BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 722
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          ASSEMBLY THIRD READING
          SB 722 (Correa)
          As Amended  April 22, 2014
          2/3 vote. Urgency 

           VETERANS AFFAIRS    8-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Quirk-Silva, Dababneh,    |Ayes:|Gatto, Bigelow,           |
          |     |Brown, Eggman, Fox,       |     |Bocanegra, Bradford, Ian  |
          |     |Melendez, Muratsuchi,     |     |Calderon, Campos,         |
          |     |Salas                     |     |Donnelly, Eggman, Gomez,  |
          |     |                          |     |Holden, Jones, Linder,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Wagner,    |
          |     |                          |     |Weber                     |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Extends the sunset date for the California Mexican  
          American Veterans' Memorial Beautification and Enhancement  
          Account, as specified.  Specifically,  this bill  :  

          1)Changes the sunset date for reversion to the General Fund (GF)  
            of any monies remaining in the California Mexican American  
            Veterans' Memorial Beautification and Enhancement Account from  
            July 1, 2014, to July 1, 2016.

          2)Contains an urgency clause.

          3)Specifies that in order to prevent the expiration of funding  
            needed for the beautification and enhancement of the  
            California Mexican American Veterans' Memorial, it is  
            necessary for this act to take effect immediately.

           EXISTING LAW  : 

          1)Establishes the California Mexican American Veterans' Memorial  
            Beautification and Enhancement Committee (Committee) under the  
            jurisdiction of the Department of Veterans Affairs (CALVET),  
            to oversee enhancement of an existing memorial on state  
            grounds, and provides for its composition (seven members) and  
            duties.









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          2)Authorizes the Committee to, among other things, establish a  
            schedule for the design, construction, and dedication of the  
            memorial, solicit designs and devise a process for selection  
            of the final design, monitor construction, and consult with  
            and obtain final design and site orientation approval from the  
            Department of General Services and the CALVET Secretary.

          3)Requires the Committee to notify the Governor and the CALVET  
            Secretary when the beautification and enhancement of the  
            memorial is complete.

          4)Provides that any monies remaining in the California Mexican  
            American Veterans' Memorial Beautification and Enhancement  
            Account will revert to the GF on July 1, 2014.

           FISCAL EFFECT  :   By extending the reversion sunset there is a  
          foregone revenue loss of about $300,000 - the balance of the  
          account that would revert to the GF absent a sunset extension. 


           COMMENTS  :  Shortly after the World War II armistice, a group of  
          Mexican American women, also known as the "Madres," banded  
          together to create a memorial that would honor their husbands  
          and sons who had died in the military service of the United  
          States during the War.

          Beginning in 1948, the Madres launched a fundraising drive to  
          finance the memorial.  Their efforts included vending homemade  
          tamales and conducting raffle sales at their local church  
          parishes and other venues.

          Dedicated in May 1951, the memorial consisted of a statue of a  
          solitary infantryman.  Known as "El Soldado," the statue stood  
          on the grounds of the Mexican American Center in Sacramento.

          Weathered and worn over time, El Soldado remained at this site  
          for decades until the location was rezoned by local government.   
          The statue was donated to the State of California with the  
          expectation that it would become an official and permanent state  
          memorial.  In 1975, El Soldado was moved to its present location  
          across the street from the Main (West) entrance to the State  
          Capitol.

          Beginning with AB 1350 (Polanco), Chapter 1221, Statutes of  








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          1993, several legislative measures addressed the modest statue  
          memorial.  AB 1350 authorized expansion and enhancement of El  
          Soldado.  The measure also established the 11-member California  
          Mexican American Veterans' Memorial Beautification and  
          Enhancement Commission (Commission) as a non-governmental  
          committee of citizens authorized to establish a schedule for its  
          design, construction, and dedication; to solicit designs and  
          devise a process for selection of the final design; and to  
          monitor construction.

          In addition, AB 1350 provided that funds for the enhancement  
          would come from individuals voluntarily designating an amount on  
          their state personal income tax returns (in excess of their tax  
          liability) to the California Mexican American Veterans' Memorial  
          Beautification and Enhancement Account, also created by the  
          legislation.

          This Commission had no significant activity for years, including  
          public meetings, fundraising, or memorial enhancements.

          By the mid-2000s, community leaders, including members of the  
          existing Commission, were working to enact legislation that  
          would jumpstart the effort to enhance the El Soldado memorial.   
          SB 599 (Negrete McLeod), Chapter 588, Statutes of 2007, was  
          sponsored by the American G.I. Forum and the Mexican American  
          Veterans Memorial, Inc.  The bill received no formal opposition  
          and passed through both houses of the Legislature on consent.

          SB 599 repealed the 11-member Commission and created the  
          Committee under the jurisdiction of CALVET.

          The Committee is made up of five gubernatorial appointees and  
          one appointee each by the Senate President Pro Tempore and the  
          Assembly Speaker.  The Committee is authorized to establish a  
          schedule for the design, construction and dedication of the  
          enhanced memorial; to solicit and select designs that may be  
          used to beautify the existing memorial; and to solicit and  
          receive contributions that will be used to offset the costs of  
          the enhancements and beautification project.  None of the  
          members receive compensation.

          In recent years, the Committee had difficulty proceeding on the  
          project because there were not enough members to achieve a  
          voting quorum.  At the start of calendar year 2013, Governor  








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          Brown filled out the Committee by appointment and it began  
          making progress.

          The greatest challenge throughout the various life phases of the  
          memorial project has been fundraising.  Only private donations  
          can be used to support this state memorial.

          Via SB 599, the Military and Veterans Code (MVC) Section 1340  
          authorizes the creation of the California Mexican American  
          Veterans' Memorial Beautification and Enhancement Account within  
          the GF.  It specifies that all funds received by CALVET shall be  
          deposited in the account for the design and construction of the  
          California Mexican American Veterans' Memorial as specified in  
          MVC Section 1341.

          MVC Section 1341 provides for continuous appropriation of all  
          funds for the project, but also states that, on July 1, 2014,  
          any monies remaining in the California Mexican American  
          Veterans' Memorial Beautification and Enhancement Account shall  
          revert to the GF.

          In February 2013, the Senate Veterans Affairs Committee held an  
          informational hearing on the status of the memorial project.   
          The Committee and CALVET say they now are pursuing a plan that  
          would fund and construct the enhancements in three stages at the  
          following levels, respectively:  $300,000; $500,000; and  
          $800,000.  According to their input, each stage would look like  
          a completed memorial, but each new stage would add significant  
          enhancements to the prior stage's design or landscaping. 

          During the informational hearing, the likely need to extend the  
          funds reversion deadline was discussed.  At that hearing,  
          Senator Correa, Senator Knight, and other senators in attendance  
          agreed to author the extension. 

          Related legislation:  SB 599 (Negrete McLeod), Chapter 588,  
          Statutes of 2007, repealed the original 11-member California  
          Mexican American Veterans' Memorial Beautification and  
          Enhancement Commission and created a new seven-member committee  
          under the jurisdiction of CALVET.  Also repealed the defunct  
          associated tax check-off.

          SB 1064 (Perata), Chapter 989, Statutes of 1999, amended the  
          minimum contribution section to specify that the California  








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          Mexican American Veterans' Memorial Beautification and  
          Enhancement Account would not be subject to the $250,000 minimum  
          contribution until 2001.

          AB 2366 (Cedillo), Chapter 818, Statutes of 1998, provided that  
          the California Mexican American Veterans' Memorial  
          Beautification and Enhancement Account could be placed on the  
          state income tax return for voluntary contributions when the  
          department is notified by the Veterans Memorial Commission that  
          construction of the Veterans Memorial had commenced. 

          AB 1350 (Polanco), Chapter 1221, Statutes of 1993, established  
          the Mexican American Veterans' Memorial Beautification and  
          Enhancement Account.  This fund could not be placed on the state  
          income tax return for voluntary contribution until the Veteran's  
          Memorial Fund came off the return, and the department was  
          notified by the Veterans Memorial Commission prior to September  
          1 of any taxable year that the Veteran's Memorial had been  
          completed.
           
          Analysis Prepared by  :    John Spangler / V. A. / (916) 319-3550  
          FN: 0003379