BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1453
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          Date of Hearing:   April 29, 2014

                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
                              Sharon Quirk-Silva, Chair
                  AB 1453 (Quirk-Silva) - As Amended: April 22, 2014
           
          SUBJECT  :   Southern California Veterans Cemetery.

           SUMMARY :   Requires the California Department of Veterans  
          Affairs (department), in voluntary cooperation with local  
          government entities in Orange County, to design, develop,  
          construct, and equip a state-owned and state-operated Southern  
          California Veterans Cemetery. The bill would also make all  
          honorably discharged veterans eligible for interment in the  
          cemetery and their spouses and children to the extent provided  
          by federal law and regulation. Additionally, the bill would  
          require the department to establish a fee to be charged for  
          interment of veteran spouses and children. Specifically, this  
          bill: 

          1)Creates the Southern California Veterans Cemetery Master  
            Development Fund, a continuously appropriated fund, and would  
            require all moneys received for the design, development,  
            construction, and equipment of the cemetery to be deposited in  
            this fund. 

          2)Creates the Southern California Veterans Cemetery Perpetual  
            Maintenance Fund and would direct all moneys received for the  
            maintenance of the cemetery, including those moneys received  
            for the interment of a spouse or child, to be deposited in  
            this fund.

          3)Makes proposals for the construction, placement, or donation  
            of monuments and memorials to the cemetery subject to review  
            by a specified advisory committee and subject to final  
            approval by the Secretary.

          4)Authorizes the cemetery administrator to accept donations of  
            personal property to be used for the maintenance,  
            beautification, or repair of the cemetery. Requires cash  
            donations to be deposited into the Southern California  
            Veterans Cemetery Donations Fund; a continuously appropriated  
            fund created by this bill, and would require the cash  
            donations to be expended for the maintenance, beautification,  
            and repair of the cemetery, as specified. By creating a  








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            continuously appropriated fund, the bill would make an  
            appropriation.

          5)Declares the intent of the Legislature to appropriate funds in  
            the annual Budget Act to support the department in carrying  
            out the provisions of this bill. Specifies that if no  
            appropriation is made for these purposes, the department would  
            not be required to comply with the provisions of this bill. 

          6)Requires the department to apply to the Veterans Cemetery  
            Grants Program of the federal Department of Veterans Affairs  
            for a grant of not more than an unspecified amount, which  
            amount represents 100% of the estimated cost for designing,  
            developing, constructing, and equipping the cemetery. 

          7)Declares the intent of the Legislature to prohibit the  
            expenditure of money appropriated to the department until the  
            department has received written approval of the grant request  
            and a commitment from the federal Veterans Cemetery Grants  
            Program that the funds appropriated under the grant are  
            available for expenditure by the state, except as specified.

           EXISTING LAW  : 

          1)Requires the department, in voluntary cooperation with the  
            Shasta County Board of Supervisors and the boards of  
            supervisors of specified northern California counties, to  
            design, develop, and construct a state-owned and  
            state-operated Northern California Veterans Cemetery. 

          2)Requires the department, in voluntary cooperation with the  
            Board of Supervisors of the County of Monterey, the City of  
            Seaside, the Fort Ord Reuse Authority, and surrounding  
            counties, cities, and local agencies, to design, develop, and  
            construct the state-owned and state-operated Central Coast  
            Veterans Cemetery, which shall be located on the site of the  
            former Fort Ord.

          3)The Secretary of Veterans Affairs of the federal Department of  
            Veterans Affairs is authorized to make a grant to any state  
            for the purpose of establishing, expanding, or improving a  
            veterans' cemetery owned by the state and operating and  
            maintaining a veterans' cemetery.

           FISCAL EFFECT  :   Unknown at this time. 








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           COMMENTS  :   

          Traditionally, veterans' cemeteries have been federal  
          responsibilities, but as the last century came to a close the  
          federal government enacted a cost saving measure by offering to  
          build cemeteries but let states pay the maintenance costs in  
          perpetuity as was done with the now completed Northern  
          California State Veterans Cemetery (NCVC), California's first,  
          and the Central Coast State Veterans Cemetery, which will be the  
          second when complete.

          Under the federal Veterans Affairs State Cemetery Grants  
          Program, the federal government will  reimburse up to 100% of  
          the cost of establishing, expanding, or improving state  
          veterans' cemeteries, including the acquisition of initial  
          operating equipment, if the state agrees to cover the  
          administrative and oversight costs.  These administrative and  
          oversight costs are offset eventually through federal veterans  
          burial benefits.  The USDVA will not pay any off site costs,  
          land purchases, demolition costs or State employee costs such as  
          DGS may charge. 

          The administrative, oversight and operational costs are offset  
          by a federal plot allowance paid to the state for the burial of  
          veterans by the USDVA and the dependent fees charged by the  
          state. The percentage of those costs depends on the type of  
          cemetery operation.  The federal Plot Allowance is currently  
          $734 and NCVC dependent fees are currently $500.

          According to the department:

               The burial rate must be determined and is the primary  
               factor that will determine the size, type and cost of  
               construction, as well as the operational costs of the  
               Veterans Cemetery. We will consider the veterans  
               population, veteran's death rate, and distance from cities  
               to the proposed location of the cemetery and of existing  
               active veteran's cemeteries. Riverside National Cemetery is  
               the closest National Cemetery to Orange, Los Angeles and  
               Ventura Counties, which is the area that the proposed  
               Veterans Cemetery would serve. However, the locations of  
               Bakersfield National Cemetery to the north and Miramar  
               National Cemetery to the south were considered.              
                    








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               The National Cemetery Administration uses a 75 mile radius  
               to determine if a veteran is being served by an existing  
               Veterans Cemetery. The flaw in their logic in determining  
               if a veteran is being served within a 75 mile radius is  
               that they do not consider natural barriers, location of  
               roadways, traffic and public transportation, which are  
               proven barriers in the actual use by veterans of veterans  
               cemeteries. 

               Much of the area that our proposed veteran's cemetery would  
               serve is inside the 75 mile radius of Riverside National  
               Cemetery, but this fact will not prevent the state from  
               obtaining a federal grant to construct a State Veterans  
               cemetery. However, it must be considered when determining  
               our facilities burial rate. For this reason we have not  
               considered the veterans population in Riverside or San  
               Bernardino Counties that may be closer to our proposed  
               location. We are considering the entire veteran population  
               of Orange, Los Angeles and Ventura counties as those  
               veterans would reside closer to our proposed location than  
               to the Riverside National Cemetery. 

               The National Cemetery Administration inters 13.5% of the  
               eligible veterans in their catchment areas (75 mile radius)  
               nationwide. The Northern California Veterans Cemetery  
               (NCVC) inters 27% of the eligible veterans within a 75 mile  
               radius of the cemetery. 

               When determining the burial rate for the California Central  
               Coast Veterans Cemetery (CCCVC) CDVA and the USDVA agreed  
               on a 25% interment rate based on our experience at NCVC.  
               Understanding that there are so many unmeasurable factors  
               in determining the percentage this is not a science, but an  
               estimation of the actual number of veterans that will be  
               interred in our proposed Veterans Cemetery. 

               Casket and Cremated Interments at the Proposed Veterans  
               Cemetery 
               
               USDVA Burial Rate Percentage - 13.5% = 2,124 veteran  
               burials per year, including dependent burials = 2,974 

               NCVC Burial Rate Percentage - 27% = 4,247 veteran burials  
               per year, including dependent burials = 5,746








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               CCCVC proposed Rate Percentage - 25% = 3,933 veterans  
               burials per year, including dependent burials = 5,506

               Dependent burials are not considered in the above figures  
               and USDVA and CDVA agree that it averages an additional 40%  
               to the total of veterans interred in veteran's cemeteries.

          The two State Veterans Cemeteries are distant from Orange  
          County; the Northern California State Veterans Cemetery is  
          located in near Redding in Igo, California, and the Central  
          Coast State Veterans Cemetery will be located in Monterey,  
          California.

          Although the National Cemetery in Riverside is a beautiful  
          resting place for veterans, due to its distance from Orange  
          County, regional geography, limited driving routes, and the  
          population density of the region, the needs of Orange County  
          veterans, veterans from other southern California coastal areas,  
          and veterans' families are not met by the National Cemetery in  
          Riverside.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American GI Forum
          American Legion, Department of California
          American Legion, Post 131 of Santa Ana
          American Legion, Post 277 of Placentia
          American Legion District 29
          AMVETS, Department of California
          California Association of County Veterans Service Officer
          California Republican Assembly
          California Senior Legislature 
          California State Commanders Veterans Council
          City of Brea
          City of Garden Grove
          City of Huntington Beach
          City Irvine
          City of Laguna Beach
          City of Los Alamitos
          City of Mission Viejo
          City of Santa Ana
          City of Stanton








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          Coast Community College District
          Disabled American Veterans, Department of California
          Fullerton College
          Kazuo Masuda Memorial VFW Post 3670
          League of United Latin American Citizens
          Michael A. Houlemard, Jr- Executive Officer of the Fort Ord  
          Reuse Authority 
          Orange County Cemetery District
          Orange County Employees Association
          Public Law Center
          Veterans Employment Committee of Orange County
          Veterans of Foreign Wars, Department of California
          Vietnam Veterans of America, California State Council
          125 Individuals 
          City of Buena Park

           Opposition 
           
          None
           
          Analysis Prepared by  :    John Spangler / V. A. / (916) 319-3550