BILL ANALYSIS                                                                                                                                                                                                    �






                        SENATE COMMITTEE ON VETERANS AFFAIRS
                              Senator Ben Hueso, Chair
                                               


          BILL NO:  AB 1453                  HEARING DATE: 6/24/14
          AUTHOR:   Quirk-Silva
          VERSION:  6/19/14
          FISCAL:   Yes
          VOTE:     Majority




                                        SUBJECT  
          
          Southern California Veterans Cemetery.



                                      DESCRIPTION  
           
          Existing law:

           1.Requires the California Department of Veterans Affairs  
            (CalVet) - in voluntary cooperation with the Monterey County  
            Board of Supervisors, City of Seaside, Fort Ord Reuse  
            Authority, and surrounding counties, cities, and local  
            agencies - to design, develop, and construct the state-owned  
            and state-operated Central Coast Veterans Cemetery, to be  
            located on the former Fort Ord Army post.

          2.Requires CalVet - in voluntary cooperation with the Shasta  
            County Board of Supervisors and the boards of supervisors of  
            specified northern California counties - to design, develop,  
            and construct a state-owned and state-operated Northern  
            California Veterans Cemetery.

          3.Federal law authorizes the United States Department of  
            Veterans Affairs (VA) to make a financial grant to any state  
            for the purpose of establishing, expanding, or improving a  
            veterans' cemetery owned by the state and operating and  
            maintaining a veterans' cemetery.

           
          This bill:










           Requires CalVet - in voluntary cooperation with local government  
          entities in Orange County - to design, develop, construct, and  
          equip the state-owned and state-operated Southern California  
          Veterans Cemetery.








          Specifically, this bill: 

          1.Creates the Southern California Veterans Cemetery Master  
            Development Fund (Development Fund), a continuously  
            appropriated fund, and would require all moneys received for  
            the design, development, construction, and equipment of the  
            cemetery to be deposited in this fund. 

          2.Creates the Southern California Veterans Cemetery Perpetual  
            Maintenance Fund (Maintenance Fund) and would direct all  
            moneys received for the maintenance of the cemetery, including  
            those moneys received for the interment of a spouse or child,  
            to be deposited in this fund.

          3.Makes proposals for the construction, placement, or donation  
            of monuments and memorials to the cemetery subject to review  
            by a specified advisory committee and subject to final  
            approval by the Secretary.

          4.Authorizes the cemetery administrator to accept donations of  
            personal property to be used for the maintenance,  
            beautification, or repair of the cemetery. Requires cash  
            donations to be deposited into the Southern California  
            Veterans Cemetery Donations Fund; a continuously appropriated  
            fund created by this bill, and would require the cash  
            donations to be expended for the maintenance, beautification,  
            and repair of the cemetery, as specified. By creating a  
            continuously appropriated fund, the bill would make an  
            appropriation.
          
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          5.Declares the Legislature's intent to appropriate funds in the  
            annual Budget Act to support CalVet in carrying out the  
            provisions of this bill. Specifies that if no appropriation is  
            made for these purposes, CalVet would not be required to  
            comply with the provisions of this bill. 

          6.Requires CalVet to apply to the Veterans Cemetery Grants  
            Program administered by the federal Department of Veterans  
            Affairs for a grant of not more than an unspecified amount,  
            which amount represents 100% of the estimated cost for  
            designing, developing, constructing, and equipping the  
            cemetery.

          7.Declares the Legislature's intent to prohibit the expenditure  
            of money appropriated to CalVet until that department has  
            received written approval of the grant request and a  
            commitment from the federal Grants Program that the funds  
            appropriated under the grant are available for expenditure by  
            the state, except as specified.

          8.Extends eligibility for interment in the cemetery to all  
            honorably discharged veterans and their spouses and children  
            to the extent provided by federal law and regulation.

          9.Requires CalVet to establish a fee to be charged for interment  
            of veteran spouses and children. 






                                           

                                     BACKGROUND  
          
           National veterans cemeteries
           The federal VA's National Cemetery Administration maintains 131  
          national veterans cemeteries in 39 states and Puerto Rico. Nine  
          are located in California as follows: 

          
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                  Southern California  : Fort Rosecrans (San Diego), Miramar  
               (San Diego), Los Angeles, and Riverside national  
               cemeteries.

                  Central California  : Bakersfield, San Joaquin Valley  
               (Santa Nella), and Golden Gate (San Bruno), and San  
               Francisco (Presidio of San Francisco) national cemeteries.

                  Northern California  : Sacramento Valley National Cemetery  
               (Dixon).

           State veterans cemeteries
           Recognizing that the national cemetery system leaves certain  
          areas inadequately served, the federal government in 1978  
          established the federal VA's Cemetery Grants Program to help  
          create state-owned and state-operated veterans cemeteries to  
          meet that need. In a cost-saving approach, the federal  
          government offers to build state cemeteries, but then let states  
          pay the maintenance costs in perpetuity. This approach was used  
          successfully with California's first state veterans cemetery,  
          the Northern California Veterans Cemetery (NCVC) near Redding  
          dedicated in November 2005. The California Central Coast  
          Veterans Cemetery (CCCVC) at the former Fort Ord -will be the  
          second state cemetery under  the federal Grants Program. 

          [The state's historic Yountville Veterans Cemetery was funded by  
          an earlier process. It is located on 11 acres in the northwest  
          corner of the Yountville Veterans Home and currently accepts  
          interments only from among the Veteran Home's residents and  
          their eligible dependents.]

          Under the Grants Program, the federal government will reimburse  
          up to 100% of the cost of establishing, expanding, or improving  
          state veterans' cemeteries, including the acquisition of initial  
          operating equipment, if the state agrees to cover the  
          administrative and oversight costs. These administrative and  
          oversight costs are offset eventually through federal veterans  
          burial benefits. The federal VA does not pay any off-site costs,  
          land purchases, demolition costs, or state employee costs that  
          may be charged by the Department of General Services.

          The administrative, oversight and operational costs are offset  
          
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          by a federal plot allowance paid to the state for the burial of  
          veterans by the USDVA and the dependent fees charged by the  
          state. The percentage of those costs depends on the type of  
          cemetery operation.  The federal Plot Allowance is currently  
          $734 and NCVC dependent fees are currently $500.




           Proposed state cemetery in Southern California  
          Considering federal guidelines and in conjunction with veteran  
          stakeholder groups and local governments, CalVet has determined  
          the need for a new state cemetery to serve the veteran  
          population of Orange, Los Angeles and Ventura Counties. CalVet's  
          analysis states the following:

            The burial rate must be determined and is the primary factor  
            that will determine the size, type and cost of construction,  
            as well as the operational costs of the Veterans Cemetery. We  
            will consider the veterans population, veteran's death rate,  
            and distance from cities to the proposed location of the  
            cemetery and of existing active veteran's cemeteries.  
            Riverside National Cemetery is the closest National Cemetery  
            to Orange, Los Angeles and Ventura Counties, which is the area  
            that the proposed Veterans Cemetery would serve. However, the  
            locations of Bakersfield National Cemetery to the north and  
            Miramar National Cemetery to the south were considered.         
                      

            The National Cemetery Administration uses a 75 mile radius to  
            determine if a veteran is being served by an existing Veterans  
            Cemetery. The flaw in their logic in determining if a veteran  
            is being served within a 75 mile radius is that they do not  
            consider natural barriers, location of roadways, traffic and  
            public transportation, which are proven barriers in the actual  
            use by veterans of veterans cemeteries. 

            Much of the area that our proposed veteran's cemetery would  
            serve is inside the 75 mile radius of Riverside National  
            Cemetery, but this fact will not prevent the state from  
            obtaining a federal grant to construct a State Veterans  
            cemetery. However, it must be considered when determining our  
          
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            facilities burial rate. For this reason we have not considered  
            the veterans population in Riverside or San Bernardino  
            Counties that may be closer to our proposed location. We are  
            considering the entire veteran population of Orange, Los  
            Angeles and Ventura counties as those veterans would reside  
            closer to our proposed location than to the Riverside National  
            Cemetery. 

            The National Cemetery Administration inters 13.5% of the  
            eligible veterans in their catchment areas (75 mile radius)  
            nationwide. The Northern California Veterans Cemetery (NCVC)  
            inters 27% of the eligible veterans within a 75 mile radius of  
            the cemetery. 

            When determining the burial rate for the California Central  
            Coast Veterans Cemetery (CCCVC) CDVA and the USDVA agreed on a  
            25% interment rate based on our experience at NCVC.  
            Understanding that there are so many unmeasurable factors in  
            determining the percentage this is not a science, but an  
            estimation of the actual number of veterans that will be  
            interred in our proposed Veterans Cemetery. 



            Casket and Cremated Interments at the Proposed Veterans  
            Cemetery 

                     Federal VA Burial Rate Percentage - 13.5% = 2,124  
                 veteran burials per year, including dependent burials =  
                 2,974 

                     NCVC Burial Rate Percentage - 27% = 4,247 veteran  
                 burials per year, including dependent burials = 5,746

                     CCCVC proposed Rate Percentage - 25% = 3,933  
                 veterans burials per year, including dependent burials =  
                 5,506

            Dependent burials are not considered in the above figures and  
            USDVA and CDVA agree that it averages an additional 40% to the  
            total of veterans interred in veteran's cemeteries.

          
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                                       COMMENT  
          
           Related Legislation

          SB 232 (Monning, Ch. 694, Stats. 2013)  

           (1) Repeals a budget allocation for a loan to the Central Coast  
           State Veterans Cemetery at Fort Ord; (2) appropriates $1  
           million to the Central Coast State Veterans Cemetery at Fort  
           Ord Endowment Fund for construction of the Cemetery; and (3)  
           amends current statutory requirements of regarding the use of  
           interest on a principal in the Fund. (4) Requires that any  
           money transferred as part of the budget action granting a loan  
           to the Fund be returned to the General Fund. 

           SB 106 (Monning, Ch. 41, Stats. 2013)  

           (1) Provides CalVet authorization to enter into a financial  
           agreement to receive cash advances into the Endowment Fund,  
           contingent upon that agreement not requiring the state to repay  
           or make payments on cash advances. (2) Requires CalVet to  
           develop and submit a State Veterans Cemetery Grant Program  
           application to the United States Department of Veterans Affairs  
           (USDVA) for the establishment of a veterans cemetery upon the  
           determination of the State Controller, after consultation with  
           the Secretary of CalVet (Secretary). (3) This bill specifies  
           that if the Secretary or CalVet fails to submit a grant  
           application to the Program, if USDVA denies the grant  
           application, or if the grant funding is not received for any  
           other reason, requires any amounts donated, received, or  
           deposited to the Fund by specified entities to be refunded.

           AB 1842 (Monning, Ch. 745, Stats. 2012)  

           (1) Authorizes the California Department of Veterans Affairs to  
           enter into a financial agreement to receive cash advances in  
           the existing Endowment Fund previously created to help the  
           proposed California Central Coast State Veterans Cemetery at  
           Fort Ord. (2) Provides such agreements are permissible so long  
           as no obligations of repayment are made to the state, and each  
           agreement is reviewed and performed in consultation with the  
          
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           Department of Finance.  (3) Authorizes CDVA to use money  
           received from the prospective federal grant, which is  
           transferred to the Fund, to reimburse the costs of developing  
           and submitting the grant application, to reimburse any cash  
           advances made to the Fund.

           AB 629 (Monning, Ch. 267, Stats. 2011)

            Prior law required CDVA, in voluntary cooperation with the  
           Monterey County Board of Supervisors, the City of Seaside, the  
           Fort Ord Reuse Authority (FORA), and local agencies to design,  
           develop, and construct the California Central Coast Veterans  
           Cemetery at Fort Ord, as specified. The State Contract Act  
           requires projects that are not under the jurisdiction of  
           specified departments to be under the charge and control of the  
           Department of General Services (DGS). This bill authorizes  
           CDVA, rather than DGS, to enter into an agreement with the FORA  
           for the veterans cemetery project to be under the sole charge  
           and direct control of the FORA.

           AB 1757 (Monning, Ch. 450 Stats. 2010)  

           (1) Requires the California Department of Veterans Affairs  
           (CDVA), in voluntary consultation with local governments and  
           stakeholders, to construct the California Central Coast  
           Veterans Cemetery at Ford Ord. (2) Authorizes CDVA to design,  
           develop, and construct the cemetery in phases. (3) Requires the  
           regulations established regarding burial eligibility to apply  
           to all state-operated veterans cemeteries, and limits burial to  
           dependent children of honorably discharged veterans.

           AB 3035 (Laird, Ch. 291 Stats. 2006)

            Creates the California Central Coast State Veterans Cemetery at  
           Fort Ord Endowment Fund in the State Treasury and directs that  
           moneys in the Fund be allocated, upon appropriation, to CalVet  
           for annual administrative and oversight costs of the cemetery. 

           SB 1815 (McPherson, Ch. 771, Stats. 2000)

            Ordered the development of the Central Coast Veterans Cemetery  
           Master Plan and appropriated $140,000 for the creation of a  
          
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           Cemetery Master Development Fund.


                                       POSITIONS  
          
          Sponsor:  Author.

          Support:

          American Legion, Department of California
          AMVETS, Department of California
          California Association of County Veterans Service Officer
          California State Commanders Veterans Council
          City of Irvine
          City of Lake Forest
          Orange, County of 
          Veterans of Foreign Wars, Department of California
          Vietnam Veterans of America, California State Council

          Oppose:   None on file.

          Analysis by: Wade Cooper Teasdale




















          
          AB 1453 (Quirk-Silva)                                       9