BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1029


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          Date of Hearing:  April 28, 2015


                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS


                                 Jacqui Irwin, Chair


          AB 1029  
          (Frazier) - As Introduced February 26, 2015


          SUBJECT:  Veterans:  service providers


          SUMMARY:  Creates a certification program for charitable  
          organizations that provide certain specified service to veterans  
          and their families.  Specifically, this bill:  


          1)States certain Legislative findings and declarations:

             a)   To provide the public the means to determine which  
               charitable entities providing supportive services to  
               veterans meet certain minimum standards of cultural  
               competency and financial legitimacy.

             b)   To establish a voluntary certification program whereby  
               the Department of Veterans Affairs will certify that  
               certain charitable entities providing supportive services  
               to veterans meet minimum standards. 

             c)   That the Secretary of the Department of Veterans Affairs  
               consider whether it would be beneficial to the People of  
               the State of California to, in the future, establish a  
               uniform process for state contracting that provides a  
               preference to entities certified by the Department pursuant  
               to Section 999.75 under a state contract or grant for  








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               supportive services to veterans or their families. 

          2)Defines "Certified California Veteran Servicer Provider" to  
            mean an entity that is certified by the Department as having  
            an established history of providing supportive services, as  
            specified and that meets all of the following requirements:

          3)Provides supportive health and mental health services, small  
            business assistance, employment services, and job training  
            services to veterans.

          4)Demonstrates the knowledge, experience, and cultural  
            competency to provide supportive services to veterans and  
            their families.

          5)Demonstrates through audits and employment history the fiscal  
            and management capacity to capably perform supportive services  
            to veterans and their families.

          6)Is a nonprofit organization that is exempt from federal income  
            taxation as an organization described in Section 501(c)(3) of  
            the Internal Revenue Code.

          7)Demonstrates through the submission of appropriate supporting  
            data that the entity has effectively served the needs of  
            veteran or veteran family clients.

          8)Demonstrates that all required filings with the Secretary of  
            State, the office of the Attorney General, and the Franchise  
            Tax Board are current. 

          9)Demonstrates that the entity meets or exceeds the provisions  
            of California's Charity Solicitation Disclosure Law and  
            complies with the standards included in the California  
            Attorney General's Guide for Charities. 

          10)Mandates that Certified California Veteran Servicer Provider  
            shall provide to the department all of the following  
            up-to-date documents upon application for certification and at  








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            any time during the certification period on request and  
            reasonable notice by the department:

             a)   Articles of incorporation and all amendments to the  
               articles of incorporation.

             b)   IRS Letter of Determination.

             c)   Taxpayer identification number.

             d)   Independent audit reports dating back three years.

          11)Directs that the department shall maintain a list of  
            Certified California Veteran Servicer Providers on its  
            Internet Web site.

          12)States that a certification approved by the department shall  
            be valid for three years from the date the department accepts  
            credentials for certification unless the department  
            decertifies the Certified California Veteran Servicer  
            Provider.

          13)Clarifies that the department may accept current  
            certifications and licenses from any other state entity,  
            agency, or department as support for certification of a  
            Certified Veteran Service Provider pursuant to Section 999.75.  


          14)Specifies that the Department may accept an organization's  
            status as a Congressionally chartered Veterans Service  
            Organization as support for certification of a Certified  
            Veteran Service Provider pursuant to Section 999.

          15)Mandates that the department shall adopt such rules,  
            procedures, and regulations as necessary to decertify a  
            Certified Provider prior to the expiration of a current  
            certification when the Certified Provider no longer meets the  
            standards set forth in section 999.75.









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          EXISTING LAW:  Existing law contains some analogues, such as the  
          Disabled Veteran Business Enterprise Program, which as part of  
          the program has a certification by the Department of General  
          Services that a business meets the requirements to participate  
          in the program.  However, there is nothing in current code that  
          would certify a Veteran Service Provider in the way that this  
          bill would.


          FISCAL EFFECT:  Unknown.


          COMMENTS:  According to the author:


            Veterans comprise 25% or more of California's homeless  
            population. Tens of thousands of these individuals are  
            returning from wars in Iraq and Afghanistan with significant  
            physical and mental injuries. 





            The state provides resources to veterans in the form of grants  
            to non-profit agencies that provide housing, mental health,  
            substance abuse, case management and employment services.  
            However, as concern for the welfare of returning service  
            members has grown, so has the interest of an increasing number  
            of organizations to receive the small amount of grant dollars  
            available.













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            These scarce grant dollars are often going to organizations  
            with excellent grant writers, however, the actual  
            organizations have no background or experience to address the  
            unique needs of veterans; often times, they have no actual  
            base of clients to serve. 





            As a result, qualified veteran service organizations (with  
            long and proven histories of effectively serving veterans)  
            receive reduced funding and are forced to cut services to  
            veterans and lay off qualified staff.





            The criteria established by CalVet would help ensure that  
            state funding for veteran services grants would flow to  
            agencies that have a proven track record of excellence in  
            providing services to our veterans. In addition to improved  
            targeting of limited veteran resources, this bill will also  
            help address a long-term problem of con-artists who solicit  
            contributions from well-meaning but unaware Californians who  
            make donations to veteran organizations. Such organizations  
            drain grant resources without providing the necessary services  
            to veterans.


          This bill would create a certification for charitable entities  
          that serve veterans that the entity meets certain minimum  
          standards.  The scope of the certification is limited to  
          entities serving veterans with supportive: health and mental  
          health services, small business assistance, employment services,  
          and job training services.  These entities must demonstrate  
          knowledge, experience, and cultural competency to provide  
          supportive services to veterans and their families.








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          The language before the Committee is the result of much  
          discussion and collaboration between the author, staff, and  
          experienced veteran service providers.  It represents an attempt  
          to recognize that there is a particular value and special  
          expertise from having a proven track record of serving veterans  
          primarily or exclusively but that there are also experienced,  
          legitimate, high quality service providers who serve many  
          veterans but also serve other populations and have broader  
          missions.  


          The language is an attempt to provide a means for the public,  
          contracting officials, and others to know that certain entities  
          providing supportive services to veterans meet a certain minimum  
          acceptable level of quality, direct experience serving veterans,  
          and legitimacy. The language does not attempt to resolve the  
          further question of whether those entities serving veterans  
          exclusively should be preferred or recognized above others for  
          providing a level of service far above the minimum.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Association of Veteran Service Agencies




          Opposition










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          None on File. 




          Analysis Prepared by:John Spangler / V.A. / (916) 319-3550