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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0977*
HOUSE BILL 977
P1, I3 6lr2403
By: Delegate Allen
Introduced and read first time: February 6, 2026
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Veterans Benefits Matters – Claim Servicers – Requirements 2
FOR the purpose of requiring a person that is not V.A. accredited that is seeking 3
compensation for certain services related to veterans benefits matters to enter into 4
a certain written fee agreement with the recipient of the services that complies with 5
certain laws ; requiring the fee agreement to contain a certain notice; requiring a 6
certain notice to be given orally and acknowledged in writing; prohibiting the 7
imposition or collection of a certain fee under certain circumstances; providing for 8
the enforcement of certain provisions of this Act; repealing certain advertising and 9
disclosure requirements for veterans benefits services and veterans benefits appeals 10
services; and generally relating to veterans benefits matters. 11
BY repealing and reenacting, with amendments, 12
Article – Commercial Law 13
Section 13–301(14)(xlvii) 14
Annotated Code of Maryland 15
(2025 Replacement Volume) 16
BY repealing and reenacting, without amendments, 17
Article – Commercial Law 18
Section 13–301(14)(xlviii) and (15) 19
Annotated Code of Maryland 20
(2025 Replacement Volume) 21
BY adding to 22
Article – Commercial Law 23
Section 13–301(14)(xlix) 24
Annotated Code of Maryland 25
(2025 Replacement Volume) 26
BY repealing 27
2 HOUSE BILL 977
Article – State Government 1
Section 9–905.1 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2025 Supplement) 4
BY adding to 5
Article – State Government 6
Section 9–905.1 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2025 Supplement) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Commercial Law 12
13–301. 13
Unfair, abusive, or deceptive trade practices include any: 14
(14) Violation of a provision of: 15
(xlvii) Title 14, Subtitle 50 of this article; [or] 16
(xlviii) Section 13–411.1(c)(2) of the Transportation Article; or 17
(XLIX) EXCEPT AS PROVIDED IN § 9–905.1(E) OF THE STATE 18
GOVERNMENT ARTICLE, § 9–905.1 OF THE STATE GOVERNMENT ARTICLE; OR 19
(15) Act or omission that relates to a residential building and that is 20
chargeable as a misdemeanor under or otherwise violates a provision of the Energy 21
Conservation Building Standards Act, Title 7, Subtitle 4 of the Public Utilities Article. 22
Article – State Government 23
[9–905.1. 24
(a) (1) In this section the following words have the meanings indicated. 25
(2) “Advertisement” means: 26
(i) a written or printed communication made for the purpose of 27
soliciting business for veterans benefits appeals services; 28
(ii) a directory listing for a person that is offering veterans benefits 29
appeals services; or 30
HOUSE BILL 977 3
(iii) a radio, television, computer network or airwave, or electronic 1
transmission that solicits business for or promotes a person offering veterans benefits 2
appeals services. 3
(3) “Veterans benefits appeals services” means any services that a veteran 4
might reasonably require in order to appeal a denial of federal, state, or local veterans 5
benefits, including denials of disability, limited income, home loan, insuran ce, education 6
and training, health care, burial and memorial, and dependent and survivor benefits. 7
(4) “Veterans benefits services” means any services a veteran or a family 8
member of a veteran might reasonably use in order to obtain federal, state, or local veterans 9
benefits. 10
(b) (1) Before entering into an agreement with an individual for the provision 11
of veterans benefits services or veterans benefits appeals services, a person who charges a 12
fee for those services shall: 13
(i) provide a written disclosure statement to each individual; and 14
(ii) obtain the individual’s signature on the written disclosure 15
statement acknowledging that the individual understands the disclosure statement. 16
(2) The written disclosure statement shall: 17
(i) be on a form approved by the Secretary; and 18
(ii) state that veterans benefits services and veterans benefits 19
appeals services are offered at no cost by the Department and other veterans services 20
organizations accredited by the U.S. Department of Veterans Affairs. 21
(c) A person who charges a fee for providing veterans benefits appeals services 22
shall provide in any advertisement for appeals services notice that appeals services are also 23
offered at no cost by the Department and other veterans services organizations accredited 24
by the U.S. Department of Veterans Affairs. 25
(d) (1) A person who violates the provisions of this section is subject to a civil 26
penalty of not more than $1,000 for each violation. 27
(2) Civil penalties shall be in an amount order ed by the District Court in 28
an action brought by the Attorney General. 29
(3) Each day a violation continues is a separate violation. 30
(4) Any civil penalty collected shall be deposited in the Maryland Veterans 31
Trust Fund.] 32
9–905.1. 33
4 HOUSE BILL 977
(A) (1) IN THIS SE CTION THE FOLLOWING WORDS HAVE THE MEANI NGS 1
INDICATED. 2
(2) “COMPENSATION” MEANS PAYMENT OF MON EY, A THING OF 3
VALUE, OR AN ECONOMIC BENEFIT CONFERRED ON OR RECE IVED BY ANY PERSON 4
IN RETURN FOR SERVICES RENDERED OR TO BE RENDERED BY A PERSON. 5
(3) “V.A. ACCREDITED” MEANS AUTHORIZED BY THE U.S. 6
DEPARTMENT OF VETERANS AFFAIRS TO PROVIDE SERVICES IN ACCORDANCE WITH 7
38 C.F.R. § 14.629. 8
(4) “VETERANS BENEFITS MAT TER” MEANS A CLAIM OR AN APPEAL 9
AFFECTING AN INDIVID UAL WHO HAS FILED OR EXPRESSED AN INTENT TO FILE A 10
CLAIM FOR ANY BENEFIT, PROGRAM, SERVICE, COMMODITY, FUNCTION, OR STATUS 11
TO WHICH ENTITLEMENT IS DETERMINED UNDER THE LAWS AND REGULAT IONS 12
ADMINISTERED BY THE U.S. DEPARTMENT OF VETERANS AFFAIRS, THE U.S. 13
DEPARTMENT OF DEFENSE, OR THE MARYLAND DEPARTMENT OF VETERANS AND 14
MILITARY FAMILIES PERTAINING TO VETERA NS, THEIR DEPENDENTS , THEIR 15
SURVIVORS, AND ANY OTHER INDIVIDUAL ELIGIBLE FOR SUCH BENEFITS. 16
(B) (1) A PERSON THAT IS NOT V.A. ACCREDITED THAT IS SEEKING TO 17
RECEIVE COMPENSATION FOR PREPARING , PRESENTING, OR PROSECUTING A 18
VETERANS BENEFITS MA TTER OR ADVISING , CONSULTING, OR ASSISTING AN 19
INDIVIDUAL WITH A VETERANS BENEFITS MATTER SHALL, BEFORE RENDERING ANY 20
SERVICES, ENTER INTO A WRITTEN FEE AGREEMENT , SIGNED BY BOTH PARTI ES, 21
THAT ADHERES TO ALL CRITERIA SPECIFIED IN 38 C.F.R. § 14.636. 22
(2) THE FEE AGREEMENT SHA LL PROVIDE THE FOLLOWIN G NOTICE 23
IN CONSPICUOUS, BOLD, AND UNDERSCORED TYPE: 24
“THIS BUSINESS IS NOT SPONSORED BY, OR AFFILIATED WITH , THE UNITED 25
STATES DEPARTMENT OF VETERANS AFFAIRS OR THE MARYLAND DEPARTMENT 26
OF VETERANS AND MILITARY FAMILIES, OR ANY OTHER FEDERAL LY CHARTERED 27
VETERANS’ SERVICE ORGANIZATION. OTHER ORGANIZATIONS, INCLUDING BUT NOT 28
LIMITED TO THE MARYLAND DEPARTMENT OF VETERANS AND MILITARY FAMILIES, 29
A LOCAL VETERANS’ SERVICE ORGANIZATION, AND OTHER FEDERALLY CHARTERED 30
VETERANS’ SERVICE ORGANIZATIONS, MAY BE ABLE TO PROVI DE YOU WITH THIS 31
SERVICE FREE OF CHAR GE. PRODUCTS OR SERVICES OFFERED BY THIS BUSI NESS 32
ARE NOT NECESSARILY ENDORSED BY ANY OF T HESE ORGANIZATIONS. YOU MAY 33
QUALIFY FOR OTHER VETERANS’ BENEFITS BEYOND THE BENEFITS FOR WHICH YOU 34
ARE RECEIVING SERVICES HERE. 35
HOUSE BILL 977 5
THE NEAREST VETERANS SERVICE OFFICE TO YOUR HOME O F RECORD IS 1
LOCATED AT: (ADDRESS, PHONE NUMBER, AND CONTACT INFORMATION).”. 2
(3) THE NOTICE IN PARAGRAPH (2) OF THIS SUBSECTION SHALL ALSO 3
BE DELIVERED ORALLY TO THE INDIVIDUAL AT THE TIME THE FEE AGREEMENT IS 4
ENTERED INTO AND THE INDIVIDUAL SHALL SIGN AN ACKNOWLEDGMENT THAT THE 5
INDIVIDUAL UNDERSTANDS THE NOTICE. 6
(C) IF AN INDIVIDUAL WHO HAS ENTERED INTO A WRITTEN AGREEMENT IN 7
ACCORDANCE WITH SUBS ECTION (B) OF THIS SECTION DIES BEFORE A CLAIM IS 8
PROCESSED FOR WHICH THE AGREEM ENT WAS ENTERED INTO , THE PERSON 9
PROVIDING THE SERVICE FOR COMPENSATION MAY NOT CHARGE OR COLLECT ANY 10
FEE OR DEBT OWED IN CONNECTION WITH THAT SERVICE. 11
(D) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION , A 12
VIOLATION OF THIS SECTION: 13
(1) IS AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE PRACTICE WITHIN 14
THE MEANING OF TITLE 13 OF THE COMMERCIAL LAW ARTICLE; AND 15
(2) IS SUBJECT TO THE EN FORCEMENT AND PENALT Y PROVISIONS 16
CONTAINED IN TITLE 13 OF THE COMMERCIAL LAW ARTICLE. 17
(E) (1) A PERSON WHO VIOLATES THE DISCLOSURE REQUI REMENT IN 18
SUBSECTION (B)(2) AND (3) OF THIS SECTION IS SUBJECT TO: 19
(I) A CIVIL PENALTY OF NOT MORE THAN $10,000 FOR EACH 20
VIOLATION; AND 21
(II) A 1–YEAR BAN FROM OFFERI NG SERVICES RELATING TO 22
VETERANS BENEFITS MATTERS IN THE STATE. 23
(2) CIVIL PENALTIES SHALL BE IN AN AMOUNT ORDE RED BY THE 24
DISTRICT COURT IN AN ACTION BROUGHT BY THE ATTORNEY GENERAL. 25
(3) EACH DAY A VIOLATION CONTINUES IS A SEPARATE VIOLATION. 26
(F) ANY CIVIL OR ADMINIST RATIVE PENALTY COLLE CTED BY THE 27
ATTORNEY GENERAL IN AN ACTION UNDER THIS SECTION SHALL BE DEPOSITED IN 28
THE MARYLAND VETERANS TRUST FUND. 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
October 1, 2026. 31