Sec. 671. RECOVERY OF AMOUNTS OWED TO THE UNITED STATES BY MEMBERS OF THE UNIFORMED SERVICES
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## SEC. 671 RECOVERY OF AMOUNTS OWED TO THE UNITED STATES BY MEMBERS OF THE UNIFORMED SERVICES ###
(a)Statute of Limitations Section 1007(c)(3) of title 37, United States Code, is amended by adding at the end the following new subparagraphs: > > ###### “(C) > > > ######
(i)> > In accordance with clause (ii), if the indebtedness of a member of the uniformed services to the United States occurs, through no fault of the member, as a result of the overpayment of pay or allowances to the member or upon the settlement of the member’s accounts, the Secretary concerned may not recover the indebtedness from the member, including a retired or former member, using deductions from the pay of the member, deductions from retired or separation pay, or any other collection method unless recovery of the indebtedness commences before the end of the 10-year period beginning on the date on which the indebtedness was incurred. > > > ###### “(ii) > > Clause
(i)applies with respect to indebtedness incurred on or after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2017. > > > ##### “(D) > > > ######
(i)> > Not later than January 1 of each of 2017 through 2027, the Director of the Defense Finance and Accounting Service shall review all cases occurring during the 10-year period prior to the date of the review of indebtedness of a member of the uniformed services, including a retired or former member, to the United States in which— > > > ###### “(I) > > the recovery of the indebtedness commenced after the end of the 10-year period beginning on the date on which the indebtedness was incurred; or > > > ###### “(II) > > the Director did not otherwise notify the member of such indebtedness during such 10-year period. > > > ###### “(ii) > > The Director shall submit to the congressional defense committees and the Committees on Veterans’ Affairs of the House of Representatives and the Senate each review conducted under clause (i), including the amounts owed to the United States by the members included in such review.” > . ###
(b)Remission or Cancellation of Indebtedness of Reserves Not on Active Duty ####
(1)Army Section 4837(a) of title 10, United States Code, is amended by striking “on active duty as a member of the Army” and inserting “as a member of the Army, whether as a regular or a reserve in active status”. ####
(2)Navy Section 6161(a) of such title is amended by striking “on active duty as a member of the naval service” and inserting “as a member of the naval service, whether as a regular or a reserve in active status”. ####
(3)Air force Section 9837(a) of such title is amended by striking “on active duty as a member of the Air Force” and inserting “as a member of the Air Force, whether as a regular or a reserve in active status”. ####
(4)Coast guard Section 461(1) of title 14, United States Code, is amended by striking “on active duty as a member of the Coast Guard” and inserting “as a member of the Coast Guard, whether as a regular or a reserve in active status”. ####
(5)Effective date **[**[10 U.S.C. 4837 note](/us/usc/t10/s4837)**]** The amendments made by this subsection shall take effect on the date of the enactment of this Act, and shall apply with respect to debt incurred on or after October 7, 2001. ###
(c)Benefits Paid to Members of California National Guard ####
(1)Review of certain benefits paid #####
(A)In general The Secretary of Defense shall conduct a review of all bonus pays, special pays, student loan repayments, and similar special payments that were paid to members of the National Guard of the State of California during the period beginning on January 1, 2004, and ending on December 31, 2015. #####
(B)Exception A review is not required under this paragraph for benefits paid as described in subparagraph
(A)that were reviewed before the date of the enactment of this Act and in which fraud or other ineligibility was identified in connection with payment. #####
(C)Conduct of review The Secretary shall establish a process to expedite the review required by this paragraph. The Secretary shall allocate appropriate personnel and other resources of the Department of Defense for the process, and for such other purposes as the Secretary considers appropriate, in order to achieve the completion of the review by the date specified in subparagraph (D). #####
(D)Completion The review required by this paragraph shall be completed by not later than July 30, 2017. ####
(2)Review #####
(A)In general In conducting the review of benefits paid to members of the National Guard of the State of California pursuant to paragraph (1), the board of review concerned shall— ######
(i)carry out a complete review of all bonus pay and special pay contracts awarded to such members during the period described in paragraph (1)(A) for which the Department has reason to believe a recoupment of pay may be warranted in order to determine whether such members were eligible for the contracts so awarded and whether the contracts so awarded accurately specified the amounts of pay for which members were eligible; ######
(ii)carry out a complete review of all student loan repayment contracts awarded to such members during the period for which the Department has reason to believe a recoupment of payment may be warranted in order to determine whether such members were eligible for the contracts so awarded and whether the contracts so awarded accurately specified the amounts of payment for which members were eligible; ######
(iii)carry out a complete review of any other similar special payments paid to such members during the period for which the Department has reason to believe a recoupment of payments may be warranted in order to determine whether such members were eligible for payment and in such amount; ######
(iv)if any member is determined not to have been eligible for a bonus pay, special pay, student loan repayment, or other special payment paid, determine whether waiver of recoupment is warranted; and ######
(v)if any bonus pay, special pay, student loan repayment, or other special payment paid to any such member during the period has been recouped, determine whether the recoupment was unwarranted. #####
(B)Waiver of recoupment For purposes of clause
(iv)of subparagraph (A), the board of review shall determine that waiver of recoupment is warranted with respect to a particular member unless the board makes an affirmative determination, by a preponderance of the evidence, that the member knew or reasonably should have known that the member was ineligible for the bonus pay, special pay, student loan repayment, or other special payment otherwise subject to recoupment. #####
(C)Propriety of recoupment For purposes of clause
(v)of subparagraph (A), the board of review shall determine that recoupment was unwarranted with respect to a particular member unless the board makes an affirmative determination, by a preponderance of the evidence, that the member knew or reasonably should have known that the member was ineligible for the bonus pay, special pay, student loan repayment, or other special payment recouped. #####
(D)Standard of review In applying subparagraph
(B)or
(C)in making a determination under clause
(iv)or
(v)of subparagraph (A), as applicable, with respect to a member, the board of review shall evaluate the evidence in a light most favorable to the member. ####
(3)Participation of members #####
(A)In general A member subject to a determination under clause
(iv)or
(v)of paragraph (2)(A) may submit to the board of review concerned such documentary and other evidence as the member considers appropriate to assist the board of review in the determination. #####
(B)Notice The Secretary shall notify, in writing, each member subject to a determination under clause
(iv)or
(v)of paragraph (2)(A) of the review under paragraph
(1)and the applicability of the determination process under such clause to such member. The notice shall be provided at a time designed to give each member a reasonable opportunity to submit documentary and other evidence as authorized by subparagraph (A). The notice shall provide each member the following: ######
(i)Notice of the opportunity for such member to submit evidence to assist the board of review. ######
(ii)A description of resources available to such member to submit such evidence. #####
(C)Consideration In making a determination under clause
(iv)or
(v)of paragraph (2)(A) with respect to a member, the board of review shall undertake a comprehensive review of any submissions made by the member pursuant to this paragraph. ####
(4)Actions following review #####
(A)Waiver of recoupment Upon completion of a review pursuant to paragraph (2)(A)(iv) with respect to a member— ######
(i)the board of review shall submit to the Secretary concerned a notice setting forth— ######
(I)the determination of the board pursuant to that paragraph with respect to the member; and ######
(II)the recommendation of the board whether or not the recoupment of the bonus pay, special pay, student loan repayment, or other special payment covered by the determination should be waived; and ######
(ii)the Secretary may waive recoupment of the pay, repayment, or other payment from the member. #####
(B)Repayment of amount recouped Upon completion of a review pursuant to paragraph (2)(A)(v) with respect to a member— ######
(i)the board of review shall submit to the Secretary concerned a notice setting forth— ######
(I)the determination of the board pursuant to that paragraph with respect to the member; and ######
(II)the recommendation of the board whether or not the recouped bonus pay, special pay, student loan repayment, or other special payment covered by the determination should be repaid the member; and ######
(ii)the Secretary may repay the member the amount so recouped. #####
(C)Consumer credit and related matters If the Secretary concerned waives recoupment of a bonus pay, special pay, student loan repayment, or other special payment paid a member pursuant to paragraph (4)(A)(ii), or repays a member an amount of a bonus pay, special pay, student loan repayment, or other special payment recouped pursuant to paragraph (4)(B)(ii), the Secretary shall— ######
(i)in the event the Secretary had previously notified a consumer reporting agency of the existence of the debt subject to the relief granted the member pursuant to this paragraph, notify such consumer reporting agency that such debt was never valid; and ######
(ii)if the member is experiencing or has experienced financial hardship as a result of the actions of the United States to obtain recoupment of such debt, assist the member, to the extent practicable, in addressing such financial hardship in accordance with such mechanisms as the Secretary shall develop for purposes of this clause. #####
(D)Effect of consumer credit notification A consumer reporting agency notified of the invalidity of a debt pursuant to subparagraph (C)(i) may not, after the date of the notice, make any consumer report containing any information relating to the debt. #####
(E)Definitions In this paragraph, the terms “consumer reporting agency” and “consumer report” have the meaning given such terms in section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a). ####
(5)Funding Amounts for activities under this subsection, including for the conduct of the review required by paragraph (1), for activities in connection with the review, for repayments pursuant to paragraph (4)(B), and for activities under paragraph (4)(C), shall be derived from amounts available for the National Guard of the United States for the State of California. ####
(6)Secretary of defense report #####
(A)In general Not later than August 1, 2017, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the review conducted pursuant to paragraph (1). #####
(B)Elements The report under this paragraph shall include the following: ######
(i)The total amount of bonus pays, special pays, student loan repayments, and other special pays paid to members of the National Guard of the State of California during the period beginning on September 1, 2001, and ending on December 31, 2015. ######
(ii)The number of bonus pay and special pay contracts reviewed pursuant to paragraph (2)(A)(i), and the amounts of such pays paid under each such contract. ######
(iii)The number of student loan repayment contracts reviewed pursuant to paragraph (2)(A)(ii), and the amounts of such payments made pursuant to each such contract. ######
(iv)The number of other special pay payments reviewed pursuant to paragraph (2)(A)(iii), and the amounts of such payments made to each particular member so paid. ######
(v)The number of bonus pay and special pay contracts, student loan repayments, and other special pay payments that were determined pursuant to the review to be paid in error, and the total amount, if any, recouped from each member concerned. ######
(vi)Any additional fraud or other ineligibility identified in the course of the review in the payment of bonus pays, special pays, student loan repayments, and other special pays paid to the members of the National Guard of the State of California during the period beginning on September 1, 2001, and ending on December 31, 2015. ####
(7)Comptroller general report #####
(A)In general Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the actions of the National Guard of the State of California relating to the payment of bonus pays, special pays, student loan repayments, and other special pays from 2004 through 2015. #####
(B)Elements The report under this paragraph shall include the following: ######
(i)An assessment whether the National Guard of the State of California and the National Guard Bureau have established policies and procedures that will minimize the chance of improper payment of such pays and repayments and of managerial abuse in the payment of such pays and repayments. ######
(ii)An assessment whether the procedures, processes, and resources of the Defense Finance and Accounting Service and the Defense Office of Hearings and Appeals were appropriate to identify and respond to fraud or other ineligibility in connection with the payment of such pays and repayments, and to do so in a timely manner. ######
(iii)Any recommendations the Comptroller General considers appropriate to streamline the procedures and processes for the waiver of recoupment of the payment of such pays and repayments by the United States when recoupment is unwarranted. # TITLE VII HEALTH CARE PROVISIONS ## Subtitle A Reform of TRICARE and Military Health System
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Sec. 671
RECOVERY OF AMOUNTS OWED TO THE UNITED STATES BY MEMBERS OF THE UNIFORMED SERVICES
Cite10 USC 4837
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