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S 1188 IS

To repeal the two-year limitation on the payment of accrued benefits that are due and unpaid by the Secretary of Veterans Affairs upon the death of a veteran or other beneficiary under laws administered by the Secretary, to allow for substitution of parties in the case of a claim for benefits provided by the Secretary when the applicant for such benefits dies while the claim is pending, and for other purposes.

June 5, 2003

Mrs. MURRAY introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs

To repeal the two-year limitation on the payment of accrued benefits that are due and unpaid by the Secretary of Veterans Affairs upon the death of a veteran or other beneficiary under laws administered by the Secretary, to allow for substitution of parties in the case of a claim for benefits provided by the Secretary when the applicant for such benefits dies while the claim is pending, 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' Survivor Benefits Act of 2003'.

SEC. 2. REPEAL OF TWO-YEAR LIMITATION ON PAYMENT OF ACCRUED BENEFITS AT DEATH.

Subsection (a) of section 5121 of title 38, United States Code, is amended--

(1) in the matter preceding paragraph (1), by striking `for a period not to exceed two years';

(2) in paragraph (4), by striking `and' at the end;

(3) by redesignating paragraph (5) as paragraph (6); and

(4) by inserting after paragraph (4) the following new paragraph (5):

`(5) Upon the death of a child claiming benefits under chapter 18 of this title, to the surviving parents; and'.

SEC. 3. CONTINUATION OF CLAIM AND SUBSTITUTION OF PARTIES UPON DEATH OF APPLICANT FOR BENEFITS.

(a) IN GENERAL- Chapter 51 of title 38, United States Code, is amended by adding at the end the following new section:

`Sec. 5127. Deaths of applicants for benefits: continuation of claims and substitution of parties

`(a) In the case of a claim for compensation, dependency and indemnity compensation, or pension that was submitted to the Secretary by a claimant who dies before a decision on that claim becomes final in accordance with section 7291 of this title in which benefits are not payable based on existing ratings or decisions or those based on evidence in the file at the date of death under section 5121 of this title, the claim shall not be extinguished if, within the time period prescribed in subsection (c)(2), an eligible person submits an application to the Secretary, or submits a motion to a court with jurisdiction over the claim, to be substituted as the claimant in order to continue prosecution of the claim. The Secretary or the court, as the case may be, shall approve any such application submitted by an eligible person.

`(b)(1) For purposes of this section and section 7270 of this title, the term `eligible person' means any of the following individuals:

`(A) The surviving spouse.

`(B) The custodian of a surviving child (including a surviving child described by section 101(4)(A)(ii) of this title who is incapable of continuing prosecution of a claim) or, in the case of a surviving child described by section 101(4)(A)(iii) of this title, the surviving child.

`(C) A dependent parent.

`(D) In the case of a child claiming benefits under chapter 18 of this title, a surviving parent.

`(2) In a case where more than one individual referred to in subparagraph (A) through (C) of paragraph (1) submits an application or motion under subsection (a) to be substituted as a claimant, the eligible person shall be determined in the order listed in such subparagraphs. In the case of individuals submitting an application or motion under subsection (a) who are specified in the same subparagraph of paragraph (1), the eligible person shall be the first in time to submit such application or motion.

`(c)(1) Upon being notified of the death of a claimant, the Secretary shall send a notice to the eligible person shown in the record, or otherwise to the decedent's last known address, informing that the claim will be dismissed unless an application for substitution as the claimant is received by the Secretary within the time prescribed in paragraph (2).

`(2) An application under this section for substitution as the claimant on a claim must be filed not later than the later of--

`(A) the end of the 1-year period beginning on the date of the claimant's death;

`(B) the end of the 6-month period beginning on the date of the notification under paragraph (1); or

`(C) the end of the 3-month period beginning on the date of the notification of an adverse decision under section 5121 of this title.

`(d) A person named as a substitute claimant under subsection (a) shall be accorded all the rights and responsibilities of the original claimant.

`(e) If benefits are payable as a result of a decision on a claim by a substituted claimant named under this section, such benefits shall be paid as follows:

`(1) If the deceased claimant was claiming benefits as a veteran, to the living person first listed below:

`(A) The veteran's spouse.

`(B) The veteran's children (in equal shares).

`(C) The veteran's dependent parents (in equal shares).

`(2) If the deceased claimant was claiming benefits as the surviving spouse of a veteran, to the surviving children of the deceased veteran (in equal shares).

`(3) If the deceased claimant was claiming benefits under chapter 18 of this title as the child of a veteran, to the surviving parents of the child (in equal shares).

`(f) Upon the appointment of a substitute claimant, the Secretary shall notify the person substituted as the claimant as to the evidence or information necessary to substantiate the pending claim. If such information or evidence is not received within one year from the date of such notification, no benefits may be paid on the claim.

`(g) For purposes of section 5112(b) of this title, the term `payee' as used in such section shall be deemed to include a deceased claimant for whom a substitute claimant is appointed 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:

`5127. Deaths of applicants for benefits: continuation of claims and substitution of parties.'.

SEC. 4. SUBSTITUTION OF SURVIVOR IN CASES PENDING BEFORE A COURT.

(a) IN GENERAL- Subchapter II of chapter 72 of title 38, United States Code, is amended by adding at the end the following new section:

`Sec. 7270. Cases pending on death of claimant: substitution of parties

`(a) If a claimant dies before filing an appeal under section 7266 of this title, an eligible person may file an appeal as a substituted claimant for the decedent within the time period specified under section 7266 of this title. If an appellant or respondent dies while a claim is pending before a court and before a final decision is rendered under section 7291 of this title, an eligible person may move the court for substitution of claimant in the pending action. Any such motion filed with the United States Court of Appeals for Veterans Claims or to the United States Court of Appeals for the Federal Circuit must be filed within the time period prescribed by sections 7266 and 7292 of this title, respectively, or within one year of the claimant's death, whichever is earlier.

`(b) In any case in which a final decision under section 7291 of this title has not been made, an eligible person may move a court to be substituted is the appellant (or respondent as the case may be) for an appellant or respondent who dies while an appeal is pending. The court shall, upon filing of a timely motion, appoint an eligible person to substitute as the claimant to continue prosecution or defense of that claim.

`(c) Nothing in this section shall require or authorize substitution for a deceased claimant if a final decision under section 7291 of this title has been entered before the filing of a motion for substitution.

`(d) In this section, the term `eligible person' has the meaning given that term in section 5127(b) of this title.'.

(b) CLERICAL AMENDMENT- The table of sections at the beginning of such subchapter is amended by adding at the end the following new item:

`7270. Cases pending on death of claimant: substitution of parties.'.

SEC. 5. EFFECTIVE DATE.

The amendments made by this Act shall apply to deaths occurring on or after the date of the enactment of this Act.

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