Though required by the Code of Virginia (§ 9-86) to make a biennial report to the Governor, Attorney General, and General Assembly on matters affecting Virginia's veterans, the Commission has not, in fact, so reported since 1976 (see House Document No. 18 of that year). Largely because of inadequate funding, the Commission remained inactive until late 1978. On the recommendation of the Commission, the 1979 General Assembly made technical amendments to the Commission's enabling legislation (Chapter 10 of Title 9 of the Code of Virginia, §§ 9-85 et seq.) which regularized its reporting duties and permitted  Commission members to be compensated and reimbursed for their expenses at the same rate as members of other legislative study bodies (see Chapter 383 of the 1979 Acts of Assembly).

In 1979 the Commission conducted public hearings on the needs of Virginia's veterans in Richmond, Norfolk, Roanoke, and Fairfax. These meetings were attended by representatives of various veterans' organizations, veterans' programs administrators of institutions of higher education, State and local officials, individual veterans, and surviving dependents of veterans. Testimony was extensive.

The general thrust of statements made to the Commission was that though the Division of War Veterans' Claims (the only operating State agency charged specifically with veteran-related duties) was doing an admirable job, considering its small size and limited budget, a great many of the needs of Virginia's veterans' needs are either going unmet, or are being very poorly met, when Virginia is compared to other states. It was found to be desirable not only to better provide for Virginia's veterans, but to consider steps to induce an increasing number of military retirees to settle permanently in Virginia. The Commission urges the adoption of a number of legislative measures (see Appendix I), and the undertaking of a number of administrative actions (see Recommendations) which will move toward these goals.