Summary — HB 1169 (North Dakota) — Compensation for advising on veterans' benefits; penalty
Status (as provided)
- Introduced: November 12, 2024
- Committee action: Senate Agriculture & Veterans Affairs Committee adopted proposed amendments (Mar 20, 2025)
- Latest status (provided): Second reading — failed to pass (yeas 34, nays 60)
Purpose and intent
- To regulate private persons or businesses who charge for advising or assisting veterans (or their dependents/survivors) on claims and appeals for benefits administered by the U.S. Department of Veterans Affairs (VA) or Department of Defense.
- To protect veterans from deceptive, excessive, or otherwise abusive fee practices and to require clear written disclosures and consumer safeguards.
- To authorize civil enforcement (treatment as an unlawful practice) and civil penalties under the state consumer protection law.
Key provisions
- Definitions: “Compensation” = any payment or thing of value; “veterans’ benefits matter” = preparation, presentation, or prosecution of VA/DoD claims or appeals for veterans, dependents, survivors, or other eligible individuals.
- Prohibitions (Section 2):
- No compensation may be received for merely referring a veteran to another person to advise or assist on a veterans’ benefits matter.
- No guarantees (explicit or implied) of obtaining a specific benefit, percentage, or amount.
- No charging of “excessive or unreasonable” fees.
- Written agreement and disclosure:
- All fee terms must be memorialized in a written agreement.
- At the outset the provider must give a specific disclosure (sample language in the bill) stating the business is not sponsored by/affiliated with the VA, state department of veterans’ affairs, or federally chartered veterans’ service organizations; that free services may be available from those organizations; and that the veteran may qualify for other benefits.
- The disclosure must be in at least 12‑point font, located in an easily identifiable place in the agreement, signed by the veteran, and retained by the provider while services are provided and for at least one year after termination.
- Limits on fees and practices for initial claims (applies when charging for assistance with an initial claim):
- No compensation may be taken for services related to a claim filed during the one‑year presumptive period after active duty release, unless the veteran signs a waiver acknowledging the period and declining free services.
- Fees must be purely contingent on an increase in benefits awarded and may not exceed five times the amount of the monthly benefits awarded.
- Prohibits initial or nonrefundable fees.
- Prohibits use of international call or data centers to process veterans’ personal information.
- Prohibits use of a veteran’s personal login/credentials to access their medical/benefit information.
- Requires a background check (identity verification and criminal records check) before allowing an individual access to a veteran’s medical or financial information.
- Exemptions: Does not apply to attorneys, agents, or representatives accredited and regulated by the VA.
- Enforcement/penalty: A violation is an unlawful practice under ND § 51‑15‑02 and is subject to civil penalties under ND § 51‑15‑11 (consumer protection enforcement regime).
Who is affected
- For‑profit businesses, individuals, or nonprofits that charge veterans (or their dependents/survivors) for assistance with VA/DoD claims or appeals (including claims preparers, private contractors, and consultants).
- Veterans, dependents, and survivors seeking help with claims — will receive stronger disclosure and fee protections.
- VA‑accredited representatives and attorneys are exempt from these new restrictions (their existing rules remain governed by federal accreditation/regulation).
Potential impact
- Intended to reduce predatory fee practices, increase transparency, and protect veterans’ personal data.
- May restrict certain business practices in the veterans’ benefits assistance market (e.g., upfront fees, international outsourcing of personal data, use of veteran credentials).
- Creates a civil enforcement path through existing consumer protection statute; potential civil penalties for violators.
Procedural/timeline notes
- Bill text (as reported out of committee) includes specific disclosure language, fee limits, and operational requirements (background checks, record retention).
- According to the supplied status, the measure did not advance on second reading (vote: yeas 34 — nays 60). If reintroduced or amended, future action would depend on subsequent legislative scheduling and votes.
