BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 717| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 717 Author: Chávez (R) Amended: 9/5/13 in Senate Vote: 21 SENATE VETERANS AFFAIRS COMMITTEE : 7-0, 6/11/13 AYES: Hueso, Knight, Block, Correa, Lieu, Nielsen, Roth NO VOTE RECORDED: Vacancy SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 75-0, 5/9/13 (Consent) - See last page for vote SUBJECT : Veterans SOURCE : California State Commanders Veterans Council DIGEST : This bill requires the California Veterans Board (Board) to serve as an advisory body to the Secretary of the Department of Veterans of Affairs (CalVet Secretary) and the department, and eliminates certain qualifications to be a member of the Board, and requires every Board member to be a member in good standing with a congressionally chartered veteran service organization. Requires CalVet to respond to the Board regarding the Board's proposed policy changes, prior to the Board's next scheduled meeting. This bill also deletes specified reporting requirements of the Board and requires the CalVet Secretary and the Board to seek to confer with the California State Commanders Veterans Council (Council) at least twice per calendar year on issues affecting California veterans. CONTINUED AB 717 Page 2 Senate Floor Amendments of 9/5/13 require the Board to provide policy advice to both CalVet Secretary and CalVet (as a department), requires CalVet to respond to the Board, regarding the Board's proposed policy changes, prior to the Board's next scheduled meeting, make statements of legislative intent. ANALYSIS : Existing law: 1.Provides that the Board shall determine the policies for all CalVet departmental operations. 2.Requires the seven-member Board to be appointed by the Governor and confirmed by the Senate for four-year terms. 3.Requires members to meet the definition of "veteran" contained in Govt. Code Sec.18540.4. 4.Requires that five of the Board positions be uniquely defined and filled by individuals, who meet specified categories of education, training, professional expertise, or personal experiences. This bill: 1.Changes the Board's role from determining CalVet policies to serving as an advisory body to the CalVet Secretary. 2.Requires the Board to provide policy advice to both the CalVet Secretary and CalVet (as a department). 3.Requires CalVet to respond to the Board, regarding the Board's proposed policy changes, prior to the Board's next scheduled meeting. 4.Repeals the categorical requirements for four of the five Board positions that have eligibility defined by educational or experience. 5.Requires that every Board member be a member in good standing with a congressionally chartered veteran service organization. CONTINUED AB 717 Page 3 6.Provides that nothing in the bill be construed to prohibit any currently serving Board members from completing their terms. 7.Requires the CalVet Secretary and the Board to seek to confer with the Council at least twice per calendar year on issues affecting California veterans. Background Role of the Board . CalVet was established in 1921 to provide the state's veterans with low-cost home and farm loans, assistance in obtaining veterans' benefits, and various levels of care at three residential facilities. To set policy for CalVet and provide veterans a forum to appeal departmental decisions denying services, the Legislature established the Board in 1946. State statutes give the Board broad policy-making authority over CalVet. The State Auditor released an audit in June 2003, which severely indicted the Board. The audit report stated: "The Board of seven volunteers has established itself as an ineffective policy-maker, unable to strengthen weaknesses in the department's administration of veterans' programs that the Bureau of State Audits (Bureau) has reported over the past three years. As an example of the Board's inability to effect strong policy, only half of its 32 policies provide direction for departmental operations. Further, although the Bureau and other oversight agencies have identified a number of problems within the department, the Board has no clearly defined policies to guide and monitor the department's corrective actions. The Board also has not used the services of the inspector general for veterans' affairs to review the department's operations in areas where Board policy could improve the department's delivery of services to veterans." (The California Performance 2004 report on streamlining government recommended that the Board be eliminated and its functions performed within a newly modified Department of Veterans Affairs. That elimination did not occur.) The audit report offered several recommendations to the Board. The list included the following: CONTINUED AB 717 Page 4 "Assert its policy-making authority by actively identifying areas of the department's operations that it feels need guidance or direction and developing meaningful policies that provide the department with the guiding principles necessary to complete its mission." "To enable Board members to perform their policy-making and oversight functions effectively, the Board should provide training to its members on the laws and regulations controlling veterans' affairs; board policies, duties, and authority, including how to conduct appeals; departmental operations; state laws regarding open meetings; and state laws regarding the privacy of medical information." California State Commanders Veterans Council . Fifty-plus years old, the Council is a group of 22 veterans service organizations and other military-related entities. Its mission is to evaluate pending state legislation affecting California's veterans, whether active, reserve, National Guard, or retired. Congressionally chartered veterans organizations . Veterans Service Organizations (VSOs) are non-profit organizations dedicated to supporting veterans and their families. Some VSOs are congressionally chartered and have legal federal recognition or approval for the purposes of preparing, presenting, and prosecuting claims under laws administered by the United States Department of Veterans Affairs, as provided in Title 38 of the U.S. Code and the Code of Federal Regulations. Among the better known congressionally chartered VSOs are the American Legion, Disabled American Veterans, Veterans of Foreign Wars, AMVETS, Marine Corps League, Order of the Purple Heart, and Vietnam Veterans of America. Prior Legislation AB 2784 (Committee on Veterans Affairs, 2010) would have: (1) expanded the Board to nine members; (2) required that two members of the Board be appointed from Operation Iraqi Freedom or Operation Enduring Freedom; (3) added mental health counseling to an aspect of qualifications that can be considered for appointing a member of the Board; (4) prohibited the CalVet Secretary from making policy recommendations without first CONTINUED AB 717 Page 5 briefing the Board; and (5) encouraged the Governor to appoint a member with expertise in women's mental and physical health issues. This bill was vetoed by the Governor. SB 164 (Johannessen, Chapter 220, Statutes of 2001) made several reforms to streamline Board operations, including changing the reporting requirements and separating out the annual budget. CalVet provides support to the Board; this measure ensured that adequate office space and meeting space are also provided, and that there is easy access for disabled veterans. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 9/6/13) California State Commanders Veterans Council (source) ARGUMENTS IN SUPPORT : According to the author's office, this bill will replace the professional requirements for appointees to the California Veterans Board with the requirement of appointees being a member of a congressionally chartered veterans' organization. This change will increase the number of qualified applicants, and will ensure those appointed are veterans who are aware of the issues today's veterans face. ASSEMBLY FLOOR : 75-0, 5/9/13 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer, Levine, Linder, Lowenthal, Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Torres, Wagner, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Donnelly, Holden, Logue, Waldron, Vacancy AL:ej 9/6/13 Senate Floor Analyses CONTINUED AB 717 Page 6 SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED