To amend title 38, United States Code, to remove certain limitations on attorney representation of claimants for veterans benefits in administrative proceedings before the Department of Veterans Affairs, and for other purposes.

Summary: Veterans' Choice of Representation Act of 2006 - Authorizes the Secretary of Veterans Affairs to prescribe: (1) qualifications and standards of conduct for agents and attorneys acting on behalf of veterans in claim proceedings before the Department of Veterans Affairs; and (2) restrictions on fees collected for such services.

Adds to the list of reasons for which agents and attorneys may be suspended, including: (1) failure to conduct themselves with due regard for the non-adversarial nature of any proceeding; and (2) presenting frivolous claims, issues, or arguments.

Repeals the current time period limitation for the hiring or paying of an agent or attorney. Revises the time period during which attorney fee agreements may be filed with the Board of Veterans' Appeals. Allows the Secretary to review such an agreement, and order a fee reduction if the Secretary finds the fee excessive or unreasonable.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans' Choice of Representation 
Act of 2006''.

SEC. 2. ATTORNEY REPRESENTATION IN VETERANS BENEFITS CLAIMS CASES 
              BEFORE THE DEPARTMENT OF VETERANS AFFAIRS.

    (a) Qualifications and Standards of Conduct for Individuals 
Recognized as Agents or Attorneys.--
            (1) Additional qualifications and standards for agents and 
        attorneys generally.--Subsection (a) of section 5904 of title 
        38, United States Code, is amended--
                    (A) by inserting ``(1)'' after ``(a)'';
                    (B) by striking the second sentence; and
                    (C) by adding at the end the following new 
                paragraphs:
    ``(2) The Secretary may prescribe in regulations qualifications and 
standards of conduct for individuals recognized under this section, 
including the following:
            ``(A) A requirement that, before being recognized, an 
        individual--
                    ``(i) show that such individual is of good moral 
                character and in good repute, is qualified to render 
                claimants valuable service, and is otherwise competent 
                to assist claimants in presenting claims; and
                    ``(ii) has such level of experience and specialized 
                training as the Secretary shall specify.
            ``(B) A requirement that the individual follow such 
        standards of conduct as the Secretary shall specify.
    ``(3) The Secretary may prescribe in regulations restrictions on 
the amount of fees that an agent or attorney may charge a claimant for 
services rendered in the preparation, presentation, and prosecution of 
a claim before the Department.''.
            (2) Applicability to representatives of veterans service 
        organizations.--Section 5902(b) of such title is amended--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively;
                    (B) by inserting ``(1)'' after ``(b)''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(2) An individual recognized under this section shall be subject 
to suspension under section 5904(b) of this title on the same basis as 
an individual recognized under section 5904(a) of this title.''.
            (3) Applicability to individuals recognized for particular 
        claims.--Section 5903 of such title is amended--
                    (A) by inserting ``(a) In General.--'' before ``The 
                Secretary''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(b) Suspension.--An individual recognized under this section 
shall be subject to suspension under section 5904(b) of this title on 
the same basis as an individual recognized under section 5904(a) of 
this title.''.
    (b) Additional Bases for Suspension of Individuals.--Subsection (b) 
of section 5904 of such title is amended--
            (1) by inserting ``and sections 5902 and 5903 of this 
        title'' after ``under this section'';
            (2) in paragraph (4), by striking ``or'' at the end;
            (3) in paragraph (5), by striking the period and inserting 
        a semicolon; and
            (4) by adding at the end the following new paragraphs:
            ``(6) has failed to conduct himself or herself with due 
        regard for the non-adversarial nature of any proceeding before 
        the Department;
            ``(7) has presented frivolous claims, issues, or arguments 
        to the Department; or
            ``(8) has failed to comply with any other condition 
        specified by the Secretary in regulations prescribed by the 
        Secretary for purposes of this subsection.''.
    (c) Repeal of Limitation on Hiring Agents or Attorneys.--Subsection 
(c) of section 5904 of such title is amended by striking paragraph (1).
    (d) Modification of Requirements to File Attorney Fee Agreements.--
Such subsection is further amended--
            (1) by redesignating paragraph (2) as paragraph (1); and
            (2) in that paragraph, as so redesignated--
                    (A) by striking ``in a case referred to in 
                paragraph (1) of this subsection'';
                    (B) by striking ``after the Board first makes a 
                final decision in the case'';
                    (C) by striking ``with the Board at such time as 
                may be specified by the Board'' and inserting ``with 
                the Secretary pursuant to regulations prescribed by the 
                Secretary''; and
                    (D) by striking the second and third sentences.
    (e) Attorney Fees.--Such subsection is further amended by inserting 
after paragraph (1), as redesignated by subsection (d)(1) of this 
section, the following new paragraph (2):
    ``(2)(A) The Secretary, upon the Secretary's own motion or at the 
request of the claimant, may review a fee agreement filed pursuant to 
paragraph (1) and may order a reduction in the fee called for in the 
agreement if the Secretary finds that the fee is excessive or 
unreasonable.
    ``(B) A finding or order of the Secretary under subparagraph (A) 
may be reviewed by the Board of Veterans' Appeals under section 7104 of 
this title.''.
    (f) Repeal of Penalty for Certain Acts.--Section 5905 of such title 
is amended by striking ``(1)'' and all that follows through ``(2)''.
    (g) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect six months after the date of the enactment of this 
        Act.
            (2) Regulations.--The Secretary shall prescribe the 
        regulations, if any, to be prescribed under the amendments made 
        by subsection (a) not later than the date specified in 
        paragraph (1).
            (3) Claims.--The amendments made by subsections (b), (c), 
        (d), and (e) shall apply to claims submitted on or after the 
        date specified in paragraph (1).