S.Amdt. 815

SA 815. Mr. BOOZMAN submitted an amendment intended to be proposed to
amendment SA 764 submitted by Mr. Inhofe and intended to be proposed to
the bill S. 1790, to authorize appropriations for fiscal year 2020 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place in title X, insert the following:

SEC. ___. FEES ERRONEOUSLY COLLECTED BY DEPARTMENT OF
VETERANS AFFAIRS FOR HOUSING LOANS.

(a) Findings.--Congress makes the following findings:
(1) The Department of Veterans Affairs offers a Department
backed home loan for which veterans are generally required to
pay fees to defray the cost of administering the home loan.
(2) Veterans are exempt from paying the fees if they are
entitled to receive disability compensation from the
Department of Veterans Affairs.
(3) Between January 1, 2012, and December 31, 2017,
veterans paid fees of more than $286,000,000 in association
with Department backed home loans despite being exempt from
such fees. Fees paid included $65,800,000 in fees that could
have been avoided.
(4) Of those erroneously paid fees, $189,000,000 in fee
refunds are still due to veterans.
(5) More than 70,000 veterans may have been affected by
these erroneously paid fees.
(b) Refunds of Erroneously Collected Fees.--Section 3729(c)
of title 38, United States Code, is amended by adding at the
end the following new paragraph:
``(3)(A) The Secretary shall develop a process for
determining whether a fee has been collected under this
section from a veteran described in paragraph (1).
``(B) If the Secretary determines that a fee was collected
under this section from an veteran described in paragraph
(1), the Secretary pay to such veteran 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.
``(D) A payment under subparagraph (B) shall be made
directly to a veteran, notwithstanding any current loan
balance of the veteran or the manner in which the fee was
originally collected.
``(4)(A) The Secretary shall develop an automated process
for refunding fees under paragraph (3)(B).
``(B) For any individual identified under the process
developed under subparagraph (A), the Secretary shall process
the refund without requiring further request.''.
(c) Plan to Identify Individuals Who Were Erroneously
Charged Fees.--
(1) Erroneous charges january 1, 2012, to december 31,
2017.--
(A) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of Veterans Affairs
shall submit to Congress a plan to identify veterans
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.
(B) Contents.--The plan submitted under paragraph (1) shall
include the following:
(i) The number of veterans who may be due a refund of the
fee.
(ii) A timeline for the refunding of fees.
(2) Erroneous charges before january 1, 2012.--
(A) In general.--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 veterans
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.
(B) Contents.--The plan submitted under paragraph (1) shall
include the following:
(i) The number of veterans who may be due a refund of the
fee.
(ii) A timeline for the refunding of fees.
(d) Plan to Process Refunds.--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.
(e) Annual Report on Refunds.--
(1) 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.
(2) Contents.--Each report submitted under paragraph (1)
shall include, for the period covered by the report:
(A) The number of fees collected under such section that
were refunded and applied to a home loan balance.
(B) The number of such refunds for which the Secretary
received documentation of the application of a refund to a
home loan balance.
(f) Accuracy of Certificates of Eligibility.--
(1) In general.--The Secretary shall update such policies
as may be necessary to ensure that certificates of
eligibility are accurate at the time they are used for the
purposes of determining eligibility for housing loans
guaranteed, insured, or made under chapter 37 of title 38,
United States Code, and for pursues of determining
eligibility for exemption from the collection of fees under
section 3729 of such title.
(2) Report.--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).
(g) Audit Plan.--
(1) Plan required.--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.

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(2) Reports.--Not later than 60 days after the completion
of any audit conducted pursuant to the plan developed under
paragraph (1), the Secretary shall submit to Congress a
report on the findings of the Secretary with respect to the
audit.
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