BILL ANALYSIS �
AB 1842
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Date of Hearing: May 9, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1842 (Monning) - As Amended: April 10, 2012
Policy Committee: Veterans
AffairsVote: 8-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes the California Department of Veterans
Affairs (CDVA) to enter into financial agreements to receive
cash advances to the California Central Coast State Veterans
Cemetery at Fort Ord Endowment Fund (endowment fund) for the
purpose of funding initial planning and design and submitting a
grant proposal to the U.S. Department of Veterans Affairs. Any
such agreement would require review by the Department of
Finance, and specify there is no state repayment exposure.
This bill specifies that any cemetery grant funds transferred
from the U.S. DVA to the endowment fund to reimburse state
expenditures may also be used by CDVA to reimburse any cash
advances to the endowment, consistent with grant requirements,
and if certified by the State Controller that sufficient funds
remain in the endowment fund to cover ongoing state maintenance
and operating costs.
FISCAL EFFECT
No direct state cost.
Authorizing the endowment fund to accept a funding advance or
loan would help the state complete its initial planning and
application required by the federal government (at a cost of
about $2 million) for a grant that would cover plans and full
construction (an estimated $26 million). According to CDVA there
are virtually no funds in the endowment fund.
The bill explicitly states there is no liability on the part of
the state for an advance or a loan, should the federal grant
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fail to come through for whatever reason.
(The state's future fiscal exposure for a veterans' cemetery is
limited to maintenance and operational costs, which would likely
be in the range of $700,000, more than half of which would
likely be covered by burial fees, with the balance covered by
the General Fund, and endowment fund contributions.)
COMMENTS
1)Rationale . The author's intent is to enable the Fort Ord Reuse
Authority (FORA) to sell excess land, use the proceeds to
cover cemetery design and application costs, and repay itself
upon receipt of the federal cemetery grant.
2)Background . In 1991, Fort Ord was announced for closure by the
United States Base Realignment and Closure Commission. Prior
to closure, FORA set aside 204 acres for a veterans' cemetery.
Legislation enacted in 2006 created an endowment fund to
support cemetery planning and design. When the endowment is
sufficiently funded to design and plan the cemetery, CDVA can
apply to the U.S. Department of Veterans Affairs for a
cemetery grant, which will cover the costs of construction and
any planning and design work.
3)Prior Legislation .
a) AB 629 (Monning), Statutes of 2011, authorizes CDVA to
contract with the Fort Ord Reuse Authority (FORA), rather
than the Department of General Services (DGS), for design
and construction of a state-owned and operated veterans'
cemetery on the site of Fort Ord.
b) AB 1757 (Monning), Statutes of 2010, requires CDVA in
cooperation with the County of Monterey, the City of
Seaside, FORA, and surrounding counties, cities, and local
agencies, to design and construct a state-owned and
operated veterans cemetery at Ford Ord. The design and
construction of the cemetery could not move forward until a
determination was made that 100% of the funds necessary for
planning and design were raised.
c) AB 3035 (Laird), Statutes of 2006 established the
California Central Coast State Veterans Cemetery at Fort
Ord Endowment Fund for the receipt of donations of personal
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property, including cash or other gifts, to be used for the
maintenance of the veterans' cemetery.
Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081