IIA

104TH CONGRESS

2D SESSION 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.

IN THE SENATE OF THE UNITED STATES

JULY 17, 1996

Received: read twice and referred to the Committee on Veterans’ Affairs

AN ACT

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38,

2 UNITED STATES CODE.

3 (a) SHORT TITLE.—This Act may be cited as the

4 ‘‘Veterans’ Education and Compensation Benefits Amend5 ments of 1996’’.

6 (b) REFERENCES.—Except as otherwise expressly

7 provided, whenever in this Act an amendment is expressed

8 in terms of an amendment to a section or other provision,

9 the reference shall be considered to be made to a section

10 or other provision of title 38, United States Code.

11 TITLE I—VETERANS’ EDUCATION

12 PROGRAMS

13 SEC. 101. EMPLOYMENT HANDICAP FOR WHICH AN INDI14 VIDUAL MAY RECEIVE TRAINING AND REHA15 BILITATION ASSISTANCE.

16 (a) DEFINITIONS.—Section 3101 is amended—

17 (1) in paragraph (1), by inserting ‘‘, resulting

18 in substantial part from a disability described in sec19 tion 3102(1)(A) of this title,’’ after ‘‘impairment’’;

20 (2) in paragraph (6), by inserting ‘‘authorized

21 under section 3120 of this title’’ after ‘‘assistance’’;

22 and

23 (3) in paragraph (7), by inserting ‘‘, resulting

24 in substantial part from a service-connected disabil25 ity rated at 10 percent or more,’’ after ‘‘impair26 ment’’.
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1 (b) BASIC ENTITLEMENT.—Section 3102 is amend2 ed—

3 (1) in paragraph (1)(A)(i), by striking out

4 ‘‘which is’’ and all that follows through ‘‘chapter 11

5 of this title’’ and inserting in lieu thereof ‘‘rated at

6 20 percent or more’’;

7 (2) in paragraph (2)(A), by striking out ‘‘which

8 is’’ and all that follows through ‘‘chapter 11 of this

9 title’’ and inserting in lieu thereof ‘‘rated at 10 per10 cent’’; and

11 (3) by amending paragraph (2)(B) to read as

12 follows:

13 ‘‘(B) is determined by the Secretary to be

14 in need of rehabilitation because of a serious

15 employment handicap.’’.

16 (c) PERIODS OF ELIGIBILITY.—Section 3103 is

17 amended—

18 (1) in subsection (b)(3), by striking out ‘‘de19 scribed in section 3102(1)(A)(i) of this title’’ and in20 serting in lieu thereof ‘‘rated at 10 percent or

21 more’’;

22 (2) in subsection (c)—

23 (A) in the matter preceding paragraph (1),

24 by striking out ‘‘particular’’ and inserting in

25 lieu thereof ‘‘current’’; and
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1 (B) in paragraph (2), by striking out ‘‘vet2 eran’s employment’’ and inserting in lieu there3 of ‘‘veteran’s current employment’’; and

4 (3) in subsection (d), by striking out ‘‘under

5 this chapter’’ and inserting in lieu thereof ‘‘in ac6 cordance with the provisions of section 3120 of this

7 title’’.

8 (d) SCOPE OF SERVICES AND ASSISTANCE.—Section

9 3104 is amended—

10 (1) in subsection (a)—

11 (A) in paragraph (1)—

12 (i) by striking out ‘‘such veteran’s dis13 ability or disabilities cause’’ and inserting

14 in lieu thereof ‘‘the veteran has an employ15 ment handicap or’’; and

16 (ii) by inserting ‘‘reasonably’’ after

17 ‘‘goal is’’;

18 (B) in paragraph (7)(A)—

19 (i) by striking out ‘‘(i)’’; and

20 (ii) by striking out ‘‘, and (ii)’’ and all

21 that follows through ‘‘such Act’’; and

22 (C) in paragraph (12), by striking out

23 ‘‘For the most severely disabled veterans requir24 ing’’ and inserting in lieu thereof ‘‘For veterans
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1 with the most severe service-connected disabil2 ities who require’’; and

3 (2) by striking out subsection (b) and redesig4 nating subsection (c) as subsection (b).

5 (e) DURATION OF REHABILITATION PROGRAMS.—

6 Paragraph (1) of section 3105(c) is amended by striking

7 out ‘‘veteran’s employment’’ and inserting in lieu thereof

8 ‘‘veteran’s current employment’’.

9 (f) INITIAL AND EXTENDED EVALUATIONS; DETER10 MINATIONS REGARDING SERIOUS EMPLOYMENT HANDI11 CAP.—(1) Section 3106 is amended—

12 (A) in subsection (a), by striking out ‘‘described

13 in clause (i) or (ii) of section 3102(1)(A) of this

14 title’’ and inserting in lieu thereof ‘‘rated at 10 per15 cent or more’’;

16 (B) in subsection (b), by striking out ‘‘counsel17 ing in accordance with’’;

18 (C) in subsection (c), by striking out ‘‘with ex19 tended’’ and inserting in lieu thereof ‘‘with an ex20 tended’’; and

21 (D) by redesignating subsections (d) and (e) as

22 subsections (e) and (f), respectively, and inserting

23 after subsection (c) the following new subsection:

24 ‘‘(d) In any case in which the Secretary has deter25 mined that a veteran has a serious employment handicap
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1 and also determines, following such initial and any such

2 extended evaluation, that achievement of a vocational goal

3 currently is not reasonably feasible, the Secretary shall de4 termine whether the veteran is capable of participating in

5 a program of independent living services and assistance

6 under section 3120 of this title.’’.

7 (2) Chapter 31 is amended—

8 (A) in section 3107(c)(2), by striking out

9 ‘‘3106(e)’’ and inserting in lieu thereof ‘‘3106(f)’’;

10 (B) in section 3109, by striking out ‘‘3106(d)’’

11 and inserting in lieu thereof ‘‘3106(e)’’;

12 (C) in section 3118(c), by striking out

13 ‘‘3106(e)’’ and inserting in lieu thereof ‘‘3106(f)’’;

14 and

15 (D) in section 3120(b), by striking out

16 ‘‘3106(d)’’ and inserting in lieu thereof ‘‘3106(d) or

17 (e)’’.

18 (g) ALLOWANCES.—Section 3108 is amended—

19 (1) in subsection (a)(2), by striking out ‘‘follow20 ing the conclusion of such pursuit’’ and inserting in

21 lieu thereof ‘‘while satisfactorily following a program

22 of employment services provided under section

23 3104(a)(5) of this title’’; and

24 (2) in subsection (f)(1)—

25 (A) in subparagraph (A)—
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1 (i) by inserting ‘‘eligible for and’’

2 after ‘‘veteran is’’;

3 (ii) by striking out ‘‘chapter 30 or

4 34’’ and inserting in lieu thereof ‘‘chapter

5 30’’; and

6 (iii) by striking out ‘‘either chapter 30

7 or chapter 34’’ and inserting in lieu there8 of ‘‘chapter 30’’; and

9 (B) in subparagraph (B), by striking out

10 ‘‘chapter 30 or 34’’ and inserting in lieu thereof

11 ‘‘chapter 30’’.

12 (h) EMPLOYMENT ASSISTANCE.—Paragraph (1) of

13 section 3117(a) is amended by inserting ‘‘rated at 10 per14 cent or more’’ after ‘‘disability’’.

15 (i) PROGRAM OF INDEPENDENT LIVING SERVICES

16 AND ASSISTANCE.—Section 3120 is amended—

17 (1) in subsection (b), by striking out ‘‘service18 connected disability described in section 3102(1)(A)’’

19 and inserting in lieu thereof ‘‘serious employment

20 handicap resulting in substantial part from a serv21 ice-connected disability described in section

22 3102(1)(A)(i)’’; and

23 (2) in subsection (d), by striking out ‘‘and (b)’’.
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1 (j) EFFECTIVE DATE.—(1) Except as provided in

2 paragraph (2), the amendments made by this section shall

3 take effect on the date of the enactment of this Act.

4 (2) The amendments made by subsection (a) (other

5 than paragraph (2)), subsection (d) (other than subpara6 graphs (A) and (B) of paragraph (1)), and subsection (i)

7 shall only apply with respect to claims of eligibility or enti8 tlement to services and assistance (including claims for ex9 tension of such services and assistance) under chapter 31

10 of title 38, United States Code, received by the Secretary

11 on or after the date of the enactment of this Act, including

12 those claims based on original applications, and applica13 tions seeking to reopen, revise, reconsider, or otherwise ad14 judicate or readjudicate on any basis claims for services

15 and assistance under such chapter.

16 SEC. 102. INCREASE IN BASIC MONTGOMERY GI BILL

17 RATES.

18 (a) IN GENERAL.—Section 3015 is amended—

19 (1) in subsection (a)(1), by striking out ‘‘$400’’

20 and inserting in lieu thereof ‘‘$421.62’’; and

21 (2) in subsection (b)(1), by striking out ‘‘$325’’

22 and inserting in lieu thereof ‘‘$343.51’’.

23 (b) EFFECTIVE DATE.—The amendments made by

24 subsection (a) shall take effect on October 1, 1996.
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1 SEC. 103. ENROLLMENT OF CERTAIN VEAP PARTICIPANTS

2 IN MONTGOMERY GI BILL.

3 (a) IN GENERAL.—Subchapter II of chapter 30 is

4 amended by inserting after section 3018B the following

5 new section:

6 ‘‘§ 3018C. Opportunity for certain VEAP participants

7 to enroll

8 ‘‘(a) Notwithstanding any other provision of law, an

9 individual who—

10 ‘‘(1) is a participant on the date of the enact11 ment of the Veterans’ Education and Compensation

12 Benefits Amendments of 1996 in the educational

13 benefits program provided by chapter 32;

14 ‘‘(2) is serving on active duty (excluding the pe15 riods referred to in section 3202(1)(C)) on such

16 date;

17 ‘‘(3) before applying for benefits under this sec18 tion, has completed the requirements of a secondary

19 school diploma (or equivalency certificate) or has

20 successfully completed the equivalent of 12 semester

21 hours in a program of education leading to a stand22 ard college degree;

23 ‘‘(4) if discharged or released from active duty

24 during the 180-day period specified in paragraph

25 (5), is discharged or released therefrom with an hon26 orable discharge; and
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1 ‘‘(5) before 180 days after the date of the en2 actment of the Veterans’ Education and Compensa3 tion Benefits Amendments of 1996, makes an irrev4 ocable election to receive benefits under this section

5 in lieu of benefits under chapter 32 of this title, pur6 suant to procedures which the Secretary of each

7 military department shall provide in accordance with

8 regulations prescribed by the Secretary of Defense

9 for the purpose of carrying out this section or which

10 the Secretary of Transportation shall provide for

11 such purpose with respect to the Coast Guard when

12 it is not operating as a service in the Navy;

13 may elect to become entitled to basic educational assist14 ance under this chapter.

15 ‘‘(b) With respect to an individual who makes an elec16 tion under subsection (a) to become entitled to basic edu17 cation assistance under this chapter—

18 ‘‘(1) the basic pay of the individual shall be re19 duced (in a manner determined by the Secretary of

20 Defense) until the total amount by which such basic

21 pay is reduced is $1,200; or

22 ‘‘(2) to the extent that basic pay is not so re23 duced before the individual’s discharge or release

24 from active duty as specified in subsection (a)(4) of

25 this section, the Secretary shall collect from the indi-
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1 vidual an amount equal to the difference between

2 $1,200 and the total amount of reductions under

3 paragraph (1), which shall be paid into the Treasury

4 of the United States as miscellaneous receipts.

5 ‘‘(c)(1) Except as provided in paragraph (3) of this

6 subsection, an individual who is enrolled in the educational

7 benefits program provided by chapter 32 of this title and

8 who makes the election described in subsection (a)(5) of

9 this section shall be disenrolled from such chapter 32 pro10 gram as of the date of such election.

11 ‘‘(2) For each individual who is disenrolled from such

12 program, the Secretary shall refund—

13 ‘‘(A) to the individual, as provided in section

14 3223(b) of this title and subject to subsection (b)(2)

15 of this section, the unused contributions made by the

16 individual to the Post-Vietnam Era Veterans Edu17 cation Account established pursuant to section

18 3222(a) of this title; and

19 ‘‘(B) to the Secretary of Defense the unused

20 contributions (other than contributions made under

21 section 3222(c) of this title) made by such Secretary

22 to the Account on behalf of such individual.

23 ‘‘(3) Any contribution made by the Secretary of De24 fense to the Post-Vietnam Era Veterans Education Ac25 count pursuant to subsection (c) of section 3222 of this
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1 title on behalf of any individual referred to in paragraph

2 (1) of this subsection shall remain in such account to

3 make payments of benefits to such individual under sec4 tion 3015(f) of this title.

5 ‘‘(d) The procedures provided in regulations referred

6 to in subsection (a) shall provide for notice of the require7 ments of subparagraphs (B), (C), and (D) of section

8 3011(a)(3) and of subparagraph (A) of section 3012(a)(3)

9 of this title. Receipt of such notice shall be acknowledged

10 in writing.’’.

11 (b) CONFORMING AMENDMENTS.—(1) The table of

12 sections at the beginning of chapter 30 is amended by in13 serting after the item relating to section 3018B the follow14 ing new item:

‘‘3018C. Opportunity for certain VEAP participants to enroll.’’.

15 (2) Subsection (d) of section 3013 is amended by

16 striking out ‘‘or 3018B’’ and inserting in lieu thereof ‘‘,

17 3018B, or 3018C’’.

18 (3) Subsection (f) of section 3015 is amended by in19 serting ‘‘, 3018B, or 3018C’’ after ‘‘section 3018A’’.

20 (4) Paragraph (3) of section 3035(b) is amended by

21 striking out ‘‘or 3018B’’ in the matter preceding subpara22 graph (A) and inserting in lieu thereof ‘‘, 3018B, or

23 3018C’’.
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1 (c) TRANSFER OF EDUCATIONAL ASSISTANCE

2 FUNDS.—(1) Subparagraph (B) of section 3232(b)(2) is

3 amended—

4 (A) by striking out ‘‘, for the purposes of sec5 tion 1322(a) of title 31,’’; and

6 (B) by striking out ‘‘as provided in such sec7 tion’’ and inserting in lieu thereof ‘‘to the Secretary

8 for payments for entitlement earned under sub9 chapter II of chapter 30’’.

10 (2) Paragraph (1) of section 3035(b) of such title is

11 amended by inserting before the period at the end the fol12 lowing: ‘‘and from transfers from the Post-Vietnam Era

13 Veterans Education Account pursuant to section

14 3232(b)(2)(B) of this title’’.

15 (3) Subsection (a) of section 1322 of title 31, United

16 States Code, is amended by striking out ‘‘(82)’’ and in17 serting in lieu thereof ‘‘(81)’’.

18 SEC. 104. MONTGOMERY GI BILL ELIGIBILITY FOR CERTAIN

19 ACTIVE DUTY MEMBERS OF ARMY AND AIR

20 NATIONAL GUARD.

21 (a) IN GENERAL.—Paragraph (7) of section 3002 is

22 amended by striking out ‘‘November 29, 1989’’ and insert23 ing in lieu thereof ‘‘June 30, 1985’’.

24 (b) APPLICATION.—(1) An individual may only be25 come eligible for benefits under chapter 30 of title 38,
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1 United States Code, as a result of the amendment made

2 by subsection (a) by making an election to become entitled

3 to basic educational assistance under such chapter. The

4 election may only be made within the nine-month period

5 beginning on the date of the enactment of this Act in the

6 manner required by the Secretary of Defense.

7 (2) In the case of any individual making an election

8 under paragraph (1)—

9 (A) the basic pay of an individual who, while a

10 member of the Armed Forces, makes an election

11 under paragraph (1) shall be reduced (in a manner

12 determined by the Secretary of Defense) until the

13 total amount by which such basic pay is reduced is

14 $1,200; or

15 (B) to the extent that basic pay is not so re16 duced before the individual’s discharge or release

17 from active duty, the Secretary of Defense shall col18 lect from an individual who makes such an election

19 an amount equal to the difference between $1,200

20 and the total amount of reductions under subpara21 graph (A), which amount shall be paid into the

22 Treasury of the United States as miscellaneous re23 ceipts.
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1 (3) In the case of any individual making an election

2 under paragraph (1), the 10-year period referred to in sec3 tion 3031 of such title shall begin on the later of—

4 (A) the date determined under such section

5 3031; or

6 (B) the date the election under paragraph (1)

7 of this subsection becomes effective.

8 SEC. 105. PERMANENT AUTHORITY FOR ALTERNATIVE

9 TEACHER CERTIFICATION PROGRAMS.

10 Subsection (c) of section 3452 is amended by striking

11 out ‘‘For the period ending on September 30, 1996, such’’

12 and inserting in lieu thereof ‘‘Such’’.

13 TITLE II—VETERANS’ BENEFITS

14 PROGRAMS

15 SEC. 201. EFFECTIVE DATE OF DISCONTINUANCE OF CER16 TAIN VETERANS’ BENEFITS BY REASON OF

17 DEATH OF RECIPIENT.

18 (a) DATE OF DISCONTINUANCE OF BENEFITS.—Sec19 tion 5112(b)(1) of title 38, United States Code, is amend20 ed to read as follows:

21 ‘‘(1) by reason of—

22 ‘‘(A) the marriage or remarriage of the

23 payee, shall be the last day of the month before

24 the month during which such marriage or re25 marriage occurs; and
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1 ‘‘(B) the death of the payee, shall be (i)

2 the last day of the month before the month dur3 ing which the death occurs, or (ii) in the case

4 of a payee who was in receipt of compensation

5 or pension and who has a surviving spouse who

6 is not entitled to have benefits computed under

7 section 5310 of this title for the month in which

8 the death occurs, the date on which the death

9 occurs;’’.

10 (b) PAYMENT OF BENEFIT FOR FINAL MONTH.—

11 Section 5112 of such title is further amended by adding

12 at the end the following new subsection:

13 ‘‘(d) In the case of discontinuance of payment of com14 pensation or pension covered by subsection (b)(1)(B)(ii),

15 the payment for the final calendar month (or any portion

16 thereof) for which such benefit is payable shall (notwith17 standing any other provision of law) be payable to the sur18 viving spouse.’’.

19 (c) COMMENCEMENT DATE FOR DIC.—Section

20 5110(d) of such title is amended by adding at the end

21 the following new paragraph:

22 ‘‘(3) Notwithstanding paragraph (1), the effective

23 date of an award of dependency and indemnity compensa24 tion for which application is received within one year from

25 the date of death shall, in the case of a surviving spouse
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1 who is not entitled to have benefits computed under sec2 tion 5310 of this title for the month in which the death

3 occurs, be the day following the date on which the death

4 occurred.’’.

5 (d) EFFECTIVE DATE.—The amendments made by

6 this section shall apply with respect to the death of com7 pensation and pension recipients occurring after October

8 1, 1997.

9 SEC. 202. INCREASE IN PERIOD FOR WHICH ACCRUED BEN10 EFITS PAYABLE.

11 Subsection (a) of section 5121 is amended by striking

12 out ‘‘one year’’ in the matter preceding paragraph (1) and

13 inserting in lieu thereof ‘‘two years’’.

14 SEC. 203. INCREASE IN AUTOMOBILE ALLOWANCE.

15 (a) IN GENERAL.—Subsection (a) of section 3902 is

16 amended by striking out ‘‘$5,500’’ and inserting in lieu

17 thereof ‘‘$6,500’’.

18 (b) EFFECTIVE DATE.—The amendment made by

19 subsection (a) shall apply with respect to purchases of

20 automobiles and other conveyances on or after the date

21 of the enactment of this Act.
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1 SECTION 204. LEGAL ASSISTANCE FOR FINANCIALLY

2 NEEDY VETERANS IN CONNECTION WITH

3 COURT OF VETERANS APPEALS PROCEED4 INGS.

5 (a) IN GENERAL.—Subchapter III of chapter 72 is

6 amended by adding at the end the following new section:

7 ‘‘§ 7287. Legal assistance for financially needy veter8 ans in proceedings before the Court

9 ‘‘(a)(1) The Court of Veterans Appeals shall provide

10 funds in order to provide financial assistance by grant or

11 contract to legal assistance entities for purposes of pro12 grams described in subsection (b). Such funds shall be

13 provided from amounts transferred to the Court under

14 subsection (c)(1) or specifically appropriated to the Court

15 for the purposes of this section.

16 ‘‘(2) The Court shall seek to provide funds for such

17 purpose through a nonprofit organization selected by it.

18 If the Court determines that there exists no nonprofit or19 ganization that would be an appropriate recipient of funds

20 under this section for the purposes referred to in para21 graph (1) and that it is consistent with the mission of the

22 Court, the Court shall provide financial assistance, by

23 grant or contract, directly to legal assistance entities for

24 purposes of permitting such entities to carry out programs

25 described in subsection (b).
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1 ‘‘(b)(1) A program referred to in subsection (a) is any

2 program under which a legal assistance entity uses finan3 cial assistance under this section to provide assistance or

4 carry out activities (including assistance, services, or ac5 tivities referred to in paragraph (3)) in order to ensure

6 that individuals described in paragraph (2) receive, with7 out charge, legal assistance in connection with decisions

8 to which section 7252(a) of this title may apply or with

9 other proceedings before the Court.

10 ‘‘(2) An individual referred to in paragraph (1) is any

11 veteran or other person who—

12 ‘‘(A) is or seeks to be a party to an action be13 fore the Court; and

14 ‘‘(B) cannot, as determined by the Court or the

15 entity concerned, afford the costs of legal advice and

16 representation in connection with that action.

17 ‘‘(3) Assistance, services, and activities under a pro18 gram described in this subsection may include the follow19 ing for individuals described in paragraph (2) in connec20 tion with proceedings before the Court:

21 ‘‘(A) Financial assistance to defray the ex22 penses of legal advice or representation (other than

23 payment of attorney fees) by attorneys, clinical law

24 programs of law schools, and veterans service orga25 nizations.
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1 ‘‘(B) Case screening and referral services for

2 purposes of referring cases to pro bono attorneys

3 and such programs and organizations.

4 ‘‘(C) Education and training of attorneys and

5 other legal personnel who may appear before the

6 Court by attorneys and such programs and organiza7 tions.

8 ‘‘(D) Encouragement and facilitation of the pro

9 bono representation by attorneys and such programs

10 and organizations.

11 ‘‘(4) A legal assistance entity that receives financial

12 assistance described in subsection (a) to carry out a pro13 gram under this subsection shall make such contributions

14 (including in-kind contributions) to the program as the

15 nonprofit organization or the Court, as the case may be,

16 shall specify when providing the assistance.

17 ‘‘(5) A legal assistance entity that receives financial

18 assistance under subsection (a) to carry out a program

19 described in this subsection may not require or request

20 the payment of a charge or fee in connection with the pro21 gram by or on behalf of any individual described in para22 graph (2).

23 ‘‘(c)(1)(A) From amounts appropriated to the De24 partment for each of fiscal years 1997 through 2003 for

25 the payment of compensation and pension, the Secretary
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1 shall transfer to the Court the amount specified under

2 subparagraph (B) for each such fiscal year, and such

3 funds shall be available for use by the Court only in ac4 cordance with this section.

5 ‘‘(B) The amount to be transferred to the Court

6 under subparagraph (A) for any fiscal year is $700,000

7 for fiscal year 1997 and the same amount for each suc8 ceeding fiscal year through fiscal year 2003 increased by

9 3 percent per year, reduced for any such fiscal year by

10 such amount as may otherwise be specifically appropriated

11 for the purposes of the program under this section for that

12 fiscal year.

13 ‘‘(2) The Court shall provide funds available to it for

14 the purposes of the program under this section to a non15 profit organization described in subsection (a)(1). Such

16 funds shall be provided to such organization in advance

17 or by way of reimbursement, to cover some or all of the

18 administrative costs of the organization in providing finan19 cial assistance to legal assistance entities carrying out pro20 grams described in subsection (b).

21 ‘‘(3) Funds shall be provided under this subsection

22 pursuant to a written agreement entered into by the Court

23 and the organization receiving the funds.

24 ‘‘(d) A nonprofit organization may—
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1 ‘‘(1) accept funds, in advance or by way of re2 imbursement, from the Court under subsection

3 (a)(1) in order to provide the financial assistance re4 ferred to in that subsection;

5 ‘‘(2) provide financial assistance by grant or

6 contract to legal assistance entities under this sec7 tion for purposes of permitting such entities to carry

8 out programs described in subsection (b);

9 ‘‘(3) administer any such grant or contract; and

10 ‘‘(4) accept funds, in advance or by way of re11 imbursement, from the Court under subsection (c) in

12 order to cover the administrative costs referred to in

13 that subsection.

14 ‘‘(e)(1) Not later than February 1 of each year, the

15 Court shall submit to Congress a report on the funds and

16 financial assistance provided under this section during the

17 preceding fiscal year. Based on the information provided

18 the Court by entities receiving such funds and assistance,

19 each report shall—

20 ‘‘(A) set forth the amount, if any, of funds pro21 vided to nonprofit organizations under paragraph

22 (1) of subsection (a) during the fiscal year covered

23 by the report;

24 ‘‘(B) set forth the amount, if any, of financial

25 assistance provided to legal assistance entities pur-
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1 suant to paragraph (1) of subsection (a) or under

2 paragraph (2) of that subsection during that fiscal

3 year;

4 ‘‘(C) set forth the amount, if any, of funds pro5 vided to nonprofit organizations under subsection (c)

6 during that fiscal year; and

7 ‘‘(D) describe the programs carried out under

8 this section during that fiscal year.

9 ‘‘(2) The Court may require that any nonprofit orga10 nization and any legal assistance entity to which funds or

11 financial assistance are provided under this section provide

12 the Court with such information on the programs carried

13 out under this section as the Court determines necessary

14 to prepare a report under this subsection.

15 ‘‘(f) For the purposes of this section:

16 ‘‘(1) The term ‘nonprofit organization’ means

17 any not-for-profit organization that is involved with

18 the provision of legal assistance to persons unable to

19 afford such assistance.

20 ‘‘(2) The term ‘legal assistance entity’ means a

21 not-for-profit organization or veterans service orga22 nization capable of providing legal assistance to per23 sons with respect to matters before the Court.

24 ‘‘(3) The term ‘veterans service organization’

25 means an organization referred to in section
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1 5902(a)(1) of this title, including an organization

2 approved by the Secretary under that section.’’.

3 (b) CLERICAL AMENDMENT.—The table of sections

4 at the beginning of such chapter is amended by inserting

5 after the item relating to section 7286 the following new

6 item:

‘‘7287. Legal assistance for financially needy veterans in proceedings before the

Court.’’.

Passed the House of Representatives July 16, 1996.

Attest: ROBIN H. CARLE,

Clerk.