BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1029


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          ASSEMBLY THIRD READING


          AB  
          1029 (Frazier)


          As Amended  May 18, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Veterans        |8-1   |Irwin, Mathis,       |Chávez               |
          |Affairs         |      |Alejo, Brough,       |                     |
          |                |      |Brown, Daly,         |                     |
          |                |      |Frazier, Salas       |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |15-0  |Gomez, Bigelow,      |                     |
          |                |      |Bloom, Bonta,        |                     |
          |                |      |Calderon, Chang,     |                     |
          |                |      |Eggman, Gallagher,   |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Holden, Quirk,       |                     |
          |                |      |Rendon, Wagner,      |                     |
          |                |      |Weber, Wood          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
           ------------------------------------------------------------------- 










                                                                      AB 1029


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


          1)Makes certain Legislative findings and declarations as  
            specified: 
             a)   Declares the intent of the Legislature 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.
             b)   Declares the further the intent of the Legislature 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 Military and Veterans  
               Code Section 999.75 under a state contract or grant for  
               supportive services to veterans or their families.


          2)Defines certified California veteran service provider as an  
            entity that is certified by the department as having an  
            established history of providing supportive services and that  
            meets all of the following requirements:
             a)   Provides at least three of the following supportive  
               services: housing assistance, health services, mental health  
               services, small business assistance, employment services, and  
               job training services to veterans and their families.
             b)   Demonstrates the knowledge, experience, and cultural  
               competency to provide supportive services to veterans and  
               their families. 


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









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             d)   Is a nonprofit organization that is exempt from federal  
               income taxation as an organization described in Internal  
               Revenue Code Section 501(c)(3) or Section 501(c)(19).


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


             f)   Demonstrates that all required filings with the Secretary  
               of State, the office of the Attorney General, and the  
               Franchise Tax Board are current.  Demonstrates that the  
               entity meets or exceeds the provisions of Business and  
               Professions Code Division 7, Part 3, Chapter 1, Article 1.3  
               (commencing with Section 17510) and complies with the  
               standards included in the Attorney General's Guide for  
               Charities. 


          3)Mandates that a certified California veteran service provider  
            shall provide to the department specified current documents upon  
            application for certification and at any time during the  
            certification period on request and reasonable notice by the  
            department:
          4)States that in order to obtain certification as a certified  
            California veteran service provider, the   applicant shall apply  
            to the department, in a form and manner as required by the  
            department.


          5)Mandates that beginning July 1, 2017, the department shall begin  
            processing and approving or rejecting all applications on the  
            basis of the requirements specified.


          6)Directs the department to maintain a list of certified  
            California veteran service providers on its Internet Web site,  








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            including the type of supportive services provided by the  
            providers.


          7)Directs that on or before April 1, 2017, the department shall  
            provide the Committee on Veterans Affairs in both houses of the  
            Legislature with a progress report on the status of the  
            implementing regulations required by this bill.


          8)Clarifies that 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 service provider.


          9)Authorizes the department to accept current certifications and  
            licenses from any other state entity, agency, or department in  
            order to provide a certification of a certified California  
            veteran service provider as specified.


          10)Authorizes the department to accept an organization's status as  
            a congressionally chartered veterans service organization as  
            support for certification as a certified California veteran  
            service provider.


          11)Mandates that no later than July 1, 2017, the department shall  
            adopt rules, procedures, and regulations as necessary to  
            decertify a certified California veteran service provider.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:  Ongoing cost of approximately $100,000 (General Fund)  
          to the Department of Veterans Affairs to promulgate regulations  
          the first year, and provide and renew the three-year  
          certification, decertify bad actors, and maintain a current list  
          of certified organizations after the first year. 








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          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.


            ? 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; the certification will be that such an 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 a certain level of knowledge, experience, and cultural  
          competency to provide supportive services to veterans and their  
          families.


          The language in the current version of this bill is the result of  








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          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.




          Analysis Prepared by:                                               
          John Spangler / V.A. / (916) 319-3550  FN: 0000493