First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0769.01 Anna Petrini x5497
HOUSE BILL 25-1233
House Committees Senate Committees
State, Civic, Military, & Veterans Affairs
A BILL FOR AN ACT
C
ONCERNING PERSONS WHO PROV IDE ASSISTANCE WITH VETERANS '101
BENEFITS CLAIMS , AND, IN CONNECTION THEREWITH ,102
ESTABLISHING THAT CERTAIN ACT IONS BY SUCH PERSONS ARE103
DECEPTIVE TRADE PRACTICES UNDER THE "COLORADO104
C
ONSUMER PROTECTION ACT".105
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill makes it a deceptive trade practice under the "Colorado
Consumer Protection Act" for a person who advises, assists, or consults
HOUSE SPONSORSHIP
Richardson and Carter, Armagost, Keltie
SENATE SPONSORSHIP
Hinrichsen, Sullivan
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. a veteran, in connection with a claim for veterans' benefits (veterans'
benefits matter), to:
! Receive compensation in excess of $12,500 for the service,
subject to additional limitations linking permissible
compensation to results delivered;
! Receive compensation for referring a veteran to a third
party;
! Collect compensation on behalf of a third party engaged to
assist with any aspect of a veterans' benefits matter;
! Receive compensation in connection with a claim filed
within the one-year period following a veteran's release
from active duty without a signed waiver from the veteran;
! Fail to provide a veteran the option of an interest-free
payment plan;
! Guarantee a successful outcome in a veterans' benefits
matter or engage in certain direct advertising;
! Fail to memorialize the payment terms and certain
disclosures in a written, signed business agreement;
! Fail to take various security measures related to veterans'
personal information; or
! Fail to remain a member in good standing of a national
veterans' benefit trade organization that holds members to
ethics and certification standards.
The bill requires the attorney general or district attorney to transmit any
civil penalty collected for a violation of the veterans' benefits matter
provisions to the state treasurer for deposit in the Colorado state veterans
trust fund.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) Veterans embody courage and sacrifice, defending our4
freedoms. Ensuring they receive the benefits they have earned is a moral5
obligation shared by all. Supporting veterans honors their service and6
ensures they thrive in civilian life while reflecting our values and7
fulfilling our commitment to those who have safeguarded our nation.8
(b) According to 2023 data from the United States department of9
veterans affairs, Colorado is home to an estimated 369,000 veterans. The10
HB25-1233-2- $2.7 billion in service-connected compensation Colorado's veterans and1
veterans' survivors receive each year undeniably improves their quality of2
life and has a significant impact on the state's economy.3
(c) As of mid-January 2025, the United States veterans4
administration reports 969,748 pending benefit claims, including5
disability compensation and pension claims that normally require a rating6
decision. Over a quarter of the pending benefit claims have been active7
for 125 days or longer and are considered backlogged. Colorado's8
veterans have 17,433 pending claims, and 4,235 of them are backlogged.9
The average processing time for a Colorado veteran's claim is 135 days.10
(d) By assisting with the preparation of a veteran's benefit claim,11
professional, trained, and ethical individuals can help reduce the time that12
the veterans administration requires to process the claim once it is13
submitted;14
(e) State and local veterans service officers and veterans15
associations, including the veterans of foreign wars, American legion, and16
disabled American veterans, as well as attorneys and agents accredited by17
the United States department of veterans affairs, continue to provide free18
claims preparation services that hold great value for veterans and deserve19
our support. However, the large volume of benefit claims exceeds the20
combined capacity of these organizations and individuals.21
(f) The private sector, which includes non-accredited consultants22
that are not acting as agents or attorneys, has stepped forward to assist23
and offer options for those who choose to forego the free services of24
veterans service officers and veterans associations. While the majority of25
for-profit service providers deliver quality services in a transparent and26
ethical manner, there will always be some that prey on veterans who are27
HB25-1233
-3- unsuspecting or simply desperate for help.1
(g) Because of the predatory practices of some providers of claims2
preparation services, consumer protections are necessary to safeguard3
Colorado's veterans and ensure that only legitimate for-profit entities4
operate in the state to provide choice and capacity in the preparation of5
veterans' benefits claims.6
SECTION 2. In Colorado Revised Statutes, 6-1-112, amend7
(1)(a), (1)(b), and (1)(c); and add (4) as follows:8
6-1-112. Civil penalties - definition. (1) The attorney general or9
a district attorney may bring a civil action on behalf of the state to seek10
the imposition of civil penalties as follows:11
(a) Except as provided in subsection (3) SUBSECTIONS (3) AND (4)12
of this section, any person who violates or causes another to violate any13
provision of this article 1 shall forfeit and pay to the general fund of this14
state a civil penalty of not more than twenty thousand dollars for each15
such violation. For purposes of this subsection (1)(a), a violation of any16
provision shall constitute a separate violation with respect to each17
consumer or transaction involved.18
(b) Except as provided in subsection (3) SUBSECTIONS (3) AND (4)19
of this section, any person who violates or causes another to violate any20
court order or injunction issued pursuant to this article 1 shall forfeit and21
pay to the general fund of this state a civil penalty of not more than ten22
thousand dollars for each such violation. For the purposes of this section,23
the court issuing the order or injunction shall retain RETAINS jurisdiction,24
and the cause shall be IS continued. Upon violation, the attorney general25
or a district attorney may petition the court for the recovery of the civil26
penalty. Such civil penalty shall be IS in addition to any other penalty or27
HB25-1233
-4- remedy available for the enforcement of the provisions of this article 11
and any court order or injunction.2
(c) Except as provided in subsection (3) SUBSECTIONS (3) AND (4)3
of this section, any person who violates or causes another to violate any4
provision of this article 1, where IN WHICH such violation was committed5
against an elderly person, shall forfeit and pay to the general fund of the6
state a civil penalty of not more than fifty thousand dollars for each such7
violation. For purposes of this subsection (1)(c), a violation of any8
provision of this article 1 is a separate violation with respect to each9
elderly person involved.10
(4) T
HE ATTORNEY GENERAL OR DISTRICT ATTORNEY SHALL11
TRANSMIT ANY CIVIL PENALTY COLLECTED IN ACCORDANCE WITH THIS12
SECTION FOR A VIOLATION DESCRIBED IN SECTION 6-1-105 (1)(iiii) TO THE13
STATE TREASURER FOR DEPOSIT IN THE COLORADO STATE VETERANS14
TRUST FUND CREATED IN SECTION 28-5-709.15
SECTION 3. In Colorado Revised Statutes, add 6-1-737 as16
follows:17
6-1-737. Veterans' benefits matters - compensation for18
services - written agreements - advertising - disclosures - deceptive19
trade practice - definitions. (1) A
S USED IN THIS SECTION, UNLESS THE20
CONTEXT OTHERWISE REQUIRES :21
(a) "C
OMPENSATION" MEANS ANY MONEY, THING OF VALUE, OR22
ECONOMIC BENEFIT CONFERRED ON OR RECEIVED BY A PERSON IN RETURN23
FOR SERVICES RENDERED OR TO BE RENDERED BY THE PERSON OR24
ANOTHER.25
(b) "P
ERSON" HAS THE MEANING SET FORTH IN SECTION 6-1-102.26
(c) "V
ETERAN" MEANS A PERSON WHO SERVED IN THE ACTIVE27
HB25-1233
-5- MILITARY, NAVAL, OR AIR FORCE SERVICE OF THE UNITED STATES AND1
WHO WAS DISCHARGED OR RELEASED UNDER CONDITIONS OTHER THAN2
DISHONORABLE, IN ACCORDANCE WITH U.S.C. TITLE 38. "VETERAN"3
INCLUDES AN ELIGIBLE MEMBER OF THE RESERVES OR NATIONAL GUARD ,4
A VETERAN'S DEPENDENT, A VETERAN'S SURVIVOR, OR ANOTHER5
INDIVIDUAL ELIGIBLE FOR A BENEFIT PURSUANT TO THE LAWS AND6
REGULATIONS ADMINISTERED BY THE UNITED STATES DEPARTMENT OF7
VETERANS AFFAIRS OR THE COLORADO DEPARTMENT OF MILITARY AND8
VETERANS AFFAIRS.9
(d) "V
ETERANS' BENEFITS MATTER" MEANS THE PREPARATION ,10
PRESENTATION, OR PROSECUTION OF A CLAIM AFFECTING A VETERAN WHO11
HAS FILED OR EXPRESSED AN INTENT TO FILE A CLAIM FOR A BENEFIT ,12
PROGRAM, SERVICE, COMMODITY, FUNCTION, STATUS, OR ENTITLEMENT13
FOR WHICH THE VETERAN MAY BE ELIGIBLE PURSUANT TO THE LAWS AND14
REGULATIONS ADMINISTERED BY THE UNITED STATES DEPARTMENT OF15
VETERANS AFFAIRS OR THE COLORADO DEPARTMENT OF MILITARY AND16
VETERANS AFFAIRS.17
(2) (a) A
PERSON MAY ONLY BE COMPENSATED FOR ADVISING ,18
ASSISTING, OR CONSULTING A VETERAN ON A VETERANS ' BENEFITS MATTER19
IF THE PERSON SECURES AN INCREASE IN THE BENEFITS AWARDED .20
C
OMPENSATION FOR ADVISING, ASSISTING, OR CONSULTING A VETERAN ON21
A FEDERAL VETERANS' ADMINISTRATION DISABILITY CLAIM MUST NOT22
EXCEED FIVE TIMES THE AMOUNT OF ANY INCREASE IN MONTHLY BENEFITS23
AWARDED AS A RESULT OF THE PERSON 'S ADVICE, ASSISTANCE, OR24
CONSULTATION.25
(b) T
HE COMPENSATION CALCULATED PURSUANT TO SUBSECTION26
(2)(a)
OF THIS SECTION MUST NOT EXCEED TWELVE THOUSAND FIVE27
HB25-1233
-6- HUNDRED DOLLARS.1
(c) A
PERSON SHALL NOT RECEIVE ANY COMPENSATION FOR2
ADVISING, ASSISTING, OR CONSULTING A VETERAN ON A VETERANS '3
BENEFITS MATTER BEYOND THE COMPENSATION CALCULATED PURSUANT4
TO SUBSECTIONS (2)(a) AND (2)(b) OF THIS SECTION. THE PROHIBITION ON5
ADDITIONAL COMPENSATION EXTENDS TO , BUT IS NOT LIMITED TO:6
(I) A
N INITIAL OR NONREFUNDABLE FEE;7
(II) C
OMPENSATION RECEIVED ON BEHALF OF A THIRD PERSON8
ENGAGED TO ADVISE, ASSIST, OR CONSULT ON AN ASPECT OF A VETERANS'9
BENEFITS MATTER; OR10
(III) C
OMPENSATION FOR REFERRING A VETERAN TO A THIRD11
PERSON TO ADVISE, ASSIST, OR CONSULT ON A VETERANS ' BENEFITS12
MATTER.13
(3) A
PERSON ADVISING, ASSISTING, OR CONSULTING ON A14
VETERANS' BENEFITS MATTER SHALL NOT RECEIVE COMPENSATION FOR15
SERVICES RENDERED IN CONNECTION WITH A CLAIM FILED WITHIN THE16
ONE-YEAR PERIOD FOLLOWING A VETERAN 'S RELEASE FROM ACTIVE DUTY17
DURING WHICH THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS18
PRESUMES CERTAIN DISABLING CONDITIONS ARE SERVICE -CONNECTED,19
UNLESS THE VETERAN ACKNOWLEDGES BY SIGNING A WAIVER THAT THE20
VETERAN IS WITHIN THE ONE-YEAR PERIOD AND CHOOSES TO DECLINE FREE21
SERVICES THAT ARE AVAILABLE.22
(4) A
PERSON ADVISING, ASSISTING, OR CONSULTING ON A23
VETERANS' BENEFITS MATTER FOR COMPENSATION SHALL PROVIDE A24
VETERAN THE OPTION OF AN INTEREST -FREE PAYMENT PLAN OF NOT25
LONGER THAN ONE YEAR.26
(5) A
PERSON ADVISING, ASSISTING, OR CONSULTING ON A27
HB25-1233
-7- VETERANS' BENEFITS MATTER SHALL NOT GUARANTEE , EITHER DIRECTLY1
OR BY IMPLICATION, A SUCCESSFUL OUTCOME IN A VETERANS ' BENEFITS2
MATTER, INCLUDING THAT A VETERAN IS CERTAIN TO RECEIVE SPECIFIC3
VETERANS' BENEFITS OR THAT A VETERAN IS CERTAIN TO RECEIVE A4
SPECIFIC LEVEL, PERCENTAGE, OR AMOUNT OF VETERANS' BENEFITS.5
(6) A
PERSON ADVISING, ASSISTING, OR CONSULTING ON A6
VETERANS' BENEFITS MATTER FOR COMPENSATION SHALL NOT DIRECTLY7
ADVERTISE OR MARKET TO AN INDIVIDUALLY IDENTIFIED VETERAN ,8
RESIDENCE, OR BUSINESS LOCATION . THE PROHIBITION ON DIRECT9
ADVERTISING AND MARKETING DOES NOT INCLUDE COMMUNICATING VIA10
TELEPHONE, MAIL, OR ELECTRONIC COMMUNICATION , IF INITIATED BY A11
VETERAN.12
(7) A
PERSON SEEKING COMPENSATION FOR ADVISING , ASSISTING,13
OR CONSULTING ON A VETERANS ' BENEFITS MATTER SHALL , BEFORE14
RENDERING ANY SERVICES, MEMORIALIZE THE SPECIFIC TERMS UNDER15
WHICH THE AMOUNT OF COMPENSATION WILL BE DETERMINED AND PAID16
IN A WRITTEN BUSINESS AGREEMENT SIGNED BY BOTH PARTIES .17
(8) (a) A
PERSON ADVISING, ASSISTING, OR CONSULTING ON A18
VETERANS' BENEFITS MATTER FOR COMPENSATION SHALL PROVIDE THE19
FOLLOWING DISCLOSURE IN THE WRITTEN BUSINESS AGREEMENT REQUIRED20
PURSUANT TO SUBSECTION (7) OF THIS SECTION:21
T
HIS BUSINESS IS NOT SPONSORED BY OR AFFILIATED WITH22
THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS23
OR THE COLORADO DEPARTMENT OF MILITARY AND24
V
ETERANS AFFAIRS, OR ANY OTHER FEDERALLY CHARTERED25
VETERANS' SERVICE ORGANIZATION . OTHER26
ORGANIZATIONS, INCLUDING, BUT NOT LIMITED TO, THE27
HB25-1233
-8- COLORADO DEPARTMENT OF MILITARY AND VETERANS1
A
FFAIRS, A LOCAL VETERANS' SERVICE ORGANIZATION AND2
OTHER FEDERALLY CHARTERED VETERANS ' SERVICE3
ORGANIZATIONS, MAY PROVIDE THIS SERVICE FREE OF4
CHARGE OR MIGHT NOT ENDORSE THIS SERVICE . YOU MAY5
QUALIFY FOR OTHER VETERANS ' BENEFITS OUTSIDE THE6
SCOPE OF THIS BUSINESS AGREEMENT .7
(b) I
F A PERSON, OR AN EMPLOYEE , CONTRACTOR, OR8
SUBCONTRACTOR OF THE PERSON , WHO IS ADVISING, ASSISTING, OR9
CONSULTING ON A VETERANS ' BENEFITS MATTER FOR COMPENSATION IS10
NOT ACCREDITED BY THE UNITED STATES VETERANS ADMINISTRATION11
PURSUANT TO THE REQUIREMENTS OF 38 CFR 14.629, THE PERSON SHALL12
DISCLOSE THE LACK OF ACCREDITATION ALONG WITH A CLEAR13
EXPLANATION OF WHAT IT MEANS TO LACK ACCREDITATION . A PERSON14
ADVISING, ASSISTING, OR CONSULTING ON A VETERANS' BENEFITS MATTER15
FOR COMPENSATION SHALL PROVIDE THE ACCREDITATION DISCLOSURE16
REQUIRED PURSUANT TO THIS SUBSECTION (8)(b) IN THE WRITTEN17
AGREEMENT REQUIRED PURSUANT TO SUBSECTION (7) OF THIS SECTION, IN18
A CONSPICUOUS LOCATION ON THE PERSON 'S WEBSITE, AND IN A19
CONSPICUOUS LOCATION AT THE PERSON 'S PHYSICAL ADDRESS , IF20
APPLICABLE.21
(9) T
HE DISCLOSURES REQUIRED PURSUANT TO SUBSECTION (8) OF22
THIS SECTION MUST APPEAR IN BOLD -FACED FONT IN AT LEAST23
TWELVE-POINT TYPE IN AN EASILY IDENTIFIABLE PLACE IN THE BUSINESS24
AGREEMENT. THE VETERAN SHALL SIGN THE PAGE ON WHICH EACH25
DISCLOSURE APPEARS TO REPRESENT AN UNDERSTANDING OF ITS TERMS .26
T
HE PERSON ADVISING, ASSISTING, OR CONSULTING ON A VETERANS '27
HB25-1233
-9- BENEFITS MATTER FOR COMPENSATION SHALL RETAIN A COPY OF THE1
WRITTEN BUSINESS AGREEMENT CONTAINING THE DISCLOSURE FOR AT2
LEAST ONE YEAR AFTER THE DATE ON WHICH THE SERVICE RELATIONSHIP3
WITH THE VETERAN TERMINATES .4
(10) (a) A
PERSON ADVISING, ASSISTING, OR CONSULTING ON A5
VETERANS' BENEFITS MATTER FOR COMPENSATION SHALL NOT :6
(I) U
SE INTERNATIONAL CALL CENTERS OR DATA CENTERS FOR7
PROCESSING VETERANS' PERSONAL INFORMATION;8
(II) U
SE A VETERAN'S PERSONAL LOG-IN CREDENTIALS TO ACCESS9
THE VETERAN'S MEDICAL, FINANCIAL, OR GOVERNMENT BENEFITS10
INFORMATION; OR11
(III) D
ISCLOSE PERSONAL DATA OBTAINED IN CONNECTION WITH A12
VETERANS' BENEFITS MATTER TO A THIRD PERSON , UNLESS THE13
DISCLOSURE IS MADE PURSUANT TO A COURT ORDER .14
(b) A
PERSON ADVISING, ASSISTING, OR CONSULTING ON A15
VETERANS' BENEFITS MATTER FOR COMPENSATION SHALL :16
(I) C
OMPLETE A CRIMINAL BACKGROUND CHECK OF A PERSON17
PRIOR TO PERMITTING THE PERSON TO ACCESS A VETERAN 'S MEDICAL,18
FINANCIAL, OR GOVERNMENT BENEFITS INFORMATION . THE BACKGROUND19
CHECK MUST BE CONDUCTED BY A REPUTABLE SOURCE AND INCLUDE20
IDENTITY VERIFICATION AND A CRIMINAL HISTORY RECORD CHECK .21
(II) S
AFEGUARD A VETERAN'S MEDICAL DATA IN COMPLIANCE WITH22
FEDERAL AND STATE PRIVACY LAWS , INCLUDING THE FEDERAL "HEALTH23
I
NSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996", 42 U.S.C.24
SEC. 1320d TO 1320d-9.25
(11) A
PERSON ADVISING, ASSISTING, OR CONSULTING ON A26
VETERANS' BENEFITS MATTER FOR COMPENSATION SHALL REMAIN A27
HB25-1233
-10- MEMBER IN GOOD STANDING OF THE NATI ONAL ASSOCIATION FOR VETERAN1
RIGHTS OR A NATIONAL VETERANS ' BENEFIT TRADE ORGANIZATION THAT2
HAS ESTABLISHED FOR EMPLOYEES, CONTRACTORS, AND SUBCONTRACTORS3
OF THE ORGANIZATION 'S MEMBERS BOTH A CODE OF ETHICS AND4
TECHNICAL CERTIFICATION STANDARDS EQUIVALENT TO THE CODE OF5
ETHICS AND TECHNICAL CERTIFICATION STANDARDS THAT APPLY TO A6
VETERANS SERVICE OFFICER CERTIFIED BY THE UNITED STATES7
DEPARTMENT OF VETERANS AFFAIRS AND EQUIVALENT TO THE CODE OF8
ETHICS AND TECHNICAL CERTIFICATION STANDARDS OF THE NATIONAL9
ASSOCIATION FOR VETERAN RIGHTS .10
(12) A
PERSON WHO VIOLATES A PROVISION OF THIS SECTION11
ENGAGES IN A DECEPTIVE TRADE PRACTICE .12
(13) T
HIS SECTION DOES NOT APPLY TO, LIMIT, OR EXPAND THE13
REQUIREMENTS IMPOSED ON AGENTS , ATTORNEYS, OR OTHER14
REPRESENTATIVES ACCREDITED BY THE UNITED STATES DEPARTMENT OF15
VETERANS AFFAIRS AND REGULATED BY THAT AGENCY .16
SECTION 4. In Colorado Revised Statutes, 6-1-105, add (1)(iiii)17
as follows:18
6-1-105. Unfair or deceptive trade practices - definitions. (1) A19
person engages in a deceptive trade practice when, in the course of the20
person's business, vocation, or occupation, the person:21
(iiii) V
IOLATES A PROVISION OF SECTION 6-1-737.22
SECTION 5. Act subject to petition - effective date -23
applicability. (1) This act takes effect January 1, 2026; except that, if a24
referendum petition is filed pursuant to section 1 (3) of article V of the25
state constitution against this act or an item, section, or part of this act26
within the ninety-day period after final adjournment of the general27
HB25-1233
-11- assembly, then the act, item, section, or part will not take effect unless1
approved by the people at the general election to be held in November2
2026 and, in such case, will take effect on the date of the official3
declaration of the vote thereon by the governor.4
(2) This act applies to violations on or after the applicable5
effective date of this act.6
HB25-1233
-12-