VETERANS: Provides relative to certain services provided to veterans. (gov sig)
Summary
SB 208 revises Louisiana law governing paid services offered to veterans in connection with veterans’ benefits claims. The bill adds a new prohibition on receiving compensation for services rendered on a claim for a veteran who has never received a disability rating, and it also bars businesses that prepare initial disability claims or appeals for a fee from charging a termination fee except for payment tied to actual work already performed. The measure retains existing restrictions on certain veterans’ benefits services and keeps in place the general framework that regulates paid claims assistance.
The bill also creates a private right of action for veterans against a person who collected or sought a fee where negligent or reckless conduct caused a reduction in disability rating, denial of benefits, or delay that caused economic loss. Successful plaintiffs may recover actual damages, lost retroactive benefits, diminished monthly compensation, and attorney fees, and treble damages are available for intentional misconduct. In addition, entities assisting with initial disability claims must provide annualized data to the Department of Veterans Affairs, while excluding confidential, privileged, and HIPAA-protected information. The bill expressly states that it does not regulate accredited agents, attorneys, or other federally defined representatives before the U.S. Department of Veterans Affairs.
Impact
SB 208 amends R.S. 29:296 and expands Louisiana’s restrictions on paid veterans’ benefits assistance, particularly for companies or individuals handling initial disability claims and appeals. It adds new statutory prohibitions on compensation and termination fees, creates civil liability and damages remedies, and imposes reporting obligations on certain entities assisting veterans. The bill also clarifies that accredited federal representatives and attorneys are outside its regulatory scope, limiting the state law’s reach to non-federally accredited service providers.
Sentiment
The bill appears to have been generally supported in the Senate, passing final passage 37-0, which suggests broad agreement with its consumer-protection approach for veterans. The available record does not show committee testimony or recorded debate, but the amendments indicate an effort to strengthen protections while preserving lawful representation by accredited agents and attorneys. The later procedural note that a conference committee report was rejected in the Senate suggests there may have been unresolved differences near the end of the process, even though the bill initially received unanimous floor support.
Contention
The main points of contention are likely to have centered on how far the state should go in regulating paid veterans’ claims assistance and whether the new private right of action and damages provisions could expose service providers to significant liability. The prohibition on charging termination fees and the ban on compensation for claims involving veterans who have never received a disability rating may also have raised concerns for businesses that assist veterans with claims. At the same time, the bill explicitly carves out accredited agents, attorneys, and federal representatives, indicating an effort to address concerns about interfering with federally regulated representation.