AB 826 California Assembly · 2025-2026 Regular Session

Deceptive practices: service members and veterans.

Summary

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 advertising or promoting any event, presentation, seminar, workshop, or other public gathering regarding veterans' benefits or entitlements that does not include certain statements, as specified. This bill would expand the above-described unfair methods of competition and unfair or deceptive acts to include advertising or promoting any service that does not include the specified statements.

Issues: ✓ Veterans

Bill status failed 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 19, 2025 Last action Feb 2, 2026

Maddy AI version diff · 4 comparisons

What changed between versions

04/02/25 - Amended Assembly → 01/05/26 - Amended Assembly · 6 edits · Jan 5, 2026

MODERATE

AB 826 was substantially expanded to amend Section 1770 of the Civil Code (the Consumers Legal Remedies Act) in addition to its original provision adding Section 401.5 to the Military and Veterans Code. The new amendments add multiple prohibited practices under the CLRA targeting veterans' benefits scams, including requirements for specific disclosure statements in advertising and events about veterans' benefits, a ban on unreasonable fees for public social services assistance (including VA benefits), and a prohibition on selling illegal financial products tied to veterans' benefits. This transforms the bill from a narrow fee-prohibition into a broader consumer protection measure with civil remedies available under the CLRA.

SCOPE

The bill now amends Section 1770 of the Civil Code (Consumers Legal Remedies Act) in addition to adding Section 401.5 to the Military and Veterans Code, significantly broadening the legal framework under which violations can be pursued.

REQUIREMENT

New paragraph (25) requires anyone advertising or promoting a service or event about veterans' benefits to include a specific statement that they are not authorized to file an initial Aid and Attendance application or represent veterans before the Board of Veterans' Appeals, and that it would be illegal to accept a fee for preparing that application. The statement must appear in the same type size and font as the word 'veteran.'

New paragraph (25)(B) requires a second disclosure statement for events not sponsored by the VA, California DVA, or congressionally chartered veteran organizations, stating that no insurance products promoted are endorsed by those organizations and that they offer free advice to veterans.

ELIGIBILITY

New paragraph (24) prohibits charging an 'unreasonable fee' (defined as exorbitant and disproportionate to services performed) to prepare, aid, or advise applicants for public social services, which now explicitly includes activities of the US Department of Veterans Affairs and California Department of Veterans Affairs. Licensed California attorneys are exempt when providing representation in administrative or court proceedings.

ENFORCEMENT

New paragraph (26) makes it an unfair or deceptive practice to advertise, offer for sale, or sell a financial product that is illegal under state or federal law, specifically including cash payments for the assignment of a consumer's right to receive future pension or veteran's benefits.

FISCAL

The fiscal committee vote changed from 'yes' to 'no,' indicating a reassessment of the bill's fiscal impact following the expansion of scope.

02/19/25 - Introduced → 03/24/25 - Amended Assembly · 5 edits · Mar 24, 2025

MODERATE

AB 826 was substantially expanded from a purely technical cleanup of an existing veterans' education benefits provision to include a new prohibition on charging fees for assisting veterans with filing federal benefit claims. The amended bill adds Section 401.5 to the Military and Veterans Code, which bans any person or business from charging a fee to help a veteran file a claim with the US Department of Veterans Affairs, and imposes a $2,000 civil fine per violation split between the Veterans Service Office Fund and the prosecuting district attorney's office.

Scope change

The bill's scope expanded significantly: it now covers all persons and businesses that assist veterans with federal benefit claims, not just the narrow technical correction to state education benefit eligibility rules. The fiscal committee answer also changed from 'no' to 'yes,' indicating the new enforcement mechanism has fiscal implications.

REQUIREMENT

New Section 401.5 prohibits any person or business from charging a fee to assist a veteran with filing a veterans' benefit claim to the US Department of Veterans Affairs.

ENFORCEMENT

Each document filed (or that the veteran received assistance in filing) in exchange for a fee counts as one separate violation, meaning multiple violations can be charged per case.

FISCAL

A $2,000 civil fine is imposed per violation: $1,000 goes to the Veterans Service Office Fund (Section 972.2) and $1,000 goes to the district attorney's office that processed the fine.

TECHNICAL

Section 981.6 language was cleaned up from awkward drafting (e.g., 'No A veteran who is receiving federal educational benefits shall be is not eligible') to clear prose ('A veteran who is receiving federal educational benefits is not eligible').

SCOPE

The bill title and scope expanded from amending only Section 981.6 to also adding new Section 401.5, broadening the bill from a technical fix to a substantive consumer-protection measure for veterans.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 2, 2026

Lower · Passed

From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

lower

Jan 12, 2026

Lower · Passed

In committee: Set, second hearing. Hearing canceled at the request of author.

lower

Jan 6, 2026

Committee

Re-referred to Com. on JUD.

lower

Jan 5, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

lower

Apr 21, 2025

Lower · Passed

In committee: Set, first hearing. Hearing canceled at the request of author.

lower

Apr 9, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on JUD. (Ayes 8. Noes 0.) (April 8). Re-referred to Com. on JUD.

lower

Apr 3, 2025

Committee

Re-referred to Com. on M. & V.A.

lower

Apr 2, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on M. & V.A. Read second time and amended.

lower

Mar 25, 2025

Committee

Re-referred to Com. on M. & V.A.

lower

Mar 24, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on M. & V.A. Read second time and amended.

lower

Mar 24, 2025

Committee

Referred to Coms. on M. & V.A. and JUD.

lower

Feb 20, 2025

Lower · Passed

From printer. May be heard in committee March 22.

lower

1 primary · 2 co-sponsors