An Act to amend title 38, United States Code, to increase the rates of compensation for disabled veterans, and for other purposes
PL 92-328 (S.3338), enacted 06/30/1972

86 STAT. ] 
PUBLIC LAW 92-328-JUNE 30, 1972 
393 
Public Law 92-328 
AN ACT 
June 30, 1972 
To amend title 38. United States Code, to increase the rates of compensation for 
[s. 3338] 
disabled veterans, and for other purposes. 
Be it enacted hy the Senate and Hou^e of Reiyreaentatices of the 
United States of America in Congress assembled. 
veterans» com-
^ 
'' 
' 
pensation and Re-
lief Act of 1972. 
SHORT TITLE 
SECTION 1. This Act may be cited as the "Veterans' Compensation 
andRelief Actof 1972". 
TITLE I—COMPENSATION AND OTHER BENEFITS 
SEC. 101. (a) Section 314 of title 38, United States Code, is 
84 stat. 787. 
amended— 
(1) by striking out "$25" in subsection (a) and inserting in lieu 
thereof "$28"; 
(2) by striking out "$46" in subsection (b) and inserting in lieu 
thereof "$51"; 
(3) by striking out "$70" in subsection (c) and inserting in lieu 
thereof "$77"; 
.
.
.
. 
''•-'-
(4) by striking out "$96" in subsection (d) and'inserting in 
lieu thereof "$106"; 
(5) by striking out "$135" in subsection (e) and inserting in 
lieu thereof';$149"; 
(6) by striking out "$163" in subsection (f) and inserting in 
lieu thereof';$179"; 
(7) by striking out "$193" in subsection (g) and inserting in 
lieu thereof "$212"; 
(8) by striking out "$223" in subsection (h) and inserting in 
lieu thereof "$245"; 
(9) by striking out "$250" in subsection (i) and inserting in 
lieu thereof "$275"; 
» 
(10) by striking out "$450" in subsection (j) and inserting in 
lieu thereof "$495"; 
(11) by striking out "$560" and "$784" in subsection (k) and 
" 
inserting in lieu thereof "$616" and "$862", respectively; 
(12) by striking out "$560" in subsection (1) and inserting in 
lieu thereof "$616"; 
(13) by striking out "$616" in subsection (m) and inserting in 
lieu thereof "$678"; 
(14) by striking out "$700" in subsection (n) and inserting in 
lieu thereof "$770"; 
(15) by striking out "$784" in subsections (o) and (p) and 
insertmg in lieu thereof "$862"; 
(16) by striking out "$336" in subsection (r) and inserting in 
lieu thereof "$370"; and 
(17) by striking out "$504" in subsection (s) and inserting in 
lieu thereof "$554". 
(b) The Administrator of Veterans' Affairs may adjust adminis- 
^^** adjust-
tratively, consistent with the increases authorized by this section, the '"^"** 
rates of disability compensation payable to persons within the pur-
view of section 10 of Public Law 85-857 who are not in receipt of 
^^ sta^ U63. 
compensation payable pursuant to chapter 11 of title 38, United States loi note. ^^'"'' 
Code. 
38 use 301. 
394 
PUBLIC LAW 92-328-JUNE 30, 1972 
[86 STAT. 
Dependents, 
additional com-
pensation. 
84 Stat. 788. 
72 Stat. 1117; 
84 Stat. 2 03. 
38 u s e 301-
361. 
Repeal. 
72 Stat. 1234. 
73 Stat. 435. 
Inc ompe te nt 
veterans, pay-
ments. 
73 Stat. 298, 
72 Stat. 1235; 
73 Stat. 298. 
SEC. 102. Section 315(1) of title 38, United States Code, is 
amended—• 
(1) by striking out "$28" in subparagraph (A) and inserting 
in lieu thereof "$31"; 
(2) by striking out "$48" in subparagraph (B) and inserting 
in lieu thereof "$53"; 
(3) by striking out "$61" in subparagraph (C) and inserting in 
lieu thereof "$67"; 
(4) by striking out "$75" and "$14" in subparagraph (D) and 
inserting in lieu thereof "$83" and "$15", respectively; 
(5) by striking out "$19" in subparagraph (E) and inserting 
in lieu thereof "$21"; 
(6) by striking out "$33" in subparagraph (F) and inserting 
in lieu thereof "$36"; 
(7) by striking out "$48" and "$14" in subparagraph (G) and 
inserting in lieu thereof "$53" and "$15", respectively; 
(8) by striking out "$23" in subparagraph (H) and inserting 
in lieu thereof "$25"; and 
(9) by striking out "$44" in subparagraph (I) and inserting 
in lieu thereof "$48". 
SEC. 103. (a) Chapter 11 of title 38, United States Code, is amended 
by adding at the end thereof the following new section: 
"§ 362. Clothing allowance 
"The Administrator under regulations which he shall prescribe, 
shall pay a clothing allowance of $150 per year to each veteran who 
because of disability which is compensable under the provisions of 
this chapter, wears or uses a, prosthetic or orthopedic appliance or 
appliances (including a wheelchair) which the Administrator deter-
mines tends to wear out or tear the clothing of such a veteran." 
(b) The analysis of such chapter 11 is amended by adding at the 
end thereof the f 
ollpwing: 
"362. Clothing allowance.". 
SEC. 104. (a) Subsection (a) of section 3203 of title 38, LTnited States 
Code, is repealed. 
(b) Subsection (d) of such section 3203 is redesignated as subsection 
(a) of such section 3203. 
(c) Paragraphs (1) and (2) of subsection (b) of such section 3203 
are redesignated as paragraph (1) and as so redesignated are amended 
to read as follows: 
"(b)(1) In any case in which a veteran having neither wife nor 
child is being furnished hospital treatment, institutional or domiciliary 
care without charge or otherwise by the United States, or any political 
subdivision thereof, is rated by the Veterans' Administration in 
accordance with regulations as being incompetent by reason of mental 
illness, and his estate from any source equals or exceeds $1,500, further 
payments of pension, compensation, or emergency officers' retirement 
pay shall not be made until the estate is reduced to $500. The amount 
which would be payable but for this paragraph shall be paid to the 
veteran in a lump sum; however, no payment of a lump sum herein 
authorized shall be made to the veteran until after the expiration of 
six months following a finding of competency and in the event of the 
veteran's death before payment of such lump sum no part thereof shall 
be payable." 
(d) Paragraphs (3) and (4) of svibsection (b) of such section 3203 
are redesignated as paragraphs (2) and (3), respectively; and the 
references in said redesignated paragraph (2) to "paragraph (2)" 
86 STAT. ] 
PUBLIC LAW 92-328-JUNE 30, 1972 
395 
and "Paragraph (2)" are changed to "paragraph (1)" and "Para-
graph (1)", respectively. 
(e) Subsection (c) of such section 3203 is amended by deleting 
"(a) or". 
(f) Subsection (e) of such section 3203 is amended by deleting 
", compensation, or retirement pay"; and as so amended is redesignated 
as subsection (d). 
(g) Subsection (f) of such section 3203 is redesignated as sub-
section (e). 
SEC. 105. (a) Subsection (d) of section 3202 of title 38, United 
States Code, is amended by adding at the end thereof the following 
new sentence: "No payment shall be made under the two preceding 
sentences of this subsection unless claim therefor is filed with the 
Veterans' Administration within five years after the death of the 
veteran, except that, if any person so entitled under said two sentences 
is under legal disability at the time of death of the veteran, such 
five-year period of limitation shall run from the termination or 
removal of the legal disability." 
(b) Section 3021(a) of title 38, United States Code, is amended by 
deleting "section 3203(a) (2) (A) of this title and". 
SEC. 106. All compensation or retirement pay which is being with-
held pursuant to the provisions of subsections (a) and (b) (1) of sec-
tion 3203, title 38, United States Code, in effect on the day before the 
effective date of this Act, shall be paid to the veteran, if competent, in 
a lump sum. If the veteran is incompetent, the withheld amounts shall 
be paid in a lump sum, or successive lump sums, subject to the $1,500 
and $500 limitations of subsection (b)(1) of such section 3203 as 
amended by this Act. If a competent veteran dies before payment is 
made the withheld amounts shall be paid according to the order of 
precedence, and subject to the time limitation, of subsection (a) (2) 
of such section 3203 in effect the day before the effective date of this 
Act. In the event of the death of an incompetent veteran before pay-
ment of all withheld amounts, no part of the remainder shall he 
payable. 
SEC. 107. Section 536 of title 38, United States Code, is amended 
by adding the following new subsection at the end thereof: 
"(d) (1) Any widow eligible for pension under this section shall, if 
she so elects, be paid pension at the rates prescribed by section 541 
of this title, and under the conditions (other than the service require-
ments) applicable to pension paid under that section to widows of 
veterans of World War I. If pension is paid pursuant to such an 
election, the election shall be irrevocable, except as provided in 
paragraph (2). 
"(2) The Administrator shall pay each month to the widow of each 
Spanish-American War veteran who is receiving, or entitled to receive, 
pension based on a need of regular aid and attendance, whichever 
amount is greater (A) that which is payable to her under subsections 
(a) and (b) of this section as increased by section 544 of this title; 
or (B) that which is payable under section 541 of this title, as increased 
by such section 544, to a widow of a World War I veteran with the 
same annual income and corpus of estate. Each change in the amount 
of pension required by this paragraph shall be effective as of the first 
day of the month during which the facts of the particular case war-
rant such change, and shall be made without specific application 
therefor." 
72 Stat. 1235. 
73 Stat. 435. 
78 Stat. 5 04. 
Filing for death 
benefit payments, 
exception. 
72 Stat. 1233; 
73 Stat. 297. 
72 Stat. 1228. 
Lump-sum com-
pensation; retire-
ment payments. 
Ante, 
p. 394. 
imtH 
;:X' 
Spanish-American 
War veterans, 
widows' pension,, 
72 Stat. 1138; 
81 Stat. 178, 179,, 
73 Stat. 434; 
85 Stat. 663, 664. 
81 Stat. 180; 
84 Stat. 1583. 
Effective date. 
gress 
396 
PUBLIC LAW 92-328-JUNE 30, 1972 
[86 STAT. 
7
2 Stat. 1123. 
gj,c. 108. (a) SectioH 334 of title 38, United States Code, is amended 
by striking out "equal" and all that follows down through the end 
thereof and inserting in lieu thereof "that specified in section 314 of 
this title." 
(b) Section 335 of such title is amended by striking out "equal" and 
all that follows down through the end thereof and inserting in lieu 
thereof "as provided in section 315 of this title." 
Repeal. 
(c) Scctiou 336 of such title is hereby repealed. 
(d) The table of sections at the beginning of subchapter IV of 
chapter 11 of title 38, United States Code, is amended by striking out 
the following: 
"336. Conditions under which wartime rates are payable." 
TITLE II—RELIEF FROM ADMINISTRATIVE ERROR, 
OVERPAYMENTS, AND FORFEITURE 
80 Stat. 1376. 
SEC. 201. Section 210(c) of title 38, United States Code, is amended 
by adding an additional subsection (3), reading as follows: 
"(3) (A) If the Administrator determines that any veteran, widow, 
child of a veteran, or other person, has suffered loss as a consequence 
of reliance upon a determination by the Veterans' Administration of 
eligibility or entitlement to benefits, without knowledge that it was 
erroneously made, he is authorized to provide such relief on account 
of such error as he determines equitable, including the payment of 
moneys to any person whom he determines equitably entitled thereto. 
Report to Con- 
"(B) The Administrator shall submit an annual report to the Con-
gress on January 1, 1973, and each succeeding year containing a brief 
summary, including a statement as to the disposition of each case 
recommended to him for equitable relief under this paragraph." 
7
2 Stat. 1230. 
Q^^ £02. (a) Section 3102 of title 38, United States Code, is amended 
to read as follows: 
"§ 3102. Waiver of recovery of claims by the United States 
"(a) There shall be no recovery of payments or overpayments of 
v 
any benefits under any of the laws administered by the Veterans' 
Administration whenever the Administrator determines that recovery 
w^ould be against equity and good conscience, if an application for 
relief is made within two years from the date of notification of the 
indebtedness by the Administrator to the payee. 
"(b) With respect to any loan guaranteed, insured, or made under 
38 use 1801. 
chapter 37 of this title, the Administrator may waive payment of an 
indebtedness to the Veterans' Administration by the veteran (as 
7
2 Stat. 1106. 
defined in sections 101 and 1801), or his spouse, following default and 
QA C4>nA 
^ etc 
' ' 
^ 
^^ 
loss of the property, where the Administrator determines that collec-
tion of such indebtedness would be against equity and good conscience. 
"(c) The Administrator may not exercise his authority Under sub-
section (a) or (b) of this section to waive recovery of any payment 
or the collection of any indebtedness if, in his opinion, there exists in 
connection with the claim for such waiver an indication of fraud, 
misrepresentation, material fault, or lack of good faith on the part of 
the person or persons having an interest in obtaining a waiver of such 
recovery or the collection of such indebtedness. 
"(d) No certifying or disbursing officer shall be liable for any 
amount paid to any person where the recovery of such amount is 
waived under subsection (a) or (b). 
" (e) Where the recovery of a payment oroverpayment made from 
the National Service Life Insurance Fund or United States Govern-
ment Life Insurance Fund is waived under this section, the fund from 
which the payment was made shall be reimbursed from the National 
84 Stat. 1576. 
86 STAT. ] 
PUBLIC LAW 92-328-JUNE 30, 1972 
397 
Service Life Insurance appropriation or the military and naval insur-
ance appropriation, as applicable." 
(b) The waiver authority provided by section 3102(a) of title 38, 
United States Code, as amended by subsection (a) of this section shall 
apply to improper payments, overpayments, and indebtedness estab-
lished by the Administrator prior to the effective date of this Act if 
application for relief was pending on the date of enactment of this Act, 
or such an application is made within two years from the date of 
enactment of this Act. 
SEC. 203. The analysis of chapter 53 of title 38, United States Code, 
is amended by striking therefrom "3102. Waiver of recovery of over-
payments." and insertmg in lieu thereof the following: 
"3102. Waiver of recovery of claims by the United States.". 
SEC. 204. Section 1817 of title 38, United States Code, is amended by 
inserting " ( a ) " immediately before "Whenever any veteran" and by 
adding a new subsection (b) as follows: 
"(b) If any veteran disposes of residential property securing a 
guaranteed, insured, or direct loan obtained by him under this chapter 
without receiving a release from liability with respect to such loan 
under subsection (a), and a default subsequently occurs which results 
in liability of the veteran to the Administrator on account of the loan, 
the Administrator may relieve the veteran of such liability if he 
determines, after such investigation as he deems appropriate, that the 
property was disposed of by the veteran in such a manner, and subject 
to such conditions, that the Administrator would have issued the 
veteran a release from liability under subsection (a) with respect to 
the loan if the veteran had made application therefor incident to 
such disposal. Failure of a transferee to assume by contract all of 
the liabilities of the original veteran-borrower shall bar such release 
of liability only in cases in which no acceptable transferee, either 
immediate or remote, is legally liable to the Administrator for the 
indebtedness of the original veteran-borrower arising from termina-
tion of the loan. The failure of a veteran to qualify for release from 
liability under this subsection does not preclude relief from being 
granted under subsection 3102(b) of this title, if eligible thereunder." 
SEC. 205. Section 1820(a)(4) of title 38, United States Code, is 
amended by striking out that part of the section beginning with "and 
the authority to waive" and ending with "a severe hardship upon the 
veteran;". 
SEC. 206. Subsection (d) of section 3503 of title 38, United States 
Code, is amended by inserting "(1)" after " ( d ) " and adding at the 
end thereof the following: 
" (2) The Administrator is hereby authorized and directed to review 
all cases in which, because of a false or fraudulent affidavit, declara-
tion, certificate, statement, voucher, or paper, a forfeiture of gratuitous 
benefits under laws administered by the Veterans' Administration was 
imposed, pursuant to this section or prior provisions of law, on or 
before September 1,1959. In any such case in which he determines that 
the forfeiture would not have been imposed under the provisions of 
this section in effect after September 1, 1959, he shall remit the for-
feiture, effective the date of enactment of this amendatory Act. Bene-
fits to which the individual concerned becomes eligible by virtue of 
any such remission may be awarded, upon application therefor, and 
the effective date of any award of compensation, dependency and 
indemnity compensation, or pension made in such a case shall be fixed 
in accordance with the provisions of section 3010(g) of this title." 
Ante, 
p. 3 96. 
72 Stat. 1212. 
Liability, re-
lease. 
77 Stat. 2 71. 
73 Stat. 452. 
Forfeiture of 
benefits, remis-
sion. 
76 Stat. 948. 
398 
PUBLIC LAW 92-329-JUNE 30, 1972 
[86 STAT. 
TITLE III—EFFECTIVE DATES 
SEC. 801. (a) Sections 101 through 107 of this Act shall take ettect 
on the first day of the second calendar month which begins after the 
date of enactment. 
(b) Section 108 shall take effect on July 1,1973. 
(c) Sections 201 through 206 of this Act shall take effect upon the 
date of eiiactment of this Act. 
Approved June 30, 1972. 
June 30, 1972 
[H. R. 15587] 
Public Law 92-329 
AN ACT 
To provide for a six-month extension of the emergency unemployment 
comi)ensation program. 
Emergency unem-
ployment compen-
sation program. 
Extension. 
85 Stat. 811. 
26 u s e 3304 
note. 
84 Stat. 713. 
26 u s e 3301. 
83 Stat. 91; 
84 Stat. 696. 
84 Stat. 716. 
42 u s e 1105. 
85 Stat. 814. 
42 u s e 1103. 
Be it enacted hy the Senate and House of Representatices 
of the 
• United States of America in Congress assemhlecL That section 202(f) 
of Public Law 92-224 (relating to termination dates for purposes of 
the Emergency Unemployment Compensation Act of 1971) 
is 
amended— 
(1) by striking out "June 30,1972'- and inserting in lieu thereof 
"Deoember 31,1972", 
(2) by striking out "September 30, 1972" and inserting in lieu 
thereof "March 31,1973", and 
(3) by striking out "July 1,1972" and inserting in lieu thereof 
"January 1,1973". 
SEC. 2. (a) Section 3301 of the Internal Revenue Code of 1954 
(relating to rate of Federal unemployment tax) is amended by adding 
at the end thereof the following new sentence: "In the case of wages 
paid during the calendar year 1973, the rate of such tax shall be 3.28 
percent in lieu of 3.2 percent." 
(b) Section 6157(b) of the Internal Revenue Code of 1954 (relat-
ing to payment of Federal unemployment tax on quarterly or other 
time period basis) is amended by adding at the end thereof the follow-
ing new sentence: "In the case of wages paid in any calendar quarter 
or other period during 1973, the amount of such wages shall be multi-
plied by 0.58 percent in lieu of 0.5 percent." 
(c) Section 905(b)(1) of the Social Security Act is amended by 
adding at the end thereof the following new sentence: "In the case 
of any month after March 1973 and before April 1974, the first sentence 
of this paragraph shall be applied by substituting 'thirteen fifty-
eighths' for 'one-tenth'." 
(d) Section 903(b)(3) of the Social Security Act is amended by 
adding at the end thereof the following new sentence: "No reduction 
shall be made under this subsection in the amount transferable to 
the account of any State by reason of emergency compensation paid 
to any individual for a week of unemployment ending after June 30, 
1972." 
(e) The second sentence of section 204(b) of the Emergency Liiem-
ployment Compensation Act of 1971 is amended to read as follows: 
"Amounts appropriated as repayable advances and paid to the States 
under section 203 shall be repaid, without interest (1) in the case of 
weeks of unemployment ending before July 1, 1972, as provided in 
section 903(b) (3) of the Social Security Act, and (2) in the case of 
weeks of unemployment ending after fTune 30, 1972, as provided in 
section 905(d) of such Act." 
Approved June 30, 1972.