BILL NUMBER: SB 951 CHAPTERED 10/09/01 CHAPTER 610 FILED WITH SECRETARY OF STATE OCTOBER 9, 2001 APPROVED BY GOVERNOR OCTOBER 7, 2001 PASSED THE SENATE SEPTEMBER 13, 2001 PASSED THE ASSEMBLY SEPTEMBER 5, 2001 AMENDED IN ASSEMBLY SEPTEMBER 4, 2001 AMENDED IN ASSEMBLY AUGUST 21, 2001 AMENDED IN ASSEMBLY JULY 3, 2001 INTRODUCED BY Committee on Governmental Organization (Senators Vincent (Chair), Chesbro, Dunn, Johannessen, Johnson, Karnette, Machado, Morrow, Perata, and Soto) FEBRUARY 23, 2001 An act to amend Section 11011.21 of, to add Section 14672.99 to, and to add and repeal Section 14672.86 of, the Government Code, to amend Sections 12126, 12128, and 12129 of the Public Contract Code, to amend Section 4 of Chapter 870 of, and to repeal Section 6 of Chapter 870 of, the Statutes of 1999, to amend Section 12 of Chapter 784 of the Statutes of 1997, and to repeal Section 2 of Chapter 417 of the Statutes of 1996, relating to state property. LEGISLATIVE COUNSEL'S DIGEST SB 951, Committee on Governmental Organization. State property. (1) Existing law requires the Department of General Services to perform various functions and duties with respect to state property. This bill would authorize the Director of General Services to sell, exchange, lease, or transfer specified parcels of state property. The bill would exempt the sale, exchange, lease, or transfer of the parcels from specified provisions of the California Environmental Quality Act. This bill would require that the net proceeds be deposited in the General Fund, as provided, and would require the reservation of mineral rights, as specified. This bill would also rescind the authority of the director to sell other specified parcels of state property that are no longer considered surplus by the concerned state agencies. The bill would also authorize until July 1, 2004, the director to transfer a specified parcel of surplus state property to the City of Richmond. (2) Existing law authorizes the Director of General Services, with the consent of the state agency concerned, to let for a period not to exceed 5 years any real or personal property that belongs to the state, if the director deems it to be in the best interest of the state. This bill would, notwithstanding these provisions, require the director, with the consent of the Department of the Youth Authority, to lease a acre portion of the Ione Youth Authority Facility as designated by the Department of the Youth Authority, for a term not to exceed 30 years and at a specified rate, to the County of Amador on behalf of the Mother Lode Juvenile Facility Authority for use as a regional juvenile detention facility, subject to specified conditions. (3) Existing law provides for the Alternative Protest Pilot Project in connection with state agency acquisition of goods and services, including the acquisition of information technology goods and services, and requires the Department of General Services to administer the project until December 31, 1999, or until the pilot project has been applied to at least 25 contracts, including at least 10 information technology contracts, whichever occurs later. Existing law also requires the department to make a report to the Legislature by July 31, 2000. This bill would extend these provisions to December 31, 2005, and would reduce the pilot project's application from 10 information technology contracts to at least 5 major information technology acquisitions. The bill would also require that the department submit its report to the Legislature within 90 days after the termination of the pilot project. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 11011.21 of the Government Code is amended to read: 11011.21. (a) The Legislature finds and declares that the Department of General Services has, pursuant to former Section 11011.21, as added by Section 8 of Chapter 150 of the Statutes of 1994, and amended by Section 15 of Chapter 422 of the Statutes of 1994, developed an inventory, known as the Surplus Property Inventory, of state-owned properties that are either surplus to the needs of the state in their entirety or are being used for a state program and some portions of the property are unused or underutilized. (b) State agencies, when purchasing real property, shall review the Surplus Property Inventory and purchase, lease, or trade property on that list, if possible, prior to purchasing property not on the Surplus Property Inventory. (c) The Department of General Services may sell, lease, exchange, or transfer for current market value, or upon terms and conditions as the Director of General Services determines are in the best interest of the state, all or part of properties as follows: Parcel 1. Approximately 292 acres with improvements thereon, known as the Agnews Developmental Center-West Campus, bounded by Lick Mill Blvd., Montague Expressway, Lafayette Street and Hope Drive, in Santa Clara, Santa Clara County. Parcel 2. Approximately 56 acres known as a portion of the Agnews Developmental Center-East Campus, located between the Agnews Developmental Center and Coyote Creek, in San Jose, Santa Clara County. Parcel 3. Approximately 102 acres with improvements thereon, known as the Stockton Developmental Center, located at 510 E. Magnolia Street, in Stockton, San Joaquin County. Parcel 4. Approximately 12.72 acres with improvements thereon, formerly used as a Department of Forestry and Fire Protection facility, known as Bolinger Canyon Pest Management Facility, located off Highway 680 at 18112-18114 Bolinger Canyon Road, in San Ramon, Contra Costa County. Parcel 5. Approximately one acre with improvements thereon, known as the California Department of Forestry and Fire Protection, Cottonwood Pass Forest Fire Station, located three miles west of Highway 33 on the south side of Highway 41, in Kings County. Parcel 6. Approximately 33.56 acres with improvements thereon, known as the California Highway Patrol Motor Transport Facility and Shop, located at 2800 Meadowview Road, in Sacramento, Sacramento County. Parcel 7. Approximately 1.03 acres of land, not including improvements thereon, located at 1614 O Street, in Sacramento, Sacramento County, and leased by the Department of General Services to the Capital Area Development Authority for development of the 17th Street Commons condominiums. Parcel 8. Approximately 2 acres of land, not including improvements thereon, located on a portion of block 273 bound by 10th, 11th, P, and Q Streets, in Sacramento, Sacramento County, and leased by the Department of General Services to the Capital Area Development Authority for development of the Somerset Parkside condominiums. Parcel 9. Approximately 1.76 acres of land, not including improvements thereon, located on the south 1/2 of block bound by 15th, 16th, O, and P Streets and the south 1/4 of block bound by 14th, 15th, O, and P Streets, in Sacramento, Sacramento County, and leased by the Department of General Services to the Capital Area Development Authority for development of the Stanford Park condominiums. Parcel 10. Approximately 1.18 acres of land, not including improvements thereon, located on the north 1/2 of block bound by 9th, 10th, Q, and R Streets, in Sacramento, Sacramento County, and leased by the Department of General Services to the Capital Area Development Authority for development of the Saratoga Townhomes. Parcel 11. Approximately 3.66 acres including improvements thereon, known as the Department of General Services, Junipero Serra State Office Building, located at 107 S. Broadway, in Los Angeles, Los Angeles County. Parcel 12. Approximately 32 acres including improvements thereon, being a portion of the State Department of Developmental Services Fairview Developmental Center, located at 2501 Harbor Blvd., in Costa Mesa, Orange County. Parcel 13. Approximately 3.6 acres, with improvements thereon. Entire structure used as the Delano Armory by the Military Department, located at 705 South Lexington Street, in Delano, Kern County. Parcel 14. Approximately 5 acres of vacant land, being a portion of the Military Department's San Diego Armory, located at 7401 Mesa College Drive, in San Diego, San Diego County. Parcel 16. Approximately 1,720 acres of agricultural land, being a portion of the Department of Corrections' Imperial South Centinella Prison, located at 2302 Brown Road, in Imperial, Imperial County, which shall only be available for lease. Parcel 17. Approximately 800 acres of agricultural land, being a portion of the Department of Corrections' Imperial North Calipatria Prison, located at 7018 Blair Road, in Calipatria, Imperial County, which shall only be available for lease. (d) The Director of General Services, after further study and with the consent of the agency in control and possession of the property, may sell, lease, exchange, or transfer for current market value, upon terms and conditions as the director determines are in the best interest of the state, portions of properties as follows: Parcel 1. Excess acreage of the Department of Forestry and Fire Protection, known as the Alder Conservation Camp, located at 1400 Alder Camp Road, in Klamath, Del Norte County, near Highway 101 and Highway 169. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Department of Forestry and Fire Protection. Parcel 2. Excess acreage of the Department of Forestry and Fire Protection, known as the Deadwood Conservation Camp, located at 17140 McAdams Creek Road, in Fort Jones, Siskiyou County, north of Fort Jones off Highway 3. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Department of Forestry and Fire Protection. Parcel 3. Excess acreage of the Department of Forestry and Fire Protection, known as the Eel River Conservation Camp, located in Redway, Humboldt County, north of Garberville off Highway 101. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Department of Forestry and Fire Protection. Parcel 4. Excess acreage of the Department of Forestry and Fire Protection, known as the Fawn Lodge Forest Fire Station, located on Fawn Lodge Road off Highway 299, in Weaverville, Trinity County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Department of Forestry and Fire Protection. Parcel 5. Excess acreage of the Department of Forestry and Fire Protection, known as the Miramonte Conservation Camp, located at 49039 Orchard Drive, in Miramonte, Fresno County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Department of Forestry and Fire Protection. Parcel 6. Excess acreage with improvements thereon, of the Department of Forestry and Fire Protection's Mt. Zion Lookout, located at the end of Mount Zion Road, in Pine Grove, Amador County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Department of Forestry and Fire Protection. Parcel 7. Excess acreage of the Department of Forestry and Fire Protection, known as the Shingletown Forest Fire Station, located off Highway 44, in Shingletown, Shasta County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Department of Forestry and Fire Protection. Parcel 8. Excess acreage of Department of Forestry and Fire Protection, known as the Tularcitos Forest Fire Station, located on Cachagua Road off Valley Road, in Carmel, Monterey County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Department of Forestry and Fire Protection. Parcel 9. Excess acreage of Department of Forestry and Fire Protection, known as the Wolf Creek Forest Fire Station, located at 10106 Combie Road, in Higgins Corners, Nevada County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Department of Forestry and Fire Protection. Parcel 11. Excess acreage of the Military Department's Camp San Luis Obispo, located on Highway 101 north of San Luis Obispo, in San Luis Obispo County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Military Department. Parcel 12. Vacant land of the Military Department's Camp Escondido Armory located at 304 East Park Avenue, in Escondido, San Diego County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Military Department. Parcel 13. Excess acreage of the Military Department's Hollister Armory, located at 2302 San Felipe Road, in Hollister, San Benito County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Military Department. Parcel 14. Excess acreage of the Military Department's Merced Armory, located at 1240 West 8th Street, in Merced, Merced County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Military Department. Parcel 15. Excess acreage of the Military Department's Salinas Armory, located at Howard and Lincoln Streets, in Salinas, Monterey County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Military Department. Parcel 16. Excess acreage of the Military Department's Visalia Armory, located at 1100 North Akers Road, in Visalia, Tulare County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Military Department. Parcel 17. Excess acreage of the Military Department's Willows Armory, located at 950 West Laurel Street, in Willows, Glenn County. Specific parcels available for disposition to be determined through a study by the Department of General Services and the Military Department. (e) The Department of General Services shall be reimbursed for any cost or expense incurred in the disposition of any parcels. (f) Notices of every public auction or bid opening shall be posted on the property to be sold pursuant to this section, and shall be published in a newspaper of general circulation published in the county in which the real property to be sold is situated. (g) Any sale, exchange, lease, or transfer of a parcel described in this section is exempt from Chapter 3 (commencing with Section 21100) to Chapter 6 (commencing with Section 21165), inclusive, of Division 13 of the Public Resources Code. (h) As to any property sold pursuant to this section consisting of 15 acres or less, the Director of General Services shall except and reserve to the state all mineral deposits possessed by the state, as defined in Section 6407 of the Public Resources Code, below a depth of 500 feet, without surface rights of entry. As to property sold pursuant to this section consisting of more than 15 acres, the director shall except and reserve to the state all mineral deposits, as defined in Section 6407 of the Public Resources Code, together with the right to prospect for, mine, and remove the deposits. The rights to prospect for, mine, and remove the deposits shall be limited to those areas of the property conveyed that the director, after consultation with the State Lands Commission, determines to be reasonably necessary for the removal of the deposits. (i) The net proceeds of any moneys received from the disposition of any parcels described in this section shall be deposited in the General Fund. SEC. 2. Section 14672.86 is added to the Government Code, to read: 14672.86. (a) The Director of General Services may transfer and convey, without charge or consideration, to the City of Richmond, all rights, title, and interest, including any equitable interest, held by the state in the real property situated at 343 22nd Street, Richmond, California, if the city has received a transfer of property interests from the United States for any interest held by the Unites States Department of Labor in that property. The Legislature hereby finds that it has deemed the subject property, formerly used as an Employment Development Department office, as surplus. As a condition of the transfer pursuant to this section, the City of Richmond shall agree to reimburse the Department of General Services for its costs related to the transfer, including, but not limited to, any survey costs, title transfer fees, and department staff time. (b) This section shall become inoperative on July 1, 2004, and, as of January 1, 2005, is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2005, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 3. Section 14672.99 is added to the Government Code, to read: 14672.99. (a) Notwithstanding Section 14670, the Director of General Services, with the consent of the Department of the Youth Authority, shall lease a five acre portion of the Ione Youth Facility as designated by the Department of the Youth Authority, for a term not to exceed 30 years and at the rate of one dollar ($1) per year, to the County of Amador on behalf of the Mother Lode Juvenile Facility Authority for use as a regional juvenile detention facility. (b) The lease shall provide that the property shall be leased "as is" and that the state shall have no liability for repairs, rehabilitation, or other improvements. It shall provide that the lessee county or the authority shall complete the detention facility not later than three years after the effective date of the lease, and that the facility shall be operated by the authority pursuant to the terms of the lease. (c) The lease described in this section shall be exempt from the requirements of Division 13 (commencing with Section 21000) of the Public Resources Code. (d) The Department of General Services shall be reimbursed for its costs related to the lease, including, but not limited to, any survey costs, title transfer fees, and department staff time. (e) For purposes of this section, "Mother Lode Juvenile Facility Authority" means the joint powers authority comprising the Counties of Amador, Calaveras, and Tuolumne. (f) The Legislature finds and declares that the lease of a portion of the Ione Youth Facility to the County of Amador on behalf of the Mother Lode Juvenile Facility Authority for use as a juvenile detention facility pursuant to this section, is for a statewide public purpose. SEC. 4. Section 12126 of the Public Contract Code is amended to read: 12126. (a) Notwithstanding any other provision of law, any department or agency may use the solicitation and alternative protest procedures outlined in this chapter for solicitations authorized under Chapter 2 (commencing with Section 10290) or Chapter 3 (commencing with Section 12100). The Department of General Services shall develop procedures and guidelines for the implementation of this pilot project. Establishment of procedures for major information technology acquisitions pursuant to this chapter shall be coordinated with the Department of Information Technology. (b) To be eligible for this pilot project, the contracting department shall agree to participate in the pilot project and the Department of General Services shall indicate that the proposed solicitation shall be conducted as part of the pilot project prior to release of the solicitation. Submission of a bid constitutes consent for participation in the alternative protest pilot project. Any protests filed in relation to the proposed contract award shall be conducted under the procedures set forth by the Department of General Services for the alternative protest pilot project. (c) Notwithstanding any other provision of law to the contrary, any bid protest conducted under this chapter shall include one or more of the following alternative procedures: (1) The protest process shall not prevent the commencement of work in accordance with the terms of any other contract awarded pursuant to this chapter. A contract may be entered into pending a final decision on the protest. (2) The Department of General Services shall review the protest within seven days of the filing date to determine if the protest is frivolous. If determined to be frivolous, the protest shall not proceed under this chapter until the bidder posts a protest bond in an amount not less than 10 percent of the estimated contract value, as determined by the Department of General Services in the solicitation. (3) The Director of General Services shall issue a decision within a period not to exceed 45 days from the date the protest is filed. (4) Arbitration, as defined and established by the Department of General Services, shall be the resolution tool. (d) Authority to protest under this chapter shall be limited to participating bidders. (1) Grounds for major information technology acquisition protests shall be limited to violations of the solicitation procedures and that the protestant should have been selected. (2) Any other acquisition protest filed pursuant to this chapter shall be based on the ground that the bid or proposal should have been selected in accordance with selection criteria in the solicitation document. SEC. 5. Section 12128 of the Public Contract Code is amended to read: 12128. The pilot project shall continue until it has been applied to at least 25 contracts, with varying dollar amounts, at least five of which are major information technology acquisitions, or until December 31, 2005, whichever occurs later. The Department of General Services shall apply this chapter to the following categories: (a) Information technology and ancillary services. (b) Material, supplies, equipment, and ancillary services. SEC. 6. Section 12129 of the Public Contract Code is amended to read: 12129. The Department of General Services shall electronically submit a report to the Legislature regarding the pilot project within 90 days after the termination of the project. The report shall include the following: (a) The percentage of bids with values under five hundred thousand dollars ($500,000), under one million dollars ($1,000,000), and over one million dollars ($1,000,000) or more not in the pilot project that were protested with corresponding data for solicitations issued pursuant to the pilot project. (b) The number of protests determined to be frivolous by the Department of General Services, subject to this chapter, with corresponding data for solicitations issued pursuant to existing procedures. (c) The percentage of contracts awarded under the pilot project that were subsequently challenged in a court of law with corresponding data for solicitations issued pursuant to existing procedures. (d) All costs of a protest incurred by state agencies subject to subdivision (b) of Section 12126 from the original date filed, until final resolution. This shall include all costs associated with a successful protest and commencement of work under subdivision (b) of Section 12126 from the original date filed, until final resolution, with corresponding data for solicitations issued pursuant to existing procedures. (e) The length of time to resolve protests pursuant to this chapter and the corresponding data for solicitations issued pursuant to existing procedures. SEC. 7. (a) The Director of General Services, with the approval of the State Public Works Board, may sell, exchange, or lease, for current market value or for any lesser consideration authorized by law and upon those terms and conditions and subject to those reservations and exceptions as the Director of General Services determines are in the best interests of the state, all or any part of the following real property: Parcel 1. Single family residence located at 6511 Raymond Street, Oakland, Alameda County. (b) The heirs of the previous owner of Parcel 1 of subdivision (a) shall have the first right of refusal to purchase this property at fair market value. SEC. 8. Notwithstanding any other provision of law, including, but not limited to, Article 1 (commencing with Section 11000) of Chapter 1 of Part 1 of Division 3 of Title 2 of, and Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of, the Government Code, the Director of General Services, in consultation with the California Department of Forestry and Fire Protection, may convey, at no cost, except as provided in this section, to the Stirling City Historical Society for use with a public benefit, a portion of Stirling City Fire Fighting Station consisting of historical buildings no longer used by the Department of Forestry and Fire Protection on the terms and conditions and subject to the reservations and exceptions that may be in the best interest of the state. The Department of General Services shall be reimbursed by the Stirling City Historical Society only for its costs related to the transfer, including, but not limited to, any survey costs, title transfer fees, and department staff time. SEC. 9. Notwithstanding any other provision of law, including, but not limited to, Article 1 (commencing with Section 11000) of Chapter 1 of Part 1 of Division 3 of Title 2 of, and Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of, the Government Code, the Director of General Services, in consultation with the California Highway Patrol, may convey, at no cost, except as provided in this section, to the City of Williams for use with a public benefit, a 4,000 square foot office building, located at 806 North Street, Williams, Colusa County, no longer used by the California Highway Patrol on the terms and conditions and subject to the reservations and exceptions that may be in the best interest of the state. The Department of General Services shall be reimbursed by the City of Williams only for its costs related to the transfer, including, but not limited to, any survey costs, title transfer fees, and department staff time. SEC. 10. (a) Notwithstanding any other provision of law, including, but not limited to, Article 1 (commencing with Section 11000) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code, the Director of General Services, with the approval of the State Public Works Board, may exchange four irregularly shaped parcels of vacant land totaling approximately .61 acres near the intersection of Gough Street and Fulton Street in the City and County of San Francisco for one parcel of vacant land totaling approximately .32 acres owned by the City and County of San Francisco located on Golden Gate Avenue between Franklin Street and Gough Street. (b) If the fair market value of the four state owned parcels totaling approximately .61 acres exceeds the market value of the approximately .32 acre parcel owned by the City and County of San Francisco, the value differential shall be deemed by both the city and county and the state as a subvention by the state augmenting the supply of affordable housing and facilitating the development of new state facilities in San Francisco. SEC. 11. Section 4 of Chapter 870 of the Statutes of 1999 is amended to read: Sec. 4. The Director of General Services, with the approval of the State Public Works Board, may sell, exchange, lease, or transfer for current market value only, all or any part of the following property: Parcel 2. Approximately 6.64 acres, formerly the site of the Cohasset Forest Fire Station that was partially destroyed by fire on February 1, 1995, located at 405 Vilas Road, Cohasset, Butte County. Parcel 3. Approximately 0.66 acre, with a structure formerly the site of the Lyons Valley Forest Fire Station, located at 17461 Lyons Valley Road, Jamul, San Diego County. SEC. 12. Section 6 of Chapter 870 of the Statutes of 1999 is repealed. SEC. 13. Section 12 of Chapter 784 of the Statutes of 1997 is amended to read: Sec. 12. The Director of Parks and Recreation, with the approval of the State Public Works Board and the Director of General Services, may sell or exchange for current market value, upon those terms and conditions and subject to those reservations and exceptions that may be in the best interest of the state, all or part of the following property: Parcel 1. Approximately 0.32 acre of land at Carpinteria State Beach within the community of Mussell Shoals in Ventura County. Parcel 2. Approximately 1,600 square feet of land located at the Skylandia Park portion of the Tahoe State Recreation Area near Tahoe City, Placer County. Parcel 4. Approximately 1,900 square feet of land located at Morro Strand State Beach near Cayucos, in San Luis Obispo County. Parcel 5. Approximately 1 acre of land at Sinkyone Wilderness State Park, near Shelter Cove, Mendocino County. Parcel 6. Approximately 2.5 acres of open-space easement at the Bishop Peak portion of Morro Bay State Park, near the City of San Luis Obispo, San Luis Obispo County. SEC. 14. Section 2 of Chapter 417 of the Statutes of 1996 is repealed. SEC. 15. The authorization to sell, exchange, or lease the following properties is rescinded by this act, as the concerned state agencies have reported that the following properties are no longer considered surplus: (a) Parcel 15 of subdivision (c) of Section 6 of Chapter 193 of the Statutes of 1996. (b) Parcel 10 of subdivision (d) of Section 6 of Chapter 193 of the Statutes of 1996. (c) Parcel 1 of Section 2 of Chapter 417 of the Statutes of 1996. (d) Parcel 3 of Section 12 of Chapter 784 of the Statutes of 1997. (e) Parcel 1 of Section 4 of Chapter 870 of the Statutes of 1999. (f) Section 6 of Chapter 870 of the Statutes of 1999. SEC. 16. (a) Notices of every public auction or bid opening shall be posted on the property to be sold under this act and shall be published in a newspaper of general circulation published in the county in which the real property to be sold is situated. (b) Any sale, exchange, lease, or transfer of the parcels described in this act is exempt from Chapter 3 (commencing with Section 21100) to Chapter 6 (commencing with Section 21165), inclusive, of Division 13 of the Public Resources Code. SEC. 17. (a) The Department of General Services shall be reimbursed for any cost or expense incurred in the disposition of any parcels. (b) The net proceeds of any moneys received from the disposition of any parcels described in this act shall be deposited in the General Fund and be available for appropriation in accordance with Section 15863 of the Government Code. SEC. 18. As to any property sold pursuant to this act consisting of 15 acres or less, the Director of General Services shall except and reserve to the state all mineral deposits, as defined in Section 6407 of the Public Resources Code, below a depth of 500 feet, without surface rights of entry. As to property sold pursuant to this act consisting of more than 15 acres, the Director of General Services shall except and reserve to the state all mineral deposits, as defined in Section 6407 of the Public Resources Code, together with the right to prospect for, mine, and remove the deposits. The rights to prospect for, mine, and remove the deposits shall be limited to those areas of the property conveyed that the director, after consultation with the State Lands Commission, determines to be reasonably necessary for the removal of the deposits.