BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 695|
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VETO
Bill No: SB 695
Author: Wright (D)
Amended: 6/27/13
Vote: 27 - Urgency
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 11-0, 4/9/13
AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,
De León, Galgiani, Hernandez, Lieu, Padilla
SENATE NATURAL RESOURCES AND WATER COMMITTEE : 9-0, 4/23/13
AYES: Pavley, Cannella, Evans, Fuller, Hueso, Jackson, Lara,
Monning, Wolk
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 34-0, 5/9/13
AYES: Beall, Block, Calderon, Cannella, Corbett, Correa, De
León, DeSaulnier, Emmerson, Evans, Fuller, Gaines, Galgiani,
Hancock, Hernandez, Hill, Hueso, Huff, Jackson, Knight, Lara,
Leno, Lieu, Liu, Monning, Nielsen, Padilla, Roth, Steinberg,
Walters, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Anderson, Berryhill, Pavley, Price, Vacancy,
Vacancy
ASSEMBLY FLOOR : 59-2, 9/4/13 - See last page for vote
SENATE FLOOR : 36-1, 9/6/13
AYES: Anderson, Beall, Berryhill, Block, Calderon, Cannella,
Corbett, De León, DeSaulnier, Emmerson, Evans, Fuller, Gaines,
Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson,
Lara, Lieu, Liu, Monning, Nielsen, Padilla, Pavley, Roth,
Steinberg, Torres, Vidak, Walters, Wolk, Wright, Wyland, Yee
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SB 695
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NOES: Correa
NO VOTE RECORDED: Knight, Leno, Vacancy
SUBJECT : California Science Center: parking facilities
SOURCE : Author
DIGEST : This bill prohibits the California Science Center
(CSC) from delegating to any other party the power to manage and
operate the CSC's parking facilities, and specifies that these
provisions are declaratory of existing law; requires the CSC to
establish the parking rates at parking facilities in Exposition
Park; and prohibits the CSC from entering into a sale of, or a
lease for a term of more than 10 years for the use of its
parking facilities, the Los Angeles Coliseum, or the Los Angeles
Sports Arena, unless the Legislature authorizes the proposed
sale or lease by statute, except as specified.
ANALYSIS :
Existing law:
1.Requires the 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.
2.Specifies that all revenues received by the CSC from its
parking facilities shall be deposited in the Exposition Park
Improvement Fund, and that the funds may only be used, upon
appropriation by the Legislature, for improvements to
Exposition Park.
This bill:
1.Prohibits CSC from delegating to any other party the power to
manage and operate the CSC's parking facilities, and specifies
that these provisions are declaratory of existing law.
2.Requires the CSC to establish minimum and maximum parking
rates that may be charged at parking facilities in Exposition
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Park.
3.Prohibits CSC from entering into a sale of, or a lease for a
term of more than 10 years for the use of its parking
facilities, the Los Angeles Coliseum, or the Los Angeles
Sports Arena, unless the Legislature authorizes the proposed
sale or lease by statute, except if the lease contains terms
requiring the lessee to perform substantial capital
improvements.
Background
The CSC operates Exposition Park, a 160-acre tract south of
Downtown Los Angeles that is owned by the state. The CSC has
leased portions of the park to the Los Angeles Memorial Coliseum
Commission (Commission). The member entities of the Commission
are the City of Los Angeles, the County of Los Angeles, and the
CSC. The JPA authorizes the Commission to operate and manage
facilities within Exposition Park, including the LA Memorial
Coliseum (Coliseum).
In 2008, the Commission and USC entered into a lease that
authorized USC to use the Coliseum during football season. Under
the lease, the Commission is the landlord, and in that capacity,
the Commission agreed to carry out necessary repairs and
specific capital improvements according to a specific schedule.
In response to concerns that the Commission could not complete
necessary repairs and capital improvements to the Coliseum, the
CSC and USC entered into a "Non-Disturbance Agreement" in 2012,
in which the CSC agreed that, if the Commission's interest is
"terminated by [the California Science] Center or by operation
of law prior to the termination of the lease," the CSC would
assume the rights and responsibilities of the Commission under
its lease with USC, including the responsibility to perform the
capital improvements.
In December 2012, the CSC and USC negotiated a tentative,
revised Non-Disturbance Agreement. A significant difference is
that USC would assume the obligation to perform capital
improvements to the Coliseum, not the Science Center, as is the
case in the existing Non-Disturbance Agreement.
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Notably, the tentative agreement also contemplates an agreement
between USC and the CSC, under which USC would manage specified
parking lots owned by the state (CSC). Furthermore, USC would
have rights to a portion of the revenue earned from the parking
lots, which are located on state property.
Current and contemplated leases . On May 14, 2008, the
Commission and USC entered into a 25-year lease of the Coliseum,
under which USC has five successive five-year options to extend
the lease, until December 31, 2054.
On May 14, 2012, the Commission voted 8-1 to approve a
controversial deal to surrender day-to-day control of the
Coliseum to USC. The proposed new lease would give USC the
right to control the Coliseum until 2054, when the Commission is
set to dissolve and the assets are to be transferred to the
state.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 9/5/13)
---
OPPOSITION : (Verified 9/5/13)
University of Southern California
ARGUMENTS IN SUPPORT : According to the author's office, the
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 prescribed by
statute. If that statute requires the exercise of discretion,
as is the case regarding CSC management of parking lots and
revenues, the power is in the nature of a public trust and may
not be delegated by the agency without statutory authorization.
The author's office also notes that existing law expressly
requires the CSC to deposit all revenues received from parking
facilities into the Exposition Park Improvement Fund, and that
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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 that CSC is
required by law to exercise discretion on how to accomplish the
statutory mandates. Thus, this public trust obligation cannot
be delegated to USC.
ARGUMENTS IN OPPOSITION : USC favors the provisions in the
2012 proposed lease agreement that would allow USC to operate
and manage the parking lots at Exposition Park. USC contends
that this authorization would provide guaranteed income to
Exposition Park in amounts that match the highest amount of
revenue ever generated from the parking lots.
USC acknowledges the concerns that have been raised by the CSC
and others regarding USC's push for authorization to manage and
control the parking lots, but it suggests that subsequent
negotiations between the parties should be allowed to continue
without the threat of legislation.
GOVERNOR'S VETO MESSAGE:
"I am returning Senate Bill 695 without my signature.
Prohibiting potential lessees as proposed by this bill
unnecessarily limits the California Science Center's revenue
options and further restricts the Center from pursuing
partnerships that may prove to be advantageous to itself and
Expo Park as a whole."
ASSEMBLY FLOOR : 59-2, 9/4/13
AYES: Alejo, Ammiano, Atkins, Bloom, Bocanegra, Bonilla, Bonta,
Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez,
Chesbro, Cooley, Daly, Dickinson, Eggman, Fong, Fox, Frazier,
Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gray, Grove,
Hall, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer,
Levine, Lowenthal, Maienschein, Medina, Mitchell, Morrell,
Mullin, Muratsuchi, Nazarian, Pan, Perea, V. Manuel Pérez,
Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting,
Wagner, Weber, Wieckowski, Williams, John A. Pérez
NOES: Allen, Hagman
NO VOTE RECORDED: Achadjian, Bigelow, Conway, Dahle, Donnelly,
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Gordon, Gorell, Linder, Logue, Mansoor, Melendez, Nestande,
Olsen, Patterson, Waldron, Wilk, Yamada, Vacancy, Vacancy
MW:nk 1/6/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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