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.
                                                                   LBD10329-01-9

        S. 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.
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