SB608 SD2

SECTION 1. The legislature finds that there is a risk of misleading or unfair practices associated with the provision of certain services regarding veterans benefits and emphasizes the necessity of establishing requirements and restrictions to protect veteran consumers from potential exploitation.

Accordingly, the purpose of this Act is to regulate persons receiving compensation for providing advice or assistance regarding veterans benefits, except as permitted under federal law.

SECTION 2. Chapter 363, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . VETERANS BENEFITS

§363- Prohibitions. (a) No person shall receive compensation for:

(1) Preparing, presenting, or prosecuting; or

(2) Advising, consulting, or assisting an individual with,

any veterans benefits matter, except as permitted under federal law.

(b) No person shall receive compensation for referring any individual to another person to:

(1) Prepare, present, or prosecute; or

(2) Advise, consult, or assist the individual with,

any veterans benefits matter.

(c) 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.

§363- Written agreement required; compensation; limitations. (a) A person seeking to receive compensation for advising, assisting, or consulting an individual in connection with any veterans benefits matter, before rendering any services, shall memorialize the specific terms of payment for services rendered in a written agreement signed by both parties.

(b) Any compensation due for services provided according to a written agreement pursuant to subsection (a) shall:

(1) Be contingent upon an increase in benefits awarded; and

(2) Not exceed five times the amount of the monthly increase in benefits, or $12,500, whichever is less.

(c) No person advising, assisting, or consulting an individual on a veterans benefits matter shall charge an initial fee.

§363- Penalty. A violation of this part shall be an unfair or deceptive act or practice under chapter 481A and a violation of section 480-2.

§363- Exceptions. This part does not apply to:

(1) An accredited representative of a recognized organization or an accredited agent or attorney under title 38 Code of Federal Regulations section 14.629; or

(2) An employee of the department of defense operating within that employee's capacity as an employee of the department of defense."

SECTION 3. Chapter 363, Hawaii Revised Statutes, is amended by designating sections 363-1 to 363-13 as part I and inserting a title before section 363-1 to read as follows:

"PART I. GENERAL PROVISIONS"

SECTION 4. Section 363-1, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:

""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.

"Veterans benefits matter" means any claim affecting an individual 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 United States Department of Defense, pertaining to veterans, their dependents, their survivors, and any other individual eligible for such benefits."

SECTION 5. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 7. This Act shall not be applied so as to impair any contract existing as of the effective date of this Act in a manner violative of either the Hawaii State Constitution or Article I, Section 10, of the United States Constitution.

SECTION 8. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2077.

THE SENATE	S.B. NO.	608
THIRTY-THIRD LEGISLATURE, 2025		S.D. 2
STATE OF HAWAII