BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 543|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 543
Author: Wolk (D)
Amended: 5/5/15
Vote: 21
SENATE VETERANS AFFAIRS COMMITTEE: 5-0, 4/28/15
AYES: Nielsen, Hueso, Allen, Nguyen, Roth
SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza, Nielsen
NO VOTE RECORDED: Bates
SUBJECT: Veterans: Veterans' Home of California
SOURCE: Author
DIGEST: With regard to the Veterans Home of California system,
this bill creates a single system-wide Morale, Welfare, and
Recreation Fund (MWR Fund) that consolidates existing and future
MWR moneys generated by individual veterans home campuses, and
establishes procedures for and restrictions on the budgeting and
spending of moneys in the Fund.
ANALYSIS:
Existing law:
1) Establishes the Veterans Home of California within the
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Department of Veterans Affairs (CalVet), and provides for its
operation at various campuses in order to provide housing for
aged and disabled veterans and their nonveteran spouses, who
meet eligibility requirements.
2) Requires that the administrator of each home campus maintain
an MWR Fund that shall be used - at the discretion of the
administrator and subject to the approval of the secretary -
to provide for the general welfare of the resident veterans.
3) Provides that CalVet may recover, from the estates of
deceased veteran residents, certain portions of obligations
owed to CalVet, including costs of the veteran's care in
excess of federal reimbursement. Provides that those
recovered funds be deposited into the MWR Fund of the
deceased veteran's last home of residence.
4) Specifies authorizations and restrictions on how MWR Fund
moneys may be expended.
This bill:
1) Requires the administrator of each veterans' home to deposit
the balance of funds (as of January 1, 2015) in each homes'
existing local MWR Fund into the newly created statewide
consolidated MWR Fund.
2) Provides that all future moneys collected as a result of
unreimbursed costs of care determinations are state funds and
shall be deposited into the consolidated MWR Fund.
3) Requires CalVet 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 CalVet to review the
request.
4) Requires CalVet to annually determine the total amount for
disbursement from the consolidated 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
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allocation for that home.
5) Authorizes CalVet to allocate an additional one-time
allocation of up to five percent of the home's annual
disbursement for a special project if the home's
administrator shows good cause for the allocation.
6) Authorizes CalVet to increase the allocation from the
consolidated MWR to the Veterans' Home at Yountville, as
specified.
7) Allows the California Veterans' Board to review any special
allocation as specified.
8) Authorizes monies in the consolidated 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.
9) Prohibits the use of MWR 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.
10)Provides that appropriations from the General Fund may not
be decreased due to CalVet's special disbursement of MWR
funds to the Yountville Home.
11)Requires CalVet to report annually on deposits to, and
expenditures from, the consolidated MWR Fund.
12)Requires CalVet to maintain a reserve in the consolidated
MWR Fund of $2 million.
13)Authorizes CalVet to transfer funds to the Surplus Money
Investment Fund as specified.
14)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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Background
CalVet's Veterans Homes Division provides rehabilitative,
residential medical care and services in a homelike environment
for all veterans (and eligible veteran spouses) residing in the
State's eight veterans homes, which are located in Barstow,
Chula Vista, Fresno, Lancaster. Redding, Ventura, West Los
Angeles, Redding, and Yountville. As of early 2015, nearly 2,000
members resided in these veterans homes.
Morale, Welfare and Recreation Funds
Existing law:
1)Authorizes MWR funds to be used for, but not be limited to,
the following:
a) Operating the Veterans' Home Exchange store, hobby
shop, motion picture theater, library, and band, and any
other function that is operated for the morale, welfare,
and recreation of the veterans;
b) Paying for newspapers, chapel expenses, welfare and
entertainment expenses, sport activities, celebrations,
and any other activity that is for the morale, welfare,
and recreation of the veterans.
2)Prohibits MWR funds from being used for: (1) medical or any
related treatment; (2) maintenance of the home's physical
plant; or (3) any function, operation, or activity not
directly related to the morale, welfare, or recreation of the
veterans.
3)Provides that certain portions of the estates of deceased
veteran residents may be recovered by CalVet for obligations
owed to CalVet, including costs of a veterans care in excess
of the reimbursement for that care made by the United States
Department of Veterans Affairs (USDVA).
4)Requires that residents, upon admission to the home and
monthly thereafter, be informed about these provisions to
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recover unreimbursed costs of care.
5)Provides that the recovered funds are not returned to the
State General Fund, but, instead, are deposited into the MWR
fund account for the campus at which the veteran resided at
the time of death.
The existing local MWR funds obtain funding from several
sources, including:
" The estates of deceased residents, who die without heirs or
owing money to the home for the cost of their care;
" Donations from taxpayers when filing their state tax returns;
" Revenues from the issuance of prisoner-of-war license plates;
" Other donations;
" Interest earned from investments made with MWR Fund moneys;
and
" Revenues from businesses operated using the MWR Fund.
Although Military and Veterans Code Section 1047 allows a home
administrator to spend MWR moneys for the benefit of the
residents of the home, other state laws impose requirements on
the manner in which this is done, particularly when it entails
leasing state-owned land.
In October 2013 the California State Auditor released an
investigative report (i2011-0837) entitled, Wastefulness,
Failure to Comply With State Contracting Requirements, and
Inexcusable Neglect of Duty. The report revealed that over a
two-year period from January 2010 to December 2011, the
Yountville Veterans Home administrator executed two contracts
using MWR funds without consulting CalVet executive office
officials, appropriate legal counsel, or residents of the Home.
Related/Prior Legislation
AB 1580 (Yamada, 2014) would have created a consolidated
statewide MWR Fund and instituted review measures and controls
on the expenditure of MWR funds. (Inactive File, Senate Third
Reading.)
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AB 1739 (Allen, Chapter 95, Statutes of 2012) allows the
administrator of a state veterans' home to enter into an
agreement with the home's allied council to authorize the
council to operate MWR Fund activities such as a hobby shop,
movie theater, library, band, and to pay for such things as
newspapers, entertainment, sports activities, celebrations and
other activities for the benefit of the veterans.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee, the fiscal
impact is:
" 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)
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.
SUPPORT: (Verified5/27/15)
None received
OPPOSITION: (Verified5/27/15)
None received
Prepared by:Wade Cooper Teasdale / V.A. / (916) 651-1503
5/31/15 12:16:29
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