[House Report 111-99]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-99
======================================================================
BELATED THANK YOU TO THE MERCHANT MARINERS OF WORLD WAR II ACT OF 2009
_______
May 7, 2009.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Filner, from the Committee on Veterans' Affairs, submitted the
following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 23]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 23) to amend title 38, United States Code, to
direct the Secretary of Veterans Affairs to establish the
Merchant Mariner Equity Compensation Fund to provide benefits
to certain individuals who served in the United States merchant
marine (including the Army Transport Service and the Naval
Transport Service) during World War II, having considered the
same, report favorably thereon with an amendment and recommend
that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 3
Committee Consideration.......................................... 7
Committee Votes.................................................. 7
Committee Oversight Findings..................................... 8
Statement of General Performance Goals and Objectives............ 8
New Budget Authority, Entitlement Authority, and Tax Expenditures 8
Earmarks and Tax and Tariff Benefits............................. 8
Committee Cost Estimate.......................................... 8
Congressional Budget Office Estimate............................. 8
Federal Mandates Statement....................................... 10
Advisory Committee Statement..................................... 10
Constitutional Authority Statement............................... 10
Applicability to Legislative Branch.............................. 10
Section-by-Section Analysis of the Legislation................... 10
Changes in Existing Law Made by the Bill as Reported............. 11
Additional Views................................................. 14
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Belated Thank You to the Merchant
Mariners of World War II Act of 2009''.
SEC. 2. PAYMENTS TO INDIVIDUALS WHO SERVED DURING WORLD WAR II IN THE
UNITED STATES MERCHANT MARINE.
(a) Establishment of Compensation Fund.--Subchapter II of chapter 5
of title 38, United States Code, is amended by adding at the end the
following new section:
``Sec. 533. Merchant Mariner Equity Compensation Fund
``(a) Compensation Fund.--(1) There is in the general fund of the
Treasury a fund to be known as the `Merchant Mariner Equity
Compensation Fund' (in this section referred to as the `compensation
fund').
``(2) Subject to the availability of appropriations for such purpose,
amounts in the compensation fund shall be available to the Secretary
without fiscal year limitation to make payments to eligible individuals
in accordance with this section.
``(b) Eligible Individuals.--(1) An eligible individual is an
individual who--
``(A) during the one-year period beginning on the date of the
enactment of the Belated Thank You to the Merchant Mariners of
World War II Act of 2009, submits to the Secretary an
application containing such information and assurances as the
Secretary may require;
``(B) has not received benefits under the Servicemen's
Readjustment Act of 1944 (Public Law 78-346); and
``(C) has engaged in qualified service.
``(2) For purposes of paragraph (1), a person has engaged in
qualified service if, between December 7, 1941, and December 31, 1946,
the person--
``(A) was a member of the United States merchant marine
(including the Army Transport Service and the Naval Transport
Service) serving as a crewmember of a vessel that was--
``(i) operated by the War Shipping Administration or
the Office of Defense Transportation (or an agent of
the Administration or Office);
``(ii) operated in waters other than inland waters,
the Great Lakes, and other lakes, bays, and harbors of
the United States;
``(iii) under contract or charter to, or property of,
the Government of the United States; and
``(iv) serving the Armed Forces; and
``(B) while so serving, was licensed or otherwise documented
for service as a crewmember of such a vessel by an officer or
employee of the United States authorized to license or document
the person for such service.
``(c) Amount of Payments.--The Secretary shall make a monthly payment
out of the compensation fund in the amount of $1,000 to an eligible
individual. The Secretary shall make such payments to eligible
individuals in the order in which the Secretary receives the
applications of the eligible individuals.
``(d) Authorization of Appropriations.--(1) There are authorized to
be appropriated to the compensation fund amounts as follows:
``(A) For fiscal year 2010, $120,000,000.
``(B) For fiscal year 2011, $108,000,000.
``(C) For fiscal year 2012, $97,000,000.
``(D) For fiscal year 2013, $85,000,000.
``(E) For fiscal year 2014, $75,000,000.
``(2) Funds appropriated to carry out this section shall remain
available until expended.
``(e) Reports.--The Secretary shall include, in documents submitted
to Congress by the Secretary in support of the President's budget for
each fiscal year, detailed information on the operation of the
compensation fund, including the number of applicants, the number of
eligible individuals receiving benefits, the amounts paid out of the
compensation fund, the administration of the compensation fund, and an
estimate of the amounts necessary to fully fund the compensation fund
for that fiscal year and each of the three subsequent fiscal years.
``(f) Regulations.--The Secretary shall prescribe regulations to
carry out this section.''.
(b) Regulations.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall prescribe the regulations
required under section 532(f) of title 38, United States Code, as added
by subsection (a).
(c) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item related to section
532 the following new item:
``533. Merchant Mariner Equity Compensation Fund.''.
Purpose and Summary
H.R. 23 was introduced on January 6, 2009, by
Representative Bob Filner of California, Chairman of the
Committee on Veterans' Affairs. H.R. 23, as amended, would
establish the Merchant Mariner Equity Compensation Fund to
provide benefits, subject to the availability of
appropriations, to certain individuals who served in the United
States merchant marine (including the Army Transport Service
and the Naval Transport Service) during World War II.
H.R. 23, as amended, would direct the Secretary of Veterans
Affairs to pay a monthly benefit of $1,000 to qualifying
honorably-discharged individuals of the United States merchant
marine (including members of the Army Transport Service and the
Naval Transport Service) who served between December 7, 1941,
and December 31, 1946.
Background and Need for Legislation
The merchant marine was the nation's first navy and
assisted the Continental Army in defeating the British during
the Revolutionary War. Since 1775, the merchant marine has
served in peace and in every war. After the terrorist attacks
of September 11, 2001, 29 merchant marine academy students
operated a fleet of boats in New York Harbor, transporting
firefighters and other emergency equipment workers, medical
supplies and food. Today, more than 8,000 mariners serve in the
Military Sealift Command, most of them working in support of
Operation Iraqi Freedom. The merchant mariners are also
recognized at the World War II Memorial. The United States
Merchant Marine Academy is the only one of our five military
academies that sends its cadets into war--142 of these cadets
perished during WWII. Current estimates of the surviving
merchant mariners of WWII range from 10,000 to 16,000. The
Committee adopted the 10,000 figure.
The merchant mariners of World War II were a volunteer,
civilian military corps that served honorably in combat during
the war, but were denied veterans' benefits for their service
until 1988 after a successful court challenge. By most reports,
the World War II merchant marine suffered the greatest
casualties of any of the fighting branches--with nearly one-in-
26 dying in battle. By comparison, the death rate for the U.S.
Marine Corps was one-in-33, in the Army, one-in-48, in the
Navy, one-in-114, and in the Coast Guard one-in-421. Before the
Japanese attack on Pearl Harbor, more than 240 mariners had
already perished.
Historical analysis
In 1936, the Merchant Marine Act was enacted (Public Law
74-835) to rebuild our nation's merchant marine which had
decreased significantly after World War I. Title I of the
Merchant Marine Act stated as a ``Declaration of Policy'' that
the United States ``shall have a merchant marine * * * capable
of serving as a naval and military auxiliary in time of war or
national emergency[.]'' Also in 1936, President Roosevelt
created the U.S. Maritime Commission to oversee the rebuilding
of this fleet. The U.S. Maritime Service (USMS), the training
arm established in 1938, built up the number of merchant
mariners from the pre-war strength of 55,000 to 250,000 men at
the end of World War II. In addition, President Roosevelt
established maritime training facilities; the first at
Sheepshead Bay, New York, and also in 1942, the United States
Merchant Marine Academy at Kings Point, New York. These
facilities trained well over 150,000 mariners. In February
1942, the U.S. War Shipping Administration (WSA), as an
emergency wartime agency, took control of the purchasing,
chartering, requisition and operation of commercial shipping
vessels. Generally, only the day-to-day operations were the
responsibility of the private shipping lines. As emergency
construction began to replace wartime losses, the new ships
were allocated among the private companies. The companies were
paid fixed fees in addition to the charter rates for their
ships. The WSA assumed all operating responsibilities and
insurance liability for war-risk losses.
With the quick buildup of the Liberty ship cargo fleet, the
country desperately needed people to man them. The merchant
marine fleet rapidly grew from a few hundred to thousands of
ships. A Liberty ship was considered successful if it made one
voyage with war materiel. These ships were produced with
amazing speed, most within eight weeks, some in as short as a
week. They were not meant to be indispensable. Because of their
bulkiness, they were also very slow and became easy targets for
enemy air and water attacks. The U.S. plan became to build the
ships faster than the enemy could sink them.
The WSA played an active role in the recruitment and
training of World War II merchant mariners. As the parent
agency, it organized three subsidiary units to deal with
manpower issues: the Recruitment and Manning Organization; the
Training Organization; and, the Maritime Labor Relations
Organizations. Many of the mariners belonged to a union and
were covered by collective bargaining agreements with the
private shipping companies. This relationship was completely
reorganized by the WSA in 1942 and various agreements were
reached to maintain existing arrangements. While at war, the
WSA, through the Maritime Labor Relations Organizations, worked
with both the operators and unions in establishing a uniform
scale and working conditions aboard WSA ships. Merchant
mariners of World War II were recruited, trained in gunnery,
and received health care treatment, life insurance and
compensation (although indirectly) from the Federal government.
Throughout World War II, all merchant mariners were under the
auspices and control of the WSA.
Thirty-seven official government USMS recruiting offices
were established around the country with many offices located
next to Navy and Coast Guard offices. Merchant mariners were
not subject to the draft as long as they did not leave the
service of any ship for longer than 30 days. According to
testimony presented during the full Committee hearing on H.R.
23, in the 110th Congress, many of these men were steered from
the uniformed branches and ordered to join the merchant marine
because, reportedly, they were told by recruiters ``that's
where our country needs you.'' The merchant marine worked some
of the most perilous jobs during the war and their ships and
crews were on the front lines of battle. Compared to the large
number of men and women serving in World War II, the numbers of
the merchant marine were small, but their chance of dying
during service was extremely high, as it took anywhere from
eight to 15 tons of supplies to support one soldier for one
year at the front.
On December 29, 1940, President Roosevelt delivered his
``Arsenal of Democracy'' speech, indicating that he would
deploy ships with supplies to help Great Britain. In 1941,
Germany, in an attempt to isolate supplies to England, deployed
its U-boats to the Atlantic. The U-boats, singly and in ``wolf
packs,'' sank or damaged many ships crossing the Atlantic with
supplies, but also found prime targets in the ships off the
U.S. Coast from Maine to Florida, where merchant marine ships
operated without military escort or convoy. Germany was also
successful in curtailing merchant marine ships bringing
petroleum and supplies through the Caribbean Sea and the Gulf
of Mexico. In the first six months of 1942, German U-boats sank
more than 400 merchant marine ships, more ships than had been
built. Between 1941 and 1944, enemy forces sank more than 800
ships. About 600 mariners were prisoners of war and another
11,000 were injured.
With regard to pay, the average merchant mariner was paid
on par with average Navy seaman as confirmed by Navy reports.
Unlike the other servicemembers, merchant mariners were only
paid when they were working on a ship. They received no
vacation, sick or dock pay, and were not paid when their ships
were torpedoed and sank, when they were on life boats, when
injured, maimed, or when they became POWs. They were also
subject to income tax and Victory Tax, from which the uniformed
branches were exempt. Most families received just $5,000 from
the WSA when the mariner died in combat. Merchant mariners were
also eligible for bonuses, but evidence indicates that during
the war these were inconsistent and intermittent. According to
the Congressional Research Service in a report entitled
``Veterans Benefits: Merchant Seaman'' dated May 8, 2007, the
issue of pay comparability is ``extremely difficult'' to sort
out.
After the War
On June 22, 1944, President Roosevelt signed into public
law the Servicemen's Readjustment Act of 1944 (Public Law 78-
346). This act, commonly known as the ``GI Bill'' or ``GI Bill
of Rights'' gave members of the Armed Forces who served at
least 90 days anywhere geographically between December 7, 1941,
and December 31, 1946, unemployment benefits, unprecedented
education assistance, VA health care and counseling, housing
and small business loans as well. The vast and enduring
positive socio-economic effects of this final piece of New Deal
legislation are widely touted. It is reported by many scholars
that passage of this bill contributed to the country's ability
to avoid a post-war depression, to expand the reach of higher
education, and to build the middle class. When signing the GI
Bill, President Roosevelt stated ``I trust that Congress will
soon provide similar opportunities to members of the merchant
marine who have risked their lives time and time again during
war for the welfare of their country.''
Efforts in Congress to extend the benefits of the 1944 GI
Bill of Rights, primarily through the Merchant Mariner
Readjustment Act (H.R. 2346, 79th Congress), failed in
Committee, due mostly to pressure and opposition from the
uniformed branches and the veterans service organizations. As a
result, the merchant mariners of World War II did not receive
any of the benefits of the 1944 GI Bill.
The effort to attain veteran status resurfaced after many
years of denial by the Civilian Military Service Review Board
(that determined active duty services for the purposes of
veterans benefits), when in 1988, three merchant mariners
including Stanley Willner, who testified during the full
Committee hearing held during the 110th Congress on April 18,
2007, successfully sued for veteran status for the merchant
mariners of World War II.\1\ Accordingly, on January 19, 1988,
in adherence to the Schumacher decision, the merchant mariners
who served between December 7, 1941, and August 15, 1945,
attained veteran status. At that point, over 40 years later,
the education benefits had expired and over 125,000 merchant
mariners had died.
---------------------------------------------------------------------------
\1\Schumacher, Willner et al. v. Secretary of the Air Force Edward
C. Aldridge, Jr., 665 F. Supp. 41 (D.D.C. 1987).
---------------------------------------------------------------------------
The Secretary of the Air Force, who headed the Civilian
Military Service Review Board, established the cut-off date for
qualifying service of merchant mariners as August 15, 1945,
although the official end of the war was December 31, 1946, for
members of the Armed Forces. This move denied a few thousand
mariners veteran's benefits. In 1998, President William J.
Clinton signed into law the ``Veterans Programs Enhancement Act
of 1998'' (Public Law 105-368) that gave mariners who served
from August 15, 1945, to December 31, 1946, limited veterans
benefits. However, these men received certificates, not
honorable discharges, and their service is not considered
active duty for the purposes of receipt of VA benefits.
H.R. 23 seeks to rectify the lost benefits sustained by all
of the merchant mariners of World War II, who served from
December 7, 1941, through December 31, 1946, by providing a
$1,000 monthly payment, subject to the availability of
appropriations, to qualifying living merchant mariners
(including qualifying individuals of the Army Transport and
Naval Transportation Service who were civilian sealift
personnel), subject to the availability of appropriations.
Hearings
No hearings were held on H.R. 23 in the 111th Congress. A
hearing was held in the 110th Congress pursuant to reporting
similar legislation to the House of Representatives where that
measure was agreed to on July 30, 2007, by voice vote.
Committee Consideration
On May 6, 2009, the full Committee met in an open markup
session, a quorum being present, and ordered H.R. 23, as
amended, reported favorably to the House of Representatives, by
voice vote. During consideration of the bill the following
amendments were considered:
An amendment in the nature of a substitute, offered by Mr.
Filner of California to make certain technical changes to H.R.
23, as introduced, was agreed to by voice vote.
An amendment by Mr. Buyer of Indiana to the amendment in
the nature of a substitute to change the name of the
compensation fund and to include, for purposes of compensation,
individuals whose service has been determined to have been
active duty service pursuant to section 1401 of the GI Bill
improvement Act of 1977 was not agreed to by a record vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report the legislation and amendments thereto.
An amendment in the nature of a substitute offered by Mr.
Filner was agreed to by voice vote. A motion by Mr. Teague of
New Mexico to order H.R. 23, as amended, reported favorably to
the House of Representatives was agreed to by voice vote.
An amendment by Mr. Buyer of Indiana was not agreed to by a
record vote of 14 yeas and 15 nays. The names of Members voting
for and against follow:
------------------------------------------------------------------------
NAME YEA NAY PRESENT
------------------------------------------------------------------------
Mr. Filner............................... ........ X
Mr. Buyer................................ X
Ms. Brown................................ ........ X
Mr. Stearns.............................. X
Mr. Snyder............................... X
Mr. Moran................................ X
Mr. Michaud.............................. ........ X
Mr. Brown................................ X
Ms. Herseth Sandlin...................... X
Mr. Miller............................... X
Mr. Mitchell............................. ........ X
Mr. Boozman.............................. X
Mr. Hall................................. ........ X
Mr. Bilbray.............................. X
Mrs. Halvorson........................... ........ X
Mr. Lamborn.............................. X
Mr. Perriello............................ ........ X
Mr. Bilirakis............................ X
Mr. Teague............................... ........ X
Mr. Buchanan............................. X
Mr. Rodriguez............................ ........ X
Mr. Roe.................................. X
Mr. Donnelly............................. X
Mr. McNerney............................. ........ X
Mr. Space................................ ........ X
Mr. Walz................................. ........ X
Mr. Adler................................ ........ X
Mrs. Kirkpatrick......................... ........ X
Mr. Nye.................................. X
Total................................ 14 15
------------------------------------------------------------------------
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 23 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e), or 9(f) of rule XXI of the Rules of the
House of Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
23 prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 23 provided by the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 7, 2009.
Hon. Bob Filner,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 23, the Belated
Thank You to the Merchant Mariners of World War II Act of 2009.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Dwayne M.
Wright.
Sincerely,
Peter H. Fontaine
(For Douglas W. Elmendorf, Director).
Enclosure.
H.R. 23--Belated Thank You to the Merchant Mariners of World War II Act
of 2009
Summary: H.R. 23 would make certain individuals who served
as merchant mariners for the United States during World War II
eligible for a monthly payment from the Department of Veterans
Affairs (VA) and would require VA to prepare an annual report
on the status of the new benefit program. CBO estimates that
implementing H.R. 23 would cost $113 million in 2010 and $438
million over the 2010-2014 period, assuming appropriation of
the authorized amounts. Enacting the bill would not affect
direct spending or receipts.
H.R. 23 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 23 is shown in the following table.
The costs of this legislation fall within budget function 700
(veterans' benefits and services).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------
2010-
2010 2011 2012 2013 2014 2014
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level....................................... 120 108 97 85 75 485
Estimated Outlays......................................... 113 99 87 75 64 438
----------------------------------------------------------------------------------------------------------------
For this estimate, CBO assumes that H.R. 23 will be enacted
near the beginning of fiscal year 2010 and that the specified
amounts will be appropriated near the start of each fiscal
year.
Basis of estimate: H.R. 23 would entitle certain
individuals who served with the U.S. Merchant Marine during
World War II to a monthly benefit of $1,000, subject to the
availability of funds provided for that purpose. To be eligible
for the benefit, individuals would need to apply within a year
of the bill's enactment and demonstrate that they served as a
merchant marine between December 7, 1941, and December 31,
1946, on a vessel that was:
Operated by the War Shipping Administration
or the Office of Defense Transportation;
Operated in waters other than inland waters,
the Great Lakes, and other lakes, bays, and harbors of
the United States;
Under contract or charter to, or property of
the government of the United States; and
Serving the armed forces.
H.R. 23 would establish the Merchant Mariner Equity
Compensation Fund. Amounts in the fund would be used to pay the
monthly benefit to eligible individuals, on a first-come,
first-served basis. The bill would specifically authorize the
appropriation for each year as shown in the table.
Based on information from VA on the number of merchant
mariners that served during the specified period, their average
age, and on mortality rates from the Department of Defense
(DoD), CBO estimates that, in 2010, about 38,000 merchant
mariners would have the requisite service to qualify for the
benefit. We estimate that one-quarter of them, about 9,500,
would apply for the benefit. The amounts authorized in H.R. 23
would allow 10,000 merchant mariners to receive the monthly
benefit in 2010. Therefore, CBO estimates that all of the
applicants would receive the full benefit in 2010, assuming the
authorized amount is appropriated.
Using the DoD mortality rates, CBO estimates that the
amounts authorized for 2011 through 2014, if appropriated,
would be sufficient to continue providing monthly payments to
surviving beneficiaries.
Intergovernmental and private-sector impact: H.R. 23
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal costs: Dwayne M. Wright;
Impact on state, local, and tribal governments: Lisa Ramirez-
Branum; Impact on the private sector: Elizabeth Bass.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 23 prepared by the Director of the
Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
23.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for H.R. 23 is provided by Article I,
section 8 of the Constitution of the United States.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 would provide the short title of H.R. 23 as the
``Belated Thank You to the Merchant Mariners of World War II
Act of 2009.''
Section 2. Payments to individuals who served during World War II in
the United States merchant marine
This section allows for payments to individuals who served
during World War II in the United States merchant marine.
This section, by addition of a new section 533, would amend
subchapter II of chapter 5 of title 38, United States Code, to
establish a Merchant Mariner Equity Compensation Fund
(compensation fund) in the general fund of the Treasury.
This new section would make funds in the compensation fund,
which are subject to the availability of appropriations,
available to the Secretary of the VA to distribute payments to
eligible individuals without fiscal year limitation.
Subsection (b) of this new section would require eligible
individuals to submit applications with such information and
assurances as the VA may require within one year of enactment,
and would make ineligible those individuals who received
benefits under the Servicemen's Readjustment Act of 1944 (P.L.
78-346).
In addition, subsection (b) would require the Secretary to
recognize the qualifying service of those who served in the
United States merchant marine (including the Army Transport
Service and the Naval Transport Service) during the period of
December 7, 1941, and December 31, 1946. An individual has
engaged in qualifying service if between December 7, 1941, and
December 31, 1946, the eligible individual was a member of the
United States merchant marine (including the Army Transport
Service and the Naval Transport Service) serving as a
crewmember of a vessel that was operated by the War Shipping
Administration or the Office of Defense Transportation (or an
agent of the Administration or Office); operated in waters
other than inland waters, the Great Lakes, and other lakes,
bays, and harbors of the United States; under contract or
charter to, or property of, the Government of the United
States; serving the Armed Forces; and, while so serving, was
licensed or otherwise documented for service as a crewmember of
such a vessel by an officer or employee of the United States
authorized to license or document the person for service.
New subsection (c) would require the Secretary to make a
monthly payment of $1,000 out of the compensation fund to
eligible individuals in the order of receipt of applications.
New subsection (d) would authorize appropriations in the
amount of $120 million in FY 2010; $108 million in FY 2011; $97
million in FY 2012; $85 million in FY 2013; and $75 million in
FY 2014. This new subsection would also authorize that funds
appropriated under this new section remain available until
expended.
New subsection (e) would require the Secretary to submit a
report to Congress with the President's budget for each fiscal
year to contain information about the operation of the
compensation fund, including the number of applicants, the
number of eligible individuals receiving benefits, the amounts
paid out of and administration of the compensation fund and an
estimate of necessary amounts to fully fund the compensation
fund for that fiscal year and each of the three subsequent
fiscal years.
New subsection (f) would require the Secretary to issue
regulations 180 days after the date of enactment.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART I--GENERAL PROVISIONS
* * * * * * *
CHAPTER 5--AUTHORITY AND DUTIES OF THE SECRETARY
SUBCHAPTER I--GENERAL AUTHORITIES
Sec.
501. Rules and regulations.
* * * * * * *
SUBCHAPTER II--SPECIFIED FUNCTIONS
* * * * * * *
533. Merchant Mariner Equity Compensation Fund.
* * * * * * *
SUBCHAPTER II--SPECIFIED FUNCTIONS
* * * * * * *
Sec. 533. Merchant Mariner Equity Compensation Fund
(a) Compensation Fund.--(1) There is in the general fund of
the Treasury a fund to be known as the ``Merchant Mariner
Equity Compensation Fund'' (in this section referred to as the
``compensation fund'').
(2) Subject to the availability of appropriations for such
purpose, amounts in the compensation fund shall be available to
the Secretary without fiscal year limitation to make payments
to eligible individuals in accordance with this section.
(b) Eligible Individuals.--(1) An eligible individual is an
individual who--
(A) during the one-year period beginning on the date
of the enactment of the Belated Thank You to the
Merchant Mariners of World War II Act of 2009, submits
to the Secretary an application containing such
information and assurances as the Secretary may
require;
(B) has not received benefits under the Servicemen's
Readjustment Act of 1944 (Public Law 78-346); and
(C) has engaged in qualified service.
(2) For purposes of paragraph (1), a person has engaged in
qualified service if, between December 7, 1941, and December
31, 1946, the person--
(A) was a member of the United States merchant marine
(including the Army Transport Service and the Naval
Transport Service) serving as a crewmember of a vessel
that was--
(i) operated by the War Shipping
Administration or the Office of Defense
Transportation (or an agent of the
Administration or Office);
(ii) operated in waters other than inland
waters, the Great Lakes, and other lakes, bays,
and harbors of the United States;
(iii) under contract or charter to, or
property of, the Government of the United
States; and
(iv) serving the Armed Forces; and
(B) while so serving, was licensed or otherwise
documented for service as a crewmember of such a vessel
by an officer or employee of the United States
authorized to license or document the person for such
service.
(c) Amount of Payments.--The Secretary shall make a monthly
payment out of the compensation fund in the amount of $1,000 to
an eligible individual. The Secretary shall make such payments
to eligible individuals in the order in which the Secretary
receives the applications of the eligible individuals.
(d) Authorization of Appropriations.--(1) There are
authorized to be appropriated to the compensation fund amounts
as follows:
(A) For fiscal year 2010, $120,000,000.
(B) For fiscal year 2011, $108,000,000.
(C) For fiscal year 2012, $97,000,000.
(D) For fiscal year 2013, $85,000,000.
(E) For fiscal year 2014, $75,000,000.
(2) Funds appropriated to carry out this section shall remain
available until expended.
(e) Reports.--The Secretary shall include, in documents
submitted to Congress by the Secretary in support of the
President's budget for each fiscal year, detailed information
on the operation of the compensation fund, including the number
of applicants, the number of eligible individuals receiving
benefits, the amounts paid out of the compensation fund, the
administration of the compensation fund, and an estimate of the
amounts necessary to fully fund the compensation fund for that
fiscal year and each of the three subsequent fiscal years.
(f) Regulations.--The Secretary shall prescribe regulations
to carry out this section.
* * * * * * *
ADDITIONAL VIEWS OF HONORABLE STEVE BUYER
I continue to have reservations regarding this legislation.
H.R. 23, as amended, is similar to legislation passed by the
House in the 110th Congress. I believe that H.R. 23, as
amended, would set a poor precedent by awarding a $1,000
monthly payment to World War II Merchant Mariners. The
authorization described in the bill has no requirement for the
Merchant Mariner to have a disability or suffer from financial
hardship. Currently, the only veterans authorized to receive a
service pension are Medal of Honor recipients. Not even former
Prisoners of War receive such a pension.
Whether or not to grant an unprecedented new service
pension to World War II Merchant Mariners is not a question of
bravery or contributions to victory over the Axis in 1945.
Those questions have long been settled to the resounding credit
of the mariners who braved unspeakable dangers to transport
cargo that kept the Atlantic Alliance alive and fighting.
Most Merchant Mariners serving during World War II were
given veteran status under a system established by Congress in
the G.I. Bill Improvement Act of 1977, Public Law 95-202. This
process determined if civilian groups of World War II, like
most Merchant Mariners, should receive veteran status based on
their service during the war. This means that most of these
World War II Merchant Mariners are veterans and qualify for all
Department of Veterans Affairs (VA) benefits and services
including healthcare.
An objective and carefully researched report on the
contributions of Merchant Mariners during World War II, and
post-war benefits for which they were, eligible can be found in
the Congressional Research Service Report for Congress,
Veterans Benefits: Merchant Seamen, May 8, 2007 (Order Code:
RL33992: http://www.congress.gov/erp/rl/pdf/RL33992.pdf), by
Christine Scott and Douglas Reid Weimer.
Twenty eight other groups that provided military-related
service to the U.S. in World War II have received veteran
status in the same manner as the Merchant Mariners. However,
this bill ignores their service to the nation; it focuses only
on the service provided by Merchant Mariners who served during
that same period. These groups include the Women's Air Force
Service Pilots, the Women's Army Auxiliary Corps, the American
Volunteer Group know as ``The Flying Tigers'' and many others
who gained their status decades after their service. They
served loyally, selflessly, and courageously. Their service
contributed directly to victory in 1945. Yet this bill does
nothing for them.
During the full Committee markup of H.R. 23, I offered an
amendment that would include these groups, which was defeated
by a vote of 14 to 15. I have attached a list of the other
veteran groups that received veteran status under Public Law
95-202.
I also find the funding mechanism for this bill to be of
concern. When this bill was introduced in previous Congresses,
it was determined that because the benefit was an entitlement,
it was subject to PAYGO offset requirements. However, the
current bill uses a compensation fund to turn this entitlement
into discretionary spending. This side-steps budget rules and
places an unnecessary burden on the Appropriations Committees.
There is no current appropriations measure that would fund
this benefit. The Committee on Veterans' Affairs, which is
unable to identify the necessary PAYGO offsets to fund this
benefit, is simply passing the buck to the Appropriations
Committee. I do not believe this is a fiscally sound way to
legislate. Further, if insufficient funds were to be
appropriated, only some Merchant Mariners would receive the
benefit, while others would not.
I believe this legislation, though well-meaning, does not
make the best use of taxpayer dollars, and I fear that it will
have unintended consequences for future Congresses.
WORLD WAR II SERVICE BY PARTICULAR GROUPS
A number of groups who provided military-related service to
the United States can receive VA benefits. A discharge by the
Secretary of Defense is needed to qualify. Service in the
following groups has been certified as active military service
for benefits purposes:
RECOGNIZED GROUPS UNDER PUBLIC LAW 95-202
------------------------------------------------------------------------
Date of recognition Recognized group
------------------------------------------------------------------------
1 8 Mar 79................ Women's Air Force
Service Pilots (WASPs)
(WWII).
2 18 Mar 80............... Women's Army Auxiliary
Corps (WAAC) (WWII).
3 22 Jan 81............... Civilian Employees,
Pacific Naval Air
Bases, Who Actively
Participated in the
Defense of Wake Island
during WWII.
4 17 Jul 81............... Male Civilian Ferry
Pilots (WWII).
5 7 Apr 82................ Wake Island defenders
from Guam (WWII).
6 27 Dec 82............... Civilian Personnel
Assigned to the Secret
Intelligence Element of
the OSS (WWII).
7 10 May 83............... Guam Combat Patrol
(WWII).
8 7 Feb 84................ Quartermaster Corps
Keswick Crew on
Corregidor (WWII).
9 7 Feb 84................ U.S. Civilian Volunteers
Who Actively
Participated in the
Defense of Bataan
(WWII).
10 18 Oct 85............... U.S. Merchant Seamen Who
Served on Blockships in
Support of Operation
Mulberry in the World
War II invasion of
Normandy (WWII).
11 19 Jan 88............... American Merchant Marine
in Oceangoing Service
during the Period of
Armed Conflict,
December 7, 1941 to
August 15, 1945 (WWII).
12 2 Aug 88................ Civilian U.S. Navy IFF
Technicians Who Served
in the Combat Areas of
the Pacific during
World War II (December
7, 1941 to August 15,
1945) (WWII).
13 30 Aug 90............... U.S. Civilians of the
American Field Service
(AFS) Who Served
Overseas Under U.S.
Armies and U.S. Army
Groups in World War II
During the Period
December 7, 1941
through May 8, 1945
(WWII).
14 5 Oct 90................ U.S. Civilian Flight
Crew and Aviation
Ground Support
Employees of American
Airlines Who Served
Overseas as a result of
American Airlines'
Contract with Air
Transport Command
during the Period
December 14, 1941
through August 14, 1945
(WWII).
15 8 Apr 91................ Civilian Crewmen of the
United States Coast and
Geodetic Survey vessels
who performed their
service in areas of
immediate military
hazard while conducting
cooperative operations
with and for the United
States Armed Forces
within a time frame of
December 7, 1941 to
August 15, 1945 (WWII)
(Qualifying vessels
are: the Derickson,
Explorer, Gilber,
Hilgard, E. Lester
Jones, Lydonia Patton,
Surveyor, Wainwright,
Westdahl,
Oceanographer,
Hydrographer and
Pathfinder).
16 3 May 91................ Honorably Discharged
Members of the American
Volunteer Group (Flying
Tigers) Who Served
During the Period
December 7, 1941 to
July 18, 1942 (WWII).
17 12 May 92............... U.S. Civilian Flight
Crew and Aviation
Ground Support
Employees of United Air
Lines (UAL), Who Served
Overseas as a Result of
UAL's Contract With the
Air Transport Command
During the Period
December 14, 1941
through August 14, 1945
(WWII).
18 12 May 92............... U.S. Civilian Flight
Crew and Aviation
Ground Support
Employees of
Transcontinental and
Western Air (TWA),
Inc., Who Served
Overseas as a Result of
TWA's Contract with the
Air Transport Command
during the Period
December 14, 1941
through August 14, 1945
(WWII).
19 29 Jun 92............... U.S. Civilian Flight
Crew and Aviation
Ground Support
Employees of
Consolidated Vultee
Aircraft Corporation
(Convair Division), Who
Served Overseas as a
Result of a Contract
with the Air Transport
Command during the
Period (WWII) U.S.
Civilian Flight Crew
and Aviation Ground
Support during the
Period December 7, 1941
through August 14, 1945
(WWII).
20 17 Jul 92............... U.S. Civilian Flight
Crew and Aviation
Ground Support
Employees of Pan
American World Airways
and its subsidiaries
and affiliates, Who
Served Overseas as a
Result of Pan
American's Contract
with the Air Transport
Command and Naval Air
Transport Service
during the Period
December 14, 1941
through August 14, 1945
(WWII).
21 29 Jun 92............... Honorably Discharged
Members of the American
Volunteer Guard,
Eritrea Service Command
during the Period June
21, 1942 to March 31,
1943 (WWII).
22 13 Dec 93............... U.S. Civilian Flight
Crew and Aviation
Ground Support
Employees of Northwest
Airlines, Who Served
Overseas as a Result of
Northwest Airline's
Contract with the Air
Transport Command
during the Period
December 14, 1941
through August 14, 1945
(WWII).
23 13 Dec 93............... U.S. Civilian Female
Employees of the U.S.
Army Nurse Corps While
Serving in the Defense
of Bataan and
Corregidor During the
Period January 2, 1942
to June 12, 1945
(WWII).
24 2 Jun 97................ U.S. Civilian Flight
Crew and Aviation
Ground Support
Employees of Northeast
Airlines Atlantic
Division, who served
overseas in the result
Northeast Airlines'
contract with the Air
Transport Command
during the Period
December 7, 1941, to
August 14, 1945 (WWII).
25 2 Jun 97................ U.S. Civilian Flight
Crew and Aviation
Ground Support
Employees of Braniff
Airways, who served
overseas in the North
Atlantic or under the
jurisdiction of the
North Atlantic Wing as
a result of a contract
with Air Transport
Command during the
period February 26,
1942, to August 14,
1945 (WWII).
26 30 Sep 99............... Approximately 50
Chamorro and Carolinian
policemen, who received
military training and
under the command of
the 6th Provisional
Military Police
Battalion, to accompany
U.S. Marines in combat
patrol activity from
August 19, 1945, to
September 2, 1945.
27 27 Aug 99............... Operational Analysis
Group of the Office of
Scientific Research and
Development, who served
overseas from December
7, 1941, through August
15, 1945.
28 9 Aug 00................ Service as a member of
the Alaska Territorial
Guard during World War
II of any individual
who was honorably
discharged under
section 8147 of the
Department of Defense
Appropriations Act of
2001 (P.L. 106-259) .
------------------------------------------------------------------------
Steve Buyer.