BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1580
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          SENATE THIRD READING
          SB 1580 (Governmental Organization Committee)
          As Amended  August 21, 2012
          Majority vote

           SENATE VOTE  :37-0  
           
           BUSINESS & PROFESSIONS     9-0  APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Bill Berryhill,  |Ayes:|Fuentes, Harkey,          |
          |     |Allen, Butler,            |     |Blumenfield,              |
          |     |Eng, Hagman, Hill, Ma,    |     |Bradford, Charles         |
          |     |Smyth                     |     |Calderon, Campos,         |
          |     |                          |     |Davis, Donnelly, Gatto,   |
          |     |                          |     |Hall, Hill,               |
          |     |                          |     |Lara, Mitchell, Nielsen,  |
          |     |                          |     |Norby,                    |
          |     |                          |     |Solorio, Wagner           |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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 one specified property.  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, 
               








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             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 sale of armories authorized above shall not 
            constitute a sale or other disposition of surplus property and 
            requires the sale proceeds to 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. 
               
          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 (EDD) 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 approximately two acres, 
            known as the Healdsburg Armory, located at 900 Powell Avenue, 
            Healdsburg, Sonoma County, declared surplus in AB 1123 (Berg), 
            Chapter 625, 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. (Military and Veterans Code Section 435)








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          2)Authorizes the DGS to develop and review an inventory of 
            property surplus to the needs of the state in portions or 
            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  :  According to the Assembly Appropriations 
          Committee: 

          1)Unknown net revenue to the Fund, conservatively in the 
            hundreds of thousands of dollars. Monies in the 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 
            MD indicates are currently vacant.  (The MD 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  :  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.  

          This first part of this bill would authorize the DGS, with the 
          Adjutant General's approval, to dispose of four armories, with 








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          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 armories are not deemed 
          state surplus property.  

          The second part of this bill may be considered as 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 
          those excess lands.   

          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.


           Analysis Prepared by  :    Joanna Gin / B., P. & C.P. / (916) 
          319-3301 


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