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 ****