Amended in Assembly September 11, 2015

Amended in Assembly June 18, 2015

Amended in Senate May 5, 2015

Amended in Senate April 15, 2015

Senate BillNo. 543


Introduced by Senator Wolk

February 26, 2015


An act to amend Sectionsbegin delete 1010, 1048,end deletebegin insert 1010end insert and 1049 of, and to repeal and addbegin delete Section 1047end deletebegin insert Sections 1047 and 1048end insert 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,begin delete and West Los Angeles.end deletebegin insert West Los Angeles, and any future Veteran’s Home of California that is established.end insert

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, Welfare, and Recreationbegin insert Specialend insert 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 by the administrator in an existing Morale, Welfare, and Recreation Fund into the statewide MWR Fund.begin delete 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.end deletebegin insert The bill would require the administrator of each home to establish a 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 to establish a separate account for the purpose of receiving donations and would require the department, in consultation with the residents of each home, to adopt regulations for expenditure of those funds.end insert 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 regulationsbegin delete that govern the process by which each home may request an annual disbursement from the MWR Fund, and by which the secretary approves and acts upon a request.end deletebegin insert related to, among other things, administering the MWR Fund and the MWRO Funds, and the process by which the homes submit and receive budget allocations.end insert 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 Fund, and for that disbursement to be allocated proportionally to each home’s relative share of the total population of the entire veterans’ home system. The bill would authorize additional allocations to homes for special projects for good cause, and to any veterans’ home if it is appropriate on the basis ofbegin insert factors including, but not limited to,end insert the home’s unique age, size, population, 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.begin delete The bill would require the administrator of each home to establish a 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 separate account for the purpose of receiving donations and would require the department, in consultation with the residents of each home, to adopt regulations for expenditure of those funds.end delete

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

P3    1

SECTION 1.  

It is the intent of the Legislature to enact
2legislation that accomplishesbegin delete bothend deletebegin insert all:end insert of the following:

3 (a) Creates a statewide Veterans’ Home Morale, Welfare, and
4Recreation Fund.

5 (b) Authorizesbegin insert and directsend insert the Department of Veterans Affairs
6to promulgate rules and regulations related to the statewide
7Veterans’ Home Morale, Welfare, and Recreation Fund through
8a stakeholder process that includesbegin delete residentsend deletebegin insert membersend insert of the
9Veterans’ Homes of California. It is further the intent of the
10Legislature that these rules and regulations include, but not be
11limited to, a yearly budgeting process for moneys to be expended
12in each home.

begin insert

13(c) Maintains the highest possible degree of transparent
14administration and resident involvement.

end insert
P4    1

SEC. 2.  

Section 1010 of the Military and Veterans Code is
2amended to read:

3

1010.  

As used in this chapter:

4(a) “Home” means the Veterans’ Home of California, Barstow,
5the Veterans’ Home of California, Chula Vista, the Veterans’
6Home of California, Fresno, the Veterans’ Home of California,
7Lancaster, the Veterans’ Home of California, Redding, the
8Veterans’ Home of California, Ventura, the Veterans’ Home of
9California, West Los Angeles, and the Veterans’ Home of
10California,begin delete Yountville.end deletebegin insert Yountville, and any future Veterans’ Home
11of California which may be established on and after January 1,
122016.end insert

13(b) “Administrator” means the Administrator of the Veterans’
14Home of California, Barstow, the Administrator of the Veterans’
15Home of California, Chula Vista, the Administrator of the
16Veterans’ Home of California, Fresno, the Administrator of the
17Veterans’ Home of California, Lancaster, the Administrator of the
18Veterans’ Home of California, Redding, the Administrator of the
19Veterans’ Home of California, Ventura, the Administrator of the
20Veterans’ Home of California, West Los Angeles, and the
21Administrator of the Veterans’ Home of California,begin delete Yountville.end delete
22begin insert Yountville, and the Administrator of any future Veterans’ Home
23of California which may be established on and after January 1,
242016.end insert

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

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

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

28

SEC. 3.  

Section 1047 of the Military and Veterans Code is
29repealed.

30

SEC. 4.  

Section 1047 is added to the Military and Veterans
31Code
, to read:

32

1047.  

(a) (1) The Veterans’ Home Morale, Welfare, and
33Recreationbegin insert Specialend insert Fund (MWR Fund) is hereby created in the
34State Treasury. Notwithstanding Section 13340 of the Government
35Code, all funds deposited in the MWR Fund as authorized by this
36section shall be continuously appropriated to the department,
37without regard to fiscal year. All references in this chapter to the
38“Morale, Welfare, and Recreation Fund” or “MWR Fund” are
39deemed to refer to the fund created by this paragraph.

begin delete

P5    1(2) The administrator of a home shall deposit all moneys
2 maintained by the administrator in a Morale, Welfare, and
3Recreation Fund pursuant to this section as it read on January 1,
42015, into the Veterans’ Home Morale, Welfare, and Recreation
5Fund created by paragraph (1).

6(3) A Morale, Welfare, and Recreation Operating Fund (MWRO
7Fund) shall be created by the administrator of each home to
8administer quality of life activities for the general welfare of the
9residents, pursuant to the annual allocation from the MWR Fund.
10The annual allocations from the MWR Fund and any other quality
11of life moneys received shall be deposited in a local bank account
12established for this purpose.

end delete
begin insert

13(2) The department shall distribute moneys in the MWR Fund
14to the homes to provide for the general welfare of the members of
15the homes.

end insert
begin insert

16(3) For the purposes of this subdivision, providing for the
17general welfare of the members of a home includes, but is not
18limited to, operating a canteen, hobby shop, theater, library, or
19band, and payment for newspapers, chapel expenses, entertainment
20expenses, sports activities, celebrations, capital improvements that
21directly enhance the quality of life, or any other function or activity
22that is related to the morale, welfare, and recreation of the
23residents that would not otherwise be paid for by the General
24Fund.

end insert
begin insert

25(4) The administrator of a home shall deposit all moneys
26maintained by the administrator in a Morale, Welfare, and
27Recreation Fund pursuant to this section as it read on January 1,
282015, into the Veterans’ Home Morale, Welfare, and Recreation
29Special Fund created by paragraph (1).

end insert
begin delete

30 (4)

end delete

31begin insert(5)end insert All future moneys collected as a result of unreimbursed costs
32of care determinations arebegin insert specialend insert state funds and shall be deposited
33in the MWR Fund.

begin delete

34(5) The

end delete

35begin insert(6)end insertbegin insertend insertbegin insertOn or before July 1, 2017, theend insert department, in consultation
36with thebegin delete residentsend deletebegin insert membersend insert at each home, the Veterans’ Home
37Allied Council, and the resident council at each home, shall adopt
38regulations that begin delete govern the process by which a home may make
39an annual request for a disbursement from the MWR Fund and the
40process by which the Secretary of Veterans Affairs shall review
P6    1and act upon the request.end delete
begin insert carry out the intent of this section,
2including, but not limited to, the administration of the MWR Fund
3and Morale, Welfare, and Recreation Operating Funds (MWRO
4Funds), the process by which the homes submit annual budgets
5and receive allocations, the process by which the secretary shall
6review and act upon the allocation requests and requests for
7augmentation of those allocations.end insert

begin delete

8 (6)

end delete

9begin insert(7)end insert Moneys deposited in the MWR Fund are exempt from the
10requirements of Article 2 (commencing with Section 11270) of
11Chapter 3 of Part 1 of Division 3 of Title 2 of the Government
12Code.

begin delete

13(b) (1) The department may distribute moneys in the MWR
14Fund to the homes to provide for the general welfare of the
15residents of the homes.

end delete
begin delete

16 (2)

end delete

17begin insert(b)end insertbegin insertend insertbegin insert(1)end insert Thebegin delete departmentend deletebegin insert department, upon the recommendation
18of the board,end insert
shall annually determine thebegin delete totalend delete amount for
19disbursement from the MWR Fund to the homes. This amount
20shall be disbursed proportionally by each home’s relative share of
21the total population of the entirebegin delete veteransend deletebegin insert veterans’end insert home system.
22begin insert All annual allocation requests and annual allocations, as well as
23any augmentations or additional allocations, shall be made known
24to the members of the homes. In making allocation decisions, the
25department shall consider whether there are economies of scale
26or other savings which may be realized by aggregating home
27requests or otherwise while still meeting the intent of the homes’
28requests.end insert

begin delete

29 (3)

end delete

30begin insert(2)end insert In addition to the annual disbursement to a home from the
31MWR Fund, thebegin delete Secretary of Veterans Affairsend deletebegin insert secretaryend insert may, on
32an annual basis and in his or her discretion, allow for an additional
33one-time allocation of moneys in an amount no greater than 5
34percent of that annual disbursement for a special project if the
35administrator of the home submits a proposal to the secretary that
36shows good cause for the allocation. In developing the proposal,
37the administrator shall consult with thebegin delete residentsend deletebegin insert membersend insert of the
38home, the Veterans’ Home Allied Council, or the resident council
39at the home.

begin delete

40 (4)

end delete

P7    1begin insert(3)end insert Thebegin delete Secretary of Veterans Affairsend deletebegin insert secretaryend insert may augment
2the allocation from the MWR Fund to any veterans’ home after
3making a determination that this action is appropriate on the basis
4of thebegin insert factors including, but not limited to, theend insert home’s unique age,
5size, population, and historical significance.

begin delete

6 (5)

end delete

7begin insert(4)end insert Thebegin delete California Veterans Boardend deletebegin insert boardend insert shall review any
8proposed allocation pursuant tobegin delete paragraph (3) or (4).end deletebegin insert paragraph
9(1), (2), or (3).end insert
This review shall include receiving public comment
10and soliciting comments from the Veterans’ Home Allied Council
11or other resident representative body of each home. The board
12shall consider and adopt its advice at a publicly noticed meeting
13before providing that advice to the secretary. The secretary may
14act contrary to the board’s advice, butbegin delete mustend deletebegin insert shallend insert provide the board
15with an explanation of why the advice was not the basis for the
16secretary’s chosen action.

begin delete

17(6) For the purposes of this subdivision, providing for the
18general welfare of the residents of a home includes, but is not
19limited to, operating a canteen, hobby shop, theater, library, or
20band, and payment for newspapers, chapel expenses, entertainment
21expenses, sports activities, celebrations, capital improvements that
22directly enhance the quality of life, or any other function or activity
23that is related to the morale, welfare, and recreation of the residents
24that would not otherwise be paid for by the General Fund.

end delete

25(c) Moneys in the MWR Fund shall not be expended for the
26following:

27(1) A medical treatment or a treatment related to a medical
28treatment.

29(2) The maintenance of the physical plant of a home.

30(3) A function, operation, or activity that is not directly related
31to the morale, welfare, or recreation of thebegin delete residentsend deletebegin insert membersend insert of
32the home.

33(d) Appropriations from the General Fund for the purposes
34described in paragraphbegin delete (4)end deletebegin insert (3)end insert of subdivision (b) may not be
35reduced for the purpose of, or to have the effect of, requiring
36increased expenditures from the MWR Fund for those described
37purposes.

38(e) begin insertThe department shall adopt, use, and require the homes to
39use uniform accounting procedures for the MWR Fund and the
40MWRO Funds. end insert
The department shall prepare an itemized report
P8    1that is organized bybegin delete categoryend deletebegin insert category, includes a sufficient detail
2to allow legislative oversight,end insert
and accounts for all expenditures
3from, and all funds deposited into, the MWR Fund for the previous
4fiscalbegin delete year, andend deletebegin insert year. The departmentend insert shall submit the report on
5or before August 20,begin delete 2016,end deletebegin insert 2017,end insert and annually on or before August
620 thereafter, to the following:

7(1) The Department of Finance.

8(2) The fiscal committees of the Assembly and Senate.

9(3) The committees of the Assembly and the Senate that have
10subject matter jurisdiction over veterans’ affairs.

11(4) The Veterans’ Home Allied Councilbegin delete andend deletebegin insert orend insert the resident
12council of each home.

begin insert

13(5) The administrator of each home.

end insert

14(f) The department shall maintain a reserve in the MWR Fund
15ofbegin insert not less thanend insert two million dollars ($2,000,000).

16(g) The department may transfer funds from the MWR Fund to
17the Surplus Money Investment Fund for investment pursuant to
18Article 4 (commencing with Section 16470) of Chapter 3 of Part
192 of Division 4 of Title 2 of the Government Code. The amount
20invested and the accrued interest or earnings shall be credited to
21the MWR Fund for allocation by the department.

22(h) The administrator of a home may enter into an agreement
23with the Veterans’ Home Allied Council that authorizes the council
24to operate facilities and engage in activities that are authorized by
25subdivision (b). The agreement shall be in the form and manner
26specified by thebegin delete administrator.end deletebegin insert administrator and in conformity
27with applicable California law and regulations, including, but not
28limited to, the state procurement and contracting process.end insert

begin delete

29(i) (1) Each home shall establish an account separate from the
30MWR Fund and the MWRO Fund for the purpose of receiving
31donations.

32(2) The department, in consultation with the residents of the
33home, shall adopt regulations that govern expenditures from the
34donation account described in paragraph (1).

end delete
begin delete35

SEC. 5.  

Section 1048 of the Military and Veterans Code is
36amended to read:

37

1048.  

The Morale, Welfare, and Recreation Fund shall include
38proceeds from the operation of a canteen, revenue derived from
39the issuance of prisoner-of-war special license plates pursuant to
40Section 5101.5 of the Vehicle Code, interest earned on invested
P9    1funds, funds derived from the estates of deceased residents, and
2any other moneys or property described in this chapter, including,
3but not limited to, moneys and properties received by the home
4from estate assets located outside the home, regardless of amount.
5Any moneys derived from golf course green fees, range ball fees,
6and operations of activities specifically at the Veterans’ Home of
7California, Yountville, shall be credited to the MWR Fund
8allocation for that home.

end delete
9begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 1048 of the end insertbegin insertMilitary and Veterans Codeend insertbegin insert is
10repealed.end insert

begin delete
11

1048.  

(a) The Morale, Welfare, and Recreation Fund shall
12include proceeds from the California Veterans Homes Fund,
13operations of the Veterans’ Home Exchange, revenue derived from
14the issuance of prisoner-of-war special license plates pursuant to
15Section 5101.5 of the Vehicle Code, all funds derived from golf
16course green fees and range ball fees, all donations to the fund,
17interest earned on invested funds, funds derived from the estates
18of deceased members, and any other moneys or property described
19in this chapter, including, but not limited to, moneys and properties
20received by the home from estate assets located outside the home,
21regardless of amount.

22(b) The administrator shall prepare an itemized report that is
23organized by category and accounts for all funds deposited into
24the Morale, Welfare, and Recreation Fund and transmitted to the
25Controller under Section 1047 during the previous fiscal year and
26shall submit the report on or before August 20 of each year to all
27of the following:

28(1) The secretary.

29(2) The fiscal committees of the Assembly and the Senate.

30(3) The committees of the Assembly and the Senate that have
31subject matter jurisdiction over veterans affairs.

32(4) The Veterans’ Home Allied Council.

end delete
33begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 1048 is added to the end insertbegin insertMilitary and Veterans
34Code
end insert
begin insert, to read:end insert

begin insert
35

begin insert1048.end insert  

(a) A Morale, Welfare, Recreation Operating Fund
36(MWRO Fund) shall be maintained by the administrator of each
37home to administer quality of life activities for the general welfare
38of the members, pursuant to the annual allocation from the MWR
39Fund.

P10   1(b) The annual allocations from the MWR Fund and any other
2quality of life moneys received shall be deposited in a local bank
3account established for this purpose.

4(c) Moneys in the MWRO Fund shall not be expended for the
5following:

6(1) Medical treatment or a treatment related to a medical
7treatment.

8(2) The maintenance of the physical plant.

9(3) A function, operation, or activity that is not directly related
10to the morale, welfare, or recreation of the members of the home.

end insert
11

begin deleteSEC. 6.end delete
12begin insertSEC. 7.end insert  

Section 1049 of the Military and Veterans Code is
13amended to read:

14

1049.  

begin insert(a)end insertbegin insertend insertMoneys in the Morale, Welfare, and Recreation
15Fund maintained under subdivision (a) of Section 1047 may be
16used, subject to approval by thebegin delete Secretary of Veterans Affairs,end delete
17begin insert secretary,end insert to establish or operate a canteen at each home location.
18The canteen may sell goods at a profit.

begin insert

19(b) (1) Each home shall establish an account separate from the
20MWR Fund and the MWRO Fund for the purpose of receiving
21donations.

end insert
begin insert

22(2) On or before July 1, 2017, the department, in consultation
23with the residents of the home, shall adopt regulations that govern
24expenditures from the donation account described in paragraph
25(1).

end insert
begin insert

26(c) The MWRO Fund of each home shall include proceeds from
27the operation of a canteen, revenue derived from the issuance of
28prisoner-of-war special license plates pursuant to Section 5101.5
29of the Vehicle Code, interest earned on invested funds, funds
30derived from the estates of deceased residents, and any other
31moneys or property described in this chapter, including, but not
32limited to, moneys and properties received by the home from estate
33assets located outside the home, regardless of amount. Any moneys
34derived from golf course green fees, range ball fees, and operations
35of activities specifically at the Veterans’ Home of California,
36Yountville, shall be credited to the MWRO Fund allocation for
37that home.

end insert


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