104TH CONGRESS

2D SESSION H. R. 3674

AN ACT

To amend title 38, United States Code, to clarify

and for other purposes.Assistance Program to the Montgomery GI Bill,ments from the Post-Vietnam Era Educationaltransfer certain educational assistance entitlefor training and rehabilitation assistance, tohandicap for purposes of determining eligibilityan’s service-connected disability and employmentthe causal relationship required between a veter-
104TH CONGRESS

2D SESSION H. R. 3674

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 Assist-
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ance 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,

3 SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38,

4 UNITED STATES CODE.

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

6 ‘‘Veterans’ Education and Compensation Benefits Amend7 ments of 1996’’.

8 (b) REFERENCES.—Except as otherwise expressly

9 provided, whenever in this Act an amendment is expressed

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

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

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

13 TITLE I—VETERANS’ EDUCATION

14 PROGRAMS

15 SEC. 101. EMPLOYMENT HANDICAP FOR WHICH AN INDI16 VIDUAL MAY RECEIVE TRAINING AND REHA17 BILITATION ASSISTANCE.

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

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

20 in substantial part from a disability described in sec21 tion 3102(1)(A) of this title,’’ after ‘‘impairment’’;

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

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

24 and
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1 (3) in paragraph (7), by inserting ‘‘, resulting

2 in substantial part from a service-connected disabil3 ity rated at 10 percent or more,’’ after ‘‘impair4 ment’’.

5 (b) BASIC ENTITLEMENT.—Section 3102 is amend6 ed—

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

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

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

10 20 percent or more’’;

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

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

13 title’’ and inserting in lieu thereof ‘‘rated at 10 per14 cent’’; and

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

16 follows:

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

18 in need of rehabilitation because of a serious

19 employment handicap.’’.

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

21 amended—

22 (1) in subsection (b)(3), by striking out ‘‘de23 scribed in section 3102(1)(A)(i) of this title’’ and in24 serting in lieu thereof ‘‘rated at 10 percent or

25 more’’;
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1 (2) in subsection (c)—

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

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

4 lieu thereof ‘‘current’’; and

5 (B) in paragraph (2), by striking out ‘‘vet6 eran’s employment’’ and inserting in lieu there7 of ‘‘veteran’s current employment’’; and

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

9 this chapter’’ and inserting in lieu thereof ‘‘in ac10 cordance with the provisions of section 3120 of this

11 title’’.

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

13 3104 is amended—

14 (1) in subsection (a)—

15 (A) in paragraph (1)—

16 (i) by striking out ‘‘such veteran’s dis17 ability or disabilities cause’’ and inserting

18 in lieu thereof ‘‘the veteran has an employ19 ment handicap or’’; and

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

21 ‘‘goal is’’;

22 (B) in paragraph (7)(A)—

23 (i) by striking out ‘‘(i)’’; and

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

25 that follows through ‘‘such Act’’; and
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1 (C) in paragraph (12), by striking out

2 ‘‘For the most severely disabled veterans requir3 ing’’ and inserting in lieu thereof ‘‘For veterans

4 with the most severe service-connected disabil5 ities who require’’; and

6 (2) by striking out subsection (b) and redesig7 nating subsection (c) as subsection (b).

8 (e) DURATION OF REHABILITATION PROGRAMS.—

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

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

11 ‘‘veteran’s current employment’’.

12 (f) INITIAL AND EXTENDED EVALUATIONS; DETER13 MINATIONS REGARDING SERIOUS EMPLOYMENT HANDI14 CAP.—(1) Section 3106 is amended—

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

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

17 title’’ and inserting in lieu thereof ‘‘rated at 10 per18 cent or more’’;

19 (B) in subsection (b), by striking out ‘‘counsel20 ing in accordance with’’;

21 (C) in subsection (c), by striking out ‘‘with ex22 tended’’ and inserting in lieu thereof ‘‘with an ex23 tended’’; and
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1 (D) by redesignating subsections (d) and (e) as

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

3 after subsection (c) the following new subsection:

4 ‘‘(d) In any case in which the Secretary has deter5 mined that a veteran has a serious employment handicap

6 and also determines, following such initial and any such

7 extended evaluation, that achievement of a vocational goal

8 currently is not reasonably feasible, the Secretary shall de9 termine whether the veteran is capable of participating in

10 a program of independent living services and assistance

11 under section 3120 of this title.’’.

12 (2) Chapter 31 is amended—

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

14 ‘‘3106(e)’’ and inserting in lieu thereof ‘‘3106(f)’’;

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

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

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

18 ‘‘3106(e)’’ and inserting in lieu thereof ‘‘3106(f)’’;

19 and

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

21 ‘‘3106(d)’’ and inserting in lieu thereof ‘‘3106(d) or

22 (e)’’.

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

24 (1) in subsection (a)(2), by striking out ‘‘follow25 ing the conclusion of such pursuit’’ and inserting in
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1 lieu thereof ‘‘while satisfactorily following a program

2 of employment services provided under section

3 3104(a)(5) of this title’’; and

4 (2) in subsection (f)(1)—

5 (A) in subparagraph (A)—

6 (i) by inserting ‘‘eligible for and’’

7 after ‘‘veteran is’’;

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

9 34’’ and inserting in lieu thereof ‘‘chapter

10 30’’; and

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

12 or chapter 34’’ and inserting in lieu there13 of ‘‘chapter 30’’; and

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

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

16 ‘‘chapter 30’’.

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

18 section 3117(a) is amended by inserting ‘‘rated at 10 per19 cent or more’’ after ‘‘disability’’.

20 (i) PROGRAM OF INDEPENDENT LIVING SERVICES

21 AND ASSISTANCE.—Section 3120 is amended—

22 (1) in subsection (b), by striking out ‘‘service23 connected disability described in section 3102(1)(A)’’

24 and inserting in lieu thereof ‘‘serious employment

25 handicap resulting in substantial part from a serv-
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1 ice-connected disability described in section

2 3102(1)(A)(i)’’; and

3 (2) in subsection (d), by striking out ‘‘and (b)’’.

4 (j) EFFECTIVE DATE.—(1) Except as provided in

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

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

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

8 than paragraph (2)), subsection (d) (other than subpara9 graphs (A) and (B) of paragraph (1)), and subsection (i)

10 shall only apply with respect to claims of eligibility or enti11 tlement to services and assistance (including claims for ex12 tension of such services and assistance) under chapter 31

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

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

15 those claims based on original applications, and applica16 tions seeking to reopen, revise, reconsider, or otherwise ad17 judicate or readjudicate on any basis claims for services

18 and assistance under such chapter.

19 SEC. 102. INCREASE IN BASIC MONTGOMERY GI BILL

20 RATES.

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

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

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

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

25 and inserting in lieu thereof ‘‘$343.51’’.
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1 (b) EFFECTIVE DATE.—The amendments made by

2 subsection (a) shall take effect on October 1, 1996.

3 SEC. 103. ENROLLMENT OF CERTAIN VEAP PARTICIPANTS

4 IN MONTGOMERY GI BILL.

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

6 amended by inserting after section 3018B the following

7 new section:

8 ‘‘§ 3018C. Opportunity for certain VEAP participants

9 to enroll

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

11 individual who—

12 ‘‘(1) is a participant on the date of the enact13 ment of the Veterans’ Education and Compensation

14 Benefits Amendments of 1996 in the educational

15 benefits program provided by chapter 32;

16 ‘‘(2) is serving on active duty (excluding the pe17 riods referred to in section 3202(1)(C)) on such

18 date;

19 ‘‘(3) before applying for benefits under this sec20 tion, has completed the requirements of a secondary

21 school diploma (or equivalency certificate) or has

22 successfully completed the equivalent of 12 semester

23 hours in a program of education leading to a stand24 ard college degree;
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1 ‘‘(4) if discharged or released from active duty

2 during the 180-day period specified in paragraph

3 (5), is discharged or released therefrom with an hon4 orable discharge; and

5 ‘‘(5) before 180 days after the date of the en6 actment of the Veterans’ Education and Compensa7 tion Benefits Amendments of 1996, makes an irrev8 ocable election to receive benefits under this section

9 in lieu of benefits under chapter 32 of this title, pur10 suant to procedures which the Secretary of each

11 military department shall provide in accordance with

12 regulations prescribed by the Secretary of Defense

13 for the purpose of carrying out this section or which

14 the Secretary of Transportation shall provide for

15 such purpose with respect to the Coast Guard when

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

17 may elect to become entitled to basic educational assist18 ance under this chapter.

19 ‘‘(b) With respect to an individual who makes an elec20 tion under subsection (a) to become entitled to basic edu21 cation assistance under this chapter—

22 ‘‘(1) the basic pay of the individual shall be re23 duced (in a manner determined by the Secretary of

24 Defense) until the total amount by which such basic

25 pay is reduced is $1,200; or
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1 ‘‘(2) to the extent that basic pay is not so re2 duced before the individual’s discharge or release

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

4 this section, the Secretary shall collect from the indi5 vidual an amount equal to the difference between

6 $1,200 and the total amount of reductions under

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

8 of the United States as miscellaneous receipts.

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

10 subsection, an individual who is enrolled in the educational

11 benefits program provided by chapter 32 of this title and

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

13 this section shall be disenrolled from such chapter 32 pro14 gram as of the date of such election.

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

16 program, the Secretary shall refund—

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

18 3223(b) of this title and subject to subsection (b)(2)

19 of this section, the unused contributions made by the

20 individual to the Post-Vietnam Era Veterans Edu21 cation Account established pursuant to section

22 3222(a) of this title; and

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

24 contributions (other than contributions made under
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1 section 3222(c) of this title) made by such Secretary

2 to the Account on behalf of such individual.

3 ‘‘(3) Any contribution made by the Secretary of De4 fense to the Post-Vietnam Era Veterans Education Ac5 count pursuant to subsection (c) of section 3222 of this

6 title on behalf of any individual referred to in paragraph

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

8 make payments of benefits to such individual under sec9 tion 3015(f) of this title.

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

11 to in subsection (a) shall provide for notice of the require12 ments of subparagraphs (B), (C), and (D) of section

13 3011(a)(3) and of subparagraph (A) of section 3012(a)(3)

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

15 in writing.’’.

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

17 sections at the beginning of chapter 30 is amended by in18 serting after the item relating to section 3018B the follow19 ing new item:

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

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

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

22 3018B, or 3018C’’.

23 (3) Subsection (f) of section 3015 is amended by in24 serting ‘‘, 3018B, or 3018C’’ after ‘‘section 3018A’’.
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1 (4) Paragraph (3) of section 3035(b) is amended by

2 striking out ‘‘or 3018B’’ in the matter preceding subpara3 graph (A) and inserting in lieu thereof ‘‘, 3018B, or

4 3018C’’.

5 (c) TRANSFER OF EDUCATIONAL ASSISTANCE

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

7 amended—

8 (A) by striking out ‘‘, for the purposes of sec9 tion 1322(a) of title 31,’’; and

10 (B) by striking out ‘‘as provided in such sec11 tion’’ and inserting in lieu thereof ‘‘to the Secretary

12 for payments for entitlement earned under sub13 chapter II of chapter 30’’.

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

15 amended by inserting before the period at the end the fol16 lowing: ‘‘and from transfers from the Post-Vietnam Era

17 Veterans Education Account pursuant to section

18 3232(b)(2)(B) of this title’’.

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

20 States Code, is amended by striking out ‘‘(82)’’ and in21 serting in lieu thereof ‘‘(81)’’.
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1 SEC. 104. MONTGOMERY GI BILL ELIGIBILITY FOR CERTAIN

2 ACTIVE DUTY MEMBERS OF ARMY AND AIR

3 NATIONAL GUARD.

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

5 amended by striking out ‘‘November 29, 1989’’ and insert6 ing in lieu thereof ‘‘June 30, 1985’’.

7 (b) APPLICATION.—(1) An individual may only be8 come eligible for benefits under chapter 30 of title 38,

9 United States Code, as a result of the amendment made

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

11 to basic educational assistance under such chapter. The

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

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

14 manner required by the Secretary of Defense.

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

16 under paragraph (1)—

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

18 member of the Armed Forces, makes an election

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

20 determined by the Secretary of Defense) until the

21 total amount by which such basic pay is reduced is

22 $1,200; or

23 (B) to the extent that basic pay is not so re24 duced before the individual’s discharge or release

25 from active duty, the Secretary of Defense shall col26 lect from an individual who makes such an election
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1 an amount equal to the difference between $1,200

2 and the total amount of reductions under subpara3 graph (A), which amount shall be paid into the

4 Treasury of the United States as miscellaneous re5 ceipts.

6 (3) In the case of any individual making an election

7 under paragraph (1), the 10-year period referred to in sec8 tion 3031 of such title shall begin on the later of—

9 (A) the date determined under such section

10 3031; or

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

12 of this subsection becomes effective.

13 SEC. 105. PERMANENT AUTHORITY FOR ALTERNATIVE

14 TEACHER CERTIFICATION PROGRAMS.

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

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

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

18 TITLE II—VETERANS’ BENEFITS

19 PROGRAMS

20 SEC. 201. EFFECTIVE DATE OF DISCONTINUANCE OF CER21 TAIN VETERANS’ BENEFITS BY REASON OF

22 DEATH OF RECIPIENT.

23 (a) DATE OF DISCONTINUANCE OF BENEFITS.—Sec24 tion 5112(b)(1) of title 38, United States Code, is amend25 ed to read as follows:
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1 ‘‘(1) by reason of—

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

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

4 the month during which such marriage or re5 marriage occurs; and

6 ‘‘(B) the death of the payee, shall be (i)

7 the last day of the month before the month dur8 ing which the death occurs, or (ii) in the case

9 of a payee who was in receipt of compensation

10 or pension and who has a surviving spouse who

11 is not entitled to have benefits computed under

12 section 5310 of this title for the month in which

13 the death occurs, the date on which the death

14 occurs;’’.

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

16 Section 5112 of such title is further amended by adding

17 at the end the following new subsection:

18 ‘‘(d) In the case of discontinuance of payment of com19 pensation or pension covered by subsection (b)(1)(B)(ii),

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

21 thereof) for which such benefit is payable shall (notwith22 standing any other provision of law) be payable to the sur23 viving spouse.’’.
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1 (c) COMMENCEMENT DATE FOR DIC.—Section

2 5110(d) of such title is amended by adding at the end

3 the following new paragraph:

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

5 date of an award of dependency and indemnity compensa6 tion for which application is received within one year from

7 the date of death shall, in the case of a surviving spouse

8 who is not entitled to have benefits computed under sec9 tion 5310 of this title for the month in which the death

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

11 occurred.’’.

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

13 this section shall apply with respect to the death of com14 pensation and pension recipients occurring after October

15 1, 1997.

16 SEC. 202. INCREASE IN PERIOD FOR WHICH ACCRUED BEN17 EFITS PAYABLE.

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

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

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

21 SEC. 203. INCREASE IN AUTOMOBILE ALLOWANCE.

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

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

24 thereof ‘‘$6,500’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

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

3 automobiles and other conveyances on or after the date

4 of the enactment of this Act.

5 SECTION 204. LEGAL ASSISTANCE FOR FINANCIALLY

6 NEEDY VETERANS IN CONNECTION WITH

7 COURT OF VETERANS APPEALS PROCEED8 INGS.

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

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

11 ‘‘§ 7287. Legal assistance for financially needy veter12 ans in proceedings before the Court

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

14 funds in order to provide financial assistance by grant or

15 contract to legal assistance entities for purposes of pro16 grams described in subsection (b). Such funds shall be

17 provided from amounts transferred to the Court under

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

19 for the purposes of this section.

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

21 purpose through a nonprofit organization selected by it.

22 If the Court determines that there exists no nonprofit or23 ganization that would be an appropriate recipient of funds

24 under this section for the purposes referred to in para25 graph (1) and that it is consistent with the mission of the
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1 Court, the Court shall provide financial assistance, by

2 grant or contract, directly to legal assistance entities for

3 purposes of permitting such entities to carry out programs

4 described in subsection (b).

5 ‘‘(b)(1) A program referred to in subsection (a) is any

6 program under which a legal assistance entity uses finan7 cial assistance under this section to provide assistance or

8 carry out activities (including assistance, services, or ac9 tivities referred to in paragraph (3)) in order to ensure

10 that individuals described in paragraph (2) receive, with11 out charge, legal assistance in connection with decisions

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

13 other proceedings before the Court.

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

15 veteran or other person who—

16 ‘‘(A) is or seeks to be a party to an action be17 fore the Court; and

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

19 entity concerned, afford the costs of legal advice and

20 representation in connection with that action.

21 ‘‘(3) Assistance, services, and activities under a pro22 gram described in this subsection may include the follow23 ing for individuals described in paragraph (2) in connec24 tion with proceedings before the Court:
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1 ‘‘(A) Financial assistance to defray the ex2 penses of legal advice or representation (other than

3 payment of attorney fees) by attorneys, clinical law

4 programs of law schools, and veterans service orga5 nizations.

6 ‘‘(B) Case screening and referral services for

7 purposes of referring cases to pro bono attorneys

8 and such programs and organizations.

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

10 other legal personnel who may appear before the

11 Court by attorneys and such programs and organiza12 tions.

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

14 bono representation by attorneys and such programs

15 and organizations.

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

17 assistance described in subsection (a) to carry out a pro18 gram under this subsection shall make such contributions

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

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

21 shall specify when providing the assistance.

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

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

24 described in this subsection may not require or request

25 the payment of a charge or fee in connection with the pro-
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1 gram by or on behalf of any individual described in para2 graph (2).

3 ‘‘(c)(1)(A) From amounts appropriated to the De4 partment for each of fiscal years 1997 through 2003 for

5 the payment of compensation and pension, the Secretary

6 shall transfer to the Court the amount specified under

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

8 funds shall be available for use by the Court only in ac9 cordance with this section.

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

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

12 for fiscal year 1997 and the same amount for each suc13 ceeding fiscal year through fiscal year 2003 increased by

14 3 percent per year, reduced for any such fiscal year by

15 such amount as may otherwise be specifically appropriated

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

17 fiscal year.

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

19 the purposes of the program under this section to a non20 profit organization described in subsection (a)(1). Such

21 funds shall be provided to such organization in advance

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

23 administrative costs of the organization in providing finan24 cial assistance to legal assistance entities carrying out pro25 grams described in subsection (b).
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1 ‘‘(3) Funds shall be provided under this subsection

2 pursuant to a written agreement entered into by the Court

3 and the organization receiving the funds.

4 ‘‘(d) A nonprofit organization may—

5 ‘‘(1) accept funds, in advance or by way of re6 imbursement, from the Court under subsection

7 (a)(1) in order to provide the financial assistance re8 ferred to in that subsection;

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

10 contract to legal assistance entities under this sec11 tion for purposes of permitting such entities to carry

12 out programs described in subsection (b);

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

14 ‘‘(4) accept funds, in advance or by way of re15 imbursement, from the Court under subsection (c) in

16 order to cover the administrative costs referred to in

17 that subsection.

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

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

20 financial assistance provided under this section during the

21 preceding fiscal year. Based on the information provided

22 the Court by entities receiving such funds and assistance,

23 each report shall—

24 ‘‘(A) set forth the amount, if any, of funds pro25 vided to nonprofit organizations under paragraph
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1 (1) of subsection (a) during the fiscal year covered

2 by the report;

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

4 assistance provided to legal assistance entities pur5 suant to paragraph (1) of subsection (a) or under

6 paragraph (2) of that subsection during that fiscal

7 year;

8 ‘‘(C) set forth the amount, if any, of funds pro9 vided to nonprofit organizations under subsection (c)

10 during that fiscal year; and

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

12 this section during that fiscal year.

13 ‘‘(2) The Court may require that any nonprofit orga14 nization and any legal assistance entity to which funds or

15 financial assistance are provided under this section provide

16 the Court with such information on the programs carried

17 out under this section as the Court determines necessary

18 to prepare a report under this subsection.

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

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

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

22 the provision of legal assistance to persons unable to

23 afford such assistance.

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

25 not-for-profit organization or veterans service orga-
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1 nization capable of providing legal assistance to per2 sons with respect to matters before the Court.

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

4 means an organization referred to in section

5 5902(a)(1) of this title, including an organization

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

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

8 at the beginning of such chapter is amended by inserting

9 after the item relating to section 7286 the following new

10 item:

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

Court.’’.

Passed the House of Representatives July 16, 1996.

Attest:

Clerk.