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.

 

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.

 

    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 shall receive excessive or unreasonable fees as compensation for preparing, advising, presenting, or prosecuting a claim for any veterans' benefits matter. The factors articulated within Section 14.636 of Title 38 of the Code of Federal Regulations, and any successor regulations, shall govern determinations of whether a fee is excessive or unreasonable.

    (E) 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 25-11-830. A person seeking to receive compensation for preparing, advising, presenting, or prosecuting a claim for any individual with a veterans' benefits matter shall, before rendering any services, memorialize all terms regarding the individual's payment of fees for services rendered in a written agreement, signed by both parties, that adheres to all criteria specified in Section 14.636 of Title 38 of the Code of Federal Regulations and any successor regulations.

 

    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 attorneys' 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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