Veteran Debt Fairness Act of 2018
This bill limits the ability of the Department of Veterans Affair to recover overpayments of benefits from veterans.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7144 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 7144
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 HOUSE OF REPRESENTATIVES
November 16, 2018
Mr. Delaney (for himself, Mr. Trott, Mr. Ryan of Ohio, Mr. Coffman, Mr.
Sean Patrick Maloney of New York, Mrs. Dingell, Mr. Foster, Mr. Raskin,
Mr. Kilmer, and Mr. Johnson of Georgia) 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 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 2018''.
SEC. 2. LIMITATIONS ON AUTHORITY OF THE SECRETARY OF VETERANS AFFAIRS
TO RECOVER AMOUNTS OWED BY VETERANS TO THE UNITED STATES.
(a) Indebtedness Offsets.--Section 5314 of title 38, United States
Code, is amended as follows:
(1) In subsection (a)--
(A) by inserting ``Authority To Offset;
Limitations.--(1)'' before ``Subject to'';
(B) by striking ``subsections (b) and (d) of this
section and'' and inserting ``paragraphs (2) and (3) of
this subsection, subsections (b) and (d) of this
section, and''; and
(C) by adding at the end the following new
paragraph:
``(2) The Secretary may make a deduction under paragraph (1) only
if--
``(A) the indebtedness to the United States described in
that paragraph--
``(i) is the result of an error, a
misrepresentation, or fraud by the person described in
that paragraph;
``(ii) in the case of an error by the person
described in that paragraph, is less than five years
old;
``(iii) is not in dispute under regulations
prescribed pursuant to subsection (d)(2)(A); and
``(iv) exceeds $2,500; and
``(B) the Secretary determines that the amount of the
indebtedness exceeds the cost to the Department to recover the
indebtedness.
``(3) The Secretary may not make a deduction under paragraph (1) to
a payment under chapter 11 or 15 of this title that exceeds the lesser
of--
``(A) 25 percent of the payment; and
``(B) a percentage that the Secretary determines is the
greatest percentage that would not cause a hardship to the
recipient.''.
(2) In subsection (b)--
(A) by striking ``Deductions may not be made'' and
inserting ``Notice Required.--No deduction may be
made'';
(B) by striking ``unless the Secretary'' and
inserting ``until after'';
(C) by amending paragraph (1) to read as follows:
``(1) the Secretary has made reasonable efforts to notify the
person of the person's right--
``(A) to dispute the existence or amount of such
indebtedness under regulations prescribed pursuant to
subsection (d)(2)(A);
``(B) to request a waiver of such indebtedness under
section 5302 of this title; and
``(C) in the case of a payment under chapter 11 or 15 of
this title, to request the Secretary make a determination under
subsection (a)(3)(B);''; and
(D) in paragraph (2), by inserting ``the
Secretary'' before ``has made''; and
(E) by amending paragraph (3) to read as follows:
``(3) the day that is 90 calendar days after the day the Secretary
sends notice to the person of the indebtedness and of the proposed
deduction.''.
(3) In subsection (c), by inserting ``Inapplicability of
Statutes of Limitations to Administrative Actions.--'' before
``Notwithstanding''.
(4) In subsection (d)--
(A) by inserting ``Regulations.--(1)'' before ``The
Secretary'' ; and
(B) by adding at the end the following new
paragraph:
``(2) The regulations under paragraph (1) shall include
administrative processes by which a person described in paragraph (1)
of subsection (a) may--
``(A) dispute the existence or amount of indebtedness
described in that paragraph; and
``(B) request that the Secretary make a determination under
paragraph (3)(B) of such subsection.
``(3) The regulations under paragraph (1) shall direct the
Secretary to ensure that each dispute under paragraph (2)(A) is
adjudicated not later than 120 days after the initiation of such
dispute.
``(4) The regulations under paragraph (1) may not permit the
Secretary to submit to any debt collector (as defined in section 803 of
the Fair Debt Collection Practices Act (15 U.S.C. 1692a)) any debt in
dispute under paragraph (2)(A).
``(5) Nothing in this subsection shall be construed to prohibit a
person from seeking relief from a court of competent jurisdiction.''.
(b) Limitations on Interest and Fees Charged During Period of
Dispute.--Section 5315 of such title is amended--
(1) 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
regulations prescribed pursuant to section 5314(d) of this
title, or (C)''; and
(2) in subsection (c)--
(A) by inserting ``(1)'' before ``The
administrative''; and
(B) by adding at the end the following new
paragraph:
``(2) No administrative costs may be charged under this section
with respect to indebtedness described in subsection (a) while the
existence or amount of the indebtedness is being disputed under section
5314(d) of this title.''.
(c) Limitation on Authority To Sue To Collect Certain Debts.--
Section 5316(a) of title 38, United States, is amended--
(1) in paragraph (1), by striking ``paragraphs (2) and
(3)'' and inserting ``paragraphs (2), (3), and (4)'';
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following new
paragraph (3):
``(3) No suit may be filed under this section to recover any
indebtedness more than five years old.''.
(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 the participation of that person 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 the
participation of that person 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) Effective Date.--The amendments made by this section 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,
administrative costs under section 5315 of such title, and suits filed
under section 5316 of such title on or after such date.
SEC. 3. IMPROVED PROCESSING OF BENEFITS BY DEPARTMENT OF VETERANS
AFFAIRS.
The Secretary of Veterans Affairs shall improve the information
technology of the Department of Veterans Affairs (including the
eBenefits system or successor system) as may be necessary to achieve
the following:
(1) Notification of debts incurred.--The Secretary shall
provide a notification to a person who--
(A) is entitled to a payment from the Secretary
under a benefits program administered by the Secretary;
(B) incurs a debt to the United States under that
benefits program; and
(C) elects to receive such notifications.
(2) Review of information regarding dependents.--A person
entitled to a payment from the Secretary under a benefits
program administered by the Secretary may review information
relating to dependents of that person.
(3) Tracking metrics.--The Secretary shall be able to
track--
(A) the number and amount of payments made by the
Secretary to a person entitled to a payment from the
Secretary under a benefits program administered by the
Secretary who incurs a debt to the United States under
such program;
(B) the average debt to the United States incurred
by a person described in subparagraph (A);
(C) how frequently the Secretary approves and
denies applications for relief under section 5302(a) of
title 38, United States Code; and
(D) such other metrics the Secretary determines
appropriate.
SEC. 4. AUDIT OF ERRONEOUS PAYMENTS BY VETERANS BENEFITS
ADMINISTRATION; PLAN OF CORRECTION.
(a) 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:
(1) 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.
(2) Whether and to what degree vacant positions in the
Veterans Benefits Administration affect such frequency.
(b) Plan.--Not later than 30 days after the completion of the audit
under subsection (a), the Secretary of Veterans Affairs shall submit to
the Committees on Veterans' Affairs of the Senate and House of
Representatives a plan and description of resources necessary to align
information technology systems to ensure that errors described in
subsection (a)(1) are not the result of communication or absence of
communication between information technology systems.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Veterans' Affairs.
Referred to the Subcommittee on Disability Assistance and Memorial Affairs.
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