BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 354|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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CONSENT
Bill No: AB 354
Author: Committee on Accountability and Administrative Review
Introduced:2/17/15
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: 78-0, 4/23/15 (Consent) - See last page for
vote
SUBJECT: Director of the Department of General Services:
state leases: notification
SOURCE: Author
DIGEST: This bill requires the Director of the Department of
General Services (DGS) to notify the chairperson of the Assembly
Committee on Accountability and Administrative Review and the
Senate Committee on Governmental Organization of a pending
building lease when that lease is for a period of five years or
longer and an annual rental in excess of $10,000.
ANALYSIS: Existing law prohibits DGS from entering into a
building lease if the state's obligation as lessee is for the
occupancy of a state agency with a lease period of five years or
longer and an annual rental in excess of $10,000 unless, at
least 30 days prior to entering into the lease, the director
notifies, in writing, the chairperson of the committee in each
house of the Legislature that considers appropriations and the
Chairperson of the Joint Legislative Budget Committee, as
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Page 2
specified.
This bill requires DGS to notify the chairperson of the Assembly
Committee on Accountability and Administrative Review and the
Senate Committee on Governmental Organization of a pending
building lease when that lease is for a period of five years or
longer and an annual rental in excess of $10,000.
Background
Purpose of the bill. This bill seeks to increase legislative
oversight by requiring DGS to also include the Assembly
Committee on Accountability and Administrative Review and the
Senate Committee on Governmental Organization in notifications
of building leases for state agencies.
Leasing Process. Though the State of California owns various
buildings throughout the State, oftentimes, state agencies and
departments are in need of additional office space or land.
When that occurs, the state agency or department contacts DGS
requesting new and/or additional office space. After the
request has been submitted, DGS will first determine if the
state-owned space is available that satisfies the need of the
department.
If none exist, DGS determines the necessary need for that
particular department and begins a search for suitable office
space in the marketplace. This search usually results in three
viable choices at which point DGS will begin negotiations with
those three entities to try and get the best deal for the state.
More often than not, the state will enter into a four-year
lease with the first four years of that being a hard lease,
meaning neither side can terminate the contract. Most of the
time those leases are simply renewed.
For those instances where DGS is looking to enter into a lease
that is longer than five years, current law requires DGS to
notify, in writing, the chairs of the Senate and Assembly
Appropriations Committees as well as the Chair of the Joint
Legislative Budget Committee at least 30 days prior to executing
the lease. This notification oftentimes is simply a one-page
summary explaining the need for the lease.
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Related Legislation
SB 528 (Pan, 2015) increases the maximum term for the DGS to
enter into lease agreements for the acquisition of property from
five to 11 years without requiring legislative oversight. (Held
in Senate Governmental Organization Committee)
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified6/22/15)
None received
OPPOSITION: (Verified6/22/15)
None received
ASSEMBLY FLOOR: 78-0, 4/23/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau,
Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,
Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, 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,
Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,
Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Campos, Salas
Prepared by:Felipe Lopez / G.O. / (916) 651-1530
6/22/15 14:19:26
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