Amended in Assembly June 11, 2013

Amended in Assembly May 16, 2013

Senate BillNo. 106


Introduced by Senator Monning

January 10, 2013


An act to amend Sections 1451 and 1453 of the Military and Veterans Code, relating to veterans,begin insert making an appropriation therefor,end insert and declaring the urgency thereof, to take effect immediately.

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 the Department of Veterans Affairs 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.

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.

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.

begin insert

This bill would, if the Secretary of Veterans Affairs or the department fails to submit a grant application to the State Veterans Cemetery Grant Program, if the United States Department of Veterans Affairs denies the grant application, or if the grant funding is not received for any other reason, require any amounts donated, received, or deposited to the Endowment Fund by specified entities to be refunded by the Controller to those entities, and would make an appropriation for the purpose of making those refunds. This bill would also require any amounts remaining in the Endowment Fund after making the refunds, if any, to be transferred to the General Fund.

end insert

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

Vote: 23. Appropriation: begin deleteno end deletebegin insertyesend insert. 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:

P3    1

1451.  

(a) The California Central Coast State Veterans
2Cemetery at Fort Ord Endowment Fund is hereby created in the
3State Treasury. Moneys in the Endowment Fund shall be allocated,
4upon appropriation by the Legislature, to the department for the
5annual administrative and oversight costs of the veterans cemetery,
6pursuant to Sections 1453 and 1454, and to generate funding
7through interest for the veterans cemetery.

8(b) (1) Moneys in the fund shall first be invested with the goal
9of achieving capital appreciation to create a balance sufficient to
10generate ongoing earnings to cover the estimated annual oversight
11and maintenance costs associated with the veterans cemetery
12pursuant to Section 1453.

13(2) Upon the determination of the Controller that the Endowment
14Fund balance has attained the goal established in paragraph (1),
15moneys in the fund shall be invested to generate earnings to fund
16annual oversight and maintenance costs associated with the
17veterans cemetery.

18(c) (1) The Endowment Fund may consist of donations from
19public and private entities, partnerships between public and private
20entities, fees, cash advances, and transfers from the state General
21Fund as may be specified by law.

22(2) The department may enter into any financial agreement to
23receive cash advances in the Endowment Fund, provided that the
24agreement does not require the state to repay or make payments
25on cash advances and the agreement is reviewed and approved by
26the Department of Finance.

27(d) To the extent possible, donations made in-kind to the
28Endowment Fund shall be monetized so as to offset the ongoing
29administrative and oversight costs under Sections 1452 and 1453.

30(e) Earnings generated by the Endowment Fund shall be retained
31by the fund.

32(f) Moneys deposited in the Endowment Fund are exempt from
33the requirements of Sections 11270 through 11277 of the
34Government Code.

35(g) Moneys in the Endowment Fund shall be invested by the
36Treasurer, after consultation with the department, in a manner that
37best meets the goals of the fund.

38(h) If, through changes in state or federal law, additional
39revenues are identified for the administration and oversight of the
40cemetery, including increases in federal burial allowances, so that
P4    1the amount of annual revenue exceeds the annual administrative
2and oversight costs, the excess revenues shall be deposited in the
3Endowment Fund.

4

SEC. 2.  

Section 1453 of the Military and Veterans Code is
5amended to read:

6

1453.  

(a) (1) Upon the determination of the Controller, after
7consultation with the Secretary of Veterans Affairs, that the
8Endowment Fund has adequate principal to yield sufficient
9investment earnings in each year for the next 10 years, from the
10date of the determination, to fully fund the respective year’s
11administrative and oversight costs, net of all other estimated
12revenue sources, and to fund the estimated costs of developing
13and submitting the State Veterans Cemetery Grant Program
14application, the department shall develop and submit a State
15Veterans Cemetery Grant Program application to the United States
16Department of Veterans Affairs for the establishment of a veterans
17cemetery. The department shall consider cashflow needs when
18providing estimates to the Controller in making this determination.

19(2) The Controller, upon appropriation by the Legislature, shall
20transfer moneys from the Endowment Fund to the Operations Fund
21in an amount equal to the estimated costs of developing and
22submitting the State Veterans Cemetery Grant Program application
23to the United States Department of Veterans Affairs.

24(3) Notwithstanding paragraph (1), the Controller, upon
25appropriation by the Legislature, shall transfer funds from the
26Endowment Fund to the Operations Fund in an amount at least
27equal to the estimated costs to complete preliminary plans and
28working drawings. Transfers shall be made only when sufficient
29funds, as determined by the Director of Finance, exist to fully
30accomplish each of these project phases.

31(4) The department shall not proceed with advertisement for
32construction bids until the Endowment Fund has adequate principal
33to cover annual administrative and oversight costs, in accordance
34with paragraph (1).

35(b) (1) The Secretary of Veterans Affairs shall submit the State
36Veterans Cemetery Grant Program application to the United States
37Department of Veterans Affairs within six months of the
38Controller’s determination pursuant to subdivision (a). The
39Secretary of Veterans Affairs is authorized to act as the official
40representative of the state in connection with the State Veterans
P5    1Cemetery Grant Program application, including providing the
2United States Department of Veterans Affairs throughout the
3application process with all necessary assurances that additional
4information shall be provided when required. The Secretary of
5Veterans Affairs shall have final approval of all aspects of the
6cemetery design and operation.

7(2) Upon transfer of funds pursuant to paragraphs (2) and (3)
8of subdivision (a), the department is authorized to proceed with
9all activities necessary to support the submission of the State
10Veterans Cemetery Grant Program application.

11(3) Upon the United States Department of Veterans Affairs’
12certification of the grant award, the department is authorized to
13proceed with construction and equipping of the veterans cemetery.

14(c) (1) If awarded, the moneys received from the State Veterans
15Cemetery Grant Program shall be used to reimburse the
16Endowment Fund for the costs of developing and submitting the
17State Veterans Cemetery Grant Program application to the United
18States Department of Veterans Affairs and other eligible costs,
19 and to fund 100 percent of costs allowed by the grant requirements,
20as well as the state’s share of any other costs for the design,
21construction, and equipping of the veterans cemetery.

22(2) Any moneys received from the State Veterans Cemetery
23Grant Program that are transferred to the Endowment Fund for the
24reimbursement of the costs specified in paragraph (1) may be used
25by the department to reimburse any cash advances made to the
26Endowment Fund used for those costs to the extent allowed by
27grant requirements, once it is determined by the California
28Department of Veterans Affairs and certified by the Controller’s
29office that sufficient funds remain in the Endowment Fund to cover
30ongoing maintenance and operating costs.

begin insert

31(3) (A) If the Secretary of Veterans Affairs or the department
32fails to submit a grant application as described in paragraph (1)
33of subdivision (b) to the United States Department of Veterans
34Affairs State Veterans Cemetery Grant Program, the United States
35Department of Veterans Affairs denies the grant application, or
36if the grant funding pursuant to the United States Department of
37Veterans Affairs State Veterans Cemetery Grant Program is not
38received for any other reason, any amounts donated to, received
39by, or deposited to the Endowment Fund by the entities described
40in subdivision (c) of Section 1451 shall be refunded by the
P6    1Controller to those entities, and that amount is hereby appropriated
2from that fund the purpose of making those refunds.

end insert
begin insert

3(B) Any amounts remaining in the Endowment Fund after
4making the refunds described in subparagraph (A), if any, shall
5be transferred to the General Fund.

end insert
begin insert

6(C) The Controller shall make the refunds to the entities,
7including the Central Coast Veterans Cemetery Foundation,
8pursuant to subparagraph (A) within six months from the date of
9the announcement or receipt of the grant funding denial
10notification or any other equivalent notification that the project
11will be unable to secure the grant funds and proceed to
12construction. Any transfer to the General Fund pursuant to
13subparagraph (B) shall also be made within that six month period.

end insert
14

SEC. 3.  

This act is an urgency statute necessary for the
15immediate preservation of the public peace, health, or safety within
16the meaning of Article IV of the Constitution and shall go into
17immediate effect. The facts constituting the necessity are:

18In order to meet the deadline of July 1, 2013, established by the
19United States Department of Veterans Affairs as a result of federal
20sequestration, which requires the California Department of
21Veterans Affairs to submit its application for millions of dollars
22in federal funds to cover the cost of building the California Central
23Coast State Veterans Cemetery at Fort Ord, it is necessary that this
24act take effect immediately.


CORRECTIONS:

Text--Page 6.




O

Corrected 6-13-13—See last page.     97