BILL ANALYSIS Ó AB 1505 Page 1 Date of Hearing: May 2, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 1505 (Pan) - As Amended: April 9, 2012 Policy Committee: Veterans AffairsVote: 6-0 Judiciary 7-1 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires the California Department of Veterans Affairs (DVA) to provide qualified benefits for California service members discharged from the military under the former "Don't Ask, Don't Tell" (DADT) policy. Specifically, this bill: 1)Defines "qualified benefits" to mean benefits administered by CDVA, including college tuition fee waivers for dependents of veterans, nonresident college fee waivers, disabled veteran business opportunities, farm and home loans, veterans homes, and employment insurance assistance. 2)Defines a "qualified veteran" to mean any person who served in the U.S. Armed Forces who was separated solely on the basis of sexual orientation pursuant to any federal policy prohibiting homosexual personnel from serving in the U.S. Armed Forces and not as a result of any other violation. 3)Provides that the definition of "qualified veteran" shall apply without regard to the classification of separation executed by the U.S. government. FISCAL EFFECT Unknown, likely minor state costs to the extent this bill results in increased state services for additional veterans. Based on the Veterans Affairs Committee estimate of 32,000 DADT discharges since 1980, assuming that about 10% are Californians, and assuming that only a small percentage, 10%, are dishonorably discharged, and therefore currently ineligible for veterans' AB 1505 Page 2 benefits, and assuming 50% of that number pursued state services pursuant to this bill, this relatively small number would not likely lead to significant expenditures. Moreover, as highlighted in the Assembly Veterans Affairs Committee analysis, since many state veterans' benefits are conditioned on federal discharge and benefit status, it is not clear this bill will have any significant effect on state services. COMMENTS 1)Rationale . This bill, sponsored by Equality California and Sacramento Valley Veterans, seeks to ensure California veterans dishonorably discharged under DADT qualify for veterans' services. According to the author, "As a general rule, veterans separated from the military with a discharge that is characterized as "dishonorable" or "other than honorable" are ineligible to receive state or federal veterans' benefits. However, in 2009, Attorney General Jerry Brown issued an opinion determining that under existing anti-discrimination law, the California Department of Veterans Affairs may not discriminate in its administration of veterans' benefits and programs. . . This bill seeks to clarify that veterans who were discharged from the military solely on the basis of their sexual orientation may remain eligible for veterans' benefits provided by California." 2)The impact of this bill on federal benefits status is unclear . As noted by both the Assembly Veterans Affairs Committee analysis and the Assembly Judiciary analysis, under DADT, discharge for homosexual conduct is characterized as other than honorable only when there are aggravating circumstances in connection with homosexual acts. Although California controls the provision of state veteran benefits, the statutory construction of many benefit laws is conditioned on the veteran's federal discharge and/or discharge type. Therefore, for the small subset of service members who received a "dishonorable" or "other than honorable" discharge status under DADT, it appears that any state benefit that requires a federal status to trigger eligibility may not be available absent further federal AB 1505 Page 3 eligibility changes, notwithstanding the current state policy of nondiscrimination reinforced by this bill and the AG's opinion. Individual veterans may also apply to military authorities seeking to upgrade one's discharge status so as to become eligible, but discharge upgrades are strictly within the purview of the federal government. Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081