rules for businesses charging veterans for claims help

The text as introduced · 1,032 words

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.