To amend title 38, United States Code, to improve the determination of annual income with respect to pensions for certain veterans, to direct the Secretary of Veterans Affairs to establish a pilot program to assess the skills of certain employees and managers of the Veterans Benefits Administration, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans' Benefits Act of 2011''.

SEC. 2. ASSESSMENT OF CLAIMS-PROCESSING SKILLS PILOT PROGRAM.

    (a) Pilot Program.--Commencing not later than 180 days after the 
date of the enactment of this Act, in addition to providing employee 
certification under section 7732A of title 38, United States Code, the 
Secretary of Veterans Affairs shall carry out a pilot program to assess 
skills and provide training described under subsection (b).
    (b) Biennial Skills Assessment and Individualized Training.--
            (1) In general.--The Secretary shall--
                    (A) biennially assess the skills of appropriate 
                employees and managers of the Veterans Benefits 
                Administration who are responsible for processing 
                claims for compensation and pension benefits under the 
                laws administered by the Secretary, including by 
                requiring such employees and managers to take the 
                examination provided under section 7732A(a)(1) of title 
                38, United States Code; and
                    (B) on the basis of the results of such assessment 
                and examination, and on any relevant regional office 
                quality review, develop and implement an individualized 
                training plan related to such skills for each such 
                employee and manager.
            (2) Remediation.--
                    (A) Remediation provided.--In providing training 
                under paragraph (1)(B), if any employee or manager 
                receives a less than satisfactory result on any portion 
                of an assessment under paragraph (1)(A), the Secretary 
                shall provide such employee or manager with remediation 
                of any deficiency in the skills related to such portion 
                of the assessment and, within a reasonable period 
                following the remediation, shall require the employee 
                or manager to take the examination again.
                    (B) Personnel actions.--In accordance with titles 5 
                and 38, United States Code, the Secretary shall take 
                appropriate personnel actions with respect to any 
                employee or manager who, after being given two 
                opportunities for remediation under subparagraph (A), 
                does not receive a satisfactory result on an assessment 
                under paragraph (1)(A).
    (c) Locations and Duration.--The Secretary shall carry out the 
pilot program under this section at five regional offices of the 
Veterans Benefits Administration during the four-year period beginning 
on the date of the commencement of the pilot program.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section a total of $5,000,000 for fiscal 
years 2012 through 2016.
    (e) Reports.--Not later than November 1 of each year in which the 
pilot program under this section is carried out, the Secretary shall 
submit to the Committee on Veterans' Affairs of the House of 
Representatives and the Committee on Veterans' Affairs of the Senate a 
report on any assessments and training conducted under this section 
during the previous year. Each such report shall include--
            (1) a summary of--
                    (A) the results of the assessments under subsection 
                (b)(1)(A);
                    (B) remediation provided under subsection 
                (b)(2)(A); and
                    (C) personnel actions taken under subsection 
                (b)(2)(B); and
            (2) any changes made to the training program under 
        subsection (b)(1)(B) based on the results of such assessments 
        and remediation and the examinations provided under section 
        7732A(a)(1) of title 38, United States Code.

SEC. 3. EXCLUSION OF CERTAIN REIMBURSEMENTS OF EXPENSES FROM 
              DETERMINATION OF ANNUAL INCOME WITH RESPECT TO PENSIONS 
              FOR VETERANS AND SURVIVING SPOUSES AND CHILDREN OF 
              VETERANS.

    (a) In General.--Paragraph (5) of section 1503(a) of title 38, 
United States Code, is amended to read as follows:
            ``(5) payments regarding--
                    ``(A) reimbursements of any kind (including 
                insurance settlement payments) for--
                            ``(i) expenses related to the repayment, 
                        replacement, or repair of equipment, vehicles, 
                        items, money, or property resulting from--
                                    ``(I) any accident (as defined in 
                                regulations which the Secretary shall 
                                prescribe), but the amount excluded 
                                under this subclause shall not exceed 
                                the greater of the fair market value or 
                                reasonable replacement value of the 
                                equipment or vehicle involved at the 
                                time immediately preceding the 
                                accident;
                                    ``(II) any theft or loss (as 
                                defined in regulations which the 
                                Secretary shall prescribe), but the 
                                amount excluded under this subclause 
                                shall not exceed the greater of the 
                                fair market value or reasonable 
                                replacement value of the item or the 
                                amount of the money (including legal 
                                tender of the United States or of a 
                                foreign country) involved at the time 
                                immediately preceding the theft or 
                                loss; or
                                    ``(III) any casualty loss (as 
                                defined in regulations which the 
                                Secretary shall prescribe), but the 
                                amount excluded under this subclause 
                                shall not exceed the greater of the 
                                fair market value or reasonable 
                                replacement value of the property 
                                involved at the time immediately 
                                preceding the casualty loss; and
                            ``(ii) medical expenses resulting from any 
                        accident, theft, loss, or casualty loss (as 
                        defined in regulations which the Secretary 
                        shall prescribe), but the amount excluded under 
                        this clause shall not exceed the costs of 
                        medical care provided to the victim of the 
                        accident, theft, loss, or casualty loss; and
                    ``(B) pain and suffering (including insurance 
                settlement payments and general damages awarded by a 
                court) related to an accident, theft, loss, or casualty 
                loss, but the amount excluded under this subparagraph 
                shall not exceed an amount determined by the Secretary 
                on a case-by-case basis;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date that is one year after the date of the 
enactment of this Act.
    (c) Extension of Authority to Obtain Certain Information From 
Department of Treasury.--Section 5317(g) of title 38, United States 
Code, is amended by striking ``2011'' and inserting ``2013''.

SEC. 4. AUTHORIZATION OF USE OF ELECTRONIC COMMUNICATION TO PROVIDE 
              NOTICE TO CLAIMANTS FOR BENEFITS UNDER LAWS ADMINISTERED 
              BY THE SECRETARY OF VETERANS AFFAIRS.

    (a) In General.--Section 5103 of title 38, United States Code, is 
amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``Upon receipt of a complete or 
                substantially complete application, the'' and inserting 
                ``The'';
                    (B) by striking ``notify'' and inserting ``provide 
                to''; and
                    (C) by inserting ``by the most effective means 
                available, including electronic communication or 
                notification in writing'' before ``of any 
                information''; and
            (2) in subsection (b), by adding at the end the following 
        new paragraphs:
    ``(4) Nothing in this section shall require the Secretary to 
provide notice for a subsequent claim that is filed while a previous 
claim is pending if the notice previously provided for such pending 
claim--
            ``(A) provides sufficient notice of the information and 
        evidence necessary to substantiate such subsequent claim; and
            ``(B) was sent within one year of the date on which the 
        subsequent claim was filed.
    ``(5)(A) This section shall not apply to any claim or issue where 
the Secretary may award the maximum benefit in accordance with this 
title based on the evidence of record.
    ``(B) For purposes of this paragraph, the term `maximum benefit' 
means the highest evaluation assignable in accordance with the evidence 
of record, as long as such evaluation is supported by such evidence of 
record at the time the decision is rendered.''.
    (b) Construction.--Nothing in the amendments made by subsection (a) 
shall be construed as eliminating any requirement with respect to the 
contents of a notice under section 5103 of such title that are required 
under regulations prescribed pursuant to subsection (a)(2) of such 
section as of the date of the enactment of this Act.

SEC. 5. DUTY TO ASSIST CLAIMANTS IN OBTAINING PRIVATE RECORDS.

    (a) In General.--Section 5103A(b) of title 38, United States Code, 
is amended to read as follows:
    ``(b) Assistance in Obtaining Private Records.--(1) As part of the 
assistance provided under subsection (a), the Secretary shall make 
reasonable efforts to obtain relevant private records.
    ``(2)(A) Whenever the Secretary, after making such reasonable 
efforts, is unable to obtain all of the relevant records sought, the 
Secretary shall notify the claimant that the Secretary is unable to 
obtain records with respect to the claim. Such a notification shall--
            ``(i) identify the records the Secretary is unable to 
        obtain;
            ``(ii) briefly explain the efforts that the Secretary made 
        to obtain such records; and
            ``(iii) explain that the Secretary will decide the claim 
        based on the evidence of record but that this section does not 
        prohibit the submission of records at a later date if such 
        submission is otherwise allowed.
    ``(B) The Secretary shall make not less than two requests to a 
custodian of a private record in order for an effort to obtain relevant 
private records to be treated as reasonable under this section, unless 
it is made evident by the first request that a second request would be 
futile in obtaining such records.
    ``(3)(A) This section shall not apply if the evidence of record 
allows for the Secretary to award the maximum benefit in accordance 
with this title based on the evidence of record.
    ``(B) For purposes of this paragraph, the term `maximum benefit' 
means the highest evaluation assignable in accordance with the evidence 
of record, as long as such evaluation is supported by such evidence of 
record at the time the decision is rendered.
    ``(4) Under regulations prescribed by the Secretary, the 
Secretary--
            ``(A) shall encourage claimants to submit relevant private 
        medical records of the claimant to the Secretary if such 
        submission does not burden the claimant; and
            ``(B) in obtaining relevant private records under paragraph 
        (1), may require the claimant to authorize the Secretary to 
        obtain such records if such authorization is required to comply 
        with Federal, State, or local law.''.
    (b) Public Records.--Section 5103A(c) of such title is amended to 
read as follows:
    ``(c) Obtaining Records for Compensation Claims.--(1) In the case 
of a claim for disability compensation, the assistance provided by the 
Secretary under this section shall include obtaining the following 
records if relevant to the claim:
            ``(A) The claimant's service medical records and, if the 
        claimant has furnished the Secretary information sufficient to 
        locate such records, other relevant records pertaining to the 
        claimant's active military, naval, or air service that are held 
        or maintained by a governmental entity.
            ``(B) Records of relevant medical treatment or examination 
        of the claimant at Department health-care facilities or at the 
        expense of the Department, if the claimant furnishes 
        information sufficient to locate those records.
            ``(C) Any other relevant records held by any Federal 
        department or agency that the claimant adequately identifies 
        and authorizes the Secretary to obtain.
    ``(2) Whenever the Secretary attempts to obtain records from a 
Federal department or agency under this subsection, the efforts to 
obtain those records shall continue until the records are obtained 
unless it is reasonably certain that such records do not exist or that 
further efforts to obtain those records would be futile.''.

SEC. 6. CONDITIONS FOR TREATMENT OF CERTAIN PERSONS AS ADJUDICATED 
              MENTALLY INCOMPETENT FOR CERTAIN PURPOSES.

    (a) In General.--Chapter 55 of title 38, United States Code, is 
amended by adding at the end the following new section:
``Sec. 5511. Conditions for treatment of certain persons as adjudicated 
              mentally incompetent for certain purposes
    ``In any case arising out of the administration by the Secretary of 
laws and benefits under this title, a person who is mentally 
incapacitated, deemed mentally incompetent, or experiencing an extended 
loss of consciousness shall not be considered adjudicated as a mental 
defective under subsection (d)(4) or (g)(4) of section 922 of title 18 
without the order or finding of a judge, magistrate, or other judicial 
authority of competent jurisdiction that such person is a danger to 
himself or herself or others.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 55 of such title is amended by adding at the end the following 
new item:

``5511. Conditions for treatment of certain persons as adjudicated 
                            mentally incompetent for certain 
                            purposes.''.

SEC. 7. REINSTATEMENT OF PENALTIES FOR CHARGING VETERANS UNAUTHORIZED 
              FEES.

    (a) In General.--Section 5905 of title 38, United States Code, is 
amended to read as follows:
``Sec. 5905. Penalty for certain acts
    ``Except as provided in section 5904 or 1984 of this title, 
whoever--
            ``(1) in connection with a proceeding before the 
        Department, knowingly solicits, contracts for, charges, or 
        receives any fee or compensation in connection for--
                    ``(A) the provision of advice on how to file a 
                claim for benefits under the laws administered by the 
                Secretary; or
                    ``(B) the preparation, presentation, or prosecution 
                of such a claim before the date on which a notice of 
                disagreement is filed in a proceeding on the claim,
        or attempts to do so;
            ``(2) unlawfully withholds from any claimant or beneficiary 
        any part of a benefit or claim under the laws administered by 
        the Secretary that is allowed and due to the claimant or 
        beneficiary, or attempts to do so;
            ``(3) commits an offense punishable by this chapter, or 
        aids, abets, counsels, commands, or procures the commission of 
        such an act; or
            ``(4) causes an act to be done, which if directly performed 
        would be punishable by this chapter,
shall be fined as provided in title 18, or imprisoned for not more than 
one year, or both.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to acts committed after the date of the enactment of 
this Act.

SEC. 8. PERFORMANCE AWARDS IN THE SENIOR EXECUTIVE SERVICE.

    For each of fiscal years 2012 through 2016, the Secretary of 
Veterans Affairs may not pay more than $2,000,000 in performance awards 
under section 5384 of title 5, United States Code.

SEC. 9. BUDGETARY EFFECTS OF THIS ACT.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

            Passed the House of Representatives October 11, 2011.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: Veterans' Benefits Act of 2011 - Directs the Secretary of Veterans Affairs (VA) to conduct a four-year pilot program to: (1) biennially assess the skills of appropriate Veterans Benefits Administration employees and managers responsible for processing VA compensation and pension benefit claims. (2) develop and implement individualized training plans related to such skills. (3) provide remediation for deficiently skilled employees or managers receiving a less than satisfactory result on any portion of the assessment. And (4) take appropriate disciplinary actions with respect to individuals failing to receive a satisfactory result after being given two opportunities for such remediation. Authorizes appropriations. Requires the Secretary to report annually during the program period to the congressional veterans committees on such assessment and the training conducted. Excludes from annual income, for purposes of eligibility for pensions for veterans and their surviving spouses and children, reimbursements resulting from: (1) any accident, (2) any theft or loss, (3) any casualty loss. (4) medical expenses resulting from any such accident, theft, or loss. And (5) pain and suffering related to such accident, theft, or loss. Extends through November 18, 2011, VA authority to obtain veterans' income verification information from the Secretary of the Treasury or the Commissioner of Social Security. Directs the Secretary to notify VA benefits claimants by the most effective means available, including electronic communication or notification in writing, of any information or medical or lay evidence not previously provided to the Secretary that is necessary to substantiate a claim. Requires the Secretary, in assisting claimants in obtaining relevant records in support of a claim, to make at least two requests to a custodian of a private medical record, unless it is made evident by the first request that a second request would be futile. Directs the Secretary to encourage claimants to submit relevant private medical records if such submission does not burden the claimant. Allows the claimant to instead authorize the Secretary to obtain such records. Provides procedures for the obtaining of public records by the Secretary. Prohibits, in any case arising out of the administration of laws and benefits by VA, considering any person who is mentally incapacitated, deemed mentally incompetent, or experiencing an extended loss of consciousness from being considered adjudicated as a mental defective for purposes of the right to receive or transport firearms without the order or finding of a judge, magistrate, or other judicial authority of competent jurisdiction that such person is a danger to himself or herself or others. Provides criminal penalties against any person who solicits, contracts for, charges, or receives any fee or compensation from a veteran, other than that currently permitted under law, for: (1) advice on how to file a benefits claim. Or (2) the preparation, presentation, or prosecution of a claim before the date on which a notice of disagreement is filed in a proceeding on the claim. Prohibits the Secretary from paying more than $2 million in Senior Executive Service performance awards for each of FY2012-FY2016.