APPENDIX B

[Excerpt from the Congressional Record, May 2, 1974]

VETERANS DISABILITY COMPENSATION AND SURVIVOR BENEFITS ACT OF 1974

Mr. ROBERT C. BYRD. Mr. President, at the request of the distinguished Senator from Indiana (Mr. HARTKE), and the matter having been cleared on both sides of the aisle, I ask unanimous consent that the Senate proceed to the consideration of Calendar Order No. 766, and that there be a time limitation thereon of not to exceed 6 minutes.

The PRESIDING OFFICER. Is there objection?

Mr. ALLEN. Mr. President, reserving the right to object, which bill is before the Senate?

Mr. HARTKE. S. 3072.

Mr. ALLEN. I may wish to amend the bill.

Mr. HARTKE. Mr. President, I suggest the absence of a quorum.

The PRESIDING OFFICER. The clerk will call the roll.

The second assistant legislative clerk proceeded to call the roll.

Mr. HARTKE. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

The PRESIDING OFFICER. Without objection, it is so ordered.

Mr. ROBERT C. BYRD. Mr. President, I renew my request.

Mr. ALLEN. Mr. President, reserving the right to object, I would like the request

to include the right of the Senator from Alabama to offer an amendment, whether germane or not.

Mr. ROBERT C. BYRD. With the time limitation remaining as I stated.

The PRESIDING OFFICER. Without objection, it is so ordered; with a 6-minute limitation.

The bill will be stated by title.

The bill was stated by title as follows:

A bill (S. 3072) to amend title 38, United States Code, to liberalize the provisions relating to payment of dependency and indemnity compensation, and for other purposes.

The Senate proceeded to consider the bill which had been reported from the Committee on Veterans' Affairs with an amendment to strike out all after the enacting clause and insert:

That this Act may be cited as the "Veterans Disability Compensation and Survivor Benefits Act of 1974."

TITLE I-VETERANS DISABILITY COMPENSATION

SEC. 101. (a) Section 314 of title 38, United States Code, is amended— (1) by striking out "$28" in subsection (a) and inserting in lieu thereof "$32" (2) by striking out "$51" in subsection (b) and inserting in lieu thereof "$59" (3) by striking out "$77" in subsection (c) and inserting in lieu thereof "$89" (4) by striking out "$106" in subsection (d) and inserting in lieu thereof "$122";

(5) by striking out "$149" in subsection (e) and inserting in lieu thereof "$171";

(6) by striking out "$179" in subsection (f) and inserting in lieu thereof “$211";

(7) by striking out "$212" in subsection (g) and inserting in lieu thereof "$250";

(8) by striking out "$245" in subsection (h) and inserting in lieu thereof "$289";

(9) by striking out "$275" in subsection (i) and inserting in lieu thereof "$325";

(10) by striking out "$495" in subsection (j) and inserting in lieu thereof "$584";

32-022 - 74-23

(341)

(11) by striking out "$47" and "$616" and "$862" subsection (k) and inserting in lieu thereof "$52" and "$727" and "$1,017", respectively;

(12) by striking out "$616" in subsection (1) and inserting in lieu thereof "$727" ;

(13) by striking out "$678" in subsection (m) and inserting in lieu thereof "$800";

(14) by striking out "$770" in subsection (n) and inserting in lieu thereof "$909";

(15) by striking out “$862” in subsections (o) and (p) and inserting in lieu thereof "$1,017";

(16) by striking out "$370" in subsection (r) and inserting in lieu thereof "$437"; and

(17) by striking out "$554" in subsection (s) and inserting in lieu thereof "$654".

(b) The Administrator of Veterans' Affairs may adjust administratively, consistent with the increases authorized by this section, the rates of disability compensation payable to persons within the purview of section 10 of Public Law 85-857 who are not in receipt of compensation payable pursuant to chapter 11 of title 38, United States Code.

SEC. 102. Section 315 (1) of title 38, United States Code, is amended

(1) by striking out "$31" in subparagraph (A) and inserting in lieu thereof "$36";

(2) by striking out "$53" in subparagraph (B) and inserting in lieu thereof "$61";

(3) by striking out "$67" in subparagraph (C) and inserting in lieu thereof "$77" ;

(4) by striking out "$83" and "$15" in subparagraph (D) and inserting in lieu thereof "$95" and "$17", respectively;

(5) by striking out "$21" in subparagraph (E) and inserting in lieu thereof "$24";

(6) by striking out "$36" in subparagraph (F) and inserting in lieu thereof "$41";

(7) by striking out “$53” and “$15” in subparagraph (G) and inserting in lieu thereof "$61" and "$17", respectively;

(8) by striking out "$25" in subparagraph (H) and inserting in lieu thereof "$29"; and

(9) by striking out "$48" in subparagraph (I) and inserting in lieu thereof "$55".

TITLE II-SURVIVORS DEPENDENCY AND INDEMNITY COMPENSATION

SEC. 201. Section 411 of title 38, United States Code, is amended to read as follows:

"(a) Dependency and indemnity compensation shall be paid to a widow, based on the pay grade of her deceased husband, at monthly rates set forth in the following table:

"If the veteran served as sergeant major of the Army, senior enlisted advisor of the Navy, chief master sergeant of the Air Force, sergeant major of the Marine Corps, or master chief petty officer of the Coast Guard, at the applicable time designated by sec. 402 of this title, the widow's rate shall be $316.

" 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 sec. 402 of this title, the widow's rate shall be $589.

"(b) If there is a widow with one or more children below the age of eighteen of a deceased veteran, the dependency and indemnity compensation paid monthly to the widow shall be increased by $26 for each such child.

"(c) The monthly rate of dependency and indemnity compensation payable to the widow shall be increased by $64 if she is (1) a patient in a nursing home or (2) helpless or blind, or so nearly helpless or blind as to need or require the regular aid and attendance of another person.".

SEC. 202. Section 413 of title 38, United States Code, is amended to read as follows:

"Whenever there is no widow of a deceased veteran entitled to dependency and indemnity compensation, dependency and indemnity compensation shall be paid in equal shares to the children of the deceased veteran at the following monthly rates:

"(1) One child, $108.

"(2) Two children, $156.

"(3) Three children, $201.

'(4) More than three children, $201, plus $40 for each child in excess of three.". SEC. 203. (a) Subsection (a) of section 414 of title 38, United States Code, is amended by striking out "$55" and inserting in lieu thereof "$64".

(b) Subsection (b) of section 414 of such title is amended by striking out “$92” and inserting in lieu thereof "$108".

(c) Subsection (c) of section 414 of such title is amended by striking out “$47” and inserting in lieu thereof "$55”.

SEC. 204. Section 322 (b) of title 38, United States Code, is amended to read as follows:

"(b) The monthly rate of death compensation payable to a widow or dependent parent under subsection (a) of this section shall be increased by $64 if the payee is (1) a patient in a nursing home or (2) helpless or blind, or so nearly helpless or blind as to need or require the regular aid and attendance of another person.".

SEC. 205. (a) Section 342 of title 38, United States Code, is amended by striking out "equal" and all that follows down through the end thereof and inserting in lieu thereof "those specified in section 322 of this title".

(b) Section 343 of such title is hereby repealed.

(c) The table of sections at the beginning of subchapter V of chapter 11 of title 38, United States Code, is amended by striking out the following:

"343. Conditions under which wartime rates are payable.".

SEC. 206. (a) The Administrator of Veterans' Affairs shall make a detailed study of claims for dependency and indemnity compensation relating to veterans, as defined in section 101 (2), title 38, United States Code, who at time of death within six months prior to the date of enactment of this Act were receiving disability compensation from the Veterans' Administration based upon a rating total and permanent in nature.

(b) The report of such study shall include (1) the number of the described cases, (2) the number of cases in which the specified benefit was denied, (3) an analysis of the reasons for each such denial, (4) the analysis of any difficulty which may have been encountered by the claimant in attempting to establish that the death of the veteran concerned was connected with his or her military, naval, or air service in the Armed Forces of the United States, and (5) data regarding the current financial status of the widow, widower, children, and parents in each case of denial.

(c) The report together with such comments and recommendations as the Administrator deems appropriate shall be submitted to the Speaker of the House and the President of the Senate not more than thirty days after the beginning of the Ninety-fourth Congress.

TITLE III—PAYMENT OF BENEFITS TO PERSONS UNDER LEGAL DISABILITY

SEC. 301. (a) Subsection (a) of section 3202 of title 38, United States Code, is amended to read as follows:

"(a) Where it appears to the Administrator that the interest of the beneficiary would be served thereby, payment of benefits under any law administered by the Veterans' Administration may be made directly to the beneficiary or to a relative or some other person for the use and benefit of the beneficiary, regardless of any legal disability on the part of the beneficiary. Where, in the opinion of the Administrator, any fiduciary receiving funds on behalf of a Veterans' Administration beneficiary is acting in such a number of cases as to make it impractical to conserve properly the estates or to supervise the persons of the beneficiaries, the Administrator may refuse to make future payments in such cases as he may deem proper."

(b) Subsection (c) of section 3202 of title 38, United States Code, is amended by deleting the phrase "guardian, curator, conservator, or other person legally vested with the care of the claimant or his estate", following the word "any" and inserting "fiduciary or other person for the purpose of payment of benefits payable under laws administered by the Veterans' Administration" and by deleting the word "estates" and inserting the word "benefits".

(c) Subsection (e) of section 3202 of title 38, United States Code, is amended by deleting the phrase "guardian, curator, conservator, or person legally vested with the care of the beneficiary or his estate," following the words "hands of a", and inserting in lieu thereof the words "fiduciary appointed by a State court or the Veterans' Administration" and by deleting the phrase "guardian, curator, conservator, or person legally vested with the care of the beneficiary or his estate," following the word "such", and inserting in lieu thereof the word "fiduciary".

(d) Subsections (f) and (g) of section 3202 of title 38, United States Code, are hereby repealed.

SEC. 302. Subsection (a) (4) of section 1701 of title 38, United States Code, is amended to read as follows:

"(4) The term 'guardian' includes a fiduciary legally appointed by a court of competent jurisdiction, or any other person who has been appointed by the Administrator under section 3202 of this title to receive payment of benefits for the use and benefit of the eligible person.".

TITLE IV-EFFECTIVE DATES

SEC. 401. The provisions of this Act shall become effective on May 1, 1974, except that title III shall become effective on the first day of the second calendar month following enactment.

Mr. HARTKE. Mr. President, as chairman of the Committee on Veterans' Affairs, it is my privilege and pleasure to urge the Senate to approve my bill S. 3072, the Veterans Disability Compensation and Survivor Benefits Act of 1974. This measure which is cosponsored by every member of the committee combines the provisions of S. 3067, the Veterans Disability Compensation Act of 1974, introduced by the distinguished and hard-working chairman of the Subcommittee on Compensation and Pensions (Mr. TALMADGE) and my bill, S. 3072, the Survivors Dependency and Indemnity Compensation Act of 1974.

Briefly, S. 3072, as reported, has six major purposes. First, it would provide for cost-of-living increases in the rates of disability compensation for the 2.2 million service-connected disabled veterans. Increases of 15 percent are authorized for those veterans with disabilities rated from 10 to 50 percent; 18 percent increases are authorized for those veterans with disabilities rated 60 to 100 percent and similar increases are also provided for statutory awards for rates payable for severe anatomical losses.

Second, increases of 15 percent are provided in the rates of additional compensation payable for over 350,000 veterans with disabilities rated 50 percent or more who receive these additional allowances for their dependents.

Third, the rates of dependency and indemnity compensation (DIC) for 375,000 widows and children are increased by 17 percent. The additional allowances payable to those in receipt of DIC and death compensation who are in need of aid and attendance are also increased 17 percent.

Fourth, the bill provides for the equalization of the rates of death compensation to the survivors of peacetime and wartime service where death occurred before January 1, 1957, thereby eliminating the distinction between the two periods of service.

Fifth, S. 3072 authorizes a study to be conducted by the Veterans' Administration to be submitted to the Congress at the beginning of the 94th Congress of applications for dependency and indemnity compensation (DIC) by widows of veterans who had a disability rated total and permanent at the time of death. Finally, the bill would authorize the Administrator of Veterans' Administration to make monetary benefit payments to the beneficiary upon the determination that the interest of the beneficiary would be served hereby, notwithstanding that a fiduciary has been appointed and regardless of any legal disability on the part of the beneficiary.

Mr. President, as is the case with all the legislation reported from the Veterans' Affairs Committee, the Veterans Disability Compensation and Survivor Benefits Act of 1974 is the result of cooperative efforts on the part of the entire committee. I am particularly indebted to Senator HERMAN E. TALMADGE, chairman of the Subcommittee on Compensation and Pensions and Senator CLIFFORD P. HANSEN, ranking minority member on both the subcommittee and the full committee, who conducted hearings reviewing the disability compensation and dependency and indemnity and death compensation programs. I would also like to thank them for their unflagging support in the development of this legislation. The subcommittee received testimony from Administration spokesmen including that of Odell Vaughn, Chief Benefits Director, Veterans' Administration. Testimony was also received from the Disabled American Veterans, American Legion, Veterans of Foreign Wars, Paralyzed Veterans of America, Blinded Veterans Association, the American Veterans of World War II, Korea, and Vietnam Officer's Association, the Fleet Reserve Association, National Association for Uniformed Services, and the Retired Officers Association. Submitted testimony was received from the Veterans of World War I, Inc., the Gold Star Wives of Amer