To establish the Office of Veterans Identity Protection Claims to reimburse injured persons for injuries suffered as a result of the unauthorized use, disclosure, or dissemination of identifying information stolen from the Department of Veterans Affairs, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Identity Protection Act'', 
or the ``VIP Act''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to reimburse injured persons for injuries suffered as a 
        result of the unauthorized use, disclosure, or dissemination of 
        identifying information improperly released by or obtained from 
        the Department of Veterans Affairs; and
            (2) to provide for the expeditious consideration and 
        settlement of claims for those injuries.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Director.--The term ``Director'' means the Director of 
        the Office of Veterans Identity Protection Claims.
            (2) Injured person.--The term ``injured person'' means an 
        individual--
                    (A) whose name or other personal identifying 
                information is part of data of the Department of 
                Veterans Affairs that--
                            (i) was stolen from the home of an employee 
                        of the Department of Veterans Affairs on or 
                        around May 3, 2006;
                            (ii) was reported missing from the 
                        Birmingham VA Medical Center on or around 
                        January 22, 2007; or
                            (iii) is otherwise compromised as a result 
                        of a security breach, including any action 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 dissemination of 
                personal identifying information that was included in 
                data described in subparagraph (A).
            (3) Office.--The term ``Office'' means the Office of 
        Veterans Identity Protection Claims established 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, process, and pay claims in 
accordance with this Act. Such office shall be known as the Office of 
Veterans Identity Protection Claims.
    (b) Director.--Not later than 30 days after the enactment of this 
Act, the President shall appoint a director 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 settle 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, without regard to the provisions 
        of title 5, United States Code, governing appointments in 
        competitive service; and
            (4) upon the request of the Director, may request 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 use, disclosure, or 
        dissemination of personal identifying information that was 
        included in the data described 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 
requirements 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 interest before 
                settlement or payment of a claim; and
                    (B) shall not include punitive damages.
    (d) Payment of Claims.--
            (1) Determination and payment of amount.--
                    (A) In general.--Not later than 180 days after the 
                date on which a claim is submitted under this Act, the 
                Director shall determine 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 subject 
                        of the claim resulted from the unauthorized 
                        use, disclosure, or dissemination of personal 
                        identifying information that was included in 
                        the data described in section 3(2)(A);
                            (iii) the amount, if any, to be allowed and 
                        paid to the injured person under this Act.
                    (C) Other payments or settlements.--In determining 
                the amount of, and paying, a claim under this Act, to 
                prevent recovery by a claimant in excess of actual 
                compensatory damages, the Director shall reduce the 
                amount to be paid for the claim by an amount that is 
                equal to the total of any payments or settlements of 
                any nature that were paid, or will be paid, to the 
                injured person with respect to the claim.
            (2) Partial payment.--
                    (A) In general.--At the request of a claimant, the 
                Director may make one or more advance or partial 
                payments before the final settlement of a claim, 
                including final settlement on any portion or aspect of 
                a claim that is determined to be severable.
                    (B) Judicial decision.--If a claimant receives a 
                partial payment on a claim under this Act, but further 
                payment on the claim is subsequently denied by the 
                Director, the claimant may--
                            (i) seek judicial review under subsection 
                        (i); and
                            (ii) keep any partial payment that the 
                        claimant received, unless the Director 
                        determines that the claimant--
                                    (I) was not eligible to receive the 
                                reimbursement; or
                                    (II) fraudulently procured the 
                                reimbursement.
            (3) Allowable damages.--A claim that is paid under this Act 
        may include otherwise uncompensated damages for loss of 
        property, business loss, or financial loss resulting from the 
        unauthorized use, disclosure, or dissemination of personal 
        identifying information that was included in the data described 
        in section 3(2)(A).
    (e) Acceptance of Award.--The acceptance by a claimant of any 
payment under this Act, except an advance or partial payment made under 
subsection (d)(2), shall--
            (1) be final and conclusive on the claimant, with respect 
        to all claims arising out of or relating to the same subject 
        matter;
            (2) constitute a complete release of all claims against the 
        United States (including any agency or employee of the United 
        States) under chapter 171 of title 28, United States Code 
        (commonly known as the ``Federal Tort Claims Act''), or any 
        other Federal or State law, arising out of or relating to the 
        same subject matter; and
            (3) shall include a certification by the claimant, made 
        under penalty of perjury and subject to the provisions of 
        section 1001 of title 18, United States Code, that such claim 
        is true and correct.
    (f) Regulations and Public Information.--
            (1) Regulations.--Notwithstanding any other provision of 
        law, not later than 45 days after the date of the enactment of 
        this Act, the Director shall promulgate and publish in the 
        Federal Register interim final regulations for the processing 
        and payment of claims under this Act.
            (2) Public information.--
                    (A) In general.--At the time at which the Director 
                promulgates regulations under paragraph (1), the 
                Director shall publish, in newspapers of general 
                circulation in the each of the several States and the 
                District of Columbia, a clear, concise, and easily 
                understandable explanation, in English and Spanish, 
                of--
                            (i) the rights conferred under this Act; 
                        and
                            (ii) the procedural and other requirements 
                        of the regulations promulgated under paragraph 
                        (1).
                    (B) Dissemination through other media.--The 
                Director shall disseminate the explanation published 
                under subparagraph (A) through brochures, pamphlets, 
                radio, television, and other media that the Director 
                determines are likely to reach prospective claimants.
    (g) Consultation.--In administering this Act, the Director shall 
consult with the Attorney General, the Secretary of Veterans Affairs, 
the Secretary of the Defense, the Secretary of Commerce, other Federal 
agencies, and State and local authorities, as determined to be 
necessary by the Director to--
            (1) ensure the efficient administration of the claims 
        process; and
            (2) provide for local concerns.
    (h) Election of Remedy.--
            (1) In general.--An injured person may elect to seek 
        reimbursement from the United States for one or more injuries 
        resulting from the unauthorized use, disclosure, or 
        dissemination of personal identifying information that was 
        included in the data described in section 3(2)(A) by--
                    (A) submitting a claim under this Act;
                    (B) filing a claim or bringing a civil action under 
                chapter 171 of title 28, United States Code; or
                    (C) bringing an authorized civil action under any 
                other provision of law.
            (2) Effect of election.--An election by an injured person 
        to seek reimbursement in any manner described in paragraph (1) 
        shall be final and conclusive on the claimant with respect to 
        all injuries resulting from the unauthorized use, disclosure, 
        or dissemination of personal identifying information that was 
        included in the data described in section 3(2)(A) that are 
        suffered by the claimant.
            (3) Arbitration.--
                    (A) In general.--Not later than 45 days after the 
                date of the enactment of this Act, the Director shall 
                establish by regulation procedures under which a 
                dispute regarding a claim submitted under this Act may 
                be settled by arbitration.
                    (B) Arbitration as remedy.--On establishment of 
                arbitration procedures under subparagraph (A), an 
                injured person that submits a disputed claim under this 
                Act may elect to settle the claim through arbitration.
                    (C) Binding effect.--An election by an injured 
                person to settle a claim through arbitration under this 
                paragraph shall--
                            (i) be binding; and
                            (ii) preclude any exercise by the injured 
                        person of the right to judicial review of a 
                        claim described in subsection (i).
            (4) No effect on entitlements.--Nothing in this Act affects 
        any right of a claimant to file a claim for benefits under any 
        Federal entitlement program.
    (i) Judicial Review.--
            (1) In general.--Any claimant aggrieved by a final decision 
        of the Director under this Act may, not later than 60 days 
        after the date on which the decision is issued, bring a civil 
        action in the an appropriate United States District Court, to 
        modify or set aside the decision, in whole or in part.
            (2) Record.--The court shall hear a civil action under 
        paragraph (1) on the record made before the Director.
            (3) Standard.--The decision of the Director incorporating 
        the findings of the Director shall be upheld if the decision is 
        supported by substantial evidence on the record considered as a 
        whole.
    (j) Attorney's and Agent's Fees.--
            (1) In general.--No attorney or agent, acting alone or in 
        combination with any other attorney or agent, shall charge, 
        demand, receive, or collect, for services rendered in 
        connection with a claim submitted under this Act, fees in 
        excess of 10 percent of the amount of any payment on the claim.
            (2) Violation.--An attorney or agent who violates paragraph 
        (1) shall be fined not more than $10,000.
    (k) Applicability of Debt Collection Requirements.--Section 3716 of 
title 31, United States Code, shall not apply to any payment under this 
Act.

SEC. 6. REPORT; AUDIT.

    (a) Not later than 180 days after the date of promulgation of 
regulations under section 5(f)(1), and semiannually thereafter, the 
Director shall submit to the Committees on Veterans Affairs, Energy and 
Commerce, and Judiciary of the House of Representatives, and the 
Committees on Veterans Affairs, Commerce, Science and Transportation, 
and Judiciary of the Senate, a report that describes the claims 
submitted under this Act during the six months preceding the date of 
submission of the report, including, for each claim--
            (1) the amount claimed;
            (2) a brief description of the nature of the claim; and
            (3) the status or disposition of the claim, including the 
        amount of any payment under this Act.
    (b) The Comptroller General shall conduct an annual audit on the 
payment of all claims made under this Act, and shall report to the 
committees described in subsection (a) on the results of this audit 
beginning not later than the expiration of the 1-year period beginning 
on the date of the enactment of this Act.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Director such sums 
as are necessary to carry out this Act, to remain available until 
expended.

Summary: Veterans Identity Protection Act or VIP Act - Establishes as an independent office in the executive branch the Office of Veterans Identity Protection Claims, headed by a Director, to receive, process, and pay claims for injuries suffered as a result of the unauthorized use, disclosure, or dissemination of identifying information stolen from the Department of Veterans Affairs (VA) or otherwise compromised as a result of a security breach. Authorizes judicial review of claim determinations.