119-hr1656

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1656 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1656

To amend title 38, United States Code, to permit certain fee agreements 
 between claimants and agents or attorneys for the preparations, 
 presentation, or prosecution of initial claims for benefits under the 
 laws administered by the Secretary of Veterans Affairs, and for other 
 purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 February 27, 2025

 Mr. Bergman (for himself, Mr. Correa, Mrs. Miller-Meeks, Mr. Rouzer, 
 Mr. Webster of Florida, Mr. McDowell, Mr. Harrigan, and Mr. Alford) 
 introduced the following bill; which was referred to the Committee on 
 Veterans' Affairs

_______________________________________________________________________

 A BILL

To amend title 38, United States Code, to permit certain fee agreements 
 between claimants and agents or attorneys for the preparations, 
 presentation, or prosecution of initial 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. SHORT TITLE.

 This Act may be cited as the ``Preserving Lawful Utilization of 
Services for Veterans Act of 2025'' or the ``PLUS for Veterans Act of 
2025''.

SEC. 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 by adding 
at the end the following new subsection:
 ``
            (c) Exclusion.--The administration of a medical examination, or 
the completion of a report with respect to such medical examination, as 
described in 

section 5125 of this title, shall not constitute the 
preparation, presentation, or prosecution of a claim under the laws 
administered by the Secretary.''.

SEC. 3. AGENTS AND ATTORNEYS IN CERTAIN CLAIMS UNDER LAWS ADMINISTERED 
 BY SECRETARY OF VETERANS AFFAIRS: APPLICATIONS FOR 
 RECOGNITION; FEES ALLOWABLE FOR REPRESENTATION; GROUNDS 
 FOR SUSPENSION; BARS FROM RECOGNITION.

    (a) In General.--

Section 5904 of title 38, United States Code, is 
amended--

    (1) in subsection

    (a) --
        (A) in paragraph

    (1) --
            (i) by inserting ``
        (A) '' before ``Except''; 
 and
            (ii) by adding at the end the following new 
 subparagraphs:
 ``
        (B)
            (i) An individual desiring recognition under this section 
shall submit to the Secretary an application, including an application 
submitted by mail, fax, or electronic means, in such form, at such 
time, and containing such information and assurances as the Secretary 
has determined appropriate to recognize such individual under this 
section.
 ``
            (ii) If the Secretary cannot verify whether the individual 
satisfies the qualifications and standards prescribed under paragraph

    (2) before the 90-day period beginning after the date on which the 
Secretary receives an application under clause
            (i) , the Secretary shall 
recognize the individual on a conditional and temporary basis for a 
one-year period.
 ``
            (iii) At the end of such one-year period, the Secretary shall 
recognize the individual on a conditional and temporary basis for such 
additional one-year periods until the date on which the Secretary can 
verify whether the individual satisfies such qualifications and 
standards.
 ``
            (C) The Secretary may not suspend, exclude from further practice 
before the Department, fine pursuant to 

section 5905 of this title, or 
refuse to recognize as an agent or attorney under this section any 
individual on the basis that such individual, before the date of the 
enactment of this subparagraph--
 ``
            (i) charged a claimant a fee for services rendered in the 
 preparation, presentation, or prosecution of an initial claim; 
 or
 ``
            (ii) charged a claimant a fee for such services while 
 such individual was not recognized under this section.''; and
        (B) by adding at the end the following new 
 paragraph:
 ``

    (7)
        (A) The Secretary may charge and collect an assessment from an 
individual who--
 ``
            (i) seeks recognition under this section as an agent or 
 attorney for the preparation, presentation, and prosecution of 
 an initial claim under the laws administered by the Secretary; 
 and
 ``
            (ii) charges or collects fees from a claimant for 
 services rendered in such preparation, presentation, and 
 prosecution.
 ``
        (B) An assessment described in subparagraph
        (A) --
 ``
            (i) shall be in such amount as the Secretary prescribes 
 in regulations and determines appropriate; and
 ``
            (ii) may not exceed $500.
 ``
            (C) Amounts collected under this paragraph shall be deposited in 
a revolving fund in the Treasury of the United States. Such amounts 
shall be available to the Secretary for the administration of this 
section.'';

    (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 so 
 redesignated, by inserting ``

    (1) '' before ``The 
 Secretary''; and
            (C) in paragraph

    (1) , as designated by paragraph

    (2) --
            (i) in subparagraph
        (H) , as so 
 redesignated, by striking ``in accordance with 
 subsection
            (c) (3)
        (A) ; or'' and inserting 
 ``subsection
            (c) (2)
        (A) '';
            (ii) in subparagraph
            (I) , as so 
 redesignated, by striking the period at the end 
 and inserting ``; or''; and
            (iii) by adding at the end the following 
 new subparagraph:
 ``
        (J) has failed to keep claimant data and 
 personally identifiable information in accordance with 
 applicable provisions of the Health Insurance 
 Portability and Accountability Act of 1996 (Public Law 
 104-191; 42 U.S.C. 1301 et seq.), including the data 
 security requirements and implementing regulations of 
 such Act.''; and
            (D) 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 2025 
and annually thereafter, the Secretary shall submit to the Committees 
on Veterans' Affairs of the Senate and 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.''; and

    (3) in subsection
            (c) --
        (A) by inserting ``Flat Fee Agreements.--'' after 
 ``
            (c) '';
        (B) by striking paragraph

    (1) and inserting the 
 following:
 ``

    (1)
        (A) In connection with a proceeding before the Department with 
respect to benefits under laws administered by the Secretary, a fee 
agreement between a claimant and an agent or attorney for the 
preparation, presentation, or prosecution of an initial claim for such 
benefits shall be a fee agreement described in subparagraph
        (B) .
 ``
        (B)
            (i) A fee agreement described in this subparagraph is a fee 
agreement--
 ``
            (I) that does not require payment from a claimant to the 
 agent or attorney before the date on which the claimant is 
 provided notice of the agency of original jurisdiction's 
 initial decision under 

section 5104 of this title with respect 
 to the initial claim;
 ``
            (II) under which the total amount payable by the claimant 
 to the agent or attorney with respect to the initial claim--
 ``

    (aa) is contingent on whether the initial claim 
 is resolved in a manner favorable to the claimant;
 ``

    (bb) does not exceed the lesser of--
 ``

    (AA) $12,500 (as adjusted from time to 
 time under subparagraph
            (C) ); or
 ``

    (BB) the amount equal to the product of 
 five and the amount of the monthly increase of 
 benefits awarded to the claimant pursuant to 
 the claim; and
 ``
            (III) that contains an attestation by the claimant that 
 the agent or attorney provided to the claimant the standard 
 form under clause
            (iii) .
 ``
            (ii) For purposes of this subparagraph, an initial claim shall be 
considered to have been resolved in a manner favorable to the claimant 
if all or any part of the relief sought pursuant to the claim is 
granted.
 ``
            (iii) For use in fee agreements described in this subparagraph, 
the Secretary shall develop a standard form that includes the following 
notices:
 ``
            (I) That organizations recognized under 

section 5902 of 
 this title furnish services with respect to initial claims 
 under laws administered by the Secretary at no cost to 
 claimants.
 ``
            (II) That a claimant may select a private physician for a 
 medical examination described in 

section 5125 of this title 
 regarding the initial claim.
 ``
            (III) That the agent or attorney with whom the claimant 
 is entering such fee agreement may not refer the claimant to a 
 private physician described in such section with whom the agent 
 or attorney has a business relationship.
 ``
            (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 2025), 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.''; and
            (C) in paragraph

    (2) --
            (i) by striking ``in a case referred to in 
 paragraph

    (1) of this subsection''; and
            (ii) by inserting ``in a case'' after 
 ``represents a person'';
            (D) in paragraph

    (3)
        (A) , by striking ``paragraph

    (2) '' and inserting ``paragraph

    (1) or

    (2) ''.

    (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.

SEC. 4. 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 heading, by striking ``Penalty'' and inserting 
 ``Penalties'';

    (2) by inserting ``

    (a) Withholding of Benefits.--'' before 
 ``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 the laws administered by the Secretary shall be fined as 
provided in title 18, or imprisoned not more than one year, or both.
 ``
            (c) Violations During Conditional and Temporary Recognition.--If 
an individual recognized as an agent or attorney on a conditional and 
temporary basis pursuant to clause
            (ii) or
            (iii) of 

section 5904

    (a)

    (1)
        (B) of this title violates any law or regulation administered 
by the Secretary under this chapter on or after the date on which such 
individual is so recognized--
 ``

    (1) the Secretary shall, after notice, revoke the 
 conditional and temporary recognition of the individual; and
 ``

    (2) such individual, after notice and opportunity for a 
 hearing, shall be--
 ``
        (A) fined $50,000; and
 ``
        (B) barred from recognition under 

section 5904 of 
 this title--
 ``
            (i) for a period of one year beginning on 
 the date of the first violation; and
 ``
            (ii) for a period of 10 years beginning 
 on the date of each subsequent violation.
 ``
            (d) Deposit of Fines.--Any amount received by the Federal 
Government from a fine imposed under subsection

    (b) or
            (c) shall be 
deposited in the fund established by 

section 5904

    (a)

    (7)
            (C) of this 
title.''.

    (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 on the date that is 90 days after the date on which the 
Secretary prescribes the regulations required by subsection

    (b) of 

section 3.

SEC. 5. FEDERAL PREEMPTION.

 This Act, and the amendments made by this Act, supersede any State 
law that is inconsistent with the statutory rights established by this 
Act, or such amendments, and preclude the implementation of such a law, 
whether statutory, common law, or otherwise, and whether adopted before 
or after the date of enactment of this Act.
 <all>