BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                         AJR 7|
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                                   THIRD READING 


          Bill No:  AJR 7
          Author:   Mathis (R)
          Amended:  5/22/15 in Assembly
          Vote:     21  

           SENATE VETERANS AFFAIRS COMMITTEE:  5-0, 6/23/15
           AYES:  Nielsen, Hueso, Allen, Nguyen, Roth

           ASSEMBLY FLOOR:  75-0, 5/22/15 - See last page for vote

           SUBJECT:   Veterans: first businesses


          SOURCE:    Author


          DIGEST:  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 all  
          veterans for use as startup capital in the establishment of  
          first businesses.


          ANALYSIS:


          Existing federal law, the Post-9/11 Veterans Educational  
          Assistance Act of 2008 (GI Bill), provides educational  
          assistance to servicemembers, veterans, and their dependents.












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          This bill requests that the Congress of the United States of  
          America further amend the GI Bill to make benefits available,  
          with all appropriate safeguards, to all veterans for use as  
          startup capital in the establishment of first businesses.


          Background


          GI Bill.  Established originally in 1944 and modified several  
          times over the years, the GI Bill program provides educational  
          assistance to servicemembers, veterans, and their dependents.  
          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.

          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 receive reduced  
          benefits. Those who retired prior to August 1, 2009, are not  
          eligible to transfer benefits to their dependents. In most  
          cases, veterans will need to use their benefits within 15 years  
          of discharge.

          Those who meet the time in-service requirements and apply for  
          transfer of benefits while still on active duty can transfer  
          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.

          Veteran Entrepreneurship Programs.  The federal Small Business  
          Administration (SBA) manages entrepreneurship programs that  
          assist veterans, in general, and veterans with service-connected  
          disabilities. Areas supporting include starting a business,  
          writing a business plan, registering a business, obtaining  
          licenses and permits, understanding laws and regulations,  
          preparing taxes, hiring employees, employee benefits and  
          incentives, marketing, and business exporting.

          The SBA also oversees the Service-Disabled Veteran-Owned Small  
          Business Concern (SDVOSBC) Procurement Program. Veterans with  
          service-connected disabilities may win federal procurement  







                                                                      AJR 7  
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          contracts characterized by veteran preferences, restricted  
          competition, set-asides or sole-sourcing.

          The California Department of General Services administers the  
          Disabled Veteran Business Enterprise Program, which requires  
          that 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.

          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. According to Forbes,  
          80 percent of new small businesses fail within their first 18  
          months, often due to insufficient capital to fund the  
          post-startup growth phase. The bill appropriately includes a  
          recommendation for strong safeguards to protect GI Bill  
          entrepreneurship funds if Congress enacts this approach. This  
          concern arises because some educational entities have targeted  
          veterans' GI bill benefits in a predatory manner, and the same  
          could occur with GI Bill entrepreneurial moneys.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified6/23/15)


          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







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          Vietnam Veterans of American - California State Council


          OPPOSITION:   (Verified6/23/15)


          None received

          ASSEMBLY FLOOR:  75-0, 5/22/15
          AYES:  Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla,  
            Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams,  
            Wood, Atkins
          NO VOTE RECORDED:  Alejo, O'Donnell, Olsen, Waldron, Weber

          Prepared by:Wade Cooper Teasdale / V.A. / (916) 651-1503
          6/24/15 16:04:04


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