BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2143
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          Date of Hearing:   April 13, 2010

                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
                                 Paul J. Cook, Chair
                    AB 2143 (Gilmore) - As Amended:  April 6, 2010
           
          SUBJECT  :   The Department of Veterans Affairs: consolidation of  
          services to veterans.

           SUMMARY  :   This bill establishes the California Veterans  
          Services and Workforce Development Division within the  
          Department of Veterans Affairs for the purpose of coordinating  
          and administering veterans' assistance programs in the state,  
          and would require the division to perform various functions and  
          duties relating to the coordination and administration of  
          veterans assistance programs.  Specifically,  this bill  :  

          1.Coordinates provisions benefits and assistance with the  
            California Department of Veterans Affairs and other state  
            agencies that to veterans to ensure that information about  
            veterans assistance programs and benefits is made available to  
            all state agencies that serve veterans in the state.

          2.Allows the California Department of Veterans Affairs to  
            administer the Transitional Assistance Program (TAP) and the  
            Disabled Veterans' Outreach Program (DVOP), in cooperation  
            with the Employment Development Department, by developing in  
            conjunction Employment Development Department a plan whereby  
            responsibility for the administration of Transitional  
            Assistance Program (TAP) and the Disabled Veterans' Outreach  
            Program (DVOP) shall be transferred from the Employment  
            Development Department to the division.

          3.Ensures that other state agencies and officials that are  
            involved in the implementation and administration of veterans  
            services programs are informed when any changes in existing  
            programs are required, or new programs are established that  
            provide assistance and benefits to veterans, and require that  
            those agencies and officials report to the division when those  
            changes occur or new programs are established.

          4.Collaborates with staff from other state agencies including,  
            but not limited to, the Labor and Workforce Development  
            Agency, the Employment Training Panel, the California  
            Workforce Investment Board, the State Department of Mental  








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            Health, the Department of General Services, the State  
            Department of Alcohol and Drug Programs, and representatives  
            of the University of California, the California State  
            University, and the California Community Colleges with regard  
            to the provision of veterans services and benefits.

           EXISTING LAW  :

             1.   Establishes the Department of Veteran's Affairs within  
               state government and sets forth its powers and duties,  
               including, but not limited to, administration of veterans  
               benefits programs. Also, existing law establishes within  
               the California Department of Veterans Affairs, the Veterans  
               Service Division.

             2.   Establishes the California Veterans Board within the  
               department and sets forth its powers and duties, including,  
               but not limited to its power to determine operational  
               policy for the department.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   

           Texas Outreach Model
           
          In 2005, the United States Department Veterans Affairs sent $6  
          billion in funding to the state of California.  Of this amount,  
          $2.66 billion was in the form of disability payments to  
          veterans.  However, Texas, with a veteran population of only 1.7  
          million, collected 44 percent more in veteran disability  
          payments than California.

          The genesis for the introduction of AB 2143 was the success of  
          the Texas model.  In a span of only two years, Texas increased  
          the amount of veterans receiving federal benefits from 12.3  
          percent to 16.1 percent.  As a result, Texas has the highest  
          compensation payout of the seven states with the largest veteran  
          populations.
           
           In 2005, the Texas veteran workforce program ranked 32nd in the  
          nation in veteran employment and retention.  The following year,  
          legislation was passed to transfer the program from the Texas  
          Workforce Commission (TWC) to the Texas Veterans Commission  
          (TVC).  Today, Texas is considered to have one of the strongest  








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          veteran workforce and job training programs in the nation  
          ranking 86% in veteran employment retention, according to the  
          DEPARTMENT OF LABOR'S VETERANS EMPLOYMENT TRAINING SERVICE,  
          "Performance Outcomes by State" quarterly report ending June 30,  
          2009.  

          Texas' prior poor performance was attributed to a lack focus and  
          limited ability to provide direct assistance to unemployed  
          veterans.  The veteran representatives at the Texas One Stops  
          served a variety of client groups including veterans.  Once the  
          workforce programs were transferred, the TVC convened a veteran  
          stakeholder focus group to develop clear performance standards  
          and reporting requirements to help guide the program.  In  
          addition, the veteran representatives at the One Stops were  
          directed to exclusively serve veterans as guided by the newly  
          established standards.  

          By the End of 2007 Texas' rankings in the Veteran Employment  
          Retention report had risen from 32% to 86%, 11th best state  
          program in the nation.  

          In 2007 Texas had increased the percentage of veterans receiving  
          benefits to 16.1%, as compared to the 12.3% of California  
          veterans who receive benefits.  There are approximately 1.7  
          million Texas veterans, of those 273,852 were receiving  
          compensation or pensions, as opposed to California with 2.1  
          million veterans and only 258,923 receiving compensation or  
          pensions.  Below is a chart that gives a more comprehensive  
          comparison of benefits from the top seven most veteran populated  
          states.

           Job Training and Employment Service to Veterans
           
          Currently, California receives $18 million dollars annually from  
          the United States Department of Labor to pay for approximately  
          180 workforce training staff.  Assigned to positions within the  
          Employment Development Department, these federally funded staff  
          are dedicated to serving the needs of veterans.  Some of the  
          staff are stationed in Sacramento, while others are spread  
          throughout the state at the Employment Development Department's  
          one-stop job centers.

          The governor has also recently announced the creation of his  
          "Operation Welcome Home" for California veterans.  Within that  
          effort is a plan for the Employment Development Department to  








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          hire 325 limited term employees beginning January 2010 to make  
          up the Cal-Vet Corps. The governor intends for these employees  
          to help newly discharged veterans access the benefits and  
          services they need to successfully enter the civilian workforce.

          In addition to the efforts outlined above, the state currently  
          spends in excess of $500 million in a variety of job training  
          efforts.  Those programs, while not targeted exclusively at  
          serving veterans, would be available for most veterans to  
          access, if they meet the eligibility requirements of the  
          programs.

          The California Employment Development Department is responsible,  
          in coordination with the California Workforce Investment Board,  
          for administering a federal Department of Labor - Veterans  
          Employment Training grant.  Disabled Veterans Outreach Program  
          operated under the federal rules and regulations but no state  
          regulations have been created to codify this program.

          Through the Employment Development Department's One-Stop system,  
          veteran customers may elect self-service, facilitated self-help,  
          or staff-assisted one-on-one service. Most veterans are able to  
          use the self-service systems and will self-identify as veterans  
          to establish their eligibility for veterans' priority. The Local  
          Veterans Employment Representative and Disabled Veterans  
          Outreach Program staff members are available at One-Stop Career  
          Centers to provide facilitated self-help or staff-assisted  
          service to veterans who require additional assistance. Local  
          Veterans Employment Representative and Disabled Veterans  
          Outreach Program staff screen veterans for potential barriers to  
          employment and identify the need for additional services. At  
          each One-Stop center, LVER and DVOP staff will raise veterans'  
          issues, including efforts to expand information provided to  
          veterans regarding available services. 

          At the request of One-Stop partners, Local Veterans Employment  
          Representative and Disabled Veterans Outreach Program staff may  
          also be assigned to other locations that serve large veteran  
          populations; and case management services for veterans are  
          customer-focused and customer-driven. These include referrals  
          from the Department of Veterans Affairs Vocational  
          Rehabilitation and Counseling system. Veterans are provided  
          choices based upon need and the resources available to meet  
          those needs. When necessary and when appropriate, customers will  
          be assisted in accessing resources outside of the One-Stop  








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          systems.

          The One-Stops, administered through local workforce investment  
          boards, are a statewide network of centers that provide  
          employment, education, and training services all in one  
          location.  The One-Stops work with public and private non-profit  
          partners to provide their services.  The One-Stops include  
          programs such as Job Services, Unemployment Insurance,  
          Vocational Education, and Vocational Rehabilitation including  
          services particularly targeted to veterans.


          The Transition Assistance Program is a federal program that was  
          created to assist military personnel that are preparing to  
          separate or retire.  This program is a cooperative effort  
          between Department of Labor's Veterans Employment Training  
          Service, the Department of Defense (DOD), Department of Homeland  
          Security (DHS) and the U.S. Department of Veteran Affairs  
          (USVA).  This program was instituted in 1990 and has provided  
          job preparation assistance to over 2 million separating and  
          retiring members of the military.  

          In FY 2008, following a strategic planning exercise with the  
          DOD, the USVA and representatives from private industry worked  
          on creating a standard Transition Assistance Program  
          presentation.  If you are stationed within the U.S. the  
          Transition Assistance Program classes are given by local  
          DVOP/LVERs.  When stationed overseas the DOD provides the  
          Transition Assistance Program classes.  The curriculum covers  
          two-and-a-half days of classroom instruction and provides  
          information on a variety of topics from career assessment to  
          health issues.

           The California Department of Veterans Affairs Operational  
          Capabilities
           
          The mission of the California Department of Veterans Affairs  
          (department) is to serve these veterans and their families by  
          providing rehabilitative, residential, and medical care services  
          to the State's aged or disabled veterans; providing veterans  
          with direct low-cost loans to acquire
          farms and homes; and providing veterans and their families with  
          aid and assistance in presenting their claims for federal,  
          state, and local veterans' benefits.









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          The department does not consider its role to include providing  
          direct services that are already offered by other agencies;  
          rather, the services the department provides to veterans exist  
          within a
          larger service delivery system that it relies its Veterans  
          Services Division to connect and coordinate with. This service  
          delivery system consists of a variety of key players that  
          provide direct services to veterans, including the federal VA,  
          certain state agencies, veterans' service organizations, and  
          counties.

          The October 27, 2009 audit report published by the California  
          State Auditor identified the Department of Alcohol and Drug  
          Programs, the EDD, the Employment Training Panel, the Department  
          of Housing and Community Development, the Labor and Workforce  
          Development Agency, the Department of Mental Health, and the  
          Military Department as examples of other state entities that  
          might serve veterans.   The audit findings found that the  
          California Department of Veterans Affairs has collaborated with,  
          or is making efforts to collaborate with, the all of these state  
          entities mentioned in this paragraph.  However, there are few  
          formal agreements with the state entities that the Veterans  
          Services Division collaborates with.  Therefore they are unable  
          to be accountable or hold any one accountable for the agreed  
          upon services and unable to ensure that these services could  
          continue despite staff turnover, changes in agency priorities,  
          or other factors that could erode collaborative efforts.

           The Audit reveal shortcomings at the California Department of  
          Veterans Affairs
           
          The October 27, 2009 audit report published by the Bureau of  
          State Audits found that the Department of Veterans Affairs  
          provides few direct services to veterans, outside of its  
          operation of the Veterans' Homes of California and the CalVet  
          Farm and Home Loan program, and that the department has  
          extremely limited interaction and few formal agreements with  
          other state agencies and departments that could provide  
          additional services to veterans if done in a coordinated and  
          efficient manner.

          The 2009 audit additionally noted that the Department of  
          Veterans Affairs strategic plan covering the 2007-08 to 2011-12  
          fiscal years, inclusive, was incomplete and has not formally  
          assessed veterans' needs, has not included key stakeholders in  








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          its strategic planning process, and has not effectively measured  
          its progress towards meeting the goals and objectives identified  
          in the plan.

          The 2009 audit additionally confirmed that California's veterans  
          participate in federal disability and pension benefits at rates  
          that are significantly lower than those in other states with  
          large veteran populations. These disability payments are paid  
          directly to the veterans and generate a significant contribution  
          to California's economy.

           Employment Development Departments problem to adequately service  
          veterans
           
          Although, the California Employment Development Departments is  
          in charge of 9 different programs that are suppose to provide  
          services to veterans only the DVOP/LVER program has accurate  
          numbers that can be used to evaluate the quality of service to  
          veterans.  The Department of Labor-VETS programs has California  
          being ranked as 48th in job placement of veterans receiving  
          assistance and with one-in-nine veterans being unemployed.

           Questions for Committee Members
           
          Which department is best suited to deliver high quality job  
          training and employment services to veterans?  The Employment  
          Development Department and the California Department of Veterans  
          Affairs are charged with helping veterans find services and both  
          a have shown they are challenged at meeting the requirements of  
          providing veterans quality service.  

          Should the California Department of Veterans Affairs be  
          entrusted to administer another program?  This would put this  
          department in the business of providing a direct service outside  
          of the arena of the CalVet Home Loan Program and the  
          administration of the Veterans Home of California.

          Should we consider giving all the job training and employment  
          programs to the California Department of Veterans Affairs,  
          instead of seeking improvement within the Employment Development  
          Division?  The rational for giving this department an  
          opportunity to show it can properly provide direct services to  
          veterans can be applied to all the programs that provide  
          services to veterans.  All these programs make up and continuum  
          of job services that veterans need to gain employment in the  








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          civilian world.  

           Related Legislation
           
          AB 1372 (V.M. Perez) - Implements the Veterans Workforce  
          Accountability Act under the administration of the California  
          Workforce Investment Board (CWIB) for the purposes of providing  
          a method for the comprehensive outcome-oriented evaluation on  
          the effectiveness of the state's expenditures for veteran  
          workforce development programs.  

          AB 1569 (Committee on Veterans Affairs) - This bill would create  
          in state government the California Interagency Council on  
          Veteran Services and Programs, composed of specified members,  
          for the purpose of bringing together key state agencies and  
          departments, federal officials, legislative representatives,  
          local governments, and stakeholder organizations to ensure that  
          the state's programs that serve veterans are efficiently  
          administered and properly integrated with federal and local  
          government and other stakeholder organizations.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Legion, Department of California
          AMVETS, Post 140
          California Association of County Veterans Service Officers  
          Veteran of Foreign Wars, Department of California
          Vietnam Veterans of America-CA State Council

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Eric Worthen / V. A. / (916) 319-3550