BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: AB 166 Hearing Date: 6/9/2015
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|Author: |Beth Gaines |
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|Version: |3/11/2015 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Arthur Terzakis |
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SUBJECT: Department of General Services.
DIGEST: This bill authorizes the Department of General
Services (DGS), with consent from the Department of Corrections
and Rehabilitation (CDCR), to enter into a long-term lease for
land on the grounds of the California State Prison (CSP) at
Folsom for a non-state funded peace officers memorial and
museum.
ANALYSIS:
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 best interests of the state.
3)Requires legislative authority for leases of state land for
AB 166 (Beth Gaines) Page 2 of ?
periods exceeding five years and provides exemptions to the
five year limit for specified parcels.
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") to be operated for the benefit of the general
public and members of the lessee.
2)Permits DGS to lease the property for the facility in an "as
is" condition for up to 50 years, with periodic review of the
lease every five years and makes the lessee fully responsible
for the maintenance and operation of the facility in a manner
that does not conflict with the operation of existing CSP
Folsom facilities.
3)Exempts the state from any liability for facility
construction, operation, improvement or maintenance.
4)Requires the lessee to begin construction of the facility
within 48 months, and to have substantially completed
construction with 72 months of the beginning of the lease.
Also, directs 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.
5)Requires the lease terms to include specified circumstances
under which the property would revert to the state and
authorizes DGS, under such 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.
6)Makes it explicit that the construction and operation of the
facility are solely the responsibility of the lessee and shall
not be considered public works.
7)Requires the lessee to pay all administrative costs incurred
by DGS associated with the lease and any required easements.
AB 166 (Beth Gaines) Page 3 of ?
8)Stipulates that the operation of the facility shall include,
but not be limited to, museums, conference rooms, classrooms,
exhibits, workshops for artifact preservation and repair,
storage, parking, a gift shop, and cafeteria, snack bar, or
dining area.
Background
Purpose of AB 166. The author's office states that in 1975, the
Retired Correctional Peace Officers Association founded the
museum at CSP Folsom 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 points out 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 this bill is intended to
facilitate an arrangement with DGS and CDCR to provide for an
expansion of the current museum to a larger site on prison
grounds. According to the author's office, the expanded
facility would be built and operated with private donations and
CDCR would have no role in its construction or operation once a
lease is approved. CDCR reports that it has been in
collaborative discussions with the sponsor regarding an
expansion of the existing museum. The sponsor, the Old Guard
Foundation, estimates the project will be completed in three
phases at a cost of approximately $7 million.
Staff Comments. Last year, AB 1503 (Beth Gaines) mandated,
rather than permitted, the proposed lease between DGS, CDCR and
specifically with 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." AB 166 is permissive and does
not specify a lease with the Old Guard Foundation.
Prior/Related Legislation
SB 528 (Pan, 2015) would increase the maximum term for DGS to
enter into lease agreements for the acquisition of property from
AB 166 (Beth Gaines) Page 4 of ?
five to 11 years without requiring legislative oversight. (Held
in this Committee at author's request)
AB 1503 (Beth Gaines, 2014) would have required DGS, with the
consent of the CDCR, to lease vacant real property on the
grounds of Folsom State Prison to the Old Guard Foundation,
Inc., or a similar and related nonprofit entity, for the
construction and operation of a peace officers memorial and
museum facility. (Vetoed by the Governor)
SB 148 (Oller, Chapter 271, Statutes of 2001) directed 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 term not to exceed 55 years for
consideration of $1 per year to the Preston Castle Foundation
for specified uses.
AB 434 (Waters, Chapter 146, Statutes of 1989) authorized 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. Also, required that the lease be
for fair market value and periodically reviewed every five years
by DGS.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT:
Old Guard Foundation, Inc. (sponsor)
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to the Old Guard Foundation
(Foundation), a nonprofit specifically organized to direct the
construction and eventual operation of the Museum, "the Old
Guard Foundation 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. Every
day, the profession loses historical artifacts and photographs,
and pieces of our history are gone forever. As a partner in the
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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."