Veteran Fraud Reimbursement Act

IIB 118TH CONGRESS 2D SESSION H. R. 4016 IN THE SENATE OF THE UNITED STATES MAY 1, 2024 Received; read twice and referred to the Committee on Veterans’ Affairs AN ACT To amend title 38, United States Code, to improve the repayment by the Secretary of Veterans Affairs of bene- fits misused by a fiduciary. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 02:15 May 02, 2024 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4016.RFS H4016 ssavage on LAPJG3WLY3PROD with BILLS 2 HR 4016 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Veteran Fraud Reim- 2 bursement Act’’. 3 SEC. 2. IMPROVEMENT TO REPAYMENT BY SECRETARY OF 4 VETERANS AFFAIRS OF CERTAIN MISUSED 5 BENEFITS. 6 Section 6107 of title 38, United States Code, is 7 amended to read as follows: 8 ‘‘§ 6107. Reissuance of benefits 9 ‘‘(a) REISSUANCE OF MISUSED BENEFITS.—(1) In 10 any case in which a fiduciary misuses all or part of an 11 individual’s benefit paid to such fiduciary, the Secretary 12 shall pay to the beneficiary or the beneficiary’s successor 13 fiduciary an amount equal to the amount of such benefit 14 so misused. 15 ‘‘(2) In any case in which the Secretary reissues a 16 benefit payment (in whole or in part) under paragraph (1), 17 the Secretary shall make a good faith effort to obtain 18 recoupment from the fiduciary to whom the payment was 19 originally made. 20 ‘‘(3) In any case in which the Secretary obtains 21 recoupment from a fiduciary who has misused benefits, 22 the Secretary shall promptly remit payment of the re- 23 couped amounts to the beneficiary or the beneficiary’s suc- 24 cessor fiduciary, as the case may be, to the extent that 25 such amounts have not been paid under paragraph (1). 26 VerDate Sep 11 2014 02:15 May 02, 2024 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4016.RFS H4016 ssavage on LAPJG3WLY3PROD with BILLS 3 HR 4016 RFS ‘‘(b) LIMITATION ON TOTAL AMOUNT PAID.—The 1 total of the amounts paid to a beneficiary or the bene- 2 ficiary’s successor fiduciary under this section may not ex- 3 ceed the total benefit amount misused by the fiduciary 4 with respect to that beneficiary. 5 ‘‘(c) OVERSIGHT OF NEGLIGENCE.—(1) The Sec- 6 retary shall establish methods and timing with respect to 7 determining whether an instance of misuse by a fiduciary, 8 of all or part of an individual’s benefit paid to such fidu- 9 ciary, is the result of negligence by the Secretary. 10 ‘‘(2) The Secretary may not withhold the reissuing 11 of a benefit payment under subsection (a)(1) by reason 12 of a pending determination under paragraph (1). 13 ‘‘(3) The Secretary is not required to make a deter- 14 mination under paragraph (1) for each instance of misuse 15 by a fiduciary, of all or part of an individual’s benefit paid 16 to such fiduciary.’’. 17 Passed the House of Representatives April 30, 2024. Attest: KEVIN F. MCCUMBER, Clerk. VerDate Sep 11 2014 02:15 May 02, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4016.RFS H4016 ssavage on LAPJG3WLY3PROD with BILLS