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’ Benefits Act 
of 2011’’. 
SEC. 2. ASSESSMENT OF CLAIMS-PROCESSING SKILLS 
PILOT PROGRAM. 
(a) PILOT PROGRAM.—Commencing not later than 
180 days after the date of the enactment of this Act, in 
addition to providing employee certification under section 
7732A of title 38, United States Code, the Secretary of 
Veterans Affairs shall carry out a pilot program to assess 
skills and provide training described under subsection (b). 
(b) BIENNIAL SKILLS ASSESSMENT AND INDIVID-
UALIZED TRAINING.— 
(1) IN GENERAL.—The Secretary shall— 
(A) biennially assess the skills of appro-
priate employees and managers of the Veterans 
Benefits Administration who are responsible for 
processing claims for compensation and pension 
benefits under the laws administered by the 
Secretary, including by requiring such employ-
ees and managers to take the examination pro-
vided under section 7732A(a)(1) of title 38, 
United States Code; and
(B) on the basis of the results of such as-
sessment and examination, and on any relevant 
regional office quality review, develop and im-
plement an individualized training plan related 
to such skills for each such employee and man-
ager. 
(2) REMEDIATION.— 
(A) REMEDIATION
PROVIDED.—In pro-
viding training under paragraph (1)(B), if any 
employee or manager receives a less than satis-
factory result on any portion of an assessment 
under paragraph (1)(A), the Secretary shall 
provide such employee or manager with remedi-
ation of any deficiency in the skills related to 
such portion of the assessment and, within a 
reasonable period following the remediation, 
shall require the employee or manager to take 
the examination again. 
(B) PERSONNEL ACTIONS.—In accordance 
with titles 5 and 38, United States Code, the 
Secretary shall take appropriate personnel ac-
tions with respect to any employee or manager 
who, after being given two opportunities for re-
mediation under subparagraph (A), does not re-
ceive a satisfactory result on an assessment 
under paragraph (1)(A). 
(c) LOCATIONS AND DURATION.—The Secretary shall 
carry out the pilot program under this section at five re-
gional offices of the Veterans Benefits Administration dur-
ing the four-year period beginning on the date of the com-
mencement of the pilot program. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section a 
total of $5,000,000 for fiscal years 2012 through 2016. 
(e) REPORTS.—Not later than November 1 of each 
year in which the pilot program under this section is car-
ried out, the Secretary shall submit to the Committee on 
Veterans’ Affairs of the House of Representatives and the 
Committee on Veterans’ Affairs of the Senate a report on 
any assessments and training conducted under this section 
during the previous year. Each such report shall include— 
(1) a summary of— 
(A) the results of the assessments under 
subsection (b)(1)(A); 
(B) remediation provided under subsection 
(b)(2)(A); and 
(C) personnel actions taken under sub-
section (b)(2)(B); and
(2) any changes made to the training program 
under subsection (b)(1)(B) based on the results of 
such assessments and remediation and the examina-
tions provided under section 7732A(a)(1) of title 38, 
United States Code. 
SEC. 3. EXCLUSION OF CERTAIN REIMBURSEMENTS OF EX-
PENSES FROM DETERMINATION OF ANNUAL 
INCOME WITH RESPECT TO PENSIONS FOR 
VETERANS AND SURVIVING SPOUSES AND 
CHILDREN OF VETERANS. 
(a) IN GENERAL.—Paragraph (5) of section 1503(a) 
of title 38, United States Code, is amended to read as 
follows: 
‘‘(5) payments regarding— 
‘‘(A) reimbursements of any kind (includ-
ing insurance settlement payments) for— 
‘‘(i) expenses related to the repay-
ment, replacement, or repair of equipment, 
vehicles, items, money, or property result-
ing from— 
‘‘(I) any accident (as defined in 
regulations which the Secretary shall 
prescribe), but the amount excluded 
under this subclause shall not exceed 
the greater of the fair market value or
reasonable replacement value of the 
equipment or vehicle involved at the 
time immediately preceding the acci-
dent; 
‘‘(II) any theft or loss (as defined 
in regulations which the Secretary 
shall prescribe), but the amount ex-
cluded under this subclause shall not 
exceed the greater of the fair market 
value or reasonable replacement value 
of the item or the amount of the 
money (including legal tender of the 
United States or of a foreign country) 
involved at the time immediately pre-
ceding the theft or loss; or 
‘‘(III) any casualty loss (as de-
fined in regulations which the Sec-
retary 
shall 
prescribe), 
but 
the 
amount excluded under this subclause 
shall not exceed the greater of the fair 
market value or reasonable replace-
ment value of the property involved at 
the time immediately preceding the 
casualty loss; and
‘‘(ii) medical expenses resulting from 
any accident, theft, loss, or casualty loss 
(as defined in regulations which the Sec-
retary shall prescribe), but the amount ex-
cluded under this clause shall not exceed 
the costs of medical care provided to the 
victim of the accident, theft, loss, or cas-
ualty loss; and 
‘‘(B) pain and suffering (including insur-
ance settlement payments and general damages 
awarded by a court) related to an accident, 
theft, loss, or casualty loss, but the amount ex-
cluded under this subparagraph shall not exceed 
an amount determined by the Secretary on a 
case-by-case basis;’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on the date that is one 
year after the date of the enactment of this Act. 
(c) EXTENSION OF AUTHORITY TO OBTAIN CERTAIN 
INFORMATION FROM DEPARTMENT OF TREASURY.—Sec-
tion 5317(g) of title 38, United States Code, is amended 
by striking ‘‘2011’’ and inserting ‘‘2013’’.
SEC. 4. AUTHORIZATION OF USE OF ELECTRONIC COMMU-
NICATION TO PROVIDE NOTICE TO CLAIM-
ANTS FOR BENEFITS UNDER LAWS ADMINIS-
TERED BY THE SECRETARY OF VETERANS AF-
FAIRS. 
(a) IN GENERAL.—Section 5103 of title 38, United 
States Code, is amended— 
(1) in subsection (a)(1)— 
(A) by striking ‘‘Upon receipt of a com-
plete or substantially complete application, the’’ 
and inserting ‘‘The’’; 
(B) by striking ‘‘notify’’ and inserting 
‘‘provide to’’; and 
(C) by inserting ‘‘by the most effective 
means available, including electronic commu-
nication or notification in writing’’ before ‘‘of 
any information’’; and 
(2) in subsection (b), by adding at the end the 
following new paragraphs: 
‘‘(4) Nothing in this section shall require the Sec-
retary to provide notice for a subsequent claim that is filed 
while a previous claim is pending if the notice previously 
provided for such pending claim— 
‘‘(A) provides sufficient notice of the informa-
tion and evidence necessary to substantiate such 
subsequent claim; and
‘‘(B) was sent within one year of the date on 
which the subsequent claim was filed. 
‘‘(5)(A) This section shall not apply to any claim or 
issue where the Secretary may award the maximum ben-
efit in accordance with this title based on the evidence of 
record. 
‘‘(B) For purposes of this paragraph, the term ‘max-
imum benefit’ means the highest evaluation assignable in 
accordance with the evidence of record, as long as such 
evaluation is supported by such evidence of record at the 
time the decision is rendered.’’. 
(b) CONSTRUCTION.—Nothing in the amendments 
made by subsection (a) shall be construed as eliminating 
any requirement with respect to the contents of a notice 
under section 5103 of such title that are required under 
regulations prescribed pursuant to subsection (a)(2) of 
such section as of the date of the enactment of this Act. 
SEC. 5. DUTY TO ASSIST CLAIMANTS IN OBTAINING PRI-
VATE RECORDS. 
(a) IN GENERAL.—Section 5103A(b) of title 38, 
United States Code, is amended to read as follows: 
‘‘(b) 
ASSISTANCE
IN
OBTAINING
PRIVATE 
RECORDS.—(1) As part of the assistance provided under 
subsection (a), the Secretary shall make reasonable efforts 
to obtain relevant private records.
‘‘(2)(A) Whenever the Secretary, after making such 
reasonable efforts, is unable to obtain all of the relevant 
records sought, the Secretary shall notify the claimant 
that the Secretary is unable to obtain records with respect 
to the claim. Such a notification shall— 
‘‘(i) identify the records the Secretary is unable 
to obtain; 
‘‘(ii) briefly explain the efforts that the Sec-
retary made to obtain such records; and 
‘‘(iii) explain that the Secretary will decide the 
claim based on the evidence of record but that this 
section does not prohibit the submission of records 
at a later date if such submission is otherwise al-
lowed. 
‘‘(B) The Secretary shall make not less than two re-
quests to a custodian of a private record in order for an 
effort to obtain relevant private records to be treated as 
reasonable under this section, unless it is made evident 
by the first request that a second request would be futile 
in obtaining such records. 
‘‘(3)(A) This section shall not apply if the evidence 
of record allows for the Secretary to award the maximum 
benefit in accordance with this title based on the evidence 
of record.
‘‘(B) For purposes of this paragraph, the term ‘max-
imum benefit’ means the highest evaluation assignable in 
accordance with the evidence of record, as long as such 
evaluation is supported by such evidence of record at the 
time the decision is rendered. 
‘‘(4) Under regulations prescribed by the Secretary, 
the Secretary— 
‘‘(A) shall encourage claimants to submit rel-
evant private medical records of the claimant to the 
Secretary if such submission does not burden the 
claimant; and 
‘‘(B) in obtaining relevant private records under 
paragraph (1), may require the claimant to author-
ize the Secretary to obtain such records if such au-
thorization is required to comply with Federal, 
State, or local law.’’. 
(b) PUBLIC RECORDS.—Section 5103A(c) of such 
title is amended to read as follows: 
‘‘(c) OBTAINING
RECORDS
FOR
COMPENSATION 
CLAIMS.—(1) In the case of a claim for disability com-
pensation, the assistance provided by the Secretary under 
this section shall include obtaining the following records 
if relevant to the claim: 
‘‘(A) The claimant’s service medical records 
and, if the claimant has furnished the Secretary in-
formation sufficient to locate such records, other rel-
evant records pertaining to the claimant’s active 
military, naval, or air service that are held or main-
tained by a governmental entity. 
‘‘(B) Records of relevant medical treatment or 
examination of the claimant at Department health- 
care facilities or at the expense of the Department, 
if the claimant furnishes information sufficient to lo-
cate those records. 
‘‘(C) Any other relevant records held by any 
Federal department or agency that the claimant ade-
quately identifies and authorizes the Secretary to ob-
tain. 
‘‘(2) Whenever the Secretary attempts to obtain 
records from a Federal department or agency under this 
subsection, the efforts to obtain those records shall con-
tinue until the records are obtained unless it is reasonably 
certain that such records do not exist or that further ef-
forts to obtain those records would be futile.’’. 
SEC. 6. CONDITIONS FOR TREATMENT OF CERTAIN PER-
SONS AS ADJUDICATED MENTALLY INCOM-
PETENT FOR CERTAIN PURPOSES. 
(a) IN GENERAL.—Chapter 55 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 5511. Conditions for treatment of certain persons 
as adjudicated mentally incompetent for 
certain purposes 
‘‘In any case arising out of the administration by the 
Secretary of laws and benefits under this title, a person 
who is mentally incapacitated, deemed mentally incom-
petent, or experiencing an extended loss of consciousness 
shall not be considered adjudicated as a mental defective 
under subsection (d)(4) or (g)(4) of section 922 of title 
18 without the order or finding of a judge, magistrate, 
or other judicial authority of competent jurisdiction that 
such person is a danger to himself or herself or others.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 55 of such title is amended 
by adding at the end the following new item: 
‘‘5511. Conditions for treatment of certain persons as adjudicated mentally in-
competent for certain purposes.’’. 
SEC. 7. REINSTATEMENT OF PENALTIES FOR CHARGING 
VETERANS UNAUTHORIZED FEES. 
(a) IN GENERAL.—Section 5905 of title 38, United 
States Code, is amended to read as follows: 
‘‘§ 5905. Penalty for certain acts 
‘‘Except as provided in section 5904 or 1984 of this 
title, whoever— 
‘‘(1) in connection with a proceeding before the 
Department, 
knowingly 
solicits, 
contracts 
for,
charges, or receives any fee or compensation in con-
nection for— 
‘‘(A) the provision of advice on how to file 
a claim for benefits under the laws adminis-
tered by the Secretary; or 
‘‘(B) the preparation, presentation, or 
prosecution of such a claim before the date on 
which a notice of disagreement is filed in a pro-
ceeding on the claim, 
or attempts to do so; 
‘‘(2) unlawfully withholds from any claimant or 
beneficiary any part of a benefit or claim under the 
laws administered by the Secretary that is allowed 
and due to the claimant or beneficiary, or attempts 
to do so; 
‘‘(3) commits an offense punishable by this 
chapter, or aids, abets, counsels, commands, or pro-
cures the commission of such an act; or 
‘‘(4) causes an act to be done, which if directly 
performed would be punishable by this chapter, 
shall be fined as provided in title 18, or imprisoned for 
not more than one year, or both.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to acts committed 
after the date of the enactment of this Act.
SEC. 8. PERFORMANCE AWARDS IN THE SENIOR EXECU-
TIVE SERVICE. 
For each of fiscal years 2012 through 2016, the Sec-
retary of Veterans Affairs may not pay more than 
$2,000,000 in performance awards under section 5384 of 
title 5, United States Code. 
SEC. 9. BUDGETARY EFFECTS OF THIS ACT. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
vided that such statement has been submitted prior to the 
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 
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 Adminis-
tration, and for other purposes.