II 
108TH CONGRESS 
2D SESSION 
H. R. 4658 
IN THE SENATE OF THE UNITED STATES 
OCTOBER 7, 2004 
Received 
AN ACT 
To amend the Servicemembers Civil Relief Act to make cer-
tain 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.
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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
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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
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(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.
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‘‘(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 or-
ders— 
‘‘(i) for a change of permanent sta-
tion— 
‘‘(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.—
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‘‘(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,
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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’’.
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Subtitle B—Other Matters 
SEC. 211. REQUIREMENT FOR EMPLOYERS TO PROVIDE NO-
TICE 
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: 
‘‘§ 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 em-
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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
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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.
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(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-
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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
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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—
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‘‘(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
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(3) in subsection (d), by striking ‘‘guardian, cu-
rator, 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 ‘‘bene-
ficiary,’’ 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 Sec-
retary,’’. 
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: 
‘‘§ 5507. Inquiry, investigations, and qualification of 
fiduciaries 
‘‘(a) Any certification of a person for payment of ben-
efits 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 Sec-
retary of the fitness of that person to serve as fidu-
ciary for that beneficiary, such inquiry or investiga-
tion—
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‘‘(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 ap-
pointment; 
‘‘(2) adequate evidence that certification of that 
person as fiduciary for that beneficiary is in the in-
terest of such beneficiary (as determined by the Sec-
retary under regulations); and 
‘‘(3) the furnishing of any bond that may be re-
quired 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 con-
victed 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 Sec-
retary 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 cir-
cumstances.
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‘‘(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 car-
ried 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 step-
parent) of a beneficiary who is a minor; 
‘‘(B) the spouse or parent of an incompetent 
beneficiary; 
‘‘(C) a person who has been appointed a fidu-
ciary of the beneficiary by a court of competent ju-
risdiction; 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.
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‘‘(d) TEMPORARY FIDUCIARIES.—When in the opin-
ion of the Secretary, a temporary fiduciary is needed in 
order to protect the assets of the beneficiary while a deter-
mination 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 ob-
taining a court order for appointment of a guardian, con-
servator, 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: 
‘‘§ 6106. Misuse of benefits by fiduciaries 
‘‘(a) FEE FORFEITURE IN CASE OF BENEFIT MIS-
USE BY FIDUCIARIES.—A fiduciary may not collect a fee 
from a beneficiary for any month with respect to which
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the Secretary or a court of competent jurisdiction has de-
termined that the fiduciary misused all or part of the indi-
vidual’s benefit, and any amount so collected by the fidu-
ciary as a fee for such month shall be treated as a misused 
part of the individual’s benefit. 
‘‘(b) LIABILITY OF FIDUCIARIES FOR MISUSED BEN-
EFITS.—(1) If the Secretary or a court of competent juris-
diction 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 over-
payment 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 para-
graph (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
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the total benefit amount misused by the fiduciary with re-
spect 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. Re-
tention by a fiduciary of an amount of a benefit payment 
as a fiduciary fee or commission, or as attorney’s fees (in-
cluding 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 determina-
tion by the Secretary that a fiduciary has misused benefits 
is a decision of the Secretary for purposes of section 
511(a) of this title. 
‘‘§ 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
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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 mis-
used. 
‘‘(2) There shall be considered to have been a neg-
ligent 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 neg-
ligence 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 ben-
efit 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 dur-
ing a period when misuse occurs, serves 10 or more 
individuals who are beneficiaries under this title.
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‘‘(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 Sec-
retary 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 ACCOUNT-
INGS.—(1) Chapter 55 of title 38, United States Code, 
as amended by section 302(a), is further amended by add-
ing at the end the following new sections: 
‘‘§ 5508. Periodic onsite reviews of institutional fidu-
ciaries 
‘‘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 bene-
fits 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)
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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. 
‘‘§ 5509. Authority to redirect delivery of benefit pay-
ments when a fiduciary fails to provide 
required accounting 
‘‘(a) REQUIRED REPORTS AND ACCOUNTINGS.—The 
Secretary may require a fiduciary to file a report or ac-
counting pursuant to regulations prescribed by the Sec-
retary. 
‘‘(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 Sec-
retary may, after furnishing notice to such fiduciary and 
the beneficiary entitled to such payment of benefits, re-
quire 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 sec-
tion 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.’’.
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(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: 
‘‘§ 6108. Civil monetary penalties 
‘‘(a) PENALTY FOR CONVERSION.—Any person (in-
cluding an organization, agency, or other entity) who, hav-
ing 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 ben-
efit 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 pen-
alty that may be prescribed by law, a civil monetary pen-
alty 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 sub-
section (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 dam-
ages sustained by the United States resulting from the 
conversion, of not more than twice the amount of any pay-
ments so converted.
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‘‘(c) COSTS OF RECOVERY.—From amounts collected 
under this section, the amount necessary to recoup the De-
partment’s costs of such collection shall be credited to ap-
propriations currently available for the same purpose as 
the appropriation that incurred those costs, to remain 
available until expended. 
‘‘§ 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 or-
ders of restitution under subsection (a). In so applying 
those sections, the Department shall be considered the vic-
tim. 
‘‘(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 ex-
tent and in the amounts provided in advance in appropria-
tions Acts, shall be available to defray expenses incurred
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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 pre-
viously reissued the misused benefits, in which case the 
amounts shall be treated in the same manner as overpay-
ments 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 sec-
tion 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: 
‘‘§ 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 Re-
port information concerning fiduciaries who have been ap-
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pointed to receive payments for beneficiaries of the De-
partment. As part of such information, the Secretary shall 
separately set forth the following: 
‘‘(1) The number of beneficiaries in each cat-
egory (veteran, surviving spouse, child, adult dis-
abled child, or parent). 
‘‘(2) The types of benefit being paid (compensa-
tion, pension, dependency and indemnity compensa-
tion, death pension or benefits payable to a disabled 
child under chapter 18 of this title). 
‘‘(3) The total annual amounts and average an-
nual 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 fi-
duciary, institutional fiduciary, custodian in fact, 
and supervised direct payment). 
‘‘(5) The number of cases in which the fidu-
ciary 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 mis-
use of benefits, including the number and dollar 
amount of any civil or criminal penalties imposed.
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‘‘(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 THRESH-
OLDS. 
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 ef-
fect 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.
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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 med-
ical waste management activities in the health-care facili-
ties 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 geo-
graphic service area of the Department to manage 
and dispose of medical waste, including general med-
ical waste and regulated medical waste, with a de-
scription of the primary methods used in those pro-
grams 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 Commit-
tees on Veterans’ Affairs of the Senate and House of Rep-
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resentatives a report on medical waste management activi-
ties 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 sub-
section. 
(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 identi-
fication of which of those methods are more desir-
able 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.
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SEC. 402. TECHNICAL AMENDMENTS TO EDUCATION PRO-
GRAM PROVISIONS. 
(a) INAPPLICABILITY OF WAGE REQUIREMENTS FOR 
ON-JOB TRAINING PROGRAMS LEADING TO SELF-EM-
PLOYMENT.—(1) Section 3677(b) is amended by adding 
at the end the following new paragraph: 
‘‘(3) Notwithstanding paragraph (1)(A) and sub-
section (c)(8), no wages shall be required to be paid an 
eligible person or veteran by a training establishment de-
scribed 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 para-
graph (2) and inserting ‘‘For the period beginning on Oc-
tober 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 enact-
ment of section 301 of the Veterans Benefits Act of 2003 
(Public Law 108–183; 117 Stat. 2658). 
Passed the House of Representatives October 7 (leg-
islative day, October 6), 2004. 
Attest: 
JEFF TRANDAHL, 
Clerk.