An act TO PROHIBIT A PERSON FROM RECEIVING 11 COMPENSATION FOR THE PREPARATION, PRESENTATION, OR 12 PROSECUTION OF A CLAIM WITH REGARD TO A VETERANS' 13 BENEFITS MATTER EXCEPT AS AUTHORIZED BY FEDERAL LAW, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas             A Bill
2 95th General Assembly

3 Regular Session, 2025                                            HOUSE BILL 1423

4

5 By: Representatives Cozart, S. Berry, Breaux, Joey Carr, Hollowell, Milligan, Painter, Richmond, Rye,

6 Torres, Unger, D. Whitaker

7 By: Senator D. Wallace

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9                               For An Act To Be Entitled

10  AN ACT TO PROHIBIT A PERSON FROM RECEIVING

11  COMPENSATION FOR THE PREPARATION, PRESENTATION, OR

12  PROSECUTION OF A CLAIM WITH REGARD TO A VETERANS'

13  BENEFITS MATTER EXCEPT AS AUTHORIZED BY FEDERAL LAW;

14  AND FOR OTHER PURPOSES.

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16

17                              Subtitle

18                        TO PROHIBIT A PERSON FROM RECEIVING

19                        COMPENSATION FOR THE PREPARATION,

20                        PRESENTATION, OR PROSECUTION OF A CLAIM

21                        WITH REGARD TO A VETERANS' BENEFITS

22                        MATTER EXCEPT AS AUTHORIZED BY FEDERAL

23                        LAW.

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25 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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27  SECTION 1. Arkansas Code Title 4, Chapter 88, is amended to add an

28 additional subchapter to read as follows:

29 Subchapter 15 -- Governing Unaccredited Representatives Defrauding (GUARD) VA

30                              Benefits Act

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32  4-88-1501. Title.

33  This subchapter shall be known and may be cited as the "Governing

34 Unaccredited Representatives Defrauding (GUARD) VA Benefits Act".

35

36  4-88-1502. Purpose.

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1   The purpose of this subchapter is to provide a cause of action under

2 the laws of this state to prevent unethical conduct and the improper

3 collection of fees by persons advising or assisting an individual with the

4 filing of a claim for disability benefits before the Department of Veterans

5 Affairs or the United States Department of Veterans Affairs.

6

7   4-88-1503. Definitions.

8   As used in this subchapter:

9             (1) "Compensation" means payment of money, a thing of value, or

10 a financial benefit;

11            (2) "Person" means an individual, corporation, business trust,

12 estate, trust, partnership, limited liability company, joint venture, public

13 corporation, or any other legal or for profit commercial entity; and

14            (3) "Veterans' benefits matter" means the preparation,

15 presentation, or prosecution of a claim affecting a person who has filed or

16 expressed an intent to file a claim for a benefit, program, service,

17 commodity, function, or status, the entitlement to which is determined under

18 the laws and regulations administered by the Department of Veterans Affairs

19 or the United States Department of Veterans Affairs pertaining to veterans,

20 their dependents, their survivors, and any other individual eligible for such

21 benefits.

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23  4-88-1504. Advising or assisting in veterans' benefits matters --

24 Receipt of compensation.

25  (a)(1) A person may not receive compensation for the preparation,

26 presentation, or prosecution of a claim or for advising, consulting, or

27 assisting an individual with regard to a veterans' benefits matter before the

28 Department of Veterans Affairs or the United States Department of Veterans

29 Affairs, except as permitted under Title 38 U.S.C. � 5904, and 38 C.F.R. �

30 14.629.

31            (2) A person may not receive compensation for referring an

32 individual to another person to prepare, present, or prosecute a claim or

33 advise, consult, or assist the individual with a veterans' benefits matter

34 before the Department of Veterans Affairs or the United States Department of

35 Veterans Affairs.

36            (3) Except as provided under subdivision (a)(1) of this section,

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1 this subsection does not prohibit a division of fees between attorneys that

2 is otherwise proper under the American Bar Association's Model Rules of

3 Professional Conduct, Rule 1.5(e).

4   (b) A person who receives compensation for the preparation,

5 presentation, or prosecution of a claim or for advising, consulting, or

6 assisting an individual with regard to a veterans' benefits matter before the

7 Department of Veterans Affairs or the United States Department of Veterans

8 Affairs shall be held to the same ethical standards to which an attorney is

9 held under the Arkansas Rules of Professional Conduct, including without

10 limitation the rules on:

11  (1) Advertising;

12  (2) Solicitation of new clients; and

13  (3) Confidentiality.

14  (c) A violation of this section is a deceptive and unfair trade

15 practice and constitutes a Class A misdemeanor as a violation of the

16 Deceptive Trade Practices Act, � 4-88-101 et seq.

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