BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1900 (Jones-Sawyer) - San Pedro courthouse ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 31, 2016 |Policy Vote: JUD. 7 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 11, 2016 |Consultant: Jolie Onodera | | | | ----------------------------------------------------------------- *********** 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 ? 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. -- END --