Minn. subcommittee advances bill to curb so‑called 'claim sharks' while debate continues over accreditation

A Minnesota Senate subcommittee voted 5‑4 on March 3 to pass and refer Senate File 18‑94, a bill aimed at restricting predatory paid assistance for veterans seeking federal VA benefits.

The bill, carried in the subcommittee by Sen. Putnam, would require anyone who provides veterans benefits services for compensation to be accredited by the U.S. Department of Veterans Affairs, provide a written fee agreement to clients, and prohibit providers from guaranteeing specific benefits. The bill also would add penalty provisions and make certain violations an unlawful practice under state consumer law.

Supporters in the hearing told the committee the changes update Minnesota’s 2017 disclosure statute to address “claim sharks” who they said charge veterans for poor or misleading services. John Kelly, director of government affairs for the Minnesota Department of Veterans Affairs, called SF 18‑94 “an important bill and a necessary one,” and said it mirrors portions of the governor’s budget bill. Kelly said the legislation does not bar veterans from paying for services, but would ensure paid providers meet federal accreditation requirements.

Ron Quatty, director of veteran services at MDVA, described the benefits of VA accreditation, including system access to the Veterans Benefits Management System and the ability to communicate directly with VA personnel. “Without this access, an individual cannot effectively represent a veteran’s claim,” Quatty said, and he listed federal standards of conduct that accredited representatives must follow.

Testimony split the room. Dr. Christy Janigo, legislative chair for the American Legion Department of Minnesota and an assistant county veteran service officer, said many accredited nonprofit VSOs provide free help to veterans and described the complexity of claims for homeless and justice‑involved veterans. “Veterans’ stories are sacred to me,” Janigo said, recounting work that, she said, helped end veteran homelessness in parts of Hennepin County.

Opponents urged caution before imposing accreditation rules that, they said, could reduce options for veterans. Ray Colas, representing Veteran Benefits Guide, and Ashley Berry, senior counselor at the National Association for Veterans’ Rights, both asked for amendments that would target predatory practices without removing private, paid options veterans may choose to use. “Protect veterans from predatory practices while preserving their right to seek help from qualified professionals,” Berry told the committee.

Several VA‑accredited attorneys expressed concern the bill’s language is overbroad or vague and could chill attorneys from representing Minnesota veterans. Brian Lewis, a VA‑accredited attorney, said some provisions could make it difficult for family‑law or other attorneys who touch veterans’ benefits issues to practice without unintended consequences. Ben Krause, another attorney, said his firm stopped taking paid veteran clients because of vagueness in current law.

Sen. Duckworth and others urged the subcommittee to pause and refine the language; Duckworth said the bill was introduced only days before the hearing and said stakeholders need more time to reconcile competing interests. Sen. Gustafson and other supporters said the problem of predatory actors has been studied for months and that accountability for paid providers is necessary to protect veterans’ resources.

The subcommittee approved the motion to pass and refer SF 18‑94 to the full committee; the roll call was recorded as 5 yes, 4 no. Committee members who spoke during the hearing included Sen. Putnam (bill author), Sen. Duckworth, Sen. Gustafson, Sen. Anderson and Sen. Wiesenberg.

Sen. Putnam said he expects more drafting work and additional meetings to refine definitions and address concerns before the bill moves to the judiciary committee. The Minnesota Department of Veterans Affairs said it has been consulting with the attorney general’s office about enforcement and is open to amendments.

Votes at a glance: the subcommittee recorded the motion to pass and refer SF 18‑94 as approved by a 5‑4 vote.

What the bill cites: testimony and witnesses referenced Minnesota statute governing veteran‑benefits disclosures (stat. 197.6091, enacted 2017), federal requirements for accreditation in Title 38 of the U.S. Code and implementing rules in 38 C.F.R. (including §14.636 on fee reasonableness).