BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2311 (Bradford) - General assistance: employable veterans.
          
          Amended: May 23, 2014           Policy Vote: Human Services 4-0
          Urgency: No                     Mandate: Yes
          Hearing Date: August 4, 2014                            
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: AB 2311 would require a county to, effective July  
          1, 2015, expand eligibility for General Assistance (GA) to  
          honorably discharged employable veterans through an exemption  
          from the prohibition on providing GA to employable individuals  
          for more than three months in a 12-month period, as specified.  
          This bill would allow a county to opt out of the extended  
          eligibility period for GA to employable veterans through the  
          enactment of an ordinance by the county board of supervisors.

          Fiscal Impact: 
              Likely minor one-time costs (Local) for counties to enact  
              an ordinance opting out of the provision of extended  
              eligibility for GA to employable veterans. As the provision  
              to enact a county ordinance is optional, the local costs  
              incurred are estimated to be non-reimbursable.
              Potentially significant ongoing state-reimbursable costs in  
              the millions of dollars (General Fund) for counties to  
              provide additional GA benefits to employable veterans. GA  
              benefits for every 1,000-2,000 honorably discharged  
              employable veterans for an additional nine months would cost  
              about $2 million to $4 million based on an average GA  
              benefit of $228 per month. These costs are estimated to be  
              reimbursable by the state until a county opts out of the GA  
              expansion, which is optional.

          Background: Existing law requires every city and county to  
          provide relief and support to all residents who are indigent,  
          incapacitated by age, disease, or accident, and not supported  
          and relieved by their relatives or friends, by their own means,  
          or by state hospitals or other state or private institutions.  
          Existing law establishes a county's right to adopt requirements,  
          as specified, for determining a person's eligibility for GA. 








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          Existing law authorizes a county to prohibit an employable  
          individual from receiving GA for more than three months in any  
          12-month period, as specified, if the individual has been  
          offered an opportunity to attend job skills or job training  
          sessions. (WIC � 17001.5(a)(4))

          Each county GA program is 100 percent county-funded, with no  
          state or federal share of costs. Based on caseload and  
          expenditure data for May 2014 from the GR 237 report, the  
          statewide average monthly GA caseload is about 110,000 cases,  
          and the statewide average monthly GA payment is $228, although  
          the average monthly GA benefit per county varies significantly.

          Proposed Law: This bill would be cited as the GA "Thank You For  
          Your Service" Act of 2014. Specifically, this bill:
                 Requires a county, effective July 1, 2015, to expand  
               eligibility for GA benefits to honorably discharged  
               employable veterans through an exemption from the  
               prohibition on providing GA to employable individuals who  
               have been offered an opportunity to attend job skills or  
               job training sessions for more than three months in a  
               12-month period, whether or not the months are consecutive.
                 Authorizes a county board of supervisions to enact an  
               ordinance providing that any employable individual is  
               subject to the limitation of GA benefits under existing law  
               notwithstanding the fact that an individual is an  
               employable veteran who was honorably discharged from the  
               armed forces.

          Staff Comments: By requiring a county to extend GA benefits to  
          honorably discharged employable veterans for an extended period  
          of time, this bill creates a state-mandated local program,  
          resulting in potentially significant ongoing state-reimbursable  
          costs in the millions of dollars (General Fund). While it is  
          unknown how many employable veterans would be impacted by the  
          provisions of this bill, the U.S. Department of Veterans Affairs  
          estimates nearly 1.8 million veterans in California. Ongoing  
          costs to provide GA benefits for every 1,000 to 2,000 employable  
          veterans for an additional nine months would cost about $2  
          million to $4 million per year based on an average GA benefit of  
          $228 per month.

          While the provisions of this bill provide that county boards of  








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          supervisors may enact an ordinance opting out of the expansion  
          of GA benefits, because the provision to opt out is not  
          specifically linked to the operative date of the provision of  
          mandated GA benefits, it is estimated that any increased costs  
          incurred by a county would potentially be subject to  
          reimbursement by the state until a county chooses to opt out of  
          the GA expansion. As an example, a county enacting an ordinance  
          opting out of the GA expansion two years after the July 1, 2015,  
          operative date of the mandated expansion could potentially file  
          a claim for reimbursement with the Commission on State Mandates  
          for the two-year period prior to the enactment of the ordinance.

          Recommended Amendments: To address the fiscal concerns noted  
          above, the author may wish to consider amendments to delay  
          implementation of the expanded GA program eligibility to January  
          1, 2016, and provide a county board of supervisors with a  
          specified six-month period from July 1, 2015, to January 1,  
          2016, to either expand the GA program or retain the existing GA  
          program eligibility requirements. While the costs to enact an  
          ordinance would result in minor state-reimbursable costs,  
          providing counties with 12 months from the bill's enactment date  
          and a set six-month timeframe within which to act from the  
          section's operative date will provide counties with time to opt  
          out of the GA program expansion.   

             1.   On page 6, in line 11, after (A), insert:  (i)
              2.   On page 6, in line 11, strike out ",other than an",  
               strike out line 12 and in line 13, strike out "Forces,"
             3.   On page 6, in line 15, strike out "paragraph" and  
               insert:  subparagraph
              4.   On page 6, between lines 17 and 18, insert:  (ii) On or  
               after January 1, 2016, any prohibition adopted pursuant to  
               clause (i) shall not apply to an employable veteran who was  
               honorably discharged from the Armed Forces if the board of  
               supervisors of a county failed to take the action set forth  
               in subparagraph (B).
              5.   On page 6, in line 18, strike out "The" and insert:  On  
               or after July 1, 2015, but before January 1, 2016, the
              6.   On page 6, in line 20, after "in" insert:  clause (i) of  
             7.   On page 6, in line 22, strike out "armed forces" and  
               insert:  Armed Forces  

          Fiscal Impact (as proposed to be amended):
              Likely minor one-time costs (Local) for counties to enact  








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              an ordinance opting out of the provision of extended  
              eligibility for GA to employable veterans. As the provision  
              to enact a county ordinance is optional, the local costs  
              incurred are estimated to be non-reimbursable.
              Potential one-time minor state-reimbursable costs (General  
              Fund) for county boards of supervisors to enact an ordinance  
              to opt out of the expansion of GA benefits to employable  
              veterans.  
               Potentially significant local costs in the millions of  
              dollars (General Fund) for counties to provide additional GA  
              benefits to employable veterans. GA benefits for every  
              1,000-2,000 honorably discharged employable veterans for an  
              additional nine months would cost about $2 million to $4  
              million based on an average GA benefit of $228 per month.