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Veteran Identity Theft Protection Legislation Introduced
Congressman John T. Salazar (D-3-CO) has introduced H.R. 5588, The Comprehensive Veterans' Data Protection
and Identity Theft Prevention Act of 2006, in the House of Representatives. Senator Daniel K. Akaka (D-HI) has introduced the companion bill
in the Senate, S. 3506. These legislative initiatives are in response to the recent possible compromise of personal and sensitive data at
the Veterans Administration (VA). Those potentially affected include 26.5 million veterans as well as 1.1 million active duty, reserve
and guard service members.
This legislation contains a number of provisions that should serve to help protect those affected. The
bill provides for free credit monitoring for one year and free credit reports annually for two years upon request. The bill also
requires the VA to provide free credit fraud alerts to anyone affected for one year. Also, upon request, the VA will arrange for a
free security freeze for one year. A security freeze can help prevent identity theft by limiting the ability of creditors to access
credit reports. The bill requires the VA to prescribe policies and procedures to regulate its use of sensitive personal information
within 90 days of enactment. To facilitate access to these services once the bill is enacted into law, the VA is required to create
an Ombudsman for Data Security.
It is estimated that the implantation of this legislation will cost $160.5 million. On June 27th, VA
Secretary James Nicholson testified before the House Appropriations Subcommittee for Military Quality of Life and Veterans Affairs
and stated that the Bush Administration will seek $131.5 million in supplemental appropriations to fund the provisions of this
legislation. The remaining $29 million will come from VA personnel savings, the result of postponed hirings.
The Air Force Association endorses this legislation. In a letter to Congressman Salazar, AFA Executive
Director Donald Peterson said, in part, “While it is regrettable such legislation is necessary, we believe the protections provided
by the legislation to those affected by the compromised VA records is appropriate and cost effective.”
F-22 Multi-Year Progresses Forward
The Senate recently adopted, by a vote of 70-28, an amendment by Saxby Chambliss, R-Ga., that would
authorize the Pentagon to procure 60 F-22A Raptors over three years instead of through the annual authorization process.
TRICARE Update
The Senate recently blocked the proposed increase in Tricare retail pharmacy co-payments and also took
steps to freeze current retail prices.
The House has also been debating this issue and is considering a plan to offer free mail-order drugs,
including brand name products, but would increase retail pharmacy co-payments as a funding offset. The Congressional Budget Office
estimates that the Department of Defense will save $1.5 billion between 2007 and 2016 by moving toward the mail-order pharmacy option.
Healthcare expenses are projected to encompass 12 percent of the Pentagon’s budget by 2015 if no changes are made.
C-17 Sees Small Order Increase
The House Appropriations Committee granted $798 million to Boeing for the production of three additional C-17 transport planes
past the 180 aircraft already ordered. While this is an important step in keeping the production line open, the Air Force did not request the aircraft in its
future years’ defense plan.
Update on VA Data Theft
It is now estimated that as many as 1.1 million active duty individuals, 430,000 National Guard
personnel, and 645,000 reservists may be among the 26.5 million veterans and military personnel whose information was stolen May 3.
Members of Congress have expressed extreme concern about the incident, especially that it took thirteen days to notify the Secretary
of Veterans Affairs of the theft. The employee responsible for the data loss has been fired and the delay is being investigated.
Fortunately, there is no evidence that the information has been used illegally.
The VA is now investigating options to better secure their information files.
Individuals may call the VA hotline for more information: 1-800-FED-INFO. Affected military personnel
will be notified in their pay notices by the Department of Defense.
Veterans’ COLA FY2007
A House subcommittee has approved the veterans’ cost-of-living increase for FY2007 and the bill should
be on the floor by July. The Senate Veterans’ Affairs Committee will be holding a markup in a few weeks. The President’s budget
estimates an increase of 2.6%, but the Congressional budget estimates 2.2% or $530 million. The actual increase depends on the
Consumer Price Index. Increases have been approved by Congress every year since FY1976.
The Respect for America's Fallen Heroes Act Becomes Law
Thanks in part to tremendous support and advocacy from AFA membership, The Respect for America's Fallen Heroes Act, H.R. 5037 found
its way quickly to the White House and was signed into law by President George W. Bush on Memorial Day.
“It is fitting that legislation protecting the sanctity of military funerals at national cemeteries was
signed into law on Memorial Day,” said House Veterans Affairs Committee Chairman Steve Buyer. “We owe the living spirit of those who
made the highest sacrifice for our freedoms a profound debt of gratitude. Our obligation to these heroes and their families includes
a dignified funeral befitting their sacrifice.”
The new law prohibits demonstrations taking place within 300 feet of the entrance of a national cemetery
and within 150 feet of a road, pathway, or other route of ingress or egress from national cemeteries and Arlington National Cemetery,
60 minutes before and 60 minutes after a funeral.
Guard and Reserve Commission Interim Report Issued
June 8, 2006
On June 5, 2006, the Commission on the National Guard and Reserves released its 90-day interim report.
The Commission highlighted seven basic issues that need to be addressed
- The policies, laws, regulations, and practices
- The “long war”
- The sustained operational and demands on the reserve components.
- Balance between the operational and strategic use.
- Statutes and policies must be revised and updated.
- Confusion regarding chains of command when federal, state, and local authorities respond to
domestic disasters.
- The Defense Department’s and other federal agencies’ engagement with governors
and requested that the Department of Defense delay any “major and irreversible policy actions bearing on
the National Guard and Reserves” until the final report is released.
One of the prime elements addressed in the report was the need to balance between the operational and
strategic use of reserve components, highlighting that the “reserve components have been stretched to their limits” in the tactical
environment while they simultaneously serve as an integral component of Operation Noble Eagle and other domestic undertakings.
The report also stated that “statutes and policies that adversely affect the reserve components must be
revised and updated.” For example, the Commission stated that the chain of command governing the use of guard and reserve forces in
domestic disasters is confusing and requires expanded definition and clarity.
Additional issues discussed include giving the Chief of the National Guard Bureau more influence through
increased rank, budget authority, and/ or a place among the Joint Chiefs of Staff.
The Commission intends to report their findings and recommendations by March 1, 2007.
The report may be found at http://www.cngr.gov/resource-center.CNGR-reports.asp
VA Records Theft Update
Secretary of Veterans Affairs James Nicholson has named a Special Advisor for Information Security.
Richard M. Romney, former Maricopa County (AZ) attorney and a decorated veteran, will be responsible for evaluating the current state
of VA’s information security procedures and processes, and developing recommendations for improvement in VA’s information security
systems.
In a related move, Nicholson has ordered supervisors to assess data security. In a broadcast e-mail to
supervisors, Nicholson said, “I expect each and every one of you to know what sensitive and confidential data your subordinates,
including contractors, have access to and how, when and where data is used, especially in those areas where it is used or accessed
off-site.”
As revelations continue to be made public on a daily basis, it is abundantly clear that the VA does not
know exactly which records are subject to potential compromise. Further, they also do not know the parameters of information contained
in each individual record. While the Secretary has launched an investigation to find out, as reported above, they also do not know how
many VA employees nationwide have access to this sensitive information on their home computers as a result of telecommuting.
Congress now will start looking into the matter. The House Government Reform Committee has announced it
will hold hearings on VA security. The focus of the hearings will be whether tighter laws are necessary to prevent another incident.
The Committee also will examine whether or not all such data, in every government agency, should be encrypted.
AFA will continue to update its members as developments unfold.
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