Statements, letters, and telegrams filed-Continued Illinois Territory Industrial Traffic League, R. K. Keas, president___ The Southern Traffic League, H. F. Gillis, executive secretary, The National Association of Magazine Publishers, Inc., by their at- torneys Messrs. Whitman, Ransom, Coulson & Goetz, New York The Federal Glass Co., E. A. Donnan, president (letter), Columbus, PRACTICE BEFORE GOVERNMENT AGENCIES WEDNESDAY, JULY 9, 1947 HOUSE OF REPRESENTATIVES, The subcommittee met at 10 a. m., Hon. John W. Gwynne (chairman) presiding. Mr. GWYNNE. The subcommittee will come to order. The hearing this morning is in the matter of H. R. 2657. A copy of the bill will be included in the record at this point. (The bill is as follows:) [H. R. 2657, 80th Cong., 1st sess.] A BILL To protect the public with respect to practitioners before administrative agencies Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE SECTION 1. This Act may be cited as the "Administrative Practitioners Act." DEFINITIONS SEC. 2. Terms shall have the same meaning as in the Administrative Procedure Act (Public Law 404, Seventy-ninth Congress). "Individual" means a natural person. "Credentials" means certificates and annually renewable cards of admission to practice issued pursuant to this Act. "Credentials Committee" means the agency established pursuant to section 3. "Practice" means any form of appearance or participation in any agency proceeding other than as a witness except that nothing herein shall prevent practice by an individual on his own behalf; by a partner on behalf of the partnership; by an officer or employee of any State, local government, or agency thereof or of the United States on behalf of such government or agency; or (if permitted by rule of the agency in any proceeding not conducted pursuant to sections 7 or 8 of the Administrative Procedure Act) by an officer of a corporation or other organization on its behalf. CREDENTIALS COMMITTEE SEC. 3. There shall be established, appointed, and operative (as the Attorney General shall, with the approval of the President, provide by rule in conformity with this Act) a Credentials Committee of five members who shall serve without compensation, issue certificates of admission and annual renewal cards (herein called credentials), and perform other functions as required by this Act. Three shall be a quorum. Four shall be designated by the Attorney General, with the approval of the President, from among officers otherwise serving in the executive branch by and with the consent of the Senate. One shall be a private practitioner similarly designated and representative of the legal profession. Four shall hold or be eligible for credentials under section 5. The Gredentials Committee shall have a Secretary, and for the purposes of this Act, such staff, other assist ance, or advisory services or committees as may be required, incur obligations, make rules, fix compensatory admission and annual renewal fees (the receipts from which shall be deposited in the Treasury to be drawn for the purposes of this Act as the Credentials Committee may direct), and require the submission of necessary information from any person or agency. UNAUTHORIZED PRACTICE PROHIBITED SEC. 4. No person shall practice, hold himself out as a practitioner, or in any other manner assume so to practice before any agency without credentials or excape as authorized under this Act; and no person shall in any manner or form solicit or procure the employment involving practice of individuals holding credentials hereunder, nor shall such holders of credentials participate in any such arrangement. Practice as attorneys subject to section 5 shall be governed by the standards of professional conduct generally applicable to members of the bar of courts. Agents admitted to practice pursuant to section 6 shall be subject to the same requirements, including limitations on solicitation and advertising, which shall be adapted and promulgated in the form of rules by the Credentials Committee. Individuals admitted to practice under section 5 or 6 shall honor, and presiding and deciding officers in any agency proceeding shall conduct themselves in accordance with, the similar requirements applicable to members of the judiciary. Professional misconduct of any kind shall be subject to disciplinary proceedings as provided in section 7. CREDENTIALS OF ATTORNEYS SEC. 5. Any individual shall be given credentials as an attorney upon (1) the production of evidence that he is a member in good standing of the bar of the highest court of any State, Territory, possession, or the District of Columbia and (2) his statement that he is engaged in the active practice of law in such jurisdiction. Such submittals shall be made to the Credentials Committee, and credentials shall be issued through the clerk of the district court of the United States in the judicial district in which the applicant maintains his law office. In cases in which an applicant is unable to meet the second of these qualifications, he shall in lieu thereof apply directly to the Credentials Committee and produce such reasonable and satisfactory evidence of character and fitness as may be required by rule. Possession of credentials under this section shall entitle the holder to practice before any agency except that any agency which pursuant to statute has for more than five years prior to the adoption of this Act required applicants to demonstrate additional special technical competence may continue to do so under reasonable rules and no credentials authorizing practice before such agency shall be issued until such agency shall have certified to the Credentials Committee that the applicant has met such requirements. Individuals subject to this section who before the effective date of this Act have been admitted to practice before any agency upon a showing substantially in compliance herewith and have maintained good standing therein shall be given credentials upon application to the Credentials Committee. Any agency may provide for practice by individuals eligible for credentials under this section for the purpose of a particular matter or agency proceeding without credentials. CREDENTIALS FOR AGENTS SEC. 6. If any agency shall find it necessary in the public interest and in the interest of parties to agency proceedings before it to authorize practice by individuals not subject to section 5 and provides by generally applicable rule therefor in any case in which the governing statute does not provide only for appearances in person or by attorney or counsel, any such individual may be admitted hereunder to practice as an agent before such agency except in proceedings pursuant to section 7 or 8 of the Administrative Procedure Act or in connection with any form of compulsory process. In each case the agency shall certify to the Credentials Committee that in its informed judgment the applicant possesses scientific training, experience, special competence, peculiar technical ability, knowledge of legal requirements, and other qualifications requisite for the adequate performance of the duties of a practitioner for the protection of clients and the attainment or preservation of their rights. Preliminary to such certification the agency shall require such examination or investigation as may be necessary for the purpose, and the certification shall specify the extent of practice for which the applicant is thus fully qualified. The Credentials Committee shall thereupon require evidence that the applicant possesses knowledge of professional responsibilities as well as good moral character, repute, and fitness, and, upon satisfaction of the foregoing requirements, issue revocable credentials limited to the extent of practice duly certified by the agency concerned. Qualifications with regard to character and fitness required hereunder, and the standards of professional responsibility applicable to individuals admitted to practice under this section, shall not be less than those required of individuals admitted to practice under section 5. On application, individuals subject to this section who have been individually authorized to practice before any agency, have maintained such standing, are actively engaged in practice so permitted, and are so certified by the agency with a specification of the extent to which they have been so qualified to practice and have practiced shall be given credentials enabling them to continue such practice. No agency, and nothing in this Act, shall be deemed to permit any person to practice law in any place or render service save the authorized participation in agency proceedings by holders of credentials; and no person shall hold himself out, impliedly or expressly, as otherwise authorized hereunder. DISCIPLINARY PROCEEDINGS SEC. 7. Every agency conducting proceedings subject to this Act shall by rule provide that, upon hearing and the record thereof, any person holding credentials shall for good cause be (1) censured, (2) suspended from practice in the particular case in which misconduct occurs or from all cases before it for a period not to exceed ninety days, or (3) subjected to disbarment proceedings with or without suspension from practice pending the final determination thereof. Final agency action under this section shall be subject to judicial review. In the case of any individual holding credentials under section 6 the agency shall, where cause appears, issue an order of disbarment and thereupon the Credentials Committee shall revoke all such credentials. In the case of an individual holding credentials under section 5 the agency may (1) refer the matter to appropriate and existing State or Federal judicial disciplinary authorities, (2) issue an order of disbarment if applicable statutes expressly provide both for disbarment and for judicial review thereof, or (3) direct the institution of disbarment proceedings in the name of the United States in (i) the District Court of the United States for the District of Columbia or (ii) the district courts of the United States or appropriate State courts in any jurisdiction in which any part of any misconduct occurred or in which the holder of credentials is admitted to practice. In such disbarment proceedings in any court, or upon judicial review of the disbarment order of any agency with reference to an individual subject to section 5, the United States shall be represented as in other cases and the court, proceeding de novo, shall try and determine the facts and may issue an order revoking credentials or take such other or additional action as may be authorized with respect to practice in the courts of law. OPERATION AND EFFECT SEC. S. Any person violating any provision of this Act or rule lawfully issued hereunder, or submitting any false information required pursuant hereto, shall be fined not more than $10,000, or imprisoned for not more than one year, or both. No indivdual holding or eligible for credentials under section 5 and serving by appointment as an officer, employee, or consultant in any agency or branch of the Government of the United States shall act or receive compensation during such service or thereafter as an attorney for other interests with respect to (1) any matter in which the United States is interested and he renders or has rendered such service or (2) any matter factually related thereto; but in other matters such an individual so appointed on a temporary (not to exceed one year), intermittent, uncompensated, or part-time basis or for the purpose of particular litigation or agency proceedings may (if otherwise qualified and unless limited by rule or written instruction of the appointing agency) during or after such service so act or receive compensation as an attorney. All statutory provisions, rules, or applications thereof in conflict with this Act are hereby repealed. No subsequent legislation shall be held to supersede or modify any provision or application of this Act except to the extent that such legislation shall do so expressly. If any provision of this Act or application thereof is held invalid, the remainder of this Act or other applications of such provision shall not be affected. The requirements of this Act respecting admissions to practice shall not take effect until six months after its approval. Mr. GWYNNE. At this time, I would also like to file for the record the statements from the various departments and agencies of the Government relative to this bill, H. R. 2657. (The statements appear hereafter in the appendix.) Mr. GWYNNE. The first witness this morning is Mr. John D. Randall. Mr. Randall, will you take the stand? STATEMENT OF JOHN D. RANDALL, LAWYER, AMERICAN BAR ASSOCIATION, CHAIRMAN, STANDING COMMITTEE ON THE UNAUTHORIZED PRACTICE OF LAW OF THE AMERICAN BAR ASSOCIATION, CEDAR RAPIDS, IOWA Mr. RANDALL. Thank you, Mr. Chairman. I might state for the record that appearing with me today are Aaron L. Ford, a member of the Washington, D. C., bar, whose fices are in the Munsey Building, Washington, D. C. Mr. Ford is the chairman of the committee on admissions to practice before administrative agencies of the American Bar Association. Also, John W. Cragun, a member of the Washington, D. C., bar, and a member of the national committee on the administrative law section of the American Bar Association. He was formerly a member of the staff of the Supreme Court. These two gentlemen are here with me today. Mr. GWYNNE. We are glad to have all of you with us. We are especially pleased to have our old colleague, Mr. Ford, with us again. Mr. FORD. Thank you, Mr. Chairman. Mr. RANDALL. My name is John D. Randall. I am a lawyer engaged in the active practice of law at Cedar Rapids, Iowa. I am authorized to appear on this occasion on behalf of the American Bar Association and as the chairman of its standing committee on the unauthorized practice of the law. I am also authorized to appear on behalf of its section of administrative law. I am likewise the chairman of the committee on unauthorized practice of the law of the Iowa State Bar Association. The American Bar Association endorses H. R. 2657 and urges its adoption. There are, however, certain respects in which we believe desirable improvements might be made. These I shall mention later in discussing the several provisions separately. First, I desire to speak very briefly about (1) the general position of the American Bar Association; (2) the objectives of H. R. 2657; (3) the misconceptions of two groups of lay practitioners-that is, the traffic men interested in railroad matters, and the accountants interested in tax matters; (4) the comments submitted by several administrative agencies; and then (5) the details of the bill. I will take first the general position of the American Bar Association. From the earliest times, experience has demonstrated that laws are indispensable to orderly government. For that reason, there are lawmakers, judges, administrators, and lawyers. A lawyer is simply a person who has complied with the requirements for a license to practice law. For some centuries these licenses have been granted by courts. In this country the Federal Government leaves the granting of these |