Senate advances bill to regulate veteran-claims consultants, set fee caps and penalties

Senate Bill 198, sponsored by Senator David Yates, was considered and advanced by the Senate VMAP Committee after the committee adopted a committee substitute. The substitute adds definitions for consulting agents, requires accreditation for entities seeking compensation for veteran-claims services, empowers the attorney general to enforce penalties, and directs that penalty funds be deposited into a special license plate fund to “support veterans.”

Senator David Yates said the bill is intended to protect veterans from for‑profit consultants who charge fees for filing disability claims with the U.S. Department of Veterans Affairs but, in some cases, neither are accredited by the VA nor subject to penalties under current federal enforcement. “Our veterans deserve the benefits in which they're entitled to,” Yates said, describing examples of what he called “horrific abuses” by bad actors in the consulting market.

The committee substitute sets a fee cap tied to benefits obtained: a consultant may not charge more than three times the monthly increase in benefits awarded to the veteran, and in any event may not charge more than $11,000 (the lesser of the two limits applies). Yates said the three-times rule and the $11,000 cap are intended as layered guardrails: federal regulations (where applicable) are the first protection, the three-times cap is a second, and the $11,000 cap is a final limit should other safeguards fail.

The committee heard public testimony in support from veteran organizations. Bob Kasher, chairman of the Joint Executive Council of Veteran Organizations (JECVo), told the committee: “There is no reason that any veteran should be charged for claim assistance. Let's pass this bill and put some barriers on consulting companies.” Daryl Casey, legislative chairman for JECVo, said volunteer veteran-service organizations provide free assistance and urged lawmakers to level the playing field for veterans seeking claims help.

Committee members discussed how the fee caps would affect legitimate businesses that provide claims assistance. Senator Nunn noted a prior witness suggested a five-month cap would be more appropriate for business viability; Senator Yates and other sponsors said they settled on three months based on conversations with veterans and to keep more money with veterans. Senator Higdon asked why $11,000 was used as a backstop; Yates said the figure was chosen after reviewing other claims and prior proposals and as an upper-limit contingency.

Committee members voted to hold a roll call after public comment and then adopted a title amendment. The committee recorded unanimous support and reported the bill favorably; sponsors said the bill would be monitored for unintended consequences and that they had consulted with veteran organizations while drafting the measure.