S 2073 — A bill to address fees erroneously collected by Department of Veterans Affairs for housing loans, and for other purposes.

Summary

This bill requires the Department of Veterans Affairs (VA) to submit a plan to identify individuals who were erroneously charged a fee between January 1, 2012, and December 31, 2017, in relation to VA-backed home loans. Specifically, the bill focuses on veterans who are rated as eligible for disability compensation and are supposed to have such home loan fees waived by the VA. The VA must also submit a plan to identify individuals who were erroneously charged a fee prior to January 1, 2012. Both plans must include the number of individuals who may be due a refund and a time line for refunding the fees. The bill also requires the VA to develop an automated process for refunding fees, update policies to ensure certificates of eligibility are accurate for determining eligibility under the VA home loan guaranty program and the exemption from the collection of fees, develop a process for determining whether a fee has been collected from an individual with a waiver (due to service-connected death or disability), and develop a plan for annual audits to determine the rate at which fees are erroneously collected from individuals with waivers.

Bill Text

• Introduced Introduced in Senate Current html July 10, 2019

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill introduces measures for identifying and refunding fees erroneously collected from veterans under 38 U.S.C. § 3729.

• 38 U.S.C. § 3729

  (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.

  This change establishes a new process for refunding fees collected from eligible veterans and exempts these refund payments from taxation.

• 38 U.S.C. § 3729

  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.

  This addition requires the Secretary to create an automated system to process refunds for erroneous fee collections.

• 38 U.S.C. § 3729

  Not later than 90 days after the date of the enactment of this Act, the Secretary 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.

  This mandates the Secretary to develop a plan to identify veterans who were wrongly charged fees during a specific period.

• 38 U.S.C. § 3729

  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.

  This requires the Secretary to also plan for identifying veterans charged fees before the specified date.

• 38 U.S.C. § 3729

  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.

  This ensures that the Secretary has a plan in place for processing the refunds owed to veterans.

• 38 U.S.C. § 3729

  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.

  This adds a requirement for the Secretary to report annually on the refunds processed.

• 38 U.S.C. § 3729

  For any individual identified under the process developed under paragraph (1), the Secretary shall process the refund without requiring further request.

  This prohibits the Secretary from requiring veterans to request refunds for erroneously collected fees.

• 38 U.S.C. § 3729

  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).

  This requires a report on the measures taken to ensure accurate eligibility certificates.

• 38 U.S.C. § 3729

  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.

  This mandates an annual audit to evaluate the accuracy of fee collections under the specified section.

Action History

1. July 10, 2019

   Introduced in Senate

2. July 10, 2019

   Read twice and referred to the Committee on Veterans' Affairs.

Sponsors

• Jon Tester · Cosponsor
• Tina Smith · Cosponsor
• John Boozman · Primary

Subjects