Assigned to MABS FOR
COMMITTEE
*pending committee assignment
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
veterans' benefits; claims; prohibition.
Purpose
Establishes requirements and procedures that a person assisting with veterans' benefits must fulfill prior to receiving compensation for such services.
Background
The Arizona Department of Veterans' Services
(ADVS) duties include: 1) assisting veterans, family members of veterans and
dependents of veterans in presenting, providing and establishing claims,
privileges, rights and benefits provided under federal, state or local law;
2) cooperating with all government and private agencies receiving services for
or benefits to veterans, family members of veterans and dependents of veterans;
3) entering into agreements with veterans' organizations in Arizona that hold a
charter granted by the U.S. Congress for the beneficial interest of veterans;
4) evaluating programs offered by educational institutions and training
establishments pursuant to federal and state law, so that veterans and
dependents of veterans may draw the educational allowance provided by federal
law while pursuing approved programs; and 5) establishing an application
process for the Arizona Gold Star Military Medal, verifying the eligibility of
recipients and, if funding is available, awarding the Medal to an eligible
individual (A.R.S.
§ 41-603).
The U.S. Department of Veterans Affairs (U.S. VA) is an agency of the federal government that provides benefits, health care and cemetery services to military veterans. The Veterans Benefits Administration within the U.S. VA is responsible for initial veteran registration, eligibility determination and administration of nonmedical benefits, including home loan guarantees, insurance, vocational training, education and pension compensation. The U.S. VA maintains a directory of recognized veterans' service organizations that are sometimes used to assist with applications for veterans benefits and appeals (U.S. VA).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a person from receiving compensation for referring an individual to another person to advise, consult or assist the individual regarding a veterans' benefits matter.
2. Allows a person to receive compensation for advising, consulting or assisting an individual with a veterans' benefits matter if, before providing any services to the individual, the person prepares a written agreement that is signed by all parties involved and contains:
a) the terms of the agreement, including the payment amount for the services being provided; and
b) a disclosure written in 12-point font, in a readily noticeable and easily identifiable place stating that the business is not sponsored, endorsed by or affiliated with ADVS or the U.S. VA or other federally chartered veterans' service organizations, and that specified organizations may be able to provide the veteran with the same services free of charge.
3. Prohibits a person from charging an initial fee or a nonrefundable fee for advising, consulting or assisting an individual regarding a veterans' benefits matter.
4. Requires any compensation received regarding a veterans' benefits matter to be contingent on the veteran's benefits being increased.
5. Caps compensation at five times the amount of the veteran's increase in benefits.
6. Prohibits a person advising, consulting or assisting with veterans' benefits matters from:
a) guaranteeing that the individual will receive a specific veterans' benefit or a specific level, percentage or amount of veterans' benefits;
b) receiving compensation for any services provided regarding a veterans' benefits matter that is filed within the one-year presumptive period of active duty release, unless the individual acknowledges in writing before any services are provided that the individual is still within the one-year presumptive period of active duty release;
c) advertising services regarding veterans' benefits matters without including the prescribed disclosure;
d) employing a medical provider to conduct a secondary medical examination;
e) using an international call center or data center for processing a veteran's personal information; and
f) gaining direct access to any veteran's personal medical, financial or government benefits information.
7. Stipulates that the prescribed disclosure must be:
a) placed in a readily noticeable and easily identifiable area on a printed advertisement; or
b) stated clearly in a verbal advertisement.
8. States a violation of the requirements for advising, consulting or assisting an individual with a veterans' benefits matter constitutes an unfair, false, misleading or deceptive act or practice in the conduct of trade or commerce under the laws of Arizona.
9. Allows the Attorney General to bring an action in superior court against a person that violates the requirements for imposition of a civil penalty.
10. Requires any civil penalties collected to be deposited in the State Homes for Veterans Trust Fund.
11. Clarifies that the outlined prohibitions may not limit, expand or apply to the requirements imposed on agents, attorneys or other representatives who are accredited and regulated by the U.S. VA.
12. Defines a person as including any corporation, trust, partnership, incorporated or unincorporated association or any other legal entity.
13. Defines a veterans' benefits matter as any benefit, program, service, commodity, function or status the entitlement to which is determined by the ADVS or the U.S. VA pertaining to veterans, veterans' dependents, veterans' survivors and any other individual eligible for such benefits.
14. Defines compensation as any money, item of value or economic benefit conferred on or received by an individual in return for services provided by a person.
15. Makes technical and conforming changes.
16. Becomes effective on the general effective date.
Prepared by Senate Research
February 6, 2025
KJA/NRG/slp