[Congressional Record Volume 142, Number 104 (Tuesday, July 16, 1996)]
[House]
[Pages H7557-H7563]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    VETERANS' EDUCATION AND COMPENSATION BENEFITS AMENDMENTS OF 1996

  Mr. STUMP. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 3674) to amend title 38, United States Code, to clarify the 
causal relationship required between a veteran's service-connected 
disability and employment handicap for purposes of determining 
eligibility for training and rehabilitation assistance, to transfer 
certain educational assistance entitlements from the Post-Vietnam Era 
Educational Assistance Program to the Montgomery GI bill, and for other 
purposes, as amended.
  The Clerk read as follows:

                               H.R. 3674

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

     SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
                   CODE.

       (a) Short Title.--This Act may be cited as the ``Veterans' 
     Education and Compensation Benefits Amendments of 1996''.
       (b) References.--Except as otherwise expressly provided, 
     whenever in this Act an amendment is expressed in terms of an 
     amendment to a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of title 38, United States Code.
                 TITLE I--VETERANS' EDUCATION PROGRAMS

     SEC. 101. EMPLOYMENT HANDICAP FOR WHICH AN INDIVIDUAL MAY 
                   RECEIVE TRAINING AND REHABILITATION ASSISTANCE.

       (a) Definitions.--Section 3101 is amended--
       (1) in paragraph (1), by inserting ``, resulting in 
     substantial part from a disability described in section 
     3102(1)(A) of this title,'' after ``impairment'';
       (2) in paragraph (6), by inserting ``authorized under 
     section 3120 of this title'' after ``assistance''; and
       (3) in paragraph (7), by inserting ``, resulting in 
     substantial part from a service-connected disability rated at 
     10 percent or more,'' after ``impairment''.
       (b) Basic Entitlement.--Section 3102 is amended--
       (1) in paragraph (1)(A)(i), by striking out ``which is'' 
     and all that follows through ``chapter 11 of this title'' and 
     inserting in lieu thereof ``rated at 20 percent or more'';
       (2) in paragraph (2)(A), by striking out ``which is'' and 
     all that follows through ``chapter 11 of this title'' and 
     inserting in lieu thereof ``rated at 10 percent''; and
       (3) by amending paragraph (2)(B) to read as follows:
       ``(B) is determined by the Secretary to be in need of 
     rehabilitation because of a serious employment handicap.''.
       (c) Periods of Eligibility.--Section 3103 is amended--
       (1) in subsection (b)(3), by striking out ``described in 
     section 3102(1)(A)(i) of this title'' and inserting in lieu 
     thereof ``rated at 10 percent or more'';
       (2) in subsection (c)--
       (A) in the matter preceding paragraph (1), by striking out 
     ``particular'' and inserting in lieu thereof ``current''; and
       (B) in paragraph (2), by striking out ``veteran's 
     employment'' and inserting in lieu thereof ``veteran's 
     current employment''; and
       (3) in subsection (d), by striking out ``under this 
     chapter'' and inserting in lieu thereof ``in accordance with 
     the provisions of section 3120 of this title''.
       (d) Scope of Services and Assistance.--Section 3104 is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking out ``such veteran's disability or 
     disabilities cause'' and inserting in lieu thereof ``the 
     veteran has an employment handicap or''; and
       (ii) by inserting ``reasonably'' after ``goal is'';
       (B) in paragraph (7)(A)--
       (i) by striking out ``(i)''; and
       (ii) by striking out ``, and (ii)'' and all that follows 
     through ``such Act''; and
       (C) in paragraph (12), by striking out ``For the most 
     severely disabled veterans requiring'' and inserting in lieu 
     thereof ``For veterans with the most severe service-connected 
     disabilities who require''; and
       (2) by striking out subsection (b) and redesignating 
     subsection (c) as subsection (b).
       (e) Duration of Rehabilitation Programs.--Paragraph (1) of 
     section 3105(c) is amended by striking out ``veteran's 
     employment'' and inserting in lieu thereof ``veteran's 
     current employment''.
       (f) Initial and Extended Evaluations; Determinations 
     Regarding Serious Employment Handicap.--(1) Section 3106 is 
     amended--
       (A) in subsection (a), by striking out ``described in 
     clause (i) or (ii) of section 3102(1)(A) of this title'' and 
     inserting in lieu thereof ``rated at 10 percent or more'';
       (B) in subsection (b), by striking out ``counseling in 
     accordance with'';
       (C) in subsection (c), by striking out ``with extended'' 
     and inserting in lieu thereof ``with an extended''; and
       (D) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively, and inserting after subsection (c) 
     the following new subsection:
       ``(d) In any case in which the Secretary has determined 
     that a veteran has a serious employment handicap and also 
     determines, following such initial and any such extended 
     evaluation, that achievement of a vocational goal currently 
     is not reasonably feasible, the Secretary shall determine 
     whether the veteran is capable of participating in a program 
     of independent living services and assistance under section 
     3120 of this title.''.
       (2) Chapter 31 is amended--
       (A) in section 3107(c)(2), by striking out ``3106(e)'' and 
     inserting in lieu thereof ``3106(f)'';
       (B) in section 3109, by striking out ``3106(d)'' and 
     inserting in lieu thereof ``3106(e)'';
       (C) in section 3118(c), by striking out ``3106(e)'' and 
     inserting in lieu thereof ``3106(f)''; and
       (D) in section 3120(b), by striking out ``3106(d)'' and 
     inserting in lieu thereof ``3106(d) or (e)''.
       (g) Allowances.--Section 3108 is amended--
       (1) in subsection (a)(2), by striking out ``following the 
     conclusion of such pursuit'' and inserting in lieu thereof 
     ``while satisfactorily following a program of employment 
     services provided under section 3104(a)(5) of this title''; 
     and
       (2) in subsection (f)(1)--
       (A) in subparagraph (A)--
       (i) by inserting ``eligible for and'' after ``veteran is'';
       (ii) by striking out ``chapter 30 or 34'' and inserting in 
     lieu thereof ``chapter 30''; and
       (iii) by striking out ``either chapter 30 or chapter 34'' 
     and inserting in lieu thereof ``chapter 30''; and
       (B) in subparagraph (B), by striking out ``chapter 30 or 
     34'' and inserting in lieu thereof ``chapter 30''.
       (h) Employment Assistance.--Paragraph (1) of section 
     3117(a) is amended by inserting ``rated at 10 percent or 
     more'' after ``disability''.
       (i) Program of Independent Living Services and 
     Assistance.--Section 3120 is amended--
       (1) in subsection (b), by striking out ``service-connected 
     disability described in section 3102(1)(A)'' and inserting in 
     lieu thereof ``serious employment handicap resulting in 
     substantial part from a service-connected disability 
     described in section 3102(1)(A)(i)''; and
       (2) in subsection (d), by striking out ``and (b)''.
       (j) Effective Date.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall take effect on 
     the date of the enactment of this Act.
       (2) The amendments made by subsection (a) (other than 
     paragraph (2)), subsection (d) (other than subparagraphs (A) 
     and (B) of paragraph (1)), and subsection (i) shall only 
     apply with respect to claims of eligibility or entitlement to 
     services and assistance (including claims for extension of 
     such services and assistance) under chapter 31 of title 38, 
     United States Code, received by the Secretary on or after the 
     date of the enactment of this Act, including those claims 
     based on original applications, and applications seeking to 
     reopen, revise, reconsider, or otherwise adjudicate or 
     readjudicate on any basis claims for services and assistance 
     under such chapter.

     SEC. 102. INCREASE IN BASIC MONTGOMERY GI BILL RATES.

       (a) In General.--Section 3015 is amended--

[[Page H7558]]

       (1) in subsection (a)(1), by striking out ``$400'' and 
     inserting in lieu thereof ``$421.62''; and
       (2) in subsection (b)(1), by striking out ``$325'' and 
     inserting in lieu thereof ``$343.51''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 1996.

     SEC. 103. ENROLLMENT OF CERTAIN VEAP PARTICIPANTS IN 
                   MONTGOMERY GI BILL.

       (a) In General.--Subchapter II of chapter 30 is amended by 
     inserting after section 3018B the following new section:

     ``Sec. 3018C. Opportunity for certain VEAP participants to 
       enroll

       ``(a) Notwithstanding any other provision of law, an 
     individual who--
       ``(1) is a participant on the date of the enactment of the 
     Veterans' Education and Compensation Benefits Amendments of 
     1996 in the educational benefits program provided by chapter 
     32;
       ``(2) is serving on active duty (excluding the periods 
     referred to in section 3202(1)(C)) on such date;
       ``(3) before applying for benefits under this section, has 
     completed the requirements of a secondary school diploma (or 
     equivalency certificate) or has successfully completed the 
     equivalent of 12 semester hours in a program of education 
     leading to a standard college degree;
       ``(4) if discharged or released from active duty during the 
     180-day period specified in paragraph (5), is discharged or 
     released therefrom with an honorable discharge; and
       ``(5) before 180 days after the date of the enactment of 
     the Veterans' Education and Compensation Benefits Amendments 
     of 1996, makes an irrevocable election to receive benefits 
     under this section in lieu of benefits under chapter 32 of 
     this title, pursuant to procedures which the Secretary of 
     each military department shall provide in accordance with 
     regulations prescribed by the Secretary of Defense for the 
     purpose of carrying out this section or which the Secretary 
     of Transportation shall provide for such purpose with respect 
     to the Coast Guard when it is not operating as a service in 
     the Navy;

     may elect to become entitled to basic educational assistance 
     under this chapter.
       ``(b) With respect to an individual who makes an election 
     under subsection (a) to become entitled to basic education 
     assistance under this chapter--
       ``(1) the basic pay of the individual shall be reduced (in 
     a manner determined by the Secretary of Defense) until the 
     total amount by which such basic pay is reduced is $1,200; or
       ``(2) to the extent that basic pay is not so reduced before 
     the individual's discharge or release from active duty as 
     specified in subsection (a)(4) of this section, the Secretary 
     shall collect from the individual an amount equal to the 
     difference between $1,200 and the total amount of reductions 
     under paragraph (1), which shall be paid into the Treasury of 
     the United States as miscellaneous receipts.
       ``(c)(1) Except as provided in paragraph (3) of this 
     subsection, an individual who is enrolled in the educational 
     benefits program provided by chapter 32 of this title and who 
     makes the election described in subsection (a)(5) of this 
     section shall be disenrolled from such chapter 32 program as 
     of the date of such election.
       ``(2) For each individual who is disenrolled from such 
     program, the Secretary shall refund--
       ``(A) to the individual, as provided in section 3223(b) of 
     this title and subject to subsection (b)(2) of this section, 
     the unused contributions made by the individual to the Post-
     Vietnam Era Veterans Education Account established pursuant 
     to section 3222(a) of this title; and
       ``(B) to the Secretary of Defense the unused contributions 
     (other than contributions made under section 3222(c) of this 
     title) made by such Secretary to the Account on behalf of 
     such individual.
       ``(3) Any contribution made by the Secretary of Defense to 
     the Post-Vietnam Era Veterans Education Account pursuant to 
     subsection (c) of section 3222 of this title on behalf of any 
     individual referred to in paragraph (1) of this subsection 
     shall remain in such account to make payments of benefits to 
     such individual under section 3015(f) of this title.
       ``(d) The procedures provided in regulations referred to in 
     subsection (a) shall provide for notice of the requirements 
     of subparagraphs (B), (C), and (D) of section 3011(a)(3) and 
     of subparagraph (A) of section 3012(a)(3) of this title. 
     Receipt of such notice shall be acknowledged in writing.''.
       (b) Conforming Amendments.--(1) The table of sections at 
     the beginning of chapter 30 is amended by inserting after the 
     item relating to section 3018B the following new item:

``3018C. Opportunity for certain VEAP participants to enroll.''.

       (2) Subsection (d) of section 3013 is amended by striking 
     out ``or 3018B'' and inserting in lieu thereof ``, 3018B, or 
     3018C''.
       (3) Subsection (f) of section 3015 is amended by inserting 
     ``, 3018B, or 3018C'' after ``section 3018A''.
       (4) Paragraph (3) of section 3035(b) is amended by striking 
     out ``or 3018B'' in the matter preceding subparagraph (A) and 
     inserting in lieu thereof ``, 3018B, or 3018C''.
       (c) Transfer of Educational Assistance Funds.--(1) 
     Subparagraph (B) of section 3232(b)(2) is amended--
       (A) by striking out ``, for the purposes of section 1322(a) 
     of title 31,''; and
       (B) by striking out ``as provided in such section'' and 
     inserting in lieu thereof ``to the Secretary for payments for 
     entitlement earned under subchapter II of chapter 30''.
       (2) Paragraph (1) of section 3035(b) of such title is 
     amended by inserting before the period at the end the 
     following: ``and from transfers from the Post-Vietnam Era 
     Veterans Education Account pursuant to section 3232(b)(2)(B) 
     of this title''.
       (3) Subsection (a) of section 1322 of title 31, United 
     States Code, is amended by striking out ``(82)'' and 
     inserting in lieu thereof ``(81)''.

     SEC. 104. MONTGOMERY GI BILL ELIGIBILITY FOR CERTAIN ACTIVE 
                   DUTY MEMBERS OF ARMY AND AIR NATIONAL GUARD.

       (a) In General.--Paragraph (7) of section 3002 is amended 
     by striking out ``November 29, 1989'' and inserting in lieu 
     thereof ``June 30, 1985''.
       (b) Application.--(1) An individual may only become 
     eligible for benefits under chapter 30 of title 38, United 
     States Code, as a result of the amendment made by subsection 
     (a) by making an election to become entitled to basic 
     educational assistance under such chapter. The election may 
     only be made within the nine-month period beginning on the 
     date of the enactment of this Act in the manner required by 
     the Secretary of Defense.
       (2) In the case of any individual making an election under 
     paragraph (1)--
       (A) the basic pay of an individual who, while a member of 
     the Armed Forces, makes an election under paragraph (1) shall 
     be reduced (in a manner determined by the Secretary of 
     Defense) until the total amount by which such basic pay is 
     reduced is $1,200; or
       (B) to the extent that basic pay is not so reduced before 
     the individual's discharge or release from active duty, the 
     Secretary of Defense shall collect from an individual who 
     makes such an election an amount equal to the difference 
     between $1,200 and the total amount of reductions under 
     subparagraph (A), which amount shall be paid into the 
     Treasury of the United States as miscellaneous receipts.
       (3) In the case of any individual making an election under 
     paragraph (1), the 10-year period referred to in section 3031 
     of such title shall begin on the later of--
       (A) the date determined under such section 3031; or
       (B) the date the election under paragraph (1) of this 
     subsection becomes effective.

     SEC. 105. PERMANENT AUTHORITY FOR ALTERNATIVE TEACHER 
                   CERTIFICATION PROGRAMS.

       Subsection (c) of section 3452 is amended by striking out 
     ``For the period ending on September 30, 1996, such'' and 
     inserting in lieu thereof ``Such''.
                 TITLE II--VETERANS' BENEFITS PROGRAMS

     SEC. 201. EFFECTIVE DATE OF DISCONTINUANCE OF CERTAIN 
                   VETERANS' BENEFITS BY REASON OF DEATH OF 
                   RECIPIENT.

       (a) Date of Discontinuance of Benefits.--Section 5112(b)(1) 
     of title 38, United States Code, is amended to read as 
     follows:
       ``(1) by reason of--
       ``(A) the marriage or remarriage of the payee, shall be the 
     last day of the month before the month during which such 
     marriage or remarriage occurs; and
       ``(B) the death of the payee, shall be (i) the last day of 
     the month before the month during which the death occurs, or 
     (ii) in the case of a payee who was in receipt of 
     compensation or pension and who has a surviving spouse who is 
     not entitled to have benefits computed under section 5310 of 
     this title for the month in which the death occurs, the date 
     on which the death occurs;''.
       (b) Payment of Benefit for Final Month.--Section 5112 of 
     such title is further amended by adding at the end the 
     following new subsection:
       ``(d) In the case of discontinuance of payment of 
     compensation or pension covered by subsection (b)(1)(B)(ii), 
     the payment for the final calendar month (or any portion 
     thereof) for which such benefit is payable shall 
     (notwithstanding any other provision of law) be payable to 
     the surviving spouse.''.
       (c) Commencement Date for DIC.--Section 5110(d) of such 
     title is amended by adding at the end the following new 
     paragraph:
       ``(3) Notwithstanding paragraph (1), the effective date of 
     an award of dependency and indemnity compensation for which 
     application is received within one year from the date of 
     death shall, in the case of a surviving spouse who is not 
     entitled to have benefits computed under section 5310 of this 
     title for the month in which the death occurs, be the day 
     following the date on which the death occurred.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to the death of compensation and 
     pension recipients occurring after October 1, 1997.

     SEC. 202. INCREASE IN PERIOD FOR WHICH ACCRUED BENEFITS 
                   PAYABLE.

       Subsection (a) of section 5121 is amended by striking out 
     ``one year'' in the matter preceding paragraph (1) and 
     inserting in lieu thereof ``two years''.

     SEC. 203. INCREASE IN AUTOMOBILE ALLOWANCE.

       (a) In General.--Subsection (a) of section 3902 is amended 
     by striking out ``$5,500'' and inserting in lieu thereof 
     ``$6,500''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to purchases of automobiles and 
     other

[[Page H7559]]

     conveyances on or after the date of the enactment of this 
     Act.

     SECTION 204. LEGAL ASSISTANCE FOR FINANCIALLY NEEDY VETERANS 
                   IN CONNECTION WITH COURT OF VETERANS APPEALS 
                   PROCEEDINGS.

       (a) In General.--Subchapter III of chapter 72 is amended by 
     adding at the end the following new section:

     ``Sec. 7287. Legal assistance for financially needy veterans 
       in proceedings before the Court

       ``(a)(1) The Court of Veterans Appeals shall provide funds 
     in order to provide financial assistance by grant or contract 
     to legal assistance entities for purposes of programs 
     described in subsection (b). Such funds shall be provided 
     from amounts transferred to the Court under subsection (c)(1) 
     or specifically appropriated to the Court for the purposes of 
     this section.
       ``(2) The Court shall seek to provide funds for such 
     purpose through a nonprofit organization selected by it. If 
     the Court determines that there exists no nonprofit 
     organization that would be an appropriate recipient of funds 
     under this section for the purposes referred to in paragraph 
     (1) and that it is consistent with the mission of the Court, 
     the Court shall provide financial assistance, by grant or 
     contract, directly to legal assistance entities for purposes 
     of permitting such entities to carry out programs described 
     in subsection (b).
       ``(b)(1) A program referred to in subsection (a) is any 
     program under which a legal assistance entity uses financial 
     assistance under this section to provide assistance or carry 
     out activities (including assistance, services, or activities 
     referred to in paragraph (3)) in order to ensure that 
     individuals described in paragraph (2) receive, without 
     charge, legal assistance in connection with decisions to 
     which section 7252(a) of this title may apply or with other 
     proceedings before the Court.
       ``(2) An individual referred to in paragraph (1) is any 
     veteran or other person who--
       ``(A) is or seeks to be a party to an action before the 
     Court; and
       ``(B) cannot, as determined by the Court or the entity 
     concerned, afford the costs of legal advice and 
     representation in connection with that action.
       ``(3) Assistance, services, and activities under a program 
     described in this subsection may include the following for 
     individuals described in paragraph (2) in connection with 
     proceedings before the Court:
       ``(A) Financial assistance to defray the expenses of legal 
     advice or representation (other than payment of attorney 
     fees) by attorneys, clinical law programs of law schools, and 
     veterans service organizations.
       ``(B) Case screening and referral services for purposes of 
     referring cases to pro bono attorneys and such programs and 
     organizations.
       ``(C) Education and training of attorneys and other legal 
     personnel who may appear before the Court by attorneys and 
     such programs and organizations.
       ``(D) Encouragement and facilitation of the pro bono 
     representation by attorneys and such programs and 
     organizations.
       ``(4) A legal assistance entity that receives financial 
     assistance described in subsection (a) to carry out a program 
     under this subsection shall make such contributions 
     (including in-kind contributions) to the program as the 
     nonprofit organization or the Court, as the case may be, 
     shall specify when providing the assistance.
       ``(5) A legal assistance entity that receives financial 
     assistance under subsection (a) to carry out a program 
     described in this subsection may not require or request the 
     payment of a charge or fee in connection with the program by 
     or on behalf of any individual described in paragraph (2).
       ``(c)(1)(A) From amounts appropriated to the Department for 
     each of fiscal years 1997 through 2003 for the payment of 
     compensation and pension, the Secretary shall transfer to the 
     Court the amount specified under subparagraph (B) for each 
     such fiscal year, and such funds shall be available for use 
     by the Court only in accordance with this section.
       ``(B) The amount to be transferred to the Court under 
     subparagraph (A) for any fiscal year is $700,000 for fiscal 
     year 1997 and the same amount for each succeeding fiscal year 
     through fiscal year 2003 increased by 3 percent per year, 
     reduced for any such fiscal year by such amount as may 
     otherwise be specifically appropriated for the purposes of 
     the program under this section for that fiscal year.
       ``(2) The Court shall provide funds available to it for the 
     purposes of the program under this section to a nonprofit 
     organization described in subsection (a)(1). Such funds shall 
     be provided to such organization in advance or by way of 
     reimbursement, to cover some or all of the administrative 
     costs of the organization in providing financial assistance 
     to legal assistance entities carrying out programs described 
     in subsection (b).
       ``(3) Funds shall be provided under this subsection 
     pursuant to a written agreement entered into by the Court and 
     the organization receiving the funds.
       ``(d) A nonprofit organization may--
       ``(1) accept funds, in advance or by way of reimbursement, 
     from the Court under subsection (a)(1) in order to provide 
     the financial assistance referred to in that subsection;
       ``(2) provide financial assistance by grant or contract to 
     legal assistance entities under this section for purposes of 
     permitting such entities to carry out programs described in 
     subsection (b);
       ``(3) administer any such grant or contract; and
       ``(4) accept funds, in advance or by way of reimbursement, 
     from the Court under subsection (c) in order to cover the 
     administrative costs referred to in that subsection.
       ``(e)(1) Not later than February 1 of each year, the Court 
     shall submit to Congress a report on the funds and financial 
     assistance provided under this section during the preceding 
     fiscal year. Based on the information provided the Court by 
     entities receiving such funds and assistance, each report 
     shall--
       ``(A) set forth the amount, if any, of funds provided to 
     nonprofit organizations under paragraph (1) of subsection (a) 
     during the fiscal year covered by the report;
       ``(B) set forth the amount, if any, of financial assistance 
     provided to legal assistance entities pursuant to paragraph 
     (1) of subsection (a) or under paragraph (2) of that 
     subsection during that fiscal year;
       ``(C) set forth the amount, if any, of funds provided to 
     nonprofit organizations under subsection (c) during that 
     fiscal year; and
       ``(D) describe the programs carried out under this section 
     during that fiscal year.
       ``(2) The Court may require that any nonprofit organization 
     and any legal assistance entity to which funds or financial 
     assistance are provided under this section provide the Court 
     with such information on the programs carried out under this 
     section as the Court determines necessary to prepare a report 
     under this subsection.
       ``(f) For the purposes of this section:
       ``(1) The term `nonprofit organization' means any not-for-
     profit organization that is involved with the provision of 
     legal assistance to persons unable to afford such assistance.
       ``(2) The term `legal assistance entity' means a not-for-
     profit organization or veterans service organization capable 
     of providing legal assistance to persons with respect to 
     matters before the Court.
       ``(3) The term `veterans service organization' means an 
     organization referred to in section 5902(a)(1) of this title, 
     including an organization approved by the Secretary under 
     that section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 7286 the following new item:

``7287. Legal assistance for financially needy veterans in proceedings 
              before the Court.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Arizona [Mr. Stump] and the gentleman from Mississippi [Mr. Montgomery] 
will each be recognized for 20 minutes.
  The Chair recognizes the gentleman from Arizona [Mr. Stump].
  (Mr. STUMP asked and was given permission to revise and extend his 
remarks.)


                             general leave

  Mr. STUMP. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and include extraneous material on H.R. 3674.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Arizona?
  There was no objection.
  Mr. STUMP. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, H.R. 3674, is one of the most significant pieces of 
veterans legislation to be considered by the House in some time.
  It is probably the largest expansion of benefits for veterans since 
the Persian Gulf war. As provided for in the congressional budget 
resolution, H.R. 3674 increases a variety of veterans' benefits by the 
total of $230 million over the next 6 years.
  This bill: Increases the Montgomery GI bill active duty monthly basic 
rate by $5, to a total of $421.62 per month. Allows certain active duty 
servicemembers in the post-Vietnam era educational assistance program 
to transfer into the Montgomery GI bill.
  Provides Montgomery GI bill eligibility for certain active duty 
members of the Army and Air National Guard. Makes permanent, the 
authority for alternative teacher certificate programs. Allows a 
surviving spouse to retain compensation or pension payments pro rated 
to the date of death instead of the end of the month before the veteran 
died.
  Increases from 1 year to 2 years, the period of time for which 
accrued benefits are payable to a surviving spouse in the case of a 
veteran who dies while a claim is being adjudicated. Increases the 
maximum one-time allowance for the purchase of an automobile by a 
severely disabled veteran from $5,500 to $6,500.
  And the bill authorizes funds for the pro bono legal assistance 
program in connection with proceedings before the U.S. Court of 
Veterans Appeals.

[[Page H7560]]

  Mr. Speaker, all these benefit improvements are offset by a provision 
clarifying the causal relationship required between a veterans' 
service-connected disability and an employment handicap for purposes of 
determining eligibility for vocational rehabilitation. In addition to 
my distinguished colleague, Sonny Montgomery, I want to thank the 
chairmen and ranking members of all three of our subcommittees and all 
members of the Committee on Veterans' Affairs for their contribution to 
this legislation.
  Several committee members authored separate bills which have made 
their way into H.R. 3674. Additionally, Mr. Speaker, I want to 
acknowledge the contribution of this legislation made by the 
distinguished chairman of the Budget Committee, Mr. Kasich.
  He and his staff worked very closely with the Veterans' Affairs 
Committee during this year's budget debate to work out an agreement 
allowing this bill to be considered within the context of the 
committee's balanced budget proposal.

                              {time}  1400

  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Indiana [Mr. Buyer], the chairman of the Subcommittee on Education 
and Training.
  Mr. BUYER. I thank the chairman for yielding me this time.
  Mr. Speaker, H.R. 3674 is really a consolidation of several bills 
taken up by two benefits subcommittees. I would like to thank my 
colleague, Terry Everett, for this work, on this bill, along with my 
other colleagues in the leadership, Sonny Montgomery and Bob Stump; and 
also great appreciation to the professional staff for the job that they 
have done on this bill.
  This bill contains several notable provisions that will enhance a 
wide variety of benefits and will spend about $229 million over the 
next 6 years to increase veterans benefits. The remaining $56 million 
will go to deficit reduction.
  I would like to take a moment and say what we really seek to do is 
override the Court of Veterans Appeals decision in Davenport versus 
Brown. It will clarify the causal relationship required between a 
veteran's service-connected disability and an employment handicap, for 
purposes of determining eligibility for vocational rehabilitation.
  It is my understanding in the Davenport versus Brown, Mr. Davenport, 
an attorney, with a 10-percent service-connected disability for a foot 
fungus wanted both rehabilitation in the form of a master's degree 
program in cinema so he could move to California for work in the movie 
industry. The VA denied the claim, saying that the fungus did not cause 
him an employability problem. He then appealed to the Court of Veterans 
Appeals, who then said that the service-connected disability did not 
have to cause an employability problem, merely had to be a service 
disability and have a employability problem due to any cause to get voc 
rehabilitation.
  I disagree with the decision of the Court of Veterans Appeals and so 
do many of my colleagues in this body. We have worked in a bipartisan 
fashion to draft this bill. Section 101, in fact, will override the 
Court of Veterans Appeals decision in Davenport versus Brown by 
reestablishing the longstanding requirement that a veteran's employment 
handicap be the result of a service-connected disability in order to 
qualify for vocational rehabilitation benefits.
  Section 102 would increase the basic monthly rate for the Montgomery 
GI bill benefits by $5 to $421.62 for 3-year enlistees and $343.51 for 
2-year enlistees. That is an increase in veterans benefits over 6 
years of $92 million.

  Section 103 of this bill will allow active duty service members to 
transfer from the old post Vietnam Era Education Assistance Program, 
known as VEAP, to the Montgomery GI bill under chapter 30. Under VEAP, 
a veteran could expect a maximum benefit of $8,100. Under the 
Montgomery GI bill, a veteran can expect a minimum of about $15,500 for 
a 3-year enlistment. This will increase veterans benefits by $18 
million over 6 years.
  Section 104 of this bill will offer active duty Army or Air Force 
National Guard members who are not eligible for any sort of education 
benefit to participate in the Montgomery GI bill. These are Guardsmen 
and women who enlisted between June 30, 1985 and November 29, 1989. We 
are increasing veterans benefits by $14 million over 6 years.
  Section 105 would make permanent the program to provide GI bill 
funding for veterans enrolled in programs designed to certify teachers 
through nontraditional education institutions. We are increasing 
veterans benefits by $6 million over 6 years.
  Section 201 will allow a surviving spouse to retain compensation or 
pension payments prorated to the day of death instead of the end of the 
month before a veteran died. We are increasing veterans benefits by 
over $70 million over 6 years.
  Section 202 increases the period of time for which accrued benefits 
are payable to a surviving spouse to 2 years. These are spouses of 
veterans who die while their claim is being adjudicated. We are doing 
this because of the large increase in adjudication time at VBA. We are 
increasing veterans benefits under this provision by $17 million over 6 
years.
  Section 203 would increase the maximum, one-time auto purchase 
allowance from $5,500 to $6,500. The allowance is available only to 
severely disabled veterans if their disability is service-connected. We 
are increasing veterans benefits in this provision by $6 million over 6 
years.
  Section 204 will keep the pro bono legal representation program at 
the Court of Veterans Appeals alive by directing VA transfer $700,000 
per year from the C&P account to the court. The pro bono program 
provides legal representation of financially needy veterans in 
connection with proceedings before the U.S. Court of Veterans Appeals 
at no cost to the veterans. We are increasing veterans benefits by this 
provision $6 million over 6 years.
  That is a total increase in veterans benefits by this committee of 
$229 million over 6 years. I think that is an excellent action.
  A lot of things go out and get CNN headline news. It is a shame when 
we are working in this Congress that the work of my dear colleagues, 
Sonny Montgomery and Bob Stump, doing great things on behalf of 
veterans, is not shown.
  This is virtually our only opportunity in this Congress to make these 
kinds of program improvements. These are good provisions that will make 
a difference in the lives of thousands of veterans and surviving 
spouses. It is a bipartisan bill.
  I thank all the Members on both sides of the aisle for their support, 
and I urge the full support of this bill by my colleagues.
  Mr. MONTGOMERY. Mr. Speaker, I yield myself such time as I may 
consume.
  To the gentleman from Indiana [Mr. Buyer] just in the well, this is 
important legislation. What we are doing is helping the young veteran, 
and it certainly should be pointed out that the legislation we have 
brought up today is very, very beneficial for our veterans and their 
dependents.
  This last bill, H.R. 3674, as amended, does include several 
provisions that would improve the GI bill and make it available to more 
veterans. The monthly benefits have been mentioned, if they go to 
school, a $5 a month increase allows service members participating in 
the old VEAP program that was after the Vietnam war, a program to 
enroll in the GI bill. It provides eligibility for educational benefits 
to certain active duty members of the National Guard. These active duty 
members are known as AGR's. It also makes permanent a program to 
encourage veterans to become teachers.
  Mr. Speaker, a $5 a month increase does not sound like a lot of 
money, but there are a lot of people out there getting these 
educational benefits, and anything we can do to encourage more veterans 
to use this program we think is worthwhile.
  I want to thank the gentleman from Arizona [Mr. Stump], chairman, and 
the gentleman from Indiana [Mr. Buyer], the gentleman from Alabama [Mr. 
Everett], the gentleman from Illinois [Mr. Evans], the gentleman from 
California [Mr. Filner], and other members of the committee for 
supporting us on this bill. I am very pleased with the recent 
Department of Defense report that said that the GI bill is the best 
recruiting tool that the military

[[Page H7561]]

has. It is really better than the cash benefits. But really the main 
purpose of the GI bill is to help veterans readjust to civilian life 
when they leave the military service. Over 2 million young men and 
women have chosen to participate in the Montgomery GI bill since the 
program started in 1985.
  Mr. Speaker, this bill has brought in a lot of money, of the $100 a 
month the active duty people pay for 12 months, has brought in more 
than $2 billion. So this has really helped the cost of the program, and 
it has not been a heavy cost, to the taxpayer.
  I want to say that this has brought qualified young people into the 
military service. We need quick learners now that the type of equipment 
we have in the military is very sophisticated and these young people 
need to have quick minds. We believe the educational benefits bring in 
the qualified people.
  Mr. Speaker, the last veterans' bill, H.R. 3674, as amended, includes 
several provisions that would improve the Montgomery GI bill and make 
it available to more veterans. It increases the monthly benefit for 
veterans going to school by $5 a month, it allows servicemembers 
participating in the old VEAP program to enroll in the GI bill, and it 
provides eligibility for education benefits to certain active duty 
members of the National Guard. It also makes permanent a program to 
encourage veterans to become teachers.
  A $5 per month increase doesn't sound like a lot of money, but 
anything we can do to encourage more veterans to use this program is 
worthwhile. I want to thank Mr. Stump, Mr. Buyer, and the other members 
for supporting VA on this.
  Mr. Speaker, I am very pleased with a recent Department of Defense 
[DOD] report concerning the Montgomery GI bill. Recruiters from all 
services say this program is the best recruitment tool they have, and 
DOD strongly supports the GI bill's continuation. The principal purpose 
of the GI bill is to help veterans readjust to civilian life. The best 
news is that, in March of this year, 95 percent of all new active-duty 
recruits chose to enroll in the GI bill. This means that over 11,000 
young men and women will have the means to further their education--in 
addition to the over 2 million recruits who have chosen to participate 
in the Montgomery GI bill since the program began in 1985.
  Additionally, Mr. Speaker, I would like my colleagues to know that 
since the GI bill's establishment, more than $2 billion have been 
returned to the Treasury because of the basic pay reduction required 
under the GI bill for active duty service members.
  This program has been a winner in every way. The GI bill has enabled 
the services to recruit the bright young people they need, it has been 
a cost-effective program and, most important, millions of fine men and 
women will have an opportunity to go to school that they might not have 
had but for the GI bill.
  I want to commend Mr. Evans for sponsoring the provision in this bill 
which would allow the VA to pay 2 years in back benefits to the 
survivor of a veteran whose claim is allowed after his or her death. 
Mr. Evans, in tandem with Terry Everett, the chairman of the 
Subcommittee on Compensation, Pensions, Insurance and Memorial Affairs, 
has worked hard and searched for the best ways to improve veterans 
programs within that subcommittee's jurisdiction.
  Mr. Speaker, I yield 3 minutes to the gentleman from California [Mr. 
Filner].
  Mr. FILNER. I thank the gentleman for yielding me this time.
  Mr. Speaker, I will not take up time by again summarizing this bill. 
I do, though, want to particularly point out two of the provisions in 
H.R. 3674. First, this measure would provide a modest increase in the 
benefits paid under the Montgomery GI bill--active duty. As the costs 
of education continue to rise, we must ensure that the GI bill is a 
meaningful readjustment benefit that provides an adequate level of 
assistance to our veteran students. Additionally, in a recent report, 
the Department of Defense cautioned that we must pay close attention to 
the benefit levels paid under the Montgomery GI bill if this program is 
to continue to be an effective recruitment tool.
  Next, a provision of H.R. 3674 would permit certain active-duty 
individuals who have eligibility under the Veterans' Educational 
Assistance Program, known as VEAP, to transfer to the Montgomery GI 
bill. By way of background, the new GI bill, as introduced by Mr. 
Montgomery and approved by the House in 1984, would have permitted all 
servicemembers with VEAP eligibility to transfer to the new program. 
The new GI bill was a far more generous program than VEAP, and Sonny 
wanted those members of the Armed Forces who were VEAP-eligibles to 
have the opportunity to enroll in the more attractive program. 
Unfortunately, the then-chairman and ranking member of the Senate Armed 
Services Committee, both of whom were opposed to the new GI bill, 
refused to accept this provision. The only way to reach a compromise 
and establish the new program was to accept the Senate restrictions on 
eligibility. Since then, however, Sonny has taken every opportunity to 
move individuals out of the VEAP program and into the Montgomery GI 
bill. H.R. 3674 continues his good work, and will enable yet another 
group of servicemembers to establish Montgomery GI bill eligibility.
  The Montgomery GI bill has been a landmark program, and I am proud to 
have the opportunity make it even stronger and better.
  Mr. STUMP. Mr. Speaker, I yield 3 minutes to the gentleman from 
Pennsylvania [Mr. Fox], a member of the committee.
  Mr. FOX of Pennsylvania. Mr. Speaker, I want to thank Chairman Stump 
for yielding time and for his leadership with this legislation. I am 
grateful for his assistance including provisions to authorize the 
exceptional veterans pro bono legal representation program within the 
bill. I would also like to thank Mr. Montgomery, the ranking member; 
Mr. Buyer, Mr. Everett, Mr. Hutchinson, Mr. Evans, Mr. Mascara, Mr. 
Bilirakis, Mr. Tejeda, Mr. Weller, Mr. Stearns, and my other colleagues 
on the committee for their strong support of our legislation to 
authorize the outstanding pro bono legal program which represents 
veterans before the Court of Veterans Appeals.
  Mr. Speaker, the pro bono program provides countless hours of 
volunteer legal service to veterans who would otherwise be unable to be 
represented before the Court of Veterans Appeals.
  This exceptional initiative helps veterans secure the rights and 
benefits that they have earned by virtue of their dedicated service to 
our great Nation. Moreover, the program improves the efficiency of the 
court and provides training to lawyers to assist veterans across the 
Nation.
  In fiscal year 1994 the pro bono program volunteer attorneys provided 
over 15,000 hours of service and a remarkable 77 percent of their 
veteran clients were successful in overturning the initial decision of 
the board. Not surprisingly, the program has broad support from the 
court and veterans service organizations and has received commendations 
from Supreme Court Chief Justice William Rehnquist.
  After hearing from the Court of Veterans Appeals, the pro bono 
program, the veterans service organizations, the Department of Veterans 
Affairs, and the Veterans Law Section of the Federal Bar Association, I 
introduced H.R. 3943 to provide statutory authorization for this 
tremendous service initiative.

                              {time}  1415

  Accordingly, I am delighted that this legislation was included within 
the bill that we have here today, H.R. 3674. But I would also like to 
express my gratitude to the Committee on Veterans' Affairs, the staff, 
the pro bono program, the Court of Veterans Appeals, and the veterans 
service organizations for their help on the bill.
  Again I thank the gentleman from Arizona [Mr. Stump], the chairman, 
and the gentleman from Mississippi [Mr. Montgomery], the ranking 
member, for their leadership on this important legislation we will act 
on today.
  Mr. MONTGOMERY. Mr. Speaker, I yield 3 minutes to the gentleman from 
Illinois [Mr. Evans].
  Mr. EVANS. Mr. Speaker, I first want to thank all those Members, 
particularly the gentleman from Pennsylvania [Mr. Fox], for sponsoring 
the provision to authorize funds for the pro bono legal assistance 
program. The veterans who have been awarded benefits by the Court of 
Veterans Appeals as a result of the legal assistance provided by the 
program fully understand the importance of this program and the need 
for this program in the future to be available to veterans who need it. 
I want to commend the gentleman from Arizona, Chairman Stump, the 
gentleman from Indiana, Subcommittee Chairman Buyer and the gentleman 
from Alabama, Subcommittee Chairman Everett, as well as the gentleman

[[Page H7562]]

from Mississippi, Ranking Member Sonny Montgomery and the gentleman 
from California, Bob Filner, for all their hard work on this 
legislation.
  This bill makes a number of enhancements to the Montgomery GI bill, a 
program I have been pleased to name. We had an amendment in the 
committee to name it the Montgomery GI bill, and I was pleased to offer 
that amendment. By providing an opportunity for more service members to 
enroll in the Montgomery GI bill, we increase the educational 
opportunities for deserving Americans, and by increasing the benefit 
level wherever we can we signify our commitment to the education needs 
of our veterans and service members.
  Mr. Speaker, I am not sure I will have another opportunity on this 
floor to express my thoughts about my colleague the gentleman from 
Mississippi, Congressman Sonny Montgomery. I believe every veteran in 
this country owes the gentleman a debt of gratitude for his work and 
commitment to serving veterans. Through his work, particularly on 
establishing the GI bill program, he has left a legacy that will be 
long remembered. He has earned the title ``Mr. Veteran.''
  The gentleman has been a faithful guardian and protector of the 
veterans of this Nation, and we will miss him very much. I want to 
personally offer my appreciation for his many years of service on the 
Committee on Veterans Affairs and the Committee on National Security 
and to wish him the very best in the future.
  Mr. STUMP. Mr. Speaker, I yield 3 minutes to the gentleman from New 
York [Mr. Gilman], the chairman of the Committee on International 
Relations.
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Speaker, I am pleased to rise in strong support of 
this measure, the veterans educational compensation benefits 
amendments, and to commend our committee's distinguished chairman, the 
gentleman from Arizona [Mr. Stump], and his ranking minority member 
partner, the distinguished gentleman from Mississippi [Mr. Montgomery]. 
These two gentleman have kept our veterans' affairs and their benefits 
right before the American public, before the Congress, and we owe them 
a deep debt of gratitude for doing what they are doing to keep our 
veterans in good stead.
  This legislation now before us makes several adjustments to veterans 
compensation programs. It makes improvements to the Montgomery GI bill, 
a historic measure. The bill increases the monthly basic Montgomery GI 
bill rates.
  The most significant change to education benefits is that veterans 
will now have to prove that their employment handicaps are directly 
related to service-connected disabilities in order to be eligible for 
training and vocational rehabilitation benefits.
  This legislation also allows a surviving spouse to retain 
compensation or pension payments pro rated until the day of death, 
instead of the end of the previous month before the veteran died, as 
under current law.
  Furthermore, the payment period for accrued benefits is increased 
from 1 to 2 years, and the maximum allowance provided by the VA 
Secretary for the purchase of an automobile is increased from $5,500 to 
$6,500.
  Finally, funding is authorized for financial assistance, by contract 
or grant, to legal assistance entities to represent financially needy 
veterans in proceedings before the U.S. Court of Veterans Appeals, 
enabling them to pursue their appeal properly.
  Mr. Speaker, this bill provides for numerous improvements to veterans 
compensation and education benefits programs. I strongly urge its 
passage.
  Again, I want to thank the leadership of the Veterans' Affairs 
Committee and ranking minority member for their excellent work in 
helping our veterans.
  Mr. STUMP. Mr. Speaker, I yield 3 minutes to the gentleman from 
Florida [Mr. Bilirakis].
  Mr. BILIRAKIS. Mr. Speaker, I am still out of breath running here 
from the airport, but I appreciate the gentleman from Arizona yielding 
me the time.
  Mr. Speaker, I rise in support of H.R. 3674, the veterans educational 
and compensation benefits amendments. I ask unanimous consent to revise 
and extend my remarks.
  I am pleased that a bill I introduced, H.R. 109, has been 
incorporated into H.R. 3674, My bill addresses a problem that confronts 
the surviving spouse of a recently deceased veteran. Under current law, 
if a veteran dies before the end of the month, even if it is only by a 
few hours, the surviving spouse will have that month's disability 
compensation revoked.
  Clearly this policy creates a huge financial burden for a recent 
widow, especially if she is not eligible for dependency and indemnity 
compensation. H.R. 3674 allows a surviving spouse to retain 
compensation or pension payments by prorating these payments to the 
date of death, and therefore, provides the surviving spouse with 
compensation for each day the veteran lived in that final month. For 
example, if the veteran lives until the 15th of the month, his spouse 
will be allowed to keep his compensation from the 1st through the 15th.
  In the 104th Congress, my legislation has received widespread 
bipartisan support in the House and is supported by the veterans' 
organizations and the VA. I want to thank Compensation Subcommittee 
Chairman Everett and Education Subcommittee Chairman Buyer for their 
support on this important issue.
  The enactment of H.R. 3674 would recognize that the financial 
obligations of a veteran's household do not vanish upon the veteran's 
death. Rent or mortgage payments and other bills will still come due, 
and a surviving spouse should not be left without any contribution from 
the VA for the last days of a veteran's life.
  I urge my colleagues to support H.R. 3674.
  Mr. MONTGOMERY. Mr. Speaker, I yield myself 1 minute.
  Mr. Speaker, we have the blue sheets on each one of the four bills 
that we have talked about today, and if any Member would like to have 
one of those blue sheets, they explain each bill.
  Mr. Speaker, I would like to thank my colleagues for the kind words 
that have been said about us today. You know, this is really what it is 
all about serving in Congress, the little things you are able to do 
that are appreciated.
  Mr. Speaker, with that, I yield back the balance of my time.
  Mr. STUMP. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, in closing, let me once again acknowledge the splendid 
cooperation from the ranking member, my good friend the gentleman from 
Mississippi, Sonny Montgomery, as well as the subcommittee ranking 
members, the gentleman from Illinois, Mr. Evans, the gentleman from 
Texas, Mr. Edwards, the gentleman from California, Mr. Filner. I almost 
forgot him, as well as my own subcommittee chairmen, the gentleman from 
Alabama, Mr. Everett, the gentleman from Arkansas, Mr. Hutchinson, and 
the gentleman from Indiana, Mr. Buyer, for all the hard work they have 
done. Especially I would like to thank the staff for the many hours 
that they have put in helping us to arrive at this point today. We take 
pride in being very bipartisan on this committee, and that extends down 
to the staff, too, and we are proud that we can do that and accomplish 
what we can for the veterans.
  Mr. STEARNS. Mr. Speaker, in an era of international economic 
competition, education is more important than ever. The link between 
education and our economic competitiveness is clear. In this decade, 89 
percent of the jobs being created require some form of post-secondary 
training. That is why I rise today in support of this measure which 
increases the monetary amount and expands access to certain members of 
the Army and National Guard for the Montgomery GI bill.
  By allowing participants in the Veterans' Education Assistance 
Program to transfer into the Montgomery GI bill, veterans will be 
afforded a greater education benefit, and an unpopular and relatively 
unsuccessful program will be brought nearer to closure. It is in our 
Nation's best interest to provide improved education opportunities 
whenever possible.
  This legislation represents a substantial stride toward transforming 
the Department of Veterans' Affairs into a more effective and efficient 
organization that can better serve our Nation's veterans. I urge my 
colleagues to support this measure and thus demonstrate its commitment 
to our outstanding young men and women who are the backbone of our 
Armed Forces.

[[Page H7563]]

  Mr. STUMP. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Gutknecht). The question is on the 
motion offered by the gentleman from Arizona [Mr. Stump] that the House 
suspend the rules and pass the bill, H.R. 3674, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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