BILL NUMBER: AB 1790	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Solorio and Tran
   (Coauthors: Assembly Members De La Torre, Harkey, Jones, Nava, and
Silva)
   (Coauthor: Senator Correa)

                        FEBRUARY 10, 2010

   An act to repeal Sections 3884.1 and 3884.2 of the Food and
Agricultural Code, relating to the Orange County Fair, and declaring
the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1790, as introduced, Solorio. Orange County Fair: sale of state
property.
   Existing law divides the state into agricultural districts within
the boundaries of which agricultural associations may be formed.
Existing law creates District 32a from real property commonly known
as the Orange County Fair and authorizes the Department of General
Services to sell all or any portion of the real property that
composes District 32a.
   This bill would repeal the provision creating District 32a out of
the Orange County Fair property and would repeal the provision
authorizing its sale by the department. This bill would also repeal
the creation of the District 32a Disposition Fund in the State
Treasury.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 3884.1 of the Food and Agricultural Code is
repealed. 
   3884.1.  There is hereby created District 32a, which consists of
all of that real property that is a portion of District 32 that is
commonly known as the Orange County Fair located in the City of Costa
Mesa. Notwithstanding any other law, any officer of District 32a may
also be an officer of District 32 and shall be a resident of
District 32. All otherwise applicable ethical duties, including those
in Section 1090 of the Government Code, subdivision (a) of Section
8920 of the Government Code, and the Political Reform Act of 1974
(Title 9 (commencing with Section 81000) of the Government Code),
shall apply to the officers of both District 32 and District 32a, and
shall apply in regard to the transactions contemplated by Section
3884.2. 
  SEC. 2.  Section 3884.2 of the Food and Agricultural Code is
repealed. 
   3884.2.  (a) The District 32a Disposition Fund is hereby created
in the State Treasury.
   (b) The Department of General Services may sell all or any portion
of the real property that composes District 32a. District 32a shall
not enter into any contract, lease, or other agreement affecting the
use or operation of the real property for a period that exceeds three
months, and all of these contracts, leases, or other agreements
shall contain a provision that they may be canceled upon a 30-day
notice from the Department of General Services. The Department of
General Services shall be reimbursed for any reasonable cost or
expense incurred for the transactions described in this section.
Additionally, to the extent bonds issued by the State Public Works
Board or other entity involve the property to be sold pursuant to
this section, all issuer and trustee related costs associated with
the review of any proposed sale, together with the costs related to
the defeasance or retirement of any bonds, which may include the cost
of nationally recognized bond counsel, shall be paid from the
proceeds of any sale or lease authorized by this section. The net
proceeds from the sale shall be deposited into the District 32a
Disposition Fund.
   (c) The sale of the real property authorized by this section shall
be pursuant to a public bidding process designed to obtain the
highest, most certain return for the state from a responsible bidder,
and any transaction based on such a bidding process shall be deemed
to be the fair market value for the property. A notice of this
bidding process shall be posted by the Department of General Services
on its Internet Web site for at least 30 days prior to the sale of
the real property. The provisions of Section 11011.1 of the
Government Code are not applicable to the sale of real property
authorized under this section.
   (d) Thirty days prior to executing a transaction for a sale of
real property authorized by this section, the Director of General
Services shall report to the chairs of the fiscal committees of the
Legislature all of the following:
   (1) The financial terms of the transaction.
   (2) A comparison of fair market value for the real property and
the terms listed in paragraph (1).
   (3) Any basis for agreeing to terms and conditions other than fair
market value.
   (e) As to the real property sold pursuant to this section, 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. If, however, the Director of General Services
determines that there is little or no potential for mineral deposits,
the reservation may be without surface right of entry above a depth
of 500 feet, or the rights to prospect for, mine, and remove the
deposits shall be limited to those areas of the real property
conveyed that the director determines to be reasonably necessary for
the removal of the deposits.
   (f) The Department of General Services shall report to the
Legislature on or before June 30 of each year on the status of the
sale of real property authorized by this section.
   (g) Upon the sale of all property that composes District 32a,
District 32a shall be abolished and all funds in the District 32a
Disposition Fund shall be transferred to the General Fund.
   (h) (1) The disposition of state real property or buildings
specified in subdivision (b) that are made on an "as is" basis shall
be exempt from Chapter 3 (commencing with Section 21100) to Chapter 6
(commencing with Section 21165), inclusive, of Division 13 of the
Public Resources Code. Upon title to the parcel vesting in the
purchaser or transferee of the property, the purchaser or transferee
shall be subject to any local governmental land use entitlement
approval requirements and to Chapter 3 (commencing with Section
21100) to Chapter 6 (commencing with Section 21165), inclusive, of
Division 13 of the Public Resources Code.
   (2) If the disposition of state real property or buildings
specified in subdivision (b), is not made on an "as is" basis and
close of escrow is contingent on the satisfaction of a local
governmental land use entitlement approval requirement or compliance
by the local government with Chapter 3 (commencing with Section
21100) to Chapter 6 (commencing with Section 21165), inclusive, of
Division 13 of the Public Resources Code, the execution of the
purchase and sale agreement or of the exchange agreement by all
parties to the agreement shall be exempt from Chapter 3 (commencing
with Section 21100) to Chapter 6 (commencing with Section 21165),
inclusive, of Division 13 of the Public Resources Code.
   (3) For the purposes of this subdivision, "disposition" means the
sale, lease, or repurchase of state property or buildings specified
in subdivision (b).
   (i) The disposition of real property or buildings, or both,
pursuant to this section does not constitute a sale or other
disposition of state surplus property within the meaning of Section 9
of Article III of the California Constitution and shall not be
subject to subdivision (g) of Section 11011 of the Government Code.

  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   Sections 1 and 2 of Chapter 20 of the Fourth Extraordinary Session
of the Statutes of 2009 created, and authorized the sale of,
District 32a, which consists of real property in Orange County
commonly known as the Orange County Fair. In order to avoid the sale
of the Orange County Fair, it is necessary that this act take effect
immediately.