BILL NUMBER: AB 1580 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 2, 2014
AMENDED IN ASSEMBLY MARCH 19, 2014
INTRODUCED BY Assembly Member Yamada
JANUARY 30, 2014
An act to amend Section 1047 Sections
1047, 1048, and 1049 of the Military and Veterans Code,
relating to veterans , and making an appropriation therefor
.
LEGISLATIVE COUNSEL'S DIGEST
AB 1580, as amended, 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.
These funds include proceeds from the California Veterans Homes
Fund, operations of the Veterans' Home Exchange, specified revenue
derived from the issuance of prisoner-of-war special license plates,
funds derived from golf course green fees and range ball fees,
donations, interest earned on invested funds, funds derived from the
estates of deceased members, and any other moneys or property
described under existing law, including, but not limited to, moneys
and properties received by the home from estate assets located
outside the home.
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 provide written notifications containing specified
information prior to the execution of a proposed expenditure or
contract, and upon the execution of the expenditure or contract, to
the Veterans' Home Allied Council or to another body representing the
residents of the affected home or homes. This bill would provide the
Veterans' Home Allied Council or other body representing residents
of the affected home or homes the opportunity to respond to the
notification provided prior to the execution of a proposed
expenditure or contract. The bill would require the secretary to
consider the advisory opinion and any other relevant information when
determining whether an expenditure or contract will be approved.
create the Veterans' Morale, Welfare, and Recreation
Fund in the State Treasury, to replace the existing individual funds.
The bill would require all moneys in each existing veterans' home
fund to be deposited into the Veterans' Morale, Welfare, and
Recreation Fund. The bill would continuously appropriate these moneys
to the Department of Veterans Affairs to provide for the general
welfare of the veterans living in state veterans ' homes. Moneys in
the fund would be exempt from specified provisions relating to the
determination of administrative costs owed by each state agency to
the state. The bill would require the department to develop
standardized expenditure procedures for the fund, as specified, and
to provide residents with a quarterly report on the
expenditures made from the fund on behalf of each home. The bill also
would make technical and conforming changes.
Vote: majority. Appropriation: no yes
. 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
Veterans' 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 is
hereby created in the State Treasury. All moneys in each Morale,
Welfare, and Recreation Fund maintained by the eight California state
veterans' homes shall be deposited into the Veterans'
Morale, Welfare, and Recreation Fund and the individual home funds
shall be abolished. All references to the "Morale, Welfare, and
Recreation Fund" shall be deemed to refer to the fund created by this
subdivision.
(2) Notwithstanding Section 13340 of the Government Code, all
moneys deposited into the Veterans' Morale, Welfare, and Recreation
Fund are continuously appropriated to the department to provide for
the general welfare of the veterans living in the veterans' home of
California.
(3) Moneys deposited in the fund are exempt from the requirements
of Article 2 (commencing with Section 11270) of Chapter 3 of Part 1
of Division 3 of Title 2 of the Government Code.
(4) (A) Moneys in the Veterans' Morale, Welfare, and Recreation
Fund may be distributed to the homes at the discretion, and subject
to the approval, of the secretary, to provide for the general welfare
of the veterans living in state veterans' homes.
(B) For purposes of this section,
"general welfare" includes, but is not limited to, providing
for operations of the Veterans' Home Exchange,
a canteen, 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)
(5) For proposed expenditures of Veterans'
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: Recreation Fund moneys,
the department shall maintain guidelines whereby the administrator
for each home, in consultation with the Veterans' Home Allied Council
or another body representing the residents of the home, shall submit
proposed expenditures to the secretary for approval. Moneys from the
fund shall be allocated proportionally to each home, based upon the
census of the homes on July 1 of each year. Allocations from the fund
may be augmented by the secretary to meet specified identified
needs.
(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) and any other
relevant information when determining whether an expenditure or
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) Prior to the execution of a proposed expenditure or contract,
the department shall provide written notification in the form of a
draft expenditure proposal to the Veterans' Home Allied Council or to
another body representing the residents of the affected home or
homes. The draft expenditure proposal shall include, but is not
limited to, a description of the intent of the project that is the
subject of the proposed expenditure or contract, estimated costs, and
an approximate timeline of execution. The Veterans' Home Allied
Council or other body representing residents of the affected home or
homes shall have the opportunity to respond to the draft expenditure
proposal and the department shall consider any responses provided.
(D) Upon the execution of the expenditure or contract, the
department shall provide written notification to the Veterans' Home
Allied Council or another body representing residents of the affected
home or homes. The notification shall identify the purpose of the
project, costs, and who is the recipient or recipients of the moneys
distributed from the Morale, Welfare, and Recreation Fund.
(6) The department shall develop standardized expenditure
procedures for the Veterans' Morale, Welfare, and Recreation Fund in
all homes, which shall be in accordance with standard state contract
and procurement practices and rules. The department shall provide the
residents, through the administrator of each home, with a quarterly
report on the expenditures made from the fund on behalf of each home.
(b) Money in the Veterans' 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 , except
for capital improvements that directly enhance the quality of life of
the veterans living in 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 Veterans' Morale, Welfare, and
Recreation Fund for those described purposes.
(d) The administrator department
shall prepare an itemized report that is organized by category and
accounts for all expenditures made from the Veterans'
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, department
shall maintain a reserve in the Veterans' Morale, Welfare,
and Recreation Fund 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.
SEC. 2. Section 1048 of the Military and
Veterans Code is amended to read:
1048. (a) The Morale, Welfare, and Recreation Fund shall include
proceeds from the California Veterans Homes Fund, operations of
the Veterans' Home Exchange, a canteen,
revenue derived from the issuance of prisoner-of-war special license
plates pursuant to Section 5101.5 of the Vehicle Code, all funds
derived from golf course green fees and range ball fees, all
donations to the fund, interest earned on invested funds, funds
derived from the estates of deceased members, and any other moneys or
property described in this chapter, including, but not limited to,
moneys and properties received by the home from estate assets located
outside the home, regardless of amount.
(b) The administrator shall prepare an itemized report that is
organized by category and accounts for all funds deposited into the
Morale, Welfare, and Recreation Fund and transmitted to the
Controller under Section 1047 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.
SEC. 3. Section 1049 of the Military
and Veterans Code is amended to read:
1049. Moneys in the Morale, Welfare, and Recreation Fund
maintained under subdivision (a) of Section 1047 may be used to
establish or operate a Veterans' Home Exchange
canteen that may conduct any lawful endeavor which, in the
judgment of the administrator, will benefit the veterans, except as
prohibited under subdivision (b) of Section 1047. The administrator
may establish the Veterans' Home Exchange
canteen to operate at a profit.