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 the
begin delete departmentend delete 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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Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1451 of the Military and Veterans Code
2 is amended to read:
(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
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
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
(a) (1) Upon the determination of the Controller, after
35consultation with the Secretary of Veterans Affairs, that the
36Endowment Fund has adequate principal to
begin delete annuallyend delete yield
37sufficient investment earnings,
38from the date of the determination, to
begin delete cover the annualend delete
administrative and oversight costs begin delete over the and to
40next 10 yearsend delete
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.
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.