Veterans' Compensation, Education, and Employment Amendments of 1982
PL 97-306 (H.R.6782), enacted 10/14/1982

PUBLIC LAW 97-306—OCT. 14, 1982 
96 STAT. 1429 
Public Law 97-306 
97th Congress 
An Act 
To amend title 38, United States Code, to increase the rates of disability compensa-
tion for disabled veterans, to increase the rates of dependency and indemnity 
compensation for surviving spouses and children, and to modify and improve the 
educational assistance programs administered by the Veterans' Administration 
and the veterans' employment programs administered by the Department of Labor; 
and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SHORT TITLE; R E F E R E N C E S TO TITLE 38, UNITED STATES CODE 
SECTION 1. (a) This Act may be cited as the "Veterans' Compensa-
tion, Education, and Employment Amendments of 1982". 
G
t
)
) Except as otherwise specifically provided, whenever in this Act 
an amendment or repeal is expressed in terms of an amendment to 
or repeal of 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. 
Oct. 14, 1982 
[H.R. 6782] 
Veterans' 
Compensation, 
Education, and 
Employment 
Amendments of 
1982 
38 u s e 101 note. 
TITLE I—DISABILITY COMPENSATION AND DEPENDENCY 
AND INDEMNITY COMPENSATION 
PART A—RATE INCREASES 
DISABILITY C O M P E N S A T I O N 
SEC. 101. (a) Section 314 is amended— 
95 Stat. 1026. 
(1) by striking out "$58" in subsection (a) and inserting in lieu ^^ ^^^ ^^^• 
thereof "$62"; 
(2) by striking out "$107" in subsection 0^) and inserting in 
lieu thereof "$114"; 
(3) by striking out "$162" in subsection (c) and inserting in 
lieu thereof "$173"; 
(4) by striking out "$232" in subsection (d) and inserting in 
lieu thereof "$249"; 
(5) by striking out "$328" in subsection (e) and inserting in 
lieu thereof "$352"; 
(6) by striking out "$413" in subsection (f) and inserting in 
lieu thereof "$443"; 
(7) by striking out "$521" in subsection (g) and inserting in 
lieu thereof "$559"; 
(8) by striking out "$604" in subsection (h) and inserting in 
lieu thereof "$648"; 
(9) by striking out "$679" in subsection (i) and inserting in 
lieu thereof "$729"; 
(10) by striking out "$1,130" in subsection (j) and inserting in 
lieu thereof "$1,213"; 
96 STAT. 1430 
PUBLIC LAW 97-306—OCT. 14, 1982 
(11) by striking out "$1,403" and "$1,966" in subsection (k) 
and inserting in lieu thereof "$1,506" and "$2,111", respec-
tively; 
(12) by striking out "$1,403" in subsection (1) and inserting in 
lieu thereof "$1,506"; 
(13) by striking out "$1,547" in subsection (m) and inserting in 
lieu thereof "$1,661"; 
(14) by striking out "$1,758" in subsection (n) and inserting in 
lieu thereof "$1,888"; 
(15) by striking out "$1,966" each place it appears in subsec-
tions (o) and (p) and inserting in lieu thereof "$2,111"; 
(16) by striking out "$844" and "$1,257" in subsection (r) and 
inserting in lieu thereof "$906" and "$1,350", respectively; 
(17) by striking out "$1,264" in subsection (s) and inserting in 
lieu thereof "$1,357"; and 
(18) by striking out "$244" in subsection (t) and inserting in 
lieu thereof "$262". 
38 use 3
1
4 note. 
(b) The Administrator of Veterans* Affairs may adjust administra-
tively, consistent with the increases authorized by this section, the 
rates of disability compensation payable to persons within the pur-
38 use note 
yiew of section 10 of Public Law 85-857 who are not in receipt of 
prec. 101. 
compensation payable pursuant to chapter 11 of title 38, United 
38 use 301 et 
States C^de. Any such adjustment shall be made in conformance 
*
^
^
- 
with the methodology used in determining the amounts of the 
increases under subsection (a) and specifically shall include the 
rounding down to the nearest dollar of each rate as so adjusted. 
ADDITIONAL COMPENSATION FOR DEPENDENTS 
Q
« f^in J?f 
SEC. 102. Section 315(1) is amended— 
38 u be 315. 
(J) ^jy striking out clauses (A) through (G) and inserting in lieu 
thereof the following: 
"(A) has a spouse but no child, $74; 
"(B) has a spouse and one or more children, $124 plus $40 
for each child in excess of one; 
"(C) has no spouse but one or more children, $50 plus $40 
for each child in excess of one;"; 
(2) by redesignating clauses (H), (I), and (J) as clauses (D), (E), 
and (F), respectively; 
(3) by striking out "$56" in clause (D) (as redesignated by 
clause (2) of this section) and inserting in lieu thereof "$60 ; 
(4) by striking out "$125" in clause (E) (as redesignated by 
clause (2) of this section) and inserting in lieu thereof "$134 ; 
and 
(5) by striking out "$105" in clause (F) (as redesignated by 
clause (2) of this section) and inserting in lieu thereof "$112 . 
CLOTHING ALLOWANCE FOR CERTAIN DISABLED VETERANS 
95 Stat. 1027. 
SEC. 103. Sectiou 362 is amended by striking out "$305" and 
38 use 362. 
inserting in lieu thereof "$327". 
DEPENDENCY AND INDEMNITY COMPENSATION FOR SURVIVING SPOUSES 
95 Stat. 1028. 
SEC. 104. (a) Subscction (a) of section 411 is amended to read as 
38 use 411. 
fouo^g. 
PUBLIC LAW 97-306—OCT. 14, 1982 
96 STAT. 1431 
"(a) Dependency and indemnity compensation shall be paid to a 
surviving spouse, based on the pay grade of the person upon whose 
death entitlement is predicated, at monthly rates set forth in the 
following table: 
Monthly 
Monthly 
"Pay grade 
rate 
Pay grade 
rate 
E-1 
$445 
W-4 
$639 
E-2 
459 
0-1 
563 
E-3 
470 
0-2 
582 
E-4 
500 
0-3 
622 
E-5 
514 
0-4 
658 
E-6 
526 
0-5 
726 
E-7 
552 
0-6 
817 
E-8 
582 
0-7 
884 
E-9 
»608 
0-8 
969 
W-1 
563 
0-9 
1,041 
W-2 
586 
O-IO 
21,139 
W-3 
603 
"'If the veteran served as sergeant mtgor of the Army, senior enlisted advisor of the Navy, 
chief master sergeant of the Air Force, sergeant m ^ r of the Marine Corps, or master chief 
petty officer of the Coaet Guard, at the appuc«d)le time designated by section 402 of this title, 
the surviving spouse's rate shall be $655. 
"^If the veteran served as Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, 
Chief of Naval Operations, Chief of Staff of the Air Force, or Commandant of the Marine Corps, 
at the applicable time designated by section 402 of this title, the surviving spouse's rate shall oe 
$1,222." 
(b) Subsection (b) of such section is amended by striking out "$48" 
and inserting in lieu thereof "$51". 
(c) Subsection (c) of such section is amended by striking out "$125" 
and inserting in lieu thereof "$134". 
(d) Subsection (d) of such section is amended by striking out "$62" 
and inserting in lieu thereof "$66". 
DEPENDENCY AND INDEMNITY COMPENSATION FOR CHILDREN 
SEC. 105. Section 413 is amended— 
95 stat. 1029. 
(1) by striking out "$210" in clause (1) and inserting in lieu ^^ "^^ ^^^ 
thereof "$225"; 
(2) by striking out "$301" in clause (2) and inserting in lieu 
thereof "$323"; 
(3) by striking out "$389" in clause (3) and inserting in lieu 
thereof "$417"; and 
(4) by striking out "$389" and "$79" in clause (4) and inserting 
in lieu thereof ^$417" and "$84", respectively. 
SUPPLEMENTAL DEPENDENCY AND INDEMNITY COMPENSATION FOR 
CHILDREN 
SEC. 106. Section 414 is amended— 
95 stat. 1029. 
(1) by striking out "$125" in subsection (a) and inserting in ^^ ^sc 4i4. 
lieu thereof "$134"; 
(2) by striking out "$210" in subsection (b) and inserting in 
lieu thereof "$225"; and 
(3) by striking out "$107" in subsection (c) and inserting in 
lieu thereof "$114". 
REPEAL OF EARLIER RATE ADJUSTMENT 
SEC. 107. Section 405 of the Omnibus Budget Reconciliation Act of 
1982 (Public Law 97-253) is repealed. 
Ante, p. 803. 
96 STAT. 1432 
PUBLIC LAW 97-306—OCT. 14, 1982 
38 use 314 note. 
SEC. 108. The amendments made by this part shall take effect on 
October 1,1982. 
PART B—PROGRAM IMPROVEMENTS 
38 u s e 314. 
Effective 
date. 
38 u s e 314 note. 
38 u s e 410. 
Effective date. 
38 u s e 410 note. 
38 u s e 401 et 
seq. 
COMPENSATION RATE INCREASES FOR CERTAIN BLINDED VETERANS 
SEC. 111. (a) Section 314(n) is amended by inserting "or has 
suffered blindness without light perception in both eyes," after 
"anatomical loss of both eyes,". 
(b) Section 314(p) is amended by inserting "or service-connected 
anatomical loss or loss of use of one hand or one foot" after "in one 
ear". 
(c) The amendments made by subsections (a) and O
t
>
) shall take 
effect on October 1,1982. 
CORRECTION OF TECHNICAL ERROR WITH RESPECT TO ENTITLEMENT TO 
CERTAIN SURVIVORS' BENEFITS 
SEC. 112. (a) Section 4100t))(l) is amended by inserting "or entitled 
to receive" after "was in receipt of. 
Ot))(l) The amendment made by subsection (a) shall take effect on 
October 1,1982. 
(2)(A) As soon as practicable after September 30,1982, the Admin-
istrator of Veterans' Affairs shall pay an amount determined under 
subparagraph (B) to each person who would have been entitled to a 
payment under chapter 13 of title 38, United States Code, for any 
part of the period beginning on October 1, 1978, and ending on 
September 30, 1982, if the amendment made by subsection (a) had 
taken effect on October 1,1978. 
(B) The amount of any payment to a person under subparagraph 
(A) is the amount equal to the total of all payments under chapter 13 
of title 38, United States Code, that would have been made to that 
person for the period described in such subparagraph if the amend-
ment made by subsection (a) had taken effect on October 1, 1978. 
38 u s e 101. 
10 u s e 2101 et 
seq. 
Repeal. 
38 u s e 403. 
5 u s e 8140 note. 
5 u s e 8101. 
ELIGIBILITY FOR VETERANS 
ADMINISTRATION BENEFITS OF SENIOR 
RESERVE OFFICERS' TRAINING CORPS PARTICIPANTS DISABLED DURING 
CERTAIN TRAINING 
SEC. 113. (a) Section 101(22) is amended— 
(1) by striking out "and" at the end of clause (C); 
(2) by redesignating clause (D) as clause (E); and 
(3) by inserting after clause (C) the following new clause (D): 
"(D) duty performed by a member of a Senior Reserve Officers' 
Training Corps program when ordered to such duty for the 
purpose of field training or a practice cruise under chapter 103 
of title 10; and". 
(b)(1) Section 403 is repealed. 
(2) The table of sections at the beginning of chapter 13 is amended 
by striking out the item relating to such section. 
(c) Notwithstanding section 8140 of title 5, United States Code, 
subchapter I of chapter 81 of such title does not apply in the case of 
a disability suffered by a member of the Reserve Officers' Training 
Corps of the Army, Navy, or Air Force that is compensable under 
PUBLIC LAW 97-306—OCT. 14, 1982 
96 STAT. 1433 
chapter 11 of title 38, United States Code, or a death suffered by 
such a member for which dependency and indemnity compensation 
is payable under chapter 13 of such title. 
(d) The amendments made by subsections (a) and (b) and the 
provisions of subsection (c) shall apply only with respect to deaths 
and disabilities resulting from diseases or injuries incurred or aggra-
vated after September 30,1982. 
TITLE II—EDUCATIONAL ASSISTANCE 
VETERANS' COUNSEUNG AND OUTREACH SERVICES 
SEC. 201. (a) Section 243 is amended to read as follows: 
"§ 243. Outstationing of counseling and outreach personnel 
"The Administrator may station employees of the Veterans* 
Administration at locations other than Veterans' Administration 
offices, including educational institutions, to provide counseling and 
other assistance regarding benefits under this title to veterans and 
other persons eligible for benefits under this title and to provide 
outreach services under this subchapter.". 
(b) The item relating to such section in the table of sections at the 
beginning of chapter 3 is amended to read as follows: 
"243. Outstationing of counseling and outreach personnel.". 
38 use 301 et 
seq. 
38 use 401 et 
seq. 
Effective date. 
38 use 101 note. 
38 use 243. 
REPEAL OF 50-PERCENT EMPLOYMENT RULE FOR VOCATIONAL SCHOOLS 
SEC. 202. (a) Section 1673(a) is amended— 
(1) by striking out "(1)" before "The"; 
(2) by redesignating clause (A) as clause (1); 
(3) by striking out clause (B) and inserting in lieu thereof the 
following: 
"(2) any sales or sales management course which does not 
provide specialized training within a specific vocational field;"; 
(4) by redesignating clauses (C) and (D) as clauses (3) and (4), 
respectively; and 
(5) by striking out paragraph (2). 
0)) Section 1723(a) is amended— 
(1) by striking out "(1)" before "The"; 
(2) by redesignating clause (A) as clause (1); 
(3) by striking out clause (B) and inserting in lieu thereof the 
following: 
"(2) any sales or sales management course which does not 
provide specialized training within a specific vocational field;"; 
(4) by redesignating clauses (C) and (D) as clauses (3) and (4), 
respectively; and 
(5) by striking out paragraph (2). 
(c) The amendments made by this section shall take effect on 
October 1,1982. 
TECHNICAL AMENDMENT RELATING TO 85-15 RULE 
SEC. 203. (a) Section 1673(d) is amended— 
(1) by striking out "The Administrator" in the first sentence 
and inserting in lieu thereof "(1) Except as provided in para-
graph (2) of this subsection, the Administrator ; 
38 use 1673. 
38 use 1723. 
Effective date. 
38 use 1673 
note. 
38 use 1673. 
96 STAT. 1434 
PUBLIC LAW 97-306—OCT. 14, 1982 
(2) by striking out "(other than" and all that follows through 
"ofthis title)"; and 
(3) by adding at the end the following new paragraph: 
"(2) Paragraph (1) of this subsection— 
"(A) does not (except as provided in section 1691(c) of this title) 
apply with respect to the enrollment of a veteran in a course 
offered pursuant to subchapter V of this chapter; 
"(B) does not apply with respect to the enrollment of a veteran 
in a farm cooperative training course; and 
"(C) does not apply with respect to the enrollment of a veteran 
in a course described in section 1789(b)(6) of this title.". 
38 use 1691. 
(b) Section 1691(c) is amended by striking out "section 1673(d)" 
and inserting in lieu thereof "section 1673(d)(1)". 
CHARGE TO ENTITLEMENT FOR PURSUIT OF INDEPENDENT STUDY 
PROGRAMS 
38 use 1682. 
SEC. 204. Section 1682 is amended— 
(1) by striking out "or (c)" in subsection (a)(1) and inserting in 
lieu thereof "(c), or (g)"; and 
(2) by striking out "entitlement shall be charged at one-half of 
the full-time institutional rate" in subsection (e) and inserting 
in lieu thereof "the amount of such veteran's entitlement to 
educational assistance under this chapter shall be charged in 
accordance with the rate at which the veteran is pursuing the 
independent study program but at not more than the rate at 
which such entitlement is charged for pursuit of such program 
on less than a half-time basis". 
MODIFICATION OF RESTRICTION ON ALLOWANCES FOR INCARCERATED 
PERSONS 
38 use 1508. 
SEC. 205. (a) Section 1508(g)(2) is amended— 
(1) by inserting "not" after "shall"; and 
(2) by striking out all after "felony" and inserting in lieu 
thereof a period. 
38 use 1682. 
(b) Section 1682(g) is amended— 
(1) by adding at the end of paragraph (1) the following new 
sentence: "The amount of the educational assistance allowance 
payable to a veteran while so incarcerated shall be reduced to 
the extent that the tuition and fees of the veteran for any 
course are paid under any Federal program (other than a 
program administered by the Administrator) or under any State 
or local program."; and 
(2) in paragraph (2)— 
(A) by inserting "not" after "shall"; and 
(B) by striking out all after "felony" and inserting in lieu 
thereof a period. 
38 use 1780. 
(c) Section 1780(a) is amended— 
(1) by striking out "section 1504" and inserting in lieu thereof 
"section 1508"; 
(2) by inserting "or" at the end of clause (4); 
(3) by striking out the semicolon and "or" at the end of clause 
(5) and inserting in lieu thereof a period; and 
(4) by striking out clause (6). 
PUBLIC LAW 97-306—OCT. 14, 1982 
96 STAT. 1435 
CLARIFICATION OF TARGETED DELIMITING DATE EXTENSION AUTHORITY 
SEC. 206. (a) Section 1662(a)(3) is amended— 
(1) in the first sentence of subparagraph (C)(i)— 
(A) by striking out "may" and inserting in Heu thereof 
"shall"; and 
(B) by striking out "only i f and all that follows in such 
sentence and inserting in lieu thereof "unless the Adminis-
trator determines, based on an examination of the veteran's 
employment and training history, that the veteran is not in 
need of such a program or course in order to obtain a 
reasonably stable employment situation consistent with the 
veteran's abilities and aptitudes."; and 
(2) by striking out "December 31, 1983" in subparagraph (D) 
and inserting in lieu thereof "December 31,1984". 
(b)(1) Not later than 30 days after the date of the enactment of this 
Act, the Administrator of Veterans' Affairs shall publish in the 
Federal Register, for public review and comment for a period not to 
exceed 30 days, proposed regulations under section 1662(a)(3)(C)(i) of 
title 38, United States Code, as amended by subsection (a). 
(2) Not later than 90 days after the date of the enactment of this 
Act, the Administrator shall publish in the Federal Register final 
regulations under such section 1662(a)(3)(C)(i). 
(c) The amendments made by subsection (a) shall take effect as of 
January 1,1982. 
95 Stat. 1054. 
38 u s e 1662. 
Publication in 
Federal 
Register. 
38 u s e 1662 
note. 
Publication in 
Federal 
Register. 
Effective date. 
38 u s e 1662 
note. 
AUTHORITY TO SUSPEND EDUCATIONAL ASSISTANCE IN CERTAIN CASES 
SEC. 207. Section 1790(b) is amended— 
(1) by striking out "Any" in paragraph (2) and inserting in 
lieu thereof "Except as provided in paragraph (3) of this subsec-
tion, any"; and 
(2) by adding at the end the following new paragraph: 
"(3)(A) The Administrator may suspend educational assistance to 
eligible veterans and eligible persons already enrolled, and may 
disapprove the enrollment or reenrollment of any eligible veteran or 
eligible person, in any course as to which the Administrator has 
evidence showing a substantial pattern of eligible veterans or eli-
gible persons, or both, who are receiving such assistance by virtue of 
their enrollment in such course but who are not entitled to such 
assistance because (i) the course approval requirements of this 
chapter are not being met, or (ii) the educational institution offering 
such course has violated one or more of the recordkeeping or 
reporting requirements of this chapter or chapter 32, 34, or 35 of this 
title. 
"(B)(i) Action may be taken under subparagraph (A) of this para-
graph only after— 
"(I) the Administrator provides to the State approving agency 
concerned and the educational institution concerned written 
notice of any such failure to meet such approval requirements 
and any such violation of such recordkeeping or reporting 
requirements; 
"(II) such institution refuses to take corrective action or does 
not within 60 days after such notice (or within such longer 
period as the Administrator determines is reasonable and 
appropriate) take corrective action; and 
38 u s e 1790. 
38 u s e 1601 et 
seq, 1651 et seq., 
1700 et seq. 
96 STAT. 1436 
PUBLIC LAW 97-306—OCT. 14, 1982 
"(HI) the Administrator, not less than 30 days before taking 
action under such subparagraph, provides to each eligible vet-
eran and eligible person already enrolled in such course written 
notice of the Administrator's intent to take such action {and the 
reasons therefor) unless such corrective action is taken within 
such 60 days (or within such longer period as the Administrator 
has determined is reasonable and appropriate), and of the date 
on which the Administrator intends to take action under such 
subparagraph.". 
MODIFICATION OP REPORTING REQUIREMENT ON DEFAULT RATES UNDER 
EDUCATIONAL LOAN PROGRAM 
38 use 1798. 
SEC. 208. The second sentence of section 1798(e)(3) is amended— 
(1) by striking out "in maximum feasible detail"; 
(2) by inserting "and" at the end of clause (A); and 
(3) by striking out clauses (B) and (C) and inserting in lieu 
thereof the following: 
"(B) data regarding the default experience and default rate 
with respect to (i) loans made under this section in connection 
with accelerated payments under section 1682A of this title, and 
(ii) other loans made under this section.". 
ADMINISTRATIVE IMPLEMENTATION OF CERTAIN DEPARTMENT OP 
DEFENSE EDUCATIONAL ASSISTANCE PROGRAMS 
38 use 1622. 
SEC. 209. Section 1622 is amended by adding at the end the 
following new subsection: 
"(e) Any amount transferred to the Administrator from the Secre-
tary of a military department under an interagency agreement for 
the administration by the Veterans* Administration of an educa-
tional assistance program established by the Secretary under chap-
1
0 use 2141 et 
ter 107 of title 10 may be deposited into and disbursed from the fund 
*
^
^
- 
for the purposes of such program.". 
ADJUSTMENT OF COMPUTATION OF BENEFIT PAYMENT RATE FOR PAR-
TICIPANTS MAKING LUMP-SUM CONTRIBUTIONS UNDER CHAPTER 32 
PROGRAM 
SEC. 210. Section 1622(d) is amended by striking out "$75" and 
inserting in lieu thereof "$100". 
TITLE in—EMPLOYMENT ASSISTANCE 
CONGRESSIONAL FINDINGS 
SEC. 301. (a) Chapter 41 is amended by inserting after the table of 
sections the following new section: 
38 use 2000. 
«
«
§ 2000. Findings 
"The Congress makes the following findings: 
"(1) As long as unemployment and underemployment con-
tinue as serious problems among disabled veterans and Vietnam-
era veterans, Eilleviating unemplo3mient and underemployment 
among such veterans is a national responsibility. 
"(2) Because of the special nature of emplo3mient and training 
needs of such veterans and the national responsibility to meet 
PUBLIC LAW 97-306—OCT. 14, 1982 
96 STAT. 1437 
those needs, policies and programs to increase opportunities for 
such veterans to obtain employment, job training, counseling, 
and job placement services and assistance in securing advance-
ment in employment should be effectively and vigorously imple-
mented by the Secretary of Labor and such implementation 
should be accomplished through the Assistant Secretary of 
Labor for Veterans' Employment.". 
(bXD The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 2001 the 
following new item: 
"2000. Findings.". 
(2) The item relating to chapter 41 in the table of chapters 
preceding part I and in the table of chapters at the beginning of part 
III is amended by striking out "2001" and inserting in lieu thereof 
"2000". 
PURPOSE OF JOBS TRAINING PROGRAMS 
SEC. 302. Section 2002 is amended— 
38 use 2002. 
(1) by inserting "and regulations" after "to this end policies"; 
and 
(2) by inserting a comma and "with priority given to the needs 
of disabled veterans and veterans of the Vietnam era" after 
"opportunities". 
JURISDICTION OF ASSISTANT SECRETARY OF LABOR FOR VETERANS* 
EMPLOYMENT 
SEC. 303. Section 2002A is amended by adding at the end the 38 use 2002A. 
following new sentence: "The employees of the Department of Labor 
administering chapter 43 of this title shall be administratively and 38 use 2021 et 
functionally responsible to the Assistant Secretary of Labor for *
^
^
-
Veterans' Employment.". 
STATE AND ASSISTANT STATE DIRECTORS FOR VETERANS' EMPLOYMENT 
SEC. 304. (aXD Section 2003 is amended by striking out the section 38 use 2003. 
heading and all of the matter preceding clause (1) and inserting in 
lieu thereof the following: 
"§ 2003. State and Assistant State Directors for Veterans' Employ-
ment 
"(a) The Secretary of Labor shall assign to each State a repre-
sentative of the Veterans' Employment Service to serve as the State 
Director for Veterans' Employment, and shall assign full-time Fed-
eral clerical support to each such Director. The Secretary shall also 
assign to each State one Assistant State Director for Veterans' 
Emplojnnent per each 250,000 veterans and eligible persons of the 
State veterans population and such additional Assistant State Direc-
tors for Veterans' Emplo5anent as the Secretary shall determine, 
based on the data collected pursuant to section 2007 of this title, to 
be necessary to assist the State Director for Veterans' Employment 
to carry out effectively in that State the purposes of this chapter. 
Full-time Federal clerical support personnel assigned to State Direc-
tors for Veterans' Employment shall be appointed in accord£uice 
with the provisions of title 5 governing appointments in the competi-
96 STAT. 1438 
PUBLIC LAW 97-306—OCT. 14, 1982 
tive service and shall be paid in accordance with the provisions of 
5 use 5101 et 
chapter 51 and subchapter III of chapter 53 of title 5. 
seq., 5331. 
''Q^^Y) Each State Director for Veterans' Employment and Assist-
ant State Director for Veterans' Employment (A) shall be an eligible 
veteran who at the time of appointment has been a bona fide 
resident of the State for at least two years, and (B) shall be 
appointed in accordance with the provisions of title 5 governing 
appointments in the competitive service and shall be paid in accord-
ance with the provisions of chapter 51 and subchapter III of chapter 
53 of title 5. 
"(2) Each State Director for Veterans' Employment and Assistant 
State Director for Veterans' Emplojnnent shall be attached to the 
public emplojmient service system of the State to which they are 
assigned. They shall be administratively responsible to the Secre-
tary of Labor for the execution of the veterans' and eligible persons' 
counseling and placement policies of the Secretary through the 
public employment service system and in cooperation with other 
employment and training programs administered by the Secretary, 
by grantees of Federal or federally funded emplojnnent and training 
programs in the State, or directly by the State. 
"(c) In cooperation with the staff of the public emplo5ntnent service 
system and the staffs of each such other program in the State, the 
State Director for Veterans' Employment and Assistant State Direc-
tors for Veterans' Employment shall—". 
(2) The item relating to such section in the table of sections at the 
beginning of chapter 41 is amended to read as follows: 
"2003. State and Assistant State Directors for Veterans' Employment.". 
(b) Clause (6) of such section is amended to read as follows: 
"(6) promote and facilitate the participation of veterans in 
Federal and federally funded emplo5maent and training pro-
grams and directly monitor the implementation and operation 
of such programs to ensure that eligible veterans, veterans of 
the Vietnam era, disabled veterans, and eligible persons receive 
such priority or other special consideration in the provision of 
services as is required by law or regulation;". 
(c) Such section is further amended by striking out the period at 
the end of clause (7) and inserting in lieu thereof a semicolon and by 
adding at the end the following new clauses: 
"(8) supervise the listing of jobs and subsequent referrals of 
qualified veterans as required by section 2012 of this title; 
"(9) be responsible for ensuring that complaints of discrimina-
tion filed under such section are resolved in a timely fashion; 
"(10) working closely with appropriate Veterans' Administra-
tion personnel engaged in providing counseling or rehabilitation 
38 use 1
5
0
0 et 
services under chapter 31 of this title, cooperate with employers 
*^9- 
to identify disabled veterans who have completed or are partici-
pating in a vocational rehabilitation training program under 
such chapter and who are in need of employment; 
"(11) cooperate with the staff of programs operated under 
section 612A of this title in identifying and assisting veterans 
who have readjustment problems and who may need employ-
ment placement assistance or vocational training assistance; 
and 
"(12) when requested by a Federal or State agency or a 
private employer, assist such agency or employer in identifying 
PUBLIC LAW 97-306—OCT. 14, 1982 
96 STAT. 1439 
and acquiring prosthetic and sensory aids and devices which 
tend to enhance the employability of disabled veterans.". 
DISABLED VETERANS OUTREACH PROGRAM 
SEC. 305. (a) Subsection (a) of section 2003A is amended— 
38 use 2003A. 
(1) by inserting a comma and "acting through the Assistant 
Secretary for Veterans' Employment," in paragraph (1) after 
"Secretary of Labor"; 
(2) by inserting a comma and "acting through the Assistant 
Secretary of Labor for Veterans' Emplo3mient," in paragraph (3) 
after "Secretary"; 
(3) by striking out "available to" in paragraphs (1) and (3) and 
inserting in lieu thereof "available for use in"; 
(4) by striking out "provided to" in paragraph (2) and insert-
ing in lieu thereof "provided for use in"; and 
(5) by adding at the end the following new paragraph: 
"(5) The distribution and use of funds provided for use in States 
under this section shall be subject to the continuing supervision and 
monitoring of the Assistant Secretary for Veterans' Employment 
and shall not be governed by the provisions of any other law, or any 
regulations prescribed thereunder, that are inconsistent with this 
section.". 
O
t
)
) Subsection 0^X2) of such section is amended— 
(1) by inserting after the first sentence the following new Waiver. 
sentence: "The Secretary, after consulting the Administrator 
and the State Director for Veterans' Employment assigned to a 
State under section 2003 of this title, may waive the limitation Ante, p. 1437. 
in the preceding sentence for that State so long as the percent-
age of all disabled veterans' outreach program specialists that 
are stationed at local emplo3mient service offices in all States 
does not exceed 80 percent."; and 
(2) by striking out "section 621A" and inserting in lieu thereof 
"section 612A". 
(c) Subsection (c) of such section is amended— 
(1) by striking out "prime sponsors under the Comprehensive 
Employment and Training Act" in clause (4) and inserting in 
lieu thereof "appropriate grantees under other Federal and 
federally funded employment and training programs"; and 
(2) by adding at the end the following new clause: 
"(8) Development of outreach programs in cooperation with 
appropriate Veterans' Administration personnel engaged in 
providing counseling or rehabilitation services under chapter 31 
of this title, with educational institutions, and with employers 
in order to ensure maximum assistance to disabled veterans 
who have completed or are participating in a vocational reha-
bilitation program under such chapter.". 
(d) Section 2003A is further amended— 
(1) by striking out subsection (d); and 
(2) by redesignating subsection (e) as subsection (d) and adding 
at the end the following new sentence: "The Secretary shall 
monitor the appointment of disabled veterans' outreach pro-
gram specialists to ensure compliance with the provisions of 
subsection (a)(2) of this section with respect to the employment 
of such specialists,". 
38 u s e 1500 et 
seq. 
96 STAT. 1440 
PUBLIC LAW 97-306—OCT. 14, 1982 
ESTIMATES OF FUNDS FOR ADMINISTRATION 
38 use 2006. 
SEC. 306. (a) Subsection (a) of section 2006 is amended— 
(1) by inserting "and chapters 42 and 43 of this title" after "of 
this chapter" in the first sentence; and 
(2) by adding at the end the following new sentences: "Funds 
estimated pursuant to the first sentence of this subsection shall 
include amounts necessary to fund the disabled veterans' out-
reach program under section 2003A of this title and shall be 
approved by the Secretary of Labor only if the level of funding 
proposed is in compliance with such section. Each budget sub-
mission with respect to such funds shall include a separate 
listing of the proposed number, by State, for disabled veterans 
outreach program specialists appointed under such section. The 
Secretary shall carry out this subsection through the Assistant 
Secretary for Veterans' Employment.". 
Qi) Subsection (d) of such section is amended by inserting a comma 
and "upon the recommendation of the Assistant Secretary of Labor 
for Veterans' Employment," after "Secretary of Labor". 
ANNUAL REPORT TO CONGRESS 
38 use 2007. 
SEC. 307. Section 2007(c) is amended by adding at the end the 
following new sentence: "The report shall also include a report on 
activities carried out under section 2003A of this title.". 
NATIONAL EMPLOYMENT AND TRAINING PROGRAMS FOR VETERANS 
SEC. 308. (a) Chapter 41 is amended by adding at the end the 
following new sections: 
38 use 2009. 
"§ 2009. National veterans' employment and training programs 
"(a) The Secretary of Labor shall— 
"(1) administer through the Assistant Secretary of Labor for 
Veterans' Emplojnnent all national programs under the juris-
diction of the Secretary for the provision of employment and 
training services designed to meet the needs of disabled veter-
ans and veterans of the Vietnam era; 
"(2) in order to make maximum use of available resources, 
encourage all such national programs and all grantees under 
such programs to enter into cooperative arrangements with 
private industry and business concerns (including small busi-
ness concerns), educational institutions, trade associations, and 
labor unions; 
"(3) ensure that maximum effectiveness and efficiency are 
achieved in providing services and assistance to such veterans 
under all such national programs by coordinating and consult-
ing with the Administrator with respect to programs conducted 
under other provisions of this title, with particular emphasis on 
coordination of such national programs with readjustment 
counseling activities carried out under section 612A of this title, 
apprenticeship or other on-job training programs carried out 
under section 1787 of this title, and rehabilitation and training 
38 use 1500 et 
activities carried out under chapter 31 of this title; and 
*^9- 
"(4) ensure that job placement activities are carried out in 
coordination and cooperation with appropriate State public 
employment service officials. 
PUBLIC LAW 97-306—OCT. 14, 1982 
96 STAT. 1441 
38 u s e 2010. 
Establishment. 
"(b) Not later than February 1 of each year, the Secretary of Report to 
Labor shall submit to the Committees on Veterans' Affairs of the 
comSees 
House of Representatives and the Senate a report on the operation 
during the preceding fiscal year of national programs for the provi-
sion of emplo5nnent and training services designed to meet the needs 
of veterans described in subsection (a) of this section. Each such 
report shall include an evaluation of the effectiveness of such 
programs during such fiscal year in meeting the goals established in 
such subsection, the efficiency with which services were provided 
under such programs during such year, and such recommendation 
for further legislative action relating to veterans' employment as 
the Secretary considers appropriate. 
"§ 2010. Secretary of Labor's Committee on Veterans' Employment 
"(a) There is established within the Department of Labor an 
advisory committee to be known as the 'Secretary's Committee on 
Veterans' Emplo5rment'. The committee shall meet at least quar-
terly for the purpose of bringing to the attention of the Secretary 
problems and issues relating to veterans' employment. 
"(b) The committee shall be chaired by the Secretary of Labor. Chairman. 
The Assistant Secretary of Labor for Veterans' Employment shall 
serve as vice chairman of the committee. The committee shall Membership. 
include— 
"(1) representatives o
f
— 
"(A) the Administrator; 
"(B) the Secretary of Defense; 
"(C) the Secretary of Health and Human Services; 
"(D) the Director of the Office of Personnel Management; 
"(E) the Chairman of the Equal Emplojmient Opportunity 
Commission; and 
"(F) the Administrator of the Small Business Administra-
tion; and 
"(2) a representative of each of the chartered veterans' organi-
zations having a national employment program. 
"(c) Members of the committee shall serve without compensation Compensation 
or other reimbursement for their service on the committee.". 
(b) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new items: 
"2009. National veterans' emplojmient and training programs. 
"2010. Secretary of Labor's Committee on Veterans' Employment.". 
PERSONS ELIGIBLE FOR CHAPTER 42 EMPLOYMENT AND TRAINING 
PROGRAMS 
SEC. 309. Section 2011 is amended— 
(1) by inserting "(or who but for the receipt of military retired 
pay would be entitled to compensation)" in clauses (1) and (3) 
after "compensation"; and 
(2) by striking out the period at the end of clause (5) and 
inserting in lieu thereof "and the United States Postal Service 
and the Postal Rate Commission, and the term 'department, 
agency, or instrumentality in the executive branch' includes the 
United States Postal Service and the Postal Rate Commission.". 
38 u s e 2011. 
Definition. 
96 STAT. 1442 
PUBLIC LAW 97-306—OCT. 14, 1982 
38 u s e 2012. 
Regulations. 
38 u s e 2012 
note. 
REPORTS ON VETERANS EMPLOYMENT EMPHASIS UNDER FEDERAL 
CONTRACTS 
SEC. 310. (a) Section 2012 is amended by adding at the end the 
following new subsection: 
"(dXD Each contractor to whom subsection (a) of this section 
applies shall, in accordance with regulations which the Secretary 
shall prescribe, report at least annually to the Secretary on— 
"(A) the number of employees in the work force of such 
contractor, by job category and hiring location, who are veter-
ans of the Vietnam era or special disabled veterans; and 
"(B) the total number of new employees hired by the contrac-
tor during the period covered by the report and the number of 
such employees who £ire veterans of the Vietnam era or special 
disabled veterans. 
"(2) The Secretary shall ensure that the administration of the 
reporting requirement under paragraph (1) of this subsection is 
coordinated with respect to any requirement for the contractor to 
make any other report to the Secretary.". 
O
b
) Within 90 days after the date of the enactment of this Act, the 
Secretary of Labor shall prescribe regulations under subsection (d) 
of section 2012 of title 38, United States Code, as added by the 
amendment made by subsection (a). 
REPEAL OF EXEMPLARY REHABIUTATION CERTIFICATES PROGRAM 
SEC. 311. Section 6 of Public Law 90-83, approved September 11, 
1967 (29 U.S.C. 601-607), is repealed. 
TITLE IV—MISCELLANEOUS PROVISIONS 
38 u s e 770. 
Effective date. 
38 u s e 770 note. 
REMOVAL OF TIME RESTRICTION FOR FIUNG AN INSURANCE CLAIM; 
PROHIBITION OF INSURANCE PROCEEDS ESCHEATING TO A STATE 
SEC. 401. (a) Section 770 is amended— 
(1) by striking out the second sentence of subsection (c); and 
(2) by adding at the end the following new subsection: 
"(h) Insurance payable under this subchapter may not be paid in 
any amount to the extent that such amount would escheat to a 
State. Pajrment of insurance under this subchapter may not be made 
to the estate of the insured or the estate of any beneficiary of the 
insured unless it is affirmatively shown that any amount to be paid 
will not escheat to a State. Any amount to be paid under this 
subchapter shall be reduced to the extent necessary to comply with 
this subsection.". 
O
b
) The amendments made by subsection (a) shall take effect on 
October 1,1982. 
BURIAL FLAGS 
38 use 901. 
SEC. 402. (a) Section 901 is amended by adding at the end the 
following new subsection: 
"(e) The Administrator shall furnish a flag to drape the casket of 
each deceased person who is buried in a national cemetery by virtue 
of eligibility for burial in such cemetery under section 1002(6) of this 
title. After the burial, the flag shall be given to the next of kin or to 
such other person as the Administrator considers appropriate.". 
PUBLIC LAW 97-306—OCT. 14, 1982 
96 STAT. 1443 
(b) The amendment made by subsection (a) shall apply with Effective date. 
respect to burials after September 30,1982. 
^^ use 90i note. 
BURIAL BENEFITS FOR CERTAIN INDIGENT VETERANS WHOSE REMAINS 
ARE UNCLAIMED 
SEC. 403. Section 902(a) is amended by striking out "When a 
veteran" and all that follows through "the Administrator," and 
inserting in lieu thereof the following: "In the case of a deceased 
veteran— 
"(1) who at the time of death was in receipt of compensation 
(or but for the receipt of retirement pay would have been 
entitled to compensation) or was in receipt of pension, or 
"(2) who was a veteran of any war or was discharged or 
released from the active military, naval, or air service for a 
disability incurred or aggravated in line of duty, whose body is 
held by a State (or a political subdivision of a State), and with 
respect to whom the Administrator determines— 
"(A) that there is no next of kin or other person claiming 
the body of the deceased veteran, and 
"(B) that there are not available sufficient resources to 
cover burial and funeral expenses, 
the Administrator,". 
(b) The amendment made by subsection (a) shall apply with 
respect to burial and funeral expenses incurred after September 30, 
1982. 
38 u s e 902. 
Effective date. 
38 u s e 902 note. 
CLARIFICATION OF ELIGIBILITY FOR BURIAL BENEFITS FOR CERTAIN 
VETERANS WHO DIE IN CONTRACT NURSING HOME FACIUTIES 
SEC. 404. (a) Section 903(a) is amended— 
(1) by striking out "Where death occurs in a Veterans' Admin-
istration facility" and inserting in lieu thereof "When a veteran 
dies in a Veterans' Administration facility (as defined in section 
601(4) ofthis title)"; and 
(2) by inserting "or in an institution at which the deceased 
veteran was receiving nursing home care under section 620 of 
this title at the expense of the United States at the time of 
death" after "ofthis title". 
(b) The amendments made by subsection (a) shall apply with 
respect to deaths occurring after September 30,1982. 
38 u s e 903. 
Effective date. 
38 u s e 903 note. 
SUPERINTENDENTS OF NATIONAL CEMETERIES UNDER THE JURISDICTION 
OF THE SECRETARY OF THE ARMY 
SEC. 405. Notwithstanding section 7(bX2) of the National Cemeter-
ies Act of 1973 (87 Stat. 88), the provisions of the Act entitled "An 
Act to provide for selection of superintendents of national cemeter-
ies from meritorious and trustworthy members of the Armed Forces 
who have been disabled in the line of duty for active field service", 
approved March 24,1948, as in effect on the day before the effective 
date of section 7 of the National Cemeteries Act of 1973, shall not 
apply with respect to the appointment of the superintendent of a 
national cemetery under the jurisdiction of the Secretary of the 
Army. 
24 u s e 271-276 
note. 
96 STAT. 1444 
PUBLIC LAW 97-306—OCT. 14, 1982 
GUARANTEED LOANS TO REFINANCE LIENS ON MANUFACTURED HOMES 
AND TO PURCHASE MANUFACTURED-HOME LOTS; CHANGE IN NOMEN-
CLATURE 
38 use 1819. 
SEC. 406. (a) Section 1819(a) is amended— 
(1) in paragraph (1), by adding at the end the following new 
clause: 
"(G) To refinance in accordance with paragraph (5) of this 
subsection an existing loan that was made for the purchase of, 
and that is secured by, a manufactured home and to purchase a 
lot on which such manufactured home is or will be placed."; 
(2) in paragraph (2), by inserting "(other than the refinancing 
under clause (F) of such paragraph of an existing loan)" after 
"subsection"; 
(3) in paragraph (3), by striking out "(C) or (E)" and inserting 
in lieu thereof "(C), (E), or (G)"; and 
(4) by adding at the end the following new paragraph: 
"(5)(A) For a loan to be guaranteed for the purpose specified in 
paragraph (1)(G) of this subsection— 
"(i) the loan must be secured by the same manufactured home 
as was the loan being refinanced and such manufactured home 
must be owned and occupied by the veteran as such veteran's 
home; and 
"(ii) the amount of the loan may not exceed an amount equal 
to the sum of— 
"(I) the purchase price of the lot, 
"(II) the amount (if any) determined by the Administrator 
to be appropriate under paragraph (2) of this subsection to 
cover the cost of necessary preparation of such lot, 
"(III) the balance of the loan being refinanced, and 
"(IV) such closing costs (including any discount permitted 
Infra. 
pursuant to section 1803(c)(3)(E) of this title) as may be 
authorized by the Administrator, under regulations which 
the Administrator shall prescribe, to be included in such 
loan. 
"(B) When a loan is made to a veteran for the purpose specified in 
paragraph (1)(G) of this subsection, and the loan being refinanced 
was guaranteed, insured, or made under this section, the portion of 
the loan made for the purpose of refinancing such loan may be 
guaranteed by the Veterans' Administration under this chapter 
without regard to the amount of outstanding guaranty entitlement 
available for use by such veteran, and the amount of such veteran's 
guaranty entitlement shall not be charged as a result of any guar-
anty provided for such portion of such loan. For the purposes of 
section 18020b) of this title, such portion of such loan shall be 
deemed to have been obtained with the guaranty entitlement used 
to obtain the loan being refinanced.". 
38 use 1803. 
(b) Section 1803(c)(3) is amended— 
(1) by striking out "used:" in the matter preceding clause (1) 
and inserting in lieu thereof "used—"; 
(2) by striking out "or" at the end of clause (C); 
(3) by striking out the period at the end of clause (D) and 
inserting in lieu thereof a semicolon and "or"; and 
(4) by adding at the end the following new clause: 
"(E) to refinance indebtedness and purchase a manufactured-
Supra. 
home lot pursuant to section 1819(aXlXG) of this title, but only 
PUBLIC LAW 97-306—OCT. 14, 1982 
96 STAT. 1445 
with respect to that portion of the loan used to refinance such 
indebtedness.". 
(cXD Section 1811 is amended by striking out "mobile home" in 
subsections (cXD and (dXD and inserting in lieu thereof "manufac-
tured home". 
(2) Section 1819 is further amended— 
(A) by striking out "mobile" each place it appears and insert-
ing in lieu thereof "manufactured"; 
(B) by striking out "mobile-home" both places it appears in 
subsection (aX4XAXii) and inserting in lieu thereof "manufac-
tured-home"; and 
(C) by amending the section heading to read as follows: 
*'§ 1819. Loans to purchase manufactured homes and lots". 
(3) The item relating to such section in the table of sections at the 
beginning of chapter 37 is amended to read as follows: 
"1819. Loans to purchase manufactured homes and lots.". 
38 use 1811. 
38 use 1819. 
PERIOD 
FOR 
REQUEST 
OF 
WAIVER 
OF 
OVERPAYMENT 
SEC. 407. (a) Section 3102(a) is amended— 
(1) by striking out "two years" and inserting in lieu thereof 
"180 days"; and 
(2) by inserting a comma and "or within such longer period as 
the Administrator determines is reasonable in a case in which 
the payee demonstrates to the satisfaction of the Administrator 
that such notification was not actually received by such payee 
within a reasonable period after such date" after "payee". 
0)) The amendments made by subsection (a) shall apply only with 
respect to notifications of indebtedness that are made by the Admin-
istrator of Veterans* Affairs after March 31,1983. 
38 use 3102. 
Effective date. 
38 use 3102 
note. 
MINIMUM ACTIVE-DUTY SERVICE REQUIREMENT 
SEC. 408. (a) Section 3103A is amended— 
(1) by striking out "on or after the date of the enactment of 
the Veterans' Disability Compensation, Housing, and Memorial 
Benefits Amendments of 1981" in subsection (b)(2XB) and insert-
ing in lieu thereof "after October 16,1981,"; 
(2) by redesignating subsection (d) as subsection (e) and insert-
ing after subsection (c) the following new subsection (d): 
"(dXl) Notwithstanding any other provision of law and except as 
provided in paragraph (3) of this subsection, a person described in 
paragraph (2) of this subsection who is discharged or released from a 
period of active duty before completing the shorter o
f
— 
"(A) 24 months of continuous active duty, or 
"(B) the full period for which such person was called or 
ordered to active duty, 
is not eligible by reason of such period of active duty for any benefit 
under Federal law (other than this title or any other law adminis-
tered by the Veterans' Administration), and no dependent or survi-
vor of such person shall be eligible for any such benefit by reason of 
such period of active duty of such person. 
"(2) Paragraph (1) of this subsection applies— 
"(A) to any person who originally enlists in a regular compo-
nent of the Armed Forces after September 7,1980; and 
95 Stat. 1035. 
38 use 3103A. 
96 STAT. 1446 
PUBLIC LAW 97-306—OCT. 14, 1982 
10 use 1171. 
42 use 1305. 
5 use 2108. 
38 use 3103A 
note. 
Repeal. 
38 use 3103A 
note. 
"(B) to any other person who enters on active duty on or after 
the date of the enactment of this subsection and has not previ-
ously completed a continuous period of active duty of at least 24 
months or been discharged or released from active duty under 
section 1171 of title 10. 
"(3) Paragraph (1) of this subsection does not apply— 
"(A) to any person described in clause (A), (B), or (C) of 
subsection (bX3) of this section; or 
"(B) with respect to a benefit under (i) the Social Security Act 
other than additional wages deemed to have been paid, under 
section 229(a) of the Social Security Act (42 U.S.C. 429(a)), for 
any calendar quarter beginning on or after the date of the 
enactment of this subsection, or (ii) title 5 other than a benefit 
based on meeting the definition of preference eligible in section 
2108(3) of such title."; and 
(3) by adding at the end the following new subsection: 
"(f) Nothing in this section shall be construed to deprive any 
person of any procedural rights, including any rights to assistance in 
applying for or claiming a benefit.". 
(bXD Subsection (d) of section 3103A of title 38, United States 
Code, as added by subsection (aX2), shall not apply with respect to 
the receipt by any person of any benefit provided by or pursuant to 
law before the date of the enactment of this Act. 
(2) For the purposes of paragraph (1) of this subsection, additional 
wages deemed to have been paid under section 229(a) of the Social 
Security Act (42 U.S.C. 429(a)) shall be considered to be a benefit 
that was received by a person on the date that such person was 
discharged or released from active duty (as defined in section 101(21) 
of title 38, United States Code). 
(cXD Section 977 of title 10, United States Code, is repealed. 
(2) The table of sections at the beginning of chapter 49 of such title 
is amended by striking out the item relating to section 977. 
(d) Section 3103A of title 38, United States Code, as amended by 
subsection (a), is the law with respect to the matters stated in such 
section and applies, in accordance with its terms, with respect to 
benefits under Federal law, regardless of the particular title of the 
United States Code or other law under which any such benefit is 
provided or the department, agency, or instrumentality which 
administers any such benefit. 
38 u s e 5010 
note. 
38 u s e 5010. 
UMITATIONS ON CONTRACTING OUT ACTIVITIES AT VETERANS 
ADMINISTRATION HEALTH-CARE FACIUTIES 
SEC. 409. (a) It is the policy of the United States that the Veterans' 
Administration— 
(1) shall maintain a comprehensive, nationwide health-care 
system for the direct provision of quality health-care services to 
eligible veterans; and 
(2) shall operate such system through cost-effective means 
that are consistent with carrying out fully the functions of the 
Department of Medicine and Surgery of the Veterans' Adminis-
tration under title 38, United States Code. 
(b) Section 5010 is amended by adding at the end the following 
new subsection: 
"(cXD Notwithstanding any other provision of law but except as 
provided in paragraph (3) of this subsection— 
PUBLIC LAW 97-306—OCT. 14, 1982 
96 STAT. 1447 
"(A) a contract may not be entered into as a result of which 
Limitation. 
an activity at a health-care facility over which the Administra-
tor has direct jurisdiction (hereinafter in this subsection 
referred to as a 'Veterans' Administration health-care facility') 
would be converted from an activity performed by Federal 
employees to an activity performed by employees of a contractor 
of the Government unless the Chief Medical Director has deter-
mined that such activity is not a direct patient care activity or 
an activity incident to direct patient care; and 
"(B) in the case of an activity determined by the Chief Medi-
cal Director under clause (A) of this paragraph to be neither 
such activity, the Administrator, after considering the advice of 
the Chief Medical Director and the results of a study described 
in paragraph (4) of this subsection, may, in the exercise of the 
Administrator's sole discretion but subject to paragraph (2) of 
this subsection, enter into a contract as a result of which the 
activity would be converted from an activity performed by 
Federal employees to an activity performed by employees of a 
contractor of the Government. 
"(2) The Administrator may enter into a contract under the 
circumstances described in paragraph (1)(B) of this subsection only if 
the Administrator determines— 
"(A) based on the study described in paragraph (4) of this 
subsection with respect to the activity involved, that the cost to 
the Government of the performance of such activity under such 
a contract over the first five years of such performance (includ-
ing the cost to the Government of conducting the study) would 
be lower by 15 percent or more than the cost of performance of 
such activity by Federal employees; and 
"(B) that the quantity or quality of health-care services pro-
vided to eligible veterans by the Veterans' Administration at 
the facility at which the activity is carried out would be main-
tained or enhanced as a result of such a contract. 
"(3) The provisions of paragraph (1) of this subsection do not 
apply— 
(A) to a contract or agreement under chapter 17 or section 38 USC 601 
5011, 5011A, or 5053 of this title or under section 1535 of title 31; ^^«/? 
,„,, 
__. 
oo UbC 5011, 
"(B) to a contract under section 213 or 4117 of this title if the 31 us^ 1535. ' 
Chief Medical Director determines that such contract is neces-
sary in order to provide services to eligible veterans at a Veter-
ans' 
Administration 
health-care 
facility 
that 
could 
not 
otherwise be provided at such facility. 
"(4) A study referred to in paragraph (1)(B) of this subsection is a Study. 
study that— 
"(A) compares the cost of performing an activity at a Veter-
ans' Administration 
health-care facility 
through 
Federal 
employees with the cost of performing such activity through a 
contractor of the Government; 
96 STAT. 1448 
PUBLIC LAW 97-306—OCT. 14, 1982 
''(B) is based on an estimate of the most efficient and cost-
effective organization for the effective performance of the 
activity by Federal employees; 
"(C) with respect to the costs of performance of such activity 
through Federal employees, is based (to the maximum extent 
feasible) on actual cost factors of the Veterans' Administration 
for pay and retirement and other fringe benefits for the Federal 
employees who perform the activity; and 
"(D) takes into account (i) the costs to the Government 
(including severance pay) that would result from the separation 
of employees whose Federal emplojnnent may be terminated as 
a result of the Administrator entering into a contract described 
in paragraph (1)(B) of this subsection, and (ii) all costs to the 
Government associated with the contracting process. 
Notice, 
"(5) Prior to conducting a study described in paragraph (4) of this 
concessional 
subsection, the Administrator shall (in a timely manner) submit to 
committees. 
the appropriate committees of the Congress written notice of a 
decision to study the activity involved for possible performance by a 
contractor. 
^voT^- 
"(6) If, after completion of a study described in paragraph (4) of 
this subsection, a decision is made to convert performance of the 
activity involved to contractor performance, the Administrator shall 
promptly submit to the appropriate committees of the Congress 
written notice of such decision and a report with respect to such 
conversion. Each such report shall include— 
"(A) a summary of the study described in paragraph (4) of this 
subsection with respect to such contract; 
"(B) a certification that the study itself is available to such 
committees and that the results of the study meet the require-
ments of paragraph (2XA) of this subsection; 
"(C) a certification that the requirements of paragraph (2)(B) 
of this subsection would be met with respect to such contract 
and a summary of the information that supports such certifica-
tion; 
"(D) if more than 25 jobs are affected, information showing 
the potential economic impact on the Federal employees 
affected and the potential economic impact on the local commu-
nity and the Government of contracting for performance of such 
activity; and 
"(E) information showing the amount of the bid accepted for a 
contract for the performance of the activity and the cost of 
performance of such activity by Federal employees, together 
with the total estimated costs which the Government will incur 
because of the contract. 
PUBLIC LAW 97-306—OCT. 14, 1982 
96 STAT. 1449 
"(7) Not later than February 1,1984, and February 1 of each of the Report to 
five succeeding years, the Administrator shall submit a written ^o'^s^'e^s-
report to Congress describing the extent to which activities at 
Veterans' Administration health-care facilities were performed by 
contractors during the preceding fiscal year and the actual cost 
savings resulting from such contracts.". 
Approved October 14, 1982. 
LEGISLATIVE HISTORY—H.R. 6782 (S. 2913): 
HOUSE REPORT No. 97-660 (Comm. on Veterans' Affairs). 
SENATE REPORT No. 97-550 accompanying S. 2913 (Comm. on Veterans' Affairs). 
CONGRESSIONAL RECORD, Vol. 128 (1982): 
July 27, considered and passed House. 
Sept. 24, considered and passed Senate, amended. 
Sept. 28, House concurred in Senate amendments with amendments. 
Sept. 29, Senate concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 18, No. 41 (1982): 
Oct. 14, Presidential statement.