II 110th CONGRESS 2d Session S. 2536 IN THE SENATE OF THE UNITED STATES January 22 (legislative day, January 3), 2008 Mrs. Hutchison 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 prohibit the Secretary of Veterans Affairs from collecting certain debts to the United States in the case of veterans who die as a result of a service-connected disability incurred or aggravated on active duty in a combat zone, and for other purposes.

1.

Short title

This Act may be cited as the Combat Veterans Debt Elimination Act of 2008.

2.

Prohibition on collection of certain indebtedness of veterans who die of service-connected disabilities arising from service on active duty in a combat zone

(a)

Authority

(1)

In general

Chapter 53 of title 38, United States Code, is amended by inserting after section 5302 the following new section:

5302A.

Prohibition on collection of indebtedness: certain debts of veterans who die of service-connected disability incurred or aggravated on active duty in a combat zone

(a)

Prohibition

The Secretary may not collect all or any part of an amount owed to the United States by a veteran described in subsection (b) under any program under the laws administered by the Secretary (other than a program referred to in subsection (c)) if the Secretary determines, in the Secretary's discretion, that the termination of collection is in the best interest of the United States. (b)

Covered veterans

A veteran described in this subsection is any veteran who dies as a result of a service-connected disability incurred or aggravated while serving in a theater of combat operations (as determined by the Secretary in consultation with the Secretary of Defense) in a war after the Persian Gulf War or in combat against a hostile force during a period of hostilities (as that term is defined in section 1712A(a)(2)(B) of this title) after September 11, 2001. (c)

Inapplicability to housing and small business benefit programs

The authority in subsection (a) shall not apply to any amounts owed the United States under any program carried out under chapter 37 of this title.

. (2)

Clerical amendment

The table of sections at the beginning of chapter 53 of such title is amended by inserting after the item relating to section 5302 the following new item: 5302A. Prohibition on collection of indebtedness: certain debts of veterans who die of service-connected disability incurred or aggravated on active duty in a combat zone. . (b)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to collections of indebtedness of veterans who die on or after September 11, 2001.