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HF3216 (Legislative Session 94 (2025-2026))

Certain practices by service providers restricted.

Related bill: SF2396

AI Generated Summary

Purpose of the Bill

The bill aims to regulate service providers who assist veterans in appealing or obtaining federal or state benefits. It seeks to ensure that veterans and their families are protected from exploitation or unethical practices by these service providers.

Main Provisions

  • Advertising Restrictions: Defines what constitutes advertisements or advertising for veteran benefits appeal services and specifies what is excluded from this definition.

  • Compensation Restrictions:

    • Prohibits receiving compensation for merely referring individuals to others for veterans’ benefits services.
    • Prevents charging veterans during the one-year presumptive period following active duty release unless the veteran chooses to waive free services after being informed.
    • Requires a written agreement detailing compensation, which must be contingent upon an increase in benefits awarded, limiting total compensation to five times the monthly benefit increase.
    • Prohibits charging any initial or nonrefundable fees.

  • Outcome Guarantees: Bars providers from guaranteeing successful outcomes or a specific amount of benefits to be received.

  • Data Privacy and Handling:

    • Prohibits the use of international call centers to handle veterans' personal data.
    • Disallows the use of veterans’ login credentials to access their benefits information.
    • Mandates background checks for anyone with access to a veteran’s medical or financial information.

Significant Changes to Existing Law

  • New Limitations and Requirements: Introduces new restrictions and requirements for veterans’ benefits service providers, including limits on compensation, advertising, and data handling practices. It clarifies that these changes do not alter the responsibilities of agents accredited by the Department of Veterans Affairs.

Relevant Terms

veterans benefits appeal services, compensation restrictions, advertising limitations, presumptive period, outcome guarantees, data privacy, veterans affairs, service providers, background checks, Department of Veterans Affairs.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 21, 2025HouseFloorActionIntroduction and first reading, referred toVeterans and Military Affairs Division
April 21, 2025HouseFloorActionIntroduction and first reading, referred toVeterans and Military Affairs Division

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the duties related to the written disclosure statement developed by the commissioner of veterans affairs under section 196.05.",
      "modified": [
        "Clarifies the purpose and use of the written disclosure statement."
      ]
    },
    "citation": "196.05",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference is made to the accreditation of agents, attorneys, or other representatives under United States Code title 38, chapter 59.",
      "modified": [
        "Clarification on applicability for accreditation requirements."
      ]
    },
    "citation": "38",
    "subdivision": "chapter 59"
  }
]

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