California Senate passes SB 694 to curb predatory veterans’ claims practices after heated debate

Senators passed SB 694 on a 25–6 vote after a floor debate that split veterans advocates and lawmakers over whether the measure protects veterans or restricts their choice of assistance.

Sen. Archuleta, the bill’s author, said the measure extends federal standards to California to prevent for-profit firms from exploiting veterans, arguing that "SB 694 stands for the principle that any business operating in the arena of providing assistance to veterans in filing a claim for VA benefits should have to play by the same set of rules." He described provisions that would increase penalties for unauthorized access to VA data and cap fees charged by nonaccredited firms.

Supporters — including Sen. McGuire and Sen. Wahab — urged passage as consumer protection and said the bill gives veterans, particularly those in vulnerable communities, stronger safeguards against deceptive marketing and hidden contracts. Sen. McGuire noted national attention and bipartisan support for similar reforms and secured permission to read a statement from former U.S. House Speaker Nancy Pelosi endorsing the measure.

Opponents framed their objections around access and choice. Sen. Jones, who said both he and the bill’s author have served, summarized his unease: "I love him. I don't like the bill." Sen. Grove, a veteran who spoke against the measure, contended that the bill would deprive some veterans of timely help and said she was “tired of somebody saying that if I don't support this bill, I don't support veterans. It's an outright lie.” Other senators said the state should pursue alternatives such as expanding and funding veterans service organizations (VSOs) or creating an in-state accreditation pathway rather than restricting private options immediately.

Sen. Stern asked whether the bill would preserve pathways for legitimate companies to continue serving veterans during a transition period and whether the author would commit to reassessing access risks during implementation. The author answered directly: "Yes and yes," and noted the bill delays implementation until Jan. 1, 2027 and allows a one-year phase-in for nonaccredited companies to seek accreditation or wind down services.

The bill drew detailed testimony on alleged abuses: Archuleta cited whistleblower lawsuits and Federal Trade Commission data on fees paid by veterans to such firms. Opponents raised scenarios where veterans used nonaccredited help to secure timely benefits when government or nonprofit services were backlogged.

The Senate roll call reflected the divided opinion; the measure passed with 25 ayes and 6 no votes. Sen. Archuleta said the delay and accreditation pathway are intended to give legitimate providers time to comply and to protect veterans from exploitation going forward.

Next steps: SB 694, having passed the Senate, will proceed to the Assembly for consideration. If signed by the governor, the bill’s effective provisions are scheduled to begin January 1, 2027, with a one-year phase-in period for existing providers.