Arkansas 2025 Regular Session

Arkansas House Bill HB1423 Compare Versions

Only one version of the bill is available at this time.

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1	1	Stricken language would be deleted from and underlined language would be added to present law.
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3	3	State of Arkansas 1
4	4	95th General Assembly A Bill 2
5	5	Regular Session, 2025 HOUSE BILL 1423 3
6	6	4
7	7	By: Representatives Cozart, S. Berry, Breaux, Joey Carr, Hollowell, Milligan, Painter, Richmond, Rye, 5
8	8	Torres, Unger, D. Whitaker 6
9	9	By: Senator D. Wallace 7
10	10	8
11	11	For An Act To Be Entitled 9
12	12	AN ACT TO PROHIBIT A PERSON FROM RECEIVING 10
13	13	COMPENSATION FOR THE PREPARATION, PRESENTATION, OR 11
14	14	PROSECUTION OF A CLAIM WITH REGARD TO A VETERANS' 12
15	15	BENEFITS MATTER EXCEPT AS AUTHORIZED BY FEDERAL LAW; 13
16	16	AND FOR OTHER PURPOSES. 14
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19	19	Subtitle 17
20	20	TO PROHIBIT A PERSON FROM RECEIVING 18
21	21	COMPENSATION FOR THE PREPARATION, 19
22	22	PRESENTATION, OR PROSECUTION OF A CLAIM 20
23	23	WITH REGARD TO A VETERANS' BENEFITS 21
24	24	MATTER EXCEPT AS AUTHORIZED BY FEDERAL 22
25	25	LAW. 23
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27	27	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 25
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29	29	SECTION 1. Arkansas Code Title 4, Chapter 88, is amended to add an 27
30	30	additional subchapter to read as follows: 28
31	31	Subchapter 15 — Governing Unaccredited Representatives Defrauding (GUARD) VA 29
32	32	Benefits Act 30
33	33	31
34	34	4-88-1501. Title. 32
35	35	This subchapter shall be known and may be cited as the "Governing 33
36	36	Unaccredited Representatives Defrauding (GUARD) VA Benefits Act". 34
37	37	35
38	38	4-88-1502. Purpose. 36 HB1423
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41	41	The purpose of this subchapter is to provide a cause of action under 1
42	42	the laws of this state to prevent unethical conduct and the improper 2
43	43	collection of fees by persons advising or assisting an individual with the 3
44	44	filing of a claim for disability benefits before the Department of Veterans 4
45	45	Affairs or the United States Department of Veterans Affairs. 5
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47	47	4-88-1503. Definitions. 7
48	48	As used in this subchapter: 8
49	49	(1) "Compensation" means payment of money, a thing of value, or 9
50	50	a financial benefit; 10
51	51	(2) "Person" means an individual, corporation, business trust, 11
52	52	estate, trust, partnership, limited liability company, joint venture, public 12
53	53	corporation, or any other legal or for profit commercial entity; and 13
54	54	(3) "Veterans' benefits matter" means the preparation, 14
55	55	presentation, or prosecution of a claim affecting a person who has filed or 15
56	56	expressed an intent to file a claim for a benefit, program, service, 16
57	57	commodity, function, or status, the entitlement to which is determined under 17
58	58	the laws and regulations administered by the Department of Veterans Affairs 18
59	59	or the United States Department of Veterans Affairs pertaining to veterans, 19
60	60	their dependents, their survivors, and any other individual eligible for such 20
61	61	benefits. 21
62	62	22
63	63	4-88-1504. Advising or assisting in veterans' benefits matters — 23
64	64	Receipt of compensation. 24
65	65	(a)(1) A person may not receive compensation for the preparation, 25
66	66	presentation, or prosecution of a claim or for advising, consulting, or 26
67	67	assisting an individual with regard to a veterans' benefits matter before the 27
68	68	Department of Veterans Affairs or the United States Department of Veterans 28
69	69	Affairs, except as permitted under Title 38 U.S.C. § 5904, and 38 C.F.R. § 29
70	70	14.629. 30
71	71	(2) A person may not receive compensation for referring an 31
72	72	individual to another person to prepare, present, or prosecute a claim or 32
73	73	advise, consult, or assist the individual with a veterans' benefits matter 33
74	74	before the Department of Veterans Affairs or the United States Department of 34
75	75	Veterans Affairs. 35
76	76	(3) Except as provided under subdivision (a)(1) of this section, 36 HB1423
77	77
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79	79	this subsection does not prohibit a division of fees between attorneys that 1
80	80	is otherwise proper under the American Bar Association's Model Rules of 2
81	81	Professional Conduct, Rule 1.5(e). 3
82	82	(b) A person who receives compensation for the preparation, 4
83	83	presentation, or prosecution of a claim or for advising, consulting, or 5
84	84	assisting an individual with regard to a veterans' benefits matter before the 6
85	85	Department of Veterans Affairs or the United States Department of Veterans 7
86	86	Affairs shall be held to the same ethical standards to which an attorney is 8
87	87	held under the Arkansas Rules of Professional Conduct, including without 9
88	88	limitation the rules on: 10
89	89	(1) Advertising; 11
90	90	(2) Solicitation of new clients; and 12
91	91	(3) Confidentiality. 13
92	92	(c) A violation of this section is a deceptive and unfair trade 14
93	93	practice and constitutes a Class A misdemeanor as a violation of the 15
94	94	Deceptive Trade Practices Act, § 4 -88-101 et seq. 16
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