AN ACT to regulate compensation for services related to veterans' benefits matters.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 14 of Chapter 143B of the General Statutes is amended by adding a new section to read:

§ 143B‑1278.  Compensation for services related to veterans' benefits matters.

(a)        Definitions. – Unless the context requires otherwise, the following definitions apply in this section:

(1)        Compensation. – The payment of money, anything of value, or a financial benefit.

(2)        Veterans' benefits matter. – The preparation, presentation, or prosecution of a claim affecting an individual who has filed or expressed an intent to file a claim for a benefit, program, service, commodity, pension, function, or status, the entitlement to which is determined under the laws and regulations administered by the United States Department of Veterans Affairs or the Department of Military and Veterans Affairs pertaining to veterans, their dependents, their survivors, and any other individual eligible for such benefits.

(b)        Prohibitions. – A person shall not do any of the following:

(1)        Receive compensation for preparation, presentation, or prosecution of, or advising, consulting, or assisting an individual with an initial disability claim related to a veterans' benefits matter, except as permitted by this section.

(2)        Receive compensation for referring an individual to another person to prepare, present, prosecute, or advise, consult, or assist the individual with a veterans' benefits matter.

(3)        Directly or by implication guarantee or advertise 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.

(4)        A person seeking to receive compensation for advising, assisting, or consulting any individual with any veterans' benefits matter or engaging in the preparation of an initial claim for a fee shall not:

a.         Aggressively or directly solicit business regarding any veterans' benefit matter.

b.         Gain direct access to any personal medical, financial, or government benefits log in, username, or password information.

(5)        A person seeking to receive compensation for advising, assisting, or consulting any individual with any veterans' benefits matter shall not utilize a medical professional for a secondary medical exam with whom they have an employment relationship.

(6)        Enter into any agreement related to a veterans' benefits matter that does not comply with subsection (c) of this section.

(c)        Memorialization of Terms. – Before rendering any services, a person seeking to receive compensation for preparation, presentation, or prosecution of, or advising, consulting, or assisting an individual with, a veterans' benefits matter shall memorialize all terms of the agreement in a written agreement that complies with all of the following criteria:

(1)        The written agreement is signed by both parties and contains all terms regarding the individual's payment of fees for services rendered, including both of the following:

a.         Fees for services are contingent upon a successful outcome and shall not exceed five times the one month increase in benefits.

b.         No initial fee shall be charged.

(2)        The written agreement must clearly provide at the outset of the business relationship the following disclosure: This business is not sponsored by, or affiliated with, the United States Department of Veterans Affairs or the Department of Military and Veterans Affairs, or any other federally chartered veterans' service organization. Other organizations, including, but not limited to, the Department of Military and Veterans Affairs, a local veterans' service organization, 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. This written disclosure shall appear in at least 12‑point font and shall appear in a readily noticeable and identifiable place in the person's agreement with the individual seeking services. This disclosure shall also be provided orally to the individual and the individual shall verbally acknowledge understanding of the oral disclosure and sign the document in which the written disclosure appears to represent understanding of these provisions. The person offering services shall 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.

(d)       Penalty. – A violation of this section is an unfair trade practice under G.S. 75‑1.1.

(e)        Exclusions. – Nothing in this section shall apply to attorneys who are licensed to practice in the State of North Carolina.

SECTION 2.  This act becomes effective October 1, 2025.