Amended in Assembly June 8, 2016

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 Sections 1010 and 1049 of, and to repeal and add 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, West Los Angeles, and any futurebegin delete Veteran’send deletebegin insert Veteransend insertbegin insertend insert 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 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 establishbegin delete 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 deletebegin insert an MWR Advisory Committee, as specified.end insert The bill would require the department, in consultation with thebegin delete residents of each home,end deletebegin insert MWR Advisory Committee,end insert the Veterans’ Home Alliedbegin delete Council, andend deletebegin insert Council orend insert the resident council of each home, to adopt regulations related to, among other things, administering the MWR Fund and the MWRObegin delete Funds,end deletebegin insert Fundsend insert 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 allocationsbegin delete to homes for special projects for good cause, andend delete 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 beforebegin delete August 20end deletebegin insert December 31end insert of each year to specified entities. The bill wouldbegin insert require the department to maintain a $3,000,000 reserve in the MWR Fund and wouldend insert authorize the department to invest moneys in the MWR Fund in the Surplus Money Investmentbegin delete Fund.end deletebegin insert Fund or by contracting with a third-party investment broker end insertbegin insertconsistent with laws and regulations regarding selecting prudent, approved investment types.end insert

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 all:end deletebegin insert allend insert of the following:

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

begin insert

5
(b) Creates a Morale, Welfare, and Recreation Operating Fund
6at each veterans’ home.

end insert
begin delete

5 7(b)

end delete

8begin insert (c)end insert Authorizes and directs the Department of Veterans Affairs
9to promulgate rules and regulations related to the statewide
10Veterans’ Home Morale, Welfare, and Recreation Fund through
11a stakeholder process that includes members of the Veterans’
12Homes of California. It is further the intent of the Legislature that
13these rules and regulations include, but not be limited to, a yearly
14begin delete budgetingend deletebegin insert allocationend insert process for moneys to be expended in each
15home.

begin delete

13 16(c)

end delete

17begin insert(d)end insert Maintains the highest possible degree of transparent
18administration and resident involvement.

begin insert

P4    1
(e) Encourages identical Morale, Welfare, and Recreation Fund
2policies and procedures to be established, documented, and
3implemented at each veterans’ home.

end insert
4

SEC. 2.  

Section 1010 of the Military and Veterans Code is
5amended to read:

6

1010.  

As used in this chapter:

7(a) “Home” means thebegin insert Veterans’ Home of California System,
8which includes theend insert
Veterans’ Home of California, Barstow, the
9Veterans’ Home of California, Chula Vista, the Veterans’ Home
10of California, Fresno, the Veterans’ Home of California, Lancaster,
11the Veterans’ Home of California, Redding, the Veterans’ Home
12of California, Ventura, the Veterans’ Home of California, West
13Los Angeles, and the Veterans’ Home of California, Yountville,
14and any future Veterans’ Home of California which may be
15established on and after January 1, 2016.

16(b) “Administrator” means the Administrator of the Veterans’
17Home of California, Barstow, the Administrator of the Veterans’
18Home of California, Chula Vista, the Administrator of the
19Veterans’ Home of California, Fresno, the Administrator of the
20Veterans’ Home of California, Lancaster, the Administrator of the
21Veterans’ Home of California, Redding, the Administrator of the
22Veterans’ Home of California, Ventura, the Administrator of the
23Veterans’ Home of California, West Los Angeles, and the
24Administrator of the Veterans’ Home of California, Yountville,
25and the administrator of any future Veterans’ Home of California
26which may be established on and after January 1, 2016.

25 27(c) “Department” means the Department of Veterans Affairs.

26 28(d) begin delete“Director” means the Director end deletebegin insert“Secretary” means the
29Secretary end insert
of Veterans Affairs.

27 30(e) “Veteran” means a member of the home.

31

SEC. 3.  

Section 1047 of the Military and Veterans Code is
32repealed.

33

SEC. 4.  

Section 1047 is added to the Military and Veterans
34Code
, to read:

35

1047.  

(a) (1) The Veterans’ Home Morale, Welfare, and
36Recreation Special Fund (MWR Fund) is hereby created in the
37State Treasury. Notwithstanding Section 13340 of the Government
38Code, all funds deposited in the MWR Fund as authorized by this
39section shall be continuously appropriated to the department,
40without regard to fiscal year. All references in this chapter to the
P5    1“Morale, Welfare, and Recreation Fund” or “MWR Fund” are
2deemed to refer to the fund created by this paragraph.

3(2) The department shall distribute moneys in the MWR Fund
4to the homes to provide for the general welfare of the members of
5the homes.

6(3) For the purposes of this subdivision, providing for the
7general welfare of the members of a home includes, but is not
8limited to, operating a canteen,begin insert base exchange,end insert hobby shop, theater,
9library, or band, and payment for newspapers, chapel expenses,
10entertainment expenses, sports activities, celebrations,begin delete capital
11improvements that directly enhance the quality of life,end delete
or any other
12function or activity that is related to the morale, welfare, and
13recreation of the residents that would not otherwise be paid for by
14the General Fund.

15(4) The administrator of a home shall deposit all moneys
16maintained by the administrator in a Morale, Welfare, and
17Recreation Fund pursuant to this section as it read on January 1,
182015, into the Veterans’ Home Morale, Welfare, and Recreation
19Special Fund created by paragraph (1).

20(5) All future moneys collected as a result of unreimbursed costs
21of care determinations are special state funds and shall be deposited
22in the MWR Fund.

begin insert

23
(6) Each home shall establish an MWR Advisory Committee to
24provide ongoing guidance for the MWR Fund processes, including,
25but not limited to, budgeting, contracts, investments, expenditures,
26and revenues. The committee shall be comprised of the
27administrator or a representative and representatives of the
28Veterans’ Home Allied Council or resident council.

end insert
begin delete

35 29(6)

end delete

30begin insert(7)end insert On or before July 1,begin delete 2017,end deletebegin insert 2018,end insert the department, in
31consultation with thebegin delete members atend deletebegin insert MWR Advisory Committee inend insert
32 each home, the Veterans’ Home Allied Council,begin delete andend deletebegin insert orend insert the resident
33council at each home, shall adopt regulations that carry out the
34intent of this section, including, but not limited to, the
35administration of the MWR Fund and Morale, Welfare, and
36Recreation Operating Funds (MWRO Funds), the process by which
37the homes submit annual budgets and receive allocations, the
38process by which the secretary shall review and act upon the
39allocation requests and requests for augmentation of those
40allocations.

begin delete

9 P6    1(7)

end delete

2begin insert(8)end insert Moneys deposited in the MWR Fund are exempt from the
3requirements of Article 2 (commencing with Section 11270) of
4Chapter 3 of Part 1 of Division 3 of Title 2 of the Government
5Code.

6(b) (1) Thebegin delete department, upon the recommendation of the board,end delete
7begin insert departmentend insert shall annually determine the amount for disbursement
8from the MWR Fund to the homes. This amount shall be disbursed
9proportionally by each home’s relative share of the total population
10of the entire veterans’ home system. All annual allocation requests
11and annual allocations, as well as any augmentationsbegin delete or additionalend delete
12begin insert to thoseend insert allocations, shall be made known to the members of the
13homes. In making allocation decisions, the department shall
14consider whether there are economies of scale or other savings
15which may be realized by aggregating home requests or otherwise
16while still meeting the intent of the homes’ requests.

begin delete

17(2) In addition to the annual disbursement to a home from the
18MWR Fund, the secretary may, on an annual basis and in his or
19her discretion, allow for an additional one-time allocation of
20moneys in an amount no greater than 5 percent of that annual
21disbursement for a special project if the administrator of the home
22submits a proposal to the secretary that shows good cause for the
23allocation. In developing the proposal, the administrator shall
24consult with the members of the home, the Veterans’ Home Allied
25Council, or the resident council at the home.

26(3)

end delete

27begin insert(2)end insert Thebegin delete secretaryend deletebegin insert secretary, in consultation with the
28administrator of the affected home,end insert
may augment the allocation
29from the MWR Fund to any veterans’ home after making a
30determination that this action is appropriate on the basis ofbegin delete theend delete
31 factors including, but not limited to, the home’s unique age, size,
32population, and historical significance.

begin delete

33(4) The board shall review any proposed allocation pursuant to
34paragraph (1), (2), or (3). This review shall include receiving public
35comment and soliciting comments from the Veterans’ Home Allied
36Council or other resident representative body of each home. The
37board shall consider and adopt its advice at a publicly noticed
38meeting before providing that advice to the secretary. The secretary
39may act contrary to the board’s advice, but shall provide the board
P7    1with an explanation of why the advice was not the basis for the
2secretary’s chosen action.

end delete

3(c) Moneys in the MWR Fund shall not be expended for the
4following:

5(1) A medical treatment orbegin delete a treatment related to a medical
6treatment.end delete
begin insert medical care of a member of a home.end insert

7(2) The maintenancebegin insert or major capital improvementend insert of the
8physical plant of a home.

9(3) begin deleteA end deletebegin insertAny end insertfunction, operation, or activity that is not directly
10related to the morale, welfare, or recreation of the members of the
11home.

12(d) Appropriations from the General Fund for the purposes
13described in paragraph (3) of subdivision (b) may not be reduced
14for the purpose of, or to have the effect of, requiring increased
15expenditures from the MWR Fund for those described purposes.

16(e) The department shall adopt, use, and require the homes to
17use uniform accounting procedures for the MWR Fund and the
18MWRObegin delete Funds.end deletebegin insert Funds subject to the department’s oversight and
19audit as needed.end insert
The department shall prepare an itemized report
20that is organized by category,begin delete includes aend deletebegin insert includingend insert sufficient detail
21to allow legislative oversight, and accounts for all expenditures
22from, and all funds deposited into, the MWR Fundbegin insert and the MWRO
23Fundsend insert
for the previous fiscal year. The department shall submit
24the report on or beforebegin delete August 20, 2017,end deletebegin insert December 31, 2018,end insert and
25annually on or before August 20 thereafter, to the following:

26(1) The Department of Finance.

27(2) The fiscal committees of the Assembly and Senate.

28(3) The committees of the Assembly and the Senate that have
29subject matter jurisdiction over veterans’ affairs.

30(4) The Veterans’ Home Allied Council or the resident council
31of each home.

32(5) The administrator of each home.

33(f) The department shall maintain a reserve in the MWR Fund
34of not less thanbegin delete twoend deletebegin insert threeend insert million dollarsbegin delete ($2,000,000).end delete
35
begin insert ($3,000,000).end insert

36(g) The department may transfer funds from the MWR Fund to
37the Surplus Money Investment Fund for investment pursuant to
38Article 4 (commencing with Section 16470) of Chapter 3 of Part
392 of Division 4 of Title 2 of the Governmentbegin delete Code.end deletebegin insert Code or may
40hire a third-party investment broker to invest moneys from the
P8    1MWR Fund consistent with Section 16480.2 of the Government
2Code and any regulations regarding selecting prudent, approved
3investment types.end insert
The amount invested and the accrued interest or
4earnings shall be credited to the MWR Fund for allocation by the
5department.

6(h) The administrator of a home may enter into an agreement
7with the Veterans’ Home Allied Council that authorizes the council
8to operate facilities and engage in activities that are authorized by
9subdivision (b). The agreement shall be in the form and manner
10specified by the administrator and in conformity with applicable
11California law and regulations, including, but not limited to, the
12state procurement and contracting process.

13

SEC. 5.  

Section 1048 of the Military and Veterans Code is
14repealed.

15

SEC. 6.  

Section 1048 is added to the Military and Veterans
16Code
, to read:

17

1048.  

(a) A Morale, Welfare,begin insert andend insert Recreation Operating Fund
18(MWRO Fund) shall be maintained by the administrator of each
19home to administer quality of life activities for the general welfare
20of the members, pursuant to the annualbegin delete allocationend deletebegin insert allocation,
21including any augmentation provided by the Secretary,end insert
from the
22MWR Fund.

23(b) The annual allocations from the MWRbegin delete Fundend deletebegin insert Fund,end insertbegin insert including
24any augmentations provided by the Secretary,end insert
and any other quality
25of life moneys received shall be deposited in a local bank account
26established for this purpose.

27(c) Moneys in the MWRO Fund shall not be expended for the
28following:

29(1) Medical treatment orbegin delete a treatment related to a medical
30treatment.end delete
begin insert medical care for a member.end insert

31(2) The maintenancebegin insert or major capital improvementend insert of the
32begin insert Home’send insert physical plant.

33(3) A function, operation, or activity that is not directly related
34to the morale, welfare, or recreation of the members of the home.

35

SEC. 7.  

Section 1049 of the Military and Veterans Code is
36amended to read:

37

1049.  

(a) Moneys in the Morale, Welfare, and Recreation Fund
38maintained under subdivision (a) of Section 1047 may be used,
39subject to approval by the secretary, to establish or operate a
P9    1canteenbegin insert and base exchangeend insert at each home location. The canteen
2may sell goods at a profit.

begin delete

3(b) (1) Each home shall establish an account separate from the
4MWR Fund and the MWRO Fund for the purpose of receiving
5donations.

end delete
begin delete

6(2) On or before July 1, 2017, the department, in consultation
7with the residents of the home, shall adopt regulations that govern
8expenditures from the donation account described in paragraph
9(1).

end delete
begin delete

10(c)

end delete

11begin insert(b)end insert The MWRO Fund of each home shall include proceeds from
12the operation of a canteen,begin delete revenue derived from the issuance of
13prisoner-of-war special license plates pursuant to Section 5101.5
14of the Vehicle Code, interest earned on invested funds, funds
15derived from the estates of deceased residents, and any other
16moneys or property described in this chapter, including, but not
17limited to, moneys and properties received by the home from estate
18assets located outside the home, regardless of amount.end delete
begin insert or base
19exchange.end insert
Any moneys derived from golf course green fees, range
20ball fees, and operations of activitiesbegin delete specifically at theend deletebegin insert unique to
21eachend insert
Veterans’ Home ofbegin delete California, Yountville,end deletebegin insert Californiaend insert shall
22bebegin delete credited toend deletebegin insert deposited inend insert the MWRO Fund allocation for that
23
begin delete home.end deletebegin insert home after appropriate state costs, fees, and rent are
24deducted from the revenue received for those operations.end insert



O

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