02/21/2025
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The American Legion Department of South Dakota, strongly advocates for the passage of South Dakota House Bill 1076 to protect our veterans from unqualified and sometimes unscrupulous individuals who seek to exploit them during the VA claims process. The American Legion has long stood for ensuring that only VA-accredited representatives—those who have undergone rigorous training and understand the complexities of the claims system—are authorized to assist veterans in filing their initial claims. This bill is a vital step toward reinforcing those protections. We vehemently appose HB 1238 which allows for non VA-accredited companies to charge Veterans for services.
In some instances, bad actors, including private companies and individuals—some with foreign ownership—have taken advantage of veterans by charging fees for services they are neither accredited nor qualified to provide. HB 1238 would make it legal in South Dakota for them to do so. HB 1076 restores necessary criminal penalties to hold these entities accountable and ensures that only trained, ethical professionals assist our nation’s heroes.
Furthermore, HB 1076 supports VA-accredited organizations which offer proper and accurate representation to veterans free of charge. We oppose any effort to allow unaccredited individuals to operate as legal representatives without completing the accreditation process. It is also critical that state authorities, including the attorney general and bar associations, take an active role in identifying and prosecuting those who misrepresent themselves as veteran advocates.
Additionally, HB 1076 aligns with the Supremacy Clause of the U.S. Constitution, which establishes that federal law takes precedence over state laws when conflicts arise. Since the VA operates under federal authority, it is essential that only those accredited by the Department of Veterans Affairs are legally allowed to assist veterans in claims processing. Unaccredited individuals or entities attempting to circumvent this process violate federal regulations, and states have a duty to uphold these standards rather than enable workarounds that could mislead or harm veterans. HB 1238 violates federal statute and the Supremacy Clause.
Most importantly, when unaccredited individuals or predatory companies charge veterans fees for filing claims, they are taking money that should be going toward the veteran’s healthcare, housing, and overall well-being. VA benefits are designed to provide direct support for veterans in need—not to line the pockets of individuals exploiting the system. Every dollar that is wrongly diverted to fraudulent or unnecessary fees is a dollar taken away from essential medical care, rehabilitation services, and family support. HB 1076 ensures that VA funds serve their intended purpose: supporting those who have sacrificed for our country.
Passing HB 1076 is not just about enforcing regulations—it is about upholding the dignity and rights of those who served our country while ensuring compliance with federal law and protecting the financial resources meant for veterans’ care. The American Legion urges South Dakota lawmakers to stand with us in protecting veterans from fraud and misinformation by voting in favor of HB 1076 and opposing HB 1238.