BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 166


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          Date of Hearing:  April 7, 2015


           ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, TOURISM, AND  
                                   INTERNET MEDIA


                             Ian Charles Calderon, Chair


          AB 166  
          (Beth Gaines) - As Amended March 11, 2015


          SUBJECT:  Department of General Services: Peace Officers  
          Memorial and Museum.


          SUMMARY:  Would authorize the Department of General Services  
          (DGS), with the consent of the Department of Corrections and  
          Rehabilitation (CDCR), to lease vacant real property on the  
          grounds of California State Prison (CSP) at Folsom to a  
          nonprofit entity formed especially for the implementation of the  
          construction and operation of a peace officers memorial and  
          museum facility at the prison. 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).









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          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.

          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.








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          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:  


          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:  


          1)   Stated need for legislation and support.


            The author's office states that in 1975, the Retired  
            Correctional Peace Officers Association founded the museum at  








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            Folsom State Prison and dedicated it to prison staff members  
            who had died from cancer. The museum is housed at Old House  
            #8, just inside the entrance to Folsom Prison, and is staffed  
            by volunteers. The author's office states that the current  
            museum space is too small to adequately highlight the history  
            of CDCR, honor the members of the profession, and help dispel  
            negative stereotypes. The author's office notes that several  
            artifacts have had to be placed in other storage areas of  
            Folsom Prison due to the lack of space.  


            This bill allows a 50-year lease for a proposed museum site on  
            land that is currently vacant and does not conflict with any  
            CDCR operational or facility plans at either Old Folsom prison  
            or New Folsom Prison. The facility will be built and operated  
            using private donations.  Once a lease is approved, CDCR will  
            have no role or responsibility in its construction or  
            operation. The museum will be principally operated by  
            volunteers, many of whom are former CDCR correctional  
            officers, and overseen by DGS through periodic review.


            According to the bill's sponsors, the Old Guard Foundation  
            (OGF), a nonprofit specifically organized to direct the  
            construction and eventual operation of the Museum, "The OLF  
            plans to sponsor, build and operate a world-class collection  
            of artifacts, exhibits, videos, photographs, and first-hand  
            descriptions of historical incidents so the public can explore  
            the deep and colorful history of Corrections in Folsom and  
            other locations across America?As a partner in the community,  
            the national Big House Prison Museum will help cultivate a  
            cooperative relationship between the Old Guard Foundation and  
            local businesses by promoting tourism and commerce, giving  
            local residents and tourists an interesting and memorable  
            experience."


          2)   Background: AB 166 is reintroduction of prior vetoed  
          legislation.








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            AB 1503 (Gaines) of 2014 was similar to this bill but would  
            have required, rather than permitted, the proposed lease  
            between DGS, CDCR and the sponsor. AB 1503 passed through the  
            Legislature without a single no vote, but 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."  The author responded  
            to this message by changing the terms to permit the DGS and  
            CDCR to contract with the sponsor, rather than mandate the  
            parties to the agreement. The author states that she is in  
            contact with the Governor's office, and is working with his  
            staff in order to avoid a similar fate for AB 166.


          3)   AB 166 authorizes lease consistent with prior DGS  
          agreements.


            According to the Senate Floor analysis of AB 1503 of last  
            session (precursor to AB 166), "The DGS reports that it has  
            several leases with nonprofit organizations, most of which are  
            leased at below market rental value. The lease authorization  
            contemplated in this bill is to expand the existing  
            museum/memorial at Folsom State Prison.


            "This bill allows DGS, CDCR, and the lessee to negotiate the  
            price and other terms of the lease in order to provide for the  
            continued use, enjoyment and new expansion of the museum on  
            prison property. Under existing laws, DGS is authorized to  
            enter into such agreements when the Director determines that  
            doing so is in the best interests of the state. 










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            "For example, DGS may lease part of Napa State Hospital for an  
            independent living facility 'under terms and conditions  
            determined by the director to be in the best interests of the  
            state.'  Another statute authorizes DGS, "in the best  
            interests of the state," to re-negotiate a lease for the  
            purpose of establishing an educational park, for a period not  
            to exceed 50 years. Similarly, DGS may lease the Nurses  
            Cottage at the Agnew's Developmental Center to nonprofits  
            operating homeless shelters for $1 per month in lease  
            payments.  


            "Most relevant to this bill, existing statutes direct DGS,  
            upon terms and conditions that DGS deems to be in the best  
            interest of the state, to lease any or all of the Preston  
            Castle portion of the Ione Youth Facility for a term not to  
            exceed 55 years and for the consideration of $1 per year."


            Current law restricts the length for which the state may lease  
            its own real property to private or other entities to no more  
            than five years. Any lease for longer than five years, such as  
            that proposed by AB 166, requires specific statutory  
            authority. As mentioned, various individual statutes have been  
            enacted over the years to allow the state to lease specific  
            parcels of state property in excess of five years. These  
            leases generally require the state to review the terms and  
            conditions every five years to ensure the state's interests  
            are protected, as does AB 166.  


           





           4)  Existing prison museums in California.









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            Information provided by the Pennsylvania State Department of  
            Corrections Eastern State Penitentiary State Museum Internet  
            site notes, "People are fascinated by prisons. There are more  
            than 100 prison museums worldwide; and in the tourist-rich  
            cities of San Francisco, London and Dublin, historic prisons  
            are the single largest attractions." In their extensive list  
            of existing prison museums are the following California  
            facilities and descriptions:


                 Alcatraz, San Francisco, CA, USA. Born of necessity,  
               perhaps even political expediency, Alcatraz represents the  
               federal government's response to post-Prohibition,  
               post-Depression America. Arguably America's most famous  
               prison, Alcatraz operated as a Federal Prison from 1934  
               until 1963.



                 Folsom Prison Museum, Sacramento, CA, USA. The Folsom  
               Prison Museum offers a look at torturous prison conditions  
               in decades after the California Gold Rush populated the  
               Sierra Nevada foothills. The museum contains artifacts and  
               records dating back to the 1800s.



                 Manzanar National Historic Site, Independence, CA, USA.  
               Manzanar War Relocation Center was one of ten camps at  
               which Japanese American citizens and resident Japanese  
               aliens were interned during World War II. Located at the  
               foot of the imposing Sierra Nevada in eastern California's  
               Owens Valley, Manzanar has been identified as the best  
               preserved of these camps.



                 Old Monterey Jail, Monterey, CA, USA. The Old Jail,  








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               located next to Colton Hall, was constructed in 1854 and  
               served as the City Jail until 1956. The jail was an  
               impenetrable fortress for its inmates; no one ever escaped  
               from the thick granite walls during its history.



                 San Quentin Prison Museum, San Quentin, CA, USA.  
               California established a State Prison system in 1851 in  
               response to increased criminal activity brought on by the  
               sudden influx of men seeking their fortune in the gold  
               fields. As it quickly became overcrowded and escapes  
               common, building began for a permanent facility on Pt. San  
               Quentin in 1852.
          5)   Prior related legislation.


            a)     AB 1503 (Gaines) of 2014 (discussed above) was similar  
            to this bill but would have required, rather than permitted,  
            the proposed lease between DGS, CDCR and the sponsor. This  
            bill was vetoed by Governor Brown.

            b)     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.

            c)                                                             
            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.









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          REGISTERED SUPPORT / OPPOSITION:




          Support


          Old Guard Foundation (sponsor)




          Opposition


          There is no opposition on file.




          Analysis Prepared by:Dana Mitchell / A.,E.,S.,T., & I.M. / (916)  
          319-3450