§ 6107. Reissuance of benefits

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 2004

   Veterans Benefits Improvement Act of 2004

   Pub. L. 108–454 title V § 503(a)(1) · 118 Stat. 3598

   Enacted · 38 U.S.C. § 6107

   Added Pub. L. 108–454, title V, § 503(a)(1), Dec. 10, 2004, 118 Stat. 3619

   Source evidence

   Code source credit
   Added Pub. L. 108–454, title V, § 503(a)(1), Dec. 10, 2004, 118 Stat. 3619

   Enacted provision · exact public law section
   (1) Chapter 61 is amended by adding at the end the following new sections: “§ 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) 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. “(c) Regulations.— The Secretary may prescribe by regulation the meaning of the term ‘use and benefit’ for purposes of this section. “§ 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 review a fiduciary’s accounting within 60 days of the date on which that accounting is scheduled for review. “(B) A case in which the Secretary was notified of allegations of misuse, but failed to act within 60 days of the date of such notification 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) Applicability. 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. “(3) In any other case in which the Secretary obtains recoupment from a fiduciary who has misused benefits, the Secretary shall promptly remit payment of the recouped amounts to the beneficiary or the beneficiary’s successor fiduciary as the case may be. “(c) Limitation on Total Amount Paid.— The total of the amounts paid to a beneficiary (or a beneficiary’s successor fiduciary) under this section may not exceed the total benefit amount misused by the fiduciary with respect to that beneficiary. “(d) 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.” .

2. 2021

   Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020

   Pub. L. 116–315 § 7005(a)(1) · 134 Stat. 4932

   Substituted · 38 U.S.C. § 6107(b)(1)

   Pub. L. 116–315, § 7005(a)(1), substituted “In any case not covered by subsection (a) in which a fiduciary” for “In any case in which a fiduciary described in paragraph (2)”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 116–315, § 7005(a)(1), substituted “In any case not covered by subsection (a) in which a fiduciary” for “In any case in which a fiduciary described in paragraph (2)”.

   Enacted provision · exact public law section
   (1) in paragraph (1), by striking “In any case in which a fiduciary described in paragraph (2)” and inserting “In any case not covered by subsection (a) in which a fiduciary”;

   Effective date note
   Pub. L. 116–315, title VII, § 7005(b), Jan. 5, 2021, 134 Stat. 5059, provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to any determination by the Secretary of Veterans Affairs made on or after the date of the enactment of this Act [Jan. 5, 2021] regarding the misuse of benefits by a fiduciary.”

3. 2021

   Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020

   Pub. L. 116–315 § 7005(a)(2) · 134 Stat. 4932

   1. Redesignated · 38 U.S.C. § 6107(b)(2); 38 U.S.C. § 6107(b)(3)

      Pub. L. 116–315, § 7005(a)(2), (3), redesignated par. (3) as (2)

   2. Struck · 38 U.S.C. § 6107(b)(2); 38 U.S.C. § 6107(b)(3)

      Pub. L. 116–315, § 7005(a)(2), (3), struck out former par. (2) which read as follows: “Paragraph (1) applies to a fiduciary that—

   Source evidence

   Code amendment note
   Subsec. (b)(2), (3). Pub. L. 116–315, § 7005(a)(2), (3), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “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.”

   Enacted provision · exact public law section
   (2) by striking paragraph (2); and

   Effective date note
   Pub. L. 116–315, title VII, § 7005(b), Jan. 5, 2021, 134 Stat. 5059, provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to any determination by the Secretary of Veterans Affairs made on or after the date of the enactment of this Act [Jan. 5, 2021] regarding the misuse of benefits by a fiduciary.”

4. 2024

   Pub. L. 118–114 § 2(1) · 138 Stat. 1605

   1. Added · 38 U.S.C. § 6107(c); 38 U.S.C. § 6107(d)

      Pub. L. 118–114, § 2(1), (2), added subsec. (c)

   2. Redesignated · 38 U.S.C. § 6107(c); 38 U.S.C. § 6107(d)

      Pub. L. 118–114, § 2(1), (2), redesignated former subsec. (c) as (d). Former subsec. (d) redesignated (e)

   Unresolved: Pub. L. 118–114 was not found in the local Statutes at Large index.

   Source evidence

   Code amendment note
   Subsecs. (c), (d). Pub. L. 118–114, § 2(1), (2), added subsec. (c) and redesignated former subsec. (c) as (d). Former subsec. (d) redesignated (e).

5. 2024

   Pub. L. 118–114 § 2(1) · 138 Stat. 1605

   1. Redesignated · 38 U.S.C. § 6107(e)

      Pub. L. 118–114, § 2(1), (3), redesignated subsec. (d) as (e)

   2. Substituted · 38 U.S.C. § 6107(e)

      Pub. L. 118–114, § 2(1), (3), substituted “this section” for “subsection (a) or (b)”

   Unresolved: Pub. L. 118–114 was not found in the local Statutes at Large index.

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 118–114, § 2(1), (3), redesignated subsec. (d) as (e) and substituted “this section” for “subsection (a) or (b)”.

6. 2025

   Pub. L. 119–56 § 2 · 139 Stat. 709

   Amended · 38 U.S.C. § 6107

   Pub. L. 119–56 amended section generally. Prior to amendment, section related to reissuance of benefits after misuse of benefits by a fiduciary in cases of negligent failure of the Secretary to investigate or monitor the fiduciary or in other cases

   Unresolved: Pub. L. 119–56 was not found in the local Statutes at Large index.

   Source evidence

   Code amendment note
   Pub. L. 119–56 amended section generally. Prior to amendment, section related to reissuance of benefits after misuse of benefits by a fiduciary in cases of negligent failure of the Secretary to investigate or monitor the fiduciary or in other cases.

4 of 9 references resolved to an enrolled provision · 5 unresolved