,,ii  #aafth ,,congress  #ast ,session  
,s4 #hje  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #ad1         
#bjai,mr4 ,tester 7for himself1 ,mr4    
,boozman1 ,mr4 ,brown1 ,mr4 ,blumenthal1
 ,ms4 ,stabenow1 ,ms4 ,harris1 ,ms4     
,warren1 ,mr4 ,wyden1 and ,mrs4         
,shaheen7 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 #bjai4 
#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 through means selected by   
the individual 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 inserting 7#a7 before
 ,subject to2  7,b7 in paragraph 7#a71  
as designated by subparagraph 7,a71 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,c7 by adding at the end
 the following new paragraph3  7#b7     
,notwithstanding any other provision of 
law1 the ,secretary may only deduct     
under paragraph 7#a7 an amount of the   
indebtedness of a veteran1 the estate of
 a veteran1 a spouse or child of a      
veteran who is deceased1 or a recipient 
of educational assistance under chapter 
#cj1 #ca1 #cb1 #cc1 #cd1 or #ce of this 
title if the indebtedness is a result of
 one or more of the following3  7,a7 ,an
 error made by or failure to report     
required information to the ,department 

by the veteran1 estate1 spouse1 child1  
or recipient of educational assistance1 
as the case may be4  7,b7 ,fraud        
perpetrated by the veteran1 estate1     
spouse1 child1 or recipient of          
educational assistance1 as the case may 
be4  7,c7 ,a misrepresentation made by  
the veteran1 estate1 spouse1 child1 or  
recipient of educational assistance1 as 
the case may be4  7,d7 ,in the case of a
 recipient of educational assistance    
under such chapters1 a reduction in or  
termination of pursuit of a program of  
education by the recipient4  7,e7 ,a    
failure described in section            
#ccai7;i77#b77;,a7 of this title4  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
 percent of such payment2 or  7ii7 such 
other percent of such payment as the    
,secretary and the person whose future  
payments are to be reduced under        
paragraph 7#a7 agree would not cause a  

hardship to the person 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 ,in the case of an indebtedness  
that was incurred as a result of an     
error or failure described in paragraph 
7#b77;,a71 the ,secretary may not deduct
 under paragraph 7#a7 any amount        
relating to such indebtedness after the 
date that is five years after the date  
on which the debt was incurred4  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--  
7,a7 disputed under subsection 7c72 or  
7,b7 appealed4  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     
7#g7 ,paragraphs 7#b7 through 7#f7 shall
 not apply to payments under chapter #ai
 of this title4  4  7#b7 ,due process   
7,a7 ,minimum period for notice         
,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;,a77ii72  2 and  7ii7 by       
striking paragraph 7#c7 and inserting   
the following new paragraphs3  7#c7 has 
notified such person about the proposed 
deductions by mailing a notice of intent
 letter1 which--  7,a7 is mailed to the 
person-- 7i7 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 ,secretary1 not later than #de days 
before making any of such deductions2   
and  7ii7 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 ,secretary1 
not later than #ij days before making   
any of such deductions2 and  7,b7       
includes detailed information about the 
indebtedness1 including1 in the case of 
an overpayment1 an itemized list of each
 overpayment and the specific reason for
 the overpayment4  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  7#d7 ,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 participation4
  7b7 ,limitation on authority ,to sue  
,to collect certain debts  7#a7 ,in     
general ,section #ecaf7;a7 of such title
 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 ,in the case of an
 indebtedness that was incurred as a    
result or an error or failure described 
in section #ecad7;a77#b77;,a7 of this   
title1 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 incurred4
  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 ,limitation on    
cooperation with other ,federal agencies
 ,to collect ,section #ecaf of such     
title is amended by adding at the end   
the following new subsection3  7d7 ,the 
,secretary may not provide any          
information or assistance to any other  
element of the ,federal ,government to  
recover1 whether by bringing suit in a  
court of competent jurisdiction1 by     
deducting amounts from future payments1 
or by other method1 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 title4  4  7d7  
,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  7e7    
,audits  7#a7 ,one-time 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  7#b7 ,annual audits ,section   
#ecad of such title1 as amended by      
subsection 7a71 is further amended by   
adding at the end the following new     
subsection3  7f7 ,not less frequently   
than once each year1 the ,secretary     
shall complete an audit of not less than
 #aj 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 errors4  4  7f7 ,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  7g7 ,coordination  
with other ,federal agencies  7#a7      
,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 event1 such as a
 change in work status1 incarceration1  
or change in marital status4  7#b7      
,quarterly reporting by ,secretary of   
,defense to ,secretary of ,veterans     
,affairs ,each quarter1 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 instruction1 training1 or  
other duties under section #bjf of title
 #cg1 ,united ,states ,code4