BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1900 (Jones-Sawyer) - San Pedro courthouse
          
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          |Version: March 31, 2016         |Policy Vote: JUD. 7 - 0         |
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          |Urgency: Yes                    |Mandate: No                     |
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          |Hearing Date: August 11, 2016   |Consultant: Jolie Onodera       |
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          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 11, 2016






          Bill  
          Summary:  AB 1900, an urgency measure, would authorize the  
          Judicial Council to sell the property known as the San Pedro  
          courthouse, a surplus court facility, at fair market value and  
          upon specified terms and conditions. This bill would deposit and  
          transfer the sale proceeds from the Special Fund for Economic  
          Uncertainties to the Immediate and Critical Needs Account  
          (ICNA), and appropriate the funds to the Judicial Council for  
          the planning, design, construction, rehabilitation, renovation,  
          replacement, or acquisition of court facilities.


          Fiscal  
          Impact:  







          AB 1900 (Jones-Sawyer)                                 Page 1 of  
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            Sale proceeds  :  Redirection of one-time revenue potentially in  
            excess of several million dollars from the Special Fund for  
            Economic Uncertainties (SFEU) to the Immediate and Critical  
            Needs Account (ICNA). Under existing law, the proceeds from  
            the sale of surplus state property are to be deposited into  
            the SFEU (now that the principal and interest on the 2004  
            Economic Recovery Bonds have been fully paid). The 2016 Budget  
            Act reflects a 2016-17 ending balance of $1.75 billion in the  
            SFEU. Absent the declaration of the courthouse as "surplus  
            property," the net proceeds of the sale would potentially be  
            subject to reversion to the General Fund and the State Court  
            Facilities Construction Fund pursuant to Government Code §  
            70391(c)(1).
            Appropriation to Judicial Council  :  One-time appropriation  
            potentially in excess of several million dollars to the  
            Judicial Council from the ICNA. Annual revenues to the ICNA  
            have been declining, and the 2016 Budget Act reflects a  
            2016-17 ending balance of $87.8 million in the ICNA.
            Operations/maintenance  :  Future cost savings (General Fund*)  
            to the Judicial Council in avoided maintenance and operations  
            costs. Despite the closure of the courthouse at the end of  
            June 2013, the Judicial Council continues to share  
            responsibility with the county for maintenance and operations  
            costs pursuant to Government Code § 70343(a)(2). 
           
           *Trial Court Trust Fund


          Committee  
          Amendments:  Codify the provisions of the bill and make  
          technical changes including adding references to specify the  
          "net" proceeds of the sale.


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