An Act to amend chapter 55 of title 38, United States Code, to establish safeguards relative to the accumulation and final disposition of certain benefits in the case of incompetent veterans
PL 86-146 (H.R.6319), enacted 08/07/1959

73 S T A T . ] 
PUBLIC LAW 86-146-AUG. 7, 1959 
297 
"b. A vacancy in the office of referee may be filled without any 
changes in the salary or arrangements upon the recommendations of 
the Director, the district judge or judges, and the circuit council that 
the office be so continued. 
If a change in the salary or arrangements 
is recommended by the Director, the district judge or judges, or the 
circuit council, a vacancy shall not be filled until the Conference has 
acted thereon." 
SEC. 2. Subdivision a of section 34 of the Bankruptcy Act (11 
tJ.S.C. 62a) is hereby amended by striking the word "senior" and 
inserting in the place thereof the word "chief" and to make the last 
sentence thereof read as follows: "Upon the expiration of his term, 
a referee in bankruptcy shall continue to perform the duties of his 
office until his successor is appointed and qualifies provided the filling 
of the vacancy has been authorized as provided m subdivision b of 
section 43 of this Act." 
Approved August 7, 1959. 
62 Stat. 42. 
11 u s e 62(a). 
Public Law 86-145 
AN ACT 
August 7, 1959 
To amend the Act of June 21, 1950, relating to the appointment of boards of 
[H. R. 3320] 
medical officers. 
Be it enacted l)y the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 2 of 
the Act of June 21,1950 (ch. 342,64 Stat. 249), is amended by striking 
out the last proviso and inserting the following in lieu thereof: ^''And 
provided further^ That competent medical authority shall consist of a 
board appointed from available medical officers or physicians under 
his jurisdiction by the head of whichever of the following depart-
ments or agencies is providing medical treatment for the member, or 
by a person designated by the head of that department or agency: 
" (1) Department of the Army 
"(2) Department of the Navy 
" (3) Department of the Air Force 
"0' ~ 
' " " ' "' 
,4) Department of Health, Education, and Welfare 
"(5) Veterans Administration 
If the hospitalization or medical care of the member is not provided 
by the United States, the board shall be appointed by the secretary 
of the department having jurisdiction of the member. Each board 
shall consist of at least three qualified medical officers or physicians 
one of whom must be specially qualified in the treatment of mental 
disorders." 
SEC. 2. Section 3 of the Act of June 21, 1950 (ch. 342, 64 Stat. 249), 
is amended by inserting the words "and the Administrator of Veter-
ans' Affairs" after the words "department concerned." 
Approved August 7, 1959. 
Armed Forces. 
M e n t a l compe-
tency boards. 
37 u s e 352. 
37 u s e 353. 
August 7, 1959 
[H. R. 6319] 
Public Law 86-146 
AN ACT 
To amend chapter 55 of title 38, United States Code, to establish safeguards 
relative to the accumulation and final disposition of certain benefits in the 
case of incompetent veterans. 
Be it eruicted hy the Senate and House of Representatives 
of the 
United, States of America in Congress assembled, That (a) section fjt^**®''®"^ bene-
3202(d) of title 38, United States Code, is amended by adding at the 
payments to sui-
end thereof the following sentences: "In the event of the death of a "^^72'liat 1233. 
298 
PUBLIC LAW 86-146-AUG. 7, 1959 
[73 STAT, 
mentally incompetent or insane veteran, all gratuitous benefits under 
laws administered by the Veterans' Administration deposited before 
or after the date of enactment of this sentence in the personal funds 
of patients trust fund on account of such veteran shall not be paid 
to the personal representative of such veteran, but shall be paid to the 
following persons living at the time of settlement, and in the order 
named: The surviving spouse, the children (without regard to age or 
marital status) in equal parts, and the dependent parents of such 
veteran, in equal parts. If any balance remains, such balance shall be 
deposited to the credit of the applicable current appropriation; except 
t hat there may be paid only so much of such balance as may be neces-
sary to reimburse a person (other than a political subdivision of the 
United States) who bore the expenses of last sickness or burial of 
the veteran for such expenses." 
72 Stat. 1235. 
(b) Sectlou 3203(a)(2)(B) of title 38, United States Code, is 
amended by inserting "under the last two sentences of section 3202(d) 
of this title or" immediately before "under this paragraph" both 
places it appears. 
72 Stat. 1235. 
gg^. 2. Sectiou 3203(b) of title 38, United States Code, is amended 
by redesignating paragraph (3) as paragraph (4) and by striking 
out paragraphs (1) and (2) thereof and inserting the following: 
" (1) Where any veteran having neither wife, child, nor dependent 
parent is being furnished hospital treatment, institutional or domi-
ciliary care by the Veterans' Administration, and is rated by the 
Veterans' Administration in accordance with regulations as being 
incompetent by reason of mental illness, the pension, compensation, 
or retirement pay of such veteran shall be subject to the provisions 
of subsection (a) of this section; 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. 
"(2) In any case in which such an incompetent veteran having 
neither wife nor child is being furnished hospital treatment, institu-
tional or domiciliary care without charge or otherwise by the United 
States, or any political subdivision thereof, and his estate from any 
source equals or exceeds $1,500, further payments of pension, compen-
sation, 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 as provided for 
the lump sum in paragraph (1) of this subsection, but in the event 
of the veteran's death before payment of such lump sum no part 
thereof shall be payable. 
"(3) Where any benefit is discontinued by reason of paragraph (2) 
of this subsection the Administrator may nevertheless apportion and 
pay to the dependent parents of the veteran on the basis of need all 
or any part of the benefit which would otherwise be payable to or 
for such incompetent veteran. 
Paragraph (2) of this subsection 
shall not prevent the payment, out of any remaining amounts discon-
tinued under that paragraph, on account of any veteran of so much 
of his pension, compensation, or retirement pay as equals the amount 
charged to the veteran for his current care and maintenance in the 
institution in which treatment or care is furnished him, but not more 
than the amount determined by the Administrator to be the proper 
charge as fixed by any applicable statute or valid administrative 
regulation." 
Effective date. 
SEC. 3. The amendments made by this Act shall take effect as of 
the first day of the first calendar month which begins more than 
ninety days after the date of enactment of this Act. 
Approved August 7, 1959.