California lawmakers hear calls to boost county veteran service officers, curb for‑profit 'claim sharks'

County veteran service officers and state veterans officials told a joint informational hearing of the California State Senate and Assembly Committee on Military and Veteran Affairs in Sacramento that local offices need more sustained funding, broader accreditation and stronger enforcement to stop for‑profit claims companies that charge veterans fees for services county offices provide for free.

The hearing brought together county veteran service officers (CVSOs), CalVet officials, national researchers and veterans groups to outline how CVSOs serve as a frontline access point to federal benefits, housing and behavioral health services — and to describe the threat posed by unaccredited private “claim consultants” that critics call “claim sharks.”

Why it matters: CVSOs said state subvention and dedicated funds have not kept pace with demand, even as filings and benefit awards have grown. Speakers argued that additional investment would generate federal benefit dollars and improve care, while new state enforcement and outreach could reduce exploitation of veterans by for‑profit firms.

David West, president of the California Association of County Veterans Service Officers, told the committees that CVSOs “are present and engaged at each step of this journey” of a veteran’s life, from separation papers through end‑of‑life assistance. West described three current state funding streams for CVSOs — the State General Fund subvention (about $11,000,000 annually), the Medi‑Cal Cost Avoidance Program (roughly $838,000) and the Veterans Services Office Fund (about $554,000) — and said those amounts are “grossly inadequate” for statewide need. West said the CACVSO is asking lawmakers to meet the intent in the California Military and Veterans Code to fund 50% of county veterans services operating budgets.

Jim Zenner, Los Angeles County director of military and veteran affairs and the county’s veteran service officer, described LA County’s model — including a 45‑person Veteran Peer Access Network (VPAN) and Bob Hope Patriotic Hall — and said local investment has produced measurable reductions in homelessness and improved outcomes for justice‑involved veterans. “If a veteran served, we serve them,” Zenner said, explaining LA’s “no wrong door” approach and that local authority to provide broader veteran services has allowed the county to “meet veterans where they are.”

Morgan Boyd, San Luis Obispo County veteran services officer, told the panel that his county “currently leads the state of California in veteran suicide per capita” and described a recent mental‑health grant that will co‑locate counseling at VA clinic space. Boyd said his office secured $12,350,000 in new benefits last year for a county population of about 14,000 veterans and that state subvention has not kept pace with a roughly 30% increase in workload.

CalVet Deputy Secretary Roberto Herrera outlined accreditation, training and quality‑control work his department provides. Herrera said CalVet runs a multi‑phase Veterans Service Representative Academy, supervises on‑the‑job training and reviews CVSO filings through district offices co‑located with VA regional offices. He said that California‑represented claims currently have shorter average days‑to‑completion (about 35 days) than many other POAs because of the training and review process CalVet maintains.

Multiple witnesses described predatory private firms that solicit veterans, ask for personal account credentials and charge contingency or flat fees for filing claims. Steve Johnson, Placer County veteran service officer, gave examples of veterans who paid significant fees and then received minimal follow‑up; Deborah Johnson, president of the Veterans of Foreign Wars Department of California, urged criminal penalties or stronger state laws and a public registry to identify accredited providers. "These operators exploit the most vulnerable members of our society for profit under the guise of help," she said.

Researchers also testified about outcomes and scale. Catherine Kuminski, director of studies at the Center for a New American Security, summarized multi‑state research showing that CVSO‑filed claims have higher success rates than unaided filings and that investment in local offices raises claim success and community outcomes.

Committee members expressed broad support for two near‑term items discussed at the hearing: (1) increased state subvention and targeted investments in CVSO staffing and peer/behavioral‑health partnerships (witnesses asked to raise the $11,000,000 subvention closer to $14,000,000 or to meet the 50% funding intent in statute); and (2) legislative and administrative steps to limit or penalize unaccredited fee‑taking by third‑party claims consultants, alongside public outreach to steer veterans to accredited local offices and CalVet resources. Several lawmakers asked CalVet and witnesses to work with legislative staff on public service messaging and on drafting options for state enforcement and a registry of accredited representatives.

What wasn’t decided: The hearing produced no formal votes or binding directives. Witnesses and legislators discussed bills (including a prior 2024 proposal, SB 1124, that did not pass) and a range of policy options; committee members indicated interest in reintroducing or advancing statutory changes but did not adopt final language at the hearing.

Context and next steps: Witnesses said California CVSOs filed a disproportionate share of VA claims relative to the state’s veteran population and that modest state investment leverages significant federal benefit dollars for veterans and their families. CalVet and CVSO leaders committed to follow‑up with metrics for return on investment, to provide specific case lists of predatory practices for prosecutors and to help craft public outreach materials.

Ending: Lawmakers closed the hearing by thanking the witnesses and saying they would continue work on funding and enforcement options; no formal legislative action was taken during the session.