BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 232|
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UNFINISHED BUSINESS
Bill No: SB 232
Author: Monning (D), et al.
Amended: 9/6/13
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
ASSEMBLY FLOOR : Not available
SUBJECT : California Central Coast State Veterans Cemetery at
Fort Ord
Endowment
SOURCE : Author
DIGEST : This bill repeals a budget allocation for a loan to
the Central Coast State Veterans Cemetery at Fort Ord
(Cemetery), appropriates $1 million to the Central Coast State
Veterans Cemetery at Fort Ord Endowment Fund (Fund) for
construction of the Cemetery, and amends current statutory
requirements of regarding the use of interest on a principal in
the Fund. This bill requires that any money transferred as part
of the budget action granting a loan to the Fund be returned to
the General Fund.
Assembly Amendments delete the Senate version of the bill
relating to public transit employees, and add the current
language, coauthors and an urgency clause.
ANALYSIS :
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Existing law:
1.Creates the California Central Coast State Veterans Cemetery
at Fort Ord Fund in the State Treasury, and requires moneys in
the Fund to be allocated, upon appropriation by the
Legislature, to DVA for the annual administrative and
oversight costs of the veterans cemetery, as specified, and to
generate funding through interest for the veterans cemetery.
2.Requires moneys in the Fund to be invested to generate ongoing
earnings to cover the estimated annual oversight and
maintenance costs associated with the veterans cemetery, as
provided.
3.Requires DVA 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 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.
4.Authorizes the Director of Finance to transfer up to
$1,500,000 as a loan from the General Fund to the Fund, and
requires the loan to be repaid with interest, as provided.
This bill:
1.Deletes the definition of "Administrative and oversight costs"
found in California Military and Veterans Code (CMVC) Section
1450(a).
2.Inserts a new defined term as CMVC Section 1450(c),
"Operations and maintenance costs." These are defined as
costs incurred by the California Department of Veterans
Affairs (Department) for the operations and maintenance of the
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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3.Inserts new defined term into CMVC Section 1450,
"Nonreimbursable costs of design and construction." These
costs are defined as the "...costs of planning, design, and
construction of the Central Coast State Veterans Cemetery at
Fort Ord that are not reimbursable from the moneys received
from the [Grant Program] as allowable costs as established by
the [Grant Program]."
4.Alters CMVC Section 1451 regarding the Fund as follows:
A. Money in the Fund shall be allocated on appropriation by
the legislation for non-reimbursable costs of design and
construction and the annual operations and maintenance
costs for the next 10 years.
B. Deletes the requirement that money 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 Cemetery.
C. Deletes the requirement that money in the Fund shall be
invested to generate earnings to fund annual oversight and
maintenance costs associated with the Cemetery.
D. States that money in the Fund may be invested to
generate earnings to offset annual operations and
maintenance costs associated with the Cemetery.
1.Deletes references to "annual administrative and oversight
costs" and substitutes the new term "operations and
maintenance costs" throughout CMVC Sections 1451, 1452, 1453,
1454, and 1456.
2.Changes the due date for a report on the status of the Fund
from July 1, 2007, to July 1, 2014 (Report).
3.Deletes the requirement that the Report include the amount of
additional principal needed to generate annual interest
revenue to cover administrative and oversight costs.
4.Requires the Report to include the estimated amount needed
that will sufficiently cover operations and maintenance costs.
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5.Deletes the requirement that the Controller determine that the
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 State Veterans Cemetery Grant Program
application.
6. Adds a requirement that the Controller determine that the
Fund have adequate amounts to fully fund the non-reimbursable
design and construction and the operations and maintenance
costs for the next 10 years.
7. Adds a requirement that the Controller consider the
estimated revenues from the fees described in CMVC Section
1455 (internment and other similar fees) expected to be
deposited in the Fund in making the determination as to
whether or not the Fund has adequate amounts to fully fund
the non-reimbursable design and construction and the
operations and maintenance costs for the next 10 years.
8. Deletes the requirement that Department not proceed with
advertisement for construction bids until the Fund has
adequate principal to cover annual administrative and
oversight costs.
9. Adds a requirement that the Department not proceed with
advertisement for construction bids until the Fund has
adequate principal to cover annual administrative and
oversight costs.
10.Alters the requirement that money received from the federal
State Veteran Cemetery Program Grant (Grant Program) be used
to reimburse the Fund for costs of developing the Grant
Program application and other costs to state that such money
shall be used to reimburse the Fund for "allowable costs as
established by the United States Department of Veterans
Affairs State Veterans Cemetery Program."
11.Repeals the section of the Budget Act of 2013 that
transferred $1.5 million to the Fund as a loan.
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12.Appropriates $1 million from the General Fund to the Fund
for construction of the Cemetery.
13.Requires that any money transferred as part of the budget
action granting a loan to the Central Coast State Veterans
Cemetery at Fort Ord Endowment Fund be returned to the
General Fund.
14.Requires annual reporting by the Secretary of the Department
regarding expenditures from the Fund.
15.Contains an urgency clause stating that the funds are
necessary by October 1, 2013, so that the Cemetery project
may qualify to receive "millions of dollars in federal funds
to cover the cost of?" building the Cemetery.
16.Contains an urgency clause.
17.Makes technical changes.
Comments
According to the author, "The creation of the Central Coast
Veteran's Cemetery, California's second ever state veteran's
cemetery, is dependent upon millions of dollars in Federal
reimbursement funding from the United States Department of
Veteran's Affair's Veterans State Cemetery Grants Program."
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
AL:nl 9/11/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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