BILL ANALYSIS Ó SB 1580 Page 1 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, SB 1580 Page 2 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) SB 1580 Page 3 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 SB 1580 Page 4 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 FN: 0005212