BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON VETERANS AFFAIRS
                             Senator Jim Nielsen, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 221         Hearing Date:    4/14/15
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          |Author:    |Jackson                                              |
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          |Version:   |2/12/15                                              |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Wade Teasdale                                        |
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            Subject:  State public employees:  sick leave:  veterans with  
                            service-related disabilities


           DESCRIPTION
            
          Summary:
           Permits state employees, who are military veterans with  
          service-connected disabilities, to receive additional sick leave  
          dedicated to health care treatment of those disabilities.

           Existing law:

            Federal:

             1.   Directs the United States Department of Veterans Affairs  
               (USDVA) to analyze and rate the service-connected  
               disabilities of qualified military veterans.

             2.   Directs USDVA to provide health care treatment and  
               monetary compensation to veterans with rated,  
               service-connected disabilities.

            State:

             1.   Authorizes the Legislature to provide preferences to  
               veterans and their surviving spouses in state employment.

             2.   Provides that state agency employers provide employees  
               with the ability to accrue and apply sick leave and  
               establishes procedures for agency administration of those  








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               sick leave benefits.
           
          This bill:

              1.   Grants a state officer or employee, who is a military  
               veteran with a service-connected disability rated at 30% or  
               more by USDVA, an additional credit for sick leave with pay  
               of up to 96 hours.

             2.   Limits use of this sick leave to medical treatment of  
               the employee's military service-related disability.

             3.   Requires that this sick leave be credited on the first  
               day of employment and remain available for use for the  
               following 12 months of employment.

             4.   Prohibits this sick leave from being carried over after  
               12 months.

             5.   Permits employing agencies to adopt rules requiring  
               "submission of satisfactory proof" that the sick leave is  
               being used for treatment of a service-connected disability.


           
           
           BACKGROUND
           
           Sick Leave for State Employees

           Employees of California state government agencies are eligible  
          to accrue sick leave credits, which they may use to take time  
          off from work at full pay. Provided they have sufficient accrued  
          credits, sick leave compensates employees during periods of  
          absence due to:

                 Being physically or mentally unable to work due to  
               illness or injury.

                 Obtaining professional diagnosis of treatment for a  
               medical condition.

                 Other medical reasons, such as pregnancy or obtaining a  
               physical examination.









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                 Attending to illness of a child, parent, spouse, or  
               domestic partner.

          The Government and Labor codes contain provisions for sick leave  
          with actual benefits for represented employees are further  
          specified by collective bargaining agreements or memorandums of  
          understanding (MOU). Benefits for nonrepresented employees  
          designated as managerial, supervisory, and confidential are  
          further specified in California Department of Human Resources  
          (CalHR) regulations.

           Federal Benefits for Service-Connected Disabilities

           USDVA provides health care treatment and monetary compensation  
          to veterans with service-connected disabilities.

                 Health Care:

               USDVA's Veterans Health Administration (VHA) operates the  
               nation's largest integrated health care system with over  
               1,700 sites of care, serving 8.76 million veterans each  
               year. California veterans are served by the numerous  
               hospitals and clinics owned, operated and regionally  
               administered by the VHA.

               VHA's Sierra Pacific Network (VISN 21) is responsible for  
               serving Northern California veterans, while Southern  
               Californians are served by VHA's Desert Pacific Healthcare  
               Network (VISN 22).

               In addition to direct health treatment services, VHA  
               administers the Veterans Choice Program. The Choice Program  
               is a new, temporary benefit that allows eligible veterans  
               an option to receive health care within their local  
               communities rather than waiting for a backlogged VHA  
               appointment or traveling to a distant VHA-owned facility.

                 Disability Compensation:

               USDVA's Veterans Benefits Administration (VBA) provides  
               disability compensation as a tax-free monetary benefit to  
               veterans rated with disabilities incurred or aggravated  
               during active military service. Compensation may also be  









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               paid for post-service disabilities that are considered  
               related or secondary to disabilities occurring in service  
               and for disabilities presumed to be related to  
               circumstances of military service, even though they may  
               arise after service. Generally, the degrees of disability  
               specified are also designed to compensate for considerable  
               loss of working time from exacerbations or illnesses.

           Recent Trends: Veterans with Service-Connected Disabilities

           Of the nearly 1.9 million "post-9/11" veterans separated from  
          the military after one or more deployments to Iraq and/or  
          Afghanistan:<1>

                 1,126,173 (60%) have obtained USDVA health care since FY  
               2002 (cumulative).

                  -         685,668 (61%) of 1,121,675 former Active Duty

                  -         440,505 (59%) of 744,453 Reserve/National  
                    Guard

                 Among the veterans who received health care since FY  
               2002:

                  -         1,039,313 of 1,126,173 (92%) have been seen  
                    only as outpatients by USDVA.

                  -         86,860 of 1,126,173 (8%) have been  
                    hospitalized at least once in a USDVA facility.

           USDVA Disability Ratings

           The USDVA rates disabilities to facilitate health care and  
          compensation claims for injuries or diseases that happened  
          during active duty, or were made worse by active military  
          ---------------------------
          <1> Epidemiology Program, Post-Deployment Health Group, Office  
          of Public Health, "Analysis of VA Health Care Utilization among  
          Operation Enduring Freedom (OEF), Operation Iraqi Freedom (OIF),  
          and Operation New Dawn (OND) Veterans: Cumulative from 1st Qtr  
          FY 2002 through 4th Qtr FY 2014 (October 1, 2001  - September  
          30, 2014)", Veterans Health Administration, Department of  
          Veterans Affairs, January 2015, pg 5.









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          service. The amount of basic benefit paid varies depending on  
          the rated severity of the condition.

          A veteran need not be totally disabled in order to be eligible  
          for compensation. USDVA rates disability along a continuum of  
          0%-to-100% in 10% increments, depending upon the level of  
          disability determined. The disability percentage also can be  
          derived by analyzing the composite condition of an individual  
          veteran with multiple disabilities.

          The 10% rating is the lowest for which compensable income is  
          awarded. A veteran with a 100% rating will have one or more  
          disabilities that significantly interfere with normal life  
          functions. A veteran with a 0% rating may have a  
          service-connected condition, but the condition does not  
          interfere with normal life functions. The majority of disabled  
          veterans are rated between10% to 30%.

          In general, it makes sense for a veteran to seek evaluation,  
          even for a condition likely to receive a 0% rating (which is not  
          monetarily compensable). The reason is that the veteran, at a  
          minimum, will have documented a service-connected health  
          condition, which may deteriorate later into a more serious,  
          perhaps compensable disability. In addition, individuals with a  
          0% rating may be eligible for federal and state veterans'  
          benefits other than monetary compensation.

          As time passes, a veteran's disability claim may require  
          re-ratings. The re-ratings can be caused by changes in law,  
          advances in medical knowledge, or fluctuations in the veteran's  
          physical or mental condition. A re-rating can cause an  
          individual's percentage to go up or down.

           
          COMMENT
           
           Author's Statement  :

               Newly hired state employees begin their careers with no  
               sick leave, and accrue it slowly, after their first month  
               of employment, at a rate of 8 hours per month. As a result,  
               disabled veterans who have recently entered the state  
               workforce may not have sufficient sick leave to attend  
               medical appointments, and may struggle with the demands of  









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               a disability on top of those of a new job. Disabled  
               veterans should not have to take unpaid leave to attend  
               their VA or medical appointments or be forced to cancel  
               difficult-to-schedule VA appointments. SB 221 will help  
               ease the transition from military service to state service  
               by allowing disabled veterans who are state workers to take  
               the time they need to get regular medical or psychiatric  
               care.

           Committee Staff Comments  :

             1.   The author notes that "(a)ccording to CalHR, there are  
               12,441 veterans in state civil service, and approximately  
               1,739 self-identify as disabled." These existing state  
               employee veterans would consist primarily of older,  
               pre-9/11 veterans, including "Desert Shield/Storm" (1991)  
               veterans and Vietnam veterans. These older veterans did not  
               apply for USDVA disability ratings and health treatment at  
               the much higher rates observed in the younger, emerging  
               post-9/11 veterans, many of whom have experienced multiple  
               deployments to Iraq and/or Afghanistan. For example, the  
               Congressional Research Service states that 27 percent of  
               U.S. military personnel returning from Afghanistan and Iraq  
               warrant the diagnosis of post-traumatic stress disorder  
               (PTSD).<2>

             2.   State agencies have a vested interest in facilitating  
               the quick health recovery of newly hired veterans. In  
               addition to meeting any inherent moral obligation to  
               support veterans, agencies benefit generally from the  
               efficiency and work climate associated with a healthier  
               work force.

              3.   Potential Amendments for Consideration  : As written, the  
               bill permits a qualifying officer or employee to receive  
               the sick leave credit "on the first day of employment" and  
               provides that the credit "shall remain available for use  
               for the following 12 months of employment."

             --------------------------
          <2> Blakely, K. and Jansen, D., "Post-Traumatic Stress Disorder  
          and Other Mental Health Problems in the Military: Oversight  
          Issues for Congress," Congressional Research Service, August 8,  
          2013.









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                   a.        One-time benefit  ? If the author intends this  
                    to be a one-time benefit received upon initial entry  
                    into state service, is the existing language  
                    sufficiently clear? Should the bill be clarified to  
                    prevent the possibility of a qualifying employee  
                    triggering a new round of sick leave credits whenever  
                    the employee switches to a job in a different state  
                    agency? In other words, clarify the benefit's  
                    association with "first day of employment in state  
                    service" as opposed to "first day of employment with  
                    the agency."

                   b.        Existing employees?  The medical treatment  
                    protocols associated with some disabilities can extend  
                    for years into the future. As noted under Staff  
                    Comment #1 above, there are existing, perhaps  
                    long-time state employees, who are disabled veterans,  
                    who have been receiving ongoing USDVA treatment for  
                    service-connected disabilities, and whose initial  
                    years of state service predate the effective date of  
                    this measure, if enacted. Many disabilities worsen  
                    over time as the individual ages. An existing state  
                    employee may work in an agency for years with a USDVA  
                    rating lower than 30 percent, but eventually be  
                    re-rated to a level that meets or exceeds the  
                    30-percent threshold. Furthermore, many  
                    service-connected disabilities are never diagnosed at  
                    all until years, sometimes decades after military  
                    service was completed. Even now Vietnam Era and older  
                    veterans are receiving initial diagnoses of  
                    service-connected disabilities and receiving  
                    first-time eligibility for USDVA health treatment.

                    Should this bill be amended to extend this sick leave  
                    credit to existing employees or should the credit be  
                    restricted to new hires?

                   c.        Consistent rules of proof ? The bill permits  
                    employing agencies to adopt rules that require  
                    "(s)ubmission of satisfactory proof that sick leave  
                    granted under this subdivision is used for treatment  
                    of a service-connected disability." In order to avoid  
                    a patchwork of inconsistent rules across myriad state  
                    employers:









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                        i.              Should the bill be amended to  
                         enact a single standard of proof (a) that  
                         establishes that a participating employee has a  
                         current USDVA disability rating of at least  
                         30-percent and (b) that each medical appointment  
                         applied toward this sick leave benefit is  
                         documented as treating only health conditions  
                         associated with the service-connected disability?

                        ii.            Alternatively, should the bill  
                         direct CalHR to promulgate a common "submission  
                         of proof" rule that covers all state employers?
           
          Related Legislation  :

              1.   AB 1522 (Gonzales, Ch. 317, Stats. 2014  )

               Among other things, the "Healthy Workplaces, Healthy  
               Families Act of 2014":

               a.     Provides, for the purposes of this program, that  
                 "employer" includes the state, political subdivisions of  
                 the state, and municipalities.

               b.     Provides that an employee who works in California  
                 for seven or more days in a calendar year is entitled to  
                 paid sick days, as specified, on and after July 1, 2015.

               c.     Provides that an employee shall accrue paid sick  
                 days at the rate of not less than one hour per every 30  
                 hours worked, beginning at the commencement of employment  
                 or the operative date of this bill, whichever is later.

               d.     Provides that an employee shall be entitled to use  
                 accrued paid sick days beginning on the 90th calendar day  
                 of employment, after which the employee may use paid sick  
                 days as they are accrued.

               e.     Provides that an "employee" does not include an  
                 employee covered by a valid collective bargaining  
                 agreement that expressly provides for paid sick days or  
                 similar policy, as specified.










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              1.   AB 1397 (Committee on Veterans Affairs, Ch. 645, Stats.  
               2014  ) adds veterans preference to the list of selection  
               devices that CalHR must review and examine the validity of,  
               and adds veterans status to the list of specified data  
               collected in order to determine utilization of certain  
               groups.

              2.   SB 1563 (Cannella, Ch. 768, Stats. 2012)  requires that a  
               veteran who has completed acceptable training in the U.S.  
               Armed Forces as a military law enforcement officer shall  
               receive 15 preference points in an examination for an open  
               peace officer position in state employment, and states  
               legislative intent with regard to veterans' abilities to  
               become state peace officers.

              3.   AB 1729 (Yamada, Ch. 237, Stats. 2010)  extends, from six  
               months to 12 months, the amount of time a veteran may  
               receive preference points on employment lists resulting  
               from open, nonpromotional civil service examinations.

              4.   SB 644 (Denham, Ch. 357, Stats. 2009)  increases the  
               veterans preference points provided on open,  
               non-promotional state civil service entrance examinations  
               from 10 to 15 points for disabled veterans; and from five  
               to 10 points for all other veterans.

              5.   AB 2550 (Blakeslee, Ch. 494, Stats. of 2006)  Provided  
               qualified members of the California National Guard, or a  
               widow, widower, or spouse of a qualified member, preference  
               points, as specified, for any civil service employment. 

              6.   SB 637 (Baca, Ch. 404, Stats.1999)  made revisions to  
               existing law providing special preferences for the  
               appointment of disabled veterans.



           POSITIONS
           
          Sponsor:  Author

          Support:
          National Association of Social Workers (NASW) - CA Chapter
          American Legion - Department of CA









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          AMVETS - Department of CA
          CA Association of County Veterans Service Officers (CACVSO)
          CA State Commanders Veteran Council
          Military Officers Association of America - CA Council of  
          Chapters
          Veterans of Foreign Wars - Department of CA
          Vietnam Veterans of American - CA State Council

          Oppose:
          None on file


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