BILL ANALYSIS Ó
SENATE COMMITTEE ON VETERANS AFFAIRS
Senator Jim Nielsen, Chair
2015 - 2016 Regular
Bill No: AJR 7 Hearing Date: 6/23/15
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|Author: |Mathis |
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|Version: |5/22/15 Amended |
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|Urgency: | |Fiscal: |No |
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|Consultant:|Wade Cooper Teasdale |
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Subject: Veterans: first businesses.
DESCRIPTION
Summary :
Requests that the Congress of the United States of America
further amend the GI Bill of Rights to make benefits available,
with all appropriate safeguards, to disabled veterans for use as
startup capital in the establishment of first businesses;
Existing law:
Federal law provides the GI Bill, which provides educational
assistance to servicemembers, veterans, and their dependents
(Title V of the Supplemental Appropriations Act of 2008, Public
Law 110-252, H.R. 2642)
This bill:
Requests that the Congress of the United States of America
further amend the GI Bill of Rights to make benefits available,
with all appropriate safeguards, to disabled veterans for use as
startup capital in the establishment of first businesses;
BACKGROUND
History
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The GI Bill program provides educational assistance to
servicemembers, veterans, and their dependents. The original GI
Bill was established with the enactment of the Servicemen's
Readjustment Act of 1944.
According to the United States Department of Veterans Affairs
(USDVA) website:
'Before the war, college and homeownership were, for the most
part, unreachable dreams for the average American. Thanks to the
GI Bill, millions who would have flooded the job market instead
opted for education. In the peak year of 1947, Veterans
accounted for 49 percent of college admissions. By the time the
original GI Bill ended on July 25, 1956, 7.8 million of 16
million World War II Veterans had participated in an education
or training program.'
The program was extended and modified. Then, in 1984, the
Congress more thoroughly revamped the program by creating the
Montgomery GI Bill. In 2008, Congress created the Post-9/11 GI
Bill, which gives veterans with active duty service on, or
after, Sept. 11 2001, enhanced educational benefits that cover
more educational expenses, provide a living allowance, money for
books and the ability to transfer unused educational benefits to
spouses or children.
Post-9/11 GI Bill
In most cases, servicemembers and veterans will need to use the
benefits within 15 years of discharge from the military.
In addition to traditional higher education, veterans may use
the Post-9/11 GI Bill for vocational training and certain types
of flight training.
Any veteran who served at least 90 days on active duty after
September 11, 2001, is eligible for the Post-9/11 GI Bill. Those
who served less than 36 months since 9/11/2001 will receive a
reduced benefit. Those who retired prior to August 1, 2009, are
not eligible to transfer benefits to their dependents.
Those who meet the time in service requirements and apply for
transfer of benefits while still on active duty can transfer
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Post-9/11 GI Bill benefits to spouses and dependents. However,
dependents must be named and assigned at least one percent of
the benefits available prior to discharge.
Veterans with a service-connected disability may also qualify
for the VA's Vocational Rehabilitation and Employment program.
The VOW to Hire Heroes Act also contains training benefits for
unemployed veterans between the ages of 35 and 60.
Veteran Entrepreneurship Programs
The U.S. Small Business Administration (SBA) manages
entrepreneurship programs that assist veterans, in general, and
veteran with service-connected disabilities. Areas supporting
include starting a business, writing a business plan,
registering a business, obtaining licenses and permits,
identifying and understanding laws and regulations, preparing
business taxes, hiring employees, employee benefits, employee
incentives, marketing, and business exporting.
The U.S. SBA also oversees the Service-Disabled Veteran-Owned
Small Business Concern (SDVOSBC) Procurement Program. Veterans
with service-connected disabilities may win federal procurement
contracts characterized by veteran preferences, restricted
competition, set-asides or sole-sourcing.
The California Department of General Services centrally
administers the Disabled Veteran Business Enterprise (DVBE)
program, which requires that, collectively, state governmental
entities that award contracts for goods and services (aka
"awarding departments") expend no less than 3 percent of the
value of all their contracts on firms that are owned by disabled
veterans. The business enterprises must meet certain eligibility
criteria, such as at least 51 percent of the business must be
owned by a veteran who has received a USDVA service-connected
disability rating of at least 10 percent.
COMMENT
Author's statement :
"The Congress of the United States passed, and President
Franklin D. Roosevelt signed, the GI Bill of Rights in 1944 to
support our veterans of World War II in their transition back to
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civilian life.
"California is home to more than 1,800,000 veterans. Men and
women of the State of California volunteer to serve in the Armed
Forces of the United States in greater numbers than those from
any other state. California veterans have been grateful
recipients of the support of their fellow Americans through the
GI Bill.
"Up to 10 percent of veterans choose to start, run, and own
their own businesses. Veteran businesses make a significant
contribution to the state's economy and serve as a source of
employment for fellow veterans."
Committee staff comments :
The author's intent is to assist future entrepreneurs
transitioning from military to civilian life in the same way
that we currently assist future scholars. The bill wisely
includes the recommendation calling for strong safeguards to
protect GI Bill entrepreneurship funds if Congress enacts this
approach. This concern arises because a small but significant
slice of the nation's for-profit educational entities have
targeted veterans' GI bill benefits in a predatory manner, and
the same type of business may do the same with GI Bill
entrepreneurial moneys. (See, for example, "This Veterans Day,
Help a Vet Avoid a GI Bill Scam "in US News and World Report,
November 11, 2013)
POSITIONS
Sponsor: Author
Support:
American Legion - Department of California
AMVETS - Department of California
California Association of County Veterans Service Officers
California State Commanders Veteran Council
Military Officers Association of America - California Council of
Chapters
MJ King Insurance Services
Veterans of Foreign Wars - Department of California
Vietnam Veterans of American - California State Council
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Oppose: None received
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