BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1900


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          Date of Hearing:  April 13, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1900 (Jones-Sawyer) - As Amended March 31, 2016


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          Urgency:  Yes State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill authorizes the sale of the San Pedro Courthouse.  
          Specifically, this bill:










                                                                    AB 1900


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          1)Authorizes Judicial Council to sell the San Pedro Courthouse,  
            a surplus property, at fair market value, upon the terms and  
            conditions that the Judicial Council deems in the best  
            interests of the state, conditioned on the Council consulting  
            with LA County on the sale and first offering the County the  
            right to purchase the property at fair market value.


          2)Provides that the proceeds from the sale shall be deposited  
            into the Special Fund for Economic Uncertainties, and then  
            immediately transferred to the Immediate and Critical Needs  
            Account (ICNA) of the State Court Facilities Construction  
            Fund.


          FISCAL EFFECT:


          Up to several million dollars of one-time revenue to the ICNA  
          from the proceeds of the sale, less the Judicial Council's  
          administrative costs, and ongoing savings in avoided operations  
          and maintenance costs for the courthouse.


          COMMENTS:


          1)Background and Purpose. As a result of budget constraints,  
            since 2008, 53 courthouses (215 courtrooms) were closed  
            statewide. Currently, 48 courthouses and 200 courtrooms remain  
            closed, including eight courthouses and 78 courtrooms in LA  
            County. In June 2013, the Superior Court of Los Angeles County  
            closed the San Pedro Courthouse and shifted the court's  
            caseload to the new Deukmejian Courthouse in Long Beach.  
            Currently, there are no plans to reopen the San Pedro  
            Courthouse.  Although the San Pedro Courthouse has been  
            vacated since its closure, the Judicial Council continues to  
            pay for the costs of the operations and the maintenance of  
            that site. This bill allows the Judicial Council to sell the  








                                                                    AB 1900


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            San Pedro Courthouse in accordance with authority provided to  
            the Council under current law.


          2)Immediate and Critical Needs Account. The Immediate and  
            Critical Needs Account of the State Court Facilities  
            Construction Fund (ICNA) was established by SB 1407 (Perata),  
            Chapter 311, Statutes of 2008, and provides funds for court  
            construction projects and other facility-related expenses.   
            Under SB 1407, Judicial Council is authorized up to $5 billion  
            in bond financing for court construction projects, to be  
            repaid by revenues from increases in civil and criminal fines  
            and fees and other revenue.


            Judicial Council initially selected 41 immediate and critical  
            need projects.  However, revenues intended for INCA projects  
            were instead diverted for several years due to court budget  
            shortfalls, hence two projects were cancelled and 11 projects  
            have been delayed indefinitely.


          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081