(iii) is otherwise compromised as a re-
sult of a security breach, including any ac-
tion or ommission by an officer, employee, 
volunteer, or contractor (or employee of a 
contractor) of the Department of Veterans 
Affairs in contravention of any security 
policy or procedure of the Department that 
results in such a breach; and 
(B) who suffered an injury as a result of 
the unauthorized use, disclosure, or dissemina-
tion of personal identifying information that 
was included in data described in subparagraph 
(A). 
(3) OFFICE.—The term ‘‘Office’’ means the Of-
fice of Veterans Identity Protection Claims estab-
lished under section 4(a). 
SEC. 4. OFFICE OF VETERANS IDENTITY PROTECTION 
CLAIMS. 
(a) OFFICE ESTABLISHED.—There is established an 
independent office of the executive branch to receive, proc-
ess, and pay claims in accordance with this Act. Such of-
fice shall be known as the Office of Veterans Identity Pro-
tection Claims. 
(b) DIRECTOR.—Not later than 30 days after the en-
actment of this Act, the President shall appoint a director 
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of the Office of Veterans Identity Protection Claims. The 
Director shall, on behalf of the United States, investigate, 
consider, ascertain, adjust, determine, grant, deny, or set-
tle any claim for money damages asserted under section 
5(b). 
(c) FUNDING.—The Office— 
(1) shall be funded from funds made available 
to the Director under this Act; 
(2) may reimburse other Federal agencies for 
claims processing support and assistance; 
(3) may appoint and fix the compensation of 
such temporary personnel as may be necessary, with-
out regard to the provisions of title 5, United States 
Code, governing appointments in competitive service; 
and 
(4) upon the request of the Director, may re-
quest that the head of any Federal department or 
agency detail, on a reimbursable basis, any of the 
personnel of that department or agency to the Office 
to assist it in carrying out its duties under this Act. 
SEC. 5. REIMBURSEMENT FOR INJURIES SUFFERED. 
(a) REIMBURSEMENT.—Each injured person shall be 
entitled to receive from the United States— 
(1) reimbursement for any injuries suffered by 
the injured person as a result of the unauthorized 
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use, disclosure, or dissemination of personal identi-
fying information that was included in the data de-
scribed in section 3(2)(A); and 
(2) damages described in subsection (d)(3), as 
determined by the Director. 
(b) SUBMISSION OF CLAIMS.—Not later than 2 years 
after the date on which regulations are first promulgated 
under subsection (f), an injured person may submit to the 
Director a written claim for one or more injuries suffered 
by the injured person in accordance with such require-
ments as the Director determines to be appropriate. 
(c) INVESTIGATION OF CLAIMS.— 
(1) APPLICABILITY OF STATE LAW.—Except as 
otherwise provided in this Act, the laws of the State 
in which the injured person resides shall apply to the 
calculation of damages under subsection (d)(3). 
(2) EXTENT
OF
DAMAGES.—Any payment 
under this Act— 
(A) shall be limited to actual compensatory 
damages measured by injuries suffered and in-
terest before settlement or payment of a claim; 
and 
(B) shall not include punitive damages. 
(d) PAYMENT OF CLAIMS.— 
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(1) 
DETERMINATION
AND
PAYMENT
OF 
AMOUNT.— 
(A) IN
GENERAL.—Not later than 180 
days after the date on which a claim is sub-
mitted under this Act, the Director shall deter-
mine and fix the amount, if any, to be paid for 
the claim. 
(B) PARAMETERS OF DETERMINATION.— 
In determining and settling a claim under this 
Act, the Director shall determine only— 
(i) whether the claimant is an injured 
person; 
(ii) whether the injury that is the sub-
ject of the claim resulted from the unau-
thorized use, disclosure, or dissemination 
of personal identifying information that 
was included in the data described in sec-
tion 3(2)(A); 
(iii) the amount, if any, to be allowed 
and paid to the injured person under this 
Act. 
(C) 
OTHER
PAYMENTS
OR
SETTLE-
MENTS.—In determining the amount of, and 
paying, a claim under this Act, to prevent re-
covery by a claimant in excess of actual com-
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