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

SEC. 252. PROHIBITION OF DEBT ARISING FROM OVERPAYMENT DUE TO DELAY IN PROCESSING BY THE DEPARTMENT OF VETERANS AFFAIRS.(a) Bar to Recovery.—(1) In general.—Chapter 53 of title 38, United States Code, is amended by inserting after section 5302A the following new section:“§ 5302B. Prohibition of debt arising from overpayment due to delay in processing“(a) Limitation.—(1) Except as provided in paragraph (2), no individual may incur a debt to the United States that—“(A) arises from the participation of the individual in a program or benefit administered by the Under Secretary for Benefits; and “(B) 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. “(2) Nothing in this section shall be construed to affect the penal and forfeiture provisions for fiduciaries set forth in chapter 61 of this title. “(b) Notice.—(1) 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. “(2) Notice under paragraph (1) shall include a detailed explanation of the right of the individual—“(A) to dispute the overpayment, including a detailed explanation of the process by which to dispute the overpayment; or “(B) to request a waiver of indebtedness. “(c) Delay on Collection.—(1) Subject to paragraph (2), the Secretary may not take any action under section 3711 of title 31 regarding an overpayment described in a notice under subsection (b) of this section until the date that is 90 days after the date the Secretary issues such notice. “(2) The Secretary may take action under section 3711 of title 31 regarding an overpayment described in a notice under subsection (b) of this section before the date that is 90 days after the date the Secretary issues such notice if the Secretary determines that delaying such action is—“(A) likely to make repayment of such overpayment more difficult for an individual;136 STAT. 5463 “(B) likely to cause an unpaid debt to be referred to the Treasury Offset Program; or “(C) not in the best interest of the individual.” . (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.—(1) In general.—Not later than 180 days after the date of the enactment of this Act, and one year thereafter, the Secretary of Veterans Affairs shall provide the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of representatives a briefing and submit to such committees a report on the improvement of the notification of and communication with individuals who receive overpayments made by the Secretary. (2) Contents.—Each report under paragraph (1) shall include each of the following:(A) The plan of the Secretary to carry out each of the following:(i) 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. (ii) 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. (iii) The development and implementation 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. (iv) The improvement and clarification of Department communications relating to overpayments and debt collection, including letters and electronic correspondence and including information relating to the most common reasons individuals eligible for benefits under the laws administered by the Secretary incur debts to the United States and the process for requesting a waiver of such debt. The Secretary shall develop such improvements and clarifications in consultation with veterans service organizations, labor organizations that represent employees of the Department, other relevant nongovernmental organizations, the Committee on Veterans’ Affairs of the Senate, and the Committee on Veterans’ Affairs of the House of Representatives. (B) A description of the current efforts and plans for improving the accuracy of payments to individuals entitled 136 STAT. 5464 to benefits under the laws administered by the Secretary, including specific data matching agreements. (C) 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. (D) A list of actions completed, implementation steps, and timetables for each requirement described in subparagraphs (A) through (C). (E) A description of any new legislative authority required to complete any such requirement.