A bill to amend title 38, United States Code, and other provisions of law, to improve the administration of veterans' health care benefits and personnel management in the Department of Veterans Affairs, and for other purposes.

Authorizes the Secretary of the Department of Veterans Affairs (VA) to transfer a veteran under the care of the VA to a nursing home in Alaska or Hawaii when the cost to the United States of such care does not exceed 50 percent of the cost furnished by a community general hospital under contract with the VA in such States.

Provides for the reimbursement by the VA of certain medical expenses of a veteran who is a participant in a vocational rehabilitation program and is medically determined to have been in need of care or treatment to make possible such veteran's entrance into such a program, to prevent interruption of such program, or to hasten his or her return to such program.

Provides a director-scale pay category for physicians or dentists serving in a director position in the central office of the Veterans Health Services and Research Administration.

Includes physical therapists, occupational therapists, or pharmacists among positions to which temporary full-time appointments shall not exceed two years. Provides that students who have a temporary appointment and are pursuing a degree in such field may be reappointed for a period not to exceed the duration of such student's academic program.

Requires funds from the Veterans' Canteen Service Revolving Fund to be deposited only in checking accounts (currently permitted to be deposited in other interest-bearing accounts). Provides for the investment of amounts in such revolving fund not currently required for current disbursements.

Revises provisions concerning the exclusive and independent authority of the Veterans' Canteen Service within the VA.

Amends the Veterans' Benefits and Services Act of 1988 to extend through FY 1992 the authority for the pilot program of community-based residential care for homeless chronically mentally ill and other veterans. Extends certain reports concerning such program.