Amended in Assembly September 3, 2013

Senate Bill No. 232

Introduced by Senator Monning

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(Coauthor: Senator Roth)

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(Coauthor: Assembly Member Stone)

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February 11, 2013

An act to amend begin delete Section 1071 of the Labor Code, relating to employment. end delete begin insert Sections 1450, 1451, 1452, 1453, 1454, and 1456 of the Military and Veterans Code, and to amend the Budget Act of 2013 (Chapter 20 of the Statutes of 2013) by repealing Item 8955-011-0001 of Section 2.00 of that act, relating to veterans, and making an appropriation therefor. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 232, as amended, Monning. begin delete Private employment: public transit employees. end delete begin insert California Central Coast State Veterans Cemetery at Fort Ord Endowment Fund. end insert

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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 requires moneys in the Endowment Fund to be invested to generate ongoing earnings to cover the estimated annual oversight and maintenance costs associated with the veterans cemetery, as provided.

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This bill would instead require any moneys to be allocated to the department for the nonreimbursable costs of design and construction and the annual operations and maintenance costs of the veterans cemetery for the next 10 years. This bill would allow, but not require, moneys in the fund to be invested to generate ongoing earnings to offset the estimated annual operations and maintenance costs associated with the veterans cemetery.

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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 Controller’s determination 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, and to fund the estimated costs of developing and submitting the application, as specified.

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This bill would instead require the department to develop and submit an application upon the Controller’s determination that the Endowment Fund has adequate amounts, in addition to funding the estimated costs of developing and submitting the application, to fully fund the nonreimbursable costs of design and construction and the operations and maintenance costs for the next 10 years. This bill would require the Controller to consider the estimated revenues from specified fees expected to be deposited into the Endowment Fund in making this determination.

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This bill would allow any moneys, if awarded, received from the State Veterans Cemetery Grant Program to be used to reimburse the Endowment Fund for specified allowable costs as established by that program.

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Existing law authorizes the Director of Finance to transfer up to $1,500,000 as a loan from the General Fund to the Endowment Fund, and requires the loan to be repaid with interest, as provided.

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This bill would repeal that authorization, and instead make an appropriation of $1,000,000 from the General Fund to the Endowment Fund for the construction of the California Central Coast State Veterans Cemetery at Fort Ord.

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This bill would make technical, conforming changes to change the references to “administrative and oversight” to “operations and maintenance.”

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Existing law requires a local government agency to give a 10% preference to any bidder on a service contract to provide public transit services who agrees to retain employees of the prior contractor or subcontractor for a period of not less than 90 days, as specified.

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This bill would expand these provisions to require a state agency to also give a 10% preference to any bidder under these provisions.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee: yes. State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

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begin insert Section 1450 of the end insert begin insert Military and Veterans Code end insert
begin insert is amended to read: end insert

1450.  

For purposes of this chapter, the following definitions
apply:

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(a) “Administrative and oversight costs” means costs incurred
by the department for the maintenance of the veterans cemetery
including, but not limited to, personnel costs, the opening and
closing of graves, the interment of remains, committal service
coordination, grounds keeping, landscaping, general maintenance,
and janitorial services.

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(b)

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begin insert (a) end insert  “Department” means the Department of Veterans Affairs.

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(c)

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begin insert (b) end insert  “Endowment Fund” means the California Central Coast
State Veterans Cemetery at Fort Ord Endowment Fund.

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(c) “Operations and maintenance costs” means costs incurred
by the department for the operations and maintenance of the
veterans cemetery including, but not limited to, personnel costs,
the opening and closing of graves, the interment of remains,
committal service coordination, grounds keeping, landscaping,
general maintenance, and janitorial services.

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(d) “Operations Fund” means the California Central Coast State
Veterans Cemetery at Fort Ord Operations Fund.

(e) “Phases” means the usual phases of a capital outlay project,
and includes studies, preliminary plans, working drawings,
including documents necessary to put the construction phase out
to bid, and construction.

(f) “Veterans cemetery” means the California Central Coast
State Veterans Cemetery at Fort Ord.

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begin insert SEC. 2. end insert   

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begin insert Section 1451 of the end insert begin insert Military and Veterans Code end insert begin insert is
amended to read: end insert

1451.  

(a) The California Central Coast State Veterans
Cemetery at Fort Ord Endowment Fund is hereby created in the
State Treasury. Moneys in the Endowment Fund shall be allocated,
upon appropriation by the Legislature, to the department for the
begin delete annual administrative and oversight end delete begin insert nonreimbursable costs of
design and construction and the annual operations and
maintenance end insert costs of the veterans begin delete cemetery, pursuant to Sections
1453 and 1454, and to generate funding through interest for the
veterans cemetery end delete begin insert cemetery for the next 10 years end insert .

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

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

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(b) Moneys in the fund may be invested to generate earnings to
offset annual operations and maintenance costs associated with
the veterans cemetery.

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

(2) The department may 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 the agreement is reviewed and approved by
the Department of Finance.

(d) To the extent possible, donations made in-kind to the
Endowment Fund shall be monetized so as to offset the ongoing
begin delete administrative and oversight end delete begin insert operations and maintenance end insert costs
under Sections 1452 and 1453.

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

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

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

(h) If, through changes in state or federal law, additional
revenues are identified for the begin delete administration and oversight end delete
begin insert operations and maintenance end insert of the cemetery, including increases
in federal burial allowances, so that the amount of annual revenue
exceeds the annual begin delete administrative and oversight end delete begin insert operations and
maintenance end insert costs, the excess revenues shall be deposited in the
Endowment Fund.

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begin insert SEC. 3. end insert   

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begin insert Section 1452 of the end insert begin insert Military and Veterans Code end insert begin insert is
amended to read: end insert

1452.  

(a) On or before July 1, begin delete 2007, end delete begin insert 2014, end insert and annually
thereafter, the Controller, after consultation with the department,
shall report to the Assembly and Senate Committees on Veterans
Affairs, Monterey County, the City of Seaside, and the Fort Ord
Reuse Authority on the status of the Endowment Fund, the amount
of begin insert any end insert interest and investment earnings generated by the
Endowment Fund, and the estimated amount begin delete of additional principal end delete
needed begin delete to generate annual interest revenue end delete that will sufficiently
cover the estimated annual begin delete administrative and oversight end delete begin insert operations
and maintenance end insert costs.

(b) The estimated annual begin delete administrative and oversight end delete begin insert operations
and maintenance end insert costs shall be developed annually by the
department and provided to the Controller for purposes of the
report required by subdivision (a) by no later than June 15 of each
year.

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begin insert SEC. 4. end insert   

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begin insert Section 1453 of the end insert begin insert Military and Veterans Code end insert begin insert is
amended to read: end insert

1453.  

(a) (1) Upon the determination of the Controller, after
consultation with the Secretary of Veterans Affairs, that the
Endowment Fund has adequate begin delete principal to yield sufficient
investment earnings in each year for the next 10 years, from the
date of the determination, end delete begin insert amounts end insert to fully fund the begin delete respective
year’s administrative and oversight costs, net of all other estimated
revenue sources, end delete begin insert nonreimbursable costs of design and construction
and the operations and maintenance costs for the next 10 years, end insert
and to fund the estimated costs of developing and submitting the
State Veterans Cemetery Grant Program application, the
department shall 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. The
department shall consider cashflow needs when providing estimates
to the Controller in making this determination. begin insert The Controller
shall consider the estimated revenues from the fees described in
Section 1455 expected to be deposited into the Endowment Fund
in making this determination. end insert

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

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

(4) The department shall not proceed with advertisement for
construction bids until the Endowment Fund has adequate begin delete principal end delete
begin insert amounts end insert to cover annual begin delete administrative and oversight end delete begin insert operations
and maintenance end insert costs, in accordance with paragraph (1).

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

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

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

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

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

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

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

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

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begin insert SEC. 5. end insert   

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begin insert Section 1454 of the end insert begin insert Military and Veterans Code end insert begin insert is
amended to read: end insert

1454.  

(a) The Central Coast Veterans Cemetery Master
Development Fund is hereby renamed the California Central Coast
State Veterans Cemetery at Fort Ord Operations Fund. Moneys in
the Operations Fund may be transferred, upon appropriation by
the Legislature, from the Endowment Fund to the Operations Fund
for expenditure by the department, solely for the annual
begin delete administrative and oversight end delete begin insert operations and maintenance end insert costs of
the veterans cemetery.

(b) (1) The Controller shall reserve an amount, not to exceed
20 percent of the amount allocated pursuant to subdivision (a), in
the Operations Fund, which shall be used solely as a reserve for
unforeseen begin delete administrative and oversight end delete begin insert operations and
maintenance end insert costs.

(2) For purposes of this subdivision, “unforeseen begin delete administrative
and oversight end delete begin insert operations and maintenance end insert costs” means any costs
that could not have been reasonably anticipated by the department
when preparing its estimate of annual begin delete administrative and oversight end delete
begin insert operations and maintenance end insert costs and that are needed to carry out
the purposes of this chapter.

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begin insert SEC. 6. end insert   

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begin insert Section 1456 of the end insert begin insert Military and Veterans Code end insert begin insert is
amended to read: end insert

1456.  

(a) Proposals for the construction, placement, or donation
of monuments or memorials, excluding headstones, and other
amenities to the veterans cemetery shall be subject to review by
the California Central Coast Veterans Cemetery Advisory
Committee.

(b) All proposals for the construction, placement, or donation
of monuments, memorials, and amenities to the veterans cemetery
shall be subject to the approval of the Secretary of Veterans Affairs.

(c) The department shall adopt regulations for the policies and
procedures to be followed with respect to the design, placement,
and approval of monuments and memorials proposed to be placed
on veterans cemetery grounds.

(d) Endowment Fund balances exceeding that determined to be
sufficient to meet annual begin delete administrative and oversight end delete begin insert operations
and maintenance end insert costs, as determined pursuant to Section 1453,
may be expended, upon appropriation by the Legislature, for the
purpose of establishing monuments, memorials, and amenities.

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begin insert SEC. 7. end insert   

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begin insert Item 8955-011-0001 of Section 2.00 of the end insert begin insert Budget Act
of 2013 end insert begin insert is repealed. end insert

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8955-011-0001--For transfer by the Controller, upon the order of the Director of Finance, to the California Central Coast State Veterans Cemetery at Fort Ord Endowment Fund

(1,500,000)

Provisions:

1.

The Director of Finance may transfer up to $1,500,000 as a loan from the General Fund to the California Central Coast State Veterans Cemetery at Fort Ord Endowment Fund. The Director of Finance shall order the repayment of all or a portion of this loan if he or she determines that there is no longer a need for the moneys in the fund that received the loan. This loan shall be repaid with interest calculated at the rate earned by the Pooled Money Investment Account at the time of the transfer.

2.

Funds shall be repaid to the full extent of the grant award no later than 24 months after construction is completed.

3.

The Secretary of Veterans Affairs shall report annually, by January 10 of each year, commencing January 10, 2015, to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the chairpersons of the fiscal committees of each house of the Legislature on all expenditures made pursuant to Provision 1, including progress on repaying the General Fund pursuant to Provision 2.

 

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begin insert SEC. 8. end insert   

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begin insert (a) end insert begin insert   end insert begin insert The amount of one million dollars ($1,000,000)
is hereby appropriated from the General Fund to the California
Central Coast State Veterans Cemetery at Fort Ord Endowment
Fund for the construction of the California Central Coast State
Veterans Cemetery at Fort Ord. end insert

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(b) The Secretary of Veterans Affairs shall report annually, by
January 10 of each year, commencing January 10, 2015, to the
Director of Finance, the Chairperson of the Joint Legislative
Budget Committee, and the chairpersons of the fiscal committees
of each house of the Legislature on all expenditures made pursuant
to subdivision (a).

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SECTION 1.  

Section 1071 of the Labor Code is amended to
read:

1071.  

The following definitions apply throughout this chapter:

(a) “Awarding authority” means any state or local government
agency, including, but not limited to, any city, county, special
district, transit district, joint powers authority, or nonprofit
corporation that awards or otherwise enters into contracts for public
transit services performed within the state.

(b) “Bidder” means any person who submits a bid to an
awarding agency for a public transit service contract or subcontract.

(c) “Contractor” means any person who enters into a public
transit service contract with an awarding authority.

(d) “Employee” means any person who works for a contractor
or subcontractor under a contract. “Employee” does not include
an executive, administrative, or professional employee exempt
from the payment of overtime compensation within the meaning
of subdivision (a) of Section 515 or any person who is not an
“employee” as defined under Section 2(3) of the National Labor
Relations Act (29 U.S.C. Sec. 152(3)).

(e) “Person” means any individual, proprietorship, partnership,
joint venture, corporation, limited liability company, trust,
association, or other entity that may employ individuals or enter
into contracts.

(f) “Public transit services” means the provision of passenger
transportation services to the general public, including paratransit
service.

(g) “Service contract” means any contract the principal purpose
of which is to provide public transit services through the use of
service employees.

(h) “Subcontractor” means any person who is not an employee
who enters into a contract with a contractor to assist the contractor
in performing a service contract.

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