United States Code Title 38 Section 5904c
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 107-103 Section 603(b)]
[CITE: 38USC5904]
TITLE 38--VETERANS' BENEFITS
PART IV--GENERAL ADMINISTRATIVE PROVISIONS
CHAPTER 59--AGENTS AND ATTORNEYS
Sec. 5904. Recognition of agents and attorneys generally
(a) The Secretary may recognize any individual as an agent or attorney for the preparation, presentation, and prosecution of claims under laws administered by the Secretary. The Secretary may require that individuals, before being recognized under this section, show that they are of good moral character and in good repute, are qualified to render claimants valuable service, and otherwise are competent to assist claimants in presenting claims. (b) The Secretary, after notice and opportunity for a hearing, may suspend or exclude from further practice before the Department any agent or attorney recognized under this section if the Secretary finds that such agent or attorney--
(1) has engaged in any unlawful, unprofessional, or dishonest
practice;
(2) has been guilty of disreputable conduct;
(3) is incompetent;
(4) has violated or refused to comply with any of the laws
administered by the Secretary, or with any of the regulations or
instructions governing practice before the Department; or
(5) has in any manner deceived, misled, or threatened any actual
or prospective claimant.
(c)(1) Except as provided in paragraph (3), in connection with a
proceeding before the Department with respect to benefits under laws administered by the Secretary, a fee may not be charged, allowed, or paid for services of agents and attorneys with respect to services provided before the date on which the Board of Veterans' Appeals first makes a final decision in the case. Such a fee may be charged, allowed, or paid in the case of services provided after such date only if an agent or attorney is retained with respect to such case before the end of the one-year period beginning on that date. The limitation in the preceding sentence does not apply to services provided with respect to proceedings before a court.
(2) A person who, acting as agent or attorney in a case referred to in paragraph (1) of this subsection, represents a person before the Department or the Board of Veterans' Appeals after the Board first makes a final decision in the case shall file a copy of any fee agreement between them with the Board at such time as may be specified by the Board. The Board, upon its own motion or the request of either party, may review such a fee agreement and may order a reduction in the fee called for in the agreement if the Board finds that the fee is excessive or unreasonable. A finding or order of the Board under the preceding sentence may be reviewed by the United States Court of Appeals for Veterans Claims under section 7263(d) of this title.
(3) A reasonable fee may be charged or paid in connection with any proceeding before the Department in a case arising out of a loan made, guaranteed, or insured under chapter 37 of this title. A person who charges a fee under this paragraph shall enter into a written agreement with the person represented and shall file a copy of the fee agreement with the Secretary at such time, and in such manner, as may be specified by the Secretary.
(d)(1) When a claimant and an attorney have entered into a fee agreement described in paragraph (2) of this subsection, the total fee payable to the attorney may not exceed 20 percent of the total amount of any past-due benefits awarded on the basis of the claim.
(2)(A) A fee agreement referred to in paragraph (1) is one under
which the total amount of the fee payable to the attorney--
(i) is to be paid to the attorney by the Secretary directly from
any past-due benefits awarded on the basis of the claim; and
(ii) is contingent on whether or not the matter is resolved in a
manner favorable to the claimant.
(B) For purposes of subparagraph (A) of this paragraph, a claim shall be considered to have been resolved in a manner favorable to the claimant if all or any part of the relief sought is granted.
(3) To the extent that past-due benefits are awarded in any proceeding before the Secretary, the Board of Veterans' Appeals, or the United States Court of Appeals for Veterans Claims, the Secretary may direct that payment of any attorneys' fee under a fee arrangement described in paragraph (1) of this subsection be made out of such past- due benefits. In no event may the Secretary withhold for the purpose of such payment any portion of benefits payable for a period after the date of the final decision of the Secretary, the Board of Veterans' Appeals, or Court of Appeals for Veterans Claims making (or ordering the making of) the award.
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1238, Sec. 3404; Pub. L. 99- 576, title VII, Sec. 701(80), Oct. 28, 1986, 100 Stat. 3298; Pub. L. 100-687, div. A, title I, Sec. 104(a), Nov. 18, 1988, 102 Stat. 4108; renumbered Sec. 5904 and amended Pub. L. 102-40, title IV,
Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-83,
Sec. 4(a)(1), (3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-405;
Pub. L. 102-405, title III, Sec. 303(a), Oct. 9, 1992, 106 Stat. 1985;
Pub. L. 103-446, title V, Sec. 504(a), Nov. 2, 1994, 108 Stat. 4663;
Pub. L. 105-368, title V, Sec. 512(a)(1), Nov. 11, 1998, 112 Stat.
3341.)
Amendments
1998--Subsecs. (c)(2), (d)(3). Pub. L. 105-368 substituted "Court of Appeals for Veterans Claims'' for "Court of Veterans Appeals'' wherever appearing.
1994--Subsec. (d)(2)(A). Pub. L. 103-446 amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "A fee agreement referred to in paragraph (1) of this subsection is one under which (i) the amount of the fee payable to the attorney is to be paid to the attorney by the Secretary directly from any past-due benefits awarded on the basis of the claim, and (ii) the amount of the fee is contingent on whether or not the matter is resolved in a manner favorable to the claimant.''
1992--Subsec. (c)(1). Pub. L. 102-405, Sec. 303(a)(1), substituted "Except as provided in paragraph (3), in'' for "In''.
Subsec. (c)(3). Pub. L. 102-405, Sec. 303(a)(2), added par. (3).
1991--Pub. L. 102-40, Sec. 402(b)(1), renumbered section 3404 of this title as this section.
Subsec. (a). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary'' for "Administrator'' in two places.
Pub. L. 102-83, Sec. 4(a)(1), substituted ``administered by the Secretary'' for "administered by the Veterans' Administration''.
Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary'' for "Administrator'' in two places in introductory provisions.
Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department'' for ``Veterans' Administration'' in introductory provisions and in par. (4).
Pub. L. 102-83, Sec. 4(a)(1), substituted "administered by the Secretary'' for "administered by the Veterans' Administration'' in par.
(4).
Subsec. (c)(1). Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department'' for "Veterans' Administration''.
Pub. L. 102-83, Sec. 4(a)(1), substituted "administered by the Secretary'' for "administered by the Veterans' Administration''.
Subsec. (c)(2). Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department'' for "Veterans' Administration''.
Pub. L. 102-40, Sec. 402(d)(1), substituted "7263(d)'' for "4063(d)''.
Subsec. (d)(2)(A), (3). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary'' for "Administrator'' wherever appearing.
1988--Subsecs. (c), (d). Pub. L. 100-687 added subsecs. (c) and (d) and struck out former subsec. (c) which read as follows: "The Administrator shall determine and pay fees to agents or attorneys recognized under this section in allowed claims for monetary benefits under laws administered by the Veterans' Administration. Such fees--
"(1) shall be determined and paid as prescribed by the
Administrator;"
"(2) shall not exceed $10 with respect to any one claim; and
"(3) shall be deducted from monetary benefits claimed and
allowed.''
1986--Subsec. (b). Pub. L. 99-576 substituted "the Administrator'' for "he'' in introductory text.
Effective Date of 1998 Amendment
Amendment by Pub. L. 105-368 effective on first day of first month beginning more than 90 days after Nov. 11, 1998, see section 513 of Pub. L. 105-368, set out as a note under section 7251 of this title.
Effective Date of 1994 Amendment
Section 504(b) of Pub. L. 103-446 provided that: "The amendment made by subsection (a) [amending this section] shall apply with respect to fee agreements entered into on or after the date of the enactment of this Act [Nov. 2, 1994].''
Effective Date of 1992 Amendment
Section 303(b) of Pub. L. 102-405 provided that: "Paragraph (3) of section 5904(c) of title 38, United States Code, as added by subsection (a), shall apply with respect to services of agents and attorneys provided after the date of the enactment of this Act [Oct. 9, 1992].''
Effective Date of 1988 Amendment
Amendment by Pub. L. 100-687 effective Sept. 1, 1989, see section 401(a) of Pub. L. 100-687, set out as an Effective Date note under section 7251 of this title.
Fee Agreements
Subsec. (d) of this section not to prevent award of fees and expenses under section 2412(d) of Title 28, Judiciary and Judicial Procedure, but subsec. (d) of this section inapplicable to such award where fees for the same work are received under both sections and claimant's attorney refunds to claimant amount of smaller fee, see section 506(c) of Pub. L. 102-572, set out as a note under section 2412 of Title 28.
Applicability to Attorneys Fees
Section 403 of Pub. L. 100-687 provided that: "The amendment to section 3404(c) [now 5904(c)] of title 38, United States Code, made by section 104(a) shall apply only with respect to services of agents and attorneys in cases in which a notice of disagreement is filed with the Veterans' Administration [now Department of Veterans Affairs] on or after the date of the enactment of this division [Nov. 18, 1988].''
Section Referred to in Other Sections
This section is referred to in sections 5905, 7263 of this title.