IB 
Union Calendar No. 490 
112TH CONGRESS 
2D SESSION 
H. R. 5948 
[Report No. 112–678] 
To amend title 38, United States Code, to improve the supervision of fidu-
ciaries of veterans under the laws administered by the Secretary of 
Veterans Affairs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2012 
Mr. JOHNSON of Ohio introduced the following bill; which was referred to the 
Committee on Veterans’ Affairs 
SEPTEMBER 19, 2012 
Additional sponsors: Mr. MILLER of Florida, Mr. ROE of Tennessee, Mr. 
FLORES, Mr. COHEN, Mr. STIVERS, Mr. CULBERSON, and Mr. MICHAUD 
SEPTEMBER 19, 2012 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 12, 2012] 
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A BILL 
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, 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. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Table of Contents. 
Sec. 2. Improvement of fiduciaries for veterans. 
Sec. 3. Establishment of Place of Remembrance at Arlington National Cemetery. 
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 in-
terment 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. Authority for the performance of medical disability examinations by con-
tract physicians. 
Sec. 10. Provision of access to case-tracking information. 
Sec. 11. Notification by the Secretary of Veterans Affairs of individuals whose 
sensitive personal information is involved in a data breach. 
Sec. 12. Limitation on bonuses for Department of Veterans Affairs employees who 
violate Federal civil laws or regulations. 
Sec. 13. Limitation on awards and bonuses to employees of the Department of 
Veterans Affairs. 
Sec. 14. Sense of Congress on Patriot Guard Riders. 
Sec. 15. Sense of Congress honoring Korean War veterans. 
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 Sec-
retary that the interest of the beneficiary would be served 
thereby, payment of benefits under any law administered 
by the Secretary may be made directly to the beneficiary 
or to a relative or some other fiduciary for the use and ben-
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efit of the beneficiary, regardless of any legal disability 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 fidu-
ciary without obtaining a court order for appointment of 
a guardian, conservator, or other fiduciary under the au-
thority provided in section 5502(b) of this title. 
‘‘(b) APPEALS.—(1) If the Secretary determines a ben-
eficiary to be mentally incompetent for purposes of appoint-
ing a fiduciary under this chapter, the Secretary shall pro-
vide such beneficiary with a written statement detailing the 
reasons for such determination. 
‘‘(2) A beneficiary whom the Secretary has determined 
to be mentally incompetent for purposes of appointing a 
fiduciary under this chapter may appeal such determina-
tion. 
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points an individual not so designated as the fiduciary for 
such beneficiary, the Secretary shall notify such beneficiary 
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 fi-
duciary 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 Sec-
retary determines that a commission is necessary in order 
to obtain the services of a fiduciary in the best interests 
of a beneficiary, the Secretary may authorize a fiduciary 
appointed by the Secretary to obtain from the monthly ben-
efits provided to the beneficiary a reasonable commission 
for fiduciary services rendered, but the commission 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 Secretary 
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 Sec-
retary 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 beneficiary 
is acting in such a number of cases as to make it impracti-
cable to conserve properly the estates or to supervise the per-
sons of the beneficiaries, the Secretary may refuse to make 
future payments in such cases as the Secretary may deem 
proper. 
‘‘(b) COURT.—Whenever it appears that any fiduciary, 
in the opinion of the Secretary, is not properly executing 
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 de-
pendents of the ward, then the Secretary 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 or refuse, after reasonable 
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notice, to render an account to the Secretary from time to 
time showing the application of such payments for the ben-
efit of such incompetent or minor beneficiary, or who shall 
neglect or refuse to administer the estate according to law. 
The Secretary may require the fiduciary, as part of such 
account, to disclose any additional financial information 
concerning the beneficiary (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 insti-
tuted by the Secretary 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 ex-
penses 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 adminis-
tered by the Secretary or the removal of such fiduciary and 
appointment of another, and of expenses in connection with 
the administration of such benefits by such fiduciaries, or 
in connection with any other court proceeding hereby au-
thorized, when such payment is authorized by the Secretary. 
‘‘(d) TEMPORARY PAYMENT OF BENEFITS.—All or any 
part of any benefits the payment of which is suspended or 
withheld under this section may, in the discretion of the 
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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 beneficiary, or, in the case 
of an incompetent veteran, may be apportioned to the de-
pendent 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 dependents 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 dependents. 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 com-
petent, or if a minor, attains majority, or otherwise to the 
beneficiary’s fiduciary, 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 bene-
ficiary’s 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 Sec-
retary deposited before or after August 7, 1959, in the per-
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sonal funds of patients trust fund on account of such vet-
eran 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 sur-
viving spouse, the children (without regard to age or mar-
ital status) in equal parts, and the dependent parents of 
such veteran, in equal parts. If any balance remains, such 
balance 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. 
‘‘(e) ESCHEATMENT.—Any funds in the hands of a fi-
duciary appointed by a State court or the Secretary derived 
from benefits payable under laws administered by the Sec-
retary, which under the law of the State wherein the bene-
ficiary had last legal residence would escheat to the State, 
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shall escheat to the United States and shall be returned by 
such fiduciary, or by the personal representative of the de-
ceased 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 ap-
plicable revolving fund, trust fund, or appropriation.’’. 
(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— 
‘‘(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— 
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‘‘(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 So-
cial 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 
such beneficiary’s fiduciary under section 5502 of this title 
shall be made on the basis of— 
‘‘(1) an inquiry or investigation by the Secretary 
of the fitness of that person to serve as fiduciary for 
that beneficiary to be conducted in advance of such 
certification and in accordance with subsection (b); 
‘‘(2) adequate evidence that certification of that 
person as fiduciary for that beneficiary is in the in-
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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 bene-
ficiary 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— 
‘‘(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). 
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‘‘(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 fidu-
ciary, 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 Sec-
retary the number of beneficiaries that the fiduciary acts 
on behalf of. 
‘‘(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 
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not later than 14 days after the date on which the Secretary 
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 ben-
eficiary. 
‘‘(c) INVESTIGATION OF CERTAIN PERSONS.—(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 in-
vestigation on an expedited basis that may include giving 
priority to conducting such inquiry or investigation. Any 
such inquiry or investigation carried out on such an expe-
dited 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; 
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‘‘(B) the spouse or parent of an incompetent 
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 section 
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— 
‘‘(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-
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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 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 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 
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‘‘(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 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— 
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(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 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: 
‘‘(c) MATTERS INCLUDED.—An annual report or ac-
counting under subsection (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 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. 
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‘‘(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. 
‘‘(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) REGULATIONS.—(1) In prescribing regulations to 
carry out this section, the Secretary, in consultation with 
the Under Secretary for Benefits and the Under Secretary 
for Health, shall ensure that the care provided by a fidu-
ciary described in paragraph (2) to a beneficiary is not 
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diminished or otherwise worsened by the fiduciary com-
plying 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 
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 
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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’ of the House 
of Representatives a comprehensive report on the implemen-
tation of the amendments made by this Act, including— 
(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. 3. ESTABLISHMENT OF PLACE OF REMEMBRANCE AT 
ARLINGTON NATIONAL CEMETERY. 
(a) ESTABLISHMENT AUTHORIZED.—The Secretary of 
the Army may establish at an appropriate location in Ar-
lington National Cemetery a Place of Remembrance for the 
interment of cremated fragments of the remains of members 
of the Armed Forces who died in the circumstances specified 
in subsection (c) when one of the conditions specified in 
subsection (d) applies with respect to the remains. 
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(b) REGULATIONS; DESIGN.—The Secretary of the 
Army shall— 
(1) prescribe such regulations as may be nec-
essary to carry out this section; and 
(2) determine how the Place of Remembrance 
shall be designed. 
(c) COVERED CIRCUMSTANCES.—The Secretary of the 
Army shall suggest that the Place of Remembrance be for 
the cremated fragments of remains of members of the Armed 
Forces who died— 
(1) in any war or contingency operation prior 
to or after the date of the enactment of this Act; or 
(2) in the line of duty prior to or after the date 
of the enactment of this Act, consistent with regula-
tions prescribed by the Secretary with respect to bur-
ial at Arlington National Cemetery. 
(d) REMAINS AUTHORIZED FOR INTERMENT.—Sub-
section (a) applies to fragments of the remains of a deceased 
member of the Armed Forces described in such subsection 
(or fragments reasonable believed to be from the remains 
of a deceased member of the Armed Forces described in such 
subsection) that— 
(1) are unidentifiable by use of DNA testing or 
other means because of the condition of the fragments; 
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(2) are unclaimed after a reasonable period of 
time; 
(3) are identified and authorized for interment 
in the Place of Remembrance by the person designated 
under section 1482(c) of title 10, United States Code, 
to direct disposition of the remains of the member; or 
(4) are designated as ‘‘No Further Pursuit’’ re-
mains in cases in which the family of a deceased 
member has indicated to the Secretary of Army that 
the family does not want to be consulted when frag-
ments of the remains of the member are found. 
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 following 
new subsection (f): 
‘‘(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 
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(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 enactment 
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 following 
new section: 
‘‘§ 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 trans-
ported to a national cemetery for burial, the Secretary shall 
ensure that the local medical examiner, funeral director, 
county service group, or other entity responsible for the body 
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of the deceased veteran before such transportation submits 
to the Secretary the following information: 
‘‘(1) Whether the deceased veteran was cremated. 
‘‘(2) The steps taken to ensure that the deceased 
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 RESOURCES.— 
If the Secretary is unable to make a reasonable determina-
tion of the amount of the resources of a deceased veteran 
under subsection (b)(2), the Secretary shall deem such re-
sources 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 
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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 VET-
ERANS AFFAIRS WITH INDUSTRY STANDARDS 
FOR CASKETS AND URNS. 
(a) IN GENERAL.—Not later than 180 days 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’ Affairs of 
the House of Representatives a report on the compliance 
of the Department of Veterans Affairs with industry stand-
ards for caskets and urns. 
(b) ELEMENTS.—The report required by subsection (a) 
shall include the following: 
(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 ceme-
teries. 
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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’ CEME-
TERIES AND FROM RECEIVING CERTAIN FU-
NERAL 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 Offender Reg-
istration and Notification Act (42 U.S.C. 16901 
et seq.); 
‘‘(B) who, for such crime, is sentenced to a 
minimum of life imprisonment; and 
‘‘(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 appears 
and inserting ‘‘, (b)(2), or (b)(4)’’; and 
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(2) by striking ‘‘capital’’ each place it appears. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to interments and memori-
alizations that occur on or after the date of the enactment 
of this Act. 
SEC. 8. VETERANS FREEDOM OF CONSCIENCE PROTEC-
TION. 
Section 2404 of title 38, United States Code, is amend-
ed by adding at the end the following new subsection: 
‘‘(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 
service, or ceremony affects the safety and security of 
the national cemetery and visitors to the cemetery; 
‘‘(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 family 
of the deceased individual for contemplation, prayer, 
mourning, or reflection; and 
‘‘(C) during such interment or funeral, memorial 
service, or ceremony, the family of the deceased indi-
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vidual may display any religious or other symbols 
chosen by the family. 
‘‘(2) Subject to regulations prescribed by the Secretary 
under paragraph (5), including such regulations ensuring 
the security of a national cemetery, the Secretary shall pro-
vide to any military or volunteer veterans honor guard, in-
cluding such guards belonging to a veterans service organi-
zation or other non-governmental group that provides serv-
ices to veterans, access to public areas of a national ceme-
tery if such access is requested by the next of kin or other 
agent of a deceased individual whose interment or funeral, 
memorial service, or ceremony is being held in such ceme-
tery. 
‘‘(3) With respect to the interment or funeral, memo-
rial service, or ceremony of a deceased individual at a na-
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 assert 
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a claim or defense under this subsection shall be governed 
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. AUTHORITY FOR THE PERFORMANCE OF MEDICAL 
DISABILITY EXAMINATIONS BY CONTRACT 
PHYSICIANS. 
Section 704(c) of the Veterans Benefits Act of 2003 (38 
U.S.C. 5101 note) is amended by striking ‘‘December 31, 
2012’’ and inserting ‘‘December 31, 2017’’. 
SEC. 10. 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 following: 
‘‘§ 5906. Provision of access to case-tracking informa-
tion 
‘‘(a) IN GENERAL.—(1) In accordance with subsection 
(b), the Secretary shall provide a covered employee with ac-
cess to the case-tracking system to provide a veteran with 
information regarding the status of a claim submitted by 
such veteran, regardless of whether such employee is acting 
under a power of attorney executed by such veteran. 
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‘‘(2) In providing a covered employee with access to 
the case-tracking system under paragraph (1), the Secretary 
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 accesses 
such system, the employee must certify that such ac-
cess 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 certification 
course on privacy issues provided by the Secretary. 
‘‘(c) TREATMENT OF DISCLOSURE.—The access to in-
formation by a covered employee pursuant to subsection 
(a)(1) shall be deemed to be— 
‘‘(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 Insur-
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ance 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 govern-
mental agency (including a veterans service offi-
cer) who, in the course of carrying out the re-
sponsibilities 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. 11. 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 sensitive 
personal information is involved in the data breach is noti-
fied of the data breach. If the Secretary determines that pro-
viding such notification within 10 business days is not fea-
sible due to circumstances necessary to accurately identify 
the individuals whose sensitive personal information is in-
volved in the data breach or to prevent further breach or 
unauthorized disclosure and reasonably restore the integrity 
of the data system the Secretary shall provide such notifica-
tion 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 MAINTE-
NANCE.—If the Secretary enters into a contract for the per-
formance of any Department function that requires access 
to sensitive personal information, the Secretary shall re-
quire 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 infor-
mation 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 agencies; 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 Sec-
retary learns of the data breach, unless the Secretary deter-
mines that to do so is not feasible due to circumstances nec-
essary to accurately identify the individuals whose sensitive 
personal information is involved in the data breach or to 
prevent further breach or unauthorized disclosure and rea-
sonably restore the integrity of the data system, such notifi-
cation shall be made as soon as possible. 
‘‘(e) APPROPRIATE COMMITTEES OF CONGRESS.—In 
this section, the term ‘appropriate committees of Congress’ 
means the Committee on Veterans Affairs’ of the House of 
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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 occurring 
on or after the date that is 90 days after the date of the 
enactment of this Act. 
SEC. 12. 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 following 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. 
‘‘(2) A law, regulation, or policy described in this 
paragraph is any of the following: 
‘‘(A) A Federal civil law or Federal regulation, 
including such civil laws or regulations covered under 
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the Federal Acquisition Regulation and the Veterans 
Affairs Acquisition Regulation. 
‘‘(B) An internal policy of the Department. 
‘‘(b) CERTIFICATION.—The Secretary shall annually 
certify to Congress that each bonus awarded by the Sec-
retary during the previous year was awarded in accordance 
with subsection (a)(1). 
‘‘(c) BONUS DEFINED.—For purposes of this section, 
the term ‘bonus’ includes— 
‘‘(1) a retention incentive; 
‘‘(2) a retention incentive payment; 
‘‘(3) a retention incentive award; and 
‘‘(4) any other incentive requiring approval from 
the Central Office Human Resource Service, the Chief 
Business Office Workforce Management, or the Cor-
porate Senior Executive Management Office.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘713. Limitation on bonuses.’’. 
SEC. 13. LIMITATION ON AWARDS AND BONUSES TO EM-
PLOYEES OF THE DEPARTMENT OF VET-
ERANS AFFAIRS. 
For each of fiscal years 2013 through 2017, the Sec-
retary of Veterans Affairs may not pay more than 
$357,613,229 in awards or bonuses under chapter 45 or 53 
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of title 5, United States Code, or any other awards or bo-
nuses authorized under such title. 
SEC. 14. SENSE OF CONGRESS ON PATRIOT GUARD RIDERS. 
(a) FINDINGS.—Congress finds the following: 
(1) The Patriot Guard Riders were founded in 
2005 in Mulvane, Kansas, with a mission to show 
sincere respect for fallen members of the Armed Forces 
by attending their funeral services as invited guests of 
the member’s family. 
(2) The Patriot Guard Riders have more than 
220,000 members nationwide from all walks of life. 
(3) The Patriot Guard Riders shield the mourn-
ing family and friends from interruptions created by 
any protestor or group of protestors. 
(4) The Patriot Guard Riders engage only in re-
spectful acts in honor of a fallen member of the 
Armed Forces. 
(5) The members of the Patriot Guard Riders 
willingly give their time, energy, and money to re-
spect the memory of fallen members of the Armed 
Forces. 
(6) The men and women of the Armed Forces 
who fight to preserve freedom deserve the utmost re-
spect and support of the American people. 
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(7) The Patriot Guard Riders provide a unique 
service that honors fallen members of the Armed 
Forces and their families. 
(b) SENSE OF CONGRESS.—Congress— 
(1) commends the Patriot Guard Riders and all 
of the other volunteers involved in shielding the 
mourning family and friends of a fallen member of 
the Armed Forces from interruptions created by any 
protestor or group of protestors; and 
(2) recognizes the sacrifices that veterans, mem-
bers of the Armed Forces, and their families have 
made, and continue to make, on behalf of the United 
States. 
SEC. 15. SENSE OF CONGRESS HONORING KOREAN WAR 
VETERANS. 
(a) FINDINGS.—Congress finds the following: 
(1) On June 25, 1950, Communist North Korea 
invaded the Republic of Korea with approximately 
135,000 troops to initiate the Korean War. 
(2) Nearly 1,800,000 members of the Armed 
Forces of the United States served along with the 
forces of the Republic of Korea and 20 other Allied 
nations under the United Nations Command to de-
fend freedom and democracy in the Korean Penin-
sula. 
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(3) The United States suffered 36,574 dead and 
103,284 wounded during the Korean War in some of 
the most horrific conditions in the history of warfare. 
(4) Almost 60 years have passed since the sign-
ing of the cease-fire agreement at Panmunjom on 
July 27, 1953, and the Korean peninsula still tech-
nically remains in a state of war. 
(5) The Korean War has become a ‘‘Forgotten 
War’’ for many Americans. 
(6) Many of the members of the Armed Forces 
who fought in the Korean War returned home without 
the fanfare that greeted the heroes of World Wars I 
and II. 
(7) Korean War veterans deserve to be recognized 
by all Americans for their honorable service during 
the Korean War in defense of democracy and freedom. 
(8) The tide of communism on the Korean Pe-
ninsula was halted, liberty triumphed over tyranny, 
and the Republic of Korea has developed into a mod-
ern and prosperous democracy because of the selfless 
sacrifice of the Korean War veterans. 
(9) The people of the United States and the Re-
public of Korea are eternally grateful to the Korean 
War veterans. 
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(10) It is important to include the history of the 
Korean War in the curricula of American schools so 
that future generations never forget the sacrifices of 
the Korean War veterans. 
(11) The Department of Defense 60th Anniver-
sary of the Korean War Commemoration Committee 
will implement a national campaign to honor the Ko-
rean War veterans, remember those Korean War vet-
erans still counted among the missing in action, and 
educate the American people concerning the ongoing 
relevance of the Korean War. 
(12) The commemorative campaign will include 
ceremonies in the United States and the Republic of 
Korea in recognition of June 25, 1950, and July 27, 
1953, and a national media and outreach campaign 
for Veterans Day 2012 to honor the Korean War vet-
erans. 
(b) SENSE OF CONGRESS.—On the occasion of the 60th 
anniversary of the Korean War, Congress recognizes the im-
portance of the contributions and sacrifices made by vet-
erans of the Korean War. 
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Union Calendar No. 490 
112TH CONGRESS 
2D SESSION 
H. R. 5948 
[Report No. 112–678] 
A BILL 
To amend title 38, United States Code, to improve 
the supervision of fiduciaries of veterans under 
the laws administered by the Secretary of Vet-
erans Affairs, and for other purposes. 
SEPTEMBER 19, 2012 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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