[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3132 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3132
To amend title 38, United States Code, to allow for certain fee
agreements for services rendered in the preparation, presentation, and
prosecution of initial claims and supplemental claims for benefits
under laws administered by the Secretary of Veterans Affairs, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 1, 2025
Mr. Bergman (for himself, Mr. Bost, Mr. Self, and Mr. Van Orden)
introduced the following bill; which was referred to the Committee on
Veterans' Affairs
_______________________________________________________________________
A BILL
To amend title 38, United States Code, to allow for certain fee
agreements for services rendered in the preparation, presentation, and
prosecution of initial claims and supplemental claims for benefits
under 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Certified Help
Options in Claims Expertise for Veterans Act of 2025'' or the ``CHOICE
for Veterans Act of 2025''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Promotion of availability of assistance from individuals
recognized by Secretary of Veterans Affairs
for preparation, presentation, and
prosecution of certain claims for benefits
under laws administered by the Secretary.
Sec. 3. Agents and attorneys in certain claims under laws administered
by Secretary of Veterans Affairs:
applications for recognition; grounds for
suspension; fees allowable.
Sec. 4. Penalties for certain acts during the preparation,
presentation, or prosecution of claims for
benefits under laws administered by the
Secretary of Veterans Affairs.
Sec. 5. Comptroller General review of process for recognition of agents
and attorneys for preparation,
presentation, and prosecution of certain
claims under laws administered by the
Secretary.
Sec. 6. Publication of information with respect to recognition as agent
or attorney for preparation, presentation,
and prosecution of certain claims under
laws administered by the Secretary;
biennial review.
Sec. 7. Federal preemption.
Sec. 8. Extension of certain limits on payments of pension.
SEC. 2. PROMOTION OF AVAILABILITY OF ASSISTANCE FROM INDIVIDUALS
RECOGNIZED BY SECRETARY OF VETERANS AFFAIRS FOR
PREPARATION, PRESENTATION, AND PROSECUTION OF CERTAIN
CLAIMS FOR BENEFITS UNDER LAWS ADMINISTERED BY THE
SECRETARY.
(a) Notice of Availability of Assistance From Accredited Persons.--
Section 5103A of title 38, United States Code, is amended--
(1) by redesignating subsections (g) through (i) as
subsections (h) through (j), respectively; or
(2) by inserting after subsection (f) the following new
subsections:
``(g) Notice of Availability of Representation.--(1) Upon receipt
of a claim, or supplemental claim, by a claimant not represented by an
accredited person, the Secretary shall provide notice to the claimant
that--
``(A) an accredited person may be available to the claimant
for the preparation, presentation, or prosecution of such claim
or supplemental claim;
``(B) an organization recognized under section 5902 of this
title is available to the claimant for the preparation,
presentation, or prosecution of such claim or supplemental
claim at no cost to the claimant; and
``(C) includes the web addresses of the Department websites
described in paragraph (2).
``(2)(A) The Secretary shall maintain, on a publicly
available website of the Department--
``(i) a list of accredited persons available to the
claimant for the preparation, presentation, or
prosecution of an initial claim or supplemental claim;
and
``(ii) a system through which a claimant may
report--
``(I) a person, who is not an accredited
person, who prepared, presented, or prosecuted
a claim or supplemental claim on behalf of the
claimant; and
``(II) any fee charged by such person
associated with such preparation, presentation,
or prosecution.
``(B) With respect to the list described in paragraph
(1)(A), the Secretary shall--
``(i) update the such list not less than quarterly;
and
``(ii) ensure such list is easily accessible to a
claimant.
``(3) In this subsection, the term `accredited person'
means--
``(A) an organization recognized under section 5902
of this title; or
``(B) an attorney, agent, or other person
recognized under section 5904 of this title.''.
(b) Online Warnings of Fees for Certain Representation.--The
Secretary of Veterans Affairs shall include, in each web portal of the
Department of Veterans Affairs through which an individual may file a
claim for a benefit under the laws administered by the Secretary, a
warning with respect to fees an agent or attorney recognized under
section 5904 of such title may charge such individual associated with
the preparation, presentation, or prosecution of such claim. Such
warning shall include the web addresses of the Department websites
maintained pursuant to subsection (g) of section 5103A of such title,
as added by subsection (a).
(c) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall--
(1) complete a review the regulations, processes, and
procedures of the Department of Veterans Affairs that with
respect to the recognition of agents and attorneys under
section 5904 of such title;
(2) develop recommendations for legislative or
administrative action to improve such regulations, processes,
and procedures; and
(3) submit to the Committees on Veterans' Affairs of the
House of Representatives and the Senate a report that
includes--
(A) the findings of the review under paragraph (1);
and
(B) the recommendations developed under paragraph
(2).
SEC. 3. AGENTS AND ATTORNEYS IN CERTAIN CLAIMS UNDER LAWS ADMINISTERED
BY SECRETARY OF VETERANS AFFAIRS: APPLICATIONS FOR
RECOGNITION; GROUNDS FOR SUSPENSION; FEES ALLOWABLE.
(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 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 end of the 180-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 180-day periods until the date on which the Secretary can
verify whether the individual satisfies such qualifications and
standards.
``(C)(i) The Secretary may not refuse to recognize under this
section an individual as an agent or attorney solely on the basis that
such individual--
``(I) before the date of the enactment of this
subparagraph--
``(aa) charged a claimant a fee for services
rendered in the preparation, presentation, or
prosecution of an initial claim; or
``(bb) charged a claimant a fee for such services
while such individual was not recognized under this
section; or
``(II) is an employee of a nonprofit organization and seeks
recognition under this section in the official capacity of such
individual.
``(ii) In this subparagraph, the term `nonprofit organization'
means an organization described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from taxation under section 501(a) of
such Code.''; and
(B) by adding at the end the following new
paragraphs:
``(7)(A) The Secretary shall prescribe regulations to recognize an
individual as an agent or attorney to render services in the
preparation, presentation, and prosecution of initial claims, or a
supplemental claim presented after a final decision with respect to
that claim.
``(B) 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
or a supplemental claim presented after a final decision with
respect to that claim; and
``(ii) charges or collects fees from a claimant for
services rendered in such preparation, presentation, and
prosecution.
``(C) An assessment described in subparagraph (B) shall--
``(i) be in such amount as the Secretary prescribes in
regulations and determines appropriate; and
``(ii) may not exceed $500.
``(D) 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.
``(8)(A) An individual recognized as agent or attorney under this
section for the preparation, presentation, or prosecution of an initial
claim, or a supplemental claim presented after a final decision with
respect to that claim, may not--
``(i) charge any fee for services rendered in such
preparation, presentation, or prosecution if--
``(I) the Secretary determines the disability
associated with such initial claim or supplemental
claim is presumed to be service-connected because the
disability is a chronic disease shown as such during--
``(aa) a period of active military, naval,
air, or space service; or
``(bb) the presumptive period under section
3.307 of title 38, Code of Federal Regulations
(or a successor regulation); or
``(II) such initial claim or supplemental claim is
filed while the claimant is serving on active duty;
``(ii) prohibit a claimant from terminating the
representation agreement between the claimant and the agent or
attorney prior to the date on which the agency of jurisdiction
renders a decision on such initial claim or supplemental claim;
``(iii) charge any fee for services rendered in the
preparation, presentation, and prosecution of such a
supplemental claim that could have been filed in continuous
pursuit of a claim within one year of the previous decision on
that claim, but was filed after such previous decision became
final solely due to delay on the part of the agent or attorney;
or
``(iv) charge any fee for services rendered in the
preparation, presentation, or prosecution of a supplemental
claim, a request for higher-level review by the agency of
original jurisdiction under section 5104B of this title, or
notice of disagreement pursuant to section 5104C(a), where
another individual employed by the same organization as the
agent or attorney, or employed by a subsidiary of the such
organization, previously charged the claimant a fee for the
preparation, presentation, or prosecution of the initial claim,
or the supplemental claim presented after a final decision with
respect to that claim.
``(B)(i) Agents or attorneys recognized under this section shall,
pursuant to regulations prescribed by the Secretary, file a copy of any
fee agreement between the agent or attorney and a claimant for the
preparation, presentation, or prosecution of an initial claim, or a
supplemental claim presented after a final decision with respect to
that claim.
``(ii) The Office of General Counsel of the Department may audit
agents or attorneys recognized under this section to ensure compliance
with the requirements of this paragraph.'';
(2) in subsection (b)--
(A) by redesignating paragraphs (1) through (9) as
subparagraphs (A) through (I), respectively;
(B) by inserting ``(1)'' before ``The Secretary,
after notice'';
(C) in paragraph (1), as designated by subparagraph
(B)--
(i) in subparagraph (H), as so
redesignated, by striking ``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 a semicolon; and
(iii) by adding at the end the following
new subparagraphs:
``(J) has failed to keep client data and personally
identifiable information in accordance with applicable
provisions of the Health Insurance Portability and
Accountability Act of 1996 (42 U.S.C. 1301 et seq.),
including the data security requirements and
implementing regulations of that Act;
``(K) has sold, or otherwise received consideration
for the referral of, any personally identifiable
information or other data and information relating to
an individual for whom the agent or attorney provided
services with respect to the preparation, presentation,
or prosecution of a claim under a law administered by
the Secretary;
``(L) has entered into a fee agreement with a
claimant, or otherwise received consideration from a
claimant, for the preparation, presentation, or
prosecution of an initial claim under the laws
administered by the Secretary, or a supplemental claim
presented after a final decision with respect to that
claim, and referred such claimant to a private medical
professional--
``(i) with whom the agent or attorney has a
business relationship; and
``(ii) who would receive any fee or other
consideration for the provision of any service
related to such initial claim or supplemental
claim; or
``(M) has used an overseas call center to assist
with marketing, initiation, or assistance with, the
preparation, presentation, or prosecution of a claim
under a law administered by the Secretary.''; 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 Certified Help Options in Claims Expertise 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 that includes with
respect to the period covered by the report--
``(A) the number of individuals denied recognition
under subsection (a);
``(B) for each individual denied recognition under
such subsection, a statement of the reasons for such
denial;
``(C) the number of individuals suspended or
excluded from further practice pursuant to this
subsection;
``(D) for each individual so suspended or excluded,
a statement of the reasons for such suspension or
exclusion;
``(E) the number of individuals granted temporary
and conditional recognition pursuant to clause (ii) or
(iii) of subsection (a)(1)(B) penalized under
subsection (c) of section 5905 of this title; and
``(F) for each individual so penalized, a statement
of the reasons for such penalty.'';
(3) in subsection (c)--
(A) by inserting ``Fee Agreements.--'' after
``(c)'';
(B) in paragraph (1), by striking ``paragraph (4)''
and inserting ``paragraph (4) or paragraph (5)'';
(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''; and
(D) by adding at the end the following new
paragraph:
``(5)(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 or a supplemental claim presented after a final decision with
respect to such claim 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 decision of the agency of original
jurisdiction under--
``(aa) under section 5104 of this title with
respect to the initial claim; or
``(bb) under section 5108 of this title with
respect to the supplemental claim;
``(II) under which the total amount payable by the claimant
to the agent or attorney--
``(aa) is contingent on whether the initial claim
or supplemental claim presented after a final decision
with respect to such 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 (E)); 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 or
supplemental claim presented after a final decision with respect to
such 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.
``(C) For use in fee agreements described in subparagraph (B), the
Secretary shall develop a standard form that includes the a notice to
the claimant that organizations recognized under section 5902 of this
title furnish services with respect to initial claims under laws
administered by the Secretary and supplemental claims for such benefits
at no cost to claimants.
``(D)(i) If the total amount payable by a claimant to an agent or
attorney under a fee agreement described in subparagraph (B) exceeds
the amount of any past-due benefits awarded to the claimant pursuant to
the claim associated with such fee agreement, the agent or attorney--
``(I) may not require the claimant to pay such total amount
in a single payment; and
``(II) shall provide the claimant with an option to pay
such total amount in incremental payments.
``(ii) An incremental payment under clause (i) may not exceed the
amount of the monthly increase of benefits awarded to a claimant
pursuant to the claim associated with such fee agreement.
``(E) Effective on October 1 of each year (beginning in the first
fiscal year after the date of the enactment of the Certified Help
Options in Claims Expertise 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.''.
(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. PENALTIES FOR CERTAIN ACTS DURING THE PREPARATION,
PRESENTATION, OR PROSECUTION OF CLAIMS FOR BENEFITS UNDER
LAWS ADMINISTERED BY THE SECRETARY OF VETERANS AFFAIRS.
(a) Penalties for Unauthorized Fees.--
(1) In general.--Section 5905 of title 38, United States
Code, is amended--
(A) in the section heading, by striking ``Penalty''
and inserting ``Penalties'' (and conforming the table
of sections at the beginning of chapter 59 of such
title accordingly);
(B) by striking ``Whoever'' and inserting the
following:
``(a) Withholding of Benefits.--Whoever''; and
(C) by adding at the end the following new
subsections:
``(b) Charging of Unauthorized Fees.--(1) Except as provided in
sections 5904 or 1984 of this title, whoever solicits, contracts for,
charges, or receives, or attempts to solicit, contract for, charge, or
receive, any fee or any other consideration 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.
``(2) Paragraph (1) shall not apply to the provision of a medical
examination or a medical opinion by a third party that does not have a
business relationship with an individual recognized under section 5904
of this title for the preparation, presentation, or prosecution of a
claim for benefits under laws administered by the Secretary.
``(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) violates any law or regulation administered by the
Secretary under this chapter--
``(1) the Secretary shall, after notice, revoke the
conditional and temporary recognition of the individual; and
``(2) such individual shall, after notice and opportunity
for a hearing--
``(A) be fined $50,000; and
``(B) shall be 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 subsection (c)
shall be deposited in the fund established by section 5904(a)(7)(D) of
this title.''.
(2) 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.''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date that is 180 days after the date on which the
Secretary prescribes the regulations required by subsection (b) of
section 3.
(c) Regulations.--Not later than 90 days after the date of the
enactment of this Act, the Secretary, acting through the General
Counsel of the Department of Veterans Affairs, shall prescribe
regulations to define the phrase ``preparation, presentation , or
prosecution'' for purposes of subsection (b) of section 5095 of title
38, United States Code, as added by subsection (a).
SEC. 5. COMPTROLLER GENERAL REVIEW OF PROCESS FOR RECOGNITION OF AGENTS
AND ATTORNEYS FOR PREPARATION, PRESENTATION, AND
PROSECUTION OF CERTAIN CLAIMS UNDER LAWS ADMINISTERED BY
THE SECRETARY.
Not later than one year after the date of the enactment of this
Act, the Comptroller General of the United States shall--
(1) complete a review of the process by which the Secretary
of Veterans Affairs, under section 5904 of title 38, United
States Code, as amended by this Act, recognizes agents and
attorneys for the preparation, presentation, and prosecution of
claims for benefits under laws administered by the Secretary;
and
(2) submit to the Committees on Veterans' Affairs of the
House of Representatives and the Senate a report that
includes--
(A) an identification of deficiencies in the
administration of such section, as amended by this Act;
and
(B) recommendations of the Comptroller General with
respect to legislative or administrative action to
improve the administration of such section, as amended
by this Act.
SEC. 6. PUBLICATION OF INFORMATION WITH RESPECT TO RECOGNITION AS AGENT
OR ATTORNEY FOR PREPARATION, PRESENTATION, AND
PROSECUTION OF CERTAIN CLAIMS UNDER LAWS ADMINISTERED BY
THE SECRETARY; BIENNIAL REVIEW.
(a) Knowledge Test.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs shall publish,
on a publicly-available website of the Department of Veterans Affairs,
and on an on-demand basis, the necessary knowledge test to satisfy the
requirements for recognition under section 5904 of title 38, United
States Code, as amended by this Act.
(b) Continuing Legal Education Requirements.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, the Secretary shall issue
regulations that--
(A) update the continuing legal education
requirements for continued recognition as an agent or
attorney under section 5904 of such title, as amended
by this Act; and
(B) increase the amount of continuing legal
education required for such recognition to an amount
that is greater than the amount of such continuing
legal education required for such recognition as of the
date of the enactment of this Act.
(2) Biennial reviews.--Not later than two years after the
date on which the Secretary issues the regulations required
under paragraph (1), and on a basis not less frequent than
biennially thereafter, the Secretary shall conduct a review of
the continuing legal education requirements for continued
recognition as an agent or attorney under such section, as
amended by this Act.
SEC. 7. FEDERAL PREEMPTION.
This Act, and the amendments made by this Act, supersede any State
law that is inconsistent with the rights established by this Act, or
the amendments made by this Act, 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.
SEC. 8. EXTENSION OF CERTAIN LIMITS ON PAYMENTS OF PENSION.
Section 5503(d)(7) of title 38, United States Code, is amended by
striking ``November 30, 2031'' and inserting ``April 30, 2032''.
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