BILL ANALYSIS Ó AB 2904 Page 1 Date of Hearing: April 27, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2904 (Accountability and Administrative Review) - As Amended March 29, 2016 ----------------------------------------------------------------- |Policy |Accountability and |Vote:|9 - 0 | |Committee: |Administrative Review | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill: 1)Allows the Director of the Department of General Services (DGS) to dispose or lease for fair market value, upon terms and conditions determined to be in the state's best interest, the former CHP field office in Stockton. AB 2904 Page 2 2)Rescinds a prior authorization granted in 2013 to dispose of the Employment Development Department's (EDD) office building in Vallejo (Solano County). FISCAL EFFECT: Unknown additional one-time revenue from the property disposition. DGS has not performed an appraisal of this property. To the extent the Stockton property was acquired with General Fund moneys, the proceeds of any sale, net of DGS transaction costs, must be directed to the Special Fund for Economic Uncertainties. To the extent the property was acquired with moneys from a special fund, net proceeds from a sale will be deposited in that fund. COMMENTS: 1)Purpose. This is the annual DGS-sponsored surplus property bill. Current law requires all state agencies to annually review and determine if any lands under their jurisdiction are in excess of 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. Upon such authorization, DGS must first offer each surplus property to the relevant local agencies, and next to nonprofit affordable housing sponsors prior to offering the property to private entities through a bidding process. AB 2904 Page 3 a) CHP Stockton. DGS is seeking to surplus the former CHP parcel in Stockton. As part of a statewide upgrading of outdated and small existing CHP field offices, a replacement facility is under construction nearby. b) EDD Vallejo. This property was declared surplus authorized for disposal as part of AB 826 (Jones-Sawyer), Chapter 505, Statutes of 2013, because the Solano County Workforce Investment Board (WIB), an EDD partner and major building tenant, intended to end the partnership and seek a separate location. The WIB subsequently notified EDD that it no longer intended to end the partnership and relocate. 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. 2)Prior Legislation. The following measures are the most recent surplus property authorization and rescission bills sponsored by DGS and enacted into law: a) AB 2174 (Assembly Accountability and Administrative Review Committee), Chapter 337, Statutes of 2014 b) AB 826 (Jones-Sawyer), Chapter 505, Statutes of 2013 c) SB 1580 (Senate Governmental Organization Committee), Chapter 798, Statutes of 2012 d) AB 1272 (Butler), Chapter 178, Statutes of 2011 e) SB 136 (Huff), Chapter 166, Statutes of 2009 f) AB 2026 (Villines), Chapter 761, Statutes of 2008 Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 AB 2904 Page 4