BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1421
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1421 (Accountability and Administrative Review Committee)
          As Amended  June 12, 2013
          Majority vote
           
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          |ASSEMBLY:  |74-0 |(May 23, 2013)  |SENATE: |37-0 |(August 19,    |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    A. & A.R.  

           SUMMARY  :  Provides for the selection of local real estate  
          brokers to sell state surplus property and expands the types of  
          properties in current law that the Director of the Department of  
          General Services (DGS) may sell, convey, or exchange at fair  
          market value under specified circumstances to include  
          landlocked, remainder, and remnant parcels.  

           The Senate amendments  add property that is a remainder or  
          remnant parcel acquired as part of a capital outlay project, as  
          specified, to the types of properties that the Director of DGS  
          may sell, convey, or exchange at fair market value under  
          specified circumstances. 

           EXISTING LAW  authorizes the Director of DGS to sell, convey, or  
          exchange properties that are not needed by any state agency at  
          fair market value following 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.  This applies under any of the following  
          circumstances:

          1)Property of no more than five acres to a local governmental  
            agency for the purpose of local public works projects;

          2)Property received by the state as the result of a foreclosure,  
            seizure, or court action;

          3)Property that is being encroached on by an adjacent landowner,  
            and the Attorney General, state agency, and adjacent landowner  
            agree that the best way to resolve the matter is through a  
            sale of the property or an exchange of property of equal  
            value; and,









                                                                  AB 1421
                                                                  Page  2

          4)Property with a fair market value of less than $25,000.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version approved by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  DGS is sponsoring this bill to streamline current  
          real property management practices and provide savings to the  
          state.  According to DGS, this bill maximizes the opportunity  
          for the sale of hard-to-sell, remote, or unusual surplus  
          properties and will ensure that certain parcels of state land,  
          including land acquired as part of a capital outlay project, are  
          properly disposed of and help generate additional revenue for  
          the state.


           Analysis Prepared by  :    Cassie Royce / A. & A.R. / (916)  
          319-3600                                               FN:  
          0001390