bill was referred to the Senate Committee on Labor and Public Welfare.

On August 3, 1964, H.R. 8251 was reported in the Senate (Rept. 1296), and it was considered and passed in the Senate on August 4, 1964.20 The bill was approved on August 14, 1964, and became Public Law 88-430.

2. DIGEST OF THE ACT

This act extends the statutory 1-year time limit for outpatient dental care in those cases where the veteran received a dishonorable discharge and the discharge is later corrected to a discharge under other than dishonorable conditions. The limit would be 1 year from the date of the correction of the discharge or from the date of enactment, whichever is later.

3. TEXT OF THE ACT

The following is the text of Public Law 88-430:

[Public Law 88-430, 88th Cong. (78 Stat. 438), Aug. 14, 1964]

AN ACT To amend section 612, title 38, United States Code, to authorize dental services and treatment in cases where discharges were corrected by competent authority from dishonorable to conditions other than dishonorable

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection 612(b) (2), title 38, United States Code, is amended by striking the semicolon at the end thereof and adding the following: ", except that if a disqualifying discharge or release has been corrected by competent authority application may be made within one year after the date of correction or the date of enactment of this exception, whichever is later;". I. Indemnification of Research Contractors

(Public Law 88-433, approved Aug. 14, 1964)

1. BACKGROUND

In recent years the Veterans' Administration has encountered difficulty in obtaining the necessary materials and supplies due to a reluctance on the part of contractors and suppliers to become involved in research for the development of new projects without securing some guarantee of indemnification which would protect them in the event of liability resulting from claims made as a result of damages from experiments performed pursuant to a contract with the Veterans' Administration.

Presently, no authority exists for inclusion of protection of this type to be placed in contracts negotiated by the Veterans' Administration. The cost of insurance, if such should be available, would be extremely high, if not prohibitive. Recently the problem has become acute, apparently stemming from several recent court decisions extending the legal doctrine of implied warranty of a manufactured product. The Department of Defense, as well as the National Institutes of Health, have authority which provides protection for contractors dealing with those two agencies of the Federal Government. The subject bill would provide identical protection for the Veterans' Administration and would permit the inclusion in future

20 Ibid., Aug. 4, 1964, p. 17396.

contracts of an indemnification clause to protect contractors who were found liable for a product manufactured or developed by them and from which injury resulted.

This bill, as amended, would authorize the United States to indemnify a contractor engaged in a medical research or development project for the Veterans' Administration against certain risks of an unusually hazardous nature. It also provides that a party to an indemnification agreement shall maintain financial protection at least. equal to the amount of private insurance available. However, discretionary authority is included whereby the Administrator may authorize a lesser amount whenever costs or terms of private insurance would make its purchase prohibitive.

2. LEGISLATIVE HISTORY

On September 26, 1963, Representative Olin Teague, of Texas, introduced H.R. 8611, proposing to facilitate the performance of medical research and development within the Veterans' Administration by providing for the indemnification of contractors. The bill was referred to the House Committee on Veterans' Affairs.

On October 1, 1963, the bill was reported in the House (Rept. 781). The bill was considered and passed in the House on October 7, 1963.21 The bill was referred to the Senate Committee on Labor and Public Welfare.

On May 28, 1964, the Subcommittee on Veterans' Affairs of the Labor and Public Welfare Committee held hearings on H.R. 8611. The bill was reported in the Senate on August 3, 1964 (Rept. 1297). On August 5, 1964, the bill passed the Senate with an amendment.22 On August 8, 1964, the House concurred with the Senate amendment.23 The bill was approved on August 14, 1964, and became Public Law 88-433.

3. DIGEST OF THE ACT

This act provides for the indemnification of contractors against liability and losses resulting from deaths or injuries to persons or property arising out of the direct performance of a medical research and development contract.

4. TEXT OF THE ACT

The following is the text of Public Law 88-433 :

[Public Law 88-433, 88th Cong. (78 Stat. 441), Aug. 14, 1964]

AN ACT To facilitate the performance of medical research and development within the Veterans' Administration, by providing for the indemnification of contractors

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 216 of title 38, United States Code, is amended by inserting "(1)" immediately after "(a)", and changing "(b)" and "(c)" to "(2)” and “(3)”, respectively.

(b) Such section 216 is further amended by adding at the end thereof a new subsection (b), as follows:

"(b) (1) With the approval of the Administrator, any contract for research authorized by this section or for medical research or development authorized

Congressional Record, Oct. 7, 1963, p. 11873.

Congressional Record (daily edition), Aug. 3, 1964, p. 17509.

23 Ibid., Aug. 6, 1964, p. 17672.

by section 4101 of this title, the performance of which involves a risk of an unusually hazardous nature, may provide that the United States will indemnify the contractor against either or both of the following, but only to the extent that they arise out of the direct performance of the contract and to the extent not covered by the financial protection required under subsection (b) (5)—

"(A) liability (including reasonable expenses of litigation or settlement) to third persons, except liability under State or Federal Workmen's Compensation Acts to employees of the contractor employed at the site of and in connection with the contract for which indemnification is granted, for death, bodily injury, or loss of or damage to property, from a risk that the contract defines as unusually hazardous.

"(B) loss of or damage to property of the contractor from a risk that the contract defines as unusually hazardous.

"(2) A contract that provides for indemnification in accordance with subsection (b) (1) must also provide for

"(A) notice to the United States of any claim or suit against the contractor for death, bodily injury, or loss of or damage to property; and

"(B) control of or assistance in the defense by the United States, at its election, of any such suit or claim for which indemnification is provided hereunder.

"(3) No payment may be made under subsection (b) (1) unless the Adminis trator, or his designee, certifies that the amount is just and reasonable. "(4) Upon approval by the Administrator, payments under subsection (b) (1) may be made from

"(A) funds obligated for the performance of the contract concerned; "(B) funds available for research or development, or both, and not otherwise obligated; or

"(C) funds appropriated for those payments.

"(5) Each contractor which is a party to an indemnification agreement under subsection (b)(1) shall have and maintain financial protection of such type and in such amounts as the Administrator shall require to cover liability to third persons and loss of or damage to the contractor's property. The amount of financial protection required shall be the maximum amount of insurance available from private sources, except that the Administrator may establish a lesser amount, taking into consideration the cost and terms of private insurance. Such financial protection may include private insurance, private contractual indemnities, self-insurance, other proof of financial responsibility, or a combination of such measures.

"(6) In administering the provisions of this section, the Administrator may use the facilities and services of private insurance organizations, and he may contract to pay a reasonable compensation therefor. Any contract made under the provisions of this subsection may be made without regard to the provisions of section 3709 of the Revised Statutes (41 U.S.C. 5), upon a showing by the Administrator that advertising is not reasonably practicable, and advance payments may be made.

"(7) The authority to indemnify contractors under this section does not create any rights in third persons which would not otherwise exist by law. "(8) As used in this section, the term 'contractor' includes subcontractors of any tier under a contract in which an indemnification provision pursuant to subsection (b) (1) is contained."

(c) Such section 216 is further amended by adding the following at the end of the catchline: "; indemnification of contractors".

(d) The analysis of chapter 3 of such title 38 regarding section 216 is amended by inserting before the period at the end thereof “; indemnification of

contractors"

SEC. 2. The amendments made by section 6 of the Act of July 7, 1964 (Public Law 88-361, 78 Stat. 297), shall take effect as of January 1, 1964.

J. Construction Authority for Hazard Park, Los Angeles, Calif. (Public Law 88-434, approved Aug. 14, 1964)

1. LEGISLATIVE HISTORY

On July 24, 1963, Representative Olin Teague, of Texas, introduced H.R. 7751, proposing to extend certain construction authority to the Administrator of Veterans' Affairs in order to provide adequate veterans' hospital facilities in Los Angeles, Calif. The bill was referred to the House Committee on Veterans' Affairs.

H.R. 7751 was reported in the House on November 26, 1963 (Rept. 924). The bill was considered and passed on March 17, 1964.24 The bill was referred to the Senate Committee on Labor and Public Welfare.

On May 28, 1964, the Subcommittee on Veterans' Affairs of the Labor and Public Welfare Committee held hearings on H.R. 7751. The bill was reported in the Senate on August 3, 1964 (Rept. 1295).

On August 4, 1964, the bill was considered and passed in the Senate.25 The bill was approved on August 14, 1964, and became Public Law 88-434.

2. DIGEST OF THE ACT

This act authorizes the Veterans' Administration to construct for the Department of Defense an Army Reserve Center on a site provided by the city of Los Angeles and upon completion authorizes the Department of Defense to assume full control and jurisdiction thereof and to relinquish to the Veterans' Administration all right, title, and interest in the Army Reserve Center located on the Hazard Park tract in Los Angeles, Calif.

3. TEXT OF THE ACT

The following is the text of Public Law 88-434:

[Public Law 88-434, 88th Cong. (78 Stat. 442), Aug. 14, 1964]

AN ACT To extend certain construction authority to the Administrator of Veterans' Affairs in order to provide adequate veterans' hospital facilities in Los Angeles, California

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in order to make available an adequate site for the proposed Veteran's Administration hospital on land known as Hazard Park, city of Los Angeles, California, the Administrator of Veterans' Affairs is authorized to construct for the Department of Defense an Army Reserve Center on a site approved by the Department of Defense to be provided for such purpose by the city of Los Angeles and pursuant to specifications established by such Department or any component thereof. Such construction may be effected under any procedure now authorized for the construction of Veterans' Administration hospitals.

24 Ibid., Mar. 17, 1964, p. 2844. Ibid., Aug. 4, 1964, p. 17395.

SEC. 2. Upon completion of such Reserve Center the Department of Defense is authorized to (1) assume full control and jurisdiction thereof, and (2) relinquish to the Veterans' Administration all right, title, and interest in and to the now existing Army Reserve Center located on the Hazard Park tract.

SEC. 3. Funds appropriated to the Veterans' Administration for the construetion of hospital and domiciliary facilities shall be available for the purpose of the first section of this Act.

K. Land Conveyance in McKinney, Tex.

(Public Law 88-438, approved Aug. 14, 1964)

1. LEGISLATIVE HISTORY

On March 25, 1964, Representative Ray Roberts, of Texas, introduced H.R. 10610, which proposed the conveyance of certain real property under the control of the Administrator of Veterans' Affairs to the city of McKinney, Tex. The bill was referred to the House Veterans' Affairs Committee.

The bill was reported in the House on May 14, 1964 (Rept. 1408). On June 1, 1964, the bill was passed over in the House.26 On June 15, 1964, the House considered and passed the bill. The bill was referred to the Senate Committee on Labor and Public Welfare.

On August 3, 1964, the bill was reported in the Senate (Rept. 1298). On Aug. 4, 1964, the Senate considered and passed the bill. The bill was approved on August 14, 1964, and became Public Law 88-435.

2. DIGEST OF THE ACT

This act authorizes the Administrator of Veterans' Affairs to convey to the city of McKinney, Tex., for 50 percent of its appraised value, approximately 39 acres of the Veterans' Administration reservation at McKinney for recreational purposes.

3. TEXT OF THE ACT

The following is the text of Public Law 88-438:

[Public Law 88-438, 88th Cong. (78 Stat. 444), Aug. 14, 1964]

AN ACT To provide for the conveyance of certain real property under the control of the Administrator of Veterans' Affairs

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Administrator of Veterans' Affairs shall be authorized to convey to the city of McKinney, Texas, at 50 per centum of its appraised value, and for recreational purposes, all right, title, and interest of the United States in and to a portion of the real property of the Veterans' Administration Hospital, McKinney, Texas, approximating thirty-nine acres. more or less. The exact legal description and the appraised value of such real property shall be determined by the Administrator of Veterans' Affairs and in the event a survey or an appraisal is required in order to make such determinations the city of McKinney shall bear the expense thereof.

2 Ibid., June 1, 1964, p. 11832.

27 Ibid., June 15, 1964, pp. 13253-13254. 28 Ibid., Aug. 3, 1964, p. 17396.