I
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 rehabili-
tation 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 re-
ferred to the Committee on Veterans’ Affairs
A BILL
To amend title 38, United States Code, to clarify the causal
relationship required between a veteran’s service-con-
nected disability and employment handicap for purposes
of determining eligibility for training and rehabilitation
assistance, to transfer certain educational assistance enti-
tlements from the Post-Vietnam Era Educational Assist-
ance Program to the Montgomery GI Bill, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38,
UNITED STATES CODE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Veterans’ Education and Compensation Benefits Amend-
ments of 1996’’.
(b) REFERENCES.—Except as otherwise expressly
provided, whenever in this Act an amendment is expressed
in terms of an amendment to a section or other provision,
the reference shall be considered to be made to a section
or other provision of title 38, United States Code.
TITLE I—VETERANS’ EDUCATION
PROGRAMS
SEC. 101. EMPLOYMENT HANDICAP FOR WHICH AN INDI-
VIDUAL MAY RECEIVE TRAINING AND REHA-
BILITATION ASSISTANCE.
(a) DEFINITIONS.—Section 3101 is amended—
(1) in paragraph (1), by inserting ‘‘, resulting
in substantial part from a disability described in sec-
tion 3102(1)(A) of this title,’’ after ‘‘impairment’’;
(2) in paragraph (6), by inserting ‘‘authorized
under section 3120 of this title’’ after ‘‘assistance’’;
and
(3) in paragraph (7), by inserting ‘‘, resulting
in substantial part from a service-connected disabil-
ity rated at 10 percent or more,’’ after ‘‘impair-
ment’’.
(b) BASIC ENTITLEMENT.—Section 3102 is amend-
ed—
(1) in paragraph (1)(A)(i), by striking out
‘‘which is’’ and all that follows through ‘‘chapter 11
of this title’’ and inserting in lieu thereof ‘‘rated at
20 percent or more’’;
(2) in paragraph (2)(A), by striking out ‘‘which
is’’ and all that follows through ‘‘chapter 11 of this
title’’ and inserting in lieu thereof ‘‘rated at 10 per-
cent’’; and
(3) by amending paragraph (2)(B) to read as
follows:
‘‘(B) is determined by the Secretary to be
in need of rehabilitation because of a serious
employment handicap.’’.
(c) PERIODS
OF ELIGIBILITY.—Section 3103 is
amended—
(1) in subsection (b)(3), by striking out ‘‘de-
scribed in section 3102(1)(A)(i) of this title’’ and in-
serting in lieu thereof ‘‘rated at 10 percent or
more’’;
(2) in subsection (c)—
(A) in the matter preceding paragraph (1),
by striking out ‘‘particular’’ and inserting in
lieu thereof ‘‘current’’; and
(B) in paragraph (2), by striking out ‘‘vet-
eran’s employment’’ and inserting in lieu there-
of ‘‘veteran’s current employment’’; and
(3) in subsection (d), by striking out ‘‘under
this chapter’’ and inserting in lieu thereof ‘‘in ac-
cordance with the provisions of section 3120 of this
title’’.
(d) SCOPE OF SERVICES AND ASSISTANCE.—Section
3104 is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking out ‘‘such veteran’s dis-
ability or disabilities cause’’ and inserting
in lieu thereof ‘‘the veteran has an employ-
ment handicap or’’; and
(ii) by inserting ‘‘reasonably’’ after
‘‘goal is’’;
(B) in paragraph (7)(A)—
(i) by striking out ‘‘(i)’’; and
(ii) by striking out ‘‘, and (ii)’’ and all
that follows through ‘‘such Act’’; and
(C) in paragraph (12), by striking out
‘‘For the most severely disabled veterans requir-
ing’’ and inserting in lieu thereof ‘‘For veterans
with the most severe service-connected disabil-
ities who require’’; and
(2) by striking out subsection (b) and redesig-
nating subsection (c) as subsection (b).
(e) DURATION OF REHABILITATION PROGRAMS.—
Paragraph (1) of section 3105(c) is amended by striking
out ‘‘veteran’s employment’’ and inserting in lieu thereof
‘‘veteran’s current employment’’.
(f) INITIAL AND EXTENDED EVALUATIONS; DETER-
MINATIONS REGARDING SERIOUS EMPLOYMENT HANDI-
CAP.—(1) Section 3106 is amended—
(A) in subsection (a), by striking out ‘‘described
in clause (i) or (ii) of section 3102(1)(A) of this
title’’ and inserting in lieu thereof ‘‘rated at 10 per-
cent or more’’;
(B) in subsection (b), by striking out ‘‘counsel-
ing in accordance with’’;
(C) in subsection (c), by striking out ‘‘with ex-
tended’’ and inserting in lieu thereof ‘‘with an ex-
tended’’; and
(D) by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively, and inserting
after subsection (c) the following new subsection:
‘‘(d) In any case in which the Secretary has deter-
mined 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 de-
termine whether the veteran is capable of participating in
a program of independent living services and assistance
under section 3120 of this title.’’.
(2) Chapter 31 is amended—
(A) in section 3107(c)(2), by striking out
‘‘3106(e)’’ and inserting in lieu thereof ‘‘3106(f)’’;
(B) in section 3109, by striking out ‘‘3106(d)’’
and inserting in lieu thereof ‘‘3106(e)’’;
(C) in section 3118(c), by striking out
‘‘3106(e)’’ and inserting in lieu thereof ‘‘3106(f)’’;
and
(D) in section 3120(b), by striking out
‘‘3106(d)’’ and inserting in lieu thereof ‘‘3106(d) or
(e)’’.
(g) ALLOWANCES.—Section 3108 is amended—
(1) in subsection (a)(2), by striking out ‘‘follow-
ing the conclusion of such pursuit’’ and inserting in
lieu thereof ‘‘while satisfactorily following a program
of employment services provided under section
3104(a)(5) of this title’’; and
(2) in subsection (f)(1)—
(A) in subparagraph (A)—
(i) by inserting ‘‘eligible for and’’
after ‘‘veteran is’’;
(ii) by striking out ‘‘chapter 30 or
34’’ and inserting in lieu thereof ‘‘chapter
30’’; and
(iii) by striking out ‘‘either chapter 30
or chapter 34’’ and inserting in lieu there-
of ‘‘chapter 30’’; and
(B) in subparagraph (B), by striking out
‘‘chapter 30 or 34’’ and inserting in lieu thereof
‘‘chapter 30’’.
(h) EMPLOYMENT ASSISTANCE.—Paragraph (1) of
section 3117(a) is amended by inserting ‘‘rated at 10 per-
cent or more’’ after ‘‘disability’’.
(i) PROGRAM OF INDEPENDENT LIVING SERVICES
AND ASSISTANCE.—Section 3120 is amended—
(1) in subsection (b), by striking out ‘‘service-
connected disability described in section 3102(1)(A)’’
and inserting in lieu thereof ‘‘serious employment
handicap resulting in substantial part from a serv-
ice-connected 
disability 
described 
in 
section
3102(1)(A)(i)’’; and
(2) in subsection (d), by striking out ‘‘and (b)’’.
(j) EFFECTIVE DATE.—(1) Except as provided in
paragraph (2), the amendments made by this section shall
take effect on the date of the enactment of this Act.
(2) The amendments made by subsection (a) (other
than paragraph (2)), subsection (d) (other than subpara-
graphs (A) and (B) of paragraph (1)), and subsection (i)
shall only apply with respect to claims of eligibility or enti-
tlement to services and assistance (including claims for ex-
tension of such services and assistance) under chapter 31
of title 38, United States Code, received by the Secretary
on or after the date of the enactment of this Act, including
those claims based on original applications, and applica-
tions seeking to reopen, revise, reconsider, or otherwise ad-
judicate or readjudicate on any basis claims for services
and assistance under such chapter.
SEC. 102. INCREASE IN BASIC MONTGOMERY GI BILL
RATES.
(a) IN GENERAL.—Section 3015 is amended—
(1) in subsection (a)(1), by striking out ‘‘$400’’
and inserting in lieu thereof ‘‘$421.62’’; and
(2) in subsection (b)(1), by striking out ‘‘$325’’
and inserting in lieu thereof ‘‘$343.51’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 1996.
SEC. 103. ENROLLMENT OF CERTAIN VEAP-ENROLLED IN-
DIVIDUALS IN MONTGOMERY GI BILL.
(a) IN GENERAL.—Subchapter II of chapter 30 is
amended by inserting after section 3018B the following
new section:
‘‘§ 3018C. Enrollment of certain VEAP-enrolled indi-
viduals
‘‘(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 enact-
ment 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 pe-
riods referred to in section 3202(1)(C)) on such
date;
‘‘(3) before applying for benefits under this sec-
tion, 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 stand-
ard 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 hon-
orable discharge; and
‘‘(5) before 180 days after the date of the en-
actment of the Veterans’ Education and Compensa-
tion Benefits Amendments of 1996, makes an irrev-
ocable election to receive benefits under this section
in lieu of benefits under chapter 32 of this title, pur-
suant 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 elec-
tion under subsection (a) to become entitled to basic edu-
cation assistance under this chapter—
‘‘(1) the basic pay of the individual shall be re-
duced (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 pro-
gram 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 De-
fense to the Post-Vietnam Era Veterans Education Ac-
count 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 sec-
tion 3015(f) of this title.
‘‘(d) The procedures provided in regulations referred
to in subsection (a) shall provide for notice of the require-
ments of subparagraphs (B), (C), and (D) of section
3011(a)(3) and of subparagraph (A) of section 3012 of
this title. Receipt of such notice shall be acknowledged in
writing.’’.
(b) CONFORMING AMENDMENTS.—(1) The table of
sections at the beginning of chapter 30 is amended by in-
serting after the item relating to section 3018B the follow-
ing new item:
‘‘3018C. Enrollment of certain VEAP-enrolled individuals.’’.
(2) Subsection (d) of section 3013 is amended by
striking out ‘‘or 3018B’’ and inserting in lieu thereof ‘‘,
3018B, or 3018C’’.
(3) Subsection (f) of section 3015 is amended by in-
serting ‘‘, 3018B, or 3018C’’ after ‘‘section 3018A’’.
(4) Paragraph (3) of section 3035(b) is amended by
striking out ‘‘or 3018B’’ in the matter preceding subpara-
graph (A) and inserting in lieu thereof ‘‘, 3018B, or
3018C’’.
(c) 
TRANSFER
OF
EDUCATIONAL
ASSISTANCE
FUNDS.—(1) Subparagraph (B) of section 3232(b)(2) is
amended—
(A) by striking out ‘‘, for the purposes of sec-
tion 1322(a) of title 31,’’; and
(B) by striking out ‘‘as provided in such sec-
tion’’ and inserting in lieu thereof ‘‘to the Secretary
for payments for entitlement earned under sub-
chapter II of chapter 30’’.
(2) Paragraph (1) of section 3035(b) of such title is
amended by inserting before the period at the end the fol-
lowing: ‘‘and from transfers from the Post-Vietnam Era
Veterans 
Education 
Account 
pursuant 
to 
section
3232(b)(2)(B) of this title’’.
(3) Subsection (a) of section 1322 of title 31, United
States Code, is amended by striking out ‘‘(82)’’ and in-
serting in lieu thereof ‘‘(81)’’.
SEC. 104. MONTGOMERY GI BILL ELIGIBILITY FOR CERTAIN
ACTIVE DUTY MEMBERS OF ARMY AND AIR
NATIONAL GUARD.
(a) IN GENERAL.—Paragraph (7) of section 3002 is
amended by striking out ‘‘November 29, 1989’’ and insert-
ing in lieu thereof ‘‘June 30, 1985’’.
(b) APPLICATION.—(1) An individual may only be-
come eligible for benefits under chapter 30 of title 38,
United States Code, as a result of the amendment made
by subsection (a) by making an election to become entitled
to basic educational assistance under such chapter. The
election may only be made within the nine-month period
beginning on the date of the enactment of this Act in the
manner required by the Secretary of Defense.
(2) REDUCTION IN PAY OR LUMP SUM DEPOSIT.—
In the case of any individual making an election under
paragraph (1), the Secretary of Defense shall collect and
deposit $1,200 from each such individual making an elec-
tion under paragraph (1) in the manner required by sec-
tion 3018(B)(b) of such title.
(3) TIME LIMITATION FOR USE OF ELIGIBILITY AND
ENTITLEMENT.—In the case of any individual making an
election under paragraph (1), the 10-year period referred
to in section 3031 of such title shall begin on the later
of—
(A) the date determined under such section
3031; or
(B) the date the election under paragraph (1)
of this subsection becomes effective.
SEC. 105. PERMANENT AUTHORITY FOR ALTERNATIVE
TEACHER CERTIFICATION PROGRAMS.
Subsection (c) of section 3452 is amended by striking
out ‘‘For the period ending on September 30, 1996, such’’
and inserting in lieu thereof ‘‘Such’’.
TITLE II—VETERANS’ BENEFITS
PROGRAMS
SEC. 201. EFFECTIVE DATE OF DISCONTINUANCE OF CER-
TAIN VETERANS’ BENEFITS BY REASON OF
DEATH OF RECIPIENT.
(a) DATE OF DISCONTINUANCE OF BENEFITS.—Sec-
tion 5112(b)(1) of title 38, United States Code, is amend-
ed to read as follows:
‘‘(1) by reason of—
‘‘(A) the marriage or remarriage of the
payee, shall be the last day of the month before
the month during which such marriage or re-
marriage occurs; and
‘‘(B) the death of the payee, shall be (i)
the last day of the month before the month dur-
ing which the death occurs, or (ii) in the case
of a payee who was in receipt of compensation
or pension and who has a surviving spouse who
is not entitled to have benefits computed under
section 5310 of this title for the month in which
the death occurs, the date on which the death
occurs;’’.
(b) PAYMENT OF BENEFIT FOR FINAL MONTH.—
Section 5112 of such title is further amended by adding
at the end the following new subsection:
‘‘(d) In the case of discontinuance of payment of com-
pensation 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 (notwith-
standing any other provision of law) be payable to the sur-
viving spouse.’’.
(c) COMMENCEMENT
DATE
FOR
DIC.—Section
5110(d) of such title is amended by adding at the end
the following new paragraph:
‘‘(3) Notwithstanding paragraph (1), the effective
date of an award of dependency and indemnity compensa-
tion 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 sec-
tion 5310 of this title for the month in which the death
occurs, be the day following the date on which the death
occurred.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to the death of com-
pensation and pension recipients occurring after October
1, 1997.
SEC. 202. INCREASE IN PERIOD FOR WHICH ACCRUED BEN-
EFITS PAYABLE.
Subsection (a) of section 5121 is amended by striking
out ‘‘one year’’ in the matter preceding paragraph (1) and
inserting in lieu thereof ‘‘two years’’.
SEC. 203. INCREASE IN AUTOMOBILE ALLOWANCE.
(a) IN GENERAL.—Subsection (a) of section 3902 is
amended by striking out ‘‘$5,500’’ and inserting in lieu
thereof ‘‘$6,500’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to purchases of
automobiles and other conveyances on or after the date
of the enactment of this Act.
SEC. 204. LEGAL ASSISTANCE FOR FINANCIALLY NEEDY
VETERANS IN CONNECTION WITH COURT OF
VETERANS APPEALS PROCEEDINGS.
(a) IN GENERAL.—Subchapter III of chapter 72 is
amended by adding at the end the following new section:
‘‘§ 7287. Legal assistance for financially needy veter-
ans 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 pro-
grams described in subsection (b).
‘‘(2) The Court shall seek to provide funds for such
purpose through a nonprofit organization selected by it.