By: Lopez of Cameron H.B. No. 4693
A BILL TO BE ENTITLED
AN ACT
relating to assistance with veterans benefits claims; authorizing a
civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 434.017(a), Government Code, is amended
to read as follows:
(a) The fund for veterans' assistance is a special fund in
the state treasury outside the general revenue fund. The fund is
composed of:
(1) money transferred to the fund at the direction of
the legislature;
(2) gifts and grants contributed to the fund;
(3) the earnings of the fund;
(4) money transferred to the fund from proceeds of the
lottery game operated under Section 466.027 or transferred to the
fund under Section 466.408(b);
(5) money deposited to the credit of the fund under
Section 502.1746, Transportation Code;
(6) money deposited to the credit of the fund under
Sections 521.008 and 522.0295, Transportation Code;
(7) money deposited to the credit of the fund under
Section 12.007, Parks and Wildlife Code; [and]
(8) money deposited to the credit of the fund under
Section 411.1741; and
(9) money deposited to the credit of the fund under
Section 434.456.
SECTION 2. Chapter 434, Government Code, is amended by
adding Subchapter J to read as follows:
SUBCHAPTER J. ASSISTANCE WITH VETERANS BENEFITS CLAIMS
Sec. 434.451. DEFINITIONS. In this subchapter:
(1) "Compensation" means the payment of money, a
financial benefit, or another thing of value.
(2) "Veterans benefit matter" means a claim by a
veteran, a veteran's dependent or survivor, or any other person for
a benefit, program, service, commodity, function, or status, the
entitlement to which is determined under laws and regulations
administered by the United States Department of Veterans Affairs or
the Texas Veterans Commission.
Sec. 434.452. CONSTRUCTION OF SUBCHAPTER. This subchapter
may not be construed to apply to or limit or expand the requirements
imposed on an agent, attorney, or other representative accredited
by the United States Department of Veterans Affairs and regulated
by that agency.
Sec. 434.453. ASSISTANCE WITH VETERANS BENEFIT MATTER. A
person:
(1) may, as permitted by federal law and subject to
this subchapter, receive compensation for:
(A) preparing, presenting, or prosecuting a
veterans benefit matter; or
(B) advising a person on, consulting with a
person about, or assisting a person with a veterans benefit matter;
(2) may not receive compensation for referring a
person to another person to provide a service described by
Subdivision (1)(A) or (B); and
(3) may not guarantee, either directly or by
implication, a successful outcome or that a person is certain to
receive specific veterans benefits or a specific level, percentage,
or amount of veterans benefits.
Sec. 434.454. REQUIREMENTS AND LIMITATIONS RELATING TO
COMPENSATION. (a) A person may not receive compensation for a
service described by Section 434.453(1)(A) or (B) that is related
to a claim filed during the one-year period immediately following
the date of the veteran's release from active duty, unless the
veteran signs a statement acknowledging that the veteran is within
that period and chooses to waive free services available to the
veteran.
(b) A person may not charge an initial or nonrefundable fee
for providing a service described by Section 434.453(1)(A) or (B).
(c) Compensation for providing a service described by
Section 434.453(1)(A) or (B) must be contingent on the amount of
benefits awarded to a veteran being increased. Compensation may not
exceed five times the amount of the increase in monthly benefits
awarded based on the claim.
(d) A person seeking to receive compensation for providing a
service described by Section 434.453(1)(A) or (B) shall, before
providing the service, memorialize in a written agreement signed by
both parties all terms regarding the payment of fees for services
provided, including the following disclosure in a size equal to at
least 12-point type in a conspicuous place:
"This business is not sponsored by, or affiliated with, the
United States Department of Veterans Affairs or the Texas Veterans
Commission, or any other federally chartered veterans service
organization. Other organizations including but not limited to the
Texas Veterans Commission, a local veterans service organization,
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 in addition to the benefits for which you are receiving
services here."
(e) A person who provides a service described by Section
434.453(1)(A) or (B) shall retain a copy of the written agreement
described by Subsection (d) while providing the service and until
the first anniversary of the date on which the service relationship
is terminated.
(f) A person seeking to receive compensation for a service
described by Section 434.453(1)(A) or (B):
(1) may not use an international call center or data
center to process a veteran's personal information;
(2) may not use a veteran's log-in, username, or
password information to access the veteran's medical, financial, or
government benefits information; and
(3) shall ensure that:
(A) the identity of an individual with access to
a veteran's information under Subdivision (1) or (2) is verified
before accessing the information; and
(B) before accessing the information, a criminal
history background check is completed for an individual with access
to a veteran's information under Subdivision (1) or (2) from:
(i) any law enforcement or criminal justice
agency; or
(ii) a private entity that is a consumer
reporting agency governed by the Fair Credit Reporting Act (15
U.S.C. Section 1681 et seq.).
Sec. 434.455. DECEPTIVE TRADE PRACTICE. A violation of
this subchapter is a deceptive trade practice actionable under
Subchapter E, Chapter 17, Business & Commerce Code.
Sec. 434.456. CIVIL PENALTY. (a) A person who violates
this subchapter is liable to the state for a civil penalty not to
exceed $500 for each violation. Each day a violation continues or
occurs is a separate violation.
(b) The attorney general shall file suit to collect the
civil penalty.
(c) A civil penalty collected under this section shall be
deposited to the credit of the fund for veterans' assistance
established by Section 434.017.
SECTION 3. This Act takes effect September 1, 2025.