BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 232| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED SB 232 Page 2 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. CONTINUED SB 232 Page 3 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 **** END **** CONTINUED SB 232 Page 4 CONTINUED