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 All moneys in each Morale, Welfare, and Recreation Fund maintained by the eight California state veterans’ homes shall be deposited into the Veterans’ Home Morale, Welfare, and Recreation Fund and the individual home funds shall be abolished. All references to the “Morale, Welfare, and Recreation Fund” or “MWR Fund” are shall be deemed to refer to the fund created by this paragraph. subdivision. (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, 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) (2) 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). Notwithstanding Section 13340 of the Government Code, all moneys deposited into the Veterans’ Home Morale, Welfare, and Recreation Fund are continuously appropriated to the department to provide for the general welfare of the residents living in the veterans’ homes of California.
(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.
(7) On or before July 1, 2018, the department, in consultation with the MWR Advisory Committee in each home, the Veterans’ Home Allied Council, 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.
(8) (3) Moneys deposited in the MWR Fund 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) (4) (1) (A) The 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 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. Moneys in the Veterans’ Home Morale, Welfare, and Recreation Fund may be distributed to the homes at the discretion, and subject to the approval, of the secretary, to provide for the general welfare of the residents living in state veterans’ homes.
(B) For purposes of this section, “general welfare” includes, but is not limited to, providing for operations of a canteen, hobby shop, motion picture theater, library, band, and any other function that is operated for the morale, welfare, and recreation of the residents, 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 residents.
(2) (5) The secretary, For proposed expenditures of Veterans’ Home Morale, Welfare, and Recreation Fund moneys, the department shall develop regulations and maintain guidelines whereby the administrator for each home, 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 factors including, but not limited to, the home’s unique age, size, population, and historical significance. Veterans’ Home Allied Council and residents, shall submit proposed expenditures or a proposed budget to the secretary for approval. Moneys from the fund shall be allocated proportionally to each home, based upon the census of the homes on July 1 of each year. Allocations from the fund may be augmented by the secretary to meet specified budget and identified needs.
(6) The department shall develop standardized expenditure procedures and regulations for the Veterans’ Home Morale, Welfare, and Recreation Fund in all homes, which shall be in accordance with standard state contract and procurement practices and rules. The department shall provide the residents, through the administrator of each home, with a quarterly report on the expenditures made from the fund on behalf of each home.
(c) (b) Moneys Money in the MWR Fund shall Veterans’ Home Morale, Welfare, and Recreation Fund may not be expended for any of the following:
(1) A medical treatment or medical care of a member of a home. Medical treatments or any other related treatment.
(2) The maintenance or major capital improvement Maintenance of the physical plant of a the home.
(3) Any function, operation, or activity that is not directly related to the morale, welfare, or recreation of the members of the home. residents.
(d) (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 MWR Veterans’ Home Morale, Welfare, and Recreation Fund for those described purposes.
(e) (d) The department shall adopt, use, and require the homes to use uniform accounting procedures for the MWR Fund and the MWRO Funds subject to the department’s oversight and audit as needed. The department shall prepare an itemized report that is organized by category, including sufficient detail to allow legislative oversight, category 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 made from the Veterans’ Home Morale, Welfare, and Recreation Fund during the previous fiscal year and shall submit the report on or before December 31, 2018, and annually on or before August 20 thereafter, to August 20 of each year to all of the following:
(1) The Department of Finance. 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 or the resident council of each home. Council.
(5) The administrator of each home.
(f) (e) The department shall maintain a reserve in the MWR Fund of not less than three million dollars ($3,000,000). Veterans’ Home Morale, Welfare, and Recreation Fund in the amount of two million dollars ($2,000,000).
(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 or may hire a third-party investment broker to invest moneys from the MWR Fund consistent 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) (f) The administrator of a home may enter into an agreement with the Veterans’ Home Allied Council an allied council that authorizes the that council to operate facilities and engage in activities that are authorized by subdivision (b). activities authorized pursuant to this section. The agreement shall be in the form and manner as specified by the administrator and in conformity with applicable California law and regulations, including, but not limited to, the state procurement and contracting process. administrator.