On 28 June 2005, the House passed the Military Personnel Financial Services Protection Act (H.R. 458) by a vote of 405-2. The bill seeks to protect service members from the sale of questionable financial products, curb abusive sales practices on military installations, and ensure regulatory oversight of financial services sales on bases. The legislation also authorizes establishment of a registry of banned agents to be maintained by the Secretary of Defense with information made available to the appropriate federal and state regulators.

Sponsored by Rep. Geoff Davis (Ky.) H.R. 458 is similar to legislation passed by the 108th Congress last fall after a series of New York Times articles and editorials criticized the practices of certain firms that target military personnel for the sale of insurance and investment products. Companion legislation (S. 418), sponsored by Sen. Michael Enzi (Wyo.) has been introduced in the Senate and currently has seven co-sponsors.

In addition, related legislation sponsored by Rep. Sam Graves (Mo.) (H.R. 97) would limit interest rates on loans by so-called pay day lenders. These firms charge exorbitantly high interest rates and target military personnel and their dependents. Visit the Action Center at www.fra.org to voice your views on these issues.

VA Health Care Budget Shortfall Update

As reported 1 July 2005, the Department of Veterans Affairs (VA) acknowledged last week that it is operating with a $1 billion health care budget shortfall for the current year. Prior to the Independence Day recess, lawmakers in the House passed a bill (H.R. 3130), sponsored by Rep James Walsh (NY), Chairman of the Military Quality of Life and Veterans Affairs Appropriations Subcommittee, that would provide almost $1 billion in supplemental funds to cover the remainder of FY05. And in the Senate, Senator Larry Craig (Idaho), Chairman of the Veterans Affairs Committee, and Senator Patty Murray (Wash.), a member of the Military Construction and Veterans Affairs Appropriations Subcommittee, led to the Senate voting to include $1.5 billion as part of the Interior Appropriations bill to cover the FY05 and FY06 shortfall. Both bills passed without opposition.

The House and Senate are on recess this week and are expected to take up the FY06 VA Health Care funding shortage after members return on 11 July 05.

Update on Concurrent Receipt Legislation

Several bills have been introduced in the 109th Congress that would enhance benefits for disabled military retirees. H.R. 1366, the Combat-Related Special Compensation Act of 2005, introduced by Rep. Michael Bilirakus (Fla.) has 18 co-sponsors and would authorize monthly combat-related special compensation pay to any military retiree who is entitled to retired pay and has a combat-related disability, including Chapter 61 retirees. (Currently, a retiree must meet those requirements and also have completed at least 20 years of retirement-creditable military service.) The bill would also provide a special compensation rule with respect to retirees with less than 20 years of service.

H.R. 994, introduced by Rep. Jerry Waller (Ill.), has 212 co-sponsors and would authorize the payment of Combat-Related Special Compensation to service members retired for disability with less than 20 years of active military service who were awarded the Purple Heart.

Both bills have been referred to the Subcommittee on Military Personnel. Shipmates are encouraged to visit the Legislative Center of the FRA website and urge their representative to co-sponsor these two very important bills.

S. 558, the Retired Pay Restoration Act of 2005, introduced by Senator Harry Reid, (Nev.), would permit certain retired members of the Armed Forces who have a service-connected disability to receive both disability compensation from the Department of Veterans Affairs and either retired pay by reason of their years of military service or Combat-Related Special Compensation. The bill, which has 28 co-sponsors, also seeks to eliminate the concurrent receipt phase-in period under current law. Allowing military retirees to collect full concurrent receipt of military retirement pay and VA disability compensation remains a top legislative priority.