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                    The proposed amendment would avoid confusion and                  
               controversy which has sometimes arisen in connection                   
               with the application to such persons of various                        
               statutes, regulations, or bills relating to Federal                    
               employees.  It would enable the Veterans’                              
               Administration to prescribe the conditions and benefits                
               which will best serve the therapeutic and                              
               rehabilitative objectives of the program.                              
          S. Rept. 1693, supra, 1962 U.S.C.C.A.N. at 2103 (emphasis added).           
                    2.  Veterans Omnibus Health Care Act of 1976                      
               Veterans Omnibus Health Care Act of 1976, Pub. L. 94-581,              
          section 105(a)(3), 90 Stat. 2845, added to section 618 of title             
          38 provisions substantially the same as those in subsections (b)            
          through (e) of section 1718.  S. Rept. 94-1206 (Part I) (1976),             
          reprinted in 1976 U.S.C.C.A.N. 6355, is a portion of the report             
          of the Committee on Veterans’ Affairs that accompanied S. 2908,             
          94th Cong., 2d Sess. (1976), which, substantially in the form of            
          H.R. 2735, 94th Cong., 2d Sess. (1976), was enacted as Pub. L.              
          94-581.                                                                     
               The report states that among the purposes of S. 2908 is the            
          clarification of the VA’s authority to enter into arrangements              
          with private industry and nonprofit corporations to supply work             
          projects for patient workers and to establish a revolving fund to           
          receive and disburse funds in connection with such work.  S.                
          Rept. 94-1206 (Part I), supra at 57, 1976 U.S.C.C.A.N. at 6357.             
          The report refers to such work as being part of the VA’s                    
          compensated work-therapy program and describes that program as              
          being carried out under the VA’s medical care authority and                 






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