109th CONGRESS
2d Session
H. R. 5520
To establish the Office of Veterans Identity Protection Claims
to reimburse injured persons for injuries suffered as a result of the unauthorized
use, disclosure, or dissemination of identifying information stolen from
the Department of Veterans Affairs, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
May 25, 2006
Mrs. WILSON of New Mexico (for herself, Mr. PLATTS, Mr. RENZI, Mr. HAYWORTH,
Mr. GUTKNECHT, Mr. GARRETT of New Jersey, Mr. LEACH, Ms. ROS-LEHTINEN, Mr.
SIMMONS, Mrs. KELLY, Mr. HEFLEY, Mr. COLE of Oklahoma, Mr. KLINE, Mr. BARRETT
of South Carolina, Mrs. BLACKBURN, Ms. GRANGER, Mr. CARTER, Mrs. JOHNSON
of Connecticut, Mr. SWEENEY, Mrs. MILLER of Michigan, Mr. SKELTON, Mr. SPRATT,
Mr. HALL, Mr. SHERWOOD, Mr. GERLACH, Mrs. NORTHUP, Mr. LOBIONDO, Mr. ROGERS
of Michigan, Mr. REICHERT, Mr. MCCAUL of Texas, Mr. SULLIVAN, Mr. BURGESS,
Mr. GOHMERT, Mr. MARIO DIAZ-BALART of Florida, Mr. LINCOLN DIAZ-BALART of
Florida, Ms. GINNY BROWN-WAITE of Florida, Mr. DAVIS of Kentucky, Mr. HASTINGS
of Florida, Mr. ABERCROMBIE, Mr. MEEHAN, Mr. MILLER of Florida, Mr. ADERHOLT,
Mr. CRENSHAW, Mr. JENKINS, Mr. GOODE, Mr. JONES of North Carolina, Mrs.
CUBIN, Mr. ROGERS of Alabama, Mr. EVERETT, Mr. BRADLEY of New Hampshire,
Mr. BEAUPREZ, Mr. GINGREY, Mr. ISTOOK, Mr. TOM DAVIS of Virginia, Mrs. DRAKE,
Mrs. SCHMIDT, Mr. LUCAS, Mr. KIRK, Mr. WOLF, Mr. ROTHMAN, Mr. SHIMKUS, Mr.
TAYLOR of Mississippi, Mr. HULSHOF, Ms. HART, Mr. SHAYS, Mr. LANGEVIN, Mr.
WAMP, Mr. SALAZAR, Mr. PORTER, Mr. FRANKS of Arizona, Mr. SESSIONS, Mr.
HOEKSTRA, and Mr. HASTINGS of Washington) introduced the following bill;
which was referred to the Committee on the Judiciary
A BILL
To establish the Office of Veterans Identity Protection Claims
to reimburse injured persons for injuries suffered as a result of the unauthorized
use, disclosure, or dissemination of identifying information stolen from
the Department of Veterans Affairs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Veterans Identity Protection Act', or the
`VIP Act'.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to reimburse injured persons for injuries suffered as a result of
the unauthorized use, disclosure, or dissemination of identifying information
stolen from the home of an employee of the Department of Veterans Affairs
on or around May 3, 2006; and
(2) to provide for the expeditious consideration and settlement of claims
for those injuries.
SEC. 3. DEFINITIONS.
(1) DIRECTOR- The term `Director' means the Director of the Office of
Veterans Identity Protection Claims.
(2) INJURED PERSON- The term `injured person' means an individual--
(A) whose name or other personal identifying information was part of
the data of the Department of Veterans Affairs that was stolen from
the home of an employee of the Department of Veterans Affairs on or
around May 3, 2006; and
(B) who suffered an injury as a result of the unauthorized use, disclosure,
or dissemination of personal identifying information that was included
in the data described in subparagraph (A).
(3) OFFICE- The term `Office' means the Office of Veterans Identity Protection
Claims established under section 4(a).
SEC. 4. OFFICE OF VETERANS IDENTITY PROTECTION CLAIMS.
(a) Office Established- There is established an independent office of the
executive branch to receive, process, and pay claims in accordance with
this Act. Such office shall be known as the Office of Veterans Identity
Protection Claims.
(b) Director- Not later than 30 days after the enactment of this Act, the
President shall appoint a director of the Office of Veterans Identity Protection
Claims. The Director shall, on behalf of the United States, investigate,
consider, ascertain, adjust, determine, grant, deny, or settle any claim
for money damages asserted under section 5(b).
(c) Funding- The Office--
(1) shall be funded from funds made available to the Director under this
Act;
(2) may reimburse other Federal agencies for claims processing support
and assistance;
(3) may appoint and fix the compensation of such temporary personnel as
may be necessary, without regard to the provisions of title 5, United
States Code, governing appointments in competitive service; and
(4) upon the request of the Director, may request that the head of any
Federal department or agency detail, on a reimbursable basis, any of the
personnel of that department or agency to the Office to assist it in carrying
out its duties under this Act.
SEC. 5. REIMBURSEMENT FOR INJURIES SUFFERED.
(a) Reimbursement- Each injured person shall be entitled to receive from
the United States--
(1) reimbursement for any injuries suffered by the injured person as a
result of the unauthorized use, disclosure, or dissemination of personal
identifying information that was included in the data described in section
3(2)(A); and
(2) damages described in subsection (d)(3), as determined by the Director.
(b) Submission of Claims- Not later than 2 years after the date on which
regulations are first promulgated under subsection (f), an injured person
may submit to the Director a written claim for one or more injuries suffered
by the injured person in accordance with such requirements as the Director
determines to be appropriate.
(c) Investigation of Claims-
(1) APPLICABILITY OF STATE LAW- Except as otherwise provided in this Act,
the laws of the State in which the injured person resides shall apply
to the calculation of damages under subsection (d)(3).
(2) EXTENT OF DAMAGES- Any payment under this Act--
(A) shall be limited to actual compensatory damages measured by injuries
suffered and interest before settlement or payment of a claim; and
(B) shall not include punitive damages.
(1) DETERMINATION AND PAYMENT OF AMOUNT-
(A) IN GENERAL- Not later than 180 days after the date on which a claim
is submitted under this Act, the Director shall determine and fix the
amount, if any, to be paid for the claim.
(B) PARAMETERS OF DETERMINATION- In determining and settling a claim
under this Act, the Director shall determine only--
(i) whether the claimant is an injured person;
(ii) whether the injury that is the subject of the claim resulted
from the unauthorized use, disclosure, or dissemination of personal
identifying information that was included in the data described in
section 3(2)(A);
(iii) the amount, if any, to be allowed and paid to the injured person
under this Act.
(C) OTHER PAYMENTS OR SETTLEMENTS- In determining the amount of, and
paying, a claim under this Act, to prevent recovery by a claimant in
excess of actual compensatory damages, the Director shall reduce the
amount to be paid for the claim by an amount that is equal to the total
of any payments or settlements of any nature that were paid, or will
be paid, to the injured person with respect to the claim.
(A) IN GENERAL- At the request of a claimant, the Director may make
one or more advance or partial payments before the final settlement
of a claim, including final settlement on any portion or aspect of a
claim that is determined to be severable.
(B) JUDICIAL DECISION- If a claimant receives a partial payment on a
claim under this Act, but further payment on the claim is subsequently
denied by the Director, the claimant may--
(i) seek judicial review under subsection (i); and
(ii) keep any partial payment that the claimant received, unless the
Director determines that the claimant--
(I) was not eligible to receive the reimbursement; or
(II) fraudulently procured the reimbursement.
(3) ALLOWABLE DAMAGES- A claim that is paid under this Act may include
otherwise uncompensated damages for loss of property, business loss, or
financial loss resulting from the unauthorized use, disclosure, or dissemination
of personal identifying information that was included in the data described
in section 3(2)(A).
(e) Acceptance of Award- The acceptance by a claimant of any payment under
this Act, except an advance or partial payment made under subsection (d)(2),
shall--
(1) be final and conclusive on the claimant, with respect to all claims
arising out of or relating to the same subject matter;
(2) constitute a complete release of all claims against the United States
(including any agency or employee of the United States) under chapter
171 of title 28, United States Code (commonly known as the `Federal Tort
Claims Act'), or any other Federal or State law, arising out of or relating
to the same subject matter; and
(3) shall include a certification by the claimant, made under penalty
of perjury and subject to the provisions of section 1001 of title 18,
United States Code, that such claim is true and correct.
(f) Regulations and Public Information-
(1) REGULATIONS- Notwithstanding any other provision of law, not later
than 45 days after the date of the enactment of this Act, the Director
shall promulgate and publish in the Federal Register interim final regulations
for the processing and payment of claims under this Act.
(A) IN GENERAL- At the time at which the Director promulgates regulations
under paragraph (1), the Director shall publish, in newspapers of general
circulation in the each of the several States and the District of Columbia,
a clear, concise, and easily understandable explanation, in English
and Spanish, of--
(i) the rights conferred under this Act; and
(ii) the procedural and other requirements of the regulations promulgated
under paragraph (1).
(B) DISSEMINATION THROUGH OTHER MEDIA- The Director shall disseminate
the explanation published under subparagraph (A) through brochures,
pamphlets, radio, television, and other media that the Director determines
are likely to reach prospective claimants.
(g) Consultation- In administering this Act, the Director shall consult
with the Attorney General, the Secretary of Veterans Affairs, the Secretary
of the Defense, the Secretary of Commerce, other Federal agencies, and State
and local authorities, as determined to be necessary by the Director to--
(1) ensure the efficient administration of the claims process; and
(2) provide for local concerns.
(1) IN GENERAL- An injured person may elect to seek reimbursement from
the United States for one or more injuries resulting from the unauthorized
use, disclosure, or dissemination of personal identifying information
that was included in the data described in section 3(2)(A) by--
(A) submitting a claim under this Act;
(B) filing a claim or bringing a civil action under chapter 171 of title
28, United States Code; or
(C) bringing an authorized civil action under any other provision of
law.
(2) EFFECT OF ELECTION- An election by an injured person to seek reimbursement
in any manner described in paragraph (1) shall be final and conclusive
on the claimant with respect to all injuries resulting from the unauthorized
use, disclosure, or dissemination of personal identifying information
that was included in the data described in section 3(2)(A) that are suffered
by the claimant.
(A) IN GENERAL- Not later than 45 days after the date of the enactment
of this Act, the Director shall establish by regulation procedures under
which a dispute regarding a claim submitted under this Act may be settled
by arbitration.
(B) ARBITRATION AS REMEDY- On establishment of arbitration procedures
under subparagraph (A), an injured person that submits a disputed claim
under this Act may elect to settle the claim through arbitration.
(C) BINDING EFFECT- An election by an injured person to settle a claim
through arbitration under this paragraph shall--
(ii) preclude any exercise by the injured person of the right to judicial
review of a claim described in subsection (i).
(4) NO EFFECT ON ENTITLEMENTS- Nothing in this Act affects any right of
a claimant to file a claim for benefits under any Federal entitlement
program.
(1) IN GENERAL- Any claimant aggrieved by a final decision of the Director
under this Act may, not later than 60 days after the date on which the
decision is issued, bring a civil action in the an appropriate United
States District Court, to modify or set aside the decision, in whole or
in part.
(2) RECORD- The court shall hear a civil action under paragraph (1) on
the record made before the Director.
(3) STANDARD- The decision of the Director incorporating the findings
of the Director shall be upheld if the decision is supported by substantial
evidence on the record considered as a whole.
(j) Attorney's and Agent's Fees-
(1) IN GENERAL- No attorney or agent, acting alone or in combination with
any other attorney or agent, shall charge, demand, receive, or collect,
for services rendered in connection with a claim submitted under this
Act, fees in excess of 10 percent of the amount of any payment on the
claim.
(2) VIOLATION- An attorney or agent who violates paragraph (1) shall be
fined not more than $10,000.
(k) Applicability of Debt Collection Requirements- Section 3716 of title
31, United States Code, shall not apply to any payment under this Act.
SEC. 6. REPORT; AUDIT.
(a) Not later than 180 days after the date of promulgation of regulations
under section 5(f)(1), and semiannually thereafter, the Director shall submit
to the Committees on Veterans Affairs, Energy and Commerce, and Judiciary
of the House of Representatives, and the Committees on Veterans Affairs,
Commerce, Science and Transportation, and Judiciary of the Senate, a report
that describes the claims submitted under this Act during the six months
preceding the date of submission of the report, including, for each claim--
(2) a brief description of the nature of the claim; and
(3) the status or disposition of the claim, including the amount of any
payment under this Act.
(b) The Comptroller General shall conduct an annual audit on the payment
of all claims made under this Act, and shall report to the committees described
in subsection (a) on the results of this audit beginning not later than
the expiration of the 1-year period beginning on the date of the enactment
of this Act.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Director such sums as are
necessary to carry out this Act, to remain available until expended.
END
