BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2279|
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                                 THIRD READING


          Bill No:  AB 2279
          Author:   Evans (D)et al
          Amended:  8/9/10 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  8-1, 6/22/10
          AYES:  Wright, Calderon, Denham, Florez, Negrete McLeod,  
            Padilla, Price, Yee
          NOES:  Harman
          NO VOTE RECORDED:  Oropeza, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  7-3, 8/2/10
          AYES:  Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
          NOES:  Ashburn, Emmerson, Wyland
          NO VOTE RECORDED:  Walters

          ASSEMBLY FLOOR  :  51-24, 5/6/10 - See last page for vote


           SUBJECT  :    Surplus state property:  County of Napa

           SOURCE  :     Author


           DIGEST  :    This bill grants the Director of General  
          Services (DGS) the authority to sell or exchange at fair  
          market value, based upon appraisal approved by DGS, by  
          January 1, 2015, to the County of Napa, certain property  
          located in the County upon terms and conditions the  
          Director deems are in the best interests of the state.

           ANALYSIS  :    Existing law authorizes DGS to perform various  
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          functions with regard to state property and provides for  
          the sale, lease, or transfer of surplus state property, if  
          authorized or contemplated by law.  

          Existing law requires the Director of DGS to request  
          authorization by the Legislature prior to the disposition  
          by sale or otherwise of state land reported to it by a  
          state agency as being in excess of its foreseeable needs.   
          Each state agency is required 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 to DGS.  

          This annual review of proprietary state lands does not  
          apply to tax-deeded land, land held for highway purposes,  
          lands under the jurisdiction of the State Lands Commission,  
          land that has escheated to the state or that has been  
          distributed to the state by a court decree in estates of  
          deceased persons, and lands under the jurisdiction of the  
          State Coastal Conservancy.  Jurisdiction of all land  
          reported as excess is transferred to DGS, when requested by  
          the Director of DGS, for sale or disposition or as may  
          otherwise be authorized by law.

          Existing law provides criteria for state agencies to use in  
          determining and reporting to DGS lands in excess of the  
          agency's foreseeable needs.  A state agency is to include  
          land not currently being utilized, or currently being  
          underutilized, for any existing or ongoing program; land  
          for which the agency has not identified any specific  
          utilization relative to future needs; and land not  
          identified by the agency within its master plan for  
          facility development.

          Where applicable within its jurisdiction, DGS is  
          responsible for determining if surplus land is needed by  
          any other state agency.  Existing law requires the state to  
          first offer surplus state real property to local agencies,  
          and next, to offer the property to nonprofit affordable  
          housing sponsors, as defined, prior to offering the  
          property to private entities.  Existing law also prescribes  
          the procedure for local agencies and nonprofit affordable  
          housing sponsors to use to obtain the surplus state real  
          property. 

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          Existing law specifies that the Legislature may authorize a  
          particular surplus property be sold at less than fair  
          market value and provides that 30 days prior to executing  
          such a transaction, DGS must report to the chairs of the  
          fiscal committees of the Legislature the following  
          information:  (a) the financial terms of the transaction;  
          (b) a comparison of fair market value for the property and  
          financial terms; and (c) the basis for agreeing to terms  
          and conditions other than fair market value. 

          Existing law contains provisions exempting the sale of  
          surplus property from designated provisions of the  
          California Environmental Quality Act (CEQA).  Specifically,  
          the law provides that any disposition of a parcel of  
          surplus property made on an "as-is" basis shall be exempt  
          from statutory requirements of CEQA; however, the law makes  
          it explicit that the buyer or transferee of a parcel shall  
          be subject to any local governmental entitlement or land  
          use approval requirements and CEQA.

          Furthermore, existing law provides that if any transaction  
          is not on an "as-is" basis sale and close of escrow is  
          contingent on satisfying any local governmental approvals  
          for entitlement or land use requirements, including  
          compliance by the local government with CEQA, then the  
          execution of the purchase and sale agreement or exchange  
          agreement is exempt from CEQA.

          Existing law requires DGS to maintain a complete and  
          accurate inventory of all real property held by the state  
          and categorize that inventory by agency and geographic  
          location.  The law also requires DGS to update the  
          inventory annually. 

          Proposition 60A of November 2004 (SCA 18 [Johnson],  
          Resolution Chapter 103, Statutes of 2004) which was adopted  
          by the electorate (73 percent margin) requires, among other  
          things, that the proceeds from the sale of surplus state  
          property, with specified exceptions, be used to pay the  
          principal and interest on the Economic Recovery Bond Act of  
          2004.

          This bill:

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          1. Authorizes the Director of DGS to sell or exchange, at  
             current fair market value, based upon an appraisal  
             approved by DGS, by January 1, 2015, approximately 850  
             acres of property, known as Skyline Park, (located at  
             the Napa State Hospital, 2100 Napa Vallejo Highway, in  
             the County of Napa) to the County of Napa, upon terms  
             and conditions the Director deems are in the best  
             interests of the state.  

          2.  Stipulates that any agreement for the sale or exchange  
             of the property must require the County of Napa to  
             retain title to the entire property for use as a park or  
             wilderness preserve, or in the event of a future sale of  
             that property by the County, require the County, by  
             recorded easement, to restrict future uses of the  
             property to those same uses. 

          3. Provides that any agreement for the sale or exchange of  
             the property must preserve Napa State Hospital's  
             ownership and use of the property known as "Camp Coombs"  
             and include an easement that provides the Hospital with  
             access to the Camp.

          4. Provides that DGS shall be reimbursed from sale proceeds  
             for any costs incurred to sell the property.   
             Additionally, requires that net proceeds be deposited  
             into the Deficit Recovery Bond Retirement Sinking Fund  
             Subaccount.  
           
          5. Permits the County of Napa 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 of the property.

          6. Contains legislative findings and declarations relative  
             to the importance of Camp Coombs and declares the  
             County's intent to ensure that Napa State Hospital  
             maintains ownership, usage and access to the Camp. 

          7. Declares legislative intent that any purchase agreement  
             clearly state that the operations and activities at Camp  
             Coombs shall remain unobstructed and unaffected by the  
             sale and that access to the Camp be preserved through a  

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             recorded easement.

           Comment
           
          According to the author's office, the 850 acres of  
          state-owned property, known as Skyline Park, has been  
          leased to Napa County and operated as a public park and  
          natural area since 1979.  The property includes more than  
          12 miles of hiking, riding and bicycling trails, a native  
          plant garden, horse arena, archery range and a "disc" golf  
          course.

          The Napa County Board of Supervisors considers "the  
          preservation of Skyline Park as a publicly-owned  
          recreational facility a key policy issue and a high  
          legislative priority."

          The author's office points out that the County of Napa has  
          a Transient Occupancy Tax ordinance in place which sets  
          aside money to fund county parks, and thus, has a dedicated  
          revenue stream to afford this property.

           Prior Legislation

           The provisions of this bill were originally contained in  
          the annual surplus property bills of 2005 and 2006 (AB 54  
          and AB 53 - both authored by Assembly member Negrete McLeod  
          - AB 54 was vetoed by the Governor because of provisions  
          requiring DGS to initiate a CEQA review process on the  
          properties identified prior to any sale, lease, or  
          exchange; and, AB 53 died on the Senate Inactive File).   
          Additionally, this bill is nearly identical to SB 1226 of  
          2006, authored by Senator Chesbro which was held on the  
          Assembly Floor and SB 678 (Wiggins) of 2007 which was  
          vetoed by the Governor on the basis that it did not contain  
          a CEQA exemption. 

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee analysis:

                          Fiscal Impact (in thousands)


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           Major Provisions                     2010-11     2011-12     
           2012-13          Fund  

          Sale or lease of                                  One time  
          revenue increase from         General*
            state property         sale or exchange, less that fair
                                   market value to the extent  
          specified 
                                   sale conditions reduce potential 
                                   bidder interest

          *Deficit Recovery Bond Retirement Sinking fund Subaccount

           SUPPORT  :   (Verified  8/9/10)

          Napa County Board of Supervisors (source)
          Napa County Regional Park and Open Space District
          City of American Canyon

          Numerous local residents


           ASSEMBLY FLOOR  : 
          AYES:  Ammiano, Arambula, Beall, Blakeslee, Blumenfield,  
            Bradford, Brownley, Buchanan, Caballero, Charles  
            Calderon, Carter, Chesbro, Conway, Coto, Davis, De La  
            Torre, De Leon, Eng, Evans, Feuer, Fong, Fuentes,  
            Furutani, Galgiani, Hall, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jones, Lieu, Bonnie Lowenthal, Ma,  
            Monning, Nava, Nestande, Norby, V. Manuel Perez,  
            Portantino, Ruskin, Salas, Saldana, Skinner, Solorio,  
            Swanson, Torlakson, Torres, Torrico, Yamada, John A.  
            Perez
          NOES:  Adams, Anderson, Bill Berryhill, Tom Berryhill,  
            Cook, DeVore, Emmerson, Fletcher, Fuller, Gaines,  
            Garrick, Hagman, Harkey, Jeffries, Knight, Logue, Miller,  
            Niello, Nielsen, Silva, Smyth, Audra Strickland, Tran,  
            Villines
          NO VOTE RECORDED:  Bass, Block, Gilmore, Mendoza, Vacancy


          TSM:do  8/9/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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