TO PROHIBIT A PERSON FROM RECEIVING COMPENSATION FOR THE PREPARATION, PRESENTATION, OR PROSECUTION OF A CLAIM WITH REGARD TO A VETERANS' BENEFITS MATTER EXCEPT AS AUTHORIZED BY FEDERAL LAW.

2025 Regular Session Introduced by Stan Berry and 12 co-sponsors

HB 1423 protects veterans by banning unauthorized compensation for assistance with benefits claims, ensuring ethical support and preventing exploitation by unaccredited representatives.

Died in House Committee at Sine Die adjournment.

Summary of House Bill 1423

Bill Number: HB 1423
Title: To Prohibit a Person from Receiving Compensation for the Preparation, Presentation, or Prosecution of a Claim with Regard to a Veterans' Benefits Matter Except as Authorized by Federal Law
Status: Died in House Committee at Sine Die adjournment
Introduced: February 06, 2025
Classification: Bill

Purpose and Intent

House Bill 1423 aims to regulate the compensation of individuals who assist veterans in filing claims for benefits with the Department of Veterans Affairs (VA). The bill seeks to prevent unethical practices and the improper collection of fees by unaccredited representatives who may exploit veterans seeking benefits.

Key Provisions

The bill introduces a new subchapter to the Arkansas Code, titled the Governing Unaccredited Representatives Defrauding (GUARD) VA Benefits Act, which includes the following provisions:

Definition of Terms:

Compensation: Refers to any payment, financial benefit, or valuable item received for services related to veterans' benefits.
Person: Includes individuals and various legal entities such as corporations and partnerships.
Veterans' Benefits Matter: Encompasses any claim or assistance related to benefits administered by the VA.

Prohibition on Compensation:

Individuals are prohibited from receiving compensation for:
- Preparing, presenting, or prosecuting claims for veterans' benefits.
- Advising or assisting individuals regarding veterans' benefits matters, unless authorized under federal law (specifically Title 38 U.S.C. § 5904 and 38 C.F.R. § 14.629).
Referrals to other individuals for assistance in veterans' benefits matters are also prohibited from being compensated.

Ethical Standards:

Individuals receiving compensation for veterans' benefits assistance must adhere to the same ethical standards as attorneys under the Arkansas Rules of Professional Conduct, including rules on advertising, client solicitation, and confidentiality.

Penalties:

Violations of this act are classified as deceptive and unfair trade practices, constituting a Class A misdemeanor under the Deceptive Trade Practices Act.

Impact

The bill is designed to protect veterans from potential exploitation by unaccredited representatives who may charge fees for assistance that should be provided without charge or under specific federal guidelines. By enforcing ethical standards and prohibiting unauthorized compensation, the legislation aims to ensure that veterans receive fair and honest assistance in navigating their benefits claims.

Legislative Timeline

February 06, 2025: Bill filed.

February 17, 2025: Read for the first time, rules suspended, read a second time, and referred to the Joint Committee on Military and Veterans Affairs.

May 05, 2025: Bill died in House Committee at Sine Die adjournment.

This summary provides an overview of HB 1423, highlighting its purpose, key provisions, and the implications for veterans and those assisting them in claims for benefits.