[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]