a dwelling with 10-down
(closed before January 1, 2019)
(D)(ii) Loan described in section 3710(a) to 1.45 1.45 NA
purchase or construct a dwelling with 10-down
(closed on or after January 1, 2019, and before
October 1, 2026)
(D)(iii) Loan described in section 3710(a) to 1.25 1.25 NA
purchase or construct a dwelling with 10-down
(closed on or after October 1, 2026, and before
October 1, 2027)
(D)(iv) Loan described in section 3710(a) to 0.50 0.50 NA
purchase or construct a dwelling with 10-down
(closed on or after October 1, 2027)
(E) Interest rate reduction refinancing loan 0.50 0.50 NA
(F) Direct loan under section 3711 1.00 1.00 NA
(G) Manufactured home loan under section 3712 1.00 1.00 NA
(other than an interest rate reduction
refinancing loan)
(H) Loan to Native American veteran under section 1.25 1.25 NA
3762 (other than an interest rate reduction
refinancing loan)
(I) Loan assumption under section 3714 0.50 0.50 0.50
(J) Loan under section 3733(a) 2.25 2.25 2.25''.
----------------------------------------------------------------------------------------------------------------
(c) Collection of Loan Fees.--Section 3729(c) of such title is
amended--
(1) in paragraph (1), by striking ``A fee'' and inserting
``Subject to paragraph (3), a fee''; and
(2) by adding at the end the following new paragraph:
``(3) A fee shall be collected under this section from any veteran
with a service-connected disability rated as less than total, or any
surviving spouse of such a veteran, who, on or after January 1, 2019,
receives a loan in an amount that exceeds the Freddie Mac conforming
loan limit limitation determined under section 305(a)(2) of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a single-
family residence, as adjusted for the year involved.''.
(d) Effective Date.--The amendments made by this section shall apply
with respect to a loan guaranteed under section 3710 of title 38,
United States Code, on or after January 1, 2019.
(e) Guidance.--Notwithstanding section 501 of such title, the
Secretary of Veterans Affairs may issue guidance to implement this
section before prescribing new regulations under sections 3703 and 3729
of such title, as amended by subsections (a), (b), and (c).
SEC. 6. INFORMATION GATHERING FOR DEPARTMENT OF VETERANS AFFAIRS HOME
LOAN APPRAISALS.
(a) In General.--Section 3731(b) of title 38, United States Code, is
amended by adding at the end the following new paragraph:
``(3) The Secretary shall permit an appraiser on a list developed and
maintained under subsection (a)(3) to make an appraisal for the
purposes of this chapter based solely on information gathered by a
person with whom the appraiser has entered into an agreement for such
services.''.
(b) Effective Date.--The amendments made by this section shall apply
with respect to an appraisal under section 3731 of such title, on or
after January 1, 2019.
(c) Guidance.--Notwithstanding section 501 of such title, the
Secretary of Veterans Affairs may issue guidance to implement this
section before prescribing new regulations under sections 3731 of such
title, as amended by subsection (a).
Amendment in the Nature of a Substitute to H.R. 299 Offered by Mr. Roe
of Tennessee
Strike all after the enacting clause and insert the
following:
SECTION 1. CLARIFICATION OF PRESUMPTIONS OF EXPOSURE FOR VETERANS WHO
SERVED IN VICINITY OF REPUBLIC OF VIETNAM.
(a) In General.--Chapter 11 of title 38, United States Code,
is amended by inserting after section 1116 the following new
section:
``Sec. 1116A. Presumptions of service connection for veterans who
served in the territorial seas of the Republic of
Vietnam
``(a) Service Connection.--For the purposes of section 1110
of this title, and subject to section 1113 of this title, a
disease covered by section 1116 of this title becoming manifest
as specified in that section in a veteran who, during active
military, naval, or air service, served in the territorial seas
of the Republic of Vietnam during the period beginning on
January 9, 1962, and ending on May 7, 1975, shall be considered
to have been incurred in or aggravated by such service,
notwithstanding that there is no record of evidence of such
disease during the period of such service.
``(b) Exposure.--A veteran who, during active military,
naval, or air service, served in the territorial seas of the
Republic of Vietnam during the period beginning on January 9,
1962, and ending on May 7, 1975, shall be presumed to have been
exposed during such service to an herbicide agent containing
dioxin or 2,4-dichlorophenoxyacetic acid, and may be presumed
to have been exposed during such service to any other chemical
compound in an herbicide agent, unless there is affirmative
evidence to establish that the veteran was not exposed to any
such agent during that service.
``(c) Effective Date of Award.--(1) Except as provided by
paragraph (2), the effective date of an award under this
section shall be determined in accordance with section 5110 of
this title.
``(2)(A) Notwithstanding subsection (g) of section 5110 of
this title, the Secretary shall determine the effective date of
an award based on a claim under this section for a veteran
described in subparagraph (B) by treating the date on which the
veteran filed the prior claim specified in clause (i) of such
subparagraph as the date on which the veteran filed the claim
so awarded under this section.
``(B) A veteran described in this subparagraph is a veteran
who meets the following criteria:
``(i) The veteran submitted a claim for disability
compensation on or after September 25, 1985, and before
January 1, 2019, for a disease covered by this section,
and the claim was denied by reason of the claim not
establishing that the disease was incurred or
aggravated by the service of the veteran.
``(ii) The veteran submits a claim for disability
compensation on or after January 1, 2019, for the same
condition covered by the prior claim under clause (i),
and the claim is approved pursuant to this section.
``(d) Herbicide Agent.--In this section, the term `herbicide
agent' has the meaning given that term in section 1116 (a)(3)
of this title.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 1116 the following new item:
``1116A. Presumptions of service connection for veterans who served in
the territorial seas of the Republic of Vietnam.''.
(c) Health Care.--Section 1710(e)(4) of such title is amended
by inserting ``(including the territorial seas of such
Republic)'' after ``served on active duty in the Republic of
Vietnam''.
(d) Outreach.--
(1) Requirement.--The Secretary of Veterans Affairs
shall conduct outreach to inform veterans described in
paragraph (2) of the ability to submit a claim for
disability compensation under section 1116A of title
38, United States Code, as added by subsection (a).
(2) Veteran described.--A veteran described in this
paragraph is a veteran who, during active military,
naval, or air service, served in the territorial seas
of the Republic of Vietnam during the period beginning
on January 9, 1962, and ending on May 7, 1975.
(e) Reports.--Not later than January 1, 2020, and not later
than January 1, 2022, the Secretary of Veterans Affairs shall
submit to the Committees on Veterans' Affairs of the House of
Representatives and the Senate a report on claims for
disability compensation under section 1116A of title 38, United
States Code, as added by subsection (a). Each report shall
include the following with respect to the period covered by the
report, disaggregated by the regional offices of the Department
of Veterans Affairs:
(1) The number of claims filed under such section.
(2) The number of such claims granted.
(3) The number of such claims denied.
(f) Effective Date.--The amendments made by this section
shall take effect on January 1, 2019.
SEC. 2. PRESUMPTION OF HERBICIDE EXPOSURE FOR CERTAIN VETERANS WHO
SERVED IN KOREA.
(a) In General.--Chapter 11 of title 38, United States Code,
is amended by inserting after section 1116A, as added by
section 1, the following new section:
``Sec. 1116B. Presumption of herbicide exposure for certain veterans
who served in Korea
``(a) Presumption of Service-Connection.--(1) For the
purposes of section 1110 of this title, and subject to section
1113 of this title, a disease specified in subsection (b) that
becomes manifest as specified in that subsection in a veteran
described in paragraph (2) shall be considered to have been
incurred or aggravated in the line of duty in the active
military, naval, or air service, notwithstanding that there is
no record of evidence of such disease during the period of such
service.
``(2) A veteran described in this paragraph is a veteran who,
during active military, naval, or air service, served in or
near the Korean demilitarized zone (DMZ), during the period
beginning on September 1, 1967, and ending on August 31, 1971.
``(b) Diseases.--A disease specified in this subsection is--
``(1) a disease specified in paragraph (2) of
subsection (a) of section 1116 of this title that
becomes manifest as specified in that paragraph; or
``(2) any additional disease that--
``(A) the Secretary determines in regulations
warrants a presumption of service-connection by
reason of having positive association with
exposure to an herbicide agent; and
``(B) becomes manifest within any period
prescribed in such regulations.
``(c) Herbicide Agent.--For purposes of this section, the
term `herbicide agent' has the meaning given such term in
section 1821(d) of this title.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 1116A, as added by section 1, the
following new item:
``1116B. Presumption of herbicide exposure for certain veterans who
served in Korea.''.
(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 2019.
SEC. 3. BENEFITS FOR CHILDREN OF CERTAIN THAILAND SERVICE VETERANS BORN
WITH SPINA BIFIDA.
(a) In General.--Subchapter III of chapter 18 of title 38,
United States Code, is amended by adding at the end the
following new section:
``Sec. 1822. Benefits for children of certain Thailand service veterans
born with spina bifida
``(a) Benefits Authorized.--The Secretary may provide to any
child of a veteran of covered service in Thailand who is
suffering from spina bifida the health care, vocational
training and rehabilitation, and monetary allowance required to
be paid to a child of a Vietnam veteran who is suffering from
spina bifida under subchapter I of this chapter as if such
child of a veteran of covered service in Thailand were a child
of a Vietnam veteran who is suffering from spina bifida under
such subchapter.
``(b) Spina Bifida Conditions Covered.--This section applies
with respect to all forms and manifestations of spina bifida,
except spina bifida occulta.
``(c) Veteran of Covered Service in Thailand.--For purposes
of this section, a veteran of covered service in Thailand is
any individual, without regard to the characterization of that
individual's service, who--
``(1) served in the active military, naval, or air
service in Thailand, as determined by the Secretary in
consultation with the Secretary of Defense, during the
period beginning on January 9, 1962, and ending on May
7, 1975; and
``(2) is determined by the Secretary, in consultation
with the Secretary of Defense, to have been exposed to
a herbicide agent during such service in Thailand.
``(d) Herbicide Agent.--For purposes of this section, the
term `herbicide agent' means a chemical in a herbicide used in
support of United States and allied military operations in
Thailand, as determined by the Secretary in consultation with
the Secretary of Defense, during the period beginning on
January 9, 1962, and ending on May 7, 1975.''.
(b) Clerical Amendments.--
(1) Subchapter heading.--The heading for subchapter
III of chapter 18 of such title is amended by inserting
``AND THAILAND'' after ``KOREA''.
(2) Table of sections.--The table of sections at the
beginning of chapter 18 of such title is amended--
(A) by striking the item relating to
subchapter III and inserting the following new
item:
``subchapter iii--children of certain korea and thailand service
veterans born with spina bifida'';
and
(B) by inserting after the item relating to
section 1821 the following new item:
``1822. Benefits for children of certain Thailand service veterans born
with spina bifida.''.
(c) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs, in
consultation with the Secretary of Defense, shall submit to the
Committees on Veterans' Affairs of the House of Representatives
and the Senate a report identifying--
(1) the military installations of the United States
located in Thailand during the period beginning on
January 9, 1962, and ending on May 7, 1975, at which an
herbicide agent (as defined in section 1822 of title
38, United States Code, as added by subsection (a)) was
actively used; and
(2) the period of such use.
SEC. 4. REPORT ON CERTAIN GULF WAR ILLNESS STUDY.
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 House of Representatives
and the Senate a report on the findings, as of the date of the
report, of the Follow-up Study of a National Cohort of Gulf War
and Gulf Era Veterans under the epidemiology program of the
Department of Veterans Affairs.
SEC. 5. LOANS GUARANTEED UNDER HOME LOAN PROGRAM OF DEPARTMENT OF
VETERANS AFFAIRS.
(a) Adjustment of Loan Limit.--Section 3703(a)(1) of title
38, United States Code, is amended--
(1) in subparagraph (A)(i)(IV)--
(A) by striking ``the lesser of''; and
(B) by striking ``or 25 percent of the
loan''; and
(2) in subparagraph (C), by striking ``Freddie Mac''
and all that follows through the period and inserting
``amount of the loan.''.
(b) Loan Fees.--Section 3729(b)(2) of such title is amended
by striking the loan fee table and inserting the following:
----------------------------------------------------------------------------------------------------------------
``Type of loan Active duty veteran Reservist Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in section 3710(a) 2.15 2.40 NA
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, 2019)
(A)(ii) Initial loan described in section 3710(a) 2.40 2.40 NA
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, 2019, and before
October 1, 2026)
(A)(iii) Initial loan described in section 2.15 2.15 NA
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, 2026, and
before October 1, 2027)
(A)(iv) Initial loan described in section 3710(a) 1.40 1.40 NA
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, 2027)
(B)(i) Subsequent loan described in section 3.30 3.30 NA
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, 2019)
(B)(ii) Subsequent loan described in section 3.80 3.80 NA
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, 2019, and before October 1, 2026)
(B)(iii) Subsequent loan described in section 3.30 3.30 NA
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, 2026, and before October 1, 2027)
(B)(iv) Subsequent loan described in section 1.25 1.25 NA
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, 2027)
(C)(i) Loan described in section 3710(a) to 1.50 1.75 NA
purchase or construct a dwelling with 5-down
(closed before January 1, 2019)
(C)(ii) Loan described in section 3710(a) to 1.75 1.75 NA
purchase or construct a dwelling with 5-down
(closed on or after January 1, 2019, and before
October 1, 2026)
(C)(iii) Loan described in section 3710(a) to 1.50 1.50 NA
purchase or construct a dwelling with 5-down
(closed on or after October 1, 2026, and before
October 1, 2027)
(C)(iv) Loan described in section 3710(a) to 0.75 0.75 NA
purchase or construct a dwelling with 5-down
(closed on or after October 1, 2027)
(D)(i) Loan described in section 3710(a) to 1.25 1.50 NA
purchase or construct a dwelling with 10-down
(closed before January 1, 2019)
(D)(ii) Loan described in section 3710(a) to 1.45 1.45 NA
purchase or construct a dwelling with 10-down
(closed on or after January 1, 2019, and before
October 1, 2026)
(D)(iii) Loan described in section 3710(a) to 1.25 1.25 NA
purchase or construct a dwelling with 10-down
(closed on or after October 1, 2026, and before
October 1, 2027)
(D)(iv) Loan described in section 3710(a) to 0.50 0.50 NA
purchase or construct a dwelling with 10-down
(closed on or after October 1, 2027)
(E) Interest rate reduction refinancing loan 0.50 0.50 NA
(F) Direct loan under section 3711 1.00 1.00 NA
(G) Manufactured home loan under section 3712 1.00 1.00 NA
(other than an interest rate reduction
refinancing loan)
(H) Loan to Native American veteran under section 1.25 1.25 NA
3762 (other than an interest rate reduction
refinancing loan)
(I) Loan assumption under section 3714 0.50 0.50 0.50
(J) Loan under section 3733(a) 2.25 2.25 2.25''.
----------------------------------------------------------------------------------------------------------------
(c) Collection of Loan Fees.--Section 3729(c) of such title
is amended--
(1) in paragraph (1), by striking ``A fee'' and
inserting ``Subject to paragraph (3), a fee''; and
(2) by adding at the end the following new paragraph:
``(3) A fee shall be collected under this section from any
veteran with a service-connected disability rated as less than
total, or any surviving spouse of such a veteran, who, on or
after January 1, 2019, receives a loan in an amount that
exceeds the Freddie Mac conforming loan limit limitation
determined under section 305(a)(2) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a single-
family residence, as adjusted for the year involved.''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to a loan guaranteed under section
3710 of title 38, United States Code, on or after January 1,
2019.
(e) Guidance.--Notwithstanding section 501 of such title, the
Secretary of Veterans Affairs may issue guidance to implement
this section before prescribing new regulations under sections
3703 and 3729 of such title, as amended by subsections (a),
(b), and (c).
SEC. 6. INFORMATION GATHERING FOR DEPARTMENT OF VETERANS AFFAIRS HOME
LOAN APPRAISALS.
(a) In General.--Section 3731(b) of title 38, United States
Code, is amended by adding at the end the following new
paragraph:
``(3) The Secretary shall permit an appraiser on a list
developed and maintained under subsection (a)(3) to make an
appraisal for the purposes of this chapter based solely on
information gathered by a person with whom the appraiser has
entered into an agreement for such services.''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to an appraisal under section 3731 of
such title, on or after January 1, 2019.
(c) Guidance.--Notwithstanding section 501 of such title, the
Secretary of Veterans Affairs may issue guidance to implement
this section before prescribing new regulations under sections
3731 of such title, as amended by subsection (a).
Purpose and Summary
H.R. 299, as amended, would, effective January 1, 2019,
extend the presumption of exposure for purposes of entitlement
to service connection for diseases associated with exposure to
herbicide agents, such Agent Orange, to Blue Water Navy (BWN)
Vietnam veterans.\1\ Additionally, H.R. 299, as amended, would
extend the presumption of exposure to certain herbicide agents
to veterans who served in or near the Korean demilitarized zone
(DMZ) during the period beginning on September 1, 1967, and
ending on August 31, 1971.
---------------------------------------------------------------------------
\1\BWN veterans are defined as veterans who served in the
territorial seas of the Republic of Vietnam (defined below) between the
dates of January 9, 1962, and May 7, 1975.
---------------------------------------------------------------------------
Consequently, these veterans may be eligible for veteran's
benefits, such as compensation and healthcare, if they develop
a disease linked to exposure to herbicides. H.R. 299, as
amended, would require the Secretary of the Department of
Veterans Affairs (Secretary) to conduct outreach to inform such
veterans of the ability to submit a claim for disability
compensation if they develop certain diseases.
H.R. 299, as amended, would expand eligibility for U.S.
Department of Veterans Affairs (VA) benefits to certain
children with spina bifida who were born to veterans who served
in Thailand between January 9, 1962, and May 7, 1975, and were
determined by the Secretary to have been exposed to an
herbicide agent.
H.R. 299, as amended, also requires the Secretary to submit
a report to the Committees on Veterans' Affairs of the House of
Representatives and the Senate regarding the use of herbicides
in Thailand during the Vietnam era. This bill also requires VA
to submit reports to the Committees on Veterans' Affairs of the
House of Representatives and the Senate on claims filed by BWN
veterans for disability compensation under this Act.
Furthermore, the bill, as amended, would also require the
Secretary to submit an update to the Committees regarding the
Follow-up Study of a National Cohort of Gulf War and Gulf Era
Veterans, which examines the health of veterans who served in
the Gulf War in 1990-1991 and veterans who served elsewhere
during the same period.
H.R. 299, as amended, would also make improvements to VA's
Home Loan Guaranty program to ensure that veterans can use
their home loan benefit in high-cost areas and receive
appraisals in a timely and cost-efficient manner.
Representative David G. Valadao of California introduced
H.R. 299 on January 5, 2017.
Background and Need for Legislation
Toxic exposures
The Agent Orange Act of 1991 (P.L. 102-4) established the
presumption of service-connection for certain diseases
associated with exposure to herbicides for veterans who served
in the Republic of Vietnam between January 9, 1962, and May 7,
1975. This presumption simplifies the disability claim process
for veterans who may have developed conditions linked with
exposure to toxic chemicals because it may be difficult for
such veterans to prove that they were actually exposed to
herbicides. Additionally, this policy reduces the time and
expense for VA to gather evidence of service connection on a
case-by-case basis.
However, VA's current guidelines do not acknowledge that
BWN may have been injured as a result of the military's use of
Agent Orange during the Vietnam era. Instead, VA limits the
presumption to veterans who actually set foot on land in the
Republic of Vietnam or served in the country's inland
waterways. H.R. 299, as amended, would remedy this inequity by
extending the presumption of service connection for certain
conditions\2\ linked to contact with herbicides to BWN veterans
who served off the shore of Vietnam between January 9, 1962,
and May 7, 1975.
---------------------------------------------------------------------------
\2\VA currently acknowledges that the following conditions are
linked with exposure to herbicides used during the Vietnam era: AL
Amyloidosis, Chronic B-cell Leukemias, Chloracne, Diabetes Mellitus,
Hodgkin's Disease, Ischemic Heart Disease, Multiple Myeloma, Non-
Hodgkin's Lymphoma, Parkinson's Disease, Peripheral Neuropathy,
Porphyria Cutanea Tarda, Prostate Cancer, Respiratory Cancers, and Soft
Tissue Sarcomas. Accordingly, if a Vietnam veteran who served on
Vietnam soil or inland waters and develops one of these conditions, VA
automatically presumes that such condition is service-connected.
---------------------------------------------------------------------------
The bill is necessary because many veterans advocates
contend that BWN veterans likely experienced significant
exposure to defoliants during the Vietnam era. For example, it
is possible that toxic substances sprayed in Vietnam polluted
rivers and streams that ran into Vietnam's territorial seas.\3\
U.S. Naval ships used water drawn from the territorial seas to
make potable water, which BWN veterans used for drinking,
bathing, and cooking. Because BWN veterans may have been
exposed to toxic chemicals, some advocates argue that it is
unfair that veterans who served on land are eligible for VA
benefits, but those who served off the coast of Vietnam are not
eligible, even if they develop the same diseases.
---------------------------------------------------------------------------
\3\Wells, John B., Executive Director, Military-Veterans Advocacy,
Inc., Statement to the House of Representatives Committee on Veterans'
Affairs, Subcommittee on Disability Assistance and Memorial Affairs
Hearing on April 5, 2017.
---------------------------------------------------------------------------
In response to concerns raised by veterans advocates, in
2011 the Institute of Medicine (IOM) attempted to determine
whether BWN veterans experience a comparable range of exposure
to herbicides as those on the ground in Vietnam. However, the
IOM concluded that given the passage of time and lack of
sampling data collected during the conflict, there is not
enough information to conclusively determine whether Blue Water
Navy personnel actually came into contact to defoliants during
their service.\4\ IOM also determined that it is unlikely that
such data will be available in the future. As a result, VA has
decided that the lack of scientific evidence prevents the
Department from extending the presumption to BWN veterans.\5\
---------------------------------------------------------------------------
\4\Institute of Medicine (IOM), Blue Water Navy Vietnam Veterans
And Agent Orange Exposure, May 20, 2011.
\5\Shulkin, David, J., M.D., Secretary, Department of Veterans
Affairs, Statement to the House of Representatives Committee on
Veterans' Affairs Hearing on February 15, 2017.
---------------------------------------------------------------------------
Tragically, many veterans who served off the coast of the
Republic of Vietnam are now experiencing health problems that
are associated with herbicide exposure.\6\ However, since BWN
veterans do not receive the presumption, these veterans must
provide evidence of actual exposure to herbicides to
successfully file a claim for VA benefits for conditions linked
to defoliants. It is very difficult, if not impossible, for BWN
veterans to gather such evidence because their service records
may be missing or incomplete--if a contemporaneous record
documenting exposure was created in the first place. As a
result, VA often denies claims for benefits filed by BWN
veterans.
---------------------------------------------------------------------------
\6\Ibid.
---------------------------------------------------------------------------
Our nation has a solemn duty to take care of the men and
women who may have been injured during military service. In the
absence of conclusive evidence to the contrary, BWN veterans
should receive the benefit of the doubt. Therefore, Section 1
of H.R. 299, as amended, would ensure that these veterans are
eligible for benefits, such as health care and compensation if
they develop diseases that may have been caused by contact with
the herbicides that were used during the Vietnam era.
To ensure that VA construes this bill to extend the
presumption to all applicable BWN veterans who may have been
exposed to herbicides, the Committee intends that VA's
definition of ``territorial seas'' for this purpose be as broad
as possible and in accordance with international law.
Additionally, because BWN veterans have generally been
unable to successfully apply for benefits for conditions that
may have been caused by service in Vietnam due to the lack of a
presumption of exposure, Section 1 of H.R. 299, as amended,
would provide retroactive benefits for veterans who were denied
benefits between September 1, 1985, and January 1, 2019. This
provision is consistent with special effective date rules given
to Vietnam veterans who served on land or on inland waterways
under Nehmer v. United States Department of Veterans Affairs
and to ensure parity for BWN veterans.\7\ To be eligible for
retroactive benefits, a BWN veteran would be required to submit
a new claim for disability compensation on or after January 1,
2019, for the same condition that was previously denied.
---------------------------------------------------------------------------
\7\Under Nehmer, for any new conditions or diseases VA recognized
as linked to exposure to herbicides between September 25, 1985, and
September 30, 2015, VA was required to automatically readjudicate any
previously denied claims of Vietnam veterans and their survivors for
those conditions or diseases. Moreover, if the veteran was awarded
benefits, VA was required to establish that the effective date of the
claim was the date the first claim was received. See: 38 C.F.R. Sec.
3.816(c)(2)-(3). See also: Nehmer v. United States Veterans
Administration, 712 F. Supp. 1404 (N.D. Cal. 1989) (Nehmer I); Nehmer
v. United States Veterans Administration, 32 F. Supp. 2d. 1175 (N.D.
Cal. 1999) (Nehmer II); Nehmer v. Veterans Administration of the
Government of the United States, 284 F.3d 1158 (9th Cir. 2002) (Nehmer
III).
---------------------------------------------------------------------------
To ensure that veterans whose claims were previously denied
are aware of their rights under this Act, H.R. 299, as amended,
requires the Secretary to conduct outreach to inform affected
veterans, who filed a claim for benefits between September 25,
1985, and January 1, 2019, of the ability to submit a new
claim. Furthermore, the bill would mandate that VA submit a
report to the Committees on Veterans' Affairs of the House of
Representatives and the Senate on the new claims filed under
the special effective date rules by BWN veterans, on January 1,
2020, and January 1, 2022.
In 2000, the Institute of Medicine (IOM) determined there
may be a link between exposure to chemicals used in Vietnam and
spina bifida in offspring.\8\ Thus, Congress provides benefits
to children of some Vietnam era veterans who may have been
harmed by the use of defoliants, such as those who served in
Vietnam or along the Korean DMZ.\9\ However, even though VA
recognizes that some veterans who were stationed along the
perimeter of military installations in Thailand (between
January 9, 1962, and May 7, 1975), may have come into contact
with defoliants, the Department does not provide benefits to
these veterans' biological children who were born with spina
bifida. Section 3 of H.R. 299, as amended, would extend
benefits to these children if VA determines that the veteran
may have been subject to an herbicidal agent during service. To
be eligible for benefits, the child suffering from spina bifida
must have been conceived subsequent to the parent's potential
exposure.
---------------------------------------------------------------------------
\8\Institute of Medicine, Veterans and Agent Orange Update 2000
(2001).
\9\P.L. 108-183 38 U.S.C. 1802, et. seq.
---------------------------------------------------------------------------
Additionally, although Congress authorized benefits for
certain children of veterans who served in or near the Korean
DMZ between September 1, 1967, and August 31, 1971, VA's
regulations limit the presumption of exposure for veterans who
served in or near the Korean DMZ beginning April 1, 1968.\10\
As a result of VA's regulation, a veteran who was stationed
along the Korean DMZ between September 1, 1967, and March 31,
1968, is not automatically eligible for benefits if the veteran
develops a condition linked with being subjected to toxic
chemicals. Counterintuitively however, that same veteran's
child who was conceived after the veterans' service in Korea
and was born with spina bifida, may be eligible for benefits
based on possible exposure to herbicides. Section 2 of H.R.
299, as amended, would resolve this inconsistency by expanding
the presumption to include veterans who served in or near the
Korean DMZ between September 1, 1967, and April 1, 1968.
---------------------------------------------------------------------------
\10\38 C.F.R. Sec. 3.307.
---------------------------------------------------------------------------
H.R. 299, as amended, would also address concerns of
veterans who were stationed in U.S. bases in Thailand between
January 9, 1962, and May 7, 1975, but are excluded from the
current presumption. This bill would require the VA Secretary,
in consultation with the Secretary of Defense, to submit a
report to the Committees on Veterans' Affairs of the House of
Representatives and the Senate identifying the U.S. military
installations located in Thailand where an herbicide agent was
actively used and identify the period of such use.
Moreover, H.R. 299, as amended, would require the Secretary
to submit to the Committees on Veterans' Affairs of the House
of Representatives and the Senate an update on the findings of
VA's Follow-up Study of a National Cohort of Gulf War and Gulf
Era Veterans. This study examines the health status of veterans
who served in the Gulf War in 1990 and 1991 and the health of
veterans who served in other areas during the same period.
VA's home loan program
First authorized by the Servicemember's Readjustment Act of
1944, the VA Home Loan Guaranty program helps hundreds of
thousands of servicemembers and veterans, each year, purchase
their part of the American dream. In FY 2017, the VA Loan
Guaranty Service guaranteed 740,389 loans at a cost of over
$188 billion.\11\ Section 3703 of title 38, U.S.C., sets the
limit for the purchase price of a home loan that VA can
guarantee. VA's maximum loan guaranty amount is calculated as a
percentage of the Freddie Mac conforming loan limitation
determined by the Federal Home Loan Mortgage Corporation
Act\12\ which varies by location and zip code. Since in most
cases VA's guaranty must be at least 25 percent of the loan,
this means that VA's maximum loan guaranty amount is
effectively capped at the Freddie Mac limit. For many veterans
who are seeking to purchase a home in high cost areas, the
Freddie Mac limit is too low for VA's zero-down loan program.
This either forces the veteran not to use the VA program, or
pay the loan principal down.
---------------------------------------------------------------------------
\11\Fiscal Year 2019 Budget Submission, U.S. Department of Veterans
Affairs, Volume 3, ``Benefits and Burial Programs and Departmental
Administration, page 234.
\12\Section 1454(a)(2) of title 12, U.S.C.
---------------------------------------------------------------------------
To address this issue and make the home loan benefit
available to all veterans and servicemembers that qualify,
section five of this bill would amend section 3703 of title 38,
U.S.C., to eliminate the maximum loan guaranty amount under the
VA home loan program by eliminating the Freddie Mac limit for
VA home loans and would make the maximum guaranty amount 25
percent of the loan amount. This section would also require
veterans who do not have a service-connected disability of 100
percent and choose to purchase a home above the current
conforming loan limit to pay a funding fee on the cost of the
loan. The Committee is confident VA's current strict
underwriting standards and low foreclosure rates will ensure
that veterans still have the required credit and income to
qualify for the loan, and that this change will not result in a
significant increased amount of foreclosures.
Section 3729 of title 38, U.S.C., requires certain users of
VA's loan guaranty benefit to pay a funding fee. The amount of
the funding fee varies based on an individual's active duty or
reserve status, the amount of down payment brought forward, and
the date of loan origination. The rates of funding fees
(expressed as a percentage of the loan) have remained the same
since 2004. The costs of the funding fee can be rolled into the
life of the loan and can be waived if the servicemember has a
service-connected disability. These fees reduce the subsidy
cost associated with VA's guaranty of mortgage loans, and have
typically been viewed as a reasonable cost to the benefit
gained by having VA guarantee a mortgage loan. This section
would make adjustments to the home loan fee for mortgages
closed on or after January 1, 2019 through September 30, 2026.
After September 20, 2026, the rates will revert back to current
rates. The proposed rates for mortgages closed on or after
January 1, 2019 through September 30, 2026 are listed below:
------------------------------------------------------------------------
Proposed
rates for
Current all Change in
Down payment and use rates participants percent
through
FY2026
------------------------------------------------------------------------
No Money Down, 1st Use.......... 2.15% 2.40% 0.25%
5% or more, 1st Use............. 1.50% 1.75% 0.25%
10% or more, 1st Use............ 1.25% 1.45% 0.20%
Subsequent Use.................. 3.3% 3.8% 0.5%
------------------------------------------------------------------------
The Committee believes that these modest increases would
have minimal impact on the home loan market and would not
seriously limit a veteran or a servicemember's ability to use
their home loan benefit. For example, in the case of an
individual who chooses to roll the funding fee into the total
amount of their loan, assuming a home price of $232,000 and
using an interest rate of 4.5 percent on a 30 year loan, the
cost of this modest increase for initial-use loans with a zero
down payment is $2.94 per month over the course of the loan; 5
percent down is $2.82 per month; and 10 percent down is $2.14
per month. Under the same scenario for subsequent-use loans
with a zero down payment, the cost is $7.05 per month over the
course of the loan. It should also be noted that according to
VA data, out of the 589,533 VA loans expected to close this
year, approximately 42 percent, or 247,603, will not require
any loan fee due to the veteran borrower's disability rating.
The section would also eliminate the current .25 percent
premium that members of the National Guard and Reserve pay on
top of current funding fees rates. The Committee believes this
change would provide equity between the benefit provided to
these servicemembers with veterans and active duty
servicemembers.
Section 3731 of title 38, U.S.C., authorizes requirements
and processes for the use of appraisals for VA-guaranteed home
loans. This section would also establish qualifications for
appraisers who are eligible to complete appraisals for VA
loans. At the April 4, 2017 Subcommittee on Economic
Opportunity oversight hearing on VA appraisals, witnesses
described the need to improve the VA mortgage appraisal process
and ensure that veterans, especially those in highly rural
areas, have access to VA qualified appraisals to provide timely
appraisals. The Subcommittee received testimony from Mr.
Stephen S. Wagner, Vice President of the Appraisal Institute,
where he highlighted the upcoming shortage and the potential
impact on borrowers:
We anticipate a continued decline in the number of
practicing appraisers, between 20-25 percent, over the
next 5-10 years. AI data does not indicate a national
shortage of appraisers at this time, but there are
indications of temporary shortages in some markets. We
anticipate, however, that longer-term shortages will
appear going forward should the projected decline
materialize.\13\
---------------------------------------------------------------------------
\13\Testimony of Mr. Stephen S. Wagner MAI, SRA, AI-GRS, Vice
President, The Appraisal Institute at the oversight hearing of House
Committee on Veterans' Affairs, Subcommittee on Economic Opportunity,
entitled, ``Assessing VA Approved Appraisers and How to Improve the
Program for the 21st Century.'' April 4, 2017. https://docs.house.gov/
meetings/VR/VR10/20170404/105819/HHRG-115-VR10-Wstate-WagnerS-
20170404.pdf
During this same hearing, the Subcommittee received
testimony that one option to protect against this appraiser
shortage is to authorize VA appraisers to utilize new and
emerging technologies, such as the use of desktop appraisals.
At this same hearing, Mr. Russell Johnson, Chief Revenue
Officer, with Clear Capital, provided a detailed description of
---------------------------------------------------------------------------
how this new technology can help improve VA appraisals:
With the advent of new products, services and
analytics, Clear Capital suggests that the VA consider
the use of a desktop appraisal, based on the physical
inspection of a subject property by an industry
professional, where appropriate as an option by the
Department of Veterans Affairs. The product is a hybrid
of traditional appraisal process and methods and
leverages a qualified, arms-length, real estate
professional, such as a real estate broker or agent,
performing a visual inspection of the subject property
and providing other market insight and analytics.
The inspection and other market data are provided to
a geographically-competent, licensed appraiser for
analysis, along with supporting data such as real-time
MLS information, public records, and local market data
and analytics. The appraiser analyzes all the
information and data and concludes the final value of
the property.\14\
---------------------------------------------------------------------------
\14\Testimony of Mr. Russell Johnson, Chief Revenue Officer, Clear
Capital, at the oversight hearing of House Committee on Veterans
Affairs, Subcommittee on Economic Opportunity, entitled, ``Assessing VA
Approved Appraisers and How to Improve the Program for the 21st
Century.'' April 4, 2017.https://docs.house.gov/meetings/VR/VR10/
20170404/105819/HHRG-115-VR10-Wstate-JohnsonR-20170404.pdf
At a Subcommittee on Economic Opportunity legislative
hearing on March 20, 2018, Mr. Robert Worley, Director,
Education Service, U.S. Department of Veterans Affairs,
---------------------------------------------------------------------------
supported the need for new technology:
VA supports enactment of this bill, as it would
enable VA-designated appraisers to expand their
coverage areas and would increase the number of
appraisals they could perform in a timely manner. The
bill would not change the qualifications for VA-
designated appraisers, nor would it make any
substantial change to VA oversight requirements. It
would, however, better align VA appraisal policy and
procedures with industry standards, address recent
industry concerns regarding timely delivery of the VA
appraisal product, and likely encourage more use of the
VA Home Loan program by making VA financing a more
attractive option within the mortgage industry.\15\
---------------------------------------------------------------------------
\15\Testimony of Mr. Robert Worley, Director, Education Service,
U.S. Department of Veterans Affairs, at legislative hearing of House
Committee on Veterans' Affairs, Subcommittee on Economic Opportunity,
entitled, ``Legislative Hearing on H.R. 1206, H.R. 3023, H.R. 3940,
H.R. 4451, H.R. 4830, H.R. 4835, H.R. 5044, and a draft bill entitled,
``VA Home Loan Improvement Act of 2018'' March 20, 2018. https://
docs.house.gov/meetings/VR/VR10/20180320/108011/HHRG-115-VR10-Wstate-
WorleyIIUSAFR-20180320.pdf
The Committee believes the use of this new technology could
assist VA in reducing appraisal wait times and provide betters
services to veterans. Section six of this bill, therefore,
would amend section 3731(b) of title 38, U.S.C., to clarify
that a VA may permit a VA-approved appraiser to make an
appraisal based on information collected from a third party.
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. 299.
The following witnesses testified:
The Honorable Mike Bost, U.S. House of
Representatives, 12th District, Illinois; The Honorable
Julia Brownley, U.S. House of Representatives, 26th
District, California; The Honorable Jim Banks, U.S.
House of Representatives, 3rd District, Indiana; The
Honorable Jack Bergman, U.S. House of Representatives,
1st District, Michigan; The Honorable David G. Valadao,
U.S. House of Representatives, 21st District,
California; 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, 1st District, Minnesota; and, the
Paralyzed Veterans of America.
On March 20, 2018, the Subcommittee on Economic Opportunity
held a legislative hearing on several bills pending before the
Subcommittee including a draft bill which incorporated portions
of section five and six of H.R. 299, as amended.
The following witnesses testified:
The Honorable Gus Bilirakis, U.S. House of
Representatives, 12th District, Florida; The Honorable
Brad Wenstrup, U.S. House of Representatives, 2nd
District, Ohio; The Honorable Ted Poe, U.S. House of
Representatives, 2nd District, Texas; The Honorable
Luke Messer, U.S. House of Representatives 6th
District, Indiana; The Honorable Steve Russell, U.S.
House of Representatives, 5th District, Oklahoma; MG
Robert M. Worley II, USAF (Ret.), Director, Education
Service, Veterans Benefit Administration, U.S.
Department of Veterans Affairs who was accompanied by
Mr. Jeffrey London, Director, Loan Guaranty Service,
Veterans Benefits Administration, U.S. Department of
Veterans Affairs; Mr. John J. Kamin, Assistant
Director, Veterans Employment and Education Division,
The American Legion; Ms. Ashlynne Haycock, Manager,
Education Services, Tragedy Assistance Program for
Survivors; and Mr. William Hubbard, Vice President of
Government Affairs, Student Veterans of America.
Statements for the record were submitted by:
The Honorable Steve Chabot, U.S. House of
Representatives, 1st District, Ohio; the U.S.
Department of Labor; the National Association of State
Approving Agencies; and the National Association of
Veterans' Programs Administrators
Subcommittee Consideration
H.R. 299 was not considered before the Subcommittee.
Committee Consideration
On May 8, 2018, the Full Committee met in an open markup
session, a quorum being present, and ordered H.R. 299, as
amended, favorably reported to the House of Representatives by
voice vote. During consideration of the bill, the following
amendment was considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by
Representative David P. Roe of Tennessee, the Chairman of the
full committee, that would extend benefits to certain veterans
who served in or near the Korean DMZ during the Vietnam era and
to certain children of veterans who served in Thailand during
the Vietnam era; require VA to conduct certain outreach to Blue
Water Navy veterans; require VA to submit certain reports to
the Congressional Committees of jurisdiction; and, make
improvements to VA's Home Loan Guaranty program to ensure that
veterans can use their home loan benefit in high-cost areas and
receive appraisals in a timely and cost-efficient manner.
Committee Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, there were no recorded votes
taken on amendments or in connection with ordering H.R. 299, as
amended, reported to the House. A motion by Ranking Member
Timothy J. Walz of Minnesota to report H.R. 299, as amended,
favorably to the House of Representatives was adopted 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's performance
goals and objectives are to establish a presumption of service
connection for diseases associated with exposure to certain
herbicide agents to Blue Water Navy veterans who served in the
territorial seas of the Republic of Vietnam and to some
veterans who served on or near the Korean DMZ between September
1, 1967, and August 31, 1971; to expand eligibility for
benefits to certain children of Vietnam era veterans who served
in Thailand; to submit reports to the Committees on Veterans'
Affairs of the House of Representatives and the Senate
regarding claims for compensation under this act, the use of
herbicides in Thailand between January 9, 1962, and May 7,
1975, and Gulf War Illness; and, to improve veterans' and
servicemembers' access to their home loan benefits.
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. 299, 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.
299, 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. 299, as amended, provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 15, 2018.
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. 299, a bill to
amend title 38, United States Code, to clarify presumptions
relating to the exposure of certain veterans who served in the
vicinity of the Republic of Vietnam, and for other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Newman.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 299--A bill to amend title 38, United States Code, to clarify
presumptions relating to the exposure of certain veterans who
served in the vicinity of the Republic of Vietnam, and for
other purposes
Summary: H.R. 299 would modify the loan guarantee and
disability compensation programs administered by the Department
of Veterans Affairs (VA). On net, CBO estimates that enacting
the bill would decrease direct spending for those programs by
$271 million over the 2019-2028 period.
In addition, H.R. 299 would expand access to VA medical
care for certain veterans and their dependents. In total, CBO
estimates that implementing the bill would cost $136 million
over the 2019-2023 period, assuming appropriation of the
necessary amounts.
Enacting H.R. 299 would affect direct spending; therefore,
pay-as-you-go procedures apply. The bill would not affect
revenues.
CBO estimates that enacting H.R. 299 would not increase net
direct spending by more than $2.5 billion or on-budget deficits
by more than $5 billion in any of the four consecutive 10-year
periods beginning in 2029.
H.R. 299 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 299 is 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. 299, THE BLUE WATER NAVY VIETNAM VETERANS ACT OF 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019-2023 2019-2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Estimated Budget Authority................. 0 16 -3 -125 -97 -73 -49 -50 -54 69 91 -280 -271
Estimated Outlays.......................... 0 16 -3 -125 -97 -73 -49 -50 -54 69 -91 -280 -271
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level.............. 0 4 21 34 39 45 46 47 49 50 52 143 387
Estimated Outlays.......................... 0 4 19 32 38 43 45 46 48 49 51 136 375
--------------------------------------------------------------------------------------------------------------------------------------------------------
The provisions of H.R. 299 would take effect on January 1, 2019. Details do not add to totals because of rounding.
Basis of estimate: For this estimate, CBO assumes that the
estimated amounts will be appropriated each year, that outlays
will follow historical spending patterns for affected programs,
and that the bill will be enacted in 2018. The bill specifies
that the provisions would take effect on January 1, 2019.
Direct spending
H.R. 299 would make several changes to VA's loan-guarantee
benefit. It also would increase the disability compensation
paid to certain veterans who served in Southeast Asia and Korea
and their dependents. On net, enacting the bill would decrease
direct spending by $271 million (see Table 2).
Guaranteed Loans. Section 5 would modify several provisions
of current law related to VA's authority to guarantee certain
mortgages provided to veterans. In total, those changes would
decrease direct spending by almost $1.2 billion over the 2019-
2028 period.
TABLE 2--ESTIMATE OF THE EFFECTS ON DIRECT SPENDING OF H.R. 299
--------------------------------------------------------------------------------------------------------------------------------------------------------
Outlays, by fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019-2023 2019-2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Guaranteed Loans
Loan Guarantee Fees............... 0 -140 -171 -156 -141 -124 -106 -109 -112 4 5 -732 -1,050
Jumbo Loans....................... 0 -13 -19 -19 -17 -16 -14 -13 -15 -9 11 -84 -124
Home Loan Appraisals.............. 0 * 1 1 1 1 1 1 1 1 1 4 9
Subtotal Guaranteed Loan...... 0 -153 -189 -174 -157 -139 -119 -121 -126 -4 17 -812 -1,165
Disability Compensation
Blue Water Navy Veterans.......... 0 169 186 48 59 65 69 70 71 72 73 527 882
Korea DMZ Veterans................ 0 * * 1 1 1 1 1 1 1 1 3 8
Spina Bifida Benefits............. 0 * * * * * * * * * * 2 3
Subtotal Disability 0 169 186 49 60 66 70 71 72 73 74 532 894
Compensation.................
Total Changes in Direct 0 16 -3 -125 -97 -73 -49 -50 -54 69 91 -280 -271
Spending.................
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = less than $500,000; DMZ = Demilitarized Zone.
The provisions of H.R. 299 would take effect on January 1, 2019; Details may not add to totals because of rounding. Budget authority equals outlays.
Loan Guarantee Fees. Most significantly, section 5 would
change the fees that VA charges veterans for providing loan
guarantees under its home loan program. Under that program, VA
provides lenders a payment of up to 25 percent of the
outstanding mortgage balances (subject to some limitations on
the original loan amounts) in the event that a veteran defaults
on a guaranteed loan. The guarantees enable veterans to get
better loan terms, such as lower interest rates or smaller down
payments. Increasing the fees would lower the subsidy cost of
the guarantees by partially offsetting the costs of subsequent
defaults.\1\ Reducing the fees would have the opposite effect.
The subsidy cost of VA loan guarantees are paid from mandatory
appropriations. Hence, changing the subsidy cost would affect
direct spending.
---------------------------------------------------------------------------
\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 fees, 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.
---------------------------------------------------------------------------
Under current law, the up-front fee varies on the basis of
the size of the down payment and whether the veteran has
previously used the loan-guarantee benefit. Borrowers who are
members of the reserve component pay an additional fee of 0.25
percent of the loan amount. Veterans who receive compensation
for service-connected disabilities are exempt from paying the
fee. The fees that would be affected by section 5 are currently
set as follows:
2.15 percent of the loan amount for loans
with no down payment on the first use of the guarantee
benefit,
3.30 percent of the loan amount for loans
with no down payment on subsequent uses of the
guarantee benefit,
1.50 percent of the loan amount for loans
with a 5 percent down payment, and
1.25 percent of the loan amount for loans
with a 10 percent down payment.
Section 5 would increase those fees to 2.40 percent, 3.80
percent, 1.75 percent, and 1.45 percent, respectively. The fees
would rise on January 1, 2019; they would decline to the
current levels after September 30, 2026. The provision also
would permanently eliminate the additional 0.25 percent fee
charged to reservists. On the basis of our analysis of
information from VA on the number and size of loans guaranteed
in recent years, the default rate for those loans, and the
amount of fees collected, CBO estimates that the net effect of
enacting those fee changes would be to decrease direct spending
by $1.1 billion over the 2019-2028 period.
Jumbo Loans. Section 5 also would increase the maximum loan
level for which VA can provide a full guarantee. The guaranteed
payment from VA is generally capped at 25 percent of the
initial loan balance, up to the limit on loan size established
by the Federal Home Loan Mortgage Corporation Act. That limit
is currently $453,100. (Loans at or below that level are known
as conforming loans; loans in excess are called jumbo loans.
Exceptions are made to the conforming limit for certain high-
cost areas.) Under this provision, the cap would be eliminated
as of January 1, 2019, allowing VA to provide a 25 percent
guarantee on the full amount of loans. In the event that a
veteran defaulted on a jumbo loan, guarantee payments by VA
would be greater than they would under current law. Also, CBO
expects that more veterans would use the loan benefit if VA
could guarantee the full amount of all loans. Thus, raising the
amount guaranteed would increase direct spending.
However, the provision also would eliminate the fee
exemption for most disabled veterans if they take out a jumbo
loan. (Totally disabled veterans would still be exempt from
paying the fee.) Also, fees on jumbo loans would be higher as a
result of the temporary increase in loan fees discussed above.
The additional fee income from those two sources would reduce
direct spending by an amount that would more than offset the
higher guarantee payments for any loans made up to September
30, 2027. At that time, under current law, the loan fees
decline to 1.4 percent, 1.25 percent, 0.75 percent, and 0.50
percent, respectively. As a result of those lower fees, the
additional guarantees for jumbo loans would increase subsidy
costs for such loans made after that date.
Over the 2008-2011 period, VA was authorized to provide a
full guarantee on loans of up to $729,750. On the basis of
information regarding the number and value of jumbo mortgages
VA guaranteed during that period, CBO estimates that VA would
guarantee about $3 billion worth of additional loans a year
under this provision. On net, however, that change and the
changes to fees would decrease direct spending by $124 million
over the 2019-2028 period.
Home Loan Appraisals. Home appraisals for loans guaranteed
by VA must be performed by a provider that has been approved by
the department. The cost of those appraisals is paid by the
borrowers. VA reports that a shortage of approved appraisers in
some areas of the country has increased the cost of appraisals
and the time it takes to complete them. Section 6 would permit
VA-approved appraisers to base their estimates of home values
solely on information provided by third parties. That change
would allow appraisers to estimate home values without visiting
the property through the use of information from property tax
records, real estate listings, and similar sources.
On the basis of the number and the average amount of loans
that VA guarantees, CBO expects that streamlining the process
and reducing closing costs for borrowers would increase the
number of loans guaranteed by VA by a few hundred each year.
The average subsidy cost of VA loan guarantees, which are paid
from mandatory appropriations, is about $3,000. Thus,
increasing the number of loans would increase direct spending
by about $1 million each year and $9 million over the 2019-2028
period, CBO estimates.
Disability Compensation. Sections 1 and 2 would increase
compensation benefits for certain veterans who served in
Southeast Asia or Korea. In total, those changes would increase
direct spending by $894 million over the 2019-2028 period.
Those changes also would affect medical care provided to
disabled veterans and certain dependents. Those effects are
discussed below in the section on ``Spending Subject to
Appropriation.''
Blue Water Navy Veterans. Section 1 would provide
disability compensation to certain veterans who served in the
territorial seas of Vietnam during the Vietnam War. It also
would provide certain benefits to dependents or survivors of
those veterans. Prospective and retroactive payments arising
from section 1 would increase direct spending by $169 million
in 2019, and by $882 million over the 2019-2028 period, CBO
estimates.
Under current law, veterans of the Vietnam War who served
on land or in the country's inland or coastal waterways are
presumed to have been exposed to Agent Orange, a blend of
herbicides used by the Department of Defense to remove dense
tropical foliage. Generally, VA compensates veterans who have
disabilities or diseases that have been determined to be
service-connected based on military medical records and
physical examinations. However, VA presumes certain diseases,
such as type 2 diabetes, Parkinson's disease, and prostate
cancer, are a result of exposure to Agent Orange. If veterans
served during specified time periods in designated locations
where Agent Orange was used, those illnesses are presumed to be
connected to the veterans' service. The veterans only need to
provide evidence that they were in the designated locations at
the specified times.
VA does not currently presume that veterans who served in
the territorial seas of Vietnam, commonly referred to as the
``Blue Water Navy,'' have been exposed to Agent Orange. Section
1 would make those veterans eligible for a presumption of Agent
Orange exposure for purposes of disability compensation. On the
basis of information from the Department of the Navy, VA, and
other sources, CBO estimates that about 174,500 service members
served offshore during the Vietnam War. Of those personnel, CBO
estimates about 122,500 are already be eligible for Agent
Orange presumption based on information from VA regarding ships
that the agency has determined were exposed to Agent Orange.
The remainder, about 52,000 personnel, are not currently
eligible for a presumption of exposure to Agent Orange. Under
H.R. 299, those additional veterans would be presumed to have
been exposed to Agent Orange and would be eligible for
increased disability compensation if they have one of the
conditions VA has determined to be related to that exposure.
CBO estimates that about 60 percent, or 30,000, of the
52,000 offshore personnel are still living. VA reports that
about 15 percent of Vietnam veterans have service-connected
disabilities (SCD) and roughly 45 percent of those veterans
have a disease that VA considers to be caused by exposure to
Agent Orange. On that basis, CBO expects that about 2,000
veterans would have their current disability rates raised; as a
result, their disability compensation would increase by about
$8,000 per veteran in 2019. After accounting for cost-of-living
adjustments, CBO estimates that disability compensation for
veterans with existing SCDs would increase by $152 million over
the 2019-2028 period.
The remaining group of living veterans would be newly
eligible to have disabilities considered service-connected as a
result of exposure to Agent Orange. CBO expects that half--
roughly 5,700--of newly eligible veterans with related diseases
would apply to VA for a disability rating on a continuous basis
over the 2019-2023 period. New disability payments would
average $8,200 in 2019. Those payments would total $400 million
over the 2019-2028 period.
Survivors of veterans who die as a result of a SCD are
eligible to receive dependency and indemnity compensation
(DIC). Because more veterans would be designated as having
SCDs, additional survivors would receive DIC payments. On the
basis of information about the number of DIC beneficiaries, CBO
estimates the bill would result in roughly 120 additional DIC
beneficiaries by 2028. New DIC payments would total $10 million
over the 2020-2028 period, CBO estimates.
Section 1 also would authorize retroactive payments to Blue
Water Navy veterans who have previously been denied a claim for
an eligible condition that is presumed to be caused by exposure
to Agent Orange. On the basis of information from VA about the
number of veterans and survivors denied a SCD rating for Agent
Orange exposure, CBO estimates that about 3,400 veterans and
about 1,330 survivors would receive retroactive payments under
this provision. Those retroactive benefits would be paid in a
lump sum for the amount of disability compensation due to the
veteran or survivor for the period between when they first
applied for compensation or DIC and the date on which the SCD
rating is approved. CBO estimates that period would average 10
years for veterans and 8 years for survivors. Retroactive
payments would be made in 2019 and 2020 totaling nearly $320
million, CBO estimates.
Korea Demilitarized Zone Veterans. Section 2 would require
VA to provide disability compensation to certain veterans who
served at the Korea Demilitarized Zone (DMZ) at any time during
the period between September 1, 1967, and August 31, 1971.
Payments also would be made to certain survivors of those
veterans.
Under current VA regulations, veterans who served along the
Korea DMZ at any time from April 1, 1968, to August 31, 1971,
are presumed to have been exposed to Agent Orange. The bill
would extend the period for which exposure is presumed to have
occurred by seven months.
According to VA, about 1,000 veterans who served outside of
Vietnam are receiving compensation for service-connected
exposure to Agent Orange. In addition to service in Vietnam and
along the Korea DMZ, VA presumes exposure to Agent Orange if
the veteran served near the perimeter of military bases in
Thailand during the Vietnam era, at locations where Agent
Orange was tested or stored outside of Vietnam, and in a few
other locations. The agency cannot identify by specific
location the number of disability claims for Agent Orange
exposure that occurred outside of Vietnam. CBO estimates that
70 percent of those 1,000 veterans are receiving compensation
payments as a result of service along the Korea DMZ.
Because the bill would extend the eligibility dates for
service along the Korea DMZ by 13 percent, CBO estimates a
corresponding increase in the number veterans who would receive
disability compensation for exposure to Agent Orange. Those 90
veterans would receive an annual payment of about $8,200 in
2019. Additional DIC costs for survivors of those veterans
would be insignificant. In total, after accounting for
inflation, section 2 would increase direct spending by $8
million over the 2019-2028 period, CBO estimates.
Spina Bifida Benefits. VA provides monetary allowances,
vocational training, rehabilitation services, and VA-financed
health care benefits to the biological children of certain
Korea and Vietnam veterans if those children have been
diagnosed with spina bifida. Section 3 would expand eligibility
for those benefits to the children of certain veterans who
served in Thailand between January 9, 1962, and May 7, 1975. On
the basis of information from VA about the current population
of children receiving benefits for spina bifida and the number
of military personnel who served in Vietnam or Thailand, CBO
estimates that about 20 individuals per year would receive a
monetary allowance under this provision. With an average
allowance of $1,100 per month, CBO estimates that enacting
section 3 would increase direct spending by $3 million over the
2019-2028 period.
Section 3 also would provide health care benefits for those
eligible individuals. The cost of that care is discussed in the
``Spending Subject to Appropriation'' section of the estimate.
Spending subject to appropriation
CBO estimates that implementing H.R. 299 would increase
spending on VA medical care by a total of $136 million over the
2019-2023 period, assuming appropriation of the necessary
amounts (see Table 3).
TABLE 3--ESTIMATE OF THE EFFECTS ON SPENDING SUBJECT TO APPROPRIATION OF H.R. 299
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------
2018 2019 2020 2021 2022 2023 2019-2023
----------------------------------------------------------------------------------------------------------------
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Health Care for Veterans
Estimated Authorization Level.......................... 0 4 20 33 38 44 139
Estimated Outlays...................................... 0 4 18 31 37 42 132
Spina Bifida Benefits
Estimated Authorization Level.......................... 0 * 1 1 1 1 4
Estimated Outlays...................................... 0 * 1 1 1 1 4
Total Changes in Spending Subject to Appropriation
Estimated Authorization Level...................... 0 4 21 34 39 45 143
Estimated Outlays.................................. 0 4 19 32 38 43 136
----------------------------------------------------------------------------------------------------------------
The provisions of H.R. 299 would take effect on January 1, 2019.
Enacting H.R. 299 would increase spending subject to appropriation by $375 million over the 2019-2028 period.
Health Care for Veterans. As discussed above in the section
on ``Direct Spending,'' sections 1 and 2 would increase the
disability ratings of certain veterans who served in Southeast
Asia or Korea. Additionally, Blue Water Navy veterans who are
not determined to have a disability connected to exposure to
Agent Orange would become eligible to receive a higher priority
for care or become newly eligible for care in the VA health
care system. As a result, some of those veterans and certain
dependents would receive additional health care benefits from
VA.
Veterans whose service-connected disability rating is 50
percent or greater are charged lower copayments for VA medical
care than those with a lesser rated disability or no service-
connected disability. CBO expects that those lower costs would
lead veterans to use more VA-funded medical care and to
increase the portion of their medical care that is paid for by
VA. Additionally, VA prioritizes the medical treatment of
disabilities that are service-connected. Thus, CBO expects that
veterans who receive a new or increased SCD rating as a result
of presumed exposure to Agent Orange would receive more VA-
funded care than if the disability was not connected to their
service.
On the basis of data regarding participation rates in the
VA health care system, CBO estimates that under the bill about
7,400 veterans who are already enrolled in the VA health care
system would be moved to a higher priority group over the next
five years. Those veterans would receive an average of $2,600
in additional care each year. In total, health care costs for
existing enrollees would increase by $62 million over the 2019-
2023 period, CBO estimates.
In addition, CBO expects that about 4,800 veterans would
newly enroll in the VA health care system as a result of new
eligibility or heightened priority for health care over the
next five years. On the basis of health care costs for existing
enrollees, CBO estimates that those veterans would receive an
average of $4,600 in health care each year. Over the 2019-2023
period, CBO estimates that increases in health care costs for
new enrollees would total $70 million.
DIC recipients are eligible for health care through the
Civilian Health and Medical Program of the Department of
Veterans Affairs (CHAMPVA) program. CHAMPVA is an insurance
program run by the VA for dependents and survivors of certain
disabled veterans. Because the number of new DIC beneficiaries
would be small, the costs of their CHAMPVA benefits would be
insignificant.
In total, CBO estimates that, under sections 1 and 2,
spending for VA health care would increase by $132 million over
the 2019-2023 period, assuming appropriation of the necessary
amounts.
Spina Bifida Benefits. As discussed above in the section on
``Direct Spending,'' section 3 would extend eligibility for
benefits related to spina bifida to include the children of
veterans who served in Thailand between January 9, 1962, and
May 7, 1975. Those children would be eligible for health care
and certain other benefits from VA similar to those provided to
children with spina bifida of veterans who served in Vietnam.
On the basis of information from VA about the current
population of children receiving health benefits for spina
bifida relative to the number of service members who served in
Vietnam and information about the number of veterans who served
in Thailand, CBO estimates that roughly 20 people per year
would take advantage of the health care benefits, at an
estimated cost of $41,000 per beneficiary in 2019. Adjusting
for inflation, CBO estimates that providing health benefits to
this population would cost $4 million over the 2019-2023
period. The other benefits provided under this provision are
discussed in the section of the estimate titled ``Direct
Spending.''
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 the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 299 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON MAY 8, 2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------------
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2018-2023 2018-2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact.............. 0 16 -3 -125 -97 -73 -49 -50 -54 69 91 -280 -271
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in long-term direct spending and deficits: CBO
estimates that enacting H.R. 299 would not increase net direct
spending by more than $2.5 billion or on-budget deficits by
more than $5 billion in any of the four consecutive 10-year
periods beginning in 2029.
Mandates: H.R. 299 contains no intergovernmental or
private-sector mandates as defined in UMRA.
Estimate prepared by: Federal costs: Ann E. Futrell, David
Newman, and Logan Smith; Mandates: Andrew Laughlin.
Estimate reviewed by: Sarah Jennings, Chief, Defense,
International Affairs, and Veterans Affairs Unit; Leo Lex,
Deputy Assistant Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 299, 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.
299, as amended.
Constitutional Authority Statement
Pursuant to Article I, section 8 of the United States
Constitution, H.R. 299, 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. 299, 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. 299, 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. 299, as amended, contains no
directed rule making that would require the Secretary to
prescribe regulations.
Section-by-Section Analysis of the Legislation
Sec. 1. Clarification of presumptions of exposure for veterans who
served in vicinity of Republic of Vietnam
Section 1 would:
(a) Extend the presumption of exposure to herbicides
for purposes of entitlement to service connection for
certain diseases linked to exposure to herbicides to
BWN veterans who served in the territorial seas of
Vietnam between January 9, 1962, and May 7, 1975.
Veterans who filed a claim for VA benefits for diseases
and conditions VA recognizes as associated with
exposure to herbicides for benefits under this Act
between September 25, 1985, and January 1, 2019, but
were denied benefits, may file a new claim. The
effective date for the claim would be the date the
veteran filed the first claim. This section would also
define the term ``herbicide agent.''
(b) Make a clerical amendment.
(c) Amend section 1710(e)(4) to establish eligibility
for hospital care, medical services, and nursing home
care to certain veterans who served in the territorial
seas of the Republic of Vietnam.
(d) Require the Secretary to conduct outreach to
veterans who served in the territorial seas of the
Republic of Vietnam during the period beginning on
January 9, 1962, and ending on May 7, 1975, and who
filed a claim for benefits between September 25, 1985,
and January 1, 2019, of the ability to submit a new
claim.
(e) Require VA to submit reports to the Committees on
Veterans' Affairs of the House of Representatives and
the Senate on claims for disability compensation under
this section.
(f) Establish the effective date of this section as
January 1, 2019.
Sec. 2. Presumption of herbicide exposure for certain veterans who
served Korea
Section 2 would:
(a) Extend the presumption of exposure for purposes
of entitlement to service connection for certain
diseases to veterans who served in or near the Korean
DMZ between September 1, 1967, and August 31, 1971.
This section would also define the terms ``diseases''
and ``herbicide agent''
(b) Make a clerical amendment.
(c) Establish the effective date of this section as
January 1, 2019.
Sec. 3. Benefits for children of certain Thailand service veterans born
with spina bifida
Section 3 would:
(a) Extend eligibility for health care, vocational
training and rehabilitation, and monetary allowance to
any child who was born with spina bifida, if at least
one parent of such child was a veteran who served in
Thailand between January 9, 1962, and May 7, 1975, and
the Secretary determined that at least one of the
parents may have been exposed to a herbicide agent
during such service in Thailand.
(b) Make clerical amendments.
(c) Require, not later than 180 days after the date
of enactment of this Act, VA, in consultation with DOD,
to submit a report to the Committees on Veterans'
Affairs of the House of Representatives and the Senate
identifying the military installations located in
Thailand between January 9, 1962, and May 7, 1975, at
which an herbicide agent was actively used and the
period of such use.
Sec. 4. Report on certain Gulf War illness study
Section 4 would require, not later than 180 days after the
date of enactment of this Act, VA to submit to the Committees
on Veterans' Affairs of the House of Representatives and the
Senate a report on the Follow-up Study of a National Cohort of
Gulf War and Gulf Era Veterans under VA's epidemiology program.
Sec. 5. Loans guaranteed under home loan program of Department of
Veterans Affairs
Section 5 would:
(a) Amend section 3703(a) of title 38, U.S.C., to
eliminate the limitation of use of the VA home loan
program to the Freddie Mac Conforming loan limit as set
forth by section 1454(a)(2) of title 12, U.S.C.
(b) Amend section 3729(b)(2) of title 38, U.S.C., to
provide temporary increases to home loan funding rates
through FY2026. This section would also eliminate the
additional .25 percent funding fee in place for members
of the National Guard and Reserve.
(c) Amend section 3729(c) of title 38, U.S.C., to add
a new paragraph (3) to authorize that a funding fee be
collected from any veteran borrower who has a service-
connected disability rated at less than 100 percent and
choses to purchase a home above the conforming loan
limit set by section 305(a)(2) of the Federal Home Loan
Mortgage Corporation Act (section 1454(a)(2)).
(d) States that the amendments made by this section
would go into effect on January 1, 2019.
(e) Authorize, notwithstanding section 501 of title
38, U.S.C., VA to issue guidance for implementing this
section in advance of regulations.
Sec. 6. Information gathering for Department of Veterans Affairs home
loan appraisals
Section 6 would:
(a) Amend section 3731(b) of title 38, U.S.C., to
authorize VA to permit a VA approved appraiser to
complete an appraisal for a VA back loan based solely
on information gathered by a third party.
(b) States that the amendments made by this section
would go into effect on January 1, 2019.
(c) Authorize, notwithstanding section 501 of title
38, U.S.C., VA to issue guidance for implementing this
section in advance of regulations.
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 italic, 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 italic, and existing law in which no
change is proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART II--GENERAL BENEFITS
* * * * * * *
CHAPTER 11--COMPENSATION FOR SERVICE-CONNECTED DISABILITY OR DEATH
SUBCHAPTER I--GENERAL
Sec.
1101. Definitions.
* * * * * * *
SUBCHAPTER II--WARTIME DISABILITY COMPENSATION
* * * * * * *
1116A. Presumptions of service connection for veterans who served in the
territorial seas of the Republic of Vietnam.
1116B. Presumption of herbicide exposure for certain veterans who served
in Korea.
* * * * * * *
SUBCHAPTER II--WARTIME DISABILITY COMPENSATION
* * * * * * *
Sec. 1116A. Presumptions of service connection for veterans who served
in the territorial seas of the Republic of Vietnam
(a) Service Connection.--For the purposes of section 1110 of
this title, and subject to section 1113 of this title, a
disease covered by section 1116 of this title becoming manifest
as specified in that section in a veteran who, during active
military, naval, or air service, served in the territorial seas
of the Republic of Vietnam during the period beginning on
January 9, 1962, and ending on May 7, 1975, shall be considered
to have been incurred in or aggravated by such service,
notwithstanding that there is no record of evidence of such
disease during the period of such service.
(b) Exposure.--A veteran who, during active military, naval,
or air service, served in the territorial seas of the Republic
of Vietnam during the period beginning on January 9, 1962, and
ending on May 7, 1975, shall be presumed to have been exposed
during such service to an herbicide agent containing dioxin or
2,4-dichlorophenoxyacetic acid, and may be presumed to have
been exposed during such service to any other chemical compound
in an herbicide agent, unless there is affirmative evidence to
establish that the veteran was not exposed to any such agent
during that service.
(c) Effective Date of Award.--(1) Except as provided by
paragraph (2), the effective date of an award under this
section shall be determined in accordance with section 5110 of
this title.
(2)(A) Notwithstanding subsection (g) of section 5110 of this
title, the Secretary shall determine the effective date of an
award based on a claim under this section for a veteran
described in subparagraph (B) by treating the date on which the
veteran filed the prior claim specified in clause (i) of such
subparagraph as the date on which the veteran filed the claim
so awarded under this section.
(B) A veteran described in this subparagraph is a veteran who
meets the following criteria:
(i) The veteran submitted a claim for disability
compensation on or after September 25, 1985, and before
January 1, 2019, for a disease covered by this section,
and the claim was denied by reason of the claim not
establishing that the disease was incurred or
aggravated by the service of the veteran.
(ii) The veteran submits a claim for disability
compensation on or after January 1, 2019, for the same
condition covered by the prior claim under clause (i),
and the claim is approved pursuant to this section.
(d) Herbicide Agent.--In this section, the term ``herbicide
agent'' has the meaning given that term in section 1116 (a)(3)
of this title.
Sec. 1116B. Presumption of herbicide exposure for certain veterans who
served in Korea
(a) Presumption of Service-connection.--(1) For the purposes
of section 1110 of this title, and subject to section 1113 of
this title, a disease specified in subsection (b) that becomes
manifest as specified in that subsection in a veteran described
in paragraph (2) shall be considered to have been incurred or
aggravated in the line of duty in the active military, naval,
or air service, notwithstanding that there is no record of
evidence of such disease during the period of such service.
(2) A veteran described in this paragraph is a veteran who,
during active military, naval, or air service, served in or
near the Korean demilitarized zone (DMZ), during the period
beginning on September 1, 1967, and ending on August 31, 1971.
(b) Diseases.--A disease specified in this subsection is--
(1) a disease specified in paragraph (2) of
subsection (a) of section 1116 of this title that
becomes manifest as specified in that paragraph; or
(2) any additional disease that--
(A) the Secretary determines in regulations
warrants a presumption of service-connection by
reason of having positive association with
exposure to an herbicide agent; and
(B) becomes manifest within any period
prescribed in such regulations.
(c) Herbicide Agent.--For purposes of this section, the term
``herbicide agent'' has the meaning given such term in section
1821(d) of this title.
* * * * * * *
CHAPTER 17--HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE
* * * * * * *
SUBCHAPTER II--HOSPITAL, NURSING HOME, OR DOMICILIARY CARE AND MEDICAL
TREATMENT
Sec. 1710. Eligibility for hospital, nursing home, and domiciliary care
(a)(1) The Secretary (subject to paragraph (4)) shall furnish
hospital care and medical services which the Secretary
determines to be needed--
(A) to any veteran for a service-connected
disability; and
(B) to any veteran who has a service-connected
disability rated at 50 percent or more.
(2) The Secretary (subject to paragraph (4)) shall furnish
hospital care and medical services, and may furnish nursing
home care, which the Secretary determines to be needed to any
veteran--
(A) who has a compensable service-connected
disability rated less than 50 percent or, with respect
to nursing home care during any period during which the
provisions of section 1710A(a) of this title are in
effect, a compensable service-connected disability
rated less than 70 percent;
(B) whose discharge or release from active military,
naval, or air service was for a disability that was
incurred or aggravated in the line of duty;
(C) who is in receipt of, or who, but for a
suspension pursuant to section 1151 of this title (or
both a suspension and the receipt of retired pay),
would be entitled to disability compensation, but only
to the extent that such veteran's continuing
eligibility for such care is provided for in the
judgment or settlement provided for in such section;
(D) who is a former prisoner of war, who was awarded
the medal of honor under section 3741, 6241, or 8741 of
title 10 or section 491 of title 14, or who was awarded
the Purple Heart;
(E) who is a veteran of the Mexican border period or
of World War I;
(F) who was exposed to a toxic substance, radiation,
or other conditions, as provided in subsection (e); or
(G) who is unable to defray the expenses of necessary
care as determined under section 1722(a) of this title.
(3) In the case of a veteran who is not described in
paragraphs (1) and (2), the Secretary may, to the extent
resources and facilities are available and subject to the
provisions of subsections (f) and (g), furnish hospital care,
medical services, and nursing home care which the Secretary
determines to be needed.
(4) The requirement in paragraphs (1) and (2) that the
Secretary furnish hospital care and medical services, the
requirement in section 1710A(a) of this title that the
Secretary provide nursing home care, the requirement in section
1710B of this title that the Secretary provide a program of
extended care services, and the requirement in section 1745 of
this title to provide nursing home care and prescription
medicines to veterans with service-connected disabilities in
State homes shall be effective in any fiscal year only to the
extent and in the amount provided in advance in appropriations
Acts for such purposes.
(5) During any period during which the provisions of section
1710A(a) of this title are not in effect, the Secretary may
furnish nursing home care which the Secretary determines is
needed to any veteran described in paragraph (1), with the
priority for such care on the same basis as if provided under
that paragraph.
(b)(1) The Secretary may furnish to a veteran described in
paragraph (2) of this subsection such domiciliary care as the
Secretary determines is needed for the purpose of the
furnishing of medical services to the veteran.
(2) This subsection applies in the case of the following
veterans:
(A) Any veteran whose annual income (as determined
under section 1503 of this title) does not exceed the
maximum annual rate of pension that would be applicable
to the veteran if the veteran were eligible for pension
under section 1521(d) of this title.
(B) Any veteran who the Secretary determines has no
adequate means of support.
(c) While any veteran is receiving hospital care or nursing
home care in any Department facility, the Secretary may, within
the limits of Department facilities, furnish medical services
to correct or treat any non-service-connected disability of
such veteran, in addition to treatment incident to the
disability for which such veteran is hospitalized, if the
veteran is willing, and the Secretary finds such services to be
reasonably necessary to protect the health of such veteran. The
Secretary may furnish dental services and treatment, and
related dental appliances, under this subsection for a non-
service-connected dental condition or disability of a veteran
only (1) to the extent that the Secretary determines that the
dental facilities of the Department to be used to furnish such
services, treatment, or appliances are not needed to furnish
services, treatment, or appliances for dental conditions or
disabilities described in section 1712(a) of this title, or (2)
if (A) such non-service-connected dental condition or
disability is associated with or aggravating a disability for
which such veteran is receiving hospital care, or (B) a
compelling medical reason or a dental emergency requires
furnishing dental services, treatment, or appliances (excluding
the furnishing of such services, treatment, or appliances of a
routine nature) to such veteran during the period of
hospitalization under this section.
(d) In no case may nursing home care be furnished in a
hospital not under the direct jurisdiction of the Secretary
except as provided in section 1720 of this title.
(e)(1)(A) A Vietnam-era herbicide-exposed veteran is eligible
(subject to paragraph (2)) for hospital care, medical services,
and nursing home care under subsection (a)(2)(F) for any
disability, notwithstanding that there is insufficient medical
evidence to conclude that such disability may be associated
with such exposure.
(B) A radiation-exposed veteran is eligible for hospital
care, medical services, and nursing home care under subsection
(a)(2)(F) for any disease suffered by the veteran that is--
(i) a disease listed in section 1112(c)(2) of this
title; or
(ii) any other disease for which the Secretary, based
on the advice of the Advisory Committee on
Environmental Hazards, determines that there is
credible evidence of a positive association between
occurrence of the disease in humans and exposure to
ionizing radiation.
(C) Subject to paragraph (2) of this subsection, a veteran
who served on active duty between August 2, 1990, and November
11, 1998, in the Southwest Asia theater of operations during
the Persian Gulf War is eligible for hospital care, medical
services, and nursing home care under subsection (a)(2)(F) for
any disability, notwithstanding that there is insufficient
medical evidence to conclude that such disability may be
associated with such service.
(D) Subject to paragraphs (2) and (3), a veteran who served
on active duty in a theater of combat operations (as determined
by the Secretary in consultation with the Secretary of Defense)
during a period of war after the Persian Gulf War, or in combat
against a hostile force during a period of hostilities after
November 11, 1998, is eligible for hospital care, medical
services, and nursing home care under subsection (a)(2)(F) for
any illness, notwithstanding that there is insufficient medical
evidence to conclude that such condition is attributable to
such service.
(E) Subject to paragraph (2), a veteran who participated in a
test conducted by the Department of Defense Deseret Test Center
as part of a program for chemical and biological warfare
testing from 1962 through 1973 (including the program
designated as ``Project Shipboard Hazard and Defense (SHAD)''
and related land-based tests) is eligible for hospital care,
medical services, and nursing home care under subsection
(a)(2)(F) for any illness, notwithstanding that there is
insufficient medical evidence to conclude that such illness is
attributable to such testing.
(F) Subject to paragraph (2), a veteran who served on active
duty in the Armed Forces at Camp Lejeune, North Carolina, for
not fewer than 30 days during the period beginning on August 1,
1953, and ending on December 31, 1987, is eligible for hospital
care and medical services under subsection (a)(2)(F) for any of
the following illnesses or conditions, notwithstanding that
there is insufficient medical evidence to conclude that such
illnesses or conditions are attributable to such service:
(i) Esophageal cancer.
(ii) Lung cancer.
(iii) Breast cancer.
(iv) Bladder cancer.
(v) Kidney cancer.
(vi) Leukemia.
(vii) Multiple myeloma.
(viii) Myelodysplastic syndromes.
(ix) Renal toxicity.
(x) Hepatic steatosis.
(xi) Female infertility.
(xii) Miscarriage.
(xiii) Scleroderma.
(xiv) Neurobehavioral effects.
(xv) Non-Hodgkin's lymphoma.
(2)(A) In the case of a veteran described in paragraph
(1)(A), hospital care, medical services, and nursing home care
may not be provided under subsection (a)(2)(F) with respect
to--
(i) a disability that is found, in accordance with
guidelines issued by the Under Secretary for Health, to
have resulted from a cause other than an exposure
described in paragraph (4)(A)(ii); or
(ii) a disease for which the National Academy of
Sciences, in a report issued in accordance with section
3 of the Agent Orange Act of 1991, has determined that
there is limited or suggestive evidence of the lack of
a positive association between occurrence of the
disease in humans and exposure to a herbicide agent.
(B) In the case of a veteran described in subparagraph (C),
(D), (E), or (F) of paragraph (1), hospital care, medical
services, and nursing home care may not be provided under
subsection (a)(2)(F) with respect to a disability that is
found, in accordance with guidelines issued by the Under
Secretary for Health, to have resulted from a cause other than
the service or testing described in such subparagraph.
(3) In the case of care for a veteran described in paragraph
(1)(D), hospital care, medical services, and nursing home care
may be provided under or by virtue of subsection (a)(2)(F) only
during the following periods:
(A) Except as provided by subparagraph (B), with
respect to a veteran described in paragraph (1)(D) who
is discharged or released from the active military,
naval, or air service after January 27, 2003, the five-
year period beginning on the date of such discharge or
release.
(B) With respect to a veteran described in paragraph
(1)(D) who is discharged or released from the active
military, naval, or air service after January 1, 2009,
and before January 1, 2011, but did not enroll to
receive such hospital care, medical services, or
nursing home care pursuant to such paragraph during the
five-year period described in subparagraph (A), the
one-year period beginning on the date of the enactment
of the Clay Hunt Suicide Prevention for American
Veterans Act.
(C) With respect to a veteran described in paragraph
(1)(D) who is discharged or released from the active
military, naval, or air service on or before January
27, 2003, and did not enroll in the patient enrollment
system under section 1705 of this title on or before
such date, the three-year period beginning on January
27, 2008.
(4) For purposes of this subsection--
(A) The term ``Vietnam-era herbicide-exposed
veteran'' means a veteran (i) who served on active duty
in the Republic of Vietnam (including the territorial
seas of such Republic) during the during the period
beginning on January 9, 1962, and ending on May 7,
1975, and (ii) who the Secretary finds may have been
exposed during such service to dioxin or was exposed
during such service to a toxic substance found in a
herbicide or defoliant used for military purposes
during such period.
(B) The term ``radiation-exposed veteran'' has the
meaning given that term in section 1112(c)(3) of this
title.
(5) When the Secretary first provides care for veterans using
the authority provided in paragraph (1)(D), the Secretary shall
establish a system for collection and analysis of information
on the general health status and health care utilization
patterns of veterans receiving care under that paragraph. Not
later than 18 months after first providing care under such
authority, the Secretary shall submit to Congress a report on
the experience under that authority. The Secretary shall
include in the report any recommendations of the Secretary for
extension of that authority.
(f)(1) The Secretary may not furnish hospital care or nursing
home care (except if such care constitutes hospice care) under
this section to a veteran who is eligible for such care under
subsection (a)(3) of this section unless the veteran agrees to
pay to the United States the applicable amount determined under
paragraph (2) or (4) of this subsection.
(2) A veteran who is furnished hospital care or nursing home
care under this section and who is required under paragraph (1)
of this subsection to agree to pay an amount to the United
States in order to be furnished such care shall be liable to
the United States for an amount equal to--
(A) the lesser of--
(i) the cost of furnishing such care, as
determined by the Secretary; or
(ii) the amount determined under paragraph
(3) of this subsection; and
(B) before September 30, 2019, an amount equal to $10
for every day the veteran receives hospital care and $5
for every day the veteran receives nursing home care.
(3)(A) In the case of hospital care furnished during any 365-
day period, the amount referred to in paragraph (2)(A)(ii) of
this subsection is--
(i) the amount of the inpatient Medicare deductible,
plus (ii) one-half of such amount for each 90 days of
care (or fraction thereof) after the first 90 days of
such care during such 365-day period.
(B) In the case of nursing home care furnished during any
365-day period, the amount referred to in paragraph (2)(A)(ii)
of this subsection is the amount of the inpatient Medicare
deductible for each 90 days of such care (or fraction thereof)
during such 365-day period.
(C)(i) Except as provided in clause (ii) of this
subparagraph, in the case of a veteran who is admitted for
nursing home care under this section after being furnished,
during the preceding 365-day period, hospital care for which
the veteran has paid the amount of the inpatient Medicare
deductible under this subsection and who has not been furnished
90 days of hospital care in connection with such payment, the
veteran shall not incur any liability under paragraph (2) of
this subsection with respect to such nursing home care until--
(I) the veteran has been furnished, beginning with
the first day of such hospital care furnished in
connection with such payment, a total of 90 days of
hospital care and nursing home care; or
(II) the end of the 365-day period applicable to the
hospital care for which payment was made,
whichever occurs first.
(ii) In the case of a veteran who is admitted for nursing
home care under this section after being furnished, during any
365-day period, hospital care for which the veteran has paid an
amount under subparagraph (A)(ii) of this paragraph and who has
not been furnished 90 days of hospital care in connection with
such payment, the amount of the liability of the veteran under
paragraph (2) of this subsection with respect to the number of
days of such nursing home care which, when added to the number
of days of such hospital care, is 90 or less, is the difference
between the inpatient Medicare deductible and the amount paid
under such subparagraph until--
(I) the veteran has been furnished, beginning with
the first day of such hospital care furnished in
connection with such payment, a total of 90 days of
hospital care and nursing home care; or
(II) the end of the 365-day period applicable to the
hospital care for which payment was made,
whichever occurs first.
(D) In the case of a veteran who is admitted for hospital
care under this section after having been furnished, during the
preceding 365-day period, nursing home care for which the
veteran has paid the amount of the inpatient Medicare
deductible under this subsection and who has not been furnished
90 days of nursing home care in connection with such payment,
the veteran shall not incur any liability under paragraph (2)
of this subsection with respect to such hospital care until--
(i) the veteran has been furnished, beginning with
the first day of such nursing home care furnished in
connection with such payment, a total of 90 days of
nursing home care and hospital care; or
(ii) the end of the 365-day period applicable to the
nursing home care for which payment was made,
whichever occurs first.
(E) A veteran may not be required to make a payment under
this subsection for hospital care or nursing home care
furnished under this section during any 90-day period in which
the veteran is furnished medical services under paragraph (3)
of subsection (a) to the extent that such payment would cause
the total amount paid by the veteran under this subsection for
hospital care and nursing home care furnished during that
period and under subsection (g) for medical services furnished
during that period to exceed the amount of the inpatient
Medicare deductible in effect on the first day of such period.
(F) A veteran may not be required to make a payment under
this subsection or subsection (g) for any days of care in
excess of 360 days of care during any 365-calendar-day period.
(4) In the case of a veteran covered by this subsection who
is also described by section 1705(a)(7) of this title, the
amount for which the veteran shall be liable to the United
States for hospital care under this subsection shall be an
amount equal to 20 percent of the total amount for which the
veteran would otherwise be liable for such care under
subparagraphs (2)(B) and (3)(A) but for this paragraph.
(5) For the purposes of this subsection, the term ``inpatient
Medicare deductible'' means the amount of the inpatient
hospital deductible in effect under section 1813(b) of the
Social Security Act (42 U.S.C. 1395e(b)) on the first day of
the 365-day period applicable under paragraph (3) of this
subsection.
(g)(1) The Secretary may not furnish medical services (except
if such care constitutes hospice care) under subsection (a) of
this section (including home health services under section 1717
of this title) to a veteran who is eligible for hospital care
under this chapter by reason of subsection (a)(3) of this
section unless the veteran agrees to pay to the United States
in the case of each outpatient visit the applicable amount or
amounts established by the Secretary by regulation.
(2) A veteran who is furnished medical services under
subsection (a) of this section and who is required under
paragraph (1) of this subsection to agree to pay an amount to
the United States in order to be furnished such services shall
be liable to the United States, in the case of each visit in
which such services are furnished to the veteran, for an amount
which the Secretary shall establish by regulation.
(3) This subsection does not apply with respect to the
following:
(A) Home health services under section 1717 of this
title to the extent that such services are for
improvements and structural alterations.
(B) Education on the use of opioid antagonists to
reverse the effects of overdoses of specific
medications or substances.
(h) Nothing in this section requires the Secretary to furnish
care to a veteran to whom another agency of Federal, State, or
local government has a duty under law to provide care in an
institution of such government.
* * * * * * *
CHAPTER 18--BENEFITS FOR CHILDREN OF VIETNAM VETERANS AND CERTAIN OTHER
VETERANS
Sec.
SUBCHAPTER I--CHILDREN OF VIETNAM VETERANS BORN WITH SPINA BIFIDA
1802. Spina bifida conditions covered.
* * * * * * *
[SUBCHAPTER III---CHILDREN OF CERTAIN KOREA SERVICE VETERANS BORN WITH
SPINA BIFIDA]
SUBCHAPTER III--CHILDREN OF CERTAIN KOREA AND THAILAND SERVICE VETERANS
BORN WITH SPINA BIFIDA
1821. Benefits for children of certain Korea service veterans born with
spina bifida.
1822. Benefits for children of certain Thailand service veterans born
with spina bifida.
* * * * * * *
SUBCHAPTER III--CHILDREN OF CERTAIN KOREA AND THAILAND SERVICE VETERANS
BORN WITH SPINA BIFIDA
* * * * * * *
Sec. 1822. Benefits for children of certain Thailand service veterans
born with spina bifida
(a) Benefits Authorized.--The Secretary may provide to any
child of a veteran of covered service in Thailand who is
suffering from spina bifida the health care, vocational
training and rehabilitation, and monetary allowance required to
be paid to a child of a Vietnam veteran who is suffering from
spina bifida under subchapter I of this chapter as if such
child of a veteran of covered service in Thailand were a child
of a Vietnam veteran who is suffering from spina bifida under
such subchapter.
(b) Spina Bifida Conditions Covered.--This section applies
with respect to all forms and manifestations of spina bifida,
except spina bifida occulta.
(c) Veteran of Covered Service in Thailand.--For purposes of
this section, a veteran of covered service in Thailand is any
individual, without regard to the characterization of that
individual's service, who--
(1) served in the active military, naval, or air
service in Thailand, as determined by the Secretary in
consultation with the Secretary of Defense, during the
period beginning on January 9, 1962, and ending on May
7, 1975; and
(2) is determined by the Secretary, in consultation
with the Secretary of Defense, to have been exposed to
a herbicide agent during such service in Thailand.
(d) Herbicide Agent.--For purposes of this section, the term
``herbicide agent'' means a chemical in a herbicide used in
support of United States and allied military operations in
Thailand, as determined by the Secretary in consultation with
the Secretary of Defense, during the period beginning on
January 9, 1962, and ending on May 7, 1975.
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
* * * * * * *
SUBCHAPTER I--GENERAL
* * * * * * *
Sec. 3703. Basic provisions relating to loan guaranty and insurance
(a)(1)(A) Any loan to a veteran eligible for benefits under
this chapter, if made for any of the purposes specified in
section 3710 of this title and in compliance with the
provisions of this chapter, is automatically guaranteed by the
United States in an amount not to exceed the lesser of--
(i)(I) in the case of any loan of not more than
$45,000, 50 percent of the loan;
(II) in the case of any loan of more than $45,000,
but not more than $56,250, $22,500;
(III) except as provided in subclause (IV) of this
clause, in the case of any loan of more than $56,250,
the lesser of $36,000 or 40 percent of the loan; or
(IV) in the case of any loan of more than $144,000
for a purpose specified in clause (1), (2), (3), (5),
(6), or (8) of section 3710(a) of this title, [the
lesser of] the maximum guaranty amount (as defined in
subparagraph (C)) [or 25 percent of the loan]; or
(ii) the maximum amount of guaranty entitlement
available to the veteran as specified in subparagraph
(B) of this paragraph.
(B) The maximum amount of guaranty entitlement available to a
veteran for purposes specified in section 3710 of this title
shall be $36,000, or in the case of a loan described in
subparagraph (A)(i)(IV) of this paragraph, the maximum guaranty
amount (as defined in subparagraph (C)), reduced by the amount
of entitlement previously used by the veteran under this
chapter and not restored as a result of the exclusion in
section 3702(b) of this title.
(C) In this paragraph, the term ``maximum guaranty amount''
means the dollar amount that is equal to 25 percent of the
[Freddie Mac conforming loan limit limitation determined under
section 305(a)(2) of the Federal Home Loan Mortgage Corporation
Act (12 U.S.C. 1454(a)(2)) for a single-family residence, as
adjusted for the year involved.] amount of the loan.
(2)(A) Any housing loan which might be guaranteed under the
provisions of this chapter, when made or purchased by any
financial institution subject to examination and supervision by
any agency of the United States or of any State may, in lieu of
such guaranty, be insured by the Secretary under an agreement
whereby the Secretary will reimburse any such institution for
losses incurred on such loan up to 15 per centum of the
aggregate of loans so made or purchased by it.
(B) Loans insured under this section shall be made on such
other terms, conditions, and restrictions as the Secretary may
prescribe within the limitations set forth in this chapter.
(b) The liability of the United States under any guaranty,
within the limitations of this chapter, shall decrease or
increase pro rata with any decrease or increase of the amount
of the unpaid portion of the obligation.
(c)(1) Loans guaranteed or insured under this chapter shall
be payable upon such terms and conditions as may be agreed upon
by the parties thereto, subject to the provisions of this
chapter and regulations of the Secretary issued pursuant to
this chapter, and shall bear interest not in excess of such
rate as the Secretary may from time to time find the loan
market demands, except that in establishing the rate of
interest that shall be applicable to such loans, the Secretary
shall consult with the Secretary of Housing and Urban
Development regarding the rate of interest applicable to home
loans insured under section 203(b) of the National Housing Act
(12 U.S.C. 1709(b)). In establishing rates of interest under
this paragraph for one or more of the purposes described in
clauses (4) and (7) of section 3710(a) of this title, the
Secretary may establish a rate or rates higher than the rate
specified for other purposes under such section, but any such
rate may not exceed such rate as the Secretary may from time to
time find the loan market demands for loans for such purposes.
(2) The provisions of the Servicemen's Readjustment Act of
1944 which were in effect before April 1, 1958, with respect to
the interest chargeable on loans made or guaranteed under such
Act shall, notwithstanding the provisions of paragraph (1) of
this subsection, continue to be applicable--
(A) to any loan made or guaranteed before April 1,
1958; and
(B) to any loan with respect to which a commitment to
guarantee was entered into by the Secretary before
April 1, 1958.
(3) This section shall not be construed to prohibit a veteran
from paying to a lender any reasonable discount required by
such lender, when the proceeds from the loan are to be used--
(A) to refinance indebtedness pursuant to clause (5),
(8), or (9)(B)(i) of section 3710(a) of this title or
section 3712(a)(1)(F) of this title;
(B) to repair, alter, or improve a farm residence or
other dwelling pursuant to clauses (4) and (7) of
section 3710(a) of this title;
(C) to construct a dwelling or farm residence on land
already owned or to be acquired by the veteran except
where the land is directly or indirectly acquired from
a builder or developer who has contracted to construct
such dwelling for the veteran;
(D) to purchase a dwelling from a class of sellers
which the Secretary determines are legally precluded
under all circumstances from paying such a discount if
the best interest of the veteran would be so served; or
(E) to refinance indebtedness and purchase a
manufactured-home lot pursuant to section
3710(a)(9)(B)(ii) or 3712(a)(1)(G) of this title, but
only with respect to that portion of the loan used to
refinance such indebtedness.
(4)(A) In guaranteeing or insuring loans under this chapter,
the Secretary may elect whether to require that such loans bear
interest at a rate that is--
(i) agreed upon by the veteran and the mortgagee; or
(ii) established under paragraph (1).
The Secretary may, from time to time, change the election under
this subparagraph.
(B) Any veteran, under a loan described in subparagraph
(A)(i), may pay reasonable discount points in connection with
the loan. Except in the case of a loan for the purpose
specified in section 3710(a)(8), 3710(b)(7), or 3712(a)(1)(F)
of this title, discount points may not be financed as part of
the principal amount of a loan guaranteed or insured under this
chapter.
(C) Not later than 10 days after an election under
subparagraph (A), the Secretary shall transmit to the
Committees on Veterans' Affairs of the Senate and House of
Representatives a notification of the election, together with
an explanation of the reasons therefor.
(d)(1) The maturity of any housing loan at the time of
origination shall not be more than thirty years and thirty-two
days.
(2)(A) Any loan for a term of more than five years shall be
amortized in accordance with established procedure.
(B) The Secretary may guarantee loans with provisions for
various rates of amortization corresponding to anticipated
variations in family income. With respect to any loan
guaranteed under this subparagraph--
(i) the initial principal amount of the loan may not
exceed the reasonable value of the property as of the
time the loan is made; and
(ii) the principal amount of the loan thereafter
(including the amount of all interest to be deferred
and added to principal) may not at any time be
scheduled to exceed the projected value of the
property.
(C) For the purposes of subparagraph (B) of this paragraph,
the projected value of the property shall be calculated by the
Secretary by increasing the reasonable value of the property as
of the time the loan is made at a rate not in excess of 2.5
percent per year, but in no event may the projected value of
the property for the purposes of such subparagraph exceed 115
percent of such reasonable value. A loan made for a purpose
other than the acquisition of a single-family dwelling unit may
not be guaranteed under such subparagraph.
(3)(A) Any real estate housing loan (other than for repairs,
alterations, or improvements) shall be secured by a first lien
on the realty. In determining whether a loan is so secured, the
Secretary may either disregard or allow for subordination to a
superior lien created by a duly recorded covenant running with
the realty in favor of either of the following:
(i) A public entity that has provided or will provide
assistance in response to a major disaster as
determined by the President under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5121 et seq.).
(ii) A private entity to secure an obligation to such
entity for the homeowner's share of the costs of the
management, operation, or maintenance of property,
services, or programs within and for the benefit of the
development or community in which the veteran's realty
is located, if the Secretary determines that the
interests of the veteran borrower and of the Government
will not be prejudiced by the operation of such
covenant.
(B) With respect to any superior lien described in
subparagraph (A) created after June 6, 1969, the Secretary's
determination under clause (ii) of such subparagraph shall have
been made prior to the recordation of the covenant.
(e)(1) Except as provided in paragraph (2) of this
subsection, an individual who pays a fee under section 3729 of
this title, or who is exempted under section 3729(c)(1) of this
title from paying such fee, with respect to a housing loan
guaranteed or insured under this chapter that is closed after
December 31, 1989, shall have no liability to the Secretary
with respect to the loan for any loss resulting from any
default of such individual except in the case of fraud,
misrepresentation, or bad faith by such individual in obtaining
the loan or in connection with the loan default.
(2) The exemption from liability provided by paragraph (1) of
this subsection shall not apply to--
(A) an individual from whom a fee is collected (or
who is exempted from such fee) under section
3729(b)(2)(I) of this title; or
(B) a loan made for any purpose specified in section
3712 of this title.
(f) The application for or obtaining of a loan made, insured,
or guaranteed under this chapter shall not be subject to
reporting requirements applicable to requests for, or receipts
of, Federal contracts, grants, loans, loan guarantees, loan
insurance, or cooperative agreements except to the extent that
such requirements are provided for in, or by the Secretary
pursuant to, this title.
* * * * * * *
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:
[LOAN FEE TABLE
----------------------------------------------------------------------------------------------------------------
[Type of loan Active duty veteran Reservist Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in section 3710 (a) 2.00 2.75 NA
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 before January 1, 2004)
(A)(ii) Initial loan described in section 3710 2.20 2.40 NA
(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, 2004, and
before October 1, 2004)
(A)(iii) Initial loan described in section 3710 2.15 2.40 NA
(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 September 30, 2027)
(A)(iv) Initial loan described in section 3710 1.40 1.65 NA
(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 September 30, 2027)
(B)(i) Subsequent loan described in section 3710 3.30 3.30 NA
(a) to purchase or construct a dwelling with 0-
down, or any other subsequent loan described in
section 3710 (a) (closed before September 30,
2027)
(B)(ii) Subsequent loan described in section 3710 1.25 1.25 NA
(a) to purchase or construct a dwelling with 0-
down, or any other subsequent loan described in
section 3710 (a) (closed on or after September
30, 2027)
(C)(i) Loan described in section 3710 (a) to 1.50 1.75 NA
purchase or construct a dwelling with 5-down
(closed before September 30, 2027)
(C)(ii) Loan described in section 3710 (a) to 0.75 1.00 NA
purchase or construct a dwelling with 5-down
(closed on or after September 30, 2027)
(D)(i) Initial loan described in section 3710 (a) 1.25 1.50 NA
to purchase or construct a dwelling with 10-down
(closed before September 30, 2027)
(D)(ii) Initial loan described in section 3710 0.50 0.75 NA
(a) to purchase or construct a dwelling with 10-
down (closed on or after September 30, 2027)
(E) Interest rate reduction refinancing loan 0.50 0.50 NA
(F) Direct loan under section 3711 1.00 1.00 NA
(G) Manufactured home loan under section 3712 1.00 1.00 NA
(other than an interest rate reduction
refinancing loan)
(H) Loan to Native American veteran under section 1.25 1.25 NA
3762 (other than an interest rate reduction
refinancing loan)
(I) Loan assumption under section 3714 0.50 0.50 0.50
(J) Loan under section 3733 (a) 2.25 2.25 2.25]
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Type of loan Active duty veteran Reservist Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in section 3710(a) 2.15 2.40 NA
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, 2019)
(A)(ii) Initial loan described in section 3710(a) 2.40 2.40 NA
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, 2019, and before
October 1, 2026)
(A)(iii) Initial loan described in section 2.15 2.15 NA
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, 2026, and
before October 1, 2027)
(A)(iv) Initial loan described in section 3710(a) 1.40 1.40 NA
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, 2027)
(B)(i) Subsequent loan described in section 3.30 3.30 NA
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, 2019)
(B)(ii) Subsequent loan described in section 3.80 3.80 NA
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, 2019, and before October 1, 2026)
(B)(iii) Subsequent loan described in section 3.30 3.30 NA
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, 2026, and before October 1, 2027)
(B)(iv) Subsequent loan described in section 1.25 1.25 NA
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, 2027)
(C)(i) Loan described in section 3710(a) to 1.50 1.75 NA
purchase or construct a dwelling with 5-down
(closed before January 1, 2019)
(C)(ii) Loan described in section 3710(a) to 1.75 1.75 NA
purchase or construct a dwelling with 5-down
(closed on or after January 1, 2019, and before
October 1, 2026)
(C)(iii) Loan described in section 3710(a) to 1.50 1.50 NA
purchase or construct a dwelling with 5-down
(closed on or after October 1, 2026, and before
October 1, 2027)
(C)(iv) Loan described in section 3710(a) to 0.75 0.75 NA
purchase or construct a dwelling with 5-down
(closed on or after October 1, 2027)
(D)(i) Loan described in section 3710(a) to 1.25 1.50 NA
purchase or construct a dwelling with 10-down
(closed before January 1, 2019)
(D)(ii) Loan described in section 3710(a) to 1.45 1.45 NA
purchase or construct a dwelling with 10-down
(closed on or after January 1, 2019, and before
October 1, 2026)
(D)(iii) Loan described in section 3710(a) to 1.25 1.25 NA
purchase or construct a dwelling with 10-down
(closed on or after October 1, 2026, and before
October 1, 2027)
(D)(iv) Loan described in section 3710(a) to 0.50 0.50 NA
purchase or construct a dwelling with 10-down
(closed on or after October 1, 2027)
(E) Interest rate reduction refinancing loan 0.50 0.50 NA
(F) Direct loan under section 3711 1.00 1.00 NA
(G) Manufactured home loan under section 3712 1.00 1.00 NA
(other than an interest rate reduction
refinancing loan)
(H) Loan to Native American veteran under section 1.25 1.25 NA
3762 (other than an interest rate reduction
refinancing loan)
(I) Loan assumption under section 3714 0.50 0.50 0.50
(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) 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.
(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 if the veteran has
previously obtained a loan guaranteed under section
3710 or made under section 3711 of this title.
(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] Subject to paragraph (3), 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) or from a surviving spouse of any veteran
(including a person who died in the active military, naval, or
air service) who died from a service-connected disability.
(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.
(3) A fee shall be collected under this section from any
veteran with a service-connected disability rated as less than
total, or any surviving spouse of such a veteran, who, on or
after January 1, 2019, receives a loan in an amount that
exceeds the Freddie Mac conforming loan limit limitation
determined under section 305(a)(2) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a single-
family residence, as adjusted for the year involved.
* * * * * * *
Sec. 3731. Appraisals
(a) The Secretary shall--
(1) subject to subsection (b)(2) and in consultation
with appropriate representatives of institutions which
are regularly engaged in making housing loans,
prescribe uniform qualifications for appraisers,
including the successful completion of a written test,
submission of a sample appraisal, certification of an
appropriate number of years of experience as an
appraiser, and submission of recommendations from other
appraisers;
(2) use such qualifications in determining whether to
approve an appraiser to make appraisals of the
reasonable value of any property, construction,
repairs, or alterations for the purposes of this
chapter; and
(3) in consultation with local representatives of
institutions described in clause (1) of this
subsection, develop and maintain lists of appraisers
who are approved under clause (2) of this subsection to
make appraisals for the purposes of this chapter.
(b)(1) The Secretary shall select appraisers from a list
required by subsection (a)(3) of this section on a rotating
basis to make appraisals for the purposes of this chapter.
(2) If uniform qualifications become applicable for
appraisers who perform appraisals for or in connection with the
Federal Government, the qualifications required by subsection
(a)(1) of this section may be more stringent than such uniform
qualifications, but the Secretary may use no written test in
determining the qualifications of appraisers other than the
test prescribed to implement such uniform qualifications.
(3) The Secretary shall permit an appraiser on a list
developed and maintained under subsection (a)(3) to make an
appraisal for the purposes of this chapter based solely on
information gathered by a person with whom the appraiser has
entered into an agreement for such services.
(c) Except as provided in subsection (f) of this section, the
appraiser shall forward an appraisal report to the Secretary
for review. Upon receipt of such report, the Secretary shall
determine the reasonable value of the property, construction,
repairs, or alterations for purposes of this chapter, and
notify the veteran of such determination. Upon request, the
Secretary shall furnish a copy of the appraisal made of
property for the purposes of this chapter to the lender
proposing to make the loan which is to be secured by such
property and is to be guaranteed under this chapter.
(d) If a lender (other than a lender authorized under
subsection (f) of this section to determine reasonable value)--
(1) has proposed to make a loan to be guaranteed
under this chapter,
(2) has been furnished a certificate of reasonable
value of any property or of any construction, repairs,
or alterations of property which is to be the security
for such loan, and
(3) within a reasonable period prescribed by the
Secretary, has furnished to the Secretary an additional
appraisal of the reasonable value of such property,
construction, repairs, or alterations which was made by
an appraiser selected by the lender from the list
required by subsection (a)(3) of this section,
the Secretary shall consider both the initial appraisal and the
additional appraisal and shall, if appropriate, issue a revised
certificate of reasonable value of such property, construction,
repairs, or alterations.
(e)(1) In no case may a veteran be required to pay all or any
portion of the cost of the additional appraisal described in
subsection (d)(3) of this section.
(2) If a veteran, within a reasonable period prescribed by
the Secretary, has furnished to the Secretary an additional
appraisal of the reasonable value of such property,
construction, repairs, or alterations which was made by an
appraiser selected by the veteran from the list required by
subsection (a)(3) of this section, the Secretary shall consider
such appraisal, along with other appraisals furnished to the
Secretary, and shall, if appropriate, issue a revised
certificate of reasonable value of such property, construction,
repairs, or alterations.
(f)(1) Subject to the provisions of paragraphs (2) and (3) of
this subsection, the Secretary may, in accordance with
standards and procedures established in regulations prescribed
by the Secretary, authorize a lender to determine the
reasonable value of property for the purposes of this chapter
if the lender is authorized to make loans which are
automatically guaranteed under section 3702(d) of this title.
In such a case, the appraiser selected by the Secretary
pursuant to subsection (b) of this section shall submit the
appraisal report directly to the lender for review, and the
lender shall, as soon as possible thereafter, furnish a copy of
the appraisal to the veteran who is applying for the loan
concerned and to the Secretary.
(2) In exercising the authority provided in paragraph (1) of
this subsection, the Secretary shall assign a sufficient number
of personnel to carry out an appraisal-review system to
monitor, on at least a random-sampling basis, the making of
appraisals by appraisers and the effectiveness and the
efficiency of the determination of reasonable value of property
by lenders.
(4) Not later than April 30 of each year following a year in
which the Secretary authorizes lenders to determine reasonable
value of property under this subsection, the Secretary shall
submit to the Committees on Veterans' Affairs of the Senate and
the House of Representatives a report relating to the exercise
of that authority during the year in which the authority was
exercised.
(5) A report submitted pursuant to paragraph (4) of this
subsection shall include, for the period covered by each
report--
(A) the number and value of loans made by lenders
exercising the authority of this subsection;
(B) the number and value of such loans reviewed by
the appraisal-review monitors referred to in paragraph
(2) of this subsection;
(C) the number and value of loans made under this
subsection of which the Secretary received notification
of default;
(D) the amount of guaranty paid by the Secretary to
such lenders by reason of defaults on loans as to which
reasonable value was determined under this subsection;
and
(E) such recommendations as the Secretary considers
appropriate to improve the exercise of the authority
provided for in this subsection and to protect the
interests of the United States.
* * * * * * *
[all]