To ensure the fair treatment of a member of the Armed Forces who is discharged from the Armed Forces, at the request of the member, pursuant to the Department of Defense policy permitting the early discharge of a member who is the only surviving child in a family in which the father or mother, or one or more siblings, served in the Armed Forces and, because of hazards incident to such service, was killed, died as a result of wounds, accident, or disease, is in a captured or missing in action status, or is permanently disabled, to amend the Internal Revenue Code of 1986 to repeal the dollar limitation on contributions to funeral trusts, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.CommentsClose CommentsPermalink

(a) Short Title- This Act may be cited as the ‘Hubbard Act’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink





Sec. 2. Continued payment of bonuses and similar benefits for members of the Armed Forces who receive sole survivorship discharge.CommentsClose CommentsPermalink





Sec. 3. Availability of separation pay for members of the Armed Forces with less than six years of active service who receive sole survivorship discharge.CommentsClose CommentsPermalink





Sec. 4. Transitional health care for members of the Armed Forces who receive sole survivorship discharge.CommentsClose CommentsPermalink





Sec. 5. Transitional commissary and exchange benefits for members of the Armed Forces who receive sole survivorship discharge.CommentsClose CommentsPermalink





Sec. 6. Veterans benefits for members of the Armed Forces who receive sole survivorship discharge.CommentsClose CommentsPermalink





Sec. 7. Unemployment compensation for members of the Armed Forces who receive sole survivorship discharge.CommentsClose CommentsPermalink





Sec. 8. Preference-eligible status for members of the Armed Forces who receive sole survivorship discharge.CommentsClose CommentsPermalink





Sec. 9. Repeal of dollar limitation on contributions to funeral trusts.CommentsClose CommentsPermalink





Sec. 10. Effective dates.CommentsClose CommentsPermalink

(a) Effect of Sole Survivorship Discharge- Section 303a(e) of title 37, United States Code, is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by striking ‘A member’ and inserting ‘(A) Except as provided in paragraph (2), a member’;CommentsClose CommentsPermalink





(2) by redesignating paragraph (2) as subparagraph (B) of paragraph (1); andCommentsClose CommentsPermalink





(3) by inserting after paragraph (1), as so amended, the following new paragraph (2):CommentsClose CommentsPermalink





‘(2)(A) If a member of the uniformed services receives a sole survivorship discharge, the Secretary concerned--CommentsClose CommentsPermalink





‘(i) shall not require repayment by the member of the unearned portion of any bonus, incentive pay, or similar benefit previously paid to the member; andCommentsClose CommentsPermalink





‘(ii) may grant an exception to the requirement to terminate the payment of any unpaid amounts of a bonus, incentive pay, or similar benefit if the Secretary concerned determines that termination of the payment of the unpaid amounts would be contrary to a personnel policy or management objective, would be against equity and good conscience, or would be contrary to the best interests of the United States.CommentsClose CommentsPermalink





‘(B) In this paragraph, the term ‘sole survivorship discharge’ means the separation of a member from the Armed Forces, at the request of the member, pursuant to the Department of Defense policy permitting the early separation of a member who is the only surviving child in a family in which--CommentsClose CommentsPermalink





‘(i) the father or mother or one or more siblings--CommentsClose CommentsPermalink





‘(I) served in the Armed Forces; andCommentsClose CommentsPermalink





‘(II) was killed, died as a result of wounds, accident, or disease, is in a captured or missing in action status, or is permanently 100 percent disabled or hospitalized on a continuing basis (and is not employed gainfully because of the disability or hospitalization); andCommentsClose CommentsPermalink





‘(ii) the death, status, or disability did not result from the intentional misconduct or willful neglect of the parent or sibling and was not incurred during a period of unauthorized absence.’.CommentsClose CommentsPermalink





(b) Sense of Congress- In light of the extraordinary discretion granted to the Secretary of a military department by statute and policy to continue to pay the unpaid amounts of a bonus, incentive pay, or similar benefit otherwise due to a member of the Armed Forces under the jurisdiction of the Secretary who receives a sole survivorship discharge, it is the sense of Congress that the Secretaries of the military departments should aggressively use such discretion to the benefit of members receiving a sole survivorship discharge.CommentsClose CommentsPermalink

Section 1174 of title 10, United States Code, is amended--CommentsClose CommentsPermalink





(1) by redesignating subsection (i) as subsection (j); andCommentsClose CommentsPermalink





(2) by inserting after subsection (h) the following new subsection:CommentsClose CommentsPermalink





‘(i) Special Rule for Members Receiving Sole Survivorship Discharge- (1) A member of the Armed Forces who receives a sole survivorship discharge shall be entitled to separation pay under this section even though the member has completed less than six years of active service immediately before that discharge. Subsection (e) shall not apply to a member who receives a sole survivorship discharge.CommentsClose CommentsPermalink





‘(2) The amount of the separation pay to be paid to a member pursuant to this subsection shall be based on the years of active service actually completed by the member before the member’s sole survivorship discharge.CommentsClose CommentsPermalink





‘(3) In this subsection, the term ‘sole survivorship discharge’ means the separation of a member from the Armed Forces, at the request of the member, pursuant to the Department of Defense policy permitting the early separation of a member who is the only surviving child in a family in which--CommentsClose CommentsPermalink





‘(A) the father or mother or one or more siblings--CommentsClose CommentsPermalink





‘(i) served in the Armed Forces; andCommentsClose CommentsPermalink





‘(ii) was killed, died as a result of wounds, accident, or disease, is in a captured or missing in action status, or is permanently 100 percent disabled or hospitalized on a continuing basis (and is not employed gainfully because of the disability or hospitalization); andCommentsClose CommentsPermalink





‘(B) the death, status, or disability did not result from the intentional misconduct or willful neglect of the parent or sibling and was not incurred during a period of unauthorized absence.’.CommentsClose CommentsPermalink

Section 1145(a)(2) of title 10, United States Code, is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(E) A member who receives a sole survivorship discharge (as defined in section 1174(i) of this title).’.CommentsClose CommentsPermalink

Section 1146 of title 10, United States Code, is amended--CommentsClose CommentsPermalink





(1) by striking ‘The Secretary of Defense’ and inserting the following:CommentsClose CommentsPermalink





‘(a) Benefits for Members Involuntarily Separated- The Secretary of Defense’; andCommentsClose CommentsPermalink





(2) by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(b) Benefits for Members Receiving Sole Survivorship Discharge- A member of the Armed Forces who receives a sole survivorship discharge (as defined in section 1174(i) of this title) is entitled to continue to use commissary and exchange stores and morale, welfare, and recreational facilities in the same manner as a member on active duty during the two-year period beginning on the later of the following dates:CommentsClose CommentsPermalink





‘(1) The date of the separation of the member.CommentsClose CommentsPermalink





‘(2) The date on which the member is first notified of the members entitlement to benefits under this section.’.CommentsClose CommentsPermalink

(a) Housing Loan Benefits- Section 3702(a)(2) of title 38, United States Code, is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(F) Each veteran who was discharged or released from a period of active duty of 90 days or more by reason of a sole survivorship discharge (as that term is defined in section 1174(i) of title 10).’.CommentsClose CommentsPermalink





(b) Employment and Training- Section 4211(4) of such title is amended--CommentsClose CommentsPermalink





(1) in subparagraph (B), by striking ‘or’ at the end;CommentsClose CommentsPermalink





(2) in subparagraph (C), by striking the period at the end and inserting ‘; or’; andCommentsClose CommentsPermalink





(3) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(D) was discharged or released from active duty by reason of a sole survivorship discharge (as that term is defined in section 1174(i) of title 10).’.CommentsClose CommentsPermalink





(c) Existing Basic Educational Assistance-CommentsClose CommentsPermalink





(1) SERVICE ON ACTIVE DUTY- Section 3011(a)(1) of such title is amended--CommentsClose CommentsPermalink





(A) in subparagraph (A)(ii), by inserting after ‘service-connected disability,’ the following: ‘by reason of a sole survivorship discharge (as that term is defined in section 1174(i) of title 10),’;CommentsClose CommentsPermalink





(B) in subparagraph (B)(ii), by inserting after ‘service-connected disability,’ the following: ‘by reason of a sole survivorship discharge (as that term is defined in section 1174(i) of title 10),’; andCommentsClose CommentsPermalink





(C) in subparagraph (C)(iii)(II), by inserting after ‘service-connected disability,’ the following: ‘by reason of a sole survivorship discharge (as that term is defined in section 1174(i) of title 10),’.CommentsClose CommentsPermalink





(2) SERVICE IN THE SELECTED RESERVE- Section 3012(b)(1) of such title is amended--CommentsClose CommentsPermalink





(A) in subparagraph (A)--CommentsClose CommentsPermalink





(i) by striking ‘, or (vi)’ and inserting ‘, (vi)’; andCommentsClose CommentsPermalink





(ii) by inserting before the period at the end the following: ‘, or (vii) by reason of a sole survivorship discharge (as that term is defined in section 1174(i) of title 10)’; andCommentsClose CommentsPermalink





(B) in subparagraph (B)--CommentsClose CommentsPermalink





(i) in clause (i), by inserting after ‘service-connected disability,’ the following: ‘by reason of a sole survivorship discharge (as that term is defined in section 1174(i) of title 10),’; andCommentsClose CommentsPermalink





(ii) in clause (ii)--CommentsClose CommentsPermalink





(I) by striking ‘, or (VI)’ and inserting ‘, (VI)’; andCommentsClose CommentsPermalink





(II) by inserting before the period at the end the following: ‘, or (VII) by reason of a sole survivorship discharge (as that term is defined in section 1174(i) of title 10)’.CommentsClose CommentsPermalink

Section 8521(a)(1)(B)(ii)(III) of title 5, United States Code, is amended by striking ‘hardship,’ and inserting ‘hardship (including pursuant to a sole survivorship discharge, as that term is defined in section 1174(i) of title 10),’.CommentsClose CommentsPermalink

Section 2108(3) of title 5, United States Code, is amended--CommentsClose CommentsPermalink





(1) in subparagraph (F), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(2) in subparagraph (G), by inserting ‘and’ at the end; andCommentsClose CommentsPermalink





(3) by inserting after subparagraph (G) the following:CommentsClose CommentsPermalink





‘(H) a veteran who was discharged or released from a period of active duty by reason of a sole survivorship discharge (as that term is defined in section 1174(i) of title 10);’.CommentsClose CommentsPermalink

(a) In General- Subsection (c) of section 685 of the Internal Revenue Code of 1986 (relating to treatment of funeral trusts) is repealed.CommentsClose CommentsPermalink





(b) Conforming Amendment- Subsections (d), (e), and (f) of such section are redesignated as subsections (c), (d), and (e), respectively.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink





SEC. 10. EFFECTIVE DATES.CommentsClose CommentsPermalink





(a) Retroactive Effective Date- Except as provided in subsection (b) and section 9, this Act and the amendments made by this Act shall apply with respect to any sole survivorship discharge granted after September 11, 2001.CommentsClose CommentsPermalink





(b) Date of Enactment Effective Date for Certain Amendments- The amendments made by sections 4, 7, and 8 shall apply with respect to any sole survivorship discharge granted after the date of the enactment of this Act.CommentsClose CommentsPermalink





(c) Sole Survivorship Discharge Defined- In this section, the term ‘sole survivorship discharge’ means the separation of a member from the Armed Forces, at the request of the member, pursuant to the Department of Defense policy permitting the early separation of a member who is the only surviving child in a family in which--CommentsClose CommentsPermalink





(1) the father or mother or one or more siblings--CommentsClose CommentsPermalink





(A) served in the Armed Forces; andCommentsClose CommentsPermalink





(B) was killed, died as a result of wounds, accident, or disease, is in a captured or missing in action status, or is permanently 100 percent disabled or hospitalized on a continuing basis (and is not employed gainfully because of the disability or hospitalization); andCommentsClose CommentsPermalink





(2) the death, status, or disability did not result from the intentional misconduct or willful neglect of the parent or sibling and was not incurred during a period of unauthorized absence.CommentsClose CommentsPermalink

PassedSpeaker of the House of Representatives July 29, 2008.Attest:LORRAINE C. MILLER,Clerk.CommentsClose CommentsPermalink

President of the Senate.CommentsClose CommentsPermalink