SB608 regulates paid assistance related to veterans benefits claims and other veterans benefits matters. The bill prohibits any person from receiving compensation for preparing, presenting, prosecuting, advising, consulting, or assisting with a veterans benefits matter, and also bars paid referrals to others who provide those services, except where federal law allows it. It further prohibits anyone from guaranteeing that a person will receive specific veterans benefits or a particular benefit amount or percentage.
The bill allows compensation only under a written agreement signed before services are provided, and only if the fee is contingent on an increase in benefits awarded. Any such fee is capped at the lesser of five times the monthly increase in benefits or $12,500, and no initial fee may be charged. Violations are treated as unfair or deceptive acts under Hawaii’s consumer protection laws. The bill also exempts accredited representatives, accredited agents or attorneys under federal veterans rules, and Department of Defense employees acting in their official capacity.
Impact
SB608 would add a new part to chapter 363, Hawaii Revised Statutes, creating state-level restrictions on paid veterans benefits consulting and related referral practices. It also adds definitions for compensation, person, and veterans benefits matter, and ties enforcement to Hawaii’s unfair and deceptive acts statutes, including chapter 481A and section 480-2. The measure is designed to protect veterans, dependents, and survivors from misleading or exploitative fee-based claims assistance while preserving federally authorized representation.
Sentiment
The bill appears to have generally favorable support in committee, with multiple committees passing it with amendments and no recorded committee votes against it in the later Senate Judiciary and Commerce and Consumer Protection hearings. The legislative framing emphasizes consumer protection and preventing exploitation of veterans seeking benefits. The bill’s progress suggests broad agreement on the need for regulation, though it was still amended as it moved through the process.
Contention
The main point of contention is the scope of who may be paid to assist with veterans benefits matters and how far the state can go without conflicting with federal law. The bill expressly excludes federally accredited representatives, agents, attorneys, and certain Department of Defense employees, indicating sensitivity to federal preemption and existing authorization schemes. Another likely issue is the fee cap and ban on upfront fees, which restrict business models for private claims consultants and may have prompted scrutiny from affected service providers, even though the recorded votes show limited overt opposition.