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"i. Adequate records are kept to show the progress made by the veteran toward his job objective and a periodic report showing the conduct and progress made in the course of training on the job will be provided for the Veterans' Administration.

"j. Appropriate credit is given the veteran for previous training or job experience, whether in the military service or elsewhere, his beginning wage adjusted to the level to which such credit advances him and his training period shortened accordingly. No course of training will be considered bona fide if given to a veteran who is already qualified by training and experience for the job objective.

“k. A copy of the training program as approved by the State agency is provided to the veteran and to the Veterans' Administration by the employer.

1. Upon completion of the training the veteran is given a certificate by the employer indicating the length and type of training provided and that the veteran has completed the course of training on the job satisfactorily.

"3. The Veterans' Administration is not authorized to award the benefits under this part, if it is found by either the Administrator or the appropriate State approving agency that the course of apprentice training or other

training on the job fails to meet the requirements of this paragraph. "(c) As used in this part the term 'institutional on-farm training shall include any course of instruction approved by the appropriate agency of the State or the Administrator. Such course shall be considered a full-time course when it combines (1) organized group instruction in agricultural and related subjects of at least two hundred hours per year (and of at least eight hours each month) at an educational or training institution, with (2) supervised work experience on a farm or other agricultural establishment. To be approved, such a course shall be developed with due consideration to the size and character of the farm on which the veteran is to receive his supervised work experience and to the need of the veteran, in the type of farming for which he is training, for proficiency in planning, producing, marketing, farm mechanics, conservation of resources, food conservation, farm financing, farm management, and the keeping of farm and home accounts. Such a course shall, in addition, satisfy the requirements of either of the following:

"1. If the veteran performs part of his course on a farm under his own control

"[a]. A. He shall receive not less than one hundred hours of individual instruction per year, not less than fifty hours of which shall be on such farm (with at least two visits by the instructor to such farm each month). Such individual instruction shall be given by the instructor responsible for the veteran's institutional instruction, and shall include instruction and homestudy assignments in the preparation of budgets, inventories, and statements, showing the production, use on the farm, and sale of crops, livestock, and livestock products ;

“h. He shall be assured of control of such farm (whether by ownership, lease, management, agreement, or other tenure arrangement) until the completion of his course; and

"C. Such farm shall be of a size and character which (1) together with the group-instruction part of the course, will occupy the full time of the veteran, (2) will permit instruction in all aspects of the management of a farm of the type for which the veteran is being trained, and (3) if the veteran intends to continue operating such farm at the close of his course, will assure him a satisfactory income under normal conditions.

“2. If the veteran performs part of his course as the employee of another

“a. He shall receive, on his employer's farm, not less than fifty hours of individual instruction per year (with at least one visit by the instructor to such farm each month). Such individual instruction shall be given by the instructor responsible for the veteran's institutional instruction;

“b. His employer's farm shall be of a size and character which (1) together with the group instruction part of the course, will occupy the full time of the veteran, and (2) will permit instruction in all aspects of the management of a farm of the type for which the veteran is being trained ;

"C. His employer shall agree to instruct him in various aspects of farm management in accordance with the training schedule developed for the veteran by his instructor, working in cooperation with his employer.

"3. The Veterans' Administration is not authorized to award the benefits under this part if [if] it is found, by either the Administrator [of Veterans' Affairs] or the appropriate State approving agency, that any approved course of institutional-on-farm training [has ceased] fails to meet the requirements of this [Act,] subparagraph (c). [the Veterans' Administration shall cut off all benefits under this part as of the date of such withdrawal of approval. Where it has been found that a variation in the proportion of hours of group instruction and individual instruction on the farm will better serve the conditions in a certain area, any program acceptable to the State approving agency which meets the total number of training hours called for in this Act (including assembled instruction, individual instruction, and assigned and supervised related home study and supervision in operational skills by the farmer trainer under the direction of the institution) shall be recognized as complying with the requirements of this Act; and]

[“d. the Administrator of Veterans' Affairs is authorized to contract with approved institutions for such courses where the Administrator finds that

the agreed cost is reasonable and fair. [“(d) As used in this part, the term 'customary cost of tuition' or 'customary charges' or 'customary tuition charges' shall mean that charge which an educational or training institution requires a nonveteran enrollee similarly circumstanced to pay as and for tuition for a course, except that the institution (other than a nonprofit institution of higher learning) is not regarded as having a 'customary cost of tuition for the course or courses in question in the following circumstances :

(“(A) Where the majority of the enrollment of the educational and training institution in the course in question consists of veterans in training under Public Laws 16 and 346, Seventy-eighth Congress, as amended; and [“(B) One of the following conditions prevails :

[“1. The institution has been established subsequent to June 22, 1944.

["2. The institution, although established prior to June 22, 1944, has not been in continuous operation since that date.

["3. The institution, although established prior to June 22, 1944, has subsequently increased its total tuition charges for the course to all students more than 25 per centum.

["4. The course (or a course of substantially the same length and character) was not provided for nonveteran students by the institution

prior to June 22, 1944. [“For any course of education or training for which the education or training institution involved has no customary cost of tuition, a fair and reasonable rate of payment for tuition, fees, or other charges for such course shall be determined by the Administrator. In any case in which one or more contracts providing a rate or rates of tuition have been entered into in two successive years, the rate established by the most recent contract shall be considered to be the customary cost of tuition notwithstanding the definition of 'customary cost of tuition' as hereinbefore set forth. For the purpose of the preceding sentence 'contract shall include contracts under Public Law 16 (Seventy-eighth Congress, March 24, 1943), Public Law 346 (Seventy-eighth Congress, June 22, 1944), or any other agreement in writing on the basis of which tuition payments have been made from the Treasury of the United States. If the Administrator finds that any institution has no customary cost of tuition he shall forthwith fix and pay or cause to be paid a fair and reasonable rate of payment for tuition, fees, and other charges for the courses offered by such institution. Any educational or training institution which is dissatisfied with a determination of a rate of payment for tuition, fees, or other charges under the foregoing provisions of this paragraph, or with any other action of the Administrator under the amendments made by the Veterans' Education and Training Amendments of 1950, shall be entitled, upon application therefor, to a review of such determination or action (including the determination with respect to whether there is a customary cost of tuition) by a board to be known as the ‘Veterans' Education Appeals Board' consisting of three members, appointed by the President. Members of the Board shall receive, out of appropriations available for administrative expenses of the Veterans Administration, compensation at the rate of $50 for each day actually spent by them in the work of the Board, together with necessary travel and subsistence expenses. The Administrator of Veterans Affairs shall provide for the Board such stenographic, clerical, and other assistance and such facilities and services as may be necessary for the discharge of its functions. Such Board shall be subject, in respect to hearings, appeals, and all other actions and qualifications, to the provisions of sections 5 to 11, inclusive, of the Administrative Procedure Act, approved June 11, 1946, as amended. The decision of such Board with respect to all matters shall constitute the final administrative determination. In no event shall the Board fix a rate of payment in excess of the maximum amount allowable under the Servicemen's Readjustment Act of 1944, as amended. Nothing contained in these amendments shall in any way affect the provisions of the first proviso in paragraph 1 of this part VIII, as amended.

[“Any institution having a 'customary cost of tuition' estabļished under this part may revise and improve an existing course (or establish a new related course) of substantially the same length and character subject to the same customary cost of tuition : Provided, That nothing in the foregoing amendments shall be construed to affect adversely any legal rights which have accrued prior to the date of enactment of the Veterans' Education and Training Amendments of 1930, or to affect payments to educational or training institutions under contracts in effect on such date: Provided further, That during negotiations for a contract, and during the pendency of any appeal which a school may make, the Veterans' Administration shall continue to make further payments to the school in such amount as the Administrator considers to be 'fair and reasonable,' but not less than 75 per centum of the most recent rate paid to the school.

[“Any educational or training institution which has a contract covering any period subsequent to August 24, 1949, shall be entitled to a review by the Veterans' Education Appeals Board of the rate of tuition, fees and other charges established in such contract. Application for such review must be made within sixty days following the date of enactment of Veterans' Education and Training Amendments of 1950.]

[(c)] (d) 1. In order to secure or retain approval to train veterans, any school operated for profit [which, during any period, has fewer than twenty-five students, or one-fourth of the students enrolled (whichever is larger), paying their own tuition, in addition to meeting all requirements of existing law,] will be required to submit to the appropriate State approving agency a written application, in form and contents prescribed by the State approving agency, setting forth the course or courses of training. The written application covering each course must include the following:

“a. Title of the course and specific description of the objective for which given.

“b. Length of course.

"C. A detailed curriculum showing subjects taught, type of work or skills to be learned, and approximate length of time to be spent on each.

“d. A showing of educational and experience qualifications of the instructors.

“e. A description of space, facilities, and equipment used for the course.

"f. A statement of the maximum number of students proposed to be trained in the course at one time.

“g. A statement of the educational prerequisite for such a course. “2. The appropriate approving agency of the State or the Administrator may approve the application of such school when the school is found upon investigation to have met the following criteria :

"a. The curriculum and instruction are consistent in quality, content, and length with similar courses in the public schools or other private schools with recognized and accepted standards.

“b. There is in the school adequate space, equipment, instructional material, and instructor personnel to provide satisfactory training. When approval is given, it shall state the maximum number authorized to be trained in each course.

"c. Educational and experience qualifications of the instructor are adequate as determined by the State approval agency.

“d. Adequate records are kept to show attendance, progress, and conduct, with periodic reports to be provided to the Veterans' Administration; and there are clearly stated and enforced standards of attendance, progress, and conduct.

“e. Appropriate credit is given for previous training or experience, with training period shortened proportionately. No course of training will be considered bona fide as to a veteran who is already qualified by training and experience for the course objective.

"f. A copy of curriculum as approved is provided to the veteran and the Veterans' Administration by the school.

"g. Upon completion of the training, the veteran is given a certificate by the school indicating the approved course, title, and length, and that the training was completed satisfactorily.

“h. Such additional criteria established by the State approving agency as it may deem necessary for approval of schools training veterans under this part.

“3. No new course, or additions to the capacity of an existing course, in any school operated for profit, shall be approved if the State approving agency shall determine that the occupation for which the course is intended to provide training is crowded in the State where the training is to be given and that existing training facilities are adequate.

"4. The Veterans Administration is not authorized to award benefits under this part if it is found by either the appropriate State approving agency or the Administrator that the course offered by a school operated for profit fails to meet the applicable requirements of this subparagraph [(e)] (d) [; but the findings of the State approving agency on such requirements shall be final.] or the Administrator finds that the school has submitted will

fully false or misleading claims. [“12. For the purposes of this part, the present war shall not be considered as terminating, in the case of any individual, before the termination of such individual's first period of enlistment or reenlistment contracted within one year after the date of the enactment of the Armed Forces Voluntary Recruitment Act of 1945."]

[SEC. 401. Section 3, Public Law Numbered 16, Seventy-eighth Congress, is hereby amended to read as follows:]

[SEC. 3.] "12. The appropriation for the Veterans Administration, ‘Administration, [salaries and expenses] medical, hospital, and domiciliary services', [compensations and pensions] shall be available for necessary expenses under [part VII, as amended, or part VIII] this part of Veterans Regulation [numbered] 1 (a), and there is hereby authorized to be appropriated such additional amount or amounts as may be necessary to accomplish the purposes [thereof] hereof. [Such expenses may include, subject to regulations issued by the Administrator and in addition to medical care, treatment, hospitalization, and prosthesis, otherwise authorized, such care, treatment, and supplies as may be necessary to accomplish the purposes of part VII, as amended, or part VIII of Veterans Regulation Numbered 1 (a).] Any such appropriation shall also be available for use by the Administrator in reimbursing State and local agencies for reasonable expenses incurred by them in (1) rendering necessary services in ascertaining the qualifications of industrial establishments for furnishing on-thejob training to veterans under the provisions of (part VIII] this part of such l'egulation, and in the supervision of industrial establishments furnishing such training, or (2) furnishing, at the request of the Administrator, any other services or facilities in connection with the administration of programs for training on the job under such provisions, or (3) [furnishing, at the request of the Administrator, information concerning educational opportunities available in schools and colleges.”]

[SEC. 402. Public Law Numbered 16, Seventy-eighth Congress, is hereby amended by adding thereto a new section 4 to read as follows:]

["Sec. 4. Any books, supplies, or equipment furnished a trainee or student under part VII or part VIII of Veterans Regulation Numbered 1 (a) shall be deemed released to him : Provided, That if he fail, because of fault on his part to complete the course of training or education cfforded thereunder, he may berequired, in the discretion of the Administrator, to return any or all of such books, supplies, or equipment not actually expended or to repay the reasonable value thereof: Provided further, That returned books, supplies, or equipment may be turned in to educational or training institutions for credit under such terms as may be approved by the Administrator, or disposed of in such other manner as may be approved by the Administrator.”]

[SEC. 403. Paragraph 1, part VII, Veterans Regulation Numbered 1 (a) (Public Law Numbered 16, Seventy-eight Congress), is hereby amended by inserting after the word "time" the words “on or” and deleting the date “December 6, 1941" and substituting therefor the date "September 16, 1940”.] rendering necessary serv-. ices in ascertaining the qualifications of profit institutions for furnishing education and training under the provisions of this part of such regulation and in the supervision of such institutions."

Sec. 3. Any person who served in the active military, naval, or air service on or after June 27, 1950, and prior to such a date as shall hereafter be determined by

Presidential proclamation or concurrent resolution of the Congress, shall be entitled to job counseling and employment placement services subject to the provisions and limitations of title IV of the Servicemen's Readjustment Act of 1944, as amended. Sec. 4. This Act may be cited as the Servicemen's Readjustment Act of 1951".

The CHAIRMAN. While the committee has not prejudged the merits of the pending proposal, I feel that I speak for the members of this committee when I say that some legislation providing education and training benefits for veterans who have served in the United States armed services since June 27, 1950, will be approved by the Congress. The purpose of these hearings is to assist this committee and the Senate in determining the form and content which such legislation shall take.

The committee had hoped to hear, as its first witness this morning, the Honorable Walter F. George, of Georgia, one of the authors of S. 1940. Advice has been received, however, that Senator George will be unable to appear this morning because of the pressure of business before the Senate Finance Committee, of which he is chairman. It is hoped that Senator George will be able to present his views on this bill to the committee at a later date.

Senator Kerr who was to have been a witness this morning has not yet arrived, so we will proceed with the hearing; and the representative from the Bureau of the Budget, Mr. Philip S. Hughes, budget examiner for veterans' affairs, will be the first witness.

Do you have a prepared statement, Mr. Hughes?

STATEMENT OF PHILIP 'S. HUGHES, BUDGET EXAMINER FOR

VETERANS' AFFAIRS, BUREAU OF THE BUDGET

Mr. Hughes. No, sir; I have a report which I would like to use as the basis of my statement.

The CHAIRMAN. Do you wish the entire report printed in the record ?

Mr. Hughes. Yes, sir; I would like to read the entire report into the record if I may.

The CHAIRMAN. You may proceed.

Mr. HUGHES. S. 1940 would provide education or training to any veteran of 90 days' military service since June 27, 1950, with other than a dishonorable discharge, whose training was interrupted by reason of his entrance into service or who desires a refresher course. Time spent while in military service in courses substantially the same as civilian courses would be deducted in the determination of eligibility and entitlement. Veterans who had not passed their twenty-third birthday on June 27, 1950, or the date they entered service, whichever is later, would be deemed to have had their training interrupted.

The amount of training to which the veteran would be entitled is computed on the basis of 1 month of full-time training for each month of active service. The provisions of the bill would enable each trainee to complete at least one school term. The individual veteran whose training was interrupted would have a maximum entitlement of 48 months under this proposed bill. Other veterans would be entitled to a maximum of 12 months.

Training received under the Servicemen's Readjustment Act and under the draft bill together could not exceed a total of 4 years. The veteran must enter training within 2 years after his date of discharge and complete training 7 years after a date to be established by Presidential proclamation or concurrent resolution of the Congress.

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