California Legislative Office Facilities

Article 5.5 deals with legislative office facilities. Section 9115 provides that, in order to adequately provide for the proper housing and administrative requirements of the Legislature, it is necessary for the Legislature to acquire and finance additional legislative office facilities in a location adjacent to the State Capitol Building so as to provide for the efficient and effective operations of state government.

This section also provides that it is the Legislature’s desire to provide a procedure for acquiring, and to authorize the financing of, these legislative office facilities by the enactment of this article. In addition, it is the intent of the Legislature to conduct a thorough review of the current and long-term requirements of the Legislature for office facilities and to conduct a study to determine the most economical and cost-effective method of funding the acquisition of those office facilities.

Section 9117 defines the following terms: “bonds,” “lease financing,” “lessee,” “lessor,” “project,” and “Treasurer.”

Section 9118 authorizes the lessee to lease the project from the lessor, and the lessor may lease the project to the lessee. The lessor may acquire all real property for the project with the proceeds of the bonds. In connection with the financing authorized by this article, the lessor and the lessee may seek and obtain interim financing from the Pooled Money Investment Account.

Section 9119 allows the State Public Works Board to issue bonds to finance the project authorized by this article. And, the Treasurer may, in his or her discretion, serve as trustee for the bonds. The Treasurer is required to sell the bonds.

Section 9120 provides the terms of the lease financing are those specified in the lease, trust agreement, indenture, and any related documents executed and delivered between the lessor, the lessee, and the Treasurer. The total amount of lease financing under this article cannot exceed the sum of the cost of the project.

Section 9121 deems this article to be separate and complete authority for all of the actions authorized by this article. The project authorized by this article is subject to specified provisions of the Public Contract Code and Public Resources Code. But it is not subject to any other state or local government requirement, limitation, or control.

Section 9122 provides that the State of California does pledge to the holders of any bonds issued under this article, and with those parties who may enter into contracts with the lessor, the lessee, and the Treasurer pursuant to this article, that the state will not limit or alter the rights vested.

Section 9123 states that the title to the buildings and property bounded by 10th, 11th, N, and O Streets in the City of Sacramento are vested in the Legislature on the effective date of this act. The Legislature may transfer title for the purposes of any financing of the project, however, at the conclusion of any financing, title shall revest in the Legislature. And, the Legislature has jurisdiction over the project.

In addition, all space in the legislative office facilities and all annexes and additions are allocated from time to time by the Senate Committee on Rules and the Assembly Committee on Rules in accordance with their determination of the needs of the Legislature and the two houses.

Section 9124 provides that the determination of the Senate Committee on Rules and the Assembly Committee on Rules as to the needs of the Legislature are subject to change only by action of those committees or by concurrent resolution. The Department of General Services provides maintenance and operation services in connection with the legislative office facilities as requested by the Legislature.

Article 5.6 deals with the State Office Building Act. Section 9125 provides that, in order to adequately provide for the housing and administrative requirements of the Legislature and the executive branch during the construction of a state capitol building annex or the restoration, rehabilitation, renovation, or reconstruction of the existing State Capitol Building Annex, the Department of General Services may pursue the design and construction of a state office building located on O Street, between 10th Street and 11th Street, in the City of Sacramento.

Section 9125.5 authorizes the State Public Works Board to issue lease-revenue bonds, notes, or bond anticipation notes in an amount not exceeding $422,587,000 in order to finance the acquisition, design, and construction of the projects authorized. And, the State Public Works Board, together with the Department of General Services, may obtain interim financing for the costs of the projects authorized from any appropriate source.

Section 9125.6 expresses legislative and executive branch intent to expedite and not unreasonably delay in taking actions needed to advance the expeditious development and construction of the projects authorized and to collaborate in good faith.