STAND. COM. REP. NO. 2925

Honolulu, Hawaii

RE: S.B. No. 608

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Judiciary, to which was referred S.B. No. 608, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO VETERANS RIGHTS AND BENEFITS,"

beg leave to report as follows:

The purpose and intent of this measure is to regulate persons receiving compensation for providing advice or assistance regarding veterans benefits.

Your Committees received testimony in support of this measure from the Department of Defense, Veterans of Foreign Wars Hawaii, and two individuals.

Your Committees received testimony in opposition to this measure from Veteran Benefits Guide, the Veterans Caucus of the Democratic Party of Hawaii, and two individuals.

Your Committees received comments on this measure from Capitol Consultants of Hawaii on behalf of Veteran Benefits Guide and one individual.

Your Committees find that there is a gray market of "consultants" or companies, which are often not accredited by the Department of Veterans Affairs and operate outside federal fee caps and oversight, that charge veterans high fees for medical consulting or coaching services for submission of United States Department of Veterans Affairs claims. This measure would provide safeguards from potential "claim sharks" and increase transparency for veterans seeking support.

Your Committees have amended this measure by:

(1) Deleting language that would have prohibited a person from receiving excessive or unreasonable compensation for preparing, presenting, or prosecuting; or advising, consulting, or assisting an individual with, any veterans benefits matter as governed by federal law;

(2) Deleting language that would have required any written agreement for compensation related to any veterans benefits matter to adhere to all criteria specified in federal law regarding the payment of fees for services rendered;

(3) Inserting language that clarifies written agreement requirements, prescribes certain limitations on compensation for services provided, and prohibits a person from charging initial fees for advising, assisting, or consulting an individual in connection with any veterans benefits matter; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 608, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 608, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ JARRETT KEOHOKALOLE, Chair