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 --