BILL ANALYSIS Ó AB 2904 Page 1 Date of Hearing: April 13, 2016 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Cristina Garcia, Chair AB 2904 (Committee on Accountability and Administrative Review) - As Amended March 29, 2016 SUBJECT: State real property: disposition SUMMARY: Authorizes the Director of the Department of General Services (DGS) to dispose of specified surplus property and rescinds the prior surplus authorization of a specified parcel. Specifically, this bill: 1)Allows the Director of DGS to sell, exchange, sell combined with an exchange, or lease for fair market value, upon terms and conditions determined to be in the state's best interest, all or any part of a former California Highway Patrol field office in Stockton, California. 2)Rescinds the surplus authorization granted in Assembly Bill 826 (Jones-Sawyer), Chapter 505, Statutes of 2013, for the Employment Development Department's (EDD) office building in Vallejo, California, due to continued programmatic need for its use. EXISTING LAW: AB 2904 Page 2 1)Requires all state agencies to annually review and determine if any lands under their jurisdiction are in excess of programmatic need. This information is reported to DGS, which first determines if any properties can be used by another state agency, and if not, seeks legislative authorization to dispose of the properties. 2)Provides for the rescission of a parcel's surplus authorization if the property is no longer surplus to the state's needs. FISCAL EFFECT: Unknown COMMENTS: This measure is the surplus property bill sponsored by DGS. State agencies are required by Government Code Section 11011 to identify real properties which are excess to their needs. Legislative authorization is needed to declare real properties as surplus and permit their disposal by DGS. DGS provides the following justification for the properties specified in this bill: "DGS is seeking to surplus the former CHP parcel in Stockton because it is the result of a statewide upgrading of outdated and small existing field offices of the CHP. A new office is under construction nearby. According to the CHP, these locations no longer meet modern building codes, are not in compliance with the federal Americans with Disabilities Act, AB 2904 Page 3 and lack women's locker room facilities. All net proceeds from the sale of this property will be deposited into the Motor Vehicle Account. DGS has also received a request to rescind the surplus authorization for the EDD's Vallejo office building, which it still occupies. Previously, the Solano County Workforce Investment Board (WIB), an EDD partner and major building tenant, intended to end the partnership and seek a separate location. After the property was declared surplus, the Solano County WIB notified EDD that it no longer intended to end the partnership and move out. For the long term, EDD will likely remain co-located with this partner. Rescinding the surplus authorization for this property clarifies that it is still needed for state operations and is no longer available for potential sale." PRIOR LEGISLATION: The following measures are the most recent surplus property authorization and rescission bills sponsored by DGS and enacted into law: 1)AB 2174 (Assembly Accountability and Administrative Review Committee), Chapter 337, Statutes of 2014 2)AB 826 (Jones-Sawyer), Chapter 505, Statutes of 2013 3)SB 1580 (Senate Governmental Organization Committee), Chapter 798, Statutes of 2012 4)AB 1272 (Butler), Chapter 178, Statutes of 2011 5)SB 136 (Huff), Chapter 166, Statutes of 2009 6)AB 2026 (Villines), Chapter 761, Statutes of 2008 REGISTERED SUPPORT / OPPOSITION: Support AB 2904 Page 4 Department of General Services (sponsor) Opposition None on file Analysis Prepared by:Cassie Royce / A. & A.R. / (916) 319-3600