Servicemembers and Veterans Legal Protections Act of 2004
Legislative Activity
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Received in the Senate.
October 7, 2004
View full timeline
Introduced in House
June 23, 2004
Referred to the House Committee on Veterans' Affairs.
June 23, 2004
Sponsor introductory remarks on measure. (CR E1226)
June 24, 2004
Committee Consideration and Mark-up Session Held.
July 21, 2004
Ordered to be Reported (Amended) by Voice Vote.
July 21, 2004
Reported (Amended) by the Committee on Veterans' Affairs. H. Rept. 108-683.
September 13, 2004
Placed on the Union Calendar, Calendar No. 422.
September 13, 2004
Mr. Smith (NJ) moved to suspend the rules and pass the bill, as amended.
October 7, 2004 • 1:55 AM
Considered under suspension of the rules. (consideration: CR H8384-8390)
October 7, 2004 • 1:56 AM
DEBATE - The House proceeded with forty minutes of debate on H.R. 4658.
October 7, 2004 • 1:56 AM
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H8384-8387)
October 7, 2004 • 2:07 AM
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8384-8387)
October 7, 2004 • 2:07 AM
Motion to reconsider laid on the table Agreed to without objection.
October 7, 2004 • 2:07 AM
The title of the measure was amended. Agreed to without objection.
October 7, 2004 • 2:07 AM
Received in the Senate.
October 7, 2004
Floor Debate
16 membersWhat members said about H.R. 4658 on the floor




+11
Floor Debate
16 membersWhat members said about H.R. 4658 on the floor
Mr. Speaker, I move to suspend the rules and concur in the Senate amendments to the bill (H.R. 3936) to amend title 38, United States Code, to authorize the principal office of the United States…
Mr. Speaker, I move to suspend the rules and pass the Senate bill (S. 2486) to amend title 38, United States Code, to improve and extend housing, education, and other benefits under the laws…
Mr. Speaker, I rise in strong support of S. 2486. This legislation includes a number of measures to improve the lives of this Nation's veterans and their families. I also want to thank the gentleman…
Mr. Speaker, I think this is a very important moment on this floor, and I think that we owe this entire committee a debt of gratitude; the chairman, the gentleman from New Jersey (Mr. Smith); the…
Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 3936, the Veterans Health Programs Improvement Act of 2004. I want to take this opportunity to thank the…
Show 8 more
Mr. President, as ranking member of the Committee on Veterans' Affairs, I urge my colleagues to continue to support our veterans and their families by passing the Veterans Benefits Improvement Act of…
Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker I rise in strong support of S. 2486, the Veterans Benefits Improvement Act of 2004. I would like to thank the ranking member, the…
Mr. Speaker, I rise in strong support of H.R. 4658, the Servicemembers and Veterans Legal Protection Act of 2004. I want to thank Chairman Smith, as well as Henry Brown and Michael Michaud, Chairman…
Mr. Speaker, I rise to add my strong support to H.R. 3936, the Veterans Health Programs Improvement Act of 2004. I want to acknowledge what some of my colleagues have already said. I want to…
Mr. Speaker, I rise in strong support of H.R. 4658, the Servicemembers Legal Protection Act of 2004. This important legislation includes a number of provisions intended to enhance and improve the…
Mr. Speaker, I rise today to introduce H.R. 4658, the Servicemembers Legal Protection Act of 2004, legislation to further strengthen the legal and financial rights of military servicemembers,…
Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in strong support of H.R. 4658, the Servicemembers and Veterans Legal Protections Act of 2004. I want to thank our ranking…
Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4658) to amend the Servicemembers Civil Relief Act to make certain improvements and technical corrections to that Act, as amended. Mr.…
Show 11 more
Mr. President, I have sought recognition to comment on a substitute amendment I propose to make to S. 2486, the Veterans' Benefits Improvements Act of 2004, as part of my request that the bill, as so…
Mr. Speaker, I first want to thank the gentleman from New Jersey (Mr. Smith) for his leadership and advocacy on behalf of veterans. No one has worked harder for veterans than he has. I appreciate his…
Mr. Speaker, as a member of the VA Subcommittee on Health, I also rise in support of H.R. 3936 which includes, as we have heard, a lot of provisions to enhance services to our Nation's veterans. We…
Mr. Speaker, I rise today in support of S. 2486, the Veterans Benefit Improvement Act, and I would like to take this opportunity to thank the gentleman from New Jersey (Chairman Smith), as well as…
Mr. Speaker, I thank the distinguished chairman of the Committee on Veterans' Affairs, and also I want to thank the gentleman from Connecticut who chairs the Subcommittee on Health for what an…
Mr. Speaker, with another Veterans Day recently passed, we heard much about the incredible sacrifices made by America's veterans and their tremendous bravery. I strongly echo those sentiments.…
Mr. Speaker, I rise as a strong supporter of H.R. 3936 the Veterans Health Programs Improvement Act of 2004 which would increase the authorization of appropriations for grants to benefit homeless…
Mr. Speaker, I thank the gentleman for his kind remarks. Mr. Speaker, I rise today in strong support of S. 2486, the Veterans Benefit Improvement Act of 2004. We have been working on this…
Mr. Speaker, I rise in support of the veterans bills being considered today and to thank and congratulate my colleagues, especially the gentleman from New Jersey (Chairman Smith), the gentleman from…
Mr. Speaker, I thank the gentleman very much for the time. I am very pleased to support Senate 2486, the Veterans Benefit Improvement Act of 2004, and I am glad we got it finished this year. I know…
Mr. President, I have sought recognition to comment on a substitute amendment I propose to make to S. 2485, the ``Veterans Health Programs Improvements Act of 2004,'' as part of my request that the…
Bill Text
4 versions available
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4658 Engrossed in House (EH)]
108th CONGRESS
2d Session
H. R. 4658
_______________________________________________________________________
AN ACT
To amend the Servicemembers Civil Relief Act to make certain
improvements and technical corrections to that Act, otherwise to
improve legal protections provided to reserve component members called
to active duty, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Servicemembers and
Veterans Legal Protections Act of 2004''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT
Sec. 101. Clarification of meaning of ``judgment'' as used in the Act.
Sec. 102. Requirements relating to waiver of rights under the Act.
Sec. 103. Right of servicemember plaintiffs to request stay of civil
proceedings.
Sec. 104. Termination of leases.
Sec. 105. Prevention of double taxation of certain servicemembers.
TITLE II--EMPLOYMENT AND REEMPLOYMENT RIGHTS
Subtitle A--Extension of Health Care Coverage
Sec. 201. Two-year period of continuation of employer-sponsored health
care coverage.
Sec. 202. Reinstatement of reporting requirements.
Subtitle B--Other Matters
Sec. 211. Requirement for employers to provide notice of rights and
duties under USERRA.
Sec. 212. Demonstration project for referral of USERRA claims against
Federal agencies to the Office of Special
Counsel.
TITLE III--MATTERS RELATING TO FIDUCIARIES
Sec. 301. Definition of fiduciary.
Sec. 302. Inquiry, investigations, and qualification of fiduciaries.
Sec. 303. Misuse of benefits by fiduciaries.
Sec. 304. Additional protections for beneficiaries with fiduciaries.
Sec. 305. Annual report.
Sec. 306. Annual adjustment in benefits thresholds.
Sec. 307. Effective dates.
TITLE IV--OTHER MATTERS
Sec. 401. Inventory of medical waste management activities at
Department health-care facilities.
Sec. 402. Technical amendments to education program provisions.
TITLE I--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT
SEC. 101. CLARIFICATION OF MEANING OF ``JUDGMENT'' AS USED IN THE ACT.
Section 101 of the Servicemembers Civil Relief Act (50 U.S.C. App.
511) is amended by adding at the end the following new paragraph:
``(9) Judgment.--The term `judgment' means any judgment,
decree, order, or ruling, final or temporary.''.
SEC. 102. REQUIREMENTS RELATING TO WAIVER OF RIGHTS UNDER THE ACT.
Section 107 of the Servicemembers Civil Relief Act (50 U.S.C. App.
517) is amended--
(1) In subsection (a), by inserting after the first
sentence the following new sentence: ``Any such waiver that
applies to an action listed in subsection (b) of this section
is effective only if it is in writing and is executed as an
instrument separate from the obligation or liability to which
it applies.'';
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following new
subsection (c):
``(c) Prominent Display of Certain Contract Rights Waivers.--Any
waiver in writing of a right or protection provided by this Act that
applies to a contract, lease, or similar legal instrument must be in at
least 12 point type.''.
SEC. 103. RIGHT OF SERVICEMEMBER PLAINTIFFS TO REQUEST STAY OF CIVIL
PROCEEDINGS.
Section 202(a) of the Servicemembers Civil Relief Act (50 U.S.C.
App. 522(a)) is amended by inserting ``plaintiff or'' before
``defendant''.
SEC. 104. TERMINATION OF LEASES.
(a) Joint Leases.--Subsection (a) of section 305 of the
Servicemembers Civil Relief Act (50 U.S.C. App. 535) is amended to read
as follows:
``(a) Termination by Lessee.--
``(1) In general.--The lessee on a lease described in
subsection (b) may, at the lessee's option, terminate the lease
at any time after--
``(A) the lessee's entry into military service; or
``(B) the date of the lessee's military orders
described in paragraph (1)(B) or (2)(B) of subsection
(b), as the case may be.
``(2) Joint leases.--A lessee's termination of a lease
pursuant to this subsection shall terminate any obligation a
dependent of the lessee may have under the lease.''.
(b) Motor Vehicles Leases.--
(1) Applicability to pcs orders from states outside
conus.--Subparagraph (B) of subsection (b)(2) of such section
is amended by striking ``military orders for'' and all that
follows through ``or to deploy'' and inserting ``military
orders--
``(i) for a change of permanent station--
``(I) from a location in the
continental United States to a location
outside the continental United States;
or
``(II) from a location in a State
outside the continental United States
to any location outside that State; or
``(ii) to deploy''.
(2) Definitions.--Such section is further amended by adding
at the end the following new subsection:
``(i) Definitions.--
``(1) Military orders.--The term `military orders', with
respect to a servicemember, means official military orders, or
any notification, certification, or verification from the
servicemember's commanding officer, with respect to the
servicemember's current or future military duty status.
``(2) Conus.--The term `continental United States' means
the 48 contiguous States and the District of Columbia.''.
(c) Coverage of Individual Deployments.--Subsection (b) of such
section is further amended in paragraph (1)(B) and paragraph (2)(B)(ii)
(as designated by subsection (b) of this section) by inserting ``, or
as an individual in support of a military operation,'' after ``deploy
with a military unit''.
SEC. 105. PREVENTION OF DOUBLE TAXATION OF CERTAIN SERVICEMEMBERS.
Section 511(c) of the Servicemembers Civil Relief Act (50 U.S.C.
App. 571(c)) is amended by adding at the end the following new
paragraph:
``(5) Use, excise, or similar taxes.--A tax jurisdiction
may not impose a use, excise, or similar tax on the personal
property of a nonresident servicemember when the laws of the
tax jurisdiction fail to provide a credit against such taxes
for sales, use, excise, or similar taxes previously paid on the
same property to another tax jurisdiction.''.
TITLE II--EMPLOYMENT AND REEMPLOYMENT RIGHTS
Subtitle A--Extension of Health Care Coverage
SEC. 201. TWO-YEAR PERIOD OF CONTINUATION OF EMPLOYER-SPONSORED HEALTH
CARE COVERAGE.
(a) Improvement in Period of Coverage.--Subsection (a)(1)(A) of
section 4317 of title 38, United States Code, is amended by striking
``18-month period'' and inserting ``24-month period''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to elections made under such section 4317 on or after the date of
the enactment of this Act.
SEC. 202. REINSTATEMENT OF REPORTING REQUIREMENTS.
Section 4332 of title 38, United States Code, is amended in the
matter preceding paragraph (1) by striking ``no later than February 1,
1996, and annually thereafter through 2000'' and inserting ``no later
than February 1, 2005, and annually thereafter''.
Subtitle B--Other Matters
SEC. 211. REQUIREMENT FOR EMPLOYERS TO PROVIDE NOTICE OF RIGHTS AND
DUTIES UNDER USERRA.
(a) Notice.--Chapter 43 of title 38, United States Code, is amended
by adding at the end the following new section:
``Sec. 4334. Notice of rights and duties
``(a) Requirement to Provide Notice.--Each employer shall provide
to persons entitled to rights and benefits under this chapter a notice
of the rights, benefits, and obligations of such persons and such
employers under this chapter. The requirement for the provision of
notice under this section may be met by the posting of the notice where
employers customarily place notices for employees.
``(b) Content of Notice.--The Secretary shall provide to employers
the text of the notice to be provided under this section.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:
``4334. Notice of rights and duties.''.
(c) Implementation.--(1) Not later than the date that is 90 days
after the date of the enactment of this Act, the Secretary of Labor
shall make available to employers the notice required under section
4334 of title 38, United States Code, as added by subsection (a).
(2) The amendments made by this section shall apply to employers
under chapter 43 of such title on and after the first date referred to
in paragraph (1).
SEC. 212. DEMONSTRATION PROJECT FOR REFERRAL OF USERRA CLAIMS AGAINST
FEDERAL AGENCIES TO THE OFFICE OF SPECIAL COUNSEL.
(a) Establishment of Project.--The Secretary of Labor and the
Office of Special Counsel shall carry out a demonstration project under
which certain claims against Federal executive agencies under the
Uniformed Services Employment and Reemployment Rights Act under chapter
43 of title 38, United States Code, are referred to, or otherwise
received by, the Office of Special Counsel for assistance, including
investigation and resolution of the claim as well as enforcement of
rights with respect to the claim.
(b) Referral of All Prohibited Personnel Action Claims to the
Office of Special Counsel.--(1) Under the demonstration project, the
Office of Special Counsel shall receive and investigate all claims
under the Uniformed Services Employment and Reemployment Rights Act
with respect to Federal executive agencies in cases where the Office of
Special Counsel has jurisdiction over related claims pursuant to
section 1212 of title 5, United States Code.
(2) For purposes of paragraph (1), a related claim is a claim
involving the same Federal executive agency and the same or similar
factual allegations or legal issues as those being pursued under a
claim under the Uniformed Services Employment and Reemployment Rights
Act.
(c) Referral of Other Claims Against Federal Executive Agencies.--
(1) Under the demonstration project, the Secretary--
(A) shall refer to the Office of Special Counsel all claims
described in paragraph (2) made during the period of the
demonstration project; and
(B) may refer any claim described in paragraph (2) filed
before the demonstration project that is pending before the
Secretary at the beginning of the demonstration project.
(2) A claim referred to in paragraph (1) is a claim under chapter
43 of title 38, United States Code, against a Federal executive agency
by a claimant with a social security account number with an odd number
as its terminal digit, or, in the case of a claim that does not contain
a social security account number, a case number assigned to the claim
with an odd number as its terminal digit.
(d) Administration of Demonstration Project.--(1) The Office of
Special Counsel shall administer the demonstration project. The
Secretary shall cooperate with the Office of Special Counsel in
carrying out the demonstration project.
(2) In the case of any claim referred, or otherwise received by, to
the Office of Special Counsel under the demonstration project, any
reference to the ``Secretary'' in sections 4321, 4322, and 4326 of
title 38, United States Code, is deemed a reference to the ``Office of
Special Counsel''.
(3) In the case of any claim referred to, or otherwise received by,
the Office of Special Counsel under the demonstration project, the
Office of Special Counsel shall retain administrative jurisdiction over
the claim.
(e) Period of Project.--The demonstration project shall be carried
out during the period beginning on the date that is 60 days after the
date of the enactment of this Act, and ending on September 30, 2007.
(f) Evaluations and Report.--(1) The Comptroller General of the
United States shall conduct periodic evaluations of the demonstration
project under this section.
(2) Not later than April 1, 2007, the Comptroller General shall
submit to Congress a report on the evaluations conducted under
paragraph (1). The report shall include the following information and
recommendations:
(A) A description of the operation and results of the
demonstration program, including--
(i) the number of claims described in subsection
(c) referred to, or otherwise received by, the Office
of Special Counsel and the number of such claims
referred to the Secretary of Labor, and
(ii) for each Federal executive agency, the number
of claims resolved, the type of corrective action
obtained, the period of time for final resolution of
the claim, and the results obtained.
(B) An assessment of whether referral to the Office of
Special Counsel of claims under the demonstration project--
(i) improved services to servicemembers and
veterans; or
(ii) significantly reduced or eliminated
duplication of effort and unintended delays in
resolving meritorious claims of those servicemembers
and veterans.
(C) An assessment of the feasibility and advisability of
referring all claims under chapter 43 of title 38, United
States Code, against Federal executive agencies to the Office
of Special Counsel for investigation and resolution.
(D) Such other recommendations for administrative action or
legislation as the Comptroller General determines appropriate.
(g) Definitions.--In this section:
(1) The term ``Office of Special Counsel'' means the Office
of Special Counsel established by section 1211 of title 5,
United States Code.
(2) The term ``Secretary'' means the Secretary of Labor.
(3) The term ``Federal executive agency'' has the meaning
given that term in section 4303(5) of title 38, United States
Code.
TITLE III--MATTERS RELATING TO FIDUCIARIES
SEC. 301. DEFINITION OF FIDUCIARY.
(a) In General.--(1) Chapter 55 of title 38, United States Code, is
amended by adding at the end the following new section:
``Sec. 5506. Definition of `fiduciary'
``For purposes of this chapter and chapter 61 of this title, the
term `fiduciary' means--
``(1) a person who is a guardian, curator, conservator,
committee, or person legally vested with the responsibility or
care of a claimant (or a claimant's estate) or of a beneficiary
(or a beneficiary's estate); or
``(2) any other person having been appointed in a
representative capacity to receive money paid under any of the
laws administered by the Secretary for the use and benefit of a
minor, incompetent, or other beneficiary.''.
(2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:
``5506. Definition of `fiduciary'.''.
(b) Conforming Amendments to Section 5502.--Section 5502 of such
title is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``other person''
and inserting ``other fiduciary''; and
(B) in the second sentence of paragraph (2), by
inserting ``for benefits under this title'' after ``in
connection with rendering fiduciary services'';
(2) in subsection (b), by striking ``guardian, curator,
conservator, or other person'' each place it appears and
inserting ``fiduciary''; and
(3) in subsection (d), by striking ``guardian, curator, or
conservator'' and inserting ``fiduciary''.
(c) Conforming Amendment to Section 6101.--Section 6101(a) of such
title is amended by striking ``guardian, curator,'' and all that
follows through ``beneficiary,'' and inserting ``fiduciary (as defined
in section 5506 of this title) for the benefit of a minor, incompetent,
or other beneficiary under laws administered by the Secretary,''.
SEC. 302. INQUIRY, INVESTIGATIONS, AND QUALIFICATION OF FIDUCIARIES.
(a) In General.--Chapter 55 of title 38, United States Code, as
amended by section 301(a)(1), is further amended by adding at the end
the following new section:
``Sec. 5507. Inquiry, investigations, and qualification of fiduciaries
``(a) Any certification of a person for payment of benefits of a
beneficiary to that person as such beneficiary's fiduciary under
section 5502 of this title shall be made on the basis of--
``(1) an inquiry or investigation by the Secretary of the
fitness of that person to serve as fiduciary for that
beneficiary, such inquiry or investigation--
``(A) to be conducted in advance of such
certification;
``(B) to the extent practicable, to include a face-
to-face interview with such person; and
``(C) to the extent practicable, to include a copy
of a credit report for such person issued within one
year of the date of the proposed appointment;
``(2) adequate evidence that certification of that person
as fiduciary for that beneficiary is in the interest of such
beneficiary (as determined by the Secretary under regulations);
and
``(3) the furnishing of any bond that may be required by
the Secretary.
``(b) As part of any inquiry or investigation of any person under
subsection (a), the Secretary shall request information concerning
whether that person has been convicted of any offense under Federal or
State law which resulted in imprisonment for more than one year. If
that person has been convicted of such an offense, the Secretary may
certify the person as a fiduciary only if the Secretary makes a
specific finding that the person has been rehabilitated and is an
appropriate person to act as fiduciary for the beneficiary concerned
under the circumstances.
``(c)(1) In the case of a proposed fiduciary described in paragraph
(2), the Secretary, in conducting an inquiry or investigation under
subsection (a)(1), may carry out such inquiry or investigation on an
expedited basis that may include waiver of any specific requirement
relating to such inquiry or investigation, including the otherwise
applicable provisions of subparagraphs (A), (B), and (C) of such
subsection. Any such inquiry or investigation carried out on such an
expedited basis shall be carried out under regulations prescribed for
purposes of this section.
``(2) Paragraph (1) applies with respect to a proposed fiduciary
who is--
``(A) the parent (natural, adopted, or stepparent) of a
beneficiary who is a minor;
``(B) the spouse or parent of an incompetent beneficiary;
``(C) a person who has been appointed a fiduciary of the
beneficiary by a court of competent jurisdiction; or
``(D) being appointed to manage an estate where the annual
amount of veterans benefits to be managed by the proposed
fiduciary does not exceed $3600, as adjusted pursuant to
section 5312 of this title.
``(d) Temporary Fiduciaries.--When in the opinion of the Secretary,
a temporary fiduciary is needed in order to protect the assets of the
beneficiary while a determination of incompetency is being made or
appealed or a fiduciary is appealing a determination of misuse, the
Secretary may appoint one or more temporary fiduciaries for a period
not to exceed 120 days. If a final decision has not been made within
120 days, the Secretary may not continue the appointment of the
fiduciary without obtaining a court order for appointment of a
guardian, conservator, or other fiduciary under the authority provided
in section 5502(b) of this title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding after the item added by section
301(a)(2) the following new item:
``5507. Inquiry, investigations, and qualification of fiduciaries.''.
SEC. 303. MISUSE OF BENEFITS BY FIDUCIARIES.
(a) Protection of Veterans Benefits When Administered by
Fiduciaries.--(1) Chapter 61 of title 38, United States Code, is
amended by adding at the end the following new sections:
``Sec. 6106. Misuse of benefits by fiduciaries
``(a) Fee Forfeiture in Case of Benefit Misuse by Fiduciaries.--A
fiduciary may not collect a fee from a beneficiary for any month with
respect to which the Secretary or a court of competent jurisdiction has
determined that the fiduciary misused all or part of the individual's
benefit, and any amount so collected by the fiduciary as a fee for such
month shall be treated as a misused part of the individual's benefit.
``(b) Liability of Fiduciaries for Misused Benefits.--(1) If the
Secretary or a court of competent jurisdiction determines that a
fiduciary that is not a Federal, State, or local government agency has
misused all or part of a beneficiary's benefit that was paid to such
fiduciary, the fiduciary shall be liable for the amount misused, and
such amount (to the extent not repaid by the fiduciary) shall be
treated as an erroneous payment of benefits under this title to the
fiduciary for purposes of laws pertaining to the recovery of
overpayments. The amount of such overpayment shall constitute a
liability of such fiduciary to the United States and may be recovered
in the same manner as any other debt due the United States. Subject to
paragraph (2), upon recovering all or any part of such amount, the
Secretary shall pay an amount equal to the recovered amount to such
beneficiary or such beneficiary's successor fiduciary.
``(2) The total of the amounts paid to a beneficiary (or a
beneficiary's successor fiduciary) under paragraph (1) and under
section 6107 of this title may not exceed the total benefit amount
misused by the fiduciary with respect to that beneficiary.
``(c) Misuse of Benefits Defined.--For purposes of this chapter,
misuse of benefits by a fiduciary occurs in any case in which the
fiduciary receives payment, under any of laws administered by the
Secretary, for the use and benefit of a beneficiary and uses such
payment, or any part thereof, for a use other than for the use and
benefit of such beneficiary or that beneficiary's dependents. Retention
by a fiduciary of an amount of a benefit payment as a fiduciary fee or
commission, or as attorney's fees (including expenses) and court costs,
if authorized by the Secretary or a court of competent jurisdiction,
shall be considered to be for the use or benefit of such beneficiary.
``(d) Regulations.--The Secretary may prescribe by regulation the
meaning of the term `use and benefit' for purposes of this section.
``(e) Finality of Determinations.--A determination by the Secretary
that a fiduciary has misused benefits is a decision of the Secretary
for purposes of section 511(a) of this title.
``Sec. 6107. Reissuance of benefits
``(a) Negligent Failure by Secretary.--(1) In any case in which the
negligent failure of the Secretary to investigate or monitor a
fiduciary results in misuse of benefits by the fiduciary, the Secretary
shall pay to the beneficiary or the beneficiary's successor fiduciary
an amount equal to the amount of benefits that were so misused.
``(2) There shall be considered to have been a negligent failure by
the Secretary to investigate and monitor a fiduciary in the following
cases:
``(A) A case in which the Secretary failed to timely review
a fiduciary's accounting.
``(B) A case in which the Secretary was notified of
allegations of misuse, but failed to act in a timely manner to
terminate the fiduciary.
``(C) In any other case in which actual negligence is
shown.
``(b) Reissuance of Misused Benefits in Other Cases.--(1) In any
case in which a fiduciary described in paragraph (2) misuses all or
part of an individual's benefit paid to such fiduciary, the Secretary
shall pay to the beneficiary or the beneficiary's successor fiduciary
an amount equal to the amount of such benefit so misused.
``(2) Paragraph (1) applies to a fiduciary that--
``(A) is not an individual; or
``(B) is an individual who, for any month during a period
when misuse occurs, serves 10 or more individuals who are
beneficiaries under this title.
``(c) Recoupment of Amounts Reissued.--In any case in which the
Secretary reissues a benefit payment (in whole or in part) under
subsection (a) or (b), the Secretary shall make a good faith effort to
obtain recoupment from the fiduciary to whom the payment was originally
made.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new items:
``6106. Misuse of benefits by fiduciaries.
``6107. Reissuance of benefits.''.
SEC. 304. ADDITIONAL PROTECTIONS FOR BENEFICIARIES WITH FIDUCIARIES.
(a) Onsite Reviews and Required Accountings.--(1) Chapter 55 of
title 38, United States Code, as amended by section 302(a), is further
amended by adding at the end the following new sections:
``Sec. 5508. Periodic onsite reviews of institutional fiduciaries
``In addition to such other reviews of fiduciaries as the Secretary
may otherwise conduct, the Secretary shall provide for the periodic
onsite review of any person or agency located in the United States that
receives the benefits payable under laws administered by the Secretary
to another individual pursuant to the appointment of such person or
agency as a fiduciary under section 5502(a)(1) of this title in any
case in which the fiduciary is serving in that capacity with respect to
more than 20 beneficiaries and the total annual amount of such benefits
exceeds $50,000, as adjusted pursuant to section 5312 of this title.
``Sec. 5509. Authority to redirect delivery of benefit payments when a
fiduciary fails to provide required accounting
``(a) Required Reports and Accountings.--The Secretary may require
a fiduciary to file a report or accounting pursuant to regulations
prescribed by the Secretary.
``(b) Actions Upon Failure to File.--In any case in which a
fiduciary fails to submit a report or accounting required by the
Secretary under subsection (a), the Secretary may, after furnishing
notice to such fiduciary and the beneficiary entitled to such payment
of benefits, require that such fiduciary appear in person at a regional
office of the Department serving the area in which the beneficiary
resides in order to receive such payments.''.
(2) The table of sections at the beginning of such chapter is
amended by adding after the item added by section 302(b) the following
new items:
``5508. Periodic onsite reviews of institutional fiduciaries.
``5509. Authority to redirect delivery of benefit payments when a
fiduciary fails to provide required
accounting.''.
(b) Civil Monetary Penalties; Judicial Orders of Restitution.--(1)
Chapter 61 of title 38, United States Code, as amended by section
303(a), is further amended by adding at the end the following new
sections:
``Sec. 6108. Civil monetary penalties
``(a) Penalty for Conversion.--Any person (including an
organization, agency, or other entity) who, having received, while
acting in the capacity of a fiduciary pursuant to section 5502 of this
title, a payment under a law administered by the Secretary for the use
and benefit of another individual, converts such payment, or any part
thereof, to a use that such person knows or should know is other than
for the use and benefit of such other individual shall be subject to,
in addition to any other penalty that may be prescribed by law, a civil
monetary penalty assessed by the Secretary of not more than $5,000 for
each such conversion.
``(b) Penalty in Lieu of Damages.--Any person who makes a
conversion of a payment described in subsection (a) and is subject to a
civil monetary penalty under that subsection by reason of such
conversion shall also be subject to an assessment by the Secretary, in
lieu of damages sustained by the United States resulting from the
conversion, of not more than twice the amount of any payments so
converted.
``(c) Costs of Recovery.--From amounts collected under this
section, the amount necessary to recoup the Department's costs of such
collection shall be credited to appropriations currently available for
the same purpose as the appropriation that incurred those costs, to
remain available until expended.
``Sec. 6109. Authority for judicial orders of restitution
``(a) Any Federal court, when sentencing a defendant convicted of
an offense arising from the misuse of benefits under this title, may
order, in addition to or in lieu of any other penalty authorized by
law, that the defendant make restitution to the Department.
``(b) Sections 3612, 3663, and 3664 of title 18 shall apply with
respect to the issuance and enforcement of orders of restitution under
subsection (a). In so applying those sections, the Department shall be
considered the victim.
``(c) If the court does not order restitution, or orders only
partial restitution, under subsection (a), the court shall state on the
record the reasons therefor.
``(d)(1) Except as provided in paragraph (2), amounts received or
recovered by the Secretary pursuant to an order of restitution under
subsection (a), to the extent and in the amounts provided in advance in
appropriations Acts, shall be available to defray expenses incurred by
the Office of the Inspector General for the investigation of
fiduciaries under this title.
``(2) Paragraph (1) shall not apply with respect to amounts
received in connection with misuse by a fiduciary of funds paid as
benefits under laws administered by the Secretary. Such amounts shall
be paid to the individual whose benefits were misused unless the
Secretary has previously reissued the misused benefits, in which case
the amounts shall be treated in the same manner as overpayments
recouped by the Secretary and shall be deposited to the credit of the
applicable revolving fund, trust fund, or appropriation.''.
(2) The table of sections at the beginning of such chapter is
amended by adding after the item added by section 303(b) the following
new items:
``6108. Civil monetary penalties.
``6109. Authority for judicial orders of restitution.''.
SEC. 305. ANNUAL REPORT.
(a) In General.--Chapter 55 of title 38, United States Code, as
amended by section 304(a)(1), is further amended by adding at the end
the following new section:
``Sec. 5510. Annual report
``The Secretary shall include in the Annual Benefits Report of the
Veterans Benefits Administration or the Secretary's Annual Performance
and Accountability Report information concerning fiduciaries who have
been appointed to receive payments for beneficiaries of the Department.
As part of such information, the Secretary shall separately set forth
the following:
``(1) The number of beneficiaries in each category
(veteran, surviving spouse, child, adult disabled child, or
parent).
``(2) The types of benefit being paid (compensation,
pension, dependency and indemnity compensation, death pension
or benefits payable to a disabled child under chapter 18 of
this title).
``(3) The total annual amounts and average annual amounts
of benefits paid to fiduciaries for each category and type of
benefit.
``(4) The number of fiduciaries who are the (spouse,
parent, legal custodian, court-appointed fiduciary,
institutional fiduciary, custodian in fact, and supervised
direct payment).
``(5) The number of cases in which the fiduciary was
changed by the Secretary because of a finding that benefits had
been misused.
``(6) How such cases of misuse of benefits were addressed
by the Secretary.
``(7) The final disposition of such cases of misuse of
benefits, including the number and dollar amount of any civil
or criminal penalties imposed.
``(8) Such other information as the Secretary considers
appropriate.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding after the items added by the
amendment made by section 304(a)(2) the following new item:
``5510. Annual report.''.
SEC. 306. ANNUAL ADJUSTMENT IN BENEFITS THRESHOLDS.
Section 5312(b)(1) of title 38, United States Code, is amended by
inserting ``and the annual benefit amount limitations under sections
5507(c)(2)(D) and 5508 of this title,'' after ``(d)(3) of such
section,''.
SEC. 307. EFFECTIVE DATES.
(a) In General.--Except as otherwise provided, this title and the
amendments made by this title shall take effect on the first day of the
seventh month beginning after the date of the enactment of this Act.
(b) Special Rules.--(1) Section 5510 of title 38, United States
Code, as added by section 305(a), shall take effect on the date of the
enactment of this Act.
(2) Sections 6106 and 6107 of title 38, United States Code, as
added by section 303(a), shall apply with respect to any determinations
by the Secretary of Veterans Affairs made after the date of the
enactment of this Act of misuse of funds by a fiduciary.
TITLE IV--OTHER MATTERS
SEC. 401. INVENTORY OF MEDICAL WASTE MANAGEMENT ACTIVITIES AT
DEPARTMENT HEALTH-CARE FACILITIES.
(a) Inventory.--The Secretary of Veterans Affairs shall establish
and maintain a national inventory of medical waste management
activities in the health-care facilities of the Department of Veterans
Affairs. The inventory shall include the following:
(1) A statement of the current national policy of the
Department on managing and disposing of medical waste,
including regulated medical waste in all its forms.
(2) A description of the program of each geographic service
area of the Department to manage and dispose of medical waste,
including general medical waste and regulated medical waste,
with a description of the primary methods used in those
programs and the associated costs of those programs, with cost
information shown separately for in-house costs (including
full-time equivalent employees) and contract costs.
(b) Report.--Not later than April 15, 2005, the Secretary of
Veterans Affairs shall submit to the Committees on Veterans' Affairs of
the Senate and House of Representatives a report on medical waste
management activities in the facilities of the Department of Veterans
Affairs. The report shall include the following:
(1) The inventory established under subsection (a),
including all the matters specified in that subsection.
(2) A listing of each violation of medical waste management
and disposal regulations reported at any health-care facility
of the Department over the preceding five years by any State or
Federal agency, along with an explanation of any remedial or
other action taken by the Secretary in response to each such
reported violation.
(3) A description of any plans to modernize, consolidate,
or otherwise improve the management of medical waste and
disposal programs at health-care facilities of the Department,
including the projected costs associated with such plans and
any barriers to achieving goals associated with such plans.
(4) An assessment or evaluation of the available methods of
disposing of medical waste and identification of which of those
methods are more desirable from an environmental perspective in
that they would be least likely to result in contamination of
air or water or otherwise cause future cleanup problems.
SEC. 402. TECHNICAL AMENDMENTS TO EDUCATION PROGRAM PROVISIONS.
(a) Inapplicability of Wage Requirements for On-Job Training
Programs Leading to Self-Employment.--(1) Section 3677(b) is amended by
adding at the end the following new paragraph:
``(3) Notwithstanding paragraph (1)(A) and subsection (c)(8), no
wages shall be required to be paid an eligible person or veteran by a
training establishment described in section 3452(e)(2) of this
title.''.
(2) Section 3452(e), as amended by section 301 of the Veterans
Benefits Act of 2003 (Public Law 108-183; 117 Stat. 2658), is amended
by striking ``An'' in paragraph (2) and inserting ``For the period
beginning on October 1, 2005, and ending on September 30, 2010, an''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect as if included in the enactment of section 301 of the
Veterans Benefits Act of 2003 (Public Law 108-183; 117 Stat. 2658).
Passed the House of Representatives October 7 (legislative
day, October 6), 2004.
Attest:
Clerk.
108th CONGRESS
2d Session
H. R. 4658
_______________________________________________________________________
AN ACT
To amend the Servicemembers Civil Relief Act to make certain
improvements and technical corrections to that Act, otherwise to
improve legal protections provided to reserve component members called
to active duty, and for other purposes.