Adds to existing law to establish provisions regarding consumer protection of veterans benefits.

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 AN ACT1 RELATING TO CONSUMER PROTECTION OF VETERANS BENEFITS; AMENDING CHAPTER 6,2 TITLE 48, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 48-603H, IDAHO3 CODE, TO ESTABLISH PROVISIONS REGARDING VETERANS BENEFITS CONSUMER4 PROTECTIONS; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE5 DATE.6

Be It Enacted by the Legislature of the State of Idaho:7

SECTION 1. That Chapter 6, Title 48, Idaho Code, be, and the same is8 hereby amended by the addition thereto of a NEW SECTION, to be known and des-9 ignated as Section 48-603H, Idaho Code, and to read as follows:10 48-603H. VETERANS BENEFITS CONSUMER PROTECTIONS. (1) As used in this11 section:12 (a) "Compensation" means a payment of any money, thing of value, or fi-13 nancial benefit.14 (b) "Veterans benefits matter" means the preparation, presentation, or15 prosecution of, or advertising or consulting for, any claim affecting16 any person who has filed or expressed an intent to file a claim for any17 benefit, program, service, commodity, function, or status to which en-18 titlement is determined under the laws and regulations administered by19 the United States department of veterans affairs, the United States de-20 partment of war, or the Idaho division of veterans services pertaining21 to veterans, veterans' dependents or survivors, or any other individ-22 ual eligible for such benefit, program, service, commodity, function,23 or status.24 (2)(a) Except as permitted under federal law, no individual shall re-25 ceive compensation for a veterans benefits matter before the United26 States department of veterans affairs, the United States department of27 war, or the Idaho division of veterans services.28 (b) No person shall receive compensation for referring any individ-29 ual to another person for a veterans benefits matter before the United30 States department of veterans affairs, the United States department of31 war, or the Idaho division of veterans services.32 (3) Persons not accredited by the United States department of veterans33 affairs and not acting as agents or attorneys but seeking to receive compen-34 sation for any veterans benefits matter shall enter into a written fee agree-35 ment signed by both parties. Such agreement shall provide that compensation36 is contingent on an increase in benefits awarded, and if successful, compen-37 sation shall not exceed five (5) times the amount of the monthly increase in38 benefits awarded based on the claim. No initial or nonrefundable fee may be39 charged by a person handling a veterans benefits matter.40 (4) Any person receiving compensation for a veterans benefit matter41 pursuant to subsection (3) of this section shall provide the following writ-42

2 ten disclosure clearly and conspicuously before the consumer signs the fee1 agreement:2 This business is not sponsored by or affiliated with the United3 States Department of Veterans Affairs, the Idaho Division of4 Veterans Services, or any federally chartered veterans service5 organization. Other organizations, including but not limited to6 the Idaho Division of Veterans Services, local veterans service7 organizations, and federally chartered veterans service organiza-8 tions, may be able to provide you with this service free of charge.9 Products or services offered by this business are not necessarily10 endorsed by any of these organizations. You may qualify for other11 veterans benefits beyond the benefits for which you are receiving12 services here.13 (5) Any person receiving compensation for a veterans benefits matter14 under a fee agreement pursuant to subsection (3) of this section:15 (a) May not utilize international call centers or data centers for pro-16 cessing veterans' personal information;17 (b) May not use a veteran's personal log-in, username, or password in-18 formation to access a veteran's medical, financial, or government bene-19 fits information;20 (c) Shall ensure that any individual who has access to a veteran's medi-21 cal or financial information undergoes a background check prior to hav-22 ing access to such information. The background check must be conducted23 by a reputable source and include identity verification and a criminal24 records check; and25 (d) May not receive any compensation for any services rendered in con-26 nection with any claim filed within the one (1) year presumptive period27 of active-duty release, unless the veteran acknowledges in writing that28 the veteran is within this period and choosing to deny available free29 services.30 (6) Nothing in this section shall be construed as applying to, limit-31 ing, or expanding the requirements imposed on agents, attorneys, or other32 representatives accredited and regulated by the United States department of33 veterans affairs.34

SECTION 2. An emergency existing therefor, which emergency is hereby35 declared to exist, this act shall be in full force and effect on and after36 July 1, 2026.37