S2818 —

S2818 SMV Statement 8/20/20 SENATE MILITARY AND VETERANS' AFFAIRS COMMITTEE   STATEMENT TO   SENATE, No.

2818  STATE OF NEW JERSEY 219th LEGISLATURE   INTRODUCEDDATED: AUGUST 13, 2020     Sponsored by:

Senator  AUGUST VIN20, GOPAL2020 District  11      (Monmouth)The Senator Senate JOSEPHMilitary PENNACCHIOand DistrictVeterans 26Affairs (Essex,Committee Morrisreports andfavorably Passaic)Senate  Bill Co-SponsoredNo. by:

Senator2818. Brown         SYNOPSIS      Prohibits persons from receiving compensation for advising or assisting with veterans benefits.

       CURRENTThe VERSIONbill OFmakes TEXTit     a Asviolation introduced.of the consumer fraud act for persons to receive compensation for advising or assisting, or referring any individual to another person to advise or assist, with any veterans benefits matter, except as is permitted under federal law.

        AnUnder Actthe concerningbill, veteransa "veterans benefits matter" means the preparation, presentation, or prosecution of any claim affecting any person who has filed or expressed an intent to file a claim for any benefit, program, service, commodity, function, or status, entitlement to which is determined under the laws and supplementingregulations P.L.1960,administered c.39by (C.56:8-1the etUnited seq.).States Department of Veterans Affairs or the New Jersey Department of Military and Veterans Affairs pertaining to veterans, their dependents, their survivors, and any other individual eligible for such benefits.

           Under Bethe Itbill, Enactedno byperson may receive any fees for any services rendered before the Senatedate andon Generalwhich Assemblya notice of disagreement is filed with respect to  the Stateindividual's case, guarantee, either directly or by implication, that any individual is certain to receive specific veterans benefits or that any individual is certain to receive a specific level, percentage, or  amount  of Newveterans Jersey:benefits, or receive excessive or unreasonable fees as compensation for advising or assisting any individual with any veterans benefits matter.

           The 1.   bill a.also requires that a person seeking to receive compensation for advising or assisting any individual with any veterans benefits matter shall, before rendering any services, memorialize all terms regarding the individual's payment of fees for services rendered in a written  agreement, signed by both parties, that adheres to all criteria specified within 38 C.F.R.

 (1)s.14.636.   No      Under the bill, no person shallmay receiveadvise compensationor assist for advisingcompensation or assistingadvertise anyfor-compensation individualservices withto regardadvise toor anyassist in a veterans benefits matter,matter exceptwithout asmaking permittedan underoral federaland law.a written disclosure.

          (2)  An Nounlawful personpractice shallunder receivethe compensationconsumer forfraud referringact anyis individualpunishable toby anothera personmonetary topenalty adviseof ornot assistmore thisthan individual$10,000 withfor anya veteransfirst benefitsoffense matter.and not more than $20,000 for any subsequent offense.

     (3)   A person seeking to receive compensation for advising or assisting any individual with any veterans benefits matter shall, before rendering any services, memorialize all terms regarding the individual's payment of fees for services rendered in a written  agreement, signed by both parties, that adheres to all criteria specified within 38 C.F.R.

s.14.636.

     (4)   No person shall receive any compensation for any services rendered before the date on which a notice of disagreement is filed with respect to the individual's case.

     (5)   No person shall guarantee, either directly or by implication, that any individual is certain to receive specific veterans benefits or that any individual is certain to receive a specific level, percentage, or amount of veterans benefits.

     (6)  No person shall receive excessive or unreasonable fees as compensation for advising or assisting any individual with any veterans benefits matter.

 The factors articulated within 38 C.F.R.

s.14.636 shall govern determinations of whether a fee is excessive or unreasonable.

     b.    (1)  No person shall advise or assist for compensation any individual concerning any veterans benefits matter without clearly providing, at the outset of the business relationship, the  following  disclosure, both orally and in writing:

     "This business is not sponsored by, or affiliated with, the United States Department of Veterans Affairs or the New Jersey Department of Military and Veterans Affairs, or any other federally chartered veterans service organization.  Other organizations, including but not limited to the New Jersey Department of Military and Veterans Affairs, your local county veterans service agency, and other federally chartered veterans service organizations, may be able to provide you with this service free of charge.

 Products or services offered by this business are not necessarily endorsed by any of these organizations.  You may qualify for other veterans benefits beyond the benefits for which you are receiving services here."      The written disclosure shall appear in at least twelve-point font and shall appear in a readily noticeable and identifiable place in the person's agreement with the individual seeking services.  The individual shall verbally acknowledge understanding of the oral disclosure and shall sign the document in which the written disclosure appears, to represent understanding of these provisions.

 The person offering services shall retain a copy of the written disclosure while providing veterans benefits services for compensation to the individual and for at least one year after the date on which the service relationship terminates.

     (2)   No person shall advertise for-compensation services in veterans benefits matters without including the following disclosure:

     “This business is not sponsored by, or affiliated with, the United States Department of Veterans Affairs or the New Jersey Department of Military and Veterans Affairs, or any other federally chartered veterans service organization.

other organizations, including but not limited to the New Jersey Department of Military and Veterans Affairs, your local county veterans service agency, and other federally chartered veterans service organizations, may be able to provide you with these services free of charge.

 Products or services offered by this business are not necessarily endorsed by any of these organizations.

 You may qualify for other veterans benefits beyond the services that this business offers."      If the advertisement is printed, including but not limited to advertisements visible to internet users, the disclosure shall appear in a readily visible place on the advertisement.

 If the advertisement is verbal, the spoken statement of the disclosure shall be clear and intelligible.

     c.     A violation of the provisions of this act shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.).

     d.    As used in this section:

     "Veterans benefits matter" means the preparation, presentation, or prosecution of any claim affecting any person who has filed or expressed an intent to file a claim for any benefit, program, service, commodity, function, or status, entitlement to which is determined under the laws and regulations administered by the United States Department of Veterans Affairs or the New Jersey Department of Military and Veterans Affairs pertaining to veterans, their dependents, their survivors, and any other individual eligible for such benefits.

     “Compensation” means payment of any money, thing of value, or financial benefit.

     “Person” means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.

       2.    This act shall take effect immediately.

STATEMENT        The bill makes it a violation of the consumer fraud act for persons to receive compensation for advising or assisting, or referring any individual to another person to advise or assist, with any veterans benefits matter, except as is permitted under federal law.

     Under the bill, a "veterans benefits matter" means the preparation, presentation, or prosecution of any claim affecting any person who has filed or expressed an intent to file a claim for any benefit, program, service, commodity, function, or status, entitlement to which is determined under the laws and regulations administered by the United States Department of Veterans Affairs or the New Jersey Department of Military and Veterans Affairs pertaining to veterans, their dependents, their survivors, and any other individual eligible for such benefits.

     Under the bill, no person may receive any fees for any services rendered before the date on which a notice of disagreement is filed with respect to  the individual's case, guarantee, either directly or by implication, that any individual is certain to receive specific veterans benefits or that any individual is certain to receive a specific level, percentage, or  amount  of veterans benefits, or receive excessive or unreasonable fees as compensation for advising or assisting any individual with any veterans benefits matter.

     The bill also requires that a person seeking to receive compensation for advising or assisting any individual with any veterans benefits matter shall, before rendering any services, memorialize all terms regarding the individual's payment of fees for services rendered in a written  agreement, signed by both parties, that adheres to all criteria specified within 38 C.F.R.

s.14.636.

       Under the bill, no person may advise or assist for compensation or advertise for-compensation services to advise or assist in a veterans benefits matter without making an oral and a written disclosure.

     An unlawful practice under the consumer fraud act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense.