BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1268| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1268 Author: John A. Pérez (D), et al. Amended: As introduced Vote: 27 SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE : 4-0, 6/26/13 AYES: Monning, Wyland, Leno, Yee NO VOTE RECORDED: Padilla SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/30/13 AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg ASSEMBLY FLOOR : 77-1, 5/29/13 - See last page for vote SUBJECT : Unemployment insurance: veterans' unemployment: Veterans Workforce and Employment Office SOURCE : Author DIGEST : This bill establishes the Veterans Workforce Development and Employment Office (Office) within the Labor and Workforce Development Agency (LWDA) for the purpose of coordinating veterans' workforce services. ANALYSIS : Existing law: 1.Authorizes the Employment Development Department (EDD), within CONTINUED AB 1268 Page 2 the LWDA, 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. 2.Requires the EDD, in consultation and coordination with veterans' organizations and veteran service providers, to do all of the following: 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, as specified. 1.Provides that 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). 2.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, as specified. A. The number of veterans receiving individualized, case managed services. B. The number of veterans receiving these services and entering employment. C. The retention rate for veterans who enter employment. D. The average earnings for veterans entering employment. This bill establishes the Office within the LWDA for the purpose of coordinating veterans' workforce services. Specifically, this bill: CONTINUED AB 1268 Page 3 1.Creates 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 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 administration of the DVOP and the LVER programs from the EDD to the Office according to the plan. D. Coordinate its efforts with the California Department of Veterans Affairs (CDVA) and the Governor's Interagency Council on Veterans. 1.Provides 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. D. Seek federal and other funding for the research and development of veterans' employment and training needs. 1.Repeals 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. CONTINUED AB 1268 Page 4 2.Makes several findings and declarations related to the need for coordination of veterans workforce development services. Background Veteran Population in California . California is home to over 1.8 million veterans, representing 8.3% of the total U.S. veteran population. 72% of the veteran population is 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. CDVA 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 CDVA, 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. Employment assistance services for veterans . The EDD 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 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 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 search groups. They also facilitate employment, training, and placement services to promote the hiring of veterans. Furthermore, 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. CONTINUED AB 1268 Page 5 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. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee, LWDA will incur one-time costs, likely in the low hundreds of thousands of dollars (special funds), to implement the provisions of this bill. LWDA will be required to establish and organize the Office and relocate affected programs from EDD. Ongoing costs to LWDA will be about $200,000 (special funds) to interact and coordinate with other state agencies that provide veterans services. EDD could incur some one-time transition costs as well. SUPPORT : (Verified 8/29/13) AMVETS - Department of California California Association of County Veterans Service Officers California Labor Federation San Diego Gas and Electric Southern California Gas Company The Home Depot VFW - Department of California ARGUMENTS IN SUPPORT : According to the author's office, 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. The author's office argues, California's existing state veteran workforce programs managed by EDD underperform compared to other CONTINUED AB 1268 Page 6 states. In addition, EDD's reliance on job listing Internet Web sites 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's office 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's office believes that California veterans deserve more employment assistance than simply job posting Internet Web sites and job fairs and argues that establishing an Office will allow veterans to more fully participate in the national movement by major employers to hire veterans. ASSEMBLY FLOOR : 77-1, 5/29/13 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NOES: Donnelly NO VOTE RECORDED: Holden, Vacancy PQ:ej 8/31/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED AB 1268 Page 7 CONTINUED