The committee substitute for Senate Bill 658 would limit when a person may receive compensation for assisting veterans with Department of Veterans Affairs benefit claims, require written fee agreements to be filed with the VA before fees are paid, and make certain violations subject to the West Virginia Consumer Credit and Protection Act.

Committee counsel summarized the substitute as generally prohibiting compensation for services rendered in connection with a veteran’s benefits matter except as allowed by federal law. Counsel said the substitute would bar certain practices that have drawn complaints: receiving compensation for referring a veteran to a third party, receiving payment for services rendered before the VA acts on a claim, guaranteeing veterans a specific outcome, charging excessive or unreasonable fees (with excessiveness defined by federal guidelines), and collecting contingent fees for providing medical evidence or expert testimony that are not agreed in advance.

Three witnesses testified. James A. Dodrill, retired Air Force and co‑chair of the State Bar Committee on Veterans and Military Affairs, told the panel he had assisted veterans and said he encountered companies he described as “claim sharks” that charge substantially higher fees than accredited representatives and sometimes misrepresent that they submit claims on veterans’ behalf. Dodrill said such firms can take ‘‘five times the amount of the monthly increase’’ from a veteran’s back pay and cited materials estimating large sums taken from veterans nationally.

Chris Hall, representing Veterans Guardian VA Claim Consulting, told the committee not all private claims consultants are bad actors and argued the private sector provides an option when accredited representatives are unavailable; he said Veterans Guardian discloses in writing that free services exist, that Veterans Guardian is not accredited by the VA and is not affiliated with the VA, and that it does not take a portion of back pay. He urged maintaining a private-sector option while strengthening consumer protections such as disclosures, background checks and contingent-fee limits.

Ryan Kennedy, cabinet secretary for the West Virginia Department of Veterans Assistance, told the committee the department operates 38 accredited veterans service officers (VSOs) in 15 offices around the state who provide free, accredited assistance and can be disciplined by the VA Office of General Counsel. Kennedy said accreditation provides an enforcement mechanism absent for unaccredited actors and that about 40% of representation complaints to the VA involve unaccredited individuals.

The committee agreed to the committee substitute on a voice vote. The junior senator from the fifth then moved that the committee substitute be reported to the full Senate with a recommendation that it pass; the motion passed by voice vote. Committee members said they would consult with the Finance Committee chair where required and noted the substitute removed some disclosure language that had been present in the introduced version.