Amended in Senate April 15, 2015

Senate Bill No. 543

Introduced by Senator Wolk

February 26, 2015

An act to amend Sections 1010, begin delete 1047, end delete 1048, and 1049 begin delete of end delete begin insert of, and to repeal and add Section 1047 of, end insert the Military and Veterans Code, relating to begin delete veterans. end delete begin insert veterans, and making an appropriation therefor. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 543, as amended, Wolk. Veterans: Veterans’ Home of California.

Existing law provides for the establishment and operation of the Veterans’ Home of California at various sites, including homes in Barstow, Chula Vista, Lancaster, Ventura, and Yountville, and provides for an administrator for each home or homesite. Existing law defines “home” and “administrator” for these purposes. Existing law establishes the begin delete Veteran’s end delete begin insert Veterans end insert begin insert ’ end insert Home Fund in the State Treasury, which includes the proceeds of certain bonds. Existing law requires, upon appropriation of the Legislature, the Department of Veterans Affairs to use money in the fund for the purpose of designing and constructing veterans’ homes in California.

This bill would clarify that veterans’ homes include the Veterans’ Homes of California located in Chula Vista, Fresno, Lancaster, Redding, Ventura, and West Los Angeles.

Existing law requires the administrator of a veterans’ home to maintain a Morale, Welfare, and Recreation Fund, which is required to be used, at the discretion of the administrator and subject to the approval of the Secretary of Veterans Affairs, to provide for the general welfare of the veterans. Existing law specifies the moneys required to be deposited into the fund, and requires the administrator to prepare an itemized report for the expenditures made out of, and deposits made into, the fund. Under existing law, those reports are required to be submitted to the secretary, the fiscal committees of the Assembly and Senate, the committees of the Assembly and the Senate that have subject matter jurisdiction over begin delete veterans end delete begin insert veterans end insert begin insert ’ end insert affairs, and the Veterans’ Home Allied Council on or before August 20 of each year.

This bill would state the intent of the Legislature to enact legislation to create a statewide Veterans’ Home Morale, Welfare, and Recreation Fund, and to authorize the Department of Veterans Affairs to promulgate rules and regulations related to that fund through a stakeholder process that includes residents of the Veterans’ Homes of California. The bill would state the Legislature’s intent that those rules and regulations include, but not be limited to, a yearly budgeting process for moneys to be expended in each home. begin delete The bill would also make technical, nonsubstantive changes to the provisions described above relating to Morale, Welfare, and Recreation Funds. end delete

begin insert

This bill would create the Veterans’ Home Morale, Welfare and Recreation Fund (”MWR Fund”), a continuously appropriated fund, in the State Treasury. The bill would require the administrator of a veterans’ home to deposit all moneys maintained in an existing Morale, Welfare and Recreation Fund into the MWR Fund. The bill would also provide for additional funding for the MWR fund from specified sources, such as operation of a canteen at a home and funds derived from the estates of deceased residents. The bill would require the department, in consultation with the residents of each home, the Veterans’ Home Allied Council, and the resident council of each home to adopt regulations that govern the process by which each home may request an annual disbursement of funds from the MWR Fund, and by which the secretary approves and acts upon a request. The bill would authorize the use of funds in the MWR Fund to provide for the general welfare of the residents of a home, as specified, and would specify restrictions on the use of those funds. The bill would authorize the administrator of a home to enter into an agreement with the Veterans’ Home Allied Council to operate facilities and activities that are related to authorized expenditures from the MWR Fund, as specified. The bill would require the department to prepare annual reports regarding moneys deposited into the MWR Fund and expenditure of those funds, as specified, and to submit the report on or before August 20 of each year to specified entities. The bill would authorize the department to invest moneys in the MWR Fund in the Surplus Money Investment Fund. The bill would authorize the administrator of each home to establish a separate account for the purpose of receiving donations and require the department, in consultation with the residents of each home, to adopt regulations for expenditure of those funds.

end insert

Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

It is the intent of the Legislature to enact
legislation that accomplishes both of the following:

(a) Creates a statewide Veterans’ Home Morale, Welfare, and
Recreation Fund.

(b) Authorizes the Department of Veterans Affairs to promulgate
rules and regulations related to the statewide Veterans’ Home
Morale, Welfare, and Recreation Fund through a stakeholder
process that includes residents of the Veterans’ Homes of
California. It is further the intent of the Legislature that these rules
and regulations include, but not be limited to, a yearly budgeting
process for moneys to be expended in each home.

SEC. 2.  

Section 1010 of the Military and Veterans Code is
amended to read:

1010.  

As used in this chapter:

(a) “Home” means the Veterans’ Home of California, Barstow,
the Veterans’ Home of California, Chula Vista, the Veterans’
Home of California, Fresno, the Veterans’ Home of California,
Lancaster, the Veterans’ Home of California, Redding, the
Veterans’ Home of California, Ventura, the Veterans’ Home of
California, West Los Angeles, and the Veterans’ Home of
California, Yountville.

(b) “Administrator” means the Administrator of the Veterans’
Home begin delete of California end delete begin insert California, end insert Barstow, the Administrator of the
Veterans’ Home of California, Chula Vista, the Administrator of
the Veterans’ Home of California, Fresno, the Administrator of
the Veterans’ Home of California, Lancaster, the Administrator
of the Veterans’ Home of California, Redding, the Administrator
of the Veterans’ Home of California, Ventura, the Administrator
of the Veterans’ Home of California, West Los Angeles, and the
Administrator of the Veterans’ Home of California, Yountville.

(c) “Department” means the Department of Veterans Affairs.

(d) “Director” means the Director of Veterans Affairs.

(e) “Veteran” means a member of the home.

begin delete

SEC. 3.  

Section 1047 of the Military and Veterans Code is
amended to read:

1047.  

(a) The administrator at each home shall maintain a
Morale, Welfare, and Recreation Fund that shall be used, at the
discretion of the administrator and subject to the approval of the
secretary, to provide for the general welfare of the veterans,
including, but not limited to, providing for operations of the
Veterans’ Home Exchange, hobby shop, motion picture theater,
library, band, and any other function that is operated for the morale,
welfare, and recreation of the veterans, and to pay for newspapers,
chapel expenses, welfare and entertainment expenses, sport
activities, celebrations, and any other activity that is for the morale,
welfare, and recreation of the veterans.

(b) Money in the Morale, Welfare, and Recreation Fund may
not be expended for any of the following:

(1) Medical treatments or any other related treatment.

(2) Maintenance of the physical plant of the home.

(3) Any function, operation, or activity that is not directly related
to the morale, welfare, or recreation of the veterans.

(c) Appropriations from the General Fund for the purposes
described in paragraph (3) of subdivision (b) may not be reduced
for the purpose of, or to have the effect of, requiring increased
expenditures from the Morale, Welfare, and Recreation Fund for
those described purposes.

(d) The administrator shall prepare an itemized report that is
organized by category and accounts for all expenditures made from
the Morale, Welfare, and Recreation Fund during the previous
fiscal year and shall submit the report on or before August 20 of
each year to all of the following:

(1) The secretary.

(2) The fiscal committees of the Assembly and the Senate.

(3) The committees of the Assembly and the Senate that have
subject matter jurisdiction over veterans’ affairs.

(4) The Veterans’ Home Allied Council.

(e) The Morale, Welfare, and Recreation Fund for the Veterans’
Home of California, Yountville, shall maintain a reserve in the
amount of two million dollars ($2,000,000). The reserve shall be
invested in securities, upon the advice of the Morale, Welfare, and
Recreation Fund Advisory Committee and with the approval of
the administrator and the secretary.

(f) The administrator may enter into an agreement with an allied
council that authorizes that council to operate facilities and
activities authorized pursuant to this section. The agreement shall
be in the form and manner as specified by the administrator.

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1047 of the end insert begin insert Military and Veterans Code end insert begin insert is
repealed. end insert

begin delete

1047.  

(a) The administrator shall maintain a Morale, Welfare,
and Recreation Fund that shall be used, at the discretion of the
administrator and subject to the approval of the secretary, to
provide for the general welfare of the veterans, including, but not
limited to, providing for operations of the Veterans’ Home
Exchange, hobby shop, motion picture theater, library, band, and
any other function that is operated for the morale, welfare, and
recreation of the veterans, and to pay for newspapers, chapel
expenses, welfare and entertainment expenses, sport activities,
celebrations, and any other activity that is for the morale, welfare,
and recreation of the veterans.

(b) Money in the Morale, Welfare, and Recreation Fund may
not be expended for any of the following:

(1) Medical treatments or any other related treatment.

(2) Maintenance of the physical plant of the home.

(3) Any function, operation, or activity that is not directly related
to the morale, welfare, or recreation of the veterans.

(c) Appropriations from the General Fund for the purposes
described in paragraph (3) of subdivision (b) may not be reduced
for the purpose of, or to have the effect of, requiring increased
expenditures from the Morale, Welfare, and Recreation Fund for
those described purposes.

(d) The administrator shall prepare an itemized report that is
organized by category and accounts for all expenditures made from
the Morale, Welfare, and Recreation Fund during the previous
fiscal year and shall submit the report on or before August 20 of
each year to all of the following:

(1) The secretary.

(2) The fiscal committees of the Assembly and the Senate.

(3) The committees of the Assembly and the Senate that have
subject matter jurisdiction over veterans’ affairs.

(4) The Veterans’ Home Allied Council.

(e) The Morale, Welfare, and Recreation Fund for the Veterans’
Home of California, Yountville, shall maintain a reserve in the
amount of two million dollars ($2,000,000). The reserve shall be
invested in securities, upon the advice of the Morale, Welfare, and
Recreation Fund Advisory Committee and with the approval of
the administrator and the secretary.

(f) The administrator may enter into an agreement with an allied
council that authorizes that council to operate facilities and
activities authorized pursuant to this section. The agreement shall
be in the form and manner as specified by the administrator.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 1047 is added to the end insert begin insert Military and Veterans
Code end insert begin insert , to read: end insert

begin insert

begin insert 1047. end insert   

(a) (1) The Veterans’ Home Morale, Welfare, and
Recreation Fund (“MWR Fund”) is hereby created in the State
Treasury. Notwithstanding Section 13340 of the Government Code,
all funds deposited in the MWR Fund as authorized by this section
shall be continuously appropriated to the department, without
regard to fiscal year. All references in this chapter to the “Morale,
Welfare, and Recreation Fund” or “MWR Fund” are deemed to
refer to the fund created by this paragraph.

(2) The administrator of a home shall deposit all moneys
maintained by the administrator in a Morale, Welfare, and
Recreation Fund pursuant to this section as it read on January 1,
2015, into the Veterans’ Home Morale, Welfare, and Recreation
Fund created by paragraph (1).

(3) All future moneys collected as a result of unreimbursed costs
of care determinations are state funds and shall be deposited in
the MWR Fund.

(4) The department, in consultation with the residents at each
home, the Veterans’ Home Allied Council, and the resident council
at each home, shall adopt regulations that govern the process by
which a home may make an annual request for a disbursement
from the MWR Fund and the process by which the Secretary of
Veterans Affairs shall review and act upon the request.

(5) Moneys deposited in the MWR Fund are exempt from the
requirements of Article 2 (commencing the Section 11270) of
Chapter 3 of Part 1 of Division 3 of Title 2 of the Government
Code.

(b) (1) The department may distribute moneys in the MWR
Fund to the homes to provide for the general welfare of the
residents of the homes.

(2) In addition to the annual disbursement to a home from the
MWR Fund, the Secretary of Veterans Affairs may, on an annual
basis and in his or her discretion, allow for an additional one-time
allocation of moneys in an amount no greater than five percent of
that annual disbursement for a special project if the administrator
of the home submits a proposal to the secretary that shows good
cause for the allocation. In developing the proposal, the
administrator shall consult with the residents of the home, the
Veterans’ Home Allied Council, or the resident council at the
home.

(3) For the purposes of this subdivision, providing for the
general welfare of the residents of a home includes, but is not
limited to, operating a canteen, hobby shop, theater, library, or
band, and payment for newspapers, chapel expenses, entertainment
expenses, sports activities, celebrations, or any other function or
activity that is related to the morale, welfare and recreation of the
residents that would not otherwise be paid for by the General
Fund.

(c) Moneys in the MWR Fund shall not be expended for the
following:

(1) A medical treatment or a treatment related to a medical
treatment.

(2) The maintenance of the physical plant of a home, except for
capital improvements that directly enhance the quality of life and
general welfare of the residents of the home.

(3) A function, operation, or activity that is not directly related
to the morale, welfare, or recreation of the residents of the home.

(d) Appropriations from the General Fund for the purposes
described in paragraph (4) of subdivision (b) may not be reduced
for the purpose of, or to have the effect of, requiring increased
expenditures from the MWR Fund for those described purposes.

(e) Beginning on August 20, 2016, and annually on August 20
thereafter, the department shall prepare a report that is organized
by category and accounts for all expenditures from the MWR Fund
for the previous fiscal year, and shall submit the report to the
following:

(1) The Department of Finance.

(2) The fiscal committees of the Assembly and Senate.

(3) The committees of the Assembly and the Senate that have
subject matter jurisdiction over veterans’ affairs.

(4) The Veterans’ Home Allied Council and the resident council
of each home.

(f) The department shall maintain a reserve in the MWR Fund
of two million dollars ($2,000,000).

(g) The Secretary of Veterans Affairs may augment the
allocation from the MWR to the Veterans’ Home of California,
Yountville, after making a determination that this action is
appropriate on the basis of the home’s unique age, size, and
historical significance.

(h) The department may transfer funds from the MWR Fund to
the Surplus Money Investment Fund for investment pursuant to
Article 4 (commencing with Section 16470) of Chapter 3 of Part
2 of Division 4 of Title 2 of the Government Code. The amount
invested and the accrued interest or earnings shall be credited to
the MWR Fund for allocation by the department.

(i) The administrator of a home may enter into an agreement
with the Veterans’ Home Allied Council that authorizes the council
to operate facilities and engage in activities that are authorized
by subdivision (b). The agreement shall be in the form and manner
specified by the administrator.

(j) (1) Each home shall establish an account separate from the
MWR Fund for the purpose of receiving donations.

(2) The department, in consultation with the residents of the
home, shall adopt regulations that govern expenditures from the
donation account described in paragraph (1).

end insert

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

Section 1048 of the Military and Veterans Code is
amended to read:

1048.  

(a) The Morale, Welfare, and Recreation Fund shall
include proceeds from the begin delete California Veterans Homes Fund,
operations of the Veterans’ Home Exchange, end delete begin insert operation of a
canteen, end insert revenue derived from the issuance of prisoner-of-war
special license plates pursuant to Section 5101.5 of the Vehicle
Code, begin delete all funds derived from golf course green fees and range ball
fees, all donations to the fund, end delete interest earned on invested funds,
funds derived from the estates of deceased begin delete members, end delete begin insert residents, end insert
and any other moneys or property described in this chapter,
including, but not limited to, moneys and properties received by
the home from estate assets located outside the home, regardless
of amount. begin insert Any moneys derived from golf course green fees, range
ball fees, and operations of activities specifically at the Veterans’
Home of California, Yountville, shall be credited to the MWR Fund
allocation for that home. end insert

(b) The begin delete administrator at each home end delete begin insert department end insert shall prepare
an itemized report that is organized by category and accounts for
all funds deposited into the Morale, Welfare, and Recreation Fund
begin delete and transmitted to the Controller under Section 1047 end delete during the
previous fiscal year and shall submit the report on or before August
20 of each year to all of the following:

(1) The begin delete secretary. end delete begin insert Department of Finance. end insert

(2) The fiscal committees of the Assembly and the Senate.

(3) The committees of the Assembly and the Senate that have
subject matter jurisdiction over begin delete veterans end delete begin insert veterans end insert begin insert ’ end insert affairs.

(4) The Veterans’ Home Allied begin delete Council. end delete begin insert Council and the
resident council of each home. end insert

begin delete SEC. 5. end delete
begin insert SEC. 6. end insert   

Section 1049 of the Military and Veterans Code is
amended to read:

1049.  

Moneys in the Morale, Welfare, and Recreation Fund
maintained under subdivision (a) of Section 1047 may be begin delete used end delete
begin insert used, subject to approval by the Secretary of Veterans Affairs, end insert to
establish or operate a begin delete Veterans’ Home Exchange that may conduct
any lawful endeavor which, in the judgment of the administrator,
will benefit the veterans, except as prohibited under subdivision
(b) of Section 1047. The administrator at each home may establish
the Veterans’ Home Exchange to operate at a profit. end delete begin insert canteen at
each home location. The canteen may sell goods at a profit. end insert