[House Report 104-650]
[From the U.S. Government Publishing Office]
104th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 104-650
_______________________________________________________________________
VETERANS' EDUCATION AND COMPENSATION BENEFITS AMENDMENTS OF 1996
_______________________________________________________________________
June 27, 1996.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Stump, from the Committee on Veterans' Affairs, submitted the
following
R E P O R T
[To accompany H.R. 3674]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred 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, having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.
Introduction
The reported bill reflects the Committee's consideration of
several bills introduced during the 104th Congress, including
H.R. 109, H.R. 1482, H.R. 2868 and H.R. 3493. Additional
provisions were included for consideration by the full
Committee.
On April 17, 1996, the Subcommittee on Compensation,
Pension, Insurance and Memorial Affairs ordered reported H.R.
3248 to the full Committee, which contained provisions from
H.R. 109 and H.R. 1482.
On April 18, 1996, the Subcommittee on Education, Training,
Employment and Housing held a hearing and discussed H.R. 2868.
On May 22, 1996, the Subcommittee on Compensation, Pension,
Insurance and Memorial Affairs ordered reported favorably H.R.
3493 to the full Committee. H.R. 3493 was reintroduced as H.R.
3506 on May 22, 1996, with identical legislative language and
with additional original cosponsors.
On June 20, 1996, H.R. 3674 was ordered reported by the
full Committee to the House.
Summary of the Reported Bill
H.R. 3674 contains two titles.
Title I would:
1. Require a causal relationship between a veteran's
service-connected disability and employment handicap to
qualify for vocational rehabilitation assistance.
2. Increase the basic monthly rate of the Montgomery
GI Bill-Active Duty.
3. Enable certain active duty Post Vietnam-Era
Educational Assistance Program participants to transfer
to the Montgomery GI Bill-Active Duty.
4. Provide eligibility for certain current and former
active duty members of the Army and Air National Guard
for the Montgomery GI Bill.
5. Make permanent the authority for payment of
Montgomery GI Bill benefits for alternative teacher
certification programs.
Title II would:
1. Amend the effective date of discontinuance of
certain veterans' benefits by reason of death of
recipient.
2. Increase the period for which accrued benefits are
payable.
3. Increase the maximum allowance provided by the
Secretary for the purchase of an automobile from $5,500
to $6,500.
4. Authorize the provision of funds in order to
provide financial assistance by grant or contract to
legal assistance entities for representation of
financially needy veterans in connection with
proceedings before the United States Court of Veterans
Appeals.
Background and Discussion
TITLE I-VETERANS' EDUCATION PROGRAMS
Section 101. Employment handicap for which an individual
may receive training and rehabilitation assistance. This
section would restore the causal relationship between a
service-connected disability and an employment handicap for the
purpose of awarding vocational rehabilitation benefits. Since
1917, when vocational rehabilitation for veterans was
established by law, a causal relationship between a veteran's
service-connected disability and an employment handicap was
required for service-disabled veterans to be eligible for
vocational rehabilitation benefits. This nexus formed the basis
for the original program and defined the Nation's
responsibility for vocational rehabilitation to those veterans
who incur or aggravate a disability while serving in our Armed
Forces.
In 1980, Public Law 96-466 extensively revised vocational
rehabilitation programs in chapter 31 and the express statutory
language requiring the causal relationship was omitted. As a
result, under current law, veterans seeking vocational
rehabilitation benefits under chapter 31 satisfy the statutory
requirements if they (1) have a compensable service-connected
disability and (2) are found to be in need of rehabilitation
because of an employment handicap. Nonetheless, when the VA
promulgated regulations related to the changes in the
vocational rehabilitation programs, the VA continued to require
the causal relationship as it had done in the past.
A 1995 Court of Veterans Appeals decision, Davenport v.
Brown, 7 Vet. App. 476 (1995), found no statutory support for
the VA's regulations requiring a causal relationship between
the service-connected disability and the employment handicap.
As a result, the VA estimated that the Davenport decision would
produce 32,366 additional participants in vocational
rehabilitation programs over five years. This represents a 14.4
percent increase in participation and a 14.6 percent increase
in entitlement spending. The VA estimates that enactment of
legislation to restore the causal relationship between a
service-connected disability and vocational rehabilitation
would result in pay-as-you-go-savings of $285 million during
fiscal years 1997-2002.
The bill would in effect reverse the Davenport decision,
and make other improvements enabling the VA to focus its
resources on service-disabled veterans most in need of training
and rehabilitation assistance. The bill would reinstate
original Congressional intent by requiring a nexus between the
veteran's service-connected disability and employment handicap
in the same manner as required by the VA's regulations prior to
the Davenport decision.
Section 102. Increase in basic Montgomery GI Bill-Active
Duty rates. This section would raise the basic monthly rate for
full-time education training under the Montgomery GI Bill-
Active Duty $5 from $416.62 to $421.62. The monthly full-time
rate for two-year enlistees would be increased from $338.51 to
$343.51. The Committee directs that the annual cost of living
allowance (COLA) increase for fiscal year 1997, as required by
title 38, be based on the new rates.
Section 103. Opportunity for certain VEAP-participants to
enroll. This section would authorize service members
participating in the chapter 32 Veterans' Education Assistance
Program (VEAP) to transfer to the Montgomery GI Bill, chapter
30, title 38, USC. Post-Vietnam service members were eligible
to enroll in VEAP after December 31, 1976, and before April 1,
1987. VEAP was the first contributory education benefit plan.
Under VEAP, active duty service members made voluntary
contributions to an individual account which the federal
government matched at a 2:1 ratio. The maximum participant
contribution was $2,700, and participants could elect to make a
lump-sum contribution to the fund. In most cases, a veteran had
10 years in which to use the education benefit, and/or make a
claim for the unused contribution.
According to VA statistics, 18,927 persons used their VEAP
entitlement in fiscal year 1995, which amounted to four percent
of the total of persons using VA training and education
benefits. By comparison, the Montgomery GI Bill provided
benefits to nearly 292,000 trainees, or 59 percent of the
total.
The Committee believes that by allowing VEAP participants
the opportunity 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. The Committee is convinced that it is in the
best interest of the Departments of Defense and Veterans'
Affairs, and most importantly, for the veterans affected, to
provide improved education and training opportunities whenever
possible.
Section 104. Montgomery GI Bill eligibility for certain
current and former active duty members of Army and Air National
Guard. This section would provide eligibility for Montgomery GI
Bill for some current and former active duty members of the
Army and Air National Guard serving between June 30, 1985 and
November 29, 1989. These members were not afforded the
opportunity to participate in any education program, and the
Committee desires to recognize their service with the same
benefit available to others who served during that period.
Section 105. Permanent authority for Alternative Teacher
Certification Programs. This section would make permanent a
pilot program established under Public Law 103-446 which
provides Montgomery GI Bill benefits to those pursuing State-
approved alternative teacher certification programs through
non-traditional educational institutions. The program is
currently set to expire on September 30, 1996. The bill also
further defines the term ``non-traditional educational
institution''. For example, a veteran participating in programs
offered by school districts or a consortium of school districts
and certified by State Approving Agencies would be eligible for
GI Bill benefits. Typically, a school district would offer
certification through a combination of course work and
``student teaching'' under the guidance of a certified teacher,
saving both time and tuition for the new teacher.
The Committee views the proposal favorably because it is
successfully offering greater flexibility to a number of
veterans. By 1995, 40 states and the District of Columbia
reported that more than 50,000 persons have been licensed to
teach through state alternative routes.
TITLE II-VETERAN'S BENEFITS PROGRAMS
As of May, 1996, 2.2 million veterans received service-
connected disability compensation and 420,789 veterans received
non service-connected pension. The number of spouses receiving
Dependency and Indemnity Compensation totaled 300,934 for the
same period. The Department of Veterans Affairs expenditures
for disability compensation for fiscal year 1996 are expected
to be more than $15 billion.
Approximately 50,000 compensation recipients and about
45,000 pension recipients die annually. About two-thirds of
compensation recipients have surviving spouses, resulting in
about 1,000 new Dependency and Indemnity Compensation
beneficiaries per month. Widows and widowers of newly deceased
pension recipients average about 1,500 per month. Deaths of
compensation and pension recipients occur evenly through a
given month.
Section 201. Effective date of discontinuance of certain
veterans' benefits by reason of death of recipient. This
provision would allow a surviving spouse to retain compensation
or pension payments pro rated to the day of death, instead of
the end of the previous month. This provision would recognize
the veterans' dependence on the compensation or pension. The
effective date of this provision would be October 1, 1997.
Section 202. Increase in period for which accrued benefits
are payable. This provision would authorize an increase in the
payment of accrued benefits for survivors from one year to two
years, in the case of a veteran dying prior to adjudication of
the claim. Current law limits payment of back benefits to one
year. This increase would recognize the length of time it
currently takes VA to process and adjudicate a claim.
Section 203. Increase in automobile allowance. This
provision would increase from $5,500 to $6,500 the maximum
allowance provided for purchase of an automobile. The auto
allowance, a one time grant, is available to severely disabled
veterans if their disability is the result of an injury
incurred or disease contracted in or aggravated by active
military service. The Secretary prescribes or assists in
providing an automobile or other conveyance to each eligible
person by paying the lesser of the total purchase price of the
automobile or conveyance or the maximum allowance. The
allotment has not been increased since April 1988.
Approximately 900 people will be affected by this provision.
Section 204. Legal assistance for financially needy
veterans in connection with Court of Veterans Appeals
proceedings. Section 204 would authorize the provision of funds
in order to provide financial assistance by grant or contract
to legal assistance entities for representation of financially
needy veterans in connection with proceedings before the United
States Court of Veterans Appeals.
In 1991, the Court of Veterans Appeals found that the
overwhelming majority of appellants appearing before it were
unrepresented by attorneys. In order to alleviate the resulting
burden, the Court proposed the creation of the Pro Bono
Representation Program to provide free legal representation to
veterans with claims before the Court. Prior to fiscal year
1996, a discrete line-item appropriation was included in the
Court's budget and designated for transfer to the Program's
administrator, the Legal Services Corporation. In fiscal year
1996, the Court's operating funds were appropriated through
successive continuing resolutions which did not include such a
discrete line-item appropriation. In addition, the Court's
funding was reduced from the $9.8 million requested for fiscal
year 1996 to $9 million, an 8 percent decrease. Despite the
reduction from its requested level of funding, the Court was
compelled to provide funding for the Pro Bono program. In the
Court's view, the fiscal year 1996 funding situation created a
dilemma requiring the Court to choose between its own
operations and full funding of the representation program
designed to benefit one side of the litigation before it. In
fiscal year 1997, the Court did not request money to fund the
Program because it saw a reduction in its annual appropriation
as creating a conflict between the Court's funding and the
Program's funding. In order to avoid what it perceived to be
the appearance of an ethical dilemma, the Court requested an
alternative funding method for fiscal year 1997 while still
fully supporting the Program.
The Committee believes that the Pro Bono Program provides a
valuable service to both veterans and the Court. Veterans
receive free legal representation in a process which becomes
complex and adversarial upon reaching the Court of Veterans
Appeals. The Court is not burdened with as many unrepresented
claims as it was prior to the creation of the Program. It is
therefore able to operate a more efficient appellate judicial
system.
Consequently, in this bill, the Committee would fund the
Program for six years at $700,000 per year, with an increase of
three percent per year beginning in fiscal year 1998. The bill
would fund the Program through the VA's Compensation and
Pension account. This amount would be reduced during each of
the six years by any appropriation enacted for operation of the
Program. The Court would receive the funding from the account
and/or the enacted appropriation, select a program
administrator, and pass the funds to the administrator.
Section-By-Section Analysis
Section 1 would be cited as the ``Veterans' Education and
Compensation Benefits Amendments of 1996''.
Section 101(a) would amend section 3101 of title 38, United
States Code, by establishing the causal relationship between a
veteran's service-connected disability rated at 10 percent or
more and an employment handicap and the need for vocational
rehabilitation.
Section 101(b) would amend section 3102 to simplify the
language and clarify that the Secretary is to determine if a
veteran is in need of rehabilitation because of a serious
employment handicap. These amendments would not be substantive.
Section 101(c) would amend section 3103 to make clarifying
and technical amendments to section 3103.
Section 101(d) would amend section 3104 correlate
rehabilitation services to the severity of impairment derived
from a veteran's service-connected disability or disabilities.
Section 101(e) would amend section 3103 by correlating the
duration of assistance with a veteran's current impairment to
employment.
Section 101(f) would amend section 3106 by allowing the
Secretary to determine whether a veteran who has a serious
employment handicap is capable of participating in a program of
independent living services under section 3120 of title 38.
Section 101(g) would amend section 3108 requiring a
standard that the veteran satisfactorily follow a program of
employment services.
Section 101(h) would amend section 3117(a) (1) by inserting
``rated 10 percent or more'' after ``disability''.
Section 101(i) would amend section 3120 by striking
``service-connected disability described in section
3102(1)(A)'' and inserting ``serious employment handicap
resulting in substantial part from a service-connected
disability described in section 3102(1)(A)(i)'' to clarify the
nexus requirement.
Section 101(j) would make the effective date the date of
enactment of this Act, except that amendments relating to the
causal relationship would be given prospective effect.
Section 102(a)(1) would amend section 3015(a)(1) by
increasing by $5 the basic monthly education benefit for full-
time students rates to $421.62.
Section 102(a)(2) would amend section 3015(b)(1) by
increasing by $5 the basic monthly education benefit for two
year enlistees to $343.51.
Section 102(b) would make the increase made in this section
effective on October 1, 1996.
Section 103(a) would amend subchapter II of chapter 30 by
allowing certain chapter 32 active duty participants to
transfer enrollment to the Montgomery GI Bill and would add the
following new sections:
Section 3018C(a) would allow VEAP participants
(Chapter 32) to elect to transfer to the Montgomery GI
Bill (Chapter 30).
Section 3018C(b) would require that the basic pay of
an individual who elects to transfer be reduced by
$1,200, or that the Secretary collect $1,200, from the
individual, in order to become eligible for this
entitlement.
Section 3018C(c) would provide for the disenrollment
from the VEAP program upon a veteran's election to
transfer to chapter 30 education benefits and would
provide for the transfer of education funds from VEAP
accounts (chapter 32) to Montgomery GI Bill accounts
(chapter 30).
Section 104(a) would amend paragraph (7) of section 3002
allowing active duty National Guard Reserve members who first
served between November 29, 1989 and June 30, 1985 to
participate in Montgomery GI Bill benefits.
Section 104(b)(1) would allow a nine month window to apply
for benefits under this Act.
Section 104(b)(2) would authorize the Secretary of Defense
to collect $1,200 from individuals as necessary to establish
eligibility for authorized educational benefits under this Act.
Section 104(b)(3) would provide for a ten-year time
limitation for eligibility and entitlement for benefits
authorized under this section.
Section 105 would amend of section 3452(c) by making
permanent the alternative teacher certification program.
Section 201(a) would amend section 5112(b)(1) by
establishing the effective date of reductions and
discontinuance of compensation, dependency and indemnity
compensation, or pension when the recipient marries, remarries,
or dies.
Section 201(b) would amend section 5112 by providing for
payment of benefit during the final month.
Section 201(c) would amend section 5110(d) by adding a new
paragraph providing for the commencement date of Dependency and
Indemnity Compensation on the day after the veteran's death.
Section 201(d) would provide an effective date for deaths
occurring on or after October 1, 1997.
Section 202 would amend section 5121(a) by increasing the
period for which accrued benefits are payable from one year to
two years.
Section 203(a) would amend section 3902(a) by increasing
the automobile allowance from $5,500 to $6,500.
Section 203(b) would make the increase made in this section
effective for purchases of automobiles and other conveyances on
or after the date of enactment of this Act.
Section 204(a) would amend subchapter III of chapter 72 by
adding a new section: ``Section 7287 Legal assistance for
financially needy veterans in proceedings before the Court'',
and would add the following new sections:
Section 7287(a) would require the Court to provide
funds for financial assistance to legal assistance
entities in order to provide free legal representation
for indigent veterans.
Section 7287(b) would clarify the type of activity
covered under this section, including financial
assistance to defray the expenses of legal
representation, case screening and referral services to
pro bono attorneys or education and training activities
for attorneys. This section would also provide that
veterans or other parties before the Court who cannot
afford the costs of legal representation would receive
such free legal assistance in proceedings before the
Court. It would further provide that entities receiving
financial assistance for free legal representation of
individuals may not require or request payment from any
individual in connection with the Pro Bono Program.
Section 7287(c) would fund the Pro Bono Program for
fiscal years 1997 through 2003 at $700,000 per year
with an additional three percent per year beginning in
fiscal year 1998. This funding would be paid out of the
VA's Compensation and Pension account. It would further
provide that the funding from the account would be
reduced by any amount appropriated for operation of the
Program.
Section 7287(d) would provide that a nonprofit
organization may accept funds from the Court and
provide financial assistance by grant or contract to
legal assistance entities to furnish free legal
services to veterans. It would further provide that a
nonprofit organization would administer any such grant
or contract and accept funds from the Court to cover
the administrative costs associated with the Program.
Section 7287(e) would require the Court to submit to
Congress by February 1 of each year, a report on the
funds and financial assistance provided under the
Program. It would further allow the Court to require
any nonprofit organization and any legal assistance
entity which receives funds under this section to
provide the Court with pertinent information on the
Program.
Section 7287(f) would establish definitions for
``nonprofit organization'', ``legal assistance
entity'', and ``veterans service organization''.
Section 204(b) would make a clerical amendment adding
section 7287 to the table of sections at the beginning of
chapter 72.
Oversight Findings
No oversight findings have been submitted to the Committee
by the Committee on Government Reform and Oversight.
Congressional Budget Office Cost Estimate
The following letter was received from the Congressional
Budget Office concerning the cost of the reported bill:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 21, 1996.
Hon. Bob Stump,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3674, Veterans
Education and Compensation Benefits Amendments of 1996, as
ordered reported by the House Veterans' Affairs Committee on
June 20, 1996.
The bill would affect direct spending and thus would be
subject to pay-as-you-go procedures under section 252 of the
Balanced Budget and Emergency Deficit Control Act of 1985.
If you wish further details on this estimate, we will be
pleased to provide them.
Sincerely,
June E. O'Neill,
Director.
Attachment
Congressional Budget Office Cost Estimate
1. Bill number: H.R. 3674
2. Bill title: Veterans' Education and Compensation
Benefits Amendments of 1996.
3. Bill status: As ordered reported by the House Committee
on Veterans' Affairs on June 20, 1996.
4. Bill purpose: The bill would affect eligibility for
training and rehabilitation assistance, payments under the
Montgomery GI Bill (MGIB), eligibility of current participants
in the Post-Vietnam Educational Assistance Program (VEAP) for
MGIB, and several provisions of law governing compensation and
pension benefits.
5. Estimated cost to the Federal Government: The following
table summarizes the budgetary effects of the bill over the
1997-2002 period.
[By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002
----------------------------------------------------------------------------------------------------------------
DIRECT SPENDING
Proposed changes:
Estimated budget authority..................... 0 11 -2 -16 -15 -15 -17
Estimated outlays.............................. 0 9 -2 -16 -14 -16 -17
----------------------------------------------------------------------------------------------------------------
Spending resulting from this bill would fall under budget
function 700.
6. Basis of estimate: The estimate assumes enactment of the
bill and an effective date of October 1, 1996. CBO used
historical spending rates for estimating outlays.
Veterans' Education and Readjustment Benefits
Six provisions would affect veterans education and
readjustment benefits. Their costs are shown in Table 1.
TABLE 1: COSTS OF PROVISIONS AFFECTING READJUSTMENT BENEFIT PROGRAMS
[By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002
----------------------------------------------------------------------------------------------------------------
DIRECT SPENDING
Spending under current law:
Estimated budget authority..................... 1,360 1,369 1,486 1,556 1,546 1,487 1,488
Estimated outlays.............................. 1,290 1,399 1,486 1,556 1,566 1,467 1,488
Proposed changes:
Estimated budget authority..................... 0 -4 -17 -32 -31 -31 -34
Estimated outlays.............................. 0 -4 -17 -32 -31 -31 -34
Spending under the bill:
Estimated budget authority..................... 1,360 1,365 1,469 1,524 1,515 1,456 1,454
Estimated outlays.............................. 1,290 1,395 1,469 1,524 1,535 1,436 1,454
----------------------------------------------------------------------------------------------------------------
Eligibility for training and rehabilitation assistance
(section 101).--This provision would require veterans to show
that their employment handicaps are a direct result of their
service-connected disability, thus overturning a recent court
decision. CBO estimates that savings would total $20 million
for 1997 and about $58 million in 2002 based on about 3,100
trainees and about 7,600 trainees in 1997 and 2002,
respectively. The number of trainees affected by the bill would
vary over the five-year period primarily because the average
training period is about two and a half years, and the bill
would apply to more than one cohort after 1997. The estimate
assumes an average benefit of about $7,000 a year.
Increase in basic Montgomery GI Bill rates (section 102).--
This section would raise the basic monthly education benefit by
$5 a month. This increase is not large enough to affect
participation rates, so this estimate assumes that
participation remains at baseline levels--about 466,000
trainees a year. Consequently, the provision would cost about
$13 million in 1997, and costs would rise to $17 million in
2001.
Transfer of VEAP beneficiaries to the Montgomery GI Bill
(section 103).--The bill would provide an opportunity for
active duty personnel currently enrolled in Post-Vietnam Era
Veterans Education Program to transfer to the Montgomery GI
Bill program. Like all other participants, these people would
be required to contribute $1,200. The current balance of their
contributions to VEAP would automatically be transferred to the
Treasury. The Secretary of Defense would collect contributions
from participants and refund balances in excess of $1,200.
CBO estimates that approximately 10 percent or about 7,500
veterans would transfer to the Montgomery GI Bill program. For
1997, refunds would exceed contributions by about $4 million.
The average benefit for trainees is higher for the Montgomery
GI Bill by $700, and training costs would be $ 1 million for
the 1,875 trainees. Thus, the total cost for 1997 would be $5
million. Because the refunds would all be paid in 1997, the
only costs over the 1998-2002 period are the increased training
benefits--$2 million for 1998 and 1999 and $3 million a year
thereafter.
Eligibility of certain Reserve personnel for Montgomery GI
Bill (section 104).--This provision would allow certain members
of the Reserve Components serving on active duty to become
eligible for Montgomery GI Bill benefits if they enroll and
contribute $1,200. Those members, who came on active duty
between June 30, 1985, and November 29, 1989, have never been
offered the opportunity to enroll.
According to the Department of Defense (DOD), about 3,950
of an eligible population totaling about 4,400 people are
expected to enroll. CBO estimates that the contributions would
exceed training costs by about $4 million in 1997. Beginning in
1998, the provision would result in added costs of about $4
million as the first cohort begins to train. Costs reach $5
million in 1999, but would then decline by about $1 million a
year through 2002 because the bill would apply to a fixed
number of beneficiaries and the likelihood of their using the
benefit falls over time.
Alternative teaching certificates (section 105).--The bill
would permanently extend VA's authority to pay MGIB benefits to
veterans who train in State-approved certification programs.
Under current law, VA's authority expires at the end of fiscal
year 1996; thus, costs begin in 1997. Training usually occurs
in one of three settings--universities, service centers, or
school districts. This bill would provide benefits to students
who train outside of a university setting.
CBO assumes that the number of people training in these
programs will remain steady (about 380 per year), and that
enrollment will continue to be evenly divided between
university and other settings. Also, CBO assumes that, on
average, participants would train for a period of about 10
months. Based on a benefit rate for full-time students of about
$400 per month of training, the bill would increase costs by
about $1 million per year.
Increase in automobile allowance (section 203).--VA
currently awards allowances to certain disabled veterans to
purchase automobiles. This bill would increase the automobile
allowance from $5,500 to $6,500. According to VA, this
provision would benefit about 1,100 persons, and the yearly
cost would be about $1 million.
Other Benefit Programs
Table 2 shows the costs of three provisions that would
affect other benefit programs.
Discontinuance of veterans' benefits (section 201).--
Currently, a veteran's compensation benefit is discontinued on
the last day of the month prior to the veteran's death. This
bill would allow surviving spouses of totally disabled veterans
to keep a share of the monthly benefit that would vary
according to the date of the veteran's death. Data from the
Department of Veterans Affairs (VA) indicate that close to
33,000 survivors of compensation beneficiaries and about 18,000
survivors of veterans who are pensioners would benefit from
this provision each year. On average, survivors would be paid
half a month's benefit, resulting in a cost of $11 million in
1997 rising to $12 million in 2002.
TABLE 2: COST OF PROVISIONS AFFECTING OTHER BENEFIT PROGRAMS
[By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002
----------------------------------------------------------------------------------------------------------------
DIRECT SPENDING
Spending under current law:
Estimated budget authority..................... 17,991 18,168 18,447 19,209 19,512 19,847 20,215
Estimated outlays.............................. 16,565 18,183 18,389 19,146 20,912 18,395 20,184
Proposed changes:
Estimated budget authority..................... 0 15 15 16 16 16 17
Estimated outlays.............................. 0 13 15 16 17 15 17
Spending under the bill:
Estimated budget authority..................... 17,991 18,183 18,462 19,225 19,528 19,863 20,232
Estimated outlays.............................. 16,565 18,196 18,404 19,162 20,929 18,410 20,201
----------------------------------------------------------------------------------------------------------------
Accrued benefits (section 202).--Currently, veterans'
compensation or pension benefits are payable retroactive to the
date of application, and can be accrued for up to one year.
Depending on the nature of the case, the adjudication process
for veterans' benefits can last several years. If a veteran
dies during the adjudication process, VA pays the surviving
spouse the accrued benefits that would have been paid to the
veteran. This bill would require VA to pay surviving spouses
benefits accrued for up to two years rather than one.
VA does not have adequate data for a cost estimate. About
3,000 accrued cases were paid last year, most involving
compensation payments. If half of these accrued cases involved
claims that would entitle survivors to more than a year's worth
of benefits--16 months, for example--the cost of this bill
would be about $3 million a year for the extra four months of
benefits.
Legal assistance for financially needy veterans (section
204).--This provision would permit the Court of Veterans
Appeals (COVA) to provide financial assistance on behalf of
needy veterans to third parties for screening, legal
representation and advice, and other such purposes. The
legislation would require that certain amounts appropriated for
compensation and pensions in 1997 through 2003 be transferred
to a fund for the payment of this legal assistance. The bill
would provide $700,000 in 1997 and the same amount increased by
3 percent a year thereafter.
In addition, the bill would create a gift fund for the same
purposes. Citizens or corporations could contribute to the
legal assistance fund. CBO estimates that these funds would be
expended in the year they are received. Thus, the creation of
the gift fund would have no net budgetary impact.
7. Pay-as-you-go considerations: The Balanced Budget and
Emergency Deficit Control Act of 1985 sets up pay-as-you-go
procedures for legislation affecting direct spending or
receipts through 1998. The bill would have the following pay-
as-you-go impact:
[By fiscal years, in millions of dollars]
------------------------------------------------------------------------
1996 1997 1998
------------------------------------------------------------------------
Change in outlays............................ 0 9 -2
Change in receipts .......................... Not applicable
8. Estimated impact on State, local, and tribal
governments: H.R. 3674 contains no intergovernmental mandates
as defined by Public Law 104-4 and would not affect the budgets
of State, local or tribal governments.
9. Estimated impact on the private sector: This bill would
impose no new federal private-sector mandates, as defined in
Public Law 104-4.
10. Previous CBO estimate: None.
11. Estimate prepared by:
Federal cost estimate: Victoria Fraider and Mary
Helen Petrus.
Impact on State, local, and tribal governments: Marc
Nicole.
Impact on private sector: Ellen Breslin Davidson.
12. Estimate approved by: Paul N. Van de Water, Assistant
Director for Budget Analysis.
Inflationary Impact Statement
The enactment of the reported bill would have no
inflationary impact.
Applicability to Legislative Branch
The reported bill would not be applicable to the
legislative branch under the Congressional Accountability Act,
Public Law 104-1, because the bill would only affect certain
Department of Veterans Affairs programs and benefits
recipients.
Statement of Federal Mandates
The reported bill would not establish a federal mandate
under the Unfunded Mandates Reform Act, Public Law 104-4.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the
bill, as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black brackets, new matter is
printed in italics, existing law in which no change is proposed
is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 30--ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM
subchapter i--purposes; definitions
Sec.
3001. Purposes.
* * * * * * *
subchapter ii--basic educational assistance
3011. Basic educational assistance entitlement for service on active
duty.
* * * * * * *
3018C. Enrollment of certain VEAP-enrolled individuals.
* * * * * * *
SUBCHAPTER I--PURPOSES; DEFINITIONS
* * * * * * *
Sec. 3002. Definitions
For the purposes of this chapter--
(1) * * *
* * * * * * *
(7) The term ``active duty'' includes full-time National
Guard duty first performed after [November 29, 1989] June 30,
1985, by a member of the Army National Guard of the United
States or the Air National Guard of the United States in the
member's status as a member of the National Guard of a State
for the purpose of organizing, administering, recruiting,
instructing, or training the National Guard.
* * * * * * *
SUBCHAPTER II--BASIC EDUCATIONAL ASSISTANCE
* * * * * * *
Sec. 3013. Duration of basic educational assistance
(a) * * *
* * * * * * *
(d) Subject to section 3695 of this title, each individual
entitled to educational benefits under section 3018A [or
3018B], 3018B, or 3018C of this title is entitled to the lesser
of--
(1) 36 months of educational assistance under this
chapter (or the equivalent thereof in part-time
educational assistance; or
(2) the number of months of such educational
assistance (or such equivalent thereof) that is equal
to the number of months served by such individual on
active duty.
* * * * * * *
Sec. 3015. Amount of basic educational assistance
(a) The amount of payment of educational assistance under
this chapter is subject to section 3032 of this title. Except
as otherwise provided in subsections (b), (c), (d), (e), (f),
and (g) of this section, a basic educational assistance
allowance under this subchapter shall be paid--
(1) at the monthly rate of [$400] $421.62 for an
approved program of education pursued on a full-time
basis; or
* * * * * * *
(b) Except as provided in subsections (c), (d), (e), (f), and
(g), in the case of an individual entitled to an educational
assistance allowance under section 3011 or 3018 of this title
and whose initial obligated period of active duty is two years,
a basic educational assistance allowance under this chapter
shall be paid--
(1) at the monthly rate of [$325] $343.51 for an
approved program of education pursued on a full-time
basis; or
* * * * * * *
(f) In the case of an individual for whom the Secretary of
Defense made contributions under section 3222(c) of this title
and who is entitled to educational assistance under section
3018A, 3018B, or 3018C of this chapter, the Secretary shall
increase the rate of the basic educational assistance allowance
applicable to such individual in excess of the rate provided
under subsection (a) of this section in a manner consistent
with, as determined by the Secretary of Defense, the agreement
entered into with such individual pursuant to the rules and
regulations issued by the Secretary of Defense under section
3222(c) of this title.
* * * * * * *
Sec. 3018C. Enrollment of certain VEAP-enrolled individuals
(a) Notwithstanding any other provision of law, the Secretary
of Defense shall allow 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;
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) the Secretary shall collect $1,200 from the
individual, 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) as provided in section 3223(b) of this title, to
the individual 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 of this title. Recepit of such
notice shall be acknowledged in writing.
SUBCHAPTER IV--TIME LIMITATION FOR USE OF ELIGIBILITY AND ENTITLEMENT;
GENERAL AND ADMINISTRATIVE PROVISIONS
* * * * * * *
Sec. 3035. Allocation of administration and of program costs
(a) * * *
(b)(1) Except to the extent provided in paragraphs (2) and
(3) of this subsection, payments for entitlement earned under
subchapter II of this chapter shall be made from funds
appropriated to, or otherwise available to, the Department of
Veterans Affairs for the payment of readjustment benefits and
from transfers from the Post-Vietnam Era Veterans Education
Account pursuant to section 3232(b)(2)(B) of this title.
* * * * * * *
(3) Payment for entitlements established under section 3018A
[or 3018B], 3018B, or 3018C of this title shall be made--
(A) except as provided in subparagraphs (B) and (C)
of this paragraph, from the Department of Defense
Education Benefits Fund established under section 2006
of title 10;
* * * * * * *
CHAPTER 31--TRAINING AND REHABILITATION FOR VETERANS WITH SERVICE-
CONNECTED DISABILITIES
* * * * * * *
Sec. 3101. Definitions
For the purposes of this chapter--
(1) The term ``employment handicap'' means an impairment,
resulting in substantial part from a disability described in
section 3102(1)(A) of this title, of a veteran's ability to
prepare for, obtain, or retain employment consistent with such
veteran's abilities, aptitudes, and interests.
* * * * * * *
(6) The term ``rehabilitation program'' means (A) a
vocational rehabilitation program, or (B) a program of
independent living services and assistance authorized under
section 3120 of this title for a veteran for whom a vocational
goal has been determined not to be currently reasonably
feasible.
(7) The term ``serious employment handicap'' means a
significant impairment, resulting in substantial part from a
service-connected disability rated at 10 percent or more, of a
veteran's ability to prepare for, obtain, or retain employment
consistent with such veteran's abilities, aptitudes, and
interests.
* * * * * * *
Sec. 3102. Basic entitlement
A person shall be entitled to a rehabilitation program under
the terms and conditions of this chapter if--
(1) the person--
(A) is--
(i) a veteran who has a service-
connected disability [which is, or but
for the receipt of retired pay would
be, compensable at a rate of 20 percent
or more under chapter 11 of this title]
rated at 20 percent or more and which
was incurred or aggravated in service
on or after September 16, 1940; or
(2) the person is a veteran who--
(A) has a service-connected disability [which
is, or but for the receipt of retired pay would
be, compensable at a rate of 10 percent under
chapter 11 of this title] rated at 10 percent
and which was incurred or aggravated in service
on or after September 16, 1940; and
[(B) has a serious employment handicap.]
(B) is determined by the Secretary to be in
need of rehabilitation because of a serious
employment handicap.
* * * * * * *
Sec. 3103. Periods of eligibility
(a) * * *
(b)(1) * * *
* * * * * * *
(3) In any case in which the Secretary determines that a
veteran has been prevented from participating in a vocational
rehabilitation program under this chapter within the period of
eligibility prescribed in subsection (a) of this section
because such veteran had not established the existence of a
service-connected disability [described in section
3102(1)(A)(i) of this title] rated at 10 percent or more, the
twelve-year period of eligibility shall not run during the
period such veteran was so prevented from participating in such
a program.
(c) In any case in which the Secretary determines that a
veteran is in need of services to overcome a serious employment
handicap, such veteran may be afforded a vocational
rehabilitation program after the expiration of the period of
eligibility otherwise applicable to such veteran if the
Secretary also determines, on the basis of such veteran's
[particular] current employment handicap and need for such
services, that an extension of the applicable period of
eligibility is necessary for such veteran and--
(1) that such veteran had not previously been
rehabilitated to the point of employability;
(2) that such veteran had previously been
rehabilitated to the point of employability but (A) the
need for such services had arisen out of a worsening of
such veteran's service-connected disability that
precludes such veteran from performing the duties of
the occupation for which such veteran was previously
trained in a vocational rehabilitation program under
this chapter, or (B) the occupation for which such
veteran had been so trained is not suitable in view of
such [veteran's employment] veteran's current
employment handicap and capabilities; or
(d) In any case in which the Secretary has determined that a
veteran's disability or disabilities are so severe that the
achievement of a vocational goal currently is not reasonably
feasible, such veteran may be afforded a program of independent
living services and assistance [under this chapter] in
accordance with the provisions of section 3120 of this title
after the expiration of the period of eligibility otherwise
applicable to such veteran if the Secretary also determines
that an extension of the period of eligibility of such veteran
is necessary for such veteran to achieve maximum independence
in daily living.
Sec. 3104. Scope of services and assistance
(a) Services and assistance which the Secretary may provide
under this chapter, pursuant to regulations which the Secretary
shall prescribe, include the following:
(1) Evaluation, including periodic reevaluations as
appropriate with respect to a veteran participating in
a rehabilitation program, of the potential for
rehabilitation of a veteran, including diagnostic and
related services (A) to determine whether [such
veteran's disability or disabilities cause] the veteran
has an employment handicap or a serious employment
handicap and whether a vocational goal is reasonably
feasible for such veteran, and (B) to provide a basis
for planning a suitable vocational rehabilitation
program or a program of services and assistance to
improve the vocational rehabilitation potential or
independent living status of such veteran, as
appropriate.
* * * * * * *
(7)(A) Vocational and other training services and
assistance, including [(i)] individualized tutorial
assistance, tuition, fees, books, supplies, handling
charges, licensing fees, and equipment and other
training materials determined by the Secretary to be
necessary to accomplish the purposes of the
rehabilitation program in the individual case[, and
(ii) job-readiness skills development and counseling
under section 14(a)(2) of the Veterans' Job Training
Act (29 U.S.C. 1721 note) for a participant in a
program of training under such Act].
* * * * * * *
(12) [For the most severely disabled veterans
requiring] For veterans with the most severe service-
connected disabilities who require homebound training
or self-employment, or both homebound training and
self-employment, such license fees and essential
equipment, supplies, and minimum stocks of materials as
the Secretary determines to be necessary for such a
veteran to begin employment and are within the criteria
and cost limitations that the Secretary shall prescribe
in regulations for the furnishing of such fees,
equipment, supplies, and stocks.
* * * * * * *
[(b) A program of independent living services and assistance
may include the types of services and assistance described in
section 702 of the Rehabilitation Act of 1973 (29 U.S.C.
796a).]
[(c)] (b) A rehabilitation program (including individual
courses) to be pursued by a veteran shall be subject to the
approval of the Secretary.
* * * * * * *
Sec. 3105. Duration of rehabilitation programs
(a) * * *
* * * * * * *
(c) The Secretary may extend the period of a vocational
rehabilitation program for a veteran to the extent that the
Secretary determines that an extension of such period is
necessary to enable such veteran to achieve a vocational goal
if the Secretary also determines--
(1) that such veteran had previously been
rehabilitated to the point of employability but (A)
such veteran's need for further vocational
rehabilitation has arisen out of a worsening of such
veteran's service-connected disability that precludes
such veteran from performing the duties of the
occupation for which such veteran had been so
rehabilitated, or (B) the occupation for which such
veteran had been so rehabilitated is not suitable in
view of such [veteran's employment] veteran's current
employment handicap and capabilities; or
* * * * * * *
Sec. 3106. Initial and extended evaluations; determinations regarding
serious employment handicap
(a) The Secretary shall provide any veteran who has a
service-connected disability [described in clause (i) or (ii)
of section 3102(1)(A) of this title] rated at 10 percent or
more and who applies for benefits under this chapter with an
initial evaluation consisting of such services described in
section 3104(a)(1) of this title as are necessary (1) to
determine whether such veteran is entitled to and eligible for
benefits under this chapter, and (2) in the case of a veteran
who is determined to be entitled to and eligible for such
benefits, to determine--
(A) whether such veteran has a serious employment
handicap, and
(B) whether the achievement of a vocational goal
currently is reasonably feasible for such veteran if it
is reasonably feasible to make such determination
without extended evaluation.
(b) In any case in which the Secretary has determined that a
veteran has a serious employment handicap and that the
achievement of a vocational goal currently is reasonably
feasible for such veteran, such veteran shall be provided
[counseling in accordance with] an individualized written plan
of vocational rehabilitation developed under section 3107(a) of
this title.
(c) In any case in which the Secretary has determined that a
veteran has a serious employment handicap but the Secretary is
unable to determine, in an initial evaluation pursuant to
subsection (a) of this section, whether or not the achievement
of a vocational goal currently is reasonably feasible, such
veteran shall be provided with an extended evaluation
consisting of the services described in section 3104(a)(1) of
this title, such services under this chapter as the Secretary
determines necessary to improve such veteran's potential for
participation in a program of services designed to achieve a
vocational goal and enable such veteran to achieve maximum
independence in daily living, and assistance as authorized by
section 3108 of this title.
(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.
[(d)] (e) The Secretary shall in all cases determine as
expeditiously as possible whether the achievement of a
vocational goal by a veteran currently is reasonably feasible.
In the case of a veteran provided extended evaluation under
subsection (c) of this section (including any periods of
extensions under section 3105(a) of this title), the Secretary
shall make such determination not later than the end of such
extended evaluation or period of extension, as the case may be.
In determining whether the achievement of a vocational goal
currently is reasonably feasible, the Secretary shall resolve
any reasonable doubt in favor of determining that such
achievement currently is reasonably feasible.
[(e)] (f) In connection with each period of extended
evaluation of a veteran and each rehabilitation program for a
veteran who is determined to have a serious employment
handicap, the Secretary shall assign a Department of Veterans
Affairs employee to be responsible for the management and
followup of the provision of all services (including
appropriate coordination of employment assistance under section
3117 of this title) and assistance under this chapter to such
veteran.
Sec. 3107. Individualized vocational rehabilitation plan
(a) * * *
* * * * * * *
(c)(1) * * *
(2) In any case in which a veteran does not agree to such
plan as proposed, to such plan as redeveloped, or to the
disapproval of redevelopment of such plan, such veteran may
submit to the person described in section [3106(e)] 3106(f) of
this title a written statement containing such veteran's
objections and request a review of such plan as proposed or
redeveloped, or a review of the disapproval of redevelopment of
such plan, as the case may be.
* * * * * * *
Sec. 3108. Allowances
(a)(1) * * *
(2) In any case in which the Secretary determines, at the
conclusion of such veteran's pursuit of a vocational
rehabilitation program under this chapter, that such veteran
has been rehabilitated to the point of employability, such
veteran shall be paid a subsistence allowance, as prescribed in
this section for full-time training for the type of program
that the veteran was pursuing, for two months [following the
conclusion of such pursuit] while satisfactorily following a
program of employment services provided under section
3104(a)(5) of this title.
* * * * * * *
(f)(1)(A) In any case in which the Secretary determines that
a veteran is eligible for and entitled to rehabilitation under
this chapter, to the extent that such veteran has remaining
eligibility for and entitlement to educational assistance
benefits under [chapter 30 or 34] chapter 30 of this title,
such veteran may elect, as part of a vocational rehabilitation
program under this chapter, to pursue an approved program of
education and receive allowances and other forms of assistance
equivalent to those authorized for veterans enrolled under
[either chapter 30 or chapter 34] chapter 30 of this title, if
the Secretary approves the educational, professional, or
vocational objective chosen by such veteran for such program.
(B) In the event that such veteran makes such an election,
the terms and conditions applicable to the pursuit of a
comparable program of education and the payment of allowances
and provision of assistance under [chapter 30 or 34] chapter 30
of this title for such a comparable program shall be applied to
the pursuit of the approved program of education under this
chapter.
* * * * * * *
Sec. 3109. Entitlement to independent living services and assistance
In any case in which the Secretary has determined under
section [3106(d)] 3106(e) of this title that the achievement of
a vocational goal by a veteran currently is not reasonably
feasible, such veteran shall be entitled, in accordance with
the provisions of section 3120 of this title, to a program of
independent living services and assistance designed to enable
such veteran to achieve maximum independence in daily living.
* * * * * * *
Sec. 3117. Employment assistance
(a)(1) A veteran with a service-connected disability rated at
10 percent or more who has participated in a vocational
rehabilitation program under this chapter or a similar program
under the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.)
and who the Secretary has determined to be employable shall be
furnished assistance in obtaining employment consistent with
such veteran's abilities, aptitudes, interests, and employment
handicap, including assistance necessary to insure that such
veteran receives the benefit of any applicable provisions of
law or regulation providing for special consideration or
emphasis or preference for such veteran in employment or
training.
* * * * * * *
Sec. 3118. Personnel training, development, and qualifications
(a) * * *
* * * * * * *
(c) Notwithstanding any other provision of law, the Secretary
shall establish such qualifications for personnel providing
evaluation and rehabilitation services to veterans under this
chapter and for employees performing the functions described in
section [3106(e)] 3106(f) of this title as the Secretary
determines are necessary and appropriate to insure the quality
of rehabilitation programs under this chapter. In establishing
such qualifications, the Secretary shall take into account the
qualifications established for comparable personnel under the
Rehabilitation Act of 1973 (29 U.S.C. ch. 16).
* * * * * * *
Sec. 3120. Program of independent living services and assistance
(a) * * *
(b) A program of independent living services and assistance
may be made available under this section only to a veteran who
has a [service-connected disability described in section
3102(1)(A)] serious employment handicap resulting in
substantial part from a service-connected disability described
in section 3102(1)(A)(i) of this title and with respect to whom
it is determined under section [3106(d)] 3106(d) or (e) of this
title that the achievement of a vocational goal currently is
not reasonably feasible.
* * * * * * *
(d) A program of independent living services and assistance
for a veteran shall consist of such services described in
section 3104(a) [and (b)] of this title as the Secretary
determines necessary to enable such veteran to achieve maximum
independence in daily living. Such veteran shall have the same
rights with respect to an individualized written plan of
services and assistance as are afforded veterans under section
3107 of this title.
* * * * * * *
CHAPTER 32--POST-VIETNAM ERA EDUCATIONAL ASSISTANCE
* * * * * * *
SUBCHAPTER III--ENTITLEMENT; DURATION
* * * * * * *
Sec. 3232. Duration; limitations
(a) * * *
(b)(1) In the event that an eligible veteran has not utilized
any or all of such veteran's entitlement by the end of the
delimiting period applicable to the veteran under subsection
(a) of this section and at the end of one year thereafter has
not filed a claim for utilizing such entitlement, such eligible
veteran is automatically disenrolled.
(2)(A) Any contributions which were made by a veteran
disenrolled under paragraph (1) of this subsection and remain
in the fund shall be refunded to the veteran after notice of
disenrollment is transmitted to the veteran and the veteran
applies for such refund.
(B) If no application for refund of contributions under
subparagraph (A) of this paragraph is received from a
disenrolled veteran within one year after the date the notice
referred to in such subparagraph is transmitted to the veteran,
it shall be presumed[, for the purposes of section 1322(a) of
title 31,] that the veteran's whereabouts is unknown and the
funds shall be transferred [as provided in such section] to the
Secretary for payments for entitlement earned under subchapter
II of chapter 30.
* * * * * * *
CHAPTER 34--VETERANS' EDUCATIONAL ASSISTANCE
* * * * * * *
SUBCHAPTER I--PURPOSE; DEFINITIONS
* * * * * * *
Sec. 3452. Definitions
For the purposes of this chapter and chapter 36 of this
title--
(a) * * *
* * * * * * *
(c) The term ``educational institution'' means any public or
private elementary school, secondary school, vocational school,
correspondence school, business school, junior college,
teachers' college, college, normal school, professional school,
university, or scientific or technical institution, or other
institution furnishing education for adults. [For the period
ending on September 30, 1996, such] Such term includes any
entity that provides training required for completion of any
State-approved alternative teacher certification program (as
determined by the Secretary).
* * * * * * *
CHAPTER 39--AUTOMOBILES AND ADAPTIVE EQUIPMENT FOR CERTAIN DISABLED
VETERANS AND MEMBERS OF THE ARMED FORCES
* * * * * * *
Sec. 3902. Assistance for providing automobile and adaptive equipment
(a) The Secretary, under regulations which the Secretary
shall prescribe, shall provide or assist in providing an
automobile or other conveyance to each eligible person by
paying the total purchase price of the automobile or other
conveyance (including all State, local, and other taxes) or
[$5,500] $6,500, whichever is the lesser, to the seller from
whom the eligible person is purchasing under a sales agreement
between the seller and the eligible person.
* * * * * * *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS
* * * * * * *
CHAPTER 51--CLAIMS, EFFECTIVE DATES, AND PAYMENTS
* * * * * * *
SUBCHAPTER II--EFFECTIVE DATES
* * * * * * *
Sec. 5110. Effective dates of awards
(a) * * *
* * * * * * *
(d)(1) * * *
* * * * * * *
(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.
* * * * * * *
Sec. 5112. Effective dates of reductions and discontinuances
(a) * * *
(b) The effective date of a reduction or discontinuance of
compensation, dependency and indemnity compensation, or
pension--
[(1) by reason of marriage or remarriage, or death of
a payee shall be the last day of the month before such
marriage, remarriage, or death occurs;]
(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;
* * * * * * *
(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.
* * * * * * *
SUBCHAPTER III--PAYMENT OF BENEFITS
Sec. 5121. Payment of certain accrued benefits upon death of a
beneficiary
(a) Except as provided in sections 3329 and 3330 of title 31,
periodic monetary benefits (other than insurance and
servicemen's indemnity) under laws administered by the
Secretary to which an individual was entitled at death under
existing ratings or decisions, or those based on evidence in
the file at date of death (hereafter in this section and
section 5122 of this title referred to as ``accrued benefits'')
and due and unpaid for a period not to exceed [one year] two
years, shall, upon the death of such individual be paid as
follows:
(1) * * *
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PART V--BOARDS, ADMINISTRATIONS, AND SERVICES
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CHAPTER 72--UNITED STATES COURT OF VETERANS APPEALS
subchapter i--organization and jurisdiction
Sec.
7251. Status.
7252. Jurisdiction; finality of decisions.
* * * * * * *
subchapter iii--miscellaneous provisions
7281. Employees.
* * * * * * *
7287. Legal assistance for financially needy veterans in proceedings
before the Court.
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SUBCHAPTER III--MISCELLANEOUS PROVISIONS
* * * * * * *
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).
(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.
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SECTION 1322 OF TITLE 31, UNITED STATES CODE
Sec. 1322. Payments of unclaimed trust fund amounts and refund of
amounts erroneously deposited
(a) On September 30 of each year, the Secretary of the
Treasury shall transfer to the Treasury trust fund receipt
account ``Unclaimed Moneys of Individuals Whose Whereabouts are
Unknown'' that part of the balance of a trust fund account
named in section 1321(a)(1)-[(82)] (81) of this title or an
analogous trust fund established under section 1321(b) of this
title that has been in the fund for more than one year and
represents money belonging to individuals whose whereabouts are
unknown. Subsequent claims to the transferred funds shall be
paid from the account ``Unclaimed Moneys of Individuals Whose
Whereabouts are Unknown''.
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