BILL ANALYSIS Ó AB 2247 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 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. SUMMARY: 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 AB 2247 Page 2 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 part: (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), AB 2247 Page 3 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: 0004577