BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                       AB 1503|
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                                       CONSENT


          Bill No:  AB 1503
          Author:   Beth Gaines (R), et al.
          Amended:  6/2/14 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMMITTEE  :  8-0, 6/10/14
          AYES:  Correa, Cannella, De Le�n, Galgiani, Hernandez, Padilla,  
            Torres, Vidak
          NO VOTE RECORDED:  Berryhill, Lieu, Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR :  78-0, 4/28/14 (Consent) - See last page for  
            vote


          SUBJECT  :    Department of General Services:  Folsom State Prison

          SOURCE  :     Old Guard Foundation, Inc.


           DIGEST  :    This bill 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.

           ANALYSIS  :    

          Existing law:
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          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, 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.

          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 the 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.

          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  

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             lease term and substantially completed construction within 72  
             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 five 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.

           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.

          This bill allows 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 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."  Another statute authorizes DGS, "in the best interests  
          of the state," to re-negotiate a lease for the purpose of  

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          establishing an educational park, for a period not to exceed 50  
          years.  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.  

          Most relevant to this bill, 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 $1 per year.

           Comments
           
          The author's office 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's office 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's office notes that several artifacts have had to be  
          placed in other storage areas of Folsom Prison due to the lack  
          of space.  This bill allows a 50-year lease for a proposed  
          museum site on land that is currently vacant.  

          According to the author's office, the site does not conflict  
          with any CDCR operational or facility plans at either Old Folsom  
          prison or New Folsom Prison.  The facility will be built and  
          operated using private donations.  Once a lease is approved,  
          CDCR will have no role or responsibility in its construction or  
          operation.  The museum will be principally operated by  
          volunteers, many of whom are former CDCR correctional officers.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  6/23/14)

          Old Guard Foundation, Inc. (source)
          Correctional Peace Officers Foundation, Inc.


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           ARGUMENTS IN SUPPORT  :    The bill's sponsor, Old Guard  
          Foundation, Inc., writes that this bill will provide the  
          necessary statutory authority for a potential long-term lease at  
          a nominal value for the proposed National Big House Prison  
          Museum on the grounds of Folsom State Prison and that it is  
          OGF's mission to educate and inform the public of the role and  
          responsibilities of those proud individuals who wear the badge,  
          and to help advance the public's understanding of this critical  
          area of law enforcement.


           ASSEMBLY FLOOR  :  78-0, 4/28/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,  
            Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian,  
            Nestande, Olsen, Pan, Patterson, Perea, V. Manuel P�rez,  
            Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas,  
            Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,  
            Wilk, Williams, Yamada, John A. P�rez
          NO VOTE RECORDED:  Mansoor, Vacancy


          MW:d  6/25/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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