[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2073 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2073

To address fees erroneously collected by Department of Veterans Affairs 
               for housing loans, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 10, 2019

Mr. Boozman (for himself and Mr. Tester) introduced the following bill; 
which was read twice and referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
To address fees erroneously collected by Department of Veterans Affairs 
               for housing loans, and for other purposes.

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

SECTION 1. FEES ERRONEOUSLY COLLECTED BY DEPARTMENT OF VETERANS AFFAIRS 
              FOR HOUSING LOANS.

    (a) Findings.--Congress makes the following findings:
            (1) The Department of Veterans Affairs offers a Department-
        backed home loan for which veterans are generally required to 
        pay fees to defray the cost of administering the home loan.
            (2) Veterans are exempt from paying the fees if they are 
        entitled to receive disability compensation from the Department 
        of Veterans Affairs.
            (3) Between January 1, 2012, and December 31, 2017, 
        veterans paid fees of more than $286,000,000 in association 
        with Department-backed home loans despite being exempt from 
        such fees. Fees paid included $65,800,000 in fees that could 
        have been avoided.
            (4) Of those erroneously paid fees, $189,000,000 in fee 
        refunds are still due to veterans.
            (5) More than 70,000 veterans may have been affected by 
        these erroneously paid fees.
    (b) Plan To Identify Individuals Who Were Erroneously Charged 
Fees.--
            (1) Erroneous charges january 1, 2012, to december 31, 
        2017.--
                    (A) In general.--Not later than 90 days after the 
                date of the enactment of this Act, the Secretary of 
                Veterans Affairs shall submit to Congress a plan to 
                identify individuals described in subsection (c)(1) of 
                section 3729 of title 38, United States Code, from whom 
                a fee was collected under such section during the 
                period beginning on January 1, 2012, and ending on 
                December 31, 2017.
                    (B) Contents.--The plan submitted under paragraph 
                (1) shall include the following:
                            (i) The number of individuals who may be 
                        due a refund of the fee.
                            (ii) A timeline for the refunding of fees.
            (2) Erroneous charges before january 1, 2012.--
                    (A) In general.--Not later than 180 days after the 
                date of the enactment of this Act, the Secretary of 
                Veterans Affairs shall submit to Congress a plan to 
                identify individuals described in subsection (c)(1) of 
                section 3729 of title 38, United States Code, from whom 
                a fee was collected under such section before January 
                1, 2012.
                    (B) Contents.--The plan submitted under paragraph 
                (1) shall include the following:
                            (i) The number of individuals who may be 
                        due a refund of the fee.
                            (ii) A timeline for the refunding of fees.
    (c) Automated Refund Process.--
            (1) In general.--The Secretary shall develop an automated 
        process for refunding fees collected under section 3729 of 
        title 38, United States Code, from individuals described in 
        subsection (c)(1) of such section.
            (2) Prohibition.--For any individual identified under the 
        process developed under paragraph (1), the Secretary shall 
        process the refund without requiring further request.
    (d) Plan To Process Refunds.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary shall develop a plan to 
process refunds of fees that were collected under section 3729 of title 
38, United States Code, from individuals described in subsection (c)(1) 
of such section.
    (e) Annual Report on Refunds.--
            (1) In general.--Not less frequently than once each year, 
        the Secretary shall submit to Congress an annual report on 
        refunds of fees collected under section 3729 of title 38, 
        United States Code.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall include, for the period covered by the report:
                    (A) The number of fees collected under such section 
                that were refunded and applied to a home loan balance.
                    (B) The number of such refunds for which the 
                Secretary received documentation of the application of 
                a refund to a home loan balance.
    (f) Accuracy of Certificates of Eligibility.--
            (1) In general.--The Secretary shall update such policies 
        as may be necessary to ensure that certificates of eligibility 
        are accurate at the time they are used for the purposes of 
        determining eligibility for housing loans guaranteed, insured, 
        or made under chapter 37 of title 38, United States Code, and 
        for pursues of determining eligibility for exemption from the 
        collection of fees under section 3729 of such title.
            (2) Report.--Not later than 180 days after the date of the 
        enactment of this Act, the Secretary shall submit to Congress a 
        report on the solution developed under paragraph (1).
    (g) Manner of Refunds.--In the case of a fee that was erroneously 
collected under section 3729 of title 38, United States Code, from an 
individual described in subsection (c) of such section, the Secretary 
may refund the fee directly to the individual, notwithstanding any 
current loan balance of the individual or the manner in which the fee 
was originally collected.
    (h) Refunds Generally.--Section 3729(c) of title 38, United States 
Code, is amended by adding at the end the following new paragraph:
    ``(3)(A) The Secretary shall develop a process for determining 
whether a fee has been collected under this section from an individual 
described in paragraph (1).
    ``(B) If the Secretary determines that such a fee has been 
collected under this section from an individual described in paragraph 
(1), the Secretary shall pay to such individual an amount equal to the 
amount of the fee collected.
    ``(C) Notwithstanding any other provision of law, a payment under 
this paragraph shall not be subject to Federal, State, or other tax 
liability or reporting requirement.''.
    (i) Audit Plan.--
            (1) Plan required.--The Secretary shall develop a plan to 
        audit the Department on an annual basis to determine the rate 
        at which fees are erroneously collected under section 3729 of 
        title 38, United States Code.
            (2) Reports.--Not later than 60 days after the completion 
        of any audit conducted pursuant to the plan developed under 
        paragraph (1), the Secretary shall submit to Congress a report 
        on the findings of the Secretary with respect to the audit.
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