II 

Calendar No. 539 

116TH CONGRESS 

2D 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, Mrs. SHAHEEN, 

Ms. BALDWIN, and Ms. KLOBUCHAR) introduced the following bill; which 

was read twice and referred to the Committee on Veterans’ Affairs 

SEPTEMBER 15, 2020 

Reported by Mr. MORAN, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

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 acVerDate Sep 11 2014 00:32 Sep 16, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\S805.RS S805

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corded 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, 

3 SECTION 1. SHORT TITLE. 

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

5 Act of 2019’’. 

6 SEC. 2. IMPROVING PROCESSING OF VETERANS BENEFITS 

7 BY DEPARTMENT OF VETERANS AFFAIRS. 

8 (a) NOTIFICATION OF DEBTS INCURRED.—The Sec9 retary of Veterans Affairs shall make such changes to such 

10 information technology systems of the Department of Vet11 erans Affairs, including the eBenefits system or successor 

12 system, as may be necessary so that a person who is enti13 tled to a payment from the Department by virtue of the 

14 person’s participation in a benefits program administered 

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

16 a notice from the Department through means selected by 

17 the individual (by electronic mail or other mechanism) 

18 whenever such person incurs a debt to the United States 

19 by virtue of such participation. 

20 (b) UPDATING DEPENDENT INFORMATION.—The 

21 Secretary shall make such changes to such information 

22 technology systems of the Department, including the 

23 eBenefits system or successor system, as may be necessary 

24 so that whenever the Secretary records in such systems 


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

2 able to review and revise such information. 

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

4 make such changes to such information technology sys5 tems of the Department as may be necessary to track the 

6 following: 

7 (1) The number and amount of payments made 

8 by the Department to persons as part of a benefits 

9 program administered by the Secretary which result 

10 in the persons incurring a debt to the United States 

11 by virtue of such payments. 

12 (2) The average debt to the United States in13 curred by a person by virtue of a payment described 

14 in paragraph (1). 

15 (3) The frequency by which applications for re16 lief under section 5302(a) of title 38, United States 

17 Code, are approved and denied. 

18 (4) Such other metrics as the Secretary con19 siders appropriate. 

20 SEC. 3. REFORMS RELATING TO RECOVERY BY DEPART21 MENT OF VETERANS AFFAIRS OF AMOUNTS 

22 OWED BY VETERANS TO THE UNITED STATES. 

23 (a) INDEBTEDNESS OFFSETS.— 


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1 (1) LIMITATION ON SCOPE OF AUTHORITY.— 

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

3 States Code, is amended— 

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

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

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

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

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

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

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

11 paragraph: 

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

13 Secretary may only deduct under paragraph (1) an 

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

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

16 or a recipient of educational assistance under chapter 30, 

17 31, 32, 33, 34, or 35 of this title if the indebtedness is 

18 a result of one or more of the following: 

19 ‘‘(A) An error made by or failure to report re20 quired information to the Department by the vet21 eran, estate, spouse, child, or recipient of edu22 cational assistance, as the case may be. 

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

24 spouse, child, or recipient of educational assistance, 

25 as the case may be. 


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

2 estate, spouse, child, or recipient of educational as3 sistance, as the case may be. 

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

5 assistance under such chapters, a reduction in or 

6 termination of pursuit of a program of education by 

7 the recipient. 

8 ‘‘(E) A failure described in section 

9 3319(i)(2)(A) of this title. 

10 ‘‘(3)(A) The Secretary may not deduct under para11 graph (1) from any payment made under chapter 11 or 

12 15 of this title more than the lessor of— 

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

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

15 Secretary and the person whose future payments are 

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

17 cause a hardship to the person of the payment. 

18 ‘‘(B) A person whose future payments are to be re19 duced under paragraph (1) may request, via the adminis20 trative process prescribed under subsection (c), the Sec21 retary make a determination under subparagraph (A)(ii) 

22 of this paragraph. 

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

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

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


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1 any amount relating to such indebtedness after the date 

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

3 incurred. 

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

5 (1) any amount relating to an indebtedness while the ex6 istence or amount of such indebtedness is being— 

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

8 ‘‘(B) appealed. 

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

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

11 that would be incurred by the Department to recover such 

12 amount would exceed the amount to be recovered. 

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

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

15 (2) DUE PROCESS.— 

16 (A) MINIMUM PERIOD FOR NOTICE.—Sub17 section (b) of such section is amended— 

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

19 as follows: 

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

21 person of such person’s right— 

22 ‘‘(A) to dispute through prescribed admin23 istrative processes the existence or amount of 

24 such indebtedness; 


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1 ‘‘(B) to request a waiver of such indebted2 ness under section 5302 of this title; and 

3 ‘‘(C) to request the Secretary make a de4 termination under subsection (a)(3)(A)(ii);’’; 

5 and 

6 (ii) by striking paragraph (3) and in7 serting the following new paragraphs: 

8 ‘‘(3) has notified such person about the pro9 posed deductions by mailing a notice of intent letter, 

10 which— 

11 ‘‘(A) is mailed to the person— 

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

13 a person by virtue of the person’s partici14 pation in a program of educational assist15 ance administered by the Secretary, not 

16 later than 45 days before making any of 

17 such deductions; and 

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

19 a person by virtue of the person’s partici20 pation in any other benefit program ad21 ministered by the Secretary, not later than 

22 90 days before making any of such deduc23 tions; and 

24 ‘‘(B) includes detailed information about 

25 the indebtedness, including, in the case of an 


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1 overpayment, an itemized list of each overpay2 ment and the specific reason for the overpay3 ment.’’. 

4 (B) ADJUDICATION OF DISPUTES.— 

5 (i) IN GENERAL.—Such section is 

6 amended— 

7 (I) by redesignating subsections 

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

9 and 

10 (II) by inserting after subsection 

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

12 ‘‘(c)(1) The Secretary shall prescribe an administra13 tive process for— 

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

15 an indebtedness subject to subsection (a); and 

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

17 of such subsection. 

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

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

20 days after the dispute is filed. 

21 ‘‘(3) The Secretary may not submit to any debt col22 lector (as defined in section 803 of the Fair Debt Collec23 tion Practices Act (15 U.S.C. 1692a)) any debt pending 

24 adjudication under the process prescribed under para25 graph (1). 


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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.’’. 


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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): 


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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.— 


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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 


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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 


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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 


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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 00:32 Sep 16, 2020 Jkt 099200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6401 E:\BILLS\S805.RS S805

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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. 

7 SECTION 1. SHORT TITLE. 

8 This Act may be cited as the ‘‘Stopping Harm and 

9 Implementing Enhanced Lead-time for Debts for Veterans 

10 Act of 2020’’ or the ‘‘SHIELD for Veterans Act of 2020’’. 

11 SEC. 2. PROHIBITION OF DEBT ARISING FROM OVERPAY12 MENT DUE TO DELAY IN PROCESSING BY THE 

13 DEPARTMENT OF VETERANS AFFAIRS. 

14 (a) BAR TO RECOVERY.— 

15 (1) IN GENERAL.—Chapter 53 of title 38, United 

16 States Code, is amended by inserting after section 

17 5302A the following new section: 

18 ‘‘§ 5302B. Prohibition of debt arising from overpay19 ment due to delay in processing 

20 ‘‘(a) LIMITATION.—No individual may incur a debt 

21 to the United States that— 

22 ‘‘(1) arises from any program or benefit admin23 istered by the Secretary; and 

24 ‘‘(2) is attributable to the failure of an employee 

25 or official of the Department to process information 


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1 provided by or on behalf of that individual within 

2 applicable timeliness standards established by the 

3 Secretary. 

4 ‘‘(b) NOTICE TO BENEFICIARY.—(1) If the Secretary 

5 determines that the Secretary has made an overpayment to 

6 an individual, the Secretary shall provide notice to the in7 dividual of the overpayment. 

8 ‘‘(2) Notice under paragraph (1) shall include a de9 tailed explanation of the right of the individual— 

10 ‘‘(A) to dispute the overpayment, including a de11 tailed explanation of the process by which to dispute 

12 the overpayment; or 

13 ‘‘(B) to request a waiver of indebtedness. 

14 ‘‘(c) DELAY ON COLLECTION.—The Secretary may not 

15 take any action under section 3711 of title 31 regarding 

16 an overpayment described in a notice under subsection (b) 

17 until the date that is 90 days after the date the Secretary 

18 issues such notice.’’. 

19 (2) CLERICAL AMENDMENT.—The table of sec20 tions at the beginning of such chapter is amended by 

21 inserting after the item relating to section 5302A the 

22 following new item: 

‘‘5302B. Prohibition of debt arising from overpayment due to delay in processing.’’. 

23 (3) DEADLINE.—The Secretary of Veterans Af24 fairs shall prescribe regulations to establish standards 


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1 under section 5302B(a)(2) of such title, as added by 

2 subsection (a), not later than 180 days after the date 

3 of the enactment of this Act. 

4 (b) PLAN FOR IMPROVED NOTIFICATION AND COMMU5 NICATION OF DEBTS.— 

6 (1) IN GENERAL.—Not later than 180 days after 

7 the date of the enactment of this Act, and one year 

8 thereafter, the Secretary of Veterans Affairs shall sub9 mit to Congress a report on the improvement of the 

10 notification of and communication with individuals 

11 who receive overpayments made by the Secretary. 

12 (2) CONTENTS.—Each report under paragraph 

13 (1) shall include each of the following: 

14 (A) The plan of the Secretary to carry out 

15 each of the following: 

16 (i) The development and implementa17 tion of a mechanism by which individuals 

18 enrolled in the patient enrollment system 

19 under section 1705 of title 38, United States 

20 Code, may view their monthly patient med21 ical statements electronically. 

22 (ii) The development and implementa23 tion of a mechanism by which individuals 

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1 tronic correspondence relating to debt and 

2 overpayment information. 

3 (iii) The development and implementa4 tion, by not later than October 1, 2022, of 

5 a mechanism by which individuals eligible 

6 for benefits under the laws administered by 

7 the Secretary may access information re8 lated to Department of Veterans Affairs debt 

9 electronically. 

10 (iv) The improvement and clarification 

11 of Department communications relating to 

12 overpayments and debt collection, including 

13 letters and electronic correspondence and in14 cluding information relating to the most 

15 common reasons veterans incur debts to the 

16 United States. The Secretary shall develop 

17 such improvements and clarifications in 

18 consultation with veterans service organiza19 tions and other relevant nongovernmental 

20 organizations. 

21 (v) The development and implementa22 tion, by not later than October 1, 2022, of 

23 a mechanism by which veterans may update 

24 their dependency information electronically. 


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1 (B) A description of the current efforts and 

2 plans for improving the accuracy of payments to 

3 individuals entitled to benefits under the laws 

4 administered by the Secretary, including specific 

5 data matching agreements. 

6 (C) A description of steps to be taken to im7 prove the identification of underpayments to 

8 such individuals and to improve Department 

9 procedures and policies to ensure that such indi10 viduals who are underpaid receive adequate com11 pensation payments. 

12 (D) A list of actions completed, implemen13 tation steps, and timetables for each requirement 

14 described in subparagraphs (A) through (C). 

15 (E) A description of any new legislative au16 thority required to complete any such require17 ment. 

18 SEC. 3. PROHIBITION ON DEPARTMENT OF VETERANS AF19 FAIRS INTEREST AND ADMINISTRATIVE COST 

20 CHARGES FOR DEBTS RELATING TO CERTAIN 

21 BENEFITS PROGRAMS. 

22 (a) IN GENERAL.—Section 5315(a)(1) of title 38, 

23 United States Code, is amended— 


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1 (1) by striking ‘‘other than a loan’’ and all that 

2 follows through the semicolon and inserting ‘‘other 

3 than—’’; and 

4 (2) by adding at the end the following new sub5 paragraphs: 

6 ‘‘(A) a loan, loan-guaranty, or loan-insur7 ance program; 

8 ‘‘(B) a disability compensation program; 

9 ‘‘(C) a pension program; or 

10 ‘‘(D) an educational assistance program.’’. 

11 (b) EFFECTIVE DATE.—The amendments made by sub12 section (a) shall apply with respect to an indebtedness that 

13 occurs on or after the date of the enactment of this Act. 

14 SEC. 4. THRESHOLD FOR REPORTING DEBTS TO CONSUMER 

15 REPORTING AGENCIES. 

16 (a) IN GENERAL.—Chapter 53 of title 38, United 

17 States Code, is amended by adding after section 5319 the 

18 following new section: 

19 ‘‘§ 5320. Threshold for reporting debts to consumer re20 porting agencies 

21 ‘‘The Secretary shall prescribe regulations that estab22 lish the minimum amount of a claim or debt, arising from 

23 a benefit administered by the Under Secretary for Benefits 

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1 port to a consumer reporting agency under section 3711 

2 of title 31.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sections at 

4 the beginning of such chapter is amended by adding after 

5 the item relating to section 5319 the following new item: 

‘‘5320.Threshold for reporting debts to consumer reporting agencies.’’. 

6 (c) DEADLINE.—The Secretary of Veterans Affairs 

7 shall prescribe regulations under section 5320 of such title, 

8 as added by subsection (a), not later than 180 days after 

9 the date of the enactment of this Act. 

10 SEC. 5. EXTENSION OF WINDOW TO REQUEST RELIEF FROM 

11 RECOVERY OF DEBT ARISING UNDER LAWS 

12 ADMINISTERED BY THE SECRETARY OF VET13 ERANS AFFAIRS. 

14 Section 5302(a) of title 38, United States Code, is 

15 amended by striking ‘‘180 days’’ and inserting ‘‘one year’’. 

16 SEC. 6. REFORMS RELATING TO RECOVERY BY DEPART17 MENT OF VETERANS AFFAIRS OF AMOUNTS 

18 OWED BY VETERANS TO THE UNITED STATES. 

19 (a) ADMINISTRATIVE PROCESS FOR DISPUTE OF EX20 ISTENCE OR AMOUNT OF INDEBTEDNESS.— 

21 (1) IN GENERAL.—Section 5314 of title 38, 

22 United States Code, is amended— 

23 (A) by redesignating subsections (c) and (d) 

24 as subsections (d) and (e); and 


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1 (B) by inserting after subsection (b) the fol2 lowing new subsection (c): 

3 ‘‘(c)(1) The Secretary shall prescribe an administra4 tive process for the dispute of the existence or amount of 

5 an indebtedness subject to subsection (a). 

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

7 under paragraph (1) is adjudicated not later than 120 days 

8 after the dispute is filed. 

9 ‘‘(3) The Secretary may not submit to any debt col10 lector (as defined in section 803 of the Fair Debt Collection 

11 Practices Act (15 U.S.C. 1692a)) any debt pending adju12 dication under the process prescribed under paragraph (1). 

13 ‘‘(4) Notwithstanding any other provision of law, the 

14 Secretary may not deduct under subsection (a) any amount 

15 relating to an indebtedness while the existence or amount 

16 of such indebtedness is being— 

17 ‘‘(A) disputed under paragraph (1) of this sub18 section; or 

19 ‘‘(B) appealed. 

20 ‘‘(5) Nothing in this subsection shall be construed to 

21 prohibit a person from seeking relief from a court of com22 petent jurisdiction. 

23 ‘‘(6) Nothing in this subsection shall be construed to 

24 affect a dispute regarding a decision on a claim that is 

25 subject to section 5104C(a)(1) of this title.’’. 


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1 (2) EXISTING ADMINISTRATIVE PROCESS.—The 

2 Secretary of Veterans Affairs shall carry out sub3 section (c) of such section, as added by paragraph 

4 (1)(B), by improving the administrative process of the 

5 Department of Veterans Affairs for the dispute of the 

6 existing or amount of an indebtedness that was in ef7 fect on the day before the date of the enactment of this 

8 Act. 

9 (3) IMPROVEMENTS REGARDING DEPARTMENT

10 WEBSITE AND NOTICES.—In carrying out paragraph 

11 (2), the Secretary shall— 

12 (A) improve the website of the Department; 

13 and 

14 (B) ensure that such website and written 

15 notices sent to veterans about indebtedness de16 scribed in section 5314(a) of title 38, United 

17 States Code, contain all information veterans 

18 need to dispute such a indebtedness, including a 

19 description of— 

20 (i) the specific actions the veterans will 

21 need to take in order to dispute the indebt22 edness; 

23 (ii) the documentation that will be re24 quired for the dispute; and 


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1 (iii) how the documentation is to be 

2 submitted. 

3 (b) MINIMUM THRESHOLDS FOR AMOUNTS TO BE RE4 COVERED.—Subsection (a) of such section is amended— 

5 (1) by inserting ‘‘(1)’’ before ‘‘Subject to’’; and 

6 (2) by adding at the end the following new para7 graph: 

8 ‘‘(2) The Secretary may not deduct under paragraph 

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

10 that would be incurred by the Department to recover such 

11 amount would exceed the amount to be recovered.’’. 

12 (c) CONFORMING AMENDMENT.—Subsection (a)(1), as 

13 designated by subsection (b)(1), is amended by striking ‘‘to 

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

15 paragraph (2) of this subsection, subsections (b), (c), and 

16 (e) of this section,’’. 

17 SEC. 7. REMOVAL OF DEPENDENTS FROM AWARD OF COM18 PENSATION OR PENSION. 

19 The Secretary of Veterans Affairs shall ensure that— 

20 (1) a veteran may remove any dependent from 

21 an award of compensation or pension to the veteran 

22 using the eBenefits system of the Department of Vet23 erans Affairs, or a successor system; and 


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1 (2) such removal takes effect not later than 60 

2 days after the date on which the veteran makes such 

3 removal. 


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Calendar No. 539 

116TH CONGRESS 

2D SESSION S. 805 

A BILL 

To amend title 38, United States Code, to improve 

other purposes. erans with respect to such recovery, and for States, to improve the due process accorded vetother amounts owed by veterans to the United cover overpayments made by the Department and ity of the Secretary of Veterans Affairs to repartment of Veterans Affairs, to limit the authorthe processing of veterans benefits by the DeSEPTEMBER 15, 2020 

Reported with an amendment 


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