The proposed legislation, known as Governor's Bill No. 6874, aims to establish protections for veterans against exploitative practices by individuals or entities offering assistance with veterans benefits claims, often referred to as "benefits claim sharks." Effective October 1, 2025, the bill prohibits any person from receiving compensation for advising or assisting individuals with veterans benefits matters unless specific conditions are met. These conditions include providing a written agreement detailing payment terms, ensuring that no compensation is received prior to the filing of a notice of disagreement, and prohibiting guarantees of specific benefits. Additionally, the bill mandates that any fees charged must be reasonable, as determined by federal regulations.

The legislation also requires that individuals providing such services must disclose their lack of affiliation with the United States Department of Veterans Affairs or the Connecticut Department of Veterans Affairs, and inform clients about the availability of free services from other organizations. This disclosure must be presented in a clear and identifiable manner, both in written agreements and advertisements. The intent of the bill is to protect veterans from potentially misleading or predatory practices while ensuring they are informed of their rights and available resources.