BILL ANALYSIS Ó SB 1217 Page 1 Date of Hearing: August 8, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 1217 (Dutton) - As Amended: August 6, 2012 Policy Committee: Business and Professions Vote: 9-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill reauthorizes the Director of General Services (DGS), with the consent of the Department of State Hospitals (DSH), to lease a building at Patton State Hospital (PSH) to a nonprofit corporation or local government, for up to 20 years, in order to provide services to elderly persons. FISCAL EFFECT Minor ongoing lease revenue. (Current lease revenue on this building is about $26,000 annually.) COMMENTS 1)Background . Legislation enacted in 1986 authorized DGS to enter into a lease for the same building at PSH for up to 20 years. That lease, with the Highland Senior Center (HSC)-a non-profit providing adult recreation and social activities-expired in 2006. The HSC subsequently signed a five-year lease, which expires in November 2013. 2)Purpose . According to the author's office, the HSC is seeking another 20-year lease in order to secure financing and grants in order to support their programs, which serve over 3,600 seniors from the surrounding communities. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081 SB 1217 Page 2