BILL NUMBER: SB 543 AMENDED
BILL TEXT
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
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 future Veteran's
Veterans ' 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 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. an MWR Advisory
Committee, as specified. The bill would require the department,
in consultation with the residents of each home,
MWR Advisory Committee, the Veterans' Home Allied
Council, and Council or the resident council of
each home, to adopt regulations related to, among other things,
administering the MWR Fund and the MWRO Funds,
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 December 31 of each year to specified
entities. The bill would require the department to maintain a
$3,000,000 reserve in the MWR Fund and would authorize the
department to invest moneys in the MWR Fund in the Surplus Money
Investment Fund. Fund or by contracting with
a third-party investment broker consistent with laws and
regulations regarding selecting prudent, approved investment types.
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 all: all
of the following:
(a) Creates a statewide Veterans' Home Morale, Welfare, and
Recreation Fund.
(b) Creates a Morale, Welfare, and Recreation Operating Fund at
each veterans' home.
(b)
(c) 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 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 allocation process for moneys
to be expended in each home.
(c)
(d) Maintains the highest possible degree of
transparent administration and resident involvement.
(e) Encourages identical Morale, Welfare, and Recreation Fund
policies and procedures to be established, documented, and
implemented at each veterans' 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 System,
which includes 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, 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, 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
"Secretary" means the Secretary 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 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, base exchange, 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).
(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.
(6) Each home shall establish an MWR Advisory Committee to provide
ongoing guidance for the MWR Fund processes, including, but not
limited to, budgeting, contracts, investments, expenditures, and
revenues. The committee shall be comprised of the administrator or a
representative and representatives of the Veterans' Home Allied
Council or resident council.
(6)
(7) On or before July 1, 2017,
2018, the department, in consultation with the members
at MWR Advisory Committee in each home, the
Veterans' Home Allied Council, and or
the resident council at each home, shall adopt regulations that 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.
(7)
(8) 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, upon the recommendation of the
board, department shall annually determine the
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. All annual
allocation requests and annual allocations, as well as any
augmentations or additional to those
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.
(2) In addition to the annual disbursement to a home from the MWR
Fund, the 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
members of the home, the Veterans' Home Allied Council, or the
resident council at the home.
(3)
(2) The secretary secretary, in
consultation with the administrator of the affected home, 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.
(4) The board shall review any proposed allocation pursuant to
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 shall provide the board
with an explanation of why the advice was not the basis for the
secretary's chosen action.
(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. medical care of a member of a home.
(2) The maintenance or major capital improvement of the
physical plant of a home.
(3) A Any function, operation, or
activity that is not directly related to the morale, welfare, or
recreation of the members of the home.
(d) 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 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. Funds subject to the department's oversight and
audit as needed. The department shall prepare an itemized
report that is organized by category, includes a
including sufficient detail to allow legislative
oversight, and accounts for all expenditures from, and all funds
deposited into, the MWR Fund and the MWRO Funds for the
previous fiscal year. The department shall submit the report on or
before August 20, 2017, December 31, 2018,
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 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 three million dollars
($2,000,000). ($3,000,000).
(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. Code or
may hire a third-party investment broker to invest moneys from the
MWR Fund c onsistent with Section 16480.2 of the
Government Code and any regulations regarding selecting prudent,
approved investment types. 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 and in conformity with applicable
California law and regulations, including, but not limited to, the
state procurement and contracting process.
SEC. 5. Section 1048 of the Military and Veterans Code is
repealed.
SEC. 6. Section 1048 is added to the Military and Veterans Code,
to read:
1048. (a) A Morale, Welfare, and 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
allocation, including any augmentation provided by the
Secretary, from the MWR Fund.
(b) The annual allocations from the MWR Fund
Fund, including any augmentations provided by the
Secretary, 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. medical care for a member.
(2) The maintenance or major capital improvement of the
Home's 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. 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, to establish or operate a canteen
and base exchange 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)
(b) 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.
or base exchange. Any moneys derived from golf
course green fees, range ball fees, and operations of activities
specifically at the unique to each
Veterans' Home of California, Yountville,
California shall be credited to
deposited in the MWRO Fund allocation for that home.
home after appropriate state costs, fees, and rent are
deducted from the revenue received for those operations.