A bill to amend title 38, United States Code, to require the establishment in the Department of Veterans Affairs of mental illness research, education, and clinical centers, and for other purposes.

Directs the Secretary of Veterans Affairs to: (1) designate not more than five facilities of the Department of Veterans Affairs as locations for centers of mental health services research, education and training, and the development and implementation of innovative clinical activities and systems of care with respect to the delivery of such services by the Department; (2) subject to appropriations, establish and operate such centers; (3) designate one such center by January 1, 1996; and (4) ensure that such centers are located in various geographic regions.

Requires the official within the Central Office of the Veterans Health Administration (VHA) responsible for mental health and behavioral science matters to establish a panel to assess the scientific and clinical merit of proposals submitted to the Secretary for the establishment of new centers. Requires at least three centers to emphasize research into improving the quality of care provided to mentally ill veterans through the development of community-based alternatives to institutional treatment.

Requires the Under Secretary for Health of the Department to ensure that useful information produced by activities at the centers is disseminated throughout the VHA. Authorizes appropriations. Requires reports.