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 AB 585 (Fox) Page 1 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. AB 585 (Fox) Page 2