BILL ANALYSIS �
Bill No: AB
1503
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
AB 1503 Author: Gaines
As Amended: June 2, 2014
Hearing Date: June 10, 2014
Consultant: Paul Donahue
SUBJECT
Folsom State Prison museum; lease of state property
DESCRIPTION
Requires the Department of General Services (DGS), with the
consent of the Department of Corrections and Rehabilitation
(CDCR), to lease vacant real property on the grounds of
Folsom State Prison to the Old Guard Foundation, Inc. (OGF)
or a similar and related nonprofit entity, for the
construction and operation of a peace officers memorial and
museum facility. Specifically, this bill :
1)Requires the peace officers memorial and museum facility
to be operated for the benefit of the general public and
members of the OGF, which is the lessee.
2)Requires DGS to lease the property for a term not to
exceed 50 years.
3)Provides that the lessee is fully responsible for the
maintenance and operation of the memorial and museum
facility in a manner that does not conflict with
operation of adjacent correctional facilities or become a
public nuisance.
4)Specifies that the state shall not have any liability for
any improvement, construction, operation, or maintenance
of the memorial or museum facilities.
AB 1503 (Gaines) continued
PageB
5)Provides that construction and operation of the memorial
and museum are solely the responsibility of the lessee
and shall not be considered public works.
6)Requires the lessee to initiate construction of the
memorial and museum facility within 48 months of the
beginning of the lease term.
7)Requires the lessee to pay all administrative costs
incurred by DGS associated with the development and
management of the lease and any required easements.
8)Subjects the lease to periodic review every 5 years by
DGS, which shall determine, based on a report from the
lessee, whether the purposes of the lease are being
carried out.
9)Specifies that if at any time during the term of the
lease the lessee determines that the property is no
longer needed for a memorial or museum facility, or if
DGS determines that the lessee substantially abandoned
the leased property, the leased property and all
improvements to the leased property shall revert to the
state.
In that event, DGS may order the lessee to demolish and
remove all improvements and restore the premises to the
preleased condition at the lessee's expense, and if the
lessee fails to restore the leased property as directed
by DGS, the state may do so and all costs of the
demolition and restoration would be paid by lessee.
EXISTING LAW
1)Authorizes DGS to develop and review an inventory of
property surplus to the needs of the state in portions or
their entirety, and allows DGS, subject to legislative
approval, to sell, lease, exchange, or transfer various
specified properties for current market value, or upon
terms and conditions as DGS determines are in the best
interests of the state.
2)Authorizes DGS, with the consent of the state agency
concerned, to lease for a maximum period of five years,
AB 1503 (Gaines) continued
PageC
any real or personal property belonging to the state, if
the Director of DGS deems the lease is not expressly
prohibited by law and is in the best interests of the
state.
3)Requires legislative authority for leases of state land
for periods exceeding five years and provides exemptions
to the five year limit for specified parcels.
BACKGROUND
Author's purpose : The author states that in 1975, the
Retired Correctional Peace Officers Association founded the
museum at Folsom State Prison and dedicated it to prison
staff members who had died from cancer. The museum is
housed at Old House #8, just inside the entrance to Folsom
Prison, and is staffed by volunteers. The author states
that the current museum space is too small to adequately
highlight the history of CDCR, honor the members of the
profession, and help dispel negative stereotypes.
The author notes that several artifacts have had to be
placed in other storage areas of Folsom Prison due to the
lack of space. AB 1503 would allow a 50-year lease for a
proposed museum site on land that is currently vacant.
According to the author, the site does not conflict with
any CDCR operational or facility plans at either Old Folsom
prison or New Folsom Prison. The facility would be built
and operated using private donations. Once a lease is
approved, CDCR would have no role or responsibility in its
construction or operation. The museum would be principally
operated by volunteers, many of whom are former CDCR
correctional officers.
General background : The DGS reports that it has several
leases with nonprofit organizations, most of which are
leased at below market rental value. The lease
authorization contemplated in this bill is to expand the
existing museum/memorial at Folsom State Prison.
The bill was recently amended to allow DGS, CDCR, and the
lessee to negotiate the price and other terms of the lease
in order to provide for the continued use, enjoyment and
new expansion of the museum on prison property. Under
existing laws, DGS is authorized to enter into such
AB 1503 (Gaines) continued
PageD
agreements when the director determines that doing so is in
the best interests of the state.
For example, DGS may lease part of Napa State Hospital for
an independent living facility "under terms and conditions
determined by the director to be in the best interests of
the state."<1> Another statute authorizes DGS to, "in the
best interests of the state," to re-negotiate a lease for
the purpose of establishing an educational park, for a
period not to exceed 50 years.<2> Similarly, DGS may lease
the Nurses Cottage at the Agnew's Developmental Center to
nonprofits operating homeless shelters for $1 per month in
lease payments.<3>
Finally, and perhaps most relevant to AB 1503, existing
statutes direct DGS, upon terms and conditions that DGS
deems to be in the best interest of the state, to lease any
or all of the Preston Castle portion of the Ione Youth
Facility for a term not to exceed 55 years and for the
consideration of one dollar ($1) per year.<4>
PRIOR/RELATED LEGISLATION
AB 600 (Hall), 2009-2010 Session. Would have authorized DGS
to lease state owned property, the Compton Armory, to the
City of Compton at fair market value for a maximum
five-year period, with an option to extend the lease to 25
years. The Governor vetoed this bill with the following
message: "This bill is unnecessary. Current law already
authorizes DGS to enter into long-term leases on
State-owned land that may have some potential future use to
the program needs." (Vetoed)
SB 148 (Oller), Chapter 271, Statutes of 2001. This bill
-------------------------
<1> Govt. Code � 14670.15
<2> Govt. Code � 14670.2
<3> Govt. Code � 14670.25
<4> Govt. Code � 14672.98. The property in this statute is
leased to the Preston Castle Foundation, a nonprofit, for
uses that include, but are not limited to, museums, art
gallery, courtroom, city hall, hostel, adult college
classrooms and dormitory, culinary school, senior center,
and related retail.
AB 1503 (Gaines) continued
PageE
would direct the director to lease upon terms and
conditions deemed in the best interest of the state, any or
all of the Preston Castle portion of the Ione Youth
Facility for a term not to exceed 55 years for
consideration of $1 per year to the Preston Castle
Foundation for specified uses.
AB 434 (Waters), Chapter 146, Statutes of 1989. Authorizes
DGS, with the consent of CDCR, to enter into a 50-year
lease with the City of Folsom for a specified parcel within
the grounds of CSP Folsom for a water reservoir. Requires
the lease to be reviewed every five years by the Director
of DGS.
SUPPORT:
Old Guard Foundation, Inc. (sponsor)
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
**********