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The Department of Veterans Affairs (VA) amends its regulations regarding character of discharge determinations. VA proposes to modify the regulatory framework for the following offenses that currently are considered to have been issued under dishonorable conditions: persistent and willful misconduct, offenses involving moral turpitude, and homosexual acts involving aggravating circumstances or other factors affecting performance of duty. VA also proposes to extend a compelling circumstances exception to certain regulatory bars to benefits in order to ensure fair character of discharge determinations in light of all pertinent factors.