BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1167
                                                                  Page  1

          Date of Hearing:   June 30, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 1167 (Cogdill) - As Amended:  March 22, 2010 

          Policy Committee:                              Business and  
          Professions  Vote:                            11-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill authorizes the Department of General Services (DGS) to  
          dispose of two surplus state properties:

          1)The Department of Food and Agriculture's Veterinary Laboratory  
            (2.59 acres), located in Fresno.

          2)The DMV field office (1.1 acres) located in Roseville (Placer  
            County).

           FISCAL EFFECT  

          The estimated values of the laboratory and field office are  
          $300,000 to $400,000 and $750,000 to $1.2 million, respectively.  
          Pursuant to current law, these properties must first be offered  
          to local government or non-profit housing sponsors for the  
          development of low- or moderate-income housing, and second to  
          local government for open space, parks, or local government  
          facilities. In these cases, the state may sell the property at  
          less than fair market value. If a property is not transferred  
          for one of the aforementioned uses, it is offered to private  
          entities and sold to the highest bidder.

          To the extent either of these properties were acquired with  
          General Fund moneys, the proceeds of any sale, net of DGS  
          transaction costs, must be directed toward retirement of the  
          state's economic recovery bonds, and if those bonds are retired,  
          to the General Fund. To the extent either property was acquired  
          with moneys from a special fund, net proceeds from a sale will  
          be deposited in the special fund.









                                                                  SB 1167
                                                                  Page  2

           COMMENTS  

           Purpose  . This is the annual state surplus property bill  
          sponsored by DGS. Current law requires all state agencies to  
          annually review and determine if any lands under their  
          jurisdiction are in excess of their needs. This information is  
          provided to DGS, which annually must report these excess lands  
          to the Legislature and request authorization to sell these  
          properties. DGS must also determine whether other state agencies  
          can utilize surplus properties. With respect to the two  
          properties in this bill, the laboratory has been closed and the  
          DMV has moved to a larger field office in Roseville.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081