I 

109TH CONGRESS 

2D SESSION H. R. 5520 

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 HOUSE OF REPRESENTATIVES 

MAY 25, 2006 

Mrs. WILSON of New Mexico (for herself, Mr. PLATTS, Mr. RENZI, Mr. 

HAYWORTH, Mr. GUTKNECHT, Mr. GARRETT of New Jersey, Mr. LEACH, 

Ms. ROS-LEHTINEN, Mr. SIMMONS, Mrs. KELLY, Mr. HEFLEY, Mr. 

COLE of Oklahoma, Mr. KLINE, Mr. BARRETT of South Carolina, Mrs. 

BLACKBURN, Ms. GRANGER, Mr. CARTER, Mrs. JOHNSON of Connecticut, 

Mr. SWEENEY, Mrs. MILLER of Michigan, Mr. SKELTON, Mr. SPRATT, 

Mr. HALL, Mr. SHERWOOD, Mr. GERLACH, Mrs. NORTHUP, Mr. 

LOBIONDO, Mr. ROGERS of Michigan, Mr. REICHERT, Mr. MCCAUL of 

Texas, Mr. SULLIVAN, Mr. BURGESS, Mr. GOHMERT, Mr. MARIO DIAZBALART of Florida, Mr. LINCOLN DIAZ-BALART of Florida, Ms. GINNY

BROWN-WAITE of Florida, Mr. DAVIS of Kentucky, Mr. HASTINGS of 

Florida, Mr. ABERCROMBIE, Mr. MEEHAN, Mr. MILLER of Florida, Mr. 

ADERHOLT, Mr. CRENSHAW, Mr. JENKINS, Mr. GOODE, Mr. JONES of 

North Carolina, Mrs. CUBIN, Mr. ROGERS of Alabama, Mr. EVERETT, 

Mr. BRADLEY of New Hampshire, Mr. BEAUPREZ, Mr. GINGREY, Mr. 

ISTOOK, Mr. TOM DAVIS of Virginia, Mrs. DRAKE, Mrs. SCHMIDT, Mr. 

LUCAS, Mr. KIRK, Mr. WOLF, Mr. ROTHMAN, Mr. SHIMKUS, Mr. TAYLOR of Mississippi, Mr. HULSHOF, Ms. HART, Mr. SHAYS, Mr. 

LANGEVIN, Mr. WAMP, Mr. SALAZAR, Mr. PORTER, Mr. FRANKS of Arizona, Mr. SESSIONS, Mr. HOEKSTRA, and Mr. HASTINGS of Washington) 

introduced the following bill; which was referred to the Committee on the 

Judiciary 

A BILL 

To establish the Office of Veterans Identity Protection 


hmoore on PROD1PC68 with HMBILLS
2 

•HR 5520 IH

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— 

8 (1) to reimburse injured persons for injuries 

9 suffered as a result of the unauthorized use, disclo10 sure, or dissemination of identifying information sto11 len from the home of an employee of the Depart12 ment of Veterans Affairs on or around May 3, 2006; 

13 and 

14 (2) to provide for the expeditious consideration 

15 and settlement of claims for those injuries. 

16 SEC. 3. DEFINITIONS. 

17 In this Act: 

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

19 the Director of the Office of Veterans Identity Pro20 tection Claims. 

21 (2) INJURED PERSON.—The term ‘‘injured per22 son’’ means an individual— 


hmoore on PROD1PC68 with HMBILLS
3 

•HR 5520 IH

1 (A) whose name or other personal identi2 fying information was part of the data of the 

3 Department of Veterans Affairs that was stolen 

4 from the home of an employee of the Depart5 ment of Veterans Affairs on or around May 3, 

6 2006; and 

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

8 the unauthorized use, disclosure, or dissemina9 tion of personal identifying information that 

10 was included in the data described in subpara11 graph (A). 

12 (3) OFFICE.—The term ‘‘Office’’ means the Of13 fice of Veterans Identity Protection Claims estab14 lished under section 4(a). 

15 SEC. 4. OFFICE OF VETERANS IDENTITY PROTECTION 

16 CLAIMS. 

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

18 independent office of the executive branch to receive, proc19 ess, and pay claims in accordance with this Act. Such of20 fice shall be known as the Office of Veterans Identity Pro21 tection Claims. 

22 (b) DIRECTOR.—Not later than 30 days after the en23 actment of this Act, the President shall appoint a director 

24 of the Office of Veterans Identity Protection Claims. The 

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


hmoore on PROD1PC68 with HMBILLS
4 

•HR 5520 IH

1 consider, ascertain, adjust, determine, grant, deny, or set2 tle any claim for money damages asserted under section 

3 5(b). 

4 (c) FUNDING.—The Office— 

5 (1) shall be funded from funds made available 

6 to the Director under this Act; 

7 (2) may reimburse other Federal agencies for 

8 claims processing support and assistance; 

9 (3) may appoint and fix the compensation of 

10 such temporary personnel as may be necessary, with11 out regard to the provisions of title 5, United States 

12 Code, governing appointments in competitive service; 

13 and 

14 (4) upon the request of the Director, may re15 quest that the head of any Federal department or 

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

17 personnel of that department or agency to the Office 

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

19 SEC. 5. REIMBURSEMENT FOR INJURIES SUFFERED. 

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

21 entitled to receive from the United States— 

22 (1) reimbursement for any injuries suffered by 

23 the injured person as a result of the unauthorized 

24 use, disclosure, or dissemination of personal identiVerDate Aug 31 2005 00:11 Jun 02, 2006 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5520.IH H5520

hmoore on PROD1PC68 with HMBILLS
5 

•HR 5520 IH

1 fying information that was included in the data de2 scribed in section 3(2)(A); and 

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

4 determined by the Director. 

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

6 after the date on which regulations are first promulgated 

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

8 Director a written claim for one or more injuries suffered 

9 by the injured person in accordance with such require10 ments as the Director determines to be appropriate. 

11 (c) INVESTIGATION OF CLAIMS.— 

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

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

14 in which the injured person resides shall apply to the 

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

16 (2) EXTENT OF DAMAGES.—Any payment 

17 under this Act— 

18 (A) shall be limited to actual compensatory 

19 damages measured by injuries suffered and in20 terest before settlement or payment of a claim; 

21 and 

22 (B) shall not include punitive damages. 

23 (d) PAYMENT OF CLAIMS.— 

24 (1) DETERMINATION AND PAYMENT OF

25 AMOUNT.— 


hmoore on PROD1PC68 with HMBILLS
6 

•HR 5520 IH

1 (A) IN GENERAL.—Not later than 180 

2 days after the date on which a claim is sub3 mitted under this Act, the Director shall deter4 mine and fix the amount, if any, to be paid for 

5 the claim. 

6 (B) PARAMETERS OF DETERMINATION.— 

7 In determining and settling a claim under this 

8 Act, the Director shall determine only— 

9 (i) whether the claimant is an injured 

10 person; 

11 (ii) whether the injury that is the sub12 ject of the claim resulted from the unau13 thorized use, disclosure, or dissemination 

14 of personal identifying information that 

15 was included in the data described in sec16 tion 3(2)(A); 

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

18 and paid to the injured person under this 

19 Act. 

20 (C) OTHER PAYMENTS OR SETTLE21 MENTS.—In determining the amount of, and 

22 paying, a claim under this Act, to prevent re23 covery by a claimant in excess of actual com24 pensatory damages, the Director shall reduce 

25 the amount to be paid for the claim by an 


hmoore on PROD1PC68 with HMBILLS
7 

•HR 5520 IH

1 amount that is equal to the total of any pay2 ments or settlements of any nature that were 

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

4 respect to the claim. 

5 (2) PARTIAL PAYMENT.— 

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

7 claimant, the Director may make one or more 

8 advance or partial payments before the final 

9 settlement of a claim, including final settlement 

10 on any portion or aspect of a claim that is de11 termined to be severable. 

12 (B) JUDICIAL DECISION.—If a claimant re13 ceives a partial payment on a claim under this 

14 Act, but further payment on the claim is subse15 quently denied by the Director, the claimant 

16 may— 

17 (i) seek judicial review under sub18 section (i); and 

19 (ii) keep any partial payment that the 

20 claimant received, unless the Director de21 termines that the claimant— 

22 (I) was not eligible to receive the 

23 reimbursement; or 

24 (II) fraudulently procured the re25 imbursement. 


hmoore on PROD1PC68 with HMBILLS
8 

•HR 5520 IH

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

2 paid under this Act may include otherwise uncom3 pensated damages for loss of property, business loss, 

4 or financial loss resulting from the unauthorized use, 

5 disclosure, or dissemination of personal identifying 

6 information that was included in the data described 

7 in section 3(2)(A). 

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

9 claimant of any payment under this Act, except an ad10 vance or partial payment made under subsection (d)(2), 

11 shall— 

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

13 with respect to all claims arising out of or relating 

14 to the same subject matter; 

15 (2) constitute a complete release of all claims 

16 against the United States (including any agency or 

17 employee of the United States) under chapter 171 of 

18 title 28, United States Code (commonly known as 

19 the ‘‘Federal Tort Claims Act’’), or any other Fed20 eral or State law, arising out of or relating to the 

21 same subject matter; and 

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

23 made under penalty of perjury and subject to the 

24 provisions of section 1001 of title 18, United States 

25 Code, that such claim is true and correct. 


hmoore on PROD1PC68 with HMBILLS
9 

•HR 5520 IH

1 (f) REGULATIONS AND PUBLIC INFORMATION.— 

2 (1) REGULATIONS.—Notwithstanding any other 

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

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

5 promulgate and publish in the Federal Register in6 terim final regulations for the processing and pay7 ment of claims under this Act. 

8 (2) PUBLIC INFORMATION.— 

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

10 the Director promulgates regulations under 

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

12 newspapers of general circulation in the each of 

13 the several States and the District of Columbia, 

14 a clear, concise, and easily understandable ex15 planation, in English and Spanish, of— 

16 (i) the rights conferred under this 

17 Act; and 

18 (ii) the procedural and other require19 ments of the regulations promulgated 

20 under paragraph (1). 

21 (B) DISSEMINATION THROUGH OTHER

22 MEDIA.—The Director shall disseminate the ex23 planation published under subparagraph (A) 

24 through brochures, pamphlets, radio, television, 


hmoore on PROD1PC68 with HMBILLS
10 

•HR 5520 IH

1 and other media that the Director determines 

2 are likely to reach prospective claimants. 

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

4 Director shall consult with the Attorney General, the Sec5 retary of Veterans Affairs, the Secretary of the Defense, 

6 the Secretary of Commerce, other Federal agencies, and 

7 State and local authorities, as determined to be necessary 

8 by the Director to— 

9 (1) ensure the efficient administration of the 

10 claims process; and 

11 (2) provide for local concerns. 

12 (h) ELECTION OF REMEDY.— 

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

14 to seek reimbursement from the United States for 

15 one or more injuries resulting from 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) by— 

19 (A) submitting a claim under this Act; 

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

21 under chapter 171 of title 28, United States 

22 Code; or 

23 (C) bringing an authorized civil action 

24 under any other provision of law. 


hmoore on PROD1PC68 with HMBILLS
11 

•HR 5520 IH

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

2 injured person to seek reimbursement in any manner 

3 described in paragraph (1) shall be final and conclu4 sive on the claimant with respect to all injuries re5 sulting from the unauthorized use, disclosure, or dis6 semination of personal identifying information that 

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

8 that are suffered by the claimant. 

9 (3) ARBITRATION.— 

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

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

12 Director shall establish by regulation proce13 dures under which a dispute regarding a claim 

14 submitted under this Act may be settled by ar15 bitration. 

16 (B) ARBITRATION AS REMEDY.—On estab17 lishment of arbitration procedures under sub18 paragraph (A), an injured person that submits 

19 a disputed claim under this Act may elect to 

20 settle the claim through arbitration. 

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

22 injured person to settle a claim through arbitra23 tion under this paragraph shall— 

24 (i) be binding; and 


hmoore on PROD1PC68 with HMBILLS
12 

•HR 5520 IH

1 (ii) preclude any exercise by the in2 jured person of the right to judicial review 

3 of a claim described in subsection (i). 

4 (4) NO EFFECT ON ENTITLEMENTS.—Nothing 

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

6 claim for benefits under any Federal entitlement 

7 program. 

8 (i) JUDICIAL REVIEW.— 

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

10 final decision of the Director under this Act may, 

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

12 decision is issued, bring a civil action in the an ap13 propriate United States District Court, to modify or 

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

15 (2) RECORD.—The court shall hear a civil ac16 tion under paragraph (1) on the record made before 

17 the Director. 

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

19 incorporating the findings of the Director shall be 

20 upheld if the decision is supported by substantial 

21 evidence on the record considered as a whole. 

22 (j) ATTORNEY’S AND AGENT’S FEES.— 

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

24 alone or in combination with any other attorney or 

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


hmoore on PROD1PC68 with HMBILLS
13 

•HR 5520 IH

1 services rendered in connection with a claim sub2 mitted under this Act, fees in excess of 10 percent 

3 of the amount of any payment on the claim. 

4 (2) VIOLATION.—An attorney or agent who vio5 lates paragraph (1) shall be fined not more than 

6 $10,000. 

7 (k) APPLICABILITY OF DEBT COLLECTION REQUIRE8 MENTS.—Section 3716 of title 31, United States Code, 

9 shall not apply to any payment under this Act. 

10 SEC. 6. REPORT; AUDIT. 

11 (a) Not later than 180 days after the date of promul12 gation of regulations under section 5(f)(1), and semiannu13 ally thereafter, the Director shall submit to the Commit14 tees on Veterans Affairs, Energy and Commerce, and Ju15 diciary of the House of Representatives, and the Commit16 tees on Veterans Affairs, Commerce, Science and Trans17 portation, and Judiciary of the Senate, a report that de18 scribes the claims submitted under this Act during the six 

19 months preceding the date of submission of the report, 

20 including, for each claim— 

21 (1) the amount claimed; 

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

23 claim; and 

24 (3) the status or disposition of the claim, in25 cluding the amount of any payment under this Act. 


hmoore on PROD1PC68 with HMBILLS
14 

•HR 5520 IH

1 (b) The Comptroller General shall conduct an annual 

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

3 and shall report to the committees described in subsection 

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

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

6 of the enactment of this Act. 

7 SEC. 7. AUTHORIZATION OF APPROPRIATIONS. 

8 There are authorized to be appropriated to the Direc9 tor such sums as are necessary to carry out this Act, to 

10 remain available until expended. 

Æ 


hmoore on PROD1PC68 with HMBILLS