BILL ANALYSIS AB 1757 Page 1 ASSEMBLY THIRD READING AB 1757 (Monning) As Amended May 28, 2010 Majority vote VETERANS AFFAIRS 7-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Cook, Salas, Block, |Ayes:|Fuentes, Conway, Ammiano, | | |Gilmore, | |Bradford, Charles | | |V. Manuel Perez, Saldana, | |Calderon, Coto, Davis, | | |Yamada | |Monning, Ruskin, Harkey, | | | | |Miller, Nielsen, Norby, | | | | |Skinner, Solorio, | | | | |Torlakson, Torrico | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Expands the eligible uses of the California Central Coast State Veterans Cemetery at Fort Ord Endowment Fund (Fort Ord Endowment Fund), which was previously established for purposes of generating income to cover the annual operations and maintenance costs of the proposed Central Coast Veterans Cemetery. Provides that funds also cover the costs of project design and development of all documents necessary for construction. Specifies that construction cannot proceed until the Fort Ord Endowment Fund is sufficient to cover annual operating costs. FISCAL EFFECT : The United States Department of Veterans Affairs' current cost estimate to complete preliminary plans and working drawings, using endowment funds, is about $800,000. COMMENTS : The military base at Fort Ord was established in 1917, and in 1940 was declared a permanent Army post. In 1991, Fort Ord was announced for closure by the United States Base Realignment and Closure Commission. Prior to its closure, the Fort Ord Reuse Authority (FORA) set aside 204 acres for the development of a Central Coast Veterans' Cemetery. Attempts at having a federally funded national cemetery at the Fort Ord location failed because federal regulations prohibit the development of a national veterans' cemetery within 75 miles of another national veterans' cemetery. Fort Ord is located AB 1757 Page 2 within 75 miles of the San Joaquin Valley National Veterans' Cemetery in Gustine. An alternative to a national veterans' cemetery is the establishment of a state cemetery. The Federal government will pay 100% of construction costs for a state run veterans' cemetery, however, the state is responsible for paying the annual maintenance and operation costs which have been estimated at approximately $500,000 per year. The state committed to maintain the cemetery as a part of the initial application for construction funding. Numerous legislative attempts to establish the creation of the cemetery at Fort Ord had failed due to the impact on the General Fund. This lead to the creation of the California Central Coast State Veterans Cemetery at Fort Ord Endowment Fund. Now that the funding sought by the creation of California Central Coast State Veterans Cemetery at Fort Ord Endowment Fund the author of this bill would like for the California Department of Veterans Affairs, in voluntary cooperation with the Board of Supervisors of the County of Monterey, the City of Seaside, the Fort Ord Reuse Authority, and local agencies to design, develop and construct the California Central Coast Veterans Cemetery at Fort Ord. AB 3035 (Laird), Chapter 291, Statutes of 2006, established the Fort Ord Endowment Fund which provided for full funding of the maintenance and operation costs of the cemetery through private donations. Under AB 3035, the design and construction of the veterans cemetery could not move forward until a determination was made by specified parties that 100% of the Fort Ord Endowment Fund had been raised. AB 1757 provides that funds also cover the costs of project design and development of all documents necessary for construction of the cemetery. The one other state veterans' cemetery in California is located in Redding. Analysis Prepared by : Eric Worthen / V. A. / (916) 319-3550 FN: 0004753