[Congressional Record Volume 166, Number 165 (Wednesday, September 23, 2020)]
[House]
[Pages H4752-H4754]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    STOPPING HARM AND IMPLEMENTING ENHANCED LEAD-TIME FOR DEBTS FOR 
                              VETERANS ACT

  Mr. TAKANO. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 5245) to amend title 38, United States Code, to provide for 
a bar on the recovery of certain payments or overpayments made by the 
Department of Veterans Affairs by reason of delays in processing of 
certain information, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5245

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. PROHIBITION OF DEBT ARISING FROM OVERPAYMENT DUE TO 
                   DELAY IN PROCESSING BY THE DEPARTMENT OF 
                   VETERANS AFFAIRS.

       (a) Bar to Recovery.--

[[Page H4753]]

       (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 Under Secretary for Benefits; 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.--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. Such notice shall include an explanation of the 
     right of the individual to dispute the overpayment or 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.--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. 
     Such report shall include each of the following:
       (1) The plan of the Secretary to carry out each of the 
     following:
       (A) 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.
       (B) 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.
       (C) 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.
       (D) The improvement and clarification of Department 
     communications relating to overpayments and debt collection, 
     including letters and electronic correspondence. The 
     Secretary shall develop such improvements and clarifications 
     in consultation with veterans service organizations and other 
     relevant non-governmental organizations.
       (E) The development and implementation, by not later than 
     October 1, 2022, of a mechanism by which veterans may update 
     their dependency information electronically.
       (2) 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.
       (3) 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.
       (4) A list of actions completed, implementation steps, and 
     timetables for each requirement described in paragraphs (1) 
     through (3).
       (5) A description of any new legislative authority required 
     to complete any such requirement.

     SEC. 3. 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. 4. 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.

     SEC. 5. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Takano) and the gentleman from Tennessee (Mr. David P. 
Roe) each will control 20 minutes.
  The Chair recognizes the gentleman from California.


                             General Leave

  Mr. TAKANO. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and to insert extraneous material on H.R. 5245, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. TAKANO. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I rise in support of H.R. 5245, as amended, the 
Stopping Harm and Implementing Enhanced Lead-Time for Debts for 
Veterans Act, or the SHIELD for Veterans Act. It would create important 
steps to improve how VA handles overpayments made to veterans. The 
Department's process for collecting overpayments that it makes must be 
fair and reasonable and consider the potential hardships when an error 
is discovered. This legislation does just that.
  Further, the legislation would make overpayments less common by 
improving the information available to beneficiaries and modernize how 
veterans can provide updates to VA on their eligibility and status.
  The SHIELD Act was sponsored by Chairman Chris Pappas, who leads our 
Oversight and Investigations Subcommittee. The bill was developed based 
on hearings Chairman Pappas held during the session. The subcommittee 
also conducted extensive oversight of VA collections.
  Finally, the legislation takes into account the experiences and input 
of veterans service organizations that help veterans navigate what is 
an overly complex current collections process that leaves many 
understandably frustrated.
  I also appreciate the bipartisan nature of this bill. Our oversight 
was conducted with the minority that also offered improvements to the 
bill, which were incorporated into the current language.
  I support this bill, and I urge my colleagues to do the same. I thank 
Mr. Pappas for sponsoring this important legislation and urge my 
colleagues to support H.R. 5245, as amended.
  Madam Speaker, I reserve the balance of my time.
  Mr. DAVID P. ROE of Tennessee. Madam Speaker, I yield myself such 
time as I may consume.
  Madam Speaker, I rise today in support of H.R. 5245, as amended, the 
SHIELD for Veterans Act.
  This bill would prohibit the Department of Veterans Affairs from 
collecting on debts from the Veterans Benefits Administration that 
arise out of VA's failure to process changes in a veteran's entitlement 
to benefits within certain timeliness standards.
  Veterans should not face financial hardships due to delays or errors 
made by VA, nor should Congress accept that forgiving debts is a long-
term solution. Rather, we need to strive to eliminate the creation of 
the debt in the first place.
  H.R. 5245 would do that by addressing one of the major root causes of 
debt.
  Certainly, veterans can add dependents to their compensation or 
pension award using VA's eBenefits online tool, and that change is 
effective immediately. However, VA does not allow for the immediate 
removal of dependents using that same tool.

[[Page H4754]]

  Because the removal of a veteran dependent requires a manual review, 
a debt is often created because VA's lengthy review process results in 
overpayments to veterans that, by law, VA must attempt to recoup.
  I thank my good friend and fellow veteran, the ranking member of the 
Subcommittee on Disability Assistance and Memorial Affairs, Congressman 
  Mike Bost from Illinois, for amending this bill while it was being 
considered in committee to require VA to establish a process to allow a 
veteran to remove a dependent through eBenefits as seamlessly as they 
add a dependent. This would remove the bureaucratic and archaic hurdles 
of the current paper-based process and reduce the creation of debts.
  The remainder of the bill would streamline and improve VBA's debt 
collection process, so veterans have a transparent understanding of 
their rights and how to dispute debts when they do occur.
  I thank the chairman and ranking member of the Subcommittee on 
Oversight and Investigation, Congressman Chris Pappas from New 
Hampshire and General Jack Bergman from Michigan, for their work on 
this bill. I also thank Chairman Pappas for amending the bill that we 
reported out of the committee to address late-identified CBO scoring 
issues.
  I believe that our bipartisan efforts produced a policy that is good 
for veterans and taxpayers alike, and I encourage my colleagues to join 
me in supporting this bill today.
  Madam Speaker, I reserve the balance of my time.
  Mr. TAKANO. Madam Speaker, I yield 5 minutes to the gentleman from 
New Hampshire (Mr. Pappas), my good friend, the chairman of the 
Subcommittee on Oversight and Investigations, and also the author of 
this important piece of legislation.
  Mr. PAPPAS. Madam Speaker, I thank the gentleman for yielding.
  Madam Speaker, I thank Chairman Takano and Ranking Member Roe for 
their words, as well as for their efforts to help us get to yes on this 
important piece of legislation.
  I rise in support of H.R. 5245, a bill I introduced along with my 
colleague, Congressman Max Rose, to fix some major problems directly 
affecting our veterans.
  Last year, I heard from one of my constituents, New Hampshire veteran 
Jeff Varney, who contacted my office for assistance. Jeff, like 
thousands of other veterans across the country, is facing tremendous 
financial hardship due to VA errors.
  Jeff was in disbelief when the VA informed him that he needed to 
repay years of benefit overpayments because of an apparent error that 
VA made decades ago.

  So after a lifetime of service, and through no fault of his own, Jeff 
was told he is on the hook for more than $11,000, even though VA 
produced no accounting of how these debts were accrued.
  Unfortunately, Jeff is not alone in this experience, and too many of 
our veterans are badly surprised when they receive letters saying they 
owe the VA money. Sometimes these debts reach thousands of dollars. 
During the hearings held by our Oversight and Investigations 
Subcommittee, we heard from veterans service organizations about the 
pain and hardship that these surprises may bring.
  Last fiscal year, the VA collected $1.6 billion in debts from 
veterans. Sometimes these debts result from mistakes in disability 
payouts, changes in eligibility, or simple accounting errors that place 
an undue, unexpected financial burden on our veterans.
  It is long past the time to clean this issue up. That is why today I 
am asking my colleagues to support the SHIELD for Veterans Act, which 
reforms VA debt collection processes and ensures we are making good on 
the promises we have made to our veterans.
  The SHIELD Act prevents VA from collecting overpayments that came as 
a result of their own delays in processing and requires the VA to 
provide our veterans notice of an overpayment and their plan to collect 
it. It also requires VA to notify veterans of their ability to dispute 
the overpayment or request a waiver.
  Under this bill, VA will issue a report to Congress on a plan to 
improve communications with our veterans on the debt issue.
  The last thing that my constituent needs, and other constituents 
need, is to be hounded by debt collectors, especially if they have done 
everything right.
  This is a bipartisan, commonsense bill, and I really want to thank 
the majority and minority staff for their work. I thank my ranking 
member, General Bergman, as well as Congressman Bost, for their 
contributions to helping make this bill better.
  It is simply unacceptable that VA's mistakes or inefficiencies are 
going to hurt the men and women that they are supposed to serve
  Madam Speaker, I urge my colleagues to support this legislation.
  Mr. DAVID P. ROE of Tennessee. Madam Speaker, I encourage my 
colleagues to support this commonsense bill. It is one of the most 
common things we hear in our office, about an outrageous debt that a 
veteran owes back that they didn't know they owed because of a 
bureaucratic snafu. We have all heard these cases.
  I thank my colleagues for bringing this up. We should have done this 
years ago.
  Madam Speaker, I encourage my colleagues to support this bill, and I 
yield back the balance of my time.
  Mr. TAKANO. Madam Speaker, I, too, urge passage of this commonsense 
solution. I very much also appreciate the bipartisan agreement that we 
have reached that this is, indeed, a problem we should have fixed many 
years ago.
  Madam Speaker, I urge my colleagues to join me in passing H.R. 5245, 
as amended, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Takano) that the House suspend the rules 
and pass the bill, H.R. 5245, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________