112TH CONGRESS 

1ST SESSION H. R. 2349 

AN ACT 

To amend title 38, United States Code, to improve the 

determination of annual income with respect to pensions 

for certain veterans, to direct the Secretary of Veterans 

Affairs to establish a pilot program to assess the skills 

of certain employees and managers of the Veterans Benefits Administration, and for other purposes. 
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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’ Benefits Act 

5 of 2011’’. 

6 SEC. 2. ASSESSMENT OF CLAIMS-PROCESSING SKILLS 

7 PILOT PROGRAM. 

8 (a) PILOT PROGRAM.—Commencing not later than 

9 180 days after the date of the enactment of this Act, in 

10 addition to providing employee certification under section 

11 7732A of title 38, United States Code, the Secretary of 

12 Veterans Affairs shall carry out a pilot program to assess 

13 skills and provide training described under subsection (b). 

14 (b) BIENNIAL SKILLS ASSESSMENT AND INDIVID15 UALIZED TRAINING.— 

16 (1) IN GENERAL.—The Secretary shall— 

17 (A) biennially assess the skills of appro18 priate employees and managers of the Veterans 

19 Benefits Administration who are responsible for 

20 processing claims for compensation and pension 

21 benefits under the laws administered by the 

22 Secretary, including by requiring such employ23 ees and managers to take the examination pro24 vided under section 7732A(a)(1) of title 38, 

25 United States Code; and 
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1 (B) on the basis of the results of such as2 sessment and examination, and on any relevant 

3 regional office quality review, develop and im4 plement an individualized training plan related 

5 to such skills for each such employee and man6 ager. 

7 (2) REMEDIATION.— 

8 (A) REMEDIATION PROVIDED.—In pro9 viding training under paragraph (1)(B), if any 

10 employee or manager receives a less than satis11 factory result on any portion of an assessment 

12 under paragraph (1)(A), the Secretary shall 

13 provide such employee or manager with remedi14 ation of any deficiency in the skills related to 

15 such portion of the assessment and, within a 

16 reasonable period following the remediation, 

17 shall require the employee or manager to take 

18 the examination again. 

19 (B) PERSONNEL ACTIONS.—In accordance 

20 with titles 5 and 38, United States Code, the 

21 Secretary shall take appropriate personnel ac22 tions with respect to any employee or manager 

23 who, after being given two opportunities for re24 mediation under subparagraph (A), does not re-
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1 ceive a satisfactory result on an assessment 

2 under paragraph (1)(A). 

3 (c) LOCATIONS AND DURATION.—The Secretary shall 

4 carry out the pilot program under this section at five re5 gional offices of the Veterans Benefits Administration dur6 ing the four-year period beginning on the date of the com7 mencement of the pilot program. 

8 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to carry out this section a 

10 total of $5,000,000 for fiscal years 2012 through 2016. 

11 (e) REPORTS.—Not later than November 1 of each 

12 year in which the pilot program under this section is car13 ried out, the Secretary shall submit to the Committee on 

14 Veterans’ Affairs of the House of Representatives and the 

15 Committee on Veterans’ Affairs of the Senate a report on 

16 any assessments and training conducted under this section 

17 during the previous year. Each such report shall include— 

18 (1) a summary of— 

19 (A) the results of the assessments under 

20 subsection (b)(1)(A); 

21 (B) remediation provided under subsection 

22 (b)(2)(A); and 

23 (C) personnel actions taken under sub24 section (b)(2)(B); and 
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1 (2) any changes made to the training program 

2 under subsection (b)(1)(B) based on the results of 

3 such assessments and remediation and the examina4 tions provided under section 7732A(a)(1) of title 38, 

5 United States Code. 

6 SEC. 3. EXCLUSION OF CERTAIN REIMBURSEMENTS OF EX7 PENSES FROM DETERMINATION OF ANNUAL 

8 INCOME WITH RESPECT TO PENSIONS FOR 

9 VETERANS AND SURVIVING SPOUSES AND 

10 CHILDREN OF VETERANS. 

11 (a) IN GENERAL.—Paragraph (5) of section 1503(a) 

12 of title 38, United States Code, is amended to read as 

13 follows: 

14 ‘‘(5) payments regarding— 

15 ‘‘(A) reimbursements of any kind (includ16 ing insurance settlement payments) for— 

17 ‘‘(i) expenses related to the repay18 ment, replacement, or repair of equipment, 

19 vehicles, items, money, or property result20 ing from— 

21 ‘‘(I) any accident (as defined in 

22 regulations which the Secretary shall 

23 prescribe), but the amount excluded 

24 under this subclause shall not exceed 

25 the greater of the fair market value or 
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1 reasonable replacement value of the 

2 equipment or vehicle involved at the 

3 time immediately preceding the acci4 dent; 

5 ‘‘(II) any theft or loss (as defined 

6 in regulations which the Secretary 

7 shall prescribe), but the amount ex8 cluded under this subclause shall not 

9 exceed the greater of the fair market 

10 value or reasonable replacement value 

11 of the item or the amount of the 

12 money (including legal tender of the 

13 United States or of a foreign country) 

14 involved at the time immediately pre15 ceding the theft or loss; or 

16 ‘‘(III) any casualty loss (as de17 fined in regulations which the Sec18 retary shall prescribe), but the 

19 amount excluded under this subclause 

20 shall not exceed the greater of the fair 

21 market value or reasonable replace22 ment value of the property involved at 

23 the time immediately preceding the 

24 casualty loss; and 
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1 ‘‘(ii) medical expenses resulting from 

2 any accident, theft, loss, or casualty loss 

3 (as defined in regulations which the Sec4 retary shall prescribe), but the amount ex5 cluded under this clause shall not exceed 

6 the costs of medical care provided to the 

7 victim of the accident, theft, loss, or cas8 ualty loss; and 

9 ‘‘(B) pain and suffering (including insur10 ance settlement payments and general damages 

11 awarded by a court) related to an accident, 

12 theft, loss, or casualty loss, but the amount ex13 cluded under this subparagraph shall not exceed 

14 an amount determined by the Secretary on a 

15 case-by-case basis;’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 subsection (a) shall take effect on the date that is one 

18 year after the date of the enactment of this Act. 

19 (c) EXTENSION OF AUTHORITY TO OBTAIN CERTAIN

20 INFORMATION FROM DEPARTMENT OF TREASURY.—Sec21 tion 5317(g) of title 38, United States Code, is amended 

22 by striking ‘‘2011’’ and inserting ‘‘2013’’. 
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1 SEC. 4. AUTHORIZATION OF USE OF ELECTRONIC COMMU2 NICATION TO PROVIDE NOTICE TO CLAIM3 ANTS FOR BENEFITS UNDER LAWS ADMINIS4 TERED BY THE SECRETARY OF VETERANS AF5 FAIRS. 

6 (a) IN GENERAL.—Section 5103 of title 38, United 

7 States Code, is amended— 

8 (1) in subsection (a)(1)— 

9 (A) by striking ‘‘Upon receipt of a com10 plete or substantially complete application, the’’ 

11 and inserting ‘‘The’’; 

12 (B) by striking ‘‘notify’’ and inserting 

13 ‘‘provide to’’; and 

14 (C) by inserting ‘‘by the most effective 

15 means available, including electronic commu16 nication or notification in writing’’ before ‘‘of 

17 any information’’; and 

18 (2) in subsection (b), by adding at the end the 

19 following new paragraphs: 

20 ‘‘(4) Nothing in this section shall require the Sec21 retary to provide notice for a subsequent claim that is filed 

22 while a previous claim is pending if the notice previously 

23 provided for such pending claim— 

24 ‘‘(A) provides sufficient notice of the informa25 tion and evidence necessary to substantiate such 

26 subsequent claim; and 
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1 ‘‘(B) was sent within one year of the date on 

2 which the subsequent claim was filed. 

3 ‘‘(5)(A) This section shall not apply to any claim or 

4 issue where the Secretary may award the maximum ben5 efit in accordance with this title based on the evidence of 

6 record. 

7 ‘‘(B) For purposes of this paragraph, the term ‘max8 imum benefit’ means the highest evaluation assignable in 

9 accordance with the evidence of record, as long as such 

10 evaluation is supported by such evidence of record at the 

11 time the decision is rendered.’’. 

12 (b) CONSTRUCTION.—Nothing in the amendments 

13 made by subsection (a) shall be construed as eliminating 

14 any requirement with respect to the contents of a notice 

15 under section 5103 of such title that are required under 

16 regulations prescribed pursuant to subsection (a)(2) of 

17 such section as of the date of the enactment of this Act. 

18 SEC. 5. DUTY TO ASSIST CLAIMANTS IN OBTAINING PRI19 VATE RECORDS. 

20 (a) IN GENERAL.—Section 5103A(b) of title 38, 

21 United States Code, is amended to read as follows: 

22 ‘‘(b) ASSISTANCE IN OBTAINING PRIVATE

23 RECORDS.—(1) As part of the assistance provided under 

24 subsection (a), the Secretary shall make reasonable efforts 

25 to obtain relevant private records. 
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1 ‘‘(2)(A) Whenever the Secretary, after making such 

2 reasonable efforts, is unable to obtain all of the relevant 

3 records sought, the Secretary shall notify the claimant 

4 that the Secretary is unable to obtain records with respect 

5 to the claim. Such a notification shall— 

6 ‘‘(i) identify the records the Secretary is unable 

7 to obtain; 

8 ‘‘(ii) briefly explain the efforts that the Sec9 retary made to obtain such records; and 

10 ‘‘(iii) explain that the Secretary will decide the 

11 claim based on the evidence of record but that this 

12 section does not prohibit the submission of records 

13 at a later date if such submission is otherwise al14 lowed. 

15 ‘‘(B) The Secretary shall make not less than two re16 quests to a custodian of a private record in order for an 

17 effort to obtain relevant private records to be treated as 

18 reasonable under this section, unless it is made evident 

19 by the first request that a second request would be futile 

20 in obtaining such records. 

21 ‘‘(3)(A) This section shall not apply if the evidence 

22 of record allows for the Secretary to award the maximum 

23 benefit in accordance with this title based on the evidence 

24 of record. 
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1 ‘‘(B) For purposes of this paragraph, the term ‘max2 imum benefit’ means the highest evaluation assignable in 

3 accordance with the evidence of record, as long as such 

4 evaluation is supported by such evidence of record at the 

5 time the decision is rendered. 

6 ‘‘(4) Under regulations prescribed by the Secretary, 

7 the Secretary— 

8 ‘‘(A) shall encourage claimants to submit rel9 evant private medical records of the claimant to the 

10 Secretary if such submission does not burden the 

11 claimant; and 

12 ‘‘(B) in obtaining relevant private records under 

13 paragraph (1), may require the claimant to author14 ize the Secretary to obtain such records if such au15 thorization is required to comply with Federal, 

16 State, or local law.’’. 

17 (b) PUBLIC RECORDS.—Section 5103A(c) of such 

18 title is amended to read as follows: 

19 ‘‘(c) OBTAINING RECORDS FOR COMPENSATION

20 CLAIMS.—(1) In the case of a claim for disability com21 pensation, the assistance provided by the Secretary under 

22 this section shall include obtaining the following records 

23 if relevant to the claim: 

24 ‘‘(A) The claimant’s service medical records 

25 and, if the claimant has furnished the Secretary in-
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1 formation sufficient to locate such records, other rel2 evant records pertaining to the claimant’s active 

3 military, naval, or air service that are held or main4 tained by a governmental entity. 

5 ‘‘(B) Records of relevant medical treatment or 

6 examination of the claimant at Department health7 care facilities or at the expense of the Department, 

8 if the claimant furnishes information sufficient to lo9 cate those records. 

10 ‘‘(C) Any other relevant records held by any 

11 Federal department or agency that the claimant ade12 quately identifies and authorizes the Secretary to ob13 tain. 

14 ‘‘(2) Whenever the Secretary attempts to obtain 

15 records from a Federal department or agency under this 

16 subsection, the efforts to obtain those records shall con17 tinue until the records are obtained unless it is reasonably 

18 certain that such records do not exist or that further ef19 forts to obtain those records would be futile.’’. 

20 SEC. 6. CONDITIONS FOR TREATMENT OF CERTAIN PER21 SONS AS ADJUDICATED MENTALLY INCOM22 PETENT FOR CERTAIN PURPOSES. 

23 (a) IN GENERAL.—Chapter 55 of title 38, United 

24 States Code, is amended by adding at the end the fol25 lowing new section: 
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1 ‘‘§ 5511. Conditions for treatment of certain persons 

2 as adjudicated mentally incompetent for 

3 certain purposes 

4 ‘‘In any case arising out of the administration by the 

5 Secretary of laws and benefits under this title, a person 

6 who is mentally incapacitated, deemed mentally incom7 petent, or experiencing an extended loss of consciousness 

8 shall not be considered adjudicated as a mental defective 

9 under subsection (d)(4) or (g)(4) of section 922 of title 

10 18 without the order or finding of a judge, magistrate, 

11 or other judicial authority of competent jurisdiction that 

12 such person is a danger to himself or herself or others.’’. 

13 (b) CLERICAL AMENDMENT.—The table of sections 

14 at the beginning of chapter 55 of such title is amended 

15 by adding at the end the following new item: 

‘‘5511. Conditions for treatment of certain persons as adjudicated mentally incompetent for certain purposes.’’. 

16 SEC. 7. REINSTATEMENT OF PENALTIES FOR CHARGING 

17 VETERANS UNAUTHORIZED FEES. 

18 (a) IN GENERAL.—Section 5905 of title 38, United 

19 States Code, is amended to read as follows: 

20 ‘‘§ 5905. Penalty for certain acts 

21 ‘‘Except as provided in section 5904 or 1984 of this 

22 title, whoever— 

23 ‘‘(1) in connection with a proceeding before the 

24 Department, knowingly solicits, contracts for, 
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1 charges, or receives any fee or compensation in con2 nection for— 

3 ‘‘(A) the provision of advice on how to file 

4 a claim for benefits under the laws adminis5 tered by the Secretary; or 

6 ‘‘(B) the preparation, presentation, or 

7 prosecution of such a claim before the date on 

8 which a notice of disagreement is filed in a pro9 ceeding on the claim, 

10 or attempts to do so; 

11 ‘‘(2) unlawfully withholds from any claimant or 

12 beneficiary any part of a benefit or claim under the 

13 laws administered by the Secretary that is allowed 

14 and due to the claimant or beneficiary, or attempts 

15 to do so; 

16 ‘‘(3) commits an offense punishable by this 

17 chapter, or aids, abets, counsels, commands, or pro18 cures the commission of such an act; or 

19 ‘‘(4) causes an act to be done, which if directly 

20 performed would be punishable by this chapter, 

21 shall be fined as provided in title 18, or imprisoned for 

22 not more than one year, or both.’’. 

23 (b) EFFECTIVE DATE.—The amendment made by 

24 subsection (a) shall apply with respect to acts committed 

25 after the date of the enactment of this Act. 
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1 SEC. 8. PERFORMANCE AWARDS IN THE SENIOR EXECU2 TIVE SERVICE. 

3 For each of fiscal years 2012 through 2016, the Sec4 retary of Veterans Affairs may not pay more than 

5 $2,000,000 in performance awards under section 5384 of 

6 title 5, United States Code. 

7 SEC. 9. BUDGETARY EFFECTS OF THIS ACT. 

8 The budgetary effects of this Act, for the purpose of 

9 complying with the Statutory Pay-As-You-Go Act of 2010, 

10 shall be determined by reference to the latest statement 

11 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

12 Act, submitted for printing in the Congressional Record 

13 by the Chairman of the House Budget Committee, pro14 vided that such statement has been submitted prior to the 

15 vote on passage. 

Passed the House of Representatives October 11, 

2011. 

Attest: 

Clerk. 
112TH CONGRESS 

1ST SESSION H. R. 2349 

AN ACT 

To amend title 38, United States Code, to improve 

tration, and for other purposes. and managers of the Veterans Benefits Adminisprogram to assess the skills of certain employees Secretary of Veterans Affairs to establish a pilot to pensions for certain veterans, to direct the the determination of annual income with respect