BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2703
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 2703 (Quirk-Silva) - As Amended:  May 5, 2014 

          Policy Committee:                              Veterans  
          AffairsVote: 8-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill continuously appropriates $6 million from the General  
          Fund to the California Department of Veterans Affairs (CalVet)  
          for allocation to County Veterans Service Officers (CVSOs). 

          This bill also requires CalVet to create an CVSO allocation  
          formula by January 1, 2015, based upon performance standards  
          that encourage innovation and reward outstanding service by  
          CVSOs. 

          This bill contains an urgency clause stating the urgency is  
          necessary to provide for continuity of services critical to  
          successful reintegration of California's veterans, to increase  
          California's utilization of veteran benefits, and to ensure  
          veterans claims for benefits are processed in a timely manner. 

           FISCAL EFFECT  

          This bill continuously appropriates $6 million to CalVet for  
          CVSOs. 

          Continuous appropriations are contrary to the general policy of  
          this committee as continuous appropriations do not require  
          annual legislative review.

           COMMENTS  

           1)Rationale  . The author and proponents contend California could  
            leverage considerably more federal funds for veterans'  
            services with a modest increase in the state's contribution to  
            County Veterans Service Officers. 








                                                                  AB 2703
                                                                  Page  2


           2)Current CVSO funding  requires an annual budget appropriation.   
            Since 2004, the amount has been $2.6 million, save for  
            2013-14, when a one-time $3 million augmentation was  
            chaptered. The governor's 2014-15 budget proposes $2.6  
            million.

           3)CVSO Background  . CVSOs are local agencies that help veterans  
            and their families obtain benefits and services.  They act as  
            the CalVet's network for claim initiation and development and  
            help draw down significant federal funding.     

            SB 608, Statutes of 1997, requires the Department of Veterans  
            Affairs to annually determine the amount of new or increased  
            monetary benefits paid to eligible veterans by the federal  
            government that were attributable to the assistance of county  
            veterans service officers, and requires the Department of  
            Finance to consider an increase in the annual budget for  
            county veterans service officers, in an amount not to exceed  
            five million dollars ($5,000,000), if justified.

           4)Prior Legislation  . There have been numerous efforts to  
            increase annual state support for CVSOs. Most recently:

             a)   SB 296 (Correa), 2013, which appropriated $9 million,  
               was held in Senate Appropriations.

             b)   AB 1209 (Cook), 2011, which appropriated $7.3 million,  
               was held in Assembly Appropriations. 

             c)   SB 419 (Veterans Committee), Statutes of 2009, contained  
               legislative intent that the annual state budget appropriate  
               up to $11 million for CVSOs.


           Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081