BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 166| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 166 Page 2 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. AB 166 Page 3 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. AB 166 Page 4 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) AB 166 Page 5 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 **** END **** AB 166 Page 6