113TH CONGRESS 

1ST SESSION H. R. 2481 

AN ACT 

To make certain improvements in the laws administered by 

the Secretary of Veterans Affairs relating to benefits, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Veterans Economic Opportunity Act of 2013’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. References to title 38, United States Code. 

Sec. 3. Scoring of budgetary effects. 

Sec. 4. Establishment of Veterans Economic Opportunity Administration of Department of Veterans Affairs. 

Sec. 5. Under Secretary for Veterans Economic Opportunity. 

Sec. 6. Five-year extension of homeless veterans reintegration programs. 

Sec. 7. Entitlement of children of certain deceased veterans to educational assistance under the Post-9/11 Educational Assistance Program 

of the Department of Veterans Affairs. 

Sec. 8. Recodification and improvement of election process for Post-9/11 Educational Assistance Program. 

Sec. 9. Centralized reporting of veteran enrollment by certain groups, districts, 

and consortiums of educational institutions. 

Sec. 10. Extension of loan guaranty fee for certain subsequent loans. 

Sec. 11. Mortgage protection for members of the Armed Forces, surviving 

spouses, and certain veterans. 

Sec. 12. Treatment of relocation for active duty for purposes of mortgage refinancing. 

Sec. 13. Requirements for lending institutions that are creditors for obligations 

and liabilities covered by the Servicemembers Civil Relief Act. 

Sec. 14. Protection of child custody arrangements for parents who are members 

of the Armed Forces. 

6 SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE. 

7 Except as otherwise expressly provided, whenever in 

8 this Act an amendment or repeal is expressed in terms 

9 of an amendment to , or repeal of, a section or other provi10 sion, the reference shall be considered to be made to a 

11 section or other provision of title 38 , United States Code. 

12 SEC. 3. SCORING OF BUDGETARY EFFECTS. 

13 The budgetary effects of this Act, for the purpose of 

14 complying with the Statutory Pay-As-You-Go Act of 2010, 

15 shall be determined by reference to the latest statement 
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1 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

2 Act, submitted for printing in the Congressional Record 

3 by the Chairman of the House Budget Committee, pro4 vided that such statement has been submitted prior to the 

5 vote on passage. 

6 SEC. 4. ESTABLISHMENT OF VETERANS ECONOMIC OPPOR7 TUNITY ADMINISTRATION OF DEPARTMENT 

8 OF VETERANS AFFAIRS. 

9 (a) ECONOMIC OPPORTUNITY ADMINISTRATION.— 

10 (1) IN GENERAL.—Part V is amended by add11 ing at the end the following new chapter: 

12 ‘‘CHAPTER 80—VETERANS ECONOMIC 

13 OPPORTUNITY ADMINISTRATION 

‘‘8001. Organization of Administration. 

‘‘8002. Functions of Administration. 

14 ‘‘§ 8001. Organization of Administration 

15 ‘‘(a) VETERANS ECONOMIC OPPORTUNITY ADMINIS16 TRATION.—There is in the Department of Veterans Af17 fairs a Veterans Economic Opportunity Administration. 

18 The primary function of the Veterans Economic Oppor19 tunity Administration is the administration of the pro20 grams of the Department which provide assistance related 

21 to economic opportunity to veterans and their dependents 

22 and survivors. 

23 ‘‘(b) UNDER SECRETARY FOR ECONOMIC OPPOR24 TUNITY.—The Veterans Economic Opportunity Adminis-
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1 tration is under the Under Secretary for Veterans Eco2 nomic Opportunity, who is directly responsible to the Sec3 retary for the operations of the Administration. 

4 ‘‘§ 8002. Functions of Administration 

5 ‘‘The Veterans Economic Opportunity Administra6 tion is responsible for the administration of the following 

7 programs of the Department: 

8 ‘‘(1) Vocational rehabilitation and employment 

9 programs. 

10 ‘‘(2) Educational assistance programs. 

11 ‘‘(3) Veterans’ housing loan and related pro12 grams. 

13 ‘‘(4) The veterans small business program 

14 under section 8127 of this title.’’. 

15 (2) CLERICAL AMENDMENTS.—The tables of 

16 chapters at the beginning of title 38, United States 

17 Code, and of part V of title 38, United States Code, 

18 are each amended by inserting after the item relat19 ing to chapter 79 the following new item: 

‘‘80. Veterans Economic Opportunity Administration ........ 8001’’. 

20 (b) EFFECTIVE DATE.—Chapter 80 of title 38, 

21 United States Code, as added by subsection (a) shall take 

22 effect on October 1, 2014. 

23 SEC. 5. UNDER SECRETARY FOR VETERANS ECONOMIC OP24 PORTUNITY. 

25 (a) UNDER SECRETARY.— 
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1 (1) IN GENERAL.—Chapter 3 is amended by in2 serting after section 306 the following new section: 

3 ‘‘§ 306A. Under Secretary for Veterans Economic Op4 portunity 

5 ‘‘(a) UNDER SECRETARY.—There is in the Depart6 ment an Under Secretary for Veterans Economic Oppor7 tunity, who is appointed by the President, by and with 

8 the advice and consent of the Senate. The Under Sec9 retary for Veterans Economic Opportunity shall be ap10 pointed without regard to political affiliation or activity 

11 and solely on the basis of demonstrated ability in— 

12 ‘‘(1) information technology; and 

13 ‘‘(2) the administration of programs within the 

14 Veterans Economic Opportunity Administration or 

15 programs of similar content and scope. 

16 ‘‘(b) RESPONSIBILITIES.—The Under Secretary for 

17 Veterans Economic Opportunity is the head of, and is di18 rectly responsible to the Secretary for the operations of, 

19 the Veterans Economic Opportunity Administration. 

20 ‘‘(c) VACANCIES.—(1) Whenever a vacancy in the po21 sition of Under Secretary for Veterans Economic Oppor22 tunity occurs or is anticipated, the Secretary shall estab23 lish a commission to recommend individuals to the Presi24 dent for appointment to the position. 
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1 ‘‘(2) A commission established under this subsection 

2 shall be composed of the following members appointed by 

3 the Secretary: 

4 ‘‘(A) Three persons representing education and 

5 training, vocational rehabilitation, employment, real 

6 estate, mortgage finance and related industries, and 

7 survivor benefits activities affected by the Veterans 

8 Economic Opportunity Administration. 

9 ‘‘(B) Two persons representing veterans served 

10 by the Veterans Economic Opportunity Administra11 tion. 

12 ‘‘(C) Two persons who have experience in the 

13 management of private sector benefits programs of 

14 similar content and scope to the economic oppor15 tunity programs of the Department. 

16 ‘‘(D) The Deputy Secretary of Veterans Affairs. 

17 ‘‘(E) The chairman of the Veterans’ Advisory 

18 Committee on Education formed under section 3692 

19 of this title. 

20 ‘‘(F) One person who has held the position of 

21 Under Secretary for Veterans Economic Oppor22 tunity, if the Secretary determines that it is desir23 able for such person to be a member of the commis24 sion. 
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1 ‘‘(3) A commission established under this subsection 

2 shall recommend at least three individuals for appoint3 ment to the position of Under Secretary for Veterans Eco4 nomic Opportunity. The commission shall submit all rec5 ommendations to the Secretary. The Secretary shall for6 ward the recommendations to the President and the Com7 mittees on Veterans’ Affairs of the Senate and House of 

8 Representatives with any comments the Secretary con9 siders appropriate. Thereafter, the President may request 

10 the commission to recommend additional individuals for 

11 appointment. 

12 ‘‘(4) The Assistant Secretary or Deputy Assistant 

13 Secretary of Veterans Affairs who performs personnel 

14 management and labor relations functions shall serve as 

15 the executive secretary of a commission established under 

16 this subsection. 

17 ‘‘(d) QUALIFICATIONS OF RECOMMENDED INDIVID18 UALS.—Each individual recommended to the President by 

19 the commission for appointment to the position of Under 

20 Secretary for Veterans Economic Opportunity shall be an 

21 individual who has held a senior level position in the pri22 vate sector with responsibilities relating to at least one of 

23 the following: 

24 ‘‘(1) Education policy. 

25 ‘‘(2) Vocational rehabilitation. 
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1 ‘‘(3) Employment. 

2 ‘‘(4) Home loan finance. 

3 ‘‘(5) Small business development.’’. 

4 (2) CLERICAL AMENDMENT.—The table of sec5 tions at the beginning of such chapter is amended 

6 by inserting after the item relating to section 306 

7 the following new item: 

‘‘306A. Under Secretary for Veterans Economic Opportunity.’’. 

8 (b) CONFORMING AMENDMENTS.—Title 38, United 

9 States Code, is further amended— 

10 (1) in section 306(c)(2), by striking subpara11 graphs (A) and (E) and redesignating subpara12 graphs (B), (C), (D), and (F), as subparagraphs (A) 

13 through (D), respectively; 

14 (2) in section 317(d), by inserting after ‘‘Under 

15 Secretary for Benefits,’’ the following: ‘‘the Under 

16 Secretary for Veterans Economic Opportunity,’’; 

17 (3) in section 318(d)(2), by inserting after 

18 ‘‘Under Secretary for Benefits,’’ the following: ‘‘the 

19 Under Secretary for Veterans Economic Oppor20 tunity,’’; 

21 (4) in section 516(e)(2)(C), by striking ‘‘Health 

22 and the Under Secretary for Benefits’’ and inserting 

23 ‘‘Health, the Under Secretary for Benefits, and the 

24 Under Secretary for Veterans Economic Oppor25 tunity’’; 
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1 (5) in section 541(a)(2)(B), by striking ‘‘Health 

2 and the Under Secretary for Benefits’’ and inserting 

3 ‘‘Health, the Under Secretary for Benefits, and the 

4 Under Secretary for Veterans Economic Oppor5 tunity’’; 

6 (6) in section 542(a)(2)(B)(iii), by striking 

7 ‘‘Health and the Under Secretary for Benefits’’ and 

8 inserting ‘‘Health, the Under Secretary for Benefits, 

9 and the Under Secretary for Veterans Economic Op10 portunity’’; 

11 (7) in section 544(a)(2)(B)(vi), by striking 

12 ‘‘Health and the Under Secretary for Benefits’’ and 

13 inserting ‘‘Health, the Under Secretary for Benefits, 

14 and the Under Secretary for Veterans Economic Op15 portunity’’; 

16 (8) in section 709(c)(2)(A), by inserting after 

17 ‘‘Under Secretary for Benefits,’’ the following: ‘‘the 

18 Under Secretary for Veterans Economic Oppor19 tunity,’’. 

20 (9) in section 7701(a), by inserting after ‘‘as21 sistance’’ the following: ‘‘, other than assistance re22 lated to economic opportunity,’’; and 

23 (10) in section 7703, by striking paragraphs (2) 

24 and (3) and redesignating paragraphs (4) and (5) as 

25 paragraphs (2) and (3), respectively. 
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1 (c) FULL-TIME EMPLOYEES.—For fiscal years 2014 

2 and 2015, the aggregate number of full-time equivalent 

3 employees authorized for the Veterans Benefit Adminis4 tration and the Veterans Economic Opportunity Adminis5 tration, as established under chapter 80 of title 38, United 

6 States Code, as added by section 2, may not exceed 

7 20,851. 

8 (d) EFFECTIVE DATE.—Section 306A of title 38, 

9 United States Code, as added by subsection (a), and the 

10 amendments made by this section, shall take effect on Oc11 tober 1, 2014. 

12 SEC. 6. FIVE-YEAR EXTENSION OF HOMELESS VETERANS 

13 REINTEGRATION PROGRAMS. 

14 Section 2021(e)(F) of title 38, United States Code, 

15 is amended by striking ‘‘2013’’ and inserting ‘‘2018’’. 

16 SEC. 7. ENTITLEMENT OF CHILDREN OF CERTAIN DE17 CEASED VETERANS TO EDUCATIONAL AS18 SISTANCE UNDER THE POST-9/11 EDU19 CATIONAL ASSISTANCE PROGRAM OF THE 

20 DEPARTMENT OF VETERANS AFFAIRS. 

21 (a) IN GENERAL.—Section 3311(b)(9) is amended— 

22 (1) by striking ‘‘2001, dies in line of duty while 

23 serving on active duty as a member of the Armed 

24 Forces.’’ and inserting ‘‘2001—’’; and 
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1 (2) by adding at the end the following new sub2 paragraphs: 

3 ‘‘(A) dies in line of duty while serving on 

4 active duty as a member of the Armed Forces; 

5 or 

6 ‘‘(B) is awarded the Purple Heart for an 

7 injury and dies as a result of that injury during 

8 the 31-day period beginning on the date of the 

9 person’s discharge or release from active duty 

10 service in the Armed Forces.’’. 

11 (b) APPLICABILITY.—The amendments made by sub12 section (a) shall apply with respect to a person who dies 

13 on or after September 11, 2001. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 subsection (a) shall take effect on October 1, 2014, and 

16 apply to payments of educational assistance for programs 

17 of education pursued after that date. 

18 SEC. 8. RECODIFICATION AND IMPROVEMENT OF ELEC19 TION PROCESS FOR POST-9/11 EDUCATIONAL 

20 ASSISTANCE PROGRAM. 

21 (a) IN GENERAL.—Subchapter III of chapter 33 is 

22 amended by adding at the end the following new section: 

23 ‘‘§ 3326. Election to receive educational assistance 

24 ‘‘(a) INDIVIDUALS ELIGIBLE TO ELECT PARTICIPA25 TION IN POST-9/11 EDUCATIONAL ASSISTANCE.—An indi-
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1 vidual may elect to receive educational assistance under 

2 this chapter if such individual— 

3 ‘‘(1) as of August 1, 2009— 

4 ‘‘(A) is entitled to basic educational assist5 ance under chapter 30 of the title and has used, 

6 but retains unused, entitlement under that 

7 chapter; 

8 ‘‘(B) is entitled to educational assistance 

9 under chapter 107, 1606, or 1607 of title 10 

10 and has used, but retains unused, entitlement 

11 under the applicable chapter; 

12 ‘‘(C) is entitled to basic educational assist13 ance under chapter 30 of this title but has not 

14 used any entitlement under that chapter; 

15 ‘‘(D) is entitled to educational assistance 

16 under chapter 107, 1606, or 1607 of title 10 

17 but has not used any entitlement under such 

18 chapter; 

19 ‘‘(E) is a member of the Armed Forces 

20 who is eligible for receipt of basic educational 

21 assistance under chapter 30 this title and is 

22 making contributions toward such assistance 

23 under section 3011(b) or 3012(c) of this title; 

24 or 
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1 ‘‘(F) is a member of the Armed Forces 

2 who is not entitled to basic educational assist3 ance under chapter 30 of this title by reason of 

4 an election under section 3011(c)(1) or 

5 3012(d)(1) of this title; and 

6 ‘‘(2) as of the date of the individual’s election 

7 under this paragraph, meets the requirements for 

8 entitlement to educational assistance under this 

9 chapter. 

10 ‘‘(b) CESSATION OF CONTRIBUTIONS TOWARD GI 

11 BILL.—Effective as of the first month beginning on or 

12 after the date of an election under subsection (a) of an 

13 individual described by paragraph (1)(E) of that sub14 section, the obligation of the individual to make contribu15 tions under section 3011(b) or 3012(c) of this title, as 

16 applicable, shall cease, and the requirements of such sec17 tion shall be deemed to be no longer applicable to the indi18 vidual. 

19 ‘‘(c) REVOCATION OF REMAINING TRANSFERRED

20 ENTITLEMENT.— 

21 ‘‘(1) ELECTION TO REVOKE.—If, on the date an 

22 individual described in paragraph (1)(A) or (1)(C) of 

23 subsection (a) makes an election under that sub24 section, a transfer of the entitlement of the indi25 vidual to basic educational assistance under section 
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1 3020 of this title is in effect and a number of 

2 months of the entitlement so transferred remain un3 utilized, the individual may elect to revoke all or a 

4 portion of the entitlement so transferred that re5 mains unutilized. 

6 ‘‘(2) AVAILABILITY OF REVOKED ENTITLE7 MENT.—Any entitlement revoked by an individual 

8 under this paragraph shall no longer be available to 

9 the dependent to whom transferred, but shall be 

10 available to the individual instead for educational as11 sistance under chapter 33 of this title in accordance 

12 with the provisions of this section. 

13 ‘‘(3) AVAILABILITY OF UNREVOKED ENTITLE14 MENT.—Any entitlement described in paragraph (1) 

15 that is not revoked by an individual in accordance 

16 with that paragraph shall remain available to the de17 pendent or dependents concerned in accordance with 

18 the current transfer of such entitlement under sec19 tion 3020 of this title. 

20 ‘‘(d) POST-9/11 EDUCATIONAL ASSISTANCE.— 

21 ‘‘(1) IN GENERAL.—Subject to paragraph (2) 

22 and except as provided in subsection (e), an indi23 vidual making an election under subsection (a) shall 

24 be entitled to educational assistance under this chap25 ter in accordance with the provisions of this chapter, 
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1 instead of basic educational assistance under chapter 

2 30 this title, or educational assistance under chapter 

3 107, 1606, or 1607 of title 10, as applicable. 

4 ‘‘(2) LIMITATION ON ENTITLEMENT FOR CER5 TAIN INDIVIDUALS.—In the case of an individual 

6 making an election under subsection (a) who is de7 scribed by paragraph (1)(A) of that subsection, the 

8 number of months of entitlement of the individual to 

9 educational assistance under this chapter 33 shall be 

10 the number of months equal to— 

11 ‘‘(A) the number of months of unused enti12 tlement of the individual under chapter 30 of 

13 this title, as of the date of the election, plus 

14 ‘‘(B) the number of months, if any, of enti15 tlement revoked by the individual under sub16 section (c)(1). 

17 ‘‘(e) CONTINUING ENTITLEMENT TO EDUCATIONAL

18 ASSISTANCE NOT AVAILABLE UNDER 9/11 ASSISTANCE

19 PROGRAM.— 

20 ‘‘(1) IN GENERAL.—In the event educational 

21 assistance to which an individual making an election 

22 under subsection (a) would be entitled under chapter 

23 30 of this title, or chapter 107, 1606, or 1607 of 

24 title 10, as applicable, is not authorized to be avail25 able to the individual under the provisions of this 
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1 chapter the individual shall remain entitled to such 

2 educational assistance in accordance with the provi3 sions of the applicable chapter. 

4 ‘‘(2) CHARGE FOR USE OF ENTITLEMENT.— 

5 The utilization by an individual of entitlement under 

6 paragraph (1) shall be chargeable against the enti7 tlement of the individual to educational assistance 

8 under this chapter at the rate of one month of enti9 tlement under this chapter for each month of entitle10 ment utilized by the individual under paragraph (1) 

11 (as determined as if such entitlement were utilized 

12 under the provisions of chapter 30 of this title, or 

13 chapter 107, 1606, or 1607 of title 10, as applica14 ble). 

15 ‘‘(f) ADDITIONAL POST-9/11 ASSISTANCE FOR MEM16 BERS HAVING MADE CONTRIBUTIONS TOWARD GI 

17 BILL.— 

18 ‘‘(1) ADDITIONAL ASSISTANCE.—In the case of 

19 an individual making an election under subsection 

20 (a) who is described by subparagraph (A), (C), or 

21 (E) of paragraph (1) of that subsection, the amount 

22 of educational assistance payable to the individual 

23 under this chapter 33 as a monthly stipend payable 

24 under paragraph (1)(B) of section 3313(c) of this 

25 title, or under paragraphs (2) through (7) of that 
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1 section (as applicable), shall be the amount other2 wise payable as a monthly stipend under the applica3 ble paragraph increased by the amount equal to— 

4 ‘‘(A) the total amount of contributions to5 ward basic educational assistance made by the 

6 individual under section 3011(b) or 3012(c) of 

7 this title, as of the date of the election, multi8 plied by 

9 ‘‘(B) the fraction— 

10 ‘‘(i) the numerator of which is— 

11 ‘‘(I) the number of months of en12 titlement to basic educational assist13 ance under chapter 30 of this title re14 maining to the individual at the time 

15 of the election; plus 

16 ‘‘(II) the number of months, if 

17 any, of entitlement under such chap18 ter 30 revoked by the individual under 

19 subsection (c)(1); and 

20 ‘‘(ii) the denominator of which is 36 

21 months. 

22 ‘‘(2) MONTHS OF REMAINING ENTITLEMENT

23 FOR CERTAIN INDIVIDUALS.—In the case of an indi24 vidual covered by paragraph (1) who is described by 

25 subsection (a)(1)(E), the number of months of enti-
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1 tlement to basic educational assistance remaining to 

2 the individual for purposes of paragraph 

3 (1)(B)(i)(II) shall be 36 months. 

4 ‘‘(3) TIMING OF PAYMENT.—The amount pay5 able with respect to an individual under paragraph 

6 (1) shall be paid to the individual together with the 

7 last payment of the monthly stipend payable to the 

8 individual under paragraph (1)(B) of section 

9 3313(c) of this title, or under subsections (b) 

10 through (g) of that section (as applicable), before 

11 the exhaustion of the individual’s entitlement to edu12 cational assistance under this chapter. 

13 ‘‘(g) CONTINUING ENTITLEMENT TO ADDITIONAL

14 ASSISTANCE FOR CRITICAL SKILLS OR SPECIALITY AND

15 ADDITIONAL SERVICE.—An individual making an election 

16 under subsection (a)(1) who, at the time of the election, 

17 is entitled to increased educational assistance under sec18 tion 3015(d) of this title, or section 16131(i) of title 10, 

19 or supplemental educational assistance under subchapter 

20 III of chapter 30 of this title, shall remain entitled to such 

21 increased educational assistance or supplemental edu22 cational assistance in the utilization of entitlement to edu23 cational assistance under this chapter, in an amount equal 

24 to the quarter, semester, or term, as applicable, equivalent 

25 of the monthly amount of such increased educational as-
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1 sistance or supplemental educational assistance payable 

2 with respect to the individual at the time of the election. 

3 ‘‘(h) ALTERNATIVE ELECTION BY SECRETARY.— 

4 ‘‘(1) IN GENERAL.—In the case of an individual 

5 who, on or after October 1, 2014, submits to the 

6 Secretary an election under this section that the 

7 Secretary determines is clearly against the interests 

8 of the individual, the Secretary may make an alter9 native election on behalf of the individual that the 

10 Secretary determines is in the best interests of the 

11 individual. 

12 ‘‘(2) NOTICE.—If the Secretary makes an elec13 tion on behalf of an individual under this subsection, 

14 the Secretary shall notify the individual by not later 

15 than seven days after making such election and shall 

16 provide the individual with a 30-day period, begin17 ning on the date of the individual’s receipt of such 

18 notice, during which the individual may modify or 

19 revoke the election made by the Secretary on the in20 dividual’s behalf. The Secretary shall include, as 

21 part of such notice, a clear statement of why the al22 ternative election made by the Secretary is in the 

23 best interests of the individual as compared to the 

24 election submitted by the individual. The Secretary 
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1 shall provide the notice required under this para2 graph by electronic means whenever possible. 

3 ‘‘(i) IRREVOCABILITY OF ELECTIONS.—An election 

4 under subsection (a) or (c)(1) is irrevocable.’’. 

5 (b) CLERICAL AMENDMENT.—The table of sections 

6 at the beginning of such chapter is amended by adding 

7 at the end the following new item: 

‘‘3326. Election to receive educational assistance.’’. 

8 (c) CONFORMING REPEAL.—Subsection (c) of section 

9 5003 of the Post-9/11 Veterans Educational Assistance 

10 Act of 2008 (Public Law 110–252; 38 U.S.C. 3301 note) 

11 is hereby repealed. 

12 SEC. 9. CENTRALIZED REPORTING OF VETERAN ENROLL13 MENT BY CERTAIN GROUPS, DISTRICTS, AND 

14 CONSORTIUMS OF EDUCATIONAL INSTITU15 TIONS. 

16 (a) IN GENERAL.—Section 3684(a) is amended— 

17 (1) in paragraph (1), by inserting ‘‘32, 33,’’ 

18 after ‘‘31,’’; and 

19 (2) by adding at the end the following new 

20 paragraph: 

21 ‘‘(4) For purposes of this subsection, the term ‘edu22 cational institution’ may include a group, district, or con23 sortium of separately accredited educational institutions 

24 located in the same State that are organized in a manner 
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1 that facilitates the centralized reporting of the enrollments 

2 in such group, district, or consortium of institutions.’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 subsection (a) shall apply with respect to reports sub5 mitted on or after the date of the enactment of this Act. 

6 SEC. 10. EXTENSION OF LOAN GUARANTY FEE FOR CER7 TAIN SUBSEQUENT LOANS. 

8 (a) EXTENSION.—Section 3729(b)(2)(B) is amend9 ed— 

10 (1) in clause (i), by striking ‘‘October 1, 2017’’ 

11 and inserting ‘‘October 1, 2018’’; and 

12 (2) in clause (ii), by striking ‘‘October 1, 2017’’ 

13 and inserting ‘‘October 1, 2018’’. 

14 SEC. 11. MORTGAGE PROTECTION FOR MEMBERS OF THE 

15 ARMED FORCES, SURVIVING SPOUSES, AND 

16 CERTAIN VETERANS. 

17 (a) MEMBERS OF THE ARMED FORCES, SURVIVING

18 SPOUSES, AND CERTAIN DISABLED VETERANS.— 

19 (1) IN GENERAL.—Title III of the 

20 Servicemembers Civil Relief Act (50 U.S.C. App. 

21 501 et seq.) is amended by inserting after section 

22 303 the following new section: 
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1 ‘‘SEC. 303A. MORTGAGES AND TRUST DEEDS OF CERTAIN 

2 SERVICEMEMBERS, SURVIVING SPOUSES, 

3 AND DISABLED VETERANS. 

4 ‘‘(a) MORTGAGE AS SECURITY.—This section applies 

5 only to an obligation on real or personal property owned 

6 by a covered individual that— 

7 ‘‘(1) originated at any time and for which the 

8 covered individual is still obligated; and 

9 ‘‘(2) is secured by a mortgage, trust deed, or 

10 other security in the nature of a mortgage. 

11 ‘‘(b) STAY OF PROCEEDINGS.— 

12 ‘‘(1) IN GENERAL.—In accordance with sub13 section (d)(1), in a judicial action pending or in a 

14 nonjudicial action commenced during a covered time 

15 period to enforce an obligation described in sub16 section (a), a court— 

17 ‘‘(A) may, after a hearing and on its own 

18 motion, stay the proceedings until the end of 

19 the covered time period; and 

20 ‘‘(B) shall, upon application by a covered 

21 individual, stay the proceedings until the end of 

22 the covered time period. 

23 ‘‘(2) OBLIGATION TO STOP PROCEEDINGS.— 

24 Upon receipt of notice provided under subsection 

25 (d)(1), a mortgagee, trustee, or other creditor seek26 ing to foreclose on real property secured by an obli-
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1 gation covered by this section using any judicial or 

2 nonjudicial proceedings shall immediately stop any 

3 such proceeding until the end of the covered time pe4 riod. 

5 ‘‘(c) SALE OR FORECLOSURE.—A sale, judicial or 

6 nonjudicial foreclosure, or seizure of property for a breach 

7 of an obligation described in subsection (a) that is not 

8 stayed under subsection (b) shall not be valid during a 

9 covered time period except— 

10 ‘‘(1) upon a court order granted before such 

11 sale, judicial or nonjudicial foreclosure, or seizure 

12 with a return made and approved by the court; or 

13 ‘‘(2) if made pursuant to an agreement as pro14 vided in section 107. 

15 ‘‘(d) NOTICE REQUIRED.— 

16 ‘‘(1) IN GENERAL.—To be covered under this 

17 section, a covered individual shall provide to the 

18 mortgagee, trustee, or other creditor written notice 

19 that such individual is so covered. 

20 ‘‘(2) MANNER.—Written notice under para21 graph (1) may be provided electronically. 

22 ‘‘(3) TIME.—Notice provided under paragraph 

23 (1) shall be provided during the covered time period. 
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1 ‘‘(4) CONTENTS.—With respect to a service2 member described in subsection (g)(1)(A), notice 

3 shall include— 

4 ‘‘(A) a copy of the servicemember’s official 

5 military orders, or any notification, certifi6 cation, or verification from a servicemember’s 

7 commanding officer that provides evidence of 

8 servicemember’s eligibility for special pay as de9 scribed in subsection (g)(1)(A); or 

10 ‘‘(B) an official notice using a form de11 signed under paragraph (5). 

12 ‘‘(5) OFFICIAL FORMS.— 

13 ‘‘(A) IN GENERAL.—The Secretary of De14 fense shall design and distribute an official De15 partment of Defense form that can be used by 

16 an individual to give notice under paragraph 

17 (1). 

18 ‘‘(B) USE OF OFFICIAL FORM NOT RE19 QUIRED.—Failure by any individual to use a 

20 form designed or distributed under subpara21 graph (A) to provide notice shall not make such 

22 provision of notice invalid. 

23 ‘‘(e) AGGREGATE DURATION.—The aggregate dura24 tion for which a covered individual (except a servicemem-
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1 ber described in subsection (g)(1)(A)) may be covered 

2 under this section is one year. 

3 ‘‘(f) MISDEMEANOR.—A person who knowingly 

4 makes or causes to be made a sale, foreclosure, or seizure 

5 of property that is prohibited by subsection (c), or who 

6 knowingly attempts to do so, shall be fined as provided 

7 in title 18, United States Code, or imprisoned for not more 

8 than one year, or both. 

9 ‘‘(g) DEFINITIONS.—In this section: 

10 ‘‘(1) COVERED INDIVIDUAL.—The term ‘cov11 ered individual’ means the following individuals: 

12 ‘‘(A) A servicemember who is or was eligi13 ble for hostile fire or imminent danger special 

14 pay under section 310 of title 37, United States 

15 Code, during a period of military service. 

16 ‘‘(B) A servicemember placed on convales17 cent status, including a servicemember trans18 ferred to the temporary disability retired list 

19 under section 1202 or 1205 of title 10, United 

20 States Code. 

21 ‘‘(C) A veteran who was medically dis22 charged and retired under chapter 61 of title 

23 10, United States Code, except for a veteran 

24 described in section 1207 of such title. 
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1 ‘‘(D) A surviving spouse (as defined in sec2 tion 101(3) of title 38, United States Code, and 

3 in accordance with section 103 of such title) of 

4 a servicemember who died while in military 

5 service if such spouse is the successor in inter6 est to property covered under subsection (a). 

7 ‘‘(2) COVERED TIME PERIOD.—The term ‘cov8 ered time period’ means the following time periods: 

9 ‘‘(A) With respect to a servicemember who 

10 is or was eligible for hostile fire or imminent 

11 danger special pay under section 310 of title 

12 37, United States Code, during a period of mili13 tary service, during the period beginning on the 

14 first day on which the servicemember is or was 

15 eligible for such special pay during such period 

16 of military service and ending on the date that 

17 is one year after the last day of such period of 

18 military service. 

19 ‘‘(B) With respect to a servicemember de20 scribed in paragraph (1)(B), during the one21 year period beginning on the date on which the 

22 servicemember is placed on convalescent status 

23 or transferred to the temporary disability re24 tired list under section 1202 or 1205 of title 

25 10, United States Code. 
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1 ‘‘(C) With respect to a veteran described in 

2 paragraph (1)(C), during the one-year period 

3 beginning on the date of the retirement of such 

4 veteran. 

5 ‘‘(D) With respect to a surviving spouse of 

6 a servicemember as described in paragraph 

7 (1)(D), during the one-year period beginning on 

8 the date on which the spouse receives notice of 

9 the death of the servicemember.’’. 

10 (2) CLERICAL AMENDMENT.—The table of con11 tents in section 1(b) of such Act is amended by in12 serting after the item relating to section 303 the fol13 lowing new item: 

‘‘Sec. 303A. Mortgages and trust deeds of certain servicemembers, surviving 

spouses, and disabled veterans.’’. 

14 (3) CONFORMING AMENDMENT.—Section 107 

15 of the Servicemembers Civil Relief Act (50 U.S.C. 

16 App. 517) is amended by adding at the end the fol17 lowing: 

18 ‘‘(e) OTHER INDIVIDUALS.—For purposes of this sec19 tion, the term ‘servicemember’ includes any covered indi20 vidual under section 303A.’’. 

21 (b) INCREASED CIVIL PENALTIES FOR MORTGAGE

22 VIOLATIONS.—Paragraph (3) of section 801(b) of the 

23 Servicemembers Civil Relief Act (50 U.S.C. App. 

24 597(b)(3)) is amended to read as follows: 
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1 ‘‘(3) to vindicate the public interest, assess a 

2 civil penalty— 

3 ‘‘(A) with respect to a violation of section 

4 207, 303, or 303A regarding real property— 

5 ‘‘(i) in an amount not exceeding 

6 $110,000 for a first violation; and 

7 ‘‘(ii) in an amount not exceeding 

8 $220,000 for any subsequent violation; and 

9 ‘‘(B) with respect to any other violation of 

10 this Act— 

11 ‘‘(i) in an amount not exceeding 

12 $55,000 for a first violation; and 

13 ‘‘(ii) in an amount not exceeding 

14 $110,000 for any subsequent violation.’’. 

15 (c) CREDIT DISCRIMINATION.—Section 108 of such 

16 Act (50 U.S.C. App. 518) is amended— 

17 (1) by striking ‘‘Application by’’ and inserting 

18 ‘‘(a) APPLICATION OR RECEIPT.—Application by’’; 

19 and 

20 (2) by adding at the end the following new sub21 section: 

22 ‘‘(b) ELIGIBILITY.—In addition to the protections 

23 under subsection (a), an individual who is entitled to any 

24 right or protection provided under this Act may not be 

25 denied or refused credit or be subject to any other action 
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1 described under paragraphs (1) through (6) of subsection 

2 (a) solely by reason of such entitlement.’’. 

3 (d) EFFECTIVE DATE.—Section 303A of the 

4 Servicemembers Civil Relief Act, as added by subsection 

5 (a), and the amendments made by this section, shall take 

6 effect on October 1, 2014. 

7 SEC. 12. TREATMENT OF RELOCATION FOR ACTIVE DUTY 

8 FOR PURPOSES OF MORTGAGE REFI9 NANCING. 

10 (a) IN GENERAL.—Title III of the Servicemembers 

11 Civil Relief Act (50 U.S.C. App. 531 et seq.) is amended 

12 by inserting after section 303A, as added by section 

13 11(a)(1), the following new section: 

14 ‘‘SEC. 303B. TREATMENT OF RELOCATION FOR ACTIVE 

15 DUTY FOR PURPOSES OF MORTGAGE REFI16 NANCING. 

17 ‘‘(a) TREATMENT OF ABSENCE FROM RESIDENCE

18 DUE TO ACTIVE DUTY.— 

19 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

20 if, at any time that a servicemember who is the 

21 mortgagor under an existing mortgage does not re22 side in the residence that secures the existing mort23 gage because of relocation described in subsection 

24 (c)(1)(B), such servicemember inquires about or ap25 plies for a covered refinancing mortgage, such serv-
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1 icemember shall be, for all purposes relating to the 

2 covered refinancing mortgage, including such inquiry 

3 or application and eligibility for and compliance with 

4 any underwriting criteria and standards regarding 

5 such covered refinancing mortgage, considered to oc6 cupy the residence that secures the existing mort7 gage to be paid or prepaid by such covered refi8 nancing mortgage as the principal residence of the 

9 servicemember during the period of any such reloca10 tion. 

11 ‘‘(2) LIMITATION.—Paragraph (1) shall not 

12 apply with respect to a servicemember at any time 

13 if, during the five-year period preceding such time, 

14 the servicemember entered into a covered refi15 nancing mortgage pursuant to this section. 

16 ‘‘(b) MORTGAGES ORIGINATED BEFORE PERIOD

17 MILITARY SERVICE.—If a covered refinancing mortgage 

18 is entered into pursuant to this section with respect to 

19 an existing mortgage that originated before the period of 

20 the servicemember’s military service, such covered refi21 nancing mortgage shall be deemed to be an obligation that 

22 originated before the period of the servicemember’s mili23 tary service and for which the servicemember is still obli24 gated for purposes of section 303(a)(1). 

25 ‘‘(c) DEFINITIONS.—In this section: 
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1 ‘‘(1) EXISTING MORTGAGE.—The term ‘existing 

2 mortgage’ means a mortgage that is secured by a 1- 

3 to 4-family residence, including a condominium or a 

4 share in a cooperative ownership housing associa5 tion, that was the principal residence of a service6 member for a period that— 

7 ‘‘(A) had a duration of 13 consecutive 

8 months or longer; and 

9 ‘‘(B) ended upon the relocation of the serv10 icemember caused by the servicemember receiv11 ing military orders for a permanent change of 

12 station or to deploy with a military unit, or as 

13 an individual in support of a military operation, 

14 for a period of not less than 90 days that did 

15 not allow the servicemember to continue to oc16 cupy such residence as a principal residence. 

17 ‘‘(2) COVERED REFINANCING MORTGAGE.—The 

18 term ‘covered refinancing mortgage’ means any 

19 mortgage— 

20 ‘‘(A) that is made for the purpose of pay21 ing or prepaying, and extinguishing, the out22 standing obligations under an existing mortgage 

23 or mortgages; and 
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1 ‘‘(B) that is secured by the same residence 

2 that secured such existing mortgage or mort3 gages.’’. 

4 (b) CLERICAL AMENDMENT.—The table of contents 

5 for such Act is amended by inserting after the item relat6 ing to section 303A the following new item: 

‘‘Sec. 303B. Treatment of relocation for active duty for purposes of mortgage 

refinancing.’’. 

7 (c) EFFECTIVE DATE.—Section 303B of the 

8 Servicemembers Civil Relief Act, as added by subsection 

9 (a), and the amendments made by this section, shall take 

10 effect on October 1, 2014. 

11 SEC. 13. REQUIREMENTS FOR LENDING INSTITUTIONS 

12 THAT ARE CREDITORS FOR OBLIGATIONS 

13 AND LIABILITIES COVERED BY THE 

14 SERVICEMEMBERS CIVIL RELIEF ACT. 

15 Section 207 of the Servicemembers Civil Relief Act 

16 (50 U.S.C. App. 527) is amended— 

17 (1) by redesignating subsections (d) and (e) as 

18 subsections (e) and (f), respectively; and 

19 (2) by inserting after subsection (c) the fol20 lowing new subsection (d): 

21 ‘‘(d) LENDING INSTITUTION REQUIREMENTS.— 

22 ‘‘(1) COMPLIANCE OFFICERS.—Each lending in23 stitution subject to the requirements of this section 

24 shall designate an employee of the institution as a 
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1 compliance officer who is responsible for ensuring 

2 the institution’s compliance with this section and for 

3 distributing information to servicemembers whose 

4 obligations and liabilities are covered by this section. 

5 ‘‘(2) TOLL-FREE TELEPHONE NUMBER.—Dur6 ing any fiscal year, a lending institution subject to 

7 the requirements of this section that had annual as8 sets for the preceding fiscal year of $10,000,000,000 

9 or more shall maintain a toll-free telephone number 

10 and shall make such telephone number available on 

11 the primary Internet website of the institution.’’. 

12 SEC. 14. PROTECTION OF CHILD CUSTODY ARRANGEMENTS 

13 FOR PARENTS WHO ARE MEMBERS OF THE 

14 ARMED FORCES. 

15 (a) CHILD CUSTODY PROTECTION.—Title II of the 

16 Servicemembers Civil Relief Act (50 U.S.C. App. 521 et 

17 seq.) is amended by adding at the end the following new 

18 section: 

19 ‘‘SEC. 208. CHILD CUSTODY PROTECTION. 

20 ‘‘(a) RESTRICTION ON TEMPORARY CUSTODY

21 ORDER.—If a court renders a temporary order for custo22 dial responsibility for a child based solely on a deployment 

23 or anticipated deployment of a parent who is a service24 member, then the court shall require that, upon the return 

25 of the servicemember from deployment, the custody order 
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1 that was in effect immediately preceding the temporary 

2 order shall be reinstated, unless the court finds that such 

3 a reinstatement is not in the best interest of the child, 

4 except that any such finding shall be subject to subsection 

5 (b). 

6 ‘‘(b) LIMITATION ON CONSIDERATION OF MEMBER’S

7 DEPLOYMENT IN DETERMINATION OF CHILD’S BEST IN8 TEREST.—If a motion or a petition is filed seeking a per9 manent order to modify the custody of the child of a serv10 icemember, no court may consider the absence of the serv11 icemember by reason of deployment, or the possibility of 

12 deployment, as the sole factor in determining the best in13 terest of the child. 

14 ‘‘(c) NO FEDERAL JURISDICTION OR RIGHT OF AC15 TION OR REMOVAL.—Nothing in this section shall create 

16 a Federal right of action or otherwise give rise to Federal 

17 jurisdiction or create a right of removal. 

18 ‘‘(d) PREEMPTION.—In any case where State law ap19 plicable to a child custody proceeding involving a tem20 porary order as contemplated in this section provides a 

21 higher standard of protection to the rights of the parent 

22 who is a deploying servicemember than the rights provided 

23 under this section with respect to such temporary order, 

24 the appropriate court shall apply the higher State stand25 ard. 
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1 ‘‘(e) DEPLOYMENT DEFINED.—In this section, the 

2 term ‘deployment’ means the movement or mobilization of 

3 a servicemember to a location for a period of longer than 

4 60 days and not longer than 540 days pursuant to tem5 porary or permanent official orders— 

6 ‘‘(1) that are designated as unaccompanied; 

7 ‘‘(2) for which dependent travel is not author8 ized; or 

9 ‘‘(3) that otherwise do not permit the move10 ment of family members to that location.’’. 

11 (b) CLERICAL AMENDMENT.—The table of contents 

12 in section 1(b) of such Act is amended by adding at the 

13 end of the items relating to title II the following new item: 

‘‘208. Child custody protection.’’. 

Passed the House of Representatives October 28, 

2013. 

Attest: 

Clerk. 
113TH CONGRESS 

1ST SESSION H. R. 2481 

AN ACT 

To make certain improvements in the laws adminising to benefits, and for other purposes. tered by the Secretary of Veterans Affairs relat-