[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2935 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 2935
To amend title 38, United States Code, to improve the processing of
veterans benefits by the Departments 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 individuals to the
United States, to improve due process accorded individuals with respect
to such recovery, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 30, 2021
Mr. Pappas (for himself and Mr. Nehls) introduced the following bill;
which was 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 Departments 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 individuals to the
United States, to improve due process accorded individuals 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``VA Beneficiary
Debt Collection Improvement Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Prohibition of debt arising from overpayment due to delay in
processing by the Department of Veterans
Affairs.
Sec. 3. Prohibition on Department of Veterans Affairs interest and
administrative cost charges for debts
relating to certain benefits programs.
Sec. 4. Extension of window to request relief from recovery of debt
arising under laws administered by the
Secretary of Veterans Affairs.
Sec. 5. Reforms relating to recovery by Department of Veterans Affairs
of amounts owed by individuals to the
United States.
SEC. 2. PROHIBITION OF DEBT ARISING FROM OVERPAYMENT DUE TO DELAY IN
PROCESSING BY THE DEPARTMENT OF VETERANS AFFAIRS.
(a) Bar to Recovery.--
(1) In general.--Chapter 53 of title 38, United States
Code, is amended by inserting after section 5302A the following
new section:
``Sec. 5302B. Prohibition of debt arising from overpayment due to delay
in processing
``(a) Limitation.--(1) Except as provided in paragraph (2), no
individual may incur a debt to the United States that--
``(A) arises from the participation of the individual in a
program or benefit administered by the Under Secretary for
Benefits; and
``(B) is attributable to the failure of an employee or
official of the Department to process information provided by
or on behalf of that individual within applicable timeliness
standards established by the Secretary.
``(2) Nothing in this section shall be construed to affect the
penal and forfeiture provisions for fiduciaries set forth in chapter 61
of this title.
``(b) Notice.--(1) If the Secretary determines that the Secretary
has made an overpayment to an individual, the Secretary shall provide
notice to the individual of the overpayment.
``(2) Notice under paragraph (1) shall include a detailed
explanation of the right of the individual--
``(A) to dispute the overpayment, including a detailed
explanation of the process by which to dispute the overpayment;
or
``(B) to request a waiver of indebtedness.
``(c) Delay on Collection.--(1) Subject to paragraph (2), the
Secretary may not take any action under section 3711 of title 31
regarding an overpayment described in a notice under subsection (b) of
this section until the date that is 90 days after the date the
Secretary issues such notice.
``(2) The Secretary may take action under section 3711 of title 31
regarding an overpayment described in a notice under subsection (b) of
this section before the date that is 90 days after the date the
Secretary issues such notice if the Secretary determines that delaying
such action is--
``(A) likely to make repayment of such overpayment more
difficult for an individual;
``(B) likely to cause an unpaid debt to be referred to the
Treasury Offset Program; or
``(C) not in the best interest of the individual.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 5302A the following new item:
``5302B. Prohibition of debt arising from overpayment due to delay in
processing.''.
(3) Deadline.--The Secretary of Veterans Affairs shall
prescribe regulations to establish standards under section
5302B(a)(2) of such title, as added by subsection (a), not
later than 180 days after the date of the enactment of this
Act.
(b) Plan for Improved Notification and Communication of Debts.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and one year thereafter, the
Secretary of Veterans Affairs shall submit to Congress a report
on the improvement of the notification of and communication
with individuals who receive overpayments made by the
Secretary.
(2) Contents.--Each report under paragraph (1) shall
include each of the following:
(A) The plan of the Secretary to carry out each of
the following:
(i) The development and implementation of a
mechanism by which individuals enrolled in the
patient enrollment system under section 1705 of
title 38, United States Code, may view their
monthly patient medical statements
electronically.
(ii) The development and implementation of
a mechanism by which individuals eligible for
benefits under the laws administered by the
Secretary may receive electronic correspondence
relating to debt and overpayment information.
(iii) The development and implementation,
by not later than October 1, 2022, of a
mechanism by which individuals eligible for
benefits under the laws administered by the
Secretary may access information related to
Department of Veterans Affairs debt
electronically.
(iv) The improvement and clarification of
Department communications relating to
overpayments and debt collection, including
letters and electronic correspondence and
including information relating to the most
common reasons individuals eligible for
benefits under the laws administered by the
Secretary incur debts to the United States and
the process for requesting a waiver of such
debt. The Secretary shall develop such
improvements and clarifications in consultation
with veterans service organizations, labor
organizations that represent employees of the
Department, and other relevant nongovernmental
organizations.
(B) A description of the current efforts and plans
for improving the accuracy of payments to individuals
entitled to benefits under the laws administered by the
Secretary, including specific data matching agreements.
(C) A description of steps to be taken to improve
the identification of underpayments to such individuals
and to improve Department procedures and policies to
ensure that such individuals who are underpaid receive
adequate compensation payments.
(D) A list of actions completed, implementation
steps, and timetables for each requirement described in
subparagraphs (A) through (C).
(E) A description of any new legislative authority
required to complete any such requirement.
SEC. 3. PROHIBITION ON DEPARTMENT OF VETERANS AFFAIRS INTEREST AND
ADMINISTRATIVE COST CHARGES FOR DEBTS RELATING TO CERTAIN
BENEFITS PROGRAMS.
(a) In General.--Section 5315(a)(1) of title 38, United States
Code, is amended--
(1) by striking ``other than a loan'' and all that follows
through the semicolon and inserting ``other than--''; and
(2) by adding at the end the following new subparagraphs:
``(A) a loan, loan-guaranty, or loan-insurance
program;
``(B) a disability compensation program;
``(C) a pension program; or
``(D) an educational assistance program.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply with respect to an indebtedness that occurs on or after the date
of the enactment of this Act.
SEC. 4. EXTENSION OF WINDOW TO REQUEST RELIEF FROM RECOVERY OF DEBT
ARISING UNDER LAWS ADMINISTERED BY THE SECRETARY OF
VETERANS AFFAIRS.
Section 5302(a) of title 38, United States Code, is amended by
striking ``180 days'' and inserting ``one year''.
SEC. 5. REFORMS RELATING TO RECOVERY BY DEPARTMENT OF VETERANS AFFAIRS
OF AMOUNTS OWED BY INDIVIDUALS TO THE UNITED STATES.
(a) Limitation on Indebtedness Offsets.--Subsection (a) of section
5314 of title 38, United States Code, is amended--
(1) by inserting ``(1)'' before ``Subject to''; and
(2) by adding at the end the following new paragraph:
``(2) The Secretary may not make a deduction under paragraph (1)
while the existence or amount of such indebtedness is disputed under
section 5314A of this title.''.
(b) Administrative Process for Dispute of Existence or Amount of
Indebtedness.--
(1) Establishment.--Chapter 53 of title 38, United States
Code, is amended by inserting after section 5314 the following
new section:
``Sec. 5314A. Dispute of indebtedness
``(a) Establishment.--The Secretary shall prescribe regulations
that establish an administrative process for the dispute of the
existence or amount of an indebtedness described in section 5314(a)(1)
of this title (without regard to whether the Secretary has made a
deduction under such section regarding such indebtedness).
``(b) Standards.--The process under subsection (a) shall be
efficient, effective, and equitable.
``(c) Timeliness.--The Secretary shall ensure that each dispute
under subsection (a) proceeds in accordance with standards for
timeliness prescribed by the Secretary under this section.
``(d) Limitation.--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 dispute pending under this
section.
``(e) Rule of Construction.--Nothing in this section shall be
construed to modify the procedures for seeking review of a decision of
the agency of original jurisdiction described in section 5104C(a)(1) of
this title.''.
(2) Existing administrative process.--The Secretary of
Veterans Affairs shall carry out section 5314A of such title,
as added by paragraph (1), by improving the administrative
process of the Department of Veterans Affairs for the dispute
of the existing or amount of an indebtedness that was in effect
on the day before the date of the enactment of this Act.
(3) Improvements to department website and notices.--In
carrying out paragraph (2), the Secretary shall--
(A) improve the website of the Department; and
(B) ensure that such website and written notices
sent to a person about indebtedness described in
section 5314(a) of title 38, United States Code,
contain all information a person needs to dispute such
an indebtedness, including a description of--
(i) the specific actions the person will
need to take in order to dispute the
indebtedness;
(ii) the documentation that will be
required for the dispute; and
(iii) how the documentation is to be
submitted.
(4) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 5314 the following new item:
``5314A. Dispute of indebtedness.''.
(c) Limitation on Authority To Recover Debts.--Section 5302(a) of
title 38, United States Code, is amended--
(1) by inserting ``(1)'' before ``There''; and
(2) by adding at the end the following new paragraph:
``(2) The Secretary may not seek to recover an indebtedness
described in paragraph (1) if the Secretary determines that the cost to
the Department to recover such indebtedness, as determined when the
debt is established, would exceed the amount of the indebtedness.''.
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