I 

110TH CONGRESS 

1ST SESSION H. R. 1307 

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 

MARCH 1, 2007 

Mrs. WILSON of New Mexico (for herself, Mr. BACHUS, Mrs. BONO, Mr. BURTON of Indiana, Mrs. CUBIN, Mrs. JO ANN DAVIS of Virginia, Mrs. 

DRAKE, Mr. RADANOVICH, Mr. RAMSTAD, Mr. REICHERT, Mr. SESSIONS, 

Mr. SHUSTER, Mr. SPRATT, and Mr. WOLF) introduced the following bill; 

which was referred to the Committee on the Judiciary 

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’’. 


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1 SEC. 2. PURPOSES. 

2 The purposes of this Act are— 

3 (1) to reimburse injured persons for injuries 

4 suffered as a result of the unauthorized use, disclo5 sure, or dissemination of identifying information im6 properly released by or obtained from the Depart7 ment of Veterans Affairs; and 

8 (2) to provide for the expeditious consideration 

9 and settlement of claims for those injuries. 

10 SEC. 3. DEFINITIONS. 

11 In this Act: 

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

13 the Director of the Office of Veterans Identity Pro14 tection Claims. 

15 (2) INJURED PERSON.—The term ‘‘injured per16 son’’ means an individual— 

17 (A) whose name or other personal identi18 fying information is part of data of the Depart19 ment of Veterans Affairs that— 

20 (i) was stolen from the home of an 

21 employee of the Department of Veterans 

22 Affairs on or around May 3, 2006; 

23 (ii) was reported missing from the 

24 Birmingham VA Medical Center on or 

25 around January 22, 2007; or 


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1 (iii) is otherwise compromised as a re2 sult of a security breach, including any ac3 tion or ommission by an officer, employee, 

4 volunteer, or contractor (or employee of a 

5 contractor) of the Department of Veterans 

6 Affairs in contravention of any security 

7 policy or procedure of the Department that 

8 results in such a breach; and 

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

10 the unauthorized use, disclosure, or dissemina11 tion of personal identifying information that 

12 was included in data described in subparagraph 

13 (A). 

14 (3) OFFICE.—The term ‘‘Office’’ means the Of15 fice of Veterans Identity Protection Claims estab16 lished under section 4(a). 

17 SEC. 4. OFFICE OF VETERANS IDENTITY PROTECTION 

18 CLAIMS. 

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

20 independent office of the executive branch to receive, proc21 ess, and pay claims in accordance with this Act. Such of22 fice shall be known as the Office of Veterans Identity Pro23 tection Claims. 

24 (b) DIRECTOR.—Not later than 30 days after the en25 actment of this Act, the President shall appoint a director 


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1 of the Office of Veterans Identity Protection Claims. The 

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

3 consider, ascertain, adjust, determine, grant, deny, or set4 tle any claim for money damages asserted under section 

5 5(b). 

6 (c) FUNDING.—The Office— 

7 (1) shall be funded from funds made available 

8 to the Director under this Act; 

9 (2) may reimburse other Federal agencies for 

10 claims processing support and assistance; 

11 (3) may appoint and fix the compensation of 

12 such temporary personnel as may be necessary, with13 out regard to the provisions of title 5, United States 

14 Code, governing appointments in competitive service; 

15 and 

16 (4) upon the request of the Director, may re17 quest that the head of any Federal department or 

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

19 personnel of that department or agency to the Office 

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

21 SEC. 5. REIMBURSEMENT FOR INJURIES SUFFERED. 

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

23 entitled to receive from the United States— 

24 (1) reimbursement for any injuries suffered by 

25 the injured person as a result of the unauthorized 


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1 use, disclosure, or dissemination of personal identi2 fying information that was included in the data de3 scribed in section 3(2)(A); and 

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

5 determined by the Director. 

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

7 after the date on which regulations are first promulgated 

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

9 Director a written claim for one or more injuries suffered 

10 by the injured person in accordance with such require11 ments as the Director determines to be appropriate. 

12 (c) INVESTIGATION OF CLAIMS.— 

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

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

15 in which the injured person resides shall apply to the 

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

17 (2) EXTENT OF DAMAGES.—Any payment 

18 under this Act— 

19 (A) shall be limited to actual compensatory 

20 damages measured by injuries suffered and in21 terest before settlement or payment of a claim; 

22 and 

23 (B) shall not include punitive damages. 

24 (d) PAYMENT OF CLAIMS.— 


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1 (1) DETERMINATION AND PAYMENT OF

2 AMOUNT.— 

3 (A) IN GENERAL.—Not later than 180 

4 days after the date on which a claim is sub5 mitted under this Act, the Director shall deter6 mine and fix the amount, if any, to be paid for 

7 the claim. 

8 (B) PARAMETERS OF DETERMINATION.— 

9 In determining and settling a claim under this 

10 Act, the Director shall determine only— 

11 (i) whether the claimant is an injured 

12 person; 

13 (ii) whether the injury that is the sub14 ject of the claim resulted from the unau15 thorized use, disclosure, or dissemination 

16 of personal identifying information that 

17 was included in the data described in sec18 tion 3(2)(A); 

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

20 and paid to the injured person under this 

21 Act. 

22 (C) OTHER PAYMENTS OR SETTLE23 MENTS.—In determining the amount of, and 

24 paying, a claim under this Act, to prevent re25 covery by a claimant in excess of actual comVerDate Aug 31 2005 06:02 Mar 04, 2007 Jkt 059196 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1307.IH H1307

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1 pensatory damages, the Director shall reduce 

2 the amount to be paid for the claim by an 

3 amount that is equal to the total of any pay4 ments or settlements of any nature that were 

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

6 respect to the claim. 

7 (2) PARTIAL PAYMENT.— 

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

9 claimant, the Director may make one or more 

10 advance or partial payments before the final 

11 settlement of a claim, including final settlement 

12 on any portion or aspect of a claim that is de13 termined to be severable. 

14 (B) JUDICIAL DECISION.—If a claimant re15 ceives a partial payment on a claim under this 

16 Act, but further payment on the claim is subse17 quently denied by the Director, the claimant 

18 may— 

19 (i) seek judicial review under sub20 section (i); and 

21 (ii) keep any partial payment that the 

22 claimant received, unless the Director de23 termines that the claimant— 

24 (I) was not eligible to receive the 

25 reimbursement; or 


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1 (II) fraudulently procured the re2 imbursement. 

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

4 paid under this Act may include otherwise uncom5 pensated damages for loss of property, business loss, 

6 or financial loss resulting from the unauthorized use, 

7 disclosure, or dissemination of personal identifying 

8 information that was included in the data described 

9 in section 3(2)(A). 

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

11 claimant of any payment under this Act, except an ad12 vance or partial payment made under subsection (d)(2), 

13 shall— 

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

15 with respect to all claims arising out of or relating 

16 to the same subject matter; 

17 (2) constitute a complete release of all claims 

18 against the United States (including any agency or 

19 employee of the United States) under chapter 171 of 

20 title 28, United States Code (commonly known as 

21 the ‘‘Federal Tort Claims Act’’), or any other Fed22 eral or State law, arising out of or relating to the 

23 same subject matter; and 

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

25 made under penalty of perjury and subject to the 


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1 provisions of section 1001 of title 18, United States 

2 Code, that such claim is true and correct. 

3 (f) REGULATIONS AND PUBLIC INFORMATION.— 

4 (1) REGULATIONS.—Notwithstanding any other 

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

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

7 promulgate and publish in the Federal Register in8 terim final regulations for the processing and pay9 ment of claims under this Act. 

10 (2) PUBLIC INFORMATION.— 

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

12 the Director promulgates regulations under 

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

14 newspapers of general circulation in the each of 

15 the several States and the District of Columbia, 

16 a clear, concise, and easily understandable ex17 planation, in English and Spanish, of— 

18 (i) the rights conferred under this 

19 Act; and 

20 (ii) the procedural and other require21 ments of the regulations promulgated 

22 under paragraph (1). 

23 (B) DISSEMINATION THROUGH OTHER

24 MEDIA.—The Director shall disseminate the ex25 planation published under subparagraph (A) 


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1 through brochures, pamphlets, radio, television, 

2 and other media that the Director determines 

3 are likely to reach prospective claimants. 

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

5 Director shall consult with the Attorney General, the Sec6 retary of Veterans Affairs, the Secretary of the Defense, 

7 the Secretary of Commerce, other Federal agencies, and 

8 State and local authorities, as determined to be necessary 

9 by the Director to— 

10 (1) ensure the efficient administration of the 

11 claims process; and 

12 (2) provide for local concerns. 

13 (h) ELECTION OF REMEDY.— 

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

15 to seek reimbursement from the United States for 

16 one or more injuries resulting from the unauthorized 

17 use, disclosure, or dissemination of personal identi18 fying information that was included in the data de19 scribed in section 3(2)(A) by— 

20 (A) submitting a claim under this Act; 

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

22 under chapter 171 of title 28, United States 

23 Code; or 

24 (C) bringing an authorized civil action 

25 under any other provision of law. 


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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 


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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 


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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. 


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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 


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