Senate committee advances bill to curb 'claim sharks' preying on veterans, sends SB 694 to Rules

Sen. Archuleta, the bill's author, presented Senate Bill 694 to the California State Senate Judiciary Committee and said the measure would strengthen state protections for veterans who seek benefits from the U.S. Department of Veterans Affairs (VA), including by prohibiting unaccredited individuals and companies from charging fees for preparing initial VA claims.

The bill's coauthor, Pilar, chair of the Assembly Military and Veterans Committee, described SB 694 as an effort to align state law with federal protections and said veteran service organizations (VSOs) and many county veteran service officers back the bill. Pilar told the committee that an unintentional federal change in 2006 created a loophole that allowed some for‑profit companies to charge veterans for initial claims and operate without effective federal oversight.

Supporters at the microphone — including David West, identified as president of California VSOs, and retired Lt. Col. William Swenson, a Medal of Honor recipient and chief strategy officer at TurboVets — described widespread, predatory practices by some private companies that charge veterans large sums and sometimes seek veterans' private login information. David West said, "This is about stripping away federal protections for veterans so that for profit companies can exploit them." Swenson urged the committee to "stand with California's veterans" and called federal enforcement "weak," arguing SB 694 would close state‑level loopholes.

Opponents testified that some veteran‑owned companies provide intensive, paid help that veterans seek when free options are unavailable or insufficient. William Taylor, founder of Veterans Guardian (VBG), said his company is "veteran owned and veteran employed" and described providing lengthy, evidence‑heavy assistance that he said produced fast results for his clients. Joshua Prado, another opponent, argued the bill could "harm veterans by limiting access to trusted effective help" and asked lawmakers to preserve choice while prosecuting bad actors.

Committee members pressed witnesses on the federal accreditation process, the limits that federal law places on fee charging by accredited representatives, and how many veterans currently receive paid help from private firms. Witnesses and authors cited several numbers during the hearing: supporters said federal data and consumer‑protection groups have documented hundreds of millions of dollars taken by predatory firms (a figure cited in testimony was $477,000,000); the authors said there are roughly 13,670 VA‑accredited representatives in California (about 8,000 VSO representatives, more than 5,000 attorneys and about 521 claims agents); witnesses for private companies said many clients come to them only after trying free services and that some companies provide extensive work (one witness said his company averages decisions in about 85 days and a 90% success rate).

Several senators urged compromise steps if the committee did not immediately advance the bill to the floor. Senators proposed delaying implementation for currently contracted clients, creating a working group in the interim to draft amendments, and adding consumer‑protection guardrails such as fee caps, bans on upfront nonrefundable fees, written notice of free VSO options, and private rights of action for veterans who are harmed. The bill's authors signaled willingness to continue negotiations.

The committee then voted on a motion offered by Sen. Wahab to re‑refer SB 694 to the Senate Rules Committee so stakeholders and members could continue negotiating changes and address concerns about veterans currently represented by private firms. The roll call showed 12 ayes, 0 nos; the motion carried. Committee members and witnesses said the Rules referral preserves the bill and allows further work rather than killing the proposal.

Next steps: SB 694 moves to Senate Rules, where sponsors and opponents expect further amendments and possible interim work groups to address accreditation pathways, consumer protections, and transition plans for veterans who are currently represented by private firms.