II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


kjohnson on DSK79L0C42 with BILLS
2 

•S 805 IS

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Veteran Debt Fairness 

3 Act of 2019’’. 

4 SEC. 2. IMPROVING PROCESSING OF VETERANS BENEFITS 

5 BY DEPARTMENT OF VETERANS AFFAIRS. 

6 (a) NOTIFICATION OF DEBTS INCURRED.—The Sec7 retary of Veterans Affairs shall make such changes to such 

8 information technology systems of the Department of Vet9 erans Affairs, including the eBenefits system or successor 

10 system, as may be necessary so that a person who is enti11 tled to a payment from the Department by virtue of the 

12 person’s participation in a benefits program administered 

13 by the Secretary will receive, at the request of the person, 

14 a notice from the Department through means selected by 

15 the individual (by electronic mail or other mechanism) 

16 whenever such person incurs a debt to the United States 

17 by virtue of such participation. 

18 (b) UPDATING DEPENDENT INFORMATION.—The 

19 Secretary shall make such changes to such information 

20 technology systems of the Department, including the 

21 eBenefits system or successor system, as may be necessary 

22 so that whenever the Secretary records in such systems 

23 information about a dependent of a person, the person is 

24 able to review and revise such information. 

25 (c) TRACKING OF METRICS.—The Secretary shall 

26 make such changes to such information technology sysVerDate Sep 11 2014 04:23 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S805.IS S805

kjohnson on DSK79L0C42 with BILLS
3 

•S 805 IS

1 tems of the Department as may be necessary to track the 

2 following: 

3 (1) The number and amount of payments made 

4 by the Department to persons as part of a benefits 

5 program administered by the Secretary which result 

6 in the persons incurring a debt to the United States 

7 by virtue of such payments. 

8 (2) The average debt to the United States in9 curred by a person by virtue of a payment described 

10 in paragraph (1). 

11 (3) The frequency by which applications for re12 lief under section 5302(a) of title 38, United States 

13 Code, are approved and denied. 

14 (4) Such other metrics as the Secretary con15 siders appropriate. 

16 SEC. 3. REFORMS RELATING TO RECOVERY BY DEPART17 MENT OF VETERANS AFFAIRS OF AMOUNTS 

18 OWED BY VETERANS TO THE UNITED STATES. 

19 (a) INDEBTEDNESS OFFSETS.— 

20 (1) LIMITATION ON SCOPE OF AUTHORITY.— 

21 Subsection (a) of section 5314 of title 38, United 

22 States Code, is amended— 

23 (A) by inserting ‘‘(1)’’ before ‘‘Subject to’’; 

24 (B) in paragraph (1), as designated by 

25 subparagraph (A), by striking ‘‘to subsections 


kjohnson on DSK79L0C42 with BILLS
4 

•S 805 IS

1 (b) and (d) of this section’’ and inserting ‘‘to 

2 paragraphs (2) through (6) of this subsection, 

3 subsections (b) and (e) of this section,’’; and 

4 (C) by adding at the end the following new 

5 paragraph: 

6 ‘‘(2) Notwithstanding any other provision of law, the 

7 Secretary may only deduct under paragraph (1) an 

8 amount of the indebtedness of a veteran, the estate of a 

9 veteran, a spouse or child of a veteran who is deceased, 

10 or a recipient of educational assistance under chapter 30, 

11 31, 32, 33, 34, or 35 of this title if the indebtedness is 

12 a result of one or more of the following: 

13 ‘‘(A) An error made by or failure to report re14 quired information to the Department by the vet15 eran, estate, spouse, child, or recipient of edu16 cational assistance, as the case may be. 

17 ‘‘(B) Fraud perpetrated by the veteran, estate, 

18 spouse, child, or recipient of educational assistance, 

19 as the case may be. 

20 ‘‘(C) A misrepresentation made by the veteran, 

21 estate, spouse, child, or recipient of educational as22 sistance, as the case may be. 

23 ‘‘(D) In the case of a recipient of educational 

24 assistance under such chapters, a reduction in or 


kjohnson on DSK79L0C42 with BILLS
5 

•S 805 IS

1 termination of pursuit of a program of education by 

2 the recipient. 

3 ‘‘(E) A failure described in section 

4 3319(i)(2)(A) of this title. 

5 ‘‘(3)(A) The Secretary may not deduct under para6 graph (1) from any payment made under chapter 11 or 

7 15 of this title more than the lessor of— 

8 ‘‘(i) 25 percent of such payment; or 

9 ‘‘(ii) such other percent of such payment as the 

10 Secretary and the person whose future payments are 

11 to be reduced under paragraph (1) agree would not 

12 cause a hardship to the person of the payment. 

13 ‘‘(B) A person whose future payments are to be re14 duced under paragraph (1) may request, via the adminis15 trative process prescribed under subsection (c), the Sec16 retary make a determination under subparagraph (A)(ii) 

17 of this paragraph. 

18 ‘‘(4) In the case of an indebtedness that was incurred 

19 as a result of an error or failure described in paragraph 

20 (2)(A), the Secretary may not deduct under paragraph (1) 

21 any amount relating to such indebtedness after the date 

22 that is five years after the date on which the debt was 

23 incurred. 


kjohnson on DSK79L0C42 with BILLS
6 

•S 805 IS

1 ‘‘(5) The Secretary may not deduct under paragraph 

2 (1) any amount relating to an indebtedness while the ex3 istence or amount of such indebtedness is being— 

4 ‘‘(A) disputed under subsection (c); or 

5 ‘‘(B) appealed. 

6 ‘‘(6) The Secretary may not deduct under paragraph 

7 (1) any amount if the Secretary determines that the cost 

8 that would be incurred by the Department to recover such 

9 amount would exceed the amount to be recovered. 

10 ‘‘(7) Paragraphs (2) through (6) shall not apply to 

11 payments under chapter 19 of this title.’’. 

12 (2) DUE PROCESS.— 

13 (A) MINIMUM PERIOD FOR NOTICE.—Sub14 section (b) of such section is amended— 

15 (i) by amending paragraph (1) to read 

16 as follows: 

17 ‘‘(1) has made reasonable efforts to notify such 

18 person of such person’s right— 

19 ‘‘(A) to dispute through prescribed admin20 istrative processes the existence or amount of 

21 such indebtedness; 

22 ‘‘(B) to request a waiver of such indebted23 ness under section 5302 of this title; and 


kjohnson on DSK79L0C42 with BILLS
7 

•S 805 IS

1 ‘‘(C) to request the Secretary make a de2 termination under subsection (a)(3)(A)(ii);’’; 

3 and 

4 (ii) by striking paragraph (3) and in5 serting the following new paragraphs: 

6 ‘‘(3) has notified such person about the pro7 posed deductions by mailing a notice of intent letter, 

8 which— 

9 ‘‘(A) is mailed to the person— 

10 ‘‘(i) in the case of a debt incurred by 

11 a person by virtue of the person’s partici12 pation in a program of educational assist13 ance administered by the Secretary, not 

14 later than 45 days before making any of 

15 such deductions; and 

16 ‘‘(ii) in the case of a debt incurred by 

17 a person by virtue of the person’s partici18 pation in any other benefit program ad19 ministered by the Secretary, not later than 

20 90 days before making any of such deduc21 tions; and 

22 ‘‘(B) includes detailed information about 

23 the indebtedness, including, in the case of an 

24 overpayment, an itemized list of each overpayVerDate Sep 11 2014 04:23 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S805.IS S805

kjohnson on DSK79L0C42 with BILLS
8 

•S 805 IS

1 ment and the specific reason for the overpay2 ment.’’. 

3 (B) ADJUDICATION OF DISPUTES.— 

4 (i) IN GENERAL.—Such section is 

5 amended— 

6 (I) by redesignating subsections 

7 (c) and (d) as subsections (d) and (e); 

8 and 

9 (II) by inserting after subsection 

10 (b) the following new subsection (c): 

11 ‘‘(c)(1) The Secretary shall prescribe an administra12 tive process for— 

13 ‘‘(A) the dispute of the existence or amount of 

14 an indebtedness subject to subsection (a); and 

15 ‘‘(B) making requests under paragraph (3)(B) 

16 of such subsection. 

17 ‘‘(2) The Secretary shall ensure that each dispute 

18 under paragraph (1)(A) is adjudicated not later than 120 

19 days after the dispute is filed. 

20 ‘‘(3) The Secretary may not submit to any debt col21 lector (as defined in section 803 of the Fair Debt Collec22 tion Practices Act (15 U.S.C. 1692a)) any debt pending 

23 adjudication under the process prescribed under para24 graph (1). 


kjohnson on DSK79L0C42 with BILLS
9 

•S 805 IS

1 ‘‘(4) Nothing in this subsection shall be construed to 

2 prohibit a person from seeking relief from a court of com3 petent jurisdiction.’’. 

4 (ii) LIMITATIONS ON INTEREST AND

5 FEES CHARGED DURING PERIOD OF DIS6 PUTE.—Section 5315 of such title is 

7 amended— 

8 (I) in subsection (b)(1), in the 

9 first sentence by striking ‘‘or (B)’’ 

10 and inserting ‘‘(B) for any period dur11 ing which the existence or amount of 

12 the indebtedness is being disputed 

13 under section 5314(c) of this title, or 

14 (C)’’; and 

15 (II) in subsection (c)— 

16 (aa) by inserting ‘‘(1)’’ be17 fore ‘‘The administrative’’; and 

18 (bb) by adding at the end 

19 the following new paragraph: 

20 ‘‘(2) No administrative costs may be charged under 

21 this section with respect to an indebtedness described in 

22 subsection (a) while the existence or amount of the indebt23 edness is being disputed under section 5314(c) of this 

24 title.’’. 


kjohnson on DSK79L0C42 with BILLS
10 

•S 805 IS

1 (3) EFFECTIVE DATE.—This subsection and the 

2 amendments made by this subsection shall take ef3 fect on the date of the enactment of this Act and 

4 shall apply with respect to deductions made under 

5 section 5314 of such title on or after such date. 

6 (4) RULE OF CONSTRUCTION.—This subsection 

7 and the amendments made by this subsection shall 

8 be construed to apply to an error in a payment to 

9 a person from the Department of Veterans Affairs 

10 the person is entitled to by virtue of the person’s 

11 participation in a benefits program administered by 

12 the Secretary of Veterans Affairs following the per13 son’s notice to the Department of a change in the 

14 person’s eligibility regarding such benefit or partici15 pation. 

16 (b) LIMITATION ON AUTHORITY TO SUE TO COL17 LECT CERTAIN DEBTS.— 

18 (1) IN GENERAL.—Section 5316(a) of such title 

19 is amended— 

20 (A) in paragraph (1), by striking ‘‘(2) and 

21 (3)’’ and inserting ‘‘(2), (3), and (4)’’; 

22 (B) by redesignating paragraph (3) as 

23 paragraph (4); and 

24 (C) by inserting after paragraph (2) the 

25 following new paragraph (3): 


kjohnson on DSK79L0C42 with BILLS
11 

•S 805 IS

1 ‘‘(3) In the case of an indebtedness that was incurred 

2 as a result or an error or failure described in section 

3 5314(a)(2)(A) of this title, no suit may be filed under this 

4 section to recover the indebtedness after the date that is 

5 five years after the date on which the debt was incurred.’’. 

6 (2) EFFECTIVE DATE.—This subsection and the 

7 amendments made by this subsection shall take ef8 fect on the date of the enactment of this Act and 

9 shall apply with respect to suits filed under section 

10 5316 of such title on or after such date. 

11 (c) LIMITATION ON COOPERATION WITH OTHER

12 FEDERAL AGENCIES TO COLLECT.—Section 5316 of such 

13 title is amended by adding at the end the following new 

14 subsection: 

15 ‘‘(d) The Secretary may not provide any information 

16 or assistance to any other element of the Federal Govern17 ment to recover, whether by bringing suit in a court of 

18 competent jurisdiction, by deducting amounts from future 

19 payments, or by other method, any indebtedness of any 

20 person who has been determined to be indebted to the 

21 United States by virtue of such person’s participation in 

22 a benefits program administered by the Secretary if the 

23 Secretary does not have the authority to recover such in24 debtedness under this title.’’. 

25 (d) REPAIR OF CREDIT.— 


kjohnson on DSK79L0C42 with BILLS
12 

•S 805 IS

1 (1) IN GENERAL.—Chapter 53 of such title is 

2 amended by adding at the end the following new sec3 tion: 

4 ‘‘§ 5320. Correction of erroneous information sub5 mitted to consumer reporting agencies 

6 ‘‘(a) CORRECTING ERRORS BY THE DEPARTMENT.— 

7 In any case in which the Secretary finds that the Depart8 ment has submitted erroneous information to a consumer 

9 reporting agency about the indebtedness of any person 

10 who has been determined by the Secretary to be indebted 

11 to the United States by virtue of such person’s participa12 tion in a benefits program administered by the Secretary, 

13 the Secretary shall— 

14 ‘‘(1) instruct the consumer reporting agency to 

15 remove such erroneous information from the con16 sumer report of such person or take such other ac17 tion as may be required to ensure that such erro18 neous information is not included in the report of 

19 such person; and 

20 ‘‘(2) transmit to the consumer reporting agency 

21 such information as the consumer reporting agency 

22 may require to take such appropriate actions. 

23 ‘‘(b) CORRECTING ERRORS BY DEBT COLLECTORS.— 

24 In any case in which the Secretary finds that a debt col25 lector acting on behalf of the Department has submitted 


kjohnson on DSK79L0C42 with BILLS
13 

•S 805 IS

1 erroneous information to a consumer reporting agency 

2 about the indebtedness of any person who has been deter3 mined by the Secretary to be indebted to the United States 

4 by virtue of such person’s participation in a benefits pro5 gram administered by the Secretary, the Secretary shall 

6 instruct the debt collector to request the consumer report7 ing agency remove such erroneous information from the 

8 consumer report of such person or take such other action 

9 as may be required to ensure such erroneous information 

10 is not included in the report of such person.’’ 

11 ‘‘(c) NOTICE.—Not later than 60 days after the date 

12 on which the Secretary issues an instruction under sub13 section (a)(1) or (b) with respect to a person, the Sec14 retary shall notify the person that the Secretary issued 

15 such instruction. 

16 ‘‘(d) DEFINITIONS.—In this section: 

17 ‘‘(1) The terms ‘consumer report’ and ‘con18 sumer reporting agency’ have the meanings given 

19 such terms in section 603 of the Fair Credit Report20 ing Act (15 U.S.C. 1681a). 

21 ‘‘(2) The term ‘debt collector’ has the meaning 

22 given such term in section 803 of the Fair Debt Col23 lection Practices Act (15 U.S.C. 1692a).’’. 

24 (2) CLERICAL AMENDMENT.—The table of sec25 tions at the beginning of chapter 53 of such title is 


kjohnson on DSK79L0C42 with BILLS
14 

•S 805 IS

1 amended by adding at the end the following new 

2 item: 

‘‘5320. Correction of erroneous information submitted to consumer reporting 

agencies.’’. 

3 (e) AUDITS.— 

4 (1) ONE-TIME AUDIT.—Not later than 180 days 

5 after the date of the enactment of this Act, the Sec6 retary of Veterans Affairs shall complete an audit to 

7 determine the following: 

8 (A) The frequency by which the Depart9 ment of Veterans Affairs makes an error that 

10 results in a payment to a person by virtue of 

11 such person’s participation in a benefits pro12 gram administered by the Secretary that such 

13 person is not entitled to or in an amount that 

14 exceeds the amount to which the person is enti15 tled. 

16 (B) Whether and to what degree vacant 

17 positions in the Veterans Benefits Administra18 tion affect such errors. 

19 (2) ANNUAL AUDITS.—Section 5314 of such 

20 title, as amended by subsection (a), is further 

21 amended by adding at the end the following new 

22 subsection: 

23 ‘‘(f) Not less frequently than once each year, the Sec24 retary shall complete an audit of not less than 10 percent 


kjohnson on DSK79L0C42 with BILLS
15 

•S 805 IS

1 of all debts to the United States incurred by virtue of a 

2 person’s participation in a benefits program administered 

3 by the Secretary to identify errors.’’. 

4 (f) PLAN.—Not later than 180 days after the date 

5 of the enactment of this Act, the Secretary shall submit 

6 to the Committee on Veterans’ Affairs of the Senate and 

7 the Committee on Veterans’ Affairs of the House of Rep8 resentatives a plan and description of resource require9 ments necessary to align information technology systems 

10 to ensure that errors described in subsection (d)(1) are 

11 not the result of communication or absence of communica12 tion between information technology systems. 

13 (g) COORDINATION WITH OTHER FEDERAL AGEN14 CIES.— 

15 (1) INTERAGENCY WORKING GROUP.—The Sec16 retary of Veterans Affairs may establish an inter17 agency working to assess how executive agencies 

18 should submit timely information to the Secretary of 

19 Veterans Affairs in order to reduce overpayments to 

20 veterans in the event of a life event, such as a 

21 change in work status, incarceration, or change in 

22 marital status. 

23 (2) QUARTERLY REPORTING BY SECRETARY OF

24 DEFENSE TO SECRETARY OF VETERANS AFFAIRS.— 

25 Each quarter, the Secretary of Defense shall transVerDate Sep 11 2014 04:23 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S805.IS S805

kjohnson on DSK79L0C42 with BILLS
16 

•S 805 IS

1 mit to the Secretary of Veterans Affairs information 

2 on compensation received by members of the reserve 

3 components of the Armed Forces who received dur4 ing such quarter for instruction, training, or other 

5 duties under section 206 of title 37, United States 

6 Code. 

Æ 


kjohnson on DSK79L0C42 with BILLS