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AB-1500 Elders Living with Dignity, Empathy, Respect, and Support (ELDERS) Bond Act.(2017-2018)

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Date Published: 01/11/2018 09:00 PM
AB1500:v97#DOCUMENT

Amended  IN  Assembly  January 11, 2018
Amended  IN  Assembly  January 03, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1500


Introduced by Assembly Member Maienschein
(Coauthor: Assembly Member Baker)(Coauthors: Assembly Members Baker and Gipson)

February 17, 2017


An act to add Chapter 9.3 (commencing with Section 9610) to Division 8.5 of the Welfare and Institutions Code, relating to facilities for the elderly, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


AB 1500, as amended, Maienschein. Elders Living with Dignity, Empathy, Respect, and Support (ELDERS) Bond Act.
Existing state and federal law provides for various programs to provide services to elderly persons, as specified. Existing law provided for submission to the voters of the Senior Center Bond Act of 1984.
This bill would provide for submission to the voters of the Elders Living with Dignity, Empathy, Respect, and Support (ELDERS) Bond Act of ____. 2020. The bill would provide that, if enacted by the people, the state would be authorized to issue and sell general obligation bonds in the aggregate amount of $200,000,000. The proceeds of these bonds would be placed in a fund, which would be appropriated to the Controller, without regard to fiscal years, for allocation, at the request of the Treasurer. The bill would provide that money in the fund would be allocated to public or private nonprofit agencies or organizations for the purpose of acquiring, renovating, constructing, or purchasing equipment for, specialized day services centers for adults with complex chronic medical, cognitive, or behavioral health conditions, including, but not limited to, Alzheimer’s disease or related dementias, funding startup costs of eligible facilities, or program expansion of eligible facilities, as specified. The bill would make legislative findings and declarations relating to California’s senior population.
The bill would provide for submission of the bond act to the voters at the general statewide election occurring on ____. November 3, 2020.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Chapter 9.3 (commencing with Section 9610) is added to Division 8.5 of the Welfare and Institutions Code, to read:
CHAPTER  9.3. Elders Living with Dignity, Empathy, Respect, and Support (ELDERS) Bond Act of ____ 2020

9610.
 This chapter shall be known, and may be cited, as the Elders Living with Dignity, Empathy, Respect, and Support (ELDERS) Bond Act of ____. 2020.

9611.
 The Legislature finds and declares all of the following:
(a) California supports the dignity and independence of seniors and persons with disabilities and their choice to live in the most integrated setting appropriate, in their own home or community-based setting, and to be free from unnecessary institutionalization.
(b) In 2016, the Legislative Analyst’s Office reported that seniors represented 13 percent of California’s population, but by 2060 seniors are projected to represent 24 percent, or one in four, of California’s population.
(c) Over this period, the senior population is projected to increase more than twofold, from 5.2 million to 12.2 million, while the population under 65 years of age is projected to grow only 17 percent, from 33.7 million to 39.5 million.
(d) The largest growth of seniors during this period is projected to occur among the population 85 years of age or older. That number is expected to increase over threefold, from about 700,000 in 2015 to over 2.5 million in 2060. Age is a factor in rates of disability, with persons 85 years of age or older experiencing higher rates of disability than persons 65 to 84 years of age, inclusive.
(e) By 2030, California’s senior population is projected to shift from being majority white to majority non-white. Rates of disability vary by race and this projected shift in demographics is likely to have an impact on the number of seniors with disabilities in California.
(f) More than 6 million adults in California provided informal care for a family member or a friend in 2009. The ratio of working-age Californians to seniors is projected to decrease roughly 50 percent from 2015 to 2060, impacting both formal and informal caregiving availability.
(g) Evidence indicates that informal caregivers face significant negative physical and emotional health outcomes and economic burdens.
(h) In contrast to the explosive growth of seniors and persons with disabilities, over the past decade, long-term services and supports (LTSS) programs and services have been eliminated, closed, or eroded, leaving a majority of California counties without community-based options.
(i) Today, California confronts a crisis of inadequate program capacity and insufficient infrastructure, requiring urgent action to meet the current demand and the projected growth in the population seeking alternatives to institutional care.
(j) It is in California’s interest to invest in a public-private partnership to promote the startup or expansion of person-centered, community-based day programs that serve the needs of a broad range of persons from low to upper-middle incomes, inclusive.
(k) Such investment supports consumer choice to receive services in his or her own neighborhood, improves quality of life and independence, blends public and personal funds, improves access to affordable care, and avoids significantly higher taxpayer costs associated with nursing home placement.

9612.
 For purposes of this chapter, the following definitions apply:
(a) “Acquiring” means obtaining ownership of an existing facility in fee simple or by lease for 10 years or more for use as an eligible facility.
(b) “Bond” means a state general obligation bond issued pursuant to this chapter adopting the provisions of 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).
(c) “Committee” means the Elders Living with Dignity, Empathy, Respect, and Support (ELDERS) Finance Committee.
(d) “Constructing” means building a new facility, including the costs of land acquisition and architectural, local and state permitting or licensing fees, and engineering fees.
(e) “Eligible facility” means a licensed nonprofit facility, as described in paragraph (2) of subdivision (a) of Section 1502 of, or Chapter 3.3 (commencing with Section 1570) of Division 2 of, the Health and Safety Code, or Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code, that is developed to provide specialized day services for adults with complex chronic medical, cognitive, or behavioral health conditions, including, but not limited to, Alzheimer’s disease or related dementias.
(f) “Equipment” means tangible personal property having a useful life of more than two years.
(g) “Fund” means the Elders Living with Dignity, Empathy, Respect, and Support (ELDERS) Bond Act Fund.
(h) “Nonprofit” means a public agency, or an institution or organization that is owned and operated by one or more corporations or associations with no part of the net earnings benefiting any private shareholder or individual.
(i) “Renovating” means making modifications to an existing facility that are necessary for cost-effective use as an eligible facility, including restoration, repair, expansion, and all related physical improvements.
(j) “Startup costs” means a one-time capital outlay to fund programs in a newly constructed eligible facility, a one-time capital outlay to fund additional programs or services in an existing eligible facility, or initial service delivery costs for a period of up to two years.

9613.
 There is hereby created the Elders Living with Dignity, Empathy, Respect, and Serenity (ELDERS) Bond Act Fund, which is comprised of moneys collected pursuant to the issuance and sale of bonds pursuant to this chapter. The fund is hereby appropriated to the Controller, without regard to fiscal years, for allocation, upon the request of the Treasurer, for the purposes specified in this chapter.

9614.
 The Treasurer shall make awards from funds derived from this bond act to public or private nonprofit agencies or organizations for the purpose of acquiring, renovating, constructing, or purchasing equipment for, specialized day services centers for adults with complex chronic medical, cognitive, or behavioral health conditions, including, but not limited to, Alzheimer’s disease or related dementias, funding startup costs of eligible facilities, or program expansion of eligible facilities.

9615.
 Eligible applicants for funding under this chapter include local government entities or other nonprofit private agencies or organizations. Priority shall be given to qualified applicants in unserved or underserved geographic areas.

9616.
 (a) A recipient of a contract for the acquisition of a facility to be used for the purpose described in Section 9614 shall ensure to the Treasurer that the facility will be used for that purpose for at least 10 years from the date of acquisition.
(b) A recipient of a contract for the renovation of an existing facility to be used as an eligible facility shall ensure to the Treasurer that the facility will be used for that purpose for the following periods:
(1) Not less than three years from the date the contract terminates, where the amount of the award does not exceed five hundred thousand dollars ($500,000).
(2) If the award exceeds five hundred thousand dollars ($500,000), the fixed period of time shall increase one year for each additional five hundred thousand dollars ($500,000) or part thereof, to a maximum of ____.
(3) For awards that exceed ____, the fixed period of time shall not be less than 10 years.
(c) A recipient of a contract for the construction of a facility to be used for the purpose described in Section 9614 shall ensure to the Treasurer that the facility will be used for that purpose for at least 20 years after completion of construction.
(d) Construction and renovation projects paid for in whole or in part with funds from the bond issued under this chapter are public works for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.

9617.
 (a) The State of California shall be entitled to recapture a portion of state funds from the owner of a facility, if within 10 years after acquisition or 20 years after completion of construction, either of the following occurs:
(1) The owner of the facility ceases to be a public or private nonprofit agency or organization.
(2) The facility is no longer used for activities specified for eligible facilities.
(b) The amount to be recovered shall be that proportion of the current value of the facility equal to the proportion of state funds contributed to the original cost. The current value of the facility shall be determined by an agreement between the owner of the facility and the State of California, or by an action in the court in the jurisdiction in which the facility is located.

9618.
 The Treasurer shall seek the advice of stakeholders on the request for proposal and the criteria for reviewing and evaluating the responses.

9619.
 The Treasurer shall adopt policies and guidelines to carry out the purposes of this chapter, and the adoption thereof shall be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

9620.
 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) is adopted for the purpose of the issuance, sale, and repayment of, and otherwise providing with respect to, the bonds authorized to be issued pursuant to this chapter, and the provisions of that law, except subdivisions (a) and (b) of Section 16727 of the Government Code, are included in this chapter as though set out in full in this chapter.

9621.
 (a) For the purpose of authorizing the issuance and sale, pursuant to 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), of the bonds authorized in this chapter, the Elders Living with Dignity, Empathy, Respect, and Support (ELDERS) Finance Committee is hereby created. The committee consists of the Treasurer, the Controller, the Director of Finance, and a representative of the California Health and Human Services Agency.
(b) The committee is hereby authorized and empowered to create a debt or debts, liability or liabilities, of the State of California, in the aggregate amount of two hundred million dollars ($200,000,000), in the manner provided in this chapter. The debt or debts, liability or liabilities shall be created for the purpose of acquiring, renovating, constructing, or purchasing equipment for, specialized day services for adults with complex chronic medical, cognitive, or behavioral health conditions, including, but not limited to, Alzheimer’s disease or related dementias, funding startup costs of eligible facilities, or program expansion of eligible facilities.
(c) When sold, the bonds authorized by this chapter shall constitute valid and legally binding general obligations 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 principal and interest thereon.
(d) There shall be collected annually in the same manner and at the same time as other state revenue is collected such a sum, in addition to the ordinary revenues of the state, as shall be required to pay the interest and principal on the bonds maturing each year, and it is hereby made 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 shall be necessary to collect that additional sum.
(e) All money deposited in the fund that has been derived from premium and accrued interest on bonds sold shall be available for transfer to the General Fund as a credit to expenditures for bond interest.
(f) All money deposited in the fund pursuant to any provision of law requiring repayments to the state for assistance financed by the proceeds of the bonds authorized by this chapter shall be available for transfer to the General Fund. When transferred to the General Fund, this money shall be applied as a reimbursement to the General Fund on account of principal and interest on the bonds that have been paid from the General Fund.

9622.
 Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury for the purpose of this chapter, such an amount as will be equal to the following:
(a) That sum annually as will be necessary to pay the principal of and the interest on the bonds issued and sold pursuant to the provisions of this chapter, as principal and interest become due and payable.
(b) That sum as is necessary to carry out the provisions of Section 9621, which sum is appropriated without regard to fiscal years.

9623.
 (a) For purposes of carrying out this chapter, the Director of Finance may by executive order authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds that the committee has by resolution authorized to be sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be deposited in the fund and shall be disbursed by the department in accordance with this chapter. These withdrawals from the General Fund shall be returned to the General Fund with interest at the rate that would have otherwise been earned by these sums in the Pooled Money Investment Account.
(b) The committee may authorize the Treasurer to sell all or any part of the bonds authorized by this chapter at the time or times as may be fixed by the Treasurer.
(c) All proceeds from the sale of bonds, except those derived from premiums and accrued interest, shall be available for the purpose provided in Section 9613 but shall not be available for transfer to the General Fund to pay principal and interest on bonds. The money in the fund may be expended only as provided in this chapter.

SEC. 2.

 Section 1 of this act shall take effect upon the adoption by the voters of the Elders Living with Dignity, Empathy, Respect, and Support (ELDERS) Bond Act of ____, 2020, as set forth in that section.

SEC. 3.

 (a) Notwithstanding Section 9040, 9043, 9044, 9061, 9094, or 13115 of the Elections Code, or any other law, a ballot measure that sets forth Section 1 of this act shall be submitted to the voters at the ____ November 3, 2020, statewide general election.
(b) The Secretary of State shall ensure the placement of the ballot measure as set forth in Section 1 of this act on the ____ November 3, 2020, statewide general election ballot, in substantial compliance with any statutory time requirements applicable to the submission of statewide measures to the voters at a statewide election.
(c) The Secretary of State shall include, in the ballot pamphlet mailed pursuant to Section 9094 of the Elections Code, the information specified in Section 9084 of the Elections Code regarding the provisions contained in Section 1 of this act.

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 California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order that Section 1 of this act be included on the ____ November 3, 2020, statewide general election ballot for purposes of assisting adults with complex chronic medical, cognitive, or behavioral health conditions, including, but not limited to, Alzheimer’s disease or related dementias, at the earliest possible time, it is necessary that this act take effect immediately.