BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 418| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 418 Author: Senate Veterans Affairs Committee Amended: As introduced Vote: 21 SENATE VETERANS AFFAIRS COMMITTEE : 7-0, 4/14/09 AYES: Denham, Correa, Wiggins, Negrete McLeod, Cedillo, Wyland, Maldonado SUBJECT : Department of Veterans Affairs: contracts: veterans service organizations SOURCE : Author DIGEST : This bill makes technical and clarifying changes to existing law regarding the use of General Fund monies for contracts with veterans service organizations for services they provide to veterans. ANALYSIS : Existing Law and Background County Veteran Services Officers (CVSOs) are a joint venture of different levels of government to help veterans claim their veterans' benefits. California has an agreement with counties to pay 50 percent of the cost. At the time the agreement was made, 50 CONTINUED SB 418 Page 2 percent equaled $5 million. The state has never met its commitment and has never given more than $2.6 million in spite of the fact that 50 percent of the cost now equals $23 million. Because of the lack of support and help the state has given veterans in attaining benefits, there have not been enough CVSOs hired to help all the veterans in California file their claims. Not surprisingly other groups have sought to come forward to help veterans. Over time these groups have also asked the state for money to fund their efforts. The end result was that these groups were fighting over the same pot of money. Eventually an agreement was reached that when the CVSOs received their full $5 million funding, then a joint effort would be launched to help all groups receive funding to help relieve the backlog of veterans' claims in California. The agreement resulted in Section 699.5 of the Military and Veterans Code, which references Section 972.1 of the code. In 2008, SB 1778 (Senate Veterans Affairs Committee) was offered as clean up language for Section 972.1 but ran into problems because cleaning up Section 972.1 would have altered the agreement in Section 699.5. This bill revises legislative findings and declarations in existing law with regard to the use of General Fund monies for services provided by veterans service organizations by clarifying that the General Fund monies shall not be allocated until the annual budget for county veteran service officers reaches $5 million. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 4/16/09) American Legion, Department of California TSM:cm 4/17/09 Senate Floor Analyses SB 418 Page 3 SUPPORT/OPPOSITION: SEE ABOVE **** END ****