25.855.11 100th Legislative Session 1238
2025 South Dakota Legislature
House Bill 1238
ENROLLED
AN ACT
ENTITLED An Act to establish protections for a veteran seeking assistance in a
veterans' benefit matter.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That a NEW SECTION be added to chapter 33A-2:
For the purposes of this Act, terms mean:
(1) “Compensation,” any money, thing of value, or economic benefit conferred on, or
received by, any person in return for services rendered, or to be rendered, by any
person;
(2) “Veterans’ benefits matter,” the preparation, presentation, or prosecution of any
claim affecting any individual who has filed, or has expressed an intent to file, a
claim for any benefit, commodity, entitlement, function, program, service, or
status, for which a veteran, a dependent of a veteran, a survivor of a veteran, or
any other individual is eligible under the laws and regulations administered by the
United States Department of Veterans Affairs or the South Dakota Department of
Veterans Affairs.
Section 2. That a NEW SECTION be added to chapter 33A-2:
Before rendering a service to advise, assist, or consult an individual in connection
with a veterans' benefits matter, a person shall disclose the terms of the service and
compensation for the service, in a written agreement that is signed by both parties. The
person offering the services shall retain a copy of the written agreement for one year
following the termination of the service.
In an easily identifiable place in the written agreement, the person offering services
shall disclose that:
(1) The person is not sponsored by or affiliated with:
(a) The United States Department of Veterans' Affairs; 25.855.11 2 1238
HB1238 ENROLLED
(b) The South Dakota Department of Veterans' Affairs; or
(c) Any other federally chartered veterans' service organization;
(2) Other organizations may provide the same service free of charge;
(3) The products or services offered by the person are not necessarily endorsed by any
veterans' organization; and
(4) The individual receiving the service may qualify for other veterans' benefits beyond
those offered by the person.
Section 3. That a NEW SECTION be added to chapter 33A-2:
When providing a service to advise, assist, or consult an individual in connection
with a veterans' benefits matter, a person may not:
(1) Charge:
(a) An initial fee; or
(b) A nonrefundable fee;
(2) Guarantee, either directly or by implication:
(a) A successful outcome;
(b) The reception of a specific veterans' benefit; or
(c) The reception of a level, percentage, or amount of a veterans' benefit;
(3) Receive compensation for a service rendered in connection with a claim filed within
the one-year presumptive period of release from active duty, unless the individual
requesting the service signs a waiver stating that the individual:
(a) Is within the one-year presumptive period of active duty release; and
(b) Has chosen to deny free services available to the individual; or
(4) Use:
(a) International call centers or data centers for processing veterans’ personal
information; or
(b) A veteran’s personal log-in, username, or password information to access
that veteran’s medical, financial, or government benefits information.
Any compensation received for a service to advise, assist, or consult an individual
in connection with a veterans' benefits matter must be contingent upon an increase in the
benefit awarded to the individual and must not exceed an amount equal to five times the
monthly increase in benefits awarded based on the claim.
No person may receive compensation for referring an individual to another person
to advise or assist the individual with any veterans’ benefits matter. 25.855.11 3 1238
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Section 4. That a NEW SECTION be added to chapter 33A-2:
Before a person may be authorized to access veterans’ medical or financial
information, the person must submit to and pass a background check. The background
check must be conducted by a reputable source and include identity verification and a
criminal records check.
Section 5. That a NEW SECTION be added to chapter 33A-2:
The attorney general may impose a civil penalty against a person for violating
sections 2 to 4, inclusive, of this Act. The amount of the civil penalty may not exceed five
thousand dollars. The attorney general shall forward any civil penalty collected under this
section to the state treasurer for deposit in the veterans affairs department special
revenue fund.
Section 6. That a NEW SECTION be added to chapter 33A-2:
Nothing in this Act applies to, limits, or expands the requirements imposed on
agents, attorneys, or other representatives accredited or regulated by the United States
Department of Veterans Affairs. 25.855.11 4 1238
HB1238 ENROLLED
An Act to establish protections for a veteran seeking assistance in a veterans' benefit matter.
I certify that the attached Act originated in
the:
House as Bill No. 1238
Chief Clerk
Speaker of the House
Attest:
Chief Clerk
President of the Senate
Attest:
Secretary of the Senate
House Bill No. 1238
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________,
2025 at ____________M.
By
for the Governor
The attached Act is hereby
approved this ________ day of
______________, A.D., 2025
Governor
STATE OF SOUTH DAKOTA ,
ss.
Office of the Secretary of State
Filed ____________, 2025
at _________ o'clock __M.
Secretary of State
By
Asst. Secretary of State