Union Calendar No. 329

104TH CONGRESS

2D SESSION H. R. 3674

[Report No. 104–650]

A BILL

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 veterJUNE 27, 1996

Committed to the Committee of the Whole House on the

State of the Union and ordered to be printed
IB

Union Calendar No. 329

104TH CONGRESS

2D SESSION H. R. 3674

[Report No. 104–650]

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 HOUSE OF REPRESENTATIVES

JUNE 19, 1996

Mr. STUMP (for himself, Mr. MONTGOMERY, Mr. BUYER, Mr. EVERETT, Mr.

EVANS, and Mr. MASCARA) introduced the following bill; which was referred to the Committee on Veterans’ Affairs

JUNE 27, 1996

Additional sponsors: Mr. SMITH of New Jersey, Mr. HUTCHINSON, Mr. BILIRAKIS, Mr. TEJEDA, Mr. FOX of Pennsylvania, Mr. WELLER, and Mr.

STEARNS

JUNE 27, 1996

Committed to the Committee of the Whole House on the State of the Union

and ordered to be printed

A BILL

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
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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,

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’’;
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1 (2) in paragraph (6), by inserting ‘‘authorized

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

3 and

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

5 in substantial part from a service-connected disabil6 ity rated at 10 percent or more,’’ after ‘‘impair7 ment’’.

8 (b) BASIC ENTITLEMENT.—Section 3102 is amend9 ed—

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

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

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

13 20 percent or more’’;

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

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

16 title’’ and inserting in lieu thereof ‘‘rated at 10 per17 cent’’; and

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

19 follows:

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

21 in need of rehabilitation because of a serious

22 employment handicap.’’.

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

24 amended—
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1 (1) in subsection (b)(3), by striking out ‘‘de2 scribed in section 3102(1)(A)(i) of this title’’ and in3 serting in lieu thereof ‘‘rated at 10 percent or

4 more’’;

5 (2) in subsection (c)—

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

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

8 lieu thereof ‘‘current’’; and

9 (B) in paragraph (2), by striking out ‘‘vet10 eran’s employment’’ and inserting in lieu there11 of ‘‘veteran’s current employment’’; and

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

13 this chapter’’ and inserting in lieu thereof ‘‘in ac14 cordance with the provisions of section 3120 of this

15 title’’.

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

17 3104 is amended—

18 (1) in subsection (a)—

19 (A) in paragraph (1)—

20 (i) by striking out ‘‘such veteran’s dis21 ability or disabilities cause’’ and inserting

22 in lieu thereof ‘‘the veteran has an employ23 ment handicap or’’; and

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

25 ‘‘goal is’’;
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1 (B) in paragraph (7)(A)—

2 (i) by striking out ‘‘(i)’’; and

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

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

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

6 ‘‘For the most severely disabled veterans requir7 ing’’ and inserting in lieu thereof ‘‘For veterans

8 with the most severe service-connected disabil9 ities who require’’; and

10 (2) by striking out subsection (b) and redesig11 nating subsection (c) as subsection (b).

12 (e) DURATION OF REHABILITATION PROGRAMS.—

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

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

15 ‘‘veteran’s current employment’’.

16 (f) INITIAL AND EXTENDED EVALUATIONS; DETER17 MINATIONS REGARDING SERIOUS EMPLOYMENT HANDI18 CAP.—(1) Section 3106 is amended—

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

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

21 title’’ and inserting in lieu thereof ‘‘rated at 10 per22 cent or more’’;

23 (B) in subsection (b), by striking out ‘‘counsel24 ing in accordance with’’;
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1 (C) in subsection (c), by striking out ‘‘with ex2 tended’’ and inserting in lieu thereof ‘‘with an ex3 tended’’; and

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

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

6 after subsection (c) the following new subsection:

7 ‘‘(d) In any case in which the Secretary has deter8 mined that a veteran has a serious employment handicap

9 and also determines, following such initial and any such

10 extended evaluation, that achievement of a vocational goal

11 currently is not reasonably feasible, the Secretary shall de12 termine whether the veteran is capable of participating in

13 a program of independent living services and assistance

14 under section 3120 of this title.’’.

15 (2) Chapter 31 is amended—

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

17 ‘‘3106(e)’’ and inserting in lieu thereof ‘‘3106(f)’’;

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

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

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

21 ‘‘3106(e)’’ and inserting in lieu thereof ‘‘3106(f)’’;

22 and

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

24 ‘‘3106(d)’’ and inserting in lieu thereof ‘‘3106(d) or

25 (e)’’.
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1 (g) ALLOWANCES.—Section 3108 is amended—

2 (1) in subsection (a)(2), by striking out ‘‘follow3 ing the conclusion of such pursuit’’ and inserting in

4 lieu thereof ‘‘while satisfactorily following a program

5 of employment services provided under section

6 3104(a)(5) of this title’’; and

7 (2) in subsection (f)(1)—

8 (A) in subparagraph (A)—

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

10 after ‘‘veteran is’’;

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

12 34’’ and inserting in lieu thereof ‘‘chapter

13 30’’; and

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

15 or chapter 34’’ and inserting in lieu there16 of ‘‘chapter 30’’; and

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

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

19 ‘‘chapter 30’’.

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

21 section 3117(a) is amended by inserting ‘‘rated at 10 per22 cent or more’’ after ‘‘disability’’.

23 (i) PROGRAM OF INDEPENDENT LIVING SERVICES

24 AND ASSISTANCE.—Section 3120 is amended—
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1 (1) in subsection (b), by striking out ‘‘service2 connected disability described in section 3102(1)(A)’’

3 and inserting in lieu thereof ‘‘serious employment

4 handicap resulting in substantial part from a serv5 ice-connected disability described in section

6 3102(1)(A)(i)’’; and

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

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

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

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

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

12 than paragraph (2)), subsection (d) (other than subpara13 graphs (A) and (B) of paragraph (1)), and subsection (i)

14 shall only apply with respect to claims of eligibility or enti15 tlement to services and assistance (including claims for ex16 tension of such services and assistance) under chapter 31

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

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

19 those claims based on original applications, and applica20 tions seeking to reopen, revise, reconsider, or otherwise ad21 judicate or readjudicate on any basis claims for services

22 and assistance under such chapter.

23 SEC. 102. INCREASE IN BASIC MONTGOMERY GI BILL

24 RATES.

25 (a) IN GENERAL.—Section 3015 is amended—
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1 (1) in subsection (a)(1), by striking out ‘‘$400’’

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

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

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

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

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

7 SEC. 103. ENROLLMENT OF CERTAIN VEAP-ENROLLED IN8 DIVIDUALS IN MONTGOMERY GI BILL.

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

10 amended by inserting after section 3018B the following

11 new section:

12 ‘‘§ 3018C. Enrollment of certain VEAP-enrolled indi13 viduals

14 ‘‘(a) Notwithstanding any other provision of law, the

15 Secretary of Defense shall allow an individual who—

16 ‘‘(1) is a participant on the date of the enact17 ment of the Veterans’ Education and Compensation

18 Benefits Amendments of 1996 in the educational

19 benefits program provided by chapter 32;

20 ‘‘(2) is serving on active duty (excluding the pe21 riods referred to in section 3202(1)(C)) on such

22 date;

23 ‘‘(3) before applying for benefits under this sec24 tion, has completed the requirements of a secondary

25 school diploma (or equivalency certificate) or has
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1 successfully completed the equivalent of 12 semester

2 hours in a program of education leading to a stand3 ard college degree;

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

5 during the 180-day period specified in paragraph

6 (5), is discharged or released therefrom with an hon7 orable discharge; and

8 ‘‘(5) before 180 days after the date of the en9 actment of the Veterans’ Education and Compensa10 tion Benefits Amendments of 1996, makes an irrev11 ocable election to receive benefits under this section

12 in lieu of benefits under chapter 32 of this title, pur13 suant to procedures which the Secretary of each

14 military department shall provide in accordance with

15 regulations prescribed by the Secretary of Defense

16 for the purpose of carrying out this section or which

17 the Secretary of Transportation shall provide for

18 such purpose with respect to the Coast Guard when

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

20 to become entitled to basic educational assistance under

21 this chapter.

22 ‘‘(b) With respect to an individual who makes an elec23 tion under subsection (a) to become entitled to basic edu24 cation assistance under this chapter—
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1 ‘‘(1) the basic pay of the individual shall be re2 duced (in a manner determined by the Secretary of

3 Defense) until the total amount by which such basic

4 pay is reduced is $1,200; or

5 ‘‘(2) the Secretary shall collect $1,200 from the

6 individual, which shall be paid into the Treasury of

7 the United States as miscellaneous receipts.

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

9 subsection, an individual who is enrolled in the educational

10 benefits program provided by chapter 32 of this title and

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

12 this section shall be disenrolled from such chapter 32 pro13 gram as of the date of such election.

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

15 program, the Secretary shall refund—

16 ‘‘(A) as provided in section 3223(b) of this title,

17 to the individual the unused contributions made by

18 the individual to the Post-Vietnam Era Veterans

19 Education Account established pursuant to section

20 3222(a) of this title; and

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

22 contributions (other than contributions made under

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

24 to the Account on behalf of such individual.
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1 ‘‘(3) Any contribution made by the Secretary of De2 fense to the Post-Vietnam Era Veterans Education Ac3 count pursuant to subsection (c) of section 3222 of this

4 title on behalf of any individual referred to in paragraph

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

6 make payments of benefits to such individual under sec7 tion 3015(f) of this title.

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

9 to in subsection (a) shall provide for notice of the require10 ments of subparagraphs (B), (C), and (D) of section

11 3011(a)(3) and of subparagraph (A) of section 3012 of

12 this title. Receipt of such notice shall be acknowledged in

13 writing.’’.

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

15 sections at the beginning of chapter 30 is amended by in16 serting after the item relating to section 3018B the follow17 ing new item:

‘‘3018C. Enrollment of certain VEAP-enrolled individuals.’’.

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

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

20 3018B, or 3018C’’.

21 (3) Subsection (f) of section 3015 is amended by in22 serting ‘‘, 3018B, or 3018C’’ after ‘‘section 3018A’’.

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

24 striking out ‘‘or 3018B’’ in the matter preceding subpara-
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1 graph (A) and inserting in lieu thereof ‘‘, 3018B, or

2 3018C’’.

3 (c) TRANSFER OF EDUCATIONAL ASSISTANCE

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

5 amended—

6 (A) by striking out ‘‘, for the purposes of sec7 tion 1322(a) of title 31,’’; and

8 (B) by striking out ‘‘as provided in such sec9 tion’’ and inserting in lieu thereof ‘‘to the Secretary

10 for payments for entitlement earned under sub11 chapter II of chapter 30’’.

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

13 amended by inserting before the period at the end the fol14 lowing: ‘‘and from transfers from the Post-Vietnam Era

15 Veterans Education Account pursuant to section

16 3232(b)(2)(B) of this title’’.

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

18 States Code, is amended by striking out ‘‘(82)’’ and in19 serting in lieu thereof ‘‘(81)’’.

20 SEC. 104. MONTGOMERY GI BILL ELIGIBILITY FOR CERTAIN

21 ACTIVE DUTY MEMBERS OF ARMY AND AIR

22 NATIONAL GUARD.

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

24 amended by striking out ‘‘November 29, 1989’’ and insert25 ing in lieu thereof ‘‘June 30, 1985’’.
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1 (b) APPLICATION.—(1) An individual may only be2 come eligible for benefits under chapter 30 of title 38,

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

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

5 to basic educational assistance under such chapter. The

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

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

8 manner required by the Secretary of Defense.

9 (2) REDUCTION IN PAY OR LUMP SUM DEPOSIT.—

10 In the case of any individual making an election under

11 paragraph (1), the Secretary of Defense shall collect and

12 deposit $1,200 from each such individual making an elec13 tion under paragraph (1) in the manner required by sec14 tion 3018(B)(b) of such title.

15 (3) TIME LIMITATION FOR USE OF ELIGIBILITY AND

16 ENTITLEMENT.—In the case of any individual making an

17 election under paragraph (1), the 10-year period referred

18 to in section 3031 of such title shall begin on the later

19 of—

20 (A) the date determined under such section

21 3031; or

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

23 of this subsection becomes effective.
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1 SEC. 105. PERMANENT AUTHORITY FOR ALTERNATIVE

2 TEACHER CERTIFICATION PROGRAMS.

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

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

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

6 TITLE II—VETERANS’ BENEFITS

7 PROGRAMS

8 SEC. 201. EFFECTIVE DATE OF DISCONTINUANCE OF CER9 TAIN VETERANS’ BENEFITS BY REASON OF

10 DEATH OF RECIPIENT.

11 (a) DATE OF DISCONTINUANCE OF BENEFITS.—Sec12 tion 5112(b)(1) of title 38, United States Code, is amend13 ed to read as follows:

14 ‘‘(1) by reason of—

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

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

17 the month during which such marriage or re18 marriage occurs; and

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

20 the last day of the month before the month dur21 ing which the death occurs, or (ii) in the case

22 of a payee who was in receipt of compensation

23 or pension and who has a surviving spouse who

24 is not entitled to have benefits computed under

25 section 5310 of this title for the month in which
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1 the death occurs, the date on which the death

2 occurs;’’.

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

4 Section 5112 of such title is further amended by adding

5 at the end the following new subsection:

6 ‘‘(d) In the case of discontinuance of payment of com7 pensation or pension covered by subsection (b)(1)(B)(ii),

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

9 thereof) for which such benefit is payable shall (notwith10 standing any other provision of law) be payable to the sur11 viving spouse.’’.

12 (c) COMMENCEMENT DATE FOR DIC.—Section

13 5110(d) of such title is amended by adding at the end

14 the following new paragraph:

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

16 date of an award of dependency and indemnity compensa17 tion for which application is received within one year from

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

19 who is not entitled to have benefits computed under sec20 tion 5310 of this title for the month in which the death

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

22 occurred.’’.

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

24 this section shall apply with respect to the death of com-
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1 pensation and pension recipients occurring after October

2 1, 1997.

3 SEC. 202. INCREASE IN PERIOD FOR WHICH ACCRUED BEN4 EFITS PAYABLE.

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

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

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

8 SEC. 203. INCREASE IN AUTOMOBILE ALLOWANCE.

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

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

11 thereof ‘‘$6,500’’.

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

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

14 automobiles and other conveyances on or after the date

15 of the enactment of this Act.

16 SEC. 204. LEGAL ASSISTANCE FOR FINANCIALLY NEEDY

17 VETERANS IN CONNECTION WITH COURT OF

18 VETERANS APPEALS PROCEEDINGS.

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

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

21 ‘‘§ 7287. Legal assistance for financially needy veter22 ans in proceedings before the Court

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

24 funds in order to provide financial assistance by grant or
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1 contract to legal assistance entities for purposes of pro2 grams described in subsection (b).

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

4 purpose through a nonprofit organization selected by it.

5 If the Court determines that there exists no nonprofit or6 ganization that would be an appropriate recipient of funds

7 under this section for the purposes referred to in para8 graph (1) and that it is consistent with the mission of the

9 Court, the Court shall provide financial assistance, by

10 grant or contract, directly to legal assistance entities for

11 purposes of permitting such entities to carry out programs

12 described in subsection (b).

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

14 program under which a legal assistance entity uses finan15 cial assistance under this section to provide assistance or

16 carry out activities (including assistance, services, or ac17 tivities referred to in paragraph (3)) in order to ensure

18 that individuals described in paragraph (2) receive, with19 out charge, legal assistance in connection with decisions

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

21 other proceedings before the Court.

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

23 veteran or other person who—

24 ‘‘(A) is or seeks to be a party to an action be25 fore the Court; and
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1 ‘‘(B) cannot, as determined by the Court or the

2 entity concerned, afford the costs of legal advice and

3 representation in connection with that action.

4 ‘‘(3) Assistance, services, and activities under a pro5 gram described in this subsection may include the follow6 ing for individuals described in paragraph (2) in connec7 tion with proceedings before the Court:

8 ‘‘(A) Financial assistance to defray the ex9 penses of legal advice or representation (other than

10 payment of attorney fees) by attorneys, clinical law

11 programs of law schools, and veterans service orga12 nizations.

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

14 purposes of referring cases to pro bono attorneys

15 and such programs and organizations.

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

17 other legal personnel who may appear before the

18 Court by attorneys and such programs and organiza19 tions.

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

21 bono representation by attorneys and such programs

22 and organizations.

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

24 assistance described in subsection (a) to carry out a pro25 gram under this subsection shall make such contributions
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1 (including in-kind contributions) to the program as the

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

3 shall specify when providing the assistance.

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

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

6 described in this subsection may not require or request

7 the payment of a charge or fee in connection with the pro8 gram by or on behalf of any individual described in para9 graph (2).

10 ‘‘(c)(1)(A) From amounts appropriated to the De11 partment for each of fiscal years 1997 through 2003 for

12 the payment of compensation and pension, the Secretary

13 shall transfer to the Court the amount specified under

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

15 funds shall be available for use by the Court only in ac16 cordance with this section.

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

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

19 for fiscal year 1997 and the same amount for each suc20 ceeding fiscal year through fiscal year 2003 increased by

21 3 percent per year, reduced for any such fiscal year by

22 such amount as may otherwise be specifically appropriated

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

24 fiscal year.
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1 ‘‘(2) The Court shall provide funds available to it for

2 the purposes of the program under this section to a non3 profit organization described in subsection (a)(1). Such

4 funds shall be provided to such organization in advance

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

6 administrative costs of the organization in providing finan7 cial assistance to legal assistance entities carrying out pro8 grams described in subsection (b).

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

10 pursuant to a written agreement entered into by the Court

11 and the organization receiving the funds.

12 ‘‘(d) A nonprofit organization may—

13 ‘‘(1) accept funds, in advance or by way of re14 imbursement, from the Court under subsection

15 (a)(1) in order to provide the financial assistance re16 ferred to in that subsection;

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

18 contract to legal assistance entities under this sec19 tion for purposes of permitting such entities to carry

20 out programs described in subsection (b);

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

22 ‘‘(4) accept funds, in advance or by way of re23 imbursement, from the Court under subsection (c) in

24 order to cover the administrative costs referred to in

25 that subsection.
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1 ‘‘(e)(1) Not later than February 1 of each year, the

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

3 financial assistance provided under this section during the

4 preceding fiscal year. Based on the information provided

5 the Court by entities receiving such funds and assistance,

6 each report shall—

7 ‘‘(A) set forth the amount, if any, of funds pro8 vided to nonprofit organizations under paragraph

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

10 by the report;

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

12 assistance provided to legal assistance entities pur13 suant to paragraph (1) of subsection (a) or under

14 paragraph (2) of that subsection during that fiscal

15 year;

16 ‘‘(C) set forth the amount, if any, of funds pro17 vided to nonprofit organizations under subsection (c)

18 during that fiscal year; and

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

20 this section during that fiscal year.

21 ‘‘(2) The Court may require that any nonprofit orga22 nization and any legal assistance entity to which funds or

23 financial assistance are provided under this section provide

24 the Court with such information on the programs carried
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1 out under this section as the Court determines necessary

2 to prepare a report under this subsection.

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

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

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

6 the provision of legal assistance to persons unable to

7 afford such assistance.

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

9 not-for-profit organization or veterans service orga10 nization capable of providing legal assistance to per11 sons with respect to matters before the Court.

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

13 means an organization referred to in section

14 5902(a)(1) of this title, including an organization

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

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

17 at the beginning of such chapter is amended by inserting

18 after the item relating to section 7286 the following new

19 item:

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

Court.’’.