Source: https://www.federalregister.gov/articles/2007/10/12/E7-20211/accreditation-of-service-organization-representatives-and-agents
Timestamp: 2015-04-18 11:38:31
Document Index: 377527956

Matched Legal Cases: ['§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 47', '§ 581', 'art 14', 'art 14', 'ART 14', 'art 14', 'art 14', 'art 14', '§ 14', '§ 14', '§ 14']

Federal Register | Accreditation of Service Organization Representatives and Agents
-58013 (5 pages)
Document Number: E7-20211
Shorter URL: https://federalregister.gov/a/E7-20211 Related Topics
Section 14.629(a)—Periodic Recertification of Service Organization Representatives Back to Top
One commenter, a national veterans service organization, requested clarification about proposed § 14.629(a). Specifically, the organization asked whether VA's amendment would require accredited service organization representatives “to take a written examination administered by VA every 5 years as a prerequisite for recertification” as proposed for agents in § 14.629(b)(2). The organization does not support such a requirement for its accredited representatives. Another commenter, a State veterans service organization, expressed similar concern that the rule would impose a new testing requirement for representatives.
It is not VA's intention to impose a new testing requirement for recertification of accredited representatives of service organizations under this rule. Section 14.629(a) outlines the initial accreditation and periodic recertification requirements for accredited representatives of service organizations, and § 14.629(b) provides the requirements for claims agents. To recertify an accredited representative, an organization files a VA Form 21 (Application for Accreditation as Service Organization Representative) with the signature of the certifying official indicating the representative continues to meet the requirements of § 14.629(a)(1) through (3) in that he or she is of good character and reputation, is qualified to represent veterans, meets organizational membership requirements or is a full-time employee of the organization, and is not an employee of the United States Government. The organization may determine for itself the best means to determine the continuing qualifications of its representatives. The service organization's filing of the VA Form 21 is the only requirement for recertification of accredited representatives under § 14.629(a).
Section 14.629(b)—Agents Back to Top
Section 14.633—Suspension of Accreditation Back to Top
Section 14.633—Duty To Inform VA of Misconduct or Incompetence Back to Top
Under current § 14.633(c) and (d), cancellation of accreditation is mandatory if the General Counsel finds that a representative engaged in misconduct or that a representative's performance before the Department demonstrates a lack of the degree of competence necessary to adequately prepare, present, and prosecute claims. However, under current § 14.633(a), service organizations may request cancellation of a representative's accreditation without informing VA of the reason for the request. The amendments to § 14.633(a), which require organizations to report the reason for the request if it involves misconduct or incompetence, will assist VA in monitoring the qualifications of individuals who apply for accreditation or are cross-accredited through more than one recognized organization.
The practice of cross-accreditation is defined in 38 CFR 14.627(i) as “accreditation based on the status of a representative as an accredited and functioning representative of another organization.” Although cross-accreditation enhances claimants' opportunities for representation, it may conceal a representative's misconduct or incompetence absent the amendments to § 14.633(a) in this rule. Consider the situation where a representative, accredited by several organizations, is discharged for an offense at one organization that, if proven, would clearly lead to cancellation of accreditation by VA. If the organization does not report the reason for the discharge to VA when requesting cancellation of the representative's accreditation, the individual's accreditations through other organizations remain valid and the representative may continue to provide representation through those organizations. As a result, an individual who engages in unlawful, unethical or unprofessional acts or is incompetent may continue to represent veterans.
Recent changes in the law governing representation reinforce the obligation of service organizations to report a representative's misconduct or incompetence to VA. As discussed earlier, Public Law 109-461 amended 38 U.S.C. 5904(a) to require VA to regulate the qualifications and standards of conduct applicable to accredited agents and attorneys. Amended section 5902(b)(2) subjects veterans service organization representatives to suspension and exclusion from further practice before VA on the same grounds as apply to agents and attorneys. VA's statutory obligation to regulate the standards of conduct of accredited representatives as reflected in amendments to chapter 59 requires that organizations fulfill the reporting obligations described in § 14.633(a). In May 2007, we published in the Federal Register a notice of proposed rulemaking implementing Public Law 109-461, which, among other things, established standards of conduct for practice before VA applicable to all service organization representatives. 72 FR 25930.
The commenter suggested that “very few individuals would be brought to the attention of the VA” for misconduct or incompetence because it is likely those individuals would resign before any allegations of misconduct or incompetence were ever substantiated. The situation described by the organization is foreseeable under current § 14.633(a) and under the amendments made by this rule. While VA recognizes that individuals may resign before any incompetence or misconduct is substantiated as a means to avoid a formal inquiry, this does not mean that VA should forego any effort to improve the quality of representation in cases where an organization has determined that misconduct or incompetence is sufficient to request cancellation of VA accreditation. With the rule in effect, the organization will be required to inform VA that a request to cancel accreditation under § 14.633(a) is based upon misconduct, incompetence, or resignation to avoid cancellation of accreditation for misconduct or incompetence. Upon receipt of such information, when appropriate, VA will initiate the procedures under 38 CFR 14.633(e) to determine whether the representative should be barred from further representation of VA claimants. As a result, VA, in cooperation with service organizations, will seek to ensure the competent representation of claimants.
VA cannot guarantee immunity from civil suit, nor can it underwrite an organization's potential liability resulting from civil suit. While VA acknowledges the potential for civil liability in a defamation action under state law for disclosure of employment-related information, this is a risk incurred by all employers in providing information about former employees to current or potential employers. The sole purpose of the requirement that service organizations disclose the reason for requesting cancellation of a representative's accreditation is to ensure competent representation of claimants by cancelling accreditation and preventing further accreditation in appropriate cases. In the commenter's jurisdiction, section 47(b) of the California Civil Code provides an absolute privilege for a communication “in any other official proceeding authorized by law.”See CAL. CIV. CODE § 47(b). A “communication to an official administrative agency, which communication is designed to prompt action by that agency” is considered part of an official proceeding. See King v. Borges, 104 Cal. Rptr. 414, 417 (Cal. Ct. App. 1972). Thus, an organization's communication to VA concerning the reasons for requesting cancellation of a representative's accreditation, a communication required by law and designed to prompt action by VA concerning the representative's accreditation through other organizations, is absolutely privileged under California law.
Most States have statutory or common law provisions that establish truth as a defense in defamation actions and protect certain communications as privileged. Communication of accreditation cancellation information to VA by a service organization, without malice, and within accepted limits, would generally be privileged and thus not likely to result in liability for defamation damages. Even in the absence of a privilege, the publication of a true statement by a service organization to VA would not lead to liability for defamation. See Restatement (Second) of Torts § 581A (1977) (“One who publishes a defamatory statement of fact is not subject to liability for defamation if the statement is true.”). Because the nature of defamation liability and privileged communication varies from State to State, VA encourages organizations to seek counsel regarding applicable laws. As an additional protection from liability, organizations should consider making disclosure of accreditation cancellation information to VA a condition of employment by or affiliation with the organization and obtaining prior written authorization from the representative to disclose such information.
List of Subjects in 38 CFR Part 14 Back to Top
For the reasons set forth in the preamble, the Department of Veterans Affairs amends 38 CFR part 14 as follows:
PART 14—LEGAL SERVICES, GENERAL COUNSEL, AND MISCELLANEOUS CLAIMS Back to Top
1.The authority citation for part 14 continues to read as follows: Authority:
5 U.S.C. 301; 28 U.S.C. 2671-2680; 38 U.S.C. 501(a), 512, 515, 5502, 5902-5905; 28 CFR part 14, appendix to part 14, unless otherwise noted.
2.Revise § 14.629(a) introductory text to read as follows: § 14.629 Requirements for accreditation of service organization representatives; agents; and attorneys.
3.Section 14.633(a) is amended by: a. Revising paragraphs (a) and (e)(2)(i).
c. In paragraph (e) introductory text adding “suspension or” before “cancellation”. d. In paragraph (e)(1), removing “and maintain the record for 3 years”.
§ 14.633 Termination of accreditation of agents, attorneys, and representatives.