Va Fast Letter 07-15-07

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DEPARTMENT OF VETERANS AFFAIRS

Veterans Benefits Administration

Washington, D.C. 20420

June 6, 2007

 

Director (00/21) In Reply Refer To: 211A

All VA Regional Offices and Centers Fast Letter 07-15

 

Subject: Public Law 109-461

 

This letter provides information concerning the new legislation governing the recognition of agents and attorneys representing claimants before VA. Enclosure One provides general answers to questions employees may receive during interviews or when answering telephones.

 

Background

 

On December 22, 2006, the President signed Public Law 109-461. Section 101 of Public Law 109-461, the Veterans Benefits, Health Care, and Information Technology Act of 2006, amends chapter 59 of title 38, United States Code, governing the recognition of individuals for the preparation, presentation, and prosecution of claims for benefits before VA. The provisions shifting the entry point for paid representation are effective on June 20, 2007, and the provisions relating to fee assessments and review of fee agreements are effective upon publication of VA's final rule.

 

Summary of New Legislation

 

Section 101 of Public Law 109-461 makes the following amendments to 38 U.S.C. §§ 5902, 5903, 5904 and 5905:

Eliminates the current prohibition on the charging of fees for services of an attorney or agent provided before the Board of Veterans’ Appeals (Board) makes its first final decision in the case. As amended, section 5904 will allow accredited attorneys and agents to charge fees for services provided after a notice of disagreement (NOD) has been filed with the VA Regional Office (RO) in the case.

Authorizes the Secretary to collect an assessment from an individual recognized as an agent or attorney under section 5904 in any case where VA pays the agent’s or attorney’s fees from past-due benefits owed to a claimant. The amount of the assessment shall be equal to five percent of the amount of the fee paid to the agent or attorney from past-due benefits. The assessment may not exceed $100. An agent or attorney who is charged an assessment may not receive reimbursement for such assessment from the claimant. VA will deposit the amounts collected in an account available for administrative expenses for veterans’ benefits programs.

Authorizes VA to regulate the qualifications and standards of conduct applicable to agents and attorneys.

Adds four additional categories to the list of grounds for suspension or exclusion of agents or attorneys from further practice before VA.

Authorizes VA to review fee agreements between agents or attorneys and claimants and order a reduction in the fee if the Secretary finds that the fee is excessive or unreasonable, although a fee that does not exceed 20 percent of the past due amount of benefits awarded on the claim will be presumed to be reasonable.

Eliminates fee matters as grounds for criminal penalties under 38 U.S.C. § 5905.

Subjects Veterans Service Organization representatives to suspension on the same grounds as apply to agents and attorneys.

 

Regulations

 

VA is amending its regulations governing the representation of claimants for veterans’ benefits in order to implement provisions of Public Law 109-461. VA published its proposed regulations in the Federal Register for notice and comment on May 7, 2007. After the proposed regulations are finalized, we will issue further guidance on the new regulations. Enclosure Two provides interim guidance for adjudicating attorney fee decisions after the entry point for paid representation changes on June 20, 2007, and the date the final regulations are effective.

 

Questions

Questions concerning this fast letter and other issues related to agent and attorney representation should be submitted to the VAVBAWAS/CO/21Q&A mailbox.

 

 

/S/

Bradley G. Mayes, Director

Compensation & Pension Service