BILL NUMBER: SB 543 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY SEPTEMBER 11, 2015
AMENDED IN ASSEMBLY JUNE 18, 2015
AMENDED IN SENATE MAY 5, 2015
AMENDED IN SENATE APRIL 15, 2015
INTRODUCED BY Senator Wolk
FEBRUARY 26, 2015
An act to amend Sections 1010, 1048, 1010
and 1049 of, and to repeal and add Section 1047
Sections 1047 and 1048 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. West
Los Angeles, and any future Veteran's Home of California that is
established.
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
Recreation Special 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. 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 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.
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 from the MWR Fund, and by which the secretary approves
and acts upon a request. 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.
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 of factors including, but not limited to, 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. 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.
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 all:
of the following:
(a) Creates a statewide Veterans' Home Morale, Welfare, and
Recreation Fund.
(b) Authorizes and directs 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
members 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.
(c) Maintains the highest possible degree of transparent
administration and resident involvement.
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.
Yountville, and any future Veterans' Home of
California which may be established on and after January 1, 2016.
(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. Yountville,
and the Administrator of any future Veterans' Home of California
which may be established on and after January 1, 2016.
(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
Special 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) 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.
(2) The department shall distribute moneys in the MWR Fund to the
homes to provide for the general welfare of the members of the homes.
(3) For the purposes of this subdivision, providing for the
general welfare of the members 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, capital improvements that directly
enhance the quality of life, 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.
(4) 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 Special Fund created
by paragraph (1).
(4)
(5) All future moneys collected as a result of
unreimbursed costs of care determinations are special
state funds and shall be deposited in the MWR Fund.
(5) The
(6) On or before July 1, 2017, the
department, in consultation with the residents
members 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. carry out the intent of this
section, including, but not limited to, the administration of the MWR
Fund and Morale, Welfare, and Recreation Operating Funds (MWRO
Funds), the process by which the homes submit annual budgets and
receive allocations, the process by which the secretary shall review
and act upon the allocation requests and requests for augmentation of
those allocations .
(6)
(7) 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)
(b) (1) The department
department, upon the recommendation of the board,
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 veterans'
home system. All annual allocation requests and annual
allocations, as well as any augmentations or additional allocations,
shall be made known to the members of the homes. In making allocation
decisions, the department shall consider whether there are economies
of scale or other savings which may be realized by
aggregating home requests or otherwise while still meeting the intent
of the homes' requests.
(3)
(2) In addition to the annual disbursement to a home
from the MWR Fund, the Secretary of Veterans Affairs
secretary 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 members of the home, the
Veterans' Home Allied Council, or the resident council at the home.
(4)
(3) The Secretary of Veterans Affairs
secretary may augment the allocation from the
MWR Fund to any veterans' home after making a determination that this
action is appropriate on the basis of the factors including,
but not limited to, the home's unique age, size, population, and
historical significance.
(5)
(4) The California Veterans Board
board shall review any proposed allocation pursuant to
paragraph (3) or (4). paragraph (1), (2), or
(3). 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 shall 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, capital improvements that
directly enhance the quality of life, 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.
(3) A function, operation, or activity that is not directly
related to the morale, welfare, or recreation of the
residents members of the home.
(d) Appropriations from the General Fund for the purposes
described in paragraph (4) (3) 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 adopt, use, and require the homes to
use uniform accounting procedures for the MWR Fund and the MWRO
Funds. The department shall prepare an itemized report that is
organized by category category, includes a
sufficient detail to allow legislative oversight, and accounts
for all expenditures from, and all funds deposited into, the MWR Fund
for the previous fiscal year, and year. The
department shall submit the report on or before August 20,
2016, 2017, 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
or the resident council of each home.
(5) The administrator of each home.
(f) The department shall maintain a reserve in the MWR Fund of
not less than 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. administrator
and in conformity with applicable California law and regulations,
including, but not limited to, the state procurement and contracting
process.
(i) (1) Each home shall establish an account separate from the MWR
Fund and the MWRO 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).
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. 5. Section 1048 of the Military
and Veterans Code is repealed.
1048. (a) The Morale, Welfare, and Recreation Fund shall include
proceeds from the California Veterans Homes Fund, operations of the
Veterans' Home Exchange, revenue derived from the issuance of
prisoner-of-war special license plates pursuant to Section 5101.5 of
the Vehicle Code, all funds derived from golf course green fees and
range ball fees, all donations to the fund, interest earned on
invested funds, funds derived from the estates of deceased members,
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.
(b) The administrator shall prepare an itemized report that is
organized by category and accounts for all funds deposited into the
Morale, Welfare, and Recreation Fund and transmitted to the
Controller under Section 1047 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.
SEC. 6. Section 1048 is added to the
Military and Veterans Code , to read:
1048. (a) A Morale, Welfare, Recreation Operating Fund (MWRO
Fund) shall be maintained by the administrator of each home to
administer quality of life activities for the general welfare of the
members, pursuant to the annual allocation from the MWR Fund.
(b) 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.
(c) Moneys in the MWRO Fund shall not be expended for the
following:
(1) Medical treatment or a treatment related to a medical
treatment.
(2) The maintenance of the physical plant.
(3) A function, operation, or activity that is not directly
related to the morale, welfare, or recreation of the members of the
home.
SEC. 6. SEC. 7. Section 1049 of the
Military and Veterans Code is amended to read:
1049. (a) 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, secretary, to establish or
operate a canteen at each home location. The canteen may sell goods
at a profit.
(b) (1) Each home shall establish an account separate from the MWR
Fund and the MWRO Fund for the purpose of receiving donations.
(2) On or before July 1, 2017, the department, in consultation
with the residents of the home, shall adopt regulations that govern
expenditures from the donation account described in paragraph (1).
(c) The MWRO Fund of each home 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 MWRO Fund allocation for that home.