IIB 
112TH CONGRESS 
2D SESSION 
H. R. 5948 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 20, 2012 
Received; read twice and referred to the Committee on Veterans’ Affairs 
AN ACT 
To amend title 38, United States Code, to improve the 
supervision of fiduciaries of veterans under the laws ad-
ministered by the Secretary of Veterans Affairs, to estab-
lish a Place of Remembrance at Arlington National Cem-
etery, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Veterans Fiduciary Reform and Honoring Noble Service 
Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Improvement of fiduciaries for veterans. 
Sec. 3. Establishment of Place of Remembrance at Arlington National Ceme-
tery. 
Sec. 4. Furnishing caskets and urns for deceased veterans with no known next 
of kin. 
Sec. 5. Improved communication between Department of Veterans Affairs and 
medical examiners and funeral directors. 
Sec. 6. Report on compliance of Department of Veterans Affairs with industry 
standards for caskets and urns. 
Sec. 7. Exclusion of persons convicted of committing certain sex offenses from 
interment or memorialization in national cemeteries, Arlington 
National Cemetery, and certain State veterans’ cemeteries and 
from receiving certain funeral honors. 
Sec. 8. Veterans freedom of conscience protection. 
Sec. 9. Provision of access to case-tracking information. 
Sec. 10. Notification by the Secretary of Veterans Affairs of individuals whose 
sensitive personal information is involved in a data breach. 
Sec. 11. Limitation on bonuses for Department of Veterans Affairs employees 
who violate Federal civil laws or regulations. 
Sec. 12. Limitation on awards and bonuses to employees of the Department of 
Veterans Affairs. 
SEC. 2. IMPROVEMENT OF FIDUCIARIES FOR VETERANS. 
(a) APPOINTMENT AND SUPERVISION.— 
(1) Section 5502 of title 38, United States 
Code, is amended to read as follows: 
‘‘§ 5502. Appointment of fiduciaries 
‘‘(a) APPOINTMENT.—(1) Where it appears to the 
Secretary that the interest of the beneficiary would be 
served thereby, payment of benefits under any law admin-
istered by the Secretary may be made directly to the bene-
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ficiary or to a relative or some other fiduciary for the use 
and benefit of the beneficiary, regardless of any legal dis-
ability on the part of the beneficiary. 
‘‘(2) When in the opinion of the Secretary, a tem-
porary fiduciary is needed in order to protect the benefits 
provided to the beneficiary under any law administered by 
the Secretary while a determination of incompetency is 
being made or appealed or a fiduciary is appealing a deter-
mination 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 obtaining a court order for appoint-
ment of a guardian, conservator, or other fiduciary under 
the authority provided in section 5502(b) of this title. 
‘‘(b) APPEALS.—(1) If the Secretary determines a 
beneficiary to be mentally incompetent for purposes of ap-
pointing a fiduciary under this chapter, the Secretary shall 
provide such beneficiary with a written statement detailing 
the reasons for such determination. 
‘‘(2) A beneficiary whom the Secretary has deter-
mined to be mentally incompetent for purposes of appoint-
ing a fiduciary under this chapter may appeal such deter-
mination. 
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‘‘(c) MODIFICATION.—(1) A beneficiary for whom the 
Secretary appoints a fiduciary under this chapter may, at 
any time, request the Secretary to— 
‘‘(A) remove the fiduciary so appointed; and 
‘‘(B) have a new fiduciary appointed. 
‘‘(2) The Secretary shall comply with a request under 
paragraph (1) unless the Secretary determines that the 
request is not made in good faith. 
‘‘(3) The Secretary shall ensure that any removal or 
new appointment of a fiduciary under paragraph (1) does 
not delay or interrupt the beneficiary’s receipt of benefits 
administered by the Secretary. 
‘‘(d) INDEPENDENCE.—A fiduciary appointed by the 
Secretary shall operate independently of the Department 
to determine the actions that are in the interest of the 
beneficiary. 
‘‘(e) PREDESIGNATION.—A veteran may predesignate 
a fiduciary by— 
‘‘(1) submitting written notice to the Secretary 
of the predesignated fiduciary; or 
‘‘(2) submitting a form provided by the Sec-
retary for such purpose. 
‘‘(f) APPOINTMENT OF NON-PREDESIGNATED FIDU-
CIARY.—If a beneficiary designates an individual to serve 
as a fiduciary under subsection (e) and the Secretary ap-
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points an individual not so designated as the fiduciary for 
such beneficiary, the Secretary shall notify such bene-
ficiary of— 
‘‘(1) the reason why such designated individual 
was not appointed; and 
‘‘(2) the ability of the beneficiary to modify the 
appointed fiduciary under subsection (c). 
‘‘(g) PRIORITY OF APPOINTMENT.—In appointing a 
fiduciary under this chapter, if a beneficiary does not des-
ignate a fiduciary pursuant to subsection (e), to the extent 
possible the Secretary shall appoint a person who is— 
‘‘(1) a relative of the beneficiary; 
‘‘(2) appointed as guardian of the beneficiary 
by a court of competent jurisdiction; or 
‘‘(3) authorized to act on behalf of the bene-
ficiary under a durable power of attorney.’’. 
(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 5502 and inserting the following: 
‘‘5502. Appointment of fiduciaries.’’. 
(b) SUPERVISION.— 
(1) IN
GENERAL.—Chapter 55 of title 38, 
United States Code, is amended by inserting after 
section 5502, as amended by subsection (a)(1), the 
following new section: 
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‘‘§ 5502A. Supervision of fiduciaries 
‘‘(a) COMMISSION.—(1)(A) In a case in which the 
Secretary determines that a commission is necessary in 
order to obtain the services of a fiduciary in the best inter-
ests of a beneficiary, the Secretary may authorize a fidu-
ciary appointed by the Secretary to obtain from the 
monthly benefits provided to the beneficiary a reasonable 
commission for fiduciary services rendered, but the com-
mission for any month may not exceed the lesser of the 
following amounts: 
‘‘(i) The amount that equals three percent 
of the monthly monetary benefits under laws 
administered by the Secretary paid on behalf of 
the beneficiary to the fiduciary. 
‘‘(ii) $35. 
‘‘(B) A commission paid under this paragraph may 
not be derived from any award to a beneficiary regarding 
back pay or retroactive benefits payments. 
‘‘(C) A commission may not be authorized for a fidu-
ciary who receives any other form of remuneration or pay-
ment in connection with rendering fiduciary services for 
benefits under this title on behalf of the beneficiary. 
‘‘(D) In accordance with section 6106 of this title, 
a commission may not be paid to a fiduciary if the Sec-
retary determines that the fiduciary misused any benefit 
payments of a beneficiary. 
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‘‘(E) If the Secretary determines that the fiduciary 
has misused any benefit or payments of a beneficiary, the 
Secretary may revoke the fiduciary status of the fiduciary. 
‘‘(2) Where, in the opinion of the Secretary, any fidu-
ciary receiving funds on behalf of a Department bene-
ficiary is acting in such a number of cases as to make 
it impracticable to conserve properly the estates or to su-
pervise the persons of the beneficiaries, the Secretary may 
refuse to make future payments in such cases as the Sec-
retary may deem proper. 
‘‘(b) COURT.—Whenever it appears that any fidu-
ciary, in the opinion of the Secretary, is not properly exe-
cuting or has not properly executed the duties of the trust 
of such fiduciary or has collected or paid, or is attempting 
to collect or pay, fees, commissions, or allowances that are 
inequitable or in excess of those allowed by law for the 
duties performed or expenses incurred, or has failed to 
make such payments as may be necessary for the benefit 
of the ward or the dependents of the ward, then the Sec-
retary may appear, by the Secretary’s authorized attorney, 
in the court which has appointed such fiduciary, or in any 
court having original, concurrent, or appellate jurisdiction 
over said cause, and make proper presentation of such 
matters. The Secretary, in the Secretary’s discretion, may 
suspend payments to any such fiduciary who shall neglect 
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or refuse, after reasonable notice, to render an account 
to the Secretary from time to time showing the application 
of such payments for the benefit of such incompetent or 
minor beneficiary, or who shall neglect or refuse to admin-
ister the estate according to law. The Secretary may re-
quire the fiduciary, as part of such account, to disclose 
any additional financial information concerning the bene-
ficiary (except for information that is not available to the 
fiduciary). The Secretary may appear or intervene by the 
Secretary’s duly authorized attorney in any court as an 
interested party in any litigation instituted by the Sec-
retary or otherwise, directly affecting money paid to such 
fiduciary under this section. 
‘‘(c) PAYMENT OF CERTAIN EXPENSES.—Authority 
is hereby granted for the payment of any court or other 
expenses incident to any investigation or court proceeding 
for the appointment of any fiduciary or other person for 
the purpose of payment of benefits payable under laws ad-
ministered by the Secretary or the removal of such fidu-
ciary and appointment of another, and of expenses in con-
nection with the administration of such benefits by such 
fiduciaries, or in connection with any other court pro-
ceeding hereby authorized, when such payment is author-
ized by the Secretary. 
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‘‘(d) TEMPORARY PAYMENT OF BENEFITS.—All or 
any part of any benefits the payment of which is sus-
pended or withheld under this section may, in the discre-
tion of the Secretary, be paid temporarily to the person 
having custody and control of the incompetent or minor 
beneficiary, to be used solely for the benefit of such bene-
ficiary, or, in the case of an incompetent veteran, may be 
apportioned to the dependent or dependents, if any, of 
such veteran. Any part not so paid and any funds of a 
mentally incompetent or insane veteran not paid to the 
chief officer of the institution in which such veteran is a 
patient nor apportioned to the veteran’s dependent or de-
pendents may be ordered held in the Treasury to the credit 
of such beneficiary. All funds so held shall be disbursed 
under the order and in the discretion of the Secretary for 
the benefit of such beneficiary or the beneficiary’s depend-
ents. Any balance remaining in such fund to the credit 
of any beneficiary may be paid to the beneficiary if the 
beneficiary recovers and is found competent, or if a minor, 
attains majority, or otherwise to the beneficiary’s fidu-
ciary, or, in the event of the beneficiary’s death, to the 
beneficiary’s personal representative, except as otherwise 
provided by law; however, payment will not be made to 
the beneficiary’s personal representative if, under the law 
of the beneficiary’s last legal residence, the beneficiary’s 
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estate would escheat to the State. In the event of the death 
of a mentally incompetent or insane veteran, all gratuitous 
benefits under laws administered by the Secretary depos-
ited before or after August 7, 1959, in the personal funds 
of patients trust fund on account of such veteran shall 
not be paid to the personal representative of such veteran, 
but shall be paid to the following persons living at the 
time of settlement, and in the order named: The surviving 
spouse, the children (without regard to age or marital sta-
tus) in equal parts, and the dependent parents of such 
veteran, in equal parts. If any balance remains, such bal-
ance shall be deposited to the credit of the applicable cur-
rent appropriation; except that there may be paid only so 
much of such balance as may be necessary to reimburse 
a person (other than a political subdivision of the United 
States) who bore the expenses of last sickness or burial 
of the veteran for such expenses. No payment shall be 
made under the two preceding sentences of this subsection 
unless claim therefor is filed with the Secretary within five 
years after the death of the veteran, except that, if any 
person so entitled under said two sentences is under legal 
disability at the time of death of the veteran, such five- 
year period of limitation shall run from the termination 
or removal of the legal disability. 
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‘‘(e) ESCHEATMENT.—Any funds in the hands of a 
fiduciary appointed by a State court or the Secretary de-
rived from benefits payable under laws administered by 
the Secretary, which under the law of the State wherein 
the beneficiary had last legal residence would escheat to 
the State, shall escheat to the United States and shall be 
returned by such fiduciary, or by the personal representa-
tive of the deceased beneficiary, less legal expenses of any 
administration necessary to determine that an escheat is 
in order, to the Department, and shall be deposited to the 
credit of the applicable revolving fund, trust fund, or ap-
propriation.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 55 of title 38, 
United States Code, is amended by inserting after 
the item relating to section 5502 the following new 
item: 
‘‘5502A. Supervision of fiduciaries.’’. 
(c) DEFINITION OF FIDUCIARY.—Section 5506 of 
title 38, United States Code is amended— 
(1) by striking ‘‘For purposes’’ and inserting 
‘‘(a) For purposes’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b)(1) For purposes of subsection (a), the term ‘per-
son’ includes any— 
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‘‘(A) State or local government agency whose 
mission is to carry out income maintenance, social 
service, or health care-related activities; 
‘‘(B) any State or local government agency with 
fiduciary responsibilities; or 
‘‘(C) any nonprofit social service agency that 
the Secretary determines— 
‘‘(i) regularly provides services as a fidu-
ciary concurrently to five or more individuals; 
and 
‘‘(ii) is not a creditor of any such indi-
vidual. 
‘‘(2) The Secretary shall maintain a list of State or 
local agencies and nonprofit social service agencies under 
paragraph (1) that are qualified to act as a fiduciary 
under this chapter. In maintaining such list, the Secretary 
may consult the lists maintained under section 807(h) of 
the Social Security Act (42 U.S.C. 1007(h)).’’. 
(d) QUALIFICATIONS.—Section 5507 of title 38, 
United States Code, is amended to read as follows: 
‘‘§ 5507. Inquiry, investigations, and qualification of 
fiduciaries 
‘‘(a) INVESTIGATION.—Any certification of a person 
for payment of benefits of a beneficiary to that person as 
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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 to be conducted in advance 
of such certification and in accordance with sub-
section (b); 
‘‘(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); 
‘‘(3) adequate evidence that the person to serve 
as fiduciary protects the private information of a 
beneficiary in accordance with subsection (d)(1); and 
‘‘(4) the furnishing of any bond that may be re-
quired by the Secretary, in accordance with sub-
section (f). 
‘‘(b) ELEMENTS OF INVESTIGATION.—(1) In con-
ducting an inquiry or investigation of a proposed fiduciary 
under subsection (a)(1), the Secretary shall conduct— 
‘‘(A) a face-to-face interview with the proposed 
fiduciary by not later than 30 days after the date on 
which such inquiry or investigation begins; and 
‘‘(B) a background check of the proposed fidu-
ciary to— 
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‘‘(i) in accordance with paragraph (2), de-
termine whether the proposed fiduciary has 
been convicted of a crime; and 
‘‘(ii) determine whether the proposed fidu-
ciary will serve the best interest of the bene-
ficiary, including by conducting a credit check 
of the proposed fiduciary and checking the 
records under paragraph (5). 
‘‘(2) The Secretary shall request information con-
cerning whether that person has been convicted of any of-
fense under Federal or State law. If that person has been 
convicted of such an offense, the Secretary may certify the 
person as a fiduciary only if the Secretary finds that the 
person is an appropriate person to act as fiduciary for the 
beneficiary concerned under the circumstances. 
‘‘(3) The Secretary shall conduct the background 
check described in paragraph (1)(B)— 
‘‘(A) each time a person is proposed to be a fi-
duciary, regardless of whether the person is serving 
or has served as a fiduciary; and 
‘‘(B) at no expense to the beneficiary. 
‘‘(4) Each proposed fiduciary shall disclose to the 
Secretary the number of beneficiaries that the fiduciary 
acts on behalf of. 
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‘‘(5) The Secretary shall maintain records of any per-
son who has— 
‘‘(A) previously served as a fiduciary; and 
‘‘(B) had such fiduciary status revoked by the 
Secretary. 
‘‘(6)(A) If a fiduciary appointed by the Secretary is 
convicted of a crime described in subparagraph (B), the 
Secretary shall notify the beneficiary of such conviction 
by not later than 14 days after the date on which the Sec-
retary learns of such conviction. 
‘‘(B) A crime described in this subparagraph is a 
crime— 
‘‘(i) for which the fiduciary is convicted while 
serving as a fiduciary for any person; 
‘‘(ii) that is not included in a report submitted 
by the fiduciary under section 5509(a) of this title; 
and 
‘‘(iii) that the Secretary determines could affect 
the ability of the fiduciary to act on behalf of the 
beneficiary. 
‘‘(c) INVESTIGATION OF CERTAIN PERSONS.—(1) In 
the case of a proposed fiduciary described in paragraph 
(2), the Secretary, in conducting an inquiry or investiga-
tion under subsection (a)(1), may carry out such inquiry 
or investigation on an expedited basis that may include 
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giving priority to conducting such inquiry or investigation. 
Any such inquiry or investigation carried out on such an 
expedited basis shall be carried out under regulations pre-
scribed 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 incom-
petent beneficiary; 
‘‘(C) a person who has been appointed a fi-
duciary of the beneficiary by a court of com-
petent jurisdiction; 
‘‘(D) being appointed to manage an estate 
where the annual amount of veterans benefits 
to be managed by the proposed fiduciary does 
not exceed $3,600, as adjusted pursuant to sec-
tion 5312 of this title; or 
‘‘(E) a person who is authorized to act on 
behalf of the beneficiary under a durable power 
of attorney. 
‘‘(d) PROTECTION OF PRIVATE INFORMATION.—(1) 
A fiduciary shall take all reasonable precautions to— 
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‘‘(A) protect the private information of a bene-
ficiary, including personally identifiable information; 
and 
‘‘(B) securely conducts financial transactions. 
‘‘(2) A fiduciary shall notify the Secretary of any ac-
tion of the fiduciary that compromises or potentially com-
promises the private information of a beneficiary. 
‘‘(e) POTENTIAL MISUSE OF FUNDS.—(1) If the Sec-
retary has reason to believe that a fiduciary may be mis-
using all or part of the benefit of a beneficiary, the Sec-
retary shall— 
‘‘(A) conduct a thorough investigation to deter-
mine the veracity of such belief; and 
‘‘(B) if such veracity is established, transmit to 
the officials described in paragraph (2) a report of 
such investigation. 
‘‘(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 ben-
efits under any law administered by such depart-
ment of agency for the use and benefit of a minor, 
incompetent, or other beneficiary. 
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‘‘(f) BOND.—In requiring the furnishing of a bond 
under subsection (a)(4), the Secretary shall— 
‘‘(1) ensure that any such bond is not paid 
using any funds of the beneficiary; and 
‘‘(2) consider— 
‘‘(A) the care a proposed fiduciary has 
taken to protect the interests of the beneficiary; 
and 
‘‘(B) the capacity of the proposed fiduciary 
to meet the financial requirements of the bond 
without sustaining hardship. 
‘‘(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)— 
‘‘(A) the date of the most recent back-
ground check and credit check performed by the 
Secretary under this section; 
‘‘(B) the date that any bond was paid 
under this section; 
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‘‘(C) the name, address, and telephone 
number of each beneficiary the fiduciary acts on 
behalf of; and 
‘‘(D) the amount that the fiduciary con-
trols with respect to each beneficiary described 
in subparagraph (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 ‘‘, subject to 
regulations prescribed pursuant to sub-
section (f), shall require a fiduciary to file 
an annual’’; and 
(ii) by adding at the end the following 
new sentence: ‘‘The Secretary shall trans-
mit 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: 
‘‘(c) MATTERS INCLUDED.—An annual report or ac-
counting under subsection (a) shall include the following: 
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‘‘(1) For each beneficiary that a fiduciary acts 
on behalf of— 
‘‘(A) the amount of the benefits of the ben-
eficiary 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 bene-
fits 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 abil-
ity of the fiduciary to act on behalf of the bene-
ficiary, including— 
‘‘(A) the fiduciary being convicted of any 
crime; 
‘‘(B) the fiduciary declaring bankruptcy; 
and 
‘‘(C) any judgments entered against the fi-
duciary. 
‘‘(d) RANDOM AUDITS.—The Secretary shall annu-
ally conduct random audits of fiduciaries who receive a 
commission pursuant to subsection 5502A(a)(1) of this 
title. 
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‘‘(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 
status of the fiduciary as the Secretary determines appro-
priate, including by revoking the fiduciary status of the 
fiduciary. 
‘‘(f) REGULATIONS.—(1) In prescribing regulations 
to carry out this section, the Secretary, in consultation 
with the Under Secretary for Benefits and the Under Sec-
retary for Health, shall ensure that the care provided by 
a fiduciary described in paragraph (2) to a beneficiary is 
not diminished or otherwise worsened by the fiduciary 
complying with this section. 
‘‘(2) A fiduciary described in this paragraph is a fidu-
ciary who, in addition to acting as a fiduciary for a bene-
ficiary, provides care to the beneficiary pursuant to this 
title (including such care provided under section 1720G 
of this title).’’; and 
(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 
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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 Sec-
retary shall include in the Annual Benefits Report of the 
Veterans Benefits Administration or the Secretary’s An-
nual Performance and Accountability Report’’ and insert-
ing ‘‘Not later than July 1 of each year, the Secretary 
shall submit to the Committees on Veterans’ Affairs of 
the House of Representatives 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 
Affairs shall submit to the Committee on Veterans’ Affairs 
of the Senate and the Committee on Veterans’ of the 
House of Representatives a comprehensive report on the 
implementation of the amendments made by this Act, in-
cluding— 
(1) detailed information on the establishment of 
new policies and procedures pursuant to such 
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amendments and training provided on such policies 
and procedures; and 
(2) a discussion of whether the Secretary 
should provide fiduciaries with standardized finan-
cial software to simplify reporting requirements. 
SEC. 3. ESTABLISHMENT OF PLACE OF REMEMBRANCE AT 
ARLINGTON NATIONAL CEMETERY. 
(a) ESTABLISHMENT AUTHORIZED.— 
(1) IN
GENERAL.—Chapter 446 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 4727. Place of Remembrance at Arlington National 
Cemetery 
‘‘(a) ESTABLISHMENT AUTHORIZED.—Under regula-
tions prescribed by the Secretary of Defense, the Secretary 
of the Army may establish at an appropriate location in 
Arlington National Cemetery a Place of Remembrance for 
the interment of cremated specimens or other portion of 
the remains of a deceased member of the armed forces 
described in subsection (b) when one of the conditions 
specified in subsection (c) applies with respect to the re-
mains of the member. 
‘‘(b) COVERED MEMBERS.—This section applies only 
with respect to members of the armed forces who die while 
on active duty— 
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‘‘(1) in a war or contingency operation; or 
‘‘(2) in the line of duty, consistent with regula-
tions prescribed by the Secretary of the Army with 
respect to burial at Arlington National Cemetery. 
‘‘(c) CONDITIONS ON INTERMENT OF REMAINS.— 
The conditions under which cremated specimens or other 
portion of the remains of a deceased member of the armed 
forces described in subsection (b) (including cremated 
specimens or other portion of remains believed by the Sec-
retary concerned to be from the remains of the deceased 
member) are authorized to be interred in the Place of Re-
membrance are any of the following: 
‘‘(1) The remains are unidentified. 
‘‘(2) The person designated under section 
1482(c) of this title to direct disposition of the re-
mains of the member agrees to interment of the re-
mains in the Place of Remembrance. 
‘‘(3) The person designated under section 
1482(c) of this title to direct disposition of the re-
mains of the member has indicated to the Secretary 
concerned that no further notification is required if 
a specimen or portion of the remains of the member 
is discovered. 
‘‘(4) When, especially in historical cases, the 
Secretary concerned determines that there is no one 
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authorized to direct the disposition of the remains of 
the member and the Secretary concerned rec-
ommends interment of the remains in the Place of 
Remembrance.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end the following new item: 
‘‘4727. Place of Remembrance at Arlington National Cemetery.’’. 
(b) RETROACTIVE APPLICATION.—Section 4727 of 
title 10, United States Code, as added by subsection (a), 
applies with respect to any war or contingency operation 
in which members of the Armed Forces participated and 
covers members of the Armed Forces who died in the line 
of duty before the date of the enactment of this Act, con-
sistent with regulations prescribed by the Secretary of the 
Army with respect to burial at Arlington National Ceme-
tery. 
SEC. 4. FURNISHING CASKETS AND URNS FOR DECEASED 
VETERANS WITH NO KNOWN NEXT OF KIN. 
(a) IN GENERAL.—Section 2306 of title 38, United 
States Code, is amended— 
(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; 
(2) by inserting after subsection (e) the fol-
lowing new subsection (f): 
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‘‘(f) The Secretary shall furnish a casket or urn, of 
such quality as the Secretary considers appropriate for a 
dignified burial, for burial in a national cemetery of a de-
ceased veteran described in section 2414(b) of this title.’’; 
and 
(3) in subsection (h), as redesignated by para-
graph (1), by adding at the end the following new 
paragraph: 
‘‘(4) A casket or urn may not be furnished under sub-
section (f) for burial of a person described in section 
2411(b) of this title.’’. 
(b) EFFECTIVE DATE.—Subsections (f) and (h)(4) of 
section 2306 of title 38, United States Code, as added by 
subsection (a), shall take effect on the date of the enact-
ment of this Act and shall apply with respect to deaths 
occurring on or after such date. 
SEC. 5. IMPROVED COMMUNICATION BETWEEN DEPART-
MENT OF VETERANS AFFAIRS AND MEDICAL 
EXAMINERS AND FUNERAL DIRECTORS. 
(a) IN GENERAL.—Chapter 24 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
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‘‘§ 2414. Communication between Department of Vet-
erans Affairs and medical examiners and 
funeral directors 
‘‘(a) REQUIRED INFORMATION.—With respect to 
each deceased veteran described in subsection (b) who is 
transported to a national cemetery for burial, the Sec-
retary shall ensure that the local medical examiner, fu-
neral director, county service group, or other entity re-
sponsible for the body of the deceased veteran before such 
transportation submits to the Secretary the following in-
formation: 
‘‘(1) Whether the deceased veteran was cre-
mated. 
‘‘(2) The steps taken to ensure that the de-
ceased veteran has no next of kin. 
‘‘(b) DECEASED VETERAN DESCRIBED.—A deceased 
veteran described in this subsection is a deceased veteran 
whom the Secretary determines— 
‘‘(1) that there is no next of kin or other person 
claiming the body of the deceased veteran; and 
‘‘(2) does not have sufficient resources to cover 
burial and funeral expenses. 
‘‘(c) 
DETERMINATION
OF
SUFFICIENT
RE-
SOURCES.—If the Secretary is unable to make a reason-
able determination of the amount of the resources of a 
deceased veteran under subsection (b)(2), the Secretary 
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shall deem such resources to be an amount that is not 
sufficient to cover burial and funeral expenses.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2413 the following new 
item: 
‘‘2414. Communication between Department of Veterans Affairs and medical ex-
aminers and funeral directors.’’. 
(c) EFFECTIVE DATE.—Section 2414 of title 38, 
United States Code, as added by subsection (a), shall take 
effect on the date of the enactment of this Act and shall 
apply with respect to deaths occurring on or after the date 
that is 180 days after the date of the enactment of this 
Act. 
SEC. 6. REPORT ON COMPLIANCE OF DEPARTMENT OF 
VETERANS AFFAIRS WITH INDUSTRY STAND-
ARDS FOR CASKETS AND URNS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Vet-
erans Affairs shall submit to the Committee on Veterans’ 
Affairs of the Senate and the Committee on Veterans’ Af-
fairs of the House of Representatives a report on the com-
pliance of the Department of Veterans Affairs with indus-
try standards for caskets and urns. 
(b) ELEMENTS.—The report required by subsection 
(a) shall include the following: 
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(1) A description of industry standards for cas-
kets and urns. 
(2) An assessment of compliance with such 
standards at National Cemeteries administered by 
the Department with respect to caskets and urns 
used for the interment of those eligible for burial at 
such cemeteries. 
SEC. 7. EXCLUSION OF PERSONS CONVICTED OF COMMIT-
TING CERTAIN SEX OFFENSES FROM INTER-
MENT OR MEMORIALIZATION IN NATIONAL 
CEMETERIES, ARLINGTON NATIONAL CEME-
TERY, 
AND 
CERTAIN 
STATE 
VETERANS’ 
CEMETERIES AND FROM RECEIVING CER-
TAIN FUNERAL HONORS. 
(a) PROHIBITION AGAINST.—Section 2411(b) of title 
38, United States Code, is amended by adding at the end 
the following new paragraph: 
‘‘(4) A person— 
‘‘(A) who has been convicted of a Federal 
or State crime causing the person to be a tier 
III sex offender for purposes of the Sex Of-
fender Registration and Notification Act (42 
U.S.C. 16901 et seq.); 
‘‘(B) who, for such crime, is sentenced to 
a minimum of life imprisonment; and 
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‘‘(C) whose conviction is final (other than 
a person whose sentence was commuted by the 
President or Governor of a State, as the case 
may be).’’. 
(b) 
CONFORMING
AMENDMENTS.—Section 
2411(a)(2) of such title is amended— 
(1) by striking ‘‘or (b)(2)’’ each place it ap-
pears and inserting ‘‘, (b)(2), or (b)(4)’’; and 
(2) by striking ‘‘capital’’ each place it appears. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to interments and me-
morializations that occur on or after the date of the enact-
ment of this Act. 
SEC. 8. VETERANS FREEDOM OF CONSCIENCE PROTEC-
TION. 
Section 2404 of title 38, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(h)(1) With respect to the interment or funeral, me-
morial service, or ceremony of a deceased individual at a 
national cemetery, the Secretary shall ensure that— 
‘‘(A) the expressed wishes of the next of kin or 
other agent of the deceased individual are respected 
and given appropriate deference when evaluating 
whether the proposed interment or funeral, memorial 
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service, or ceremony affects the safety and security 
of the national cemetery and visitors to the ceme-
tery; 
‘‘(B) to the extent possible, all appropriate pub-
lic areas of the cemetery, including committal shel-
ters, chapels, and benches, may be used by the fam-
ily of the deceased individual for contemplation, 
prayer, mourning, or reflection; and 
‘‘(C) during such interment or funeral, memo-
rial service, or ceremony, the family of the deceased 
individual may display any religious or other sym-
bols chosen by the family. 
‘‘(2) Subject to regulations prescribed by the Sec-
retary under paragraph (5), including such regulations en-
suring the security of a national cemetery, the Secretary 
shall provide to any military or volunteer veterans honor 
guard, including such guards belonging to a veterans serv-
ice organization or other non-governmental group that 
provides services to veterans, access to public areas of a 
national cemetery if such access is requested by the next 
of kin or other agent of a deceased individual whose inter-
ment or funeral, memorial service, or ceremony is being 
held in such cemetery. 
‘‘(3) With respect to the interment or funeral, memo-
rial service, or ceremony of a deceased individual at a na-
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tional cemetery, the Secretary shall notify the next of kin 
or other agent of the deceased individual of funeral honors 
available to the deceased veteran, including such honors 
provided by any military or volunteer veterans honor 
guard described in paragraph (2). 
‘‘(4) Any person aggrieved by a violation of this sub-
section or any regulation prescribed pursuant to this sub-
section may in a civil action in an appropriate Federal 
court obtain any appropriate relief against the Federal 
Government with respect to the violation. Standing to as-
sert a claim or defense under this subsection shall be gov-
erned by the general rules of standing under Article III 
of the Constitution. 
‘‘(5) The Secretary shall prescribe regulations to 
carry out this subsection.’’. 
SEC. 9. PROVISION OF ACCESS TO CASE-TRACKING INFOR-
MATION. 
(a) IN GENERAL.—Chapter 59 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 5906. Provision of access to case-tracking informa-
tion 
‘‘(a) IN GENERAL.—(1) In accordance with sub-
section (b), the Secretary shall provide a covered employee 
with access to the case-tracking system to provide a vet-
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eran with information regarding the status of a claim sub-
mitted by such veteran, regardless of whether such em-
ployee is acting under a power of attorney executed by 
such veteran. 
‘‘(2) In providing a covered employee with access to 
the case-tracking system under paragraph (1), the Sec-
retary shall ensure— 
‘‘(A) that such access— 
‘‘(i) is provided in a manner that does not 
allow such employee to modify the data con-
tained in such system; and 
‘‘(ii) does not include access to medical 
records; and 
‘‘(B) that each time a covered employee ac-
cesses such system, the employee must certify that 
such access is for official purposes only. 
‘‘(b) PRIVACY CERTIFICATION COURSE.—The Sec-
retary may not provide a covered employee with access to 
the case-tracking system under subsection (a)(1) unless 
the covered employee has successfully completed a certifi-
cation course on privacy issues provided by the Secretary. 
‘‘(c) TREATMENT OF DISCLOSURE.—The access to 
information by a covered employee pursuant to subsection 
(a)(1) shall be deemed to be— 
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‘‘(1) a covered disclosure under section 552a(b) 
of title 5; and 
‘‘(2) a permitted disclosure under regulations 
promulgated under section 264(c) of the Health In-
surance Portability and Accountability Act of 1996 
(42 U.S.C. 1320d–2 note). 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘case-tracking system’ means the 
system of the Department of Veterans Affairs that 
provides information regarding the status of a claim 
submitted by a veteran. 
‘‘(2) The term ‘covered employee’ means— 
‘‘(A) an employee of a Member of Congress 
who assists the constituents of the Member with 
issues regarding departments or agencies of the 
Federal Government; or 
‘‘(B) an employee of a State or local gov-
ernmental agency (including a veterans service 
officer) who, in the course of carrying out the 
responsibilities of such employment, assists vet-
erans with claims for any benefit under the 
laws administered by the Secretary.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘5906. Provision of access to case-tracking information.’’. 
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SEC. 10. NOTIFICATION BY THE SECRETARY OF VETERANS 
AFFAIRS OF INDIVIDUALS WHOSE SENSITIVE 
PERSONAL INFORMATION IS INVOLVED IN A 
DATA BREACH. 
(a) IN GENERAL.—Subchapter III of chapter 57 of 
title 38, United States Code is amended by inserting after 
section 5724 the following new section: 
‘‘§ 5724A. Data breach notification 
‘‘(a) NOTIFICATION REQUIREMENT.—Except as pro-
vided in subsection (d), in the event of a data breach with 
respect to sensitive personal information that is processed 
or maintained by the Secretary, by not later than 10 busi-
ness days after the date on which the Secretary learns of 
the data breach, the Secretary shall notify the appropriate 
committees of Congress and each individual whose sen-
sitive personal information is involved in the data breach 
is notified of the data breach. If the Secretary determines 
that providing such notification within 10 business days 
is not feasible due to circumstances necessary to accu-
rately identify the individuals whose sensitive personal in-
formation is involved in the data breach or to prevent fur-
ther breach or unauthorized disclosure and reasonably re-
store the integrity of the data system the Secretary shall 
provide such notification not later than 15 business days 
after the date on which the Secretary learns of the data 
breach. 
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‘‘(b) CONTRACTS FOR DATA PROCESSING OR MAIN-
TENANCE.—If the Secretary enters into a contract for the 
performance of any Department function that requires ac-
cess to sensitive personal information, the Secretary shall 
require as a condition of the contract that the contractor 
agree to provide notification of data breaches in the same 
manner as required of the Secretary under subsection (a). 
‘‘(c) METHOD AND CONTENT OF NOTIFICATION.— 
(1) Notification provided to an individual under subsection 
(a) shall be provided clearly and conspicuously by one of 
the following methods: 
‘‘(A) Written notification. 
‘‘(B) Notification by email or other electronic 
means, if the Secretary’s primary method of commu-
nication with the individual is by email or such other 
electronic means. 
‘‘(2) Regardless of the method by which notification 
is provided to an individual under paragraph (1), such no-
tification shall include— 
‘‘(A) a description of the sensitive personal in-
formation involved in the data breach; 
‘‘(B) a telephone number that the individual 
may use, at no cost to the individual, to contact an 
appropriate employee of the Department to inquire 
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about the data breach or the individual’s sensitive 
personal information maintained by the Department; 
‘‘(C) notice that the individual is entitled to re-
ceive, at no cost to such individual, credit protection 
services under section 5724 of this title; 
‘‘(D) the toll-free contact telephone numbers 
and addresses for the major credit reporting agen-
cies; and 
‘‘(E) a toll-free telephone number and website 
address whereby the individual may obtain informa-
tion regarding identity theft. 
‘‘(d) NOTIFICATION OF GENERAL PUBLIC.—The Sec-
retary, acting through the Office of Public Affairs of the 
Department, shall notify the general public concerning any 
data breach involving sensitive personal information by 
not later than 10 business days after the date on which 
the Secretary learns of the data breach, unless the Sec-
retary determines that to do so is not feasible due to cir-
cumstances necessary to accurately identify the individuals 
whose sensitive personal information is involved in the 
data breach or to prevent further breach or unauthorized 
disclosure and reasonably restore the integrity of the data 
system, such notification shall be made as soon as pos-
sible. 
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‘‘(e) APPROPRIATE COMMITTEES OF CONGRESS.—In 
this section, the term ‘appropriate committees of Con-
gress’ means the Committee on Veterans Affairs’ of the 
House of Representatives and the Committee on Veterans’ 
Affairs of the Senate.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 5724 the following new 
item: 
‘‘5724A. Data breach notification.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to a data breach oc-
curring on or after the date that is 90 days after the date 
of the enactment of this Act. 
SEC. 11. LIMITATION ON BONUSES FOR DEPARTMENT OF 
VETERANS AFFAIRS EMPLOYEES WHO VIO-
LATE FEDERAL CIVIL LAWS OR REGULA-
TIONS. 
(a) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 713. Limitation on bonuses 
‘‘(a) IN GENERAL.—(1) The Secretary shall ensure 
that no employee of the Department who, during any year, 
knowingly violates any law, regulation, or policy described 
in paragraph (2) receives a bonus for or during that year. 
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