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          statutorily and administratively repealed on September 20, 2011.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:









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          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 








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          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.