BILL NUMBER: SB 565	CHAPTERED  10/10/99

	CHAPTER   951
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 8, 1999
	AMENDED IN ASSEMBLY   AUGUST 24, 1999
	AMENDED IN SENATE   JUNE 1, 1999
	AMENDED IN SENATE   APRIL 26, 1999

INTRODUCED BY   Senator Costa
   (Principal coauthor:  Assembly Member Reyes)

                        FEBRUARY 19, 1999

   An act to add and repeal Section 14669.7 of the Government Code,
relating to state property.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 565, Costa.  State facilities:  Department of Transportation:
study.
   Existing law generally authorizes the Director of General Services
to hire, lease, lease-purchase, or lease with the option to purchase
any real or personal property for the use of any state agency, if
the director deems the hiring or leasing is in the best interest of
the state.
   This bill would require the director to undertake a study
regarding the purchase, exchange, or acquisition of real property and
the construction of facilities in the County of Fresno for use by
the Department of Transportation and other state agencies.  The bill
would require the director to report to the Legislature on or before
July 1, 2000.
   These provisions would remain in effect only until January 1,
2001, and as of that date would be repealed, unless a later enacted
statute, that is enacted before January 1, 2001, deletes or extends
that date.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14669.7 is added to the Government Code, to
read:
   14669.7.  (a) The director shall study the purchase, exchange, or
acquisition of real property and the construction of facilities in
the County of Fresno, for use by the Department of Transportation and
other state agencies.  The study shall include an evaluation of
options to finance the facilities.  The department shall consider the
placement of the facilities on a site that permits future expansion
of the facilities described by this section, if evaluations of future
workload indicates that future expansion of the facilities may be
warranted.
   (b) The study shall assume that the net present value of the cost
to acquire and operate the facilities described in this section may
not exceed the net present value of the cost to lease and operate an
equivalent amount of comparable office space over the same time
period.  The department shall perform this analysis and shall obtain
interest rates, discount rates, and consumer price index figures from
the Treasurer.  For purposes of this analysis, the department shall
compare the cost of acquiring and operating an equivalent amount of
comparable office space that will no longer need to be leased because
the agencies will no longer occupy currently leased facilities when
they occupy the proposed facilities.
   (c) Notwithstanding Section 7550.5 of the Government Code, the
director shall submit the study described in this section to the
Legislature on or before July 1, 2000.
  (d) This section shall remain in effect only until January 1, 2001,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2001, deletes or extends that date.