II 110th CONGRESS 2d Session S. 2550 IN THE SENATE OF THE UNITED STATES January 23, 2008 Mrs. Hutchison (for herself, Mr. Johnson, and Mr. Cornyn) 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 owed to the United States by members of the Armed Forces and veterans who die as a result of an injury 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 members of the Armed Forces and veterans who die of injury incurred or aggravated in service on active duty in a combat zone

(a)

Prohibition

(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 members of the Armed Forces and veterans who die of injury 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 member of the Armed Forces or veteran described in subsection (b) under any program under the laws administered by the Secretary, other than a program referred to in subsection (c). (b)

Covered individuals

A member of the Armed Forces or veteran described in this subsection is any member or veteran who dies as a result of an injury 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 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 prohibition 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 members of the Armed Forces and veterans who die of injury 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 members of the Armed Forces and veterans who die on or after September 11, 2001.