[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 805 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 805
To amend title 38, United States Code, to improve the processing of
veterans benefits by the Department of Veterans Affairs, to limit the
authority of the Secretary of Veterans Affairs to recover overpayments
made by the Department and other amounts owed by veterans to the United
States, to improve the due process accorded veterans with respect to
such recovery, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 14, 2019
Mr. Tester (for himself, Mr. Boozman, Mr. Brown, Mr. Blumenthal, Ms.
Stabenow, Ms. Harris, Ms. Warren, Mr. Wyden, and Mrs. Shaheen)
introduced the following bill; which was read twice and referred to the
Committee on Veterans' Affairs
_______________________________________________________________________
A BILL
To amend title 38, United States Code, to improve the processing of
veterans benefits by the Department of Veterans Affairs, to limit the
authority of the Secretary of Veterans Affairs to recover overpayments
made by the Department and other amounts owed by veterans to the United
States, to improve the due process accorded veterans with respect to
such recovery, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veteran Debt Fairness Act of 2019''.
SEC. 2. IMPROVING PROCESSING OF VETERANS BENEFITS BY DEPARTMENT OF
VETERANS AFFAIRS.
(a) Notification of Debts Incurred.--The Secretary of Veterans
Affairs shall make such changes to such information technology systems
of the Department of Veterans Affairs, including the eBenefits system
or successor system, as may be necessary so that a person who is
entitled to a payment from the Department by virtue of the person's
participation in a benefits program administered by the Secretary will
receive, at the request of the person, a notice from the Department
through means selected by the individual (by electronic mail or other
mechanism) whenever such person incurs a debt to the United States by
virtue of such participation.
(b) Updating Dependent Information.--The Secretary shall make such
changes to such information technology systems of the Department,
including the eBenefits system or successor system, as may be necessary
so that whenever the Secretary records in such systems information
about a dependent of a person, the person is able to review and revise
such information.
(c) Tracking of Metrics.--The Secretary shall make such changes to
such information technology systems of the Department as may be
necessary to track the following:
(1) The number and amount of payments made by the
Department to persons as part of a benefits program
administered by the Secretary which result in the persons
incurring a debt to the United States by virtue of such
payments.
(2) The average debt to the United States incurred by a
person by virtue of a payment described in paragraph (1).
(3) The frequency by which applications for relief under
section 5302(a) of title 38, United States Code, are approved
and denied.
(4) Such other metrics as the Secretary considers
appropriate.
SEC. 3. REFORMS RELATING TO RECOVERY BY DEPARTMENT OF VETERANS AFFAIRS
OF AMOUNTS OWED BY VETERANS TO THE UNITED STATES.
(a) Indebtedness Offsets.--
(1) Limitation on scope of authority.--Subsection (a) of
section 5314 of title 38, United States Code, is amended--
(A) by inserting ``(1)'' before ``Subject to'';
(B) in paragraph (1), as designated by subparagraph
(A), by striking ``to subsections (b) and (d) of this
section'' and inserting ``to paragraphs (2) through (6)
of this subsection, subsections (b) and (e) of this
section,''; and
(C) by adding at the end the following new
paragraph:
``(2) Notwithstanding any other provision of law, the Secretary may
only deduct under paragraph (1) an amount of the indebtedness of a
veteran, the estate of a veteran, a spouse or child of a veteran who is
deceased, or a recipient of educational assistance under chapter 30,
31, 32, 33, 34, or 35 of this title if the indebtedness is a result of
one or more of the following:
``(A) An error made by or failure to report required
information to the Department by the veteran, estate, spouse,
child, or recipient of educational assistance, as the case may
be.
``(B) Fraud perpetrated by the veteran, estate, spouse,
child, or recipient of educational assistance, as the case may
be.
``(C) A misrepresentation made by the veteran, estate,
spouse, child, or recipient of educational assistance, as the
case may be.
``(D) In the case of a recipient of educational assistance
under such chapters, a reduction in or termination of pursuit
of a program of education by the recipient.
``(E) A failure described in section 3319(i)(2)(A) of this
title.
``(3)(A) The Secretary may not deduct under paragraph (1) from any
payment made under chapter 11 or 15 of this title more than the lessor
of--
``(i) 25 percent of such payment; or
``(ii) such other percent of such payment as the Secretary
and the person whose future payments are to be reduced under
paragraph (1) agree would not cause a hardship to the person of
the payment.
``(B) A person whose future payments are to be reduced under
paragraph (1) may request, via the administrative process prescribed
under subsection (c), the Secretary make a determination under
subparagraph (A)(ii) of this paragraph.
``(4) In the case of an indebtedness that was incurred as a result
of an error or failure described in paragraph (2)(A), the Secretary may
not deduct under paragraph (1) any amount relating to such indebtedness
after the date that is five years after the date on which the debt was
incurred.
``(5) The Secretary may not deduct under paragraph (1) any amount
relating to an indebtedness while the existence or amount of such
indebtedness is being--
``(A) disputed under subsection (c); or
``(B) appealed.
``(6) The Secretary may not deduct under paragraph (1) any amount
if the Secretary determines that the cost that would be incurred by the
Department to recover such amount would exceed the amount to be
recovered.
``(7) Paragraphs (2) through (6) shall not apply to payments under
chapter 19 of this title.''.
(2) Due process.--
(A) Minimum period for notice.--Subsection (b) of
such section is amended--
(i) by amending paragraph (1) to read as
follows:
``(1) has made reasonable efforts to notify such person of
such person's right--
``(A) to dispute through prescribed administrative
processes the existence or amount of such indebtedness;
``(B) to request a waiver of such indebtedness
under section 5302 of this title; and
``(C) to request the Secretary make a determination
under subsection (a)(3)(A)(ii);''; and
(ii) by striking paragraph (3) and
inserting the following new paragraphs:
``(3) has notified such person about the proposed
deductions by mailing a notice of intent letter, which--
``(A) is mailed to the person--
``(i) in the case of a debt incurred by a
person by virtue of the person's participation
in a program of educational assistance
administered by the Secretary, not later than
45 days before making any of such deductions;
and
``(ii) in the case of a debt incurred by a
person by virtue of the person's participation
in any other benefit program administered by
the Secretary, not later than 90 days before
making any of such deductions; and
``(B) includes detailed information about the
indebtedness, including, in the case of an overpayment,
an itemized list of each overpayment and the specific
reason for the overpayment.''.
(B) Adjudication of disputes.--
(i) In general.--Such section is amended--
(I) by redesignating subsections
(c) and (d) as subsections (d) and (e);
and
(II) by inserting after subsection
(b) the following new subsection (c):
``(c)(1) The Secretary shall prescribe an administrative process
for--
``(A) the dispute of the existence or amount of an
indebtedness subject to subsection (a); and
``(B) making requests under paragraph (3)(B) of such
subsection.
``(2) The Secretary shall ensure that each dispute under paragraph
(1)(A) is adjudicated not later than 120 days after the dispute is
filed.
``(3) The Secretary may not submit to any debt collector (as
defined in section 803 of the Fair Debt Collection Practices Act (15
U.S.C. 1692a)) any debt pending adjudication under the process
prescribed under paragraph (1).
``(4) Nothing in this subsection shall be construed to prohibit a
person from seeking relief from a court of competent jurisdiction.''.
(ii) Limitations on interest and fees
charged during period of dispute.--Section 5315
of such title is amended--
(I) in subsection (b)(1), in the
first sentence by striking ``or (B)''
and inserting ``(B) for any period
during which the existence or amount of
the indebtedness is being disputed
under section 5314(c) of this title, or
(C)''; and
(II) in subsection (c)--
(aa) by inserting ``(1)''
before ``The administrative'';
and
(bb) by adding at the end
the following new paragraph:
``(2) No administrative costs may be charged under this section
with respect to an indebtedness described in subsection (a) while the
existence or amount of the indebtedness is being disputed under section
5314(c) of this title.''.
(3) Effective date.--This subsection and the amendments
made by this subsection shall take effect on the date of the
enactment of this Act and shall apply with respect to
deductions made under section 5314 of such title on or after
such date.
(4) Rule of construction.--This subsection and the
amendments made by this subsection shall be construed to apply
to an error in a payment to a person from the Department of
Veterans Affairs the person is entitled to by virtue of the
person's participation in a benefits program administered by
the Secretary of Veterans Affairs following the person's notice
to the Department of a change in the person's eligibility
regarding such benefit or participation.
(b) Limitation on Authority To Sue To Collect Certain Debts.--
(1) In general.--Section 5316(a) of such title is amended--
(A) in paragraph (1), by striking ``(2) and (3)''
and inserting ``(2), (3), and (4)'';
(B) by redesignating paragraph (3) as paragraph
(4); and
(C) by inserting after paragraph (2) the following
new paragraph (3):
``(3) In the case of an indebtedness that was incurred as a result
or an error or failure described in section 5314(a)(2)(A) of this
title, no suit may be filed under this section to recover the
indebtedness after the date that is five years after the date on which
the debt was incurred.''.
(2) Effective date.--This subsection and the amendments
made by this subsection shall take effect on the date of the
enactment of this Act and shall apply with respect to suits
filed under section 5316 of such title on or after such date.
(c) Limitation on Cooperation With Other Federal Agencies To
Collect.--Section 5316 of such title is amended by adding at the end
the following new subsection:
``(d) The Secretary may not provide any information or assistance
to any other element of the Federal Government to recover, whether by
bringing suit in a court of competent jurisdiction, by deducting
amounts from future payments, or by other method, any indebtedness of
any person who has been determined to be indebted to the United States
by virtue of such person's participation in a benefits program
administered by the Secretary if the Secretary does not have the
authority to recover such indebtedness under this title.''.
(d) Repair of Credit.--
(1) In general.--Chapter 53 of such title is amended by
adding at the end the following new section:
``Sec. 5320. Correction of erroneous information submitted to consumer
reporting agencies
``(a) Correcting Errors by the Department.--In any case in which
the Secretary finds that the Department has submitted erroneous
information to a consumer reporting agency about the indebtedness of
any person who has been determined by the Secretary to be indebted to
the United States by virtue of such person's participation in a
benefits program administered by the Secretary, the Secretary shall--
``(1) instruct the consumer reporting agency to remove such
erroneous information from the consumer report of such person
or take such other action as may be required to ensure that
such erroneous information is not included in the report of
such person; and
``(2) transmit to the consumer reporting agency such
information as the consumer reporting agency may require to
take such appropriate actions.
``(b) Correcting Errors by Debt Collectors.--In any case in which
the Secretary finds that a debt collector acting on behalf of the
Department has submitted erroneous information to a consumer reporting
agency about the indebtedness of any person who has been determined by
the Secretary to be indebted to the United States by virtue of such
person's participation in a benefits program administered by the
Secretary, the Secretary shall instruct the debt collector to request
the consumer reporting agency remove such erroneous information from
the consumer report of such person or take such other action as may be
required to ensure such erroneous information is not included in the
report of such person.''
``(c) Notice.--Not later than 60 days after the date on which the
Secretary issues an instruction under subsection (a)(1) or (b) with
respect to a person, the Secretary shall notify the person that the
Secretary issued such instruction.
``(d) Definitions.--In this section:
``(1) The terms `consumer report' and `consumer reporting
agency' have the meanings given such terms in section 603 of
the Fair Credit Reporting Act (15 U.S.C. 1681a).
``(2) The term `debt collector' has the meaning given such
term in section 803 of the Fair Debt Collection Practices Act
(15 U.S.C. 1692a).''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 53 of such title is amended by adding at
the end the following new item:
``5320. Correction of erroneous information submitted to consumer
reporting agencies.''.
(e) Audits.--
(1) One-time audit.--Not later than 180 days after the date
of the enactment of this Act, the Secretary of Veterans Affairs
shall complete an audit to determine the following:
(A) The frequency by which the Department of
Veterans Affairs makes an error that results in a
payment to a person by virtue of such person's
participation in a benefits program administered by the
Secretary that such person is not entitled to or in an
amount that exceeds the amount to which the person is
entitled.
(B) Whether and to what degree vacant positions in
the Veterans Benefits Administration affect such
errors.
(2) Annual audits.--Section 5314 of such title, as amended
by subsection (a), is further amended by adding at the end the
following new subsection:
``(f) Not less frequently than once each year, the Secretary shall
complete an audit of not less than 10 percent of all debts to the
United States incurred by virtue of a person's participation in a
benefits program administered by the Secretary to identify errors.''.
(f) Plan.--Not later than 180 days after the date of the enactment
of this Act, the Secretary shall submit to the Committee on Veterans'
Affairs of the Senate and the Committee on Veterans' Affairs of the
House of Representatives a plan and description of resource
requirements necessary to align information technology systems to
ensure that errors described in subsection (d)(1) are not the result of
communication or absence of communication between information
technology systems.
(g) Coordination With Other Federal Agencies.--
(1) Interagency working group.--The Secretary of Veterans
Affairs may establish an interagency working to assess how
executive agencies should submit timely information to the
Secretary of Veterans Affairs in order to reduce overpayments
to veterans in the event of a life event, such as a change in
work status, incarceration, or change in marital status.
(2) Quarterly reporting by secretary of defense to
secretary of veterans affairs.--Each quarter, the Secretary of
Defense shall transmit to the Secretary of Veterans Affairs
information on compensation received by members of the reserve
components of the Armed Forces who received during such quarter
for instruction, training, or other duties under section 206 of
title 37, United States Code.
<all>