[Congressional Record Volume 156, Number 90 (Wednesday, June 16, 2010)]
[Senate]
[Pages S4993-S4994]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. AKAKA:
  S. 3499. A bill to amend title 38, United States Code, to require 
fiduciaries of individuals receiving benefits under laws administered 
by the Secretary of Veterans Affairs to authorize the Secretary to 
obtain financial records with respect to such individuals for purposes 
of administering such laws, and for other purposes; to the Committee on 
Veterans' Affairs.
  Mr. AKAKA. Mr. President, as Chairman of the Senate Committee on 
Veterans' Affairs, I introduce legislation that would provide VA with 
the means to better protect those VA beneficiaries who have 
fidicuiaries appointed to look after their affairs. This

[[Page S4994]]

bill would improve oversight of fiduciaries by authorizing VA to access 
records at financial institutions for up to 3 years.
  Under current law, VA has a 3-month time limit on the authorization 
to view financial records maintained by a fiduciary, a time period 
which has proven to be inadequate. In addition, VA lacks the authority 
to compel a fiduciary to provide a Social Security number or other 
identifying information needed to track financial records.
  The legislation I am introducing today is modeled on Social Security 
laws and procedures. It will help VA ensure that veterans' monies are 
not being misused. It would allow VA to require that any person 
appointed or recognized by VA as a fiduciary be required to sign an 
authorization for release of records which would be in effect for up to 
3 years. If a fiduciary refuses to sign or revokes an authorization, VA 
would be authorized to remove the fiduciary.
  The Committee held a hearing on pending legislation on May 19, 2010, 
and witnesses from The American Legion and the Veterans of Foreign Wars 
spoke on the need to strengthen VA's oversight of fiduciaries.
  I urge our colleagues to support this bill to protect VA 
beneficiaries who need assistance with financial management.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3499

       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 ``Fiduciary Benefits Oversight 
     Act of 2010''.

     SEC. 2. ACCESS BY SECRETARY OF VETERANS AFFAIRS TO FINANCIAL 
                   RECORDS OF INDIVIDUALS REPRESENTED BY 
                   FIDUCIARIES AND RECEIVING BENEFITS UNDER LAWS 
                   ADMINISTERED BY SECRETARY.

       Section 5502 of title 38, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(f)(1) The Secretary may require any person appointed or 
     recognized as a fiduciary for a Department beneficiary under 
     this section to provide authorization for the Secretary to 
     obtain (subject to the cost reimbursement requirements of 
     section 1115(a) of the Right to Financial Privacy Act of 1978 
     (12 U.S.C. 3415)) from any financial institution any 
     financial record held by the institution with respect to the 
     fiduciary or the beneficiary whenever the Secretary 
     determines that the financial record is necessary--
       ``(A) for the administration of a program administered by 
     the Secretary; or
       ``(B) in order to safeguard the beneficiary's benefits 
     against neglect, misappropriation, misuse, embezzlement, or 
     fraud.
       ``(2) Notwithstanding section 1104(a)(1) of such Act (12 
     U.S.C. 3404(a)(1)), an authorization provided by a fiduciary 
     under paragraph (1) with respect to a beneficiary shall 
     remain effective until the earliest of--
       ``(A) the approval by a court or the Secretary of a final 
     accounting of payment of benefits under any law administered 
     by the Secretary to a fiduciary on behalf of such 
     beneficiary;
       ``(B) in the absence of any evidence of neglect, 
     misappropriation, misuse, embezzlement, or fraud, the express 
     revocation by the fiduciary of the authorization in a written 
     notification to the Secretary; or
       ``(C) the date that is three years after the date of the 
     authorization.
       ``(3)(A) An authorization obtained by the Secretary 
     pursuant to this subsection shall be considered to meet the 
     requirements of the Right to Financial Privacy Act of 1978 
     (12 U.S.C. 3401 et seq.) for purposes of section 1103(a) of 
     such Act (12 U.S.C. 3403(a)), and need not be furnished to 
     the financial institution, notwithstanding section 1104(a) of 
     such Act (12 U.S.C. 3404(a)), if the Secretary provides a 
     copy of the authorization to the financial institution.
       ``(B) The certification requirements of section 1103(b) of 
     such Act (12 U.S.C. 3403(b)) shall not apply to requests by 
     the Secretary pursuant to an authorization provided under 
     this subsection.
       ``(C) A request for a financial record by the Secretary 
     pursuant to an authorization provided by a fiduciary under 
     this subsection is deemed to meet the requirements of section 
     1104(a)(3) of such Act (12 U.S.C. 3404(a)(3)) and the matter 
     in section 1102 of such Act (12 U.S.C. 3402) that precedes 
     paragraph (1) of such section if such request identifies the 
     fiduciary and the beneficiary concerned.
       ``(D) The Secretary shall inform any person who provides 
     authorization under this subsection of the duration and scope 
     of the authorization.
       ``(E) If a fiduciary of a Department beneficiary refuses to 
     provide, or revokes, any authorization to permit the 
     Secretary to obtain from any financial institution any 
     financial record concerning benefits paid by the Secretary 
     for such beneficiary, the Secretary may, on that basis, 
     revoke the appointment or the recognition of the fiduciary 
     for such beneficiary and for any other Department beneficiary 
     for whom such fiduciary has been appointed or recognized. If 
     the appointment or recognition of a fiduciary is revoked, 
     benefits may be paid as provided in subsection (d).
       ``(4) For purposes of section 1113(d) of such Act (12 
     U.S.C. 3413(d)), a disclosure pursuant to this subsection 
     shall be considered a disclosure pursuant to a Federal 
     statute.
       ``(5) In this subsection:
       ``(A) The term `fiduciary' includes any person appointed or 
     recognized to receive payment of benefits under any law 
     administered by the Secretary on behalf of a Department 
     beneficiary.
       ``(B) The term `financial institution' has the meaning 
     given such term in section 1101 of such Act (12 U.S.C. 3401), 
     except that such term shall also include any benefit 
     association, insurance company, safe deposit company, money-
     market mutual fund, or similar entity authorized to do 
     business in any State.
       ``(C) The term `financial record' has the meaning given 
     such term in such section.''.

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