Veterans Benefits and Pensions Protection Act of 2003
A bill to amend title 38, United States Code, to clarify the applicability of the prohibition on assignment of veterans benefits to agreements regarding future receipt of compensation, pension, or dependency and indemnity compensation, and for there purposes.
Legislative Activity
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Committee on Veterans' Affairs. Hearings held.
July 10, 2003
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Introduced in Senate
January 30, 2003
Read twice and referred to the Committee on Veterans' Affairs.
January 30, 2003
Committee on Veterans' Affairs. Hearings held.
July 10, 2003
Floor Debate
2 membersWhat members said about S. 257 on the floor


Floor Debate
2 membersWhat members said about S. 257 on the floor
Mr. President, I ask unanimous consent that the Committee on Armed Services be authorized to meet during the session of the Senate on Thursday, July 10, 2003, at 10:00 a.m., in open session to…
Mr. President, I ask unanimous consent that the Committee on Armed Services be authorized to meet during the session of the Senate on Tuesday, September 30, 2003, at 2:30 p.m., in open session, to…
Bill Text
Latest available legislative text
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 257 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 257
To amend title 38, United States Code, to clarify the applicability of
the prohibition on assignment of veterans benefits to agreements
regarding future receipt of compensation, pension, or dependency and
indemnity compensation, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 30, 2003
Mr. Nelson of Florida (for himself, Mr. McCain, Mr. Inouye, Mr. Levin,
Mr. Bingaman, Mr. Kerry, Mr. Breaux, Mr. Conrad, Mr. Johnson, Ms.
Landrieu, Mr. Sessions, and Mr. Nelson of Nebraska) introduced the
following bill; which was read twice and referred to the Committee on
Veterans' Affairs
_______________________________________________________________________
A BILL
To amend title 38, United States Code, to clarify the applicability of
the prohibition on assignment of veterans benefits to agreements
regarding future receipt of compensation, pension, or dependency and
indemnity compensation, 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.
This Act may be cited as the ``Veterans Benefits and Pensions
Protection Act of 2003''.
SEC. 2. APPLICABILITY OF PROHIBITION ON ASSIGNMENT OF VETERANS BENEFITS
TO AGREEMENTS ON FUTURE RECEIPT OF CERTAIN BENEFITS.
(a) In General.--Section 5301(a) of title 38, United States Code,
is amended--
(1) by inserting ``(1)'' after ``(a)'';
(2) by designating the last sentence as paragraph (2) and
indenting such paragraph, as so designated, two ems from the
left margin; and
(3) by adding at the end the following new paragraph:
``(3)(A) For purposes of this subsection, in any case where a
beneficiary entitled to compensation, pension, or dependency and
indemnity compensation enters into an agreement with another person
under which agreement such other person acquires for consideration the
right to receive payment of such compensation, pension, or dependency
and indemnity compensation, as the case may be, whether by payment from
the beneficiary to such other person, deposit into an account from
which such other person may make withdrawals, or otherwise, such
agreement shall be deemed to be an assignment and is prohibited.
``(B) Any agreement or arrangement for collateral for security for
an agreement that is prohibited under subparagraph (A) is also
prohibited.
``(C)(i) Any person who enters into an agreement that is prohibited
under subparagraph (A), or an agreement or arrangement that is
prohibited under subparagraph (B), shall be fined under title 18,
imprisoned for not more than one year, or both.
``(ii) This subparagraph does not apply to a beneficiary with
respect to compensation, pension, or disability and indemnity
compensation to which the beneficiary is entitled under a law
administered by the Secretary.''.
(b) Effective Dates.--(1) Subparagraphs (A) and (B) of paragraph
(3) of section 5301(a) of title 38, United States Code (as added by
subsection (a) of this section), shall apply with respect to any
agreement or arrangement described in such subparagraphs, whether
entered into before, on, or after the date of the enactment of this
Act, and any such agreement or arrangement entered into before the date
of the enactment of this Act is void and unenforceable as of such date.
(2) Subparagraph (C) of such paragraph shall apply with respect to
any agreement or arrangement covered by such subparagraph that is
entered into on or after the date of the enactment of this Act.
(c) Outreach.--The Secretary of Veterans Affairs shall, during the
five-year period beginning on the date of the enactment of this Act,
carry out a program of outreach to inform veterans and other recipients
or potential recipients of compensation, pension, or disability and
indemnity compensation benefits under the laws administered by the
Secretary of the prohibition on the assignability of such benefits
under law. The program shall include information on various schemes to
evade the prohibition, and means of avoiding such schemes.
(d) Authorization of Appropriations.--There is hereby authorized to
be appropriated for the Department of Veterans Affairs for each of
fiscal years 2004 through 2008, $3,000,000 for purposes of carrying out
the program of outreach required by subsection (c).
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