‘‘(2) The officials described in this paragraph are the 
following: 
‘‘(A) The Attorney General. 
‘‘(B) Each head of a Federal department or 
agency that pays to a fiduciary or other person bene-
fits under any law administered by such department 
of agency for the use and benefit of a minor, incom-
petent, or other beneficiary. 
‘‘(f) BOND.—In determining whether a proposed fidu-
ciary is required to furnish a bond under subsection (a)(4), 
the Secretary shall consider— 
‘‘(1) the existence of any familial or other per-
sonal relationship between the proposed fiduciary and 
the beneficiary; and 
‘‘(2) the care the proposed fiduciary has taken to 
protect the interests of the beneficiary. 
‘‘(g) LIST OF FIDUCIARIES.—Each regional office of 
the Veterans Benefits Administration shall maintain a list 
of the following: 
‘‘(1) The name and contact information of each 
fiduciary, including address, telephone number, and 
email address. 
‘‘(2) With respect to each fiduciary described in 
paragraph (1)— 
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‘‘(A) the date of the most recent background 
check and credit check performed by the Sec-
retary under this section; 
‘‘(B) the date that any bond was paid 
under this section; 
‘‘(C) the name, address, and telephone num-
ber of each beneficiary the fiduciary acts on be-
half of; and 
‘‘(D) the amount that the fiduciary controls 
with respect to each beneficiary described in sub-
paragraph (C).’’. 
(e) ANNUAL RECEIPT OF PAYMENTS.— 
(1) IN
GENERAL.—Section 5509 of title 38, 
United States Code, is amended— 
(A) in subsection (a)—— 
(i) by striking ‘‘may require a fidu-
ciary to file a’’ and inserting ‘‘shall require 
a fiduciary to file an annual’’; and 
(ii) by adding at the end the following 
new sentence: ‘‘The Secretary shall transmit 
such annual report or accounting to the 
beneficiary and any legal guardian of such 
beneficiary.’’; 
(B) by adding at the end the following new 
subsections: 
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‘‘(c) MATTERS INCLUDED.—Except as provided by 
subsection (f), an annual report or accounting under sub-
section (a) shall include the following: 
‘‘(1) For each beneficiary that a fiduciary acts 
on behalf of— 
‘‘(A) the amount of the benefits of the bene-
ficiary provided under any law administered by 
the Secretary accrued during the year, the 
amount spent, and the amount remaining; and 
‘‘(B) if the fiduciary serves the beneficiary 
with respect to benefits not administered by the 
Secretary, an accounting of all sources of benefits 
or other income the fiduciary oversees for the 
beneficiary. 
‘‘(2) A list of events that occurred during the 
year covered by the report that could affect the ability 
of the fiduciary to act on behalf of the beneficiary, in-
cluding— 
‘‘(A) the fiduciary being convicted of any 
crime; 
‘‘(B) the fiduciary declaring bankruptcy; 
and 
‘‘(C) any judgments entered against the fi-
duciary. 
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‘‘(d) RANDOM AUDITS.—The Secretary shall annually 
conduct random audits of fiduciaries who receive a commis-
sion pursuant to subsection 5502A(a)(1) of this title. 
‘‘(e) STATUS OF FIDUCIARY.—If a fiduciary includes 
in the annual report events described in subsection (c)(2), 
the Secretary may take appropriate action to adjust the sta-
tus of the fiduciary as the Secretary determines appro-
priate, including by revoking the fiduciary status of the fi-
duciary. 
‘‘(f) CAREGIVERS
AND
CERTAIN
OTHER
FIDU-
CIARIES.—(1)(A) In carrying out this section, the Secretary 
shall ensure that a caregiver fiduciary is required only to 
file an annual report or accounting under subsection (a) 
with respect to the amount of the benefits of the beneficiary 
provided under any law administered by the Secretary— 
‘‘(i) spent on— 
‘‘(I) food and housing for the beneficiary; 
and 
‘‘(II) clothing, health-related expenses, recre-
ation, and other personal items for the bene-
ficiary; and 
‘‘(ii) saved for the beneficiary. 
‘‘(B) The Secretary shall coordinate with the Under 
Secretary for Benefits and the Under Secretary for Health 
to— 
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‘‘(i) minimize the frequency with which employ-
ees of the Department visit the home of a caregiver fi-
duciary and beneficiary; and 
‘‘(ii) limit the extent of supervision by such 
Under Secretaries with respect to such a fiduciary 
and beneficiary. 
‘‘(C) In this paragraph, the term ‘caregiver fiduciary’ 
means a fiduciary who— 
‘‘(i) in addition to acting as a fiduciary for a 
beneficiary, is approved by the Secretary to be a pro-
vider of personal care services for the beneficiary 
under paragraph (3)(A)(i) of section 1720G(a) of this 
title; 
‘‘(ii) in carrying out such care services to such 
beneficiary, has undergone not less than four home 
visits under paragraph (9)(A) of such section; and 
‘‘(iii) has not been required by the Secretary to 
take corrective action pursuant to paragraph (9)(C) 
of such section. 
‘‘(2) In carrying out this section, the Secretary may 
adjust the matters required under an annual report or ac-
counting under subsection (a) with respect to a fiduciary 
whom the Secretary determines to have effectively protected 
the interests of the beneficiary over a sustained period.’’; 
and 
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(C) by striking the section heading and in-
serting the following: ‘‘Annual reports and 
accountings of fiduciaries’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 55 of title 38, 
United States Code, is amended by striking the item 
relating to section 5509 and inserting the following 
new item: 
‘‘5509. Annual reports and accountings of fiduciaries.’’. 
(f) REPAYMENT
OF MISUSED BENEFITS.—Section 
6107(a)(2)(C) of title 38, United States Code, is amended 
by inserting before the period the following: ‘‘, including 
by the Secretary not acting in accordance with section 5507 
of this title’’. 
(g) ANNUAL REPORTS.—Section 5510 of title 38, 
United States Code, is amended by striking ‘‘The Secretary 
shall include in the Annual Benefits Report of the Veterans 
Benefits Administration or the Secretary’s Annual Per-
formance and Accountability Report’’ and inserting ‘‘Not 
later than July 1 of each year, the Secretary shall submit 
to the Committees on Veterans’ Affairs of the House of Rep-
resentatives and the Senate a separate report containing’’. 
(h) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Veterans Af-
fairs shall submit to the Committee on Veterans’ Affairs of 
the Senate and the Committee on Veterans’ Affairs of the 
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House of Representatives a comprehensive report on the im-
plementation of the amendments made by this Act, includ-
ing— 
(1) detailed information on the establishment of 
new policies and procedures pursuant to such amend-
ments and training provided on such policies and 
procedures; and 
(2) a discussion of whether the Secretary should 
provide fiduciaries with standardized financial soft-
ware to simplify reporting requirements. 
SEC. 5. LIMITATION ON AWARDS AND BONUSES TO EM-
PLOYEES OF DEPARTMENT OF VETERANS AF-
FAIRS. 
For each of fiscal years 2014 through 2018, the Sec-
retary of Veterans Affairs may not pay more than 
$345,000,000 in awards or bonuses under chapter 45 or 53 
of title 5, United States Code, or any other awards or bo-
nuses authorized under such title. 
Amend the title so as to read: ‘‘A bill to amend title 
38, United States Code, to require the Secretary of Vet-
erans Affairs to include a notice of disagreement form in 
any notice of decision issued for the denial of a benefit 
sought, to improve the supervision of fiduciaries of vet-
erans under the laws administered by the Secretary of 
Veterans Affairs, and for other purposes.’’. 
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Union Calendar No. 95 
113TH CONGRESS 
1ST SESSION 
H. R. 1405 
[Report No. 113–130] 
A BILL 
To amend title 38, United States Code, to require 
the Secretary of Veterans Affairs to include an 
appeals form in any notice of decision issued for 
the denial of a benefit sought. 
JUNE 25, 2013 
Reported with amendments, committed to the Committee 
of the Whole House on the State of the Union, and or-
dered to be printed 
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