To amend title 46, United States Code, and title II of the Social Security Act to provide benefits 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 2005 - 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.

Provides for benefits for World War II Merchant Mariners under title II (Old Age, Survivors, and Disability Insurance) (OASDI) of the Social Security Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Belated Thank You to the Merchant 
Mariners of World War II Act of 2005''.

SEC. 2. MONTHLY BENEFIT FOR WORLD WAR II MERCHANT MARINERS AND 
              SURVIVORS UNDER TITLE 46, UNITED STATES CODE.

    (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.--The Secretary of Veterans Affairs shall pay to each 
person issued a certificate of honorable service pursuant to section 
11207(b) of this title a monthly benefit of $1,000.
    ``(b) Surviving Spouses.--
            ``(1) Payment to surviving spouses.--The Secretary of 
        Veterans Affairs shall pay to the surviving spouse of each 
        person issued a certificate of honorable service pursuant to 
        section 11207(b) of this title a monthly benefit of $1,000.
            ``(2) Exclusion.--No benefit shall be paid under paragraph 
        (1) to a surviving spouse of a person issued a certificate of 
        honorable service pursuant to section 11207(b) unless the 
        surviving spouse was married to such person for no less than 1 
        year.
    ``(c) Exemption From Taxation.--Payments of benefits under this 
section are exempt from taxation as provided in section 5301(a) of 
title 38.
``Sec. 11206. Qualified service
    ``For purposes of this subchapter, a person shall be considered to 
have engaged in qualified service if, between December 7, 1941, and 
December 31, 1946, the person--
            ``(1) 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--
                    ``(A) operated by the War Shipping Administration 
                or the Office of Defense Transportation (or an agent of 
                such Administration or Office);
                    ``(B) operated in waters other than--
                            ``(i) inland waters;
                            ``(ii) the Great Lakes; and
                            ``(iii) other lakes, bays, and harbors of 
                        the United States;
                    ``(C) under contract or charter to, or property of, 
                the Government of the United States; and
                    ``(D) serving the Armed Forces; and
            ``(2) while serving as described in paragraph (1), 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.
``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 of this 
title and meets the standards referred to in subsection (d) of this 
section.
    ``(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 term `surviving spouse' has the meaning 
given such term in section 101 of title 38, except that in applying the 
meaning in this subchapter, the term `veteran' shall include a person 
who performed qualified service as specified in section 11206 of this 
title.
``Sec. 11209. Authorization of appropriations
    ``There are authorized to be appropriated to the Secretary of 
Veterans Affairs such sums as may be necessary for the purpose of 
carrying out this subchapter.''.
    (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. Qualified service.
``11207. Documentation of qualified service.
``11208. Definitions.
``11209. Authorization of appropriations.''.
    (d) Effective Date.--Subchapter II of chapter 112 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. BENEFITS FOR WORLD WAR II MERCHANT MARINERS UNDER TITLE II OF 
              THE SOCIAL SECURITY ACT.

    (a) Benefits.--Section 217(d) of the Social Security Act (42 U.S.C. 
417(d)) is amended by adding at the end the following new paragraph:
            ``(3) The term `active military or naval service' includes 
        the service, or any period of forcible detention or internment 
        by an enemy government or hostile force as a result of action 
        against a vessel described in subparagraph (A), of a person 
        who--
                    ``(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 such 
                        Administration or Office);
                            ``(ii) operated in waters other than--
                                    ``(I) inland waters;
                                    ``(II) the Great Lakes; and
                                    ``(III) 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 serving as described in subparagraph 
                (A), 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.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply only with respect to benefits for months beginning on or after 
the date of the enactment of this Act.