BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1931
                                                                  Page  1

          Date of Hearing:   April 24, 2012

                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
                                 Paul J. Cook, Chair
                    AB 1931 (Gorell) - As Amended:  April 16, 2012
           
          SUBJECT  :   Department of Veterans Affairs: consolidation of 
          services to veterans.

           SUMMARY  :   This bill would establish the California Veterans 
          Services and Workforce Development Division (Division) within 
          the Department of Veterans Affairs (Department) 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, as specified.  
          Requires the administrative and support staff responsible for 
          the administration of the specified programs to be transferred 
          from the Employment Development Department (EDD) to the 
          Division, and would require the costs of the transfer to utilize 
          existing resources of the Department.  Specifically,  this bill  :  


          Establishes the Division within the Department for the purpose 
          of coordinating and administering veterans assistance programs 
          in the state. The Secretary of Veterans Affairs shall have 
          authority over the Division.

          States that the Division shall do all of the following:

          Coordinate with other state agencies that provide benefits and 
          assistance 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.

          Administer the Transition Assistance Program (TAP) and oversee 
          the duties of Local Veterans' Employment Representatives (LVER) 
          as prescribed under the federal Jobs for Veterans State Grants 
          program, in cooperation with the Employment Development 
          Department (EDD). The division shall work with staff from the 
          EDD to develop a plan whereby responsibility for the 
          administration of TAP and the LVER shall be transferred from the 
          EDD to the division. The development of the plan shall be 
          completed on or before May 1, 2013.









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          Requires the Division to inform other state agencies and 
          officials that are involved in the implementation and 
          administration of veterans services programs when any changes in 
          existing programs are required, or new programs are established 
          that provide assistance and benefits to veterans

          Requires that those agencies and officials report to the 
          Division when those changes occur or new programs are 
          established.

          Requires the Division to coordinate 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 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.
          Directs that all administrative and support staff responsible 
          for the administration of TAP and the LVER shall be transferred 
          from the EDD to the Division.

          Directs that any costs associated with the implementation of 
          these transfers shall utilize existing resources of the 
          Department, as the operational cost of these programs utilizes 
          funding from the Jobs for Veterans State Grant program, as 
          prescribed within the United States Department of Labor.

           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 at this time.









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           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.

          According to the author, 

               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).   

               By the end of 2007, Texas' employment retention rate had 
               risen from 32 to 86 percent.
           
           According to the DEPARTMENT OF LABOR'S VETERANS EMPLOYMENT 
          TRAINING SERVICE, "Performance Outcomes by State" quarterly 
          report ending December 31, 2010, 

           ---------------------------------------------------------------- 
          |State       |Entered     |Employment  |Entered     |Employment  |
          |            |Employment  |Retention   |Employment  |Retention   |
          |            |Rate        |Rate        |Rate        |Rate        |
          |            |            |            |(Disabled   |(Disabled   |
          |            |            |            |veteran)    |veteran)    |
          |------------+------------+------------+------------+------------|
          |California  |33          |73          |31          |74          |
          |------------+------------+------------+------------+------------|
          |Texas       |50          |80          |47          |81          |
           ---------------------------------------------------------------- 

          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 








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          addition, the veteran representatives at the One Stops were 
          directed to exclusively serve veterans as guided by the newly 
          established standards.  
           
          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.

          As a part of "Operation Welcome Home," a program from the 
          previous administration for California veterans, the Employment 
          Development Department hired approximately 325 limited term 
          employees beginning January 2010 to make up the Cal-Vet Corps.  
          EDD used these personnel to help newly discharged veterans 
          access the benefits and services they need to successfully enter 
          the civilian workforce.  This program has been discontinued 
          under the current administration.

          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.  The 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 








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          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 
          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.  

           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 








                                                                  AB 1931
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          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.

          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 on 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 are 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 reveals 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 








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          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 
          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.

           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 
          have shown they are challenged at meeting the requirements of 
          providing quality service to veterans.  

          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 a continuum of 
          job services that veterans need to gain employment in the 
          civilian world.  

           REGISTERED SUPPORT / OPPOSITION  :   









                                                                  AB 1931
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           Support 
           
          American Legion- Department of California
          AMVETS- Department of California
          California Association of County Veteran Service Officers
          California State Commanders 






           Opposition 
           
          None on File
           
          Analysis Prepared by  :    John Spangler / V. A. / (916) 319-3550