SB 40-VETERANS' BENEFITS SERVICES; DISCLOSURE  2:21:04 PM CHAIR COSTELLO announced the consideration of SENATE BILL NO. 40 "An Act relating to veterans' benefits services and veterans' benefits appeal services." She said this is the first hearing in this committee and the intention is to hear the introduction, take invited and public testimony, and look to the will of the committee. 2:21:39 PM SENATOR REVAK, speaking as sponsor of SB 40, stated that this legislation addresses the issue that some for-profit veteran service providers are preying on veterans who find they need legal, medical, and other services and are unaware that these services are available at no cost to the veteran through a Veteran Service Organization (VSO). Some for-profit providers are taking a good portion of a veteran's benefits in exchange for filling out an application to receive needed services. SB 40 essentially says that these for-profit businesses must disclose to the veteran that their services may be obtained free of charge from a VSO. 2:23:34 PM SETH DUGGAN, Staff, Senator Josh Revak, Alaska State Legislature, Juneau, Alaska, read the following sponsor statement into the record: When a veteran needs legal representation, medical supplies, or other services, many are not aware that a Veteran Service Organization (VSO) provides many services free of charge. Instead, they pay hefty fees to other providers and take on debt without being fully informed about their free options. 2:23:57 PM SB 40 seeks to stop veterans from being taken advantage of by requiring these individuals and businesses who offer compensated veterans services to provide veterans a written disclosure form listing the free alternatives prior to taking them on as a client. Additionally, any advertisement for veteran benefit services will be required to include a disclosure that indicates that a Veteran Service Organization offers these services free of charge. Should the veteran not receive the disclosure, the individual or business responsible can be fined $1,000 dollars for each violation. Currently, there are 18 Veteran Service Officers in Alaska who work under organizations such as the Veterans of Foreign Wars (VFW), American Legion, Disabled American Veterans (DAV), the Vietnam Veterans of America (VVA), and the Director of Veterans Affairs. These organizations are responsible for aiding and advising veterans free of charge. The passage of SB 40 ensures that veterans and their families who are looking for assistance with veterans benefit services are fully informed about the free services offered by Veteran Service Organizations before they pay for assistance. After making so many sacrifices to serve our country, veterans are being taken advantage ofSB 40 seeks to change this reality and help connect veterans to the affordable services they deserve. 2:25:37 PM CHAIR COSTELLO asked if it was intentional that the legislation has no effective date. MR. DUGGAN deferred the question to Director Bowen. SENATOR STEVENS asked for examples of how veterans are taken advantage of and if the for-profit providers should be prohibited altogether. SENATOR REVAK cited the example of a law firm helping a veteran with a claim. The firm enters into a contract with the veteran to file the claim in exchange for a percentage of the benefit. Sometimes the percentage is high and the veteran does not know that a VSO offers the same service free of charge. He acknowledged that some veterans may choose a for-profit business, but the bill ensures that they know about the no-cost alternative. SENATOR STEVENS asked if the for-profit providers fill a valuable niche. SENATOR REVAK replied we wouldn't want to do away with the services provided free of charge to veterans, many of which are nonprofits working in conjunction with the state through the Division of Veterans Affairs. He described it as a public- private partnership. 2:27:56 PM SENATOR HOLLAND added that many good faith providers are probably veterans. This bill is to ensure that veterans understand that there is an alternative to paying for representation. He acknowledged that it sometimes would be worth paying for the service if an expert in the field is needed. SENATOR REVAK related that he received wonderful service from disabled veteran organizations when he was reintegrating to become a veteran. However, he has learned about veterans who were offered services for up to 30 percent of the benefits they would receive. CHAIR COSTELLO invited Verdie Bowen to provide information and state the administration's position on the bill. 2:29:32 PM VERDIE BOWEN, Administrative Director of Veterans Affairs, Office of Veterans Affairs, Department of Military & Veterans Affairs (DMVA), Anchorage, Alaska, said he had not asked the governor for his position on SB 40 but he thought he would support it. He related that a number of veterans have forgotten that they signed paperwork with a law firm in another state and are very surprised when the benefit they receive is up to 40 percent less than what they expected. The law says that entities serving at cost are paid before the veteran. He said his office sees one or two of these veterans a month and the shame is that they did not know that they could have received the same service free of charge. Responding to Senator Stevens' question, Mr. Bowen said private sector attorneys serve a purpose when a certain expertise is needed and some serve pro bono for veterans. SENATOR STEVENS asked if he had any idea of the numbers of veterans that have been affected. 2:32:21 PM MR. BOWEN replied the average is probably 50 veterans a year. He explained that prior to the 2017 Appeals Modernization Act it was not legal for for-profit law firms to charge veterans for these services. He said his office is seeing more veterans caught in this legal loophole every month. 2:33:18 PM CHAIR COSTELLO opened public testimony on SB 40; after determining no one wished to testify, she closed public testimony on SB 40. She noted the letters of support in the bill packets. 2:33:38 PM At ease 2:34:02 PM CHAIR COSTELLO reconvened the meeting and solicited a motion. 2:34:06 PM SENATOR HOLLAND moved to report SB 40, work order 32-LS0231\A, from committee with individual recommendations and attached fiscal note(s). CHAIR COSTELLO found no objection and SB 40 was reported from the Senate Labor and Commerce Standing Committee.