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 ----------------------------------------------------------------- |ASSEMBLY: |74-0 |(May 23, 2013) |SENATE: |37-0 |(August 19, | | | | | | |2013) | ----------------------------------------------------------------- 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