A bill to amend title 38, United States Code, to reinstate criminal penalties for persons charging veterans unauthorized fees relating to claims for benefits under the laws administered by the Secretary of Veterans Affairs, and for other purposes.
Bill: S.5274 | Sponsor: Sen. Durbin, Richard J. (D-IL)
Policy area: Armed Forces and National Security

Summary:
This bill limits attorneys' fees for claims involving individuals who were exposed to contaminated water at Camp Lejeune in North Carolina between August 1, 1953, and December 31, 1987.
Further, the bill requires an attorney representing an individual for such a claim to disburse the funds of any judgment or award to that individual before collecting any compensation for services rendered.
The bill also establishes certain penalties for (1) a person who solicits, contracts, charges, receives, or attempts such actions with respect to the preparation, presentation, or prosecution of a veterans benefits claim; and (2) any legal representative who charges, demands, receives, or collects for services rendered in connection with certain tort claims or certain claims related to Camp Lejeune.

To amend title 38, United States Code, to reinstate criminal penalties 
for persons charging veterans unauthorized fees relating to 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. REINSTATEMENT OF PENALTIES FOR CHARGING VETERANS 
              UNAUTHORIZED FEES RELATING TO CLAIMS FOR BENEFITS UNDER 
              LAWS ADMINISTERED BY THE SECRETARY OF VETERANS AFFAIRS.

    Section 5905 of title 38, United States Code, is amended--
            (1) 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);
            (2) by striking ``Whoever'' and inserting the following:
    ``(a) Withholding of Benefits.--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 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.''.

SEC. 2. LIMITATION ON ATTORNEY FEES FOR FEDERAL CAUSE OF ACTION 
              RELATING TO WATER AT CAMP LEJEUNE, NORTH CAROLINA.

    Section 804 of the Sergeant First Class Heath Robinson Honoring our 
Promise to Address Comprehensive Toxics Act of 2022 (Public Law 117-
168; 28 U.S.C. 2671 note prec.) is amended by adding at the end the 
following new subsection:
    ``(k) Attorney Fees.--
            ``(1) Limitations.--No legal representative of an 
        individual who brings an action under subsection (b) or who 
        presents a claim under section 2675 of title 28, United States 
        Code, pursuant to subsection (h) shall charge, demand, receive, 
        or collect for services rendered in bringing such action or 
        presenting such claim, fees in excess of--
                    ``(A) 20 percent of an award, compromise, or 
                settlement made or reached within 180 days after 
                presenting a claim under section 2675 of title 28, 
                United States Code, pursuant to subsection (h); and
                    ``(B) 33.3 percent on a claim that is resolved by 
                settlement, compromise, or judgement after the 
                initiation of an action.
            ``(2) Terms for payment of fees.--Any judgment rendered, 
        settlement entered, compromise made, or other award made with 
        respect to an action brought under subsection (b) or a claim 
        presented under section 2675 of title 28, United States Code, 
        pursuant to subsection (h) by a legal representative of an 
        individual shall require the following:
                    ``(A) All funds from the judgment, settlement, 
                compromise, or other award shall be deposited into an 
                account held in trust for the individual in accordance 
                with all applicable provisions of State law.
                    ``(B) The legal representative shall--
                            ``(i) once any funds described in 
                        subparagraph (A) have been deposited into an 
                        account pursuant to such subparagraph, notify 
                        the individual of such deposit; and
                            ``(ii) promptly deliver to such individual 
                        such amount of such funds as the individual is 
                        entitled to receive.
                    ``(C) That no funds shall be paid from the account 
                described in subparagraph (A) to a legal representative 
                of the individual as compensation for services rendered 
                to such individual until the relevant funds from such 
                account have been disbursed to the individual in 
                accordance with subparagraph (B).
            ``(3) Penalties.--
                    ``(A) Fee limitations.--Any legal representative 
                who charges, demands, receives, or collects for 
                services rendered in connection with an action under 
                subsection (b) or a claim under section 2675 of title 
                28, United States Code, pursuant to subsection (h), any 
                amount in excess of that allowed under paragraph (1) of 
                this subsection, if recovery be had, shall be fined not 
                more than $5,000.
                    ``(B) Terms for payment.--Failure of a legal 
                representative subject to paragraph (2) to comply with 
                a requirement of such paragraph shall be punishable 
                consistent with the penalties provided in section 2678 
                of title 28, United States Code.
            ``(4) Rule of construction.--Nothing in this subsection 
        shall be construed to annul, alter, affect, or exempt any 
        person from complying with the laws of any State or locality 
        with respect to the practice of law, except to the extent that 
        those laws are inconsistent with any provision of this 
        subsection, and then only to the extent of the 
        inconsistency.''.
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