BILL ANALYSIS �
SENATE COMMITTEE ON VETERANS AFFAIRS
Senator Ben Hueso, Chair
BILL NO: SB 296 HEARING DATE: 4/9/13
AUTHOR: Correa
VERSION: As Amended 4/1/13
FISCAL: Yes
VOTE: 27 (Appropriation)
SUBJECT
County Veterans Service Officers.
DESCRIPTION
Existing law: finds and declares that 50 percent of the amount
annually budgeted for county veterans service officers (CVSOs)
is approximately $11 million; and it is an efficient and
reasonable use of state funds to increase the annual budget for
CVSOs in an amount not to exceed $5 million.
Existing law :
Requires the California Department of Veterans Affairs
(CalVet):
o To determine annually the amount of new or
increased monetary benefits paid to eligible veterans
by the federal government attributable to the
assistance of CVSOs.
o On or before October 1 of each year, to
prepare and transmit its determination for the
preceding fiscal year to the Department of Finance and
the Legislature.
Requires the Department of Finance to review the above
annual determination in time to use the information in the
annual Budget Act for CalVet's budget for the next fiscal
year.
States the Legislature's intent that, after reviewing
the above determination, to consider an increase in the
annual budget for CVSOs in an amount not to exceed five
million dollars, if the monetary benefits to the state's
veterans attributable to the assistance of county veteran
service officers justify that increase in the budget.
This bill increases the annual General Fund contribution to
CVSOs to $7.6 million (from the current $2.6 million).
Existing law finds and declares:
That services provided by veterans service organizations
(VSOs) play an important role in CalVet's responsibilities
to assist veterans and their dependents and survivors in
presenting and pursuing claims against the United States,
and that it is an efficient and reasonable use of state
funds to provide compensation to VSOs for these services.
That compensation for VSOs shall not be implemented by
using the General Fund until the annual state appropriation
for CVSOs reaches a minimum of five million dollars.
This bill authorizes $1.4 million in grant funding to veterans
service organizations (VSOs) for claims assistance work.
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BACKGROUND
County Veterans Service Officers
CVSOs are trained, accredited professionals who help veterans
and their families navigate the complex federal VA benefit
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application processes. The CVSOs assist in claims initiation and
development and draw down significant federal dollars annually.
CVSO funding is derived from a combination of local and state
resources - with an understanding that it would be split 50/50
between the state and local governments. However, during the
past decade the state has funded less than half of the program.
As a result, a key veterans' resource is weakened and the state
loses an opportunity to draw down more federal dollars - perhaps
as much as $400 million more than it has been.
Currently, the counties provide about 85% of the money to fund
the CVSOs. The other 15% ($2.6 million) is provided by the
state. This "Local Assistance" allocation has remained roughly
the same for 18 years and is inadequate to properly fund the
CVSOs.
Veterans Service Organizations
VSOs are non-profit organizations dedicated to supporting
veterans and their families. Among the better known are the
American Legion, Disabled American Veterans, Veterans of Foreign
Wars, AMVETS, and Vietnam Veterans of America. Most are
national, but usually have state or regional affiliates.
Some VSOs are congressionally chartered and have legal federal
recognition or approval for the purposes of preparing,
presenting, and prosecuting claims under laws administered by
the United States Department of Veterans Affairs (USVA), as
provided in Section 5902, Title 38 of the U.S. Code and in
Subsections 14.628(a) and (c) of 38 Code of Federal Regulations.
[Non-chartered (and some chartered) VSOs also offer aid to
veterans, but may not offer the same level of accredited claims
assistance. The USVA advises individuals seeking to rely only on
information found in the USVA's Office of General Counsel (OGC)
web-based search for accredited attorneys, claims agents, or VSO
representatives.]
Like CVSOs, accredited VSO service officers are specially
trained to provide expert assistance with federal VA claims,
free of charge, to veterans and their families. VSO service
officers often coordinate with the CVSOs in veteran's claims and
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outreach. State funding for VSOs is authorized under previous
legislation, but has never been appropriated because existing
state law blocks VSO funding until the annual state
appropriation for CVSOs reaches a minimum of five million
dollars.
COMMENT
1. Author comments : CalVet reports that, since 1995, the
state's CVSOs have obtained $3.65 billion in federal
veterans' benefits for California veterans and their
dependents. At a cost of only $38 million from the State
General Fund, that constitutes an approximately 90-fold
increase on investment for the state and pours into local
economies.
During Fiscal Year 2011-2012, California CVSOs set a
new-veterans benefits record by garnering $346,727,459 in
one-year benefit payments, which are paid directly to
qualifying veterans. That accomplishment bests the previous
fiscal year's total by nearly 6%. In addition to improving
the lives of families, the dollars veterans benefits bring
into the state also help improve local economies. These
payments continue annually for the lifetime of the veteran
or other qualified, veteran-related recipients.
2. Sponsor comments : For every dollar spent by the state on
CVSOs, $100 is brought into the state in few federal
monies. Many veterans and their dependents, by virtue of
their military service, are entitled to pension,
disability, health care, educational, and burial benefits.
The USVA eligibility requirements are very complicated and
a veteran's own efforts to qualify for them often are
unsuccessful. For over 60 years, CVSOs have been helping
veterans obtain their benefits, bringing, on average, over
$200 million in federal funds into the state's local
economies annually. In addition, providing earned federal
benefits to veterans allows these veterans to be diverted
from state- and local-funded programs, which helps protect
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state taxpayers.
Committee staff comments : Because of the lack of support
and help the state has given veterans in attaining
benefits, there have not been enough CVSOs hired to help
all the veterans in California file their claims. Not
surprisingly other groups, particularly the VSOs, have
sought to fill the gap in assisting veterans. Over time,
the VSOs have also asked the state for money to fund their
efforts. The end result was that both CVSOs and VSOs were
competing for the same modest pot of state money.
Eventually an agreement was reached that - once the CVSOs
received their full five million dollar funding - a joint
effort would be launched to help all organizations provided
accredited VA claims assistance receive funding to help
relieve the backlog of veterans' claims in California. The
agreement resulted in Section 699.5 of the Military and
Veterans Code, which references Section 972.1 of the code.
Note: Neither CVSOs nor VSOs receive any federal funding to
compensate for the claims assistance they provide to
veterans at no charge to the veteran.
3. Related Legislation :
SB 419 (Senate Veterans Affairs Comm, Ch. 48, Stats. 2009)
Revises findings and declarations in existing law by
declaring that 50 percent of the amount annually budgeted
for CVSOs is (should be) approximately $11 million (rather
than the existing $5 million). Sunsets after January 1,
2016. Only becomes operative if SB 418 (Senate Veterans
Affairs, 2009) is chaptered. This majority-vote bill
contained no appropriation, and was not keyed fiscal.
Senate 36-0; Assembly 76-0.
SB 418 (Senate Veterans Affairs Comm, Ch. 48, Stats. 2009)
Revises legislative findings and declarations in existing
law with regard to the use of General Fund monies for
services provided by veterans service organizations by
clarifying that the General Fund monies shall not be
allocated until the annual budget for CVSOs reaches $5
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million. This majority-vote bill contained no
appropriation, and was not keyed fiscal. Senate 37-0;
Assembly 74-0.
SB 1778 (Senate Veterans Affairs Comm, vetoed, 2008)
Changes findings and declarations by increasing the amount
budgeted for CVSOs from $5 million to $11 million. This
bill was not an appropriation. Senate 37-0; Assembly 75-0.
Governor's veto message: "The historic delay in passing the
2008-2009 State Budget has forced me to prioritize the
bills sent to my desk at the end of the year's legislative
session. Given the delay, I am only signing bills that are
the highest priority for California. This bill does not
meet that standard and I cannot sign it at this time."
SB 1222 (Cedillo, held Senate Approps, 2008)
This bill would have (1) Increased funding for veterans
outreach by appropriating three dollars for every
California veteran. (2) Required that each three-dollar
appropriation be disbursed as follows: CVSOs - $2.35;
veteran service organizations - $0.50; and the Veteran
Services Division/CalVet - $0.15. Senate Veterans Affairs
5-0.
AB 1814 (DeVore, held Senate Veterans Affairs, 2008)
The Veterans Benefit Recovery Augmentation Plan facilitates
CalVet in contracting with VSOs in order to augment the
veterans outreach services provided by the Department's
Veterans Service Division. Assembly 75-0.
AB 2577 (Salas, 2008, held Assembly Rules, 2008)
Supports reinstating funding cut by the Governor for the
CVSOs as well as the State Veteran Service Officers. No
votes taken.
AB 389 (Salas, held Assembly Approps, 2007)
Would have appropriated $5,000,000 from the General Fund to
CalVet for disbursement to the counties. Assembly Veterans
Affairs 9-0.
AB 2268 (Samuelian, Ch. 804, Stats. 2004)
Authorized CalVet to contract out services to VSOs and,
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with the approval from the Department of Finance, to
reimburse those organizations for services rendered on a
formula/performance basis starting in fiscal year 2006-07.
Senate 31-1; Assembly 76-0.
SB 608 (Johannessen, Ch. 318, Stats. 1997)
Approved a CVSO funding level of up to $5,000,000 of which
only approximately $2,500,000 has traditionally been
funded. Senate 38-0; Assembly 77-0.
POSTITIONS
Sponsor: California Association of County Veterans Service
Officers (CACVSO).
Support: American GI Forum
American Legion - Department of California
AMVETS - Department of California
California State Association of Counties (CSAC)
California State Commanders Veterans Council
San Joaquin County, Board of Supervisors
San Luis Obispo County, Board of Supervisors
Shasta County, Board of Supervisors
Solano County, Board of Supervisors
Veterans of Foreign Wars (VFW) - Department of
California
Vietnam Veterans of America - California State Council
Oppose: None received
Analysis by: Wade Cooper Teasdale
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