BILL NUMBER: AB 1656 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 23, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Dickinson
FEBRUARY 11, 2014
An act to add Section 14669.16 to the Government Code, relating to
the Department of General Services.
LEGISLATIVE COUNSEL'S DIGEST
AB 1656, as amended, Dickinson. Department of General Services:
State Board of Equalization headquarters.
Existing law creates the Department of General Services to provide
centralized services, including, but not limited to, planning,
acquisition, construction, and maintenance of state buildings and
property, purchasing, printing, architectural services,
administrative hearings, and accounting services. Existing law
provides that the Department of General Services is under the control
of an executive officer known as the Director of General Services.
This bill would authorize the Director of General Services,
with the consent of in consultation with
the State Board of Equalization, to enter into one or more
agreements for the planning, design, construction, and acquisition of
facilities, including any improvements, betterments, and related
facilities, and to enter into a lease, lease-purchase,
lease-purchase or a lease with an option to
purchase, for the relocation and consolidation of the State Board of
Equalization, according to specific conditions. This
The bill would require the Department of General
Services to be reimbursed for the cost of entering into these
agreements or leases in an amount not to exceed $3,000,000 from a
loan of funds in the Architecture Revolving Fund, as specified. The
bill also would authorize the State Board of Equalization to
relocate and consolidate its offices without obligation to pay rent
on the existing state-owned or state-leased facilities after they are
vacated.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature hereby finds and declares all of the
following:
(a) Located in the City of Sacramento, the state owns
approximately 2.50 acres of real property on one city block bounded
by N Street on the north, 5th Street on the east, O Street on the
south, and 4th Street on the west, that is the State Board of
Equalization's current state-owned headquarters. The state-owned
facility is a 24-story building that contains approximately 616,000
gross square feet, with 463,000 useable
usable square feet of office space. The ground floor contains a
full-service cafeteria and a child care center. The state-owned
facility also includes a three-story parking structure with 711
spaces.
(b) The State Board of Equalization collects taxes and fees that
provide approximately 35 percent of the annual revenue for state
government and essential funding for cities, counties, and special
districts. In the 2012-13 fiscal year, the State Board of
Equalization-administered tax and fee programs produced $56 billion
for education, public safety, transportation, housing, health
services, social services, and natural resource management.
(c) The current State Board of Equalization headquarters building
lacks sufficient space to meet the State Board of Equalization's
existing and future consolidated space needs.
(d) The state has expended approximately $65 million in taxpayer
dollars over the last decade to make repairs to the State Board of
Equalization building. The State plans to spend another $30 million
or more to address new issues with the building.
(e) Consolidating the various State Board of Equalization
headquarters and annexes into one location will greatly facilitate
and improve the efficiency of the administrative operations of the
agency.
(f) Allowing the State Board of Equalization to move out of the
real property described in subdivision (a) permanently and to
consolidate its operations into one location will accommodate future
growth as part of its revenue-administrative mission.
SEC. 2. Section 14669.16 is added to the Government Code, to read:
14669.16. (a) For purposes of this section, the "Sacramento
property" means the 2.50 acres of real property, owned by the state
and located in the City of Sacramento, on one city block bounded by N
Street on the north, 5th Street on the east, O Street on the south,
and 4th Street on the west, that is the State Board of Equalization's
current state-owned headquarters.
(b)
14669.16. (a ) (1)
Notwithstanding any other law, the Director of General Services,
with the consent of in consultation with
the State Board of Equalization, may enter into one or more
agreements for the planning, design, construction, and acquisition of
facilities, including any improvements, betterments, and related
facilities, for the relocation of the State Board of Equalization in
the Sacramento region. The Director of General Services may enter
into a lease, lease-purchase, lease-purchase
or a lease with an option to purchase to provide usable office
and related space in the Sacramento region in order to consolidate
various departments of the State Board of Equalization into a single
location.
(2) The Department of General Services shall undertake and
complete a site selection for the purposes of relocating and
consolidating the State Board of Equalization's headquarters and
annexes in the Sacramento region no later than June 30, 2015.
(3)
(2) The department Department
of General Services shall solicit and accept proposals for
acquiring or constructing consolidated facilities for the State Board
of Equalization on the basis of the best value. For purposes of this
paragraph, "best value" means a value determined by objective
criteria, including, but not limited to, price, features, functions,
life-cycle costs, experience, and other criteria deemed appropriate
by the department.
(4)
( 3) The department
Department of General Services shall develop the terms and
conditions of the agreements or leases authorized by paragraph (1) no
later than December 31, 2015.
(5) In connection with the selection and acquisition of a lease,
lease-purchase, or a lease with an option to purchase, the department
may solicit and accept proposals for the sale, exchange, lease,
rehabilitation, or any combination thereof, of all or a portion of
the Sacramento property.
(c)
(b) The department Department
of General Services shall provide notice of the terms and
conditions of the proposed agreements or leases to the chairs of the
fiscal committees of the Legislature and the Joint Legislative Budget
Committee, or their designees, at least 45 days prior to executing
the agreement for a lease, lease-purchase,
lease-purchase or lease with an option to purchase real
property authorized by this section. The department may proceed with
the agreement or lease 45 days following the date the department gave
notice to the above-mentioned chairs.
(d) The department shall determine whether it is in the best
interest of the state to sell, to lease to other tenants, or to
exchange the Sacramento property. The department shall report to the
chairs of the fiscal committees of the Legislature and the Joint
Legislative Budget Committee, or their designees, on the most
cost-effective option for the state.
(e) (1) Upon the Director of General Services making the
determination specified in subdivision (d) that the Sacramento
property should be either sold, exchanged, or leased to another
tenant, the Director of General Services may sell, exchange, lease,
or any combination thereof, all or a portion of the Sacramento
property. Upon sale, exchange, or lease of the Sacramento property,
and subject to the requirements of Section 9 of Article III of the
California Constitution, the Director of General Services shall make
an early payoff of the total outstanding lease revenue bonds on the
Sacramento property, including accrued interest and any other
obligations associated with the Sacramento property, using the
revenues resulting from any sale, exchange, or lease.
(2) In the event that the Director of General Services sells the
Sacramento property and the sale constitutes a sale of surplus state
property for purposes of Section 9 of Article III of the California
Constitution, the "proceeds from the sale" for purposes of that
section shall be the revenues from the sale in excess of the amount
necessary to satisfy the total outstanding bonds on the Sacramento
property, as required by paragraph (1).
(c) The Department of General Services shall be reimbursed for the
department's costs pursuant to subdivision (a), in an amount not to
exceed three million dollars ($3,000,000), from a loan of funds that
are continuously appropriated pursuant to Section 14957 and deposited
into the Architecture Revolving Fund for repairs to the State Board
of Equalization's headquarters building located at 450 N Street in
the City of Sacramento. Any amounts loaned pursuant to this
subdivision shall be repaid from the State Board of Equalization's
operating funds within five years from the date those funds were
borrowed. Interest charges shall be waived pursuant to subdivision
(e) of Section 16314.
(f)
(d) Notwithstanding subdivision (c) of Section 14682,
the State Board of Equalization is authorized to relocate its offices
from existing state-owned or state-leased facilities for the purpose
of consolidating the State Board of Equalization headquarters and
annexes into a single location without any obligation to pay rent on
those facilities after vacating such premises.