BILL ANALYSIS Ó AB 324 Page 1 Date of Hearing: April 6, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 324 (Buchanan) - As Amended: March 15, 2011 Policy Committee: Business and Professions Vote: 7-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires the Department of General Services (DGS), when selecting locations for state-owned or -leased buildings exceeding 10,000 square feet, to consider all of the following: 1)The location of the community or population served. 2)The residential location of the state workforce to be housed. Priority may be given to areas demonstrating the highest reduction of miles traveled by the workforce. 3)The availability and proximity of transit service. FISCAL EFFECT DGS indicates that, on behalf of state departments, it enters into about 100 leases for new space each year, and that most of these leases are for less than 10,000 square feet. If one-fourth of this activity involved leases exceeding 10,000 square feet, and assuming the additional analyses regarding the workforce to be housed at prospective state offices cost an average of $2,000 (40 hours of staff time at $50 per hour), the annual costs would average about $50,000 from the Service Revolving Fund (ultimately funded by the General Fund and numerous special funds depending on the particular state departments involved). COMMENTS 1)Purpose . According to the sponsor, the City of Elk Grove, AB 324 Page 2 "The single largest source of greenhouse gases in California is emissions from passenger vehicles, and in order to reduce those emissions, we must work to reduce Californians' vehicle-miles traveled?AB 324 will empower the State of California to lead by example by locating State office buildings close to where the State workforce lives." The sponsor indicates that 12,625 Elk Grove residents (almost 1 in 10) are state government workers, and that almost 80% (about 10,000) drive to work alone. 2)Current Location Criteria . DGS currently has numerous requirements with which to comply when locating state operations. For example, Government Code Section 15808.1 in general requires DGS to consider locating state buildings in public transit corridors. Executive Order D-46-01 requires numerous location considerations, including: a) Preferred siting or leasing in a central city or area of similar character immediately adjacent thereto. b) Proximity to public transit and other needed infrastructure. c) Proximity to affordable and available housing. d) Pedestrian access to retail and commercial facilities, and exploiting opportunities for mixed use; e) Indications of the need for neighborhood economic revitalization. f) Opportunities to utilize structures of historic, cultural or architectural significance. g) Advice and recommendations of local elected officials and their staff with consideration to any incentives offered by local government. 1)Prior Legislation . This bill is almost identical to AB 1006 (Buchanan) of 2009, which was vetoed by Governor Schwarzenegger, who argued that the bill was unnecessary in light of all the factors DGS current considers in locating AB 324 Page 3 state offices. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081