BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1580
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

           SB 1580 (Committee on Governmental Organization) - As Amended:  
                                   August 6, 2012 

          Policy Committee:                              B&P  Vote:9-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill authorizes the disposition of four armory properties 
          and three other state properties, and rescinds the authority to 
          dispose of one other state property previously declared surplus 
          to the state's needs. Specifically, this bill:

          1)Authorizes the Director of General Services (DGS), with 
            approval of the Adjutant General, to sell the following state 
            armory properties:

             a)   Compton Parmelee Armory in Los Angeles County (4.59 
               acres).
             b)   Healdsburg Armory in Sonoma County (2.0 acres).
             c)   Nevada City Armory in Placer County (1.57 acres).
             d)   Willows Armory in Mendocino County (2.84 acres).

          2)Clarifies that DGS will be reimbursed for its transaction 
            costs and that net proceeds from sale of the above properties, 
            pursuant to current law, are to be deposited into the Armory 
            Fund.

          3)Authorizes DGS to sell, exchange, or lease, for fair market 
            value the following state properties determined to be surplus 
            to the state's needs:

             a)   A former Employment Development Field Office (1.42 
               acres) in Stockton.
             b)   The California Department of Corrections and 
               Rehabilitation's (CDCR's) Watts Parole Center (0.36 acres) 
               in the City of Los Angeles.
             c)   A single family residence (1,113 square feet) in Ione 








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               (Amador County), currently under the control of CDCR.

          4)Rescinds the authority of DGS to dispose of the following 
            state properties previously declared surplus:

             a)   The Healdsburg Armory in Sonoma County (2.0 acres), 
               which will be disposed of pursuant to (1) above.
             b)   The DMV's Santa Maria Field Office in Santa Maria, Santa 
               Barbara County.

           FISCAL EFFECT  

          1)Unknown net revenue to the Armory Fund, conservatively in the 
            hundreds of thousands of dollars. Monies in the Armory Fund 
            area used to pay the state's share of costs for repair, 
            construction or renovation of armories. The state also will 
            realize minor savings from no longer maintaining these 
            properties, which the Military Department indicates are 
            currently vacant. (The department has 103 active armories 
            throughout the state.)

          2)Unknown net revenue to the General Fund from disposition of 
            the CDCR properties and the EDD property. To the extent 
            federal funds contributed to development of the EDD facility, 
            a commensurate share of the proceeds from this sale will go to 
            the federal government.

           COMMENTS  

           1)Purpose  . According to the author's office, the average age of 
            the armories proposed for sale is 60 years; they have reached 
            the end of their service life and are no longer practical or 
            safe for assembly of National Guard members. The Military 
            Department indicates these armories are undersized and have 
            decayed to a point where their ongoing maintenance costs far 
            outweigh their utility. 

            The other three properties constitute the DGS annual surplus 
            property bill. Current law requires all state agencies to 
            annually review and determine if any lands under their 
            jurisdiction are in excess of need. This information is 
            reported to DGS, which first determines if any properties can 
            be used by another state agency, and if not, seeks legislative 
            authorization to dispose of the properties. Upon such 
            authorization, DGS must first offer each surplus property to 








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            the relevant local agencies, and next to nonprofit affordable 
            housing sponsors prior to offering the property to private 
            entities through a bidding process.

            The DMV property in Santa Maria was declared surplus in 2007 
            in anticipation of a property exchange with that city. The 
            exchange never occurred, however, and DMV indicates that they 
            are not planning to vacate the building, thus SB 1580 rescinds 
            the surplus property designation for this facility.

           2)Prior Legislation  . SB 1481 (Committee on Governmental 
            Organization)/Chapter 528 of 2010, specified that the proceeds 
            from the sale of surplus armory properties are to be deposited 
            into the Armory Fund.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081