A Bill for an Act
Page 1, Line 101Concerning persons who provide services related to
Page 1, Line 102veterans' benefits claims, and, in connection therewith,
Page 1, Line 103establishing that certain actions by such persons are
Page 1, Line 104deceptive trade practices under the "Colorado
Page 1, Line 105Consumer Protection Act".
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill makes it a deceptive trade practice under the "Colorado Consumer Protection Act" for a person who consults with, advises, or assists a veteran, in connection with a claim for veterans' benefits (veterans' benefits matter), to:
- Receive compensation in excess of the lesser of $9,000 or 20% of the amount of any past-due benefits the veteran actually receives after the person procures an increase in the veteran's monthly benefits;
- Receive compensation in connection with a claim filed within the one-year period following a veteran's release from active duty;
- Guarantee a successful outcome in a veterans' benefits matter;
- Fail to memorialize the payment terms and certain disclosures in a written, signed contract;
- Omit certain disclosures from advertising or make false representations about accreditation;
- Fail to take various security measures related to veterans' personal information; or
- Provide services in connection with an appeal or review of the veterans administration's initial decision in a veterans' benefits matter.
The bill requires the attorney general or district attorney to transmit any civil penalty collected for a violation of the veterans' benefits matter provisions to the state treasurer for deposit in the Colorado state veterans trust fund.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 6-1-112, amend (1)(a), (1)(b), and (1)(c); and add (4) as follows:
Page 2, Line 36-1-112. Civil penalties - definition. (1) The attorney general or
Page 2, Line 4a district attorney may bring a civil action on behalf of the state to seek the imposition of civil penalties as follows:
Page 2, Line 5(a) Except as provided in
subsection (3)Page 2, Line 6of this section, any person who violates or causes another to violate any
Page 2, Line 7provision of this article 1 shall forfeit and pay to the general fund of this
Page 2, Line 8state a civil penalty of not more than twenty thousand dollars for each
Page 2, Line 9
suchPage 3, Line 1provision
shall constitutePage 3, Line 2(b) Except as provided in
subsection (3)Page 3, Line 3of this section, any person who violates or causes another to violate any
Page 3, Line 4court order or injunction issued pursuant to this article 1 shall forfeit and
Page 3, Line 5pay to the general fund of this state a civil penalty of not more than ten
Page 3, Line 6thousand dollars for each
suchPage 3, Line 7the court issuing the order or injunction
shall retainPage 3, Line 8and the cause
shall bePage 3, Line 9or a district attorney may petition the court for the recovery of the civil
Page 3, Line 10penalty.
Suchshall bePage 3, Line 11or remedy available for the enforcement of the provisions of this article 1 and any court order or injunction.
Page 3, Line 12(c) Except as provided in
subsection (3)Page 3, Line 13of this section, any person who violates or causes another to violate any
Page 3, Line 14provision of this article 1,
wheresuchPage 3, Line 15committed against an elderly person, shall forfeit and pay to the general
Page 3, Line 16fund of the state a civil penalty of not more than fifty thousand dollars for
Page 3, Line 17each
suchPage 3, Line 18any provision of this article 1 is a separate violation with respect to each elderly person involved.
Page 3, Line 19(4) The attorney general or district attorney shall
Page 3, Line 20transmit any civil penalty collected in accordance with this
Page 3, Line 21section for a violation described in section 6-1-105 (1)(iiii) to the
Page 3, Line 22state treasurer for deposit in the Colorado state veterans trust fund created in section 28-5-709.
Page 3, Line 23SECTION 2. In Colorado Revised Statutes, add 6-1-737 as follows:
Page 4, Line 16-1-737. Veterans' benefits matters - compensation for
Page 4, Line 2services - written agreements - advertising - disclosures - deceptive
Page 4, Line 3trade practice - definitions. (1) As used in this section, unless the context otherwise requires:
Page 4, Line 4(a) "Compensation" means any money, thing of value, or
Page 4, Line 5economic benefit conferred on or received by a person in return
Page 4, Line 6for services rendered or to be rendered by the person or another.
Page 4, Line 7(b) "Person" has the same meaning as set forth in section 6-1-102.
Page 4, Line 8(c) "Veteran" means a person who served in the active
Page 4, Line 9military, naval, or air force service of the United States and
Page 4, Line 10who was discharged or released under conditions other than
Page 4, Line 11dishonorable, in accordance with U.S.C. title 38. "Veteran"
Page 4, Line 12includes an eligible member of the reserves or national guard,
Page 4, Line 13a veteran's dependent, a veteran's survivor, or another
Page 4, Line 14individual eligible for a benefit pursuant to the laws and
Page 4, Line 15regulations administered by the United States department of
Page 4, Line 16veterans affairs or the Colorado department of military and veterans affairs.
Page 4, Line 17(d) "Veterans' benefits matter" means the preparation,
Page 4, Line 18presentation, or prosecution of a claim affecting a veteran who
Page 4, Line 19has filed or expressed an intent to file a claim for a benefit,
Page 4, Line 20program, service, commodity, function, status, or entitlement
Page 4, Line 21for which the veteran may be eligible pursuant to the laws and
Page 4, Line 22regulations administered by the United States department of
Page 5, Line 1veterans affairs or the Colorado department of military and veterans affairs.
Page 5, Line 2(2) (a) A person may only be compensated for consulting
Page 5, Line 3with, advising, or assisting a veteran on a veterans' benefits
Page 5, Line 4matter if the person secures an increase in the benefits awarded.
Page 5, Line 5Compensation for consulting with, advising, or assisting a
Page 5, Line 6veteran on a veterans' benefits matter must not exceed the
Page 5, Line 7lesser of nine thousand dollars or twenty percent of any
Page 5, Line 8past-due benefits a veteran actually receives after an increase
Page 5, Line 9in monthly benefits is awarded as a result of the person's consultation, advice, or assistance.
Page 5, Line 10(b) A person shall not receive any compensation for
Page 5, Line 11consulting with, advising, or assisting a veteran on a veterans'
Page 5, Line 12benefits matter beyond the compensation calculated pursuant
Page 5, Line 13to subsection (2)(a) of this section. The prohibition on additional
Page 5, Line 14compensation extends to, but is not limited to, an initial or nonrefundable fee.
Page 5, Line 15(3) A person consulting, advising, or assisting on a
Page 5, Line 16veterans' benefits matter shall not receive compensation in
Page 5, Line 17connection with a claim filed within the one-year period
Page 5, Line 18following a veteran's release from active duty during which the
Page 5, Line 19United States department of veterans affairs presumes certain disabling conditions are service-connected.
Page 5, Line 20(4) A person consulting, advising, or assisting on a
Page 5, Line 21veterans' benefits matter shall not guarantee, either directly
Page 5, Line 22or by implication, a successful or specific outcome in a veterans'
Page 5, Line 23benefits matter, including that a veteran is certain to receive
Page 6, Line 1specific veterans' benefits or that a veteran is certain to receive a specific level, percentage, or amount of veterans' benefits.
Page 6, Line 2(5) A person seeking compensation for consulting,
Page 6, Line 3advising, or assisting on a veterans' benefits matter shall,
Page 6, Line 4before rendering any services, memorialize in readable, clear,
Page 6, Line 5and unambiguous language in a written contract signed by both
Page 6, Line 6parties the terms and conditions of the agreement for services,
Page 6, Line 7including a description of the services; the disclosures required
Page 6, Line 8pursuant to subsection (6)(a) of this section; and how the amount of compensation is determined and paid.
Page 6, Line 9(6) (a) A person consulting, advising, or assisting on a
Page 6, Line 10veterans' benefits matter for compensation shall provide the
Page 6, Line 11following disclosure in the contract required pursuant to subsection (5) of this section and in all advertising:
Page 6, Line 12This business is not sponsored by or affiliated with
Page 6, Line 13the United States Department of Veterans Affairs
Page 6, Line 14or the Colorado Department of Military and
Page 6, Line 15Veterans Affairs, or any other federally chartered
Page 6, Line 16veterans' service organization. Other
Page 6, Line 17organizations, including, but not limited to, the
Page 6, Line 18Colorado Department of Military and Veterans
Page 6, Line 19Affairs, a local veterans' service organization and
Page 6, Line 20other federally chartered veterans' service
Page 6, Line 21organizations, may provide this service free of
Page 6, Line 22charge or might not endorse this service. You may
Page 6, Line 23qualify for other veterans' benefits services outside
Page 6, Line 24the scope of what this business offers. All disability
Page 7, Line 1claims for increased ratings are processed by the
Page 7, Line 2United States department of veterans affairs. This
Page 7, Line 3business cannot expedite the processing of your
Page 7, Line 4claim by the United States department of veterans affairs.
Page 7, Line 5(b) A person consulting, advising, or assisting on a
Page 7, Line 6veterans' benefits matter for compensation shall ensure that
Page 7, Line 7the disclosure required pursuant to subsection (6)(a) of this
Page 7, Line 8section is clearly and conspicuously displayed in any print or
Page 7, Line 9visual advertising medium, communicated at a volume and
Page 7, Line 10cadence sufficient to be readily audible and understandable in
Page 7, Line 11any audio advertising medium, or otherwise intelligible as appropriate to the advertising medium.
Page 7, Line 12(7) A person consulting, advising, or assisting on a
Page 7, Line 13veterans' benefits matter for compensation shall not make a
Page 7, Line 14false representation that the person is a representative of a
Page 7, Line 15veterans' service organization, a claims agent, or an attorney,
Page 7, Line 16who is accredited by the United States veterans administration
Page 7, Line 17to assist veterans in the preparation, presentation, or prosecution of benefit claims.
Page 7, Line 18(8) (a) A person consulting, advising, or assisting on a veterans' benefits matter for compensation shall not:
Page 7, Line 19(I) Use a veteran's personal log-in credentials to access
Page 7, Line 20the veteran's medical, financial, or government benefits information; or
Page 7, Line 21(II) Disclose personal data obtained in connection with a
Page 7, Line 22veterans' benefits matter to a third person, unless the disclosure is made pursuant to a court order.
Page 8, Line 1(b) A person consulting, advising, or assisting on a
Page 8, Line 2veterans' benefits matter for compensation shall safeguard a
Page 8, Line 3veteran's personal, financial, and medical information in
Page 8, Line 4compliance with federal and state privacy laws, including the
Page 8, Line 5federal "Health Insurance Portability and Accountability Act of 1996", 42 U.S.C. sec. 1320d to 1320d-9.
Page 8, Line 6(9) If a veteran dies before a claim is processed by the
Page 8, Line 7United States department of veterans affairs or the Colorado
Page 8, Line 8department of military and veterans affairs, a person
Page 8, Line 9consulting, advising, or assisting on the veterans' benefits
Page 8, Line 10matter shall not collect compensation in connection with the
Page 8, Line 11veterans' benefits matter. The death of the veteran immediately
Page 8, Line 12terminates a contract or payment plan for services the person performs in connection with the veterans' benefits matter.
Page 8, Line 13(10) Following an initial decision by the United States
Page 8, Line 14department of veterans affairs in a veterans' benefits matter, a
Page 8, Line 15person who is not accredited by the United States department of
Page 8, Line 16veterans affairs shall not consult, advise, assist, or offer other services in connection with an appeal or review of the decision.
Page 8, Line 17(11) A person who violates a provision of this section engages in a deceptive trade practice.
Page 8, Line 18(12) This section does not apply to agents, attorneys, or
Page 8, Line 19other representatives accredited by the United States department of veterans affairs and regulated by that agency.
Page 8, Line 20SECTION 3. In Colorado Revised Statutes, 6-1-105, add (1)(iiii)
Page 8, Line 21as follows:
Page 9, Line 16-1-105. Unfair or deceptive trade practices - definitions. (1) A
Page 9, Line 2person engages in a deceptive trade practice when, in the course of the person's business, vocation, or occupation, the person:
Page 9, Line 3(iiii) Violates a provision of section 6-1-737.
Page 9, Line 4SECTION 4. Act subject to petition - effective date. This act
Page 9, Line 5takes effect at 12:01 a.m. on the day following the expiration of the
Page 9, Line 6ninety-day period after final adjournment of the general assembly; except
Page 9, Line 7that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 9, Line 8of the state constitution against this act or an item, section, or part of this
Page 9, Line 9act within such period, then the act, item, section, or part will not take
Page 9, Line 10effect unless approved by the people at the general election to be held in
Page 9, Line 11November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.