BILL ANALYSIS                                                                                                                                                                                                    

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          2247 (Williams)

          As Amended  August 16, 2016

          Majority vote

          |ASSEMBLY:  |79-0  |(May 5, 2016)  |SENATE: |36-0  |(August 19,      |
          |           |      |               |        |      |2016)            |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |

          Original Committee Reference:  V.A.


          This bill requires the Director of the Department of General  
          Services (DGS), with the approval of the Adjutant General of the  
          Military Department (CMD), to grant specified cities and school  
          districts an option to purchase the Santa Barbara Armory,  
          Brawley Armory, Indio Armory, Lynwood Armory, and Pomona Armory,  
          as defined. 

          When it left the Assembly this bill required CMD to first grant  
          the City of Santa Barbara or the Santa Barbara Unified School  
          District an option to purchase that armory if the armory should  
          be sold.  

          The Senate amendments:  1) add additional armories with similar  


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          sale term requirements:  a) If the CMD should sell the Brawley  
          Armory, Indio Armory, Lynwood Armory, or Pomona Armory,  
          specified local governmental entities must receive an option to  
          purchase the property.  b) specify that any purchase agreement  
          shall include terms and conditions determined by DGS 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,  
          c) add Senators Lara, Leyva, and Stone as coauthors, and d) add  
          Assembly Members Eduardo Garcia and Rodriguez as coauthors. 

          EXISTING LAW:  Military and Veterans Code Section 435 states in  

            (a)The Director of General Services, with the approval of the  
            Adjutant General, may lease for not more than 99 years or sell  
            for fair market value upon terms and conditions and subject to  
            any reservations and exceptions as may be determined to be in  
            the best interests of the state any real property held for  
            armory purposes.  Real property shall not be sold or leased  
            pursuant to this subdivision unless the Legislature, by  
            statute, approves the sale or lease of the property.

            (b) There is in the State Treasury the Armory Fund.  All net  
            proceeds from the sale or lease of an armory shall be  
            deposited in the fund.  The money in the fund is available,  
            upon appropriation by the Legislature, for the maintenance of  
            existing armories, and for the acquisition or construction of  
            new or replacement armories ?

          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, the approximate fiscal impact for the single sale  
          (the Santa Barbara Armory) is $25,000, and according to the  
          Senate Appropriations Committee $35,000.  The bill now involves  
          an additional four armories.

          COMMENTS:  All of the armories impacted by the bill are already  
          authorized for sale as a result of the passage of SB 536 (Roth),  


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          Chapter 355, Statutes of 2015.  The options in the bill are at  
          fair market value, reasonable in their length and terms, and are  
          granted to local governmental entities.  The bill as amended  
          balances the community interest in the armories with the states'  
          interest in generating maximum funds from the sale for use in  
          modernizing California's armory system.

          The bill highlights the need for future policy discussion.  The  
          fate of armories the CMD might sell is very important to the  
          communities in which those armories are located.  In the future  
          if the Legislature authorizes additional armories for sale, it  
          may be worthwhile to consider requiring a single standardized  
          process including but not limited to notification to specified  
          local governmental entities, a fixed time window for their  
          response, and general terms and conditions balancing the various  
          stakeholder interests in such sales.  

          Analysis Prepared by:                                             
                          John Spangler / V.A. / (916) 319-3550  FN: