Official Summary Text
SB1803 - 572R - Senate Fact Sheet
Assigned to
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PASSED BY COW
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
S.B. 1803
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;
g)
contacting
the U.S. VA by impersonating the individual or an accredited representative or
initiating contact with the U.S. VA while falsely purporting to have the authority
to act on the individual's behalf;
h)
submitting
paperwork, forms, evidence or any documentation to the U.S. VA or any
governmental entity on behalf of the individual;
i)
receiving,
holding or exercising a power of attorney to act on behalf of the individual in
connection with a veterans' benefits matter; and
j)
representing
or purporting to represent the individual in any communication, negotiation,
hearing, review or proceeding before the U.S. VA or any governmental entity.
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.
Amendments
Adopted by
Committee of the Whole
�
Prohibits a person receiving compensation for assisting with an
initial claim, supplemental claim or higher-level review from:
a)
submitting
any documentation to any governmental entity on behalf of the individual;
b)
holding
a power of attorney to act on behalf of the individual in connection with a
veteran's benefits matter;
c)
representing
or purporting to represent the individual in any communication. negotiation,
hearing, review or proceeding before any governmental entity; and
d)
contacting
the U.S. VA by impersonation or initiating contact with the U.S. VA while
falsely purporting to have the authority to act on behalf of the individual,
rather than contacting the U.S. VA directly to obtain any veterans' benefits or
payment information regarding the individual without prior authorization.
Senate Action
MABS������������ 2/9/26������� DPA������ 5-2-0
Prepared by
Senate Research
July 16, 2026
KJA/ci
Current Bill Text
Read the full stored bill text
SB1803 - 572R - S Ver
Senate Engrossed
veterans' benefits;
claims; prohibition
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1803
AN
ACT
Amending Title 41, chapter 3, article 7,
Arizona Revised Statutes, by adding section 41-610.03; 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_STATUTE
41-610.03.
Veterans' benefits; claims; prohibition; compensation;
disclosure; enforcement; applicability; definitions
A. a person may not act 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 united states
department of veterans affairs.
B. A person that is not acting as an
agent or attorney may only receive compensation for advising, consulting,
guiding, coaching or training an individual for an initial claim, supplemental
claim or higher level review. A person that is not accredited and
receives compensation pursuant to this section shall file a copy of any
standard fee agreement or service contract with the attorney general's office.
Any fee agreement or service contract that deviates from the standard fee agreement
or service contract previously filed with the attorney general's office must
also be filed with the attorney general's office.
C. A person THAT IS NOT ACTING AS AN
AGENT OR ATTORNEY may not receive compensation for Referring an INDIVIDUAL to
another person to advise, consult, assist, guide, coach or train the INDIVIDUAL
regarding a veterans' benefits matter.
D. Before receiving compensation
pursuant to subsection B of this section, the person shall prepare a written
agreement that is signed by all the parties involved and that contains the
following:
1. The terms of the agreement,
including the fee structure for the services being provided.
2. A provision allowing for a three-day
period in which the individual receiving the services may cancel the agreement
without a financial penalty. The three-day period expires on the third
day at midnight after the contract is signed by all the parties.
3. The following disclosure in twelve-point
font placed in a readily NOTICEABLE and easily identifiable place in the
written agreement:
THIS BUSINESS IS not accredited by the united
states department of veterans affairs and cannot assist with an appeal to the
board of veterans' appeals. This business is NOT SPONSORED BY,
ENDORSED BY OR AFFILIATED WITH THE Arizona DEPARTMENT OF VETERANS' SERVICES OR
the UNITED STATES DEPARTMENT OF VETERANS AFFAIRS or any other federally
chartered veterans' service organization. THE Arizona DEPARTMENT OF
VETERANS' SERVICES, the UNITED STATES DEPARTMENT OF VETERANS AFFAIRS, a local
veterans' service organization or a federally chartered veterans' service
organization MAY BE ABLE TO PROVIDE YOU WITH THIS SERVICE FREE OF CHARgE.
E. A person RECEIVING COMPENSATION
PURSUANT TO SUBSECTION B OF THIS SECTION shall always act in the INDIVIDUAL'S
best interest.
F. A person RECEIVING COMPENSATION
PURSUANT TO SUBSECTION B OF THIS SECTION may not do any of the following:
1. guarantee, 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.
2. Use predatory advertising
practices, including guaranteeing a successful outcome or an increase in
veterans' benefits.
3. employ a medical provider to
conduct a medical examination.
4. Use an international call center
or data center for processing a VETERAN'S personal information.
5. gain direct access to any
veteran's personal medical, financial or government benefits information.
6. Charge an up-front fee or a
nonrefundable fee for advising, consulting, assisting, guiding, coaching or
training an individual regarding a veterans' benefits matter. Any compensation
received pursuant to this section shall be contingent on the veteran's benefits
being increased. Compensation is capped at a onetime fee that is not more than
five times the monthly amount of the veteran's increase in benefits.
7. Contact the united states
department of veterans affairs
By impersonating the
individual or an accredited representative or by initiating contact with the
united states department of veterans affairs while falsely representing that
the person has authority to act on behalf of the individual.
8. Submit paperwork, forms, evidence
or any documentation to the united states department of veterans affairs or to
any governmental entity on behalf of the individual.
9. Receive, hold or exercise a power
of attorney to act on behalf of the individual in connection with a veterans'
benefits matter.
10. Represent or purport to represent
the individual in any communication, negotiation, hearing, review or proceeding
before the united states department of veterans affairs or any governmental
entity.
G. A violation of this section
constitutes an unlawful practice under section 44-1522. The attorney general
may investigate and take any appropriate action pursuant to title 44, chapter
10, article 7.
H. An individual who has contracted
with a person that operates pursuant to this section has a cause of action
against the person if the person fails to comply with this section.
I. this section does not apply to,
limit or expand the requirements imposed on agents, attorneys or other
representatives who are accredited and regulated by the United States
Department of Veterans Affairs.
J. For
the purposes of this section:
1. "Compensation"
means any money, item of value or economic benefit conferred on or received by
an INDIVIDUAL in return for services provided by a person.
2. "Higher level review"
means the de novo review of a claim that is reexamined by a higher level
reviewer.
3. "Initial claim" has the
same meaning PRESCRIBED in 38 code of federal REGULATIONS section 3.1.
4. "
Person"
includes any corporation, trust, partnership, INCORPORATED or UNINCORPORATED
association or other legal entity.
5. "Supplemental claim" has
the same meaning PRESCRIBED in 38 code of federal regulations section 3.1.
6. "veterans' benefits
matter" means any benefit, program, service, commodity, function or status
the entitlement to which is determined by the department of veterans' services
or the United States department of veterans affairs pertaining to veterans,
their dependents, their survivors and any other individual eligible for such
benefits.
END_STATUTE