BILL ANALYSIS Ó
SB 695
Page 1
SENATE THIRD READING
SB 695 (Wright)
As Amended June 27, 2013
2/3 vote. Urgency
SENATE VOTE :34-0
AGRICULTURE 4-0 ARTS, ENTERTAINMENT, SPORTS
5-0
------------------------------------------------------------------
|Ayes:|Eggman, Atkins, Pan, |Ayes:|Ian Calderon, Bloom, |
| |Quirk | |Brown, Gomez, Levine |
| | | | |
|-----+--------------------------+-----+---------------------------|
| | | | |
------------------------------------------------------------------
APPROPRIATIONS 12-0
-----------------------------------------------------------------
|Ayes:|Gatto, Bocanegra, | | |
| |Bradford, | | |
| |Ian Calderon, Campos, | | |
| |Eggman, Gomez, Hall, | | |
| |Holden, Pan, Quirk, Weber | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
-----------------------------------------------------------------
SUMMARY : This bill prohibits the California Science Center
(CSC) from delegating the power to manage and operate CSC's
parking facilities to any other party, and prohibits CSC or the
director of the Department of General Services (DGS) from
approving a sale or lease of more than 10 years of CSC's parking
facilities without legislative approval, as specified. This
bill has an urgency clause allowing it to take effect
immediately upon enactment. Specifically, this bill :
1)Prohibits CSC from delegating operation of CSC's parking
facilities to any other party.
2)Requires CSC to set the minimum and maximum parking fees that
may be charged at Exposition Park.
3)Prohibits CSC, or the director of DGS, from approving a sale
SB 695
Page 2
or lease of more than 10 years of CSC's parking facilities
without legislative approval, as specified.
a) Removes from legislative approval leases of more than 10
years, if the terms of the lease require the lessee to
preform substantial capital improvements, as specified.
4)Makes technical changes.
EXISTING LAW :
1)Creates the Sixth District Agricultural Association, which is
known as CSC.
2)Requires CSC to manage or operate its parking facilities in a
manner that preserves and protects the interests of itself and
the California African-American Museum and recognizes the
cultural and educational character of Exposition Park.
3)Specifies that all revenues received by CSC from its parking
facilities shall be deposited in the Exposition Park
Improvement Fund (Fund), and that the funds may only be used,
upon appropriation by the Legislature, for improvements to
Exposition Park.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, if this lease amendment is not completed and the
commission is unable to make the required improvements, there
could be cost pressure for the state to provide the funding
necessary to update the Coliseum.
COMMENTS : CSC operates Exposition Park, a 160-acre tract south
of Downtown Los Angeles that is owned by the state. CSC has
leased portions of the park to the Los Angeles Memorial Coliseum
Commission (Commission). The members of the Commission are the
City of Los Angeles, the County of Los Angeles, and CSC. The
Commission is authorized to operate and manage facilities within
Exposition Park, including the Los Angeles Memorial Coliseum
(Coliseum).
In December 2012, CSC and USC negotiated a tentative, revised
Non-Disturbance Agreement. A significant difference is that
USC, not CSC, would assume the obligation to perform capital
improvements to the Coliseum. The tentative agreement also
SB 695
Page 3
contemplates an agreement under which USC would manage specified
CSC parking lots. Under this tentative agreement, USC would
have rights to a portion of the revenue earned from the parking
lots, which are located on state property.
According to the author's office, CSC has no statutory authority
to delegate control of state parking lots to USC. The author's
office states that Legislative Counsel has opined that the
prohibitions against delegation of power to USC to operate CSC
parking lots are declaratory of existing law, because state
agencies are required to exercise power in accordance with the
manner set by statute. The author's office also notes that
existing law expressly requires CSC to deposit all revenues
received from parking facilities into the Fund, and that these
monies may only be used, upon appropriation by the Legislature,
for improvements to Exposition Park. The author's office states
that this clearly demonstrates CSC is required by law to
exercise discretion on how to accomplish the statutory mandates.
As part of the proposed lease agreement from May 2013, USC will
invest a minimum of $70 million in the Coliseum to complete
repairs and improvements. In return, USC will receive the right
to purchase special event parking in Exposition Park on days
when events are being held in the Coliseum or Sports Arena.
On June 25, 2013, the governing board of CSC voted 7 to 0 to
adopt the basic terms for the lease agreement that extends to
USC most of the benefits of owning the Coliseum. The lease goes
into effect after DGS and the California Natural Resources
Agency approves a final lease and the CSC board ratifies it.
The package could require the state to reimburse two public
museums, CSC and the Californian African American Museum, for
money they might lose because the lease will permit limited use
of the parking lots at a lower price for nine to 10 days a year.
Governor Brown's administration sent a letter to the museums
promising to restore lost parking funds during the coming two
years.
Analysis Prepared by : Victor Francovich / AGRI. / (916)
319-2084
SB 695
Page 4
FN: 0002118