On August 14, 1963, the bill was reported in the House (Rept. No. 679), and was considered and passed in the House on August 23, 1963.11 The bill was referred to the Senate Committee on Labor and Public Welfare.

On October 9, 1963, the Subcommittee on Veterans' Affairs of the Committee on Labor and Public Welfare held hearings on H.R. 5691. The bill was reported to the Senate on December 9, 1963 (Rept. No. 755).

H.R. 5691 passed the Senate on December 10, 1963.12 It was approved on December 17, 1963, and became Public Law 88-207.

2. DIGEST OF THE ACT

This act allows the Administrator of Veterans' Affairs to delegate to the Chief Medical Director the authority to appoint the chairman and secretary of disciplinary boards, and to act upon the recommendations of such boards in cases involving inaptitude, inefficiency, or misconduct of physicians, dentists, and nurses appointed in the Department of Medicine and Surgery. Previously, the Chief Medical Director appointed the members of the boards, but the Administrator appointed the chairman and secretary directly.

This legislation corrects a situation wherein a person guilty of misconduct and slated for demotion, suspension, or discharge must have such action personally approved by the Administrator, whereas authority to take similar action in the case of higher ranking employees in the competitive service can be taken at lower administrative levels. Any person against whom disciplinary action is taken under this authority has the right to appeal to the Administrator.

3. TEXT OF THE ACT

The following is the text of Public Law 88-207:

[Public Law 88-207, 88th Cong. (77 Stat. 402), Dec. 17, 1963]

AN ACT To amend title 38 of the United States Code to allow the Administrator of Veterans' Affairs to delegate to the Chief Medical Director in the Department of Medicine and Surgery, authority to act upon the recommendations of the disciplinary boards provided by section 4110 of title 38, United States Code

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 4110 of title 38, United States Code, is amended by adding at the end thereof the following new subsection (e) to read as follows:

"(e) The Administrator, within such limitations as he may prescribe, may delegate to the Chief Medical Director the authority vested in him by subsections (b) and (d) of this section to (1) appoint the chairman and secretary of a disciplinary board, such official to have the power prescribed by this section, and (2) receive and act upon the recommendations of such a board. Any person against whom disciplinary action is taken under authority delegated pursuant to this subsection shall have the right to appeal such action to the Administrator, but in the absence of such an appeal the decision of the Chief Medical Director shall have the same force and effect as a decision of the Administrator."

11 Ibid., Aug. 23, 1963, p. 16564. 12 Ibid., Dec. 10, 1963, p. 24087.

F. Interest on Capital Funds

(Public Law 88-274, approved Feb. 29, 1954)

1. LEGISLATIVE HISTORY

On August 20, 1963, Senator Ralph Yarborough, of Texas, introduced S. 2064, proposing to relieve the Veterans' Administration from paying interest on the amount of capital funds transferred in fiscal year 1962 from the direct loan revolving fund to the loan guarantee revolving fund. The bill was referred to the Senate Committee on Labor and Public Welfare.

The Subcommittee on Veterans' Affairs of the Labor and Public Welfare Committee held hearings on the bill on October 9, 1963. The bill was reported to the Senate on December 9, 1963 (Rept. 754), and was considered and passed by the Senate on December 10, 1963.13 The bill was referred to the House Committee on Veterans' Affairs. Hearings in the House were held on a companion bill, H.R. 7932, on November 20, 1963, and the bill was reported in the House on January 29, 1964 (Rept. 1112).

On February 17, 1964, S. 2064 was considered and passed by the House in lieu of H.R. 7932.14 The bill was approved on February 29, 1964, and became Public Law 88-274.

2. DIGEST OF THE ACT

This act relieved the Veterans' Administration from the requirement that it pay interest of approximately $4 million annually to the Treasury on $105.7 million advanced in fiscal year 1962 from the direct loan revolving fund, which was not used for making direct loans and from which earnings were not received.

3. TEXT OF THE ACT

The following is the text of Public Law 88-274:

[Public Law 88-274, 88th Cong. (78 Stat. 147), Feb. 29, 1964]

AN ACT To relieve the Veterans' Administration from paying interest on the amount of capital funds transferred in fiscal year 1962 from the direct loan revolving fund to the loan guaranty revolving fund

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1823 (b) of title 38. United States Code, is amended by adding at the end thereof the following sentence: "The Administrator shall not be required to pay interest on transfers made pursuant to the Act of February 13, 1962 (76 Stat. 8), from the capital of the 'direct loans to veterans and reserves revolving fund' to the loan guaranty revolving fund' and adjustments shall be made for payments of interest on such transfers before the date of enactment of this sentence."

13 Ibid., Dec. 10, 1963, p. 24087.

14 Congressional Record (daily edition), Feb. 17, 1964, p. 2839.

G. Educational Assistance for Children of Permanently and Totally Disabled Veterans

(Public Law 88-361, approved July 7, 1964)

1. LEGISLATIVE HISTORY

On January 9, 1959, Representative Olin Teague, of Texas, introduced H.R. 221, proposing to amend chapter 35 of title 38, United States Code, to provide educational assistance to the children of veterans who are permanently and totally disabled from an injury or disease arising out of active military, naval, or air service during a period of war or the induction period. The bill was referred to the House Committee on Veterans' Affairs.

On July 30, 1963, Senator Ralph Yarborough, of Texas, introduced a similar bill, S. 1959, which was referred to the Senate Committee on Labor and Public Welfare.

The House bill was reported in the House on August 14, 1963 (Rept. 677). On August 19, 1963, the bill was considered and passed by the House.15 The bill was referred to the Senate Committee on Labor and Public Welfare.

On October 9, 1963, the Subcommittee on Veterans' Affairs of the Labor and Public Welfare Committee held hearings on S. 1959 and H.R. 221. On December 9, 1963, H.R. 221 was reported in the Senate. On December 10, 1963, the bill was considered and passed the Senate with amendments.16

On June 18, 1964, the House agreed to three Senate amendments, disagreed to two Senate amendments, and further amended one of the Senate amendments. On June 23, 1964, the Senate cleared the bill for signing after receding from certain Senate amendments and concurring in the House amendment to the Senate amendment.18 The bill was approved on July 7, 1964, and became Public Law 88-361.

2. DIGEST OF THE ACT

This act extends the benefits of the war orphans educational assistance program to children of veterans who have a "total disability permanent in nature" resulting from a service-connected disability. Previously this assistance was available to the children of veterans with service-connected disabilities, but only after the death of the veteran.

The term "total disability permanent in nature" is defined as a disability rated total for the purpose of disability compensation which is based upon an impairment reasonably certain to continue throughout the life of the disabled person.

15 Congressional Record, Aug. 19, 1963, p. 15301.

16 Congressional Record (daily edition), Dec. 10, 1963, p. 24086.

17 Ibid., June 18, 1964, pp. 13845-13848.

1 Ibid.. June 23, 1964, pp. 14237-14240.

3. TEXT OF THE ACT

The following is the text of Public Law 88-361:

[Public Law 88-361, 88th Cong. (78 Stat. 297), July 7, 1964]

AN ACT To amend chapter 35 of title 38, United States Code, to provide educational assistance to the children of veterans who are permanently and totally disabled from an injury or disease arising out of active military, naval, or air service during a period of war or the induction period

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 1701(a)(1) of title 38 United States Code, is amended by inserting the following new sentence after the first sentence thereof: "Such term also includes the child of a person who has a total disability permanent in nature resulting from a service-connected disability arising out of service as described in the first sentence hereof, or who died while a disability so evaluated was in existence."

(b) Section 1701 (a) of title 38, United States Code, is amended by adding at the end thereof the following:

"(10) The term 'total disability permanent in nature' means any disability rated total for the purposes of disability compensation which is based upon an impairment reasonably certain to continue throughout the life of the disabled person."

(c) Section 1701 (d) of title 38, United States Code, is amended by striking out the word "death" both places it appears and inserting in lieu thereof "disability or death".

SEC. 2. Section 1711 of title 38, United States Code, is amended by adding a new subsection (d) as follows:

"(d) If any child pursuing a program of education, or of specialized restorative training, under this chapter ceases to be an 'eligible person' because the parent from whom eligibility is derived is found to no longer have a 'total disability permanent in nature', as defined in section 1701 (a) (10) of this title, then such child (if he has sufficient remaining entitlement) may, nevertheless, be afforded educational assistance under this chapter until the end of a quarter or semester for which enrolled if the educational institution in which he is enrolled is oper ated on a quarter or semester system, or if the educational institution is not so operated until the end of the course, or until nine weeks have expired, whichever first occurs."

SEC. 3. (a) Section 1712 (a) (3) of title 38, United States Code, is amended to read as follows:

“(3) if the Administrator first finds that the parent from whom eligibility is derived has a service-connected total disability permanent in nature, or if the death of the parent from whom eligibility is derived occurs, after the eligible person's eighteenth birthday but before his twenty-third birthday, then (unless paragraph (4) applies) such period shall end five years after, whichever date first occurs (A) the date on which the Administrator first finds that the parent from whom eligibility is derived has a service connected total disability permanent in nature, or (B) the date of death of the parent from whom eligibility is derived ;".

(b) Section 1712 of title 38, United States Code, is amended by adding at the end thereof a new subsection as follows:

"(d) Nothwithstanding the provisions of subsection (a) of this section, an eligible person may be afforded educational assistance beyond the age limitation applicable to him under such subsection by a period of time equivalent to any period of time which elapses between the eighteenth birthday of such eligible person or the date on which an application for benefits of this chapter is filed on behalf of such eligible person, whichever is later, and the date of final approval of such application by the Administrator; but in no event shall educational assistance under this chapter be afforded an eligible person beyond his thirty-first birthday by reason of this subsection."

SEC. 4. Section 1762(a) of title 38, United States Code, is amended by adding the following clause before the period at the end thereof: "whether eligibility is based upon the death or upon the total permanent disability of the parent."

SEC. 5. In the case of any individual who is an "eligible person" within the meaning of section 1701(a)(1) of title 38, United States Code, solely by virtue of the amendments made by this Act, and who is above the age of seventeen years

and below the age of twenty-three years on the date of enactment of this Act, the period referred to in section 1712 of title 38, United States Code, shall not end with respect to such individual until the expiration of the five-year period which begins on the date of enactment of this Act, excluding from such five-year period any period of time which may elapse between the date on which application for benefits of chapter 35, United States Code, is filed on behalf of an eligible person and the date of final approval of such application by the Administrator of Veterans' Affairs; but in no event shall educational assistance under chapter 35, title 38, United States Code, be afforded to any eligible person beyond his thirty-first birthday by reason of this section.

SEC. 6. Section 1741(b) of title 38, United States Code, is amended to read as follows:

"(b) The total period of educational assistance under this subchapter and other subchapters of this chapter may not exceed the amount of entitlement as established in section 1711 of this title, except that the Administrator may extend such period in the case of any person if he finds that additional assistance is necessary to accomplish the purpose of special restorative training as stated in subsection (a) of this section."

SEC. 7. Section 1643 of title 38, United States Code, is amended by adding at the end thereof the following:

"(c) In order that effective State control may be maintained over educational institutions participating in educational programs carried on under this title, the Administrator shall continue to utilize State approving agencies in the administration of such programs."

4. RELATED LEGISLATION

One of the Senate amendments which was incorporated into Public Law 88-361 contained substantially the content of S. 2636, which was introduced by Senator Lister Hill on March 16, 1964, and referred to the Labor and Public Welfare Committee. This bill proposed an amendment to chapter 35 of title 38, United States Code, relating to educational assistance for war orphans, to provide that the Administrator may afford special restorative training for an additional period of time when he finds such is necessary to overcome or lessen the effects of a physical or mental disability which handicaps the child in the pursuit of his educational program.

On May 28, 1964, the Subcommittee on Veterans' Affairs of the Labor and Public Welfare Committee held hearings on S. 2636. Section (a) of the bill was incorporated in H.R. 221 (Public Law 88-361). Section (b) of the bill, which designated the effective date of this provision, was incorporated in H.R. 8611, which became Public Law 88433.

H. Outpatient Dental Care on Correction of Discharge

(Public Law 88-430, approved Aug. 14, 1964)

1. LEGISLATIVE HISTORY

On August 27, 1963, Representative James Bromwell, of Iowa, introduced H.R. 8251, proposing the authorization of dental services and treatment in cases where discharges were corrected by competent authority from dishonorable to conditions other than dishonorable. The bill was referred to the House Veterans' Affairs Committee.

On May 14, 1964, the bill was reported in the House (Rept. 1406), and it was considered and passed by the House on June 1, 1964.19 The

19 Ibid., June 1, 1964, p. 11831.