BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2261
                                                                  Page  1

           Date of Hearing:   April 29, 2014

                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
                              Sharon Quirk-Silva, Chair
                    AB 2261 (Gorell) - As Amended:  April 22, 2014
           
          SUBJECT  :  Veterans Services and Workforce Division: veterans'  
          benefits.

           SUMMARY  :  Establishes 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 with  
          duties 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), as specified.  Specifically,  this bill  :  

          1)Makes findings and declarations in support of modifying the  
            services delivery system to veterans and in support of  
            consolidating specified programs under the Department.

          2)Establishes the Division in the Department for the purpose of  
            coordinating and administering veterans assistance programs  
            provided by the state. 

          3)Directs that the Department Secretary shall have authority  
            over the Division.

          4)Mandates that Division shall do all of the following:

             a)   Coordinate with state entities that provide a benefit or  
               assistance to veterans to ensure both of the following:

               i)     State entities provide information to veterans  
                 regarding all other assistance programs and benefits  
                 provided by the state.

               ii)    State entities are aware of changes in existing  
                 veterans programs or the establishment of new veterans  
                 programs provided by the state.

             b)   Collaborate with the California Interagency Council on  
               Veterans to implement further strategic changes to the  
               delivery of veterans services.








                                                                  AB 2261
                                                                  Page  2


          5)Mandates that beginning on or before July 1, 2015, the  
            Division shall administer the programs and services described  
            in the federal Jobs for Veterans State Grant Program,  
            including, but not limited to, overseeing the federal Local  
            Veterans' Employment Representatives program (LVER), the  
            Transition Assistance Program (TAP), and the Disabled  
            Veterans' Outreach Program (DVOP) (collectively the Programs).

          6)Requires the Division to coordinate with the EDD for the  
            transfer of the administration of the Programs from the EDD to  
            the Division, including, but not limited to, all of the  
            following:

             a)   Transferring to the Division employees serving in state  
               civil service, other than temporary employees, who are  
               engaged in the performance of the administration of the  
               Programs.  Mandates that the status, positions, and rights  
               of those persons shall not be affected by their transfer  
               and shall continue to be retained by those persons pursuant  
               to the State Civil Service Act (Part 2 (commencing with  
               Section 18500) of Division 5 of Title 2 of the Government  
               Code), except as to positions the duties of which are  
               vested in a position exempt from civil service. Also  
               mandates that the personnel records of all transferred  
               employees shall be transferred to the Division.

             b)   Transferring to the division all records of the EDD  
               related to the administration of the Programs. The  
               Department of General Services shall resolve any questions  
               of which records should be transferred.

             c)   Transferring to the Division all unexpended balances of  
               appropriations and other funds available for use for the  
               administration of the Programs for expenditure for the  
               purpose for which the appropriation was originally made or  
               the funds were originally available. The Department of  
               Finance shall resolve any questions of where the balances  
               and funds should be transferred.

          7)Mandates that any costs incurred by the Department in  
            implementing the transfer shall be paid utilizing existing  
            resources of the Department.

           EXISTING LAW  :








                                                                  AB 2261
                                                                  Page  3


          1)Establishes the Department of Veterans 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.

           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.

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

          As a part of "Operation Welcome Home," a program from the  
          previous administration for California veterans, the EDD 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  








                                                                  AB 2261
                                                                  Page  4

          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 EDD is responsible, in coordination with the California  
          Workforce Investment Board, for administering a federal  
          Department of Labor Veterans Employment Training grant.  The  
          DVOP operates 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 LVER  
          and DVOP staff members are available at One-Stop Career Centers  
          to provide facilitated self-help or staff-assisted service to  
          veterans who require additional assistance. LVER and DVOP staff  
          screen veterans for potential barriers to employment and  
          identify the need for additional services. At each One-Stop  
          center, LVER and DVOP staff also undertake to expand information  
          provided to veterans regarding available services. 

          At the request of One-Stop partners, LVER and DVOP 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 TAP is a federal program that was created to assist military  
          personnel that are preparing to separate or retire.  This  








                                                                  AB 2261
                                                                  Page  5

          program has recently undergone a substantial change and is now  
          known as the Transition Goals, Plans, and Success (TGPS)  
          program.  TGPS attempts to improve upon the previous TAP in  
          several ways, including permitting some customization to  
          individual servicemembers' needs.  

           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.

          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.








                                                                  AB 2261
                                                                  Page  6

           
          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  
          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 EDD and  
          Department are charged with helping veterans find services and  
          both have shown they are at times challenged at meeting the  
          requirements of providing quality service to veterans.  This  
          would put this department in the business of providing a direct  
          service outside of the CalVet Home Loan Program and the  
          administration of the Veterans Home of California.
           Related Legislation  :

          AB 1268 (John A. Perez, 2013) is on the Senate floor and  
          conflicts with the instant measure.  It would establish a  
          Veterans Workforce Development and Employment Office within the  
          Labor and Workforce Development Agency and transfer the Programs  








                                                                  AB 2261
                                                                  Page  7

          to that division.
           
           Several similar bills have attempted various similar transfers  
          and consolidations but have been unsuccessful: 

          AB 171 (Chavez, 2013)
          AB 1931 (Gorell, 2012)
          AB 748 (Gilmore, 2009)
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Association of Retired Persons
          American Legion, Department of California
          AMVETS, Department of California
          California Association of County Veterans Service Officers
          California State Commanders Veterans Council
          Military Officers Association of America, California Council of  
          Chapters
          Veterans of Foreign Wars, Department of California
          Vietnam Veterans of America, California State Council

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