BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1120|
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                                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  








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          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









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          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.  









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          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)









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                                                                    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.








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           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


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