BILL NUMBER: SB 232 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY SEPTEMBER 3, 2013
INTRODUCED BY Senator Monning
( Coauthor: Senator Roth
)
( Coauthor: Assembly Member
Stone )
FEBRUARY 11, 2013
An act to amend Section 1071 of the Labor Code, relating
to employment. 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.
LEGISLATIVE COUNSEL'S DIGEST
SB 232, as amended, Monning. Private employment: public
transit employees. 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 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.
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.
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.
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.
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.
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.
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.
This bill would make technical, conforming changes to change the
references to "administrative and oversight" to "operations and
maintenance."
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.
This bill would expand these provisions to require a state agency
to also give a 10% preference to any bidder under these provisions.
Vote: majority 2/3 . 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 1450 of the Military
and Veterans Code is amended to read:
1450. For purposes of this chapter, the following definitions
apply:
(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.
(b)
(a) "Department" means the Department of Veterans
Affairs.
(c)
(b) "Endowment Fund" means the California Central Coast
State Veterans Cemetery at Fort Ord Endowment Fund.
(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.
(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.
SEC. 2. Section 1451 of the Military
and Veterans Code is amended to read:
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 annual
administrative and oversight nonreimbursable costs of
design and construction and the annual operations and maintenance
costs of the veterans cemetery, pursuant to Sections
1453 and 1454, and to generate funding through interest for the
veterans cemetery cemetery for the next 10 years
.
(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.
(b) Moneys in the fund may be invested to generate earnings to
offset annual operations and maintenance costs associated with the
veterans cemetery.
(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
administrative and oversight operations and
maintenance 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 administration and oversight
operations and maintenance of the cemetery,
including increases in federal burial allowances, so that the amount
of annual revenue exceeds the annual administrative and
oversight operations and maintenance costs, the
excess revenues shall be deposited in the Endowment Fund.
SEC. 3. Section 1452 of the Military
and Veterans Code is amended to read:
1452. (a) On or before July 1, 2007,
2014, 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 any interest and investment
earnings generated by the Endowment Fund, and the estimated amount
of additional principal needed to
generate annual interest revenue that will sufficiently
cover the estimated annual administrative and oversight
operations and maintenance costs.
(b) The estimated annual administrative and oversight
operations and maintenance 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.
SEC. 4. Section 1453 of the Military and
Veterans Code is amended to read:
1453. (a) (1) 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, amounts to fully fund the
respective year's administrative and oversight costs, net
of all other estimated revenue sources,
nonreimbursable costs of design and construction and the
operations and maintenance costs for the next 10 years, 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. 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.
(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
principal amounts to cover annual
administrative and oversight operations and
maintenance 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 allowable costs as established by the United
States Department of Veterans Affairs State Veterans Cemetery Grant
Program 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
operations and maintenance and operating
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.
SEC. 5. Section 1454 of the Military
and Veterans Code is amended to read:
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 administrative and
oversight operations and maintenance 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 administrative and oversight
operations and maintenance costs.
(2) For purposes of this subdivision, "unforeseen
administrative and oversight operations and
maintenance costs" means any costs that could not have been
reasonably anticipated by the department when preparing its estimate
of annual administrative and oversight
operations and maintenance costs and that are needed to carry
out the purposes of this chapter.
SEC. 6. Section 1456 of the Military
and Veterans Code is amended to read:
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 administrative and oversight
operations and maintenance costs, as determined
pursuant to Section 1453, may be expended, upon appropriation by the
Legislature, for the purpose of establishing monuments, memorials,
and amenities.
SEC. 7. Item 8955-011-0001 of Section 2.00 of the
Budget Act of 2013 is repealed.
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 (1,500,00
Endowment Fund............................... 0)
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.
SEC. 8. (a) 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.
(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).
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.