Bill
SB 1103
SB 1103 strengthens Michigan veterans' benefits protections: requires accredited representation, strict fee rules, data safeguards, and clear disclosures for benefit services.
Status & Introductory Information
- Bill number: SB 1103
- Title: Amend MCL 445.903k (Michigan Consumer Protection Act) to enhance protections for individuals applying for veterans’ benefits (adds disability benefits)
- Introduced: February 5, 2025 (bill information); committee materials dated Nov–Dec 2024.
- Current status (per provided bill information): Placed on second reading.
- Fiscal impact: Nonpartisan analyses conclude no fiscal impact on state or local government.
Purpose / Intent
- To protect veterans and their families from predatory for‑profit actors who assist with benefit claims and to set minimum standards for compensation, representation, disclosures, and data protection when private parties provide veterans’ benefit services — specifically extending these protections to disability benefits.
Key provisions (what the bill would do)
- Expand definition: “Veterans’ benefit service” is explicitly expanded to include claims for disability benefits (in addition to pension, medical, etc.).
- Accreditation requirement for representation: Only individuals accredited under applicable federal laws/regulations (e.g., VA‑accredited agents/attorneys) may represent a veteran or family member as an agent or attorney. Unaccredited individuals may provide only non‑representative services.
- Limits and conditions on compensation (for initial disability benefit claims):
- Written fee agreement required, signed by both parties, specifying how compensation is determined.
- Compensation must be purely contingent on an increase in awarded benefits; cap = no more than 5× the monthly increase awarded. No initial or nonrefundable fees allowed.
- No compensation may be taken for claims filed within the one‑year presumptive period after active‑duty release unless the veteran signs a waiver acknowledging denial of available free services.
- Data protection and access controls:
- Prohibits use of international call centers/data centers for veterans’ personal information.
- Prohibits use of a veteran’s personal log‑in, username, or password to access medical/financial/government benefits accounts.
- Requires background checks (identity verification and criminal records check) for anyone granted access to veterans’ medical or financial information. (This background check requirement does not apply to VA‑accredited agents/attorneys.)
- Required disclosures and advertising rules:
- Parties must disclose non‑affiliation with government or recognized VSOs when applicable and that free services may be available.
- Public events/seminars about veterans’ benefits must include a standard disclosure clarifying non‑affiliation and that benefits discussed may not be exhaustive or guaranteed.
- Prohibitions:
- Using personal/financial information gathered for other purposes to provide veterans’ benefit services (unless requirements are met).
- Receiving compensation for referring a veteran to a VA‑accredited individual.
- Representing or implying that a particular level of benefits is guaranteed.
Who is affected
- Primary beneficiaries: veterans and their family members applying for disability (and other) benefits.
- Regulated parties: for‑profit firms, consultants, agents, attorneys, and other persons engaged in trade/commerce offering veterans’ benefit services in Michigan.
- Exemptions: government employees, volunteers acting in official capacity, and VA‑accredited agents/attorneys (some requirements do not apply to them).
Enforcement and remedies
- Violations are treated as unfair trade practices under the Michigan Consumer Protection Act. Remedies available under the Act include statutory or actual damages (minimum $250), reasonable attorney fees, injunctions, and civil enforcement actions by the Attorney General or prosecuting attorneys (including potential fines and class actions).
Brief rationale
- Committee materials note concerns that some for‑profit entities exploit veterans seeking benefits; the bill aims to curb deceptive or predatory practices and strengthen protections around fees, representation, privacy, and disclosures.
Compiled from official sources — confirm details with the bill’s official record.
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