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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
veterans' benefits; claims; prohibition
Purpose
Establishes prohibitions, requirements and procedures for an unaccredited person to receive compensation for assisting with veterans' benefits matters, limits any compensation received and encourages legal action against violators.
Background
The duties of the Arizona Department of Veterans' Services (ADVS) include: 1) assisting veterans and veterans' family members and dependents 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 and veterans' family members and dependents; 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 accredited veterans' service organizations (VSOs) 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 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 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.
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. Prohibits a person receiving compensation for assisting with an initial claim, supplemental claim or higher-level review from:
a) guaranteeing, to an individual the person is advising, consulting, assisting, guiding, coaching or training regarding a veterans' benefits matter, that the individual will receive a specific veterans' benefit or a specific level, percentage or amount of veterans' benefits;
b) using predatory advertising practices, including guaranteeing a successful outcome or an increase in veterans' benefits;
c) employing a medical provider to conduct a medical examination;
d) using an international call or data center for processing a veteran's personal information;
e) gaining direct access to any veteran's personal medical, financial or government benefits information;
f) charging an up-front or nonrefundable fee for advising, consulting, assisting, guiding, coaching or training an individual regarding a veterans' benefits matter; or
g) contacting the U.S. VA directly to obtain any veterans' benefits or payment information regarding the individual without the prior authorization of the individual.
5. Requires any compensation received regarding a veterans' benefits matter to be:
a) contingent on the veteran's benefits being increased; and
b) capped at a onetime fee that is no more than five times the monthly amount of the veteran's increase in benefits.
6. Requires a person receiving compensation for assisting with an initial claim, supplemental claim or higher-level review to always act in the individual's best interest.
7. Requires a person, before receiving compensation for assisting with an initial claim, supplemental claim or higher-level review, 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 services may cancel the agreement without a financial penalty; and
c) a disclosure written in 12-point font placed in a readily noticeable and easily identifiable place in the agreement with a separate line that must be initialed by the individual receiving services that states, "This business is not accredited by the U.S. VA and cannot assist with an appeal to the U.S. Board of Veterans' Appeals. This business is not sponsored by, endorsed by or affiliated with ADVS, the U.S. VA or any other federally chartered VSOs. ADVS, the U.S. VA, a local VSO or a federally-chartered VSO may be able to provide you with this service free of charge."
8. Sets the expiration of the three-day period on the third day at midnight after the contract is signed by all parties.
9. Requires a person that is not accredited and receives compensation for assisting with an initial claim, supplemental claim or higher-level review to file a copy of any standard fee agreement or service contract with the Attorney General's (AG) Office.
10. Stipulates that any fee agreement or service contract that deviates from the previously filed agreement or contract must also be filed with the AG's Office.
11. States that a violation of the prescribed requirements for assisting with veterans' benefits matters constitutes an unlawful practice.
12. Allows the AG to investigate violations and take any appropriate action.
13. Entitles an individual who has contracted with a person for assistance with an initial claim, supplemental claim or higher-level review to a cause of action against the person if the person fails to comply with the prescribed requirements for assisting with veterans' benefits matters.
14. Asserts that the prescribed requirements for assisting with veterans' benefits matters do not apply to, 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 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.
16. Defines a person as including any corporation, trust, partnership, incorporated or unincorporated association or any other legal entity.
17. Defines compensation, initial claim, supplemental claim and higher-level review.
18. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Stipulates that the disclosure contained in the written agreement must include a separate line that must be initialed by the individual receiving services.
Senate Action
MABS 2/9/26 DPA 5-2-0
Prepared by Senate Research
July 16, 2026
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