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AN ACT relating to the protection of veterans' benefits. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 40 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) For the purposes of this section: 5
(a) "Compensation" means any money, thing of value, or economic benefit 6
conferred on, or received by, any person in r eturn for services rendered, or 7
to be rendered, by himself or herself or another; 8
(b) "Person" means any natural person, corporation, trust, partnership, 9
incorporated or unincorporated association, or any other legal entity; and 10
(c) "Veterans' benefits matter" means the preparation, presentation, or 11
prosecution of any claim affecting any person who has filed or expressed an 12
intent to file a claim for any benefit, program, service, commodity, function, 13
status, or entitlement to which i s determined to pertain to veterans, their 14
dependents, their survivors, or any other individual eligible for such 15
benefits under the laws and regulations administered by the United States 16
Department of Veterans Affairs or the Kentucky Department of Veteran s' 17
Affairs. 18
(2) A person shall not receive any compensation for referring any individual to 19
another person to advise or assist the individual with any veterans' benefits 20
matter. 21
(3) A person shall not receive any compensation for any services rendered in 22
connection with any claim filed within the one (1) year presumptive period of 23
active duty release unless the veteran signs a waiver stating the veteran: 24
(a) Acknowledges he or she is in the presumptive period; 25
(b) Acknowledges there are free benefits claims services available during this 26
period; 27
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(c) Waives the use of the free services; and 1
(d) Agrees to pay for assistance with the veterans' benefits matter. 2
(4) A person seeking to receive compensation for advising, assisting, or consulting 3
any individual wit h any veterans' benefits matter shall, before rendering any 4
services, memorialize all terms regarding the individual's payment of fees for 5
services rendered in a written agreement signed by both parties that specifies: 6
(a) No initial or nonrefundable fee shall be charged; and 7
(b) Fees for representation or assistance shall not include interest and shall not 8
exceed five (5) times the one (1) month increase in benefits, not to exceed 9
twelve thousand five hundred dollars ($12,500). 10
(5) A person seeking to rece ive compensation for advising, assisting, or consulting 11
any individual with any veterans' benefits matter or engaging in the preparation 12
of an initial claim for a fee shall not: 13
(a) Utilize international call centers or data centers for processing any 14
veterans' personal information; 15
(b) Aggressively or directly solicit business regarding any veterans' benefit 16
matter; or 17
(c) Gain direct access to any personal medical, financial, or government 18
benefits log-in, username, or password information. 19
(6) A person s eeking to receive compensation for advising, assisting, or consulting 20
any individual with any veterans' benefits matter may utilize an independent 21
medical professional for a medical exam but shall not utilize a medical 22
professional with whom the person has an employment or business relationship. 23
(7) A person shall not advertise or guarantee, either directly or by implication, that 24
any individual is certain to receive specific veterans' benefits or that any 25
individual is certain to receive a specific level, percentage, or amount of veterans' 26
benefits. 27
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(8) (a) A person shall not advise, assist, or consult for compensation any individual 1
concerning any veterans' benefits matter without clearly providing at the 2
outset of the business relationship the following d isclosure both orally and 3
in writing: 4
"This business is not sponsored by, or affiliated with, the United States 5
Department of Veterans Affairs or the Kentucky Department of Veterans' 6
Affairs, or any other federally chartered veterans' service organization . 7
Other organizations, including but not limited to the Kentucky Department 8
of Veterans' Affairs, a local veterans' service organization, and other 9
federally chartered veterans' service organizations, may be able to provide 10
you with this service free of ch arge. Products or services offered by this 11
business are not necessarily endorsed by any of these organizations. You 12
may qualify for other veterans' benefits beyond the benefits for which you 13
are receiving services here." 14
(b) The written disclosure in paragraph (a) of this subsection shall appear in at 15
least twelve (12) point font and shall appear in a readily noticeable and 16
identifiable place in the person's agreement with the individual seeking 17
services. The individual shall verbally acknowledge understand ing of the 18
oral disclosure and sign the document in which the written disclosure 19
appears to represent understanding of these provisions. The person offering 20
services shall retain a copy of the written disclosure while providing 21
veterans' benefits services for compensation to the individual and for at 22
least one (1) year after the date on which the service relations terminate. 23
(9) A person that receives compensation for advising, assisting, or consulting any 24
individual with any veterans' benefits matter for t he individual's initial disability 25
claims shall report annually by December 1 to the Kentucky Department of 26
Veterans' Affairs identifying information of the person to include the: 27
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(a) Name or names under which the person conducts business; and 1
(b) Address of principal place of business and address of any office maintained 2
in Kentucky; 3
(10) A person that receives compensation for advising, assisting, or consulting any 4
individual with any veterans' benefits matter for the individual's initial disability 5
claims shall, within one hundred twenty (120) days of the request by Kentucky 6
Department of Veterans' Affairs, submit a report for the reporting year, with the 7
following information: 8
(a) Aggregate number of veterans served in Kentucky; 9
(b) Number of veterans' benefits claims approved, denied, and pending; 10
(c) Average claim return time; and 11
(d) Number of veterans who received a successful increase who have a 12
previously-assigned agent of record in a veterans' benefits matter. 13
Data provided shall exclude any items of personal financial, medical, or other 14
data deemed confidential, business privileged, or HIPPA-protected information. 15
(11) The Kentucky Department of Veterans' Affairs may, by administrative regulation 16
promulgated in accordance with KRS Chapter 13A, create and display on its 17
website a form to assist persons in providing the information required in 18
subsections (9) and (10) of this section. 19
(12) A violation of any provision of this section shall constitute an unfair, fa lse, 20
misleading, or deceptive act or practice in the conduct of trade or commerce 21
under KRS 367.170. 22
(13) Notwithstanding this section, an attorney or law firm seeking to receive 23
compensation for advising, assisting, or consulting any individual with any 24
veterans' benefits matter shall be governed by the limitations set forth in 38 25
C.F.R. sec. 14.636. 26