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Committee advances bill to curb "benefits claim sharks" while members debate unintended consequences
Summary
Lawmakers advanced HB 6874 to the floor to create state protections against companies that charge veterans large fees to help file or pursue veterans benefits claims; lawmakers debated whether the measure would unintentionally restrict helpful private advocates and asked for clearer enforcement language.
The Veterans and Military Affairs Committee voted March 11 to send HB 6874, a bill establishing protections for veterans from so-called “benefits claim sharks,” out of committee for further consideration.
The legislation aims to close a perceived enforcement gap by penalizing entities that charge veterans excessive or deceptive fees to help them pursue federal veterans benefits. Sponsors said the bill would give the attorney general clearer authority to pursue bad actors and make such practices a violation of the state’s consumer protection framework.
Committee members voiced two central concerns. Some urged stricter enforcement against fraudsters who target older or vulnerable veterans; Senator Flexer recounted his personal experience with his father’s lengthy battle to secure disability benefits and said state-level protections are needed because federal enforcement has been insufficient. Others warned the bill could sweep up legitimate private advocates and nonprofit organizations that transparently charge fees or provide paid assistance, and they urged refining the bill so it does not impede veterans seeking help.
Lawmakers reported that revised committee language removes a blanket prohibition on fees and instead ties permissible compensation to federal certification and clearer standards. Representative Vale, who opposed the bill as drafted, said restricting private advocates could reduce veterans’ access to help in communities without municipal veteran-service officers. Senator Austin said she would vote to move the bill out of committee but urged additional, targeted revisions before any floor vote.
Committee members said they will continue work with leadership and stakeholder groups to refine enforcement language and carve-outs so the measure targets bad actors without deterring legitimate assistance. The clerk conducted a roll-call; the committee recorded votes in favor and left votes open for the remainder of the day as the bill moves toward floor consideration.
