BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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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

           SENATE BUDGET & FISCAL REVIEW COMMITTEE  :  14-0, 9/12/13
          (pursuant to Senate Rule 29.10)
          AYES:  Leno, Emmerson, Anderson, Beall, Berryhill, Block,  
            DeSaulnier, Hill, Jackson, Monning, Nielsen, Roth, Torres,  
            Wright
          NO VOTE RECORDED:  Hancock, Wyland

           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 also requires that any money transferred as  
          part of the budget action granting a loan to the Fund be  
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          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  :    

          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 the Department of Veterans Affairs (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.Requires that moneys in the fund be allocated to DVA for the  
            nonreimbursable costs of design and construction and the  
            annual operations and maintenance costs of the veterans  
            cemetery for the next 10 years. 


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          2.Authorizes 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.

          3.Requires DVA to develop and submit a State Cemetery Grants  
            Application to the United States Department of Veterans  
            Affairs 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.

          4.Requires the Controller to consider the estimated revenues  
            from specified fees expected to be deposited into the  
            Endowment Fund in making this determination.

          5.Allows any moneys 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.
           
           6.Contains an urgency clause.
           
          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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