Senate Judiciary panel refers SB 694 to rules after hearing on protections for veterans against for‑profit 'claim sharks'

The California State Senate Committee on Judiciary voted 12-0 to re‑refer Senate Bill 694 to the Senate Rules Committee after a lengthy hearing in Room 1200 of the 0 Street Building that drew dozens of veterans, veterans service organizations and companies that assist veterans with Department of Veterans Affairs claims.

Sponsors said SB 694 would strengthen consumer protections by making state law consistent with federal restrictions on who may prepare or present veterans’ benefits claims. "SB 694 strengthens California's commitment to protecting veterans from exploitation in the federal claims process," said Senator Archuleta, the bill's author. He told the committee he had consulted industry groups and veterans organizations and concluded California lacks the federal authority and resources to replace the VA accreditation system, but can act to stop unaccredited actors from charging for initial claims.

The bill’s text, as presented to the committee, would: mirror the federal prohibition on preparing or presenting VA claims unless an individual or organization is accredited under federal law; increase penalties for unauthorized access to veterans’ data in VA systems; and bar fees that exceed what a VA‑accredited attorney or claims agent may legally charge, sponsors said. The office of California Attorney General Rob Bonta provided a letter of support that was read into the record.

Supporters — including county veteran service officers (CVSOs), the American Legion, Veterans of Foreign Wars, Vietnam Veterans of America, and numerous county boards of supervisors and chambers of commerce — told the committee that unaccredited, for‑profit companies sometimes called "claim…