BILL NUMBER: AB 1580	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Yamada

                        JANUARY 30, 2014

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1580, as introduced, Yamada. Veterans' homes: Morale, Welfare,
and Recreation Fund.
   Existing law provides for the establishment of veterans' homes and
requires the administrator of a veterans' home to maintain a Morale,
Welfare, and Recreation Fund to be used, subject to the approval of
the Secretary of Veterans Affairs, to provide certain operations and
activities relating to the general welfare of the veterans.
   This bill would additionally require, for proposed expenditures of
Morale, Welfare, and Recreation Fund moneys of more than $5,000,
proposed contracts of more than $25,000 per year, or proposed
contracts of more than $100,000, the administrator to submit the
proposed expenditure or contract to the secretary for approval. This
bill would require legal counsel of the Department of Veterans
Affairs, or another similarly qualified reviewer, to review the
proposed expenditure or contract, and to issue an advisory opinion,
as described. This bill would also require the Department of Veterans
Affairs to make a presentation to the Morale, Welfare, and
Recreation Fund Advisory Committee of the home at a publicly noticed
meeting, and would require interested and affected parties to be
given an opportunity to provide input on the proposed expenditure or
contract. The bill would require the secretary to consider specified
advisory opinions, any input or information provided in the meeting,
and any other relevant information when determining whether a
contract will be approved.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 1047 of the Military and Veterans Code is
amended to read:
   1047.  (a)  (1)    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. 
   (2) For proposed expenditures of Morale, Welfare, and Recreation
Fund moneys of more than five thousand dollars ($5,000), proposed
contracts of more than twenty-five thousand dollars ($25,000) per
year, or proposed contracts of more than one hundred thousand dollars
($100,000), all of the following shall apply:  
   (A) The administrator shall submit the proposed expenditure or
contract to the secretary for approval. The secretary shall consider
the advisory opinion required in subparagraph (B), any input or
information provided in the meeting described in subparagraph (C),
any advisory opinion issued by a body representing the residents of
the home, and any other relevant information when determining whether
a contract will be approved.  
   (B) The proposed expenditure or contract shall be reviewed by
legal counsel of the department, or another similarly qualified
reviewer designated by the secretary. The reviewer shall issue an
advisory opinion to the secretary identifying those laws and
regulations with which the proposed expenditure or contract or
execution of the contract must comply, and any other relevant legal
issues that may arise with respect to compliance with those laws and
regulations.  
   (C) (i) The department shall make a presentation about the
proposed expenditure or contract and the advisory opinion described
in subparagraph (B) to the Morale, Welfare, and Recreation Fund
Advisory Committee of the home at a publicly noticed meeting. The
department shall provide written public notice of a meeting at least
30 days prior to the meeting.  
   (ii) Interested and affected parties, including, but not limited
to, residents of the home, family members of the residents, and
representatives from local government and the community shall be
given an opportunity to provide input on the proposed expenditure or
contract at the meeting. The Morale, Welfare, and Recreation Fund
Advisory Committee, the Veterans' Home Allied Council, or other body
representing residents of the home may also issue an advisory opinion
on the proposed expenditure or contract. 
   (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.
   (f) The administrator may enter into an agreement with an allied
council that authorizes that council to operate facilities and
activities authorized pursuant to this section. The agreement shall
be in the form and manner as specified by the administrator.