Report 2010-125 Recommendation 23 Responses

Report 2010-125: State Lands Commission: Because It Has Not Managed Public Lands Effectively, the State Has Lost Millions in Revenue for the General Fund (Release Date: August 2011)

Recommendation #23 To: Lands Commission, State

To ensure that as few leases as possible go into holdover, the commission should continue to implement its newly established holdover reduction procedures and periodically evaluate whether its new procedures are having their intended effect of reducing the number of leases in holdover.

Annual Follow-Up Agency Response From September 2015

Response: Staff has continued to follow the holdover reduction procedures and it has been extremely successful. Of the more than 1,400 rent-generating leases, there are currently only 18 such leases in holdover (a 99% compliance rate). Over the past three years since the holdover procedures have been in place, the Commission has held 18 meetings, bringing more than 600 compliance/enforcement related items, resulting in an additional $4 million in revenues for the state. The majority of these are not one-time revenues, but increased annual rent. Those leases still in holdover have been brought current on rental valuation and are being held up by other factors often beyond the Commissions control such as completion of environmental documents or issuance of permits or approvals from other regulatory agencies.

Commission staff believes this recommendation is fully implemented.

  • Completion Date: June 2015

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From September 2014

Commission staff will continue to examine processes and leverage the reporting and workflow capabilities of the SLIC database to enhance holdover reduction procedures to ensure that notifications of lease expirations are timely.

  • Estimated Completion Date: 12/31/2014

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

All Recommendations in 2010-125

Agency responses received after June 2013 are posted verbatim.