Penalties for certain acts during the preparation, presentation, or prosecution of claims for benefits under laws administered by the Secretary of Veterans Affairs

(a) Penalties for unauthorized fees (1) In general Section 5905 of title 38, United States Code, is amended— (A) 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); (B) by striking Whoever and inserting the following: (a) Withholding of benefits Whoever; and (C) by adding at the end the following new subsections: (b) Charging of unauthorized fees (1) 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 any other consideration 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. (2) Paragraph (1) shall not apply to the provision of a medical examination or a medical opinion by a third party that does not have a business relationship with an individual recognized under section 5904 of this title for the preparation, presentation, or prosecution of a claim for benefits under laws administered by the Secretary. (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) violates any law or regulation administered by the Secretary under this chapter— (1) the Secretary shall, after notice, revoke the conditional and temporary recognition of the individual; and (2) such individual shall, after notice and opportunity for a hearing— (A) be fined $50,000; and (B) shall be 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 subsection (c) shall be deposited in the fund established by section 5904(a)(7)(D) of this title.. (2) 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.. (b) Effective date The amendments made by this section shall take effect on the date that is 180 days after the date on which the Secretary prescribes the regulations required by subsection (b) of section 3. (c) Regulations Not later than 90 days after the date of the enactment of this Act, the Secretary, acting through the General Counsel of the Department of Veterans Affairs, shall prescribe regulations to define the phrase preparation, presentation, or prosecution for purposes of subsection (b) of section 5095 of title 38, United States Code, as added by subsection (a).