BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 585 (Fox) - Department of Veterans Affairs Amended: August 6, 2014 Policy Vote: VA 5-0 Urgency: No Mandate: No Hearing Date: August 14, 2014 Consultant: Maureen Ortiz SUSPENSE FILE. Bill Summary: AB 585 requires the Department of Veterans Affairs to create a prioritized list for the use of unused or underutilized nonresidential real property owned by the department by July 1, 2016. Fiscal Impact: Minor costs to the Department of Veterans Affairs (General Fund) 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 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 AB 585 (Fox) Page 1 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 create a prioritized list for the use of unused or underutilized nonresidential real property owned by the department. The department will be required to propose one or more potential uses of those properties that will benefit California veterans and make a preferred recommendation for use of the property such as housing, supportive services, health care, and mental health care. The list must be completed by July 1, 2016. AB 585 specifies that the department must consider its inventory of properties as an integrated system, and shall address how prospective uses of the properties may complement each other. The list of options shall be structured as 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 contains Legislative Findings and Declarations that further study and evaluation may be necessary after a use option for a given location is identified in order to fully determine the feasibility of that use option and take steps towards its implementation. AB 585 (Fox) Page 2