BILL ANALYSIS Ó
AB 166
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Date of Hearing: March 25, 2015
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Rudy Salas, Chair
AB 166
(Beth Gaines) - As Amended March 11, 2015
SUBJECT: Department of General Services
SUMMARY: Permits the Department of General Services (DGS), with
consent from the Department of Corrections and Rehabilitation
(CDCR), to lease vacant property on the grounds of California
State Prison at Folsom (CSP Folsom) to a nonprofit entity for
the construction and operation of a peace officers memorial and
museum. Specifically, this bill:
1)Authorizes DGS, with the approval of CDCR, to lease vacant
property on the grounds of CSP Folsom to a nonprofit entity
(lessee) formed specifically for the construction and
operation of a peace officers memorial and museum facility
(facility).
2)Permits DGS to lease the specified property for the facility
in "as is" condition for a maximum 50-year term.
3)States that the operation of the facility must include, but
not be limited to, museums, conference rooms, classrooms,
exhibits, workshops for artifact preservation and repair,
secure storage, parking, a gift shop, and a cafeteria, snack
bar, or dining area.
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4)Makes the lessee fully responsible for the maintenance and
operation of the facility in a manner that does not disrupt
the operation of adjacent correctional facilities and exempts
the state from any liability for facility construction,
operation, improvement or maintenance.
5)Requires the lessee to begin construction of the facility
within 48 months, and to have substantially completed
construction within 72 months, of the beginning of the lease.
6)Instructs DGS, with the approval of CDCR, to provide any
necessary utility easements and specifies that utility
connections constructed by the lessee for the facility must be
separate from existing utilities used by the state and
installed at the expense of the lessee, in accordance with the
rules of the utility service providers.
7)Requires the terms of the lease to include specified
circumstances under which the leased property and all
improvements to the leased property revert to the state and
authorizes DGS under these circumstances to charge the lessee
for any costs incurred in the demolition of the facility and
restoration of the property to its pre-leased condition.
8)Clarifies that the construction and operation of the facility
are solely the responsibility of the lessee and shall not be
considered public works.
9)Requires the lessee to pay all administrative costs incurred
by DGS associated with the lease and any required easements.
10)Subjects the lease to periodic review every five years by the
Director of DGS in order to determine whether the purposes of
the lease are being carried out.
EXISTING LAW:
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1)Authorizes DGS to develop and review an inventory of property
surplus to the needs of the state in portions or their
entirety, and allows DGS, subject to legislative approval, to
sell, lease, exchange, or transfer various specified
properties for current market value, or upon terms and
conditions as DGS determines are in the best interests of the
state.
2)Authorizes DGS, with the consent of the state agency
concerned, to lease for a maximum period of five years, any
real or personal property belonging to the state, if the
Director of DGS deems the lease is not expressly prohibited by
law and is in the state's best interest.
3)Requires legislative authority for leases of state land for
periods exceeding five years and provides exemptions to the
five year limit for specified parcels.
FISCAL EFFECT: Unknown
COMMENTS: This bill is sponsored by the Old Guard Foundation,
Inc., a nonprofit group specifically formed for the construction
and operation of the museum site on the grounds of CSP Folsom
that is proposed in this bill. According to the sponsor, its
mission is to educate and inform the public of the roles and
responsibilities of corrections officers and to help advance the
public's understanding of this area of law enforcement.
The current 1,150 square-foot museum is located near the
entrance to CSP Folsom. The author contends that this space is
too small to appropriately highlight the history of corrections,
display several artifacts of the corrections system, and educate
the public about the corrections profession in order to dispel
negative stereotypes. The author states that this bill is
intended to give DGS and CDCR the flexibility to enter into a
long-term lease for an expanded museum site on prison grounds.
The expanded facility would be built and operated with private
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donations and staffed primarily by volunteers, many of whom are
former CDCR correctional officers. The author notes that CDCR
would have no role in its construction and operation once a
lease is approved.
This bill allows DGS and CDCR to enter into a 50-year lease with
the sponsor for the expanded site on currently vacant prison
property. The author carried a similar bill last year that
would have required, rather than allowed, the proposed lease.
This bill also specifies various terms and conditions governing
the lease arrangement, including the construction and completion
schedule of the facility and circumstances under which the
leased property would revert to the state. The sponsor
estimates the project will be completed in three phases at a
cost of approximately $7 million. To date, the sponsor has
raised about $171,000.
While DGS indicates that it does have leases with nonprofit
organizations, the exact number is unknown because their
database does not track that information. DGS reports that,
typically, these leases are for below market value. This bill
allows DGS, CDCR and the sponsor to negotiate the price and
other terms of the lease. Current law permits DGS to enter into
such agreements when the director determines that doing so would
be in the best interests of the state.
DOUBLE-REFERRAL: Should this bill pass this committee, it will
be referred to the Assembly Committee on Arts, Entertainment,
Sports, Tourism, and Internet Media.
PRIOR LEGISLATION:
1)AB 1503 (Gaines) of 2014 was similar to this bill but would
have required, rather than permitted, the proposed lease
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between DGS, CDCR and the sponsor. AB 1503 was vetoed by the
Governor with the following message: "Current law already
allows the state to enter into shorter leases without
specifying the lessee. Rather than forcing the state to allow
a little-known, non-governmental entity to use public property
for up to 50 years, I would prefer that supporters pursue the
existing authority provided in statute."
2)SB 148 (Oller), Chapter 271, Statutes of 2001, directs DGS 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 for a maximum 55-year and a lease payment
of $1 per year to the nonprofit Preston Castle Foundation for
specified uses.
3)AB 434 (Waters), Chapter 146, Statutes of 1989, authorizes
DGS, with the consent of CDCR, to enter into a 50-year lease
with the City of Folsom for a specified parcel within the
grounds of CSP Folsom for a water reservoir. Requires the
lease to be for fair market value and periodically reviewed
every five years by the Director of DGS.
REGISTERED SUPPORT / OPPOSITION:
Support
Old Guard Foundation, Inc. (sponsor)
Opposition
None on file
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Analysis Prepared by:Cassie Royce / A. & A.R. / (916) 319-3600