B-125037 O.M., MAY 5, 1982

B-125037 O.M., MAY 5, 1982

SUBJECT: VETERANS APPRENTICESHIP AND ON-THE-JOB TRAINING PROGRAMS (CODE 406791) B-125037

SENIOR EVALUATOR, HRD - CAROLYN JACKSON:

THIS IS IN RESPONSE TO YOUR REPORT DRAFT AND INQUIRIES REGARDING THE VETERANS ADMINISTRATION (VA) APPRENTICESHIP AND ON-THE-JOB TRAINING ASSISTANCE PROGRAMS. WE HAVE CHECKED ALL AUTHORITIES CITED IN YOUR DRAFT. WE HAVE ALSO EXAMINED THE LEGISLATIVE HISTORY OF THE VETERANS' READJUSTMENT BENEFITS ACT OF 1966, PUB.L. 89-358, 80 STAT. 12, AND THE VETERANS' PENSION AND READJUSTMENT ACT OF 1967, PUB.L. 90-77, 81 STAT. 178, TO DETERMINE THE REASONS WHY CONGRESS ESTABLISHED THESE TRAINING ASSISTANCE PROGRAMS.

I. REACTION TO DRAFT REPORT

WHILE WE FOUND NO LEGAL ERRORS IN YOUR DRAFT, WE DO SUGGEST, HOWEVER, THAT YOU ADD TO THE LEGISLATIVE BACKGROUND OF THE 1966 AND 1967 ACTS. OUR EXAMINATION OF THE CONGRESSIONAL RECORD INDICATES THAT THE 1966 ACT WAS THE CULMINATION OF A 10-YEAR EFFORT TO PASS A BILL ON BEHALF OF SOLDIERS WHO SERVED AFTER JANUARY 31, 1955 - THE DATE ON WHICH THE KOREAN CONFLICT ENDED. IT APPEARS THAT THE MAIN REASON THAT IT TOOK SO LONG WAS THE DIFFICULTY IN OVERCOMING THE OPINION OF MANY MEMBERS OF CONGRESS THAT EVEN THOUGH SOLDIERS WHO SERVED AFTER JANUARY 31, 1955, MIGHT BE SENT TO AREAS OF "COLD WAR" HOSTILITIES, THEY WERE NOT ENTITLED TO VETERANS' BENEFITS BECAUSE THEY DID NOT SERVE DURING A DECLARED WAR.

THE HIGH CASUALTIES OF THE UNDECLARED VIETNAM WAR APPEAR TO HAVE SPARKED PASSAGE OF THE VETERANS' READJUSTMENT BENEFITS ACT OF 1966. OVERALL, THE BENEFIT LEVELS WERE LOWER THAN THOSE PROVIDED TO VETERANS WHO HAD SERVED DURING DECLARED WARS. FOR EXAMPLE, NO PROGRAM OF APPRENTICESHIP OR ON-THE -JOB TRAINING WAS PROVIDED TO VIETNAM VETERANS. A YEAR LATER CONGRESS WENT FURTHER IN THE VETERANS' PENSION AND READJUSTMENT ACT OF 1967 BY PROVIDING COLD WAR VETERANS WITH BENEFITS EQUIVALENT TO THOSE PROVIDED TO VETERANS WHO SERVED DURING DECLARED WARS. THESE BENEFITS INCLUDED APPRENTICESHIP AND ON-THE-JOB TRAINING.

THE REPORT DRAFT STATES THAT CONGRESS' INTENT IN PASSING THE APPRENTICESHIP AND ON-THE-JOB TRAINING PROGRAM IS UNCLEAR. IT IS TRUE THAT LITTLE IS SPECIFICALLY WRITTEN ABOUT THE PURPOSE OF THESE PROGRAMS. HOWEVER, BASED ON GENERAL COMMENTS BY SUPPORTERS, AND GIVEN THE MANNER IN WHICH CONGRESS INTERTWINED THE STATUTES PROVIDING APPRENTICESHIP AND ON- THE-JOB TRAINING WITH OTHER EDUCATIONAL PROGRAMS, WE THINK IT IS FAIR TO SAY THAT AN IMPORTANT REASON FOR PROVIDING THE EMPLOYMENT TRAINING ASSISTANCE PROGRAMS WAS TO PROVIDE AN EQUIVALENT SUBSTITUTE FOR VETERANS WHO WISHED TO WORK IN SKILLED JOB POSITIONS WITHOUT GOING TO COLLEGE. SENATOR YARBOROUGH EXPLAINED IN THE SENATE ON JUNE 1, 1967;

"ON-THE-JOB, ON-THE-FARM AND FLIGHT TRAINING AS OFFERED UNDER THE KOREAN GI BILL ARE AUTHORIZED BY OUR BILL. PERHAPS 50,000 OR MORE VETERANS EACH YEAR WILL THUS BE ADDED TO THOSE RECEIVING TRAINING UNDER THE COLD WAR GI BILL BY ADOPTION OF THESE PROVISIONS. THESE PROVISIONS ARE VERY IMPORTANT TO MAKE THIS SOMETHING OTHER THAN A COLLEGE-ONLY PROGRAM; THEY RECOGNIZE THAT MANY VETERANS WILL FIND OTHER GOALS AND CAREERS." 113 CONG.REC. 14463 (1967).

II. RESPONSE TO SPECIFIC QUESTIONS

YOU INQUIRED AS TO THE MEANING OF THE TERM "REGULAR PERIODIC INCREMENTS" AS USED IN 38 U.S.C. SEC. 1777(B)(1)(1976). YOU ALSO ASKED WHETHER IT IS PROPER FOR A VETERAN TO RECEIVE MORE THAN 85 PERCENT OF THE WAGES PAID FOR THE JOB AT THE BEGINNING OF HIS TRAINING. SECTION 1777(B)(1) STATES THAT

"(1) THE WAGES TO BE PAID THE ELIGIBLE VETERAN OR PERSON (A) UPON ENTRANCE INTO TRAINING, ARE NOT LESS THAN WAGES PAID NONVETERANS IN THE SAME TRAINING POSITION AND ARE AT LEAST 50 PER CENTUM OF THE WAGES PAID FOR THE JOB FOR WHICH THE VETERAN OR PERSON IS TO BE TRAINED, AND

(B) SUCH WAGES WILL BE INCREASED IN REGULAR PERIODIC INCREMENTS UNTIL, NOT LATER THAN THE LAST FULL MONTH OF THE TRAINING PERIOD, THEY WILL BE AT LEAST 85 PER CENTUM OF THE WAGES PAID FOR THE JOB FOR WHICH SUCH ELIGIBLE VETERAN OR PERSON IS BEING TRAINED ***."

YOU POINT OUT THAT INSOFAR AS THE LEGISLATION REDUCES THE AMOUNT OF VA TRAINING ASSISTANCE EVERY 6 MONTHS DURING THE FIRST 2 YEARS, IT IS LIKELY THAT CONGRESS INTENDED THAT WAGES SHOULD BE INCREASING IN CORRESPONDENCE WITH SKILL INCREASE. THIS INTERPRETATION IS CERTAINLY REASONABLE. HOWEVER, THERE IS NOTHING IN THE LEGISLATIVE HISTORY THAT WOULD INDICATE PRECISELY HOW MANY INCREASES CONGRESS CONSIDERED NECESSARY TO CONSTITUTE "REGULAR PERIODIC INCREASES." INSOFAR AS THE PERCENTAGE PAID TO THE VETERAN IS CONCERNED, 38 U.S.C. SEC. 1777(B)(1) REQUIRES THAT AT LEAST 85 PERCENT OF THE WAGES PAID FOR THE JOB SHALL BE PAID NOT LATER THAN THE LAST FULL MONTH OF THE TRAINING PERIOD. IT DOES NOT PRECLUDE PAYMENT OF MORE THAN 85 PERCENT OR PAYMENT EARLIER THAN THE LAST FULL MONTH. CONSEQUENTLY, THE PAYMENT OF MORE THAN 85 PERCENT AT THE BEGINNING OF THE TRAINING PERIOD DOES NOT VIOLATE 38 U.S.C. SEC. 1777(B)(1).

YOU HAVE INDICATED THAT THE TRAINING ASSISTANCE PROGRAMS (PARTICULARLY APPRENTICESHIP TRAINING) ARE RESULTING IN THE VETERANS IN THE PROGRAMS RECEIVING VERY HIGH INCOMES BECAUSE VA DOES NOT CONSIDER THE LEVEL OF WAGES THAT THE JOB PAYS TO THE VETERAN. THIS RESULTS IN THE VETERAN RECEIVING MORE IN COMBINED INCOME (TRAINING ASSISTANCE PLUS WAGES) THAN HE/SHE WOULD WITHOUT THE TRAINING ASSISTANCE PAYMENTS. YOU WISH TO CHARACTERIZE THIS AS AN UNACCEPTABLE SITUATION. YOUR CHARACTERIZATION MAY BE CORRECT; HOWEVER, THESE PAYMENTS ARE NOT CONTRARY TO THE LAW AND ANY CRITICISM OF THE SITUATION SHOULD CLEARLY MAKE THIS POINT. THE TRAINING ASSISTANCE PROGRAM FOR KOREAN VETERANS INCLUDED AN INCOME CEILING. CONGRESS REMOVED THIS CEILING IN THE TRAINING ASSISTANCE PROGRAMS AUTHORIZED BY THE VETERANS' PENSION AND READJUSTMENT ACT OF 1967. CONGRESSMAN TEAGUE, THEN CHAIRMAN OF THE HOUSE COMMITTEE ON VETERANS AFFAIRS, INDICATED THAT IT WAS THE PURPOSE OF THE LEGISLATION TO PAY ALL VETERANS EQUAL BENEFITS, WITHOUT REGARD TO AMOUNTS PAID BY THE EMPLOYER. AS EXPLAINED BY CONGRESSMAN TEAGUE ON AUGUST 17, 1967:

"THE BILL AGREED TO BY THE CONFEREES EXTENDS AN ON JOB AND APPRENTICE TRAINING PROGRAM TO VETERANS SERVING AFTER JANUARY 31, 1955, SIMILAR TO THE ONE AVAILABLE TO WORLD WAR II AND KOREAN VETERANS. WE HAVE MADE ONE CHANGE, HOWEVER. UNDER THE WORLD WAR II AND KOREA PROGRAMS THE EDUCATION AND TRAINING ALLOWANCE PAID TO THE VETERAN WAS GEARED DIRECTLY TO THE WAGE SCALE PAID BY THE EMPLOYER.

THIS CAUSED CONSIDERABLE VARIATION BETWEEN VETERANS TRAINING FOR THE SAME JOB AND CREATED AN INCENTIVE FOR THE EMPLOYER TO PAY THE LEAST HE COULD SO THE VETERANS' ADMINISTRATION WOULD PAY A GREATER AMOUNT FOR LONGER PERIODS OF TIME.

"TO ELIMINATE THE INCENTIVE OF SUBSIDIZED WAGES, THE CONFEREES SUBSTITUTED A STANDARD PAY SCALE BASED ON A 24-MONTH PROGRAM AS FOLLOWS: $80 FOR THE FIRST 6 MONTHS, $60 FOR THE NEXT 6 MONTHS, $40 FOR THE THIRD 6 MONTHS, AND $20 FOR THE FOURTH 6 MONTHS, AND SUCCEEDING PERIODS. THIS CHANGE WILL ASSURE MORE UNIFORM SUPPORT FOR VETERANS TRAINING AND WILL PERMIT SUPPORT OF APPRENTICE TRAINING IN OCCUPATIONS WHERE THE BEGINNING RATE IS QUITE HIGH AND WOULD EXCEED THE CEILING OF $450 PER MONTH SET IN THE SENATE AMENDMENT. 113 CONG.REC. H23143, 23144 (1967).

YOU HAVE ASKED WHETHER JOBS INVOLVING "BASIC TASKS" COULD BE APPROVED FOR ON-THE-JOB TRAINING PROGRAMS. ASSUMING THAT "BASIC TASKS" ARE SKILLS THAT REQUIRE LITTLE TRAINING, THE ANSWER IS "NO."

THE LEGISLATIVE HISTORY OF THE VETERANS' PENSION AND READJUSTMENT ACT OF 1967 INDICATES THAT CONGRESS DID NOT INTEND BASIC SKILL JOBS TO BE INCLUDED IN THE ON-THE-JOB TRAINING PROGRAM. THE BILL WHICH ORIGINALLY PASSED THE HOUSE DID NOT INCLUDE TRAINING ASSISTANCE. THE CONFERENCE REPORT STATES THAT THE HOUSE MANAGERS FELT THAT "IN LIGHT OF EXPERIENCE UNDER THE KOREAN CONFLICT EDUCATIONAL ASSISTANCE PROGRAM AND BECAUSE OF CHANGED CIRCUMSTANCES MODIFICATIONS IN THE SENATE PROVISIONS WERE IMPERATIVE." H.R.REP. NO. 554, 90TH CONG., 1ST SESS. 22 (1967). APPEARS THAT ONE OF THE CONCERNS WAS THAT THE KOREAN WAR PROGRAM OFFERED JOBS THAT WERE NOT HIGHLY SKILLED AND HAD THE ATTRIBUTES OF A WAGE SUBSIDY. THE SENATE BILL'S VERSION OF THE TRAINING ASSISTANCE PROGRAM WAS COMPLETELY REWRITTEN AND THE FOLLOWING STATEMENT INCLUDED IN THE CONFERENCE REPORT:

"IN ENACTING THE NEW PROGRAM OF ON-JOB TRAINING, THE CONFEREES WISH TO MAKE IT CLEAR THAT IT IS THEIR INTENT THAT THE STATE APPROVING AGENCIES APPROVE TRAINING ONLY IN THOSE FIELDS THAT OFFER WORTHWHILE KNOWLEDGE AND SKILLS ORDINARILY OBTAINED THROUGH THE EDUCATIONAL PROCESS LEADING TO AN ACCEPTED TRAINING OBJECTIVE AND WHICH WILL NOT HAVE THE ATTRIBUTES OF A WAGE SUBSIDY.

"TRAINING FOR OCCUPATIONS WHICH REQUIRE A RELATIVELY SHORT PERIOD OF EXPERIENCE IN ORDER FOR A TRAINEE TO OBTAIN AND HOLD EMPLOYMENT AT THE MARKET WAGE IN THE OCCUPATION, SUCH AS AUTOMOBILE SERVICE STATION ATTENDANT OR MANAGER, SODA FOUNTAIN ATTENDANT, FOOD SERVICE WORKER, SALESMAN, WINDOW WASHER, BUILDING CUSTODIAN, OR OTHER UNSKILLED OR COMMON LABOR POSITIONS, AS WELL AS CLERICAL POSITIONS FOR WHICH ON-THE-JOB TRAINING IS NOT THE NORMAL METHOD OF PROCURING QUALIFIED PERSONNEL, SHOULD NOT BE APPROVED. H.R.REP. NO. 554, 90TH CONG., 1ST SESS. 23 (1967).

AMONG THE PROVISIONS ADDED WAS A REQUIREMENT THAT "NO COURSE OF TRAINING WILL BE CONSIDERED BONA FIDE IF GIVEN TO AN ELIGIBLE VETERAN OR PERSON WHO IS ALREADY QUALIFIED BY TRAINING OR EXPERIENCE FOR THE JOB." 38 U.S.C. 1777(C)(7). THE CONFEREES ALSO INCREASED THE MINIMUM PERIOD OF TRAINING THAT APPROVED JOBS CUSTOMARILY REQUIRE FROM 3 TO 6 MONTHS. 38 U.S.C. SEC. 1777(C)(2).

IT APPEARS THAT CONGRESSMAN TEAGUE WAS ONE OF THE HOUSE MANAGERS WHO WAS DISSATISFIED WITH THE OPERATION OF THE TRAINING ASSISTANCE PROVIDED TO THE KOREAN VETERANS. ACCORDING TO YOUR RESEARCH, CONGRESSMAN TEAGUE ISSUED A REPORT IN 1952 THAT EXPRESSED DISSATISFACTION WITH THE MANNER IN WHICH THE PROGRAM APPROVED UNSKILLED OR SEMI-SKILLED OCCUPATIONS IN WHICH LITTLE OR NO TRAINING WAS REQUIRED. IN STATEMENTS BEFORE THE HOUSE ON AUGUST 17, 1967, CONGRESSMEN TEAGUE AND ADAIR INDICATED HOW THE CONFERENCE COMMITTEE HAD MODIFIED THE TRAINING ASSISTANCE PROVISIONS IN AN ATTEMPT TO AVOID THE PROBLEMS IN THE KOREAN PROGRAM:

"WE HAVE ALSO WRITTEN IN SPECIFIC LANGUAGE PROHIBITING TRAINING IN OCCUPATIONS WHICH REQUIRE LITTLE TRAINING. *** (MR. TEAGUE)

"APPRENTICESHIP OR OTHER ON-JOB TRAINING IS ALSO AUTHORIZED BY THE BILL. SAFEGUARDS HAVE BEEN INCLUDED TO PROVIDE APPROVED TRAINING ONLY IN FIELDS THAT OFFER WORTHWHILE KNOWLEDGE AND SKILLS LEADING TO AN ACCEPTABLE TRAINING OBJECTIVE AND WHICH WILL NOT HAVE THE ATTRIBUTES OF A WAGE SUBSIDY." 113 CONG.REC. 23144-45 (1967). (MR. ADAIR)

FINALLY, YOU ASKED WHETHER A VETERAN MAY LEGALLY RECEIVE A COMBINATION OF APPRENTICESHIP, ON-THE-JOB TRAINING AND OTHER EDUCATIONAL ASSISTANCE. THE ANSWER IS "YES." SECTION 1795(A) PROVIDES THAT:

"(A) THE AGGREGATE PERIOD FOR WHICH ANY PERSON MAY RECEIVE ASSISTANCE UNDER TWO OR MORE OF THE LAWS LISTED BELOW -

"(1) PARTS VII OR VIII, VETERANS REGULATION NUMBERED 1(A), AS AMENDED;

"(2) TITLE II OF THE VETERANS' READJUSTMENT ASSISTANCE ACT OF 1952;

"(3) THE WAR ORPHANS' EDUCATIONAL ASSISTANCE ACT OF 1956;

"(4) CHAPTERS 32, 34, 35, AND 36 OF THIS TITLE (38 U.S.C. SECS. 1601 ET SEQ., 1651 ET SEQ., 1700 ET SEQ., AND 1770 ET SEQ.) AND THE FORMER CHAPTER 33; MAY NOT EXCEED FORTY-EIGHT MONTHS (OR THE PART TIME EQUIVALENT THEREOF)."

THIS SECTION PERMITS A COMBINATION OF ASSISTANCE UNDER VETERAN ASSISTANCE PROGRAMS, INCLUDING THOSE PROVIDED IN CHAPTER 34 (VETERANS' EDUCATIONAL ASSISTANCE, 38 U.S.C. SEC. 1651 ET SEQ.) AND CHAPTER 36 (ADMINISTRATION OF EDUCATIONAL BENEFITS, 38 U.S.C. SEC. 1770 ET SEQ.) SINCE THE APPLICABLE STATUTES GOVERNING APPRENTICESHIP, ON-THE-JOB TRAINING, AND OTHER EDUCATIONAL ASSISTANCE PROGRAMS ARE CONTAINED IN CHAPTERS 34 AND 36, AN ELIGIBLE VETERAN MAY RECEIVE COMBINED ASSISTANCE UNDER THESE PROGRAMS. HOWEVER, 38 U.S.C. SEC. 1795(A) ALSO LIMITS THAT THE AGGREGATE PERIOD FOR WHICH ASSISTANCE MAY BE RECEIVED UNDER TWO OR MORE OF THESE PROGRAMS TO 48 MONTHS OR THE PART-TIME EQUIVALENT THEREOF.