By: Lopez of Cameron H.B. No. 4693

A BILL TO BE ENTITLED

AN ACT

relating to assistance with veterans benefits claims; authorizing a civil penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 434.017(a), Government Code, is amended to read as follows:

(a) The fund for veterans' assistance is a special fund in the state treasury outside the general revenue fund. The fund is composed of:

(1) money transferred to the fund at the direction of the legislature;

(2) gifts and grants contributed to the fund;

(3) the earnings of the fund;

(4) money transferred to the fund from proceeds of the lottery game operated under Section 466.027 or transferred to the fund under Section 466.408(b);

(5) money deposited to the credit of the fund under Section 502.1746, Transportation Code;

(6) money deposited to the credit of the fund under Sections 521.008 and 522.0295, Transportation Code;

(7) money deposited to the credit of the fund under Section 12.007, Parks and Wildlife Code; [and]

(8) money deposited to the credit of the fund under Section 411.1741; and

(9) money deposited to the credit of the fund under Section 434.456.

SECTION 2. Chapter 434, Government Code, is amended by adding Subchapter J to read as follows:

SUBCHAPTER J. ASSISTANCE WITH VETERANS BENEFITS CLAIMS

Sec. 434.451. DEFINITIONS. In this subchapter:

(1) "Compensation" means the payment of money, a financial benefit, or another thing of value.

(2) "Veterans benefit matter" means a claim by a veteran, a veteran's dependent or survivor, or any other person for a benefit, program, service, commodity, function, or status, the entitlement to which is determined under laws and regulations administered by the United States Department of Veterans Affairs or the Texas Veterans Commission.

Sec. 434.452. CONSTRUCTION OF SUBCHAPTER. This subchapter may not be construed to apply to or limit or expand the requirements imposed on an agent, attorney, or other representative accredited by the United States Department of Veterans Affairs and regulated by that agency.

Sec. 434.453. ASSISTANCE WITH VETERANS BENEFIT MATTER. A person:

(1) may, as permitted by federal law and subject to this subchapter, receive compensation for:

(A) preparing, presenting, or prosecuting a veterans benefit matter; or

(B) advising a person on, consulting with a person about, or assisting a person with a veterans benefit matter;

(2) may not receive compensation for referring a person to another person to provide a service described by Subdivision (1)(A) or (B); and

(3) may not guarantee, either directly or by implication, a successful outcome or that a person is certain to receive specific veterans benefits or a specific level, percentage, or amount of veterans benefits.

Sec. 434.454. REQUIREMENTS AND LIMITATIONS RELATING TO COMPENSATION. (a) A person may not receive compensation for a service described by Section 434.453(1)(A) or (B) that is related to a claim filed during the one-year period immediately following the date of the veteran's release from active duty, unless the veteran signs a statement acknowledging that the veteran is within that period and chooses to waive free services available to the veteran.

(b) A person may not charge an initial or nonrefundable fee for providing a service described by Section 434.453(1)(A) or (B).

(c) Compensation for providing a service described by Section 434.453(1)(A) or (B) must be contingent on the amount of benefits awarded to a veteran being increased. Compensation may not exceed five times the amount of the increase in monthly benefits awarded based on the claim.

(d) A person seeking to receive compensation for providing a service described by Section 434.453(1)(A) or (B) shall, before providing the service, memorialize in a written agreement signed by both parties all terms regarding the payment of fees for services provided, including the following disclosure in a size equal to at least 12-point type in a conspicuous place:

"This business is not sponsored by, or affiliated with, the United States Department of Veterans Affairs or the Texas Veterans Commission, or any other federally chartered veterans service organization. Other organizations including but not limited to the Texas Veterans Commission, a local veterans service organization, and other federally chartered veterans service organizations may be able to provide you with this service free of charge. Products or services offered by this business are not necessarily endorsed by any of these organizations. You may qualify for other veterans benefits in addition to the benefits for which you are receiving services here."

(e) A person who provides a service described by Section 434.453(1)(A) or (B) shall retain a copy of the written agreement described by Subsection (d) while providing the service and until the first anniversary of the date on which the service relationship is terminated.

(f) A person seeking to receive compensation for a service described by Section 434.453(1)(A) or (B):

(1) may not use an international call center or data center to process a veteran's personal information;

(2) may not use a veteran's log-in, username, or password information to access the veteran's medical, financial, or government benefits information; and

(3) shall ensure that:

(A) the identity of an individual with access to a veteran's information under Subdivision (1) or (2) is verified before accessing the information; and

(B) before accessing the information, a criminal history background check is completed for an individual with access to a veteran's information under Subdivision (1) or (2) from:

(i) any law enforcement or criminal justice agency; or

(ii) a private entity that is a consumer reporting agency governed by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.).

Sec. 434.455. DECEPTIVE TRADE PRACTICE. A violation of this subchapter is a deceptive trade practice actionable under Subchapter E, Chapter 17, Business & Commerce Code.

Sec. 434.456. CIVIL PENALTY. (a) A person who violates this subchapter is liable to the state for a civil penalty not to exceed $500 for each violation. Each day a violation continues or occurs is a separate violation.

(b) The attorney general shall file suit to collect the civil penalty.

(c) A civil penalty collected under this section shall be deposited to the credit of the fund for veterans' assistance established by Section 434.017.

SECTION 3. This Act takes effect September 1, 2025.