California Legislature—2015–16 Regular Session

Assembly Bill No. 1907

Introduced by Assembly Member Daly

February 11, 2016

An act to repeal Sections 3884.1 and 3884.2 of the Food and Agricultural Code, relating to district agricultural associations.

LEGISLATIVE COUNSEL’S DIGEST

AB 1907, as introduced, Daly. Orange County Fair: sale of state property.

Existing law divides the state into agricultural districts within the boundaries of which agricultural associations may be formed. Existing law creates District 32a from real property commonly known as the Orange County Fair and authorizes the Department of General Services to sell all or any portion of the real property that composes District 32a.

This bill would repeal the provision creating District 32a out of the Orange County Fair property and would repeal the provision authorizing the sale of that property by the department. The bill would also repeal the creation of the District 32a Disposition Fund in the State Treasury.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 3884.1 of the Food and Agricultural Code
is repealed.

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3884.1.  

There is hereby created District 32a, which consists
of all of that real property that is a portion of District 32 that is
commonly known as the Orange County Fair located in the City
of Costa Mesa. Notwithstanding any other law, any officer of
District 32a may also be an officer of District 32 and shall be a
resident of District 32. All otherwise applicable ethical duties,
including those in Section 1090 of the Government Code,
subdivision (a) of Section 8920 of the Government Code, and the
Political Reform Act of 1974 (Title 9 (commencing with Section
81000) of the Government Code), shall apply to the officers of
both District 32 and District 32a, and shall apply in regard to the
transactions contemplated by Section 3884.2.

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SEC. 2.  

Section 3884.2 of the Food and Agricultural Code is
repealed.

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3884.2.  

(a) The District 32a Disposition Fund is hereby created
in the State Treasury.

(b) The Department of General Services may sell all or any
portion of the real property that composes District 32a. District
32a shall not enter into any contract, lease, or other agreement
affecting the use or operation of the real property for a period that
exceeds three months, and all of these contracts, leases, or other
agreements shall contain a provision that they may be canceled
upon a 30-day notice from the Department of General Services.
The Department of General Services shall be reimbursed for any
reasonable cost or expense incurred for the transactions described
in this section. Additionally, to the extent bonds issued by the State
Public Works Board or other entity involve the property to be sold
pursuant to this section, all issuer- and trustee-related costs
associated with the review of any proposed sale, together with the
costs related to the defeasance or retirement of any bonds, which
may include the cost of nationally recognized bond counsel, shall
be paid from the proceeds of any sale or lease authorized by this
section. The net proceeds from the sale shall be deposited into the
District 32a Disposition Fund.

(c) The sale of the real property authorized by this section shall
be pursuant to a public bidding process designed to obtain the
highest, most certain return for the state from a responsible bidder,
and any transaction based on such a bidding process shall be
deemed to be the fair market value for the property. A notice of
this bidding process shall be posted by the Department of General
Services on its Internet Web site for at least 30 days prior to the
sale of the real property. The provisions of Section 11011.1 of the
Government Code are not applicable to the sale of real property
authorized under this section.

(d) Thirty days prior to executing a transaction for a sale of real
property authorized by this section, the Director of General
Services shall report to the chairpersons of the fiscal committees
of the Legislature all of the following:

(1) The financial terms of the transaction.

(2) A comparison of fair market value for the real property and
the terms listed in paragraph (1).

(3) Any basis for agreeing to terms and conditions other than
fair market value.

(e) As to the real property sold pursuant to this section, the
Director of General Services shall except and reserve to the state
all mineral deposits, as defined in Section 6407 of the Public
Resources Code, together with the right to prospect for, mine, and
remove the deposits. If, however, the Director of General Services
determines that there is little or no potential for mineral deposits,
the reservation may be without surface right of entry above a depth
of 500 feet, or the rights to prospect for, mine, and remove the
deposits shall be limited to those areas of the real property
conveyed that the director determines to be reasonably necessary
for the removal of the deposits.

(f) The Department of General Services shall report to the
Legislature on or before June 30 of each year on the status of the
sale of real property authorized by this section.

(g) Upon the sale of all property that composes District 32a,
District 32a shall be abolished and all funds in the District 32a
Disposition Fund shall be transferred to the General Fund.

(h) (1) The disposition of state real property or buildings
specified in subdivision (b) that are made on an “as is” basis shall
be exempt from Chapter 3 (commencing with Section 21100) to
Chapter 6 (commencing with Section 21165), inclusive, of Division
13 of the Public Resources Code. Upon title to the parcel vesting
in the purchaser or transferee of the property, the purchaser or
transferee shall be subject to any local governmental land use
entitlement approval requirements and to Chapter 3 (commencing
with Section 21100) to Chapter 6 (commencing with Section
21165), inclusive, of Division 13 of the Public Resources Code.

(2) If the disposition of state real property or buildings specified
in subdivision (b) is not made on an “as is” basis and close of
escrow is contingent on the satisfaction of a local governmental
land use entitlement approval requirement or compliance by the
local government with Chapter 3 (commencing with Section 21100)
to Chapter 6 (commencing with Section 21165), inclusive, of
Division 13 of the Public Resources Code, the execution of the
purchase and sale agreement or of the exchange agreement by all
parties to the agreement shall be exempt from Chapter 3
(commencing with Section 21100) to Chapter 6 (commencing with
Section 21165), inclusive, of Division 13 of the Public Resources
Code.

(3) For the purposes of this subdivision, “disposition” means
the sale, lease, or repurchase of state property or buildings specified
in subdivision (b).

(i) The disposition of real property or buildings, or both,
pursuant to this section does not constitute a sale or other
disposition of state surplus property within the meaning of Section
9 of Article III of the California Constitution and shall not be
subject to subdivision (g) of Section 11011 of the Government
Code.

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