CA Legislation on Financial Planners / Veterans

[boardman]

CA legislation from over the past few years that dealt with the subject of financial planners / veterans. Senator Corbett had a bill signed into law in 2011, SB 180.

SB 180: Financial planners had been targeting high wealth veterans who otherwise would not qualify for the Aid and Attendance Program and counsel them how to move their assets into 'safe harbors'. These advisors were charging $10,000 or more for their services. SB 180 prohibits anyone from charging an unreasonable fee for assisting a person to qualify for a federal pension benefit program.

Currently, Corbett is also running SB 272, which restricts the use of military, government terms, symbols, and content that could be interpreted as an endorsement of any product or service.

Also, in 2011, Senator Leno ran SB 1170 which expanded consumer protections governing the sale of insurance to seniors, and adds specific protections for senior veterans.

None of these bills imposed a $10,000 fine or jail time that we can determine.

You may be thinking of a federal law that used to do this. 38 USC § 5905 formerly imposed a penalty and fine for charging veterans to get their benefits. In 2006, it was amended to fine and penalize financial planners from withholding part of the veterans benefit for services rendered.

Attached are the California bills that recently passed that dealt somewhat with this subject.

Corbett SB 180-- http://www.leginfo.ca.gov/pub/11-12/bil ... ptered.pdf

Corbett SB 272-- http://www.leginfo.ca.gov/pub/13-14/bil ... sm_v96.pdf

Leno SB 1170-- http://www.leginfo.ca.gov/pub/11-12/bil ... ptered.pdf