BILL ANALYSIS Ó
AB 1842
Page 1
Date of Hearing: April 24, 2012
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Paul J. Cook, Chair
AB 1842 (Monning) - As Amended: April 10, 2012
SUBJECT : California Central Coast State Veterans Cemetery:
Endowment Fund
SUMMARY : This bill would authorize the department to use any
moneys received from the State Veterans Cemetery (Cemetery)
Grant Program (Grant) that are transferred to the Endowment Fund
(Fund) for the reimbursement of those specified costs to
reimburse any cash advances made to the Fund used for those
costs to the extent allowed by grant requirements. Specifically,
this bill :
1. Authorizes the California Department of Veterans Affairs
(Department) to enter into financial agreements to receive
cash advances into the Fund;
2. Requires that any such financial agreements:
a. Must not encumber the state, and
b. Must be reviewed and performed in consultation
with the Department of Finance; and
3. Authorizes the Department to use money received from the
Grant that is transferred to the Fund for the reimbursement
of the costs of developing and submitting the Grant
application, to reimburse any cash advances made to the
Fund, to the extent allowed by Grant requirements, once it
is determined by the Department and certified by the
Controller's office that sufficient funds remain in the
Endowment Fund to cover ongoing maintenance and operating
costs.
EXISTING LAW
1. Military and Veterans Code section 1451 creates the
Fund.
2. Moneys in the Endowment Fund shall be allocated, upon
appropriation by the Legislature, to the department for the
annual administrative and oversight costs of the veterans
AB 1842
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cemetery, pursuant to Sections 1453 and 1454, and to
generate funding through interest for the veterans
cemetery.
3. Moneys in the fund shall first be invested with the goal
of achieving capital appreciation to create a balance
sufficient to generate ongoing earnings to cover the
estimated annual oversight and maintenance costs associated
with the veterans cemetery pursuant to Section 1453.
4. Upon the determination of the Controller that the
Endowment Fund balance has attained the goal established in
paragraph (1), moneys in the fund shall be invested to
generate earnings to fund annual oversight and maintenance
costs associated with the veterans cemetery.
5. The Endowment Fund may consist of donations from public
and private entities, partnerships between public and
private entities, fees, and transfers from the state
General Fund as may be specified by law.
6. Earnings generated by the Endowment Fund shall be
retained by the fund.
7. Moneys deposited in the Endowment Fund are exempt from
the requirements of Sections 11270 through 11277 of the
Government Code.
8. Moneys in the Endowment Fund shall be invested by the
Treasurer, after consultation with the department, in a
manner that best meets the goals of the fund.
9. Upon the determination of the Controller, after
consultation with the Secretary of Veterans Affairs, that
the Endowment Fund has adequate principal to annually yield
sufficient investment earnings, from the date of the
determination, to cover the annual administrative and
oversight costs over the next 10 years and to fund the
estimated costs of developing and submitting the State
Veterans Cemetery Grant Program application, the department
shall develop and submit a State Veterans Cemetery Grant
Program application to the United States Department of
Veterans Affairs for the establishment of a veterans
cemetery.
AB 1842
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10. The Controller, upon appropriation by the Legislature,
shall transfer moneys from the Endowment Fund to the
Operations Fund in an amount equal to the estimated costs
of developing and submitting the State Veterans Cemetery
Grant Program application to the United States Department
of Veterans Affairs.
11. The Secretary of Veterans Affairs shall submit the State
Veterans Cemetery Grant Program application to the United
States Department of Veterans Affairs within six months of
the Controller's determination pursuant to subdivision (a).
The Secretary of Veterans Affairs is authorized to act as
the official representative of the state in connection with
the State Veterans Cemetery Grant Program application,
including providing the United States Department of
Veterans Affairs throughout the application process with
all necessary assurances that additional information shall
be provided when required. The Secretary of Veterans
Affairs shall have final approval of all aspects of the
cemetery design and operation.
12. Upon the United States Department of Veterans Affairs'
certification of the grant award, the department is
authorized to proceed with construction and equipping of
the veterans cemetery.
13. If awarded, the moneys received from the State Veterans
Cemetery Grant Program shall be used to reimburse the
Endowment Fund for the costs of developing and submitting
the State Veterans Cemetery Grant Program application to
the United States Department of Veterans Affairs and other
eligible costs, and to fund 100 percent of costs allowed by
the grant requirements, as well as the state's share of any
other costs for the design, construction, and equipping of
the veterans cemetery.
FISCAL EFFECT : Unknown at this time. Bill is keyed fiscal.
COMMENTS : The former Fort Ord site is the subject of reuse and
redevelopment plans by the Fort Ord Reuse Authority. One
portion of the former site is planned as the Cemetery and has
been so dedicated for approximately 10 years, however, little
progress has been made. In order to get the Cemetery started,
private donations must fully fund the Cemetery design and
planning costs in the form of the Endowment.
AB 1842
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This bill provides an additional mechanism for the Fund to meet
the threshold necessary to apply for federal funding of the
Cemetery. The bill provides for review of any financial
agreements by Department of Finance in addition to review by the
Department. The bill requires that any agreements not encumber
the state.
REGISTERED SUPPORT / OPPOSITION :
Support
City of Seaside, California
Central Coast Veterans Cemetery Foundation
Fort Ord Reuse Authority
Monterey County Board of Supervisors
American Legion- Department of California
AMVETS- Department of California
California Association of County Veteran Service Officers
California State Commanders Veterans Council
Vietnam Veterans of America- California State Council
Steve Bloomer, Councilperson, City of Seaside
Opposition
None on File
Analysis Prepared by : John Spangler/ V. A. / (916) 319-3550