California Senate Bill SB543 Amended / Bill

 BILL NUMBER: SB 543AMENDED BILL TEXT AMENDED IN ASSEMBLY JUNE 8, 2016 AMENDED IN ASSEMBLY SEPTEMBER 11, 2015 AMENDED IN ASSEMBLY JUNE 18, 2015 AMENDED IN SENATE MAY 5, 2015 AMENDED IN SENATE APRIL 15, 2015 INTRODUCED BY Senator Wolk FEBRUARY 26, 2015 An act to amend Sections 1010 and 1049 of, and to repeal and add Sections 1047 and 1048 of, the Military and Veterans Code, relating to veterans, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST SB 543, as amended, Wolk. Veterans: Veterans' Home of California. Existing law provides for the establishment and operation of the Veterans' Home of California at various sites, including homes in Barstow, Chula Vista, Lancaster, Ventura, and Yountville, and provides for an administrator for each home or homesite. Existing law defines "home" and "administrator" for these purposes. Existing law establishes the Veterans' Home Fund in the State Treasury, which includes the proceeds of certain bonds. Existing law requires, upon appropriation of the Legislature, the Department of Veterans Affairs to use money in the fund for the purpose of designing and constructing veterans' homes in California. This bill would clarify that veterans' homes include the Veterans' Homes of California located in Chula Vista, Fresno, Lancaster, Redding, Ventura, West Los Angeles, and any future  Veteran's   Veterans   '  Home of California that is established. Existing law requires the administrator of a veterans' home to maintain a Morale, Welfare, and Recreation Fund, which is required to be used, at the discretion of the administrator and subject to the approval of the Secretary of Veterans Affairs, to provide for the general welfare of the veterans. Existing law specifies the moneys required to be deposited into the fund, and requires the administrator to prepare an itemized report for the expenditures made out of, and deposits made into, the fund. Under existing law, those reports are required to be submitted to the secretary, the fiscal committees of the Assembly and Senate, the committees of the Assembly and the Senate that have subject matter jurisdiction over veterans' affairs, and the Veterans' Home Allied Council on or before August 20 of each year. This bill would create the Veterans' Home Morale, Welfare, and Recreation Special Fund (MWR Fund), a continuously appropriated fund, in the State Treasury. The bill would require the administrator of a veterans' home to deposit all moneys maintained by the administrator in an existing Morale, Welfare, and Recreation Fund into the statewide MWR Fund. The bill would require the administrator of each home to establish a Morale, Welfare, and Recreation Operating Fund (MWRO Fund) to administer quality of life activities for the general welfare of the residents and receive funds from the MWR Fund, as specified, and to establish  a separate account for the purpose of receiving donations and would require the department, in consultation with the residents of each home, to adopt regulations for expenditure of those funds.   an MWR Advisory Committee, as specified.  The bill would require the department, in consultation with the  residents of each home,   MWR Advisory Committee,  the Veterans' Home Allied  Council, and   Council or  the resident council of each home, to adopt regulations related to, among other things, administering the MWR Fund and the MWRO  Funds,   Funds  and the process by which the homes submit and receive budget allocations. The bill would authorize the use of funds in the MWR Fund to provide for the general welfare of the residents of a home, as specified, and would specify restrictions on the use of those funds. The bill would require the department to annually determine the total amount for disbursement from the MWR Fund, and for that disbursement to be allocated proportionally to each home's relative share of the total population of the entire veterans' home system. The bill would authorize additional allocations  to homes for special projects for good cause, and  to any veterans' home if it is appropriate on the basis of factors including, but not limited to, the home's unique age, size, population, and historical significance. The bill would authorize the administrator of a home to enter into an agreement with the Veterans' Home Allied Council to operate facilities and activities that are related to authorized expenditures from the MWR Fund, as specified. The bill would require the department to prepare annual reports regarding moneys deposited into the MWR Fund and expenditure of those funds, as specified, and to submit the report on or before  August 20   December 31  of each year to specified entities. The bill would  require the department to maintain a $3,000,000 reserve in the MWR Fund and would  authorize the department to invest moneys in the MWR Fund in the Surplus Money Investment  Fund.   Fund or by contracting with a third-party investment broker   consistent with laws and regulations regarding selecting prudent, approved investment types.  Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. It is the intent of the Legislature to enact legislation that accomplishes  all:   all  of the following: (a) Creates a statewide Veterans' Home Morale, Welfare, and Recreation Fund.  (b) Creates a Morale, Welfare, and Recreation Operating Fund at each veterans' home.   (b)   (c)  Authorizes and directs the Department of Veterans Affairs to promulgate rules and regulations related to the statewide Veterans' Home Morale, Welfare, and Recreation Fund through a stakeholder process that includes members of the Veterans' Homes of California. It is further the intent of the Legislature that these rules and regulations include, but not be limited to, a yearly  budgeting   allocation  process for moneys to be expended in each home.  (c)   (d)  Maintains the highest possible degree of transparent administration and resident involvement.  (e) Encourages identical Morale, Welfare, and Recreation Fund policies and procedures to be established, documented, and implemented at each veterans' home.  SEC. 2. Section 1010 of the Military and Veterans Code is amended to read: 1010. As used in this chapter: (a) "Home" means the  Veterans' Home of California System, which includes the  Veterans' Home of California, Barstow, the Veterans' Home of California, Chula Vista, the Veterans' Home of California, Fresno, the Veterans' Home of California, Lancaster, the Veterans' Home of California, Redding, the Veterans' Home of California, Ventura, the Veterans' Home of California, West Los Angeles, and the Veterans' Home of California, Yountville, and any future Veterans' Home of California which may be established on and after January 1, 2016. (b) "Administrator" means the Administrator of the Veterans' Home of California, Barstow, the Administrator of the Veterans' Home of California, Chula Vista, the Administrator of the Veterans' Home of California, Fresno, the Administrator of the Veterans' Home of California, Lancaster, the Administrator of the Veterans' Home of California, Redding, the Administrator of the Veterans' Home of California, Ventura, the Administrator of the Veterans' Home of California, West Los Angeles, and the Administrator of the Veterans' Home of California, Yountville, and the administrator of any future Veterans' Home of California which may be established on and after January 1, 2016. (c) "Department" means the Department of Veterans Affairs. (d)  "Director" means the Director   "Secretary"   means the Secretary  of Veterans Affairs. (e) "Veteran" means a member of the home. SEC. 3. Section 1047 of the Military and Veterans Code is repealed. SEC. 4. Section 1047 is added to the Military and Veterans Code, to read: 1047. (a) (1) The Veterans' Home Morale, Welfare, and Recreation Special Fund (MWR Fund) is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, all funds deposited in the MWR Fund as authorized by this section shall be continuously appropriated to the department, without regard to fiscal year. All references in this chapter to the "Morale, Welfare, and Recreation Fund" or "MWR Fund" are deemed to refer to the fund created by this paragraph. (2) The department shall distribute moneys in the MWR Fund to the homes to provide for the general welfare of the members of the homes. (3) For the purposes of this subdivision, providing for the general welfare of the members of a home includes, but is not limited to, operating a canteen,  base exchange,  hobby shop, theater, library, or band, and payment for newspapers, chapel expenses, entertainment expenses, sports activities, celebrations,  capital improvements that directly enhance the quality of life,  or any other function or activity that is related to the morale, welfare, and recreation of the residents that would not otherwise be paid for by the General Fund. (4) The administrator of a home shall deposit all moneys maintained by the administrator in a Morale, Welfare, and Recreation Fund pursuant to this section as it read on January 1, 2015, into the Veterans' Home Morale, Welfare, and Recreation Special Fund created by paragraph (1). (5) All future moneys collected as a result of unreimbursed costs of care determinations are special state funds and shall be deposited in the MWR Fund.  (6) Each home shall establish an MWR Advisory Committee to provide ongoing guidance for the MWR Fund processes, including, but not limited to, budgeting, contracts, investments, expenditures, and revenues. The committee shall be comprised of the administrator or a representative and representatives of the Veterans' Home Allied Council or resident council.   (6)   (7)  On or before July 1,  2017,   2018,  the department, in consultation with the  members at  MWR Advisory Committee in  each home, the Veterans' Home Allied Council,  and   or  the resident council at each home, shall adopt regulations that carry out the intent of this section, including, but not limited to, the administration of the MWR Fund and Morale, Welfare, and Recreation Operating Funds (MWRO Funds), the process by which the homes submit annual budgets and receive allocations, the process by which the secretary shall review and act upon the allocation requests and requests for augmentation of those allocations.  (7)   (8)  Moneys deposited in the MWR Fund are exempt from the requirements of Article 2 (commencing with Section 11270) of Chapter 3 of Part 1 of Division 3 of Title 2 of the Government Code. (b) (1) The  department, upon the recommendation of the board,   department  shall annually determine the amount for disbursement from the MWR Fund to the homes. This amount shall be disbursed proportionally by each home's relative share of the total population of the entire veterans' home system. All annual allocation requests and annual allocations, as well as any augmentations  or additional   to those  allocations, shall be made known to the members of the homes. In making allocation decisions, the department shall consider whether there are economies of scale or other savings which may be realized by aggregating home requests or otherwise while still meeting the intent of the homes' requests.  (2) In addition to the annual disbursement to a home from the MWR Fund, the secretary may, on an annual basis and in his or her discretion, allow for an additional one-time allocation of moneys in an amount no greater than 5 percent of that annual disbursement for a special project if the administrator of the home submits a proposal to the secretary that shows good cause for the allocation. In developing the proposal, the administrator shall consult with the members of the home, the Veterans' Home Allied Council, or the resident council at the home.   (3)   (2)  The  secretary   secretary, in consultation with the administrator of the affected home,  may augment the allocation from the MWR Fund to any veterans' home after making a determination that this action is appropriate on the basis of  the factors including, but not limited to, the home's unique age, size, population, and historical significance.  (4) The board shall review any proposed allocation pursuant to paragraph (1), (2), or (3). This review shall include receiving public comment and soliciting comments from the Veterans' Home Allied Council or other resident representative body of each home. The board shall consider and adopt its advice at a publicly noticed meeting before providing that advice to the secretary. The secretary may act contrary to the board's advice, but shall provide the board with an explanation of why the advice was not the basis for the secretary's chosen action.  (c) Moneys in the MWR Fund shall not be expended for the following: (1) A medical treatment or  a treatment related to a medical treatment.   medical care of a member of a home.  (2) The maintenance  or major capital improvement  of the physical plant of a home. (3)  A   Any  function, operation, or activity that is not directly related to the morale, welfare, or recreation of the members of the home. (d) 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 MWR Fund for those described purposes. (e) The department shall adopt, use, and require the homes to use uniform accounting procedures for the MWR Fund and the MWRO  Funds.   Funds subject to the department's oversight and audit as needed.  The department shall prepare an itemized report that is organized by category,  includes a   including  sufficient detail to allow legislative oversight, and accounts for all expenditures from, and all funds deposited into, the MWR Fund  and the MWRO Funds  for the previous fiscal year. The department shall submit the report on or before  August 20, 2017,   December 31, 2018,  and annually on or before August 20 thereafter, to the following: (1) The Department of Finance. (2) The fiscal committees of the Assembly and Senate. (3) The committees of the Assembly and the Senate that have subject matter jurisdiction over veterans' affairs. (4) The Veterans' Home Allied Council or the resident council of each home. (5) The administrator of each home. (f) The department shall maintain a reserve in the MWR Fund of not less than  two   three  million dollars  ($2,000,000).   ($3,000,000).  (g) The department may transfer funds from the MWR Fund to the Surplus Money Investment Fund for investment pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government  Code.   Code or may hire a third-party investment broker to invest moneys from the MWR Fund c   onsistent with Section 16480.2 of the Government Code and any regulations regarding selecting prudent, approved investment types.  The amount invested and the accrued interest or earnings shall be credited to the MWR Fund for allocation by the department. (h) The administrator of a home may enter into an agreement with the Veterans' Home Allied Council that authorizes the council to operate facilities and engage in activities that are authorized by subdivision (b). The agreement shall be in the form and manner specified by the administrator and in conformity with applicable California law and regulations, including, but not limited to, the state procurement and contracting process. SEC. 5. Section 1048 of the Military and Veterans Code is repealed. SEC. 6. Section 1048 is added to the Military and Veterans Code, to read: 1048. (a) A Morale, Welfare,  and  Recreation Operating Fund (MWRO Fund) shall be maintained by the administrator of each home to administer quality of life activities for the general welfare of the members, pursuant to the annual  allocation   allocation, including any augmentation provided by the Secretary,  from the MWR Fund. (b) The annual allocations from the MWR  Fund   Fund,   including any augmentations provided by the Secretary,  and any other quality of life moneys received shall be deposited in a local bank account established for this purpose. (c) Moneys in the MWRO Fund shall not be expended for the following: (1) Medical treatment or  a treatment related to a medical treatment.   medical care for a member.  (2) The maintenance  or major capital improvement  of the  Home's  physical plant. (3) A function, operation, or activity that is not directly related to the morale, welfare, or recreation of the members of the home. SEC. 7. Section 1049 of the Military and Veterans Code is amended to read: 1049. (a) Moneys in the Morale, Welfare, and Recreation Fund maintained under subdivision (a) of Section 1047 may be used, subject to approval by the secretary, to establish or operate a canteen  and base exchange  at each home location. The canteen may sell goods at a profit.  (b) (1) Each home shall establish an account separate from the MWR Fund and the MWRO Fund for the purpose of receiving donations.   (2) On or before July 1, 2017, the department, in consultation with the residents of the home, shall adopt regulations that govern expenditures from the donation account described in paragraph (1).   (c)   (b)  The MWRO Fund of each home shall include proceeds from the operation of a canteen,  revenue derived from the issuance of prisoner-of-war special license plates pursuant to Section 5101.5 of the Vehicle Code, interest earned on invested funds, funds derived from the estates of deceased residents, and any other moneys or property described in this chapter, including, but not limited to, moneys and properties received by the home from estate assets located outside the home, regardless of amount.   or base exchange.  Any moneys derived from golf course green fees, range ball fees, and operations of activities  specifically at the   unique to each  Veterans' Home of  California, Yountville,   California  shall be  credited to   deposited in  the MWRO Fund allocation for that  home.   home after appropriate state costs, fees, and rent are deducted from the revenue received for those operations.