To amend title 46, United States Code, to provide a monthly monetary benefit 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.

Summary: Belated Thank You to the Merchant Mariners of World War II Act of 2004 - Directs the Secretary of Veterans Affairs to pay a monthly benefit of $1,000 to certain honorably-discharged veterans of the U.S. Merchant Marine who served between December 7, 1941, and December 31, 1946 (or to their survivors). Includes service in the Army Transport Service and the Naval Transport Service. Exempts benefits paid under this Act from taxation.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Belated Thank You to the Merchant 
Mariners of World War II Act of 2004''.

SEC. 2. BENEFITS FOR WORLD WAR II MERCHANT MARINERS AND SURVIVORS.

    (a) Monthly Benefit.--Chapter 112 of title 46, United States Code, 
is amended--
            (1) by inserting after the table of sections the following 
        new subchapter heading:

       ``SUBCHAPTER I--VETERANS' BURIAL AND CEMETERY BENEFITS'';

    and
            (2) by adding at the end the following new subchapter:

                    ``SUBCHAPTER II--MONTHLY BENEFIT

``Sec. 11205. Monthly benefit
    ``(a) Payment to Eligible Persons.--The Secretary of Veterans 
Affairs shall pay to each person eligible for benefits under section 
11206 of this title a monthly benefit of $1,000.
    ``(b) Surviving Spouses of Eligible Persons.--
            ``(1) Payment to surviving spouses.--The Secretary of 
        Veterans Affairs shall pay to the surviving spouse of each 
        person eligible for benefits under section 11206 of this title 
        a monthly benefit of $1,000.
            ``(2) Exclusion.--No benefit under this subsection shall be 
        paid to a surviving spouse of a person eligible for benefits 
        under section 11206 of this title unless such surviving spouse 
        was married to such eligible person for no less than 1 year.
    ``(c) Children of Eligible Persons.--If there is no surviving 
spouse entitled to benefits under this section, the Secretary of 
Veterans Affairs shall pay to the children of each person eligible for 
benefits under section 11206 of this title a monthly benefit of $1,000, 
equally divided.
    ``(d) Exemption From Taxation.--Payments of benefits under this 
section are exempt from taxation as provided in section 5301(a) of 
title 38.
``Sec. 11206. Eligibility for benefit
    ``(a) Eligible Persons.--A person referred to in subsection (b) who 
has performed qualified service as specified under subsection (c) shall 
be eligible for benefits under section 11205(a) of this title.
    ``(b) Covered Persons.--Subsection (a) applies to a person who 
receives an honorable service certificate under section 11207 of this 
title.
    ``(c) Qualified Service.--A person shall be considered to have 
engaged in qualified service if, between December 7, 1941, and December 
31, 1946--
            ``(1) 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; or
            ``(2) while performing service under paragraph (1), the 
        person was forcibly detained or interned by an enemy government 
        or hostile force as a result of action against a vessel under 
        paragraph (1)(A).
``Sec. 11207. Documentation of qualified service
    ``(a) Application for Service Certificate.--A person seeking 
benefits under section 11205 of this title shall submit an application 
for a service certificate to the Secretary of Transportation, or in the 
case of personnel of the Army Transport Service or the Naval Transport 
Service, the Secretary of Defense.
    ``(b) Issuance of Service Certificate.--The Secretary who receives 
an application under subsection (a) shall issue a certificate of 
honorable service to the applicant if, as determined by that Secretary, 
the person engaged in qualified service under section 11206(c) of this 
title.
    ``(c) Timing of Documentation.--A Secretary receiving an 
application under subsection (a) shall act on the application not later 
than 1 year after the date of that receipt.
    ``(d) Standards Relating to Service.--In making a determination 
under subsection (b), the Secretary acting on the application shall 
apply the same standards relating to the nature and duration of service 
that apply to the issuance of honorable discharges under section 
401(a)(1)(B) of the GI Bill Improvement Act of 1977 (38 U.S.C. 106 
note).
``Sec. 11208. Definitions
    ``In this subchapter, the terms `surviving spouse' and `child' have 
the meanings given those terms in paragraphs (3) and (4), respectively, 
of section 101 of title 38, except that in applying those meanings in 
this subchapter, the term `veteran' shall include a person who 
performed qualified service as specified in section 11206(c) of this 
title.''.
    (b) Conforming Amendments.--Subsection (c) of section 11201 of 
title 46, United States Code, is amended--
            (1) in paragraph (1), by striking ``chapter'' and inserting 
        ``subchapter''; and
            (2) in paragraph (2), by striking ``chapter'' the second 
        place it appears and inserting ``subchapter''.
    (c) Clerical Amendments.--The table of sections at the beginning of 
chapter 112 of title 46, United States Code, is amended--
            (1) by inserting at the beginning the following new item:

       ``subchapter i--veterans' burial and cemetery benefits'';
    and
            (2) by adding at the end the following new items:

                    ``subchapter ii--monthly benefit
``11205. Monthly benefit.
``11206. Eligibility for benefit.
``11207. Documentation of qualified service.
``11208. Definitions.''.
    (d) Effective Date.--Section 11205 of title 46, United States Code, 
as added by subsection (a) of this section, shall take effect with 
respect to payments for periods beginning on or after the date of the 
enactment of this Act, regardless of the date of application for 
benefits.

SEC. 3. AUTHORIZATION OF APPROPRIATION.

    There is authorized to be appropriated to the Department of 
Veterans Affairs such sums as are necessary to carry out this Act.