BILL NUMBER: SB 148	CHAPTERED  09/10/01

	CHAPTER  271
	FILED WITH SECRETARY OF STATE  SEPTEMBER 10, 2001
	APPROVED BY GOVERNOR  SEPTEMBER 8, 2001
	PASSED THE SENATE  AUGUST 23, 2001
	PASSED THE ASSEMBLY  JULY 19, 2001
	AMENDED IN ASSEMBLY  JUNE 27, 2001

INTRODUCED BY   Senator Oller

                        JANUARY 30, 2001

   An act to add Section 14672.98 to the Government Code, relating to
state property.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 148, Oller.  Preston Castle:  lease and transfer of ownership.
   Existing law authorizes the Director of General Services, with the
consent of the state agency concerned, to let for a period not to
exceed 5 years, any real or personal property that belongs to the
state, if the director deems the letting to be in the best interest
of the state.
   This bill would direct the director to lease upon terms and
conditions deemed in the best interest of the state, any or all of
the Preston Castle portion of the Ione Youth Facility as agreed to
and designated by the Department of the Youth Authority.  The bill
would require the Preston Castle portion of the Ione Youth Facility
to be let in its "as is" condition and to be let for a term not to
exceed 55 years for consideration of $1 per year to the Preston
Castle Foundation for specified uses.  The bill would permit the
director under specified conditions to transfer ownership and control
of the Preston Castle at any time during the lease to the foundation
at no cost.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14672.98 is added to the Government Code, to
read:
   14672.98.  (a) The Department of General Services shall lease upon
terms and conditions deemed in the best interest of the state, any
or all of the Preston Castle portion of the Ione Youth Facility as
agreed to and designated by the Department of the Youth Authority.
   (b) The property shall be let for a term not to exceed 55 years
and for the consideration of one dollar ($1) per year.  The property
shall be let to the Preston Castle Foundation, a nonprofit public
benefit corporation, for uses that include, but are not limited to,
museums, art gallery, courtroom, city hall, hostel, adult college
classrooms and dormitory, culinary school, senior center, and related
retail that shall be consistent with the lease agreement.
   (c) The Preston Castle portion of the Ione Youth Facility shall be
leased in its "as is" condition and the state shall have no
liability for repairs, rehabilitation, or other improvements.  The
lease shall provide that the lessee shall undertake and accomplish
significant repairs, rehabilitation, or other improvements not later
than 15 years from the effective date of the lease.
   (d) At any time during the lease, at the request of the Preston
Castle Foundation, the Director of General Services may determine
that the Preston Castle Foundation has successfully rehabilitated the
property for the uses specified in subdivision (b) and that those
uses are hereby determined to benefit the general public.  Upon
making that determination, the Director of General Services shall
transfer ownership and control of Preston Castle, with the consent of
the Director of the Department of the Youth Authority, to the
Preston Castle Foundation at no cost, other than the costs incurred
for the real estate transfer.  These terms and conditions of the
transfer will be deemed to be in the best interest of the state.
   (e) However, should the Preston Castle no longer be used for the
purposes specified in subdivision (b), a reversion of title to the
state may take effect.  This reversion clause shall remain in effect
for as long as the state operates a youth correctional facility on
the adjacent land.
   (f) The lease and transfer described in this section are exempt
from Division 13 (commencing with Section 21000) of the Public
Resources Code.  Work performed by the Preston Castle Foundation on
the property that is the subject of this section shall not be
considered public works.