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: 117-s-5274
Sponsor: full_name: Sen. Durbin, Richard J. [D-IL]
Introduced: 2022-12-15
Policy area: Armed Forces and National Security
Latest action: action_date: 2022-12-15
text: Read twice and referred to the Committee on Veterans' Affairs. (text: CR S7254-7259)

Summaries:
action_date: 2022-12-15
action_desc: Introduced in Senate
text: <p>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.</p> <p>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.</p> <p>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.</p>

tv_txt: II 117th CONGRESS 2d Session S. 5274 IN THE SENATE OF THE UNITED STATES December 15, 2022 Mr. Durbin 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 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.

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. . 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. .