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 behaviors 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.)
Federal law governs whether, when, and how much a service provider may charge for preparing, presenting, or prosecuting a claim for veterans' benefits (veterans' benefits matter). However, criminal penalties for violations of the federal law are no longer in force.
The bill makes it a deceptive trade practice under the "Colorado Consumer Protection Act" for a person to:
- Solicit, contract for, charge, or receive compensation for providing certain services to an individual claiming veterans' benefits (individual), unless the charges are reasonable and otherwise permissible under federal law;
- Charge for a referral for assistance with a veterans' benefits matter;
- Guarantee a particular outcome in a veterans' benefits matter; or
- Fail to memorialize in a written, signed agreement all terms regarding an individual's payment of fees for the service.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add 6-1-737 as
Page 2, Line 3follows:
Page 2, Line 46-1-737. Veterans' benefits matters - compensation for
Page 2, Line 5services - written agreements - deceptive trade practice - definitions.
Page 2, Line 6(1) As used in this section, unless the context otherwise
Page 2, Line 7requires:
Page 2, Line 8(a) "Compensation" means payment of money, a thing of
Page 2, Line 9value, or a financial benefit.
Page 2, Line 10(b) "Person" has the meaning set forth in section 6-1-102;
Page 2, Line 11except that, for purposes of this section, "person" also includes
Page 2, Line 12a state or local government or governmental subdivision,
Page 2, Line 13agency, or instrumentality.
Page 2, Line 14(c) "Veteran" means a person who served in the active
Page 2, Line 15military, naval service, air service, or space force of the United
Page 2, Line 16States, regardless of the person's discharge status. "Veteran"
Page 2, Line 17includes a person serving or who served in the National Guard
Page 3, Line 1or as a reservist.
Page 3, Line 2(d) "Veterans' benefits matter" means the preparation,
Page 3, Line 3presentation, or prosecution of a claim affecting an individual
Page 3, Line 4who has filed or expressed an intent to file a claim for a benefit,
Page 3, Line 5program, service, commodity, function, or status, the
Page 3, Line 6entitlement to which is determined pursuant to the laws and
Page 3, Line 7regulations administered by the United States department of
Page 3, Line 8veterans affairs or the United States department of defense
Page 3, Line 9that pertain to a veteran, a veteran's dependent, a veteran's
Page 3, Line 10survivor, or another eligible individual.
Page 3, Line 11(2) A person shall not solicit, contract for, charge, or
Page 3, Line 12receive , or attempt to solicit, contract for, charge, or receive,
Page 3, Line 13compensation for performing any of the following acts unless
Page 3, Line 14the amount of the compensation is reasonable pursuant to 38
Page 3, Line 15U.S.C. sec. 5904, as the section existed on the effective date of
Page 3, Line 16this act, and the compensation is otherwise permitted under
Page 3, Line 17federal law:
Page 3, Line 18(a) Preparing, presenting, or prosecuting a veterans'
Page 3, Line 19benefits matter on behalf of an individual; or
Page 3, Line 20(b) Advising, consulting with, or assisting an individual
Page 3, Line 21concerning a veterans' benefits matter.
Page 3, Line 22(3) A person shall not solicit, contract for, charge, or
Page 3, Line 23receive, or attempt to solicit, contract for, charge, or receive,
Page 3, Line 24any compensation for referring an individual to another person
Page 3, Line 25for performance of a service described in subsection (2)(a) or
Page 3, Line 26(2)(b) of this section.
Page 3, Line 27(4) A person shall not guarantee, either directly or by
Page 4, Line 1implication, a particular outcome in a veterans' benefits matter,
Page 4, Line 2including that an individual is certain to receive specific
Page 4, Line 3veterans' benefits or that an individual is certain to receive a
Page 4, Line 4specific level, percentage, or amount of veterans' benefits.
Page 4, Line 5(5) A person seeking compensation for providing a service
Page 4, Line 6described in subsection (2)(a) or (2)(b) of this section shall,
Page 4, Line 7before rendering the service, memorialize in a written
Page 4, Line 8agreement all terms regarding an individual's payment of fees
Page 4, Line 9for the service. The written agreement must be signed by both
Page 4, Line 10parties and must comply with the fee agreement provisions of 38
Page 4, Line 11U.S.C. sec. 5904, as the section existed on the effective date of
Page 4, Line 12this act.
Page 4, Line 13(6) A person who violates a provision of this section
Page 4, Line 14engages in a deceptive trade practice.
Page 4, Line 15SECTION 2. In Colorado Revised Statutes, 6-1-105, add (1)(iiii)
Page 4, Line 16as follows:
Page 4, Line 176-1-105. Unfair or deceptive trade practices - definitions.
Page 4, Line 18(1) A person engages in a deceptive trade practice when, in the course of
Page 4, Line 19the person's business, vocation, or occupation, the person:
Page 4, Line 20(iiii) Violates a provision of section 6-1-737.
Page 4, Line 21SECTION 3. Act subject to petition - effective date -
Page 4, Line 22applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 4, Line 23the expiration of the ninety-day period after final adjournment of the
Page 4, Line 24general assembly; except that, if a referendum petition is filed pursuant
Page 4, Line 25to section 1 (3) of article V of the state constitution against this act or an
Page 4, Line 26item, section, or part of this act within such period, then the act, item,
Page 4, Line 27section, or part will not take effect unless approved by the people at the
Page 5, Line 1general election to be held in November 2026 and, in such case, will take
Page 5, Line 2effect on the date of the official declaration of the vote thereon by the
Page 5, Line 3governor.
Page 5, Line 4(2) This act applies to violations on or after the applicable
Page 5, Line 5effective date of this act.