BILL NUMBER: AB 358	CHAPTERED  10/10/07

	CHAPTER  448
	FILED WITH SECRETARY OF STATE  OCTOBER 10, 2007
	APPROVED BY GOVERNOR  OCTOBER 10, 2007
	PASSED THE SENATE  SEPTEMBER 10, 2007
	PASSED THE ASSEMBLY  SEPTEMBER 11, 2007
	AMENDED IN SENATE  SEPTEMBER 7, 2007
	AMENDED IN SENATE  AUGUST 31, 2007

INTRODUCED BY   Assembly Member Blakeslee

                        FEBRUARY 14, 2007

   An act to add Section 11011.26 to the Government Code, relating to
state property.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 358, Blakeslee. State property: Santa Maria.
   Existing law authorizes the Director of General Services, to sell,
transfer, exchange, or otherwise dispose of specified state property
subject to certain conditions.
   This bill would authorize the director to exchange with the City
of Santa Maria, at fair market value and upon terms and conditions
the director deems to be in the best interests of the state, state
real property under the jurisdiction of the Department of Motor
Vehicles located in the City of Santa Maria, for a land-for-land
exchange, build-to-suit lease with a purchase option, new lease
purchase agreement, existing leased facility, or any other equitable
exchange, to be occupied by the Department of Motor Vehicles, subject
to the approval of the State Public Works Board and authorization
that may be provided in the Budget Bill. This bill would require
that, if the exchange with the city is completed, the city would
reimburse the Department of General Services for specified costs and
expenses. It would provide that if the exchange is not completed by
January 1, 2010, the director may enter into an exchange agreement
with parties other than the City of Santa Maria, at fair market value
and upon terms, and conditions the director deems to be in the best
interests of the state, for this purpose, still subject to the
approval of the State Public Works Board and funding under the Budget
Bill.
   The California Constitution provides that the proceeds from the
sale of surplus state property that was purchased with General Fund
revenues be used to pay the principal and interest on bonds issued
pursuant to the Economic Recovery Bond Act until the principal and
interest on those bonds is fully paid, after which these proceeds are
required to be deposited into the Special Fund for Economic
Uncertainties. Existing statutory law similarly requires that the net
proceeds received from any real property disposition be paid into
the Deficit Recovery Bond Retirement Sinking Fund Subaccount, a
continuously appropriated account, until the bonds issued pursuant to
the act are retired.
   This bill would declare that the exchange of state property
authorized by the bill does not constitute a sale of surplus state
property as set forth in these provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11011.26 is added to the Government Code, to
read:
   11011.26.  The Director of General Services, subject to the
approval of the State Public Works Board and specific authorization
by the Legislature that may be provided for in the Budget Bill, may
exchange with the City of Santa Maria, at fair market value, and upon
terms and conditions the director deems to be in the best interests
of the state, state real property under the jurisdiction of the
Department of Motor Vehicles located at 523 South McClellan Street,
in the City of Santa Maria, for a land-for-land exchange,
build-to-suit lease with a purchase option, new lease purchase
agreement, existing leased facility, or any other equitable exchange
to be occupied by the Department of Motor Vehicles. The city shall be
responsible for all administrative costs associated with the
exchange of properties. If the exchange is completed with the city,
then the city shall reimburse the Department of General Services for
any cost or expense associated with the department's review and
approval of the appraisal, conveyance, and acquisition documents. If
the exchange is not completed by January 1, 2010, the director may
enter into an exchange agreement with parties other than the City of
Santa Maria, at fair market value, and upon terms and conditions the
director deems to be in the best interests of the state, to meet the
objectives of this section, subject to the approval of the State
Public Works Board and funding under the Budget Bill.
  SEC. 2.  The Legislature finds and declares that the exchange of
state property authorized in Section 1 of this act does not
constitute a sale of surplus state property as set forth in Section 9
of Article III of the California Constitution or subdivision (g) of
Section 11011 of the Government Code.