Amended in Assembly May 16, 2013

Senate BillNo. 106


Introduced by Senator Monning

January 10, 2013


An act to amendbegin delete Sectionend deletebegin insert Sectionsend insert 1451begin insert and 1453end insert of the Military and Veterans Code, relating to veteransbegin insert, and declaring the urgency thereof, to take effect immediatelyend insert.

LEGISLATIVE COUNSEL’S DIGEST

SB 106, as amended, Monning. California Central Coast State Veterans Cemetery at Fort Ord Endowment Fund.

Existing law creates the California Central Coast State Veterans Cemetery at Fort Ord Endowment Fund (Endowment Fund) in the State Treasury, and requires moneys in the Endowment Fund to be allocated, upon appropriation by the Legislature, to thebegin delete departmentend deletebegin insert Department of Veterans Affairsend insert for the annual administrative and oversight costs of the veterans cemetery, as specified, and to generate funding through interest for the veterans cemetery. Existing law provides that the Endowment Fund may consist of, among other things, donations from public and private entities and fees. Existing law authorizes the department to enter into any financial agreement to receive cash advances in the Endowment Fund, provided that no obligations of repayment are made to the state and the agreement is reviewed and performed in consultation with the Department of Finance.

This bill would instead authorize the department to enter into any financial agreement to receive cash advances in the Endowment Fund, provided that the agreement does not require the state to repay or make payments on cash advances and that the agreement is reviewed and approved by the Department of Finance.

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Existing law requires the department to 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 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 and to fund the estimated costs of developing and submitting the application.

end insert
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This bill would instead require the department to 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 upon the determination of the Controller, after consultation with the Secretary of Veterans Affairs, that the Endowment Fund has adequate principal to yield sufficient investment earnings in each year for the next 10 years from the date of the determination to fully fund the respective year’s administrative and oversight costs, net of all other estimated revenue sources, and to fund the estimated costs of developing and submitting the application.

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This bill would declare that it is to take effect immediately as an urgency statute.

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Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1451 of the Military and Veterans Code
2 is amended to read:

3

1451.  

(a) The California Central Coast State Veterans
4Cemetery at Fort Ord Endowment Fund is hereby created in the
5State Treasury. Moneys in the Endowment Fund shall be allocated,
6upon appropriation by the Legislature, to the department for the
7annual administrative and oversight costs of the veterans cemetery,
8pursuant to Sections 1453 and 1454, and to generate funding
9through interest for the veterans cemetery.

10(b) (1) Moneys in the fund shall first be invested with the goal
11of achieving capital appreciation to create a balance sufficient to
12generate ongoing earnings to cover the estimated annual oversight
13and maintenance costs associated with the veterans cemetery
14pursuant to Section 1453.

P3    1(2) Upon the determination of the Controller that the Endowment
2Fund balance has attained the goal established in paragraph (1),
3moneys in the fund shall be invested to generate earnings to fund
4annual oversight and maintenance costs associated with the
5veterans cemetery.

6(c) (1) The Endowment Fund may consist of donations from
7public and private entities, partnerships between public and private
8entities, fees, cash advances, and transfers from the state General
9Fund as may be specified by law.

10(2) The department may enter into any financial agreement to
11receive cash advances in the Endowment Fund, provided that the
12agreement does not require the state to repay or make payments
13on cash advances and the agreement is reviewed and approved by
14the Department of Finance.

15(d) To the extent possible, donations made in-kind to the
16Endowment Fund shall be monetized so as to offset the ongoing
17administrative and oversight costs under Sections 1452 and 1453.

18(e) Earnings generated by the Endowment Fund shall be retained
19by the fund.

20(f) Moneys deposited in the Endowment Fund are exempt from
21the requirements of Sections 11270 through 11277 of the
22Government Code.

23(g) Moneys in the Endowment Fund shall be invested by the
24Treasurer, after consultation with the department, in a manner that
25best meets the goals of the fund.

26(h) If, through changes in state or federal law, additional
27 revenues are identified for the administration and oversight of the
28cemetery, including increases in federal burial allowances, so that
29the amount of annual revenue exceeds the annual administrative
30and oversight costs, the excess revenues shall be deposited in the
31Endowment Fund.

32begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1453 of the end insertbegin insertMilitary and Veterans Codeend insertbegin insert is
33amended to read:end insert

34

1453.  

(a) (1) Upon the determination of the Controller, after
35consultation with the Secretary of Veterans Affairs, that the
36Endowment Fund has adequate principal tobegin delete annuallyend delete yield
37sufficient investment earningsbegin insert in each year for the next 10 yearsend insert,
38from the date of the determination, tobegin delete cover the annualend deletebegin insert fully fund
39the respective year’send insert
administrative and oversight costsbegin delete over the
40next 10 yearsend delete
begin insert, net of all other estimated revenue sources,end insert and to
P4    1fund the estimated costs of developing and submitting the State
2Veterans Cemetery Grant Program application, the department
3shall develop and submit a State Veterans Cemetery Grant Program
4application to the United States Department of Veterans Affairs
5for the establishment of a veterans cemetery.begin insert The department shall
6consider cashflow needs when providing estimates to the Controller
7in making this determination.end insert

8(2) The Controller, upon appropriation by the Legislature, shall
9transfer moneys from the Endowment Fund to the Operations Fund
10in an amount equal to the estimated costs of developing and
11submitting the State Veterans Cemetery Grant Program application
12to the United States Department of Veterans Affairs.

13(3) Notwithstanding paragraph (1), the Controller, upon
14appropriation by the Legislature, shall transfer funds from the
15Endowment Fund to the Operations Fund in an amount at least
16equal to the estimated costs to complete preliminary plans and
17working drawings. Transfers shall be made only when sufficient
18funds, as determined by the Director of Finance, exist to fully
19accomplish each of these project phases.

20(4) The department shall not proceed with advertisement for
21construction bids until the Endowment Fund has adequate principal
22to cover annual administrative and oversight costs, in accordance
23with paragraph (1).

24(b) (1) The Secretary of Veterans Affairs shall submit the State
25Veterans Cemetery Grant Program application to the United States
26Department of Veterans Affairs within six months of the
27Controller’s determination pursuant to subdivision (a). The
28Secretary of Veterans Affairs is authorized to act as the official
29representative of the state in connection with the State Veterans
30Cemetery Grant Program application, including providing the
31United States Department of Veterans Affairs throughout the
32application process with all necessary assurances that additional
33information shall be provided when required. The Secretary of
34Veterans Affairs shall have final approval of all aspects of the
35cemetery design and operation.

36(2) Upon transfer of funds pursuant to paragraphs (2) and (3)
37of subdivision (a), the department is authorized to proceed with
38all activities necessary to support the submission of the State
39Veterans Cemetery Grant Program application.

P5    1(3) Upon the United States Department of Veterans Affairs’
2certification of the grant award, the department is authorized to
3proceed with construction and equipping of the veterans cemetery.

4(c) (1) If awarded, the moneys received from the State Veterans
5Cemetery Grant Program shall be used to reimburse the
6Endowment Fund for the costs of developing and submitting the
7State Veterans Cemetery Grant Program application to the United
8States Department of Veterans Affairs and other eligible costs,
9and to fund 100 percent of costs allowed by the grant requirements,
10as well as the state’s share of any other costs for the design,
11construction, and equipping of the veterans cemetery.

12(2) Any moneys received from the State Veterans Cemetery
13Grant Program that are transferred to the Endowment Fund for the
14reimbursement of the costs specified in paragraph (1) may be used
15by the department to reimburse any cash advances made to the
16Endowment Fund used for those costs to the extent allowed by
17grant requirements, once it is determined by the California
18Department of Veterans Affairs and certified by the Controller’s
19office that sufficient funds remain in the Endowment Fund to cover
20ongoing maintenance and operating costs.

21begin insert

begin insertSEC. 3.end insert  

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This act is an urgency statute necessary for the
22immediate preservation of the public peace, health, or safety within
23the meaning of Article IV of the Constitution and shall go into
24immediate effect. The facts constituting the necessity are:

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25In order to meet the deadline of July 1, 2013, established by the
26United States Department of Veterans Affairs as a result of federal
27sequestration, which requires the California Department of
28Veterans Affairs to submit its application for millions of dollars
29in federal funds to cover the cost of building the California Central
30Coast State Veterans Cemetery at Fort Ord, it is necessary that
31this act take effect immediately.

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