BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1481|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 1481
Author: Senate Governmental Organization Committee
Amended: 8/2/10
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
SENATE FLOOR : 33-0, 4/29/10 (Consent)
AYES: Aanestad, Alquist, Ashburn, Calderon, Cedillo,
Cogdill, Corbett, Correa, Cox, DeSaulnier, Ducheny,
Dutton, Florez, Hancock, Harman, Hollingsworth, Huff,
Kehoe, Leno, Liu, Lowenthal, Negrete McLeod, Oropeza,
Padilla, Pavley, Price, Runner, Simitian, Steinberg,
Walters, Wolk, Wright, Wyland
NO VOTE RECORDED: Denham, Romero, Strickland, Wiggins,
Yee, Vacancy, Vacancy
ASSEMBLY FLOOR : 75-0, 8/18/10 - See last page for vote
SUBJECT : State militia: armories: leases and sales
SOURCE : California Military Department
DIGEST : This bill specifies that the proceeds from the
sale of armories must be deposited in the Armory Fund and
CONTINUED
SB 1481
Page
2
are not required to be used to retire bond debt resulting
from the 2004 Economic Recovery Bond Act.
Assembly Amendments provide that the proceeds from the sale
of armories are not subject to the Economic Recovery Bond
Act of 2004 provisions.
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
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
CONTINUED
SB 1481
Page
3
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
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
CONTINUED
SB 1481
Page
4
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 requires all proceeds from the disposition of
army properties be deposited in the Armory Fund and are not
subject to the Economic Recovery Bond Act of 2004
requirements.
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
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) (Unable to reverify)
California Military Department (source)
National Guard Association of California
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall,
Bill Berryhill, Tom Berryhill, Block, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Carter, Chesbro,
Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Eng, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani,
Gaines, Galgiani, Garrick, Gatto, Gilmore, Hagman, Hall,
Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Lieu, Bonnie Lowenthal, Ma,
Mendoza, Miller, Monning, Nava, Nestande, Niello,
Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin,
Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Villines, Yamada, John A. Perez
NO VOTE RECORDED: Blakeslee, Charles Calderon, Evans,
Logue, Vacancy
CONTINUED
SB 1481
Page
5
TSM:nl 8/18/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED