[Congressional Record (Bound Edition), Volume 159 (2013), Part 11]
[House]
[Pages 16257-16262]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     DENIAL OF BENEFIT REQUIREMENT

  Mr. MILLER of Florida. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 1405) to amend title 38, United States Code, to 
require the Secretary of Veterans Affairs to include an appeals form in 
any notice of decision issued for the denial of a benefit sought, as 
amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

[[Page 16258]]



                               H.R. 1405

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. INCLUSION OF NOTICE OF DISAGREEMENT FORMS IN 
                   NOTICES OF DECISIONS OF BENEFITS DENIALS ISSUED 
                   BY SECRETARY OF VETERANS AFFAIRS.

       (a) In General.--Section 5104(b) of title 38, United States 
     Code, is amended--
       (1) by striking ``and (2)'' and inserting ``(2)''; and
       (2) by inserting before the period at the end the 
     following: ``, and (3) a form that may be used to file a 
     notice of disagreement to the decision''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to decisions made by the Secretary 
     under section 511 of title 38, United States Code, on or 
     after the date of the enactment of this Act.

     SEC. 2. PROVISION OF STATUS UNDER LAW BY HONORING CERTAIN 
                   MEMBERS OF THE RESERVE COMPONENTS AS VETERANS.

       (a) Veteran Status.--
       (1) In general.--Chapter 1 of title 38, United States Code, 
     is amended by inserting after section 107 the following new 
     section:

     ``Sec. 107A. Honoring as veterans certain persons who 
       performed service in the reserve components

       ``Any person who is entitled under chapter 1223 of title 10 
     to retired pay for nonregular service or, but for age, would 
     be entitled under such chapter to retired pay for nonregular 
     service shall be honored as a veteran but shall not be 
     entitled to any benefit by reason of this section.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 107 the following new item:
``107A. Honoring as veterans certain persons who performed service in 
              the reserve components.''.
       (b) Clarification Regarding Benefits.--No person may 
     receive any benefit under the laws administered by the 
     Secretary of Veterans Affairs solely by reason of section 
     107A of title 38, United States Code, as added by subsection 
     (a).

     SEC. 3. PROVISION OF ACCESS TO CASE-TRACKING INFORMATION.

       (a) In General.--Chapter 59 of title 38, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 5906. Provision of access to case-tracking information

       ``(a) In General.--(1) In accordance with subsection (b), 
     the Secretary shall provide a covered employee with access to 
     the case-tracking system to provide a veteran with 
     information regarding the status of a claim submitted by such 
     veteran if such employee is acting under written permission 
     or a power of attorney executed by such veteran.
       ``(2) In providing a covered employee with access to the 
     case-tracking system under paragraph (1), the Secretary shall 
     ensure--
       ``(A) that such access--
       ``(i) is provided in a manner that does not allow such 
     employee to modify the data contained in such system; and
       ``(ii) does not include access to medical records; and
       ``(B) that each time a covered employee accesses such 
     system, the employee must certify that such access is for 
     official purposes only.
       ``(b) Privacy Certification Course.--The Secretary may not 
     provide a covered employee with access to the case-tracking 
     system under subsection (a)(1) unless the covered employee 
     has successfully completed a certification course on privacy 
     issues provided by the Secretary.
       ``(c) Treatment of Disclosure.--The access to information 
     by a covered employee pursuant to subsection (a)(1) shall be 
     deemed to be--
       ``(1) a covered disclosure under section 552a(b) of title 
     5; and
       ``(2) a permitted disclosure under regulations promulgated 
     under section 264(c) of the Health Insurance Portability and 
     Accountability Act of 1996 (42 U.S.C. 1320d-2 note).
       ``(d) Definitions.--In this section:
       ``(1) The term `case-tracking system' means the system of 
     the Department of Veterans Affairs that provides information 
     regarding the status of a claim submitted by a veteran.
       ``(2) The term `covered employee' means an employee of a 
     State or local governmental agency (including a veterans 
     service officer) who, in the course of carrying out the 
     responsibilities of such employment, assists veterans with 
     claims for any benefit under the laws administered by the 
     Secretary.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:
``5906. Provision of access to case-tracking information.''.

     SEC. 4. IMPROVEMENT OF FIDUCIARIES FOR VETERANS.

       (a) Appointment and Supervision.--
       (1) Section 5502 of title 38, United States Code, is 
     amended to read as follows:

     ``Sec. 5502. Appointment of fiduciaries

       ``(a) Appointment.--(1) Where it appears to the Secretary 
     that the interest of the beneficiary would be served thereby, 
     payment of benefits under any law administered by the 
     Secretary may be made directly to the beneficiary or to a 
     relative or some other fiduciary for the use and benefit of 
     the beneficiary, regardless of any legal disability on the 
     part of the beneficiary.
       ``(2) When in the opinion of the Secretary, a temporary 
     fiduciary is needed in order to protect the benefits provided 
     to the beneficiary under any law administered by the 
     Secretary 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) Appeals.--(1) If the Secretary determines a 
     beneficiary to be mentally incompetent for purposes of 
     appointing a fiduciary under this chapter, the Secretary 
     shall provide such beneficiary with a written statement 
     detailing the reasons for such determination.
       ``(2) A beneficiary whom the Secretary has determined to be 
     mentally incompetent for purposes of appointing a fiduciary 
     under this chapter may appeal such determination.
       ``(c) Modification.--(1) A beneficiary for whom the 
     Secretary appoints a fiduciary under this chapter may, at any 
     time, request the Secretary to--
       ``(A) remove the fiduciary so appointed; and
       ``(B) have a new fiduciary appointed.
       ``(2) The Secretary shall comply with a request under 
     paragraph (1) if the Secretary determines that the request is 
     made in good faith and--
       ``(A) the fiduciary requested to be removed receives a fee 
     from the beneficiary and a suitable volunteer fiduciary is 
     available to assist the beneficiary; or
       ``(B) the beneficiary provides credible information that 
     the fiduciary requested to be removed is--
       ``(i) not acting in the interest of the beneficiary ;or
       ``(ii) unable to effectively serve the beneficiary because 
     of an irreconcilable personality conflict or disagreement.
       ``(3) The Secretary shall ensure that any removal or new 
     appointment of a fiduciary under paragraph (1) does not delay 
     or interrupt the beneficiary's receipt of benefits 
     administered by the Secretary.
       ``(d) Independence.--A fiduciary appointed by the Secretary 
     shall operate independently of the Department to determine 
     the actions that are in the interest of the beneficiary.
       ``(e) Predesignation.--A veteran may predesignate a 
     fiduciary by--
       ``(1) submitting written notice to the Secretary of the 
     predesignated fiduciary; or
       ``(2) submitting a form provided by the Secretary for such 
     purpose.
       ``(f) Appointment of Non-Predesignated Fiduciary.--If a 
     beneficiary designates an individual to serve as a fiduciary 
     under subsection (e) and the Secretary appoints an individual 
     not so designated as the fiduciary for such beneficiary, the 
     Secretary shall notify such beneficiary of--
       ``(1) the reason why such designated individual was not 
     appointed; and
       ``(2) the ability of the beneficiary to modify the 
     appointed fiduciary under subsection (c).
       ``(g) Priority of Appointment.--In appointing a fiduciary 
     under this chapter, if a beneficiary does not designate a 
     fiduciary pursuant to subsection (e), to the extent possible 
     the Secretary shall appoint a person who is--
       ``(1) a relative of the beneficiary;
       ``(2) appointed as guardian of the beneficiary by a court 
     of competent jurisdiction; or
       ``(3) authorized to act on behalf of the beneficiary under 
     a durable power of attorney.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 55 of title 38, United States Code, is 
     amended by striking the item relating to section 5502 and 
     inserting the following:
``5502. Appointment of fiduciaries.''.
       (b) Supervision.--
       (1) In general.--Chapter 55 of title 38, United States 
     Code, is amended by inserting after section 5502, as amended 
     by subsection (a)(1), the following new section:

     ``Sec. 5502A. Supervision of fiduciaries

       ``(a) Commission.--(1)(A) In a case in which the Secretary 
     determines that a commission is necessary in order to obtain 
     the services of a fiduciary in the best interests of a 
     beneficiary, the Secretary may authorize a fiduciary 
     appointed by the Secretary to obtain from the monthly 
     benefits provided to the beneficiary a reasonable commission 
     for fiduciary services rendered, but the commission for any 
     month may not exceed the lesser of the following amounts:
       ``(i) The amount that equals three percent of the monthly 
     monetary benefits under laws administered by the Secretary 
     paid on behalf of the beneficiary to the fiduciary.
       ``(ii) $35.
       ``(B) A commission paid under this paragraph may not be 
     derived from any award to a beneficiary regarding back pay or 
     retroactive benefits payments.

[[Page 16259]]

       ``(C) A commission may not be authorized for a fiduciary 
     who receives any other form of remuneration or payment in 
     connection with rendering fiduciary services for benefits 
     under this title on behalf of the beneficiary.
       ``(D) In accordance with section 6106 of this title, a 
     commission may not be paid to a fiduciary if the Secretary 
     determines that the fiduciary misused any benefit payments of 
     a beneficiary.
       ``(E) If the Secretary determines that the fiduciary has 
     misused any benefit or payments of a beneficiary, the 
     Secretary may revoke the fiduciary status of the fiduciary.
       ``(2) Where, in the opinion of the Secretary, any fiduciary 
     receiving funds on behalf of a Department beneficiary is 
     acting in such a number of cases as to make it impracticable 
     to conserve properly the estates or to supervise the persons 
     of the beneficiaries, the Secretary may refuse to make future 
     payments in such cases as the Secretary may deem proper.
       ``(b) Court.--Whenever it appears that any fiduciary, in 
     the opinion of the Secretary, is not properly executing or 
     has not properly executed the duties of the trust of such 
     fiduciary or has collected or paid, or is attempting to 
     collect or pay, fees, commissions, or allowances that are 
     inequitable or in excess of those allowed by law for the 
     duties performed or expenses incurred, or has failed to make 
     such payments as may be necessary for the benefit of the ward 
     or the dependents of the ward, then the Secretary may appear, 
     by the Secretary's authorized attorney, in the court which 
     has appointed such fiduciary, or in any court having 
     original, concurrent, or appellate jurisdiction over said 
     cause, and make proper presentation of such matters. The 
     Secretary, in the Secretary's discretion, may suspend 
     payments to any such fiduciary who shall neglect or refuse, 
     after reasonable notice, to render an account to the 
     Secretary from time to time showing the application of such 
     payments for the benefit of such incompetent or minor 
     beneficiary, or who shall neglect or refuse to administer the 
     estate according to law. The Secretary may require the 
     fiduciary, as part of such account, to disclose any 
     additional financial information concerning the beneficiary 
     (except for information that is not available to the 
     fiduciary). The Secretary may appear or intervene by the 
     Secretary's duly authorized attorney in any court as an 
     interested party in any litigation instituted by the 
     Secretary or otherwise, directly affecting money paid to such 
     fiduciary under this section.
       ``(c) Payment of Certain Expenses.--Authority is hereby 
     granted for the payment of any court or other expenses 
     incident to any investigation or court proceeding for the 
     appointment of any fiduciary or other person for the purpose 
     of payment of benefits payable under laws administered by the 
     Secretary or the removal of such fiduciary and appointment of 
     another, and of expenses in connection with the 
     administration of such benefits by such fiduciaries, or in 
     connection with any other court proceeding hereby authorized, 
     when such payment is authorized by the Secretary.
       ``(d) Temporary Payment of Benefits.--All or any part of 
     any benefits the payment of which is suspended or withheld 
     under this section may, in the discretion of the Secretary, 
     be paid temporarily to the person having custody and control 
     of the incompetent or minor beneficiary, to be used solely 
     for the benefit of such beneficiary, or, in the case of an 
     incompetent veteran, may be apportioned to the dependent or 
     dependents, if any, of such veteran. Any part not so paid and 
     any funds of a mentally incompetent or insane veteran not 
     paid to the chief officer of the institution in which such 
     veteran is a patient nor apportioned to the veteran's 
     dependent or dependents may be ordered held in the Treasury 
     to the credit of such beneficiary. All funds so held shall be 
     disbursed under the order and in the discretion of the 
     Secretary for the benefit of such beneficiary or the 
     beneficiary's dependents. Any balance remaining in such fund 
     to the credit of any beneficiary may be paid to the 
     beneficiary if the beneficiary recovers and is found 
     competent, or if a minor, attains majority, or otherwise to 
     the beneficiary's fiduciary, or, in the event of the 
     beneficiary's death, to the beneficiary's personal 
     representative, except as otherwise provided by law; however, 
     payment will not be made to the beneficiary's personal 
     representative if, under the law of the beneficiary's last 
     legal residence, the beneficiary's estate would escheat to 
     the State. In the event of the death of a mentally 
     incompetent or insane veteran, all gratuitous benefits under 
     laws administered by the Secretary deposited before or after 
     August 7, 1959, in the personal funds of patients trust fund 
     on account of such veteran shall not be paid to the personal 
     representative of such veteran, but shall be paid to the 
     following persons living at the time of settlement, and in 
     the order named: The surviving spouse, the children (without 
     regard to age or marital status) in equal parts, and the 
     dependent parents of such veteran, in equal parts. If any 
     balance remains, such balance shall be deposited to the 
     credit of the applicable current appropriation; except that 
     there may be paid only so much of such balance as may be 
     necessary to reimburse a person (other than a political 
     subdivision of the United States) who bore the expenses of 
     last sickness or burial of the veteran for such expenses. No 
     payment shall be made under the two preceding sentences of 
     this subsection unless claim therefor is filed with the 
     Secretary within five years after the death of the veteran, 
     except that, if any person so entitled under said two 
     sentences is under legal disability at the time of death of 
     the veteran, such five-year period of limitation shall run 
     from the termination or removal of the legal disability.
       ``(e) Escheatment.--Any funds in the hands of a fiduciary 
     appointed by a State court or the Secretary derived from 
     benefits payable under laws administered by the Secretary, 
     which under the law of the State wherein the beneficiary had 
     last legal residence would escheat to the State, shall 
     escheat to the United States and shall be returned by such 
     fiduciary, or by the personal representative of the deceased 
     beneficiary, less legal expenses of any administration 
     necessary to determine that an escheat is in order, to the 
     Department, and shall be deposited to the credit of the 
     applicable revolving fund, trust fund, or appropriation.
       ``(f) Assistance.--The Secretary shall provide to a 
     fiduciary appointed under section 5502 of this title 
     materials and tools to assist the fiduciary in carrying out 
     the responsibilities of the fiduciary under this chapter, 
     including--
       ``(1) handbooks, brochures, or other written material that 
     explain the responsibilities of a fiduciary under this 
     chapter;
       ``(2) tools located on an Internet website, including forms 
     to submit to the Secretary required information; and
       ``(3) assistance provided by telephone.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 55 of title 38, United States Code, is 
     amended by inserting after the item relating to section 5502 
     the following new item:
``5502A. Supervision of fiduciaries.''.
       (c) Definition of Fiduciary.--Section 5506 of title 38, 
     United States Code is amended--
       (1) by striking ``For purposes'' and inserting ``(a) For 
     purposes''; and
       (2) by adding at the end the following new subsection:
       ``(b)(1) For purposes of subsection (a), the term `person' 
     includes any--
       ``(A) State or local government agency whose mission is to 
     carry out income maintenance, social service, or health care-
     related activities;
       ``(B) any State or local government agency with fiduciary 
     responsibilities; or
       ``(C) any nonprofit social service agency that the 
     Secretary determines--
       ``(i) regularly provides services as a fiduciary 
     concurrently to five or more individuals; and
       ``(ii) is not a creditor of any such individual.
       ``(2) The Secretary shall maintain a list of State or local 
     agencies and nonprofit social service agencies under 
     paragraph (1) that are qualified to act as a fiduciary under 
     this chapter. In maintaining such list, the Secretary may 
     consult the lists maintained under section 807(h) of the 
     Social Security Act (42 U.S.C. 1007(h)).''.
       (d) Qualifications.--Section 5507 of title 38, United 
     States Code, is amended to read as follows:

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

       ``(a) Investigation.--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 to be conducted in advance of such certification 
     and in accordance with subsection (b);
       ``(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);
       ``(3) adequate evidence that the person to serve as 
     fiduciary protects the private information of a beneficiary 
     in accordance with subsection (d)(1); and
       ``(4) the furnishing of any bond that may be required by 
     the Secretary in accordance with subsection (f).
       ``(b) Elements of Investigation.--(1) In conducting an 
     inquiry or investigation of a proposed fiduciary under 
     subsection (a)(1), the Secretary shall conduct--
       ``(A) a face-to-face interview with the proposed fiduciary 
     by not later than 30 days after the date on which such 
     inquiry or investigation begins; and
       ``(B) a background check of the proposed fiduciary to--
       ``(i) in accordance with paragraph (2), determine whether 
     the proposed fiduciary has been convicted of a crime; and
       ``(ii) determine whether the proposed fiduciary will serve 
     the best interest of the beneficiary, including by conducting 
     a credit check of the proposed fiduciary and checking the 
     records under paragraph (5).
       ``(2) The Secretary shall request information concerning 
     whether that person has been convicted of any offense under 
     Federal or State law. If that person has been convicted of 
     such an offense, the Secretary may certify the person as a 
     fiduciary only if the

[[Page 16260]]

     Secretary finds that the person is an appropriate person to 
     act as fiduciary for the beneficiary concerned under the 
     circumstances.
       ``(3) The Secretary shall conduct the background check 
     described in paragraph (1)(B)--
       ``(A) each time a person is proposed to be a fiduciary, 
     regardless of whether the person is serving or has served as 
     a fiduciary; and
       ``(B) at no expense to the beneficiary.
       ``(4) Each proposed fiduciary shall disclose to the 
     Secretary the number of beneficiaries that the fiduciary acts 
     on behalf of.
       ``(5) The Secretary shall maintain records of any person 
     who has--
       ``(A) previously served as a fiduciary; and
       ``(B) had such fiduciary status revoked by the Secretary.
       ``(6)(A) If a fiduciary appointed by the Secretary is 
     convicted of a crime described in subparagraph (B), the 
     Secretary shall notify the beneficiary of such conviction by 
     not later than 14 days after the date on which the Secretary 
     learns of such conviction.
       ``(B) A crime described in this subparagraph is a crime--
       ``(i) for which the fiduciary is convicted while serving as 
     a fiduciary for any person;
       ``(ii) that is not included in a report submitted by the 
     fiduciary under section 5509(a) of this title; and
       ``(iii) that the Secretary determines could affect the 
     ability of the fiduciary to act on behalf of the beneficiary.
       ``(c) Investigation of Certain Persons.--(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 giving 
     priority to conducting such inquiry or investigation. 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;
       ``(D) being appointed to manage an estate where the annual 
     amount of veterans benefits to be managed by the proposed 
     fiduciary does not exceed $3,600, as adjusted pursuant to 
     section 5312 of this title; or
       ``(E) a person who is authorized to act on behalf of the 
     beneficiary under a durable power of attorney.
       ``(d) Protection of Private Information.--(1) A fiduciary 
     shall take all reasonable precautions to--
       ``(A) protect the private information of a beneficiary, 
     including personally identifiable information; and
       ``(B) securely conducts financial transactions.
       ``(2) A fiduciary shall notify the Secretary of any action 
     of the fiduciary that compromises or potentially compromises 
     the private information of a beneficiary.
       ``(e) Potential Misuse of Funds.--(1) If the Secretary has 
     reason to believe that a fiduciary may be misusing all or 
     part of the benefit of a beneficiary, the Secretary shall--
       ``(A) conduct a thorough investigation to determine the 
     veracity of such belief; and
       ``(B) if such veracity is established, transmit to the 
     officials described in paragraph (2) a report of such 
     investigation.
       ``(2) The officials described in this paragraph are the 
     following:
       ``(A) The Attorney General.
       ``(B) Each head of a Federal department or agency that pays 
     to a fiduciary or other person benefits under any law 
     administered by such department of agency for the use and 
     benefit of a minor, incompetent, or other beneficiary.
       ``(f) Bond.--In determining whether a proposed fiduciary is 
     required to furnish a bond under subsection (a)(4), the 
     Secretary shall consider--
       ``(1) the existence of any familial or other personal 
     relationship between the proposed fiduciary and the 
     beneficiary; and
       ``(2) the care the proposed fiduciary has taken to protect 
     the interests of the beneficiary.
       ``(g) List of Fiduciaries.--Each regional office of the 
     Veterans Benefits Administration shall maintain a list of the 
     following:
       ``(1) The name and contact information of each fiduciary, 
     including address, telephone number, and email address.
       ``(2) With respect to each fiduciary described in paragraph 
     (1)--
       ``(A) the date of the most recent background check and 
     credit check performed by the Secretary under this section;
       ``(B) the date that any bond was paid under this section;
       ``(C) the name, address, and telephone number of each 
     beneficiary the fiduciary acts on behalf of; and
       ``(D) the amount that the fiduciary controls with respect 
     to each beneficiary described in subparagraph (C).''.
       (e) Annual Receipt of Payments.--
       (1) In general.--Section 5509 of title 38, United States 
     Code, is amended--
       (A) in subsection (a)----
       (i) by striking ``may require a fiduciary to file a'' and 
     inserting ``shall require a fiduciary to file an annual''; 
     and
       (ii) by adding at the end the following new sentence: ``The 
     Secretary shall transmit such annual report or accounting to 
     the beneficiary and any legal guardian of such 
     beneficiary.'';
       (B) by adding at the end the following new subsections:
       ``(c) Matters Included.--Except as provided by subsection 
     (f), an annual report or accounting under subsection (a) 
     shall include the following:
       ``(1) For each beneficiary that a fiduciary acts on behalf 
     of--
       ``(A) the amount of the benefits of the beneficiary 
     provided under any law administered by the Secretary accrued 
     during the year, the amount spent, and the amount remaining; 
     and
       ``(B) if the fiduciary serves the beneficiary with respect 
     to benefits not administered by the Secretary, an accounting 
     of all sources of benefits or other income the fiduciary 
     oversees for the beneficiary.
       ``(2) A list of events that occurred during the year 
     covered by the report that could affect the ability of the 
     fiduciary to act on behalf of the beneficiary, including--
       ``(A) the fiduciary being convicted of any crime;
       ``(B) the fiduciary declaring bankruptcy; and
       ``(C) any judgments entered against the fiduciary.
       ``(d) Random Audits.--The Secretary shall annually conduct 
     random audits of fiduciaries who receive a commission 
     pursuant to subsection 5502A(a)(1) of this title.
       ``(e) Status of Fiduciary.--If a fiduciary includes in the 
     annual report events described in subsection (c)(2), the 
     Secretary may take appropriate action to adjust the status of 
     the fiduciary as the Secretary determines appropriate, 
     including by revoking the fiduciary status of the fiduciary.
       ``(f) Caregivers and Certain Other Fiduciaries.--(1)(A) In 
     carrying out this section, the Secretary shall ensure that a 
     caregiver fiduciary is required only to file an annual report 
     or accounting under subsection (a) with respect to the amount 
     of the benefits of the beneficiary provided under any law 
     administered by the Secretary--
       ``(i) spent on--
       ``(I) food and housing for the beneficiary; and
       ``(II) clothing, health-related expenses, recreation, and 
     other personal items for the beneficiary; and
       ``(ii) saved for the beneficiary.
       ``(B) The Secretary shall coordinate with the Under 
     Secretary for Benefits and the Under Secretary for Health 
     to--
       ``(i) minimize the frequency with which employees of the 
     Department visit the home of a caregiver fiduciary and 
     beneficiary; and
       ``(ii) limit the extent of supervision by such Under 
     Secretaries with respect to such a fiduciary and beneficiary.
       ``(C) In this paragraph, the term `caregiver fiduciary' 
     means a fiduciary who--
       ``(i) in addition to acting as a fiduciary for a 
     beneficiary, is approved by the Secretary to be a provider of 
     personal care services for the beneficiary under paragraph 
     (3)(A)(i) of section 1720G(a) of this title;
       ``(ii) in carrying out such care services to such 
     beneficiary, has undergone not less than four home visits 
     under paragraph (9)(A) of such section; and
       ``(iii) has not been required by the Secretary to take 
     corrective action pursuant to paragraph (9)(C) of such 
     section.
       ``(2) In carrying out this section, the Secretary may 
     adjust the matters required under an annual report or 
     accounting under subsection (a) with respect to a fiduciary 
     whom the Secretary determines to have effectively protected 
     the interests of the beneficiary over a sustained period.''; 
     and
       (C) by striking the section heading and inserting the 
     following: ``Annual reports and accountings of fiduciaries''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 55 of title 38, United States Code, is 
     amended by striking the item relating to section 5509 and 
     inserting the following new item:
``5509. Annual reports and accountings of fiduciaries.''.
       (f) Repayment of Misused Benefits.--Section 6107(a)(2)(C) 
     of title 38, United States Code, is amended by inserting 
     before the period the following: ``, including by the 
     Secretary not acting in accordance with section 5507 of this 
     title''.
       (g) Annual Reports.--Section 5510 of title 38, United 
     States Code, is amended by striking ``The Secretary shall 
     include in the Annual Benefits Report of the Veterans 
     Benefits Administration or the Secretary's Annual Performance 
     and Accountability Report'' and inserting ``Not later than 
     July 1 of each year, the Secretary shall submit to the 
     Committees on Veterans' Affairs of the House of 
     Representatives and the Senate a separate report 
     containing''.
       (h) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of Veterans Affairs 
     shall submit to the Committee on Veterans' Affairs of the 
     Senate and the Committee on Veterans' Affairs of the House of 
     Representatives a comprehensive report on the implementation 
     of

[[Page 16261]]

     the amendments made by this Act, including--
       (1) detailed information on the establishment of new 
     policies and procedures pursuant to such amendments and 
     training provided on such policies and procedures; and
       (2) a discussion of whether the Secretary should provide 
     fiduciaries with standardized financial software to simplify 
     reporting requirements.

     SEC. 5. LIMITATION ON AWARDS AND BONUSES TO EMPLOYEES OF 
                   DEPARTMENT OF VETERANS AFFAIRS.

       For each of fiscal years 2014 through 2018, the Secretary 
     of Veterans Affairs may not pay more than $345,000,000 in 
     awards or bonuses under chapter 45 or 53 of title 5, United 
     States Code, or any other awards or bonuses authorized under 
     such title.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida (Mr. Miller) and the gentlewoman from Nevada (Ms. Titus) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Florida.


                             General Leave

  Mr. MILLER of Florida. Mr. Speaker, I ask unanimous consent that all 
Members have 5 legislative days in which to revise and extend their 
remarks and add any extraneous material they may have on H.R. 1405, as 
amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. MILLER of Florida. Mr. Speaker, I yield myself such time as I may 
consume.
  I want to commend the gentlewoman from Nevada (Ms. Titus) for 
identifying another step in cleaning up the claims process. Her bill 
also includes provisions authored by the former sergeant major of the 
Minnesota National Guard, Mr. Walz, to provide honorary veteran status 
to members of the National Guard and Reserves.
  H.R. 1405 would also improve access to veterans' claims information 
by certain State and local government officials. And finally, the bill 
would revise the process by which fiduciary agents are assigned and 
limit the amount of bonuses that can be paid under chapters 45 and 53 
of title V.
  Again, I know that there are other Members who wish to speak in more 
detail on the provisions of this bill, so at this time, I will reserve 
the balance of my time.
  Ms. TITUS. Mr. Speaker, I yield myself such time as I may consume.
  I rise in support of H.R. 1405, as amended.
  I introduced this legislation, H.R. 1405, to improve the veterans' 
claims appeals process. Currently, a veteran must first exercise his or 
her appeal rights before the appeal process formally begins and the VA 
sends the required forms.
  H.R. 1405, as amended, requires the VA to include an appeals form 
with the notice of decision for every claim. This cuts out several 
steps and speeds up the appeals process. This commonsense change will 
immediately reduce the time frame of the appeals process by 60 days.
  H.R. 1405 will also allow the VA to provide better customer service 
to those veterans who are already struggling with significant delays 
and bureaucratic challenges.
  This legislation is, indeed, a commonsense improvement that will 
result in veterans in southern Nevada receiving the benefits they have 
earned in a timely fashion. I constantly hear from veterans in Las 
Vegas that the process is too complicated and takes too long. This 
change will eliminate an unnecessary bureaucratic step and speed up the 
process for those veterans and all our veterans across the country.
  H.R. 1405, as amended, is supported by the VA and the veterans 
service organizations who came and testified.
  This piece of legislation also includes language from three other 
bills: H.R. 679, the Honor America's Guard-Reserve Retirees Act, 
introduced by Representative Walz of Minnesota; Chairman Runyan's bill, 
H.R. 733, the Access to Veterans Benefits Improvement Act; and Mr. 
Johnson's bill, H.R. 894, to reform VA's fiduciary program.
  I want to thank the chairman of our subcommittee, Mr. Runyan, for 
moving this legislation through the subcommittee and for the bipartisan 
cooperation that guides our work on behalf of Nevada's veterans.

                              {time}  1730

  I also want to thank the many veteran service organizations for their 
helpful input and for supporting this legislation.
  I urge my colleagues to support passage of H.R. 1405, and I reserve 
the balance of my time.
  Mr. MILLER of Florida. Mr. Speaker, I yield 2 minutes to the 
gentleman from New Jersey (Mr. Runyan), the subcommittee chairman for 
Disability Assistance and Memorial Affairs.
  Mr. RUNYAN. Thank you, Chairman Miller, for yielding.
  Mr. Speaker, I am proud to have sponsored H.R. 733, the Access to 
Veterans Benefits Improvement Act, with my good friend and colleague, 
Mr. Tim Walz of Minnesota. This legislation is included as section 3 of 
H.R. 1405 and would provide certain local and State government 
employees access to case-tracking information through the Department of 
Veterans Affairs.
  There is no doubt that we have a responsibility to veterans to ensure 
that every effort is made to simplify the claims process. Key to this 
effort are the County Service Veterans Officers, whose expertise in 
claims development helps veterans in New Jersey and in communities all 
across America.
  Veterans are often frustrated, as they ask for help from a county 
service officer, that this person acting on their behalf cannot 
directly access even the most basic information about the status of 
their claim. However, while looking to remedy that complication and 
broaden access to case-tracking information, consideration must also be 
given to the protection of veterans' private information. That is the 
balance that this bill strikes.
  Mr. Speaker, I support section 3 of H.R. 1405, along with all the 
other provisions contained within the bill, and I encourage all Members 
to join me in support of the legislation.
  Ms. TITUS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Minnesota (Mr. Walz), who brings incredible expertise and compassion to 
the committee as a decorated veteran himself.
  Mr. WALZ. Mr. Speaker, I would like to thank the chairman and the 
ranking member of the full committee and the subcommittees for doing 
exceptional work, for putting our veterans first, for bringing a 
package of commonsense legislation to honor our Nation's veterans, and 
doing it in the best and smartest manner we can. If the entire Congress 
functioned like the VA Committee, I think the American public would be 
far better served.
  There is a provision in this bill that is very simple. It recognizes 
the service and sacrifice of members of the National Guard and 
Reserves. These are the men and women of our Reserve component. They 
take the same oath of office. They do the same training. They and their 
family sacrifice their time and energy and stand at the ready at all 
times. They assist flood victims in Colorado and Minnesota, fight fires 
across the Western United States, and stand ready to fight and defend 
this Nation at a moment's notice. They truly are the minutemen.
  I would guess that the vast majority of Americans and maybe even 
Members of this body don't recognize that you can serve 20 years doing 
that, and if you are not called to a specific title X service, you 
cannot be considered a veteran. You can go to the VA hospital, you can 
go use the GI Bill, you can be buried in a veterans' cemetery, but you 
are technically a military retiree.
  This may seem like a small thing, but it is not. The title of 
``veteran'' means more than just a license plate you get from your 
State. It is something your neighbors know about. These people don't 
and should not have to explain that they are technically not a veteran.
  This piece of legislation--and I thank, again, the people who made 
this possible--simply corrects that. Very seldom do we get a chance to 
do this. It doesn't add any cost, and it does the right thing. So it is 
not an added benefit--which was earned, by the way. It simply corrects 
this, puts it in line, and honors. If you serve 20 or more years in 
uniform, you stand ready, you

[[Page 16262]]

train people who went to war, we are going to give you the dignity and 
the honor of calling you a veteran.
  So I ask my colleagues to support this important package of 
legislation. This one small piece is the right thing to do. It is many, 
many years overdue. I ask for the support of H.R. 1405.
  Mr. MILLER of Florida. Mr. Speaker, at this time I yield 2 minutes to 
the gentleman from Ohio (Mr. Johnson), a former member of the VA 
Committee and a 26-plus year veteran of the United States Air Force.
  Mr. JOHNSON of Ohio. I thank the chairman for recognizing me.
  Mr. Speaker, I rise in strong support today of H.R. 1405, which, in 
addition to improving the disability claims appeals process for 
veterans, contains language from H.R. 894, legislation I introduced to 
provide necessary reforms to the Department of Veterans Affairs' 
Fiduciary Program.
  In response to an investigation by the Oversight and Investigations 
Subcommittee, which I chaired in the last Congress, this legislation 
includes significant changes that will strengthen the VA's standards 
for administering the Fiduciary Program and increase protection for 
vulnerable veterans.
  Requiring background checks and lowering the fee a fiduciary can 
charge would increase scrutiny over fiduciaries and help root out 
potential predators. It also adds a layer of protection for veterans 
with fiduciaries by allowing veterans to petition to have their 
fiduciary removed and replaced. Importantly, it would also enable 
veterans to appeal their incompetency status at any time. That is a 
right not currently granted to veterans.
  I would like to thank Chairman Runyan and Ranking Member Titus of the 
Disability Assistance and Memorial Affairs Subcommittee for their 
support of this legislation, and I urge my colleagues to support it.
  Ms. TITUS. Mr. Speaker, I would urge my colleagues to join us in 
support of H.R. 1405, as amended, and I yield back the balance of my 
time.
  Mr. MILLER of Florida. Mr. Speaker, H.R. 1405, as amended, is yet 
another bipartisan bill that has been advanced out of our committee. I, 
again, thank all the members for their collaborative work on this bill, 
and I urge my colleagues to join us in passing H.R. 1405, as amended, 
and I yield back the balance of my time.
  Mr. GINGREY of Georgia. Mr. Speaker, I rise today in support of H.R. 
1405. This straightforward legislation contains several provisions 
relating to veterans benefits, and also includes a cut in bonuses at 
the Department of Veterans Affairs.
  Under current practice, the VA pays out about $400 million in bonuses 
to its workers each year. Recently we have seen these bonuses too often 
go to people whose work does not merit a reward, and to the contrary, 
may even merit reprimand.
  This practice has been evident at the Atlanta VA Medical Center, 
where despite the fact that four unexpected deaths were attributed to 
mismanagement and lack of oversight, tens of thousands of dollars in 
bonuses were awarded to top level executives at the facility. It is 
past time that we stop rewarding people for simply showing up to work--
bonuses should be the exception, not the norm. Furthermore, at a time 
when so many of our soldiers are returning from war, and in light of 
the deaths in Atlanta, I believe the VA should prioritize veterans' 
health and well-being above all else.
  H.R. 1405 takes a positive step in ensuring that more discretion is 
used when providing bonus payments to employees at the VA. The 
legislation caps financial awards at the VA to no more than $345 
million for fiscal years 2014 to 2018. It is time we stop rewarding 
lackluster work and focus instead on providing the best possible care 
for our veterans.
  Mr. Speaker, I urge my colleagues to join me in showing our gratitude 
for our nation's veterans by supporting H.R. 1405.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Florida (Mr. Miller) that the House suspend the rules 
and pass the bill, H.R. 1405, as amended.
  The question was taken; and (two-thirds being in the affirmative) 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 
title 38, United States Code, to require the Secretary of Veterans 
Affairs to include a notice of disagreement form in any notice of 
decision issued for the denial of a benefit sought, to improve the 
supervision of fiduciaries of veterans under the laws administered by 
the Secretary of Veterans Affairs, and for other purposes.''.
  A motion to reconsider was laid on the table.

                          ____________________