Bill Text: NY S04807 | 2019-2020 | General Assembly | Introduced
Bill Title: Enacts the pension poaching prevention act to prevent financial planners, insurance agents, and other professionals from luring veterans and their family members to pay substantial funds for veterans' benefits services that the offering entity is unqualified to provide and that can detrimentally impact the future financial situations of the veteran and his or her dependents.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2019-08-23 - signed chap.183 [S04807 Detail]
Download: New_York-2019-S04807-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4807 2019-2020 Regular Sessions IN SENATE March 26, 2019 ___________ Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection AN ACT to amend the general business law, in relation to enacting the pension poaching prevention act The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "pension 2 poaching prevention act". 3 § 2. Legislative findings and intent. Nationally, veterans and their 4 family members are often subject to a practice commonly called pension 5 poaching. This troubling practice, as described in recent reports from 6 the Federal Trade Commission, the Federal Government Accountability 7 Office, the United States Department of Veterans Affairs, and several 8 other entities, generally target elderly or disabled veterans and their 9 family members. Pension poaching involves dishonest financial planners, 10 insurance agents, and other professionals luring veterans and their 11 family members to pay substantial funds for veterans' benefits services 12 that the offering entity is unqualified to provide and that can detri- 13 mentally impact the future financial situations of the veteran and his 14 or her dependents. 15 Entities engaging in pension poaching tend to use high-pressure sales 16 tactics directed toward potential customers, falsely guaranteeing bene- 17 fits for veterans and their families even when the advertising entity 18 lacks the federal accreditation required by law to file such claims and 19 appeals for federal veterans' benefits. Often, they persuade veterans 20 and their family members to abruptly move most or all of their assets to 21 potentially qualify for certain federal veterans benefits, frequently 22 causing veterans and their family members to unwittingly lose control 23 over their assets and adversely affecting the ability of veterans and 24 their families to qualify for Medicaid and other important benefits in 25 the future. These entities frequently charge extremely high fees for EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10329-01-9S. 4807 2 1 these services, even in matters where federal law expressly prohibits 2 such fees. 3 Through this legislation, the legislature intends to restrain this 4 harmful and deceptive practice within New York State, providing neces- 5 sary protections to the men and women of this state who courageously 6 served in our nation's armed forces. 7 § 3. The general business law is amended by adding a new section 349-f 8 to read as follows: 9 § 349-f. Pension poaching prevention. 1. For purposes of this section: 10 (a) The term "veterans' benefits matter" means the preparation, pres- 11 entation, or prosecution of any claim affecting any person who has filed 12 or expressed an intent to file a claim for any benefit, program, 13 service, commodity, function, or status, entitlement which is determined 14 under the laws and regulations administered by the United States depart- 15 ment of veterans affairs or the New York state division of veterans' 16 affairs pertaining to veterans, their dependents, their survivors, and 17 any other party eligible for such benefits. 18 (b) The term "compensation" means money, property, or anything else of 19 value. 20 (c) The term "entity" includes, but is not limited to, any natural 21 person, corporation, trust, partnership, alliance, or unincorporated 22 association. 23 2. (a) No entity shall receive compensation for advising or assisting 24 any party with any veterans' benefits matter, except as permitted under 25 title 38 of the United States code and the corresponding provisions 26 within title 38 of the United States code of federal regulations. 27 (b) No entity shall receive compensation for referring any party to 28 another individual to advise or assist this party with any veterans' 29 benefits matter. 30 (c) Any entity seeking to receive compensation for advising or assist- 31 ing any party with any veterans' benefits matter shall, before rendering 32 any services, memorialize all terms regarding the party's payment of 33 fees for services rendered in a written agreement, signed by both 34 parties, that adheres to all criteria specified within title 38, section 35 14.636, of the United States code of federal regulations. 36 (d) No entity shall receive any fees for any services rendered before 37 the date on which a notice of disagreement is filed with respect to the 38 party's case. 39 (e) No entity shall guarantee, either directly or by implication, that 40 any party is certain to receive specific veterans' benefits or that any 41 party is certain to receive a specific level, percentage, or amount of 42 veterans' benefits. 43 (f) No entity shall receive excessive or unreasonable fees as compen- 44 sation for advising or assisting any party with any veterans' benefits 45 matter. The factors articulated within title 38, section 14.636 of the 46 code of federal regulations shall govern determinations of whether a fee 47 is excessive or unreasonable. 48 3. (a) No entity shall advise or assist for compensation any party 49 with any veterans' benefits matter without clearly providing, at the 50 outset of this business relationship, the following disclosure, both 51 orally and in writing: "this business is not sponsored by, or affiliated 52 with, the United States department of veterans affairs, the New York 53 state division of veterans' affairs, or any other congressionally char- 54 tered veterans service organization. Other organizations, including but 55 not limited to the New York state division of veterans' affairs, your 56 local county veterans service agency, and other congressionally char-S. 4807 3 1 tered veterans service organizations, may be able to provide you with 2 this service free of charge. Products or services offered by this busi- 3 ness are not necessarily endorsed by any of these organizations. You 4 may qualify for other veterans' benefits beyond the benefits for which 5 you are receiving services here." The written disclosure must appear in 6 at least twelve-point font and must appear in a readily noticeable and 7 identifiable place in the entity's agreement with the party seeking 8 services. The party must verbally acknowledge understanding of the oral 9 disclosure and must provide his or her signature to represent under- 10 standing of these provisions on the document in which the written 11 disclosure appears. The entity offering services must retain a copy of 12 the written disclosure while providing veterans' benefits services for 13 compensation to the party and for at least one year after the date on 14 which this service relationship terminates. 15 (b) No entity shall advertise for-compensation services in veterans 16 benefits matters without including the following disclosure: "this busi- 17 ness is not sponsored by, or affiliated with, the United States depart- 18 ment of veterans affairs, the New York state division of veterans' 19 affairs, or any other congressionally chartered veterans service organ- 20 ization. Other organizations, including but not limited to the New York 21 state division of veterans' affairs, your local county veterans service 22 agency, and other congressionally chartered veterans service organiza- 23 tions, may be able to provide you with these services free of charge. 24 Products or services offered by this business are not necessarily 25 endorsed by any of these organizations. You may qualify for other veter- 26 ans' benefits beyond the services that this business offers." If the 27 advertisement is printed, including but not limited to advertisements 28 visible to internet users, the disclosure must appear in a readily visi- 29 ble place on the advertisement. If the advertisement is verbal, the 30 spoken statement of the disclosure must be clear and intelligible. 31 4. (a) Any violation of this section shall constitute a deceptive act 32 in the conduct of business, trade, or commerce, and shall be subject to 33 the provisions of section three hundred forty nine of this article, 34 including any right of action and corresponding penalties described 35 within such section. 36 (b) If an entity's violation of this section concerns a party who is 37 sixty-five years of age or older, said entity may be liable for supple- 38 mental civil penalties as established within, and subject of the terms 39 of, section three hundred forty-nine-c of this article. 40 5. If any clause, sentence, paragraph or part of this section or the 41 application thereof shall be adjudged by any court of competent juris- 42 diction to be invalid, such judgment shall not affect, impair, or inval- 43 idate the remainder thereof, but shall be confined in its operation to 44 the clause, sentence, paragraph or part thereof directly involved in the 45 controversy in which such judgment shall have been rendered. 46 § 4. This act shall take effect on the one hundred twentieth day after 47 it shall have become a law.
