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SB 928

Veterans Benefits Matters – Claim Servicers – Prohibitions and Requirements

2025 Regular Session Introduced by Will Smith

SB 928 restricts non-VA-accredited helpers from handling veterans benefits; requires written fee agreements and directs penalties to the Maryland Veterans Trust Fund, via MCPA enforcement.

Hearing 2/27 at 1:00 p.m.
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Bill Summary · SB 928

Summary — SB 928: Veterans Benefits Matters — Claim Servicers — Prohibitions and Requirements

Status: Hearing scheduled Feb. 27, 2025 (Finance committee)
Introduced: January 2025
Effective date (as in bill): October 1, 2025

Purpose
- To protect veterans and claimants by restricting paid, for‑profit assistance in veterans benefits claims to persons who are accredited by the U.S. Department of Veterans Affairs (VA), and to establish enforcement and penalty mechanisms for violations.

Key provisions
- Definitions
- “Compensation” = payment of money, thing of value, or financial benefit.
- “V.A. accredited” = authorized under federal rules (38 C.F.R. § 14.629).
- “Veterans benefits matter” = any claim or appeal regarding VA or DoD benefits for veterans, dependents, survivors, or eligible individuals.

  • Prohibitions (persons who are NOT VA‑accredited may not):

    • Receive compensation for preparing, presenting, or prosecuting a veterans benefits matter.
    • Receive compensation for advising, consulting, or otherwise assisting an individual with a veterans benefits matter.
    • Receive compensation for referring a claimant to another person for services relating to a veterans benefits matter.
    • Guarantee (directly or implied) that a claimant will receive specific benefits or a specific level/amount/percentage of benefits.

  • Fee rules and agreements

    • Prohibits “excessive or unreasonable” fees; fee reasonableness is to be determined consistent with 38 C.F.R. § 14.636(e).
    • A person seeking compensation must enter into a written fee agreement, signed by both parties, that complies with criteria in 38 C.F.R. § 14.636, before rendering services.

  • Enforcement and remedies

    • Violations are classified as unfair, abusive, or deceptive trade practices under the Maryland Consumer Protection Act (MCPA).
    • Enforcement and penalties follow MCPA procedures and sanctions (civil and criminal remedies available under MCPA).
    • Any civil or administrative penalties recovered by the Attorney General must be deposited in the Maryland Veterans Trust Fund (MVTF).

  • Repeals and replacements

    • Existing statutory advertising and disclosure requirements for paid veterans benefits services/appeals services are repealed and replaced by the bill’s accreditation, fee, and enforcement framework.

Who is affected
- Veterans, beneficiaries, dependents, survivors and other claimants (improved consumer protections).
- Non‑accredited paid preparers, referral services, or for‑profit organizations that charge for veterans benefits assistance (subject to prohibition and penalties).
- Accredited attorneys, agents, and veterans service organizations (VA‑accredited representatives retain ability to receive fees under federal rules).
- State agencies: Office of the Attorney General (enforcement), Maryland Department of Veterans and Military Families (existing free, accredited services remain available).

Fiscal and administrative impact
- Department of Veterans and Military Families (DVMF) and Office of the Attorney General (OAG) can implement administrative changes with existing budgeted resources.
- Penalty revenues (if collected) will increase MVTF receipts beginning FY 2026.
- Small business impact: assessed as minimal in the fiscal analysis.

Relevant federal law
- Fee reasonableness and accreditation references point to federal VA regulations, notably 38 C.F.R. §§ 14.629 and 14.636, which already govern accredited representatives and allowable fees.

Bottom line
- SB 928 tightens consumer protections for veterans by limiting who may charge for assistance with VA/DoD benefits to VA‑accredited persons, requires written fee agreements consistent with federal rules, and routes penalties to the Maryland Veterans Trust Fund with enforcement under the MCPA.

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

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