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SB206
CHG1JWQ-2
By Senator Carnley
RFD: Veterans, Military Affairs and Public Safety
First Read: 27-Feb-25
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First Read: 27-Feb-25
A BILL
TO BE ENTITLED
AN ACT
Relating to veterans; to establish certain parameters
for the business practice of advising or assisting individuals
wanting to file claims for veterans benefits; and to provide
that violations are a deceptive trade practice.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. For purposes of this act, the following
terms have the following meanings:
(1) COMPENSATION. Payment of any money, thing of value,
or financial benefit.
(2) PERSON. An individual; corporation; business;
estate; trust; partnership; limited liability company;
association; joint venture; or public corporation; a state,
county, or municipal governmental body or instrumentality
thereof; or any other commercial entity.
(3) VETERANS BENEFITS MATTER. The preparation,
presentation, or prosecution of any claim affecting any person
who has filed or expressed an intent to file a claim for any
benefit, program, service, commodity, function, or status
entitlement as determined under the laws, rules, and
regulations administered by the United States Department of
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regulations administered by the United States Department of
Veterans Affairs or the Alabama Department of Veterans Affairs
pertaining to veterans, their dependents, their survivors, and
any other individuals eligible for such benefits.
Section 2. No person shall receive compensation for
advising or assisting any individual with regard to any
veterans benefits matter, except as permitted under federal
law and pursuant to this section.
Section 3. A person seeking to receive compensation for
advising or assisting any individual with any veterans
benefits matter, before rendering any services, shall do both
of the following:
(1) Memorialize all terms regarding the individual's
payment of fees for services rendered in a written agreement,
signed by both parties, that adheres to all criteria specified
within 38 C.F.R. § 14.636.
(2)a. Provide the following disclosure, both orally and
in writing:
"This business is not sponsored by, or affiliated with,
the United States Department of Veterans Affairs or the
Alabama Department of Veterans Affairs, or any other federally
chartered veterans service organization. Other organizations,
including, but not limited to, the Alabama Department of
Veterans Affairs, your local county veterans service agency,
and other federally chartered veterans service organizations,
may be able to provide you with this service free of charge.
Products or services offered by this business are not
necessarily endorsed by any of these organizations. You may
qualify for other veterans benefits beyond the benefits for
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qualify for other veterans benefits beyond the benefits for
which you are receiving services here."
b. The written disclosure shall appear in at least
12-point font and shall appear in a readily noticeable and
identifiable place in the person's agreement with the
individual seeking services.
c. The individual must verbally acknowledge
understanding of the oral disclosure and must sign the
document in which the written disclosure appears.
d. The person offering services shall retain a copy of
the written disclosure while providing veterans benefits
services for compensation to the individual and for at least
one year after the date on which the service relationship
terminates.
Section 4. (a) A person advising or assisting
individuals pursuant to this act may not guarantee, either
directly or by implication, that any individual is certain to
receive specific veterans benefits or that any individual is
certain to receive a specific level, percentage, or amount of
veterans benefits.
(b) A person advising or assisting individuals pursuant
to this act may not receive excessive or unreasonable fees as
compensation. The factors articulated within 38 C.F.R. §
14.636 shall govern determinations of whether a fee is
excessive or unreasonable.
Section 5. (a) A person may not advertise the person's
services of advising or assisting in veterans benefits matters
for compensation without including the following disclosure:
"This business is not sponsored by, or affiliated with,
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"This business is not sponsored by, or affiliated with,
the United States Department of Veterans Affairs, the Alabama
Department of Veterans Affairs, or any other federally
chartered veterans service organization. Other organizations,
including, but not limited to, the Alabama Department of
Veterans Affairs, your local county veterans service agency,·
and other federally chartered veterans service organizations,
may be able to provide you with these services free of charge.
Products or services offered by this business are not
necessarily endorsed by any of these organizations. You may
qualify for other veterans benefits beyond the services that
this business offers."
(b) If the advertisement is printed, including, but not
limited to, advertisements visible to Internet users, the
disclosure shall appear in a readily visible place on the
advertisement. If the advertisement is verbal, the spoken
statement of the disclosure shall be clear and intelligible.
Section 6. In no event may a person receive
compensation for referring an individual to another person to
advise or assist the individual with any veterans benefits
matter.
Section 7. A violation of this act shall be considered
a violation of the Deceptive Trade Practices Act under Chapter
19 of Title 8, Code of Alabama 1975.
Section 8. The provisions of this act shall not apply
to an attorney accredited by the federal government pursuant
to 38 C.F.R. § 14.629.
Section 9. This act shall become effective on October
1, 2025.
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1, 2025.
Senate
Read for the first time and referred
to the Senate committee on Veterans,
Military Affairs and Public Safety
................27-Feb-25
Read for the second time and placed
on the calendar:
0 amendments
................05-Mar-25
Read for the third time and passed
as amended
Yeas 27
Nays 0
Abstains 0
................10-Apr-25
Patrick Harris,
Secretary.
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