New York State Assembly

 
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A06292 Summary:

A06292 Actions:

A06292 Committee Votes:

Committee:VETERANS' AFFAIRS   Chair:Barrett      
DATE:03/12/2019AYE/NAY:19/0  Action: Favorable refer to committee Codes        
Barrett
Aye
Morinello
Aye
Nolan
Aye
Hawley
Aye
Cusick
Aye
McDonough
Aye
Miller
Aye
Ashby
Aye
Santabarbara
Aye
Manktelow
Aye
Blake
Aye
Hunter
Aye
Mosley
Aye
D'Urso
Aye
Pheffer Amato
Aye
Wallace
Aye
Stern
Aye
Jones
Aye
Buttenschon
Aye

Committee:CODES   Chair:Lentol      
DATE:04/30/2019AYE/NAY:20/0  Action: Favorable         
Lentol
Aye
Ra
Aye
Schimminger
Aye
Giglio
Aye
Pretlow
Aye
Montesano
Aye
Cook
Aye
Morinello
Aye
Cymbrowitz
Aye
Palumbo
Aye
O'Donnell
Excused
Garbarino
Aye
Lavine
Aye
Perry
Aye
Zebrowski
Excused
Abinanti
Aye
Weprin
Aye
Mosley
Aye
Hevesi
Aye
Fahy
Aye
Seawright
Aye
Rosenthal
Aye

A06292 Floor Votes:

A06292 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A6292
 
SPONSOR: Mosley

 
TITLE OF BILL:  An act to amend the general business law, in relation
to enacting the pension poaching prevention act
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
This bill would prohibit any entity from receiving compensation for
helping veterans and their dependents prepare a claim, except as permit-
ted under United States Department of Veterans Affairs (USDVA) stand-
ards.
 
 
SUMMARY OF PROVISIONS:
 
Section 1: This Act shall be known and cited as the "pension poaching
prevention act."
 
Section 2: Legislative findings and intent.

Section 3: A new section 349-f is added to the General Business Law to
establish criteria to protect veteran benefit maters, which includes any
benefit, program, service, commodity, function, or status of veterans
and their family members.
 
Section 4: Effective date.
 
 
JUSTIFICATION:
 
"Pension poaching" represents a growing scam targeted at separating
elderly and disabled veterans from their assets. The scheme involves
unscrupulous financial planners or insurance agents claiming to be
veterans' advocates. They offer help in submitting a claim for a specif-
ic federal U.S. Department of Veterans Affairs (USDVA) that the veteran
or family member may not even be eligible to obtain.
 
The Federal Trade Commission and USDVA have each issued warnings about
the scheme. Poachers convince veterans to reposition their assets to
qualify for the benefit, such as the "Aid and Attendance Benefit", which
has specific and strict qualifications. The poachers then often sell
veterans unneeded financial products or services to earn a commission or
fee. Problems arise because these brokers typically fail to deliver on
their promise, do not provide full information about other veterans'
benefits, and do not reveal the potentially adverse consequences of the
financial transactions such as loss of Medicaid eligibility.
 
This bill would prohibit any entity from receiving compensation for
helping veterans and their dependents prepare a claim, except as permit-
ted under the USDVA standards. It would also prohibit charging unreason-
able fees for services and it would ban pledging that an individual will
receive a specific amount of veterans' benefits money. In addition, this
bill would require any entity offering these services to veterans and
their dependents to inform customers that the New York State Division of
Veterans' Affairs and their County or City Veterans Service Agencies can
provide them with free service regarding Veterans' benefits. These
provisions would add New York State to a list of states that are provid-
ing these protections to veterans and their family members.
 
 
PRIOR LEGISLATIVE HISTORY:
Similar to A.7799 (Mosley) 2017-2018 Passed the Assembly
 
 
FISCAL IMPLICATIONS:
 
None to the State.
 
 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

A06292 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6292
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 4, 2019
                                       ___________
 
        Introduced by M. of A. MOSLEY -- read once and referred to the Committee
          on Veterans' Affairs
 
        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.
                                                                   LBD10329-01-9
        A. 6292                             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-
        A. 6292                             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.

A06292 LFIN:

 
NO LFIN

A06292 Chamber Video/Transcript: