Recognition of Organizations and Accreditation of Representatives, Attorneys, and Agents

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 14

RIN 2900-AI93

Recognition of Organizations and Accreditation of

Representatives, Attorneys, and Agents

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Department of Veterans Affairs (VA) proposes to revise

existing procedures and requirements regarding recognition of service

organizations and accreditation of their representatives and agents,

attorneys, and individuals seeking to represent claimants for benefits

administered by VA. These amendments are necessary to improve clarity

and to enhance VA's ability to assure high quality representation of

claimants.

DATES: Comments must be received on or before January 4, 1999.

ADDRESSES: Mail or hand-deliver written comments to: Director, Office

of Regulations Management (02D), Department of Veterans Affairs, 810

Vermont Ave., NW, Room 1154, Washington, DC 20420. Comments should

indicate that they are submitted in response to ``RIN 2900-AI93.'' All

written comments will be available for public inspection at the above

address in the Office of Regulations Management, Room 1158, between the

hours of 8:00 a.m. and 4:30 p.m., Monday through Friday (except

holidays).

FOR FURTHER INFORMATION CONTACT: Martin J. Sendek, Staff Attorney,

Office of the General Counsel (022C), Department of Veterans Affairs,

810 Vermont Ave., NW, Washington, DC 20420, (202) 273-6330.

SUPPLEMENTARY INFORMATION: We are proposing to make numerous minor

changes in the provisions governing recognition of organizations and

accreditation of representatives, agents, attorneys, and individuals

for purposes of updating, clarification, and conformity and to enhance

VA's ability to protect the interests of claimants.

New definitions of ``complete claims service,'' ``cross-

accreditation,'' and ``facilities'' would be added to Sec. 14.627 to

assist in implementation of other provisions discussed below. The

definition of ``facilities'' would reflect General Counsel opinions

interpreting that term. The definition of ``claimant'' in Sec. 14.627

would be amended to reflect that representation may begin before a

claim is filed.

In Sec. 14.628, minor changes would be made in provisions governing

recognition of ``national,'' ``state,'' and ``other organizations.'' In

order to meet the diversification requirement for recognition as a

``national'' organization, an organization would be required to have a

sizable number of chapters or offices in more than one region of the

country, rather than merely in more than one state, as is currently

required. This would provide better evidence that an organization is

truly ``national'' in the scope of its operations. In the case of

``state'' organizations, the regulation would be amended to require

that the organization not only be created by a state government, as is

currently required, but that it also be funded by the state government.

This change would assure that the organization is in fact affiliated

with and supported by the state government. Also, provisions currently

designated as relating to ``other'' organizations would be given the

more descriptive heading of ``regional or local organization.''

Provisions in Sec. 14.628 pertaining to the qualification of service

organizations for recognition would be condensed and simplified. The

requirements for recognition would be revised to make clear that an

organization seeking recognition must establish that it has adequate

funding to fulfill the representational responsibilities it wishes to

assume. Requirements relating to the provision of complete claims

service would be modified to reflect that certain organizations may not

choose to represent every claimant seeking their assistance and to

assure that the interests of claimants are protected in such cases.

Rules governing the decision to grant or deny recognition would be

simplified and would be revised to make clear that only the Secretary

of Veterans Affairs may grant recognition and that the General Counsel

may deny recognition, subject to appeal to the Secretary.

Provisions pertaining to the accreditation of service organization

representatives in Sec. 14.629(a) would be amended to delete certain

obsolete material relating to the qualifications of representatives.

Provisions pertaining to the accreditation of agents in Sec. 14.629(b)

would be amended to require that applicants for accreditation as agents

use VA Form 21a prescribed by VA for that purpose. The information

required to be submitted on this form would be set forth in the

regulation at proposed Sec. 14.629(b). The information required to be

included on the form is necessary to establish that statutory

eligibility requirements, i.e., good character and reputation, are met.

This change is intended to assure that all necessary information will

be supplied with the application. Section 14.629(b) would also be

simplified by omission of certain provisions pertaining to internal VA

procedures. Further, Sec. 14.629(b) would provide that an applicant

must achieve a score of 75 percent or more on a written examination

administered by VA. We believe this will ensure sufficient proficiency

to represent claimants before this Department.

Provisions in Secs. 14.629 and 14.631 concerning authorization of

representation by attorneys and use of legal interns, law students, and

paralegals would be consolidated and clarified. Provisions governing

attorneys' access to records would be removed from Sec. 14.629(c).

Rules governing access to records are stated in part 1 of title 38,

Code of Federal Regulations, and their duplication in this part is

unnecessary.

Proposed amendments to Sec. 14.630 would incorporate VA's long-

standing interpretation that the authorization to represent a claimant

under that section is available on a one-time-only basis and may not be

used to represent a series of claimants one at a time. The revised

provisions would also specify factors which may be considered by the

General Counsel in determining whether to grant an exception to this

limitation.

The provisions pertaining to powers of attorney in Sec. 14.631

would be modified to reflect a change in the law made by section 508 of

Pub. L. 104-275. Under the revised provision, when a claimant executes

a power of attorney in favor of a representative of a recognized

service organization, unless the claimant indicates otherwise in the

specific manner prescribed in the regulations, the power of attorney

would be considered as designating the whole organization as the

claimant's representative. Also, the regulation would be amended to

reflect that a claimant may select an individual service organization

representative as his or her representative if prescribed procedures

are followed. A provision would be added to make clear that a

representative designated in a power of attorney can decline to accept

the

[[Page 59496]]

appointment and to assure that the claimant and VA are notified of that

action. Current Sec. 14.631(e), dealing with the continuation of the

authority of a power of attorney upon a claimant's death, would be

removed to reflect recent court decisions.

Section 14.632 would be amended to revise obsolete terminology and

to delete provisions relating to internal VA procedures.

Section 14.633(a), regarding termination of accreditation, would be

modified to make clear that accreditation shall be canceled immediately

upon receipt of a request for cancellation from an agent, attorney,

representative, or certifying organization and that cross-accreditation

shall be canceled immediately once the accreditation on which the

cross-accreditation is based is canceled. In order to better inform

representatives of VA's expectations regarding their responsibilities

to claimants, Sec. 14.633(c) would be amended to add failure to keep a

claimant informed of actions taken concerning a claim as an additional

example of conduct warranting disciplinary action. VA regulations are

not intended to define or affect any professional responsibilities of

attorneys as members of the bar.

Section 14.633(e) would be amended to allow a Regional Counsel to

suspend an agent's or attorney's accreditation for misconduct or

incompetence, after an inquiry, pending a decision on termination of

accreditation by the General Counsel. This change would make procedures

applicable to agents and attorneys consistent with those applicable to

representatives and would permit the Department to better protect the

interests of claimants. In recognition of the national practice of

certain claimants' representatives, Sec. 14.633(e) would also be

amended to make clear that a Regional Counsel undertaking an inquiry

concerning the conduct of an agent, attorney, or service organization

representative may request the assistance of another Regional Counsel

as to matters within the latter's area of jurisdiction. Section

14.633(g) would be amended to clarify the actions, including suspension

of accreditation and the issuance of a formal reprimand, which the

General Counsel may take with respect to disciplinary proceedings and

to state procedures for reinstatement of accreditation following

cancellation.

Section 14.635 would be amended to incorporate VA's long-standing

interpretation that free space and facilities may only be provided to

the accredited representatives of recognized national organizations in

buildings owned or occupied by VA. Certain inappropriate cross

references erroneously included after Secs. 14.634 and 14.635 would be

deleted.

Paperwork Reduction Act of 1995

The Office of Management and Budget (OMB) has determined that

proposed 38 CFR 14.629(b) would contain collections of information

under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Accordingly, under section 3507(d) of the Act, VA has submitted a copy

of this rulemaking action to OMB for its review of the collections of

information.

OMB assigns a control number for each collection of information it

approves. VA may not conduct or sponsor, and a person is not required

to respond to, a collection of information unless it displays a

currently valid OMB control number.

Comments on the proposed collections of information should be

submitted to the Office of Management and Budget, Attention: Desk

Officer for the Department of Veterans Affairs, Office of Information

and Regulatory Affairs, Washington, DC 20503, with copies mailed or

hand-delivered to: Director, Office of Regulations Management (02D),

Department of Veterans Affairs, 810 Vermont Ave., NW, Room 1154,

Washington, DC 20420. Comments should indicate that they are submitted

in response to ``RIN 2900-AI93.''

Title: Application for Accreditation as a Claims Agent.

Summary of collection of information: Under the provisions of

proposed Sec. 14.629(b), an individual who wishes to be accredited as a

claims agent to represent claimants before VA would be required to

submit a completed VA Form 21a to VA's Office of General Counsel

(022A), 810 Vermont Ave., NW, Washington, DC 20420. The information

requested on VA Form 21a is set forth at proposed Sec. 14.629(b).

Description of the need for information and proposed use of

information: This information is needed to determine whether an

individual would be eligible to be accredited as a claims agent to

represent claimants before VA.

Description of likely respondents: Individuals who wish to be

accredited as a claims agent to represent claimants before VA.

Estimated number of respondents: 20 per year.

Estimated frequency of responses: 1.

Estimated total annual reporting and recordkeeping burden: 15

hours.

Estimated annual burden per collection: 45 minutes.

The Department considers comments by the public on proposed

collections of information in--

Evaluating whether the proposed collections of information

are necessary for the proper performance of the functions of the

Department, including whether the information will have practical

utility;

Evaluating the accuracy of the Department's estimate of

the burden of the proposed collections of information, including the

validity of the methodology and assumptions used;

Enhancing the quality, usefulness, and clarity of the

information to be collected; and

Minimizing the burden of the collections of information on

those who are to respond, including responses through the use of

appropriate automated, electronic, mechanical, or other technological

collection techniques or other forms of information technology, e.g.,

permitting electronic submission of responses.

OMB is required to make a decision concerning the collection of

information contained in this proposed rule between 30 and 60 days

after publication of this document in the Federal Register. Therefore,

a comment to OMB is best assured of having its full effect if OMB

receives it within 30 days of publication. This does not affect the

deadline for the public to comment on the proposed regulations.

Regulatory Flexibility Act

The Secretary hereby certifies that this regulatory amendment will

not have a significant economic impact on a substantial number of small

entities as they are defined in the Regulatory Flexibility Act, 5

U.S.C. 601-612. The adoption of the proposed changes would not cause

significant changes for those affected by the proposal. Therefore,

pursuant to 5 U.S.C. 605(b), this amendment is exempt from the initial

and final regulatory flexibility analysis requirements of sections 603

and 604.

List of Subjects in 38 CFR Part 14

Administrative practice and procedure, Claims, Courts, Foreign

relations, Government employees, Lawyers, Legal services, Organization

and functions (Government agencies), Reporting and recordkeeping

requirements, Surety bonds, Trusts and trustees, Veterans.

[[Page 59497]]

Approved: July 24, 1998.

Togo D. West, Jr.,

Secretary of Veterans Affairs.

For the reasons set forth in the preamble, 38 CFR part 14 is

proposed to be amended as follows:

PART 14--LEGAL SERVICES, GENERAL COUNSEL

1. The authority citation for part 14 continues to read as follows:

Authority: 5 U.S.C. 301; 28 U.S.C. 2671-2680; 38 U.S.C. 501(a),

5502, 5902-5905, unless otherwise noted.

2. Section 14.626 is revised to read as follows:

Sec. 14.626 Purpose.

The purpose of the regulation of representatives is to assure that

claimants for Department of Veterans Affairs benefits have responsible,

qualified representation in the preparation, presentation, and

prosecution of claims for veterans' benefits.

(Authority: 38 U.S.C. 501(a), 5902, 5903, 5904)

3. In Sec. 14.627, paragraphs (h), (i), (j), and (k) are

redesignated as paragraphs (k), (l), (m), and (n), respectively; and

paragraph (g) is revised and new paragraphs (h), (i), and (j) are

added; and an authority citation is added at the end of the section, to

read as follows:

Sec. 14.627 Definitions.

* * * * *

(g) Claimant means a person who has filed or intends to file a

written application for determination of entitlement to benefits

provided under title 38, United States Code, and implementing

directives.

(h) Complete claims service means representation of each claimant

requesting assistance, from the initiation of a claim until the

completion of any potential administrative appeal.

(i) Cross-accreditation means an accreditation based on the status

of a representative as an accredited and functioning representative of

another organization.

(j) Facilities means equipment and furnishings which promote the

efficient operation of an office and adjacent accommodations use of

which is needed in order to promote access to office space.

* * * * *

(Authority: 38 U.S.C. 501(a), 5902, 5903, 5904)

4. In Sec. 14.628, paragraph (e) is removed; paragraphs (f) and (g)

are redesignated as paragraphs (e) and (f), respectively; and

paragraphs (a)(2), (b), (d), and newly redesignated (e), and the

heading of paragraph (c) are revised to read as follows:

Sec. 14.628 Recognition of organizations.

* * * * *

(a) * * *

(2) It satisfies the following requirements:

(i) Requirements set forth in paragraph (d) of this section,

including information required to be submitted under that paragraph;

(ii) In the case of a membership organization, membership of 2,000

or more persons, as certified by the head of the organization;

(iii) Capability and resources to provide representation to a

sizable number of claimants;

(iv) Capability to represent claimants before the Board of

Veterans' Appeals in Washington, D.C.; and

(v) Geographic diversification, i.e., sizable number of chapters or

offices in more than one region of the country.

(b) State organization. An organization created and funded by a

State government for the purpose of serving the needs of veterans of

that State may be recognized. Only one such organization may be

recognized in each State.

(c) Regional or local organization. * * *

(d) Requirements for recognition. (1) In order to be recognized

under this section, an organization shall meet the following

requirements:

(i) Have as a primary purpose serving veterans. In establishing

that it meets this requirement, an organization requesting recognition

shall submit a statement outlining the purpose of the organization.

(ii) Demonstrate a substantial service commitment to veterans

either by showing a sizable organizational membership or by showing

performance of veterans' services to a sizable number of veterans. In

establishing that it meets this requirement, an organization requesting

recognition shall submit:

(A) The number of members and number of posts, chapters, or offices

and their addresses; and

(B) A copy of the articles of incorporation, constitution, charter,

and bylaws of the organization, as appropriate; and

(C) A description of the services performed or to be performed in

connection with programs administered by the Department of Veterans

Affairs, with an approximation of the number of veterans, survivors,

and dependents served or to be served by the organization in each type

of service designated; and

(D) A description of the type of services, if any, performed in

connection with other Federal and State programs which are designed to

assist former armed forces personnel and their dependents, with an

approximation of the number of veterans, survivors, and dependents

served by the organization under each program designated.

(iii) Commit a significant portion of its assets to veterans'

services and have adequate funding to properly perform those services.

In establishing that it meets this requirement, an organization

requesting recognition shall submit:

(A) A copy of the last financial statement of the organization

indicating the amount of funds allocated for conducting particular

veterans' services; and

(B) A statement indicating that use of the organization's funding

is not subject to limitations imposed under any Federal grant or law

which would prevent it from representing claimants before the

Department of Veterans Affairs.

(iv) Provide complete claims service to each veteran requesting

representation or give written notice of any limitation in its claims

service with advice concerning the availability of alternative sources

of claims service. Except as provided in paragraphs (d)(l)(iv)(A) and

(B) of this section, in establishing that it meets this requirement, an

organization requesting recognition shall submit evidence of capability

to represent claimants before Department of Veterans Affairs regional

offices and before the Board of Veterans' Appeals.

(A) If an organization does not intend to represent claimants

before the Board of Veterans' Appeals, the organization shall submit

evidence of an association or agreement with a recognized service

organization for the purpose of representation before the Board of

Veterans' Appeals, or the proposed method of informing claimants of the

limitations in service that can be provided, with advice concerning the

availability of alternative sources of claims service.

(B) If an organization does not intend to represent each claimant

requesting assistance, the organization shall submit a statement of its

policy concerning the selection of claimants and the proposed method of

informing claimants of this policy, with advice concerning the

availability of alternative sources of claims service.

(v) Take affirmative action, including training and monitoring of

accredited representatives, to ensure proper handling of claims. In

establishing that it meets this requirement, an

[[Page 59498]]

organization requesting recognition shall submit:

(A) A statement of the skills, training, and other qualifications

of current paid or volunteer staff personnel for handling veterans'

claims; and

(B) A plan for recruiting and training qualified claim

representatives, including the number of hours of formal classroom

instruction, the subjects to be taught, the period of on-the-job

training, a schedule or timetable for training, the projected number of

trainees for the first year, and the name(s) and qualifications of the

individual(s) primarily responsible for the training.

(2) In addition, the organization requesting recognition shall

supply:

(i) A statement that neither the organization nor its accredited

representatives will charge or accept a fee or gratuity for service to

a claimant and that the organization will not represent to the public

that Department of Veterans Affairs recognition of the organization is

for any purpose other than claimant representation; and

(ii) The names, titles, and addresses of officers and the

official(s) authorized to certify representatives.

(e) Recognition or denial. A notice of the determination on a

request for recognition will be sent to an organization within 90 days

of receipt of all information to be supplied.

(i) Only the Secretary is authorized to recognize organizations.

(ii) The General Counsel is authorized to deny recognition of

organizations. If the General Counsel denies recognition, the General

Counsel will provide the organization with a notice of that decision,

setting forth an explanation of the reasons for denial of recognition.

A denial of recognition may be appealed to the Secretary within 90 days

of mailing of notice of the denial.

* * * * *

5. In Sec. 14.629, paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii)

are removed; the section heading and introductory text; paragraphs (a)

introductory text, (a)(I), (a)(2)(ii) and the section authority

citation; and paragraphs (b) and (c) are revised, to read as follows:

Sec. 14.629 Requirements for accreditation of service organization

representatives; agents; and attorneys.

The Regional Counsel will resolve any question of current

qualifications of a service organization representative, agent, or

attorney. The claimant, the service organization representative, agent,

or attorney, or an official of the organization for which such person

acts, or a concerned Department of Veterans Affairs official may appeal

such determination to the General Counsel.

(a) Service Organization Representatives. A recognized organization

shall file with the Office of the General Counsel VA Form 21

(Application for Accreditation as Service Organization Representative)

for each person it desires accredited as a representative of that

organization. In recommending a person, the organization shall certify

that the designee:

(1) Is of good character and reputation and has demonstrated an

ability to represent claimants before the Department of Veterans

Affairs;

* * * * *

(2) * * *

(ii) Has successfully completed a course of training and an

examination which have been approved by a VA Regional Counsel with

jurisdiction for the State; and

* * * * *

(Authority: 38 U.S.C. 501(a), 5902)

(b) Agents. (1) An individual desiring accreditation as an agent

must establish that he or she is of good character and reputation and

is qualified to render assistance to claimants in the presentation of

their claim(s). An individual desiring accreditation as an agent must

file a completed application with the Office of the General Counsel on

VA Form 21a on which the applicant submits the following:

(i) His or her full name and business address;

(ii) Information concerning the applicant's military and civilian

employment history (including character of military discharge, if

applicable);

(iii) Information concerning representation provided by the

applicant before any department, agency, or bureau of the Federal

government.

(iv) Information concerning any criminal background of the

applicant;

(v) Information concerning whether the applicant has ever been

determined mentally incompetent or hospitalized as a result of a mental

disease or disability, or is currently under treatment for a mental

disease or disability;

(vi) Information concerning whether the applicant was previously

accredited as a representative of a veterans service organization and,

if so, whether that accreditation was terminated or suspended by or at

the request of that organization;

(vii) The names, addresses, and phone numbers of three character

references; and

(viii) Information relevant to whether or not the applicant has any

physical limitations which would interfere with the completion of a

comprehensive written examination administered under the supervision of

a VA regional counsel.

(2) Applicant's must achieve a score of 75 percent or more on a

written examination administered by VA as a prerequisite to

accreditation. No applicant shall be allowed to sit for the examination

more than twice in any 6 month period.

(Authority: 38 U.S.C. 501(a), 5904)

(c) Attorneys. (1) An attorney may represent a claimant upon

submission of authorization as described in Sec. 14.631(a) or (b).

(2) If the claimant consents in writing, an attorney associated or

affiliated with the claimant's attorney of record or employed by the

same legal services office as the attorney of record may assist in the

representation of the claimant.

(3) A legal intern, law student, or paralegal may not be

independently accredited to represent claimants under this paragraph. A

legal intern, law student, or certified paralegal may assist in the

preparation, presentation, or prosecution of a claim, under the direct

supervision of an attorney of record designated under Sec. 14.631(a) or

(b), if the claimant's written consent is furnished to the Department

of Veterans Affairs. Such consent must specifically state that

participation in all aspects of the claim by a legal intern, law

student, or paralegal furnishing written authorization from the

attorney of record is authorized. In addition, suitable authorization

for access to the claimant's records must be provided in order for such

an individual to participate. The supervising attorney must be present

at any hearing in which a legal intern, law student, or paralegal

participates. (See Sec. 20.606).

(4) Unless revoked by the claimant, consent provided under

paragraph (c)(2) or paragraph (c)(3) of this section shall remain

effective in the event the claimant's original attorney is replaced as

attorney of record by another member of the same law firm or an

attorney employed by the same legal services office.

(The information collection requirements in this section have been

approved by the Office of Management and Budget under control number

2900-0018)

(Authority: 38 U.S.C. 501(a), 5904)

6. Section 14.630 is revised to read as follows:

Sec. 14.630 Authorization for a particular claim.

(a) Any person may be authorized to prepare, present, and prosecute

one

[[Page 59499]]

claim. A proper power of attorney, and a statement signed by the person

and the claimant that no compensation will be charged or paid for the

services, shall be filed with the office where the claim is presented.

A signed writing, which may be in letter form, identifying the claimant

and the type of benefit or relief sought, specifically authorizing a

named individual to act as the claimant's representative, and further

authorizing direct access to records pertinent to the claim, will be

accepted as a power of attorney.

(b) Representation may be provided by an individual pursuant to

this section one time only. An exception to this limitation may be

granted by the General Counsel in unusual circumstances. Among the

factors which may be considered in determining whether an exception

will be granted are:

(1) The number of accredited representatives and claims agents

operating in the claimant's geographic region;

(2) Whether the claimant has unsuccessfully sought representation

from other sources;

(3) The nature and status of the claim; and

(4) Whether there exist unique circumstances which would render

alternative representation inadequate.

(Authority: 38 U.S.C. 501(a), 5903)

7. In Sec. 14.631, paragraphs (c)(3) and (e) are removed;

paragraphs (b), (c), and (d) are redesignated as paragraphs (e), (f),

and (g), respectively; and paragraph (a), introductory text, (a)(2),

and newly redesignated paragraphs (e), (f)(1), and (g) are revised; and

paragraphs (b), (c), and (d) are added, to read as follows:

Sec. 14.631 Powers of attorney.

(a) A power of attorney, executed on either Department of Veterans

Affairs Form 21-22 (Appointment of Veterans Service Organization as

Claimant's Representative) or Department of Veterans Affairs Form 22a

(Appointment of Attorney or Agent as Claimant's Representative), is

required to represent a claimant, except when representation is by an

attorney who complies with paragraph (b) of this section or when

representation by an individual is authorized under Sec. 14.630. The

power of attorney shall meet the following requirements:

* * * * *

(2) Shall be presented to the Department of Veterans Affairs

regional office that has jurisdiction over the claim for filing in the

claimant's claims folder.

(b) An attorney engaged by a client may state in writing on his or

her letterhead that the attorney is authorized to represent the

claimant. This evidence of authorization shall be equivalent to an

executed power of attorney and shall be presented to the Department of

Veterans Affairs regional office that has jurisdiction over the claim

for filing in the claimant's claims folder.

(c) The Secretary may, for any purpose, treat a power of attorney

naming as a claimant's representative an organization recognized under

Sec. 14.628, a particular office of such an organization, or an

individual representative of such an organization as an appointment of

the entire organization as the claimant's representative, unless the

claimant specifically indicates in the power of attorney a desire to

appoint only the individual representative. Such specific indication

must be made in the space on the power-of-attorney form for designation

of the representative and must use the word ``only'' with reference to

the individual representative.

(d) An organization, representative, agent, or attorney named in a

power of attorney executed pursuant to paragraph (a) of this section

may decline to accept appointment as a claimant's representative by so

notifying the claimant and the agency of original jurisdiction in

writing prior to taking any action on the claimant's behalf before the

Department of Veterans Affairs after execution of the power of attorney

by the claimant.

(e) Questions concerning the validity or effect of powers of

attorney shall be referred to the Regional Counsel of jurisdiction for

initial determination. This determination may be appealed to the

General Counsel.

(f)(1) Only one organization, representative, agent, or attorney

will be recognized at one time in the prosecution of a particular

claim. Except as provided in Sec. 14.629(c) and paragraph (f)(2) of

this section, all transactions concerning the claim will be conducted

exclusively with the recognized organization, representative, agent, or

attorney of record until notice of a change, if any, is received by the

appropriate office of the Department of Veterans Affairs.

* * * * *

(g)(1) A power of attorney may be revoked at any time, and an

attorney may be discharged at any time. Unless a claimant specifically

indicates otherwise, the receipt of a new power of attorney shall

constitute a revocation of an existing power of attorney.

(2) If an attorney submits a letter concerning representation under

paragraph (b) of this section regarding a particular claim, or a

claimant authorizes a person to provide representation in a particular

claim under Sec. 14.630, such specific authority shall constitute a

revocation of an existing general power of attorney filed under

paragraph (a) of this section only as it pertains to, and during the

pendency of, that particular claim. Following the final determination

of such claim, the general power of attorney shall remain in effect as

to any new or reopened claim.

(Authority: 38 U.S.C. 501(a), 5902, 5903, 5904)

8. Section 14.632 is revised to read as follows:

Sec. 14.632 Determination of qualifications.

If challenged, the qualifications of prospective representatives or

agents shall be verified by the Regional Counsel of jurisdiction. The

report of the Regional Counsel, if any, including any recommendation of

the Department of Veterans Affairs facility director, and the

application shall be transmitted to the General Counsel for final

action. If the designee is disapproved by the General Counsel, the

reasons will be stated and an opportunity will be given to submit

additional information. If the designee is approved, notification of

accreditation will be issued by the General Counsel or the General

Counsel's designee and will constitute authority to prepare, present,

and prosecute claims in all Department of Veterans Affairs

installations.

(Authority: 38 U.S.C. 501(a), 5902, 5904)

9. In Sec. 14.633, paragraph (e)(2)(ii) is removed; paragraph

(e)(2)(iii) is redesignated as new paragraph (e)(2)(ii); and paragraphs

(a), (b), (c) introductory text, (c)(3), (c)(4), (e) introductory text,

(e)(2)(i) and (g) are revised, to read as follows:

Sec. 14.633 Termination of accreditation of agents, attorneys, and

representatives.

(a)(1) Accreditation shall be canceled at the request of an agent,

attorney, representative, or certifying organization. If an

organization requests cancellation of the accreditation of a

representative it has certified, the organization shall notify the

representative of the request, unless the representative is deceased.

(2) Cross-accreditation shall be canceled when a representative

ceases to be accredited through the organization whose accreditation

created the basis for the cross-accreditation, unless information has

[[Page 59500]]

been provided to the General Counsel indicating that the representative

is independently qualified for accreditation by reason of membership or

employment with the organization through which he or she is cross-

accredited.

(b) Accreditation shall be canceled when the General Counsel finds

that an agent, attorney, or representative no longer meets a

requirement of Sec. 14.629.

(c) Accreditation shall be canceled when the General Counsel finds,

by clear and convincing evidence, one of the following on the part of

an agent, attorney, or representative:

* * * * *

(3) Demanding or accepting unlawful compensation or gratuity for

preparing, presenting, or prosecuting a claim or advising or consulting

a claimant concerning a claim;

(4) Any other unlawful, unprofessional, or unethical practice.

(Unlawful, unprofessional, or unethical practice shall include but not

be limited to the following--deceiving, misleading, or threatening a

claimant; neglecting to prosecute a claim for 6 months or more; failing

to furnish a reasonable response within 90 days of a request for

evidence by the Department of Veterans Affairs; failing to keep a

claimant informed of actions taken concerning his or her claim; or

willfully withholding an application for benefits.)

* * * * *

(e) As to cancellation of accreditation under paragraphs (b), (c),

or (d) of this section, upon receipt of information from any source

indicating failure to meet the requirements of Sec. 14.629, improper

conduct, or incompetence, the Regional Counsel of jurisdiction shall

initiate an inquiry into the matter. If the matter involves an

accredited representative of a recognized organization, this inquiry

shall include contact with the representative's organization. The

Regional Counsel of jurisdiction may request the assistance of another

Regional Counsel as to matters occurring within the latter's area of

jurisdiction.

* * * * *

(2) * * *

(i) Suspend accreditation immediately and notify the agent,

attorney, or representative, and in the case of a representative, the

representative's organization, of the suspension and of an intent to

cancel accreditation. The notice will also state the reason(s) for the

suspension and impending cancellation and inform the party of a right

to request a hearing on the matter or to submit additional evidence

within 10 working days of receipt of such notice. Such time may be

extended for a reasonable period upon showing of sufficient cause.

* * * * *

(g)(1) The General Counsel may cancel accreditation, continue the

existing suspension of accreditation for a specified period, dissolve

the existing suspension, and/or issue a formal reprimand. The decision

of the General Counsel is final. The effective date of cancellation or

suspension of accreditation is the date a final decision is rendered by

the General Counsel. The records of the case will be maintained in the

General Counsel's office for ten years from the date of a final

decision.

(2) A person whose accreditation has been canceled may apply for

reinstatement at any time following the expiration of two years from

the date of cancellation by filing a written request for reinstatement

with the General Counsel.

(i) In the case of an individual seeking reinstatement as a service

organization representative, a recognized organization must file on his

or her behalf VA Form 21 (Application for Accreditation as a Service

Organization Representative). Such an application will be evaluated

subject to the same criteria as are applicable to new applications for

accreditation as a service organization representative, except that

satisfactory proof of good character and reputation will be required in

addition to certification by the service organization.

(ii) An individual requesting reinstatement as a claims agent must

do so by submitting VA Form 21a ``Application for Accreditation as a

Claims Agent.'' Such an application will be evaluated subject to the

same criteria as are applicable to new applications for accreditation

as a claims agent.

(iii) An attorney requesting reinstatement must demonstrate, to the

satisfaction of the General Counsel, that he or she is a licensed

attorney in good standing, is of good character and reputation, is

sufficiently competent to handle VA cases, and will follow the statutes

and regulations applicable to the adjudication of claims and the

representation of claimants before VA.

(3) Reinstatement to full accreditation following cancellation is

subject to a two-year probationary period.

(i) During the probationary period, the accreditation of an

attorney, agent, or representative may be canceled upon a finding by a

Regional Counsel that a preponderance of evidence supports a

determination that the agent, attorney, or representative has engaged

in conduct described in paragraph (c)(1), (2), (3), or (4) of this

section.

(ii) In a proceeding to cancel accreditation during a probationary

period, procedures concerning notice, hearing, and submission of

additional evidence shall be as described in paragraphs (e)(2)(i) and

(f) of this section. The decision by the Regional Counsel is final. The

effective date for cancellation of accreditation shall be the date a

decision is issued by the Regional Counsel. The records of the case

will be forwarded to the General Counsel's office and will be

maintained in that office for ten years from the date of the decision.

* * * * *

Sec. 14.634 [Amended]

10. In Sec. 14.634, the cross references immediately following the

authority citation are removed.

11. In Sec. 14.635, the cross references immediately following the

authority citation are removed; the section introductory text and

paragraph (b), are revised to read as follows:

Sec. 14.635 Office space and facilities.

The Secretary may furnish office space and facilities, if

available, in buildings owned or occupied by the Department of Veterans

Affairs, for the use of paid full-time representatives of recognized

national organizations, and for employees of recognized State

organizations who are accredited to national organizations, for

purposes of assisting claimants in the preparation, presentation, and

prosecution of claims for Department of Veterans Affairs benefits.

* * * * *

(b) When in the judgment of the Director office space and

facilities previously granted could be better used by the Department of

Veterans Affairs, or would receive more effective use or serve more

claimants if allocated to another recognized national organization, the

Director may withdraw such space or reassign such space to another

organization. In the case of a facility under the control of the

Veterans Benefits Administration, the final decision on such matters

will be made by the Under Secretary for Benefits.

(Authority: 38 U.S.C. 501(a), 5902)

[FR Doc. 98-29490 Filed 11-3-98; 8:45 am]

BILLING CODE 8320-01-P