BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 503
                                                                  Page  1

          Date of Hearing:   May 15, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 503 (Wieckowski) - As Amended:  April 24, 2013 

          Policy Committee:                               
          AccountabilityVote:10-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Requires the Director of the Department of General Services  
            (DGS) to transfer property at the former Agnews Developmental  
            Center to the Santa Clara Unified School District at fair  
            market value, based on a appraisals conducted by DGS and by  
            the district.

          2)Stipulates that the value of the property shall be reduced to  
            less than fair market value if a portion is zoned for parks  
            and open space.

           FISCAL EFFECT  

          Potential significant one-time loss of General Fund revenue to  
          the extent the property is sold at less than fair market value.

           COMMENTS  

           Background and Purpose  . SB 136 (Huff)/Chapter 166 of 2009, in  
          part authorized the director to dispose of 85 acres of surplus  
          state property at the former Agnews Developmental Center in  
          Santa Clara County. According to DGS, the department was in  
          negotiations with the school district for purchase of 54 acres  
          of the property. The parties could not come to agreement on the  
          terms of a sale, and negotiations ceased. The City of San Jose  
          has recently indicated its support of the school district's  
          efforts and seeks to obtain the remaining portion of the Agnews  
          property for a park. Negotiations have recently resumed among  
          the three parties. 








                                                                  AB 503
                                                                  Page  2


          The Legislature typically does not direct through statute the  
          sale of state property to a specific entity. Moreover, the  
          provision in this bill allowing for a sale at less than fair  
          market value could result in a loss of state revenue. 

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