S 1286

                    LEGISLATURE OF THE STATE OF IDAHO
 Sixty-eighth Legislature  Second Regular Session - 2026
                                 IN THE SENATE
                             SENATE BILL NO. 1286
                  BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1AN ACT
2  RELATING TO CONSUMER PROTECTION OF VETERANS BENEFITS; AMENDING CHAPTER 6,
3      TITLE 48, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 48-603H, IDAHO
4      CODE, TO ESTABLISH PROVISIONS REGARDING VETERANS BENEFITS CONSUMER
5      PROTECTIONS; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE
6      DATE.
7  Be It Enacted by the Legislature of the State of Idaho:
8      SECTION 1. That Chapter 6, Title 48, Idaho Code, be, and the same is
9  hereby amended by the addition thereto of a NEW SECTION, to be known and des-
10 ignated as Section 48-603H, Idaho Code, and to read as follows:
11      48-603H. VETERANS BENEFITS CONSUMER PROTECTIONS. (1) As used in this
12 section:
13      (a) "Compensation" means a payment of any money, thing of value, or fi-
14      nancial benefit.
15      (b) "Veterans benefits matter" means the preparation, presentation, or
16      prosecution of, or advertising or consulting for, any claim affecting
17      any person who has filed or expressed an intent to file a claim for any
18      benefit, program, service, commodity, function, or status to which en-
19      titlement is determined under the laws and regulations administered by
20      the United States department of veterans affairs, the United States de-
21      partment of war, or the Idaho division of veterans services pertaining
22      to veterans, veterans' dependents or survivors, or any other individ-
23      ual eligible for such benefit, program, service, commodity, function,
24      or status.
25      (2)(a) Except as permitted under federal law, no individual shall re-
26      ceive compensation for a veterans benefits matter before the United
27      States department of veterans affairs, the United States department of
28      war, or the Idaho division of veterans services.
29      (b) No person shall receive compensation for referring any individ-
30      ual to another person for a veterans benefits matter before the United
31      States department of veterans affairs, the United States department of
32      war, or the Idaho division of veterans services.
33      (3) Persons not accredited by the United States department of veterans
34 affairs and not acting as agents or attorneys but seeking to receive compen-
35 sation for any veterans benefits matter shall enter into a written fee agree-
36 ment signed by both parties. Such agreement shall provide that compensation
37 is contingent on an increase in benefits awarded, and if successful, compen-
38 sation shall not exceed five (5) times the amount of the monthly increase in
39 benefits awarded based on the claim. No initial or nonrefundable fee may be
40 charged by a person handling a veterans benefits matter.
41      (4) Any person receiving compensation for a veterans benefit matter
42 pursuant to subsection (3) of this section shall provide the following writ-
                                      2
1  ten disclosure clearly and conspicuously before the consumer signs the fee
2  agreement:
3This business is not sponsored by or affiliated with the United
4States Department of Veterans Affairs, the Idaho Division of
5Veterans Services, or any federally chartered veterans service
6organization. Other organizations, including but not limited to
7the Idaho Division of Veterans Services, local veterans service
8organizations, and federally chartered veterans service organiza-
9tions, may be able to provide you with this service free of charge.
10      Products or services offered by this business are not necessarily
11      endorsed by any of these organizations. You may qualify for other
12      veterans benefits beyond the benefits for which you are receiving
13      services here.
14      (5) Any person receiving compensation for a veterans benefits matter
15 under a fee agreement pursuant to subsection (3) of this section:
16      (a) May not utilize international call centers or data centers for pro-
17      cessing veterans' personal information;
18      (b) May not use a veteran's personal log-in, username, or password in-
19      formation to access a veteran's medical, financial, or government bene-
20      fits information;
21      (c) Shall ensure that any individual who has access to a veteran's medi-
22      cal or financial information undergoes a background check prior to hav-
23      ing access to such information. The background check must be conducted
24      by a reputable source and include identity verification and a criminal
25      records check; and
26      (d) May not receive any compensation for any services rendered in con-
27      nection with any claim filed within the one (1) year presumptive period
28      of active-duty release, unless the veteran acknowledges in writing that
29      the veteran is within this period and choosing to deny available free
30      services.
31      (6) Nothing in this section shall be construed as applying to, limit-
32 ing, or expanding the requirements imposed on agents, attorneys, or other
33 representatives accredited and regulated by the United States department of
34 veterans affairs.
35     SECTION 2. An emergency existing therefor, which emergency is hereby
36 declared to exist, this act shall be in full force and effect on and after
37 July 1, 2026.