BILL ANALYSIS �
AB 1503
Page 1
Date of Hearing: April 9, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1503 (Gaines) - As Amended: March 20, 2014
Policy Committee:
AccountabilityVote:11-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the Department of General Services (DGS),
with consent from the Department of Corrections and
Rehabilitation (CDCR), to lease vacant land on the grounds of
the California State Prison at Folsom (CSP) for a peace officers
memorial and museum. Specifically, this bill:
1)Requires DGS to lease property for the museum facility to the
Old Guard Foundation, Inc., or a similar and related nonprofit
for up to 50 years, with periodic review every five years, and
at a monthly rate of $0.22 per square foot.
2)Makes the lessee fully responsible for the maintenance and
operation of the facility and exempts the state from any
liability for facility construction, operation, improvement or
maintenance.
3)Requires the lease terms to include specified circumstances
under which the property would revert to the state, and
authorizes DGS, under such circumstances, to charge the lessee
for any costs incurred in the demolition of the facility and
restoration of the property to its pre-leased condition.
4)Requires the lessee to pay all administrative costs incurred
by DGS associated with the lease and any required easements.
FISCAL EFFECT
1)Minor one-time costs (less than $10,000) for DGS to develop
and execute the lease, to be reimbursed by the lessee.
AB 1503
Page 2
2)Minor annual General Fund lease revenue.
COMMENTS
1)Purpose . According to the sponsor, the Old Guard Foundation,
Inc., the current museum space near the entrance to CSP Folsom
is "too small of a location to adequately highlight the
history of corrections, house important artifacts, honor the
men and women who serve in the corrections profession, and
dispel the negative stereotypes surrounding the corrections
system."
The author states that this bill is intended to facilitate an
arrangement with DGS and CDCR to provide for an expansion of
the current museum to a larger site on prison grounds.
According to the author, the expanded facility would be built
and operated with private donations and CDCR would have no
role in its construction or operation once a lease is
approved. CDCR reports that it has been in collaborative
discussions with the sponsor regarding an expansion of the
existing museum. According to DGS, the lease for the current
museum space was written for five years and the current rent
is $0.22 per square foot for 1150 square feet of space, for a
total of $253 per month plus utilities.
2)Recommended Amendment . The bill should not lock in a $0.22 per
square foot lease rate for up to 50 years, and should specify
that the lease rate applies to the museum facility and not the
entire property. The following amendment on page 2, line 20 is
recommended: " an initial monthly rate of twenty-two cents
($0.22) per square foot of the museum facility ."
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081