BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON VETERANS AFFAIRS
                             Senator Jim Nielsen, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 2561        Hearing Date:    6/14/16
           ----------------------------------------------------------------- 
          |Author:    |Committee on Veterans Affairs                        |
          |-----------+-----------------------------------------------------|
          |Version:   |4/12/16                                              |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Urgency:   |No                     |Fiscal:    |Yes              |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Consultant:|Wade Teasdale                                        |
          |           |                                                     |
           ----------------------------------------------------------------- 
          
                            Subject:  Veterans cemeteries


           DESCRIPTION
            
          Summary:
           Establishes the California Central Coast Veterans Cemetery  
          (CCCVC) Project Donation Fund, and requires that donations for  
          this state veterans cemetery be deposited in this Fund, and be  
          expended for the maintenance and repair of the cemetery or for a  
          specified veterans cemetery maintenance or beautification  
          project. This bill would continuously appropriate the fund to  
          the department for these purposes. 

           Existing law
           
          1)Provides for the design, development, and construction of a  
            state-owned and state-operated veterans' cemetery at the site  
            of the former Fort Ord. 

          2)Establishes the CCCVC at Fort Ord Endowment Fund, which is  
            available upon appropriation by the Legislature for design,  
            construction, and maintenance costs of the cemetery. 

          3)Authorizes the Secretary, Department of Veterans Affairs  
            (CalVet Secretary), to accept donations for maintenance or  
            beautification of the veterans' cemetery. 

          4)Requires that those donations be deposited in the endowment  
            fund.
           







          AB 2561 (Committee on Veterans Affairs)                 Page 2  
          of ?
          
          
          This bill:

           1)Establishes the CCCVC at Ford Ord Project Donation Fund within  
            the State Treasury.

          2)Requires - for donations in the form of cash:

             a)   If the donor has not specified a purpose, the moneys  
               shall be deposited in the Endowment Fund, and expended for  
               the maintenance and repair of the veterans cemetery upon  
               appropriation by the Legislature.

             b)   If the donor has specified a purpose, the moneys shall  
               be deposited in the Project Donation Fund, and be expended  
               for the specified veterans cemetery maintenance or  
               beautification project designated by the donor.

          3)Provides for continuously appropriating the Project Donation  
            Fund to CalVet for these purposes without regard for fiscal  
            year.

           
          BACKGROUND
            
           The United States Department of Veterans Affairs (USDVA) builds  
          and operates federal veterans cemeteries, including nine  
          locations in California. The State also operates state veterans  
          cemeteries at two locations (Yountville and Redding) with a  
          third one under construction (CCCVC), and a fourth under  
          consideration for Orange County.

          In 1991 the federal Base Realignment and Closure Commission  
          (BRAC) recommended that the United States Army post at Ford Ord  
          in Monterey County be inactivated. The fort was closed in 1994.  
          Part of the Base Reuse Plan includes building a veterans  
          cemetery. The Legislature has authorized a state veterans  
          cemetery at that location.  
           
          Since 1978, under USDVA's State Cemetery Grants Program, the  
          federal government will fund up to 100 percent of the cost of  
          establishing, expanding, or improving state veterans'  
          cemeteries, including the acquisition of initial operating  
          equipment, if the state agrees to cover the administrative and  
          oversight costs in perpetuity.








          AB 2561 (Committee on Veterans Affairs)                 Page 3  
          of ?
          
          

          The CCCVC will be the second California state veterans cemetery  
          developed and constructed in cooperation with the USDVA Veterans  
          Cemetery Grants Program. (The Northern California Veterans  
          Cemetery near Redding, which opened in 2006, is California's  
          first such cemetery constructed under this approach.) CCCVC is  
          currently in construction with an estimated opening in the  
          autumn of 2016.

          Once completed, the cemetery will serve all veterans, but most  
          conveniently for the approximately 100,000 veterans and families  
          living within 75 miles of the site, an area that includes the  
          counties of Monterey, Santa Cruz, and San Benito, and the  
          southern half of Santa Clara County.

          The estimated interment needs of that area's veteran population  
          are 5,600 burial and crypt sites for the initial 10 years. The  
          actual interment sites to be provided in this initial phase will  
          be approximately 2,800 burial and crypt sites.

          The Phase I plan will develop 26 acres of the site. At a  
          minimum, the cemetery will provide approximately 11,500  
          gravesites in its 20-year build-out.

          AB 3035 (Laird, 2006) established an endowment to cover  
          maintenance costs -- prior to applying for grant funding for  
          construction. The endowment fund goal is $3.4 million. The  
          current strategy is to sell or lease a portion of the site not  
          required to meet burial needs for the next 100 years.
                                           
          COMMENT
           
           Author's comments  :

          The existing Northern California State Veterans Cemetery has  
          such a donation fund, and the statutory framework for the  
          proposed Southern California State Veterans Cemetery has such a  
          fund. The purpose is to provide a "fenced off" fund into which  
          CalVet may accept private donations for the cemetery's  
          improvement or enhancement.

          AB 2561 would require that donations for the cemetery be  
          deposited in the fund, and be expended for the maintenance and  
          repair of the cemetery or for a specified veterans cemetery  








          AB 2561 (Committee on Veterans Affairs)                 Page 4  
          of ?
          
          
          maintenance or beautification project. AB 2561 would  
          continuously appropriate the fund to the department for these  
          purposes.  

           Committee comments  :

          This bill conforms the code structure for the CCCSVC more  
          closely to that of the Northern California and Southern  
          California state cemeteries, each of which have distinct  
          donations funds. The endowment fund for the CCCSVC had the  
          primary purpose of containing an endowment which was  
          contemplated to be received from private sources in order to  
          help get the CCCSVC started and to defray the costs of the  
          initial work. This bill creates a separate fund, apart from the  
          endowment fund, for the purpose of clearly segregating and  
          protecting funds received from donors for maintenance and  
          beautification projects.

           Prior/related legislation
           
          SB 106 (Monning, Chapter 41, Statutes of 2013) provides CalVet  
          statutory authorization to enter into a financial agreement to  
          receive cash advances into the Endowment Fund, contingent upon  
          that agreement not requiring the state to repay or make payments  
          on cash advances.  This bill requires CalVet to develop and  
          submit a State Veterans Cemetery Grant Program application to  
          USDVA for the establishment of a veterans cemetery upon the  
          determination of the State Controller, after consultation with  
          the CalVet Secretary. This bill specifies that if the Secretary  
          fails to submit a grant application to the Program, if USDVA  
          denies the grant application, or if the grant funding is not  
          received for any other reason, requires any amounts donated,  
          received, or deposited to the Fund by specified entities to be  
          refunded.

          AB 1842 (Monning, Chapter 745, Statutes of 2012) This bill (1)  
          authorizes CalVet to enter into a financial agreement to receive  
          cash advances in the existing Endowment Fund previously created  
          to help the proposed CCC Cemetery; (2) provides such agreements  
          are permissible so long as no obligations of repayment are made  
          to the state, and each agreement is reviewed and performed in  
          consultation with the Department of Finance; (3) authorizes  
          CalVet to use money received from the prospective federal grant,  
          transferred to the Fund, to reimburse costs of developing and  








          AB 2561 (Committee on Veterans Affairs)                 Page 5  
          of ?
          
          
          submitting the grant application, to reimburse any cash advances  
          made to the Fund.

          AB 3035 (Laird, Chapter 291 Statutes of 2006) This bill creates  
          the CCC State Veterans Cemetery at Fort Ord Endowment Fund in  
          the State Treasury and directs that moneys in the Endowment Fund  
          shall be allocated, upon appropriation, to CalVet for annual  
          administrative and oversight costs of the cemetery.  
           




           POSITIONS
           
          Sponsor:  Author.

          Support:

          American G.I. Forum of California
          American Legion - Department of California
          AMVETS - Department of California
          California Association of County Veterans Service Officers 
          Military Officers Association of America - California Council of  
          Chapters
          Veterans of Foreign Wars - Department of California
          Vietnam Veterans of American - California State Council

          Oppose:   None on file.


                                      -- END --