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Lawmakers weigh bill to regulate paid veteran‑claims agents amid debate over accreditation
Summary
House Bill 1169 would restrict practices by private companies that charge veterans fees for preparing VA disability claims and require alignment with federal accreditation standards. Supporters said it protects veterans from predatory actors; critics warned the current draft could limit veterans’ choice or conflict with federal rules.
BISMARCK, N.D. — The Senate Agriculture and Veterans Affairs Committee took up House Bill 1169 on Friday, a proposal aimed at curbing predatory practices by some private entities that help veterans with Department of Veterans Affairs disability claims.
Representative Jeremy Olsen, sponsor and co‑chair of the Veterans Caucus, told the committee the bill’s purpose is to protect disabled veterans from excessive fees, misuse of private information and false promises, while preserving veterans’ freedom to choose paid or free assistance. “There are respectful organizations who truly do good work to help our disabled veterans,” Olsen said, “but this bill aims to shield veterans from unethical practices.”
The hearing split witnesses. Supporters included county veteran service officers, veteran‑service organizations and private firms offering paid claim‑preparation services. Peter O’Rourke, former acting secretary of the U.S. Department of Veterans Affairs, described the evolution of the fully‑developed claim pathway and said the file‑preparation market now includes legitimate paid providers and some bad actors. William Taylor, CEO of Veterans Guardian VA Claims Consulting, said his firm obtains decisions faster and increases monthly benefit awards for many clients; he said 87% of his North Dakota clients had tried a VSO before hiring his company.
State Veterans Affairs Commissioner Lonnie Wallen said the department does not oppose reasonable regulations but urged the committee to preserve federal accreditation requirements. Wallen and several county and tribal veteran‑service officers told the committee that accredited representatives and VSOs provide free services and that federal rules limit who may act as an accredited agent or attorney for VA claims. Multiple witnesses said federal law limits fees that agents and attorneys may charge and requires recognition by the VA Office of General Counsel.
Opponents, including the Disabled American Veterans and veterans’ service organizations, cautioned that the current draft removed a specific clause — “except as allowed under federal law” — that would have explicitly required claim agents and fee‑charging representatives to comply with federal accreditation rules; several groups urged restoring that language. They said the deletion could allow out‑of‑state fee‑charging entities to operate in North Dakota without federal recognition and could expose veterans to financial exploitation.
Committee members asked about existing federal rules, how accreditation works, and whether the bill would reduce access for veterans who use paid services to speed claims. No committee vote was recorded at the hearing.
