BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 543 (Wolk) - Veterans: Veterans' Home of California
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|Version: May 5, 2015 |Policy Vote: V.A. 5 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 28, 2015 |Consultant: Maureen Ortiz |
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SUSPENSE FILE.
Bill
Summary: SB 543 consolidates the individual Veterans' Morale,
Welfare and Recreation Funds at each veterans' home into one
statewide fund that will be administered by the Department of
Veterans' Affairs, but allows each home to establish a separate
account for purposes of receiving donations.
Fiscal
Impact:
Redirection of approximately $11.5 million from individual
accounts to the newly created state fund (Special Fund)
First year costs of approximately $418,000, and ongoing of
$396,000 annually to the Department of Veterans Affairs
(General Fund)
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The Department of Veterans' Affairs estimates the need for four
positions: 3 AGPA's and 1 Business Services Assistant, to
promulgate rules and regulations, administer the new fund, and
comply with the reporting requirements.
Background: Existing law authorizes the creation of a Veterans' Morale,
Welfare and Recreations Fund (MWR) at each veterans home.
Revenue to the Veterans' Morale, Welfare and Recreations Fund is
derived from many sources including proceeds from the California
Veterans Homes Fund, operations of a canteen, revenue derived
from the issuance of prisoner-of-war special license plates,
monies collected from gold course green fees and range ball
fees, donations, interest earned on invested funds, and funds
derived from the estates of deceased members.
Existing law authorizes the MWR funds to be used for the
following purposes:
a) Operating the Veterans' Home Exchange store, hobby shop,
motion picture theater, library and band, as well as any other
function that is operated for the morale, welfare, and
recreation of the members of the homes.
b) Paying for newspapers, chapel expenses, welfare and
entertainment expenses, sport activities, celebrations, and any
other activity that is for the moral, welfare, and recreation of
the veterans.
Existing law prohibits the use of the MWR funds for the
following purposes:
a) Medical or any related treatment.
b) Maintenance of the home's physical plant.
c) Any function, operation, or activity not directly related to
the morale, welfare, or recreation of the veterans.
Current law also provides that certain portions of the estates
of deceased veteran residents may be recovered by the department
for obligations owed for costs of the veterans care that are in
excess of the reimbursements made by the USDVA. Any recovered
funds are deposited in the MWR account at the home where the
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veteran had resided.
Proposed Law:
SB 543 creates the Veterans' Home Morale, Welfare, and
Recreation Fund (MWR Fund) and continuously appropriates the
money in the fund. Additionally, the bill does the following:
a) Requires the administrator of each veterans' home to
deposit the balance of funds (as of January 1, 2015) in
each homes' existing MWR Fund into the newly created
statewide MWR Fund.
b) Provides that all future moneys collected as a result of
unreimbursed costs of care determinations are state funds
and shall be deposited in the MWR Fund.
c) Requires the Department of Veterans' Affairs (CDVA) to
adopt regulations, in consultation with the resident
council at each home, which will govern the process by
which a home may make an annual request for a disbursement
as well as the process for the CDVA to review the request.
d) Requires the department to annually determine the total
amount for disbursement from the MWR Fund to the home
proportionally by each home's relative share of the total
population of the entire veterans home system; but states
that any moneys derived from golf course green fees, range
ball fees, and operations of activities specifically at the
Veterans' Home at Yountville will be credited to the MWR
Fund allocation for that home.
e) Authorizes the department to allocate an additional one
time allocation of up to 5 percent of the home's annual
disbursement for a special project if the home's
administrator shows good cause for the allocation.
f) Authorizes the department to increase the allocation
from the MWR to the Veterans' Home at Yountville, as
specified.
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g) Allows the California Veterans' Board to review any
special allocation as specified.
h) Authorizes monies in the MWR fund to be used to operate
a canteen, hobby shop, theater, library, bank, newspapers,
chapel expenses, entertainment expenses, sports activities,
celebrations, 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 from the
General Fund.
i) Prohibits the use of the funds for medical treatments,
maintenance of the home, or any function, operation, or
activity that is not directly related to the morale,
welfare, or recreation of the residents of the home.
j) Provides that appropriations from the General Fund may
not be decreased due to the department's special
disbursement of MWR funds to the Yountville Home.
aa) Requires the CDVA to report annually on deposits to, and
expenditures from, the MWR Fund.
bb) Requires the department to maintain a reserve in the MWR
Fund of $2 million.
cc) Authorizes the department to transfer funds to the
Surplus Money Investment Fund as specified.
dd) Authorizes a home administrator to enter into an
agreement with the Veterans' Home Allied Council that
authorizes the council to operate facilities and engage in
activities for the general welfare of the residents of the
home.
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Staff
Comments: There are currently eight state veterans' homes which
are located in Barstow, Chula Vista, Fresno, Lancaster, Redding,
Ventura, West Los Angeles, and Yountville with a combined total
of nearly 2,000 residents. Certain portions of the estates of
deceased veteran residents may be recovered by the department
for obligations for costs of a veteran's care that are in excess
of the reimbursements received by the U. S. Department of
Veterans Affairs. These recovered funds are not currently
returned to the state General Fund, but are instead deposited
into the MWR account at the home where the veteran resided at
death.
Other sources of revenue include:
a. The estates of deceased residents, who die without
heirs or owing money to the home for the cost of their
care;
b. Donations from taxpayers when filing their state tax
returns (this provision ended in 2006);
c. Revenues from the issuance of prisonerofwar license
plates;
d. Other private donations;
e. Interest earned from investments made with MWR Fund
moneys; and
f. Revenues from businesses operated using the MWR
Fund.
A 2013 report by the State Auditor identified inappropriate use
of the MWR funds. SB 543 will provide CDVA oversight over the
collection and disbursement of the moneys.
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Recommended
Amendments: Staff recommends deleting the continuous
appropriation in order to provide the Legislature with continued
oversight of the funds through the annual Budget Act.
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