Amended in Assembly June 18, 2015

Amended in Senate May 5, 2015

Amended in Senate April 15, 2015

Senate Bill No. 543

Introduced by Senator Wolk

February 26, 2015

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

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 Veterans’ 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 veterans’ affairs, and the Veterans’ Home Allied Council on or before August 20 of each year.

This bill would create the Veterans’ Home Morale, begin delete Welfare end delete begin insert Welfare, end insert and Recreation Fund begin delete (”MWR Fund”), end delete begin insert (MWR Fund), end insert a continuously appropriated fund, in the State Treasury. The bill would require the administrator of a veterans’ home to deposit all moneys maintained by the administrator in an existing Morale, begin delete Welfare end delete begin insert Welfare, end insert and Recreation Fund into the statewide MWR Fund. The bill would also provide for additional funding for the MWR begin delete fund end delete begin insert Fund end insert 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 begin delete home end delete begin insert home, end insert to adopt regulations that govern the process by which each home may request an annual disbursement begin delete of funds end delete 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 require the department to annually determine the total amount for disbursement from the MWR begin delete fund, end delete begin insert Fund, end insert and for that disbursement to be allocated proportionally to each home’s relative share of the total population of the entire begin delete veterans end delete begin insert veterans’ end insert home system. The bill would authorize additional allocations to homes for special projects for good cause, and to begin delete the Veteran’s Home of California, Yountville, end delete begin insert any veterans’ home end insert if it is appropriate on the basis of the home’s unique age, size, begin insert population, end insert and historical significance. 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 require the administrator of each home to establish a begin insert Morale, Welfare, and Recreation Operating Fund (MWRO Fund) to administer quality of life activities for the general welfare of the residents and receive funds from the MWR Fund, as specified, and a end insert separate account for the purpose of receiving donations and begin insert would end insert require the department, in consultation with the residents of each home, to adopt regulations for expenditure of those funds.

Vote: majority. Appropriation: yes. Fiscal committee: yes. 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 of California, 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.

SEC. 3.  

Section 1047 of the Military and Veterans Code is
repealed.

SEC. 4.  

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

1047.  

(a) (1) The Veterans’ Home Morale, Welfare, and
Recreation Fund begin delete (“MWR Fund”) end delete begin insert (MWR Fund) end insert 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).

begin insert

(3) A Morale, Welfare, and Recreation Operating Fund (MWRO
Fund) shall be created by the administrator of each home to
administer quality of life activities for the general welfare of the
residents, pursuant to the annual allocation from the MWR Fund.
The annual allocations from the MWR Fund and any other quality
of life moneys received shall be deposited in a local bank account
established for this purpose.

end insert begin delete

(3)

end delete

begin insert (4) end insert  All future moneys collected as a result of unreimbursed costs
of care determinations are state funds and shall be deposited in the
MWR Fund.

begin delete

(4)

end delete

begin insert (5) end insert  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.

begin delete

(5)

end delete

begin insert (6) end insert  Moneys deposited in the MWR Fund are exempt from the
requirements of Article 2 (commencing with 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) The department shall annually determine the total amount
for disbursement from the MWR Fund to the homes. This amount
shall be disbursed proportionally by each home’s relative share of
the total population of the entire veterans home system.

(3) 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 5 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.

(4) The Secretary of Veterans Affairs may augment the
allocation from the MWR begin insert Fund end insert to begin delete the Veterans’ Home of
California, Yountville, end delete begin insert any veterans’ home end insert after making a
determination that this action is appropriate on the basis of the
home’s unique age, size, begin insert population, end insert and historical significance.

(5) The California Veterans Board shall review any proposed
allocation pursuant to paragraph (3) or (4). This review shall
include receiving public comment and soliciting comments from
the Veterans’ Home Allied Council or other resident representative
body of each home. The board shall consider and adopt its advice
at a publicly noticed meeting before providing that advice to the
secretary. The secretary may act contrary to the board’s advice,
but must provide the board with an explanation of why the advice
was not the basis for the secretary’s chosen action.

(6) 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, begin insert capital improvements that
directly enhance the quality of life, end insert or any other function or activity
that is related to the morale, begin delete welfare end delete begin insert welfare, end insert 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 begin delete home, except for
capital improvements that directly enhance the quality of life and
general welfare of the residents of the end delete 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) The department shall prepare an itemized report that is
organized by category and accounts for all expenditures from, and
all funds deposited into, the MWR Fund for the previous fiscal
year, and shall submit the report on or before August 20, 2016,
and annually on or before August 20 thereafter, 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 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.

(h) 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.

(i) (1) Each home shall establish an account separate from the
MWR Fund begin insert and the MWRO Fund end insert 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).

SEC. 5.  

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

1048.  

The Morale, Welfare, and Recreation Fund shall include
proceeds from the operation of a canteen, revenue derived from
the issuance of prisoner-of-war special license plates pursuant to
Section 5101.5 of the Vehicle Code, interest earned on invested
funds, funds derived from the estates of deceased residents, 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.
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.

SEC. 6.  

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 used,
subject to approval by the Secretary of Veterans Affairs, to
establish or operate a canteen at each home location. The canteen
may sell goods at a profit.