II 

116TH CONGRESS 

1ST SESSION S. 2407 

To amend title 38, United States Code, to provide criminal penalties for 

individuals acting as agents or attorneys for the preparation, presentation, or prosecution of a claim under a law administered by the Secretary of Veterans Affairs without being recognized by the Secretary 

for such purposes, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 31, 2019 

Mr. DAINES introduced the following bill; which was read twice and referred 

to the Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to provide criminal 

penalties for individuals acting as agents or attorneys 

for the preparation, presentation, or prosecution of a 

claim under a law administered by the Secretary of Veterans Affairs without being recognized by the Secretary 

for such purposes, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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•S 2407 IS

1 SECTION 1. IMPROVEMENTS RELATING TO RECOGNITION 

2 BY SECRETARY OF VETERANS AFFAIRS OF 

3 AGENTS AND ATTORNEYS TO REPRESENT 

4 VETERANS. 

5 (a) PENALTIES FOR REPRESENTING WITHOUT REC6 OGNITION BY SECRETARY OF VETERANS AFFAIRS.— 

7 (1) IN GENERAL.—Section 5905 of title 38, 

8 United States Code, is amended to read as follows: 

9 ‘‘§ 5905. Penalty for certain acts 

10 ‘‘Whoever commits any of the following acts shall be 

11 fined as provided in title 18, or imprisoned for not more 

12 than one year, or both: 

13 ‘‘(1) Acts or tries to act as an agent or attorney 

14 for the preparation, presentation, or prosecution of 

15 a claim under a law administered by the Secretary— 

16 ‘‘(A) without recognition by the Secretary 

17 as an agent or attorney under section 5904 of 

18 this title; or 

19 ‘‘(B) while suspended or excluded under 

20 subsection (b) of such section. 

21 ‘‘(2) The act of unlawfully withholding from 

22 any claimant or beneficiary any part of a benefit or 

23 claim under the laws administered by the Secretary 

24 that is allowed and due to the claimant or bene25 ficiary.’’. 


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1 (2) EFFECTIVE DATE.—The amendment made 

2 by paragraph (1) shall apply with respect to acts 

3 committed after the date that is 180 days after the 

4 date of the enactment of this Act. 

5 (b) RENEWAL OF RECOGNITION.—Subsection (a) of 

6 section 5904 of such title is amended by adding at the 

7 end the following new paragraph: 

8 ‘‘(7)(A) Recognition under this section shall be for 

9 such period as the Secretary considers appropriate, but 

10 not for any period greater than five years. 

11 ‘‘(B) The Secretary may, as the Secretary considers 

12 appropriate, renew a recognition of an individual under 

13 this section for a term specified pursuant to subparagraph 

14 (A) upon submittal to the Secretary by the individual of 

15 an application therefor. 

16 ‘‘(C) Upon after receiving an application of an indi17 vidual for renewal under subparagraph (B) and before re18 newing such recognition under such subparagraph, the 

19 Secretary shall review— 

20 ‘‘(i) the preparation, presentation, and prosecu21 tion of claims by the individual covered by this sec22 tion; and 

23 ‘‘(ii) any fee agreements of the individual for 

24 such preparation, presentation, and prosecution that 

25 have been disputed.’’. 


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•S 2407 IS

1 (c) NOTICE RELATING TO FEES.—Subsection (c) of 

2 such section is amended by adding at the end the following 

3 new paragraph: 

4 ‘‘(5)(A) An individual recognized under this section 

5 who enters into a fee agreement with a person to act as 

6 an agent or attorney for the person in a manner covered 

7 by this section shall notify the person of the person’s 

8 rights under this subsection, especially with respect to the 

9 right to make a request under paragraph (3)(A). 

10 ‘‘(B) Notification under this paragraph shall be both 

11 verbal and in writing, with the writing initialed or signed 

12 by the person to acknowledge that the person understands 

13 his or her rights under this subsection.’’. 

14 (d) BIENNIAL REVIEWS BY GENERAL COUNSEL OF

15 THE DEPARTMENT OF VETERANS AFFAIRS.—Such sec16 tion is amended by adding at the end the following new 

17 subsection: 

18 ‘‘(e) BIENNIAL REVIEWS BY GENERAL COUNSEL.— 

19 (1) Not less frequently than once every two years, the 

20 General Counsel of the Department shall submit to Con21 gress a report on activities under this section. 

22 ‘‘(2) Each report submitted under subparagraph (A) 

23 shall include, for the period covered by the report, the fol24 lowing: 


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•S 2407 IS

1 ‘‘(A) A discussion of the rates generally charged 

2 for services covered by this section. 

3 ‘‘(B) A discussion of the requests made by 

4 claimants under subsection (c)(3)(A). 

5 ‘‘(C) A discussion of the fees reduced under 

6 such subsection. 

7 ‘‘(D) The number of claims for benefits under 

8 laws administered by the Secretary that were pre9 pared, presented, or prosecuted by an individual act10 ing as an agent or attorney who did so while not rec11 ognized under this section.’’. 

Æ 


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