38 U.S.C. § 5302B

Current through P.L. 118-107 (published on www.congress.gov on 11/21/2024)
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;
(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.

38 U.S.C. § 5302B

Added Pub. L. 117-328, div. U, title II, §252(a)(1), Dec. 29, 2022, 136 Stat. 5462.

STATUTORY NOTES AND RELATED SUBSIDIARIES

REGULATIONS Pub. L. 117-328, div. U, title II, §252(a)(3), Dec. 29, 2022, 136 Stat. 5463, provided that: "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 [Dec. 29, 2022]."