Bill Text: CA SB528 | 2015-2016 | Regular Session | Introduced

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Bill Title: State government: leases.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2016-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB528 Detail]

Download: California-2015-SB528-Introduced.html

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BILL NUMBER: SB 528	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Pan

                        FEBRUARY 26, 2015

   An act to amend Section 13332.10 of the Government Code, relating
to state government.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 528, as introduced, Pan. State government: leases.
   Existing law prohibits the Director of General Services from
entering into a building lease if the state's obligation as lessee is
for the occupancy of a state agency with a lease period of 5 years
or longer and an annual rental in excess of $10,000 unless, at least
30 days prior to entering into the lease, the director notifies, in
writing, the chairperson of the committee in each house of the
Legislature that considers appropriations and the Chairperson of the
Joint Legislative Budget Committee, as specified.
   This bill would extend the maximum lease period to 11 years, and
would make legislative findings and declarations related to these
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature hereby finds and declares that fixed
term leases of ten years or longer are the standard in the leasing
industry, and that following industry standard lease terms will
encourage greater competition in the state leasing marketplace, which
leads to lower long-term costs for lessors, decrease costs to the
state by allowing the state to amortize its tenant improvements over
a longer term, and will result in overall cost savings by the state.
Therefore, it is the intent of the Legislature, by amending Section
13332.10 of the Government Code, that the Department of General
Services should favor fixed term leases of ten years or longer.
  SEC. 2.  Section 13332.10 of the Government Code is amended to
read:
   13332.10.  The Director of General Services may not enter into a
lease agreement between the state and another entity, public or
private, in which the state is lessee if the agreement is to be for
the lease of a building or building space, or both, which will be for
the occupancy of any agency or agencies of the state with a firm
lease period of  five   eleven  years or
longer and an annual rental in excess of ten thousand dollars
($10,000), unless not less than 30 days prior to entering into the
lease the Director of General Services notifies the chairperson of
the committee in each house which considers appropriations and the
Chairperson of the Joint Legislative Budget Committee, or his or her
designee, in writing of the director's intention to enter into the
agreement, or not sooner than such lesser time as the Chairperson of
the Joint Legislative Budget Committee, or his or her designee, may
in each instance determine. No funds appropriated in any Budget Act
may be encumbered or expended for any lease entered into on or after
July 1, 1979, for office space in the County of Sacramento unless all
solicitations for leases for office space in the County of
Sacramento under the above-described conditions contain the
statement, "The state is anticipating capital construction in the
City of Sacramento and intends to eventually reduce the use of space
on a leased basis."