BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1481|
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                                    CONSENT


          Bill No:  SB 1481
          Author:   Senate Governmental Organization Committee
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  10-0, 4/13/10
          AYES:  Wright, Calderon, Denham, Florez, Negrete McLeod,  
            Oropeza, Padilla, Price, Wyland, Yee
          NO VOTE RECORDED:  Harman

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8 


           SUBJECT  :    State militia:  armories:  leases and sales

           SOURCE  :     California Military Department


          DIGEST  :    This bill makes it explicit that proceeds from  
          the sale of armories must be deposited in the Armory Fund,  
          notwithstanding specified Government Code provisions that  
          require proceeds from the sale or lease of surplus state  
          property be applied to retire accumulated deficits.

           ANALYSIS  :    Existing law generally requires the Director  
          of General Services (DGS) to perform various functions with  
          respect to state property and provides for the sale, lease,  
          or transfer of surplus state property.

          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  
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          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 under Section  
          11011 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.  Section 11011.1 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. This section of law also  
          prescribes the procedure for local agencies and nonprofit  
          affordable housing sponsors to use to obtain the surplus  
          state real property. 

          Existing law authorizes DGS, with the approval of the  
          Adjutant General, to lease for fair market value (up to 99  
          years) and sell any real property held for armory purposes,  
          subject to legislative approval.  Additionally, existing  
          law establishes the Armory Fund and requires that proceeds  
          from the sale or lease of armories be used for the  







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          maintenance of existing armories and for the acquisition or  
          construction of new armories.

          Proposition 60A of November 2004 (SCA 18, Johnson,  
          Resolution Chapter 103/04) which was adopted by the  
          electorate (73% 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.

           Comments

           Since the California Military Department (CMD) has separate  
          authority to sell and lease its property, and the Armory  
          Fund is a special fund, which was established in state law  
          to assist with funding the construction of new National  
          Guard armories, Military and Veterans Code Section 435  
          needs to be revised to ensure that the Armory Fund remains  
          a viable funding source for the acquisition, construction,  
          and maintenance of armories.

          Currently, Military and Veterans Code Section 435  
          authorizes DGS to lease or sell any real property used for  
          armory purposes when it is determined to be in the best  
          interest of the state.  Military and Veterans Code Section  
          435 makes no reference to "surplus property."  Further,  
          Military and Veterans Code Section 435 provides that,  
          within the State Treasury, is the Armory Fund.  All net  
          proceeds from the sale, lease, or exchange of National  
          Guard armories are to be deposited into this Armory Fund.   
          The money in the fund accumulates and is available, upon  
          appropriation by the Legislature, for the acquisition and  
          construction of replacement armories and for maintenance of  
          existing armories.  

          This bill makes it explicit that proceeds from the sale or  
          lease of armories must be deposited in the Armory Fund,  
          regardless of existing Government Code provisions that  
          require proceeds from the sale of surplus state property be  
          applied to retire state deficit recovery bonds. 

          The sponsor emphasizes that the National Guard's  
          infrastructure is vital to the State of California, thus,  
          any and all proceeds from the sale or lease of obsolete  







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          armories must continue to be deposited into the Armory  
          Fund.  Without working armories, the Guard's ability to  
          support state emergencies will be significantly impaired.

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

           SUPPORT  :   (Verified  4/26/10)

          California Military Department (source) 
          National Guard Association of California


          TSM:nl  4/26/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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