IB 
Union Calendar No. 422 
108TH CONGRESS 
2D SESSION 
H. R. 4658 
[Report No. 108–683] 
To amend the Servicemembers Civil Relief Act to make certain improvements 
and technical corrections to that Act. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 23, 2004 
Mr. SMITH of New Jersey (for himself and Mr. EVANS) introduced the 
following bill; which was referred to the Committee on Veterans’ Affairs 
SEPTEMBER 13, 2004 
Additional sponsors: Mr. MICHAUD, Mrs. DAVIS of California, Mr. BRADY of 
Pennsylvania, Mr. STRICKLAND, Mr. HOLDEN, Mr. VITTER, Mr. FILNER, 
Mr. GUTIERREZ, Ms. CORRINE BROWN of Florida, Mr. RYAN of Ohio, 
Ms. HERSETH, and Ms. BORDALLO 
SEPTEMBER 13, 2004 
Reported with amendments, 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 23, 2004] 
A BILL 
To amend the Servicemembers Civil Relief Act to make 
certain improvements and technical corrections to that Act. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Servicemembers and Veterans Legal Protections Act of 
2004’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT 
Sec. 101. Clarification of meaning of ‘‘judgment’’ as used in the Act. 
Sec. 102. Requirements relating to waiver of rights under the Act. 
Sec. 103. Right of servicemember plaintiffs to request stay of civil proceedings. 
Sec. 104. Termination of leases. 
Sec. 105. Prevention of double taxation of certain servicemembers. 
TITLE II—EMPLOYMENT AND REEMPLOYMENT RIGHTS 
Subtitle A—Extension of Health Care Coverage 
Sec. 201. Two-year period of continuation of employer-sponsored health care cov-
erage. 
Sec. 202. Reinstatement of reporting requirements. 
Subtitle B—Other Matters 
Sec. 211. Requirement for employers to provide notice of rights and duties under 
USERRA. 
Sec. 212. Demonstration project for referral of USERRA claims against Federal 
agencies to the Office of Special Counsel. 
TITLE III—MATTERS RELATING TO FIDUCIARIES 
Sec. 301. Definition of fiduciary. 
Sec. 302. Inquiry, investigations, and qualification of fiduciaries. 
Sec. 303. Misuse of benefits by fiduciaries. 
Sec. 304. Additional protections for beneficiaries with fiduciaries. 
Sec. 305. Annual report. 
Sec. 306. Annual adjustment in benefits thresholds. 
Sec. 307. Effective dates. 
TITLE IV—OTHER MATTERS 
Sec. 401. Inventory of medical waste management activities at Department 
health-care facilities. 
Sec. 402. Care for newborn children of veterans receiving maternity care. 
Sec. 403. Technical amendments to education program provisions.
TITLE 
I—IMPROVEMENTS 
TO 
SERVICEMEMBERS CIVIL RE-
LIEF ACT 
SEC. 101. CLARIFICATION OF MEANING OF ‘‘JUDGMENT’’ AS 
USED IN THE ACT. 
Section 101 of the Servicemembers Civil Relief Act (50 
U.S.C. App. 511) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(9) JUDGMENT.—The term ‘judgment’ means 
any judgment, decree, order, or ruling, final or tem-
porary.’’. 
SEC. 102. REQUIREMENTS RELATING TO WAIVER OF RIGHTS 
UNDER THE ACT. 
Section 107 of the Servicemembers Civil Relief Act (50 
U.S.C. App. 517) is amended— 
(1) In subsection (a), by inserting after the first 
sentence the following new sentence: ‘‘Any such waiver 
that applies to an action listed in subsection (b) of 
this section is effective only if it is in writing and is 
executed as an instrument separate from the obliga-
tion or liability to which it applies.’’; 
(2) by redesignating subsection (c) as subsection 
(d); and 
(3) by inserting after subsection (b) the following 
new subsection (c):
‘‘(c) PROMINENT DISPLAY
OF CERTAIN CONTRACT 
RIGHTS WAIVERS.—Any waiver in writing of a right or 
protection provided by this Act that applies to a contract, 
lease, or similar legal instrument must be in at least 12 
point type.’’. 
SEC. 103. RIGHT OF SERVICEMEMBER PLAINTIFFS TO RE-
QUEST STAY OF CIVIL PROCEEDINGS. 
Section 202(a) of the Servicemembers Civil Relief Act 
(50 U.S.C. App. 522(a)) is amended by inserting ‘‘plaintiff 
or’’ before ‘‘defendant’’. 
SEC. 104. TERMINATION OF LEASES. 
(a) JOINT LEASES.—Subsection (a) of section 305 of 
the Servicemembers Civil Relief Act (50 U.S.C. App. 535) 
is amended to read as follows: 
‘‘(a) TERMINATION BY LESSEE.— 
‘‘(1) IN
GENERAL.—The lessee on a lease de-
scribed in subsection (b) may, at the lessee’s option, 
terminate the lease at any time after— 
‘‘(A) the lessee’s entry into military service; 
or 
‘‘(B) the date of the lessee’s military orders 
described in paragraph (1)(B) or (2)(B) of sub-
section (b), as the case may be. 
‘‘(2) JOINT LEASES.—A lessee’s termination of a 
lease pursuant to this subsection shall terminate any
obligation a dependent of the lessee may have under 
the lease.’’. 
(b) MOTOR VEHICLES LEASES.— 
(1) APPLICABILITY
TO
PCS
ORDERS
FROM 
STATES OUTSIDE CONUS.—Subparagraph (B) of sub-
section (b)(2) of such section is amended by striking 
‘‘military orders for’’ and all that follows through ‘‘or 
to deploy’’ and inserting ‘‘military orders— 
‘‘(i) for a change of permanent sta-
tion— 
‘‘(I) from a location in the conti-
nental United States to a location out-
side the continental United States; or 
‘‘(II) from a location in a State 
outside the continental United States 
to any location outside that State; or 
‘‘(ii) to deploy’’. 
(2) 
DEFINITIONS.—Such 
section 
is 
further 
amended by adding at the end the following new sub-
section: 
‘‘(i) DEFINITIONS.— 
‘‘(1) MILITARY ORDERS.—The term ‘military or-
ders’, with respect to a servicemember, means official 
military orders, or any notification, certification, or 
verification from the servicemember’s commanding of-
ficer, with respect to the servicemember’s current or 
future military duty status. 
‘‘(2) CONUS.—The term ‘continental United 
States’ means the 48 contiguous States and the Dis-
trict of Columbia.’’. 
(c) COVERAGE OF INDIVIDUAL DEPLOYMENTS.—Sub-
section (b) of such section is further amended in paragraph 
(1)(B) and paragraph (2)(B)(ii) (as designated by sub-
section (b) of this section) by inserting ‘‘, or as an indi-
vidual in support of a military operation,’’ after ‘‘deploy 
with a military unit’’. 
SEC. 105. PREVENTION OF DOUBLE TAXATION OF CERTAIN 
SERVICEMEMBERS. 
Section 511(c) of the Servicemembers Civil Relief Act 
(50 U.S.C. App. 571(c)) is amended by adding at the end 
the following new paragraph: 
‘‘(5) USE, EXCISE, OR SIMILAR TAXES.—A tax 
jurisdiction may not impose a use, excise, or similar 
tax on the personal property of a nonresident 
servicemember when the laws of the tax jurisdiction 
fail to provide a credit against such taxes for sales, 
use, excise, or similar taxes previously paid on the 
same property to another tax jurisdiction.’’.
TITLE II—EMPLOYMENT AND 
REEMPLOYMENT RIGHTS 
Subtitle A—Extension of Health 
Care Coverage 
SEC. 201. TWO-YEAR PERIOD OF CONTINUATION OF EM-
PLOYER-SPONSORED 
HEALTH 
CARE 
COV-
ERAGE. 
(a) IMPROVEMENT IN PERIOD OF COVERAGE.—Sub-
section (a)(1)(A) of section 4317 of title 38, United States 
Code, is amended by striking ‘‘18-month period’’ and in-
serting ‘‘24-month period’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to elections made under such section 
4317 on or after the date of the enactment of this Act. 
SEC. 202. REINSTATEMENT OF REPORTING REQUIREMENTS. 
Section 4332 of title 38, United States Code, is amend-
ed in the matter preceding paragraph (1) by striking ‘‘no 
later than February 1, 1996, and annually thereafter 
through 2000’’ and inserting ‘‘no later than February 1, 
2005, and annually thereafter’’.
Subtitle B—Other Matters 
SEC. 211. REQUIREMENT FOR EMPLOYERS TO PROVIDE NO-
TICE 
OF 
RIGHTS 
AND 
DUTIES 
UNDER 
USERRA. 
(a) NOTICE.—Chapter 43 of title 38, United States 
Code, is amended by adding at the end the following new 
section: 
‘‘§ 4334. Notice of rights and duties 
‘‘(a) REQUIREMENT TO PROVIDE NOTICE.—Each em-
ployer shall provide to persons entitled to rights and bene-
fits under this chapter a notice of the rights, benefits, and 
obligations of such persons and such employers under this 
chapter. The requirement for the provision of notice under 
this section may be met by the posting of the notice where 
employers customarily place notices for employees. 
‘‘(b) CONTENT OF NOTICE.—The Secretary shall pro-
vide to employers the text of the notice to be provided under 
this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘4334. Notice of rights and duties.’’. 
(c) IMPLEMENTATION.—(1) Not later than the date 
that is 90 days after the date of the enactment of this Act, 
the Secretary of Labor shall make available to employers
the notice required under section 4334 of title 38, United 
States Code, as added by subsection (a). 
(2) The amendments made by this section shall apply 
to employers under chapter 43 of such title on and after 
the first date referred to in paragraph (1). 
SEC. 212. DEMONSTRATION PROJECT FOR REFERRAL OF 
USERRA CLAIMS AGAINST FEDERAL AGEN-
CIES TO THE OFFICE OF SPECIAL COUNSEL. 
(a) ESTABLISHMENT OF PROJECT.—The Secretary of 
Labor and the Office of Special Counsel shall carry out a 
demonstration project under which certain claims against 
Federal executive agencies under the Uniformed Services 
Employment and Reemployment Rights Act under chapter 
43 of title 38, United States Code, are referred to, or other-
wise received by, the Office of Special Counsel for assist-
ance, including investigation and resolution of the claim 
as well as enforcement of rights with respect to the claim. 
(b) REFERRAL OF ALL PROHIBITED PERSONNEL AC-
TION CLAIMS TO THE OFFICE OF SPECIAL COUNSEL.—(1) 
Under the demonstration project, the Office of Special 
Counsel shall receive and investigate all claims under the 
Uniformed Services Employment and Reemployment 
Rights Act with respect to Federal executive agencies in 
cases where the Office of Special Counsel has jurisdiction
over related claims pursuant to section 1212 of title 5, 
United States Code. 
(2) For purposes of paragraph (1), a related claim is 
a claim involving the same Federal executive agency and 
the same or similar factual allegations or legal issues as 
those being pursued under a claim under the Uniformed 
Services Employment and Reemployment Rights Act. 
(c) REFERRAL OF OTHER CLAIMS AGAINST FEDERAL 
EXECUTIVE
AGENCIES.—(1) Under the demonstration 
project, the Secretary— 
(A) shall refer to the Office of Special Counsel all 
claims described in paragraph (2) made during the 
period of the demonstration project; and 
(B) may refer any claim described in paragraph 
(2) filed before the demonstration project that is pend-
ing before the Secretary at the beginning of the dem-
onstration project. 
(2) A claim referred to in paragraph (1) is a claim 
under chapter 43 of title 38, United States Code, against 
a Federal executive agency by a claimant with a social se-
curity account number with an odd number as its terminal 
digit, or, in the case of a claim that does not contain a 
social security account number, a case number assigned to 
the claim with an odd number as its terminal digit.
(d) ADMINISTRATION OF DEMONSTRATION PROJECT.— 
(1) The Office of Special Counsel shall administer the dem-
onstration project. The Secretary shall cooperate with the 
Office of Special Counsel in carrying out the demonstration 
project. 
(2) In the case of any claim referred, or otherwise re-
ceived by, to the Office of Special Counsel under the dem-
onstration project, any reference to the ‘‘Secretary’’ in sec-
tions 4321, 4322, and 4326 of title 38, United States Code, 
is deemed a reference to the ‘‘Office of Special Counsel’’. 
(3) In the case of any claim referred to, or otherwise 
received by, the Office of Special Counsel under the dem-
onstration project, the Office of Special Counsel shall retain 
administrative jurisdiction over the claim. 
(e) PERIOD OF PROJECT.—The demonstration project 
shall be carried out during the period beginning on the date 
that is 60 days after the date of the enactment of this Act, 
and ending on September 30, 2007. 
(f) EVALUATIONS AND REPORT.—(1) The Comptroller 
General of the United States shall conduct periodic evalua-
tions of the demonstration project under this section. 
(2) Not later than April 1, 2007, the Comptroller Gen-
eral shall submit to Congress a report on the evaluations 
conducted under paragraph (1). The report shall include 
the following information and recommendations:
(A) A description of the operation and results of 
the demonstration program, including— 
(i) the number of claims described in sub-
section (c) referred to, or otherwise received by, 
the Office of Special Counsel and the number of 
such claims referred to the Secretary of Labor, 
and 
(ii) for each Federal executive agency, the 
number of claims resolved, the type of corrective 
action obtained, the period of time for final reso-
lution of the claim, and the results obtained. 
(B) An assessment of whether referral to the Of-
fice of Special Counsel of claims under the demonstra-
tion project— 
(i) improved services to servicemembers and 
veterans; or 
(ii) significantly reduced or eliminated du-
plication of effort and unintended delays in re-
solving 
meritorious 
claims 
of 
those 
servicemembers and veterans. 
(C) An assessment of the feasibility and advis-
ability of referring all claims under chapter 43 of 
title 38, United States Code, against Federal executive 
agencies to the Office of Special Counsel for investiga-
tion and resolution.
(D) Such other recommendations for administra-
tive action or legislation as the Comptroller General 
determines appropriate. 
(g) DEFINITIONS.—In this section: 
(1) The term ‘‘Office of Special Counsel’’ means 
the Office of Special Counsel established by section 
1211 of title 5, United States Code. 
(2) The term ‘‘Secretary’’ means the Secretary of 
Labor. 
(3) The term ‘‘Federal executive agency’’ has the 
meaning given that term in section 4303(5) of title 
38, United States Code. 
TITLE III—MATTERS RELATING 
TO FIDUCIARIES 
SEC. 301. DEFINITION OF FIDUCIARY. 
(a) IN GENERAL.—(1) Chapter 55 of title 38, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 5506. Definition of ‘fiduciary’ 
‘‘For purposes of this chapter and chapter 61 of this 
title, the term ‘fiduciary’ means— 
‘‘(1) a person who is a guardian, curator, con-
servator, committee, or person legally vested with the 
responsibility or care of a claimant (or a claimant’s
estate) or of a beneficiary (or a beneficiary’s estate); 
or 
‘‘(2) any other person having been appointed in 
a representative capacity to receive money paid under 
any of the laws administered by the Secretary for the 
use and benefit of a minor, incompetent, or other ben-
eficiary.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item: 
‘‘5506. Definition of ‘fiduciary’.’’. 
(b) CONFORMING AMENDMENTS TO SECTION 5502.— 
Section 5502 of such title is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘other 
person’’ and inserting ‘‘other fiduciary’’; and 
(B) in the second sentence of paragraph (2), 
by inserting ‘‘for benefits under this title’’ after 
‘‘in connection with rendering fiduciary serv-
ices’’; 
(2) in subsection (b), by striking ‘‘guardian, cu-
rator, conservator, or other person’’ each place it ap-
pears and inserting ‘‘fiduciary’’; and 
(3) in subsection (d), by striking ‘‘guardian, cu-
rator, or conservator’’ and inserting ‘‘fiduciary’’. 
(c) CONFORMING AMENDMENT TO SECTION 6101.— 
Section 6101(a) of such title is amended by striking ‘‘guard-
ian, curator,’’ and all that follows through ‘‘beneficiary,’’ 
and inserting ‘‘fiduciary (as defined in section 5506 of this 
title) for the benefit of a minor, incompetent, or other bene-
ficiary under laws administered by the Secretary,’’. 
SEC. 302. INQUIRY, INVESTIGATIONS, AND QUALIFICATION 
OF FIDUCIARIES. 
(a) IN GENERAL.—Chapter 55 of title 38, United 
States Code, as amended by section 301(a)(1), is further 
amended by adding at the end the following new section: 
‘‘§ 5507. Inquiry, investigations, and qualification of 
fiduciaries 
‘‘(a) Any certification of a person for payment of bene-
fits of a beneficiary to that person as such beneficiary’s fi-
duciary 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, such inquiry or investigation— 
‘‘(A) to be conducted in advance of such cer-
tification; 
‘‘(B) to the extent practicable, to include a 
face-to-face interview with such person; and 
‘‘(C) to the extent practicable, to include a 
copy of a credit report for such person issued
within one year of the date of the proposed ap-
pointment; 
‘‘(2) adequate evidence that certification of that 
person as fiduciary for that beneficiary is in the in-
terest of such beneficiary (as determined by the Sec-
retary under regulations); and 
‘‘(3) the furnishing of any bond that may be re-
quired by the Secretary. 
‘‘(b) As part of any inquiry or investigation of any 
person under subsection (a), the Secretary shall request in-
formation concerning whether that person has been con-
victed of any offense under Federal or State law which re-
sulted in imprisonment for more than one year. If that per-
son has been convicted of such an offense, the Secretary may 
certify the person as a fiduciary only if the Secretary makes 
a specific finding that the person has been rehabilitated and 
is an appropriate person to act as fiduciary for the bene-
ficiary concerned under the circumstances. 
‘‘(c)(1) In the case of a proposed fiduciary described 
in paragraph (2), the Secretary, in conducting an inquiry 
or investigation under subsection (a)(1), may carry out 
such inquiry or investigation on an expedited basis that 
may include waiver of any specific requirement relating to 
such inquiry or investigation, including the otherwise ap-
plicable provisions of subparagraphs (A), (B), and (C) of
such subsection. Any such inquiry or investigation carried 
out on such an expedited basis shall be carried out under 
regulations prescribed for purposes of this section. 
‘‘(2) Paragraph (1) applies with respect to a proposed 
fiduciary who is— 
‘‘(A) the parent (natural, adopted, or stepparent) 
of a beneficiary who is a minor; 
‘‘(B) the spouse or parent of an incompetent ben-
eficiary; 
‘‘(C) a person who has been appointed a fidu-
ciary of the beneficiary by a court of competent juris-
diction; or 
‘‘(D) being appointed to manage an estate where 
the annual amount of veterans benefits to be managed 
by the proposed fiduciary does not exceed $3600, as 
adjusted pursuant to section 5312 of this title. 
‘‘(d) TEMPORARY FIDUCIARIES.—When in the opinion 
of the Secretary, a temporary fiduciary is needed in order 
to protect the assets of the beneficiary while a determination 
of incompetency is being made or appealed or a fiduciary 
is appealing a determination of misuse, the Secretary may 
appoint one or more temporary fiduciaries for a period not 
to exceed 120 days. If a final decision has not been made 
within 120 days, the Secretary may not continue the ap-
pointment of the fiduciary without obtaining a court order
for appointment of a guardian, conservator, or other fidu-
ciary under the authority provided in section 5502(b) of 
this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding after 
the item added by section 301(a)(2) the following new item: 
‘‘5507. Inquiry, investigations, and qualification of fiduciaries.’’. 
SEC. 303. MISUSE OF BENEFITS BY FIDUCIARIES. 
(a) PROTECTION OF VETERANS BENEFITS WHEN AD-
MINISTERED BY FIDUCIARIES.—(1) Chapter 61 of title 38, 
United States Code, is amended by adding at the end the 
following new sections: 
‘‘§ 6106. Misuse of benefits by fiduciaries 
‘‘(a) FEE FORFEITURE IN CASE OF BENEFIT MISUSE 
BY FIDUCIARIES.—A fiduciary may not collect a fee from 
a beneficiary for any month with respect to which the Sec-
retary or a court of competent jurisdiction has determined 
that the fiduciary misused all or part of the individual’s 
benefit, and any amount so collected by the fiduciary as 
a fee for such month shall be treated as a misused part of 
the individual’s benefit. 
‘‘(b) LIABILITY OF FIDUCIARIES FOR MISUSED BENE-
FITS.—(1) If the Secretary or a court of competent jurisdic-
tion determines that a fiduciary that is not a Federal, 
State, or local government agency has misused all or part 
of a beneficiary’s benefit that was paid to such fiduciary,
the fiduciary shall be liable for the amount misused, and 
such amount (to the extent not repaid by the fiduciary) 
shall be treated as an erroneous payment of benefits under 
this title to the fiduciary for purposes of laws pertaining 
to the recovery of overpayments. The amount of such over-
payment shall constitute a liability of such fiduciary to the 
United States and may be recovered in the same manner 
as any other debt due the United States. Subject to para-
graph (2), upon recovering all or any part of such amount, 
the Secretary shall pay an amount equal to the recovered 
amount to such beneficiary or such beneficiary’s successor 
fiduciary. 
‘‘(2) The total of the amounts paid to a beneficiary 
(or a beneficiary’s successor fiduciary) under paragraph (1) 
and under section 6107 of this title may not exceed the total 
benefit amount misused by the fiduciary with respect to 
that beneficiary. 
‘‘(c) MISUSE OF BENEFITS DEFINED.—For purposes 
of this chapter, misuse of benefits by a fiduciary occurs in 
any case in which the fiduciary receives payment, under 
any of laws administered by the Secretary, for the use and 
benefit of a beneficiary and uses such payment, or any part 
thereof, for a use other than for the use and benefit of such 
beneficiary or that beneficiary’s dependents. Retention by 
a fiduciary of an amount of a benefit payment as a fidu-
ciary fee or commission, or as attorney’s fees (including ex-
penses) and court costs, if authorized by the Secretary or 
a court of competent jurisdiction, shall be considered to be 
for the use or benefit of such beneficiary. 
‘‘(d) REGULATIONS.—The Secretary may prescribe by 
regulation the meaning of the term ‘use and benefit’ for pur-
poses of this section. 
‘‘(e) FINALITY OF DETERMINATIONS.—A determina-
tion by the Secretary that a fiduciary has misused benefits 
is a decision of the Secretary for purposes of section 511(a) 
of this title. 
‘‘§ 6107. Reissuance of benefits 
‘‘(a) NEGLIGENT FAILURE BY SECRETARY.—(1) In 
any case in which the negligent failure of the Secretary to 
investigate or monitor a fiduciary results in misuse of bene-
fits by the fiduciary, the Secretary shall pay to the bene-
ficiary or the beneficiary’s successor fiduciary an amount 
equal to the amount of benefits that were so misused. 
‘‘(2) There shall be considered to have been a negligent 
failure by the Secretary to investigate and monitor a fidu-
ciary in the following cases: 
‘‘(A) A case in which the Secretary failed to 
timely review a fiduciary’s accounting.
‘‘(B) A case in which the Secretary was notified 
of allegations of misuse, but failed to act in a timely 
manner to terminate the fiduciary. 
‘‘(C) In any other case in which actual neg-
ligence is shown. 
‘‘(b) REISSUANCE OF MISUSED BENEFITS IN OTHER 
CASES.—(1) In any case in which a fiduciary described 
in paragraph (2) misuses all or part of an individual’s ben-
efit paid to such fiduciary, the Secretary shall pay to the 
beneficiary or the beneficiary’s successor fiduciary an 
amount equal to the amount of such benefit so misused. 
‘‘(2) Paragraph (1) applies to a fiduciary that— 
‘‘(A) is not an individual; or 
‘‘(B) is an individual who, for any month dur-
ing a period when misuse occurs, serves 10 or more 
individuals who are beneficiaries under this title. 
‘‘(c) RECOUPMENT OF AMOUNTS REISSUED.—In any 
case in which the Secretary reissues a benefit payment (in 
whole or in part) under subsection (a) or (b), the Secretary 
shall make a good faith effort to obtain recoupment from 
the fiduciary to whom the payment was originally made.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new items: 
‘‘6106. Misuse of benefits by fiduciaries. 
‘‘6107. Reissuance of benefits.’’.
SEC. 304. ADDITIONAL PROTECTIONS FOR BENEFICIARIES 
WITH FIDUCIARIES. 
(a) ONSITE
REVIEWS
AND
REQUIRED
ACCOUNT-
INGS.—(1) Chapter 55 of title 38, United States Code, as 
amended by section 302(a), is further amended by adding 
at the end the following new sections: 
‘‘§ 5508. Periodic onsite reviews of institutional fidu-
ciaries 
‘‘In addition to such other reviews of fiduciaries as the 
Secretary may otherwise conduct, the Secretary shall pro-
vide for the periodic onsite review of any person or agency 
located in the United States that receives the benefits pay-
able under laws administered by the Secretary to another 
individual pursuant to the appointment of such person or 
agency as a fiduciary under section 5502(a)(1) of this title 
in any case in which the fiduciary is serving in that capac-
ity with respect to more than 20 beneficiaries and the total 
annual amount of such benefits exceeds $50,000, as adjusted 
pursuant to section 5312 of this title. 
‘‘§ 5509. Authority to redirect delivery of benefit pay-
ments when a fiduciary fails to provide 
required accounting 
‘‘(a) REQUIRED REPORTS AND ACCOUNTINGS.—The 
Secretary may require a fiduciary to file a report or ac-
counting pursuant to regulations prescribed by the Sec-
retary.
‘‘(b) ACTIONS UPON FAILURE TO FILE.—In any case 
in which a fiduciary fails to submit a report or accounting 
required by the Secretary under subsection (a), the Sec-
retary may, after furnishing notice to such fiduciary and 
the beneficiary entitled to such payment of benefits, require 
that such fiduciary appear in person at a regional office 
of the Department serving the area in which the beneficiary 
resides in order to receive such payments.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by adding after the item added by section 
302(b) the following new items: 
‘‘5508. Periodic onsite reviews of institutional fiduciaries. 
‘‘5509. Authority to redirect delivery of benefit payments when a fiduciary fails 
to provide required accounting.’’. 
(b) CIVIL MONETARY PENALTIES; JUDICIAL ORDERS 
OF RESTITUTION.—(1) Chapter 61 of title 38, United States 
Code, as amended by section 303(a), is further amended by 
adding at the end the following new sections: 
‘‘§ 6108. Civil monetary penalties 
‘‘(a) PENALTY FOR CONVERSION.—Any person (in-
cluding an organization, agency, or other entity) who, hav-
ing received, while acting in the capacity of a fiduciary 
pursuant to section 5502 of this title, a payment under a 
law administered by the Secretary for the use and benefit 
of another individual, converts such payment, or any part 
thereof, to a use that such person knows or should know 
is other than for the use and benefit of such other individual
shall be subject to, in addition to any other penalty that 
may be prescribed by law, a civil monetary penalty assessed 
by the Secretary of not more than $5,000 for each such con-
version. 
‘‘(b) PENALTY IN LIEU OF DAMAGES.—Any person 
who makes a conversion of a payment described in sub-
section (a) and is subject to a civil monetary penalty under 
that subsection by reason of such conversion shall also be 
subject to an assessment by the Secretary, in lieu of dam-
ages sustained by the United States resulting from the con-
version, of not more than twice the amount of any payments 
so converted. 
‘‘(c) COSTS OF RECOVERY.—From amounts collected 
under this section, the amount necessary to recoup the De-
partment’s costs of such collection shall be credited to appro-
priations currently available for the same purpose as the 
appropriation that incurred those costs, to remain available 
until expended. 
‘‘§ 6109. Authority for judicial orders of restitution 
‘‘(a) Any Federal court, when sentencing a defendant 
convicted of an offense arising from the misuse of benefits 
under this title, may order, in addition to or in lieu of 
any other penalty authorized by law, that the defendant 
make restitution to the Department.
‘‘(b) Sections 3612, 3663, and 3664 of title 18 shall 
apply with respect to the issuance and enforcement of orders 
of restitution under subsection (a). In so applying those sec-
tions, the Department shall be considered the victim. 
‘‘(c) If the court does not order restitution, or orders 
only partial restitution, under subsection (a), the court 
shall state on the record the reasons therefor. 
‘‘(d)(1) Except as provided in paragraph (2), amounts 
received or recovered by the Secretary pursuant to an order 
of restitution under subsection (a), to the extent and in the 
amounts provided in advance in appropriations Acts, shall 
be available to defray expenses incurred by the Office of the 
Inspector General for the investigation of fiduciaries under 
this title. 
‘‘(2) Paragraph (1) shall not apply with respect to 
amounts received in connection with misuse by a fiduciary 
of funds paid as benefits under laws administered by the 
Secretary. Such amounts shall be paid to the individual 
whose benefits were misused unless the Secretary has pre-
viously reissued the misused benefits, in which case the 
amounts shall be treated in the same manner as overpay-
ments recouped by the Secretary and shall be deposited to 
the credit of the applicable revolving fund, trust fund, or 
appropriation.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding after the item added by section 
303(b) the following new items: 
‘‘6108. Civil monetary penalties. 
‘‘6109. Authority for judicial orders of restitution.’’. 
SEC. 305. ANNUAL REPORT. 
(a) IN GENERAL.—Chapter 55 of title 38, United 
States Code, as amended by section 304(a)(1), is further 
amended by adding at the end the following new section: 
‘‘§ 5510. Annual report 
‘‘The Secretary shall include in the Annual Benefits 
Report of the Veterans Benefits Administration or the Sec-
retary’s Annual Performance and Accountability Report 
information concerning fiduciaries who have been ap-
pointed to receive payments for beneficiaries of the Depart-
ment. As part of such information, the Secretary shall sepa-
rately set forth the following: 
‘‘(1) The number of beneficiaries in each cat-
egory (veteran, surviving spouse, child, adult disabled 
child, or parent). 
‘‘(2) The types of benefit being paid (compensa-
tion, pension, dependency and indemnity compensa-
tion, death pension or benefits payable to a disabled 
child under chapter 18 of this title).
‘‘(3) The total annual amounts and average an-
nual amounts of benefits paid to fiduciaries for each 
category and type of benefit. 
‘‘(4) The number of fiduciaries who are the 
(spouse, parent, legal custodian, court-appointed fidu-
ciary, institutional fiduciary, custodian in fact, and 
supervised direct payment). 
‘‘(5) The number of cases in which the fiduciary 
was changed by the Secretary because of a finding 
that benefits had been misused. 
‘‘(6) How such cases of misuse of benefits were 
addressed by the Secretary. 
‘‘(7) The final disposition of such cases of misuse 
of benefits, including the number and dollar amount 
of any civil or criminal penalties imposed. 
‘‘(8) Such other information as the Secretary 
considers appropriate.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding after 
the items added by the amendment made by section 
304(a)(2) the following new item: 
‘‘5510. Annual report.’’. 
SEC. 306. ANNUAL ADJUSTMENT IN BENEFITS THRESH-
OLDS. 
Section 5312(b)(1) of title 38, United States Code, is 
amended by inserting ‘‘and the annual benefit amount limi-
tations under sections 5507(c)(2)(D) and 5508 of this title,’’ 
after ‘‘(d)(3) of such section,’’. 
SEC. 307. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as otherwise provided, this 
title and the amendments made by this title shall take effect 
on the first day of the seventh month beginning after the 
date of the enactment of this Act. 
(b) SPECIAL RULES.—(1) Section 5510 of title 38, 
United States Code, as added by section 305(a), shall take 
effect on the date of the enactment of this Act. 
(2) Sections 6106 and 6107 of title 38, United States 
Code, as added by section 303(a), shall apply with respect 
to any determinations by the Secretary of Veterans Affairs 
made after the date of the enactment of this Act of misuse 
of funds by a fiduciary. 
TITLE IV—OTHER MATTERS 
SEC. 401. INVENTORY OF MEDICAL WASTE MANAGEMENT 
ACTIVITIES AT DEPARTMENT HEALTH-CARE 
FACILITIES. 
(a) INVENTORY.—The Secretary of Veterans Affairs 
shall establish and maintain a national inventory of med-
ical waste management activities in the health-care facili-
ties of the Department of Veterans Affairs. The inventory 
shall include the following:
(1) A statement of the current national policy of 
the Department on managing and disposing of med-
ical waste, including regulated medical waste in all 
its forms. 
(2) A description of the program of each geo-
graphic service area of the Department to manage 
and dispose of medical waste, including general med-
ical waste and regulated medical waste, with a de-
scription of the primary methods used in those pro-
grams and the associated costs of those programs, 
with cost information shown separately for in-house 
costs (including full-time equivalent employees) and 
contract costs. 
(b) REPORT.—Not later than April 15, 2005, the Sec-
retary of Veterans Affairs shall submit to the Committees 
on Veterans’ Affairs of the Senate and House of Representa-
tives a report on medical waste management activities in 
the facilities of the Department of Veterans Affairs. The re-
port shall include the following: 
(1) The inventory established under subsection 
(a), including all the matters specified in that sub-
section. 
(2) A listing of each violation of medical waste 
management and disposal regulations reported at any 
health-care facility of the Department over the pre-
ceding five years by any State or Federal agency, 
along with an explanation of any remedial or other 
action taken by the Secretary in response to each such 
reported violation. 
(3) A description of any plans to modernize, con-
solidate, or otherwise improve the management of 
medical waste and disposal programs at health-care 
facilities of the Department, including the projected 
costs associated with such plans and any barriers to 
achieving goals associated with such plans. 
(4) An assessment or evaluation of the available 
methods of disposing of medical waste and identifica-
tion of which of those methods are more desirable 
from an environmental perspective in that they would 
be least likely to result in contamination of air or 
water or otherwise cause future cleanup problems. 
SEC. 402. CARE FOR NEWBORN CHILDREN OF VETERANS 
RECEIVING MATERNITY CARE. 
(a) AUTHORITY
TO
PROVIDE
NEWBORN
INFANT 
CARE.—Subchapter VIII of chapter 17 of title 38, United 
States Code, is amended by adding at the end the following 
new section:
‘‘§ 1786. Care for newborn children of veterans receiv-
ing maternity care 
‘‘(a) AUTHORITY.—Subject to subsections (b) and (c), 
when a female veteran who is enrolled in the health-care 
system established under section 1705 of this title is receiv-
ing maternity care from the Department delivers of a child 
in a Department facility or in a non-Department facility 
under a Department contract the Secretary may furnish 
care to the neonate. 
‘‘(b) CARE IN A DEPARTMENT FACILITY.—In a case 
in which a neonate covered by subsection (a) is born in 
a Department facility, care furnished for the neonate at 
that facility shall be furnished without charge to the veteran 
who delivered of that neonate. 
‘‘(c) CARE IN A NON-DEPARTMENT FACILITY.—In a 
case in which a neonate covered by subsection (a) is born 
in a non-Department facility or is provided care in a non- 
Department facility following birth in a Department facil-
ity and transfer from that facility, the Secretary may pro-
vide for the payment of the cost of care and services for 
the neonate in the same manner, and subject to the same 
limitations, as if such care and services were emergency 
treatment furnished the veteran subject to section 1725 of 
this title, except that— 
‘‘(1) the services for which the Secretary may 
make payment shall be limited to those items and
services for which payment may be made under the 
medicare program under title XVIII of the Social Se-
curity Act for post-natal care furnished to a neonate; 
and 
‘‘(2) the rate of payment for such services may 
not exceed the payment rates applicable to those items 
and services under the medicare program under such 
title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 1784 the following new item: 
‘‘1786. Care for newborn children of veterans receiving maternity care.’’. 
SEC. 403. TECHNICAL AMENDMENTS TO EDUCATION PRO-
GRAM PROVISIONS. 
(a) INAPPLICABILITY OF WAGE REQUIREMENTS FOR 
ON-JOB TRAINING PROGRAMS LEADING TO SELF-EMPLOY-
MENT.—(1) Section 3677(b) is amended by adding at the 
end the following new paragraph: 
‘‘(3) Notwithstanding paragraph (1)(A) and sub-
section (c)(8), no wages shall be required to be paid an eligi-
ble person or veteran by a training establishment described 
in section 3452(e)(2) of this title.’’. 
(2) Section 3452(e), as amended by section 301 of the 
Veterans Benefits Act of 2003 (Public Law 108–183; 117 
Stat. 2658), is amended by striking ‘‘An’’ in paragraph (2)
and inserting ‘‘For the period beginning on October 1, 
2005, and ending on September 30, 2010, an’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect as if included in the enactment 
of section 301 of the Veterans Benefits Act of 2003 (Public 
Law 108–183; 117 Stat. 2658). 
Amend the title so as to read: ‘‘A bill to amend the 
Servicemembers Civil Relief Act to make certain improve-
ments and technical corrections to that Act, otherwise to 
improve legal protections provided to reserve component 
members called to active duty, and for other purposes.’’
Union Calendar No. 422 
108TH CONGRESS 
2D SESSION 
H. R. 4658 
[Report No. 108–683] 
A BILL 
To amend the Servicemembers Civil Relief Act to 
make certain improvements and technical correc-
tions to that Act. 
SEPTEMBER 13, 2004 
Reported with amendments, committed to the Committee 
of the Whole House on the State of the Union, and or-
dered to be printed