Arizona committee advances bill to impose disclosure, fee caps on non‑accredited veterans‑claim helpers

The Senate Military Affairs and Border Security Committee advanced Senate Bill 18‑03 on Feb. 26, 2026, sending the measure to the floor with a 5‑2 do‑pass recommendation after adopting a three‑page amendment requiring a signed disclosure line.

Sponsor testimony described the proposal as a consumer‑protection bill to prevent predatory advertising and upfront, nonrefundable fees by people who are not federally accredited to prepare or prosecute veterans benefits claims. The bill would make it unlawful for an unaccredited person to act as an agent or attorney for claims and would allow non‑agents to be paid only for advising, coaching or training if they file a standard fee agreement with the Attorney General’s office, include a three‑day cancellation without penalty, and make a prescribed disclosure that they are not affiliated with free VA‑accredited services. The draft caps contingency compensation at a one‑time fee of up to five times the monthly increase in benefits for a successful claim.

VA‑accredited attorney Derek Debas, who signed in neutral, said a similar Louisiana law was struck down for intruding on a federally administered regime and urged clearer definitions to avoid unlicensed practice of law. He urged venue protections to prevent some companies from forcing veterans to litigate in offshore jurisdictions. The state commander of the Veterans of Foreign Wars said the VFW supports requiring VA accreditation for anyone filing or prosecuting claims and asked the committee not to pass the bill in its current form.

Proponents and some veterans testified that many veterans lack timely access to accredited veteran service officers (VSOs) and value private options if they are transparent. Mark Christiansen of Veterans Guardian described a contingent fee model capped by the bill and said his organization helps thousands of Arizona veterans; Lynn Holzner, a retired Navy veteran, said the bill’s "guardrails" would let veterans make safer choices. Opponents urged strengthening guardrails, and some raised federal preemption risks, while proponents stressed the bill includes carve‑outs for federally accredited agents and attorneys.

The committee adopted the Gowen amendment requiring a disclosure line to be initialed by the veteran, and voted to give SB 18‑03 as amended a do‑pass recommendation to the Senate floor, 5 ayes to 2 noes. The Attorney General retains investigatory authority for unlawful practices under the bill.

Next steps: SB 18‑03 will be scheduled for consideration on the Senate floor, where sponsors and critics said further amendments remain possible.