BILL ANALYSIS Ó AB 1268 Page 1 Date of Hearing: May 15, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 1268 (John Pérez) - As Introduced: February 22, 2013 Policy Committee: Labor and Employment Vote: 7-0 Veterans Affairs 8-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill establishes the Veterans Workforce Development and Employment Office (the Office) within the Labor and Workforce Development Agency (Labor Agency) for the purpose of coordinating state veterans workforce development and employment services. Specifically, this bill: 1)Repeals statute governing veteran affairs service coordination with the Employment Development Department (EDD), as specified. 2)Requires the Office to administer the programs and services described in the federal Jobs for Veterans State Grant Program, including, but not limited to, overseeing the federal Local Veterans' Employment Representative program (LVER) and the Disabled Veterans Outreach Program (DVOP), as currently administered by EDD. 3)Transfers the administration of LVER and DVOP administrative and support staff to the Office. A plan for the transition is due May 1, 2014. 4)Requires the Office to coordinate with the Department of Veterans Affairs and the Governor's Interagency Council on Veterans. Further requires the Office to coordinate with other state agencies that assist veterans to develop research, a statewide plan, and strategies regarding veterans' employment assistance and training programs available in the state, as specified. AB 1268 Page 2 5)Requires the Office to seek federal and other funding to implement this measure and expresses legislative intent that state-supported veterans employment training services meet the same performance standards as those required under the federal Workforce Investment Act, as specified. FISCAL EFFECT 1)The Labor Agency will incur one-time administrative costs, likely in the low hundreds of thousands of dollars, to establish and organize the new division and transition the specified programs and staff from EDD to the new division, with ongoing costs in the range of $200,000 to coordinate and collaborate with other state agencies providing veterans services. 2)EDD would likely incur one-time transition costs associated with the relocation of staff and programs to the Office. According to EDD, the transfer of the federal Jobs for Veterans State Grant Program will lead to $19.3 million in annual funding shifting from EDD to the Office. There are approximately 200 federally-funded positions at EDD involved with this program. In addition, there are five central office staff that support the LVER and DVOP programs exclusively, but these staff are not funded by the federal Jobs for Veterans Grant Program; instead, they are funded with other federal Workforce Investment Act (WIA) funds. Assuming these five staff are transferred over to the Office, there would be a loss of approximately $550,000 in federal WIA funds to EDD. COMMENTS 1)Purpose . According to the California Research Bureau's report: Overview of Veterans in California (March 2013), California has approximately 1.9 million veterans. Of these, about 185,000 (or 9.7%) are women. Almost one million are over the age of 60 (52.3%). Most live in Southern California counties, and are heavily clustered in Los Angeles (323,431 in 2012), San Diego (222,348 in 2012) and Orange counties (132,529 in 2012). The author contends most veterans, as documented by the United States Bureau of Labor Statistics, experience significant AB 1268 Page 3 difficulty in finding employment. Furthermore, the author argues the state's current structure does not have a stellar record in aiding veterans with employment assistance and training programs. This bill moves administration of specified veteran affairs programs from EDD to a newly established Office within the Labor Agency, as specified. 2)Related legislation . AB 171 (Chavez), pending in the Veterans Affairs Committee, establishes the California Veterans Services and Workforce Development Division within the Department of Veterans Affairs for the purpose of coordinating and administering veterans assistance programs in the state. This bill was not heard at the request of the author. 3)Previous legislation . AB 1931 (Gorell), established the California Veterans Services and Workforce Development Division within the Department of Veterans Affairs (DVA) for the purpose of coordinating and administering veterans' assistance programs, and transfers those programs from EDD to the DVA. This bill was held on the Senate Appropriations Committee's Suspense File in August 2012. Analysis Prepared by : Kimberly Rodriguez / APPR. / (916) 319-2081