Legislation
SECTION 349-F
Pension poaching prevention
General Business (GBS) CHAPTER 20, ARTICLE 22-A
§ 349-f. Pension poaching prevention. 1. For purposes of this section:
(a) The term "veterans' benefits matter" means the preparation,
presentation, or prosecution of any claim affecting any person who has
filed or expressed an intent to file a claim for any benefit, program,
service, commodity, function, or status, entitlement which is determined
under the laws and regulations administered by the United States
department of veterans affairs or the New York state division of
veterans' affairs pertaining to veterans, their dependents, their
survivors, and any other party eligible for such benefits.
(b) The term "compensation" means money, property, or anything else of
value.
(c) The term "entity" includes, but is not limited to, any natural
person, corporation, trust, partnership, alliance, or unincorporated
association.
2. * (a) No entity shall receive compensation for advising or
assisting any party with any veterans' benefits matter, except as
permitted under title 38 of the United States code and the corresponding
provisions within title 38 of the United States code of federal
regulations.
* NB Effective until May 4, 2026
* (a) No entity shall solicit, contract for, charge, or receive, or
attempt to solicit, contract for, charge, or receive, any fee or
compensation with respect to any veterans' benefits matter, except as
permitted under title 38 of the United States code and the corresponding
provisions within title 38 of the United States code of federal
regulations with respect to veterans' benefits matters before the United
States department of veterans affairs, or as permitted under state law
or rules issued by the commissioner of veterans' services with respect
to veterans' benefits matters before the department of veterans'
services.
* NB Effective May 4, 2026
(b) No entity shall receive compensation for referring any party to
another individual to advise or assist this party with any veterans'
benefits matter.
(c) Any entity seeking to receive compensation for advising or
assisting any party with any veterans' benefits matter shall, before
rendering any services, memorialize all terms regarding the party's
payment of fees for services rendered in a written agreement, signed by
both parties, that adheres to all criteria specified within title 38,
section 14.636, of the United States code of federal regulations.
(d) No entity shall receive any fees for any services rendered before
the date on which a notice of disagreement is filed with respect to the
party's case.
(e) No entity shall guarantee, either directly or by implication, that
any party is certain to receive specific veterans' benefits or that any
party is certain to receive a specific level, percentage, or amount of
veterans' benefits.
(f) No entity shall receive excessive or unreasonable fees as
compensation for advising or assisting any party with any veterans'
benefits matter. The factors articulated within title 38, section 14.636
of the code of federal regulations shall govern determinations of
whether a fee is excessive or unreasonable.
3. (a) No entity shall advise or assist for compensation any party
with any veterans' benefits matter without clearly providing, at the
outset of this business relationship, the following disclosure, both
orally and in writing: "this business is not sponsored by, or affiliated
with, the United States department of veterans affairs, the New York
state division of veterans' affairs, or any other congressionally
chartered veterans service organization. Other organizations, including
but not limited to the New York state division of veterans' affairs,
your local county veterans service agency, and other congressionally
chartered veterans service organizations, may be able to provide you
with this service free of charge. Products or services offered by this
business are not necessarily endorsed by any of these organizations. You
may qualify for other veterans' benefits beyond the benefits for which
you are receiving services here." The written disclosure must appear in
at least twelve-point font and must appear in a readily noticeable and
identifiable place in the entity's agreement with the party seeking
services. The party must verbally acknowledge understanding of the oral
disclosure and must provide his or her signature to represent
understanding of these provisions on the document in which the written
disclosure appears. The entity offering services must retain a copy of
the written disclosure while providing veterans' benefits services for
compensation to the party and for at least one year after the date on
which this service relationship terminates.
(b) No entity shall advertise for-compensation services in veterans
benefits matters without including the following disclosure: "this
business is not sponsored by, or affiliated with, the United States
department of veterans affairs, the New York state division of veterans'
affairs, or any other congressionally chartered veterans service
organization. Other organizations, including but not limited to the New
York state division of veterans' affairs, your local county veterans
service agency, and other congressionally chartered veterans service
organizations, may be able to provide you with these services free of
charge. Products or services offered by this business are not
necessarily endorsed by any of these organizations. You may qualify for
other veterans' benefits beyond the services that this business offers."
If the advertisement is printed, including but not limited to
advertisements visible to internet users, the disclosure must appear in
a readily visible place on the advertisement. If the advertisement is
verbal, the spoken statement of the disclosure must be clear and
intelligible.
4. * (a) Any violation of this section shall constitute a deceptive
act in the conduct of business, trade, or commerce, and shall be subject
to the provisions of section three hundred forty nine of this article,
including any right of action and corresponding penalties described
within such section.
* NB Effective until May 4, 2026
* (a) Any violation of this section shall constitute a deceptive act
in the conduct of business, trade, or commerce, and except as otherwise
provided in this section, shall be subject to the provisions of section
three hundred forty-nine of this article, including any right of action
and corresponding penalties described within such section.
* NB Effective May 4, 2026
(b) If an entity's violation of this section concerns a party who is
sixty-five years of age or older, said entity may be liable for
supplemental civil penalties as established within, and subject of the
terms of, section three hundred forty-nine-c of this article.
* (c) Notwithstanding any provision of section three hundred
forty-nine of this article to the contrary:
(i) An individual who is harmed by an entity as a result of an
entity's violation of this section may bring an action in their own name
against an entity to enjoin such unlawful act or practice, an action to
recover their actual damages or twenty-five hundred dollars, whichever
is greater, or both such actions, in addition to any other remedy
available in law or equity. The court may award costs and reasonable
attorney's fees to a prevailing plaintiff.
(ii) Whenever the court shall determine that a violation of this
section has occurred, the court may impose a civil penalty of not more
than ten thousand dollars for each violation.
(iii) Any violation of paragraph (a) of subdivision two of this
section shall be a class A misdemeanor, and upon conviction thereof,
shall be punishable by a fine of not more than one thousand dollars, or
by imprisonment for not more than one year, or by both such fine and
imprisonment; provided however, a second or subsequent offense shall be
punishable by a fine of not more than three thousand dollars or by
imprisonment for not more than one year, or by both such fine and
imprisonment. In addition, the court may order as part of the sentence
imposed restitution or reparation to the victim of the crime pursuant to
section 60.27 of the penal law. The attorney general shall have the
power to prosecute any violation of paragraph (a) of subdivision two of
this section.
(iv) The civil and criminal remedies set forth in this section shall
not preclude any individual or entity or government authority from
seeking relief under any other statutory or common law right to relief.
* NB Effective May 4, 2026
* 5. If any clause, sentence, paragraph or part of this section or the
application thereof shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph or part thereof directly involved in
the controversy in which such judgment shall have been rendered.
* NB Effective until May 4, 2026
* 5. (a) In addition to any liability for damages or a civil penalty
imposed pursuant to sections three hundred forty-nine, three hundred
fifty-c and three hundred fifty-d of this chapter, regarding deceptive
practices and false advertising, and subdivision twelve of section
sixty-three of the executive law, regarding proceedings by the attorney
general for equitable relief against fraudulent or illegal consumer
fraud, a person or entity who engages in any conduct prohibited by such
provisions of law, and whose conduct is perpetrated against one or more
persons seeking or using services in connection with a veterans'
benefits matter, may be liable for an additional civil penalty not to
exceed ten thousand dollars, in accordance with paragraph (b) of this
subdivision.
(b) In determining whether to impose a supplemental civil penalty
pursuant to paragraph (a) of this subdivision, and the amount of any
such penalty, the court shall consider, in addition to other appropriate
factors as determined by the court, the extent to which the following
factors are present:
(i) whether the defendant knew that such defendant's conduct was
directed to one or more persons seeking or using services in connection
with a veteran's benefits matter or whether such defendant knowingly
acted with disregard for the rights of a person seeking or using
services in connection with a veterans' benefits matter;
(ii) whether the defendant's conduct:
(1) caused a person seeking or using services to suffer loss or
encumbrance of a primary residence, loss of employment or source of
income, substantial loss of property or assets essential to the health
or welfare of the person seeking or using services in connection with a
veteran's benefits matter; or
(2) whether one or more persons seeking or using services in
connection with a veteran's benefits matter were substantially more
vulnerable to such defendant's conduct because of disability, impaired
understanding, or any other perceived disadvantage, and actually
suffered physical or economic damage resulting from such defendant's
conduct.
(c) Restitution ordered pursuant to the provisions of law listed in
paragraph (a) of this subdivision or pursuant to any other section of
law shall be given priority over the imposition of civil penalties
ordered by the court under this subdivision.
* NB Effective May 4, 2026
* 6. If any clause, sentence, paragraph or part of this section or the
application thereof shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph or part thereof directly involved in
the controversy in which such judgment shall have been rendered.
* NB Effective May 4, 2026
(a) The term "veterans' benefits matter" means the preparation,
presentation, or prosecution of any claim affecting any person who has
filed or expressed an intent to file a claim for any benefit, program,
service, commodity, function, or status, entitlement which is determined
under the laws and regulations administered by the United States
department of veterans affairs or the New York state division of
veterans' affairs pertaining to veterans, their dependents, their
survivors, and any other party eligible for such benefits.
(b) The term "compensation" means money, property, or anything else of
value.
(c) The term "entity" includes, but is not limited to, any natural
person, corporation, trust, partnership, alliance, or unincorporated
association.
2. * (a) No entity shall receive compensation for advising or
assisting any party with any veterans' benefits matter, except as
permitted under title 38 of the United States code and the corresponding
provisions within title 38 of the United States code of federal
regulations.
* NB Effective until May 4, 2026
* (a) No entity shall solicit, contract for, charge, or receive, or
attempt to solicit, contract for, charge, or receive, any fee or
compensation with respect to any veterans' benefits matter, except as
permitted under title 38 of the United States code and the corresponding
provisions within title 38 of the United States code of federal
regulations with respect to veterans' benefits matters before the United
States department of veterans affairs, or as permitted under state law
or rules issued by the commissioner of veterans' services with respect
to veterans' benefits matters before the department of veterans'
services.
* NB Effective May 4, 2026
(b) No entity shall receive compensation for referring any party to
another individual to advise or assist this party with any veterans'
benefits matter.
(c) Any entity seeking to receive compensation for advising or
assisting any party with any veterans' benefits matter shall, before
rendering any services, memorialize all terms regarding the party's
payment of fees for services rendered in a written agreement, signed by
both parties, that adheres to all criteria specified within title 38,
section 14.636, of the United States code of federal regulations.
(d) No entity shall receive any fees for any services rendered before
the date on which a notice of disagreement is filed with respect to the
party's case.
(e) No entity shall guarantee, either directly or by implication, that
any party is certain to receive specific veterans' benefits or that any
party is certain to receive a specific level, percentage, or amount of
veterans' benefits.
(f) No entity shall receive excessive or unreasonable fees as
compensation for advising or assisting any party with any veterans'
benefits matter. The factors articulated within title 38, section 14.636
of the code of federal regulations shall govern determinations of
whether a fee is excessive or unreasonable.
3. (a) No entity shall advise or assist for compensation any party
with any veterans' benefits matter without clearly providing, at the
outset of this business relationship, the following disclosure, both
orally and in writing: "this business is not sponsored by, or affiliated
with, the United States department of veterans affairs, the New York
state division of veterans' affairs, or any other congressionally
chartered veterans service organization. Other organizations, including
but not limited to the New York state division of veterans' affairs,
your local county veterans service agency, and other congressionally
chartered veterans service organizations, may be able to provide you
with this service free of charge. Products or services offered by this
business are not necessarily endorsed by any of these organizations. You
may qualify for other veterans' benefits beyond the benefits for which
you are receiving services here." The written disclosure must appear in
at least twelve-point font and must appear in a readily noticeable and
identifiable place in the entity's agreement with the party seeking
services. The party must verbally acknowledge understanding of the oral
disclosure and must provide his or her signature to represent
understanding of these provisions on the document in which the written
disclosure appears. The entity offering services must retain a copy of
the written disclosure while providing veterans' benefits services for
compensation to the party and for at least one year after the date on
which this service relationship terminates.
(b) No entity shall advertise for-compensation services in veterans
benefits matters without including the following disclosure: "this
business is not sponsored by, or affiliated with, the United States
department of veterans affairs, the New York state division of veterans'
affairs, or any other congressionally chartered veterans service
organization. Other organizations, including but not limited to the New
York state division of veterans' affairs, your local county veterans
service agency, and other congressionally chartered veterans service
organizations, may be able to provide you with these services free of
charge. Products or services offered by this business are not
necessarily endorsed by any of these organizations. You may qualify for
other veterans' benefits beyond the services that this business offers."
If the advertisement is printed, including but not limited to
advertisements visible to internet users, the disclosure must appear in
a readily visible place on the advertisement. If the advertisement is
verbal, the spoken statement of the disclosure must be clear and
intelligible.
4. * (a) Any violation of this section shall constitute a deceptive
act in the conduct of business, trade, or commerce, and shall be subject
to the provisions of section three hundred forty nine of this article,
including any right of action and corresponding penalties described
within such section.
* NB Effective until May 4, 2026
* (a) Any violation of this section shall constitute a deceptive act
in the conduct of business, trade, or commerce, and except as otherwise
provided in this section, shall be subject to the provisions of section
three hundred forty-nine of this article, including any right of action
and corresponding penalties described within such section.
* NB Effective May 4, 2026
(b) If an entity's violation of this section concerns a party who is
sixty-five years of age or older, said entity may be liable for
supplemental civil penalties as established within, and subject of the
terms of, section three hundred forty-nine-c of this article.
* (c) Notwithstanding any provision of section three hundred
forty-nine of this article to the contrary:
(i) An individual who is harmed by an entity as a result of an
entity's violation of this section may bring an action in their own name
against an entity to enjoin such unlawful act or practice, an action to
recover their actual damages or twenty-five hundred dollars, whichever
is greater, or both such actions, in addition to any other remedy
available in law or equity. The court may award costs and reasonable
attorney's fees to a prevailing plaintiff.
(ii) Whenever the court shall determine that a violation of this
section has occurred, the court may impose a civil penalty of not more
than ten thousand dollars for each violation.
(iii) Any violation of paragraph (a) of subdivision two of this
section shall be a class A misdemeanor, and upon conviction thereof,
shall be punishable by a fine of not more than one thousand dollars, or
by imprisonment for not more than one year, or by both such fine and
imprisonment; provided however, a second or subsequent offense shall be
punishable by a fine of not more than three thousand dollars or by
imprisonment for not more than one year, or by both such fine and
imprisonment. In addition, the court may order as part of the sentence
imposed restitution or reparation to the victim of the crime pursuant to
section 60.27 of the penal law. The attorney general shall have the
power to prosecute any violation of paragraph (a) of subdivision two of
this section.
(iv) The civil and criminal remedies set forth in this section shall
not preclude any individual or entity or government authority from
seeking relief under any other statutory or common law right to relief.
* NB Effective May 4, 2026
* 5. If any clause, sentence, paragraph or part of this section or the
application thereof shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph or part thereof directly involved in
the controversy in which such judgment shall have been rendered.
* NB Effective until May 4, 2026
* 5. (a) In addition to any liability for damages or a civil penalty
imposed pursuant to sections three hundred forty-nine, three hundred
fifty-c and three hundred fifty-d of this chapter, regarding deceptive
practices and false advertising, and subdivision twelve of section
sixty-three of the executive law, regarding proceedings by the attorney
general for equitable relief against fraudulent or illegal consumer
fraud, a person or entity who engages in any conduct prohibited by such
provisions of law, and whose conduct is perpetrated against one or more
persons seeking or using services in connection with a veterans'
benefits matter, may be liable for an additional civil penalty not to
exceed ten thousand dollars, in accordance with paragraph (b) of this
subdivision.
(b) In determining whether to impose a supplemental civil penalty
pursuant to paragraph (a) of this subdivision, and the amount of any
such penalty, the court shall consider, in addition to other appropriate
factors as determined by the court, the extent to which the following
factors are present:
(i) whether the defendant knew that such defendant's conduct was
directed to one or more persons seeking or using services in connection
with a veteran's benefits matter or whether such defendant knowingly
acted with disregard for the rights of a person seeking or using
services in connection with a veterans' benefits matter;
(ii) whether the defendant's conduct:
(1) caused a person seeking or using services to suffer loss or
encumbrance of a primary residence, loss of employment or source of
income, substantial loss of property or assets essential to the health
or welfare of the person seeking or using services in connection with a
veteran's benefits matter; or
(2) whether one or more persons seeking or using services in
connection with a veteran's benefits matter were substantially more
vulnerable to such defendant's conduct because of disability, impaired
understanding, or any other perceived disadvantage, and actually
suffered physical or economic damage resulting from such defendant's
conduct.
(c) Restitution ordered pursuant to the provisions of law listed in
paragraph (a) of this subdivision or pursuant to any other section of
law shall be given priority over the imposition of civil penalties
ordered by the court under this subdivision.
* NB Effective May 4, 2026
* 6. If any clause, sentence, paragraph or part of this section or the
application thereof shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph or part thereof directly involved in
the controversy in which such judgment shall have been rendered.
* NB Effective May 4, 2026