II 118th CONGRESS 1st Session S. 1789 IN THE SENATE OF THE UNITED STATES June 1, 2023 Mr. Kennedy 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 improve the review of claims for benefits under laws administered by the Secretary of Veterans Affairs.

1. Short title This Act may be cited as the Preserving Lawful Utilization of Services for Veterans Act of 2023 or the PLUS for Veterans Act of 2023 . 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— (1) by striking Except and inserting the following: (a) In general Except ; and (2) by adding at the end the following new subsection: (b) Exclusion The administration of a medical examination, or the writing of a report based on such examination, described in section 5125 of this title, does not constitute the preparation, presentation, or prosecution of a claim described in subsection (a). . 3. Agents and attorneys in claims under laws administered by Secretary of Veterans Affairs: recognition; suspension Section 5904 of title 38, United States Code, is amended— (1) in subsection (a)(1)— (A) by inserting (A) before Except ; and (B) by adding at the end the following new subparagraphs: (B) (i) The Secretary shall determine whether to recognize under subparagraph (A) an agent or attorney who applies for such recognition not later than 90 days after the Secretary receives such application. (ii) If the Secretary cannot verify whether the agent or attorney meets the qualifications and standards prescribed under paragraph (2) before the end of such 90 days, the Secretary shall recognize the agent or attorney under such subparagraph. (C) The Secretary may not refuse to recognize under subparagraph (A) an agent or attorney solely on the basis that such agent or attorney charges a claimant a fee for services rendered in the preparation, presentation, or prosecution of a claim. (D) The Secretary may suspend under subsection (b) an agent or attorney described in subparagraph (E) without regard to the notice and opportunity for a hearing under such subsection. (E) An agent or attorney described in this subparagraph is an agent or attorney— (i) recognized pursuant to subparagraph (B)(ii); and (ii) whom the Secretary determines, after the 90-day period described in such subparagraph, does not meet the qualifications and standards prescribed under paragraph (2). ; and (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 redesignated, by inserting (1) before The Secretary ; and (C) 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 2023 and annually thereafter, the Secretary shall submit to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans' Affairs of the 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. . 4. Fees allowable for representation of veterans for claims under laws administered by Secretary of Veterans Affairs (a) Fees Section 5904 of title 38, United States Code, as amended by section 3, is further amended— (1) in subsection (a)(5), by striking preparation, presentation, and prosecution of a claim before the Department and inserting course of representation described in subsection (c)(2) ; (2) in subsection (c)— (A) in the subsection heading, by inserting Flat fee agreements.— after (c) ; (B) by amending paragraph (1) to read as follows: (1) (A) In a case other than a case described in paragraph (2), a fee agreement between a claimant and an agent or attorney, with respect to the preparation, presentation, or prosecution of a claim under a law administered by the Secretary, shall be a fee agreement under— (i) this paragraph, using a standard agreement form prescribed by the Secretary; (ii) subsection (d); or (iii) subsection (e). (B) A fee agreement under this paragraph is one under which the total amount payable by the claimant to the agent or attorney with respect to the claim— (i) may not exceed $12,500 (as adjusted from time to time under subparagraph (C)); and (ii) is contingent on whether the claim is resolved in a manner favorable to the claimant. (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 2023 ), 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. (D) The limitation under subparagraph (B)(i) does not apply to any fee charged, allowed, or paid for services provided with respect to proceedings before a court. (E) For purposes of subparagraph (B)(ii), a claim shall be considered to have been resolved in a manner favorable to the claimant if all or any part of the relief sought is granted. (F) The form prescribed by the Secretary under subparagraph (A)(i) shall include the following notifications to the claimant: (i) That organizations recognized under section 5902 of this title furnish services concerning claims under laws administered by the Secretary, at no cost to claimants. (ii) That the claimant may select a private physician for a medical examination described in section 5125 of this title regarding the claim. (iii) That such agent or attorney may not refer the claimant to a private physician described in clause (ii) with whom the agent or attorney has a business relationship regarding the claim. ; (C) in paragraph (2), by striking referred to in paragraph (1) of this subsection and inserting regarding a claim under a law administered by the Secretary ; (D) in paragraph (3)(A), by striking to paragraph (2) and inserting to paragraph (1) or (2) ; and (E) by striking paragraph (4); and (3) by adding at the end the following new subsection: (e) Payment of fees out of an award or increased award (1) When a claimant and an agent or attorney have entered into a fee agreement described in paragraph (2), the total fee payable to the agent or attorney (including all ancillary fees) may not exceed the amount that is equal to the product of five and the amount of the monthly increase of benefits awarded on the basis of the claim. (2) A fee agreement referred to in paragraph (1) is one under which the total amount of the fee payable to the agent or attorney— (A) is to be paid to the agent or attorney by the claimant, after commencement of the monthly period of payment of monetary benefits based on an award or increased award (as defined in section 5111(d) of this title); and (B) is contingent on whether the matter is resolved in a manner favorable to the claimant. (3) For the purposes of this subsection, a claim shall be considered to have been resolved in a manner favorable to the claimant if all or any part of the relief sought is granted. . (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. 5. 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 section heading, by striking Penalty and inserting Penalties ; (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 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 a law administered by the Secretary shall be fined as provided in title 18, or imprisoned not more than one year, or both. . (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 one year after the date of the enactment of this Act.