Existing law requires the Department of Veterans Affairs to disburse funds, appropriated to the department for the purpose of supporting county veterans service officers pursuant to the annual Budget Act, on a pro rata basis, to counties that have established and maintain a county veterans service officer in accordance with the staffing level and workload of each county veterans service officer under a formula based upon performance developed by the department.

This bill would define a workload unit for purposes of these provisions to mean a specific claim activity that is used to allocate subvention funds to counties, which is approved by the department, and performed by county veterans service officers. The bill would appropriate on an annual basis the sum of $7,000,000 from the General Fund to the Department of Veterans Affairs to be available for allocation to counties to fund the activities of county veterans service officers, as specified. The bill would also delete obsolete provisions and would make conforming changes.

This bill would declare that it is to take effect immediately as an urgency statute.

 THIRD READING  

Bill No: SB 1043

Author:

:

Vote:

SENATE VETERANS AFFAIRS COMMITTEE: 7-0, 4/24/18

AYES: Newman, Nielsen, Dodd, Hueso, Nguyen, Roth, Wilk

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/18

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

SUBJECT:

SOURCE: California Association of County Veterans Service Officers

DIGEST:

This bill establishes a continuous appropriation – for each fiscal year, commencing July 1, 2018 – of $7 million from the General Fund to the Department of Veterans Affairs (CalVet) and makes it available for allocation to counties to fund the activities of county veterans service officers (CVSOs). This bill also designates its provisions as an urgency statute.

ANALYSIS:

Existing law:

1. Provides for CVSOs, who assist veterans in making claims for veterans benefits (federal/state/local), and who perform other veteran-related services requested by the board of supervisors.
2. Provides that the compensation and expenses of the CVSO shall be a county charge, but CalVet, out of state moneys made available, shall pay each county a portion of those costs in an amount determined by CalVet.
3. Provides for an annual state appropriation for the CVSOs as determined in each year's Budget Act, currently funded at $5.6 million.
4. Requires CalVet to determine and report to the Department of Finance (DOF):
5. The number of claims filed to achieve benefits such as pension, disability compensation, and health care on behalf of veterans and their dependents.
6. The annualized monetary value of benefits received by veterans and their dependents due to the efforts of CVSOs, broken down by type of benefit.
7. A summary of other services provided by CVSOs and participation in outreach activities, such as homeless veteran “Stand Downs,” and job fairs.
8. Requires CalVet, on or before October 1 of each year, to prepare and transmit its determination for the preceding fiscal year to DOF and the Legislature.
9. Directs DOF to review CalVet's determination in time to use the information in the annual Budget Act with regard to CalVet’s budget for the next fiscal year.
10. Provides that state subvention funds shall be disbursed each fiscal year on a pro rata basis to counties that have established and maintain a CVSO in accordance with the staffing level and workload of each CVSO under a formula based upon performance, as specified, developed by CalVet.
11. Provides for a current budget allocation cap of $11 million of state funds and the consideration for the annual budget to not exceed $5 million.

This bill:

1. Makes findings and declarations pertaining to the size, evolving demographic profile, and emerging needs of California’s veteran population; the responsibilities of CVSOs in meeting those needs; and the recent history of state funding of CVSO operations.
2. Defines “workload unit” to mean a specific claim activity used to allocate subvention funds to counties, approved by CalVet and performed by CVSOs.
3. Establishes a continuous appropriation – for each fiscal year commencing July 1, 2018 – of $7 million from the General Fund to CalVet to be available for allocation to counties to fund CVSO activities.
4. Deletes obsolete provisions, makes conforming changes, and code cleanup.
5. Designates its provisions as an urgency statute.

Background

Federal veterans benefits. Veterans generally are eligible for a broad range of programs and services provided by the U.S. Department of Veterans Affairs (USDVA). These federal benefits are legislated in Title 38 of the United States Code and generally fall within the following categories:

• Education & Training
• Vocational Rehab & Employment
• Disability Compensation & Pension
• Health Care
• Home Loan Guaranty
• Life Insurance
• Burial

Filing for veteran benefits involves a complex, highly technical process. The Code of Federal Regulations Title 38, which governs veterans’ claims, contains more than 1,600 pages of fine print, and the accompanying manual also is over 1,600 pages in length. To assist veterans and their families in navigating the claims process, 28 states, including California, use the CVSO model.

County veterans service officers. CVSOs are trained, accredited professionals, who work at the county level of government and partner with CalVet. CVSOs may legally represent veterans in the federal benefits claims process, and also help connect veterans with state- and locally-provided benefits. Veterans service representatives (VSRs) are claims workers who work under the supervision of CVSOs.

Collectively, the CVSOs, through claims initiation and development, and CalVet, through claims development and representation, provide assistance to veterans and their dependents in preparing and submitting claims and in representing claimants before the federal, state and local agencies providing veterans benefits. CVSOs use the CalVet-sponsored VetPro software program to enhance their claims reporting and tracking.

CVSO funding. CVSOs are independent local agencies funded from a combination of local and state resources. The state provides limited local assistance funding from various sources, including the General Fund (subvention), Veterans Service Office Fund, and reimbursements (Medi-Cal cost avoidance). The subvention funding is appropriated to CalVet, which allocates the funds to the CVSOs.

From 2004 until recently, the state contribution to CVSO funding had languished at $2.6 million. The Legislature enacted consecutive “one-time” augmentations of $3 million, which were included, respectively, in the 2013-14 and 2014-15 Budget Bills. The 2015-16 state budget process established the level of $5.6 as a new budgetary baseline.

The single-year augmentations were dedicated to one of three main themes from the CalVet/CVSO best practices manual:

• Contacting veterans.
• Connecting veterans to their benefits and services.
• Continuous communication with veterans.

Recent funding increases boosted the abilities of CVSOs and CalVet to connect with veterans through the expansion of outreach activities, thereby linking more veterans with their community-based system of care and local service providers. The funds allowed for deployment of 32.5 additional professional VSRs and 30 support staff to connect veterans with their compensation and pension benefits available through the USDVA, resulting in an increase of federal dollars drawn down to the state this year and continuing into future years.

Related/Prior Legislation

AB 171 (Quirk-Silva, 2015) would have modified the formula by which CalVet allocates state funds to CVSOs, and adds reporting requirements to help determine how effectively and efficiently state funds are being spent. (Died, Senate Inactive File)

AB 2703 (Irwin, 2014) would have (1) required CalVet, no later than January 1, 2015, to develop an allocation formula based upon performance standards that incentivize CVSO performance; and (2) declared the Legislature’s intent to fund specified CVSO activities and to provide an additional $400,000 for disbursement to the counties to encourage innovation and reward outstanding service by CVSOs. (Held, suspense, Senate Committee on Appropriations)

SB 419 (Committee on Veterans Affairs, Chapter 48, Statutes of 2009) (1) revised 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), and (2) sunset after January 1, 2016.

SB 418 (Committee on Veterans Affairs, Chapter 48, Statutes of 2009) revised existing legislative findings and declarations with regard to the use of General Fund moneys 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 million.

SB 608 (Johannessen, Chapter 318, Statutes of 1997) required an annual report from CalVet to Department of Finance (DOF) concerning the monetary benefits obtained for veterans from the federal government by county veteran services officers. The bill required DOF to consider the reported data in constructing the annual budget of funding increases for CVSOs. The bill placed a limit on any increase based on this report of no more than $5 million from the General Fund for this purpose.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, the fiscal impact would be an ongoing $7 million appropriation to fund the activities of CVSOs (GF).

SUPPORT: (Verified 5/25/18)

California Association of County Veterans Service Officers (source)

American GI Forum of California

American Legion-Department of California

AMVETS-Department of California

California State Commanders Veterans Council

City of Blythe

City of Indian Wells

City of Palm Desert

County of Riverside

County of Sacramento

Military Officers Association of America-California Council of Chapters

Rural County Representatives of California

Vietnam Veterans of America-California State Council

OPPOSITION: (Verified 5/25/18)

None received

Prepared by:

5/26/18 15:11:23

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 1043 (Newman) - Department of Veterans Affairs: veterans’ services

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

SB 1043 would continuously appropriate $7 million annually from the General Fund to the Department of Veterans Affairs (CalVet) to be available for allocation to counties to fund the activities of county veterans service officers (CVSOs), as specified.

Fiscal Impact:

Ongoing $7 million appropriation to fund the activities of CVSOs. (GF)

Background:

Veterans are generally eligible for a range of programs and services provided by the U.S. Department of Veterans Affairs. Applying and filing for those benefits can often be a complex and highly technical process. To assist veterans and their families in navigating the claims process, 28 states, including California, use the CVSO model. CVSOs are trained, accredited professionals who work at the county level of government and partner with CalVet. Among other things, CVSOs help connect veterans with federal-, state-, and locally-provided benefits.

While CVSOs are independent local agencies, funding is derived from a combination of local and state resources including the General Fund (subvention), the Veterans Service Office Fund, and reimbursement. The subvention fund is appropriated to CalVet, which allocates the funds to the CVSOs. From 2004 until recently, the state contribution to CVSO funding was $2.6 million. The Legislature enacted consecutive “one-time” augmentations of $3 million, which were included in the 2013-14 and 2014-15 Budget Bills. The 2015-16 state budget process established the level of $5.6 as a new budgetary baseline.

Proposed Law:

This bill would:

• Make various findings and declaration regarding California’s veteran population and CVSOs;
• Define the term “workload unit”;
• Delete obsolete provisions, make conforming changes, and clean up Military and Veterans code relating to disbursing funds to counties that have established and maintain a CVSO, as specified;
• Appropriate $7 million annually from the General Fund each fiscal year commencing July 1, 2018, to CalVet to be available for allocation to counties to fund the activities of CVSOs;
• Designate the provisions of this bill as an urgency statute.

Related Legislation:

AB 171 (Quirk-Silva, 2015) would have modified the formula by which CalVet allocates state funds to CVSOs, and added reporting requirements to help determine how effectively and efficiently state funds are being spent. This bill died on the Senate Inactive File.

AB 2703 (Irwin, 2014) would have required CalVet, by January 1, 2015, to develop an allocation formula based upon performance standards that incentivize CVSO performance, and would have declared the Legislature’s intent to fund specified CVSO activities and to provide an additional $400,000 for disbursement to the counties to encourage innovation and reward outstanding service by CVSOs. This bill was held in the Senate Appropriations Committee.

SB 419 (Committee on Veterans Affairs, Chapter 48, Statutes of 2009) revises findings and declarations in existing law by declaring that 50% of the amount annually budgeted for CVSOs would be approximately $11 million (rather than the previously existing $5 million) and sunsets January 1, 2016.

SB 418 (Committee on Veterans Affairs, Chapter 48, Statutes of 2009) revises existing legislative findings and declarations with regard to the use of General Fund moneys 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 million.

-- END --

SENATE COMMITTEE ON VETERANS AFFAIRS

Senator Josh Newman, Chair

2017 - 2018 Regular

Bill No: SB 1043 Hearing Date: 4/24/18

Subject: Department of Veterans Affairs: veterans’ services

DESCRIPTION

Summary:

This bill establishes a continuous appropriation – for each fiscal year commencing July 1, 2018 – of $7 million from the General Fund to the Department of Veterans Affairs (CalVet) and makes it available for allocation to counties to fund the activities of county veterans service officers (CVSOs). The bill also designates its provisions as an urgency statute.

Existing law:

1. Provides for CVSOs, who assist veterans in making claims for veterans benefits (federal/state/local), and who perform other veteran-related services requested by the board of supervisors.
2. Provides that the compensation and expenses of the CVSO shall be a county charge, but CalVet, out of state moneys made available, shall pay each county a portion of those costs in an amount determined by CalVet.
3. Provides for an annual state appropriation for the CVSOs as determined in each year's Budget Act, currently funded at $5.6 million.
4. Requires CalVet to determine and report to the Department of Finance (DOF):
5. The number of claims filed to achieve benefits such as pension, disability compensation, and health care on behalf of veterans and their dependents.
6. The annualized monetary value of benefits received by veterans and their dependents as a result of the efforts of CVSOs, broken down by type of benefit.
7. A summary of other services provided by CVSOs and participation in outreach activities, such as homeless veteran “Stand Downs,” and job fairs.
8. Requires CalVet, on or before October 1 of each year, to prepare and transmit its determination for the preceding fiscal year to DOF and the Legislature.
9. Directs DOF to review CalVet's determination in time to use the information in the annual Budget Act with regard to CalVet’s budget for the next fiscal year.
10. Provides that state subvention funds shall be disbursed each fiscal year on a pro rata basis to counties that have established and maintain a CVSO in accordance with the staffing level and workload of each CVSO under a formula based upon performance, as specified, developed by CalVet.
11. Provides for a current budget allocation cap of $11 million of state funds and the consideration for the annual budget to not exceed $5 million.

This bill:

1. Makes findings and declarations, including:
   1. The size, evolving demographic profile, and emerging needs of California’s veteran population, and the responsibilities of CVSOs in meeting those needs.
   2. The recent history of state funding of CVSO operations.
2. Defines the term “workload unit” to mean a specific claim activity that is used to allocate subvention funds to counties, which is approved by CalVet, and performed by CVSOs.
3. Establishes a continuous appropriation – for each fiscal year commencing July 1, 2018 – of $7 million from the General Fund to CalVet to be available for allocation to counties to fund CVSO activities.
4. Deletes obsolete provisions, makes conforming changes, and other code cleanup.
5. Designates its provisions as an urgency statute.

BACKGROUND

Federal Veterans Benefits. Veterans generally are eligible for a broad range of programs and services provided by the U.S. Department of Veterans Affairs (USDVA). These federal benefits are legislated in Title 38 of the United States Code and generally fall within the following categories:

• Education & Training
• Vocational Rehab & Employment
• Disability Compensation & Pension
• Health Care
• Home Loan Guaranty
• Life Insurance
• Burial

Filing for VA benefits involves a complex, highly technical process. The Code of Federal Regulations (CFR) Title 38, which governs veterans’ claims, contains more than 1,600 pages of fine print, and the accompanying manual also is over 1,600 pages in length.

To assist veterans and their families in navigating the claims process, 28 states, including California, use the CVSO model.

County veterans service officers. CVSOs are trained, accredited professionals, who work at the county level of government and partner with CalVet. CVSOs may legally represent veterans in the federal benefits claims process, and also help connect veterans with state- and locally-provided benefits. VSRs are claims workers who work under the supervision of CVSOs.

Collectively, the CVSOs, through claims initiation and development, and CalVet, through claims development and representation, provide assistance to veterans and their dependents in preparing and submitting claims and in representing claimants before the federal, state and local agencies providing veterans benefits. CVSOs use the CalVet-sponsored VetPro software program to enhance their claims reporting and tracking.

CVSO funding. While CVSOs are independent local agencies, funding is derived from a combination of local and state resources. The state provides limited local assistance funding from various sources, including the General Fund (subvention), Veterans Service Office Fund, and reimbursements (Medi-Cal cost avoidance). The subvention funding is appropriated to CalVet, which allocates the funds to the CVSOs.

From 2004 until recently, the state contribution to CVSO funding had languished at $2.6 million. The Legislature enacted consecutive “one-time” augmentations of $3 million, which were included, respectively, in the 2013-14 and 2014-15 Budget Bills. The 2015-16 state budget process established the level of $5.6 as a new budgetary baseline.

The single-year augmentations were dedicated to one of three main themes from the CalVet/CVSO best practices manual:

• Contacting veterans.
• Connecting veterans to their benefits and services.
• Continuous communication with veterans.

The recent funding increases boosted the abilities of CVSOs and CalVet to connect veterans in their communities with the expansion of outreach activities, thereby linking more veterans with their community-based system of care and local service providers. The funds allowed for the deployment of 32.5 additional professional veterans service representatives and 30 support staff to connect veterans with their compensation and pension benefits available through the USDVA, resulting in an increase of federal dollars drawn down to the state this year and continuing into future years.

COMMENT

Author Statement: The author and sponsor offer the following information as presented in the Findings and Declarations portion of the bill:

“The cost of maintaining county veterans service officers are shared from county general funds and state reimbursement to the counties. In 1997, in order to track performance, the Legislature enacted, and the Governor signed into law, Senate Bill 608, which required the California Department of Veterans Affairs to annually report the amount of monetary benefits paid to veterans by the federal government that were attributable to the assistance of county veterans service officers. Senate Bill 608 also required the Department of Finance to consider an increase in the annual budget for county veterans service officers of up to $5 million, if approved in the annual budget process. In 2009, the Legislature enacted, and the Governor signed into law, Senate Bill 419, which raised this amount to $11 million, if approved in the annual budget process.

“As a result of this annual reporting, by the end of 2016, it was determined that from 1995 to 2016, inclusive, the state had cumulatively budgeted $58.2 million for its share of the cost of the county veterans service officers. As a result of this investment, county veterans service officers were able to assist local veterans in obtaining $5.4 billion in new federal moneys. This is a return of about $93 for every $1 the state allocates to county veterans service officers. Furthermore, the $5.4 billion only reflects the actual monetary benefits qualified for in a given year. The monetary benefits qualified for in prior years are not tracked, yet the veterans and their dependents may continue to receive those benefits for the rest of their lives. Added to this stellar return on the state’s investment, but not counted in the annual reporting, are the Medi-Cal cost avoidance savings incurred as a result of county veterans service officers qualifying and shifting veterans away from Medi-Cal and into the appropriate federal veterans program.

“County veterans service officers accomplished all of this without ever reaching the allowable state budget allocation of $11 million, set in 2009. To date, county veterans service officers have not received more than $5.6 million per year from the state.

“It is critical that the county veterans service officers receive a steady stream of funding because there continues to be a large number of underserved veterans and dependents who are not aware of the federal benefits available to them as a result of their military service. Studies from other states show that increases in county veterans service officers result in larger amounts of federal moneys to veterans. These new federal moneys and benefits are paid directly from the United States Department of Veterans Affairs to the qualifying veterans or their dependents and are used in the local economy.”

Prior/Related legislation:

AB 171 (Quirk-Silva, 2015) would have modified the formula by which CalVet allocates state funds to county veterans service officers (CVSOs), and adds reporting requirements to help determine how effectively and efficiently state funds are being spent. (Died, Senate Inactive File)

AB 2703 (Irwin, 2014) (1) would have required CalVet, no later than January 1, 2015, to develop an allocation formula based upon performance standards that incentivize CVSO performance; and (2) would have declared the Legislature’s intent to fund specified CVSO activities and to provide an additional $400,000 for disbursement to the counties to encourage innovation and reward outstanding service by CVSOs. (Held, suspense, Senate Committee on Appropriations)

SB 419 (Committee on Veterans Affairs, Chapter 48, Statutes of 2009) (1) 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), and (2) sunsets after January 1, 2016.

SB 418 (Committee on Veterans Affairs, Chapter 48, Statutes of 2009) revises existing legislative findings and declarations with regard to the use of General Fund moneys 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 million.

SB 608 (Johannessen, Chapter 318, Statutes of 1997) requires an annual report from CalVet to Department of Finance (DOF) concerning the monetary benefits obtained for veterans from the federal government by county veteran services officers. The bill requires DOF to consider the reported data in constructing the annual budget of funding increases for CVSOs. The bill places a limit on any increase based on this report of no more than $5 million from the General Fund for this purpose.

POSITIONS

Sponsor: California Association of County Veterans Service Officers

Support:

American GI Forum of California

American Legion-Department of California

AMVETS-Department of California, California State Commanders Veterans Council,

Blythe, City of

Indian Well, City of

Military Officers Association of America-California Council of Chapters

Riverside, County of

Rural County Representatives of California (RCRC)

Sacramento, County of

Vietnam Veterans of America-California State Council

Oppose: None received

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