BILL NUMBER: AB 171	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 31, 2015
	AMENDED IN ASSEMBLY  MAY 28, 2015
	AMENDED IN ASSEMBLY  MARCH 17, 2015

INTRODUCED BY   Assembly Member Irwin
   (Coauthors: Assembly Members Achadjian, Alejo, Bloom, Bonilla,
Brough, Brown, Chávez, Cooley, Cooper, Dahle, Daly, Dodd, Frazier,
Gallagher, Gonzalez, Gray, Holden, Lackey, Linder, Low, Maienschein,
Mathis, Mayes, McCarty, Salas, Steinorth, Mark Stone, and Wood)
   (Coauthors: Senators Anderson, Bates, Berryhill, Fuller, Hueso,
Huff, McGuire, Morrell, Nguyen, Pan, and Vidak)

                        JANUARY 22, 2015

   An act to  amend Section 972.1 of, and to add Section
972.3 to,   repeal and add Section 972.1 of  the
Military and Veterans Code, relating to  veterans, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.   veterans. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 171, as amended, Irwin. Department of Veterans Affairs:
veterans' services.
   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  
a county  that  comply   complies 
with certain conditions.
   This bill would  appropriate on an annual basis the sum of
$5,600,000 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 specify that the money appropriated would only be
available for encumbrance and expenditure for one year. The bill
would  require the department, no later than July 1, 2016,
to develop an allocation formula based upon performance standards
that encourage innovation and reward outstanding service by county
veterans service officers, and would require those 
continuously appropriated  moneys to be  allocated
  allocated, upon appropriation by the Legislature,
 in accordance with that formula, as specified.  The bill
would require the department to annually report to the Legislature
the efficacy, return on investment, work volume, and regional impact
of the subvention funds on each   county that receives those
funds, 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. 
   Vote:  2/3   majority  . Appropriation:
 yes   no  . Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 972.1 of the  
Military and Veterans Code   , as amended by Section 2 of
Chapter 401 of the Statutes of 2012, is repealed.  
   972.1.  (a) The sum of five hundred thousand dollars ($500,000) is
hereby appropriated from the General Fund to the Department of
Veterans Affairs for allocation, during the 1989-90 fiscal year, for
purposes of funding the activities of county veterans service
officers pursuant to this section. Funds for allocation in future
years shall be as provided in the annual Budget Act.
   (b) Funds shall be disbursed each fiscal year 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 that shall be developed by the Department of Veterans
Affairs for these purposes, and that shall allocate county funds in
any fiscal year for county veterans service officers in an amount not
less than the amount allocated in the 1988-89 fiscal year.
   (c) The department shall annually determine the amount of new or
increased monetary benefits paid to eligible veterans by the federal
government attributable to the assistance of county veterans service
officers. The department shall, on or before October 1 of each year,
prepare and transmit its determination for the preceding fiscal year
to the Department of Finance and the Legislature. The Department of
Finance shall review the department's determination in time to use
the information in the annual Budget Act for the budget of the
department for the next fiscal year.
   (d) (1) The Legislature finds and declares that 50 percent of the
amount annually budgeted for county veterans service officers is
approximately eleven million dollars ($11,000,000). The Legislature
further finds and declares that it is an efficient and reasonable use
of state funds to increase the annual budget for county veterans
service officers in an amount not to exceed eleven million dollars
($11,000,000) if it is justified by the monetary benefits to the
state's veterans attributable to the effort of these officers.
   (2) It is the intent of the Legislature, after reviewing the
department's determination in subdivision (c), 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 the
monetary benefits to the state's veterans attributable to the
assistance of county veteran service officers justify that increase
in the budget.
   (e) This section shall become operative January 1, 2016. 

   SEC. 2.    Section 972.1 is added to the  
Military and Veterans Code   , to read:  
   972.1.  (a) The Department of Veterans Affairs shall, no later
than July 1, 2016, develop an allocation formula based upon
performance standards that encourage innovation and reward
outstanding service by county veterans service officers. Upon
appropriation by the Legislature of moneys for this purpose, the
moneys shall be allocated each fiscal year in accordance with that
formula among only those counties that, in the discretion of the
secretary, comply with the following requirements:
   (1) Establish and maintain a county veterans service officer,
pursuant to Section 970.
   (2) Collect and report all information required by the department
in accordance with departmental regulations.
   (3) Comply with the training and accreditation standards for
county veterans service officers and veteran service representatives
as may be set by the department.
   (4) Require county veterans service officers and veteran service
representatives to become accredited with the department for the
purpose of providing representation services to claimants before the
United States Department of Veterans Affairs within 18 months of the
commencement of his or her employment, or on or before June 1, 2017,
whichever date is later.
   (b) The department shall annually report to the Legislature the
efficacy, return on investment, work volume, and regional impact of
the subvention funds on each county that receives those funds. The
department shall, in addition to the requirements of Section 974,
annually determine information including, but not limited to, the
following:
   (1) The amount of new or increased monetary benefits paid to
eligible veterans by the federal government attributable to the
assistance of county veterans service officers and the basis for that
determination.
   (2) The amount paid to each county, including the amounts paid to
each county for each category of workload unit included in the
allocation formula.
   (3) An evaluation as to each county's use of subvention funds,
including recommendations for improvement of each county's use of
subvention funds.
   (c) The department shall, on or before October 1 of each year,
prepare and transmit its determination for the preceding fiscal year
to the Department of Finance and the Legislature. The Department of
Finance shall review the department's determination in time to use
the information in the annual Budget Act for the budget of the
department for the next fiscal year. The department may combine this
report with the report required by Section 974.
   (d) For the purposes of this section, "workload unit" means 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.
   (e) It is the intent of the Legislature that the department revise
the allocation formula pursuant to this section on a regular basis
to adjust for changes in veteran demographics and veteran needs.
 
  SECTION 1.    The Legislature finds and declares
all of the following:
   (a) The recent conflicts in Iraq and Afghanistan are creating an
entirely new generation of veterans who may be eligible for federal
veterans benefits because of their war service and their physical and
mental conditions.
   (b) Californians make up to 10 percent of the federal military
forces used in these conflicts. Furthermore, the California National
Guard and California-based reserve units have contributed
significantly to these current conflicts.
   (c) Many of these returning California veterans are not aware of
the federal and state benefits that are available to them.
   (d) Additionally, it is estimated that in California there may be
over two million veterans, and their widows or widowers, who are
unaware that they may be eligible for pensions from the federal
government based upon their, or their spouses', past military service
in World War II, Korea, Vietnam, or the Gulf War.
   (e) California's county veterans service officers are the initial
local point of contact for claimants accessing the United States
Department of Veterans Affairs.
   (f) The costs 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, enacted as
Chapter 318 of the Statutes of 1997, 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 enacted as Chapter 183 of the Statutes of
2009, which raised this amount to $11 million, if approved in the
annual budget process.
   (g) As a result of this annual reporting, by the end of 2013, it
had been determined that from 1995 to 2013, inclusive, the state had
cumulatively budgeted $41.4 million for its share of the cost of the
county veterans service officers. As a result of this investment,
county veteran service officers were able to assist local veterans in
obtaining $4.1 billion, in new federal moneys. This is a return of
about $98 for every $1 the state allocates to county veterans service
officers. Furthermore, the $4.1 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.
   (h) The county veterans service officers had accomplished all of
this without ever reaching the allowable state budget allocation of
$11 million, set in 2009. To date, the county veterans service
officers have not received more than $5.6 million per year from the
state.
   (i) 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 their dependents who are not
aware of the federal benefits available to them as a result of their
military service. Studies from other states have shown that
increases in county veterans service officers have resulted 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 veteran or their dependent and are
used in the local economy.  
  SEC. 2.    Section 972.1 of the Military and
Veterans Code, as amended by Section 3 of Chapter 401 of the Statutes
of 2012, is amended to read:
   972.1.  (a) Funds shall be disbursed each fiscal year 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 that shall be developed by the Department of
Veterans Affairs for these purposes.
   (1) For the purposes of this section, "workload unit" means 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.
   (2) For the purposes of this subdivision, the department, by June
30, 2013, shall develop a performance-based formula that will
incentivize county veterans service officers to perform workload
units that help veterans access federal compensation and pension
benefits and other benefits, in order to maximize the amount of
federal money received by California veterans.
   (b) The department shall annually determine the amount of new or
increased monetary benefits paid to eligible veterans by the federal
government attributable to the assistance of county veterans service
officers. The department shall, on or before October 1 of each year,
prepare and transmit its determination for the preceding fiscal year
to the Department of Finance and the Legislature. The Department of
Finance shall review the department's determination in time to use
the information in the annual Budget Act for the budget of the
department for the next fiscal year.
   (c) The department shall conduct a review of the high-performing
and low-performing county veterans service officers, and, based on
this review, shall produce a best-practices manual for county
veterans service officers by June 30, 2013.
   (d) The Legislature finds and declares that it is an efficient and
reasonable use of state funds to increase the annual budget for
county veterans service officers up to a total of eleven million
dollars ($11,000,000) if it is justified by the monetary benefits to
the state's veterans attributable to the effort of these officers.
   (e) This section shall remain in effect only until January 1,
2016, and as of that date is repealed.  
  SEC. 3.    Section 972.1 of the Military and
Veterans Code, as amended by Section 2 of Chapter 401 of the Statutes
of 2012, is amended to read:
   972.1.  (a) Funds shall be disbursed each fiscal year 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 that shall be developed by the Department of
Veterans Affairs for these purposes, and that shall allocate county
funds in any fiscal year for county veterans service officers in an
amount not less than five million six hundred thousand dollars
($5,600,000).
   (b) The department shall annually determine the amount of new or
increased monetary benefits paid to eligible veterans by the federal
government attributable to the assistance of county veterans service
officers. The department shall, on or before October 1 of each year,
prepare and transmit its determination for the preceding fiscal year
to the Department of Finance and the Legislature. The Department of
Finance shall review the department's determination in time to use
the information in the annual Budget Act for the budget of the
department for the next fiscal year.
   (c) The Legislature finds and declares that it is an efficient and
reasonable use of state funds to increase the annual budget for
county veterans service officers up to a total of eleven million
dollars ($11,000,000) if it is justified by the monetary benefits to
the state's veterans attributable to the effort of these officers.
   (d) This section shall become operative January 1, 2016. 

  SEC. 4.    Section 972.3 is added to the Military
and Veterans Code, to read:
   972.3.  (a) Notwithstanding Section 13340 of the Government Code,
the sum of five million six hundred thousand dollars ($5,600,000) is
hereby appropriated annually from the General Fund each fiscal year
commencing July 1, 2015, to the Department of Veterans Affairs to be
available for allocation to counties to fund the activities of county
veterans service officers pursuant to subdivision (a) of Section
972.1. Moneys appropriated pursuant to this subdivision shall only be
available for encumbrance and expenditure for one year after the
date upon which it first becomes available for encumbrance.
   (b) The Department of Veterans Affairs shall, no later than July
1, 2016, develop an allocation formula based upon performance
standards that encourage innovation and reward outstanding service by
county veterans service officers. Moneys appropriated for this
purpose shall be allocated each fiscal year in accordance with that
formula among those counties that have established and maintained a
county veterans service officer pursuant to Section 970. 

  SEC. 5.    This act is an urgency statute
necessary for the immediate preservation of the public peace, health,
or safety within the meaning of Article IV of the Constitution and
shall go into immediate effect. The facts constituting the necessity
are:
   Approximately 50 percent of the current General Fund appropriation
in support of county veteran service offices operations expires on
June 30, 2015. In order to provide for continuity of services
critical to the successful reintegration of California's veterans, to
increase California's utilization of veteran benefits, and to ensure
veteran's claims for benefits are processed in a timely manner, it
is necessary that this act take effect immediately.