BILL NUMBER: SB 630 CHAPTERED 10/10/99 CHAPTER 728 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 7, 1999 PASSED THE SENATE SEPTEMBER 10, 1999 PASSED THE ASSEMBLY SEPTEMBER 10, 1999 AMENDED IN ASSEMBLY SEPTEMBER 10, 1999 AMENDED IN ASSEMBLY AUGUST 31, 1999 AMENDED IN ASSEMBLY AUGUST 26, 1999 AMENDED IN SENATE JUNE 30, 1999 AMENDED IN SENATE JUNE 24, 1999 AMENDED IN SENATE MAY 18, 1999 AMENDED IN SENATE APRIL 26, 1999 INTRODUCED BY Senator Dunn (Principal coauthors: Senators Baca, Chesbro, Johannessen, and Knight) (Principal coauthor: Assembly Member Machado) (Coauthors: Senators Costa and Speier) (Coauthors: Assembly Members Alquist, Bock, Cardoza, Correa, Dickerson, Ducheny, Havice, Honda, Knox, Longville, Lowenthal, Mazzoni, Nakano, Romero, Scott, Soto, Strom-Martin, Wayne, Wildman, Davis, Kuehl, and Wiggins) FEBRUARY 24, 1999 An act to amend Section 15819.90 of the Government Code, and to add Chapter 2 (commencing with Section 1100) to Division 5 of the Military and Veterans Code, relating to veterans' homes, by providing the funds necessary therefor through an election for, and the issuance and sale of, bonds of the State of California and by providing for the handling and disposition of those funds, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 630, Dunn. Veterans' homes. Existing law establishes a Veterans' Home of California, Yountville, and authorizes the Department of Veterans Affairs to establish and construct a 2nd home located at Barstow and on 3 additional sites in southern California. Existing law authorizes the California Veterans Board to issue revenue bonds, negotiable notes, or negotiable bond anticipation notes for the construction of homes at these 3 additional locations. This bill would enact the Veterans' Homes Bond Act of 2000 which, upon approval of the state electorate, would authorize, for purposes of financing a plan for the design and construction of veterans' homes in the state, the issuance, pursuant to the State General Obligation Bond Law, of bonds in the amount of $50,000,000. This bill would give first priority to funding construction or renovation of the veterans' homes described in specified provisions of existing law. The bill would provide for submission of these provisions to the voters at the March 7, 2000, statewide primary election in accordance with specified law. Upon the adoption by the voters at the March 7, 2000, statewide primary election of the Veterans' Bond Act of 2000, as specified above, the bill also would limit the existing authority to issue revenue bonds, negotiable notes, or negotiable bond anticipation notes as described above, to the issuance of those bonds and notes only for the construction of the veterans home at the 2nd site after the construction of the 1st site at Barstow is completed and opened. 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. (a) The Legislature hereby finds and declares as follows: (1) The state has opened veterans' homes in the following areas: (A) Yountville, Napa County, in 1884, which is home to 1125 veterans and is a California State Historical Landmark listed in the California Register of Historical Places. (B) Barstow, San Bernardino County, in 1996, which is home to 400 veterans. (2) A veterans' home is under construction in Chula Vista, San Diego County, which will be home to 400 veterans. (3) There are plans to construct veterans' homes in Lancaster, Los Angeles County, and in Saticoy, Ventura County. (4) California's Department of Veterans Affairs forecasts a state and federal need of eighty-nine million eight hundred thousand dollars ($89,800,000) to construct veterans' homes in California over the next 10 years. (5) The department anticipates the need for at least two additional veterans' homes within the next decade. (6) There are more than 3,000,000 veterans who live in the state. (7) Recent studies show that the number of veterans who qualify to reside in veterans' homes will increase over the next decade. (8) The general policy of the department is to not accept veterans into existing veterans' homes who suffer from Alzheimer's disease or other diseases causing dementia. (b) It is the intent of the Legislature, in enacting this bill, to do all of the following: (1) Place on the November 7, 2000, general election ballot, a fifty million dollar ($50,000,000) bond act for the construction of veterans' homes in California. (2) Expand the state's policy to accept into the veterans' homes those veterans who suffer from Alzheimer's disease or other diseases causing dementia. (3) Set a goal of at least 3 percent of the construction contracts for these homes to be awarded to disabled veteran business enterprises. SEC. 1.5. Section 15819.90 of the Government Code is amended to read: 15819.90. (a) It is the intent of the Legislature to make an appropriation for three additional sites of the Southern California Veterans' Home, for a total of four sites. (b) (1) (A) The board shall issue revenue bonds, negotiable notes, or negotiable bond anticipation notes pursuant to Chapter 5 (commencing with Section 15830) to finance the construction of an additional site of the Southern California Veterans' Home only in accordance with subparagraph (B). (B) Authorization and bond issuance for the second site shall take place after the department certifies that the construction of the first site, the veterans' home at Barstow, as set forth in Section 15819.85, has been completed and opened, and demonstrates to the State Public Works Board that the facility is fully operational and that there is a demonstrated demand for a second site. (2) The second, third, and fourth sites shall be in addition to the first site provided for in Section 15819.85. (c) The amount of revenue bonds, negotiable notes, or negotiable 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 twelve million dollars ($12,000,000). This amount shall be available as necessary for the site studies, suitability reports, environmental studies, master planning, architectural programming, schematics, preliminary plans, working drawings, construction, and equipment of site two of the Southern California Veterans Home. These funds shall also be used for repayment of any loan made pursuant to former Section 15819.90, as added by Chapter 943 of the Statutes of 1995, for costs related to the first and second sites. (d) In addition to the funds appropriated pursuant to subdivision (g), the sum of sixty-six million dollars ($66,000,000) in federal matching funds available pursuant to the State Veterans' Home Assistance Improvement Act of 1977 (38 U.S.C.A. Sec. 8131 et seq.), is hereby appropriated to the board on behalf of the Department of Veterans Affairs for the purposes of construction or repayment of any loan related to the second, third, and fourth sites of the Southern California Veterans' Home. In the event that bonds are not issued or sold, any loans for the purposes of this section or former Section 15819.90, shall be repaid from the department's annual support appropriations. (e) 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 (c), and any additional amounts, as specified in subdivision (h). (f) The amount of negotiable bond anticipation notes to be sold pursuant to this section shall not exceed the amount of revenue bonds or negotiable notes authorized by this section. (g) Notwithstanding Section 13340, funds derived for the purposes of this section from the financing methods of Chapter 5 (commencing with Section 15830) are hereby appropriated, without regard to fiscal year, to the board on behalf of the Department of Veterans Affairs for the construction or repayment of any loans related to the second site of the Southern California Veterans' Home. (h) The State Public Works Board may borrow funds for all phases of the projects from the Pooled Money Investment Account pursuant to Sections 16212 and 16313, and any other legal fund sources. (i) The board may authorize the augmentation of the cost of the construction of the sites 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 pay the costs of financing, including, but not limited to, the payment of interest during construction of the sites, any additional amount as may be authorized by the board to pay the cost of financing a reasonably required reserve fund, interest payable on any interim loan for the homes from the Pooled Money Investment Account pursuant to Section 16312, and the costs of issuance of permanent financing of the sites. Notwithstanding subdivision (d) of Section 13332.11, the board shall defer all augmentations in excess of 10 percent of the amount appropriated for each capital outlay project until the Legislature makes additional funds available for the specific project. (j) The Department of Veterans Affairs is hereby authorized to enter into any lease agreement with the State Public Works Board necessary to achieve completion of the construction phase of the second, third, and fourth Southern California Veterans' Home project sites. The Director of Veterans Affairs shall notify the Chairperson of the Joint Legislative Budget Committee of the director's intention to execute any lease agreement authorized by this section at least 45 days prior to its execution. SEC. 2. Chapter 2 (commencing with Section 1100) is added to Division 5 of the Military and Veterans Code, to read: CHAPTER 2. VETERANS' HOMES BOND ACT OF 2000 Article 1. General Provisions 1100. This chapter shall be known, and may be cited, as the Veterans' Homes Bond Act of 2000. 1102. As used in this chapter, the following terms have the following meaning: (a) "Board" means the Department of Veterans Affairs designated in accordance with subdivision (b) of Section 1108. (b) "Committee" means the Veterans' Home Finance Committee created pursuant to subdivision (a) of Section 1108. (c) "Fund" means the Veterans' Home Fund created pursuant to Section 1103. Article 2. Veterans' Homes 1103. The proceeds of bonds issued and sold pursuant to this chapter shall be deposited in the Veterans' Home Fund, which is hereby created in the State Treasury. 1104. (a) Upon appropriation by the Legislature, money in the fund shall be used by the Department of Veterans Affairs for the purpose of designing and constructing veterans' homes in California and completing a comprehensive renovation of the Veterans' Home at Yountville. Funding from this bond shall be allocated to fund the state's matching requirement to construct or renovate those veterans' homes in Section 1011 first, and then fund any additional homes established under this section. These homes shall be in addition to sites authorized under Section 1011. (b) Notwithstanding any other provision of law, construction contracts awarded for veterans' homes shall have a statewide participation goal of not less than 3 percent for disabled veteran business enterprises, as defined in subdivision (g) of Section 999. Article 3. Fiscal Provisions 1105. The proceeds of bonds issued and sold pursuant to this chapter shall be deposited in the State Treasury to the credit of the Veterans' Home Fund, created by Section 1103. 1106. Bonds in the total amount of fifty million dollars ($50,000,000), not including the amount of any refunding bonds issued in accordance with Section 1130, or as much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this chapter and to be used and sold for carrying out the purposes of Section 1104 and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall be and shall constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both the principal of, and interest on, the bonds as the principal and interest become due and payable. 1107. The bonds authorized by this chapter shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), and all of the provisions of that law apply to the bonds and to this chapter and are hereby incorporated in this chapter as though set forth in full in this chapter. 1108. (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this chapter, the Veterans' Home Finance Committee is hereby created. For purposes of this chapter, the Veterans' Home Finance Committee is "the committee" as that term is used in the State General Obligation Bond Law. The committee consists of the Treasurer, the Controller, the Director of Finance, and the Secretary of Veterans Affairs, or their designated representatives. The Treasurer shall serve as chairperson of the committee. A majority of the committee may act for the committee. (b) For purposes of the State General Obligation Bond Law, the Department of Veterans Affairs is designated the "board." 1109. The committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this chapter in order to carry out the actions specified in this chapter and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time. 1110. There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds maturing each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum. 1111. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this chapter, an amount that will equal the total of the following: (a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable. (b) The sum necessary to carry out Section 1112 appropriated without regard to fiscal years. 1112. The Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this chapter. Any amount withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund, plus an amount equal to the interest that the money would have earned in the Pooled Money Investment Account, from money received from the sale of bonds for the purpose of carrying out this chapter. 1113. The Department of Veterans Affairs may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account in accordance with Section 16312 of the Government Code for the purposes of carrying out this chapter. The amount of the request shall not exceed the amount of the unsold bonds that the committee, by resolution, has authorized to be sold for the purpose of carrying out this chapter. The department shall execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the department in accordance with this chapter. 1114. All money deposited in the fund that is derived from premium and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. 1115. The bonds may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds described in this chapter includes the approval of the issuance of any bonds issued to refund any bonds originally issued under this chapter or any previously issued refunding bonds. 1116. Notwithstanding any provision of this chapter or the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this chapter that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes, subject to designated conditions, the Treasurer may maintain separate accounts for the investment of bond proceeds and the investment earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or to take any other action with respect to the investment and use of bond proceeds required or desirable under federal law to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state. 1117. The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this chapter are not "proceeds of taxes" as that term is used in Article XIIIB of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. SEC. 2.5. Section 1.5 of this act shall become operative only if the voters approve the Veterans' Homes Bond Act of 2000, as set forth in Section 2 of this act, at the March 7, 2000, statewide primary election. SEC. 3. Chapter 2 (commencing with Section 1100) of Division 5 of the Military and Veterans Code, as added by Section 2 of this act, shall become effective upon the adoption by the voters of the Veterans' Homes Bond Act of 2000, as set forth in Section 2 of this act. SEC. 4. (a) The Secretary of State shall submit Chapter 2 (commencing with Section 1100) of Division 5 of the Military and Veterans Code (the Veterans' Homes Bond Act of 2000), as set forth in Section 2 of this act, to the voters at the March 7, 2000, statewide direct primary election. (b) The Secretary of State shall ensure the placement of Chapter 2 (commencing with Section 1100) of Division 5 of the Military and Veterans Code (the Veterans' Homes Bond Act of 2000), as set forth in Section 2 of this act, on the March 7, 2000, statewide direct primary election ballot. (c) The Secretary of State shall include, in the ballot pamphlets mailed pursuant to Section 9094 of the Elections Code, the information specified in Section 9084 of the Elections Code regarding the bond act contained in Chapter 2 (commencing with Section 1100) of Division 5 of the Military and Veterans Code (the Veterans' Homes Bond Act of 2000), as set forth in Section 2 of this act. If that inclusion is not possible, the Secretary of State shall publish a supplemental ballot pamphlet regarding Chapter 2 (commencing with Section 1100) of Division 5 of the Military and Veterans Code (the Veterans' Homes Bond Act of 2000), as set forth in Section 2 of this act, to be mailed with the ballot pamphlet. If the supplemental ballot pamphlet cannot be mailed with the ballot pamphlet, the supplemental ballot pamphlet shall be mailed separately. SEC. 5. (a) Notwithstanding any other provision of law, with respect to the Veterans' Homes Bond Act of 2000, all ballots of the election shall have printed thereon and in a square thereof, exclusively, the words "Veterans' Homes Bond Act of 2000" (At this point, the Attorney General shall include the financial impact summary prepared pursuant to Section 9087 of the Elections Code and Section 88003 of the Government Code). Opposite the square, there shall be left spaces in which the voters may place a cross in the manner required by law to indicate whether they vote for or against the act. (b) Notwithstanding Sections 13247 and 13281 of the Elections Code, the language in subdivision (a) shall be the only language included in the ballot label for the condensed statement of the ballot title, and the Attorney General shall not supplement, subtract from, or revise that language, except that the Attorney General may include the financial impact summary prepared pursuant to Section 9087 of the Elections Code and Section 88003 of the Government Code. The ballot label is the condensed statement of the ballot title and the financial impact summary. (c) Notwithstanding Section 13282 of the Elections Code, the public shall be permitted to examine the condensed statement of the ballot title in subdivision (a) for not more than eight days, and the financial impact statement from the time it is received by the Secretary of State until the end of the eight days. Any voter may seek a writ of mandate for the purpose of requiring any statement of the ballot label, or portion thereof, to be amended or deleted only within that eight-day period. (d) Where the voting in the election is done by means of voting machines used pursuant to law in a manner that carries out the intent of this section, the use of the voting machines and the expression of the voter's choice by means thereof are in compliance with this section. SEC. 6. 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.