BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1570
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1570 (Veterans Affairs Committee) 
          As Amended  June 2, 2009
          Majority vote 

           VETERANS AFFAIRS    5-1         APPROPRIATIONS      10-0        
           
           ------------------------------------------------------------------ 
          |Ayes:|Salas, Lieu, V. Manuel    |Ayes:|De Leon, Ammiano, Davis,   |
          |     |Perez, Saldana, Yamada    |     |Krekorian, Hall, John A.   |
          |     |                          |     |Perez, Price, Skinner,     |
          |     |                          |     |Solorio, Torlakson         |
          |-----+--------------------------+-----+---------------------------|
          |Nays:|Huber                     |     |                           |
          |     |                          |     |                           |
           ------------------------------------------------------------------ 
           SUMMARY  :  Requires each entity of state government to give  
          preference to a qualified entity when awarding a grant for a  
          project that would provide, or when entering into a contract to  
          provide, social services to veterans.  Specifically,  this bill  :   


          1)Requires a qualified entity to submit with the application for  
            the grant or the bid for the contract a certification, as  
            provided, from the California Department of Veterans Affairs.

          2)Defines a nonprofit as a 501 (c)(3).

          3)Defines the types of services that are being provided by the  
            nonprofit seeking a preference as a mental health services, or  
            employment and job training services.

          4)Allows CDVA to audit nonprofit organization that they have  
            certified and established a mechanism for sharing audit  
            information.

          5)States CDVA may certify nonprofit that have current  
            certification and licenses from and other state entity.

          6)Establishes a fund within the State Treasury, to accept  
            donation that will be used to implement this article.

           EXISTING LAW  states that it is the intent of the Legislature to  
          encourage state agencies, cities, counties, districts, and other  
          political subdivisions to purchase goods manufactured by, and  








                                                                  AB 1570
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          services provided by, a nonprofit veteran service agency  
          whenever it is both feasible to do so and the location of the  
          nonprofit veteran service agency makes the purchases reasonably  
          convenient.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill would mainly involve grants or contracts  
          for veterans services entered into by the DVA, the Employment  
          Development Department, the Department of Mental Health, the  
          Department of Housing and Community Development, and the  
          Department of Alcohol and Drug Programs.  Each department would  
          probably incur minor absorbable administrative costs to revise  
          their criteria for awarding grants and contracts to account for  
          the preference to be provided to qualified entities pursuant to  
          this bill.  

           COMMENTS  :  The intent of AB 1570 is to ease the problem of the  
          lack of continuity of care and services by establishing a high  
          standard certification process for community based veterans'  
          service organizations (CBOs) and giving those who meet it a  
          preference when seeking state grants intended for veterans.   
          This bill is intended to apply to 501(c)(3) non profits veterans  
          organizations who provides services, such as housing assistance,  
          substance abuse, mental health, and services case management.

          The committee has stated that it is their intent to enact  
          legislation that would ensure the selection process used to  
          determine whether state funds that are intended for veterans  
          actually go to veterans groups with a track record of providing  
          specific community reintegration services for veterans.   This  
          would be accomplished by directing the state to award grants for  
          a project that provides specified services, or enter into a  
          contract to provide specified services to veterans.  The intent  
          of this legislation is to create a preference for awarding the  
          grant to, or entering into a contract with, an entity that meets  
          the specified criteria for community based veterans' service  
          organization.

          The definition of qualified entity in the bill seeks to give  
          non-profit organizations with a track record of providing  
          services to veterans as their main focus, an advantage when  
          applying for state grant funds intended for use by veterans.  
          This is important because the lack of funding breaks the  
          continuity of service and resources.  These funding sources are  
          necessary for the survival of CBOs who provide services to  








                                                                  AB 1570
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          veterans by bringing together a continuum of services, such as  
          housing assistance, substance abuse, mental health, and case  
          services management. 

          Existing CBOs that provide these specialized services to  
          veterans are operated and housed in facilities built and  
          maintained with a combination of federal, state and local  
          dollars for veterans' services.  When veteran specific funds are  
          spread amongst entities that do not have servicing veterans as  
          their primary purpose those funds are lost by those  
          organizations serving veterans as their primary function.  This  
          may cause staff lay offs, service disruptions and veterans'  
          recoveries to be interrupted.
           

          Analysis Prepared by  :    Eric Worthen / V. A. / (916) 319-3550 


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