BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1217
                                                                  Page  1

          Date of Hearing:   June 12, 2012

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                 SB 1217 (Dutton) - As Introduced:  February 23, 2012

           SENATE VOTE  :   35-0
           
          SUBJECT  :   State hospitals: Patton State Hospital.

           SUMMARY  :   Reauthorizes the Department of General Services 
          (DGS), with the consent of the State Department of Mental Health 
          (DMH), to lease a building located at Patton State Hospital 
          (PSH) to a non-profit corporation or local government, for up to 
          20 years, for the purpose of providing services to elderly 
          persons.   

           EXISTING LAW  authorizes the DGS, with the consent of the DMH, to 
          lease a building located at PSH to a non-profit corporation or 
          local government, for up to 20 years, for the purpose of 
          providing services to elderly persons.   

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, "The 
          Highland Senior Center (HSC) entered into a lease agreement with 
          the DGS on December 1, 2008.  The lease is set to expire on 
          November 30, 2013.  The HSC is in need of a long-term lease in 
          order to secure financing and grants.  Without the commitment of 
          a long-term lease, financial institutions will not loan the 
          funds needed in order to make various repairs on the property."

           Background  .  The HSC is located on the grounds of the PSH and is 
          a private, non-profit senior adult recreational and social 
          facility, which was incorporated April 27, 1979.  The purpose of 
          the HSC is to improve the quality of life for seniors through 
          educational classes, social interaction, and special outreach 
          programs.  The HSC currently serves approximately 2,000 seniors, 
          and has served a total of approximately 80,000 seniors.  In 
          1986, the HSC entered into a 20-year lease agreement that 
          expired in 2006.  Subsequently, the HSC entered into a five-year 
          lease agreement that expires on November 30, 2013.








                                                                  SB 1217
                                                                  Page  2


          Current law already allows DGS, with the DMH's consent, to enter 
          into a 20-year lease with the HSC.  

           Support  .  According to the HSC, "The HSC is in need of a 
          long-term lease in order to secure financing and grants.  
          Without the commitment of a long-term lease, financial 
          institutions will not loan the funds needed in order to make 
          various repairs and expansions to the property.  We work 
          diligently to serve our 2,000 members through educational 
          classes, a nutrition program, and social interaction.  Some of 
          our special outreach programs include Phone Pal Transportation 
          Assistance, and Friendly Visitor Program.  By obtaining a 
          long-term lease, the HSC will have the opportunity to secure 
          funding for much-need 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? �This would allow] over 3,600 seniors of 
          the Highland, San Bernardino and surrounding communities to 
          participate in activities with their peers."

           Previous Legislation  .  SB 1648 (Nielsen), Chapter 224, Statutes 
          of 1986, authorizes the DGS, with the consent of the DMH, to let 
          a building located at PSH to a non-profit corporation or local 
          government, for up to 20 years, for the purpose of providing 
          services to elderly persons.   

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Highland Senior Center
           
            Opposition 
           
          None on file. 

           Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916) 
          319-3301