Assembly passes SB 694 to curb firms charging veterans for VA-claim assistance

The California Assembly adopted SB 694 on Aug. 20, 2025, with a final tally of Ayes 46, No 0. Assemblymember Schiavo presented the measure on behalf of Senator Archuleta, saying it would close a ‘‘loophole’’ that allows unaccredited firms to charge veterans thousands of dollars to prepare or submit initial VA disability claims.

Supporters argued the bill would protect disabled veterans from ‘‘claim sharks’’ who present themselves as experts, charge fees that can total months of benefits, and use confusing contract terms to collect from veterans. ‘‘This bill will ensure our veterans are protected from unaccredited, unregulated entities that seek to profit off their hard-earned benefits,’’ Assemblymember Schiavo said when she asked for an aye vote.

Opponents and cautious supporters on the floor said the bill raises tradeoffs. Assemblymember Sharp Collins and others pressed that some veterans, particularly Black and brown veterans in jurisdictions with under-resourced County Veteran Service Offices (VSOs), rely on paid providers because free options are not easily accessible. ‘‘I simply cannot stand idly by while Black veterans in my district tell me this is their only option,’’ Sharp Collins said, urging more time to build state supports rather than an immediate ban.

Other members urged the Assembly to both protect veterans and strengthen the infrastructure that provides free assistance. Assemblymember De Maio said the problem stems in part from inadequate government capacity, and Assemblymember Wilson recommended steps to increase VA accreditation for trusted organizations and boost county funding for VSOs.

The measure’s sponsors said SB 694 also includes limits and oversight: it defines veteran-benefit assistance as a protected consumer service under California law, prohibits fee-taking by unaccredited operators for initial claims, and authorizes enforcement by the attorney general. Schiavo cited examples of veterans billed for months of benefits and said the bill would return that money to veterans’ pockets.

After roughly an hour of floor debate and several members giving remarks for and against, the clerk closed the roll and announced the result: Ayes 46, No 0. The bill now proceeds according to the Assembly’s concurrence and enrolling process, as recorded on the floor.

The debate highlighted two likely next steps: proponents expect state enforcement to target abusive firms, while several members called for follow-up legislation or budgetary action to fund county VSOs and other accredited navigators so veterans retain accessible choices for assistance.

Ending: The Assembly adopted SB 694 and recorded the passage; members signaled intent to return with additional legislative or budget proposals to shore up free assistance capacity and guard against unintended access gaps for vulnerable veterans.