BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 557
                                                                  Page  1

          Date of Hearing:   April 26, 2011

                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
                                 Paul J. Cook, Chair
               AB 557 (J.A. Perez) - As Introduced:  February 16, 2011
           
          SUBJECT  :   Veterans: National Guard: California Interagency 
          Council on Veteran Services and Programs.

           SUMMARY  :   This bill creates the California Interagency Council 
          on Veteran Services and Programs, bringing together key 
          stakeholders with the goal that the state's veterans service 
          programs are administered and integrated with maximum efficacy 
          and efficiency.
           
           EXISTING LAW: This bill adds a new section to the Military and 
          Veterans code as: SECTION 1. Article 8.3 (commencing with 
          Section 999.90), Chapter 6 of Division 4.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  : California is home to more than 2 million veterans, 
          representing 9 percent of the total U.S. veteran population.  
          Furthermore as the Nation draws down military presence in the 
          Middle East, California is on the verge of experiencing the 
          return of thousands of servicemembers who will need to be 
          reintegrated back into the workforce and the community, an 
          estimated 30,000 annual discharges from the active military, 
          many of whom will be at increased risk of joblessness and 
          unemployment, PTSD and mental health issues, homelessness, and 
          suicide.  

          This bill implements one of the primary findings from a 2009 
          audit by the Bureau of State Audits (the "Audit") of the 
          California Department of Veterans Affairs (Department).  The 
          Audit found that the Department provides few direct services to 
          veterans (outside of its operation of six veteran homes and the 
          CalVet home loan program) and that the Department has limited 
          interaction and few formal agreements with other state agencies 
          and departments that could provide additional services to 
          veterans if done so in a coordinated and efficient manner.  The 
          Department has made efforts to improve in this area as evidenced 
          by recent MOUs with various stakeholders.  However, the Auditor 
          recommended that Department adopt a more systematic process for 
          identifying and prioritizing the entities with which the 








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          Department collaborates in order to adequately identify the 
          service providers and stakeholders that could assist the 
          Department in its efforts to increase veterans' awareness of 
          available benefits and programs.    

          Another key finding from the Audit confirmed that California's 
          veterans participate in federal disability and pension benefits 
          at rates that are significantly lower than those in other states 
          with large veteran populations.   Of the $7.1 billion spent by 
          the United States Department of Veterans Affairs in California 
          in federal fiscal year 2008, $3.15 billion was in disability 
          compensation and pension payments to veterans.  These disability 
          payments are direct to the veterans and generate a significant 
          contribution to California's economy, averaging (according to 
          the Audit) about $9,800 annually for each veteran receiving 
          benefits.  Unfortunately, the Auditor estimated that only 12.86 
          % of eligible veterans in California participate in these 
          programs, which trails the national average of 13.94%.  This is 
          also significantly lower than that of other states with large 
          veteran populations such as Texas and Florida, which have 
          participation rates of 16.73% and 14.88%, respectively.  
          California's Legislative Analyst's Office estimated that if 
          California could increase its participation rate to the national 
          average, $220 million in benefit payments could be returned to 
          the state and local economy and paid to our resident veterans 
          and who need that money to support themselves and their 
          families.  

          According to the author: 

          ÝT]his legislation has been introduced to establish the 
          California Interagency Council on Veteran Services and Programs, 
          which among other duties, would bring together key state 
          agencies and departments, federal officials, legislative 
          representatives, local governments and stakeholder organizations 
          to ensure that the state's programs that serve veterans are 
          efficiently administered and properly integrated with federal 
          and local programs.  Budget cuts to CVSO's and to other state 
          outreach efforts necessitates even greater collaboration and 
          coordination amongst government and non-government stakeholders, 
          which the establishment of this council would assist with and 
          support.  Areas of emphasis will include: maximizing the use of 
          federal funding available to support veteran programs; veteran 
          housing and homelessness; mental health services; employment and 
          job training; and increasing the state's participation rate in 








                                                                  AB 557
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          collecting federal veteran disability compensation and pension 
          benefits.   

          This bill creates a forum and a structure, bringing together 
          those stakeholders who are involved in programs that serve 
          veterans and is in alignment with the recommendation of the 
          Audit for a more systematic process for identifying and 
          prioritizing the Department's collaborative efforts .  It is 
          reasonable to conclude that the Council will at the least 
          promote communication and coordination between the stakeholders 
          who work with and support veterans.  It will also provide a 
          single place where interested parties and the public may reach 
          multiple veterans service providers/stakeholders at once.  The 
          meeting frequency of the Council decreases over time as 
          foundational efforts are completed; it is not unduly burdensome 
          on the participants.

          Author's Amendments:  The author has expressed an interest in 
          amending the bill:
          1.   To include the California Department of Corrections as a 
          member of the Council
          2.   To set as chair of the Council the Secretary of the 
          Department; and
          3.   To add any co-authors who wish to be added to the bill.

           Related Legislation:  AB 1569 (2009, Committee on Veterans 
          Affairs) This bill would have created a similar council but did 
          not pass through the Senate.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support: 

           Veterans of Foreign Wars of the United States, Department of 
          California
          Veterans Village of San Diego
          American Legion-Department of California
          AMVETS-Department of California
          California Association of Veterans Service Officers
          California Association of Veteran Service Agencies
          California State Commanders Veterans Council
          Military Officers Association of America, California Council of 
          Chapters
          Vietnam Veterans of America-California State Council
          United States Veterans Initiative








                                                                  AB 557
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          Vietnam Veterans of California, Inc.
          New Directions, Inc. 
          Swords to Plowshares

           Opposition: 
           
          None.
           
          Analysis Prepared by  :    John Spangler / V. A. / (916) 319-3550