BILL NUMBER: SB 965 CHAPTERED 08/04/03 CHAPTER 198 FILED WITH SECRETARY OF STATE AUGUST 4, 2003 APPROVED BY GOVERNOR AUGUST 3, 2003 PASSED THE SENATE JULY 21, 2003 PASSED THE ASSEMBLY JULY 21, 2003 AMENDED IN ASSEMBLY JULY 16, 2003 AMENDED IN ASSEMBLY JULY 15, 2003 AMENDED IN ASSEMBLY JULY 3, 2003 INTRODUCED BY Senator Aanestad (Coauthors: Assembly Members Cohn, Dutton, Mountjoy, and Parra) FEBRUARY 21, 2003 An act to add Section 33334.29 to the Health and Safety Code, and to amend Section 1011 of the Military and Veterans Code, relating to veterans, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 965, Aanestad. Veterans' Home of California. (1) The Community Redevelopment Law generally requires redevelopment agencies to use not less than 20% of all tax revenue allocated to the agency for low- and moderate-income housing and requires funds to be used for this purpose to be held in the Low and Moderate Income Housing Fund. The law requires all new or substantially rehabilitated housing developed or otherwise assisted with moneys from the fund, pursuant to a specified agreement, to be subject to specified requirements. This bill would authorize the redevelopment agency for the City of Redding, the County of Shasta, and any other city within the County of Shasta to borrow funds deposited in the agency's Low and Moderate Income Housing Fund to provide financial assistance for the acquisition of property for a veterans' home within the jurisdiction of the agency for the City of Redding. (2) Existing law provides for the establishment and operation of the Veterans' Home of California at various sites for aged and disabled veterans who meet certain eligibility criteria. This bill would require, at each home or home site, an administrator recommended by the Secretary of Veterans Affairs and appointed by the Governor, as specified. The bill would also make technical, nonsubstantive changes to that provision. (3) This bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) That the construction of a new veterans' home in Shasta County is an economic contributor to Shasta County and the state whereby skilled jobs are created and maintained by the construction and operation of the home. (b) There is an established need for a veterans' home located in Shasta County to serve a population over a 12 county area. The construction of a veterans' home located in Shasta County, specifically in the City of Redding, and within one mile of an existing project area will address conditions of economic hardship and address blight within Redding. (c) Due to the limited availability of federal matching funds, it is in the state's interest to secure a qualified site within Shasta County by August 15, 2003, and that the use of redevelopment funds is an appropriate use. SEC. 2. Section 33334.29 is added to the Health and Safety Code, to read: 33334.29. (a) Notwithstanding Sections 33334.2, 33334.3, and 33334.6, the redevelopment agency of the City of Redding, of the County of Shasta, or of any other city located within the County of Shasta, may borrow and use up to two million three hundred thousand dollars ($2,300,000) from its Low and Moderate Income Housing Fund to provide financial assistance for the acquisition of property for a veterans home within the territorial jurisdiction of the agency of the City of Redding. As used in this section, "veterans' home" shall mean a veterans' home authorized pursuant to Division 5 (commencing with Section 1010) of the Military and Veterans Code. (b) Funds borrowed pursuant to subdivision (a) shall be repaid within 15 years from the date they are loaned, with interest at the rate earned from time to time on funds deposited in the State of California Local Agency Investment Fund. The indebtedness created pursuant to this section shall not be considered to meet the requirements imposed by Section 33333.8, and the agency shall comply in full with that section. If a redevelopment agency described in subdivision (a) is required to remit an amount of tax increment funds to the county auditor for deposit in the county's Educational Revenue Augmentation Fund, created pursuant to Article 3 (commencing with Section 97) of Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code, then the time limit on repayment of the funds borrowed pursuant to this section shall be suspended for one year after the funds are remitted to the county auditor. In addition, the agency shall receive and use tax increment funds to pay the loan described in subdivision (a) until the funds borrowed pursuant to subdivision (a) have been fully repaid. The agency may not incur any obligation with respect to loans, advance of money, or indebtedness, or whether funded, refunded, assumed or otherwise, that would impair or delay its ability or capacity to repay the funds loaned pursuant to this section; except that the agency may incur indebtedness against non-Low and Moderate Income Housing Fund moneys if the proceeds of the indebtedness will be used to repay the funds borrowed pursuant to this section. SEC. 3. Section 1011 of the Military and Veterans Code is amended to read: 1011. (a) There is in the department a Veterans' Home of California, Yountville, situated at Veterans' Home, Napa County. (b) (1) The department may establish and construct a second home that shall be situated in the County of Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego, or Ventura. The home may be located on one or more sites. The department shall operate the second home concurrently with the first home. (2) The initial site is the Veterans' Home of California, Barstow, situated in Barstow, San Bernardino County. That site may provide skilled nursing care for up to 250 residents. (3) When completed, the second site shall be the Veterans' Home of California, Chula Vista, situated in Chula Vista, San Diego County, pursuant to the recommendations made by the commission established pursuant to former Section 1011.5. (4) When completed, the third site shall be the Veterans' Home of California, Lancaster, situated in Lancaster, Los Angeles County, pursuant to the recommendations made by the commission established pursuant to former Section 1011.5. (5) When completed, the fourth site shall be the Veterans' Home of California, Ventura, situated in the community of Saticoy, Ventura County. (6) There shall be an administrator for, and located at, each site of the southern California home. (7) The department may complete any preapplication process necessary with the United States Department of Veterans Affairs for construction of the second home. (c) The Legislature hereby finds and declares that the second home is a new state function. The department may perform any or all work in operating the second home by independent contractors, except the overall administration and management of the home. Any and all actions of the department taken before September 17, 1996, that are consistent with this subdivision are hereby ratified and confirmed, it having at all times been the intent of the Legislature that the department be so authorized. (d) There shall be an administrator for each home or homesite, who shall be recommended by the Secretary of Veterans Affairs and appointed by the Governor, and shall be located at that home or homesite. The salary for each administrator shall be subject to the approval of the Department of Personnel Administration. 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 construct new veterans homes as soon as possible, it is necessary that this bill take effect immediately.