UNOFFICIAL COPY 25 RS BR 908
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AN ACT relating to the protection of veterans' benefits. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘SECTION 1. A NEW SECTION OF KRS CHAPTER 40 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Compensation" means any money, thing of value, or economic benefit 6
conferred on or received by any person in return for services rendered, or to 7
be rendered, by himself or herself or another; 8
(b) "Person" means any natural person, corporation, trust, partnership, 9
incorporated or unincorporated association, or any other legal entity; and 10
(c) "Veterans' benefits matter" means the preparation, presentation, or 11
prosecution of any claim affecting any person who has filed or expressed an 12
intent to file a claim for any benefit, program, service, commodity, function, 13
status, or entitlement to which is determined to pertain to veterans, their 14
dependents, their survivors, or any other individual eligible for the benefits 15
under the laws and regulations administered by the United States 16
Department of Veterans Affairs or the Kentucky Department of Veterans' 17
Affairs. 18
(2) A person shall not receive any compensation for referring any individual to 19
another person to advise or assist the individual with any veterans' benefits 20
matter. 21
(3) A person shall not receive any compensation for any services rendered in 22
connection with any claim filed within the one (1) year presumptive period of 23
active duty release. 24
(4) A person seeking to receive compensation for advising, assisting, or consulting 25
any individual with any veterans' benefits matter shall, before rendering any 26
services, memorialize all terms regarding the individual's payment of fees for 27 UNOFFICIAL COPY 25 RS BR 908
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services rendered in a written agreement signed by both parties that specifies: 1
(a) Fees for services are contingent upon a successful outcome, and shall not 2
exceed three (3) times the one (1) month increase in benefits; and 3
(b) An initial or nonrefundable fee shall not be charged. 4
(5) A person seeking to receive compensation for advising, assisting, or consulting 5
any individual with any veterans' benefits matter or engaging in the preparation 6
of an initial claim for a fee shall not: 7
(a) Utilize international call centers or data centers for processing any 8
veteran's personal information; 9
(b) Aggressively or directly solicit business regarding any veterans' benefits 10
matter; or 11
(c) Gain direct access to any personal medical, financial, or government 12
benefits login, username, or password information. 13
(6) A person seeking to receive compensation for advising, assisting, or consulting 14
any individual with any veterans' benefits matter shall not utilize a medical 15
professional for a secondary medical exam with whom they have an employment 16
or business relationship. 17
(7) A person shall not advertise or guarantee, either directly or by implication, that 18
any individual is certain to receive specific veterans' benefits or that any 19
individual is certain to receive a specific level, percentage, or amount of veterans' 20
benefits. 21
(8) (a) A person shall not advise, assist, or consult for compensation any individual 22
concerning any veterans' benefits matter without clearly providing at the 23
outset of the business relationship the following disclosure both orally and 24
in writing: 25
"This business is not sponsored by, or affiliated with, the United States 26
Department of Veterans Affairs or the Kentucky Department of Veterans' 27 UNOFFICIAL COPY 25 RS BR 908
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Affairs, or any other federally chartered veterans' service organization. 1
Other organizations, including but not limited to the Kentucky Department 2
of Veterans' Affairs, a local veterans' service organization, and other 3
federally chartered veterans' service organizations may be able to provide 4
you with this service free of charge. Products or services offered by this 5
business are not necessarily endorsed by any of these organizations. You 6
may qualify for other veterans' benefits beyond the benefits for which you 7
are receiving services here." 8
(b) The written disclosure in paragraph (a) of this subsection shall appear in at 9
least twelve (12) point font and shall appear in a readily noticeable and 10
identifiable place in the person's agreement with the individual seeking 11
services. The individual shall verbally acknowledge understanding of the 12
oral disclosure and sign the document in which the written disclosure 13
appears to represent understanding of these provisions. The person offering 14
services shall retain a copy of the written disclosure while providing 15
veterans' benefits services for compensation to the individual and for at 16
least one (1) year after the date on which the service relations terminate. 17
(9) A violation of this section shall constitute an unfair, false, misleading, or 18
deceptive act or practice in the conduct of trade or commerce under KRS 367.170. 19
(10) Notwithstanding this section, an attorney or law firm seeking to receive 20
compensation for advising, assisting, or consulting any individual with any 21
veterans' benefits matter shall be governed by the limitations set forth in 38 22
C.F.R. sec. 14.636. 23