BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 166|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  AB 166
          Author:   Beth Gaines (R), et al.
          Amended:  3/11/15 in Assembly
          Vote:     21  

           SENATE GOVERNMENTAL ORG. COMMITTEE:  13-0, 6/9/15
           AYES:  Hall, Berryhill, Block, Gaines, Galgiani, Glazer,  
            Hernandez, Hill, Hueso, Lara, McGuire, Runner, Vidak

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  77-0, 4/30/15 (Consent) - See last page for  
            vote

           SUBJECT:   Department of General Services


          SOURCE:    Old Guard Foundation, Inc.


          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  








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            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  
            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.







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          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.

          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.  








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          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) increases the maximum term for DGS to enter  
          into lease agreements for the acquisition of property from five  
          to 11 years without requiring legislative oversight.  

          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:  (Verified  6/22/15)







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          Old Guard Foundation, Inc. (source)

          OPPOSITION:  (Verified  6/22/15)

          None received

          ARGUMENTS IN SUPPORT:    According to the Old Guard 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 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."

          ASSEMBLY FLOOR:  77-0, 4/30/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau,  
            Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,  
            Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,  
            Eduardo Garcia, Gatto, Gipson, Gonzalez, Gordon, Gray, Grove,  
            Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,  
            Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Campos, Chávez, Gomez

          Prepared by:Arthur Terzakis / G.O. / (916) 651-1530
          6/23/15 11:36:56


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