BILL ANALYSIS Ó
SB 543
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Date of Hearing: August 3, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 543
(Wolk) - As Amended August 1, 2016
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|Policy |Veterans Affairs |Vote:|8 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill consolidates the individual Veterans' Morale, Welfare
and Recreation (MWR) Funds at each veterans home into one
statewide fund that will be administered by the Department of
Veterans' Affairs (CalVet), but allows each home to establish a
separate account for purposes of receiving donations. SB 543
also requires CalVet to:
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1)Adopt regulations related to, among other things, administer
the Funds and the process by which veterans homes submit and
receive budget allocations.
2)Determine annually the total amount for disbursement from the
Fund.
3)Report annually to specified entities regarding moneys
deposited into the MWR Fund and expenditure of those funds.
FISCAL EFFECT:
1)Redirection of approximately $11 million from the veterans
homes to the newly created, and continuously-appropriated, MWR
Fund (Special Fund).
2)First-year costs of approximately $113,000 for implementation
and $107,000 on going, which include one position.
COMMENTS:
1)Background: Existing law authorizes the creation of a
Veterans' Morale, Welfare and Recreations Fund (MWR) at each
of the eight veterans home. The MWR Fund was established in
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1999 by SB 281 (Chesbro), when there were only two homes. The
Legislature intended to provide veteran home administrators
with an additional funding tool to provide for the general
welfare of residents beyond their medical and housing needs.
Revenue to the MWR 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
golf course green fees and range ball fees, donations,
interest earned on invested funds, and funds derived from the
estates of deceased members.
Current law also provides that 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.
Existing law also specifies how funds may be used. Home
administrators, at the direction of the Secretary of the
Department of Veteran Affairs (CalVet), have discretion over
how monies within the fund are spent. However, home
administrators have historically been granted sole authority
over decision making regarding the use of the fund.
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
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Yountville Veterans Home administrator executed two contracts
using MWR funds without consulting CalVet executive office
officials, appropriate legal counsel, or residents of the
Home.
Also, over time, there has been a great disparity in MWR Fund
balances between the homes, with Redding and West Los Angeles
having less than $100,000, and Yountville with over $6
million.
2)Purpose. SB 543 creates a single system-wide MWR Fund that
consolidates existing and future MWR moneys generated by each
of the eight veterans home campuses, and establishes
procedures for and restrictions on the budgeting and spending
of moneys in the Fund.
Analysis Prepared by:Pedro R. Reyes / APPR. / (916)
319-2081
SB 543
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