SB1040 - Veterans Cemetery Maintenance-Endowment Match Act.

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 1040 Introduced by Senator Choi (Coauthors: Senators Alvarado-Gil, Archuleta, Ochoa Bogh, Strickland, and Valladares) (Coauthors: Assembly Members Alanis, Chen, Davies, Garcia, and Jeff Gonzalez) February 11, 2026 An act to add Chapter 10.3 (commencing with Section 1465) to Division 6 of the Military and Veterans Code, relating to veterans. LEGISLATIVE COUNSEL'S DIGEST SB 1040, as introduced, Choi. Veterans Cemetery Maintenance-Endowment Match Act. Existing law requires the Department of Veterans Affairs, in voluntary cooperation with specified local entities, to design, develop, and construct a state-owned and state-operated Northern and Southern California Veterans Cemetery and California Central Coast Veterans Cemetery. Existing law requires the department to oversee and coordinate the design, development, and construction of these cemeteries. Existing law requires the department to adopt regulations to specify the eligibility requirements for interment in one of these cemeteries. This bill would require the department to establish and administer a state and local matching funds program for veterans cemetery maintenance funds by requiring that for $1 contributed locally by individuals, veterans’ service organizations, local governments, or private donors, the state would contribute $1 in matching funds, up to $250,000 per veterans cemetery per fiscal year. The bill would require a veterans cemetery to apply to the department to be part of the program, and would require the department to, among other things, review the applications annually. The bill would establish the Veterans Cemetery Maintenance-Endowment Account in the General Fund that would be administered by the department. The bill would require moneys in the account to be allocated, upon appropriation by the Legislature, to the department for distribution to a veterans cemetery. The bill would require the department to provide to the Legislature a report summarizing all participating veterans cemeteries, total state matches, and fund performance. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Chapter 10.3 (commencing with Section 1465) is added to Division 6 of the Military and Veterans Code, to read: CHAPTER 10.3. Veterans Cemetery Maintenance-Endowment Match Act 1465. (a) The department shall establish and administer a state-local matching funds program to strengthen the financial sustainability of veterans cemetery maintenance funds. (b) The program shall require that for every dollar ($1) contributed locally by individuals, veterans service organizations, local governments, or private donors, the state would contribute one dollar ($1) in matching funds, up to $250,000 per veterans cemetery per fiscal year. (c) To be a part of the program, a veterans cemetery shall apply to the department. (d) The department shall do all of the following: (1) Create an application process. (2) Review applications annually. (3) Certify that deposits were made to a veterans maintenance endowment. (4) Transfer matching funds into the same account. (5) Conduct a five-year program review. (e) The department shall require each participating veterans cemetery to submit an annual maintenance and condition report, including balance sheets, expenditures, and deferred maintenance backlog estimates. 1466. (a) The Veterans Cemetery Maintenance-Endowment Account is hereby established in the General Fund and shall be administered by the department. (b) Moneys in the account shall be allocated, upon appropriation by the Legislature, to the department for distribution pursuant to Section 1465. 1467. (a) The department shall provide to the Legislature a report summarizing all participating veterans cemeteries, total state matches, and fund performance. (b) The report shall be submitted in compliance with Section 9795 of the Government Code. 1468. Matching funds shall only be available for the maintenance of state, federal, or tribal veterans cemeteries in California.