HB1423
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.
AI-Generated Summary
This bill, titled the "Governing Unaccredited Representatives Defrauding (GUARD) VA Benefits Act," aims to prevent unethical conduct and improper fee collection by individuals who assist veterans with filing claims for benefits. It establishes a cause of action under Arkansas law to address such issues. The bill prohibits any person from receiving compensation for preparing, presenting, prosecuting, advising on, or consulting about a veterans' benefits matter, unless specifically permitted by federal law. This prohibition also extends to receiving compensation for referring individuals to others for these services. The legislation allows for fee divisions between attorneys if they comply with professional conduct rules. It mandates that individuals receiving compensation for assisting with veterans' claims adhere to the same ethical standards as attorneys in Arkansas, including rules on advertising, solicitation, and confidentiality. Violations are classified as deceptive and unfair trade practices, constituting a Class A misdemeanor under the Deceptive Trade Practices Act.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill, if enacted, would be veterans and their dependents seeking benefits from the Department of Veterans Affairs. By prohibiting unauthorized individuals from charging fees and by holding those who do assist to attorney-level ethical standards, the bill aims to protect veterans from potential fraud, deceptive practices, and excessive fees. This could lead to veterans receiving more of their entitled benefits without undue financial burden or exploitation from unscrupulous actors. Additionally, legitimate legal professionals and accredited veteran service organizations who operate within established ethical and legal frameworks may benefit from a more regulated and trustworthy environment for assisting veterans.
Who Might Suffer?
The groups most directly negatively impacted by this bill would be individuals or entities who operate as "unaccredited representatives" and charge fees for assisting veterans with their benefits claims, but are not authorized to do so under federal law. This includes individuals or businesses that may not adhere to the same professional conduct standards as attorneys. These entities would be prohibited from receiving compensation for their services, potentially affecting their business models. Furthermore, veterans who rely on these unaccredited individuals for assistance might face challenges if these representatives are forced to cease operations or if the prohibition leads to fewer accessible avenues for claim preparation and presentation outside of federally accredited services.