BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1268
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          ASSEMBLY THIRD READING
          AB 1268 (John A. Pérez)
          As Introduced  February 22, 2013
          2/3 vote 

           LABOR & EMPLOYMENT       7-0    VETERANS AFFAIRS    8-0         
           
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          |Ayes:|Roger Hernández, Morrell, |Ayes:|Muratsuchi, Chávez,       |
          |     |Alejo, Chau, Gomez,       |     |Atkins, Brown, Eggman,    |
          |     |Gorell, Holden            |     |Fox, Salas, Yamada        |
          |     |                          |     |                          |
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           APPROPRIATIONS      13-0                                        
           
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          |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  








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               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  








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            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  








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          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 


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