[Federal Register Volume 63, Number 213 (Wednesday, November 4, 1998)]
[Proposed Rules]
[Pages 59495-59500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29490]


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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.

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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