Veterans and Survivors’ Benefits Expansion Act of 2002

                                 AN ACT

  To amend title 38, United States Code, to provide a cost-of-living
    increase in the rates of compensation for veterans with service-
  connected disability and dependency and indemnity compensation for
  surviving spouses of such veterans, to expand certain benefits for
         veterans and their survivors, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans' and Survivors' Benefits
Expansion Act of 2002''.

SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION AND DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) Rate Adjustment.--The Secretary of Veterans Affairs shall,
effective on December 1, 2002, increase the dollar amounts in effect
for the payment of disability compensation and dependency and indemnity
compensation by the Secretary, as specified in subsection (b).
    (b) Amounts To Be Increased.--The dollar amounts to be increased
pursuant to subsection (a) are the following:
            (1) Compensation.--Each of the dollar amounts in effect
        under section 1114 of title 38, United States Code.
            (2) Additional compensation for dependents.--Each of the
        dollar amounts in effect under sections 1115(1) of such title.
            (3) Clothing allowance.--The dollar amount in effect under
        section 1162 of such title.
            (4) New dic rates.--The dollar amounts in effect under
        paragraphs (1) and (2) of section 1311(a) of such title.
            (5) Old dic rates.--Each of the dollar amounts in effect
        under section 1311(a)(3) of such title.
            (6) Additional dic for surviving spouses with minor
        children.--The dollar amount in effect under section 1311(b) of
        such title.
            (7) Additional dic for disability.--The dollar amounts in
        effect under sections 1311(c) and 1311(d) of such title.
            (8) DIC for dependent children.--The dollar amounts in
        effect under sections 1313(a) and 1314 of such title.
    (c) Determination of Increase.--(1) The increase under subsection
(a) shall be made in the dollar amounts specified in subsection (b) as
in effect on November 30, 2002.
    (2) Except as provided in paragraph (3), each such amount shall be
increased by the same percentage as the percentage by which benefit
amounts payable under title II of the Social Security Act (42 U.S.C.
401 et seq.) are increased effective December 1, 2002, as a result of a
determination under section 215(i) of such Act (42 U.S.C. 415(i)).
    (3) Each dollar amount increased pursuant to paragraph (2) shall,
if not a whole dollar amount, be rounded down to the next lower whole
dollar amount.
    (d) Special Rule.--The Secretary may adjust administratively,
consistent with the increases made under subsection (a), the rates of
disability compensation payable to persons within the purview of
section 10 of Public Law 85-857 (72 Stat. 1263) who are not in receipt
of compensation payable pursuant to chapter 11 of title 38, United
States Code.
    (e) Publication of Adjusted Rates.--At the same time as the matters
specified in section 215(i)(2)(D) of the Social Security Act (42 U.S.C.
415(i)(2)(D)) are required to be published by reason of a determination
made under section 215(i) of such Act during fiscal year 2003, the
Secretary of Veterans Affairs shall publish in the Federal Register the
amounts specified in subsection (b), as increased pursuant to that
section.

SEC. 3. RETENTION OF DEPENDENCY AND INDEMNITY COMPENSATION FOR
              SURVIVING SPOUSES REMARRYING AFTER AGE 65.

    (a) Exception to Termination of Benefits Upon Remarriage.--
Paragraph (2) of section 103(d) of title 38, United States Code, is
amended by striking ``if the remarriage'' and all that follows and
inserting ``if--
            ``(A) the remarriage occurs after the surviving spouse
        attains age 65;
            ``(B) the remarriage has been terminated by death; or
            ``(C) the remarriage has been terminated by divorce, unless
        the Secretary determines that the divorce was secured through
        fraud or collusion.''.
    (b) Conforming Amendments.--Paragraph (4) of such section is
amended--
            (1) by striking ``The first month'' and all the follows
        through ``shall be'' and inserting the following ``When
        eligibility for benefits for a surviving spouse is restored by
        reason of this subsection, the first month of eligibility for
        such benefits shall be''; and
            (2) in subparagraph (A), by striking ``described in'' and
        inserting ``with a remarriage described in subparagraph (B) or
        (C) of''.
    (c) Inclusion of Death Compensation Among Restored Benefits.--
Subparagraph (A) of paragraph (5) of such section is amended to read as
follows:
            ``(A) Sections 1121 and 1311, relating to death
        compensation and dependency and indemnity compensation,
        respectively.''.
    (d) Application for Benefits.--In the case of an individual who but
for having remarried would be eligible for dependency and indemnity
compensation under section 1311 of title 38, United States Code, or
death compensation under section 1121 of such title, and whose
remarriage was before the date of the enactment of this Act and after
the individual had attained age 65, the individual shall be eligible
for such compensation by reason of the amendments made by subsection
(a) only if the individual submits an application for such compensation
to the Secretary of Veterans Affairs not later than the end of the one-
year period beginning on the date of the enactment of this Act.
    (e) Coordination of Benefits.--Section 1311 of such title is
amended by adding at the end the following new subsection:
    ``(e) In the case of an individual who is eligible for dependency
and indemnity compensation under this section by reason of section
103(d)(2)(A) of this title who is also eligible for benefits under
another provision of law by reason of such individual's status as the
surviving spouse of a veteran, then, notwithstanding any other
provision of law, no reduction in benefits under such other provision
of law shall be made by reason of such individual's eligibility for
benefits under this section.''.

SEC. 4. UNIFORM HOME LOAN GUARANTY FEES FOR QUALIFYING MEMBERS OF THE SELECTED RESERVE AND ACTIVE DUTY VETERANS.

    (a) In General.--Paragraph (2) of section 3729(b) of title 38,
United States Code, is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by inserting ``for any loan closed after September 30,
        2005'' after ``paragraph (1)''; and
            (3) by adding at the end the following:
    ``(B) The loan fee table referred to in paragraph (1) for any loan
closed during the period beginning on October 1, 2002, and ending on
September 30, 2005, is as follows:

                            ``LOAN FEE TABLE
------------------------------------------------------------------------
            Type of loan                   Veteran        Other obligor
------------------------------------------------------------------------
(A)(i) Initial loan described in                 2.00                NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down,
 or any other initial loan described
 in section 3710(a) other than with
 5-down or 10-down (closed before
 October 1, 2008)...................
------------------------------------------------------------------------
(A)(ii) Initial loan described in                1.25                NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down,
 or any other initial loan described
 in section 3710(a) other than with
 5-down or 10-down (closed on or
 after October 1, 2008).............
------------------------------------------------------------------------
(B)(i) Subsequent loan described in              3.00                NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down,
 or any other subsequent loan
 described in section 3710(a)
 (closed before October 1, 2008)....
------------------------------------------------------------------------
(B)(ii) Subsequent loan described in             1.25                NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down,
 or any other subsequent loan
 described in section 3710(a)
 (closed on or after October 1,
 2008)..............................
------------------------------------------------------------------------
(C)(i) Loan described in section                 1.50                NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed before
 October 1, 2008)...................
------------------------------------------------------------------------
(C)(ii) Loan described in section                0.75                NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after October 1, 2008).............
------------------------------------------------------------------------
(D)(i) Initial loan described in                 1.25                NA
 section 3710(a) to purchase or
 construct a dwelling with 10-down
 (closed before October 1, 2008)....
------------------------------------------------------------------------
(D)(ii) Initial loan described in                0.50                NA
 section 3710(a) to purchase or
 construct a dwelling with 10-down
 (closed on or after October 1,
 2008)..............................
------------------------------------------------------------------------
(E) Interest rate reduction                      0.50                NA
 refinancing loan...................
------------------------------------------------------------------------
(F) Direct loan under section 3711..             1.00                NA
------------------------------------------------------------------------
(G) Manufactured home loan under                 1.00                NA
 section 3712 (other than an
 interest rate reduction refinancing
 loan)..............................
------------------------------------------------------------------------
(H) Loan to Native American veteran              1.25                NA
 under section 3762 (other than an
 interest rate reduction refinancing
 loan)..............................
------------------------------------------------------------------------
(I) Loan assumption under section                0.50              0.50
 3714...............................
------------------------------------------------------------------------
(J) Loan under section 3733(a)......             2.25           2.25''.
------------------------------------------------------------------------


    (b) Conforming Amendment.--Paragraph (4)(A) of such section is
amended by inserting before the period at the end the following: ``,
and the term `veteran' means any veteran eligible for the benefits of
this chapter''.

SEC. 5. LIFE INSURANCE PROGRAMS.

    (a) Increase of Veterans' Mortgage Life Insurance Coverage to
$150,000.--(1) Section 2106(b) of title 38, United States Code, is
amended by striking ``$90,000'' and inserting ``$150,000''.
    (2) The amendment made by paragraph (1) shall apply with respect to
insurance payable under section 2106 of title 38, United States Code,
in the case of a veteran insured under that section who dies on or
after the date of enactment of this Act.
    (b) Authority for Veterans' Mortgage Life Insurance To Be Carried
Beyond Age 70.--Section 2106 of such title is amended--
            (1) in subsection (a), by inserting ``age 69 or younger''
        after ``any eligible veteran''; and
            (2) in subsection (i), by striking paragraph (2) and
        redesignating paragraphs (3) and (4) as paragraphs (2) and (3),
        respectively.

SEC. 6. INCREASE IN AGGREGATE ANNUAL AMOUNT AVAILABLE FOR STATE
              APPROVING AGENCIES FOR ADMINISTRATIVE EXPENSES FOR FISCAL
              YEARS 2003, 2004, AND 2005.

    Section 3674(a)(4) of title 38, United States Code, is amended by
inserting before the period at the end of the first sentence the
following: ``, and for each of fiscal years 2003, 2004, and 2005,
$18,000,000''.
 

Passed the House of Representatives May 21, 2002.