Amended

May 7, 2026

 

S. 695

 

Introduced by Senators Young, Graham, Devine, Walker and Sutton

 

S. Printed 5/7/26--H.                                                                               [SEC 5/8/2026 1:36 PM]

Read the first time February 11, 2026

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS SO AS TO ENACT THE "SOUTH CAROLINA SAFEGUARDING AMERICAN VETERANS' BENEFITS ACT"; AND BY ADDING ARTICLE 8 TO CHAPTER 11, TITLE 25, SO AS TO PROVIDE DEFINITIONS, SET GUIDELINES AND LIMITS FOR COMPENSATION, MEMORIALIZE TERMS, AND STATE PENALTIES FOR NONCOMPLIANCE.

    Amend Title To Conform

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  This act may be cited as the "South Carolina Safeguarding American Veterans' Benefits Act".

 

SECTION 2.  Chapter 11, Title 25 of the S.C. Code is amended by adding:

 

Article 8

 

    Section 25-11-810. For the purposes of this article:

    (1) "Claim" means any application for any benefits administered by the United States Department of Veterans Affairs, the United States Department of Defense, or the United States Department of Homeland Security, and includes any associated appeals regarding such benefits.

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

    (3) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government, governmental subdivision, agency, instrumentality, or any other legal or commercial entity.

    (4) "Veterans' benefits matter" means the preparation, presentation, or prosecution of a claim affecting an individual who has filed or expressed an intent to file a claim for benefits, to include any program, service, commodity, function, or status, administered by the United States Department of Veterans Affairs, the United States Department of Defense, or the United States Department of Homeland Security pertaining to veterans, their dependents, their survivors, and any other individual eligible for such benefits.

    (5) "Claimant" means the veteran or the surviving spouse, dependent children, dependent parents, fiduciary, or legal representative of the veteran who is applying for, or submitting a claim for, any benefit under this Article.

 

    Section 25-11-820. (A) No person shall receive compensation for preparing, advising, presenting, or prosecuting a claim for any individual regarding any veterans' benefits matter, except as permitted under federal law.

    (B) No person shall receive compensation for referring any individual to another person for preparing, advising, presenting, or prosecuting a claim for the individual with any veterans' benefits matter. This subsection does not apply to licensed attorneys representing an individual regarding veterans' benefits under a joint contract of representation that complies with the South Carolina Rules of Professional Conduct.

    (C) No person shall guarantee, either directly or by implication, that any individual is certain to receive specific veterans' benefits, or that any individual is certain to receive a specific level, percentage, or amount of veterans' benefits.

    (D) No person may charge an upfront fee or non-refundable fee. A person seeking to receive compensation for advising, assisting, or consulting with any veterans' benefits matter, before rendering any services, shall memorialize the specific terms that specify that the amount to be paid must be determined in a written agreement signed by both parties. Compensation must be capped at a one-time fee that is contingent upon an increase in benefits awarded and shall not exceed five times the amount of the monthly increase in benefits awarded based on the claim or twelve thousand five hundred dollars, whichever is the lesser amount. Any installment payment plan agreed upon by the parties must be interest free, not to exceed twelve months.

    (E) No person may receive any compensation for any services rendered in connection with any claim filed within the one year presumptive period of active-duty release, unless the veteran acknowledges by signing a waiver that he is within this period and choosing to deny free services available to him.

    (F) Any person advising, assisting, or consulting on veterans' benefits matters for compensation must provide the following disclosure at the outset of the business relationship:

"This business is not sponsored by, or affiliated with, the United States Department of Veterans Affairs or the South Carolina Department of Veterans' Affairs, or any other federally chartered veterans' service organization. Other organizations including, but not limited to, the South Carolina Department of Veterans' Affairs, a local veterans' service organization, a county veterans affairs officer, 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 beyond the benefits for which you are receiving services here."

    (G) The written disclosure must appear in at least twelve point font in an easily identifiable place in the person's agreement with the individual seeking services. The individual must sign the document in which the written disclosure appears to represent understanding of these provisions. The person offering services must retain a copy of the written disclosure while providing veterans' benefits services for compensation to the individual and for at least one year after the date on which the service relations terminate.

    (H) Businesses advising, assisting, or consulting on veterans' benefits matters for a fee must abide by the following:

       (1) must not use a veteran's personal log-in, username, or password information to access that veteran's medical, financial, or government benefits information;

       (2) must not employ a medical provider to conduct a medical examination;

       (3) must ensure that any individual who has access to veterans' medical or financial information undergoes a background check prior to having access to that information. The background check must be conducted by a reputable source and include identity verification and a criminal records check.

    (I) This article does not apply to:

       (1) Any licensed attorney representing an individual regarding the payment and resolution of any liens for medical care provided to the individual by the United States Department of Veterans Affairs.

       (2) An accredited representative of a recognized organization or an accredited agent or attorney under Section 14.629 of Title 38 of the Code of Federal Regulations, and any successor regulations.

       (3) An employee of a South Carolina Veterans' Home who, when assisting the veteran with veterans' benefits, is acting within that employee's capacity as an employee of a South Carolina Veterans' Home.

 

    Section 25-11-840. (A) Any person violating the provisions of this article shall be deemed guilty of a misdemeanor and upon conviction, shall be fined not more than one thousand dollars, be imprisoned for not more than thirty days, or both. Each veterans' benefits matter handled in violation of the terms of this article shall be declared a separate offense.

    (B) Any individual who suffers any ascertainable loss of money or property, real or personal, as a result of a person violating the provisions of this article may bring an action to recover under the South Carolina Unfair Trade Practices Act.

    (C) Whenever the Attorney General has reasonable cause to believe that any person is violating the provisions of this article, and that proceedings would be in the public interest, he may bring an action in the name of the State against such person to restrain such activity by temporary restraining order, temporary injunction, or permanent injunction. The action may be brought in the court of common pleas in the county in which such person resides, has his principal place of business, or conducts or transacts business. Each day that a violation continues is a separate violation. The courts are authorized to issue orders and injunctions to restrain and prevent violations of this article, and such orders and injunctions shall be issued without bond. Whenever any order or permanent injunction is issued by such court in connection with any action that has become final, reasonable costs and attorney's fees shall be awarded to the State. The court may also award civil penalties, which shall be deposited into the state's Veterans' Trust Fund.

 

SECTION 3.  This act takes effect upon approval by the Governor.

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