[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3473 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 3473

   To increase outdated death gratuities and funeral allowances for 
 Federal civilian employees killed in the line of duty, to expand the 
  scope of eligible beneficiaries, to codify tax treatment, to change 
   offset requirements, to harmonize death gratuities across Federal 
                   agencies, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 17, 2016

 Ms. Mikulski (for herself, Mr. Cardin, and Mr. Warner) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
   To increase outdated death gratuities and funeral allowances for 
 Federal civilian employees killed in the line of duty, to expand the 
  scope of eligible beneficiaries, to codify tax treatment, to change 
   offset requirements, to harmonize death gratuities across Federal 
                   agencies, 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 ``Death Gratuity Equity Act of 2016''.

SEC. 2. INCREASING THE DEATH GRATUITY FOR A FEDERAL CIVILIAN EMPLOYEE 
              KILLED IN THE LINE OF DUTY.

    (a) Amendment to Title 5.--Subchapter VII of chapter 55 of title 5, 
United States Code, is amended by adding at the end the following:
``Sec. 5571. Certain employee death gratuities payable by reason of 
              death of a Federal civilian employee resulting from an 
              injury sustained in the line of duty
    ``(a) Definitions.--In this section--
            ``(1) the term `child'--
                    ``(A) includes--
                            ``(i) a natural child; and
                            ``(ii) an adopted child; and
                    ``(B) does not include a stepchild who has not been 
                adopted by the applicable civilian employee; and
            ``(2) the term `civilian employee' means an individual who 
        the Secretary of Labor has determined is an employee, as 
        defined in section 8101(1).
    ``(b) Death Gratuity Authorized.--
            ``(1) In general.--Notwithstanding section 8116, and in 
        addition to any payment made under subchapter I of chapter 81, 
        the head of an agency shall pay from appropriations made 
        available for salaries and expenses of that agency a death 
        gratuity for the death of a civilian employee of that agency 
        occurring on or after the date of enactment of this section if 
        the death of the civilian employee--
                    ``(A) resulted from an injury sustained in the line 
                of duty; and
                    ``(B) did not result from--
                            ``(i) natural causes; or
                            ``(ii) serious and willful misconduct by 
                        the civilian employee.
            ``(2) Payment.--A death gratuity paid under paragraph (1) 
        shall be--
                    ``(A) in the amount described in subsection (c); 
                and
                    ``(B) paid to a person described in subsection (d).
    ``(c) Amounts Available.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        amount of a death gratuity paid under this section shall be--
                    ``(A) $100,000 per civilian employee; and
                    ``(B) adjusted annually on March 1 of each year by 
                the amount determined by the Secretary of Labor to 
                represent the percentage difference between the 
                Consumer Price Index (all items; United States city 
                average) published for December of the preceding year 
                and that price index published for the December of the 
                year before the preceding year, adjusted to the nearest 
                \1/10\ of 1 percent.
            ``(2) Local compensation plan.--The amount of a death 
        gratuity paid in relation to the death of a civilian employee 
        compensated under a local compensation plan established under 
        section 408 of the Foreign Service Act of 1980 (22 U.S.C. 3968) 
        shall be determined by regulations promulgated by the Secretary 
        of State.
    ``(d) Execution of Payment.--
            ``(1) Establishment of claim.--Upon the establishment of a 
        valid claim for a death gratuity under this section, payment 
        shall be made--
                    ``(A) to a person who--
                            ``(i) survives a civilian employee on the 
                        date of the death of the civilian employee; and
                            ``(ii) is alive on the date that title to 
                        the payment arises; and
                    ``(B) in the order of precedence established under 
                paragraph (2).
            ``(2) Order of payment.--The order of precedence 
        established under this paragraph is as follows:
                    ``(A)(i) To a beneficiary designated by the 
                civilian employee in a signed and witnessed writing 
                that--
                            ``(I) is received by the agency employing 
                        the civilian employee before the date of the 
                        death of the civilian employee; and
                            ``(II) specifies that the beneficiary shall 
                        receive an amount payable under this section.
                    ``(ii) A will or other document that is not 
                executed and filed as described in clause (i) shall not 
                constitute a writing under clause (i) and such a will 
                or other document shall have no force or effect.
                    ``(B) If there is no beneficiary designated under 
                subparagraph (A), to the surviving spouse of the 
                civilian employee.
                    ``(C) If subparagraphs (A) and (B) do not apply, 
                to--
                            ``(i) the child or children of the civilian 
                        employee; and
                            ``(ii) any descendants of a deceased child 
                        or children of the civilian employee by 
                        representation.
                    ``(D) If subparagraphs (A), (B), and (C) do not 
                apply, to the surviving parent or parents of the 
                civilian employee.
                    ``(E) If subparagraphs (A) through (D) do not 
                apply, to the duly appointed executor or administrator 
                of the estate of the civilian employee.
                    ``(F) If subparagraphs (A) through (E) do not 
                apply, to the person entitled to the payment under the 
                laws of the domicile of the civilian employee on the 
                date of the death of the civilian employee.
    ``(e) Payment Not Gross Income.--A payment under this section shall 
not be considered gross income of a person described in subsection 
(d)(2) under section 61 of the Internal Revenue Code of 1986.''.
    (b) Amendments to Title 49.--Section 40122(g)(2) of title 49, 
United States Code, is amended--
            (1) by redesignating subparagraphs (C) through (J) as 
        subparagraphs (D) through (K), respectively; and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) section 5571, relating to a death gratuity 
                resulting from an injury sustained in the line of 
                duty;''.
    (c) Technical and Conforming Amendments.--Chapter 55 of title 5, 
United States Code, is amended--
            (1) in the heading for subchapter VII, by striking 
        ``EMPLOYEES'' and inserting ``PERSONS AND PAYMENTS FOR 
        DISABILITY OR DEATH''; and
            (2) in the table of sections--
                    (A) by striking the item relating to subchapter VII 
                and inserting the following:

    ``subchapter vii--payments to missing persons and payments for 
                         disability or death'';

                and
                    (B) by inserting after the item relating to section 
                5570 the following:

``5571. Certain employee death gratuities payable by reason of death of 
                            a Federal civilian employee resulting from 
                            an injury sustained in the line of duty.''.

SEC. 3. REPEAL OF 1996 DEATH GRATUITY PAYMENT AUTHORITY.

    Section 651 of the Treasury, Postal Service, and General Government 
Appropriations Act, 1997 (5 U.S.C. 8133 note; Public Law 104-208) is 
repealed.

SEC. 4. FUNERAL AND BURIAL EXPENSES.

    (a) In General.--Section 8134 of title 5, United States Code, is 
amended by striking subsection (a) and inserting the following:
    ``(a)(1) For deaths occurring on or after the date of enactment of 
the Death Gratuity Equity Act of 2016, if death results from an injury 
sustained in the performance of duty, the United States shall pay, to 
the personal representative of the deceased or otherwise, funeral and 
burial expenses not to exceed $8,800, in the discretion of the 
Secretary of Labor.
    ``(2) The maximum payment permitted under paragraph (1) shall be 
adjusted annually on March 1 of each year in accordance with the 
adjustment described in section 8146a.''.
    (b) Applicability.--Section 8134(a) of title 5, United States Code, 
as in effect on the day before the date of enactment of this Act, shall 
apply to a death occurring before the date of enactment of this Act 
without regard to whether payment is made before, on, or after the date 
of enactment of this Act.

SEC. 5. FEDERAL EMPLOYEES' COMPENSATION ACT DEATH GRATUITY.

    (a) In General.--Section 8102a of title 5, United States Code, is 
amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Death Gratuity Authorized.--
            ``(1) In general.--
                    ``(A) Payment.--Except as provided in paragraph 
                (2), for deaths occurring on or after the date of 
                enactment of the Death Gratuity Equity Act of 2016, the 
                United States shall pay a death gratuity of $100,000 to 
                or for the eligible survivor under subsection (d) 
                immediately upon receiving official notification of the 
                death of an employee who dies of injuries incurred in 
                connection with the service of that employee with an 
                Armed Force in a contingency operation.
                    ``(B) Adjustment.--The amount under subparagraph 
                (A) shall be adjusted annually on March 1 of each year 
                by the amount determined by the Secretary of Labor to 
                represent the percentage difference between the 
                Consumer Price Index (all items; United States city 
                average) published for December of the preceding year 
                and that price index published for the December of the 
                year before the preceding year, adjusted to the nearest 
                \1/10\ of 1 percent.
                    ``(C) No reduction.--The death gratuity payable 
                under subparagraph (A) shall not be reduced by the 
                amount of any other death gratuity provided under any 
                other law of the United States that is based on the 
                same death.
            ``(2) Compensation for noncitizens and nonresidents.--For 
        claims arising under section 8137, the amount of the death 
        gratuity shall be subject to that section and the regulations 
        promulgated under that section.'';
            (2) by striking subsection (c);
            (3) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively; and
            (4) in subsection (c), as so redesignated, by adding at the 
        end the following:
            ``(7) If there are no eligible survivors, as described in 
        paragraphs (1) through (6), and the employee has not designated 
        another person to receive an amount payable under this section, 
        that amount shall be paid to the personal representative of the 
        estate of the employee.''.
    (b) Applicability.--Section 8102a of title 5, United States Code, 
as in effect on the day before the date of enactment of this Act, shall 
apply to a death occurring before the date of enactment of this Act 
without regard to whether payment is made before, on, or after the date 
of enactment of this Act.

SEC. 6. AGENCY GRATUITY FOR DEATHS SUSTAINED IN THE PERFORMANCE OF DUTY 
              ABROAD.

    Section 413 of the Foreign Service Act of 1980 (22 U.S.C. 3973) is 
amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking 
                ``dependents'' and inserting ``beneficiary''; and
                    (B) in the second sentence, by inserting ``, except 
                as provided in subsection (e)'' after ``payable from 
                any source'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Executive Agencies.--The head of an executive agency shall, 
pursuant to guidance issued under subsection (c), make a death gratuity 
payment authorized by this section to the surviving beneficiary of--
            ``(1) any employee of that agency who dies as a result of 
        injuries sustained in the performance of duty abroad while 
        subject to the authority of the chief of mission pursuant to 
        section 207; or
            ``(2) an individual in a special category serving in an 
        uncompensated capacity for that agency abroad in support of a 
        diplomatic mission, as identified in guidance issued under 
        subsection (c), who dies as a result of injuries sustained in 
        the performance of duty abroad.'';
            (3) by amending subsection (d) to read as follows:
    ``(d) Eligibility Under Chapter 81 of Title 5, United States 
Code.--A death gratuity payment may be made under this section only if 
the death is determined by the Secretary of Labor to have resulted from 
an injury (excluding a disease proximately caused by the employment) 
sustained in the performance of duty under section 8102 of title 5, 
United States Code.'';
            (4) by redesignating subsection (e) as subsection (g);
            (5) by inserting after subsection (d) the following:
    ``(e) Offset.--For deaths occurring on or after the date of 
enactment of this subsection, the death gratuity payable under this 
section shall be reduced by the amount of any death gratuity provided 
under section 5571 of title 5, United States Code, based on the same 
death.
    ``(f) Tax Treatment.--A payment under this section shall not be 
considered gross income of a surviving beneficiary under section 61 of 
the Internal Revenue Code of 1986.''; and
            (6) in subsection (g), as so redesignated, by amending 
        paragraph (2) to read as follows:
            ``(2) the term `surviving beneficiary' means the person 
        identified under the order of precedence established under 
        section 5571(d)(2) of title 5, United States Code.''.

SEC. 7. EMERGENCY SUPPLEMENTAL AUTHORIZATION IN THE EVENT OF THE 
              INABILITY OF AN AGENCY TO MEET THE REQUIREMENTS OF THIS 
              ACT.

    (a) In General.--If the head of an agency (as defined in section 
5561 of title 5, United States Code) determines, with the concurrence 
of the Director of the Office of Management and Budget, that a natural 
disaster, act of terrorism, or other incident results in the inability 
of the agency to meet the requirements of this Act and the amendments 
made by this Act, additional amounts are authorized to be appropriated 
to make additional payments--
            (1) under--
                    (A) section 5571(b) of title 5, United States Code, 
                as added by section 2(a);
                    (B) section 8102a of title 5, United States Code, 
                as amended by section 5; and
                    (C) section 413 of the Foreign Service Act of 1980 
                (22 U.S.C. 3973), as amended by section 6; and
            (2) that would exceed the amount available to the agency 
        without the additional appropriations.
    (b) Additional Payments.--A payment authorized under subsection (a) 
may be made only if additional appropriations are provided for a 
purpose described in that subsection.
    (c) Congressional Vote.--It is the sense of Congress that Congress 
should vote on a request for additional appropriations under this 
section not later than 30 days after the date of submission of such a 
request to Congress.
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