BILL ANALYSIS Ó
Senate Committee on Labor and Industrial Relations
William W. Monning, Chair
Date of Hearing: June 26, 2013 2013-2014 Regular
Session
Consultant: Alma Perez Fiscal:Yes
Urgency: No
Bill No: AB 1268
Author: John A. Perez
As Introduced/Amended: February 22, 2013
SUBJECT
Unemployment insurance: veterans' unemployment:
Veterans Workforce Development and Employment Office
KEY ISSUE
Should the Legislature establish the Veterans Workforce
Development and Employment Office for the purpose of
coordinating veterans' workforce development and employment
programs and services?
ANALYSIS
Existing law authorizes the Employment Development Department
(EDD), within the Labor and Workforce Development Agency, among
other things, to study and make recommendations as to actions
which might promote the prevention of unemployment and
stabilization of employment, encourage and assist in the
adoption of practical methods of vocational training, and
promote re-employment of workers. (Unemployment Insurance §325)
Existing law also requires the EDD, in consultation and
coordination with veterans' organizations and veteran service
providers, to do all of the following (UI §325.5):
a) Research the needs of veterans throughout the state and
develop a profile of veterans'
employment and training needs;
b) Develop a statewide plan for the equitable distribution
of employment funds for
veterans' employment services; and
c) Seek federal funding for purposes of subdivision (a).
The EDD is also responsible for the administration of the
programs and services described in the federal Jobs for Veterans
State Grant Program, including the federal Disabled Veterans'
Outreach Program (DVOP) and the federal Local Veterans'
Employment Representatives program (LVER).
Existing law requires that EDD, following any fiscal year in
which state funds support the Veterans Employment Training
services program, to provide an annual report to the Legislature
(on or before November 1) regarding the following performance
measures (UI §325.6):
1) The number of veterans receiving individualized, case
managed services.
2) The number of veterans receiving these services and
entering employment.
3) The retention rate for veterans who enter employment.
4) The average earnings for veterans entering employment.
This Bill would establish the Veterans Workforce Development and
Employment Office (Office) within the Labor and Workforce
Development Agency for the purpose of coordinating veterans'
workforce services.
Specifically, this bill would:
1) Create the Office 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;
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
Hearing Date: June 26, 2013 AB 1268
Consultant: Alma Perez Page 2
Senate Committee on Labor and Industrial Relations
Office;
c) Transfer all support staff responsible for
administration of the Disabled Veterans' Outreach Program
(DVOP) and the 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) Provide that the Office shall coordinate and consult
with appropriate state agencies, departments, veterans'
organizations and veterans' service providers to:
a) Research the needs of veterans throughout the state
and develop a profile of veterans' employment and
training needs;
b) Develop a plan for the equitable distribution of the
employment funds for veterans' employment services;
c) Develop a strategy and program for identifying
employers and small businesses interested in hiring
veterans and establish the means by which any appropriate
training and placement may occur; and,
d) Seek federal and other funding for the research and
development of veterans' employment and training needs.
3) Repeal existing law referencing the annual report
required from EDD to the Legislature and instead states
that the Office shall provide an annual report to the
Legislature regarding specified performance measures.
4) Make several findings and declarations related to the
need for coordination of veterans workforce development
services.
Hearing Date: June 26, 2013 AB 1268
Consultant: Alma Perez Page 3
Senate Committee on Labor and Industrial Relations
COMMENTS
1. Background on the Veteran Population in CA:
California is home to over 1.8 million veterans, representing
8.3 percent of the total U.S. veteran population. Seventy-two
percent of the veteran population are fifty years of age or
above, and the number of veterans 85 years of age or older is
projected to increase 20% between 2010 and 2019. California's
Department of Veterans Affairs anticipates receiving an
additional 35,000-40,000 discharged members of the armed
services each year for the next several years - more than any
other state. According to the department, historically, the
largest demand for benefits and services for veterans occurs
immediately after discharge and again as the veteran
population ages and requires greater access to medical
facilities and long-term care services.
2. Employment Assistance Services for Veterans:
The Employment Development Department assists veterans and
their eligible spouses maximize their employment and training
opportunities through individualized case managed services.
The EDD veterans' representatives specialize in assisting
veterans in their efforts to return to work and are located in
many local EDD offices. Services provided include a veteran
24-hour priority hold on all job listings, customized job
search assistance, job fairs, employer recruitments, and other
events and resources.
The Disabled Veterans' Outreach Program (DVOP) specialists,
also known as the Veterans Employment Service Specialists,
focus their efforts on those economically or educationally
disadvantaged who can reasonably be expected to benefit from
improved employability as a result of receiving intensive
services within the One-Stop Career Center system.
The Local Veterans' Employment Representatives (LVER) staff,
also known as the Veteran Workforce Specialist, conducts
outreach to employers, assist veterans in job development
contacts, conducting job search workshops, and establish job
Hearing Date: June 26, 2013 AB 1268
Consultant: Alma Perez Page 4
Senate Committee on Labor and Industrial Relations
search groups. They also facilitate employment, training, and
placement services to promote the hiring of veterans. The
LVER concentrates on individualized job development services
for veterans, especially those determined to be job ready
after receipt of intensive services by the DVOP specialists.
In program year 2011-12, Governor Brown took action to support
California's returning veterans by issuing Executive Order
B-9-11, creating the California Interagency Council on
Veterans, whose purpose is to identify and prioritize the
needs of California's veterans, and to coordinate the
activities at all levels of government in addressing those
needs.
3. Need for this bill?
While existing law already requires the EDD, in consultation
and coordination with veterans' organizations and veteran
service providers, to research the needs of veterans
throughout the state and develop a profile of veterans'
employment and training needs - changing economic times
require continuous evaluation of these services to ensure
needs are being met and veteran workers are getting crucial
services necessary to enter into stable long-term employment.
Unfortunately, according to a January 2013 memorandum prepared
by the Senate Office of Research (SOR), titled Employment
Opportunities for (Semi-Skilled or Unskilled) Veterans,
California does not provide a coordinated, integrated system
that streamlines employment-related services to veterans.
According to SOR, veterans find many services fragmented and
without a single point of entry.
According to the Assembly Veterans Committee analysis of this
bill, performance outcomes for California's federally-funded
veterans' employment services that are currently administered
by EDD indicate that California lags behind other states in
helping veterans find and retain jobs. Based on the 2011 state
performance outcomes (the most recent available), California
ranks last compared to all the other states in the key
category of veterans that found employment after having
received state employment services.
Additionally, in mid-March of this year, the Joint Legislative
Hearing Date: June 26, 2013 AB 1268
Consultant: Alma Perez Page 5
Senate Committee on Labor and Industrial Relations
Audit Committee approved a request to conduct a comprehensive
audit of the veteran workforce programs that EDD currently
administers and evaluate their effectiveness in providing
employment assistance and job training programs to veterans.
The audit is due by October 2013.
Under this legislation, the veterans' services within EDD
would be transferred to and administered by the newly created
Veterans Workforce Development and Employment Office for the
purpose of coordinating veterans' workforce services.
4. Proponent Arguments :
According to the author, recent reports from the U.S.
Department of Labor's Bureau of Labor Statistics indicate that
many veterans, especially younger veterans, women veterans,
and members of the National Guard, continue to experience
significant difficulty and challenges finding employment.
This will be compounded when a large number of soldiers and
military personnel separate from service due to the wind down
of the war in Afghanistan and additional federal defense
budget cuts reduce the number of active duty personnel.
Unfortunately, the author argues, California's existing state
veteran workforce programs managed by EDD underperform
compared to other states. In addition, EDD's reliance on job
listing websites and job fairs often renders it difficult for
veterans to more directly interact with employers and to
connect veterans with employment opportunities. Moreover, the
availability of federal veteran hiring tax credits are not
promoted nearly enough by the state Labor Agency or EDD and
will represent an important component of this effort.
The author states that the voter's approval of Proposition 39
in the November 2012 General Election also holds the potential
of generating significant funding for veteran job training and
employment opportunities, which the establishment of this
office will help support and coordinate on behalf the state's
veteran community. Overall, the author believes that
California veterans deserve more employment assistance than
simply job posting websites and job fairs and argues that
establishing a state Veteran Workforce Development and
Hearing Date: June 26, 2013 AB 1268
Consultant: Alma Perez Page 6
Senate Committee on Labor and Industrial Relations
Employment Office will allow veterans to more fully
participate in the national movement by major employers to
hire veterans.
5. Opponent Arguments :
None received.
6. Prior or Related Legislation :
SB 723 (Correa) of 2013: Pending before Assembly
Appropriations Committee
SB 723 would require the Employment Development Department and
the Department of Consumer Affairs, on or before January 1,
2015, jointly to present a report to the Legislature
containing best practices by state governments around the
nation in facilitating the credentialing of veterans by using
their documented military education and experience.
AB 1931 (Gorell) of 2012: Held in Senate Appropriations
Committee
AB 1931would have 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 would have
transferred those programs from the EDD to the DVA.
SUPPORT
AMVETS - Department of California
California Association of County Veterans Service Officers
California Labor Federation, AFL-CIO
San Diego Gas and Electric
Southern California Gas Company
The Home Depot
VFW - Department of California
OPPOSITION
None received
Hearing Date: June 26, 2013 AB 1268
Consultant: Alma Perez Page 7
Senate Committee on Labor and Industrial Relations
Hearing Date: June 26, 2013 AB 1268
Consultant: Alma Perez Page 8
Senate Committee on Labor and Industrial Relations