BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2279
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2279 (Evans)
          As Introduced  February 18, 2010
          Majority vote 

           BUSINESS & PROFESSIONS     7-4  APPROPRIATIONS      10-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Eng, Hernandez,  |Ayes:|Fuentes, Ammiano, Coto,   |
          |     |Hill, Ma,                 |     |Davis, Bonnie Lowenthal,  |
          |     |Nava, Ruskin              |     |Hall, Skinner, Solorio,   |
          |     |                          |     |Torlakson, Hill           |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Emmerson, Conway, Niello, |Nays:|Conway, Harkey, Miller,   |
          |     |Smyth                     |     |Nielsen, Norby            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Authorizes the Department of General Services (DGS) to  
          sell or exchange specified property to the County of Napa  
          (County).  Specifically,  this bill  :  

          1)Authorizes DGS to sell or exchange at no less than current  
            fair market value, by January 1, 2015, all or part of  
            approximately 850 acres of property located at the Napa State  
            Hospital, 2100 Napa Vallejo Highway, Napa to the County, upon  
            terms and conditions DGS deems are in the best interest of the  
            state.

          2)States that if the property is not sold or exchanged by  
            January 1, 2015, it is no longer surplus. 

          3)Requires the County to retain title to the entire property  
            sold or exchanged for use as a park or wildlife preserve, or  
            in the event of the future sale or exchange of that property  
            by the County, the County shall, by recorded easement,  
            restrict future uses of the property to those same uses.

          4)Requires the net proceeds of any moneys received from the  
            disposition of the property to be paid into the Deficit  
            Recovery Bond Retirement Sinking Fund Subaccount.  Reimburses  
            DGS for any cost or expense incurred in the disposition from  
            these proceeds.








                                                                  AB 2279
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          5)Permits the County to enter into an agreement with a nonprofit  
            land trust or nonprofit conservation entity for the purpose of  
            sharing the costs associated with the sale or exchange.

          6)Makes legislative findings and declarations.

           EXISTING LAW  :

          1)Authorizes DGS to dispose of surplus state real property by  
            sale, lease, exchange, a sale combined with an exchange, or  
            other manner of disposition of property, as authorized by the  
            Legislature, upon any terms and conditions and subject to any  
            reservations and exceptions that DGS deems to be in the best  
            interests of the state.

          2)Requires state agencies to annually review proprietary state  
            lands under its jurisdiction to determine what lands are in  
            excess of the agency's foreseeable needs and to report such to  
            DGS.  These lands include, but are not limited to:

             a)   Land not currently being utilized, or currently being  
               underutilized, for any existing or ongoing program;

             b)   Land for which the agency has not identified any  
               specific utilization relative to future needs; and,

             c)   Land not identified by the agency within its master plan  
               for facility development.

          3)Requires state agencies, when purchasing real property, to  
            review the Surplus Property Inventory of state properties and  
            purchase, lease, or trade property on that list, if possible,  
            prior to purchasing property not on the inventory.

          4)Provides that a local agency that expresses interest in  
            acquiring a parcel of surplus property shall demonstrate, to  
            the satisfaction of DGS that the real property is to be used  
            by the local agency for open space, public parks, affordable  
            housing projects, or development of local government-owned  
            facilities.

          5)Requires that the proceeds from the sale of surplus state  
            property, with specified exceptions, be used to pay the  








                                                                  AB 2279
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            principal and interest on the Economic Recovery Bond Act of  
            2004, Proposition 60A, adopted by the voters in November 2004.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, based on an almost identical legislative proposal in  
          2007, DGS estimated the value of the property at about $4  
          million. Pursuant to Proposition 60A, which was passed by the  
          voters in November 2004, the proceeds of this sale, less DGS  
          transaction costs, will be used to pay off the state's Economic  
          Recovery Bonds.  In the event those bonds are already paid off  
          at the time of sale, the proceeds will go to the General Fund.

           COMMENTS  :  The 850-acre parcel, known as Skyline Park, is  
          located on the grounds of Napa State Hospital in Napa County and  
          includes more than 12 miles of hiking, riding and bicycling  
          trails, a native plant garden, horse arena, archery range and a  
          "disc" golf course.

          Since 1979, Napa County has leased the property from the state  
          for $100 per year, with the current lease expiring in 2030.   
          This property was placed on the surplus property list by the  
          Department of Mental Health (DMH).  According to the author's  
          office, even after the sale, DMH would retain sufficient  
          property near the present hospital for any foreseeable  
          expansion.

          Napa County has a Transient Occupancy Tax ordinance which sets  
          aside money to fund county parks, and, thus, has a dedicated  
          revenue stream to afford this property.

          According to the sponsor, the Napa County Board of Supervisors,  
          "The intent of AB 2279 is to preserve the property as a public  
          park in perpetuity.  The Park is used extensively by hikers,  
          mountain bikers, and equestrians.  Keeping this parcel open to  
          citizens as a public park for future generations is enormously  
          important to the Board as well as Napa County citizens."


           Analysis Prepared by  :    Sarah Weaver / B., P. & C. P. / (916)  
          319-3301                                               FN:  
          0004074