BILL NUMBER: SB 310	CHAPTERED  10/03/05

	CHAPTER  455
	FILED WITH SECRETARY OF STATE  OCTOBER 3, 2005
	APPROVED BY GOVERNOR  OCTOBER 3, 2005
	PASSED THE SENATE  SEPTEMBER 7, 2005
	PASSED THE ASSEMBLY  AUGUST 25, 2005
	AMENDED IN ASSEMBLY  AUGUST 22, 2005
	AMENDED IN ASSEMBLY  JUNE 27, 2005
	AMENDED IN ASSEMBLY  JUNE 13, 2005
	AMENDED IN SENATE  APRIL 21, 2005

INTRODUCED BY   Senator Chesbro

                        FEBRUARY 16, 2005

   An act to amend Section 1047 of the Military and Veterans Code,
relating to veterans' homes.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 310, Chesbro  Veterans' homes: funding.
   Existing law requires the administrator of a veterans' home to
maintain a Morale, Welfare, and Recreation Fund to be used for the
general welfare of the residents of veterans' homes.
   This bill would require the fund established for the Yountville
facility to maintain a reserve in the amount of $2,000,000.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The Morale, Welfare, and Recreation Fund is critical to
promoting an enhanced quality of life for residents of veterans'
homes.
   (b) A financially sound Morale, Welfare, and Recreation Fund is
necessary to meet the long-term financial obligations of providing
services and activities for the residents of veterans' homes.
   (c) Annual contributions to the Morale, Welfare, and Recreation
Fund are uncertain and likely to decrease in the coming years.
   (d) A prudent reserve of income-producing funds is desirable to
ensure that services and activities for residents of veterans' homes
are maintained.
  SEC. 2.  Section 1047 of the Military and Veterans Code is amended
to read:
   1047.  (a) The administrator shall maintain a Morale, Welfare, and
Recreation Fund that shall be used, at the discretion of the
administrator and subject to the approval of the secretary, to
provide for the general welfare of the veterans, including, but not
limited to, providing for operations of the Veterans' Home Exchange,
hobby shop, motion picture theater, library, band, and any other
function that is operated for the morale, welfare, and recreation of
the veterans, and to pay for newspapers, chapel expenses, welfare and
entertainment expenses, sport activities, celebrations, and any
other activity that is for the morale, welfare, and recreation of the
veterans.
   (b) Money in the Morale, Welfare, and Recreation Fund may not be
expended for any of the following:
   (1) Medical treatments or any other related treatment.
   (2) Maintenance of the physical plant of the home.
   (3) Any function, operation, or activity that is not directly
related to the morale, welfare, or recreation of the veterans.
   (c) Appropriations from the General Fund for the purposes
described in paragraph (3) of subdivision (b) may not be reduced for
the purpose of, or to have the effect of, requiring increased
expenditures from the Morale, Welfare, and Recreation Fund for those
described purposes.
   (d) The administrator shall prepare an itemized report that is
organized by category and accounts for all expenditures made from the
Morale, Welfare, and Recreation Fund during the previous fiscal year
and shall submit the report on or before August 20 of each year to
all of the following:
   (1) The secretary.
   (2) The fiscal committees of the Assembly and the Senate.
   (3) The committees of the Assembly and the Senate that have
subject matter jurisdiction over veterans' affairs.
   (4) The Veterans' Home Allied Council.
   (e) The Morale, Welfare, and Recreation Fund for the Veterans'
Home of California, Yountville, shall maintain a reserve in the
amount of two million dollars ($2,000,000). The reserve shall be
invested in securities, upon the advice of the Morale, Welfare, and
Recreation Fund Advisory Committee and with the approval of the
administrator and the secretary.