BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2904


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          Date of Hearing:  April 27, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2904 (Accountability and Administrative Review) - As Amended  
          March 29, 2016


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          |Policy       |Accountability and             |Vote:|9 - 0        |
          |Committee:   |Administrative Review          |     |             |
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          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.








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          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.








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             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












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