BILL ANALYSIS                                                                                                                                                                                                    Ó






           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       AB 2561|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                   THIRD READING 


          Bill No:  AB 2561
          Author:   Committee on Veterans Affairs   
          Amended:  4/12/16 in Assembly
          Vote:     21 

           SENATE VETERANS AFFAIRS COMMITTEE:  5-0, 6/14/16
           AYES:  Nielsen, Hueso, Allen, Nguyen, Roth

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/1/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           ASSEMBLY FLOOR:  76-0, 4/28/16 (Consent) - See last page for  
            vote

           SUBJECT:   Veterans cemeteries


          SOURCE:    Author


          DIGEST:  This bill establishes the California Central Coast  
          Veterans Cemetery (CCCVC) Project Donation Fund; specifies how  
          certain donations will be deposited and expended; and  
          establishes a continuous appropriation from the Fund to the  
          Department of Veterans Affairs (CalVet) for these purposes.


          ANALYSIS:
           
           Existing law:

          1)Provides for the design, development, and construction of a  
            state-owned and state-operated veterans' cemetery at the site  








                                                                    AB 2561  
                                                                    Page  2


            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 of CalVet, to accept donations for  
            maintenance or beautification of the veterans' cemetery. 

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

          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  







                                                                    AB 2561  
                                                                    Page  3


          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.

          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, Chapter  291, Statutes of 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.









                                                                    AB 2561  
                                                                    Page  4


          Comments
          
          This bill conforms the Military and Veterans Code structure for  
          the CCCVC 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 CCCVC 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.


          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee:


          Minor and absorbable costs to CalVet for administering the fund  
          (CCCVC Project Donation Fund).


          SUPPORT:   (Verified8/3/16)


          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


          OPPOSITION:   (Verified8/3/16)


          None received







                                                                    AB 2561  
                                                                    Page  5






          ASSEMBLY FLOOR:  76-0, 4/28/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Dahle, Dodd, Eggman, Frazier, Beth Gaines,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,  
            Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty,  
            Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell,  
            Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Rendon
          NO VOTE RECORDED:  Chávez, Daly, Mathis, Olsen

          Prepared by:Wade Teasdale / V.A. / (916) 651-1503
          8/3/16 18:13:28


                                   ****  END  ****