BILL ANALYSIS Ó AB 1596 Page 1 Date of Hearing: April 27, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1596 (Mathis) - As Amended April 19, 2016 ----------------------------------------------------------------- |Policy | Veterans Affairs |Vote:| 7 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill appropriates $3 million over the next five years to the California Department of Veterans Affairs (CalVet) to provide grants and contracts to Veteran Services Organizations (VSOs) that provide specified services to veterans. This bill also requires VSOs to be active statewide and be registered with the Secretary of State and the Department of Justice. Finally, CalVet will be required to establish, by June 1, 2017, criteria and reporting requirements for VSOs with whom it contracts. AB 1596 Page 2 FISCAL EFFECT: In addition to the $3 million GF appropriation, there will be GF cost in the $200,000 for three staff to manage and monitor the grants and contracts. To a lesser degree, this annual cost will continue beyond the five years as the monitoring of contracts will continue beyond the term of the appropriation. Funding for County Veteran Service Officers (CVSOs) is provided in each year's Budget Act. The current Budget Act includes $5.6 million (GF), for 2015-16 and Governor proposes the same level of funding for next year. COMMENTS: 1)Background/Purpose. CVSOs are county agencies established to assist veterans and their families in obtaining benefits and services accrued through military service. California relies heavily on the CVSOs to reach and serve the approximately 1.8 million California veterans. (CalVet has a very small number of state employees that assist veterans with claims.) In California and throughout the country, in addition to CVSOs or their equivalent state government counterparts, VSOs assist veterans in filing claims. VSOs are not government entities, they are private, non-profit organizations that serve and advocate for veterans. According to the author, by comparison, California veterans are not receiving the same level of benefits and services as veterans in Texas or Florida. The author contends that by AB 1596 Page 3 offering competitive grants to VSOs, California can realize the same utilization rate as those states. 2)Comments: When the 2015-16 Governor Budget was introduced, it only included $2.6 million for CVSOs; however, by the time the Budget was enacted, this amount was increased to the current $5.6 million. It may be more appropriate to consider the proposed appropriation to VSOs within the Budget deliberations where other issues affecting veterans, such homelessness may be considered. Analysis Prepared by:Pedro Reyes / APPR. / (916) 319-2081