• Military & Veterans

This bill regulates individuals and businesses that provide paid assistance with veterans' benefits claims and strengthens enforcement through civil penalties and consumer protection laws.

SECTION 1 – Civil Penalties Amendments (C.R.S. 6-1-112):

• Updates subsections to include reference to new Section 6-1-737.

• Civil penalties:

  • Up to $20,000 per violation.

  • Up to $10,000 for violating a court order under this law.

  • Up to $50,000 per violation against an elderly person.

• New Subsection (4):

  • Civil penalties for violations of Section 6-1-105(1)(iiii) must be deposited in the Colorado State Veterans Trust Fund.

SECTION 2 – New Regulations for Veterans' Benefit Services (C.R.S. 6-1-737):

Definitions:

• Veteran includes those with non-dishonorable discharge and eligible family members.

• Veterans' benefits matter refers to assistance with VA or state veterans’ benefits claims.

• Compensation means any money or benefit received for services.

Key Provisions:

• Compensation Limits:

  • Only allowed if the service secures increased benefits.

  • Maximum fee is the lesser of $9,000 or 20% of past-due benefits awarded.

  • No upfront or additional fees allowed.

• Timing Restriction:

  • No compensation permitted for claims within 1 year of discharge, when VA presumptions apply.

• Prohibited Guarantees:

  • No guarantees of a successful or specific outcome in a claim.

• Written Contract Requirement:

  • Clear, signed agreement must outline:

    • Services provided.

    • Fee structure.

    • Required disclosures.

• Mandatory Disclosure:

  • Must clearly state in contracts and all advertising that:

    • The business is not affiliated with the VA or Colorado Dept. of Military and Veterans Affairs.

    • Free services may be available through official or accredited sources.

    • The business cannot expedite claims processing.

• Advertising Standards:

  • Disclosure must be conspicuous and clear across all media.

• Prohibited Representations:

  • Cannot falsely claim VA accreditation or represent a service organization.

• Data Protection Requirements:

  • Cannot use a veteran’s login credentials.

  • Cannot disclose personal data unless court-ordered.

  • Must comply with state and federal privacy laws, including HIPAA.

• Veteran Death Clause:

  • If a veteran dies before claim processing, no compensation may be collected.

  • Contracts terminate immediately upon the veteran’s death.

• Appeals Limitation:

  • Non-accredited persons cannot assist with VA appeals.

• Enforcement:

  • Violations are classified as deceptive trade practices.

• Exemption:

  • Does not apply to VA-accredited attorneys, agents, or representatives.

SECTION 3 – Deceptive Trade Practices (C.R.S. 6-1-105):

• Adds a new subsection (1)(iiii) defining violation of Section 6-1-737 as a deceptive trade practice.

SECTION 4 – Effective Date:

• Takes effect 90 days after legislative adjournment unless petitioned to the November 2026 ballot.

• If approved by voters, becomes effective upon governor’s declaration.

The bill makes it a deceptive trade practice under the Colorado
Consumer Protection Act for a person who consults with, advises, or
assists a veteran, in connection with a claim for veterans' benefits
(veterans' benefits matter), to:
  • Receive compensation in excess of the lesser of $9,000 or
20% of the amount of any past-due benefits the veteran
actually receives after the person procures an increase in
the veteran's monthly benefits;
  • Receive compensation in connection with a claim filed
within the one-year period following a veteran's release
from active duty;
  • Guarantee a successful outcome in a veterans' benefits
matter;
  • Fail to memorialize the payment terms and certain
disclosures in a written, signed contract;
  • Omit certain disclosures from advertising or make false
representations about accreditation;
  • Fail to take various security measures related to veterans'
personal information; or
  • Provide services in connection with an appeal or review of
the veterans administration's initial decision in a veterans'
benefits matter.
The bill requires the attorney general or district attorney to transmit any
civil penalty collected for a violation of the veterans' benefits matter
provisions to the state treasurer for deposit in the Colorado state veterans
trust fund.

• April 10, 2025: Senate State, Veterans, & Military Affairs Committee Report

• Past bill versions
• Past fiscal notes
• Committee activity and documents
• Bill History