Committee hears AG counsel on H.103, agrees to delay for language and disclosure fixes
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Summary
The Government Operations & Military Affairs committee reviewed H.103, which would apply consumer-protection law to services assisting veterans with benefits. The Attorney General's Office outlined enforcement tools and flagged carve-outs and accreditation questions; members agreed to delay action to refine disclosure language and research other states' experiences.
Don Delos, assistant attorney general and director of policy and legislative affairs at the Attorney General's Office, told the Government Operations & Military Affairs Committee that the bill's new section is a simple cross-reference to the state's Consumer Protection Act and explained how enforcement would work.
"The new section 17 56 is just a simple cross reference to the Consumer Protection Act, which is 9 VSA 24 53," Delos said, adding that the Consumer Protection Act (chapter 63 within title 9) defines deceptive acts and practices in commerce that enable the state to investigate, seek penalties and, in some cases, restitution.
The bill under consideration, H.103, would limit certain practices by paid service providers who assist veterans in applying for benefits. Delos told the committee the Attorney General's Office acts on behalf of the state — "we don't bring cases on behalf of individuals" — and described enforcement tools available under the statute, including investigations and civil penalties. He noted the draft permits penalties "up to $10,000 per violation."
Committee members pressed for operational detail. Several lawmakers raised concerns about new carve-out language in the draft that could exempt certain entities from the statute. Delos said that carve-outs could complicate enforcement because the office would need to determine whether alleged bad actors fall inside any exemption.
A recurring question for the committee was whether to ban paid assistance outright or to impose tighter guardrails. One member cited other states that have taken stronger approaches and asked how Vermont arrived at regulatory language rather than a ban. Committee members who have worked on the draft said the intent was to exclude clearly predatory actors while preserving access to legitimate navigators and accredited representatives.
A committee member described the online solicitation practices the bill is meant to address. "You know, veterans, I can help you get x y z," the member said, characterizing social-media posts and direct mail that promise benefits while charging large fees or taking high percentages of recoveries. Another member recounted receiving formal-looking solicitations after a bereavement and warned that elderly or less tech-savvy veterans can be especially vulnerable to such offers.
Lawmakers also asked whether limiting compensated services to VA-accredited representatives would be an appropriate protective measure. Delos said the Attorney General's Office had no formal position on accreditation language but observed that an objective verification or accreditation process can be a useful consumer-protection tool depending on the accreditor's rigor and oversight.
Members asked the staff to check other states' experience. The committee discussed Tennessee, which was cited during previous testimony, and Delos offered to review any litigation or unintended consequences in jurisdictions that adopted similar laws.
On procedure, the committee agreed to delay further action to allow additional review and edits. Members emphasized the importance of disclosure language in the bill; one lawmaker urged that any required notice making veterans aware that free services exist should be "at the top of that disclosure and should be prominent." The committee also adjusted its calendar to reserve more time for H.67 and other moving items tied to the veterans-services discussion.
Next steps: staff will review interstate litigation history and work with counsel on precise carve-out and disclosure language before the committee reconvenes for further consideration.
