BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 585 (Fox) - Department of Veterans Affairs
          
          Amended: January 21, 2014       Policy Vote: VA 5-0
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Maureen Ortiz       
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary:  AB 585 requires the Department of Veterans  
          Affairs to develop a master plan for the use of unused or  
          underutilized nonresidential real property owned by the  
          department by July 1, 2016.

          Fiscal Impact: 

              One-time costs of up to $900,000 (General Fund)

          The Department of Veterans Affairs has identified costs of  
          $77,750 for consultant fees; $487,704 for plan documentation;  
          $60,000 in travel expenses; and $250,000 for an evaluation of  
          the needs of the veteran population within the cities of  
          Lancaster and Ventura.  All of these estimates are based on the  
          costs which have been incurred for the master plan at  
          Yountville, and only include a plan for the remaining seven  
          homes.

          Background:  The Veterans Homes Division, within the Department  
          of Veterans Affairs provides rehabilitative, residential medical  
          care and services in a homelike environment for all veterans and  
          eligible spouses who reside in the state's eight veterans homes.  
           These homes are located in Barstow, Chula Vista, Fresno,  
          Lancaster, Redding, Ventura, West Los Angeles, and Yountville.

          The department's 2012 strategic plan includes an objective to  
          increase utilization of the unused space at the veterans homes  
          through collaborative relationships with nonprofits, veteran  
          service organizations, and private entities.

          In a May 2013 report, the State Auditor reviewed the  
          department's management of the veterans home system and, among  








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          other things, found that the department is underutilizing the  
          space available at the veterans homes.  As a result of that  
          audit, the department revised its strategic plan to include the  
          following goals:

             -       Develop and implement procedures for periodically  
               evaluating all of the veterans homes to identify  
               opportunities to enhance its use of unused space and  
               increase revenue.

             -       Create formal processes for systematically tracking  
               and utilizing unused space, as well as formalizing the  
               evaluation procedure and measures for potential  
               public-private partnerships, and writing procedures to  
               provide periodic measurements of their success.
          Proposed Law:  AB 585 requires the Department of Veterans  
          Affairs to develop a master plan for the use of unused or  
          underutilized nonresidential real property owned by the  
          department, including property on or near the premises of  
          existing department facilities, for purposes that will benefit  
          California veterans.  The master plan must include an evaluation  
          of use options and make a preferred recommendation for use of  
          the property such as housing, supportive services, health care,  
          and mental health care.

          The master plan must be completed by July 1, 2016.  

          AB 585 specifies that the master plan must consider the  
          department's inventory of properties as an integrated system,  
          and shall address how prospective uses of the properties may  
          complement each other.  The plan will also include a prioritized  
          list of projects determined by the department to constitute  
          appropriate uses for the properties identified in the plan. 

          Staff Comments: Existing law requires each state agency to  
          annually review all proprietary state lands over which it has  
          jurisdiction and determine what, if any, land is in excess of  
          its foreseeable needs and report to the Department of General  
          Services.  The report must include the identification of land  
          not currently being used, or current being underutilized by the  
          state agency for any existing or ongoing state program.










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