SB 387: State property: sale or lease: broadband development.

Existing law authorizes the Department of General Services to lease real property under the jurisdiction of a state agency, department, or district agricultural association if the Director of General Services determines that the real property is of no immediate need to the state but may have a potential future use. Existing law prohibits the director from leasing specified real property, including lands under the jurisdiction of the State Coastal Conservancy or another state conservancy, the Department of Transportation, the California State University system, the Department of Parks and Recreation, or the Department of Fish and Wildlife. Existing law requires the lease to be set at the amount of the leases fair market value, as determined by the Director of General Services. Existing law authorizes the director to determine the length of term or a use of the lease, and specify any other terms and conditions that are determined to be in the best interest of the state.

This bill, as an exception to the prohibition on leasing certain properties described above and the requirement to set the lease at fair market value, would authorize the Department of General Services to enter into a lease for real property under the jurisdiction of a state agency, department, or district agricultural association, with the consent of that state agency, department, or district agricultural association at an amount less than fair market value in support of broadband infrastructure deployment to connect unserved or underserved locations in the state, if specified conditions are met, including that the lease terms enable the state to recover all direct costs for the term of the lease.

Existing law requires the Department of General Services, for every new lease entered into under these provisions that exceeds 5 years, to annually transmit a report containing specified information to each house of the Legislature.

This bill would require the report to also list every new lease that is below fair market value. The bill would require the report to include, for any lease to support broadband infrastructure deployment, a description of the related broadband infrastructure project, as specified.