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Committee advances bill to bar unaccredited, fee-based veterans-claims agents
Summary
The House Labor, Veterans and Military Affairs Committee voted 10-0 to give HB245 a due pass. The bill would prohibit unaccredited individuals or entities from charging veterans for preparing initial VA disability claims and extend state-level enforcement to prevent deceptive fee practices.
Chairwoman Gail Roybal Caballero and members of the House Labor, Veterans and Military Affairs Committee on Wednesday advanced House Bill 245, a bipartisan measure aimed at stopping unaccredited claims consultants from charging veterans fees for initial U.S. Department of Veterans Affairs disability claims. The committee voted to give the bill a due pass, 10-0.
The bill’s sponsors and veteran-service witnesses said the measure would protect veterans from deceptive marketing and fee arrangements by requiring that anyone who assists veterans with claims be accredited under VA rules or otherwise restricted from charging for initial claims. “The floodgates opened for unaccredited actors,” said Bob Carroll, vice chair of the Veterans and Military Families Caucus, describing the effect of a 2006 federal change that removed criminal penalties and, according to witnesses, invited unaccredited firms into the market.
Supporters told committee members the change is narrow: it targets paid assistance for preparing initial claims and aligns state enforcement with federal accreditation standards. Cynthia Archuleta, an accredited service officer and U.S. Marine Corps veteran, said accredited representatives provide free services and are subject to VA vetting: “We cannot accept gifts or money from veterans ever,” she said, adding that unaccredited companies should be required to obtain VA accreditation if they handle veterans’ personal information.
The bill drew opposition from private claims companies and trade groups that urged caution. Brian Johnson, executive vice president of Veterans Guardian, said, “Private claims companies do not act as agents or attorneys. We are not operating illegally,” and warned the bill could limit veteran choice. Ashley Berry, senior vice president of communications for the National Association for Veteran Rights, said HB245 is “well intended” but risks restricting access to assistance for some veterans and noted capacity concerns for accredited service organizations.
Witnesses and lawmakers debated two practical points the bill addresses. Committee members heard that accredited representatives and veteran-service organizations currently provide free initial-claim assistance in New Mexico and that federal law (cited in testimony as Title 38 of the U.S. Code and the Code of Federal Regulations governing VA accreditation) already bars unaccredited individuals from acting as claim agents before the VA. Proponents said state enforcement is needed because federal enforcement tools are limited; opponents noted legal challenges in other states where similar statutes were enacted.
Committee questioning clarified that HB245 would bar compensation for preparing initial claims but would permit fee-based representation after an initial claim is denied and the veteran pursues appeals with accredited representatives or attorneys; committee witnesses confirmed the bill’s language limits compensation for initial claims. Representative Vasquez asked and received confirmation from witnesses that accredited service organizations in New Mexico can typically schedule intakes and begin claim work within about a week and that, on average, an initial VA decision takes about 139 days once a claim is properly filed.
The committee adopted a motion for a due pass on HB245, moved by Representative Garcia and seconded by Representative Wanda Johnson. The formal tally announced by the chair was 10-0 in favor, moving the bill out of committee.
The measure includes references to federal law and VA accreditation requirements and proponents said the state would join several others that have enacted similar restrictions; opponents disputed the count of states and noted ongoing federal litigation in some jurisdictions. The bill does not change federal accreditation standards; it creates a state enforcement mechanism and prohibits fee-taking for initial claim preparation unless consistent with federal law.
The committee record shows extensive public testimony on both sides and questions from members about wait times, accreditation logistics, and whether the bill would restrict veteran choice. The vote advances the legislation to the next stage of the legislative process.
