BILL ANALYSIS Ó
Bill No: AB
826
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
AB 826 Author: Jones-Sawyer
As Proposed to be Amended in Committee: June 25, 2013
Hearing Date: June 25, 2013
Consultant: Paul Donahue
SUBJECT
State surplus property
DESCRIPTION
AB 826 authorizes the Department of General Services (DGS)
to dispose of eight surplus state properties. Specifically,
this bill :
1)Authorizes the Director of General Services to sell,
exchange, sell combined with an exchange, or lease for
fair market value, upon terms and conditions determined
to be in the state's best interest, all or any part of
the following 3 parcels of real property:
a) Approximately 15 acres and improvements known as a
portion of the California Department of Corrections
and Rehabilitation's Preston Youth Correctional
Facility. This property was used as Preston employee
housing. The Preston facility was closed on June 30,
2011, the structures are now vacant and beyond their
useful life. There is no departmental use for the
property.
b) Approximately 160 acres and improvements known as a
portion of the California Department of Corrections
and Rehabilitation's Estrella Correctional Facility.
This facility was closed in 2008. There is no
departmental use for the property.
AB 826 (Jones-Sawyer) continued
Page 2
c) Approximately 0.90 acres and improvements, known as
the Employment Development Department's Vallejo Office
Building, located at 1440 Marin Street, in Vallejo,
Solano County.
2)Authorizes DGS to sell all or a portion of the following
properties located in the City of Sacramento, County of
Sacramento, and leased by the Department to the Capitol
Area Development Authority. The properties shall be sold
for market value or upon the terms and conditions as the
Director determines are in the best interest of the
State:
a) Approximately .027 acres and improvements, located
at 1627 10th Street, in Sacramento.
b) Approximately .027 acres and improvements, located
at 1607 10th Street, in Sacramento.
c) Approximately .030 acres and improvements, located
at 1036 P Street, in Sacramento.
d) Approximately .025 acres and improvements, located
at 1603 10th Street, in Sacramento.
e) Approximately .039 acres and improvements, located
at 1601 10th Street, in Sacramento.
EXISTING LAW
1)Directs each state agency to review all land under its
jurisdiction, with certain exceptions, to determine what,
if any, land is in excess of its foreseeable needs and
report thereon in writing to DGS.
2)Authorizes DGS to dispose of surplus state real property
by sale, lease, exchange, a sale combined with an
exchange, or other manner of disposition of property, as
authorized by the Legislature, upon any terms and
conditions and subject to any reservations and exceptions
DGS deems to be in the best interests of the state.
3)Authorizes DGS to sell surplus real property to a local
agency, or to a nonprofit affordable housing sponsor for
affordable housing projects at a sales price less than
fair market value if DGS determines that such a discount
AB 826 (Jones-Sawyer) continued
Page 3
will enable the provision of housing for persons and
families of low or moderate income.
4)Authorizes DGS to transfer surplus real property to a
local agency for less than fair market value if the local
agency uses the surplus state real property for parks or
open-space purposes.
5)Establishes criteria for state agencies to use in
determining and reporting excess lands. A state agency
must report land as surplus that is:
a) Not currently utilized, or is underutilized, for
any existing or ongoing programs;
b) Land for which the agency cannot identify any
specific utilization relative to future needs; and,
c) Land not identified by the state agency within its
master plan for facility development.
6)Exempts the sale of surplus property sold "as is" from
designated provisions of the California Environmental
Quality Act (CEQA). However, the buyer or transferee of
a parcel is subject to CEQA as well as any local
governmental entitlement or land use approval
requirements.
7)Requires that the proceeds from the sale of surplus state
property, with specified exceptions, be used to pay the
principal and interest on the Economic Recovery Bond Act
of 2004. (Proposition 60A)
BACKGROUND
1)Purpose : According to the author's office, "This is the
annual DGS proposal for the disposal of excess state real
property. State agencies are required by Government Code
Section 11011 to identify real properties that are excess
to its needs. The proposal is necessary because
legislative authorization is needed to declare real
properties as surplus and to authorize their disposal by
DGS."
2)Background : This measure is an annual surplus property
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bill sponsored by 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,
DGS must determine if other state agencies can utilize
the land. If the state has no need, 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.
Under the provisions of Proposition 60A, the proceeds of
the sale of surplus property are used to pay the holders
of the state's deficit reduction bonds. These payments
are intended to accelerate the redemption of the state's
debt, and reduce future General Fund payments to the
bondholders.
3)Estrella Correctional Facility, San Luis Obispo County :
The DGS reports that this facility opened in 1947, and
through actions by both the Legislature (SB 81 and AB
191), and the courts (Farrell v. Cate) altering the
amount and type of youthful offenders entrusted to the
care of the Department's Division of Juvenile Justice, it
eventually closed in 2008.
4)Properties leased by DGS to CADA, Sacramento County : The
bill would authorize DGS to dispose of 5 properties that
are now leased to the Capitol Area Development Authority
(CADA). All of these properties are apartment buildings
in the CADA area surrounding the State Capitol. The CADA
Board of Directors has reportedly signed off on the sale
or transfer of these parcels.
PRIOR/RELATED LEGISLATION
SB 1645 (Mountjoy), Chapter 731, Statutes of 1998.
Authorizes Director of DGS to sell, convey, or exchange
properties that are not needed by any state agency at fair
market value under specified circumstances if 30-day notice
is provided to the JLBC and the applicable Members of the
Senate and Assembly who represent the district in which the
properties are located.
AB 826 (Jones-Sawyer) continued
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SUPPORT:
Department of General Services
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
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