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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
veterans' benefits; claims; prohibition
Purpose
Establishes prohibitions, requirements and procedures for persons assisting with veterans' benefits matters and limits any compensation received for providing assistance.
Background
The Arizona Department of Veterans' Services (ADVS) duties
include: 1) assisting veterans, family members of veterans and dependents of
veterans in presenting, providing and establishing claims, privileges, rights
and benefits provided under federal, state or local law;
2) cooperating with all government and private agencies receiving services for
or benefits to veterans, family members of veterans and dependents of veterans;
3) entering into agreements with veterans' organizations in Arizona that hold a
charter granted by the U.S. Congress for the beneficial interest of veterans;
4) evaluating programs offered by educational institutions and training
establishments pursuant to federal and state law, so that veterans and
dependents of veterans may draw the educational allowance provided by federal
law while pursuing approved programs; and 5) establishing an application
process for the Arizona Gold Star Military Medal, verifying the eligibility of
recipients and, if funding is available, awarding the Medal to an eligible
individual (A.R.S.
§ 41-603).
The U.S. Department of Veterans Affairs (U.S. VA) is an agency of the federal government that provides benefits, health care and cemetery services to military veterans. The Veterans Benefits Administration within the U.S. VA is responsible for initial veteran registration, eligibility determination and administration of nonmedical benefits, including home loan guarantees, insurance, vocational training, education and pension compensation. The U.S. VA maintains a directory of recognized veterans' service organizations that are sometimes used to assist with applications for veterans benefits and appeals (U.S. VA).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a person from acting as an agent or an attorney in preparing, presenting or prosecuting any veterans' benefits matter unless the person is recognized for such purposes by the U.S. VA.
2. Prohibits a person receiving compensation for referring an individual to another person to advise, consult or assist the individual regarding a veterans' benefits matter.
3. Allows a person that is not acting as an agent or attorney to only receive compensation for advising, consulting, guiding, coaching or training an individual for an initial claim, supplemental claim or higher level review.
4. Requires a person receiving compensation regarding a veterans' benefits matter to always act in the individual's best interest.
5. Requires a person that is not accredited and receives compensation to file a copy of any standard fee agreement or service contract with the Attorney General's Office.
6. Stipulates that any fee agreement or service contract that deviates from the standard fee agreement or service contract previously filed must also be filed with the Attorney General's Office.
7. Prohibits a person that is not acting as an agent or attorney from receiving compensation for referring an individual to another person to advise, consult, assist, guide, coach or train the individual regarding a veterans' benefits matter.
8. Requires the person, before receiving compensation, to prepare a written agreement that is signed by all parties involved and contains:
a) the terms of the agreement, including the fee structure for the services being provided;
b) a provision allowing for a three-day period in which the individual receiving the services may cancel the agreement without a financial penalty; and
c) a disclosure written in 12-point font, in a readily noticeable and easily identifiable place stating that the business is not sponsored, endorsed by or affiliated with ADVS or the U.S. VA or other federally chartered veterans' service organizations, and that specified organizations may be able to provide the veteran with the same services free of charge.
9. Requires any compensation received regarding a veterans' benefits matter to be contingent on the veteran's benefits being increased.
10. Caps compensation at a onetime fee that is no more than five times the monthly amount of the veteran's increase in benefits.
11. States that a violation of the requirements for advising, consulting or assisting an individual with a veterans' benefits matter constitutes an unlawful practice.
12. Allows the Attorney General to investigate violations and take appropriate action.
13. Entitles an individual who has contracted with a person in violation of the prohibition has a cause of action against the person if the person fails to comply with this section
14. Clarifies that the outlined prohibitions do not apply, limit or expand the requirements imposed on agents, attorneys or other representatives who are accredited and regulated by the U.S. VA.
15. Defines a person as including any corporation, trust, partnership, incorporated or unincorporated association or any other legal entity.
16. Defines a veterans' benefits matter as any benefit, program, service, commodity, function or status the entitlement to which is determined by the ADVS or the U.S. VA pertaining to veterans, veterans' dependents, veterans' survivors and any other individual eligible for such benefits.
17. Defines compensation as any money, item of value or economic benefit conferred on or received by an individual in return for services provided by a person.
18. Defines terms.
19. Becomes effective on the general effective date.
Prepared by Senate Research
February 5, 2026
KJA/ci