I 
108TH CONGRESS 
2D SESSION 
H. R. 4032
To amend title 38, United States Code, to provide additional safeguards 
for Department of Veterans Affairs benefit recipients who have fidu-
ciaries for receipt and management of benefit payments, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 25, 2004
Mrs. DAVIS of California (for herself, Mr. MICHAUD, Mr. EVANS, Mr. FILNER, 
Ms. CORRINE BROWN of Florida, Mr. RODRIGUEZ, Ms. HOOLEY of Or-
egon, Mr. STRICKLAND, Mr. GRIJALVA, Mr. FRANK of Massachusetts, 
Mr. BISHOP of Georgia, Mr. HOLDEN, Mr. BRADY of Pennsylvania, Mrs. 
NAPOLITANO, and Mr. CHANDLER) introduced the following bill; which 
was referred to the Committee on Veterans’ Affairs 
A BILL 
To amend title 38, United States Code, to provide additional 
safeguards for Department of Veterans Affairs benefit 
recipients who have fiduciaries for receipt and manage-
ment of benefit payments, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Veterans Fiduciary 
Act of 2004’’.
SEC. 2. DEFINITION OF FIDUCIARY. 
(a) IN GENERAL.—(1) Chapter 55 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing 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 claim-
ant’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 beneficiary.’’. 
(2) The table of sections at the beginning of such 
chapter 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 
services’’; 
(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 
‘‘guardian, curator,’’ and all that follows through ‘‘bene-
ficiary,’’ and inserting ‘‘fiduciary (as defined in section 
5506 of this title) for the benefit of a minor, incompetent, 
or other beneficiary under laws administered by the Sec-
retary,’’. 
SEC. 3. INVESTIGATION AND QUALIFICATION OF FIDU-
CIARIES. 
(a) IN GENERAL.—Chapter 55 of title 38, United 
States Code, as amended by section 2, is further amended 
by adding at the end the following new section: 
‘‘§ 5507. Investigation and qualification of fiduciaries 
‘‘(a) Any certification of a person for payment of ben-
efits 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 investigation by the Secretary of the 
fitness of that person to serve as fiduciary for that 
beneficiary, such investigation—
‘‘(A) to be conducted in advance of such 
certification; and 
‘‘(B) to the extent practicable, to include a 
face-to-face interview with such person; 
‘‘(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 investigation of any person under 
subsection (a), the Secretary shall request information 
concerning whether that person has been convicted of any 
offense under Federal or State law which resulted in im-
prisonment for more than one year. If that person has 
been convicted of such an offense, the Secretary may cer-
tify the person as a fiduciary only if the Secretary makes 
a specific finding that the person has been rehabilitated 
and is the most appropriate person to act as fiduciary for 
the beneficiary concerned under the circumstances.