REFERENCE TITLE: veterans claims pilot program

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2245

Introduced by

Representative Blackman

AN ACT

amending title 41, chapter 3, article 7, Arizona Revised Statutes, by adding section 41-610.03; repealing section 41-610.03, Arizona Revised Statutes; appropriating monies; relating to the department of veterans' services.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 41, chapter 3, article 7, Arizona Revised Statutes, is amended by adding section 41-610.03, to read:

START_STATUTE41-610.03. Veteran claims pilot program; report; definition

A. The veteran claims pilot program is established in the department to evaluate the effectiveness of claims development technology systems that are designed to do all of the following:

1. Conduct comprehensive digital reviews of veterans medical records, service treatment records, personnel files and any supporting documentation.

2. Identify all supportable primary and secondary service connected conditions based on available evidence.

3. Map documented conditions to applicable federal diagnostic and rating criteria.

4. Produce complete and fully developed disability compensation claim packets suitable for submission to the united states department of veterans affairs.

B. The department shall:

1. integrate The program with existing state veteran benefits counselors, county veteran service offices, tribal veteran programs and any accredited nonprofit service officers to assess the effectiveness of the program.

2. Select officers in this state to participate in the program from all of the following:

(a) State veteran benefits counseling offices in urban areas.

(b) county veteran service offices.

(c) subject to tribal approval, tribal veterans service programs.

3. Establish a control group consisting of accredited personnel who do not use the claims development technology system during the program.

C. The department shall ensure all of the following:

1. that all program users receive necessary training on the claims development technology system.

2. That veterans participating in the program retain full access to traditional veteran service ORGANIZATION assistance.

3. That data collected through the claims development technology system is not used for any commercial or non-program purposes.

4. That all records are handled in compliance with all state and federal privacy laws.

D. Participation in the program may not alter or limit the role of accredited veteran benefits counselors or officers in advising, representing or assisting veterans in this state.

E. The department may enter into agreements, memoranda of understanding or service contracts necessary to administer the program.

F. The department shall evaluate the effectiveness of the program using all of the following performance indicators:

1. The average time required to prepare claim submissions.

2. The first-time approval rates for veteran disability compensation claims.

3. The number and type of conditions identified per veteran.

4. The frequency of remands, supplemental claims or duty to assist errors.

5. Veteran satisfaction with claim preparation.

6. The estimated change in annual federal disability compensation awarded to participating veterans.

G. On or before July 1, 2027, the department shall submit a report to the governor, the PRESIDENT of the senate and the speaker of the house of representatives and the chairperson of the senate military affairs and border security committee, the chairperson of the house of representatives federalism, military affairs and elections committee, the CHAIRPERSON of the senate APPROPRIATIONS committee and the chairperson of the house of representatives appropriations committee, or their successor committees, that includes all of the following information:

1. A description of program activities and participating offices.

2. A comparison between program participants and the control group.

3. The Estimated fiscal impact to this state, including reductions in state or county safety net expenditures.

4. The Estimated increase in federal disability compensation awarded to veterans in this state.

5. Recommendations on whether to expand, modify or discontinue the program.

H. For the purposes of this section, "claims development technology system" means A digital platform that is capable of analyzing large-scale veteran record sets, identifying evidence-supported service connected conditions and preparing fully developed disability compensation claim documentation. END_STATUTE

Sec. 2. Delayed repeal

Section 41-610.03, Arizona Revised Statutes, as added by this act, is repealed from and after June 30, 2027.

Sec. 3. Appropriation; department of veterans' services; exemption

A. The sum of $_______ is appropriated from the state general fund in fiscal year 2026-2027 to the department of veterans' services for the purposes of section 41-610.03, Arizona Revised Statutes, as added by this act.

B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.