BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1120


                                                                    Page  1





          SENATE THIRD READING


          SB  
          1120 (Wolk)


          As Amended  June 13, 2016


          Majority vote


          SENATE VOTE:  37-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Accountability  |8-0  |Cristina Garcia,      |                    |
          |                |     |Lackey, Burke,        |                    |
          |                |     |Frazier, Beth Gaines, |                    |
          |                |     |Irwin, Medina,        |                    |
          |                |     |Rodriguez             |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood,  |                    |
          |                |     |Chau                  |                    |








                                                                    SB 1120


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          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.
          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  








                                                                    SB 1120


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            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 Assembly Appropriations  
          Committee, minor one-time administrative costs to DGS, to be  
          reimbursed by the COEs, and minor ongoing lease revenues.


          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  
          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.   








                                                                    SB 1120


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          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. 




          Analysis Prepared by:                                             
                          Scott Herbstman / A. & A.R. / (916) 319-3600   
          FN: 0003975