BILL ANALYSIS Ó
AB 255
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Date of Hearing:
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Jacqui Irwin, Chair
AB 255
(Irwin) - As Introduced February 9, 2015
SUBJECT: Veterans: Inspector General for Veterans Affairs
SUMMARY: Recreates the office of Inspector General in the
California Department of Veterans Affairs (department).
Specifically, this bill:
1)Creates the office of Inspector General (IG) for Veterans
Affairs, who would be subject to the direction of the
Governor, within the department.
2)Requires the IG to be appointed by the Governor, subject to
Senate confirmation.
3)Assigns responsibility to the IG for reviewing the operations
and financial condition of each California veterans home, the
veterans farm and home purchase program, and all other
veterans programs supported by the state.
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4)Directs that beginning January 1, 2017, and each year after,
the Inspector General shall submit a report to the board and
the Legislature and make any recommendations he or she deems
necessary for improving the operations of the veterans
programs.
5)Authorizes the Inspector General to receive communications
from any individual who believes he or she may have
information that warrants a review or investigation of a
veterans program.
6)Authorizes, and in some instances requires, the IG to conduct
a review or investigation.
7)Mandates the establishment of a toll-free telephone number to
report alleged wrongdoing regarding veterans programs.
8)Repeals the provisions described above on January 1, 2020.
EXISTING LAW:
Military and Veterans code section 78.5 refers to the IG, "The
secretary shall conduct audits as required by Section 13402 of
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the Government Code, on internal controls of the department,
that shall be provided to the inspector general." The department
had an IG but the position, which was created in 1999, was
eliminated by budget action in 2004.
Creates the California Veterans Board (Board). Members of the
Board are appointed by the Governor. The Board advises the
department and secretary on policies for operations of the
department. The Board has access to all documents and employees
of the department.
Creates the California State Auditor's office with broad
authority. The State Auditor promotes the efficient and
effective management of public funds and programs by providing
to citizens and the State independent, objective, accurate, and
timely evaluations of state and local governments' activities.
FISCAL EFFECT: Unknown at this time.
COMMENTS: There is not an Inspector General within the
department. State correctional agencies have an Inspector
General. Most federal agencies have an Inspector
General. The Military Department has an Inspector General.
Previous to the passage of AB 92, the department had an internal
auditor position. The Inspector General position was created by
AB 92 (Floyd) then eliminated in 2004 by SB 1111, a budget bill.
This bill is largely modeled on AB 92. The Senate Committee on
Veterans Affairs analysis of AB 92 from June of 1999 contains
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this:
The author states that a lack of oversight over the California
Department of Veterans Affairs has resulted in major problems
in the administration of the Cal-Vet farm and home loan
program and the operation of the two state veterans homes.
Unfortunately, though the focus has shifted away from the Farm
and Home Loan Program, the rationale, that there is a lack of
internal oversight at CalVet which has resulted in
inefficiencies, cost overruns, and mis-management concerns, is
still valid.
Moreover, since 1999, the world has changed tremendously and, in
particular, for most of the first decade of the 2000's the
United States has been in protracted armed conflict in Iraq and
Afghanistan as well as in shorter conflicts throughout the
world. These conflicts have and continue to produce many
veterans who reside in California, currently approximately 1.8
million.
Keeping pace so that it might continue to serve California
veterans well, the department has also grown. In particular,
the then two state veterans homes have grown to a system of
eight, The Veterans Homes range in size from 60 residents on 20
acre campuses to over 1,000 residents on a 500 acre campus. Each
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Home is distinctive within its region and offers its own unique
environment, levels of care combinations. Furthermore, there
are now two state veterans cemeteries operated by CalVet and a
third site is being evaluated.
There are far too many activities the department performs to
list them all. However, some of the larger roles are: Approving
schools' eligibility for GI Bill funds, the CalVet Homeless
Veteran Outreach Support Program, the California Veterans
Registry, the DVBE Advisory Council, programs for incarcerated
veterans. a Veterans Services division which performs many
functions including administering funding for the County Veteran
Service Officers, programs to reach women, Lesbian, Gay,
Bi-Sexual, and Transgender (LGBT) Veterans, and Minority
Veterans. In summary, the department is extremely active and
supporting veterans in a host of ways.
Unfortunately the department has been scrutinized for issues
including administration of Morale Welfare, and Recreation
funds, cost overruns on the Enterprise Wide Veteran Healthcare
Information System, questions concerning Veterans Homes' not
being at full capacity, the lack of the requisite kitchen at the
West Los Angeles Home (including a series of several pieces in
the Los Angeles Times), the overall cost of the Homes, a dearth
of implementing regulations, and other matters.
There have been multiple recent changes in executive level
leadership at the department including the departure of the
previous Secretary and Undersecretary. Most recently a new
Acting Secretary was appointed. The Acting Secretary has
publicly shared that her mission is one of organizational change
and her goals include improving the administration and improving
efficiencies at the department.
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The IG concept is to have an internal person authorized to
investigate most or all matters, but having that person be able
or required to report outside the chain of command as necessary.
This allows the IG to both internally assist, in this case the
Secretary within the organization, and to report externally,
directly to the Governor or Legislature, when necessary. Given
the growth in the department's role and number of the programs
it supports, the rapid growth of the Homes System, and the
questions on various issues outlined above, the IG seems
warranted here. This bill contains a sunset provision so that
the utility of the IG will be reevaluated by the Legislature.
There is recent precedent in the California Military Department.
In response to a series of negative incidents, in 2012 SB 921
(Lieu) the California Military Whistleblower Protection Act,
signed by the Governor September 28, 2012, created an inspector
general in the California Military Department at a time when a
new Adjutant General was being appointed with the mission of
organizational change.
REGISTERED SUPPORT / OPPOSITION:
Support
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None on File.
Opposition
None on File.
Analysis Prepared by:John Spangler / V.A. / (916) 319-3550