[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1656 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 1656
To amend title 38, United States Code, to permit certain fee agreements
between claimants and agents or attorneys for the preparations,
presentation, or prosecution of initial claims for benefits under the
laws administered by the Secretary of Veterans Affairs, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2025
Mr. Bergman (for himself, Mr. Correa, Mrs. Miller-Meeks, Mr. Rouzer,
Mr. Webster of Florida, Mr. McDowell, Mr. Harrigan, and Mr. Alford)
introduced the following bill; which was referred to the Committee on
Veterans' Affairs
_______________________________________________________________________
A BILL
To amend title 38, United States Code, to permit certain fee agreements
between claimants and agents or attorneys for the preparations,
presentation, or prosecution of initial claims for benefits under the
laws administered by the Secretary of Veterans Affairs, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Preserving Lawful Utilization of
Services for Veterans Act of 2025'' or the ``PLUS for Veterans Act of
2025''.
SEC. 2. CLARIFICATION OF PREPARATION, PRESENTATION, OR PROSECUTION OF A
CLAIM UNDER A LAW ADMINISTERED BY SECRETARY OF VETERANS
AFFAIRS.
Section 5901 of title 38, United States Code, is amended by adding
at the end the following new subsection:
``(c) Exclusion.--The administration of a medical examination, or
the completion of a report with respect to such medical examination, as
described in section 5125 of this title, shall not constitute the
preparation, presentation, or prosecution of a claim under the laws
administered by the Secretary.''.
SEC. 3. AGENTS AND ATTORNEYS IN CERTAIN CLAIMS UNDER LAWS ADMINISTERED
BY SECRETARY OF VETERANS AFFAIRS: APPLICATIONS FOR
RECOGNITION; FEES ALLOWABLE FOR REPRESENTATION; GROUNDS
FOR SUSPENSION; BARS FROM RECOGNITION.
(a) In General.--Section 5904 of title 38, United States Code, is
amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by inserting ``(A)'' before ``Except'';
and
(ii) by adding at the end the following new
subparagraphs:
``(B)(i) An individual desiring recognition under this section
shall submit to the Secretary an application, including an application
submitted by mail, fax, or electronic means, in such form, at such
time, and containing such information and assurances as the Secretary
has determined appropriate to recognize such individual under this
section.
``(ii) If the Secretary cannot verify whether the individual
satisfies the qualifications and standards prescribed under paragraph
(2) before the 90-day period beginning after the date on which the
Secretary receives an application under clause (i), the Secretary shall
recognize the individual on a conditional and temporary basis for a
one-year period.
``(iii) At the end of such one-year period, the Secretary shall
recognize the individual on a conditional and temporary basis for such
additional one-year periods until the date on which the Secretary can
verify whether the individual satisfies such qualifications and
standards.
``(C) The Secretary may not suspend, exclude from further practice
before the Department, fine pursuant to section 5905 of this title, or
refuse to recognize as an agent or attorney under this section any
individual on the basis that such individual, before the date of the
enactment of this subparagraph--
``(i) charged a claimant a fee for services rendered in the
preparation, presentation, or prosecution of an initial claim;
or
``(ii) charged a claimant a fee for such services while
such individual was not recognized under this section.''; and
(B) by adding at the end the following new
paragraph:
``(7)(A) The Secretary may charge and collect an assessment from an
individual who--
``(i) seeks recognition under this section as an agent or
attorney for the preparation, presentation, and prosecution of
an initial claim under the laws administered by the Secretary;
and
``(ii) charges or collects fees from a claimant for
services rendered in such preparation, presentation, and
prosecution.
``(B) An assessment described in subparagraph (A)--
``(i) shall be in such amount as the Secretary prescribes
in regulations and determines appropriate; and
``(ii) may not exceed $500.
``(C) Amounts collected under this paragraph shall be deposited in
a revolving fund in the Treasury of the United States. Such amounts
shall be available to the Secretary for the administration of this
section.'';
(2) in subsection (b)--
(A) by redesignating paragraphs (1) through (9) as
subparagraphs (A) through (I), respectively;
(B) in the matter preceding subparagraph (A), as so
redesignated, by inserting ``(1)'' before ``The
Secretary''; and
(C) in paragraph (1), as designated by paragraph
(2)--
(i) in subparagraph (H), as so
redesignated, by striking ``in accordance with
subsection (c)(3)(A) ; or'' and inserting
``subsection (c)(2)(A)'';
(ii) in subparagraph (I), as so
redesignated, by striking the period at the end
and inserting ``; or''; and
(iii) by adding at the end the following
new subparagraph:
``(J) has failed to keep claimant data and
personally identifiable information in accordance with
applicable provisions of the Health Insurance
Portability and Accountability Act of 1996 (Public Law
104-191; 42 U.S.C. 1301 et seq.), including the data
security requirements and implementing regulations of
such Act.''; and
(D) by adding at the end the following new
paragraph:
``(2) Not later than one year after the date of the enactment of
the Preserving Lawful Utilization of Services for Veterans Act of 2025
and annually thereafter, the Secretary shall submit to the Committees
on Veterans' Affairs of the Senate and House of Representatives a
report regarding the number of individuals suspended under this
subsection or denied recognition under subsection (a), disaggregated by
the reasons for such suspension or denial and whether the individual
is--
``(A) a representative of an organization recognized under
section 5902 of this title;
``(B) an agent; or
``(C) an attorney.''; and
(3) in subsection (c)--
(A) by inserting ``Flat Fee Agreements.--'' after
``(c)'';
(B) by striking paragraph (1) and inserting the
following:
``(1)(A) In connection with a proceeding before the Department with
respect to benefits under laws administered by the Secretary, a fee
agreement between a claimant and an agent or attorney for the
preparation, presentation, or prosecution of an initial claim for such
benefits shall be a fee agreement described in subparagraph (B).
``(B)(i) A fee agreement described in this subparagraph is a fee
agreement--
``(I) that does not require payment from a claimant to the
agent or attorney before the date on which the claimant is
provided notice of the agency of original jurisdiction's
initial decision under section 5104 of this title with respect
to the initial claim;
``(II) under which the total amount payable by the claimant
to the agent or attorney with respect to the initial claim--
``(aa) is contingent on whether the initial claim
is resolved in a manner favorable to the claimant;
``(bb) does not exceed the lesser of--
``(AA) $12,500 (as adjusted from time to
time under subparagraph (C)); or
``(BB) the amount equal to the product of
five and the amount of the monthly increase of
benefits awarded to the claimant pursuant to
the claim; and
``(III) that contains an attestation by the claimant that
the agent or attorney provided to the claimant the standard
form under clause (iii).
``(ii) For purposes of this subparagraph, an initial claim shall be
considered to have been resolved in a manner favorable to the claimant
if all or any part of the relief sought pursuant to the claim is
granted.
``(iii) For use in fee agreements described in this subparagraph,
the Secretary shall develop a standard form that includes the following
notices:
``(I) That organizations recognized under section 5902 of
this title furnish services with respect to initial claims
under laws administered by the Secretary at no cost to
claimants.
``(II) That a claimant may select a private physician for a
medical examination described in section 5125 of this title
regarding the initial claim.
``(III) That the agent or attorney with whom the claimant
is entering such fee agreement may not refer the claimant to a
private physician described in such section with whom the agent
or attorney has a business relationship.
``(C) Effective on October 1 of each year (beginning in the first
fiscal year after the date of the enactment of the Preserving Lawful
Utilization of Services for Veterans Act of 2025), the Secretary shall
increase the dollar amount in effect under clause (i) of subparagraph
(B) by a percentage equal to the percentage by which the Consumer Price
Index for all urban consumers (U.S. city average) increased during the
12-month period ending with the last month for which Consumer Price
Index data is available. In the event that such Consumer Price Index
does not increase during such period, the Secretary shall maintain the
dollar amount in effect under such clause during the previous fiscal
year.''; and
(C) in paragraph (2)--
(i) by striking ``in a case referred to in
paragraph (1) of this subsection''; and
(ii) by inserting ``in a case'' after
``represents a person'';
(D) in paragraph (3)(A), by striking ``paragraph
(2)'' and inserting ``paragraph (1) or (2)''.
(b) Regulations.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall prescribe regulations to
carry out the amendments made by this section.
SEC. 4. REINSTATEMENT OF PENALTIES FOR CHARGING VETERANS UNAUTHORIZED
FEES RELATING TO CLAIMS UNDER LAWS ADMINISTERED BY THE
SECRETARY OF VETERANS AFFAIRS.
(a) In General.--Section 5905 of title 38, United States Code, is
amended--
(1) in the heading, by striking ``Penalty'' and inserting
``Penalties'';
(2) by inserting ``(a) Withholding of Benefits.--'' before
``Whoever''; and
(3) by adding at the end the following new subsection:
``(b) Charging of Unauthorized Fees.--Except as provided in
sections 5904 or 1984 of this title, whoever directly or indirectly
solicits, contracts for, charges, or receives, or attempts to solicit,
contract for, charge, or receive, any fee or compensation with respect
to the preparation, presentation, or prosecution of any claim for
benefits under the laws administered by the Secretary shall be fined as
provided in title 18, or imprisoned not more than one year, or both.
``(c) Violations During Conditional and Temporary Recognition.--If
an individual recognized as an agent or attorney on a conditional and
temporary basis pursuant to clause (ii) or (iii) of section
5904(a)(1)(B) of this title violates any law or regulation administered
by the Secretary under this chapter on or after the date on which such
individual is so recognized--
``(1) the Secretary shall, after notice, revoke the
conditional and temporary recognition of the individual; and
``(2) such individual, after notice and opportunity for a
hearing, shall be--
``(A) fined $50,000; and
``(B) barred from recognition under section 5904 of
this title--
``(i) for a period of one year beginning on
the date of the first violation; and
``(ii) for a period of 10 years beginning
on the date of each subsequent violation.
``(d) Deposit of Fines.--Any amount received by the Federal
Government from a fine imposed under subsection (b) or (c) shall be
deposited in the fund established by section 5904(a)(7)(C) of this
title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 59 of such title is amended by striking the item relating to
section 5905 and inserting the following new item:
``5905. Penalties for certain acts.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date that is 90 days after the date on which the
Secretary prescribes the regulations required by subsection (b) of
section 3.
SEC. 5. FEDERAL PREEMPTION.
This Act, and the amendments made by this Act, supersede any State
law that is inconsistent with the statutory rights established by this
Act, or such amendments, and preclude the implementation of such a law,
whether statutory, common law, or otherwise, and whether adopted before
or after the date of enactment of this Act.
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