BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 1505 (Pan) - Veterans Benefits Amended: August 6, 2012 Policy Vote: VA 5-0 Jud 4-0 Urgency: No Mandate: No Hearing Date: August 6, 2012 Consultant: Maureen Ortiz This bill meets the criteria for referral to the Suspense file. Bill Summary: AB 1505 requires the state to reinstate benefits to veterans that have their benefits reinstated by the federal government if the benefits were originally denied solely on the basis of sexual orientation. Additionally, the bill requires the Department of Veterans (DVA) to distribute information regarding military discharge upgrades, as specified. Fiscal Impact: Potentially minor costs to the DVA for posting the information on its Website, and to distribute information provided by veterans organizations (General) Unknown, potentially significant costs for reinstating benefits (General) Exact costs of reinstating benefits to veterans who were previously denied will depend on the number of veterans who have the discharge upgraded pursuant to the elimination of "Don't Ask, Don't Tell". Background: The "Don't Ask, Don't Tell" policy and the general prohibition of homosexual persons serving in the military were statutorily and administratively repealed on September 20, 2011. Veterans who have separated with a dishonorable or bad conduct discharge from the military under the "Don't Ask, Don't Tell" (DADT) policy are ineligible to receive State and Federal veterans' benefits. California currently provides numerous benefits for veterans who are honorably discharged including the following: AB 1505 (Pan) Page 1 a) College tuition fee waivers for veterans' dependents b) Nonresident college fee waiver c) Disabled veteran business enterprise opportunities d) Veterans Homes e) Motor vehicle registration fee waiver f) Disabled veteran license plates g) Veterans preference in civil service exams h) Veterans Cemetery i) Fishing and hunting licenses j) Employment and unemployment insurance assistance k) Farm and home loans l) State parks and recreation passes m) Business license tax waiver n) Property tax exemptions Many state benefits are conditioned on a federal benefit status and/or discharge type. If a veteran received an honorable discharge, even if he or she was discharged under the DADT policy, that veteran is generally eligible for federal and thus state benefits. However, without a discharge upgrade from dishonorable or bad conduct, many federal benefits are unavailable and because the state benefit requires a certain federal status trigger, the veteran will remain ineligible for state benefits even after enactment of this bill. Individual veterans may apply to military authorities to request an upgrade of his or her discharge status so as to become eligible for benefits, but discharge upgrades are strictly within the purview of the federal government. Proposed Law: AB 1505 provides that if the federal government acts to reinstate benefits to discharged veterans, regardless of their discharge classification, who were denied benefits solely on the basis of sexual orientation as specified, the state will reinstate to those veterans any state-offered benefits they were denied due to those federal policies. AB 1505 also requires the Department of Veterans Affairs to provide on its Internet Website, links to Internet resources that provide information regarding veterans' legal services organizations that specialize in military discharge upgrades. The department will also be required to provide printed resources in its offices and walk-in locations. The materials AB 1505 (Pan) Page 2 will be created by veterans' legal services organizations that specialize in military discharge upgrades. Staff Comments: AB 1505 states that it is the intent of the Legislature to extend fair and equal treatment with regard to the administration of veterans' services and programs to California's veteran population regardless of sexual orientation; and further, to respond to any federal reinstatement of benefits for discharged veterans who were denied benefits because of any federal policy prohibiting homosexual personnel from serving in the United States Armed Forces, by reinstating state-offered benefits for the same veterans.