BILL ANALYSIS �
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UNFINISHED BUSINESS
Bill No: SB 106
Author: Monning (D)
Amended: 6/11/13
Vote: 27 - Urgency
SENATE VETERANS AFFAIRS COMMITTEE : 6-0, 4/9/13
AYES: Hueso, Knight, Block, Correa, Lieu, Nielsen
NO VOTE RECORDED: Roth, Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 37-0, 4/29/13 (Consent)
AYES: Anderson, Beall, Berryhill, Block, Calderon, Cannella,
Corbett, Correa, De Le�n, DeSaulnier, Emmerson, Evans, Fuller,
Gaines, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff,
Jackson, Knight, Lara, Leno, Lieu, Monning, Nielsen, Padilla,
Pavley, Price, Roth, Steinberg, Walters, Wolk, Wright, Wyland,
Yee
NO VOTE RECORDED: Liu, Vacancy, Vacancy
ASSEMBLY FLOOR : 79-0, 6/14/13 - See last page for vote
SUBJECT : California Central Coast State Veterans Cemetery at
Fort Ord: Endowment Fund
SOURCE : Author
DIGEST : This bill provides the Department of Veterans Affairs
(CalVet) statutory authorization to enter into a financial
agreement to receive cash advances into the Endowment Fund
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(Fund), contingent upon that agreement not requiring the state
to repay or make payments on cash advances. This bill requires
CalVet to develop and submit a State Veterans Cemetery Grant
Program (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
(Controller), after consultation with the Secretary of CalVet
(Secretary). 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.
Assembly Amendments (1) require CalVet to develop and submit a
Program application to USDVA for the establishment of a veterans
cemetery upon the determination of the Controller, after
consultation with the Secretary, that the Fund has adequate
funding as specified; (2) specify that if the Secretary or
CalVet fails to submit a grant application to the Program, if
the USDVA denies the grant application, or if the grant funding
is not received for any other reason, the amounts donated,
received or deposited will be refunded or transferred as
specified; and (3) add an urgency clause.
ANALYSIS :
Existing law:
1. Authorizes CalVet to enter into a financial agreement to
receive cash advances in the existing Fund previously created
to help the proposed California Central Coast State Veterans
Cemetery at Fort Ord.
2. Provides that any such agreement is permissible so long as
no obligations of repayment are made to the state, and the
agreement is reviewed and performed in consultation with the
Department of Finance (DOF).
3. Authorizes CalVet 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.
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4. Requires CalVet to develop and submit a Program application
to the USDVA for the establishment of a veterans cemetery
upon the determination of the Controller, after consultation
with the Secretary, that the Fund has adequate principal to
annually yield sufficient investment earnings from the date
of the determination to cover the annual administrative and
oversight costs and to fund the estimated costs of developing
and submitting the application.
This bill:
1. Provides that CalVet's statutory authorization to enter into
a financial agreement to receive cash advances into the Fund
is contingent upon that agreement not requiring the state to
repay or make payments on cash advances.
2. Requires that the agreement is reviewed and approved by DOF.
3. Specifies that, if the Secretary or CalVet fails to submit a
grant application to the Program, if the USDVA denies the
grant application, or if the grant funding is not received
for any other reason, require any amounts donated, received,
or deposited to the Fund by specified entities to be refunded
by the Controller to those entities, and makes an
appropriation for the purpose of making those refunds.
4. Requires any amounts remaining in the Fund after making the
refunds, if any, to be transferred to the General Fund (GF).
5. Contains an urgency clause.
Background
Central Coast State Veterans Cemetery . In 1991 the federal Base
Realignment and Closure Commission recommended that the U.S.
Army post at Fort Ord be inactivated. The fort was closed in
1994. Part of the Base Reuse Plan includes building a veterans'
cemetery.
Traditionally, veterans' cemeteries have been federal
responsibilities, but as the last century came to a close the
federal government enacted a cost saving measure by offering to
build cemeteries but let states pay the maintenance costs in
perpetuity as was done with the now completed Redding cemetery -
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California's first.
Under the federal Veterans Affairs State Cemetery Grants
Program, the federal government will fund 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 in perpetuity.
Subsequent legislative efforts to use the master development
plan to apply to the State Cemetery Grants Program have not been
successful due to the ongoing administrative and oversight
fiscal impact a state veterans' cemetery at Fort Ord would have
on the state's GF.
Once completed, the cemetery will serve all veterans, but will
be most convenient for the approximately 100,000 veterans and
their families living within the 75-mile radius, an area that
includes the counties of Monterey, Santa Cruz, San Benito and
half of Santa Clara.
A federal grant program provides funds to build both initial and
follow-on phases, but the State of California is responsible for
maintaining the cemetery -- using moneys from an endowment fund.
AB 3035 (Laird, Chapter 291, Statutes of 2006) established an
endowment to cover maintenance costs -- prior to applying for
grant funding for construction. The endowment fund goal is $3.4
million. The current strategy is to sell or lease a portion of
the site not required to meet burial needs for the next 100
years.
Comments
According to the author's office, AB 1842 (Monning, Chapter 745,
Statutes of 2012) was signed into the law by Governor Brown
during the 2011-12 Session, and stipulated that CalVet could
enter into financial agreements to receive cash advances in an
Fund to be used for purposes of constructing the Central Coast
State Veterans Cemetery at Fort Ord. Upon signing the
legislation, the Governor's office requested two minor
clarifying changes to the code section to better explain the
provisions of the bill.
While the language contained in AB 1842 expressed that
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California has no obligation of repayment on cash advances
received into the Fund, the clarifying language found in this
bill is more explicit and clear in relaying that the State of
California will in no way be required to repay or make payments
on cash advances.
This bill also seeks to clarify that any agreement entered into
by CalVet to receive cash advances, is first reviewed and
approved by DOF.
Prior legislation . AB 1842 (Monning, Chapter 745, Statutes of
2012) (1) authorized CalVet to enter into a financial agreement
to receive cash advances in the existing Fund previously created
to help the proposed California Central Coast State Veterans
Cemetery at Fort Ord; (2) provided 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 DOF; and (3) authorized CalVet 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.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/13/13)
American Legion - Department of California
AMVETS - Department of California
California Association of County Veterans Service Officers
California State Commanders Veterans Council
Fort Ord Reuse Authority
Monterey County Board of Supervisors
Veterans of Foreign Wars - Department of California
Vietnam Veterans of America - California State Council
ASSEMBLY FLOOR : 79-0, 6/14/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
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Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell,
Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,
Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon, Salas,
Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,
Wilk, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Vacancy
AL:k 6/17/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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