Newsom signs SB 694 to curb predatory 'claim sharks' targeting veterans

Governor Gavin Newsom signed Senate Bill 694 at a ceremony at CalVet headquarters in Sacramento, directing state officials to bar unaccredited companies from charging veterans for help filing Department of Veterans Affairs benefits claims.

The law requires federal accreditation for anyone who represents or advises a veteran on a benefits filing, prohibits unauthorized fees and includes a provision that will void contracts between veterans and unaccredited claims companies beginning Jan. 1, 2027. "California will not tolerate claim sharks that target and exploit our veterans and their families," said Lindsey Sinn, secretary of the California Department of Veterans Affairs, at the signing.

Why it matters: Supporters said SB 694 closes enforcement and transparency gaps and directs state resources to accredited, free help provided through county veteran service officers and veterans organizations. David West, president of the California Association of County Veterans Service Officers, told the event that county offices filed "over 300,000 claims" last year and handled 24,000 tuition-fee waiver applications, which he said returned roughly $175,000,000 to veterans.

Lawmakers and veterans groups described the human cost of predatory firms. "These companies aggressively target veterans at some of the most vulnerable moments of their lives," West said, recounting a case he said led to serious harm. Assemblymember Pilar Schiavo, chair of the Assembly Military and Veterans Affairs Committee and a bill supporter, said the industry that profits from claims assistance can be large and that SB 694 is intended to stop companies from taking thousands of dollars from disabled veterans; she cited examples in testimony, saying some veterans have lost up to $20,000.

Rob Bonta, California attorney general, said his office will enforce the new statute and defend related state laws in court when necessary. "If you want to charge veterans for claims help, you must be accredited, and you must follow the law," he said.

Supporters credited a broad coalition — county veterans service officers, the VFW, the American Legion and other veterans organizations — and bipartisan legislators for pushing the bill through a difficult legislative process. Senator Bob Archuleta, the bill's author and chair of the Senate Military and Veterans Committee, said the measure was designed to stop unaccredited actors from "making millions of dollars" off veterans and to strengthen services offered through accredited representatives.

What happens next: The law takes immediate effect for enforcement pathways described at the signing, and includes the Jan. 1, 2027 clause voiding contracts with unaccredited companies; Attorney General Bonta said his office would coordinate enforcement. County veterans service officers and accredited veterans' groups said they would increase outreach to ensure veterans know help is available for free.

The signing was followed by a question-and-answer period during which officials discussed accreditation, equity in claims processing and the operational effects of fraudulent filings on VA processing times. The event closed with Newsom and legislative champions noting further work ahead to support veterans' services statewide.