[Federal Register Volume 68, Number 36 (Monday, February 24, 2003)]
[Rules and Regulations]
[Pages 8541-8547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4203]


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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: Final rule.

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SUMMARY: This document revises the Department of Veterans Affairs' (VA) 
existing procedures and requirements regarding recognition of service 
organizations and accreditation of their representatives and of 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: Effective Date: February 24, 2003.

FOR FURTHER INFORMATION CONTACT: Martin Sendek or Y. Ken Lee, Staff 
Attorneys, Office of the General Counsel (022), Department of Veterans 
Affairs, 810 Vermont Ave., NW., Washington, DC 20420, (202) 273-6315.

SUPPLEMENTARY INFORMATION: On November 4, 1998, VA published a notice 
of proposed rulemaking in the Federal Register. 63 FR 59495. We 
proposed 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 to governing statutes and to enhance VA's 
ability to protect the interests of claimants.
    The public comment period ended on January 4, 1999. VA received 
sixteen comments: six from veterans service organizations, six from 
State departments of veterans affairs, and four from private attorneys. 
These comments are discussed below.
    Based on the rationale set forth in the proposed rule and in this 
document, we adopt the provisions of the proposed rule as a final rule 
with changes explained below.

Section 14.627 Definitions

    One commenter stated that the language ``intends to file'' in the 
definition of ``claimant'' in proposed Sec.  14.627(g) is confusing and 
should be modified because there is no way for the organization to 
ascertain an individual's future intentions. We believe that the 
definition appropriately includes individuals who intend to file an 
application for benefits because representation necessarily includes 
preliminary development and preparation of the application. However, in 
order to alleviate concern that a representative may not be able to 
identify claimants based on their intention, we have amended Sec.  
14.627(g) to provide that a claimant is one who has filed or has 
expressed to a representative, agent, or attorney his or her intention 
to file an application for benefits.
    One commenter requested clarification of the definition of 
``facilities'' under proposed Sec.  14.627(j), but provided no 
explanation of what may be unclear about the proposed definition. We 
find the definition clear in encompassing office equipment and 
furniture that promote efficient office operations, and adjacent 
accommodations, such as parking space,

[[Page 8542]]

needed to facilitate access to office space.

Section 14.628 Recognition of Organizations

    One commenter recommended clarification of the term ``region'' in 
proposed Sec.  14.628(a)(2)(v), for purposes of determining whether an 
organization is sufficiently diversified geographically to qualify as a 
national organization. To clarify this provision and to provide 
objective standards, we changed the ``Geographic diversification'' 
requirement to require either one or more posts, chapters, or offices 
in at least ten states, or one or more members in at least twenty 
states.
    Three commenters expressed concerns regarding the phrase ``funded 
by a State government'' for purposes of determining whether an 
organization qualifies as a State organization as described in proposed 
Sec.  14.628(b). Two commenters asked about the extent to which an 
organization must be funded by a State in order to meet this 
requirement and one also asked whether a local group that receives some 
State funding could qualify. Another commenter suggested that a State 
agency should not be disqualified under this section if it shares 
facilities with a private organization that shares the cost of the 
facilities. To address the stated concerns, we have amended Sec.  
14.628(b) to specify that an organization must be ``primarily'' funded 
by a State in order to qualify under that section.
    In proposed Sec.  14.628(d)(1)(i), we are maintaining the existing 
requirement that an organization requesting recognition demonstrate 
that recognition would benefit veterans. This requirement was 
inadvertently omitted in the proposed amendment to Sec.  14.628.
    One commenter suggested that proposed Sec.  14.628(d)(1)(iv)(A) 
state that State organizations not be required to provide 
representation before the Board of Veterans' Appeals in Washington, DC, 
if claimants are properly notified in writing of this limitation in 
service. We believe that this situation is adequately covered in Sec.  
14.628(d)(1)(iv) as proposed and therefore make no change based on this 
comment.
    One commenter expressed concern that proposed Sec. Sec.  14.627(h) 
and 14.628(d)(1)(iv)(B) could be interpreted as precluding a service 
organization from declining representation in a frivolous claim, a 
claim where a proper representative-client relationship cannot be 
maintained, or a claim where a conflict of interest exists on the part 
of the organization, unless the organization had previously submitted a 
statement of policy pursuant to proposed Sec.  14.628(d)(1)(iv)(B) 
stating its intention with respect to such claims. The commenter stated 
that service organizations should be given the same discretion to 
decline representation as private attorneys have in such instances.
    Another commenter requested clarification of whether, under the 
definition of ``complete claims service'' in proposed Sec.  14.627(h), 
a representative can elect not to join in an administrative appeal. A 
third commenter requested clarification of whether an organization or 
an individual representative may determine whether to provide 
representation in a particular case.
    Pursuant to proposed Sec.  14.628(d)(1)(iv), in order to be 
recognized, an organization must provide complete claims service or 
give written notice of any limitation in its claims service. ``Complete 
claims service'' is defined in Sec.  14.627(h) as including 
representation through completion of an administrative appeal.
    These provisions are intended to ensure that a recognized 
organization maintains a policy and capability of providing each 
claimant with representation throughout the course of a claim and 
administrative appeal or provide written notice of limitations in 
service and advice concerning alternative service. They are not 
intended to limit the organization's discretion to determine whether an 
appeal is appropriate in a particular claim or to decline 
representation in an individual case where the circumstances of the 
case made representation by the organization impracticable or 
inappropriate. So long as an organization has a policy and capability 
of providing complete claims service, the requirement for recognition 
will be met regardless of whether the organization or an individual 
representative of the organization determines that an administrative 
appeal is not appropriate based on the facts and law in an individual 
case and chooses not to participate in the appeal or that based on the 
circumstances of a particular case representation is rendered 
impracticable or inappropriate due to the frivolous nature of the 
claim, the inability to maintain an appropriate representative-claimant 
relationship, or the potential for a conflict of interest on the part 
of the organization if representation is provided. A note has been 
added following Sec.  14.628(d)(1)(iv)(B) to clarify this point.
    One commenter suggested that it may be impossible to adequately 
monitor individual representatives to ``ensure proper handling of 
claims'' as required by proposed Sec.  14.628(d)(1)(v) if claimants are 
permitted under proposed Sec.  14.631(c) to designate a specific 
individual service organization representative as their sole 
representative. The commenter expressed concern that in such a case the 
organization would lack access to records needed to properly monitor 
the claim. Regardless of whether a claimant designates an individual or 
a service organization in a power of attorney, it is a fundamental 
responsibility of an organization to ensure that its representative 
provides appropriate assistance to claimants. Although the option for a 
claimant to designate an individual representative as his or her sole 
representative may present some difficulty to an organization in 
monitoring its representatives, this difficulty could be addressed by 
the organization requiring specific reports from its representatives 
regarding their activities or by the organization requiring its 
representatives to decline individual appointments.
    One commenter asserted that proposed Sec.  14.628(e) creates an 
inequitable if not unlawful situation by providing that only the 
Secretary is authorized to recognize service organizations but that the 
General Counsel is authorized to deny recognition to service 
organizations. The commenter suggested that both powers should reside 
with either the Secretary or the General Counsel. In light of this 
comment, we have determined that the authority to grant or deny 
recognition to an organization should reside with the Secretary and 
have amended Sec.  14.628(e) accordingly.
    We also note that electronic filing, via electronic mail or 
facsimile, of information provided to VA under Sec.  14.628 is 
acceptable.

Section 14.629 Requirements for Accreditation of Service Organization 
Representatives; Agents; and Attorneys

    One commenter argued that the current introductory text of Sec.  
14.629 permitting an ``appropriate'' VA official to appeal a regional 
counsel's determination regarding the qualifications of a service 
organization representative should not be revised by substitution of 
reference to a ``concerned'' VA official, as proposed. The commenter 
suggested that a ``concerned'' official could include one motivated by 
purely personal interests. This change was intended to provide greater 
specificity in the regulation. Further, it cannot be presumed that VA 
officials will take official actions based on improper motives. 
However, to further enhance the specificity of the provision, we have 
revised the introductory text of Sec.  14.629 to refer to

[[Page 8543]]

an appeal by an Adjudication Officer or Service Center Manager.
    Several commenters addressed aspects of the testing requirements in 
proposed Sec. Sec.  14.629(a)(2)(ii) and 14.629(b)(2). These comments 
evidenced a misconception that the examination requirements would apply 
to all service organization representatives. In fact, these 
requirements, which already exist in current regulations, apply 
respectively only to county veterans service officers recommended for 
accreditation by State organizations and to applicants for 
accreditation as claims agents. In light of this misunderstanding, we 
make no change based on these comments.
    One commenter expressed the view that the claims-agent testing 
requirement should be applied to all applicants for accreditation. 
Veterans service organizations generally conduct their own training and 
testing programs or contract for training and testing of the 
representatives in order to assure proper handling of claims. VA is 
aware of no evidence that this system is not working adequately. 
Accordingly, we see no need for imposition of a requirement that all 
applicants for accreditation be tested by VA.
    To promote consistency with regulations and practices governing 
access to Veterans Benefits Administration automated claims records, we 
are adding a note at the end of Sec.  14.629 to clarify that persons 
working under the supervision of a claimant's designated representative 
may qualify for read-only access to the claimant's Veterans Benefits 
Administration automated claims records.

Section 14.631 Powers of Attorney

    One commenter questioned the proposal in proposed Sec.  
14.631(a)(2) to require the submission of a power of attorney to the VA 
``regional office that has jurisdiction over the claim.'' That section 
currently requires that the power of attorney be submitted to the 
``appropriate'' VA office. The commenter argued that the change is 
inconsistent with VA's practice of accepting claims at facilities other 
than regional offices and would require claimants, in certain 
instances, to submit powers of attorney and claims to different 
offices. Based on this comment, we have determined to retain the 
current wording of Sec.  14.631(a)(2).
    The same commenter stated that an additional provision should be 
added to Sec.  14.631(c) permitting a service organization to file with 
VA a notice that it will not allow the appointment of an individual 
accredited representative of the organization as the sole 
representative of a claimant. The commenter stated that the appointment 
of specific representatives would impair the ability of the 
organization to exercise management control over its operations. Two 
other commenters expressed the belief that a claimant should not be 
permitted to appoint an individual representative in a power of 
attorney, as would be permitted under proposed Sec.  14.631(c). 
Proposed Sec.  14.631(c) is intended to reflect the amendment to 38 
U.S.C. 5902(c) made by Public Law 104-275. That statute clearly 
reflects Congress' judgment that a claimant may under certain 
circumstances choose to appoint an individual accredited service 
organization representative as his or her sole representative. We note, 
however, that, notwithstanding the referenced statute, service 
organizations retain management authority over their representatives, 
may direct them not to accept individual appointments, and may request 
cancellation of their accreditation if they fail to follow organization 
policy in this regard. Such matters involve issues of internal service 
organization operations that need not be addressed in the regulations.
    One commenter suggested that, in light of proposed Sec.  14.631(d), 
which permits a service organization or individual named in a 
claimant's power of attorney to decline appointment as a claimant's 
representative, the power-of-attorney form should incorporate an 
acceptance space that must be signed by the accredited representative 
to make the appointment operative. Because recognized service 
organizations are generally expected to provide representation to each 
claimant requesting assistance, we believe it is not unreasonable to 
require service organizations and their representatives to decline an 
appointment by written notification to the claimant and VA. Written 
notification to VA may be submitted via hand delivery, mail, electronic 
mail, or facsimile. Accordingly, we have adopted proposed Sec.  
14.631(d) without change, but have added a note to that provision 
clarifying the acceptable means of submission of notification to VA.

Section 14.633 Termination of Accreditation of Agents, Attorneys, and 
Representatives

    We received numerous comments on various aspects of our proposed 
amendments to Sec.  14.633, governing termination of accreditation. In 
light of these comments, we are undertaking a full reevaluation of that 
section of the regulation and plan to publish a revised proposal 
concerning that provision in the future. Accordingly, we are not 
adopting any changes to Sec.  14.633 at this time.

Section 14.635 Office Space and Facilities

    One commenter stated the belief that an appeal process is needed to 
prevent arbitrary and capricious decisions from being made by VA 
facility directors, who have discretion under proposed Sec.  14.635 to 
withdraw office space and facilities previously granted to an 
organization and to reassign the space to another organization. As 
stated in proposed Sec.  14.635(b), final decisions regarding 
allocation of office space and facilities will be made by the Under 
Secretary for Benefits in the case of a facility under the control of 
the Veterans Benefits Administration. Thus, if any organization feels 
that space has been withdrawn by a facility director in an arbitrary 
manner, the organization may appeal the matter to the Under Secretary. 
This should provide a sufficient safeguard against arbitrary 
decisionmaking. We have added a reference to the regulation to provide 
for final decision by the Under Secretary for Health in the case of a 
facility under the control of the Veterans Health Administration.
    Another commenter suggested that office space currently assigned to 
accredited representatives should not be subject to withdrawal. Under 
38 U.S.C. 5902(a)(2), VA may, on a discretionary basis, furnish space 
and facilities, if available, to organizations engaged in claim 
representation. Guaranteeing space to representatives currently 
occupying such space would interfere with VA's ability to accomplish 
its mission by using its facilities in the most efficient manner. 
Accordingly, we have not adopted this suggestion.

Applicability of Regulations

    Three commenters asked whether the proposed amendments would apply 
to organizations and representatives already recognized or accredited. 
As to organizations, current regulations at 38 CFR 14.628(a)(1) and 
(f), which would not be changed by these amendments, reflect VA's 
understanding that organizations must continue to meet regulatory 
requirements for recognition in order to retain that recognition. 
Existing organizations would be expected to meet the amended 
requirements subsequent to their effective date. However, VA has no 
plans to conduct a review of already-recognized organizations to assure 
compliance with the revised

[[Page 8544]]

requirements. As to individual representatives, those already 
accredited need not reapply for accreditation under the amended 
regulations, nor must new powers of attorney be submitted to replace 
powers of attorney currently in force.

Unfunded Mandates

    The Unfunded Mandates Reform Act requires, at 2 U.S.C. 1532, that 
agencies prepare an assessment of anticipated costs and benefits before 
developing any rule that may result in an expenditure by State, local, 
or tribal governments, in the aggregate, or by the private sector of 
$100 million or more in any given year. This final rule would have no 
consequential effect on State, local, or tribal governments.

Paperwork Reduction Act

    This document contains provisions constituting a collection of 
information at 38 CFR 14.629(b) under the Paperwork Reduction Act (44 
U.S.C. 3501-3521). Accordingly, the Office of Management and Budget 
(OMB) has approved the information collection requirements for Sec.  
14.629(b) and has assigned an OMB control number 2900-0605.

Executive Order 12866

    This document has been reviewed by the Office of Management and 
Budget under Executive Order 12866.

Regulatory Flexibility Act

    The Secretary hereby certifies that adoption of these amendments 
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. Because this action merely clarifies VA's procedures 
concerning the accreditation and recognition of claimant 
representatives, it will not require significant changes in operations 
for those affected by the rule. 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.

    Approved: November 18, 2002.
Anthony J. Principi,
Secretary of Veterans Affairs.

    For the reasons set forth in the preamble, 38 CFR part 14 is 
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), 
512, 515, 5502, 5902-5905, 28 CFR part 14, appendix to part 14, 
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 ensure 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. Section 14.627 is amended by:
    A. Redesignating paragraphs (h), (i), (j), and (k) as paragraphs 
(k), (l), (m), and (n), respectively.
    B. Revising paragraph (g).
    C. Adding new paragraphs (h), (i), and (j).
    D. Adding an authority citation at the end of the section.
    The revision and additions read as follows:


Sec.  14.627  Definitions.

* * * * *
    (g) Claimant means a person who has filed or has expressed to a 
representative, agent, or attorney an intention 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 that promote the 
efficient operation of an office, and adjacent accommodations, which 
are needed to facilitate access to office space.
* * * * *

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



    4. Section 14.628 is amended by:
    A. Revising the paragraph heading in paragraph (c).
    B. Removing paragraph (e).
    C. Redesignating paragraphs (f) and (g) as paragraphs (e) and (f), 
respectively.
    D. Revising paragraphs (a)(2), (b), (d), and newly redesignated 
paragraph (e).
    E. Revising the information collection parenthetical at the end of 
the section.
    The revisions 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., either one or more posts, 
chapters, or offices in at least ten states, or one or more members in 
at least twenty states.
    (b) State organization. An organization created and primarily 
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 establishing the purpose of the organization 
and that veterans would benefit by recognition 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;
    (B) A copy of the articles of incorporation, constitution, charter, 
and

[[Page 8545]]

bylaws of the organization, as appropriate;
    (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 (VA may, in cases where it deems necessary, require 
an audited financial statement); 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) Maintain a policy and capability of providing complete claims 
service to each claimant 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)(1)(iv)(A) and (B) of this section, in 
establishing that it meets this requirement, an organization requesting 
recognition shall submit evidence of its 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.

    Note to Paragraph (d)(1)(iv): An organization may be considered 
to provide complete claims service notwithstanding the exercise of 
discretion to determine that provision of representation in a 
particular case is impracticable or inappropriate because, under the 
circumstances, the facts or law do not support the filing of a claim 
or appeal, an appropriate representative-claimant relationship 
cannot be maintained, or representation would give rise to a 
conflict of interest on the part of the organization.

    (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 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. Only the Secretary is authorized to 
recognize organizations. Notice of the Secretary's determination on a 
request for recognition will be sent to an organization within 90 days 
of receipt of all information to be supplied.
* * * * *

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0439.)

    5. Section 14.629 is amended by:
    A. Revising the section heading and introductory text.
    B. Removing paragraphs (a)(1)(i) through (a)(1)(iii).
    C. Revising paragraph (a) introductory text, paragraph (a)(1), 
paragraph (a)(2)(ii), and the authority citation at the end of 
paragraph (a).
    D. Revising paragraphs (b) and (c).
    E. Revising the information collection parenthetical at the end of 
the section.
    The revisions read as follows:


Sec.  14.629  Requirements for accreditation of service organization 
representatives; agents; and attorneys.

    The Regional Counsel of jurisdiction 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 Department of Veterans Affairs Adjudication Officer 
or Service Center Manager 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 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);

[[Page 8546]]

    (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) Applicants 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.


    Note to Sec.  14.629: A legal intern, law student, paralegal, or 
veterans service organization support-staff person, working under 
the supervision of an individual designated under Sec.  14.631(a) as 
the claimant's representative, attorney, or agent, may qualify for 
read-only access to pertinent Veterans Benefits Administration 
automated claims records.


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


(The Office of Management and Budget has approved the information 
collection requirements in this section under control numbers 2900-
0018 and 2900-0605.)
    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 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 exists unique circumstances which would render 
alternative representation inadequate.

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



    7. Sections 14.631 is amended by:
    A. Revising paragraph (a) introductory text.
    B. Removing paragraphs (c)(3) and (e).
    C. Redesignating paragraphs (b), (c), and (d) as paragraphs (e), 
(f), and (g), respectively.
    D. Revising newly redesignated paragraphs (e), (f)(1), and (g).
    E. Adding paragraphs (b), (c), and (d).
    F. Revising the authority citation at the end of the section.
    The revisions and additions 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:
* * * * *
    (b) An attorney engaged by a client may state in a signed 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 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

[[Page 8547]]

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.


    Note to Sec.  14.631(d): Written notification to VA may be 
submitted via hand delivery, mail, electronic mail, or facsimile.

    (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)

Sec.  14.634  [Amended]

    9. Section 14.634 is amended by removing the Cross References 
paragraph at the end of the section.

    10. Section Sec.  14.635 is amended by:
    A. Revising the introductory text.
    B. Revising paragraph (b), and the authority citation at the end of 
the section.
    C. Removing the Cross References paragraph at the end of the 
section.
    The revisions 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 or the Veterans Health Administration, 
the final decision on such matters will be made by the Under Secretary 
for Benefits or the Under Secretary for Health, respectively.

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


[FR Doc. 03-4203 Filed 2-21-03; 8:45 am]
BILLING CODE 8320-01-P