BILL ANALYSIS Ó AB 2174 Page 1 Date of Hearing: April 30, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 2174 (Accountability and Administrative Review Committee) - As Amended: March 28, 2014 Policy Committee: AccountabilityVote:13-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill authorizes the Director of General Services (DGS) to dispose of the following state surplus properties: 1)The 0.4-acre Employment Development Department (EDD) parking lot on Turk Street in San Francisco. 2)The 0.3-acre EDD parking lot on Golden Gate Ave. in San Francisco. 3)The 1.5-acre Bercut Drive Building in Sacramento County. FISCAL EFFECT Unknown one-time General Fund revenue, likely in the millions of dollars, from sale of the properties. The federal government has a 62% interest in the Turk Street property, thus a proportionate share of the sale proceeds for this property will be deposited in the Unemployment Insurance Fund. COMMENTS 1)Purpose . This is the annual DGS surplus property bill. Current law requires all state agencies to annually review and determine if any lands under their jurisdiction are in excess of need. This information is reported to DGS, which first determines if any properties can be used by another state agency, and if not, seeks legislative authorization to dispose of the properties. Upon such authorization, DGS must first offer each surplus property to the relevant local agencies, AB 2174 Page 2 and next to nonprofit affordable housing sponsors prior to offering the property to private entities through a bidding process. According to DGS, there is no programmatic need or plan for expansion that merit the state maintaining control of the EDD parcels. The Bercut Drive building has evidence of serious roof leaks and is non-compliant with the Americans with Disability Act. The building is vacant no state programmatic use is foreseeable. 2)Prior Legislation . The most recently enacted surplus property bills sponsored by DGS were: a) AB 826 (Jones/Sawyer)/Statutes of 2013 b) SB 1580 (Senate Governmental Organization Committee)/Statutes of 2012 c) AB 1272 (Butler)/Statutes of 2011 Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081