[Congressional Record (Bound Edition), Volume 150 (2004), Part 15]
[House]
[Pages 21268-21274]
[From the U.S. Government Publishing Office, www.gpo.gov]




       SERVICEMEMBERS AND VETERANS LEGAL PROTECTIONS ACT OF 2004

  Mr. SMITH of New Jersey. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 4658) to amend the Servicemembers Civil Relief Act 
to make certain improvements and technical corrections to that Act, as 
amended.
  The Clerk read as follows:

                               H.R. 4658

       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 
     ``Servicemembers and Veterans Legal Protections Act of 
     2004''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

        TITLE I--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

Sec. 101. Clarification of meaning of ``judgment'' as used in the Act.
Sec. 102. Requirements relating to waiver of rights under the Act.
Sec. 103. Right of servicemember plaintiffs to request stay of civil 
              proceedings.
Sec. 104. Termination of leases.
Sec. 105. Prevention of double taxation of certain servicemembers.

              TITLE II--EMPLOYMENT AND REEMPLOYMENT RIGHTS

             Subtitle A--Extension of Health Care Coverage

Sec. 201. Two-year period of continuation of employer-sponsored health 
              care coverage.
Sec. 202. Reinstatement of reporting requirements.

                       Subtitle B--Other Matters

Sec. 211. Requirement for employers to provide notice of rights and 
              duties under USERRA.
Sec. 212. Demonstration project for referral of USERRA claims against 
              Federal agencies to the Office of Special Counsel.

               TITLE III--MATTERS RELATING TO FIDUCIARIES

Sec. 301. Definition of fiduciary.
Sec. 302. Inquiry, investigations, and qualification of fiduciaries.
Sec. 303. Misuse of benefits by fiduciaries.
Sec. 304. Additional protections for beneficiaries with fiduciaries.
Sec. 305. Annual report.
Sec. 306. Annual adjustment in benefits thresholds.
Sec. 307. Effective dates.

                        TITLE IV--OTHER MATTERS

Sec. 401. Inventory of medical waste management activities at 
              Department health-care facilities.
Sec. 402. Technical amendments to education program provisions.

        TITLE I--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT

     SEC. 101. CLARIFICATION OF MEANING OF ``JUDGMENT'' AS USED IN 
                   THE ACT.

       Section 101 of the Servicemembers Civil Relief Act (50 
     U.S.C. App. 511) is amended by adding at the end the 
     following new paragraph:
       ``(9) Judgment.--The term `judgment' means any judgment, 
     decree, order, or ruling, final or temporary.''.

     SEC. 102. REQUIREMENTS RELATING TO WAIVER OF RIGHTS UNDER THE 
                   ACT.

       Section 107 of the Servicemembers Civil Relief Act (50 
     U.S.C. App. 517) is amended--
       (1) In subsection (a), by inserting after the first 
     sentence the following new sentence: ``Any such waiver that 
     applies to an action listed in subsection (b) of this section 
     is effective only if it is in writing and is executed as an 
     instrument separate from the obligation or liability to which 
     it applies.'';
       (2) by redesignating subsection (c) as subsection (d); and
       (3) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Prominent Display of Certain Contract Rights 
     Waivers.--Any waiver in writing of a right or protection 
     provided by this Act that applies to a contract, lease, or 
     similar legal instrument must be in at least 12 point 
     type.''.

     SEC. 103. RIGHT OF SERVICEMEMBER PLAINTIFFS TO REQUEST STAY 
                   OF CIVIL PROCEEDINGS.

       Section 202(a) of the Servicemembers Civil Relief Act (50 
     U.S.C. App. 522(a)) is amended by inserting ``plaintiff or'' 
     before ``defendant''.

     SEC. 104. TERMINATION OF LEASES.

       (a) Joint Leases.--Subsection (a) of section 305 of the 
     Servicemembers Civil Relief Act (50 U.S.C. App. 535) is 
     amended to read as follows:
       ``(a) Termination by Lessee.--
       ``(1) In general.--The lessee on a lease described in 
     subsection (b) may, at the lessee's option, terminate the 
     lease at any time after--
       ``(A) the lessee's entry into military service; or
       ``(B) the date of the lessee's military orders described in 
     paragraph (1)(B) or (2)(B) of subsection (b), as the case may 
     be.
       ``(2) Joint leases.--A lessee's termination of a lease 
     pursuant to this subsection shall terminate any obligation a 
     dependent of the lessee may have under the lease.''.
       (b) Motor Vehicles Leases.--
       (1) Applicability to pcs orders from states outside 
     conus.--Subparagraph (B) of subsection (b)(2) of such section 
     is amended by striking ``military orders for'' and all that 
     follows through ``or to deploy'' and inserting ``military 
     orders--
       ``(i) for a change of permanent station--

       ``(I) from a location in the continental United States to a 
     location outside the continental United States; or
       ``(II) from a location in a State outside the continental 
     United States to any location outside that State; or

       ``(ii) to deploy''.
       (2) Definitions.--Such section is further amended by adding 
     at the end the following new subsection:
       ``(i) Definitions.--
       ``(1) Military orders.--The term `military orders', with 
     respect to a servicemember, means official military orders, 
     or any notification, certification, or verification from the 
     servicemember's commanding officer, with respect to the 
     servicemember's current or future military duty status.
       ``(2) Conus.--The term `continental United States' means 
     the 48 contiguous States and the District of Columbia.''.
       (c) Coverage of Individual Deployments.--Subsection (b) of 
     such section is further amended in paragraph (1)(B) and 
     paragraph (2)(B)(ii) (as designated by subsection (b) of this 
     section) by inserting ``, or as an individual in support of a 
     military operation,'' after ``deploy with a military unit''.

[[Page 21269]]



     SEC. 105. PREVENTION OF DOUBLE TAXATION OF CERTAIN 
                   SERVICEMEMBERS.

       Section 511(c) of the Servicemembers Civil Relief Act (50 
     U.S.C. App. 571(c)) is amended by adding at the end the 
     following new paragraph:
       ``(5) Use, excise, or similar taxes.--A tax jurisdiction 
     may not impose a use, excise, or similar tax on the personal 
     property of a nonresident servicemember when the laws of the 
     tax jurisdiction fail to provide a credit against such taxes 
     for sales, use, excise, or similar taxes previously paid on 
     the same property to another tax jurisdiction.''.

              TITLE II--EMPLOYMENT AND REEMPLOYMENT RIGHTS

             Subtitle A--Extension of Health Care Coverage

     SEC. 201. TWO-YEAR PERIOD OF CONTINUATION OF EMPLOYER-
                   SPONSORED HEALTH CARE COVERAGE.

       (a) Improvement in Period of Coverage.--Subsection 
     (a)(1)(A) of section 4317 of title 38, United States Code, is 
     amended by striking ``18-month period'' and inserting ``24-
     month period''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to elections made under such section 4317 on or 
     after the date of the enactment of this Act.

     SEC. 202. REINSTATEMENT OF REPORTING REQUIREMENTS.

       Section 4332 of title 38, United States Code, is amended in 
     the matter preceding paragraph (1) by striking ``no later 
     than February 1, 1996, and annually thereafter through 2000'' 
     and inserting ``no later than February 1, 2005, and annually 
     thereafter''.

                       Subtitle B--Other Matters

     SEC. 211. REQUIREMENT FOR EMPLOYERS TO PROVIDE NOTICE OF 
                   RIGHTS AND DUTIES UNDER USERRA.

       (a) Notice.--Chapter 43 of title 38, United States Code, is 
     amended by adding at the end the following new section:

     ``Sec. 4334. Notice of rights and duties

       ``(a) Requirement to Provide Notice.--Each employer shall 
     provide to persons entitled to rights and benefits under this 
     chapter a notice of the rights, benefits, and obligations of 
     such persons and such employers under this chapter. The 
     requirement for the provision of notice under this section 
     may be met by the posting of the notice where employers 
     customarily place notices for employees.
       ``(b) Content of Notice.--The Secretary shall provide to 
     employers the text of the notice to be provided under this 
     section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``4334. Notice of rights and duties.''.

       (c) Implementation.--(1) Not later than the date that is 90 
     days after the date of the enactment of this Act, the 
     Secretary of Labor shall make available to employers the 
     notice required under section 4334 of title 38, United States 
     Code, as added by subsection (a).
       (2) The amendments made by this section shall apply to 
     employers under chapter 43 of such title on and after the 
     first date referred to in paragraph (1).

     SEC. 212. DEMONSTRATION PROJECT FOR REFERRAL OF USERRA CLAIMS 
                   AGAINST FEDERAL AGENCIES TO THE OFFICE OF 
                   SPECIAL COUNSEL.

       (a) Establishment of Project.--The Secretary of Labor and 
     the Office of Special Counsel shall carry out a demonstration 
     project under which certain claims against Federal executive 
     agencies under the Uniformed Services Employment and 
     Reemployment Rights Act under chapter 43 of title 38, United 
     States Code, are referred to, or otherwise received by, the 
     Office of Special Counsel for assistance, including 
     investigation and resolution of the claim as well as 
     enforcement of rights with respect to the claim.
       (b) Referral of All Prohibited Personnel Action Claims to 
     the Office of Special Counsel.--(1) Under the demonstration 
     project, the Office of Special Counsel shall receive and 
     investigate all claims under the Uniformed Services 
     Employment and Reemployment Rights Act with respect to 
     Federal executive agencies in cases where the Office of 
     Special Counsel has jurisdiction over related claims pursuant 
     to section 1212 of title 5, United States Code.
       (2) For purposes of paragraph (1), a related claim is a 
     claim involving the same Federal executive agency and the 
     same or similar factual allegations or legal issues as those 
     being pursued under a claim under the Uniformed Services 
     Employment and Reemployment Rights Act.
       (c) Referral of Other Claims Against Federal Executive 
     Agencies.--(1) Under the demonstration project, the 
     Secretary--
       (A) shall refer to the Office of Special Counsel all claims 
     described in paragraph (2) made during the period of the 
     demonstration project; and
       (B) may refer any claim described in paragraph (2) filed 
     before the demonstration project that is pending before the 
     Secretary at the beginning of the demonstration project.
       (2) A claim referred to in paragraph (1) is a claim under 
     chapter 43 of title 38, United States Code, against a Federal 
     executive agency by a claimant with a social security account 
     number with an odd number as its terminal digit, or, in the 
     case of a claim that does not contain a social security 
     account number, a case number assigned to the claim with an 
     odd number as its terminal digit.
       (d) Administration of Demonstration Project.--(1) The 
     Office of Special Counsel shall administer the demonstration 
     project. The Secretary shall cooperate with the Office of 
     Special Counsel in carrying out the demonstration project.
       (2) In the case of any claim referred, or otherwise 
     received by, to the Office of Special Counsel under the 
     demonstration project, any reference to the ``Secretary'' in 
     sections 4321, 4322, and 4326 of title 38, United States 
     Code, is deemed a reference to the ``Office of Special 
     Counsel''.
       (3) In the case of any claim referred to, or otherwise 
     received by, the Office of Special Counsel under the 
     demonstration project, the Office of Special Counsel shall 
     retain administrative jurisdiction over the claim.
       (e) Period of Project.--The demonstration project shall be 
     carried out during the period beginning on the date that is 
     60 days after the date of the enactment of this Act, and 
     ending on September 30, 2007.
       (f) Evaluations and Report.--(1) The Comptroller General of 
     the United States shall conduct periodic evaluations of the 
     demonstration project under this section.
       (2) Not later than April 1, 2007, the Comptroller General 
     shall submit to Congress a report on the evaluations 
     conducted under paragraph (1). The report shall include the 
     following information and recommendations:
       (A) A description of the operation and results of the 
     demonstration program, including--
       (i) the number of claims described in subsection (c) 
     referred to, or otherwise received by, the Office of Special 
     Counsel and the number of such claims referred to the 
     Secretary of Labor, and
       (ii) for each Federal executive agency, the number of 
     claims resolved, the type of corrective action obtained, the 
     period of time for final resolution of the claim, and the 
     results obtained.
       (B) An assessment of whether referral to the Office of 
     Special Counsel of claims under the demonstration project--
       (i) improved services to servicemembers and veterans; or
       (ii) significantly reduced or eliminated duplication of 
     effort and unintended delays in resolving meritorious claims 
     of those servicemembers and veterans.
       (C) An assessment of the feasibility and advisability of 
     referring all claims under chapter 43 of title 38, United 
     States Code, against Federal executive agencies to the Office 
     of Special Counsel for investigation and resolution.
       (D) Such other recommendations for administrative action or 
     legislation as the Comptroller General determines 
     appropriate.
       (g) Definitions.--In this section:
       (1) The term ``Office of Special Counsel'' means the Office 
     of Special Counsel established by section 1211 of title 5, 
     United States Code.
       (2) The term ``Secretary'' means the Secretary of Labor.
       (3) The term ``Federal executive agency'' has the meaning 
     given that term in section 4303(5) of title 38, United States 
     Code.

               TITLE III--MATTERS RELATING TO FIDUCIARIES

     SEC. 301. DEFINITION OF FIDUCIARY.

       (a) In General.--(1) Chapter 55 of title 38, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 5506. Definition of `fiduciary'

       ``For purposes of this chapter and chapter 61 of this 
     title, the term `fiduciary' means--
       ``(1) a person who is a guardian, curator, conservator, 
     committee, or person legally vested with the responsibility 
     or care of a claimant (or a claimant's estate) or of a 
     beneficiary (or a beneficiary's estate); or
       ``(2) any other person having been appointed in a 
     representative capacity to receive money paid under any of 
     the laws administered by the Secretary for the use and 
     benefit of a minor, incompetent, or other beneficiary.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``5506. Definition of `fiduciary'.''.

       (b) Conforming Amendments to Section 5502.--Section 5502 of 
     such title is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``other person'' and 
     inserting ``other fiduciary''; and
       (B) in the second sentence of paragraph (2), by inserting 
     ``for benefits under this title'' after ``in connection with 
     rendering fiduciary services'';
       (2) in subsection (b), by striking ``guardian, curator, 
     conservator, or other person'' each place it appears and 
     inserting ``fiduciary''; and
       (3) in subsection (d), by striking ``guardian, curator, or 
     conservator'' and inserting ``fiduciary''.
       (c) Conforming Amendment to Section 6101.--Section 6101(a) 
     of such title is amended by striking ``guardian, curator,'' 
     and all that follows through ``beneficiary,'' and inserting 
     ``fiduciary (as defined in section 5506 of this title) for 
     the benefit of a minor, incompetent, or other beneficiary 
     under laws administered by the Secretary,''.

[[Page 21270]]



     SEC. 302. INQUIRY, INVESTIGATIONS, AND QUALIFICATION OF 
                   FIDUCIARIES.

       (a) In General.--Chapter 55 of title 38, United States 
     Code, as amended by section 301(a)(1), is further amended by 
     adding at the end the following new section:

     ``Sec. 5507. Inquiry, investigations, and qualification of 
       fiduciaries

       ``(a) Any certification of a person for payment of benefits 
     of a beneficiary to that person as such beneficiary's 
     fiduciary under section 5502 of this title shall be made on 
     the basis of--
       ``(1) an inquiry or investigation by the Secretary of the 
     fitness of that person to serve as fiduciary for that 
     beneficiary, such inquiry or investigation--
       ``(A) to be conducted in advance of such certification;
       ``(B) to the extent practicable, to include a face-to-face 
     interview with such person; and
       ``(C) to the extent practicable, to include a copy of a 
     credit report for such person issued within one year of the 
     date of the proposed appointment;
       ``(2) adequate evidence that certification of that person 
     as fiduciary for that beneficiary is in the interest of such 
     beneficiary (as determined by the Secretary under 
     regulations); and
       ``(3) the furnishing of any bond that may be required by 
     the Secretary.
       ``(b) As part of any inquiry or investigation of any person 
     under subsection (a), the Secretary shall request information 
     concerning whether that person has been convicted of any 
     offense under Federal or State law which resulted in 
     imprisonment for more than one year. If that person has been 
     convicted of such an offense, the Secretary may certify the 
     person as a fiduciary only if the Secretary makes a specific 
     finding that the person has been rehabilitated and is an 
     appropriate person to act as fiduciary for the beneficiary 
     concerned under the circumstances.
       ``(c)(1) In the case of a proposed fiduciary described in 
     paragraph (2), the Secretary, in conducting an inquiry or 
     investigation under subsection (a)(1), may carry out such 
     inquiry or investigation on an expedited basis that may 
     include waiver of any specific requirement relating to such 
     inquiry or investigation, including the otherwise applicable 
     provisions of subparagraphs (A), (B), and (C) of such 
     subsection. Any such inquiry or investigation carried out on 
     such an expedited basis shall be carried out under 
     regulations prescribed for purposes of this section.
       ``(2) Paragraph (1) applies with respect to a proposed 
     fiduciary who is--
       ``(A) the parent (natural, adopted, or stepparent) of a 
     beneficiary who is a minor;
       ``(B) the spouse or parent of an incompetent beneficiary;
       ``(C) a person who has been appointed a fiduciary of the 
     beneficiary by a court of competent jurisdiction; or
       ``(D) being appointed to manage an estate where the annual 
     amount of veterans benefits to be managed by the proposed 
     fiduciary does not exceed $3600, as adjusted pursuant to 
     section 5312 of this title.
       ``(d) Temporary Fiduciaries.--When in the opinion of the 
     Secretary, a temporary fiduciary is needed in order to 
     protect the assets of the beneficiary while a determination 
     of incompetency is being made or appealed or a fiduciary is 
     appealing a determination of misuse, the Secretary may 
     appoint one or more temporary fiduciaries for a period not to 
     exceed 120 days. If a final decision has not been made within 
     120 days, the Secretary may not continue the appointment of 
     the fiduciary without obtaining a court order for appointment 
     of a guardian, conservator, or other fiduciary under the 
     authority provided in section 5502(b) of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the item 
     added by section 301(a)(2) the following new item:

``5507. Inquiry, investigations, and qualification of fiduciaries.''.

     SEC. 303. MISUSE OF BENEFITS BY FIDUCIARIES.

       (a) Protection of Veterans Benefits When Administered by 
     Fiduciaries.--(1) Chapter 61 of title 38, United States Code, 
     is amended by adding at the end the following new sections:

     ``Sec. 6106. Misuse of benefits by fiduciaries

       ``(a) Fee Forfeiture in Case of Benefit Misuse by 
     Fiduciaries.--A fiduciary may not collect a fee from a 
     beneficiary for any month with respect to which the Secretary 
     or a court of competent jurisdiction has determined that the 
     fiduciary misused all or part of the individual's benefit, 
     and any amount so collected by the fiduciary as a fee for 
     such month shall be treated as a misused part of the 
     individual's benefit.
       ``(b) Liability of Fiduciaries for Misused Benefits.--(1) 
     If the Secretary or a court of competent jurisdiction 
     determines that a fiduciary that is not a Federal, State, or 
     local government agency has misused all or part of a 
     beneficiary's benefit that was paid to such fiduciary, the 
     fiduciary shall be liable for the amount misused, and such 
     amount (to the extent not repaid by the fiduciary) shall be 
     treated as an erroneous payment of benefits under this title 
     to the fiduciary for purposes of laws pertaining to the 
     recovery of overpayments. The amount of such overpayment 
     shall constitute a liability of such fiduciary to the United 
     States and may be recovered in the same manner as any other 
     debt due the United States. Subject to paragraph (2), upon 
     recovering all or any part of such amount, the Secretary 
     shall pay an amount equal to the recovered amount to such 
     beneficiary or such beneficiary's successor fiduciary.
       ``(2) The total of the amounts paid to a beneficiary (or a 
     beneficiary's successor fiduciary) under paragraph (1) and 
     under section 6107 of this title may not exceed the total 
     benefit amount misused by the fiduciary with respect to that 
     beneficiary.
       ``(c) Misuse of Benefits Defined.--For purposes of this 
     chapter, misuse of benefits by a fiduciary occurs in any case 
     in which the fiduciary receives payment, under any of laws 
     administered by the Secretary, for the use and benefit of a 
     beneficiary and uses such payment, or any part thereof, for a 
     use other than for the use and benefit of such beneficiary or 
     that beneficiary's dependents. Retention by a fiduciary of an 
     amount of a benefit payment as a fiduciary fee or commission, 
     or as attorney's fees (including expenses) and court costs, 
     if authorized by the Secretary or a court of competent 
     jurisdiction, shall be considered to be for the use or 
     benefit of such beneficiary.
       ``(d) Regulations.--The Secretary may prescribe by 
     regulation the meaning of the term `use and benefit' for 
     purposes of this section.
       ``(e) Finality of Determinations.--A determination by the 
     Secretary that a fiduciary has misused benefits is a decision 
     of the Secretary for purposes of section 511(a) of this 
     title.

     ``Sec. 6107. Reissuance of benefits

       ``(a) Negligent Failure by Secretary.--(1) In any case in 
     which the negligent failure of the Secretary to investigate 
     or monitor a fiduciary results in misuse of benefits by the 
     fiduciary, the Secretary shall pay to the beneficiary or the 
     beneficiary's successor fiduciary an amount equal to the 
     amount of benefits that were so misused.
       ``(2) There shall be considered to have been a negligent 
     failure by the Secretary to investigate and monitor a 
     fiduciary in the following cases:
       ``(A) A case in which the Secretary failed to timely review 
     a fiduciary's accounting.
       ``(B) A case in which the Secretary was notified of 
     allegations of misuse, but failed to act in a timely manner 
     to terminate the fiduciary.
       ``(C) In any other case in which actual negligence is 
     shown.
       ``(b) Reissuance of Misused Benefits in Other Cases.--(1) 
     In any case in which a fiduciary described in paragraph (2) 
     misuses all or part of an individual's benefit paid to such 
     fiduciary, the Secretary shall pay to the beneficiary or the 
     beneficiary's successor fiduciary an amount equal to the 
     amount of such benefit so misused.
       ``(2) Paragraph (1) applies to a fiduciary that--
       ``(A) is not an individual; or
       ``(B) is an individual who, for any month during a period 
     when misuse occurs, serves 10 or more individuals who are 
     beneficiaries under this title.
       ``(c) Recoupment of Amounts Reissued.--In any case in which 
     the Secretary reissues a benefit payment (in whole or in 
     part) under subsection (a) or (b), the Secretary shall make a 
     good faith effort to obtain recoupment from the fiduciary to 
     whom the payment was originally made.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new items:

``6106. Misuse of benefits by fiduciaries.
``6107. Reissuance of benefits.''.

     SEC. 304. ADDITIONAL PROTECTIONS FOR BENEFICIARIES WITH 
                   FIDUCIARIES.

       (a) Onsite Reviews and Required Accountings.--(1) Chapter 
     55 of title 38, United States Code, as amended by section 
     302(a), is further amended by adding at the end the following 
     new sections:

     ``Sec. 5508. Periodic onsite reviews of institutional 
       fiduciaries

       ``In addition to such other reviews of fiduciaries as the 
     Secretary may otherwise conduct, the Secretary shall provide 
     for the periodic onsite review of any person or agency 
     located in the United States that receives the benefits 
     payable under laws administered by the Secretary to another 
     individual pursuant to the appointment of such person or 
     agency as a fiduciary under section 5502(a)(1) of this title 
     in any case in which the fiduciary is serving in that 
     capacity with respect to more than 20 beneficiaries and the 
     total annual amount of such benefits exceeds $50,000, as 
     adjusted pursuant to section 5312 of this title.

     ``Sec. 5509. Authority to redirect delivery of benefit 
       payments when a fiduciary fails to provide required 
       accounting

       ``(a) Required Reports and Accountings.--The Secretary may 
     require a fiduciary to file a report or accounting pursuant 
     to regulations prescribed by the Secretary.
       ``(b) Actions Upon Failure to File.--In any case in which a 
     fiduciary fails to submit a report or accounting required by 
     the Secretary under subsection (a), the Secretary may, after 
     furnishing notice to such fiduciary and the beneficiary 
     entitled to such payment of benefits, require that such 
     fiduciary appear in person at a regional office of

[[Page 21271]]

     the Department serving the area in which the beneficiary 
     resides in order to receive such payments.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item added by section 302(b) 
     the following new items:

``5508. Periodic onsite reviews of institutional fiduciaries.
``5509. Authority to redirect delivery of benefit payments when a 
              fiduciary fails to provide required accounting.''.

       (b) Civil Monetary Penalties; Judicial Orders of 
     Restitution.--(1) Chapter 61 of title 38, United States Code, 
     as amended by section 303(a), is further amended by adding at 
     the end the following new sections:

     ``Sec. 6108. Civil monetary penalties

       ``(a) Penalty for Conversion.--Any person (including an 
     organization, agency, or other entity) who, having received, 
     while acting in the capacity of a fiduciary pursuant to 
     section 5502 of this title, a payment under a law 
     administered by the Secretary for the use and benefit of 
     another individual, converts such payment, or any part 
     thereof, to a use that such person knows or should know is 
     other than for the use and benefit of such other individual 
     shall be subject to, in addition to any other penalty that 
     may be prescribed by law, a civil monetary penalty assessed 
     by the Secretary of not more than $5,000 for each such 
     conversion.
       ``(b) Penalty in Lieu of Damages.--Any person who makes a 
     conversion of a payment described in subsection (a) and is 
     subject to a civil monetary penalty under that subsection by 
     reason of such conversion shall also be subject to an 
     assessment by the Secretary, in lieu of damages sustained by 
     the United States resulting from the conversion, of not more 
     than twice the amount of any payments so converted.
       ``(c) Costs of Recovery.--From amounts collected under this 
     section, the amount necessary to recoup the Department's 
     costs of such collection shall be credited to appropriations 
     currently available for the same purpose as the appropriation 
     that incurred those costs, to remain available until 
     expended.

     ``Sec. 6109. Authority for judicial orders of restitution

       ``(a) Any Federal court, when sentencing a defendant 
     convicted of an offense arising from the misuse of benefits 
     under this title, may order, in addition to or in lieu of any 
     other penalty authorized by law, that the defendant make 
     restitution to the Department.
       ``(b) Sections 3612, 3663, and 3664 of title 18 shall apply 
     with respect to the issuance and enforcement of orders of 
     restitution under subsection (a). In so applying those 
     sections, the Department shall be considered the victim.
       ``(c) If the court does not order restitution, or orders 
     only partial restitution, under subsection (a), the court 
     shall state on the record the reasons therefor.
       ``(d)(1) Except as provided in paragraph (2), amounts 
     received or recovered by the Secretary pursuant to an order 
     of restitution under subsection (a), to the extent and in the 
     amounts provided in advance in appropriations Acts, shall be 
     available to defray expenses incurred by the Office of the 
     Inspector General for the investigation of fiduciaries under 
     this title.
       ``(2) Paragraph (1) shall not apply with respect to amounts 
     received in connection with misuse by a fiduciary of funds 
     paid as benefits under laws administered by the Secretary. 
     Such amounts shall be paid to the individual whose benefits 
     were misused unless the Secretary has previously reissued the 
     misused benefits, in which case the amounts shall be treated 
     in the same manner as overpayments recouped by the Secretary 
     and shall be deposited to the credit of the applicable 
     revolving fund, trust fund, or appropriation.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item added by section 303(b) 
     the following new items:

``6108. Civil monetary penalties.
``6109. Authority for judicial orders of restitution.''.

     SEC. 305. ANNUAL REPORT.

       (a) In General.--Chapter 55 of title 38, United States 
     Code, as amended by section 304(a)(1), is further amended by 
     adding at the end the following new section:

     ``Sec. 5510. Annual report

       ``The Secretary shall include in the Annual Benefits Report 
     of the Veterans Benefits Administration or the Secretary's 
     Annual Performance and Accountability Report information 
     concerning fiduciaries who have been appointed to receive 
     payments for beneficiaries of the Department. As part of such 
     information, the Secretary shall separately set forth the 
     following:
       ``(1) The number of beneficiaries in each category 
     (veteran, surviving spouse, child, adult disabled child, or 
     parent).
       ``(2) The types of benefit being paid (compensation, 
     pension, dependency and indemnity compensation, death pension 
     or benefits payable to a disabled child under chapter 18 of 
     this title).
       ``(3) The total annual amounts and average annual amounts 
     of benefits paid to fiduciaries for each category and type of 
     benefit.
       ``(4) The number of fiduciaries who are the (spouse, 
     parent, legal custodian, court-appointed fiduciary, 
     institutional fiduciary, custodian in fact, and supervised 
     direct payment).
       ``(5) The number of cases in which the fiduciary was 
     changed by the Secretary because of a finding that benefits 
     had been misused.
       ``(6) How such cases of misuse of benefits were addressed 
     by the Secretary.
       ``(7) The final disposition of such cases of misuse of 
     benefits, including the number and dollar amount of any civil 
     or criminal penalties imposed.
       ``(8) Such other information as the Secretary considers 
     appropriate.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the 
     items added by the amendment made by section 304(a)(2) the 
     following new item:

``5510. Annual report.''.

     SEC. 306. ANNUAL ADJUSTMENT IN BENEFITS THRESHOLDS.

       Section 5312(b)(1) of title 38, United States Code, is 
     amended by inserting ``and the annual benefit amount 
     limitations under sections 5507(c)(2)(D) and 5508 of this 
     title,'' after ``(d)(3) of such section,''.

     SEC. 307. EFFECTIVE DATES.

       (a) In General.--Except as otherwise provided, this title 
     and the amendments made by this title shall take effect on 
     the first day of the seventh month beginning after the date 
     of the enactment of this Act.
       (b) Special Rules.--(1) Section 5510 of title 38, United 
     States Code, as added by section 305(a), shall take effect on 
     the date of the enactment of this Act.
       (2) Sections 6106 and 6107 of title 38, United States Code, 
     as added by section 303(a), shall apply with respect to any 
     determinations by the Secretary of Veterans Affairs made 
     after the date of the enactment of this Act of misuse of 
     funds by a fiduciary.

                        TITLE IV--OTHER MATTERS

     SEC. 401. INVENTORY OF MEDICAL WASTE MANAGEMENT ACTIVITIES AT 
                   DEPARTMENT HEALTH-CARE FACILITIES.

       (a) Inventory.--The Secretary of Veterans Affairs shall 
     establish and maintain a national inventory of medical waste 
     management activities in the health-care facilities of the 
     Department of Veterans Affairs. The inventory shall include 
     the following:
       (1) A statement of the current national policy of the 
     Department on managing and disposing of medical waste, 
     including regulated medical waste in all its forms.
       (2) A description of the program of each geographic service 
     area of the Department to manage and dispose of medical 
     waste, including general medical waste and regulated medical 
     waste, with a description of the primary methods used in 
     those programs and the associated costs of those programs, 
     with cost information shown separately for in-house costs 
     (including full-time equivalent employees) and contract 
     costs.
       (b) Report.--Not later than April 15, 2005, the Secretary 
     of Veterans Affairs shall submit to the Committees on 
     Veterans' Affairs of the Senate and House of Representatives 
     a report on medical waste management activities in the 
     facilities of the Department of Veterans Affairs. The report 
     shall include the following:
       (1) The inventory established under subsection (a), 
     including all the matters specified in that subsection.
       (2) A listing of each violation of medical waste management 
     and disposal regulations reported at any health-care facility 
     of the Department over the preceding five years by any State 
     or Federal agency, along with an explanation of any remedial 
     or other action taken by the Secretary in response to each 
     such reported violation.
       (3) A description of any plans to modernize, consolidate, 
     or otherwise improve the management of medical waste and 
     disposal programs at health-care facilities of the 
     Department, including the projected costs associated with 
     such plans and any barriers to achieving goals associated 
     with such plans.
       (4) An assessment or evaluation of the available methods of 
     disposing of medical waste and identification of which of 
     those methods are more desirable from an environmental 
     perspective in that they would be least likely to result in 
     contamination of air or water or otherwise cause future 
     cleanup problems.

     SEC. 402. TECHNICAL AMENDMENTS TO EDUCATION PROGRAM 
                   PROVISIONS.

       (a) Inapplicability of Wage Requirements for On-Job 
     Training Programs Leading to Self-Employment.--(1) Section 
     3677(b) is amended by adding at the end the following new 
     paragraph:
       ``(3) Notwithstanding paragraph (1)(A) and subsection 
     (c)(8), no wages shall be required to be paid an eligible 
     person or veteran by a training establishment described in 
     section 3452(e)(2) of this title.''.
       (2) Section 3452(e), as amended by section 301 of the 
     Veterans Benefits Act of 2003 (Public Law 108-183; 117 Stat. 
     2658), is amended by striking ``An'' in paragraph (2) and 
     inserting ``For the period beginning on October 1, 2005, and 
     ending on September 30, 2010, an''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if included in the enactment of section 
     301 of the Veterans Benefits Act of 2003 (Public Law 108-183; 
     117 Stat. 2658).


[[Page 21272]]


  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey (Mr. Smith) and the gentleman from Maine (Mr. Michaud) each will 
control 20 minutes.
  The Chair recognizes the gentleman from New Jersey (Mr. Smith).
  Mr. SMITH of New Jersey. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I rise again in strong support of H.R. 4658, as amended, 
the Servicemembers and Veterans Legal Protections Act of 2004. This 
measure has a number of important provisions for servicemembers, 
veterans and their dependents.
  H.R. 4658, as amended, would further strengthen the Servicemembers 
Civil Relief Act that was enacted just last year and signed by 
President Bush. There were several new issues that arose while we were 
considering that legislation, but their solution required further 
research and discussion. That discussion led to this legislation.
  Most significantly, the bill would clarify that the Servicemembers 
Relief Act's lease termination protection under section 305 applies to 
military dependents who are on joint leases with servicemembers. This 
has always been the intent of Congress, but some landlords have 
recently tried to argue there is a loophole, leaving the 
servicemember's spouse liable if the servicemember is relieved from 
liability under the lease. That was pointed out most definitively in an 
oversight hearing we held very recently.
  H.R. 4658 would make several other improvements to the SCRA, 
including strengthening protections relating to waivers of 
servicemembers rights. Additionally, it would provide motor vehicle 
lease termination protections for servicemembers stationed in Alaska 
and Hawaii.
  Mr. Speaker, under title II of 4658, this title would strengthen the 
Uniformed Services Employment and Reemployment Rights Act, or USERRA, 
the law which protects the jobs and employment benefits of Guard and 
Reserve members who are called to active duty. I want to highlight the 
major provisions for my colleagues.
  The bill would increase from 18 to 24 months the maximum period of 
employer-sponsored health coverage during active military service to 
reflect the longer deployments of Guard and Reserve members. It would 
also establish a 3-year demonstration project at the U.S. Office of the 
Special Counsel to improve enforcement of the act in cases involving 
Federal executive branch employees.
  Additionally, the bill contains a requirement for employers to 
provide notice to employees of their rights. Title III of the bill 
would make a number of changes to strengthen the program which 
authorizes benefit payments to fiduciaries of veterans unable to manage 
their financial affairs. It would require greater scrutiny by VA 
fiduciaries to make fiduciaries subject to civil penalties for misuse 
of a veteran's assets.
  Mr. Speaker, this measure would also require the Secretary of 
Veterans Affairs to establish an inventory of medical waste management 
activities in the VA, and to assess what methods of medical waste 
disposal are desirable from an environmental perspective. He would then 
report to Congress on plans to modernize or improve the management of 
medical waste and disposal programs.
  Mr. Speaker, I urge support of the bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MICHAUD. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 4658, the 
Servicemembers and Veterans Legal Protections Act of 2004. I want to 
thank our ranking member, the gentleman from Illinois (Mr. Evans), and 
our chairman, the gentleman from New Jersey (Mr. Smith) for their 
leadership on this legislation, as well as my good friend and colleague 
on the Subcommittee on Benefits, the gentleman from South Carolina (Mr. 
Brown).

                              {time}  0200

  I have enjoyed working with them during this Congress. Additionally, 
I would like to thank Members and staffs on both sides of the aisle who 
have contributed to this bill.
  H.R. 4658 contains a number of provisions aimed at enhancing and 
improving the Servicemembers Civil Relief Act, the Uniformed Services 
Employment and Reemployment Rights Act and other matters which will 
improve the quality of life of our troops, veterans and military 
families. Today, men and women who make up the Armed Forces and their 
families are under tremendous strain. Laws concerning reemployment 
rights and legal and financial protections for our service members help 
them to focus on serving the country. When these laws are effectively 
administered and vigorously enforced, they help our service members and 
their families and assist in recruitment and retention efforts.
  Mr. Speaker, I am particularly pleased that we have included measures 
to improve certain sections of the Servicemembers Civil Relief Act. 
These measures were brought to our attention by service members and 
military lawyers who experienced problems we had not anticipated when 
the Servicemembers Civil Relief Act was passed last year. H.R. 4658 
solved these identified problems.
  H.R. 4658 also makes improvements to the Uniformed Services 
Employment and Reemployment Rights Act. I am particularly pleased that 
this bill includes measures to protect our most vulnerable veterans 
from financial abuse by those VA has authorized to handle their cash 
benefits. These provisions are drawn from H.R. 4032 which I joined the 
gentlewoman from California (Mrs. Davis) in introducing. Veterans and 
other VA beneficiaries who have their benefits paid to fiduciaries will 
have protections similar to those Congress recently afforded to Social 
Security beneficiaries.
  Finally, I must express my deep regret that the majority leadership 
has rejected a provision in this bill supported by our committee. In 
response to a problem identified by the Secretary of Veterans Affairs, 
the administration proposed to permit VA to provide limited 
transitional care for newborns of veterans receiving maternity care 
from VA. Currently, VA is being charged high rates by hospitals who 
agree to provide contract maternity care to eligible veterans. Rates 
are excessive because under current law VA has no authority to pay for 
care of the newborn child after delivery. VA requested the authority to 
pay for newborn care for a maximum of 14 days in order to allow time to 
make other arrangements for newborns who would need ongoing care. The 
committee recognized that alternate payment sources such as private 
medical insurance may be available to pay for newborn care and 
therefore would have limited VA's liability to those situations where 
no other payment source was available. These provisions were rejected 
by the Republican leadership. VA will continue to have difficulty 
arranging for contract maternity care and will continue to be charged 
higher amounts. As a Blue Dog, I find this fiscally irresponsible.
  I also believe we are sending the wrong message to servicewomen 
injured in Iraq or Afghanistan or otherwise disabled by military 
service. VA's failure to provide newborn care associated with maternity 
care is likely to alienate the increasing number of young women in our 
military. I will continue to push for reconsideration of this provision 
in the 109th Congress.
  Mr. Speaker, the provisions in H.R. 4658 are of the utmost 
importance. We have an obligation to do all we can to ensure that 
service members and their families have peace of mind. Passing this 
legislation would be a strong step in the right direction. I urge all 
Members to support this bill.
  Mr. Speaker, I yield 3 minutes to the gentleman from Texas (Mr. 
Rodriguez).
  Mr. RODRIGUEZ. Mr. Speaker, I want to take this time to thank my 
colleague here for his leadership on this particular piece of 
legislation. I also thank the gentleman from New Jersey (Mr. Smith) on 
his efforts as well as the gentleman from Illinois (Mr. Evans).

[[Page 21273]]

  Mr. Speaker, I rise today in support of H.R. 4658, the Servicemembers 
Legal Protection Act. Although this legislation is a great measure and 
I urge its passage, I regret that it no longer has a provision 
introduced by the gentleman from Illinois (Mr. Evans) and myself to 
assist the Department of Veterans Affairs in delivering a comprehensive 
maternity care benefit to women veterans. Women comprise an increasing 
portion of our armed services and will soon make up 20 percent of our 
active duty forces.
  With that being said, we must continue to bring women veterans into 
the veterans health care system. VA medical centers do not deliver 
maternity care except in cases of emergency. Yet VA's contractors are 
reluctant to accept contracts if payment for infants' care is 
uncompensated, particularly if there is a risk for an adverse birth 
outcome. Ensuring at least partial payment for the infant's care would 
have allowed the VA to contract more easily for this routine care 
provided to women veterans and allow them to receive the care they 
deserve.
  As I mentioned earlier, I am disappointed that the provision on 
women's comprehensive care is not in the final bill. However, I trust 
that the gentleman from New Jersey (Mr. Smith) and the gentleman from 
Connecticut (Mr. Simmons) will continue to work with us in a bipartisan 
manner in order to ensure that we eventually bring passage. I urge my 
colleagues to vote in favor of this bill as it contains many important 
legal and financial protections for our military men and women and 
their families.
  Mr. Speaker, in closing let me just say that we do have and we are 
expecting to have a larger number of women participating. If those 
veteran women are expecting, we are going to have difficulties unless 
we also take care of not only the veteran herself but also the child 
that she might be bearing.
  Mr. MICHAUD. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield myself 1 minute.
  I want to thank the gentleman from Maine (Mr. Michaud) for his 
leadership on this legislation as part of the Benefits committee and 
the gentleman from Illinois (Mr. Evans) as well. Again, this and the 
bill that was passed and signed by the President last year was a 
historic rewrite and expansion of the Servicemembers Relief Act, as we 
called it. It is a rewrite of the old Soldiers and Sailors Relief Act 
first enacted back in 1940. It provided significant upgrades and made 
for consistency and uniformity across the country when it came to 
adjudicating the protections for our servicemen who are deployed 
overseas. This is especially important to so many Guard and Reserve now 
serving so ably and so honorably in Iraq as well as in Afghanistan.
  I also want to say that I deeply regret the loss of the newborn 
provision. As my colleagues might recall, I worked with my good friends 
on the other side of the aisle and on our side to put that in. We will 
be back hopefully and we can regain that sometime in the future. But I 
do thank him for bringing that up.
  Mr. EVANS. Mr. Speaker, I rise in strong support of H.R. 4658, the 
Servicemembers and Veterans Legal Protection Act of 2004. I want to 
thank Chairman Smith, as well as Henry Brown and Michael Michaud, 
Chairman and Ranking Member of the Benefits Subcommittee, respectively, 
for their good work on this legislation. Additionally, I commend the 
Members and staffs on both sides of the aisle who have worked 
diligently to bring this bill forward. It has truly been a bipartisan 
effort.
  H.R. 4658 is important legislation that contains a number of 
provisions aimed at enhancing and improving the Servicemembers civil 
Relief Act (SCRA), the Uniformed Services Employment and Reemployment 
Rights Act (USERRA) and other matters pertaining to the quality of life 
of our troops, veterans, and military families.
  Mr. Speaker, not since world War II has the Nation's military--active 
duty and Reserve forces--undergone such a massive mobilization and 
troop rotation effort. According to the Department of Defense, since 
September 11, 2001, over 400,000 reserve forces have been mobilized, 
some of these National Guard or Reserve members have been called up 
more than once, and some of our servicemembers have been activated for 
nearly twenty-four months due to extensions of their orders or 
prevented due to ``stop loss'' from leaving military service at their 
expected time.
  Needless to say, our armed forces are serving under stressful 
conditions, and they and their families are making great sacrifices. 
Accordingly, laws concerning reemployment rights, and legal and 
financial protections for our servicemembers play an integral part in 
their ability to serve the country. Indeed, if these laws are 
effectively administered and vigorously enforced, they not only provide 
comfort to our servicemembers and their families but they can also 
assist the Pentagon in in its recruitment and retention efforts.
  Mr. Speaker, this bill contains a host of quality provisions. I am 
particularly pleased that we have included measures to improve and 
perfect certain sections of the Servicemembers Civil Relief Act, such 
as defining certain terms under the Act; requiring that waivers of 
protections under the Act be highlighted and signed as separate 
documents; specify that the Act applies to either a plaintiff or 
defendant; clarify that dependents of servicemembers have the same 
right as the servicemember to terminate a lease when the servicemember 
is deployed or receives a permanent change of station; and prevents 
multiple taxation of certain servicemembers.
  H.R. 4658 also provides important and timely amendments to the 
Uniformed Services Employment and Reemployment Rights Act. One 
important provision would extend reservists' ability to continue 
employer-sponsored health coverage from 18 to 24 months; another 
provision establishes a demonstration project for the investigation and 
enforcement of federal USERRA complaints by the Office of Special 
Counsel. Finally, in the area of reemployment rights, this legislation 
includes a measure, originally introduced by my friend, Representative 
Jim McGovern of Massachusetts, to require employers to provide greater 
notice and awareness to employees about reservists' reemployment 
rights.
  I am also pleased that the bill contains a very important measure 
introduced by Susan Davis of California to enhance the fiduciary 
program within the VA. We must do a better job in protecting vulnerable 
veterans from financial misdeeds, neglect and manipulation by unsavory 
individuals or entities.
  I have been a member of the House of Representatives for over 20 
years. I cannot recall any instance when a proposal sent to the 
Congress by any Administration--Democratic or Republican--to address a 
problem in meeting the needs of veterans having been favorably reported 
by the Committee was barred from consideration on the floor by the 
House Leadership. Sadly that day has arrived.
  The bill we are considering today was overwhelmingly approved by the 
Committee with a provision which would enable the Secretary to include 
a limited benefit for the newborn children of veterans who are eligible 
for maternity care from the Department of Veterans Affairs (VA). This 
provision was designed to address the difficulty which the Secretary 
has had in obtaining contracts in order to provide timely and adequate 
maternity care to service-disabled and low-income veterans. It was also 
designed to address the high cost of such care, which is charged when 
no provision is made for payment of services to newborn children.
  As reported by the Committee, the bill would limit VA's liability by 
providing that VA payment would be made, only when there was no other 
resource, such as private health insurance or Medicaid responsible for 
the care. Care would only have been provided during the neonatal period 
and would have allowed a small window of time in order to obtain 
additional health care for those children who may qualify for other 
health care programs, such a Medicaid or State child health programs.
  What message does this send to servicewomen risking their life and 
health in Iraq and Afghanistan today? What message does this send to 
service-disabled women veterans seeking maternity care from the VA 
today? I am extremely disappointed that in order for this bill to be 
considered by the House, it was necessary to eliminate the provision 
addressing a serious problem which will affect an increasing number of 
servicewomen in the months and years to come. I hope that we will 
address this issue early in the next session of Congress. Those women 
who have sacrificed for us deserve no less.
  Mr. Speaker, H.R. 4658 includes many provisions aimed at protecting 
the legal, financial and employment rights of servicemembers, veterans 
and their families. Passing this bill sends the right message, and I 
urge all members to do just that.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise as a strong supporter 
of H.R. 4658, the Servicemembers Legal Protection Act of 2004,

[[Page 21274]]

which would amend the Servicemembers Civil Relief Act to make certain 
improvements and technical corrections to that Act. I want to thank 
Chairman Smith and Ranking Member Evans for bringing this necessary 
piece of legislation before this entire body.
  This legislation is one that is aimed at protecting members of the 
military by amending the Servicemembers Civil Relief Act (SCRA). The 
SCRA is a Federal law that updates and expands all military members' 
important financial and legal rights as they enter active duty or are 
deployed to new duty stations. This legislation recognizes the unique 
circumstances that members of the military are often faced with because 
of the nature of their work. This legislation prohibits tax 
jurisdictions from imposing use, excise, or similar taxes on the 
personal property of nonresident servicemembers absent a credit for 
such taxes paid on the same property in another tax jurisdiction. 
Members of the military are always ready to be on the move in order to 
serve our Nation, and we must protect their personal interests because 
of these unique circumstances.
  This legislation is also welcome because it protects the interests of 
the families of those who serve in the Armed Forces. This legislation 
states that a servicemember's termination of a residential or motor 
vehicle lease shall terminate any obligation of the servicemember's 
dependents under such lease. This provision is necessary because no 
family should have to bear the financial burden when a family member is 
asked to move to fulfill their orders in the Armed Forces. Again, I 
urge all Members to approve H.R. 4658, because we should never leave 
our brave men and women of the Armed Forces in the dark when it comes 
to protecting their financial and legal rights.
  Mr. McGOVERN. Mr. Speaker, I rise in strong support of H.R. 4658, the 
Servicemembers Legal Protection Act of 2004. This important legislation 
includes a number of provisions intended to enhance and improve the 
quality of life of our troops, veterans, and military families. 
Specifically, I would like to address Section 211 of H.R. 4658 that 
amends the Uniformed Services Employment and Reemployment Rights Act 
(USERRA).
  Since September 11, 2001, over 400,000 National Guardsmen and 
Reservists have been placed on active duty. Not since World War II have 
so many National Guardsmen and Reservist been called to active duty. 
They and their families face many burdens in service to their country. 
Their service has taken them away from not only their families, but 
their jobs as well.
  One burden faced by the men and women of the National Guard and 
Reserves is their employment status upon return from active duty. The 
uncertainty of their activation and period of time away from their jobs 
also severely affects their employers, a situation that has been 
compounded by extended deployments. The U.S. Chamber of Commerce has 
estimated that 70 percent of military reservists called to active-duty 
work in small or medium-size companies.
  In an effort to assist National Guardsmen, Reservists, and their 
employers, the National Committee for Employer Support of the Guard and 
Reserve (ESGR) was established to address potential problems arising 
among the Nation's employers. Trained ESGR employers manage to solve 
roughly 95 percent of the cases where problems have arisen when a 
Reserve or Guard member returns to his or her workplace through an 
informal process--without the Department of Labor having to get 
involved.
  What about the other five percent? According to the ESGR, many of the 
problems facing this five percent of cases grew out of a lack of 
understanding of the rights and responsibilities of employers and their 
returning employees.
  In response, I introduced H.R. 4477 with the bipartisan support of 
U.S. Representative Jeb Bradley. The Committee on Veterans Affairs 
incorporated H.R. 4477 into Section 211 of H.R. 4658, the bill the 
House is considering today. Section 211 is simple and straightforward. 
It seeks to promote understanding between employees and employers when 
it comes to their rights and obligations under USERRA. Section 211 
would require the Department of Labor to produce a poster--similar to 
the Family and Medical Leave poster-for employers to post at work 
sites.
  Mr. Speaker, many employers across the country either do not know 
about USERRA, or they are only vaguely aware of it. By not complying 
with USERRA, employers put themselves at risk of facing Department of 
Labor investigations. By educating employers and employees before 
potential violations, we can protect employers from costly litigation, 
potential fines, and public embarrassment.
  Mr. Speaker, Section 211 would not create additional paper work or 
burden employers with difficult Department of Labor requirements. In 
fact, Section 211 is an effort to educate employers and keep them from 
unknowingly breaking existing law.
  Let me briefly share with you how I came to introduce H.R. 4477. I 
was contacted by a constituent who is a member of the Massachusetts 
ESGR. He suggested that simply altering USERRA to require its posting 
would solve many of the problems that he had seen arise between 
employers and returning Reservists and Guardsmen. He described how many 
employers are not fully aware of their responsibilities under USERRA, 
and why many employees are afraid to exercise their rights, even though 
those rights are protected by USERRA. In posting USERRA and 
familiarizing themselves with the law, employers and employees will 
gain a deeper understanding of USERRA and preferably work out any 
potential conflicts before employees are activated.
  Mr. Speaker, I would like to thank Chairman Chris Smith and Ranking 
Member Lane Evans of the Committee on Veterans Affairs, as well as 
Chairman Henry Brown and Ranking Member Michael Michaud of the 
Subcommittee on Benefits, for moving forward with H.R. 4658. Their 
dedication and leadership on issues affecting the well-being of our 
veterans and uniformed men and women are appreciated and respected by 
all members of this House, including myself. I would also like to 
extend my thanks to the staff of the Committee on Veterans Affairs for 
their hard work on H.R. 4658. In particular, I would like to extend my 
deep appreciation to Geoffrey Collver of the Democratic Staff of the 
Committee on Veterans Affairs for working closely with me on Section 
211.
  Mr. Speaker, I strongly urge the adoption of H.R. 4658.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore (Mr. Ose). The question is on the motion 
offered by the gentleman from New Jersey (Mr. Smith) that the House 
suspend the rules and pass the bill, H.R. 4658, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  The title of the bill was amended so as to read: ``A bill to amend 
the Servicemembers Civil Relief Act to make certain improvements and 
technical corrections to that Act, otherwise to improve legal 
protections provided to reserve component members called to active 
duty, and for other purposes.''
  A motion to reconsider was laid on the table.

                          ____________________