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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 805 Reported in Senate (RS)]

<DOC>

                                                       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 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Veteran Debt Fairness Act 
of 2019''.</DELETED>

<DELETED>SEC. 2. IMPROVING PROCESSING OF VETERANS BENEFITS BY 
              DEPARTMENT OF VETERANS AFFAIRS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) The average debt to the United States incurred 
        by a person by virtue of a payment described in paragraph 
        (1).</DELETED>
        <DELETED>    (3) The frequency by which applications for relief 
        under section 5302(a) of title 38, United States Code, are 
        approved and denied.</DELETED>
        <DELETED>    (4) Such other metrics as the Secretary considers 
        appropriate.</DELETED>

<DELETED>SEC. 3. REFORMS RELATING TO RECOVERY BY DEPARTMENT OF VETERANS 
              AFFAIRS OF AMOUNTS OWED BY VETERANS TO THE UNITED 
              STATES.</DELETED>

<DELETED>    (a) Indebtedness Offsets.--</DELETED>
        <DELETED>    (1) Limitation on scope of authority.--Subsection 
        (a) of section 5314 of title 38, United States Code, is 
        amended--</DELETED>
                <DELETED>    (A) by inserting ``(1)'' before ``Subject 
                to'';</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (C) by adding at the end the following new 
                paragraph:</DELETED>
<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(B) Fraud perpetrated by the veteran, estate, 
        spouse, child, or recipient of educational assistance, as the 
        case may be.</DELETED>
        <DELETED>    ``(C) A misrepresentation made by the veteran, 
        estate, spouse, child, or recipient of educational assistance, 
        as the case may be.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(E) A failure described in section 3319(i)(2)(A) 
        of this title.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(i) 25 percent of such payment; or</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(A) disputed under subsection (c); or</DELETED>
        <DELETED>    ``(B) appealed.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(7) Paragraphs (2) through (6) shall not apply to 
payments under chapter 19 of this title.''.</DELETED>
        <DELETED>    (2) Due process.--</DELETED>
                <DELETED>    (A) Minimum period for notice.--Subsection 
                (b) of such section is amended--</DELETED>
                        <DELETED>    (i) by amending paragraph (1) to 
                        read as follows:</DELETED>
        <DELETED>    ``(1) has made reasonable efforts to notify such 
        person of such person's right--</DELETED>
                <DELETED>    ``(A) to dispute through prescribed 
                administrative processes the existence or amount of 
                such indebtedness;</DELETED>
                <DELETED>    ``(B) to request a waiver of such 
                indebtedness under section 5302 of this title; 
                and</DELETED>
                <DELETED>    ``(C) to request the Secretary make a 
                determination under subsection (a)(3)(A)(ii);''; 
                and</DELETED>
                        <DELETED>    (ii) by striking paragraph (3) and 
                        inserting the following new 
                        paragraphs:</DELETED>
        <DELETED>    ``(3) has notified such person about the proposed 
        deductions by mailing a notice of intent letter, which--
        </DELETED>
                <DELETED>    ``(A) is mailed to the person--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.''.</DELETED>
                <DELETED>    (B) Adjudication of disputes.--</DELETED>
                        <DELETED>    (i) In general.--Such section is 
                        amended--</DELETED>
                                <DELETED>    (I) by redesignating 
                                subsections (c) and (d) as subsections 
                                (d) and (e); and</DELETED>
                                <DELETED>    (II) by inserting after 
                                subsection (b) the following new 
                                subsection (c):</DELETED>
<DELETED>    ``(c)(1) The Secretary shall prescribe an administrative 
process for--</DELETED>
        <DELETED>    ``(A) the dispute of the existence or amount of an 
        indebtedness subject to subsection (a); and</DELETED>
        <DELETED>    ``(B) making requests under paragraph (3)(B) of 
        such subsection.</DELETED>
<DELETED>    ``(2) The Secretary shall ensure that each dispute under 
paragraph (1)(A) is adjudicated not later than 120 days after the 
dispute is filed.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(4) Nothing in this subsection shall be construed to 
prohibit a person from seeking relief from a court of competent 
jurisdiction.''.</DELETED>
                        <DELETED>    (ii) Limitations on interest and 
                        fees charged during period of dispute.--Section 
                        5315 of such title is amended--</DELETED>
                                <DELETED>    (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</DELETED>
                                <DELETED>    (II) in subsection (c)--
                                </DELETED>
                                        <DELETED>    (aa) by inserting 
                                        ``(1)'' before ``The 
                                        administrative''; and</DELETED>
                                        <DELETED>    (bb) by adding at 
                                        the end the following new 
                                        paragraph:</DELETED>
<DELETED>    ``(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.''.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Limitation on Authority To Sue To Collect Certain 
Debts.--</DELETED>
        <DELETED>    (1) In general.--Section 5316(a) of such title is 
        amended--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking ``(2) 
                and (3)'' and inserting ``(2), (3), and 
                (4)'';</DELETED>
                <DELETED>    (B) by redesignating paragraph (3) as 
                paragraph (4); and</DELETED>
                <DELETED>    (C) by inserting after paragraph (2) the 
                following new paragraph (3):</DELETED>
<DELETED>    ``(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.''.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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:</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (d) Repair of Credit.--</DELETED>
        <DELETED>    (1) In general.--Chapter 53 of such title is 
        amended by adding at the end the following new 
        section:</DELETED>
<DELETED>``Sec. 5320. Correction of erroneous information submitted to 
              consumer reporting agencies</DELETED>
<DELETED>    ``(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--
</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(2) transmit to the consumer reporting agency 
        such information as the consumer reporting agency may require 
        to take such appropriate actions.</DELETED>
<DELETED>    ``(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.''</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Definitions.--In this section:</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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).''.</DELETED>
        <DELETED>    (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:</DELETED>

<DELETED>``5320. Correction of erroneous information submitted to 
                            consumer reporting agencies.''.
<DELETED>    (e) Audits.--</DELETED>
        <DELETED>    (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:</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (B) Whether and to what degree vacant 
                positions in the Veterans Benefits Administration 
                affect such errors.</DELETED>
        <DELETED>    (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:</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (g) Coordination With Other Federal Agencies.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stopping Harm and Implementing 
Enhanced Lead-time for Debts for Veterans Act of 2020'' or the ``SHIELD 
for Veterans Act of 2020''.

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.--No individual may incur a debt to the United 
States that--
            ``(1) arises from any program or benefit administered by 
        the Secretary; and
            ``(2) 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.
    ``(b) Notice to Beneficiary.--(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.--The Secretary may not take any action 
under section 3711 of title 31 regarding an overpayment described in a 
notice under subsection (b) until the date that is 90 days after the 
date the Secretary issues such notice.''.
            (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 veterans incur debts to the 
                        United States. The Secretary shall develop such 
                        improvements and clarifications in consultation 
                        with veterans service organizations and other 
                        relevant nongovernmental organizations.
                            (v) The development and implementation, by 
                        not later than October 1, 2022, of a mechanism 
                        by which veterans may update their dependency 
                        information electronically.
                    (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. THRESHOLD FOR REPORTING DEBTS TO CONSUMER REPORTING AGENCIES.

    (a) In General.--Chapter 53 of title 38, United States Code, is 
amended by adding after section 5319 the following new section:
``Sec. 5320. Threshold for reporting debts to consumer reporting 
              agencies
    ``The Secretary shall prescribe regulations that establish the 
minimum amount of a claim or debt, arising from a benefit administered 
by the Under Secretary for Benefits or Under Secretary for Health, that 
the Secretary will report to a consumer reporting agency under section 
3711 of title 31.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
5319 the following new item:

``5320.Threshold for reporting debts to consumer reporting agencies.''.
    (c) Deadline.--The Secretary of Veterans Affairs shall prescribe 
regulations under section 5320 of such title, as added by subsection 
(a), not later than 180 days after the date of the enactment of this 
Act.

SEC. 5. 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. 6. REFORMS RELATING TO RECOVERY BY DEPARTMENT OF VETERANS AFFAIRS 
              OF AMOUNTS OWED BY VETERANS TO THE UNITED STATES.

    (a) Administrative Process for Dispute of Existence or Amount of 
Indebtedness.--
            (1) In general.--Section 5314 of title 38, United States 
        Code, is amended--
                    (A) by redesignating subsections (c) and (d) as 
                subsections (d) and (e); and
                    (B) by inserting after subsection (b) the following 
                new subsection (c):
    ``(c)(1) The Secretary shall prescribe an administrative process 
for the dispute of the existence or amount of an indebtedness subject 
to subsection (a).
    ``(2) The Secretary shall ensure that each dispute under paragraph 
(1) 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) Notwithstanding any other provision of law, the Secretary may 
not deduct under subsection (a) any amount relating to an indebtedness 
while the existence or amount of such indebtedness is being--
            ``(A) disputed under paragraph (1) of this subsection; or
            ``(B) appealed.
    ``(5) Nothing in this subsection shall be construed to prohibit a 
person from seeking relief from a court of competent jurisdiction.
    ``(6) Nothing in this subsection shall be construed to affect a 
dispute regarding a decision on a claim that is subject to section 
5104C(a)(1) of this title.''.
            (2) Existing administrative process.--The Secretary of 
        Veterans Affairs shall carry out subsection (c) of such 
        section, as added by paragraph (1)(B), 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 regarding 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 veterans about indebtedness described in 
                section 5314(a) of title 38, United States Code, 
                contain all information veterans need to dispute such a 
                indebtedness, including a description of--
                            (i) the specific actions the veterans 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.
    (b) Minimum Thresholds for Amounts to Be Recovered.--Subsection (a) 
of such section 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 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.''.
    (c) Conforming Amendment.--Subsection (a)(1), as designated by 
subsection (b)(1), is amended by striking ``to subsections (b) and (d) 
of this section'' and inserting ``to paragraph (2) of this subsection, 
subsections (b), (c), and (e) of this section,''.

SEC. 7. REMOVAL OF DEPENDENTS FROM AWARD OF COMPENSATION OR PENSION.

    The Secretary of Veterans Affairs shall ensure that--
            (1) a veteran may remove any dependent from an award of 
        compensation or pension to the veteran using the eBenefits 
        system of the Department of Veterans Affairs, or a successor 
        system; and
            (2) such removal takes effect not later than 60 days after 
        the date on which the veteran makes such removal.
                                                       Calendar No. 539

116th CONGRESS

  2d Session

                                 S. 805

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           September 15, 2020

                       Reported with an amendment
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