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        
           
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          |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 

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