I write in opposition to HB398 (the SAVE Act). A federal district court in Louisiana recently held that a law with the same provisions contained in HB398 violate the U.S. Constitution’s Supremacy Clause and First Amendment (decision attached for your review). HB398 will incur significant litigation risk and, if passed, will be detrimental to the interests of veterans. The SAVE Act is one of several legislative initiatives across state legislatures lobbied for by the unaccredited VA claims consultant industry (i.e. “claim sharks”). Federal law requires that any individual seeking to assist veterans with preparing benefits claims must receive “accreditation” from the U.S. Department of Veterans Affairs. Because this federal prohibition does not carry a criminal penalty, claim sharks have begun to operate without accreditation. The SAVE Act attempts to normalize this practice by authorizing unaccredited claim sharks practice under state law. However, as mentioned above and discussed below, virtually identical legislation in Louisiana has been invalidated by a federal court. (Louisiana’s legislation is known as the PLUS Act.) In the attached decision, the U.S. District Court for the Middle District of Louisiana held that the PLUS Act violated the U.S. Constitution’s Supremacy Clause and First Amendment on the following grounds: Violation of the Supremacy Clause: “The Court thus finds that the [PLUS] Act, by placing significant restrictions on the services offered by [VA accredited attorneys and agents] and others similarly situated, sufficiently obstructs Congress’s intent that veterans have access to authorized, qualified private representatives to assist them in pursuing claims for VA benefits . . . The [PLUS] Act is preempted by its conflict with federal law.” (p. 21-2). Violation of the First Amendment: The Court held that the PLUS Act compels commercial speech by properly accredited claims agents and attorneys that could discourage veterans from employing their services. By doing so, “the [PLUS] Act violates Plaintiffs’ rights under the First Amendment and is therefore unconstitutional as applied to Plaintiffs.” (p. 17-18). Because the SAVE Act is virtually identical to the PLUS Act, there is a significant likelihood that the SAVE Act before you is unconstitutional and incurs litigation risk. The next question is whether that litigation risk is worth serving the purpose of the bill. The answer is no. Joint investigative reporting by NPR and War Horse News has shown that unaccredited claim sharks engage in unscrupulous practices to extract profit from disabled veterans. For example, one organization uses veterans' social security numbers to obtain their claim information without their knowledge to determine if they have received additional benefits and demand payment if so. As noted by Virginia’s Joint Leadership Council of Veterans Service Organizations, the best alternative to this legislation is to simply prohibit unaccredited claims practice. Several states, including Utah, Illinois, and New York have taken this approach. Delegate Cheryl Laufer’s HB1268 would have done so but was regrettably continued until 2027. In short, the SAVE Act is likely to be invalidated by a federal court and would ultimately expose disabled veterans to proven predatory actors. HB398 should be defeated.

Statement in Opposition to HB 398

My name is Donyale Hall. I am a U.S. Air Force Gulf War–era disabled veteran, a military mother, and a Delaware councilwoman. I strongly support HB 398. My father grew up in rural Floyd County, Virginia, joined the Air Force at 18, and served this country for 26 years, retiring as a master sergeant. After his service, he spent years trying to secure the VA disability benefits he earned. He never succeeded. He passed away while still fighting the system. That experience is not unique. The VA claims process is complex and unforgiving. A single mistake can lead to denial, and appeals can take years. Veterans know this. That is why many seek professional help to get their claims right the first time. HB 398 protects veterans’ right to choose who helps them. Professional benefits consultants often provide critical assistance, especially for disabled, rural, and elderly veterans who cannot navigate the system alone. Many of these professionals are veterans themselves, trained to guide others through a high-stakes process. Eliminating these options does not protect veterans. It leaves them with fewer resources, longer delays, and higher denial rates. Volunteers and VSOs do important work, but they are often overburdened and not accessible to every veteran who needs help. HB 398 takes the right approach. It preserves access, respects veteran autonomy, and allows accountability without punishing veterans who simply want help securing the benefits they earned. Virginia should not make the VA claims process harder for veterans. HB 398 makes it fairer. I respectfully urge your support.

Donyale Hall is a businesswoman, mother and a Gulf War Era Veteran of the United States Air Force. She moved to Dover in 1973, when her father was assigned to Dover Air Force Base. Donyale is a 1987 graduate of Caesar Rodney High School and has raised her own family here. Of her ten children, five are CR graduates. Three are graduates of the Early College High School at Delaware State University. The youngest two are currently middle schoolers. Two sons proudly carry on the family legacy of military service as members of the United States Air Force and Navy. As a child, Donyale had dreams of becoming an architect. The idea of designing and building things has always had great appeal to her. Although her education and career path took Donyale in an entirely different direction, her creative and problem-solving approach to life served her well, “building” in other meaningful ways.

I am writing to discuss HB 398 the claim sharks bill. Many politicians in public proudly proclaim how much they love veterans, and how they would do anything for our beloved veterans. Your job as legislators is to protect those who are unable to protect themselves and look out for the best interest's of your constituents. This is a time for you to prove that your words are truly actionable and not just words. Claim sharks like their compadres in the ocean, are predators. They prey on the weak and the vulnerable. Many veterans do not have the ability to understand and navigate the complex VA disability system. It is confusing and some cases contradictory. That is why the state of Virginia and national veterans organizations have accredited claims professional who have the ability and training to navigate this system for the veteran and do not charge a fee for their services. To allow claim sharks to feast on veterans who believe they have no choice to pay absurd sums and surrender hard earned relief for injuries received in war, are not only cowardly, but a stain on our state for allowing it to happen. If you truly care about veterans and are not just posturing for votes, you will ban claim sharks in Virginia and do your duty to protect those who need protecting. Thank you for your time and consideration on this matter. LTC(R) Mark P. Maggio SR Vice Commander, Dept of Virginia Veterans of Foreign Wars.

I rise against HB 398. Passing this bill, will go against everything we represent as a Veteran Service Organization, who Look out for Veterans, and their Families. Virginia’s veterans have long relied on accredited Veterans Service Organizations (VSOs) to assist them in navigating the complex landscape of VA claims and benefits. These organizations, staffed by trained, accredited representatives, provide their services at no cost to the veteran. Their mission is rooted in advocacy, accuracy, and protection of veterans’ rights. HB-398 in the Commonwealth has raised serious concerns among veteran advocates, service organizations, and community leaders. The bill in question opens the door for unaccredited, for‑profit companies, often referred to as claim sharks, to operate more freely in Virginia. These companies charge veterans substantial fees to access services that are otherwise free and federally protected. Unaccredited Actors Undermine Federal Protections. Federal law explicitly limits who may legally assist veterans with filing, preparing, or managing VA claims. Accreditation exists to ensure veterans receive qualified, ethical, and regulated representation. Unaccredited entities bypass these safeguards, creating a system where veterans may unknowingly entrust their benefits to individuals or companies without oversight, accountability, or standards of care. Veterans Could Lose $7,500–$20,000 in Earned Benefits. VSOs provide representation at no cost. Claim sharks, by contrast, typically charge a percentage of a veteran’s past‑due benefits, often amounting to $7,500 to $20,000, money that rightfully belongs to the veteran. These fees can cause severe financial strain, especially for veterans with disabilities or those on fixed incomes. Misrepresentation Risks Are High. VSOs undergo rigorous training and are held to strict federal standards. Where in contrast for‑profit entities: Are not accredited, are not recognized by the VA, often use misleading marketing and frequently provide inaccurate or incomplete claims guidance. Virginia is home to one of the largest concentrations of veterans in the country, including tens of thousands in the Hampton Roads region. Any legislation that eases access for unregulated companies poses a disproportionate risk to a population that already faces unique bureaucratic and health‑related challenges. Local VSOs fear that the bill inadvertently legitimizes companies that exploit veterans financially, provide substandard guidance, and erode the integrity of the accredited claims process. Veteran leaders have voiced concern that many service members may not realize they are paying for something they can receive, legally and correctly, for free. Virginia’s veterans deserve legislation that strengthens, not weakens, the systems in place to safeguard their benefits. Policymakers, veterans, and community organizations should work together to: promote accredited VSOs and educate veterans about free resources, combat deceptive practices by for‑profit claims companies, ensure state laws do not contradict federal veteran protections, and advocate for strict standards to prevent exploitation. Protecting veterans means ensuring they are not financially preyed upon while seeking the benefits they earned through service to our country. Thank you Troy Wagers Commander Dept. Of Virginia Dist 2