BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1580
                                                                  Page  1

          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. 








                                                                  SB 1580
                                                                  Page  2

               
          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 








                                                                  SB 1580
                                                                  Page  3

            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 








                                                                  SB 1580
                                                                  Page  4

          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 








                                                                  SB 1580
                                                                  Page  5

          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 












                                                                  SB 1580
                                                                  Page  6