BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1029 (Frazier) - Veterans:  service providers
          
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          |Version: June 21, 2016          |Policy Vote: V.A. 5 - 0         |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Debra Cooper        |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  AB 1029 would create a program to certify California  
          veteran service providers, as specified, and require the  
          Department of Veterans Affairs (CalVet) to maintain a list of  
          certified veterans service providers on it Internet Web site.


          Fiscal  
          Impact:  
           Estimated costs to CalVet of $219,000 in fiscal year 2016-17  
            to draft the regulations and procedures before certification  
            can begin. (GF)


           Significant costs of approximately $900,000 in fiscal year  
            2017-18 and ongoing costs of $866,000 per year for processes  
            to certify and decertify providers, to audit providers, and to  
            maintain the website. (GF)









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           Unknown costs for travel expenses for auditors to meet with  
            agencies to ensure they are meeting the certification  
            requirements. (GF)


           Potential revenue of up to $112,500 from collecting fees for  
            the certification process (assuming 150 agencies apply and the  
            full authorized fee of $750 is charged per application).


          Background:  Many veterans face homelessness, mental health, and general  
          health issues at a higher rate than the general population as  
          well as have difficulty with employment and college  
          preparedness. A 2015 report from the United States Department of  
          Veterans Affairs (USDVA) and the Department of Housing and Urban  
          Development (HUD) estimated that 24% of the nation's homeless  
          veterans were located in California (the largest population of  
          any state) and that 62% of California's homeless veterans were  
          living in unsheltered locations.
          According to the author, grant funding targeted to serving  
          veterans often go to organizations that "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."


          Though there is nothing that statutorily certifies a "Veteran  
          Service Providers," there are governmental certified programs  
          that provide services for veterans. For example:


           Veteran Service Officers (VSO)  - USDVA certifies and accredits  
          VSOs who can legally represent veterans in the federal benefits  
          claims process and can connect veterans with state and locally  
          provided benefits.


           California State Approving Agency for Veterans Education  
          (CSAAVE)  - certifies private educational institutions that seek  
          to receive federal GI Bill payments in return for providing  
          veterans' education and training programs.  








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          Disable Veteran Business Enterprise (DVBE)  - the Department of  
          General Services certifies disabled veteran business enterprise  
          contractors, subcontractors, and suppliers for participating in  
          the state contracting program.


          According to the bill's sponsor, the California Association of  
          Veteran Service Agencies, there are currently approximately  
          100-150 eligible providers in California that may apply for  
          certification under this bill.  




          Proposed Law:  
            This bill would:
           Define a "certified California veteran service provider" as an  
            entity that is certified by CalVet as having an established  
            history of providing supportive services and that meets all of  
            the following requirements:
             -    Provides at least two 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;
             -    Demonstrates, through the submission of appropriate  
               supporting data, that the veteran service provider has the  
               knowledge, experience, and cultural competency to provide  
               supportive services to veterans and their families;
             -    Demonstrates through audits and employment history the  
               fiscal and management capacity to capably perform  
               supportive services to veterans and their families;
             -    Is a nonprofit organization that is exempt from federal  
               income taxation as an organization described in Section  
               501(c)(3) or Section 501(c)(19) of the Internal Revenue  
               Code;
             -    Demonstrates through the submission of appropriate  
               supporting data that the entity has effectively served the  
               needs of veterans and their families;
             -    Demonstrates that all required filings with the  
               Secretary of State, the office of the Attorney General, and  
               the Franchise Tax Board are current








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           Require that a certified veteran service provider provide to  
            CalVet up-to-date documents, as specified.
           Require CalVet to begin processing and approving or rejecting  
            applications on January 1, 2018, and maintain a list of  
            certified California veteran service providers, as specified  
            on its Internet Web site.
           Require CalVet to report on the status of the regulations to  
            the Committee on Veterans Affairs in both houses of the  
            Legislature by April 1, 2017.
           Require an approved certification to be valid for three years  
            from the date CalVet accepts credentials for certification, as  
            specified.
           Require CalVet, no later than July 1, 2017, to adopt rules,  
            procedures, and regulations as necessary to certify a veteran  
            service provider, and to decertify a certified California  
            veteran service provider.
           Authorizes CalVet to adopt a fee of up to $750 to defray the  
            department's reasonable cost of certification.




          Related Legislation:  
            
          SB 689 (Huff, 2015) would have, regarding the Veterans Housing  
          and Homeless Prevention Bond Act of 2014, required  
          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.  
          This bill was held in the Senate Committee on Transportation and  
          Housing.

          AB 639 (J. Pérez, Chapter 727, Statutes of 2013) establishes the  
          Veterans Housing and Homeless Prevention Bond Act of 2014, which  
          authorizes issuance of $600 million in general obligation 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.)











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