BILL ANALYSIS                                                                                                                                                                                                    

                                                                  SB 1481
                                                                  Page  1

          Date of Hearing:   June 15, 2010

                                 Mary Hayashi, Chair
                SB 1481 (Committee on Governmental Organization) - As  
                             Introduced:  March 8, 2010

           SENATE VOTE  :   33-0
          SUBJECT  :   State militia: armories: leases and sales.

           SUMMARY  :   Specifies that the proceeds from the sale of armories  
          must be deposited in the Armory Fund (Fund), notwithstanding  
          requiring surplus state property proceeds be used to retire bond  

           EXISTING LAW  : 

          1)Authorizes the Department of General Services, with the  
            approval of the Adjutant General, to lease up to 99 years or  
            sell at fair market value, as specified, any real property  
            held for armory purposes, with statutory approval. 

          2)Establishes the Fund for the deposit of proceeds from the sale  
            or lease of armories and authorizes the use of available funds  
            upon appropriation by the Legislature for the maintenance of  
            existing armories and construction of new or replacement  

          3)Requires the proceeds from the sale of state surplus real  
            property be used to pay the principal and interest on the  
            Economic Recovery Bond Act of 2004 and subsequently be  
            deposited into the Special Fund for Economic Uncertainties. 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, "Within  
          the State Treasury is a special fund, the Fund, where proceeds  
          from the sale or lease of National Guard armories are deposited  
          in order to finance the construction of new armories and the  
          renovation of existing armories.  An amendment to the California  
          Military and Veterans Code Section 435 is required to ensure  


                                                                  SB 1481
                                                                  Page  2

          that monies from the sale of armory properties, no longer  
          utilized by the California National Guard, continue to be  
          deposited in the Fund. 

           Background  .  In November 2004, voters passed Proposition 60A,  
          which requires the proceeds of the sale of surplus property to  
          be used to pay down the $15 billion in deficit bonds included in  
          the 2003-04 Budget.  These payments are intended to accelerate  
          the retirement of the state's debt, and reduce future General  
          Fund payments to the bondholders.  Existing law also provides  
          the California Military Department with separate authority to  
          sell and lease its property, with the revenues earned to be  
          deposited into the Fund.  

           Support  .  According to the sponsor, the California Military  
          Department, [The Fund] is a special fund established in state  
          law to assist with funding the construction or renovation of CNG  
          armories.  SB 1584 will make a clarifying revision to the  
          Military and Veterans Code Section 435 to ensure the Fund  
          remains a viable funding source for the acquisition and  
          construction of future armories."

          According to the National Guard Association of California, "SB  
          1481 ensures a viable funding source for the acquisition,  
          construction and maintenance of CNG armories.  This is essential  
          as these armories not only house the men and women of the CNG,  
          but are also utilized by the state as temporary shelters,  
          warning stations and emergency response coordination centers." 


          California Military Department (sponsor) 
          National Guard Association of California
          None on file. 

           Analysis Prepared by :    Joanna Gin / B.,P. & C.P. / (916)