BILL ANALYSIS                                                                                                                                                                                                    



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

          AB 2247 (Williams) - Armories
          
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          |Version: April 14, 2016         |Policy Vote: G.O. 12 - 0        |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Debra Cooper        |
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          This bill does not meet the criteria for referral to the  
          Suspense File.


          Bill  
          Summary:  AB 2247 would provide the City of Santa Barbara or the  
          Santa Barbara Unified School District the option to purchase the  
          Santa Barbara National Guard Armory until July 1, 2017. 


          Fiscal  
          Impact:  
           One-time costs to the Department of General Services (DGS) of  
            $35,000 to appraise and sell the armory. This cost will be  
            borne by the Property Acquisition Law Account and subsequently  
            reimbursed from armory sale proceeds. 


           Net proceeds from the sale will be deposited into the Armory  
            Fund. 


          Background:  The California Military Department (CMD) operates  







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          approximately 100 active armory sites throughout the state which  
          are used for unit training, mobilizing and housing troops when  
          the National Guard responds to wildfires, and serving as  
          emergency operations centers for other first-responder agencies.  
          A number of armories are made available each year by the CMD to  
          counties and cities for providing a temporary homeless shelter  
          during the winter months. 
          According to the author, many "community and civic facilities  
          are immediately adjacent to or near the Santa Barbara Armory,  
          including a Boys and Girls Club, Ortega Park, and Girls Inc."  
          This would make the armory an ideal site for school,  
          educational, and recreational programs.


          The federal government pays for 75% of an armory's construction  
          costs; while the state pays the remaining 25% and donates the  
          land. The state then manages the armory and pays for all  
          operational and maintenance costs. After 25 years, the federal  
          government fully transfers all ownership rights to the state.  
          Only in instances where the armory sits on federal land does the  
          state lack the authority to sell the armory.  


          Existing law requires each state agency to annually review all  
          proprietary state lands under its jurisdiction to determine if  
          any properties are in excess of the agency's foreseeable needs,  
          and to report such properties to DGS. DGS is then authorized to  
          sell, lease, or exchange surplus properties in the best  
          interests of the state. DGS uses the Property Acquisition Law  
          account to pay the upfront costs including, but not limited to,  
          appraisal fees, advertising expenses, and title searches that  
          are required to sell the property. Once a property is sold, the  
          Property Acquisition Law account is reimbursed from the  
          proceeds.


          Existing law treats the CMD differently from other state  
          agencies, granting it separate authority to manage, sell, and  
          lease its property. Legally and functionally, an unused armory  
          is not a surplus property, but rather assets that CMD must  
          properly manage. Existing law provides that all net proceeds  
          from the sale, lease, or exchange of armories are to be  
          deposited into the Armory Fund.









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          Proposed Law:  
            This bill would:
           Require the Director of General Services, with the approval of  
            the Adjutant General, to grant the City of Santa Barbara or  
            the Santa Barbara Unified School District an option to  
            purchase the Santa Barbara Armory. The option would expire on  
            July 1, 2017. 
           Specify that any purchase agreement shall include terms and  
            conditions determined by the Director of General Services to  
            be in the best interest of the state based on the fair market  
            value of the armory, based on the zoning as it existed on  
            March 1, 2016, as determined by an appraisal undertaken and  
            approved by the Director of General Services.
           Define the property comprising the "Santa Barbara Armory."




          Related  
          Legislation:  
          SB 536 (Roth, Chapter 355, Statutes of 2015) authorizes the sale  
          of seven specific armories, including the Santa Barbara Armory  
          and requires that net proceeds, as defined, from the sale or  
          lease of an armory are to be deposited into the Armory Fund.


          SB 1481 (Senate Committee on Governmental Organization, Chapter  
          528, Statutes of 2010) requires that the proceeds from the sale  
          of armories must be deposited in the Armory Fund, and upon  
          appropriation by the Legislature, used for the maintenance of  
          existing armories and for the acquisition or construction of new  
          or replacement armories.




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