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 DIAZ- 
BALART 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. TAY-
LOR
of Mississippi, Mr. HULSHOF, Ms. HART, Mr. SHAYS, Mr. 
LANGEVIN, Mr. WAMP, Mr. SALAZAR, Mr. PORTER, Mr. FRANKS of Ari-
zona, 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 
VerDate Aug 31 2005 
00:11 Jun 02, 2006
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H5520.IH
H5520
hmoore on PROD1PC68 with HMBILLS
Claims to reimburse injured persons for injuries suffered 
as a result of the unauthorized use, disclosure, or dis-
semination of identifying information stolen from the 
Department of Veterans Affairs, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Veterans Identity Pro-
tection Act’’, or the ‘‘VIP Act’’. 
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to reimburse injured persons for injuries 
suffered as a result of the unauthorized use, disclo-
sure, or dissemination of identifying information sto-
len from the home of an employee of the Depart-
ment of Veterans Affairs on or around May 3, 2006; 
and 
(2) to provide for the expeditious consideration 
and settlement of claims for those injuries. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Office of Veterans Identity Pro-
tection Claims. 
(2) INJURED PERSON.—The term ‘‘injured per-
son’’ means an individual— 
VerDate Aug 31 2005 
00:11 Jun 02, 2006
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5520.IH
H5520
hmoore on PROD1PC68 with HMBILLS
(A) whose name or other personal identi-
fying information was part of the data of the 
Department of Veterans Affairs that was stolen 
from the home of an employee of the Depart-
ment of Veterans Affairs on or around May 3, 
2006; and 
(B) who suffered an injury as a result of 
the unauthorized use, disclosure, or dissemina-
tion of personal identifying information that 
was included in the data described in subpara-
graph (A). 
(3) OFFICE.—The term ‘‘Office’’ means the Of-
fice of Veterans Identity Protection Claims estab-
lished under section 4(a). 
SEC. 4. OFFICE OF VETERANS IDENTITY PROTECTION 
CLAIMS. 
(a) OFFICE ESTABLISHED.—There is established an 
independent office of the executive branch to receive, proc-
ess, and pay claims in accordance with this Act. Such of-
fice shall be known as the Office of Veterans Identity Pro-
tection Claims. 
(b) DIRECTOR.—Not later than 30 days after the en-
actment of this Act, the President shall appoint a director 
of the Office of Veterans Identity Protection Claims. The 
Director shall, on behalf of the United States, investigate, 
VerDate Aug 31 2005 
00:11 Jun 02, 2006
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5520.IH
H5520
hmoore on PROD1PC68 with HMBILLS
consider, ascertain, adjust, determine, grant, deny, or set-
tle any claim for money damages asserted under section 
5(b). 
(c) FUNDING.—The Office— 
(1) shall be funded from funds made available 
to the Director under this Act; 
(2) may reimburse other Federal agencies for 
claims processing support and assistance; 
(3) may appoint and fix the compensation of 
such temporary personnel as may be necessary, with-
out regard to the provisions of title 5, United States 
Code, governing appointments in competitive service; 
and 
(4) upon the request of the Director, may re-
quest that the head of any Federal department or 
agency detail, on a reimbursable basis, any of the 
personnel of that department or agency to the Office 
to assist it in carrying out its duties under this Act. 
SEC. 5. REIMBURSEMENT FOR INJURIES SUFFERED. 
(a) REIMBURSEMENT.—Each injured person shall be 
entitled to receive from the United States— 
(1) reimbursement for any injuries suffered by 
the injured person as a result of the unauthorized 
use, disclosure, or dissemination of personal identi-
VerDate 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
fying information that was included in the data de-
scribed in section 3(2)(A); and 
(2) damages described in subsection (d)(3), as 
determined by the Director. 
(b) SUBMISSION OF CLAIMS.—Not later than 2 years 
after the date on which regulations are first promulgated 
under subsection (f), an injured person may submit to the 
Director a written claim for one or more injuries suffered 
by the injured person in accordance with such require-
ments as the Director determines to be appropriate. 
(c) INVESTIGATION OF CLAIMS.— 
(1) APPLICABILITY OF STATE LAW.—Except as 
otherwise provided in this Act, the laws of the State 
in which the injured person resides shall apply to the 
calculation of damages under subsection (d)(3). 
(2) EXTENT
OF
DAMAGES.—Any payment 
under this Act— 
(A) shall be limited to actual compensatory 
damages measured by injuries suffered and in-
terest before settlement or payment of a claim; 
and 
(B) shall not include punitive damages. 
(d) PAYMENT OF CLAIMS.— 
(1) 
DETERMINATION
AND
PAYMENT
OF 
AMOUNT.— 
VerDate Aug 31 2005 
00:11 Jun 02, 2006
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5520.IH
H5520
hmoore on PROD1PC68 with HMBILLS
(A) IN
GENERAL.—Not later than 180 
days after the date on which a claim is sub-
mitted under this Act, the Director shall deter-
mine and fix the amount, if any, to be paid for 
the claim. 
(B) PARAMETERS OF DETERMINATION.— 
In determining and settling a claim under this 
Act, the Director shall determine only— 
(i) whether the claimant is an injured 
person; 
(ii) whether the injury that is the sub-
ject of the claim resulted from the unau-
thorized use, disclosure, or dissemination 
of personal identifying information that 
was included in the data described in sec-
tion 3(2)(A); 
(iii) the amount, if any, to be allowed 
and paid to the injured person under this 
Act. 
(C) 
OTHER
PAYMENTS
OR
SETTLE-
MENTS.—In determining the amount of, and 
paying, a claim under this Act, to prevent re-
covery by a claimant in excess of actual com-
pensatory damages, the Director shall reduce 
the amount to be paid for the claim by an 
VerDate Aug 31 2005 
00:11 Jun 02, 2006
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5520.IH
H5520
hmoore on PROD1PC68 with HMBILLS
amount that is equal to the total of any pay-
ments or settlements of any nature that were 
paid, or will be paid, to the injured person with 
respect to the claim. 
(2) PARTIAL PAYMENT.— 
(A) IN
GENERAL.—At the request of a 
claimant, the Director may make one or more 
advance or partial payments before the final 
settlement of a claim, including final settlement 
on any portion or aspect of a claim that is de-
termined to be severable. 
(B) JUDICIAL DECISION.—If a claimant re-
ceives a partial payment on a claim under this 
Act, but further payment on the claim is subse-
quently denied by the Director, the claimant 
may— 
(i) seek judicial review under sub-
section (i); and 
(ii) keep any partial payment that the 
claimant received, unless the Director de-
termines that the claimant— 
(I) was not eligible to receive the 
reimbursement; or 
(II) fraudulently procured the re-
imbursement. 
VerDate Aug 31 2005 
00:11 Jun 02, 2006
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5520.IH
H5520
hmoore on PROD1PC68 with HMBILLS
(3) ALLOWABLE
DAMAGES.—A claim that is 
paid under this Act may include otherwise uncom-
pensated damages for loss of property, business loss, 
or financial loss resulting from the unauthorized use, 
disclosure, or dissemination of personal identifying 
information that was included in the data described 
in section 3(2)(A). 
(e) ACCEPTANCE OF AWARD.—The acceptance by a 
claimant of any payment under this Act, except an ad-
vance or partial payment made under subsection (d)(2), 
shall— 
(1) be final and conclusive on the claimant, 
with respect to all claims arising out of or relating 
to the same subject matter; 
(2) constitute a complete release of all claims 
against the United States (including any agency or 
employee of the United States) under chapter 171 of 
title 28, United States Code (commonly known as 
the ‘‘Federal Tort Claims Act’’), or any other Fed-
eral or State law, arising out of or relating to the 
same subject matter; and 
(3) shall include a certification by the claimant, 
made under penalty of perjury and subject to the 
provisions of section 1001 of title 18, United States 
Code, that such claim is true and correct. 
VerDate Aug 31 2005 
00:11 Jun 02, 2006
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5520.IH
H5520
hmoore on PROD1PC68 with HMBILLS
(f) REGULATIONS AND PUBLIC INFORMATION.— 
(1) REGULATIONS.—Notwithstanding any other 
provision of law, not later than 45 days after the 
date of the enactment of this Act, the Director shall 
promulgate and publish in the Federal Register in-
terim final regulations for the processing and pay-
ment of claims under this Act. 
(2) PUBLIC INFORMATION.— 
(A) IN GENERAL.—At the time at which 
the Director promulgates regulations under 
paragraph (1), the Director shall publish, in 
newspapers of general circulation in the each of 
the several States and the District of Columbia, 
a clear, concise, and easily understandable ex-
planation, in English and Spanish, of— 
(i) the rights conferred under this 
Act; and 
(ii) the procedural and other require-
ments of the regulations promulgated 
under paragraph (1). 
(B) DISSEMINATION
THROUGH
OTHER 
MEDIA.—The Director shall disseminate the ex-
planation published under subparagraph (A) 
through brochures, pamphlets, radio, television, 
VerDate Aug 31 2005 
00:11 Jun 02, 2006
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5520.IH
H5520
hmoore on PROD1PC68 with HMBILLS
and other media that the Director determines 
are likely to reach prospective claimants. 
(g) CONSULTATION.—In administering this Act, the 
Director shall consult with the Attorney General, the Sec-
retary of Veterans Affairs, the Secretary of the Defense, 
the Secretary of Commerce, other Federal agencies, and 
State and local authorities, as determined to be necessary 
by the Director to— 
(1) ensure the efficient administration of the 
claims process; and 
(2) provide for local concerns. 
(h) ELECTION OF REMEDY.— 
(1) IN GENERAL.—An injured person may elect 
to seek reimbursement from the United States for 
one or more injuries resulting from the unauthorized 
use, disclosure, or dissemination of personal identi-
fying information that was included in the data de-
scribed in section 3(2)(A) by— 
(A) submitting a claim under this Act; 
(B) filing a claim or bringing a civil action 
under chapter 171 of title 28, United States 
Code; or 
(C) bringing an authorized civil action 
under any other provision of law. 
VerDate Aug 31 2005 
00:11 Jun 02, 2006
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5520.IH
H5520
hmoore on PROD1PC68 with HMBILLS
(2) EFFECT OF ELECTION.—An election by an 
injured person to seek reimbursement in any manner 
described in paragraph (1) shall be final and conclu-
sive on the claimant with respect to all injuries re-
sulting from the unauthorized use, disclosure, or dis-
semination of personal identifying information that 
was included in the data described in section 3(2)(A) 
that are suffered by the claimant. 
(3) ARBITRATION.— 
(A) IN GENERAL.—Not later than 45 days 
after the date of the enactment of this Act, the 
Director shall establish by regulation proce-
dures under which a dispute regarding a claim 
submitted under this Act may be settled by ar-
bitration. 
(B) ARBITRATION AS REMEDY.—On estab-
lishment of arbitration procedures under sub-
paragraph (A), an injured person that submits 
a disputed claim under this Act may elect to 
settle the claim through arbitration. 
(C) BINDING EFFECT.—An election by an 
injured person to settle a claim through arbitra-
tion under this paragraph shall— 
(i) be binding; and 
VerDate Aug 31 2005 
00:11 Jun 02, 2006
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5520.IH
H5520
hmoore on PROD1PC68 with HMBILLS