Illinois General Assembly - Full Text of HB3086

LRB104 06119 KTG 16152 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3086

Introduced 2/6/2025, by Rep. Lisa Davis

SYNOPSIS AS INTRODUCED:

See Index

Amends the Veteran Service Organizations State Charter Act. Changes the name of the Act to the Veteran Service Organizations Equal Act. Provides that a veteran service organization shall be considered to have veteran service organization status (rather than shall be considered state chartered) when the organization meets all of the requirements listed in the Act and the organization's application for veteran service organization status (rather than state charter status) has been approved by the Attorney General. Makes corresponding changes throughout the Act. Provides that the Attorney General shall grant veteran service organization status (rather than state charter status) to any organization that has demonstrated that all requirements for obtaining veteran service organization status have been met. Requires a veteran service organization to have annual expenditures that demonstrate that 20% (rather than a majority) of the organization's expenses reflect support for veterans in order to qualify for veteran service organization status. Requires an application for veteran service organization status to include a statement from the organization's Commander, President, or chief executive officer (rather than all officers of the organization) attesting that all requirements for a veteran service organization status have been met. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that it is an unlawful practice for any person proving veteran or military benefits services to: (i) receive compensation for referring any individual to another person to advise or assist the individual with any veterans' benefits matter; (ii) guarantee, either directly or by implication, a successful outcome or that any individual is certain to receive specific veterans' benefits; (iii) utilize international call centers or data centers for processing veterans' personal information; and (iv) other matters.

A BILL FOR

AN ACT concerning veterans.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Veteran Service Organizations State Charter Act is amended by changing the title of the Act and Sections 1, 5, 10, 15, 20, 25, 30, 35, 40, 45, and 50 as follows:

(330 ILCS 46/1)

Sec. 1. Short title. This Act may be cited as the Veteran Service Organizations Equal State Charter Act.

(Source: P.A. 103-405, eff. 1-1-24.)

(330 ILCS 46/5)

Sec. 5. Veteran service organization status State charter. A veteran service organization shall be considered to have veteran service organization status state chartered when the organization meets all of the requirements listed in this Act and the organization's application for veteran service organization state charter status has been approved by the Attorney General. Upon approval, the Attorney General shall issue a letter granting veteran service organization state charter status to the organization.

(Source: P.A. 103-405, eff. 1-1-24.)

(330 ILCS 46/10)

Sec. 10. Granting of veteran service organization state charter status. The Attorney General shall grant veteran service organization state charter status to any organization that has demonstrated that all requirements for obtaining veteran service organization state charter status have been met.

(Source: P.A. 103-405, eff. 1-1-24.)

(330 ILCS 46/15)

Sec. 15. Veteran service organization State charter requirements. To qualify for veteran service organization state charter status, a veteran service organization must:

(1)(A) Have been formed by and for veterans, have a board where a majority of its members are veterans, and have annual expenditures that demonstrate that 20% a majority of the organization's expenses reflect support for veterans; or (B) have a paid membership of at least 15 individuals and be associated with a congressionally chartered organization.

(2) Possess tax-exempt status from the Internal Revenue Service either under Section 501(c)(3) or Section 501(c)(19) of the Internal Revenue Code and have the primary charitable purpose of providing service or assistance to veterans, their spouses, or their dependents.

(3) Possess a current certificate of good standing as an Illinois registered not-for-profit organization from the Secretary of State.

(4) Obtain and maintain ongoing registration and compliance under the Charitable Trust Act with the Charitable Trust Bureau of the Attorney General's Office or substantiation for an exemption.

(5) For organizations with veteran service officers, demonstrate that each veteran service officer possesses a valid U.S. Department of Veterans Affairs accreditation or that such accreditation is pending.

(6) Comply with the methods and criteria set forth under Section 9 of the Military Veterans Assistance Act if the veteran service organization has delegates and alternates or is in the process of selecting and submitting delegates and alternates to a county Veterans Assistance Commission at the time of application for veteran service organization State charter status.

(Source: P.A. 103-405, eff. 1-1-24.)

(330 ILCS 46/20)

Sec. 20. Application for veteran service organization state charter status. A veteran service organization may submit an application for veteran service organization state charter status to the Attorney General. All supporting documentation demonstrating that each of the requirements listed in this Act have been met shall be provided with the application.

(Source: P.A. 103-405, eff. 1-1-24.)

(330 ILCS 46/25)

Sec. 25. Attestation of compliance. Any application for veteran service organization state charter status shall include the following statement, from the Commander, President, or chief executive officer: "I, on organizational letterhead and signed by all officers: "All officers for (insert lawful organizational name of the Commander, President, or chief executive officer) do hereby attest that all requirements for a veteran service organization status state charter have been met, that there are no past or ongoing enforcement actions or lawsuits against the organization or any of its officers for violations or suspected violations of the Consumer Fraud and Deceptive Business Practices Act, or the Military Veterans Assistance Act, and that we will notify the Attorney General within 30 days if, at any point, the organization no longer meets one or more of the requirements for veteran service organization state charter status."

(Source: P.A. 103-405, eff. 1-1-24.)

(330 ILCS 46/30)

Sec. 30. Denial of veteran service organization state charter. The Attorney General shall deny an application for veteran service organization state charter status to any organization that does not meet all the requirements for veteran service organization state charter status in Section 15. Any organization whose veteran service organization state charter application has been denied may resubmit that application once all deficiencies have been corrected.

(Source: P.A. 103-405, eff. 1-1-24.)

(330 ILCS 46/35)

Sec. 35. Duration of veteran service organization state charter status. Veteran service organization State charter status shall be valid for 3 years. A veteran service organization must reapply for veteran service organization state charter status at least 120 days prior to the expiration of its current state charter status.

(Source: P.A. 103-405, eff. 1-1-24.)

(330 ILCS 46/40)

Sec. 40. Revocation. If the Attorney General is made aware, either through notification as provided in Section 30 or through other information or evidence, that an organization that has been granted veteran service organization state charter status no longer meets one or more of the requirements of Section 15, the Attorney General may revoke the veteran service organization state charter status. Nothing in this Section is intended to take away or limit any powers of the Attorney General under common law or other statutory law, and the Attorney General may, in his or her sole discretion, request that a court revoke veteran service organization state charter status based on other conduct not specifically listed in this Section.

(Source: P.A. 103-405, eff. 1-1-24.)

(330 ILCS 46/45)

Sec. 45. Publication of state chartered veteran service organizations. The Attorney General shall maintain a publicly accessible list of state chartered veteran service organizations that are granted status in accordance with this Act.

(Source: P.A. 103-405, eff. 1-1-24.)

(330 ILCS 46/50)

Sec. 50. Violation; remedies. It is a violation of Section 9 of the Military Veterans Assistance Act for any person, group, or entity to assert veteran service organization state charter status where such status has not been granted in accordance with this Act or where such status has been revoked. In addition to any other remedies, a court may assess a civil penalty not to exceed $5,000 for each violation of this Act.

(Source: P.A. 103-405, eff. 1-1-24.)

Section 10. The Consumer Fraud and Deceptive Business Practices Act is amended by changing Section 2YYY as follows:

(815 ILCS 505/2YYY)

Sec. 2YYY. Deceptive practices targeting veterans and military members.

(a) As used in this Section:

"Compensation" means any money, thing of value, or economic benefit conferred on, or received by, any person in return for services rendered, or to be rendered, by himself or herself or another.

"Veteran or military benefits services" means any services offered or provided to a veteran, military member, or family member who is entitled to receive benefits under federal, State, or local law, policy, or practice as a result of, at least in part, qualifying military service. Such services include assistance, consulting or coaching in the preparation, presentation, or prosecution of claims or other attempts to obtain benefits, increase benefits, or appeal a decision related to obtaining or increasing benefits.

"Veterans services disclosures" means providing, in upper case type in size at least as large as the type size of the written communication or by voice-over, the following statements:

"THIS BUSINESS IS NOT ENDORSED OR SPONSORED BY, OR AFFILIATED WITH, THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS OR THE ILLINOIS DEPARTMENT OF VETERANS AFFAIRS, OR ANY FEDERALLY CHARTERED VA ACCREDITED VETERAN SERVICE ORGANIZATION. YOU MAY QUALIFY FOR OTHER VETERANS BENEFITS BEYOND THE BENEFITS FOR WHICH YOU ARE RECEIVING SERVICES HERE.".

"VETERAN AND MILITARY BENEFITS SERVICES ARE AVAILABLE FREE OF CHARGE FROM VA ACCREDITED COUNTY VETERAN SERVICE OFFICERS, REPRESENTATIVES OF THE ILLINOIS DEPARTMENT OF VETERANS AFFAIRS, AND THE VETERAN SERVICE OFFICERS OF FEDERALLY CHARTERED VETERAN SERVICE ORGANIZATIONS. TO LEARN MORE, CONTACT THESE ORGANIZATIONS OR THE ILLINOIS ATTORNEY GENERAL'S OFFICE AT 1-800-382-3000.".

(b) It is an unlawful practice within the meaning of this Act for any person providing veteran or military benefits services to:

(1) Fail in any advertising to conspicuously disclose veterans services disclosures when veteran or military benefits services are provided in exchange for any financial compensation, benefit or thing of value.

(2) Fail at the outset of the business relationship to clearly provide, both orally and in writing, veterans services disclosures when veteran or military benefits services are provided in exchange for any financial compensation, benefit or thing of value.

(3) Fail to obtain all veteran or military benefits services qualifications, certifications, and accreditations required under State or federal law for the services that person provides.

(3.5) Receive compensation for referring any individual to another person to advise or assist the individual with any veterans' benefits matter.

(3.6) Guarantee, either directly or by implication, a successful outcome or 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' benefit.

(4) Fail, when acting as a fiduciary for a veteran receiving benefits, to meet the responsibilities of fiduciaries under 38 CFR 13.140.

(5) Fail, when providing representation before the United States Department of Veterans Affairs, to meet the standards of conduct under 38 CFR 14.632.

(6) Charge fees or expenses in violation of 38 CFR 14.636 or 14.637.

(7) When acting as an accredited agent, attorney, or representative for a veteran, charge fees or expenses in violation of 38 CFR 14.636 or 14.637.

(8) When assisting, advising, or consulting with a veteran on an initial claim, receive any compensation for any services rendered in connection with any claim filed within the one year presumptive period of active-duty release, unless the veteran acknowledges by signing a waiver that the veteran is within this period and is choosing to deny any available free services.

(9) When assisting, advising, or consulting with a veteran on an initial claim, receive compensation without first memorializing the specific terms under which the amount to be paid will be determined in a written agreement signed by both parties. Compensation must be purely contingent upon an increase in benefits awarded, and if successful, compensation must not exceed 5 times the amount of the monthly increase in benefits awarded based on the claim. No initial or nonrefundable fee may be charged by a person advising, assisting, or consulting with a veteran on an initial claim.

(10) When assisting, advising, or consulting with a veteran on an initial claim for compensation, utilize international call centers or data centers for processing veterans' personal information.

(11) When assisting, advising, or consulting with a veteran on an initial claim for compensation, use a veteran's personal log-in, username, or password information to access that veteran's medical, financial, or government benefits information.

(12) When assisting, advising, or consulting with a veteran on an initial claim for compensation, fail to ensure that every individual who has access to the veteran's medical or financial information undergoes a background check prior to having access to that information. The background check must be conducted by a reputable source and include identity verification and a criminal records check.

(Source: P.A. 102-386, eff. 1-1-22; 102-813, eff. 5-13-22; 103-783, eff. 1-1-25.)