BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 944
                                                                  Page  1

          Date of Hearing:  June 25, 2014

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                     SB 944 (Torres) - As Amended:  June 18, 2014

           SENATE VOTE  :  35-0
           
          SUBJECT  :  Surplus state property.

           SUMMARY  :  Prohibits one specified parcel of state real property,  
          the Lanterman Developmental Center, which has been declared  
          surplus, from being prezoned, zoned, or rezoned by any local  
          government unless the Department of General Services requests or  
          approves the zoning change, and makes several other changes to  
          state surplus property law.   Specifically,  this bill  :   

          1)Prohibits any local government from prezoning, zoning, or  
            rezoning the state real property known as Lanterman  
            Developmental Center, located at 3530 Pomona Boulevard,  
            Pomona, Los Angeles County, which has been declared surplus  
            pursuant to existing law, unless the Department of General  
            Services (DGS) requests that the property be rezoned or  
            approves the rezoning of the property.

          2)Requires a local agency or affordable housing developer, when  
            being considered a potential priority buyer for surplus  
            property, to demonstrate to DGS that the property is to be  
            used for, among other purposes, development of projects that  
            create sustainable jobs of benefit to the area and region  
            where the property is located.

          3)Specifies, if more than one local agency expresses interest in  
            the surplus property, that priority must be given to the  
            agency that intends to use it for affordable housing or  
            development of projects that create sustainable jobs of  
            benefit to the area and region where the property is located.

          4)Adds, to existing legislative intent that declares the  
            provision of decent housing for all Californians is a state  
            goal of the highest priority when the state disposes of  
            surplus property, the creation of sustainable jobs as a state  
            goal.

          5)Adds "development of projects that create sustainable  








                                                                  SB 944
                                                                  Page  2

            employment opportunities of benefit to the area and region  
            where the property is located" to the existing declaration of  
            legislative intent that DGS should give priority to housing  
            for persons and families of low- or moderate- income when  
            disposing of surplus state real property.

           EXISTING LAW  :

          1)Authorizes DGS to dispose of state real property declared  
            surplus by the Legislature by sale, lease, exchange, or any  
            other manner, and upon terms deemed to be in the state's best  
            interests.

          2)Requires surplus property that is not needed by any state  
            agency to first be offered to local agencies, and then to  
            nonprofit affordable housing sponsors, before being offered  
            for sale to private entities or individuals.

          3)Expresses legislative intent declaring that the provision of  
            decent housing for all Californians is a state goal of the  
            highest priority, and that priority be given to the disposal  
            of surplus property to housing for persons and families of  
            low- or moderate-income.

          4)Allows, pursuant to the California Constitution, a county or  
            city to make and enforce all local, police, sanitary and other  
            regulations not in conflict with state law (known as police  
            powers).

          5)Allows, pursuant to the California Constitution, charter  
            cities to make and enforce all ordinances and regulations in  
            respect to municipal affairs.

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

           COMMENTS  :   

           1)Purpose of this bill  .  This bill prohibits any local  
            government from prezoning, zoning, or rezoning the state real  
            property known as Lanterman Developmental Center, located at  
            3530 Pomona Boulevard, Pomona, Los Angeles County, which has  
            been declared surplus pursuant to existing law, unless DGS  
            requests that the property be rezoned or approves the rezoning  
            of the property.  This bill also adds "creation of sustainable  








                                                                  SB 944
                                                                  Page  3

            jobs" to existing legislative declarations that the provision  
            of decent housing for all Californians is a state goal of the  
            highest priority when the state disposes of surplus state real  
            property, and adds "development of projects that create  
            sustainable employment opportunities of benefit to the area  
            and region where the property is located" to the existing  
            declaration of legislative intent that DGS should give  
            priority to housing for persons and families of low- or  
            moderate-income when disposing of surplus state real property.
             
             This bill is author-sponsored.

           2)Author's statement  .  According to the author, "There are three  
            examples of local agencies initiating action to re-zone or  
            actually accomplishing re-zoning of excess real estate to  
            reduce or attempt to reduce the value.  They are:  the County  
            of Napa's rezoning of the Department of Mental Health's Napa  
            State Hospital, the City of Los Angeles' rezoning of the Los  
            Angeles Civic Center, and the City of Whittier's proposed  
            rezoning of the Fred C. Nelles Youth Correctional Facility.

            "In light of these examples, the issues has become of  
            particular importance to the constituents of the 32nd Senate  
            District.  This is because on January 29, 2010, the California  
            Department of Developmental Services announced its intent to  
            close the 302-acre Lanterman Developmental Center in Pomona,  
            California.  Upon closure, the property will be surplused.  If  
            the property is re-zoned it will likely result in a decrease  
            in market value, and potentially be re-zoned in a manner that  
            is inconsistent with the long term interests of the  
            surrounding area and region.  In particular, the need to  
            ensure sustainable job creation in an area of the state that  
            has an unemployment rate of 9.5%.
            "Moreover, as a result of Proposition 60A, revenues from the  
            sale of surplus state real property are to be used to pay the  
            principal and interest on bonds issued pursuant to the  
            Economic Recovery Bond (ERB) Act as established by Proposition  
            57.  Year-to-date, approximately $108.7 million in proceeds  
            from the sale of surplus property has been applied to the  
            repayment of ERB thereby alleviating pressure off the general  
            fund which is also utilized to pay off the bonds.

            "By authorizing DGS to approve the re-zoning of state surplus  
            property, SB 944 would ensure that the state receives the  
            highest value for its real property assets.  This in turn  








                                                                  SB 944
                                                                  Page  4

            would accelerate the repayment of ERB - allowing for the  
            allocation of general funds to other state priorities."

           3)Policy considerations  .  The Committee may wish to consider the  
            following:

              a)   Land use authority of cities and counties  .  The  
               California Constitution, in Article XI, Section 7, allows a  
               city or county to make and enforce all local, police,  
               sanitary, and other regulations not in conflict with state  
               law, commonly known as "police powers."    This police  
               power is broad in scope, so long as the exercise of the  
               police power has a rational relationship to a legitimate  
               governmental purpose such as the protection of the public's  
               health, safety, or general welfare.  This police power is  
               exercised through land use regulations, such as zoning  
               ordinances, local agency plans, and other types of  
               ordinances.
                
                The Committee may wish to consider whether DGS, rather than  
               the local city or county, is the best entity to determine  
               the future use of this parcel of surplus state property and  
               how that land's future development will fit with the  
               surrounding community's needs.

              b)   Precedent  .  While this bill is narrower in scope than  
               the previous version which applied to the zoning powers of  
               local agencies with respect to all surplus property, it  
               still creates a precedent of allowing DGS to trump the  
               authority of a local government to enact zoning ordinances.

              c)   Highest value vs. community "fit" with property use  .   
               The Committee may wish to consider whether getting the  
               highest value for the property is more important than the  
               needs of the community that surround the property.  

           4)Arguments in support  .  None on file

           5)Arguments in opposition  .  None on file

           6)Double-referral  .  This bill was heard by the Accountability  
            and Administrative Review Committee on June 17, 2014, where it  
            passed with a 12-1 vote.
           









                                                                 SB 944
                                                                  Page  5






          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958