BILL NUMBER: SB 1234 CHAPTERED BILL TEXT CHAPTER 217 FILED WITH SECRETARY OF STATE AUGUST 14, 2002 APPROVED BY GOVERNOR AUGUST 14, 2002 PASSED THE SENATE AUGUST 8, 2002 PASSED THE ASSEMBLY AUGUST 1, 2002 AMENDED IN ASSEMBLY JUNE 28, 2002 AMENDED IN ASSEMBLY JUNE 25, 2002 AMENDED IN ASSEMBLY JUNE 12, 2002 AMENDED IN SENATE MAY 28, 2002 AMENDED IN SENATE MAY 8, 2002 AMENDED IN SENATE APRIL 18, 2002 INTRODUCED BY Senator Johannessen (Principal coauthor: Assembly Member Aanestad) (Coauthors: Assembly Members Briggs, Runner, Wesson, and Wyman) JANUARY 7, 2002 An act to add Chapter 3.3 (commencing with Section 15819.60) to Part 10b of Division 3 of Title 2 of the Government Code, relating to veterans' homes, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 1234, Johannessen. Veterans' homes. Existing law, the "State Building Construction Act of 1955," authorizes the State Public Works Board to acquire or construct public buildings and to issue revenue bonds, negotiable notes, and negotiable bond anticipation notes to finance that construction. This bill would authorize the State Public Works Board to issue lease-revenue bonds, notes, or bond anticipation notes pursuant to the State Building Construction Act of 1955 to finance the acquisition, design, construction, renovation, or expansion of veterans' homes at Yountville, Barstow, Chula Vista, Lancaster, Saticoy, and West Los Angeles, and in Fresno County and Shasta County, as provided. It would continuously appropriate these funds to the board on behalf of the Department of Veterans' Affairs for this purpose. This bill would specify the amount of authorized capital outlay for the project. The bill would condition any issuance of bonds or notes for these purposes on a commitment from the federal government to pay for the federal matching share of the cost of the design, construction, renovation, or expansion of these homes. This bill would make various legislative findings and declarations regarding these provisions. This bill would provide that it would become operative only if AB 2559, AB 2953, and SB 1773 are enacted and become effective on or before January 1, 2003. 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. The Legislature finds and declares all of the following: (a) With respect to veterans in general, the Legislature finds and declares all of the following: (1) Over 1,000 United States veterans who fought in World War II die every day. (2) More veterans live in California than in any other state in the nation. Of the nation's 25,229,000 veterans, 2,367,700 of them live in California, or 9.3 percent. Additionally, 596,500 more veterans live in California than in any other state in the nation. (3) California has been identified by the United States Department of Veterans Affairs as one of the three states with a "great need" for veterans' homes. The fiscal year 2002 United States Department of Veterans Affairs veterans' home bed analysis lists the current need in California as 3,167 beds. (4) The highest concentration of veterans are in the 53 to 58 years age range and are Vietnam-era veterans. There are approximately 800,000 Vietnam-era veterans in California who may need care soon. (5) There are presently 430,800 Korean War-era veterans between the ages of 66 and 75 years in California who are at the prime age to receive care now. (6) Approximately 18 million of the United States' 25 million veterans served the country during wartime. (b) With respect to a veterans' home in Fresno County, the Legislature finds and declares all of the following: (1) The Governor's Commission on California Veterans' Homes recommends that Fresno County be placed on the priority list for the construction of a veterans' home. (2) Twelve percent of the veteran population of California resides in the Central Valley. Because of demographics and a lack of services for veterans, the San Joaquin Valley needs a veterans' home. (3) Fresno County is the site of one of the federal Department of Veterans Affairs medical centers and, therefore, has access to skilled medical professionals. Yet, Fresno County is in an area not served by any present or proposed veterans' home. (c) With respect to a veterans' home at Redding in Shasta County, the Legislature finds and declares all of the following: (1) The Governor's Commission on California Veterans' Homes recommends that the state build a veterans' home at Redding in Shasta County to serve the needs of the 12 northern counties. The veterans in the northern California area have demonstrated the need for services and deserve a veterans' home. (2) Geography dictates that some areas in northern California are so removed from the central population core that it places those individuals living there at a hardship. The Governor's Commission on California Veterans' Homes has concluded that it is necessary to address the needs of the veterans in northern California. Many veterans in the area are located far from any services and, thus, must travel long distances to obtain any care from the veterans' service network. SEC. 2. Chapter 3.3 (commencing with Section 15819.60) is added to Part 10b of Division 3 of Title 2 of the Government Code, to read: CHAPTER 3.3. FINANCING OF CALIFORNIA VETERANS' HOMES 15819.60. (a) The Department of General Services, on behalf of the Department of Veterans Affairs, may construct and establish additional veterans' homes to be located in Fresno County and Shasta County. (b) The Department of General Services, on behalf of the Department of Veterans Affairs, may renovate the veterans' homes at Yountville, Barstow, and Chula Vista, as needed and justified. (c) The Department of General Services, on behalf of the Department of Veterans Affairs, may expand the homes proposed to be built at Lancaster, Saticoy, and West Los Angeles, as needed and justified. (d) The construction of veterans' homes in Fresno County and Shasta County may not commence until the veterans' homes in Lancaster, Saticoy, and West Los Angeles have been fully funded. (e) The veterans' homes to be constructed in Fresno County and Shasta County may be built concurrently. 15819.65. (a) (1) The State Public Works Board may issue lease-revenue bonds, notes, or bond anticipation notes pursuant to Chapter 5 (commencing with Section 15830) of Part 10b of Division 3 of Title 2 of the Government Code to finance the acquisition, design, construction, renovation, or expansion of the veterans' homes specified in Section 15819.60. (2) The issuance of bonds or notes under this section is contingent upon a commitment from the federal government to pay for the federal matching share of the cost of the design, construction, renovation, or expansion of the veterans' homes specified in Section 15819.60. (b) The amount of lease-revenue bonds, notes, or bond anticipation notes to be sold pursuant to Chapter 5 (commencing with Section 15830) for capital outlay for this purpose shall not exceed the sum of sixty-two million dollars ($62,000,000). This amount shall be available, in addition to any federal funds available, as necessary for the construction, renovation, or expansion of the veterans' homes, site studies, suitability reports, environmental studies, master planning, architectural programming, schematics, preliminary plans, working drawings, construction, and equipment. (c) The amount of revenue bonds, negotiable notes, or negotiable bond anticipation notes to be sold shall equal the costs of performance of all functions referred to in subdivision (b), and any additional amounts, as specified in subdivision (g). (d) The amount of negotiable bond anticipation notes to be sold shall not exceed the amount of revenue bonds or negotiable notes authorized by this chapter. (e) Notwithstanding Section 13340, funds derived for the purposes of this chapter from the financing methods pursuant to Chapter 5 (commencing with Section 15830) for the acquisition, design, construction, renovation, or expansion of the veterans' homes are hereby continuously appropriated to the board on behalf of the Department of Veterans Affairs for the acquisition, design, construction, renovation, expansion, or refinancing of the veterans' homes so financed. In addition to the funds appropriated pursuant to this section, the federal matching funds available pursuant to the State Veterans' Home Assistance Improvement Act of 1977 (38 U.S.C. Sec. 8131 et seq.), are hereby continuously appropriated to the board on behalf of the Department of Veterans Affairs for the purposes of design, construction, renovation, expansion, or repayment of any loan related to the projects specified in Section 15819.60. (f) The State Public Works Board and the Department of Veterans Affairs may obtain interim financing for the project costs authorized in Section 15819.60 from any appropriate source, including, but not limited to, the Pooled Money Investment Account pursuant to Sections 16312 and 16313 of the Government Code. (g) The board may authorize the augmentation of the acquisition, design, and cost of the construction, renovation, or expansion of the homes set forth in this chapter pursuant to the board's authority under Section 13332.11. In addition, the board may authorize any additional amounts necessary to establish a reasonable construction reserve and to pay the cost of financing, including, but not limited to, the payment of interest during the design and construction of the projects, the costs of financing a debt service fund, and the cost of issuance of permanent financing for the projects. This additional amount may include interest payable on any interim financing obtained. (h) The Department of Veterans Affairs is authorized and directed to execute and deliver any and all leases, contracts, agreements, or other documents necessary or advisable to consummate the sale of bonds or otherwise effectuate the financing of the scheduled projects. (i) In the event that the bonds authorized for projects in Section 15819.60 are not sold, the Department of Veterans' Affairs shall commit a sufficient portion of its support appropriation, as determined by the Department of Finance, to repay any interim financing. It is the intent of the Legislature that this commitment be made until all interim financing is repaid either through the proceeds from the sale of bonds or from an appropriation. (j) The State Public Works Board shall not itself be deemed a lead or responsible agency for purposes of the California Environmental Quality Act (commencing with Section 21000 of the Public Resources Code) for any activities under the State Building Construction Act of 1955 (commencing with Section 15800 of the Government Code). This subdivision does not exempt any participating agency or department from the requirements of the California Environmental Quality Act, and is intended to be declarative of existing law. SEC. 3. This act shall become operative only if AB 2559, AB 2953, and SB 1773 are enacted and become effective on or before January 1, 2003. SEC. 4. 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 provide adequate facilities for the care of California' s veterans at the earliest possible time, it is necessary for this act to take effect immediately.