BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON VETERANS AFFAIRS
                             Senator Jim Nielsen, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 1029        Hearing Date:    6/23/15
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          |Author:    |Frazier                                              |
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          |Version:   |5/18/15    Amended                                   |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Wade Cooper Teasdale                                 |
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                       Subject:  Veterans: service providers.


           DESCRIPTION
            
          Summary:
           
          Creates a program to certify organizations that provide  
          specified services to military veterans and their families.

           Existing law:
           
          Provides benefits to veterans in the form of grants to  
          non-profit agencies to provide housing, mental health, substance  
          abuse, case management and employment services to deserving  
          veterans. There are no state standards for these veteran service  
          providers.
           
          This bill:
             
          1)Posits legislative findings and declarations supporting the  
            establishment of a process for certifying veteran service  
            providers.

          2)Defines "certified California veteran servicer provider" as an  
            entity that certified by the California Department of Veterans  
            Affairs (CalVet) as having an established history of providing  
            supportive services, as specified and that meets all of  
            specific requirements:

             a)   Provides supportive services to veterans and their  







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               families in at least three of the following areas: (1)  
               housing assistance, (2) health, (3) mental health, (4)  
               small business assistance, (5) employment assistance, and  
               (6) job training.

             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 provide these services to  
               veterans and their families.

             d)   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.

             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. 

             g)   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.

          3)Requires a "certified California veteran servicer provider" to  
            provide to CalVet all of the following up-to-date documents  
            upon application for certification and at any time during the  
            certification period on request and reasonable notice by  
            CalVet:

             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.

          4)Requires CalVet to maintain a list of certified providers on  
            its departmental internet web site.








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          5)Provides that a certification approved by CalVet is valid for  
            three years from the date CalVet accepts credentials for  
            certification unless CalVet decertifies the certified  
            provider.

          6)Clarifies that CalVet may accept current certifications and  
            licenses from any other state entity, agency, or department as  
            support for certification of a certified veteran service  
            provider, as per MVC Section 999, as specified.

          7)Specifies that CalVet may accept an organization's status as a  
            congressionally-chartered veterans service organization as  
            support for certification of a Certified Veteran Service  
            Provider, as specified.

          8)Mandates that CalVet 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, as  
            specified.
           

          BACKGROUND
           
           Need for Veterans Benefits
           
          The imminent downsizing of the U.S. armed forces is expected to  
          increase significantly the number of military veterans  
          relocating to California during the next few years. These  
          veterans will range in age from their early twenties, men and  
          women who have served a single enlistment, to mid-career troops  
          in their thirties and early forties, whose career and retirement  
          planning are being upended. Most will join the prospective  
          workforce in a still-struggling California economy. Many will go  
          to college. Many will face physical, emotional, and family  
          challenges directly related to their military service. They will  
          increase the size of the younger age cohorts in the state's  
          veteran population, which already has unemployment rates beyond  
          that of the general population. Accordingly, a large percentage  
          will need assistance via veterans' benefit programs. Most  
          veterans' services are provided by the federal government, but  
          state and local agencies also provide an array of benefits.









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           Housing + Supportive Services
           
          According to a federal agency report to the Congress:
          1)A veteran is 50 percent more likely to be homeless than a  
            non-veteran. Although only eight percent of adults in the  
            United States are veterans, federal surveys suggest that  
            veterans represent up to 16 percent of America's homeless  
            population.

          2)Rates of homelessness among veterans living in poverty are  
            particularly high for veterans identifying as Hispanic/Latino  
            (1:4) or African-American (1:4).

          3)Two groups of homeless veterans - women and people between  
            ages 18 and 30 - are small in number. However, female veterans  
            and young veterans are at high risk of becoming homeless, and  
            both groups are growing within the overall veteran population.

          4)According to major point-in-time survey, nearly half of  
            homeless veterans on a given night were located in four  
            states: California, Florida, Texas, and New York. Only 28  
            percent of all veterans were located in those same four  
            states.
               (Source: "Veteran Homelessness: A Supplemental Report to  
               the 2009 Annual Homeless Assessment Report to Congress,"  
               U.S. Dept of Housing and Urban Development/U.S. Department  
               of Veterans Affairs.)

          In reviewing AB 639 (J. Pérez, 2013), the Assembly Committee on  
          Housing and Development observed:

               Despite California's high number of homeless veterans, the  
               state does not have any programs that are directly targeted  
               at serving this population, or at serving lower-income  
               veterans who are at risk of homelessness. HCD offers  
               various programs that support the development of  
               multifamily rental housing for low income Californians,  
               including supportive and transitional housing, but none are  
               veteran-specific.

          AB 639 (J. Pérez, 2013) became Proposition 41 on the June 2014  
          statewide ballot and received voter approval. In enacting the  
          VHHP, the measure authorizes issuance of $600 million in general  
          obligation bonds to fund the acquisition, construction,  








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          rehabilitation, and preservation of multifamily supportive  
          housing, affordable transitional housing, affordable rental  
          housing, and related facilities for veterans and their families.

          The law requires CalVet, the Department of Housing and Community  
          Development (HCD), and California Housing Finance Agency (CHFA)  
          to jointly design the program, which then will be implemented by  
          HCD. Affordable housing developers then partner with veterans  
          service providers to build affordable housing dwellings,  
          including supportive housing, which will provide housing and  
          services to veterans who are homeless or who have extremely low  
          income to assist the veterans to achieve housing stability and  
          improve self-sufficiency. In February 2015, HCD adopted its  
          initial program guidelines and issued a notice of funds  
          available.

           Examples: Governmental Certification in Veteran Programs
           
          Under federal law, the United States Department of Veterans  
          Affairs (USDVA) certifies and accredits veteran service officers  
          (VSO). VSOs are trained, accredited professionals, who can  
          legally represent veterans in the federal benefits claims  
          process, and also help connect veterans with state- and  
          locally-provided benefits.

          Under state law, the Department of General Services certifies  
          disabled veteran business enterprise contractors,  
          subcontractors, and suppliers for participation in the  
          California Disabled Veteran Business Enterprise (DVBE) state  
          contracting program.

          Under federal and state law, the California State Approving  
          Agency for Veterans Education (CSAAVE) certifies veterans'  
          education and training programs to determine if they provide  
          sufficient quality and benefit to veteran students that the  
          students should be able to expend their GI Bill resources on the  
          programs. CSAAVE operates under contract with USDVA and acts as  
          a state proxy for the federal government.
           
          COMMENT
            
            1)Author's Statement  :  
           
          "The state provides resources to veterans in the form of grants  








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          to non-profit agencies that provide housing, mental health,  
          substance abuse, case management and employment services;  
          (however) . . . an increasing number of organizations . . .  
          receive the small amount of grant dollars available.

          "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."
           
            2)Related Legislation
           
          SB 112 (Roth, pending Senate Committee on Veterans Affairs,  
          2015) establishes a California Veterans' Bill of Rights, which  
          specifies that veterans possess the rights to housing,  
          education, job training, and physical and mental health  
          services, as prescribed.

          SB 130 (Roth, pending Senate Committee on Veteran Affairs, 2015)  
          requires specified state departments to establish and implement  
          a grant process that will fund supportive services, as defined,  
          for veterans, who reside in housing provided by the State via  
          the VHHP Act.

          SB 384 (Leyva, pending Senate Committee on Transportation and  
          Housing, 2015): To help meet the specific housing needs of  
          underserved veterans, sets aside a percentage of any state funds  
          being used to acquire, construct, rehabilitate or preserve  








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          multifamily housing units for veterans, in general.

          SB 689 (Huff, pending Senate Committee on Transportation and  
          Housing, 2015): regarding the VHHP Act, requires prioritization  
          given to applications for proposed housing projects that would  
          maintain a qualified mental health professional, as defined, on  
          staff or on contract for services.

          AB 639 (J. Pérez, Ch. 727, Stats. 2013) establishes the Veterans  
          Housing and Homeless Prevention Bond Act of 2014, which  
          authorizes issuance of $600 million in general obligation (GO)  
          bonds to fund the acquisition, construction, rehabilitation, and  
          preservation of multifamily supportive housing, affordable  
          transitional housing, affordable rental housing, and related  
          facilities for veterans and their families, if approved by the  
          voters at the June, 2014, statewide election. (As Proposition  
          41, the measure was approved by the voters 65.4% to 34.6%.)


           POSITIONS
           
          Sponsor:  California Association of Veteran Service Agencies

          Support:  None received (except Sponsor)

          Oppose:   None received


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