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[110th Congress Public Law 317]
[From the U.S. Government Printing Office]

[DOCID: f:publ317.110]

[[Page 3525]]

                               HUBBARD ACT

[[Page 122 STAT. 3526]]

Public Law 110-317
110th Congress

                                 An Act

 
  To ensure the fair treatment of a member of the Armed Forces who is 
discharged from the Armed Forces, at the request of the member, pursuant 
to the Department of Defense policy permitting the early discharge of a 
 member who is the only surviving child in a family in which the father 
  or mother, or one or more siblings, served in the Armed Forces and, 
   because of hazards incident to such service, was killed, died as a 
 result of wounds, accident, or disease, is in a captured or missing in 
action status, or is permanently disabled, to amend the Internal Revenue 
Code of 1986 to repeal the dollar limitation on contributions to funeral 
 trusts, and for other purposes. <<NOTE: Aug. 29, 2008 -  [H.R. 6580]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Hubbard Act.>> assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 10 USC 101 note.>>  Short Title.--This Act may be cited 
as the ``Hubbard Act''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Continued payment of bonuses and similar benefits for members of 
           the Armed Forces who receive sole survivorship discharge.
Sec. 3. Availability of separation pay for members of the Armed Forces 
           with less than six years of active service who receive sole 
           survivorship discharge.
Sec. 4. Transitional health care for members of the Armed Forces who 
           receive sole survivorship discharge.
Sec. 5. Transitional commissary and exchange benefits for members of the 
           Armed Forces who receive sole survivorship discharge.
Sec. 6. Veterans benefits for members of the Armed Forces who receive 
           sole survivorship discharge.
Sec. 7. Unemployment compensation for members of the Armed Forces who 
           receive sole survivorship discharge.
Sec. 8. Preference-eligible status for members of the Armed Forces who 
           receive sole survivorship discharge.
Sec. 9. Repeal of dollar limitation on contributions to funeral trusts.
Sec. 10. Effective dates.

SEC. 2. CONTINUED PAYMENT OF BONUSES AND SIMILAR BENEFITS FOR 
                    MEMBERS OF THE ARMED FORCES WHO RECEIVE SOLE 
                    SURVIVORSHIP DISCHARGE.

    (a) Effect of Sole Survivorship Discharge.--Section 303a(e) of title 
37, United States Code, is amended--
            (1) in paragraph (1), by striking ``A member'' and inserting 
        ``(A) Except as provided in paragraph (2), a member'';
            (2) by redesignating paragraph (2) as subparagraph (B) of 
        paragraph (1); and
            (3) by inserting after paragraph (1), as so amended, the 
        following new paragraph (2):

    ``(2)(A) If a member of the uniformed services receives a sole 
survivorship discharge, the Secretary concerned--

[[Page 121 STAT. 3527]]

            ``(i) shall not require repayment by the member of the 
        unearned portion of any bonus, incentive pay, or similar benefit 
        previously paid to the member; and
            ``(ii) may grant an exception to the requirement to 
        terminate the payment of any unpaid amounts of a bonus, 
        incentive pay, or similar benefit if the Secretary concerned 
        determines that termination of the payment of the unpaid amounts 
        would be contrary to a personnel policy or management objective, 
        would be against equity and good conscience, or would be 
        contrary to the best interests of the United States.

    ``(B) In this paragraph, the term `sole survivorship discharge' 
means the separation of a member from the Armed Forces, at the request 
of the member, pursuant to the Department of Defense policy permitting 
the early separation of a member who is the only surviving child in a 
family in which--
            ``(i) the father or mother or one or more siblings--
                    ``(I) served in the Armed Forces; and
                    ``(II) was killed, died as a result of wounds, 
                accident, or disease, is in a captured or missing in 
                action status, or is permanently 100 percent disabled or 
                hospitalized on a continuing basis (and is not employed 
                gainfully because of the disability or hospitalization); 
                and
            ``(ii) the death, status, or disability did not result from 
        the intentional misconduct or willful neglect of the parent or 
        sibling and was not incurred during a period of unauthorized 
        absence.''.

    (b) Sense of Congress.--In light of the extraordinary discretion 
granted to the Secretary of a military department by statute and policy 
to continue to pay the unpaid amounts of a bonus, incentive pay, or 
similar benefit otherwise due to a member of the Armed Forces under the 
jurisdiction of the Secretary who receives a sole survivorship 
discharge, it is the sense of Congress that the Secretaries of the 
military departments should aggressively use such discretion to the 
benefit of members receiving a sole survivorship discharge.
SEC. 3. AVAILABILITY OF SEPARATION PAY FOR MEMBERS OF THE ARMED 
                    FORCES WITH LESS THAN SIX YEARS OF ACTIVE 
                    SERVICE WHO RECEIVE SOLE SURVIVORSHIP 
                    DISCHARGE.

    Section 1174 of title 10, United States Code, is amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following new 
        subsection:

    ``(i) Special Rule for Members Receiving Sole Survivorship 
Discharge.--(1) A member of the Armed Forces who receives a sole 
survivorship discharge shall be entitled to separation pay under this 
section even though the member has completed less than six years of 
active service immediately before that discharge. Subsection (e) shall 
not apply to a member who receives a sole survivorship discharge.
    ``(2) The amount of the separation pay to be paid to a member 
pursuant to this subsection shall be based on the years of active 
service actually completed by the member before the member's sole 
survivorship discharge.
    ``(3) In this subsection, the term `sole survivorship discharge' 
means the separation of a member from the Armed Forces, at the request 
of the member, pursuant to the Department of Defense

[[Page 121 STAT. 3528]]

policy permitting the early separation of a member who is the only 
surviving child in a family in which--
            ``(A) the father or mother or one or more siblings--
                    ``(i) served in the Armed Forces; and
                    ``(ii) was killed, died as a result of wounds, 
                accident, or disease, is in a captured or missing in 
                action status, or is permanently 100 percent disabled or 
                hospitalized on a continuing basis (and is not employed 
                gainfully because of the disability or hospitalization); 
                and
            ``(B) the death, status, or disability did not result from 
        the intentional misconduct or willful neglect of the parent or 
        sibling and was not incurred during a period of unauthorized 
        absence.''.
SEC. 4. TRANSITIONAL HEALTH CARE FOR MEMBERS OF THE ARMED FORCES 
                    WHO RECEIVE SOLE SURVIVORSHIP DISCHARGE.

    Section 1145(a)(2) of title 10, United States Code, is amended by 
adding at the end the following new subparagraph:
            ``(E) A member who receives a sole survivorship discharge 
        (as defined in section 1174(i) of this title).''.
SEC. 5. TRANSITIONAL COMMISSARY AND EXCHANGE BENEFITS FOR MEMBERS 
                    OF THE ARMED FORCES WHO RECEIVE SOLE 
                    SURVIVORSHIP DISCHARGE.

    Section 1146 of title 10, United States Code, is amended--
            (1) by striking ``The Secretary of Defense'' and inserting 
        the following:

    ``(a) Benefits for Members Involuntarily Separated.--The Secretary 
of Defense''; and
            (2) by adding at the end the following new subsection:

    ``(b) Benefits for Members Receiving Sole Survivorship Discharge.--A 
member of the Armed Forces who receives a sole survivorship discharge 
(as defined in section 1174(i) of this title) is entitled to continue to 
use commissary and exchange stores and morale, welfare, and recreational 
facilities in the same manner as a member on active duty during the two-
year period beginning on the later of the following dates:
            ``(1) The date of the separation of the member.
            ``(2) The date on which the member is first notified of the 
        members entitlement to benefits under this section.''.
SEC. 6. VETERANS BENEFITS FOR MEMBERS OF THE ARMED FORCES WHO 
                    RECEIVE SOLE SURVIVORSHIP DISCHARGE.

    (a) Housing Loan Benefits.--Section 3702(a)(2) of title 38, United 
States Code, is amended by adding at the end the following new 
subparagraph:
            ``(F) Each veteran who was discharged or released from a 
        period of active duty of 90 days or more by reason of a sole 
        survivorship discharge (as that term is defined in section 
        1174(i) of title 10).''.

    (b) Employment and Training.--Section 4211(4) of such title is 
amended--
            (1) in subparagraph (B), by striking ``or'' at the end;
            (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:

[[Page 121 STAT. 3529]]

                    ``(D) was discharged or released from active duty by 
                reason of a sole survivorship discharge (as that term is 
                defined in section 1174(i) of title 10).''.

    (c) Existing Basic Educational Assistance.--
            (1) Service on active duty.--Section 3011(a)(1) of such 
        title is amended--
                    (A) in subparagraph (A)(ii), by inserting after 
                ``service-connected disability,'' the following: ``by 
                reason of a sole survivorship discharge (as that term is 
                defined in section 1174(i) of title 10),'';
                    (B) in subparagraph (B)(ii), by inserting after 
                ``service-connected disability,'' the following: ``by 
                reason of a sole survivorship discharge (as that term is 
                defined in section 1174(i) of title 10),''; and
                    (C) in subparagraph (C)(iii)(II), by inserting after 
                ``service-connected disability,'' the following: ``by 
                reason of a sole survivorship discharge (as that term is 
                defined in section 1174(i) of title 10),''.
            (2) Service in the selected reserve.--Section 3012(b)(1) of 
        such title is amended--
                    (A) in subparagraph (A)--
                          (i) by striking ``, or (vi)'' and inserting 
                      ``, (vi)''; and
                          (ii) by inserting before the period at the end 
                      the following: ``, or (vii) by reason of a sole 
                      survivorship discharge (as that term is defined in 
                      section 1174(i) of title 10)''; and
                    (B) in subparagraph (B)--
                          (i) in clause (i), by inserting after 
                      ``service-connected disability,'' the following: 
                      ``by reason of a sole survivorship discharge (as 
                      that term is defined in section 1174(i) of title 
                      10),''; and
                          (ii) in clause (ii)--
                                    (I) by striking ``, or (VI)'' and 
                                inserting ``, (VI)''; and
                                    (II) by inserting before the period 
                                at the end the following: ``, or (VII) 
                                by reason of a sole survivorship 
                                discharge (as that term is defined in 
                                section 1174(i) of title 10)''.
SEC. 7. UNEMPLOYMENT COMPENSATION FOR MEMBERS OF THE ARMED FORCES 
                    WHO RECEIVE SOLE SURVIVORSHIP DISCHARGE.

    Section 8521(a)(1)(B)(ii)(III) of title 5, United States Code, is 
amended by striking ``hardship,'' and inserting ``hardship (including 
pursuant to a sole survivorship discharge, as that term is defined in 
section 1174(i) of title 10),''.
SEC. 8. PREFERENCE-ELIGIBLE STATUS FOR MEMBERS OF THE ARMED FORCES 
                    WHO RECEIVE SOLE SURVIVORSHIP DISCHARGE.

    Section 2108(3) of title 5, United States Code, is amended--
            (1) in subparagraph (F), by striking ``and'' at the end;
            (2) in subparagraph (G), by inserting ``and'' at the end; 
        and
            (3) by inserting after subparagraph (G) the following:
                    ``(H) a veteran who was discharged or released from 
                a period of active duty by reason of a sole survivorship

[[Page 121 STAT. 3530]]

                discharge (as that term is defined in section 1174(i) of 
                title 10);''.
SEC. 9. REPEAL OF DOLLAR LIMITATION ON CONTRIBUTIONS TO FUNERAL 
                    TRUSTS.

    (a) In General.--Subsection (c) of section 685 of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 685.>> (relating to treatment of 
funeral trusts) is repealed.

    (b) Conforming Amendment.--Subsections (d), (e), and (f) of such 
section are redesignated as subsections (c), (d), and (e), respectively.
    (c) Effective Date.--The <<NOTE: 26 USC 685 note.>> amendments made 
by this section shall apply to taxable years beginning after the date of 
the enactment of this Act.
SEC. 10. <<NOTE: Applicability. 5 USC 2108 note.>> EFFECTIVE 
                      DATES.

    (a) Retroactive Effective Date.--Except as provided in subsection 
(b) and section 9, this Act and the amendments made by this Act shall 
apply with respect to any sole survivorship discharge granted after 
September 11, 2001.
    (b) Date of Enactment Effective Date for Certain Amendments.--The 
amendments made by sections 4,  7, and 8 shall apply with respect to any 
sole survivorship discharge granted after the date of the enactment of 
this Act.
    (c) Sole Survivorship Discharge Defined.--In this section, the term 
``sole survivorship discharge'' means the separation of a member from 
the Armed Forces, at the request of the member, pursuant to the 
Department of Defense policy permitting the early separation of a member 
who is the only surviving child in a family in which--
            (1) the father or mother or one or more siblings--
                    (A) served in the Armed Forces; and
                    (B) was killed, died as a result of wounds, 
                accident, or disease, is in a captured or missing in 
                action status, or is permanently 100 percent disabled or 
                hospitalized on a continuing basis (and is not employed 
                gainfully because of the disability or hospitalization); 
                and
            (2) the death, status, or disability did not result from the 
        intentional misconduct or willful neglect of the parent or

[[Page 121 STAT. 3531]]

        sibling and was not incurred during a period of unauthorized 
        absence.

    Approved August 29, 2008.

LEGISLATIVE HISTORY--H.R. 6580:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 154 (2008):
            July 29, considered and passed House.
            Aug. 1, considered and passed Senate.

                                  <all>
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