BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 1931 (Gorell) - Veterans Services
          
          Amended: July 5, 2012           Policy Vote: VA 7-0
          Urgency: No                     Mandate: No
          Hearing Date: August 6, 2012                           
          Consultant: Maureen Ortiz       
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 1931 establishes the California Veterans 
          Services and Workforce Development Division within the 
          Department of Veterans Affairs (DVA) for the purpose of 
          coordinating and administering veterans' assistance programs, 
          and transfers those programs from the Employment Development 
          Department (EDD) to the DVA.

          Fiscal Impact:  

              The Department of Veterans Affairs will incur one-time 
              administrative costs, likely about $200,000 to establish and 
              organize the new division, and to transition the specified 
              programs and staff from EDD.  Additional ongoing costs are 
              expected of $150,000 to coordinate and collaborate with 
              other state agencies providing veterans services.  (General)

              The transfer of the DVOP, the LVER, and TAP programs will 
              necessitate the reallocation of approximately $18 million 
              and about 180 workforce training positions in annual federal 
              Jobs for Veterans State Grant funds from the EDD to DVA. 
              (Federal)

          Background:  The Transition Assistance Program (TAP) 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 (USDVA).  The program was implemented in 1990 
          and has provided job preparation assistance to over 2 million 
          separating and retiring members of the military.  









          AB 1931 (Gorell)
          Page 1



          The Local Veterans' Employment Representatives (LVER) program, 
          also federally funded, provides job placement and support 
          services directly to qualified veterans.  It is designed to 
          ensure that veterans receive the maximum assistance in 
          employment and training opportunities. 

          AB 1931 is modeled after a similar program in Texas which 
          involved the transfer of veterans assistance programs from the 
          Texas Workforce Commission to the Texas Veterans Commission.  
          The Texas reorganization has resulted in that state having one 
          of the strongest veteran workforce and job training programs in 
          the nation.

          Proposed Law:  AB 1931 provides that the new division within the 
          Department of Veterans Affairs shall do all of the following:

             a)   Coordinate with other state agencies, including the 
               California Interagency Council on Veterans, 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. 

             b)   Administer the programs and services described in the 
               federal Jobs for Veterans State Grant Program including the 
               Local Veterans' Employment Representatives (LVER) program , 
               the Transition Assistance Program (TAP), and the Disabled 
               Veterans' Outreach Program (DVOP).

             c)   Ensure that other state agencies and officials that are 
               interested in the implementation and administration of 
               veterans services programs are informed when any changes in 
               existing programs are required, as well as when new 
               programs are established, and to provide assistance and 
               benefits to veterans.

          These programs are currently administered by the Employment 
          Development Department.  AB 1931 requires the new division to 
          work with EDD to develop a plan by May 1, 2013 to outline the 
          transfer of the responsibility for administration of these 
          programs.

          Additionally, AB 1931 transfers all administrative and support 








          AB 1931 (Gorell)
          Page 2



          staff responsible for the administration of LVER, TAP, and DVOP 
          from the Employment Development Department to the new division 
          at the Department of Veterans Affairs, and requires that any 
          costs associated with the implementation of these transfers come 
          from existing resources of the Department of Veterans Affairs.

           Job Training and Employment Service to Veterans
           
          Currently, California receives $18 million 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.  

          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 








          AB 1931 (Gorell)
          Page 3



          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 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 are 
          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.  They work with public and private non-profit partners 
          to provide their services and 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








          AB 1931 (Gorell)
          Page 4



           
          The mission of the California Department of Veterans Affairs is 
          to serve veterans and their families by providing 
          rehabilitative, residential, and medical care services to the 
          State's aged or disabled veterans; provide veterans with direct 
          low-cost loans to acquire farms and homes; and to provide 
          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 
          DVA, certain state agencies, veterans' service organizations, 
          and counties.

          Related Legislation:  This bill is similar to AB 2143 (Gilmore) 
          of 2010, and to AB 882 (Cook) of 2011, both of which were 
          amended in the Assembly Appropriations Committee where the 
          transfer from EDD to DVA provisions were deleted.

          Staff Comments:  Staff notes that effective November 2012, 
          federal legislation mandates that the U. S. Department of Labor 
          contract all TAP instruction services to private entities rather 
          than state administration of the program.  Consequently, it may 
          not be appropriate to include the TAP program in the transfer 
          from EDD to DVA, as EDD will no longer have administrative 
          authority over TAP beginning November 2012.  Additionally, all 
          funds relating to TAP will remain with the U. S. Department of 
          Labor.