BILL NUMBER: SB 256	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 2, 2009
	PASSED THE ASSEMBLY  AUGUST 27, 2009
	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, 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 Chairperson of the Senate Committee on Appropriations, the
Chairperson of the Assembly Committee on Appropriations, and the
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
Chairperson of the Joint Legislative Budget Committee may in each
instance determine.
   Appropriation: yes.


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, 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
Chairperson of the Senate Committee on Appropriations, the
Chairperson of the Assembly Committee on Appropriations, and the
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
Chairperson of the Joint Legislative Budget Committee, or his or her
designee, may in each instance determine.