Be it enacted by the Senate and House of Representa-
tives 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 Fed-
eral 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 RE-
LIEF 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 tem-
porary.’’.
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 sub-
section (d); and
(3) by inserting after subsection (b) the fol-
lowing 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 RE-
QUEST STAY OF CIVIL PROCEEDINGS.
Section 202(a) of the Servicemembers Civil Relief Act
(50 U.S.C. App. 522(a)) is amended by inserting ‘‘plain-
tiff 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 de-
scribed in subsection (b) may, at the lessee’s option,
terminate the lease at any time after—
‘‘(A) the lessee’s entry into military serv-
ice; or
‘‘(B) the date of the lessee’s military or-
ders 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 conti-
nental United States to a location out-
side 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 offi-
cial military orders, or any notification, certification,
or verification from the servicemember’s com-
manding 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 Dis-
trict of Columbia.’’.
(c) COVERAGE
OF INDIVIDUAL DEPLOYMENTS.—
Subsection (b) of such section is further amended in para-
graph (1)(B) and paragraph (2)(B)(ii) (as designated by
subsection (b) of this section) by inserting ‘‘, or as an indi-
vidual 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 EM-
PLOYER-SPONSORED 
HEALTH 
CARE 
COV-
ERAGE.
(a) IMPROVEMENT IN PERIOD OF COVERAGE.—Sub-
section (a)(1)(A) of section 4317 of title 38, United States
Code, is amended by striking ‘‘18-month period’’ and in-
serting ‘‘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 REQUIRE-
MENTS.
Section 4332 of title 38, United States Code, is
amended in the matter preceding paragraph (1) by strik-
ing ‘‘no later than February 1, 1996, and annually there-
after through 2000’’ and inserting ‘‘no later than Feb-
ruary 1, 2005, and annually thereafter’’.
ployers 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 AGEN-
CIES 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 re-
ferred to, or otherwise received by, the Office of Special
Counsel for assistance, including investigation and resolu-
tion of the claim as well as enforcement of rights with
respect to the claim.
(b) REFERRAL OF ALL PROHIBITED PERSONNEL AC-
TION 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 FED-
ERAL EXECUTIVE AGENCIES.—(1) Under the demonstra-
tion 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 se-
curity 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 admin-
ister the demonstration project. The Secretary shall co-
operate 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 Spe-
cial Counsel’’.
(3) In the case of any claim referred to, or otherwise
received by, the Office of Special Counsel under the dem-
onstration project, the Office of Special Counsel shall re-
tain 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 Comp-
troller General of the United States shall conduct periodic
evaluations of the demonstration project under this sec-
tion.
(2) Not later than April 1, 2007, the Comptroller
General shall submit to Congress a report on the evalua-
tions conducted under paragraph (1). The report shall in-
clude 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 sub-
section (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 correc-
tive action obtained, the period of time for final
resolution of the claim, and the results ob-
tained.
(B) An assessment of whether referral to the
Office of Special Counsel of claims under the dem-
onstration project—
(i) improved services to servicemembers
and veterans; or
(ii) significantly reduced or eliminated du-
plication of effort and unintended delays in re-
solving 
meritorious 
claims 
of 
those
servicemembers and veterans.
(C) An assessment of the feasibility and advis-
ability of referring all claims under chapter 43 of
title 38, United States Code, against Federal execu-
tive agencies to the Office of Special Counsel for in-
vestigation and resolution.
(D) Such other recommendations for adminis-
trative action or legislation as the Comptroller Gen-
eral 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 fol-
lowing new section:
‘‘§ 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, con-
servator, committee, or person legally vested with
the responsibility or care of a claimant (or a claim-
ant’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, cu-
rator, conservator, or other person’’ each place it ap-
pears and inserting ‘‘fiduciary’’; and