Amended in Assembly June 22, 2016

Amended in Senate May 31, 2016

Amended in Senate April 26, 2016

Senate Bill No. 980

Introduced by Senator Nielsen

February 10, 2016

An act to amend Sections 1010, 1012, 1012.1, 1012.2, 1012.3, 1023, 1034, 1035.3, 1038, begin insert 1038.5, end insert and 1044 of, to add Sections begin insert 79.3, 79.4, end insert 1011.1, 1011.2, 1011.3, and 1011.4 to, to repeal Sections begin delete 1012.4, end delete 1012.6, 1014, 1015, 1024, 1033.2, and 1051 of, and to repeal and add begin delete Section 1011 end delete begin insert Sections 1011 and 1012.4 end insert of, the Military and Veterans Code, relating to begin delete veterans, and making an appropriation therefor. end delete begin insert veterans. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 980, as amended, Nielsen. Veterans’ homes.

Existing law provides for the establishment and operation of veterans’ homes at various sites, and provides for an administrator of each home, as specified. Existing law establishes the duties of the Department of Veterans Affairs with regard to the establishment and regulation of veterans’ homes.

This bill would revise and recast those provisions. Among other things, the bill would provide that the administrator is the senior executive appointed to oversee the operations of a veterans’ home. The bill would specify which veterans’ homes are administered by the Department of Veterans Affairs. The bill would require the Secretary of Veterans Affairs to adopt uniform statewide policies and procedures, by regulation, for the operation of those veterans’ homes, as specified. The bill would require the secretary to implement a statewide electronic medical record system for veterans’ homes by a specified date. The bill would require the secretary to annually report to the Senate and Assembly Committees on Veterans Affairs, as specified.

Existing law establishes the criteria for admission to a veterans’ home, as specified. Existing law establishes the fees and charges for residency, as established by each administrator of a home, and requires each administrator to adopt rules and regulations for the administration of the homes.

This bill would instead require that the fees and charges be established by the secretary, rather than by each administrator, and that the secretary adopt rules and regulations that apply to the homes and the criteria for admission. The bill would authorize the secretary to establish needs-based criteria for admission to veterans’ begin delete homes, end delete begin insert homes and to prioritize admission for veterans with service- end insert begin insert related disabilities, end insert as specified.

Existing law authorizes a resident spouse to continue his or her residency after a veteran spouse’s death.

This bill would require a resident spouse who continues residency after a veteran spouse’s death to continue to pay all applicable fees and to comply with all department begin delete regulations. end delete begin insert regulations, and would expand those provisions to include domestic partners. end insert

Existing law authorizes the department to investigate a veteran’s financial status for admission purposes.

This bill would further authorize the department to determine begin delete the total worth of any member’s property or assets for purposes of admission, including to validate income levels for purposes of establishing fees. end delete begin insert a resident’s or applicant’s income or suitability for residence at a veteran end insert begin insert s end insert begin insert ’ home and would provide that providing false information or failure to pay fees is grounds for financial penalties or discharge from a veteran end insert begin insert s end insert begin insert ’ home. end insert

Existing law requires 100% of the moneys received by a veterans’ home from veterans receiving federal aid to be placed to the credit of the home to augment the current appropriation for the support of the home.

This bill would delete that begin delete provision, and would instead require moneys received by a veterans’ home from those veterans to be deposited into the Federal Trust Fund, a continuously appropriated fund, to be used for the operating costs of the home. Because the moneys would be continuously appropriated for those purposes, the bill would make an appropriation. end delete begin insert provision. end insert

Existing law requires members of a veterans’ home to pay fees and charges as determined by the department, subject to a specified fee schedule.

This bill would begin delete prohibit the fees paid by a member from exceeding the average costs of care for the level of care in which the member currently resides. end delete begin insert provide that failure to pay fees is cause for the administrator to refer the resident to collections or dismiss the resident from the home. end insert

Existing law, upon the death of a veteran in a home, requires any moneys not in excess of $3,000 held by the home for the veteran to be paid to the home’s Morale, Welfare, and Recreation Fund, if no will or heir or other family member is discovered within a specified number of years after his or her death.

This bill would increase the amount that may be transferred to $15,000.

Existing law, upon the departure of a veteran from a home, requires any moneys not in excess of $3,000 held by the home for the veteran to be paid to the home’s Morale, Welfare, and Recreation Fund, if the money is not requested by the veteran within a specified number of years after his or her departure.

This bill would increase the amount that may be transferred to $5,000.

This bill would make other conforming changes and would delete obsolete provisions and references, as specified.

Vote: majority. Appropriation:  begin delete yes end delete begin insert no end insert . Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 79.3 is added to the end insert begin insert Military and Veterans
Code end insert begin insert , to read: end insert

begin insert

begin insert 79.3. end insert   

(a) Notwithstanding any other law, the department may
adopt, amend, or repeal regulations concerning the administration
and operation of the Veterans’ Home of California. Except as
otherwise provided, these regulations shall be adopted pursuant
to the Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code).

(b) The department may adopt, amend, and repeal emergency
regulations concerning the administration and operation of the
Veterans’ Home of California in compliance with Section 11346.1
of the Government Code. However, if special circumstances, as
defined in subdivision (c), are present, then those regulations shall
not be subject to the requirements regarding findings of emergency
in paragraph (2) of subdivision (b) of Section 11346.1 of the
Government Code.

(c) Special circumstances shall be deemed to exist if the
Secretary of Veterans Affairs states in writing that the adoption,
amendment, or repeal is necessary for one or more of the following
reasons:

(1) The possible loss or delay in the receipt of federal, state, or
local funding.

(2) The need to maintain licensing or certification by any state
or federal agency for any Veterans’ Home of California facility
or program.

(3) The need to protect against a serious and immediate threat
to the health or safety of residents or staff in one or more of the
facilities of the Veterans’ Home of California.

(4) The urgent need to comply immediately with
recommendations of the Department of Finance or the California
State Auditor.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 79.4 is added to the end insert begin insert Military and Veterans
Code end insert begin insert , to read: end insert

begin insert

begin insert 79.4. end insert   

(a) The department shall do all of the following
concerning the operation and administration of the veterans’
homes:

(1) Take the necessary steps to ensure that all medical or other
facilities under its jurisdiction satisfy all applicable federal and
state licensing, certification, and other approval requirements,
including, but not limited to, the requirements of the United States
Department of Veterans Affairs, the federal Centers for Medicare
and Medicaid Services, the State Department of Public Health,
the State Department of Social Services, and the California State
Board of Pharmacy, including preparation of plans of correction
as required.

(2) Develop and maintain clinical policies and procedures,
including both of the following:

(A) Community standards for best clinical practices, including,
but not limited to, practices recommended by the federal Centers
for Disease Control and Prevention and the federal Centers for
Medicare and Medicaid Services.

(B) The appropriate clinical standard of practice.

(3) Adopt fire and life safety policies and procedures consistent
with the requirements of the State Fire Marshal and other
applicable regulatory and licensing agencies.

(4) Adopt earthquake and environmental protection policies
and procedures.

(b) The department may adopt regulations to implement this
section. The adoption, amendment, or repeal of a regulation
authorized by this section is hereby exempted from the rulemaking
provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code).

end insert

begin delete SECTION 1. end delete

begin insert SEC. 3. end insert   

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

1010.  

As used in this chapter, the following terms have the
following meanings:

(a) “Administrator” means the senior executive appointed to
oversee the operations of a home.

(b) “Department” means the Department of Veterans Affairs.

(c) “Deputy secretary” means the Deputy Secretary of Veterans

begin delete Homes. end delete begin insert Affairs. end insert

(d) “Director” or “secretary” means the Secretary of Veterans
Affairs.

(e) “Home” means any facility operated by the department for
the provision of long-term care, assisted living, adult day health,
independent living, or other health care services to eligible
veterans.

(f) “Member” means any veteran or nonveteran spouse begin insert or
domestic partner end insert who has been admitted to residency at any home.

(g) “Veteran” means a person who is eligible for benefits under
this chapter.

begin delete SEC. 2. end delete

begin insert SEC. 4. end insert   

Section 1011 of the Military and Veterans Code is
repealed.

begin delete SEC. 3. end delete

begin insert SEC. 5. end insert   

Section 1011 is added to the Military and Veterans
Code, to read:

1011.  

There is in the department a Veterans’ Home of
California, which the department shall administer. The Veterans’
Home of California is a system comprising the following subsidiary
home locations:

(a) The Veterans’ Home of California, Yountville, in Napa
County.

(b) The Veterans’ Home of California, Barstow, in San
Bernardino County.

(c) The Veterans’ Home of California, Chula Vista, in San Diego
County.

(d) The Veterans’ Home of California, West Los Angeles, in
Los Angeles County.

(e) The Veterans’ Home of California, Lancaster, in Los Angeles
County.

(f) The Veterans’ Home of California, Ventura, in Santa Barbara
County.

(g) The Veterans’ Home of California, Fresno, in Fresno County.

(h) The Veterans’ Home of California, Redding, in Shasta
County.

begin delete SEC. 4. end delete

begin insert SEC. 6. end insert   

Section 1011.1 is added to the Military and Veterans
Code, to read:

1011.1.  

(a) The secretary shall adopt uniform statewide policies
and procedures, by regulation, in accordance with the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code), for the operation of the homes. The policies and procedures
shall be in conformity, as nearly as possible, begin delete to the rules and
regulations of the end delete begin insert with all relevant licensing and certification
agencies, including, but not limited to, the end insert United States
Department of Veterans begin delete Affairs for their facilities and end delete begin insert Affairs, the
federal Centers for Medicare and Medicaid Services, the State
Department of Social Services, and the State Department of Public
Health end insert to ensure that adequate care and a homelike environment
is provided in a cost-effective manner for members of the homes.

(b) These policies and procedures shall implement the
requirements to obtain and maintain required licenses and
accreditations, as well as to ensure members in all homes
throughout the state, to the extent possible, receive equitable
treatment, benefits, and services, and to ensure that high-quality
care is provided.

(c) These policies and procedures shall include, but are not
limited to, all of the following:

(1) The admission of applicants.

(2) The conditions upon which members may enter and remain
in the home.

(3) Resident disciplinary procedures.

(4) Quality of care standards.

(5) An internal quality of care review process.

(6) Delineating which services will be provided to members by
the state.

(7) Setting staffing standards.

(8) Staff training requirements.

begin delete

(9) Establishment and operation of allied councils.

end delete

begin insert (9) end insert begin insert   end insert begin insert Clarifying the relationship between the department and
allied councils. end insert

(10) Any other policies and procedures to ensure the safe and
effective operation of the homes.

begin delete SEC. 5. end delete

begin insert SEC. 7. end insert   

Section 1011.2 is added to the Military and Veterans
Code, to read:

1011.2.  

(a) There shall be an administrator for each home,
who shall be recommended by the secretary and appointed by the
Governor, and who shall be located at that home. The salary for
each administrator shall be subject to the approval of the
Department of Human Resources.

(b) The administrator shall be responsible for ensuring
compliance with all state and federal statutes and regulations
related to the operation of the home and for implementation of all
statewide policies and procedures, as specified in Section 1011.1.

begin delete SEC. 6. end delete

begin insert SEC. 8. end insert   

Section 1011.3 is added to the Military and Veterans
Code, to read:

1011.3.  

begin delete

The

end delete begin insert

(a) It is the intent of the Legislature that the department submit
the report required pursuant to this section at a level of detail that
will provide the Legislature and the public with indicators of the
quality of both the health care and the management of facilities
of the Veterans’ Home of California without compromising
members’ privacy while still in compliance with applicable law
and regulation. By submitting consistent indicators over the long
term, the Legislature will be able to readily see significant changes
and more effectively perform its oversight functions.

end insert

begin insert (b) end insert begin insert   end insert begin insert The end insert secretary shall make an annual report to the Senate and
Assembly Committees on Veterans Affairs by begin delete January 1 of each
year, beginning January 1, 2018, reporting on end delete begin insert April 1 of each year,
beginning April 1, 2018. This report shall be in compliance with
the federal Health Insurance Portability and Accountability Act
(HIPAA) (Public Law 104-191) and all relevant laws and
regulations related to patient privacy or other protected
information. This report shall reflect end insert significant begin delete veterans end delete begin insert veterans end insert begin insert ’ end insert
home-related performance issues, which shall include, but are not
limited to, all of the following:

begin delete

(a)

end delete

begin insert (1) end insert  Current census and census changes since last report.

begin delete

(b)

end delete

begin insert (2) end insert  Any major changes to home policy and the impact of those
changes on the residents.

begin delete

(c)

end delete

begin insert (3) end insert  Changes in provision of care, including licensure changes.

begin delete

(d)

end delete

begin insert (4) end insert  Significant events that impacted the operations of the home.

begin delete

(e) Results of regulatory agency inspections or reviews and
corrective action taken to address findings.

end delete begin insert

(5) Copies of annual licensing survey records.

end insert begin delete

(f)

end delete

begin insert (6) end insert  Significant patient care complaints, results of any
investigations into those complaints, and any corrective action
taken to address validated complaints.

begin delete

(g) Results of internal quality of care reviews.

end delete begin delete

(h) A comparison of veterans home quality of care metrics to
industry averages.

end delete begin insert

(7) Copies of available data from licensing agencies comparing
veterans’ home quality of care metrics to industry averages.

end insert begin delete

(i)

end delete

begin insert (8) end insert  Other significant issues that may be of interest to the
committee members.

begin delete SEC. 7. end delete

begin insert SEC. 9. end insert   

Section 1011.4 is added to the Military and Veterans
Code, to read:

1011.4.  

(a) On or before January 1, begin delete 2018, end delete begin insert 2019, end insert the secretary
shall implement an electronic medical record system. The usage
of the electronic medical record system shall be standardized in
all homes.

(b) The electronic medical record system required by this
section, and all transactions made in that system, shall comply
with the Confidentiality of Medical Information Act (Part 2.6
(commencing with Section 56) of Division 1 of the Civil Code),
Chapter 1 (commencing with Section 123100) of Part 1 of Division
106 of the Health and Safety Code, the Information Practices Act
of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8
of Part 4 of Division 3 of the Civil Code), the federal Health
Insurance Portability and Accountability Act begin delete (HIPAA)(Public end delete
begin insert (HIPAA) (Public end insert Law 104-191), the federal Health Information
Technology for Economic and Clinical Health Act (HITECH)
(Public Law 111-005), and all corresponding regulations relating
to privacy and security.

begin delete SEC. 8. end delete

begin insert SEC. 10. end insert   

Section 1012 of the Military and Veterans Code is
amended to read:

1012.  

(a) The home is for aged and disabled persons who
served in the Armed Forces of the United States, who were
discharged or released from active duty under honorable conditions
from service, who are eligible for hospitalization or domiciliary
care in a veterans’ facility in accordance with the rules and
regulations of the United States Department of Veterans Affairs,
begin delete are unable to pay for necessary domiciliary and licensed long-term
care outside the home, end delete and who are bona fide residents of this state
at the time of application; and for the spouses of these persons if
all of the following conditions, as are applicable, are satisfied:

(1) Space is available.

(2) Joint residency will be in the best interests of the home
member, as determined by the administrator.

(3) The spouse is a bona fide resident of this state at the time
of application for admission to the home and either is married to,
and has resided with, the home member for at least one year, or is
the widow or widower of a recipient of the Medal of Honor or a
former prisoner of war (POW).

(4) The home member and spouse agree to pay the fees and
charges for joint residency, or for a widow or widower, that the
secretary may establish.

(b) (1) Veterans who qualify for benefits under this chapter due
to service during a time of war shall be given priority over veterans
who qualify due to service during a time of peace.

(2) Veterans who qualify for benefits under this chapter who
are recipients of the Medal of Honor or who were prisoners of war
(POWs) shall be given priority over all other qualified veterans,
regardless of the level of care required.

begin delete

(3)

end delete begin insert

(3) Veterans who qualify for benefits under this chapter who
have disability ratings that have been rated by the United States
Department of Veterans Affairs as being service-connected, as
determined under Part 4 of Title 38 of the Code of Federal
Regulations, may be given priority over other veterans.

end insert

begin insert (4) end insert  The secretary may establish needs-based criteria for
admission to the homes, and any veteran meeting those criteria
shall be given priority over veterans who begin insert do not qualify for
prioritization under paragraph (2) or (3) and end insert can afford to provide
for their own care elsewhere.

(c) A resident spouse begin insert or domestic partner end insert may continue
residence after the veteran’s death, so long as he or she continues
to pay all applicable fees and comply with the department’s
policies, procedures, and regulations.

(d) The property of the home shall be used for this purpose.

begin delete SEC. 9. end delete

begin insert SEC. 11. end insert   

Section 1012.1 of the Military and Veterans Code is
amended to read:

1012.1.  

begin insert (a) end insert begin insert   end insert Prior to the admission of begin delete a veteran end delete begin insert an applicant end insert
as a member of begin delete the end delete begin insert a veteran end insert begin insert s’ end insert

home, and at any time during which a begin delete veteran end delete begin insert person end insert is a member
of begin delete the end delete begin insert a veterans end insert begin insert ’ end insert home, the department may investigate any
begin insert applicant’s or end insert member’s financial status begin insert and personal background end insert
to determine begin delete the total value of the property and assets of any
veteran applying for admission to the home, or to ensure that the
member is unable to pay for necessary care outside of the home,
or to validate income levels for the purposes of establishing fees. end delete
begin insert the member’s or applicant’s income and suitability for residence
at a veterans’ home. end insert The department may contract with any other
state begin insert or federal end insert agency begin insert or private entity end insert to conduct such an
investigation begin delete in end delete begin insert on end insert its behalf.

begin insert

(b) Providing false financial and other information by an
applicant or member or nonpayment of fees may be grounds for
financial penalties or denial of admission to, or discharge from,
a veterans’ home.

end insert

begin delete SEC. 10. end delete

begin insert SEC. 12. end insert   

Section 1012.2 of the Military and Veterans Code is
amended to read:

1012.2.  

(a)  begin delete (1) end delete begin delete   end delete Notwithstanding any other law, any member
of the home who is receiving an aid and attendance allowance
from the United States Department of Veterans Affairs begin delete and who
has no dependent spouse, child, grandchild, father, or mother end delete shall
pay to the home an amount equal to that allowance in all levels of
care excluding domiciliary.

begin delete

(2) Paragraph (1)

end delete

begin insert (b) end insert begin insert   end insert begin insert Subdivision (a) end insert shall not apply to a member of the home
who is in intermediate care or skilled nursing care and has a
disability that has been rated by the United States Department of
Veterans Affairs as being 70 percent or more service-connected,
as determined under Part 4 of Title 38 of the Code of Federal
Regulations.

begin delete

(b) Moneys received by a home under this section shall be
deposited into the Federal Trust Fund and shall be used for the
operating costs of the home.

end delete

begin delete SEC. 11. end delete

begin insert SEC. 13. end insert   

Section 1012.3 of the Military and Veterans Code is
amended to read:

1012.3.  

(a) Members of the home, including members who
are nonveteran begin delete spouses, end delete begin insert spouses or domestic partners, end insert shall pay
fees and charges as determined by the begin delete department, end delete begin insert department to
cover room and board, end insert except that the total of the individual
member’s fees and charges for any fiscal year shall not be greater
than as set forth in the following schedule:

(1) Forty-seven and one-half percent of the member’s annual
income for domiciliary care.

(2) Fifty-five percent of the member’s annual income for
residential care for the elderly or assisted living.

(3) Sixty-five percent of the member’s annual income for
intermediate care.

(4) Seventy percent of the member’s annual income for skilled
nursing care.

(b) Subdivision (a) shall not apply to a member of the home
who is in intermediate care or skilled nursing care and has a
disability that has been rated by the United States Department of
Veterans Affairs as being 70 percent or more service-connected,
as determined under Part 4 of Title 38 of the Code of Federal
Regulations and whose related payments made under Section 51.41
of Title 38 of the Code of Federal Regulations are considered by
the United States Department of Veterans Affairs as payment in
full for the member’s care.

begin delete

(c) Fees paid by a member shall not exceed the average cost of
care for the level of care in which the member currently resides.

end delete begin insert

(c) Subdivision (a) shall not apply to penalties for late fee
payment.

end insert begin insert

(d) Failure to pay the required fees shall be cause for the
administrator to refer the resident to collections or dismiss the
resident from the home.

end insert begin insert

(e) Retroactive benefit payments from the United States
Department of Veterans Affairs shall be subject to subdivision (a)
for the period of the time covered by the benefit award that the
veteran resided at a veterans’ home. The veterans’ home shall
recompute the fees and charges previously determined for the
benefit period, and the resident shall be billed for the full amount
of fees and charges due for the benefit period.

end insert

begin delete SEC. 12. end delete

begin insert SEC. 14. end insert   

Section 1012.4 of the Military and Veterans Code is
repealed.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 1012.4 is added to the end insert begin insert Military and Veterans
Code end insert begin insert , to read: end insert

begin insert

begin insert 1012.4. end insert   

Notwithstanding Section 1012, the department may
arrange by contract or any other form of agreement with the United
States Department of Veterans Affairs to leverage federal contracts
for the procurement of goods and services.

end insert

begin delete SEC. 13. end delete

begin insert SEC. 16. end insert   

Section 1012.6 of the Military and Veterans Code is
repealed.

begin delete SEC. 14. end delete

begin insert SEC. 17. end insert   

Section 1014 of the Military and Veterans Code is
repealed.

begin delete SEC. 15. end delete

begin insert SEC. 18. end insert   

Section 1015 of the Military and Veterans Code is
repealed.

begin delete SEC. 16. end delete

begin insert SEC. 19. end insert   

Section 1023 of the Military and Veterans Code is
amended to read:

1023.  

(a) The department may sue and be sued in any of the
courts of this state. All property held by the department for the
home shall be held in trust for the state and for the use and benefit
of the home. The secretary shall adopt rules and regulations for
the administration of the homes conforming as nearly as possible
to the rules and regulations of the United States Department of
Veterans Affairs and those of other states with veterans’ homes.

(b) The Director of General Services may lease or let any real
property held by the department for the home, and not needed for
any direct or immediate purpose of the home, to any entity or
person upon terms and conditions determined to be in the best
interests of the home. All moneys received in connection therewith
shall be deposited in the General Fund as a reimbursement for
operating costs of the home.

begin delete SEC. 17. end delete

begin insert SEC. 20. end insert   

Section 1024 of the Military and Veterans Code is
repealed.

begin delete SEC. 18. end delete

begin insert SEC. 21. end insert   

Section 1033.2 of the Military and Veterans Code is
repealed.

begin delete SEC. 19. end delete

begin insert SEC. 22. end insert   

Section 1034 of the Military and Veterans Code is
amended to read:

1034.  

Except money received from this state for disbursement,
all moneys received by the home, or by any officer of the home,
including pension and other moneys belonging to veterans and
other trust moneys, shall be immediately paid to the administrator
of the home. On or before the 10th day of each month, the
administrator of the home shall forward to the Treasurer all moneys
in his or her possession, except pension and other moneys
belonging to veterans, trust moneys, the post funds, the emergency
fund, and donations made to each home, hereinafter mentioned,
together with a statement of the sources from which the moneys
have been received. The moneys shall be deposited by the Treasurer
to the credit of the General Fund; provided, however, that
abatements of support expenditures shall be credited to the support
appropriation current at the time of collection.

begin delete SEC. 20. end delete

begin insert SEC. 23. end insert   

Section 1035.3 of the Military and Veterans Code is
amended to read:

1035.3.  

(a) If no will or heir is discovered within two years
after the death of the veteran, any moneys not exceeding fifteen
thousand dollars ($15,000) held by the home pursuant to Section
1035 and not paid or otherwise delivered to the heir or heirs or
pursuant to the will of the deceased veteran, or otherwise disbursed
by the administrator pursuant to Section 1035, shall be paid to the
Morale, Welfare, and Recreation Fund.

If no will or heir is discovered within five years after the death
of the veteran, any moneys exceeding fifteen thousand dollars
($15,000) held by the home pursuant to Section 1035 and not paid
or otherwise delivered to the heir or heirs or pursuant to the will
of the deceased veteran, or otherwise disbursed by the administrator
pursuant to Section 1035, shall be paid to the Morale, Welfare,
and Recreation Fund.

This subdivision applies only to veterans becoming members of
the home on or after January 1, 1984.

(b) If no spouse, child, grandchild, or father or mother is
discovered within two years after the death of the veteran, any
moneys not exceeding fifteen thousand dollars ($15,000) held by
the home pursuant to Section 1035 and not paid or otherwise
delivered to the spouse, children, grandchildren, or father or
mother, or otherwise disbursed by the administrator pursuant to
Section 1035, shall be paid to the Morale, Welfare, and Recreation
Fund.

If no spouse, child, grandchild, or father or mother is discovered
within five years after the death of the veteran, any moneys
exceeding fifteen thousand dollars ($15,000) held by the home
pursuant to Section 1035 and not paid or otherwise delivered to
the spouse, children, grandchildren, or father or mother, or
otherwise disbursed by the administrator pursuant to Section 1035,
shall be paid to the Morale, Welfare, and Recreation Fund.

This subdivision applies only to veterans who have become
members of the home prior to January 1, 1984.

begin delete SEC. 21. end delete

begin insert SEC. 24. end insert   

Section 1038 of the Military and Veterans Code is
amended to read:

1038.  

All money deposited with the home for a veteran shall
be paid to him or her on demand, upon his or her discharge or
voluntary departure from the home. If the money is not so
demanded at the time of his or her discharge or departure or within
a period of two years thereafter, if the amount does not exceed
five thousand dollars ($5,000), or within a period of five years
thereafter, if the amount exceeds five thousand dollars ($5,000)
either by the veteran, or, in the event of the veteran’s death after
his or her discharge or departure, by the veteran’s heirs, devisees,
legatees, or qualified executor or administrator of his or her estate,
the money shall be paid to the Morale, Welfare, and Recreation
Fund.

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 1038.5 of the end insert begin insert Military and Veterans Code end insert begin insert is
amended to read: end insert

1038.5.  

Any money deposited with the home by a begin delete veteran end delete
begin insert member end insert shall be credited with begin delete interest at no more than the State
Monetary Investment Fund rate, less 0.75 percent, end delete begin insert interest,
pursuant to Section 51.60 of Title 38 and Section 483.10 of Title
42 of the Code of Federal Regulations, end insert and shall be paid to the
begin delete veteran end delete begin insert member end insert or to his or her heirs, devisees, legatees, or the
qualified executor or the administrator of his or her estate pursuant
to Section 1037 or Section 1038.

begin delete SEC. 22. end delete

begin insert SEC. 26. end insert   

Section 1044 of the Military and Veterans Code is
amended to read:

1044.  

The secretary may adopt rules and regulations governing
the admission of applicants and may prescribe the conditions upon
which they may enter and remain with the home.

begin delete SEC. 23. end delete

begin insert SEC. 27. end insert   

Section 1051 of the Military and Veterans Code is
repealed.