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HF 3216

Certain practices by service providers restricted.

2025-2026 Regular Session Introduced by Bjorn Olson

HF 3216 restricts compensation and referral practices for veterans benefits services, requires written terms, protects veterans’ data, and prevents guarantees of specific outcomes.

Introduction and first reading, referred to Veterans and Military Affairs Division
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Bill Summary · HF 3216

Summary of HF 3216 (2025-2026) – Minnesota

Purpose and intent

HF 3216 seeks to regulate and restrict certain practices by service providers who assist veterans with benefits and veteran benefits appeal services. The bill aims to reduce abusive or misleading referral arrangements, limit compensation practices, protect veterans’ personal information, and ensure transparency in contractual terms before services are rendered.

Key provisions and changes

Definitions (Section 1)

  • Clarifies terms related to veterans benefits services:
    • “Advertising” is defined to include written communications soliciting business for veterans benefits appeal services, directory listings, and electronic solicitations. Exemptions apply to identifying marks on buildings, uniforms, or routine business communications not aimed at soliciting benefits services.
    • Adds/updates terms:
    • “Compensation” means any money or economic benefit received for services.
    • “Veterans benefits appeal services” covers services to appeal federal or state veterans benefits denials (disability, education, home loan, burial, dependent and survivor benefits, etc.).
    • “Veterans benefits services” covers services used to obtain federal, state, or county veterans benefits.
    • References a “written disclosure statement” as developed by the commissioner of veterans affairs.

Limitation on compensation (Section 2, Subd. 3a)

Elaborates specific prohibitions and conditions related to compensation for veterans benefits services:

  • (a) Prohibition on referral compensation: No person may be compensated for referring an individual to another person for veterans benefits services or veterans benefits appeal services.
  • (b) Prohibition during presumptive period: No compensation for services in claims filed within the one-year presumptive period after active duty release, unless the veteran signs a waiver acknowledging eligibility for free services and opts to decline them.
  • (c) Written agreement and cap on total compensation: Before services, parties must memorialize terms of compensation in a written agreement signed by both sides. Compensation must be contingent on an increase in benefits. Total compensation must not exceed five times the monthly increase in benefits awarded. No initial or nonrefundable fees may be charged.
  • (d) No guarantees on outcomes: Service providers may not promise guaranteed success or specific benefit amounts, directly or by implication.
  • (e) Safeguards on handling veteran data:
    • (1) Prohibits using international call centers or data centers to process a veteran’s personal information.
    • (2) Prohibits using a veteran’s login credentials to access medical, financial, or government benefits information.
    • (3) Requires background checks for any individual with access to a veteran’s medical or financial information, including identity verification and criminal records check, conducted by a reputable source.
  • (f) Non-implication with federal rules: The subdivision does not alter requirements for agents or representatives accredited by the U.S. Department of Veterans Affairs.

Who is affected

  • Service providers offering veterans benefits or veterans benefits appeal services in Minnesota.
  • Individuals seeking veterans benefits or appealing denials, who may interact with these service providers.
  • Entities involved in marketing or referring veterans services (due to the prohibition on referral compensation).
  • Veterans’ personal information handling and security practices (data access, handling, and screening requirements).

Procedural and timeline aspects

  • Status: Introduced in the 94th Legislature (HF 3216), referred to Veterans and Military Affairs, with Co-sponsor Bjorn Olson.
  • Effective dates and implementation details are not specified in the provided text; typically, statutes would establish an effective date and any required rulemaking or guidance by the commissioner of veterans affairs.

Potential impacts

  • Protection from referral-based compensation models that may create conflicts of interest or bias.
  • Increased transparency through written compensation agreements and caps tied to actual benefit increases.
  • Enhanced protections for veterans’ personal data, including prohibitions on international data processing and mandatory background checks for staff with access to sensitive information.
  • Clarification that these provisions are in addition to any federal accreditation standards and do not alter existing federal rules.

If you’d like, I can provide a side-by-side comparison with current Minnesota statutes or draft a plain-language explainer for veterans considering using such services.

Compiled from official sources — confirm details with the bill’s official record.

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