SB206 Alabama 2025 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Josh CarnleySenator
Republican
Session: 2025 Regular Session
Title: Veterans benefits; parameters imposed on businesses advising clients on making claims for benefits; violations a deceptive trade practice
Summary: SB206 sets rules for businesses that advise or assist with veterans benefits claims, requiring VA accreditation, clear disclosures, fee limits, and penalties for deceptive practices.
What This Bill Does
The bill requires anyone helping with veterans benefits claims to be accredited by the U.S. Department of Veterans Affairs. It mandates written fee agreements and both oral and written disclosures that the business is not VA-sponsored and that other groups may provide free help, with disclosures in a visible location and acknowledged by the client. It bans guaranteeing benefits or specific amounts, and it restricts excessive fees; it also requires advertising disclosures and prohibits referral payments. Violations would be treated as deceptive trade practices, with an exemption for federally accredited attorneys, and the act becomes effective on October 1, 2025.

Who It Affects
Individuals seeking veterans benefits who use advisory or legal services (claimants).
Advisers and attorneys who help claimants with benefits, who must be VA-accredited and follow disclosure and fee rules.
Businesses and organizations that advertise or provide veterans benefits assistance, subject to disclosure, fee and advertising requirements.

Key Provisions
Accreditation requirement: No person may assist with veterans benefits claims as an agent or attorney unless accredited by the U.S. Department of Veterans Affairs.
Written fee agreements and disclosures: Before services are provided, the provider must memorialize fees in a written agreement signed by both parties and supply an oral and written disclosure stating the business is not sponsored by or affiliated with VA or other listed organizations; the disclosure must be in 12-point font, in a visible place, and the client must acknowledge understanding and sign; a copy of the disclosure must be retained for at least one year after termination.
Prohibited practices: Providers may not guarantee benefits or specific amounts and may not charge excessive or unreasonable fees.
Advertising disclosures: Advertisements must include the required disclosure about sponsorship and availability of free services; printed ads must place the disclosure in a visible location; verbal disclosures must be clear.
Referral ban: People may not receive compensation for referring a client to another adviser for veterans benefits matters.
Enforcement: Violations are considered Deceptive Trade Practices under Alabama law.
Exemption: The act does not apply to attorneys accredited by the federal government under 38 C.F.R. § 14.629.
Effective date: The act becomes effective on October 1, 2025.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Military