Kentucky Senate committee hears bill to regulate paid veterans claims consultants; no vote taken

Senator David Yates, sponsor of a bill addressing paid veterans' claims consultants, told a Kentucky Senate committee in Frankfort on Oct. 27, 2025, that the measure is intended "to protect veterans" and to require clearer written disclosures when for‑profit consultants help veterans file claims.

The bill, introduced to a standing committee and discussed at a public hearing, would require consultants who charge veterans for claims assistance to disclose in writing their fees, whether they are accredited, and that they are not affiliated with the U.S. Department of Veterans Affairs or veterans service organizations. Yates said the draft previously considered limits on fees expressed as multiples of monthly benefits (initially five times, then three times) and said the goal is to create "guardrails" without imposing a blanket ban on for‑profit assistance.

The bill matters because veterans and advocates described a mix of outcomes from private consultants and nonprofit veterans service organizations (VSOs). "This is really about protecting veterans," Senator David Yates said during his presentation. He described instances where veterans had been harmed by what he called "bad actors" and said the committee should craft clear, transparent rules. Chair Deneen told the committee the measure would be handled so amendments could be circulated to members and interested parties before a vote, and that the committee may reconvene to continue the discussion.

Speakers at the hearing included representatives of major veterans groups and private firms. James Tebbe, identified as legislative chairman for the Department of Kentucky Veterans of Foreign Wars and a City of Covington commissioner, said the bill "at its current state violates the code of federal regulations, which prohibits charging a veteran a fee for filing their initial claim," and urged the committee to align state law with federal rules (transcript reference: "38 CFR 14 6 3 6"). He recommended rejecting the current draft unless it explicitly prevents fees for initial claims and adds enforceable penalties for bad actors.

Mark Christiansen, chief of staff for Veterans Guardian, a private consulting firm, said Kentucky has "only 71 VSO representatives to service over 272,000 veterans in the state" and argued veterans need additional options. Christiansen described his organization as a large, ethical actor in the market and asked the legislature to consider a fee cap expressed as a dollar amount, limits on late fees and interest on payment plans, and other consumer protections while preserving veterans' choice.

Daryl Casey, legislative chairman for the Joint Executive Committee of Veteran Organizations (JECVo) and a VSO service officer, said VSOs do not charge and asked for a "level playing field" so that nonattorney paid consultants face fee limits similar to attorneys. "We just want the playing field to be leveled," Casey said, adding that VSOs exist to ensure veterans receive accredited assistance.

Senator Reed expressed support for preserving choice for veterans and urged committee members to work toward a compromise over the next days. Chair Deneen emphasized transparency in the amendment process and said the bill would likely return with committee substitutions; no vote was taken at the hearing.

The committee recorded no formal motions or votes on the bill during this session. Senators and witnesses repeatedly urged the sponsor and staff to circulate proposed amendments and to consult with VSOs and other stakeholders before the next meeting, which Chair Deneen said may be scheduled early the following week. The committee adjourned after completing the hearing and public testimony.

Notes and next steps: the sponsor and committee said they will develop and circulate committee amendments for review by members and interested organizations, and the committee may reconvene for further testimony and consideration before any final action is taken.