Existing law establishes the Department of General Services, which is under the control of the Director of General Services, within the Government Operations Agency and requires it to perform various functions and duties with respect to property within the state, including entering into lease agreements. Existing law authorizes the director, with the consent of the state agency concerned, to, among other things, let for a period not to exceed 5 years, any real or personal property that belongs to the state, the letting of which is not expressly prohibited by law, as specified. Existing law establishes various exceptions to that provision, including that the director, with the consent of the State Department of State Hospitals, may lease to a nonprofit corporation, for the purpose of conducting an educational and work program for individuals with intellectual or developmental disabilities, and for a period not to exceed 50 years, real property not exceeding 10 acres located within the grounds of the Napa State Hospital.

This bill would, as an exception to the above-described provision, also authorize the director, with the consent of the State Department of State Hospitals, to lease to a nonprofit corporation or local government, for a period not to exceed 65 years, 7 buildings located at Metropolitan State Hospital in the City of Norwalk. The bill would require the lease to be entered into for the purposes of providing care, resources, and housing to persons with, among other things, behavioral health needs, upon the terms and conditions deemed by the director to be in the best interest of the state.

Existing law establishes the Department of General Services, which is under the control of the Director of General Services, within the Government Operations Agency and requires it to perform various functions and duties with respect to property within the state, including entering into lease agreements. Existing law authorizes the director, with the consent of the state agency concerned, to, among other things, let for a period not to exceed 5 years, any real or personal property that belongs to the state, the letting of which is not expressly prohibited by law, as specified. Existing law establishes various exceptions to that provision, including that the director, with the consent of the State Department of State Hospitals, may lease to a nonprofit corporation, for the purpose of conducting an educational and work program for individuals with intellectual or developmental disabilities, and for a period not to exceed 50 years, real property not exceeding 10 acres located within the grounds of the Napa State Hospital.

This bill would, as an exception to the above-described provision, also authorize the director, with the consent of the State Department of State Hospitals, to lease to a nonprofit corporation or local government, for a period not to exceed 65 years, 7 buildings located at Metropolitan State Hospital in the City of Norwalk. The bill would require the lease to be entered into for the purposes of providing care, resources, and housing to persons with, among other things, behavioral health needs, upon the terms and conditions deemed by the director to be in the best interest of the state.

Existing law establishes the Department of General Services, which is under the control of the Director of General Services, within the Government Operations Agency and requires it to perform various functions and duties with respect to property within the state, including entering into lease agreements. Existing law authorizes the director, with the consent of the state agency concerned, to, among other things, let for a period not to exceed 5 years, any real or personal property that belongs to the state, the letting of which is not expressly prohibited by law, as specified. Existing law establishes various exceptions to that provision, including that the director, with the consent of the State Department of State Hospitals, may lease to a nonprofit corporation, for the purpose of conducting an educational and work program for individuals with intellectual or developmental disabilities, and for a period not to exceed 50 years, real property not exceeding 10 acres located within the grounds of the Napa State Hospital.

This bill would, as an exception to the above-described provision, also authorize the director, with the consent of the State Department of State Hospitals, to lease to a nonprofit corporation or local government, for a period not to exceed 55 65 years, 7 buildings located at Metropolitan State Hospital in the City of Norwalk. The bill would require the lease to be entered into for the purposes of providing specified care, resources, and housing or facilities, including adult and youth interim housing, to persons with, among other things, behavioral health needs, upon the terms and conditions deemed by the director to be in the best interest of the state.

The California Constitution requires that proceeds from the sale of surplus state property be applied to pay the principal and interest on bonds issued pursuant to the Economic Recovery Bond Act. Existing law requires a state agency to review all proprietary state lands under its jurisdiction, as specified, to determine what land is in excess of its needs, and to report on these lands to the Department of General Services. Existing law requires jurisdiction of all land reported as excess to be transferred to the Department of General Services, as specified.

This bill would make a nonsubstantive change to these latter provisions.

 UNFINISHED BUSINESS  

Bill No: SB 1336

Author: Archuleta (D), et al.

Amended: 8/20/24

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 16-0, 4/23/24

AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Smallwood-Cuevas

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SENATE FLOOR: 37-0, 5/9/24 (Consent)

AYES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Newman, Nguyen, Niello, Ochoa Bogh, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

NO VOTE RECORDED: Grove, Min, Padilla

ASSEMBLY FLOOR: 77-0, 8/26/24 - See last page for vote

SUBJECT: Department of General Services: state property: Metropolitan State Hospital

SOURCE: Author

DIGEST:

This bill authorizes the Department of General Services (DGS), with the consent of the Department of State Hospitals (DSH), to lease to a nonprofit corporation or local government, seven buildings located at Metropolitan State Hospital (MSH) in the City of Norwalk for the purposes of providing care, resources, and housing to persons with behavioral health needs or behavioral health disorders, as specified.

Assembly Amendments

(1) increases, from 55 to 65 years, the period of years that DGS can enter into a lease with the City of Norwalk, and (2) clarify that the lease shall be for the purposes of providing care, resources, and housing to persons with behavioral health needs or behavioral health disorders.

ANALYSIS:

Existing law:

1. Establishes DGS, which is under the control of the Director of DGS, within the Government Operations Agency, and requires the director to perform various functions and duties with respect to property within the state, including entering into lease agreements.
2. Authorizes DGS, subject to legislative approval, to sell, lease, exchange, or transfer various specified properties for current market value, upon such other terms and conditions DGS determines are in the best interest of the state.
3. Authorizes DGS, with the consent of the state agency concerned, to, among other things, let for a period not to exceed five years, any real personal property that belongs to the state, under otherwise prohibited or excepted.
4. Authorizes DGS, with the consent of DSH, to lease to a nonprofit corporation, for the purpose of conducting an educational and work program for individuals with intellectual developmental disabilities, and for a period not to exceed 50 years, real property not exceeding 10 acres located within the ground of the Napa State Hospital.
5. Authorizes DGS, with the consent of the California Department of Corrections and Rehabilitation, to lease a specified property located within the Medical Facility at Vacaville to a nonprofit corporation for the purpose of conducting an educational and work program for persons with intellectual disabilities, for a period not to exceed 50 years, and for the property not to exceed 10 acres.
6. Requires DGS to create a digitized inventory of all excess state land, create screening tools for prioritizing affordable housing development on excess state land, and issue requests for proposals and select affordable housing developments on excess state land, as described.
7. Establishes criteria for state agencies to use in determining and reporting excess lands. A state agency must report land as surplus that is:
   1. Not currently utilized, or is underutilized, for any existing or ongoing programs;
   2. Land for which the agency cannot identify a specific utilization relative to future needs; and
   3. Land not identified by the state agency within its master plan for facility development.

This bill:

1. Authorizes DGS, with the consent of DSH, to lease to a nonprofit corporation or local government, for a period not to exceed 65 years, seven buildings located at MSH in the City of Norwalk.
2. Requires that the lease be entered into for the purposes of providing care, resources, and housing to persons with behavioral health needs or behavioral health disorders, or both, upon terms and conditions deemed by DGS to be in the best interest of the state.

Background

Author Statement. According to the author’s office, “California is short thousands of psychiatric beds at all levels of care, according to 2021 study by Rand Corporation. California needs approximately 4,700 more psychiatric beds in counties throughout the state. In Los Angeles County, roughly 25 percent of adult homeless individuals have a serious mental illness and need care. These individuals often cycle in and out of hospitals and justice system without ever being put on a sustainable path to recovery.”

The author’s office further argues that, “SB 1336 authorize the director of DGS, with the consent of DSH, to lease seven buildings at MSH to a nonprofit corporation or local government for the purposes of providing housing to individuals with intellectual or developmental disabilities. Los Angeles County is seeking to renovate the buildings to develop a new mental health campus that will serve adults and transitional age youth with varying mental health and housing needs. By authorizing the lease of seven buildings at the MSH, the State would free up a portion of this property that is currently unused and abandoned to once again put to productive use.”

Metropolitan State Hospital. The Metropolitan State hospital (MSH) is a public hospital specializing in psychiatric care with those with mental health concerns. The MSH is located at 11400 Norwalk Blvd in the City of Norwalk in Los Angeles County. It opened in 1916 and was once a self-sufficient facility with its own farm, dairy, and animals. The hospital has an open campus within a security perimeter. Due to community concerns, this facility does not accept patients with a criminal history that includes murder, sex crimes, or escape. The hospital operates approximately 826 beds. The hospital is operated by DSH. Currently it admits four different types of categories for patient intake. The four categories are: incompetent to stand trial, offender with mental health disorder, not guilty by reason of insanity, and conservatorship Lanterman-Petris-Short Act.

Approximately 1,530 employees work at MSH providing around-the-clock care, including psychologist, psychiatrist, social workers, rehabilitation therapists, psychiatric technicians, registered nurses, psychiatric technicians, and other clinical and administrative staff. There are approximately 190 different job classifications at the facility, including hospital police, kitchen staff, custodial staff, warehouse workers, groundskeepers, information technology staff, plant operations staff, spirituals leaders, and other clinical and administrative staff.

According to the author’s office, Los Angeles County is seeking to lease seven buildings at MSH in the City of Norwalk for the purpose of providing housing to homeless individuals and providing mental health services to those individuals. The MSH currently includes seven buildings surrounding a courtyard that are unused or abandoned. Los Angeles County is seeking to renovate these buildings to create a new mental health campus that will serve adults and transitional age ground, ages 18-25, with varying mental health and housing needs.

This bill would authorize DGS, with the Consent of DSH, to lease to a nonprofit or local government, seven buildings located at MSH. There is nothing in the bill requiring DGS to enter into such lease and requires any lease to be entered into upon terms and conditions deemed by DGS to be in the best interest of the state.

Related/Prior Legislation

AB 349 (Ramos, Chapter 325, Statutes of 2023) authorized DGS, with the consent of DSH, to lease a building at Patton State Hospital to a nonprofit corporation or local government for purpose of providing services to elderly persons and providing housing to homeless individuals and providing mental health services to those individuals.

AB 2385 (Ramos, 2020) would have authorized DGS to lease the Patton State Hospital (PSH) for the purpose of providing transitional housing services. (Never Heard in the Assembly Committee on Accountability and Administrative Review)

SB 1120 (Wolk, Chapter 482, Statutes of 2016) authorized DGS, with the consent of the California Department of Corrections and Rehabilitation, to renew an existing lease agreement with the Solano County Office of Education for the operation of the Irene Larsen Education Center for persons with intellectual disabilities on land located within the ground of the Medical Facility at Vacaville for a period not to exceed 50 years.

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

According to the Assembly Appropriations Committee, minor one-time and ongoing costs to DGS to draft and review the terms of the lease. DGS notes such costs would ultimately be recovered through fees.

Additionally, ongoing revenue gain of an unknown, but likely minor, amount from leasing the hospital buildings. DGS does not have an estimate of potential lease revenues, but notes existing law allows DGS to lease state real property at less than fair market rent to a public agency if the lease is of broad public benefit. DGS has generally leased property for a nominal amount if used for affordable housing development.

Finally, absorbable one-time costs to DSH to review a lease proposal and other related studies to determine the potential impacts of the lease to DSH operations. Ongoing costs to DSH would be minimized to the extent the terms of the lease fully account for costs related to the intended development and use of the land, ongoing maintenance, and measures to mitigate potential impacts to DSH operations. Ultimately, DSH may withhold consent for the lease.

SUPPORT: (Verified 8/22/24)

Los Angeles County Board of Supervisors

OPPOSITION: (Verified 8/22/24)

None received

ARGUMENTS IN SUPPORT: According to the Los Angeles County Board of Supervisors, “SB 1336 would authorize the County, with the consent of the State Department of State Hospitals, to lease, for a period not to exceed 55 years, seven buildings located at MSH in the City of Norwalk for the purposes of providing interim or permanent supportive housing for adults and youth psychiatric subacute facilities. This arrangement would address one of the barriers the County of Los Angeles often encounters when attempting to site and develop new facilities to help serve dependent populations throughout the County.

ASSEMBLY FLOOR: 77-0, 8/26/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Cervantes, Ortega

Click here to enter text.

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

8/28/24 12:40:46

**** END ****

SENATE THIRD READING

STR Bill Id:SB 1336

Author:(Archuleta)

As Amended Ver:August 20, 2024

Majority vote

SUMMARY

This bill would the Department of General Services (DGS), with the consent of the State Department of State Hospitals, to lease to a nonprofit corporation or local government, for a period not to exceed 65 years, seven buildings located at Metropolitan State Hospital in the City of Norwalk. The DGS director must deem the terms and conditions of the lease to be in the best interest of the state.

Major Provisions

1. Provides, the Director of DGS, with the consent of the State Department of State Hospitals, may lease to a nonprofit corporation or local government, for a period not to exceed 65 years, seven buildings located at Metropolitan State Hospital in the City of Norwalk.
2. Provides the lease shall be entered into for the purposes of providing care, resources, and housing to persons with behavioral health needs or behavioral health disorders, or both, upon the terms and conditions deemed by the director to be in the best interest of the state

COMMENTS

Background.

The Metropolitan State hospital (MSH) is a public hospital specializing in psychiatric care with those with mental health concerns. The MSH is located in the City of Norwalk in Los Angeles County. It opened in 1916 and was once a self-sufficient facility with its own farm, dairy, and animals. The hospital operates approximately 826 beds. The MSH currently has seven buildings surrounding a courtyard that are unused or abandoned.

Currently, the MSH leases space to nonprofit organizations providing temporary housing and services to homeless families (Rio Hondo Temporary Home) and long-term housing for persons with mental illness (Homes for Life). MSH also leases ground space to several other entities, including the Wheelabrator Cogeneration Plant (produces steam electricity) and California Conservation Corps.

This bill would authorize DGS, with the consent of Department of State Hospitals (DSH), to lease to a nonprofit or local government, seven buildings located at MSH. Nothing in the bill requires DGS to enter into a lease of this kind, and any lease must be signed on terms that DGS determines are in the best interests of the state.

According to the Author

According to the author's office, "California is short thousands of psychiatric beds at all levels of care, according to 2021 study by Rand Corporation. California needs approximately 4,700 more psychiatric beds in counties throughout the state. In Los Angeles County, roughly 25% of adult homeless individuals have a serious mental illness and need care. These individuals often cycle in and out of hospitals and justice system without ever being put on a sustainable path to recovery."

The author's office further states that, "SB 1336 authorize the director of DGS, with the consent of DSH, to lease seven buildings at MSH to a nonprofit corporation or local government for the purposes of providing housing to individuals with intellectual or developmental disabilities. Los Angeles County is seeking to renovate the buildings to develop a new mental health campus that will serve adults and transitional age youth with varying mental health and housing needs. By authorizing the lease of seven buildings at the MSH, the State would free up a portion of this property that is currently unused and abandoned to once again put to productive use."

Arguments in Support

According to the Los Angeles County Board of Supervisors, "This bill would authorize the County, with the consent of the State Department of State Hospitals, to lease, for a period not to exceed 55 years, seven buildings located at MSH in the City of Norwalk for the purposes of providing interim or permanent supportive housing for adults and youth psychiatric subacute facilities. This arrangement would address one of the barriers the County of Los Angeles often encounters when attempting to site and develop new facilities to help serve dependent populations throughout the County."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee analysis, 1) Minor one-time and ongoing costs to DGS to draft and review the terms of the lease. DGS notes such costs would ultimately be recovered through fees. Additionally, ongoing revenue gain of an unknown, but likely minor, amount from leasing the hospital buildings. DGS does not have an estimate of potential lease revenues, but notes existing law allows DGS to lease state real property at less than fair market rent to a public agency if the lease is of broad public benefit. DGS has generally leased property for a nominal amount if used for affordable housing development. 2) Absorbable one-time costs to DSH to review a lease proposal and other related studies to determine the potential impacts of the lease to DSH operations. Ongoing costs to DSH would be minimized to the extent the terms of the lease fully account for costs related to the intended development and use of the land, ongoing maintenance, and measures to mitigate potential impacts to DSH operations. Ultimately, DSH may withhold consent for the lease.

VOTES

SENATE FLOOR: 37-0-3

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Newman, Nguyen, Niello, Ochoa Bogh, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Grove, Min, Padilla

ASM GOVERNMENTAL ORGANIZATION: 19-0-3

YES: Blanca Rubio, Lackey, Addis, Bains, Bryan, Cervantes, Davies, Dixon, Gabriel, Gipson, Low, McKinnor, Pacheco, Papan, Jim Patterson, Soria, Ta, Valencia, Wallis

ABS, ABST OR NV: Haney, Jones-Sawyer, Ramos

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua

UPDATED

VERSION: August 20, 2024

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0004165

SENATE THIRD READING

STR Bill Id:SB 1336

Author:(Archuleta)

As Amended Ver:March 20, 2024

Majority vote

SUMMARY

This bill would authorize the Department of General Services (DGS), with the consent of the Department of State Hospitals (DSH), to lease seven buildings located at Metropolitan State Hospital in the City of Norwalk to a non-profit corporation or local government. This bill requires the lease be entered into to provide persons with intellectual or developmental disabilities with: (a) adult and youth interim housing or permanent supportive housing, and (b) psychiatric subacute facilities. The DGS director must deem the terms and conditions of the lease to be in the best interest of the state.

Major Provisions

1. Provides, the Director of DGS, with the consent of the State Department of State Hospitals, may lease to a nonprofit corporation or local government, for a period not to exceed 55 years, seven buildings located at Metropolitan State Hospital in the City of Norwalk.
2. Provides the lease shall be entered into for the purposes of providing housing or facilities, as defined, to persons with intellectual or developmental disabilities, upon the terms and conditions deemed by the director to be in the best interest of the state.
3. Provides that the housing provided on the leased premises shall be adult and youth interim housing or permanent supportive housing.
4. States that the facilities provided on the leased premises shall be psychiatric subacute facilities.

COMMENTS

Background.

The Metropolitan State hospital (MSH) is a public hospital specializing in psychiatric care with those with mental health concerns. The MSH is located in the City of Norwalk in Los Angeles County. It opened in 1916 and was once a self-sufficient facility with its own farm, dairy, and animals. The hospital operates approximately 826 beds. The MSH currently has seven buildings surrounding a courtyard that are unused or abandoned.

Currently, the MSH leases space to nonprofit organizations providing temporary housing and services to homeless families (Rio Hondo Temporary Home) and long-term housing for persons with mental illness (Homes for Life). MSH also leases ground space to several other entities, including the Wheelabrator Cogeneration Plant (produces steam electricity) and California Conservation Corps.

This bill would authorize DGS, with the consent of DSH, to lease to a nonprofit or local government, seven buildings located at MSH. Nothing in the bill requires DGS to enter into a lease of this kind, and any lease must be signed on terms that DGS determines are in the best interests of the state.

According to the Author

According to the author's office, "California is short thousands of psychiatric beds at all levels of care, according to 2021 study by Rand Corporation. California needs approximately 4,700 more psychiatric beds in counties throughout the state. In Los Angeles County, roughly 25% of adult homeless individuals have a serious mental illness and need care. These individuals often cycle in and out of hospitals and justice system without ever being put on a sustainable path to recovery."

The author's office further states that, "SB 1336 authorize the director of DGS, with the consent of DSH, to lease seven buildings at MSH to a nonprofit corporation or local government for the purposes of providing housing to individuals with intellectual or developmental disabilities. Los Angeles County is seeking to renovate the buildings to develop a new mental health campus that will serve adults and transitional age youth with varying mental health and housing needs. By authorizing the lease of seven buildings at the MSH, the State would free up a portion of this property that is currently unused and abandoned to once again put to productive use."

Arguments in Support

According to the Los Angeles County Board of Supervisors, "This bill would authorize the County, with the consent of the State Department of State Hospitals, to lease, for a period not to exceed 55 years, seven buildings located at MSH in the City of Norwalk for the purposes of providing interim or permanent supportive housing for adults and youth psychiatric subacute facilities. This arrangement would address one of the barriers the County of Los Angeles often encounters when attempting to site and develop new facilities to help serve dependent populations throughout the County."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee analysis, 1) Minor one-time and ongoing costs to DGS to draft and review the terms of the lease. DGS notes such costs would ultimately be recovered through fees. Additionally, ongoing revenue gain of an unknown, but likely minor, amount from leasing the hospital buildings. DGS does not have an estimate of potential lease revenues, but notes existing law allows DGS to lease state real property at less than fair market rent to a public agency if the lease is of broad public benefit. DGS has generally leased property for a nominal amount if used for affordable housing development. 2) Absorbable one-time costs to DSH to review a lease proposal and other related studies to determine the potential impacts of the lease to DSH operations. Ongoing costs to DSH would be minimized to the extent the terms of the lease fully account for costs related to the intended development and use of the land, ongoing maintenance, and measures to mitigate potential impacts to DSH operations. Ultimately, DSH may withhold consent for the lease.

VOTES

SENATE FLOOR: 37-0-3

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Newman, Nguyen, Niello, Ochoa Bogh, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Grove, Min, Padilla

ASM GOVERNMENTAL ORGANIZATION: 19-0-3

YES: Blanca Rubio, Lackey, Addis, Bains, Bryan, Cervantes, Davies, Dixon, Gabriel, Gipson, Low, McKinnor, Pacheco, Papan, Jim Patterson, Soria, Ta, Valencia, Wallis

ABS, ABST OR NV: Haney, Jones-Sawyer, Ramos

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua

UPDATED

VERSION: March 20, 2024

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0003755

Date of Hearing: July 2, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

SBPCA Bill Id:SB 1336

Author:(Archuleta) – As Amended Ver:March 20, 2024

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes the Department of General Services (DGS), with the consent of the Department of State Hospitals (DSH), to lease seven buildings located at Metropolitan State Hospital in the City of Norwalk to a non-profit corporation or local government.

This bill requires the lease be entered into to provide persons with intellectual or developmental disabilities with: (a) adult and youth interim housing or permanent supportive housing, and (b) psychiatric subacute facilities. The DGS director must deem the terms and conditions of the lease to be in the best interest of the state.

FISCAL EFFECT:

1. Minor one-time and ongoing costs to DGS to draft and review the terms of the lease. DGS notes such costs would ultimately be recovered through fees.

Additionally, ongoing revenue gain of an unknown, but likely minor, amount from leasing the hospital buildings. DGS does not have an estimate of potential lease revenues, but notes existing law allows DGS to lease state real property at less than fair market rent to a public agency if the lease is of broad public benefit. DGS has generally leased property for a nominal amount if used for affordable housing development.

1. Absorbable one-time costs to DSH to review a lease proposal and other related studies to determine the potential impacts of the lease to DSH operations. Ongoing costs to DSH would be minimized to the extent the terms of the lease fully account for costs related to the intended development and use of the land, ongoing maintenance, and measures to mitigate potential impacts to DSH operations. Ultimately, DSH may withhold consent for the lease.

COMMENTS:

1. Purpose. According to the author:

Los Angeles County is seeking to renovate the buildings to develop a new mental health campus that will serve adults and transitional age youth with varying mental health and housing needs. By authorizing the lease of seven buildings at the [Metropolitan State Hospital], the State would free up a portion of this property that is currently unused and abandoned to once again put to productive use.

This bill is supported by the Los Angeles County Board of Supervisors.

1. Metropolitan State Hospital. Metropolitan State Hospital operates approximately 826 beds in the City of Norwalk. The hospital also leases space to other entities, including the California Conservation Corps, a steam electricity plant, Rio Hondo Temporary Home, which provides temporary housing and services to homeless families, and Homes for Life, which provides long-term housing for persons with mental illness. The Metropolitan State Hospital currently has seven buildings surrounding a courtyard that are unused or abandoned. This bill authorizes DGS, with the consent of DSH, to lease those unused buildings to a non-profit organization or local government to provide housing and psychiatric care to persons with intellectual or developmental disabilities.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: June 19, 2024

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

SBPCA Bill Id:SB 1336

Author:(Archuleta) – As Amended Ver:March 20, 2024

SENATE VOTE: 37-0

SUBJECT: Department of General Services: state property: Metropolitan State Hospital

SUMMARY: This bill would authorize the Director of General Services (DGS), with the consent of the Department of State Hospitals (DSH), to lease to a nonprofit corporation or local government, for a period not to exceed 55 years, 7 buildings located at Metropolitan State Hospital (MSH) in the City of Norwalk. The lease shall be entered into for the purposes of providing housing or facilities, as specified, to persons with intellectual or developmental disabilities, upon the terms and conditions deemed by the director to be in the best interest of the state. Specifically, this bill:

1) Provides, the Director of DGS, with the consent of the State Department of State Hospitals, may lease to a nonprofit corporation or local government, for a period not to exceed 55 years, 7 buildings located at Metropolitan State Hospital in the City of Norwalk.

2) Provides the lease shall be entered into for the purposes of providing housing or facilities, as defined, to persons with intellectual or developmental disabilities, upon the terms and conditions deemed by the director to be in the best interest of the state.

3) Provides that the housing provided on the leased premises shall be adult and youth interim housing or permanent supportive housing.

4) States that the facilities provided on the leased premises shall be psychiatric subacute facilities.

EXISTING LAW:

1) Establishes DGS, which is under the control of the Director of DGS, within the Government Operations Agency, and requires the director to perform various functions and duties with respect to property within the state, including entering into lease agreements.

2) Authorizes DGS, subject to legislative approval, to sell, lease, exchange, or transfer various specified properties for current market value, upon such other terms and conditions DGS determines are in the best interest of the state.

3) Authorizes DGS, with the consent of the state agency concerned, to, among other things, let for a period not to exceed five years, any real personal property that belongs to the state, under otherwise prohibited or excepted.

4) Authorizes DGS, with the consent of DSH, to lease to a nonprofit corporation, for the purpose of conducting an educational and work program for individuals with intellectual developmental disabilities, and for a period not to exceed 50 years, real property not exceeding 10 acres located within the ground of the Napa State Hospital.

5) Authorizes DGS, with the consent of the California Department of Corrections and Rehabilitation, to lease a specified property located within the Medical Facility at Vacaville to a nonprofit corporation for the purpose of conducting an educational and work program for persons with intellectual disabilities, for a period not to exceed 50 years, and for the property not to exceed 10 acres.

6) Requires DGS to create a digitized inventory of all excess state land, create screening tools for prioritizing affordable housing development on excess state land, and issue requests for proposals and select affordable housing developments on excess state land, as described.

7) Establishes criteria for state agencies to use in determining and reporting excess lands. A state agency must report land as surplus that is:

a) Not currently utilized, or is underutilized, for any existing or ongoing programs;

b) Land for which the agency cannot identify a specific utilization relative to future needs; and

c) Land not identified by the state agency within its master plan for facility development.

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose of the bill. According to the author’s office, “California is short thousands of psychiatric beds at all levels of care, according to 2021 study by Rand Corporation. California needs approximately 4,700 more psychiatric beds in counties throughout the state. In Los Angeles County, roughly 25 percent of adult homeless individuals have a serious mental illness and need care. These individuals often cycle in and out of hospitals and justice system without ever being put on a sustainable path to recovery.”

The author’s office further states that, “SB 1336 authorize the director of DGS, with the consent of DSH, to lease seven buildings at MSH to a nonprofit corporation or local government for the purposes of providing housing to individuals with intellectual or developmental disabilities. Los Angeles County is seeking to renovate the buildings to develop a new mental health campus that will serve adults and transitional age youth with varying mental health and housing needs. By authorizing the lease of seven buildings at the MSH, the State would free up a portion of this property that is currently unused and abandoned to once again put to productive use.”

Background.

Metropolitan State Hospital. The Metropolitan State hospital (MSH) is a public hospital specializing in psychiatric care with those with mental health concerns. The MSH is located at 11400 Norwalk Blvd in the City of Norwalk in Los Angeles County. It opened in 1916 and was once a self-sufficient facility with its own farm, dairy, and animals. The hospital has an open campus within a security perimeter. Due to community concerns, this facility does not accept patients with a criminal history that includes murder, sex crimes, or escape. The hospital operates approximately 826 beds. The hospital is operated by DSH. Currently it admits four different types of categories for patient intake. The four categories are: incompetent to stand trial, offender with mental health disorder, not guilty by reason of insanity, and conservatorship Lanterman-Petris-Short Act.

Approximately 1,530 employees work at MSH providing around-the-clock care, including psychologist, psychiatrist, social workers, rehabilitation therapists, psychiatric technicians, registered nurses, psychiatric technicians, and other clinical and administrative staff. There are approximately 190 different job classifications at the facility, including hospital police, kitchen staff, custodial staff, warehouse workers, groundskeepers, information technology staff, plant operations staff, spirituals leaders, and other clinical and administrative staff.

Currently, the MSH leases space to nonprofit organizations providing temporary housing and services to homeless families (Rio Hondo Temporary Home) and long-term housing for persons with mental illness (Homes for Life). MSH also leases ground space to several other entities, including the Wheelabrator Cogeneration Plant (produces steam electricity) and California Conservation Corps.

The MSH currently includes seven buildings surrounding a courtyard that are unused or abandoned. Los Angeles County is seeking to renovate these buildings to create a new mental health campus that will serve adults and transitional age ground, ages 18-25, with varying mental health and housing needs.

DGS has authorized numerous state property lease agreements with nonprofit corporations and local governments to provide services to Californians that are in the best interest of the state. This bill would authorize DGS, with the consent of DSH, to lease to a nonprofit or local government, seven buildings located at MSH. Nothing in the bill requires DGS to enter into a lease of this kind, and any lease must be signed on terms that DGS determines are in the best interests of the state.

In support. According to the Los Angeles County Board of Supervisors, “This bill would authorize the County, with the consent of the State Department of State Hospitals, to lease, for a period not to exceed 55 years, seven buildings located at MSH in the City of Norwalk for the purposes of providing interim or permanent supportive housing for adults and youth psychiatric subacute facilities. This arrangement would address one of the barriers the County of Los Angeles often encounters when attempting to site and develop new facilities to help serve dependent populations throughout the County.”

Related legislation. AB 1635 (Ward) of 2024. By December 1, 2028, this bill would require the DGS to negotiate and execute a legally binding ground lease for the Hillcrest property (Department of Motor Vehicles facilities) in San Diego, as defined, to allow for the development of housing development projects. (Pending in the Senate Governmental Organization Committee)

SB 536 (S. Rubio) of 2024. This bill would the Director of DGS to sell or lease property, known as the Department of Corrections and Rehabilitation Heman G. Stark Youth Correctional Facility, located in the City of Chino, in the County of San Bernardino, to the City of Chino at fair market value upon terms and conditions the Director determines are in the best interests of the state. (Pending in the Assembly Committee on Governmental Organization)

SB 958 (Dodd) of 2024. This bill would authorize the DGS to sell or exchange, at fair market value, the property known as Camp Coombs in the County of Napa to the County of Napa or the Napa County Regional and Open Space District by January 1, 2026, as specified. (Pending in the Assembly Committee on Governmental Organization)

Prior legislation. AB 349 (Ramos), Chapter 325, Statutes of 2023. Authorized DGS, with the consent of DSH, to lease a building at Patton State Hospital to a nonprofit corporation or local government for purpose of providing services to elderly persons and providing housing to homeless individuals and providing mental health services to those individuals.

AB 2233 (Quirk-Silva), Chapter 438, Statutes of 2022. Requires the DGS to develop a plan to facilitate development of affordable housing on state-owned excess land, as specified.

SB 561 (Dodd), Chapter 446, Statutes of 2022. This bill requires the DGS, in consultation with the California Department of Housing and Community Development, to develop criteria to evaluate the suitability of excess state-owned parcels for affordable housing, as specified.

AB 2385 (Ramos) of 2020. The bill would have authorized DGS to lease the Patton State Hospital (PSH) for the purpose of providing transitional housing services. (Never Heard in the Assembly Committee on Accountability and Administrative Review)

SB 1120 (Wolk), Chapter 482, Statutes of 2016. Authorized DGS, with the consent of the California Department of Corrections and Rehabilitation, to renew an existing lease agreement with the Solano County Office of Education for the operation of the Irene Larsen Education Center for persons with intellectual disabilities on land located within the ground of the Medical Facility at Vacaville for a period not to exceed 50 years.

SB 528 (Pan) of 2015. The bill would have increased the maximum term for DGS to enter into lease agreements for the acquisition of property from five to 11 years without requiring Legislative oversight. (Never Heard in the Senate Committee on Governmental Organization)

AB 166 (Gaines), Chapter 211, Statutes of 2015. Authorized DGS, with the consent of CDCR, to enter into a long-term lease for land on the grounds of the California State Prison at Folsom for a non-state funded peace officers memorial and museum.

AB 1503 (Gaines) of 2014. The bill would have required DGS, with the consent of CDCR, to lease vacant real property on the grounds of Folsom State Prison to the Old Guard Foundation, Inc., or a similar and related nonprofit entity, for the construction and operation of a peace officers memorial and museum facility. (Vetoed by the Governor)

SB 1217 (Dutton), Chapter 707, Statutes of 2012. Reauthorized a statute that expressly allows the Director of DGS, with the consent of the Department of State Hospitals, to lease a building located at Patton State Hospital to a nonprofit corporation or local government, for a period not to exceed 20 years, for the purpose of providing services to elderly persons.

REGISTERED SUPPORT / OPPOSITION:

Support

Los Angeles County Board of Supervisors

Opposition

None on file

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531

 CONSENT  

Bill No: SB 1336

Author: Archuleta (D)

Amended: 3/20/24

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 16-0, 4/23/24

AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Smallwood-Cuevas

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Department of General Services: state property: Metropolitan State Hospital

SOURCE: Author

DIGEST: This bill authorizes the Department of General Services (DGS), with the consent of the Department of State Hospitals (DSH), to lease to a nonprofit corporation or local government, seven buildings located at Metropolitan State Hospital (MSH) in the City of Norwalk for the purposes of providing housing or facilities, including adult and youth interim housing.

ANALYSIS:

Existing law:

1. Establishes DGS, which is under the control of the Director of DGS, within the Government Operations Agency, and requires the director to perform various functions and duties with respect to property within the state, including entering into lease agreements.
2. Authorizes DGS, subject to legislative approval, to sell, lease, exchange, or transfer various specified properties for current market value, upon such other terms and conditions DGS determines are in the best interest of the state.
3. Authorizes DGS, with the consent of the state agency concerned, to, among other things, let for a period not to exceed five years, any real personal property that belongs to the state, under otherwise prohibited or excepted.
4. Authorizes DGS, with the consent of DSH, to lease to a nonprofit corporation, for the purpose of conducting an educational and work program for individuals with intellectual developmental disabilities, and for a period not to exceed 50 years, real property not exceeding 10 acres located within the ground of the Napa State Hospital.
5. Authorizes DGS, with the consent of the California Department of Corrections and Rehabilitation, to lease a specified property located within the Medical Facility at Vacaville to a nonprofit corporation for the purpose of conducting an educational and work program for persons with intellectual disabilities, for a period not to exceed 50 years, and for the property not to exceed 10 acres.
6. Requires DGS to create a digitized inventory of all excess state land, create screening tools for prioritizing affordable housing development on excess state land, and issue requests for proposals and select affordable housing developments on excess state land, as described.
7. Establishes criteria for state agencies to use in determining and reporting excess lands. A state agency must report land as surplus that is:
   1. Not currently utilized, or is underutilized, for any existing or ongoing programs;
   2. Land for which the agency cannot identify a specific utilization relative to future needs; and
   3. Land not identified by the state agency within its master plan for facility development.

This bill:

1. Authorizes DGS, with the consent of DSH, to lease to a nonprofit corporation or local government, for a period not to exceed 55 years, seven buildings located at MSH in the City of Norwalk.
2. Requires the lease be entered into upon the terms and conditions deemed by DGS to be in the best interest of the state.
3. Requires that housing provided on the leased premises be for adult and youth interim housing or permanent supportive housing.
4. Requires that facilities provided on the leased premises shall be psychiatric subacute facilities.

Background

Author Statement. According to the author’s office, “California is short thousands of psychiatric beds at all levels of care, according to 2021 study by Rand Corporation. California needs approximately 4,700 more psychiatric beds in counties throughout the state. In Los Angeles County, roughly 25 percent of adult homeless individuals have a serious mental illness and need care. These individuals often cycle in and out of hospitals and justice system without ever being put on a sustainable path to recovery.”

The author’s office further argues that, “SB 1336 authorize the director of DGS, with the consent of DSH, to lease seven buildings at MSH to a nonprofit corporation or local government for the purposes of providing housing to individuals with intellectual or developmental disabilities. Los Angeles County is seeking to renovate the buildings to develop a new mental health campus that will serve adults and transitional age youth with varying mental health and housing needs. By authorizing the lease of seven buildings at the MSH, the State would free up a portion of this property that is currently unused and abandoned to once again put to productive use.”

Metropolitan State Hospital. The Metropolitan State hospital (MSH) is a public hospital specializing in psychiatric care with those with mental health concerns. The MSH is located at 11400 Norwalk Blvd in the City of Norwalk in Los Angeles County. It opened in 1916 and was once a self-sufficient facility with its own farm, dairy, and animals. The hospital has an open campus within a security perimeter. Due to community concerns, this facility does not accept patients with a criminal history that includes murder, sex crimes, or escape. The hospital operates approximately 826 beds. The hospital is operated by DSH. Currently it admits four different types of categories for patient intake. The four categories are: incompetent to stand trial, offender with mental health disorder, not guilty by reason of insanity, and conservatorship Lanterman-Petris-Short Act.

Approximately 1,530 employees work at MSH providing around-the-clock care, including psychologist, psychiatrist, social workers, rehabilitation therapists, psychiatric technicians, registered nurses, psychiatric technicians, and other clinical and administrative staff. There are approximately 190 different job classifications at the facility, including hospital police, kitchen staff, custodial staff, warehouse workers, groundskeepers, information technology staff, plant operations staff, spirituals leaders, and other clinical and administrative staff.

According to the author’s office, Los Angeles County is seeking to lease seven buildings at MSH in the City of Norwalk for the purpose of providing housing to homeless individuals and providing mental health services to those individuals. The MSH currently includes seven buildings surrounding a courtyard that are unused or abandoned. Los Angeles County is seeking to renovate these buildings to create a new mental health campus that will serve adults and transitional age ground, ages 18-25, with varying mental health and housing needs.

This bill would authorize DGS, with the Consent of DSH, to lease to a nonprofit or local government, seven buildings located at MSH. There is nothing in the bill requiring DGS to enter into such lease and requires any lease to be entered into upon terms and conditions deemed by DGS to be in the best interest of the state.

Related/Prior Legislation

AB 349 (Ramos, Chapter 325, Statutes of 2023) authorized DGS, with the consent of DSH, to lease a building at Patton State Hospital to a nonprofit corporation or local government for purpose of providing services to elderly persons and providing housing to homeless individuals and providing mental health services to those individuals.

AB 2385 (Ramos, 2020) would have authorized DGS to lease the Patton State Hospital (PSH) for the purpose of providing transitional housing services. (Never Heard in the Assembly Committee on Accountability and Administrative Review)

SB 1120 (Wolk, Chapter 482, Statutes of 2016) authorized DGS, with the consent of the California Department of Corrections and Rehabilitation, to renew an existing lease agreement with the Solano County Office of Education for the operation of the Irene Larsen Education Center for persons with intellectual disabilities on land located within the ground of the Medical Facility at Vacaville for a period not to exceed 50 years.

SB 528 (Pan, 2015) would have increased the maximum term for DGS to enter into lease agreements for the acquisition of property from five to 11 years without requiring Legislative oversight. (Never Heard in the Senate Committee on Governmental Organization)

AB 166 (Gaines, Chapter 211, Statutes of 2015) authorized DGS, with the consent of CDCR, to enter into a long-term lease for land on the grounds of the California State Prison at Folsom for a non-state funded peace officers memorial and museum.

AB 1503 (Gaines, 2014) would have required DGS, with the consent of CDCR, to lease vacant real property on the grounds of Folsom State Prison to the Old Guard Foundation, Inc., or a similar and related nonprofit entity, for the construction and operation of a peace officers memorial and museum facility. (Vetoed by the Governor)

SB 1217 (Dutton, Chapter 707, Statutes of 2012) reauthorized a statute that expressly allows the Director of DGS, with the consent of the Department of State Hospitals, to lease a building located at Patton State Hospital to a nonprofit corporation or local government, for a period not to exceed 20 years, for the purpose of providing services to elderly persons.

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

SUPPORT: (Verified 5/6/24)

Los Angeles County Board of Supervisors

OPPOSITION: (Verified 5/6/24)

None received

ARGUMENTS IN SUPPORT: According to the Los Angeles County Board of Supervisors, “SB 1336 would authorize the County, with the consent of the State Department of State Hospitals, to lease, for a period not to exceed 55 years, seven buildings located at MSH in the City of Norwalk for the purposes of providing interim or permanent supportive housing for adults and youth psychiatric subacute facilities. This arrangement would address one of the barriers the County of Los Angeles often encounters when attempting to site and develop new facilities to help serve dependent populations throughout the County.

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

5/7/24 10:52:31

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2023 - 2024 Regular

Bill No: 1336 Hearing Date: 4/23/2024

SUBJECT: Department of General Services: state property: Metropolitan State Hospital

DIGEST: This bill authorizes the Department of General Services (DGS), with the consent of the Department of State Hospitals (DSH), to lease to a nonprofit corporation or local government, seven buildings located at Metropolitan State Hospital (MSH) in the City of Norwalk for the purposes of providing housing or facilities, including adult and youth interim housing.

ANALYSIS:

Existing law:

1. Establishes DGS, which is under the control of the Director of DGS, within the Government Operations Agency, and requires the director to perform various functions and duties with respect to property within the state, including entering into lease agreements.
2. Authorizes DGS, subject to legislative approval, to sell, lease, exchange, or transfer various specified properties for current market value, upon such other terms and conditions DGS determines are in the best interest of the state.
3. Authorizes DGS, with the consent of the state agency concerned, to, among other things, let for a period not to exceed five years, any real personal property that belongs to the state, under otherwise prohibited or excepted.
4. Authorizes DGS, with the consent of DSH, to lease to a nonprofit corporation, for the purpose of conducting an educational and work program for individuals with intellectual developmental disabilities, and for a period not to exceed 50 years, real property not exceeding 10 acres located within the ground of the Napa State Hospital.
5. Authorizes DGS, with the consent of the California Department of Corrections and Rehabilitation, to lease a specified property located within the Medical Facility at Vacaville to a nonprofit corporation for the purpose of conducting an educational and work program for persons with intellectual disabilities, for a period not to exceed 50 years, and for the property not to exceed 10 acres.
6. Requires DGS to create a digitized inventory of all excess state land, create screening tools for prioritizing affordable housing development on excess state land, and issue requests for proposals and select affordable housing developments on excess state land, as described.
7. Establishes criteria for state agencies to use in determining and reporting excess lands. A state agency must report land as surplus that is:
   1. Not currently utilized, or is underutilized, for any existing or ongoing programs;
   2. Land for which the agency cannot identify a specific utilization relative to future needs; and,
   3. Land not identified by the state agency within its master plan for facility development.

This bill:

1. Authorizes DGS, with the consent of DSH, to lease to a nonprofit corporation or local government, for a period not to exceed 55 years, seven buildings located at MSH in the City of Norwalk.
2. Requires the lease be entered into upon the terms and conditions deemed by DGS to be in the best interest of the state.
3. Requires that housing provided on the leased premises be for adult and youth interim housing or permanent supportive housing.
4. Requires that facilities provided on the leased premises shall be psychiatric subacute facilities.

Background

Author Statement. According to the author’s office, “California is short thousands of psychiatric beds at all levels of care, according to 2021 study by Rand Corporation. California needs approximately 4,700 more psychiatric beds in counties throughout the state. In Los Angeles County, roughly 25 percent of adult homeless individuals have a serious mental illness and need care. These individuals often cycle in and out of hospitals and justice system without ever being put on a sustainable path to recovery.”

The author’s office further argues that, “SB 1336 authorize the director of DGS, with the consent of DSH, to lease seven buildings at MSH to a nonprofit corporation or local government for the purposes of providing housing to individuals with intellectual or developmental disabilities. Los Angeles County is seeking to renovate the buildings to develop a new mental health campus that will serve adults and transitional age youth with varying mental health and housing needs. By authorizing the lease of seven buildings at the MSH, the State would free up a portion of this property that is currently unused and abandoned to once again put to productive use.”

Metropolitan State Hospital. The Metropolitan State hospital is a public hospital specializing in psychiatric care with those with mental health concerns. The MSH is located at 11400 Norwalk Blvd in the City of Norwalk in Los Angeles County. It opened in 1916 and was once a self-sufficient facility with its own farm, dairy, and animals. The hospital has an open campus within a security perimeter. Due to community concerns, this facility does not accept patients with a criminal history that includes murder, sex crimes, or escape. The hospital operates approximately 826 beds. The hospital is operated by DHS. Currently it admits four different types of categories for patient intake. The four categories are: incompetent to stand trial, offender with mental health disorder, not guilty by reason of insanity, and conservatorship Lanterman-Petris-Short Act.

Approximately 1,530 employees work at MSH providing around-the-clock care, including psychologist, psychiatrist, social workers, rehabilitation therapists, psychiatric technicians, registered nurses, psychiatric technicians, and other clinical and administrative staff. There are approximately 190 different job classifications at the facility, including hospital police, kitchen staff, custodial staff, warehouse workers, groundskeepers, information technology staff, plant operations staff, spirituals leaders, and other clinical and administrative staff.

According to the author’s office, Los Angeles County is seeking to lease seven buildings at MSH in the City of Norwalk for the purpose of providing housing to homeless individuals and providing mental health services to those individuals. The MSH currently includes seven buildings surrounding a courtyard that are unused or abandoned. Los Angeles County is seeking to renovate these buildings to create a new mental health campus that will serve adults and transitional age ground, ages 18-25, with varying mental health and housing needs.

This bill would authorize DGS, with the Consent of DSH, to lease to a nonprofit or local government, seven buildings located at MSH. There is nothing in the bill requiring DGS to enter into such lease and requires any lease to be entered into upon terms and conditions deemed by DGS to be in the best interest of the state.

Prior/Related Legislation

AB 349 (Ramos, Chapter 325, Statutes of 2023) authorizes DGS, with the consent of DSH, to lease a building at Patton State Hospital to a nonprofit corporation or local government for purpose of providing services to elderly persons and providing housing to homeless individuals and providing mental health services to those individuals.

AB 2385 (Ramos, 2020) would have authorize DGS to lease the PSH for the purpose of providing transitional housing services. (Never Heard in the Assembly Accountability and Administrative Review Committee)

SB 1120 (Wolk, Chapter 482, Statutes of 2016) authorizes DGS, with the consent of the California Department of Corrections and Rehabilitation, to renew an existing lease agreement with the Solano County Office of Education for the operation of the Irene Larsen Education Center for persons with intellectual disabilities on land located within the ground of the Medical Facility at Vacaville for a period not to exceed 50 years.

SB 528 (Pan, 2015) would have increased the maximum term for DGS to enter into lease agreements for the acquisition of property from five to 11 years without requiring Legislative oversight. (Never Heard in the Senate Governmental Organization Committee)

AB 166 (Gaines, Chapter 211, Statutes of 2015) authorized DGS, with the consent of CDCR, to enter into a long-term lease for land on the grounds of the California State Prison at Folsom for a non-state funded peace officers memorial and museum.

AB 1503 (Gaines, 2014) would have required DGS, with the consent of CDCR, to lease vacant real property on the grounds of Folsom State Prison to the Old Guard Foundation, Inc., or a similar and related nonprofit entity, for the construction and operation of a peace officers memorial and museum facility. (Vetoed by the Governor)

SB 1217 (Dutton, Chapter 707, Statutes of 2012) reauthorized a statute that expressly allows the Director of DGS, with the consent of the Department of State Hospitals, to lease a building located at Patton State Hospital to a nonprofit corporation or local government, for a period not to exceed 20 years, for the purpose of providing services to elderly persons.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

None received

OPPOSITION:

None received