[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6580 Enrolled Bill (ENR)]

        H.R.6580

                       One Hundred Tenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Thursday,
            the third day of January, two thousand and eight


                                 An Act


 
  To ensure the fair treatment of a member of the Armed Forces who is 
discharged from the Armed Forces, at the request of the member, pursuant 
to the Department of Defense policy permitting the early discharge of a 
 member who is the only surviving child in a family in which the father 
  or mother, or one or more siblings, served in the Armed Forces and, 
   because of hazards incident to such service, was killed, died as a 
 result of wounds, accident, or disease, is in a captured or missing in 
action status, or is permanently disabled, to amend the Internal Revenue 
Code of 1986 to repeal the dollar limitation on contributions to funeral 
                     trusts, 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; TABLE OF CONTENTS.
    (a) Short Title.--This Act may be cited as the ``Hubbard Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Continued payment of bonuses and similar benefits for members of 
          the Armed Forces who receive sole survivorship discharge.
Sec. 3. Availability of separation pay for members of the Armed Forces 
          with less than six years of active service who receive sole 
          survivorship discharge.
Sec. 4. Transitional health care for members of the Armed Forces who 
          receive sole survivorship discharge.
Sec. 5. Transitional commissary and exchange benefits for members of the 
          Armed Forces who receive sole survivorship discharge.
Sec. 6. Veterans benefits for members of the Armed Forces who receive 
          sole survivorship discharge.
Sec. 7. Unemployment compensation for members of the Armed Forces who 
          receive sole survivorship discharge.
Sec. 8. Preference-eligible status for members of the Armed Forces who 
          receive sole survivorship discharge.
Sec. 9. Repeal of dollar limitation on contributions to funeral trusts.
Sec. 10. Effective dates.
SEC. 2. CONTINUED PAYMENT OF BONUSES AND SIMILAR BENEFITS FOR MEMBERS 
OF THE ARMED FORCES WHO RECEIVE SOLE SURVIVORSHIP DISCHARGE.
    (a) Effect of Sole Survivorship Discharge.--Section 303a(e) of 
title 37, United States Code, is amended--
        (1) in paragraph (1), by striking ``A member'' and inserting 
    ``(A) Except as provided in paragraph (2), a member'';
        (2) by redesignating paragraph (2) as subparagraph (B) of 
    paragraph (1); and
        (3) by inserting after paragraph (1), as so amended, the 
    following new paragraph (2):
    ``(2)(A) If a member of the uniformed services receives a sole 
survivorship discharge, the Secretary concerned--
        ``(i) shall not require repayment by the member of the unearned 
    portion of any bonus, incentive pay, or similar benefit previously 
    paid to the member; and
        ``(ii) may grant an exception to the requirement to terminate 
    the payment of any unpaid amounts of a bonus, incentive pay, or 
    similar benefit if the Secretary concerned determines that 
    termination of the payment of the unpaid amounts would be contrary 
    to a personnel policy or management objective, would be against 
    equity and good conscience, or would be contrary to the best 
    interests of the United States.
    ``(B) In this paragraph, the term `sole survivorship discharge' 
means the separation of a member from the Armed Forces, at the request 
of the member, pursuant to the Department of Defense policy permitting 
the early separation of a member who is the only surviving child in a 
family in which--
        ``(i) the father or mother or one or more siblings--
            ``(I) served in the Armed Forces; and
            ``(II) was killed, died as a result of wounds, accident, or 
        disease, is in a captured or missing in action status, or is 
        permanently 100 percent disabled or hospitalized on a 
        continuing basis (and is not employed gainfully because of the 
        disability or hospitalization); and
        ``(ii) the death, status, or disability did not result from the 
    intentional misconduct or willful neglect of the parent or sibling 
    and was not incurred during a period of unauthorized absence.''.
    (b) Sense of Congress.--In light of the extraordinary discretion 
granted to the Secretary of a military department by statute and policy 
to continue to pay the unpaid amounts of a bonus, incentive pay, or 
similar benefit otherwise due to a member of the Armed Forces under the 
jurisdiction of the Secretary who receives a sole survivorship 
discharge, it is the sense of Congress that the Secretaries of the 
military departments should aggressively use such discretion to the 
benefit of members receiving a sole survivorship discharge.
SEC. 3. AVAILABILITY OF SEPARATION PAY FOR MEMBERS OF THE ARMED FORCES 
WITH LESS THAN SIX YEARS OF ACTIVE SERVICE WHO RECEIVE SOLE 
SURVIVORSHIP DISCHARGE.
    Section 1174 of title 10, United States Code, is amended--
        (1) by redesignating subsection (i) as subsection (j); and
        (2) by inserting after subsection (h) the following new 
    subsection:
    ``(i) Special Rule for Members Receiving Sole Survivorship 
Discharge.--(1) A member of the Armed Forces who receives a sole 
survivorship discharge shall be entitled to separation pay under this 
section even though the member has completed less than six years of 
active service immediately before that discharge. Subsection (e) shall 
not apply to a member who receives a sole survivorship discharge.
    ``(2) The amount of the separation pay to be paid to a member 
pursuant to this subsection shall be based on the years of active 
service actually completed by the member before the member's sole 
survivorship discharge.
    ``(3) In this subsection, the term `sole survivorship discharge' 
means the separation of a member from the Armed Forces, at the request 
of the member, pursuant to the Department of Defense policy permitting 
the early separation of a member who is the only surviving child in a 
family in which--
        ``(A) the father or mother or one or more siblings--
            ``(i) served in the Armed Forces; and
            ``(ii) was killed, died as a result of wounds, accident, or 
        disease, is in a captured or missing in action status, or is 
        permanently 100 percent disabled or hospitalized on a 
        continuing basis (and is not employed gainfully because of the 
        disability or hospitalization); and
        ``(B) the death, status, or disability did not result from the 
    intentional misconduct or willful neglect of the parent or sibling 
    and was not incurred during a period of unauthorized absence.''.
SEC. 4. TRANSITIONAL HEALTH CARE FOR MEMBERS OF THE ARMED FORCES WHO 
RECEIVE SOLE SURVIVORSHIP DISCHARGE.
    Section 1145(a)(2) of title 10, United States Code, is amended by 
adding at the end the following new subparagraph:
        ``(E) A member who receives a sole survivorship discharge (as 
    defined in section 1174(i) of this title).''.
SEC. 5. TRANSITIONAL COMMISSARY AND EXCHANGE BENEFITS FOR MEMBERS OF 
THE ARMED FORCES WHO RECEIVE SOLE SURVIVORSHIP DISCHARGE.
    Section 1146 of title 10, United States Code, is amended--
        (1) by striking ``The Secretary of Defense'' and inserting the 
    following:
    ``(a) Benefits for Members Involuntarily Separated.--The Secretary 
of Defense''; and
        (2) by adding at the end the following new subsection:
    ``(b) Benefits for Members Receiving Sole Survivorship Discharge.--
A member of the Armed Forces who receives a sole survivorship discharge 
(as defined in section 1174(i) of this title) is entitled to continue 
to use commissary and exchange stores and morale, welfare, and 
recreational facilities in the same manner as a member on active duty 
during the two-year period beginning on the later of the following 
dates:
        ``(1) The date of the separation of the member.
        ``(2) The date on which the member is first notified of the 
    members entitlement to benefits under this section.''.
SEC. 6. VETERANS BENEFITS FOR MEMBERS OF THE ARMED FORCES WHO RECEIVE 
SOLE SURVIVORSHIP DISCHARGE.
    (a) Housing Loan Benefits.--Section 3702(a)(2) of title 38, United 
States Code, is amended by adding at the end the following new 
subparagraph:
        ``(F) Each veteran who was discharged or released from a period 
    of active duty of 90 days or more by reason of a sole survivorship 
    discharge (as that term is defined in section 1174(i) of title 
    10).''.
    (b) Employment and Training.--Section 4211(4) of such title is 
amended--
        (1) in subparagraph (B), by striking ``or'' at the end;
        (2) in subparagraph (C), by striking the period at the end and 
    inserting ``; or''; and
        (3) by adding at the end the following new subparagraph:
            ``(D) was discharged or released from active duty by reason 
        of a sole survivorship discharge (as that term is defined in 
        section 1174(i) of title 10).''.
    (c) Existing Basic Educational Assistance.--
        (1) Service on active duty.--Section 3011(a)(1) of such title 
    is amended--
            (A) in subparagraph (A)(ii), by inserting after ``service-
        connected disability,'' the following: ``by reason of a sole 
        survivorship discharge (as that term is defined in section 
        1174(i) of title 10),'';
            (B) in subparagraph (B)(ii), by inserting after ``service-
        connected disability,'' the following: ``by reason of a sole 
        survivorship discharge (as that term is defined in section 
        1174(i) of title 10),''; and
            (C) in subparagraph (C)(iii)(II), by inserting after 
        ``service-connected disability,'' the following: ``by reason of 
        a sole survivorship discharge (as that term is defined in 
        section 1174(i) of title 10),''.
        (2) Service in the selected reserve.--Section 3012(b)(1) of 
    such title is amended--
            (A) in subparagraph (A)--
                (i) by striking ``, or (vi)'' and inserting ``, (vi)''; 
            and
                (ii) by inserting before the period at the end the 
            following: ``, or (vii) by reason of a sole survivorship 
            discharge (as that term is defined in section 1174(i) of 
            title 10)''; and
            (B) in subparagraph (B)--
                (i) in clause (i), by inserting after ``service-
            connected disability,'' the following: ``by reason of a 
            sole survivorship discharge (as that term is defined in 
            section 1174(i) of title 10),''; and
                (ii) in clause (ii)--

                    (I) by striking ``, or (VI)'' and inserting ``, 
                (VI)''; and
                    (II) by inserting before the period at the end the 
                following: ``, or (VII) by reason of a sole 
                survivorship discharge (as that term is defined in 
                section 1174(i) of title 10)''.

SEC. 7. UNEMPLOYMENT COMPENSATION FOR MEMBERS OF THE ARMED FORCES WHO 
RECEIVE SOLE SURVIVORSHIP DISCHARGE.
    Section 8521(a)(1)(B)(ii)(III) of title 5, United States Code, is 
amended by striking ``hardship,'' and inserting ``hardship (including 
pursuant to a sole survivorship discharge, as that term is defined in 
section 1174(i) of title 10),''.
SEC. 8. PREFERENCE-ELIGIBLE STATUS FOR MEMBERS OF THE ARMED FORCES WHO 
RECEIVE SOLE SURVIVORSHIP DISCHARGE.
    Section 2108(3) of title 5, United States Code, is amended--
        (1) in subparagraph (F), by striking ``and'' at the end;
        (2) in subparagraph (G), by inserting ``and'' at the end; and
        (3) by inserting after subparagraph (G) the following:
            ``(H) a veteran who was discharged or released from a 
        period of active duty by reason of a sole survivorship 
        discharge (as that term is defined in section 1174(i) of title 
        10);''.
SEC. 9. REPEAL OF DOLLAR LIMITATION ON CONTRIBUTIONS TO FUNERAL TRUSTS.
    (a) In General.--Subsection (c) of section 685 of the Internal 
Revenue Code of 1986 (relating to treatment of funeral trusts) is 
repealed.
    (b) Conforming Amendment.--Subsections (d), (e), and (f) of such 
section are redesignated as subsections (c), (d), and (e), 
respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
  SEC. 10. EFFECTIVE DATES.
    (a) Retroactive Effective Date.--Except as provided in subsection 
(b) and section 9, this Act and the amendments made by this Act shall 
apply with respect to any sole survivorship discharge granted after 
September 11, 2001.
    (b) Date of Enactment Effective Date for Certain Amendments.--The 
amendments made by sections 4,  7, and 8 shall apply with respect to 
any sole survivorship discharge granted after the date of the enactment 
of this Act.
    (c) Sole Survivorship Discharge Defined.--In this section, the term 
``sole survivorship discharge'' means the separation of a member from 
the Armed Forces, at the request of the member, pursuant to the 
Department of Defense policy permitting the early separation of a 
member who is the only surviving child in a family in which--
        (1) the father or mother or one or more siblings--
            (A) served in the Armed Forces; and
            (B) was killed, died as a result of wounds, accident, or 
        disease, is in a captured or missing in action status, or is 
        permanently 100 percent disabled or hospitalized on a 
        continuing basis (and is not employed gainfully because of the 
        disability or hospitalization); and
        (2) the death, status, or disability did not result from the 
    intentional misconduct or willful neglect of the parent or sibling 
    and was not incurred during a period of unauthorized absence.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.