Today's Law As Amended

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AB-246 State highways: property leases.(2019-2020)



SECTION 1.

 Section 104.23 is added to the Streets and Highways Code, to read:

104.23.
 (a) Any airspace under a freeway, or real property acquired for highway purposes, in a disadvantaged community as defined in Section 79505.5 of the Water Code, that is not excess property, may be offered for lease on a right of first refusal by the department to the city or county in which the disadvantaged community is located for purposes of an emergency shelter or feeding program, or for park, recreational, or open-space purposes.
(b) (1) The lease amount for emergency shelter or feeding programs shall be for one dollar ($1) per month.
(2) For up to 10 parcels in any city, or in the unincorporated area of any county, the lease amount for park, recreational, or open-space purposes shall be 30 percent of the fair market lease value of the applicable parcel.
(3) The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the department’s cost of administering the lease.
(c) In the case of a lease for park, recreational, or open-space purposes, in order to offset any potential loss of revenue, the department may include parcels leased pursuant to this section in a mitigation bank to be used to advance future development projects or highway projects within the disadvantaged community.
(d) The city or county in which the disadvantaged community is located, in consultation with the department, shall follow all applicable health, environmental, safety, design, and engineering standards.
(e) Any lease of real property pursuant to this section shall require the lessee to fund and construct all associated infrastructure and to accept full responsibility for liability related to those uses. The lease shall require the lessee to be responsible for all maintenance costs associated with those uses, except as otherwise provided in the lease. The lease shall authorize the lessee to subsidize its associated maintenance costs through generation of revenue under a limited revenue generation model, such as from limited parking facilities located on the leased property, if any revenues generated that exceed the associated maintenance costs are shared with the state, at a rate not less than 50 percent of those excess revenues, with that amount to be deposited in the State Highway Account.
(f) The Legislature finds and declares that the lease of real property pursuant to this section serves a public purpose.