California lawmakers hear county veterans service officers warn of underfunding, accreditation gaps and predatory “claim sharks”

Lawmakers heard Tuesday that California’s county veterans service officers (CVSOs) are operating with insufficient state funding while facing a growing threat from for‑profit “claim sharks” that charge veterans for services provided for free by accredited offices.

David West, president of the California Association of County Veterans Service Officers and Nevada County veterans service officer, told the joint informational hearing of the Senate and Assembly military and veterans affairs committees that CVSO funding “represents just 2% of CalVet’s general fund budget and a mere 0.005% of the state's total general fund spending.” He urged sustained investment and noted state and federal enforcement gaps that allow unaccredited firms to operate.

The appeal to the Legislature came as county officers and CalVet officials described how CVSOs provide life‑long, community‑based help — from filing VA compensation claims to connecting veterans with housing, behavioral health and local benefits — and presented numbers intended to show return on investment. West said California CVSOs submitted 12% of all claims to the U.S. Department of Veterans Affairs in 2024 despite the state housing about 8% of the nation’s veterans. Placer County veterans service officer Steve Johnson and others offered local case examples of veterans who lost time or money after relying on paid consultants.

Why it matters: witnesses framed the issue as both fiscal and moral. County officers asked the state to increase subvention for CVSOs (current state general fund support cited at $11 million per year) and to enforce accreditation and fee rules that, according to witnesses, would curb predatory practices and improve veteran outcomes. CalVet and county officials said better funding would expand accredited staff, reduce backlogs and increase federal benefits captured for California residents.

What the witnesses said - David West (president, California Association of County Veterans Service Officers; Nevada County veterans service officer) summarized CVSO work and funding shortfalls, listing three primary funding streams: the state general fund ($11,000,000 annually), a Medi‑Cal Cost Avoidance program (~$838,000) and the Veterans Services Office Fund (~$554,000). He argued those amounts are inadequate for serving about 1.4 million veterans in California.

- Jim Zenner (Los Angeles County Director of Military and Veterans Affairs / Los Angeles County veterans service officer) described Los Angeles County’s model, including a 45‑member Veteran Peer Access Network (VPAN) that serves peers in the community and a coordinated “One Team” approach with the VA that county leaders credit with reducing veteran homelessness in the county. “If a veteran served, we serve them,” Zenner said, describing local decisions to meet veterans where they are.

- Morgan Boyd (San Luis Obispo County veterans service officer) described a county program supported by CalVet and a Prop 63 mental health grant, and said his office recovered about $12,350,000 in new benefits for local veterans last year while noting subvention funding had fallen despite rising workload.

- Roberto (Rob) Herrera (Secretary of Veteran Services, California Department of Veterans Affairs, CalVet) outlined CalVet’s role in accreditation and training. He described CalVet’s phased academy and the requirement that CVSO staff complete supervised on‑the‑job training and an approved examination before representing claimants. Herrera noted California’s CalVet‑accredited claims show lower average days to completion than some other POAs and that CalVet district offices review and quality‑control CVSO submissions.

Predatory for‑profit actors: witnesses gave multiple examples of unaccredited firms that solicit veterans, promise expedited outcomes or guaranteed ratings, collect up‑front or contingency fees, then provide little or no follow‑through. County officers described cases in which veterans paid thousands of dollars for little service, had claims mishandled, or were asked for VA login or banking credentials. San Luis Obispo’s Morgan Boyd said his office has documented a dozen cases with alleged violations and that some local district attorneys are investigating.

Policy proposals and asks - Increase state subvention for CVSOs (witnesses and committee discussion referenced a current appropriation of $11 million and recurring proposals to raise that figure; panelists described a $14 million budget ask to expand capacity). - Strengthen enforcement and statutory penalties for unaccredited fee‑taking on initial VA claims and create clearer state registration/verification for accredited representatives. - Expand CalVet training, district office capacity and state outreach/PSA work to steer veterans toward accredited local offices and away from predatory firms.

What was not decided: the hearing collected testimony and requests but recorded no formal votes or committee actions. Committee members said they would pursue legislative options this year and explore public outreach and enforcement tools.

Context and next steps: panelists said donations, philanthropy and county investment have helped seed local innovations such as VPAN and joint homelessness efforts, but that state support is required to scale such models across California. Committee members signaled interest in drafting or reintroducing legislation to curb predatory consultants and to add outreach and verification tools for veterans seeking help.

Ending: lawmaker and panel remarks closed with broad support for CVSOs’ work and a pledge from committee members to pursue funding and enforcement paths raised during the hearing.