BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1383


                                                                      Page  1





          ASSEMBLY THIRD READING


          AB  
          1383 (Jones)


          As Amended  May 28, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Labor           |7-0   |Roger Hernández,     |                     |
          |                |      |Harper, Chu, Low,    |                     |
          |                |      |McCarty, Patterson,  |                     |
          |                |      |Thurmond             |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,      |                     |
          |                |      |Bonta, Calderon,     |                     |
          |                |      |Chang, Daly, Eggman, |                     |
          |                |      |Gallagher,           |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Gordon, Holden,      |                     |
          |                |      |Jones, Quirk,        |                     |
          |                |      |Rendon, Wagner,      |                     |
          |                |      |Weber, Wood          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
           ------------------------------------------------------------------- 









                                                                      AB 1383


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          SUMMARY:  Establishes the "Voluntary Veterans' Preference  
          Employment Policy Act" for employers to grant a veteran preference  
          in hiring, and expands the veteran's preference exception to all  
          veterans, regardless of when they served.  


          EXISTING LAW:  


          1)Provides that it is unlawful for any employer to discriminate  
            against, to refuse to hire or employ a person or to refuse to  
            select or train that person in any apprenticeship training  
            program or any other training program leading to employment  
            because of the race, religious creed, color, national origin,  
            ancestry, physical disability, mental disability, medical  
            condition, genetic information, marital status, sex, gender,  
            gender identity, gender expression, age, sexual orientation, or  
            military and veteran status of the person discriminated against.
          2)Provides that it is unlawful for an employer, labor  
            organization, employment agency, apprenticeship training program  
            or any training program leading to employment, or any other  
            person, because of race, religious creed, color, national  
            origin, ancestry, physical disability, mental disability,  
            medical condition, genetic information, marital status, sex,  
            gender, gender identity, gender expression, age, sexual  
            orientation, or military and veteran status, to harass an  
            employee, an applicant, or a person providing services pursuant  
            to a contract.


          3)Allows employers, under the California Fair Employment and  
            Housing Act (FEHA) to use veterans' status as a factor in  
            employee selection or to give special consideration to  
            Vietnam-era veterans.


          FISCAL EFFECT:   According to the Assembly Appropriations  
          Committee, ongoing General Fund administrative costs to the  








                                                                      AB 1383


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          Department of Veteran Affairs in the range of $195,000 to  
          $365,000.  It is difficult to estimate the number of inquiries the  
          department would receive related to veteran verification. There  
          are 2 million veterans in California; roughly half are of working  
          age.  For illustration, if the department were to process 2,500  
          inquires annually; administrative costs would be in the lower end  
          of this range. 


          COMMENTS:  The author points out, that currently California  
          already has a veteran's preference exception in Government Code  
          Section 12940(a)(4) and argues the problem with the existing law  
          is that it is arguably outdated and narrow.  In its current state,  
          this veteran's preference exception only applies to Vietnam War  
          era veterans and only immunizes employers from gender  
          discrimination claims.  This is problematic because the amount of  
          Vietnam War era veterans who are looking to utilize this  
          preference exception is steadily declining due to the fact that  
          many of these veterans are no longer searching for employment.   
          Also, it omits any veteran that did not serve in the Vietnam War  
          era and clearly limits the amount of people who can use this  
          veteran's preference. 


          The author is seeking to correct an outdated law, which only  
          allows for a business to create a preference for Vietnam War era  
          veterans.  While the original legislation was relevant when first  
          adopted, the existing law is now lacking because it only provides  
          preference to Vietnam War era veterans, and does not encompass all  
          veterans. 


          According to the National Conference of State Legislatures,  
          similar veteran's preference laws have recently been enacted in  
          Arkansas, Florida, Idaho, Iowa, Maine, Massachusetts, Minnesota,  
          North Dakota, South Carolina, Virginia and Washington.  Also,  
          similar measures are currently pending in Alaska, Indiana,  
          Montana, Nebraska, New Hampshire, Oklahoma, South Dakota,  
          Tennessee, Texas, and Utah.








                                                                      AB 1383


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          Supporters state that despite the popular nature of these bills  
          and a universal desire to assist veterans, some employers and  
          human resource professionals have expressed concern that  
          exercising such a preference might inadvertently create litigation  
          under state or local anti-discrimination laws.  This law allows an  
          employer to establish a voluntary veterans hiring preference  
          policy and clarifies that exercising such a preference would not  
          violate state or local anti-discrimination laws.  Lastly, they  
          state that by limiting this preference to hiring decisions, this  
          bill is narrowly focused and intended to remedy the immediate  
          problem of higher than normal unemployment rates for veterans and  
          removes veteran-related hiring barriers.



          There is no opposition on file.




          Analysis Prepared by:                                               
                          Lorie Alvarez / L. & E. / (916) 319-2091  FN:  
          0000568