BILL ANALYSIS                                                                                                                                                                                                    �






                                                       Bill No:  SB 
          1217
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2011-2012 Regular Session
                                 Staff Analysis


          SB 1217  Author:  Dutton
          As Introduced:  February 23, 2012
          Hearing Date:  April 10, 2012
          Consultant:  Paul Donahue


                                     SUBJECT  

             Patton State Hospital; Lease to Highland Senior Center

                                   DESCRIPTION
           
          This bill reauthorizes a statute that expressly allows the 
          director of the Department of General Services (DGS), with 
          the consent of the State Department of Mental Health, 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.

                                   EXISTING LAW

           1)Among other things, authorizes DGS to lease any state 
            real or personal property for a period of time not to 
            exceed 5 years, the leasing of which is not expressly 
            prohibited by law, if the director of DGS deems the 
            letting to be in the best interests of the state. (Govt. 
            Code � 14670)

          2)A statute enacted in 1986<1> expressly authorizes DGS to 
            lease a building located at Patton State Hospital to a 
            private nonprofit corporation or local government, for a 
            period not to exceed 20 years, for the purpose of 
            providing services to elderly persons.

                                    BACKGROUND
                           -------------------------
          <1> Stats. 1986, ch. 224, � 4, effective June 30, 1986




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          1)In 1986, the Senior Center at Patton State Hospital 
            entered into a 20-year lease agreement, pursuant to a 
            statute that expressly authorized this long term lease.  
            When the lease expired in 2006, the Highland Senior 
            Center signed a five-year lease with DGS.  This lease 
            expires on November 30, 2013.  

          2)According to the author, the Highland Senior Center needs 
            a long term lease in order to secure financing and 
            grants.  The author states that, without the commitment 
            of a long term lease, financial institutions will not 
            loan the funds needed to make various repairs to the 
            subject property. 

            This bill would re-enact the 1986 law authorizing a 
            20-year lease term for the Senior Center. 

          3)The Senior Center at Patton State Hospital is located on 
            the grounds of Patton State Hospital and is a private, 
            non-profit senior adult recreational and social facility 
            which was incorporated on April 27, 1979.  The purpose of 
            the center is to improve the quality of life for seniors 
            through educational classes, social interaction and 
            special outreach programs.  Current membership is 
            approximately 2000. The center has served approximately 
            80,000 seniors in the past.

          4)Writing in support, the executive director of the 
            Highland Senior Center states that, "by obtaining a long 
            term lease, the Center will have the opportunity to 
            secure funding for much needed programs and activities, 
            such as our daily hot lunch nutritional on-site program, 
            over 20 physical fitness classes, 30 weekly social and 
            recreational activities, and over 20 educational classes. 
             The Center hosts over 3600 seniors of the Highland, San 
            Bernardino and surrounding communities."

           SUPPORT:   

          Highland Senior Center

           OPPOSE:   

          None on file






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           FISCAL COMMITTEE:   Senate Appropriations Committee



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