(Photo: prostooleh)

California lawmakers are preparing for a vote on legislation focused on protecting Veterans from unaccredited companies that charge high fees to help file disability claims. Supporters of SB 694 say the bill addresses a long-standing loophole that has allowed so-called claims sharks to operate freely while profiting from Veterans and their families.

SB 694 would bring California law in line with existing federal rules that prohibit charging Veterans for filing initial disability claims. Although those practices are already illegal at the federal level, penalties were removed years ago, limiting enforcement. The bill restores accountability by giving the state attorney general clear authority to act against individuals or businesses that break the law.

Despite broad backing, the bill has faced strong opposition from well-funded lobbying groups representing claims companies. While SB 694 passed the Assembly unanimously, procedural delays at the end of the legislative session pushed the measure into the new year, with a senate floor vote expected in January.

As the vote approaches, advocates are urging Veterans, family members, and supporters to contact their state senators and share their experiences with the claims process. They say personal stories help lawmakers understand how these practices affect real people.

During a recent discussion on the bill, advocates described SB 694 as a necessary step to stop what they call widespread abuse.

“This bill is about to hit the Senate floor early January, and this is where we’ve all got to get together and start calling all the senators, all the Assembly members to let them know that their vote is going to be reflective of the support for Veterans,” said California Senator Bob Archuleta (D-30).

David West, President of the California Association of County Veterans Services Officers (CACVSO), and Military and Veterans Affairs Jim Zenner described a growing industry of private companies that market their services through text messages, online ads, and social media. These businesses often promise faster results or guaranteed increases in disability ratings. However, they said many of these operators are not accredited by the VA, do not hold state licenses, and are not required to disclose their fees or business practices. In some cases, Veterans have reported being charged tens of thousands of dollars for services that accredited Veteran service officers provide at no cost.

“These claims sharks, they have no oversight, no accreditation, no license,” Archuleta said. “Even your barber has got a license. You all drive, and you have a license. These people have no license whatsoever.”

A wide range of organizations has voiced support for the bill, including CalVet, the Attorney General’s Office, and Veteran groups such as The American Legion, Veterans of Foreign Wars, and county Veteran service officer associations. Backers say the issue goes beyond individual financial losses. They warn that unchecked fraud and abuse could weaken confidence in the VA claims system and invite greater scrutiny at the federal level, potentially putting legitimate benefits at risk.

“At the end of the day, if these senators are not hearing from you, hearing from Veterans, hearing from your members and your Veteran organizations that this is a critical issue and they better be supporting it, we are not going to be able to win this,” says Pilar Schiavo, Member of the California State Assembly. “We are up against a lot of money, a lot of lobbying.”

Supporters stress that Veterans already have options for assistance. Accredited county and nonprofit Veteran service officers help Veterans file claims free of charge and often connect them with health care, housing, education, and mental health resources. SB 694 does not affect those services. Instead, it targets paid operators who avoid accreditation to bypass fee limits and oversight.

SB 694 is described as a chance for California to take a clear stand for its Veteran community. By reinforcing federal law at the state level, they say the bill sends a message that exploiting Veterans for profit will not be tolerated and that protecting earned benefits remains a priority.

Author: Rikki Almanza

Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted family connection to the military, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.