S 1176: Establishes certain protections related to the receipt of compensation for advising or assisting with veterans' benefits matters, including penalties for violations.

  
  STATE OF NEW YORK ________________________________________________________________________ 1176 2025-2026 Regular Sessions  IN SENATE January 8, 2025 ___________ Introduced by Sen. MATTERA -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Securi- ty and Military Affairs AN ACT to amend the general business law, in relation to prohibiting persons from receiving compensation for advising or assisting with veterans' benefits The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general business law is amended by adding a new section 2 399-ppp to read as follows: 3 § 399-ppp. Veterans' benefits consumer fraud and abuse prevention. 1. 4 For the purposes of this section, the following terms shall have the 5 following meanings: 6 (a) "Veterans' benefits matter" shall mean the preparation, presenta- 7 tion, or prosecution of any claim affecting any individual who has filed 8 or expressed an intent to file a claim for any benefit, program, 9 service, commodity, function, or status pertaining to veterans, such 10 veterans' dependents, such dependents' survivors, and any other individ- 11 ual eligible for such benefits pursuant to federal laws and regulations 12 administered by the United States department of veterans affairs or the 13 veterans' services law. 14 (b) "Compensation" shall mean payment of any money, thing of value, or 15 financial benefit. 16 (c) "Person" shall mean an individual, corporation, business trust, 17 estate, trust, partnership, limited liability company, association, 18 joint venture, public corporation, government or governmental subdivi- 19 sion, agency, or instrumentality, or any other legal or commercial enti- 20 ty. 21 2. (a) No person shall receive compensation for advising or assisting 22 an individual with regard to any veterans' benefits matter, except as 23 permitted under federal law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03717-01-5 
 S. 1176 2 1 (b) No person shall receive compensation for referring an individual 2 to another person to advise or assist such individual with any veterans' 3 benefits matter. 4 (c) A person seeking to receive compensation for advising or assisting 5 an individual with any veterans' benefits matter shall, before rendering 6 any services, prepare a written agreement, signed by both parties, that: 7 (i) contains all terms regarding such individual's payment of fees for 8 services rendered relating to any veterans' benefits matter; and 9 (ii) adheres to all criteria specified within 38 C.F.R. § 14.636. 10 (d) No person shall receive any compensation for any services rendered 11 before the date on which a federal notice of disagreement is filed with 12 respect to the individual's case. 13 (e) No person shall guarantee, either directly or by implication, that 14 an individual shall receive specific veterans' benefits, or a specific 15 level, percentage, or amount of veterans' benefits. 16 (f) No person shall receive excessive or unreasonable fees, as deter- 17 mined pursuant to 28 C.F.R. § 14.636, as compensation for advising or 18 assisting an individual with a veterans' benefits matter. 19 3. (a) (i) A person seeking to receive compensation for advising or 20 assisting an individual with any veterans' benefits matter shall, before 21 rendering any services, clearly provide, orally and in writing, the 22 following disclosure: 23 "This business is not sponsored by, or affiliated with, the United 24 States department of veterans affairs or the New York department of 25 veterans' services, or any other federally chartered veterans' services 26 organization. Other organizations, including but not limited to the New 27 York department of veterans' services, your local county veterans' 28 services agencies, and other federally chartered veterans' services 29 organizations, may be able to provide you with this service free of 30 charge. Products or services offered by this business are not necessar- 31 ily endorsed by any of these organizations. You may qualify for other 32 veterans' benefits beyond the benefits for which you are receiving 33 services here." 34 (ii) The written disclosure required pursuant to subparagraph (i) of 35 this paragraph shall appear in at least twelve-point font and shall 36 appear in a readily noticeable and identifiable place in the written 37 agreement required pursuant to paragraph (c) of subdivision two of this 38 section. The individual shall verbally acknowledge understanding of the 39 oral disclosure and shall sign the document in which the written disclo- 40 sure appears to affirm such individual's understanding of these 41 provisions. The person advising or assisting such individual with a 42 veterans' benefits matter shall retain a copy of such written disclosure 43 for the duration of such service and for at least one year after the 44 date on which such service relationship terminates. 45 (b) (i) A person advertising for compensation services to an individ- 46 ual in regard to a veterans' benefits matter shall include the following 47 disclosure: 48 "This business is not sponsored by, or affiliated with, the United 49 States department of veterans affairs or the New York department of 50 veterans' services, or any other federally chartered veterans' services 51 organization. Other organizations, including but not limited to the New 52 York department of veterans' services, your local county veterans' 53 services agencies, and other federally chartered veterans' services 54 organizations, may be able to provide you with this service free of 55 charge. Products or services offered by this business are not necessar- 
 S. 1176 3 1 ily endorsed by any of these organizations. You may qualify for other 2 veterans' benefits beyond the services that this business offers." 3 (ii) If such advertisement is printed, including but not limited to 4 advertisements visible to internet users, the disclosure required pursu- 5 ant to subparagraph (i) of this paragraph shall appear in a readily 6 visible place on such advertisement. If such advertisement is verbal, 7 the spoken statement of the disclosure shall be clear and intelligible. 8 4. Any violation of the provisions of this section shall be a class A 9 misdemeanor, and upon conviction thereof, shall be punishable by a fine 10 of not more than one thousand dollars, or by imprisonment for not more 11 than one year, or by both such fine and imprisonment; provided, however, 12 that a second or subsequent offense shall be punishable by a fine of not 13 more than three thousand dollars, or by imprisonment for not more than 14 one year, or by both such fine and imprisonment. In addition, the court 15 may order as part of the sentence imposed restitution or reparation to 16 the victim of the crime pursuant to section 60.27 of the penal law. The 17 attorney general shall have the power to prosecute any violation of this 18 section. 19 § 2. This act shall take effect immediately.