[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2003 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2003

To amend title 38, United States Code, to clarify the applicability of 
   the prohibition on assignment of veterans benefits to agreements 
 regarding future receipt of compensation, pension, or dependency and 
            indemnity compensation, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 8, 2002

   Mr. Nelson of Florida (for himself, Mr. McCain, Ms. Landrieu, Mr. 
   Conrad, Mr. Bingaman, Mr. Breaux, and Mr. Johnson) introduced the 
 following bill; which was read twice and referred to the Committee on 
                           Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
To amend title 38, United States Code, to clarify the applicability of 
   the prohibition on assignment of veterans benefits to agreements 
 regarding future receipt of compensation, pension, or dependency and 
            indemnity compensation, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Benefits and Pensions 
Protection Act of 2002''.

SEC. 2. APPLICABILITY OF PROHIBITION ON ASSIGNMENT OF VETERANS BENEFITS 
              TO AGREEMENTS ON FUTURE RECEIPT OF CERTAIN BENEFITS.

    (a) In General.--Section 5301(a) of title 38, United States Code, 
is amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by designating the last sentence as paragraph (2) and 
        indenting such paragraph, as so designated, two ems from the 
        left margin; and
            (3) by adding at the end the following new paragraph:
    ``(3)(A) For purposes of this subsection, in any case where a 
beneficiary entitled to compensation, pension, or dependency and 
indemnity compensation enters into an agreement with another person 
under which agreement such other person acquires for consideration the 
right to receive payment of such compensation, pension, or dependency 
and indemnity compensation, as the case may be, whether by payment from 
the beneficiary to such other person, deposit into an account from 
which such other person may make withdrawals, or otherwise, such 
agreement shall be deemed to be an assignment and is prohibited.
    ``(B) Any agreement or arrangement for collateral for security for 
an agreement that is prohibited under subparagraph (A) is also 
prohibited.
    ``(C)(i) Any person who enters into an agreement that is prohibited 
under subparagraph (A), or an agreement or arrangement that is 
prohibited under subparagraph (B), shall be fined under title 18, 
imprisoned for not more than one year, or both.
    ``(ii) This subparagraph does not apply to a beneficiary with 
respect to compensation, pension, or disability and indemnity 
compensation to which the beneficiary is entitled under a law 
administered by the Secretary.''.
    (b) Effective Dates.--(1) Subparagraphs (A) and (B) of paragraph 
(3) of section 5301(a) of title 38, United States Code (as added by 
subsection (a) of this section), shall apply with respect to any 
agreement or arrangement described in such subparagraphs, whether 
entered into before, on, or after the date of the enactment of this 
Act, and any such agreement or arrangement entered into before the date 
of the enactment of this Act is void and unenforceable as of such date.
    (2) Subparagraph (C) of such paragraph shall apply with respect to 
any agreement or arrangement covered by such subparagraph that is 
entered into on or after the date of the enactment of this Act.
    (c) Outreach.--The Secretary of Veterans Affairs shall, during the 
five-year period beginning on the date of the enactment of this Act, 
carry out a program of outreach to inform veterans and other recipients 
or potential recipients of compensation, pension, or disability and 
indemnity compensation benefits under the laws administered by the 
Secretary of the prohibition on the assignability of such benefits 
under law. The program shall include information on various schemes to 
evade the prohibition, and means of avoiding such schemes.
    (d) Authorization of Appropriations.--There is hereby authorized to 
be appropriated for the Department of Veterans Affairs for each of 
fiscal years 2003 through 2007, $3,000,000 for purposes of carrying out 
the program of outreach required by subsection (c).
                                 <all>