,,ii #aaeth ,,congress #b;d ,session ,s4 #bcda ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #be1 #bjah ,mr4 ,tester 7for himself1 ,mr4 ,brown1 and ,mr4 ,blumenthal7 introduced the following bill2 which was read twice and referred to the ,committee on ,veterans' ,affairs ,a ,,bill ,to amend title #ch1 ,united ,states ,code1 to improve the processing of veterans benefits by the ,department of ,veterans ,affairs1 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 ,states1 to improve the due process accorded veterans with respect to such recovery1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,veteran ,debt ,fairness ,act of #bjah4 #b4 ,improving processing of veterans benefits by ,department of ,veterans ,affairs 7a7 ,notification of debts incurred ,the ,secretary of ,veterans ,affairs shall make such changes to such information technology systems of the ,department of ,veterans ,affairs1 including the e,benefits system or successor system1 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 receive1 at the request of the person1 a notice from the ,department 7by electronic mail or other mechanism7 whenever such person incurs a debt to the ,united ,states by virtue of such participation4 7b7 ,updating dependent information ,the ,secretary shall make such changes to such information technology systems of the ,department1 including the e,benefits system or successor system1 as may be necessary so that whenever the ,secretary records in such systems information about a dependent of a person1 the person is able to review and revise such information4 7c7 ,tracking of metrics ,the ,secretary shall make such changes to such information technology systems of the ,department as may be necessary to track the following3 7#a7 ,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 payments4 7#b7 ,the average debt to the ,united ,states incurred by a person by virtue of a payment described in paragraph 7#a74 7#c7 ,the frequency by which applications for relief under section #ecjb7;a7 of title #ch1 ,united ,states ,code1 are approved and denied4 7#d7 ,such other metrics as the ,secretary considers appropriate4 #c4 ,reforms relating to recovery by ,department of ,veterans ,affairs of amounts owed by veterans to the ,united ,states 7a7 ,indebtedness offsets 7#a7 ,limitation on scope of authority ,subsection 7a7 of section #ecad of title #ch1 ,united ,states ,code1 is amended-- 7,a7 by striking to subsections 7b7 and 7d7 of this section and inserting to paragraphs 7#b7 through 7#f7 of this subsection1 subsections 7b7 and 7e7 of this section12 and 7,b7 by adding at the end the following new paragraph3 7#b7 ,the ,secretary may only deduct under paragraph 7#a7 an amount of the indebtedness of a veteran1 the estate of a veteran1 or a spouse or child of a veteran who is deceased if the indebtedness is a result of one or more of the following3 7,a7 ,an error made by the veteran1 estate1 spouse1 or child1 as the case may be4 7,b7 ,fraud perpetrated by the veteran1 estate1 spouse1 or child1 as the case may be4 7,c7 ,a misrepresentation made by the veteran1 estate1 spouse1 or child1 as the case may be4 7#c7 7,a7 ,the ,secretary may not deduct under paragraph 7#a7 from any payment made under chapter #aa or #ae of this title more than the lessor of-- 7i7 #be percent2 or 7ii7 such other percent as the ,secretary determines1 pursuant to a request made under subparagraph 7,b71 is the greatest percent that would not cause a hardship to the recipient of the payment4 7,b7 ,a person whose future payments are to be reduced under paragraph 7#a7 may request1 via the administrative process prescribed under subsection 7c71 the ,secretary make a determination under subparagraph 7,a77ii7 of this paragraph4 7#d7 ,the ,secretary may not deduct under paragraph 7#a7 any amount relating to an indebtedness that was incurred by a veteran more than five years previously4 7#e7 ,the ,secretary may not deduct under paragraph 7#a7 any amount relating to an indebtedness while the existence or amount of such indebtedness is being disputed under subsection 7c74 7#f7 ,the ,secretary may not deduct under paragraph 7#a7 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 recovered4 4 7#b7 ,due process 7,a7 ,minimum period for notice and secondary review ,subsection 7b7 of such section is amended-- 7i7 by amending paragraph 7#a7 to read as follows3 7#a7 has made reasonable efforts to notify such person of such person's right-- 7,a7 to dispute through prescribed administrative processes the existence or amount of such indebtedness2 7,b7 to request a waiver of such indebtedness under section #ecjb of this title2 and 7,c7 to request the ,secretary make a determination under subsection 7a77#c77;,a77ii74 2 7ii7 in paragraph 7#b71 by striking 2 and and inserting a semicolon2 and 7iii7 by striking paragraph 7#c7 and inserting the following new paragraphs3 7#c7 has notified such person1 not later than #ij days before making any of such deductions-- 7,a7 about the proposed deductions2 and 7,b7 detailed information about the indebtedness1 including1 in the case of an overpayment1 an itemized list of each overpayment and the specific reason for the overpayment2 and 7#d7 in any case in which the ,secretary determines the amount of indebtedness of a person exceeds #b1ejj1 the ,secretary completes a secondary review to ensure that the determination is accurate and the indebtedness is subject to offset under this section4 4 7,b7 ,adjudication of disputes 7i7 ,in general ,such section is amended-- 7,i7 by redesignating subsections 7c7 and 7d7 as subsections 7d7 and 7e72 and 7,,ii7 by inserting after subsection 7b7 the following new subsection 7c73 7c7 7#a7 ,the ,secretary shall prescribe an administrative process for-- 7,a7 the dispute of the existence or amount of an indebtedness subject to subsection 7a72 and 7,b7 making requests under paragraph 7#c77;,b7 of such subsection4 7#b7 ,the ,secretary shall ensure that each dispute under paragraph 7#a77;,a7 is adjudicated not later than #abj days after the dispute is filed4 7#c7 ,the ,secretary may not submit to any debt collector 7as defined in section #hjc of the ,fair ,debt ,collection ,practices ,act 7#ae ,u4,s4,c4 #afib;a77 any debt pending adjudication under the process prescribed under paragraph 7#a74 7#d7 ,nothing in this subsection shall be construed to prohibit a person from seeking relief from a court of competent jurisdiction4 4 7ii7 ,limitations on interest and fees charged during period of dispute ,section #ecae of such title is amended-- 7,i7 in subsection 7b77#a71 in the first sentence by striking or 7,b7 and inserting 7,b7 for any period during which the existence or amount of the indebtedness is being disputed under section #ecad7;c7 of this title1 or 7,c72 and 7,,ii7 in subsection 7c7-- 7aa7 by inserting 7#a7 before ,the administrative2 and 7bb7 by adding at the end the following new paragraph3 7#b7 ,no administrative costs may be charged under this section with respect to an indebtedness described in subsection 7a7 while the existence or amount of the indebtedness is being disputed under section #ecad7;c7 of this title4 4 7#c7 ,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 #ecad of such title on or after such date4 7b7 ,limitation on authority ,to sue ,to collect certain debts 7#a7 ,in general ,section #ecaf7;a7 of title #ch1 ,united ,states1 is amended-- 7,a7 in paragraph 7#a71 by striking 7#b7 and 7#c7 and inserting 7#b71 7#c71 and 7#d72 7,b7 by redesignating paragraph 7#c7 as paragraph 7#d72 and 7,c7 by inserting after paragraph 7#b7 the following new paragraph 7#c73 7#c7 ,no suit may be filed under this section to recover any indebtedness incurred more than five years previously4 4 7#b7 ,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 #ecaf of such title on or after such date4 7c7 ,repair of credit 7#a7 ,in general ,chapter #ec of such title is amended by adding at the end the following new section3 #ecbj4 ,correction of erroneous information submitted to consumer reporting agencies 7a7 ,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 ,secretary1 the ,secretary shall-- 7#a7 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 person2 and 7#b7 transmit to the consumer reporting agency such information as the consumer reporting agency may require to take such appropriate actions4 7b7 ,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 ,secretary1 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 person40 7c7 ,notice ,not later than #fj days after the date on which the ,secretary issues an instruction under subsection 7a77#a7 or 7b7 with respect to a person1 the ,secretary shall notify the person that the ,secretary issued such instruction4 7d7 ,definitions ,in this section3 7#a7 ,the terms consumer report and consumer reporting agency have the meanings given such terms in section #fjc of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;a74 7#b7 ,the term debt collector has the meaning given such term in section #hjc of the ,fair ,debt ,collection ,practices ,act 7#ae ,u4,s4,c4 #afib;a74 4 7#b7 ,clerical amendment ,the table of sections at the beginning of chapter #ec of such title is amended by adding at the end the following new item3 #ecbj4 ,correction of erroneous information submitted to consumer reporting agencies4 4 7d7 ,audit ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,veterans ,affairs shall complete an audit to determine the following3 7#a7 ,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 entitled4 7#b7 ,whether and to what degree vacant positions in the ,veterans ,benefits ,administration affect such errors4 7e7 ,plan ,not later than #ahj days after the date of the enactment of this ,act1 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 7d77#a7 are not the result of communication or absence of communication between information technology systems4