Reinstatement of penalties for charging veterans unauthorized fees relating to claims for benefits 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 section heading, by striking Penalty and inserting Penalties; (2) by striking Whoever and inserting the following: (a) Withholding of benefits Whoever; and (3) by adding at the end the following new subsections: (b) Charging of unauthorized fees Except as provided in sections 5904 and 1984 of this title, whoever solicits, contracts for, charges, or receives, or attempts to contract for, charge, or receive, any fee or compensation with respect to the preparation, presentation, or prosecution of any claim for a benefit under laws administered by the Secretary shall be— (1) fined as provided in title 18, or imprisoned not more than one year, or both; and (2) barred from recognition under this chapter by the Secretary as an agent or attorney for the preparation, presentation, or prosecution of a claim under laws administered by the Secretary— (A) for a period of one year beginning on the date of the first violation; and (B) for a period of 10 years beginning on the date of each subsequent violation. (c) Recognition required No person may assist a claimant in the preparation, presentation, or prosecution of a claim under a law administered by the Secretary, unless— (1) recognized by the Secretary under this chapter as an agent or attorney for such purposes; or (2) acting under direct supervision of an agent or attorney described in paragraph (1). (d) Definition of preparation, presentation, or prosecution In this section, the term preparation, presentation, or prosecution — (1) except as provided in paragraph (2), means any act associated with filing a claim or appeal for a benefit under a law administrated by the Secretary; and (2) does not include— (A) the provision of a medical opinion or completion of a disability benefits questionnaire by a private sector medical professional; or (B) the preparation of an expert opinion in support of a claim or appeal.. (b) Proposed rule Not later than 90 days after the date of the enactment of this Act, the General Counsel of the Department of Veterans Affairs shall initiate a rulemaking process for purposes of administering section 5905 of such title and defining preparation, presentation, or prosecution, as amended by subsection (a). (c) Effect on State law The provisions of section 5905, as amended by subsection (a), shall supersede any provisions of the law of any State or Freely Associated State relating to the recognition of an individual as an agent or attorney for the preparation, presentation, or prosecution of a claim under a law administered by the Secretary of Veterans Affairs, including with respect to provisions of law regarding fee agreements or authority to charge for such services. (d) Submission to Congress The Secretary shall include in documents submitted to Congress in support of the President’s budget submitted pursuant to section 1105 of title 31, United States Code, detailed estimates of the sums and staffing necessary to administer chapter 59 of title 38, United States Code. (e) 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 insert the following new item: 5905. Penalties for certain acts..