II 

109TH CONGRESS 

2D SESSION S. 3555 

To establish the Office of Veterans Identity Protection Claims to reimburse 

injured persons for injuries suffered as a result of the unauthorized 

use, disclosure, or dissemination of identifying information stolen from 

the Department of Veterans Affairs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 21, 2006 

Mr. THUNE introduced the following bill; which was read twice and referred 

to the Committee on Veterans’ Affairs 

A BILL 

To establish the Office of Veterans Identity Protection 

Claims to reimburse injured persons for injuries suffered 

as a result of the unauthorized use, disclosure, or dissemination of identifying information stolen from the 

Department of Veterans Affairs, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veterans Identity Pro5 tection Act’’, or the ‘‘VIP Act’’. 

6 SEC. 2. PURPOSES. 

7 The purposes of this Act are— 


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1 (1) to reimburse injured persons for injuries 

2 suffered as a result of the unauthorized use, disclo3 sure, or dissemination of identifying information sto4 len from the home of an employee of the Depart5 ment of Veterans Affairs on or around May 3, 2006; 

6 and 

7 (2) to provide for the expeditious consideration 

8 and settlement of claims for those injuries. 

9 SEC. 3. DEFINITIONS. 

10 In this Act: 

11 (1) DIRECTOR.—The term ‘‘Director’’ means 

12 the Director of the Office of Veterans Identity Pro13 tection Claims. 

14 (2) INJURED PERSON.—The term ‘‘injured per15 son’’ means an individual— 

16 (A) whose name or other personal identi17 fying information was part of the data of the 

18 Department of Veterans Affairs that was stolen 

19 from the home of an employee of the Depart20 ment of Veterans Affairs on or around May 3, 

21 2006; and 

22 (B) who suffered an injury as a result of 

23 the unauthorized use, disclosure, or dissemina24 tion of personal identifying information that 


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1 was included in the data described in subpara2 graph (A). 

3 (3) OFFICE.—The term ‘‘Office’’ means the Of4 fice of Veterans Identity Protection Claims estab5 lished under section 4(a). 

6 SEC. 4. OFFICE OF VETERANS IDENTITY PROTECTION 

7 CLAIMS. 

8 (a) OFFICE ESTABLISHED.—There is established an 

9 independent office of the executive branch to receive, proc10 ess, and pay claims in accordance with this Act. Such of11 fice shall be known as the Office of Veterans Identity Pro12 tection Claims. 

13 (b) DIRECTOR.—Not later than 30 days after the en14 actment of this Act, the President shall appoint a director 

15 of the Office of Veterans Identity Protection Claims. The 

16 Director shall, on behalf of the United States, investigate, 

17 consider, ascertain, adjust, determine, grant, deny, or set18 tle any claim for money damages asserted under section 

19 5(b). 

20 (c) FUNDING.—The Office— 

21 (1) shall be funded from funds made available 

22 to the Director under this Act; 

23 (2) may reimburse other Federal agencies for 

24 claims processing support and assistance; 


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1 (3) may appoint and fix the compensation of 

2 such temporary personnel as may be necessary, with3 out regard to the provisions of title 5, United States 

4 Code, governing appointments in competitive service; 

5 and 

6 (4) upon the request of the Director, may re7 quest that the head of any Federal department or 

8 agency detail, on a reimbursable basis, any of the 

9 personnel of that department or agency to the Office 

10 to assist it in carrying out its duties under this Act. 

11 SEC. 5. REIMBURSEMENT FOR INJURIES SUFFERED. 

12 (a) REIMBURSEMENT.—Each injured person shall be 

13 entitled to receive from the United States— 

14 (1) reimbursement for any injuries suffered by 

15 the injured person as a result of the unauthorized 

16 use, disclosure, or dissemination of personal identi17 fying information that was included in the data de18 scribed in section 3(2)(A); and 

19 (2) damages described in subsection (d)(3), as 

20 determined by the Director. 

21 (b) SUBMISSION OF CLAIMS.—Not later than 2 years 

22 after the date on which regulations are first promulgated 

23 under subsection (f), an injured person may submit to the 

24 Director a written claim for one or more injuries suffered 


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1 by the injured person in accordance with such require2 ments as the Director determines to be appropriate. 

3 (c) INVESTIGATION OF CLAIMS.— 

4 (1) APPLICABILITY OF STATE LAW.—Except as 

5 otherwise provided in this Act, the laws of the State 

6 in which the injured person resides shall apply to the 

7 calculation of damages under subsection (d)(3). 

8 (2) EXTENT OF DAMAGES.—Any payment 

9 under this Act— 

10 (A) shall be limited to actual compensatory 

11 damages measured by injuries suffered and in12 terest before settlement or payment of a claim; 

13 and 

14 (B) shall not include punitive damages. 

15 (d) PAYMENT OF CLAIMS.— 

16 (1) DETERMINATION AND PAYMENT OF

17 AMOUNT.— 

18 (A) IN GENERAL.—Not later than 180 

19 days after the date on which a claim is sub20 mitted under this Act, the Director shall deter21 mine and fix the amount, if any, to be paid for 

22 the claim. 

23 (B) PARAMETERS OF DETERMINATION.— 

24 In determining and settling a claim under this 

25 Act, the Director shall determine only— 


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1 (i) whether the claimant is an injured 

2 person; 

3 (ii) whether the injury that is the sub4 ject of the claim resulted from the unau5 thorized use, disclosure, or dissemination 

6 of personal identifying information that 

7 was included in the data described in sec8 tion 3(2)(A); 

9 (iii) the amount, if any, to be allowed 

10 and paid to the injured person under this 

11 Act. 

12 (C) OTHER PAYMENTS OR SETTLE13 MENTS.—In determining the amount of, and 

14 paying, a claim under this Act, to prevent re15 covery by a claimant in excess of actual com16 pensatory damages, the Director shall reduce 

17 the amount to be paid for the claim by an 

18 amount that is equal to the total of any pay19 ments or settlements of any nature that were 

20 paid, or will be paid, to the injured person with 

21 respect to the claim. 

22 (2) PARTIAL PAYMENT.— 

23 (A) IN GENERAL.—At the request of a 

24 claimant, the Director may make one or more 

25 advance or partial payments before the final 


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1 settlement of a claim, including final settlement 

2 on any portion or aspect of a claim that is de3 termined to be severable. 

4 (B) JUDICIAL DECISION.—If a claimant re5 ceives a partial payment on a claim under this 

6 Act, but further payment on the claim is subse7 quently denied by the Director, the claimant 

8 may— 

9 (i) seek judicial review under sub10 section (i); and 

11 (ii) keep any partial payment that the 

12 claimant received, unless the Director de13 termines that the claimant— 

14 (I) was not eligible to receive the 

15 reimbursement; or 

16 (II) fraudulently procured the re17 imbursement. 

18 (3) ALLOWABLE DAMAGES.—A claim that is 

19 paid under this Act may include otherwise uncom20 pensated damages for loss of property, business loss, 

21 or financial loss resulting from the unauthorized use, 

22 disclosure, or dissemination of personal identifying 

23 information that was included in the data described 

24 in section 3(2)(A). 


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1 (e) ACCEPTANCE OF AWARD.—The acceptance by a 

2 claimant of any payment under this Act, except an ad3 vance or partial payment made under subsection (d)(2), 

4 shall— 

5 (1) be final and conclusive on the claimant, 

6 with respect to all claims arising out of or relating 

7 to the same subject matter; 

8 (2) constitute a complete release of all claims 

9 against the United States (including any agency or 

10 employee of the United States) under chapter 171 of 

11 title 28, United States Code (commonly known as 

12 the ‘‘Federal Tort Claims Act’’), or any other Fed13 eral or State law, arising out of or relating to the 

14 same subject matter; and 

15 (3) shall include a certification by the claimant, 

16 made under penalty of perjury and subject to the 

17 provisions of section 1001 of title 18, United States 

18 Code, that such claim is true and correct. 

19 (f) REGULATIONS AND PUBLIC INFORMATION.— 

20 (1) REGULATIONS.—Notwithstanding any other 

21 provision of law, not later than 45 days after the 

22 date of the enactment of this Act, the Director shall 

23 promulgate and publish in the Federal Register in24 terim final regulations for the processing and pay25 ment of claims under this Act. 


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1 (2) PUBLIC INFORMATION.— 

2 (A) IN GENERAL.—At the time at which 

3 the Director promulgates regulations under 

4 paragraph (1), the Director shall publish, in 

5 newspapers of general circulation in the each of 

6 the several States and the District of Columbia, 

7 a clear, concise, and easily understandable ex8 planation, in English and Spanish, of— 

9 (i) the rights conferred under this 

10 Act; and 

11 (ii) the procedural and other require12 ments of the regulations promulgated 

13 under paragraph (1). 

14 (B) DISSEMINATION THROUGH OTHER

15 MEDIA.—The Director shall disseminate the ex16 planation published under subparagraph (A) 

17 through brochures, pamphlets, radio, television, 

18 and other media that the Director determines 

19 are likely to reach prospective claimants. 

20 (g) CONSULTATION.—In administering this Act, the 

21 Director shall consult with the Attorney General, the Sec22 retary of Veterans Affairs, the Secretary of the Defense, 

23 the Secretary of Commerce, other Federal agencies, and 

24 State and local authorities, as determined to be necessary 

25 by the Director to— 


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1 (1) ensure the efficient administration of the 

2 claims process; and 

3 (2) provide for local concerns. 

4 (h) ELECTION OF REMEDY.— 

5 (1) IN GENERAL.—An injured person may elect 

6 to seek reimbursement from the United States for 

7 one or more injuries resulting from the unauthorized 

8 use, disclosure, or dissemination of personal identi9 fying information that was included in the data de10 scribed in section 3(2)(A) by— 

11 (A) submitting a claim under this Act; 

12 (B) filing a claim or bringing a civil action 

13 under chapter 171 of title 28, United States 

14 Code; or 

15 (C) bringing an authorized civil action 

16 under any other provision of law. 

17 (2) EFFECT OF ELECTION.—An election by an 

18 injured person to seek reimbursement in any manner 

19 described in paragraph (1) shall be final and conclu20 sive on the claimant with respect to all injuries re21 sulting from the unauthorized use, disclosure, or dis22 semination of personal identifying information that 

23 was included in the data described in section 3(2)(A) 

24 that are suffered by the claimant. 

25 (3) ARBITRATION.— 


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1 (A) IN GENERAL.—Not later than 45 days 

2 after the date of the enactment of this Act, the 

3 Director shall establish by regulation proce4 dures under which a dispute regarding a claim 

5 submitted under this Act may be settled by ar6 bitration. 

7 (B) ARBITRATION AS REMEDY.—On estab8 lishment of arbitration procedures under sub9 paragraph (A), an injured person that submits 

10 a disputed claim under this Act may elect to 

11 settle the claim through arbitration. 

12 (C) BINDING EFFECT.—An election by an 

13 injured person to settle a claim through arbitra14 tion under this paragraph shall— 

15 (i) be binding; and 

16 (ii) preclude any exercise by the in17 jured person of the right to judicial review 

18 of a claim described in subsection (i). 

19 (4) NO EFFECT ON ENTITLEMENTS.—Nothing 

20 in this Act affects any right of a claimant to file a 

21 claim for benefits under any Federal entitlement 

22 program. 

23 (i) JUDICIAL REVIEW.— 

24 (1) IN GENERAL.—Any claimant aggrieved by a 

25 final decision of the Director under this Act may, 


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1 not later than 60 days after the date on which the 

2 decision is issued, bring a civil action in the an ap3 propriate United States District Court, to modify or 

4 set aside the decision, in whole or in part. 

5 (2) RECORD.—The court shall hear a civil ac6 tion under paragraph (1) on the record made before 

7 the Director. 

8 (3) STANDARD.—The decision of the Director 

9 incorporating the findings of the Director shall be 

10 upheld if the decision is supported by substantial 

11 evidence on the record considered as a whole. 

12 (j) ATTORNEY’S AND AGENT’S FEES.— 

13 (1) IN GENERAL.—No attorney or agent, acting 

14 alone or in combination with any other attorney or 

15 agent, shall charge, demand, receive, or collect, for 

16 services rendered in connection with a claim sub17 mitted under this Act, fees in excess of 10 percent 

18 of the amount of any payment on the claim. 

19 (2) VIOLATION.—An attorney or agent who vio20 lates paragraph (1) shall be fined not more than 

21 $10,000. 

22 (k) APPLICABILITY OF DEBT COLLECTION REQUIRE23 MENTS.—Section 3716 of title 31, United States Code, 

24 shall not apply to any payment under this Act. 


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1 SEC. 6. REPORT; AUDIT. 

2 (a) Not later than 180 days after the date of promul3 gation of regulations under section 5(f)(1), and semiannu4 ally thereafter, the Director shall submit to the Commit5 tees on Veterans Affairs, Energy and Commerce, and Ju6 diciary of the House of Representatives, and the Commit7 tees on Veterans Affairs, Commerce, Science and Trans8 portation, and Judiciary of the Senate, a report that de9 scribes the claims submitted under this Act during the six 

10 months preceding the date of submission of the report, 

11 including, for each claim— 

12 (1) the amount claimed; 

13 (2) a brief description of the nature of the 

14 claim; and 

15 (3) the status or disposition of the claim, in16 cluding the amount of any payment under this Act. 

17 (b) The Comptroller General shall conduct an annual 

18 audit on the payment of all claims made under this Act, 

19 and shall report to the committees described in subsection 

20 (a) on the results of this audit beginning not later than 

21 the expiration of the 1-year period beginning on the date 

22 of the enactment of this Act. 


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1 SEC. 7. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated to the Direc3 tor such sums as are necessary to carry out this Act, to 

4 remain available until expended. 

Æ 


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