BILL NUMBER: SB 256	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 23, 2009
	AMENDED IN SENATE  MAY 21, 2009

INTRODUCED BY   Senator Aanestad

                        FEBRUARY 24, 2009

   An act to add Section 14673.3 to the Government Code, relating to
state property, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 256, as amended, Aanestad. State property: Department of the
California Highway Patrol.
   Existing law authorizes the Director of General Services to
acquire and convey real property for the state, whenever that
transfer of the real property is authorized or contemplated by law.
   This bill would authorize the director to sell, lease, exchange,
or any combination thereof, all or a portion of the Fir Street
Property, approximately 1.69 acres of real property in the City of
Chico, currently used by the Department of the California Highway
Patrol as its Chico area office, that is specifically declared not to
be surplus to the needs of the state. The bill would also authorize
the director to use the proceeds of any sale, lease, exchange, or any
combination thereof of all or a portion of the Fir Street Property
to acquire the land and facilities necessary to provide a substitute
location for the Chico area office of the Department of the
California Highway Patrol capable of accommodating its presently
necessary and future expansion, thereby making an appropriation. The
bill would require the director to initially offer the Fir Street
Property for disposition to the City of Chico  for local
government purposes and under terms and conditions that provide for
continuous operation of the state's facilities at the Fir Street
Property until relocation is accomplished  . The bill would
authorize the director to offer the Fir Street Property to the public
through a competitive selection process determined by the director
to be in the best interest of the state, if the City of Chico is
unable to enter an agreement for the disposition of the Fir Street
Property  within 120 days after notice from the Department of
General Services. The bill would require the Department of General
Services to be reimbursed for any reasonable cost or expense 
 incurred in the disposition of the Fir Street Property from the
proceeds of the disposition  . The bill would also require the
Department of General Services to obtain approval from the Department
of Finance prior to the execution of any disposition agreement
regarding the Fir Street Property, and to notify the  Chair
  Chairperson  of the Senate Committee on
Appropriations, the  Chair   Chairperson 
of the Assembly Committee on Appropriations, and the Chair
  Chairperson  of the Joint Legislative Budget
Committee, or his or her designee, in writing of the director's
intention to enter into a lease or an agreement, not less than the
minimum time that the  Chair   Chairperson 
of the Joint Legislative Budget Committee may in each instance
determine.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 14673.3 is added to the Government Code, to
read:
   14673.3.  (a) The Legislature finds and declares all of the
following:
   (1) The state owns approximately 1.69 acres of real property
located at 995 Fir Street in the City of Chico, currently used by the
Department of the California Highway Patrol as its Chico area
office.
   (2) For the purposes of this section, the real property described
in paragraph (1) shall be referred to as the "Fir Street Property."
   (3) The Chico area office of the department has outgrown the
facilities on the Fir Street Property, and relocating the operations
of the Chico area office to a location that will accommodate
presently necessary and future expansion will better protect the
health and safety of the residents of the state.
   (4) The Fir Street Property may be sold, exchanged, leased, or any
combination thereof and the proceeds used to carry out the intent of
the Legislature to provide a substitute location for the Chico area
office of the Department of the California Highway Patrol capable of
accommodating its presently necessary and future expansion.
   (5) Because the subject property is unsuitable to the needs of the
state rather than surplus, the Legislature hereby finds and declares
that the disposition of the Fir Street Property authorized by 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.
   (b) The Director of General Services may sell, exchange, lease, or
any combination thereof, all or a portion of the Fir Street
Property. The director shall use the proceeds of any sale, exchange,
lease, or any combination thereof made pursuant to this subdivision
to acquire the land and facilities described in subdivision (g) to
provide a substitute location for the Chico area office of the
Department of the California Highway Patrol capable of accommodating
its presently necessary and future expansion.
   (c) The director shall initially offer the Fir Street Property for
disposition, pursuant to the authorization described in subdivision
(b), to the City of Chico  for purposes of a local
government-owned facility, and under terms and conditions that
provide for continuous operation of the state's facilities at the Fir
Street Property until relocation is   accomplished  .
If the City of Chico is unable to enter into an agreement for the
disposition of the Fir Street Property  within 120 days after
notice from the Department of General Services  , the director
may offer the Fir Street Property for disposition, as described in
subdivision (b), to the public through a competitive selection
process determined by the director to be in the best interest of the
state.
   (d) Any exchange, lease, or sale of properties carried out
pursuant to this section shall be for no less than fair market value,
as determined by an independent appraisal  approved by the
Department of General Services  or pursuant to a competitive
selection process. Compensation for the Fir Street Property may
include land, or a combination of land, improvements, and money.
   (e) The Department of General Services shall be reimbursed for any
reasonable cost or expense incurred for the transactions described
in this section from the proceeds of the sale, lease, exchange, or
combination thereof of the Fir Street Property.
   (f) For the purposes of this section, the Fir Street Property
shall not be subject to the provisions of Section 11011.1 or Article
8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division
2 of Title 5.
   (g) The director may enter into one or more  agreements or
leases for the purpose of providing a substitute location for
  agreements, contracts, or leases to provide for
continuous operation of  the Chico area office of the Department
of the California Highway Patrol capable of accommodating its
presently necessary and future expansion.
   (h) (1) Any funds received from the sale, exchange, lease, or any
combination thereof, of all or a portion of the Fir Street Property
authorized by this section shall be held in trust and used only for
the acquisition, lease, lease-purchase, lease with an option to
purchase, or lease-purchase finance of the land and facilities
identified in subdivision (g) and are hereby appropriated to the
Department of General Services for expenditure for the purposes of
this subdivision.
   (2) For the purposes of this section, the terms "lease" or "leases"
mean a lease or the selection and acquisition of a lease-purchase,
lease-purchase finance, or lease with an option to purchase.
   (i) Notwithstanding Section 14669, if the City of Chico fails to
enter into an agreement for the disposition of the Fir Street
Property, the Department of General Services shall advertise the
availability of the Fir Street Property and award the sale, lease,
exchange, or any combination thereof,  of  all or a portion
of the Fir Street Property to the proposer offering to provide a
building or buildings that meet the state's requirements if the
director determines that the sale, lease, exchange, or any
combination thereof to be in the best interest of the state. The
director may also lease all or part of the Fir Street Property for a
period not to exceed 66 years.
   (j) (1) The Department of General Services shall develop the terms
and conditions of any disposition agreement regarding the Fir Street
Property, and provide them to the Department of Finance for review
prior to soliciting bids.
   (2) The Department of General Services shall obtain approval from
the Department of Finance prior to the execution of any disposition
agreement regarding the Fir Street Property.
   (3) The Department of General Services shall notify the 
Chair   Chairperson  of the Senate Committee on
Appropriations, the  Chair   Chairperson 
of the Assembly Committee on Appropriations, and the  Chair
  Chairperson  of the Joint Legislative Budget
Committee, or his or her designee, in writing of the director's
intention to enter into a lease or an agreement, not less than the
minimum time that the  Chair   Chairperson 
of the Joint Legislative Budget Committee, or his or her designee,
may in each instance determine.