BILL ANALYSIS                                                                                                                                                                                                    Ó






                         SENATE COMMITTEE ON VETERANS AFFAIRS
                               Senator Ben Hueso, Chair
                                                


          BILL NO:  SB 722                   HEARING DATE: 1/14/14
          AUTHOR:   Correa
          VERSION:  9/6/13
          FISCAL:   Yes (Appropriation and Urgency)
          VOTE:     Two-Thirds



                                        SUBJECT  
          
          California Mexican American Veterans' Memorial Beautification and  
          Enhancement Fund: extension of operation.


                                      DESCRIPTION  
           
          Existing law:

            1. Establishes the California Mexican American Veterans'  
             Memorial Beautification and Enhancement (CMAVMBE) Committee  
             under the jurisdiction of the Department of Veterans Affairs  
             (CALVET), to oversee enhancement of an existing memorial on  
             state grounds, and provides for its composition (seven  
             members) and duties.

           2. Authorizes the committee to, among other things, establish a  
             schedule for the design, construction, and dedication of the  
             memorial, solicit designs and devise a process for selection  
             of the final design, monitor construction, and consult with  
             and obtain final design and site orientation approval from DGS  
             and the CALVET Secretary.

           3. Requires the committee to notify the Governor and the CALVET  
             Secretary when the beautification and enhancement of the  
             memorial is complete.

           4. Provides that any monies remaining in the CMAVMBEC Account  
             will revert to the General Fund on July 1, 2014.

           
          This bill:










            1. Extend the date for the reversion of funds in this account  
             until July 1, 2016.

              (Extending operation of a continuously appropriated account  
             constitutes an appropriation.)

           2. Declares that this bill will take effect immediately as an  
             urgency statute.

               (The bill must be signed into law prior to July 1, 2014 to  
             have the intended effect.)



                                       BACKGROUND  
          
          Shortly after the World War II armistice, a group of  
          Mexican-American women banded together to create a memorial that  
          would honor their husbands and sons who had died in the military  
          service of the United States during the War.

          Beginning in 1948, the Madres launched a fundraising drive to  
          finance the memorial. Their efforts included vending homemade  
          tamales and conducting raffle sales at their local church  
          parishes and other venues.

          Dedicated in May 1951, the memorial consisted of a statue of a  
          solitary infantryman. Known as "El Soldado," the statue stood on  
          the grounds of the Mexican American Center in Sacramento.

          Weathered and worn over time, El Soldado remained at this site  
          for decades until the location was rezoned by local government.  
          The statue was donated to the State of California with the  
          expectation that it would become an official and permanent state  
          memorial. In 1975 El Soldado was moved to its present location  
          across the street from the Main (West) entrance to the State  
          Capitol.

          Beginning with AB 1350 (Polanco) in1993, several legislative  
          measures addressed the modest statue memorial. AB 1350 authorized  
          expansion and enhancement of El Soldado. The measure also  
          
          SB 722 (Correa)                                             2
          










          established the 11-member California Mexican American Veterans'  
          Memorial Beautification and Enhancement Commission as a  
          non-governmental committee of citizens authorized to establish a  
          schedule for its design, construction, and dedication; to solicit  
          designs and devise a process for selection of the final design;  
          and to monitor construction.

          In addition, AB 1350 provided that funds for the enhancement  
          would come from individuals voluntarily designating an amount on  
          their state personal income tax returns (in excess of their tax  
          liability) to the California Mexican American Veterans' Memorial  
          Beautification and Enhancement Account, also created by the  
          legislation.

          This AB 1350 Commission had no significant activity for years,  
          including public meetings, fundraising or memorial enhancements.

          By the mid-2000s, community leaders, including members of the  
          existing Commission, were working to enact legislation that would  
          jumpstart the languishing effort to enhance the El Soldado  
          memorial. Authored by Senator Gloria Negrete McLeod (D-Chino), AB  
          599 was sponsored by the American G.I. Forum and the  
          Mexican-American Veterans Memorial, Inc. The bill received no  
          formal opposition and sailed through both houses of the  
          Legislature on consent.

          SB 599 repealed the 11-member California Mexican American  
          Veterans' Memorial Beautification and Enhancement Commission and  
          created a new seven-member committee under the jurisdiction of  
          the Department of Veterans Affairs.

          The rationale was that California veterans and others favoring  
          expansion and maintenance of the memorial would be better served  
          by having it administered by an agency already dedicated to  
          serving the interests and needs of veterans - instead of by a  
          commission that had not functioned for so long.

          The new Committee is made up of five gubernatorial appointees and  
          one appointee each of the Senate President Pro Tempore and the  
          Assembly Speaker. The Committee is authorized to establish a  
          schedule for the design, construction and dedication of the  
          enhanced memorial; to solicit and select designs that may be used  
          
          SB 722 (Correa)                                             3
          










          to beautify the existing memorial; and to solicit and receive  
          contributions that will be used to off-set the costs of the  
          enhancements and beautification project. None of the members  
          receive compensation.

          SB 599 also repealed the long-defunct income tax check-off.

          In recent years the Memorial Committee had difficulty proceeding  
          on the project because there were not enough members to achieve a  
          voting quorum. At the start of calendar year 2013, Governor Brown  
          filled out the Committee by appointment and it began making  
          progress.

          The greatest challenge throughout the various life phases of the  
          Memorial project has been fundraising. Only private donations can  
          be used to support this state memorial.

          Via SB 599, the Military and Veteran Code Section 1340 authorizes  
          creation of the California Mexican American Veterans' Memorial  
          Beautification and Enhancement Account within the General Fund.  
          It specifies that all funds received by the Department of  
          Veterans Affairs shall be deposited in the account for the design  
          and construction of the California Mexican American Veterans'  
          Memorial as specified in Section 1341.

          Section 1341 provides for continuous appropriation of all funds  
          for the project, but also states that, on July 1, 2014, any  
          moneys remaining in the California Mexican American Veterans'  
          Memorial Beautification and Enhancement Account shall revert to  
          the General Fund.

           
                                       COMMENT  
          
           1.Staff Comments  :
          In February 2013 the Senate Veterans Affairs Committee held an  
          informational hearing on the status of the Memorial project. The  
          Memorial Committee and CALVET say they now are pursuing a plan  
          that would fund and construct the enhancements in three stages at  
          the following levels, respectively:  $300,000; $500,000; and  
          $800,000. According to their input, each stage would look like a  
          completed memorial, but each new stage would add significant  
          
          SB 722 (Correa)                                             4
          










          enhancements to the prior stage's design or landscaping.  
          Witnesses from the Committee and/or CALVET are expected provide  
          detail on that phased approach and the timelines for the  
          associated fundraising and construction.

          During the informational hearing, the likely need to extend the  
          funds reversion deadline was discussed. At that hearing, Senators  
          Correa, Knight and senators in attendance agreed to author  
          legislatively author the extension, which should be  
          noncontroversial. 

          2.  Related Legislation

           SB 599 (Negrete McLeod, Ch. 588, Stats. 2007) Repealed the  
          original 11-member California Mexican American Veterans' Memorial  
          Beautification and Enhancement Commission and created a new  
          seven-member committee under the jurisdiction of the Department  
          of Veterans Affairs. Also repealed the defunct associated tax  
          check-off.

          SB 1064 (Perata, Ch. 989, Stat 1999) Amended the minimum  
          contribution section to specify that the California Mexican  
          American Veterans Memorial Beautification and Enhancement Account  
          would not be subject to the $250,000 minimum contribution until  
          2001.

          AB 2366  (Cedillo, Ch. 818, Stats.1998) Provided that the  
          California Mexican American Veterans Memorial Beautification and  
          Enhancement Account could be placed on the state income tax  
          return for voluntary contributions when the department upon  
          notification from the Veterans Memorial Commission that  
          construction of the Veterans Memorial had commenced. 

          AB 1350 (Polanco, Ch. 1221, Stats. 1993) Established the Mexican  
          American Veterans Memorial Beautification and Enhancement  
          Account. This fund could not be placed on the state income tax  
          return for voluntary contribution until the Veteran's Memorial  
          Fund came off the return, and the department was notified by the  
          Veterans Memorial Commission prior to September 1 of any taxable  
          year that the Veteran's Memorial had been completed.


          
          SB 722 (Correa)                                             5
          











                                       POSITIONS  
          
          Sponsor:  Author.

          Support:  None on file.

          Oppose:   None on file

          Analysis by: Wade Cooper Teasdale
































          
          SB 722 (Correa)                                             6