Voglio sapere a riguardo di…

Federal Register / Vol. 86, No. 139 / Friday, July 23, 2021 / Proposed Rules available at regulations.gov for public viewing, inspection, or copies.
FOR FURTHER INFORMATION CONTACT:

Jason Hoge, Director of Operations, Debt Management Center, Office of Management, 189, 1 Federal Drive, Suite 4500, Fort Snelling, MN 55111, 612
7254337. This is not a toll-free telephone number.
SUPPLEMENTARY INFORMATION:

Summary of Proposed Regulatory Changes We propose to amend VAs regulation that governs reporting of delinquent debts to CRA. This rulemaking would update the regulation to comply with section 2007 of Public Law 116315, the Johnny Isakson and David P. Roe, M.D.
Veterans Health Care and Benefits Improvement Act of 2020. Section 2007
amends chapter 53 of title 38, United States Code by adding section 5320 as follows: The Secretary shall prescribe regulations that establish the minimum amount of a claim or debt, arising from a benefit administered by the Under Secretary for Benefits or Under Secretary for Health, that the Secretary will report to a consumer reporting agency under section 3711 of title 31.
This proposed amendment will establish the methodology for determining the minimum threshold for reporting certain VA debts to CRA. It will also exclude from the minimum threshold those debts in which there is an indication of fraud, misrepresentation, or bad faith on the part of the debtor.

khammond on DSKJM1Z7X2PROD with PROPOSALS

Background on Governing Statutes The Debt Collection Improvement Act of 1996 DCIA, in part, mandated agencies to report delinquent debts to CRA. 31 U.S.C. 3711e; Sec. 31001k, Public Law 104134, 110 Stat. 1321.
The purpose of the DCIA includes maximizing collection of delinquent debts by ensuring quick action to recover debts, use of appropriate collection tools, and minimizing the costs of debt collection. Sec. 31001b, Public Law 104134.
Section 5320 of title 38, United States Code, authorizes VA to establish the minimum amount of a claim or debt, arising from a benefit administered by the Under Secretary for Benefits or Under Secretary for Health, that the Secretary will report to a consumer reporting agency under section 3711 of title 31. The intent of section 5320 is to lessen negative impact of CRA reports on Veterans.

VerDate Sep<11>2014

16:27 Jul 22, 2021

Jkt 253001

Introduction to Proposed Regulatory Changes As explained in more detail below, we propose to amend 38 CFR 1.916 to comply with 38 U.S.C. 5320, to establish a minimum threshold for reporting debts to CRA.
In accordance with 31 U.S.C. 3711e, the VA Debt Management Center DMC
is responsible for reporting delinquent debts to CRA. Prior to January 5, 2021, DMC reported an average of 5,000
delinquent Veteran accounts monthly.
DMC regularly receives complaints from Veterans whose accounts have been reported to CRA. Common complaints from Veterans include: Loss of security clearance, inability to obtain approval for home loans or home refinancing, and difficulty securing rental housing.
This proposed amendment recognizes that the debts described in 38 U.S.C.
5320 are fundamentally different from consumer debt. Debts arising from a benefit administered by the Under Secretary for Benefits or the Under Secretary for Health may result from a variety of scenarios, including overpayments that are not the fault of the Veteran.
Section 5320 authorizes the Secretary to establish a minimum threshold that will ultimately reduce the number of debts that will be reported to CRA. This will, in turn, decrease the number of Veterans negatively impacted by these reports. The VAs mission is to care for those who shall have borne the battle and for their families and survivors.
Negative credit reports may cause housing insecurity or job loss, and this result is inconsistent with VAs mission.
38 CFR 1.916 Disclosure of Debt Information to Consumer Reporting Agencies CRA
We propose to amend 38 CFR 1.916, which sets forth the requirements for reporting delinquent debts to CRA, by inserting subparagraphs c1 through 3 to provide the methodology used by the Secretary to establish the minimum threshold. This section would also clarify that the minimum threshold applies only to a debt of an individual that arises from a benefit administered by the Under Secretary for Benefits or Under Secretary for Health.
We propose subparagraphs c1
through 3 state:
1. The Secretary has established a minimum threshold for a debt, arising from a benefit administered by the Under Secretary for Benefits or Under Secretary for Health, that the Secretary will report to a consumer reporting agency under section 3711 of title 31.
2 VA will only report those debts that meet the following standards:

PO 00000

Frm 00019

Fmt 4702

Sfmt 4702

38959

i The debt is classified as currently not collectible. For purposes of this paragraph, the debt is currently not collectible if VA has exhausted available collection efforts, including, as appropriate, referrals for administrative offset and enforced collection;
ii The debt is not owed by an individual who is determined by VA to be catastrophically disabled or has reported to VA a gross household income below the applicable geographically adjusted income limits that would entitle a VA beneficiary to cost-free health care, medications and/
or beneficiary travel; and iii The outstanding debt amount is over $25, or such higher amount VA
may from time to time prescribe, in accordance with section 1.921 of this part.
3 The minimum threshold set forth in this paragraph will not apply if there is an indication of fraud, misrepresentation, or bad faith on the part of the individual in connection with the debt.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563
direct agencies to assess the costs and benefits of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits including potential economic, environmental, public health and safety effects, and other advantages;
distributive impacts; and equity.
Executive Order 13563 Improving Regulation and Regulatory Review emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. The Office of Information and Regulatory Affairs has determined that this rule is not a significant regulatory action under Executive Order 12866. The Regulatory Impact Analysis associated with this rulemaking can be found as a supporting document at www.regulations.gov.
Regulatory Flexibility Act The Secretary hereby certifies that this proposed rule will not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act 5 U.S.C. 601612. The regulations established by this rulemaking do not impose burdens or otherwise regulate the activities of any small entities outside of VA. Therefore, pursuant to 5 U.S.C. 605b, the initial and final regulatory flexibility analysis requirements of 5 U.S.C. 603 and 604 do not apply.

E:FRFM23JYP1.SGM

23JYP1