BILL ANALYSIS Ó
SENATE COMMITTEE ON VETERANS AFFAIRS
Senator Jim Nielsen, Chair
2015 - 2016 Regular
Bill No: AB 171 Hearing Date: 6/23/15
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|Author: |Irwin |
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|Version: |5/28/15 Amended |
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|Urgency: |Yes |Fiscal: |Yes |
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|Consultant:|Wade Cooper Teasdale |
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Subject: Department of Veterans Affairs: veterans' services.
DESCRIPTION
Summary:
Appropriates $5.6 million annually to the California Department
of Veterans Affairs (CalVet) for allocation to counties to fund
county veterans service officers (CVSOs).
Existing law:
1)Provides for annual appropriation to the CVSOs as determined
in each year's Budget Act.
2)Requires CalVet to determine and report to the Department of
Finance (DOF) the following: The amount of new or increased
monetary benefits paid to eligible veterans by the federal
government that is attributable to the assistance by CVSOs.
3)Mandates that CalVet must, on or before October 1 of each
year, prepare and transmit its determination for the preceding
fiscal year to the Department of Finance and the Legislature.
4)Directs DOF to review CalVet's determination in time to use
the information in the annual Budget Act with regard to
CalVet's budget for the next fiscal year (FY).
This bill:
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1)Appropriates $5.6 million annually from the General Fund (GF)
to CalVet for allocation to counties to fund the activities of
CVSOs.
2)Clarifies that this money shall be available for encumbrance
and expenditure for only one year from the date upon which it
first becomes available for encumbrance.
3)Directs CalVet to develop, no later than July 1, 2016, an
allocation formula based upon performance standards that
encourage innovation and reward outstanding service by CVSOs.
Moneys appropriated for this purpose shall be allocated each
FY in accordance with that formula among those counties that
have established and maintained a CVSO office.
4)Contains an urgency clause. The basis for the urgency is
stated as: "Approximately 50 percent of the current GF
appropriation in support of county veteran service offices
operations expires on June 30, 2015. In order to provide for
continuity of services critical to the successful
reintegration of California's veterans, to increase
California's utilization of veteran benefits, and to ensure
veteran's claims for benefits are processed in a timely
manner, it is necessary that this act take effect
immediately."
5)Deletes existing references in statute that are obsolete or
conflict with this bill's provisions.
BACKGROUND
County Veterans Service Officers
CVSOs are trained, accredited professionals, who may legally
represent veterans in the federal benefits claims process, and
also help connect veterans with state- and locally-provided
benefits. Fifty-six of California's 58 counties have CVSOs,
whose professional interests are represented by the California
Association of County Veterans Service Officers (CACVSO).
The California CVSO model requires close partnership between
state and county governments through the auspices of CalVet and
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the various CVSO offices. Collectively, the CVSO, through claims
initiation and development, and CalVet, through claims
development and representation, provide assistance to veterans
and their dependents in preparing and submitting claims and in
representing claimants before the federal, state and local
agencies providing veterans benefits. CVSOs use the
CalVet-sponsored VetPro software program to enhance their claims
reporting and tracking.
California's Utilization of Veteran Benefits
California's utilization of the primary monetary veteran
benefits, referred to as compensation and pension (C&P), has
historically lagged behind that of the nation as a whole.
Recently, however, California has improved its utilization
rates.
In 2007, CalVet recommended several strategies to address
benefit underutilization, including providing resources in
support of additional full time professional service
representative staff with a focus on areas with large veteran
populations and lower than average benefit participation rates.
The primary strategies are:
1)That subvention funding for CVSOs should be increased to
support an expansion of county veterans service office
staffing. The additional funding shall be directed to
expanding the staff dedicated to full time outreach and claims
work.
2)That resources are needed to fund additional professional
service representative staff at CalVet district offices in
support of claims representation (appeals), local training,
and local outreach. Outreach should specifically increase in
areas where the state can provide economy of scale.
According to CalVet's latest annual report (October 20, 2014),
CVSOs brought in approximately $546 million in new, recurring
veteran benefits into the state's economy.
CVSO Funding
While CVSOs are independent local agencies, funding is derived
from a combination of local and state resources. The state
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provides limited local assistance funding from various sources,
including the GF (subvention), Veterans Service Office Fund
(VSOF), and reimbursements (Medi-Cal cost avoidance). The
subvention funding is appropriated to CalVet, which allocates
the funds to the CVSOs.
Although Military and Veterans Code (MVC) Section 972.1 sets a
target of $11 million dollars for subvention funding, actual
funding has never reached that level. Since 2004, the state's
contribution to CVSO funding has languished at $2.6 million with
two temporary exceptions. The exceptions occurred recently, when
the Legislature enacted two consecutive single-year
augmentations of $3 million, which were included, respectively,
in the 2013-14 and 2014-15 state budget bills.
The two additional single-year augmentations were dedicated to
one of three main themes from the CalVet/CVSO best practices
manual:
" Contacting veterans.
" Connecting veterans to their benefits and services.
" Continuous communication with veterans.
The funding increase boosted the abilities of CVSOs and CalVet
to connect veterans in their communities with the expansion of
outreach activities, thereby linking more veterans with their
community-based system of care and local service providers. The
funds have allowed for the deployment of 32.5 additional
professional veterans service representatives and 30 support
staff to connect veterans with their compensation and pension
benefits available through the USDVA, resulting in an increase
of federal dollars drawn down to the state this year and
continuing into future years.
COMMENT
Author Statement
"California is home to an estimated two million veterans, and
their widows or widowers, who are often unaware that they may be
eligible for benefits or federal pensions and California's CVSOs
are the initial local point of contact for these potential
claimants.
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"According to CalVet reporting, it has been determined that from
1995 to 2013, the state had cumulatively budgeted $41.4 million
to CVSO funding, an investment that helped local veterans obtain
$4.1 billion in new federal moneys. This is a return of about
$98 for every $1 the state allocates to CVSOs. Furthermore, the
$4.1 billion in new funding reflects benefits that veterans and
their dependents may continue to receive for the rest of their
lives."
Committee Comments
Without permanent legislative recalibration or another
temporary, annual Budget augmentation, State GF funding for
CVSOs will continue at $5.6 million only through June 2015, then
will revert back to $2.6 million. During the period 2007 to
2013, the Legislature considered numerous bills, which would
have increased state subvention funding to CVSOs, but none were
enacted. If enacted, AB 171 would break through that wall.
Related Legislation
AB 2703 (Quirk-Silva, 2014): (1) requires CalVet, no later than
January 1, 2015, to develop an allocation formula based upon
performance standards that incentivize CVSO performance; and (2)
declares the Legislature's intent to fund specified CVSO
activities and to provide an additional $400,000 for
disbursement to the counties to encourage innovation and reward
outstanding service by CVSOs. (Held, suspense, Senate Committee
on Appropriations)
SB 419 (Senate Veterans Affairs Comm, Chapter 48, Statutes of
2009) (1) revises findings and declarations in existing law by
declaring that 50 percent of the amount annually budgeted for
CVSOs is (should be) approximately $11 million (rather than the
existing $5 million); (2) sunsets after January 1, 2016; and (3)
only becomes operative if SB 418 (Senate Committee on Veterans
Affairs, 2009) is chaptered. This majority-vote bill contained
no appropriation, and was not keyed fiscal.
SB 418 (Senate Veterans Affairs Comm, Chapter 48, Statutes of
2009) revises legislative findings and declarations in existing
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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 CVSOs reaches $5 million. Contained no appropriation.
Nonfiscal.
SB 1778 (Senate Committee on Veterans Affairs, 2008) changes
findings and declarations by increasing the amount budgeted for
CVSOs from $5 million to $11 million. This bill was not an
appropriation. (Vetoed)
SB 1222 (Cedillo, 2008) (1) increases funding for veterans
outreach by appropriating three dollars for every California
veteran; and (2) requires that each three-dollar appropriation
be disbursed as follows: CVSOs - $2.35; veteran service
organizations - $0.50; and the Veteran Services Division/CalVet
- $0.15. (Held, suspense, Senate Committee on Appropriations)
AB 1814 (DeVore, 2008) "The Veterans Benefit Recovery
Augmentation Plan" facilitates CalVet contracting with veteran
services organizations to augment the outreach services provided
CalVet's Veterans Service Division. (Held, suspense, Senate
Committee on Veterans Affairs)
AB 2577 (Salas, 2008) supports reinstating funding cut by the
Governor for the CVSOs as well as the State Veteran Service
Officers. (Held Assembly Committee on Rules)
AB 389 (Salas, 2007) appropriates $5,000,000 from the General
Fund to CalVet for disbursement to the counties. (Held,
suspense, Assembly Committee on Appropriations)
AB 2268 (Samuelian, Chapter 804, Statutes of 2004) authorizes
CalVet to contract out services to VSOs and, with the approval
from the Department of Finance, to reimburse those organizations
for services rendered on a formula/performance basis starting in
fiscal year 2006-07.
SB 608 (Johannessen, Chapter 318, Statutes of 1997) approves a
CVSO funding level of up to $5,000,000 of which only
approximately $2,500,000 has traditionally been funded.
POSITIONS
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Sponsor: California Association of County Veteran Service
Officers (CACVSO)
Support:
Amador, County of
American Legion, Department of California
AMVETS, Department of California
California State Association of Counties (CSAC)
California State Commanders Veterans Council
Butte, County of
Colusa, County of
Contra Costa, County of
Del Norte, County of
El Dorado, County of
Fresno, County of
Glendale City Employees Association
Kings, County of
Placer, County of
Los Angeles, County of
Madera, County of
Mariposa, County of
Merced, County of
Plumas, County of
Marin, County of
Military Officers Association of America, California Council of
Chapters
Napa, County of
National Guard Association of California
Rural County Representatives of California (RCRC)
San Bernardino Public Employees Association
San Joaquin County Health Care Services Agency
San Luis Obispo County Employees Association
Santa Barbara, County of
Shasta, County of
Sierra, County of
SMUD Employees
Tehama, County of
Tulare, County of
Ventura, County of
Veterans of Foreign Wars, Department of California
Vietnam Veterans of America, California State Council
Yuba, County of
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Oppose: None received
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