BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1120| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 1120 Author: Wolk (D) Amended: 8/15/16 Vote: 21 SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 4/12/16 AYES: Hall, Berryhill, Block, Gaines, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Vidak NO VOTE RECORDED: Runner SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 SENATE FLOOR: 37-0, 4/28/16 (Consent) AYES: Allen, Anderson, Bates, Beall, Berryhill, Block, Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall, Hancock, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Stone, Wieckowski, Wolk NO VOTE RECORDED: Hernandez, Runner, Vidak ASSEMBLY FLOOR: 79-0, 8/18/16 - See last page for vote SUBJECT: Director of General Services: state medical facilities: leases SOURCE: Solano County Office of Education DIGEST: This bill authorizes the Director of the Department of General Services (DGS), with the consent of the California Department of Corrections and Rehabilitation (CDCR) and the Department of State Hospitals (DSH), respectively, to renew lease agreements with a nonprofit corporation or public governmental agency for the purpose of conducting special needs SB 1120 Page 2 and alternative education programs on land located within the grounds of the Napa State Hospital (NSH) and the Medical Facility at Vacaville. Assembly Amendments (1) authorize DGS, with the consent of DSH, to renew a lease, not to exceed 50 years, to a public governmental agency for the purpose of conducting its special needs and alternative education programs within the grounds of NSH, (2) specify that DGS shall review the lease of land within the Medical Facility at Vacaville every five years and make adjustments, if necessary, and (3) make minor technical changes. ANALYSIS: Existing law: 1)Authorizes DGS with the consent of the CDCR, to lease a specified property located within the grounds of 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 not to exceed 50 years, and for the property not to exceed 10 acres. 2)Authorizes DGS, with the consent of DSH, to lease specified property located within the NSH to a nonprofit corporation for the purpose of conducting its trainable mentally disabled program consistent with specified requirements. 3)Specifies that a lease executed within the Medical Facility at Vacaville shall include a provision that the lease shall be canceled if permanent facilities are not constructed on the leased land within five years. 4)Provides that a lease pursuant to the property located within the Medical Facility at Vacaville may be assigned or sublet in whole or in part by the lessee nonprofit corporation to any public agency with the approval of the Director of DGS and the CDCR SB 1120 Page 3 This bill: 1)Authorizes the Director of DGS, with the consent of CDCR and DSH, to enter into lease agreement with a nonprofit corporation or a public governmental agency for the purpose of conducting its special needs and alternative education programs on land located within the grounds of the NSH and the medical Facility at Vacaville. 2)Specifies that the leases may be renewed for an additional period not to exceed 50 years. 3)Specifies that DGS shall review the lease of land within the Medical Facility at Vacaville every five years and make adjustments, if necessary. 4)Deletes obsolete provisions relating to the construction of permanent facilities on the leased land, as they have already been built, and make other technical changes. Background Purpose of the bill. The author argues that this bill makes clear that DGS may renew the lease for an additional 50 year term. In addition, the bill also specifies that the lessee may now be a public entity so that the local educational agency can lease directly from the state without a nonprofit. History. In 1967, the Legislature gave DGS the authority to lease a specified property located within the Medical Facility at Vacaville, which at that time was owned by the CDCR, to a nonprofit corporation to conduct an educational and work program for persons with intellectual disabilities. By 1968, the lease was signed between the state and the Solano County Office of Education (Solano COE) for a facility known as the Irene Larsen Education Center. The lease is set to expire on January 31, 2018. While the Solano COE, DGS and CDCR intend to renew the lease, it is believed that current law needs to be amended to execute a new lease. SB 1120 Page 4 Irene Larsen Education Center. The Irene Larsen Education Center is a special education center that primarily services children, from birth to five years of age, with special education needs. The center is comprised of four infant-toddler programs and six preschool programs. The center also houses a full inclusion ChildStart Program, which includes children ages 3-5, and a post-secondary program for young adults with developmental disabilities. The Irene Larsen Education Center currently serves 98 students, with the majority being infant/toddlers and preschool students. Students at the center reside in the Vacaville or Travis Unified School Districts and qualify for Special Education services due to moderate to severe disabilities requiring a low student/teacher ratio. Students receive instruction in twelve classrooms. The Irene Larsen Education Center also employs over 40 staff members as teachers, paraprofessionals, speech/language specialists, occupational and physical therapists, school psychologists, nurses, clerical staff and administrators. Related/Prior Legislation SB 528 (Pan, 2015) would have increased the maximum term for 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 at author's request) AB 166 (Gaines, Chapter 211, Statutes of 2015) authorized DGS, with the consent of CDCR, to enter into a long-term lease for land on the grounds of the California State Prison at Folsom for a non-state funded peace officers memorial and museum. AB 1503 (Gaines, 2014) would have required DGS, with the consent of 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 1120 Page 5 SB 1217 (Dutton, Chapter 707, Statutes of 2012) reauthorized a statute that expressly allows the Director of DGS, with the consent of the Department of State Hospitals, to lease a building located at Patton State Hospital to a nonprofit corporation or local government, for a period not to exceed 20 years, for the purpose of providing services to elderly persons. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Assembly Appropriations Committee, minor one-time administrative costs to DGS, to be reimbursed by the COE's, and minor ongoing lease revenues. SUPPORT: (Verified8/18/16) Solano County Office of Education (source) OPPOSITION: (Verified8/18/16) None received ARGUMENTS IN SUPPORT: According to the Solano County Office of Education, "the Solano COE is able to lease the Irene Larsen property from the state pursuant to a law enacted in 1967. This provision grants DGS the authority to lease property owned by CDCR, but it does not specifically permit the state to renew its lease. By 1968, a 50 year lease commenced between the parties; that lease expires on January 31, 2018. In order to receive funding to modernize and construct new facilities at Irene Larsen, the State Allocation Board (SAB) requires the facility to have a lease of at least forty years. Solano County, like all county offices of education, does not have bonding capacity to raise facility funding without state assistance through SAB. SB 1120 is a practical bill that allows the Solano COE to continue providing services to its student body. SB 1120 Page 6 ASSEMBLY FLOOR: 79-0, 8/18/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, 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, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Roger Hernández Prepared by:Felipe Lopez / G.O. / (916) 651-1530 8/19/16 19:21:45 **** END ****