What This Bill Does
This bill requires the Secretary of Veterans Affairs to repay the estates of deceased veterans or beneficiaries when money the Veterans Affairs paid them was misused by a fiduciary (a person legally trusted to manage someone else's money). The bill aims to restore benefits to veterans who were defrauded by people managing their money.
Who It Affects
Estates of deceased veterans or beneficiaries whose benefits were misused by fiduciaries. The Secretary of Veterans Affairs. Successor fiduciaries serving beneficiaries. Courts determining who inherits benefits.
Key Provisions
* When a beneficiary dies before receiving a payment, the Secretary of Veterans Affairs must pay the benefits to the beneficiary's estate first, then to a successor fiduciary if needed, then to whoever a court says should inherit the money (Sec. 2).
* The Secretary cannot pay benefits to any fiduciary (person managing money) who misused the beneficiary's benefits (Sec. 2).
What Changes
If this becomes law, the Veterans Affairs system will have a new process for handling payments when a beneficiary dies. The agency will prioritize paying the estate of the deceased beneficiary. The agency will be blocked from paying fiduciaries who are known to have misused benefits.
Important Definitions
Fiduciary: A person or entity legally trusted to manage money or property for someone else.
II
118TH CONGRESS
1ST SESSION
S. 263
To amend title 38, United States Code, to require the Secretary of Veterans
Affairs to repay the estates of deceased beneficiaries for certain benefits
paid by the Secretary and misused by fiduciaries of such beneficiaries,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 2, 2023
Mr. MANCHIN (for himself and Mr. TUBERVILLE) introduced the following
bill; which was read twice and referred to the Committee on Veterans’ Affairs
A BILL
To amend title 38, United States Code, to require the Sec-
retary of Veterans Affairs to repay the estates of de-
ceased beneficiaries for certain benefits paid by the Sec-
retary and misused by fiduciaries of such beneficiaries,
and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Restoring Benefits to
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Defrauded Veterans Act of 2023’’.
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•S 263 IS
SEC. 2. REPAYMENT BY THE SECRETARY OF VETERANS AF-
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FAIRS OF ESTATES OF DECEASED BENE-
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FICIARIES FOR CERTAIN BENEFITS PAID BY
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THE SECRETARY AND MISUSED BY FIDU-
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CIARIES.
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Section 6107 of title 38, United States Code, is
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amended—
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(1) by redesignating subsections (c) and (d) as
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subsections (d) and (e), respectively;
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(2) by inserting after subsection (b) the fol-
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lowing new subsection (c):
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‘‘(c) REISSUANCE OF AMOUNTS IN THE CASE OF A
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DECEASED BENEFICIARY.—(1) If a beneficiary described
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in subsection (a) predeceases a payment under subsection
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(a) or (b), the Secretary shall pay such benefits, subject
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to paragraph (2), to an individual or entity in the fol-
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lowing order:
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‘‘(A) The estate of the beneficiary.
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‘‘(B) A successor fiduciary serving the bene-
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ficiary when the beneficiary died.
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‘‘(C) The next inheritor determined by a court
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of competent jurisdiction.
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‘‘(2) The Secretary may not make a payment under
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this subsection to a fiduciary who misused benefits of the
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beneficiary.’’; and
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•S 263 IS
(3) in subsection (e), as redesignated, by strik-
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ing ‘‘subsection (a) or (b)’’ and inserting ‘‘this sec-
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tion’’.
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Æ
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