BILL ANALYSIS �
AB 2261
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Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2261 (Gorell) - As Amended: April 22, 2014
Policy Committee: Veterans
AffairsVote: 9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes the California Veterans Services and
Workforce Development Division (Division) within the Department
of Veterans Affairs (CalVet) to coordinate and administer
veterans assistance programs in the state with duties as
specified.
This bill essentially transfers these functions - including
staff and resources - from the Employment Development Department
(EDD) to CalVet. The bill requires the Division to coordinate
with EDD to transfer programs and personnel from EDD, and
specifies any costs incurred by CalVet in implementing the
transfer be paid with existing CalVet resources.
FISCAL EFFECT
1)Notwithstanding the bill's specification that CalVet absorb
any transfer costs, CalVet will incur one-time administrative
costs, likely in the low hundreds of thousands of dollars, to
establish and organize the new division and transition the
specified programs and staff from EDD to the new division.
2)EDD would likely incur minor one-time transition costs
associated with the relocation of staff and programs to the
CDVA. There are approximately 180 federally-funded positions
at EDD involved in the impacted programs.
COMMENTS
1)Rationale . The genesis for this bill is the success of the
Texas model for providing veterans benefits. In 2005, the
AB 2261
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Texas veteran workforce program ranked 32nd in the nation in
veteran employment and retention. The following year,
legislation was enacted to transfer the program from the Texas
Workforce Commission (TWC) to the Texas Veterans Commission
(TVC), which provided more focus on-site in the delivery of
veterans' services. Today, Texas is considered to have one of
the strongest veteran workforce and job training programs in
the nation.
The author contends many veterans experience significant
difficulty finding employment. The author maintains the
state's current efforts do not have a stellar record in aiding
veterans with employment assistance and training programs.
According to the California Research Bureau's report: Overview
of Veterans in California (March 2013), California has about
1.9 million veterans. Almost one million are over the age of
60 (52.3%). Most live in Southern California counties, and are
heavily clustered in cities.
2)Is the Texas model the right fit for California ? While this
approach may ultimately prove successful to some degree,
administrative transitions take time, money and experience to
implement - all particularly challenging in a time of
increasing service demand and decreasing budgets.
Should CalVet move toward a model in which it is more a
service provider, rather than a service broker?
3)Related Legislation . There have been several efforts in recent
years to shift veterans workforce assistance programs from EDD
to another agency.
a) AB 1268 (John A. Perez, 2013), which establishes a
Veterans Workforce Development and Employment Office within
the Labor and Workforce Development Agency, is pending on
the Senate floor.
b) AB 171 (Chavez), 2013, which establishes the California
Veterans Services and Workforce Development Division within
CalVet, was never heard.
c) AB 1931 (Gorell), 2012, which establishes the California
Veterans Services and Workforce Development Division within
CalVet, was held on the Senate Appropriations Suspense
AB 2261
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File.
Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081