BILL ANALYSIS Ó SB 1120 Page 1 Date of Hearing: June 29, 2016 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Cristina Garcia, Chair SB 1120 (Wolk) - As Amended June 13, 2016 SENATE VOTE: 37-0 SUBJECT: Director of General Services: state medical facilities: leases SUMMARY: Allows the Director of the Department of General Services (DGS) to renew existing lease agreements with the Napa and Solano County Offices of Education (COE) for the operation of special needs and alternative education programs on land located within the grounds of Napa State Hospital and adjacent to the Medical Facility at Vacaville, respectively. Specifically, this bill: 1)Authorizes the director of DGS, with the consent of the Department of State Hospitals (DSH) and the California Department of Corrections and Rehabilitation (CDCR), respectively, to enter into lease agreements with a nonprofit corporation or public governmental agency, for the purpose of conducting special needs and alternative education programs on land located within the grounds of Napa State Hospital (NSH) and adjacent to the Medical Facility at Vacaville, respectively. SB 1120 Page 2 2)Specifies that the leases may be renewed for an additional period of no more than 50 years. 3)Deletes obsolete provisions relating to the construction of permanent facilities on the leased land, as they have already been built. EXISTING LAW: 1)Permits DGS, with the consent of DSH, to lease specified property, not to exceed 10 acres, located within the grounds of NSH, to a public governmental agency for the purpose of operating a training program for developmentally delayed persons, a child-care facility, and an educational park, as defined, for a period of no more than 50 years. 2)Permits DGS, with the consent of CDCR, to lease specified property, not to exceed 10 acres, located within the Medical Facility at Vacaville to a nonprofit corporation for the purpose of conducting an educational and work program for persons with intellectual disabilities, for a period of no more than 50 years. FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS: According to the author, this bill is needed to allow the sponsors, the Napa and Solano COEs, to continue providing educational services and learning support to special needs students at the Napa COE Education Center located on the grounds of NSH and the Irene Larsen Educational Center located on the grounds of the Medical Facility at Vacaville. While current law gives DGS the authority to enter into these lease arrangements with the Napa and Solano COEs for specified educational purposes, it does not permit the leases to be SB 1120 Page 3 renewed. The Solano COE is particularly concerned because its lease with DGS is set to expire in January 2018. The author reports that DGS, CDCR, and the Solano COE all intend to renew the lease and this bill provides the necessary statutory authorization to execute a new lease by specifying an additional 50-year lease renewal period. This bill also clarifies that the COEs can lease directly from the state (rather than through a nonprofit), and updates language used to describe these educational programs. Specifically, it replaces the outdated phrase "mentally-retarded program" with the term "special needs and alternative education programs" instead. The sponsors add that the 50-year lease renewal provision in this bill will also allow the COEs to access state funds to modernize these facilities. They note that COEs do not have bonding capacity to raise local funds and therefore must qualify for state funding to meet their facility needs, including a requirement for the facility to have a lease of at least 40 years. REGISTERED SUPPORT / OPPOSITION: Support Napa County Office of Education (sponsor) Solano County Office of Education (sponsor) SB 1120 Page 4 Opposition None on file. Analysis Prepared by:Cassie Royce / A. & A.R. / (916) 319-3600