BILL ANALYSIS Ó
SB 1580
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Date of Hearing: June 26, 2012
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
SB 1580 (Committee on Government Organization) - As Amended:
June 18, 2012
SENATE VOTE : 37-0
SUBJECT : State surplus property: armories: sales.
SUMMARY : Authorizes the Department of General Services (DGS)
with the Adjutant General's approval, to sell specified armory
properties. Authorizes the DGS to dispose of all or any portion
of three specified parcels of state property and rescinds the
surplus authorization of two specified properties.
Specifically, this bill :
1)Authorizes the DGS, with the Adjutant General's approval, to
sell the following properties "as is" and subject to any local
governmental land use entitlement requirements:
a) Approximately 4.59 acres of real property, located at
2320 N. Parmelee Avenue, Compton, California, known as the
Compton Parmelee Armory;
b) Approximately 2.0 acres of real property, located at 900
Powell Avenue, Healdsburg, California, known as the
Healdsburg Armory;
c) Approximately 1.57 acres of real property, located at
14061 Nevada City Highway, Nevada City, California, known
as the Nevada City Armory; and,
d) Approximately 2.84 acres of real property with
improvements made thereon, located at 950 West Laurel
Street, Willows, California, known as the Willows Armory.
2)Requires that the proceeds from the sale of armories
authorized above be deposited in the Armory Fund (Fund).
3)Requires the Military Department (MD) to reimburse the DGS for
any reasonable costs incurred in selling the specified
armories.
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4)Authorizes DGS to dispose of all or any portion of the
following three specified parcels of state property:
a) Approximately 1.42 acres, formerly known as the
Employment Development Department Field Office, located at
135 West Fremont, in Stockton, San Joaquin County.
Proceeds from this sale shall be subject to the
reimbursement of federal equity financing, if any exists in
the property, as required under applicable state and
federal law;
b) Approximately 0.36 acres, known as the California
Department of Corrections and Rehabilitation (CDCR) Watts
Parole Center, located at 9110 S. Central Avenue, in Los
Angeles, Los Angeles County; and,
c) Approximately 0.6 acres, including a 1,113 square foot
residence and garage identified as Assessor Parcel Number
004-050-031-000, known as the CDCR Single Family Residence,
located on Sutter Lane, in Ione, Amador County.
5)Rescinds the surplus authorization of the following two
specified properties:
a) Approximately 2 acres, known as the Healdsburg Armory,
located at 900 Powell Avenue, Healdsburg, Sonoma County,
declared surplus property sale in AB 1123, Chapter 625,
Statutes of 2007; and,
b) Real property under the jurisdiction of the Department
of Motor Vehicles (DMV), known as the DMV Santa Maria Field
Office, located at 523 South McClellan Street, Santa Maria,
Santa Barbara County, declared surplus in AB 358, Chapter
448, Statutes of 2007.
EXISTING LAW :
1)Specifies that the proceeds from the sale of armories must be
deposited in the Fund and are not required to be used to
retire bond debt resulting from the 2004 Economic Recovery
Bond Act (ERB Act). (Military and Veterans Code Section 435)
2)Authorizes the DGS to develop and review an inventory of
property surplus to the needs of the state in portions or
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their entirety, and allows the DGS, subject to legislative
approval, to sell, lease, exchange, or transfer various
specified properties for current market value, or upon terms
and conditions as the DGS determines are in the state's best
interests.
3)Establishes criteria for state agencies to use in determining
and reporting excess lands. The law requires a state agency
to include:
a) Land not currently being utilized, or currently being
underutilized, for any existing or ongoing program;
b) Land for which the agency has not identified any
specific utilization relative to future needs; and,
c) Land not identified by the agency within its master plan
for facility development.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "This
bill will authorize the MD, in coordination with the DGS, to
sell four California National Guard (CNG) armory properties and
deposit any net proceeds into the Fund? It is vital to the CNG
infrastructure that all proceeds from the sale of unusable
armories be deposited in the Fund. Without working armories,
the CNG's ability to support state emergencies will be
significantly impaired."
Background . This bill is comprised of two parts - the first
part relates to the sale of four armories and the second part
relates to the disposition and rescission of state surplus
properties.
For the first part relating to the sale of armories, the
author's office states that the Compton-Parmelee, Healdsburg,
Nevada City, and the Willows Armories have reached the end of
their service life. Armories are the primary place for unit
training. According to the author's office, the average age of
these armories is 60 years and they are no longer practical or
safe for CNG soldiers to assembly in. The MD has approximately
103 active armory sites throughout the state. The CNG has dual
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responsibilities to federal authorities to ensure the readiness
of forces for national security missions and to the Governor for
state missions.
Armories are routinely used for emergency operations, such as
mobilizing and housing CNG soldiers responding to wildfires,
while serving as emergency operation centers for other
first-responder agencies. Armories are also commonly used as
shelters for displaced civilians who have been evacuated from
their homes due to fires, floods, or other state emergencies.
Several armories throughout the state routinely serve as
homeless shelters during winter months.
This bill would authorize the DGS, with the Adjutant General's
approval, to dispose of four armories, with the proceeds from
the sale going towards the Fund to provide financial support for
the ongoing maintenance of active armories. As this bill is
written, the CNG armories are not deemed state surplus property.
The second part of this bill may be considered the provisions of
the annual surplus property bill sponsored by the DGS. Existing
law requires all state agencies to annually review and determine
if any lands under their jurisdiction are in excess of need.
This information is provided to DGS to annually report to the
Legislature the excess lands and request authorization to sell
excess land. When selling state surplus property, the DGS must
determine if other state agencies can utilize the land. If the
state has no need, the DGS must then offer surplus state real
property to local agencies, and next, to nonprofit affordable
housing sponsors prior to offering the property to private
entities.
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.
Support . According to the sponsor, the MD, "SB 1580 will
authorize the MD, in coordination with the DGS, to sell four CNG
armory properties and deposit the net proceeds into the Fund.
These four facilities are no longer suitable for CNG soldiers to
assemble and train in: the Compton-Parmelee, Healdsburg, Nevada
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City, and Willows Armories. These aged, undersized armories
have decayed to a point where their ongoing maintenance costs
far outweigh their utility. Pursuant to state law, all net
proceeds from the sale, lease, or exchange of CNG armories are
deposited into the Fund. These monies accumulate in the Fund
and are available, upon appropriation by the Legislature, for
the acquisition and construction of replacement armories, as
well as funding much-needed maintenance of existing operational
armories."
Previous Legislation . AB 1272 (Butler), Chapter 178, Statutes
of 2011, authorized the DGS to dispose of all or any portion of
six specified parcels of state property, and rescinded the
surplus authorization of two specified properties.
SB 1481 (Committee on Governmental Organization), Chapter 528,
Statutes of 2010, specified that the proceeds from the sale of
armories must be deposited in the Fund and are not required to
be used to retire bond debt resulting from the 2004 ERB Act.
AB 900 (Hall) of 2009, would have authorized the DGS to lease
state owned property, the Compton Armory, to the City of Compton
at fair market value for a period not to exceed five years, with
an option to extend the lease to 25 years. The Governor vetoed
this bill with the following message: "This bill is unnecessary.
Current law already authorizes the DGS to enter into long-term
leases on State-owned land that may have some potential future
use to the program needs."
REGISTERED SUPPORT / OPPOSITION :
Support
Military Department (sponsor)
Opposition
None on file.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301
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