GovernmentExecutive.com

The House Judiciary Committee took a step Wednesday toward compensating veterans who might be victims of identity theft because of the loss of millions of Veterans Affairs Department personnel records.

On a voice vote, the committee approved the legislation, clearing the way for likely House approval next week. The bill is in response to the theft of a laptop computer reportedly holding the files of 26.5 million veterans from the Maryland home of a Veteran Affairs employee.

An Office of Veterans Identity Protection Claims would be established to process claims of veterans who might have their identities stolen by thieves who steal money or run up credit card bills.

Democrats complained the legislation was not strong enough. It is a "half-hearted way" to address the problem, said Judiciary ranking member John Conyers, D-Mich. He said the bill "tells 26.5 million veterans to deal with the problem themselves." The bill sets up a system of filing claims that might require hiring an attorney.

A Conyers substitute that would require the VA to provide numerous services, including credit monitoring and fraud alerts, was ruled out of order by Judiciary Chairman James Sensenbrenner, R-Wis., on grounds it interfered with the jurisdiction of the House Financial Affairs Committee.

A Conyers amendment to raise the maximum attorneys' fees under the bill from 10 percent of the paid claim to 25 percent failed on a 19-13 roll call. Democrats argued 10 percent was too low to attract lawyers.

An amendment by Rep. Bobby Scott, D-Va., for a $2 million per year authorization for five years for a Justice Department probe of the computer file theft was accepted on a voice vote.

A Scott amendment was adopted by voice vote to extend the time for a veteran to file a claim to two years from the time a problem is identified.