BILL NUMBER: AB 1421	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 19, 2013
	PASSED THE ASSEMBLY  AUGUST 22, 2013
	AMENDED IN SENATE  JUNE 12, 2013
	AMENDED IN ASSEMBLY  MAY 8, 2013

INTRODUCED BY   Committee on Accountability and Administrative Review
(Frazier (Chair), Achadjian (Vice Chair), Ian Calderon, Cooley,
Hagman, Lowenthal, Medina, Quirk-Silva, and Salas)

                        MARCH 21, 2013

   An act to amend Sections 11011.5 and 14664 of the Government Code,
relating to surplus state property, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1421, Committee on Accountability and Administrative Review.
Surplus state property: realtors and landlocked properties.
   (1) Existing law prescribes a process for the sale of surplus
state real property. This process requires each state agency to
report annually to the Department of General Services any proprietary
state lands under the jurisdiction of that agency that are in excess
of its foreseeable needs. Existing law provides certain exceptions
from this requirement, including, among others, lands under the
jurisdiction of specified state entities. Existing law requires the
department to determine if excess land is needed by another agency
and, if it is, to provide for transfer to another agency. Existing
law authorizes a state agency authorized to sell surplus state
property to employ a licensed real estate broker, with the approval
of the department, for a negotiated commission not to exceed
reasonable and customary brokerage commissions applicable to similar
privately owned properties in the area. Existing law prohibits the
Director of General Services from employing the services of a broker
unless the director determines that the employment of a broker to
sell the property would result in a cost savings to the state.
   This bill would revise the authorization for a state agency
selling surplus state property to employ a licensed real estate
broker to require that the broker be local with respect to that
property and would prescribe requirements for the selection of the
broker. The bill would require the state to adopt criteria to
determine the competence and qualification for the services to be
performed and to evaluate the customary brokerage commission to be
charged based on services in the area.
   (2) Existing law authorizes the Director of the Department of
General Services, without regard to any other law, upon the written
request and consent, as specified, to sell, convey, or exchange
specified properties that are not needed by any state agency at fair
market value following a 30-day notice to the Joint Legislative
Budget Committee and the applicable Members of the Senate and
Assembly who represent the district in which the properties are
located. Existing law requires, in this context, that the surplus
character of certain properties, including those obtained as a result
of seizure or with a market value of less than $25,000, be
established pursuant to the general surplus property procedures
described above. Existing law requires that funds received from these
sales be handled the same as those funds received from surplus
property sales, as specified.
   This bill would authorize the Director of the Department of
General Services, pursuant to the provisions described above, to
sell, convey, and exchange property that is landlocked or without
legal access from a public road, street, or highway; property that is
a remainder or remnant parcel having a diminished economic utility
or value, as specified, if the sale, conveyance, or exchange is with
the owner of an adjoining property, and the property meets specified
size limitations; and property that is a remainder or remnant parcel
acquired as part of a capital outlay project where the request to
sell the property is made by the jurisdictional agency within one
year of its purchase. The bill would also remove the requirement that
the surplus character of certain properties be established pursuant
to the general surplus property procedures, as described above.
   (3) The California Constitution provides that the proceeds from
the sale of surplus state property be used to pay the principal and
interest on bonds issued pursuant to the Economic Recovery Bond Act
until the principal and interest on those bonds are fully paid, after
which these proceeds are required to be deposited into the Special
Fund for Economic Uncertainties. Existing statutory law similarly
requires that the net proceeds received from any real property
disposition be paid into the Deficit Recovery Bond Retirement Sinking
Fund Subaccount, a continuously appropriated fund, until the bonds
issued pursuant to the act are retired.
   By increasing the amount transferred into a continuously
appropriated fund, this bill would make an appropriation.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11011.5 of the Government Code is amended to
read:
   11011.5.  (a) If no state or other public entity seeks to obtain
title to specific surplus state-owned real property, a state agency
authorized to sell that property, except property acquired for state
highway purposes, may, with the approval of the Department of General
Services, employ a licensed real estate broker who is local with
respect to that property for a negotiated commission not to exceed
reasonable and customary brokerage commissions applicable to similar
privately owned properties in the area in connection with that sale
and pay the amount of commission earned by the broker. The commission
shall be paid only out of the proceeds of the sale before the
proceeds are remitted to the State Treasury. The Director of General
Services shall only employ the services of a broker if the director
determines that the employment of a broker to sell the property would
result in a cost savings to the state. Any state properties sold
through the services of a broker shall be reported, along with a
comparison of the estimated cost savings obtained through the use of
a broker, in the annual surplus property report to the Legislature
required pursuant to Section 11011.
   (b) Notwithstanding any other law, the state's selection for the
professional services of a licensed real estate broker shall be made
on the basis of the location of the property, the broker's
demonstration of knowledge of the local real estate market and
success in selling real property in the local market, and on
demonstrated competence and the professional qualifications necessary
for the satisfactory performance of the services required. To
implement this selection method, the state shall adopt specific
criteria to determine the competence and qualification for the
services to be performed and to evaluate the customary brokerage
commission to be charged based on services in the area.
  SEC. 2.  Section 14664 of the Government Code is amended to read:
   14664.  (a) The director may execute grants to real property
belonging to the state in the name and upon behalf of the state,
whenever the sale or exchange of real property is authorized or
contemplated by law, if no other state agency is specifically
authorized and directed to execute the grants. The director may also
execute deeds or any other instruments necessary to correct erroneous
descriptions on deeds by which the state acquired title.
   (b) (1) Notwithstanding any other law, upon the written request
and consent of the state agency with control or jurisdiction over the
property concerned, the director may sell, convey, or exchange
properties that are not needed by any state agency at fair market
value following a 30-day notice to the Joint Legislative Budget
Committee and the applicable Members of the Senate and Assembly who
represent the district in which the properties are located, under any
of the following circumstances:
   (A) Property, not to exceed five acres, to a local governmental
agency for the purpose of local public works projects, including, but
not limited to, utility rights-of-way, drainage ditches, road
widening, including curbs, gutters, sidewalks, and small parking
lots.
   (B) Property with a fair market value of up to one million dollars
($1,000,000) received by the state through the office of the
Attorney General or another state agency as the result of a
foreclosure, seizure, or court action.
   (C) Property that is being encroached on, where the adjacent
landowner and the state agency with control or jurisdiction over the
property concerned, the director, and the Attorney General agree that
the best manner in which to resolve the matter is through a sale of
the property or for an exchange of property of equal value.
   (D) Property not needed by any state agency with a fair market
value of less than twenty-five thousand dollars ($25,000).
   (E) Property, not to exceed 50 acres, that is landlocked, or
without legal access from a public road, street, or highway, if the
sale, conveyance, or exchange is with the owner of an adjoining
property.
   (F) Property, not to exceed 15 acres, that is a remainder or
remnant parcel having a diminished economic utility or value due to
its size, shape, location, or other detrimental characteristics if
the sale, conveyance, or exchange is with the owner of an adjoining
property.
   (G) Property that is a remainder or remnant parcel of property
acquired as part of a capital outlay project, if the request to sell
the property is made by the jurisdictional agency within one year of
its purchase date.
   (2) All funds received by the state pursuant to this subdivision
shall be handled in the identical manner as funds received from state
property disposed of pursuant to Section 11011.