BILL NUMBER: AB 1842	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Monning

                        FEBRUARY 22, 2012

   An act to amend Sections 1451 and 1453 of the Military and
Veterans Code, relating to veterans, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1842, as introduced, Monning. California Central Coast State
Veterans Cemetery: Endowment Fund.
   Existing law requires the Department of Veterans Affairs, in
voluntary cooperation with specified local entities, to design,
develop, and construct a state-owned and state-operated veterans
cemetery located on the site of the former Fort Ord. Existing law
creates the California Central Coast State Veterans Cemetery at Fort
Ord Endowment Fund (Endowment Fund) in the State Treasury, and
requires moneys in the fund to be allocated, upon appropriation by
the Legislature, to the department for the annual administrative and
oversight costs of the veterans cemetery, as specified, and to
generate funding through interest for the veterans cemetery. Existing
law provides that the Endowment Fund may consist of, among other
things, donations from public and private entities and fees.
   This bill would authorize the department to enter into any
financial agreement to receive cash advances in the Endowment Fund.
   Existing law requires the department, upon the determination of
specified parties that the Endowment Fund has adequate principal to
annually yield sufficient investment earnings, from the date of the
determination, to cover the annual administrative and oversight costs
over the next 10 years and to fund the estimated costs of developing
and submitting the federal State Veterans Cemetery Grant Program
application, to develop and submit a State Veterans Cemetery Grant
Program application to the United States Department of Veterans
Affairs for the establishment of a veterans cemetery. Under existing
law, if awarded, the moneys received from the federal grant program
are required to be used to reimburse the Endowment Fund for specified
costs, as well as the state's share of any other costs for the
design, construction, and equipping of the veterans cemetery.
   This bill would authorize the department to use any moneys
received from the State Veterans Cemetery Grant Program that are
transferred to the Endowment Fund for the reimbursement of those
specified costs to reimburse any cash advances made to the Endowment
Fund used for those costs to the extent allowed by grant
requirements.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1451 of the Military and Veterans Code is
amended to read:
   1451.  (a) The California Central Coast State Veterans Cemetery at
Fort Ord Endowment Fund is hereby created in the State Treasury.
Moneys in the Endowment Fund shall be allocated, upon appropriation
by the Legislature, to the department for the annual administrative
and oversight costs of the veterans cemetery, pursuant to Sections
1453 and 1454, and to generate funding through interest for the
veterans cemetery.
   (b) (1) Moneys in the fund shall first be invested with the goal
of achieving capital appreciation to create a balance sufficient to
generate ongoing earnings to cover the estimated annual oversight and
maintenance costs associated with the veterans cemetery pursuant to
Section 1453.
   (2) Upon the determination of the Controller that the Endowment
Fund balance has attained the goal established in paragraph (1),
moneys in the fund shall be invested to generate earnings to fund
annual oversight and maintenance costs associated with the veterans
cemetery.
   (c)  (1)    The Endowment Fund may consist of
donations from public and private entities, partnerships between
public and private entities, fees,  cash advances,  and
transfers from the state General Fund as may be specified by law.

   (2) The department may enter into any financial agreement to
receive cash advances in the Endowment Fund.
   (d) To the extent possible, donations made in-kind to the
Endowment Fund shall be monetized so as to offset the ongoing
administrative and oversight costs under Sections 1452 and 1453.
   (e) Earnings generated by the Endowment Fund shall be retained by
the fund.
   (f) Moneys deposited in the Endowment Fund are exempt from the
requirements of Sections 11270 through 11277 of the Government Code.
   (g) Moneys in the Endowment Fund shall be invested by the
Treasurer, after consultation with the department, in a manner that
best meets the goals of the fund.
   (h) If, through changes in state or federal law, additional
revenues are identified for the administration and oversight of the
cemetery, including increases in federal burial allowances, so that
the amount of annual revenue exceeds the annual administrative and
oversight costs, the excess revenues shall be deposited in the
Endowment Fund.
  SEC. 2.  Section 1453 of the Military and Veterans Code is amended
to read:
   1453.  (a) (1) Upon the determination of the Controller, after
consultation with the Secretary of Veterans Affairs, that the
Endowment Fund has adequate principal to annually yield sufficient
investment earnings, from the date of the determination, to cover the
annual administrative and oversight costs over the next 10 years and
to fund the estimated costs of developing and submitting the State
Veterans Cemetery Grant Program application, the department shall
develop and submit a State Veterans Cemetery Grant Program
application to the United States Department of Veterans Affairs for
the establishment of a veterans cemetery.
   (2) The Controller, upon appropriation by the Legislature, shall
transfer moneys from the Endowment Fund to the Operations Fund in an
amount equal to the estimated costs of developing and submitting the
State Veterans Cemetery Grant Program application to the United
States Department of Veterans Affairs.
   (3) Notwithstanding paragraph (1), the Controller, upon
appropriation by the Legislature, shall transfer funds from the
Endowment Fund to the Operations Fund in an amount at least equal to
the estimated costs to complete preliminary plans and working
drawings. Transfers shall be made only when sufficient funds, as
determined by the Director of Finance, exist to fully accomplish each
of these project phases.
   (4) The department shall not proceed with advertisement for
construction bids until the Endowment Fund has adequate principal to
cover annual administrative and oversight costs, in accordance with
paragraph (1).
   (b) (1) The Secretary of Veterans Affairs shall submit the State
Veterans Cemetery Grant Program application to the United States
Department of Veterans Affairs within six months of the Controller's
determination pursuant to subdivision (a). The Secretary of Veterans
Affairs is authorized to act as the official representative of the
state in connection with the State Veterans Cemetery Grant Program
application, including providing the United States Department of
Veterans Affairs throughout the application process with all
necessary assurances that additional information shall be provided
when required. The Secretary of Veterans Affairs shall have final
approval of all aspects of the cemetery design and operation.
   (2) Upon transfer of funds pursuant to paragraphs (2) and (3) of
subdivision (a), the department is authorized to proceed with all
activities necessary to support the submission of the State Veterans
Cemetery Grant Program application.
   (3) Upon the United States Department of Veterans Affairs'
certification of the grant award, the department is authorized to
proceed with construction and equipping of the veterans cemetery.
   (c)  (1)    If awarded, the moneys received from
the State Veterans Cemetery Grant Program shall be used to reimburse
the Endowment Fund for the costs of developing and submitting the
State Veterans Cemetery Grant Program application to the United
States Department of Veterans Affairs and other eligible costs, and
to fund 100 percent of costs allowed by the grant requirements, as
well as the state's share of any other costs for the design,
construction, and equipping of the veterans cemetery. 
   (2) Any moneys received from the State Veterans Cemetery Grant
Program that are transferred to the Endowment Fund for the
reimbursement of the costs specified in paragraph (1) may be used by
the department to reimburse any cash advances made to the Endowment
Fund used for those costs to the extent allowed by grant
requirements. 
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to timely utilize critical funding to allow for the
application for the federal grant moneys available under the State
Veterans Cemetery Grant Program for the establishment of the
California Central Coast State Veterans Cemetery at Fort Ord, it is
necessary for this act to take effect immediately.