SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Guard Bonus Repayment and 
Financial Relief Act''.

SEC. 2. WAIVER OF RECOUPMENT OF CERTAIN BONUSES AND SIMILAR BENEFITS 
              ERRONEOUSLY RECEIVED BY MEMBERS OF THE ARMY NATIONAL 
              GUARD.

    (a) Review of Bonuses and Benefits To Determine Erroneous 
Receipt.--The Secretary of the Army shall review all bonuses, incentive 
pays, or similar benefits received by members of the Army National 
Guard during the period beginning on January 1, 2004, and ending on 
December 31, 2010, in order to determine if such bonuses, pays, or 
similar benefits were issued erroneously.
    (b) Action Upon Determination of Erroneous Receipt.--Except as 
provided in subsection (c), if the Secretary determines that any bonus, 
incentive pay, or similar benefit described in subsection (a) was 
issued erroneously, the Secretary shall--
            (1) in the case of a bonus, pay, or benefit for which 
        repayment would otherwise be authorized pursuant to section 
        303a(e) or 373 of title 37, United States Code, as applicable, 
        waive repayment of the bonus, pay, or benefit in the event the 
        member concerned fully satisfies any period of service 
        otherwise agreed to or imposed upon the member in connection 
        with receipt of the bonus, pay, or benefit; and
            (2) in the case of a bonus, pay, or benefit repaid by a 
        member before the date of the enactment of this Act, repay the 
        member the amount so repaid by the member, plus any interest 
        paid by the member in connection with the member's repayment, 
        in the event the member fully satisfies any period of service 
        otherwise agreed to or imposed upon the member in connection 
        with receipt of the bonus, pay, or benefit.
    (c) Exceptions.--Notwithstanding subsection (b), the Secretary may 
require a member of the Army National Guard to repay any bonus, 
incentive pay, or similar benefit described in subsection (a) that was 
issued erroneously if the Secretary determines either of the following:
            (1) That the member knowingly received the bonus, pay, or 
        benefit through fraud or misrepresentation in which the member 
        participated.
            (2) That repayment is otherwise consistent with the 
        provisions of section 303a(e) or 373 of title 37, United States 
        Code, as applicable.
    (d) Additional Actions.--
            (1) In general.--For any member of the Army National Guard 
        granted relief under subsection (b), the Secretary shall--
                    (A) notify all consumer credit reporting agencies 
                that any debt subject to the relief was never valid; 
                and
                    (B) provide assistance, to the extent practicable, 
                to the member if the member has faced or is facing 
                financial hardship as a result of the recoupment 
                actions taken against the member in connection with 
                receipt of the bonus or similar benefit concerned.
            (2) Effect of consumer credit notification.--A consumer 
        reporting agency notified of the invalidity of a debt pursuant 
        to paragraph (1)(A) may not, after the date of the notice, make 
        any consumer report containing any information relating to the 
        debt.
    (e) Source of Funds.--Amount for repayments pursuant to subsection 
(b)(2) shall be derived from applicable current appropriations as if 
such repayments were payments for claims in connection with the 
correction of military records as provided in section 1552(c) of title 
10, United States Code.
    (f) Report.--Not later than 60 days after the completion of the 
review required by subsection (a), the Secretary shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report setting forth the following:
            (1) The number of bonuses, incentive pays, or similar 
        benefits identified through the review as being provided 
        erroneously.
            (2) The number of members of the Army National Guard 
        against whom the Department of Defense proceeded with 
        recoupment for erroneous provision, set forth by basis for 
        recoupment and amount recouped.
            (3) The number of members of the Army National Guard for 
        whom the Department waived recoupment for erroneous provision, 
        set forth by basis of waiver, amount waived, and amount repaid 
        to members whose waiver occurred after recoupment by the 
        Department.
            (4) The number of members of the Army National Guard 
        subject to an exception under subsection (c).
    (g) Definitions.--In this section:
            (1) The term ``bonus, incentive pay, or similar benefit''--
                    (A) has the meaning given that term in section 
                373(d)(1) of title 37, United States Code; and
                    (B) includes a bonus or similar benefit (as that 
                term is defined in section 303a(e) of such title) for 
                which repayment would be authorized pursuant to such 
                section 303a(e).
            (2) The terms ``consumer credit reporting agency'' and 
        ``consumer report'' have the meaning given such terms in 
        section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a).
National Guard Bonus Repayment and Financial Relief Act This bill requires the Army to review all bonuses, incentive pays, or similar benefits received by members of the Army National Guard between January 1, 2004, and December 31, 2010, to determine if such benefits were issued erroneously and to either: (1) waive repayment of such an erroneous payment if the member concerned fully satisfies any period of service otherwise agreed to or imposed upon the member in connection with receipt of the payment; or (2) repay any such erroneous payment and any interest that was repaid by a member before this bill's enactment if the member fully satisfies any such period of service.  The Army may require an Army National Guard member to repay any such erroneous payment upon determining that: (1) the member knowingly received the benefit through fraud or misrepresentation in which the member participated, or (2) repayment is otherwise consistent with provisions governing repayment of unearned pay. For any such member granted relief under this bill, the Army shall: (1) notify all consumer credit reporting agencies that any debt subject to the relief was never valid, and (2) provide assistance to the member facing financial hardship as a result of recoupment actions taken in connection with receipt of the payment. A consumer reporting agency notified of the invalidity of such a debt may not, after the date of notice, make any consumer report containing information relating to the debt.
National Guard Bonus Repayment and Financial Relief Act