Amended in Assembly March 19, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1580

Introduced by Assembly Member Yamada

January 30, 2014

An act to amend Section 1047 of the Military and Veterans Code, relating to veterans.

LEGISLATIVE COUNSEL’S DIGEST

AB 1580, as amended, Yamada. Veterans’ homes: Morale, Welfare, and Recreation Fund.

Existing law provides for the establishment of veterans’ homes and requires the administrator of a veterans’ home to maintain a Morale, Welfare, and Recreation Fund to be used, subject to the approval of the Secretary of Veterans Affairs, to provide certain operations and activities relating to the general welfare of the veterans.

This bill would additionally require, for proposed expenditures of Morale, Welfare, and Recreation Fund moneys of more than $5,000, proposed contracts of more than $25,000 per year, or proposed contracts of more than $100,000, the administrator to submit the proposed expenditure or contract to the secretary for approval. This bill would require legal counsel of the Department of Veterans Affairs, or another similarly qualified reviewer, to review the proposed expenditure or contract, and to issue an advisory opinion, as described. This bill would also require the Department of Veterans Affairs to begin delete make a presentation to the Morale, Welfare, and Recreation Fund Advisory Committee of the home at a publicly noticed meeting, and would require interested and affected parties to be given an opportunity to provide input on the proposed expenditure or contract. end delete begin insert provide written notifications containing specified information prior to the execution of a proposed expenditure or contract, and upon the execution of the expenditure or contract, to the Veterans’ Home Allied Council or to another body representing the residents of the affected home or homes. This bill would provide the Veterans’ Home Allied Council or other body representing residents of the affected home or homes the opportunity to respond to the notification provided prior to the execution of a proposed expenditure or contract. end insert The bill would require the secretary to consider begin delete specified advisory opinions, any input or information provided in the meeting, end delete begin insert the advisory opinion end insert and any other relevant information when determining whether begin delete a end delete begin insert an expenditure or end insert contract will be approved.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

Section 1047 of the Military and Veterans Code
is amended to read:

1047.  

(a) (1) The administrator shall maintain a Morale,
Welfare, and Recreation Fund that shall be used, at the discretion
of the administrator and subject to the approval of the secretary,
to provide for the general welfare of the veterans, including, but
not limited to, providing for operations of the Veterans’ Home
Exchange, hobby shop, motion picture theater, library, band, and
any other function that is operated for the morale, welfare, and
recreation of the veterans, and to pay for newspapers, chapel
expenses, welfare and entertainment expenses, sport activities,
celebrations, and any other activity that is for the morale, welfare,
and recreation of the veterans.

(2) For proposed expenditures of Morale, Welfare, and
Recreation Fund moneys of more than five thousand dollars
($5,000), proposed contracts of more than twenty-five thousand
dollars ($25,000) per year, or proposed contracts of more than one
hundred thousand dollars ($100,000), all of the following shall
apply:

(A) The administrator shall submit the proposed expenditure or
contract to the secretary for approval. The secretary shall consider
the advisory opinion required in subparagraph (B) begin delete , any input or
information provided in the meeting described in subparagraph
(C), any advisory opinion issued by a body representing the
residents of the home, end delete and any other relevant information when
determining whether begin delete a end delete begin insert an expenditure or end insert contract will be approved.

(B) The proposed expenditure or contract shall be reviewed by
legal counsel of the department, or another similarly qualified
reviewer designated by the secretary. The reviewer shall issue an
advisory opinion to the secretary identifying those laws and
regulations with which the proposed expenditure or contract or
execution of the contract must comply, and any other relevant legal
issues that may arise with respect to compliance with those laws
and regulations.

begin delete

(C) (i) The department shall make a presentation about the
proposed expenditure or contract and the advisory opinion
described in subparagraph (B) to the Morale, Welfare, and
Recreation Fund Advisory Committee of the home at a publicly
noticed meeting. The department shall provide written public notice
of a meeting at least 30 days prior to the meeting.

(ii) Interested and affected parties, including, but not limited
to, residents of the home, family members of the residents, and
representatives from local government and the community shall
be given an opportunity to provide input on the proposed
expenditure or contract at the meeting. The Morale, Welfare, and
Recreation Fund Advisory Committee, the Veterans’ Home Allied
Council, or other body representing residents of the home may
also issue an advisory opinion on the proposed expenditure or
contract.

end delete begin insert

(C) Prior to the execution of a proposed expenditure or contract,
the department shall provide written notification in the form of a
draft expenditure proposal to the Veterans’ Home Allied Council
or to another body representing the residents of the affected home
or homes. The draft expenditure proposal shall include, but is not
limited to, a description of the intent of the project that is the
subject of the proposed expenditure or contract, estimated costs,
and an approximate timeline of execution. The Veterans’ Home
Allied Council or other body representing residents of the affected
home or homes shall have the opportunity to respond to the draft
expenditure proposal and the department shall consider any
responses provided.

end insert begin insert

(D) Upon the execution of the expenditure or contract, the
department shall provide written notification to the Veterans’
Home Allied Council or another body representing residents of
the affected home or homes. The notification shall identify the
purpose of the project, costs, and who is the recipient or recipients
of the moneys distributed from the Morale, Welfare, and Recreation
Fund.

end insert

(b) Money in the Morale, Welfare, and Recreation Fund may
not be expended for any of the following:

(1) Medical treatments or any other related treatment.

(2) Maintenance of the physical plant of the home.

(3) Any function, operation, or activity that is not directly related
to the morale, welfare, or recreation of the veterans.

(c) Appropriations from the General Fund for the purposes
described in paragraph (3) of subdivision (b) may not be reduced
for the purpose of, or to have the effect of, requiring increased
expenditures from the Morale, Welfare, and Recreation Fund for
those described purposes.

(d) The administrator shall prepare an itemized report that is
organized by category and accounts for all expenditures made from
the Morale, Welfare, and Recreation Fund during the previous
fiscal year and shall submit the report on or before August 20 of
each year to all of the following:

(1) The secretary.

(2) The fiscal committees of the Assembly and the Senate.

(3) The committees of the Assembly and the Senate that have
subject matter jurisdiction over veterans’ affairs.

(4) The Veterans’ Home Allied Council.

(e) The Morale, Welfare, and Recreation Fund for the Veterans’
Home of California, Yountville, shall maintain a reserve in the
amount of two million dollars ($2,000,000). The reserve shall be
invested in securities, upon the advice of the Morale, Welfare, and
Recreation Fund Advisory Committee and with the approval of
the administrator and the secretary.

(f) The administrator may enter into an agreement with an allied
council that authorizes that council to operate facilities and
activities authorized pursuant to this section. The agreement shall
be in the form and manner as specified by the administrator.