```

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4658 Engrossed in House (EH)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
108th CONGRESS
  2d Session
                                H. R. 4658

_______________________________________________________________________

                                 AN ACT

 
     To amend the Servicemembers Civil Relief Act to make certain 
   improvements and technical corrections to that Act, otherwise to 
improve legal protections provided to reserve component members called 
                to active duty, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Servicemembers and 
Veterans Legal Protections Act of 2004''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
        TITLE I--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

Sec. 101. Clarification of meaning of ``judgment'' as used in the Act.
Sec. 102. Requirements relating to waiver of rights under the Act.
Sec. 103. Right of servicemember plaintiffs to request stay of civil 
                            proceedings.
Sec. 104. Termination of leases.
Sec. 105. Prevention of double taxation of certain servicemembers.
              TITLE II--EMPLOYMENT AND REEMPLOYMENT RIGHTS

             Subtitle A--Extension of Health Care Coverage

Sec. 201. Two-year period of continuation of employer-sponsored health 
                            care coverage.
Sec. 202. Reinstatement of reporting requirements.
                       Subtitle B--Other Matters

Sec. 211. Requirement for employers to provide notice of rights and 
                            duties under USERRA.
Sec. 212. Demonstration project for referral of USERRA claims against 
                            Federal agencies to the Office of Special 
                            Counsel.
               TITLE III--MATTERS RELATING TO FIDUCIARIES

Sec. 301. Definition of fiduciary.
Sec. 302. Inquiry, investigations, and qualification of fiduciaries.
Sec. 303. Misuse of benefits by fiduciaries.
Sec. 304. Additional protections for beneficiaries with fiduciaries.
Sec. 305. Annual report.
Sec. 306. Annual adjustment in benefits thresholds.
Sec. 307. Effective dates.
                        TITLE IV--OTHER MATTERS

Sec. 401. Inventory of medical waste management activities at 
                            Department health-care facilities.
Sec. 402. Technical amendments to education program provisions.

        TITLE I--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

SEC. 101. CLARIFICATION OF MEANING OF ``JUDGMENT'' AS USED IN THE ACT.

    Section 101 of the Servicemembers Civil Relief Act (50 U.S.C. App. 
511) is amended by adding at the end the following new paragraph:
            ``(9) Judgment.--The term `judgment' means any judgment, 
        decree, order, or ruling, final or temporary.''.

SEC. 102. REQUIREMENTS RELATING TO WAIVER OF RIGHTS UNDER THE ACT.

    Section 107 of the Servicemembers Civil Relief Act (50 U.S.C. App. 
517) is amended--
            (1) In subsection (a), by inserting after the first 
        sentence the following new sentence: ``Any such waiver that 
        applies to an action listed in subsection (b) of this section 
        is effective only if it is in writing and is executed as an 
        instrument separate from the obligation or liability to which 
        it applies.'';
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Prominent Display of Certain Contract Rights Waivers.--Any 
waiver in writing of a right or protection provided by this Act that 
applies to a contract, lease, or similar legal instrument must be in at 
least 12 point type.''.

SEC. 103. RIGHT OF SERVICEMEMBER PLAINTIFFS TO REQUEST STAY OF CIVIL 
              PROCEEDINGS.

    Section 202(a) of the Servicemembers Civil Relief Act (50 U.S.C. 
App. 522(a)) is amended by inserting ``plaintiff or'' before 
``defendant''.

SEC. 104. TERMINATION OF LEASES.

    (a) Joint Leases.--Subsection (a) of section 305 of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 535) is amended to read 
as follows:
    ``(a) Termination by Lessee.--
            ``(1) In general.--The lessee on a lease described in 
        subsection (b) may, at the lessee's option, terminate the lease 
        at any time after--
                    ``(A) the lessee's entry into military service; or
                    ``(B) the date of the lessee's military orders 
                described in paragraph (1)(B) or (2)(B) of subsection 
                (b), as the case may be.
            ``(2) Joint leases.--A lessee's termination of a lease 
        pursuant to this subsection shall terminate any obligation a 
        dependent of the lessee may have under the lease.''.
    (b) Motor Vehicles Leases.--
            (1) Applicability to pcs orders from states outside 
        conus.--Subparagraph (B) of subsection (b)(2) of such section 
        is amended by striking ``military orders for'' and all that 
        follows through ``or to deploy'' and inserting ``military 
        orders--
                            ``(i) for a change of permanent station--
                                    ``(I) from a location in the 
                                continental United States to a location 
                                outside the continental United States; 
                                or
                                    ``(II) from a location in a State 
                                outside the continental United States 
                                to any location outside that State; or
                            ``(ii) to deploy''.
            (2) Definitions.--Such section is further amended by adding 
        at the end the following new subsection:
    ``(i) Definitions.--
            ``(1) Military orders.--The term `military orders', with 
        respect to a servicemember, means official military orders, or 
        any notification, certification, or verification from the 
        servicemember's commanding officer, with respect to the 
        servicemember's current or future military duty status.
            ``(2) Conus.--The term `continental United States' means 
        the 48 contiguous States and the District of Columbia.''.
    (c) Coverage of Individual Deployments.--Subsection (b) of such 
section is further amended in paragraph (1)(B) and paragraph (2)(B)(ii) 
(as designated by subsection (b) of this section) by inserting ``, or 
as an individual in support of a military operation,'' after ``deploy 
with a military unit''.

SEC. 105. PREVENTION OF DOUBLE TAXATION OF CERTAIN SERVICEMEMBERS.

    Section 511(c) of the Servicemembers Civil Relief Act (50 U.S.C. 
App. 571(c)) is amended by adding at the end the following new 
paragraph:
            ``(5) Use, excise, or similar taxes.--A tax jurisdiction 
        may not impose a use, excise, or similar tax on the personal 
        property of a nonresident servicemember when the laws of the 
        tax jurisdiction fail to provide a credit against such taxes 
        for sales, use, excise, or similar taxes previously paid on the 
        same property to another tax jurisdiction.''.

              TITLE II--EMPLOYMENT AND REEMPLOYMENT RIGHTS

             Subtitle A--Extension of Health Care Coverage

SEC. 201. TWO-YEAR PERIOD OF CONTINUATION OF EMPLOYER-SPONSORED HEALTH 
              CARE COVERAGE.

    (a) Improvement in Period of Coverage.--Subsection (a)(1)(A) of 
section 4317 of title 38, United States Code, is amended by striking 
``18-month period'' and inserting ``24-month period''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to elections made under such section 4317 on or after the date of 
the enactment of this Act.

SEC. 202. REINSTATEMENT OF REPORTING REQUIREMENTS.

    Section 4332 of title 38, United States Code, is amended in the 
matter preceding paragraph (1) by striking ``no later than February 1, 
1996, and annually thereafter through 2000'' and inserting ``no later 
than February 1, 2005, and annually thereafter''.

                       Subtitle B--Other Matters

SEC. 211. REQUIREMENT FOR EMPLOYERS TO PROVIDE NOTICE OF RIGHTS AND 
              DUTIES UNDER USERRA.

    (a) Notice.--Chapter 43 of title 38, United States Code, is amended 
by adding at the end the following new section:
``Sec. 4334. Notice of rights and duties
    ``(a) Requirement to Provide Notice.--Each employer shall provide 
to persons entitled to rights and benefits under this chapter a notice 
of the rights, benefits, and obligations of such persons and such 
employers under this chapter. The requirement for the provision of 
notice under this section may be met by the posting of the notice where 
employers customarily place notices for employees.
    ``(b) Content of Notice.--The Secretary shall provide to employers 
the text of the notice to be provided under this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``4334. Notice of rights and duties.''.
    (c) Implementation.--(1) Not later than the date that is 90 days 
after the date of the enactment of this Act, the Secretary of Labor 
shall make available to employers the notice required under section 
4334 of title 38, United States Code, as added by subsection (a).
    (2) The amendments made by this section shall apply to employers 
under chapter 43 of such title on and after the first date referred to 
in paragraph (1).

SEC. 212. DEMONSTRATION PROJECT FOR REFERRAL OF USERRA CLAIMS AGAINST 
              FEDERAL AGENCIES TO THE OFFICE OF SPECIAL COUNSEL.

    (a) Establishment of Project.--The Secretary of Labor and the 
Office of Special Counsel shall carry out a demonstration project under 
which certain claims against Federal executive agencies under the 
Uniformed Services Employment and Reemployment Rights Act under chapter 
43 of title 38, United States Code, are referred to, or otherwise 
received by, the Office of Special Counsel for assistance, including 
investigation and resolution of the claim as well as enforcement of 
rights with respect to the claim.
    (b) Referral of All Prohibited Personnel Action Claims to the 
Office of Special Counsel.--(1) Under the demonstration project, the 
Office of Special Counsel shall receive and investigate all claims 
under the Uniformed Services Employment and Reemployment Rights Act 
with respect to Federal executive agencies in cases where the Office of 
Special Counsel has jurisdiction over related claims pursuant to 
section 1212 of title 5, United States Code.
    (2) For purposes of paragraph (1), a related claim is a claim 
involving the same Federal executive agency and the same or similar 
factual allegations or legal issues as those being pursued under a 
claim under the Uniformed Services Employment and Reemployment Rights 
Act.
    (c) Referral of Other Claims Against Federal Executive Agencies.--
(1) Under the demonstration project, the Secretary--
            (A) shall refer to the Office of Special Counsel all claims 
        described in paragraph (2) made during the period of the 
        demonstration project; and
            (B) may refer any claim described in paragraph (2) filed 
        before the demonstration project that is pending before the 
        Secretary at the beginning of the demonstration project.
    (2) A claim referred to in paragraph (1) is a claim under chapter 
43 of title 38, United States Code, against a Federal executive agency 
by a claimant with a social security account number with an odd number 
as its terminal digit, or, in the case of a claim that does not contain 
a social security account number, a case number assigned to the claim 
with an odd number as its terminal digit.
    (d) Administration of Demonstration Project.--(1) The Office of 
Special Counsel shall administer the demonstration project. The 
Secretary shall cooperate with the Office of Special Counsel in 
carrying out the demonstration project.
    (2) In the case of any claim referred, or otherwise received by, to 
the Office of Special Counsel under the demonstration project, any 
reference to the ``Secretary'' in sections 4321, 4322, and 4326 of 
title 38, United States Code, is deemed a reference to the ``Office of 
Special Counsel''.
    (3) In the case of any claim referred to, or otherwise received by, 
the Office of Special Counsel under the demonstration project, the 
Office of Special Counsel shall retain administrative jurisdiction over 
the claim.
    (e) Period of Project.--The demonstration project shall be carried 
out during the period beginning on the date that is 60 days after the 
date of the enactment of this Act, and ending on September 30, 2007.
    (f) Evaluations and Report.--(1) The Comptroller General of the 
United States shall conduct periodic evaluations of the demonstration 
project under this section.
    (2) Not later than April 1, 2007, the Comptroller General shall 
submit to Congress a report on the evaluations conducted under 
paragraph (1). The report shall include the following information and 
recommendations:
            (A) A description of the operation and results of the 
        demonstration program, including--
                    (i) the number of claims described in subsection 
                (c) referred to, or otherwise received by, the Office 
                of Special Counsel and the number of such claims 
                referred to the Secretary of Labor, and
                    (ii) for each Federal executive agency, the number 
                of claims resolved, the type of corrective action 
                obtained, the period of time for final resolution of 
                the claim, and the results obtained.
            (B) An assessment of whether referral to the Office of 
        Special Counsel of claims under the demonstration project--
                    (i) improved services to servicemembers and 
                veterans; or
                    (ii) significantly reduced or eliminated 
                duplication of effort and unintended delays in 
                resolving meritorious claims of those servicemembers 
                and veterans.
            (C) An assessment of the feasibility and advisability of 
        referring all claims under chapter 43 of title 38, United 
        States Code, against Federal executive agencies to the Office 
        of Special Counsel for investigation and resolution.
            (D) Such other recommendations for administrative action or 
        legislation as the Comptroller General determines appropriate.
    (g) Definitions.--In this section:
            (1) The term ``Office of Special Counsel'' means the Office 
        of Special Counsel established by section 1211 of title 5, 
        United States Code.
            (2) The term ``Secretary'' means the Secretary of Labor.
            (3) The term ``Federal executive agency'' has the meaning 
        given that term in section 4303(5) of title 38, United States 
        Code.

               TITLE III--MATTERS RELATING TO FIDUCIARIES

SEC. 301. DEFINITION OF FIDUCIARY.

    (a) In General.--(1) Chapter 55 of title 38, United States Code, is 
amended by adding at the end the following new section:
``Sec. 5506. Definition of `fiduciary'
    ``For purposes of this chapter and chapter 61 of this title, the 
term `fiduciary' means--
            ``(1) a person who is a guardian, curator, conservator, 
        committee, or person legally vested with the responsibility or 
        care of a claimant (or a claimant's estate) or of a beneficiary 
        (or a beneficiary's estate); or
            ``(2) any other person having been appointed in a 
        representative capacity to receive money paid under any of the 
        laws administered by the Secretary for the use and benefit of a 
        minor, incompetent, or other beneficiary.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``5506. Definition of `fiduciary'.''.
    (b) Conforming Amendments to Section 5502.--Section 5502 of such 
title is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``other person'' 
                and inserting ``other fiduciary''; and
                    (B) in the second sentence of paragraph (2), by 
                inserting ``for benefits under this title'' after ``in 
                connection with rendering fiduciary services'';
            (2) in subsection (b), by striking ``guardian, curator, 
        conservator, or other person'' each place it appears and 
        inserting ``fiduciary''; and
            (3) in subsection (d), by striking ``guardian, curator, or 
        conservator'' and inserting ``fiduciary''.
    (c) Conforming Amendment to Section 6101.--Section 6101(a) of such 
title is amended by striking ``guardian, curator,'' and all that 
follows through ``beneficiary,'' and inserting ``fiduciary (as defined 
in section 5506 of this title) for the benefit of a minor, incompetent, 
or other beneficiary under laws administered by the Secretary,''.

SEC. 302. INQUIRY, INVESTIGATIONS, AND QUALIFICATION OF FIDUCIARIES.

    (a) In General.--Chapter 55 of title 38, United States Code, as 
amended by section 301(a)(1), is further amended by adding at the end 
the following new section:
``Sec. 5507. Inquiry, investigations, and qualification of fiduciaries
    ``(a) Any certification of a person for payment of benefits of a 
beneficiary to that person as such beneficiary's fiduciary under 
section 5502 of this title shall be made on the basis of--
            ``(1) an inquiry or investigation by the Secretary of the 
        fitness of that person to serve as fiduciary for that 
        beneficiary, such inquiry or investigation--
                    ``(A) to be conducted in advance of such 
                certification;
                    ``(B) to the extent practicable, to include a face-
                to-face interview with such person; and
                    ``(C) to the extent practicable, to include a copy 
                of a credit report for such person issued within one 
                year of the date of the proposed appointment;
            ``(2) adequate evidence that certification of that person 
        as fiduciary for that beneficiary is in the interest of such 
        beneficiary (as determined by the Secretary under regulations); 
        and
            ``(3) the furnishing of any bond that may be required by 
        the Secretary.
    ``(b) As part of any inquiry or investigation of any person under 
subsection (a), the Secretary shall request information concerning 
whether that person has been convicted of any offense under Federal or 
State law which resulted in imprisonment for more than one year. If 
that person has been convicted of such an offense, the Secretary may 
certify the person as a fiduciary only if the Secretary makes a 
specific finding that the person has been rehabilitated and is an 
appropriate person to act as fiduciary for the beneficiary concerned 
under the circumstances.
    ``(c)(1) In the case of a proposed fiduciary described in paragraph 
(2), the Secretary, in conducting an inquiry or investigation under 
subsection (a)(1), may carry out such inquiry or investigation on an 
expedited basis that may include waiver of any specific requirement 
relating to such inquiry or investigation, including the otherwise 
applicable provisions of subparagraphs (A), (B), and (C) of such 
subsection. Any such inquiry or investigation carried out on such an 
expedited basis shall be carried out under regulations prescribed for 
purposes of this section.
    ``(2) Paragraph (1) applies with respect to a proposed fiduciary 
who is--
            ``(A) the parent (natural, adopted, or stepparent) of a 
        beneficiary who is a minor;
            ``(B) the spouse or parent of an incompetent beneficiary;
            ``(C) a person who has been appointed a fiduciary of the 
        beneficiary by a court of competent jurisdiction; or
            ``(D) being appointed to manage an estate where the annual 
        amount of veterans benefits to be managed by the proposed 
        fiduciary does not exceed $3600, as adjusted pursuant to 
        section 5312 of this title.
    ``(d) Temporary Fiduciaries.--When in the opinion of the Secretary, 
a temporary fiduciary is needed in order to protect the assets of the 
beneficiary while a determination of incompetency is being made or 
appealed or a fiduciary is appealing a determination of misuse, the 
Secretary may appoint one or more temporary fiduciaries for a period 
not to exceed 120 days. If a final decision has not been made within 
120 days, the Secretary may not continue the appointment of the 
fiduciary without obtaining a court order for appointment of a 
guardian, conservator, or other fiduciary under the authority provided 
in section 5502(b) of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item added by section 
301(a)(2) the following new item:

``5507. Inquiry, investigations, and qualification of fiduciaries.''.

SEC. 303. MISUSE OF BENEFITS BY FIDUCIARIES.

    (a) Protection of Veterans Benefits When Administered by 
Fiduciaries.--(1) Chapter 61 of title 38, United States Code, is 
amended by adding at the end the following new sections:
``Sec. 6106. Misuse of benefits by fiduciaries
    ``(a) Fee Forfeiture in Case of Benefit Misuse by Fiduciaries.--A 
fiduciary may not collect a fee from a beneficiary for any month with 
respect to which the Secretary or a court of competent jurisdiction has 
determined that the fiduciary misused all or part of the individual's 
benefit, and any amount so collected by the fiduciary as a fee for such 
month shall be treated as a misused part of the individual's benefit.
    ``(b) Liability of Fiduciaries for Misused Benefits.--(1) If the 
Secretary or a court of competent jurisdiction determines that a 
fiduciary that is not a Federal, State, or local government agency has 
misused all or part of a beneficiary's benefit that was paid to such 
fiduciary, the fiduciary shall be liable for the amount misused, and 
such amount (to the extent not repaid by the fiduciary) shall be 
treated as an erroneous payment of benefits under this title to the 
fiduciary for purposes of laws pertaining to the recovery of 
overpayments. The amount of such overpayment shall constitute a 
liability of such fiduciary to the United States and may be recovered 
in the same manner as any other debt due the United States. Subject to 
paragraph (2), upon recovering all or any part of such amount, the 
Secretary shall pay an amount equal to the recovered amount to such 
beneficiary or such beneficiary's successor fiduciary.
    ``(2) The total of the amounts paid to a beneficiary (or a 
beneficiary's successor fiduciary) under paragraph (1) and under 
section 6107 of this title may not exceed the total benefit amount 
misused by the fiduciary with respect to that beneficiary.
    ``(c) Misuse of Benefits Defined.--For purposes of this chapter, 
misuse of benefits by a fiduciary occurs in any case in which the 
fiduciary receives payment, under any of laws administered by the 
Secretary, for the use and benefit of a beneficiary and uses such 
payment, or any part thereof, for a use other than for the use and 
benefit of such beneficiary or that beneficiary's dependents. Retention 
by a fiduciary of an amount of a benefit payment as a fiduciary fee or 
commission, or as attorney's fees (including expenses) and court costs, 
if authorized by the Secretary or a court of competent jurisdiction, 
shall be considered to be for the use or benefit of such beneficiary.
    ``(d) Regulations.--The Secretary may prescribe by regulation the 
meaning of the term `use and benefit' for purposes of this section.
    ``(e) Finality of Determinations.--A determination by the Secretary 
that a fiduciary has misused benefits is a decision of the Secretary 
for purposes of section 511(a) of this title.
``Sec. 6107. Reissuance of benefits
    ``(a) Negligent Failure by Secretary.--(1) In any case in which the 
negligent failure of the Secretary to investigate or monitor a 
fiduciary results in misuse of benefits by the fiduciary, the Secretary 
shall pay to the beneficiary or the beneficiary's successor fiduciary 
an amount equal to the amount of benefits that were so misused.
    ``(2) There shall be considered to have been a negligent failure by 
the Secretary to investigate and monitor a fiduciary in the following 
cases:
            ``(A) A case in which the Secretary failed to timely review 
        a fiduciary's accounting.
            ``(B) A case in which the Secretary was notified of 
        allegations of misuse, but failed to act in a timely manner to 
        terminate the fiduciary.
            ``(C) In any other case in which actual negligence is 
        shown.
    ``(b) Reissuance of Misused Benefits in Other Cases.--(1) In any 
case in which a fiduciary described in paragraph (2) misuses all or 
part of an individual's benefit paid to such fiduciary, the Secretary 
shall pay to the beneficiary or the beneficiary's successor fiduciary 
an amount equal to the amount of such benefit so misused.
    ``(2) Paragraph (1) applies to a fiduciary that--
            ``(A) is not an individual; or
            ``(B) is an individual who, for any month during a period 
        when misuse occurs, serves 10 or more individuals who are 
        beneficiaries under this title.
    ``(c) Recoupment of Amounts Reissued.--In any case in which the 
Secretary reissues a benefit payment (in whole or in part) under 
subsection (a) or (b), the Secretary shall make a good faith effort to 
obtain recoupment from the fiduciary to whom the payment was originally 
made.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new items:

``6106. Misuse of benefits by fiduciaries.
``6107. Reissuance of benefits.''.

SEC. 304. ADDITIONAL PROTECTIONS FOR BENEFICIARIES WITH FIDUCIARIES.

    (a) Onsite Reviews and Required Accountings.--(1) Chapter 55 of 
title 38, United States Code, as amended by section 302(a), is further 
amended by adding at the end the following new sections:
``Sec. 5508. Periodic onsite reviews of institutional fiduciaries
    ``In addition to such other reviews of fiduciaries as the Secretary 
may otherwise conduct, the Secretary shall provide for the periodic 
onsite review of any person or agency located in the United States that 
receives the benefits payable under laws administered by the Secretary 
to another individual pursuant to the appointment of such person or 
agency as a fiduciary under section 5502(a)(1) of this title in any 
case in which the fiduciary is serving in that capacity with respect to 
more than 20 beneficiaries and the total annual amount of such benefits 
exceeds $50,000, as adjusted pursuant to section 5312 of this title.
``Sec. 5509. Authority to redirect delivery of benefit payments when a 
              fiduciary fails to provide required accounting
    ``(a) Required Reports and Accountings.--The Secretary may require 
a fiduciary to file a report or accounting pursuant to regulations 
prescribed by the Secretary.
    ``(b) Actions Upon Failure to File.--In any case in which a 
fiduciary fails to submit a report or accounting required by the 
Secretary under subsection (a), the Secretary may, after furnishing 
notice to such fiduciary and the beneficiary entitled to such payment 
of benefits, require that such fiduciary appear in person at a regional 
office of the Department serving the area in which the beneficiary 
resides in order to receive such payments.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item added by section 302(b) the following 
new items:

``5508. Periodic onsite reviews of institutional fiduciaries.
``5509. Authority to redirect delivery of benefit payments when a 
                            fiduciary fails to provide required 
                            accounting.''.
    (b) Civil Monetary Penalties; Judicial Orders of Restitution.--(1) 
Chapter 61 of title 38, United States Code, as amended by section 
303(a), is further amended by adding at the end the following new 
sections:
``Sec. 6108. Civil monetary penalties
    ``(a) Penalty for Conversion.--Any person (including an 
organization, agency, or other entity) who, having received, while 
acting in the capacity of a fiduciary pursuant to section 5502 of this 
title, a payment under a law administered by the Secretary for the use 
and benefit of another individual, converts such payment, or any part 
thereof, to a use that such person knows or should know is other than 
for the use and benefit of such other individual shall be subject to, 
in addition to any other penalty that may be prescribed by law, a civil 
monetary penalty assessed by the Secretary of not more than $5,000 for 
each such conversion.
    ``(b) Penalty in Lieu of Damages.--Any person who makes a 
conversion of a payment described in subsection (a) and is subject to a 
civil monetary penalty under that subsection by reason of such 
conversion shall also be subject to an assessment by the Secretary, in 
lieu of damages sustained by the United States resulting from the 
conversion, of not more than twice the amount of any payments so 
converted.
    ``(c) Costs of Recovery.--From amounts collected under this 
section, the amount necessary to recoup the Department's costs of such 
collection shall be credited to appropriations currently available for 
the same purpose as the appropriation that incurred those costs, to 
remain available until expended.
``Sec. 6109. Authority for judicial orders of restitution
    ``(a) Any Federal court, when sentencing a defendant convicted of 
an offense arising from the misuse of benefits under this title, may 
order, in addition to or in lieu of any other penalty authorized by 
law, that the defendant make restitution to the Department.
    ``(b) Sections 3612, 3663, and 3664 of title 18 shall apply with 
respect to the issuance and enforcement of orders of restitution under 
subsection (a). In so applying those sections, the Department shall be 
considered the victim.
    ``(c) If the court does not order restitution, or orders only 
partial restitution, under subsection (a), the court shall state on the 
record the reasons therefor.
    ``(d)(1) Except as provided in paragraph (2), amounts received or 
recovered by the Secretary pursuant to an order of restitution under 
subsection (a), to the extent and in the amounts provided in advance in 
appropriations Acts, shall be available to defray expenses incurred by 
the Office of the Inspector General for the investigation of 
fiduciaries under this title.
    ``(2) Paragraph (1) shall not apply with respect to amounts 
received in connection with misuse by a fiduciary of funds paid as 
benefits under laws administered by the Secretary. Such amounts shall 
be paid to the individual whose benefits were misused unless the 
Secretary has previously reissued the misused benefits, in which case 
the amounts shall be treated in the same manner as overpayments 
recouped by the Secretary and shall be deposited to the credit of the 
applicable revolving fund, trust fund, or appropriation.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item added by section 303(b) the following 
new items:

``6108. Civil monetary penalties.
``6109. Authority for judicial orders of restitution.''.

SEC. 305. ANNUAL REPORT.

    (a) In General.--Chapter 55 of title 38, United States Code, as 
amended by section 304(a)(1), is further amended by adding at the end 
the following new section:
``Sec. 5510. Annual report
    ``The Secretary shall include in the Annual Benefits Report of the 
Veterans Benefits Administration or the Secretary's Annual Performance 
and Accountability Report information concerning fiduciaries who have 
been appointed to receive payments for beneficiaries of the Department. 
As part of such information, the Secretary shall separately set forth 
the following:
            ``(1) The number of beneficiaries in each category 
        (veteran, surviving spouse, child, adult disabled child, or 
        parent).
            ``(2) The types of benefit being paid (compensation, 
        pension, dependency and indemnity compensation, death pension 
        or benefits payable to a disabled child under chapter 18 of 
        this title).
            ``(3) The total annual amounts and average annual amounts 
        of benefits paid to fiduciaries for each category and type of 
        benefit.
            ``(4) The number of fiduciaries who are the (spouse, 
        parent, legal custodian, court-appointed fiduciary, 
        institutional fiduciary, custodian in fact, and supervised 
        direct payment).
            ``(5) The number of cases in which the fiduciary was 
        changed by the Secretary because of a finding that benefits had 
        been misused.
            ``(6) How such cases of misuse of benefits were addressed 
        by the Secretary.
            ``(7) The final disposition of such cases of misuse of 
        benefits, including the number and dollar amount of any civil 
        or criminal penalties imposed.
            ``(8) Such other information as the Secretary considers 
        appropriate.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the items added by the 
amendment made by section 304(a)(2) the following new item:

``5510. Annual report.''.

SEC. 306. ANNUAL ADJUSTMENT IN BENEFITS THRESHOLDS.

    Section 5312(b)(1) of title 38, United States Code, is amended by 
inserting ``and the annual benefit amount limitations under sections 
5507(c)(2)(D) and 5508 of this title,'' after ``(d)(3) of such 
section,''.

SEC. 307. EFFECTIVE DATES.

    (a) In General.--Except as otherwise provided, this title and the 
amendments made by this title shall take effect on the first day of the 
seventh month beginning after the date of the enactment of this Act.
    (b) Special Rules.--(1) Section 5510 of title 38, United States 
Code, as added by section 305(a), shall take effect on the date of the 
enactment of this Act.
    (2) Sections 6106 and 6107 of title 38, United States Code, as 
added by section 303(a), shall apply with respect to any determinations 
by the Secretary of Veterans Affairs made after the date of the 
enactment of this Act of misuse of funds by a fiduciary.

                        TITLE IV--OTHER MATTERS

SEC. 401. INVENTORY OF MEDICAL WASTE MANAGEMENT ACTIVITIES AT 
              DEPARTMENT HEALTH-CARE FACILITIES.

    (a) Inventory.--The Secretary of Veterans Affairs shall establish 
and maintain a national inventory of medical waste management 
activities in the health-care facilities of the Department of Veterans 
Affairs. The inventory shall include the following:
            (1) A statement of the current national policy of the 
        Department on managing and disposing of medical waste, 
        including regulated medical waste in all its forms.
            (2) A description of the program of each geographic service 
        area of the Department to manage and dispose of medical waste, 
        including general medical waste and regulated medical waste, 
        with a description of the primary methods used in those 
        programs and the associated costs of those programs, with cost 
        information shown separately for in-house costs (including 
        full-time equivalent employees) and contract costs.
    (b) Report.--Not later than April 15, 2005, the Secretary of 
Veterans Affairs shall submit to the Committees on Veterans' Affairs of 
the Senate and House of Representatives a report on medical waste 
management activities in the facilities of the Department of Veterans 
Affairs. The report shall include the following:
            (1) The inventory established under subsection (a), 
        including all the matters specified in that subsection.
            (2) A listing of each violation of medical waste management 
        and disposal regulations reported at any health-care facility 
        of the Department over the preceding five years by any State or 
        Federal agency, along with an explanation of any remedial or 
        other action taken by the Secretary in response to each such 
        reported violation.
            (3) A description of any plans to modernize, consolidate, 
        or otherwise improve the management of medical waste and 
        disposal programs at health-care facilities of the Department, 
        including the projected costs associated with such plans and 
        any barriers to achieving goals associated with such plans.
            (4) An assessment or evaluation of the available methods of 
        disposing of medical waste and identification of which of those 
        methods are more desirable from an environmental perspective in 
        that they would be least likely to result in contamination of 
        air or water or otherwise cause future cleanup problems.

SEC. 402. TECHNICAL AMENDMENTS TO EDUCATION PROGRAM PROVISIONS.

    (a) Inapplicability of Wage Requirements for On-Job Training 
Programs Leading to Self-Employment.--(1) Section 3677(b) is amended by 
adding at the end the following new paragraph:
    ``(3) Notwithstanding paragraph (1)(A) and subsection (c)(8), no 
wages shall be required to be paid an eligible person or veteran by a 
training establishment described in section 3452(e)(2) of this 
title.''.
    (2) Section 3452(e), as amended by section 301 of the Veterans 
Benefits Act of 2003 (Public Law 108-183; 117 Stat. 2658), is amended 
by striking ``An'' in paragraph (2) and inserting ``For the period 
beginning on October 1, 2005, and ending on September 30, 2010, an''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if included in the enactment of section 301 of the 
Veterans Benefits Act of 2003 (Public Law 108-183; 117 Stat. 2658).

            Passed the House of Representatives October 7 (legislative 
      day, October 6), 2004.

            Attest:

                                                                 Clerk.
108th CONGRESS

  2d Session

                               H. R. 4658

_______________________________________________________________________

                                 AN ACT

     To amend the Servicemembers Civil Relief Act to make certain 
   improvements and technical corrections to that Act, otherwise to 
improve legal protections provided to reserve component members called 
                to active duty, and for other purposes.
```