To amend title 38, United States Code, to authorize the provision of funds in order to provide financial assistance by grant or contract to legal assistance entities for representation of financially needy veterans in connection with proceedings before the United States Court of Veterans Appeals.

SECTION 1. LEGAL ASSISTANCE FOR FINANCIALLY NEEDY VETERANS IN 
              CONNECTION WITH COURT OF VETERANS APPEALS PROCEEDINGS.

    (a) In General.--Subchapter III of chapter 72 of title 38, United 
States Code, is amended by adding at the end the following new section:
``Sec. 7287. Legal assistance for financially needy veterans in 
              proceedings before Court
    ``(a)(1) The Court of Veterans Appeals may provide funds in order 
to provide financial assistance by grant or contract to legal 
assistance entities for purposes of programs described in subsection 
(b).
    ``(2) The Court shall seek to provide funds for such purpose 
through a nonprofit organization selected by it. If the Court 
determines that there exists no nonprofit organization that would be an 
appropriate recipient of funds under this section for the purposes 
referred to in paragraph (1) and that it is consistent with the mission 
of the Court, the Court shall provide financial assistance, by grant or 
contract, directly to legal assistance entities for purposes of 
permitting such entities to carry out programs described in subsection 
(b).
    ``(b)(1) A program referred to in subsection (a) is any program 
under which a legal assistance entity uses financial assistance under 
this section to provide assistance or carry out activities (including 
assistance, services, or activities referred to in paragraph (3)) in 
order to ensure that individuals described in paragraph (2) receive, 
without charge, legal assistance in connection with decisions to which 
section 7252(a) of this title may apply or with other proceedings 
before the Court.
    ``(2) An individual referred to in paragraph (1) is any veteran or 
other person who--
            ``(A) is or seeks to be a party to an action before the 
        Court; and
            ``(B) cannot, as determined by the Court or the entity 
        concerned, afford the costs of legal advice and representation 
        in connection with that action.
    ``(3) Assistance, services, and activities under a program 
described in this subsection may include the following for individuals 
described in paragraph (2) in connection with proceedings before the 
Court:
            ``(A) Financial assistance to defray the expenses of legal 
        advice or representation (other than payment of attorney fees) 
        by attorneys, clinical law programs of law schools, and 
        veterans service organizations.
            ``(B) Case screening and referral services for purposes of 
        referring cases to pro bono attorneys and such programs and 
        organizations.
            ``(C) Education and training of attorneys and other legal 
        personnel who may appear before the Court by attorneys and such 
        programs and organizations.
            ``(D) Encouragement and facilitation of the pro bono 
        representation by attorneys and such programs and 
        organizations.
    ``(4) A legal assistance entity that receives financial assistance 
described in subsection (a) to carry out a program under this 
subsection shall make such contributions (including in-kind 
contributions) to the program as the nonprofit organization or the 
Court, as the case may be, shall specify when providing the assistance.
    ``(5) A legal assistance entity that receives financial assistance 
under subsection (a) to carry out a program described in this 
subsection may not require or request the payment of a charge or fee in 
connection with the program by or on behalf of any individual described 
in paragraph (2).
    ``(c)(1) There is authorized to be appropriated to the Court 
$750,000 for fiscal year 1998 and the same amount for each succeeding 
fiscal year through fiscal year 2001, increased by 3 percent per year, 
to carry out this section.
    ``(2) Funds appropriated under this subsection may be used only for 
the purposes of subsection (a). Such funds may be provided in advance 
or by way of reimbursement, to cover some or all of the administrative 
costs of the organization or entity receiving the funds in providing 
financial assistance to carry out programs described in subsection (b).
    ``(3) Funds shall be provided under this subsection pursuant to a 
written agreement entered into by the Court and the organization or 
entity receiving the funds from the Court.
    ``(d) A nonprofit organization may--
            ``(1) accept funds, in advance or by way of reimbursement, 
        from the Court under subsection (a) in order to provide the 
        financial assistance referred to in that subsection;
            ``(2) provide financial assistance by grant or contract to 
        legal assistance entities under this section for purposes of 
        permitting such entities to carry out programs described in 
        subsection (b);
            ``(3) administer any such grant or contract; and
            ``(4) accept funds, in advance or by way of reimbursement, 
        from the Court under subsection (c) in order to cover the 
        administrative costs referred to in that subsection.
    ``(e)(1) Not later than February 1 of each year, the Court shall 
submit to the Congress a report on the funds and financial assistance 
provided under this section during the preceding fiscal year. Based on 
the information provided the Court by entities receiving such funds and 
assistance, each report shall--
            ``(A) set forth the amount, if any, of funds provided to 
        nonprofit organizations under paragraph (2) of subsection (a) 
        during the fiscal year covered by the report;
            ``(B) set forth the amount, if any, of financial assistance 
        provided to legal assistance entities pursuant to paragraph (1) 
        of subsection (a) or under paragraph (2) of that subsection 
        during that fiscal year;
            ``(C) set forth the amount, if any, of funds provided to 
        nonprofit organizations under subsection (c) during that fiscal 
        year; and
            ``(D) describe the programs carried out under this section 
        during that fiscal year.
    ``(2) The Court may require that any nonprofit organization and any 
legal assistance entity to which funds or financial assistance are 
provided under this section provide the Court with such information on 
the programs carried out under this section as the Court determines 
necessary to prepare a report under this subsection.
    ``(f) For the purposes of this section:
            ``(1) The term `nonprofit organization' means any not-for-
        profit organization that is involved with the provision of 
        legal assistance to persons unable to afford such assistance.
            ``(2) The term `legal assistance entity' means a not-for-
        profit organization or veterans service organization capable of 
        providing legal assistance to persons with respect to matters 
        before the Court.
            ``(3) The term `veterans service organization' means an 
        organization referred to in section 5902(a)(1) of this title, 
        including an organization approved by the Secretary under that 
        section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7286 the following new item:

``7287. Legal assistance for financially needy veterans in proceedings 
                            before Court.''.

Summary: Authorizes the Court of Veterans Appeals to provide funds (where possible, through a nonprofit organization) for financial assistance to legal assistance entities to assist financially needy veterans in connection with proceedings before such Court. 
Permits legal assistance activities in connection with such proceedings to include:  (1) financial assistance to defray the expenses of legal advice or representation (other than payment of attorney's fees); (2) case screening and referral services; (3) education and training of attorneys and other legal personnel who may appear before the Court; and (4) encouragement and facilitation of pro bono representation by attorneys, clinical law programs of law schools, and veterans' service organizations. 
Sets forth provisions regarding:  (1) contributions by legal assistance entities receiving financial assistance; (2) a prohibition against such entities requiring or requesting the payment of a charge or fee in connection with the program; and (3) administrative and reporting requirements. 
Authorizes appropriations.