To amend title 38, United States Code, to increase burial benefits for veterans, and for other purposes.

Summary: Veterans Burial Benefits Improvement Act of 2012 - Increases the authorized allowance for burial and funeral expenses for deceased veterans who: (1) at the time of death were in receipt of veterans' disability compensation or veterans' pension benefits, or (2) were veterans of any war or were discharged or released from active military service for a service-connected disability and have no next of kin or sufficient resources to cover funeral and burial costs. Increases the burial and funeral allowances for veterans who: (1) at the time of death, were receiving hospital or nursing home care in or through the Department of Veterans Affairs (VA); or (2) die as a result of a service-connected disability. Authorizes the annual adjustment of such allowances by the same percentage increase as adjustments to benefit amounts payable under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act.

Authorizes a burial plot allowance, as well as reimbursement for a burial headstone or marker, for a veteran of any war.

Authorizes the VA to cover the burial and funeral expenses of a deceased veteran: (1) who is homeless, has no next of kin or other person claiming the body, and does not have sufficient resources to cover such expenses; (2) whose service in the Armed Forces was not during wartime; and (3) who was either discharged under honorable conditions or died during a period deemed to be active service. Prohibits any deduction from the burial allowance because of a veteran's assets or because of any contribution toward the burial and funeral expenses, unless the expenses incurred are covered by the United States, a state, an agency or political subdivision of the United States or a state, or the veteran's employer.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Burial Benefits Improvement 
Act of 2012''.

SEC. 2. INCREASE IN BURIAL BENEFITS FOR VETERANS.

    (a) Burial and Funeral Expenses.--(1) Section 2302(a) of title 38, 
United States Code, is amended by striking ``$300'' and inserting 
``$3,000 (as increased from time to time under section 5312(a) of this 
title)''.
    (2) Section 2303(a)(1)(A) of such title is amended by striking 
``$700'' and inserting ``$3,000''.
    (3) Section 2307 of such title is amended by striking ``$2,000,'' 
and inserting ``$4,000 (as increased from time to time under section 
5312(a) of this title),''.
    (b) Plot Allowance.--Section 2303(b) of such title is amended--
            (1) in paragraph (1), by striking ``$700'' and inserting 
        ``$800''; and
            (2) in paragraph (2), by striking ``$700'' the second place 
        it appears and inserting ``$800''.
    (c) Annual Adjustment.--Section 5312(a) of such title is amended by 
striking ``and each rate of monthly allowance paid under section 1805 
of this title,'' and inserting ``each rate of monthly allowance paid 
under section 1805 of this title, each rate of burial and funeral 
expenses provided for under sections 2302(a) and 2307 of this title, 
and each rate of plot allowance provided for under section 2303(b) of 
this title,''.
    (d) Effective Date.--(1) Except as provided in paragraph (2), the 
amendments made by this section shall apply to deaths occurring on or 
after the date of the enactment of this Act.
    (2) No adjustments shall be made under section 5312(a) of title 38, 
United States Code, as amended by subsection (c), for fiscal year 2012 
for rates of burial and funeral expenses provided for under sections 
2302(a) and 2307 of title 38, United States Code.

SEC. 3. RESTORATION OF VETERAN PLOT ALLOWANCE ELIGIBILITY AND HEADSTONE 
              OR MARKER ALLOWANCE.

    (a) Restoration of Plot Allowance Eligibility for Veterans of Any 
War.--Section 2303(b) of title 38, United States Code, is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``subsection (a) of this section'' and all that follows through 
        ``and who'' and inserting the following: ``subsection (a), in 
        the case of a veteran who is eligible for a burial allowance 
        under such subsection or under section 2302 of this title, who 
        was discharged from the active military, naval, or air service 
        for a disability incurred or aggravated in the line of duty, or 
        who is a veteran of any war and''; and
            (2) in paragraph (2)--
                    (A) by striking ``is eligible for a burial 
                allowance under section 2302 of this title or under 
                subsection (a) of this section, or was discharged from 
                the active military, naval, or air service for a 
                disability incurred or aggravated in line of duty, and 
                such veteran''; and
                    (B) by striking ``clause (1) of this subsection'' 
                and inserting ``paragraph (1)''.
    (b) Restoration of Headstone or Marker Allowance.--
            (1) Allowance.--Section 2306 of title 38, United States 
        Code, is amended by adding at the end the following new 
        subsection:
    ``(h) In lieu of furnishing a headstone or marker under subsection 
(a)(2) or (b), the Secretary, in the Secretary's discretion, having due 
regard for the circumstances in each case, may reimburse the person 
entitled to request such headstone or marker for the cost of acquiring 
a non-Government headstone or marker for placement in any cemetery 
other than a national cemetery in connection with the burial or 
memorialization of the deceased individual.''.
            (2) Conforming amendment.--Subsection (g) of such section 
        is amended by adding at the end the following new paragraph:
    ``(4) Reimbursement may not be provided under subsection (h) for 
the cost of acquiring a non-Government headstone or marker in 
connection with the burial or memorialization of a person described in 
section 2411(b) of this title.''.
            (3) Clerical amendment.--Subsection (a) of such section is 
        amended by moving the margin of each of paragraphs (1) through 
        (5) by two ems to the right.
            (4) Effective date.--The amendments made by this subsection 
        shall apply with respect to deaths occurring on or after the 
        date of the enactment of this Act.

SEC. 4. EXPANSION OF BURIAL BENEFITS FOR VETERANS.

    (a) Homeless Veterans.--
            (1) In general.--Chapter 23 of such title is amended by 
        inserting after section 2302 the following new section:
``Sec. 2302A. Funeral expenses for homeless veterans not serving during 
              wartime
    ``(a) Payment of Funeral Expenses.--The Secretary, in the 
Secretary's discretion, having due regard to the circumstances in each 
case, may pay a sum not exceeding the amount authorized under section 
2302(a) of this title to such person as the Secretary prescribes to 
cover the burial and funeral expenses of a deceased veteran described 
in subsection (b) and the expense of preparing the body and 
transporting it to the place of burial.
    ``(b) Homeless Veteran.--A deceased veteran described in this 
subsection is an individual--
            ``(1) whom the Secretary determines--
                    ``(A) is a homeless veteran (as defined in section 
                2002(1) of this title);
                    ``(B) has no next of kin or other person claiming 
                the body of the deceased veteran; and
                    ``(C) does not have available sufficient resources 
                to cover burial and funeral expenses;
            ``(2) whose service in the Armed Forces was not during 
        wartime; and
            ``(3) who was either--
                    ``(A) discharged from the active military, naval, 
                or air service under honorable conditions; or
                    ``(B) died during a period deemed to be active 
                military, naval, or air service under section 106(c) of 
                this title.
    ``(c) Deductions.--(1) Except as provided in this subsection, no 
deduction shall be made from the burial allowance because of the 
veteran's net assets at the time of the death of such veteran, or 
because of any contribution from any source toward the burial and 
funeral expenses (including transportation) unless the amount of 
expenses incurred is covered by the amount actually paid therefore by 
the United States, a State, any agency or political subdivision of the 
United States or of a State, or the employer of the deceased veteran.
    ``(2) No claim shall be allowed--
            ``(A) for more than the difference between the entire 
        amount of the expenses incurred and an amount paid by the 
        United States, a State, any agency or political subdivision of 
        the United States or of a State, or the employer of the 
        deceased veteran, as described in paragraph (1);
            ``(B) when the burial allowance would revert to the funds 
        of a public or private organization or would discharge such an 
        organization's obligation without payment; or
            ``(C) in any case where payment of expenses of funeral, 
        transportation, and interment for the veteran is made under any 
        other Act.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 2302 the following new item:

``2302A. Funeral expenses for homeless veterans not serving during 
                            wartime.''.
    (b) Effective Date.--The amendment made by subsection (a)(1) shall 
apply to deaths occurring on or after the date of the enactment of this 
Act.