Gov. Code, § 14670

(a) With the consent of the state agency concerned, the director may do any of the following:

(1) Let for a period not to exceed five years, any real or personal property that belongs to the state, the letting of which is not expressly prohibited by law, if the director deems the letting to be in the best interest of the state.

(2) Sublet any real or personal property leased by the state, the subletting of which is not expressly prohibited by law, if the director deems the subletting to be in the best interest of the state.

(3) Let for a period not to exceed five years, and at less than fair market rental, any real property of the state to any public agency for use as nonprofit, self-help community vegetable gardens and related supporting activities, provided:

(A) Parcels let for those purposes shall not exceed five acres.

(B) Two or more contiguous parcels shall not be let for those purposes.

(C) Parcels shall be let subject to applicable local zoning ordinances.

(b) The Legislature finds and declares that any leases let at less than fair market rental pursuant to paragraph (3) of subdivision (a) shall be of broad public benefit.

(c) Any money received in connection with paragraph (1) of subdivision (a) shall be deposited in the Property Acquisition Law Money Account and, except those funds necessary to maintain an operating reserve sufficient to continue redeveloping excess state properties as affordable housing, shall be available to the department upon appropriation by the Legislature.

(d) All money received pursuant to paragraph (2) of subdivision (a) shall be accounted for to the Controller at the close of each month and on order of the Controller be paid into the State Treasury and credited to the appropriation from which the cost of the lease was paid.

(e) Notwithstanding subdivisions (a) to (d), inclusive, to promote employee wellness initiatives at facilities operated by the Department of Corrections and Rehabilitation, the director may determine that allowing a lease to be made at less than fair market value is in the state’s best interest. The director shall base this determination upon the Department of Corrections and Rehabilitation’s written request that justifies the letting of a lease at below fair market value. Notwithstanding subdivision (a), the leases may be entered into for a period not to exceed 10 years. The criteria and the process for exempting a lease from fair market value pursuant to this subdivision shall be published in the State Administrative Manual.

(f) The Department of General Services shall report annually to the Joint Legislative Budget Committee on all new leases let at less than fair market rental value pursuant to subdivision (e). The report shall include the lease terms; the reasons, where applicable, for which the Department of Corrections and Rehabilitation requested a rental rate at less than fair market value; the justification for letting at a lesser rate; and the approach used to determine the final rental rate.