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<bill bill-stage="Reported-in-House" bill-type="olc" dms-id="H283DD2A0606A4B819F4859C9E7204CEF" public-private="public">
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<dublinCore>
<dc:title>113 HR 1405 RH: To amend title 38, United States Code, to require the Secretary of Veterans Affairs to include an appeals form in any notice of decision issued for the denial of a benefit sought.</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2013-06-25</dc:date>
<dc:format>text/xml</dc:format>
<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<form>
		<distribution-code display="yes">IB</distribution-code>
		<calendar display="yes">Union Calendar No. 95</calendar>
		<congress display="yes">113th CONGRESS</congress>
		<session display="yes">1st Session</session>
		<legis-num>H. R. 1405</legis-num>
		<associated-doc display="yes" role="report">[Report No.
		  113–130]</associated-doc>
		<current-chamber display="yes">IN THE HOUSE OF
		  REPRESENTATIVES</current-chamber>
		<action>
			<action-date date="20130325">March 25, 2013</action-date>
			<action-desc><sponsor name-id="T000468">Ms. Titus</sponsor> (for
			 herself and <cosponsor name-id="R000594">Mr. Runyan</cosponsor>) introduced the
			 following bill; which was referred to the
			 <committee-name added-display-style="italic" committee-id="HVR00" deleted-display-style="strikethrough">Committee on Veterans’
			 Affairs</committee-name></action-desc>
		</action>
		<action>
			<action-date date="20130625">June 25, 2013</action-date>
			<action-desc>Additional sponsors: <cosponsor name-id="T000472">Mr.
			 Takano</cosponsor>, <cosponsor name-id="C000059">Mr. Calvert</cosponsor>,
			 <cosponsor name-id="J000292">Mr. Johnson of Ohio</cosponsor>,
			 <cosponsor name-id="L000567">Mr. Lance</cosponsor>,
			 <cosponsor name-id="O000170">Mr. O'Rourke</cosponsor>,
			 <cosponsor name-id="L000565">Mr. Loebsack</cosponsor>,
			 <cosponsor name-id="R000599">Mr. Ruiz</cosponsor>, and
			 <cosponsor name-id="R000011">Mr. Rahall</cosponsor></action-desc>
		</action>
		<action>
			<action-date date="20130625">June 25, 2013</action-date>
			<action-desc>Reported with amendments, committed to the Committee of
			 the Whole House on the State of the Union, and ordered to be
			 printed</action-desc>
			<action-instruction>Strike out all after the enacting clause and insert
			 the part printed in italic</action-instruction>
		</action>
		<action display="yes">
			<action-desc display="yes"><pagebreak></pagebreak></action-desc>
		</action>
		<legis-type>A BILL</legis-type>
		<official-title display="yes">To amend title 38, United States Code, to
		  require the Secretary of Veterans Affairs to include an appeals form in any
		  notice of decision issued for the denial of a benefit
		  sought.<pagebreak></pagebreak></official-title>
	</form>
	<legis-body changed="deleted" committee-id="HVR00" id="HA6B7077C230F4D4A9ED3C78D9504F29A" reported-display-style="strikethrough" style="OLC">
		<section id="HD0A62C81664F48998027AB4A705139BB" section-type="section-one"><enum>1.</enum><header>Inclusion of appeals forms in
			 notices of decisions of benefits denials issued by the Secretary of Veterans
			 Affairs</header>
			<subsection id="HE133259533FD4281905790B9F712D46E"><enum>(a)</enum><header>In
			 general</header><text display-inline="yes-display-inline">Section 5104(b) of
			 title 38, United States Code, is amended—</text>
				<paragraph id="HA6F84DFE20714B41AE29A0E37AA823BF"><enum>(1)</enum><text>by striking
			 <quote>and (2)</quote> and inserting <quote>(2)</quote>; and</text>
				</paragraph><paragraph id="HB2B9F71A15EC409AA02D448D5364BE6A"><enum>(2)</enum><text>by inserting
			 before the period at the end the following: <quote>, and (3) a form that may be
			 used to file an appeal of the decision</quote>.</text>
				</paragraph></subsection><subsection id="H0C0315D0CA244117B33891729B507C3A"><enum>(b)</enum><header>Effective
			 date</header><text>The amendments made by subsection (a) shall apply with
			 respect to decisions made by the Secretary under <external-xref legal-doc="usc" parsable-cite="usc/38/511">section 511</external-xref> of title 38,
			 United States Code, on or after the date of the enactment of this Act.</text>
			</subsection></section></legis-body>
	<legis-body changed="added" committee-id="HVR00" display-enacting-clause="no-display-enacting-clause" id="H111031A3D76D45B281E1056590F558A7" reported-display-style="italic" style="OLC">
		<section id="H28D77CC7E98A4982850694FFDDE4DF89" section-type="section-one"><enum>1.</enum><header>Inclusion of notice of
			 disagreement forms in notices of decisions of benefits denials issued by
			 Secretary of Veterans Affairs</header>
			<subsection id="HE202F3FCAED242B58CCCCBC40B34822F"><enum>(a)</enum><header>In
			 general</header><text display-inline="yes-display-inline">Section 5104(b) of
			 title 38, United States Code, is amended—</text>
				<paragraph id="H00A047671F4C4B41A58600407543BEB2"><enum>(1)</enum><text>by striking <quote>and
			 (2)</quote> and inserting <quote>(2)</quote>; and</text>
				</paragraph><paragraph id="HBD4B9A4423A7499495929E265283737A"><enum>(2)</enum><text>by inserting before the
			 period at the end the following: <quote>, and (3) a form that may be used to
			 file a notice of disagreement to the decision</quote>.</text>
				</paragraph></subsection><subsection id="H4DA06E67EDA441379FE5D6BDA969F6C4"><enum>(b)</enum><header>Effective
			 date</header><text>The amendments made by subsection (a) shall apply with
			 respect to decisions made by the Secretary under <external-xref legal-doc="usc" parsable-cite="usc/38/511">section 511</external-xref> of title 38,
			 United States Code, on or after the date of the enactment of this Act.</text>
			</subsection></section><section id="H211FB02539AA49378AAD1901B6F907FC"><enum>2.</enum><header>Provision of status
			 under law by honoring certain members of the reserve components as
			 veterans</header>
			<subsection id="HB1099D899B624BA786A01D7987F37AE6"><enum>(a)</enum><header>Veteran status</header>
				<paragraph id="H86ACD5F191DE47E78F1332A9B85FD812"><enum>(1)</enum><header>In
			 general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/38/1">Chapter 1</external-xref> of title 38, United States Code, is amended by
			 inserting after section 107 the following new section:</text>
					<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H9C83A9B5C9AD434FA366F2C56B4C6878" reported-display-style="italic" style="USC">
						<section id="HA0D90C56C75F4B7DB26DB4DFB0512342"><enum>107A.</enum><header>Honoring as veterans
				certain persons who performed service in the reserve components</header><text display-inline="no-display-inline">Any person who is entitled under chapter
				1223 of title 10 to retired pay for nonregular service or, but for age, would
				be entitled under such chapter to retired pay for nonregular service shall be
				honored as a veteran but shall not be entitled to any benefit by reason of this
				section.</text>
						</section><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph><paragraph id="H140C484684254857B6C6A6CFD2D81A0F"><enum>(2)</enum><header>Clerical
			 amendment</header><text>The table of sections at the beginning of such chapter
			 is amended by inserting after the item relating to section 107 the following
			 new item:</text>
					<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="HB6F7DEE5955943F18F0E80004CA9917C" reported-display-style="italic" style="USC">
						<toc changed="added" committee-id="HVR00" regeneration="no-regeneration" reported-display-style="italic">
							<toc-entry level="section">107A. Honoring as veterans certain persons who
				performed service in the reserve
				components.</toc-entry>
						</toc>
						<after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection><subsection id="HA6E043ECD8DD432ABA6A1F0F2430CA07"><enum>(b)</enum><header>Clarification regarding
			 benefits</header><text>No person may receive any benefit under the laws
			 administered by the Secretary of Veterans Affairs solely by reason of section
			 107A of title 38, United States Code, as added by subsection (a).</text>
			</subsection></section><section id="H1B6C79C24EF8436885D3EDAE51449B09" section-type="subsequent-section"><enum>3.</enum><header>Provision of access to
			 case-tracking information</header>
			<subsection id="HF6471CA3CAB74032B20ADC64362AFB07"><enum>(a)</enum><header>In
			 general</header><text display-inline="yes-display-inline">Chapter 59 of title
			 38, United States Code, is amended by adding at the end the following:</text>
				<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H9850A35E0F42479FAC2D945244D52071" reported-display-style="italic" style="USC">
					<section id="HB4B813B9184644EF8815E8AC267A7DA1"><enum>5906.</enum><header>Provision of access
				to case-tracking information</header>
						<subsection id="H6261F222E603436DB4A2BDDDE34F216F"><enum>(a)</enum><header>In
				general</header><paragraph commented="no" display-inline="yes-display-inline" id="HFA0982108D464F6DA49DBEA21F429435"><enum>(1)</enum><text>In
				accordance with subsection (b), the Secretary shall provide a covered employee
				with access to the case-tracking system to provide a veteran with information
				regarding the status of a claim submitted by such veteran if such employee is
				acting under written permission or a power of attorney executed by such
				veteran.</text>
							</paragraph><paragraph changed="added" committee-id="HVR00" id="H3E073FB114E24470B5612010F7178627" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>In providing a covered
				employee with access to the case-tracking system under paragraph (1), the
				Secretary shall ensure—</text>
								<subparagraph id="H74D2465B4A7F48CA862C3721D1F02C92"><enum>(A)</enum><text display-inline="yes-display-inline">that such access—</text>
									<clause id="H10BF577EAC8A41349DFA9B1C70E2D4D5"><enum>(i)</enum><text>is provided in a manner
				that does not allow such employee to modify the data contained in such system;
				and</text>
									</clause><clause id="HB4B637EEFDB54B2E8C6413E3C6F2EFB9"><enum>(ii)</enum><text>does not include access
				to medical records; and</text>
									</clause></subparagraph><subparagraph id="H2D29165BAC714586928A93BC0BC6C36B"><enum>(B)</enum><text>that each time a covered
				employee accesses such system, the employee must certify that such access is
				for official purposes only.</text>
								</subparagraph></paragraph></subsection><subsection id="HB13305C9A0DA4C1B8ECE5C247F01AA86"><enum>(b)</enum><header>Privacy certification
				course</header><text>The Secretary 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.</text>
						</subsection><subsection id="HDDC1B773C4AE45219B74DE4C425D37D0"><enum>(c)</enum><header>Treatment of
				disclosure</header><text>The access to information by a covered employee
				pursuant to subsection (a)(1) shall be deemed to be—</text>
							<paragraph id="H2FDB5A98B89348DC8F4DCC0122A8F6A1"><enum>(1)</enum><text display-inline="yes-display-inline">a covered disclosure under section 552a(b)
				of title 5; and</text>
							</paragraph><paragraph id="H3B1CA1610C9541CA8C95DFBA009DA597"><enum>(2)</enum><text display-inline="yes-display-inline">a permitted disclosure under regulations
				promulgated under section 264(c) of the Health Insurance Portability and
				Accountability Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/42/1320d-2">42 U.S.C. 1320d–2</external-xref> note).</text>
							</paragraph></subsection><subsection id="HFFF2E20EC696432A9D2B60BE48B2A211"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
							<paragraph id="H2B79051A8DE24F0897760D287BB63A0E"><enum>(1)</enum><text>The term
				<term>case-tracking system</term> means the system of the Department of
				Veterans Affairs that provides information regarding the status of a claim
				submitted by a veteran.</text>
							</paragraph><paragraph id="H0856A722D5434D4C911521E2AAFE38D6"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>covered employee</term>
				means an employee of a State or local governmental agency (including a veterans
				service officer) who, in the course of carrying out the responsibilities of
				such employment, assists veterans with claims for any benefit under the laws
				administered by the
				Secretary.</text>
							</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
			</subsection><subsection id="HC3B3DE7EE71940E29BE51121B472B3F3"><enum>(b)</enum><header>Clerical
			 amendment</header><text>The table of sections at the beginning of such chapter
			 is amended by adding at the end the following new item:</text>
				<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="HCF7506BBBF3043A6B04C33FB1A71F734" reported-display-style="italic" style="USC">
					<toc changed="added" committee-id="HVR00" regeneration="no-regeneration" reported-display-style="italic">
						<toc-entry level="section">5906. Provision of access to case-tracking
				information.</toc-entry>
					</toc>
					<after-quoted-block>.</after-quoted-block></quoted-block>
			</subsection></section><section id="H227653A220D54DB5BD4B1050F09D6881" section-type="subsequent-section"><enum>4.</enum><header>Improvement of
			 fiduciaries for veterans</header>
			<subsection id="HD0FB6F1BD00B47388FCE7906C40454F3"><enum>(a)</enum><header>Appointment and
			 supervision</header>
				<paragraph id="H71351A371BE140A990D1E30C20788D8D"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/38/5502">Section 5502</external-xref> of title 38,
			 United States Code, is amended to read as follows:</text>
					<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H5B335BE072BB440F9785E5D635C9B06E" reported-display-style="italic" style="USC">
						<section id="H191F3A0727294C488C0C33BB5FEA9082"><enum>5502.</enum><header>Appointment of
				fiduciaries</header>
							<subsection id="H1320AA90135940E398076A9BDD945C08"><enum>(a)</enum><header>Appointment</header><paragraph commented="no" display-inline="yes-display-inline" id="HECA55960D1EB4CCDA4E71511E0733002"><enum>(1)</enum><text display-inline="yes-display-inline">Where it appears to the Secretary 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 benefit of the
				beneficiary, regardless of any legal disability on the part of the
				beneficiary.</text>
								</paragraph><paragraph changed="added" committee-id="HVR00" id="HB573487CF22944779FDAB30E49004916" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>When in the opinion of
				the Secretary, a temporary 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 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
				appointment of the fiduciary without obtaining a court order for appointment of
				a guardian, conservator, or other fiduciary under the authority provided in
				section 5502(b) of this title.</text>
								</paragraph></subsection><subsection commented="no" id="H4F591DEF37BF41F88607801F311A14D9"><enum>(b)</enum><header>Appeals</header><paragraph commented="no" display-inline="yes-display-inline" id="HCFB5F7FF4CAB4AB688066F79717923DA"><enum>(1)</enum><text display-inline="yes-display-inline">If the Secretary determines a beneficiary
				to be mentally incompetent for purposes of appointing a fiduciary under this
				chapter, the Secretary shall provide such beneficiary with a written statement
				detailing the reasons for such determination.</text>
								</paragraph><paragraph changed="added" committee-id="HVR00" id="H2A0D8536057349BBAA566C1492603431" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>A beneficiary whom the
				Secretary has determined to be mentally incompetent for purposes of appointing
				a fiduciary under this chapter may appeal such determination.</text>
								</paragraph></subsection><subsection commented="no" id="H53DDF15F11E0486E8ECA99FA21EA4B3A"><enum>(c)</enum><header>Modification</header><paragraph commented="no" display-inline="yes-display-inline" id="HFCCC154E4F90432D929DC50FF1B38336"><enum>(1)</enum><text>A beneficiary for whom
				the Secretary appoints a fiduciary under this chapter may, at any time, request
				the Secretary to—</text>
									<subparagraph changed="added" commented="no" committee-id="HVR00" id="HAF9416581C4149009A31402D9DB7326D" indent="up1" reported-display-style="italic"><enum>(A)</enum><text>remove the fiduciary so
				appointed; and</text>
									</subparagraph><subparagraph changed="added" commented="no" committee-id="HVR00" id="H98675C8BFE08492DB14B81ECE5CB8D34" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>have a new fiduciary
				appointed.</text>
									</subparagraph></paragraph><paragraph changed="added" commented="no" committee-id="HVR00" id="HEB99EAE8797146F5B3F4C47CC1D044C1" indent="up1" reported-display-style="italic"><enum>(2)</enum><text display-inline="yes-display-inline">The Secretary shall comply with a request
				under paragraph (1) if the Secretary determines that the request is made in
				good faith and—</text>
									<subparagraph id="HEE7C390DDD33483E99EEA975BCD903C3"><enum>(A)</enum><text>the fiduciary requested
				to be removed receives a fee from the beneficiary and a suitable volunteer
				fiduciary is available to assist the beneficiary; or</text>
									</subparagraph><subparagraph id="HDC54F4D5EBC04C09BD636E63092CC27E"><enum>(B)</enum><text display-inline="yes-display-inline">the beneficiary provides credible
				information that the fiduciary requested to be removed is—</text>
										<clause id="H276DCBDBD79F465681616FEF6BF75784"><enum>(i)</enum><text>not acting in the
				interest of the beneficiary ;or</text>
										</clause><clause id="H795ECB20DAD24D4AA92A510BABB4D936"><enum>(ii)</enum><text>unable to effectively
				serve the beneficiary because of an irreconcilable personality conflict or
				disagreement.</text>
										</clause></subparagraph></paragraph><paragraph changed="added" commented="no" committee-id="HVR00" id="HA7DE9A4F30874514B83AF3B510E32C0C" indent="up1" reported-display-style="italic"><enum>(3)</enum><text display-inline="yes-display-inline">The Secretary shall ensure that any removal
				or new appointment of a fiduciary under paragraph (1) does not delay or
				interrupt the beneficiary’s receipt of benefits administered by the
				Secretary.</text>
								</paragraph></subsection><subsection commented="no" id="H4019EE1B2FF94B8F89E79F002E08AC15"><enum>(d)</enum><header>Independence</header><text>A
				fiduciary appointed by the Secretary shall operate independently of the
				Department to determine the actions that are in the interest of the
				beneficiary.</text>
							</subsection><subsection commented="no" id="H6611EBB6B3C14A8FAAE5A8AF7838E892"><enum>(e)</enum><header>Predesignation</header><text display-inline="yes-display-inline">A veteran may predesignate a fiduciary
				by—</text>
								<paragraph display-inline="no-display-inline" id="H9A25B31CA6AB40048F9FD4D003C515E2"><enum>(1)</enum><text>submitting written notice
				to the Secretary of the predesignated fiduciary; or</text>
								</paragraph><paragraph display-inline="no-display-inline" id="HF67F6A6755374FB3947308176E226E2C"><enum>(2)</enum><text>submitting a form
				provided by the Secretary for such purpose.</text>
								</paragraph></subsection><subsection commented="no" id="HF6C8EAFFD76C4835AAB14ED52A745470"><enum>(f)</enum><header>Appointment of
				non-Predesignated fiduciary</header><text display-inline="yes-display-inline">If a beneficiary designates an individual
				to serve as a fiduciary under subsection (e) and the Secretary appoints an
				individual not so designated as the fiduciary for such beneficiary, the
				Secretary shall notify such beneficiary of—</text>
								<paragraph commented="no" id="H951E5CFA2A314462AAA0DD85C26FD873"><enum>(1)</enum><text>the reason why such
				designated individual was not appointed; and</text>
								</paragraph><paragraph commented="no" id="HD5C2778E6FBE48089511D16B5CF95F03"><enum>(2)</enum><text display-inline="yes-display-inline">the ability of the beneficiary to modify
				the appointed fiduciary under subsection (c).</text>
								</paragraph></subsection><subsection commented="no" id="H81E883AA6993430DA9DFFA8006C02FA7"><enum>(g)</enum><header>Priority of
				appointment</header><text display-inline="yes-display-inline">In appointing a
				fiduciary under this chapter, if a beneficiary does not designate a fiduciary
				pursuant to subsection (e), to the extent possible the Secretary shall appoint
				a person who is—</text>
								<paragraph commented="no" id="HC6989A4062A648498059627EF12A9030"><enum>(1)</enum><text display-inline="yes-display-inline">a relative of the beneficiary;</text>
								</paragraph><paragraph id="H5F86B33271E54B00B988F4F052AFC9CC"><enum>(2)</enum><text>appointed as guardian of
				the beneficiary by a court of competent jurisdiction; or</text>
								</paragraph><paragraph commented="no" id="H9900514551AA4104A3C5116F210C6531"><enum>(3)</enum><text>authorized to act on
				behalf of the beneficiary under a durable power of
				attorney.</text>
								</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph><paragraph id="H58828FBE187E4AF099A06D64B52C408B"><enum>(2)</enum><header>Clerical
			 amendment</header><text>The table of sections 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:</text>
					<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="HE42F5D2485194382A13A1514280399BA" reported-display-style="italic" style="USC">
						<toc changed="added" committee-id="HVR00" regeneration="no-regeneration" reported-display-style="italic">
							<toc-entry level="section">5502. Appointment of
				fiduciaries.</toc-entry>
						</toc>
						<after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection><subsection id="HE4F765812ECA4A438452AA50315BE37D"><enum>(b)</enum><header>Supervision</header>
				<paragraph id="H164EFDBA72944AE096A48AE61D5ABBE8"><enum>(1)</enum><header>In
			 general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/38/55">Chapter 55</external-xref> of title 38, United States Code, is amended by
			 inserting after section 5502, as amended by subsection (a)(1), the following
			 new section:</text>
					<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H5ABF839F560A4BC4B7687E02011687B2" reported-display-style="italic" style="USC">
						<section id="H2DED205B9D7F49B498BC036547A077C7"><enum>5502A.</enum><header>Supervision of
				fiduciaries</header>
							<subsection id="H60814B1886B74B8099C9C0D4E763D70C"><enum>(a)</enum><header>Commission</header><paragraph commented="no" display-inline="yes-display-inline" id="H265607314BCF499BA565227989B012A0"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H05420C928485486AB974F8AE246F32BF"><enum>(A)</enum><text>In a case in which the
				Secretary 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
				benefits 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:</text>
										<clause changed="added" committee-id="HVR00" id="H2FB96143C5CD48A699EE1632AC9F5E00" indent="up2" reported-display-style="italic"><enum>(i)</enum><text>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.</text>
										</clause><clause changed="added" committee-id="HVR00" id="HED6F92D4C43040BA9AEF795B1D0B2C9A" indent="up2" reported-display-style="italic"><enum>(ii)</enum><text>$35.</text>
										</clause></subparagraph><subparagraph changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H94131E60D519499288045EAF8995B06B" indent="up2" reported-display-style="italic"><enum>(B)</enum><text display-inline="yes-display-inline">A commission paid under this paragraph may
				not be derived from any award to a beneficiary regarding back pay or
				retroactive benefits payments.</text>
									</subparagraph><subparagraph changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H676AAD10895B4B24A4EB1F6F1FFEF7C2" indent="up2" reported-display-style="italic"><enum>(C)</enum><text>A
				commission may not be authorized for a fiduciary who receives any other form of
				remuneration or payment in connection with rendering fiduciary services for
				benefits under this title on behalf of the beneficiary.</text>
									</subparagraph><subparagraph changed="added" committee-id="HVR00" id="HC4DD3CF12B2846DF8032F5BBF0409D81" indent="up2" reported-display-style="italic"><enum>(D)</enum><text display-inline="yes-display-inline">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.</text>
									</subparagraph><subparagraph changed="added" committee-id="HVR00" id="HF8194B5E6437468E98455BCF6272FD0C" indent="up2" reported-display-style="italic"><enum>(E)</enum><text display-inline="yes-display-inline">If the Secretary determines that the
				fiduciary has misused any benefit or payments of a beneficiary, the Secretary
				may revoke the fiduciary status of the fiduciary.</text>
									</subparagraph></paragraph><paragraph changed="added" committee-id="HVR00" display-inline="no-display-inline" id="HB8ACBD67D3034747B927C58DA2BC125D" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>Where, in the opinion of
				the Secretary, any fiduciary receiving funds on behalf of a Department
				beneficiary is acting in such a number of cases as to make it impracticable to
				conserve properly the estates or to supervise the persons of the beneficiaries,
				the Secretary may refuse to make future payments in such cases as the Secretary
				may deem proper.</text>
								</paragraph></subsection><subsection display-inline="no-display-inline" id="H0FD0B73C408A4158BA60865D2D2C6013"><enum>(b)</enum><header>Court</header><text>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 dependents
				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 notice, to render an account to the Secretary from
				time to time showing the application of such payments for the benefit 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
				instituted by the Secretary or otherwise, directly affecting money paid to such
				fiduciary under this section.</text>
							</subsection><subsection id="H59A3A017BB3644C88F38583A57621B45"><enum>(c)</enum><header>Payment of certain
				expenses</header><text>Authority is hereby granted for the payment of any court
				or other expenses 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 administered 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 authorized, when such payment is authorized
				by the Secretary.</text>
							</subsection><subsection id="H7A85FD81990F429B9B7922962DA25C7F"><enum>(d)</enum><header>Temporary payment of
				benefits</header><text>All or any part of any benefits the payment of which is
				suspended or withheld under this section may, in the discretion of the
				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 dependent 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 competent, 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 beneficiary'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 Secretary deposited before
				or after August 7, 1959, in the personal funds of patients trust fund on
				account of such veteran 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 surviving spouse, the children (without
				regard to age or marital 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 current 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.</text>
							</subsection><subsection id="H25C62D4FAABD45F18C8E3184E888BDE3"><enum>(e)</enum><header>Escheatment</header><text>Any
				funds in the hands of a fiduciary appointed by a State court or the Secretary
				derived from benefits payable under laws administered by the Secretary, which
				under the law of the State wherein the beneficiary had last legal residence
				would escheat to the State, shall escheat to the United States and shall be
				returned by such fiduciary, or by the personal representative of the deceased
				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 applicable revolving fund, trust fund, or appropriation.</text>
							</subsection><subsection id="H8EA34B4697954807BFDC935CE4D25630"><enum>(f)</enum><header>Assistance</header><text>The
				Secretary shall provide to a fiduciary appointed under section 5502 of this
				title materials and tools to assist the fiduciary in carrying out the
				responsibilities of the fiduciary under this chapter, including—</text>
								<paragraph id="H784A9627ECCA45CD839697BC6C0733FE"><enum>(1)</enum><text>handbooks, brochures, or
				other written material that explain the responsibilities of a fiduciary under
				this chapter;</text>
								</paragraph><paragraph id="H4193A51CA4A148A68C304E1E29105D6C"><enum>(2)</enum><text>tools located on an
				Internet website, including forms to submit to the Secretary required
				information; and</text>
								</paragraph><paragraph id="HBD8C0F66A4194AC18FC3551F058CD51E"><enum>(3)</enum><text>assistance provided by
				telephone.</text>
								</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph><paragraph id="H69C2E85050784B1CBB75E17768BF1BAA"><enum>(2)</enum><header>Clerical
			 amendment</header><text>The table of sections 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:</text>
					<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H7B3D795F366642E3ADA8D9479586EDF1" reported-display-style="italic" style="USC">
						<toc changed="added" committee-id="HVR00" regeneration="no-regeneration" reported-display-style="italic">
							<toc-entry level="section">5502A. Supervision of
				fiduciaries.</toc-entry>
						</toc>
						<after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection><subsection display-inline="no-display-inline" id="HA0DBD93578264E35B7FB700C13FECBBA"><enum>(c)</enum><header>Definition of
			 fiduciary</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/5506">Section 5506</external-xref> of title 38, United States Code is
			 amended—</text>
				<paragraph id="H863AD652B01D4BEC83EDE38ADE6AC043"><enum>(1)</enum><text>by striking <quote>For
			 purposes</quote> and inserting <quote>(a) For purposes</quote>; and</text>
				</paragraph><paragraph id="H07A2A8EA252F4255AD7B41CE757C3C52"><enum>(2)</enum><text>by adding at the end the
			 following new subsection:</text>
					<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H208F19111E4A494486B94157CEBFDDD3" reported-display-style="italic" style="OLC">
						<subsection id="HC53DAE1151624F1CB6B18037620FAA76"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HA904C24634BF412F8A4C3E3C93C11553"><enum>(1)</enum><text display-inline="yes-display-inline">For purposes of subsection (a), the term
				<term>person</term> includes any—</text>
								<subparagraph changed="added" committee-id="HVR00" id="H4009949603634473B2F513D2155C0FB9" indent="up1" reported-display-style="italic"><enum>(A)</enum><text>State or local government
				agency whose mission is to carry out income maintenance, social service, or
				health care-related activities;</text>
								</subparagraph><subparagraph changed="added" committee-id="HVR00" id="H8F4CA4BB50724841A2DF92A5A36CDC8F" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>any State or local
				government agency with fiduciary responsibilities; or</text>
								</subparagraph><subparagraph changed="added" committee-id="HVR00" id="HA1AB8350F75746859AC28841CF32984A" indent="up1" reported-display-style="italic"><enum>(C)</enum><text>any nonprofit social
				service agency that the Secretary determines—</text>
									<clause id="H6A109BBC8A4549F1BB98D384F8FEFAC4"><enum>(i)</enum><text display-inline="yes-display-inline">regularly provides services as a fiduciary
				concurrently to five or more individuals; and</text>
									</clause><clause id="H78669FF6DA9543B0925A5A8284AD22D6"><enum>(ii)</enum><text>is not a creditor of any
				such individual.</text>
									</clause></subparagraph></paragraph><paragraph changed="added" committee-id="HVR00" id="HCE6C0271E2BC4656BF075FFA603DE561" indent="up1" reported-display-style="italic"><enum>(2)</enum><text display-inline="yes-display-inline">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 Social Security Act (42 U.S.C.
				1007(h)).</text>
							</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection><subsection id="H304C9EFE52424E7C95376587139FEBCA"><enum>(d)</enum><header>Qualifications</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/38/5507">Section 5507</external-xref> of title 38, United States
			 Code, is amended to read as follows:</text>
				<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H434AC4690DF4454DBAB69895B7EA3A83" reported-display-style="italic" style="USC">
					<section id="H1CC2B7483D1E4E2186D19218853B1142"><enum>5507.</enum><header>Inquiry,
				investigations, and qualification of fiduciaries</header>
						<subsection id="H5FDC8209527545F2A381354FE822D746"><enum>(a)</enum><header>Investigation</header><text>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—</text>
							<paragraph id="H710EFBF357B64E2F89B1884D8D5210E9"><enum>(1)</enum><text>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);</text>
							</paragraph><paragraph id="HE871EDF60B1D426FA7259CDB330C0912"><enum>(2)</enum><text>adequate evidence that
				certification of that person as fiduciary for that beneficiary is in the
				interest of such beneficiary (as determined by the Secretary under
				regulations);</text>
							</paragraph><paragraph id="H02B62504D46044C496107AE71E7A3501"><enum>(3)</enum><text>adequate evidence that
				the person to serve as fiduciary protects the private information of a
				beneficiary in accordance with subsection (d)(1); and</text>
							</paragraph><paragraph id="H6018FEDA528F4635A1E1B28802D4A264"><enum>(4)</enum><text display-inline="yes-display-inline">the furnishing of any bond that may be
				required by the Secretary in accordance with subsection (f).</text>
							</paragraph></subsection><subsection id="H7E56C038F0D047D6B2741CFE7219043A"><enum>(b)</enum><header>Elements of
				investigation</header><paragraph commented="no" display-inline="yes-display-inline" id="H06DD9D9EA7D34172BF020232FAA58F4F"><enum>(1)</enum><text display-inline="yes-display-inline">In conducting an inquiry or investigation
				of a proposed fiduciary under subsection (a)(1), the Secretary shall
				conduct—</text>
								<subparagraph changed="added" committee-id="HVR00" id="H1839E22FB4B043AE9BE747A445A820C7" indent="up1" reported-display-style="italic"><enum>(A)</enum><text display-inline="yes-display-inline">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</text>
								</subparagraph><subparagraph changed="added" committee-id="HVR00" id="H3B97200F77994C8B93A0E149CA33544A" indent="up1" reported-display-style="italic"><enum>(B)</enum><text display-inline="yes-display-inline">a background check of the proposed
				fiduciary to—</text>
									<clause id="H11BE827DD18043DBB96FB138A7AA7675"><enum>(i)</enum><text>in accordance with
				paragraph (2), determine whether the proposed fiduciary has been convicted of a
				crime; and</text>
									</clause><clause id="HB3AE35DDB15B458A8D5C249EA59C7EBB"><enum>(ii)</enum><text display-inline="yes-display-inline">determine whether the proposed fiduciary
				will serve the best interest of the beneficiary, including by conducting a
				credit check of the proposed fiduciary and checking the records under paragraph
				(5).</text>
									</clause></subparagraph></paragraph><paragraph changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H948A52186D904CAAA43CA905AC71C4D2" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The
				Secretary shall request information concerning whether that person has been
				convicted of any offense 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.</text>
							</paragraph><paragraph changed="added" committee-id="HVR00" id="HC9C17E94FF3D4CCB8167720762C21A56" indent="up1" reported-display-style="italic"><enum>(3)</enum><text display-inline="yes-display-inline">The Secretary shall conduct the background
				check described in paragraph (1)(B)—</text>
								<subparagraph id="HF94E1B70BC2B4A7D90BA520D83A8146F"><enum>(A)</enum><text>each time a person is
				proposed to be a fiduciary, regardless of whether the person is serving or has
				served as a fiduciary; and</text>
								</subparagraph><subparagraph id="H930EAE1376BD405884DC8DA0E193567F"><enum>(B)</enum><text>at no expense to the
				beneficiary.</text>
								</subparagraph></paragraph><paragraph changed="added" committee-id="HVR00" id="HDEFE88BAE4B54A6FAD02E34299CB1299" indent="up1" reported-display-style="italic"><enum>(4)</enum><text>Each proposed fiduciary
				shall disclose to the Secretary the number of beneficiaries that the fiduciary
				acts on behalf of.</text>
							</paragraph><paragraph changed="added" committee-id="HVR00" id="H7C152FCD3D2F4ADBAC839E9B8286512B" indent="up1" reported-display-style="italic"><enum>(5)</enum><text display-inline="yes-display-inline">The Secretary shall maintain records of any
				person who has—</text>
								<subparagraph display-inline="no-display-inline" id="HBBF4EA59E5F44AC399126CC069C28823"><enum>(A)</enum><text>previously served as a
				fiduciary; and</text>
								</subparagraph><subparagraph display-inline="no-display-inline" id="HCF43F6EF498242B3AF9A9BDF98777A00"><enum>(B)</enum><text>had
				such fiduciary status revoked by the Secretary.</text>
								</subparagraph></paragraph><paragraph changed="added" commented="no" committee-id="HVR00" id="H44896CDEA86D45C6A3725DCF3CCA1377" indent="up1" reported-display-style="italic"><enum>(6)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H883075468C6646FABE2894CDEF0832A7"><enum>(A)</enum><text>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 not later than 14
				days after the date on which the Secretary learns of such conviction.</text>
								</subparagraph><subparagraph changed="added" committee-id="HVR00" id="HD9731F10D238444F97EB088F107F3325" indent="up1" reported-display-style="italic"><enum>(B)</enum><text display-inline="yes-display-inline">A crime described in this subparagraph is a
				crime—</text>
									<clause id="H4FD87542ACC74952848BAA8B92D41B2E"><enum>(i)</enum><text>for which the fiduciary
				is convicted while serving as a fiduciary for any person;</text>
									</clause><clause id="H533EC1FAC0C847A899C1588BED91CD53"><enum>(ii)</enum><text>that is not included in
				a report submitted by the fiduciary under section 5509(a) of this title;
				and</text>
									</clause><clause id="H59163253636F4AAE94D8FD448B16E65D"><enum>(iii)</enum><text display-inline="yes-display-inline">that the Secretary determines could affect
				the ability of the fiduciary to act on behalf of the beneficiary.</text>
									</clause></subparagraph></paragraph></subsection><subsection id="H1A87F0F0499247F9BF75C88DC1F29DE6"><enum>(c)</enum><header>Investigation of
				certain persons</header><paragraph commented="no" display-inline="yes-display-inline" id="H4BBD33E8A6A447819F80E3545C6B41F7"><enum>(1)</enum><text>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 giving priority to
				conducting such inquiry or investigation. Any such inquiry or investigation
				carried out on such an expedited basis shall be carried out under regulations
				prescribed for purposes of this section.</text>
							</paragraph><paragraph changed="added" committee-id="HVR00" id="HCCCB060904BD484AB8A8A00A4F61EB3D" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>Paragraph (1) applies
				with respect to a proposed fiduciary who is—</text>
								<subparagraph display-inline="no-display-inline" id="H03FF6F313EBB4FCC81251BB09D6B0A72"><enum>(A)</enum><text>the
				parent (natural, adopted, or stepparent) of a beneficiary who is a
				minor;</text>
								</subparagraph><subparagraph display-inline="no-display-inline" id="HCA3EF10796164BA7AD31AAC076D6147F"><enum>(B)</enum><text>the
				spouse or parent of an incompetent beneficiary;</text>
								</subparagraph><subparagraph display-inline="no-display-inline" id="HDA16AF1FEB384C4398D144A22DF70182"><enum>(C)</enum><text>a
				person who has been appointed a fiduciary of the beneficiary by a court of
				competent jurisdiction;</text>
								</subparagraph><subparagraph display-inline="no-display-inline" id="H5DC11BF521D147E3A32467646D54773B"><enum>(D)</enum><text>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</text>
								</subparagraph><subparagraph id="H68F2A365A5614791A05C1EE2DC202FF4"><enum>(E)</enum><text display-inline="yes-display-inline">a person who is authorized to act on behalf
				of the beneficiary under a durable power of attorney.</text>
								</subparagraph></paragraph></subsection><subsection id="HFDB3F87080E24B65A2BC1D89CF0A0673"><enum>(d)</enum><header>Protection of private
				information</header><paragraph commented="no" display-inline="yes-display-inline" id="H8AB36EF9948C4805885ACDB8244AFA58"><enum>(1)</enum><text>A fiduciary shall take
				all reasonable precautions to—</text>
								<subparagraph changed="added" committee-id="HVR00" id="HFE9AE57308414C9F90CC588A6BBCA997" indent="up1" reported-display-style="italic"><enum>(A)</enum><text>protect the private
				information of a beneficiary, including personally identifiable information;
				and</text>
								</subparagraph><subparagraph changed="added" committee-id="HVR00" id="HF1F743643688418E9EDB151141824A1C" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>securely conducts
				financial transactions.</text>
								</subparagraph></paragraph><paragraph changed="added" commented="no" committee-id="HVR00" id="HC7ECD96089EB4C00A0C99F8541B85BCF" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>A fiduciary shall notify
				the Secretary of any action of the fiduciary that compromises or potentially
				compromises the private information of a beneficiary.</text>
							</paragraph></subsection><subsection id="HCC7DD8158A5544F5AC3CBC22EEE7FE7E"><enum>(e)</enum><header>Potential misuse of
				funds</header><paragraph commented="no" display-inline="yes-display-inline" id="H23E285DA42A5441DBFB77AAC3A4E68DD"><enum>(1)</enum><text>If
				the Secretary has reason to believe that a fiduciary may be misusing all or
				part of the benefit of a beneficiary, the Secretary shall—</text>
								<subparagraph changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H9BD4340C5D7340939CFD5BDAF6648BAF" indent="up1" reported-display-style="italic"><enum>(A)</enum><text>conduct a thorough
				investigation to determine the veracity of such belief; and</text>
								</subparagraph><subparagraph changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H29CD30E10255448BA7F8BAD9774ED750" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>if
				such veracity is established, transmit to the officials described in paragraph
				(2) a report of such investigation.</text>
								</subparagraph></paragraph><paragraph changed="added" committee-id="HVR00" id="H3D0FD72AAD4649CB80E17CEF931EE638" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The officials described
				in this paragraph are the following:</text>
								<subparagraph id="HC19DCA6B725349BEA68A0E5CF3E30A0D"><enum>(A)</enum><text>The Attorney
				General.</text>
								</subparagraph><subparagraph id="H1AA47726F89E451287BDB7029D1E935F"><enum>(B)</enum><text display-inline="yes-display-inline">Each head of a Federal department or agency
				that pays to a fiduciary or other person benefits under any law administered by
				such department of agency for the use and benefit of a minor, incompetent, or
				other beneficiary.</text>
								</subparagraph></paragraph></subsection><subsection id="HC9AAD6C6E5B54E27AD37ED2C53FF79CD"><enum>(f)</enum><header>Bond</header><text display-inline="yes-display-inline">In determining whether a proposed fiduciary
				is required to furnish a bond under subsection (a)(4), the Secretary shall
				consider—</text>
							<paragraph id="H3461387DC067495AB0D0D6AE9EE4BB2C"><enum>(1)</enum><text display-inline="yes-display-inline">the existence of any familial or other
				personal relationship between the proposed fiduciary and the beneficiary;
				and</text>
							</paragraph><paragraph id="H605C56B00214475E8357D23DEED96221"><enum>(2)</enum><text>the care the proposed
				fiduciary has taken to protect the interests of the beneficiary.</text>
							</paragraph></subsection><subsection id="H295B25FECDEE4C50B72E868C67169694"><enum>(g)</enum><header>List of
				fiduciaries</header><text>Each regional office of the Veterans Benefits
				Administration shall maintain a list of the following:</text>
							<paragraph id="HC3D91FADAC274DCFAA961A362F7FAD99"><enum>(1)</enum><text>The name and contact
				information of each fiduciary, including address, telephone number, and email
				address.</text>
							</paragraph><paragraph id="HDC2DD3C25040463FA58098CA7F510E48"><enum>(2)</enum><text>With respect to each
				fiduciary described in paragraph (1)—</text>
								<subparagraph id="HC7E1B79CC77E4CCAA74D091F9C0C7F92"><enum>(A)</enum><text>the date of the most
				recent background check and credit check performed by the Secretary under this
				section;</text>
								</subparagraph><subparagraph id="H3BB7A8E789A54E9D8D00B474125F3324"><enum>(B)</enum><text>the date that any bond
				was paid under this section;</text>
								</subparagraph><subparagraph id="H73E1DF2A2EAB4EDB9E0377A79A634B5E"><enum>(C)</enum><text>the name, address, and
				telephone number of each beneficiary the fiduciary acts on behalf of;
				and</text>
								</subparagraph><subparagraph id="H255656A1B96A4E3B8F4B7A7E4666B962"><enum>(D)</enum><text>the amount that the
				fiduciary controls with respect to each beneficiary described in subparagraph
				(C).</text>
								</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
			</subsection><subsection id="HDD074C8FED7047F99D0B273A5A3BF1E6"><enum>(e)</enum><header>Annual receipt of
			 payments</header>
				<paragraph id="H501DAFC982B24C24A69C16C644F1D86F"><enum>(1)</enum><header>In
			 general</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/5509">Section 5509</external-xref> of title 38, United States Code, is
			 amended—</text>
					<subparagraph id="H80811892D2F941E0878F04A4F83C9EA1"><enum>(A)</enum><text>in subsection
			 (a)——</text>
						<clause id="H9BC00F77181047EDADE6CDD17C45CB10"><enum>(i)</enum><text>by striking <quote>may
			 require a fiduciary to file a</quote> and inserting <quote>shall require a
			 fiduciary to file an annual</quote>; and</text>
						</clause><clause id="HFA7C6CB274A94BD0BA24B93C3D7F03B9"><enum>(ii)</enum><text>by adding at the end the
			 following new sentence: <quote>The Secretary shall transmit such annual report
			 or accounting to the beneficiary and any legal guardian of such
			 beneficiary.</quote>;</text>
						</clause></subparagraph><subparagraph id="H1C968FB0793143AD96FEF155D7A5C934"><enum>(B)</enum><text>by adding at the end the
			 following new subsections:</text>
						<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H7096B5B690A743A892504449C261DAE9" reported-display-style="italic" style="USC">
							<subsection id="H94D060551B0549159944EBCC0ED4E55C"><enum>(c)</enum><header>Matters
				included</header><text display-inline="yes-display-inline">Except as provided
				by subsection (f), an annual report or accounting under subsection (a) shall
				include the following:</text>
								<paragraph id="H67222FACEA064D99BC3F8FAF83BF3754"><enum>(1)</enum><text>For each beneficiary that
				a fiduciary acts on behalf of—</text>
									<subparagraph id="HDEC8C144DB9D42F0B7673BE22D793218"><enum>(A)</enum><text display-inline="yes-display-inline">the amount of the benefits of the
				beneficiary provided under any law administered by the Secretary accrued during
				the year, the amount spent, and the amount remaining; and</text>
									</subparagraph><subparagraph id="HE26020E332CA4EA2837EB92355C5E9F6"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
									</subparagraph></paragraph><paragraph id="HE2C1E73A6A5646959187F88C7A9ECAB0"><enum>(2)</enum><text>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, including—</text>
									<subparagraph id="H5617254159AF40EF879B5F1E8500A7CB"><enum>(A)</enum><text>the fiduciary being
				convicted of any crime;</text>
									</subparagraph><subparagraph id="H8ED0B8F79F844010B63DFD2DE6D4E2BD"><enum>(B)</enum><text>the fiduciary declaring
				bankruptcy; and</text>
									</subparagraph><subparagraph id="H5DAA30507A044EDB8A2E6838727ACC43"><enum>(C)</enum><text>any judgments entered
				against the fiduciary.</text>
									</subparagraph></paragraph></subsection><subsection commented="no" id="HAF91A8B254D046289835BB10222BA48F"><enum>(d)</enum><header>Random
				audits</header><text>The Secretary shall annually conduct random audits of
				fiduciaries who receive a commission pursuant to subsection 5502A(a)(1) of this
				title.</text>
							</subsection><subsection id="HD36F6BF9B68C47789ED06BF90C3914D5"><enum>(e)</enum><header>Status of
				fiduciary</header><text display-inline="yes-display-inline">If a fiduciary
				includes in the annual report events described in subsection (c)(2), the
				Secretary may take appropriate action to adjust the status of the fiduciary as
				the Secretary determines appropriate, including by revoking the fiduciary
				status of the fiduciary.</text>
							</subsection><subsection id="HA5059BAB69BF4F0CB714F23EA26A1B9C"><enum>(f)</enum><header>Caregivers and certain
				other fiduciaries</header><paragraph commented="no" display-inline="yes-display-inline" id="HDAE1341FC0AA4A5DA0A3C11AF02B9BC7"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HB590979F7B5647AB93E2FD2472E25F4F"><enum>(A)</enum><text>In carrying out this
				section, the Secretary shall ensure that a caregiver fiduciary is required only
				to file an annual report or accounting under subsection (a) with respect to the
				amount of the benefits of the beneficiary provided under any law administered
				by the Secretary—</text>
										<clause changed="added" committee-id="HVR00" id="H506155CD4E364151A886E27F8F1ECFCC" indent="up2" reported-display-style="italic"><enum>(i)</enum><text>spent on—</text>
											<subclause id="H1E2FE34C75234F97BECA26FE1A5E2FC9"><enum>(I)</enum><text>food and housing for the
				beneficiary; and</text>
											</subclause><subclause id="H6C2026CD80E14F9AA092CC6EA4B32439"><enum>(II)</enum><text>clothing, health-related
				expenses, recreation, and other personal items for the beneficiary; and</text>
											</subclause></clause><clause changed="added" committee-id="HVR00" id="HE46F6D221AEF4AE69FBB0B3855EE0B42" indent="up2" reported-display-style="italic"><enum>(ii)</enum><text>saved for the
				beneficiary.</text>
										</clause></subparagraph><subparagraph changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H2349481F2DFC43AFA09B239568FDB4DC" indent="up2" reported-display-style="italic"><enum>(B)</enum><text display-inline="yes-display-inline">The Secretary shall coordinate with the
				Under Secretary for Benefits and the Under Secretary for Health to—</text>
										<clause id="H8EA8DA5E809941C0A993E9124AA442D6"><enum>(i)</enum><text>minimize the frequency
				with which employees of the Department visit the home of a caregiver fiduciary
				and beneficiary; and</text>
										</clause><clause id="H08B2FF28294E43CDB7A58A8E52977D33"><enum>(ii)</enum><text>limit the extent of
				supervision by such Under Secretaries with respect to such a fiduciary and
				beneficiary.</text>
										</clause></subparagraph><subparagraph changed="added" committee-id="HVR00" id="HF356DD87E3004331879177D8061BEDBA" indent="up2" reported-display-style="italic"><enum>(C)</enum><text>In this paragraph, the
				term <quote>caregiver fiduciary</quote> means a fiduciary who—</text>
										<clause id="H3B3BB40C46804D76AD74BB937C016D52"><enum>(i)</enum><text display-inline="yes-display-inline">in addition to acting as a fiduciary for a
				beneficiary, is approved by the Secretary to be a provider of personal care
				services for the beneficiary under paragraph (3)(A)(i) of section 1720G(a) of
				this title;</text>
										</clause><clause id="H862FE6869808431D84CD89C698A61856"><enum>(ii)</enum><text>in carrying out such
				care services to such beneficiary, has undergone not less than four home visits
				under paragraph (9)(A) of such section; and</text>
										</clause><clause id="H22BA0F11238E483E9153A5A4C786B317"><enum>(iii)</enum><text>has not been required
				by the Secretary to take corrective action pursuant to paragraph (9)(C) of such
				section.</text>
										</clause></subparagraph></paragraph><paragraph changed="added" committee-id="HVR00" id="H2D35B03AF45D4F1DB70800AE0CDDEBC5" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>In carrying out this
				section, the Secretary may adjust the matters required under an annual report
				or accounting under subsection (a) with respect to a fiduciary whom the
				Secretary determines to have effectively protected the interests of the
				beneficiary over a sustained period.</text>
								</paragraph></subsection><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</subparagraph><subparagraph id="H8C88B70D9478481FA08C9423A56272B9"><enum>(C)</enum><text>by striking the section
			 heading and inserting the following: <quote><header-in-text level="section" style="USC">Annual reports and accountings of
			 fiduciaries</header-in-text></quote>.</text>
					</subparagraph></paragraph><paragraph id="HF80A7025FA5B47B8927885900E99038F"><enum>(2)</enum><header>Clerical
			 amendment</header><text>The table of sections 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:</text>
					<quoted-block changed="added" committee-id="HVR00" display-inline="no-display-inline" id="H08B00F030CD347D48615ACA3A300A6AF" reported-display-style="italic" style="USC">
						<toc changed="added" committee-id="HVR00" regeneration="no-regeneration" reported-display-style="italic">
							<toc-entry level="section">5509. Annual reports and accountings of
				fiduciaries.</toc-entry>
						</toc>
						<after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection><subsection commented="no" id="H116DEE04CFD84F37988F59D2CD9D8B56"><enum>(f)</enum><header>Repayment of misused
			 benefits</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/6107">Section 6107(a)(2)(C)</external-xref> of title 38, United States Code,
			 is amended by inserting before the period the following: <quote>, including by
			 the Secretary not acting in accordance with section 5507 of this
			 title</quote>.</text>
			</subsection><subsection id="HDAF117DB4312402FBFE801692F6C82DD"><enum>(g)</enum><header>Annual
			 reports</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/5510">Section 5510</external-xref> of title 38, United States Code, is amended
			 by striking <quote>The Secretary shall include in the Annual Benefits Report of
			 the Veterans Benefits Administration or the Secretary's Annual Performance and
			 Accountability Report </quote> and inserting <quote>Not later than July 1 of
			 each year, the Secretary shall submit to the Committees on Veterans’ Affairs of
			 the House of Representatives and the Senate a separate report
			 containing</quote>.</text>
			</subsection><subsection id="H3C4310D83CDE4E6ABA23155599101E16"><enum>(h)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than one year 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 comprehensive report on the
			 implementation of the amendments made by this Act, including—</text>
				<paragraph id="H8AC9D1D7E44D4F03BD36E68EFEED4F3C"><enum>(1)</enum><text>detailed information on
			 the establishment of new policies and procedures pursuant to such amendments
			 and training provided on such policies and procedures; and</text>
				</paragraph><paragraph id="H8A670FDEBBA64A2289977FC4E0FDEAAE"><enum>(2)</enum><text>a discussion of whether
			 the Secretary should provide fiduciaries with standardized financial software
			 to simplify reporting requirements.</text>
				</paragraph></subsection></section><section id="H4FF3597C94A143328FDB545CA785EC2E"><enum>5.</enum><header>Limitation on awards and
			 bonuses to employees of Department of Veterans Affairs</header><text display-inline="no-display-inline">For each of fiscal years 2014 through 2018,
			 the Secretary of Veterans Affairs may not pay more than $345,000,000 in awards
			 or bonuses under chapter 45 or 53 of title 5, United States Code, or any other
			 awards or bonuses authorized under such title.</text>
		</section></legis-body><official-title-amendment>Amend the title so as to read:
	 <quote>A bill to amend title 38, United States Code, to require the Secretary
	 of Veterans Affairs to include a notice of disagreement form in any notice of
	 decision issued for the denial of a benefit sought, to improve the supervision
	 of fiduciaries of veterans under the laws administered by the Secretary of
	 Veterans Affairs, and for other purposes.</quote>.</official-title-amendment>
	<endorsement display="yes">
		<action-date date="20130625">June 25, 2013</action-date>
		<action-desc>Reported with amendments, committed to the Committee of the
		  Whole House on the State of the Union, and ordered to be printed</action-desc>
	</endorsement>
</bill>


