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.









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          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  








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            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