veterans' benefits; claims; prohibition

Plain English Breakdown

The bill text does not specify enforcement mechanisms or penalties for violations.

Veterans Benefits; Claims Prohibition

This bill sets rules about who can help veterans with benefits claims and limits how much money people can get for helping.

What This Bill Does

• It stops anyone from acting as an agent or lawyer to help veterans with benefit claims unless they are recognized by the U.S. Department of Veterans Affairs (VA).
• It says that someone who is not a VA-recognized agent or lawyer cannot receive money for referring veterans to others for advice on benefits.
• It allows people to get paid only if they advise, consult, guide, coach, or train veterans about initial claims, supplemental claims, or higher level reviews.
• Before getting paid, the person must sign a written agreement with clear terms and a cancellation period, and disclose that their business is not sponsored by VA or state agencies.
• It requires people to act in the veteran's best interest when helping them with benefits matters.

Who It Names or Affects

• Veterans who seek help with benefit claims.
• People who offer services to veterans for a fee.
• The Arizona Department of Veterans' Services (ADVS) and U.S. Department of Veterans Affairs (VA).

Terms To Know

Compensation

Money or other value given in return for services.

Veterans' benefits matter

Any benefit, program, service, commodity, function, or status determined by the VA or ADVS for veterans and their families.

Limits and Unknowns

• The bill does not affect accredited agents or attorneys who are already recognized by the U.S. Department of Veterans Affairs.
• It is unclear how this will be enforced and what penalties might apply to violators.

Official Summary Text

SB1803 - 572R - Senate Fact Sheet

Assigned to
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COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
S.B. 1803

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

Current 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