SB 206 Alabama Senate · 2025 Regular Session

Veterans benefits; parameters imposed on businesses advising clients on making claims for benefits; violations a deceptive trade practice

SB 206 establishes regulations for businesses and individuals who advise or assist veterans in filing claims for benefits, especially when they receive compensation for their services. It mandates that anyone acting as an agent or attorney for such claims must first be accredited by the U.S. Department of Veterans Affairs. For compensated services, the bill requires written agreements and specific oral and written disclosures to clients, informing them about the business's non-affiliation with government agencies and the availability of free services. It also prohibits guaranteeing specific benefits, charging excessive or unreasonable fees, or receiving compensation for referrals, classifying violations as a deceptive trade practice.
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
Apr 2025
Senate Passage
May 2025
House Passage
May 2025
Signed into Law
May 2025
Introduced Feb 27, 2025 Signed May 22, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed Enrolled · 7 edits · May 22, 2025
MODERATE
The bill was finalized as Enrolled, incorporating specific policy changes to regulate veterans benefits advisors. Key updates include clarifying that only accredited agents or attorneys can receive compensation for assistance, removing outdated federal regulation references for fee determination, and adding a requirement for clients to verbally acknowledge understanding of the oral disclosure. These changes tighten consumer protections and align the bill with current federal accreditation standards.
Scope change
The scope of who can legally charge for assistance was narrowed to only those accredited by the federal government or Alabama Department of Veterans Affairs, and the definition of covered benefits was expanded to include survivors and other eligible individuals.
ELIGIBILITY

Added a requirement that only agents or attorneys accredited by the U.S. Department of Veterans Affairs may receive compensation for assisting with veterans benefits claims.

DEFINITION

Expanded the definition of 'Veterans Benefits Matter' to explicitly include benefits for dependents, survivors, and other eligible individuals.

REQUIREMENT

Removed the requirement to adhere to specific federal regulations (38 C.F.R. § 14.636) for written fee agreements and fee reasonableness determinations.

Added a new requirement that the individual seeking services must verbally acknowledge understanding of the oral disclosure and sign the document containing the written disclosure.

Updated the required disclosure text to include a statement that the client may qualify for other benefits beyond those being discussed.

Removed the requirement that fee reasonableness be determined by specific federal factors, leaving the determination of excessive fees to general standards.

TECHNICAL

Removed references to specific federal regulations (38 C.F.R. § 14.636) that were previously used as the standard for fee agreements and fee reasonableness.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
23
Key actions
9
Committee
4
Amendments
3
May 14, 2025
Upper · Passed
Carnley Concur In and Adopt - Adopted Roll Call 1051
upper
May 7, 2025
Lower · Passed
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1205
lower
May 7, 2025
Lower · Passed
Motion to Adopt - Adopted Roll Call 1204
lower
May 7, 2025
Introduced
Military and Veterans' Affairs Engrossed Substitute Offered (Military and Veterans' Affairs)
lower
Apr 16, 2025
Lower · Passed
Reported Out of Committee Second House (Military and Veterans' Affairs)
lower
Apr 16, 2025
Introduced
Military and Veterans' Affairs 1st Amendment (Military and Veterans' Affairs)
lower
Apr 10, 2025
Lower · Passed
Pending Committee Action in Second House (Military and Veterans' Affairs)
lower
Apr 10, 2025
Upper · Passed
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 662
upper
Apr 10, 2025
Upper · Passed
Carnley motion to Adopt - Adopted Roll Call 661
upper
Apr 10, 2025
Introduced
Carnley 1st Amendment Offered
upper
Mar 5, 2025
Upper · Passed
Reported Out of Committee House of Origin
upper
Feb 27, 2025
Upper · Passed
Pending Committee Action in House of Origin (Veterans, Military Affairs and Public Safety)
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Josh Carnley
Josh Carnley
RRepublican
AL
31