A Bill for an Act
Page 1, Line 101Concerning persons who provide assistance with veterans'
Page 1, Line 102benefits 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 advises, assists, or consults a veteran, in connection with a claim for veterans' benefits (veterans' benefits matter), to:
- Receive compensation in excess of $12,500 for the service, subject to additional limitations linking permissible compensation to results delivered;
- Receive compensation for referring a veteran to a third party;
- Collect compensation on behalf of a third party engaged to assist with any aspect of a veterans' benefits matter;
- Receive compensation in connection with a claim filed within the one-year period following a veteran's release from active duty without a signed waiver from the veteran;
- Fail to provide a veteran the option of an interest-free payment plan;
- Guarantee a successful outcome in a veterans' benefits matter or engage in certain direct advertising;
- Fail to memorialize the payment terms and certain disclosures in a written, signed business agreement;
- Fail to take various security measures related to veterans' personal information; or
- Fail to remain a member in good standing of a national veterans' benefit trade organization that holds members to ethics and certification standards.
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. Legislative declaration. (1) The general assembly finds and declares that:
Page 2, Line 3(a) Veterans embody courage and sacrifice, defending our
Page 2, Line 4freedoms. Ensuring they receive the benefits they have earned is a moral
Page 2, Line 5obligation shared by all. Supporting veterans honors their service and
Page 2, Line 6ensures they thrive in civilian life while reflecting our values and fulfilling our commitment to those who have safeguarded our nation.
Page 2, Line 7(b) According to 2023 data from the United States department of
Page 2, Line 8veterans affairs, Colorado is home to an estimated 369,000 veterans. The
Page 3, Line 1$2.7 billion in service-connected compensation Colorado's veterans and
Page 3, Line 2veterans' survivors receive each year undeniably improves their quality of life and has a significant impact on the state's economy.
Page 3, Line 3(c) As of mid-January 2025, the United States veterans
Page 3, Line 4administration reports 969,748 pending benefit claims, including
Page 3, Line 5disability compensation and pension claims that normally require a rating
Page 3, Line 6decision. Over a quarter of the pending benefit claims have been active
Page 3, Line 7for 125 days or longer and are considered backlogged. Colorado's
Page 3, Line 8veterans have 17,433 pending claims, and 4,235 of them are backlogged. The average processing time for a Colorado veteran's claim is 135 days.
Page 3, Line 9(d) By assisting with the preparation of a veteran's benefit claim,
Page 3, Line 10professional, trained, and ethical individuals can help reduce the time that
Page 3, Line 11the veterans administration requires to process the claim once it is submitted;
Page 3, Line 12(e) State and local veterans service officers and veterans
Page 3, Line 13associations, including the veterans of foreign wars, American legion, and
Page 3, Line 14disabled American veterans, as well as attorneys and agents accredited by
Page 3, Line 15the United States department of veterans affairs, continue to provide free
Page 3, Line 16claims preparation services that hold great value for veterans and deserve
Page 3, Line 17our support. However, the large volume of benefit claims exceeds the combined capacity of these organizations and individuals.
Page 3, Line 18(f) The private sector, which includes non-accredited consultants
Page 3, Line 19that are not acting as agents or attorneys, has stepped forward to assist
Page 3, Line 20and offer options for those who choose to forego the free services of
Page 3, Line 21veterans service officers and veterans associations. While the majority of
Page 3, Line 22for-profit service providers deliver quality services in a transparent and
Page 3, Line 23ethical manner, there will always be some that prey on veterans who are unsuspecting or simply desperate for help.
Page 4, Line 1(g) Because of the predatory practices of some providers of claims
Page 4, Line 2preparation services, consumer protections are necessary to safeguard
Page 4, Line 3Colorado's veterans and ensure that only legitimate for-profit entities
Page 4, Line 4operate in the state to provide choice and capacity in the preparation of veterans' benefits claims.
Page 4, Line 5SECTION 2. In Colorado Revised Statutes, 6-1-112, amend (1)(a), (1)(b), and (1)(c); and add (4) as follows:
Page 4, Line 66-1-112. Civil penalties - definition. (1) The attorney general or
Page 4, Line 7a district attorney may bring a civil action on behalf of the state to seek the imposition of civil penalties as follows:
Page 4, Line 8(a) Except as provided in
subsection (3)Page 4, Line 9of this section, any person who violates or causes another to violate any
Page 4, Line 10provision of this article 1 shall forfeit and pay to the general fund of this
Page 4, Line 11state a civil penalty of not more than twenty thousand dollars for each
Page 4, Line 12such violation. For purposes of this subsection (1)(a), a violation of any
Page 4, Line 13provision shall constitute a separate violation with respect to each consumer or transaction involved.
Page 4, Line 14(b) Except as provided in
subsection (3)Page 4, Line 15of this section, any person who violates or causes another to violate any
Page 4, Line 16court order or injunction issued pursuant to this article 1 shall forfeit and
Page 4, Line 17pay to the general fund of this state a civil penalty of not more than ten
Page 4, Line 18thousand dollars for each such violation. For the purposes of this section,
Page 4, Line 19the court issuing the order or injunction
shall retainPage 4, Line 20and the cause
shall bePage 4, Line 21or a district attorney may petition the court for the recovery of the civil
Page 4, Line 22penalty. Such civil penalty
shall bePage 5, Line 1remedy available for the enforcement of the provisions of this article 1 and any court order or injunction.
Page 5, Line 2(c) Except as provided in
subsection (3)Page 5, Line 3of this section, any person who violates or causes another to violate any
Page 5, Line 4provision of this article 1,
wherePage 5, Line 5against an elderly person, shall forfeit and pay to the general fund of the
Page 5, Line 6state a civil penalty of not more than fifty thousand dollars for each such
Page 5, Line 7violation. For purposes of this subsection (1)(c), a violation of any
Page 5, Line 8provision of this article 1 is a separate violation with respect to each elderly person involved.
Page 5, Line 9(4) The attorney general or district attorney shall
Page 5, Line 10transmit any civil penalty collected in accordance with this
Page 5, Line 11section for a violation described in section 6-1-105 (1)(iiii) to the
Page 5, Line 12state treasurer for deposit in the Colorado state veterans trust fund created in section 28-5-709.
Page 5, Line 13SECTION 3. In Colorado Revised Statutes, add 6-1-737 as follows:
Page 5, Line 146-1-737. Veterans' benefits matters - compensation for
Page 5, Line 15services - written agreements - advertising - disclosures - deceptive
Page 5, Line 16trade practice - definitions. (1) As used in this section, unless the context otherwise requires:
Page 5, Line 17(a) "Compensation" means any money, thing of value, or
Page 5, Line 18economic benefit conferred on or received by a person in return
Page 5, Line 19for services rendered or to be rendered by the person or another.
Page 5, Line 20(b) "Person" has the meaning set forth in section 6-1-102.
Page 5, Line 21(c) "Veteran" means a person who served in the active
Page 6, Line 1military, naval, or air force service of the United States and
Page 6, Line 2who was discharged or released under conditions other than
Page 6, Line 3dishonorable, in accordance with U.S.C. title 38. "Veteran"
Page 6, Line 4includes an eligible member of the reserves or national guard,
Page 6, Line 5a veteran's dependent, a veteran's survivor, or another
Page 6, Line 6individual eligible for a benefit pursuant to the laws and
Page 6, Line 7regulations administered by the United States department of
Page 6, Line 8veterans affairs or the Colorado department of military and veterans affairs.
Page 6, Line 9(d) "Veterans' benefits matter" means the preparation,
Page 6, Line 10presentation, or prosecution of a claim affecting a veteran who
Page 6, Line 11has filed or expressed an intent to file a claim for a benefit,
Page 6, Line 12program, service, commodity, function, status, or entitlement
Page 6, Line 13for which the veteran may be eligible pursuant to the laws and
Page 6, Line 14regulations administered by the United States department of
Page 6, Line 15veterans affairs or the Colorado department of military and veterans affairs.
Page 6, Line 16(2) (a) A person may only be compensated for advising,
Page 6, Line 17assisting, or consulting a veteran on a veterans' benefits matter
Page 6, Line 18if the person secures an increase in the benefits awarded.
Page 6, Line 19Compensation for advising, assisting, or consulting a veteran on
Page 6, Line 20a federal veterans' administration disability claim must not
Page 6, Line 21exceed five times the amount of any increase in monthly benefits
Page 6, Line 22awarded as a result of the person's advice, assistance, or consultation.
Page 6, Line 23(b) The compensation calculated pursuant to subsection
Page 6, Line 24(2)(a) of this section must not exceed twelve thousand five hundred dollars.
Page 7, Line 1(c) A person shall not receive any compensation for
Page 7, Line 2advising, assisting, or consulting a veteran on a veterans'
Page 7, Line 3benefits matter beyond the compensation calculated pursuant
Page 7, Line 4to subsections (2)(a) and (2)(b) of this section. The prohibition on additional compensation extends to, but is not limited to:
Page 7, Line 5(I) An initial or nonrefundable fee;
Page 7, Line 6(II) Compensation received on behalf of a third person
Page 7, Line 7engaged to advise, assist, or consult on an aspect of a veterans' benefits matter; or
Page 7, Line 8(III) Compensation for referring a veteran to a third
Page 7, Line 9person to advise, assist, or consult on a veterans' benefits matter.
Page 7, Line 10(3) A person advising, assisting, or consulting on a
Page 7, Line 11veterans' benefits matter shall not receive compensation for
Page 7, Line 12services rendered in connection with a claim filed within the
Page 7, Line 13one-year period following a veteran's release from active duty
Page 7, Line 14during which the United States department of veterans affairs
Page 7, Line 15presumes certain disabling conditions are service-connected,
Page 7, Line 16unless the veteran acknowledges by signing a waiver that the
Page 7, Line 17veteran is within the one-year period and chooses to decline free services that are available.
Page 7, Line 18(4) A person advising, assisting, or consulting on a
Page 7, Line 19veterans' benefits matter for compensation shall provide a
Page 7, Line 20veteran the option of an interest-free payment plan of not longer than one year.
Page 7, Line 21(5) A person advising, assisting, or consulting on a
Page 8, Line 1veterans' benefits matter shall not guarantee, either directly
Page 8, Line 2or by implication, a successful outcome in a veterans' benefits
Page 8, Line 3matter, including that a veteran is certain to receive specific
Page 8, Line 4veterans' benefits or that a veteran is certain to receive a specific level, percentage, or amount of veterans' benefits.
Page 8, Line 5(6) A person advising, assisting, or consulting on a
Page 8, Line 6veterans' benefits matter for compensation shall not directly
Page 8, Line 7advertise or market to an individually identified veteran,
Page 8, Line 8residence, or business location. The prohibition on direct
Page 8, Line 9advertising and marketing does not include communicating via
Page 8, Line 10telephone, mail, or electronic communication, if initiated by a veteran.
Page 8, Line 11(7) A person seeking compensation for advising, assisting,
Page 8, Line 12or consulting on a veterans' benefits matter shall, before
Page 8, Line 13rendering any services, memorialize the specific terms under
Page 8, Line 14which the amount of compensation will be determined and paid in a written business agreement signed by both parties.
Page 8, Line 15(8) (a) A person advising, assisting, or consulting on a
Page 8, Line 16veterans' benefits matter for compensation shall provide the
Page 8, Line 17following disclosure in the written business agreement required pursuant to subsection (7) of this section:
Page 8, Line 18This business is not sponsored by or affiliated with
Page 8, Line 19the United States Department of Veterans Affairs
Page 8, Line 20or the Colorado Department of Military and
Page 8, Line 21Veterans Affairs, or any other federally chartered
Page 8, Line 22veterans' service organization. Other
Page 8, Line 23organizations, including, but not limited to, the
Page 9, Line 1Colorado Department of Military and Veterans
Page 9, Line 2Affairs, a local veterans' service organization and
Page 9, Line 3other federally chartered veterans' service
Page 9, Line 4organizations, may provide this service free of
Page 9, Line 5charge or might not endorse this service. You may
Page 9, Line 6qualify for other veterans' benefits outside the scope of this business agreement.
Page 9, Line 7(b) If a person, or an employee, contractor, or
Page 9, Line 8subcontractor of the person, who is advising, assisting, or
Page 9, Line 9consulting on a veterans' benefits matter for compensation is
Page 9, Line 10not accredited by the United States veterans administration
Page 9, Line 11pursuant to the requirements of 38 CFR 14.629, the person shall
Page 9, Line 12disclose the lack of accreditation along with a clear
Page 9, Line 13explanation of what it means to lack accreditation. A person
Page 9, Line 14advising, assisting, or consulting on a veterans' benefits matter
Page 9, Line 15for compensation shall provide the accreditation disclosure
Page 9, Line 16required pursuant to this subsection (8)(b) in the written
Page 9, Line 17agreement required pursuant to subsection (7) of this section, in
Page 9, Line 18a conspicuous location on the person's website, and in a
Page 9, Line 19conspicuous location at the person's physical address, if applicable.
Page 9, Line 20(9) The disclosures required pursuant to subsection (8) of
Page 9, Line 21this section must appear in bold-faced font in at least
Page 9, Line 22twelve-point type in an easily identifiable place in the business
Page 9, Line 23agreement. The veteran shall sign the page on which each
Page 9, Line 24disclosure appears to represent an understanding of its terms.
Page 9, Line 25The person advising, assisting, or consulting on a veterans'
Page 10, Line 1benefits matter for compensation shall retain a copy of the
Page 10, Line 2written business agreement containing the disclosure for at
Page 10, Line 3least one year after the date on which the service relationship with the veteran terminates.
Page 10, Line 4(10) (a) A person advising, assisting, or consulting on a veterans' benefits matter for compensation shall not:
Page 10, Line 5(I) Use international call centers or data centers for processing veterans' personal information;
Page 10, Line 6(II) Use a veteran's personal log-in credentials to access
Page 10, Line 7the veteran's medical, financial, or government benefits information; or
Page 10, Line 8(III) Disclose personal data obtained in connection with a
Page 10, Line 9veterans' benefits matter to a third person, unless the disclosure is made pursuant to a court order.
Page 10, Line 10(b) A person advising, assisting, or consulting on a veterans' benefits matter for compensation shall:
Page 10, Line 11(I) Complete a criminal background check of a person
Page 10, Line 12prior to permitting the person to access a veteran's medical,
Page 10, Line 13financial, or government benefits information. The background
Page 10, Line 14check must be conducted by a reputable source and include identity verification and a criminal history record check.
Page 10, Line 15(II) Safeguard a veteran's medical data in compliance with
Page 10, Line 16federal and state privacy laws, including the federal "Health
Page 10, Line 17Insurance Portability and Accountability Act of 1996", 42 U.S.C. sec. 1320d to 1320d-9.
Page 10, Line 18(11) A person advising, assisting, or consulting on a
Page 10, Line 19veterans' benefits matter for compensation shall remain a
Page 11, Line 1member in good standing of the national association for veteran
Page 11, Line 2rights or a national veterans' benefit trade organization that
Page 11, Line 3has established for employees, contractors, and subcontractors
Page 11, Line 4of the organization's members both a code of ethics and
Page 11, Line 5technical certification standards equivalent to the code of
Page 11, Line 6ethics and technical certification standards that apply to a
Page 11, Line 7veterans service officer certified by the United States
Page 11, Line 8department of veterans affairs and equivalent to the code of
Page 11, Line 9ethics and technical certification standards of the national association for veteran rights.
Page 11, Line 10(12) A person who violates a provision of this section engages in a deceptive trade practice.
Page 11, Line 11(13) This section does not apply to, limit, or expand the
Page 11, Line 12requirements imposed on agents, attorneys, or other
Page 11, Line 13representatives accredited by the United States department of veterans affairs and regulated by that agency.
Page 11, Line 14SECTION 4. In Colorado Revised Statutes, 6-1-105, add (1)(iiii) as follows:
Page 11, Line 156-1-105. Unfair or deceptive trade practices - definitions. (1) A
Page 11, Line 16person engages in a deceptive trade practice when, in the course of the person's business, vocation, or occupation, the person:
Page 11, Line 17(iiii) Violates a provision of section 6-1-737.
Page 11, Line 18SECTION 5. Act subject to petition - effective date -
Page 11, Line 19applicability. (1) This act takes effect January 1, 2026; except that, if a
Page 11, Line 20referendum petition is filed pursuant to section 1 (3) of article V of the
Page 11, Line 21state constitution against this act or an item, section, or part of this act
Page 11, Line 22within the ninety-day period after final adjournment of the general
Page 12, Line 1assembly, then the act, item, section, or part will not take effect unless
Page 12, Line 2approved by the people at the general election to be held in November
Page 12, Line 32026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
Page 12, Line 4(2) This act applies to violations on or after the applicable effective date of this act.