BILL NUMBER: AB 2605	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 2, 2010
	AMENDED IN SENATE  JUNE 15, 2010
	AMENDED IN ASSEMBLY  JUNE 1, 2010
	AMENDED IN ASSEMBLY  APRIL 27, 2010

INTRODUCED BY   Committee on Accountability and Administrative Review
(De La Torre (Chair),  Audra Strickland (Vice Chair),
 Arambula,  Tom Berryhill,  Block,
Buchanan, Caballero,  Fletcher,  Huber, Jones,
Bonnie Lowenthal,  and  V. Manuel Perez  , and
Villines  )

                        FEBRUARY 19, 2010

   An act to amend Section 14670.13 of the Government Code, relating
to state property, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2605, as amended, Committee on Accountability and
Administrative Review. State property: sales.
   (1) Existing law, enacted in 2009, authorized the sale or lease of
specified real property or buildings, or both, in Los Angeles,
Oakland, Rancho Cordova, Sacramento, San Francisco, and Santa Rosa.
Existing law authorizes the Director of General Services to determine
the terms and conditions that are to be imposed upon that sale or
lease, for the best interests of the state.
   This bill would require the Director of General Services, at least
30 days prior to executing a transaction for a sale or lease as
described above, to submit to the chairs of the fiscal committees of
the Legislature an analysis of the transaction comparing the costs
and benefits to the state of a sale or lease of the real property or
building to continued ownership over a 50-year period. The bill would
prohibit the real property or buildings from being sold or leased
until the Legislature determines that the transaction is in the best
interests of the state, makes a finding to this effect, and
explicitly authorizes the sale by statute.
   (2) 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 14670.13 of the Government Code is amended to
read:
   14670.13.  (a) Notwithstanding any other law, but subject to the
conditions specified in subdivisions (c) and (e), the Department of
General Services may enter into a sale or long-term lease of the
properties specified in subdivision (b). A sale or long-term lease
entered into pursuant to this section may include an option for the
state to repurchase that property or building, or both. Subject to
the limitations of this section, the Director of General Services may
determine the other terms and conditions that shall be imposed upon
that sale or lease, for the best interests of the state. Any sale of
property pursuant to this section shall be for no less than fair
market value.
   (b) Subject to the conditions specified in subdivisions (c) and
(e), the Department of General Services may enter into a sale or
long-term lease pursuant to this section for any, or all, of the
following real properties or buildings, or both:
   (1) The Attorney General Building located at 1300 I Street in the
City of Sacramento.
   (2) The California Emergency Management Agency Building located at
3650 Schriever Avenue in the City of Rancho Cordova.
   (3) The Capitol Area East End Complex, located in the City of
Sacramento, at all of the following locations:
   (A) Block 225 located at 1430 N Street in the City of Sacramento.
   (B) Block 171 located at 1501 Capitol Avenue in the City of
Sacramento.
   (C) Block 172 located at 1500 Capitol Avenue in the City of
Sacramento.
   (D) Block 173 located at 1615 Capitol Avenue in the City of
Sacramento.
   (E) Block 174 located at 1616 Capitol Avenue in the City of
Sacramento.
   (F) The parking facility located at 1214 17th Street in the City
of Sacramento.
   (4) The Elihu M. Harris Building located at 1515 Clay Street in
the City of Oakland.
   (5) The Franchise Tax Board Complex located at 9645 Butterfield
Way in the City of Sacramento.
   (6) The San Francisco Civic Center, also known as the Earl
Warren/Hiram Johnson Building, at both of the following locations:
   (A) 350 McAllister Street in the City and County of San Francisco.

   (B) 455 Golden Gate Avenue in the City and County of San
Francisco.
   (7) The New Junipero Serra State Building located at 320 West 4th
Street in the City of Los Angeles.
   (8) The Department of Justice Building located at 4949 Broadway in
the City of Sacramento.
   (9) The Public Utilities Commission Building, also known as the
Governor Edmund G. "Pat" Brown Building, located at 505 Van Ness
Avenue in the City and County of San Francisco.
   (10) The Judge Joseph A. Rattigan Building located at 50 D Street
in the City of Santa Rosa.
   (11) The Ronald Reagan State Building located at 300 South Spring
Street in the City of Los Angeles.
   (c) (1) The Legislature hereby finds and declares it may be
infeasible to sell or lease the real property or buildings listed in
subdivision (b), if the real property or buildings have outstanding
lease-revenue bonds due to bond covenants, market disclosure issues,
and federal tax regulations and the bonds cannot be defeased or
otherwise retired.
   (2) If the proceeds of a sale subject to this section will be used
to defease or otherwise retire lease-revenue bonds on real property
or a building listed in subdivision (b), the proceeds in an amount
necessary to defease or retire the bonds are hereby appropriated to
the Department of General Services, and the Department of General
Services may sell that building or real property pursuant to this
section, including a fee simple sale or the sale of a lesser property
interest, such as a long-term lease of the real property, only if
the issuer and trustee for the bonds approves the sale transaction
and this approval takes into consideration, among other things, that
the proposed sale transaction will not breach any covenant or
obligation of the issuer or trustee.
   (d) The disposition of the real properties or buildings, or both,
pursuant to this section does not constitute a sale or other
disposition of surplus state 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.
   (e) (1) Thirty days prior to executing a transaction for a sale or
lease of any of the real property or buildings listed in subdivision
(b), the Director of General Services shall report to the chairs of
the fiscal committees of the Legislature the terms and conditions of
the transaction, including, but not limited to, the financial terms.
   (2) At least 30 days prior to executing a transaction for a sale
or lease of any of the real property or buildings listed in
subdivision (b), the Director of General Services shall submit to the
chairpersons of the fiscal committees of the Legislature an analysis
of the transaction comparing the costs and benefits to the state of
a sale or lease of the real property or building to the continued
ownership of the real property or building over a 50-year period. The
real property or buildings shall not be sold or leased until the
Legislature determines that the transaction is in the best interests
of the state, makes a finding to this effect, and explicitly
authorizes the sale by statute.
   (f) Commencing in 2010, on or before June 30 of each year
following the enactment of this section, the Director of General
Services shall report the status of any completed or pending 
sales   sale made  pursuant to this section to the
fiscal committees of the Legislature.
   (g) (1) The Department of General Services shall be reimbursed for
any reasonable costs or expenses incurred pursuant to this section.
   (2) All issuer- and trustee-related costs of reviewing any
proposed sale transaction, and all costs related to the defeasance or
other retirement of any bonds, including the cost of nationally
recognized bond counsel, shall be paid from the proceeds of a sale or
lease conducted pursuant to this section.
   (3) The Department of General Services shall deposit in the
General Fund the net proceeds from the sale or long-term lease of the
real properties or buildings leases, or both, made pursuant to this
section, after deducting the amount of reimbursement for costs
incurred pursuant to this section or the reimbursement of adjustments
to the General Fund loan.
   (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).
  SEC. 2.  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:
   In order that the Legislature may review the costs and benefits of
the proposed sale or lease of buildings described in Section
14670.13 of the Government Code before the Department of General
Services acts to sell or lease the buildings, it is necessary that
this bill go into immediate effect.