80_FR_81440 80 FR 81191 - Removal of Requirement To File Direct-Pay Fee Agreements With the Office of the General Counsel

80 FR 81191 - Removal of Requirement To File Direct-Pay Fee Agreements With the Office of the General Counsel

DEPARTMENT OF VETERANS AFFAIRS

Federal Register Volume 80, Issue 249 (December 29, 2015)

Page Range81191-81194
FR Document2015-32687

The Department of Veterans Affairs (VA) is amending its regulations concerning the payment of fees for representation by agents and attorneys in proceedings before VA. Specifically, this rule removes the requirement that an agent or attorney file a direct-pay fee agreement with both the VA Office of the General Counsel and the agency of original jurisdiction. The intended effect of this final rule is to require that direct-pay fee agreements be submitted only to the agency of original jurisdiction, thereby eliminating duplicate filings by agents and attorneys.

Federal Register, Volume 80 Issue 249 (Tuesday, December 29, 2015)
[Federal Register Volume 80, Number 249 (Tuesday, December 29, 2015)]
[Rules and Regulations]
[Pages 81191-81194]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32687]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 14

RIN 2900-AP28


Removal of Requirement To File Direct-Pay Fee Agreements With the 
Office of the General Counsel

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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

SUMMARY: The Department of Veterans Affairs (VA) is amending its 
regulations concerning the payment of fees for representation by agents 
and attorneys in proceedings before VA. Specifically, this rule removes 
the requirement that an agent or attorney file a direct-pay fee 
agreement with both the VA Office of the General Counsel and the agency 
of original jurisdiction. The intended effect of this final rule is to 
require that direct-pay fee agreements be submitted only to the agency 
of original jurisdiction, thereby eliminating duplicate filings by 
agents and attorneys.

DATES: Effective Date: This rule is effective December 29, 2015.
    Applicability Date: The provisions of this final rule shall apply 
to all fee agreements transmitted to VA on or after December 29, 2015.

FOR FURTHER INFORMATION CONTACT: Dana Raffaelli, Staff Attorney, Office 
of the General Counsel (022O), Department of Veterans Affairs, 810 
Vermont Avenue NW., Washington, DC 20420, (202) 461-7699. (This is not 
a toll-free telephone number.)

SUPPLEMENTARY INFORMATION: This rule amends 38 CFR part 14 to remove 
the requirement that agents and attorneys file direct-pay fee 
agreements with the VA Office of the General Counsel in Washington, DC. 
Current provisions in 38 CFR 14.636(g) and (h) require agents and 
attorneys to file direct-pay fee agreements with both the Office of the 
General Counsel and the agency of original jurisdiction. Removal of 
this requirement will eliminate administrative burdens associated with 
these direct-pay fee agreements. Agents and attorneys will be relieved 
from filing direct-pay fee agreements with the Office of the General 
Counsel, and the

[[Page 81192]]

Office of the General Counsel will no longer be required to process and 
maintain those fee agreements. In cases where it is necessary for the 
Office of the General Counsel to review fee agreements for 
reasonableness, such agreements may be called to our attention and 
copies of the agreements may be provided to the Office of the General 
Counsel by claimants or the agencies of original jurisdiction.
    Current 38 CFR 14.636(g)(2) and (g)(3) requires agents and 
attorneys to file all fee agreements with the Office of the General 
Counsel in Washington, DC, and to clearly specify in the agreement 
whether VA is to directly pay the agent or attorney fees out of an 
award of past-due benefits. Current 38 CFR 14.636(h)(4) requires agents 
and attorneys to notify the agency of original jurisdiction, within 30 
days of the date of execution of the agreement, of the existence of a 
direct-pay fee agreement and also provide the agency of original 
jurisdiction with a copy of the agreement.
    The requirement that all fee agreements be filed with the Office of 
the General Counsel was established in 2008. See 73 FR 29852, May 22, 
2008. Prior to June 20, 2007, agents and attorneys were required to 
file all fee agreements with the Board of Veterans' Appeals (Board) 
because agents and attorneys could not charge fees for services 
provided to VA claimants until after the Board had first made a final 
decision in the case. See 38 U.S.C. 5904(c)(1), (c)(2) (2002); see also 
38 CFR 20.609(g) (2007). However, on December 22, 2006, Congress 
enacted Public Law 109-461, which allowed agents and attorneys to 
charge fees after the filing of a notice of disagreement in a case and 
required them to file any fee agreements ``with the Secretary pursuant 
to regulations prescribed by the Secretary'' rather than with the 
Board. Public Law 109-461, Sec.  101(d); see 38 U.S.C. 5904(c)(1), 
(c)(2); see also Public Law 109-461, Sec.  101(h) (2006) (amendments to 
statutory fee requirements effective June 20, 2007).
    On May 22, 2008, VA implemented the statutory amendments regarding 
fees in Sec.  14.636 (formerly Sec.  20.609 (2007)), one of which 
directs attorneys and agents to file all fee agreements with the Office 
of the General Counsel in Washington, DC. See 73 FR 29852; 38 CFR 
14.636(g)(3). However, in addition to filing all fee agreements with 
the Office of the General Counsel, Sec.  14.636(h)(4) requires that 
direct-pay fee agreements also be filed with the agency of original 
jurisdiction, so that the agency of original jurisdiction could make an 
initial determination regarding an agent or attorney's eligibility for 
fees following an award of past-due benefits and withhold fees from the 
award when an agent or attorney is found eligible for fees.
    The revisions to Sec.  14.636(g)(3) and (h)(4) eliminate the 
requirement for agents and attorneys to file a direct-pay fee agreement 
with the Office of the General Counsel. Any fee agreement calling for 
the direct payment of fees out of any past-due benefits now must be 
filed only with the agency of original jurisdiction. The agency of 
original jurisdiction is the most appropriate location for such filings 
as that entity must determine when direct payment of fees is called for 
and authorize the correct payment. The agency of original jurisdiction 
will file the fee agreement in the claimant's electronic claims file 
contained in Veterans Benefits Administration's electronic database, 
the Veterans Benefits Management System (VBMS), and associate the 
attorney or agent's Power of Attorney (POA) code--meaning the three 
digit code that was assigned to the attorney or agent at the time of 
his or her VA accreditation--with the claimant's claim file. See M21-1, 
pt. III, ch.3 sec. C.5. The association of attorneys' and agents' POA 
codes with the claimants' files will allow VA to retrieve, from VBMS, a 
list of the claims for which an attorney or agent has entered his or 
her appearance, by filing a VA Form 21-22a, Appointment of Individual 
as Claimant's Representative, with VA. An attorney or agent may look up 
their POA code through the search feature on the accreditation Web 
page's Web site at: http://www.va.gov/ogc/apps/accreditation/index.asp--with the claimant's file.
    Fee agreements that do not provide for the direct payment of fees 
must still be filed with the Office of the General Counsel.
    The Office of the General Counsel retains authority to review all 
fee agreements for reasonableness in light of the services that the 
attorney or agent provided on a claim and the authority to review any 
fee agreement for eligibility that has not undergone review by another 
agency of original jurisdiction. See 38 CFR 14.636(i). In a 
reasonableness-review case involving a direct-pay fee agreement, the 
Office of the General Counsel will obtain a copy of the direct-pay fee 
agreement from the agency of original jurisdiction at which the 
agreement was filed. This will generally be accomplished by retrieving 
the document from VBMS.
    VA also makes an additional conforming amendment to 38 CFR 
14.637(b) to reference fee agreements filed with either the Office of 
the General Counsel or the agency of original jurisdiction under Sec.  
14.636.

Administrative Procedure Act

    This final rule is a procedural rule that does not impose new 
rights, duties, or obligations on affected individuals but, rather, 
eliminates duplicate filings under the statutory requirement that 
agents and attorneys file a copy of a fee agreement ``with the 
Secretary.'' See 38 U.S.C. 5904(c)(2). Therefore, it is exempt from the 
prior notice-and-comment and delayed-effective-date requirements of 5 
U.S.C. 553. See 5 U.S.C. 553(b)(A) and (d)(3). This rule merely removes 
the prior requirement for attorneys and agents to file copies of any 
direct-pay fee agreement with both the Office of the General Counsel 
and the agency of original jurisdiction. Attorneys and agents must now 
file a copy of any direct-pay fee agreement with the agency of original 
jurisdiction and all other fee agreements with the Office of the 
General Counsel.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (at 44 U.S.C. 3507) requires 
that VA consider the impact of paperwork and other information 
collection burdens imposed on the public. Under 44 U.S.C. 3507(a), an 
agency may not collect or sponsor the collection of information, nor 
may it impose an information collection requirement unless it displays 
a currently valid Office of Management and Budget (OMB) control number. 
See also 5 CFR 1320.8(b)(3)(vi).
    Section 14.636 of title 38 of the Code of Federal Regulations 
contains collections of information under the Paperwork Reduction Act 
of 1995, which OMB approved under control number 2900-0605. This final 
rule will amend Sec.  14.636(g)(3) and (h)(4) to remove the requirement 
that an agent or attorney file a direct-pay fee agreement with both the 
Office of the General Counsel and the agency of original jurisdiction, 
i.e., the VA regional office. The intended effect of this amendment is 
to require that direct-pay fee agreements be submitted only to the 
agency of original jurisdiction, thereby eliminating duplicate filings 
by agents and attorneys. As required by the Paperwork Reduction Act of 
1995 (at 44 U.S.C. 3507(d)), VA submitted this amended information 
collection to OMB for its review. OMB approved the amended information 
collection requirements under existing OMB control number 2900-0605.
    We also note that, in 2008, VA did not amend Sec.  14.636 to 
reflect the OMB control number. Therefore, we are also

[[Page 81193]]

amending Sec.  14.636 to reflect that the correct OMB control number is 
2900-0605.

Regulatory Flexibility Act

    The initial and final regulatory flexibility analyses requirements 
of sections 603 and 604 of the Regulatory Flexibility Act, 5 U.S.C. 
601-612, are not applicable to this rule, because a notice of proposed 
rulemaking is not required for this rule. Even so, the Secretary hereby 
certifies that this final rule will not have a significant economic 
impact on a substantial number of small entities as they are defined in 
the Regulatory Flexibility Act. At a minimum, this rule will affect 
only the attorneys and agents who file fee agreements with the Office 
of the General Counsel. However, it will not have a significant 
economic impact on these individuals, as it will result in modest 
savings for affected attorneys and agents who will avoid the expense of 
duplicate filings. Therefore, pursuant to 5 U.S.C. 605(b), this 
rulemaking is exempt from the initial and final regulatory flexibility 
analysis requirements of sections 603 and 604.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 12866 (Regulatory Planning and Review) defines a 
``significant regulatory action,'' requiring review by OMB, unless OMB 
waives such review, as ``any regulatory action that is likely to result 
in a rule that may: (1) Have an annual effect on the economy of $100 
million or more or adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order.''
    The economic, interagency, budgetary, legal, and policy 
implications of this final rule have been examined, and it has been 
determined not to be a significant regulatory action under Executive 
Order 12866. VA's impact analysis can be found as a supporting document 
at http://www.regulations.gov, usually within 48 hours after the 
rulemaking document is published. Additionally, a copy of the 
rulemaking and its impact analysis are available on VA's Web site at 
http://www.va.gov/orpm/, by following the link for VA Regulations 
Published From FY 2004 to FYTD.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This final rule will have no such effect on 
State, local, and tribal governments, or on the private sector.

Catalog of Federal Domestic Assistance

    There are no Federal Domestic Assistance programs associated with 
this final rule.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Robert L. 
Nabors II, Chief of Staff, Department of Veterans Affairs, approved 
this document on December 22, 2015, for publication.

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.

    Dated: December 23, 2015.
William F. Russo
Director, Office of Regulation Policy & Management, Office of the 
General Counsel, Department of Veterans Affairs.
    For the reasons set out in the preamble, the Department of Veterans 
Affairs amends 38 CFR part 14 as follows:

PART 14--LEGAL SERVICES, GENERAL COUNSEL, AND MISCELLANEOUS CLAIMS

0
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, 5901-5905; 28 CFR part 14, appendix to part 14, 
unless otherwise noted.


0
2. Amend Sec.  14.636 by:
0
a. Revising paragraph (g)(3).
0
b. Revising paragraph (h)(4).
0
c. Revising the parenthetical at the end of the section.
    The revisions read as follows:


Sec.  14.636  Payment of fees for representation by agents and 
attorneys in proceedings before Agencies of Original Jurisdiction and 
before the Board of Veterans' Appeals.

* * * * *
    (g) * * *
    (3) A copy of a direct-pay fee agreement, as defined in paragraph 
(g)(2) of this section, must be filed with the agency of original 
jurisdiction within 30 days of its execution. A copy of any fee 
agreement that is not a direct-pay fee agreement must be filed with the 
Office of the General Counsel within 30 days of its execution by 
mailing the copy to the following address: Office of the General 
Counsel (022D), Department of Veterans Affairs, 810 Vermont Avenue NW., 
Washington, DC 20420. Only fee agreements that do not provide for the 
direct payment of fees, documents related to review of fees under 
paragraph (i) of this section, and documents related to review of 
expenses under Sec.  14.637, may be filed with the Office of the 
General Counsel. All documents relating to the adjudication of a claim 
for VA benefits, including any correspondence, evidence, or argument, 
must be filed with the agency of original jurisdiction, Board of 
Veterans' Appeals, or other VA office as appropriate.
    (h) * * *
    (4) As required by paragraph (g)(3) of this section, the agent or 
attorney must file with the agency of original jurisdiction within 30 
days of the date of execution a copy of the agreement providing for the 
direct payment of fees out of any benefits subsequently determined to 
be past due.
* * * * *
    (The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0605.)

[[Page 81194]]

Sec.  14.637  [Amended]

0
3. Amend Sec.  14.637, paragraph (b), by removing ``under Sec.  
14.636'' and adding, in its place, ``or the agency of original 
jurisdiction under Sec.  14.636''.

[FR Doc. 2015-32687 Filed 12-28-15; 8:45 am]
 BILLING CODE 8320-01-P



                                                                 Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / Rules and Regulations                                            81191

                                                FURTHER INFORMATION CONTACT             section           Authority: 33 U.S.C. 1231; 50 U.S.C. 191;           enforcement will cease immediately
                                                above.                                                  33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5;             upon conditions returning to safe levels.
                                                                                                        Department of Homeland Security Delegation
                                                E. Unfunded Mandates Reform Act                         No. 0170.1.                                              Dated: December 6, 2015.
                                                                                                                                                              J.F. Williams,
                                                  The Unfunded Mandates Reform Act                      ■ 2. Add § 165.T11–750 to read as                     Captain, U.S. Coast Guard, Captain of the
                                                of 1995 (2 U.S.C. 1531–1538) requires                   follows:                                              Port Los Angeles—Long Beach.
                                                Federal agencies to assess the effects of
                                                                                                        § 165.T11–750 Safety Zone; Morro Bay                  [FR Doc. 2015–32734 Filed 12–28–15; 8:45 am]
                                                their discretionary regulatory actions. In
                                                particular, the Act addresses actions                   Breaking Bar; Morro Bay Harbor Entrance;              BILLING CODE 9110–04–P

                                                that may result in the expenditure by a                 Morro Bay, CA.
                                                State, local, or tribal government, in the                (a) Location. The following area is a
                                                aggregate, or by the private sector of                  safety zone: All navigable waters of the              DEPARTMENT OF VETERANS
                                                $100,000,000 (adjusted for inflation) or                Morro Bay Harbor Entrance in                          AFFAIRS
                                                more in any one year. Though this rule                  approximate coordinates: from a point
                                                will not result in such an expenditure,                 on the shoreline at 35°22.181′ N.                     38 CFR Part 14
                                                we do discuss the effects of this rule                  120°52.207′ W., thence westward to                    RIN 2900–AP28
                                                elsewhere in this preamble.                             35°22.181′ N. 120°52.538′ W., thence
                                                                                                        southward to 35°21.367′ N. 120°52.538′                Removal of Requirement To File
                                                F. Environment                                          W., thence eastward to a point on the                 Direct-Pay Fee Agreements With the
                                                  We have analyzed this rule under                      shoreline at 35°21.366′ N. 120°51.717′                Office of the General Counsel
                                                Department of Homeland Security                         W., thence northward along the                        AGENCY:    Department of Veterans Affairs.
                                                Management Directive 023–01 and                         shoreline to a point inside the Morro
                                                Commandant Instruction M16475.lD,                                                                             ACTION:   Final rule.
                                                                                                        Bay Harbor to 35°22.153′ N. 120°51.698′
                                                which guide the Coast Guard in                          W., thence northwestward to a point on                SUMMARY:    The Department of Veterans
                                                complying with the National                             land at 35°22.233′ N. 120°51.847′ W.,                 Affairs (VA) is amending its regulations
                                                Environmental Policy Act of 1969 (42                    thence southward along the shoreline to               concerning the payment of fees for
                                                U.S.C. 4321–4370f), and have                            the beginning. These coordinates are                  representation by agents and attorneys
                                                determined that this action is one of a                 based on North American Datum of                      in proceedings before VA. Specifically,
                                                category of actions that do not                         1983.                                                 this rule removes the requirement that
                                                individually or cumulatively have a                       (b) Definitions. For the purposes of                an agent or attorney file a direct-pay fee
                                                significant effect on the human                         this section:                                         agreement with both the VA Office of
                                                environment. This rule is categorically                   Designated representative means a                   the General Counsel and the agency of
                                                excluded from further review under                      Coast Guard Patrol Commander,                         original jurisdiction. The intended effect
                                                paragraph 34(g) of Figure 2–1 of the                    including a Coast Guard coxswain, petty               of this final rule is to require that direct-
                                                Commandant Instruction. An                              officer, or other officer operating a Coast           pay fee agreements be submitted only to
                                                environmental analysis checklist                        Guard vessel and a Federal, State, and                the agency of original jurisdiction,
                                                supporting this determination and a                     local officer designated by or assisting              thereby eliminating duplicate filings by
                                                Categorical Exclusion Determination are                 the Captain of the Port Los Angeles—                  agents and attorneys.
                                                available in the docket where indicated                 Long Beach (COTP) in the enforcement                  DATES: Effective Date: This rule is
                                                under ADDRESSES. We seek any                            of the safety zone.                                   effective December 29, 2015.
                                                comments or information that may lead                     Rough Bar means any swell, breaking                    Applicability Date: The provisions of
                                                to the discovery of a significant                       surf, or wind conditions that create                  this final rule shall apply to all fee
                                                environmental impact from this rule.                    safety hazards. This includes but is not              agreements transmitted to VA on or after
                                                G. Protest Activities                                   limited to, breaking surf 8 feet of greater           December 29, 2015.
                                                                                                        or extreme steep or confused swell in                 FOR FURTHER INFORMATION CONTACT:
                                                  The Coast Guard respects the First                    the main channel or in the judgment of                Dana Raffaelli, Staff Attorney, Office of
                                                Amendment rights of protesters.                         the COTP or the COTP’s designated                     the General Counsel (022O), Department
                                                Protesters are asked to contact the                     representative rough conditions exist.                of Veterans Affairs, 810 Vermont
                                                person listed in the FOR FURTHER
                                                                                                          (c) Regulations. (1) Under the general              Avenue NW., Washington, DC 20420,
                                                INFORMATION CONTACT section to
                                                                                                        safety zone regulations in subpart C of               (202) 461–7699. (This is not a toll-free
                                                coordinate protest activities so that your
                                                                                                        this part, you may not enter the safety               telephone number.)
                                                message can be received without
                                                                                                        zone described in paragraph (a) of this               SUPPLEMENTARY INFORMATION: This rule
                                                jeopardizing the safety or security of
                                                                                                        section unless authorized by the COTP                 amends 38 CFR part 14 to remove the
                                                people, places or vessels.
                                                                                                        or the COTP’s designated representative.              requirement that agents and attorneys
                                                List of Subjects in 33 CFR Part 165                        (2) To seek permission to enter, hail              file direct-pay fee agreements with the
                                                  Harbors, Marine safety, Navigation                    Coast Guard Station Morro Bay on VHF–                 VA Office of the General Counsel in
                                                (water), Reporting and recordkeeping                    FM Channel 16 or call at (805) 772–                   Washington, DC. Current provisions in
                                                requirements, Security measures,                        2167. Those in the safety zone must                   38 CFR 14.636(g) and (h) require agents
                                                Waterways.                                              comply with all lawful orders or                      and attorneys to file direct-pay fee
                                                                                                        directions given to them by the COTP or               agreements with both the Office of the
                                                  For the reasons discussed in the
                                                                                                        the COTP’s designated representative.                 General Counsel and the agency of
                                                preamble, the Coast Guard amends 33
jstallworth on DSK7TPTVN1PROD with RULES




                                                                                                           (d) Enforcement period. This rule is               original jurisdiction. Removal of this
                                                CFR part 165 as follows:
                                                                                                        effective from 12:01 a.m. December 9,                 requirement will eliminate
                                                PART 165—REGULATED NAVIGATION                           2015 until February 29, 2016 11:59 p.m.               administrative burdens associated with
                                                AREAS AND LIMITED ACCESS AREAS                          The safety zone will only be enforced                 these direct-pay fee agreements. Agents
                                                                                                        when the COTP or her designated                       and attorneys will be relieved from
                                                ■ 1. The authority citation for part 165                representative deems it necessary                     filing direct-pay fee agreements with the
                                                continues to read as follows:                           because of the rough bar conditions, and              Office of the General Counsel, and the


                                           VerDate Sep<11>2014   15:24 Dec 28, 2015   Jkt 238001   PO 00000   Frm 00033   Fmt 4700   Sfmt 4700   E:\FR\FM\29DER1.SGM   29DER1


                                                81192            Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / Rules and Regulations

                                                Office of the General Counsel will no                   an agent or attorney’s eligibility for fees           filed with either the Office of the
                                                longer be required to process and                       following an award of past-due benefits               General Counsel or the agency of
                                                maintain those fee agreements. In cases                 and withhold fees from the award when                 original jurisdiction under § 14.636.
                                                where it is necessary for the Office of                 an agent or attorney is found eligible for
                                                                                                                                                              Administrative Procedure Act
                                                the General Counsel to review fee                       fees.
                                                agreements for reasonableness, such                        The revisions to § 14.636(g)(3) and                  This final rule is a procedural rule
                                                agreements may be called to our                         (h)(4) eliminate the requirement for                  that does not impose new rights, duties,
                                                attention and copies of the agreements                  agents and attorneys to file a direct-pay             or obligations on affected individuals
                                                may be provided to the Office of the                    fee agreement with the Office of the                  but, rather, eliminates duplicate filings
                                                General Counsel by claimants or the                     General Counsel. Any fee agreement                    under the statutory requirement that
                                                agencies of original jurisdiction.                      calling for the direct payment of fees out            agents and attorneys file a copy of a fee
                                                   Current 38 CFR 14.636(g)(2) and (g)(3)               of any past-due benefits now must be                  agreement ‘‘with the Secretary.’’ See 38
                                                requires agents and attorneys to file all               filed only with the agency of original                U.S.C. 5904(c)(2). Therefore, it is
                                                fee agreements with the Office of the                   jurisdiction. The agency of original                  exempt from the prior notice-and-
                                                General Counsel in Washington, DC,                      jurisdiction is the most appropriate                  comment and delayed-effective-date
                                                and to clearly specify in the agreement                 location for such filings as that entity              requirements of 5 U.S.C. 553. See 5
                                                whether VA is to directly pay the agent                 must determine when direct payment of                 U.S.C. 553(b)(A) and (d)(3). This rule
                                                or attorney fees out of an award of past-               fees is called for and authorize the                  merely removes the prior requirement
                                                due benefits. Current 38 CFR                            correct payment. The agency of original               for attorneys and agents to file copies of
                                                14.636(h)(4) requires agents and                        jurisdiction will file the fee agreement              any direct-pay fee agreement with both
                                                attorneys to notify the agency of original              in the claimant’s electronic claims file              the Office of the General Counsel and
                                                jurisdiction, within 30 days of the date                contained in Veterans Benefits                        the agency of original jurisdiction.
                                                of execution of the agreement, of the                   Administration’s electronic database,                 Attorneys and agents must now file a
                                                existence of a direct-pay fee agreement                 the Veterans Benefits Management                      copy of any direct-pay fee agreement
                                                and also provide the agency of original                 System (VBMS), and associate the                      with the agency of original jurisdiction
                                                jurisdiction with a copy of the                         attorney or agent’s Power of Attorney                 and all other fee agreements with the
                                                agreement.                                              (POA) code—meaning the three digit                    Office of the General Counsel.
                                                   The requirement that all fee                         code that was assigned to the attorney                Paperwork Reduction Act
                                                agreements be filed with the Office of                  or agent at the time of his or her VA
                                                the General Counsel was established in                  accreditation—with the claimant’s claim                  The Paperwork Reduction Act of 1995
                                                2008. See 73 FR 29852, May 22, 2008.                    file. See M21–1, pt. III, ch.3 sec. C.5.              (at 44 U.S.C. 3507) requires that VA
                                                Prior to June 20, 2007, agents and                      The association of attorneys’ and agents’             consider the impact of paperwork and
                                                attorneys were required to file all fee                 POA codes with the claimants’ files will              other information collection burdens
                                                agreements with the Board of Veterans’                  allow VA to retrieve, from VBMS, a list               imposed on the public. Under 44 U.S.C.
                                                Appeals (Board) because agents and                      of the claims for which an attorney or                3507(a), an agency may not collect or
                                                attorneys could not charge fees for                     agent has entered his or her appearance,              sponsor the collection of information,
                                                services provided to VA claimants until                 by filing a VA Form 21–22a,                           nor may it impose an information
                                                after the Board had first made a final                  Appointment of Individual as                          collection requirement unless it
                                                decision in the case. See 38 U.S.C.                     Claimant’s Representative, with VA. An                displays a currently valid Office of
                                                5904(c)(1), (c)(2) (2002); see also 38 CFR              attorney or agent may look up their POA               Management and Budget (OMB) control
                                                20.609(g) (2007). However, on December                  code through the search feature on the                number. See also 5 CFR 1320.8(b)(3)(vi).
                                                22, 2006, Congress enacted Public Law                   accreditation Web page’s Web site at:                    Section 14.636 of title 38 of the Code
                                                109–461, which allowed agents and                       http://www.va.gov/ogc/apps/                           of Federal Regulations contains
                                                attorneys to charge fees after the filing               accreditation/index.asp—with the                      collections of information under the
                                                of a notice of disagreement in a case and               claimant’s file.                                      Paperwork Reduction Act of 1995,
                                                required them to file any fee agreements                   Fee agreements that do not provide                 which OMB approved under control
                                                ‘‘with the Secretary pursuant to                        for the direct payment of fees must still             number 2900–0605. This final rule will
                                                regulations prescribed by the Secretary’’               be filed with the Office of the General               amend § 14.636(g)(3) and (h)(4) to
                                                rather than with the Board. Public Law                  Counsel.                                              remove the requirement that an agent or
                                                109–461, § 101(d); see 38 U.S.C.                           The Office of the General Counsel                  attorney file a direct-pay fee agreement
                                                5904(c)(1), (c)(2); see also Public Law                 retains authority to review all fee                   with both the Office of the General
                                                109–461, § 101(h) (2006) (amendments                    agreements for reasonableness in light of             Counsel and the agency of original
                                                to statutory fee requirements effective                 the services that the attorney or agent               jurisdiction, i.e., the VA regional office.
                                                June 20, 2007).                                         provided on a claim and the authority                 The intended effect of this amendment
                                                   On May 22, 2008, VA implemented                      to review any fee agreement for                       is to require that direct-pay fee
                                                the statutory amendments regarding fees                 eligibility that has not undergone review             agreements be submitted only to the
                                                in § 14.636 (formerly § 20.609 (2007)),                 by another agency of original                         agency of original jurisdiction, thereby
                                                one of which directs attorneys and                      jurisdiction. See 38 CFR 14.636(i). In a              eliminating duplicate filings by agents
                                                agents to file all fee agreements with the              reasonableness-review case involving a                and attorneys. As required by the
                                                Office of the General Counsel in                        direct-pay fee agreement, the Office of               Paperwork Reduction Act of 1995 (at 44
                                                Washington, DC. See 73 FR 29852; 38                     the General Counsel will obtain a copy                U.S.C. 3507(d)), VA submitted this
                                                CFR 14.636(g)(3). However, in addition                  of the direct-pay fee agreement from the              amended information collection to OMB
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                                                to filing all fee agreements with the                   agency of original jurisdiction at which              for its review. OMB approved the
                                                Office of the General Counsel,                          the agreement was filed. This will                    amended information collection
                                                § 14.636(h)(4) requires that direct-pay                 generally be accomplished by retrieving               requirements under existing OMB
                                                fee agreements also be filed with the                   the document from VBMS.                               control number 2900–0605.
                                                agency of original jurisdiction, so that                   VA also makes an additional                           We also note that, in 2008, VA did not
                                                the agency of original jurisdiction could               conforming amendment to 38 CFR                        amend § 14.636 to reflect the OMB
                                                make an initial determination regarding                 14.637(b) to reference fee agreements                 control number. Therefore, we are also


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                                                                 Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / Rules and Regulations                                          81193

                                                amending § 14.636 to reflect that the                   mandates, the President’s priorities, or              Affairs amends 38 CFR part 14 as
                                                correct OMB control number is 2900–                     the principles set forth in this Executive            follows:
                                                0605.                                                   Order.’’
                                                                                                           The economic, interagency,                         PART 14—LEGAL SERVICES,
                                                Regulatory Flexibility Act                                                                                    GENERAL COUNSEL, AND
                                                                                                        budgetary, legal, and policy
                                                   The initial and final regulatory                     implications of this final rule have been             MISCELLANEOUS CLAIMS
                                                flexibility analyses requirements of                    examined, and it has been determined
                                                sections 603 and 604 of the Regulatory                  not to be a significant regulatory action             ■ 1. The authority citation for part 14
                                                Flexibility Act, 5 U.S.C. 601–612, are                  under Executive Order 12866. VA’s                     continues to read as follows:
                                                not applicable to this rule, because a                  impact analysis can be found as a                       Authority: 5 U.S.C. 301; 28 U.S.C. 2671–
                                                notice of proposed rulemaking is not                    supporting document at http://                        2680; 38 U.S.C. 501(a), 512, 515, 5502, 5901–
                                                required for this rule. Even so, the                    www.regulations.gov, usually within 48                5905; 28 CFR part 14, appendix to part 14,
                                                Secretary hereby certifies that this final              hours after the rulemaking document is                unless otherwise noted.
                                                rule will not have a significant                        published. Additionally, a copy of the
                                                economic impact on a substantial                                                                              ■ 2. Amend § 14.636 by:
                                                                                                        rulemaking and its impact analysis are
                                                number of small entities as they are                    available on VA’s Web site at http://                 ■ a. Revising paragraph (g)(3).
                                                defined in the Regulatory Flexibility                   www.va.gov/orpm/, by following the                    ■ b. Revising paragraph (h)(4).
                                                Act. At a minimum, this rule will affect                link for VA Regulations Published From                ■ c. Revising the parenthetical at the
                                                only the attorneys and agents who file                  FY 2004 to FYTD.                                      end of the section.
                                                fee agreements with the Office of the                                                                           The revisions read as follows:
                                                General Counsel. However, it will not                   Unfunded Mandates
                                                have a significant economic impact on                      The Unfunded Mandates Reform Act                   § 14.636 Payment of fees for
                                                these individuals, as it will result in                                                                       representation by agents and attorneys in
                                                                                                        of 1995 requires, at 2 U.S.C. 1532, that              proceedings before Agencies of Original
                                                modest savings for affected attorneys                   agencies prepare an assessment of
                                                and agents who will avoid the expense                                                                         Jurisdiction and before the Board of
                                                                                                        anticipated costs and benefits before                 Veterans’ Appeals.
                                                of duplicate filings. Therefore, pursuant               issuing any rule that may result in the
                                                to 5 U.S.C. 605(b), this rulemaking is                                                                        *      *     *     *     *
                                                                                                        expenditure by State, local, and tribal
                                                exempt from the initial and final                                                                                (g) * * *
                                                                                                        governments, in the aggregate, or by the
                                                regulatory flexibility analysis                         private sector, of $100 million or more                  (3) A copy of a direct-pay fee
                                                requirements of sections 603 and 604.                   (adjusted annually for inflation) in any              agreement, as defined in paragraph
                                                Executive Orders 12866 and 13563                        one year. This final rule will have no                (g)(2) of this section, must be filed with
                                                                                                        such effect on State, local, and tribal               the agency of original jurisdiction
                                                   Executive Orders 12866 and 13563                                                                           within 30 days of its execution. A copy
                                                direct agencies to assess the costs and                 governments, or on the private sector.
                                                                                                                                                              of any fee agreement that is not a direct-
                                                benefits of available regulatory                        Catalog of Federal Domestic Assistance                pay fee agreement must be filed with the
                                                alternatives and, when regulation is                                                                          Office of the General Counsel within 30
                                                necessary, to select regulatory                           There are no Federal Domestic
                                                                                                        Assistance programs associated with                   days of its execution by mailing the
                                                approaches that maximize net benefits                                                                         copy to the following address: Office of
                                                (including potential economic,                          this final rule.
                                                                                                                                                              the General Counsel (022D), Department
                                                environmental, public health and safety                 Signing Authority                                     of Veterans Affairs, 810 Vermont
                                                effects, and other advantages;                                                                                Avenue NW., Washington, DC 20420.
                                                distributive impacts; and equity).                        The Secretary of Veterans Affairs, or
                                                                                                        designee, approved this document and                  Only fee agreements that do not provide
                                                Executive Order 13563 (Improving                                                                              for the direct payment of fees,
                                                Regulation and Regulatory Review)                       authorized the undersigned to sign and
                                                                                                        submit the document to the Office of the              documents related to review of fees
                                                emphasizes the importance of                                                                                  under paragraph (i) of this section, and
                                                quantifying both costs and benefits,                    Federal Register for publication
                                                                                                        electronically as an official document of             documents related to review of expenses
                                                reducing costs, harmonizing rules, and                                                                        under § 14.637, may be filed with the
                                                promoting flexibility. Executive Order                  the Department of Veterans Affairs.
                                                                                                        Robert L. Nabors II, Chief of Staff,                  Office of the General Counsel. All
                                                12866 (Regulatory Planning and                                                                                documents relating to the adjudication
                                                Review) defines a ‘‘significant                         Department of Veterans Affairs,
                                                                                                        approved this document on December                    of a claim for VA benefits, including any
                                                regulatory action,’’ requiring review by                                                                      correspondence, evidence, or argument,
                                                OMB, unless OMB waives such review,                     22, 2015, for publication.
                                                                                                                                                              must be filed with the agency of original
                                                as ‘‘any regulatory action that is likely               List of Subjects in 38 CFR Part 14                    jurisdiction, Board of Veterans’ Appeals,
                                                to result in a rule that may: (1) Have an                                                                     or other VA office as appropriate.
                                                annual effect on the economy of $100                      Administrative practice and
                                                million or more or adversely affect in a                procedure, Claims, Courts, Foreign                       (h) * * *
                                                material way the economy, a sector of                   relations, Government employees,                         (4) As required by paragraph (g)(3) of
                                                the economy, productivity, competition,                 Lawyers, Legal services, Organization                 this section, the agent or attorney must
                                                jobs, the environment, public health or                 and functions (Government agencies),                  file with the agency of original
                                                safety, or State, local, or tribal                      Reporting and recordkeeping                           jurisdiction within 30 days of the date
                                                governments or communities; (2) Create                  requirements, Surety bonds, Trusts and                of execution a copy of the agreement
                                                a serious inconsistency or otherwise                    trustees, Veterans.                                   providing for the direct payment of fees
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                                                interfere with an action taken or                         Dated: December 23, 2015.                           out of any benefits subsequently
                                                planned by another agency; (3)                          William F. Russo                                      determined to be past due.
                                                Materially alter the budgetary impact of                Director, Office of Regulation Policy &               *      *     *     *     *
                                                entitlements, grants, user fees, or loan                Management, Office of the General Counsel,               (The Office of Management and
                                                programs or the rights and obligations of               Department of Veterans Affairs.                       Budget has approved the information
                                                recipients thereof; or (4) Raise novel                    For the reasons set out in the                      collection requirements in this section
                                                legal or policy issues arising out of legal             preamble, the Department of Veterans                  under control number 2900–0605.)


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                                                81194            Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / Rules and Regulations

                                                § 14.637   [Amended]                                    fishing industry, and allow NMFS to                   number of small entities. Agencies
                                                ■ 3. Amend § 14.637, paragraph (b), by                  determine when changes to the standard                generally rely on the SBA size standards
                                                removing ‘‘under § 14.636’’ and adding,                 are necessary and appropriate.                        to identify small entities for RFA
                                                in its place, ‘‘or the agency of original               DATES: This final rule is effective July 1,           purposes. For NMFS, rulemaking
                                                jurisdiction under § 14.636’’.                          2016.                                                 activities that have been impacted by
                                                [FR Doc. 2015–32687 Filed 12–28–15; 8:45 am]            ADDRESSES: Copies of the Regulatory                   changes to the size standards for
                                                                                                        Impact Review (RIR), proposed rule and                defining ‘‘small’’ businesses include,
                                                BILLING CODE 8320–01–P
                                                                                                        associated comments are available via                 but are not limited to, regulatory actions
                                                                                                        the Federal eRulemaking Portal: http://               and analyses undertaken pursuant to the
                                                                                                        www.regulations.gov, docket NOAA–                     Magnuson-Stevens Act (MSA),
                                                DEPARTMENT OF COMMERCE                                                                                        Endangered Species Act (ESA), Marine
                                                                                                        NMFS–2015–0061.
                                                National Oceanic and Atmospheric                        FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                              Mammal Protection Act (MMPA), and
                                                Administration                                          Mike Travis, Industry Economist, at                   National Environmental Policy Act
                                                                                                        (727) 209–5982, or email: mike.travis@                (NEPA). Between 2012 and 2014, NMFS
                                                50 CFR Part 200                                         noaa.gov.                                             published an average of 285 final rules
                                                                                                                                                              per year, more than 40 percent of which
                                                [Docket No. 150227193–5999–02]                          SUPPLEMENTARY INFORMATION:                            required an RFA analysis, and a
                                                RIN 0648–BE92                                           Background                                            majority of those directly regulated
                                                                                                                                                              commercial fishing businesses. Thus,
                                                                                                           For the purposes of this final rule, a             NMFS’ costs of complying with the RFA
                                                Establish a Single Small Business Size                  ‘‘commercial fishing business’’ is a
                                                Standard for Commercial Fishing                                                                               are significant even when the small
                                                                                                        business primarily engaged in                         business size standards are stable, and
                                                Businesses                                              commercial fishing and the                            those costs increase substantially when
                                                AGENCY:  National Marine Fisheries                      ‘‘commercial fishing industry’’ (NAICS                the standards are changing on a
                                                Service (NMFS), National Oceanic and                    11411) is composed of all such                        recurring basis.
                                                Atmospheric Administration (NOAA),                      businesses. Prior to 2013, SBA had                       NMFS and the Regional Fishery
                                                Commerce.                                               established a single small business size              Management Councils (Councils) have
                                                ACTION: Final rule.                                     standard for all businesses in the                    encountered significant difficulties
                                                                                                        commercial fishing industry. Since                    implementing and adjusting to the new
                                                SUMMARY:    NMFS issues this final rule to              2005, this standard had been $4 million               standards because: (1) The change was
                                                establish a small business size standard                in annual gross receipts (revenues).                  from a single size standard for all
                                                of $11 million in annual gross receipts                 Effective July 22, 2013, SBA established              commercial fishing businesses to three
                                                for all businesses in the commercial                    significantly different and higher size               very different standards, (2) many
                                                fishing industry (NAICS 11411), for                     standards for the three separate sectors              commercial fishing businesses
                                                Regulatory Flexibility Act (RFA)                        of the industry (78 FR 37398, June 20,                participate in both finfish and shellfish
                                                compliance purposes only. For the                       2013): $19 million for commercial                     fishing activities, making it unclear
                                                purposes of this final rule, a                          finfish fishing businesses (NAICS                     which standard to apply in the RFA
                                                ‘‘commercial fishing business’’ is a                    114111), $5.0 million for commercial                  analyses, and (3) a number of rules
                                                business primarily engaged in                           shellfish fishing businesses (NAICS                   simultaneously implement regulations
                                                commercial fishing, the ‘‘commercial                    114112), and $7.0 million for other                   under fishery management plans for
                                                fishing industry’’ is composed of all                   commercial marine fishing businesses                  both finfish and shellfish species (for
                                                such businesses, and the $11 million                    (NAICS 114119). These standards were                  e.g., 76 FR 82044, December 29, 2011;
                                                standard only applies to this industry.                 subsequently adjusted for inflation to                76 FR 82414, December 30, 2011; 77 FR
                                                This standard does not apply to                         $20.5 million, $5.5 million, and $7.5                 15916, March 26, 2012; and 80 FR
                                                businesses primarily engaged in seafood                 million, respectively, via an interim                 41472, July 15, 2015), again making it
                                                processing (NAICS 311170), seafood                      final rule, effective July 14, 2014 (79 FR            unclear which standard to apply in the
                                                wholesale activities (NAICS 424460), or                 33647, June 12, 2014). The Small                      RFA analyses.
                                                any other activity within the seafood                   Business Jobs Act of 2010 requires SBA                   Furthermore, one of the RFA’s
                                                industry. The $11 million standard will                 to review all size standards every five               primary purposes is to determine if
                                                be used in RFA analyses in place of the                 years to account for changes in industry              proposed regulations are expected to
                                                U.S. Small Business Administration’s                    structure and market conditions. SBA is               have disproportionate economic
                                                (SBA) current standards of $20.5                        also required to assess the impact of                 impacts on small businesses relative to
                                                million, $5.5 million, and $7.5 million                 inflation on its monetary-based size                  large businesses and, if so, to consider
                                                for the finfish (NAICS 114111), shellfish               standards at least once every five years              alternatives that would minimize any
                                                (NAICS 114112), and other marine                        (13 CFR 121.102). However, as reflected               significant adverse economic impacts on
                                                fishing (NAICS 114119) sectors of the                   by the timing of the two recent                       small businesses. Under SBA’s current
                                                U.S. commercial fishing industry,                       rulemakings adjusting the size                        standards for commercial fishing
                                                respectively. Establishing a single size                standards, SBA is not required to                     businesses, practically all commercial
                                                standard of $11 million for the                         conduct the reviews for these two                     fishing businesses, and particularly
                                                commercial fishing industry will                        purposes simultaneously. Thus, these                  commercial finfish fishing businesses,
                                                simplify the RFA analyses done in                       size standards are likely to change on a              would likely be determined to be small.
                                                support of NMFS’ rules, better meet the                 regular basis.                                        Thus, in their RFA analyses, NMFS and
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                                                RFA’s intent by more accurately                            Under the RFA, an agency must                      the Councils would not be able to
                                                representing expected disproportionate                  prepare an initial and final regulatory               discern, consider, or address any
                                                effects of NMFS’ rules between small                    flexibility analysis (IRFA/FRFA) for                  disproportionate economic impacts that
                                                and large commercial fishing                            each proposed and final rule,                         various regulatory alternatives might
                                                businesses, create a standard that more                 respectively, unless it certifies that a              have on businesses NMFS and the
                                                accurately reflects the size distribution               rule will not have a significant                      Councils think are ‘‘small’’ in the
                                                of all businesses in the commercial                     economic impact on a substantial                      commercial fishing industry. Such an


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Document Created: 2015-12-29 10:15:44
Document Modified: 2015-12-29 10:15:44
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
ContactDana Raffaelli, Staff Attorney, Office of the General Counsel (022O), Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 20420, (202) 461-7699. (This is not a toll-free telephone number.)
FR Citation80 FR 81191 
RIN Number2900-AP28
CFR AssociatedAdministrative 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 and Veterans

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