BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Senator Isadore Hall, III
                                        Chair
                                2015 - 2016  Regular 

          Bill No:           AB 2904          Hearing Date:    6/14/2016
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          |Author:    |Committee on Accountability and Administrative       |
          |           |Review                                               |
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          |Version:   |3/29/2016    Amended                                 |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Felipe Lopez                                         |
          |           |                                                     |
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          SUBJECT: State real property:  disposition


            DIGEST:    This bill authorizes the Director of the Department  
          of General Services (DGS) to dispose of a specified surplus  
          property, known as the California Highway Patrol field office in  
          Stockton, California, and rescinds the prior surplus  
          authorization of a specified parcel, known as the Employment  
          Development Department's (EDD) Vallejo Building in Vallejo,  
          California. 

          ANALYSIS:
          
          Existing law:
          
          1)Provides that DGS may acquire and dispose of surplus state  
            real property where that property is not needed by another  
            state agency and the Legislature has authorized disposal of  
            the property. 

          2)Authorizes DGS to sell, exchange, sell combined with an  
            exchange, or lease for fair market value, upon those terms and  
            conditions as the Director determines are in the best  
            interests of the state, all or any part of a parcel consisting  
            of approximately 0.90 acres and improvements, known as the  
            Employment Development Department's Vallejo Office building,  
            located at 1440 Marin Street, in Vallejo, Solano County.








          AB 2904 (Committee on Accountability and Administrative Review)   
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          3)Requires that the proceeds from the sale of surplus state  
            property be used to pay the principal and interest on bonds  
            issued pursuant to the Economic Recovery Bond Act, until the  
            principal and interest on those bonds are fully paid, the  
            final payment of which was made in the 2015-16 fiscal year,  
            after which these proceeds are required to be deposited into  
            the Special Fund for Economic Uncertainties, a continuously  
            appropriated Fund. 

          This bill:

          1)Authorizes 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 authorizations for the Employment  
            Development Department's office building in Vallejo,  
            California, due to continued need for its use. 

          Background

          Purpose of the bill.  According to the author, "legislative  
          authorization is needed to declare real properties as surplus  
          and to authorize their disposal by DGS.  If a state agency  
          identifies a continued need for a property that was previously  
          declared surplus, legislative approval is needed to remove the  
          surplus authorization."

          Prior/Related Legislation
          
          AB 1880 (Irwin, 2016) would authorize DGS to revert a specified  
          parcel of state real property to the City of Buenaventura.   
          (Pending in Senate Governmental Organization Committee)

          AB 2174 (Accountability and Administrative Review Committee,  
          Chapter 337, Statutes of 2014) authorized DGS to dispose of  
          seven surplus state properties.

          AB 826 (Jones-Sawyer, Chapter 505, Statutes of 2013) authorized  
          DGS to dispose of eight surplus state properties including the  
          EDD's office building in Vallejo, California. 









          AB 2904 (Committee on Accountability and Administrative Review)   
                         Page 3 of ?
          
          
          FISCAL EFFECT:                 Appropriation:  Yes    Fiscal  
          Com.:             Yes          Local:          No


            SUPPORT:  

          Department of General Services (Source)

          OPPOSITION:       

          None received

          ARGUMENTS IN SUPPORT:    According to DGS, "the surplus parcel  
          located in Stockton 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 ADA, and lack women's locker room facilities." 

          In addition, DGS specifies that, "this bill also rescinds the  
          surplus authorization for the Employment Development  
          Department's Vallejo Office Building.  Previously, an EDD  
          Partner and major building tenant intended to end the  
          partnership and seek a separate location.  After the property  
          was declared surplus, the partner notified EDD that it no longer  
          intended to end the partnership and move out, so for the long  
          term, EDD will likely remain co-located with this partner."