SB 1124: Deceptive practices: service members and veterans.

The Consumers Legal Remedies Act makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer, including charging or receiving an unreasonable fee, as defined, to prepare, aid, or advise any prospective applicant, applicant, or recipient in the procurement, maintenance, or securing of public social services, as defined to include, among other things, veterans pensions.

This bill would expand the definition of public social services to also include other veterans benefits. The bill would also expand the definition of an unreasonable fee to include a fee charged with respect to federal veterans benefits that exceeds the amount that could be charged for those services by an attorney or claims agent accredited by the United States Department of Veterans Affairs.

Existing law prohibits a person from, in connection with any transaction or any sale of goods or services, electronically accessing a Common Access Card (CAC) issued to a service member, placing or requiring the placement of such a CAC in a smart card reader, requesting or requesting entry of the personal identification number (PIN) associated with such a CAC, or requiring a service member to log in to any United States Department of Defense or, in the case of a member of the United States Coast Guard, United States Department of Homeland Security computer system. Existing law makes void a transaction or sale entered into in violation of these provisions.

This bill would extend the above-described restrictions to prohibit requiring a former or current service member to log in or share their credentials for accessing, or accessing with another persons credentials, any United States Department of Defense, United States Department of Veterans Affairs, or United States Department of Homeland Security computer system. Except as provided, the bill would prohibit a person from, in connection with any transaction or any sale of goods or services, directly or indirectly soliciting, contracting for, charging, or receiving, or attempting to solicit, contract for, charge, or receive, any fee or compensation with respect to the preparation, presentation, or prosecution of any claim for benefits under the laws administered by the United States Department of Veterans Affairs. The bill would also make void a contract performed in violation of these provisions. The bill would make violations of these provisions a misdemeanor. By expanding the scope of a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.