Bill Text: CA SB106 | 2013-2014 | Regular Session | Chaptered
Bill Title: California Central Coast State Veterans Cemetery at Fort
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2013-06-28 - Chaptered by Secretary of State. Chapter 41, Statutes of 2013. [SB106 Detail]
Download: California-2013-SB106-Chaptered.html
BILL NUMBER: SB 106 CHAPTERED
BILL TEXT
CHAPTER 41
FILED WITH SECRETARY OF STATE JUNE 28, 2013
APPROVED BY GOVERNOR JUNE 28, 2013
PASSED THE SENATE JUNE 24, 2013
PASSED THE ASSEMBLY JUNE 14, 2013
AMENDED IN ASSEMBLY JUNE 11, 2013
AMENDED IN ASSEMBLY MAY 16, 2013
INTRODUCED BY Senator Monning
JANUARY 10, 2013
An act to amend Sections 1451 and 1453 of the Military and
Veterans Code, relating to veterans, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 106, Monning. California Central Coast State Veterans Cemetery
at Fort Ord Endowment Fund.
Existing law creates the California Central Coast State Veterans
Cemetery at Fort Ord Endowment Fund (Endowment Fund) in the State
Treasury, and requires moneys in the Endowment Fund to be allocated,
upon appropriation by the Legislature, to the Department of Veterans
Affairs for the annual administrative and oversight costs of the
veterans cemetery, as specified. Existing law also provides that the
Endowment Fund is to generate funding through interest for the
veterans cemetery. Existing law provides that the Endowment Fund may
consist of, among other things, donations from public and private
entities and fees. Existing law authorizes the department to enter
into any financial agreement to receive cash advances in the
Endowment Fund, provided that no obligations of repayment are made to
the state and the agreement is reviewed and performed in
consultation with the Department of Finance.
This bill would instead authorize the department to enter into any
financial agreement to receive cash advances in the Endowment Fund,
provided that the agreement does not require the state to repay or
make payments on cash advances and that the agreement is reviewed and
approved by the Department of Finance.
Existing law requires the department to develop and submit a State
Veterans Cemetery Grant Program application to the United States
Department of Veterans Affairs for the establishment of a veterans
cemetery upon the determination of the Controller, after consultation
with the Secretary of Veterans Affairs, that the Endowment 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 would instead require the department to develop and
submit a State Veterans Cemetery Grant Program application to the
United States Department of Veterans Affairs for the establishment of
a veterans cemetery upon the determination of the Controller, after
consultation with the Secretary of Veterans Affairs, that the
Endowment Fund has adequate principal to yield sufficient investment
earnings in each year for the next 10 years from the date of the
determination to fully fund the respective year's administrative and
oversight costs, net of all other estimated revenue sources, and to
fund the estimated costs of developing and submitting the
application.
This bill would, if the Secretary of Veterans Affairs or the
department fails to submit a grant application to the State Veterans
Cemetery Grant Program, if the United States Department of Veterans
Affairs 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 Endowment Fund by specified entities to be
refunded by the Controller to those entities, and would make an
appropriation for the purpose of making those refunds. This bill
would also require any amounts remaining in the Endowment Fund after
making the refunds, if any, to be transferred to the General Fund.
This bill would declare that it is to take effect immediately as
an urgency statute.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1451 of the Military and Veterans Code is
amended to read:
1451. (a) The California Central Coast State Veterans Cemetery at
Fort Ord Endowment Fund is hereby created in the State Treasury.
Moneys in the Endowment Fund shall be allocated, upon appropriation
by the Legislature, to the department for the annual administrative
and oversight costs of the veterans cemetery, pursuant to Sections
1453 and 1454, and to generate funding through interest for the
veterans cemetery.
(b) (1) Moneys in the fund shall first be invested with the goal
of achieving capital appreciation to create a balance sufficient to
generate ongoing earnings to cover the estimated annual oversight and
maintenance costs associated with the veterans cemetery pursuant to
Section 1453.
(2) Upon the determination of the Controller that the Endowment
Fund balance has attained the goal established in paragraph (1),
moneys in the fund shall be invested to generate earnings to fund
annual oversight and maintenance costs associated with the veterans
cemetery.
(c) (1) The Endowment Fund may consist of donations from public
and private entities, partnerships between public and private
entities, fees, cash advances, and transfers from the state General
Fund as may be specified by law.
(2) The department may enter into any financial agreement to
receive cash advances in the Endowment Fund, provided that the
agreement does not require the state to repay or make payments on
cash advances and the agreement is reviewed and approved by the
Department of Finance.
(d) To the extent possible, donations made in-kind to the
Endowment Fund shall be monetized so as to offset the ongoing
administrative and oversight costs under Sections 1452 and 1453.
(e) Earnings generated by the Endowment Fund shall be retained by
the fund.
(f) Moneys deposited in the Endowment Fund are exempt from the
requirements of Sections 11270 through 11277 of the Government Code.
(g) Moneys in the Endowment Fund shall be invested by the
Treasurer, after consultation with the department, in a manner that
best meets the goals of the fund.
(h) If, through changes in state or federal law, additional
revenues are identified for the administration and oversight of the
cemetery, including increases in federal burial allowances, so that
the amount of annual revenue exceeds the annual administrative and
oversight costs, the excess revenues shall be deposited in the
Endowment Fund.
SEC. 2. Section 1453 of the Military and Veterans Code is amended
to read:
1453. (a) (1) Upon the determination of the Controller, after
consultation with the Secretary of Veterans Affairs, that the
Endowment Fund has adequate principal to yield sufficient investment
earnings in each year for the next 10 years, from the date of the
determination, to fully fund the respective year's administrative and
oversight costs, net of all other estimated revenue sources, and to
fund the estimated costs of developing and submitting the State
Veterans Cemetery Grant Program application, the department shall
develop and submit a State Veterans Cemetery Grant Program
application to the United States Department of Veterans Affairs for
the establishment of a veterans cemetery. The department shall
consider cashflow needs when providing estimates to the Controller in
making this determination.
(2) The Controller, upon appropriation by the Legislature, shall
transfer moneys from the Endowment Fund to the Operations Fund in an
amount equal to the estimated costs of developing and submitting the
State Veterans Cemetery Grant Program application to the United
States Department of Veterans Affairs.
(3) Notwithstanding paragraph (1), the Controller, upon
appropriation by the Legislature, shall transfer funds from the
Endowment Fund to the Operations Fund in an amount at least equal to
the estimated costs to complete preliminary plans and working
drawings. Transfers shall be made only when sufficient funds, as
determined by the Director of Finance, exist to fully accomplish each
of these project phases.
(4) The department shall not proceed with advertisement for
construction bids until the Endowment Fund has adequate principal to
cover annual administrative and oversight costs, in accordance with
paragraph (1).
(b) (1) The Secretary of Veterans Affairs shall submit the State
Veterans Cemetery Grant Program application to the United States
Department of Veterans Affairs within six months of the Controller's
determination pursuant to subdivision (a). The Secretary of Veterans
Affairs is authorized to act as the official representative of the
state in connection with the State Veterans Cemetery Grant Program
application, including providing the United States Department of
Veterans Affairs throughout the application process with all
necessary assurances that additional information shall be provided
when required. The Secretary of Veterans Affairs shall have final
approval of all aspects of the cemetery design and operation.
(2) Upon transfer of funds pursuant to paragraphs (2) and (3) of
subdivision (a), the department is authorized to proceed with all
activities necessary to support the submission of the State Veterans
Cemetery Grant Program application.
(3) Upon the United States Department of Veterans Affairs'
certification of the grant award, the department is authorized to
proceed with construction and equipping of the veterans cemetery.
(c) (1) If awarded, the moneys received from the State Veterans
Cemetery Grant Program shall be used to reimburse the Endowment Fund
for the costs of developing and submitting the State Veterans
Cemetery Grant Program application to the United States Department of
Veterans Affairs and other eligible costs, and to fund 100 percent
of costs allowed by the grant requirements, as well as the state's
share of any other costs for the design, construction, and equipping
of the veterans cemetery.
(2) Any moneys received from the State Veterans Cemetery Grant
Program that are transferred to the Endowment Fund for the
reimbursement of the costs specified in paragraph (1) may be used by
the department to reimburse any cash advances made to the Endowment
Fund used for those costs to the extent allowed by grant
requirements, once it is determined by the California Department of
Veterans Affairs and certified by the Controller's office that
sufficient funds remain in the Endowment Fund to cover ongoing
maintenance and operating costs.
(3) (A) If the Secretary of Veterans Affairs or the department
fails to submit a grant application as described in paragraph (1) of
subdivision (b) to the United States Department of Veterans Affairs
State Veterans Cemetery Grant Program, the United States Department
of Veterans Affairs denies the grant application, or if the grant
funding pursuant to the United States Department of Veterans Affairs
State Veterans Cemetery Grant Program is not received for any other
reason, any amounts donated to, received by, or deposited to the
Endowment Fund by the entities described in subdivision (c) of
Section 1451 shall be refunded by the Controller to those entities,
and that amount is hereby appropriated from that fund the purpose of
making those refunds.
(B) Any amounts remaining in the Endowment Fund after making the
refunds described in subparagraph (A), if any, shall be transferred
to the General Fund.
(C) The Controller shall make the refunds to the entities,
including the Central Coast Veterans Cemetery Foundation, pursuant to
subparagraph (A) within six months from the date of the announcement
or receipt of the grant funding denial notification or any other
equivalent notification that the project will be unable to secure the
grant funds and proceed to construction. Any transfer to the General
Fund pursuant to subparagraph (B) shall also be made within that six
month period.
SEC. 3. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to meet the deadline of July 1, 2013, established by the
United States Department of Veterans Affairs as a result of federal
sequestration, which requires the California Department of Veterans
Affairs to submit its application for millions of dollars in federal
funds to cover the cost of building the California Central Coast
State Veterans Cemetery at Fort Ord, it is necessary that this act
take effect immediately.
