BILL ANALYSIS Ó AB 1268 Page 1 ASSEMBLY THIRD READING AB 1268 (John A. Pérez) As Introduced February 22, 2013 2/3 vote LABOR & EMPLOYMENT 7-0 VETERANS AFFAIRS 8-0 ----------------------------------------------------------------- |Ayes:|Roger Hernández, Morrell, |Ayes:|Muratsuchi, Chávez, | | |Alejo, Chau, Gomez, | |Atkins, Brown, Eggman, | | |Gorell, Holden | |Fox, Salas, Yamada | | | | | | ----------------------------------------------------------------- APPROPRIATIONS 13-0 ----------------------------------------------------------------- |Ayes:|Gatto, Bocanegra, | | | | |Bradford, | | | | |Ian Calderon, Campos, | | | | |Eggman, Gomez, Hall, | | | | |Ammiano, Linder, | | | | |Pan, Quirk, Weber | | | | | | | | ----------------------------------------------------------------- SUMMARY : Establishes the Veterans Workforce Development and Employment Office (Office) within the Labor and Workforce Development Agency (Agency), as specified. Specifically, this bill : 1)Creates the Office within the Agency for the purpose of coordinating state veterans workforce development and employment services and requires the Office to do all of the following: a) Administer specified state and federal unemployment programs and services for veterans currently covered by the Employment Development Department (EDD); b) Develop a plan, by May 1, 2014, in collaboration with the EDD for the transfer of its veterans program and service administrative responsibilities from EDD to the Office; c) Transfer all support staff responsible for AB 1268 Page 2 administration of the Disabled Veterans' Outreach Program (DVOP) and the federal Local Veterans' Employment Representatives (LVER) programs from the EDD to the Office according to the plan; and, d) Coordinate its efforts with the state Department of Veterans Affairs and the Governor's Interagency Council on Veterans. 2)Provides that the Office shall coordinate and consult with appropriate state agencies, departments, veterans' organizations and veterans' service providers, as specified. 3)Repeals existing law referencing the annual report required from EDD to the Legislature following any fiscal year in which state funds support the Veterans Employment Training services program and instead states that the Office shall provide an annual report to the Legislature regarding specified performance measures. EXISTING LAW : 1)Authorizes the EDD within the Agency to perform various functions and duties with respect to job creation and retention activities. 2)Requires the EDD to research and develop a profile of the employment and training needs of veterans throughout the state and to develop a plan to distribute employment funds for veterans' employment services, additionally requires the EDD to seek federal funding for these purposes. 3)Requires the EDD to submit an annual report to the Legislature, as specified, following any fiscal year in which state funds support the Veterans Employment Training services program. 4)Authorizes the EDD, in coordination with the California Workforce Investment Board (CWIB) to administer the federal Jobs for Veterans State Grant Program, and oversees the federal LVER, the Transition Assistance Program (TAP), and the AB 1268 Page 3 DVOP. FISCAL EFFECT : According to the Assembly Appropriations Committee, the 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. 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 supports 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 : The author points out that, recent U.S. Bureau of Labor Statistics reports indicate that many veterans, especially younger veterans, women veterans, and members of the National Guard, experience significant difficulty and challenges finding employment. Furthermore the author contends, performance outcomes under the state's current structure for federally-funded veterans' employment services indicate California lags far behind most other states in aiding veterans find and retain jobs. According to the author, the goal in establishing this Office is to better coordinate state veteran workforce development and employment services with the workforce training and employment programs administered by other state agencies and departments. Moreover, as the economy continues to recover and the state and its local governments invest in major public works projects, including any veteran job training and employment programs AB 1268 Page 4 resulting from the passage of Proposition 39, our state government needs to be better positioned organizationally to more effectively respond to and take advantage of the opportunities available to train and hire our veterans. Under this legislation, the veterans' services within EDD would be transferred to and administered by the newly created Office. Analysis Prepared by : Lorie Alvarez / L. & E. / (916) 319-2091 FN: 0000756