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Committee rejects bill to regulate private companies that help veterans file VA claims
Summary
Lawmakers declined to advance House Bill 12‑33 after a lengthy hearing in which sponsors urged consumer protections for veterans and opponents, including veterans service organizations and accredited attorneys, said the proposal conflicts with federal rules about who may prepare VA claims.
The House State, Civic, Military and Veterans Affairs Committee voted to postpone indefinitely House Bill 12‑33, a measure that would have placed state-level “guardrails” on for‑profit companies that assist veterans who file their own disability claims with the U.S. Department of Veterans Affairs (VA).
The measure’s sponsors, Representative (Rep.) Richardson and Rep. Carter, said the bill was intended to protect veterans who choose private help while preserving free options and accredited representation. “This bill ensures that veterans can have access to private for‑profit support if that's the route they choose. But it also ensures they're protected from bad actors if they may exist,” Richardson said.
Supporters said the bill would limit fees, require clearer disclosures, set minimum data‑security and training requirements for companies, and ban certain compensation practices. The text put a cap on contingency compensation tied to a five‑month…
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