I never could wrap my head around the Demon Congress (or Student Clubs as it is in D3) or the Magichange system.
You are talking about the system for passing bills right (approving new characters, stats boosts and what not) just making sure before I type out stuff.
as for the magichange system I didn't use it much, (in general I don't use monsters much) so I had to look up some things, especially since it changed in 4, and thus the vita 3's version might be closer to 4, but in general it works like this.
you have a monster and a human stand next to each other. I believe that the two that you are trying to magichange with need to be in the same club. When those conditions are met the monster will turn into a weapon, the weapon will be based on the type of monster it is and be equipped on the human. The stats for the weapon will be 30% of the monsters stats, meaning if the monster is weak it can actually make the human weaker to do this. The human will get the monsters main Evility (passive skill) and some unique skills. If the human kills something while using the monster as a weapon both will get exp and mana for it.
If the human dies while using the weapon the monster is considered dead as well. After 2 turns the monster is unequipped and the human gets their old weapon back, at which point the monster is considered defeated but I believe it will just be off limits to summon again and not dead not 100% on that though, they might die from this exchange.
the main benefit to the magichange is that with a powerful monster you can quickly level up a weak human, or vice versa. The extra skills are nice, but the big thing is just making sure that the change serves a purpose as a strong increase in power or to level up two things at once.