[House Report 115-397]
[From the U.S. Government Publishing Office]


115th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                     {      115-397

======================================================================



 
                 VETERANS FAIR DEBT NOTICE ACT OF 2017

                                _______
                                

November 7, 2017.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Roe of Tennessee, from the Committee on Veterans' Affairs, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3705]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 3705) to direct the Secretary of Veterans 
Affairs to require the use of certified mail and plain language 
in certain debt collection activities, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     3
Hearings.........................................................     4
Subcommittee Consideration.......................................     4
Committee Consideration..........................................     4
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
Statement of General Performance Goals and Objectives............     5
New Budget Authority, Entitlement Authority, and Tax Expenditures     5
Earmarks and Tax and Tariff Benefits.............................     5
Committee Cost Estimate..........................................     6
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     7
Constitutional Authority Statement...............................     7
Applicability to Legislative Branch..............................     7
Statement on Duplication of Federal Programs.....................     7
Disclosure of Directed Rulemaking................................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill as Reported.............     8

                               AMENDMENT

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Veterans Fair Debt Notice Act of 
2017''.

SEC. 2. DEPARTMENT OF VETERANS AFFAIRS NOTICE RELATING TO DEBT 
                    COLLECTION ACTIVITIES.

  (a) Debt Notification Letters.--The Secretary of Veterans Affairs 
shall collaborate with veterans service organizations to write a 
standard letter to be provided to individuals who the Secretary 
determines owe debts to the Department of Veterans Affairs. Such letter 
shall be written in plain language and shall include a notice of the 
debt and a clear explanation of--
          (1) why the individual owes money to the Department of 
        Veterans Affairs; and
          (2) the options available to the individual.
  (b) Delivery of Letters.--The Secretary shall develop a method by 
which individuals may elect to receive debt notification letters by 
electronic means and shall ensure, to the extent practicable, that the 
letter developed under subsection (a) is delivered to intended 
recipients who have made such an election by both standard mail and by 
electronic means and to intended recipients who have not made such an 
election only by standard mail.
  (c) Notice to Congress.--
          (1) Notice of completion.--Upon completion of the letter 
        required under subsection (a), the Secretary shall submit to 
        Congress notice of the completion of the letter.
          (2) Progress reports.--If the Secretary has not submitted the 
        notice required by paragraph (1) by the date that is 90 days 
        after the date of the enactment of this Act, the Secretary 
        shall--
                  (A) submit to Congress a report describing the 
                progress of the Secretary toward implementing 
                subsection (a) and an explanation for why the letter 
                has not been completed; and
                  (B) every 30 days thereafter until the submittal of 
                the notice required by paragraph (1), submit to 
                Congress an update to the report under subparagraph (A) 
                that includes an additional explanation for the failure 
                to complete the letter.
  (d) Study; Report.--
          (1) Study.--The Secretary of Veterans Affairs shall conduct a 
        study on the process by which the Department of Veterans 
        Affairs notifies veterans of debt collection efforts. Such 
        study shall include--
                  (A) an analysis of the scope of the problem of 
                veterans not receiving debt collection notices;
                  (B) a description of any non-legislative actions the 
                Secretary could take to reduce the number of incorrect 
                or unknown addresses of veterans in the databases of 
                the Department and a timeline for adopting such 
                actions; and
                  (C) an estimate of the costs associated with sending 
                debt collection notices by certified mail.
          (2) Report.--Not later than 12 months after the date of the 
        enactment of this Act, the Secretary shall submit to Congress a 
        report on the study conducted under paragraph (1).

                          PURPOSE AND SUMMARY

    H.R. 3705, as amended, the Veterans Fair Debt Notice Act of 
2017, would help ensure that beneficiaries who may have 
received an overpayment from the Department of Veterans Affairs 
(VA), understand why VA believes the individual may owe money 
to the Department. Additionally, the bill would require VA to 
work with veterans service organizations to develop new initial 
demand and notification letters that describe, in plain 
language, why the Department believes the beneficiary owes 
money and the steps the beneficiary can take to dispute or 
mitigate the debt. H.R. 3705, as amended, would require VA to 
notify Congress of the completion of the development of the new 
debt notification letter. If the development of such letter is 
not final within 90 days of the date of enactment of this Act, 
the bill mandates that VA submit a report describing the 
progress in developing this letter and an explanation as to why 
the letter has not been completed. VA shall also provide an 
update on the progress in developing this letter every 30 days 
thereafter until the letter is completed.
    H.R. 3705, as amended, would also require VA to study the 
process by which the Department notifies veterans of debt 
collection efforts. This study would include the analysis of 
the scope of the problem of veterans not receiving debt 
collection notices, a description of any non-legislative 
actions VA can take to reduce the number of incorrect or 
unknown addresses in VA's databases, a timeline for adopting 
such actions, and an estimate of the costs associated with 
sending debt collection notices by certified mail. VA shall 
submit a report to Congress on such study within one year of 
the date of enactment.

                  BACKGROUND AND NEED FOR LEGISLATION

    When VA determines that a beneficiary may owe money to the 
Department, VA refers the case to the Debt Management Center 
(DMC). The DMC is an organization within the Office of 
Management that provides collection services to internal VA 
organizations, including the Veterans Benefits Administration 
(VBA). After receiving notice of the alleged debt, DMC performs 
standard debt collection activities, including sending 
notification letters of indebtedness. Such letters notify 
alleged debtors of their rights and obligations and how the 
alleged debtors may establish repayment agreements.
    During the September 13, 2017 Subcommittee on Disability 
Assistance and Memorial Affairs legislative hearing, 
representatives of The American Legion, the Disabled American 
Veterans, the Paralyzed Veterans of America, the Tragedy 
Assistance Program for Survivors, and the Veterans of Foreign 
Wars of the United States testified that veterans sometimes do 
not receive the debt notification because VBA does not have the 
correct address for the beneficiary on file.
    If the veteran beneficiary does not receive the initial 
notice of debt, such individual may miss important deadlines. 
For example, VA will suspend collection actions if the 
beneficiary responds to VA and requests a waiver within 30 days 
of the date of the debt notification letter.
    Furthermore, the representatives from the veterans service 
organizations testified during the September 13, 2017 
Subcommittee on Disability Assistance and Memorial Affairs 
legislative hearing that VA's current debt notification letters 
are not clear. As a result, the veterans who receive these 
letters are often confused about why VA believes the individual 
owes the Department money. Moreover, according to the 
representatives from the veterans service organizations, many 
veteran beneficiaries do not understand the steps they can take 
to dispute the debt, reduce the amount of the debt, or 
establish a repayment plan.
    H.R. 3705, as amended, would assist veterans by requiring 
VA to work with veterans service organizations to develop new 
notification letters that clearly explain why such alleged debt 
was created, and the steps the veteran can take to dispute or 
mitigate the debt. This legislation would also require VA to 
research and report to Congress on the number of veterans who 
do not receive debt notification letters, options VA can adopt 
to reduce the number of notices sent to incorrect addresses, 
and a timeline for adopting such options. The report would 
require that VA provide an estimate cost involved in sending 
debt collection letters via certified mail.

                                HEARINGS

    On September 13, 2017, the Committee on Veterans' Affairs, 
Subcommittee on Disability Assistance and Memorial Affairs held 
a legislative hearing on H.R. 3705.
          The Honorable David Rouzer, U.S. House of 
        Representatives; the Honorable Steve Stivers, U.S. 
        House of Representatives; the Honorable Joyce Beatty, 
        U.S. House of Representatives; the Honorable Matt 
        Cartwright, U.S. House of Representatives; the 
        Honorable Jim Banks, U.S. House of Representatives; the 
        Honorable Chellie Pingree, U.S. House of 
        Representatives; Mr. Matthew T. Sullivan, Deputy Under 
        Secretary for Finance and Planning and Chief Financial 
        Officer, National Cemetery Administration, U. S. 
        Department of Veterans Affairs; accompanied by Ms. 
        Roberta Lowe, Director, Office of Internal Controls, 
        Acting Director, Debt Management Center, Office of 
        Management, U. S. Department of Veterans Affairs; and 
        Ms. Cheryl Rawls, Director, Pension & Fiduciary 
        Service, Veterans Benefits Administration, U. S. 
        Department of Veterans Affairs; Ms. Elizabeth H. Curda, 
        Director, Education, Workforce, and Income Security 
        Team, U.S. Government Accountability Office; Mr. Alex 
        Zhang, Assistant Director, National Veterans Affairs 
        and Rehabilitation Division, The American Legion; Mr. 
        LeRoy Acosta, Assistant National Legislative Director, 
        Disabled American Veterans; Mr. Blake Ortner, Deputy 
        Government Relations Director, Paralyzed Veterans of 
        America; Ms. Kathleen Moakler, Director, Survivor 
        Advocacy, Tragedy Assistance Program for Survivors; 
        and, Mr. John Towles, Deputy Director, National 
        Legislative Service, Veterans of Foreign Wars of the 
        United States.

                       SUBCOMMITTEE CONSIDERATION

    H.R. 3705 was not considered before the Subcommittee.

                        COMMITTEE CONSIDERATION

    On November 2, 2017, the Full Committee met in an open 
markup session, a quorum being present, and ordered H.R. 3705, 
as amended, favorably reported to the House of Representatives 
by voice vote. During consideration of the bill, the following 
amendment to H.R. 3705, was considered and agreed to by voice 
vote:
          An amendment in the nature of a substitute offered by 
        Ms. Esty of Connecticut that would delete the 
        requirement that VA use certified mail in the initial 
        debt demand letter and that veterans use certified mail 
        to request a waiver of the debt. The amendment in the 
        nature of a substitute would require VA to work with 
        veterans service organizations to develop new 
        notification letters that, in plain language, clearly 
        explain why such alleged debt was created, and the 
        steps the veteran can take to dispute or mitigate the 
        debt. The amendment in the nature of a substitute would 
        mandate that VA provide a report to Congress when the 
        development of such letter is complete. If this letter 
        is not complete within 90 days of the date of 
        enactment, VA shall notify Congress of its progress in 
        developing such letter and explaining why the letter is 
        not yet complete. Furthermore, VA would be required to 
        update Congress on its progress in completing 
        development of such letter every 30 days until the 
        letter is complete. The amendment in the nature of a 
        substitute would also require VA to research the number 
        of veterans who do not receive debt notification 
        letters and provide a report to Congress detailing the 
        steps VA can adopt to reduce the number of notices sent 
        to incorrect addresses and provide a timeline for 
        adopting such options. The report would also include an 
        estimated cost of sending debt collection letters via 
        certified mail.

                            COMMITTEE VOTES

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, there were no recorded votes 
taken on amendments or in connection with ordering H.R. 3705, 
as amended, reported to the House. A motion by Ranking Member 
Timothy J. Walz of Minnesota to favorably report H.R. 3705, as 
amended, to the House of Representatives was agreed to by voice 
vote.

                      COMMITTEE OVERSIGHT FINDINGS

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are to assist veterans who may have 
received an overpayment from the Department of Veterans Affairs 
understand why VA believes the individual may owe money to the 
Department.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                  EARMARKS AND TAX AND TARIFF BENEFITS

    H.R. 3705, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        COMMITTEE COST ESTIMATE

    The Committee adopts as its own the cost estimate on H.R. 
3705, as amended, prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
for H.R. 3705, as amended, provided by the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 6, 2017.
Hon. Phil Roe, M.D.,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3705, the Veterans 
Fair Debt Notice Act of 2017.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Logan Smith.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 3705--Veterans Fair Debt Notice Act of 2017

    H.R. 3705 would require the Department of Veterans Affairs 
(VA) to collaborate with veterans services organizations to 
develop a standard letter to send to veterans who owe debts to 
VA. Such letters would be delivered by standard mail unless 
recipients chose electronic delivery. Under the bill, VA would 
have one year to report to the Congress on the department's 
processes for notifying veterans of debt collection efforts.
    Based on an analysis of information from VA and the cost of 
similar reporting efforts, CBO estimates that the cost of 
developing the standard letter and conducting the study would 
be insignificant; any such spending would be subject to the 
availability of appropriations.
    Enacting H.R. 3705 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 3705 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2028.
    H.R. 3705 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Logan Smith. The 
estimate was approved by H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R. 3705, as amended, prepared by the 
Director of the Congressional Budget Office pursuant to section 
423 of the Unfunded Mandates Reform Act.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
3705, as amended.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Pursuant to Article I, section 8 of the United States 
Constitution, H.R. 3705, as amended, is authorized by Congress' 
power to ``provide for the common Defense and general Welfare 
of the United States.''

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that H.R. 3705, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

              STATEMENT ON DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 3705, as amended, establishes or reauthorizes a program 
of the Federal Government known to be duplicative of another 
Federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                   DISCLOSURE OF DIRECTED RULEMAKING

    Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017), 
the Committee estimates that H.R. 3705, as amended, contains no 
directed rule making that would require the Secretary to 
prescribe regulations.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Sec. 1. Short title

    Section 1 would provide the short title of the bill.

Sec. 2. Department of Veterans Affairs notice relating to debt 
        collection activities

    Section 2(a) would require that VA collaborate with VSOs to 
establish a standard debt notification letter. Such letter 
shall be written in plain language and include a clear 
explanation of why the individual owes money to VA and the 
options available to the individual.
    Section 2(b) would require VA to ensure, to the extent 
practicable, that the letter is delivered to the intended 
recipients by standard mail and by electronic means. However, 
before VA sends a notice by electronic means, the veteran must 
opt-in to receiving notice by such means.
    Section 2(c) would require VA to provide a notice to 
Congress of the completion of the development of the letter 
described in Section 2(a). If the revision of such letter is 
not completed within 90 days of the date of enactment of this 
Act, VA shall submit a report describing the progress in 
developing such letter and an explanation for why the letter 
has not been completed. VA shall also provide an update on the 
progress in developing such letter every 30 days thereafter 
until the development to such letter is completed.
    Section 2(d) would require VA to study the process by which 
VA notifies veterans of debt collection efforts. Such study 
would include the analysis of the scope of the problem of 
veterans not receiving debt collection notices, a description 
of any non-legislative actions VA can take to reduce the number 
of incorrect or unknown addresses in VA's databases, a timeline 
for adopting such actions, and an estimate of the costs 
associated with sending debt collection notices by certified 
mail. VA shall submit a report to Congress on such study not 
later than 12 months after the date of enactment of this Act.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    If enacted, this bill would make no changes in existing 
law.

                                  [all]