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Senate passes bill capping private VA claims fees, imposing consumer protections for veterans
Summary
The Senate passed House Bill 12-38 to cap fees and impose consumer protections on private VA claims consultants; supporters called it consumer protection, opponents said certification and oversight concerns remain. Vote: 25-8, 2 excused.
The South Dakota Senate passed House Bill 12-38, a bill that caps fees and imposes consumer-protection requirements on private consultants who assist veterans with Department of Veterans Affairs claims. The final vote was 25 yeas, 8 nays and 2 excused.
Senator Sarah Howard, the bill sponsor in the Senate, described the measure as a consumer-protection bill that ‘‘caps fees to prevent excessive charges by private claims consultants,’’ prohibits upfront payments, makes fees contingent on successful outcomes, and bans deceptive solicitations. Howard said the bill also requires consultants to disclose free alternatives, obtain written consent before providing services and meet HIPAA-compliant data-security standards. The measure authorizes the Attorney General to seek a civil penalty of $5,000 per offense.
Opponents, led on the floor by Senator Zickmund, said many veterans’ organizations and an advisory veterans council opposed the bill because private consultants cannot currently be federally certified and that the bill could impose costs on veterans who choose to hire private assistance. Zickmund said existing Veterans Service Organizations (VSOs) provide similar assistance and that the lack of federal certification for private consultants is a central concern.
Senator Sarah Hulse, speaking from experience with veteran-serving institutions in her district, said the bill does not prevent veterans from hiring private consultants. Hulse said the bill ‘‘puts some protections in place’’ to limit predatory practices while preserving a veteran’s right to choose.
Senator Howard reiterated in closing remarks that the bill preserves a veteran’s constitutional right to petition the government while adding ‘‘common sense guardrails’’ to prevent predatory behavior. The Senate adopted the bill by roll call; the president declared House Bill 12-38 passed.
