Gov. Newsom signs bill outlawing fee-based organizations that help veterans with disability claims
By Ashley Zavala
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SACRAMENTO, Calif. (KCRA) — Gov. Gavin Newsom on Tuesday signed a controversial measure that will outlaw most fee-based organizations that help veterans with their disability claims.
The measure known as SB 694, has divided Democrats and veterans serving as lawmakers at the state Capitol over the veteran’s benefits system that both sides have acknowledged is broken. The bill is rooted in businesses that exist to help with backlogs and long waits associated with claims filed with official government accredited Veterans Service Organizations. Instead of going through the VSOs, Veterans can pay other, fee-based services to help with their claims. Often times, those veterans can be taken advantage of by some of these businesses, which is what the new law aims to tackle.
“We owe our veteran community a debt of gratitude – for their years of service and sacrifice,” Newsom said in a statement. “By signing this bill into law, we are ensuring veterans and service members get to keep more money in their pockets and not line the coffers of predatory actors. We are closing this federal fraud loophole for good.”
The measure had been under intense negotiations but was abruptly approved by the State Senate last month. Democratic State Senator Bob Archuleta, who is a veteran himself and wrote the new law, said it’s meant to protect veterans from predatory practices. But other veterans, such as Democratic Senator Tom Umberg, has likened the measure to outlawing private attorneys.
“Could you imagine if we as a government said, I’m sorry all criminal defense counsel are by definition bad. Therefore, you must accept your public defender. You have no choice,” Umberg said on the Senate floor last month.
As the measure was changed to outlaw the businesses, the only disabled veteran serving in California’s Legislature, Republican Assemblyman Jeff Gonzalez, wanted his name removed from the bill. That did not happen before Newsom’s bill signing Tuesday.
At the bill signing Tuesday, the governor could be seen smiling when KCRA 3 asked about all of this. He noted adding and removing lawmaker names is the legislature’s job.
“I’m proud to sign this bill,” Newsom said. “I am very clear, this is the right thing to do.”
Archuleta responded by saying people working with veterans should be accredited.
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